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Exam Questions Harvard

Harvard. Exams for the three courses in political economy. Laughlin and Taussig, 1882-1883

 

 

After Professor Charles Dunbar stepped down from his Harvard Deanship, he took sabbatical leave to go to Europe in 1882-83. Frank William Taussig was appointed instructor to help J. Laurence Laughlin cover the three course offerings for political economy that year. In Taussig’s course scrapbook in the Harvard archive, we find that he listed grades for 71 students in Political Economy 1 (1882-83), i.e., about half of the reported enrollment for that course. Thus we may presume that Laughlin and Taussig taught separate sections of the course with a common final examination.

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Course Announcements

Political Economy.

1.  Mill’s Principles of Political Economy. — Lectures on Banking and the Financial Legislation of the United States. Mon., Wed., Fri., at 9. Mr. Taussig and Dr. Laughlin .

2.  Cairnes’s Leading Principles of Political Economy. — History of Political Economy. – McKean’s Condensation of Carey’s Social Science. — Lectures. Mon., Wed., Fri., at 2. Dr. Laughlin.

As a preparation for Course 2, it is necessary to have passed satisfactorily in Course 1.

3.  Economic Effects of Land Tenures in England, Ireland, France, Germany, and Russia. Once a week, counting as a half-course. Dr. Laughlin.

SourceThe Harvard University Catalogue, 1882-83, pp. 89-90.

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Course Enrollments

1.  Mill’s Principles of Political Economy. — Lectures. Dr. Laughlin and Mr. Taussig.

Total 155: 1 Graduate, 22 Seniors, 113 Juniors, 13 Sophomores, 6 Others. 3 hours/week.

2.  Cairnes’s Leading Principles of Political Economy. — History of Political Economy. — McKean’s Condensation of Carey’s Social Science. — Lectures. Dr. Laughlin. 3 hours/week.

Total 35: 2 Graduates, 24 Seniors, 8 Juniors, 1 Other.

3.  Studies in Land Tenures of England, Ireland, and France. — Theses. Dr. Laughlin. 1 hour/week.

Total 7: 1 Graduate, 6 Seniors.

Source: Harvard University. Report of the President of Harvard College, 1882-1883, p. 66.

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Course Examinations

POLITICAL ECONOMY 1.
Mid-year 1882-83

I.
(Answer briefly all of the following.)

  1. What distinction does Mill draw between productive and unproductive labor? Discuss the value of this distinction. Distinguish between productive and unproductive consumption.
  2. What is the distinction between fixed and circulating capital? Is money part of the fixed or of the circulating capital of a country? Why?
  3. What are the classes among whom the produce is divided? Are these classes necessarily or usually represented in as many different sets of persons? How could you classify the peasant proprietor?
  4. Of what commodities are the values governed by the law of cost of production? Explain the process by which that law operates.
  5. “Rent does not enter into the cost of production of agricultural produce.” Explain.
  6. What regulates the value of an inconvertible paper currency? What cause it to depreciate? Discuss briefly the results of depreciation.
  7. Arrange the following items on the proper sides of the account:—

Circulation

315.0

Due to Bans

259.9

Legal Tender Notes

63.2

Loans

1,243.2

Bond for circulation

357.6

Due from Banks

198.9

Deposits

1,134.9

Specie

102.9

Compute just how much circulation is permitted by our laws; and give in figures both the (1) reserve required at 25%, and the (2) difference between the actual and required reserve, on the basis of the above account.

  1. Compare the plans of our National Bank system with those of the Bank of England and the Imperial Bank of Germany in regard to the security of note-issues.

II.
(Answer more fully three of the following.)

  1. What are the constituent elements of what Mill calls “profits”? Explain what is meant in common language by the word “profits,” and discuss the nature of profits in this sense.
  2. “The laws of the production of wealth partake of the nature of physical truths…It is not so with the distribution of wealth. That is a matter of human institution solely.” Explain the distinction, and show its connection with the subjects of communism and socialism.
  3. Mention the methods by which it is attempted to keep gold and silver concurrently in circulation. Explain why “a double standard is alternately a single standard.” Does this tend to be the case now in the United States?
  4. Distinguish between real and proportional wages, and illustrate the distinction. In what sense is the word wages used when it is said that the profits depend on wages, rising as wages fall, and falling as wages rise?
  5. It is not a difference in the absolute cost of production which determines the international cost of exchange, but a difference in the comparative” Explain this proposition, and apply it to the trade between the United States and European countries. Is the trade between tropical and temperate countries based, in the main, on a difference of absolute or of comparative cost?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2. Bound volume Examination Papers, 1881-83. Papers Set for Mid-Year Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (February, 1883), pp. 8-10.

 

POLITICAL ECONOMY 1.
Year-end 1882-1883

I.
(Take all of this group.)

  1. Explain what is meant by a bill of exchange. What causes bills on a foreign country to be at a premium or discount? Show in what way the premium (or discount) is prevented from going beyond a certain point.
  2. Is there any connection between the rate of interest and the abundance or scarcity of money? Explain and illustrate the following: “The rate of interest determines the price of land and of securities.”
  3. Describe the three different kinds of cooperation, and say something of the success attained by each. What are the two classes of distributive cooperation, and wherein do they differ?
  4. Show under what circumstances the increase of capital brings about the tendency of profits to fall. What influences counteract this tendency?
  5. Explain what is meant by the rapidity of circulation of money. What is the effect of great rapidity of circulation on prices and on the value of money? What is the effect of the use of credit? Mention the more important methods in which credit is used as a substitute for money.

II.
(Omit one of this group.)

  1. Discuss the effect of the introduction of a new article of export from a given country on the course of the foreign exchanges in that country, on the flow of specie, and on the terms of international trade (i.e. on international values).
  2. What are the causes which enable one country to undersell another? Do low wages, or a low cost of labor, form one of those causes?
  3. Discuss the immediate and the ultimate effects on rents of the introduction of agricultural improvements. Do those ultimate effects which Mill describes necessarily take place?
  4. What is the immediate and what the ultimate incidence of a tax on houses? Show in what manner the incidence of a tax on building-ground differs, according as the tax is specific (so much on the unit of surface), or rated (so much on the value).

III.
(Omit one of this group.)

  1. Describe the situation which caused the banks in the United States to suspend specie payments in 1861.
  2. What is the difference between bonds and Treasury notes? Name and explain the different kinds of bonds issued during the war.
  3. Explain the causes which made possible the great sales of five-twenty bonds in 1863.
  4. What arguments were advanced for the continuance of the National Bank System in 1882?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2. Bound volume Examination Papers, 1881-83. Papers Set for Final Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1883), pp. 7-8.

 

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Course Examinations

POLITICAL ECONOMY 2.
Mid-year 1882-83

  1. Give a careful statement of Mr. Cairnes’s theory of market and normal value.
  2. How far is it right to suppose that the competition of (1) capital and (2) of labor is effective?
  3. Explain and discuss the statement that “the wages-fund expands as the supply of labor contracts, and contracts as the supply expands.”
  4. Agricultural products in England are as dear as one hundred years ago; in the meantime there has been extraordinary industrial progress. What conclusion is to be drawn as to the increase of wages and profits from the first fact, and who has ultimately gained by the second?
  5. Mill thinks that, although “the great efficiency of English labor is the chief cause why the precious metals are obtained at less cost by England,” the “somewhat higher range of general prices in England” is accounted for by the foreign demand, and the unbulky character of her commodities.
    What different explanation is offered by Mr. Cairnes?
  6. Examine the following:—
    “It seems to me that protection is absolutely essential to the encouragement of capital, and equally necessary for the protection of the American laborer….He must have good food, enough of it, good clothing, school-houses for his children, comforts for his home, and a fair chance to improve his condition. To this end I would protect him against competition with the half-paid laborers of European countries.”— Cong. Globe.
  7. If there should be a considerable falling off in the foreign demand for the products of one group of industries, such as our bread-stuffs, how would that affect wages in this country?
  8. What is the argument against the theory that the Bank of England brought about resumption of specie payments in England in 1821 by a contraction of its note-issues?
  9. In what period in the history of economic doctrines would you place the writer of the following passage?
    “The strength of a community declines with increase in the rate of interest. That increase results from efflux of the precious metals.” Explain.
  10. Comment on the main doctrines held by Cantillon and Storch.

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2. Bound volume Examination Papers, 1881-83. Papers Set for Mid-Year Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (February, 1883), pp. 10-11.

 

POLITICAL ECONOMY 2.
Year-end 1882-1883

[Do not change the order of the questions.]

  1. Examine the following doctrine:—
    “If invention and improvement still go on, the efficiency of labor will be further increased, and the amount of labor and capital necessary to produce a further increased, and the amount of labor and capital necessary to produce a given result further diminished. The same causes will lead to the utilization of this new gain in productive power for the production of more wealth; the margin of cultivation will be again extended, and rent will increase, both in proportion and amount, without any increase in wages and interest. And so,…will…rent constantly increase, though population should remain stationary.”—Henry George, Progress and Poverty (p. 226).
  2. What is meant by the “comparative costs of production,” on which international values are said to depend, and how is that dependence to be reconciled with the fact that any given sale of goods is found to be an independent transaction, determined by the price of the commodity?
  3. How does the doctrine of reciprocal demand between different industries apply to the argument in favor of a diversity of employments in a new country, as laid down by Hamilton in his Report on Manufactures?
  4. Of the economic doctrines generally accepted to-day which would you consider as having originated with Adam Smith?
  5. Discuss the following words of Mr. Carey:—
    “From 1810 to 1815 mills and furnaces were built, but with the return of peace, their owners…were everywhere ruined…From 1828 to 1834, such establishments were again erected, and the metallic treasures of the earth were being everywhere developed; but, as before, the protective system was again abandoned, with ruin to the manufacturers.” (Vol. II, p. 224.)
  6. Explain the relation, in Mr. Carey’s system, between “wealth,” “utility,” “value,” and “capital.” State clearly the “harmony of interests” between labor and capital, and the connection of this with the wages question.
  7. Point out Mr. Carey’s objections to the doctrine of Malthus. How far does his position on this question affect his acceptance of Ricardo’s law of rent?
  8. Discuss the following statement:—
    “If such [a] league be formed on a permanent basis between a considerable number of important commercial countries, even though it does not embrace all countries, the relative value of gold and silver will be kept close to the mint ratio so established.”—A.Walker, Political Economy (p. 408).
  9. Examine this position:—
    “The rent of mines is not governed wholly by the economic law of rent which, as stated, has reference to the native and indestructible powers of the soil….By the very nature of such deposits [i.e. in mines], the enjoyment of mining privileges diminishes the sum of the mineral in existence. The mine may be ‘worked out’ in ten years or in twenty….The rent must be increased sufficiently to compensate for the ultimate exhaustion of the deposits: the destruction of the value of the estate.”
  10. Describe the form in which Germany actually received the payment of the indemnity from France.

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2. Bound volume Examination Papers, 1881-83. Papers Set for Final Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1883), pp. 8-9.

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Course Examinations

POLITICAL ECONOMY 3.
Mid-year 1882-83

  1. What is the usual legal conception of property in the increased value of land? How far is this justified?
  2. In the claims of tenants for compensation for unexhausted improvements what weight do you give to the argument of landlords that legislation on this subject would be an interference with freedom of contract?
  3. What was the Agricultural Holdings Act of 1875? What were its results?
  4. Discuss the present length of leases in England, and compare with that of a century ago. Are there any political causes affecting the question?
  5. What is the aim of the Registration of Titles Act of 1875? What is the system of transferring property in England now actually in use?
  6. State some of the effects of the practice of entails on the application of capital to land. Point out how this question has been discussed in its relation to wages.
  7. What change has been going on in the character of English agriculture within the last thirty years? What influences do you attribute to American competition in this matter?
  8. In the depression of English agricultural interests, which class connected with the land seems to have suffered most?
  9. What has been the relation of the agricultural laborer to the land, and how far has it been possible for him to improve his position?
  10. It is said that farmers can use their capital more profitably in farming hired land than in sinking it in the purchase of the soil. What do you think on the advantages to the cultivators of owning the land in England?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2. Bound volume Examination Papers, 1881-83. Papers Set for Mid-Year Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (February, 1883), pp. 11-12.

 

POLITICAL ECONOMY 3.
Year-end 1882-1883

  1. State what you believe to be the most important effects of the Repeal of the Corn Laws upon agriculture and the present system of land-holding in England.
  2. It has been asserted that “a peasant population, raising their own wages from the soil, and consuming them in kind, are universally acted upon very feebly by internal checks, or by motives disposing them to restraint. The consequence is, that unless some external cause, quite independent of their will, forces such peasant cultivators to slacken their rate of increase, they will, in a limited territory, very rapidly approach a state of want and penury, and will be stopped at last only by the physical impossibility of procuring subsistence.” What testimony on this question is offered by the experience of France and Germany?
  3. How does absenteeism (1) affect the production of agricultural wealth? (2) Does it modify the laws of distribution?
  4. Give an explanation of the fact that in Ireland custom forces the tenant, not the landlord, to carry out the improvements on the soil. How far does this affect the question of compensation for unexhausted improvements.
  5. To what do you ascribe the “land-hunger” and rack-rents in Ireland? Why have manufactures not aided the agricultural classes, as they have in the north of England?
  6. What were the “Bright clauses” of the Irish Land Act of 1870, and their results? Describe briefly the provisions of the Irish Land Act of 1881.
  7. In view of new legislation in favor of English tenants, it is stated by the journals that to-day the Irish stands on a better legal footing than the English tenant. If this is true, point out the different advantages by the former.
  8. Under the old régime in France it is clear not only that there were many peasant proprietors, but also that agriculture was not flourishing. What other economic forces were at work, and what causes would you assign as the ones unfavorable to agriculture?
  9. What were the facts as to the increase of population (1) under the old régime, and (2) after the extension of small holdings? What light does this throw on the Irish land question?
  10. Discuss the evils supposed to arise from the French law of equal partition of property among the heirs at the death of the owner.
  11. Describe briefly the reforms of Stein and Hardenberg in the land legislation of Germany. What parallel is drawn between this plan and the course followed by France?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2. Bound volume Examination Papers, 1881-83. Papers Set for Final Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1883), pp. 9-10.

Image Source:  Harvard Library, Hollis Images. James Laurence Laughlin (left) and Frank W. Taussig (right).

Categories
Exam Questions Harvard

Harvard. Examinations for both political economy courses. Dunbar and Laughlin, 1881-1882

 

Course offerings in economics at Harvard were pretty meager at the start of the 1880s. Two instructors covered two courses in 1881-82. Professor Charles Dunbar was serving his last year as Dean which probably explains why a young Ph.D., J. L. Laughlin (Harvard PhD, 1876), was even needed to share the burden of teaching the large introductory course.

Note: the mid-year examinations appeared to have been missed during my last visit to the Harvard archives, so  I’ll need to try to fill that gap during a future visit.

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Course Announcement

POLITICAL ECONOMY.
ELECTIVE COURSES.

1. Mill’s Principles of Political Economy.—Financial Legislation of the United States.—Lectures. Three times a week. Professor Dunbar and Dr. Laughlin.

Course 1 may be taken twice a week, if notice to that effect is given in advаnсе.

2. Cairnes’s Leading Principles of Political Economy.—Giffen’s Essays in Finance.—Lectures. Three times a week. Professor Dunbar.

As a preparation for Course 2, it is necessary to have passed satisfactorily in Course 1 (three hours).

Source: Harvard University Catalogue, 1881-82, p. 84.

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Course Enrollments

Political Econ. 1. Mill’s Principles of Political Economy.— Lectures on Banking and the Financial Legislation of the United States (3 hours, 2 sections). Prof. Dunbar and Dr. Laughlin.

Total 147: 23 Seniors, 97 Juniors, 17 Sophomores, 2 Freshmen, 8 Others.

Political Econ. 2. Cairnes’s Leading Principles of Political Economy.— Giffen’s Essays in Finance.— Lectures and Theses. (3 hours, 1 section). Prof. Dunbar.

Total 32: 2 Graduates, 21 Seniors 9 Juniors.

Source: Harvard University. Report of the President of Harvard College, 1881-82, p. 5.

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Course Examination

POLITICAL ECONOMY 1.
Year-end 1881-1882

(Omit one question from each group.)

I.

  1. What conclusion is reached by Mr. Mill respecting the objections to the use of labor-saving machinery?
  2. Are railway shares, stocks of wine, wheat, munitions of war, and land considered capital, or not?
  3. Explain fully why it is that capitalists cannot compensate themselves for a general high cost of labor through any action on values and prices.
  4. What determines the rate of interest on loanable funds? Is the “current [or ordinary] rate of interest the measure of the relative abundance or scarcity of capital”?

II.

  1. How is it that some agricultural capital pays rent, even if resort is not had to different grades of land?
  2. What connection exists between the rate of wages in any country and the productiveness of its soil?
  3. Explain what is meant by the tendency of profits to a minimum, and by the stationary state.
  4. In what cases would duties on imported commodities fall on the producers?

III.

  1. What are the reasons for the change in the normal values of manufactured and of agricultural commodities, respectively, during the progress of society?
  2. In trying to explain high prices (as at the present time), point out what other factor than quantity of money is to be taken into account. As a matter of fact, how does the importation of specie enter the channels of trade and affect prices?
  3. Why is it necessary to make any different statements of the laws of value for foreign than for domestic products? What is the law of international value?
  4. In what way are gold and silver distributed among the different trading countries? Between different parts of the same country?

IV.

  1. How did depreciation of the currency facilitate the sale of five-twenty bonds in 1863-64?
  2. What advantage did the government obtain by giving the five-twenty form to so many of its bonds?
  3. What provision was made in the original National Bank Act as to reserves to protect circulation and deposits, and what reserves are now required by law
  4. In what cases can payments be legally made in greenbacks and in national bank-notes respectively?

