{"1": {"fulltext": "", "height": "3544", "width": "2301", "jp2-path": "outlineofsociale00gunt_0001.jp2"}, "2": {"fulltext": ",0\u00c2\u00b0\\no t L\\ni*\u00c2\u00b0\u00c2\u00ab*\\nV\\n*4/\\n^\u00c2\u00b0v\\nCV o\\nv\\\\\\n^v", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0002.jp2"}, "3": {"fulltext": "", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0003.jp2"}, "4": {"fulltext": "", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0004.jp2"}, "5": {"fulltext": "OUTLINES\\nOF SOCIAL\\nECONOMICS\\nBY\\nGEORGE GUNTON\\nAUTHOR OF TRUSTS AND THE PUBLIC, WEALTH AND\\nPROGRESS, PRINCIPLES OF SOCIAL ECONOMICS, ETC.\\nAND\\nHAYES ROBBI NS\\nDEAN OF THE INSTITUTE OF SOCIAL ECONOMICS\\nNEW YORK\\nD. APPLETON AND COMPANY\\n1900", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0005.jp2"}, "6": {"fulltext": "/4001\\nLibrary of Cor;.: rose\\nTwo Copies Re m ved\\nNOV 13 1900\\nCopyrignt cmiry\\nVT3 vn\\n5*\\nSECOND COPY\\nDelivered to\\nQo\\nORDER DIVISION\\nNOV 171900\\nCopyright, 1900\\nBy George Gunton and Hayes Robbins", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0006.jp2"}, "7": {"fulltext": "PREFACE.\\nThis volume is especially adapted for study clubs, lit-\\nerary and debating societies, and high schools. It may be\\nused independently or, if desired, supplemented with\\nGunton s Principles of Social Economics chiefly, and\\nother works to which reference is frequently made.\\nIt is believed that the method of arrangement will be\\nfound very practical. Dividing the subject into twenty-\\nfour distinct lessons, while it does not forbid a different\\ndivision when circumstances may require it, as in high\\nschool classes perhaps, makes it peculiarly well suited for\\nclubs and societies holding weekly or bi-weekly meetings.\\nBy covering two topics each time, a club holding fort-\\nnightly meetings would complete the course in six\\nmonths; so that this volume is a very convenient basis\\nfor a winter s work. School classes, which must make\\ntheir work conform to the division -$f time by terms,\\ncan easily subdivide or group these lessons according\\nto their requirements.\\nIt should be clearly understood that the present volume\\nis entirely complete in itself, and may be used without\\nreference to supplementary text-books or other litera-\\nture. At the same time, for the sake of those who\\nwish to go more deeply into the subject, references have\\nbeen given in connection with each lesson to appropriate\\nchapters and sections in Gunton s Principles of Social\\nEconomics and various historical and economic works.\\niii", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0007.jp2"}, "8": {"fulltext": "iv PREFACE\\nTo each lesson is appended a number of brief extracts\\nfrom some of the suggested readings, and a series of\\nquestions on the topic, intended either for class work or\\nin preparing programs for club meetings.\\nSpecial attention is called to the extracts from sug-\\ngested readings. These throw interesting and helpful\\nside-lights on the study at every step, besides indicating\\nthe views held by various economists and historians of\\nprominent reputation.\\nA bibliography, giving the prices and publishers of\\nevery book quoted or referred to for collateral reading,\\nappears as an appendix.\\nThere can be no more important group of subjects for\\nstudy by young men and women throughout this coun-\\ntry, whether in school or out, than those treated in this\\nvolume. They deal with problems which lie at the root\\nof intelligent, useful, American citizenship. Therefore,\\nthe constant effort in preparing this book has been to treat\\neach topic in a clear and obvious fashion with familiar\\nillustrations so that every step may be readily under-\\nstood. Especially, the aim has been to give such practical\\napplications of the laws and principles brought out that\\nthe reader will complete his study with a real grip on\\nthe meaning and merits of our increasingly acute eco-\\nnomic, social, civil and municipal problems. This under-\\nstanding is far more important than to know the techni-\\ncal details of government administration or the mechani-\\ncal working of our political system. It is even more im-\\nportant to young American citizens to-day than the schol-\\narship implied in a college degree. In fact, the safety\\nand success of our free democratic institutions depend\\nupon the. education and good sense of the people on the\\ngreat industrial and social questions which underlie and\\ndetermine our opinions and action as citizens.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0008.jp2"}, "9": {"fulltext": "CONTENTS\\nCHAPTER PAGE\\nI. Meaning and Scope of Social Economics i\\nII. How Industrial Life Affects Social Pro-\\ngress 8\\nIII. Wealth 17\\nIV. Production of Wealth 24\\nV. Causes of Production 29\\nVI. Factors and Methods of Production 36\\nVII. Factors and Methods of Production (Con) 47\\nVIII. Consumption of Wealth 55\\nIX. Value or Price 62\\nX. Cost of Production 70\\nXL Distribution of Wealth 81\\nXII. Wages S6\\nXIII. Wages (Continued) 94\\nXIV. Rent 105\\nXV. Interest 112\\nXVI. Profits 119\\nXVII. Socialism 128\\nXVIII. Socialism (Continued) 139\\nXIX. The Single Tax 154\\nXX. Cooperation and Profit-sharing 166\\nXXI. Labor Organizations 176\\nXXII. Labor Organizations (Continued) 185\\nXXIII. Panics and Depressions 193\\nXXIV. Are We Really Progressing 200", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0009.jp2"}, "10": {"fulltext": "", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0010.jp2"}, "11": {"fulltext": "CHAPTER I.\\nMEANING AND SCOPE OF SOCIAL ECONOMICS.\\ni. Early fleaning of Economics. In entering upon\\nthe study of social economics it is necessary to have\\ndefinite idea as to the meaning and scope of the sub-\\nject including, first, the ground it covers second, its\\npractical usefulness third, the point of view from which\\nit should be considered.\\nThe word economics was first used by Aristotle, who\\nmeant the economics of the household, because in that\\nearly, patriarchal stage of society the family was the real\\nsocial group. So that, economics was the science of\\ndomestic economy. Later, with the development of po-\\nlitical institutions, economics was used as applying to\\nthe state, or the economies of government, and hence\\ntook on the name political economy as distinguished\\nfrom household economy.\\nPolitical economy was really intended to convey the\\nidea of economy in the administration of government,\\nthat is, in the collection and expenditure of public reve-\\nnues. This was the idea of Adam Smith, the so-called\\nFather of Political Economy, who published the first\\ngreat work on economics, The Wealth of Nations, in\\n1776.\\n2. Fiodern Social Economics. With the de-\\nvelopment of industry and progress of civilization during\\nthe. nineteenth century the subject has expanded and\\nnow includes not merely the economy in public revenues", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0011.jp2"}, "12": {"fulltext": "2 OUTLINES OF SOCIAL ECONOMICS\\nbut the economy of the production and distribution of\\nwealth, and, finally, everything which affects the indus-\\ntrial and social welfare of the community. In this way\\nit has outgrown the limits of the old name, political econ-\\nomy, and has really become the science of social eco-\\nnomics.\\n3. What It Includes. Social economics, then, in-\\ncludes all questions which affect the industrial and social\\nwelfare of the people. Politics is different from social\\neconomics, but depends upon it.\\nPolitics is public action. It is the public expression of\\nthe wishes or policies of the people, but these wishes and\\npolicies are usually based upon economic considerations.\\nEconomics is in reality the foundation of politics.\\nThus, for instance, whether it is the better statesman-\\nship to annex far-away islands or keep our hands off,\\nto have a protective tariff or free trade, to have bimetal-\\nism or the gold standard, to have an eight-hour working\\nday in factories or permit them to run as long as their\\nowners may decide, to regulate the employment of wom-\\nen and children or leave it entirely to competition, to\\nhave the government own the railroads and telegraphs\\nor let them remain in private hands, to allow sweatshops\\nin our large cities to continue or to suppress them by\\nlaw, these and a multitude of similar questions are\\nproperly political issues, but the wisdom of our decision\\nregarding each of them depends upon understanding\\ntheir effect on the daily life, welfare, conditions and char-\\nacter of the people, and this knowledge is what social\\neconomics aims to give.\\nTherefore, social economics is at the very basis of\\nintelligent, useful citizenship, and to understand it is\\nindispensable to good government where the people rule,\\nas under democracy.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0012.jp2"}, "13": {"fulltext": "MEANING AND SCOPE OF SOCIAL ECONOMICS 3\\n4. flany=Sided Questions. But the questions that\\narise in social economics are not always simple and easy\\nto understand. Frequently they seem complex and puz-\\nzling. There are always seemingly two sides to every\\nquestion; as, for example, a labor strike. The laborer\\ndemands higher wages and shorter hours, because these\\nwill improve his condition. The employer sees it in an-\\nother light. He objects, because the higher wages and\\nshorter working day will increase the cost of running his\\nestablishment and for a time at least make it more diffi-\\ncult to do business. So, too, when the legislature is\\nasked to suppress sweatshops, it is urged to do so in the\\ninterest of humanity, health and decent industrial condi-\\ntions. But, on the other side, it is urged that the poor\\npeople who work in these tenement houses, sweating and\\nsweltering during sixteen or more hours a day for a mere\\npittance, will be deprived of the means of getting even\\nthat scanty livelihood if the law forbids sweatshops. We\\nmeet these differences of view on every hand.\\n5. Right Point of View. Therefore, it is neces-\\nsary first of all to have a correct point of view from\\nwhich to see these matters. Politics can never furnish\\nthis point of view. We must get it from social economics.\\nThe object of all government is the welfare and progress\\nof the people. Therefore, the welfare of the people is the\\npoint of view from which all industrial and social prob-\\nlems should be decided. To go one step farther, it may\\nbe said that the welfare of the public is best reflected in\\nthe welfare of the great wage-earning class, and their\\nwelfare is indicated in general by the amount of wealth\\nand comfort and advantages of higher civilization that\\ncan be obtained for a day s work. Wealth of itself is of\\nno account unless it is consumed and broadens the civili-\\nzation and happiness of the community.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0013.jp2"}, "14": {"fulltext": "4 OUTLINES OF SOCIAL ECONOMICS\\n6. The Great Test of a Public Policy. The real\\nquestion to ask, therefore, in considering the majority of\\nindustrial or political propositions, is, how will it affect\\nthe opportunities and income of the laboring or wage-\\nearning class? If the measure will tend directly or indi-\\nrectly to improve their opportunities and increase their\\nincome, it will almost always increase the prosperity and\\nimprove the character of the whole community. What-\\never helps the income of the laborers sooner or later pro-\\nmotes the possibility of profits in business and prosperity\\nfor all other classes. Indeed, the expenditures of the\\nwage and salary earners furnish much the larger part\\nof the market for the products of industry.\\nThere are two things which really indicate progress\\nand improvement to the working class. One of these is\\na gradual cheapening of the necessaries, conveniences\\nand comforts of life; the other is an increase in wages,\\nwithout any lengthening of the working day. Whatever\\nwill promote either of these movements, by proper eco-\\nnomic means, will promote the progress of society tow-\\nards a higher and better civilization. Industrial pros-\\nperity is the soil in which all the superior phases of social\\nlife grow. Moral improvement, social culture, intellectual\\nadvancement, justice and integrity, broad altruism, and\\na high conception of human life, extending throughout\\nthe community generally, have their root in the subsoil\\nof industrial welfare.\\n7. Definition. Consequently, the laws and condi-\\ntions which govern industrial welfare are at the root of\\nprogress and improvement. Social economics deals with\\nthese laws and conditions. It is the science which treats\\nof man as a producer and consumer of wealth.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0014.jp2"}, "15": {"fulltext": "MEANING AND SCOPE OF SOCIAL ECONOMICS 5\\nSUGGESTED READING.\\nIn Principles of Social Economics, the Preface and\\nChapters I. and II. of Part I.; discussing social progress\\nand the law of social progress.\\nAdditional References. Address of Nicholas Murray\\nButler, Ph.D., before the graduating class of the Univer-\\nsity of Michigan, June 22, 1899, on The Education of\\nPublic Opinion.\\nIn Alfred Marshall s Economics of Industry, Chap-\\nters I., IV., and V. of Book I. defining economics, trac-\\ning the growth of economic science and showing its\\nscope.\\nIn Arthur T. Hadley s Economics, Chapter I., on\\nPublic and Private Wealth, including a sketch of\\neconomic science and pointing out standards of public\\nwelfare.\\nIn My Young Man, by Rev. Louis Albert Banks,\\nD.D., Chapter IX., on My Young Man as a Citizen.\\nEXTRACTS FROM READINGS.\\nGood and Bad Citizens. The political vitality and in-\\ntegrity of a modern state must rest, in the last instance,\\nupon the character and clearness of the political opinions\\nheld by men who are without official station. No admin-\\nistrative vigor and no legislative wisdom can long sur-\\nvive in the vacuum of public ignorance and indifference.\\nA supporting body of opinion is essential to the conduct\\nof legislative or administrative policy, and a serious and\\nhigh-principled opposition is necessary to prevent its\\nexaggeration and abuse.\\nBurke pointed straight at the typical bad citizen when\\nhe described those who think their innoxious indolence\\ntheir security. The man who submits to public imposi-\\ntion to save trouble or trifling expense, or who pays to", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0015.jp2"}, "16": {"fulltext": "6 OUTLINES OF SOCIAL ECONOMICS\\nbe let alone/ or who, priding himself upon his integrity\\nand business success, affects to despise politics/ is con-\\ntributing his mite to the degradation of government and\\nto the tearing down of the structure so laboriously and\\nso painfully builded by the fathers.\\nAre you politically alert? Are you politically honest?\\nIf not, you are a bad citizen and a corrupter, however\\ninnocent, of public opinion. If so, the standard which\\nyou set is a high one, worthy of imitation. From ad-\\ndress by Nicholas Murray Butler on The Education of\\nPublic Opinion.\\nDuty of Young Men. The individual citizen has no\\nright to be indifferent to the problems of citizenship. If\\nthis is true, then it is the duty evidently of every young\\nman to look well to his own education in citizenship. A\\nman ought to count himself ignorant and uneducated\\nwho does not have on his tongue s end a clear analysis of\\nall the general conditions of the government under which\\nhe lives. I urge upon young men as a most\\nsolemn duty that they read books on political economy\\nand on the functions of government, those comparing\\ndifferent forms of government, and especially those dis-\\ncussing questions of municipal government.\\nAn hour a day devoted to such subjects for the next year\\nwould make any young man a bright, wide-awake, well-\\ninformed citizen, capable of thinking about and discuss-\\ning the public issues of the day with intelligence, and able\\nto find his way through the mists and haze of politics to\\nsensible decisions. The country suffers terribly in its\\ngovernment because a great many of the best class of\\ncitizens, so far as reliability and character are concerned,\\nfail to take that interest in politics, and in the conduct\\nof the government, which they should. From Rev. L.\\nA. Banks My Young Man, Chapter IX.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0016.jp2"}, "17": {"fulltext": "MEANING AND SCOPE OF SOCIAL ECONOMICS\\nQUESTIONS FOR REVIEW OR DEBATE,\\ni. What was the early meaning of economics and political\\neconomy\\n2. Who was Adam Smith? What was his great economic\\nwork?\\n3. What broader aspect has economics gradually taken on?\\n4. How does social economics differ from politics?\\n5. What kinds of subjects and questions are included in social\\neconomics?\\n6. What is the great object of governments?\\n7. On what class of people does the welfare of the community\\nchiefly depend?\\n8. How is the welfare of this class determined?\\n9. What is the great test to apply to proposed reforms or public\\npolicies?\\n10. What two movements or tendencies are necessary to the\\nprogress of the wage-earning class?\\n11. What is social economics?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0017.jp2"}, "18": {"fulltext": "CHAPTER II.\\nHOW INDUSTRIAL LIFE AFFECTS SOCIAL PROGRESS.\\n8. What Progress Is. We are accustomed to talk of\\nprogress as if everybody understood it, whereas few peo-\\nple have any clear idea of what progress really is. How\\nshall we define it, then, so as to know it when we see it\\nHerbert Spencer has well said that progress is change,\\nbut all change is not progress. Then progress must be a\\nchange in a certain direction. Progress in a plant or ani-\\nmals is a change of structure or formation towards a\\ngreater variety of parts or features, and a greater sub-\\ndivision of special activities or functions/\\nThis is true also of communities or races or nations of\\nhuman beings. Progress is a change towards more com-\\nplex relations and a larger variety of interests and ac-\\ntivities. For example, Wild tribes of savages probably-\\nrepresent the earliest form of society, meaning by so-\\nciety the human race associated together in groups, as\\ncommunities, tribes, nations, et cetera. Among these wild\\ntribes is very little variation in the habits, customs and\\nduties of the people. Hunting and fishing and fighting\\nfor protection are practically the only tasks, and every-\\nbody does about the same things. In his Origin of Civ-\\nilization, on the authority of the greatest investigators,\\nSir John Lubbock tells us that in some of the simplest\\ntribes even family life does not exist at all.\\nFrom this to our present state of civilization society\\nhas passed through numberless changes, towards greater\\n8", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0018.jp2"}, "19": {"fulltext": "INDUSTRIAL LIFE AND SOCIAL PROGRESS 9\\nvariety of duties, leading to greater variety of action,\\nideas, tastes, habits, and qualities of character. In this\\nprocess the intellect is sharpened, morals are developed,\\nhuman sympathies expanded, and the social character of\\nman elevated.\\nIn the earliest stage of society we generally find abso-\\nlute despotism and chattel slavery. The members of the\\ncommunity must simply obey the despot. With the\\ngrowth of variety in occupations, interests and expe-\\nriences we find growth of intelligence, desires for new\\nprivileges, and assertion of new rights, until gradually\\nsociety is transformed from a despotism to a state of\\npolitical and religious freedom, education, wealth and so-\\ncial refinement. Progress is the change by which this\\ngreat revolution takes place.\\n9. Cause of Progress. What is the cause of this\\nprogress? How does it arise? We shall see as we pro-\\nceed that all these great changes in industries and poli-\\ntics and social life have their rise in the necessities and\\ndesires of the people. Despotism is overthrown and free\\ngovernment established by the expanding desires of the\\npeople. Nearly always these at first relate to industrial\\ninterests or rights. If we study into the real causes of\\ngreat movements, like the American Revolution or the\\noverthrow of the Stuarts in England, decline of the\\nfeudal system, or the winning of magna charta, we find at\\nbottom industrial motives, or else social motives arising\\nout of industrial interests. These were the moving\\ncauses. There is nothing very strange about this, because\\nindustrial life is the basis of all life. Getting a living is\\nthe first absolute necessity.\\n10. Effects of Industrial Life. It is easy to see\\nwhy, therefore, the character of the occupations and in-\\ndustries of a people has everything to do with determin-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0019.jp2"}, "20": {"fulltext": "IO OUTLINES OF SOCIAL ECONOMICS\\ning the kind of government and general civilization they\\npossess. In simple pastoral life, for instance, where herd-\\ning and hunting were the chief modes of industry, the\\nchief frequently claimed to rule by authority direct from\\na god; that is, the government was a theocracy. The\\npeople would not recognize and obey their leaders and\\nrulers without the force of a superstition like this to con-\\ntrol them.\\nBut with the slow change from pastoral to agricultural\\nlife, where cultivation of the soil became the necessary\\nmeans of getting a living, a variety of new experiences\\narose, A mere roving life became impossible. It was\\nnecessary after planting to care for the crops and wait\\nfor the harvest. This brought with it comparatively set-\\ntled social relations, regular trade, usually by barter,\\nand more permanent homes. It also made it necessary\\nthat men should recognize some sort of a moral law. It\\nceased to be allowable to take whatever one saw. When\\none planted it was necessary that he should have the right\\nand opportunity to reap. Therefore, protection to prop-\\nerty, recognition of personal rights, and security of fam-\\nily life grew up largely with this new order of settled in-\\ndustry. Consequently, with this era, while they usually\\nhad despotism, backed by some pretence of divine\\nright, still there was the beginning of regular govern-\\nment distinct from religion, recognition of civil laws,\\nobedience to authority, protection of personal rights, and\\nsome crude semblance of justice.\\nWith the further progress from purely agricultural oc-\\ncupations to the point where manufacture and commerce\\ncame in, still new variations in experience and interests\\ndeveloped. Simple as early manufacture was, it had\\nfar more individuality in it than had agriculture. The\\nmanufacture of clothing, furniture, military weapons,", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0020.jp2"}, "21": {"fulltext": "INDUSTRIAL LIFE AND SOCIAL PROGRESS II\\nand so on, called for ingenuity, invention and skill. Ex-\\npanding trade brought increased personal contact in busi-\\nness, and more frequent social intercourse, if only at the\\nmarkets and fairs. Manufacture brought people to-\\ngether in towns, partly for self-defence, partly for the\\nconvenience of trade. This clustering in towns in pur-\\nsuit of various industries gave people many common in-\\nterests.\\nii. Early Towns and Rise of Liberty. The towns\\nwere the great strongholds of the people in the middle\\nages, against the barons, who constantly raided them for\\nthe sake of plunder. This very necessity of common de-\\nfence against the barons compelled the citizens or\\nburghers, to organize municipal governments. Thus,\\nsome of these towns were practically little republics, in\\nwhich each burgher had full political rights and shared\\nfully in the government. It was under these influences\\nand by the growing power and influence of the towns\\nthat the burgher or middle classes first gained entrance\\nto the English parliament, and popular government be-\\ngan. To be sure, this progress was slow, tedious and\\npainful. At first it was scarcely observable, from cen-\\ntury to century; but every important change in the di-\\nrection of greater variety of industry and occupation was\\nfollowed sooner or later by some advance in industrial,\\npolitical, social or religious freedom. England led in\\nthis great movement; the continental countries were\\nmuch more backward.\\n12. The Industrial Revolution. In the eighteenth\\ncentury, as a natural consequence of this progress, came\\na series of remarkable inventions in the great industry of\\ncotton spinning and weaving; Hargreaves spinning jen-\\nny in 1764, Arkwright s spinning frame in 1769, Cromp-\\nton s mule frame in 1779, and Cartwright s power loom", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0021.jp2"}, "22": {"fulltext": "12 OUTLINES OF SOCIAL ECONOMICS\\nin 1785. During the same period (1769) James Watt\\npatented the first steam engine, and this applied to cotton\\nmill machinery gave us the beginning of the modern fac-\\ntory system.\\nThis was practically a revolution in the character of\\nindustry. Factory methods supplanted the home or\\ndomestic system of hand labor. This created a whole\\nseries of new interests, new evils to be remedied, new ad-\\nvantages to be enjoyed. It was followed by the great\\nmovements of the nineteenth century in England, for\\npolitical and religious freedom, first for the middle class\\nand then for the laboring class. England still has the\\nremnants of a monarchy, but it remains only by suffer-\\nance and on good behavior. In reality, the English peo-\\nple have practical democracy.\\nIn this country, although we were largely agricultural\\nup to the time of the Revolution, our people were the best\\nproduct of centuries of English progress. Liberty came\\nearly, therefore, and our civilization has expanded along\\nwith our wonderful industrial growth.\\n13. Summary. Briefly, then, it may be said that the\\nsocial life and quality of a people is largely determined\\nby the character of its occupations. Nations rise in civ-\\nilization, freedom and enlightenment in proportion as\\ntheir industrial life is varied and expanding. Anything,\\ntherefore, which tends to increase the variety of industrial\\nlife may be considered favorable to progress, and any-\\nthing which tends to put us back to simple and crude\\nconditions of industry, or diminish the number of in-\\nterests and duties, is certain to deaden the spirit of im-\\nprovement and restrict progress, perhaps entirely arrest\\nit.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0022.jp2"}, "23": {"fulltext": "INDUSTRIAL LIFE AND SOCIAL PROGRESS 1 3\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapters III. to\\nVII. inclusive, of Part I. Two of these chapters are\\ntheoretical, dealing with the cause of social progress and\\ngiving proofs of the law of progress the other three are\\nhistorical, describing the rise and fall of the medieval\\nfree cities and tracing the progress of political and re-\\nligious freedom, chiefly in England and America.\\nAdditional References. In Marshall s Economics of\\nIndustry, Chapters II. and III. of Book I. on The\\nGrowth of Free Industry and Enterprise, in early civili-\\nzations, down through the middle ages, and under our\\nmodern factory system, pointing out the influence of\\nclimate, custom, etc.\\nIn Hadley s Economics, Sections 29 to 45 inclusive,\\nin Chapter II. describing primitive life, slavery, the be-\\nginning of private property, and emancipation.\\nIn Lubbock s Origin of Civilization, Chapter I.\\nChapter III. as far as the bottom of page 85 and Chap-\\nter IX. describing the social conditions, superstitions,\\nmarriage customs, laws, etc., of savage tribes.\\nIn Henry T. Buckle s History of Civilization in\\nEngland, Chapter II. which is a marvelously fasci-\\nnating and suggestive account of the Influence Exer-\\ncised by Physical Laws Over the Organization of Society\\nand Over the Character of Individuals, although defec-\\ntive in some of its economic reasoning.\\nIn H. de B. Gibbins Industrial History of England,\\nChapter II. of Period II. on The Towns and the Gilds.\\nEXTRACTS FROM READINGS.\\nSavage Life. Speaking of the wild men in the in-\\nterior of Borneo, Mr. Dalton says that they are found\\nliving absolutely in a state of nature, who neither culti-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0023.jp2"}, "24": {"fulltext": "14 OUTLINES OF SOCIAL ECONOMICS\\nvate the ground, nor live in huts; who neither eat rice\\nnor salt, and who do not associate with each other, but\\nrove about some woods, like wild beasts the sexes meet\\nin the jungle, or the man carries away a woman from\\nsome campong. When the children are old enough to\\nshift for themselves, they usually separate, neither one\\nafterwards thinking of the other; at night they sleep\\nunder some large tree, the branches of which hang low.\\nOn these they fasten the children in a sort of swing;\\naround the tree they make a fire to keep off the wild\\nbeasts and snakes, they cover themselves with a piece\\nof bark, and in this also they wrap their children; it is\\nsoft and warm, but will not keep out the rain. The poor\\ncreatures are looked upon and treated by the other Dyaks\\nas wild beasts.\\nNo savage is free. All over the world his daily life\\nis regulated by a complicated and apparently most in-\\nconvenient set of customs (as forcible as laws), of quaint\\nprohibitions and privileges the prohibitions as a general\\nrule applying to the women, and the privileges to the\\nmen. To believe, says Sir G. Grey, that man in a savage\\nstate is endowed with freedom, either of thought or ac-\\ntion, is erroneous in the highest degree/ From Sir\\nJohn Lubbock s The Origin of Civilization, Chapters I.\\nand IX.\\nEarly English Towns. The inhabitants of the towns\\nwere of all classes of society. There was the noble who\\nheld the castle, or the abbot and monks in the monastery,\\nwith their retainers and personal dependents there were\\nthe busy merchants, active both in the management of\\ntheir trade and of civic affairs; and there were artisans\\nand master workmen in different crafts. There were free\\ntenants, or tenants in socage, including all the burgesses,\\nor burgage-tenants, as they were called; and there was", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0024.jp2"}, "25": {"fulltext": "INDUSTRIAL LIFE AND SOCIAL PROGRESS 1 5\\nthe lower class of villeins, which, however, always tended\\nto rise into freemen as they were admitted into the gilds.\\nTo and fro went our forefathers in the quiet, quaint,\\nnarrow streets, or worked at some handicraft in their\\nhouses, or exposed their goods round the market-cross.\\nAnd in those old streets and houses, in the town-mead\\nand market-place, amid the murmur of the mill beside\\nthe stream, and the notes of the bell that sounded its\\nsummons to the crowded assembly of the town-mote, in\\nmerchant-gild and craft-gild was growing up that\\nsturdy, industrial life, unheeded and unnoticed by knight\\nor baron, that silently and surely was building up the\\nslow structure of England s wealth and freedom. From\\nGibbins Industrial History of England, Chapter II.,\\nPeriod II.\\nHow the Towns Bought Freeedom. It is interesting\\nto see what circumstances helped forward this emancipa-\\ntion of the towns from the rights possessed by the nobles\\nand the abbeys, or by the kings. The chief cause of the\\nreadiness of the nobles and kings to grant charters during\\nthis period (from the Conquest to Henry III.) was their\\nlack of ready money They could not indulge\\ntheir love of fighting, which in their eyes was their main\\nduty, without money to pay for their fatal extravagances\\nin this direction, and to get money they frequently parted\\nwith their manorial rights over the towns which had\\ngrown up on their estates. Especially was this the case\\nwhen a noble, or king, was taken prisoner, and wanted\\nthe means of his ransom. And the glories and\\ncruelties of that savage age of so-called knightly chivalry,\\nwhich has been idealized and gilded by romancers and\\nhistory-mongers, with its tournaments and its torture-\\nchambers, were paid for by that despised industrial pop-\\nulation of the towns and manors which contained the real", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0025.jp2"}, "26": {"fulltext": "l6 OUTLINES OF SOCIAL ECONOMICS\\nlife and wealth of medieval England. From Gibbins\\nIndustrial History of England, Chapter II., Period II.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. What is the scientific meaning of progress\\n2. What is the great underlying cause of human progress?\\n3. How were people governed under simple pastoral life?\\n4. What changes in government and ethics came with agricul-\\ntural life?\\n5. What have been some of the great effects of the rise of\\nmanufactures and commerce?\\n6. In the middle ages what part was played by the towns and\\nfree cities?\\n7. Mention the great inventions that brought in the modern\\nfactory system, and name the inventors.\\n8. In what ways did the factory system revolutionize industry?\\n9. What country led the movement of industrial growth and\\nfree government down at least to the nineteenth century?\\n10. How do you account for the more rapid progress of our\\nown country, especially in political and religious freedom?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0026.jp2"}, "27": {"fulltext": "CHAPTER III.\\nWEALTH\\n14. What Wealth Is. We have seen, in our brief his-\\ntorical review, that as people advanced in wealth and\\nprosperity they acquired new rights and advantages,\\npolitical freedom, and a higher state of general culture\\nand civilization. In order to understand the reasons for\\nthis it is important to have a clear idea of the meaning\\nof wealth. This is all the more important because there\\nis a good deal of careless talk about wealth, as if exact-\\nness were of no special importance. Wealth is every-\\nthing outside of and apart from man, which, by human\\neffort, is made useful to man.\\n15. Gifts of Nature Not Wealth. Every part of this\\ndefinition is important, as we shall see. There are many\\nthings, for instance, that are useful to man but are not\\nwealth; such as sunshine, air, gravitation, and wind.\\nThey are not wealth, because they are gratuitous, and do\\nnot require any human effort to make them useful. They\\nshould be described as free gifts of nature, never as\\nwealth. Wealth requires some kind of human exertion.\\nNatural resources not yet utilized, but which are capa-\\nble of being made useful to man by human effort, such\\nas unoccupied land, virgin forests and undeveloped min-\\neral deposits, may be regarded as potential wealth. They\\nare not actual wealth until some productive effort has\\nbeen actually applied to them, but as potential wealth\\n17", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0027.jp2"}, "28": {"fulltext": "1 8 OUTLINES OF SOCIAL ECONOMICS\\nthey may have value or command a price, due. to the an-\\nticipated possibility of producing wealth from them.\\n16. Kinds of Wealth. In the next place, nothing\\nshould be called wealth which is not entirely distinct\\nfrom man. To understand clearly the reason of this\\nwe should divide wealth, for convenience, into two\\nclasses, consumable wealth and productive wealth. By\\nconsumable wealth we mean all wealth which is directly\\nused to satisfy desires, such as food, clothing, shelter,\\nart, literature, music; in fact, everything which is used\\nnot as a means to a further end, but as the final means of\\nsatisfying some desire. This wealth directly ministers\\nto human happiness. It serves the final end for which\\nwealth is produced. Hence it is called consumable\\nwealth.\\nProductive wealth, or capital, is wealth which is not\\nused directly to satisfy final desires, but is used indirectly\\nto aid in producing consumable wealth. Productive\\nwealth includes everything used in the whole process of\\nproducing commodities for consumption tools, ma-\\nchinery, factories, railroads, steamships, etc.\\n17. Capital is Distinct from flan. Since man him-\\nself plays the most essential part in producing wealth,\\nit is very easy to make the mistake of saying that man is\\ncapital or, as is more usual, that a man s muscle or skill\\nor talent are his capital. For instance, Adam Smith\\nspoke of the education and apprenticeship and training\\nof a man as part of his capital. So careful an economist\\nas John Stuart Mill said that the education and skill of\\na people may be included in the capital of the country.\\nExcept in a very narrow personal sense this is a grave\\nerror. It is a very confusing one, too. It blots out any\\nsharp line of distinction between man and wealth, and\\nit is very important to keep this distinction clear, be-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0028.jp2"}, "29": {"fulltext": "WEALTH 19\\ncause we have exactly the opposite kind of interest in\\nman that we have, in wealth. Labor and natural personal\\nfaculties, as skill, strength, and genius, are human; they\\nare a part of the individual person and cannot be sepa-\\nrated from him. They are inseparable personal qualities,\\nbut wealth is material and capable of being transferred\\nfrom one to another. Every addition to a man s capacity\\nor expansion of his character is a growth of the man and\\nnot an increase of wealth.\\nCapital is wealth used as a tool. Skill is not wealth\\nused as a tool; it is personal quality, personal ability, an\\nevidence of training and natural talent. When actively\\nemployed it is simply skill used in production, not wealth\\nused in production.\\n18. Importance of the Distinction. This distinction\\nis more important than at first appears. The object of\\nconsumable wealth is to gratify human desires. The ob-\\nject of productive wealth (capital) is to aid man in\\nproducing consumable wealth. Both these uses of wealth\\nare for the well-being of man one directly, the other in-\\ndirectly. This means that wealth must be used, most of\\nit used up in fact, for the sake of man, which in turn\\nmeans that our progress, if we are to have any, depends\\nupon wealth becoming cheaper and man becoming dearer.\\nThese are two opposite movements, and of course both of\\nthem cannot take place if man and wealth are the same\\nthing. Anything that gives man more wealth for less\\nlabor, whether by higher wages, lower prices or shorter\\nhours, or all three, promotes human progress. Thus\\nwealth and man are unlike in their very nature, and hu-\\nman welfare depends upon one being used for the sake\\nof the other.\\n19. Evil Effects of the Wrong View. The early\\neconomists failed to keep this distinction in mind, and", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0029.jp2"}, "30": {"fulltext": "20 OUTLINES OF SOCIAL ECONOMICS\\nso fell into the habit of describing labor as a form of\\ncapital. This led directly to the idea that labor should\\nbe cheap. Everybody agreed that commodities should\\nbe cheap, and this required that they should be cheaply\\nproduced. Since capital (including labor) was the in-\\nstrument of production, of course labor must be cheap.\\nThis justified the. lowest possible wages and longest pos-\\nsible hours of work and poorest factory conditions, and\\nthe employment of women and children whereas, if man\\nand capital had been kept entirely distinct no such course\\ncould ever have been justified. Cheap production could\\nhave been sought through better machinery (capital),\\nnever through cheaper human labor.\\nThe more perfect human faculties become and the\\nmore important the service men render, the higher price\\nthey may and should command. Every such upward\\nmovement tends toward higher social life. On the other\\nhand, the more perfect the commodities we consume be-\\ncome the lower their price should be, so that people can\\nhave more of them without working harder or longer,\\nand thus get more happiness and opportunity for culture\\nout of their efforts.\\n20. Summary. Wealth, then, is everything outside of\\nman, procured by human effort, which directly or indi-\\nrectly satisfies human wants. Consumable wealth is\\neverything which is directly used for this end. Capital\\nis wealth which is used for the production of more\\nwealth. But under no circumstances or conditions are\\nhuman faculties and qualities to be considered as wealth.\\nCapital is non-human and labor is human. Wealth exists\\nfor man, but not man for wealth. Wealth should be\\nproduced and used for man, but man should not be used\\nfor wealth. The mercury of human progress rises only\\nwhen man is growing dearer and using more wealth, and", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0030.jp2"}, "31": {"fulltext": "WEALTH 2 I\\nwealth is gowing cheaper and serving man more effec-\\ntively and abundantly.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Section I. of\\nChapter I., Part II.; on definitions of wealth and its es-\\nsential characteristics.\\nAdditional References. In John B. Clark s Philoso-\\nphy of Wealth/ Chapter I. which points out very clearly\\nthe distinction between wealth and personal human\\nqualities.\\nEXTRACTS FROM READINGS.\\nThe Broader Meaning of Wealth. Wealth, then, con-\\nsists in the relative- weal-constituting elements in man s\\nmaterial environment. It is objective to the user, ma-\\nterial, useful, and appropriable. Let us apply the term\\nwith logical consistency to whatever possesses these four\\nessential attributes, and note the effect on the traditional\\nconception of wealth. Mr. Mill and the orthodox school\\nwill be found to exclude from their classification things\\nwhich possess these attributes, and to include some which\\ndo not. They recognize as wealth only those things\\nwhich are sufficiently substantial and durable to con-\\nstitute a more or less permanent possession, things which\\nwould appear on the inventory, if society were suddenly\\nto cease producing and consuming, and apply itself, for,\\nsay, a month or two, to taking an account of stock. It is\\nhere maintained that durability is not an essential at-\\ntribute of wealth. Durability is a factor of value, and\\ndetermines, in so far, the measure of wealth in any par-\\nticular product. But products are of all degrees of dur-\\nability, and there is no ground for excluding any of them\\nfrom the conception of wealth on the ground of this sim-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0031.jp2"}, "32": {"fulltext": "22 OUTLINES OF SOCIAL ECONOMICS\\npie difference of degree. Even the school of writers re-\\nferred to would not hesitate to class the ices of the con-\\nfectioner in the same category with the stone wall of the\\nmason, though they are at opposite extremes in the scale\\nof durability. They would, however, exclude music from\\nthe conception, on the ground of its insubstantial and\\nperishable character. It is maintained in this discussion\\nthat, in that which constitutes wealth, there is no differ-\\nence other than one of degree between music and a stone\\nwall. The difference in their durability is, indeed, one of\\nthe factors in their relative value but both alike possess\\nthe four essential attributes above specified; they are ob-\\njective and material products; they are useful and ap-\\npropriable, and fall within the definition of wealth.\\nHaving unduly limited their conception of wealth in\\none direction, the orthodox writers have unduly extended\\nit in another. They have, for example, classed as wealth\\nthe acquired skill and the technical knowledge of the\\nlaborer. Personal attainments, as subjective and imma-\\nterial, are excluded from the meaning of the term. They\\nare not a possession that implies externality to the pos-\\nsessor. They are what he is, not what he has. Popular\\nthought and speech broadly distinguish the able man from\\nthe wealthy man. A man has a potential fortune, not an\\nactual one, in his abilities. The term indicates a state of\\nbeing able and implies a possibility not an attained re-\\nsult. Labor creates wealth, and acquired abilities are po-\\ntential labor. They are to be regarded as the potentiality\\nof the human factor of production, and it introduces an\\nelement of confusion into the science to class them with\\nthe completed product. If these considerations were not\\nsufficient to settle the economic status of a man s subjec-\\ntive qualities, it would, at least, suffice for that end to\\napply to them the test of the traditional definition itself,", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0032.jp2"}, "33": {"fulltext": "WEALTH 23\\nin which exchangeable value is made to be the essential\\nattribute of wealth. In every exchange two commodities\\nare alienated, and transferred to new ownership. Noth-\\ning can be subjected to this process which is an insepara-\\nble part of one man s being.\\nIf wealth-creating abilities are to be confounded with\\nthe product which results from exercising them, every\\npower acquired by effort, involving, in practice, the whole\\nman, will have to be classed as a commodity. The error\\nis mentally confusing, and it is disastrous in its practical\\nresults. Man produces wealth and consumes it but man\\nhimself is always distinct from it. From John B.\\nClark s Philosophy of Wealth, Chapter I.\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. What is wealth?\\n2. Name several things which are not wealth and explain why.\\n3. What are the two great classes of wealth, and what is the\\nusefulness of each?\\n4. How did the mistake arise of confusing man with wealth?\\n5. Should skill, strength, education, etc., be counted as capital?\\nGive reasons for the answer.\\n6. Why is it so important to make a clear distinction between\\nman and capital?\\n7. On what great opposite movements does progress depend?\\n8. Describe some of the evil results of regarding labor as a\\nform of capital?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0033.jp2"}, "34": {"fulltext": "CHAPTER IV.\\nPRODUCTION OF WEALTH.\\n21. /leaning of Production. Production is such a\\nsimple and commonplace word that it seems hardly to\\nneed any explanation. The first thought is, why, every-\\nbody knows what production means, yet there is great\\nmisunderstanding and difference of opinion about it. If\\nwe have our idea of wealth clear and distinct we ought\\nto have no trouble in deciding what kind of efforts are\\nto be called production, since production is simply the\\nprocess of creating and supplying wealth.\\n22. Early Ideas of Production. In the early\\neighteenth century the leaders of political economy, such\\nas it was, were the French physiocrats. They taught\\nthat nothing was production which did not really bring\\nsomething from the earth, like mining, agriculture and\\nforestry. Manufacture and trade were not regarded as\\nproduction. While these pursuits were rather useful they\\ndid not increase wealth. Adam Smith in his Wealth of\\nNations completely demolished this view and estab-\\nlished the mercantile-school doctrine that manufacture\\nand commerce are both productive that to take wool and\\nconvert it into clothing is production as much as to raise\\nthe sheep.\\nBut even Adam Smith did not consider that govern-\\nment officials, clergymen, teachers, scientists, musicians,\\nliterary men and soldiers were producers. They were\\nconsumers, but were what he called non-productive con-\\n24", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0034.jp2"}, "35": {"fulltext": "PRODUCTION OF WEALTH 25\\nsumers. John Stuart Mill, who was the great ex-\\npounder and sustainer of Adam Smith, added soldiers,\\npolicemen, judges and jailers to the list of producers. He\\nsaid they were producers because they were necessary to\\nthe security of production. A policeman is a producer\\nbecause he is needed to stop the thief from running away\\nwith the product, or the incendiary from setting fire to it.\\nSoldiers are producers because production could not be\\nsecure in any country if foreigners could invade by force\\nand destroy property.\\nBut Mill thought that teachers and clergymen, actors,\\nscientists, literary men and lecturers (which group in-\\ncluded himself), et cetera, were not producers. He said\\nthey might be very useful but that the country was the\\npoorer for having them.\\nThis idea of production has led to a great deal of con-\\nfusion and class prejudice. The idea that anybody who\\ndoes not by his labor directly increase the amount of\\nmarketable goods is not a producer, but is only what Mill\\ncalls an unproductive consumer by whose presence\\nsociety or mankind grow no richer but poorer,\\nhas led to the idea that middlemen and professional men\\nare parasites on society. This idea is partly responsible\\nfor the socialist claim that the laborers produce all the\\nwealth, and hence, of course, that all wealth by right be-\\nlongs to them, and that for anybody else to share in it is\\nrobbery.\\nThis shows what serious mistakes can arise out of a\\nwrong conception of important terms. Adam Smith\\ncould see that the physiocrats were wrong in denying that\\nmanufacturers and merchants are producers. John Stuart\\nMill could see that Adam Smith was wrong in denying\\nthat policemen and soldiers are producers, but he could", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0035.jp2"}, "36": {"fulltext": "26 OUTLINES OF SOCIAL ECONOMICS\\nnot see that he himself was wrong in denying that teach-\\ners, clergymen, artists and musicians are producers.\\n23. The Broader View. The broader and altogether\\ntruer view is that everything is production which directly\\nor indirectly aids in creating and supplying wealth.\\nSo far as the article itself is concerned, a barrel of flour\\nis as completely produced before it leaves the flour mills\\nof Minnesota as when it gets to the pantry of the con-\\nsumer, but all the handling, transporting, storing and\\ndelivering is a part of its production. Production is not\\ncomplete until the wealth is finally delivered into the\\nhands of the consumer. Therefore, all that takes place\\nbetween Minnesota and the millions of consumers homes\\nis as much production as was the plowing of the field or\\nthe grinding of the wheat. So that, middlemen are pro-\\nducers just so long as they are needed in this process.