Categories
Chicago Suggested Reading

Chicago. History of Economic Thought. Frank Knight, 1946

This is now the fifth course reading list  I have posted from the valuable collection of University of Chicago lecture notes taken by the economist Norman Kaplan. The other four syllabi are from courses taught by Douglas, Friedman, Lange, and Mints. Today we have the “Working Bibliography” that Frank Knight provided students taking his graduate course on the history of economic thought. I have managed to add a good number of links to the items he cited just as I have for the analogous course offered at Harvard by Joseph Schumpeter in 1940.

Incidentally, the distinguished economic historian Stanley Engerman is the person to whom we all owe an enormous debt of gratitude. Professor Engerman was a colleague and friend of Norman Kaplan at the University of Rochester. After Kaplan’s death Engerman helped sort through the papers left in his deceased colleague’s office, spotted the extraordinary collection of extensive student notes for Kaplan’s years at the University of Chicago and then had the notes shipped to the University of Chicago Archives. 

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[Course Announcement]

[Economics] 302. History of Economic Thought. Brief survey of the whole field of economic thought and a more intensive study of the “classical school” of British economists, whose doctrines are studied in relation to the problems and discussions of today. Prereq: Econ 301 or equiv. Win: TuThu 3:30-5; Knight.

 

Source:  University of Chicago, Announcements–The College and the Divisions, Sessions of 1945-1946, p. 216.

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ECONOMICS 302
HISTORY OF ECONOMIC THOUGHT
Winter 1946

Working Bibliography

General Character of the Course: A very brief survey of economic thought prior to the “classical school,” with chief attention devoted to the latter, especially to the price and distribution theory of Smith, Ricardo, Senior and Mill. Limited reference to Historical or Socialistic Schools. Matter outside the classical doctrine to be obtained chiefly from reading.

General Works (“Manuals”)

Ferguson, John M., Landmarks of Economic Thought.

Gray, Alexander, The Development of Economic Doctrine.

Two recent books very readable, and excellent within their scope. Gray has nothing on the historical schools. Neither is adequate on the classical writers.

 

Roll, Erich, History of Economic Thought. Somewhat Marxist slant.

Haney, L. H., History of Economic Thought. The fullest book covering the field; table of contents gives a fairly good arrangement of authors into groups or tendencies.
[1920 edition]

Ingram, J. K., A History of Political Economy. Briefer than Haney, and usable.

Spann, O., History of Economics. Translated from the German. Valuable for its intense opposition to the viewpoint of the classical school in favor of an organismic or universalistic standpoint. [Original: Othmar Spann, Die Haupttheorien der Volkswirtschaftslehre, 17th ed. 1928.]

Schumpeter, Joseph, Epochen der Dogmen- und Methodengeschichte, contained in Grundriss der Sozialökonomik Vol. I. [English translation]

Oncken, A. Geschichte der National Ökonomie. (Down to Adam Smith).

Gide, C., and Rist, C., History of Economic Doctrines (in French, or Translated from the French). (Begins with the Physiocrats). A competent but uninspired book. Emphasis on French work and on the socialistic schools.

Scott, William A., The Development of Economics. Covers modern period, beginning with background of classical economics. Excellent summaries, notable omissions (esp. Mathematical economists).

Whittaker, Edmund, A History of Economic Ideas. The best book in the field in content but massive, confusing, and repetitious through organization on the topical principle. First half deals with institutional and intellectual history rather than analytical economic thought. [Cf. his Schools and Streams of Economic Thought. Chicago: Rand McNally, 1960.]

Heimann, Eduard, History of Economic Doctrines. An Introduction to Economic Theory. Oxford University Press, 1945. Pp. ix, 263 (245). More introduction than history.

Salin, Edgar, Geschichte der Volkswirtschaftslehre. Covers the field briefly in an interpretive, historical-philosophical manner.

Encyclopedias; esp. Palgrave, Dictionary of Political Economy. (Ed. Henry Higgs 1926) and the Encyclopedia of the Social Sciences; on men and movements, and especially, Bibliographies. [Palgrave, 1912-1915.  Vol I (A-E), Vol II (F-M), Vol III (N-Z)]

See Bibliographical Notes in Haney (above) 3d Revised Edition, 1936, pp. 803-809.

