Categories
Harvard Suggested Reading Syllabus

Harvard. Honors Economic Theory, Chamberlin/Leontief/Taylor, 1939-40

In the following academic year (1940-41) this year-long course was broken into two distinct semester courses, Economics 1a (Economic Theory/Chamberlin) and Economics 1b (The Intellectual Background of Economic Thought/Taylor). From the enrollment statistics and the course catalogue we see that this was mainly a course taken in the junior year by undergraduates pursuing an A.B. with honors in economics.

Since this posting, I have included a transcription of the final examination questions for the second term of this course.

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[Harvard Catalogue Course Listing]

Economics 1. Economic Theory

Mon., Wed., and (at the pleasure of the instructors) Fri., at 11. Professor Chamberlin, Dr. O. H. Taylor, and Associate Professor Leontief.

This course will be conducted mainly by discussion. It is open only to candidates for the degree with honors. The first half (but not the second) may be taken as a half-course with the consent of the instructor.

Source: Harvard University. Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1939-40 (2nd ed.). Official Register of Harvard University, Vol. XXXVI, No. 42 (September 22, 1939), p. 154.

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[Course Enrollment]

[Economics] 1.  Professor Chamberlin, Dr. O. H. Taylor, and Associate Professor Leontief. – Economic Theory.

1 Graduate, 1 Senior, 51 Juniors, 1 Other:  Total, 54.

Source: Harvard University. Report of the President of Harvard College and Reports of the Departments, 1939-40, p. 98.

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ECONOMICS 1

1939-40

First Semester

  1. The Law of Supply and Demand. Meaning and Generality. Relation to the Law of Cost. Cost curves and supply curves. Relation to monopoly and to competition. Pure and perfect competition. Market problem illustrating deviations from “equilibrium” as defined by perfect competition. Equilibrium vs. the equation of supply and demand.
    Mill – Principles, Book III, chapters 2, 3, 5.
    Chamberlin – Monopolistic Competition, chapters 1, 2.
    Henderson – Supply and Demand, chapters 1, 2.
    Marshall – Principles, pp. 348-50; p. 806 note.
  2. Competitive theory, illustrated by Marshall.
    Marshall – Principles, Book V, chapters 1-5; Book IV, chapter 13; Book V, chapters 8, 9, 10, 12.
  3. The effect of small numbers in the market.
    Monopolistic Competition, chapter 3.
  4. Product differentiation. Co-existence and blending of monopoly and competition. Output (sales) as a function of price, “product” and selling outlays. Price-quantity relationships examined in some detail, selling costs and products as variables more briefly.
    Monopolistic Competition, chapters 4, 5, 6, 7 (pp. 130-149); Appendices C, D, E.
    Alsberg, C.L. – “Economic Aspects of Adulteration and Imitation”, Q.J.E., Vol. 46, p. 1 (1931).
  5. Production and Distribution. Diminishing returns. Diminishing marginal productivity. The laws of cost. General effect of monopoly elements on the analysis.
    Garver & Hansen – Principles, chapter 5.
    Wicksell – Lectures on Political Economy, Vol. I, pp. 101-133 (omit all small type except on pages 111, 113, 114 and 115.) [Knut Wicksell, Vorlesungen über Nationalökonomie auf Grundlage des Marginalprinzipes, 2 vols. [1913]]
    Viner, J.  – “Cost Curves and Supply Curves,” Zeitschrift für Nationalökonomie, 1931.
    Monopolistic Competition, Appendix B.
  6. Theory of Wages.
    Hicks – Theory of Wages, Part I.

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Economics 1
Second Semester
1939-40

  1. Theory of Wages (continued). Professor Leontief.
    Hicks, J. R., Theory of Wages, Chs. 9 and 10.
    Lester, R. A., “Overtime Wage Rates,” The American Economic Review, December, 1939. (Suggested)
    Douglas, P. H., The Theory of Wages, Ch. 13.
  2. Theory of Rent.
    Ricardo, D.Principles, Ch. 3 [sic, Ch. 2 intended].
    Marshall, Principles, Book V, Chs. 10,11.
  3. Theory of Capital and Interest.
    Clark, J. B., Distribution of Wealth, Chs. 9, 20.
    Böhm-Bawerk, Positive Theory of Capital, Books II, Chs. 2 and 5, Book V.
    Fisher, Irving, The Rate of Interest, Chs. 5, 6, and 7.
  4. Production and Distribution Interrelated.
    Wicksell, Lectures on Political Economy, Vol. I, pp. 196-206 (omit small type)
    [Knut Wicksell, Vorlesungen über Nationalökonomie auf Grundlage des Marginalprinzipes, 2 vols. [1913]].
    Keynes, The General Theory of Employment, Interest and Money, Chs. 2 and 8, paragraph B.
  5. Profits. Professor Chamberlin.
    Marshall, Book VI, chapter 5, section 7; Chs. 7, 8.
    Taussig, Principles, Vol. II, Ch. 50, section 1.
    Henderson, Supply and Demand, chapter 7.
    Berle and Means, The Modern Corporation, Book IV.
    Chamberlin, Monopolistic Competition, Ch. 5, section 6; Ch. 7, section 6: Appendices D, E; Ch. 8.
  6. Welfare Economics. Dr. O. H. Taylor.
    Pigou, A. C. Economics of Welfare (3rd ed.), Part I, Chs. 1, 2, 3, 7, 8; and Part II, Chs. 1-8 inclusive, 9, 11, 14, 15, 16, 17. [4th edition, 1932]
  7. Criticisms of Economic Theory, its Method and Assumptions. I. Psychology and Economics.
    Mitchell, W. C., “The Rationality of Economic Activity,” Journal of Political Economy, Vol. 18, pp. 97 ff., and 197 ff. (February, March 1910).
    Mitchell, W. C., “Human Behavior and Economics,” Quarterly Journal of Economics, Vol. 29, p. 1 ff. (November 1914).
    Mitchell, W. C., “The Prospects of Economics,” in The Trend of Economics, volume edited by R. G. Tugwell.
  8. Criticisms of Economic Theory, its Method and Assumptions. II. Economic Principles as “Natural Laws.”
    Tugwell, R. G. “Experimental Economics,” part on “Natural Law,” in volume The Trends of Economics.
    Taylor, O. H., “Economics and Natural Law,” Quarterly Journal of Economics, Vol. 44, p. 1ff., and p. 205 ff.

 

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Source:  Harvard University Archives. Syllabi, course outlines and Reading lists in Economics, 1895-2003 (HUC 8522.2.1), Box 2; Folder: “Syllabi, course outlines and reading lists in Economics, 1939-40”.

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Chicago Exam Questions Suggested Reading Syllabus

Chicago. Theory of Income and Employment. Domar, 1948


Jacob Marschak’s course “The Theory of Income and Employment” was taught by the (visiting) assistant professor of economics and research associate in the Cowles Commission, Evsey D. Domar, in the Spring Quarter of 1948. The appointment must have taken place after the Announcements for 1947-1948 were published in May, 1947, so one presumes there was a relatively late change in plans.

For those interested in Domar’s early backstory,  Evsey (Joshua) Domashevitsky arrived in the U.S. on the S.S. Taizo Maru that departed 27 July 1936 from Kobe, Japan and arrived at the port of Los Angeles, California August 16. Domar (“race: Hebrew; nationality: White Russian”) was born April 16, 1914 in Lodz, Poland and last resided in Dairen, Manchuria (now Dalian or Talien, China) before he left for the U.S. He worked his way through UCLA and his graduation photo from the college yearbook graces this posting.

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ECONOMICS 335
THE THEORY OF INCOME AND EMPLOYMENT

Spring, 1948
E. D. Domar

Required Reading List

It is assumed that the students are familiar with the contents of the first 20 chapters of A. P. Lerner’s Economics of Control.

 

PART I.   THE MEASUREMENT OF TOTAL OUTPUT.         March 30 – April 1

Simon Kuznets, National Income and Its Composition, V. I, Ch. 1.
J. R. Hicks and A. G. Hart, The Social Framework of the American Economy, ch. 3, 8, 10-13, 15, 16.
National Planning Association, National Budgets for Full Employment.
Survey of Current Business, National Income Supplement, July, 1947.

 

PART II.   THE ESSENCE OF THE THEORY.    April 3- 28.

J. M. Keynes, The General Theory of Employment, Interest and Money.
A. P. Lerner, Economics of Control, ch. 21-25.
American Economic Association, Readings in Business Cycle Theory, ch. 5-12.
S. E. Harris, editor. The New Economics, ch. 9, 11-15, 19, 33, 36.
Oscar Lange, Price Flexibility and Employment, pp. 1-90.
Milton Friedman, “Lange on Price Flexibility and Employment,” American Economic Review, Sept. 1946 (Reprints in Harper Reserve Room).
Lawrence Klein, The Keynesian Revolution, ch. 3-5.
Gottfried Haberler, Prosperity and Depression, Ch. 8, 13.
A. C. Pigou, “The Classical Stationary State,” The Economic Journal, December 1943.
J. E. Meade and P. W. S. Andrews, “Summary of Replies to Questions on Effects of Interest Rates,” and “A Further Inquiry into the Effects of Rates of Interest,” Oxford Economic Papers, No. 1, 1938 and No. 3, 1940.
Simon Kuznets, “Relation between Capital Goods and Finished Products in the Business Cycle,” in Economic Essays in Honor of Wesley Clair Mitchell.
R. F. Kahn, “The Relation of Home Investment to Unemployment,” Economic Journal, 1931.

 

PART III.   UNDERCONSUMPTION, MATURE ECONOMY, AND CAPITAL ACCUMULATION.        May 4-14.

A. H. Hansen, Fiscal Policy and Business Cycles.
A. H. Hansen, Economic Policy and Full Employment, ch. 15, 16, Appendix B.
E. D. Domar, “Expansion and Employment,” American Economic Review, 1947 (reprints on reserve).
E. D. Domar, “The Problem of Capital Accumulation,” (Mimeographed).
P. M. Sweezy, The Theory of Capitalist Development, ch. 10, 12.
J. A. Schumpeter, Capitalism, Socialism and Democracy, Part II.
G. Terborgh, The Bogey of Economic Maturity.
Readings in Business Cycle Theory, ch. 19-20.

 

PART IV.   POLICY          May 15- June 10.

(in addition to preceding readings)

Board of Governors of the Federal Reserve System, Public Finance and Full Employment, Postwar Economic Studies No. 3, pp. 1-21, 53-68.
A. H. Hansen, Economic Policy and Full Employment, parts IV, V, VI.
M. De Chazeau and others (Committee for Economic Development) Jobs and Markets: How to Prevent Inflation and Depression.
E. F. Burchard and others (Oxford University Institute of Statistics), The Economics of Full Employment.
Mints, Hansen and others. Symposium of Fiscal and Monetary Policy, The Review of Economic Statistics, May 1946.
J. Mosak and Arthur Smithies, “Forecasting Post-War Demand,” Econometrica, 1945.
H. Simons, “Hansen on Fiscal Policy,” The Journal of Political Economy, 1942.
National Budgets for Full Employment
Economic Report of the President
, January 1948.
A. P. Lerner and F. D. Graham, Planning and Paying for Full Employment.
M. Friedman, “A Monetary and Fiscal Framework for Economic Stability,” (Mimeographed).
W. H. Beveridge, Full Employment in a Free Society, a general survey, with emphasis on Appendix C.

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Economics 335
Final Examination

June 17, 1948
One hour and fifteen minutes

Answer all questions. They carry equal weights.

  1. Ever since the end of the war, it has been asserted by various authorities that increased production is the best cure against inflation. But it can be also argued that while increased production enlarges the supply of goods, it also generates additional income and therefore demand. So in the end it may or it may not mitigate inflation.
    Analyze this question and try to find the correct answer. The quality and depth of your analysis will count more than its quantity.
  2. “In spite of his claims to the contrary, Keynes did not succeed in proving the possibility of underemployment equilibrium if wages and prices were flexible. That a long period of unemployment could persist as a result of wage and price rigidity we had known long before Keynes.”
    Comment on this statement and show what effects would flexible prices and wages have on elimination of unemployment (in a depression) and stabilization of the price level (in an inflation). Indicate clearly every step in your analysis. What practical recommendations follow from your discussion?
  3. You were employed by the U. S. Bureau of the Budget in 1941 to make an economic forecast and to recommend practical policy measures to prevent both unemployment and inflation in the year 1942, when large war expenditures were expected. Following roughly the method of national budgets (or an equally good alternative one) set up a hypothetical but reasonable numerical model for the year 1942. Show clearly (a) the information you will require; (b) the assumptions you will make; (c) how (a) and (b) are brought together; and (d) policy recommendations you will make. Indicate each step explicitly.
  4. Write for some twenty minutes on any subject covered in the course, but not included in the preceding questions and not studied in your term paper. Make sure you have something worth-while to say.

 

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Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Evsey D. Domar Papers, Box 15, Folder: “Macroeconomics, Old Reading Lists”; Box 16, Folder: “Final Exams. Johns Hopkins, Stanford, U of Michigan”.

Image Source: Joshua Domashevitsky (Evsey D. Domar), University of California at Los Angeles, Bruin Life Yearbook/Southern Campus Yearbook, 1939, p. 52. Caption to graduation picture: “Joshua Domashevitsky, A. B./Economics/ Transferred from State College of Law, Manchuria: Foreign Trade Club; Artus, Chancellor of the Exchequer 4.”

