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 Practical economic c 
 
 3 1924 031 300 597 
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University 0/ the State of New York /' Subject no. 
 
 University Extension Department 33O 
 
 Albany, N. V. 
 
 Syllabus 1 Jan. iSgz 
 
 PRACTICAL ECONOMIC QUESTIONS 
 
 By Prof. J. W. Jenka, Ph. D., Cornell University 
 
 Part I Reading list 
 
 LIST OF AUTHORITIES REFERRED TO 
 Not Including periodicals 
 
 Adams, Henry Carter. Outlines of lectures on political 
 .; economy. 85p. O. Ann Arbor. 1886. Sheehan, 50c. 
 
 Andrews, Elisha Benjamin. Institutes of econorriics. 
 
 227p. p. Bost. 1889. Silver, Burdett & Cp. .I1.30. 
 
 Extremely concise and thorough in analysis. f»> , 
 
 Atkinson, Edward. Distribution of products; or, iThe 
 
 mechanism and the metaphysics of exchange. 303p. 
 
 D. N. Y. 1885. Putnam, $1.25. 
 
 Contents: What makes the rate of wages? What is a bank ? 
 The railway, the farmer and the public. 
 
 Baernreither, J. M. English associations of working- 
 men; tr. by Alice Taylor. 15+473P. O. Lond. 
 1889. Sonnenschein, 15s. 
 A late survey. 
 
 Bowen, Francis. American political economy. New 
 ed. D. N. Y. 1885. Scribner, $2.50. 
 
 An excellent moderate statement of the protection doctrine. 
 
 Brentano, Lujo. Relation of labor to the law of to day; 
 
 tr. with an introd. by Porter Sherman. 30op. D. 
 
 N. Y. 1891. Putnam, $1.75. 
 
 A late excellent book favoring trades unions. 
 E4i-Je92-soo 
 
2 UNIVERSITY EXTENSION SYLLABUS 
 
 Cairnes, John Elliot. Character and logical method of 
 
 political economy. Ed. 2. 2299. D. N. Y. 1875. 
 
 Harper, $1.50. 
 
 The best statement of method from the standpoint of the classi- 
 cal economists. 
 
 Some leading principles of political economy 
 
 newly expounded. 5o6p. O. N. Y. 1874. Har- 
 per, $2.50. 
 
 Specially valuable on wages. 
 
 Carey, Henry Charles. Manual of social science ; con- 
 densed from Carey's Principles of social science, by 
 Kate McKean, Phil. H. C. Baird & Co. $2.25. 
 
 Carpenter, Edward. Civilization, its causes and cure. 
 I56p. D. Lond. 1889. Sonnenschieh, 75c. (Social 
 science ser. vol. 2) 
 A late strong work. 
 
 Clowes, W. L. "Black America." N. Y. 1891. $1.50. 
 A late study by an English observer. 
 
 Cook, W. W. Trusts ; the recent combinations in 
 trade, their character, legality and mode of organi- 
 zation, and the rights, duties and liabilities of their 
 managers and certificate holders. 6^p. S. N. Y. 
 1888. L. K. Strouse & Co. pap. 50c. 
 
 Cunningham, William. Growth of English industry 
 and commerce during the early and middle ages. 
 Ed. 2 enl. i5+626p. O. Lond. 1890. Macmil- 
 •lan, $5. 
 
 Dexter, Seymour. Treatise on cooperative . savings 
 and loan associations. 299P. D. N. Y. 1889. Ap- 
 pleton, $1.25. 
 
 A thoroughly practical manual giving New York statutes. 
 
 Dugdale, Richard. The Jukes ; a study in crime, 
 paupersim and heredity. Fourth ed. with introd. by 
 
PRACTICAL ECONOMIC QUESTIONS 3 
 
 W: M. F. Round. I2ip. D. N. Y. 1888. Putnam, 
 $1. 
 
 A startling presentation of the effects of heredity. 
 
 Ellis, Havelock. The criminal. 8 + 337P. D. N. Y. 
 1890. Scribner, $1. (Contemporary science ser. 
 no. i) 
 
 Review of results thus far reached by students of criminal 
 anthropology in Italy, France, Germany, England and the 
 United States, with criticism. 
 
 Ely, Richard Theodore. Introduction to political 
 economy. 358?. O. N. Y. 1889. Hunt & Eaton, 
 
 $1. 
 
 — Problems of to day ; a discussion of protective 
 tariffs, taxation and monopolies. 222p. D. N. Y. 
 1888. Crowell, $1.50. 
 
 — Labor movement in America. 373p. D. N. Y. 
 
 1886. Crowell, $1.50. 
 
 A history which includes the platforms of the principal labor 
 organizations. 
 
 & Finley, J. H. Taxation in American states and 
 
 cities. 544p. D. N. Y. 1888. Crowell, $1.75. 
 Describes taxation as it is with suggestions for reform. 
 
 Farrer, Sir Thomas H. State in its relation to trade, 
 Ii + i8ip. D. Lond. 1883. Macmillan,$i. (English 
 citizen ser.) 
 Admirable. 
 
 Fawcett, Henry. Free trade and protection ; an in- 
 quiry into the causes which have retarded the gen- 
 eral adoption of free trade since its introduction into 
 England. Ed. 6. 16+173P. D. Lond. 1888. Mac- 
 millan, $1.25. 
 
 American arguments for protection are specially considered. 
 
4 UNIVERSITY EXTENSION SYLLABUS 
 
 George, Henry. Progress and poverty ; an inquiry into 
 the causes of industrial depressions and of the increase 
 of want with increase of wealth : the remedy. 2 5op. O. 
 N. Y. 1888. H : George & Co. pap. 35c, cl. $1. 
 
 Gilman, Nicholas Paine. Profit sharing between em- 
 ployer and employe ; a study in the evolution of the 
 wages system. 460P. O. Bost. 1889. Houghton, 
 Mifflin & Co. $1.75. 
 
 The one comprehensive book on this subject. 
 
 Hadley, Arthur Twining. Railroad transportation ; its 
 history and laws. 269P. D. N.Y. 1885. Putnam, $1.50. 
 THe standard book on this subject. 
 
 Howell, George. Conflicts of capital and labor, histor- 
 ically and economically considered. New ed. 64- 
 536p. D. Lond. 1890. Macmillan, $2.50. 
 
 Treats of British trades unions from the standpoint of a trades 
 unionist. 
 
 Trades unionism, new and old. 15+235P. D. 
 
 Lond. 1891. Methuen, 75c. 
 
 "Written in view of the later developments of trades unionism, 
 with especial reference to what may be termed the new de- 
 parture in the organization of labor." — Pref. 
 
 Hudson, James F. Railways and the republic. 489P. 
 O. N. Y. 1886. Harper, $2. 
 
 Suggests that railways be made public highways, rolling stock 
 to be supplied by private enterprise. The author would pro- 
 hibit pools. 
 
 Jevons, William Stanley. Money and the mechanism of 
 exchange. 23+350?. D. N.Y. 1879. Appleton, $1.75. 
 
 Best popular book for laying a basis of the generally accepted 
 doctrines. 
 
 State in relation to labor. i66p. D. Lond. 
 
 1882. Macmillan, $1. (English citizen ser.) 
 
PRACTICAL ECONOMIC QUESTIONS 5 
 
 Keynes, John Neville. Scope and method of political 
 economy. 14+.3S9P. ^- Lond. 1891. Macmillan, 
 
 $2. 
 
 The most complete statement of the nature and methods of 
 political economy. An excellent work. 
 
 Laughlin, James Laurence. History of bimetallism in 
 the United States. 258p. charts and tables, O. 
 N. Y. 1885. Appleton, $2.25. 
 Exhaustive. 
 
 Study of political economy. iS3p. S. N. Y. 
 
 1885. Appleton, $1. 
 
 Brings out the value of economics in discipline. 
 
 List, Friedrich. National system of political economy; 
 tr. by G. A. Matile with notes by Richelot and Col- 
 well. O. Phil. 1856. Lippincott, $2. 
 
 Unfinished work, First of German protectionists. 
 
 McCulloch, Oscar. Tribe of Ishmael ; a study in 
 
 social degradation. Ed. 4. 8p. O. Indianapolis, 
 
 1891. Charity organization society, 50c. 
 
 A brief but thorough study of heredity as a cause of pauperism; 
 a popular lecture, with diagram. 
 
 Marshall, Alfred. Principles of economics, vol. I. 
 28+7S4p. O. Lond. 1890. Macmillan, $3. 
 
 The most important work in English since J. S. Mill. To be 
 completed in a second volume. 
 
 Mill, John Stuart. Principles of political economy; 
 abridged with critical, bibliographical and explana- 
 tory notes and a sketch of the history of political 
 economy by J. L. Laughlin. 658p. maps and dia- 
 grams, O. N. Y. 1884. Appleton, $3.50. 
 
 Best abridgment of the chief modern English economist. 
 
6 UNIVERSITY EXTENSION SYLLABUS 
 
 Morrison, William Douglas. Crime and its causes. 
 [i+236p. O. Lend. 1891. Sonnenschien, 75c. (So- 
 cial science ser.) 
 
 A new thorough study. 
 
 Patten, Simon N. Premises of political economy ; a 
 reexamination of certain principles of economic 
 science. 244^. D. Phil. 1885. Lippincott, $1.50. 
 
 A radical and suggestive piece of criticism. Emphasizes 
 social causes. 
 
 Ricardo, David. Principles of political economy and 
 taxation ; ed. with introd. essay, notes and appen- 
 dices by E. C. K. Gonner. 62-f455p. D. Lond. 
 1891. Bell, $2. (Bohn's economic lib.) 
 
 Rogers, James Edwin Thorold. Economic interpreta- 
 tion of (English) history. 547p. O. N. Y, 1888. 
 Putnam, $3. 
 
 Showing the powerful influence economics have had in Englisli 
 histor)'. 
 
 Roscher, Wilhelm. Principles of political economy. 
 2 V. O. N. Y. 1878. Holt, $7.50. 
 
 Translation of the most popular German treatise. 
 
 Rylands, L. G. Crime, its causes and remedy. 264p. 
 Lond. 1889. Unwin, 6s. 
 
 Science economic discussion. D. N. Y. 1886. 50c. 
 
 Republished from papers contributed to Science, v. 7 & 8, by 
 Adams, Ely, Hadley, &c. 
 
 Sidgwick, Henry. Principles of political economy. 
 Ed. 2. 24-(-S95p. O. Lond. 1887. Macmillan, $1. 
 A late thorough, suggestive work. 
 
PRACTICAL ECONOMIC QUESTIONS 7 
 
 Smith, Richmond Mayo. Emigration and immigration. 
 3i6p. D. N. Y. 1890. Scribner, $1.50. 
 
 An historical and statistical survey. An able and suggestive 
 book, much the best on the subject. 
 
 Spencer, Herbert. Principles of sociology. 2 v. O. 
 N. Y. 1890. Appleton, $4. 
 
 vol. I Data and inductions of sociology; domestic institutions. 
 
 883p. 
 vol. 2 Ceremonial and political institutions. 667-|-26p. 
 
 Stebbins, Giles B. American protectionists' manual. 
 192P. D. Chic. 1888. C. H. Kerr & Co. 75c. pap. 
 4OC. 
 