 

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1914, Box 2, Bound Volume Examination Papers, 1881-83. Annual Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1882), pp. 7-8.

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Course Examination

POLITICAL ECONOMY 2.
Year-end 1881-1882

In answering the questions do not change their order.

  1. What is the reason for Adam Smith’s proposition that “the price of corn, in the progress of society, reaches a maximum, beyond which it cannot advance”? Can you work out the same result by a different course of reasoning from that given by Cairnes?
  2. Explain the statement that “the high scale of industrial remuneration in America, instead of being evidence of a high cost of production in that country, is distinctly evidence of a low cost of production.”
  3. If the common saying that “the value of gold is the same all the world over” has no foundation, how does a supply of new gold distribute itself over all countries and over all commodities in each country?
  4. Malthus, Ricardo, Mill, Cairnes:—State their relation to each other in the development of economic science.
  5. How did the payment of the French indemnity to Germany affect the economic condition of Austria and of the United States?
  6. In a speech made in April, 1876, Senator Sherman says that, after the introduction of the gold standard by Germany in 1873 and the limitation of the coinage of silver by the Latin Union,—
    “A struggle for the possession of gold at once arose between all the great nations, because everybody could see that if $3,200,000,000 of silver coin were demonetized, and $3,500,000,000 of gold coin made the sole standard, it would enormously add to the value of gold, and the Bank of France, the Bank of England and the Imperial Bank of Germany at once commenced grasping for gold in whatever form. Therefore, what we have observed recently is not so much a fall of silver as it is a rise of gold, the inevitable effect of a fear of the demonetization of silver.”
    In what form would the process of “grasping for gold” manifest itself, and how do the facts bear out the above statement?
  7. To what extent is it, in the long run, a misfortune for England that her agriculture should be in part superceded by supplies of cheap food poured in from America?
  8. State your views as to the economic significance and probable permanence of the present excess of exports from the United States.
  9. How is the supposed accumulation of capital by England in the period from 1875 to 1881 to be reconciled.
    (1), with the great depression of business for most of the time;
    (2), with the remarkable excess of imports?
  10. Examine the reasoning of the following extract:—
    “About $11,000,000 is now spent in the United States annually for new ships, wooden and iron, and about $2,000,000 more for the repair of old ones….Under a policy of government encouragement, expenditures for iron and wooden ships would be increased at least to $40,000,000 a year….[and] the expenditures for American labor and supplies, in operating the ships, would be increased by $10,000,000 or $15,000,000, perhaps considerably more. That is to say, there would then be expended in the United States an immense sum of money not now expended, which might be as large as $40,000,000, which would diffuse itself throughout the community, and bless and quicken every department of human industry. Best of all, the money, thus spent, would be principally obtained from the foreigner. It would come from the earnings of the ships, which, in the export trade at least, are paid by consumers in foreign lands. In the import trade the money is paid by consumers here and is carried away from the country. The larger part of the money, therefore, would be a pure gain to the United States…These lines would save to the country at least one half of the $50,000,000 of freight money now paid on imported goods, and they would earn at least one half of the large sum paid by foreign nations on the goods exported from this country. Then, they would give encouragement to tens thousands more of American citizens on land and sea.”

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1914, Box 2, Bound Volume Examination Papers, 1881-83. Annual Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1882), pp. 8-9.

Image Source:  Harvard Library, Hollis Images. Charles F. Dunbar (left) and James Laurence Laughlin (right).

Categories
Exam Questions Harvard

Harvard. Exams for Elementary, Full, and Advanced Political Economy. 1880-81

 

This post reaches back to the early years of Harvard’s (then) department of political economy. A grand total of three courses were offered in 1880-81. The textbooks of choice were Mill’s Principles of Political Economy and Cairnes’ Leading Principles of Political Economy. Some links to the chapters/sections cited are included below.

1879-80 Harvard Exams in Political Economy

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Harvard College Courses
POLITICAL ECONOMY.

  1. The Elements of Political Economy.—Financial Legislation of the United States.—Lectures. Twice a week. Professor Dunbar and Dr. Laughlin.
    Course 1 is intended for students who desire to pursue the study for only one year.
  2. Mill’s Principles of Political Economy. —Financial Legislation of the United States. —Lectures. Three times a week. Professor Dunbar and Dr. Laughlin.
    Courses 1 and 2 cannot be taken together, nor can either be taken by any student who has taken the other.
  3. Cairnes’s Leading Principles of Political Economy. —McLeod’s Elements of Banking. —Bastiat’s Harmonies Economiques. —Lectures. Three times a week. Professor Dunbar.
    Students proposing to take course 3 must first consult the Instructor.

Source: The Harvard University Catalogue, 1880-81, pp. 82-83.

Harvard Graduate Department
POLITICAL ECONOMY.

  1. Public Finance. —Leroy-Beaulieu’s Science des Finances. Once a week. Professor Dunbar.

Source: The Harvard University Catalogue, 1880-81, pp. 192. [apparently not taught in 1880-81 according to the Annual Report of the President of Harvard College, 1880-81, p. 62.]

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Political Economy Course Enrollments
1880-1881

No. of Sec-tions Hours per week for stu-dents Hours per week for instruct-tors
Prof. Dunbar and Dr. Laughlin Political Econ. 1 Elementary Course.—Mill’s Principles of Political Economy.—Lectures 22 Total:
7 Seniors,
4 Juniors,
9 Sophomores,
2 Others.
1 2 2
Prof. Dunbar and Dr. Laughlin Political Econ. 2 Full Course.—Mill’s Principles of Political Economy.—Lectures on Currency and the Financial Legislation of the United States 100 Total:
13 Seniors,
73 Juniors,
13 Sophomores,
1 Other.
2 3 6
Prof. Dunbar Political Econ. 3 Advanced Course.—Cairnes’s Leading Principles of Political Economy.—Giffen’s Essays in Finance.—Lectures 12 Total:
1 Graduate,
8 Seniors,
2 Juniors,
1 Law.
1 3 3

Source: Harvard University. Annual Report of the President of Harvard College, 1880-1881, p. 49.

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The John Stuart Mill’s Principles:
textbook of Harvard choice

Most likely edition of John Stuart Mill’s Principles of Political Economy used at Harvard was a New York reprint of the London 5th edition. It corresponds to the pages given for the mid-year exam in Political Economy 1 from 1879-80.

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Final Examinations
Mid-Year and End-Year, 1880-1881

POLITICAL ECONOMY 1.
[Mid-Year Examination, 1880-81 with references to J. S. Mill]

  1. Explain the following terms: Real Wages, Fixed Capital, Allowance System, Margin of Cultivation, Price, Demand, Medium of Exchange, Seignorage, Value of Money, and Bill of Exchange.
  2. In what way would a general demand for luxuries effect productive laborers, and the wealth of the community? ( I., ch. v, §5)
  3. State the laws which regulate the permanent and temporary values of agricultural products.
  4. How far does the law of Demand and Supply govern the value of money? ( III., ch. ii., §5.)
  5. Explain the following statement: “It is true, the absolute wages paid have no effect upon values; but neither has the absolute quantity of labor.” ( III., ch. iv., §3.)
  6. Show how Gresham’s Law is illustrated by the history of the currency in the United States between 1834-1873.
  7. What are the different forms assumed by credit? What are their relative effects on prices? ( III., chs. xi. and xii.)
  8. State the doctrine of Comparative Cost. What is the advantage of international trade to the production of a country?
  9. What determines the value of imported commodities?
  10. Describe the issue of assignats, and point out the mistakes committed.

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2, Papers Set for Mid-year Examinations in Philosophy, Political Economy, History, Fine Arts, and Music in Harvard College (February, 1881) included in the bound volume Examination Papers, 1880-81, pp. 14-15.

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POLITICAL ECONOMY 1.
[Final, Year-End Examination, 1880-81, with references to J. S. Mill]

  1. Define Supply, Value of Money, Productive Consumption, Cost of Production, Cost of Labor, Exchange Value, Law of Production from Land, Rate of Profit, Capital, and Gresham’s Law.
  2. Explain fully whether you consider that United States bonds are capital or not. (Book I., ch. 4, §3.)
  3. (1) What is the lowest rate of profit which can permanently exist?
    (2) Why is this minimum variable? (Book II., ch. xv., §2.)
  4. (1) What connection exists between the Price of agricultural products and the amount of Rent paid?
    (2) Can rent affect the Price?
  5. Explain carefully the following:—
    “The average value of gold is made to conform to its natural value in the same manner as the values of other things are made to conform to their natural value.” (Book III., [ch. ix] §2.)
  6. State the conditions under which International Trade can permanently exist. (Book III., ch xvii.) What will be the ultimate effect of a large movement of foreign gold upon Prices, Imports, and Exports in the receiving country?
  7. How does the general rate of interest determine the selling price of stocks and land? (Book III., ch. xxiii., §5.)
  8. Point out carefully the connection of money wages with the productive power of the land cultivated by a community. (Book III., ch. xxvi. §1.)
  9. What is the general effect of the progress of society on the land-owner, the capitalist, and the laborer? (Book IV., chs. ii., iii., iv.)
  10. On whom does a tax of a fixed proportion of agricultural produce fall? (Book V., ch. iv., §3.)
  11. Describe the leading provisions of the national bank system, as they now exist, in regard to (1) the security for notes; (2) reserves; redemption of notes; (3) aggregate limit of circulation; (4) gold banks; (5) and state the important changes made since the passage of the original act. (6) Compare our system with that of the Bank of England.
  12. State the provisions of the Resumption Act, and the circumstances which made it easy to resume specie payment at the date fixed upon

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2, Papers Set for Annual Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1881) included in the bound volume Examination Papers, 1880-81, pp. 10-11.

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POLITICAL ECONOMY 2.
[Mid-Year Examination, 1880-81, with references to J. S. Mill]

In answering the Questions, do not change their order.
In all cases give the reasons for your answer.

  1. Is an actor to be classed as a productive laborer? The inventor of a machine? A confectioner?
  2. If in a country like this a large amount of capital becomes fixed in the building of railroads, what effect will this change taken by itself have upon the laboring class, supposing the capital to be (1) domestic, or (2) borrowed wholly or in part from abroad?
  3. How do banks help forward the tendency of profits to equivalent rates in different employments?
  4. To what extent is it true that “wages (meaning money wages) vary with the price of food, rising when it rises, and falling when it falls.” [Book II., ch. xi. §2]
  5. What determines
    1. the general rate of wages in a country,
    2. the relative rates of wages in different employments?
  6. How is it shown that “rent does not really form any part of the expenses of production or of the advances of the capitalist?” [Book II., ch. xvi. §6]
  7. How are we to reconcile these two passages from Book III., ch. IV.:—
    1. High general profits cannot any more than high general wages, be a cause of high values.” (§4.)
    2. Every rise or fall of general profits will have an effect on values.” (§5.)
  8. What is the system upon which the small silver currency of the United States is coined and issued?
  9. What will be the effect if the circulating medium of a country is increased beyond its natural amount,
    1. when the medium is coin?
    2. when it is coin and convertible paper?
    3. when it is inconvertible paper?
  10. Why does the increase or diminution of the reserve of a bank affect its ability to lend?
  11. What is the plan of the National Banks of the United States and of the Bank of England respectively, as regards (1) the ultimate redemption, and (2) the convertibility, of their notes?
  12. Arrange the following resources and liabilities of the Bank of England in the proper form, separating the Issue and the Banking Departments:—
Notes Issued £41.5 Government Securities £14.2
Other Deposits 27.9 Reserve 9.4
Other Securities (Loans) 27.9 Public Deposits 5.6
Coin and Bullion 26.5 Rest 3.2
Government Debt, &c. 15.0 Seven-day Bills 0.3
Capital 14.5
  1. Having arranged the account, show what changes would be made in it, if the Bank increased its loans by 3 millions, and sold 1 million of government securities, and if depositors at the same time withdrew 2 millions to be sent abroad.

**If you have time, state any difficulty which you find in Ricardo’s doctrine of rent.**

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2, Papers Set for Mid-year Examinations in Philosophy, Political Economy, History, Fine Arts, and Music in Harvard College (February, 1881) included in the bound volume Examination Papers, 1880-81, pp. 15-16.

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POLITICAL ECONOMY 2.
[Final, Year-End Examination, 1880-81, with a link to J. S. Mill]

One question may be omitted from each of the four groups.

I.

  1. Show carefully the distinction between wages, cost of labor and cost of production.
  2. Why is it that a potential change of the supply of other commodities is enough to make their value conform to any change in their cost of production, but that in the case of gold and silver the change of supply must be actual?
  3. What is the error involved in the assumption frequently made by writers and public speakers, that the currency of a country ought to increase in like ratio with its wealth and population?
  4. What effect does the great durability of gold and silver have upon the value of money?

II.

  1. Explain the incidence of taxes laid on wages.
  2. Explain what effect, if any, will be produced on the price of corn by,
    1. a tax upon rent;
    2. a tithe;
    3. a tax of so much per acre, irrespective of value;
    4. a tax of so much per bushel.
  3. What is the meaning of the statement that “it is not a difference in the absolute cost of production, which determines the interchange [of commodities between countries], but a difference in the comparative cost.” [Book III., ch. xvii, §2.]
  4. Why does cost of production fail to determine the value of commodities brought from a foreign country? Does it also fail in the case of commodities brought from distant parts of the same country?

III.

  1. What effect is produced upon rents, profits and wages, respectively, in a country where population is stationary and capital advancing, like France?
  2. Explain the doctrine of the tendency of profits to a minimum, the cause of that tendency, and the circumstances which counteract it.

IV.

  1. Explain the changes in the amount of greenbacks outstanding, beginning at February, 1868.
  2. Describe the provisions of the national bank system, as they now exist, and compare them with those of the Bank of England, in regard to (1) the security of notes; (2) reserves; (3) redemption of notes; (4) aggregate limit of circulation; (5) gold banks.
  3. State the provisions of the Resumption Act, and the circumstances which made it easy to resume specie payment at the date fixed upon.
  4. What was the difference between the five-twenty bonds and the six per cents. of 1881 (Act of July, 1861)? Why was it good policy for the government to issue such a large proportion of the former?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2, Papers Set for Annual Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1881) included in the bound volume Examination Papers, 1880-81, pp. 11-12.

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POLITICAL ECONOMY 3.
[Mid-Year Examination, 1880-81, with references to Cairnes, et al.]

Do not change the order of the questions.

  1. “No article is dearer than another simply in virtue of the skill bestowed upon it.” What then is the relation of skill to value? [J. E. Cairnes. Some Leading Principles of Political Economy Newly Expounded (1874), p. 76]
  2. What is the argument for the proposition that the price of corn, in the progress of society, reaches a maximum, beyond which it cannot advance?
  3. When a depreciation of currency is in progress, what will be the difference in the effect on the prices of manufactured goods, vegetable products, and animal products respectively?
  4. What is meant by saying that a nation is interested, not in having its prices high or low, but in having its gold cheap?
  5. Explain the statement that “the high scale of industrial remuneration in America, instead of being evidence of a high cost of production in that country, is distinctly evidence of a low cost of production.” [J. E. Cairnes. Some Leading Principles of Political Economy Newly Expounded (1874), p. 385]
  6. This being shown, “how is the fact to be explained, that the people of the United States are unable to compete in neutral markets in the sale of certain imported wares, with England and other European countries?” [J. E. Cairnes.Some Leading Principles of Political Economy Newly Expounded (1874), p. 386]
  7. “The laws of political economy express tendencies.” Examine this statement, and show the meaning of the word “law” as used in economic discussion.
  8. Examine the following statement of the doctrine of rent and of the deductions therefrom:—
    “Ricardo taught that cultivation begins, when land is first open to occupation and population is scarce, with the richest soils, and thence of necessity proceeds, with the growth of numbers, steadily to poorer and still poorer, until at last all proportion must cease, and famine and death relieve the overburdened earth; the end being only postponed, as assassination is said to temper despotism, by a graduated massacre, in the forms of war, pestilence and famine, which anticipate by performing the catastrophe in detail; that is, if people did not die prematurely in series adjusted to the overruling law they would have to perish at last in the lump.—Elder’s Memoir of Carey, p. 14.
  9. Examine the position taken in the following extract from an argument in disproof of the Malthusian Theory:—
    “The question of fact into which this issue resolves itself is not in what stage of population is most subsistence produced? But in what stage of population is there exhibited the greatest power of producing wealth? For the power of producing wealth in any form is the power of producing subsistence—and the consumption of wealth in any form, or of wealth producing power, is equivalent to the consumption of subsistence….Thus the power of any population to produce the necessaries of life is not to be measured by the necessaries of life actually produced, but by the expenditure of power in all modes.
    “There is no necessity for abstract reasoning. The question is one of simple fact. Does the relative power of producing wealth increase with the increase of population?”— Henry George’s Progress and Poverty, pp. 126-7.
  10. Also the following:—
    “Agricultural profits cannot fall unless recourse is had to poorer land, but such land will never be cultivated, since capitalists can never be willing to submit to a fall of profit: and the very meaning of the expression that some land is not worth cultivating, is, that it will not yield the ordinary profit to the farmer who should attempt to reclaim it. It appears then, that the rate of profit is stationary in agriculture, and, consequently, in all other trades; and that whatever rate be established in an early stage of society, it must remain the same throughout its subsequent development.”— Shadwell’s System of Political Economy, p. 165.

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2, Papers Set for Mid-year Examinations in Philosophy, Political Economy, History, Fine Arts, and Music in Harvard College (February, 1881) included in the bound volume Examination Papers, 1880-81, pp. 16-17.