\\nWhen they are supplanted by a better organization of\\nindustries they cease to be needed and are dispensed with,\\nbecause they are no longer producers.\\nFrom this point of view, also, teachers, clergymen,\\nlawyers, singers, in fact, all professional people whose\\nefforts develop and refine the character and tastes of the\\ncommunity, promote justice and security, and stimulate\\nvariety of wholesome wants and activities, are producers,\\nbecause indirectly they stimulate production, increase its\\nsafety and cause the making of a finer and more useful\\nquality of products. Their service, therefore, is not un-\\nproductive, but is really productive.\\nWhen we understand that everything is production\\nwhich is necessary to make consumption possible, the\\nmistaken idea about middlemen being parasites and rob-,\\nbers disappears. Going further, when we broaden the\\nidea of production to include everything which stimulates\\nand increases production, then it is perfectly clear that", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0036.jp2"}, "37": {"fulltext": "PRODUCTION OF WEALTH 27\\nrefinement and cultivation of tastes, ideas and habits, the\\nraising and expanding of character, are a part of the. pro-\\nductive effort of society, and those engaged in these lines\\nare as truly productive as those who plow the soil or\\nplant the seed or weave the cloth.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Section II of\\nChapter I., Part II. this section treats of production and\\nproducers, showing why the old definitions must be\\nbroadened.\\nAdditional References. In Marshall s Economics of\\nIndustry, Chapters III. and IV., of Book II. discussing\\nproduction, some phases of consumption, necessaries of\\nlife, capital and income. It will be noticed that Prof.\\nMarshall retains some of the old-school idea as to pro-\\nductive consumption, etc.\\nIn Adam Smith s Wealth of Nations, Chapters I.\\nand II., of Book I. on the division of labor and its\\neconomic causes also Chapter IX. of Book IV. in\\nwhich Dr. Smith attacks the physiocrats notion of pro-\\nduction and shows that manufacturing and mercantile\\nindustries are as much a part of production as agri-\\nculture.\\nIn John B. Clark s Philosophy of Wealth, Chapter\\nII. pointing out the reasons why writers, speakers, mu-\\nsicians, etc. j should rightfully be considered producers of\\nwealth.\\nEXTRACT FROM READINGS.\\nMusic Is Wealth. Dr. Roscher has called attention to\\nthe intrinsic absurdity of calling a violin manufacturer a\\nproductive laborer, and the artist who plays the violin\\nan unproductive one, as is expressly done by Mr. Mill", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0037.jp2"}, "38": {"fulltext": "2 8 OUTLINES OF SOCIAL ECONOMICS\\nand his followers. The violin would, thus, be classed as\\nwealth; the music, the sole end of its manufacture, not\\nwealth. The product, music, satisfies a direct want, the\\nviolin only an indirect one; the latter is an instrument\\nfor producing that which satisfies direct desire. The\\ndirect want-satisfying product is, if anything, more ob-\\nviously wealth than the indirect one. Relative durability\\nand tangibility are non-essential attributes. The me-\\nchanic who makes the violin imparts utility to wood the\\nartist who plays it imparts utility to air vibrations. One\\nproduct is perceived by the senses of sight and touch,\\nthe other by the sense of hearing. One is extremely\\ndurable, the other extremely perishable; but both alike\\ncome under our definition. In both a natural agent has\\nreceived a utility through human effort; both products\\nare wealth, and both laborers productive. From John\\nB. Clark s Philosophy of Wealth, Chapter II.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. On what does a clear idea of production depend?\\n2. What is production?\\n3. Who were the physiocrats and what was their idea of pro-\\nduction?\\n4. How did Adam Smith succeed in modifying this doctrine?\\n5. What classes of people did John Stuart Mill regard as un-\\nproductive\\n6. What is the broader view of production and producers?\\n7. For what reasons may professional persons, clergymen, law-\\nyers, teachers, musicians, etc., be considered producers of\\nwealth?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0038.jp2"}, "39": {"fulltext": "CHAPTER V.\\nCAUSES OF PRODUCTION.\\n24. Necessities and Desires. All production is the\\noutcome of desire, springing either from necessity or vol-\\nuntary wishes, tastes and habits. The first efforts of man\\nare, of course, to satisfy the desire for food, because food\\nis the original necessity of life which absolutely must be\\nsupplied before anything further can be accomplished. In\\nsome very poor and barren countries it requires nearly\\nthe entire time and strength of the population to supply\\nmerely these food necessities, with such rude shelter and\\nclothing as the climate makes imperative.\\nJust so soon as people get a little beyond this state of\\nabject poverty and battle with starvation, other desires\\nbegin to expand and claim attention such as the desire\\nfor personal adornment, for recreation, for better shelter,\\nfor a larger variety of more palatable food, for travel and\\nadventure, even for warfare and plunder later, for more\\norder and security, for settled homes and government,\\nfor justice, broader knowledge, and finally for all the re-\\nfining, cultivating and elevating features of civilized life.\\nIn truth, desire is the first motive force in progress.\\nIt is the disturbing element which makes one grow dis-\\nsatisfied with what is and struggle for what ought to be.\\nWithout it there is no motive for the new and the better,\\nno motive for change, and hence no impulse to act. All\\ndesire, of course, does not result in action, but only when\\nthe desire becomes so strong that it is harder to endure the", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0039.jp2"}, "40": {"fulltext": "30 OUTLINES OF SOCIAL ECONOMICS\\nprivation than to make the necessary effort to satisfy the\\nwant. So that, at bottom, the great work of human\\nprogress, of civilization, of ethical and spiritual growth,\\nbegins with stimulating the variety and raising the\\nquality of human desires.\\nOf course, all desires are not good. It is never true\\nthat all newness is good. People first learn to want things,\\nand in their ignorance and inexperience they often reach\\nout for the bad as well as the good. Getting rid of the\\nbad and keeping the good is an after process of refine-\\nment and correction. Take, for instance, the matter of\\nour food. It used to be very meager and simple. Even\\npotatoes were not known till a few hundred years ago.\\nThe list of foods was slowly enlarged and sometimes in-\\ncluded new,, things which were poisonous, creating sick-\\nness and death. But people learned through experience\\nto distinguish things that made them ill from those that\\ndid not, and with the aid of chemistry foods were puri-\\nfied and improved, and those that were poisonous were\\nruled out and placed on the list of poisons to be used as\\nmedicines only and procured by doctors prescriptions\\nhence the drug store, which is largely a poison shop.\\n25. Habit and Sentiment. This same process goes\\non in almost all other lines. Progress always begins\\nwith new desires, and is perfected by weeding out the\\nbad desires from the good. As this goes on habits are\\ngradually formed, which come to be recognized as sec-\\nond nature. Habit, because of its tenacity and persis-\\ntence, is stronger than government. There is no govern-\\nment, be it ever so despotic, that is powerful enough sud-\\ndenly to run contrary to the established habits of the\\npeople. Habit, continued for generations, creates a deep-\\nrooted sentiment which is a part of the very life and\\ncharacter of the people, and will support or overthrow", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0040.jp2"}, "41": {"fulltext": "CAUSES OF PRODUCTION 3 1\\nforms of government or religion if they come into violent\\nconflict with it.\\nHabit comes of constant repetition. When habit or\\ncustom becomes general throughout the community it is\\nthe ratchet wheel, as it were, of progress that is, it is the\\ngreatest of all influences which prevent society from slip-\\nping backward. What the people have learned to want,\\nlearned to consume and learned to do, habitually, noth-\\ning can take away from them except social revolution or\\nanarchy. Forms of government may come and go, but\\nnational habits can only be changed by the slow process\\nof time.\\nOf course, habits may be modified and refined, but this\\nmust come by exactly the same process that brought the\\noriginal habit. It cannot be done by arbitrary force, but\\nby gradually substituting new and superior tastes and\\nwants which lead to new and superior habits.\\n26. Influence of Education. When we get beyond\\nthe period where absolute necessity controls all our ac-\\ntions, to where habits and seivtiments are formed, our\\nopinions and ideas come to have a great deal to do with\\ndetermining our desires. Thus, very much depends on\\nthe kind of education people have, because education has\\na great influence on our ideas and beliefs. For instance,\\nif we teach that monotonous simplicity is superior to va-\\nriety of life, and that to desire new things that were not\\nused by our fathers is to be frivolous and flippant and\\nselfish, in short, if the education we give tends to re-\\npress all new tastes and desires it will stand in the way\\nof progress. For example, in China the growth of va-\\nriety and newness has been repressed both by religious\\nteaching and social caste, and the social desires and cus-\\ntoms have become fixed and immovable; hence social\\nactivity is one monotonous round of repetition. The", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0041.jp2"}, "42": {"fulltext": "32 OUTLINES OF SOCIAL ECONOMICS\\nChinaman wears the same cut of smock and the same\\ntype of shoes to-day that he did a thousand years ago.\\nTo the extent that education encourages variety and im-\\nprovement, hails experiment and invention, it helps\\nprogress.\\nSanitation is another great influence in progress. It\\nadds to the wholesomeness and healthfulness of life,\\nwhich increases the vigor and activity of the people. Pub-\\nlic parks and playgrounds and clean streets contribute to\\nthis same result. Public libraries, churches, museums,\\nart galleries, wholesome entertainments and recreation,\\nkindergartens and social settlements all share in elevat-\\ning and broadening the tastes and ideas of the people\\nand so increasing consumption and improving its quality.\\n27. Effect of High Wages on Production. The\\nnecessities, habits and customs of a people all combine to\\nmake up what is called their standard of living. This\\nstandard of living, as we shall see later on, is the great\\ninfluence that determines rates of wages. Where the\\nhabits, ideas, tastes and general progress of the people\\nhave brought about a high standard of living, wages are\\nhigh, and it is through wages (including salaries) that\\nthe great majority receive their living. Therefore, it is\\neasy to see, if wages are high it means that the people\\nbuy and consume a great amount and variety of products,\\nthus giving a large market for producers in every line.\\nThe purchases of the great body of wage and salary\\nearners forms the basis and stimulus of modern indus-\\ntries. Hardly any important industry, except such as\\nmake expensive luxuries, could exist at all if nobody but\\nrich persons, business and professional men, etc., bought\\nthe products. Wage and salary earners form about\\nthree-quarters of the whole working population of the\\nUnited States.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0042.jp2"}, "43": {"fulltext": "CAUSES OF PRODUCTION 33\\nTherefore, the amount of wages exercises a most im-\\nportant influence upon the extent and methods of pro-\\nduction. As wages rise and the demand for products in-\\ncreases, a market basis is furnished for larger and larger\\ninvestments of capital in industries to supply these de-\\nmands. This also justifies expensive experiments to de-\\nvelop the most perfect tools and machinery that inven-\\ntion can furnish. The use of these improvements lessens\\nthe cost of production and cheapens the products to all\\nwho buy. When products are cheapened by this method\\nthey are no less profitable to the capitalists, and hence do\\nnot lead to depression and loss but when products are\\ncheapened through inability to sell, which comes from\\ndiminishing low-wage markets, it ruins the producers\\nand inflicts all the ills of business depression and hard\\ntimes upon the community.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Section V. of\\nChapter I., Part II., showing that social consumption\\n(demand) is the basis and cause of production.\\nAdditional References. In John B. Clark s Philoso-\\nphy of Wealth, Chapter III. showing the effects of ex-\\npanding wants and the real nature of wealth consump-\\ntion.\\nIn Adam Smith s Wealth of Nations, Chapter III.\\nof Book I. pointing out how the division of labor, and\\nhence progress of industry, is limited by the extent of the\\nmarket.\\nIn Gunton s Wealth and Progress, Chapter II. of\\nPart I the title of the chapter sufficiently explains its\\ncontents Increased Consumption by the Masses the\\nReal Cause of Improved Machinery.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0043.jp2"}, "44": {"fulltext": "34 OUTLINES OF SOCIAL ECONOMICS\\nEXTRACTS FROM READINGS.\\nEmployments Limited by Market. There are some\\nsorts of industry, even of the lowest kind, which can be\\ncarried on nowhere but in a great town. A porter, for\\nexample, can find employment and subsistence in no\\nother place. A village is by much too narrow a sphere\\nfor him even an ordinary market town is scarce large\\nenough to afford him constant occupation. In the lone\\nhouses and very small villages which are scattered about\\nin so desert a country as the Highlands of Scotland, every\\nfarmer must be a butcher, baker, and brewer for his own\\nfamily. In such situations we can scarce expect to find\\neven a smith, a carpenter, or a mason, within less than\\ntwenty miles of another of the same trade The scattered\\nfamilies that live at eight or ten miles distance from the\\nnearest of them, must learn to perform for themselves a\\ngreat number of little pieces of work, for which in more\\npopulous countries they would call in the assistance of\\nthose workmen. Country workmen are almost every-\\nwhere obliged to apply themselves to all the different\\nbranches of industry that have so much affinity to one\\nanother as to be employed about the same sort of mate-\\nrials. A country carpenter deals in every sort of work\\nthat is made of wood; a country smith in every sort of\\nwork that is made of iron. The former is not only a car-\\npenter, but a joiner, a cabinet-maker, and even a carver\\nin wood, as well as a wheelwright, a ploughwright, a\\ncart and wagon maker. The employments of the latter\\nare still more various. It is impossible there should be\\nsuch a trade as even that of a nailer in the remote and in-\\nland parts of the Highlands of Scotland. From Adam\\nSmith s Wealth of Nations, Chap. III. of Book I.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0044.jp2"}, "45": {"fulltext": "CAUSES OF PRODUCTION 35\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. What is the great active cause of all production?\\n2. From what does this force spring, in the first instance?\\n3. Name some of the varieties of desires that are developed\\nafter absolute necessities are supplied.\\n4. Under what conditions only do desires result in action?\\n5. How are habits and sentiments developed, and what are\\ntheir effects?\\n6. Why is the kind of education we give an important factor in\\nprogress? Give an example of the wrong kind of edu-\\ncation?\\n7. Name some of the institutions and public policies that pro-\\nmote wholesome consumption.\\n8. What is the standard of living and what has it to do with\\nwage rates?\\n9. What class furnishes the largest part of the market demand\\nfor products?\\n0. What is the effect of high wages on the amount and methods\\nof production? Give the reasons for this.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0045.jp2"}, "46": {"fulltext": "CHAPTER VI.\\nFACTORS AND METHODS OF PRODUCTION.\\n28. The Great Factors. Strictly speaking, there are\\nbut two great factors in the production of wealth, man\\nand nature. Man s contribution is his personal efforts of\\nhand and brain, grouped under the general head of la-\\nbor. Nature s contribution is two- fold the great forces\\nof gravitation, heat, sunlight, wind, electricity, animal\\npower, the germinative power of seeds, ct cetera; and\\nthe passive resources from which wealth is extracted,\\nsuch as soil, mines, forests, and living creatures suitable\\nfor food supply.\\nIn economics, however, we cannot take account of the\\nvast immeasurable forces of nature in general, as to their\\ntotal power and usefulness to mankind; that belongs to\\nthe field of abstract speculation. We can reckon with\\nthese forces only to the extent that they are or can be ac-\\ntually utilized, by means of various machines and struc-\\ntures, which are usually managed or guided by some\\nform of labor. These machines and structures are sim-\\nply so many forms of wealth used in the production of\\nwealth, that is, capital. Therefore, instead of trying\\nto deal with natural forces by themselves, as factors in\\nproduction, we can only take account of them through\\nthe means by which we utilize them, namely capital and\\nlabor. Therefore, we speak of capital and labor as the\\ntwo active agents, in production, and whatever produc-\\ntive power they yield is considered to include whatever\\n36", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0046.jp2"}, "47": {"fulltext": "FACTORS AND METHODS OF PRODUCTION 37\\nnatural forces are utilized by their aid. Capital also in-\\ncludes all unfinished wealth in process of production,\\nsince this is for the time being simply wealth used in\\nproduction.\\nNatural resources, which are nature s other great con-\\ntribution, are grouped for convenience under the head of\\nland. This includes all of the earth surface occupied or\\navailable for human use, with whatever it naturally con-\\ntains and spontaneously bears even sea food is brought\\nunder this head to avoid an unnecessary separate classi-\\nfication. Oceans and lakes, except restricted fishing\\ngrounds, occupy the same position in economics as free\\nland which pays no rent.\\nThus, for the purposes of economic reckoning, we\\nspeak of three great, factors in production labor, capital\\nand land. Labor includes all forms of productive human\\neffort. Capital includes all machines, tools, structures\\nand arrangements contrived to utilize natural forces or\\nassist human labor also all unfinished wealth in process\\nof production. Land includes all natural resources,\\nmeaning principally of course the occupied or available\\nearth surface and all its natural qualities and elements,\\nsuch as fertility, mineral deposits, forests and wild ani-\\nmal life. Land not yet available for human use is not\\nwithin the range of economics it is not wealth, and we\\ncan only take account of it as land when it does be-\\ncome available.\\n20. Hand Labor Era. Division of Labor. In the\\nearliest and simplest state of society practically all in-\\ndustry was carried on by hand labor. Men lived by gath-\\nering roots and fruits and by taming and herding animals.\\nVery early the use of crude tools began, traps and\\nweapons to capture or kill wild animals, tackle for fish-\\ning, stone hatchets, kettles, baskets and canoes. As agri-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0047.jp2"}, "48": {"fulltext": "38 OUTLINES OF SOCIAL ECONOMICS\\nculture developed, implements for tilling the soil were\\ndevised, and structures built for storing the crops. In\\nthis early period, also, began the division of labor, which\\nhas ever been one of the most important and really in-\\ndispensable features of all industrial progress. So long\\nas each individual had to supply all his own wants by his\\nown direct efforts, nothing but poverty and degradation\\ncould be the result. As soon as men began to act and\\nlive together in any sort of settled relations, the custom\\narose of dividing pursuits among different groups; the\\nmen hunted and fought while the women guarded the\\nhuts and property and made baskets; then some of the\\nmen herded while others followed the chase, and still\\nothers did the fighting and governing; later on, some\\nbegan to devote their whole time to agriculture, some to\\ntrade, some to crude mechanic arts. Every new division\\nof labor brought a prompt and notable increase in pro-\\nductive power, order and safety, and a larger social life.\\nThis has been true of every successive subdivision or\\nspecialisation of industry down through all the vast de-\\nvelopments of capitalistic production.\\nSimple manufacture began, of course, with the making\\nof crude weapons and tools, and later on developed into\\nhigher forms, such as metal-working, spinning and\\nweaving, cobbling and tailoring, all done with very\\nsimple and primitive instruments. Although these crude\\naids to industry were forms of capital, they were merely\\naids to direct hand labor and it was still the hand-labor\\nera. There came to be masters and apprentices, but no\\nemployers and wage-earners as we know them. Every\\nman or family worked separately, and made practically\\nno use of natural forces all was done by human effort,\\naided by simple tools and machines. This was the slowest\\nand dearest method of production, requiring the most", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0048.jp2"}, "49": {"fulltext": "FACTORS AND METHODS OF PRODUCTION 39\\nlabor for the least results. Some industries in our own\\nlimes are still in the hand-labor era in many respects, such\\nas frontier agriculture, cobbling, peddling, small store-\\nkeeping, sweatshop clothing-making, et cetera; and back-\\nward countries like China and India are almost entirely\\nin the hand-labor period.\\n30. Capitalistic Production. The use of capital on a\\nlarge scale, accompanied by the sub-division of labor\\nwithin each industry, marks a great step in the progress\\nof society. Under the capitalist and wages system all\\nthe tools, machinery, structures and raw materials of\\nproduction are owned by the capitalist or group of\\ncapitalists, who employ workers for definite and agreed\\namounts of pay, the workers furnishing only their labor.\\nThe rise of capitalism as a separate factor neces-\\nsarily -came with the wages system. There cannot be\\nwage laborers without employers so that, when the\\nvilleins and serfs in the middle ages gradually bettered\\ntheir lot and became wage-workers, with the freedom at\\nleast to choose their own employers, this brought with it\\nthe employing or capitalist system. For a long time the\\nonly difference was that the capitalist, instead of owning\\nmaterial, land, tools, laborers and all, as before, now only\\nowned material, land and tools. It was a change which\\ntook the laborer away from the master or lord as property\\nand made him a social and bargaining factor. From the\\nfourteenth to the eighteenth century freedom of in-\\ndividual action in industry gradually developed, some\\nlaborers became employers, and thus competition arose\\nbetween employers or capitalists. In the eighteenth cen-\\ntury, with the inventions which started the factory sys-\\ntem, the capitalists became a distinct group. These in-\\nventions gave us the capitalist system of production,", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0049.jp2"}, "50": {"fulltext": "40 OUTLINES OF SOCIAL ECONOMICS\\nwhich has revolutionized industry and commerce and the\\nrelations of the different classes in society.\\nThe great feature of capitalist production is that it sub-\\nstitutes natural forces, by the use of machinery, and\\nwage-workers on machinery, for the older and more di-\\nrect hand labor. Like every other great change this has\\nbeen the subject of long and sharp discussion. For a\\nlong time it was declared, and there are many who still\\nbelieve, that this is an injury. While the use of ma-\\nchinery clearly results in more wealth being produced, it\\nis charged that the capitalist gets all the increase. This\\nis a very one-sided view, which is not at all sustained by\\nthe facts. Capitalist production does introduce great\\nlabor-saving appliances, which either produce more\\nwealth with the same expenditure or the same amount of\\nwealth at less cost. In either case, the result is a surplus\\nwhich some people, especially the socialists, insist is all\\nkept by the capitalists, which they declare is robbery of\\nlabor.\\nBut this charge is not true. If it were, there could have\\nbeen no reduction in the prices of commodities furnished\\nby capitalist production. The multitude of articles of\\nfood, clothing, furniture, books, papers, public conve-\\nniences, and what not, would cost just as much now as\\nthey did when furnished by hand labor. We all know\\nthey do not. If they did we could have not half, perhaps\\nnot a quarter, of the number of things which are now a\\npart of our regular daily use. If food and clothes and\\nshelter cost as much to-day, quality considered, as when\\nproduced by hand labor, coarse food and coarser cloth-\\ning and very poor housing would be all that most of us\\nwould now get. Prices have fallen steadily wherever\\ncapitalist production has been successfully carried on.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0050.jp2"}, "51": {"fulltext": "FACTORS AND METHODS OF PRODUCTION 4 1\\n31. Effects of Machinery on Labor. Does ma-\\nchinery injure labor? is a very important question in con-\\nsidering this subject. It is charged that it does, because\\nit displaces laborers and creates enforced idleness. There\\nis a half truth in this. It cannot be denied that an im-\\nproved machine will produce the same wealth with less\\nlabor or more with the same labor than the old one, else\\nthere would be no gain in it. That means, of course, that\\nit will supply a certain market demand with fewer la-\\nborers than before. If it were true that this demand\\nnever became any larger, then it would be true that\\nfewer and fewer laborers would be needed as machinery\\nwas introduced. But the market does increase, not only\\nby the higher wages made possible by the better ma-\\nchinery, not only by the natural growth of population, but\\nlargely because the new machine so reduces the cost of\\nproducing an article that it can be sold at a much lower\\nprice, which greatly enlarges the demand for it. The\\nproducer is tempted to lower the price, not by any gen-\\nerosity to the public, but in the hope of getting this\\nlarger trade.\\nAlmost always the result of this, sooner or later, is\\nthat as many and even more laborers are needed in the\\nbusiness than before the new machinery was introduced.\\nIt is probably safe to say that there are not two per cent.\\nof the well-established industries in which much im-\\nproved machinery has been introduced that have not had\\nto increase instead of diminish the number of laborers\\nemployed. If we compare some sixty or more machine-\\nusing industries from 1880 to 1890 we find that in nearly\\nevery instance the number of laborers employed in the\\nindustry increased, the price of the product was lowered,\\nand the wages per laborer rose.\\nIn the long run it may be safely said that machinery is", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0051.jp2"}, "52": {"fulltext": "42 OUTLINES OF SOCIAL ECONOMICS\\nthe friend and helper of labor, and not its enemy and\\noppressor.\\n32. Effect of Corporations and Trusts. Where\\nan industry requires a large amount of capital it has be-\\ncome customary to organize corporations/ in which\\nlarge numbers of people are enabled to unite their cap-\\nital, some in small amounts and some in large, and em-\\nploy skilled and able managers to conduct the business.\\nA few years ago many corporations attempted to form\\ntrusts, or agreements to control all the product in their\\nspecial industries and raise prices. Every one of these\\nattempts failed, sooner or later, but they have been fol-\\nlowed by a great tendency to reorganize numbers of\\nsmall corporations into large ones, for the sake of econ-\\nomy and more stable business. The old name trust is\\ncommonly applied to these large corporations, but they\\nare not trusts at all. They are simply large corporations.\\nThe effect of these large concerns upon the public is\\nregarded with a great deal of distrust. Indeed, they are\\nregarded in much the same way that laborers and hand\\nworkers regarded machinery when it was first intro-\\nduced. But these large corporations are simply the latest\\nform of capitalist production. They are to small con-\\ncerns what machinery is to tools, and the latest is the best\\nbecause it will work most. cheaply and effectively; if it\\ndid not it would not be adopted. This latest form of cap-\\nitalist production saves a great many wasteful expenses\\nwhich the small, petty concerns make necessary.\\nThis saving by large corporations operates exactly like\\nthe saving created by better machines. First, it increases\\nthe profits of the management then, by competition and\\nthe efforts for larger sales, that profit is shared by the\\ncommunity in the form of lower prices. Where very\\nlarge concerns exist, lower prices and usually better", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0052.jp2"}, "53": {"fulltext": "FACTORS AND METHODS OF PRODUCTION 43\\nproducts are the results in the long run. Concerns which\\ntry to avoid this movement, and keep up prices arbi-\\ntrarily, almost certainly collapse or are driven out by\\ncompetition.\\nLarge concerns also tend to give permanence to busi-\\nness. They are conservative. They look ahead with the\\nview of keeping steady business, because to stop for a\\nmonth or two in the year involves a great loss. This\\nsteadiness is a great advantage to wage-workers. Few\\nthings are more important to them than steadiness of\\nemployment, and few things are more important to the\\npublic in general than stability of business. Large con-\\ncerns contribute more to this business stability and per-\\nmanence of employment than any one factor in modern\\ntimes.\\nSo that, large corporations, while they sometimes have\\narbitrary and foolish and even dishonest management,\\nand while they have some bad features which call for\\nimprovement, just as every new thing has, do contain\\nthe elements of improved industrial conditions. They\\ncontribute cheapness of commodities, stability of busi-\\nness and permanence of employment, three things that\\nare of vast importance to modern society. We ought to\\nbe careful, therefore, in attempting to reform corpora-\\ntions, not to strike at the vital features which give these\\nresults, but only seek to get rid of the temporary defects,\\nand protect the rights of investors and the public in\\ngeneral.\\nSUGGESTED READING.\\nTn Principles of Social Economics, Sections III. and\\nIV. of Chapter I., Part II. on the three factors in pro-\\nduction and the conditions under which natural forces\\ncan be used also Chapter VI. of Part IV. discussing", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0053.jp2"}, "54": {"fulltext": "44 OUTLINES OF SOCIAL ECONOMICS\\nthe question of large corporations, or combinations of\\ncapital.\\nAdditional References. In Marshall s Economics of\\nIndustry, Chapters L, II., IX., X. and XL, of Book IV.\\nThese chapters deal with the agents of production, land\\nand its fertility, division of labor, concentration of in-\\ndustries and production on a large scale.\\nIn Hadley s Economics, Chapter VI., on Combina-\\ntion of Capital, and Chapter XL, on Machinery and\\nLabor.\\nIn John Stuart Mill s Principles of Political Econ-\\nomy, Chapter IX. of Book I. on Production on a\\nLarge and Production on a Small Scale.\\nIn Gunton s Trusts and the Public, Chapters I., V.\\nand XVI. discussing various features- of the so-called\\ntrust problem in the light of recent developments.\\nIn Frederick Starr s First Steps in Human Progress,\\nChapters I. to XII., inclusive; describing the primitive\\narts and industries of mankind.\\nIn Sir John Lubbock s Origin of Civilization, Chap-\\nter II. describing industrial life among savage tribes.\\nEXTRACTS FROM READINGS.\\nThe Earliest Tool. Perhaps the oldest implement of\\nman we know is the flint hache from the glacial gravels\\nof France and other parts of Western Europe. It is a\\ncoarse, heavy, rude implement, chipped to shape by great\\nspalls being broken from its surface. It is somewhat\\nalmond-shaped may average about a hand s length is\\nthick and heavy. It is probable that this object was used\\nfor many purposes. It would be a weapon grasped in\\nthe hand and used in close combat it would be a hatchet\\nfor breaking open bones to get at the marrow it would\\nbe a knife for forcing open shells of mollusks it might", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0054.jp2"}, "55": {"fulltext": "FACTORS AND METHODS OF PRODUCTION 45\\nbe an ice-pick for cutting holes through the ice in winter\\nin order to get at fish. Taylor mentions that the spear-\\npoint of iron which the African has made for himself\\nmay be used by him as a knife for smoothing the spear-\\nshaft itself. The stick which the primitive man picked\\nup in the woods he would use for every purpose. Hurled\\nat a passing bird, it was a missile held in the hand and\\nwielded for defense, it was a war-club used for thrust-\\ning, it became a spear as a digger of roots it was, per-\\nhaps, the first agricultural implement to the man astride\\na floating log upon the river, the same stick became a\\nhelp in handling the primitive craft. From Frederick\\nStarr s Some First Steps in Human Progress, Chapter\\nX.\\nLabor Not Displaced. Machinery has not displaced\\nlabor. On the contrary, there has been a most con-\\nspicuous increase of employment in those lines where\\nimprovements in machinery have been greatest. The\\nnumber of persons engaged in manufacturing and trans-\\nportation to-day bears a far larger proportion to those\\nengaged in agriculture than was the case two or three\\ngenerations ago. The urban population makes more use\\nof machinery than the rural population and it is a con-\\nspicuous fact that our cities have grown faster than the\\ncountry as a whole. Whatever else machinery may have\\ndone, it certainly has not kept labor out of mechanical\\nindustries. From Hadley s Economics, Chapter XL\\nAdvantages of Large Production. The possibility of\\nsubstituting the large system of production for the small,\\ndepends, of course, in the first place, on the extent of the\\nmarket. The large system can only be advantag eous\\nwhen a large amount of business is to be done; it im-\\nplies, therefore, either a populous and flourishing com-\\nmunity, or a great opening for exportation. Again, this", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0055.jp2"}, "56": {"fulltext": "4.6 OUTLINES OF SOCIAL ECONOMICS\\nas well as every other change in the system of produc-\\ntion, is greatly favored by a progressive condition of capi-\\ntal. It is chiefly when the capital of a country is receiv-\\ning a great annual increase that there is a large amount\\nof capital seeking for investment; and a new enterprise\\nis much sooner and more easily entered upon by new\\ncapital than by withdrawing capital from existing em-\\nployments. The change is also much facilitated by the\\nexistence of large capitals in few hands. It is true that\\nthe same amount of capital can be raised by bringing to-\\ngether many small sums. But this (besides that it is not\\nequally well suited to all branches of industry) supposes\\na much greater degree of commercial confidence and en-\\nterprise diffused through the community, and belongs al-\\ntogether to a more advanced stage of industrial prog-\\nress. From Mill s Principles of Political Economy,\\nChapter IX. of Book I.\\nQUESTIONS FOR REVIEW OR DEBATE.\\nt. What are the three factors in the production of wealth?\\n2. What is meant by labor\\n3. What is meant by capital\\n4. What is meant by land\\n5. Describe the early and simple methods of producing wealth.\\n6. How did the division of labor and use of capital begin?\\n7. What are the distinct features of the capitalist and wages\\nsystem?\\n8. Do the capitalists receive all the benefits of capitalistic pro-\\nduction? What do the facts show?\\n9. What are the temporary and permanent effects of machinery\\non the employment of labor?\\n10. What is the object of corporations?\\nit. What were the trusts, what became of them, and why?\\n12. Describe the advantages of large corporations.\\n13. Are the defects of large corporations a necessary part 01\\nthem or due to unwise management? What should be\\nour attitude toward them?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0056.jp2"}, "57": {"fulltext": "CHAPTER VII.\\nFACTORS AND METHODS OF PRODUCTION\u00e2\u0080\u0094 Continued.\\n33 Beginnings of Exchange. In primitive society,\\nas soon as industries became at all specialized or sub-\\ndivided, the necessity arose of exchanging products.\\nThose who minded flocks of sheep or herds of cattle\\ncould not attend to the plowing, planting and harvesting\\nof crops, and neither could the shepherds or farmers\\nvery well attend to the making of clothing, when woven\\ngarments took the place of skins. Therefore, those who\\nraised sheep had to exchange the wool and mutton for\\nfood and clothes, and those who raised crops had to ex-\\nchange the grain and vegetables for wool and meat and\\nclothing, and those who made clothing had to exchange\\nwhat they did not themselves need for meat and grain\\nand wool. This exchange was at first a direct swap-\\nping of goods for goods, and whenever or wherever\\nthat takes place it is known as barter. As the number\\nand variety of commodities increased, the feasibility of\\nthis direct barter diminished. It was quite easy to ex-\\nchange simple commodities in bulk, as wheat for sheep,\\nbut when articles became more unlike and numerous this\\nbarter system grew to be very cumbersome and difficult.\\nSo it came to be necessary to have some one thing whose\\nvalue should be a standard by which the value of other\\nthings could be measured, and for this purpose money\\ncame into use.\\n34. floney. Money has been made of all sorts of\\n47", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0057.jp2"}, "58": {"fulltext": "48 OUTLINES OF SOCIAL ECONOMICS\\nmaterials at different times and in different countries,\\nskins, shells, grain, cattle, even tobacco, etc. In selecting\\nthe material from which it shall be made it is necessary\\nto have in mind the uses to which it is to be put. In the\\nfirst place, money must be made of a commodity which is\\nitself valuable, so that those who receive it in exchange\\nor payment for a commodity may get something which\\nis as valuable as that with which they part. Then, in\\norder to do the work of money, it must be something\\nwhich can be divided into very small portions, so that\\nsmall quantities of different things can be purchased and\\npieces of money to the exact value of the purchases be\\ngiven in exchange.\\nAfter a great deal of experimenting with different ma-\\nterials, the countries that were most advanced began to\\nuse metal coins as money. Iron, copper, nickel, silver\\nand gold have been used. Certain quantities of metals\\nwere stamped to show that they were of the right weight\\nand quantity, and so the system of coinage was developed.\\nAs civilization advanced, the most expensive metals came\\ninto use as money because of their greater convenience\\nand less liability to change in value. But gold, for in-\\nstance, could not be used in poor and semi-civilized coun-\\ntries as money. It is so valuable that it could not be\\nmade into pieces small enough for the people to make\\ntheir ordinary purchases. In China, gold coins could\\nnot be made small enough to pay a week s wages, and of\\ncourse no one could use money which required paying a\\nwhole week s wages in a single coin. It had to be made\\nof material which could be divided up into pieces small\\nenough for their small wages and purchases. The wages\\nare so low in China and India that most purchases can-\\nnot be made even with silver, so they are compelled very\\nlargely to use copper, and even iron.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0058.jp2"}, "59": {"fulltext": "FACTORS AND METHODS OF PRODUCTION 49\\nBut as people become better off and large purchases are\\nmade, the more valuable metals become indispensable.\\nFor instance, it would be impossible to make some of the\\nlarge purchases that are common in this country to-day\\nwith iron money. The cost of handling the money\\nwould make the transaction immensely expensive. In\\nadvanced civilization the most valuable metals become\\nthe most economical and best fitted for use as standard\\nmoney. That is why, as nations grow in wealth and com-\\nmerce, they tend to substitute gold for silver standard\\nmoney, but even gold becomes too burdensome. When\\ntrade and commerce reach great proportions another in-\\nnovation has to be made, namely, the use of paper money,\\nrepresenting gold or silver and redeemable in these\\nmetals, but much more convenient to use. In small\\ndealings, not only coin, but coin made of cheap material\\ncan be used and everything paid for in cash, but, as com-\\nmodities multiply in number and business increases in\\nvolume, cash payments become burdensome and impos-\\nsible. Then comes the use of this paper money, and\\nbanking is developed as a further and most effective ad-\\ndition to the methods of exchange.\\n35. Banking. Banks are established to aid exchange\\nby the use of business faith or credit, so that business\\ncan be carried on without money changing hands at all.\\nMoney is deposited in these banks by large numbers of\\npeople, who, when they wish to buy something, instead\\nof handing over the cash give a check or order on their\\nbank; and the person receiving the check may often de-\\nposit it to his own credit in the same bank, so that no\\nmoney changes hands. Probably nine-tenths of the busi-\\nness of this country is done in this way, and without any\\nuse of money.\\nOf course, in the constant round of business some of", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0059.jp2"}, "60": {"fulltext": "50 OUTLINES OF SOCIAL ECONOMICS\\nthese checks are redeemed in coin. Then, too, checks\\ngiven on one bank will be deposited in several other\\nbanks, but this does not mean that each bank pays the\\nothers in cash for all the checks they hold against it.\\nEvery bank holds checks against many of the other\\nbanks, and so a large part of the accounts are cancelled\\nand only the balances are paid in cash. In large cities,\\nmessengers from all the banks meet every morning at\\na clearing house and exchange checks, taking back the\\ncash balances due them. If, for instance, one bank has\\nchecks against another amounting to $500,000, and the\\nsecond bank has checks against the first amounting to\\n$490,000, the second bank pays the first bank only $10,-\\n000 the rest of the account is mutually cancelled because\\nthe one offsets the other. In this way checks have be-\\ncome the civilized world s great instrument of exchange,\\nby which commodities or properties from one dollar s\\nworth to a million dollar s worth are exchanged to suit\\nthe convenience of the wage-earner as well as the rich.\\nBanks do more than this. A great deal of money is\\nusually left with them on deposit all the time, and this\\nthey loan out to others who want it for business purposes.\\nSo the banks serve as an instrument by which the unused\\nmoney of those who have a surplus is made available for\\nothers who temporarily have a shortage. Banks usually\\nhave the right, also, to issue their own notes bank-\\nnotes, secured and guaranteed in various ways, and\\nthese they can loan out for business purposes. Bank-\\nnotes serve the same ends as money.\\n36. Transportation and Markets. The final stage in\\nproduction is getting the goods to the consumer, and this\\nrequires transportation and markets. As society grows\\nmore complex, exchanges are not limited to special lo-\\ncalities, but extend to the extreme parts of the earth.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0060.jp2"}, "61": {"fulltext": "FACTORS AND METHODS OF PRODUCTION 5 I\\nThe American dinner table calls for the products of al-\\nmost every part of the globe. To accomplish these great\\nexchanges transportation is indispensable. At first, the\\nproducts were carried on men s backs, then domestic ani-\\nmals like the pack-horse and the mule were used, and\\ncanoes and rafts where possible; then wagons and\\ncoaches, and, finally, through the application of steam\\nand mechanical invention, steamships and railroads were\\ndeveloped. Without railroads, probably more than 90\\nper cent, of the present exchanges of products would be\\nimpossible. Clearly, therefore, production is not merely\\nthe securing of materials and manufacturing articles, but\\nincludes distributing them over the face of the entire\\nglobe, wherever required.\\nCommodities are not generally shipped direct to the\\nconsumer, but are sent first to local merchants or deal-\\ners, middlemen, all over the country and perhaps\\nworld, who hold them in stock and sell in large or small\\namounts to the final consumers as they may desire to\\nbuy. This is also a necessary part of production, and is\\nusually a real economy. If every consumer had to order\\ndirect from the farm or factory, the expense of shipping\\nsuch small quantities would greatly increase the price, to\\nsay nothing of the loss of time.\\nExchange, therefore, requires the use of money, of\\nbanking, of transportation, and of stores or markets, and\\nall are necessary factors in the production of wealth.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapter VI. of\\nPart II., on Money and Its Economic Function. This\\nchapter goes rather fully into the money question. Its va-\\nrious sub-divisions explain what money is, its economic\\nfunctions, how its value is determined, the depreciation", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0061.jp2"}, "62": {"fulltext": "52 OUTLINES OF SOCIAL ECONOMICS\\nof money, and by whom money should be coined or is-\\nsued. The sections involving the question of the value\\nof money will be understood better after the chapter in\\nthis volume on Value or Price.\\nAdditional References. In Charles F. Dunbar s\\nTheory and History of Banking/ Chapters I. to VI.,\\ninclusive. These chapters explain in detail, for those\\nwho wish to go into the subject carefully, the nature of\\nbanks and the operation of the banking system, including\\ndiscounts, deposits, banking accounts, checks, bank-notes\\nand reserves.\\nIn Hadley s Economics, Sections 201 to 215, inclu-\\nsive, in Chapter VII. These sections discuss the uses of\\nmoney, its forms (including paper money), seigniorage\\nand depreciation.\\nIn Hadley s Railroad Transportation, Its History and\\nIts Laws, Chapters I. and II. describing The Modern\\nTransportation System and The Growth of United\\nStates Internal Commerce. The rest of this volume\\ndeals largely with the problems of railroad rates, dis-\\ncriminations and management, and foreign railroad sys-\\ntems it is useful for special students of transportation.\\nEXTRACTS FROM READINGS.\\nThe Bank Check System. The depositor, or the cred-\\nitor of a bank, who has to make a payment to some other\\nperson, has his choice between two methods of making\\nit. He may demand money from the bank, in the exer-\\ncise of his right as a creditor, and deliver this money or,\\nwith the assent of the person to whom he has to make\\npayment, he may give to this person an order on the bank\\nfor the money, or what is commonly called a check. If he\\nadopts the latter method, a payment for goods or of a\\ndebt is effected by the simple transfer of a right to de-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0062.jp2"}, "63": {"fulltext": "FACTORS AND METHODS OF PRODUCTION 53\\nmanci money from the bank and so too if the recipient\\nof the check gives it in payment to some third person, and\\nhe to a fourth, and so on. To this extent the check is\\nplainly made a substitute for the sum of money for which\\nit calls. It represents no particular money or group of\\ncoins, for, as we have seen, the deposit is likely to have\\nbeen created by the bank in exchange for some security\\nbought by it, and is, therefore, a naked right to demand\\nand not a claim to any particular cash; and even if the\\ndeposit originated in the lodging of money by the deposi-\\ntor, it has in this case also become a naked right to de-\\nmand and does not imply any claim to the money actually\\ndeposited. But the transfer of this naked right, in the\\ncase supposed, is made by the agreement of the parties to\\nserve the same purpose as the transfer of money, and the\\nright thus becomes a substitute for money.\\nThe effectiveness of this substitution, however, is in-\\ncreased and the use of the deposit greatly prolonged,\\nwhere it is the practice for the transferee himself to de-\\nposit the check instead of demanding its payment by the\\nbank, or seeking his opportunity to use it in some pay-\\nment of his own. From Dunbar s Theory and His-\\ntory of Banking, Chapter IV.\\nTransportation a Century Ago. One hundred years\\nago the United States had no system of transportation.\\nExcept on natural water courses it had very little\\ntransportation of any kind. The roads were built by local\\nauthorities for local purposes and badly built at that.