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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.

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Economist Market Exam Questions Harvard Methodology

Harvard. Final exam questions for economic methods course. Carver, 1903-04

This semester-long course on methods of economic investigation taught by Thomas Nixon Carver was listed as one being “primarily for graduates”. Only the introductory course of the department was considered “primarily for undergraduates” while the bulk of course offerings were deemed appropriate for both graduate and undergraduate students. Judging from the questions, this course appears to have been little more than a leisurely trot through John Neville Keynes, The Scope and Method of Economics (1897, 2nd ed.) along with Cairnes’ Logical Method of Political Economy (1875, 2nd ed.).

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Related previous posts

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Course Enrollment

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

Total 11: 5 Graduates, 3 Seniors, 3 Radcliffe

Source: Harvard University. Report of the President of Harvard College, 1903-1904, p. 67.

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ECONOMICS 13
Mid-Year Examination. 1903-04

Discuss the following topics.

  1. The relation of economics and ethics.
  2. The departments of political economy.
  3. The fields for the observation of economic phenomena.
  4. The nature of an economic law.
  5. The use of hypotheses in economics.
  6. The relation of theoretical analysis to historical investigation.
  7. The place of diagrams and mathematical formulae in economics.
  8. The methods of investigating the causes of poverty.
  9. The methods of determining the effects of immigration on the population of the United States.
  10. The place of direct observation in economic study.

Source:  Harvard University Archives. Harvard University, Mid-year examinations 1852-1943. Box 7, Bound volume: Examination Papers, Mid-Years, 1903-04.

Image SourceHarvard Classbook 1906. Colorized by Economics in the Rear-View Mirror.

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George Mason Methodology Suggested Reading Syllabus

George Mason. Course readings for Economic Philosophy. Buchanan and Vanberg, 1990

 

This post is an experiment in transcription. The HOPE Center at Duke University has started recently to provide pdf scans of syllabi from Ed Tower’s Eno River Press collection and I wondered how easy it would be to use the text-recognition software in Adobe Acrobat Pro to extract digital versions of the syllabi. It turns out that at least for this initial attempt, tweaking and correction of the OCR text required considerably less blood, sweat and tears than a standard typed transcription would have. 

Like other members of the greater community of historians of economics, I eagerly await further scans from the Tower volumes by the HOPE Center. From time to time, I’ll convert a scanned syllabus to add to the collection of digital material posted at Economics in the Rear-view Mirror. Links to the original scans will be provided whenever available. 

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George Mason University
SPRING 1990

Economics 827: ECONOMIC PHILOSOPHY
James M. Buchanan, Viktor J. Vanberg

Purpose and theme:

The purpose of this course is to discuss some of the issues at the foundations of economics as a social science. It will cover topics like the following (the numbers behind the titles refer to the reading list):

— Economics as moral philosophy (1, 13, 15, 20).

— Welfare economics and political economy (2, 3, 4).

— Methodological and normative individualism (14, 22).

— Subjectivism and opportunity costs (9, 12, 30).

— Utilitarianism and contractarianism (5, 16, 18, 19, 24).

— Agreement in exchange, in politics and in science (10, 29).

— Liberty, voluntariness and efficiency (7, 26).

— Justice as fairness and distributive justice (6, 11, 21, 23, 24).

— Homo economicus, rational choice and rule-following (8, 25, 27).

— Economics and morality (17, 19, 28).

Organization:

The constituting meeting for this course will be held on January 23, 7:20 p.m., in room R 2600. The core part of this course will be taught during the two-weeks period February 19 through March 2 in the library of the center for Study of Public Choice, George’s Hall, from 8:30 a.m. to 11:00 a.m. (daily Mon. through Fri.).

Grading:

Grades will be determined on daily (one page) protocols during the ‘core-period’ and a longer (15-20 pages) paper on a subject to be chosen between student and instructor.

Reading List:

(A set of xerox-copies of the following titles will be available from Kinko’s Copies, University Mall).

  1. Albert, Hans “Knowledge and Decision” chpt. 3 in H. Albert Treatise in Critical Reason Princeton University Press 1985, 71-101.
  2. Buchanan, James M. “Social Choice, Democracy, and Free Markets” in Fiscal Theory and Political Economy Chapel Hill 1960, 75-89.
  3. — , — “Positive Economics, Welfare Economics, and Political Economy” in Fiscal Theory and Political Economy Chapel Hill 1960, 105-124.
  4. — , — “The Relevance of Pareto Optimality” in The Journal of Conflict Resolution 6, 1962, 341-354.
  5. — , — “Marginal Notes on Reading Political Philosophy” in J. M. Buchanan and G. Tullock The Calculus of Consent Ann Arbor 1965, 307-322.
  6. — , -— “Notes on Justice in Contract” in Freedom in Constitutional Contract Texas A&M University Press 1977, 123-134.
  7. — , — “Criteria for a Free Society: Definition, Diagnosis, and Prescription” in Freedom in Constitutional Contract Texas A&M University Press 1977, 287-299.
  8. — , — “ls Economics the Science of Choice?” in What Should Economists Do? Liberty Press 1979, 39-63.
  9. — , — “General Implications of Subjectivism in Economics” in What Should Economists Do?” Liberty Press 1979, 81-91.
  10. — , — “The Potential for Tyranny in Politics as Science” in Liberty, Market and State New York University Press 1985, 40-54.
  11. — , — “Rules for a Fair Game: Contractarian Notes on Distributive Justice” in Liberty, Market and State New York University Press 1985, 123-139.
  12. — , — “L.S.E. Cost Theory in Retrospect” in Economics Between Predictive Science and Moral Philosophy Texas A&M University Press 1987, 141-151.
  13. — , — “Political Economy and Social Philosophy” in P. Koslowski, ed., Economics and Philosophy, Tuebingen 1985.
  14. — , — “The Foundations for Normative Individualism” mimeographed, Center for Study of Public Choice.
  15. Buchanan, James and Gordon Tullock “The Politics of the Good Society,” Chpt. 20 in The Calculus of Consent Ann Arbor 1965, 297-306.
  16. Gauthier, David “On the Refutation of Utilitarianism” in H B. Miller and W. H. Williams (eds.) The Limits of Utilitarianism University of Minnesota Press 1982, 144-163.
  17. — , — “Maximization Constrained: The Rationality of Cooperation” in R. Campbell and L. Sowden (eds.) Paradoxes of Rationality and Cooperation Vancouver 1985, 75-93.
  18. Hahn, Frank “On Some Difficulties of the Utilitarian Economist” in A. Sen and B. Williams (eds.) Utilitarianism and Beyond Cambridge University Press 1982, 187-198.
  19. Harsanyi John C. ”Morality and Social Welfare” chpt. 4 in J. C. Harsanyi Rational Behavior and Bargaining Equilibrium in Games and Social Situations Cambridge University Press 1977, 48-64.
  20. Hayek, Friedrich A. “Kinds of Rationalism” in F. A. Hayek Studies in Philosophy, Politics and Economics The University of Chicago Press 1967, 82-95.
  21. — , — “The Atavism of Social Justice” in F. A. Hayek New Studies in Philosophy, Politics, Economics and the History of Ideas The University of Chicago Press 1978, 57-68.
  22. Lachmann, Ludwig M. “Methodological Individualism and the Market Economy” in L. M. Lachmann Capital, Expectations, and the Market Process Kansas City 1977, 149-165.
  23. Nozick, Robert “Distributive Justice” chpt. 7 in R. Nozick Anarchy, State, and Utopia New York 1974, 149-164 + 183-189.
  24. Rawls, John “Justice as Fairness” chpt. 1 in J. Rawls A Theory of Justice Harvard University Press 1971, 3-27.
  25. Sen, Amartya “Behaviour and the Concept of Preference” in J. Elster (ed.) Rational Choice Basil Blackwell 1986, 60-81.
  26. Vanberg, Viktor “Individual Choice and Institutional Constraints – TheNormative Element in Classical and Contractarian Liberalism” in Analyse & Kritik Vol. 8, 1986, 113-149.
  27. — , — “Rational Choice, Rule-Following and Institutions” mimeographed, Center for Study of Public Choice, 1989, 49pp.
  28. Vanberg, Viktor and James M. Buchanan “Rational Choice and Moral Order” in Analyse & Kritik 10, 1988, 138-160.
  29. Vanberg, Viktor and James M. Buchanan “Interests and Theories in Constitutional Choice” in Journal of Theoretical Politics 1, 1989, 49-62.
  30. Wiseman, Jack “General Equilibrium or Market Process: An Evaluation” in J. Wiseman Cost, Choice and Political Economy Edward Elgar 1989, 213-233.

Readings suggested for further study:

Buchanan, James M. Cost and Choice — An Inquiry in Economic Theory Chicago 1969.

— , — Freedom in Constitutional Contract Texas A&M University Press 1977.

— , — Economics — Between Predictive Science and Moral Philosophy Texas A&M University Press 1987.

Gauthier, David Morals By Agreement Oxford: Clarendon Press 1986.

Gray, John Liberalism Open University Press 1986.

Hayek, Friedrich A. Law, Legislation and Liberty University of Chicago Press 1974, 1976, 1979 (three volumes).

— , — The Fatal Conceit — The Errors of Socialism London: Routledge 1988 (Vol. 1 of The Collected Works of Friedrich August Hayek).

Nozick, Robert Anarchy, State, and Utopia New York: Basic Books 1974.

Rawls, John A Theory of Justice Harvard University Press 1971.

Vanberg, Viktor Morality and Economics — De Moribus Est Disputandum, New Brunswick: Transaction Books 1988 (Social Philosophy and Policy Center, Original Papers No. 7).

Source: Transcribed from the images scanned from the Eno River Press volumes of syllabuses of economics coursescompiled and published by Ed Tower that he donated to the History of Political Economy (HOPE) Center at Duke University.

Image Sources: Buchanan portrait from the Nobel prize website. Vanberg portrait from the Walter Eucken Institut website.

Categories
Methodology

University College London. Lecture on the future of political economy. Jevons, 1876

 

William Stanley Jevons used the opportunity of his inaugural lecture as Professor of Political Economy at University College London to muse on the future of political economy using the discussion at the Centennial Celebration by the London Political Economy Club of the publication of The Wealth of Nations for his point of departure. He positions himself in the Methodenstreit as an eclectic advocate of formal theoretical methods who gladly includes historical and statistical methods in the economist’s toolbox. The fault of the partisans of induction that Jevons sees are their claims that historical observation is not just necessary in the search for valid economic laws but that it alone is sufficient. In many ways like Carl Menger, Jevons only argues for the necessity of abstraction and deduction: “In these and many other cases, people argue, more or less consciously, that because a certain thing is true or useful, therefore other things are not true or not useful. “

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THE FUTURE OF POLITICAL ECONOMY
W. Stanley Jevons

Introductory Lecture at the opening of the Session 1876-7, at University College, London, Faculty of Arts and Laws.

The year 1876 is remarkable as being the hundredth anniversary of at least two important events. On the other side of the Atlantic, the Americans are celebrating the birth of a great nation. On this side of the water we ought to be celebrating the publication of a great book — a book to which we owe, in as great a degree as to any other circumstance, the wealth and prosperity of this kingdom. It is curious to observe, indeed, that these two centenaries are in a certain respect antithetic to each other. While we attribute our wealth to the establishment of the free trade principles which Smith advocated, the American Government yet maintains a fiscal system direct and avowed antagonism to those principles.

The enormous wealth of the United States has been created by the freedom and energy of internal trade acting upon natural resources of unexampled richness. It cannot for a moment be doubted that their wealth would be far greater still were external commerce in the States as free as internal commerce. To us, dwelling and working in this comparatively speaking very small island, endowed with no remarkable natural resources, except coal and iron, —to us, the freedom of external commerce is everything. This freedom we may properly attribute to the writings of Adam Smith, even more than to the labours of Gladstone, or Cobden, or Bright, or any of the great statesmen who actually carried the doctrines of Smith into effect.

We ought, therefore, to be celebrating the publication of the “Wealth of Nations,” and the memory of its author; but are we doing so? With a single exception, I am unacquainted with any public ceremony, or anything tending to mark this as a centennial year in Great Britain. Perhaps this is because we are not a people accustomed to commemorations of the sort. If I recollect rightly, even the Shakespearean jubilee was rather a failure. However this may be, there has been one exception, and that was a most suitable commemoration of Adam Smith. On the 31st of May last, the Political Economy Club held a grand dinner and a special discussion in honour of the hundredth anniversary of the publication of the “Wealth of Nations.”

Probably, when people saw this dinner described in the newspapers, their first thought was, “What is the Political Economy Club? We never heard of it before.” I may, therefore, explain briefly, that the Political Economy Club has pursued an inconspicuous, but very useful career for more than half a century. Whether its continued existence be due to the excellence of its monthly dinners, — in respect of which the club does not seem to study economy — or to the interest of the economical debates which follow each dinner, I will not attempt to decide. Certain it is, however, that the club was founded in the year 1821 by Ricardo, Malthus, Tooke, James Mill, Grote, Cazenove, and other distinguished men, and that since its foundation it has included as members nearly all English political economists. John Stuart Mill especially was, for many years, a leading member, and first propounded at its table the doctrines advocated in his economical works.

It was no doubt most suitable that such a body should celebrate the establishment in England of the science they cultivate, and the centenary dinner held last May was in some respects a very remarkable one. Mr. Gladstone was in the chair, with Mr. Lowe on the one hand, and M. Léon Say, the present French Minister of Finance, on the other hand. The company included a body of statesmen, economists, and statists, British, Continental, and American, such as are seldom seen together. It is true that the statesmen had it mostly their own way, and in the presence of Gladstone and Lowe, and a real French Minister of Finance, the company appeared to care little what mere literary economists thought about Adam Smith. But I shall on the present occasion be so bold as incidentally to review and criticize some of the opinions which were put forth at the dinner, a full and carefully revised report of the speeches having been printed by Messrs. Longman, under the superintendence of the committee of the club.

Mr. Lowe opened the debate in a most interesting survey and eulogium of Adam Smith and his works. He concluded with some remarks upon the results which have followed from Smith’s writings, and upon what yet remains to be achieved by political economy. I was much struck with the desponding tone in which Mr. Lowe spoke of the future of the science I have the honour to teach in this college. He seems to think that the work of the science is to a great extent finished. He said: —

“I do not myself feel very sanguine that there is a very large field— at least, according to the present state of mental and commercial knowledge— for political economy, beyond what I have mentioned; but I think that very much depends upon the degree in which other sciences are developed. Should other sciences relating to mankind, which it is the barbarous jargon of the day to call Sociology, take a spring and get forward in any degree towards the certainty attained by political economy, I do not doubt that their development would help in the development of this science; but at present, so far as my own humble opinion goes, I am not sanguine as to any very large or any very startling development of political economy. I observe that the triumphs which have been gained, have been rather in demolishing that which has been found to be undoubtedly bad and erroneous, than in establishing new truth; and imagine that, before we can attain new results, we must be furnished from without with new truths to which our principles may be applied. The controversies which we now have in political economy, although they offer a capital exercise for the logical faculties, are not of the same thrilling importance as those of earlier days; the great work has been done.”

