Princeton. Syllabus and bibliography for public finance. Daniels, 1895

 

 

An original copy of the following twenty page, printed syllabus in public finance for Professor Winthrop More Daniels’ lectures on public finance at Princeton for 1895-96 can apparently be found in the Columbia University Library. According to a handwritten note on the back of the title page, this syllabus was a gift of Professor E.R.A. Seligman.

This post includes some biographical information together with a transcription of the full twenty page syllabus. At the very end of the post you will find links to all the collateral readings as well as the items included in Daniels’ bibliography of “authorities”.

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DANIELS, Winthrop More, 1867-

WINTHROP MORE DANIELS, A.M., Professor of Political Economy at Princeton, was born in Dayton, Ohio, September 30, 1867, son of Edwin Arthur and Mary Billings (Kilburn) Daniels, natives of Massachusetts, but of English ancestry. On the maternal side he is descended from Thomas Kilborne (the common ancestor of all the Kilburns in this country) who was born in the parish of Wood Ditton, County of Cambridge, in 1578, whence he migrated to New England in 1635. The Daniels family came to this country and settled in Massachusetts sometime in the seventeenth century. His early education was obtained at home in the Dayton Public Schools, and at Deaver Collegiate Institute. He was graduated at Princeton in the Class of 1888, and spent part of that year and of the years 1890 and 1891 in foreign travel. He was a teacher of classics in the Princeton Preparatory School in 1888, which position he filled for two years, when he went abroad, and spent two semesters at the University of Leipsic, Germany, studying economics and history. Returning to this country in 1891, he was appointed Instructor in Economics and Social Science at Wesleyan University, Middletown, Connecticut, remaining there for a year, when, in 1892, he was chosen Professor of Political Economy at Princeton, which position he now holds. Professor Daniels is a member of the Reform Club of New York City, the Nassau and Colonial Clubs of Princeton, and a member of the American Economic Association. He is independent in politics, and has made addresses favoring a revenue tariff and opposing free silver. He was married in 1898 to Joan Robertson of Montville, Connecticut. He has recently published a treatise entitled Elements of Public Finance.

Source: Joshua Lawrence Chamberlain, ed., Universities and their Sons: History, Influence and Characteristics of American Universities, with biographical sketches and Portraits of Alumni and Recipients of Honorary Degrees, Vol. 2 (Boston, 1899) p. 71.

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Obituary for Winthrop More Daniels, 1944

M. Daniels Dies; Former Head of ICC

Saybrook Man Succeeded Woodrow Wilson as Professor at Wesleyan and Princeton

Saybrook, Jan. 3.—(AP)—Winthrop More Daniels, 77, transportation expert who succeeded President Woodrow Wilson in professorship at Wesleyan and Princeton and later served under him in New Jersey as a public utility commissioner and in Washington as chairman of the Interstate Commerce Commission, died yesterday after a brief illness.

Daniels, who retired as professor of transportation at Yale several years ago, was a native of Dayton, O., and was an author of numerous books, including a history of American Railroads. He leaves his wife, Joan Robertson, and a son, Robertson Balfour. Funeral services will be held at the Saybrook Congregational Church Wednesday with burial in the local cemetery.

Daniels was on the Board of Public Utility Commissioners, New Jersey, while Wilson was governor of that state, and for a number of years was chairman of the ICC, during Wilson’s term as president. He was also a trustee of the New Haven Railroad from 1935 to 1937.

Served as ‘New Haven’ Trustee.

After taking degrees at Princeton and studying a year at the University of Leipzig, Daniels succeeded Wilson at Wesleyan, and later become professor of political economy at Princeton when Wilson left to become governor of New Jersey.

After three years as a member of the New Jersey Board of Public Utility Commissioners, Daniels accepted President Wilson’s call to become a member of the ICC, a post he held until 1923 when he resigned to come to Yale. He was chairman of the ICC from 1918 to 1919.

During the early stages of the “New Haven” Railroad reorganization proceedings, he agreed to serve as a trustee, finally retiring in 1937 to settle down at the house he built here.

In addition to writing numerous books, he also revised a continuation of Alexander Johnson’s History of the United States, and did a continuation of Johnson’s History of American Politics.

