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Chicago Exam Questions Theory

Chicago. First quarter price theory exams. Rees, 1960

Happy to add another round of first quarter price theory exams from the University of Chicago to the collection. Always nice to have a picture from the early professional years of the economists featured here. Distinguished old farts were once rising stars after all. (A general wisecrack made with the qualification, “present company excluded”.)

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Posted earlier

Reading list and exams from the Autumn quarter of 1962.

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Economics 300
Mr. Albert Rees

Midterm Examination
Autumn 1960

  1. (16 points) State whether each of the following statements about the U. S. economy is true, false, or uncertain, and explain your answers briefly.
    1. Consumers decide what will be produced.
    2. All consumers participate equally in determining what will be produced.
    3. The government influences the composition of output in the private consumer goods sector.
    4. The government determines the level of investment for the economy as a whole.
  1. (10 points) Comment briefly on the following statement:
    “When equilibrium prices in competitive markets are disturbed, they tend to be re-established. Thus the first effect of an increased supply of eggs is to lower the price. At this lower price, consumption is increased, and the increase in demand tends to drive the price back up again.”
  2. (16 points) Increased costs cause manufacturers to reduce the size of 5 cent chocolate bars from 2-1/2 ounces to 2 ounces. Because the bars are smaller, people eat more of them and consumption rises from 10, 000 bars a week to 11,000.
    1. Can these events be shown on an ordinary supply and demand diagram? If so, show them. If not, explain why.
    2. Can the elasticity of demand for chocolate be computed? If so, compute it. If not, explain.
  1. (24 Points) The following table gives hypothetical prices of pork and beef per pound in two years, and quantities consumed in a certain town.

Price per pound Pounds consumed
1959 1960 1959

1960

Pork

40 cents 50 cents 1000 800
Beef 60 cents 60 cents 1000

1200

    1. Compute the elasticity of demand for pork and the cross-elasticity of demand for beef in terms of the price of pork.
    2. Compute the Laspeyres price index for the price of meat from 1959 to 1960 (assuming that pork and beef are the only kinds of meat).
    3. Draw an indifference map for pork and beef for a typical consumer and illustrate the changes shown in the table on his indifference map. Derive two points on his demand curve for pork.
    4. Assume that the consumer’s money income is increased by an amount equal to his original income times the Laspeyres price index computed in (b). Demonstrate that he has been overcompensated for the price rise. Under what condition if any would this increase in income fail to overcompensate him?
  1. (16 points) Jones lives in a rented house for which he pays $150 a month. He has the opportunity of buying an identical house for $25,000, of which $15,000 will be paid in cash and $10,000 can be borrowed on a mortgage. He has figured that his monthly expenses would be $100 if he bought: $50 for interest on the mortgage, $20 for local taxes, and $30 for maintenance and depreciation. His income tax and expenses for fuel and utilities will not be affected by the purchase. He argues that it will cost him less to live if he buy the house; his wife argues that it will not.
    1. Under what conditions is Jones right? Under what conditions is Mrs. Jones right?
    2. Is there any divergence between the “right answer” to this problem from the private standpoint of the Jones family and from the standpoint of society? Explain.
  1. (18 points) The GJS corporation, manufacturers of gadgets, have determined that for every 10 per cent increase in the capacity of a gadget factory, minimum short-run average total cost falls by 1 per cent throughout the relevant range of capacities.
    1. What can you say about the production function for gadgets over the relevant range?
    2. Suppose that the company hires two factors of production, labor and capital, and pays each its marginal product. Will anything be left over for the owners of the company who contribute no services? Explain.
    3. Suppose that the company wants to build a plant to produce 10,000 gadget per week. What can you say about the size of the plant that will produce these most efficiently?

Economics 300
Mr. Rees
Fall. 1960

Final Examination
December 14, 1960

  1. (21 points) Show each of the following events on an indifference map:
    1. The change in the consumption of margarine following an increase in income (axes: butter and margarine. Assume that the income elasticity of demand is positive for butter and negative for margarine.)
    2. The change in the consumption of bread following a rise in its price. (axes: bread and all other commodities.) Identify the income and substitution effects of the price change.
    3. Do part (b) over using Friedman’s “Marshallian demand curve” concept and explain the difference between the diagrams for (b) and (c).
  2. (19 points) In the United States, about one-fifth to one-fourth of all income is property income. State briefly (a) the advantages of having private income from property in our economy (b) the costs or disadvantages. You may judge these according to any values you care to use, making the values as explicit as possible.
  3. (20 points) In a certain isolated area there are 50 farms of each of two types, A farms and B farms (100 farms in all). Within each type, all farms are identical. All farms are worked by identical workers. The marginal product schedules of one farm of each type are given below, in bushels of wheat per year.

A Farm

B Farm

No. of workers

1 100

95

2

90 84
3 80

73

4

70 62
5 60

51

  1. If there are 260 workers in the area, how many will be employed on each kind of farm? What is the total product of each kind of farm? The rent of each kind of farm? The wages of workers on each type of farm in bushels per year? (Assume that farmers compete freely for labor, and labor can move within the area.)
  2. By means of an irrigation project, the owners of twenty B farms transform them into A farms. Recompute the answers to (a), counting the transformed farms as A farms. Who gained and who lost from the project, and why?
    1. (20 points) By means of appropriate diagrams and/or explanations, show the short-run effect of each of the following taxes on the output and profits of a monopolist.
    2. An excise tax of 10 cents per unit of product.
    3. An excise tax of 10 percent of the price of the product.
    4. A corporate profit tax equal to 50 percent of net profits.
  1. (20 points) The Edgeworth Box Company is the only employer in the town of Yarmouth. Its supply schedule of labor is given by W = 40 + 1/4 q, where W is the wage in cents per hour and q is the number of manhours supplied per week. The company sells boxes in a competitive market. The value of the marginal product of labor is given by
    V = 100 – 1/2 q for values of q greater than zero.
  2. How many man-hours of labor will the company employ, and at what wage?
  3. Show diagramatically for part (a) first, the wage bill and second, the sum of monopoly profits and the return to factors of production other than labor.
  4. What will be the effect on employment of a legal minimum wage of 60 cents an hour? of 80 cents an hour?

This problem may be solved algebraically or graphically. The following table gives numerically some points on the schedules whose equations are given above:

Supply

Marginal Product

q (Man-hours)

W (cents) q (man-hours) W (cents)
1 40.25 1

99.5

2

40.50 2 99.0
3 40.75 3

98.5

4

41.00 4 98.0
etc.

etc.

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Economists’ Papers Archive. Albert Rees Papers, Box 1, Folder “Economics 300”.

Image Source: University of Chicago Photographic Archive, apf1-07002, Hanna Holborn Gray Special Collections Research Center, University of Chicago Library. Colorized by Economics in the Rear-View Mirror.

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Agricultural Economics Exam Questions Harvard Suggested Reading Syllabus

Harvard. Syllabus, readings, exams for agricultural economics. Galbraith, 1938-39

The first association made in one’s mind upon hearing the name John Kenneth Galbraith is certainly not “agricultural economics”, but that was the field in which his academic career began and indeed it was what got his foot into the door at Harvard. In his papers at the John F. Kennedy Presidential Library one can find some material for his courses that is not to be found in the Harvard archives, such as the course outline and reading assignments for his year-long course taught in 1938-39 to undergraduates and graduate students, “Economics of Agriculture”. 

Economics in the Rear-View Mirror tops off Galbraith’s syllabus and reading list with enrollment figures and semester exams transcribed from material in the Harvard Archives.

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Course Enrollment

[Economics] 72. Dr. Galbraith—Economics of Agriculture.

Total 41: 2 Graduates, 33 Seniors, 5 Juniors, 1 Other.

Source: Annual Report of the President of Harvard College 1938-1939, p. 98.

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Outline of the Course.
Three objectives.

  1. Some idea of the agriculture of the United States and Western Europe—that which one is likely to encounter. Two aspects:
    1. Type of production
    2. Kind of agricultural organization. Meaning.
  2. An understanding of the economics of the agricultural industry.
    Previous experience with economic theory
    Parts of a course such as this to see if it can be clothed with factual material and made useful.
    Peculiar advantages of agriculture.
  3. Building on the previous two stages, we turn to agricultural policy. What is agricultural policy? The farm problem.
    —we examine the factors underlying economic difficulties of agriculture in recent years, the causes of distress. The way the United States has attempted to meet is farm problem and the various policies which may be contemplated in the future.
    —we will attempt to compare this with the policy of other countries.

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Economics 71
(First half year)

Reading List

Persia Campbell, American Agricultural Policy, pp. 1-55.

President’s Report on Farm Tenancy in the U.S., pp. 35-49, 3-20. [cf. https://hdl.handle.net/2027/coo.31924074241344 ]

C.O. Brannen. Relation of Land Tenure to Plantation Organization. U.S.D.A. Bulletin 1269, 1924-25, p. 3, 8-38, 60-67.

The Future of the Great Plains. Report of the Great Plains Committee, pp. 1-89.

Chamberlin, Theory of Monopolistic Competition. Pp. 1-116.

Dennison and Galbraith. Modern Competition and Business Policy, pp. 1 to 109.

Garver and Hanson. Principles of Economics, Chapter V.

Black and Black. Production Organization, pp. 109-145, 255-260 inc.

Cassels, J. M. On the Law of Variable Proportions in Explorations in Economics, p. 223.

Galbraith and Black, Maintenance of Agricultural Production, Journal of Political Economy, June, 1938.

ECONOMICS 71
Syllabus – 1938-39

Chapter I.
A General Survey of Agricultural Production

    1. The agriculture of the United States. The livestock and crop production of the different regions of the United States. The classification of American agriculture by “type-of-farming”. A review of the type-of-farming map of the United States.
    2. The agricultural systems of the United States. The family farm. Ownership und tenancy. Part-time agriculture in the East. Large-scale and corporation forms in the Great Plains and West. Plantation and cropper agriculture in the South. Retrograde and decayed agricultural production in in the southern Appalachians.[Hand-written marks on the carbon copy indicate that (c) and (d) were not covered.]
    3. English agriculture. Character of agricultural production in England. The large land-owners and tenant farming. Independent ownership in England.
    4. Western Europe and the Danube Basin. (i) a survey of the agricultural map and agricultural production of Western Europe. (ii) The agricultural systems of the Continent. Peasant agriculture and types of peasant culture and organization. The distinction between peasant and farmer. Estate or Junker agriculture.

Chapter II
The Competitive Structure of Agricultural Enterprise as a Whole

    1. Monopoly, monopolistic — and pure competition. Review of the theoretical categories of competitive organization. Comparison of competitive organization in agriculture with that in industry. Comparisons of competitive structure in agricultural production with that in the supply of agricultural production goods.
    2. the significance of “pure” competition in agriculture

— in relation to agricultural price behavior
— in relation to behavior of agricultural production
— in relation to the variability of agricultural income.

Chapter III
The Organization of the Individual Farm Enterprise

    1. Theoretical differences between the adjustment of industry and agriculture to economic change. the significance of the coincidence of marginal with average revenue in agriculture.
    2. The combination of the factors of production. Diminishing returns. The highest profit combination in agriculture.
    3. Practical considerations in achieving optimum returns. The combination of enterprises. Budgeting technique. the effect of the period of production and the problem of price forecasting.

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Economics 71
Outline and Reading List
Second Half-Year, 1938-39

Chapter IV.
The Financing of Agriculture

    1. the nature of the financial requirements of the farmer. Land purchase credit; credit for durable capital; production credit.
    2. Recent trends in the development of agricultural credit institutions. The transition from private to public institutions.
    3. The riddle of public credit policy.

Readings:

Farm Credit Administration. Annual Report 1937. Pp. 15-83.

Galbraith. The Farmer’s Banking System; Four Years of F.C.A. Operations. Harvard Business Review. Spring 1937.

Galbraith. The Federal Land Banks and Agricultural Stability. Journal of Farm Economics, February, 1937.

Chapter V.
Agricultural Land

    1. The development of American land policy; the transition from free land to private ownership and full utilization.
    2. The problem of optimum utilization. The margin of desirable use. The reasons for sub-marginal utilization. The alternative uses of sub-marginal farm lands and the techniques for controlling land use.
    3. The economic aspects of the erosion problem.

Readings:

Hibbard, B. H. A History of the Public Land Policy, Chapters I, XIII, XVI, XVII, XVIII, XXVII, XXVIII.

National Resources Board. Part II. Report of the Land Planning Committee. Pp. 108-134, 154-202. A general rather than a detailed examination of this report is expected. Attention is called to other sections of the report.