I am far from denying that there is much to support, or at any rate to suggest, this view of the matter. Some of the greatest reforms which economists can point out the need of have been accomplished, and there is certainly no single work to be done comparable to the establishment of free trade. But this does not prevent the existence of an indefinitely great sphere of useful work which economists could accomplish, if their science were adequate to its duties. To a certain extent, again, I agree with Mr. Lowe that there is much in the present position of our science to cause despondency. A very general impression to this effect seems to exist. Some of the newspapers hinted in reference to the centenary dinner that the political economists had better be celebrating the obsequies of their science than its jubilee. The Pall-Mall Gazette especially thought that Mr. Lowe’s task was to explain the decline, not the consummation, of economical science. Perhaps with many people the wish was father of the thought. I am aware that political economists have always been regarded as cold-blooded beings, devoid of the ordinary feelings of humanity — little better, in fact, than vivisectionists. I believe that the general public would be happier in their minds for a little time if political economy could be shown up as imposture, like the greater part of what is called spiritualism.

It must be allowed, too, that there have been for some years back premonitory symptoms of disruption of the old orthodox school of economists. Respect for the names of Ricardo and Mill seems no longer able to preserve unanimity. J. S. Mill himself, in the later years of his life, gave up one of the doctrines on which he had placed much importance in his works. One economist after another — Thornton, Cairnes, Leslie, Macleod, Longe, Hearn, Musgrave — have protested against some one or other of the articles of the old Ricardian creed.

At the same time foreign economists, such as De Laveleye, Courcelle-Seneuil, Cournot, Walras, and others, have taken a course almost entirely independent of the predominant English school. So far has this discontent gone, that Mr. Bagehot has been induced to re-examine the fundamental postulates of economy from their very foundation, in his most acute papers published in the Fortnightly Review. He remarks (p. 216, Feb. 1, 1876): —

“Notwithstanding these triumphs, the position of our political economy is not altogether satisfactory. It lies rather dead in the public mind. Not only it does not excite the same interest as formerly, but there is not exactly the same confidence in it. Younger men either do not study it, or do not feel that it comes home to them, and that it matches with their most living ideas … They ask, often hardly knowing it, will this ‘Science,’ as it claims to be, harmonize with what we now know to be sciences, or bear to be tried as we now try sciences? And they are not sure of the answer.”

In short, it comes to this — that one hundred years after the first publication of the “Wealth of Nations” we find the state of the science to be almost chaotic. There is certainly less agreement now about what political economy is than there was thirty or fifty years ago. Under these circumstances, I will now draw your attention for a short time to the apparently rival sects which seem likely to arise from the break up of the old Ricardian school.

In the first place, it is impossible to ignore the fact that there has been gradually rising into prominence a school of writers who take a very radical view of the reforms required in our science. They call in question the validity even of the deductive method on which Smith mainly relied. They hold that the science must be entirely recast in method and materials, and that it must take the form of an historical or archaeological science. At the centenary dinner this view of the matter was boldly stated by one of the most distinguished of European economists — namely, M. de Laveleye. His own words, translated into English, will best explain his opinions: —

“It is principally at this point that there has recently arisen a division in the ranks of economists. Some, the old school, whom, for want of a better name, I will call the Orthodox School, believe that everything regulates itself by the effect of natural laws. The other school, which its adversaries have named the Socialists of the Chair, the ‘Katheder-socialisten,’ but which we ought rather to call the Historical School, or as the Germans say, the ‘Realist School;’ this school holds that distribution is governed in part doubtless by free contract; but also, and still more, by civil and political institutions, by religious beliefs, by moral sentiments, by custom and historical tradition. You see that there opens itself here an immense field of studies, comprehending the relations of political economy with morals, justice, right, religion, history, and connecting it to the ensemble of social science. That in my humble opinion is the actual mission of political economy. This is the path pursued by nearly all German economists, several of whom have a European reputation, such as Rau, Roscher, Knies, Nasse, Schäffle, Schmoller; in Italy by a group of writers alaready well known, Minghetti, Luzzati, Forti; in France, by Wolowski, Lavergne, Passy, Courcelle-Seneuil, Leroy-Beaulieu; and in England by authors, whom it is unnecessary to name or estimate here, because you know them better than I.”

There is certainly no difficulty in mentioning a series of distinguished English economists who have shown a propensity to the historical treatment of the science. To begin with, A. Smith would no doubt be claimed by the historical school, for there is a strong historical element running through his book. Not only does “The Wealth of Nations” contain special historical inquiries like that concerning the value of silver, the chapter on agricultural systems, or the whole book upon “The Different Progress of Opulence in Different Nations,” but the whole work teems with concrete illustrations or verifications drawn from the history of many countries. As has been well remarked, Adam Smith had some of the many-sidedness at which all have wondered in Shakespeare, and it is singular testimony to the completeness of his method, that while Mr. Lowe claimed him, and I think correctly, as a deductive economist, another speaker. Professor Rogers, held him to be the practical Bacon of economical science. The fact, I believe, is that Smith combined deductive reasoning with empirical verification in the manner required by the complete inductive method.

But to proceed, we find that the essay of Malthus on Population far from being, as many people probably suppose, a collection of rash generalisations and hypotheses, consists mainly of a most careful inquiry into historical and statistical facts concerning the numbers and conditions of mankind in all parts of the world. It is a model of inductive inquiry so far as information was available in his day. The essay of Richard Jones on the “Distribution of Wealth and the Forms of Land Tenure in Different Countries,’’ is a far less celebrated book, but displays the same careful spirit of inquiry into the past or present condition of men. Mr. Samuel Laing, again, in his well-known and most interesting works, takes the same position, and has studied upon the spot the economy of Norway, Sweden, France, Prussia, and Switzerland, somewhat in the manner that Arthur Young studied France and Great Britain in the last century. The general conclusion of Mr. Laing is that every country has a political economy of its own, suitable to its own physical circumstances and its own national character.

Passing over the minor works of Banfield, Burton, and others, it is impossible to overlook the recent admirable research of Professor Thorold Rogers, “On the History of Agriculture and Prices in England, from 1259 to 1400” (published by the Clarendon Press). [Volume I; Volume II] In this book Professor Rogers has certainly pursued the historical and inductive method with unbounded industry and remarkable success. He has made us better acquainted with the economy of the fourteenth and fifteenth centuries than we are with that of the eighteenth. In the fascinating works of Sir Henry Maine, too, especially his last work on “The Early History of Institutions,” there is much historical inquiry bearing upon economical science.

Perhaps the most recent of all declarations in favour of the inductive study of the laws of wealth, is that of Sir George Campbell, who in his inaugural address as President of the Economical and Statistical Section of the British Association, at the late Glasgow meeting, spoke as follows:—

“There was a time when it seems to have been supposed that political economy was a science regulated by natural laws, so fixed that safe results could be attained by deductive reasoning. But since it has become apparent that men do not in fact invariably follow the laws of money-making, pure and simple, that economic action is affected by moral causes which cannot be exactly measured it becomes more and more evident, that we cannot safely trust to a chain of deduction; we must test every step by an accurate observation of facts, and induction from them.”

Upon this and other statements I shall have to make some remarks presently.

It is, however, Professor Cliffe Leslie who has placed himself at the front of the inductive and historical school of economists in this country, by the thoroughness as well as the ability of the essay in which he declares his revolt from the old orthodox school. In a remarkable paper, printed in the Dublin University essays published under the title of “Hermathena,” he calls in question altogether the validity of the deductive reasoning which Mr. Lowe considered the most valuable feature in the “Wealth of Nations.” He considers the generally-recognised laws of economy to be rude generalisations, obtained by a superficial and unphilosophical process of abstraction. No attempt, he thinks, has been made to measure the relative force of economical principles in different states of society, or to allow for multitudes of disturbing causes.

“Had the actual operation of the motives in question,” he says, “been investigated, it would have been seen to vary widely in different states of society, and under different conditions. The love of distinction, or of social position, for example, may either counteract the desire of wealth, or greatly add to its force as a motive to industry and accumulation. It may lead one man to make a fortune, another to spend it. At the head of the inquiry into the causes on which the amount of the wealth of nations depends is the problem — what are the conditions which direct the energies and determine the actual occupations and pursuits of mankind in different ages and countries?”….
‘‘Enough,” he continues, “has been said in proof that the abstract à priori and deductive method yields no explanation of the causes which regulate either the nature or the amount of wealth…. The truth is, that the whole economy of every nation, as regards the occupations and pursuits of both sexes, the nature, amount, distribution, and consumption of wealth, is the result of a long evolution, in which there has been both continuity and change, and of which the economical side is only a particular aspect or phase. And the laws of which it is the result must be sought in history, and the general laws of society and social evolution.”

These extracts indicate the line of thought by which Professor Leslie has been led to regard the general theorems of Ricardo as mere “guesses,” and the deductive theory of political economy as barren, if not false. Now I am far from thinking that the historical treatment of our science is false or useless. On the contrary, I consider it to be indispensable. The present economical state of society cannot possibly be explained by theory alone. We must take into account the long past, out of which we are constantly emerging. Whether we call it sociology or not, we must have some scientific treatment of the principles of evolution as manifested in every branch of social existence. Accordingly, M. de Laveleye, Professor Cliffe Leslie, or M. Lavergne, may very properly do for political economy what Sir Henry Maine has done for jurisprudence — namely, show that every law, custom, or social fact is the product of the past, historical or forgotten.

But it is surprising how often men, even of the highest powers, fall into a logical fallacy which has not, I think, been dubbed with any special name, but might fitly be called the fallacy of exclusiveness. There are too many in the present day who advocate the teaching of physical science, and imply in the mode of their advocacy that moral, classical, or other studies are to be discountenanced. It is most common to find people speaking of inductive reasoning, as if it were entirely distinct and opposite to deductive reasoning, the fact being, however, as I believe, that deduction is a necessary element of induction.

In these and many other cases, people argue, more or less consciously, that because a certain thing is true or useful, therefore other things are not true or not useful. Some tendency of this sort might be suspected by the reader of the last two chapters of Sir Henry Maine’s “Early History of Institutions,” in which he discusses the relation of his own historical treatment of jurisprudence to the systems of Hobbes, Bentham, and especially Austin. Sir Henry Maine has conclusively shown that the investigation of the origin and development of law is essential to the understanding of the jurisprudence of any people; but it does not follow, and I do not understand Sir Henry Maine to assert, that an abstract and perfect scheme of jurisprudence, like that which Austin gave to the world in this college, is therefore devoid of truth and usefulness. Now the case of political economy is exactly parallel to this.

I cannot easily conceive any more interesting or useful subject of study than that which Professor Leslie advocates and engages in. It is absolutely essential that we should view the present by the light of the past; but I differ from him entirely when he holds that historical political economy is to destroy and replace the abstract theory which has previously held the place of the science. Does it follow that because palaeontology is now established as an all-important science of an historical character, therefore animal physiology, or the chemistry of animal substances, is false? Any group of objects may be studied, either as regards the laws of action of their component parts, irrespective of time, or as regards the successive forms produced from time to time under the action of those laws. Now the laws of political economy treat of the relations between human wants and the available natural objects and human labour by which they may be satisfied. These laws are so simple in their foundation that they would apply, more or less completely, to all human beings of whom we have any knowledge. The laws of property are very different in different countries and states of society. They seem to be in a very rudimentary state among the Eskimo. According to Dr. Rinks, if one Eskimo man has two boats and another has none, the latter has a right to borrow one of the two boats; and it is further said that it is not the custom among the Eskimo to return borrowed articles. Now this is of course a very different state of things from what obtains among us. Nevertheless we can trace in this transaction of the borrowed boat the simple principles which are at the basis of economy. The most fundamental of its laws is that of Senior and Banfield —namely, that human wants are limited in extent. One boat is very useful, if not essential, to an Eskimo; a second boat is much less useful to a man who has already one boat, but it is highly useful if passed into the hands of a boatless neighbour. The elements of value are present here as in the most complicated operations of our corn or stock exchanges. I should not despair of tracing the action of the postulates of political economy among some of the more intelligent classes of animals. Dogs certainly have strong though perhaps limited ideas of property, as you will soon discover if you interfere between a dog and his bone.

I come to the conclusion, then, that the first principles of political economy are so widely true and applicable, that they may be considered universally true as regards human nature. Historical political economy, so far from displacing the theory of economy, will only exhibit and verify the long-continued action of its laws in most widely different states of society. M. de Laveleye and Professor Leslie may succeed in constituting a new science, but they will not utterly revolutionise and destroy the old one in the way they seem to suppose.

The fact is it will no longer be possible to treat political economy as if it were a single undivided and indivisible science. The advantages of the division of labour are as great and indispensable in the pursuit of knowledge as in manual industry; and it is out of the question that political economy alone should fail to avail itself of these advantages. Differentiation, as Mr. Spencer would say, must go on. I should be afraid of tiring you if I were to attempt to trace out in detail the several divisions into which political economy will naturally fall apart. Not only will there be a number of branches, but there are actually two or three different ways in which the division will take place.

There is, firstly, the old distinction of the laws of the science, according as they treat of the production, exchange, distribution, or consumption of wealth. In this respect economy may be regarded as an aggregate of two or more different sciences, there being, in fact, little connection between the principles which should guide us in production, and those which apply in distribution or consumption.

To readers of J. S. Mill’s “Principles of Political Economy,” indeed, it may sound strange to hear of consumption as one of the chief branches of the science. Though named last, as being last in the order of time, consumption is evidently the most important of the processes through which commodities pass, because things are only produced in order that they may be consumed usefully. It is unaccountable, then, and quite paradoxical, that English economists should, with few exceptions, ignore the most important branch of their own science, especially after it has been duly treated by J. B. Say, Storch, Courcelle-Seneuil, and many other continental writers, as well as by the excellent Australian economist, Professor Hearn.

Passing now to a second aspect, political economy will naturally be divided according as it is abstract or concrete. The theory of the science consists of those general laws which are so simple in nature, and so deeply grounded in the constitution of man and the outer world, that they remain the same throughout all those ages which are within our consideration. But though the laws are the same they may receive widely different applications in the concrete. The primary laws of motion are the same, whether they be applied to solids, liquids, or gases, though the phenomena obeying those laws are apparently so different. Just as there is a general science of mechanics, so we must have a general science or theory of economy. Here, again, there is a division of opinion. There are those who think that, dealing as the science does with quantities, economy must necessarily be a mathematical science, if it is anything at all. There are those, on the other hand, who, like the late Professor Cairnes, contest, and some who even ridicule, the notion of representing truths relating to human affairs in mathematical symbols. It may be safely asserted, however, that if English economists persist in rejecting the mathematical view of their science, they will fall behind their European contemporaries. How many English students, or even professors, I should like to know, have sought out the papers of the late Dr. Whewell, printed in the Cambridge Philosophical Transactions, [Mathematical Exposition of some Doctrines of Political Economy. Read March 2 and 14, 1829;  Mathematical Exposition of some of the Leading Doctrines in Mr. Ricardo’s “Principles of Political Economy and Taxation.” Read April 18 and May 2, 1831] in which he gives his view of the mode of applying mathematics to our science? What English publisher, I may ask again, would for a moment entertain the idea of reprinting a series of mathematical works on political economy? Yet this is what is being done in Italy by Professor Gerolamo Boccardo, the very learned and distinguished editor of the “Nuova Enciclopedia Italiana.” Professor Boccardo has also prefixed to the series a remarkable treatise of his own on the application of the quantitative method to economic and social science in general. This series, which forms the third portion of the well-known “Bibliotheca Economista,” will be completed with an Italian translation of the works of Professor Léon Walras, now Rector of the Academy of Lausanne, who has in recent years independently established the fact that the laws of supply and demand, and all the phenomena of value, may be investigated algebraically and illustrated geometrically. From inquiries of this sort the curious conclusion emerges, that equilibrium of exchange of goods resembles in mathematical conditions the equilibrium of weights upon a lever of the first order. In the latter case one weight multiplied by its arm must exactly equal the other weight multiplied by its arm. So, in an act of exchange, the commodity given multiplied by its degree of utility must equal the quantity of commodity received multiplied by its degree of utility. The theory of economy proves to be, in fact, the mechanics of utility and self-interest.