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POLITICAL ECONOMY 3.
[Final, Year-End Examination, 1880-81, with references to Cairnes and Giffen]

  1. What effect has the existence of “non-competing groups” on the exchange of commodities, each of which is the product of several classes of labor, as g. the exchange of a steam engine for cotton cloth?
  2. How far are prices determined by Reciprocal International Demand, Reciprocal Domestic Demand, and cost of Production respectively? Is any change to be made in Cairnes’s statement that “an alteration in the reciprocal demand of two trading nations will act upon the price, not of any commodity in particular, but of every commodity which enters into the trade?” [J. E. Cairnes. Some Leading Principles of Political Economy Newly Expounded (1874), p. 93]
  3. What inferences are to be drawn from a regularly recurring excess of exports? In what respect is it to be viewed with satisfaction, or the reverse?
  4. The destruction of our carrying trade is spoken of as causing us a serious economic loss. What is the nature of the loss?
  5. A public officer in a recent interview set forth that,—
    “The sorghum, tea and silk industries will before many years save the United States importations amounting to about two hundred million dollars;” and that, inter alia, “we can raise on American soil a tea that will compete successfully in the market of the world and that will save us an annual tribute to foreigners of twenty-two millions.”
    What effect, if any, would this be likely to have on the competition of foreign manufactures with our own?
  6. How was the payment of the French indemnity effected with so little immediate disturbance of the money market, and what connection had the payment with the financial crisis of 1873?
  7. Although “war, it is understood, makes money dear,” still Mr. Giffen (writing in 1872) says that “we are entitled to say that money has been cheap in Europe, notwithstanding the war.” Why did the war not produce the usual effect? [Robert Giffen. Essays in Finance (3rd 1882), p. 55.]
  8. What grounds are there for believing that, at the lowest point of the recent commercial depression, England, instead of “living on her capital,” as some maintained, was still accumulating?
  9. “If we observe that the commencement of the great crisis in the commerce and trade of the world coincides precisely with the demonetization of silver in North America and Germany, we shall easily perceive the connection of causes between that fact and these phenomena, and see that the mischievous results of the demonetization of silver must, from year to year, become more apparent.”
  10. What are Mr. Giffen’s views as to the possibility of an early reduction of the English national debt? What is the nature and advantage of the operation in terminable annuities sometimes undertaken for this purpose?

Source: Harvard University Archives. Harvard University, Examination papers, 1873-1915. Box 2, Papers Set for Annual Examinations in Rhetoric, Philosophy, Political Economy, History, Roman Law, Fine Arts, and Music in Harvard College (June, 1881) included in the bound volume Examination Papers, 1880-81, pp. 12-13.

Image Source: Harvard Square in 1882 from the Brookline Photograph Collection, Public Library of Brookline.

Categories
Exam Questions Harvard

Harvard. Mid-year and Final Exams for all three courses in Political Economy. Laughlin and Dunbar, 1879-80

 

All you could learn in political economy at Harvard in 1880 was packed into four semesters (two full courses). The core textbook was John Stuart Mill’s Principles of Economics. This post provides enrollment data together with the mid-year and course final examinations for Political Economy 1, 2, and 3. What makes this post particularly interesting is that the relevant sections or pages of Mill’s Principles are cited along with the examination questions. Economics in the Rear-view Mirror has added links to those items below.

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Actually only two distinct political economy courses offered in 1879-80

From the following note in the annual Harvard course catalogue we see that Political Economy 1 only offered a “lite” version of Political Economy 2. “Courses 1 and 2 cannot be taken together, nor can either be taken by any student who has taken the other”; “Course 3 is open to those only who have passed satisfactorily in Course 2.” The Harvard University Catalogue (1879-1880), p. 84.

An important guest lecturer at Harvard in 1879-80:

Besides prescribed and elective courses for credit, Harvard offered opportunities for “voluntary instruction”:  In 1879-80 Professor Simon Newcomb gave three public lectures on Political Economy.

Source: The Harvard University Catalogue (1879-1880), p. 90.

The John Stuart Mill textbook of Harvard choice

Most likely edition of John Stuart Mill’s Principles of Political Economy used at Harvard was a New York reprint of the London 5th edition. It corresponds to the pages given for the mid-year exam in Political Economy 1.

“From the fifth London edition” 2v. New York: D. Appleton, 1868.

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Political Economy 1

Enrollments and Text
Political Economy 1
1879-80

Political Economy 1. Dr. Laughlin and Prof. Dunbar. (partial Course.) — Selections from Mill’s Principles of Political Economy. — 1 Section; 2 Exercises per week for Students; 2 Exercises per week for Instructors.

Total 21: 7 Seniors, 9 Juniors, 4 Sophomores, 1 Law.

Source: Annual Report of the President of Harvard College, 1879-80, page 56.

 

POLITICAL ECONOMY 1.
Mid-Year Examination
1879-80

  1. Comment on the following: “The cry was constantly — I know it myself from my intimate acquaintance with the large manufacturers and the small manufacturers too — that every one of them needed more currency than they had. They had capital, but could not get that which enabled them to pay off their hands…The manufacturers need a currency which will enable them to pay their weekly and daily debts.” — Cong. Record, April 7, 1874.
  2. State some of the objections made to Malthus’ Law of Population. (I. 439-40)
  3. Give the law of value regulating manufactured products. (I. 560) How far are such products affected by the Law of Diminishing Returns? (I. 238)
  4. State the argument for or against the common saying “wages are high when trade is good.” (I. 421)
  5. In what way can an increase of Population affect the Cost of Labor to the Capitalist?
  6. Define clearly Value, Price, Real Wages, and Cost of Production.
  7. Describe the offices which are performed by Money. (B. III., ch. vii.)
  8. What is to be said to the following: “Some political economists have objected altogether to the statement that the value of money depends on its quantity combined with the rapidity of circulation; which, they think, is assuming a law for money that does not exist for any other commodity.” (II. p. 43)
  9. What effect had the discovery of gold in this century upon the coinage of the United States?
  10. What circumstances led to the establishment of the Bank of Amsterdam and of the Bank of England respectively?
  11. What changes would be made in the subjoined accounts by,
    1. the deposit of £1,200,000;
    2. the sale of £2,000,000 of government security;
    3. new loans amounting to £3,000,000;
    4. repayment of £750,000 of loans.
  12. If the Bank of England announces an increase of its rate of discount, what is to be inferred as to the cause of this step and its probable effect?

November 12, 1857.

Issue Department.
Notes Issued £21.1 Government Securities £14.5
Coin and Bullion £6.6
£21.1 £21.1

 

Banking Department
Capital £14.5 Government Securities £9.4
Rest £3.4 Other Securities £26.1
Public Deposits £5.3 Notes
Coins
£1.4
Other £12.9
7-day Bills £0.8
£36.9 £36.9

 

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Mid-Year Examinations, 1879-80, pp. 11-12.

POLITICAL ECONOMY 1.
Year-End Examination
1879-80

[Let the answers be given in their proper order]

  1. “If there are human beings capable of work, and food to feed them, they may always be employed in producing something.” (Book I., ch. v., §3.)
  2. When the growth of population outstrips the progress of improvements, what are the means of relief for the laborer? (Book I., ch. xiii., §3.)
  3. What is the reason why land-owners can demand rent? (Book II., ch. xvi., §1.)
  4. State the law of the value of money which governs general prices. What change is to be made in the statement, if credit is to be taken into consideration? (Book III., ch. vii., §§3, 4.)
  5. On what does the desire to use credit depend? What connection exists between the amount of notes and coin in circulation and the use of credit? (Book III., ch. xii., §8.)
  6. In what consists the benefit of international exchange? (Book III., ch. xvii., §3.) State the Law of International values. (Book III., ch. xviii., §4.)
  7. What is the effect of a depreciated currency on (1) foreign trade, and (2) the exchanges? (Book III., ch. xxii., §3.)
  8. Why should a tax on profits, if no improvements follow, fall on the laborer and capitalist? (Book V., ch. iii., §3.)
  9. What effect is produced on prices, profit, and rent by the removal of a tithe? (Book V., ch. iv., §4.)
  10. On whom does a tax on imports generally fall? (Book V., ch. iv., §6.)
  11. Give a history of the circumstances under which the first Legal Tender Act was passed. When were the other acts passed?
  12. Describe the following: (1) national bank-note; (2) five-twenty; (3) seven-thirty; (4) compound interest note; (5) certificate of indebtedness; (6) subsidiary silver coinage; (7) national bank reserve; (8) Resumption Act (briefly).

 

Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Annual Examinations, 1879-80, p. 12.

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Political Economy 2
1879-80

Enrollments and Text
Political Economy 2
1879-80

Political Economy 2. Prof. Dunbar. Mill’s Principles of Political Economy. — Financial Legislation of the United States. — Lectures. — 2 Sections; 3 Exercises per week for Students; 6 Exercises per week for Instructors.

Total 108: 10 Seniors, 83 Juniors, 13 Sophomores, 2 Unmatriculated.

Source: Annual Report of the President of Harvard College, 1879-80, page 56.

 

POLITICAL ECONOMY 2.
Mid-Year Examination
1879-80

  1. State once more and with care the reason for the following proposition: —
    “There is a distinction, more important to the wealth of a community than even that between productive and unproductive labor; — the distinction, namely, between labor for the supply of productive, and for the supply of unproductive, consumption.”
  2. What is the argument for Dr. Chalmers’s opinion that funds required for public unproductive expenditures should be raised by taxes and not by loans, and what cases are to be excepted from his reasoning?
  3. What conclusion as to the limit to the increase of production, does Mr. Mill deduce from his investigation of the laws of the increase of labor, capital and land?
  4. Why are the wages of women generally lower than those of men?
  5. Show carefully the distinction between wages, cost of labor and cost of production.
  6. Define natural value and market value and show what determines them respectively, distinguishing between the three classes into which Mr. Mill divides commodities.
  7. What effect may the great durability of gold and silver have upon the value of money at any given time?
  8. What effect has a general rise of wages upon the values of commodities?
  9. How is it shown that rent forms no part of the cost of production?
  10. The silver dollar contains 412 ½ grains of standard silver, but a dollar of silver change contains only 384 grains. On what theory is this difference of weight made?
  11. What difference has the Act of 1844, known as Peel’s act, made as to the convertibility of the notes of the Bank of England?
  12. If a serious drain of money from England, e.g., to this country, takes place, what steps will the Bank of England take, and what effect is likely to be produced on its account?
    If more convenient, this may be illustrated by using the following account: —
Issue Department.
Notes Issued £36.5 Government Securities £15.0
Coin and Bullion £21.5
£36.5 £36.5

 

Banking Department
Capital £14.5 Government Securities £16.0
Rest £3.2 Other Securities £22.0
Public Deposits £7.6 Notes
Coins

£8.0

£1.1

Other £21.5
7-day Bills £0.3
£47.1 £47.1

 

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Mid-Year Examinations, 1879-80, pp. 12-13.

 

POLITICAL ECONOMY 2.
Year-end Examination
1879-80

[Let the answers stand in your book in their proper order
Take TEN QUESTIONS, including 6, 8, 11, 12 and 13.]

  1. Why is it that “ceteris paribus, those trades are generally the worst paid, in which the wife and children of the artisan aid in the work?” (Book II., ch. xiv., §4.)
  2. If the general rate of profit falls, how will the value of commodities made by hand be affected in comparison with those made by machinery? (Book III., ch. iv., §5.)
  3. “Another of the fallacies from which the advocates of an inconvertible currency derive support, is the notion that an increase of the currency quickens industry.” (Book III., ch. xiii., §4.)
  4. Why is it that in international trade “a thing may sometimes be sold cheapest, by being produced in some other place than that at which it can be produced with the smallest amount of labor and abstinence?” (Book III., ch. xvii. §1.)
  5. What determines the values at which a country exchanges its produce with foreign countries? (Book III., ch. xviii., §8.)
  6. Suppose that a country whose exports have hitherto balanced her imports, makes an improvement which cheapens one of her articles of export, e.g. cloth. Will money flow into or out of the country? Will foreign or domestic consumers of cloth obtain the greater advantage of its cheapness? Give the reasoning on which your answers depend. (Book III., Chap. xxi., §2.)
  7. What effect does an annual payment of interest to foreign creditors have upon the imports and exports of a country? Will interest “payable in gold” necessarily cause gold to be sent out of the country? Why, or why not? (Book III., Chap. xxi., §4.)
  8. How do taxes on agricultural produce, e.g. tithes, affect landlords, farmers, and consumers, respectively, —
    1. when first laid on?
    2. when of long standing? (Book V., ch. iv. §5.)
  9. What are the arguments for and against an income tax? (Book V., ch. iii., §5.)
  10. Discuss the reasons for and against maintaining a surplus revenue for the extinction of national debt. (Book V., ch. vii. §2.)
  11. Explain the changes in the amount of greenbacks outstanding, beginning with February, 1868.
  12. State briefly the history of our gold and silver coinage, as found in the coinage acts of 1792, 1834, 1853, 1873, and 1878.
    The silver dollar contains 371 ¼ grains of silver.
  13. To what extent is the national banknote a legal tender? in what is it payable? what provision is made for its redemption? and what security is there for its ultimate payment?

 

Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Annual Examinations, 1879-80, pp. 13-14.

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Political Economy 3
1879-80

Enrollments and Texts
Political Economy 3
1879-80

Political Economy 3. Prof. Dunbar. Cairnes’s Leading Principles of Political Economy. — MacLeod’s Elements of Banking. — Bastiat’s Harmonies Économiques. — 1 Section; 3 Exercises per week for Students; 3 Exercises per week for Instructors.

Total 24: 24 Seniors.

Source: Annual Report of the President of Harvard College, 1879-80, page 56.

 

POLITICAL ECONOMY 3.
Mid-Year Examination
1879-80

  1. Give a careful and logical summary of the laws determining the values of all commodities, monopolized or free, domestic or foreign, using the corrected definition of Cost of Production. [Forty minutes.]
  2. In the case of accessory products, as, e.g. wool and mutton, what determines their normal values respectively, and what determines the course of their respective values as time goes on?
  3. In his enumeration of the causes which determine the Wages Fund, Mr. Cairnes finds himself obliged to include the rate of wages. How does he avoid the charge of reasoning in a circle?
  4. Comment on the following: —
    “The advocates of the wages-fund theory assume, first, that the capital of a country is a fixed quantity, and that the capital employed in industry is a fixed proportion of this quantity; and, secondly, that wages are paid out of that proportion of capital which is set apart for industry. Both of these propositions, in my opinion, are erroneous.
    “With regard to the first…there is no fact in Economic Science so well established as this, that capital follows profits….Capital is always forthcoming wherever there are prospects of large profits….The capital of a country, therefore, is not a fixed quantity, for if its credit is good, and sufficient inducements are offered in the shape of interest, it can readily borrow whatever it wants. For the same reason the capital employed in industry Is not a fixed quantity, and varies, not in proportion to the gross amount in the country, but in proportion to the profitableness of the industry of that country.
    “With regard to the second proposition…This is true to a limited extent only. No doubt a certain amount of capital is required for the payment of wages, just as a certain amount of capital is necessary for the purchase of raw material. There is this essential difference between the two cases, however, that while raw material is paid for (in cash or bills) before being used, wages are not paid till they have been earned….The employé, in fact, stands to his employer in the relation of a capitalist who advances him the use of his services, which services are ultimately paid for, not out of a wages-fund, but out of the produce of the services themselves.” (Outlines of an Industrial Science: by David Syme. p. 138.)
  5. Give a careful but briefly stated outline (as if written for a rather elaborate Table of Contents) of Mr. Cairnes’s reasoning as to the relations existing between the demand for commodities and the wages fund, and between prices and money-wages.
  6. What is meant by the “comparative costs of production,” on which international values are said to depend; and how is that dependence to be reconciled with the fact that any given sale of goods is found to be an independent transaction, determined by the price of the commodity.
  7. What reasoning led Mr. Cairnes in 1873 to look for a fall of prices in this country, and for possible commercial crises?
  8. What is Mr. Cairnes’s reason for believing that, in the United States, protection is not needed to secure diversity of industries?
  9. If the common saying that “the value of gold is the same all the world over” has no foundation, how does a supply of new gold distribute itself over all countries and over all commodities in each country.
  10. Stafford; Colbert; Sir J. Stewart; Quesnay.

 

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Mid-Year Examinations, 1879-80, pp. 13-14.