\\nWagon conveyance was slow and expensive. It took a\\nweek to go from Boston to New York by stage, and\\nnearly three weeks to reach Charleston. Although this\\nwas the most frequented route, there was only a tri-\\nweekly mail at best. The postal service was irregular and\\nunsafe. Passenger journeys were attended with discom-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0063.jp2"}, "64": {"fulltext": "54 OUTLINES OF SOCIAL ECONOMICS\\nfort, and not infrequently with danger. Long-distance\\nfreight movement was absolutely impossible. The charge\\nfor hauling a cord of wood twenty miles was three dol-\\nlars. For hauling a barrel of flour one hundred and fifty\\nmiles it was five dollars. Either of these charges was\\nsufficient to double the price of the article and set a prac-\\ntical limit to its conveyance. Salt, which cost one cent a\\npound at the shore, would sometimes cost six cents a\\npound three hundred miles inland, the difference repre-\\nsenting the bare cost of transportation. It was on these\\ncheap articles of common use that the charge bore most\\nheavily. It forced every community to live within itself.\\nFrom Hadley s Railroad Transportation, Its History\\nand Its Laws, Chapter II.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. At what stage in progress did exchange first become nec-\\nessary?\\n2. What is money, and why did it come into use?\\n3. Of what materials has money been made at different times\\nand in different countries? Why has the tendency been\\nto use more and more expensive metals?\\n4. Mention some of the necessary qualities of money.\\n5. What is paper money, and what purpose does it serve?\\n6. How do banks make it possible to use credit as a means\\nof exchange? Describe the check system.\\n7. In what way are the accounts of banks against each other\\nsettled, especially in large cities?\\n8. In what other ways do banks render aid to industry and\\nenterprise?\\n9. Explain the importance and methods of transportation, as a\\nfactor in wealth production.\\n10. Who are the middlemen What service do they render\\nin production, and are they a burden or a saving to con-\\nsumers?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0064.jp2"}, "65": {"fulltext": "CHAPTER VIII.\\nCONSUMPTION OF WEALTH.\\n37. Consumption the Object of Production. Con\\nsumption is both the first and the final object of produc-\\ntion. Whatever the form of production, whether it is\\nnear to or remote from consumption, it is governed by\\nconsumption. The primitive producer, even of the Rob-\\ninson Crusoe type, is governed in his fishing and hunting\\nentirely by his desire to consume fish and game. If he\\ndid not wish to consume fish or game he would neither\\ntake the trouble nor run the risk of hunting and fishing.\\nWhen production reaches a more advanced state,\\nwhere the first producers sell their products to whole-\\nsalers, and they to retailers, the connection between pro-\\nduction and consumption is not so obvious, at first sight,\\nbut it is none the less real. The farmer who raises wheat\\nin Dakota or wool on the plains of Australia is none the\\nless producing for consumption because he is far from\\nmarket. He sells to the speculator, who in turn sells to\\nthe miller or manufacturer, and he to the merchant; but\\nmerchant, speculator and farmer are all finally governed\\nby what the consumer will actually buy.\\nBeyond the elementary products required to sustain life,\\nconsumption is wholly a matter of habits, tastes and cus-\\ntoms in other words, it is a social rather than industrial\\nfact. The variety and character of the objects consumed\\ndetermines what will be produced. In China or other\\npagan countries they produce idols, for which in Chris-\\n55", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0065.jp2"}, "66": {"fulltext": "56 OUTLINES OF SOCIAL ECONOMICS\\ntian countries there is absolutely no demand, and hence\\nnone are produced. There are some industries, how-\\never, in this country and elsewhere that produce com-\\nmodities for use in India and China. These things could\\nnot be sold in England or the United States, but their\\ncharacter is as much determined by the kind of consump-\\ntion in China as if the Chinamen themselves had made\\nthem. Consumption is in reality the final expression of\\ndesire and demand. Business is based upon it. Every-\\nday regular consumption is the basis of future produc-\\ntion. The market for the future is estimated by the\\nmarket of the past. Production is always and every-\\nwhere the effort to supply something which is demanded\\nfor consumption.\\n38. Public and Private Consumption. Private con-\\nsumption is the direct consumption of wealth by indi-\\nviduals. Public consumption is the use of wealth by the\\npeople in common. For example, public expenditures\\nfor streets, water, drainage, parks, museums, police,\\nboard of health, etc., are forms of public consumption.\\nBoth of these kinds of consumption, private and public,\\naffect production in practically the same way. Both\\nkinds of consumption are governed entirely by the tastes\\nand habits of the people, and in turn affect human quality\\nand character. Both contribute to the education of the\\npeople. Private consumption, represented by houses,\\nclothing, literature, art, music, amusements and social\\ncontact, tends to refine, cultivate and improve the tastes,\\nhabits and character of the individual. Every beautiful\\nbuilding, every clean street, every new appointment\\nwhich adds to the convenience, sanitation or attractive-\\nness of the streets or homes, is just so much civilizing\\nand refining influence.\\n39. Social Effects of Consumption. The social ef-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0066.jp2"}, "67": {"fulltext": "CONSUMPTION OF WEALTH 57\\nfeet of all this is shown in the habits, tastes, manners, in-\\ntelligence and character of the people. Indeed, it might\\nbe safely laid down as a general proposition that the\\ncivilization of a community or nation is broadly deter-\\nmined by the extent and variety of its consumption.\\nSmall consumption per capita always means crude and\\nrelatively costly products, because where the demand is\\nsmall the production is sure to be carried on by primitive\\nmethods, mainly by hand labor. Wherever hand labor\\nprevails the variety of products is slight. When the con-\\nsumption is very large it is sure to be varied. When-\\never the products consumed are few in number and of\\nuniform style the total amount used is always relatively\\nsmall. For instance, if all clothing were made alike there\\nwould be no motive for change, and hence a single suit\\nwould do as well as twenty. But when commodities have\\nto satisfy the artistic sense and taste for beauty and\\ncomfort then the forms become practically unlimited.\\nLarge consumption is always expressed in a large and\\nvaried market, and this is what calls out inventions and\\nexperiments and large investments of capital in new lines\\nof production. All our complex machinery, from the\\nfirst spinning frame to the modern printing press and\\nelectrical plants, which have lessened the cost and low-\\nered the price of products, have come because of and\\ndepend entirely upon the growth of the market, or in-\\ncreased consumption.\\nSo that, the social effect of consumption is really to\\ngive a higher standard of living and larger measure of\\ncivilization in proportion as it is large and varied; or, to\\ngive primitive barbarism in proportion as it remains\\nsmall. Consumption is the key to civilization. Progress\\ncomes with the increase and diversification of consump-\\ntion. Let science, art and statesmanship stimulate and", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0067.jp2"}, "68": {"fulltext": "58 OUTLINES OF SOCIAL ECONOMICS\\ndiversify desires and demands, leading to consumption,\\nand self-interest will set in motion the producing forces\\nto furnish the required supply.\\n40. Useful and Wasteful Consumption. There is a\\ngood deal said about wasteful consumption. This is\\na part of the old idea that consumption is waste unless\\nit is for the special purpose of further production. In\\nreality, all consumption leads to production. Of course,\\nthere is useful and less useful consumption. Consump-\\ntion may be regarded as wasteful which results in op-\\npression, crime and immorality. While this class of\\nconsumption stimulates production it serves no useful\\nend in the community, but actually results in harm. But\\nit is a great mistake to suppose that all wealth which is\\nused to satisfy the demands and tastes of people who\\nare not engaged in business is wholly wasted such, for\\ninstance, as the highly expensive furnishings of the\\nhomes of the rich or the lavish expenditures on social\\nentertainments.\\nThis cannot be regarded as wasteful consumption. It\\nis this very class of consumption that constantly brings\\nin and develops variety of products, which gradually\\ncome within the reach of larger and larger numbers.\\nNew artistic products, or luxuries, are first introduced\\nfor the seemingly extravagant people who can pay for\\nthe experiments and high-priced hand labor required to\\nbring out the small quantity at first demanded. This is\\nthe beginning of the market for new and improved prod-\\nucts. As soon as the use of them becomes established\\nand the methods of production permit a little lower\\nprices, the demand spreads among people of smaller pur-\\nchasing power. This increases the market and leads to\\nincreased production, which, in turn, calls for more scien-\\ntific and effective methods. This so lowers the price that", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0068.jp2"}, "69": {"fulltext": "CONSUMPTION OP^ WEALTH 59\\na larger and larger proportion of the community can af-\\nford to buy the products.\\nIt is in this way that carpets, furniture, pictures, liter-\\nature, musical instruments, stoves, sewing machines, and\\nthe multitude of common furnishings of the laborer s\\nhome, were first introduced. They were made at first\\nonly for the royalty and nobility, but now, produced by\\ncapitalist factory methods, have become the daily pur-\\nchases of the laboring class.\\nTherefore, whether consumption is useful or waste-\\nful is not necessarily or even usually a question of\\nwhether the thing used is expensive or even extrava-\\ngant, if the buyer can afford it, but it is a question of\\nwhether it leads to higher refinement, comfort or con-\\nvenience, or to coarseness, excesses, ill health, immo-\\nrality or crime. This is the real test.\\nSUGGESTED READING.\\nGeneral References. In Marshall s Economics of In-\\ndustry, Chapters IV., V. and VI., of Book III. These\\nchapters contain many interesting comments on the na-\\nture and elasticity of various desires and demands, the\\neffects of wealth consumption, the kinds and amounts of\\ngratification yielded by different forms of wealth, etc.\\nIn John B. Clark s Philosophy of Wealth, Chapters\\nIII. and IV. Chapter III., which relates more directly\\nto desires and demands as the causes of production, has\\nalready been suggested in connection with the reading\\nin Chapter V., but in its latter portion especially is very\\napplicable to the present topic. Chapter IV. is on The\\nElements of Social Service, and contains many excellent\\nobservations on the nature and effects of consumption.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0069.jp2"}, "70": {"fulltext": "60 OUTLINES OF SOCIAL ECONOMICS\\nEXTRACTS FROM READINGS.\\nConsumption the Social Object of Production. To\\ndraw a line between that which, when consumed, gives\\ncapacity for labor, and that which does not, is impracti-\\ncable. Comforts, as well as necessities, may increase the\\nability to work, and necessities, as well as comforts, may\\ngive gratification. The food of nearly every man satisfies\\nwants higher in the scale than that of simple nourish-\\nment; it gives a sensuous gratification distinct from its\\nnutritive action. The clothing of every one above desti-\\ntution satisfies higher wants than those of warmth and\\nprotection, those, namely, of personal adornment and of\\nsocial consideration. So with the dwelling, and the entire\\nsurroundings. It is impossible to say that food, cloth-\\ning, and shelter are productively consumed, or even that\\ndistinguishable portions of them are so.\\nTo consume only productively one must eat the cheap-\\nest food that will adequately nourish, wear the simplest\\nclothing that will completely protect, and live in the\\nrudest dwelling that will fully shelter. All higher wants\\nmust remain unsatisfied, and the man must become a ma-\\nchine, content with the fuel that keeps hirn in motion.\\nHere is the chief weakness of the classification, and the\\nreason for mentioning it in this connection; to make a\\nman a machine is to make him anything but productive.\\nThat such a result can never be realized in fact is self-\\nevident that it should never be conceived of in thought\\nis an evidence of how little trouble even the greatest\\nwriters on political economy have given themselves con-\\ncerning the real nature of the being with whose actions\\nthey deal. If the laborer is an engine, his motive power\\nis fuel if he is a man, his motive power is hope. It is\\npyschological rather than physiological forces which", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0070.jp2"}, "71": {"fulltext": "CONSUMPTION OF WEALTH 6 1\\nkeep him in motion. His will, and not merely his muscle,\\nis an economic agent, and he is to be lured, not pushed, in\\nthe way of productive effort. Ambition may have feeble\\nsway in individual cases, but, this side of the gate of\\nDante s Inferno, it is never entirely extinct. From\\nClark s Philosophy of Wealth, Chapter III.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. What is the object of all productive effort?\\n2. On what does the extent and variety of consumption depend?\\n3. Explain how consumption is really the basis of all industry,\\nand how production is regulated by it.\\n4. What is the difference between private and public con-\\nsumption?\\n5. Is there any real difference in the primary causes of private\\nand public consumption?\\n6. What are some of the social and individual effects of con-\\nsumption, whether public or private?\\n7. Wnat effect has the largeness or smallness of consumption\\non the variety and price of products?\\n8. In what way have most of our comforts and conveniences\\nfirst come into use?\\n9. Are luxuries to be regarded as wasted wealth? Give reasons\\nfor your answer.\\n10. What is the real test of whether consumption is useful or\\nwasteful", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0071.jp2"}, "72": {"fulltext": "CHAPTER IX.\\nVALUE OR PRICE.\\n41. Value and Price are Identical. Value and price\\nare two names for the same thing. Both mean, simply, the\\nratio in which commodities, including money, are ex-\\nchanged for each other or for human service. We often\\nspeak of value as something different from price. John\\nStuart Mill said that value is the ratio in which things\\nwill exchange for one another, and price is the ratio in\\nwhich they will exchange for money. For all practical\\npurposes this is confusing and unnecessary. The price\\nof a thing, it is true, is what it will bring in exchange for\\nsomething else, but if it will bring a dollar in money it\\nwill bring a dollar s worth of anything else. The ratio\\nin which a hat will exchange for wheat, potatoes or corn\\nis the same as the ratio in which it will exchange for the\\nmoney price of any of these things. In modern society,\\nwhere money is used, value and price are the same thing.\\nIn primitive society, where money is not used, value and\\nprice are not spoken of. It is simply barter, swapping\\nthings. When barter or swapping becomes too incon-\\nvenient to be practicable, money is used; this furnishes,\\nas we have already seen, a common standard article which\\nanybody will accept in exchange for what he has to sell,\\nbecause he knows that others will accept it in turn in ex-\\nchange for what he want s to buy, and so on. Therefore,\\nwhile it is correct enough to speak of the value or price\\nof one commodity in some other commodity, as the value\\n62", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0072.jp2"}, "73": {"fulltext": "VALUE OR PRICE 63\\nof a hat is two bushels of wheat, nevertheless, for con-\\nvenience, when we speak of the value or price of any-\\nthing we nearly always mean its value or price in money,\\nthe commonly accepted instrument or measure of all ex-\\nchanges.\\n42. Value and Utility. Value is a much used and\\nmisused word, the meaning of which has been unneces-\\nsarily confused. For instance, Adam Smith and a great\\nmany others who have written since speak of two kinds\\nof value, value in use and value in exchange. But\\nwhen we speak of value in use (meaning the usefulness\\nof, say, a coat to the wearer) we are not really talking of\\nvalue at all, any more than we are when we speak of the\\nvalue of a friend. That use of the word value has no\\nrelation whatever to exchange or to price. It relates to\\nusefulness, to esteem. One never thinks of trading his\\nfriend when he speaks of his value. He thinks only of\\nhis esteem for him. Or, when one speaks of the value\\nof a fur coat in a blizzard he does not mean its price, he\\nmeans its warmth, its usefulness. When Adam Smitli\\nspoke of water as having a high value in use but no\\nvalue in exchange because it can be had for nothing;\\nor the low value in use and high value in exchange\\nof diamonds, he was really making a wrong use of the\\nword value. The high value in use of water is simply its\\nutility for quenching thirst and irrigating land, and for\\ncleanliness. In the same way we may speak of the value\\nof sunshine and air and gravitation, when we do not\\nmean value at all, but utility, usefulness. If we make a\\nclear distinction between the two it will help us very\\nmuch in understanding the subject.\\nValue, then, does not mean the quality of a thing but\\nthe ratio or proportion in which it will exchange for some\\nother thing. When cotton cloth cost fifty cents a yard it", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0073.jp2"}, "74": {"fulltext": "64 OUTLINES OF SOCIAL ECONOMICS\\nwas no more useful for making sheets and shirts than it\\nis now at four cents a yard, but it was more valuable.\\nIt had a higher price. When steel rails cost $120 a ton\\nthey were no more useful than when they were sold at\\n$18 a ton; in fact, they were not so useful because they\\nwere not so good; but they were more valuable. They\\nhad a higher price. It often happens that the usefulness\\nof a thing increases while its value or price diminishes.\\nClearly, then, they are not the same thing at all.\\nHow this value or price is determined is one of the\\nmost important questions in social economics. We find\\nthat some things which are very useful, even indispensa-\\nble, like air and sunshine, have no price at all. We get\\nthem for nothing. And we find other things, like dia-\\nmonds and gold plate, which are useful in satisfying cer-\\ntain desires, but are not indispensable because millions of\\npeople get along without them, yet have a very high\\nprice.\\nNow, why have diamonds a high value and sunshine no\\nvalue at all Clearly it is not because of the difference in\\ntheir usefulness. If it were, sunshine would have an\\nenormously higher value. Then what is the reason? It\\nis because sunshine costs nothing. It is a free gift of na-\\nture. Diamonds cost a great deal to obtain. Nature is\\nvery niggardly in supplying diamonds and lavish in sup-\\nplying sunshine. Diamonds have a very high price;\\ngold has also a very high price, though not so high silver\\nis less high, and so on down through the multitude of\\narticles, until a ton of some things is of less value than\\nan ounce of others. Why should there be such dif-\\nferences\\n43. Supply and Demand. The most usual theory by\\nwhich this is explained is that price is determined by\\nsupply and demand. This theory holds, first, that the", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0074.jp2"}, "75": {"fulltext": "VALUE OR PRICE 65\\nvalue of everything rises in proportion as the demand for\\nit exceeds the supply, and falls in proportion as the sup-\\nply exceeds the demand second, that this rise or fall con-\\ntinues until the demand and supply are equal. Sometimes\\nthis theory appears to be true, but it fails to explain why\\nany given commodity has any given price, and does not\\naccount for the great changes in prices, but only for\\nsome of their temporary variations. If supply and de-\\nmand determined it, when there was an over-supply of an\\narticle the price would keep falling until all the supply\\nwas sold, but it does not. Such a thing almost never oc-\\ncurs, except at a bankruptcy sale. Even in times of panic\\nand business depression, while prices do fall they do not\\nfall to the point of taking off the whole supply. When a\\nmerchant has a large supply of goods, part of which he\\ncannot sell, does he keep marking down and down and\\ndown until the last is sold Not at all. He marks down,\\nuntil he reaches a certain point, and stops. He will carry\\na large part of his stock over till the next season. Why?\\nBecause he reaches a point where any further fall of price\\nmeans loss. It gets down to what the article costs him,\\nand then he halts. He will borrow money if needs be, to\\ncarry the stock over, before he. will do as this theory of\\nsupply and demand says he will, because that would take\\nhim to bankruptcy.\\nThe same is true of the price of labor. When there\\nare some laborers out of employment is it true that wages\\nfall till they are all employed? No. On the contrary,\\nthough the demand for labor has never been as great as\\nthe supply for a whole twelvemonth, probably, during\\nthe entire century, yet wages have kept rising and rising.\\nWhy is this It is because another force has been at work,\\nwhich is altogether stronger than supply and demand,\\nnamely the cost of production. The laborer s living is", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0075.jp2"}, "76": {"fulltext": "66 OUTLINES OF SOCIAL ECONOMICS\\nmore expensive, because he uses more and lives better,\\nand so his wages have risen steadily, although the de-\\nmand for labor has not increased any faster than the\\nsupply, and very often not so fast.\\n44. What the Law of Value flust Explain. If there\\nis any law governing the value, or price, of articles and\\nof services, it must be able to explain several essential\\npoints\\nFirst, it must explain why any particular article or\\nquantity of labor is worth a given sum of money (that\\nis, has a certain price) at any given time. If the supply\\nof diamonds equals the demand, and the supply of cot-\\nton equals the demand, there is nothing in the supply\\nand demand theory to show why diamonds and cotton\\nshould not have the same value. Clearly, this theory is\\ninsufficient here.\\nSecond, it must explain why and how prices change,\\nand how far the change will go in either direction, up or\\ndown. As a part of this, it must explain why the price\\nof any article frequently stops falling long before the\\nover-supply is sold off; also, why the prices of some\\narticles may steadily decline from decade to decade, while\\nthe relation between the supply of and demand for these\\narticles remains practically the same all the time and, on\\nthe other hand, why the prices of other articles, and\\nwages of labor, may steadily rise from decade to decade,\\nwhile the supply and demand keep in about the same pro-\\nportion to each other.\\nThird, it must explain why prices for the same com-\\nmodities or for the same amount of labor may be very\\nmuch higher in one country than in another, while the\\nrelation between the demand and supply is practically the\\nsame in both countries.\\nIt should be said, here, for the sake of clearness, that", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0076.jp2"}, "77": {"fulltext": "VALUE OR PRICE 67\\nwhen we speak of demand, in the ordinary sense, we mean\\nthe demand of those only who actually ask for the given\\narticle, or can reasonably be expected to ask for it, when\\nit is offered, and will pay the price at which the owners\\nare willing to sell; we do not mean the unknown desire\\nfor the article by those who for any reason do not at-\\ntempt to buy it. Also, when we speak of supply, we mean\\nthe commodities or labor actually offered for sale in the\\nmarket; we do not mean the whole possible supply that\\ncould be offered if all the raw materials were worked up\\ninto finished products. Briefly, we mean only the actual\\n(including the reasonably expected) market demand, and\\nthe actual (including the proposed or planned) market\\nsupply. It is important to remember this in seeking the\\ntrue law of value or prices, because it is only this actual\\nsupply and actual demand that are factors in fixing the\\nprice of a commodity at any given time.\\nIn the next chapter we shall see that, while changes in\\nthe proportion between supply and demand often do\\ncause temporary variations in prices, the great controll-\\ning influence that fixes the value or price of commodities\\nand of labor and underlies all the important changes, is\\ncost of production. It is because sunshine does not cost\\nanything that it has no price. It is because diamonds do\\ncost a great deal to produce that they have a high price.\\nIt is because gold costs about thirty-two times as much\\nto produce as silver that it is about thirty-two times as\\nvaluable, even though more gold is being produced than\\nsilver. When gold only cost sixteen times as much to\\nproduce as silver, then its value was only sixteen times\\nas much, and that is when the much-talked-of ratio of\\nsixteen to one originated. There is a definite law ac-\\ncording to which cost of production determines prices,\\nand this we shall study next.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0077.jp2"}, "78": {"fulltext": "68 OUTLINES OF SOCIAL ECONOMICS\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapters II. and\\nIII., of Part II. The first of these chapters is on Eco-\\nnomic Value, explaining what it is and showing the dif-\\nference between value and utility. The second chapter\\ntakes up the theories about value and is entitled De-\\nmand and Supply Not the Law of Economic Prices.\\nAdditional References. In Mill s Principles of Po-\\nlitical Economy, Chapter II. of Book III., on Demand\\nand Supply, in Their Relation to Value. This chapter\\nis suggested because it contains the standard accepted\\nstatement of the demand and supply theory as presented\\nso long a time by the English-school economists.\\nEXTRACTS FROM READINGS.\\nUsefulness and Cost. That a thing may have any\\nvalue in exchange, two conditions are necessary. It must\\nbe of some use; that is (as already explained) it must\\nconduce to some purpose, satisfy some desire. No. one\\nwill pay a price, or part with anything which serves some\\nof his purposes, to obtain a thing which serves none of\\nthem. But, secondly, the thing must not only have some\\nutility, there must also be some difficulty in its attain-\\nment. Any article whatever, says Mr. De Quincey, to\\nobtain that artificial sort of value which is meant by ex-\\nchange value, must begin by offering itself as a means to\\nsome desirable purpose and secondly, even though pos-\\nsessing incontestably this preliminary advantage, it will\\nnever ascend to an exchange value in cases where it can\\nbe obtained gratuitously and without effort of which last\\nterms both are necessary as limitations. For often it will\\nhappen that some desirable object may be obtained grat-\\nuitously; stoop, and you gather it at your feet; but still,", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0078.jp2"}, "79": {"fulltext": "VALUE OR PRICE 69\\nbecause the continued iteration of this stooping exacts a\\nlaborious effort, very soon it is found, that to gather for\\nyourself virtually is not gratuitous. In the vast forests\\nof the Canadas, at intervals, wild strawberries may be\\ngratuitously gathered by shiploads; yet such is the ex-\\nhaustion of a stooping posture, and of a labour so mo-\\nnotonous, that everybody is soon glad to resign the ser-\\nvice into mercenary hands. From Mill s Political\\nEconomy, Chapter II. of Book III.\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. What is meant by the value of an article?\\n2. Is there any real difference between value and price? Ex-\\nplain.\\n3. What is barter, and what service does money perform in\\nexchange\\n4. In what way is value different from utility or usefulness?\\n5. Give illustrations of commodities that have very high utility\\nand low value, and others that have a high value and small\\nrelative utility.\\n6. What is the supply and demand theory of value?\\n7. Mention some of the defects of this theory.\\n8. What conditions and changes must the true law of value be\\nable to explain?\\n9. When we are speaking of their influence on value, just what\\ndo we mean by demand and what by supply\\n10. What is the real controlling influence that determines prices\\nand the changes in prices? Illustrate.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0079.jp2"}, "80": {"fulltext": "CHAPTER X.\\nCOST OF PRODUCTION.\\n45. Elements of Cost. Before discussing the relation\\nof cost of production to value, we ought to understand\\njust what we mean by cost. In economics, the cost of\\nproducing a commodity includes all the expenses in-\\nvolved in the whole process, from securing the original\\nraw materials down to the final delivery of the finished\\nproduct to the consumer. For example, in the produc-\\ntion of wheat bread, scores of different expenses are in-\\ncurred, the cost of the seed, the labor of the farmer\\nand his men, the miller s charge for grinding, the ex-\\npense of bags and barrels, the service of the railroads and\\nsteamships in transporting the flour, the time and effort\\nof the merchant in storing, selling and delivering the\\nflour to the buyer, or the labor of the baker in making it\\nup into bread and at every stage is added the taxes and\\ninsurance and repairs which farmer, miller, railroad,\\nmerchant and baker have to pay in order to carry on their\\nrespective industries.\\n46. Surplus is Not Cost. It is important to note that\\nrent of land is not included among the economic costs\\nof production nor is the interest paid for use of capital\\nnor is the profit earned by the managers of any of the\\nvarious industries concerned in the process. The reason\\nfor this is that rent, interest and profits are all forms\\nof surplus, left over in the hands of some of the pro-\\nducers after their expenses of production are paid. In\\n70", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0080.jp2"}, "81": {"fulltext": "COST OF PRODUCTION 7 1\\nevery industry many of the concerns have one or more\\nof these forms of surplus left on hand, but there are\\nalso some concerns which are running very close to the\\nwind/ not earning enough to pay either rent, interest\\nor profits. This means that the price of the products is\\nonly high enough to cover the bare costs of these poorer\\nconcerns, and, so long as they are needed to help supply\\nall that is demanded, the price cannot be lower. Now the\\nprice of an article, at wholesale, is practically uniform in\\nany given market, no matter where the different parts of\\nthe supply come from, provided of course they are all of\\nequally good quality. Therefore, it is clear that the\\nnecessary price of an article at any given time does not\\ninclude rent, interest or profits; it includes only the\\nitems of real cost, and these, when we follow them back,\\nall turn out to be items of labor and service.\\nThe cost of the raw materials is, in the first place, the\\nexpense of the labor to take them out of the earth, mines\\nor forests. The cost of manufacturing, transporting, and\\nselling the product is the labor of the employees, services\\nof managers and salesmen, and generally the expense of\\nreplacing and repairing machinery, buildings, etc., which\\nsimply calls for different extra forms of labor, and for\\nmore raw materials, whose cost we have already seen is\\nlabor cost. Taxes go to pay for services rendered by\\nthe government, while insurance is simply a means of\\ndividing up the losses from fires and accidents in small\\namounts throughout the business community.\\n47. How Profits Arise. Much of this may at first\\nseem quite unclear. We all know of cases where farm-\\ners and manufacturers and merchants have to pay rent\\nfor their land and interest on their capital; in fact, we\\nknow that the majority do. To them, these are items of\\ncost just as much as labor or taxes. But it must be re-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0081.jp2"}, "82": {"fulltext": "72 OUTLINES OF SOCIAL ECONOMICS\\nmembered that we are not now considering the costs in-\\ncurred by any given producer, but only the case of those\\nwhose cost of production is just covered by the price they\\nreceive for the product. These are the producers who\\nare not paying or cannot pay rent or interest, and are\\nnot earning any profits, above the owner s or manager s\\nsalaries. That is why we say that rent, interest and profits\\nare not elements in the price-fixing cost of production,\\nwhatever they may be to the better managed or located\\nconcerns that are producing at less than the price-fixing\\ncost point.\\nIn the conclusion of the last chapter it was stated that\\ncost of production is the great controlling factor that de-\\ntermines value or price. Of course, this does not mean\\nthat the price of each particular article is determined by\\nthe cost of producing that article, because, as we have\\njust seen, the cost is different in the case of each different\\nfactory or farm, while the price of the product in the\\nsame market is practically uniform. Prices have a kind\\nof fluidity; that is, within the limits of the same market\\nthey are, under ordinary competition, very much like\\nwater, as Mr. Mill expressed it; constantly seeking a\\nlevel. They do not always reach that level, and neither\\ndoes water. The swells and breakers of the ocean surface\\nmake it always uneven, but there is a force constantly at\\nwork tending to smooth out this unevenness. Wind and\\ntide are constantly creating disturbances, but gravitation\\nis all the time tending to force each particle of water to\\nseek the general level. Hence it is truly said that water,\\nif not obstructed by artificial barriers, finds its level.\\nThis is also true of prices, provided there are no ar-\\nbitrary obstructions. Within any given market where\\ncompetition operates there is a constant tendency to-\\nwards uniformity of prices for the same article. Speak-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0082.jp2"}, "83": {"fulltext": "COST OF PRODUCTION 73\\ning of this tendency David Ricardo, the great English\\neconomist, said There cannot be two prices for the\\nsame thing in the same market. But this is not strictly\\ntrue there are nearly always temporary disturbances.\\nThere may be two prices for the same article for a little\\nwhile, until the consumers find it out. But it is strictly\\ntrue that there is a constant tendency towards a uniform\\nprice for the same thing in the same market.\\nOf course, then, if the cost of furnishing the different\\nportions of the supply to this common market is differ-\\nent, while the price is uniform, some of the producers\\nwill have a large surplus, divided between rent, interest\\nand profits others will have a fair surplus, others only a\\nvery small margin, and still others, whose cost is highest,\\nwill have no surplus at all. For convenience, the word\\nprofit is often used in the broad sense of surplus, in-\\ncluding rent, interest, and profits in the narrower sense\\nof the owners or managers income.\\nSince the cost is different for each different portion of\\nthe supply, how can cost of production determine what\\nthis uniform level of prices shall be, for any given com-\\nmodity? Manifestly, it must be the cost of some special\\nportion of the supply that establishes the price level for\\nall. The process is as follows\\nCompetition between producers, together with the ef-\\nforts of consumers to buy at the lowest price, tends to\\nforce the level of prices downward. This is a common-\\nplace fact, familiar to everybody. On the other hand,\\nthe upward resistance to this competitive pressure is cost.\\nSuppose, for illustration, the costs of supplying a given\\ncommodity from different factories to be posts of differ-\\nent lengths under a common platform. We can easily\\nsee that the platform will be maintained at a height equal\\nto that of the longest posts, so long as they are strong", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0083.jp2"}, "84": {"fulltext": "74 OUTLINES OF SOCIAL ECONOMICS\\nenough to hold it up. If a few of the posts are ten feet\\nhigh, and some others only nine, eight and a half and\\nseven, the shorter ones will do nothing towards holding\\nup the platform. It will rest entirely on the ten-foot\\nposts. If for any reason the long posts give way, the\\nplatform will drop to the level of the next longest ones,\\nand so on.\\nNow if we will think of these posts as being costs of\\nproduction in as many different concerns, and the plat-\\nform as being the level of prices, we will get an idea of\\nhow the level of prices is held up by costs. Those longest\\nposts represent the greatest cost, and the price must at\\nleast be equal to that cost so long as they remain stand-\\ning. At these points the price and cost meet, and of\\ncourse there is no profit. Those concerns represented by\\nthe longest posts, or highest cost, hold up the price as\\nlong as they can. They have no margins of profit.\\nThose concerns that produce at less than this largest cost\\nrepresent the shorter posts; they get the same price for\\ntheir product as the dearer producers, and so of course\\nhave the difference in profits, varying according to their\\nrespective costs per unit of product, or, in our illustra-\\ntion, the lengths of the various posts.\\nSo we find in every market the price level maintained\\nby a few of the dearest producers. In other words,\\nprices tend to a level on the basis of cost of production\\nnot the cost of producing each particular article, nor the\\ncost of producing the cheapest article, but the cost of\\nproducing the most expensive part of the supply which\\nthe market demands. If some of the cheaper producers\\nincrease their supply so that the dearest group are no\\nlonger needed, these dearest producers are forced to\\nadopt cheaper and better methods of production or else\\nthey will be crowded out by competition. In either case,", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0084.jp2"}, "85": {"fulltext": "COST OF PRODUCTION 75\\nthe price of the product soon falls to the cost level of\\nthe next dearest group of producers. So, when a manu-\\nfacturer introduces new and successful machinery, which\\nincreases his output without much if any increase in his\\ncost of production, he reaps an increased profit for a time,\\nuntil his competitors get similar improved machinery or\\nuntil some of the poorer competitors are crowded out of\\nthe field. Then the price falls again, and the manufac-\\nturer no longer gets any special advantage from his ma-\\nchine, except that it prevents him from falling behind in\\nthe race. What was for a time his profit is now being en-\\njoyed by the public in the shape of lower prices.\\n48 High Cost and Low Cost Production. Of course,\\nmany factors enter in, to determine whether the cost of\\nproduction in different concerns is high or low. Near-\\nness to supplies and fuel, nearness to market, efficiency\\nof machinery, expertness of management and skilfulness\\nof labor, all are elements in giving a low cost of produc-\\ntion as compared with concerns that have to bring their\\nraw materials and coal from a distance, or that have to\\ngo a long way to find a market, or that use old, slow and\\nworn-out machinery, or that are managed by old-fash-\\nioned, illiberal methods and employ a poor grade of labor.\\nRight at this point we should correct the very serious\\nerror that cheap labor necessarily means cheap produc-\\ntion. We think of low-wage laborers as cheap producers.\\nSometimes these are the very dearest producers; that is,\\nthe most expensive. The measure of cheapness in labor\\nis not always the amount paid per day but the cost of the\\nlabor per unit of product. If a laborer employed at a\\ndollar a day only produces half as much as one employed\\nat a dollar and a half, the dollar-a-day man is dearer than\\nthe dollar-and-a-half man. The dearness or cheapness\\nof laborers depends upon the cost of the labor necessary", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0085.jp2"}, "86": {"fulltext": "y6 OUTLINES OF SOCIAL ECONOMICS\\nto turn out a given quantity of product. If everything\\nwere clone by hand it would generally be true that low-\\npaid laborers would be cheap producers, but the great\\ncheapening power in production is not muscle but machin-\\nery. The productiveness of human muscle can never be\\nincreased very much. The fifteen-cent-a-day Japanese and\\nten-cent-a-day Chinaman are as dexterous and expert\\nwith their fingers as the average three-dollar-a-day\\nAmerican. The difference in this respect is very limited.\\nThe great gain in productive power comes from the use\\nof science and machinery.\\nFor instance, fifty years ago a weaver could attend to\\nonly two looms. Some weavers would do a little more\\nwith two looms than others, but the best could not do\\ntwice as much as the poorest. These looms would only\\nmake about sixty to seventy-five revolutions a minute.\\nWith the improved machinery used to-day some weavers\\ncan mind twenty and even more than twenty looms, run-\\nning at the rate of two hundred and twenty revolutions a\\nminute. This is a reduction in the cost which no amount\\nof hand dexterity could ever produce.\\nThis leads directly to the greatest of all reasons why\\nlow-wage labor is really dearer than high-wage labor;\\nnamely, the fact that high wages make a large market for\\nproducts, and it is only when there is a large market that\\nmachinery and other cheapening processes can be used in\\nthe production of wealth. This point was emphasized,\\nit will be remembered, in the lesson on Causes of Pro-\\nduction. Twenty looms minded by one operator and\\nmaking two hundred and twenty revolutions a minute\\nwill produce one thousand yards of cloth a day, which\\nis about twenty times more than the weaver of fifty years\\nago could produce. Of course, the use of such looms can\\nonly be made profitable if this immensely increased prod-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0086.jp2"}, "87": {"fulltext": "COST OF PRODUCTION JJ\\nuct of cloth can be sold. The poorer the working people of\\nthe country, are that is, the lower their wages the less\\nthey can buy of the cloth, and hence the less they can con-\\ntribute toward making this improved machinery possible.\\nLarge consumption, which nearly always depends upon\\nhigh wages, except in the case of luxuries sold to the\\nrich, is necessary to the development and profitable use\\nof the most economic and cheapest methods of produc-\\ntion. In the long run this is always true.\\nThe forces which give lower prices, then, are not\\nmerely the forces which develop the dexterity of human\\nmuscle but are chiefly the forces which bring improved\\nmachinery and productive methods into use. These forces\\nare not physical but social. They arise not out of the\\nlaborer s personal endurance and excessive drudgery, but\\nout of his social refinement, education, high standards of\\nlife and large consumption, all of which result in high\\nwages. The continuous lowering of prices, which means\\ncheapening of wealth for everybody, comes not through\\nlow wages but through larger use of machinery, and this\\nresults from the increasing demand for an increasing va-\\nriety of products by the community. In other words,\\nthis demand comes chiefly from a higher standard of so-\\ncial life among the wage-earning people.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapters IV. and\\nV of Part II. These chapters are entitled respectively\\nThe Law of Economic Prices and The Law of Cost\\nof Production. and explain in more detail the points we\\nhave just covered.\\nAdditional References. In David Ricardo s Princi-\\nples of Political Economy and Taxation, Chapter XXX.,\\nOn the Influence of Demand and Supply on Prices.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0087.jp2"}, "88": {"fulltext": "78 OUTLINES OF SOCIAL ECONOMICS\\nMr. Ricardo, whose Political Economy was published\\nin 1817, was practically the only great English economist\\nto deny the demand and supply theory and assert that\\nprices are governed by cost of production, but even he\\ndid not see the full application and wide scope of his\\ndoctrine. Some of his reasoning as to how cost of pro-\\nduction is determined has been discarded in the light of\\nlater economic investigations.\\nIn Mill s Principles of Political Economy, Chapter\\nIII. of Book III. Although Mill was the strongest of all\\ndefenders of the supply and demand theory, he recog-\\nnized the influence of cost of production in determining\\nprices under certain conditions. This chapter treats Of\\nCost of Production, in Its Relation to Value.\\nEXTRACTS FROM READINGS.\\nCost, Not Quantity, Determines Value. It is the cost\\nof production which must ultimately regulate the price of\\ncommodities, and not, as has been often said, the propor-\\ntion between supply and demand; the proportion\\nbetween supply and demand may, indeed, for a time,\\naffect the market value of a commodity, until it is sup-\\nplied in greater or less abundance, according as the de-\\nmand may have increased or diminished; but this effect\\nwill be only of temporary duration.\\nDiminish the cost of production of hats, and their\\nprice will ultimately fall to their new natural price, al-\\nthough the demand should be doubled, trebled, or quad-\\nrupled. Diminish the cost of subsistence of men, by di-\\nminishing the natural price of the food and clothing, by\\nwhich life is sustained, and wages will ultimately fall,\\nnotwithstanding that the demand for laborers may very\\ngreatly increase. From Ricardo s Political Economy\\nand Taxation, Chapter XXX.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0088.jp2"}, "89": {"fulltext": "COST OF PRODUCTION 79\\nThe Tendency of Value to Equal Cost. Adam Smith\\nand Ricardo have called that value of a thing which is\\nproportional to its cost of production, its Natural Value\\n(or its Natural Price). They meant by this, the point\\nabout which the value oscillates, and to which it always\\ntends to return; the centre value, towards which, as\\nAdam Smith expresses it, the market value of a thing is\\nconstantly gravitating; and any deviation from which is\\nbut a temporary irregularity, which, the moment it ex-\\nists, sets forces in motion tending to correct it. On an\\naverage of years sufficient to enable the oscillations on\\none side of the central line to be compensated by those\\non the other, the market value agrees with the natural\\nvalue but it very seldom coincides exactly with it at any\\nparticular time. The sea everywhere tends to a level but\\nit never is at an exact level its surface is always ruffled\\nby waves, and often agitated by storms. It is enough that\\nno point, at least in the open sea, is permanently higher\\nthan another. Each place is alternately elevated and de-\\npressed but the ocean preserves its level.\\nTo recapitulate demand and supply govern the value\\nof all things which cannot be indefinitely increased; ex-\\ncept that even for them, when produced by industry,\\nthere is a minimum value, determined by the cost of pro-\\nduction. But in all things which admit of indefinite\\nmultiplication, demand and supply only determine the\\nperturbations of value, during a period which cannot ex-\\nceed the length of time necessary for altering the supply.\\nWhile thus ruling the oscillations of value, they them-\\nselves obey a superior force, which makes value gravitate\\ntowards Cost of Production, and which would settle it\\nand keep it there, if fresh disturbing influences were not\\ncontinually arising to make it again deviate. To pursue\\nthe same strain of metaphor, demand and supply always", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0089.jp2"}, "90": {"fulltext": "80 OUTLINES OF SOCIAL ECONOMICS\\nrush to an equilibrium, but the condition of stable equi-\\nlibrium is when things exchange for each other according\\nto their cost of production, or, in the expression we have\\nused, when things are at their Natural Value. From\\nMill s Principles of Political Economy, Chapter III.\\nof Book III.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. Name some of the elements in the economic cost of pro-\\nducing a commodity.\\n2. Why are not rent, interest and profits included in our reck-\\noning of economic costs.\\n3. When we trace back the various items of real cost, into\\nwhat one form of cost do they resolve themselves? Il-\\nlustrate.\\n4. Explain how some industries have an economic surplus.\\nincluding rent, interest and profits, while others do not.\\n5. Since we know that rent and interest are items of cost to\\nsome producers, in what sense do we mean that they are\\nnot part of the economic cost of production?\\n6. What is the general tendency of prices in the same market?\\nWhat can you say of the variations from this tendency?\\n7. Explain just how cost of production determines prices. Is\\nit the cost of each particular article or of some definite\\npart of the whole supply If the latter, what part is it,\\nand why?\\n8. How does competition affect prices? What is the effect\\nof improved machinery and better methods of produc-\\ntion?\\n9. What are some of the conditions that cause high and low\\ncost of production, respectively?