 

On the Whole Period before the Classical School

Monroe, A. E. Early Economic Thought. Lengthy excerpts from some twenty important writers.

Oncken, A. See under General Works.

Sewall, H. R. The Theory of Value before Adam Smith, Publications of the American Economic Association, 1901.

Dunning, W. A., History of Political Theories, Ancient and Modern; also ibid. From Luther to Montesquieu. (Pre-classical economic thought being essentially political thought.)

 

Greco-Roman Economics

Simey, Miss E., article entitled “Economic Theory among the Greeks and Romans.” Economic Review, 1900. Copies on reserve. Best short account.

Laistner, M. L. W., Greek Economics. Valuable introduction and excerpts.

Calhoun, G. M., Business Life of Ancient Athens. Introduction and text valuable for background.

 

Medieval

Ashley, W. J. English Economic History and Theory, Vol. 1, pt. I, Chap. 3, and Vol. I, Pt. II, Chap. 6. Best general account.

O’Brien, Geo., An Essay on Medieval Economic Teaching. Highly important, especially because written from a Catholic point of view.

Tawney, R. H., Religion and the Rise of Capitalism. Chapter One, on The Medieval Background

 

Mercantilism

Heckscher, Eli F., Mercantilism, 2 vols. [Volume One; Volume Two]

Horrocks, J. W., A Short History of Mercantilism.

Schmoller, Gustav, The Mercantile System. Ashley Economic Classics. Invaluable also as a specimen of the German historical economics. Inquire at desk. E11.

Ashley, W. J. The Tory Origin of Free Trade Policy, in the Quarterly Journal of Economics, Vol. 11. Also in Surveys Historical and Economic.

Johnson, E. A. J. The Predecessors of Adam Smith.

Mun, Thomas, England’s Treasure by Forraign Trade. Ashley Economic Classics

Furniss, E. S., The Position of the Laborer in a System of Nationalism.

Viner, J., English Theories of Foreign Trade before Adam Smith, in Journal of Political Economy, Vol. 38, nos. 3 and 4. Reprinted in Studies in the Theory of International Trade, Harpers, 1937.

 

Physiocrats
(Given very little attention in this course.)

Higgs, Henry, The Physiocrats.

Ware, Norman, article on “The Physiocrats” in American Economic Review, 1931.

Bloomfield, Arthur I., Foreign Trade Doctrines of the Physiocrats. American Economic Review, Volume XXVIII, no. 4, December 1938 (Reprint on Reserve).

Turgot, A. R. J., Formation and Distribution of Riches. (Ashley Economic Classics.)

 

Classical School

Whitaker, A. C., Labor Theory of Value in English Political Economy. Nearly essential, if obtainable (Purchase).

Bowley, Marian, Nassau Senior and Classical Economics (Purchase, alternative to Whitaker). Better, but more difficult.

Cannan, Edwin, Theories of Production and Distribution. Valuable, but laborious reading.

Cannan, Edwin, Review of Economic Theory. Used selectively, more available than his other book.

Taussig, F. W. Wages and Capital (London School Reprint).

Knight, F. H. The Ricardian Theory of Production and Distribution. Reprint from the Canadian Journal of Economics and Political Science.

Cannan, Edwin, (ed.), Lectures of Adam Smith.

Smith, Adam, Wealth of Nations.  Full text, Everyman’s Library (2 vols.) or Modern Library (Reprint of Cannan edition—1 vol.) most available. Abridged edition edited by W. J. Ashley gives portions covered in the course conveniently in one small volume.  Cannan edition (2 vols.) the definitive edition, but expensive and bulky for class use.

Ricardo, David, Principles of Political Economy. Available in Everyman’s Library (1 vol.)  Gonner edition best. (London, C. Bell and Sons: Bohn’s Libraries). [Sraffa edition]

Senior, N. W., Outline of Political Economy. Reprinted 1938, Allen and Unwin.

Mill, J. S., Principles of Political Economy. Ashley ed., Longmans, 1 vol.

 

Subjective Value or Marginal Utility School

Smart, Wm., Introduction to the Theory of Value.