 Contains many quotations from industrial witnesses, and com- 
 parative figures. 
 
 Sumner, William Graham. History of American cur- 
 rency ; with chapters on the English bank restrictions 
 and Austrian paper money. 390p. D. N. Y. 1878. 
 Holt, $3. 
 
 Deals with facts more than with theories. Apx. contains in 
 full English " Bullion report " of 1810. 
 
 Taussig, Frank William. Tariff history of the United 
 States, 1 789-1 888. 269P. D. N. Y. 1888. Putnam, 
 $1.25. (Questions of the day, no. 47) 
 
 Valuable record of facts. Author a tariff reformer. Best 
 general history of our tariff. 
 
 Taylor, Sedley. Profit sharing between capital and 
 labor. 13+170P. D. N. Y. 1886. Fitzgerald, pap. 
 15c. 
 
 Thompson, Robert Ellis. Elements of political 
 economy. 419P. D. Phil. 1882. Porter, $1.50. 
 
8 UNIVERSITY EXTENSION SYLLABUS 
 
 Wagner, Adolf. Finanzwissenschaft. 3 v. Leipzig, 
 
 1883-90. C. P. Winter. 
 
 The most comprehensive work on taxation in any language. 
 Uncompleted. 
 
 Walker, Francis Amasa. Land and its rent. 220p 
 S. Bost. 1883. Little, Brown & Co. 75c. 
 
 The best American book on the subject from the conservative 
 standpoint. 
 
 Money. 55op. O. N. Y. 1878. Holt, $2. 
 
 The standard American treatise. States and impartially ex- 
 amines the various theories of money. 
 
 Political economy. 537p. O. N. Y. 1887. Holt, 
 
 $2. (American science sen — Advanced course) 
 
 Specially valuable in its elucidations of the questions of land 
 and wages. 
 
 Wages question ; a treatise on wages and the 
 
 wages receiving class. 428p. O. N. Y. 1876. Holt, 
 $2. 
 
 Discriminates real from nominal wages. Takes account of 
 sentiment as afifecting economic forces. 
 
 Winter, Alexander. New York state reformatory in 
 Elmira ; with a pref by Havelock Ellis. io+i72p. 
 D. Lond. 1 891. Sonnenschein, 75c. (Social science 
 sen vol. 19) 
 
 An excellent account of this best of all reformatories. 
 
 Lecture i 
 
 At the close of each lecture there will be a free conference on the 
 subject of the lecture, at which members of the class may ask ques- 
 tions of the lecturer, and bring forward their own views. 
 
 To aid the students in securing accurate notes of the lectures, the 
 lecturer will distribute at the close of each meeting a printed syllabus 
 of the lecture of the evening, to which will be added a number of 
 
PRACTICAL ECONOMIC QUESTIONS 9 
 
 questions or exercises for written work. Answers to two or more of 
 these may be sent by mail to the lecturer, so as to reach him not less 
 than 48 hours before the succeeding lecture. 
 
 The special class, consisting of those that do the written work, will 
 meet 45 minutes before the beginning of the regular lecture, to receive 
 hack papers, get special information regarding reading, have difficul- 
 ties made clear, etc. 
 
 NATURE OF POLITICAL ECONOMY 
 
 1 Why do we study political economy ? 
 
 Marshall. Principles of economics, vol. i, ch. i. 
 
 Laughlin. Study of political economy. 
 
 Ely. Political economy, pt 1, ch. 1-3. 
 
 Walker. Political economy, ch. i. 
 
 Bowen. American political economy, ch. i. 
 
 2 Nature and development of industrial society 
 
 Marshall. Principles of economics, ch. 2-3. 
 
 Andrews. Institutes of economics; introduction. 
 
 Ely. Political economy, pt i. 
 
 Cunningham. Growth of English industry and commerce. 
 
 3 Definition of political economy 
 
 Marshall. Principles of economics, ch. i. 
 
 Adams. Outlines of lectures on political economy, § 14. 
 
 Walker. Political economy, ch. 1. 
 
 Roscher. Principles of political economy, vol. i, ch. 3. 
 
 4 Method of economic study 
 
 Keynes. Scope and method of political economy. 
 
 Science economic discussion. 
 
 Dunbar, C: F. Reaction in political economy (see Quar. jour. 
 
 econ. I : 1-27). 
 Cairnes. Logical method of political economy. 
 Andrews. Institutes of economics, ch. i. 
 Marshall. Principles of economics, ch. 4-8. 
 Walker. Political economy, ch. i. 
 Adams. Outlines of lectures, pt 1-2. 
 Sidgwick. Principles of political economy, ch. 3. 
 Nasse, E. Economic movement in Germany {see Quar. jour. 
 
 econ. 1:498-506.) 
 2 
 
10 UNIVERSITY EXTENSION SYLLABUS 
 
 The books cited are all standard works and will be 
 useful for nearly all the lectures. The bibliography is 
 by no means complete but rather suggestive for those 
 not familiar with the subjects treated. For those who 
 read German, the works of SchSnberg, Wagner and 
 Cohn are recommended ; for those who read French 
 those of Cherbuliez, Courcelle-Seneuil and Gamier. 
 The full title of the books is given only when the first 
 reference is made. Later a short title is used. 
 
 It is not expected that each student will read all the 
 references. Several have been suggested under each 
 topic, in order that the student may use the one that 
 is most convenient for him, and so far as possible they 
 have been arranged in order of fitness for use of exten- 
 sion students. Each student should do as much read- 
 ing as possible, and come to the lecture with some 
 fairly deiined opinion on each topic suggested, in order 
 that he may take a more intelligent part in the dis- 
 cussions at the close of the lecture. 
 
 Lecture 2 
 THE MONEY QUESTION 
 
 1 What is money ? Its origin and nature 
 
 Walker. Money, ch. 1-2. 
 
 Jevons. Money and the mechanism of exchange, ch. 1-5. 
 Carey, Social science (McKean's abridgment), ch. 23. 
 Bowen. ch, 12. 
 
 2 Normal relation of government to money 
 
 Andrews. § 75. 
 Bowen. ch. 12. 
 
 3 Quantity of money needed 
 
 Walker. Money, ch. 3. 
 
 Mill. Political economy (Laughlin's ed.), bk. 3, 
 
PRACTICAL ECONOMIC QUESTIONS II 
 
 4 Territorial distribution of money 
 
 Walker. Money, ch. 3. 
 
 Political economy, ch. 3. 
 
 5 Single or double standard ? 
 
 Laughlin. Bimetallism in U. S. 
 
 Taussig. Silver situation in the U. S. (see Quar. jour. econ. 
 
 4: 291-315, Ap 90). 
 Silver situation in the U. S. {see Amer. econ. ass'n. 
 
 publications, vol. 7, no. I, Ja. '92.) 
 Jevons. Silver question (see Jour. soc. sci. 1879, no. 9, 
 
 p. 14-20). 
 Nourse, B. F. Silver question {see Jour. soc. sci. 1879, no. g, 
 
 p. 21-43). 
 Sumner. History of American currency. 
 
 6 Free coinage of silver in the U. S. to-day 
 
 Taussig. (As above under 5.) 
 Laughlin. Bimetallism in U. S. 
 
 Fairchild, C: S. U. S. and silver (j^^ Forum, 11 : 550-5S, Jl 90) 
 Coe, G: S. Why the silver law should be repealed {see Forunci^ 
 12:611-13, Ja 92). 
 
 7 Inconvertible paper money 
 
 Walker. Money, pt 2. 
 
 Rogers. Economic interpretation of history, ch. 10. 
 
 The standard works cited cover the whole subject. 
 Many more articles in the current magazines can be 
 found on the political phases of the question by con- 
 sulting Poole's Index to periodical literature and the 
 later files of the periodicals. 
 
 Lecture 3 
 THE RENT PROBLEM 
 
 I Factors in production 
 
 Marshall, bk 4-6. 
 
 Walker. Political economy, pt 2. 
 
 Andrews, pt i. 
 
12 UNIVERSITY EXTENSION SYLLABUS 
 
 2 Parties to the distribution of the product of indus- 
 
 try- 
 Marshall, bk 7. 
 
 Walker. Political economy, pt 4, ch. i. 
 Andrews, pt i. 
 
 3 Origin of rent 
 
 Ricardo. Political economy, ch. 2. 
 Walker. Political economy, pt 4, ch. 2. 
 Andrews, pt 4, ch. 2. 
 
 4 Law of rent. What fixes its amount ? 
 
 Ricardo. ch. 2. 
 
 Sidgwick. bk i, ch. 7. 
 
 Care)'. (McKean's abridgment) ch. 35. 
 
 Patten. Premises of political economy, ch. i. 
 
 Andrews, pt 4, ch. 2. 
 
 5 Relation of rent to price of product ; to wages 
 
 Marshall, bk 6. 
 
 Walker. Political economy, pt 4, ch. 2. 
 
 Ricardo. Political economy, ch. 2. 
 
 6 Effect of social progress on rent 
 
 Marshall, bk 7, ch. 13. 
 
 Carey, (McKean's abridgment) ch. 35. 
 
 7 Henry George and land nationalization 
 
 George. Progress and poverty. 
 
 Walker. Land and its rent. 
 
 Single tax debate (see Jour. soc. sci. i8go, no. 27, p. 1^124, 
 George, Seligman and others). 
 
 Ely. Taxation in American states and cities, pt 3, ch. 4. 
 
 — Problems of to-day, ch. 25-26. 
 
 Consult also Poole's Index and later files of political periodi- 
 cals. 
 
PRACTICAL ECONOMIC QUESTIONS 1 3 
 
 Lecture 4 
 MONOPOLIES 
 
 I Natural monopolies 
 
 a Gold, salt, etc. 
 
 Wagner. Finanzwissenschaft; — and other European writers 
 on finance. 
 
 Ely. Problems of to-day, ch. 17-19. 
 b Railroads, telegraphs. 
 
 James, E. J. Railway question {see Amer. econ. ass'n. Pub- 
 lications, vol. 2, no. 3). 
 
 Hadley. Railroad transportation. 
 
 Seligman. Railway tariffs and interstate commerce law {see 
 Pol. sci. quar. 2: 223-64, 364-413). 
 
 Hudson. Railways and the republic. 
 
 Ely. Problems of to-daj-, ch. 22-23. 
 C Municipal. Water, gas, street railways, etc. 
 
 Adams, H: C.,and others. Relation of modern municipali- 
 ties to ^«rt«-public works, (see Amer. econ. ass'n. Pub- 
 lications, vol. 2, no. 6.) 
 
 James, E. J. Relation of modern municipality to the gas 
 supply (see Amer. econ. ass'n. Publications, vol. i, no. 2-3). 
 
 Bemis, E: W. Municipal ownership of gas in the United 
 States, (.\raer. econ. ass'n. Publications, vol. 6, no. 4-5.) 
 
 Bulletin of U. S. census of i8gi on street railways. 
 
 Ely. Problems of to-day, ch. 20-21, 
 
 2 Capitalistic monopolies 
 
 a Trusts. 
 
 Cook. Trusts. 
 
 Reports of N. Y. senate, 1888; Congressional committee on 
 
 manufactures, 1888; Canadian house of representatives, 
 
 1888. 
 