Categories
Chicago Suggested Reading Syllabus

Chicago. International Trade and Policy. Advanced Graduate. Metzler, 1948 and 1950

Today we have the reading list for an early iteration of Lloyd A. Metzler’s second advanced course in international economics: the theory of foreign trade and commercial policy. The course was held in the Winter quarter of 1948 at the University of Chicago. I have used squared brackets and bold-blue text to indicate additions and  other changes or deletions for his Spring Quarter 1950 reading list.

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[Course Description]

[Economics] 371. INTERNATIONAL TRADE AND COMMERCIAL POLICY. Price theory and international trade; the gains from international specialization. International trade and the distribution of income. Historical and theoretical discussion of the theory of tariffs. Commercial policies of particular countries, including the United States, the United Kingdom, and France. Commodity agreements and cartels. The growth of state trading. The new mercantilism. Prereq: Econ 330 or equiv. Spr: TuThS 9:30; Metzler.

Source: University of Chicago Announcements Division of the Social Sciences, 1949-1950. p.28.

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[Handwritten] Winter 1948
[Date noted with course title in 1950]

 

ECONOMICS 371
[Spring Quarter – 1950]

Major Topics and Selected Reading

I. Mercantilism and the Classical Theory of the Gains from Trade.

J. Viner, Studies in the Theory of International Trade, Chapters 1, 2.
Adam Smith, The Wealth of Nations, Book IV.
David Ricardo, Principles of Political Economy and Taxation, Chapter 7.
J. S. Mill, Principles of Political Economy, Book III, Chapters 17, 18.
J. M. Keynes, General Theory of Employment, Interest and Money, Chapter 23.

II. Modern Price Theory and the Gains from Trade.

Alfred Marshall, Money, Credit and Commerce, Appendix J.
Gottfried Haberler, The Theory of International Trade, Chapters 9, 10, 11, 12.
J. Viner, Studies in the Theory of International Trade, Chapters 8, 9.
W. W. Leontief, “The Use of Indifference Curves in the Analysis of Foreign Trade,” Quarterly Journal of Economics, 1933. [reprinted in Readings in the Theory of International Trade]
P. A. Samuelson, “Welfare Economics and International Trade,” American Economic Review, 1938.
[F. D. Graham, “The Theory of International Values Reexamined,” Quarterly Journal of Economics, 1923, reprinted in Readings in the Theory of International Trade.
F. D. Graham, The Theory of International Values, Princeton, N. J., 1948.

E. F. Heckscher, “The Effect of Foreign Trade on the Distribution of Income,” Ekonmish Tidshrift, 1919, reprinted in Readings in the Theory of International Trade.
P. A. Samuelson, “International Trade and the Equalization of Factor Prices,” Economic Journal, June, 1948.
P. A. Samuelson, “International Factor Price Equalization Once Again,” Economic Journal, June, 1949.]

III. The Theory of Tariffs

Gottfried Haberler, The Theory of International Trade, Chapters 13, 14, 15, 16, 17.
Alfred Marshall, Money, Credit and Commerce, Chapters 6, 7, 8, 9, 10, 11.
Tibor de Scitovsky, “A Reconsideration of the Theory of Tariffs,” Review of Economic Studies, Vol. 9, 1941-42.[reprinted in Readings in the Theory of International Trade.]
F. W. Taussig, International Trade, Chapter 13.
W. F. Stolper and Paul A. Samuelson, “Protection and Real Wages,” Review of Economic Studies, 1941. [reprinted in Readings in the Theory of International Trade.]
F. D. Graham, “Some Aspects of Protection Further Considered,” Quarterly Journal of Economics, 1923. [Item replaced by: F. D. Graham, Protective Tariffs, Princeton, N. J., 1942.]

 

IV. Some Aspects of Commercial Policy

F. W. Taussig, Some Aspects of the Tariff Question.
F. W. Taussig, Tariff History of the United States.
F. Benham, Great Britain Under Protection.
E. B. McGuire, The British Tariff System.
F. A. Haight, French Import Quotas.

 

V. The Reciprocal Trade Agreements Program of the United States [Section title changed: Recent Developments in Commercial Policy]

H. J. Tasca, The Reciprocal Trade Policy of the United States, 1938.
G. Beckett, “The Effect of the Reciprocal Trade Agreements upon the Foreign Trade of the U. S.,” Quarterly Journal of Economics, November 1940.
[J. M. Letiche, Reciprocal Trade Agreements in the World Economy, 1948.
U. S. Department of State, Analysis of General Agreement on Tariffs and Trade, Washington, D. C., 1947.
U. S. Department of State, Havana Charter for an International Trade Organization, 1948.]

 

VI. Cartels and Commodity Agreements.

C. Edwards, International Cartels, 1945.
E. S. Mason, Controlling World Trade, 1946.
J. S. Davis, International Commodity Agreements: Hope, Illusion, or Menace?, 1947.
[G. W. Stocking and M. W. Watkins, Cartels or Competition?, 1948.]

 

VII. The International Trade Organization [This section dropped in 1950]

Draft Charter of Proposed International Trade Organization, Geneva, 1947.

 

VIII. International Relations and the Structure of World Trade.

A. O. Hirschmann [sic], National Power and the Structure of Foreign Trade, 1945.
J. Viner, “International Relations Between State Controlled National Economies,” American Economic Review, 1944 Supplement.
H. S. Ellis, Bilateralism and the Future of International Trade, Princeton University Essays in International Finance.
J. M. Keynes, “National Self Sufficiency,” Yale Review, 1933. [Keynes dropped in 1950]
D. H. Robertson, “The Future of International Trade,” Economic Journal, 1938.

 

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Lloyd Appleton Metzler Papers, Box 9, Folder: “Econ. 371”.

 

 

 

Categories
Chicago Suggested Reading Syllabus

Chicago. Advanced International Monetary Economics. Metzler, 1950

At the University of Chicago graduate courses numbered in the 200’s were called “Intermediate Courses” and those in the 300’s were “Survey and problem courses in special fields…The main purpose…is to prepare students for research.” The 400’s courses were for “Research, reading, and seminars”.

The Departmental course requirements for an M.A. in economics at the University of Chicago in 1950: “Normally fifteen courses (or their equivalent) in economics, eight of which ordinarily will be at the 300 level.”

The Departmental course requirements for a Doctor’s degree at the University of Chicago in 1950: “Completion of a program of work in economics at the 300-400 level ordinarily embracing at least six quarters of formal training”. Presumably this means in addition to the eight quarters at the 300 level for the M.A.

A few obvious misprints have been corrected and I have attempted to impose a consistent formatting (e.g. book titles underlined, etc.).

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[Course Description]

[Economics] 370. MONETARY ASPECTS OF INTERNATIONAL TRADE. Foreign payments and receipts. Classical and modern theories of adjustment of the balance of payments. Theories of exchange rates. Capital movements in the balance of payments. Postwar monetary plans. Prereq: Econ 330, 335, or equiv. Win: MTuWF 8:30 Metzler.

Source: University of Chicago.Announcements: The Division of the Social Sciences, Sessions of 1950-1951, p. 31.

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ECONOMICS 370
Major Topics and Selected Reading
Winter, 1950

Lloyd A. Metzler

I. Elementary Principles of Foreign Payments and Receipts.

G. Haberler, The Theory of International Trade, Introduction.
P. T. Ellsworth, International Economics, Part I, Chaps. VII and VIII.

 

II. The Balance of Payments and the Measurement of Income.

J. R. Hicks and A. G. Hart, The Social Framework of the American Economy, Chapter 12.
R. F. Bennett, “Significance of International Transactions in National Income,” National Bureau of Economic Research, Studies in Income and Wealth, Vol. VI, 1943.
Dept. of Commerce, National Income Supplement to Survey of Current Business, 1947.

 

III. Classical and Modern Theories of Adjustment of the Balance of Payments.

R. F. Harrod, International Economics, Chapters VI and VII.
F. Machlup, International Trade and the National Income Multiplier. Chaps. I-V.
F. W. Taussig, International Trade, Chaps. XVII-XXI.
J. Viner, Canada’s Balance of International Indebtedness.
League of Nations, International Currency Experience, Chapters I and IV.
G. Haberler, The Theory of International Trade, Chaps. II and III.
J. Viner, Studies in the Theory of International Trade, Chaps. VI and VII.
R. Nurkse, “Conditions of International Monetary Equilibrium”, Princeton University, Essays in International Finance, reprinted in Readings in the Theory of International Trade.
F. W. Paish, “Banking Policy and the Balance of International Payments”, Economica, 1936, reprinted in Readings.
W. A. Salant, “Foreign Trade Policy in the Business Cycle,” Public Policy, reprinted in Readings.

 

IV. Theory of Income Transfers.

J. M. Keynes, “The German Transfer Problem,” Economic Journal, 1929, reprinted in Readings.
B. Ohlin, “Transfer Difficulties, Real and Imagined,” Economic Journal, 1929, also rejoinder by Keynes and reply by Ohlin in subsequent issues, reprinted in Readings.
L. A. Metzler, “The Transfer Problem Reconsidered,” Journal of Political Economy, 1942, reprinted in Readings.
C. Iversen, International Capital Movements, Part II A.

 

V. Fluctuating Exchange Rates

League of Nations, International Currency Experience, Chapter V.
J. Robinson, Essays in the Theory of Employment, Part III, reprinted in Readings.
F. W. Taussig, International Trade, Part III.
G. Cassel, Money and Foreign Exchange after 1914.
S. E. Harris, Exchange Depreciation.
International Monetary Policies, Postwar Economic Studies, No. 7, Board of Governors of the Federal Reserve System.
J. E. Meade, “Financial Policy and the Balance of Payments,” Economica, May, 1948.
“Notes on Foreign Currency Adjustments”, Federal Reserve Bulletin, November, 1949.
T. Balogh, “Exchange Depreciation and Economic Readjustment,” Review of Economics and Statistics, November, 1948.
F. Machlup, “The Theory of Foreign Exchange,” reprinted in Readings.
“Readjustment of Foreign Currency Values”, Federal Reserve Bulletin, October, 1949.

 

VI. Multilateral and Bilateral Monetary Policies.

H.S. Ellis, “Bilateralism and the Future of International Trade,” Essays in International Finance, No. 7, Princeton, N. J. reprinted in Readings.
R. Frisch, “Forecasting a Multilateral Balance of Payments,” American Economic Review, XXXVII (September 1947) 535-551.
R. Frisch, “Outline of a System of Multi-Compensatory Trade,” Review of Economics and Statistics, November, 1948.
R. Hinshaw, Professor Frisch on Discrimination and Multilateral Trade, “Review of Economics and Statistics, November, 1948.

 

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Lloyd Appleton Metzler Papers, Box 9, Folder: “Reading Lists 370”.

Source Image: Posting by Margie Metzler on the Metzler Family Tree at the genealogical website, ancestry.com.

Categories
Chicago Suggested Reading Syllabus

Chicago. Intermediate International Monetary Economics. Lloyd A. Metzler, 1949

 

 

The Departmental course requirements for an M.A. in economics at the University of Chicago in 1949: “Normally fifteen courses (or their equivalent) in economics, eight of which ordinarily will be at the 300 level.” The courses numbered in the 200’s were called “Intermediate Courses” and those in the 300’s were “Survey and problem courses in special fields…The main purpose…is to prepare students for research.” The 400’s courses were for “Research, reading, and seminars”.

The final examination questions for the summer quarters of 1947 and 1948 for this course have been posted as well.

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[Course Description]

[Economics] 270. INTERNATIONAL ECONOMICS. The nature of international payments and receipts; foreign trade and the banking system. The gold standard in the interwar period. The breakdown of the gold standard and the period of fluctuating exchange rates. Exchange controls, clearing agreements and payments agreements. The second world war and the foreign exchange markets. The position of the International Monetary Fund and the International Bank for Reconstruction and Development in the present world economy. Prereq: Econ 209, 230 [Intermediate Economic Theory, Introduction to Money and Banking, respectively], or equiv. Aut: MWF 8:30; Metzler.

 

Source: University of Chicago. Announcements, Volume XLIX, Number 9: The Division of the Social Sciences, Sessions of 1949-1950, July 1, 1949, p. 24.

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Economics 270
Major Topics and Selected Reading
Autumn Quarter 1949

I. Foreign Exchange Markets and Equilibrium of the Balance of Payments

Enke and Salera, Chapters 4, 6.
Southard, Chapters 2, 3.
International Monetary Fund, pp. 1-24.
U. S. Department of Commerce, The United States in the World Economy, pp. 1-25, 137-200.
U. S. Department of Commerce, International Transactions of the U. S. During the War.

II. The Pre-War Gold and Gold-Exchange Standards

Enke and Salera, Chapters 8, 9, 12, 28.
League of Nations, Chapters 1, 2, 3, 4.
U. S. Department of Commerce, The United States in the World Economy, Chapters 2-4.

 

III. The Breakdown of the Gold Standard: Fluctuating Exchange Rates

League of Nations, Chapters 5,6
Enke and Salera, Chapter 30.

 

IV. The Development of Exchange Controls

Ellis, Chapters 1, 2, 4.
League of Nations, Chapter 7.
Triffin, “National Central Banking and the International Economy,” International Monetary Policies. Board of Governors of the Federal Reserve System.
Rejoinder by Haberler.