Now, too, that attention is at last being given to the mathematical character of the science, it is becoming apparent that a series of writers in France, Germany, Italy, and England have made attempts towards a mathematical theory. Their works have been almost unnoticed, or, at any rate, forgotten, mainly on account of the prejudice against the line of inquiry they adopted. It is much to be desired that some competent mathematician and economist should seek these works out and prepare a compendious abstract of their contents, in the manner of Mr. Todhunter’s valuable histories of mathematical science. On the present occasion I cannot do more than mention the names of some of the principal writers referred to, such as Lang, Kroeneke, Buquoy, Dupuit, Von Thünen, Cazaux, Cournot, and Francesco Fuoco, on the Continent, and Whewell, Tozer, Lardner, Perronet Thompson, Fleming Jenkin, Alfred Marshall, and probably others, in Great Britain.

So much for the theory of economy which will naturally be one science, remaining the same throughout its applications, though it may be broken up into several parts, the theories of utility, of exchange, of labour, of interest, &c., partly corresponding to the old division of the science into the laws of consumption, exchange, distribution, production, and so forth. Concrete political economy, however, can hardly be called one science, but already consists of many extensive branches of inquiry. Currency, banking, the relations of labour and capital, those of landlord and tenant, pauperism, taxation, and finance, are some of the principal portions of applied political economy, all involving the same ultimate laws, manifested in most different circumstances. In a subject of such appalling extent and complexity as currency, for instance, we depend upon the laws of supply and demand, of consumption and production of commodities as applied to the precious metals or other materials of money. In the science of banking and the money market, we have a very difficult application of the same laws to capital in general. This separation of the concrete branches of the science is, however, sufficiently obvious and recognised, and I need not dwell further upon it. The general conclusion, then, to which I come is, that political economy must for the future be looked upon as an aggregate of sciences. A hundred years ago, it was very wise of A. Smith to attempt no sub-division, but to expound his mathematical theory (for I hold that his reasoning was really mathematical in nature) in conjunction with concrete applications and historical illustrations. He produced a work so varied in interest, so beautiful in style, and so full of instruction, that it attracted many readers, and convinced those that it attracted. But economists are no more bound to go on imitating Adam Smith in the accidental features of his work, than metaphysicians are bound to write in the form of platonic dialogues, or poets in the style of the Shakespearean drama. With the progress of industry, how many hundreds or even thousands of trades have sprung up since Smith wrote! With the progress of knowledge, how many sciences have been created, and sub-divided, again and again! The science of electricity has been almost entirely discovered since 1776, yet now it has its abstract mathematical theories, its concrete applications, and its many branches, treating of frictional or static electricity, dynamic electricity or galvanism, electro-chemistry, electro-magnetism, magnetism, terrestrial magnetism, atmospheric electricity, and so forth. Within the same century chemistry, if not born, has grown, and is now so vast a body of facts and laws that professors are appointed to teach different parts of it. Yet the political economist is expected to teach all parts of his equally extensive and growing science, and is lucky if he escape having to profess also the mental, metaphysical, and moral sciences generally.

Nor can I doubt that in the future new developments of the science of economy must take place. Whether it be a science or not, or one science or many sciences, there is certainly an immense work to be done by this or some closely related branches of knowledge. If necessity is the mother of invention, as people are so fond of saying, then many new sciences ought soon to be invented. When listening to the speeches at the centenary dinner, I was much struck with the contracted view which seemed to be entertained of the work remaining to be accomplished by economists. Mr. Gladstone spoke as follows: —

‘‘I am bound to say that this society has still got its work before it. … I do not mean to say that there is a great deal remaining to be done here in the way of direct legislation, yet there is something. It appears to me at least, that perhaps the question of the currency is one in which we are still, I think, in a backward condition; our legislation having been confined in the main to averting great evils rather than to establishing a system which, besides being sound, would be complete and logical. With that exception perhaps, not much remains in the province of direct legislation.”

Mr. Lowe also, as shown in a quotation from his speech already given took a similarly desponding view of the powers and province of economy. To my mind, however, our whole social system seems to bristle with questions which will have to be decided one way or the other, and to a great extent upon economical grounds. Whether I look at the homes of the mass of the people, at workhouses, or hospitals, whether I consider the gambling of the Stock Exchange, the perplexity of bankers, anxious at one time to get money, at another to get rid of it, the endless discussions of workmen and masters, the diversion of the lands of the country from their proper uses, the scandalous waste of endowments, I cannot help feeling that the work before economists is more than ample.

I cannot better illustrate the need of more accurate economic knowledge in some directions, than by adverting to one of the principal points in debate at the centenary dinner. Mr. Newmarch, the treasurer of the club, threw in an apple of discord when he expressed a hope that political economy would lead to a restriction of the sphere of government. He said:—

“On one of the points mentioned by Mr. Lowe, with respect to political economy in its relation to the future, I am sanguine enough to think that there be what may be called a large negative development of political economy, tending to produce an important and beneficial effect; and that is, such a development of political economy as will reduce the functions of government within a smaller and smaller compass. The full development of the principles of Adam Smith has been in no small danger for some time past; and one of the great dangers which now hangs over this country, is that the wholesome spontaneous operation of human interests and human desires, seems to be in course of rapid supersession by the erection of one government department after another, by the setting up of one set of inspectors after another, and by the whole time of parliament being taken up in attempting to do for the nation those very things which, if the teaching of the man whose name we are celebrating to-day, is to bear any fruit at all, the nation can do much better for itself.”

Now it would not create much surprise if, on a point like this, professional economists should differ, like doctors. Accordingly my predecessor, Mr. Courtney, the honorary secretary of the club, took occasion to protest against the doctrines of the honorary treasurer being considered as those accepted by the club, at least as regards legislation upon land tenure. But it was very interesting to find that the practical statesmen were quite as much divided as the economists upon this point. While some supported Mr. Newmarch, one whom I can never help admiring for his firm consistency, and the inestimable benefits which he has conferred upon this country in the passing of the Education Act, namely Mr. W. E. Forster, took the exactly opposite view.

“I am strongly of the contrary opinion,” he said, “that we cannot undertake the laissez-faire principle in the present condition of our politics or of parties in parliament, or in the general condition of the country. I gather from Mr. Newmarch’s remarks that he is an advocate of the old laissez-faire principle. Well, if we were all Mr. Newmarches, if we had nothing to deal with in the country but men like ourselves, we might do this. But we have to deal with weak people; we have to deal with people who have themselves to deal with strong people, who are borne down, who are tempted, who are unfortunate in their circumstances of life, and who will say to us, and say to us with great truth: What is your use as a parliament if you cannot help us in our weakness, and against those who are too strong for us?”

Now it is impossible to doubt that the laissez-faire principle properly applied is the wholesome and true one. It is that advocated by Adam Smith, and it is in obedience to this principle that our tariff has been reduced to the simplest possible form, that the navigation laws have been repealed, that masters and labourers have been left free to make their own bargains about wages, and that a hundred other ingenious pieces of legislation have been struck out of the Statute Book. But does it follow that because we repeal old pieces of legislation we shall need no new ones? On the contrary, as it seems to me, while population grows more numerous and dense, while industry becomes more complex and interdependent, as we travel faster and make use of more intense forces, we shall necessarily need more legislative supervision. It has been well said, I think by Professor Hodgson, that the labourer need only ask of the statesman what Diogenes asked of Alexander, that he should stand out of his light. How, it was quite proper and reasonable that Alexander should not obstruct the light of Diogenes; but what if other people should come and stand in Diogenes’ light, or, overlooking anachronisms, street musicians should disturb his sleep and render study impossible, or, finally, carrying companies should carelessly convey gunpowder close behind his tub and blow it to bits; would Alexander have been justified in standing calmly by and quoting laissez-faire doctrines like those of the French economists and Adam Smith? I think not, and I believe that it will be found impossible to dispense with more and more minute legislation.

The numerous elaborate bills which each government of England has in late years attempted to pass, but generally without success, is the best indication of the needs felt. But I quite agree with Mr. Newmarch and Mr. Lowe that we should not proceed in this path of legislative interference without most careful consideration from a theoretical, as well as a practical, point of view, of what we are doing. If such a thing is possible, we need a new branch of political and statistical science which shall carefully investigate the limits to the laissez-faire principle, and show where we want greater freedom and where less. It seems inconsistent that we should be preaching freedom of industry and commerce at the same time that we are hampering them with all kinds of minute regulations. But there may be no real inconsistency if we can show the existence of special reasons which override the general principle in particular cases. I am quite convinced, for instance, that the great mass of the people will not have healthy houses by the ordinary action of self-interest. The only chance of securing good sanitary arrangements is to pull down the houses which are hopelessly bad, as provided by an Act of the present ministry, and most carefully to superintend under legislative regulations all new houses that are built.

I will go a step farther, and assert that the utmost benefits may be, and, in fact, are secured to us by extensions of government action of a kind quite unsanctioned by the laissez-faire principle. I allude to the provision of public institutions of various sorts —libraries, museums, parks, free bridges.

Community of property is most wasteful in some cases, as in the old commons, or unpreserved oyster beds; but these are cases of the community of production. Community of consumption, on the contrary, is often most economical. The same book in a public library may serve a hundred or five hundred readers as well as one. The principle may be illustrated by the case of watches and clocks. On reasonable suppositions I have calculated that a private watch costs people on the average about one-fifteenth part of a penny for each look at the time of day; but a great public clock is none the worse, however many people may look at it. As a general rule, I should say that the average cost of public clocks is not more than one-one hundred and fiftieth of a penny for each look, securing an economy of ten times. The same principle may, however, be called into operation in a multitude of cases, most notably, however, as regards the weather. A well-appointed meteorological office with a system of weather forecasts will be a necessary part of every government, and will secure the utmost advantages to the community at a trifling cost. I see no reason, again, why our streets and roads should, as a general rule, be fit only for passing along and getting out of as quickly as you can. With a trifling expenditure they might often be converted into agreeable promenades, planted with trees, and furnished with seats at the public cost. Our idea of happiness in this country at present seems to consist in buying a piece of land if possible, and building a high wall round it. If a man can only secure, for instance, a beautiful view from his own garden and windows, he cares not how many thousands of other persons he cuts off from the daily enjoyment of that view. The rights of private property and private action are pushed so far that the general interests of the public are made of no account whatever.

But the nicest discrimination will be required to show what the government should do, and what it should leave to individuals to do. I do not in the least underestimate the wastefulness of government departments, but I believe that this wastefulness may be far more than counterbalanced in some cases by the economy of public property.

I have said enough I think to suggest that there are still great possibilities for us in the future. It will not do in a few sweeping words to re-assert an old dictum of the last century, and to condemn some of the greatest improvements of the time because they will not agree with it. Instead of one dictum, laissez faire, laissez passer, we must have at least one science, one new branch of the old political economy. Were time available I might go on to show that this is by no means the only new branch of the science needed. We need, for instance, a science of the money market, and of commercial fluctuations, which shall inquire why the world is all activity for a few years, and then all inactivity; why, in short, there are such tides in the affairs of men. But I am quite satisfied if I have pointed out the need and the probable rise of one new branch, which is only to be found briefly and imperfectly represented in the works of Mill or other economists.

The future of political economy is not likely to be such a blank as some of the speakers at the centennial dinner would lead us to suppose. I hope that the Political Economy Club may exist long enough to hold their second centennial celebration of the “Wealth of Nations,” and that then the disrupted fragments into which political economy seems now to be falling will have proved themselves the seeds of a new growth of beneficent sciences.

Source: The Fortnightly Review, Vol. 20, No. 129 (November 1, 1876), pp. 617-631.

Source:  University of Manchester Library. Rylands Collection, Jevons Family Papers. Jevons Album. (Image Number JRL023256tr).

Note: The photograph comes from a collection of photographs of Australia, taken or compiled by William Stanley Jevons during the 1850s. Between 1854-1859 Jevons was employed as assayer at the Sydney mint and also carried out detailed social surveys of the city’s slums.

Categories
Columbia Economists Methodology New School

Columbia. Wesley Clair Mitchell’s remarks at Conference on Methods in Philosophy and the Sciences, 1937

 

In brief remarks intended to give non-economists a sense of the major methodological schools of economics at a 1937 conference at the New School for Social Research, Columbia professor Wesley Clair Mitchell distinguishes (i) orthodox economics dedicated to the understanding of the “pecuniary logic” of an agent within a capitalist market environment, (ii) institutional economics dedicated to the understanding of the evolution of economic organization, and (iii) a new, yet unnamed, type of economic theory that is clearly recognizable as being “behavioral economics”.

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Conference Program

CONFERENCE ON METHODS IN PHILOSOPHY AND THE SCIENCES

New School for Social Research
66 West 12th Street
New York City, N.Y.

Saturday, May 22 and Sunday, May 23, 1937

PROGRAM

Saturday, May 22

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

9:30 A.M. – 11:00 A.M – Registration, Room 24, Fee – $1.00

11:00 A.M. – 1:00 P.M. – First Session – Room 25

Chairman:  H. M. Kallen
Sidney Hook: The Current Philosophical Scene
John Dewey: A Possible Program for Libertarians and Experimentalists

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

2:30 – 4:00 P:M: – Second Session – Room 25

Brief statements on various departments of philosophy and the sciences: Their assumptions, methods, histories of the different schools, etc.

Ernest Nagel: The Position in LOGIC and METHODOLOGY
W.M. Malisoff: The Position in the PHYSICAL SCIENCES

DISCUSSION

4:00 – 5:30 P.M. – Second Session Continued – Room 25

S. E. Asch: The Position in PSYCHOLOGY
Wesley C. Mitchell: The Position in ECONOMICS

DISCUSSION

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

7:00 P.M. – DINNER, Gene’s 71 West 11th Street

Speakers: Bacchus, Dionysus, the Holy and other Spirits.
Appointment of Committees

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

Sunday, May 23

10:00 A.M. – 12 M. – Third Session, Room 25

Julius Lips: The Position in ANTHROPOLOGY
Meyer Schapiro: The Position in AESTHETICS
R. M. MacIver: The Position in SOCIOLOGY

DISCUSSION

12M. – 1:00 P.M. – Business Meeting

Election of Officers
Appointment of Permanent Committees
Unfinished Business
Adjournment

 

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Handwritten Remark by Wesley Clair Mitchell
Economics

 

Conference on Methods in Philosophy and the Social Sciences

New School
May 22, 1937

Economics like Philosophy and the other Social Sciences is still in the stage of development marked by the existence of fairly distinct schools of thought, or as I like better to say Types of Theory.