\\n10. Why is low-wage labor in the long run the most costly\\nof all labor? Explain just how the use of improved\\nmachinery, giving cheap production, finally depends on\\na high level of wages throughout the community.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0090.jp2"}, "91": {"fulltext": "CHAPTER XI.\\nDISTRIBUTION OF WEALTH.\\n49. What Distribution Means. Distribution is some-\\ntimes spoken of as if it meant the transportation and\\nselling of goods. What is meant by distribution in eco-\\nnomics is the division of wealth among the various fac-\\ntors that share in its production. There are really but\\nfour economic avenues or channels by which wealth is\\ndistributed throughout the community. They are wages\\n(including salaries), rent, interest and profits. Every-\\nbody, except those supported by charity, gets his or her\\nincome and share of the wealth produced in one of those\\nforms.\\n50. Wages. Wages are a definite kind of income, dif-\\nferent in character from either rent, interest or profit.\\nWages are often spoken of as if they meant any and\\nevery kind of reward for labor. This is a mistake. If a\\nman plants a hill of potatoes the product is the reward for\\nhis labor, but it is not wages. It is simply wealth he has\\nhelped produce. Wages are a specific agreed sum paid by\\none person to another for a certain amount of service.\\nWages are the price of labor, and are always a definite\\nstipulated income. They are not an uncertain variable in-\\ncome, depending for their amount on the success or\\notherwise of the industry. They are a definite sum\\nagreed upon before the service is rendered, and must be\\npaid if the business is to be carried on at all, because the\\nlaborer must at least be fed before he can work. All\\n81", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0091.jp2"}, "92": {"fulltext": "82 OUTLINES OF SOCIAL ECONOMICS\\nforms of stipulated income paid for services may be\\nproperly classed as wages. Moreover, wages are nearly\\nalways a part of the cost of production, because all pro-\\nduction involves labor and under modern conditions\\npractically all labor is performed for wages. Conse-\\nquently wages are never a division of profits, because\\nprofits are the surplus remaining after all costs are paid.\\n51. Rent, Interest and Profits. Rent is different\\nfrom wages in that it is not a necessary part of the cost\\nof production. There is a good deal of production that\\ndoes not involve rent-paying at all. Rent is a part of the\\nsurplus or profit arising from the use of land, just as in-\\nterest is a part of the surplus arising from the use of capi-\\ntal. If a producer owned all the land he used and all the\\ncapital invested in his business, there would be neither\\nrent nor interest to pay. He might pay wages, or if he did\\nthe work himself his own cost of living would constitute\\nthe labor cost equivalent to wages. All the remaining\\nvalue of the product above what it costs to produce it\\nwould be his profits. If he did not own the land but did\\nown the capital he would then have to pay, first, wages\\nfor the labor, and out of the remaining profits he would\\nhave to pay a part for rent of land. The surplus created\\nby any special fertility or advantageousness of the land\\nhe uses is paid to the landowner for the use of it, and is\\ncalled rent. If he does not own the capital he uses he\\nthen has to pay interest for borrowed capital, and thus\\nhis profits are still further reduced by the amount paid\\nfor interest. If anything is left after paying wages, rent\\nand interest, it is his profits. If the total surplus is no\\nmore than equal to the rent and interest, he will have no\\nprofits, as very often happens. Thus it may be said that\\nwages are a stipulated amount paid for labor, rent is a\\nstipulated amount paid for the use of land, interest is a", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0092.jp2"}, "93": {"fulltext": "DISTRIBUTION OF WEALTH 83\\nstipulated amount paid for the use of capital, and profits\\nare the possible surplus left after everything else is paid.\\nIt should not be forgotten, however, that rent and in-\\nterest, while stipulated in amount, are not always ele-\\nments in cost of production, while wages, or labor cost in\\nsome form, are always an element. There is no produc-\\ntion without paying the labor cost in some way or other,\\nalmost always in wages. Rent and interest are payments\\nout of the surplus or profit.\\nIf, for instance ,a farmer wants a piece of land, and\\nthe owner asks ten dollars an acre for the use of it, the\\nfarmer will only pay ten dollars provided he can clear\\nthat much or more by using it. If he cannot realize\\nfrom the product of the land above all costs more than\\nten dollars he will refuse to take it at that rent. If he\\ncan realize fifteen dollars he will gladly pay ten or even\\ntwelve dollars as rent, but he will not pay sixteen dollars,\\nbecause that would be giving more than the gain obtained\\nby using the land. In other words, rent is a part of the\\nsurplus created by a given piece of land, and is paid by\\nthose who use it to those who own it. Sometimes all the\\nsurplus coming directly from the land is paid in rent,\\nsometimes only a part of it, but of course more than the\\nsurplus will not be continuously paid.\\nInterest is exactly like rent, only it is paid for the use\\nof capital, such as machinery, tools, stock, etc., but a per-\\nson will pay interest for capital to use in business only\\non condition that he can make more than the interest by\\nso doing. If new capital will not increase his remainder\\nof profit he will refuse to use it, but in some industries,\\nlike bonanza gold mining, very high rates of interest are\\npaid because large margins of profits are realized. In-\\nterest is generally higher in this country than in Europe,\\nbecause profits are usually larger here than abroad.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0093.jp2"}, "94": {"fulltext": "84 OUTLINES OF SOCIAL ECONOMICS\\nRent and interest, therefore, are divisions of the total\\ngain among the owners of borrowed land and borrowed\\ncapital. The remainder goes to those who conduct the\\nindustry, to the extent that the total profits are larger\\nthan the amount due for rent and interest. To illustrate\\nif a business will yield 15 per cent, surplus, and the person\\nconducting it owns both the land and capital employed,\\nthen he will have the total profit of 15 per cent. If he\\nowns only the capital but has to hire the land at a rent\\nequal to one-third of his surplus he will have only a profit\\nof 10 per cent. If he also borrows his capital and has to\\npay another third of his surplus in interest, he will only\\nhave 5 per cent, profit left.\\nRent and interest are not parts of the cost of pro-\\nduction, which affect the price of the commodity, but are\\na portion of the general surplus or profit. In other words,\\nwages or labor expense are cost of production rent, in-\\nterest and profits are surplus. They may all go to one\\nperson or be divided among many, according as the land\\nand capital employed is owned by one or by different\\npeople, but if the latter the total gains or surplus created\\nby the industry will be divided among these three. It may\\nall go to rent and interest and leave no profits, or it may\\ngo equally to all three, but there will never be profits\\nwithout first paying the rent and interest, though there\\nmay be rent and interest without any profits. Rent, inter-\\nest and profits are divisions of the surplus created by\\nthe quality of the land, and by the use of capital, and\\nby the skilful management of the business.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapter I. of\\nPart III., on The Distribution of Wealth. In this chap-\\nter special attention is devoted to showing the order in", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0094.jp2"}, "95": {"fulltext": "DISTRIBUTION OF WEALTH 85\\nwhich wealth is distributed through the four economic\\nchannels; first wages, then rent and interest, lastly\\nprofits.\\nFor Additional References see subsequent chapters, on\\nWages, Rent, Interest and Profits, respectively.\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. What is the economic meaning of distribution of wealth?\\n2. How many channels of economic distribution are there?\\nWhat are they?\\n3. Define wages. What other form of income does the term\\nwages, in economics, include?\\n4. Do wages always include all labor cost? If not, what forms\\nof labor cost are not represented by wages?\\n5. What is rent? How does it differ from wages?\\n6. For what is interest paid? How does it differ from wages,\\nand wherein is it similar to rent?\\n7. Define profits. What is the difference between general or\\ntotal profits (or surplus and the employer s, final prof-\\nits?\\n8. In what order is wealth distributed through these four chan-\\nnels?\\n9. Explain by illustrations how the method of distribution\\nvaries according to the ownership of the land and capital\\nused.\\nto. Why are wages the first and unavoidable item of distribution,\\nwhile rent and interest are uncertain, and profits wholly\\ndependent on the success of the business?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0095.jp2"}, "96": {"fulltext": "CHAPTER XII.\\nWAGES.\\n52. Wages an Index of Civilization. Wages and\\nsalaries are the forms of wealth-distribution through\\nwhich the great majority of the community receive their\\nincome, especially in modern countries. The class whose\\nincome reaches them in this way is constantly increasing\\nas civilization advances. Strictly speaking, wages are a\\nstipulated amount paid for services. It may be by the\\nday, week, month or year, only when it is by the year\\nit. is called salary, and is usually larger in total amount.\\nWages in the broad sense include all stipulated amounts\\npaid for services. They are the price of labor.\\nSince wages are the means by which the laboring class\\nsecures command over the necessities, comforts, con-\\nveniences and luxuries of life, it is clear that the stand-\\nard of wages is a very good sign of the material and\\nsocial condition of the people of any nation. Whatever\\nelse may be said of a nation, if wages are low the masses\\nof the people are sure to be poor, and if the people are\\npoor civilization is backward. There is no more reliable\\ngeneral index to a nation s welfare and progress than\\nthe wage conditions of its people, and nothing more\\nsurely contributes to a people s progress than a general\\npermanent rise of real wages, although there are many\\nother things that affect their welfare in various ways.\\n53. Real and Nominal Wages. From the laborer s\\nstandpoint, the mere amount of money he earns does not\\n86", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0096.jp2"}, "97": {"fulltext": "WAGES 87\\nprove whether his wages are relatively high or low it de-\\npends on what and how much he can buy, with his wages.\\nFor instance, when wages were $10 or $15 a day in the\\nKlondike gold fields, prices of ordinary necessities were\\nso very high that the laborer was unable to buy as much\\nwith his money as a New England factory operative on\\n$1.50 or $2 a day could with his. Therefore, we make\\na distinction between the money rate of wages and the\\npurchasing power of the laborer s earnings. The amount\\nreceived in money is his nominal wages the amount of\\ncommodities or whatever he can buy with his money in-\\ncome is his real wages. When we are considering\\nwages as an item in cost of production we can take ac-\\ncount only of the nominal or money wages, but when we\\nspeak of wages as a measure of the workingmairs wel-\\nfare or standard of living or advancement in civilization\\nwe mean, of course, real wages.\\n54. Standard of Living. How are wages, or the\\nprice of labor, determined? By the operation of the\\nsame principle of cost that determines the prices of com-\\nmodities. The influences that operate upon a manufac-\\nturer in compelling him to demand a certain price for his\\noutput operate upon laborers in compelling them to\\ndemand a certain price for their labor. In the case of\\na manufacturer it is the expense involved in furnishing\\nthe product that fixes the minimum level of price at\\nwhich he can afford to sell. In the case of laborers it is\\nthe normal, customary and established expense of living\\nthat furnishes the basis of their demand for wages.\\nThis is not always understood by the laborers them-\\nselves, but, like the silent operation of forces in nature,\\nit is an unconscious fact that is ever present and finally\\ndecides the result. In other words, what it has become\\nnecessary for the laborers to have, according to the social", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0097.jp2"}, "98": {"fulltext": "88 OUTLINES OF SOCIAL ECONOMICS\\nconditions under which they live, constitutes the real\\nforce of their demand and the measure of the amount of\\ntheir wages. Laborers in China will seldom get more than\\nten or twelve cents a day, because the material and social\\nrequirements under which they live can be satisfied with\\nthe meager supply that ten or twelve cents a day will fur-\\nnish. In more advanced countries this amount is not only\\ninadequate but it is so far short of fulfilling the living-\\nnecessities that even employers do not think of offering\\nit. The standard of life, for instance, in England and\\nthe United States has advanced so far that no industry\\ncould exist at all, whose life depended upon paying ten\\ncents a day for labor. The thought would be dismissed\\nas impossible; in fact, it becomes a part of the primary\\nestimates of a business, before it is started, that it must\\nbe able at least to pay the scale of wages that the estab-\\nlished standards of living of the country demands. If\\nit is in a community or industry that requires five dollars\\na day to be paid, as in some cases in the United States, a\\nnew business will only be established if its prospects will\\nafford that, but if it is an industry or community where\\ntwenty-five cents a day can be paid, the business will be\\nstarted on that basis.\\nWhether the wages are twenty-five cents a day, or\\ntwo, three or five dollars a day, is not determined by the\\ndesire of the capitalists to pay more or less. They will\\nnearly always pay the least they. can. The wages are\\ndetermined by the necessary expensiveness of the labor-\\ning class in that country or community in other words,\\nby the minimum amount the established standard of liv-\\ning requires in order to continue.\\n55. Influences that Affect Wages. Clearly, then,\\nwages are affected by whatever influences affect the\\ntastes and habits of the laboring class, because the expen-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0098.jp2"}, "99": {"fulltext": "WAGES 89\\nsiveness of labor is governed by the laborers standard\\nof living. Where they are content and can live under\\nconditions that compel them to eat and sleep and cook\\nin the same room, they can with comparative ease be in-\\nduced to accept low wages that will cover that sort of\\nliving. But where the laborers social and domestic\\nhabits, education and standards of life are such that they\\nrefuse to eat and sleep in the same room, refuse to live\\nunder conditions where they cannot have decent housing\\nand sanitation, carpets and modern furniture and some\\nliterature and social entertainment, they will not forego\\nthese without discontent, strikes and disturbance, and\\ncannot be induced to work for wages that will not supply\\nthese conditions. This difference in habitual tastes and\\ndesires makes the difference in rates of wages. Nothing\\nbut habitual acceptance of lower conditions can establish\\nlow wages, and nothing but the education and social re-\\nfinement which demands better conditions can exact high\\nwages. All the influences, therefore, of education, social\\nopportunity, varied experience/ cultivation of new ideas\\nand tastes, are forces which push wages upward.\\nIn short, all the influences which awaken the mind,\\nsharpen the ideas, refine the tastes, cultivate the manners,\\nvary the experience and broaden the life of the citizen,\\nmake irresistibly for a higher plane of wages. On the\\nother hand, anything and everything which tends to re-\\npress new aspirations and opportunities for seeing new\\nthings and people, undergoing new experiences, or having\\nnew desires, tends to either stop the rise or cause a fall\\nin wages. If it were possible to make American laborers\\nas contented with a cotton smock, wooden shoes, rice and\\nchopsticks as are the hundreds of millions in China, it\\nwould be just as easy to pay the Chinese rates of wages.\\nAnd, if it were possible to make the average Chinaman", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0099.jp2"}, "100": {"fulltext": "90 OUTLINES OF SOCIAL ECONOMICS\\ninsist upon a variety of clothing, some furniture, and the\\nordinary features that enter into the life of the American\\ncitizen, it would not be difficult to raise his wages to the\\nAmerican level in fact, it would be impossible to keep\\nthem much below.\\n56. Rffect of Charity on Wages. In accordance\\nwith this general principle, nearly all forms of charity,\\ntips and perquisites, or special privileges in any form, if\\nthey are at all general, have the effect of lowering wages.\\nThere is no class in the community among whom any of\\nthese forms of regular charitable aid are given where\\nwages are not correspondingly lower. It is a custom in\\nsome places, quite common in England and other Eu-\\nropean countries and in some parts of this country, to\\ngive in addition to wages certain privileges, like the use\\nof a small piece of land, the right to keep a pig or a cow,\\nor the right to accept fees and tips. In every such in-\\nstance, whether it be the waiters and barbers and livery-\\nmen who receive tips, laborers who receive a pig and\\ncow, or public officials who receive fees, the wages or\\nsalaries are lower than in similar occupations where these\\nextras are not allowed.\\nIn the eighteenth century in England it became a cus-\\ntom (which finally had the force of law) to grant parish\\n(pauper) allowances to laborers when the price of bread\\nrose above a certain point. The natural way to have met\\nthis, in accordance with the true principle of wages,\\nwould have been to raise wages when the cost of living\\nrose. But this was contrary to the notion of those who\\npaid wages the employers, acting as public officials,\\nfixed the wages twice a year by law and proclamation,\\nand, being taxpayers as well, had to supply the difference\\nin pauper allowances. In other words, when they made\\nthe wages inflexible and fixed, by law, they were forced", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0100.jp2"}, "101": {"fulltext": "WAGES 91\\nto supply a charitable addition varying with the cost of\\nliving. If they had withheld the charity then the wages\\nwould have varied, but the variation of the one or the\\nother along with the cost of living was certain to occur.\\nThe proof of this came when the habit of piecing out\\nwages with parish allowances was finally prohibited.\\nWages immediately went up, by the whole, and very soon\\nmore than the whole difference. This same principle\\noperates wherever wages or stated incomes exist. Any\\nform of gratuity given to laborers, if it becomes at all\\ngeneral, finally operates to reduce their wages.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapter III. of\\nPart III., as far as the second paragraph on page 208.\\nThis chapter is on The Law of Wages, and the portion\\ngiven states the test of a scientific law of wages, defines\\nwages, and explains in detail the influence of the stand-\\nard of living in determining wage rates.\\nAdditional References. In Gunton s Wealth and\\nProgress, Sections I. and II. of Chapter I., Part II., dis-\\ncussing respectively the old wages-fund theory and Dr.\\nFrancis A. Walker s theory of how wages are deter-\\nmined also, the whole of Chapter II., Part II. Wealth\\nand Progress is devoted entirely to a critical examina-\\ntion of the wages question, and this latter chapter defines\\nwages, explains nominal and real wages, the economic\\nlaw of wages, standard of living and cost of living.\\nIn Marshall s Economics of Industry, Chapters III.,\\nIV. and V. of Book VI., all three chapters being on De-\\nmand and Supply in Relation to Labor. Prof. Marshall\\ndoes not advance any very definite law of wages, but\\nmakes many interesting comments on systems of pay-\\nments, kinds of employment, supplementary wages, etc.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0101.jp2"}, "102": {"fulltext": "92 OUTLINES OF SOCIAL ECONOMICS\\nIn Hadley s Economics, Chapter X., on Wages,\\nand in Francis A. Walker s Wages Question, Chapter\\nIX. of Part I. Both these chapters are chiefly devoted\\nto exposing the errors of the wages-fund theory.\\nChapter VI., in Book L, of Walker s Wages Question,\\nmight well be read because of its refutation of the famous\\nbut discouraging doctrine of Malthus, a century ago, that\\npopulation all the time tends to increase faster than the\\nmeans of subsistence. A photograph and sketch of Mal-\\nthus may be found in G union s Magazine for September,\\n1898.\\nIn Sir Thomas Brassey s Work and Wages, Chap-\\nter III., entitled Cost of Labor Cannot be Determined\\nby the Rate of Wages. This is devoted to showing that\\nhigh wages do not necessarily mean high labor cost, in\\nreckoning the costs of production in an industry; and\\nincidentally illustrating the relation of standard of living\\nto wages.\\nEXTRACT FROM READINGS.\\nWages Fund a Myth. As has been shown in a\\nformer chapter, wages are really paid out of current pro-\\nduction, and not out of capital, as the wage-fund theory\\nassumes. Granting, for the moment, that wages are\\nwholly advanced out of capital to supply the immediate\\nnecessities of the laborer, I have, I think, abundantly\\nproved that the two questions, whether labor shall be\\nemployed at all, and, secondly, what wages shall be paid\\nto laborers if employed, are decided by reference to pro-\\nduction and not to capital. It is the prospect of a profit\\nin production which determines the employer to hire la-\\nborers; it is the anticipated value of the product which\\ndetermines how much he can pay them. The product,\\nthen, and not capital, furnishes at once the motive to", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0102.jp2"}, "103": {"fulltext": "WAGES 93\\nemployment and the measure of wages. If this be so, the\\nwhole wage-fund theory falls, for it is built on the as-\\nsumption that capital furnishes the measure of wages\\nthat the wage-fund is no larger because capital is no\\nlarger, and that the only way to increase the aggregate\\namount which can be paid in wages is to increase capital.\\nBut, as matter of fact, wages are not wholly advanced by\\ncapital, but are paid out of the product of the labor for\\nwhich wages are due, as has been shown in the preceding\\nchapter. This alone, which is indisputable, invalidates\\nthe theory we are considering. From Francis A.\\nWalker s Wages Question, Chapter IX., Part I.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. In what form do the majority of the people in modern coun-\\ntries receive their incomes?\\n2. Why are wage rates among the best indications of a nation s\\nstate of civilization?\\n3. Explain the difference between real and nominal wages.\\n4. What is meant by the standard of living?\\n5. Why and how does the standard of living determine wage\\nrates? Illustrate by the experience of different countries.\\n6. What are some of the influences that affect the standard of\\nliving, and hence wage rates?\\n7. What is the effect of charitable or extra items of income\\non wage rates? Why is this?\\n8. Give illustrations of the effect of tips, fees, pauper allowances,\\netc., on wages.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0103.jp2"}, "104": {"fulltext": "CHAPTER XIII.\\nwages Continued.\\n57. Piece=Work. Piece-work is a system under\\nwhich laborers are paid according to the quantity of\\nwork done instead of according to the time worked. It\\nhas gradually come into vogue with the capitalist system\\nof production. There are many reasons which have con-\\ntributed to its adoption in certain industries, especially\\nfactories and machine shops. It is believed by many that\\nunder piece-work the laborers reward is more equitable.\\nIt is assumed with great confidence that under piece-\\nwork every laborer gets what he earns. If he works\\nharder and does twice as much or a third more under\\nthis system he is supposed to get twice as much or a third\\nmore pay.\\nAlthough this view is honestly held, it is far from being\\nentirely true. It would at first sight seem as if, for in-\\nstance, when shoemakers are paid by the quantity of\\nwork done, it would make no difference to the employer\\nhow many pairs a man made. If he doubled his output\\nby any ingenious contrivance or special energy or skill,\\nhis wages would presumably increase by the full amount\\nof the increase of his product. But that is contrary to the\\nhistory of piece-work wages. The theory would be true\\nif the wages w r ere really paid in proportion to the work\\ndone, but they are not. The real force that finally oper-\\nates to detemine wages, as explained in the last chapter,\\nis the cost or standard of living among the wage class.\\n94", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0104.jp2"}, "105": {"fulltext": "WAGES 95\\nOf course, there are individual exceptions to this, just as\\nthere are to the cost basis of all prices, and just as there\\nare variations and disturbances in the operation of every\\nnatural law, but the great steady influence underlying\\nprices is cost of production, and underlying wages, cost\\nof living. A very little observation of the facts in any\\nindustry where there is any considerable change in the\\nmethods of production will show that piece-work wages\\nare really governed by the same principle as regular time\\nwages.\\n58. How Piece=Work Wages Are Determined. The\\ntruth is, as every workingman knows, the piece-work\\nprice in any shop or factory is finally fixed by the average\\nearnings of the time or day workers in the same business.\\nIn other words, the price per unit of product, whether by\\nthe ton, dozen or yard, is fixed with the view of making\\nthe total earnings of the day of week as nearly equal to\\nthe time earnings as possible. The differences in the\\nenergy and skill of the workers cause the actual earnings\\nto fluctuate around this line. As an illustration, take the\\ncase of any workshop where a new machine is intro-\\nduced. Whether it is in printing, shoemaking, iron-work\\nor whatever, it is an absolute rule that when a new ma-\\nchine that produces a great deal more than the old is\\nbrought in the price paid to the laborer per unit of pro-\\nduct is reduced. For instance, with the latest improved\\nlooms that are now being introduced in the southern cot-\\nton mills the weaver can operate double the number and\\nhence produce double the quantity of cloth, and the price\\npaid for weaving fifty yards is only a little more than\\nhalf what it is on the old looms.\\nThis is not necessarily unjust. There is no just reason\\nwhy all the benefits of a new machine should go to the\\nlaborer who happens to work at it. He did nothing to", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0105.jp2"}, "106": {"fulltext": "g6 OUTLINES OF SOCIAL ECONOMICS\\ninvent it. He took none of the risk and expense of ex-\\nperimenting with it, nor of the larger investment of capi-\\ntal necessary to instal it. If the price paid the laborer\\nper unit of product remained the same the public at large\\nwould never get any benefit from the improvements.\\nPrices could not fall, capital could get nothing for its\\nrisks and losses, and the few workmen who did receive\\nthe gain would probably be demoralized by the sudden\\nextraordinary increase of income. But the universal\\nprinciple which tends to make piece-workers wages like\\nthose of day-workers, according to the standard of living,\\ndistributes the benefit of improvements throughout the.\\nwhole community. It goes partly to the consumers in the\\nlower prices of products, partly to the capitalists, tem-\\nporarily, in larger profits, and partly to the laborers who\\noperate the machines, in some increase of total earnings\\neven at the reduced piece-rate.\\nThis fact, that piece-work wages tend to equal the day\\nearnings, in the long run, prevents the piece-work system\\nfrom always inspiring the laborers to the highest energy\\nand competition that employers expect. By long experi-\\nence laborers have learned that if a few in a shop work\\nunusually hard and produce an unusually large amount,\\nthat fact will often be made the basis of reducing the rate\\nof pay in the shop. It will be seen that these few earn\\nmore! than t)he formal standard, and from this it will be\\nassumed that the rest could do the same if they tried, and\\nso the piece-work prices will be lowered. That is the\\nreal reason why trade unions have so often made it a\\nrule, which is so much criticized and censured, to limit\\nthe amount of work the members shall do in a day. This\\ntendency has arisen among the trade unions because em-\\nployers so frequently base the piece-rate for a whole shop\\non the earnings of a certain number of the hardest", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0106.jp2"}, "107": {"fulltext": "WAGES 97\\nworkers, sometimes not scrupling to give these few an\\nextra bonus to turn out a large product. This means\\nthat the rate of labor for all must be at the very highest\\nnotch in order to earn even average day wages. The\\ntrade unions are familiar with this, and so they try to\\ncheck it by fixing a limit to the piece-work product per\\nday. They realize that otherwise they would be pitted\\nagainst each other like racehorses, and so in the long run\\nbe forced to very exhaustive labor with no more pay.\\n59. Women s Wages. Piece-work has many excel-\\nlent features, but it is not necessarily a means of earn-\\ning higher wages that is determined in the long run by\\nother conditions, as we have seen. One of the advan-\\ntages of piece-work is that it destroys the discrimination\\nagainst women in the rate of wages. Under piece-work,\\nemployers are practically obliged to pay women the same\\nrate of wages as men. Wherever piece-work prevails,\\nmen and women who work at the same employment get\\npractically the same wages at least, the same piece-rate.\\nIt is a common thing, among weavers in cotton, silk and\\nwoolen mills, for some women to earn more than some\\nmen, although that is not the rule.\\nBut, curiously enough, piece-work operates in another\\nway to separate employments into men s work and\\nwomen s work. That is to say, where the work is of a\\nkind that women can do equally as well as men, men are\\ngradually dropped out altogether and it becomes a\\nwoman s job, so much so that women even get to dis-\\nlike seeing a man doing it, and vice versa. The reason is\\nthe same that operates in leveling piece-work rates to the\\nday-work wages namely, the effort to base the total\\nearnings on the cost or standard of living of the workers.\\nWith women this is less than with men, and hence a\\nlower piece-rate can be paid on what is exclusively", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0107.jp2"}, "108": {"fulltext": "98 OUTLINES OF SOCIAL ECONOMICS\\nwoman s work, just as the day rate for women is nearly\\nalways lower than for men.\\nThat women s cost of living, all included, is less than\\nmen s, is so thoroughly recognized that in many places\\n(in factory towns it is a rule) the price of board for\\nwomen is lower than that for men. Moreover, women de-\\npend largely on other people for a portion of their ex-\\npenses. They depend on their parents or brothers or\\nyoung men friends for most of their social enjoyments,\\nentertainments, presents, etc., and these are sufficiently\\nimportant and continuous items to make a marked differ-\\nence in their general regular expenses. Then, too,\\nwomen are very much less often responsible for family\\nsupport than men. Except in the case of widows, women\\nrarely have to supply the income of a whole family. Sta-\\ntistics show that working women represent only about\\none and one-half dependent persons to each worker,\\nwhereas each workingman represents an average of\\nmore than three dependent persons. Since the cost of\\nliving includes not merely the personal expenses of the\\nindividual, but also of those dependent on him, as indi-\\ncated by the family, the average man s expense is much\\ngreater than the woman s.\\n60. Family Expenses the Basis of Wages. Work-\\ning women are usually single, and are generally members\\nof families. Being thus partly supported by the family\\nincome, their earnings can be and are much less than\\nwhat would be required for full support.\\nLikewise, the head of the house in turn usually earns\\nless when the family income is pieced out by the small\\nwages of the women and children. In other words, the\\nforces governing wages steadily work toward the point\\nof basing the total income on the family cost or standard\\nof living.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0108.jp2"}, "109": {"fulltext": "WAGES 99\\nThe income of the family must be not merely enough\\nto support the worker, but also the dependent non-\\nworkers. The general rule is that when only the man\\nworks his wages are based on this average family ex-\\npense, but when the wife and children also work each\\nearns less, so that the total income rarely exceeds the nor-\\nmal standard of living of families in the same social\\ngroup.\\n61. Country and City Wages. The difference be-\\ntween country and city wages for the same class of\\nworkers is determined in the same way. The standard\\nof living in the country requires much less expense than\\nin the city, and therefore wages are lower in the rural\\ndistricts and higher in the cities. Part of this cheaper\\ncost is due to lower rents and cheaper provisions, but\\nvery largely it is because in the country a smaller and\\npoorer variety of commodities are consumed than in the\\ncity. Less is usually spent on good clothing, on newspa-\\npers and magazines, on travel and amusements, on pic-\\ntures and music and furniture and various sundries, be-\\ncause the social life and contact between people is less.\\nPeople demand these extra comforts, conveniences and\\nartistic products largely in proportion as they see them\\nin customary use by acquaintances, neighbors and\\nfriends, and naturally there is less of this sort of incen-\\ntive in the country than in the city. Both the cost and\\nthe standard of living are lower, and therefore wages\\nare lower.\\n62. Wages Fixed by Groups, Not Individuals. Wage\\nrates are determined by the standard of living of groups\\nof families, not of each separate household. Wages are\\ndifferent for different kinds of employment according to\\nthe standards of living of the groups of workers that\\nseek these various occupations, and the pay is uniform\\nLofC,", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0109.jp2"}, "110": {"fulltext": "IOO OUTLINES OF SOCIAL ECONOMICS\\nfor the same work. For instance, the price for weaving\\ncloth is a fixed amount for all weavers, the price for peg-\\nging shoes in shoe factories is uniform, and so for all\\nforms of labor, whether skilled or unskilled. The wage\\nrate for carpentering or plumbing or bricklaying is a\\nstandard price for that work for the whole of each group\\nor trade in each locality.\\nBut of course the standards of living of different fam-\\nilies within each of these groups are not all the same.\\nHow, then, is the standard for the group, on which\\nwages are based, determined? In the same way as the\\nprices of commodities are determined, by the cost of\\nthe dearest portion.* In the case of prices, it is the cost of\\nproducing the dearest portion of the required supply; in\\nthe case of wages, it is the cost or standard of living of\\nthe most expensive portion of each group of laborers that\\ndetermines the wages for the group. This dearest por-\\ntion is composed of the families in that group who, either\\nthrough higher tastes or more expensive habits or larger\\nfamilies, have the most costly standard of living in the\\ngroup.\\nSuppose, for instance, a group of workingmen consists\\nof a thousand men, and two hundred of them represent\\nfamilies whose habitual customary expenses are $15 a\\nweek. The pressure from those two hundred would be\\nto force a wage rate of at least $15 a week, and perhaps\\nstart a strike if wages fell below that point. The effect of\\nthe requirements and perhaps efforts of these two hun-\\ndred most expensive families is to keep the wage stand-\\nard up to $15. But of course the cost of living of all\\nof the laborers in this group is not $15 a week. There\\nwill be a number of single men and married couples\\nSee Chapter X.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0110.jp2"}, "111": {"fulltext": "WAGES IOI\\nwithout children, whose cost of living will be less\\nthan that of the two hundred most expensive, but they\\nwill get the same wages as the two hundred, because\\nwages are uniform for the group just as prices tend to\\nuniformity in the same market. Therefore, some of these\\nsingle men and couples without families will be able to\\nsave something, have a small bank account or buy a home\\nperhaps. Like the low-cost manufacturers, they get the\\nsame price as their dearest competitors for what they\\nhave to sell, and have the difference as a margin of profit.\\nThat is why foreigners who come to this country gen-\\nerally save money, while Americans, as a rule, do not.\\nThey come right into groups of laborers whose wages are\\nfixed by the American standard of living, which is much\\nhigher than their own. Therefore they get American\\nwages, and, still living according to European standards,\\nsave up a part of their wages and frequently send money\\nhome.\\nThis group method of fixing wages also applies to\\nother conditions of labor, the sanitary conditions of\\nworkshops, employment of children, hours of labor, etc.\\nThese are determined, under modern industry, not for\\nthe individual but for the group, and this has made it\\nnecessary for laborers to act, not as individuals but in\\ngroups. This is the chief reason why trade unions have\\ncome into existence; and, with all their mistakes, they\\nare an inevitable part of the capitalist and wages system\\nof production.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapter III. of\\nPart III., on The Law of Wages.\\nAdditional References. In Gunton s Wealth and\\nProgress, Chapters VII., VIII. and IX. of Part II.,", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0111.jp2"}, "112": {"fulltext": "102 OUTLINES OF SOCIAL ECONOMICS\\ntreating respectively of the Universality of the Law of\\nWages/ Wages Under Piece-Work/ and Ultimate\\nAnalysis of the Law of Wages.\\nIn Adam Smith s Wealth of Nations, Article III.\\nof Chapter II., Book V., and in David Ricardo s Political\\nEconomy and Taxation, Chapter XVI. Both these chap-\\nters discuss the influence of taxes upon wages, showing\\nthe effect of cost of living in fixing wage rates. They\\nwill be interesting to students desiring to make a more\\nextensive study of the subject.\\nEXTRACTS FROM READINGS.\\nTaxes on Wages. The wages of the inferior classes\\nof workmen, I have endeavored to show in the first book,\\nare everywhere necessarily regulated by two different\\ncircumstances: the demand for labor, and the ordinary\\nor average price of provisions. The demand for labor,\\naccording as it happens to be either increasing, station-\\nary, or declining, or to require an increasing, stationary,\\nor declining population, regulates the subsistence of the\\nlaborer, and determines in what degree it shall either\\nbe liberal, moderate, or scanty. The ordinary or average\\nprice of provisions determines the quantity of money\\nwhich must be paid to the workman in order to enable\\nhim, one year with another, to purchase this liberal, mod-\\nerate or scanty subsistence. While the demand for labor\\nand the price of provisions remain the same, a direct tax\\nupon the wages of labor can have no other effect than to\\nraise them somewhat higher than the tax. A\\ndirect tax upon the wages of labor, though the laborer\\nmight perhaps pay it out of his hand, could not properly\\nbe said to be even advanced by him; at least if the de-\\nmand for labor and the average price of provisions re-\\nmained the same after the tax as before it. In all such", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0112.jp2"}, "113": {"fulltext": "WAGES IO3\\ncases, not only the tax, but something more than the tax,\\nwould in reality be advanced by the person who imme-\\ndiately employed him. From Adam Smith s Wealth\\nof Nations, Article III. of Chapter II., Book V.\\nThe Employer Would Pay a Tax on Wages. If taxes\\npress unequally on the farmer, he will be enabled to raise\\nthe price of raw produce, to place himself on a level with\\nthose who carry on other trades but a tax on wages,\\nwhich would not affect him more than it would affect\\nany other trade, could not be removed or compensated by\\na high price of raw produce; for the same reason which\\nshould induce him to raise the price of corn, namely, to\\nremunerate himself for the tax, would induce the clothier\\nto raise the price of cloth, the shoemaker, hatter and up-\\nholsterer, to raise the price of shoes, hats and furniture.\\nIf they could all raise the price of their goods, so as to\\nremunerate themselves, with a profit, for the tax as they\\nare all consumers of each other s commodities, it is ob-\\nvious that the tax could never be paid for who would be\\nthe contributors if all were compensated? I hope, then,\\nthat I have succeeded in showing, that any tax which\\nshall have the effect of raising wages, will be paid by a\\ndiminution of profits, and, therefore, that a tax on wages\\nis in fact a tax on profits. From Ricardo s Political\\nEconomy and Taxation, Chapter XVI.\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. What is the piece-work system?\\n2. How is it supposed to affect the laborer s earnings? Is this\\nsupposition correct?\\n3. How are piece-work rates really determined? Illustrate this\\nin the case of new machinery introduced in a factory.\\n4. Is there any injustice in this method of fixing piece-rates?\\n5. To what classes and in what ways are the gains from new\\nmachinery really distributed?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0113.jp2"}, "114": {"fulltext": "104 OUTLINES OF SOCIAL ECONOMICS\\n6. What have laborers found to be the custom of employers\\nwhen some of the workers earn unusually large amounts?\\nWhat rule have the trade unions adopted to prevent this?\\n7. Is this rule of the unions justified by the facts in the case?\\n8. What good effect has piece-work on the relation between\\nmen s and women s wages?\\n9. How is this result sometimes avoided?\\n10. Why are women s wages lower than men s? Mention several\\nreasons.\\n11. Explain why the family is the real basis of wage rates, rather\\nthan the individual worker. Give illustrations showing\\nthat this is really the case.\\n12. Why are country wages lower than city wages? Give some\\nreasons why both the cost of living and standard of living\\nare lower in the country.\\n13. Explain why wages are fixed according to groups instead of\\nfor each separate laborer.\\n14. What portion of each group of laborers determines the rate\\nfor the group? Why is this?\\n15. How is it that foreigners coming to this country are able\\nto save money when American laborers generally cannot?\\n16. What has brought trade unions into existence? Are they\\na necessary part of modern industry?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0114.jp2"}, "115": {"fulltext": "CHAPTER XIV.\\nRENT.\\n63. Nominal and Kconomic Rent, Rent is the gen-\\neral name of the income from the use of land. Nominal\\nrent is the total amount paid to the landlord for the use\\nof his land. Economic rent is what the landlord has left\\nafter paying his agreed share of the expenses of keeping\\nup the property, such as taxes, road assessments, clearing\\noff, water rights, etc. When there are improve-\\nments, such as buildings, wells, fences, etc., situated on\\nthe land, they are nearly always considered to belong to\\nthe land, and so the rent includes payment for both land\\nand buildings. In reality, that portion of the rent paid\\nfor use of the buildings or other improvements is not\\nproperly rent; it is interest on the capital invested in\\nthese improvements. Because of the difficulty of sep-\\narating the two, however, it is usual to call the whole\\npayment for use of land and improvements by the name\\nof rent. We should remember that only the payment for\\nuse of land is really rent, and only the landlord s final\\nprofit is economic rent.\\n64. How Rent Is Determined. There is a sense in\\nwhich land is very much like capital. It is one of the fac-\\ntors in production, not only as the source of raw ma-\\nterials, but as an instrument actively used in production,\\nlike capital except of course that land cannot be moved\\naround like machinery. Land is used for various pur-\\nposes agriculture, manufacture, and for residences. Its", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0115.jp2"}, "116": {"fulltext": "106 OUTLINES OF SOCIAL ECONOMICS\\nrent is the surplus arising from its use, and the rent of\\ndifferent portions of land is determined by their different\\ndegrees of usefulness for the purposes for which they are\\noffered.\\nFor example, if the land is desired for purposes of re-\\ntail trade, it has much more usefulness on a prominent\\nstreet than in a back alley or country road. If it is\\nwanted for raising garden stuff it is much more useful if\\nthe soil is fertile than if it is a rocky, sandy hillside. If\\nit is desired as a site for a factory, it is much more useful\\nif located near a railway leading both to raw materials\\nand to good markets than if located away off in the\\nwoods.\\nSuppose one piece of land will produce ten bushels of\\nwheat, another twelve, another fourteen and another six-\\nteen bushels, with the same outlay of labor and other\\nexpenses. If the wheat from all three pieces is sold in\\nthe same market, the price per bushel will be the same\\nwhichever land it comes from. The consumer does not\\ncare whether the wheat is raised on poor land or good\\nland. He wants the wheat, and it is the same to him\\nwhether it was raised on a hillside in New England or\\non the fertile fields of Minnesota.\\nThe wheat will be sold at practically the same price,\\nand that price will have to be high enough to cover the\\nexpense of raising it on the poorest of these competing\\npieces of land. This, in our illustration, would be the\\nten-bushel tract. If the owner of the ten-bushel tract of\\nland cannot pay expenses in raising wheat at less than\\nseventy cents a bushel, seventy cents a bushel will have\\nto be the price, so long as his crop is required in the mar-\\nket. The tracts which yield twelve, fourteen and sixteen\\nbushels will get the same price per bushel, and they will\\nhave two, four and six bushels an acre, respectively, as", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0116.jp2"}, "117": {"fulltext": "RENT IO7\\nprofit. This will be due to the different degrees of fer-\\ntility of these different pieces of land. The profit will\\ncome to the better tracts because the price of the wheat\\nis fixed by the cost of farming on the poorest land used.\\nThe owner of the land requires the farmer to divide\\nthat surplus with him, in payment for the privilege of\\nusing the land. What the landlord thus receives is the\\nnominal rent of the land. He may be able to exact all\\nthe surplus, or only a small part of it, depending on cir-\\ncumstances. If he asks the man on the ten-bushel tract\\nto pay him a bushel an acre for the use of his land, the\\nman will be unable to do so, because he would lose. The\\nprice of the wheat only just covers his cost of produc-\\ning it. He will give up the land rather than pay this rent,\\nand if the owner then takes it and uses it himself he finds\\nhe can get nothing but what it costs him, because the\\nprice of the crop only equals the cost. Therefore, the\\nowner of that land can demand no rent for it because it\\nwill yield no surplus above the cost.\\nBut the cultivators of the other tracts, who make two,\\nfour or six bushels an acre, according to the fertility of\\nthe land, will divide their surplus with the land-owner\\nrather than not use the land. The farmer sees that he\\ncould get some ten-bushel land without paying any rent,\\nbut he also knows that he would not make anything by\\nit. If he pays the landlord a bushel per acre for the\\ntwelve-bushel tract he will still have a bushel left, and be\\na bushel an acre better off than if he went on to the land\\nhe could get for nothing. Even if he paid a rent of two\\nbushels he would be at least as well off.\\nThis one bushel or two bushels paid to the landlord\\ndoes not add to the price of the wheat. That is fixed by\\nthe cost on the ten-bushel land. The rent is simply a\\nportion of the profit due to the greater productiveness of", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0117.jp2"}, "118": {"fulltext": "108 OUTLINES OF SOCIAL ECONOMICS\\nthe twelve, fourteen and sixteen-bushel tracts. The re-\\nmaining part of the surplus produced, if it is not all paid\\nin rent, goes to the farmer or user of the land and is his\\nprofit. If he has to pay it all in rent, then he simply gets\\nhis living from the land and has no profit.\\n65. Rent Not a Tax on Consumers or Laborers.