 

POLITICAL ECONOMY 3.
Year-End Examination
1879-80

  1. Professor Cairnes says that “the notion which prevails both here and in the United States, that the high rate of general wages obtaining in each country is a hindrance to the extension of its foreign trade, must be pronounced to be absolutely without foundation.”
    By what reasoning this this conclusion supported?
  2. How much truth is there in the maxim that “the value of gold is and must be the same all the world over”?
  3. A few years ago an American writer said, —
    “We will be able to resume specie payments when we cease to rank among the debtor nations, when our national debt is owed to our own people, and when our industry is adequate to the supply of the nation’s need of manufactured goods.”
    With what degree of justice can this be treated as a prediction verified by the events?
  4. Sherman says, —
    “During the last four years the value of our exports of merchandise has exceeded the value of our imports of merchandise $753,271,475. The excess of exports has heretofore been mainly met by the remittance to this country of American securities, but the time appears to have come when the balance of trade in our favor is to be adjusted by means of the precious metals.” — (Finance Report for 1879, p. xxxi.)
  5. It is becoming a serious problem what (English) agriculturists are to do. They will not get rents much lowered in a hurry, for land still commands a high value in the market, and is difficult to be got at all except under special circumstances. Large proprietors would rather cultivate their own land at a loss than submit to a reduction of rent telling on its value.” — (London Times, May, 1880.)
  6. Criticising Professor Cairnes’s reply to M. Alby, Sir Anthony Musgrave remarks,—
    “It is precisely because in no country are all industries equally favored by nature that Mr. Cairnes’s objection fails…. It is exactly because the favored industry in any nation requires no assistance, that it can assist the industries not so fortunate….Suppose that the high price secured by protection is rendered necessary by the onerous conditions under which native industry is tempted to work; suppose that Frenchmen, as Mr. Cairnes says are encouraged to produce iron from ores of inferior quality by the high price secured to them — what has happened? Useful iron has been extracted from ores which would have otherwise have been wasted; employment has been afforded to many who might otherwise have been idle for want of occupation; people have been fed who would otherwise have starved and as a set-off to this, some others have been obliged to smoke fewer cigars and drink less wine than they would have had money to purchase, if they had not been compelled to spend it in iron. In the absence of protection “they,” we are told,” would obtain their iron on more favorable terms at a smaller sacrifice of labor and abstinence by exchanging for it their wines and silks with England.”…Whose labor? and abstinence from what? Unfortunately the persons who have the wine and silk are not those who want the iron. The truth is, we do not want to save labor — we want to find wholesome and remunerative employment for paupers. And if the sacrifice of “abstinence” only means, as I believe it does, that riches will not accumulate so fast in the hands of capitalists — that the employers of labor will have to forego some luxuries that they may give higher wages to the laborers, and that the comforts of life may be thus more equally distributed — I cannot see much objection to this.” — (Contemporary Review, January, 1877.)
  7. “Ever half year we see summaries in the newspapers shewing that the Joint Stock Banks have in the aggregate perhaps $200,000,000 of deposits, and it is supposed that they have that quantity of money to trade with. But it is a complete and entire delusion.”
  8. How does discounting differ from the cash credit system, long practiced by the Scotch banks?
  9. State and explain Bastiat’s law of value.
  10. What is the reasoning in support of the following? —
    “A mesure que les capitaux s’accroissent, la part absolue des capitalistes dans les produits totaux augmente et leur part relative Au contraire, les travailleurs voient augmenter leur part dans les deux sens.”
  11. What is Bastiat’s theory of the value of land, and how is it reconciled with the value attaching to natural fertility?

 

Source: Harvard University Archives. Harvard University. Examination Papers, 1873-1915. Box 2. Bound Volume Examination Papers, 1880-81. Philosophy, Political Economy, History, Fine Arts, and Music. Annual Examinations, 1879-80, pp. 14-15.

Image Source: Charles F. Dunbar photographed by William Notman. Special Collections, Fine Arts Library, Harvard College Library.

Categories
Chicago Economists Policy Race Socialism

Chicago. Laughlin’s anti-bank-deposit-insurance talk, 1908

 

There are two things that I have not been able to figure out about the following report of a talk given by the founding head of the University of Chicago’s Department of Political Economy, J. Laurence Laughlin, against the bank-deposit guarantees promised in the 1908 Democratic Party Platform: (1) what was the point of his joke about the black man and the razor and (2) does “Shivers” refer to a person’s name or does it refer to the physical “shivers” of nervous bank depositors? William Jennings Bryan, the Democratic candidate in the Presidential election of 1908, is clearly Laughlin’s target.

Image Source: From the election of 1908.  Davenport, Homer, 1867-1912, “William Jennings Bryan, bank deposits, political cartoon,” Nebraska U, accessed December 16, 2019.

__________________

Shivers Bryan Bank Plank
Chicago University Financial Expert Declares It Chimerical.
Points Out Its Injustice

Guaranty of Deposits Is Described as a Socialistic Scheme.

Prof. J. Laurence Laughlin, head of the department of political economy of the University of Chicago, who is a national authority on monetary matters, took another hard rap yesterday at the democratic plank for the guaranty of bank deposits.

In concluding his statements, which were made in Cobb hall at the university, the economist declared his opinion about the democratic plank was epitomized by the story of a negro who went into a shop to buy a razor.

“The negro,” said Prof. Laughlin, “was asked if he wished a common razor or a safety razor. “

‘No, sah,’ returned the negro, ‘I just want one for social purposes.’ There you have the bank deposits guaranty idea.

“No one,” continued the speaker, “is so senseless to promote an immediate fund to secure all deposits. It is purely chimerical. Immediate redemption in cash is impossible, especially in any serious crisis since there is no ready money.

Would Work in Insane Asylum.

“The 1907 panic would have spread far and wide if this guaranty of deposits had been in effect then. This guaranty would have been a mere bagatelle. The proposal shows mere ignorance in asking absolute security—just as if any one in this world could give absolute security.

“It is just as well to ask a clergyman on becoming a pastor of a church to guarantee that every member of his flock will not tell a lie, be guilty of any misconduct or go to everlasting damnation,

“It is like A robbing B and going up on the hill to rob C so that B could be reimbursed. In this way C would have to pay for all the deviltry in town. Yes; the bank deposits guaranty would work perfectly-in an insane asylum.

Safety in Bank’s Integrity.

“Do these advocates really know what they are talking about? Good banks can’t prevent bad banks from making poor loans. They can’t stop the initial loans. Why, it would be worse than a disease.”

 

Source: Chicago Tribune, 7 October 1908, p. 5.

Image Source:  Caricature of J. Laurence Laughlin in the University of Chicago yearbook, Cap and Gown, 1907.

.

 

 

Categories
Chicago Economist Market Economists Teaching

Chicago. Laughlin’s observations on state of economics department, 1924

 

This post features a memorandum from 1924 that summarizes a conversation between the president of the University of Chicago and the first head of the department of political economy called in after retirement to help the department in covering a vacancy in its professorial ranks. Among other things we learn that Laughlin’s pension from the university was $3000/year.

Backstory 1: Shortly after being promoted to professor of economics, Harold G. Moulton left the University of Chicago in September 1922 to head the Institute of Economics established by the Carnegie Corporation in Washington, D.C. The department had trouble finding a successor, so among temporary measures it brought James Laurence Laughlin out of retirement during the academic year 1924-25 to help cover the money field. The last item transcribed below summarizes Laughlin’s observations on the state of the department ca. eight years after his retirement in 1916.

Backstory 2: L. C. Marshall’s request to resign both the Deanship of the school of Commerce and Administration [succeeded by W. H. Spencer] and school of Social Service Administration [succeeded by Edith Abbott] was accepted to take effect 31 December 1923. He agreed to continue on as Chairman of the Department of Political Economy under the condition that funds be provided for additional clerical services.

____________________

Letter from Chairman L. C. Marshall to President Ernest D. Burton

The University of Chicago
Department of Political Economy

June 1, 1924

My dear Mr. Burton:

The department of Political Economy sees no way of filling Mr. Moulton’s place in terms of the present situation. We turn, therefore, to temporary measures.

As one phase of the matter, will you approve of bringing Mr. Laughlin back for the Autumn Quarter, in case he is available? The 1924-25 budget contains the funds. I am at this same time asking Mr. Plimpton what would be involved as far as the relationship of stipend to retiring allowance is concerned.

A carbon of this letter is going to Mr. Tufts and Mr. Laing for their information.

Yours very sincerely,
[signed] L C Marshall

LCM:OU

____________________

Letter from Chairman L. C. Marshall to Nathan C. Plimpton, comptroller

The University of Chicago
Department of Political Economy

June 2, 1924

My dear Mr. Plimpton:

In case Mr. J. L. Laughlin should be engaged to give work with us this coming Autumn Quarter would his compensation for this work be in addition to his retiring allowance for that period, or would the allowance be discontinued for that period?

The department is thinking in terms of a stipend of about $2500 if his allowance continues. If it does not, probably $3000 would suffice even though this would less than $2500 plus allowance.

Yours very sincerely,
[signed] L C Marshall

LCM:OU

____________________

Letter from Chairman L. C. Marshall to President Ernest D. Burton

The University of Chicago
Department of Political Economy

May 29, 1924

President Ernest DeWitt Burton
The University of Chicago

My dear Mr. Burton:

This is a request to include in the Political Economy budget for the year 1924-25 the sum of $1,500.00 for clerical assistance.

In order that you may not need to consult files I give below an abstract of the situation up to the present time.

  1. Along about January 1 you expressed a willingness to take up with the expenditures committee the provision of clerical assistance. While you were on your vacation I took the matter up through Mr. Dickerson and a sum was granted providing for clerical assistance during the remainder of this current budgetary year.
  2. I asked Mr. Tufts to insert in the 1924-25 budget a request for $1,500.00 but he indicated the need of awaiting your return before taking action on the matter.
  3. Sometime after your return I asked Mr. Tufts whether he wished to take the matter up with you or whether I should take it up. The reply received indicated that Mr. Plimpton was under the impression that you had some understanding on the matter.
  4. The official copy of the budget received from Mr. Tufts a day or two ago contains no such item.

Yours very sincerely,
[signed] L C Marshall

LCM:EL

____________________

Carbon copy of letter
from President Ernest D. Burton to L. C. Marshall

June 4, 1924

My dear Mr. Marshall:

In reference to your letter of May 29 I am glad to be able to state that the budget of next year as approved by the Board of Trustees carried with it an appropriation of $1500 for clerical service for your department. The statement sent to you by Mr. Tufts was intended to cover only the salaries of the teaching staff.

I am sure the Board of Trustees would approve the recommendation of the department that Mr. Laughlin be invited to give lectures in the autumn quarter. As respects his compensation, concerning which you wrote to Mr. Plimpton, the custom has been to add a stipend for such service to the retiring allowance which is continued without interruption. Mr. Small [Department of Sociology] and Mr. Coulter [Department of Botony] are both being retained next year on this basis, each of them rendering substantially half service throughout the year. The extra compensation is, in one case, $1500, in the other $2000. May I raise the question whether either sum would not be sufficient in Mr. Laughlin’s case also? In other words, $2000 for the special service, in addition to the $3000 of his regular retiring allowance?

Very truly yours,

Mr. L.C. Marshall
The University of Chicago

EDB:HP

____________________

Memorandum of Conversation with
Professor Laughlin
—November 19, 1924

On returning to the University Mr. Laughlin is struck with two things in respect to the Department of Political Economy.

1) The introductory courses are not as well conducted as they were in 1916. Then some of the abler men of the department were giving them. Now they are largely in the hands of instructors and assistants.

2) There has been a large increase in the number of graduate students.

There are four Universities that have graduate departments in Political Economy that need to be taken into account by us.

Columbia has the largest department.

Chicago is second in size.

Harvard is falling off.

Wisconsin is falling off.

            The task of meeting graduate students and overseeing their work is an arduous one. We must, however, hold our own in dealing with this class of students. It would be desirable to raise the level of undergraduate work, but not at the expense of sacrificing our graduate work.

We must hold our present staff. Marshall, Clark and Viner are the best men. Wright is a good man. Field and Millis are pretty set in their ways, but this whole staff should be retained.

(In subsequent conversation with Marshall he said Field was the best man of the whole group, but that his Harvard inhibitions made it impossible for him to bring things to pass. He is afraid of what people will say and of the tendency of things. Millis is a good man, but no longer capable of much re-adjustment.)

Mr. Laughlin urges that we must get a first class man in money. He believes that the business interests should be asked to give money for this particular purpose.

The weakness of the undergraduate department is due to the lack of good men and salaries to pay them. C & A is doing most of the undergraduate work. This is not in itself objectionable. The spirit of C & A is good.

It is very desirable to unify the Department of Economics and the School of Commerce and Administration further.

 

Source: The University of Chicago Archives. Office of the President. Harper, Judson and Burton Administration Records. Box 23, Folder 6 “Department of Political Economy, 1894-1925) Part 2”

Image Source: University of Chicago Photographic Archive, apf1-03687, Special Collections Research Center, University of Chicago Library.

Categories
Exam Questions Harvard Undergraduate

Harvard. Examination questions for Political Economy I, 1884-1888.

 

 

 

With this post we add about fifty new questions to our growing stock of Harvard economics examinations. Nine of the sixty-three questions transcribed below are identical or nearly identical to those found in the 310 questions appended to Laughlin’s abridged version of John Stuart Mill’s Principles that served as the course textbook at Harvard at the end of the 19th century.

See:  Principles of political economy, by John Stuart Mill. Abridged with critical, bibliographical, and explanatory notes, and a sketch of the history of political economy by, J. Laurence Laughlin. New York: D. Appleton, 1884.

The new questions come from what we would today call a “Student’s Guide” to the Mill/Laughlin textbook. He called the printed 72-pages a “Synopsis”.

________________________

About Laughlin’s “Student’s Guide to John Stuart Mill”

This Synopsis is intended to replace the text book in preparing for the examinations, but it will also be found extremely useful during the year in answering the weekly written questions. The index at the end has been prepared especially for use in connection with the examination papers contained in the appendix to this book, and in the second appendix to the text book.

A Synopsis of the First Three Books of John Stuart Mill’s Principles of Political Economy, as revised by Prof. J. L. Laughlin with an appendix containing the recent examination papers in Political Economy I. Cambridge, Mass.: W. H. Wheeler, 1888.

________________________

PAPERS SET FOR EXAMINATION IN POLITICAL ECONOMY I.
[# in Laughlin’s list of 310 questions (1884)]

1883-1884.

  1. Explain carefully the following terms: production, consumption, effectual demand, margin of cultivation, cost of production, value of money, cost of labor, wealth, and abstinence. [#2, virtually identical]
  2. What conclusion as to the limit to the increase of production does Mr. Mill deduce from his investigation of the laws of the various requisites of production? [#54]
  3. Explain clearly how it is possible for the land of a country which is all of a uniform fertility to pay rent. [#105]
  4. Point out distinctly the connection between the money wages of laborers in the United States and the productiveness of the soil. [#244]
  5. Explain the operation of the laws of value by which the relative prices of wool and mutton would be regulated. [#194]
  6. Why is it necessary to make any different statement of the laws of value for foreign than for domestic products? What is the cause for the existence of any international trade? [#199]
  7. (1) What is the true theory of one country underselling another in a foreign market? (2) What weight should be attributed to the fact of generally higher or lower wages in one of the competing countries? [#241]
  8. If capital continued to increase and population did not, explain the proposition that “the whole savings of each year would be exactly so much subtracted from the profits of the next and of every following year.” [#254, virtually identical]
  9. Give the arguments for and against the income tax. Would the tax on any kinds of income not fall upon the persons from whom it was levied? Explain.
  10. Define the term banking-reserve. What is the theory on which only a small part of the total resources is constantly kept as a reserve? What relation exists between the items of deposits, loans, and reserve?
  11. Explain the provisions of the Resumption Act, and show how the actual results were produced.
  12. Was the issue of greenbacks in February, 1862, an actual necessity?

 

1885-1886.

  1. Explain what is meant by the “standard of living” of the laboring class. In a densely populated country would the standard of living have any influence on the general rate of wages?
  2. Show clearly why there must be land in cultivation which pays no rent.
  3. Explain carefully the relation between Cost of Labor and Real Wages. How can an increase of population affect Cost of Labor?
  4. Under what conditions can it be said that normal value depends on the “expenses of production”? State the law of market and normal value for commodities affected by the law of diminishing returns.
  5. Explain the reason for the existence of foreign trade. Is there any different reason for the exchange of goods in domestic trade?
  6. What is inconvertible paper money? From the history of the United States notes state the main events showing the attitude of Congress towards their issue, while the notes were inconvertible.
  7. Why is a bank obliged to limit its loans when its cash reserve is seriously impaired?
  8. Why is it that the products of extractive industries are liable to great variations of market value?
  9. Upon whom would a tax on Rent fall? Would such a tax be a discriminating tax on the agricultural interests?
  10. What are the advantages of direct taxation? State by what kinds of taxation, direct or indirect, the United States gets its revenue.
  11. Is it correct to say that high wages alone prevent us from selling manufactured goods in foreign markets!

 

1886-1887.

  1. Compare the economic effects of defraying war expenditures by loans and by taxation. [#33, virtually identical]
  2. Does the rent of a factory building affect the value of the goods made in it? Does the rent of a farm affect the value of the grain grown on it? Does the rent paid for a lot near a great city, from which gravel is taken, affect the value of the gravel?
  3. It has been said that “the laws and conditions of the production of wealth partake of the character of physical truths. There is nothing optional or arbitrary in them.” State briefly the laws of the production of wealth here referred to, and whether the statement in regard to them is true.
  4. It has been said that the law of population and the law of diminishing returns from land point inevitably to misery and want as the destiny of the mass of mankind. What influence affecting the operation of these laws are to be taken into account; and if they are taken into account, are the laws of population and diminishing returns from land thereby shown to be invalid?
  5. Explain briefly the nature of the remuneration received by the following persons: a farmer tilling his own land; a merchant carrying on business with his own capital; a manufacturer carrying on business with borrowed capital; a holder of railway stocks; a holder of government bonds; a patentee.
  6. Wherein is the value of metallic money governed by different principles from those that regulate the value of commodities in general? And wherein is the value of inconvertible paper money governed by different principles from those that regulate the value of coin?
  7. Credit is said to be purchasing power. Explain what is meant by this proposition, and in what manner it bears on the theory of the value of money. Point out in what form credit, as purchasing power, is most likely to affect prices in the United States and in France.
  8. (a) Suppose that:
    In the U. S. one day’s labor produces 2 bushels of corn;
    In the U. S. one day’s labor produces 10 yards of cotton cloth;
    In England one day’s labor produces 1 bushel of corn;
    In England one day’s labor produces 5 yards of cotton cloth.
    Would trade arise between England and the United States? If so, how?
    (b) Suppose that in England one day’s labor produced 8 yards of cotton cloth, other conditions remaining the same as in (a). Would trade arise? If so, how?
    (c) Suppose that in England one day’s labor produced 2 yards of cotton cloth, other conditions remaining the same as in (a). Would trade arise? If so, how?
  9. Suppose a new article to appear among the exports of a given country. Trace the effects in that country on the course of the foreign exchanges; on the flow of specie; on the value of money; on the terms of international exchange. Would the results be the same if, instead of a new article of export, some article previously exported were to be sold abroad in larger quantity because of a lowering of its cost and price?
  10. (a) Arrange in proper order the following items of a bank account: Loans, $538,000; Bonds and Stocks, $40,000; Capital, $200,000; Real Estate, $26,000; other assets, $26,000; Surplus, $65,100; Deposits $440,000; Notes, $101,550; Cash, 124,000; Cash Items, $52,650.
    (b) Suppose the bank to discount four months paper (at 6 per cent) to the amount of $10,000 of which it purchases one-half by promises to pay the bearer on demand, and one-half by cash. How would the account then stand?
    (c) Suppose a borrower to have repaid a loan of $2000 by giving $1000 in cash, and $1000 in a cheque on the bank. How would the account then stand?
    (d) Suppose the bank to be confronted, in a time of general embarassment, with demands from depositors for cash, and from borrowers for discounts. What policy would be adopted if it were the Bank of England? if it were a United States national bank?