These schools differ in method. But these differences in method arise from differences in the problems which are taken as the central concern of economics.

 

Orthodox economics concerns itself primarily with what I like to call pecuniary logic — what it is to the economic advantage of men to do under a capitalistic organization — and the ‘purer’ this theory becomes the more exclusive concentration on that problem becomes.

In dealing with pecuniary logic, the investigator employs the method of imaginary experimentation. That is, he sets up certain assumptions and seeks to think out what it is to the interest of men to do under the conditions supposed.

The theory is developed by varying these assumptions with reference to such matters as the factors in theory set which are allowed to change the length of the period considered in the problem, the degree of competition supposed, elasticities of demand, relations between unit costs and volume of output.

How far the conclusions apply to the actual world depends upon the character of the assumptions made. The correspondence between these assumptions and actual conditions is seldom investigated.

Hence the doubts about this type of theory are usually doubts, not about the correctness of the reasoning, but about how far they apply to the facts we wish to understand. May have uncertain ‘operational significance’.  Defence.—tool makers. Question about applicability not relevant.

This description applies less strictly to Marshall than to many of his pupils, to the later Austrians, and to mathematical economists.

 

Institutional economics concerns itself primarily with the evolution of economic organization.

To Veblen this meant study of the widely prevalent habits of thought.

To Commons it means study of social controls over induced action—primarily through the courts.

Methods employed combine ethnology or historical research with reasoning about how men with a certain set of habits ingrained in them by the social environment in which they have grown up and by the work they do will behave or how the social controls over induced behavior may be expected to work out.

Again there may be doubts about how far the reasoning concerning economic behavior applies to actual conditions.

 

A third type of economics seems to be developing though not represented as yet by systematic theoretical treatises.

It endeavors to learn by analytic studies of actual behavior how men conduct themselves. Its methods are closer kin to those of animal psychologists than to those of introspective psychologists.

Though these men show no reluctance to account for their observations by supposing that their subjects know the rules of the money-making and money-spending games. Here they go beyond outlook[?] of physical science— Supposes men have purposes: that they plan for future .

Large use of the mass observations afforded by statistics

Considerable emphasis upon method[?] analysis of these records.

Not confined to statistics.

Doubts here concern representative value [or volume?] of the data

Trustworthiness of the mathematical analysis.

Extent to which factors that are not recorded statistically may modify conclusions drawn. Work of this sort is primarily monographic. Since social phenomena are interdependent, the question concerning what is left out is highly important

Can’t be applied well except when mass observations are available.

Promises to develop in future because statistical observation is covering a wider range.

Danger of ‘mere fact finding’ Dewey. Yes, but the facts may have deep ‘operational’ significance. Relation to questions of policy.

 

Source: Columbia University Archives. W. C. Mitchell Collection. Box 3, Folder “5/22/37 A”.

Image Source: Wesley Clair Mitchell from Albert Arnold Sprague’s and Claudia C. Milstead’s Genealogical Website.

 

Categories
Economists Methodology New School

New School for Social Research. Conference on Mathematics and Social Science, 1958

 

While searching for traces of Jacob Marschak in the digitized archives on-line for the New School for Social Research, I came across the following press release about a one-day conference on mathematization of the social sciences that featured R. Duncan Luce, William S. Vickrey, Tjalling C. Koopmans and Jacob Marschak among others. Perhaps papers or notes from the conference can be located by a fellow historian of social sciences?

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Conference on “The State of Mathematization of the Social Sciences”
Press release from The New School for Social Research

THE NEW SCHOOL FOR SOCIAL RESEARCH.
66 West Twelfth Street, New York 11, New York

From: Agnes de Lima
Director of Information
Regon 5-2700

FOR RELEASE

May 21, 1958
MAILED May 21 to city editors of dailies

 

Mathematical methods in the social sciences—in psychology, sociology and economics—will be discussed by nine leading scholars at an all-day conference to be held at the New School for Social Research, Sunday, May 25. Scholars drawn from Columbia, Harvard, Princeton and Yale will address the conference which meets at 10:30 A.M. and again at 2:30 P.M. Dr. Henry Margenau, Eugene Higgins Professor of Natural History and Physics at Yale, will preside.

Dr. William Gruen, associate professor of philosophy at New York University, will introduce the speakers. He described the conference, which bears the rather formidable title, “The State of Mathematization of the Social Sciences,” as in the nature of a progress report on the application of the game theory, and related theoretical techniques developed by the late distinguished mathematical physicist John von Neumann of Princeton University. Much of the conference, he said, will deal with the extension of the line of research begun by the epoch-making work of Drs. Von Neumann and Oscar Morgenstern, also of Princeton, on “The Theory of Games and Economic Behavior.”

Speakers at the morning session include Robert R. Bush, associate professor of applied mathematics, New York School for Social Work, Columbia; R. Duncan Luce, lecturer, Department of Social Relations, Harvard; and William S. Vickrey, associate professor of economics, Columbia. Carl G. Hempel, professor of philosophy, Princeton, will comment.

In the afternoon session addresses will be made by Tjalling C. Koopmans, professor of economics, Yale; Jacob Marschak, professor of economics, Yale; Paul F. Lazarsfeld, professor of sociology and chairman of the Department of Sociology, Columbia. Ernest Nagel, John Dewey Professor of Philosophy, Columbia, and Orville G. Brim, Russell Sage Foundation, will comment.

The meeting is sponsored by the Conference on Methods in Philosophy and the Sciences organized in 1957 by a group of top-ranking scholars from leading universities. This is the 43rd [sic, probably “3rd”] semi-annual gathering at the New School.

Dr. Margenau is chairman of the conference and Dr. Gruen is secretary-treasurer. Dr. Horace M. Kallen, research professor in social philosophy and professor emeritus of the Graduate Faculty of Political and Social Science of the New School, is honorary president.

 

Note to Editor: While next Sunday’s Conference on Methods in Philosophy and the Sciences is a scholar’s conference and some of the papers will be technical in nature your reporter can we believe gain some highly interesting material on the light thrown on human motivation and behavior by the application of mathematical methods in the fields of psychology, sociology and economics. Leading corporations in the country in recognition of this fact are increasingly employing mathematicians on their staffs. We suggest that your reporter get in touch with Dr. William Gruen at the conference.

Above “Note to Ed” added to copies of release for NY Times and Herald Trib.

 

Source: New School for Social Research (New York, N.Y.: 1919-1997). Announcement of a conference “The State of Mathematization of the Social Sciences“. May 21 1958. New School press release collection. New School Archives and Special Collections Digital Archive. Web. 07 Mar 2019.

Image Source: Exterior of 66 West 12th Street Building of The New School. 1930 – 1960. New School photograph collection; Buildings and campus (NS040101.SII). New School Archives and Special Collections Digital Archive. Web. 07 Mar 2019.

 

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Exam Questions Harvard Methodology

Harvard. Final Exam for Scope and Method of Economics. Taussig, 1896.

 

Frank Taussig returned from a sabbatical to teach a course on the scope and method(s) of economics at Harvard during the second term of 1895-96. The following years his colleague, the economic historian William Ashley, taught the course.

The enrollment figures and final examination questions for Taussig’s course are provided below.

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COURSE ANNOUNCEMENT

[Economics] 13hf. Scope and Method in Economic Theory and Investigation. Half-course. Wed., Fri., and (at the pleasure of the instructor) Mon., at 1.30 (second half-year). Professor Taussig.

Source: The Harvard University Catalogue, 1895-96,p. 100.

 

COURSE ENROLLMENT

[Economics] 132. Professor Taussig.—Scope and Method in Economic Theory and Investigation. hf. 2 hours, 2d half-year.

Total 14: 11 Graduates, 3 Seniors.

 

Source: Harvard University. Report of the President of Harvard College, 1895-1896, p. 63.

 

1895-96
ECONOMICS 13.
[Final examination]

  1. Compare Wagner’s enumeration of the problems within the scope of economic science with Keynes’s; and consider what doubts or objections there may be in regard to any of the problems mentioned by either writer.
  2. Explain and examine critically one of the following passages in Wagner:

Section 63 (pp. 158-163).
Section 70 (pp. 180-182).

  1. Illustrate the mode in which use is advantageously made of the deductive and the inductive method in regard to two of the following topics:

the causes which determine the general range of prices;
the prospects of socialism;
the prospects of cooperation.

  1. What peculiarities and difficulties appear for economic science in the choice of terminology and in definition? Illustrate.
  2. Is there ground for saying that the economic history of very recent times is of greater value for economic theory than the economic history of remote periods?
  3. What do you conceive to be the position in regard to method in economics of Ricardo? J.S. Mill? Roscher? Schmoller?

 

Source: Harvard University Archives. Prof. F. W. Taussig Examination Papers in Economics, 1882-1935, (HUC 7882), p. 55.

Image Source: Harvard Portfolio, vol. VI, 1895 .

Categories
Austria Economists Exam Questions Johns Hopkins Methodology

Johns Hopkins. Final exam for Fritz Machlup’s methodology course, 1956

 

 

Besides the questions for the final exam in Fritz Machlup’s course on the methodology of economics from the first semester of the 1955-56 academic year at Johns Hopkins University, I include the following photo from the 1956 yearbook Hullabaloo (p. 15) that identifies neither the speaker nor the seminar. While this is about as generic a seminar photo as one can imagine, I have something more than a mere suspicion that we are looking at Fritz Machlup in action. Perhaps some visitor with a keener forensic eye can confirm or reject my tentative identification in a comparison of the above portrait of Machlup reading himself with the speaker in the mystery seminar. The third man on the right, counting from the speaker, sure looks like a young Evsey Domar.

My hunch is based on the following picture of almost certainly the same seminar room in 1963 from the Carl Christ memorial website at Johns Hopkins.

 

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THE JOHNS HOPKINS UNIVERSITY
METHODOLOGY
18.601

Professor Fritz Machlup
January 27, 1956

Answer five questions, one from each group.
Write on loose sheets of paper; start a new sheet for each question.
Identify each sheet by the Question Number in the left corner and your Examination Number (which you draw before the examination) in the right corner; your name should appear nowhere.
You are on your honor not to use notes or to give or accept advice.

I.

  1. According to Poincaré, “a priori propositions are irrefutable because they are really firm resolutions to carry on the scientific game according to certain rules or stipulations.” Nevertheless, Morris Cohen considers a priori principles as “methodologic or regulative principles which enable us to organize our factual knowledge” and as “expressive of the fundamental nature of things,” What light does this view throw upon the methodological discussions of Hutchison, Kaufmann, Mises, and Knight?
  2. “While the deductive method might be applicable to a simple and stationary condition of industry, it becomes valueless in face of the increasing complexity of the modern economic world.” What was John Neville Keynes’ reaction to this point of view?
  3. “Just as the same proposition may express both a universal and a historical, or both a verbal and a real judgment, so it may express both a positive and a normative judgment.” (Fraser, Economic Thought and Language). First explain each of the three sets of antonyms and then explain and illustrate the statement.

II.

  1. Contrast and compare the logical nature of introspectionism and sensationalism as expounded by Felix Kaufmann or Morris Cohen.
  2. Give a reasoned explanation of Kaufmann’s distinction between three meanings of probability, one “relating to empirical knowledge as such”, another relating “to synthetic propositions undecided in a given scientific situation,” and a third referring to “the relative frequency of an attribute” within a certain collective.
  3. Felix Kaufmann, having made a distinction between empirical laws and theoretical laws, states: “Whereas we have both types of laws in natural science, there are, as I see it, no empirical laws established in social science, and even the tendency to establish such laws is not very strong. But if we consider the significance of theoretical laws in natural science, we cannot regard this as constituting a fundamental difference between the methods of natural science and those of social science.” Explain and discuss this statement in a way intelligible to someone who has not read Kaufmann’s writings.

III.

  1. Explain what Ludwig von Mises means by ”methodological apriorism”, “methodological individualism”, and “methodological singularism”.
  2. “In the history of applied Economics, the work of a Jevons, a Menger, a Bowley, has much more claim on our attention than the work of, say, a Schmoller, a Veblen, or a Hamilton.” What is Robbins driving at with this [last word cut off, “statement?” matches the spacing of the tips to the letter “t” that are still visible]
  3. Hutchison implies that pure theory may help the analyst to formulate questions to be answered by empirical studies: “The constant object of the scientist…is to compel the facts of experience to answer his questions definitely ‘yes’ or ‘no’…” Robbins appears to reverse the relationship: “Realistic studies may suggest the problem to be solved….But it is theory and theory alone which is capable of supplying the solution.” Discuss the paradox from the point of view of any of the other writers on methodology.

IV.

  1. If the description or institutional part of economics is viewed by Professor Knight as lying in the domain of cultural anthropology rather than economics proper, does this mean that in institutional inquiries sense observation assumes greater emphasis than intercommunication and interpretation? If not, why does Knight distinguish institutional from theoretical economics?
  2. “There are no better terms available to describe the difference between the approach of the natural and the social sciences than to call the former objective and the latter subjective.” (Hayek, “Scientism and the Study of Society”.) Explain the meaning of the essential terms employed and the statement as a whole.
  3. Hayek said: “It is only in so far as some sort of order arises as a result of individual action but without being designed by any individual that a problem is raised which demands a theoretical explanation.” Explain.

V.

  1. “Economics is in fact the only science which enjoys the advantage of an automatic quantification of its subject matter.” (Parsons, “Sociological Elements in Economic Thought”). Explain and discuss.
  2. Parsons distinguishes the following ideal types of criticism of abstract economic theory: (1) supplementary positivistic empiricism: (2) radical positivistic empiricism; (3) romantic empiricism; (4) supplementary non-economic sociology. Characterize each in a brief statement illustrated by examples.
  3. Discuss Veblen’s principal categories of human action—especially the “pragmatic” versus the “workmanlike” type—and compare them with the general “rational” type and the narrower “economic” type used in the abstract theories of traditional economics.
  4. On what grounds do Professors Herskovits and Knight reject and defend, respectively, the concept of the “economic man” as a useful tool of economic analysis?

 

Source:  Johns Hopkins University. The Ferdinand Hamburger, Jr. Archives. Department of Political Economy, Series 6. Box 3/1. Folder: “Department of Political Economy, Graduate Exams, 1933-1965”.

Image Source:  Johns Hopkins University yearbook, Hullabaloo, 1957, p. 28.

Categories
Methodology Statistics

Statistical Society. On the Relation of Statistics to Political Economy. Address by William A. Guy, 1865

 

I am afraid I can’t recall any details from the wild-goose chase that serendipitously landed me at the following 1865 address by the forensic physician/statistician William August Guy. His speech to the British Statistical Society covered everything from the origins and usages of the word “statistics” through its relation to political economy and “social sciences” (his quotes).  