 Gunton. Economic and social aspect of trusts (see Pol. sci. 
 
 quar. 3:385-408, S 88). 
 
 Jenks, J. W. Trusts in the United States (see Economic jour. 
 
 5: 70-100, Mr. '92). 
 Dwight. Legality of trusts (see Pol. sci. quar. 3: 592, D '88). 
 
14 UNIVERSITY EXTENSION SYLLABUS 
 
 b Corporations. 
 As above under <j. 
 
 3 Advantages and disadvantages of great combina- 
 
 tions of capital 
 
 As above under 2. 
 
 4 Legislative action regarding monopolies 
 
 James and Adams as above and references under 2 a. 
 
 Swift, M. I. What shall be done with trusts {see Andover 
 
 review, 10: 109-26). 
 Bankers' magazine (New York), October '88. 
 Consult Poole's Index for many magazine articles. 
 
 Lecture 5 
 THE WAGES QUESTION 
 
 1 Factors determining the rate of wages 
 
 Walker. Wages question. 
 A full discussion of the whole subject. See also several articles by 
 Walker, Clark and McVane in the last two volumes of the Quarterly 
 journal of economics. 
 
 Sidgwick. Political economy, bk 2, ch. 8-12. 
 Atkinson. Distribution of products, 
 
 2 Highest and lowest limits of wages 
 
 Walker. Wages question, ch. 14-16, 19. 
 
 Brentano. Relation of labor to the law of to-day, bk 2, ch. 7-8. 
 
 Andrews. Institutes of economics, pt 4, ch. 4. 
 
 Ricardo. Political economy, ch. 5. 
 
 3 Interest of society in the rate of wages 
 
 Brentano. bk 2, ch. 12. 
 
 Journal of social science, 1891. 
 
 Andrews, pt 4, ch. 4. 
 
 Walker. Wages question and Political economy, 
 
 Ely. Labor movement. 
 
 4 Influence of trades unions on wages 
 
 Journal of social science, 1891. 
 Sidgwick. bk 2, ch. 10. 
 Brentano. bk 2, ch. 6-8. 
 EIv. Labor movement. 
 
PRACTICAL ECONOMIC QUESTIONS 1$ 
 
 Labor legislation 
 
 Journal of social science, i8gi. 
 
 Jevons. State in relation to labor. 
 
 Brentano, bk 2, ch. g-io. 
 
 Howell. Conflicts of labor and capital, ch. ii. 
 
 Baernreither. English associations of workingmen, chi 4. 
 
 Consult Poole's Index for magazine articles. 
 
 Lecture 6 
 COOPERATION AND PROFIT SHARING 
 
 I Significance of cooperation 
 
 Walker. Political economy, pt 6, § 2. 
 
 Cairnes. Leading principles, ch. 5. 
 
 Howell. Conflicts of labor and capital, ch. 13. 
 
 2 Distributive cooperation 
 
 Bemis, E: W. Cooperation in New England (sec Amer. econ. 
 
 ass'n. Publications, vol. i, no. 5). 
 Warner, A. G. Three phases of cooperation in the west [see 
 
 Amer. econ. ass'n. Publications, vol. 2, no. i). 
 History of cooperation in the U. S. (j« Johns Hopkins Univ. 
 
 studies in hist, and pol. sci., vol. b). 
 
 3 Productive cooperation 
 
 History of cooperation in the U. S. (in J. H, U. studies in hist. 
 
 and pol. sci. vol. 6). 
 Shaw, Albert. Cooperation in a western city (see Amer. econ. 
 
 ass'n. Publications, vol. i, no. 4). 
 Bemis, E. W. (As above under 2 a.) 
 Howell. Conflicts of labor and capital, ch. la. 
 
 a Building and loan associations 
 
 Dexter. Cooperative savings and loan associations. 
 Journal of social science, 1888, no. 25. 
 
l6 UNIVERSITY EXTENSION SYLLABUS 
 
 4 Profit-sharing. Its nature 
 
 Oilman. Profit-sharing. 
 Taylor, Sedley. Profit-sharing. 
 Journal of social science, 18S7, no. 23, p. 25-67. 
 a Examples and methods. 
 
 Articles in Chicago Daily news, 1889. 
 Oilman. Profit-sharing. 
 
 5 Future of cooperation and profit-sharing ; and 
 
 adaptability for special industries 
 
 Oilman, ch. 10. 
 
 Walker. Political economy, and other general works on 
 
 economics. 
 Consult also Poole's Index to periodical literature. 
 
 Lecture 7 
 EMIGRATION AND IMMIGRATION 
 
 X The good of society the standpoint of discussion 
 
 Smith. Emigration and immigration. 
 
 The best authority on the whole subject. 
 Smith, R. M. Control of immigration {see Pol. sci. quar. 
 
 3 : 46-77, 197-225, 409-24). 
 Schuyler, Eugene. Italian immigration into the U. S. {see Pol. 
 
 sci. quar. 4: 480-95). 
 Reports of the consular officers of the United States, 1885-18S6. 
 
 2 History of immigration into the United States 
 
 Li^geard, Armand. Immigration into the U. S. {see Statistical 
 
 society. Journal, 47: 496-516). 
 Census of the United States, 1850-90. 
 See also under i. 
 
 3 Forces of assimilation 
 
 Boyesen, H. H. Dangers of unrestricted immigration {sei 
 
 Forum, 3: 532-42). 
 See also under i. 
 
PRACTICAL ECONOMIC QUESTIONS I7 
 
 4 Politicai effects of immigration 
 
 Boyesen, H. H. (As above under 3). 
 
 Coxe, A. C. Government by aliens [see Forum 7: 597-608). 
 
 Round, W: M. F. Immigration and crime («^ Forum 8 1428- 
 
 40). 
 Altgeld, J: P. Immigrant's answer (see Forum 8:684-96). 
 Berais, E: W. Restriction of immigration (see Andover rev. 
 
 9: 251-64). 
 Hunger, T. T. Immigration by passport (see Century 35: 791- 
 
 99)- 
 Powderly, T. V. A menacing irruption, (see North Amer 
 rev. 147 : 165-74). 
 
 5 Economic effects 
 
 Powers, F: P. Occupations of immigrants (see Quar. jour. 
 
 econ. 2: 223-28). 
 In England. 
 
 Fox, S. N. Pauper invasion of foreigners (see Contemporary 
 review, 53: 855-67). 
 In France. 
 
 Spectator, 61: 1350. 
 
 See also under i and 4. 
 
 6 Social effects 
 
 See under i, 4, 5. 
 
 7 Relation of the state to emigration and immigra- 
 
 tion 
 
 See specially Smith, Emigration and immigration. 
 
 Many other reports and articles in reports of bureaus of labor 
 statistics, reports of the Conference of Charities and Correc- 
 tions, etc. 
 
 Lecture 8 
 THE PROTECTIVE TARIFF 
 
 I Duty of the state toward industry 
 
 Adams, H: C. Relation of the state to industrial action, 
 (Amer. econ. ass'n. Publications, vol. i, no. 6.) 
 
 3 
 
1 8 UNIVERSITY EXTENSION SYLLABUS 
 
 Science economic discussion. 
 Sidgwick. Political econom)-, bk 3, ch. 3-4. 
 Jevons. State in relation to labor. 
 Farrer. State in relation to trade. 
 
 2 A protective in distinction from a revenue tariff 
 
 Fawcett. Free trade and protection, ch. 2. 
 Pulsford, Edward. An Australian lesson (see 19th century, 
 24: 393-409)- 
 
 3 On what classes of goods may a protective duty 
 
 be levied ? 
 
 See under 5. 
 
 4 Who pays the protective tax ? 
 
 Bowen. American political economy, ch. ao. 
 Sidgwick. Political economy, bk 3, ch. 5. 
 Stebbins. American protectionists' manual, ch. 6. 
 
 5 Development of natural facilities and of indus- 
 
 tries 
 
 List. National system of political economy, bk 2. 
 
 Carey. (McKean's abridgment.) 
 
 Thompson. Political economy. 
 
 Stebbins. American protectionists' manual, 
 
 6 " Infant industries " argument 
 
 Taussig. Tariif history of the United States. 
 Sidgwick. Political economy, bk 3, ch. 5. 
 
 7 How high should a protective tariff be and for 
 
 how long continued ? 
 
 See under 5 and 6. 
 
 8 Protective tariff and wages 
 
 Gladstone, W: E. Free trade (see North Am. rev. 150: 1-27). 
 Blaine, J. G. Protection (see North Am. rev. 150: 27-54). 
 Powers, F: P. Australian tariff experiment (see Quar. jour. 
 
 econ. 3: 87-98). 
 Thompson. Political economy, § 224. 
 Stebbins. Protectionists' manual, ch. 10. 
 
PRACTICAL ECONOMIC QUESTIONS I9 
 
 9 Protective tariff and politics 
 
 Taussig. Tariff history of the United States. 
 a Is Congress able properly to adjust duties? 
 
 See Poole's Index for magazine articles. 
 b Tariff in elections. 
 
 See g a 
 
 10 General conclusion 
 
 Lecture 9 
 THE RACE PROBLEM 
 
 1 Nature of the problem 
 
 Bryce, James. Thoughts on the negro problem (see North 
 
 Amer. rev. 152: 641-60, D 91). 
 Excellent on the whole subject. 
 Cable, G: W. Freedman's case in equity {see Century, 7: 
 
 409-18). 
 Grady, H: W. In plain black and white ; a reply to Mr Cable 
 
 (j^.f Century, 7: 909-17). 
 
 2 Statement of historic facts 
 
 Clowes, W. L. Black America. 
 
 Craighead, J. B. Future of the negro in the south {see Pop. 
 
 sci. mo. 26; 39-46). 
 Gannett, Henry. Are we to become africanized ? {see Pop. sci. 
 
 mo. 27: 145-65). 
 Keating, J. M. 20 years of negro education {see Pop. sci. mo. 
 
 28: 24-37).' 
 See also under i 
 
 3 Present social conditions 
 
 Clowes, W. L. Black America. 
 
 Census reports of 1870, 1880, 1890, vol. i on Population. 
 
 Price, J. C. Does the negro seek social equality ? {see Forum 
 
 10: 556-64). 
 See also under 2. 
 
20 UNIVERSITY EXTENSION SYLLABUS 
 
 4 Present political conditions 
 
 Census reports as above. 
 
 Mayo, A. D. Progress of the negro {see Forum lo: 335-45). 
 
 Tourg6e, A. W. Right to vote {see Forum 9: 78-92). 
 
 North American review, vol. 147, Oct. 1888. 
 
 See also under i and 3. 
 
 5 Remedies proposed 
 
 a Intermarriage. 
 
 Rawlinson, George. Duties of higher toward lower races. 
 
 {see Princeton rev., Nov.'r878, p. 804-47). 
 Gardiner, C. A. Race problem in the U. S. {see Jour. soc. 
 sci. 1883, no. 18, p. 266-75). 
 
 b Congressional interference to raise social or political 
 standard. 
 Tourgfie, A. W. (As above under 4.) 
 Morgan, J. T. Federal control of elections, {see Forum 10: 
 
 23-36). 
 North Am. rev., vol. 147, Oct. 'S8. 
 c Colonization. 
 