U.S. Department of Agriculture. To Hold This Soil. Misc. Publication 321. 1938. Copies may be obtained from U.S.D.A, or Congressman.

Chapter VI
Agricultural Labor.

    1. General character of agricultural labor force. Family labor, the individual worker, seasonal and spring labor. Trade union organization in agriculture. Ownership aspirations of the agricultural laborer and the so-called agricultural ladder.

Readings:

Social Problems in Agriculture. I.L.O., 1938. Pp. 23-38, 40-54, 57-71, 72-97.

[International Labour Office. Studies and Reports, Series K (Agriculture) Social Problems in Agriculture. Record of the Permanent Agricultural Committee of the I.L.O. (7-15 February 1938). Geneva]

Chapter VII
The Agricultural Policy of the United States

    1. Proposal and legislation for farm relief during the 1920’s.
    2. The Agricultural Adjustment Administration and the farm program of the New Deal.

Readings:

Nourse, Davise, Black. Three Years of the Agricultural Adjustment, pp. 1-245.

Report of the Secretary of Agriculture 1938. pp. 1-68. This may be obtained from Office of Information, U.S.D.A. or a Congressman.

[There is a bracket for Chapter VIII hand-marked on Galbraith’s personal copy, from this and the final exam it appears that these topics were likely not covered in the course.]

Chapter VIII.
Comparative Aspects of Foreign Agricultural Policy

    1. The agricultural policy of Great Britain.
    2. The agricultural policies of Sweden and Denmark.
    3. Autarchial agricultural policy in Germany and Italy.
    4. The determinants of agricultural policy in review.

Readings:

Bonow, M. Agricultural Policy: Lessons from Sweden.

Denmark. Agriculture. The Agricultural Council. Look over and cf. particularly pp. 9-26, 287-316.

Marquis Child. Farmer-Labor Relations in Scandinavia. Yale Review, Autumn, 1938.

Karl T. Schmidt. The Plough and the Sword, pp. 1-175.

R. A. Brady. Spirit and Structure of German Fascism. Pp. 213-291.

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HARVARD UNIVERSITY
ECONOMICS 71
Mid-year Examination
1938-39.

  1. (Reading period material.) Write for about three-quarters of an hour on one of the following topics:
    How the United States government has disposed of its land.
    Proposed measures for farm relief in the 1920’s.
    The objectives and methods of the Agricultural Adjustment Administration 1933-36.
  2. What do you understand by the phrase “a system of agriculture”? With reference to your statement, outline the major systems of agriculture in the United States.
  3. Discuss the competitive organization of the agricultural industry and indicate the economic possibilities and limitations upon collective action by farmers for increasing their income.
    Cite relevant examples where possible.
  4. What difficulties would you expect to encounter in endeavoring to determine the cost of producing milk in New England assuming that farmers are ready to furnish you all available data?
  5. How does agricultural output behavior differ from that of industry during depression and why? Enter fully upon the theoretical aspects of this question and discuss critically.

Source: Harvard University Archives. Bound volume Mid-Year Examinations—1939 in Harvard University, Mid-year examinations 1852-1943. Box 13.

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HARVARD UNIVERSITY
ECONOMICS 71
Final Examination
1938-39.

  1. (Reading period material.) Write for about three-quarters of an hour on the application of the ideas of either Henry George or Thorstein Veblen to the problems of present day agriculture.
  2. “The agricultural laborer is truly the forgotten man. Unorganized, isolated, ill-paid and over-worked his plight is not even sufficiently well-known so that it bothers the nation’s conscience.”
    Discuss fully and critically
  3. Discuss and contrast the effects of (a) a too generous and (b) a too niggardly supply of farm mortgage credit under various conditions of agricultural prosperity and depression. Do not present an historical material that is not relevant to your answer.
  4. Explain as you see it, the relationship between private ownership of land and the problems of conservation and soil erosion.
  5. Is production control by the Federal government necessary to the well-being of American agriculture? Justify your answer fully.

Source: Harvard University Archives. Papers Printed for Final Examinations [in] History, History of Religions, … , Economics, … , Military Science, Naval Science (June, 1939) in Harvard University Final Examinations, 1853-2001. Box 4.

Image Source: Photo of John Kenneth Galbraith attached to his declaration of intention to become a citizen of the United States submitted on June 16, 1933 in Oakland California.
Fun fact: JKG weighed in at 180 pounds (81.65 kg) with a height of 6 ft 8 inches (2 m, 3 cm).  BMI = 19.8.

Categories
Business Cycles Distribution Economic History Exam Questions History of Economics Industrial Organization International Economics Johns Hopkins Labor Money and Banking Public Finance Public Utilities Statistics Theory

Johns Hopkins. General Written Exam for Economics PhD. 1956

 

One is struck by the relative weight of the history of economics in this four part (12 hours total) general examination for the PhD degree at Johns Hopkins in 1956. Also interesting to note just how many different areas are touched upon. Plenty of choice, but no place to hide.

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Other General Exams from Johns Hopkins

________________________

GENERAL WRITTEN EXAMINATION FOR THE PH.D DEGREE
DEPARTMENT OF POLITICAL ECONOMY

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PART I
June 4, 1956, 9-12 a.m.

Answer two questions, one from each group.

Group I.
  1. Write an essay on the theory of capital. It should include a discussion of the place of capital theory in economic analysis: for what purposes, if any, we need such a theory, Do not omit theories or issues which were important in the history of doctrines, even if you should regard them as irrelevant for modern analysis.
  2. Discuss and compare the capital theories of Böhm-Bawerk, Wicksell, and Hayek.
  3. Write an essay on the theory of income distribution. Organize it carefully, as if it were designed for an article in the Encyclopedia of the Social Sciences. Include discussions of alternative theories such as imputation theories, residual theories, surplus value theories, etc.
Group II.
  1. The following statements attempt to show that marginal productivity theory is inconsistent with factual observation. Accepting the stated facts as given, discuss whether they call for the rejection or major modification of the theory. If so, how? If not, why not?
    1. “In the most important industries in the United States wage rates are set by collective bargaining and are largely determined by the bargaining strength of the parties. Marginal productivity of labor is neither calculated nor mentioned in the process.”
    2. “In many industries competition among employers for workers is so limited that most firms are able to pay less than the marginal productivity of labor.”
    3. “Workers in some trades — say, carpenters or bricklayers — work essentially the same way as their predecessors did fifty years ago; yet their real wages have increased greatly, probably not less than in occupations where productivity has improved considerably over the years.”
  2. The determination of first-class and second-class passenger fares for transatlantic ocean transportation involves problems of (a) joint or related cost, (b) related demand, and (c) discriminatory pricing. Discuss first in what ways these three phenomena are involved here; then formulate a research project to obtain the factual information required for an evaluation of the cost relationships and demand relationships prevailing in the case of two-class passenger ships; and finally state the criteria for judging whether the actual rate differential implies conscious discrimination in favor of first-class passengers, conscious discrimination against first-class passengers, wrong calculation and faulty reasoning on the part of the shipping lines, or any other reason which you may propose.

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PART II
June 4, 1956, 2-5 p.m.

Answer three questions, at least one from each group.

Group I.
  1. There is a running debate on the question whether trade unions are labor monopolies. This debate obviously turns on the meaning of monopoly and on what effects union have had on their members’ wages, output, and conditions of work. Give both sides of the argument.
  2. Write an essay on the demand for labor.
  3. Write down everything you know about the incidence of unemployment among various classes of workers and about the fluctuations of unemployment over time. Discuss some of the problems of developing a workable concept of unemployment. Indicate whether the statistical behavior of unemployment throws any light on its causation.
Group II.
  1. What is a “public utility”? According to accepted regulatory principles, how are the “proper” net earnings of a utility company determined? And, finally, what factors are considered in setting an “appropriate” rate structure?
  2. What is the major purpose of the Sherman Anti-Trust Act of 1890? What are some of the more significant problems in determining what constitutes “restraint of trade”? What tests would you apply? Why?
  3. Analyze the economic effects of a corporate income tax. Be as comprehensive as you can.
  4. What are flexible agricultural price supports? Explain how they are determined and applied. Evaluate their use in the light of reasonable alternatives.

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PART III
June 5, 1956, 9-12 a.m.

Answer three questions, one from each group.

Group I.
  1. Describe briefly Schumpeter’s theory of economic development, and comment upon the possibility of testing it empirically.
  2. Describe briefly Keynes’ general theory of employment, interest and money; state its assumptions, structure, and conclusions; and evaluate it critically in the light of more recent theoretical and empirical findings.
Group II.
  1. What characteristics of economic cycles would you consider important in a statistical study of business cycles?
  2. In the study of long-term trends, what criteria would you use in constructing index numbers of production?
  3. What measures of economic growth of nations would you us? Consider carefully the various characteristics that you would deem indispensable in measurements of this sort.
Group III.
  1. Give a brief definition, explanation and illustration for each of the following:
    1. variance;
    2. confidence interval;
    3. coefficient of regression;
    4. coefficient of correlation;
    5. coefficient of determination;
    6. regression line.

[Note: Indicate where you have confined yourself to simple, linear correlation.]

  1. Write an essay on statistical inference by means of the following three techniques:
    1. chi square;
    2. analysis of variance;
    3. multiple regression.

Indicate the types of problem in which they are used, and how each type of problem is handled.

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PART IV
June 5, 1956, 2-5 p.m.

Answer four questions, one from each group.

Group I.
  1. Political arithmetic is a term that is applied to certain writings that appeared from roughly 1675 to 1800. What gave rise to such writings? What were the contributions of the different members of the “group”? Why should Political Arithmetic be given a terminal date?
  2. Discuss Quesnay’s Tableau Économique, Do you see in it anything of significance for the subsequent development of economic theory?
  3. Present arguments for the contention that J. B. Say was far more than “a mere disciple of Adam Smith”.
Group II.
  1. Discuss the relations between the English economic literature of the first half of the 19th century and the events, conditions, and general ideas of that time.
  2. Select three episodes in American economic history, and use your knowledge of economic theory to explain them.
Group III.
  1. Analyze the economic effects of a large Federal debt. Be as comprehensive as you can.
  2. At one time or another each of the following has been proposed as the proper objective or goal of monetary policy: (1) The stabilization of the quantity of money; (2) The maintenance of a constant level of prices; (3) The maintenance of full employment.
    Explain for each policy objective (a) what it means, that is, exactly what in “operational” terms might be maintained or stabilized; (b) how the objective could be achieved, that is, what techniques could be used to achieve it; and (a) the difficulties with or objections to the proposal.
  3. Irving Fisher and others have proposed that all bank be required to hold 100% reserves against their deposits. This was designed to prevent bank failures and, more important, to eliminate the perverse tendency of money to contract in recessions and expand in booms.
    Explain whether the proposal would have the effects claimed for it, and if so, why, and discuss what other effects it might have.
Group IV.
  1. Discuss the “law of comparative advantage” in international trade.
  2. Discuss “currency convertibility”.
  3. Discuss the “transfer problem”.
  4. Discuss the “optimum tariff”.
  5. Discuss the “foreign-trade multiplier”.
  6. Discuss alternative concepts of the “terms of trade”.
  7. Discuss the “effects of devaluation upon the balance of trade”.

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Source: Johns Hopkins University. Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy Series 5/6.  Box No. 6/1. Folder: “Comprehensive Exams for Ph.D. in Political Economy, 1947-1965”.

Image Source: Fritz Machlup in an economics seminar. Evsey Domar visible sitting third from the speaker on his right hand side. Johns Hopkins University Yearbook, Hullabaloo 1956, p. 15.

Categories
Chicago Exam Questions

Chicago. First quarter of price theory. Midterm and final exams. Harberger, 1957

 

A copy of the reading list for the first quarter of price theory at the University of Chicago taught by Arnold Harberger in the autumn quarter of 1955 has been transcribed and posted earlier. That copy was found in Milton Friedman’s papers at the Hoover Institution Archives. Copies of the two mid-term exams and the final exam for the same course in 1957 were found in Zvi Griliches’ papers in the Harvard University Archives. While not a perfect match, some items might have been added/subtracted to the later course, price theory à la Harberger in the mid-1950sis better reflected in these two posts together now.