There is much interesting in these 1865 musings, but perhaps my favorite quote is the following:

…the sciences which have to do with living beings, whether in the vegetable or animal kingdom, must rest their claims rather upon the fidelity of their descriptions, and the soundness of their classifications, than on the fulfilment of their predictions or the power which they can exert. The knowledge which they have acquired by the observation of many individuals differing widely from each other, cannot be applied with certainty to the individuals themselves, but only to groups of individuals similar to those which first supplied the knowledge. And that which is true of the plant or the animal, is true of individual men as members of society. It is from groups of persons that we obtain our knowledge; it is to like groups that we apply it. We cannot, therefore, refuse to the Actuary who first collects and arranges facts relating to the duration of human life, and then calculates the expectation of life, the title of a man of science, for no better reason than that his calculations possess the high utility of which I have been speaking, not when applied to the individual man, but only when brought to bear (as in life assurance) on great numbers of persons. And so must it be with the Statist, in the sense in which I would use the term. He collects and arranges his facts, calculates their average value, marks, in some cases, their extreme values, and would make application of his knowledge to the groups or classes to which the facts relate, but that the right and power of action rests with the State and not with him. But the fact that the results which he obtains are applicable in practice not to individuals but to classes, and the accident, so to speak, which separates the discovery of truth from the power of applying it, cannot destroy the dignity of his pursuits nor rob statistics of its right to take rank among the sciences.

I have made a few editing corrections, e.g. correcting misspellings in German, for the sake of assisting text searches by others.

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Biography of William August Guy

GUY, WILLIAM AUGUSTUS (1810–1885), statistician, was born in 1810 at Chichester, where his male ancestors for three generations had been medical men. Hayley, in his ‘Life of Romney,’ says of his grandfather, William Guy, that he won Cowper’s heart at sight, and that Romney would have chosen, him as a model for a picture of the Saviour. Guy spent his early life with this grandfather and then went to Christ’s Hospital, and for five years to Guy’s. He won the Fothergillian medal of the Medical Society of London in 1831 for the best essay on asthma, and afterwards entered at Pembroke College, Cambridge, where, after further study for two years at Heidelberg and Paris, he took his M.B. degree in 1837. In 1838 he was appointed professor of forensic medicine at King’s College, London, in 1842 assistant-physician to King’s College Hospital, and from 1846 to 1858 he was dean of the medical faculty. He early directed his attention to statistics, and was one of the honorary secretaries of the Statistical Society, from 1843 to 1868. In 1844 he gave important evidence before the Health of Towns Commission on the state of printing offices in London, and the consequent development of pulmonary consumption among printers. He took part in founding the Health of Towns Association, and was incessantly occupied in calling public attention to questions of sanitary reform by investigations (statistical and medical), lectures, and writings. He thus rendered valuable services in connection with the improvement of ventilation, the utilisation of sewage, the health of bakers and soldiers, and hospital mortality.

He edited the ‘Journal of the Statistical Society’ from 1852 to 1856, was vice-president 1869-72, and in 1873-5 he was president of the society. He was Croonian (1861), Lumleian (1868), and Harveian (1875) lecturer at the Royal College of Physicians, and was frequently censor and examiner of the college. In 1878 he was appointed one of the royal commissioners on penal servitude, and on criminal lunatics in 1879. In 1876-7 he was elected to the post of vice-president of the Royal Society.

Guy’s ‘Principles of Forensic Medicine,’ first published in 1844, and frequently reedited, is now a standard work, the fourth and later editions having been edited by Dr. David Ferrier. Although often consulted in medico-legal cases he would never give evidence publicly, partly from over-sensitiveness, partly from want of confidence in juries. Guy retired from medical practice for many years before his death, retaining only his insurance work. His sympathies were broad, as were his political and religious views. He died in London on 10 Sept. 1885, aged 75.

Guy’s larger works are: 1. ‘R. Hooper’s Physician’s Vade-Mecum; enlarged and improved by W.A.G.,’ 1842 (many subsequent editions). 2. ‘Principles of Forensic Medicine,’ 1844; 4th edition, 1875, edited by D. Ferrier. 3. T. Walker’s ‘Original,’ edited with additions by W.A.G. 1875; another edition 1885. 4. ‘Public Health; a Popular Introduction to Sanitary Science,’ pt. i. 1870; pt. ii. 1874. 5. ‘The Factors of the Unsound Mind, with special reference to the Plea of Insanity in Criminal Cases,’ 1881. 6. ‘John Howard’s Winter’s Journey,’ 1882.

Guy published several lectures, and contributed many papers to the Statistical Society, including the ‘Influence of Employments on Health,’ ‘The Duration of Life among different Classes,’ ‘Temperance and its relation to Mortality,’ ‘The Mortality of London Hospitals,’ ‘Prison Dietaries,’ and ‘John Howard’s True Place in History.’

 

Source: “Guy, William Augustus” by George Thomas Bettany in Dictionary of National Biography, 1885-1900, Volume 23.

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On the Original and Acquired Meaning of the term “Statistics,” and on the Proper Functions of a Statistical Society: also on the Question whether there be a Science of Statistics; and, if so, what are its Nature and Objects, and what is its Relation to Political Economy and “Social Science.”

By William A. Guy, M.B., F.R.C.P., one of the Honorary Secretaries of the Statistical Society.

[Read before the Statistical Society, 21st November, 1865.]

It cannot, I think, be denied that those who cultivate the branch of knowledge which this Society was established to foster and promote, are held in less estimation than men who devote the same labour and similar talents to many other pursuits. This arises in part from misapprehensions as to the meaning of the word “Statistics,” and as to the objects and aims of statistical inquiries; and in part to the common mistake of confounding the laborious collection of facts which constitutes the second process of every sound statistical inquiry with the whole procedure, overlooking alike the judgment and scientific insight which planned the inquiry, and the critical and analytical talent employed in discovering and displaying the truth. The aim of this communication is to vindicate the claim of Statistics to an honourable place among the sciences, and of statistical inquiries to the credit of which they have been unintentionally deprived. In carrying my purpose into effect, I shall observe the order of inquiry indicated in the title of the paper itself.

1. On the Original and Acquired Meaning of the term “Statistics.”

The word “Statistik,” from which the English “Statistics” is derived, is somewhat more than a century old. It appears to have been first used by Gottfried Achenwal, professor of law and politics at Göttingen, in his work entitled “Staatsverfassung der heutigen vornehmsten Europaischen Reiche und Völker,”* of which the first edition bears date 12th April, 1749. [Abriß der neusten Staatswissenschaft der vornehmsten Europäischen Reiche und Republicken] The word Statistik does not appear on the title page of the book, but is printed in large letters at the head of a short sketch of the bibliography of politics prior to the appearance of the author’s work. This sketch is headed “Vorbereitung von der STATISTIK [Staatskunde] überhaupt,” and gives a list of ten works in Latin and German published between the years 1668 and 1750, which works are best described as treatises on universal history; and it is followed by a philosophical disquisition in sixty-one sections, respecting the several elements which go to make up a full and complete history of a modern State. It is in this introduction that the original meaning of the term statistics is to be sought.

*The sixth edition of this work has been purchased for the library of the Society.

Now we find the author incidentally defining the term Statistik as that branch of learning (Disciplin) which occupies itself with the extent, limits, subdivisions, and natural relations of States, their advantages, their history, and their origin; as the description of the political constitution of one or more States; as synonymous with Staatskunde and Staatsbeschreibung (the science and the description of States). By statistics (die Statistik), he says, we attain to a knowledge of States and their constitution. But it is not everything that can be truly said of a State that properly finds a place in statistics, but only what contributes to political knowledge, and conduces, in an eminent degree, to the welfare of a State; so that the more any matter concerns the general well-being of a State the more necessary is it that it should find its illustration in statistics. Again, it is not what the vulgar care most about that proves most attractive to the statistical inquirer. The number of swine, or the first use of coffee in country parts, has more importance in his sight than the pedigrees of noble houses. And again, in speaking of statistical collections, the author insists that the facts of which they consist, should be as little as possible mixed up with reasonings. They ought to be mere facts. Lastly, this Statistik is worthy of honour, for from it history borrows a considerable portion of her light, to general public law it contributes most valuable material, and it enriches politics with a multitude of practical data.

What the author really means by statistics, is practically shown in the eight short treatises on Spain, Portugal, France, Great Britain, the Netherlands, Russia, Denmark, and Sweden, which constitute the body of his work. Taking Great Britain as our example, we find him first giving (in seven short sections under the head of Staatsveränderungen) a short history of our origin and growth; then under the head of Länder, an account of our boundaries, climate, mountains, and streams, of our constituent parts, and their divisions into counties, with their productions; then under the head of Einwohner,* the number of inhabitants, and their character; next under Staatsrecht, our fundamental laws, the order of regal succession, the prerogatives of the crown, the character of the government, the estates of the realm, the houses of parliament; next, under the head of Hof- und Regierungsverfassung, the titles of the king and crown prince, the royal arms, the officers of state, the privy council, the State religion, our universities and places of education, our local government, our legal procedures, our manufactures, internal traffic, und external commerce, our coinage, our finances, system of taxation, and national debt, our army and navy. This account of Great Britain is finished by a short chapter headed Staatsinteresse, in which the author sets forth in few words what he conceives to be the causes of the then prosperity of the nation which he, perhaps not inaptly, designates “the paradise of lawyers.”

It will be seen, then, that Achenwall uses the word Statistik as strictly synonymous with Staatskunde, or State-science, and Staatsbeschreibung, or the description of States; and that under the name of statistics he describes the actual condition of a State under all its aspects—territorial, political, educational, religious, industrial, commercial, and financial—its means of offence and defence being given as a necessary part of its history, but the exploits of its army and navy being passed over or lightly touched upon. It will be seen also, that the use of figures is not insisted on, although facts, pure and simple, and as much as possible disencumbered of theories, are commended as of the greatest value.

From the general tone and spirit of Achenwall’s introductory chapter, I infer that he felt the want of some one comprehensive word which should supersede the many terms in use at the time at which he wrote, such as Staatskunde, Staatsbeschreibung, Staatslehre, Staatswissenschaft, Staatsrecht, Staatskenntniss, Staatsklugheit, &c. The meaning of some of these terms he defines very clearly, as in the following passage. “Staatslebe teaches how States should be: “Staatskunde describes them as they are: Staatsgeschichte shows “how they have become what they are. Staatskunde is a stationary “Staatsgeschichte, as this is a progressive Staatskunde. It must “be understood, then, that we are not now treating of a States-history according to the taste of the Anno Domini men, but “according to that of Robertson, Lagerbring, Gyannoni,” &c.

The word Statistik, then, means the description of States as they are; and the description contemplated by the author is obviously such an one as the best modem historians carry into practical effect when they contend that history should not be a mere record of names, dates, wars, and political struggles, but also afford complete and faithful pictures of manners and customs, sciences and arts, industry and commerce—of everything, in fact, which contributes to the wealth, strength, honour and dignity of a nation.

Additional light is thrown on the meaning of the word Statistik by the incidental use of the word Staatisten or Staatsgelerten, the learned in matters of state, a word which is evidently the exact equivalent of the word Statist, which our old English writers frequently employ—always in the sense of a man versed or busied in State matters, but with shades of difference. Shakespeare seems to use it in the sense both of politician and statesman. Ford, in the latter sense. Beaumont and Fletcher contrast statists with men of action. Milton speaks of statists and lawyers, and seems to use the word statist as synonymous with statesman, and with patriot. Wood describes Gardner as a great statist. Sir Thomas Browne classes statists and politicians together. Lastly, Carlyle quotes an old proverb, not intended to be very complimentary to us, “as the statist thinks the bell clinks.” The word “statism,” again, is used by some old authors as synonymous with “policy,” “the arts of government,” or statecraft; and the words “Statistical” and Political,” “Statist,” “Statesman,” and “Politician,” are given as equivalent terms by Todd in his edition of Johnson. For most of these references, which are given in extenso below,* I am indebted to Todd’s edition of Johnson’s “English Dictionary” and Richardson’s “English Dictionary;” and I bring this part of my paper to a close by quoting the definition of Statistics given in those works.

“Statisticks (from Statism or Statist). That part of municipal philosophy which states and defines the situation, strength, and resources of a nation.”—Todd’s Johnson.
“Statistick (Fr. Statistique) is a word for which we are said to be indebted to a living writer. Statisticks is applied to everything that pertains to a State—its population, soil, produce, &c.”—Richardson.**

* “The greatest politician is the greatest fool; for he turns all his religion into hypocrisy, into statisme, yea into atheism, making Christianity a very foot-stool to policy.”—Junius, Sin Stigmat (1639), p. 613.
“Hence it is that the enemies of God take occasion to blaspheme, and call our religion statism.”—South, vol. I, sermon 4.
“And besides them I keep a noble train,/Statists and men of action.”—Gonzales. Beaumont and Fletcher, Laws of Candy, act ii, scene 1.
“You are an eminent statist, be a father/To such unfriended virgins, as your bounty/Hath drawn into a scandal.” Ford, The Fancies Chaste and Noble, act ii, scene 3.
“Statists indeed,/And lovers of their country.” Milton Paradise Regained.
“Though he (Cicero) were sparing otherwise to broach his philosophy among statists and lawyers.”—Milton, Doct. and Disc. of Divorce, b. ii, c. 3.
“The people looking one while on the statists, whom they beheld without constancy or firmness.”—Milton, History of England, vii, b.ii.
“He (Gardner) was a learned man and of excellent parts, a great statist, and a writer of many books.”—Wood, Fasti, Oxon, vol. i.
Posthumus to Philario. “I do believe/(Statist though I am none, nor like to be)/That this will prove a war.” Shakespeare, Cymbeline, act ii, scene 4.
“I once did hold it, as our statists do,/A baseness to write fair.” Hamlet to Horatio. Hamlet, act v, scene 2.
“As the statist thinks, the bell clinks.”—Old Proverb.
Statists and politicians unto whom Ragione di Stato is the first considerable, as though it were their business to deceive the people.”—Sir Thomas Browne, Pseudodoxia Epidemica (Vulgar Errors), book i.
Statists that labour to contrive a commonwealth without our poverty, take away the object of charity, not understanding only the commonwealth of a Christian, but forgetting the prophecy of Christ.”—Sir Thomas Browne, Religio Medici, part ii, 1642.

**The living writer here spoken of is probably M. B. P. Capper, “Statistical Account of the Population, &c., of England and Wales, 1801.”

How the word Statistik came to undergo so considerable a change of meaning, as to imply not a history or description of States and Kingdoms, but only a part of the materials of which such history or description is composed (as if for a stately building we were to substitute the bricks or stones, for a finished painting some only of the colours), it would not be easy to point out, nor would the search after the facts repay the labour of the investigation. Suffice it to state that such a change had already taken place when this Society was first called into existence in the year 1834.

On referring to the Report of the third meeting of the British Association, held at Cambridge in 1833, I find Professor Sedgwick stating from the chair that, in addition to the five existing sections, another, originating with some distinguished philosophers, had come into operation, the object of which was to promote statistical inquiries. The president thought it necessary to justify the addition of this sixth section, and, in doing so, insisted that it should limit itself to “matters of fact,” “mere abstractions,” and “numerical results,” constituting what might be called “the raw material to political economy and political philosophy,” by which perhaps “the “lasting foundations of those sciences may be ultimately laid.” The formation of this new section was referred to in the following year as the prelude to the establishment of a flourishing society which acknowledged itself the offspring of the Association, and promised, by a similar procedure, to advance materially the greatly neglected subject of British statistics. The prospectus of our Society, which was printed in the Transactions of the Association, fixed the date of our foundation as the 15th March, 1834, and set forth very clearly our objects and plan. It stated that the Statistical Society of London was established for the purpose of procuring, arranging, and publishing “facts calculated to illustrate the condition and prospects of society,” that ” the first and most essential rule of its conduct” was “to exclude carefully all opinions from its transactions and publications—to confine its attention rigorously to facts—and, as far as it may be found possible, to facts which can be stated numerically, and arranged in tables.”