Jevons, W. S. Theory of Political Economy.

Wieser, F., Natural Value.

Smart’s prefaces to Böhm-Bawerk’s two main volumes and to Wieser, Natural Value.

Böhm-Bawerk, Capital and Interest and Positive Theory of Capital.

Weinberger, Otto. Die Grenznutzenschule.

Mises, Ludwig, Bemerkungen zum Grundproblem der subjektivistischen Wertlehre, contained in Archiv für Sozialwissenschaft und Sozialpolitik, Band 59, Heft 1.

 

Historical and Institutional and Socialistic Schools

See articles in Palgrave’s Dictionary of Political Economy and in the Encyclopedia of the Social Sciences.

 

 

Source: University of Chicago Archives. Norman Maurice Kaplan Papers. Box 1, Folder 10.

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

Categories
Suggested Reading Syllabus Yale

Yale. Graduate Course Keynesian Economics, Tobin. 1951-52

James Tobin came to Yale in 1950 at the rank of associate professor following his three years as a Junior Fellow of Harvard’s Society of Fellows that included a research stay at Richard Stone’s Department of Applied Economics in Cambridge. His Yale graduate course on “Aggregative Theory” covered contemporary Keynesian macroeconomics at mid-century.

This picture in his navy uniform is dated December 1945 according to the Yale archives.

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Economics 110: 1951-52

1. Introduction to Model-building. Equilibrium Systems and their Stability

T. C. Schelling, National Income Behavior, Chs. 2, 3, 4 (pp 41-2), 5, 12.
R. G. D. Allen, Mathematical Analysis for Economists, Sections 2.9, 11.6, 11.7.
P. A. Samuelson, Foundations of Economic Analysis, Chs. I, II, and pp. 257-260.
Schelling, pp. 42-52.

2. The Keynesian and Classical Aggregative Models

J. R. Hicks, “Mr. Keynes and the Classics; a Suggested Interpretation”, Econometrica, V, 1937, p. 147.
R. F. Harrod, “Keynes and Traditional Theory” Econometrica, V, 1937 (reprinted, in The New Economics, p. 591.)
F. Modigliani, “Liquidity Preference and the Theory of Interest and Money” Econometrica, XII, 1944.
O. Lange, “The Rate of Interest and the Optimum Propensity to Consume” Economica, 1938 (reprinted in Readings in Business Cycle Theory, p. 169.
L. R. Klein, The Keynesian Revolution, Ch. III.

J. E. Meade, “A Simplified Model of Keynes’ System”, Review of Economic Studies, February 1937 (reprinted in The New Economics, p. 606)
Samuelson, Foundations, pp. 276-283.

W. Leontief, “The Fundamental Assumption of Keynes’ ‘General Theory’” Quarterly Journal of Economics, LI, 1936, p. 192.
W. Leontief, “Postulates: Keynes’ General Theory and the Classicists,” The New Economics, p. 232.

L. R. Klein, The Keynesian Revolution, 199-206.
J. Marschak, Income, Employment, and the Price Level, Lectures 18, 19, 20, Supplementary Lectures II, III.

3. The Consumption Function

a. Asset Holdings and the “Pigou Effect”

A. C. Pigou, “The Classical Stationary State”, EJ, 1943, 343-351.
M. Kalecki, “Professor Pigou on ‘The Classical Stationary State’—A Comment”, EJ 1944, 131-2.
Pigou, “Economic Progress in a Stable Environment”, E, 1947, 180-90.
Don Patinkin, “Price Flexibility and Full Employment”, AER 1948, 543-64 and Comment by H. Stein and Reply by Patinkin, AER 1949, 725-8.
Klein, 206-213
[Handwritten addition:] G. Ackley, “The Wealth-Saving Relationship”, JPE 1951, 154-161.

b. Problems of Aggregation

Klein, 192-196.
Staehle, “Short-period Variations in the Distribution of Incomes,” REStat 1937, 133-143, and 1939, 129-30.
Marschak, “Personal and Collective Budget Functions” REStat 1939, 161-70.
T. Haavelmo, “Family Expenditures and the Marginal Propensity to Consume”, Ec 1947, 335-341.
J. S. Duesenberry, Income, Saving and the Theory of Consumer Behavior, Chapters III, IV.
H. Lubell, “Effects of Income Redistribution on Consumers’ Expenditures” AER 1947, 157-170 and 930-1.
D. Brady and R. Friedman, “Savings and the Income Distribution”, Studies in Income and Wealth, X, 247-265.