Source: Hartford Courant, January 4, 1944, p. 2.

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Syllabus of lectures upon public finance
by Professor Winthrop More Daniels
Princeton, N.J.  1895-96

 

PUBLIC FINANCE.

LECTURE I. INTRODUCTION.
THE DEFINITION AND SCOPE OF PUBLIC FINANCE.

1. Definition. Public Finance treats of the collection and expenditure of funds legally devoted to public ends, together with such effects, social, political and economic, which result from this exercise of governmental activity.
   1. Distinction between Public Finance and private finance.
   2. Importance of enforced collection.
   3. The French conception of Finance.
   4. The German conception of Finance.
   5. Derivation and meaning of the term—Finance.
2. Practical Bearings of Finance.
   1. Allegation that Finance is exclusively an Art.
   2. Bearing of Finance on the individual citizen’s income. Luce’s statement: Leroy Beaulieu’s statement.
   3. Special Importance of Finance in the United States.
3. Historical Bearings of Finance.
   1. Taxation as a dynamic historical agency: examples.
4. Political Bearings of Finance.
   1. History and Politics in general; their relation.
   2. Finance, the battlefield of Politics.
   3. Finance, the source of constitutional changes.
5. Economic Bearings of Finance.
   1. Effect of taxation upon social classes.
   2. Socialist proposals.
6. Relation of Finance to Cognate Disciplines.
   1. Classification of the Sciences.
   2. Relation of Finance to Law, Politics, Economics.

 

LECTURE II.
HISTORICAL DEVELOPMENT OF MODERN FINANCE.

1. The Modern Financial Constitution.
   1. The Modem Industrial (Factory) System: its characteristics.
   2. The Modern Financial System.
      1. Normal and calculable field of governmental activity.
      2. Periodic contributions in money.
      3. Popular control over governmental income and expenditure.
      4. Public Credit.
2. The Economic and Financial Constitution of Athens.
   1. Economic Structure:—Slavery: Family-Industry: Sea Commerce.
   2. Financial Constitution: Revenue: The Liturgies.
3. The Economic and Financial Constitution of Rome.
   1. Economic Structure:—Slavery: Absence of Manufactures,
   2. Financial Constitution: Revenue: its sources and nature.
4. Summary, and Comparison of Classical and Modern Systems.
   1. Normal vs. abnormal governmental functions.
   2. Taxation in the modern sense, unknown.
   3. Absence of Public Credit.
5. The Mediaeval Economic and Financial Structure.
   1. Economic Structure.
      1. Production synonymous with Agriculture.
      2. Serf labor.
      3. Embryonic state of Exchange: a “natural” economy.
   2. Financial Constitution.
      1. The Feudal view of Finance.
      2. The importance of personal services.
      3. Rise of Regalian Rights.

 

LECTURE III
HISTORICAL DEVELOPMENT OF FINANCE.

1. Municipal Finance.
   1. The Rise of Cities: the Guild System.
   2. Increased cost of city government.
   3. Self-voted taxes arise; become permanent instead of occasional.
   4. Rise of Municipal Credit.
2. The Development of Financial Constitutionalism in England.
   1. The Feudal System in England (1066).
   2. The Exchequer system.
   3. Origin of the representative theory. Scutage, 1156; Personal property taxes, 1181; Provisions of Magna Carta,
   4. Complete establishment of the representative financial constitution. The Civil War: The Revolution of 1688.
   5. The Extension of commercial constitutionalism. In the U. S.; in France; on the continent generally.

 

PART I.

LECTURE IV.
THE FIELD OF PUBLIC EXPENDITURE.