\\nRent, therefore, is not added to the price of products but\\nis taken from the profits of the user of the land. In other\\nwords, it is a division of the profits between the user of\\nthe land and the owner. Neither does rent come out of\\nthe laborers wages, because wages have to be paid before\\nrent arises at all. Whatever the crop, or the profit or\\nloss, even though it finally means bankruptcy, the labor\\nemployed in cultivating the land has to be paid. Wages\\nare a part of the original and necessary first cost of culti-\\nvating the land and raising the crop. If the farmer hires\\nno labor but does all the work himself, the same is true.\\nHis own labor has to be paid for in his cost of living,\\nwhich amounts to the same thing as paying wages. In\\neither case, this labor cost must be paid first farmer or\\nlaborer must at least be supported before they can work\\non the land, whatever happens afterwards. Wages are\\nalways a part of the first cost of production and never a\\npart of the profit. Indeed, the price of the produce of the\\nland is largely determined by the wages or labor cost,\\nincluding the farmer s services, because in farming espe-\\ncially these are the largest items in the cost of produc-\\ntion and can never be avoided\\nWages are substantially the same on the ten-bushel\\ntract as they are on the twelve, fourteen or sixteen-bushel\\ntracts. The farmer cannot get his labor any cheaper be-\\ncause of the fact that he only raises ten bushels instead\\nof twelve or more and it is because he is forced to pay\\nthe wages and support himself that the price of the wheat", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0118.jp2"}, "119": {"fulltext": "RENT IO9\\nmust equal the cost on the poorest tract. If he has to\\ndrain the land the price must cover that cost, which is\\nlargely wages. If he has to cultivate much the price\\nmust cover that, which also is largely wages. If he has\\nto make improved roads to give access to the farm, that\\nis another cost which is largely wages. So, in any case,\\nthe cost of production, not only on the best but on the\\npoorest land, is largely made up of wages.\\nBut rent is not a part of the cost of production, be-\\ncause the ten-bushel tract, by which the price of wheat is\\nfixed, pays no rent at all. It pays wages and the farmer s\\nliving and costs of different kinds, but it pays no rent, be-\\ncause it produces only enough to cover these costs. The\\nother three tracts each pay rent, because the cost of pro-\\nduction on them is less per bushel, while the price per\\nbushel is fixed by the cost on the poorest tract. Rent is\\nsimply a part of the surplus which arises after wages are\\npaid and after the price is determined.\\nRent, therefore, does not enter into prices and hence\\ndoes not increase prices. It does not arise until after\\nwages are paid, and therefore is not taken out of wages.\\nOne might as well say that the amount of water in a well\\nto-day depends upon the amount that will be taken from\\nthe well to-morrow.\\nTherefore, the claim made by advocates of the single\\ntax on land, equal, to the whole rent, that the laborer\\nreceives only what the landlord leaves is entirely a mis-\\ntake. On the contrary, the landlord receives what the\\nlaborer leaves. The great interest of the laborers, there-\\nfore, is not in abolishing rent, but in seeing that they\\nget a large amount in the first place, in wages. They\\nhave the first bite of the apple. Whether they will work\\nfor ten cents a day or will not work for less than two dol-\\nlars is a question of how much their standard of life im-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0119.jp2"}, "120": {"fulltext": "110 OUTLINES OF SOCIAL ECONOMICS\\npels them to insist upon, but in any event the landlord\\ncan have nothing until the laborers are paid. Every ef-\\nfort to improve the condition of the laborers by abolish-\\ning rent must be as futile as trying to run a mill by the\\nwater that has passed down stream. Wages must be im-\\nproved by improving the conditions that affect the\\nlaborer s home and social life and opportunities. It is by\\nimprovement of the conditions of the laborer s life, his\\neducation, his home, his social opportunities, everything\\nthat makes for the betterment of his personal, social and\\nmoral character, that wages can be raised, but never by\\nattempting to regulate or abolish rent. To recognize this\\nis a great step towards wise treatment of the wages\\nquestion.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapter IV. of\\nPart III., on Rent, Its Economic Law and Cause.\\nAdditional References. In Marshall s Economics of\\nIndustry, Chapters IX. and X. of Book VI., on the\\ntheory of rent and history of various systems of land\\nownership.\\nIn Hadley s Economics, Sections 142 to 146 inclu-\\nsive, in Chapter V., discussing systems of ownership and\\nrental of land; also sections 321 to 330 inclusive, in Chap-\\nter IX., on economic rent, landlord s expenses and losses,\\nland speculation, etc.\\nIn Ricardo s Political Economy and Taxation, Chap-\\nters II. and X. In these chapters will be found the best\\npart of Ricardo s famous theory of rent, which is still the\\naccepted teaching by economists of nearly every school.\\nIt is this same theory, expanded to cover interest and\\nprofits, which leads us to the cost of production theory\\nof value.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0120.jp2"}, "121": {"fulltext": "RENT 1 1 I\\nEXTRACT FROM READINGS.\\nRent Does Not Affect Prices. The reason then, why\\nraw produce rises in comparative value, is because more\\nlabor is employed in the production of the last portion\\nobtained, and not because a rent is paid to the landlord.\\nThe value of corn is regulated by the quantity of labor\\nbestowed on its production on that quality of land, or\\nwith that portion of capital, which pays no rent. Corn\\nis not high because a rent is paid, but a rent is paid be-\\ncause corn is high; and it has been justly observed that\\nno reduction would take place in the price of corn, al-\\nthough landlords should forego the whole of their rent.\\nSuch a measure would only enable some farmers to live\\nlike gentlemen, but would not diminish the quantity of\\nlabor necessary to raise raw produce on the least produc-\\ntive land in cultivation. From Ricardo s Principles of\\nPolitical Economy and Taxation, Chapter II.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. What is the difference between nominal and economic rent?\\n2. Is rent paid for buildings and other improvements on land\\nproperly called rent? If not, what is it, and why does it\\ngo under a wrong name?\\n3. In what way is land like capital, and how does it differ from\\ncapital?\\n4. Does all land yield rent? If not, what portion is it that\\npays none?\\n5. Explain by an illustration just how rent arises on different\\nkinds of farm land.\\n6. Does the land-owner get all the surplus from the use of his\\nland, or is it usually divided with the tenant?\\n7. Is rent added to the price of the products of land? Give rea-\\nsons.\\n8. Does rent come out of the laborer s wages? Which has to be\\npaid first, labor cost or rent?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0121.jp2"}, "122": {"fulltext": "CHAPTER XV.\\nINTEREST.\\n66. Interest Similar to Rent. Rent is a sum paid for\\nthe use of an instrument and source of production land\\ninterest is a sum paid for another instrument capital.\\nThe difference is merely in the method of payment; rent\\nbeing a gross sum paid directly for the use of land, while\\ninterest is a percentage paid for the use of money with\\nwhich machinery or other forms of capital may be\\npurchased.\\nThis difference in the method of payment makes the\\nsimilarity between rent and interest a little unclear, at\\nfirst sight, but it is really very simple. If, for instance,\\nwhen we speak of interest we should name the whole\\nsum paid in a year s time for the use of money, instead\\nof naming an annual rate per dollar, it would be clearly\\njust like rent; and if we should, in speaking of rent, name\\nan annual rate per dollar on the value of a given piece of\\nland, the similarity to interest would be equally apparent.\\nTo illustrate If a farm is worth $10,000 and the rent is\\n$500 per year, we might just as correctly say that the rent\\nis 5 per cent, on $10,000 worth of property; or, if a fac-\\ntory is worth $10,000 and the interest on the money with\\nwhich it was built is 5 per cent., we might say that the\\ninterest is $500 per year. The result is the same in either\\ncase. The difference in the way of expressing it comes\\nfrom the custom of reckoning rent as a lump sum paid for\\nuse of a given piece of land as a whole, not as a percent-\\n112", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0122.jp2"}, "123": {"fulltext": "INTEREST 1 1 3\\nage paid on each dollar represented in the value of that\\nland while interest is reckoned as so much paid per dol-\\nlar for use of money, rather than as a lump sum for use\\nof the capital represented by that money. It is simply a\\nreverse custom of reckoning, based on convenience.\\nMoney being the universal measure of value, it is easy to\\nexpress interest as a percentage per dollar, whatever the\\nnumber of dollars borrowed; while land being separate\\nand unequal pieces of property of countless different\\nvalues, rent could not be expressed as a percentage with-\\nout always mentioning also the value of the particular\\npiece of land, hence it is a more direct way simply to\\nname the gross sum paid per annum.\\n67. How Interest Arises. Interest is paid for the use\\nof capital because the borrower expects that by its aid\\nhe can produce a surplus, not only larger than he could\\nproduce without the capital, but larger than the interest\\ndemanded for it, thus having a profit left for himself.\\nHow much interest he will be willing to pay depends on\\nhow large a surplus he expects the use of the capital will\\ngive him. The lender, perhaps, wants 5 per cent, for his\\nmoney. The borrower is not sure that he can make that\\nmuch surplus with it; he believes he can only realize\\nabout 4 per cent, extra by borrowing this money, and\\ntherefore declines to borrow at 5 per cent. Why? Be-\\ncause the surplus he expects to be created by the new\\ncapital is not equal to what the owner of the capital\\nwants for its use.\\nThat is exactly like rent. A farmer will not pay in\\nrent more than, nor quite as much as, the expected extra\\nproductiveness of the land offered, over and above that\\nof land he can get at less or no rent. A manufacturer\\nwill only pay in interest something less than the increased\\nsurplus that the borrowed capital is expected to produce.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0123.jp2"}, "124": {"fulltext": "114 OUTLINES OF SOCIAL ECONOMICS\\nOtherwise he would lose by using it, and he only borrows\\nit in the hope of gaining a profit for himself over and\\nabove the interest. Interest is a division of the profitable\\nuse of capital between the borrower and the lender.\\n68. How Interest Rates Are Determined. When\\nmoney is loaned it is of course impossible to foretell ex-\\nactly whether it will earn more or less than a given\\namount; nevertheless, interest has to be agreed upon in\\nadvance, and therefore must be based on some general\\naverage expectation of surplus from use of capital. In\\npractical experience, some establishments find them-\\nselves unable to earn the expected surplus at all, while\\nothers earn very much more than the ordinary. Normal\\ninterest rates are the result of an unconscious effort to\\nstrike a rough average of the varying earnings of capital\\nin different lines of industry, and under ordinary circum-\\nstances. The rates frequently vary from this normal\\nstandard according to any unusual riskiness or unusual\\nsecurity, ease or difficulty of borrowing the money, and\\nother special circumstances. If, for instance, in a given\\ncountry or section the bulk of the capital invested in ordi-\\nnary lines of business earns all the way from 3 to 8 per\\ncent, (some of course earning nothing and some perhaps\\n10, 15 or 20 per cent.), the normal interest will probably\\nbe a little over 5 per cent. If in another country or\\nlocality the bulk of capital in ordinary business earns\\nfrom 4 to 10 per cent., interest will tend more nearly to-\\nwards 6 or 7 per cent. This higher rate will be aided by\\nthe fact that where earnings of capital are unusually high,\\nthe element of riskiness is generally larger than else-\\nwhere. Because of the greater chance of losing all, the\\nlender demands more interest, while the borrower, count-\\ning on his extra good chance of earning a large surplus,\\nis willing to pay more to get the use of the lender s capi-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0124.jp2"}, "125": {"fulltext": "INTEREST 115\\ntal. In this way, interest is higher as a rule in the United\\nStates than in England, and much higher in the Klondike\\nthan in New York and Pennsylvania.\\nThe same is true of the risks and expected profits of\\ndifferent kinds of industries in the same community.\\nFor instance, a factory for making gunpowder or dyna-\\nmite runs great risk of being blown up, and so has a\\nmuch larger percentage of probable loss than a hardware\\nfactory or a grocery store. The average wastes and\\nlosses of a business have to be covered in the price of the\\nproduct, and hence are just the same to the manufacturer\\nor farmer as cost of production. In a business where the\\nlosses from accidents, etc., are likely to be very large, the\\nprices are proportionately higher than in safer industries,\\nand therefore the profits of those who escape the losses\\nare also unusually high. Relying on the hope of these\\nhigh profits and no losses, the manufacturer agrees to\\npay a high rate of interest, which the lender naturally\\ndemands because of the greater danger of losing his\\nprincipal. In proportion as the risk is great the lender\\nwill demand a high rate of interest, and in proportion as\\nthe investment is safe for a long term he will accept a low\\nrate of interest. For instance, the lowest rate of in-\\nterest is paid for English consols and United States\\nbonds. Why? Because they are believed to be absolutely\\nsecure. The credit of the English and United States\\ngovernments is regarded as entirely beyond suspicion.\\nThere is no care and no risk in holding the bonds of\\nthese two governments. Interest on the bonds of old and\\nprofitable railroad systems is also generally lower than\\nthe average, for the same kind of reason.\\n69. Interest Does Not Affect Prices or Wages.\\nLike rent, interest is simply one part of profits, not a part\\nof cost of production. It differs from wages because of", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0125.jp2"}, "126": {"fulltext": "Il6 OUTLINES OF SOCIAL ECONOMICS\\nthis fact. Wages are a part of cost and always have to\\nbe paid, but there is capital in use which yields no profit.\\nMany a business man can tell of having used capital\\nwithout being able to earn the interest on it. That capi-\\ntal barely saves itself from being swallowed up in losses.\\nThere is no-interest capital and no-rent land, but there is\\nno such thing as no- wage labor. That is to say, there is\\nland used without paying rent, there is capital used with-\\nout paying interest, but there is no labor used without\\nbeing paid wages in some form or other.\\nInterest, like rent again, has practically no effect upon\\nprices, because prices in any industry are determined by\\nthe cost of furnishing the dearest portion of the product,\\nand that is the portion which is unable to pay rent or in-\\nterest. It is the portion that is on the verge of loss, merely\\nstruggling to keep in the race. Interest, except in un-\\nusual instances and to an insignificant degree, is not an\\naddition to prices, but is a division of profits. If all pro-\\nducers had capital enough to conduct their business with-\\nout borrowing there would be no interest paid, but prices\\nwould not be lower. The only difference would be that\\nthe producers profits would be larger.\\nRent and interest are simply two portions of the sur-\\nplus earnings of industry, paid for the use of instruments\\nemployed in the industry and owned by other people.\\nWhoever uses other people s land and capital has to di-\\nvide with them the resulting profits in interest and rent.\\nThe common assumption that all rent and interest are an\\naddition to the prices of the commodities consumed by\\nthe people is one of the greatest errors in economics. The\\nusers of the capital and land pay the interest and rent,\\nnot by adding it to the price of the products, but out of\\nthe profits of the industry.\\nIn business honestly conducted, interest, like rent, is", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0126.jp2"}, "127": {"fulltext": "INTEREST 117\\nnot robbery but is an economic division of the profits\\ncreated by an instrument that produces wealth cheaper\\nthan the dearest or most expensive competitors. In other\\nwords, it is a division of an extra amount extracted from\\nnature, and not a tax upon the consumers.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapter V. of\\nPart III., on The Law of Interest.\\nAdditional References. In Hadley s Economics,\\nSections 151 to 159 inclusive, in Chapter V., discussing\\ninterest as a system and showing how the custom of in-\\nterest-paying arises.\\nIn Mill s Principles of Political Economy, Section 5\\nof Chapter XXIIL, Book III. This section brings out an\\nimportant point connected with the subject of interest,\\nnamely, the fact that the rates of income from invest-\\nments is what determines the value of those investments.\\nIn Adam Smith s Wealth of Nations, Chapter IX.\\nof Book I., on The Profits of Stock, under which\\nheading Dr. Smith also discussed interest, showing it to\\nbe a portion of the profits of industry also, Chapter IV.\\nof Book II., treating Of Stock Lent at Interest. Be-\\ncause of Dr. Smith s habit of close practical observation,\\nwhat he has to say on these topics is frequently more\\ncorrect and significant than the theories of many later\\neconomists.\\nEXTRACT FROM READINGS.\\nInterest and Pro-fits. But though it may be impossi-\\nble to determine with any degree of precision, what are\\nor were the average profits of stock, either in the pres-\\nent, or in ancient times, some notion may be formed of\\nthem from the interest of money. It may be laid down as", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0127.jp2"}, "128": {"fulltext": "Il8 OUTLINES OF^SOCIAL ECONOMICS\\na maxim, that wherever a great deal can be made by the\\nuse of money, a great deal will commonly be given for\\nthe use of it and that wherever little can be made by it,\\nless will commonly be given for it. Accordingly, there-\\nfore, as the usual market rate of interest varies in any\\ncountry, we may be assured that the ordinary profits of\\nstock must vary with it, must sink as it sinks and rise as\\nit rises. The progress of interest, therefore, may lead us\\nto form some notion of the progress of profit. From\\nAdam Smith s Wealth of Nations, Chapter IX. of\\nBook I.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. How is interest similar to rent?\\n2. What is the difference in the methods by which interest and\\nrent are paid? What is the reason for this difference?\\n3. Why is interest paid? Under what circumstances will a\\nbusiness man decline to borrow? Illustrate.\\n4. How is a normal interest rate determined?\\n5. Under what circumstances are interest rates likely to be\\nhigher in some countries or localities than in others?\\n6. What effect has risk of loss in establishing different interest\\nrates for different kinds of industries? Give illustrations.\\n7. What are some of the forms of investment on which interest\\nis usually very low? Why?\\n8. Is interest added to the price of products? If not, from\\nwhat source is it drawn?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0128.jp2"}, "129": {"fulltext": "CHAPTER XVI.\\nPROFITS.\\n70. What Profits Are. The word profits is used in\\na double sense. Sometimes it is meant to indicate the\\nwhole undivided surplus earnings of an industry, and\\nsometimes only what the manufacturer or farmer has left\\nafter paying rent and interest out of that surplus. In the\\nsense in which we are now considering it, profits means\\nthis final balance in the hands of the man who carries\\non the business. Sometimes they are called his wages,\\nbut in reality they are entirely different from wages.\\nWages are a fixed amount paid for a definite service,\\nwhile profits are entirely uncertain and may range from\\nnothing to millions of dollars a year. They are not paid\\nby an employer for services, but are the employer s own\\nsurplus, and come, if at all, in return for an indefinite\\namount of effort on his part, devoted to managing and\\norganizing the industry or utilizing natural forces in new\\nways.\\nProfits are the final undivided remainder of the sur-\\nplus earnings of industry. Rent and interest, being stip-\\nulated in advance, must be paid, if possible, even if they\\ntake all the surplus earnings of the business. If any-\\nthing remains after paying these, it is the manager s or\\nowner s profits.\\n71. No Average Rate of Profits. People fre-\\nquently speak of an average rate of profits, but in reality\\nthere is no such thing as an average rate of profits. On\\n119", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0129.jp2"}, "130": {"fulltext": "120 OUTLINES OF SOCIAL ECONOMICS\\nthe contrary, hardly any two competing concerns in the\\nsame industry earn the same profits, or rate of profits\\nThey range in every line of industry from nothing at\\none end to bonanza at the other. To speak of an aver-\\nage rate of profits is like speaking of the average height\\nof the mountains in this country. Some are only a few\\nhundred feet, but the highest is about fifteen thousand.\\nTo reduce them to an average would give no idea of any\\nof them and would probably be true of no one of them. If\\nthere was an average of profits, then industries would be\\nall uniformly prosperous, but everybody knows they are\\nnot. On the contrary, in every line of business there are\\nsome concerns that are barely holding on, others that are\\nactually dropping out every year because profits have dis-\\nappeared, while at the same time in the same industries\\nthere are some producers who are getting enormously\\nrich.\\nThis difference between the verge of failure and grow-\\ning success is the difference in profits. The explanation\\nfor this has already been given in the chapters on Value\\nand Cost of Production namely, that under competition\\nprices in any given market tend towards uniformity on\\nthe basis of the cost of producing the most expensive\\nportion of the required supply. It is easy to see that all\\nwho can produce at less cost than the price thus fixed will\\nhave the difference in profits and the profits will be\\nlarge or small according as the cost of production in each\\ndifferent concern is very much or only a little below the\\nprice received for the product. This cheaper cost de-\\npends on the better location, superior methods and abler\\nmanagement of the industry, as compared with its com-\\npetitors.\\n72. Profits the Incentive to Improvement. Profits,\\ntherefore, are the great incentive which economic law", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0130.jp2"}, "131": {"fulltext": "PROFITS 12 1\\nholds out to develop new methods of production, and\\ncareful and skilful management of industry. It rewards\\nimprovement with increased profit. The only way, in the\\nlong run, to increase profits, is by lessening the cost of\\nproduction, through some form of productive improve-\\nment, either by the use of better machinery or larger\\norganization, or more careful economies or more pro-\\ngressive direction of the business. The final profits may\\nbe made up from several sources partly from the excess\\nearnings of the land used, above what is paid in rent;\\npartly from the excess earnings of the capital used, above\\nwhat is paid in interest; but chiefly from the superior\\nmanagement or exceptional effort, forethought, enter-\\nprise and skill of those who conduct the business. With-\\nout good management many a business of fair oppor-\\ntunities not only fails to earn a profit but is unable to\\navoid loss, and goes into bankruptcy.\\n73. Effect of Competition. Improved methods and\\nsuperior management tend to increase profits, but com-\\npetition is all the time working to lower profits. The\\ncompetition usually results from some of the concerns\\nintroducing better machinery or methods, by which the\\noutput is increased. The effort then is to sell this in-\\ncreased output by underbidding the other competitors,\\nand, since the increased product has rendered some of\\nthe former supply unnecessary, the dearest competitors\\nare now forced to improve their methods or get out of\\nbusiness. In either case the price falls to the cost level\\nof the next dearest producers, and so on. This process\\nof course reduces the profits of all the other competitors,\\nall along the line, and they can only be restored to the\\nformer point by still further introducing improvements\\nto lower the cost of production. So the two movements\\nare constantly following each other, increase of the", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0131.jp2"}, "132": {"fulltext": "122 OUTLINES OF SOCIAL ECONOMICS\\nprofits by new cost-saving devices, and reduction of\\nprofits by competition. The profits are a stimulus to im-\\nprovements and progress, but they are only retained for\\na brief period. As soon as the methods which created the\\nlarge profits become generally known, others adopt them\\nand compete for the market, and before long the methods\\nthat once gave bonanza profits are out of date and mean\\nbankruptcy to any concern that retains them. In other\\nwords, all that was once received by the competitors as\\nprofits has passed to the public in lower prices. In this\\nway, for example, the price of cotton cloth has been re-\\nduced during the present century from more than fifteen\\ncents a yard to two or three cents, and manufacturers are\\nstill creating new profits even at this price, by introduc-\\ning new and better looms. All that difference in price\\nhas become a permanent gain to the public, while the\\nwinning of new profits and loss of old has served right\\nalong as the incentive and spur to improvements, by\\nwhich this cheapening of cloth has been made possible.\\nIn the period after the introduction of improved meth-\\nods and before competition has lowered the price, the\\ncapitalist gets the benefit of the margin. Perhaps he gets\\nrich, but that will depend on the extent of his improve-\\nment. If it is only a small one the profits will be but\\nslightly increased and will disappear before he gets very\\nrich. If his improvement is a great one, his profits will\\nbe large and he will become rich quickly. But, in any\\nevent, he cannot long retain the same rate of profits, ex-\\ncept by still further improving or enlarging his produc-\\ntive methods.\\nThus the whole process consists in giving the first in-\\ncrease of wealth to those who directly bring it into ex-\\nistence, and then setting forces in operation which grad-\\nually and sometimes very rapidly distribute it to the en-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0132.jp2"}, "133": {"fulltext": "PROFITS 123\\ntire consuming public. This gives the necessary reward\\nfor the special effort, and finally gives the results of the\\nimprovements to society at large. Thus it really conies\\nabout that the increase and wide distribution of wealth,\\nwhich the advocates of socialism believe requires a revo-\\nlution to secure, is actually going on by the silent oper-\\nation of our existing economic forces.\\n74. Profits Not a Tax on Consumers or Wage\\nEarners. Many people believe that the profits of an in-\\ndustry mean just so much taken out of the consumers\\nwho buy the products. But nothing can be taken out of\\nthe consumer which cannot be added to the price. Since\\nprices are determined by the cost of production in that\\nportion of the concerns which have no profits, or prac-\\ntically none, then, of course, profits are not added to the\\nprice, and if they are not added to the price they cannot\\nbe a tax on the consumer.\\nSuppose profits were abolished by law. That could not\\nmaterially affect prices, because they are determined by\\nthe cost of that portion of the product which receives no\\nprofit. To take away the profits would make the pro-\\nducers who create them poorer, but it would not make\\nthe consumers richer.\\nIt may be asked, who pays the profits if the consumers\\ndo not? Strictly speaking, nobody pays the profits; they\\ncome out of nature. They are not a tax on anybody. They\\nare the saving from what otherwise would be simply\\nhigher cost to everybody. They come as the result of\\nmaking nature do more for the same expense. Nature\\nworks for nothing. It costs something to utilize natural\\nforces, but the forces themselves are free. To the extent\\nthat they can be made to work for less than it costs to\\nfurnish human force, nature supplies a surplus, and it is\\nfrom this surplus, produced by the use of successive", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0133.jp2"}, "134": {"fulltext": "124 OUTLINES OF SOCIAL ECONOMICS\\nnew instruments for harnessing natural forces, that\\nprofits are drawn. They are not a tax added to prices, but\\nare a reward for devising means to make nature do an\\nextra task without charge.\\nNor are profits a tax upon the wage-earner. Wages,\\nas before explained, are a permanent item in all cost of\\nproduction. Therefore wages are not paid from profits\\nbut enter into cost of production, and even the producers\\nwith the poorest methods have to pay wages. No pro-\\nducer can have profits until after wages have been paid.\\nHe can even escape paying for his raw material easier\\nthan he can avoid wage claims, since in cases of bank-\\nruptcy the laborer in nearly all modern countries has the\\nfirst lien on the assets. Wages tend to be uniform in all\\nindustries of the same kind in the same market, and they\\nare all a permanent part of the cost paid by all the com-\\npetitors. Whatever affects all competitors alike cannot\\naffect the profits, because profits arise purely from the\\ndifferences and not the similarities in costs.\\nTherefore, it would be as futile to try to increase wages\\nby abolishing profits as it would be to reduce prices by\\nabolishing profits. The only way prices can be perma-\\nnently lowered is by lessening the costs of production by\\nuse of more scientific methods. The only way wages\\ncan be increased is by raising the standard of living of the\\nworkers, thus increasing their necessary cost. Social wel-\\nfare demands the gradual economic lowering of prices\\nand economic raising of wages. Both are forms of prices,\\nand are governed by cost. That which should be low-\\nered can be lowered only by reducing the costs, by\\ngreater application of science to nature; and that whids\\nshould be raised can be raised only by an increase of itic\\ncost, through improvement of the standards, ideas, habits\\nand character of the laborers. Progress will not come", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0134.jp2"}, "135": {"fulltext": "PROFITS 12 5\\nby abolishing profits, but by aiding the forces that make\\nwealth cheap and man dear.\\nSUGGESTED READING.\\nIn Principles of Social Economics/ Chapter VI. of\\nPart III., on The Law of Interest.\\nAdditional References. In Marshall s Economics of\\nIndustry, Chapters VII. and VIII., of Book VI. These\\nchapters relate to profits, or earnings of management,\\nand bring- out many interesting points one particularly,\\nshowing that the cost of living or support of the owner\\nor manager of the business is really a part of the cost of\\nconducting the business, and not to be considered as\\nprofits.\\nIn Mill s Principles of Political Economy, Chapter\\nV. of Book IV., which contains some practical comments\\non Consequences of the Tendency of Profits to a\\nMinimum.\\nIn Nicholas P. Oilman s A Dividend to Labor,\\nChapter I., discussing some of the ethical and social as\\nwell as industrial aspects of the employer s service to\\nsociety and obligation to his employees.\\nEXTRACTS FROM READINGS.\\nHow Profits Are Made and Lost. For instance, eco-\\nnomies have lately been introduced into some branches\\nof iron manufacture by diminishing the number of times\\nwhich the metal is heated in passing from pig iron to its\\nfinal form; and some of these new inventions have been\\nof such a nature that they could neither be patented nor\\nkept secret. Let us suppose then that a manufacturer with\\na capital of \u00c2\u00a350,000 is getting in normal times a net profit\\nof \u00c2\u00a34,000 a year, \u00c2\u00a31,500 of which we may regard as his\\nEarnings of Management, leaving \u00c2\u00a32,500 for the other", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0135.jp2"}, "136": {"fulltext": "126 OUTLINES OF SOCIAL ECONOMICS\\ntwo elements of profits. We assume that he has been\\nworking so far in the same way as his neighbors, and\\nshowing an amount of ability which, though great, is no\\nmore than the normal or average ability of the people\\nwho fill such exceptionally difficult posts that is, we as-\\nsume that \u00c2\u00a31,500 a year is the normal earnings for the\\nkind of work he has been doing. But as time goes on, he\\nthinks out a way of dispensing with one of the heatings\\nthat have hitherto been customary; and in consequence,\\nwithout increasing his expenses, he is able to increase his\\nannual output by things which can be sold for \u00c2\u00a32,000 net.\\nSo long, therefore, as he can sell his wares at the old\\nprice, his Earnings of Management will be \u00c2\u00a32,000 a year\\nabove the average; and he will earn the full reward of\\nhis services to society. His neighbors, however, will\\ncopy his plan, and probably make more, than average\\nprofits for a time. But soon competition will increase the\\nsupply and lower the price of their wares, until their\\nprofits fall to about their old level for no one could get\\nextra high wages for making eggs stand on their ends\\nafter Columbus plan had become public property.\\nMany business men whose inventions have in the long\\nrun been of almost priceless value to the world, have died\\nin poverty; and while many men have amassed great\\nwealth by good fortune, rather than by exceptional ability\\nin the performance of public services of high importance,\\nit is probable that those business men who have pio-\\nneered new paths have often conferred on society bene-\\nfits out of all proportion to their own gains, even though\\nthey had died millionaires. From Marshall s Eco-\\nnomics of Industry, Chapter VII. of Book VI.\\nProfits Restore Expended Capital. In the first place,\\nthen, this view of things greatly weakens, in a wealthy\\nand industrious country, the force of the economical ar-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0136.jp2"}, "137": {"fulltext": "PROFITS 127\\ngument against the expenditure of public money for\\nreally valuable, even though industrially unproductive,\\npurposes. If for any great object of justice or philan-\\nthropic policy, such as the industrial regeneration of Ire-\\nland, or a comprehensive measure of colonization or of\\npublic education, it were proposed to raise a large sum by\\nway of loan, politicians need not demur to the abstraction\\nof so much capital, as tending to dry up the permanent\\nsources of the country s wealth, and diminish the fund\\nwhich supplies the subsistence of the laboring population.\\nThe utmost expense which could be requisite for any of\\nthese purposes, would not in all probability deprive one\\nlaborer of employment, or diminish the next year s pro-\\nduction by one ell of cloth or one bushel of grain.\\nFrom Mill s Principles of Political Economy, Chapter\\nV. of Book IV.\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. Why is it confusing and inadvisable to speak of profits as\\nthe employer s wages?\\n2. How do profits differ from rent and interest? What have\\nthey in common with rent and interest?\\n3. Is there any average rate of profits Give reasons.\\n4. What great incentive do profits offer?\\n5. What is the effect of competition on profits? Describe the\\nprocess, and show how profits are constantly distributed\\nto the public.\\n6. How long can the producer continue to receive the profits\\nfrom an improvement in production?\\n7. Do profits come out of the consumer? Give reasons.\\n8. What effect have profits on workingmen s wages?\\n9. From what source are profits really drawn?\\n10. Would abolition of profits benefit the wage earner? What\\nare the two great opposite economic movements by which\\nthe community is really benefited?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0137.jp2"}, "138": {"fulltext": "CHAPTER XVII.\\nSOCIALISM.\\n75. What Socialism Is. Socialism is a theory of\\nsocial reform a proposition for improving the conditions\\nof the masses by abolishing private industry and making\\nthe state, or government, the owner and manager of all\\nforms of production. It is the most comprehensive of all\\nreform theories. Indeed, there is hardly a movement for\\nsocial reform in this country that is not more or less fla-\\nvored with socialism. The populist, single-tax, and mu-\\nnicipal ownership movements, and many large labor or-\\nganizations, are to a greater or less extent socialistic\\nin character, although often their respective advocates\\ndo not seem to realize it.\\nSocialism is a distinct theory, based on the belief that\\nall rent, interest and profits are robbery that the labor-\\ners produce all wealth, which, therefore, should all go\\nto the laborers. Socialists believe that the laborers are\\nin effect cheated out of any part of the total production\\nwhich does not go to labor.\\nIt will be seen at once that those who advocate abol-\\nishing rent are at least one-third socialist. Those who\\nbelieve in abolishing interest and those who would do\\naway with profits are also socialists, to that extent,\\nthough perhaps unconsciously. But the avowed socialist\\ndeclares that all three, rent, interest and profits, are\\nrobbery, and demands a system of industry which would\\nabolish them all. If it be true that labor produces all\\n128", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0138.jp2"}, "139": {"fulltext": "SOCIALISM I29\\nwealth, then the socialists would seem to be right, be-\\ncause surely those who produce wealth are entitled to\\npossess it. If this theory be true, capitalists are just\\nso many parasites on society, and the middlemen who\\nbuy and sell are simply robbers who help themselves at\\nthe laborers expense.\\n76. Does Labor Produce All Wealth But is it\\ntrue that labor produces all wealth? Our study of the\\nservice rendered by each of the factors in production has\\nalready shown, indirectly, that this notion is wholly erro-\\nneous. The capacity of the human race to produce\\nwealth by individual labor is not much greater to-day\\nthan it was a thousand years ago. Personal dexterity\\nin many lines is not so great. In China and Japan the\\ndexterity of laborers in some occupations is even greater\\nthan in England and the United States. The fact is, the\\npower of unaided human labor to produce wealth has\\nnot materially increased. Nevertheless, wealth has enor-\\nmously increased but this has been due. to the fact that\\nnature, in a hundred ways, has been made to work.\\nWhen nature is made to work, whether it drives an en-\\ngine, pumps water, or turns a windmill, it is doing what\\nhuman muscle, would have to do, if the result were to be\\naccomplished at all.\\nFor instance, suppose two men are rowing a boat, tug-\\nging away with their oars. One of them hoists a sail\\nand lets the wind force them along much faster, and the\\noars can be thrown aside. It is not human effort that is\\nnow propelling the boat, but it is the wind, by means\\nof the sail.\\nThe same is true wherever steam, electricity, gravita-\\ntion, wind, water or any natural forces are used. In this\\nway, the various forms of machinery used in England\\nand the. United States probably produce more wealth", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0139.jp2"}, "140": {"fulltext": "130 OUTLINES OF SOCIAL ECONOMICS\\nthan could be produced by the unaided hand labor of the\\nentire human race. Every additional dollar s worth of\\nwealth brought into existence in this way is produced not\\nby human labor but by nature in addition to human\\nlabor. Nature s forces are utilized by means of capital\\nthat is, by wealth that has been previously produced for\\njust this purpose.\\nIt is sometimes said that this capital, by which nature\\nis utilized, is stored-up labor. It is nothing of the kind.\\nThere is no such thing as stored-up labor. Labor is not\\nstored up; it is expended, and can never be used again.\\nWhat is stored up is the product, whether product of\\nlabor only or of labor and natural forces. If a few days\\nlabor is expended in making a machine, that machine is\\nnot stored-up labor it is the product or result of labor.\\nIt is something new that labor has brought into exist-\\nence, but the labor put on it is expended and gone forever.\\nIf the laborers who produced that machine had been\\nidle during those few days, their labor for that time\\nwould have been lost and gone just as completely.\\nLabor cannot be saved in the sense of being stored up,\\neither by using it or not using it. If the effort is not\\nexpended, then the labor is lost because it was not used.\\nIf it is expended, it is gone forever, but what remains\\nis the product. The difference to the world between\\nnot using and using any given labor is that by using it\\nwe have a product, by not using it we have not.\\nThe wealth thus produced in the shape of a machine\\ncan be used to make nature produce many times as\\nmuch additional wealth as the labor devoted to making\\nthe machine could have produced. All the wealth that\\nis produced by the machine, more than the labor used\\nin making and afterwards operating it could have pro-\\nduced alone, is net gain, and that net gain is due to the", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0140.jp2"}, "141": {"fulltext": "SOCIALISM 131\\nnatural forces made available by the use of the machine.\\nIt is obvious that if by hand labor, however skilful,\\nonly a given amount can be produced, say ten units, and,\\nby the aid of steam or electricity, made available by ma-\\nchinery requiring only this same amount of labor to con-\\nstruct, operate and maintain it, thirty units can be pro-\\nduced, the extra twenty are the product of the steam or\\nelectricity. If there is any doubt upon that point, all that\\nis necessary is for the laborer to try to get along with\\nout the machinery, and he will find that only ten units can\\nbe produced. This additional twenty units of product\\nis not entirely without cost. Nature does not quite\\ndo it for nothing, because the machinery which is neces-\\nsary to utilize nature costs something to maintain and\\noperate, though perhaps only a fraction of what the la-\\nbor to do the whole work would cost. All the product\\nover and above what the labor required to make, oper-\\nate and maintain the machinery could have produced\\nalone and directly, is clear gain contributed by nature.\\nLabor, if separated from capital, could not do much\\nmore to-day than it did a century ago, man for nan.\\nPersonal labor has not materially increased in produc-\\ntive efficiency, and laborers do not work harder or\\nlonger; on the contrary, the toil is less exhausting and\\nthe hours of work shorter. Therefore, our great in-\\ncrease of wealth cannot be exclusively the product of\\nlabor. If labor does not produce all wealth, it is not\\nnecessarily true that all wealth rightfully belongs to\\nlabor.\\n77. The Economic Division of Wealth. What,\\nthen, does become of all this increased wealth? As ex-\\nplained in the chapters on rent, interest and profits, at\\nfirst it goes to the capitalists. Why? Because capital,\\nby applying machinery to nature, brings the increased", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0141.jp2"}, "142": {"fulltext": "132 OUTLINES OF SOCIAL ECONOMICS\\nwealth into existence. Laborers do not introduce the\\nmachinery on the contrary, they usually oppose the at-\\ntempts of capitalists to make natural forces produce\\nwealth. They oppose it in the belief that steam or\\nelectricity will throw them out of work. The capitalist\\nwho first introduces a successful improvement is the one\\nwho reaps the first reward. But very soon others discover\\nthe way he did it, imitate his process or machine, and be-\\ngin to compete for the increased wealth. This forces down\\nthe price of the product and finally transfers, through\\nlower prices, a large part of this increased wealth to the\\npublic. At the same time, the laborers, through their\\norganizations, begin to demand a share of the new wealth\\nin the form of higher wages. So that, while the capital-\\nist, by applying productive wealth to nature, brought\\ninto existence a new stream of wealth, which for a time\\ncomes to him as profits, it is finally transferred in the\\nform of cheaper commodities and higher wages to the\\ncommunity, including the laborers.\\nLabor does not produce all wealth, but in this way it\\ndoes share in the wealth that nature brings into exis-\\ntence. This is not merely theory, but is proved by ex-\\nperience everywhere. If the wage-earning classes in\\nmodern machine-using countries were only receiving as\\nmuch as they could earn with their bare hands, they\\nwould be as poverty-stricken as the hand-labor masses\\nof India, China and Russia. They could not, alone, pro-\\nduce any more, man for man, than the Chinese or Rus-\\nsians. The superiority in the earnings, comforts and\\nstandard of life of workingmen in countries having the\\ncapitalist system proves that the laborers do share con-\\nstantly in the increased wealth which the application of\\ncapital to nature brings into existence.\\n78. Socialism in History. Historically, socialism is", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0142.jp2"}, "143": {"fulltext": "SOCIALISM 133\\nvery old. The earliest type of industrial society was\\nlargely socialistic. It should be remembered that the\\nessential feature of socialism is public ownership of the\\ninstruments of production, but this has not always taken\\nthe same form. The early village community, of which\\nSir Henry Maine and others have given such extensive\\naccounts, was socialism of the most arbitrary kind. The\\ngovernment furnished the employments, fixed the in-\\ncomes, established the religion, arranged or regulated the\\nmarriages in fact, left little or nothing for individual\\nchoice and responsibility. This was the character of early\\ncommunities. In the middle ages, throughout Christen-\\ndom, the community was mostly represented by the\\nchurch, and practically everything was determined by\\nthe church authorities.\\nThe progress of civilization has been steadily away\\nfrom that type of government. Wherever progress has\\nshowed itself it has taken the form of specialization of\\nindustry and growth of individual interests. This always\\nbrought with it a growing variety of ideas and activities,\\nand assertion of personal rights.\\nAmong the earliest rights demanded were rights of in-\\ndustry, including the right to own and sell the products\\nof one s labor, or to sell one s labor direct, the right to\\nselect an occupation, the right to produce whatever one\\npleased, and so on. This brought with it gradually\\na greater and greater range of personal activities, and\\na smaller and smaller sphere, relatively, of paternal\\nmanagement and regulation by the state or community.\\nLater came further separations and divisions of au-\\nthority and action. The right of exercising political gov-\\nernment was taken from the church and absorbed entirely\\nby the temporal authorities. The temporal authority was\\nstill supposed to be selected by divine right, but even", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0143.jp2"}, "144": {"fulltext": "134 OUTLINES OF SOCIAL ECONOMICS\\nthis has given way, in the more advanced nations, to the\\nidea of the people s right to govern. This has brought\\nwith it, naturally, the right of choosing one s own re-\\nligion, the right of holding and advocating political\\nopinions, the right to decide about education of one s\\nchildren and so, little by little, the sphere of individual\\nactivity, responsibility, rights and authority has widened,\\nthus diminishing the element of socialism and increasing\\nthe element of individualism in society.\\nThis gradual supplanting of socialism or paternalism\\nby individualism is the mercury that indicates the state\\nof advancement of human freedom. To the extent\\nthat the government does for the citizen what he can do\\nas well or better individually, it takes away his freedom,\\nresponsibility and opportunity, making him dependent in-\\nstead of self-reliant, and depriving the world of the ben-\\nefits of individual enterprise, ingenuity and energy.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Sections I. and\\nII. of Chapter II., Part IV. These sections discuss quite\\nthoroughly the questions of what the state, or political or-\\nganization of the community, really is, and its relation to\\nindividual citizens. A right understanding of this prob-\\nlem is very important in judging the claims of socialism.\\nIn the same connection it would be well to re-read Sec-\\ntions II. and III. of Chapter VI., Part III., pointing out\\nthe error in Karl Marx s theory of surplus value,\\nwhich is relied on by most socialists as proving that labor\\nis constantly being plundered by capital.\\nAdditional References. In John Rae s Contemporary\\nSocialism, from page 155, in Chapter IV., to end of the\\nchapter. This chapter is on Karl Marx, and the por-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0144.jp2"}, "145": {"fulltext": "SOCIALISM 135\\ntion suggested is a statement and criticism of Marx s\\neconomic theory as laid down in his great work on Cap-\\nital. Chapter X., on Socialism and the Social Ques-\\ntion/ is also recommended it discusses a number of the\\nmore common charges made by socialists against our\\npresent industrial system.