Nine of the Harvard economics faculty pulled together to offer students a course on the Economic Aspects of War in the second semester of the 1939-40 academic year. According to the annual enrollment statistics, 25 students were registered for the course (perhaps there were auditors?). The enrollment jumped to 116 in 1940-41 and then dropped back down to 66 (1941-42) and fell to 34 (1942-43) as the number of concentrators (as well as instructional staff) fell during the course of WWII.
Addition: The final examination for Economics 18b from 1940.
________________________
WAR’S ECONOMIC PHASES STUDIED IN NEW COURSE
Harvard Crimson
December 19, 1939
Will Analyze Changes in Economics Incurred by War, With Emphasis on Present Conflict
Plans for a course on “Economic Aspects of War” to be given in the second semester were revealed yesterday by Seymour E. Harris ’20, associate professor of Economics, following approval by the Faculty Committee on Instruction.
Harris said, “This course will analyze the rapid dislocation of economic variables that occur in war times, and during the transition to peace. War economics is a branch of economics like Industrial Organization or Money and Banking, giving the department a chance to use Economics in the treatment of problems that face the world today.”
Contents of the Course
The course will use the tools of economic analysis, applying them to the present problem. Economics of past wars; market organization, price control and rationing; money and banking in war times; the relation of money and public and private capital markets; and the relation of war to economic fluctuations will be dealt with in the lectures and reading.
Included in the discussion will be a study of the effects of war on international balance of payments, on the distribution of gold and on commercial policy; repercussions on agriculture; methods of finance in the war and post-war periods; effects of war upon the distribution of income and wealth; trade unionism, money and real wages and employment in war times; and, finally, transition to peace.
Harris will be in charge of the course. Professor Harold H. Burbank, Professor William L. Crum, Professor Alvin H. Hansen, Professor Edward S. Mason, Professor Joseph H. Schumpeter, Professor Sumner H. Slichter, Professor John H. Williams, and Paul M. Sweezy ’32, instructor in Economics, will share in the teaching.
________________________
Course Enrollment
[Economics] 18b 2hf. Associate Professor Harris.–Economic Aspects of War.
Total 25: 16 Seniors, 6 Juniors, 2 Sophomores, 1 Other.
Source: Report of the President of Harvard College and Reports of the Departments, 1939-40Harvard University. , p. 99.
________________________
Economics 18b
1939-40
In order to assure more continuity in the course it has seemed expedient to assign virtually all of the following books.
Bresciani-Turoni, The Economics of Inflation (G. Allen & Unwin).
Cannan, E., An Economist’s Protest.
(Not an assignment in any part but is suggested strongly.) The book deals with numerous problems chronologically and hence is not easily apportioned over the various sections of the course.
Clark, J. M., The Cost of the Great War to the American People.
Pigou, A. C., Political Economy of War.
Stamp, J., The Financial Aftermath of the War
E.J. = British Economic Journal.
J.R.S. = Journal of the Royal Statistical Society.
Q.J.E. = Quarterly Journal of Economics.
Proceedings = Proceedings of Academy of Political Science.
R.E.S. = Review of Economic Statistics.
Week 1 (Feb. 5-9)
INTRODUCTORY.
Professor Harris.
Plan, readings, bibliography; war economics in historical retrospect; peace versus war economics in broad outlines.
Assignment:
Pigou, A. C., Political Economy of War, pp. 1-71.
Important suggestions:
Slichter, S. H., “The Present Nature of the Recovery Problem,” Proceedings, 1940, pp. 2-15.
United States Government, Industrial Mobilization Plan (revision of 1939). Senate Document No. 134.
War Office, Statistics of Military Efforts of British Empire during the Great War 1914-20.
Wolf, F. B. “Economy in War Tim” in the volume War in the Twentieth Century, pp. 363-408.
Other suggestions:
Clapham, J. H., An Economic History of Modern Britain—An Epilogue, pp. 511-554.
Einzig, P., Economic Problems of the Next War (1939).
Higgins, B., “The Economic War since 1918” in the volume War in the Twentieth Century, pp. 135-90.
Manual of Emergency Legislation (G.B.) with four Supplements, 1914-17.
Noyes, A. D., The War Period of American Finance, Chs. I-III, pp. 1-162.
Possony, S. T., Tomorrow’s War, pp. 135-235.