It will be seen, then, that at the date of the establishment of the Statistical Section of the British Association, and of this Society (its offspring), statistics had already come to mean rather the materials of a science than the science itself. As Professor Sedgwick understood the word, it represented mere facts to be used as the raw material of political economy and philosophy, but as the Founders of our Society apprehended it, the facts were to be applied to the building up rather of a social than of a political edifice. But there was one point upon which all parties seem to have been agreed. The statistical labourer was not to be indulged with the luxury of opinions; he was to be a patient drudge, binding up his sheaves of wheat for others to thresh out. The very crest and motto of the Society, stared him in the face from the cover of every Journal, reminding him of the humble and unintellectual work expected at his hands. In putting forth this restricted and unattractive programme, the British Association seem to have been actuated by a desire to secure for the new section facts as trustworthy as the observations and experiments in physical science, with which the other sections had to do; while the Statistical Society wished to separate itself as much as possible from the hypotheses and unfounded assertions which had heretofore formed great part of the stock in trade of the political economist and social reformer. But both parties overlooked the fact that the new section of the Association on the one hand, and the Statistical Society on the other, had other functions to discharge than that of mere depositories of facts. Meetings were to be held at stated intervals, which should offer to those who attended them, such attractions as are put forth by other societies. The members would expect to listen to, and to take part in, not merely dry strictures on the author’s facts and figures, the soundness of the units, and the sufficiency of the numbers, but discussions on the broad principles which the figures might seem to suggest or establish. If the author could succeed in concealing or stifling his opinions, his audience would not be restrained from expressing theirs; and it was surely hard to deny him a liberty which could not be refused to them.

It is obvious, too, that exactly in proportion to the talent and originality of the author, and the desire of the members to profit by his labours, would be his own restiveness under the restrictions imposed upon him. Accordingly, as early as May, 1835, we find Mr. Hallam, the treasurer of the Society, at a meeting at which he himself presided, “giving an account of regulations enacted by the magistrates of Ypres, for the maintenance of the poor in the year 1530,” in which account there does not occur a single figure, much less a single tabular statement, but the distinctly expressed opinion that these Belgian provisions for the poor formed the model for our own English legislation in the reigns of Henry VIII and Elizabeth: and in December of the same year, Mr. G. R. Porter reads a paper “On the Connection between Crime and Ignorance, as exhibited in Criminal Calendars.” Now Mr. Hallam begins his communication by remarking “that it seems within the province of the Statistical Society to collect such information from the history of past times, as illustrates the condition of society, especially in relation to the more important discussions of political economy;” and Mr. Porter, after rehearsing the objects of the Society, observes “that occasions will sometimes arise when it may be permitted to the members of the Statistical Society to offer the result of investigations whereby they may have detected fallacies, and especially those which have been suggested, and are apparently supported by inquiries more strictly coming within the limits of statistical labours.” Thus early, then, in the history of this Society, do we find its very founders and office-bearers, men of whom we are justly proud, breaking through the narrow bounds within which it was sought to confine them, and setting at nought the self-denying ordinance which, had it been narrowly observed and strictly acted up to, would have made the Statistical Society of London a very bye word for contented dullness and senseless drudgery. But fortunately for us the Society has become moulded almost imperceptibly into a more attractive form. The facts and figures of many of our most valued contributions have first been collected and arranged by men who submitted to the labour because they had opinions which they wished to bring to the test, and have then been brought before us instinct with the living energy, and force which thought lends to fact.

The most cursory examination of the Journals of the Society, or of the excellent Index to their contents, must serve to convince us that the eminent men to whom I have just referred, did not stand alone in their disobedience to the strict letter of our original prospectus. Their successors followed their example, and produced papers for discussion at our evening meetings, and for subsequent publication in the Journal, of which it may be worth while to attempt an analysis. I find that these papers admit of being arranged in at least as many groups as those which follow:—

  1. Papers giving an account of the existing state or condition of entire nations or kingdoms—such an account as Achenwall himself would have designated by the term Statistik.
  2. Papers giving a similar account of parts only of such nations or kingdoms, of provinces, counties, districts, cities, towns, and parts of towns, rural districts, and villages. These descriptions would probably have received from Achenwall the same designation.
  3. Papers discussing, in relation to whole kingdoms, or parts of them, such matters as education, crime, industry, health, wealth, manufactures, commerce, special branches of industry and production, &c.
  4. Reports of the inquiries of committees appointed by the Council, as the Committees on Education in Westminster, Finsbury, and London, on the state of Church Lane, St. Giles’s, on Registration and the Census, on Beneficent Institutions, &c.
  5. Polemical papers, contesting the opinions of authorities past or present, as derived by them from the use of numerical returns or otherwise.
  6. Papers on the numerical method, and the scientific treatment of facts and figures.
  7. Papers discussing, without the aid of figures, some historical question, or some question relating to the proper meaning and use of terms employed by the political economist or student in some allied science. These papers are few in number, and may be looked upon as exceptional.
  8. Papers on subjects belonging properly to some well defined branch of science, such as physiology or medicine, admitted into the Journal as rich in facts and figures, but having no direct bearing on the objects of “statistics” properly defined. Such are some parts of the paper of Dr. Clendenning “On the Relative Frequency of Pulmonary Consumption and Diseases of the Heart,” published in the first volume of the Journal, and the greater portion of that of Dr. Hutchinson, “On the Results of Experiments with the Spirometer,” published in vol. vii.

This classified outline of the papers submitted to the Society for discussion, and printed in our Journal, will prepare the way for the consideration of the second subject comprised in the title of my paper, namely,

2. The Proper Functions of a Statistical Society.

It will not, I think, be disputed that Achenwall’s definition of the word Statistik is quite in keeping with the now acknowledged functions of a statistical society, and that if the meaning of the term be so enlarged as to embrace not States or kingdoms only, but all their constituent parts, the functions of the society may be very properly enlarged in a like degree.

Again, it will not be denied that Achenwall was right in insisting upon the value of facts, nor that a statistical society would forfeit its distinctive character, if it did not aim at collecting, arranging, and tabulating facts, as its means of illustrating and describing the actual condition of States, Kingdoms, and their constituent parts.

But it is evident that the definition of Achenwall, even with the extension here indicated, would be too narrow to embrace all the proper functions of a statistical society, as now generally understood. Something more than a true history and description of States and their constituent parts is clearly implied in the words used by our founders, when they describe our object and plan to be the procuring, arranging, and publishing “facts calculated to illustrate the condition and prospects of society.” Now the word “society” is evidently not synonymous with the word “State,” and it is doubtful whether Achenwall ever proposed to himself that minute and comprehensive survey of man as a being living in society which our founders had in view. He contemplated, as I think, an improved history of States; we an improvement in the condition of the individual, the constituent unit of the State. He aimed at a correct knowledge of States for the sake of the knowledge itself; we at a perfect knowledge of the individual, with a view to his improvement as a man, such knowledge being impossible of attainment through the isolation of an individual from the class to which he belongs, inasmuch as the propriety of the selection might be questioned; such improvement being equally impossible through the obvious inadequacy of remedial measures, applied merely in detail, to individuals suffering some common injury. Hence the necessity of large numbers of facts.

The true conception of the functions of a statistical society may, I think, be best arrived at by combining into one comprehensive sentence the definition of Achenwall and the statement of our prospectus, and adding to this combined formula, such minor details as are obviously suggested by the proceedings and usages of our Society. If this view of the matter be correct, the following summary of the proper functions of a statistical society will not be very wide of the truth :—

  1. To collect and preserve facts illustrating the past and present condition and probable future prospects of States and their territorial divisions, and of the several classes of their inhabitants. This is best done by means of a library, well arranged and duly catalogued, containing both books and manuscripts.
  2. To add to existing facts by the special inquiries of committees, or of persons appointed for the purpose.
  3. To promote the discussion of unsettled questions and the correction of erroneous views in political and social economy, by arranging for the reading of papers at periodical meetings to be held for the purpose, such papers only to be deemed to be within the province of the Society, as make use of facts and numerical statements in support of the views therein expressed.
  4. To encourage to the utmost all efforts tending towards the establishment of sound principles for the guidance of those who engage in the work of collecting, arranging, and tabulating facts, and in applying the numerical method to the discovery of truth.
  5. To discourage the improper use of the word statistics as a mere synonym for collections of facts, irrespective of the use to which they are put; and to uphold the dignity of the Society as applying facts of a peculiar order to purposes of the highest utility.
  6. To discourage and repress all encroachments on the arena of politics, as objects of party strife.

Such would appear to be the proper functions of a statistical society as determined by a joint consideration of the original meaning of the term Statistics, the programme of our Society, and our experience of its actual working.

3. Is there a Science of Statistics; and, if so, what are its Nature and Objects, and what is its Relation to Political Economy and Social Science?

It is obvious that we are not in a condition to answer the question, whether there be a Science of Statistics, until we have first settled (if that be possible) the meaning of the word Science itself; and it is equally obvious that this word is one of very unsettled import, having every shade of meaning between knowledge arranged and methodised, and certainty based on demonstration. On consulting the same Dictionaries from which I collected the meanings of the words Statist and Statistics, I learn that according to the usage of the best authors, science may either retain its original meaning namely, knowledge, or come to signify any “one of the seven liberal arts,” or “any art attained by precepts or built on principles,” or “certainty grounded on demonstration.” If Shakespeare and Pope may be cited as authorities for the right use of words, music and mathematics are sciences, as are also the seven “liberal arts,” grammar, rhetorick, logick, arithmetick, musick, geometry, and astronomy. Glanville, a prose writer cited by Johnson, goes the extreme length of speaking of the “indisputable mathematics” as the only science heaven hath yet vouchsafed to humanity. Gibbon seems to use the word science as equivalent to the word speculation.

But the adjective, scientifick, appears to have been used by our best prose writers in one and the same sense of demonstration or certainty. Thus Sir Thomas Browne appears to consider science as “natural philosophy proceeding from settled principles,” and issuing in “a sure and rational belief;” Howell speaks of scientifical knowledge, as something of unusual excellence; South of scientifick evidence as something surpassing “high probability” and “moral certainty;” and Locke has the phrase “scientifical or demonstrative reasoning,” and speaks of “a comprehensive, scientifical, and satisfactory knowledge of the works of nature.”*

* See Todd’s Johnson, and Richardson’s “English Dictionary,” under the words ” Science” and ” Scientifick.”

If from the works of authors cited in dictionaries, we pass on to consider the more formal definitions of science as given by our best authorities, we find great differences of meaning. I will content myself with quoting two eminent scientific men, Sir John Herschel and Professor Sedgwick. The former, in his “Discourse on Natural Philosophy,” p. 18, tells us that “Science is the knowledge of many, orderly, and methodically digested and arranged, so as to become attainable by one.” The latter understands by science (I quote from his address to the British Association in 1833), “the consideration of all subjects, whether of a pure or mixed nature, capable of being reduced to measurement and calculation.” These definitions may be taken to indicate the two extremes of meaning of the word Science. It can mean nothing less than the one, nor more than the other. But perhaps its true meaning is to be gathered not from dictionaries or from the definitions of philosophers themselves, but from a close examination of its primary and secondary uses as drawn from examples. It is in this way that I shall myself attempt to answer the question—What is a science?

In the first place, it is obvious that the word Science originally meant knowledge, as the word Art meant skill, and that a science meant a special application of knowledge as an art did a special application of skill. But it is also obvious that the words science and art have ceased to be exactly synonymous with knowledge and skill. They evidently mean knowledge and skill with certain qualifications and reservations.* An art, so long as it continues to be a mere affair of skilful handiwork, remains an art; but directly it submits itself to the guidance of well ascertained general principles, it may claim to be a science, provided only that its applications have a certain largeness of scope, combined with utility of a high order. Thus there is an art of music, and a science of musical composition; an art of drawing, and a science of perspective; an art of construction, and a science of architecture; an art of reasoning, and a science of logic; an art of persuasion, and a science of rhetoric; an art of calculation, and a science of arithmetic. In all these instances the art has a large aim and an undoubted utility as ministering to some universal want, or some general craving for refined amusement of the senses and mind, while the science is characterised by the universality and precision of its application to the special instances created by the corresponding art.

* “Knowledge, emphatically, not imperfect or protended.”—Richardson’s English Dictionary.”

An examination, therefore, of the arts that have grown into sciences, and are generally acknowledged to deserve the name, shows that the characteristic of sciences is the possession of general principles applied with precision to individual instances furnished by the arts out of which they have grown, or to which they lend their aid. In some instances, it will be seen that the principles of the science, though precise, are few in number, while the art is characterised by largeness of application within very narrow limits. Such is the science of logic as applied in the art and act of reasoning. In other cases, arts draw their rules of practice from more than one science, as is the case with architecture, which rests on the sciences of construction and ornamentation; or with the modern art of war, which uses the sciences of projectiles and of fortification, to which may perhaps be added the science of chemistry, and possibly a science of self-defence, of which fencing, with its precise phrases and definite rules of procedure, is the highest development.

In order, then, that any special application of knowledge or of skill may attain to the dignity of a science, and claim its patent of nobility, it must show universality and precision in its principles or rules, and utility of a high order in the application of them. But to these marks or signs of science, we must make some addition if we would satisfy the requirements of those who use the word science in its most restricted sense. They will have it that the principles or rules in question must not only be universally applicable to all suitable special instances, but they must be expressed in figures of arithmetic, and the results of their application must be certain. The eclipse must happen to a moment, and last for its calculated period; the elements of a compound body must combine in their atomic proportions to the ten-thousandth of a grain; musical notes must be so arranged and combined, as not to offend the most sensitive ear; and the lines of a drawing in perspective, must fall with such minute precision, that the most practised eye shall not detect the least departure from nature.

But is it not obvious that to limit the application of the word science thus narrowly, is to deny the use of that honourable title to some of those branches of knowledge which have been enriched by the greatest and most fruitful discoveries? Surely the men who in practising the noble art of healing, walk in the light of the discoveries of Harvey and Charles Bell, who have attained to the prevention of at least one loathsome malady, and to the performance of operations without pain; who have completed their knowledge of anatomy, and made great progress in the study of minute structure, of the chemical components of the body and its secretions, and of the subtle causes of disease; who make constant and skilful use of the most delicate instruments of investigation; who possess many approved remedies, some of which they apply with certainty to the cure of some maladies, and to the relief of others; have a claim to a higher title than that of mere artists, and may speak of themselves as men of science, and boast of a science of medicine, though their few certainties are mixed up with much that is purely conjectural, and their best knowledge runs like a golden thread through a tissue of imperfectly ascertained facts. For like reasons it would be unjust to those who practise the excellent arts of farming and horticulture in the light of modern discoveries to refuse to acknowledge a science of agriculture; and to the statesmen who administer the affairs of nations on the principles established by such men as Adam Smith, a science of political economy.