\\nIn William Graham s Socialism, New and Old/ Chap-\\nter I., on The Forms of Socialism; and Sections I. and\\nII. of Chapter II., describing early types of socialism,\\namong the Jews, under the catholic church, under feudal-\\nism, etc. For those desiring to make a more thorough\\nstudy of the development of socialism as a theory, the re-\\nmaining six sections of Chapter II., and the whole of\\nChapters III. and IV. are recommended. These chapters\\ndescribe the different phases of socialist doctrine from the\\ntime of the Jews and early Christian era (above recom-\\nmended for reading) down through the nineteenth cen-\\ntury to The New Socialism and its Argument.\\nIn W. H. Mallock s Labour and the Popular Wel-\\nfare, Chapter VI. of Book II., and the four chapters of\\nBook III. These chapters are devoted to showing the\\nvery large part taken by Ability in the production of\\nwealth but it should be noted that under this head Mr.\\nMallock includes the capital directed by Ability, the\\nobject being to show, somewhat roughly, what part of\\nour wealth production is due to labor and what part to\\ncapital and management.\\nThe pamphlet, Economic Basis of Socialism, by\\nGeorge Gunton, is also recommended.\\nEXTRACTS FROM READINGS.\\nSocialism s Aim and Method. Socialism is that system\\neconomic and political, in which the production of wealth\\nis carried on solely by the state, as the collective owner of", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0145.jp2"}, "146": {"fulltext": "136 OUTLINES OF SOCIAL ECONOMICS\\nthe land and instruments of production, instead of by\\nprivate capitalist employers or companies while the dis-\\ntribution in like manner is made by the state on some\\nassumed principles of justice, which give to each in pro-\\nportion to his work, instead of being as now determined\\nlargely and immediately by contracts, and ultimately by\\nlaws of property and inheritance. This, the only true\\nsocialism according to its adherents, is now generally\\ncalled collectivism, to denote the collective ownership or\\nownership by the state, as the representative of all, of the\\nland and instruments of production. It distinguishes it-\\nself from communism, inasmuch as it admits of private\\nproperty in articles of consumption, and to a certain lim-\\nited extent, of inequality of shares, accumulations, and\\ninheritance. Only it suppresses private enterprise, it will\\nnot allow individuals to use their accumulations to set\\nothers to labour for them, with a view to make profit from\\ntheir labour, nor to lend for the sake of interest, nor to\\nlet for the sake of rent or hire, nor in any way to make\\nprivate gains from their superfluous goods; because by\\nthese means great inequality might come back, and it is a\\nprincipal aim of the new socialism not only to extinguish\\ngreat inequality, but to prevent forever its return.\\nFrom William Graham s Socialism, New and Old,\\nChapter I.\\nLabor s Share of Wealth Increases the Faster. Greg-\\nory King made an estimate of the distribution of wealth\\namong the various classes of society in England in 1688,\\nfounded partly on the poll-books, hearth-books, and other\\nofficial statistical records, and partly on personal observa-\\ntion and inquiry in the several towns and counties of\\nEngland; and Dr. C. Davenant, who says he had care-\\nfully examined King s statistics himself, checking them\\nby calculations of his own and by the schemes of other", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0146.jp2"}, "147": {"fulltext": "SOCIALISM 137\\npersons, pronounces them to be Very accurate and more\\nperhaps to be relied on than anything that has been ever\\ndone of a like kind. Now, a comparison of King s\\nfigures with the estimate of the distribution of the na-\\ntional income made by Mr. Dudley Baxter from the re-\\nturns of 1867, will afford some sort of idea though of\\ncourse only approximately, and perhaps not very\\nclosely so of the changes that have actually occurred.\\nThe average income of a working-class fam-\\nily in King s time was \u00c2\u00a312 12s. (including his artisan\\nand handicraft families along with the other laborers)\\nthe average income of a working-class family now is \u00c2\u00a381.\\nThe average income of English families generally in\\nKing s time was \u00c2\u00a332 the average income of English\\nfamilies generally now is \u00c2\u00a3162. The average income of\\nthe country has thus increased five-fold, while the aver-\\nage income of the working class has increased six and a\\nhalf times. The ratio of the working-class income to the\\ngeneral income stood in King s time as 1 123/2 and now as\\n1 :2. In 1688, 74 per cent, of the whole population be-\\nlonged to the working class, and they earned collectively\\n26 per cent, of the entire income of the country in 1867\\naccording to the basis we have adopted, though the\\nproportion is doubtless really less 80 per cent, of the\\nwhole population belonged to the working class, and they\\nearned collectively 40 per cent, of the entire income of\\nthe country. Their share of the population has in-\\ncreased 6 per cent. their share of the income 14 per\\ncent. From Rae s Contemporary Socialism, Chap-\\nter X.\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. What is socialism? On what charge against industrial so-\\nciety is it based?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0147.jp2"}, "148": {"fulltext": "138 OUTLINES OF SOCIAL ECONOMICS\\n2. What is the aim of socialism, and how does it propose to\\naccomplish that aim?\\n3. How does socialism compare with other prominent reform\\nmovements? What have each of these movements in\\ncommon with socialism?\\n4. What theory about the production of wealth is the basis of\\nsocialist doctrine?\\n5. Is this theory correct? What is the other great active factor,\\nbesides labor, in wealth production, and how is it utilized?\\n6. What do the socialists claim as to stored-up labor? Can\\nthere be any such thing as stored-up labor? Give\\nreasons.\\n7. What portion of the wealth produced by the aid of natural\\nforces is net gain to the world? Is this the result of labor\\nor of application of capital?\\n8. How does the producing capacity of hand-labor, unaided by\\nmachinery, compare with that of, say, a century ago, man\\nfor man? How does it compare as between the oriental\\nand western nations\\n9. To whom does the increase of wealth due to application of\\ncapital first go? Why does it not go directly to the la-\\nborers?\\n10. When and in what ways do the laborers and the public share\\nin this increased wealth?\\n11. What comparison proves that labor does share in the wealth\\nincrease coming from application of capital to nature?\\n12. Under what state of society has socialism actually existed?\\nWhat were its characteristics under those conditions?\\n13. What effect has the progress of society had on these social-\\nistic forms of government?\\n14. Show the steps by which the movement towards greater\\nindividual liberty has developed.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0148.jp2"}, "149": {"fulltext": "CHAPTER XVIII.\\nsocialism Continued.\\n70. What Socialism Promises. Just as socialism is\\nthe most thoroughgoing in its plan of reorganizing so-\\nciety, so it is the most sweeping in its promises of the\\nuniversal comfort and justice it would usher in. Edward\\nBellamy, in his Looking Backward/ a book which at-\\ntained wide popularity some years ago, described in de-\\ntail an imaginary perfected state of society, wherein\\nevery man, woman and child received a generous income,\\nthe same to each one, regardless of the service per-\\nformed; inequality, injustice, crime, poverty, ignorance\\nand intemperance had disappeared, and happiness was all\\nbut universal. This had come about entirely by making\\nthe government the sole owner and manager of all pro-\\nductive industry, .with an elaborate and complicated\\nmethod of determining the lines of industry or labor\\nwhich each man should follow. This is only one of\\nmany books that have appeared from time to time, pur-\\nporting to describe an ideal state of society, some writ-\\nten purely as fanciful works of imagination, others as\\nvery earnest and sincere attempts to point out a swift\\nand easy solution for most of the great problems of hu-\\nman life. Perhaps the most famous of them all is Sir\\nThomas More s Utopia, published in 15 16, describing\\nthe conditions and customs of life in a supposable ideal\\ncommunity where all things were held and enjoyed in\\ncommon.\\n139", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0149.jp2"}, "150": {"fulltext": "I/J.O OUTLINES OF SOCIAL ECONOMICS\\nSuch pictures are always alluring, and appeal strongly\\nnot only to the sentimental and visionary, but to thou-\\nsands of earnest, sympathetic people who are tormented\\nby the hardships and suffering they see about them and\\nreadily turn to the most summary and radical proposi-\\ntions that are offered as a cure. No one can be blind to\\nthe defects, injustices, poverty and misery that are still\\nsuch prominent features of human life; and ought not to\\nif he could. It is not here that those who believe in\\npreserving our present social system differ with the so-\\ncialists. The faults, the shortcomings, excepting heated\\nexaggerations, are admitted, but the great point of dif-\\nference is how to get rid of them what remedy will root\\nout these evils without sacrificing in the process more\\nthan is gained It must be remembered that poverty, ig-\\nnorance, crime, oppression and the thousand forms of\\nhuman suffering have existed since the beginning of the\\nhuman race, and under almost every conceivable form\\nof government, laws and religion. On the other hand,\\nit is becoming clear, as our knowledge of history in-\\ncreases, that all along the lot of man has, by slow and\\npainful steps, with many and wearisome delays, been\\ngrowing better. By comparing the condition of the\\nmasses in the most advanced countries to-day with that\\nin the most backward, or with that in the same advanced\\ncountries several hundred years ago, this fact of pro-\\ngress, of improvement, is made very clear. There are\\nstill great numbers who are deep in poverty, but the\\nproportion of these to the whole is less than ever before.\\nComfort is more general than ever before that is, it is\\nenjoyed by a much larger proportion the great majority\\nin several countries than ever before and the same is\\ntrue of personal freedom in religion and government, se-\\ncurity in personal and domestic rights, reasonable and", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0150.jp2"}, "151": {"fulltext": "SOCIALISM 141\\nhealthful conditions of labor, decent conditions of living,\\nopportunities for education, recreation and culture. None\\nof these things are yet anywhere near so abundant, foi\\nthe mass of the people, as they should be indeed, from\\nthe standpoint of the more advanced the life and oppor-\\ntunities of the millions seem pitifully meager. But, since\\nit is true that the lot of the average man is improving,\\nand never more rapidly, certainly and universally than\\nduring the century just closing, we are compelled to ask\\nourselves, soberly and without prejudice, whether we are\\nnot likely to approach the ideal, or at least vastly im-\\nproved, social conditions towards which we are strug-\\ngling, sooner, more safely, and with less sacrifice of the\\ngreat rights of personal liberty for which men have\\nlabored and fought all down the ages, by preserving our\\npresent industrial and social system, developing its ad-\\nvantages and weeding out its defects, than by running the\\nfearful risk of a radical, strange, experiment. Especially,\\nwe ought to ask this when the experiment is one that\\ntakes little account of the imperfections of human nature,\\nbut would overturn our existing institutions, abolish pri-\\nvate industry, abolish the personal right to choose occupa-\\ntions, take away the stimulus to industrial progress which\\nis now orTered by the hope of making profits, and in gen-\\neral place every man s work and opportunities absolutely\\nin the hands of the government, which would of necessity\\nhave to be a despotism, a despotism of the mass rather\\nthan of a prince, to be sure, but a despotism nevertheless.\\nIn other words, ought we to put our faith in the method\\nof natural evolution or of arbitrary revolution\\n80. Difference Between Socialism, Communism and\\nAnarchism. To determine this question we must see\\njust what socialism proposes to do, and judge how it\\nwould probably work in practice. There is a great dif-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0151.jp2"}, "152": {"fulltext": "1-42 OUTLINES OF SOCIAL ECONOMICS\\nference between the plan proposed by socialists and that\\noffered by the communists and anarchists. Commun-\\nism merely proposes that all property shall be held in\\ncommon, consumable products as well as productive cap-\\nital, and used freely as each one desires. Anarchism\\nwould abolish all government and allow every man to\\nwork and live as he chose, produce what he pleased and\\ndo what he liked with it, free from any hindrance or in-\\nterference by authority of any kind. The only limit it\\nwould place to the domination of one man by another is\\nthe personal resistance of that other man, and anarchists\\nbelieve this would lead to voluntary recognition by each\\nof the rights of all, without government of any kind.\\nThe theory only needs stating to show its utterly vision-\\nary and impracticable character.\\n81. Proposed Methods of Socialism. Socialism is\\nthe very opposite of anarchism. It proposes that the\\ncommunity, through the government, shall take pos-\\nsession of all the means or instruments of production\\ncapital, including all factories, railroads, steamboats, etc.,\\nand land, including, of course, mines, forests, oil wells\\nand all natural resources whatsoever. Private ownership\\nof the means of production in any form is to be pro-\\nhibited. All production must be under public manage-\\nment, with instruments owned by the public, and then, of\\ncourse, the public would get all the benefit. The capitalists\\nand middlemen would become unnecessary; they would\\nbe ordered into other branches of the productive system\\nas the government might provide opportunity. Socialism\\npromises by this method to abolish all injustice, to make\\npoverty on the one hand and large wealth on the other\\nimpossible.\\nAlthough nearly all socialists are agreed on the general\\nfeatures of this program, there is the widest difference", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0152.jp2"}, "153": {"fulltext": "SOCIALISM 143\\namong them as to details. Some believe that the man-\\nagers or superintendents of the various industries should\\nbe chosen by popular vote; others think they should be\\nselected by test examinations. Some insist that each\\nman s share of the wealth produced should be the same\\nethers advocate a so-called scientific division, according\\nto the hardship of the task, or else according to\\nthe value of the service to society, which would come\\nback dangerously near to our present system of wages\\nand profits. Some demand that socialism shall be estab-\\nlished by a sudden, forcible, revolution others want it to\\ncome by a majority vote in the regular political method\\nstill others expect it to develop naturally, through co-\\noperative experiments, municipal ownership of street\\nrailroads, gas plants and the. like, government ownership\\nof railroads, and so on.\\n82. Economic Effects of Socialism. The complete\\nscheme of modern socialists has never, of course, been\\napplied anywhere, but there have been many approaches\\nto it and many experiments on a small scale. As we saw\\nin our brief review of the history of socialism in prac-\\ntice, wherever the paternal or socialistic element in gov-\\nernment has been most prominent, progress has been\\nleast. In such countries as Russia we find the greatest\\namount of collective authority and paternalism. In not\\na few instances in these countries the primitive village\\ncommunity with its many common-ownership features\\nstill exists, and the progress of industrial diversification\\nhas been very slight. Under these conditions individual\\nrights have scarcely been born, and authority, both po-\\nlitical and religious, is despotic. The individual counts\\nfor but little. He is not recognized or consulted about\\nthe government or even about himself, and if he ven-\\ntures to have an opinion it may cost him his life.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0153.jp2"}, "154": {"fulltext": "144 OUTLINES OF SOCIAL ECONOMICS\\nAs we ascend in the scale of progress we find in the\\ndifferent nations an increasing diversity of industry and\\nindividual enterprise, extension of personal rights, re-\\nligious and political freedom, and a narrowing of the\\nrange of the government s activity. Thus Germany and\\nFrance are less paternal and communistic than Russia or\\nPersia. England and America are still less paternal than\\nFrance or Germany, and correspondingly higher in free-\\ndom and civilization.\\nSocialism asks that the individual freedom and initia-\\ntive which have been won by centuries of struggle and\\nhardship shall be replaced by a social despotism of ma-\\njority rule. The right to engage in industry, to have and\\nkeep or dispose of the fruits of one s labor, to exercise\\nindividual judgment and responsibility, is to be super-\\nseded by the collective authority of the community\\nthrough the government. Of course modern socialism\\nwould not try to duplicate the early village community\\nor the Persian type of authority. It would not have a\\ndivinely-appointed czar, but it would have mediocre pop-\\nularly-elected bureaus and officials with power to regu-\\nlate absolutely all the most important interests that affect\\nthe individual. Nothing, probably, could be more clumsy,\\ncostly and inefficient as a director of industrial affairs\\nthan such a committee, elected by popular vote or by any\\npolitical machinery yet devised. To take the tools of in-\\ndustry out of the hands of private individuals and turn\\nthem over to the government would at once put industrial\\nenterprises into the control of inferior and very often in-\\ncompetent management.\\nIt has been found from long experience that under\\ndemocratic government the very best are seldom chosen\\nfor any position, from president of the United States\\ndown to ward alderman. The criticisms of the press and", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0154.jp2"}, "155": {"fulltext": "SOCIALISM 145\\ncomplaints of citizens testify that our really ablest and\\nbest qualified men are rarely elected to any public office,\\nexecutive or legislative. The reason for this is simply\\nbecause they have to be elected, instead of reaching their\\npositions by natural merit-testing competition. Whoever\\nhas to be elected to any position will necessarily have to\\nrepresent those who elect him, and whoever represents\\neither a party or the public at large is almost invariably\\nbelow the best. He must represent not the best but the\\nmajority, which is always mediocre. Control and man-\\nagement of industry by majority vote is a long way be-\\nhind what the individual expert could give.\\nThis has been demonstrated by all the experiments that\\nhave yet been made, and they are very numerous. Many\\nexperiments have been made in this country and Europe\\nin socialistic industrial communities. Robert Owen s\\nsettlement at New Harmony, Indiana, in 1825 the nu-\\nmerous experiments based on the ideas of the French\\nreformer Fourier, a little later; the Brook Farm com-\\nmunity near Boston, in the early forties and several so-\\ncialistic communities of Americans in California, Mexico,\\netc., all have had to be abandoned. Not one proved an\\neconomic success, because they lacked individual initia-\\ntive and personal enterprise, and lost the advantage of\\nexpert effort and management. They were organizations\\nin which the mediocre majority tried to make everything\\nequal and uniform, and so suppressed the growth of the\\nbest.\\nSocialism could only achieve what it promises by caus-\\ning some immense economies or increase in the produc-\\ntion of wealth, but all experience shows that removal of\\ncompetition has just the opposite effect, leading to greater\\nwaste in methods and general lessening in productive\\nactivity. Mere equal division of what is now produced", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0155.jp2"}, "156": {"fulltext": "146 OUTLINES OF SOCIAL ECONOMICS\\nwould leave nothing for new enterprises and would add\\nbut little to the income of the wage-earning classes, while\\neven this would tend to disappear with the slackening of\\nproductive energy.\\nNumerous experiments have been made in manufac-\\nturing industries on a plan of co-operation very much\\nlike socialism. A large number of cooperative cotton\\nfactories were built in the north of England in the sixties\\nand seventies. The management of these mills was de-\\ntermined by the majority vote of the stockholders as in-\\ndividuals, each counting one, regardless of the amount\\nof stock he might hold. The theory of this was that one\\nman was just as wise and efficient as another, and that\\nthe man who had one share of stock was entitled to just\\nas much voice in the management of a business enter-\\nprise as the man who had a hundred shares. In other\\nwords, they assumed that human beings are not only\\nequal in their rights and opportunities but also equal in\\ntheir industrial abilities. They believed that the acquisi-\\ntion and ownership of property is no sign of industrial\\nsuperiority. The result was that these concerns, which\\nwere at first among the best-appointed factories in Lan-\\ncashire, little by little dropped behind in the competition\\nwith regular capitalistic factories, through inferior man-\\nagement, internal quarrelings, and short terms of office\\nfor their managers and overseers, until, one after another,\\nin order to avoid bankruptcy, they had to be converted\\nfrom socialistic or cooperative factories into joint-stock\\ncorporations, and they are now successful enterprises.\\nThus far, any attempt on any considerable scale to con-\\nduct industry on the socialistic principle has resulted in\\nfailure and arrest of progress. This is not surprising,\\nbecause socialism attempts to reverse the whole course of\\nnatural progress by which every advantage in scientific", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0156.jp2"}, "157": {"fulltext": "SOCIALISM 147\\nwealth production, personal opportunities, religious free-\\ndom and democratic government, has been evolved.\\nProgress is a movement towards greater variety of hu-\\nman effort and complexity of methods, and any theory\\nwhich proposes to substitute collective paternalism for\\nindividual initiative, uniformity for diversity, is an effort\\nto retrace the steps of progress. In the nature of things\\nsuch an attempt must either fail in itself or else put so-\\nciety back. However plausible a theory may be, how-\\never attractive its promises, if it proposes to accomplish\\nits reforms by turning society backward to any earlier\\nand cruder forms of human institutions, it will prove a\\nblow to freedom and progress.\\n83. Effects on Individual Life Socialism, beyond\\nquestion, would have very deep and far-reaching effects\\non the development and quality of individual character,\\naside from its economic results. This phase of the sub-\\nject is too broad for proper discussion here, it involves\\nso much of psychology and sociology, but in general it\\nmay be said that any scheme which proposes to take all\\nelements of individual initiative, risk, enterprise and re-\\nsponsibility out of human society could only result in a\\nweakening of purpose, deadening of ambitious energy,\\nand general settling down to a monotonous routine of\\nappointed tasks. It would lead to a decay of that spirit\\nof personal independence, self-reliance, excellence, and\\nsense of responsibility, which develop strength, sound-\\nness and breadth of character. It would tend to remove\\nmost of the strongest influences which discipline, train\\nand develop the personal life and at the same time invest\\nit with variety, interest, deep significance and promise.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0157.jp2"}, "158": {"fulltext": "148 OUTLINES OF SOCIAL ECONOMICS\\nSUGGESTED READING.\\nIn Principles of Social Economics, Section III. of\\nChapter II., Part IV. This section is on The Function\\nof Government; or, The Controlling Principle in States-\\nmanship/ and points out the dividing line between the\\nclass of undertakings that should be carried on, or con-\\nditions regulated, by the government, and those that\\nshould be left to private enterprise and individual choice.\\nAdditional References. In Rae s Contemporary So-\\ncialism, Chapter XL, on the practical aspects of State\\nSocialism, pointing out how the various socialist propo-\\nsitions might be expected to work in practice.\\nIn Gunton s Wealth and Progress, Section III. ol\\nChapter I., Part III. This also deals with the short-\\ncomings of socialism in practice; it is entitled: Inade-\\nquacy of Socialistic Methods.\\nIn George Harris s Inequality and Progress, Chap-\\nters I. to VIII. inclusive but the whole book of twenty\\nchapters might be read with great profit. It is a lucid,\\nphilosophical treatise, showing the impossibility of bring-\\ning about actual equality in any department of human\\nlife. Dr. Harris points out how in fact all the progress\\nof the race comes from inequality or variety, and how,\\nfrom the opportunities thus offered and responsibilities\\nimposed, the highest development is attained, of which\\nthe race is capable at any given time.\\nIn Henry Wood s Political Economy of Natural\\nLaw, Chapter XIII., on Socialism as a Political Sys-\\ntem. Mr. Wood here contrasts the effects of the so-\\ncialist proposition and the workings of natural law, on\\ncharacter and progress.\\nIn Graham s Socialism, New and Old, Chapter VI.,\\non The Distribution of Wealth, as proposed by so-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0158.jp2"}, "159": {"fulltext": "SOCIALISM 149\\ncialism, and Chapter XIII. on The Supposed Spon-\\ntaneous Tendencies to Socialism.\\nThe Ann Arbor address of Nicholas Murray Butler on\\nThe Education of Public Opinion, referred to and\\nquoted from in Chapter L, might well be read again for\\nthe contrast it draws between healthy individualism and\\nsocial uniformity.\\nEXTRACTS FROM READINGS.\\nWhat Equality Would Mean. Nature knows no\\nsuch thing as equality; it is a human invention thrown\\nup as an artificial barrier against selfishness and tyranny.\\nThe law of life is the development of the heterogeneous,\\nthe dissimilar, the unequal it tends away from the dull\\ninefficiency of uniform equality toward the high effective-\\nness of well-organized differences. Destroy inequality of\\ntalent and capacity, and life as we know it stops. De-\\nmocracy becomes unthinkable. The corner-stone of de-\\nmocracy is natural inequality, its ideal the selection of the\\nmost fit. Liberty is far more precious than equality, and\\nthe two are mutually destructive. If all the hills and\\nmountains of Europe were leveled off, it would result in\\nproducing a barren, dismal plain some nine hundred and\\nodd feet higher than the present shore line. The beauty\\nand productiveness of a continent would be gone. If all\\nthe wealth of the United States were divided equally\\namong the population, it is estimated that we should each\\npossess a capital of $1,100. Industry would be reduced\\nto the lowest level ever known in modern times, every-\\nthing which makes life agreeable would go out of it, and\\nwe should all be driven to a conflict and struggle for a\\nbare subsistence to which the state of primitive war de-\\nscribed by Hobbes would be as nothing. From address", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0159.jp2"}, "160": {"fulltext": "150 OUTLINES OF SOCIAL ECONOMICS\\nof Nicholas Murray Butler, at the University of Michi-\\ngan, June 22, 1899.\\nCoercion Under Socialism. Socialistic agitators des-\\ncant upon wage-slavery, but that is nothing compared\\nwith a coercion which would sweep away all liberty.\\nThe employer and, the vast majority of employers are\\nnot rich is a slave to the markets, as much as the wage-\\nearner to his toil, and often more, for he cannot so easily\\nchange his position. It would indeed be slavery to have\\neating, sleeping, clothing, working, and all the social and\\npersonal activities conducted upon the compulsory plan,\\nin which each is assigned his place by the majority,\\nwhich would really consist of a few official dictators.\\nThe blotting out of individual liberty would mean real\\nslavery. There would be no incentive for personal effort,\\nsuch as is now afforded by the hope of providing for in-\\nfirmity or old age, or for the wants of family and kin-\\ndred. The fruits of a man s industry would belong to\\nThe State. The choice of occupation would be dictated\\nby the office-holders of the- dominant party. From\\nHenry Wood s Political Economy of Natural Law,\\nChapter XIII.\\nDefects of State Management of Industry. What are\\nthe conditions of efficient state administration? The\\nstate possesses several natural characteristics which give\\nit a decided advantage as an industrial manager, some for\\none branch of work, some for another. It has stability, it\\nhas permanency, and it has what is perhaps its principal\\nindustrial superiority unrivalled power of securing unity\\nof administration, since it is the only agency that can\\nuse force for the purpose. On the other hand, it has one\\ngreat natural defect, its want of a personal stake in the\\nproduce of the business it conducts, its want of that keen\\ncheck on waste and that pushing incentive to exertion", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0160.jp2"}, "161": {"fulltext": "SOCIALISM 151\\nwhich private undertakings enjoy in the eye and energy\\nof the master. This is the great taproot from which all\\nthe usual faults of government management spring its\\nroutine, red-tape spirit, its sluggishness in noting changes\\nin the market, in adapting itself to changes in the public\\ntaste, and in introducing improved methods of produc-\\ntion. Government servants may very generally be men\\nof a higher stamp and training than the servants of a\\nprivate company, but they are proverbial, on the one\\nhand, for a certain lofty disdain of the humble but val-\\nuable virtue of parsimony, and, on the other, for an un-\\nprogressive, unenterprising, uninventive administration\\nof business.\\nNow, the branches of industry which the state is fitted\\nto carry on are of course those in which its great fault\\nhappens to have small scope for play, and in which its\\ngreat merit or merits have great scope for play; those,\\nfor example, which gain largely in efficiency or economy\\nby a centralized administration, and suffer little harm\\ncomparatively from a routine one. That is the reason\\ngovernments always manage the postal service well. In\\npost-office work the specific industrial superiority, of gov-\\nernment carries its maximum of advantage, and its speci-\\nfic industrial defect does its minimum of injury. The\\ncarrying and delivery of letters from one part of the em-\\npire to another require, for efficiency, a single co-ordina-\\nted system, and, on the other hand, those operations them-\\nselves are of so unvariable and routine a character that\\nlittle harm is done by their being carried on in a routine\\nspirit; they involve so little capital expenditure the en-\\ntire capital of the department in England is only \u00c2\u00a380,000\\nthat the opportunity for waste and corruption is slight\\nand being conducted much more largely under the public\\neye than the affairs of other departments of state, they", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0161.jp2"}, "162": {"fulltext": "152 OUTLINES OF SOCIAL ECONOMICS\\nare consequently subject to the constant and interested\\ncriticism of the people whose wants they are meant to\\nsatisfy. The same reason explains why government\\ndockyards and arms factories are always managed so un-\\nsatisfactorily. There is, on the one hand, no need in them\\nfor any higher unity of administration than is wanted\\nin any ordinary single business establishment; but, on\\nthe other, progressiveness and adaptability are of the first\\nmoment, routine and obstruction to improvement being\\nindeed among their worst dangers. Then the risk of\\nprodigality and corruption is high, for their capital ex-\\npenditure is great, and the check of public criticism very\\ndistant and ineffectual. So exceptional a business is the\\npost, that the telegraphs, though managed by the same\\ndepartment, have never been managed with the same suc-\\ncess. They were bought at first at a ransom, they have\\ninvolved an increasing loss nearly ever since, and the\\npublic have to pay practically as much for their telegrams\\nperhaps more than the public of the United States\\npay to their telegraph companies. Even in the postal de-\\npartment, government administration shows the usual\\nofficial slowness in adopting much-needed and even lucra-\\ntive reforms. Of this, a good example occurred only the\\nother day. It was not until a Boys Messenger Company\\nwas already in the field and doing the work that the post-\\nmaster-general was brought to recognize, as he said, the\\ndesirability of providing a more rapid means of trans-\\nmitting single letters for short distances and under special\\ncircumstances than at present exists. From Rae s\\nContemporary Socialism, Chapter XL, Section IV.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. What are some of the benefits promised by socialism?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0162.jp2"}, "163": {"fulltext": "SOCIALISM 153\\n2. Mention two of the best known descriptions of an imaginary\\nideal socialistic society.\\n3. In considering remedies for poverty and other social ills,\\nwhat great facts about human progress should be re-\\nmembered?\\n4. In the light of these facts, what question ought we to ask\\nourselves as to the best and safest methods of further ad-\\nvancement?\\n5. Explain the difference between socialism, communism and\\nanarchism.\\n6. What system of production does socialism propose? Men-\\ntion some of the differences in details advocated by dif-\\nferent groups of socialists.\\n7. What are some of the methods by which socialists hope to\\nsee their system established?\\n8. What is true of the comparative civilization of countries with\\ndifferent degrees of paternalism in their government?\\nGive instances.\\n9. What would be the effect of substituting elected officials\\nfor private management of industries?\\n10. Why does popular election almost always result in the\\nchoice of mediocre men?\\nn. Mention some of the experiments in socialistic community\\nlife that have been made; what has been the result, and\\nwhy?\\n12. Describe the great experiment in manufacturing coopera-\\ntion in England, and explain the outcome.\\n13. In what chief respect is socialism contrary to the natural\\nlaw of progress?\\n14. What would probably be some of the effects of socialism\\non individual character?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0163.jp2"}, "164": {"fulltext": "CHAPTER XIX.\\nTHE SINGLE TAX.\\n84. The SingIe=Tax Theory. To put a single tax\\non land, equal to its economic rent, and abolish all other\\nforms of taxation, is a scheme of social reform pro-\\npounded by Mr. Henry George in his Progress and Pov-\\nerty. It is advocated as one of those comprehensive re-\\nforms which will solve every phase of industrial and so-\\ncial injustice and hardship. On the score of simplicity it\\nleaves little to be desired. It is probably the simplest\\nscheme for solving the ills of society that was ever pro-\\npounded. It is much simpler than socialism. It does not\\npropose that the government shall take possession of and\\noperate all the industries of the country. The single-tax\\nplan proposes to abolish poverty and injustice by im-\\nposing a single tax upon land, to the full extent of the\\neconomic rent derived from it. The basis of this doctrine\\nis that God gave the earth to all the human race, and\\ntherefore individual ownership of any part of the earth s\\nsurface is a violation of God s moral law. It is held to\\nbe robbery, because it is taking for individual benefit\\nwhat the Creator gave to everybody.\\n85. Its Fundamental Error. The great error in\\nthis proposition is that it assumes the value of land to be\\na part of its original condition. This is a mistake. In\\nits original state land had no value. Value comes only\\nwhen the land is utilized for human purposes, which al-\\nways means that effort is bestowed upon it. Nature sup-\\ni54", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0164.jp2"}, "165": {"fulltext": "THE SINGLE TAX 155\\nplies the substance but man supplies the value. There was\\njust as much land in this country when the Pilgrims came\\nas there is now, but it had no value. When the Indians\\nwere roaming over the country, the iron and coal and\\ngold and silver in our mountains was all there, but it had\\nno value. The value came only when labor and capital\\nwere applied to appropriate it. Of course, man did not\\ncreate land, neither does he create wool or iron. He\\ntends the sheep and nature grows the wool. He clips\\nthe wool, washes it and manufactures it, and it is the\\nclipping, washing and manufacturing, together with the\\nexpense of raising the sheep, that gives the wool its value.\\n86. How Land Values Are Determined. But, in\\nconsidering the value of particular pieces of land, we find\\nthere is a great deal of productive land that has a high\\nvalue, but upon which the expenditure has been small,\\ncompared with its value, while other land requiring pro-\\nportionately larger expense to utilize it has a low value.\\nThis is strictly in accordance with the general law of\\nvalue; the law of land values, indeed, is simply a deduc-\\ntion from or continuation of the law of rent. Rent arises\\non any given piece of land used in production in propor-\\ntion to the surplus which it will yield over and above\\nthat derived from the least productive land whose prod-\\nucts compete in the same market. The value of the piece\\nof land itself is reflected from its earning power it will\\nbe high or low according as this rent or surplus-yielding\\ncapacity is large or small. In other words, the value of\\na piece of land used in agriculture or any form of indus-\\ntry depends upon its profitableness as compared with its\\npoorest or dearest competitors. Some land is so barren\\nor so far from a market that it cannot be made to pay\\nthe expenses of any kind of productive effort applied to\\nit such land yields no rent and has no value, unless it be", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0165.jp2"}, "166": {"fulltext": "156 OUTLINES OF SOCIAL ECONOMICS\\na speculative value due to anticipated profitableness.\\nOther land, more fertile or nearer to markets or offer-\\ning superior business advantages, will yield a surplus,\\nand hence will have a value in proportion to this surplus\\nderived from it and this surplus arises only because the\\nprice of its products is determined by the cost of produc-\\ntion on the poorest or dearest land competing with it. It\\nis for exactly the same reason that some manufacturing\\nplants are much more valuable than others, because they\\ncan be operated at less relative cost and so will yield a\\nlarger profit.\\nLand used for residence purposes is really in the group\\nof commodities it is not an instrument of production.\\nProductive land is what the single-tax proposition chiefly\\nattacks, although the theory includes all kinds of land.\\nResidence property is judged, not by the wealth that can\\nbe derived from it, but by its convenience, beauty of sit-\\nuation and general social desirability. Its value is deter-\\nmined by the same law that fixes the prices of commodi-\\nties. Plots of land of equal residential utility, conve-\\nnience, etc., are like so many hats they are all alike, and\\ntend to be uniform in price. That price, whatever it is,\\nis determined just as in the case of hats by the cost of\\nproduction of the dearest portion for which there is a\\nmarket demand. In the case of land, cost of production\\nmeans cost of developing, advertising, improving, making\\naccessible by streets, supplying water and drainage, and a\\nscore of expense items. The owners of a certain portion\\nof the plots of any given class, judged as residence prop-\\nerty, find that these costs, including loss from unsold\\nportions, etc., are greater than in the case of any of their\\ncompetitors. They, therefore, will resist any competitive\\neffort to force the price of the plots below a point that\\nwill at least repay their investment; sometimes they will", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0166.jp2"}, "167": {"fulltext": "THE SINGLE TAX 157\\nhold land for years rather than sell at a loss. This tends\\nto establish the general line of value for residence prop-\\nerty of that same class, and the other landowners will\\nrate their property, or offer it for sale, at approximately\\nthe same price. Some, of course, for the sake of quick\\nreturns, will sell their holdings for less, but this seldom\\naffects what is recognized as the actual value of that class\\nof property, so long as the dearer portions are also in\\ndemand. The great differences in the value of different\\nkinds of residence property are due simply to the fact\\nthat they belong in different groups, differing in residen-\\ntial utility, just as caps, derby s and silk hats differ in so-\\ncial utility. In each separate group, however, the price\\nfor all is determined by the cost of supplying the dearest\\nportion.\\n87- Cost Goes With Value. Therefore, it is not\\ntrue that the value of land, either for production or resi-\\ndence, is a free contribution of nature. It would have no\\nvalue at all if human effort were not exerted to utilize it,\\nmake it accessible and available, and, in the case of pro-\\nductive land, to conduct industry upon it. Almost inva-\\nriably, the most valuable land is that on which the largest\\nactual amounts of effort and capital have been expended\\nto give it its superior productivity, and which costs the\\nmost in gross amount, though of course less relatively,\\nto maintain it; for example, the lots on Broadway in\\nNew York city. All that has ever been expended on har-\\nbor and transportation facilities, on street improvements,\\non water and light supply, on fire protection, on all the\\nphases of city government for which land taxes have been\\nexacted, not to mention the expense of the buildings\\nerected on these lots, have been items of cost, contribu-\\nting directly and indirectly to the earning power of the\\nland and hence contributing to its value. Therefore, so", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0167.jp2"}, "168": {"fulltext": "158 OUTLINES OF SOCIAL ECONOMICS\\nfar from land value being a free gift, the almost universal\\nrule is that the greater the earning power, and hence\\nvalue, of land, the greater has been the expenditure of\\nlabor and capital, directly and indirectly, upon it, and the\\ngreater is the cost, in taxes, assessments, improvements,\\netc., of continuously utilizing and maintaining it.\\n88. Rent Does Not Absorb AH Economic Gain.\\nIt is asserted by advocates of the single tax that because\\nrent of land apparently tends to increase, therefore rent\\nabsorbs all the gain in wealth production. This is a com-\\nplete mistake. The rent of a piece of land used in pro-\\nduction increases only when and because that land be-\\ncomes more productive, yielding not merely enough to\\npay the higher rent but also a surplus to the user of the\\nproperty. Where rent is rising rapidly it is the best of\\nevidence that the wealth-producing capacity of the land is\\nrising still more rapidly. If rent absorbed all the gain,\\neverybody would prefer to hire cheaper property, by\\nusing which the same profits could be earned without the\\nrisk of a high rent investment. In reality, it is the high-\\nest-rent properties that are most eagerly sought for, by\\nthose who have sufficiently large enterprises to conduct,\\nbecause the profits that can be made by using such prop-\\nerty are so much greater, even after paying the high rent,\\nthan could be realized in other and lower-rent situations.\\nFor example, the cities are the places of highest rents,\\nand they are also the places of the largest surpluses of\\nwealth produced over and above the rents. On Wall\\nStreet and lower Broadway rents are very high, but it is\\njust there that business is most profitable. So far from\\nrent absorbing the whole gain in production, it really\\nrepresents, in all probability, a diminishing relative pro-\\nportion of the total wealth produced, just as truly as in-\\nterest on capital to-day represents a diminishing relative", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0168.jp2"}, "169": {"fulltext": "THE SINGLE TAX 1 59\\nproportion of the earnings of industry. Interest rates\\nare slowly falling, and rent, while nominally increasing\\nin many quarters, is actually not increasing, but prob-\\nably decreasing, :in proportion to earning power.\\nIt should be remembered, moreover, that rents in some\\nlocalities and sections are always falling while elsewhere\\nthey are rising. In the same city, even, some property is\\nalmost always declining in value while other property is\\nincreasing, according to changes in the drift of business,\\ntrade and residence. When rents were rising on the rich\\nfarms of the Northwest they were declining on the hill\\nfarms of New England, and some landlords were losing\\nwhile others were gaining. It is not true, therefore, that\\nland is a natural monopoly, constantly and everywhere in-\\ncreasing in value, and absorbing an increasing portion of\\nthe products of industry. There is no so-called landlord\\nclass, in this country at least, for land is constantly\\nchanging ownership. It is simply one form of invest-\\nment, judged by comparison with the opportunities in\\nmanufacturing, mercantile and all other industries. If\\nany particular land is exceptionally productive, whoever\\nbuys it must pay a proportionately high price for it, so\\nthat the return he receives in rent is not materially dif-\\nferent from what he would have received by putting out\\nthe same amount of money at interest. In fact, the price\\nof land tends to rise or fall according as the rate of rent\\nincome on it becomes greater or less than the normal rate\\nof interest on capital.\\n89. Single-Tax Would Be Robbery. Land in this\\ncountry changes ownership so often that by far the larger\\npart of it is owned by persons who have bought and paid\\nfor it at its full value within, say, a generation. To them\\nit represents actual cost, money, savings or whatever, in-\\nvested in this land; while families that have held land", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0169.jp2"}, "170": {"fulltext": "l6o OUTLINES OF SOCIAL ECONOMICS\\nfor several generations have as a rule expended, first\\nand last, considerable sums in improving and increasing\\nits productive capacity or residential desirability. To tax\\naway the full value of land, therefore, as the single-tax\\nproposition demands, would be sheer robbery and would\\nnever be tolerated by a free people. The government that\\nshould attempt such an act of despotism would be swept\\naway by revolution before it could begin to enforce it.\\n90. It Could Not Abolish Poverty. The claim that\\nthe single tax would abolish poverty must be considered\\na delusion. If all the value of land were confiscated by\\na tax, nobody would care to own any, and land would\\nthen be taken by the state and become its property. So\\nfar as land is concerned, this would be socialism, but in\\nwhat way would it affect poverty Who would get more\\nif the state owned the land than at present? If the state\\nowned the land it would become the landlord, and who-\\never used it would merely have to pay rent to the state in-\\nstead of to private owners. The rent exacted by the state\\nwould be governed by the same law as now, because it\\ncould not be governed by any other. If the state de-\\nmanded equal rent for all kinds of land, good or bad, near\\nor far from markets, it simply could not get it. Nobody\\nwould hire any land except that which would yield more\\nthan the cost of using it. Nobody would pay rent for\\nland so barren or far away that it took all the profits to\\npay the rent, whether the state owned it or anybody else.\\nEven the state cannot make people continuously do busi-\\nness at a loss. The same different degrees of utility\\nwould exist in the land that exist now, and that would\\ngovern the rent anybody would pay for its use. There-\\nfore, rents would either have to be the same as now, or\\nthe state, by trying to fix uniform rents, would have\\nthe larger part of the land left idle on its hands and the", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0170.jp2"}, "171": {"fulltext": "THE^SINGLE TAX l6l\\nrest earning enormous profits for the fortunate occupiers.\\nThere is one primary condition without which nobody\\nwill use land, whether for building, agriculture, or any\\nother purpose; and that is, a demand or market for the\\nproducts. The single tax, therefore, could not compel\\npeople to use land which they were holding for specula-\\ntive purposes. If there were not a sufficiently profitable\\nopportunity for using the land, the owner would sur-\\nrender it to the government rather than lose money by\\ntrying to conduct an industry upon it while paying the\\ngovernment s assessed tax of the full rental value. The\\ngovernment could not force industries into existence in\\nany such way, because that is a matter governed entirely\\nby the market opportunities.