 Clowes, W. L. Black America. 
 
 Gilliam, E. W. African in the U. S. {see Pop. sci. mo. 22: 
 433-44, F 83). 
 
 d Education. 
 As under 2. 
 
 Keating, J. M. (As above under 2.) 
 Dudley, T. U. How shall we help the negro? (j-« Century, 
 
 8: 273-80.) 
 Shaler, N. S. Negro problem (jf« Atlantic mo., 54: 696-709). 
 
 6 Measures to recommend 
 
 See Poole's Index for other articles. 
 
 Lecture 10 
 PRINCIPLES OF SOCIAL REFORM 
 
 I Nature of society 
 
 Spencer. Principles of sociology, pt i, ch. 1-4, 27; pt 2, ch. 1-2. 
 
PRACTICAL ECONOMIC QUESTIONS 21 
 
 2 What is a social evil? 
 
 Spencer. Sociology, pt 3, ch. 1-2. 
 Carpenter. Civilization, ch. i, 4, 6, 
 
 3 Reform deals with individuals 
 
 Morrison. Crime and its causes. 
 Rylands. Crime; its causes and remedy 
 Winter. Elmira reformatory. 
 
 4 Heredity. How its influence may be modified 
 
 Dugdale. The Jukes. 
 McCulloch. Tribe of Ishmael. 
 Ellis. The criminal. 
 
 5 Environment may be modified 
 
 Spencer. Sociology, pt i, ch. 2-4; pt 2, ch. 11; pt 5, ch. 5. 
 
 Papers in penology published by Elmira reformatory. 
 a For individuals. 
 
 Morrison. Crime and its causes. 
 
 Rylands. Crime, ch. 5. ^ 
 
 Winter. Elmira reformatory. 
 b By individuals for their own benefit. 
 
 See many short articles in the Summary, ihe paper published 
 at the Elmira reformatory. 
 
 See also 5 a. 
 
 6 Responsibility of mdividuals for social evils 
 
 Ellis. The criminal. 
 
 7 Our duty regarding social evils 
 
Part 2 Syllabus 
 
 Lecture i 
 
 NATURE OF POLITICAL ECONOMY 
 
 I Why we study political economy 
 
 a To learn how to do wisely our share in governing. 
 The economist knows what is desirable for the 
 people along industrial lines ; the statesman sees 
 how much of this it is possible to obtain and how 
 to -lead the people toward this attainment. 
 
 " The science of economics has to-day the im- 
 portant task of working directly for practical life; 
 and on the other hand not only the statesman, but 
 also the merchant, the manufacturer and the farmer 
 are in duty bound to take notice of economic science, 
 and to form their own independent judgments on 
 the economic problems of the day, because almost 
 daily they are compelled to give their opinions, and 
 votes, in political and social life, on these most im- 
 portant economic questions." — Conrad. 
 
 b To aid in business life. 
 
 A business man has to deal with economic 
 facts, but may be successful without being a 
 trained economist. A driver on an electric car 
 must know some principles of electricity, but. need 
 not be a scientific electrician. An economist can 
 not know too much about business, for he has to 
 do with business principles which are drawn from 
 business facts. 
 
24 UNIVERSITY EXTENSION SYLLABUS 
 
 c To help us in social and home life, and keep us from 
 mistakes. 
 
 " Whoever can teach the masses of people how 
 to get five cents' worth a day more comfort or 
 force out of the food which each one consumes, will 
 add to their productive power what would equal a 
 thousand million dollars a year." — Quoted in An- 
 drews. How much of our so-called charity is 
 cruelty ! A great fire is rarely a social blessing, 
 though it does make work. If the best goods are 
 the cheapest, the most expensive may not be. We 
 fail to realize fully our interdependence upon one 
 another. 
 
 d To gain interesting knowledge and valuable mental 
 discipline. 
 
 2 Nature of industrial society- 
 
 Industrial society — the world of business — is a great 
 social organism, a structure of interdependent parts, 
 each working for all, and all for each. Consider how 
 many people have contributed their efforts to produce 
 the things that satisfy your needs for one day ; where 
 they live; in what ways they have worked; what their 
 motives have been; why you have benefited by their 
 work. There can be no society without this harmoni- 
 ous cooperation ; no complete man outside of society. 
 The organism is very complex; its study must be 
 difficult. 
 
 3 Definition of political economy 
 
 It is the task of political economy to find out the prin- 
 ciples that guide this industrial organism in its working. 
 
 "Political economy, or economics, is the science of 
 wealth." "Political economy has to do with noth- 
 ing but wealth." — Walker. 
 
 " Political economy may be properly defined as the 
 science of industrial society. Its purpose as an ana- 
 
NATURE OF POLITICAL ECONOMY 25 
 
 lytic science is to explain the industrial actions of 
 men. Its purpose as a constructive science is to dis- 
 cover a scientific and rational basis for the formation 
 and government of industrial society." — Adams. 
 
 " Political economy, or economics, is a study of man's 
 actions in the ordinary business of life; it inquires 
 how he gets his income and how he uses it." 
 — Marshall. 
 
 It seems wise to keep prominently in mind man in so- 
 ciety as the standpoint for our investigations because 
 (i) This standpoint calls special attention to the 
 forces at work in society; and (2) This standpoint 
 shows us best the proper relations of economic theory 
 and practice, man's actions, practice, often forming a 
 premise from which we reason to a principle, theory ; 
 as well as the theory furnishing a basis for urac- 
 tice. 
 
 Development of economic science 
 
 In ancient times, industrial society was so organized that 
 there could be no developed economic science in 
 the modern sense. 
 
 In nth and 12th centuries the development of cities, 
 guilds and commerce started more thorough econ- 
 omic study. 
 
 In i6th and 17th centuries the mercantilists taught. (Col- 
 bert, Petty, et al. ) Exaggerated ideas regarding the 
 importance of money, foreign trade, etc. Relied 
 too much on state interference. 
 
 In i8th century physiocrats (Quesnay, Gournay, Turgot, 
 et al.) taught freedom of trade, single tax on land, 
 etc. 
 
 1776 Adam Smith's Wealth of nations -pubXhhtA. His 
 English followers and modifiers, especially Ricardo, 
 Malthus, Senior, Mill, etc., the so-called orthodox 
 or classical school. 
 
26 UNIVERSITY EXTENSION SYLLABUS 
 
 The main premises for their reasoning are: 
 
 a A few common traits of human nature, especially 
 man's desire for wealth and his dislike for labor. 
 
 b Each man will follow his own interest, and the inter- 
 est of all will thus be secured. 
 
 c External nature, especially well known facts regarding 
 grain production. 
 
 d Free competition is generally assumed as the condi- 
 tion of business. Other motives and conditions 
 are excluded in reasoning, and the method of 
 reasoning is mainly deductive from the above 
 premises. 
 
 The principles reached were sometimes called 
 natural laws, and were considered to be universal 
 in their application. 
 
 The historical school, starting in Germany a little 
 before the middle of this century (Roscher, Knies, 
 Hildebrand) takes for its premises all facts regard- 
 ing man and nature, as far as is possible ; declares 
 that there are no natural laws in industrial society, 
 universal in application; but hopes to find some few 
 general principles that will be of wide application. 
 The main work at present is to get facts, historical 
 and statistical, as a basis for inductive reasoning to 
 principles of wide application. 
 
 Most of the leading economists of to-day occupy 
 a middle ground in doctrine and method. It is 
 recognized that the desire for wealth is a chief mo- 
 tive, but others must be taken into account. Even 
 nature gives us no fixed premise, for man getting 
 command over nature brings about changes. We 
 need also to study the legal structure of society, the 
 artificial conditionings of society. " Land is a 
 natural fact; private property in land a legal fact;" 
 both are economic facts. 
 
 We must seek principles, but we may also study 
 
NATURE OF POLITICAL ECONOMY 2/ 
 
 how to modify conditions. Society is not like an 
 animal ; it is an organism that is consciously modi- 
 fying its own structure and conditions. 
 
 We need in our studies the individual stand- 
 point, the national standpoint, the cosmopolitan 
 standpoint. 
 
 5 Hindrances and aids to the study of economics 
 
 Among hindrances may be mentioned the many premises 
 and their complicated nature, the difficulty of employ- 
 ing, in a fixed scientific sense, terms which are in 
 every day use with varied meanings, — wealth, value, 
 price, etc. ; the wide-spread conviction that, because 
 economics deals with every day life, our every day 
 experience is enough to enable us to solve the prob- 
 lems of econftnics, etc. 
 
 It is an advantage that every one is interested in the 
 problems of economics, because they concern every 
 one's business and life; that from our consciousness 
 of our own motives and our knowledge of our own 
 business we are able to know without study some of 
 our premises, etc. 
 
 Topics for papers 
 
 1 How far may a man be a good banker, and still not 
 understand the science of money. 
 
 2 Mention three mistakes in methods of life or in eco- 
 nomic belief that are common among the uneducated, but 
 that a knowledge of economics would prevent . 
 
 3 Compare in detail, as regards their relative excellence, 
 the definitions of political economy given by Walker and 
 Marshall. 
 
 4 If an economist could demonstrate beyond question 
 that paper money was the best currency for the United 
 States, would congress be justified in any case in refusing to 
 pass a law to make paper money our currency ? Give full 
 reasons. 
 
28 UNIVERSITY EXTENSION SYLLABUS 
 
 5 Defend the orthodox school of political economy, as 
 regards their method of reasoning and investigation. 
 
 6 Give examples of man's action upon nature within the 
 last 50 years that would change our results in reasoning upon 
 any economic question. 
 
Lecture 2 
 
 THE MONEY QUESTION 
 
 1 Origin and nature of money 
 
 The earliest form of trading is barter, i. e., the ex- 
 change of one commodity directly for another com- 
 modity that one wishes to use. As economic society 
 develops and exchanges increase in number, the diffi- 
 culty for a buyer of finding a person who has the de- 
 sired object that he wishes to sell, and for a seller of 
 finding a purchaser who can give in exchange for one's 
 goods an exact equivalent of some desired object, 
 leads practically to the adoption of some one article 
 of general desirability as a medium by which ex- 
 changes may be readily effected. This commodity 
 differs from others specially in this, that it is gener- 
 ally desired, so that any one is willing to take it, feel- 
 ing sure that he can readily dispose of it when he 
 wishes to make purchases. 
 
 To do its work well, it must, of course, be in some 
 form that may be taken as a standard, and that can 
 be used as a measure by which the values of other 
 commodities are estimated. 
 
 As business becomes complex, and the credit sys- 
 tem is established, this generally used commodity 
 ■ will naturally be the one in the terms of which con- 
 tracts for deferred payments will be drawn. 
 
 To perform these functions to the best advantage, 
 this commodity must have the properties of general 
 
30 UNIVERSITY EXTENSION SYLLABUS 
 
 acceptability, portability, durability, divisibility, sta- 
 bility of value, cognizability, homogeneity. Gold 
 and silver have these properties to a greater degree 
 than any other known commodity. 
 
 This instrument by which exchanges are effected, 
 one of the most important instruments for saving 
 labor, is called money. 
 