 

V. The International Monetary Fund

Articles of agreement of the International Monetary Fund.
Third Annual Report of the International Monetary Fund.
Enke and Salera, Chapter 32.
Harris, The New Economics, Chapters 24, 25, 26, 27.
L. A. Metzler, “Exchange Rates ad the International Monetary Fund,” International Monetary Policies, Board of Governors of the Federal Reserve System, 1947.
R. F. Mikesell, “The Role of the International Monetary Agreements in a World of Planned Economies,” Journal of Political Economy, December, 1947.
Camille Gutt, “Exchange Rates and the International Monetary Fund,” Chapter 10 of Foreign Economic Policy for the United States.

 

VI. The International Bank For Reconstruction and Development

Articles of agreement of the International Bank.
Enke and Salera, Chapter 33, 34.
Third Annual Report of the International Bank.

 

VII. Post-war Trade and the World Shortage of Dollars

Harris, editor, Foreign Economic Policy for the United States, Chapters 15, 16, 17, 18, 19, 24, 25.
United Nations, A Survey of the Economic Situation and Prospects of Europe.
United Nations, Economic Survey of Europe in 1948.

 

Books Referred to in this Bibliography

Enke and Salera, International Economics, New York, 1947.
H. S. Ellis, Exchange Control in Central Europe, Cambridge, Mass., 1941.
League of Nations, International Currency Experience, 1944.
F. A. Southard, Foreign Exchange Practice and Policy, New York, 1941.
International Monetary Fund, Balance-of-Payments Yearbook, Wash., D.C., 1949.
U. S. Department of Commerce, The United States in the World Economy.
U. S. Department of Commerce, International Transactions of the U. S. During the War.
Board of Governors of the Federal Reserve System, International Monetary Policies,
Wash., D.C., 1947.
S. E. Harris, editor, The New Economics, New York, 1947.
S. E. Harris, editor, Foreign Economic Policy for the United States, Cambridge, Mass., 1948.
United Nations, A Survey of the Economic Situation and Prospects of Europe.
United Nations, Economic Survey of Europe in 1948.

 

Source: Duke University. David M. Rubenstein Rare Book & Manuscript Library. Lloyd Appleton Metzler Papers, Box 9, Folder: “Econ. 270 International Econ. (Chicago)”.

 

Source Image: “From family album, taken while Lloyd Metzler was a student at Harvard.”
“Lloyd A. Metzler” by Margiemetz – Own work. Licensed under CC BY-SA 3.0 via Commons.

Categories
Chicago Suggested Reading Syllabus

Chicago. Theory and Measurement of Demand. Henry Schultz, 1934

The undated reading list and bibliography for Henry Schultz’s advanced course “Theory and Measurement of Demand” transcribed below, included in Milton Friedman’s papers at the Hoover Institution Archives, are almost certainly from the Autumn quarter, 1934. This was the academic year that Friedman worked as Henry Schultz’s research assistant at the University of Chicago and audited the course.

______________________________

Friedman audited the Schultz course, Theory and Measurement of Demand

According to the draft of his Civil Service application Milton Friedman worked as personal assistant to Henry Schultz October 1934-August 1935 at a yearly salary of $1600. In his list of courses on a separate page, Friedman writes that he “visited”, i.e. did not take for credit, a course in the Theory of Demand given by Henry Schultz during the academic year 1934-35.

 

Source: Milton Friedman Papers, Hoover Institution Archives, Box 5, Folder 4 (Employment records, Civil Service Commission).

______________________________

Friedman describes his work for Schultz

From a carbon-copy, presumably an attachment to the same Civil Service application in Box 5, Folder 4, Friedman writes:

“I lived in Chicago, Ill. from September, 1934 to August, 1935 while employed by the University of Chicago.

My educational training and experience gained while working with Professor Schultz this past year are most relevant to the position for which I am applying. I have aided Prof. Schultz on the theoretical questions underlying his forthcoming book on “The Theory and Measurement of Demand”, a subject intimately connected with consumption. In this connection I have had to survey the literature on demand and consumption. In addition to the theoretical work I have been in charge of related statistical studies and was largely responsible for the planning and direction of a statistical study of the demand for meats in the United States, on which study three statistical assistants were employed. In the course of the study I wrote several memoranda analyzing and interpreting the data and results. The results of the analysis are being published by Prof. Schultz in…[next page missing].”

Source: Milton Friedman Papers, Hoover Institution Archives, Box 5, Folder 11(Student years).

______________________________

[Course Description] 

  1. The Theory and Measurement of Demand.—A course covering such topics as the pure theory of demand; demand and utility in the theory of exchange; static and dynamic demand functions; different notions of elasticity of demand; various methods of deriving demand functions from family budget data and from time series of consumption and prices; etc. Prerequisite: Economics 301, a reading knowledge of French, and consent of the instructor. C.—2Cs., Autumn, 9:00, SCHULTZ.

 

Source: University of Chicago. Announcements: The College and The Divisons for the Sessions of 1934-35, pp. 286-7.

______________________________

REFERENCES FOR ECONOMICS 405

Theory and Measurement of Demand
by
Henry Schultz
University of Chicago

____

I. General Equilibrium

Bowley, A. L. Mathematical Groundwork of Economics
Divisia, Francois Économique Rationelle
Evans, G. C. Mathematical Introduction to Economics
Fisher, Irving Mathematical Investigations in the Theory of Value and Price,–in Transactions of the Connecticut Academy of Arts and Sciences (9-10) pp. 1-125.
Marshall, Alfred Principles of Economics
Pareto, Vilfredo +Manuel d’Économie Politique (especially Chap. III and Mathematical Appendix, pp. 539-594.)

+Cours d’Économie Politique (especially first 73 pages)

+Économie Mathématique, in Encyclopédie des sciences Mathématique, Tome I, Vol. 4, Fascicule 4, pp. 591-640.

Pietri-Tonelli, Alfonso Traité d’Économie Politique
Walras, Leon +Éléments d’Économie Politique
Zawadzki, Wl. Les Mathématiques Appliquées à l’Économie Politique

 

 

II. Utility Theory

A. Philosophical and Historical Background

Bentham, Jeremy Principles of Morals and Legislation
Edgeworth, F. Y. Mathematical Psychics
Halevy, Elie La Formation du Radicalisme Philosophique (French or English edition)
Jevons, W. Stanley Theory of Political Economy
Mitchell, Wesley C. “Bentham and the Felicific Calculus”, Political Science Quarterly, Vol. XXXIII, No. 2, June, 1918.
Stephen, Leslie The Utilitarians

 

B. Analytical and Statistical

Allen, R. G. D. “The Foundations of a Mathematical Theory of Exchange”, Economica, May, 1932.

+”The Nature of Indifference Curves”, The Review of Economic Studies, Vol. 1, No. 2, Feb., 1934, pp. 110-121.

+”A Comparison between Different Definitions of Complementary and Competitive Goods”, Economtrica, Vol. II, No. 2, April, 1934, pp. 168-176.

Allen, R.G.D., and Hicks, J.R. “A reconsideration of the Theory of Value”, Economica, Part I, Feb., 1934, pp. 52-76. Part II, May, 1934, pp. 196-219.
Evans, G. C. “The Role of Hypothesis in Economic Theory”, Science, Vol. 75, No. 1943, March 25, 1932, pp. 321-324.
Johnson, W.E. “The Pure Theory of Utility Curves”, Economic Journal, Vol. XXIII, No. 92, Dec., 1913, pp. 483-513.
Lange, Oscar “The Determinateness of the Utility Function”, The Review of Economic Studies, Vol. I, No. 3, pp. 218-226.
Schultz, Henry Review of Evans’ Mathematical Introduction in Journal of the American Statistical Association, Vol. XXVI, No. 176, Dec., 1931, pp. 484-91.

+”Interrelations of Demand”, Journal of Political Economy, XLI, 1933, pp. 468-512.

Thurstone, L. L. “The Indifference Function”, The Journal of Social Psychology, Vol. II, No. 2, May, 1931, pp. 139-67.
Zotoff, A. W. “Notes on the Mathematical Theory of Production”, Economic Journal, Vol. XXXIII, 1923, pp. 115-121.

 

C. Applications

Allen, R. G. D. “On the Marginal Utility of Money and Its Applications”, Economica, May, 1933.
Fisher, Irving “A Statistical Method for Measuring ‘Marginal Utility’ and Testing the Justice of a Progressive Income Tax”, in Economic Essays Contributed in Honor of John Bates Clark.
Frisch, Ragnar “Sur un Problème d’Économie Pure”, Norsk Matamatisk Forenings Skriften, 1926, Series 1, No. 16.

New Methods of Measuring Marginal Utility

Schultz, Henry “Frisch on the Measurement of Utility”, Journal of Political Economy, XLI, Feb., 1933, pp. 95-117.

+ Of special importance

 

________________________________

 

[Handwritten: Milton Friedman]

 

REFERENCES FOR ECONOMICS 405
Bibliography on Demand

__

Henry Schultz
University of Chicago

____

Derivation of Demand Curves
I. From Price [and] Quantity Data

A. The Moore Method

Moore, H.L. Economic Cycles: Their Law and Cause. New York, 1914.

Forecasting Yield and Price of Cotton. New York, 1917.

“Empirical Laws of Demand and Supply and the Flexibility of Prices”, PSQ, XXXIV, 1919.

“Elasticity of Demand and Flexibility of Prices”, JASA, XVIII, 1922.

“A Moving Equilibrium of Demand and Supply”, QJE, XXXIX, 1925.

“Partial Elasticity of Demand”, QJE, XL, 1926.

“A Theory of Economic Oscillations”, QJE, XLI, 1926.

Synthetic Economics, New York, 1929.

Schultz, Henry Statistical Laws of Demand and Supply, with Special Application to Sugar. Chicago, 1928.

Meaning of Statistical Demand Curves. English original of Der Sinn der Statistischen Nachfragekurven, Veroeffentlichungen der Frankfurter Gesellschaft fuer Konjunkturforschung, Heft 10. Bonn, 1930.

“The Shifting Demand for Selected Agricultural Commodities, 1875-1929”, Journal of Farm Economics, XIV, 1932, 201-27.

“A Comparison of Elasticities of Demand Obtained by Different Methods”, Econometrica, I, 1933, 274-308.

“Interrelations of Demand”, JPE, XLI, 1933, 468-512.

Lenoir, Marcel Études sur la Formation et le Mouvement des Prix. Paris, 1913.
Ezekiel, Mordecai “Statistical Analysis of the Laws of Price”, QJE, 1928.

“A Statistical Examination of Lamb Prices”, JPE, April, 1927.

 

B. The Leontief Method

Leontief, Wassily “Ein Versuch zur Statistischen Analyse von Angebot und Nachfrage”, Weltwirtschaftliches Archiv, Band XXX, Heft 1, 1929, pp. 1-53.
Schultz, Henry Meaning of Statistical Demand Curves, Appendix II, 99-118.
Frisch, Ragnar “Pitfalls in the Statistical Construction of Demand and Supply Curves”, Veroeffentlichungen der Frankfurter Gesellschaft fuer Konjunkturforschung, Neue Folge, Heft 5, Leipzig, 1933.
Leontief, Wassily “Pitfalls in the Construction of Demand and Supply Curves: A Reply”, QJE, XLVIII, 1934, 352-63.
Frisch, Ragnar “More Pitfalls in Demand and Supply Analysis: A Reply”, QJE, XLVIII, 1934, 749-55.
Leontief, Wassily “More Pitfalls in Demand and Supply Analysis: A Final Word”, QJE, XLVIII, 1934, 755-59.
Marschak, J. “More Pitfalls in Demand and Supply Analysis: Some Comments”, QJE, XLVIII, 1934, 759-67.

 

C. The (second) Pigou Method

Pigou, A.C. “The Statistical Derivation of Demand Curves”, EJ, XL, 1930, 344-400; reprinted in A.C. Pigou and D.H. Robertson, Economic Essays and Addresses. London, 1931.
Ferger, Wirth F. “Pigou’s Method of Deriving Demand Curves”, EJ, XLII, 1932, 17-26.
Cassels, J.M. “A Critical Consideration of Professor Pigou’s Method for Deriving Demand Curves”, EJ, XLIII, 1933, 574-87.
Allen, R.G.D. “A Critical Examination of Professor Pigou’s Method of Deriving Demand Elasticity”, Econometrica, II, July, 1934, 249-58.

 

D. Miscellaneous

Working, Holbrook “The Statistical Determination of Demand Curves”, QJE, XXXIX, 1925.
Working, E.J. “What do Statistical Demand Curves Show?” QJE, XLI, 1927, 212-35.
Gilboy, Elizabeth W. “Demand Curves in Theory and Practice”, QJE, XLV, 1930.

“The Leontief and Schultz Methods of Deriving ‘Demand’ Curves”, QJE, XLV, 1931, 218-61.
“Studies in Demand: Milk and Butter”, QJE, XLVII, 1932, 671-97.

Ferger, Wirth F. “The Static and Dynamic in Statistical Demand Curves”, QJE, XLVII, 1932, 36-62.

 

II. From Family Budget Data

A. The (first) Pigou Method

Pigou, A.C. “A Method of Determining Numerical Values of Elasticity of Demand”, EJ, XX, 1910, 636-40.

 

B. The Frisch Method

Frisch, Ragnar “Sur un Problème d’Économie Pure”, Norsk Matamatisk Forenings Skriften, 1926, Series 1, No. 16.

New Methods of Measuring Marginal Utility

Schultz, Henry “Frisch on the Measurement of Utility”, JPE, XLI, 1933, 95-117.