But in actual practice the term science is applied to branches of knowledge which are nearly or quite innocent of the use of figures; as, for instance, to Botany, which had earned its title by careful classification and exact description, even before it called to its assistance the microscopist to unravel, and the chemist to analyse, the tissues of plants. Zoology and Entomology, have perhaps even less claim to the name of sciences; and Geology owes that title rather to the largeness and grandeur of its objects, than to the precision of its information.

Chemistry, again, of which the claim to the dignity of a science is not to be disputed, owes its proud position to many distinct causes —to the joint possession of a numerical theory, of a precise and condensed nomenclature, of delicate instruments of analysis and discovery, joined to its perfect command of the materials on which it operates, and its intimate relations with other sciences on which it is in a condition to confer the greatest benefits.

In direct contrast to the science of chemistry, stands a branch of knowledge which has no practical applications, and owes its title to be termed a science solely to the dignity and surpassing interest of its object, and the singular talent and acuteness of its most distinguished cultivators—I mean the science of metaphysics. Setting this aside as exceptional, we may say of science in general that it should have practical applications of acknowledged utility and dignity, and general principles, comprehensive and precise, to which the mere practice of an art could not have given rise. But the hastiest survey of those branches of knowledge to which the term science has been, by general consent, applied, reveals a diversity of character in keeping with the obvious variety of practical pursuits to which men are impelled by necessity or choice. Astronomy has to do with objects of which the mass cannot be increased or lessened, nor the composition altered, nor the movements controlled by human interference. Its claim to be a science must, therefore, rest, in the main, on the exact fulfilment of its prophesies. The sciences which preside over all our great works of construction, are tested by the stability and durability of the works for which they supply the necessary numerical data. Chemistry vindicates its title by the visible and tangible results of its operations. But the sciences which have to do with living beings, whether in the vegetable or animal kingdom, must rest their claims rather upon the fidelity of their descriptions, and the soundness of their classifications, than on the fulfilment of their predictions or the power which they can exert. The knowledge which they have acquired by the observation of many individuals differing widely from each other, cannot be applied with certainty to the individuals themselves, but only to groups of individuals similar to those which first supplied the knowledge. And that which is true of the plant or the animal, is true of individual men as members of society. It is from groups of persons that we obtain our knowledge; it is to like groups that we apply it. We cannot, therefore, refuse to the Actuary who first collects and arranges facts relating to the duration of human life, and then calculates the expectation of life, the title of a man of science, for no better reason than that his calculations possess the high utility of which I have been speaking, not when applied to the individual man, but only when brought to bear (as in life assurance) on great numbers of persons. And so must it be with the Statist, in the sense in which I would use the term. He collects and arranges his facts, calculates their average value, marks, in some cases, their extreme values, and would make application of his knowledge to the groups or classes to which the facts relate, but that the right and power of action rests with the State and not with him. But the fact that the results which he obtains are applicable in practice not to individuals but to classes, and the accident, so to speak, which separates the discovery of truth from the power of applying it, cannot destroy the dignity of his pursuits nor rob statistics of its right to take rank among the sciences. And if, as in the case of chemistry, to which I have already adverted, the claim to be called a science rests on more attributes than one, this same claim may be set up on behalf of statistics: for we, too, have our classifications and our nomenclature; we, too, have our numerical method; we, too, have powerful instruments of analysis in our tabular forms; we, too, have the most universal and subtle of all the means of discovery, the power of eliminating disturbing elements, of establishing numerical equalities, and exhibiting residues as containing the cause or causes which made two or more numerical statements to differ from each other. We largely use the true Baconian method of induction, and Lord Bacon’s own favourite instrument the Tabula inveniendi. Lastly, of the utility and dignity of our pursuit there cannot be a doubt.

From these considerations, then, I infer that there is a science of statistics—a science worthy of respect, encouragement, and support—a science of which the members of this Society may be justly proud—a science to which States and nations need not be ashamed to acknowledge their obligations.

The question of the relation which this science of statistics bears to Social Science and Political Economy, is the only one which, according to the title of this paper, remains to be discussed. My answer to this question will be anticipated from what has gone before. The science of statistics is a comprehensive science, of which “social science” and political economy are only branches or departments. The original prospectus of this Society, already quoted, did really establish a Social Science when it stated as its object the procuring, arranging, and publishing of “facts calculated to illustrate the condition and prospects of society;” while Professor Sedgwick spoke of the Statistical Section of the British Association, to which, as I have shown, this our Society owes its origin, as dealing with “matters of fact,” “mere abstractions,” and “numerical “results,” which were to furnish “the raw material to political economy and political philosophy;” by which, as he thought probable, “the lasting foundation of those sciences might be ultimately laid.” So that this Society may be said to have from the first cultivated both social and political science in the only satisfactory way—by the accumulation of facts. The fact that a Society calling itself the “Social Science Association,” has within a few years come into existence, does not in any way invalidate our claim to have first set on foot, in fact, though not in express terms, a social science; nor, if we were to lay claim on our own behalf, to the exclusive cultivation of that science, should we do any injustice to the younger society. For it is obvious that the work done by the Social Science Association, excellent as it is, is not in the nature of Science. It may be described, without injustice, as a Social Reform Association, encouraging the discussion of alleged social evils, inviting publicity, and taking practical steps, by means of memorials, petitions, and deputations to men in authority, to promote legal and social reforms. To the members of that Association, and to all other men, we offer the services of a social and political science, slowly and painfully constructed on the basis of facts laboriously brought together, but upon the collection, arrangement, tabulation, and analysis of which we bring constantly to bear the pure bright light of scientific method. We do not allege that there is no other way to social reform and improvement but this toilsome path of ours; we know that many financial, social, and legal habits, arrangements, and procedures may be convicted of folly, inconvenience, and injustice, without the use of a single figure of arithmetic; but we also know that in almost all disputed questions, our aid is invoked, because we are believed to collect, arrange, and classify our facts in the true spirit of science, calmly and impartially, having as our primary object the discovery of truth by facts, and not the redress of grievances.

But it is time that I bring this communication to a close. In doing so, I trust that I may lay claim to some success in my attempt to give increased dignity and importance to this Society, and a new interest to the labours of its members. For myself, at least. I may say, that in offering to the Society a long series of communications on which I have bestowed much labour and thought, I acted in the belief that I was contributing to the gradual, slow growth, not of heaps of facts without reference to their use or application, but of a veritable science, social and political—a science with a definite aim, an orderly classification of subjects, a numerical method with its strict rules of synthesis and analysis—something more than the Statistik of Achenwall, nothing less than “the political economy and “philosophy” of Sedgwick ; a science which I believe it to have been the real aim of our founders to establish when they announced their intention to illustrate by facts the condition and prospects of society. I hope also to be forgiven if I so far ignore the rude conceptions of our original prospectus, as to indulge in the luxury of “opinions,” and to respect the now disused motto which bids me bind up my sheaves of wheat for others to thresh out, rather as a venerable relic of the past, than as a principle of action to be at this moment implicitly obeyed and acted upon.*

* I append a tabular sketch of the chief divisions of Statistics recognised in the original prospectus of the Society,—a prospectus drawn up by Henry Hallam, Charles Babbage, Richard Jones, and John Elliot Drinkwater, constituted a provisional committee for the purpose. The committee did not point out distinctly the subdivisions of medical statistics. They are assumed to be the two printed in a distinctive type.

Economical

(1.) Natural productions and agriculture of nations.
(2.) Manufactures.
(3.) Commerce and currency.
(4.) Distribution of wealth (rent, wages, profits, &c.).

Political

(1.) Facts relating to the elements of political institutions, the number of electors, jurors, &c.
(2.) Legal statistics.
(3.) Finance and national expenditure, civil and military establishments.

Medical

(1.) (P Preventive Measures).
(2.) (P Curative Measures, Hospitals, tec).
(3.) Population.

Moral and Intellectual

(1.) Statistics of literature.
(2.) Education.
(3.) Religious instruction and ecclesiastical institutions.
(4.) Crime.

 

Source: Journal of the Statistical Society of London, December 1865, pp. 478-493.

Image Source: Barraud & Jerrard, Photographers – The Medical profession in all countries containing photographic portraits from life v. 2, no. 13. London: J. & A. Churchill, 1874.

 

Categories
Chicago Economists Methodology

USDA Graduate School. Frank Knight Lecture on Economics Methodology, 1930

 

In an obscure publication of a series of special lectures at the United States Department of Agriculture held in 1930, I found the following interesting methodological reflections of Frank Knight that are reproduced below. An earlier post provided E.B. Wilson’s thoughts on the application of scientific methods in economics (see link below) which more or less staked out precisely the opposite position to Knight. 

_____________________

UNITED STATES DEPARTMENT OF AGRICULTURE
GRADUATE SCHOOL
SPECIAL LECTURES ON ECONOMICS
DELIVERED BEFORE THE GRADUATE SCHOOL
FEBRUARY – MARCH 1930

 

Contents: The following lectures were delivered before the students of the Graduate School in February and March 1930, and are issued in this form for present and former students of the school.

Scientific Method in Economic Research
by Dr. E. B. Wilson, President, Social Science Research Council.

Evaluating Institutions as a Factor in Economic Change
by Prof. John R. Commons, University of Wisconsin.

Analytical Methods in Agricultural Economics Research
by Dr. John D. Black, Harvard University.

Fact and Interpretation in Economics
by Dr. F. H. Knight, University of Chicago.

[…]

FACT AND INTERPRETATION IN ECONOMICS

By Dr. F. H. Knight, University of Chicago.

My task on this occasion is one to be approached with misgivings, and I do approach it with doubts. I do not see clearly and surely in the field of economic methodology, and the airing of doubts, or viewing with alarm is likely to be thought an ungracious performance. Nobody loves a bear! But after all doubts have their place. We do not get where we want to be by driving with enthusiasm and power and speed in the wrong direction. And I do feel strongly that some present trends in economic activity carry more than a threat of wasted energy. If the effort to solve a problem is to be fruitful it must be put forth in the light of a correct conception of the nature of the problem itself, and there can be no real gain from conceiving a problem more simply than it realty is, and thus make the solution appear easier.

My reference is of course to the current enthusiasm for making the study of economics “scientific,” meaning factual, concrete and quantitative, or specifically, statistical. I have to raise questions and suggest doubts as to whether the proper content of this study, or “science” can really be facts, whether it can really be a “science” if we use the term in the sense it carries in speaking of the natural sciences. As the subject announced is intended to suggest, I must argue that Economics deals rather, primarily, with meanings with what facts mean rather than facts themselves. Consequently, while of course we have to consider facts and be careful to get them “right” we have to approach them, and look at their rightness and wrongness in very different terms from those proper to the natural scientist; for the economist or other social scientist, in this view, facts are preliminary, not the real subject matter of the study. The main theme of these remarks will then be the contrast in character and method between the natural sciences and those which deal with man in society, with particular reference, of course, to economics.

At the outset, however, I want further to say that I understand the feelings of those who want to make economics an objective and quantitative science, and sympathize with them deeply. The “backwardness” of the studies dealing with man, in comparison with those dealing with nature, is superficially an obtrusive fact, and one which seems superficially to point its own moral. In the face of the contrast between the solid achievements of the natural sciences in the past few centuries, and the relative lack of advance in the understanding or control of social relations since the Ancient Greeks, it is natural to conclude that the way to reform the social sciences would be to imitate those which appear so much more successful in their task. And in particular, it is natural to hit upon the theory that the social sciences have “remained” in the “speculative” stage, while the natural sciences have taken to careful detailed observation, measurement and experimentation. In the face of this situation, to repeat the thought in more vernacular terms, it is most natural to develop a certain impatience, to insist on getting out of the stage of speculating and arguing what to do, and do something, and to put content into this by making it mean to get the facts, bring them into relation with each other and see how they may be used for prediction and control, as the physical sciences have been so successful in doing.

However, a little examination will show that the case is not so simple as that. To begin with, we have long had natural sciences of man and they tell us nothing about social events. The physics, chemistry, biology, physiology and pathology of the human organism are extensively studied and well developed and beyond a few broad and obvious statements, mostly negative, they do not reveal anything about the course of history, or make possible the prediction and control of social movements. We know that human beings will always eat, and that if they live in certain climatic zones they will have some protection from the elements. Perhaps we may add speech and recreation as biological traits. But such general information is of no concrete use to the economist, for example. To be useful to him it must go so much farther, into so much greater detail, as to what people will eat, wear, etc., and how much, and how, that the problems become different in kind as well as degree. As soon as we try to make general statements in this field, we find that any general import they have runs in terms of something quite other than the facts observed by the senses. The uniformity, as suggested already, is in the meanings, not in the concrete content of behavior. Even in the matter of food, it is men’s knowledge or beliefs about what is desirable or “fit” to eat rather than that actual physical qualities of materials which are decisive.

The best illustration in principle is in the field of communication. The sounds and characters are physical facts, but there is practically no discoverable relation between these and what they are used to convey. If we know anything for sure, we can say we know there is no connection between language differences and either physical differences in the peoples or the content of thought or emotion they wish to communicate. It appears that any person could equally well learn any language and, that with slight reservations, not important in this connection, any language can equally well express any content that is expressible.

The function of the natural sciences is to describe the properties and “behavior” of things as they appear to our senses, that is, physical things and materials in space, and behavior which reduces to rearrangement of matter in space. The essence of it is the descriptive point of view. It tells what happens, not why anything happens. From the “pure” science point of view itself (separated from practical significance) it enables us to understand the complex manifold of events in the outer world by reducing them to a manageable number of elemental general principles, especially and perhaps at last entirely, those of mechanics. It does this by finding “uniformities” or “repetitions” in events, by showing that under similar conditions similar consequences follow. Thus Newton showed that the movements of the heavenly bodies exemplify the same phenomenon of “falling” that is familiar for objects near the earth’s surface; and Darwin showed that the production of the infinite variety of plant and animal forms might be viewed as a working out of the same principle as the production of new varieties through selective breeding by the gardener or fancier.

Back of this function of science of enabling us to understand things, of explaining and so satisfying our intellectual cravings, is, as we all know, the practical function or functions, of making possible prediction and control. The fundamental point here, which seems to be overlooked in proposing to make the social sciences “scientific” is that the natural sciences themselves are based on the assumption of a sharp antithesis between man and nature. Man is the controller, nature the to-be-controlled. In fact, quite aside from this practical relationship between user and used, workman and tool, the same insuperable opposition really holds in the mere logical relationship between knower and known, or understander and thing, or matter understood. But it is clearest in the practical view. All our notions of prediction and control, by man over nature, through science are bound up in a conception of nature as passive, over against ourselves as possessed of mind, will and initiative. It is never trying to control man. More specifically, we view nature as an aggregate of things and materials in space, purposeless and inert in themselves, completely amenable to “control” from without in the particular sense of being movable from one place to another, which movement may liberate potential energy stored up in them, or modify the process of storing up or releasing such energy in some way.