c. The “secular” and “cyclical” functions

A. H. Hansen, Economic Policy and Full Employment, Ch. XIV.
A. H. Hansen, “A Note on the Secular Consumption Function” AER 1950, 662-4.
F. Modigliani, “Fluctuations in the Saving-Income Ratio” Studies in Income and Wealth, XI, 371-443.
J. S. Duesenberry, op. cit., Chapters III, IV, V.
L. Metzler, “Three Lags in the Circular Flow of Income”, in Income, Employment, and Public Policy (in honor of Hansen), 11-32.
R. P. Mack, “The Direction of Change in Income and the Consumption Function”, REStat, 1948, 239-258.

4. Liquidity Preference and the Theory of Interest

T. Wilson, Fluctuations in Income and Employment, Chapters I, II.
D. H. Robertson, Essays in Monetary Theory, Ch. I.
D. H. Robertson, “Some Notes on the Theory of Interest” in Money, Trade, and Economic Growth (in honor of J. H. Williams) 193-209.
A. H. Hansen, Monetary Theory and Fiscal Policy, Chapters 3, 4.
W. Fellner, Monetary Policies and Full Employment, Chapters V, VI.
N. Kaldor, “Speculation and Economic Stability” RES Oct. 1939, 1-27.
M. Kalecki, “The Short-Term and the Long-term Rate of Interest” Studies in Economic Dynamics, 32-46.
J. R. Hicks, Value and Capital, Chapters XI, XII, XIII.
P. A. Samuelson, Foundations, 122-4.
T. Scitovsky, “A Study of Interest and Capital” E 1940, 293-317.
A. Smithies, “Process Analysis and Equilibrium Analysis” EC 1942, 26-38.
[Handwritten addition:] L. Metzler, “Wealth, Saving, and the Rate of Interest”, JPE 1951, 93-113.

5. The Investment Function

Klein, 196-199.
Wilson, op. cit., Chapters V, VI, VII.
N. Kaldor, “A Model of the Trade Cycle” EJ 1940, 78-92.
M. Kalecki, “A New Approach to the Problem of Business Cycles” RES, Vol. XVI, 1949-50, 57-64.
A. P. Lerner, The Economics of Control, Chapter 25.
R. M. Goodwin, “Econometrics in Business-Cycle Analysis” in Hansen, Business Cycles and National Income, 442-449 (rest of chapter will be assigned later)
M. Kalecki, “The Principle of Increasing Risk”, Essays in the Theory of Economic Fluctuations, 95-106.

H. D. Henderson, “The Significance of the Rate of Interest” OEP #1, October 1938, 1-13.
J. Meade and P. W. S. Andrews, “Summary of Replies to Questions on the Effects of Interest Rates” OEP #1, October 1938, 14-31.
R. S. Sayers, “Business Men and the Terms of Borrowing” OEP #3, Feb. 1940, 23-31.
P.W. S. Andrews, “A Further Inquiry into the Effects of Rates of Interest”, OEP #3, Feb. 1940, 32-73.

K. Arrow, “Alternative Approaches to the Theory of choice in Risk-taking Situations” EC October 1951.

 

End of First Term

Abbreviations:

AER:                American Economic Review
EJ:                   Economic Journal
E:                     Economica
EC:                  Econometrica
QJE:                 Quarterly Journal of Economics
JPE:                 Journal of Political Economy
OEP:                Oxford Economic Papers
RES:                Review of Economic Studies
REStat:            Review of Economic(s and) Statistics

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Economics 110
Reading List for Second Term: Dynamic Aggregative Theory

1. The Meaning of “Dynamics”

Samuelson, “Dynamic Process Analysis,” in Survey of Contemporary Economics, 352-355, 374-376.
Frisch, “On the Notion of Equilibrium and Disequilibrium,” Review of Economic Studies, 1935-36, 100-106.
Samuelson, Foundations of Economic Analysis, 311-320, 350-355.
Harrod, Towards a Dynamic Economics, 1-19.