1. Theories of the proper domain of State Expenditure.
   1. Their dependence on the prior theory the State’s nature.
   2. Spencer’s “Specialized Administration.”
      Expenditure warranted from this standpoint
   3. Adam Smith’s “Natural Liberty”.
      Expenditure warranted; Justice and Education.
   4. Mill’s modified laissez faire.
      Warranted expenditure, the “open door” for Socialism.
   5. Roscher’s Culturstaat
      Justifiable expenditure, a historic variable.
   6. Wagner’s State Socialism.
      Enlarged scope of expenditure.
   7. The Collectivist view.
      Public expenditure synonymous with Distribution.
2. Practical Solution of the Question.
   1. Assumption of the Status quo.
   2. Criteria of proposed concrete extensions of expenditure.
      Sir James Fitzjames Stephen’s three tests.
3. The Categories of Expenditure.
   1. Historical development.
   2. The Expenditure of modern States.
      1. Defence; 2. Justice; 3. Trade and Industry; 4. Social well-being.
4. The Growth of Expenditure.
   1. The universal increase.
   2. Causes—Nationality; Socialism.

 

LECTURE V.
EXPENDITURE IN THE UNITED STATES.

1. Expenditure in the U. S. General Survey.
   1. Distribution of expenditure, federal, state, local.
   2. Comparison of expenditure in U. S. with expenditure elsewhere.
2. Expenditure upon Administrative Bureaux.
   Distribution; Comparison; Tendency.
3. Defence.
   Distribution, Comparison, Tendency,— increase of naval expenditure.
4. Justice and Security.
   Distribution; Comparison; Tendency.
5. Industry, Commerce, Public Works.
   Distribution; Comparison; Tendency.
6. Education and Religion.
   Distribution; Comparison; Tendency,— industrial education, denominational schools.
7. Charity and Correction.
   Distribution; Comparison; Tendency.
8. Interest on Public Indebtedness.
   Distribution; Comparison; Tendency.

 

PART II.

LECTURE VI.
QUASI-ECONOMIC RECEIPTS.

1. The Classification of Revenues.
   1. Quasi-economic revenues and tax revenues.
      The case of Fees.
   2. Varying proportion of the two kinds of revenue.
      Growing prominence of quasi-economic revenue.
   3. Relegation (1) of the domanial revenue in the U. S.; (2) of the proposed State monopoly of land.
2. The Economic and Financial Aspect of Quasi-Economic Revenues.
   1. Priority of the economic question.
3. Definition and Classification of Monopolies.
   1. Definition
   2. Classification: legal, natural, and industrial monopolies.
      Their occasional coalescence.
   3. Extent of monopolies.
4. The Rise of Modern Monopolies.
   1. Early monopolies, mostly legal.
   2. Status of monopoly in 1800.
   3. Development of modern monopolies.
      1. Caused by city growth.
      2. Caused by industrial growth.
   4. Modification of the doctrine of laissez faire.
   5. Residual Competition.
5. The Regulation of Natural (urban) Monopolies.
   1. Classes of urban monopolies.
   2. Water supply, its character.
   3. Light supply, its character.
   4. Local transportation, its character.
   5. Miscellaneous urban monopolies.

 

LECTURE VII.
THE GREAT INDUSTRIAL MONOPOLIES. RAILROADS.

1. Origin and Development of Railroad Systems.
   1. The inception of the systems in various States.
   2. Tendency toward amalgamation.
      1. Linear consolidation.
      2. Parallel consolidation.
   3. Development of the Rate System.
      Tolls; charging “what the traffic will bear.”
   4. Development of Railroad legislation in U. S.
      1. Before 1870 and after.
      2. The Inter State Commerce Act; its provisions.
   5. Inference as to railroad legislation in the U. S.
2. Possible Relations of the State to Railroads.
   1. State ownership and operation of all roads.
   2. State ownership and operation of some
   3. State operation (as by lease) without ownership.
   4. State ownership not involving State operation.
   5. Regulation (as by Commissions).
3. State Ownership and Management.
   1. Feasibility viewed from standpoint of construction.
      1. 2. Economy.
         Adverse conclusions to State initiative.
   2. Transportation Rates.
      Prof Hadley’s evidence.
   3. Unjust Discrimination, local and personal.
      1. Natural origin of discrimination against certain localities.
      2. Discrimination against individuals.
   4. Cost of Operation.
      von Scheel’s argument. Leroy Beaulieu’s evidence.
   5. Necessity and advantage of pools.
   6. Alleged Analogy of State management of the Post Office.
      Differences in administration.
   7. Argument from Prussian Railroad management.
4. The Compromise Systems.
   1. Part ownership and operation.
      Experience of Belgium.
   2. State operation by lease.
   3. State ownership, and corporate operation.
5. State Regulation.
   1. Limitation of rates. Its inadequacy.
   2. Limitation of dividends. Its inadequacy and disadvantages.
   3. Special taxation, supervision and publicity.
6. State Control of the Telegraph System.
   1. Monopoly characteristics.
   2. State ownership and operation; in England; on the continent
   3. The transitional period in telegraphic apparatus.
7. Financial Conclusions.
   1. Governmental assumption of simple monopolies.
   2. Distinction between simple and complex monopolies.
   3. Revenue rule for State-owned monopolies.
   4. Revenue from other monopolies.