 2 Normal relation of government to money 
 
 For convenience of its citizens the government may 
 well impress its stamp on coins, thus practically cer- 
 tifying to their weight and fineness. So, to insure 
 business convenience, it may well make some stand- 
 ard coin a legal tender for the payment of debts. 
 
 " A standard unit of value must always be a fixed 
 quantity of a fixed quality of a specific commodity." 
 — Adams. 
 
 This government stamp certifies to value ; it does not 
 give value, as experience shows. Again, experience 
 shows that a legal tender act, irrespective of quantity 
 of issue, can not sustain value of light coin or of 
 paper money. 
 
 3 Quantity of money needed 
 
 Enough money must be on hand in a country to effect 
 the cash payments due at any one time. This 
 amount varies with the season, the method of doing 
 business, and other circumstances. The value of the 
 money unit varies inversely as the amount in the 
 country, and consequently inversely as general prices. 
 
 4 Territorial distribution of money 
 
 If money is good, that is in coin of full weight or m 
 some form exchangeable on demand into such coin, 
 it will be distribated between exchanging countries 
 freely to meet the needs of business. A surplus of 
 
THE MONEY QUESTION 3 1 
 
 money in any country, by increasing prices, will check 
 the foreign demand for goods while increasing the 
 home demand for foreign goods, thus creating a de- 
 mand for money abroad. Too small an amount in 
 a country will produce the opposite effects, and thus 
 in time secure the extra amount needed. Bad money 
 always drives out good money. — Gresham's law. 
 
 5 Single or double standard ? 
 
 a A single standard has the advantage of simplicity. 
 The disadvantage of the single gold standard is 
 that, in the opinion of many excellent authorities, 
 gold is increasing less rapidly than the demand for 
 it, so that its value is constantly rising, thus, by 
 lowering prices, exerting a bad effect on business. 
 
 b With a double standard, if the ratio of values can be 
 maintained, the fluctuation of the standards in 
 value will be much less. If many countries unite, 
 the ratio could probably be maintained. 
 
 As yet, the ratio never has been maintained for a 
 long period, and monometallists think it can not be 
 maintained. 
 
 6 Free coinage of silver in the U. S. to-day 
 
 With the continued large-purchase of silver, and use of 
 silver in paying dues to the government, it seems but a 
 question of time when the supply of gold in the U. S. 
 treasury will be so small that it will have to make 
 all its payments in silver. If this happens, the 
 market value of the silver dollar would probably fall 
 to the bullion value, and instead of a bimetallic 
 currency we should have, or shall have, a single 
 silver standard, in fact, whatever the law may be. 
 
 7 Inconvertible paper money 
 
 a If strictly limited in amount to business needs, it may 
 not depreciate. 
 
32 UNIVERSITY EXTENSION SYLLABUS 
 
 b The interest of debtors and the exigencies of the 
 treasury in time of need are powerful influences 
 tending to overissue, and in practice, an overissue 
 is found to be almost inevitable. 
 
 Topics for papers 
 
 1 May any commodity become money without the sanc- 
 tion of law ? Reasons for answer. 
 
 2 Explain why our silver dollars pass in the United 
 States as equal to gold. 
 
 3 Why is not the argument in favor of a double standard 
 even stronger in favor of a quintuple standard ? 
 
 4 Explain the territorial distribution of money of full 
 bullion value. 
 
Lecture 3 
 
 THE RENT PROBLEM 
 
 1 Factors in production 
 
 If we consider the process ot production of any com- 
 modity, for example, a pair of shoes, we at once see 
 that natural forces, labor and capital (tools) have con- 
 tributed as factors to its production. Some econo- 
 mists think that the work of the business manager, 
 the organizer of business, the entrepreneur, is so 
 different in character from that of the ordinary work- 
 man and that of the capitalist that the business man- 
 ager as such is better considered as a fourth factor in 
 the production of wealth. 
 
 2 Parties to the distribution of the product of 
 
 industry 
 
 If these factors unite to make a product, it seems but 
 right that this product be divided among them in pro- 
 portion to the service that each has rendered, as far 
 as this proportion can be ascertained. 
 
 It is so difficult to discover this just proportion that the 
 classes representing these factors are apt to disagree, 
 and from this arise in good part the discords of 
 society. 
 
 This distribution, too, it is to be noted, is a matter of 
 human institution solely, and may vary in its prin- 
 ciples in different ages and countries; hence the 
 method and results of the distribution of the product 
 of human industry in any society form a fair criterion 
 of the character of that society. 
 
 One man may, of course, represent all the parties in 
 distribution, but for the sake of clearness in discus- 
 sion, the parties must be distinguished. 
 
 Eaic-Fg2-5oo 
 
34 UNIVERSITY EXTENSION SYLLABUS 
 
 3 Origin of rent 
 
 Rent arises from the varying degrees of productivity of 
 different pieces of land cultivated for the supply of 
 the same market. The price of the product of all 
 being the same, the more productive pieces can be 
 cultivated to greater advantage, and the cultivators 
 can afford to pay rent to the owners. 
 
 4 Law of rent 
 
 " The normal rent oi any piece ot land is fixed by the 
 difference between its annual yield and that of the 
 least productive land actually cultivated for the 
 supply of the same market." — Walker. 
 
 5 Relation of rent to price of product ; to wages 
 
 Economic rent forms no part of the price of the pro- 
 duct, when there is free competition, and when there 
 is still free land. 
 
 The payment of economic rent has no effect on wages 
 under free competition. 
 
 6 Effect of social progress on rent 
 
 The effect of increasing density of population, or of 
 other progress that strengthens the demand for land 
 is to increase rent. Note a similar effect on railroad 
 stock, and other kinds of property whose value de- 
 pends largely on a dense population. 
 
 7 Henry George and land nationalization 
 
 As rent is due to the demand for land consequent on 
 the increase of society, and not to the individual 
 efforts of the owner, it seems that the economic rent 
 is not earned by the land-owner, but comes to him 
 through his right of ownership. Consequently, many 
 have thought that, as society creates the demand for 
 products that results in rent, society should get the 
 
THE RENT PROBLEM 35 
 
 rent either through state ownership of the land, or 
 through taxation. 
 
 Most advocates of this doctrine think that present own- 
 ers of land should be compensated for the capital 
 they have invested in the land, or that the state 
 should take by taxation only the increase of the rent. 
 Henry George favors taxing to full amount without 
 compensation, a course that seems entirely unjust. 
 
 George's statement that there is a tendency for the 
 benefit of all improvements in production to be ab- 
 sorbed by rent is not true. 
 
 State ownership would probably not secure so efficient 
 use of the land as does private ownership. 
 
 It would increase the state machinery, perhaps, to an 
 undesirable extent. 
 
 In cities, in many cases, the government might probably 
 retain to advantage the ownership of the land, and 
 rent for short fixed periods at an appraised valuation, 
 thus securing a large revenue without injustice. 
 
 Topics for papers 
 
 1 If wheat sells at $i a bushel, and the various tracts of 
 land contributing to the supply of the market produce re- 
 spectively i8, 20, 22, and 24 bushels to the acre, what will 
 be the economic rent per acre on each tract ? 
 
 2 Show that the principle of rent applies also to excep- 
 tional business ability, so that the profits or extra wages 
 made by a man possessing this exceptional ability might 
 fairly be called rent. 
 
 3 Mention other kinds of property besides land whose 
 value is increased by the mere growth of society, without 
 effort on the part of the owner. 
 
 4 Show clearly that economic rent forms no part of the 
 price of agricultural products, while an increase in price wil) 
 raise rent. 
 
 5 How does the rent of mines differ from that of farm land .' 
 
36 UNIVERSITY EXTENSION SYLLABUS 
 
 Lecture 4 
 
 MONOPOLIES 
 
 I Natural monopolies 
 
 a Certain natural products, some of whicli are of com- 
 mon use in society, such as salt, nickel, gold, from 
 the nature of their production are not capable of 
 increased production at will. Their production is 
 limited to a certain place, and the owner of this 
 place has of necessity a monopoly of the product, 
 and may fix the price within certain limits at will. 
 
 In such cases the people may readily be unduly 
 Oppressed. Free competition is impossible. 
 b Other kinds of business, (especially those connected 
 with transportation, railroads, telegraphs, etc.,) 
 that require a large initial outlay of capital, but 
 that, after the plant is established, for every addi- 
 tional outlay bring a return in product much more 
 than proportional to the increased outlay, have 
 also the nature of a monopoly. For when they are 
 once established, no rival can enter their territory 
 without a much greater outlay of capital than they 
 need make to do the same business. 
 
 In such cases competition on equal terms is impossible. 
 An attempted competition results in great waste of 
 capital. To parallel a railroad costs vastly more 
 than to double the capacity of one already built. 
 Shall the saving be made, or competition at- 
 tempted ? 
 £ In cities, the supply of water, gas, electric lighting, 
 transportation by street railways, etc., is subject to 
 the same conditions as those enterprises mentioned 
 under b, for the number of street railways, gas 
 mains, etc., in any one street is strictly limited by 
 physical and economic conditions. 
 
MONOPOLIES 37 
 
 The case is the same as under b, but the government 
 can more readily take control and manage for the 
 good of the public than in the other larger enter- 
 prises. 
 
 2 Capitalistic monopolies 
 
 A great aggregation of capital in business frequently 
 gives the same advantage, in good part, as 
 that held by the so-called natural monopolies; 
 for the extent of business through more com- 
 plete organization enables the large establishment 
 to produce at much less expense than the small 
 one. 
 a The trust, a union of many corporations under 
 one management, so that a pooling of profits 
 makes their interests one, has proved one of the 
 most successful forms of such capitalistic monopo- 
 lies. 
 b But the same result is accomplished by extend- 
 ing a corporation so that its business is equally 
 great. 
 
 There may be competition in these cases, but 
 only on a great scale. The consequence is that 
 competition is very destructive, and in practice 
 will not continue. 
 
 The combination has the advantages (i) Of the most 
 skilled management, (2) Of great saving in the cost 
 of management, (3) frequently of saving in the cost 
 of transportation, (4) in purchase, making and use 
 of inventions, etc. 
 
 Its disadvantages are that it has the power to raise 
 prices above that normally fixed by free competition, 
 e. g., the sugar trust and whiskey trust have done so 
 at times. Still, this power is always strictly within 
 limits fixed, (i) by the lessening demand for goods 
 as the price increases, and (2) by the danger of 
 
38 UNIVERSITY EXTENSION SYLLABUS 
 
 attracting new capital into the business, if the profits 
 become too great. Claus Spreckles and sugai 
 trust, etc. 
 