 

C. The Marschak Method

Marschak, Jakob Elastizitaet der Nachfrage, Beitraege zur Oekonomischen Theorie, 2, Tuebingen, 1931.
Frisch, Ragnar “Discussion of Marschak’s Method”, Revue d’Économie Politique, XLVI, 1932, 14-28.

 

D. The Roy Method

Roy, René La demande dans ses rapports avec la Répartition des Revenue”, Metron, VIII, 1930, 101-53.

“Les Lois de la Demande”, Revue d’Économie Politique, 1931, 1190-1218.

 

E. Miscellaneous

Gilboy, Elizabeth W. “Demand Curves by Personal Estimate”, QJE, 1932.
Waugh, Albert E. “Elasticity of Demand from Budget Studies”, QJE, 1932.
Bean, L. H. “The Farmer’s Response to Price”, Journal of Farm Economics, 1929.

“Measuring the Effect of Supplies on Prices of Farm Products”, Journal of Farm Economics, April, 1933.

 

N.B.

The references, with but one exception, are confined to works in English or French. For additional references see Schultz, Henry: “A Comparison…”, Econometrica, I, 1933, 274-308.

The abbreviations refer to the following periodicals:

EJ Economic Journal
JASA Journal of the American Statistical Association
JPE Journal of Political Economy
PSQ Political Science Quarterly
QJE Quarterly Journal of Economics

 

Source: The above transcription is based on the copy  in Milton Friedman Papers, Hoover Institution Archives, Box 5, Folder 12 (Student years). Another copy can be found in the George Stigler Papers, University of Chicago Archives, Addenda, Box 33, Folder “1935 University of Chicago Class Notes”. The copy in the Stigler notes is almost identical to the Friedman copy (with some hand-corrected titles and additions for apparent unintended omissions). Stigler’s notes to the course along with class hand-outs are found in the same folder.

Image Source: The only photo of Henry Schultz that I have ever come across is the one found to accompany Harold Hotelling’s paper and Paul Douglas’ paper in Econometrica (1939) honoring Schultz who died November 26, 1938 in a tragic automobile accident that also took the lives of his wife and two daughters.

Categories
Columbia Fields Harvard Suggested Reading

Harvard. Reading List in Public Finance. Bullock and Burbank, 1934.

In an earlier posting I posted the public finance reading list for the Ph.D. field exam in public finance prepared some time during the fall semester 1933-34 which was in a Harvard economics department folder along with reading lists for other fields (railroads, corporations, and banking). In this posting we find the identical reading list along with a cover letter from Professor Charles Bullock of Harvard to Prof. Haig, the public finance expert, at Columbia asking for comments. I have added Haig’s suggestions for deletions and additions in blue-boldface.

___________________________________

[Bullock to Haig, 15 January 1934]

HARVARD UNIVERSITY
DEPARTMENT OF ECONOMICS

CAMBRIDGE, MASSACHUSETTS
January 15, 1934

Prof. R. M. Haig
Columbia University
New York City

My dear Haig:

Burbank and I have been conferring recently about the reading that ought to be done by our graduate students who offer public finance as their special field for the doctorate. After considering books and the results students apparently get from reading them, we have got up the enclosed list. If you would be interested in reading it and commented commenting upon it, I should be greatly indebted to you.

In particular I would be glad to have you note any books which you have found useful for your students but which we have omitted.

Some of the books we list, like Miss Comstock’s “Taxation in the Modern State”, are pretty light-weight affairs; but they have some information in them which students can’t readily get elsewhere; also, of course, some misinformation.

If there are any books listed here that you would strike out, I should be very glad if you would indicate deletions.

Another question is that of the division of the books into the three groups. The first group mostly is intended to give the general approach, though the last thing in it, the Colwyn Report, is put there because Burbank has found it extremely useful with his students. Mine have not found it so useful; and I would have preferred to put that title in Group II.

I would be glad to have your comments also on the amount of reading. I am inclined to think the requirement of all the books in Group I, six or eight books in Group II, and three or four books in Group III is excessive; but the first two titles in Group I are really read in class. Do you think the total amount of reading excessive?

For your convenience I am sending along two copies, so that you can jot down in lead pencil on one of them additions, deletions, criticisms, and any other comment, and then mail the damned thing back to me without even going to the trouble of dictating a letter. In the present state of the literature in public finance, I have found it very difficult to know what to do; and so has Burbank. Perhaps you may be sufficiently in the same frame of mind so that you will not find this polite request I make too much of an imposition!

Yours sincerely,

[signed]

Charles J. Bullock

 

CJB/AMB

___________________________________

Readings in Public Finance for General and Special Examinations

Students preparing for the special examination in public finance should read all the references listed under I. In II the student should read a substantial portion of six or eight books, selecting topics which he considers of most interest and value to him. In III the student should read a substantial portion of three or four of the books listed, again following his own requirements or interests.

 

I. Required Reading

A. Smith Wealth of Nations, Book 5
J. S. Mill Principles of Political Economy, Book 5, ch. 1-8
C. F. Bastable Public Finance (3rd edition). Read pages: 1-149; 153-257; 261-421; 425-442; 443-464; 465-468; 469-494; 504-573; 611-711.
H. L. Lutz Public Finance
C. J. Bullock Selected Readings in Public Finance (3rd edition). Read pages: 1-51; 76-147; 156-268; 278-379; 445-490; 533-607; 755-902; 921-982
A. Wagner Finanzwissenschaft, Vol. II. Read all the coarse print; use judgment on the fine print.
P. Leroy-Beaulieu Traité des Finances, Vol. I (8th edition, 1912). Read pages: 1-10; 28-92; 92-133; 134-143; 172-249; 367-387; 394-437; 439-482; 483-517; 539-626; 626-703
[Haig note: Substitute Allix]
D. R. Dewey Financial History of the United States
The Colwyn Report Great Britain: Report of the Committee on National Debt and Taxation, 1927. Read pages: 73-244. (Cmd. 2800; Econ. 5389.27)

[Haig note: Add.—H. Dalton—Principles of Public Finance]

 

 

II. Reading Recommended

Mills and Starr Readings in Public Finance and Taxation. Read Pages: 41-150; 168-195; 205-264; 369-453; 482-607; 763-808
A. C. Pigou A Study in Public Finance
B. Moll Lehrbuch der Finanzwissenschaft (1930)
[Haig note: I was surprised by the low rating given Moll’s Lehrbuch by his German colleagues]
E. Allix

 

Traité élementaire de Science des Finances (6th edition, 1931). Read pages: 1-81; 151-204; 216-256; 285-312; 341-382; 437-573; 870-902; 910-958; 1011-1050;1091-1134.
L. Suret Théorie de l’Impôt progressif
[Haig note: Subsitute Seligman]
J. Stamp Fundamental Principles of Taxation
T. G. Shearman Natural Taxation
[Haig note: “?” (a question mark)]
H. L. Lutz State Tax Commissions
S. Leland The Classified Property Tax
A. L. Harding Double Taxation of Property and Income
E. Cannan History of Local Rates
A. F. Macdonald Federal Aid
J. W. Grice National and Local Finance
A. E. Buck Municipal Finance
The May Report Great Britain: Report of the Committee on National Expenditure, 1931 (Cmd. 3290; Econ. 5389.31)
National Tax Association Proceedings, 1933, Report of Committee on Model System of State and Local Taxation

 

 

III. Other Reading

G. F. Shirras Science of Public Finance
[Haig note: Elim. in view of incl. of Bastable]
E. R. A. Seligman Progressive Taxation
——————— Essays in Taxation
——————— Income Tax (chapters on Great Britain, Germany, France, U.S.A.)
——————— Shifting and Incidence of Taxation
H. A. Silverman Taxation, Its Incidence and Effects
A. Comstock Taxation in the Modern State
J. P. Jensen Property Taxation in the United States
W. G. Schultz Taxation of Inheritances
R. G. Blakey Taxation in Minnesota
[Haig note: Eliminate]
R. M. Haig The Taxation of Excess Profits in Great Britain
National Industrial Conference Board General Sales or Turnover Taxation
National Industrial Conference Board Sales Tax
A. G. Buehler General Sales Taxes
[Haig note: Substitute C. Shoup: Sales Tax in France]
R. Magill, editor Lectures on Taxation
R. Stourm The Budget
W. F. Willoughby The National Budget System
H. S. Adams
[Haig note: “C” (i.e. not S.)]
Public Debts
M. L. Walker Municipal Expenditure
Britain’s Industrial Future, pp. 426-447.
H.U. Library, Econ 6069.28.5
Joseph Sykes British Public Expenditures, 1921-1931
Report of New York Commission for Revision of the Tax Laws, 1932, Part III.

[Haig note:  Add.

W. F. Willoughby. The Financial Condition and Operations of the National Government.
H. C. Adams, Science of Finance.
H. Higgs. The Financial System of the UK.
Taxation of Foreign and National Enterprises. Fiscal Commission, League of Nations.]

 

Source:   Columbia University Libraries, Manuscript Collections. R. M. Haig Collection, Box 15, “Lecture Notes”; Folder, “Reading—Suggestions—Econ.101”.

Image Source:  Harvard Album 1932.

Categories
Bibliography Suggested Reading Syllabus

Marxism. Recommended sequence of readings. Dannenberg, 1918

While the outline of this posting was explicitly intended for independent self-study, it nonetheless provides a sequence of readings (i.e. a syllabus) for the study of Marxism recommended by someone who sees himself squarely in the orthodox Marxian tradition in 1918.  It is interesting to note that the outline is essentially cast as a preparation to read Capital seen as “an important and tedious[!] task”. Personally, I would be surprised if any university syllabus had actually been based on this outline, but one does get the sense that Karl Dannenberg thought long and hard about his choices and the optimal ordering of the readings which is what a course syllabus should be all about, so it could be a useful benchmark for comparing the actual course syllabi that we find. Besides correcting a few minor misspellings, I have added boldface to highlight the recommended readings.

For a briefing on the author and the periodical in which the outline first appeared, see the introduction to the reprint edition of seven issues of the American socialist periodical, The Radical Review by Joseph R. Conlin (1968). 

________________________________________

[p. 85]

AN OUTLINE FOR THE STUDY OF MARXISM

[Karl Dannenberg,  originally published in The Radical Review, April 1918.  Pagination taken from the separate publication of his articles.]

AS a fitting supplement to the lectures published under this title in the first three numbers of this magazine, I will now endeavor to furnish the reader with a compilation of works which I deem absolutely essential for a serious and comprehensive study of Socialism. In the humble opinion of the writer, such a study must inevitably lead to a scientific understanding of Marxism — an understanding quite imperative to an intelligent and sound appreciation of Capitalism.

There is probably no social theory outside of the various religious conceptions, and no book except the Bible that can boast of more adherents and advocates the world over than Socialism and “Capital.” Socialism is to-day a factor in the social and political life of every nation, and the theoretical propositions and basic principles of Marxism are at this turbulent period the revolutionary force and intellectual standard around which the workers and all truly disinterested students of Sociology and Political Economy rally in their struggle against the debasing influences of the mercenary Social Sciences. Marxism can, therefore, and without indulging in exaggeration, lay claim to the legacy of Classical Political Economy, and consider itself the only legitimate heir to the scientific values of this science. And acting in accord with this dictate of social development, Marx has raised upon the solid foundation laid by a Petty, Smith, Ricardo and Mill a structure truly massive, colossal and inspiring in its mighty grandeur, and overpoweringly convincing, yes unassailable and irrefutable in the scientific profundity of its construction.

As has been amply elucidated and sufficiently explained, the two propositions upon which the theoretical system of Marx rests and whose proper appreciation is absolutely necessary for a [p. 86] thorough and rational understanding of Marxism are the Materialist Conception of History and the Socialist critique and analysis of capitalist production, or Capitalism. I have dwelt at length upon these two fundamental phases of Socialist letters in my lectures, and, therefore, do not consider it essential to enter upon a discussion of them here, or to even emphasize the importance of their proper study and assimilation.

Every scientist will concede that the basis for a competent understanding of or mastery over any branch of learning rests solely in systematic study and the well organized classification and application of the knowledge or subject matter absorbed. Socialism is no exception to the rule. For a thorough knowledge of the elements of Socialist Philosophy and Economics a well planned and systematically executed course of critical reading and diligent study is absolutely essential. Such a course of reading and study is, however, taking the present conditions in the field of Socialist literature as a criterion, not so easily compiled; especially, if the prospective student attempts to perform this task himself, i. e., without procuring the advice or counsel of a competent authority. In no field of intellectual endeavor or pursuit, in no science are there more snares, snags and traps awaiting the unwary and trusting student than in the field of theoretical Socialism. And when we view the innumerable collections of irresponsible, defective, yes in many cases fundamentally erroneous works which are daily offered to the public as “recognized textbooks” on Socialism, then we can easily account for this ungratifying situation and also readily explain the Babylonian confusion and criminal inconsistency at times rampant in the Socialist movement. Furthermore, when perceiving that such “textbooks,” which in the most cases are at best only unquestionable testimonials of their author’s ignorance of Socialism, are circulated by responsible agencies in the Socialist Party, then the unbiased Socialist, to whom clarity in Socialist letters is more than a cherished aspiration, must confess [p. 87] that it certainly is not such a simple task after all for the uninitiated seeker to arrive at a clear and scientific conception of Marxism.