 

LECTURE VIII.
THE NATIONAL BANK SYSTEM OF THE U. S.

1. Previous Banking Systems of the U. S.
   1. The First U. S. Bank: 1791-1811.
   2. The Second U. S. Bank: 1816-1836.
   3. The State Bank System.
   4. Outcome of the State Bank System in New York and Mass.
2. Origin of the National Bank System.
   1. Financial conditions in 1863.
   2. Legislative Acts creating the National Banks.
3. Method of Organization.
   1. The Office of Comptroller of the Currency.
   2. Bond deposit and. note issue.
4. The Bank Note Circulation.
   1. Homogenous in form and security.
   2. Expansion and contraction provisions.
5. Reserve and Security Funds.
   1. Redemption fund.
   2. Reserve fund held against deposit liabilities.
   3. Priority of obligations in case of failure.
6. Miscellaneous Banking Regulations.
   1. Prohibited loans.
   2. Examinations and reports.
7. Earnings — Sources and Limits.
   1. Sources.
   2. Regulations governing profits.
8. Advantages and Defects of the System.
   1. Character of the currency furnished.
      1. Uniformity and security.
      2. Redemption
      3. Sensitiveness, in normal and abnormal conditions.
   2. Alleged unfair Discrimination.
      1. In favor of bond holders.
      2. Double interest.
9. The Future Bank Currency of the U. S.
   1. Approaching termination of the present system.
   2. Possible Substitutes.
      1. State Bank Currency.
      2. Exclusive federal issues of paper currency.
      3. The Baltimore Plan for continuing the present system, with a different basis for the note circulation.

 

LECTURE IX.
THE BANK OF ENGLAND.

1. The Founding of the Bank.
   1. Mixed motives of the Whigs in 1688.
   2. Previous banking; the goldsmiths.
   3. Low credit of the Government in 1694.
   4. Early political character of the Bank.
2. Original Constitution of the Bank.
   1. Government.
   2. Prohibitions.
   3. Privileges.
3. Present Constitution of the Bank (since 1844)
   1. 1. Government.
      2. Capital.
      3. Separation of the Banking and Issue Departments.
      4. Suspension of the Act of 1844.

1. The Position of the Bank in the Money Market.
   1. Sole depository of the reserve.
   2. Regulator of the reserve.
   3. Allayer of panics.

 

PART III.— TAX REVENUE.

LECTURE X.
TAXATION. ITS NATURE.

1. Taxation.
   1. Definition of a tax.
   2. “Subject” and “Object” of Taxation.
      “Source” of taxation.
   3. Economic Nature of Taxation.
      1. Non-productive, a cost.
      2. Fallacies on the subject
   4. Divisions of the Theory of Taxation.
      1. Incidence, Problems of.
      2. Equity, Problems of.
      3. Administration, Problems

 

LECTURE XI
THE INCIDENCE OF TAXATION.

1. Incidence.
   1. Definitions.
      Illustrations of the shifting of taxes.
2. Early Theories of Incidence.
   1. The Physiocratic theory.
      Its inadequacy.
   2. The Diffusion theory.
      Statements of Lord Mansfield, Thiers, Canard, Mr. D. A. Wells.
3. Incidence, as regards taxed products.
   1. Production under competitive conditions.
      Case I. — Inelastic Demand.
      Case II. — Elastic Demand. Collateral effects.
   2. Production under monopoly conditions.
   3. Actual conditions.
4. Incidence as regards classes of Income.
   1. Analogy of IV to III sup. cit.
   2. Income by usance.
   3. Income by process of exchange.
      1. Incidence in case of Rent.
      2. Incidence in case of Interest.
      3. Incidence in case of Profits and Salaries.
      4. Incidence in case of Wages.
   4. Qualifications necessary for the application of IV.