______________________________

Economics 300A
Hour Examination
November 5, 1957

(60 points)

  1. True, False, or Uncertain. In each case write a paragraph explaining your answer. Your grade will depend heavily on your explanation.
    1. The price elasticity of demand for a good will be higher, the higher is the income elasticity of demand for that good.
    2. If X and Y are substitutes, a decline in the price of X can lead to an increase in the amount of Y demanded only if Y is an inferior good.
    3. If a particular producer of grapefruit produces 10 percent of the total supply of grapefruit, the elasticity of demand facing that producer must be at least -10.
    4. If the cross-elasticity of demand for X with respect to the price of Y is .5, the cross elasticity of demand for Y with respect to the price of X will also be .5.
    5. The demand curve for a commodity which includes the “income effect” is necessarily more elastic than the demand curve for the same commodity which includes only the substitution effect.
    6. Food and “all other commodities” cannot be complements.

(15 points)

  1. Derive the expression for the elasticity of demand facing a particular producer in terms of the elasticity of “total demand” in the market and of the elasticity of “other supply”.

(25 points)

  1. Using indifference curves, derive the supply curve of labor as A function of real wages. Distinguish between the “income effect” and the substitution effect. State what, if any, will be the circumstances under which a rise in real wages will lead to a reduction in the quantity of labor offers.

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Economics 300A
Hour Examination
4 December 1957
Mr. Harberger

(48 points)

  1. True, False or Uncertain. In each case write a few sentences explaining your answer.
    1. If the firms in the coal industry were to merge into one single firm, the demand curve for coal miners would become more elastic.
    2. Marginal cost exceeds average cost wherever marginal cost is rising.
    3. In the case in which factors combine in fixed proportions to produce a product X, the elasticity of demand in industry X for a factor will be greater, the larger is the fraction of the total costs of producing X which is spent on hiring the factor in question.
    4. A firm having monopsony power in the market for its labor will hire workers up to the point where their wage is equal to their marginal value product (marginal physical product times marginal revenue), not to the value of their marginal physical product.
    5. If, at a point in a homogeneous production function, the marginal product of A is rising, the marginal product of B will be negative. (Consider A and B as the only two factors.)
    6. If, at a point in a homogeneous production function, the marginal product of B is negative, the marginal product of A will be rising. (Consider A and B as the only two factors.)

(34 points)

  1. Discuss and comment on Marshall’s four rules of derived demand

(18 points)

  1. Discuss the relationship between short run and long run cost curves. Is a shorter run marginal cost curve always more elastic than a longer run marginal cost curve going through the same point on the long run average cost curve

 

*  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *

Final Examination
Economics 300A
Autumn, 1957

(70 points)

  1. True, False, or Uncertain. In each case write a few sentences explaining your answer. Your grade will depend heavily on your explanation.
    1. If the United States exports one tenth of its coal, the elasticity of supply of domestic coal being unity, the elasticity of supply of U.S. coal exports must be at least 10.
    2. If the price of X rises while the price of X stays constant, the amount of Y demanded will always increase, so long as X and Y are substitutes. (Assume money income and other prices remain unchanged.)
    3. The own-price elasticity of demand for a commodity must always equal or exceed, in absolute value, the cross elasticity of demand for that commodity with respect to the price of any other commodity.
    4. The own-price elasticity of demand for a commodity must always equal or exceed, in absolute value, the marginal propensity to consume that commodity.
    5. When the production function is such that factors of production combine with each other in fixed proportions to produce a product, the own price elasticity of demand for the use of any of the factors in the production of the product must be less than the price elasticity of demand for the product. (Assume that the production of the product in question is competitive.)
    6. The income elasticity of demand for a commodity is the marginal propensity to consume that commodity divided by the average propensity to consume that commodity.
    7. The elasticity of demand for labor in the production of automobiles will be lower in the case in which the quantities of other factors are given than in the case in which the prices of other factors are taken as given.
    8. The elasticity of demand facing a monopolist will be lower than the elasticity of demand facing the same industry if it were competitive.
    9. The welfare cost of a 5 percent tax on automobiles is the same as the welfare cost of a 5 percent subsidy on all goods and services other than automobiles.
    10. The welfare cost per dollar of tax receipts of a 5 percent tax on automobiles is the same as the welfare cost per dollar of tax receipts of a 5 percent tax on all goods and services other than automobiles.
    11. If, at a point in a production function which is homogeneous (of degree 1), the marginal product of factor B is negative, the marginal product of factor A will be rising (in the sense that the marginal product of A will be higher when the proportion of factor A to factor B is slightly increased). Assume that A and B are the only two factors.
    12. The supply curve of labor can be backward bending only if leisure is an inferior good.
    13. The demand for the services of a factor of production in a particular industry will be more elastic, the larger is the share of that factor in the total costs of the industry in question.
    14. All short run average cost curves are tangent at (at least) one point to the long run average cost curve.

(15 points)

  1. Outline the economics of the fishing industry. What resemblance, if any, do you see between the economics of the fishing industry under conditions of competition and the economics of monopolistic competition.

(15 points)

  1. Indicate, using supply and demand diagrams, what is the welfare cost of a tariff. Assume that the tariff is on a product (woolen cloth) in which the domestic demand is partly met by domestic supplies and partly met by imports. The tariff, of course, is a tax only on the imports. Assume that the imported product and the domestic product are for all relevant purposes homogeneous. What role does the elasticity of domestic demand for woolen cloth play in your measure of welfare cost? The elasticity of domestic supply of woolen cloth? The ratio of domestic supply to domestic demand?

Source: Harvard University Archives. Papers of Zvi Griliches, Box 130, Folder “Syllabi and exams, 1955-1959”.

Image Source: Arnold C. Harberger, 1957 Fellowship in Economics from the John Simon Guggenheim Memorial Foundation. Colorized by Economics in the Rear-View Mirror.

Categories
Exam Questions Harvard Socialism Suggested Reading Syllabus

Harvard. Methods of Social Reform. Enrollment, description, linked reading list, final exam. Carver, 1904-1905

Economics professor Thomas Nixon Carver was the second in a long line of Harvard professors who exposed their students to the doctrines of anarchism, socialism, and communism (among other -isms). Carver came to bury the well-intentioned but ill-conceived doctrines, not to praise them. 

Strange Political Bedfellow: An earlier post provides Thomas Nixon Carver’s link to the U.S. publicist of the Protocols of the Elders of Zion, 1921.

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Material from earlier years:

Exams and enrollment figures for economics of socialism and communism taught by Edward Cummings (1893-1900),
Socialism and Communism
(with Bushée), 1901-92,
Methods of Social Reform, (Carver), 1902-03.

Material from later years:

Short Bibliography of Socialism for “Serious-minded students” by Carver (1910),
Thomas Nixon Carver (1920),
Edward S. Mason (1929),
Paul Sweezy (1940),
Wassily Leontief  (1942-43),
Joseph Schumpeter (1943-44),
Overton Hume Taylor (1955).

________________________

Course Enrollment
1904-05

Economics 14b 2hf. Professor Carver. — Methods of Social Reform. Socialism, Communism, the Single Tax, etc.

Total 79: 10 Graduates, 25 Seniors, 26 Juniors, 13 Sophomores, 5 Others.

Source: Harvard University. Report of the President of Harvard College, 1904-1905, p. 75.

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Course Description
1904-05

14b 2hf. Methods of Social Reform. Socialism, Communism, the Single Tax. Half-course (second half-year). Tu., Th., at 1.30. Professor Carver.

Open only to students who have had Course 14a.
The purpose of this course is to make a careful study of those plans of social amelioration which involve either a reorganization of society, or a considerable extension of the functions of the state. The course begins with an historical study of early communistic theories and experiments. This is followed by a critical examination of the theories of the leading socialistic writers, with a view to getting a clear understanding of the reasoning which lies back of socialistic movements, and of the economic conditions which tend to make this reasoning acceptable. A similar study will be made of Anarchism and Nihilism, of the Single Tax Movement, of State Socialism and the public ownership of monopolistic enterprises, and of Christian Socialism, so called.
Morley’s Ideal Commonwealths, Ely’s French and German Socialism, Marx’s Capital, Marx and Engels’s The Communist Manifesto, and George’s Progress and Poverty will be read, besides other special references.
The course will be conducted by means of lectures, reports, and class-room discussions.

Source: Harvard University. Faculty of Arts and Sciences. Division of History and Political Science Comprising the Departments of History and Government and Economics, 1904-05 (May 16, 1904), p. 46.

___________________

[Library stamp: Mar 7, 1905]

Economics 14

Topics and References
Starred references are prescribed

[Note: Identical to reading list of 1902-03]

COMMUNISM

A
Utopias
1. Plato’s Republic
2. *Sir Thomas More.   Utopia.
3. *Francis Bacon.   New Atlantis.
4. *Tommaso Campanella.   The City of the Sun. (Numbers 2, 3, and 4 may be found in convenient form in Morley’s Ideal Commonwealths.)
5. Etienne Cabet.   Voyage en Icarie.
6. Wm. Morris.   News from Nowhere.
7. Edward Bellamy.   Looking Backward.

 

B
Communistic Experiments
1. *Charles Nordhoff.   The Communistic Societies of the United States.
2. Karl Kautsky.   Communism in Central Europe in the Time of the Reformation.
3. W. A. Hinds.   American Communities.
4. J.H. Noyes.   History of American Socialisms.
5. J. T. Codman.   Brook Farm Memoirs.
6. Albert Shaw.   Icaria.
7. G.B. Landis.   The Separatists of Zoar.
8. E.O. Randall.   History of the Zoar Society.

 

SOCIALISM

A
Historical
1. *R. T. Ely. French and German Socialism.
2. Bertrand Russell. German Social Democracy.
3. John Rae. Contemporary Socialism.
4. Thomas Kirkup. A History of Socialism.
5. W. D. P. Bliss. A Handbook of Socialism.
6. Wm. Graham. Socialism, New and Old.
7. [Jessica Blanche] Peixotto. The French Revolution and Modern French Socialism.

 

B
Expository and Critical
1. *Albert Schaeffle. The Quintessence of Socialism.
2. Albert Schaeffle. The Impossibility of Social Democracy.
3. *Karl Marx. Capital.
4. *Karl Marx and Fredrick Engels. The Manifesto of the Communist Party.
5. Frederick Engels. Socialism: Utopian and Scientific.
6. E. C. K. Gonner. The Socialist Philosophy of Rodbertus.
7. E. C. K. Gonner. The Socialist State.
8. Bernard Shaw and others. The Fabian Essays in Socialism.
9. The Fabian Tracts.
10. R. T. Ely. Socialism: An Examination of its Nature, Strength, and Weakness.
11. Edward Bernstein. Ferdinand Lassalle.
12. Henry M. Hyndman. The Economics of Socialism.
13. Sydney and Beatrice Webb. Problems of Modern Industry.
14. Gustave Simonson. A Plain Examination of Socialism.
15. Sombart. Socialism and the Social Movement in the Nineteenth Century.
16. Vandervelde. Collectivism [and Industrial Evolution].

 

ANARCHISM

1. *Leo Tolstoi. The Slavery of Our Times.
2. William Godwin. Political Justice.
3. Kropotkin. The Scientific Basis of Anarchy. Nineteenth Century, 21: 238.
4. Kropotkin. The Coming Anarchy. Nineteenth Century, 22:149.
5. Elisée Reclus. Anarchy. Contemporary Review, 45: 627. [May 1884]

 

RELIGIOUS AND ALTRUISTIC SOCIALISM

1. Lamennais. Les Paroles d’un Croyant.
2. Charles Kingsley. Alton Locke.
3. *Kaufman. Lamennais and Kingsley. Contemporary Review, April, 1882.
4. Washington Gladden. Tools and the Man.
5. Josiah Strong. Our Country.
6. Josiah Strong. The New Era.
7. William Morris, Poet, Artist, Socialist. Edited by Francis Watts Lee. A collection of the socialistic writings of William Morris.
8. Ruskin. The Communism of John Ruskin. Edited by W. D. P. Bliss. Selected chapters from Unto this Last, The Crown of Wild Olive, and Fors Clavigera.
9. Carlyle. The Socialism and Unsocialism of Thomas Carlyle. Edited by W. D. P. Bliss. Selected chapters from Carlyle’s various works. [Volume 1; Volume 2]

 

AGRARIAN SOCIALISM

1. *Henry George. Progress and Poverty.
2. Henry George. Our Land and Land Policy.
3. Alfred Russell Wallace. Land Nationalization.

 

STATE SOCIALISM

An indefinite term, usually made to include all movements for the extension of government control and ownership, especially over means of communication and transportation, also street lighting, etc.