I believe I am not exaggerating when I state that no movement has placed its founder upon a higher pedestal, or paid a greater tribute to its master than the Socialist movement. If anyone desires to view an example of deep gratitude and noble affection let him study the whole-hearted idolization of Karl Marx indulged in by the proletariat the world over. There is no civilized country upon the globe in which there are not hundreds of thousands of workingmen who proclaim themselves adherents to Marx’s teachings. The picture of this great thinker adorns the parlor of every Socialist home, and can be found in every Socialist or trades-union hall. His masterpiece and textbook of scientific Socialism, “Capital,” enjoys the undivided admiration of all Socialists. Be they orthodox revolutionists or plastic opportunists matters not, in the laudation of Marx and his works they are one and claim to be — Marxists. Another peculiarity, which has its origin in the object to exploit the international reputation of Marx for political purposes, is the persistency of Socialist organizations or factions with the most conflicting principles to proclaim their position to be in conformity with Marxian precepts, or to be the only “true” Marxian position. Consequently, since the death of Marx, the most farcical and disgusting political campaigns and pillaging expeditions have been labelled or masqueraded in the guise of Marxism, and are even at this late day usurping the name of the great master for the purpose of political capital. These unsavory tactics and ungratifying conditions are made possible and tolerated in the Socialist movement, because the reverence entertained for and unbounded confidence placed in Marx are not predicated upon a sound knowledge of or an even superficial familiarity with the actual works of this celebrated economist. There is probably no book in the scientific literature of the world that enjoys greater popularity, is more appealed to, [p. 88] oftener recommended and less read than “Capital.” In consequence, it will be difficult to find another science, enjoying the same popularity as Marxism, in whose name are propagated so many conflicting and erroneous views. As already insinuated, the cause for these ungratifying conditions can be traced to the colossal ignorance prevalent amongst so-called “Marxian” Socialists on matters Marxian. Therefore, the only force able to curb and eventually obliterate “these evil powers of darkness” is familiarity with the works of their idol, and an acquaintance with the lucid teachings of their much heralded leader, through a systematic study of Socialist classics. The organization of classes or circles for the study of Socialist classics should, consequently, be seriously taken in hand by all Socialists who have the healthy development of Marxism at heart. A vigorous, revolutionary political and industrial movement of Socialism can only flow from a sound theoretical conception of Marxism; no conscious, effective and revolutionary policy can be expected from the vast majority of the political and economic forces now operating under the banner of Socialism.

* * *

When a student enters upon the study of Socialism, the first truism he should remember is that Socialism as a science does not occupy itself nearly so extensively with the contemplation and elucidation of future society, as with the examination and economic analysis of the present one. Scientific Socialism is, therefore, not as it is generally and mistakenly assumed, a theoretical system dealing solely with the multifarious phases of the Cooperative Commonwealth, but one which constitutes primarily an inquiry into the origin, foundation, laws and tendencies noticeable in the development of capitalist production. In consequence, a knowledge of Socialism does not consist of an individual’s competence to memorize a definition formulating the economic and social basis of Socialist production, i. e., setting forth the economic groundwork of the Industrial Republic and the [p. 89] social consequences resulting therefrom, but rather of his ability to file a brief for Socialism, by convincingly pointing out the necessity for and inevitability of the Cooperative Commonwealth germinating in the womb of capitalist society. A knowledge of Socialism demands, therefore, in the first place not so much a study of future society as it does a thorough investigation of present social and economic life. In consequence, Socialism represents more an investigation of capitalist production and an exposition of the social and economic laws underlying the same than an abstract theory or speculation of Industrial Democracy. However, it must be also emphasized that in order to have a normal, that is scientifically sound conception of future society, and an understanding of the forces and social elements making for it, a deep and scientific appreciation of Capitalism is absolutely indispensable.

As an excellent introduction into the so-called mysteries of Economics and the peculiarities of the Socialist nomenclature, also as a textbook of Socialism unparalleled for lucidness, pithiness and accuracy I recommend a close study of “Das Erfurter Programm,” by Karl Kautsky, published in English complete under the name of “The Class Struggle” and translated by Wm. E. Bohn, or chapters of which are issued in pamphlet form under the titles of “The Working Class,” “The Capitalist Class,” “The Class Struggle” and “The Socialist Republic,” translated and adapted to American conditions by Daniel De Leon. There is probably no book in the by no means limited assortment of Socialist literature that equals this work in its scrupulous accuracy of exposition; an accuracy made doubly effective because it is coupled with a remarkable and rare simplicity in the presentation of Marxian fundamentals. Here we have a compendium of Socialism, written by a Marxian scholar of international repute, classical in its treatment of the subject matter, and truly deserving the widest possible circulation in the Socialist and labor movement. “Das Erfurter Programm,” as the German [p. 90] title of “The Class Struggle” suggests, was originally written to furnish a theoretical explanation and scientific elucidation of the programme of the German Social Democracy, adopted at Erfurt, 1891, to the workers. The very purpose and nature of such a work makes out of it a rich source of information for particularly the serious student ; because here the penetrating rays of Marxism are thrown upon the programmatic demands and principles of a political party of Socialism, and employed or utilized to verify the same before the bar of science. “Das Erfurter Programm” (”The Class Struggle”) succeeds admirably in presenting and explaining Socialist fundamentals to the novice or uninitiated. However, in doing this, it claims to be, as already stated, substantiating the demands and theoretical propositions laid down in the Erfurt programme of the Social Democratic Party. In the opinion of the writer, the object of this splendid work has been only partially fulfilled, at least the object of its publishers, because as an advocate of sound, scientific fundamentals it has no rival in Socialist literature, in consequence, neither can it find its equal as a repudiator of palliatives and so-called immediate demands, so popular in the German Social Democracy and with which the Erfurt programme is overloaded.

Possessing a working knowledge of the genesis and character of capitalist production, also of the economic and social status of the various classes in present society, the student should now seek to familiarize himself more thoroughly with the Socialist conception of social evolution, i. e., with the philosophical foundation of scientific Socialism. Familiarity with the elements and propositions of Historical Materialism will also lead to a better understanding and more competent appreciation of social phenomena, and simultaneously equips the reader with the knowledge that will henceforth enable him to differentiate intelligently between Utopian and Scientific Socialism. An intensive study of Frederick Engels’ masterpiece “Development of Socialism from Utopia to a Science” is now recommended. In conjunction with these philo-[p. 91]sophical studies, the student ought to read the “Preliminary Remarks” to “Principles of Political Economy,” by John Stuart Mill. In this introduction the great English Economist gives in a lucid and brilliant form a short resume of the principal stages in the evolution of the human race. If this work is not procurable, then the student can commence immediately with the “Evolution of Property,” by Paul Lafargue. However, a diligent perusal of Mill’s “Preliminary Remarks” can not be too strongly recommended.

In order to develop and broaden the student’s knowledge of Political Economy, the study of the following works is now opportune and must be carried out in the order they are listed: “Wage, Labor and Capital,” by Karl Marx; “High Cost of Living,” by Arnold Petersen; “Value, Price and Profit,” by Karl Marx.

Knowing the economic and social forces underlying social development, also possessing a scientific conception of social phenomena and historical manifestations; furthermore, being somewhat familiar with the general phases of social evolution, it is now desirable and quite essential that the student begin a somewhat systematic study in Ethnology, Sociology and History. As an introduction to this interesting course of reading, the student should slowly and patiently explore that treasure island of facts, that monumental work in Ethnology, “Ancient Society,” by Lewis H. Morgan. A thorough and diligent study of this classic is absolutely imperative and will greatly assist in the proper understanding of the subsequent periods in historical development. A study of the following works is now recommended : “The Ancient Lowly,” by C. Osborne Ward; “Two Pages from Roman History,” by Daniel De Leon; “Crises in European History,” by Gustav Bang; “An Introduction to the Study of the Middle Ages” and “Medieval Europe,” by Ephraim Emerton; “The Middle Ages,” by Henry Hallam; “History of European Morals,” by William Edward Hartpole Lecky; “General History [p. 92] of Civilization in Europe,” by Francois Pierre Guillaume Guizot; “History of Civilization in England,” by Henry Thomas Buckle; and as supplementary reading “The Mysteries of the People, or History of a Proletarian Family Across the Ages,” by Eugene Sue, translated from the original French by Daniel De Leon. The last work by Sue in this series consists of 21 volumes, and is really a universal history in itself, depicting the class struggle as it has raged through the ages and under the different social systems. For a study of social development in America the works listed below will be found suitable ; these works are written by scholars well ground in the theories of Historical Materialism, and, consequently lay bare the actual driving forces responsible for and behind social change in this country: “American Industrial Evolution from Frontier to Factory,” by Justus Ebert; “Social Forces in American History,” by A. M. Simons; and “The Workers in American History,” by James Oneal.

It is now also necessary that the student acquaint himself with the inception and growth of the Socialist movement, a growth, however, that has not always kept abreast with the development of theoretical Socialism. The following classics of Socialist literature and historic documents should now be critically read: “The Communist Manifesto,” by Karl Marx and Frederick Engels; “Revolution and Counter-Revolution, or Germany in 1848,” erroneously credited to and published under the name of (Karl Marx, but actually written by Frederick Engels; “The Class Struggle in France 1848-1850,” by Karl Marx; “The Eighteenth Brumaire of Louis Napoleon,” by Karl Marx; and “The Civil War in France” (“The Paris Commune”), by Karl Marx. In conjunction with the foregoing the following works, dealing in the main with American conditions and problems, may be profitably read: “History of Socialism in the United States,” by Morris Hillquit; “Proceedings of the Ninth Convention of the S. L. P.”; “Proceedings of the Tenth National Convention of the S. L. P., 1900”; “New Jersey Socialist Unity Conference”; [p. 93] “Flashlights of the Amsterdam Congress,” by Daniel De Leon; “Launching of the I. W. W.,” by Paul F. Brissenden; and “Proceedings of the First Convention of the Industrial Workers of the World, Chicago, 1905.”

Fully equipped with the various subjects and phases constituting the theoretical system of Marxism, and being also somewhat familiar with the various stages and periods of social development, the student is now amply prepared to take up the study of works usually considered too ponderous or “academic” for the unprepared worker. These works form the basis of the theoretical structure of Marxism, and their study is, therefore, synonymous with imbibing the Socialist philosophy at its “original sources.” The first of this class of works to be assiduously studied is Frederick Engels’ “Landmarks of Scientific Socialism” (Anti-Duehring). In conjunction with this invaluable gem of Socialist literature “Feuerbach, Roots of Socialist Philosophy,” by the same author; and “A Critique to Political Economy” and “Poverty of Philosophy,” by Karl Marx should be read; special attention being given to the Preface of the “Critique.” In this connection “The Theoretical System of Karl Marx,” by Louis B. Boudin, will also serve as very effective and profitable supplementary reading.

The next and final work to be taken up in this course of reading will be the study of “Capital,” the so-called foundation or basic work of Socialist Political Economy. Before, however, commencing this important and tedious task, the student should do some additional preliminary reading and rehearse his studies in Economics. He should, for example, reread “Wage, Labor and Capital,” “Value, Price and Profit,” etc., and particularly seek to master the contents of Marx’s “A Critique to Political Economy,” already referred to above. Furthermore, a perusal of works of a critical and more or less controversial nature, occupying themselves with the various phases of Marxism as formulated and substantiated in “Capital,” will be of great assistance [p. 94] to a proper understanding of this masterpiece. For this purpose, the following brochures are recommended as collateral reading: “Vulgar Economy,” by Daniel De Leon; “Marx on Mallock, or Facts versus Fiction,” by the same author; “Was Marx Wrong?”, by I. M. Rubinow; and “Karl Marx and Boehm-Bawerk, Vulgar Economy Illustrated,” by W. H. Emmett.

The study of “Capital” can now be taken up, and in this connection the following suggestions should be observed. The social and historical significance of this work has been, I believe, sufficiently emphasized and dealt with in the lectures proper and, therefore, requires no further elucidation. What is now of prime importance to the prospective reader or student of “Capital” is a plan or course of procedure netting the best possible results with the smallest expenditure of energies. It can not be denied, all popular assertions notwithstanding, that “Capital” is to the average workingman, unaccustomed to scientific works, quite a tedious and ponderous volume; furthermore, that an indiscriminate and unsystematic reading of this book is not very conducive to either the spirit and future efforts of the reader, or to an intelligent appreciation of the work itself. As underscored in this article before, in the humble opinion of the writer, an EXHAUSTIVE course of preliminary reading and study is absolutely essential, yes, a prerequisite, for a proper understanding of “Capital.” Hence if classes or individuals, not equipped with the aforementioned knowledge so necessary for a proper perception or understanding, i. e., unprepared and untrained to assimilate or digest the intellectual food offered in this monumental work, give up their studies in despair, then the reason should not be ascribed to the “ponderous form of presentation in ‘Capital’,” but to the insufficient preparation and inability of these students to understand the nature and mode of Marx’s investigations and deductions. However, those who have diligently followed the lecturer through his discourses and studied the books recommended in this Outline need have no fears on this [p. 95] score, and will experience no difficulties in understanding “Capital.”