 3 Legislative action regarding monopolies 
 
 a Experience seems to show that municipalities can^ 
 wisely manage water and gas works at a saving 
 generally to the citizens. 
 
 b Legislation that forbids combinations, pooling, etc., 
 providing a legal penalty for sucn acts, either de- 
 prives the community of the really great savings 
 made by such combinations, or more commonly 
 in important industries leads to the more complete 
 consolidation into huge corporations. Neither re- 
 sult, perhaps, is desirable. 
 
 e But the state shoula protect the citizens against ex- 
 tortion on the part of such combinations, (i) by 
 providing for the fullest publicity regarding their 
 business, (2) by forbidding undue increase of 
 prices. How the latter provision is best enforced, 
 whether by private suit, by commission, or other- 
 wise, must be determined by experience. In some 
 cases it is probable that state ownership of the en- 
 terprise is the readiest and best means of protecting 
 the rights of the people. 
 The legal monopoly held by owners of patents fre- 
 quently becomes oppressive. A careful revision 
 of the law so as to prevent this, while still en- 
 couraging inventors, is desirable- 
 Topics for papers 
 
 1 Why will great establishments compete in lowering 
 prices till all are losing money.? 
 
 2 What good arguments for state ownership of the tele- 
 graph are not sound for state ownership of the rail- 
 roads ? 
 
THE WAGES QUESTION 39 
 
 3 Is complete publicity of the methods of business and of 
 the status of a great monopolistic enterprise a real check to 
 abuse of power ? 
 
 4 In what respects is the telephone monopoly, based on 
 our patent laws, less injurious or dangerous than the tele- 
 graph monopoly, based on the nature of the business? 
 
 5 Under what conditions only should the franchise be 
 granted to street railways? 
 
 6 What arguments can you give against city ownership 
 and management of street railways, gas works, etc.? 
 
 Lecture 5 
 
 THE WAGES QUESTION 
 
 I Factors determining the rate of wages 
 
 a Wages are determined in the main by the productivity 
 of the labor. The efficiency of laborers is affected 
 by their food, physique, intelligence, training, 
 hopefulness, faithfulness, etc. Brassey found in 
 building railways that English navvies at 6s. per day 
 were often cheaper than French navvies at 3s. A 
 New England factory superintendent has found 
 that a rest of ten minutes and a glass of milk in the 
 middle of the forenoon, given to his factory girls, 
 more than pay for themselves in increased product. 
 
 b Machinery, if intelligently used, and skillful organiza- 
 tion increase the product, thus affording the oppor- 
 tunity for increase of wages, if prices of product 
 can be prevented from falling proportionally. 
 
 c Laborers must know and seek their own interests in 
 order to secure the gains that come from the in- 
 crease in their efficiency with improved methods of 
 production. 
 
40 UNIVERSITY EXTENSION SYLLABUS 
 
 2 Highest and lowest limits of wages 
 
 a Highest limit of wages, all that the employer can pay 
 and remain in business. If wages are about uni- 
 form in any line of business, the best manager could 
 pay more than he will need to pay. Other things 
 equal, under competitive system, the workman is best 
 off who works for the employer that makes the 
 largest profits. 
 
 b Lowest limit of wages, the least sum that will keep 
 the laborer in working condition. In exceptional 
 cases, it might pay the employer, economically, to 
 work horses or slaves to death, or to pay starvation 
 wages. Generally it is an economic mistake to pay 
 less than good living wages. Lassalle's " iron law 
 of wages " rarely true in real life. 
 
 3 Interest of society in the rate of wages 
 
 Whatever may be true of individual employers, society 
 is interested in keeping up and improving the 
 "standard of life." To secure this end, employers 
 and laborers must meet on equal terms in arrang- 
 ing wages, rules regarding work, etc.; and society 
 may be justified in taking measures to secure this 
 result. 
 
 4 Influence of trades unions on wages 
 
 Trades unions are a product of modern methods of pro- 
 ductio_n that put large numbers of workingmen of 
 the same trade under one employer. They are 
 suited to the conditions, a development. 
 
 a They may at times raise wages by their direct influ- 
 ence on employers, by threats of strikes, etc. 
 Their power is limited by the productivity of the in- 
 dustry, but (i) they may, by increased energy and 
 
THE WAGES QUESTION 4I 
 
 saving, increase their own productivity and get 
 then an increase in wages; (2) in exceptional cases, 
 they may force up wages at expense of employer; 
 (3) in exceptional cases, their efforts may keep 
 up prices or raise prices, and thus permit them to 
 increase wages. 
 b They may improve the conditions of their members, 
 their real wages, by traveling funds, insurance 
 funds, bureaus of information, etc. 
 
 5 Labor legislation 
 
 Legislation is a dangerous method of reform, but is 
 sometimes necessary. The legislative measures 
 that have seemed to aid laborers most are: 
 
 a Factory acts, providing for government inspection ; 
 
 b Regulation of labor of women and children; 
 
 c Employers' liability acts; 
 
 d Laws providing for payment of wages regularly, and 
 in cash; 
 
 e Courts of arbitration, etc. ; 
 
 / In Europe, especially in Germany, compulsory insur- 
 ance of workingmen against accident, sickness, 
 disability from old age and other causes partly at 
 the expense of the workingman, partly of the em- 
 ployer and partly of the state. The German govern- 
 ment seems satisfied with the results so far ; the 
 opinions of economists regarding the success of the 
 experiment differ. 
 
 The aim of legislation is not to give workingmen an advan- 
 tage over their employers, but to remedy social abuses and 
 to put the competing classes on an equal footing. 
 
 Topics for papers 
 
 I In hard times, why do employers more frequently dis- 
 charge the poorest paid workmen first.? 
 
42 UNIVERSITY EXTENSION SYLLABUS 
 
 2 Are the American workingmen more productive than 
 European workingmen because their wages are higher ? Or 
 are their wages higher because they are more productive ? 
 Or is there no relation between fheir relative wages and 
 productivity ? 
 
 3 Under what circumstances ought trades unions to limit 
 the amount of work that they will permit their members to 
 do? 
 
 4 May we look forward to any great increase in the wages 
 of skilled laborers ? If so, from what source will this in- 
 crease in wages be drawn ? 
 
 5 Mention any law passed in the interest of workingmen, 
 or advocated by them that is, or would be, injurious to 
 them. 
 
 6 Why ought not the state to supply labor for the un- 
 employed ? 
 
 Lectiire 6 
 
 COOPERATION AND PROFIT-SHARING 
 
 I Significance of cooperation 
 
 Cooperation means the union of the industrial classes. 
 By this union the employer, the entrepreneur, is 
 done away with, and the profits that he ordinarily 
 reaps are divided among the laborers. The labor- 
 ers may get interest, but if so they must own the 
 capital. They may save rent, but if so they must 
 own the land. In order to gain by cooperation, 
 the business must be better managed than it is by 
 the poorest class of employers ; otherwise there 
 will be no profits to save. 
 
 Since on account of their personal interests in the busi- 
 ness cooperating laborers are likely to work better 
 than for an employer, a cooperative industry, fairly 
 well managed, is likely to be profitable. 
 
COOPERATIOx\ A.\D i'ROFlT-iiHARlNG • 43 
 
 2 Distributive cooperation 
 
 The first, and on the whole, the most successful example 
 of distributive cooperation is that of the Rochdale 
 pioneers in England. In 1844, 28 weavers agreed 
 to put one pound sterling each into a common fund 
 to supply themselves with provisions. One of 
 their number was to attend the store for two even- 
 ing's each week. The first investment made so 
 great a profit that other riiembers came into the 
 business, and it rapidly grew until it is now one of 
 the largest establishinents in England with hun- 
 dreds of stores and millions of pounds of capital 
 The average rate of profit has been over 25^ clear. 
 
 Similar enterprises have been started in the United 
 States, notably by the farmers of the West in their 
 cooperative stores, and in many similar establish- 
 ments in New England. The most successful 
 stores have followed the Rochdale plan:' (a) they 
 give no credit; (b) they always sell genuine goods; 
 (c) as they are sure of customers they do little 
 advertising ; (d) they declare and fix a dividend of 
 four or five per cent on their stock and divide the 
 surplus among the purchasers in proportion to the 
 amounts purchased. Members usually get a larger 
 proportion on their purchases than non-members. 
 
 The chief dangers surrounding such enterprises come 
 from competition with outsiders, ignorance and 
 short-sightedness on the part of the managers, too 
 low an estimate of the difficulties to be encountered, 
 and voting by stock instead of by membership. 
 
 3 Productive cooperation 
 
 The most successful enterprises in the United States 
 have been in cooperage in Minneapolis; in stone 
 cutting in Vermont; in iron manufacture in New 
 York ; in shoe making in Massachusetts. The 
 
44 UNIVERSITY EXTENSION SYLLABUS 
 
 work is usually done by the piece; the usual wages 
 are paid; and the profits are divided in proportion 
 to the work, after a low dividend has been declared. 
 
 Cooperation is especially suited to industries requiring 
 comparatively little skill, in which piece work is 
 common, and for which relatively little capital is re- 
 quired, and little supervision. 
 
 One of the chief advantages is that it trains men to un- 
 derstand business, to appreciate its difficulties and 
 to be independent. It has a promising future. 
 
 A building and loan association is a cooperative 
 enterprise in which men of small means, by each pay- 
 ing in a small amount, monthly or weekly, and loan- 
 ing the sum thus accumulated to the one of their 
 members most desiring it, supply themselves with 
 capital for the building of houses, payment of 
 ■debts, etc. These associations take the place in 
 many cases of savings banks, and have acquired 
 great importance in this country. 
 
 4 Profit-sharing 
 
 a Profit-sharing differs from cooperation in that the 
 employer still remains to direct the business enter- 
 prise. It resembles cooperation in that a part of 
 the profits is divided among the workingmen. 
 
 b The plan was first developed by M. Leclaire in Paris. 
 In 1842 Leclaire, a painter, agreed to give his regu- 
 lar workmen a share of his profits. He showed 
 them how unusual excellence of work and diligence 
 and saving would provide a fund from which he 
 might, while obtaining greater profits for himself, 
 increase their wages. They were skeptical at first, 
 but the first division of profits satisfied them. He 
 paid the highest wages in the city and was able 
 eventually to add over 2oJ5 to their wages. 
 
COOPERATION AND PROFIT-SHAKING 45 
 
 In the Pillsbury Flouring Mills in Minneapolis, in a 
 number of years, 33^^ has been added from the 
 profits to the regular wages of a large portion of 
 the men, although their wages had been the highest 
 in the city. Mr Pillsbury says it pays the firm also. 
 
 The N. O. Nelson Manufacturing Company of St Louis 
 have for several years divided part of their profits 
 among all men who have worked for them for 
 more than six months. Mr Nelson says, " I 
 look upon this plan as business and duty, and not 
 as any philanthropy or kindness." Both employ- 
 ers and laborers are benefitted. 
 
 Proctor and Gamble, the soap manufacturers; Rogers, 
 Peet & Co., manufacturers of clothing in New 
 York; Rand, McNally & Co. of Chicago; John 
 Wanamaker, and many other wealthy employers of 
 labor have followed similar plans, to the satisfac- 
 tion of themselves and their workmen. 
 
 Some railroads in France, and the Toledo and Ann 
 Arbor railroad in the United States, have adopted 
 similar plans with gratifying success. 
 
 c Methods of division of profits. 
 
 Some employers give an indeterminate sum to the em- 
 ployees ; some divide all the profits above a certain 
 per cent, among the employees ; some divide the 
 surplus profits, after interest on the capital has 
 been paid, between capital and wages in proportion 
 to their relative amount; some in proportion to the 
 relative amounts of sales of goods and wages, etc. 
 All agree that the system is as profitable to the em- 
 ployers as to the employees. 
 