1. R. T. Ely. Problems of To-day. Chs. 17-23.
2. J. A. Hobson. The Social Problem.

 

WORKS DISCUSSING THE SPHERE OF THE STATE IN SOCIAL REFORM

1. Henry C. Adams. The Relation of the State to Industrial Action.
2. *D. G. Ritchie. Principles of State Interference.
3. D. G. Ritchie. Darwinism and Politics.
4. *Herbert Spencer. The Coming Slavery.
5. W. W. Willoughby. Social Justice.

Source:  Harvard University Archives. Syllabi, course outlines and reading lists in economics, 1895-2003. Box 1, Folder “Economics, 1904-1905”.

______________________

ECONOMICS 14b
Year-end Examination, 1904-05

  1. So far as you have studied them, were the failures of communistic experiments due to the fact that they were carried out on too small a scale, to unfavorable outside conditions, or to inherent weaknesses in their internal organization? Give at least three illustrations.
  2. Give an outline of one Utopian scheme or ideal commonwealth which you have studied, and point out its strong and its weak features.
  3. Give an account of the origin of the German Social Democratic Party.
  4. Is there any essential difference between the income of the capitalist and that of the landlord? Explain your answer.
  5. Discuss the question, Is labor the sole creator of wealth?
  6. Discuss the question, Is there any relation between the inequality in the distribution of talent and the inequality in the distribution of wealth under the competitive system.

Source: Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 7, Bound volume: Examination Papers, 1904-05;  Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1905), p. 33.

Image Source: “The trouble, my friends, with socialism is that it would destroy initiative” by Udo J. Keppler. Centerfold in Puck, v. 66, no. 1715 (January 12, 1910). Library of Congress Prints and Photographs Division Washington, D.C.

Illustration shows a large gorilla-like monster with human head, clutching clusters of buildings labeled “Public Utilities, Competition, [and] Small Business” with his right arm and left leg, as he crushes a building labeled “Untainted Success, Initiative, Individualism, Independence, [and] Ambition” with his left hand, causing some citizens to flee while others plead for mercy. He casts a shadow over the U.S. Capitol, tilting in the background.

Categories
Distribution Exam Questions Harvard

Harvard. Enrollment, description, final exam. Distribution of Wealth. Carver, 1904-1905

 

In this course Harvard professor Thomas Nixon Carver was wearing his economic theorist cap. The first semester of the academic year 1904-05 was the first time he taught this one-semester course at Harvard. One notes (disapprovingly) that the course title apparently confounds income and wealth. On the other hand, strictly speaking, so did the title of Adam Smith’s magnum opus, Wealth of Nations.

__________________________

Course Enrollment
1904-05

 Economics 14a 1hf. Professor Carver. — The Distribution of Wealth.

Total 52: 5 Graduates, 23 Seniors, 12 Juniors, 6 Sophomores, 6 Others.

Source: Harvard University. Report of the President of Harvard College, 1904-1905, p. 75.

__________________________

Course Description
1904-05

[Economics] 14a 1hf. The Distribution of Wealth. Half-course (first half-year) Tu., Th., at 1.30. Professor Carver.

This course begins with a review of the theory of value and the laws which govern the exchange of commodities. The study is then carried into the field of distribution, and the attempt is made to find out the laws which actually, under existing conditions, determine the shares in the products of industry, such as wages, interest, rent, and profits. Finally the question of justice in distribution is considered.
The course will be conducted by means of lectures and classroom discussions.
This course is a necessary preliminary to 14b.

Source: Harvard University. Faculty of Arts and Sciences. Division of History and Political Science Comprising the Departments of History and Government and Economics, 1904-05 (May 16, 1904), pp. 45-46.

__________________________

ECONOMICS 14a
Mid-year Examination, 1904-05

  1. What is the relation between the value of an article and the labor which produced it?
  2. Explain what is meant by the elasticity of demand.
  3. Explain and elaborate the following passage: “In a trade which uses very expensive plant, the prime cost of goods is but a small part of their total cost; and an order at much less than their normal price may leave a large surplus above their prime cost.” (Marshall, Principles of Economics, 4th ed, p. 447.)
  4. Fill out the blank columns in Table I and point out where the law of increasing returns stops and the law of diminishing returns begins.
    Table I, showing the amount of corn (in bushels) which could be produced on an assumed farm of 100 acres by varying numbers of laborers employed in its cultivation:—

No. of laborers.

Total product. Average product per laborer. Marginal product. Total wages as based on marginal product. Total rent.

Rent per acre.

1

1000
2 3000

3

4000
4 4800

5

5500
6 6000

7

6300
8 6400

  1. Reverse Table I by filling out Table II.
    Table II, derived from Table I, showing the amount of corn which 8 laborers could produce on varying amounts of land:—

No. of acres.

Total product. Average product per acre. Marginal product per acre. Total rent as based on marginal product of land. Total wages.

Wages per laborer.

  1. How would the withdrawal of a given piece of land from cultivation affect the total product of industry in the community.
  2. Can you apply the theory of joint demand to the problem of the relation of capital to wages?
  3. How does it happen that a piece of capital will normally produce more during its lifetime than it is worth at any one time? What bearing has your answer upon the problem of the source of interest?
  4. In what important particulars do interest and rent resemble one another, and in what do they differ?
  5. Is risk productive? Is there any relation between risk and profits?

Source: Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 7, Bound volume: Examination Papers, 1904-05;  Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1905), pp. 34-35.

Image Source: Harvard Square (1904) from the Brookline Public Library, Brookline Photograph Collection at the Digital Commonwealth website. This work is licensed for use under a Creative Commons Attribution Non-Commercial No Derivatives License (CC BY-NC-ND).
CC BY-NC-ND icon

Categories
Columbia Economic History Economists Undergraduate

Columbia. On Rev. John McVickar’s political economy. Herbert B. Adams, 1887

The subject of political economy and its instructors received much attention in the 1887 survey of the study of history in the United States by Johns Hopkins history professor Herbert B. Adams. In this post Economics in the Rear-View Mirror shares those pages dedicated to the work of Rev. John McVickar (1787-1868) of Columbia College.

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McVickar’s political economy textbooks

Outlines of Political Economy. “A republication of the article [by J.R. McCulloch] upon that subject contained in the Edinburgh Supplement to the Encyclopedia Britannica together with notes explanatory and critical, and a summary of the science.” (New York: Wilder & Campbell, 1825).

Introductory Lecture to a Course of Political Economy (London: John Miller, 1830).

First lessons in political economy: for the use of primary and common schools. Albany: Common School Depository, 1837.
(Seventh edition. New York: Saxton and Miles, 1846)

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A Pair of McVickar Biographies

Langstaff, John Brett. The Enterprising Life, John McVickar 1787-1868. New York: St. Martin’s Press, 1961.

Dorfman, Joseph and R. G. Tugwell. “The Reverend John McVickar: Christian Teacher and Economist” in Early American Policy: Six Columbia Contributors  (New York: Columbia University Press, 1960), pp. 99-154.
Originally published in Columbia University Quarterly, Vol. 23, No. 4 (December 1931), pp. 353-401.

__________________________

Historian Herbert B. Adams on Professor John McVickar and historical political economy at Columbia College

…In the continuity of historico-political studies at Columbia College there was another important influence contemporary with Professor Anthon; namely, the Rev. John McVickar, who was appointed Professor of Philosophy, Rhetoric, and Belles Letters in the year 1817. This man, the successor of the Rev. Dr. [John] Bowden, is too little known to American students of History and Economics—in both of which studies he was a remarkable pioneer. It would be a useful, as well as pious service, if some one of the present instructors in the School of Political Science at Columbia would prepare an academic memorial of John McVickar, as he did of his worthy predecessor, Dr. Bowden (1751-1817), in an address delivered to the Alumni of Columbia College, October 4, 1837. Although the life of the Rev. John McVickar has been written, as a “clerical biography,” by his son [William A. McVickar, The Life of the Reverend John McVickar, S.T.D.] (New York: Hurd & Houghton, 1872), there is so much of academic interest in his life and writings, so much unused biographical material in the archives of Columbia College, that a special study of his professorial career would certainly repay the younger generation of teachers.

In general, the service rendered by Professor McVickar to Historical and Political Science at Columbia College resembles that rendered by Profesor Francis Bowen in Harvard College. Under the broad ægis of a philosophical professorship, both teachers protected and encouraged historico-political studies. Both inclined most strongly toward politico-economics. Both produced text-books of political economy, which, in their day and generation, proved very helpful to American students. In these days, when the study of economics is coming to the front in our colleges and universities, it will be recognized as a distinguished honor for Professor McVickar that he was one of the first men in this country to lecture upon political economy to students, and also one of the first to publish a text-book upon the subject.

John McVickar (1787-1863) was the son of a leading merchant of New York City, and was of Scotch descent. Heredity and environment gave him a natural inclination toward the study of economic questions. Born in the business center of the United States, into family acquaintance with wealthy and influential men, into association with Albert Gallatin, Isaac Bronson, and Mr. Biddle, young McVickar could not escape the great problems of currency and banking which agitated his times. Although, after his graduation from Columbia College, educated as a theologian and for a time settled as rector of a parish in Hyde Park, he readily accepted the philosophical professorship made vacant by the death of Dr. Bowden in 1817; and, within a year, petitioned to have Political Economy added to his already wide domain, without any increase of salary. The year 1818 marks the establishment of economic science in Columbia College, [see William and Mary’s claim to priority] which was one of the first to recognize this subject in the United States. For several years the need of a text-book of Political Economy was deeply felt by McVickar as an aid to his lectures. In 1821 he appears to have urged Edward Everett to prepare a suitable hand-book; but the great orator, while expressing interest in the subject, pleaded other engagements. In 1825 McVickar brought out his Outlines of Political Economy. This thin octavo volume, which an American student may well prize if he can now secure a copy, was an American adaptation of J. R. McCulloch’s article on Political Economy originally published in the Edinburgh supplement to the old Encyclopædia Britannica [1824, vol. 6, pp. 216-278]. This article, by the first Ricardo lecturer on Political Economy, well deserves comparison with that in the new edition of the Encyclopædia Britannica [by J. K. Ingram in the 9th ed., vol. 19 (1885), pp. 346-401], for the sake of the historical method which both articles represent. McCulloch, with his review of the rise of economic science, the mercantile system, the manufacturing system, the opinions of Mr. Mun, Sir Josiah Child, Dudley North, Mr. Locke, et al., may be as truly called a representative of the historical school of economics as Knies or Roscher.

It is interesting to reflect that the English historical method of J. R. McCulloch was introduced into America by John McVickar, more than twenty-five years before the rise of either of these German pioneers. By more than fifty years did the Scotch student of McCulloch and Adam Smith anticipate the American disciples of Knies and Roscher in advocating historico-political economy. McVickar appended many original notes to McCulloch; and, among other good things, he said of political economy: “To the rising government of America it teaches the wisdom of European experience.” He called economics “the redeeming science of modern times-the regenerating principle that, in connection with the spirit of Christianity, is at work in the civilized governments of the world, not to revolutionize, but to reform.” Besides his original notes, which show not only deep moral, but profound practical insight into economic questions, McVickar appended a general summary of economic science, which probably reveals something of his own method of presenting the subject to his classes. This text-book, which is said to be “the first work on the science of political economy published in America,”* (McVickar’s Life of John McVickar, 85) was welcomed by Chancellor Kent and Thomas Jefferson in the warmest terms. The sage of Monticello said of the subject which the book represented: “I rejoice to see that it is beginning to be cultivated in our schools. No country on earth requires a sound intelligence of it more than ours.” Among the early economic writings of McVickar are the following pamphlets: Interest Made Equity (1826), an English article, like his textbook, with American notes; Hints on Banking (1827), an original paper of forty or more pages, addressed to a member of the New York legislature, and said to have been the origin of the free banking law of New York (1833), and the scientific forerunner of practical reforms in the Bank of England, 1844, and also the National Bank Act of the United States in 1863 (Appendix to the Life of McVickar, 411). A more distinct foreshadowing of our present national system of banking was Professor McVickar’s article, published in 1841, entitled “A National Bank: Its Necessity and most Advisable Form.” This and other financial articles were published by McVickar in the New York Review, which closed its influential career in 1842. He wrote on “American Finance” [“American Finances and Credit,” The New York Review, Vol. VII, (July 1840).]; on “The Expediency of Abolishing Damages on Protested Bills of Exchange”; on “The Evils of Divers State Laws to regulate Damages on Foreign Bills of Exchange,” &c. A complete bibliography of the writings of John McVickar would be a helpful addition to the Dewey system of classification in the excellent library of Columbia College. In the history of economic thought in the United States John McVickar will surely take an honorable place as an academic pioneer. Practical economists, like Franklin, Robert Morris, and Alexander Hamilton, this country had, indeed, developed; but professorial economists, with original and independent views, were rare in America before the days of John McVickar. His chief rival to priority was Professor [Thomas] Cooper, of Dickinson College and of the University of Pennsylvania, the friend of Jefferson, and the predecessor of Francis Lieber, in Columbia, S.C. By a singular chance the two lines of economic teaching came together at last in Columbia College, New York, when, in 1857, Francis Lieber was called to that institution as the successor to John McVickar.