 

1886-1887.

DIVISION A.

  1. If taxes levied on the rich cause a diminution in their unproductive expenditure, would that in any way affect the employment offered for labor? Discuss fully.
  2. What principle does Mr. Mill furnish by which the respective shares of labor and capital are determined? Has his Wages-Fund Theory any connection with his exposition of the dependence of “profits” on Cost of Labor?
  3. In discussing the distribution of the product, why is it that the relative shares of labor and capital can be discussed independently of rent? Would an increase of rent affect the share of labor or of capital?
  4. Why is it that city banks make a greater use of the deposit liability than of the note liability? Why is the fact just the reverse with country banks?
  5. State fully the difference between Cost of Labor and Cost of Production. Would a decrease in Cost of Production affect Cost of Labor in any way?
  6. If the returns, and consequently wages, in our extractive industries were to decline, how would the course of our foreign trade probably be affected?
  7. Explain carefully how, and under what conditions, Reciprocal Demand regulates Normal Value.
  8. How do you reconcile the doctrine of comparative cost in international trade with the fact that a merchant regulates his conduct by a comparison of prices at home with prices abroad?
  9. Explain how a tax on “profits” may fall either (1) on the laborer, or (2) on the landlord.
  10. Discuss the argument that protection raises wages.
  11. Is the customs-duties on sugar economically justified?

 

DIVISION B.

  1. Suppose the price of silver to rise to such a point that the ratio of silver to gold would be 15 to 1, what change would take place in the money at present in use in the United States? Is such a change probable? if so, why? if not, why not?
  2. State the essential differences between the coinage acts of 1792, 1834, and 1878.
  3. “All experience has shown that there are periods when, under any system of paper money, however carefully guarded, it is impracticable to maintain actual coin redemption. Usually contracts will be based on current paper money, and it is just that, during a sudden panic or an unreasonable demand for coin, the creditor should not be allowed to demand payment in other than the currency in which the debt was contracted. To meet this contingency, it would seem to be right to maintain the legal tender quality of United States notes. If they are not at par with coin, it is the fault of the Government and not of the debtor, or rather it is the result of an unforeseen stringency not contemplated by the contracting parties.” From the Report of the Treasury, dated December, 1887.
    Under what circumstances was this passage written? Is the recommendation made by it a wise one? Has it been acted on?
  4. Ten men club together to buy flour at wholesale, each taking a part and paying his share of the price. Ten others club together, borrow money jointly, and lend it out to themselves for aid in carrying on their trades. A third ten club together, set up a work shop on joint account and work in it, and periodically divide the net proceeds. What kinds of cooperation are typified, respectively, by these proceedings? In what countries has each kind been most widely applied? Which seems to you to be of greatest intrinsic interest for the social question?
  5. What is meant by the eight-hour law? Wherein does it resemble, and wherein differ from, factory legislation in England?
  6. Compare the regulations of the Knights of Labor in regard to strikes with those of an English Trades-Union.
  7. “The present doctrine is that the workman’s interests are linked to those of other workmen, and the employer’s interests to those of other employers. Eventually it will be seen that industrial divisions should be perpendicular, not horizontal.” Explain what is meant by this passage; state by what devices it is endeavored to promote the ” horizontal ” and the “perpendicular” divisions, respectively; and give an opinion as to which line of division is likely to endure.
  8. The declaration of principles of Knights of Labor demands “the enactment of laws providing for arbitration between employers and employed, and to enforce the decision of the arbitrators.” Is it desirable to comply with that demand in whole, in part, or not at all?
  9. Suppose a tax were levied of ten per cent on the house-rent paid by every person, those who occupied their own houses being assessed for the letting value of their dwellings. Would such a tax be direct or indirect? Would it conform to the principle of equality of taxation? Give your reasons.

 

1887-1888.
Mid-year. 1888.

  1. Is productive consumption necessarily consumption of capital? Can there be unproductive consumption of capital?
  2. Distinguish which of the following commodities are capital, and, as to those that are capital, distinguish which you would call fixed capital and which circulating.
    A ton of pig iron; a plough; a package of tobacco; a loaf of bread; a dwelling-house.
    Can you reconcile the statement that one or other of these commodities is or is not capital with the proposition that the intention of the owner determines whether an article shall or shall not be capital?
  3. Suppose an inconvertible paper money to be issued, of half the amount of specie previously in circulation. Trace the effects (1) in a country carrying on trade with other countries, (2) in a country shut off from trade with other countries.
  4. Explain in what manner the proposition that the value of commodities is governed by their cost of production applies to wheat, to iron nails, and to gold bullion.
  5. Explain the proposition that rent does not enter into the cost of production. Does it hold good of the rent paid for a factory building? Of the rent paid for agricultural land?
  6. It has been said that wages depend (a) on the price of food, (b) on the standard of living of the laborers, (c) on the ratio between capital and population. Are these propositions consistent with each other? Are they sound?
  7. Suppose that
    One day’s labor in the United States produces 10 pounds of copper,
    One day’s labor England produces 8 pounds of copper,
    One day’s labor in the United States produces 5 pounds of tin,
    One day’s labor England produces 5 pounds of tin,
    Would trade arise between England and the United States, and if so, how?
    Suppose that, other things remaining as above, one day’s labor in England produced 12 pounds of copper, would trade arise, and if so, how?
  8. Explain what is meant when it is said that “there are two senses in which a country obtains commodities more cheaply by foreign trade: in the sense of value, and in the sense of cost.”
  9. Arrange in proper order the following items of a bank account: Capital, $300,00; Bonds and Stocks, $35,000; Real estate and fixtures, $20,000; Other assets, $20,000; Surplus, $80,000; Undivided Profits, $10,500; Notes, $90,000; Cash, $110,000; Cash items, $90,000; Deposits, $850,000; Loans, $1,050,000; Expenses, $5,500. ,
    Suppose loans are repaid to this bank to the amount of $100,000. One half by cancelling deposits, one quarter in its own notes, and one quarter in cash; how will the account then stand?
  10. What is the effect of the use of credit on the value of money? Wherein does credit in the form of bank deposits exercise an effect on the value of money different from that of credit in the form of bank notes?

 

Source: A Synopsis of the First Three Books of John Stuart Mill’s Principles of Political Economy, as revised by Prof. J. L. Laughlin with an appendix containing the recent examination papers in Political Economy I. Cambridge, Mass.: W. H. Wheeler, 1888.

Image Source: James Laurence Laughlin. University of Chicago Photographic Archive, apf1-03687, Special Collections Research Center, University of Chicago Library.

Categories
Chicago Third Party Funding

Chicago. Sources of private graduate fellowship funding, 1905-1923

 

To give a sense of the real magnitudes involved below, here the following table that provides estimates of annual expenses exclusive of tuition for thirty-six weeks of a student residing with the quadrangles in 1919.

Lowest

Average

Liberal

Rent and care of room

$60.00

$105.00

$225.00

Board

$162.00

$193.00

$240.00

Laundry

$18.00

$30.00

$45.00

Textbooks and stationery

$10.00

$20.00

$50.00

Total

$250.00

$353.00

$560.00

Source:  University of Chicago.  The Colleges and Graduate Schools. Circular of Information Vol. XIX, No. 4 (April 1919), p. 9.

______________________

THE UNIVERSITY OF CHICAGO
STATEMENT OF THE
POLITICAL ECONOMY FELLOWSHIPS

In February, 1905, through the efforts of members of the Department of Political Economy, the sum of $1,000.00, in the form of ten gifts of $100.00 each from Chicago business men was received, to be used for Special Fellowships in the Department of Political Economy. This was the beginning of an interest which has continued year by year with gifts of varying amounts, and which gives promise at the present time of increasing, inasmuch as larger gifts from new sources have recently been received. As reported by the President to the Board of Trustees at the meeting held May 18, 1922, Marshall Field III, now of New York, proposes to give $1,000.00 annually until such time as he is able to provide the principal sum which will yield an annuity of that amount. His first payment of $1,000.00 was received on April 14, 1922.

Since 1905 to date, a total of $12,190.00 has been contributed by the following:

 

Hart, Schaffner & Marx $4,640. A. C. Bartlett $ 100.
Marshall Field I 100. Ira N. Morris 100.
Marshall Field III 1,000. Victor Moravitz 100.
George M. Reynolds 300. Stuyvesant Fish 100.
C. R. Crane 1,100. Santa Fe Railway Co. 100.
Frank O. Lowden 850. H. H. Swift 2,000.
Samuel Insull 800. P. Wasburg 100.
Byron L. Smith 375. From friends, through J. L. Laughlin 425.

During the period, a total of $9,668.94 has been used for fellowships, leaving a balance of $2,521.06 unused. Only three fellowships are being used at the present time, but plans are under way for extensive work under these fellowships for the year 1923-24.

The contributions and expense of the fellowships by years are as follows:

Year Gifts Expended for Fellowships
1904-05 $1,000.00
1905-06 600.00 $1,600.00
1906-07 720.00 640.00
1907-08 670.00
1908-09 325.00 650.00
1909-10 720.00 386.65
1910-11 820.00 347.21
1911-12 820.00 1,011.09
1912-13 645.00 1,136.53
1913-14 325.00 463.19
1914-15 645.00 249.97
1915-16 620.00 792.77
1916-17 172.22
1917-18 320.00
1918-19 11.11
1919-20 320.00 88.88
1920-21 320.00 541.66
1921-22 2,320.00 300.00
1922-23 (part) 1,000.00 1,277.66
$12,190.00 $9,668.94
Balance                   2,521.06
$12,190.00 $12,190.00

Respectfully submitted,
[Signed]
N. C. Plimpton

March 31, 1923

 

Source: University of Chicago Archives. Office of the President. Harper, Judson and Burton Administrations. Records. Box 43.   Folder “Fellowships, 1896-1924”.

 

Categories
Exam Questions Harvard

Harvard. J.S. Mill’s Principles of Political Economy. Laughlin and Taussig, 1882-83

 

 

James Laurence Laughlin and Frank William Taussig were both appointed at the rank of “Instructor in Political Economy” for 1882-83. The final exams for the first and second terms of the course come from Taussig’s personal scrapbook that he kept of his printed final examinations at Harvard. Reading assignments for the course almost certainly came from the following three books in one form or other.

Here is an earlier post that describes the content of Political Economy 1 taught in the 1884-85 academic year.

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Published texts where Course Readings Can Probably Be Found

Principles of Political Economy by John Stuart Mill, abridged and edited by J. Laurence Laughlin. New York: D. Appleton and Company, 1884.

Charles F. Dunbar (ed.) Extracts from the Laws of the United States Relating to Currency and Finance. Cambridge: 1875.

Charles F. Dunbar. Chapters on Banking. Cambridge: 1885. [First four chapters as bases of a short course of lectures on banking, written 1882, given annually to classes in the elements of political economy.]

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Course Announcement

Political Economy.

  1. Mill’s Principles of Political Economy.—Lectures on Banking and the Financial Legislation of the United States. Mon.,Wed., Fri., at 9. Mr. Taussig and Dr. Laughlin.

Source:  The Harvard University Catalogue 1882-83p. 89.

____________________

Course Enrollment

Elective Studies
Political Economy

Instructors

Course of Instruction Hours per week.

Students

Dr. Laughlin and
Mr. Taussig

1. Mill’s Principles of Political Economy.—Lectures

3

Total 155:
1 Graduate, 22 Seniors, 113 Juniors, 13 Sophomores, 6 Other.

Source: Harvard University. Report of the President of Harvard College 1882-83, p. 66.

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Course Examinations

POLITICAL ECONOMY 1.
Mid-year. Feb. 9, 1883.

I.
(Answer briefly all of the following.)

  1. What distinction does Mill draw between productive and unproductive labor? Discuss the value of this distinction. Distinguish between productive and unproductive consumption.
  2. What is the distinction between fixed and circulating capital? Is money part of the fixed or of the circulating capital of a country? Why?
  3. What are the classes among whom the produce is divided? Are these classes necessarily or usually represented in as many different acts of persons? How could you classify the peasant proprietor?
  4. Of what commodities are the values governed by the law of cost of production? Explain the process by which that law operates.
  5. “Rent does not enter into the cost of production of agricultural produce.” Explain.
  6. What regulates the value of an inconvertible paper currency? What causes it to depreciate? Discuss briefly the results of depreciation.
  7. Arrange the following items on the proper sides of the account:—
Circulation 315.0
Due to Banks 259.9
Legal Tender Notes 63.2
Loans 1,243.2
Bond for circulation 357.6
Due from Banks 198.9
Deposits 1,134.9
Specie 102.9

Compute just how much circulation is permitted by our laws; and give in figures both the (1) reserve required at 25%, and the (2) difference between the actual and required reserve, on the basis of the above account.

  1. Compare the plans of our National Bank system with those of the Bank of England and the Imperial Bank of Germany in regard to the security of note-issues.

 

II.
(Answer more fully three of the following.)

  1. What are the constituent elements of what Mill calls “profits”? Explain what is meant in common language by the word “profits,” and discuss the nature of profits in this sense.
  2. “The laws of the production of wealth partake of the nature of physical truths….It is not so with the distribution of wealth. That is a matter of human institution solely.” Explain the distinction, and show its connection with the subjects of communism and socialism.
  3. Mention the methods by which it is attempted to keep gold and silver concurrently in circulation. Explain why “a double standard is alternately a single standard.” Does this tend to be the case now in the United States?
  4. Distinguish between real and proportional wages, and illustrate the distinction. In what sense is the word wages used when it is said that the profits depend on wages, rising as wages fall, and falling as wages rise?
  5. It is not a difference in the absolute cost of production which determines the international cost of exchange, but a difference in the comparative cost.” Explain this proposition, and apply it to the trade between the United States and European countries. Is the trade between tropical and temperate countries based, in the main, on a difference of absolute or of comparative cost?

    ____________________

POLITICAL ECONOMY 1.
Final examination. June 15, 1883.

I.
(Take all of this group.)

  1. Explain what is meant by a bill of exchange. What causes bills on a foreign country to be at a premium or discount? Show in what way the premium (or discount) is prevented from going beyond a certain point.
  2. Is there any connection between the rate of interest and the abundance or scarcity of money? Explain and illustrate the following: “The rate of interest determine[s] the price of land and of securities.”
  3. Describe the three different kinds of cooperation, and say something of the success attained by each. What are the two classes of distributive coöperation, and wherein do they differ?
  4. Show under what circumstances the increase of capital brings about the tendency of profits to fall. What influences counteract this tendency?
  5. Explain what is meant by the rapidity of circulation of money. What is the effect of great rapidity of circulation on prices and on the value of money? What is the effect of the use of credit? Mention the more important methods in which credit is used as a substitute for money.

II.
(Omit one of this group.)

  1. Discuss the effect of the introduction of a new article of export from a given country on the course of the foreign exchanges in that country, on the flow of specie, and on the terms of international trade (i.e. on international values).
  2. What are the causes which enable one country to undersell another? Do low wages, or a low cost of labor, form one of those causes?
  3. Discuss the immediate and the ultimate effects on rents of the introduction of agricultural improvements. Do those ultimate effects which Mill describes necessarily take place?
  4. What is the immediate and what the ultimate incidence of a tax on houses? Show in what manner the incidence of a tax on building-ground differs, according as the tax is specific (so much on the unit of surface), or rate (so much on the value).

III.
(Omit one of this group.)

  1. Describe the situation which caused the banks in the United States to suspend specie payments in 1861.
  2. What is the difference between bonds and Treasury notes? Name and explain the different kinds of bonds issued during the war.
  3. Explain the causes which made possible the great sales of five-twenty bonds in 1863.
  4. What arguments were advanced for the continuance of the National Bank System in 1882?

 

Source:  Harvard University Archives. Examination Papers in Economics 1882-1935. Prof. Frank W.Taussig Scrapbook, pp. 2-3.

Image Sources: J. Laurence Laughlin (left) from Marion Talbot. More Than Lore: Reminiscences of Marion Talbot, Dean of Women, The University of Chicago, 1892-1925. Chicago: University of Chicago (1936). Frank W. Taussig (right) from E. H. Jackson and R. W. Hunter, Portraits of the Harvard Faculty (1892).