\\nNor could the single tax do anything towards abolish-\\ning poverty by lowering prices to the consumers. Prod-\\nucts would not be cheapened by the fact that the state\\ntook all the rent, because prices would still be determined\\nby the cost of production on the dearest land, as at pres-\\nent. It would cost just as much to utilize the poor or\\nbadly situated land for any given purpose then as it does\\nnow. The cost of production, therefore, would be the\\nsame the cost of the dearest portion would be the same,\\nand hence prices would be the same.\\nReal wages would not be increased by the single tax.\\nRent would have to be paid just as now, to the state as\\na tax, instead of to private landlords as rent, and, as we\\nhave just seen, the tax could not force industries into\\nexistence and so increase employment for labor. The\\nonly thing that the single tax would really accomplish is\\nto establish government ownership of land. This would\\nbe a disadvantage, because the state is never as efficient\\nin the use of any productive instrument as is private en\\nterprise. This would neither increase the use of land, re-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0171.jp2"}, "172": {"fulltext": "l62 OUTLINES OF SOCIAL ECONOMICS\\nduce the price of products from the land, give a single\\nadditional laborer a day s work on land, nor do anything\\nwhatever to raise wages. The single tax is based on a\\nfalse assumption. It will produce none of the results\\npredicted for it, because it does not affect the economic\\nconditions out of which these results arise. As a means\\nof raising revenue, a tax on real property is far superior\\nto any form of taxes on incomes and personal property,\\nor any method of direct taxation, but a revenue tax\\nshould be levied only as required to meet government ex-\\npenses or for public improvements, not for the purpose\\nof confiscating private property regardless of the amount\\nof revenue required. Instead of being a means of estab-\\nlishing justice, the single tax would be nothing less than\\nlegalized robbery. As a means of abolishing poverty it\\nis a delusion.\\nSUGGESTED READING.\\nIn Principles of Social Economics/ Section IV. of\\nChapter IV., Part III. This section discusses the ques-\\ntion: Is Rent a Social Tax? 7 and has already been sug-\\ngested in connection with the chapter on Rent.\\nAdditional References. In Gunton s Wealth and\\nProgress, Section III. of Chapter I., Part II., on Henry\\nGeorge s Theory of wages.\\nIn Hadley s Economics, Sections 521 to 524 inclu-\\nsive, in Chapter XIV. This chapter is on Government\\nRevenue, and the sections mentioned point out some of\\nthe economic and moral defects of the single-tax\\nproposition.\\nIn Seligman s Essays on Taxation, Chapter III., on\\nThe Single Tax.\\nIn Francis A. Walker s Land and Its Rent, Chapter\\nIII., on Recent Attacks Upon Landed Property.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0172.jp2"}, "173": {"fulltext": "THE SINGLE TAX 1 6\\nThe pamphlet, Economic Heresies of Henry George,\\nby George Gunton, is also recommended.\\nFor a complete statement of the single-tax doctrine\\nsee Henry George s Progress and Poverty.\\nEXTRACTS FROM READINGS.\\nNo Sudden Millennium Possible. It is clearly impos-\\nsible to discuss in this place the wider claim of the single-\\ntaxers, that the application of their scheme would intro-\\nduce the social millennium. If economists thought that\\nthe distinguished single-tax leader had solved this prob-\\nlem they would enthrone him high on their council seats\\nthey would reverently bend the knee and acknowledge in\\nhim a master, a prophet. But when he comes to them\\nwith a tale that is as old as the hills when he sets forth\\nin his writings doctrines that have long since been re-\\nfuted; when in his enthusiasm he seeks to impose a\\nremedy which appears to them as unjust as it is one-\\nsided, as inconsistent as it is inequitable, they have a\\nright to protest. This is not the first time that some en-\\nthusiast has supposed that he has discovered a world-\\nsaving panacea. The remedy for social maladjustments\\ndoes not lie in any such lop-sided idea; the only cure is\\nthe slow, gradual evolution of the moral conscience ot\\nmankind. We cannot solve the labor problem by any rule\\nof thumb. Every student of history, of political philoso-\\nphy, of economics, will tell us that the progress of the\\nrace has been slow and painful that the world has ad-\\nvanced step by step and that each successive step, to be\\nenduring, must be founded on justice. To suppose for a\\nmoment that the social millennium will be ushered in by\\nany one sudden change even were the change not so\\nlamentably inadequate as the one above discussed is an", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0173.jp2"}, "174": {"fulltext": "164 OUTLINES OFJSOCIAL ECONOMICS\\nevidence not of wisdom, but of short-sightedness.\\nFrom Seligman s Essays on Taxation, Chapter III.\\nA One-Sided Proposition. Now it is evident, beyond\\nchallenge or question by any honest man, that in a read-\\njustment of the relations of land, made primarily to meet\\nthe demands of political equity, the state, if it will claim\\nthe benefit of all gain resulting from general causes af-\\nfecting the numbers and productive power of the com-\\nmunity, and thus due neither to the merits nor to the\\nsacrifices of owners, is bound to make good all losses re-\\nsulting from a decline of demand due to causes which are\\nof a general nature, and are thus attributable to no fault\\nor neglect on the part of owners. If he who remains, in\\nname, the proprietor of land is not to be allowed to reap\\nany gain not brought about by his own exertions, he has\\na good claim to be saved harmless from loss which no\\neffort of his could have averted. From Walker s Land\\nand Its Rent, Chapter III.\\nFallacies in Single-Tax Theory. In contradiction,\\nthen, of Mr. George s proposition that the entire effect of\\nan increase of production is expended in raising rents,\\nneither wages nor the interest of capital deriving any gain\\nwhatsoever therefrom, rent indeed absorbing the entire\\ngain, and more than the gain, we have seen,\\ni. That an increase of production may enhance the\\ndemand for labor equally with the demand for land.\\n2. That, in fact, in those forms of production which\\nespecially characterize modern society, the rate of en-\\nhancement of the demand for labor tends to far exceed\\nthe rate of enhancement of the demand for land.\\n3. That an increased demand for the production of\\nwealth may, and in a vast body of instances does, enhance\\nthe demand for labor without enhancing the demand for\\nland in any, the slightest degree, the whole effect being", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0174.jp2"}, "175": {"fulltext": "THE SINGLE TAX 165\\nexpended in the elaboration of the same amount of ma-\\nterial.\\n4. We have now only to show, in the fourth place,\\nthat, instead of all improvements and inventions increas-\\ning the demand for land, as Mr. George declares, some\\nvery extensive classes of improvements and inventions ac-\\ntually operate powerfully, directly, and exclusively in\\nreducing the demand for land, we have, I say, only to\\nshow this, to convict this would-be apostle of a new po-\\nlitical economy and a regenerated humanity, jof the\\ngrossest incompetence for economic reasoning. This it\\nwill be easy to do. From Walker s Land and Its\\nRent, Chapter III.\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. What is the single-tax proposition? What does it promise?\\n2. On what theory of land value is it based?\\n3. How is the value of productive land really determined?\\n4. How is the value of land used for residence purposes de-\\ntermined?\\n5. What are some of the elements of cost in utilizing land?\\nOn what kind of land are these items actually, though\\nnot relatively, largest?\\n6. Does rent absorb all the gain in wealth production? Does\\nit take an increasing or relatively decreasing portion?\\nIllustrate.\\n7. Is all land increasing in value? Is there any permanent\\nlandlord class? Give reasons for answer.\\n8. What great injustice would the single tax inflict?\\n9. Would the single tax make land free to all comers? If\\nnot, what system of rent charges would the state as land-\\nlord have to adopt?\\nto. Could the single tax force unused land into use? Give\\nreasons for your answer.\\n11. What effect would it have on wages and employment? Why?\\n12. What effect would it have on prices of commodities? Why?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0175.jp2"}, "176": {"fulltext": "CHAPTER XX.\\nCOOPERATION AND PROFIT-SHARING.\\n91. What Cooperation Is. Cooperation and profit-\\nsharing are propositions for industrial reform, aiming at\\na better distribution of wealth. Cooperation is a form of\\nsocialism, though not of a political character. It is a\\nvoluntary effort to conduct specific industries on the\\nstrictly democratic plan.\\nHundreds of cooperative experiments have been made,\\nduring the last half century and more. Cooperation dif-\\nfers from socialism in that socialism aims to have the\\ngovernment own and conduct all productive industry,\\nwhile cooperation relies on voluntary, association and\\ndivides the results according to the amount of stock held,\\nwhile the management is by majority vote of the stock-\\nholders as individuals.\\n92. Difference Between Cooperation and Corpora=\\ntions. Sometimes we hear people speak of corporations\\nas a form of cooperation. That is a distortion of the\\nterm. The difference is very great. Corporations are\\nchartered companies in which, not only the profits are\\ndivided according to the number of shares held, but the\\nmanagement also goes with the ownership of the capital.\\nIf one man owns more than half he can have absolute\\nmanagement of the corporation, because by majority\\nvote he can elect all the directors and dictate the entire\\npolicy. With cooperation the case is quite different.\\nThe profits, to be sure, are divided according to the capi\\n166", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0176.jp2"}, "177": {"fulltext": "COOPERATION AND PROFIT-SHARING 1 67\\ntal, whatever that may be, and the owner of the largest\\namount of stock in a cooperative concern will therefore\\nget the largest share of the dividends. But when it\\ncomes to the management the case is quite different.\\nThis, under cooperation, is thoroughly democratic. It\\nassumes that one man knows just as much as another,\\nwhich of course is not true.\\n93. History of Productive Cooperation. Modern\\ncooperative experiments came into existence about the\\nmiddle of this century. The movement was the historic\\nsuccessor of the chartist movement in England. It grew\\nout of the ruins of the Fergus O Connor land-ownership\\nscheme for poor people, which finally collapsed in 1848.\\nUnder the leadership of a few of the former followers\\nof the Owenite movement and the radical chartists, co-\\noperative experiments were made. These took two dif-\\nferent directions, one in productive enterprise, like manu-\\nfactures, and the other in mercantile or, as they call it,\\ndistributive enterprises. The history of these two lines\\nof experimenting is very instructive and throws much\\nlight on the character and possibility of industrial co-\\noperation.\\nThe first efforts were in manufacturing, and for a time\\nthey seemed very promising. The experiments were\\nquite successful until they reached the stage of being\\nwhat we may call established industries, when they came\\ninto steady competition with non-cooperative enterprises.\\nUnder the enthusiasm of the cooperative idea, the ex-\\nperiments extended through the greater part of Lan-\\ncashire. Some of the largest cotton factories were built\\nand equipped on the purely cooperative plan, and many\\npeople who did not believe in cooperation invested in\\nthem. But a quarter of a century saw the collapse of\\nthe entire cooperative experiment in productive industry.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0177.jp2"}, "178": {"fulltext": "l68 OUTLINES OF SOCIAL ECONOMICS\\nDemocracy of management did what it nearly always\\ndoes at the convention and ballot-box in politics it se-\\nlected the superficial faultfinder, the popular sentimental-\\nist, and rejected the hard-headed and efficient business\\nmanager. The outcome was that to prevent bankruptcy\\nand ruin one concern after another was converted into a\\nregular joint-stock corporation. The cooperative ele-\\nment was dropped, and now the concerns are as success-\\nful as their average competitors. In other words, the\\nexperiment proved that in productive enterprise on any\\nconsiderable scale, where the industry is complex and\\nrequires special skill and expert management, coopera-\\ntion was an unqualified failure.\\n04. Success of Mercantile Cooperation. In mer-\\ncantile enterprise, however, it has been a signal success.\\nIn conducting grocery and haberdashery and general sup-\\nply stores, the cooperative plan has worked well from the\\nfirst. Starting at about the same time that productive\\ncooperation did in England, and at the same place, while\\ncooperative manufacture has disappeared cooperative\\nstores have multiplied and become very large, being in\\nmany respects superior to private concerns. The local\\ncooperative stores have established wholesale stores\\nwhich they jointly own and through which they make\\ntheir purchases. They have their agents in different\\ncountries purchasing, on the best terms, supplies for all\\ntheir various departments.\\nWhat is the reason why the one kind of cooperation\\nfailed and the other has been such a marked success?\\nChiefly because productive cooperation requires expert\\ntalent, quick decision, inventive genius, and constant re-\\nsourceful adaptation to conditions, in its management,\\nwhile the other does not. The purchasing of materials,\\nchoice and operation of machinery, direction of experi-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0178.jp2"}, "179": {"fulltext": "COOPERATION AND PROFIT-SHARING 1 69\\nmerits, application of inventions, are necessary in manu-\\nfacturing without much waiting. Mediocre effort and\\nslow judgment, which the yearly or half-yearly meeting\\nof the cooperative concerns furnished, put the manage-\\nment to a disadvantage. In selling its products it had to\\ncompete with concerns guided by individual enterprise\\nand expert management. Clumsy methods, waste, and\\npoor management could not succeed against the highest\\ntype of individual effort. When a cooperative concern\\nfailed to make profits the manager would be removed at\\nthe next annual meeting, and the man who made the\\nstrongest speech against the management would proba-\\nbly be appointed, however little he might know about the\\nbusiness.\\nIn mercantile enterprises it was different. The man-\\nagers were selected by the same method, but they sold\\ngoods to their own members. They did not have to go\\ninto competition with other firms on prices. They fixed\\ntheir prices so as to cover their expenses, and coopera-\\ntive prices were often from ten to fifteen per cent, higher\\nthan the prices of private concerns. But this secured the\\nenterprise against loss and always insured a dividend, be-\\ncause prices could always be put to a point where they\\nwould yield a dividend at the end of the quarter. This\\nwas a seeming net gain to the members of the coopera-\\ntive associations. At any rate, it acted as an automatic\\nsavings institution. It was the rule of the cooperative\\nstores to compel the members to leave their dividends\\nuntil they acquired a share in the business, of a certain\\namount, upon which they would always receive interest.\\nIn this way the stores never failed, and they gradually\\ngrew from grocery stores into large department stores,\\nsupplying everything from bread and butter to the mi-\\nnute furnishing of a home, and later even providing", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0179.jp2"}, "180": {"fulltext": "I/O OUTLINES OF SOCIAL ECONOMICS\\nhouses on the installment plan. Being free from com-\\npetition on prices their permanence was secured, and\\nestablishing their own wholesale stores yielded a great\\neconomy in business.\\nThis distributive cooperation in England also had so-\\ncial and educational features. They erected their own\\nbuildings and in each one would usually have a lecture-\\nhall free for all purposes of the association, a library, a\\nwell-appointed reading-room, and sometimes excellent\\ncourses of lectures. In this way they conducted, as a\\npart of the expense of the business, an educational work\\nwhich was very beneficial and has been a great factor\\nin the intellectual and social improvement of the people.\\nThe secret of the success of this phase of cooperation\\nis that it does not have to be on its merits as an economic\\nproposition. The owners of each store are themselves the\\npurchasers of its products. The stores buy their goods\\nin open market and sell to their own members. When it\\nhas been attempted, as under productive cooperation, to\\nproduce by the members and sell in the open market it\\nhas failed. Moreover, conducting a mercantile business\\nis a much less complex matter than operating highly-de-\\nveloped manufacture. Being free from competition as\\nto prices, cooperative stores succeed with mediocre tal-\\nent. This indicates that cooperation on a purely demo-\\ncratic basis can succeed only in lines of industry where\\nthe methods are relatively permanent and simple, and not\\nsubject to the revolutions which invention and expert\\nmanagement by competitors may create. Where the\\nundertaking is subject to competition with private con-\\ncerns, and the methods are complex and subject to sud-\\nden changes by the introduction of new methods, then\\nmediocre management by popular election on the co-\\noperative plan is in great danger of failure.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0180.jp2"}, "181": {"fulltext": "COOPERATION AND PROFIT-SHARING 171\\n95. Profit=Sharing. Profit-sharing is quite distinct\\nfrom cooperation. It is a system of distributing a part\\nof the profits of an industry among the employees, but\\nkeeping the control and management in the hands of the\\ncapitalist. In other words, it is cooperation in results,\\nbut not in responsibility and management. The difficulty\\nwith profit-sharing is that it is entirely dependent upon\\nprofit-making. It can never be a universal plan of dis-\\ntribution, because all concerns do not make profits.\\nProfits can only be shared by the successful. More-\\nover, it depends largely upon the personal disposition of\\nthe employer. It must be voluntary with him, and so take\\nthe form, to some extent, of a gratuity. It is declared by\\nsome who have tried it that to distribute a certain portion\\nof the profits in this way yields better results and better\\nselection of laborers. But this is chiefly because only the\\nfew do it. If every concern divided profits among em-\\nployees -it would give no advantage in the selection of la-\\nborers, because they would get the same wherever they\\nwent. If profit-sharing were made compulsory on all\\nemployers it would become a part of the cost of produc-\\ntion for all the poorer and dearer concerns, and either\\nprices would have to be raised or wages would have to be\\nreduced so that what the men had received in wages could\\nbe given as profits. In fact, it is frequently the case in\\nprofit-sharing experiments that the laborers get no more\\nthan what they would receive in higher wages if they\\ncould not rely on this small extra income. The law of\\nthe standard of living operates to lessen the pressure\\nfrom workingmen for more wages, when their earnings\\nare pieced out by semi-gratuities in this way.\\nProfits cannot be relied upon. They differ in amount\\nwith almost every concern, and sometimes are missing\\nentirely. Therefore profit-sharing can never be a general", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0181.jp2"}, "182": {"fulltext": "172 OUTLINES OF SOCIAL ECONOMICS\\npolicy in the community. If a law were passed compell-\\ning all those who have profits to divide them among their\\nlaborers the probability is that capitalists would cease to\\nexperiment and invest with a view to making profits.\\nSuch a policy would stop the creation of profits, and\\ntherefore destroy the possibility of lowering prices, which\\nwould be an arrest of industrial progress. Profits are\\nthe stimulus to special and new risk-taking efforts. Any\\nsystem which distributed those profits, as such, among\\nother people would destroy the incentive for new creation\\nof wealth. By the natural economic method of distribu-\\ntion, profits do eventually go to the laborers and the com-\\nmunity, through lower prices, higher wages and taxation\\nfor public improvements, while allowing them to pass to\\nthe captalist long enough to furnish a constant stimulus\\nto industrial improvement.\\nMercantile cooperation, though not feasible as a uni-\\nversal method of conducting industry, has strong social\\nmerits. Where it can be successfully applied it may, as\\nin England, carry with it great socializing and educa-\\ntional opportunities, the influence of which is elevating\\nand stimulating, even though paid for sometimes in\\nhigher prices. But profit-sharing has nothing of this char-\\nacter to recommend it. It is not economic, it has no social\\nor educational aspect, but it has in it an element of philan-\\nthropy, which is not wholesome. Whatever is desired to\\nbe of permanent value in the distribution of wealth must\\nbe capable of universal application. Anything which de-\\npends on the sympathy or personal goodness of the em-\\nployer, and can only be granted by a part of the indus-\\ntries, cannot lead to any widespread social and industrial\\nreform.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0182.jp2"}, "183": {"fulltext": "COOPERATION AND PROFIT-SHARING 1 73\\nSUGGESTED READING.\\nIn Hadley s Economics, Chapter XII., on Coopera-\\ntion, which includes discussion of profit-sharing, pro-\\nducers and consumers cooperation, and government\\nmanagement of industry.\\nIn N. P. Gilman s A Dividend to Labor, Chapters I.\\nand II., discussing the general possibilities of coopera-\\ntive and profit-sharing experiments. In George Howell s\\nConflicts of Capital and Labor, Chapter XII., on\\nLabor and Capital in Alliance, describing and discuss-\\ning numerous experiments in cooperation and profit-\\nsharing, in a very friendly spirit but not overlooking\\nobvious defects.\\nIn David Schloss s Methods of Industrial Remunera-\\ntion, Chapters XVI. to XXIX., inclusive. These chap-\\nters take up the theory and practice of cooperation and\\nprofit-sharing quite at length, while the Appendix de-\\nscribes in detail a number of practical experiments.\\nEXTRACTS FROM READINGS.\\nRisk to Laborers of Profit-Sharing. Why tempt a\\nworking-man to gamble by staking part of the reward\\nof his labor upon the financial results of a business over\\nthe conduct of whose financial operations he is not al-\\nlowed to possess any control, and would, perhaps, sel-\\ndom be competent, even if he were allowed, to exercise\\nany useful control? To invest in this manner in the en-\\nterprise carried on by his employers is a risky thing for\\na working-man, even when the investment is of a tem-\\nporary nature only; that is, when the bonus is paid in\\ncash at the end of the year. But, where, as is often the\\ncase, a large part of the bonus is placed to the credit\\nof a Provident Fund, and, as such, becomes part of", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0183.jp2"}, "184": {"fulltext": "174 OUTLINES OF SOCIAL ECONOMICS\\nthe permanent capital of the business, there it is clear\\nthat a working-man, whose savings are locked up in an\\nunsecured investment of this nature, must, in very many\\ncases, run a grave risk of losing his money. Is the work-\\nman expected, before he accepts employment in a profit-\\nsharing firm, to make inquiries from his stock-brokers\\nor his bankers as to the standing of the concern and as\\nto the reputation for business ability possessed by its\\ndirectors? Or is he to chance it? We may well de-\\nmur to inviting working-men to hazard their earnings in\\nthis manner, whether for one year or for forty. From\\nSchloss s Methods of Industrial Remuneration, Chap-\\nter XXII.\\nSome Results of English Cooperation. The follow-\\ning is the account of the Sun Mill [England] given by\\nMiss Potter. In this instance workers were largely\\nshareholders, and at the outset a resolution was passed,\\ninsisting that shareholders and their families should be\\npreferred for employment. I am informed at\\nthe present day that few, if any, of its employees happen\\nto be shareholders. Profit-sharing with the principal\\nemployees was introduced in 1869; in 1875 it was dis-\\ncontinued. Mr. Marcroft* the historian of the\\nSun Mill, adds that the recipients of bonus had been re-\\nduced in their wages, and that on its discontinuance their\\nwages were raised 20 per cent. This mill, says Miss Pot-\\nter, serves as a type of the general history of cotton fac-\\ntories primarily established in the interests of the actual\\nworkers.\\nIn conclusion, the results of our examination of the\\npractice of Industrial Cooperation shows us that by far\\nthe greater part of Industrial Cooperation is carried on\\nupon the ordinary wage-system, the employees being\\naltogether excluded from participation in profits; while.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0184.jp2"}, "185": {"fulltext": "COOPERATION AND PROFIT-SHARING 1 75\\nthat in those cases in which profit-sharing is practised by\\nworking-men cooperators the financial position of the\\nworkmen employed in a cooperative workshop is sel-\\ndom indeed to any appreciable extent improved by the\\nreceipt of bonus, must be abundantly clear from the facts\\nand figures above adduced. From Schloss s Methods\\nof Industrial Remuneration, Chapter XXIV.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. What is meant by industrial cooperation?\\n2. What is the difference between cooperation and corpora-\\ntions?\\n3. What experiments in productive cooperation have been\\nmade in England and with what result?\\n4. Explain the reasons for the outcome of these undertakings.\\n5. What has been the experience with mercantile or distributive\\ncooperation? Describe some of the industrial and edu-\\ncational features of these concerns.\\n6. Why have they resulted so differently from productive co-\\noperation?\\n7. How does profit-sharing differ from cooperation?\\n8. Could profit-sharing ever be adopted as a universal system?\\nGive reasons.\\n9. What effect does profit-sharing tend to have on wages?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0185.jp2"}, "186": {"fulltext": "CHAPTER XXL\\nLABOR ORGANIZATIONS.\\n06. Objects of Trade Unions. Trade unions are vol-\\nuntary associations of workingmen, with the object of im-\\nproving the general conditions of their class. They are\\nvery different in character, object and methods from\\neither cooperation or profit-sharing. Trade unions are\\norganized not to overthrow or supersede the wages sys-\\ntem, but to better the laborers condition under it. They\\nrecognize the advantages of the wages system, and en-\\ndeavor to work through it to secure higher wages and\\nshorter hours and better conditions rather than to com-\\npel a distribution of profits as such. They are not based\\nupon any theory of socialism or radical rearrangement\\nof society, but recognize the fact that the capitalist owns\\nthe plant and the laborers own their labor, and the rela-\\ntion between them is one of buying and selling service,\\nand agreeing on the conditions of work.\\nHaving learned by experience that wages in any in-\\ndustry in any given district are substantially the same,\\nand when increased or diminished for one are in-\\ncreased or diminished for all in other words, that\\nwages are determined for the group and not for the\\nindividual the laborers have organized on the group\\nplan. They have learned that if they are treated as\\na group by employers it is better that they act as a\\ngroup for themselves. The object of trade unions is\\nprimarily to represent the interests of the workingmen\\n176", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0186.jp2"}, "187": {"fulltext": "LABOR ORGANIZATIONS 177\\nin the various industries, in respect to wages, hours of\\nlabor, treatment of employees and other working\\nconditions.\\nFor this reason trade unions have almost always\\navoided taking part as organizations in any political\\nmovement. Indeed, it is a by-law of nearly all the unions\\nin this country that discussion of politics shall be pro-\\nhibited in their meetings. In political matters they act as\\nindividuals. On matters of wages, trade conditions, any-\\nthing affecting their industrial life, they act as a unit.\\n97. Early Trade Unions. Trade unions arose in\\nEngland, for the same reason that nearly all modern in-\\nstitutions arose there, because from the fourteenth cen-\\ntury England had taken the lead in Europe in industrial\\nand political progress. The trade-union movement is the\\nnecessary outcome of the wages system, which is in-\\nseparable from capitalist methods of industry. As the\\ncapitalist system was earliest and most strongly devel-\\noped in England, it followed as a matter of course that\\ntrade unions had their rise in the same country. It is\\nsometimes said that trade unions arose out of the me-\\ndiaeval town gilds/ but there is little historic data to\\nsustain this view. The modern trade union has very lit-\\ntle in common with the mediaeval gild, which included in-\\ndependent craftsmen and had nothing to do with any dis-\\ntinct wage class. The trade union did not arise until the\\ngilds had disappeared. It is the product of the capitalist\\nindustry of the eighteenth and nineteenth centuries, and\\narose out of the conditions resulting from the factory\\nsystem.\\nDuring the early part of this century the efforts of\\nlaborers to organize, or even for three laborers to meet\\nin the same room to talk over their wages or other con-\\nditions, was treated as conspiracy. This restriction con-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0187.jp2"}, "188": {"fulltext": "178 OUTLINES OF SOCIAL ECONOMICS\\ntinued until 1824, when the conspiracy laws were abol-\\nished, but for a long time afterwards trade unions were\\nunder a social and quasi-legal ban. They were regarded as\\nrevolutionary, as infringing on the rights of private prop-\\nerty. The popular theory was that the employer had the\\nsole right to say what hours his people should work,\\nwhen begin and when stop, what wages should be paid,\\nand what sanitary and other conditions should exist. The\\nemployers ideas on all these points were narrow, often\\nactually inhuman. The excessive length of the working\\nday, the driving pressure of the boss, the unwholesome\\nconditions of the workshop and the degrading hovels in\\nwhich the laborers lived, were such as to destroy the\\nhealth and debase the social and moral life of the work-\\ning people. Numerous new diseases and types of de-\\nformity, contracted chests and curved spines, were de-\\nveloped. Against this the laborers organized, and at first,\\nvery naturally, they were scarcely less narrow and crude\\nin their ideas and methods of procedure than were their\\nemployers. They thought the only effective way to pro-\\nceed was to destroy the employers property, get up\\nstrikes, blow up factories, and if necessary maltreat or\\nkill any laborers who should attempt to take their places.\\nBut, while their methods were frequently brutal, their\\ncomplaints were genuine. This became too obvious to\\nbe overlooked by decent and humane people. Attempts\\nat reform began as early as 1825, and continued until a\\nwhole series of improvements in the laborers conditions\\nwere accomplished. Night work for women and chil-\\ndren was abolished, the working day shortened, school-\\ning provided for factory children (the half-time system\\nbeing introduced in 1844), until in 1847 tne general ten-\\nhour law was passed, and in 1874 the nine-and-a-half\\nhour law for textile industries.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0188.jp2"}, "189": {"fulltext": "LABOR ORGANIZATIONS IJq\\n98. How the English Factory Acts Were Passed.\\nThis great success of the trade unions in England, in\\nthe way of labor legislation, was due more largely to\\npolitical class feeling than to the efforts of the unions\\nthemselves. At that time a bitter struggle was going on in\\nEngland over the so-called corn laws, which imposed a\\nhigh tariff on the importation of wheat and breadstuff s.\\nThese laws, of course, were directly in the interest of the\\nlanded class, and were opposed by the manufacturers,\\nwho wanted cheap bread for the laborers, so that they\\ncould live on low wages.\\nThis manufacturing or middle class had already\\ngained largely in power through the extension of the\\nvoting franchise in 1832, and in 1839 they organized the\\nAnti-Corn-Law League. At the same time the work-\\ningmen were demanding shorter hours of labor, restric-\\ntion of child labor, and improvement in working condi-\\ntions, all of which the manufacturers opposed. Now the\\nlanded aristocracy were a cultivated class, inclined to be\\nhumane and considerate though very patronizing and\\npaternal. They were opposed to giving the laborers any\\npolitical power, but they never treated them like beasts\\nof burden. Being desperately opposed to the manufac-\\nturers crusade for repeal of the corn laws, the aristocracy\\nsided with the laborers in their demand for the factory\\nacts. Indeed, Lord Ashley, afterwards the Earl of\\nShaftesbury, became the real leader of the short-hour\\nmovement. In 1846 the manufacturers succeeded in get-\\nting the corn laws repealed, whereupon the landlords\\nunited in behalf of the laborers movement. The next\\nyear, 1847, partly out of human sympathy for the\\nlaborers, partly out of a sense of justice, but very largely\\nout of chagrin over the repeal of the corn laws, the land-\\nowners voted for the ten-hour law and carried it. Thus", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0189.jp2"}, "190": {"fulltext": "l8o OUTLINES OF SOCIAL ECONOMICS\\nin reality the great labor legislation of England was due\\nmore to the class war between the landowners and manu-\\nfacturers than to the united efforts of the laborers.\\n99. Trade Unions in the United States. In the\\nUnited States the first law limiting the hours of labor\\nwas adopted in Massachusetts in 1874, the same year that\\npractically the last important one was adopted in Eng-\\nland. This, however, does not mean that the English\\ntrade unions were superior either in intelligence or ac-\\ntivity. The factory system, and with it labor unions, be-\\ngan much earlier in England than in the United States.\\nIt had practically no existence in this country until about\\n1830, and took on no great importance until after the civil\\nwar. The trade-union movement here has grown up\\nunder conditions entirely different from those in Eng-\\nland. There was no class war outside of the labor ranks\\nto help American unions. They came into existence as\\nthe factory system developed, particularly in the cotton\\nand shoe industries in New England. The employing\\nclass here acted almost exactly as they had done thirty\\nyears earlier in England used the same arguments\\nagainst shortening the hours, made the same false pre-\\ndictions and the same silly threats. There was no landed\\nclass here to combine forces with the laborers, but the\\nlaborers in the United States had a power that the Eng-\\nlish laborers did not the ballot. They were a political\\nforce from the beginning. They had the right and they\\nhad the wisdom to unite on candidates for the legisla-\\ntures who were in favor of their cause, and thus, in a\\nmuch shorter time than in England, secured important\\nfactory legislation.\\nDuring the last twenty-five years the trade-union\\nmovement in this country has made great progress, and\\nreally shown a higher grade of economic intelligence than", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0190.jp2"}, "191": {"fulltext": "LABOR ORGANIZATIONS l8l\\nhas the movement in England. In England it has in a\\nconsiderable degree drifted away from strictly economic\\npurposes into the socialistic Fabian movement, known\\nas the new trade-unionism. It has turned its attention\\nto electing members of parliament, and with one or two\\nexceptions they cut sorry figures in the house of com-\\nmons. It may be said that to the extent that English\\ntrade-unionism has passed into semi-socialism it has de-\\ngenerated as an economic force. Thus far, American\\ntrade unions are distinct from any socialistic organiza-\\ntions. They are best represented by the American Feder-\\nation of Labor, which is a voluntary general association\\nof unions in all the principal industries of the country.\\nThey are strictly adhering to their economic purposes\\nand methods, eschewing both socialism and politics. In\\ntheir literature and lecture work they show a grade of\\neconomic intelligence quite superior to that of the Eng-\\nlish unions their discussion of economic problems, of\\nthe relation of labor to the public and to the employing\\nclass, has altogether a higher scientific character. Their\\nlatest proposition, to establish a trade-union college for\\nthe education of trade-unionists and preparation of\\nwriters and speakers as leaders of the labor movement,\\nwill, if carried out, be the most advanced step ever taken\\nby a labor organization in its own behalf. With every ad-\\nvance in this direction, greater intelligence, better infor-\\nmation and more rational conduct will prevail in indus-\\ntrial disputes, and the element of force will give place to\\nreason in adjusting labor differences and solving labor\\nproblems.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapter VII. of\\nPart IV. to the middle of page 423. This chapter is on", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0191.jp2"}, "192": {"fulltext": "1 82 OUTLINES OF SOCIAL ECONOMICS\\nCombination of Labor/ and the portion suggested deals\\nwith the place of labor organization in economic progress.\\nAdditional References. In Howell s Conflicts of Cap-\\nital and Labor, Chapters II., III. and XIV. Mr. Howell,\\nwho is a Fellow of the Statistical Society, England, is\\nvery favorable to labor organization, and these chapters\\ndeal with the origin, history, objects and government of\\ntrade unions, with a general review of their past and\\nforecast of their future.\\nIn Lujo Brentano s Relation of Labor to the Law of\\nTo-Day, Chapters VII., XL, XIV. and XV. of Book I.,\\ndiscussing the origin of unions, early laws against them,\\ntheir progress in England, and some of their objects and\\nmethods.\\nIn Carroll D. Wright s Industrial Evolution of the\\nUnited States, Chapters XVIII., XIX. and XX., of\\nPart III. These chapters describe the labor movement\\nin the United States, with a history of some of the great\\nlabor organizations, etc.\\nProbably the. most complete history of the rise of\\norganized labor is the History of Trade-Unionism,\\nby Sidney and Beatrice Webb; this will be found very\\nuseful, especially for reference.\\nEXTRACTS FROM READINGS.\\nWhat Trade Unions Have Done. It is not so much,\\nhowever, in specific performances that their [trade\\nunions] record of work is seen to the greatest advantage.\\nIt is rather in those unrecorded fields of labour, which\\nconstitute the every-day-life work of the unions, that they\\ndisplay their power, wield their influence, and achieve\\ntheir more permanent successes. The improved condi-\\ntion of the working- classes to-day is largely due to their\\nefforts. The improvement has been slow, terribly slow;", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0192.jp2"}, "193": {"fulltext": "LABOR ORGANIZATIONS 1 83\\nand it is not so apparent to the younger generation as to\\nthose whose age and experience take them back to the\\nforties and the fifties of the present century. The\\nprogress, nevertheless, has been real and substantial, in\\nmaterial advantages wages and hours of labor; in so-\\ncial position by the recognition of industrial rights in\\npolitical status by enfranchisement, and election to the\\nhighest posts open to popular election; in constitutional\\nrights and judicial obligation by the repeal of repressive\\nand disabling laws, and by the enactment of more just\\nand equitable enabling laws. Equality before the law is\\nnot only recognized as an abstract principle, but is em-\\nbodied in statutory enactment, not in its fullness, per-\\nhaps, but generally; and even in the administration of\\njustice the position of workmen has improved enor-\\nmously of late years. From Howell s Conflicts of\\nCapital and Labor, Chapter XIV.\\nUnions and Individual Workers. The whole indus-\\ntrial policy of the trades unions is calculated for the\\nmiddling stamp which everywhere predominates. What-\\never industrial efforts we find among them, the principle\\npermeating all these is the care that the great mass of\\nlaborers endowed with average capabilities may be able\\nto live from their labor, and in this, moreover, the trades\\nunions show themselves as the necessary supplement of\\npolitical economy built upon the foundation of perfect\\nfreedom. The same freedom which led the\\nhighly endowed to the unhindered development of their\\npowers, led that great mass of those standing in the\\nmiddle to confederation into trades unions. And whilst\\ntrades unions have not hindered the most skillful laborers\\nin obtaining the greatest possible advantage from their\\nspecial capabilities whilst, for example, the great mass\\nof superintendents and overseers in engineering, and the", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0193.jp2"}, "194": {"fulltext": "184 OUTLINES OF SOCIAL ECONOMICS\\ngreat number of administrators and directors at one time\\nor another have been members of the trades union of\\nengineers, indeed, belonged to their founders; whilst we\\nhave the express testimony of employers who were hos-\\ntile to the trades unions that their activity in no way di-\\nminished the number of laborers who have elevated\\nthemselves above their order, the trades unions have pre-\\nserved the mass endowed with average capabilities from\\nruin, and have educated up to that point a number of\\nlaborers who left to themselves would not have reached\\nthe middling class. From Brentano s Relation of\\nLabor to the Law of To-Day, Chapter XV., Book I.\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. What are trade unions? With what kind of matters do they\\nconcern themselves?\\n2. Why are they necessary under modern industrial conditions?\\n3. Describe the origin and early experience of trade unions.\\nAgainst what evils did they struggle?\\n4. How were the English factory acts secured?\\n5. Name some of the more important laws in behalf of labor\\nenacted in England.\\n6. When and where was the first law limiting the hours of labor\\npassed in the United States?\\n7. What power have American laborers possessed that English\\nlaborers did not, in obtaining factory legislation?\\n8. What is the present trend of English trade unions?\\n9. Along what lines are American trade unions working to-day?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0194.jp2"}, "195": {"fulltext": "CHAPTER XXII.\\nlabor organizations. (Continued.)\\nioo. Economic Character of Trade Unions. Of all\\nthe kinds of labor organizations, trade unions alone are\\nstrictly economic in character. Practically every other\\nform of labor association is more or less socialistic or\\npolitical. The trade union is organized strictly for the\\nindustrial and social improvement of the members of a\\nparticular trade or industry. The American Federation\\nof Labor organizes the trade groups or the different craft\\norganizations into one general body, but this federation\\nis only for cooperative purposes. Each union and each\\ngroup of unions in specific trades remains as distinctly\\ndevoted to its particular industry as if there were no\\nfederation.\\nThe purpose of the trade union is economic; that is,\\nit deals directly with industrial conditions, such as hours\\nof labor, wages, employment of women and children, and\\nother matters that relate to the workshop side of life.\\nThis is the real secret of the strength of trade unions.\\nThey have not ebbed and flowed like the socialistic and\\npolitical labor organizations. They have never been\\nstronger than they are now, with the public and the em-\\nployers. They began with being extremely unpopular\\nso unpopular that they were deemed conspiracies. But,\\nyear by year and decade by decade they have persisted.\\nNo amount of political condemnation, social ostracism or\\nmoral censure seems to have affected their growth. They\\n185", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0195.jp2"}, "196": {"fulltext": "1 86 OUTLINES OF SOCIAL ECONOMICS\\nencounter defeats, get under bad leadership, become the\\nvictims of political demagogues, and at times have seemed\\nto go to pieces under the exposure of fraud or the gross\\nmistakes of hotheaded, ignorant leadership. Neverthe-\\nless, while particular unions may go through this expe-\\nrience, it is never true of all unions in any trade, or of all\\ntrades in any country at a given time. It is very much\\nlike a backsliding deacon or vestryman, whose misbe-\\nhavior is a shock to the church, but they reorganize and\\ngo ahead. A necessary and useful organization seldom\\ndies from such a cause.\\nTrade unions persist because they are a natural and, in\\nthe present state of civilization, necessary feature of in-\\ndustrial society. They are the most efficient means ex-\\nperience has presented by which laborers can make their\\ndesires for improvement effective.\\nThe mistakes and misfortunes of trade unions, which\\nseem so conspicuous, are relatively few, compared with\\nthe general success. The demagogue is not nearly so\\nprevalent in trade unions as in political parties, and when\\nhe does appear in the trade unions he is frequently the\\nagent of some political machine, trying to use the labor\\norganization for political ends.\\n101. Advantages of Labor Organization. There are\\ntwo respects in which the trade union is permanently\\nbeneficial to the wage earners one is in its constant\\nvigilance over wages, hours of labor and conditions of\\nemployment, the other is in its educational influence on\\nits members.\\nThe unions are constantly on the alert for higher\\nwages and better working conditions. They are the\\nmeans through which the expanding and improving\\nstandard of living of the wage earners expresses itself\\nand brings pressure to bear for higher wages. Every", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0196.jp2"}, "197": {"fulltext": "LABOR ORGANIZATIONS 1 8?\\ntime the unions succeed in getting a higher wage rate,\\ntransferring children from the workshop into the\\nschool, shortening the working day, improving the\\nsanitary surroundings, etc., they secure an improve-\\nment not merely for their own members but ulti-\\nmately for all wage-earners who are near enough to come\\nat all under the touch of the same influences. It is fre-\\nquently urged against trade unions that they represent\\nonly a fraction of the laborers, but they really do the\\nfighting for the whole group. For instance, when wages\\nin any trade are increased the rise is seldom limited to\\nthe members of the unions who have made the struggle\\nand lost weeks and months possibly in a strike to secure\\nit. These may not constitute more than 15 or 20 per cent,\\nof the total laborers in the trade, but when the increase is\\ngained it is for all. Those laborers who did not join the\\nunion, who would not help the strike, and often were\\nthe first to complain about the fat salaries of the labor\\nleaders, to which they contributed nothing, share in the\\nbenefits gained by the efforts of organized laborers.\\nMoreover, the benefits thus secured are for the most\\npart permanent. When the wages of, say, carpenters,\\nbricklayers, painters or machinists, have by persistent ef-\\nfort been raised to $3.50 or $4 a day, they can almost\\nnever be forced down again to $2 or $2.50 a day. Even\\nwhere wages are pushed down from a high point under\\nan industrial depression, they mount up again to the old\\nmark immediately on the return of prosperity. So that,\\nin reality, each step gained becomes a permanent acqui-\\nsition to the welfare not of the members of the trade\\nunions alone but of the whole craft.\\nThe second important respect in which trade unions\\nare a permanent benefit to the laborers is in the oppor-\\ntunities of economic education they afford. The regular", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0197.jp2"}, "198": {"fulltext": "1 88 OUTLINES OF SOCIAL ECONOMICS\\nmeetings, definite interests, and centering of attention\\nupon purely economic topics, makes frequent discussion\\nof this kind of subjects necessary. At almost every meet-\\ning of the union some complaint or idea is presented, or\\nnew demands some of them very unreasonable, and\\nthese have to be discussed. The more conservative ele-\\nment is constantly repressing the enthusiastic or warlike\\nspirit of the less cautious, and so these discussions are\\ngood training. They force those who take part in them to\\nbe well equipped and under the necessity of finding out\\nthe facts, collecting information.\\nThe federation of these organizations is a great step.