 

LECTURE XII
DISTRIBUTION OF TAXATION.

1. Definition of Distribution.
2. The Fiscal Theory. McCulloch’s statement.
3. The Politico-Social Theory.
4. The Benefit Theory.
   1. Outline of the benefit theory.
   2. Sphere of its application.
   3. Measure of benefits received.
      1. Importance of service rendered.
      2. Cost of service rendered,
   4. Inadequacy of the Benefit-theory.
5. The Ability Theory.
   1. Outline of the ability theory.
   2. The measure of ability: proportion or progression.
   3. Arguments for and against these tests.
      1. Degree of sacrifice involved.
      2. Socialistic tendency of progression.
      3. Unproductiveness of progression.
      4. Democratic nature of progression.
   4. Conclusions: General Superiority of the proportional system.
      1. In favor of the benefit-theory.
      2. In favor of the progressive rate for specific taxes.

 

LECTURE XIII.
THE TAX SYSTEM; ITS FORMS.

1. Single vs. Multiple Taxation.
   1. Illustrations of the difference.
   2. Early proposal of a single tax.
      Vauban: the Physiocrats and l’împot unique.
   3. Difficulties of the single system.
      1. Disproportionality.
      2. Necessity of disguising taxation.
      3. Structure of central and local government.
   4. Difficulties of a Single Tax on monopoly gains.
      1. Disclosure difficult.
      2. Revenue inadequate and inelastic.

 

LECTURE XIV.
THE SINGLE TAX THEORY.

Introduction: History of “Progress and Poverty.”

1. George’s Argument against private property in Land.
   1. The Moral Argument.
      The rightful basis of all property, — the labor basis.
      Criticism of this view. Case cited by Mr. George.
2. The Economic Argument.
   1. George’s theoretical catena; Criticism thereof.
   2. George’s historical argument.
      Criticism, economic and statistical.
      The increase of poverty, its implications.
3. Proposed Methods of Land Nationalization.
   1. Classification of Methods.
   2. Criticism of Confiscatory Methods.
   3. Criticism of Compensatory Methods.
      1. Difficulty in discounting rises in value.
      2. Recompense of undeserved losses.
      3. Effect on improvements.
      4. Increase of governmental functions.

 

LECTURE XV.
CLASSIFICATION OF TAXES.

1. Classification.
   1. Basis of Classification; legal, economic and miscellaneous.
   2. Direct and Indirect Taxes.
2. Comparison of Direct and Indirect Taxes.
   1. Merits and Defects of Direct Taxes.
      Defects; — do not reach the masses; slow automatic growth.
      Merits;— theoretical fairness where universal; political advantages.
   2. Merits and Defects of Indirect Taxes.
      Merits; — Productivity and relative popularity.
      Defects;— Inequality, hampered production, costliness of collection, and variableness.
3. Direct and Indirect Taxes in the U. S.
   1. Apportionment of revenue sources.
      Federal and State revenue.
   2. Causes of this Apportionment.
      1. Customs. 2. Internal Revenue. 3. Direct Taxes.

Note:
General Property [&] Corporation and Succession Taxes [->] Direct Taxes:  State Taxes.
Internal Revenue [&] Customs [->] Indirect Taxes:  Federal Taxes.
Income Taxes (direct) States and (formerly) Federal taxes.

 

LECTURE XVI.
THE GENERAL PROPERTY TAX.

1. Description of the Tax.
   1. Definition.
   2. Distinction between real and personal property.
2. Operation of the General Property Tax.
   1. Preliminary valuation of property.
      Law of situs: appeals.
   2. Final valuation of property.
   3. Collection of taxes.
3. Historical Origin of the General Property Tax.
   1. Colonial taxes.
   2. Wolcott’s Report in 1796. Summary.
   3. The Transition Period (1796-1861).
      Growth of wealth: increased amount evidenced by credits; increased import of personal services.
4. The Defects of the General Property Tax.
   1. False assumption of ability.
   2. Failure to reach personal estate.
   3. Administrative defects.
   4. Regressivity.
5. The Transformation of the General Property Tax.
   1. Preliminary conditions.
   2. Abolition of the State tax on realty.
   3. Abolition or reduction of Taxes on personal property by local governments.
   4. State taxes on corporations.
   5. Inheritance taxes.