Categories
Chicago Economists Johns Hopkins

Chicago. The Edward W. Bemis controversy, 1895

 

 

 

This post turns out to include nearly twenty pages worth of artifacts bearing on the so-called Bemis controversy at the University of Chicago in 1895. Edward W. Bemis was a student of Richard T. Ely at Johns Hopkins University where he earned a Ph.D. in 1885 with the thesis “Local Government in Michigan and the Northwest.” Bemis was an early hire for the University Extension division at the University of Chicago, teaching courses in economics and sociology. I originally intended only posting three newspaper articles that presented claims and counterclaims regarding the grounds for his controversial dismissal. This academic affair was framed by the press as one of academic freedom being attacked by money-interests. The closer I looked at the case, the more complicated it seemed. 

Once I gathered most of the artifacts transcribed below, I looked for secondary literature and found Harold E. Bergquist Jr.’s “The Edward W. Bemis Controversy at the University of Chicago” published in the AAUP Bulletin, Vol. 58, No. 4 (Dec., 1972), pp. 384-393. Looking at essentially the same material, Bergquist concluded that Bemis’s views on labor and municipal gas monopolies attracted so much negative attention that Chicago president William R. Harper chose to sacrifice the lone-scholar Bemis in the interests of the university. Compared to other attacks on academic freedom from about the same time at Stanford (Ross) and Wisconsin (Ely), the Bemis incident appears to me to be far-more of an in-house affair where the merit assessments of an individual professor and the institutional powers have significantly diverged.

Following a few biographical items, I present a roughly chronological set of artifacts that reveal the complexity of this one man’s academic fate. For what it is worth, I see the tale to be ultimately one of rejection of a Richard T. Ely transplant into the Chicago host departments. The university department heads of political economy (J. Laurence Laughlin) and sociology (AlbionW.  Small) thought well enough of Bemis for the adult-education and outreach Extension program but didn’t really want him in their own departmental backyards. Bemis’ positions on labor disputes and municipal gas monopolies certainly attracted the displeasure of the actual and potential donors to the University of Chicago, but their displeasure appears much less important than the fact that Bemis had not been particularly successful in generating income for the infant university extension program as originally hoped.

For background a convenient first-stop: Edward W. Bemis, 1860-1930 at the History of Economic Thought Website. Includes a list of major works.

RESEARCH TIP:   The Guide to the University of Chicago Office of the President, Harper, Judson and Burton Administrations Records 1869-1925  includes links to scans of the documents.

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Biographical Notes on Edward W. Bemis
Western Reserve Historical Society

BEMIS, EDWARD W. (7 Apr. 1860-25 Sept. 1930), a college professor, expert on public taxation, and proponent of municipal ownership, was a political ally of TOM L. JOHNSON, serving as superintendent of the Cleveland Water Works from 1901-09. Born in Springfield, Mass., Bemis, son of Daniel W. and Mary W. Tinker Bemis, was educated at Amherst College (A.B., 1880; A.M., 1884) and Johns Hopkins (Ph.D., 1885), studying history and economics. He reportedly taught the first university extension course in America, at Buffalo, N.Y., in 1885, then taught economics at Amherst (1885-86); Vanderbilt (1888-92); the University of Chicago (1892-95), which he had to leave because of his “radical” views; and Kansas State Agricultural College (1897-99). Bemis prolifically wrote about local government, tax policy, municipal ownership of utilities, working conditions, labor strikes, trade unions, socialism, and religion and social problems.

Tom Johnson gave Bemis an opportunity to enact his reforms as head of the municipal waterworks, a department described as “a nest of party hacks.” Bemis replaced the spoils system with the merit system, unleashing protests from both the department and the local Democratic organization. Bemis ran the department in a businesslike manner, installing a record 70,000 meters and reducing rates. The elimination of graft and incompetent workers enabled completion of the water-intake tunnel. Bemis also crusaded for higher tax evaluations on properties owned by utilities and railroads. After 1909, Bemis moved to New York City, where he served in similar capacities and worked as a consultant.

Married on 28 Oct. 1889 to Annie L. Sargent, Bemis had three children: Walter S., Alice L., and Lloyde E. Bemis died in Springfield, MO and was buried in New York City.

Source:  Bemis, Edward W. in Encyclopedia of Cleveland History.

*  *  *  *  *

From the 1911 Encyclopaedia Britannica

BEMIS, EDWARD WEBSTER (1860-[1930]), American economist, was born at Springfield, Massachusetts, on the 7th of April 1860. He was educated at Amherst and Johns Hopkins University. He held the professorship of history and political economy in Vanderbilt University from 1887 to 1892, was associate professor of political economy in the university of Chicago from 1892 to 1895, and assistant statistician to the Illinois bureau of labour statistics, 1896. In 1901 he became superintendent of the Cleveland water works. He wrote much on municipal government, his more important works being some chapters in History of Co-operation in the United States (1888); Municipal Ownership of Gas in the U.S. (1891); Municipal Monopolies (1899).

Source: 1911 Encyclopaedia Britannica Vol. 3, p. 714.

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A handwritten letter from J. Laurence Laughlin to President William R. Harper, August 1893

 

Beaver River Station,
via Herkimer, N.Y.
Aug. 31, 1893

My dear President Harper,

Yours of 29that hand.

The real difficulty in re Bemis, is that (1) he was acquiesced in solely for University Extension work, and I never for a moment thought of him as holding a permanent position in the regular officers of instruction. And (2) at that time also you emphasized the clear line of demarcation between the Extension Dep’ts & the University—proper. Now, nothing has occurred to change these two things. But from a desire for “uniformity” simply, a move is made which, in the judgment of a Head-Professor seriously impairs the morale of his department. It is my duty to enter my protest, both as a matter of policy & principle. (1) I do not believe Bemis is a man of such value to you that he is worth the injuring of a department. Consequently I suggest that he be transferred to another department. Would it not be perfectly easy to put both his courses into Social Science? Bemis really wishes to lecture on Labor etc rather than on Trades Unions etc., & the Labor course might go under Soc. Sci.—if Small does not object. Then, I have no objection to his remaining in charge of the Extension work in Economics; although I do not believe he is competent to treat a difficult economic problem. (2) Is it fair to hold a head-professor responsible for the working of his department if action is taken contrary to his judgment? In this case, I think your are unwittingly doing us harm; and consequently, I must ask to be relieved of settling questions arising from it, or of responsibility for the efficiency of the work. Of course, if it is your policy to take on yourself a large part of the responsibility hitherto laid on the head-professor, and yourself to watch many of the details, that is another matter; no doubt, you can do it far better than I. Only we should clearly understand what you expect me to do. I need not say it would be a great relief to have these matters taken off my mind; then I could occupy myself entirely with my own economic studies.

I am very sorry indeed to trouble you with this matter; but I should be disloyal to you and to the University if I did not point out the dangers inherent in this case. It is no easy matter to keep in harmonious adjustment the work and careers of six or seven men in a new department, as you will be the first to appreciate.

Very sincerely yours,

Laurence Laughlin

 

Source:   University of Chicago. Office of the President. Harper, Judson and Burton Administrations. Records, Box 57, Folder #13 “Laughlin, J. Laurence, 1892-1917”, Special Collections Research Center, University of Chicago.

__________________

Bad news from Harper to Bemis
January 1894

Office of the President

The University of Chicago
Founded by John D. Rockefeller

Chicago January 1894

Copy.

My dear Prof. Bemis:-

I write you this letter because I think I can state what is in my mind more easily in writing than in conversation. You will remember that I was very anxious to have you take hold of the work with us in the University, and you will recall the battle I had with some of our gentlemen in reference to it, a battle fought and won. I counted upon great results from the Extension work, and I hoped that as time passed there would be opportunities for your doing a larger amount of work in the University Proper. As matters now stand the Extension work has been this year largely a failure so far as you are concerned, and instead of the opportunity becoming better on your part for work in the University Proper, the doors seem to be closing. You will perhaps be surprised, but it is necessary for me to say that it does not seem best for us to look forward to your coming more definitely into the work of the University Proper. After a long consideration of the matter, and a study of all circumstances; looking at it too from your point of view and with a view to your interests, I am persuaded that in the long run you can do in another institution because of the peculiar circumstances here, a better and more satisfactory work to yourself than you can do here. I am very sorry to say this, for as I need not assure you, I am personally very much attached both to you and to Mrs. Bemis. You are, however, man of the world enough to know that unless one is in the best environment, he cannot work to the best advantage. You are so well known and your ability so widely recognized that there will surely be no difficulty in securing for you a good position, one in which you will be monarch, and one in which you will be above all things else independent. I wish to say that I will do all I can, and I think I can do much to help you in this matter, and I beg you to understand that I have come to this conclusion after much study and with greatest reluctance. If you will accept this and allow me to help you, I am sure that we can arrange matters in a first rate way. The interests of all I think would be conserved if the new arrangement could be made for the year beginning July 1stor Oct 1st. I shall be very glad to meet you, not to discuss this, for I think it best to call it settled, but to discuss the question of your future work, in which I wish to express the deepest interest. You will, I am confident, distinguish in your mind between the official act which I am compelled to perform, and the personal attitude which I wish now and always to assume toward you. I should be glad to see you at your earliest convenience.

Yours very truly,

Source:   University of Chicago. Office of the President. Harper, Judson and Burton Administrations. Records, Box 11, Folder #4 “Bemis, Edward W., 1892-1895”, Special Collections Research Center, University of Chicago.

__________________

Handwritten letter from Bemis to Harper
July 1994

5835 Drexel St.

July 23-94

My dear President Harper!

Having been informed today on second hand but apparently trustworthy authority that some of the authorities (trustees I assume) of our University are displeased with what they suppose has been my attitude in this great RR strike, I write to correct any possible false reports.

I wrote a letter to Mr. Debs just before the strike urging him, for I knew him slightly, not to have the strike.

Then when all the trades were considering the propriety of a general strike in the city I spent several hours in trying to dissuade the leaders of some of the unions. Later when the officers of many national unions came here to consider the further extension of the strike I feel sure I contributed to strengthening the resolution of Pres’t Gompers & Sec’y Evans of the American Federation of Labor not to participate.

In every way have I tried to calm the troubled waters, while making use of the opportunity to urge upon large employers a conciliatory Christ-like attitude & the recognition of the trusteeship of wealth as suggested in the parable of the ten talents, and endorsed by modern philosophy.

I realize how easily in times of ferment one’s views may be misquoted as were yours last winter & trust you will believe me ever determined to be both scientific and judicial though earnest in treating these great problems & that you will always wait to hear both sides before judging.

Very sincerely yours

[signed]
Edward W. Bemis

 

Source:   University of Chicago. Office of the President. Harper, Judson and Burton Administrations. Records, Box 11, Folder #4 “Bemis, Edward W., 1892-1895”, Special Collections Research Center, University of Chicago.

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From handwritten letter from J. Laurence Laughlin to President William R. Harper, Aug 1894

Newman, N. Y.
Aug. 6, 1894

Dear Pres. Harper,

[…]

This recalls Bemis. I fear the affair in Dr. Barrows’ church has been a last straw to some good friends of the University, like A. A. Sprague. And in antagonizing Pres. Hughitt he is quaking very hard the establishment of a great railway interest in the University. And Bemis is wholly one-sided on this railway question. I have looked into it, but I could do nothing without throwing out all his railway lectures. This was sometime ago. At every turn in Chicago, in July, I heard indignant remarks about Bemis, & I had nothing whatever to do in introducing the subject. I know you have done what seemed best to stop him; and Small has told me regretfully how he somewhat spoiled your arrangement; but in my opinion, the duty to the good name of the University now transcends any soft-heartedness to an individual. I do not now see how we can escape saving ourselves except by letting the public know that he goes because we do not regard him as up to the standards of the University in ability and scientific methods. It would have been better for him to have gone quietly. You probably know he told Small that his hold on the working classes was so strong that the University dare not drop him—or something to that purpose. I believe you will find the Extension men of my opinion—certainly Mr. Butler.

At any rate, I see Bemis is no longer in my department: and I understand that his economic lectures will not be announced next year by the Extension Division. The labor subjects will be covered by Brooks. As regards the money lectures, I have a suggestion. How would it do to tie to us in this way Prof. Kinley, of the University of Illinois? Is it feasible? Could he not be asked to give 6 or 12 lectures on money, appear in our list as an Extension lectures, & yet hold his position at Champaign? His work is of a radically different kind from Bemis’, & yet he was one of Ely’s men. You can also get Miller’s idea of Kinley. I quite like him; & he would, I think, welcome getting closer to us. His book on the “Independent Treasury” is quite good. This is only a suggestion. If it is worthless—then better no lectures at all on money than those Bemis gives.

[…]

Sincerely yours,
Laurence Laughlin

Source:   University of Chicago. Office of the President. Harper, Judson and Burton Administrations. Records, Box 57, Folder #13 “Laughlin, J. Laurence, 1892-1917”, Special Collections Research Center, University of Chicago.

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From “Prof. Bemis’ Secret Out.”
Chicago, Ill., Aug. 17 [1895]
(Special Correspondence to The Voice]

… “President Harper and certain wealthy trustees of the university have at sundry times indicated to Professor Bemis that while his work was not radical nor inappropriate for universities in general, there were inflections of truth which the University of Chicago could utter more gracefully and sincerely than the principles of practical economics. It was not desirable, they intimated, for this institution, with its own particular way of being born and nurtured, to be in close touch either with the labor question or with municipal and monopoly problems.

In the presence of Professor Bemis’ success as a member of the university faculty, and in the absence of any enlightenment as to the cause of his “resignation,” people generally have had the effrontery to imagine that the fact that the president of the big Standard Oil Combine has been a heavy benefactor of the university, has in some way had something to do with the peculiar pedagogical disability hinted at from time to time by President Harper.

But members, attachés of the University of Chicago, are not the only persons who have been unable to appreciate the naïve and reckless manner in which Professor Bemis has neglected to obscure the facts of the new political economy. The manager of the consolidated gas companies of this city refused, a short time ago, to allow to the university the customary reduction in gas rates, because Professor Bemis was a member of the faculty. A prominent officer of the largest gas trust in this country—a trust controlling the gas supply in over 40 cities—said to Professor Bemis not long ago: “Professor Bemis, we can’t and don’t intend to tolerate your work any longer. It means millions to us. And if we can’t convert you, we’re going to down you.” Such intellectual discharges, considered in connection with President Harper’s eloquent silence and capital’s fraternal relations to the university, are not absolutely meaningless…”

 

Source:   University of Chicago. Office of the President. Harper, Judson and Burton Administrations. Records, Box 11, Folder #4 “Bemis, Edward W., 1892-1895”, Special Collections Research Center, University of Chicago.

 

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President Harper’s Statement
From a Convocation Address at the University of Chicago, Oct. 1 [1895]

From the beginning the university has believed in the policy of appointing to positions in the same department men who represent different points of view. No instructor in the university has been or will be asked to separate himself from the university because his views upon a particular question differ from those of another member of the same department, even though that member be the head.

From the beginning of the university, there has never been an occasion for condemning the utterances of any professor upon any subject, nor has any objection been taken in any case to the teachings of a professor, and in reference to the particular teachings of an instructor no interference has ever taken place.

The university has been, in a conspicuous way, the recipient of large gifts of money from wealthy men. To these men it owes a debt of sincere gratitude. This debt is all the greater, moreover, because in absolutely no single case has any man, who has given as much as one dollar to the university, sought by word or act, either directly or indirectly, to control, or even to influence, the policy of the university in reference to the teachings of its professors, in the departments of political economy, history, political science or sociology. To be still more explicit, neither John D. Rockefeller, Charles T. Yerkes, Martin A Reyerson, Marshall Field, Silas B. Cobb, Sidney Kent, George C. Walker, nor any other benefactor of the university, has ever uttered a syllable or written a word in criticism of any theory advocated by any professor in any department of the university.

This public statement is made because the counter statement has been published, far and wide, and because it is clear that a serious injury will be done the cause of higher education if the impression should prevail that in a university, as distinguished from a college, there is not the largest possible freedom of expression—a freedom entirely unhampered by either theological or monetary considerations.

 

Source:   University of Chicago. Office of the President. Harper, Judson and Burton Administrations. Records, Box 11, Folder #4 “Bemis, Edward W., 1892-1895”, Special Collections Research Center, University of Chicago.

 

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Bemis sends three clippings to Walter F. Willcox of Cornell

477 Dearborn St.
Chicago
Oct. 25 [1895]

Dear Professor Willcox:

Please show the enclosed, which I send at your request to Prof. Jenks & write me what you both think.

Very sincerely
[signed]
Edward W. Bemis

*  *  *  *  *

Chicago Chronicle
Oct 9, 1895

The controversy between Professor E. W. Bemis and the University of Chicago faculty and officials have led the dismissed instructor to issue a public statement giving his side of the matter. It is the first direct expression he has made since the trouble arose. Professor Bemis is to lecture at the University of Illinois four days next week, when it is expected that he may give public utterance to his views. The statement is as follows:

“Despite the urgent advice of many and the demand for the facts from the greater portion of hundreds of editorials in newspapers which have been sent me I have hitherto refused to publish the reasons for my leaving the University of Chicago. To injure the university or to have newspaper notoriety is as distasteful to me as to dwell on my personal relations with a great institution.

“The University of Chicago is doing an important work, and throughout the country there is sympathy with all our great universities which I would not wish in any way to disturb.

“During my three years’ connection with the university my personal relations with the president and my colleagues in the sociological department, where I have done all my work the past year and more, were always pleasant. But President Harper’s emphatic denial at convocation, Oct. 1, of any interference with college independence by Mr. Rockefeller, Mr. Yerkes and other donors is producing the natural and apparently intended inference that the university had other and justifiable grounds for my dismissal.

REFUTES HARPER’S STATEMENT.

“I have also since Oct. 1 had conclusive evidence that the president is privately stating that I leave because incompetent. Silence is no longer possible, not alone from personal considerations, but because the vital principle of college freedom is also at stake.