 5 Adaptability of cooperation and profit-sharing 
 for special industries 
 
 While cooperation is best adapted to industries requir- 
 ing small capital in proportion to the labor, to those 
 
46 UNIVERSITY EXTENSION SYLLABUS 
 
 needing little supervision and employing unskilled 
 labor, profit-sharing is best adapted to those that 
 require large capital and careful supervision, and 
 in which much waste may be avoided by care on 
 the part of the laborers. The effect of both is to 
 educate the laborers, to make their interests one 
 with those of their employers and thus to bring 
 about harmony between the industrial classes. 
 
 Topics for papers 
 
 1 Is farming an industry well-adapted for cooperation or 
 profit-sharing ? Reasons for answer. 
 
 2 Non-borrowing members of building and loan associa- 
 tions often make from T2 to 20 per cent, profit on their in- 
 vestment. What is the source of this large profit ? 
 
 3 Why are railroads not well-adapted to profit-sharing.? 
 
 4 If the plan can be well applied to railroads, what spec- 
 ial benefits to society would come therefrom ? 
 
 5 What are the chief causes of failures (a) of cooperative 
 enterprises (b) of profit-sharing enterprises? 
 
 Lecture 7 
 
 EMIGRATION AND IMMIGRATION 
 
 1 The good of society the standpoint of discussion 
 
 We must consider the effects of immigration not merely 
 on the wealth of our country, but on our politics, our 
 social life, our morals, our religion, etc. The ques- 
 tion is, perhaps, to be considered as mainly social and 
 political, and only to a less degree economic. 
 
 2 History of emigration and immigration 
 
 Early migrations were for purposes of conquest or 
 colonization. Emigration in these later days is for 
 
EMIGRATION AND IMMIGRATION 47 
 
 the benefit of the individuals, though it is frequently 
 thought that emigration will relieve the pressure of 
 population on the means of subsistence in the older 
 densely populated countries. Statistics show that 
 only from Ireland is emigration large enough to abso- 
 lutely decrease population. Those countries with 
 large emigration have also high birth rates. " Had 
 there been no emigration in this century, the popula- 
 tion of Europe would probably have been even less 
 than now." Emigration is not a remedy for over- 
 population, unless the emigrants are the weak and 
 thriftless. 
 From 1783 to 1820 there were perhaps 250,000 immi- 
 grants into the United States. In 1842 there came 
 some hundred thousand; in 1854, 427,833; in 1882, 
 730,000. The immigration of 1882 probably repre- 
 sents a normal birth increase of a population of 
 50,000,000 of people. We have therefore now an an- 
 nual immigration nearly equal to a normal increase 
 by births of a population of some 45,000,000. 
 
 3 Causes of immigration and forces of assimilation 
 
 The chief causes of immigration are: (a) commercial 
 disaster; (b) cheap transportation; (c) solicitation 
 of steamboat companies ; (d) prepaid tickets from 
 friends; (e) hope of improving one's political and 
 social conditions. 
 
 The chief forces of assimilation are: (a) economic pros- 
 perity, with the consequent love of the country that 
 has helped them; (b) free institutions; the vote, 
 schools, etc.; (c) the English language; (d) inter- 
 marriage. 
 
 4 Political effects of immigration 
 
 The immigrants of one nationality largely vote as a unit, 
 instead of from individual convictions. At times they 
 
48 UNIVERSITY EXTENSION SYLLABUS 
 
 permit foreign politics to influence their votes here; 
 their foreign customs and training leads them at times 
 to vote against our peculiarly American institutions. 
 The vote force of our immigrants is much greater than 
 that of the same number of Americans. Among im- 
 migrants the proportion of males is large, and they 
 average older than native-born citizens. Their vot- 
 ing force compared with that of the same number of 
 native-born Americans is about as 46 to 25. 
 
 5 Economic effects 
 
 (a) They bring small amounts of property; (b) the 
 cost of raising and educating them is saved to 
 the country ; but (c) the economic value of a 
 man lies mainly in his capacity and character, 
 not in the cost of bringing him up. It is the 
 amount of wealth which he will add to the com- 
 munity before he dies. 
 
 Three-fourths of the immigrants are unskilled laborers, 
 and the proportion of unskilled laborers is much 
 greater of late years. In earlier days, when we 
 needed much unskilled labor, our immigrants were 
 doubtless an economic advantage ; at present the 
 advantage is much less. If their standard of life is 
 very low, their competition on the labor market is 
 dangerous to our standard of life. 
 
 3 Social effects 
 
 The immigrants in many cases come from the lower 
 classes, and have, therefore, a tendency to lower our 
 standard of thrift, morality, health and intelligence. 
 The more favorable conditions here may remove this 
 danger, as it often has done. It cannot be shown 
 statistically that the foreign-born furnish a larger pro- 
 portion of the insane, blind, deaf, and so on, than do 
 
EMIGRATION AND IMMIGRATION 49 
 
 natives. The immigrants furnish a large proportion 
 of our criminals, a still greater proportion of our pau- 
 pers, and our illiteracy is doubtless greatly increased 
 by immigration. 
 
 7 Relation of the state to emigration and immi- 
 gration 
 
 Early in this century_, emigration of the poor and crim- 
 inal classes was assisted at times by foreign states, at 
 times by private societies, at times by steamship com- 
 panies for the sake of the fare. Since the American 
 nations have protested against these acts, they have 
 been largely stopped. Europe should protect her 
 citizens from emigration brought about by false repre- 
 sentations. 
 
 Immigration of contract labor, and of the defective, 
 dependent and criminal classes is forbidden by our 
 laws. The best methods of controlling immigration 
 are doubtless: (a) rigid enforcement of our present 
 laws; (b) an extension of those laws in such a way 
 as to ascertain more thoroughly the character of the 
 immigrants before permitting them to enter our coun- 
 try; and (c) by working in unison with the European 
 nations. 
 
 A state ought to restrict an immigration that is degrad- 
 ing. It owes it to itself and to the world not to lower 
 its plane of civilization. " One nation on a high plane 
 of civilization is better than half the world in a state 
 of semi-civilization. " 
 
 Topics for papers 
 
 1 Mention laws, either national or local, passed by the 
 votes of the foreign-born, contrary to the will of the native- 
 born. 
 
 2 Make an estimate of the net cash value to the country 
 of an average, diligent, sober laborer, whose working period 
 
 5 
 
so UNIVERSITY EXTENSION SYLLABUS 
 
 covers 40 years, who is supported by his parents 15 years, 
 and by his children five years. 
 
 3 If a Chinaman works in this country for 10 years at one- 
 third less wages than the American workmen, and then takes 
 his savings with him to China, has the country lost by him ? 
 
 4 Is restriction of immigration un-American ? Give 
 reasons for your answer. 
 
 5 Can you give any reason against making the English 
 language the medium of study and communication in all our 
 schools, even though some schools be in German districts, 
 where nearly all the children are German ? 
 
 Lecture 8 
 
 THE PROTECTIVE TARIFF 
 
 1 Duty of the state toward industry 
 
 The interests of individuals do not always coincide with 
 the interests of the people. It is the duty of the 
 state to further the general welfare, even though it be 
 at times at the expense of individuals. There is, 
 however, always danger in state interference. Society 
 is so complicated that the ultimate effects of laws are 
 with difficulty traced. The primary duty of a State 
 is, so far as may be, to keep opportunities equal for 
 all. 
 
 2 A protective tariff vs. a revenue tariff 
 
 The main purpose of the revenue tariff is to provide 
 means for the support of government, and it should 
 be so levied as to interfere as little as possible with 
 the natural course of industry in a country. A pro- 
 tective tariff, on the other hand, finds its chief pur- 
 pose in aiding the development of certain industries. 
 
THE PROTECTIVE TARIFF $1 
 
 Does it thereby check the development of others ? 
 Any revenue that comes from a protective tariff is to 
 be considered as incidental. It is no argument in 
 favor of a protective tariff that it furnishes a large 
 revenue. 
 
 3 On what classes of goods should a protective 
 
 tariff be levied ? 
 
 A protective tariff should not be levied, (a) On goods 
 that without it can be produced here more advan- 
 tageously than abroad. Such laws have a bad effect 
 'in that they deceive the people, are used for "log- 
 rolling" in congress, and often lead to the making of 
 new laws through wrong motives, (b) On goods f( r 
 the production of which the country is ill adapted, 
 unless they be needed for defense or for their educa- 
 tional value. 
 
 It can be justified, then, only for those industries to 
 which our country is well adapted, but in which, for 
 the present at least, foreign nations have the advan- 
 tage. 
 
 4 Who bears the burden of the duty ? 
 
 Trade is usually for the advantage of both parties to 
 the bargain. As a rule, however, the advantage is 
 not equal to both. The one that is put at the great- 
 est disadvantage in making the bargain, profits least. 
 When foreign nations must send goods through our 
 country or into our country to get rid of a surplus, 
 the probability is that the price is such that the 
 foreign manufacturer pays a good part or all of the 
 tariff duty ; when we are at a like disadvantage, we pay 
 it all. Generally speaking, the consumer of the im- 
 ported goods pays in increased prices, not all, but a 
 good part of the tariff, and he pays often an equal 
 amount on the home manufactures protected. 
 
52 UNIVERSITY EXTENSION SYLLABUS 
 
 5 Development of natural resources 
 
 It is well to have the natural facilities of any country- 
 developed and to have a great variety of industries in 
 every country. This development and variety may 
 be reached at too great a cost, and the cost is always 
 to be taken into consideration in proposing laws to 
 aid in the development of new industries. 
 
 6 Infant industries 
 
 The inhabitants of a city frequently pay a large bonus 
 for the establishment of a new industry in their midst; 
 similarly, a country might profitably at times pay, by 
 means of a tariff, for the introduction of new indus- 
 tries, until they became strong enough to stand alone. 
 But these industries will come in time at any rate, if 
 the country is well adapted for them; and care must 
 be taken that they are not procured at too great a 
 cost. By the policy of protection, capital is drawn 
 for a time from productive industry into a business 
 that is less productive than the average in the country, 
 unless the new industry be established by foreign capi- 
 tal. If the industry when established becomes more 
 profitable than the average, the policy may pay. 
 
 7 How high should a protective tariff be and how 
 
 long continued ? 
 
 A protective tariff should be high enough to protect, 
 but not higher; otherwise bad investments will be 
 made that will prevent the lowering of the tariff at 
 the proper time. 
 
 A protective tariff should continue till an industry is 
 fully established, if it is one well adapted to the coun- 
 try, but no longer. If experience shows that the pro- 
 tected industry can not thrive, it is evident that the 
 tariff was unwisely laid, and it should be withdrawn 
 on due notice. 
 
THE PROTECTIVE TARIFF 53 
 
 8 Protective tariff and wages 
 
 A protective tariff may and frequently does raise the 
 wages in certain protected industries, but this is in 
 part, temporarily at least, at the expense of other in- 
 dustries in the country. A protective tariff, how- 
 ever, cannot raise the general level of wages in the 
 country, so long as the tariff itself is necessary. 
 
 9 Protective tariff in politics 
 
 From the political side, a protective tariff is dangerous. 
 A proper adjustment of duties is a task of the great- 
 est difficulty and one for which congress from its 
 nature is ill adapted. 
 