* This statement… is not strictly true, for Destutt Tracy’s Treatise on Political Economy appeared in 1817. McVickar undoubtedly deserves great credit for pioneer work, but the claim to absolute priority in this country as a lecturer upon Political Economy, asserted for him by his filial biographer, should be viewed with caution until the facts are more fully known,

The subject of History was also taught by Professor McVickar as a branch of his philosophical department. The statutes of Columbia College show that from the beginning of the present century Greek and Roman History, or Classical Antiquities, remained in the hands of the classical department. But some attention was always given to Modern History; and this appears to have been intrusted to the professor of Philosophy, Rhetoric, and Belles Lettres. It was probably a natural continuation of the original historical work of John Gross, teacher of Geography and German, who was made Professor of Philosophy, also, in 1787. The preparation which Professor McVickar enjoyed for the teaching of history was not as good as that which came to him by nature and associations for the teaching of political economy. While yet a theological student, he appears, however, to have pursued a course of historical reading, and to have invented a system of mnemonics which he applied to Bossuet’s Chronology. Entering upon his professorship, McVickar worked out his own methods of instruction by a long course of experience, the results of which may be generalized upon the basis of the following authentic testimony.

In a report of a committee of the trustees of Columbia College, a statement was made, in 1856, by Professor McVickar, with respect to the duties of his department. He said his professorship comprised a “union of historical and philosophical studies,” of which he advised the division. To the sophomores, during their first semester, he taught “Modern European History, more especially from the latter half of the fifteenth century, being the period suggested by Heeren as the true commencement of the European system. The second session was the exact and critical study of English History, as the great storehouse of our political wisdom. In addition to this, there were essays on subjects connected with the course read and criticised in the lecture-room; the whole embodied in notes, as stated in my annual reports.” In regard to his method of teaching, Professor McVickar told the committee that any good history in the hands of students was sufficient. He said, “The subject is studied, not the text-book. My practice is, at the commencement, to explain the subject of text-books, and to give the class a list of the best, any one of which would be satisfactory. I have made it a point to ascertain from the best students of other colleges the results of studying from text-books, and have felt that such instruction makes little impression on the memory.” In reply to a question from the committee as to whether he delivered his lectures from notes, Professor McVickar said: “I have written notes; and in the earlier periods I used to read lectures. Experience brought me to a freer use of notes, as guiding the analysis of the subjects, but not controlling the words.” All this has a modern tone, and indicates a man of sensible ideas. There was, however, one radical fault found with Professor McVickar, which he perhaps inherited from Dr. Bowden; he did not succeed in keeping good discipline among his students. In his eulogy of Dr. Bowden, McVickar said, with a certain reflex significance, “As a disciplinarian he held lightly the staff of authority.” McVickar’s own students appear to have recognized this amiable weakness in their master, and to have presumed upon it. Some dissatisfaction was felt by the administration with what was allowed in the recitation-room of Professor McVickar; and the inquiry into his methods of instruction reveals a certain animus, with a decided tendency toward a reconstruction of the entire department.

In 1857, by the advice and consent of Professor McVickar, the duties of his too laborious and too comprehensive professorship were divided into three independent chairs: (1) Moral and Intellectual Philosophy; (2) Ancient and Modern Literature (Belles Lettres); (3) History and Political Science. Professor McVickar was transferred to the chair of Evidences of Natural and Revealed Religion which he held until 1864, when he retired from office, his duties passing to the then president. The chair of Philosophy was given to Professor Charles Murray Nairne. The chair of Belles Lettres was offered to Samuel Eliot, of Boston; but he declined it, and the duties were then intrusted to Professor Nairne.

Source: Adams, Herbert B. The Study of History in American Colleges and Universities. Bureau of Education, Circular of Information, No. 2, 1887. (Washington: Government Printing Office, 1887), pp. 61-63.

Image Source: Frontispiece from William A. McVickar, The Life of the Reverend John McVickar, S.T.D.] (New York: Hurd & Houghton, 1872.

Categories
Economists France History of Economics

France. The Avignon-editions of L’ami des hommes. Mirabeau and Quesnay, 1761-64

One of the resources here at Economics in the Rear-View Mirror that I am proudest of is the “Economics Rare Book Reading Room: Classic Economics” that takes visitors to scanned original editions of great and obscure works that have been consulted by generations of historians of economics long after they were first consumed and digested by the readers of their day.

While working to fill a gap in my links to the Physiocrats’ Greatest Hits, I came upon a truly beautiful digitization of the six volumes that constituted all but one of the completed series “L’ami des hommes, ou Traité de la population” by Victor de Riquetti, Marquis de Mirabeau (with some collaboration with the Dean of Physiocrats, François Quesnay). The volumes, linked below, come from the Friedrich-Universität zu Halle and are now to be found at the Universitäts- und Landesbibliothek Sachsen-Anhalt.

While I remain a huge fan of both archive.com and hathitrust.org, I can hardly contain my bibliophilic delight at having such magnificent scans to read outside the setting of an archival reading room. The Bibliothèque nationale de France website Gallica provides us the first editions and the fifth part of L’ami des hommes that is apparently not included in the Universitäts- und Landesbibliothek Sachsen-Anhalt collection.

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1756

Mirabeau, Victor de Riquetti, Marquis de. First Avignon-edition of L’ami des hommes.

L’ami des hommes, ou, Traité de la population (Avignon, 1756). Partie I.  Partie II. Partie III.

Repository: Bibliothèque nationale de France, Gallica website.

1758

Partie IV. Précis de l’organisation, ou Mémoire sur les états provinciaux (1758)

Repository: Bibliothèque nationale de France, Gallica website.

1760

Partie V. Memoire sur l’agriculture envoyé à la très-louable Société d’Agriculture de Berne, avec l’extrait des six premier livres du corps complet d’œconomie rustique de feu M. Thomas Hale (1760).

Repository: Bibliothèque nationale de France, Gallica website.

1761-64

Mirabeau, Victor de Riquetti, Marquis de. A later corrected Avignon-edition of L’ami des hommes.

I. Partie. L’ami des hommes, ou, Traité de la population with François Quesnay. (Avignon, Nouvelle édition corrigée, 1762)

II. Partie. L’ami des hommes, ou, Traité de la population with François Quesnay. (Avignon, Nouvelle édition corrigée, 1762)

III. Partie. L‘ami des hommes, ou, Traité de la population with François Quesnay. (Avignon, Nouvelle édition corrigée, 1762)

IV. Partie. Précis de l’organisation, ou Mémoire sur les états provinciaux. (Avignon, 1762)

Suite de la IV. Partie. Réponse aux objections contre le Mémoire sur les états provinciaux. (Avignon, 1764)

V. Partie. Memoire sur l’agriculture envoyé à la très-louable Société d’Agriculture de Berne, avec l’extrait des six premier livres du corps complet d’œconomie rustique de feu M. Thomas Hale (1760). [Not in the digitized collection of the Universitäts- und Landesbibliothek Sachsen-Anhalt]

VI. Partie. Réponse à l’essai sur les ponts et chaussées, la voierie et les corvées (Avignon, 1761).

Suite de la VI. Partie. Tableau Économique, avec ses explications (Avignon, 1761).

Repository: Universitäts- und Landesbibliothek Sachsen-Anhalt.

Image Source:
Frontispiece of Part I of Mirabeau’s 1762 edition of L’ami des hommes, ou, Traité de la population. A copy of the 1759 engraving by Étienne Fessard is found online  at the Bibliothèque nationale de France website Gallica. Louis XV is portrayed as the benefactor (dressed in Roman armour) of the French peasantry, standing on a pedastal with the words “Lod. XV P. P. Util. publ. umdique Prospicienti”.
Another  copy is displayed at the British Museum Website. It is identified as the frontispiece to Mirabeau’s ‘L’ami des hommes’ (Paris: Hérissant, 1759-60), volume 1, 1757. Mellay identified as a “draughtsman whose sole work known is the frontispiece he designed for Mirabeau’s ‘L’Ami des hommes’ (Paris, 1759), which was engraved in 1757 by Etienne Fessart.”

Categories
Exam Questions Harvard Methodology

Harvard. Course enrollment, description, final exam. Economic Research Methods. Carver, 1904-1905

 

With this post we add Professor Thomas Nixon Carver’s exam questions for a graduate course on methods of economic investigation to our larger data base of economics examination questions. This was the fourth time that Carver offered this particular course at Harvard. The scope of his teaching portfolio was by far the broadest of the department, ranging across economic theory, sociology, schemes of economic reform, and agricultural economics so it is hardly surprising that he would have judged himself competent to teach/preach methodology too. 

The last question reveals his trinity of economic methods: historical, statistical and analytical. Judging merely from Carver’s exam questions here, I would hazard a guess that this course might have been considered a “snap” course. I have no explanation for the relatively low enrollment figures, that is unless he assigned significant amounts of German language texts. Taussig did that earlier.

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“Methods of Investigation”
in other years

Economics 13 (Scope and Methods) in 1895-96, Taussig.

Economics 13 (Scope and Methods) in 1896-97, Not Offered.

Economics 13 (Scope and Methods) in 1897-98, Ashley.

Economics 13 (Methods) in 1898-99, Taussig.

Economics 13 (Methods) in 1899-1900, Not Offered.

Economics 13 (Methods) in 1900-01, Carver.

Economics 13 (Methods) in 1902-03, Carver.

Economics 13 (Methods) in 1903-04, Carver.

Economics 12 (Scope and Methods) from 1914-15, Carver.

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Course Enrollment
1904-05

‡Economics 13 1hf. Professor Carver. — Methods of Economic Investigation.

Total 4: 2 Graduates, 2 Seniors.

Source: Harvard University. Report of the President of Harvard College, 1904-1905, p. 75.

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Course Description
1904-05

[Economics] ‡*13 1hf. Methods of Economic Investigation. Half-course (first half-year). Tu., Th., at 2.30. Professor Carver.

Course 13 will examine the methods by which the leading writers of modern times have approached economic questions, and the range which they have given their inquiries; and will consider the advantage of different methods, and the expediency of a wider or narrower scope of investigation. These inquiries will necessarily include a consideration of the logic of the social sciences. Methods of reasoning, methods of investigation, and methods of exposition will be considered separately, and the sources and character of the facts which are essential to economic science will be examined. Cairnes’ Logical Method of Political Economy and Keynes’ Scope and Method of Political Economy will be carefully examined. At the same time selected passages from the writings of Mill, Jevons, Marshall, and the Austrian writers will be studied, with a view to analyzing the nature and scope of the reasoning.

Course 13 is designed mainly for students who take or have taken Course 2 or Course 15; but it is open to mature students having a general acquaintance with economic theory.

Source: Harvard University. Faculty of Arts and Sciences. Division of History and Political Science Comprising the Departments of History and Government and Economics, 1904-05 (May 16, 1904), p. 49.

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ECONOMICS 131
Year-end Examination, 1904-05

  1. Discuss the question of the subdivisions of economics.
  2. Is it possible to discuss economic questions without passing ethical judgements? Explain and give examples.
  3. Of what use are mathematical formulae and diagrams in economics?
  4. Compare the historical and the analytical methods in their applicability to the following questions: (1) Is the world likely to become over populated? (2) Would communism tend to increase the rate of multiplication?
  5. Is there any relation between the theory of probabilities and any class of economic laws? Explain.
  6. By what logical method is it possible to distinguish the product of a given factor from that of a number of coöperating factors of production?
  7. Do economists make use of pure hypotheses such as are used in the physical sciences? Give reasons for your answer.
  8. What do you conceive to be the true relation of the historical method, the statistical method and the analytical method to one another.

Source: Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 7, Bound volume: Examination Papers, 1904-05;  Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1905), p. 33.

Image Source: Thomas Nixon Carver photograph from the November 11, 1916 issue of the Harvard Illustrated Magazine, p. 110.Colorized by Economics in the Rear-view Mirror.