“It has been stated by some influential papers on the authority of the president himself, as I am reliably informed, that I was engaged at the University of Chicago for a period of three or five years, and that period having expired the university simply did no renew the appointment.

“I desire to deny emphatically the truth of this statement. In none of the negotiations between the university and myself respecting my coming to the university was there a single word as to any limit of time.

“I was to devote at first two-thirds of the college year to university extension. But I insisted, as a condition of leaving what all assured me was practically a life position at Vanderbilt university to go to Chicago in 1892, that I should not only have one-third of the year for inside or class teaching, but that I should have a gradual increase of it. Both the presidents and the heads of the departments of economics and sociology gave me this assurance, as has often been admitted. Jan. 5, 1894, President Harper wrote me: ‘I hoped that as time passed there would be opportunity for your doing a larger amount of work in the university proper.’

ASKS HARPER TO EXPLAIN.

“Now what I wish the president to do is not to give a general denial of Mr. Rockefeller’s having criticized ‘any theory advanced by any professor,’ but to explain why the above ‘hope’ and understanding were not carried out, and what he meant by the following in the letter above quoted: ‘Instead of the opportunity becoming better for work on your part in the university proper, the doors seem to be closing. * * * I am persuaded that in the long run you can do in another institution, because of the peculiar circumstances here, a better and more satisfactory work to yourself than you can do here. I am personally very much attached to you. You are, however, man of the world enough to know that, unless one is in the best environment, he cannot work to the best advantage. You are so well known and your ability so widely recognized that there will be surely no difficulty in securing for you a good position, one in which you will be monarch, and one in which you will be, above all things else, independent.’

“I have never had occasion to doubt the president’s implication above that ‘the peculiar circumstances,’ and the ‘environment’ at the university were the true explanation of its action.

“On receipt of this letter I should have resigned had I not very soon been led to believe, erroneously as it proved, that the situation was improving.

“I very much regret the necessity of publishing this and other letters and conversations which, while not considered confidential, would not under any ordinary circumstances, be made public by me.

ASSOCIATES SATISFIED.

“I cannot have been dropped because of dissatisfaction on the part of my associates, for on Aug. 7, 1895, President Harper emphatically declared that the head of the economic department was not responsible for my going, and that the head of the sociological department had, almost to the very end, ‘pleaded for’ my retention.

“I cannot have been dismissed because personally not agreeable to the president, for his letter above quoted states: ‘I am personally very much attached to you.’

“Neither can the university’s action have been due to failure in my university extension work, which was done with constantly growing and, with the exception of a few places the first year, with almost uniform success. In judging of the success of extension courses designed to be educational in character, in economics and sociology, due regard must be had to the fact that the subjects do not appeal to so many of the usual supporters of extension courses, chiefly women, as do literature and history.

“In November and December, 1894, my extension work kept me busy nearly every night, and at least one long engagement had to be refused on this account. Yet in the face of my most popular and really most successful university extension season, my name was dropped from the budget or salary list by the trustees Christmas week, 1894, to take effect the following summer. The singular fact that I was not informed of the above action until March 7, 1895, more than two months afterward, I pass without comment.

NOT LACK OF ABILITY.

“President Harper’s reasons for dropping me could not have been lack of ability or personal character, for Sept. 29, 1894, after observing my work for two years, he wrote me: ‘I have great respect for you and your work.’ In view of this written statement, I cannot understand his recent private declaration that I was dropped for incompetency.

“March 7, 1895, speaking of the reason for my going he said: ‘It is not a question of competency; simply, the general situation is against you here. Of course you are an A No. 1 man, just as much as when we got you, but you are a misfit here.’

“I cannot have been dropped because of dissatisfaction with my classroom work, for Professor Small, under whom I carried on all my extension work and my spring and summer courses of class work in 1894 and 1895, to constantly growing classes of seniors and graduate students, has repeatedly declared to others and to myself that there was no fault or criticism of my class work.

“A considerable portion of my students have taken a second course with me, and I invite the fullest inquiry among them all as to my work. Their attitude was shown in an editorial in their organ, the University of Chicago Weekly, Aug. 1, 1895: ‘His work here has been of the best.’ The president’s comment to me on Aug. 7 last was: ‘Students don’t count. Anybody that knows how can get around students.’ Yet many of my pupils were graduate students and even teachers elsewhere. Again, I repeat, that only the most extreme provocation has overcome my great reluctance to publish such conversations.

QUOTES A LETTER.

“In this connection, I am permitted to quote the following letter to Dr. Charles B. Spahr of the Outlook, written Aug. 27, 1895, by the chancellor of Vanderbilt university, Dr. James H. Kirkland:

“It affords me greatest pleasure to testify to the high character of Professor Bemis’ work at Vanderbilt university. He had a strong hold upon his Students and was regarded by them as an unusually able and strong instructor. I give this communication cheerfully and without reserve. You may make whatever use of it you wish.’

“I am not a socialist, but I am a believer in the wisdom of a gradual taking over of some of our local monopolies by cities, as in Glasgow and Birmingham, but have never urged that it should be done at once in all places, and have held that many cities cannot be urged to go further at present than the leasing for moderate periods, as has been done with the street car lines in Toronto, Canada, with ample provision for city ownership on easy terms at the close of the lease, if then desired by the citizens. Yet the then president of the so-called gas trust of Chicago refused in 1893 to render a financial favor to the university because I was on the faculty. President Harper has since denied that he was influenced thereby.

“The manager of the largest aggregation of gas capital in America, outside of Chicago, referring to my monograph in the publications of the American Economic association, and to other writing on municipal gas works, such as in the February, 1893, issue of the Review of Reviews, declared to me in the summer of 1893: ‘If we can’t convert you we are going to down you. We can’t stand your writing. It means millions to us.’

HIS AID SOLICITED.

“As illustrative of how my work is regarded by many prominent businessmen acquainted with it, I may add that some weeks ago so conservative a magazine as the Bibliothecra Sacra, whose sociological department is edited by a conservative businessman of Chicago, asked me to become an associate editor.

“In an interview March 13, 1895, as at other times before and since, President Harper fully agreed with my assertion that I was not radical, and that it was true conservatism to favor moderate social changes; but when I asserted that the university ought to be in close touch with the labor question and with municipal and monopoly problems in the way I had been trying in a moderate spirit, in the Civic Federation and elsewhere, to effect, he replied: ‘Yes, it is valuable work, and you are a good man to do it, but this may not be—this is not the institution where such work can be done.’

“I spoke in the First Presbyterian church of Chicago July 15, 1894, in condemnation of the great railway strike, but ventured to suggest that the railroads had also been law-breakers in the past and should set a better example. Realizing the gravity of the situation and my position in the university, I spoke from carefully prepared manuscript, and can publish it, if any doubt the general verdict of very prominent men in the congregation who have commended its moderate tone. The only sentences afterward criticized were these:

“’If the railroads would expect their men to be law-abiding they must set the example. Let their open violation of the interstate commerce law and their relations to corrupt legislatures and assessors testify as to their part in this regard. I do not attempt to justify the strikers in their boycott of the railroads; but the railroads themselves not long ago placed an offending road under the ban and refused to honor its tickets. Such boycotts on the part of the railroads are no more to be justified than is a boycott of the railroads by the strikers. Let there be some equality in the treatment of these things.’ The rest of the address criticized the strikers more than their employers.

OFFERS THE PROOF.

“A prominent railroad president, immediately after the dismissal of the congregation, challenged me for proof of boycotting and I replied that not only were the newspapers full of such things, but I had proof in my study which I would send him in writing. He said: ‘It is an outrage. That a man in your position should dare to come here and imply that the railroads cannot come into court with clean hands is infamous.’ He complained to one or more trustees and to President Harper. The latter then wrote me, July 28, 1894: ‘Your speech at the First Presbyterian church has caused me a great deal of annoyance. It is hardly safe for me to venture into any of the Chicago clubs. I am pounced upon from all sides. I propose that during the remainder of your connection with the university you exercise great care in public utterances about questions that are agitating the minds of the people.’

“In view of this letter of President Harper, I am at a loss to understand the statement he made at convocation: ‘From the beginning of the university there never has been an occasion for condemning the utterance of any professor upon any subject.’

INFLUENCE OF MONEY.

“The benumbing influence of a certain class of actual or hoped-for endowments, whether this influence is directly exerted by donors or only instinctively felt by university authorities and instructors, is a grave danger now confronting some of the best institutions.

“A wealthy and leading trustee of the university spoke to me in 1893 of ‘our side’ in some club discussion of a noted strike. By ‘our side’ you mean–?’ I asked. ‘Why, the capitalists’ side, of course,’ was the quick reply.

“To a gentleman of unquestioned veracity the president, when referring to me, said in substance: ‘It is all very well to sympathize with the workingmen, but we get our money from those on the other side and we can’t afford to offend them.’

“The name of the last gentleman quoted cannot be given to the public or to the university, but he is ready to assert the truth of the above to any disinterested and honorable gentleman the president may name.

“President Harper, as the press has intimated, has privately claimed that by speaking he can ruin me, and that he is keeping quiet on my account. It is time that these innuendoes ceased.

“Altogether aside from my personal interest in the question is the far larger issue of the subjection of college teaching to any lower aims than the pursuit of truth.”

*  *  *  *  *

DR. HARPER REPLIES.
ANSWERS PROF. BEMIS’ CHARGES
Chicago Record, Oct. 18, 1895.

Says the Lecturer’s Financial Failure Was Alone Responsible for His Retirement from the University of Chicago—Letter in Full

President William R. Harper of the University of Chicago has written a reply to the statement made by Prof. Edward W. Bemis which was published in The Record Oct. 9.

The following is Dr. Harper’s reply in full, exactly as the president of the university, with the assistance of Prof. Albion W. Small, head professor of sociology, and Prof. Nathaniel Butler, director of the university extension department, prepared it:

“In view of the desire of the public as manifested in various ways to know the facts in reference to the work of Mr. Bemis as a university extension associate professor in the University of Chicago, and in order to remove certain impressions which his letter of a recent date occasions, we, who have been from the beginning most thoroughly conversant with the facts, and, indeed, connected officially with his work, desire to make the following statement:

“1. Mr. Bemis’ position in the university from the beginning has been that of a university extension associate professor, the understanding being that his work should be largely in this department, since his services were not needed in the class work of the university proper, in view of the large number of professors there employed.

Attendance at Lectures Decreased.

“2. During the first year (’92-’93) of his connection with the university he delivered fifteen courses of extension lectures. During the second year (’93-’94) he gave seven courses. During the third year (’94-’95) he gave six courses of lectures. It was a striking fact that, except in one instance, Mr. Bemis never returned to an extension center for a second course. In his course given during ’94-’95 in Joliet on ‘Questions of Labor and Social Reform’ the attendance at the first lecture was 124; second, 108; third, 76; fourth, 79; fifth, 75, and sixth, 44. The actual earnings of Mr. Bemis in university extension work were about $1,000 a year, his salary being $2,500 a year. A portion of this salary, it is true, was paid him for courses offered in the university proper, but he was permitted to offer a larger number of courses in the university than he would otherwise have done, because the administrative officers of the extension division were unable to persuade university extension centers to avail themselves of his lectures. It should be added that no man who has ever given a dollar to the university has ever directly or indirectly entered objection to the views taught by Mr. Bemis in his lectures; and that so far as the university knows, his teaching upon subjects of municipal reform, trusts, etc., are teachings to which the authorities would not think of interposing objection.

“3. In no discussion of Mr. Bemis’ relations to the university, between ourselves as officers of the university or with the president of the university, has the question of Mr. Bemis’ views on questions of political economy or sociology been raised. Mr. Bemis himself acknowledged in our presence early in August, 1895, that he was then convinced that no outside pressure had been brought to bear in reference to his resignation.

Dependent on the Fees.

“4. The simple fact is that the university extension division, which at present has no regular endowment to pay the salaries of professors engaged in this particular work, is dependent upon the fees received from the lecturers for the money with which to pay the salaries of such lecturers. Inasmuch as the officers of the department were not able to make arrangements with extension centers for Mr. Bemis to lecture before them it was evident from a business point of view that the work of Mr. Bemis in this division of the university must cease.

“5. The president’s letter to Mr. Bemis, in which he expressed cordial good will and appreciation of his ability represented the feelings of all who were associated with Mr.

Bemis at that time. It was, however, the opinion of the head of the university department in which Mr. Bemis worked, and of the director of the university extension division as well as the president, that Mr. Bemis could find a better field for his work in a smaller institution, in which he could be free to confine his teaching to the class-room, and not be dependent upon the general public through university extension centers.

“6. The letter of President Harper to Mr. Bemis in reference to his remarks in the First Presbyterian church was written at a time when the citizens of Chicago were in great anxiety because of the disturbed condition of affairs. It should be noted that President Harper’s request that Mr. Bemis should exercise care in his statements was not made with reference to any utterances which Mr. Bemis was making in university work or in a university extension lecture, but in an outside capacity before a promiscuous audience. This was, as already intimated, at a time when agitation of any kind was universally regarded as imprudent. It should not even then take issue with Mr. Bemis on any ‘doctrine,’ but that he requested him to be careful about making untimely and immature statements.

“7. Mr. Bemis was more than a year ago given to understand that it seemed desirable for the reasons recited above, that he should seek another field of usefulness. This intimation was made and was apparently received by him in the kindest spirit, and efforts were made on the part of the University of Chicago to secure him a position better adapted to his abilities. One of several such positions might have been secured had not Mr. Bemis himself by his public attitude rendered it out of the question that these positions should be offered him. We refer later to influences which may account for the unfortunate light in which Mr. Bemis allowed his personal affairs to be presented. The whole case is one in which a university instructor is found to be not well adapted to the position which he holds. Such cases arise almost continually in universities. In almost any other department of instruction than the one in which Mr. Bemis occupied a position such a case would attract no general comment, nor would it be regarded as involving injustice to the instructor. It was perhaps inevitable that Mr. Bemis’ department of teaching, and the fact that the University of Chicago has been generously endowed by private munificence, would occasion the construction which has been put upon this matter. That construction, however, is absolutely without foundation in truth.

As to Another Position.

“8. Mr. Bemis’ real complaint was not that he was asked to resign from the university extension staff, but that he was not transferred to a corresponding position on the staff of instructors inside the university. We state now only our opinion when we say that, so far as we are able to judge, every member of the faculty who is acquainted with Mr. Bemis would indorse the president’s conclusion that such transfer would have placed Mr. Bemis in a position which he is not strong enough to fill. Mr. Bemis dissents from this opinion and repeatedly urged the head of the department of sociology to recommend his appointment as a member of the sociological staff. The answer had to be made that if the trustees would appropriate money without limit to the sociological department, work might be assigned to Mr. Bemis which would be important and valuable in itself, but that the money which would be available for some time to come was much more needed for kinds of instruction which he was not competent to give.

“Some of the elements which entered into the failure of his extension work would be fatal objections to a university instructor. In attempting to be judicial he succeeded in being indefinite. Instead of erring by teaching offensive views the head and front of his offending was that he did not seem to present any distinct views whatever.

“9. We have urged President Harper, throughout the campaign of abuse which has been waged during the last summer, not to depart from his purpose of silence respecting the reasons which led him to call for Mr. Bemis’ resignation. We know that President Harper was more considerate of Mr. Bemis than the latter knew how to be for himself. We had and still have the most friendly feelings for our former associate and agreed with President Harper that the university could afford to suffer rather than cause needless injury to an individual by publication of facts which a discreet person would wish to suppress.

Believes Bemis Was Influenced.

“10. We have changed our view of what is just to all interests concerned, because we are obliged to believe that the prominence which this case has attained through the press is not the result of misunderstanding, but that it is the carrying out of a deliberate design to misrepresent the facts. We believe that Mr. Bemis has received advice which has made him the tool of private animosity toward the university, under the mistaken notion that he is vindicating his violated rights. Our reasons for this view are in part as follows:

“Soon after Mr. Bemis was informed, more than a year ago, that his services were no longer desired by the university, one of the signers of this paper was notified by a friend of Mr. Bemis, first by letter and afterward verbally, that ‘If Prof. Bemis is not retained a newspaper agitation will be begun from which the university will not recover in a generation.’ The reply was that if this was intended as a threat, no more direct means could be taken to hasten the termination of Mr. Bemis’ connection with the university. That it was intended as a threat was evident from the response that ‘the newspapers are all ready to begin the attack if Bemis is sent away, and the University will drop him at its peril.”

“The name of the person who made the threat has repeatedly crept into the published statements for which Mr. Bemis has been directly or indirectly responsible. Both Mr. Bemis and his mentor have refused to act in accordance with the positive testimony of those who knew the facts and have persisted in misconstruction of indirect evidence to suit their purpose of detraction. We therefore think it our duty to the university to add these things to previous official statement in behalf of the university.

Compelled to Discuss the Case.

“11. To summarize, Mr. Bemis has compelled us to advertise both his incompetency as a university extension lecturer and also the opinion of those most closely associated with him that he is not qualified to fill a university position. We wish to make the most emphatic and unreserved assertion which words can convey that the ‘freedom of teaching’ has never been involved in the case. The case of Mr. Bemis would have been precisely the same if his subject had been Sanskrit or psychology or mathematics.

“12. As final evidence that the university had no quarrel with Mr. Bemis’ ‘doctrines’ we add that the university offered to continue to announce Prof. Bemis’ extension courses in the university lists to give him all possible assistance to make lecture engagements, Mr. Bemis to retain all the fees, without the customary deduction for office expenses. This offer was to hold good until Jan. 1, 1896, and Mr. Bemis did not decline it until August 1895. Had he not chosen to represent himself as a martyr he might have been lecturing today under the auspices of the university, although on his own financial responsibility.