 Interested parties may and do bring strong pressure to 
 bear to obtain duties unduly high and to keep them 
 longer than is wise. To secure these ends, large cor- 
 ruption funds will naturally be raised for use in elec- 
 tions. 
 
 10 Conclusion 
 
 Unless well laid and managed, a task of very great diffi- 
 culty, a protective tariff may well do more harm than 
 good. One should not be levied, until a strong 
 affirmative case is made for every product pro- 
 tected. 
 
 Topics for papers 
 
 1 Does not every argument in: favor of a protective tariff 
 by the United States against England apply as well to a 
 tariff by Minnesota and Illinois against New York and 
 Pennsylvania ? 
 
 2 If an industry, protected by a fair tariff for 60 years, is 
 not yet well enough established to meet foreign competition 
 without the tariff, what course ought to be pursued regard- 
 ing it ? 
 
54 UNIVERSITY EXTENSION SYLLABUS 
 
 3 Is it an advantage or a disadvantage to the workingmen 
 of the United States that foreign workingmen have lower 
 wages ? 
 
 4 If our tariff were abolished to-morrow in toto and all our 
 revenues were raised by direct taxation, should we probably 
 have, after 20 years, more or fewer -different industries than 
 we have now ? 
 
 5 (a) Are American workingmen really more productive 
 than foreign workingmen, or are their higher wages due to the 
 tariff ? (b) How can an immigrant become much more pro- 
 ductive immediately on his arrival here than he was in Ger- 
 many or Ireland a month earlier? 
 
 Lecture 9 
 
 THE RACE PROBLEM 
 
 1 Nature of the problem 
 
 Foreigners, in general, consider the race problem the 
 most difficult one before the American people. In its 
 nature it is economic, social and political. It concerns 
 the welfare, not only of the negro, but of the white as 
 well, and it is a question that is becoming of greater 
 import every day. 
 
 2 Statement of historic facts 
 
 History and science seem to show that the negro is an 
 inferior race, and one as yet incapable of an advanced, 
 civilized self-government. Throughout all history, the 
 race has been an enslaved one. The experience of 
 the West Indies shows that, as left to themselves, the 
 negroes are rapidly relapsing from a state of higher 
 civilization into a state of barbarism. In the recon- 
 struction period in the United States, the negro gov- 
 ernments of the South invariably ran the states heavily 
 
THE RACE PROBLEM 55 
 
 into debt, even to bankruptcy, passed laws of shameful 
 oppressiveness against the whites, fostered corrup- 
 tion, dishonesty and tyranny. 
 
 3 Present social conditions 
 
 While the negroes in the South have made some ad- 
 vancement in the accumulation of property in the 
 last 25 years, still the advance in most places is so 
 slight that it shows them now, as a race, to be exceed- 
 ingly careless and improvident. Relatively very few 
 of them in the South ever accumulate enough to be- 
 come regular tax-payers. In whole states, where they 
 are as numerous as the whites, not one will be found 
 with any shares in bank, railroad or other business 
 stock. In Chatham Co., Georgia, in which Savannah 
 is situated, the negroes constitute 61 per cent of the 
 population and hold 2 per cent of the property. There 
 is in the South not more than one negro lawyer or 
 physician to 50 white men of the same profession and 
 not one within 25 years has risen above mediocrity in 
 any line. Douglass and Bruce are not pure-blooded 
 negroes. 
 
 The morals of the negroes in the South are unspeakably 
 bad. " They are full of base, downright hypocrisy 
 and falsehood." — Rev. Isaac Williams (colored). In 
 many places, legal marriage and marital faith are 
 almost unknown. In Mississippi, in one county where 
 the negroes should have taken out 1,200 marriage 
 licenses, only three were taken out. 
 
 The negro has made since the war decided gains in 
 education. In 1880, in the black belt, more than 50 
 per cent of the negroes were illiterate; in 1890, prob- 
 ably about 30 per cent. The education is, however, 
 very meagre; but there are more than 16,000 colored 
 school teachers, a noteworthy fact. Most of the 
 negroes are wofully superstitious. 
 
56 UNIVERSITY EXTENSION SYLLABUS 
 
 Socially the negroes have no standing among the whites. 
 Education or partly white blood seems to make no 
 difference in this respect ; and their social condition 
 in the North does not differ materially from that in 
 the South. 
 
 4 Present political conditions 
 
 " The negro is not permitted to vote if the vote disturbs 
 the judgment of the white majority; and if it changes 
 the verdict of their former masters, it is not counted." 
 — W. T. Sherman. The fact illustrates the import- 
 ance of the question, for the experience of recon- 
 struction days seems to justify the whites in keeping 
 the supremacy, even by revolutionary measures, if 
 necessary. " Senator Hampton stated that to get the 
 negro out of politics, he would gladly give up the rep- 
 resentation based on his vote." If this could be 
 done legally by an educational qualification for the 
 suffrage, it would seem to be desirable. 
 
 5 Remedies proposed 
 
 a While intermarriage has been advocated by many, 
 experience seems to show that race feeling is so strong 
 as to render this solution of the problem impracti- 
 cable. • The mulattoes are rapidly decreasing in 
 number, since the abolition of slavery. 
 
 b Congressional interference has so far proved ineffect- 
 ual, when not injurious. Such interference by elec- 
 tion laws or social rights laws beyond the present 
 ones would probably be unwise, if not oppressive, 
 unless they were to bring about such a solution as 
 that suggested by Senator Hampton. 
 
 c Colonization by force is probably entirely impracti- 
 cable, and would be unjust. A voluntary emigration 
 to some of the best parts of Africa now controlled 
 by civilized governments, though mainly populated 
 
THE RACE PROBLEM 57 
 
 by blacks, might perhaps be encouraged with good 
 effect. The more intelligent of the race, with little 
 hope of preferment here, might well expect to become 
 men of influence and even of distinction there, while 
 most of them would have grounds of hope for improv- 
 ing their condition. 
 d For the present, education is certainly to be fostered, 
 as a means of elevating the race and making it less 
 dangerous. So far the negro, with individual ex- 
 ceptions, gives little promise of great advancement, 
 but the only hope is along the line of education, aca- 
 demic and specially industrial. 
 
 6 Measures to recommend 
 
 Give the best education possible to elevate the negro in 
 all ways, and study carefully the question of volun- 
 tary emigration. If the condition of the negro can 
 be made better in some of the most fertile parts of 
 Africa than it can become here, it would probably be 
 the best solution of the problem to encourage him to 
 emigrate. If he remains, it is perhaps probable that 
 he will disappear eventually before the stronger race, 
 as does the Indian. 
 
 Topics for papers 
 
 1 In what respects, from the legal and moral standpoint, 
 did the action of the whites in the South, in depriving the 
 negro of his suffrage, at the close of the reconstruction 
 period, differ from that of the American colonies in their 
 resistance to Great Britain in 1776.? 
 
 2 Would it probably be best for either the southern states 
 or the country as a whole to have the negro vote cast and 
 counted in southern states where the negro voters are in a 
 majority 1 
 
 3 Why do not southern Democrats advocate and carry 
 through an educational qualification for the suffrage } 
 
 4 Define manhood suffrage. 
 
58 UNIVERSITY EXTENSION SYLLABUS 
 
 Lecture lo 
 
 PRINCIPLES OF SOCIAL REFORM 
 
 1 Nature of society 
 
 Society is not merely an aggregation of n:en, women 
 and children living in the same locality, but it is this 
 aggregation so organized under laws and institutions 
 that it becomes an independent being. These laws 
 and institutions, the whole form of the organization 
 in fact, are the product of the changing thoughts, 
 feelings, superstitions, beliefs that have come from 
 the influences external and internal that have been 
 brought to bear upon individuals. 
 
 2 Social good and evil 
 
 Anything that molds the beliefs of individuals so as to 
 lead them toward a stronger, higher civilization is a 
 social good. Anything that molds beliefs in such a 
 way that civilization is weakened or made worse is a 
 social evil. Things that in one society are an evil, in 
 another society may be a good, and vice versa. In- 
 nocent customs when they become social evils are 
 frequently not recognized as such ; and the first clear- 
 headed people who recognize them as evil are con- 
 sidered fanatics. 
 
 3 The reformer deals with individuals 
 
 If society is based upon the beliefs, feelings, supersti- 
 tions of individuals, social reforms must deal with the 
 passions, fears, hopes, aspirations and beliefs of indi- 
 viduals. The reformer must make individuals see 
 evils for themselves and for society, and thus lead 
 them to change their customs. 
 
PRINCIPLES OF SOCIAL REFORM 59 
 
 4 How the influence of heredity may be modified 
 
 The influence of heredity in endowing men with evil 
 passions, thoughts and motives, is everywhere recog- 
 nized. This influence of heredity may be modified : 
 first, by bringing good influences to bear upon the 
 victim, especially in early youth; and second, by pre- 
 venting people that are ruled by evil passions from 
 propagating their kind. Hereditary criminals and 
 paupers are not normal human beings. They must 
 be treated as if ill or insane, and cured. A few days' 
 imprisonment of the confirmed drunkard or criminal 
 is a waste of public time and money. "It is unso- 
 cial to plead insanity as a defense. It is an explana- 
 tion. If we permit the plea we encourage crime." 
 The insane must be influenced toward self control. 
 
 5 Influence of environment 
 
 Criminals and paupers are not only born, but they are 
 frequently made through the influence of their envi- 
 ronment. Not all criminals are born evil. Society is 
 in good part responsible for a criminal environment. 
 " Every society has the criminals that it deserves. " 
 An environment may be changed: (a) At times, by 
 laws, but the effect of law is only temporary and only 
 a means, (b) By establishing societies and leading 
 individuals to bring purer social influences to bear 
 upon adults and to rescue children from debasing 
 homes and influences, (c) In the case of criminals, 
 by the best reformatory methods. 
 
 The best method of reform for adults is to lead them to 
 change their own environment; sometimes by pledges 
 and promises. Children should be trained in school 
 and in the home to self control. Civilization means 
 freedom from the power of custom and external in- 
 fluences and the direction of life by reason. An edu- 
 cated man does as he wills, and he wills according to 
 
6o UNIVERSITY EXTENSION SYLLABUS 
 
 the dictates of reason; an untrained man acts under the 
 influence of passion and impulse. 
 
 6 Responsibility of citizens and their duty regard- 
 ing social evils 
 
 From the very nature of society it follows that every 
 individual in society is responsible more or less for 
 social evils; that social reforms must come from the 
 influence of individuals upon individuals ; that, con- 
 sequently, it is the duty of every citizen by influence 
 and example and self control to train himself and 
 others toward the highest civilization. Society is 
 certain ultimately to improve, though the process of 
 improvement may be very slow. 
 
 Topics for papers 
 
 1 Which has the greater influence over us in our daily 
 lives, law or custom ? 
 
 2 Mention some customs which are social evils with us 
 to-day that in other times or countries have been social 
 benefits. 
 
 3 Why ought not the state to execute all criminals and pau- 
 pers that are recognized as incorrigible, and certain to be a 
 burden and menace to the state throughout their lives ? 
 
 4 Have you any reason for thinking that you would not 
 be a burglar or tramp or criminal of some other kind, had 
 you been reared as most of those classes have been ? 
 
 5 In what way are you personally responsible for the acts 
 of the drunkards in your city.?