Categories
Columbia Economists

South Carolina and Columbia. Two inaugural lectures by Francis Lieber, 1835 and 1858

Having just posted some early college exams in political economy from courses taught by Francis Lieber, I thought it would be useful to add this complementary post to provide some biographical content. This is probably as good as any place to add key sections from his inaugural lectures at South Carolina College (1835) and Columbia College (1858) that addressed the topic of political economy.

“Fun” fact: as an enlisted boy-soldier in the Prussian army, Lieber was wounded at the Battle of Waterloo.

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Principal Biographical Works

Thomas Sergeant Perry, editor. The Life and Letters of Francis Lieber (Boston, 1882)

Lewis R. Harley, Francis Lieber: His Life and Political Philosophy (New York, 1899).

Chester Squire Phinney, Francis Lieber’s Influence on American Thought and Some of His Unpublished Letters (Philadelphia, 1918). [Ph.D. Thesis, University of Pennsylvania]

“Lieber. (1800-1872.) Reception of the Lieber Manuscripts” in Daniel Coit Gilman, Bluntschli, Lieber and Laboulaye. Commemorating acquisition of Bluntschli and Lieber collections by the Library of the Johns Hopkins University, pp. 13-26.

Frank Dreidel, Francis Lieber: Nineteenth-Century Liberal. (Baton Rouge, LA: Louisiana State University Press, 1948).

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An Appreciative South Carolina wrote in 1859…

Francis Lieber was born March 18, 1800, in Berlin, Prussia. He went first to a private Grammar School in Berlin, and then to one of the old gymnasia in that city, called the Gray Convent. When but a lad, he left the school-house for the tented field, and had the good fortune to bear a part in some of the most renowned battles in modern times. I need only mention the names of Ligny, Waterloo and Namur. Upon his return from his campaign, he set to work to prepare himself for the University of Berlin, to which, in a short time, he was admitted, and where he was first matriculated. Subsequently he became connected with the University of Jena, a Saxon University, where, to secure himself against the interference of the Prussian Government, he was obliged to acquire the right of academic citizenship, by procuring the title of Doctor of Philosophy. From the University of Jena, he went to the University of Halle, and thence to Dresden, to pursue his studies privately. The oppressions of Greece now touched his heart, and he could not resist her appeals for help. He joined the Philhellenes, and repaired to that country to fight her battles. He next made his way to Rome in spite of the vigilance of the police, and was cordially received by the great historian Niebuhr, then the Prussian embassador, and made an inmate of his family. From Rome he went to his native city Berlin, and from Berlin he fled to England. He had now left his native country, and before I accompany him on his voyage to the New World, which, was to be his future home, let me mark some of the more interesting events of his past life. He belonged to the party of Liberals, and this party was persecuted throughout Germany. When a student at Berlin, he was charged with being a Revolutionist, and committed to prison. Upon his return to Berlin from Rome, he was a second time thrown into prison, and released by the influence of Niebuhr. Being threatened with a third arrest for the publication of certain poems written while in confinement, he fled the country as the only means of escape. Before leaving Germany, he published the Journal of his sojourn in Greece, which he wrote in Niebuhr’s house in Rome, and which has the distinction of being the first book which he gave to the public. This work was well received, and translated into several languages. In England certain tracts and contributions to German periodicals embraced pretty much his published labors. He arrived at New York in 1827, and took the preliminary steps at once to become a citizen of the United States. He made up his mind to fix his residence at Boston. He was a stranger, poor and friendless, and knew not what to do. But he could not remain idle. The consciousness of being in a land of liberty, where there were no restraints upon free inquiry, where the press was not muzzled, and where there were no dungeons for the expression of honest opinion, gave him courage. He conceived the bold idea of writing an American Encyclopedia. I have conversed with him about this period of his life, and as it was the beginning of a brilliant career of author ship in this country, a word of private history may not be without interest. One afternoon in Boston, when a dark cloud was resting upon his mind, he threw himself upon his bed, and indulged in profound reflection. “What shall I do?” was the overwhelming question. He felt that his brain was the only thing which he could draw upon for support. But how was that brain to be used? In what channel were his labors to be directed? In reading the lives of eminent scholars, how often do we find that at the outset they have been borne down, and for a period made miserable by this burdensome and heart-rending thought! Many a genius, under similar circumstances, has sunk never to rise again. A volume of the Conversationes-Lexicon happened to lie on a table in his room. As his eye rested upon it, he exclaimed. aloud, “That’s the thing; I’ll write an Encyclopedia.” He wrote out a plan at once, carried it to some of the leading men of Boston, and they gave it a hearty approval. He left immediately for Philadelphia, contracted with the publishing house of Carey and Lea, and sat down at once to the performance of his herculean task. The Encyclopedia was begun in 1828, and finished in 1831. From Boston he went to New York, where he resided for upwards of a year. He was not idle, but published none of his leading works during that period. His next residence was at Philadelphia, and there it was his fortune to become acquainted with the Hon. Mr. Drayton, formerly of Charleston, South Carolina, and to enjoy the respect and regards of that distinguished gentleman. The close of the year 1834, as has been previously stated, was marked by an almost desperate condition of the South Carolina College, and a thorough re-organization became a matter of necessity. A temporary arrangement was made to carry on the College for the first half of the year 1835, and Dr. Lieber, urged by his friend, Col. Drayton, left for Charleston with letters to Governors Hamilton and Hayne, who at once became his ardent supporters, and procured his consent to have himself put in nomination for a place in the new Faculty. June 5, 1835, he was unanimously elected Professor of History and Political Economy. At a subsequent period Political Philosophy was added to his department. Most of his principal works were written when he held a Professorship in the South Carolina College. Among these may be mentioned his Manual of Political Ethics, his Legal and Political Hermeneutics, or Principles of Interpretation and Construction in Law and Politics, his Essays on Property and Labor, and his Civil Liberty and Self-Government.

In 1844 and 1848, by permission of the Board of Trustees, he visited Europe, and while in Germany, published certain essays, which attracted attention. I have mentioned only the chief works of Lieber; those upon which his fame as an author is to rest. Beside these he published various tracts and essays on different subjects; all of them are valuable, and several are regarded as of high merit. I think that his reputation as a thinker and author, must finally rest, however, upon his Ethics, his Hermeneutics, his Labor and Property, and his Civil Liberty and Self-Government. I would not have the reader suppose that I attach but little value to his Encyclopedia. This is truly a great work of its kind. It met a pressing want. Something of the sort was much needed, and it accomplished the entire purpose for which it was designed. Perhaps a more acceptable service could not have been rendered. The great end was to diffuse knowledge in a country whose happiness is founded on liberty, and whose liberty is only to be preserved by widely spread information. Though the German work was adopted as the basis, it was the leading idea to make it an American Encyclopedia, by embodying in it all the valuable information relating to America, and I believe that this purpose was thoroughly accomplished. If he had left nothing else, this would be sufficient to secure for him an enviable reputation. Perhaps no book published in this country ever met with greater favor from the public. The necessities of the author compelled him to part with the copy-right, and others have received the pecuniary reward for his labors. But he had a higher compensation. His name soon became known to the people of this vast confederacy, and he was proud in the consciousness that whatever might be done in the future in this department of literature, he had led the way, and could not be forgotten. But the work was an Encyclopedia, and the world is apt to believe that an Encyclopedia is nothing more than an alphabetic digest, and arrangement of present science and knowledge. They regard it only as a monument of industry, and are reluctant to accord to the author the honors of original contribution. Though a book to make him remembered, it was not a book to give him reputation as a thinker, and his highest fame, therefore, must rest upon his other publications. Let not my remarks be construed into a disparagement of this truly valuable work. It soon became in truth the American Encyclopedia, and there is, perhaps, little risk in saying, that it has contributed more to the diffusion of general knowledge among us, than any book which was ever issued from the American press. It is not my design to give a notice of his many works. The greatest minds of our country have passed judgment upon them, and he would be truly a bold man who would now question their rank and position. The Manual of Political Ethics, the Essay on Property and Labor, the Hermeneutics, the Treatise on Civil Liberty and Self-Government, have received the highest praise from Story, Kent, Greenleaf, Prescott, Bancroft, and others in this country, and many of the best minds of Europe have added their warmest commendations. His works have been translated into several of the languages of Europe, and adopted as text-books in many of the highest Colleges and Universities. Perhaps no living author is more frequently referred to on all the great questions which he has discussed. Having written so much, and written so well, and in all exhibited the spirit of the true philosophical thinker, there are few subjects in any department of inquiry which cannot be illustrated by an appeal to his works. His service in this respect cannot be more strikingly set forth than by mentioning the fact, that in the discussion of the Elder question in the Presbyterian Review, a clergyman of the Presbyterian denomination, who in genius and learning is surpassed by no Divine in our country, refers to him in language of highest compliment. Can it be doubted that he is one of the great writers of the 19th century! Surely not when the United States, England, France and Germany, all unite in his praises, and have bestowed upon him the honors which are reserved only for the most successful authorship. It is to be remarked, that he has grappled with the most abstract and complex problems, and that he has earned his rewards, therefore, in the fields of highest thought and reflection. He has kept company with master minds, and vindicated his title to fellowship with them. The nature and philosophy of government, the application of the principles of ethics to the science of politics, the principles of interpretation as applicable to the duties of the law-giver, and the science of jurisprudence, the subjects of liberty, labor and property, these are the mighty themes to which he has consecrated his talents and his learning, and on which he has ventured to teach and enlighten his age. In such a field no common mind, no common learning could have achieved any measure of success. Known as he is throughout this country, he is one of a few American citizens who have an enviable European reputation. The estimate in which he is held is exhibited in the many honors and distinctions which have been conferred upon him by various learned Societies and Universities. I will only say here, that Harvard conferred upon him the degree of LL.D., that the French Institute elected him and Archbishop Whately on the same day, corresponding members to fill two vacancies, and that the King of Prussia offered him a Chair in the University of Berlin. He is enrolled among that select number described by Carlyle, “whose works belong not wholly to any age or nation, but who, having instructed their own con temporaries, are claimed as instructors by the great family of mankind, and set apart for many centuries from the common oblivion which soon overtakes the mass of authors, as it does the mass of other men.”

I have now made an allusion to the literary labors of Dr. Lieber. The character of his mind is well displayed in his works. The feature which perhaps would first strike the reader, is the fullness of his information, the amount of his laborious research. All that is known of his subject seems to have been stored away in his capacious brain, and he deals it out with a generous prodigality that looks like waste and extravagance. The whole encyclopedia of knowledge seems to be at his command, and he scatters it like one who feels that his treasures are exhaustless. His memory then is of the largest capacity. And will any of my readers give utterance here to the notion, that this great memory is proof that he possesses no extraordinary strength and vigor of understanding, and that he is wanting in high original powers? It is a popular idea, but I have ever regarded it as the refuge of ignorance and indolence. It is true that Lieber has mastered the thoughts of others; that in the particular department of inquiry to which he has devoted himself, he has gathered all that is valuable. But is this to be matter for reproach? He has not been content, however, with it: he is an earnest and bold thinker, and the knowledge and the speculations of others are not unfrequently used by him as stepping-stones to conduct him to still greater heights. I know that I am not mistaken when I say that he is no servile copyist, no mere follower in the footsteps of other men. On the contrary, he is remarkable for independence of thought, whether in conversation or in writing, and is prone to give utterance to his opinions now and then, with what might be called offensive dogmatism. I think that an examination of any one of his leading works will exhibit very prominently this feature in his mental constitution. He hesitates not to assail the opinions of any author, however renowned, and is ever ready to make battle with the most formidable antagonist. In this he displays a high courage, and a perfect self-confidence. I have sometimes suspected that he carries this too far; that in his eagerness for battle, he may fall short of full justice to his adversary. In all his writings he shows an independence and a love of liberty, which might be called Miltonic. Oppression, despotism in all its forms, whether of the mind or body, is abhorrent to his nature. There is no greater lover of law and of order, and he gives his love to Anglican, American liberty, or, to use his own phrase, to Institutional liberty. Feeling the foot of the oppressor when but a youth, immured in a dungeon because of his liberal principles, it may be said that his life has been one continued struggle for the cause of freedom. Nothing could be more congenial to his tastes, his habits of thought and his principles, than the Institutions of the United States, and feeling all the protection of a well-regulated government, here was opened for him a wide field, where he could labor unrestrained for the great cause to which he had consecrated himself with such devotion. He was the same man; he had changed his home, but not his principles. Even in his adopted country, the victory was not complete. He found the despotism of a fettered commerce, of an exorbitantly taxed industry, and a consequent odious discrimination by government. Could he take any other side than the side of Free Trade! He soon became one of the distinguished champions of the cause, and had the high honor of being styled by Robert J. Walker, the able Secretary of the Treasury, “the philosophic head of the Free Traders of the United States.” But this is not all. Our infant country is rapidly progressive. From causes easily understood, and which it is not necessary to enumerate, we are exposed to peculiar danger from the rise of every possible opinion on every variety of subject, the rapidity with which they are propagated, the facility with which organizations are effected, and the great power which they acquire, and bring to bear in the issues of the country. Some of these are indigenous, while the seeds of others are imported from foreign lands, and find here a genial soil, which soon stimulates them to germination. We have our Masonic and Anti-Masonic parties, our Seers and Prophets, our Socialists, Communists, Agrarians, Free Love Societies, Mormonists, Women’s Rights Parties, Polygamists, Know Nothings, and a long list of societies and associations, in too many instances based upon principles utterly subversive of right and order, and which, if not checked, would soon bring about anarchy and ruin. That man knows but little of the nature and philosophy of the human mind, and of the history of popular delusions, who is not prepared to concede that the grossest errors and superstitions, the wildest and most dangerous hypotheses, may take root and rally to their support a host of zealous and devoted advocates. Of this whole class of reckless innovators and insane enthusiasts, this motlied crew whose sole principle of cohesion is to war upon law and order, and to unsettle the great truths which have been sanctified by the experience of ages, Lieber indulges a feeling of abhorrence, and looks upon them as enemies of progress and the human race. The tone of his works cannot be too much commended. The spirit of justice, of morality and of liberty, breathes though them all. But the effects of his teachings are not limited to America. The press has borne them to the despotisms of the Old World, and wherever there is a struggle for the rights of man, he may be said to be present and bearing his part.