 

LECTURE XVII.
THE INTERNAL REVENUE SYSTEM.

1. Origin of the Federal System of Internal Revenue.
   1. Earliest Excises.
      The Whiskey Tax; its repeal.
      Excises during the war of 1812.
   2. From 1862.
2. Taxes on Distilled Spirits.
   1. Previous Condition of Production and Consumption.
   2. Effects of the tax.
      The yield of various rates of taxation.
      Effect on production; on consumption.
      Frauds on the Revenue.
   3. Abatement and Reform of the Tax.
3. The Tax on Tobacco.
   1. General Features.
   2. Specific Features; steadiness; tendency to increase.
4. Canons of Excise Taxation.
   1. Taxation as a regulative moral agency.
   2. Productivity, how attained.
   3. Number and nature of articles taxed; raw materials.
   4. Distribution of the burden of excises.

 

LECTURE XVIII
CUSTOMS DUTIES IN THE UNITED STATES.

1. Origin of Customs.
   1. Historical origin.
   2. “Objects” of customs taxation.
      Transport dues; Export duties; Import duties.
2. Principles of Revenue and Protective Tariffs.
   1. Definition of protective and revenue Tariffs.
   2. Rates of duty.
   3. Kind and number of articles taxed.
   4. Offsets by excise and drawbacks.
   5. Bases of assessment.
      Ad valorem, specific and minimum duties.
   6. Indirect cost of a protective tariff.
3. The History of the Customs Policy of the U. S.
   1. Pre-Constitutional Customs Duties.
   2. Early Patristic Legislation, 1789-1808.
   3. Effect of the curtailment of foreign commerce
   4. Rise and Growth of Protection.
      1. Stimulation of domestic manufactures, 1808-1815.
      2. Geographical strength of the policy.
      3. Culmination of the movement in 1828.
   5. The Revenue Period, 1833-1860 [1842-6].
   6. The War Period. 1860-1865.
   7. Post Bellum Legislation.
      1. Repeal of internal revenue taxes.
      2. Repeal of duties on revenue articles.
      3. Protection as a permanent policy, 1890.
         The McKinley Bill: Reciprocity.
      4. The Wilson Bill, 1894.
         The House Bill; the Senate Bill.
   8. Revenue Yield of the Principal Schedules.
      1. Valuation of (total) dutiable imports.
      2. Most important Schedules, their yield.
      3. Other schedules.

 

LECTURE XIX.
INCOME TAXES.

1. Income Taxes; their history.
   1. Definition.
   2. History of the English Income Tax.
   3. History of the War Income Tax in U. S.
   4. History of the Income Tax of 1894.
2. Provisions of the Law of 1894.
   1. The two per cent. tax on net income.
   2. Corporation incomes and other incomes.
   3. Exemptions.
   4. Administrative machinery.
3. Advantages and Defects of Income Taxes in General.
   1. Equalization of Taxation.
      1. Its utility as a fiscal instrument.
   2. Defects.
      1. Failure to discriminate between different kinds of income.
      2. Failure to tax certain kinds of income.
4. Criticism of the Law of 1894.
   1. Popular (political) criticism.
   2. Effect of the tax on the distribution of taxation.
      1. Incidence of taxation in England.
         Jevons’s estimate. Evidence of Mr. Lowe.
      2. Incidence of Taxation in the United States.
      3. Conclusions as to the probable effect of the law.
   3. Defects of the Law.
      1. High exemption limit.
      2. Minor defects.
5. The Income Tax Decision.
   1. Explanation of the status of the case.
   2. Contentions of the appellant.
   3. Argument upon the contentions.
   4. Explanation of the Decision.
   5. Probable outcome of the Decision.

 

PART IV.
The Relation of Receipts and Expenditures.

LECTURE XX.
STATE HOARDING.