When we examine the notion of prediction we find that it reduces either to the fact of “inertia,” the property of things by which they stay where they are or keep on moving as they are moving at any time, unless “acted upon” in the sense of having motion (or some new motion) imparted to them from without, or to the release of potential energy. The notion of control is always relative to movement because the only way in which human beings can act upon the external world or produce any change in it is through our voluntary muscles, which can directly produce only the, change of moving some bit of matter from one point in space to another. All changes which man produces and which constitute his “control” over nature are the results in nature of such movements of matter if they go beyond the immediate fact of motion itself. Most of our knowledge of nature, the content of the sciences, which gives variety and significance to our control activities, consists of facts regarding the processes (always the same under the same conditions) according to which energy is stored up in or released from natural materials in connection with their spatial relationships. The amount of energy communicated to natural objects by our muscles directly is generally negligible, though such a movement as striking a match may start energy changes which will explode a magazine or burn up a city.

The point here is merely that science itself depends on the assumption that just as things do not move or change their state of motion of themselves, they do not change their behavior in storing up or releasing energy of themselves, but do change as to these processes in uniform ways in response to outside acts of the form of moving them about in space in relation to each other. These uniformities are physical. A natural process, for instance, may be set off by a sound. It is said that avalanches have been started by sound waves. But in nature, the same sound will always produce the same effect. Sounds, and other causes, act as what they physically are, and not as symbols or bearers of meaning. Let us consider the contrast between this situation and that presented by the problem of applying scientific method in the field of the study of man.

In the first place, we must again note, human beings are undoubtedly natural objects, things in space, and as such they seem to be subject to all the laws and principles which science finds to hold for other objects under the same conditions. The same principles of physics and chemistry and physiology apply in the human body as elsewhere, as far as the most careful measurement reveals. But in addition some other principles seem to apply which do not hold good elsewhere. Men are more than mechanical objects which release energy in uniform ways in response to external movements of matter. They initiate changes, out of all discoverable uniformity of relation to external changes of any kind; and when they do respond to external changes, the nature of the response has relatively little uniform relation to the physical nature of the stimulus but is chiefly a matter of what we call the meaning of the stimulus-event which puts the whole occurrence, as the philosophers say, in a different universe of discourse. These meanings and the responses to them depend on the history, which is a thing made up of meanings, of social groups and the particular life-history of the individual in the group; and they are very largely free from “dependence” on anything which research has yet disclosed. As far as can be judged in the present state of knowledge (in the speaker’s opinion) the problem of understanding and explaining these phenomena must be approached in a quite different way from that of understanding and explaining physical nature. (In the scientific sense I mean; ultimately, philosophically, the problem of explaining nature is itself likely very different from that of science, for as already noted science does not pretend to give any answer to any question of why things are as they are.)

The root of the difficulty in regard to explaining and controlling human beings is the fact that the explainers and controllers are likewise human beings. It is impossible to regard human beings as of one kind when understanding and exercising control and of another and totally different kind when being understood and controlled and yet the two roles call for different characteristics. I shall return to this point presently. For the moment I wish to go a little more into detail about the “more,” in the statement that man is more than an object in space behaving in relation to other objects in accordance with universal mechanical principles.

It is possible to look at a human being in several strongly contrasting ways, and describe him in different sets of terms. We may look at him, for example, in psychological terms, and “explain” his acts by relating them to mental states. Many changes can be wrung on this theme. The philosopher Hegel gave a logical or dialectical interpretation of history, and the British psychologists of the early nineteenth century explained human nature in terms of association of ideas.

Another possible approach is in terms of “institutions,” a term which is being much used in economics these days, and very loosely used, and largely misused. An institution in the proper sense is a phenomenon of the nature of the language. It is neither a mechanical response to a physical stimulus nor a deliberately contrived procedure for achieving an end. Language is of course a tool, it is seen to be one after it has developed, but no one ever contrived it (in so far as it is a pure type of institution). It is believed by students of the subject that language actually developed primarily as a vehicle of emotional expression and acquired its more utilitarian functions secondarily. In any case, the methodological point is that the student of language treats it as an entity on its own account, indeed without very express reference to human beings or their interests and acts. It seems to have its own laws of relationship and of change, much like an organic species. It is a figure of speech, but a descriptive one, to call the human group the soil in which a language, or other institution, grows. Just as the plant one gets depends on the seed sown and not to any great extent on the soil, so it seems that institutions grow and change without much reference to the human beings who carry them on — though sensitive to contact with other related institutions with which they may hybridize, again much like plants.

There is much justification for an “institutional” approach to what we call economic phenomena. If we look at the facts of wealth and the processes of its production, distribution and consumption, and ask “why” these things are as they are, it is a very defensible answer to hold that they are customs which have grown up, much in the way in which a language grows, and to be “explained” only by giving the details of the history of that growth. Such an interpretation should, it seems clear to me, be kept very distinct from the “statistical” approach to the same problem. Economic statistics stand as a method at the opposite pole from institutional history. There is little or no distinctly human content of any kind in them. They relate almost entirely to commodities as such, and to external means of economic life rather than that life itself.

It is to be noted that the traditional or orthodox economic thought, in the British utilitarian line, is very different from both of these; in fact institutionalism and business statistics represent reactions in opposite directions from the utility-and-cost, supply-and-demand economics. The conception of human nature involved in the latter is interesting and needs to be clearly understood. Man is not looked on as a physical behavior mechanism, or a psychological being, or as the bearer of institutions, but as a being who has wants and limited means for satisfying them, and who is confronted with the problem of making the means go as far as possible. The means and ends of action are data, the procedure itself problematical. This standpoint will be clearer if it is contrasted, on the one hand, with a mechanical view of human nature, in which the response is completely determined by the conditions and hence is not in any sense problematic, and, on the other hand, with a view (or with a type of situation) in which action is conceived in terms of means and end but the end is also conceived of as problematical. As I myself see the matter the view of “unsophisticated common-sense” is in the main that of the classical economics. We assume that people in general know what they want, and are confronted with the problem of getting it, in the maximum degree, with the limited means at hand, which problem they “solve” more or less completely, through intelligence or luck. The problem itself, the ends to be realized and the means and conditions are given in the person and his situation, but his activity in “solving” it is peculiar in that it involves effort and in general a greater or smaller margin of error, these being absent from mechanical reactions.

When we look critically at human behavior, it seems to me that we are forced to recognize that the ends of action are problematic in about as great a degree as the means. Life seems to be an exploration as much as it is a quest in which we know what we are trying to find. This conception might be designated by speaking of the ethical man, in contrast with the economic man and the mechanical or behavioristic man, a variation of which would be the institutional man.

The difficulty is that all these views, and still others which I cannot here even list, have some degree of validity, and yet it is most difficult to make them seem consistent with each other. The philosopher Kant gave effective statement to a part of the problem, the conflict between the mechanical and ethical view of human nature, in his famous statement that man is at once subject to universal causality and a self-legislating member of a kingdom of ends. As I see the “facts” – which are facts in the sense that everyone treats them as such when he is not expressly trying to prove some theory – the situation is much more complicated, and hence much “worse” from the standpoint of our intellectual cravings and practical needs for simplicity. We seem to have to reconcile ourselves to the fact that man is at once not merely two but a great many different kinds of being, kinds which seem logically contradictory. He is different kinds under different circumstances, or capriciously or accidentally, and he is even several kinds in the same situation. He is a cause-and-effect mechanism and a bearer of culture or “soil” in which institutions grow according to their own laws of growth, a being of irrational judgments and a being who deliberates and decides intelligently (more or less!) and this both regarding procedures for reaching ends which he accepts unconsciously and also about ends to be chosen and pursued. For anything like completeness we should have to add still other items to the list, such as that he is commonly and in all sorts of degrees a dreamer and mystic and even an intrinsically “contrary” being and often takes a perverse delight in being thwarted and punished and in having grievances against the world and all and sundry in it.

It is indeed a formidable if not forbidding task to theorize about such a creature or formulate generalizations in terms of which his actions can be predicted and controlled. But it is hardly in conformity with the scientific attitude to insist on false simplification or refuse to face the facts because they present difficulties. The contrast between the problem of prediction and control in the case of a mechanism and in the case of human beings may be seen in a number of kinds of simple illustrative cases. In the first place, the entire theory of science depends, as noted above, on the repetitiveness of events and uniformity of relationships; the same effects follow the same causes. But in the mere external facts of the case this is not true of human beings. Physically, chemically and physiologically they are alike, enough to infer from one case to another, within limits, though it must be remarked that even in this field the science of medicine is seriously embarrassed by unaccountable differences in the reaction of different cases to the same treatment. Moreover, the doctor, if candid and shrewd, relies perhaps as much on psychological treatment wisely varied to fit the case as he does on drugs and physical therapeutic agents. On the plane of social behavior, however, even this minimum of uniformity seems conspicuously absent. Experiment with one human being simply does not tell how another will respond to the same experiment, as nearly identical as it is possible to make the repetition.

And worse, it is in the very nature of the creatures that the same one will not ordinarily respond in at all the same way if an experiment is repeated. Let anyone try the simplest experiment, such as telling another a story or sticking him with a pin or offering him a present of a five dollar bill, and then repeat the “stimulus.” It is, as just stated, the very nature of a human being not to be at all the same person with reference to a repeated situation as to its first occurrence. A gun or a trap which has been discharged or sprung is, when reloaded or reset, the same as before, but you cannot restore a person to the original condition, even to the degree within which it is possible to find another like him. People are different from mechanical objects in that they have a history. In part this difficulty may be avoided by taking them in groups, but groups also are always unlike and each group has a history. None of us is like his forefathers, even in the tenuous sense in which he is like his contemporaries. Our “situations” are very different, and our responses are different even where the situations appear similar.

This does not mean that the case is hopeless, that there is no place for intelligence in human relationships, or even that it is impossible to effect improvement through diligent observation and study. Our everyday experience proves the contrary. With all our bewilderment, we do have a fair knowledge of what to expect of our fellow-beings in ordinary situations and of how to treat them to secure cooperation and orderly living. It is a question of method. We do not acquire our common-sense knowledge of how to get along with our fellows in the same way as our common-sense knowledge of how to respond to and use natural objects, and it is reasonable to suppose that in the one case as in the other improvement will be secured by refinement along the general line of common-sense procedure. The essential fact in understanding our fellow human beings is primarily that we communicate with them. Thus in a sense we get inside of them instead of merely observing them from without. Of course our communication is based upon external observation, but the essential difference remains.

It is impossible to elaborate upon this difference here, and it should not be necessary. The heart of it is the contrast between a more direct instinctive but unformulated knowledge, based on familiarity on the one hand, and, on the other, reduction to rule in terms of physical units. A good illustration is the learning of a language. We can and do, without great difficulty, learn the meanings of sounds and characters and recognize them with fair accuracy and with little effort. But to base such knowledge on physically measured specifications as to the precise wave-forms or shapes would be quite out of the question practically, though a certain amount of such study may be interesting afterwards. The principle holds throughout the field of human phenomena and relationships. We describe people and works of art and literature and other products with a fair degree of intelligibility, and recognize them by their traits, though we could not make a beginning at putting this knowledge in accurate, scientific, physical terms. (Of course the artist who wishes to simulate effects in a physical medium does have to know in a sense how the lines and colors go, but his knowledge is also an immediate feel of how to do the thing and nearly as far remote from the ideal of mechanical “directions” as is the interpretative recognition of the layman.

My concrete suggestion is that if economics and the social sciences want to make more rapid progress they must give up the visionary ideal of building a society from blueprints and dimensions as we build a house and quit trying to imitate engineering and the sciences upon which it is based and turn rather to the study of their own data and. the processes by which we do come to have some intelligence in relation to these data on the level where progress, has already been achieved. That is, we should learn from “art” in the broad sense, and from the way in which the arts are learned and taught rather than from physical science and engineering technique.

It is to be admitted that in an important sense this is less satisfying. Our minds to crave the definite rule, the fool-proof formula. But it is a question of facing facts, and the actual character of the problem. It will never be as simple and definite a matter to improve the grammar or the morals of a social group as it is to build a bridge or compound a chemical. But we shall not make the task easier by insisting on applying methods which would admittedly be more satisfactory if they could be applied but which simply will not work because it is not that kind of a problem.

In conclusion I wish briefly to call especial attention to two sets of facts. The first is that in controlling human beings the “techniques” employed include such things as teaching, persuading, exhorting, or finally deception and coercion (which may presumably be practiced for “good” as well as “bad” ends). The point is that such concepts hove no meaning in connection with the procedure for controlling physical objects. When these procedures are sometimes applied to the higher animals it is evident that we are treating them like human beings rather than like mechanisms.

The second fact, or set of facts, is closely related to the first, but of even wider significance. It is that as words like persuade and still more deceit and coercion imply, the moral implications of the control of human beings are decidedly dubious. There is not time to develop either of these points as they deserve. But in a society as expressly and vociferously grounded on the ideal of freedom as ours is, it should not be necessary to elaborate this second one at great length. I am astounded at the facility with which discussions on “controlling” society and individuals pass over the essential questions of who is to do the controlling and how society is to control its controllers. In the economic field specifically I wish personally to register hearty agreement with whoever it was who made the suggestion that we ought to be subsidizing schools of resisting salesmanship instead of schools of salesmanship. And similarly in the political field. It is questionable much of the time whether our so-called criminals are either less ethical or less defiant of the actual law and constitution than are the officials supposed to safeguard the one by enforcing the other. It does not seem to me very intelligent to get all excited over developing techniques for “control” without having some advance information as to who is to use them and “on” whom they are to be used. Particularly since in view of the type of people who do get into power in democracies it seems fairly certain that the scientist himself will generally be in the group the techniques are used “on” and not the group they will be used “by”.

Irresistibly we are thrown back on the general philosophical problem already suggested but too large and too technical to go into here, the relation between controller and controlled, and between student and subject-matter. In the natural sciences it is taken for granted that these are wholly separate and directly opposed. It is “man” who studies and uses “nature!” It is a pernicious fallacy to carry over this type of thinking into the field where the student and subject-matter are of the same kind, and still more where they are identified. If the one-sided relationship is not preserved, we find ourselves committed to such absurdities as that when the scientist is experimenting with a piece of apparatus it is also in the same sense experimenting with him. The whole problem of control in society must be thought through in different terms. In any society which has aims and ideals, in any society which is not owned outright by an absolutely ruthless despot, “control” is a matter of mutual relationships, not of the one-sided character referred to by terms like control. Its members are controllers of nature and to be made in the highest degree controllers of themselves, not tools or pawns for some ruler.

The real problem of social control is the problem of securing agreement as to policy and as to the functions of individuals in promoting it where policy has to be social, and of securing the minimum of interference (“control”) for each individual in the field of what are properly his private affairs. At no important point is this problem at all similar to that confronting an engineer or any real controller. Such “control” as is legitimate in society must be “with the consent of the controlled” which makes it a categorically different phenomenon. The only exceptions admissible are the cases of individuals proven incompetent to participate in “free” society, and even those are still to be treated as far as possible as ends in themselves or ultimately perhaps as “enemies,” but in any case, never (in the modern civilized world), as means and instruments to the purposes of others, which is the position taken for granted with regard to natural objects when we talk in the scientific sense of knowledge, prediction and control.

 

Source: United States Department of Agriculture Graduate School. Special Lectures on Economics. Washington, D.C.: 1930. Pages 37- 45.

University of Chicago Photographic Archive, apf1-03516Image Source: , Special Collections Research Center, University of Chicago Library.