But I am to speak of him as a Professor in the South Carolina College. He was connected with it for upwards of twenty years, and closed his labors in December, 1856. From what has already been said, there can be no doubt that he had all the fullness of learning which could be demanded. With the details of history, with the speculations and systems of philosophy connected with the departments of which he had charge, it is hard to conceive of greater familiarity. To his classes he poured out his learning in one continued stream; and sometimes it confounded from its very profusion. Full of enthusiasm in the pursuit of knowledge, elevating it almost to the rank of a Divinity, he always exhibited the greatest earnestness of purpose. Of the amount of his labors in the College it is not easy to form a correct estimate. His whole time, with but little relaxation, was devoted to the severest toil. From his study to his class room, from his class room to his study — this was his life; and yet, with all this labor, his spirit was fresh, and his ardor unabated. Never have I known a more insatiable appetite, and he was ever in search of food for its gratification. But, not to indulge in metaphor, I have never met a more inquiring mind. He was always in quest of knowledge, and drew it from every source. Like Franklin, he would extract it even from the ignorant and unthinking, and thus he levied his contributions upon all. All know how suggestive a fact may be to a thoughtful mind, and what beautiful superstructures of knowledge have been reared from the humblest beginnings. Overflowing with information on such a variety of subjects, he had it in his power to render a particular service to the young men of the College, which I have always regarded of immense value. In the many public exercises which they are required to perform, such as speeches at the Exhibition, at Commencement, before the Societies, and Prize Essays, nothing was more common than to seek a conversation with Lieber, who would suggest the plan of discussion, and point to the best sources of information. His lectures and his published works, too, furnished a mine of thought and knowledge, from which the richest treasures were drawn. I must call attention for a moment to the arrangements in his lecture room. One would expect to find maps, and charts and globes, in the room of a Historical Professor, as these are the indispensable tools with which he has to work. There is nothing in this, then, to distinguish the room in which Lieber met his classes. But there is something besides which rivets the attention, and appeals to the noblest affections. The walls are graced with busts of the immortal men of ancient and modern times, and thus is brought to bear something of the power of a real presence. Here in mute but expressive silence stand Homer, Demosthenes, Socrates, Cicero, Shakspeare, Milton, Kant, Goethe, Luther, Washington, Alexander Hamilton, Humboldt and William Penn. Here, too, are to be seen the illustrious trio, Webster, Calhoun and Clay, and two of the favorite public servants of Carolina, Preston and McDuffie. I need not insist that these are not to be regarded in the light of mere ornament; that they speak to the souls of all who look upon them, and tend to arouse into activity all that is noble, refining and elevating.

Dr. Lieber’s resignation was accepted by the Board of Trustees December, 1856, and the following proceedings were had on the occasion:

Whereas, The resignation of Dr. Lieber has been accepted by this Board:

Resolved, That the Board of Trustees have a full appreciation of the eminent learning and just reputation of Dr. Lieber.

Resolved, That the Board tender to Dr. Lieber their hearty and sincere good wishes for his future welfare and prosperity.

It is worthy of note, that at a meeting of the alumni of the College, resolutions of a most complimentary character were adopted, and two massive silver vessels presented to him in token of their regard and admiration. I have now brought to a close my very imperfect notice of Lieber as a Professor in the South Carolina College. I have but a single additional remark to make. He must take his place as a star of the first magnitude. In all future time the State will regard his name as one of the brightest and most illustrious on the roll of her Faculty. That he honored her cherished Institution, that he spread her fame to distant lands, and contributed in largest measure to her exaltation and glory, none will question. He will live forever in her history, and never, never, will it be forgotten that her chosen temples of learning were adorned by his ministrations, and that he devoted the best portion of his life to her service and honor.

I shall now dismiss him as an author and a Professor, but I must be permitted to say a word of him as a man. Associated with him for thirteen years as his colleague in the Faculty, and sustaining towards him relations of confidence throughout that period, I think that I have had ample opportunities for forming a right estimate, and that my judgment is entitled to some measure of value. He knows his strength, and never distrustful of his powers, always exhibits a spirit of bold self-reliance. In the ardor of discussion he may become too dogmatic and peremptory, and act like one who never shows mercy, or “gives quarters.” This may create the impression that his character is cast in too stern a mould to allow of the existence of the tender and sympathetic affections. But this is a mistake. His heart is as large as his brain, and endued with a tender sensibility. He can carry out the lesson of the poet:

—— — — — — “to feel another’s woe,
To hide the fault I see.”

I know that he is kindly-natured, free to forgive, and incapable of malice. His personal morality is without reproach, and he illustrates in his life the doctrines so impressively inculcated in his published works. He is fond of the beautiful, and is arrested in admiration whenever it is presented. Is it beneath the dignity of my subject to say that he will almost steal a flower, that he may send it with a complimentary note to a young lady! He loves to look out upon a May-day when the earth teems with buds and blossoms, and how responsive is his heart with its hopes and its joys! Shall I add that he has a youthful fondness for the society of girls, and that no young gallant can surpass him on such occasions in light and airy conversation. But I must not forget his sympathy with little children; “those flowers that make the hovel’s earthen floor delightful as the glades of paradise.” He will play with them by the hour, and leading the way, forget his manhood, and become as one of them. Does not this speak volumes for his heart? Shall I say more? He has left the South Carolina College, but his affections still linger around it. He loves the trees under whose shades he walked for twenty years, the lecture room where he so long labored in the cause of knowledge; and the ivy which he planted, and which now spreads itself in rich luxuriance over the house which he occupied, has fastened its tendrils upon his heart, and is entwined in everlasting embrace around it.

But I have concluded what I had to say. Dr. Lieber is residing at present in New York, and fills the Professorship of History and Political Science in the School of Jurisprudence of the Columbia University, to which he was unanimously elected May 18, 1857. Here is a wide field congenial to his tastes and attainments. He is in the vigor of life, and to human eye many years of labor are yet before him. Long may he live to instruct the youth of America, and to scatter over the world the fruits of his genius and learning!…

Source: M. LaBorde, History of the South Carolina College (Columbia, S.C.: Peter B. Glass, 1859), Chapter XVI. Pp. 395 -410.

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From Lieber’s Inaugural Lecture at South Carolina College (1835)

…Civil history, the main subject of instruction in history in the college, will necessarily lead to inquiries into the various subjects of politics. It is not only my intention to treat of them while I am proceeding in history, but also to teach them, if time can be found, in separate lectures. On the other hand I shall always endeavor to exhibit the whole state of civilization of a country or period under discussion, and try to give a rapid sketch of the literature, the state of sciences, the arts, its commerce and agriculture, which will lead to touch upon subjects more properly belonging to the other science for which you have appointed me. As I shall have frequent occasion to speak on the subject of politics, so will the introduction of history often lead me to topics of political economy, and in the same way shall I make them the subject of separate instruction.

Political Economy, treated as a scientific whole, is of comparatively late origin, though various subjects, belonging to its province, have at different times been treated even in remote periods. There are still many persons, who “do not believe in political economy,” and will of course not allow it the rank of a science, as a few years ago, when Werner broke a new path for mineralogy, many people, and most distinguished ones among them, smiled at the idea of calUng mineralogy a science, or believing in the possibility of systematically and scientifically treating what they called “the stones.”* Nay, there are still persons who deny that geology be a science. Whether political economy be a science or not, it is not here the place to discuss, though it is difficult to see why the difference of opinion and contradictory results at which some, though few, political economists have arrived, should any more deprive their study of the character of a science, than natural philosophy, metaphysics, medicine or theology; nor is it required that any one should believe in political economy. The simple question is whether the subjects it considers as peculiarly belonging to its forum, are susceptible of scientific inquiry, and whether they are of sufficient importance to require investigations of this kind and to be taught in our college.

* See among others some of the letters written by Herder to Goethe, who, it is well known, was an ardent mineralogist and geologist to the end of his life.

I believe it is easy to show that the same relation, which physiology of the human body bears to anthropology and philosophy in general, subsists between political economy and the higher branches of politics — or, political economy has precisely all the importance with regard to society, which the material life bears throughout to the moral and intellectual world. Political economy might be defined by being the science which occupies itself essentially with the material life of society — with production, exchange and consumption; and no one can possibly have thrown a single glance at these subjects, and deny that theystand in the most intimate connection with the moral and intellectual interests of a nation.

If subjects of such universal influence and so extensively affecting the existence of human beings, as labor, wages, capital, interests, commerce, loans, banks, &c. are not matter of sufficient interest for inquiry, then few things are; if they do not depend upon general causes cognizable by the reason of man, then every thing around us is chance, and what is very striking, most regular chance, for it would be strange indeed that in the United States, for instance, many millions of people agree, without exchange of opinions, to pay throughout an immense territory about seventy-five cents for a day‘s work of a common laborer, and that in another immense country, at the north of Europe, many millions of people receive for the same work a few kopecks only, with a uniformity which is perfectly perplexing if the same general cause does not produce respectively this uniform effect. No believer in chance has ever dreamt that the regularity in form, process of growth and ripening of a species of plant be the results of mere chance. Though he might believe that the first cause was chance, he would always allow that by the original mixture of atoms or elements, certain laws were produced according to which nature now effects all the processes which strike us by their regularity; but in our own case, when we speak of human society, we shall at once change the test, and not believe that general, uniform and regular efiects must depend upon fixed causes!

If these causes can be discovered, and what earthly reason is there that they should not? then it is the duty of man to discover them. Having found them, he will be able to subject them to the same processes of reasoning which he applies to every mass of homogeneous facts. Judicious combination and cautious induction will enable him to reason from them and conclude upon new results. If, however, these inquiries are of general interest and importance, they are certainly so to a citizen, who takes an active and direct part in the making of the laws which govern his own society, for they touch upon matters which most frequently become the subject of legislation. It is necessary then that the youths be instructed in this science.

Political economy has not appeared under the most favorable train of circumstances. It is not its lot quietly to investigate a given subject, but it has to combat a series of systematized prejudices, which have extended their roots far and wide into all directions and deep into every class of society, for many centuries past — prejudices which are intimately connected with the interest of powerful classes.

Strange, that man should have seriously to debate about free trade any more than about free breathing, free choice of color of dress, free sleeping, free cookery, and should be obliged to listen to arguments, which, if true, would also prove that the cutting, clipping and shaving of trees, fashionable in the times of Louis XIV, produced most noble, healthful oaks. Still, so ancient is the prejudice, that even Strabo mentions the fact that the Cumæans did not levy any duties on merchandize, imported into their harbor, as a proof of their enormous stupidity. The transition is not easy from so deep-rooted a prejudice and whole systems of laws built upon it, to the natural, simple and uncorrupted state of things, in which man is allowed to apply his means as best he thinks, without fettering and cramping care from above, which is like the caresses of the animal in the fable — stifling.