1. Time Relation of Receipts and Expenditures.
   1. Normal Equilibrium.
   2. Casual Inequality.
2. Surplus Financiering.
   1. Its Dangers under representative government.
3. The War Chest Policy.
   1. History.
      In antiquity: Example of Prussia in modern times.
   2. Criticism of the Policy.
      1. Financial inefficiency.
      2. Effect on industry.
      3. Effect on self-government.

 

LECTURE XXI.
PUBLIC DEBTS.

1. Historical Development of Public Credit.
   1. Definition of Public Credit.
   2. Its geographical extension.
   3. Nature of the security given.
   4. Time of the loans; rate of interest.
2. Characteristics of Modern Public Debts.
   1. Preconditions of public Indebtedness.
   2. Extent of public Indebtedness.
   3. Causes of the growth of public debts.
      1. Nationality. 2. Socialism.
3. The Effect of Public Debts.
   1. Primâ facie economic effects.
   2. Political Effects.
      In municipal politics.
   3. Social and industrial Effects.
   4. Summary of Evils of public Indebtedness.
4. Public Debts, when justifiable.
   1. General Principles.
      1. Fiscal Deficit. 2. War. 3. Public Works.

 

LECTURE XXII.
FEDERAL INDEBTEDNESS.

1. Colonial Period, 1607-1775.
   1. Variety in tax systems.
   2. Various media of exchange.
   3. Forced loans by issues of paper currency.
2. The Revolutionary Period, 1775-1789.
   1. Determinants of the financial policy of the war,
   2. Excessive issue of paper currency.
      Influence of this period upon the Constitution.
3. The Formative Period, 1789-1861.
   1. Federal Assumption of the Revolutionary Debt.
      Hamilton’s Report; its final adoption.
   2. Funding the Debt.
      The Sinking Fund Policy, its error.
   3. Payment of the Debt under Gallatin,
   4. Financial Policy of the War of 1812.
4. The Modern Period, 1861-1896.
   1. Financial Policy of the Civil War.
   2. Rapid Growth of the Debt of the United States.
   3. Analysis of the Debt in 1865.
   4. Process of reduction.

 

LECTURE XXIII.
LOCAL INDEBTEDNESS IN THE U. S.

1. Decline of the financial activity of the States.
   1. Statistical proof of the decline.
   2. Early financial prominence of the States.
   3. Failure of the States’ financial undertakings.
   4. Registry of the failure.
2. Local Indebtedness; its Causes.
   1. Subsidizing industrial enterprises.
   2. Increase in the expenses of city government.
   3. Municipal misgovernment.
      1. Defective municipal government.
      2. Legislative interference.
      3. Political complications with State and Federal politics.
      4. Underpayment of officials.
3. Regulation of Local Debts.
   1. Restrictions of floating debts.
   2. Time limit of debts.
   3. Sinking Funds and Repayment.

 

LECTURE XXIV.
BUDGETARY LEGISLATION.

1. The Budget.
   1. Definition
   2. Historical Origin.
      In England: in France: in the U. S.
2. The English Budget.
   1. The Estimates, their preparation.
   2. The Parliamentary Presentation.
   3. Execution and Verification.
   4. Merits and Defects.
3. The French Budget.
   1. Preparation
   2. Legislative Presentation.
   3. Execution and Verification.
   4. Defects of the French System.
4. The Federal Budget in the U. S.
   1. The Estimates.
   2. The Congressional Presentation.
      In the House of Representatives: in the Senate: Final Outcome.
   3. Execution and Verification.
   4. Defects of the System.

 

Collateral Reading.

Required:

Dunbar [Charles F.]; Theory and History of Banking.  [Chapters on the Theory and History of Banking, 1891]

Taussig [Frank William]; The Silver Situation in the United States [1893].

Recommended:

Adams [Henry Carter]; Public Debts [—An Essay in the Science of Finance (1890)].

Bastable [Charles Francis]; Public Finance [1892].

 

Authorities.