To the student desirous of conserving energy, also to the teachers of “Capital” I would suggest and warmly recommend that they begin the study of the book not in the customary way, but commence with Part VIII, The So-Called Primitive Accumulation. This section deals with and graphically depicts the social and economic origin of capital and capitalist production, and shatters once and for all time that well-known myth of capital being the result or fruit of abstinence. In a powerful and highly fascinating style, Marx unrolls before the eyes of the reader a picture vividly showing the birth, development and culmination of Capitalism. Here we have a history of the capitalistic stage in the endless chain of social development, a history written by the formulator of Historical Materialism, and it is truly a presentation throbbing with the creative vitality only inherent in convincing and irrefutable arguments : arguments taken from and corresponding with the indisputable facts of historic data and events. In this section of the book the secret of primitive accumulation, the expropriation of the peasants and their dispossession from the soil, the bloody and barbarous legislation against the expropriated in the 15th, 16th and 17th Centuries, the genesis of agrarian and industrial capital, and the historical tendencies of capitalist accumulation are exposed and dispassionately analyzed ; including a scientific dissection of our modern theory of colonization — an examination that will prove to be particularly Interesting when read in the light of the present war.

From this part of the book turn to Part III, Chapter X, on The Working Day, and read Section 1, The Limits of the Working Day, Section 2, The Greed for Surplus Labor. — Manufacturer and Boyard, Section 3, Branches of English Industries without Legal Limits to Exploitation, Section 4, Day and Night Work. — The Relay System, Section 5, The Struggle for a Normal Working Day, — Compulsory Laws for the Extension of the Working [p. 96] Day from the Middle of the 14th to v the End of the 17th Century, Section 6, The Struggle for the Normal Working Day — Compulsory Limitation by Law of the Working Time.— The English Factory Acts, 1833 to 1864, Section 7, The Struggle for a Normal Working Day.— Reaction of the English Factory Acts on Other Countries. As the sub-headings sufficiently indicate, this chapter deals solely with the historical growth of and tendencies developed by capitalist exploitation, and thus furnishes an indictment of fact fearlessly laying bare the revolting, barbarous and anti-social character of the capitalist system of production.

In order to refresh the student’s memory along the lines of the Materialist Conception of History, and for the purpose of familiarizing him with a brilliant piece of applied Historical Materialism, he should turn to Part IV, and assiduously peruse Chapter XV, dealing with Machinery and Modern Industry. In this chapter the following interesting problems are taken up: The Development of Machinery, The Value transferred by Machinery to the Product, The Proximate Effects of Machinery on the Workman (Appropriation of Supplementary Labor- Power by Capital, The Employment of Women and Children, Prolongation of the Working Day, Intensification of Labor), The Factory, The Strife between Workman and Machinery, The Theory of Compensation as regards Workpeople displaced by Machinery, Repulsion and Attraction of Workpeople by the Factory System, Revolution effected in Manufacture, Handicrafts, and Domestic Industry by Modern Industry, The Factory Acts, etc., and Modern Industry and Agriculture.

Being fully acquainted with the origin, development and tendencies of Capitalism, also quite familiar with the historical role assumed by it in the process of social evolution, the student is now sufficiently equipped to study the economic structure and laws of the capitalist system of production. And to this phase of investigation the remaining and largest part of “Capital” is devoted. Having digested such works as “Value, Price and [p. 97] Profit,” “The Class Struggle,” “A Critique to Political Economy,” etc., the student is well ground and at home in the Socialist and scientific terminology, also in the elements of Marxian Economics, and should, therefore, experience no difficulties in the study of such portions of the work dealing primarily with the investigation and analysis of capitalist production in its pure economic form. The first Chapter of Part I can be defined as the bedrock of Socialist Economics. In the four sections composing this masterly treatise on Commodities, the basic principles and substance of Marxian Economics are laid down. In this chapter such highly important subjects as The two Factors of a Commodity, Use Value and Value (the Substance of Value and the Magnitude of Value), The Twofold Character of the Labor embodied in Commodities, The Form of Value or Exchange Value and The Fetishism of Commodities are subjected to an examination, the findings resulting therefrom elucidated and formulated in concise statements and accurate deductions. A mastery of the first ninety-six pages of “Capital” is, consequently, essential for an intelligent understanding of the remaining chapters in the book; because such a mastery equips the student with a faculty of scientific conception and differentiation quite conducive and necessary to further progress; again, the fact of being at home in the labyrinth of theoretical definitions and economic complexities constituting the groundwork of Marxian Economics is in itself an invaluable asset to the future intellectual labors of the student, and implies, without exaggeration, a knowledge of the quintessential principles of Marxism. Once the student has a correct conception of such familiar terms as Wealth, Value, Use Value, Exchange Value, Commodity, Labor Power, Surplus Value, Capital, etc., the hardest or most irksome part of the task can be considered accomplished. The remaining chapters in the work can now be taken up and studied in their regular order, including a re-reading of those previously studied, and the student should, relatively considered, experience no exceptional difficulties in his work.

[p. 98] To not a few readers this course of study will no doubt seem ponderous and unnecessarily voluminous. It will probably strike many as being too “academic,” “theoretical” and “impractical.” The absence of the current and popular works and tracts on Socialism may also seem inexplicable to some and earn for this course the reputation of being too “scientific” or “orthodox.” To all these antiquated and well known but superficial criticisms and stereotype platitudes the author has only one reply to make, namely: that the above is to be a course in Marxian Socialism, aiming solely to equip the students with a working knowledge of the fundamentals and basic elements of the Socialist philosophy. It is not to be a course in the various “adaptations” and “practical” revisions or abortions of Marxism, popularly taught to a naive and guileless public as “scientific” Socialism by a set of unscrupulous political fakirs. All the works listed and recommended in this course are recognized classics of Socialism, and can be considered as standing proof for the absolute superfluousness of the countless collection of books and pamphlets published on this subject, all claiming to be “popular expositions” of Socialism and “filling a long felt want.” Most of these works contain as a rule nothing else but the intellectual drivel of a coterie of, in many cases, well meaning but ignorant pseudo intellectuals, and in other instances may be classified as the output of a set of unprincipled mercenaries, who see in the labor and Socialist movement a lucrative field for the realization of their personal ambitions. Therefore, the author sincerely trusts that the perusal and diligent study of the works listed in this course will assist to create a sound conception of Marxism and a demand for scientific SOCIALIST literature in the Socialist movement.

 

Source: Karl Dannenberg. Karl Marx, The Man and His Work, and The Constructive Elements of Socialism. Three Lectures and Two Essays. New York: The Radical Review Publishing Association, 1918, pp. 85-99.

 

 

Categories
Economists Suggested Reading Yale

Yale. Suggested readings in social sciences from Arthur T. Hadley, 1901

President of Yale and former Professor of Political Economy, Arthur T. Hadley provides guidance to reading in the social sciences in the literature survey of this posting. It was published as one of six papers in a volume “based upon lectures arranged by the American Society for the Extension of University Teaching, and delivered in Philadelphia in the winter of 1898-99. The impulse to read good books that has grown out of the work of the Society in Philadelphia seemed to demand the suggestions that it was the purpose of these lectures to offer to those who desire to read wisely.”

Economics is discussed between pages 155 and 162 in the text following the book references, but visitors are encouraged to read the entire essay to appreciate the place of economics in Hadley’s scheme of the social sciences.

________________________

SOCIOLOGY, ECONOMICS, AND POLITICS
BY ARTHUR T. HADLEY

REFERENCES

“History of the Science of Politics,” by Sir Frederick Pollock, London, 1890.
[First edition 1890New and Revised Edition 1911; Reprint 1930.]

“Commentaries on the Laws of England,” by Blackstone, London, 1765-69.
[John Adams’ copies:  Book IBook II;  Book IIIBook IV]

“Fragment on Government,” by Jeremy Bentham, London, 1776.

“Ancient Law,” by Sir Henry Sumner Maine, London, 1861.

“Wealth of Nations,” by Adam Smith, 1776. Edition with notes by Thorold Rogers, Oxford, 1880. Abridgment by Ashley, London, 1895.  [Vol I.; Vol II.]

“Principles of Political Economy, with some of their Applications to Social Philosophy,” by John Stuart Mill, London, 1848.
[1871: Seventh edition:   Vol. IVol. II.]

“Contemporary Socialism,” by John Rae. Second edition, London, 1891.
[1884: First edition; 1891: Second edition;  1901: Third edition]

“Burke,” by John Morley, London, 1888.

“Social Evolution,” by Benjamin Kidd, London, 1894.

“Physics and Politics,” by Walter Bagehot, London and New York, 1872. [1873: First Edition; 1881: Sixth Edition]

 

[p. 139]

SOCIOLOGY, ECONOMICS, AND POLITICS

It is the work of the biographer or the historian to gather the events which group themselves about some man or body of men, and trace the subtle sequences of causation by which they are connected. The task of the student of political theory, whether he call himself economist, jurist, or sociologist, is a more ambitious and a more perilous one. His explanations of political events must be general instead of specific. It is not enough for him to correlate the occurrences of a particular life or a particular period. He must frame laws which will enable his followers to correlate the events of any life or any period with which they may have to deal, and to sum up in a single generalization the lesson of many such lives and periods.

This is the kind of result at which the sociologist must aim, if he has the right to call himself a sociologist at all. His manner of [140] reaching it will depend upon his individual character. It may be in flashes of genius like that of Burke. It may be by the strict observance of logical processes like those of John Stuart Mill. It may be — and this is the most common method of all — by a painstaking study of history like that of Aristotle or Adam Smith. Such a study of history the sociologist is at some stage of his progress practically compelled to make. The most brilliant genius must verify his theories by comparing them with the facts. The most astute logician must test the correctness of his processes by applying his conclusions to practical life. In default of such study we have not a work of science but a work of the imagination. This is the character of books like Plato’s “Republic,” like More’s “Utopia,” like Bellamy’s “Equality.” It is to a less degree the character of books like Rousseau’s “Contrat Social” or George’s “Progress and Poverty.” Each of these is a work of genius; but in Plato or Bellamy there is no historical verification at all, and in Rousseau or George there is not enough of it. A work of this kind is sure to be unscientific; and what is worse, it is [141] almost equally sure to be pernicious in its practical influence.

We are sometimes told that these imaginative works of sociology bear the same relation to politics that the historical novel does to history. This may be true if we look at them solely from the standpoint of literary art. But if we judge from their moral effect upon the reader the parallel fails. Reader and author both know that the historical novel is not true. It does not pretend to be true. No one is in danger of mistaking “Quentin Durward”or “Henry Esmond” for actual histories of the time with which they deal. With the writings of political theorists it is far otherwise. The line between the picture of an actual state and the picture of a possible state is not a very clear one. The reader of Rousseau or George hardly knows when he passes from a description of real evils and abuses to a description of imaginary remedies. The greater the ability with which such a work is written the greater is the danger of confusion. The author as well as the reader is excited by the exercise of imaginative power. Bellamy is said to have written “Looking Backward” as a work of fiction [142] pure and simple; but when his readers began to regard him in the light of a prophet, there was an irresistible temptation for the author to regard himself in the same way.

If a man can write literature at all, the construction of a work of political imagination gives him a fatally easy chance to act as a leader of men’s thoughts, Plato’s “Republic” was a far easier work to construct than Aristotle’s “Politics.” The one required only concentrated thought, the other involved in addition a painstaking use of material. There is the same advantage in facility of construction in the works of Rousseau as compared with those of Turgot. The easily written work is also the one which enjoys more readers and which has more influence, at least during the writer’s lifetime. George’s “Progress and Poverty” was not based on an investigation into the history of land tenure. He was therefore able in good faith to promise his readers the millennium if certain schemes of social reform were adopted; and readers anxious for the millennium were enthusiastic over the book. Wagner, in his “Foundations of Political Economy,” unfortunately not translated into English, made a [143] scrupulous investigation of those historical points which George had overlooked, and he was therefore unable to promise his readers the millennium. The consequence is that where Wagner counts one disciple George counts a thousand. Of the ultimate disappointment and evil which result when we trust ourselves to unhistorical theories of politics it is hardly necessary to speak. The work of political imagination may have the same artistic character as the historical novel, but it has a baneful practical influence which makes it, from the moralist’s standpoint, an illegitimate use of artistic resources.

It is not in his choice of subject matter, but in the form of his conclusions, that the work of the sociologist differs from that of the writer of history. The man who aims at specific explanations, however widespread, is an historian; the man who is occupied with verifying generalizations, however narrow, is a sociologist. Bryce’s “American Commonwealth” is essentially a work of history. That he deals with a set of contemporary events instead of successive ones is an accident of his subject. He has taken a cross section of history, instead of a longitudinal [144] section, because American political events are better understood by looking at them in the former way than in the latter. On the other hand, Bagehot’s “English Constitution,” though very similar to Bryce’s “American Commonwealth” in its subject and in its external arrangement, is predominantly a sociological work; and the same thing may be said yet more unreservedly of Burke’s “Reflections on the Revolution in France.” To Bagehot and to Burke, the understanding of English or French politics was not an end; it was rather an incident in the discovery and application of those profounder laws which regulate the politics of every nation.