Speier, H., and Kahler, A., War in Our Times, Chs. 4-7, pp. 78-171.
United States Council of National Defense, Reports 1917-8.
War Cabinet, Report of 1918, Cmd. 325 (1919).
Weeks 2-3 (Feb. 12-23)
INDUSTRIAL ORGANIZATION.
Professor Mason and Dr. Sweezy.
Industry in war time. Industrial planning for war. Priorities, rationing and price control. The War Industries Board. Techniques of price fixing with special reference to the iron and steel industries. Present prospects for raw materials, industrial capacity and prices.
Assignment:
Clark, J. M., Costs of the World War, Chs. 19-21, pp. 262-291.
Heckscher, E., Sweden in the World War, Part I, pp. 3-42.
Keynes, J. M., “Policy of Government Storage of Foodstuffs and Raw Materials,” E.J., 1938, pp. 449-460.
Mason, E. S., “the Impact of the War on American Commodity Prices,” R.E.S., November, 1939.
Pigou, A. C., Political Economy of War, pp. 112-160.
Taussig, F. W., “Price Fixing as Seen by a Price Fixer,” Q.J.E., Vol. 33, p. 205.
Important suggestions:
Baruch, B., American Industry in the War (1921).
Beveridge, W., British Food Control (1928).
Report of War Industries Board, American Industry in the War (1921).
Other suggestions:
Birkett, M. S., “Iron and Steel Trade during War,” R.S.J., 1920.
Clarkson, G.B., Industrial America in the World War.
Clynes, J. R., “Food Control in War and Peace,” E.J., 1920, pp. 147-155.
Cunningham, W. J., “Railroads under Governemnt Operation,” Q.J.E., Vol. 36, pp. 188 et seq. and Vol. 36, pp. 30 et seq.
Day, E. E., “The American Merchant Fleet,” Q.J.E., Vol. 34, pp. 567 et seq.
Emeny, B., The Strategy of Raw Materials.
Final Report of the Chairman of the United States War Industries Board. (Feb. 1919), pp. 1-111.
Fontaine, A., French Industry during the War.
Great Britain Select Committee on High Prices and Profits, Special Report and Evidence (1917).
Great Britain Departmental Committee on Prices, Interim Report on Committee Appointed to Investigate Prices, Cmd. 8358, Cmd. 8483 (1917-18).
Hines, W. D., War History of American Railroads.
Litman, S., Prices and Price Control in Great Britain during the Great War.
Lloyd, E. M. H., Experiments in State Control.
Mitchell, W. C., Prices and Reconstruction (1920).
Morse, L. K., “The Price Fixing of Copper,” Q.J.E., Vol. 33, pp. 71 et seq.
Nolde, Russia in the Economic War.
Noyes, A. D., The War Period of American Finance, Ch. V (Mobilisation of American Industry), pp. 215-78.
Staley, E., Raw Materials in Peace and War (Council on Foreign Relations 1937).
Surface, M., Grain Trade during War (1921).
Scott, W. R., and Cunnison, J., The Industries of the Clyde Valley during the War.
War Industries Board, History of Prices during the War, W. C. Mitchell.
War Industries Board, International Price Comparisons, W. C. Mitchell.
War Trade Board, Government Control over Prices, P. W. Garrett.
Zagorsky, State Control of Industry in Russia during the War.
Zimmern, D., “The Wool Trade in War Times,” E. J., 1918, pp. 7-29.
Weeks 4-5 (Feb. 26-Mar. 8)
MONEY AND BANKING IN WAR TIMES.
Professors Williams and Hansen.
Objectives of monetary policy; weapons (including rationing); inflationary tendencies; relations of money and private and public capital markets.
Assignment:
Bresciani-Turoni, Economics of Inflation, Chs. 2 and 4, pp. 41-120, 145-182; VI, pp. 224-252.
Important suggestions:
Final Report, Committee on Currency and Foreign Exchange, (Cunliffe), (1919).
Hawtrey, Monetary Reconstruction.
Heckscher, Sweden in the World War, Part III (Monetary History), pp. 129-266.
Other suggestions:
Cannan, E., The Paper Pound of 1797-1821.
Cassel, G., Money and Foreign Exchanges after 1914, pp. 1-62.