Two different directions of scientific inquiry seem to be characteristic of our age — minute, extensive and bold inquiry into nature and her laws and life, and equally bold and shrewd examination of the elements and laws of human society, and all that is connected with its physical or moral welfare. Hence we see at once the human mind following two apparently opposite directions with equal ardor — history and political economy. No age has pursued with so much zeal the collection of every remnant and vestige, which may contribute to disclose to us the real state of former generations; and in no age have the principles upon which the success of the human species depends, been investigated with less reserve. Your Board of Trustees has appointed me for these two important sciences, and I feel gratified thus to be placed in a situation, in which I am able to contribute largely to the diffusion of two sciences, which are cultivaied with such intense activity by the age in which my lot has been cast.

Source: On history and political economy, as necessary branches of superior education in free states. An inaugural address, delivered in South Carolina college, before the governor and the legislature of the state, on Commencement day the 7th of December, 1835. By Francis Lieber, LL.D. Printed by order of the Board of trustees.  Pp. 23-26

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From Lieder’s Inaugural Lecture at Columbia College (1858)

…A wise study of the past teaches us social analysis, and to separate the permanent and essential from the accidental and superficial, so that it becomes one of the keys by which we learn to understand better the present. History, indeed, is an admirable training in the great duty of attention and the art of observation, as in turn an earnest observation of the present is an indispensable aid to the historian. A practical life is a key with which we unlock the vaults containing the riches of the past. Many of the greatest historians in antiquity and modern times have been statesmen; and Niebuhr said that with his learning, and it was prodigious, he could not have understood Roman history, had he not been for many years a practical officer in the financial and other departments of the administration, while we all remember Gibbon’s statement of himself, that the captain of the Hampshire militia was of service to the historian of Rome. This is the reason why free nations produce practical, penetrating and unravelling historians, for in them every observing citizen partakes, in a manner, of statesmanship. Free countries furnish us with daily lessons in the anatomy of states and society; they make us comprehend the reality of history. But we have dwelled sufficiently long on this branch.

As Helicon, where Clio dwelt, looked down in all its grandeur on the busy gulf and on the chaffering traffic of Corinth, so let us leave the summit and walk down to Crissa, and cross the isthmus and enter the noisy mart where the productions of men are exchanged. Sudden as the change may be, it only symbolizes reality and human life. What else is the main portion of history but a true and wise account of the high events and ruling facts which have resulted from the combined action of the elements of human life? Who does not know that national life consists in the gathered sheaves of the thousand activities of men, and that production and exchange are at all times among the elements of these activities?

Man is always an exchanging being. Exchange is one of those characteristics without which we never find man, though they may be observable only in their lowest incipiency, and with which we never find the animal, though its sagacity may have reached the highest point. As, from the hideous tattooing of the savage to our dainty adornment of the sea-cleaving prow or the creations of a Crawford, men always manifest that there is the affection of the beautiful in them —  that they are æsthetical beings; or as they  always show that they are religious beings, whether they prostrate themselves before a fetish or bend their knee before their true and unseen God, and the animal never, so we find man, whether Caffre, Phoenician or American, always a producing and exchanging being; and we observe that this, as all other attributes, steadily increases in intensity with advancing civilization.

There are three laws on which man’s material well being and, in a very great measure, his civilization are founded. Man is placed on this earth apparently more destitute and helpless than any other animal. Man is no finding animal —  he must produce. He must produce his food, his raiment, his shelter and his  comfort. He must produce his arrow and his trap, his canoe and his field, his road and his lamp.

Men are so constituted that they have far more wants, and can enjoy the satisfying of them more intensely, than other animals; and while these many wants are of a peculiar uniformity among all men, the fitness of the earth to provide for them is greatly diversified and locally restricted, so that men must produce, each more than he wants for himself, and exchange their products. All human palates are pleasantly affected by saccharine salts, so much so that the word sweet has been carried over, in all languages, into different and higher spheres, where it has ceased to be a trope and now designates the dearest and even the holiest affections. All men understand what is meant by sweet music and sweet wife, because the material pleasure whence the term is derived is universal. All men of all ages relish sugar, but those regions which produce it are readily numbered. This applies to the far greater part of all materials in constant demand among men, and it applies to the narrowest circles as to the widest. The inhabitant of the populous city does not cease to relish and stand in need of farinaceous substances though his crowded streets cannot produce grain, and the farmer who provides him with grain does not cease to stand in need of iron or oil which the town may procure for him from a distance. With what remarkable avidity the tribes of Negroland, that had never been touched even by the last points of the creeping fibres of civilization, longed for the articles lately carried thither by Barth and his companions! The brute animal has no dormant desires of this kind, and finds around itself what it stands in need of. This apparent cruelty, although a real blessing to man, deserves to be made a prominent topic in natural theology.

Lastly, the wants of men I speak of their material and cultural wants, the latter of which are as urgent and fully as legitimate as the former infinitely increase and are by Providence decreed to increase with advancing civilization; so that his progress necessitates intenser production and quickened exchange.

The branch which treats of the necessity, nature, and effects, the promotion and the hindrances of production, whether it be based almost exclusively on appropriation, as the fishery; or on coercing nature to furnish us with better and more abundant fruit than she is willing spontaneously to yield, as agriculture; or in fashioning, separating and combining substances which other branches of industry obtain and collect, as manufacture; or on carrying the products from the spot of production to the place of consumption; and the character which all these products acquire by exchange, as values, with the labor and services for which again products are given in exchange, this division of knowledge is called political economy — an unfit name; but it is the name, and we use it. Political economy, like every other of the new sciences, was obliged to fight its way to a fair acknowledgment, against all manners of prejudices. The introductory lecture which archbishop Whately delivered some thirty years ago, when he commenced his course on political economy in the university of Oxford, consists almost wholly of a defense of his science and an encounter with the objections then made to it on religious, moral, and almost on every ground that could be made by ingenuity, or was suggested by the misconception of its aims. Political economy fared, in this respect, like vaccination, like the taking of a nation’s census, like the discontinuance of witch trials.

The economist stands now on clearer ground. Opponents have acknowledged their errors, and the economists themselves fall no longer into the faults of the utilitarian. The economist indeed sees that the material interests of men are of the greatest importance, and that modern civilization, in all its aspects, requires an immense amount of wealth, and consequently increasing exertion and production, but he acknowledges that “what men can do the least without is not their highest need.”* He knows that we are bid to pray for our daily bread, but not for bread alone, and I am glad that those who bade me teach Political Economy, assigned to me also Political Philosophy and History. They teach that the periods of national dignity and highest endeavors have sometimes been periods of want and poverty. They teach abundantly that riches and enfeebling comforts, that the flow of wine or costly tapestry, do not lead to the development of humanity, nor are its tokens; that no barbarism is coarser than the substitution of gross expensiveness for what is beautiful and graceful; that it is manly character, and womanly soulfulness, not gilded upholstery or fretful fashion — that it is the love of truth and justice, directness and tenacity of purpose, a love of right, of fairness and freedom, a self-sacrificing public spirit and religious sincerity, that lead nations to noble places in history; not surfeiting feasts or conventional refinement. The Babylonians have tried that road before us.

* Professor Lushington in his Inaugural Lecture, in Glasgow, quoted in Morell’s Hist. and Crit. View of Specul. Phil. London, 1846.

But political economy, far from teaching the hoarding of riches, shows the laws of accumulation and distribution of wealth; it shows the important truth that mankind at large can become and have become wealthier, and must steadily increase their wealth with expanding culture.

It is, nevertheless, true that here, in the most active market of our whole hemisphere, I have met, more frequently than in any other place, with an objection to political economy, on the part of those who claim for themselves the name of men of business. They often say that they alone can know anything about it, and as often ask what is Political Economy good for? The soldier, though he may have fought in the thickest of the fight, is not on that account the best judge of the disposition, the aim, the movements, the faults or the great conceptions of a battle, nor can we call the infliction of a deep wound a profound lesson in anatomy.

What is Political Economy good for? It is like every other branch truthfully pursued, good for leading gradually nearer and nearer to the truth; for making men, in its own sphere, that is the vast sphere of exchange, what Cicero calls mansueti, and for clearing more and more away what may be termed the impeding and sometimes savage superstitions of trade and intercourse; it is, like every other pursuit of political science of which it is but a branch, good for sending some light, through the means of those that cultivate it as their own science, to the most distant corners, and to those who have perhaps not even heard of its name.

Let me give you two simple facts one of commanding and historic magnitude; the other of apparent insignificance, but typical of an entire state of things, incalculably important.

Down to Adam Smith, the greatest statesmanship had always been sought for in the depression of neighboring nations. Even a Bacon considered it self-evident that the enriching of one people implies the impoverishing of another. This maxim runs through all history, Asiatic and European, down to the latter part of the last century. Then came a Scottish professor who dared to teach, in his dingy lecture-room at Edinburgh, contrary to the opinion of the whole world, that every man, even were it but for egotistic reasons, is interested in the prosperity of his neighbors; that his wealth, if it be the result of production and exchange, is not a withdrawal of money from others, and that, as with single men so with entire nations the more prosperous the one so much the better for the other. And his teaching, like that of another professor before him the immortal Grotius went forth, and rose above men and nations, and statesmen and kings; it ruled their councils and led the history of our race into new channels; it bade men adopt the angels’ greeting: “Peace on earth and good will towards men,” as a maxim of high statesmanship and political shrewdness. Thus rules the mind; thus sways science. There is now no intercourse between civilized nations which is not tinctured by Smith and Grotius. And what I am, what you are, what every man of our race is in the middle of the nineteenth century, he owes it in part to Adam Smith, as well as to Grotius, and Aristotle, and Shakespeare, and every other leader of humanity. Let us count the years since that Scottish professor, with his common name, Smith, proclaimed his swaying truth, very simple when once pronounced; very fearful as long as unacknowledged; a very blessing when in action; and then let us answer, What has Political Economy done for man? We habitually dilate on the effect of physical sciences, and especially on their application to the useful arts in modern times. All honor to this characteristic feature of our age the wedlock of knowledge and labor; but it is, nevertheless, true that none of the new sciences have so deeply affected the course of human events as political economy. I am speaking as an historian and wish to assert facts. What I say is not meant as rhetorical fringe.

The other fact alluded to, is one of those historical pulsations which indicate to the touch of the inquirer, the condition of an entire living organism. When a few weeks ago the widely spread misery in the manufacturing districts of England was spoken of in the British house of lords, one that has been at the helm,** concluded his speech with an avowal that the suffering laborers who could find but half days’, nay, quarter days’ employment, with unreduced wants of their families, nevertheless had resorted to no violence, but on the contrary universally acknowledged that they knew full well, that a factory can not be kept working unless the master can work to a profit.

** Lord Derby, then in the opposition, and since made premier again.

This too is very simple, almost trivial, when stated. But those who know the chronicles of the medieval cities, and of modern times down to a period which most of us recollect, know also that in all former days the distressed laborer would first of all have resorted to a still greater increase of distress, by violence and destruction. The first feeling of uninstructed man, produced by suffering, is vengeance, and that vengeance is wreaked on the nearest object or person; as animals bite, when in pain, what is nearest within reach. What has wrought this change? Who, or what has restrained our own sorely distressed population from blind violence, even though unwise words were officially addressed to them, when under similar circumstances in the times of free Florence or Cologne there would have been a sanguinary rising of the “wool weavers,” if it is not a sounder knowledge and a correcter feeling regarding the relations of wealth, of capital and labor, which in spite of the absurdities of communism has penetrated in some degree all layers of society? And which is the source whence this tempering knowledge has welled forth, if not Political Economy?

True indeed, we are told that economists do not agree; some are for protection, some for free trade. But are physicians agreed? And is there no science and art of medicine? Are theologians agreed? Are the cultivators of any branch of knowledge fully agreed, and are all the beneficial effects of the sciences debarred by this disagreement of their followers? But, however important at certain periods the difference between protectionists and free traders may be, it touches, after all, but a small portion of the bulk of truth taught by Political Economy, and I believe that there is a greater uniformity of opinion, and a more essential agreement among the prominent scholars of this science, than among those of others excepting, as a matter of course, the mathematics….

Source: Francis Lieber, “History and Political Science, Necessary Studies in Free Countries” — an Inaugural Address delivered on the Seventeenth of February, 1858. New York: 1858. Pages 25-36.

Image Source: Portrait photograph of Professor Francis Lieber from the Brady-Handy photograph collection at the Library of Congress, Prints and Photographs Division. Colorized by Economics in the Rear-View Mirror.