The use of the name “sociology” to designate investigations of this kind dates from Auguste Comte; its widespread popular acceptance, which makes it necessary for us to use it whether we like it or not, results chiefly from the influence of Herbert Spencer. Many students of political theory regard the term as an unfortunate one; and I am inclined to think that we shall understand the real scope of our subject better if we use the word sociology only under protest. This is not because it is bad Latin, — though it is very bad [145] Latin indeed, — but because it has prevented the use of a much better term, ethics, the science of customs and morals. The effect of calling our subject sociology instead of ethics has been bad, both on the students of morals and on the students of society. It has caused the students of morals to follow old methods and to make their science predominantly a deductive rather than an empirical one. Instead of availing themselves of the results of history and making a social study of those laws of conduct which are essentially social phenomena, they have continued, like their fathers, to make it a branch of psychology. Meantime it has caused the professed students of sociology to go too far in the other direction; to neglect the help which they can get from wide-awake psychologists like Mark Baldwin, whose “Social and Ethical Interpretations in Mental Development” is really a profound contribution to political study, and to occupy themselves far more with classifying things which they see from the outside, than with explaining those which they get from the inside. Among people who have but a slight knowledge of the methods and purposes of political science, [146] there is a tendency to apply the name “sociology” to every description of the actions of men in society, whether scientific or not. The story of a public bath-house, the collection of a few wage statistics, or the scheme for a new method of measuring criminals are all described as studies in sociology; and the observer, who has perhaps collected a little material for the future historian, is deluded by the high-sounding name into the belief that he has done more truly scientific work than Gibbon or Mill, Nor do the really scientific sociologists wholly escape the baleful influence of a name which tends to separate their field so widely from that of the moralists. It leads them to make their science a branch of anthropology; to deal with men chiefly in masses; to give disproportionate importance to the study of prehistoric races just because they are so readily looked at in this way. Even if, like Bastian or Giddings, we give just importance to the development of mental processes, as distinct from physical ones, we are prone to begin at a point so remote from our own that we are unable to test the correctness of our descriptions.

Thus it has come to pass that there is in [147] the popular mind not only a separation but an antithesis between ethics, which deals with the profounder instincts derived from our consciousness, and the various branches of sociology, — law, economics, politics, — whose study and whose precepts are empirical. This way of looking at things is fundamentally wrong. All good sociological work has a profoundly ethical character. Aristotle, Hobbes, Rousseau, Blackstone, Adam Smith, not to mention a score of scarcely less distinguished writers, obtained their hold upon the public by the light which they threw upon ethical difficulties and moral problems. Their sociological work has sometimes been based on good ethics and sometimes on bad ethics; in fact, its ethics has generally been good or bad according to the greater or less completeness of the historical study which has preceded it. But some powerful ethical reasoning it has contained and must contain in order to secure a hold on mankind. It must explain men’s mental and moral attitude toward each other. Sociology is ethics, and ethics is sociology. The apparent opposition between the two is the result of deductive scientific methods on one side or the other.

[148] We have now defined the limits of our subject. We are seeking to gain a general view of that literature which is based upon history, expresses its conclusions in general laws, and seeks to explain men’s moral conduct as members of society. The successful investigations in this field fall under three groups: law, economics, and politics. The first seeks to explain, criticise, and justify the judicial relations of mankind as determined by the necessities of public security; the second their commercial relations as determined by the necessities of business; while the third, as yet in its infancy, attempts to consider their political and moral relations as members of a civil society in whose government they have a share.

The principles of law were of course formulated at a very early period. First we have codes of procedure, like the Twelve Tables of Rome; then we have formal rules of conduct which will be enforced by the civil authority; still later we have judicial decisions and legal text-books indicating the methods in which these traditional rules are applied to new cases. But none of these is literature. Legal literature, in the broader [149] sense, may be said to begin when we endeavor to explain the relations between the rules of law and the principles of natural justice accepted by the conscience of the community. The two greatest modern works of law, Blackstone’s “Commentaries” in England and Savigny’s “System of the Roman Law of To-day” in Germany, both owe their power to this underlying idea. Not that it is obtruded upon the reader, but that it is held in reserve as a vivifying force. Blackstone is distinguished from “Coke upon Littleton,” not in being a greater legal authority, — for, technically speaking, “Coke upon Littleton” is legal authority while Blackstone is not, — but because Blackstone wrote a work for the public and not for the lawyers; a work which put all English-speaking gentlemen in touch with the common law, and made it, not an instrument of professional success, but a part of the reader’s life. The ethical character manifest in Blackstone’s writings is from the necessity of the case even more saliently developed in the works of the international lawyers, and most of all in their great leader Grotius. For international law rests not [150] upon the authority of a superior who has the physical force to make his commands respected, but on the common sense and common consent of the parties in interest. A treatise on international law is therefore in the highest sense a treatise on ethics, — ethics put to the test of practice, and verified or rejected by history.

But profound as is the harmony between law and justice in civilized nations, the occasional dissonance is on that ground all the more marked. These dissonances have therefore occupied a large attention among those who studied the relations between law and ethics. What gives authority to certain principles which we call law, more or less independent of those other principles which we call justice? It was Hobbes who, in his “Leviathan,” first undertook a systematic answer to this question, and developed the theory of the social compact which, for good or ill, has formed the subject of so many political controversies. According to Hobbes, a state of nature is for mankind a state of anarchy. To avoid the intolerable evils of this condition, governments have been established for the purpose of giving [151] security. As long as a government does, in fact, give such security, it performs its part of the compact under which it was established; and its subjects, as representatives of the other party to such a compact, are bound to obey its ordinances. The evils of anarchy were, in Hobbes’s view, so great that no approximation to the enforcement of justice could be obtained except under such a surrender of personal rights and opinions as was implied in his fiction of the social compact.

In the hands of Hobbes this doctrine was a conservative force. It justified men in keeping quiet under evils against which their moral sense would otherwise have led them to revolt. But in the century following Hobbes, Locke and Rousseau made a use of the social compact theory of which its author never dreamed, — a use which made it not a conservative but a revolutionary power, — a use which reintroduced into politics and into law those discussions of natural justice which it had been Hobbes’s aim to exclude. For Rousseau denied emphatically that the government had fulfilled its part of the contract with the people when it simply [152] maintained a state of public security. It was not enough to govern, it must govern well; it must not merely repress positive disorder, but promote that justice and that happiness which the collective public opinion of the community demanded. The government, as Rousseau regarded it, was a trustee for the people, pledged and required to pursue popular happiness, and forfeiting its trust the moment it used it for any other purpose. It was on these views of Locke and Rousseau that the authors of the Declaration of Independence based their political doctrines. It was on these views that the French Revolution was founded, and in the exaggeration of these views that its excesses were committed.

But just at the time when this idea of the social compact was most widely influential in practice, it received its deathblow as a theory. With marvelously acute analysis, Bentham, in his “Fragment on Government,” proved that there was neither historically nor logically any such thing as a social compact. Government, according to Bentham, derives its authority, not from an ancient promise to give public security, nor from [153] a long standing trusteeship in behalf of the people, but from the habitual obedience of its subjects. Where such habitual obedience exists, there is government. The accredited acts of such a government are lawful, whether they conform to the ideas of natural justice in any individual case or not. If these acts are habitually contrary to the people’s sense of justice, discontent will culminate in revolution, and then the government will be changed so that another authority and another set of laws will come into being. But the second government, like the first, derives its authority from the fact of being able to exercise its power. Any rights which Hobbes might deduce from a supposed agreement by which it was brought into being, or any limitations on its authority which Rousseau might deduce from a similar hypothesis, are both alike fictitious.

Such was the ground taken by Bentham; and he has been followed by almost all English and American writers who deal with law from a professional standpoint. But there has very recently been a tendency to react from this extreme view and to take a middle ground between the position of [154] Bentham and Hobbes. For while it is undoubtedly true that people habitually obey a government, and that its authority is in fact based on this habitual obedience, it is also true that they obey cheerfully only within certain limits set by public opinion, and that beyond those limits they defeat the governmental authority, not by a revolution, but by the quieter process of nullification. The same habit which establishes the government establishes bounds within which it regards the authority of that government as salutary, and beyond which it will not encourage or even allow the government to go. This view was foreshadowed by Burke in some of the noblest of his political orations. It was applied historically by Sir Henry Maine in his studies of Indian village communities. It has received vigorous support from Herbert Spencer in his brilliant collection of essays, “The Man versus the State.” In America, where the extreme views of Bentham have never enjoyed the unquestioned authority which they possessed in England, even professional lawyers like Abbott Lawrence Lowell have developed theories of law and government based on this [155] view. It only remains for some man of genius to summarize the conclusions of these scattered works, and to develop a theory of the relations between law and justice which shall do for the students of our day what Aristotle did for those of two thousand years ago.

The study of economics, or principles of commerce, began much later than the study of law. The recognition of the ethical character of governments antedated by at least two thousand years the recognition of the ethical character of commerce. Those who look at business operations from the outside, as most of the early writers did, regard them as presumably immoral; as bearing the same relations to the principles of justice which the thief bears to the policeman. Aristotle, Cicero, Aquinas, are all actuated by this idea. It was reserved for Adam Smith to develop a philosophy of business which was in the highest and best sense of the word a moral philosophy. There have been a good many needless inquiries as to the reasons which make the “Wealth of Nations” superior in merit and influence to the many other acute economic [156] writings in the latter part of the last century. The answer to these inquiries is a simple one. It was because Smith presented clearly to the reader the essentially moral character of business under modern conditions. His predecessors had generally thought of trade as a bargain, as a contest between buyer and seller, where the more skillful and more unscrupulous party gained the advantage over the other. Smith showed how under free competition the self-interest of the several parties, intelligently pursued, conduced to the highest advantage of the community. Did high prices prevail? It was a symptom of scarcity. If we forbade the seller to take advantage of that scarcity, we perpetuated the evil. If, on the other hand, we invited other sellers to compete with him, we directed the industrial forces of the community to the point where they are most needed; we relieved the scarcity of which the high price is but a symptom, and at comparatively small expense to society effected a lasting cure. There is not time to develop this theory of Smith’s in all its varied applications, or to show how, under the marvelous adjustments of modern business, price tends [157] to adjust itself to cost, and cost to be reduced to such a degree as to give the various members of the community the maximum of utility with the minimum of sacrifice. That Smith saw this truth, was his fundamental merit. That he was the first to see it in anything like its full scope, that he had the power to verify it, the candor to recognize its limits, the vigorous English in which to communicate his ideas to others, are facts which give the “Wealth of Nations” the place it deservedly holds in science and in literature. Not in economic science only, but in the whole field of morals have we learned from Adam Smith to expect a harmony of interests between the enlightened self-interest of the individual and the public needs of the community. The fact that the completeness of this harmony has been exaggerated by subsequent writers does not detract from the merit of its discoverer, but rather is a testimony to his power.

Of course Smith’s economic principles were widely called in question and vigorously debated. Some rejected his views altogether. Out of this rejection came the socialist controversy. Others held that his [158] principles of commerce were true as between individuals, but not as between nations; that in the latter case we necessarily had a bargain and a contest rather than a competition, a conflict of interests rather than a harmony. Out of this grew the protectionist controversy. The whole problem of protection is so interwoven with difficult points in the theory of taxation that the best discussion of the subject is often highly technical, and scarcely belongs to the domain of literature. But it would be wrong, in the city of Philadelphia, to give a review of economic writing which should pass over in silence the honored name of Henry C. Carey, who alone, perhaps, among protectionist writers meets the points of Adam Smith with a moral purpose not less profound than that of his opponent.

The socialist controversy belongs in far larger degree to the domain of literature. For half a century succeeding Adam Smith the benefits of increased competition were so great that all classes joined in demanding the removal of barriers against trade. But by the middle of the nineteenth century it had become quite evident that universal [159] happiness was not to be obtained in this way. Under the influence of Malthus many of the professed economists said that it was useless to strive in that direction; that with an increase of population misery must be the lot of the larger part of mankind. Such views aroused a reaction against commercialism. The literature of this reaction falls into two groups, — that of the Christian or conservative socialists, represented in English by Carlyle, Kingsley, and Ruskin, and that of the social democracy, whose great leaders in literature as well as in politics were Lassalle and Marx. The work of the Christian socialists has given us some charming examples of literary art. For the most part, however, the history of this school illustrates the danger of attempts to write on sociology without the necessary historical study. When it came to practical questions the Christian socialists as a body were found on the side of the slaveholder and the tyrant. Actual progress in emancipation came from the cautious and somewhat pessimistic student like Mill or Bright, who saw the difficulties in the way of reform, rather than from the man to whom impatience [160] seemed a virtue and idealism a substitute for history.

Lassalle and Marx deserve far more attention. Lassalle’s works have not been translated into English, and those of Marx are too voluminous and too abstruse for the general reader; but a good account of their character and influence can be found in Rae’s “Contemporary Socialism.” Lassalle was primarily a student of history, Marx a critic of actual business conditions. Lassalle thought that he discovered a law of historical evolution by which the control of business was moving farther and farther down among the masses of the people. Adam Smith’s work represented to him a period of transition from a narrower to a broader economy. It had the merit of taking business out of the hands of the privileged classes. It had the demerit of incompleteness, in that it left it in the hands of the property-owners. The evils of this incomplete work were accentuated — and over-accentuated — by Lassalle and Marx and their followers. Starting from the Aristotelian dogma that value is based on labor, Marx showed that the laborer did not get at present [161] all the product, but only a part of it; and he held that the other part, kept back from the laborer, represented legalized robbery.