Albion W. Small,
“Head Professor of Sociology.
Nathaniel Butler,
“Director the University Extension Division.”

Concurred in by President Harper.

“The above has my concurrence and approval. I think that this recital of facts will be sufficient to assure all candid persons who have become interested in the case, first, that no principle has been involved about which there was occasion ro public solicitude; second, that the university was guarding Prof. Bemis’ interest in attempting to avoid the necessity of publishing an official judgment about the value of his services.

William R. Harper, President”

Chicago, October 16, 1895.

Source:  U. S. Library of Congress, Manuscript Division. The Papers of Walter Willcox, Box 3, Folder “General Correspondence A-C”.

*  *  *  *  *

The above statement was prepared and put in type for the purpose of submitting it to the trustees and leaving the question of its publication to their decision. The proofs of the statement were stolen from the University printing office and given to the public. The employé who committed the theft has been discovered and discharged. If it had been decided to publish the statement, the phraseology would probably have been somewhat changed, and certain additions would have been made. The statement, however, as it was published, is correct. Under the circumstances it seems proper to add the following:

  1. The statement placed in my mouth: “It is all very well to sympathize with the workingmen, but we get our money from those on the other side, and we cannot afford to offend them,” I absolutely deny. I have never even entertained the thought implied in the statement. The University has received contributions from hundreds of workingmen. One, however, can feel no sympathy with those agitators who draw lines between the rich and the poor and seek to array them against each other. It is, of course, true that the president of a university could have no wish to offend the patrons of his institution. But the patrons of the University embrace all classes in the community. The issue raised is an entirely false one, and based on charges without the shadow of a foundation.
  2. Mr. Bemis, recognizing that there was no longer a work for him to do in ordinaryUniversity Extension, proposed that the University pay his salary and allow him to work in the city in connection with the Civic Federation and other public and charity organizations, this work being, as he suggested, University Extension work in a broad sense. To thisproposition it was, of course, necessary to reply that it was a valuable work, and he a good man to do it, but that it was a kind of work which the University could not undertake.
  3. It is understood that when an instructor withdraws at the request of the University, his case shall, in no instance, be prejudiced before the public. The University will assist him in every possible way. The real facts in the case of Mr. Bemis would, under ordinary circumstances, never have been given to the public. In the convocation statement care was taken to utter no word which would in the slightest degree injure him. His recent publication of abstracts of letters, in which the facts were grossly misrepresented, has made this statement necessary.
  4. Once more it is desired to say that neither the expressed nor the supposed wishes and views of the patrons of the University have had anything to do with the case in hand. It has been merely a question of finance, in the effort to bring the expenditures of the division of University Extension within its income. There is not an institution of learning in the country in which freedom of teaching is more absolutely untrammeled than in The University of Chicago. The history of the University during its first three years is sufficient guarantee to those who will examine into it that the policy of the Trustees of the University in reference to this whole subject will not be changed.

William R. Harper.
October 21 [1895]

 

Source:   University of Chicago. Office of the President. Harper, Judson and Burton Administrations. Records, Box 11, Folder #4 “Bemis, Edward W., 1892-1895”, Special Collections Research Center, University of Chicago.

*  *  *  *  *

PROF. BEMIS’ DEFENSE.
REPLY TO PRESIDENT HARPER.
Chicago Record, Oct 19, 1895

The Professor of Sociology Makes Vigorous Rejoinder to the Head of the University of Chicago—Chance for Harper to Explain.

The celebrated case of Harper vs. Bemis was given an interesting airing exclusively in the columns of The Record yesterday, the plaintiff filing his brief, as it were in reply to the statement of the defense which appeared in The Record Wednesday, Oct. 9. Now comes Prof. Bemis, the defendant, with a vigorous rejoinder, which he prepared for The Record last evening and which is reproduced in full.

“When I issued my first statement, Oct. 9, I realized the limits to which the university might go in seeking to reply, for on Aug. 7 President Harper said to me: ‘If I speak you will be damned forever. If we say we did not like you here you can’t get another college place in America.’ He then made some such denial of monopoly influence as at convocation and, having held up a sufficiently frightful fate in store for me, said: ‘I have a stenographer waiting in the next room. I desire to call him in have you make a statement to the public at once that proof has been shown you (for I have said so, and you don’t believe me a liar) that you were entirely mistaken in supposing that monopoly influence had anything to do with your leaving here.’

“It is possible that in the excitement of the moment I admitted a general belief in the truthfulness of the president, but I declined to sign such a statement, saying, however, that I was willing to state that he then denied monopoly influence.

“’Oh, that will do no good,’ he replied; ‘people won’t believe it. They would say that of course I would deny it.’

“But, while I realize the seriousness of the situation, I cannot rest under such unfounded charges of incompetency as are publicly made, with the president’s indorsement, this morning, and which I first learned of on my return to Chicago this afternoon.

Charges Answered Seriatim.

“Time at my disposal does not admit of an adequate reply, but a few things must be said:

“1. With regard to my university extension work. In order to make up a case against me the attendance at Joliet is given, showing a marked falling off the last night as compared with the first. Now, as I have repeatedly stated, this is the one and only center among all the ten where I gave twelve courses in 1894 where there was want of enthusiasm in my work. On the first night at Joliet, if I remember correctly, many complimentary tickets were issued, while the last lecture was suddenly and without due notice changed to another evening in the week to enable courses to begin elsewhere.

“That was the place, too, which complained that I too much avoided making positive statements. It was the first place where I lectured after receiving that letter from President Harper quoted in my previous statement and ending with ‘I propose that during the remainder of your connection with the university you exercise great care in public utterances about questions that are agitating the minds of the people.’ From even Joliet, however, business men have come to me unsolicited to tell me how much they valued my course.

Opinions of the Lectures.

“Relative to a course in Washington, Iowa, early in 1894, the secretary of the center, the Rev. Arthur Fowler, wrote, Feb. 24, 1894, to the head of the university-extension department of the University of Chicago: ‘Nothing but favorable reports have been given of Prof. Bemis’ lectures. He is well liked here.’ To another he wrote, June 8, 1895: ‘Our engagement with Mr. Bemis was entirely satisfactory. The audience increased with each successive lecture. He did us much good.’

“Relative to a course given in Quincy, Ill., early in 1894, the secretary of the center, Edwin A. Clarke, wrote the head of the University of Chicago extension department, March 19, 1894: ‘The course given us by Dr. Bemis has been to those few who attended the lectures the most interesting and valuable of any we have had so far.’

“Relative to a course at Mason City, Iowa, in the fall of 1894, the Rev. C. C. Smith wrote a gentleman in Montana:

“ ‘In the beginning we had considerable fears as to the result, because of the difficulty we have had in making anything in the line of lectures succeed in this town. Now, however, the success of another course is insured, the enthusiasm is great, and this is due wholly to Prof. Bemis as a man and to the excellency of his lectures. He is a teacher, clear, concise, conclusive. His lectures bristle with facts and figures up to date and each has a point and pertinency to the present pressing problems. His patriotism is free from party prejudice, so far, at least, as his lectures are concerned.’

More Words of Praise.

“Relative to two courses at Burlington, Iowa, in the fall and early winter of 1894, the secretary, E. M. Neally, wrote the University of Chicago:

“ ‘We believe Prof. Bemis to be unusually qualified for this sort of work and the desire has even been expressed that we may arrange for a further course by the same lecturer at some future date.’

“In a letter in August, 1895, to a large newspaper Mr. Neally wrote:

“ ‘Having had occasion, as secretary of the Burlington center, to look into the record of Prof. Bemis’ work at various centers, I find it almost invariably described by the secretaries as very successful. No adverse criticism from any local secretary has ever come to my notice.’

“The secretary of the Waterloo (Iowa) center wrote to an inquirer relative to my course there in 1894:

“ ‘His audiences were attentive and the numbers kept up. Prof. Bemis, in my individual opinion, has the right idea of the extension lecture and carried it out.’

“Relative to a course at Osage, Iowa, in the fall of 1894, the Rev. W. W. Gist, secretary of the center, wrote the university Jan. 2, 1895: ‘Dr. Bemis gave us a good, strong course of lectures here.’

“In short, I can quote favorable letters from the secretaries of at least eight of my ten centers in 1894 and from a good proportion of those in the preceding years.

An Error Corrected.

“It is claimed that I never returned to an extension center for a second course, save one. In fact, I did so three times, for I gave twelve lectures at Burlington and two courses to the wage-workers of Chicago. To be sure, the Burlington center engaged the two courses at the start, but they did not manifest the slightest regret over this when the first six lectures were finished. One of the other extension lecturers, who is retained in full favor, was only recalled a second time to three centers prior to this fall, and two prominent officials in the office tell me that it is customary to advise a place not to recall the same lecturer for some time, but to try variety.

“The university has always claimed that its extension work was scientific and worthy of indorsement by a great university because of its strictly educational features. Yet the university now attempts to apply rigid financial tests, as though the extension lecturers must return to the university in fees all their salary, as in a girls’ ‘finishing’ school. March 7 last President Harper told me that every lecturer must earn his own salary in this work. Such conditions were never mentioned to me when I agreed to take hold of the work.

The Financial Account.

“Yet, as a matter of fact, prior to Christmas week, 1894, when the trustees dropped me from the salary list, to take effect this last summer, the university had paid me only $5,625 and had received from my extension fees about $3,600, and the salary for my two and one-half quarters of inside work equaled the entire balance of the $5,625. Though the university now states that some of my inside work was given simply to atone for some lack of extension courses, it certainly was not true of any of the above, however true it may have been of my work in July and August of this year. During 1894 the university received in fees for my work $1,335 or more than my salary for that part of the year devoted to extension work, and as given in my previous statement my last two months of work before the action of the trustees Christmas week, 1894, were crowded with courses, and these the most successful I had ever given.

A Breach of Agreement.

“2. The university does not deny that the understanding under which I came was that I should have a gradual increase of inside or class teaching. Neither does the president explain what he meant in his letter of Jan. 15, 1894, when he intimated that I had better leave and could not have more inside work ‘because of the peculiar circumstances here,’ adding:

“ ‘You are man of the word enough to know that, unless one is in the best environments, he cannot work to the best advantage. You are so well known and your ability so well recognized that there will be surely no difficulty in securing for you a good position, one in which you will be monarch and one in which, you will be, above all things else, independent.’

“3. As to my inside work—does Prof. Small deny having repeatedly told myself and others, as late even as last August, that he had never had any fault or criticism to find with my class work and scientific writing?

“4. On March 9, 1895, Prof. Small told me: ‘When President Harper claims that I stand in your way he is joking, and you know it.’ I replied: ‘Do you mean that the president is speaking in a Pickwickian sense?’ ‘Certainly I do, and you can see it all the time,’ was Prof. Small’s rejoinder.

“On Aug. 7 last he admitted using that exact language, but said he was joking when he said it! Perhaps a similar humorous interpretation is to be put upon the statement in The Record this morning.

“5. My classes at the university averaged about four students to a class the first year and over ten the last quarter, while I know of other men conducting similar graduate work without criticism at the university to-day, and even in sociology, to classes of one. Although my classes averaged as large in size as did most of the others, they would probably have been larger had not Prof. Laughlin, head of the department of political economy and of my work the first two years, advised students not to elect my courses.

As to Prof. Bemis’ Qualifications.

“6. Since the university has seen fit in a most unjust and unwarranted way to attack my class work, I will quote the following from a letter of one of the most famous economic and sociological teachers and writers of the world, Prof. John B. Clark. He thus wrote to a college president April 27 last:

“ ‘I should like to say that Dr. Bemis has unusual qualifications for giving instruction in sociology in an institution where this branch of science is to be taught in a scientific way. His range of learning is very extensive and his training in economics has been very thorough. He has clear insight and sound judgment. His views are conservatively progressive, and he seems to me to be a safe guide for students.’

“The chancellor of Vanderbilt university, where I was professor for the third year preceding my call to Chicago, wrote April 27 to the same president:

“ ‘I have a very high regard for Prof. Bemis both as a scholar and as a teacher. His work with us was very successful in both respects, and it was a source of great regret that we could not keep him. I wish we were able to call him back again.’

Questions for the President.

“7. Does President Harper deny having told me Aug. 7 that he had decided as he had, despite the fact that the head professor of sociology had ‘pleaded for’ my retention and had used an almost convincing argument therefor?

“I do not find in the statement by the university this morning any denial of the president’s remark to me, March 13 last, that for the university to be in close touch with the labor question and with municipal and monopoly problems in a moderate spirit was ‘valuable work and you are a good man to do it; but this may not be, this is not the institution where such work can be done.’ Indeed, I hardly find a denial of anything in my previous statement except in the implication that what was there quoted of the letters and words of the president relative to the excellence of my class work was not to be taken seriously.

“Too Close to Social Movements.”

“8. On Jan. 15, 1895, Prof. Small told me that I was too much identified with modern social movements, while the necessities of the case forced him in his own lectures to go off more and more into ‘transcendental philosophy.’

“9. Since the university tries to make out my incompetency for inside or class work at so large a university, perhaps an explanation will be given of the statement of Prof. Small, March 7, in the presence of the president, that I was the best man in the country to write books on many of the following—immigration, population, cooperation, profit-sharing, building and loan associations, life insurance, labor organizations, arbitration, factory and other labor legislation, but these subjects were ‘too specialized for university instruction.’

“10. In the university’s statement this morning there is no denial of the absolute contradiction between a letter of the president’s July 28, 1894, and his convocation address. In the former he declares that because of my address at the First Presbyterian church (which was very moderate and wholly true ‘it is hardly safe for me to venture into any of the Chicago clubs,’ and ‘proposes’ that I exercise ‘great care in public utterances’ henceforth. In the latter he states: ‘From the beginning of the university there never has been an occasion for condemning the utterance of any professor upon any subject.’

Peculiar Use of Language.

“11. The president’s peculiar use of language was illustrated by his statement to me March 7, that a signed resignation, which at his request I soon gave, was no resignation, and we could both so state, until he chose to date it, the date being left blank by me at his suggestion.

“12. I desire to deny that my action in making my previous statement was due to the ‘mentor’ that the university seems to have in mind. I had not seen the one I suppose to be referred to for some time and acted contrary to his advice anyway, but in conformity to the advice of all but two of the many prominent friends heard from since Oct. 1.

An Unmade Denial.

“13. It will be noticed that President Harper does not deny having told a gentleman of unquestioned veracity, when referring to me: ‘It is all very well to sympathize with the workingmen, but we get our money from those on the other side and we can’t afford to offend them.’

“14. Another gentleman—one of national and very high reputation—is prepared to assert to any honorable and disinterested third party the president may name that the latter stated to him: ‘I am on the capitalist side. There is where I get my money.’

“In conclusion, and I wish to speak judicially and fairly, I must say that the statement of certain professors, as indorsed by the president, seems to me evasive and disingenuous and not at all worthy of a great institution of learning. I regret, exceedingly, that the unfounded and injust attacks of the university upon my work have compelled me to make the above statement. Edward W. Bemis.”

Source:  U. S. Library of Congress, Manuscript Division. The Papers of Walter Willcox, Box 3, Folder “General Correspondence A-C”.

*  *  *  *  *

DR. HARPER WAS EMBARRASSED.
Chicago Record, Oct 19, 1895

Says That the Statement Signed by Him Was Meant to Be Kept Secret.

Dr. Harper was asked yesterday why he had made answer to Prof. Bemis at this late day, after having declared that he would not notice the professor’s letter.

“I have made no statement,” said the doctor, “and the publication in The Record this morning was embarrassing to me. The matter was prepared for submission to the board of trustees this afternoon, and if they had desired to make it public they could, of course, have done so. But it is unfair to say I have made any public statement concerning the matter.”

“The document published was the one prepared with your knowledge and consent, was it not?”

“Yes, I do not intend to assert that there is anything wrong with the document, but if it had been prepared for the public no doubt many things it does not contain would have been incorporated.”

“In the printed statement it is said that the extension lectures of Prof. Bemis were a failure financially. Does this mean that the extension work is languishing?”

“Not at all. It only means that Prof. Bemis did not succeed, and there was no sense in our keeping him when we could get men who would put money in our treasury instead of being a drag upon us.”

Source: U. S. Library of Congress, Manuscript Division. The Papers of Walter Willcox, Box 3, Folder “General Correspondence A-C”.

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MEMORANDUM OF AGREEMENT between E. W. BEMIS and WILLIAM R. HARPER:
[undated]

  1. Bemis agrees to give Mr. Harper his resignation as University Extension Associate Professor in the University of Chicago, the date to be left blank and to be filled out by Mr. Harper, but not before Mr. Bemis has secured a position in another institution, provided that the date shall in no case be later than July 1, 1896.
  2. Bemis agrees to receive as compensation for his services in the University after July 1, 1895, in case service is rendered, the receipts from such lecture courses as he may give in the Extension Division and the sum of Six Hundred and Twenty-five ($625.00) dollars, for six weeks of instruction during the summer quarter of 1895.
  3. Bemis agrees, in case the above arrangement is carried out by Mr. Harper, to release the University from any obligation to pay him a fixed salary for the year beginning July 1, 1895, should he remain connected with the University during that year.
  4. Harper agrees to carry out the above arrangements in connection with University Extension work and in connection with University work during the summer quarter of 1895.

[Signed by both]
Edward W. Bemis
William R. Harper

 

Source:   University of Chicago. Office of the President. Harper, Judson and Burton Administrations. Records, Box 11, Folder #4 “Bemis, Edward W., 1892-1895”, Special Collections Research Center, University of Chicago.

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Image Source:  Chauncey L. Moore (Springfield, MA) photograph of Edward Webster Bemis from Johns Hopkins Sheridan Libraries, Graphic and Pictorial Collection.