Dulles, E. L., The French Franc 1914-28.
Edie, L. D., “The Influence of War on Prices,” Proceedings, 1940, pp. 34-46.
Edgeworth, Currency and Finance in Times of War.
Foxwell, H. S., Papers on Current Finance (1919), pp. 34-68.
Graham, F., and Whittlesey, R., Golden Avalanche.
Indian Exchange and Currency Commission, Report, Evidence and Appendices, Cmd. 527-9 (1920).
Rogers, J. H., Process of Inflation in France 1914-27, Ch. 1-4, 6-8.
Week 6 (Mar. 11-15)
RELATION OF WAR TO ECONOMIC FLUCTUATIONS.
Professor Schumpeter
Effects on consumption and investment demand; innovations; costs; employment, etc.
Assignment:
Bresciani-Turoni, Economics of Inflation, Chs. V, pp. 183-223; VII, pp. 253-281.
Important suggestions:
Clay, H., The Post-War Unemployment Problem, Ch. 1, pp. 1-24.
Other suggestions:
Graham, F. D., Exchange Prices and Production in Hyper-Inflation Germany. Part IV (Effects on German Economy), pp. 241-328.
Mills, F., Economic Tendencies in the United States, Ch. V., pp. 186-241.
Week 7 (Mar. 18-22)
EFFECTS ON INTERNATIONAL TRADE.
Professor Harris
Balance of payments and gold; exchange policy; commercial policy.
Assignment:
Bresciani-Turoni, Economics of Inflation, Chs. 1, pp. 23-41; 3, pp. 120-145.
Bullock, Williams, and Tucker, “Balance of Trade during the War,” in Taussig, Readings in International Trade, pp. 198-206.
Harris, S. E., “Gold and the National Economy,” R.E.S., February, 1940.
Hawtrey, R.G., Monetary Reconstruction, pp. 12-22.
Pigou, A. C., Political Economy of War, pp. 161-89.
Important suggestions:
Einzig, P., “The Unofficial Market in Sterling,” E.J., 1939, pp. 670-77.
Keynes, J. M., Tract on Monetary Reform, Chs. III, IV, pp. 81-192.
Other suggestions:
Bergendal, Sweden in the World War: Trade and Shipping Policy, pp. 43-128.
Cassel, G., Money and Foreign Exchanges, pp. 63-100, 137-186.
Dulles, E. L., The French Franc, 1914-28, Ch. 8, pp. 322-361.
Ellix, H., German Monetary Theory, Part III.
Graham, F., Exchanges, Prices, etc. in Germany, Parts II-III, pp. 97-241.
Holden, G., “Rationing and Exchange Control in British War Finance,” Q.J.E., February, 1940.
Loans to Foreign Governments, Senate Document No. 86 (1921).
Reparations and Inter-Allied Debt. Cmd. 1812 (1923).
EFFECTS ON AGRICULTURE.
Professor Harris.
Supply, demand, prices, etc.
Assignment:
Clark, J. M., The Costs of the War, Ch. 15, pp. 227-35.
Important suggestions:
Black, J. D., “The Effect of the War on Agriculture,” Proceedings, 1940, pp. 54-60.
Other suggestions:
Bernhardt, J., “Government Control of Sugar during the War,” Q.J.E., Vol. 33, pp. 672 et seq; “Transition of Control of Sugar to Competitive Conditions,” ibid., Vol. 34, pp. 720 et seq.
Eldred, W., “the Wheat and Flour Trade under Food Administration,” Q.J.E., Vol. 33, pp. 1 et seq.
Hibbard, B. H., Effects of the Great War upon Agriculture in the United States and Great Britain.
Reconstruction Committee, Agricultural Policy, Cmd. 9079, (1918).
Royal Commission on Wheat Supplies, First Report, Cmd. 1544 (1921).
Weeks 8-9 (Mar. 25-29)
PUBLIC FINANCE.
Professor Burbank.
Methods of Financing a war: Borrowing vs. taxes; tax policies, distribution of burden; management of public debt.
Assignment:
Bullock, C. J., “Financing the War,” Q.J.E., Vol. 31, pp. 357 et seq.
Clark, J. M., The Costs of the World War to the American People, Chs. 5-8, pp. 69-118.
Keynes, J. M., “The Income and Fiscal Potential of Great Britain,” E.J., 1939, pp. 626-35.