Of the great ability of these writers and of their importance in the world’s literature there can be no doubt. In intellectual brilliancy they were probably superior to their greatest contemporary among the defenders of the existing order, — John Stuart Mill. Their failure was the result of a faulty method. Instead of starting from historical facts and working out towards explanations, they started with a principle of deductive ethics, that labor was necessarily the source of value. It was not in intellectual acuteness that they failed by comparison with Adam Smith, but in the intrinsic weakness of purely deductive methods for dealing with social phenomena. And it was just by knowing when to abandon these methods that John Stuart Mill succeeded. It is the fashion nowadays to criticise Mill’s economic writings unsparingly, to say that he carried nothing out to its logical conclusion, that he used neither the relentless logic of the last century nor the Darwinian methods [162] of the present. Yet Mill was greater than his critics. He had a profound conception of the importance of his subject in its moral aspects. He had a wide knowledge of facts. He had infinite industry in testing those facts. The very incompleteness of his conclusions, which has been made a subject of complaint against him, was the result of that candor which would not allow him to deal unscrupulously with facts that interfered with his theories. Great in the sense of Adam Smith he probably was not, at any rate as an economist, for he developed no new truths of wide-reaching importance. His work was not a work of seedtime, but a work of harvest. It was his to gather and store for use the fruit which Adam Smith had sown.

But the middle of the nineteenth century witnessed the beginnings of a political science wider than the study of law or the study of economics. Men’s minds were no longer satisfied with analyzing the relations between law and justice or between commerce and justice. They demanded to know what was that justice itself, and who made it. The Catholic theory that it was made by the [163] Church, and the Protestant theory that each man made it for himself, were found to be equally inadequate for explaining historical events. We needed a broader science of politics, which should explain the social structure and the public opinion which held it together, — the political entity, of which law was but one manifestation and business another.

The problem was not a new one. Men had tried to solve it in all ages; and at least four attempts had been made which possessed great merit, whether viewed from the standpoint of scientific care, of literary form, or of practical influence. These were the “Politics” of Aristotle, at the culmination of Greek thought; the “Republic” of Jean Bodin, at the close of the Middle Ages; the “Spirit of the Laws” of Montesquieu, in the literary movement which preceded the French Revolution, and the “Philosophy of History and Law” of Hegel. It was the method of analysis which was new. The Darwinian theory, with its doctrine of survival and elimination, gave us a means of explaining political evolution which our ancestors had not possessed. Crude as were the first efforts in [164] its application, and incomplete as are the results even now attained, it represents a new power in political and moral study. In one sense it was not really new; for orators like Burke and Webster and Lincoln were applying to the problems of practical statesmanship those conceptions of evolution and struggle and survival which we associate with the name of Darwin. But the growth of the modern science of biology has had a profound influence on the science and literature of politics; and those ideas which a century or even a half century ago were but the occasional inspirations of our men of genius, are now being systematized and developed in all directions. They form the background of books like Kidd’s “Social Evolution” or Fiske’s “Destiny of Man;” they are reflected in almost every page of the political essays of John Morley; they are made the basis of scientific studies as diverse as those of Spencer, Giddings, and — best of all — Bagehot, whose “Physics and Politics” perhaps represent the high-water mark of constructive attainment in this field of literary and scientific activity. Not that Bagehot’s work is in any sense final; the great book [165] to which future generations shall refer as marking an epoch in this progress remains yet to be written.

But though we cannot yet point to any such culminating achievement, we can indicate with much precision the fundamental ideas which modern political science is following, — the lines of development —

“Where thought on thought is piled till some vast mass
Shall loosen, and the nations echo round.”

The first of these fundamental ideas is that of race character. Each social group — horde, tribe, or nation — has its type of personal development. The habits of the race limit the activity of the individual. Institutions, religions, philosophies of life and conduct, are but the expressions of this race type. This is what is really meant by saying that society is an organism. The men who first made this expression popular, like Spencer, tended to carry too far this analogy to a biological organism, and to study the processes of social nutrition rather than those of social psychology. But this error is largely a thing of the past. The success of a book like Kidd’s “Social Evolution,” in spite of the vagueness or crudeness of many [166] of its parts, shows how eagerly people are looking for a science which shall lay stress on explaining their beliefs and moral characteristics rather than their visible organization.

A second fundamental idea is that this race character is but the record of the past history of the people; embodying itself in habits of action which are a second nature to the individuals that compose it. “In every man,” says Morley, “the substantial foundations of action consist of the accumulated layers, which various generations of ancestors have placed for him. The greater part of our sentiments act most effectively when they act most mechanically.” Or to quote the noble passage in Burke which suggested this utterance of Morley: “We are afraid to put men to live and trade each on his own private stock of reason, because we suspect that this stock in each man is small, and that the individuals would do better to avail themselves of the general bank and capital of nations and of ages. Many of our men of speculation, instead of exploding general prejudices, employ their sagacity to discover the latent wisdom which prevails in them. [167] If they find what they seek, and they seldom fail, they think it more wise to continue the prejudice with the reason involved, than to cast away the coat of prejudice, and to leave nothing but the naked reason: because prejudice with its reason has a motive to give action to that reason, and an affection which will give it permanence. . . . Prejudice renders a man’s virtue his habit, and not a series of unconnected acts.”

A third idea following closely upon the second is that these habits of mind have been given their shape in a struggle for existence between different races, no less severe than that which prevails among the lower animals; only this human struggle is chiefly a conflict between ethical types rather than physiological ones, and stamps its verdict of fitness or unfitness upon moral characteristics rather than physical structures. This is where the work of Darwin has given the modern investigator his greatest advantage. There were writers prior to Darwin who, like Hegel, were just as completely possessed of the idea of evolution as Spencer or Bagehot; but Hegel and every other political writer who preceded Darwin found it [168] hard to get, outside of his own consciousness, either a test of fitness or a compelling force which should make for progress. To the Darwinian this is easy. Here are two tribes, with different standards of morality. One standard preserves the race which holds it, and is therefore self-perpetuating; the other has the reverse effect, and is therefore self-destructive. The process of elimination by natural selection does its work and registers its verdict.

But the race characteristics which contributed to success in one age or state of civilization may not be equally successful in a later age or more advanced state. The race which would be permanently successful must have the means of adapting itself to new conditions. A really permanent system of morals must provide for progress as well as discipline, for flexibility to meet future conditions as well as firmness to deal with present ones. How is the combination to be secured ? The answer to this question gives us the modern doctrine of liberty, as developed by Mill and his followers. This represents the fourth and greatest of the ideas of modern social philosophy, which can be [169] applied to almost every department of human activity — commercial freedom, religious toleration, or constitutional government. We cannot better close our survey of political literature than by availing ourself of John Morley’s unrivaled powers of statement in summarizing this great principle.

“We may best estimate the worth and the significance of the doctrine of Liberty by considering the line of thought and observation which led to it. To begin with, it is in Mr. Mill’s hands something quite different from the same doctrine as preached by the French revolutionary school; indeed, one might even call it reactionary, in respect of the French theory of a hundred years back. It reposes on no principle of abstract right, but, like the rest of its author’s opinions, on principles of utility and experience.

“There are many people who believe that if you only make the ruling body big enough, it is sure to be either very wise itself, or very eager to choose wise leaders. Mr. Mill, as any one who is familiar with his writings is well aware, did not hold this opinion. He had no more partiality for mob rule than De Maistre or Goethe or Mr. Carlyle. [170] He saw its evils more clearly than any of these eminent men, because he had a more scientific eye, and because he had had the invaluable training of a political administrator on a large scale, and in a very responsible post. But he did not content himself with seeing these evils, and he wasted no energy in passionate denunciation of them, which he knew must prove futile. . . . Mr. Carlyle, and one or two rhetorical imitators, poured malediction on the many-headed populace, and with a rather pitiful impatience insisted that the only hope for men lay in their finding and obeying a strong man, a king, a hero, a dictator. How he was to be found, neither the master nor his still angrier and more impatient mimics could ever tell us.

“Now Mr. Mill’s doctrine laid down the main condition of finding your hero; namely, that all ways should be left open to him, because no man, nor the majority of men, could possibly tell by which of these ways their deliverers were from time to time destined to present themselves. Wits have caricatured all this, by asking us whether by encouraging the tares to grow, you give the [171] wheat a better chance. This is as misleading as such metaphors usually are. The doctrine of liberty rests on a faith drawn from the observation of human progress, that though we know wheat to be serviceable and tares to be worthless, yet there are in the great seed-plot of human nature a thousand rudimentary germs, not wheat and not tares, of whose properties we have not had a fair opportunity of assuring ourselves. If you are too eager to pluck up the tares, you are very likely to pluck up with them these untried possibilities of human excellence, and you are, moreover, very likely to injure the growing wheat as well. The demonstration of this lies in the recorded experience of mankind.”

 

Source: H. Morse Stephens et al. Counsel upon the Reading of Books, Boston and New York: Houghton, Mifflin and Company. The Riverside Press, Cambridge, 1901.

Image Source: Wikipedia, Arthur Twining Hadley.

Categories
Chicago Suggested Reading Syllabus

Chicago. Economics 300A. Core Theory. Gary Becker, 1956

The first required course in economic theory in a graduate program is intended (to mix metaphors) to get students on the same page and up to speed with core theory. I have posted earlier Chicago material for Jacob Viner, Milton Friedman [ (1946), (1947) and (1948)], and Lloyd Metzler. While this posting moves us well into the 1950s  and out my historian’s comfort zone (i.e. into my own lifetime), for younger followers of Economics in the Rear-view Mirror 1956 probably seems ancient enough to be included here. Besides which, it is never in bad taste to extend a time series by adding an additional observation. It is interesting to note that Alfred Marshall has survived at least this long on the Chicago required reading list for economic theory.

_______________

Economics 300A
Autumn 1956
Reading Assignments by G. Becker

 

NOTES:

1) A knowledge of the material in George Stigler, A Theory of Price or in Kenneth Boulding, Economic Analysis, is a prerequisite.
2) Readings marked with an asterisk (*) are recommended, not required.

 

I. INTRODUCTION

Friedman, M., Lecture Notes, pp. 1-16.
Knight, F. H., The Economic Organization, pp. 1-37.
Friedman, Milton, “The New Methodology of Positive Economics,” in Essays in Positive Economics.
*Hayek, F. A., “The Use of Knowledge in Society,” American Economic Review, September 1945, reprinted in Individualism and Economic Order.
*Keynes, J. N., The Scope and Method of Political Economy, pp. 1-83.

 

II. DEMAND ANALYSIS

Marshall, A., Principles of Economics, Book III, chs. 2-4; Book V, chs. 1-2.
Friedman, M., Notes, pp. 16-68.
Friedman, M., “The Marshallian Demand Curve,” Journal of Political Economy, December 1949, reprinted in Essays in Positive Economics.
Hicks, J. R., Value and Capital, Part I.
*Hicks, J. R., A Revision of Demand Theory.
*Slutsky, E., “On the Theory of the Budget of the Consumer,” Readings in Price Theory.
Knight, F. H., Risk, Uncertainty and Profit, ch. 3.
Schultz, H., The Meaning of Statistical Demand Curves, pp. 1-10.
Working, E. J., “What do Statistical ‘Demand Curves’ Show?”, reprinted in Readings in Price Theory.
Wold, H., Demand Analysis, ch. 1.
*Stigler, G.J., “The Early History of Empirical Studies of Consumer Behavior,” Journal of Political Economy, April 1954.
Friedman, M., Notes, pp. 69-75.
*Friedman, M., Notes, pp. 69-75.
*Friedman, M., and Savage, L. J., “The Utility Analysis of Choices Involving Risk,” reprinted in Readings in Price Theory.
Friedman, M., “The Expected Utility Hypothesis and the Measurability of Utility,” Journal of Political Economy, December 1952, pp. 463-474.
*Alchian, A., “The Meaning of Utility Measurement,” American Economic Review, March 1953, pp. 28-50.
Friedman, M., “Choice, Chance, and the Personal Distribution of Income,” Journal of Political Economy, August 1953, pp. 277-290.

 

III. SUPPLY OF PRODUCTS

Friedman, M., Notes, pp. 75-132.
Marshall, A., Book V, chs. 3, 4, 5, 12, Appendix H.
*Viner, J., “Cost Curves and Supply Curves,” reprinted in Readings in Price Theory.
*Robinson, J., Economics of Overhead Costs, ch. 9.
Robinson, J., “Rising Supply Price,” in Readings in Price Theory.
Apel, H., “Marginal Cost Constancy and Its Implications,” American Economic Review, December 1948, pp. 870-885.
*Coase, R. H., “The Nature of the Firm,” in Readings in Price Theory.
Chamberlin, E., The Theory of Monopolistic Competition, chs. 3, 4, 5.
Stigler, G. J., “Monopolistic Competition in Retrospect,” in Five Lectures on Economic Problems.
*Triffin, R., Monopolistic Competition and General Equilibrium Theory, esp. Part II.
Harberger, A. C., “Monopoly and Resource Allocation,” Proceedings of the American Economic Review (May 1954).
Stigler, G. J., “Competition in the United States,” in Five Lectures on Economic Problems.
Stigler, G. J., “The Statistics of Monopoly and Merger,” Journal of Political Economy, February 1956.
Stigler, G. J., “The Kinky Oligopoly Demand Curve and Rigid Prices,” in Readings in Price Theory.
*Robinson, E.A.G., Monopoly.
*Robinson, E.A.G., The Structure of Competitive Industry.
*Plant, A., “The Economic Theory Concerning Patents for Inventions,” Economica, February 1934.

 

Source: Hoover Institution Archives, Milton Friedman Papers, Box 77, Folder 1 “University of Chicago Econ 300A & B”.

Image Source: Photo credited to Joe Sterbenc/Becker Friedman Institute published on-line with the story “University mourns Gary Becker,” The Chicago Maroon May 6, 2014.