[Handwritten marginal comment: Baumol? Schelling?]

2. The Mathematics of Dynamics

Samuelson, “Dynamic Process Analysis,” 356-367, 377-387.
Tinbergen, Business Cycles in the U.S.A. 1919-1932, 15-18, 140-147.

Suggested for further study:
Allen, Mathematical Analysis for Economists, Chapter XVI.
Samuelson, Foundations, Appendix B.
[Handwritten addition:] Schelling, Appendix.

3. The Nature and Logic of Dynamic Business Cycle Theory

Tinbergen, “Econometric Business Cycle Research”, in Readings in Business Cycle Theory.
Samuelson, Foundations, 335-342.
Frisch, “Propagation Problems and Impulse Problems in Dynamic Economics”, Economic Essays in Honour of Gustav Cassel, 171-206.
Tinbergen, “Annual Survey: Quantitative Business Cycle Theory”, Econometrica, 1935, 241-308.
Schumpeter, Business Cycles, 179-192, 533-535.

4. The Short-run Stability of Aggregative Models

Samuelson, Foundations, 257-269, 276-283.
Kaldor, “A Model of the Trade Cycle,” Economic Journal, 1940, 78-92.
Smithies, “Process Analysis and Equilibrium Analysis,” Econometrica, 1942, 26-38.
Metzler, “Three Lags in the Circular Flow of Income,” in Income, Employment, and Public Policy (Essays in Honor of Alvin H. Hansen).
Metzler, “The Nature and Stability of Inventory Cycles,” Review of Economic Statistics, 1941, 113-129.

5. Capital Accumulation and Growth

Domar, “Capital Expansion, Rate of Growth, and Employment,” Econometrica, 1946, 137-148.
Domar, “Expansion and Employment,” American Economic Review, 1947, 42-55.
Harrod, “An Essay in Dynamic Theory”, Economic Journal 1939, 14-33.
Fellner, Monetary Policies and Full Employment, Chapter II.
Schelling, “Capital Growth and Equilibrium,” American Economic Review, 1947, 864-876.
Alexander, “The Accelerator as a Generator of Steady Growth,” Quarterly Journal of Economics, 1949, 174-197.

6. Capital Accumulation and Cycles

Samuelson, “Interaction between the Multiplier Analysis and the Principle of Acceleration,” in Readings in Business Cycle Theory, 261-269.
Kalecki, Essays in the Theory of Economic Fluctuations, 116-149.
(Suggested: Kalecki, “A Macrodynamic Theory of Business Cycles,” Econometrica, 1935, 327-344.)
Hicks, The Trade Cycle.
Leontief, “Recent Developments in the Study of Interindustrial Relationships, American Economic Review (Proceedings), Mar. 1949, 211-225.
Georgescu-Roegen, “Relaxation Phenomena in Linear Dynamic Models,” in Activity Analysis of Production and Allocation, (Cowles Commission Monograph 13).

7. The Dynamic Theory of Inflation

Keynes, How to Pay for the War, 57-74.
Koopmans, “The Dynamics of Inflation,” Review of Economic Statistics, 1942, 53-65.
Smithies, “The Behavior of Money National Income under Inflationary Conditions”, Quarterly Journal of Economics, 1942-43, 113-128.
Duesenberry, “The Mechanics of Inflation,” Review of Economics of Statistics, Mar. 1950, 144-149.
Holzmann, “Income Determination in Open Inflation,” Review of Economics & Statistics, Mar. 1950, 150-158.

 

Source: Yale University Library, Manuscripts and Archives. James Tobin Papers, Box 18, Folder “Ec 103 [sic]” and “Ec 110, 1951-52].

 

Image Source: Yale University Manuscripts & Archives. Digital Images Database. “James Tobin in war uniform (1945-December)”.

 

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”.

Categories
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.

___________________

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.

 

___________________

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.

______________________________________

[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.

______________________________________

[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.).

 _______________________________

[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.

_______________________________

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.

_______________________________

[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.

__________________________________

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.