Pigou, A. C., Political Economy of War, pp. 71-112.
Important suggestions:
Clapham, J. H., “Loans and Subsidies in Times of War, 1793-1914,” E.J., 1917, pp. 493-501.
Edgeworth, Currency and Finance in Time of War.
Foxwell, H. S., Papers on Current Finance, pp. 1-33.
Great Britain Select Committee on National Expenditures, Reports 1917-22, Present and Pre-War Expenditures, Cmd. 802 (1920).
Keynes, J. M., Monetary Reform, Ch. II, pp. 46-81.
Keynes, J. M., Essays in Persuasion, Part I, pp. 3-76.
“Report of Committee on War Finance of the American Economic Association, A.E.R., Supplement, 1919, pp. 1-128.
Other suggestions:
Bogart, E. L., Direct and Indirect Costs of the Great World War (1919).
Fraser, Sir D., “The Maturing Debt,” R.S.J., 1921.
Jeze, G., and Truchy, H., The War Finance of France.
Mallet and George, British Budgets 1913-21.
May, G. O., “Economic Effects of Tax Policy in Peace and War,” Proceedings, 1940, pp. 61-68.
Moulton and Pasvolsky, World War Debt Settlements, pp. 1-425.
Noyes, A.D., The War Period of American Finance, Ch. IV, pp. 162-214.
Rogers, J. H., The Process of Inflation in France, Ch. V., pp. 48-88.
Silberling, N. J., “Financial and Monetary Policy of Great Britain during Napoleonic Wars,” Q.J.E., Vol. 38, pp. 214 et seq., 397 et seq.
Speier, H., and Kahler, A., War in Our Times, Chs. 8-11, pp. 171-245.
Sprague, O. M. W., “Conscription of Income,” E.J., 1917, pp. 1-25.
Stamp, J., Taxation during the War.
Warren, R., “War Financing and Its Economic Effects,” Proceedings, 1940, pp. 69-76.
EFFECTS OF WAR ON DISTRIBUTION OF INCOME AND WEALTH
Professor Crum
Assignment: Read two of the following:
Allen, J. E., “Some Changes in Distribution of National Income during War,” R.S.J., 1920.
Clark, J. M., The Costs of the Great War to the American People, Chs. 10-12, pp. 150-80.
Ezekiel, M., “An Annual Estimate of Savings by Individuals,” R.E.S., 1937, pp. 178-191.
Keynes, J. M., Tract on Monetary Reform, Chs. 1 (Consequences to Society of Changes in Value of Money), pp. 3-45.
Samuel, H., “Taxation of Various Classes of People,” R.S.J., 1919.
Select Committee on Increase of Wealth, Proceedings, Evidence, Appendices, H.C. 102 (1920).
Important suggestions:
Mitchell, W., C., Income in the United States (1921).
Other suggestions:
Bowley, A. L., “Measurement of Changes in Cost of Living,” R.S.J., 1919.
Leven, M., Moulton, and Warburton, America’s Capacity to Consume (1934), Chs. I-IX.
Stamp, J., Wealth and Taxable Capacity, pp. 1-191.
Week 10 (April 15-18)
EFFECTS ON LABOR.
Professor Slichter.
Trade unionism; money and real wages and employment.
Assignment:
International Labour Review, November 1939: Articles on “Labour in War Times,” pp. 589-615, 654-687.
Monthly Labour Review, October, 1939: “American Labour in World War,” pp. 785-95.
Slichter, S. H., Economic Factors Affecting Industrial Relations Policy in War Period (Industrial Relations Counselors), 32 pp.
Robinson, E. A. G., “Wage Policy in War Time,” E.J., 1939, pp. 640-55.
Important suggestions:
Cannan, E., “Industrial Unreset,” E.J., 1917, pp. 453-70.
Makower, H., and Robinson, H. W., “Labour Potential in War-Time,” E. J., 1939, pp. 656-662.
Other suggestions:
Bowley, Arthur L., Prices and Wages in the United Kingdom (Oxford, 1921).
Cole, G. D. H., Trade Unionism and Munitions.
Cole, G. D. H., Self-Government in Industry (1918).
Douglas, P., Real Wages in the United States (selected parts).
Gompers, Samuel, American Labor and the War (1919).