Alexander [E. Porter]:	Railway Practice [1887].
Bagehot [Walter]:	Lombard Street [1873].
Bastable: [Charles Francis]:	Commerce of Nations. [1893].
Bryce [James]:	American Commonwealth. [3rd ed., 1893] Volume I: The National Government—The State Governments [2nd ed., 1889] Volume II: The Party System—Public Opinion—Illustrations and Reflections—Social institutions
Buxton [Sydney]:	Finance and Politics. [1888] Volume I; Volume II
Cohn [Gustav]:	Nationaloekonomie. [Grundlegung der Nationalökonomie. Ein Lesebuch für Studirende, 1885]
Cooley [Thomas M.]:	Taxation. [A Treatise on the Law of Taxation, including the Law of Local Assessments, 2nd ed., 1886]
Dowell [Stephen]:	History of Taxation and Taxes. [A History of Taxation and Taxes in England, 2nd edition, 1888.  Volume 1: Taxation, From the Earliest Times to the Civil War; Volume 2: Taxation, From the Civil War to the Present Day; Volume 3: Direct Taxes and Stamp Duties; Volume 4: Taxes on Articles of Consumption.]
Ely [Richard Theodore]:	Taxation in American States and Cities [1888].
Enc. Brit.:	Art. On Finance by [J. E.]Thorold Rogers.
Eng. Cit. Series:	Farrer [Thomas Henry]: The State in its Relation to Trade [1883].
	Walpole [Spencer]: The Electorate and the Legislature [1881].
	Wilson, [Alexander Johnstone]: The National Budget [—The National Debt, Taxes and Rates (1882)].
George [Henry]:	Progress and Poverty [4th edition, 1881].
Von Halle [Ernst]:	Trusts or Industrial Combinations [in the United States (1895)].
Leroy Beaulieu [Paul]:	[Traité de la] Science des Finances [5th ed. Tome Premier: Des Revenus Publics (1892); Tome Second: Le Budget et le Crédit Public (1891).
Macaulay [Thomas Babington]:	History of England from the Accession of James the Second. [Volume I (1877); Volume II (1877)]
Mill [John Stuart]:	Political Economy [5th edition. Volume I (1893); Volume II (1893)]; On Liberty [People’s Edition, 1880].
Rae [John]:	Contemporary Socialism [2nd ed. (1891)].
Roscher [Wilhelm]:	Finanzwissenschaft. [System der Finanzwissenschaft. Ein Hand- und Lesebuch für Geschäftsmänner und Studierende. 3rd edition (1889)]
Schönberg [Gustav von]:	Handbuch der politischen Oekonomie. [Third edition. Volume 1, Volkswirtschaftslehre (1890); Volume 2, Volkswirtschaftslehre (1891); Volume 3, Finanzwissenschaft und Verwaltungslehre (1891)]
Seligman [Edwin Robert A.]:	Shifting and Incidence of Taxation [1892]: Progressive Taxation [1894]: Taxation of Corporations [Part I (1890); Part II (1890); Part III (1890)].
Shearman [Thomas Gaskell]:	Natural Taxation [—An Inquiry into the Practicability, Justice and Effects of a Scientific and Natural Method of Taxation (1895)].
Sumner [William Graham]:	The Financier and the Finances of the American Revolution. [Volume I, (1891); Volume II, (1891)]
Supreme Court Reports.
Taussig:	The Tariff History of the United States [1888]
Wilson [Woodrow]:	Congressional Government [—A Study in American Politics (1885)].
Wells [David Ames]:	Recent Economic Changes [and their Effect on the Production and Distribution of Wealth and the Well-Being of Society (1889)]. Practical Economics [—A Collection of Essays Respecting Certain of the Recent Economic Experiences of the United States (1888)].

 

Source: Columbia University Libraries. 308/Z/Box 475. Prof. [Winthrop More] Daniels. Syllabus of Lectures upon Public Finance, 1895-6. Princeton, N.J.: C. S. Robinson & Co., University Printers. “Gift of Prof. E. R. A. Seligman 12.23.39[?]”.

Image Source: Portrait of Winthrop More Daniels in Joshua Lawrence Chamberlain, ed., Universities and their Sons: History, Influence and Characteristics of American Universities, with biographical sketches and Portraits of Alumni and Recipients of Honorary Degrees, Vol. 2 (Boston, 1899) p. 71.