Hammond, M. B., British Labor Conditions and Legislation during the War (1919).
Hanna, Hugh S., and Lauck, W. Jett, Wages and the War (1918).
Industrial Unrese, Cmd. 8696 (1917-18).
Kirkaldy, A. N., ed., British Association for Advancement of Science: Labour, Finance and War (1917).
Lescohier, Don D. The Labor Market (1919), Part II.
Lorwin, Lewis L., The American Federation of Labor, Part III.
National Industrial Conference Board, Changes in Wages, September, 1914 to March, 1920.
National Industrial Conference Board, Problems of Labor and Industry in Great Britain, France and Italy (1919).
Proceedings, 1918-1920, “War Labor Policies and Reconstruction,” pp. 139-358.
Speier, H., and Kahler, A., War in Our Times, Ch. 12, pp. 245-269.
United States Council of National Defense, An Analysis of the High Cost of Living Problem.
United States Council of National Defense, Shortage of Skilled Mechanics (1918).
United States Department of Labor, Bulletins No. 244 and 257. Labor Legislation of 1917 and 1918.
United States Department of Labor, History of the Shipbuilding Labor Adjustment Board, 1917 to 1919.
United States Department of Labor, Reports 1918-1921.
United States Department of Labor, The New Position of Women in American Industry (1920).
United States Department of Labor, Industrial Efficiency and Fatigue in British Munition Factories.
United States Railroad Administration, Report of the Railroad Wage Commission.
Watkins, Gordon S., Labor Problems and Labor Administration in the United States during the World War (1919).
Webb, Sidney, The Restoration of Trade Union Conditions (B. W. Huebsch, 1917).
Wolman, L., Ebb and Flow of Trade Unionism, Chs. 2-3, pp. 15-32.
Wolman, L., Growth of American Trade Unions 1880-1923, Chs. 3-4, pp. 67-97.
Weeks 11-12 (April 22-)
TRANSITION TO PEACE (an attempt at integration).
Professor Harris.
Problems of costs, prices, money, international trade, public debt and taxation, wages, employment and output, agriculture and the distribution of the burden.
Assignment:
Bresciani-Turoni, The Economics of Inflation, Ch. X (Stabilization Crisis), pp. 359-98.
Clapham, J. H., “Europe after the Great Wars, 1816-1920”, E. J., 1920, pp. 423-36.
Pigou, A. C., Political Economy of War, pp. 161-182, 189-238.
Stamp, J., Financial Aftermath of War, Chs. I-III, V, pp. 9-88, 117-37.
Important suggestions:
Committee on National Debt and Taxation (Colwyn) Report.
Hawtrey, R. G., Monetary Reconstruction, pp. 55-91, 122-175.
Keynes, J. M., Economic Consequences of Peace.
Report of Committee on National Debt and Taxation, pp. 233-246 (Burden of Debt), 246-297 (Capital Levy), 297-351 (Taxes and Debt Redemption)
Scott, W. R., Economic Problems of Peace after War. Second Series.
Other suggestions:
Bonn, M. J., Stabilisation of Mark (1922).
League of Nations, Austria Financial Reconstruction, Summary Report 1926.
Macrosty, H. W., “Inflation and Deflation in the United States and United Kingdom 1919-23,” R. S. J., 1927.
Moulton and Pasovolvsky, World War Debt Settlements (Brookings).
Snowden, P., Labour and national Finance.
Stamp, J., Current Problems I Finance and Government, Ch. XI (The Capital Levy), pp. 227-71.
READING PERIOD.
Read one of the following:
Committee on National Debt and Taxation (Colwyn) Report.
Graham, F., Exchanges, Prices, etc. in Germany.
Hawtrey, Monetary Reconstruction.
Keynes, Economic Consequences of Peace.
Mitchell, W., Income in the United States (1921).
Moulton and Pasvolvsky. World War Debt Settlements.
Rogers, Process of Inflation in France, 1914-27.
Scott, W. R., Economic Problems of Peace after War, Second Series.
Speier, H., and Kahler, A., War in Our Times.
Stamp, J., Wealth and Taxable Capacity.
Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. HUC 8522.2.1 Box 2, Folder “Economics, 1939-40 (1 of 2)”.
Image Source: Seymour E. Harris from Harvard Class Album 1942.