\\nIt creates a central body to which grievances can be sub-\\nmitted before strikes are ordered. This compels each\\nunion to collect data and present arguments to establish\\na plausible case. It also tends to create a conservative\\njudicious quality in those who have to pass upon these\\ncontests, because responsible leaders lose their reputa-\\ntion and prestige in proportion to the mistakes the organ-\\nizations make. Very much more than the public im-\\nagines, it is a constant struggle with most labor leaders\\nto keep peace in the ranks and prevent the hot-heads from\\nbringing on useless conflicts with employers. All this is\\nhighly educational in its influence, and the effect is quite\\nmarked on the conduct of trade unions to-day as coin-\\npared with twenty or thirty years ago.\\n102. flistakes and Needs of Unions. The mistakes\\nof trade unions are largely due to the lack of these con-\\nservative and educational influences. Too frequently it\\nhappens that when a union is very strong its members\\ninsist upon being dogmatic and even despotic. They\\nbecome as overbearing in their rules and regulations and\\nin exactions from employers as employers ever were to-\\nward laborers when there were no unions.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0198.jp2"}, "199": {"fulltext": "LABOR ORGANIZATIONS I 89\\nOften, even yet, powerful unions either resort to brute\\nforce or seem to countenance it, in the conduct of strikes.\\nThese mistakes have done and always will do trade\\nunions incalculable harm, so long as they are continued,\\nbut it should not be assumed that they overbalance the\\ngood these organizations are doing. The remedy lies in\\nmore and more education. The unions should and must\\nobserve the principles of ordinary fairness and act in ac-\\ncordance with economic laws.\\nMany charges are made against trade unions which are\\nnot and never were true. For instance, it is commonly\\nasserted that it is a trade-union rule that no member\\nshall receive more than a certain amount of wages. This\\nis not true. There never was any need for such a rule.\\nThere never was any danger that employers would pay\\ntoo high wages to anybody. The rule that trade unions\\nhave tried to enforce is that no member shall be paid\\nless than a certain amount, and it is probably true that in\\nenforcing this rule they have often compelled employers\\nto pay some inferior workmen more than they were\\nworth. The employers remedy for that is to not employ\\ninferior men. The union s function is to keep up the\\nstandard of wages, and the employers must keep up the\\nstandard of the workmen s efficiency.\\nOf course, it would be a great help in this direction if\\nunions would always exercise their influence in behalf of\\ngood workmanship, by saying that a laborer must be\\ncompetent in order to have the protection of the union.\\nIn some trades this has already come to be the rule. There\\nare some unions, like that of the locomotive engineers,\\nwhich a man cannot join unless he is a competent engi-\\nneer, and, on the other hand, the union insists that no\\nengineer shall be employed who is not a member of the\\nunion. There is a sense in which this is justifiable. If", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0199.jp2"}, "200": {"fulltext": "I90 OUTLINES OF SOCIAL ECONOMICS\\nthe union will insist that its members shall be competent\\nworkmen, the capitalists will have an interest in select-\\ning only union men. There are some railroads which\\nrecognize this, and when they want an engineer go to\\nthe union for him, and hold the union responsible for his\\ncompetency. Thus there is a moral responsibility upon\\nthe union for the efficiency, sobriety and other qualities\\nof the workman, the effect of which has been very satis-\\nfactory. It is along these lines that trade unions need\\nfurther and higher development. In spite of all their de-\\nfects trade unions cannot be suppressed any more than\\ncorporations can be wiped out and hand-labor industry\\nrestored. The remedy for the defects of trade unions\\nlies in improvement through economic education and\\ngreater moral responsibility. To provide more education\\nand emphasize this moral responsibility are the two most\\nimportant duties of trade unions today.\\nSUGGESTED READING.\\nIn Principles of Social Economics, from the middle\\nof page 423, in Chapter VII., of Part IV., to end of chap-\\nter. This is the remaining portion of the chapter on\\nCombinations of Labor, and discusses the economics of\\nlabor unions and their necessity in modern industry.\\nAdditional References. In Howell s Conflicts of Cap-\\nital and Labour/ Chapter IV., on Political Economy\\nand Trade Unions also Section I. of Chapter IX., on\\nStrikes Their Objects, Cost and Results. This last\\nis especially sensible and wholesome, and is strongly rec-\\nommended.\\nIn Brentano s Relation of Labor to the Law of To-\\nday, Chapter XII., of Book II., on The Solution of the\\nLabor Question,", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0200.jp2"}, "201": {"fulltext": "LABOR ORGANIZATIONS 191\\nIn Carroll D. Wright s Industrial Evolution of the\\nUnited States, Chapters XXIV. and XXV. of Part III.,\\ndescribing some of the famous labor controversies and\\nstrikes in this country.\\nIn Francis A. Walker s Wages Question, Chapter\\nXIX., of Part II., in which he gives an affirmative an-\\nswer to the question May any Advantage Be Acquired\\nby the Wages Class through Strikes or Trades Unions\\nEXTRACTS FROM READINGS.\\nLosses and Gains of Strikes. It may at once be con-\\nceded that the cost of a prolonged strike is enormous and\\nthat the distress which it occasions is ofttimes appalling;\\nbut workmen would not undergo all this suffering, and\\ncontribute their hard earnings week after week, in sup-\\nport of those engaged in the struggle, if there were no\\ncorresponding advantages to be gained from the outlay.\\nIt would be tedious to attempt to tabulate the estimated\\ncost of strikes during the present century; and it would\\nserve no useful purpose, unless we were able at the same\\ntime, to estimate the commercial value of every success-\\nful one, and strike a balance of profit and loss. This\\ncould not possibly be done, even if the calculations em-\\nployed were as profound and difficult as those used in\\nastronomy, for there is no rule in mathematics, or stand-\\nard of computation, in any of the known tables, by which\\nto arrive at any definite result or satisfactory conclusion.\\nThere is, in fact, absolutely no comparison between the\\ncost in pounds sterling and the gain, material and moral,\\nwhich has accrued to the working classes from some of\\nthose labor struggles, comprehended in the term\\nstrikes. From Howell s Conflicts of Capital and\\nLabor, Chapter IX.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0201.jp2"}, "202": {"fulltext": "I92 OUTLINES OF SOCIAL ECONOMICS\\nStrikes Sometimes Necessary. I cannot conceive how\\none can look at the condition of the manufacturing opera-\\ntives as they were left at the repeal of the iniquitous com-\\nbination acts in 1824, and question that the early strikes\\nin England were essential to the breaking up of the power\\nof custom and of fear over the minds of the working\\nclasses, habituated to submission under the terror of\\nlaws now universally recognized as oppressive, unaccus-\\ntomed to concerted action, illiterate, jealous, suspicious,\\ntax-ridden and poverty-stricken. It is well enough\\nfor the peace of industrial society and the mutual under-\\nstanding of all parties, that masters should be made to\\nknow that two can play at the same game. There is noth-\\ning to quicken the sense of justice and equity like the\\nconsciousness that unjust and inequitable demands or\\nacts are likely to be promptly and fearlessly resisted and\\nresented. From Walker s Wages Question, Chapter\\nXIX.\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. Why may trade unions be called strictly economic organiza-\\ntions\\n2. In what two chief particulars are unions beneficial to wage\\nearners?\\n3. In what way do the other laborers share in the benefits\\ngained by the unions?\\n4. What effect have unions on the permanent welfare of the\\nwages class?\\n5. In what way do trade unions exert an educational influence\\non their members?\\n6. What are some of the chief complaints against trade unions?\\n7. To what are these mistakes chiefly due?\\n8. What is the true remedy for these errors?\\n9. What rule have some of the more advanced unions adopted\\nas to qualifications of their members?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0202.jp2"}, "203": {"fulltext": "CHAPTER XXIII.\\nPANICS AND DEPRESSIONS.\\n103. Difference Between Panics and Depressions.\\nPanics and industrial depressions are forms of business\\ndisturbance peculiar to modern industry. A panic is a\\nsudden alarm concerning the safety of money and invest-\\nments; it always arises in financial and banking centers.\\nIt is a financial fright, and affects financial interests very\\nmuch as an alarm of fire affects the occupants of a\\ntheatre. The moment the cry of fire is heard, without\\nstopping to learn the facts or the safe way of acting, all\\nimagine the worst, lose self-control and make a frantic\\ndash to escape. In doing so they produce chaotic con-\\nfusion so that nobody can act intelligently, and the\\nweaker ones are ruthlessly trodden under foot. This is\\npractically what occurs in the money centers when a\\nfinancial panic suddenly arises.\\nA business depression is different. It may arise as the\\noutcome of a money panic or from a variety of other\\ncauses, but usually it is due to a falling off in the market\\ndemands for products. Buyers grow more reluctant to\\nplace orders, they hesitate, purchases dwindle, and as a\\nresult producers slacken their efforts or close their works,\\nnecessarily bringing enforced idleness and hardship upon\\nthe community,\\n104. Causes of Business Disturbances, The imme-\\ndiate causes of these two kinds of disturbances are nu-\\nmerous, but traced to the source they are essentially the\\ni93", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0203.jp2"}, "204": {"fulltext": "194 OUTLINES OF SOCIAL ECONOMICS\\nsame. Both panics and depressions are due to uncer-\\ntainty or disturbance in the confidence of the people, aris-\\ning from some disarrangement in the relation of produc-\\ntion to consumption. It is only under modern conditions\\nof industry that business to any extent depends upon con-\\nfidence and credit. Whoever heard of a financial panic in\\nChina, India or among the ancients, or in any purely\\nagricultural country? The reason for this is that panics\\nare due to a sudden shaking of the confidence of people\\nin their investments, which are for the time largely re-\\nmoved from the personal control of the owners but, in\\ncountries where industries are simple and largely agri-\\ncultural, investments are not entrusted to others in this\\nway. The industries are small and directly managed by\\nthe owners, there are no complicated financial relations,\\nand production is chiefly by hand labor or by very primi-\\ntive methods. Under these conditions there is very little\\nreliance on credit, and hence rarely a panic.\\nFinancial panics may come from any alarm which\\ncauses capitalists and banks to withdraw loans and re-\\nfuse to make new ones, or from scarcity of money in lo-\\ncalities where there is a sudden increased demand for it,\\nor from overconfidence and rash investment in specula-\\ntive enterprises not sufficiently developed or tested, and\\nwhich soon fail. This latter condition existed at the close\\nof the civil war, and led to the panic of 1873, and we were\\ndangerously near it again in the fall of 1899 and spring\\nof 1900.3. The difference in the two periods was that in\\n1873 business conditions were in a declining state, while\\nin 1899-1900 business was in a solidly improving condi-\\ntion, so that even rash speculations did not bring\\ndisaster.\\nIn the last analysis, as already indicated, business de-\\npressions, and usually financial panics, are directly or in-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0204.jp2"}, "205": {"fulltext": "PANICS AND DEPRESSIONS 195-\\ndirectly due to an irregular or badly adjusted relation of\\nproduction to consumption. If consumption could be\\nmade to keep exact and regular pace with production,\\nno matter how rapid the increase there would never be\\nan industrial depression and seldom a financial panic. The\\nfailure of general consumption to increase with the\\ngrowth of production is sure to bring on an industrial\\ndepression. Whenever things are produced and cannot\\nbe sold, depression sets in. This condition may arise by\\na slackening of demand for the materials and goods used\\nin production and trade, due to fear of some sudden\\nchange in the monetary standard, or in the tariff, or sys-\\ntem of taxation, or to prospect of war, etc. This has ex-\\nactly the same effect upon industry as a gradual falling\\noff in the daily consumption by the people. Both create\\na disturbance in the balance between consumption and\\nproduction, and business depression begins. Orders are\\ncancelled or withheld, mills are closed, laborers dis-\\ncharged, and, in the concerns which do keep on, produc-\\ntion is lessened and wages lowered, all of which helps to\\nintensify the general hard times.\\nio5. How Can These Evils Be Prevented? Since\\npanics and industrial depressions did not exist in primi-\\ntive society and have come into existence with modern\\nindustry, it might be assumed that the only remedy is to\\nreturn to early conditions. Such a conclusion assumes\\nthat these evils are a necessary and unavoidable feature\\nof progress. This is a mistake. The remedy for panics\\nand depressions is not to return to hand-labor industry,\\nbut to call upon economic science and statesmanship to\\naid natural laws in providing a better adjustment of con-\\nsumption and production, so as to maintain a steady\\nbalance, both increasing together.\\nIn order to avoid financial panics, we ought, for one", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0205.jp2"}, "206": {"fulltext": "196 OUTLINES OF SOCIAL ECONOMICS\\nthing, to reform our banking system so that it may yield\\nbetter accommodation for business purposes, and re-\\nspond better to sudden waves of demand for loans of\\ncurrency. This would require a much more thorough\\nwelding together and interdependence among the banks\\nof the country, and for that matter of the world, so that\\nfinancial accommodations, like water seeking its level,\\nwould flow to the point of greatest need, and inequalities\\nin the supply of money tend to neutralize each other so\\nthat the needs of every section could be properly met.\\nBusiness depressions can be made less and less frequent\\nby the worldwide extension of means of communication,\\ninformation and transportation. In this way the signs of\\ngrowing or declining demand at any given point can be\\nknown everywhere, and the world s products dispatched\\nfrom the points of glut to the points of great demand be-\\nfore great losses overtake producers in one section and\\nexcessive prices burden consumers in another. More ac-\\ncurate knowledge of the conditions of demand and sup-\\nply is necessary, not merely in the locality where any\\ngiven commodities are produced, but in every accessible\\nmarket in the world. In proportion as this knowledge is\\nmeager and unreliable, it is impossible to adjust produc-\\ntion to the market demand. Industrial disturbances re-\\nsulting from so-called overproduction are very fre-\\nquently due to the ignorance of producers concerning the\\nconditions of the market and its means of supply.\\nTherefore, increase of accurate information as to the\\nactual state of consumption and means of supply is one\\nof the first conditions of getting rid of industrial de-\\npressions. This can be furnished, very largely, by the\\norganization into large concerns of all such industries as\\nare adapted to consolidation. Small firms cannot afford\\nthe expense necessary to procure this kind of informa-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0206.jp2"}, "207": {"fulltext": "PANICS AND DEPRESSIONS 1 97\\ntion. When the industries whose products supply more\\nthan a local market are developed to or organized on a\\nscale sufficient to warrant the expenditure necessary for\\nspecial regular information, making economic forecasts\\npossible, a long step will have been taken towards abol-\\nishing industrial depressions altogether.\\nThis information in regard to the conditions of con-\\nsumption should include all the details of the standard of\\nliving, tastes, habits, demands, employment, earnings,\\nand other conditions, in different countries, which directly\\nand indirectly affect the aggregate consumption of prod-\\nucts. Such data should be accurately and frequently col-\\nlected, and while large corporations will more and more\\ncollect it for themselves it is a duty the government\\nmight well undertake, for the benefit of all industries.\\nPublic policy should also be directed to stimulating a\\nhigher, expanding standard of living among the people,\\nwhich leads to a steady increase in consumption and so\\nlessens the danger from one of the great causes of busi-\\nness depression. When the balance between production\\nand consumption is disturbed it can only be restored in\\none of two ways, either by increasing the consumption as\\ncompared with the production, or lessening the produc-\\ntion as compared with the consumption.\\nTo increase consumption stimulates industrial life and\\nthe upward progress of society. To restrict production\\nsets all the depressing social forces in action. It creates\\nenforced idleness, destroys profits, lessens the value of\\ninvestments, discourages enterprise, and stops the springs\\nof optimism, hope, confidence and progressive activity.\\nPanics and depressions came with modern industry,\\nbut are not necessary features of it. They can and will\\nbe diminished in frequency and intensity, perhaps abol-\\nished entirely. Reform in our money and banking sys-", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0207.jp2"}, "208": {"fulltext": "198 OUTLINES OF SOCIAL ECONOMICS\\nterns, removing all fear of sudden changes and equaliz-\\ning the distribution of money according to business\\nneeds, and steadiness in the government s tariff and tax-\\nation policies, will remove some of the chief causes of\\npanics. Concentration of capital, making production\\nmore steady and furnishing ample regular information,\\nsupplemented by government statistics, so that economic\\nconditions may be foreseen and prepared for, will do\\nmuch to prevent industrial depressions. Wise public pol-\\nicy, in nation, state and city, furnishing ample educa-\\ntional opportunities, prohibiting child labor, restricting\\nthe hours of labor so as to increase the social opportuni-\\nties of the millions, enforcing decent and sanitary housing\\nin cities, limiting the immigration of aliens with their de-\\ngraded standard of living, furnishing clean streets, li-\\nbraries, public baths and good roads, encouraging the\\ndiversification of industry as a progressive and socially\\nenlivening influence, and in a score of other ways helping\\nto raise and improve the standard of living of the people,\\nwill stimulate the forces that lead to higher wages and so\\nto a steadily increasing and diversifying market demand\\nfor products. Under such conditions, only some severe\\ncalamity or national folly can bring on a real industrial\\ndepression.\\nSUGGESTED READING.\\nIn Principles of Social Economics, Chapter V. of\\nPart IV., on Business Depressions.\\nAdditional Reference. In Hadley s Economics, Sec-\\ntions 330 to 333 inclusive, in Chapter IX. These sec-\\ntions trace the causes and progress of commercial crises\\nor industrial depressions.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0208.jp2"}, "209": {"fulltext": "PANICS AND DEPRESSIONS 1 99\\nQUESTIONS FOR REVIEW OR DEBATE.\\n1. Explain the difference between a panic and an industrial de-\\npression.\\n2. What is the great general cause at the root of both panics\\nand industrial depressions?\\n3. What are some of the more immediate causes of financial\\npanics?\\n4. Mention some of the direct causes of industrial depressions.\\n5. Describe one important reform that would help prevent\\nfinancial panics.\\n6. How could increased information and transportation reduce\\nindustrial depressions?\\n7. What tendency of industries is most favorable to this greater\\naccuracy in knowledge of conditions?\\n8. Mention some of the things the government can do to in-\\ncrease commercial information and stimulate a higher\\nstandard of living.\\n9. How and why would such measures affect industrial de-\\npressions?", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0209.jp2"}, "210": {"fulltext": "CHAPTER XXIV.\\nARE WE REALLY PROGRESSING?\\n106. The Test of Progress. Before attempting to\\nanswer the question, whether or not we are really pro-\\ngressing, we must recall what is meant by progress. In\\ngeneral it means changing to a more complex condition.\\nProgress in horticulture is the development of new and\\nvaried forms of plant life. Progress in society is the de-\\nvelopment of a greater variety of desires, habits, experi-\\nences and activities, and this always involves a greater\\nquantity of wealth and greater variety in its forms and\\nuses. This greater variety, reaching into every phase of\\nthe use of wealth, of social life, and multiplying indi-\\nvidual rights and activities, is the evidence of progress.\\nIt can hardly ever be said that there is real progress\\nin a community unless there is an increase of the wealth\\nproduced, diversification of industries and employments,\\nand a greater distribution of the increasing wealth among\\nall classes of the people, resulting in their general social\\nand individual improvement. Judged by this standard,\\nare we in the United States really progressing? This\\nquestion is one upon which volumes have been and can\\nbe written, and at most we can only mention a few leading\\nconsiderations bearing on the material and social welfare\\nof the nation.\\n107. Population and Wealth.* In i860 the popula-\\n*These statistics are taken from the United States Census\\nReports.\\n200", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0210.jp2"}, "211": {"fulltext": "ARE WE REALLY PROGRESSING? 201\\ntion of the United States was 31,443,321. The invest-\\nment of capital in manufacturing and mechanical indus-\\ntries was $1,009,855,715, or $32.11 per capita of the pop-\\nulation, and the value of the total product was $1,885,-\\n861,676, or $59.98 per capita. In 1890 the population of\\nthe country was 62,622,250. The capital invested in man-\\nufacturing and mechanical industries was $6,525,156,486,\\nor $104.19 per capita, and the value of the product was\\n$9,372,437,283, or $149.67 per capita. This was an in-\\ncrease in the total capital invested in these industries of\\n546 per cent., or 224 per cent, per capita, and an increase\\nof 397 per cent, in the total product, or 149 per cent, in-\\ncrease of product per capita. Statistics of agricultural,\\nmineral and fishery products were not included in the\\ncensus of i860, but in 1890 these were: agricultural\\nproducts, $2,460,107,454; mineral, $587,230,662 fishery,\\n$44,277,514. The products of manufacturing and mer-\\ncantile industries in 1890 were valued at $9,372,437,283,\\nas before stated; deducting the $5,021,453,326 worth of\\nmaterials used, we have $4,350,983,957 as the value\\nstrictly due to the manufacturing process applied to\\nproducts, and adding to this the value of agricultural,\\nmineral and fishery products, we have a grand total of\\nproduction in 1890 of $7,442,599,587. This is a total per\\ncapita product in 1890 of $118.85, or $585.93 per average\\nfamily of 4.93 persons. Of course, this is no indication\\nof what the actual income per family was this varied\\nfrom a mere pittance on the part of some to the immense\\nincomes of the very rich, but the great majority, espe-\\ncially the wage-earning class, earn incomes which do not\\nwidely vary from this general average of production, be-\\ning, on the whole, necessarily, somewhat under it. The\\nactual distribution of the wealth produced is roughly in-\\ndicated by the movement of prices and wages.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0211.jp2"}, "212": {"fulltext": "202 OUTLINES OF SOCIAL ECONOMICS\\n108. Prices and Wages. The products of practi-\\ncally, all manufacturing industries, especially those in\\nwhich large capital is invested, have fallen in price since\\ni860; but in some other industries, notably agriculture,\\nproducts like beef, mutton, chickens, eggs, butter, fruits,\\netc., have tended to increase in price. Taking all prod-\\nucts together, and grouping them according to their im-\\nportance in general consumption, prices fell from i860 to\\n1 89 1 a trifle less than 4 per cent. That is to say, a dollar\\nwould buy about 4 per cent, more of the total products\\nconsumed by the people in 1891 than it would in i860;\\nso that, so far as general prices are concerned, all con-\\nsumers, rich and poor, fared alike in getting 4 per cent,\\ngain.\\nDuring this same period money wages, as nearly as\\nthey can be ascertained, and properly averaged according\\nto importance of employments, rose about 68 per cent. If\\nwe carry the comparison back to 1840, the increase in\\nwages is more than 85 per cent. Confining ourselves to\\nthe period since i860, if we add to the wage average of\\n1 89 1 the 4 per cent, increase in the purchasing power of\\na dollar, we find that the average American laborer was\\nable to obtain for a day s work about 75 per cent, more\\nthan in i860. That is to say, every day s wages would\\nbuy 75 per cent, more of food, clothing, shelter and sun-\\ndries in 1890 than it would in i860. In other words,\\nduring this period, as the laborer s part of the nation s\\nincreased production, his command over the necessaries\\nof life and means of social welfare increased at the rate\\nof 25 per cent, every ten years.\\n109. Hours of Labor. The question may well be\\nThe statistics given as to prices and wages are taken from the\\nU. S. Senate Report of 1893 on Wholesale Prices, Wages and\\nTransportation.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0212.jp2"}, "213": {"fulltext": "ARE WE REALLY PROGRESSING? 203\\nasked in this connection, does the laborer work harder or\\nlonger to get the larger amount he earns to-day than he\\ndid to obtain the smaller amount in i860? The answer\\nis, no. The tendency during this whole period has been\\nto lessen the tax upon the laborer s time and increase the\\nproportion of leisure. In i860 the rule in practically all\\nmanufacturing industries in this country was to work\\ntwelve hours a day. Beginning in Massachusetts in 1874,\\nthe hours of labor in manufacturing, mining and trans-\\nportation industries, and of practically all common labor\\nin manufacturing centers, have been reduced in some\\ncases by law and in others by the efforts of trade unions\\nto about ten hours, and in a number of special industries\\nto nine and eight hours. For instance, machinists and\\nthe building trades in most large cities have nine hours,\\nand, in some of the largest cities, eight hours a day.\\nMiners almost uniformly work only eight hours a day.\\nThe factory operatives in Massachusetts work only 58,\\nand in New Jersey 55 hours a week. Speaking generally,\\nsince i860 the hours of labor have been reduced by from\\ntwo to four hours a day. Thus, the earning power of a\\nday s work has increased about 75 per cent., and the\\nworking hours have been reduced by from fifteen to\\ntwenty-five and thirty per cent. In other words, the\\nwage-earner can obtain practically three-quarters more\\nwealth by working one-fifth less time, as compared with\\ni860.\\nno. Education for Factory Children. In popular\\neducation, which is so important a feature of social im-\\nprovement, the progress has been equally marked. In\\ni860 there were no legal limits fixed to the age at which\\nchildren should commence work in factories, any more\\nthan to the length of the working day. But during the\\nlast twenty-five years there has been a more or less", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0213.jp2"}, "214": {"fulltext": "204 OUTLINES OF SOCIAL ECONOMICS\\nsteady movement in all the states, with the exception of\\nthe South, to introduce compulsory education for chil-\\ndren under a certain age, especially affecting those work-\\ning in shops and factories. In this, as in all legislation\\nof the kind, Massachusetts was again in the lead, and\\nmost of the states in the North and East where manufac-\\nturing industries exist have followed. Besides legally\\nlimiting the hours of labor to ten or less, the age limit for\\nworking children has been gradually raised, and their at-\\ntendance at school during at least a certain number of\\nmonths in the year has been made compulsory. In some\\ninstances the age limit at first was made ten years; it\\nhas been gradually raised until it is now fourteen in most\\ncases, and in some states, including New York, it is six-\\nteen years, unless the young person is able to read and\\nwrite.\\nIn the South no laws of this character have been\\nadopted, but a movement demanding child-labor legisla-\\ntion has begun in earnest.\\nin. Truck System Abolished. Besides the long\\nhours and lack of educational opportunities in i860, and\\nfor a long time afterwards, workingmen labored under\\nmany other disadvantages. For instance, they were paid\\nvery largely in store orders; that is, the corporations\\nowned stores supplying various commodities, and the la-\\nborers were practically compelled to purchase their goods\\nat the corporation store. If ever they wished to go else-\\nwhere to buy goods they had to use these orders and\\nsubmit to a discount on them. This was called the truck\\nsystem. It prevailed throughout New England, as it did\\nin the early part of the century in old England. Laborers\\nwere seldom paid, even in store orders, more often than\\nonce a month. With a few exceptions, this practice is\\nnow abolished. In most cases it has been prohibited by", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0214.jp2"}, "215": {"fulltext": "ARE WE REALLY PROGRESSING? 205\\nlaws providing that laborers must be paid in full legal\\nmoney and be at liberty to make their purchases whereso-\\never they please. In several states, also, laws have been\\nenacted compelling employers to pay laborers at least\\nevery two weeks in some cases, every week.\\n112. Sanitation and Homes. In the matter of home\\nappointments and sanitation the improvement has been\\nvery great, although much remains to be done, especially\\nin cities. Forty years ago there were practically no sani-\\ntary appliances connected with the laborers homes, ex-\\ncept what gravitation provided. The community had\\ndone almost nothing to insure wholesome conditions.\\nCities were badly drained, poorly lighted, and as a rule\\ninadequately furnished with water supply. Since that\\ntime sanitary science has made marked progress, and\\nthrough legislation and boards of health numerous mod-\\nern improvements have been applied to the dwellings of\\nthe laboring class in most of the large cities. Builders\\nare now rarely permitted to erect houses without modern\\nprovisions for ventilation, light, sanitary plumbing and\\nconveniences, proper water supply, etc., and these require-\\nments are gradually being made more comprehensive and\\nstrict. Not many years ago the bathroom was the luxury\\nonly of the rich it is now rapidly becoming a common-\\nplace necessity of the laborers tenements.\\n113. Individual Betterment. Concurrently with these\\nvarious movements has come a greater degree of per-\\nsonal freedom and individual character, a relative de-\\ncrease of pauperism and of serious crimes, and a gen-\\nerally recognized higher standard of civilization.\\nThe evidences and statistics on all the manifold phases\\nof this subject are so voluminous that we can do little\\nmore than summarize the leading facts and state the gen-\\neral conclusions. In verifying these, reference should be", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0215.jp2"}, "216": {"fulltext": "206 OUTLINES OF SOCIAL ECONOMICS\\nmade to standard, recognized statistical authorities and\\ncompetent students of industrial, social and moral prog-\\nress. Some of these, the most easily accessible, we have\\nindicated in the suggestions for reading in connection\\nwith this chapter.\\n114. Duty of the Future. Encouraging as the evi-\\ndences of progress are, they should not by any means\\nlull us into indifference and neglect of the grave evils that\\nstill remain. We must deal with these and with the new\\nproblems that progress is constantly developing, vig-\\norously, persistently, and if necessary by new methods\\nadapted to the new conditions. There is hardly any feature\\nof our national life which has not the possibilities of being,\\non the one hand, perverted, abused and converted into a\\nmenace to our freedom and progress, and, on the other\\nhand, of serving public welfare and becoming a source\\nof strength and prosperity to the republic. To prevent\\nthe former and secure the latter results demands constant\\nwatchfulness, study and willingness to help on the part\\nof every citizen. The natural evolution of industry may\\nbe trusted to bring us an increasing measure of material\\nwell-being, but to secure the good results which this is\\ncapable of yielding we must jealously watch the social\\nconsequences of every new step. Increase of wealth, if it\\nis to be of any real utility to mankind, must be accom-\\npanied by a constant broadening of the opportunities for\\nusing it, and an increasing variety of higher and finer in-\\ncentives to use it wisely and well. Production and wages\\nwill increase, but the hours of labor must be still further\\nshortened, the age-limit of child labor must be still further\\nraised, educational opportunities must be extended and\\nthe methods broadened and improved, city tenements\\nmust be made more healthful and decent, the wage-earn-\\ning class must be protected against the pitiable effects of", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0216.jp2"}, "217": {"fulltext": "ARE WE REALLY PROGRESSING? 207\\naccidents, sickness and old-age poverty by some auto-\\nmatic and general system of labor insurance, systems of\\ntaxation and finance require scientific remodelling, meth-\\nods of dealing with crime and vagrancy demand far more\\nthorough development, and, in general, society must be\\nprotected against dangerous and down-dragging in-\\nfluences, while encouragement is given to all that minis-\\nters to a higher standard and quality of life. If progress\\nis to be genuine, industrial and social forces must supple-\\nment the efforts of the church and all wholesome moral\\nagencies for that ultimate and highest object of all\\nprogress, the development of individual character.\\nSUGGESTED READING.\\nIn Principles of Social Economics, the Summary\\nand Conclusion, in which special emphasis is laid on\\nthe character of social progress and duties of statesman-\\nship.\\nAdditional References. In Marshall s Economics of\\nIndustry, Chapter XII. of Book VI., on The Influence\\nof Progress on Value.\\nIn Carroll D. Wright s Outline of Practical Sociolo-\\ngy, Parts VI. and VII., on Social Well-Being and\\nThe Defence of Society, respectively; these portions\\ndiscuss the accumulation and distribution of wealth, the\\nproblem of poverty, crime and its punishment, the tem-\\nperance question, and the relation of art to progress.\\nThe whole volume will be found useful for reference\\npurposes, as will also the same author s Industrial Evo-\\nlution of the United States, which summarizes the his-\\ntory and statistics of our industrial progress from co-\\nlonial times to the present day.\\nIn Franklin H. Gidding s Elements of Sociology,", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0217.jp2"}, "218": {"fulltext": "208 OUTLINES OF SOCIAL ECONOMICS\\nChapter XXIII., on Progress. Other chapters, espe-\\ncially those on Civilization, Democracy, The Char-\\nacter and Efficiency of Organization, The Early His-\\ntory of Society, and Tribal Society, throw additional\\nlight on various phases of the problem of progress.\\nIn Social Peace A Study of the Trade-Union Move-\\nment in England, by G. von Schulze-Gaevernitz, Chap-\\nter XVII. which is the Conclusion and marshals an\\narray of considerations indicating improvement in the\\ncondition of the masses.\\nIn William Edward Hearn s Plutology: or the The-\\nory of the Efforts to Satisfy Human Wants, Chapter\\nXXIV., treating Of Some Causes of Poverty.\\nIn The Forum for July, 1900, article on Is Crime\\nIncreasing? by Roland P. Falkner.\\nFor statistics of industrial progress in the United\\nStates the most complete sources of authority are the\\ngovernment census reports and the Senate Report of\\n1893 on Prices, Wages and Transportation. Data on\\nnearly every important phase of the progress of industry\\nand labor in England may be found in Gibbins Industry\\nin England, or the same author s smaller volume Indus-\\ntrial History of England Sir Robert Giffen s Progress\\nof the Working Classes in the Last Half Century Mal-\\nlock s Labour and the Popular Welfare, and the same\\nauthor s Classes and Masses. For general data, includ-\\ning all nations, the most convenient and probably most\\naccurate authorities are the Statesman s Year Book\\nand Mulhall s Industries and Wealth of Nations. An\\ninteresting review of political progress in Europe and\\nAmerica is given in Frederick May Holland s Liberty in\\nthe Nineteenth Century. Information as to the pub-\\nlishers, prices, etc., of these works, as of all others re-\\nferred to in this volume, is given in the Appendix.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0218.jp2"}, "219": {"fulltext": "ARE WE REALLY PROGRESSING? 209\\nEXTRACTS FROM READINGS.\\nMoral Progress a Fact. Acts which are now justly\\nregarded as heinous offences were once considered either\\nlegitimate or at least venial. Piracy was in early Greece\\na recognized and honorable occupation. The only form\\nof dishonesty noticed in the ancient Roman law was\\ntheft. Our own ancestors established a tariff for homi-\\ncide. The morality of the present day is manifestly some-\\nthing different from that which such a state of law repre-\\nsents. The very shock that the perpetration of these\\ngreat crimes and frauds now gives us is evidence that an\\nopposite course of conduct generally prevails. If the gen-\\nerality of men had not been peaceable and honest, these\\noffenders would have had no opportunity for their iniqui-\\nties. It is the nature of the human intellect, as Lord\\nBacon has observed, to be affected with what is affirma-\\ntive and positive rather than with what is negative and\\nprivative. We are therefore struck with some glaring\\nbut exceptional offence, and the countless multitude of\\njust and honorable dealings remains unnoticed. How nu-\\nmerous such dealings are, and what a tendencv there is in\\nan industrial community to their increase is manifest.\\nFrom Hearn s Plutology, Chapter XXIV.\\nAll Classes Are Growing Richer. The assertion that\\nthe rich are growing richer and the poor poorer is a wan-\\ndering phrase, without paternity or date; it is not au-\\nthority but familiarity that has given it weight. To the\\ninvestigator the real statement should be: The rich are\\ngrowing richer; many more people than formerly are\\ngrowing rich; and the poor are growing better off. If\\nthe sum total of wealth were stationary, any increase in\\nthe wealth of the rich would be an exploitation of the\\npoor, and then it would be true that the poor are in", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0219.jp2"}, "220": {"fulltext": "2IO OUTLINES OF SOCIAL ECONOMICS\\npoorer circumstances than formerly. But the sum total\\nof wealth is not stationary it increases with great rapidi-\\nty, and while under this increase the capitalistic side se-\\ncures a greater relative advantage than the wage-earner\\nof the profits of production, the wage-earner secures an\\nadvantage which means the improvement of his condi-\\ntion. It can be demonstrated that the condition\\nof the poor man is improving, and that his share is rela-\\ntively greater than under previous systems, and we know\\nthat the proportion of the skilled workers of the com-\\nmunity and of those engaged in the higher classes of em-\\nployment is constantly increasing. From Wright s\\nOutline of Practical Sociology, Chapter XX.\\nQUESTIONS FOR REVIEW OR DEBATE.\\ni. What is the primary test of progress?\\n2. Compared with the growth in population, how much did\\nthe production of wealth in manufacturing and mercan-\\ntile industries in this country increase between i860 and\\n1890?\\n3. What do statistics show as to the increase in wages and\\ndecline in prices between i860 and 1890?\\n4. What changes have taken place with reference to hours of\\nlabor since i860?\\n5. What progress has been made in regard to restriction of\\nchild-labor and compulsory education?\\n6. Describe the truck system; to what extent does it pre-\\nvail as compared with a generation ago?\\n7. What movement has been and is going on with reference\\nto the sanitation and improvement of city houses?\\n8. Considering all these evidences of progress, why is con-\\nstant watchfulness and reform effort still necessary?\\n9. Mention some of the great reforms that ought next to be\\naccomplished.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0220.jp2"}, "221": {"fulltext": "APPENDIX\\nINFORMATION CONCERNING BOOKS REFERRED TO IN\\nTHE TEXT\\nBanks, Louis Albert. My Young Man. Funk Wagnalls\\nCo., New York. 75 cents.\\nBrassey, Sir Thomas. Work and Wages. G. P. Putnam s\\nSons, New York. $1.\\nBrentano, Lujo, of University of Leipsic. The Relation of\\nLabor to the Law of To-Day. G. P. Putnam s Sons, New\\nYork. $1.75.\\nBuckle, Henry T. History of Civilization in England. Ap-\\npleton Co., New York. Two vols., $4.\\nButler, Nicholas Murray, of Columbia University. Address\\non The Education of Public Opinion. Pamphlet pub-\\nlished by University of Michigan, Ann Arbor, Mich.\\nClark, John Bates, of Columbia University. The Philosophy of\\nWealth. Ginn Co., Boston. $1.10.\\nDunbar, Charles F., of Harvard University. Theory and His-\\ntory of Banking. G. P. Putnam s Sons, New York. $1.00.\\nFalkner, Roland P., of University of Pennsylvania. Article\\non: Is Crime Increasing? July 1900 number of The Forum,\\nNew York. 35 cents.\\nGeorge, Henry. Progress and Poverty. Appleton Co. New\\nYork. $1.\\nGibbins, H. deB. Industrial History of England. Chas.\\nScribner s Sons, New York. $1.20.\\nIndustry in England. (Scribner s), $2.50.\\nGiddings, Franklin H., of Columbia University. Elements of\\nSociology. Macmillan Co., New York. $1.10.\\n*Any of these books may be ordered, if preferred, from the Institute of So-\\ncial Economics, Union Square, New York.\\n211", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0221.jp2"}, "222": {"fulltext": "2 12 APPENDIX\\nGiffen, Sir Robert. Progress of the Working Classes in the\\nLast Half Century. Pamphlet, order through the Macmil-\\nlan Co. New York.\\nGilman, Nicholas P., of Meadville Theological School. A\\nDividend to Labor. Houghton, Mifflin Co., Boston. $1.50.\\nGraham, William, of Queen s College, Belfast. Socialism,\\nNew and Old. Appleton Co., New York. $1.75.\\nGunton, George,* President Institute of Social Economics.\\nPrinciples of Social Economics. G. P. Putnam s Sons,\\nNew York, $1.75.\\nWealth and Progress. Appleton Co., New York. $1.\\nTrusts and the Public. (Appleton s.) $1.\\nEconomic Basis of Socialism. Ginn Co. Boston.\\nPamphlet, 10 cents.\\nEconomic Heresies of Henry George. Article reprinted\\nfrom The Forum in pamphlet form; 10 cents.\\nHadley, Arthur T., President Yale University. Economics,\\nG. P. Putnam s Sons, New York. $2.50.\\nRailroad Transportation; Its History and Its Laws.\\n(Putnam s.) $1.50.\\nHarris, George, President Amherst College. Inequality and\\nProgress. Houghton, Mifflin Co., Boston. $1.25.\\nHearn, William Edward. Plutology; or the Theory of the\\nEfforts to Satisfy Human Wants. Originally published by\\nthe Macmillan Co., New York, but now out of print. Large\\nlibraries may have it.\\nHolland, Frederick May. Liberty in the Nineteenth Century.\\nG. P. Putnam s Sons, New York. $1.75.\\nHowell, George. The Conflicts of Capital and Labor. Mac-\\nmillan Co., New York. $2.50.\\nLubbock, Sir John. Origin of Civilization. Appleton Co.,\\nNew York. New and enlarged edition, $5.\\nMallock, William H. Classes and Masses. Macmillan Co.,\\nNew York. $1.25.\\nLabour and the Popular Welfare. Macmillan s. $1.25.\\nMarshall, Alfred, of the University of Cambridge. Economics\\nof Industry. Macmillan Co., New York. $1.\\nMill, John Stuart. Principles of Political Economy. Apple-\\nton Co., New York. Complete, 2 vols., $4; abridged edi-\\ntion, $3.50. One-volume edition also published by Long-\\nmans, Green Co., New York, at $1.25.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0222.jp2"}, "223": {"fulltext": "APPENDIX 2 13\\nMulhall, Michael G. Industries and Wealth of Nations.\\nLongmans, Green Co., New York. $3.\\nRicardo, David. Principles of Political -Economy and Taxa-\\ntion. Macmillan Co., New York. $1.50.\\nRae, John. Contemporary Socialism. Chas. Scribner s Sons,\\nNew York. $2.50.\\nSchulze-Gaevernitz, G. von. Social Peace A Study of the\\nTrade-Union Movement in England. Chas. Scribner s Sons,\\nNew York. $1.25.\\nSchloss, David F. Methods of Industrial Remuneration. G.\\nP. Putnam s Sons, New York. $2.50.\\nSeligman, Edwin R. A., of Columbia University. Essays on\\nTaxation. Macmillan Co., New York. $3.\\nSmith, Adam. Wealth of Nations. G. P. Putnam s Sons,\\nNew York. $1.25.\\nStarr, Frederick, of the University of Chicago. Some First\\nSteps in Human Progress. Curts Jennings, Cincinnati.\\nStatesman s Year Book. Historical and Statistical Annual of\\nthe World. Edited by J. Scott Keltic Macmillan Co., New\\nYork. Issued annually, $3.\\nU. S. Census Reports. In most libraries not for sale.\\nU. S. Senate Report of 1893 on Prices, Wages and Transpor-\\ntation. In many libraries not for sale.\\nWalker, Francis A. The Wages Question. Henry Holt\\nCo., New York. $3.50.\\nLand and Its Rent. Little, Brown Co., Boston. 75 cents.\\nWebb, Sidney and Beatrice. History of Trade-Unionism.\\nLongmans, Green Co., New York. $5.\\nWood, Henry. The Political Economy of Natural Law. Lee\\nShepard, Boston. $1.25.\\nWright, Carroll D. Outline of Practical Sociology. Long-\\nmans, Green Co., New York. $2.\\nIndustrial Evolution of the United States. Chas. Scrib-\\nner s Sons, New York. $1.25.", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0223.jp2"}, "224": {"fulltext": "INDEX\\nAgricultural life, beginnings of to\\nAnarchism 141\\nArkwright s spinning frame 11\\nBanking, factor in exchange 49, 52\\nbetter system of 196\\nBellamy, Edward; Looking Backward, 139\\nBarter 47\\nBusiness depressions (see Panics)\\nCapital, what it is 18, 36\\n(see Corporations)\\nCapitalistic production 39\\nCartwright s power loom 11\\nCharacter, effect of socialism on 147, 149\\n(see Individual Betterment)\\nCharity, effect on wages 90\\nChildren, factory: education of 203\\nCitizens, good and bad 5\\nCitizenship, duties of 206\\nCommunism 141\\nCompetition, effect of 73, 121\\nConsumption, object of 55, 60\\nproductive consumption 58, 60\\npublic and private 56\\nsocial effects of 56\\nstatistics of 196\\nuseful and wasteful 58\\nCooperation, experiments in 145, 146, 167, 174\\nsuccess of mercantile 168\\nwhat it is 166\\nCorporations, effect on production 42, 45\\nbusiness depressions and 196\\nCost, of production 67, 70, 71, 75\\nof utilizing land 157\\nCredit, an instrument of exchange 49\\nCrompton s mule frame 11\\nDepressions (see Panics)\\nDesires, cause of production 29\\neffect on wages 88\\n(see Habits)\\n214", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0224.jp2"}, "225": {"fulltext": "INDEX 2 I 5\\nEconomic education, need of 6, 181, igo\\nEconomics, early meaning of i\\n(see Social Economics)\\nEducation, effect on production 31\\nof factory children 203\\nEquality not feasible 149\\nExchange, beginnings of 47\\nFactory methods 39\\nFactory system, rise of 12\\nFamily, basis of wage rates 98\\nFamily life, origin of 1, 7\\nGeorge, Henry 154, 164\\nGroups, earliest social 1, 7\\nlaborers must act in 176\\nwages fixed by 99, 187\\nHabits, effect on production 30\\neffect on wages 88\\n(see Desires)\\nHargreaves spinning jenny n\\nImmigrants, wages of 101\\nIndividual betterment 205\\n(see Progress)\\nIndividualism (see Liberty)\\nIndustrial life, social effects of 9, 12\\nIndustrial revolution, The 11\\nInterest, how determined 114, 117\\nhow it arises 113\\nis not a tax 115\\nsimilar to rent 112\\nwhat it is 82\\nLabor, cheap labor is dearest 76\\ndistinct from wealth 18\\ndivision of 37\\ndoes not produce all wealth 129\\neducation of 181, 190\\neffects of machinery on 40, 45\\nfactor in production 36\\nhand-labor era 37\\nhours of 202\\nits share in production 131, 136\\nlegislation for 179\\norganizations of (see Trade Unions)\\nLand, factor in production 37\\ncost of utilizing 157\\nvalue of 155", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0225.jp2"}, "226": {"fulltext": "2l6 INDEX\\nLiberty, growth of 8, 133\\npreservation of 141, 149, 150\\ntrade unions and 183\\nLubbock, Sir John 8\\nLuxuries not wasted wealth ^8\\nMachinery, effects on labor 40, 45, 95\\nManufacture, beginnings of 10, 38, 44\\nMiddlemen, necessity of 51\\nMill, John Stuart 18, 25\\nMoney, convenience of coins 49\\nfirst use of 48\\nNature, agent in production 36\\nOccupations, social effects of 9, 12\\nPanics, causes of 193\\nremedies for 195\\nPastoral life 10\\nPersonal qualities not wealth 18, 22\\nPiece-work, wages under 94, 95\\nPoint of view in economics 3\\nPolitical economy, first use of 1\\n(see Social Economics)\\nPolitics, character of 2\\nPoverty, relative decrease of 136, 140, 201, 209\\nsingle tax could not abolish 160\\nPrice (see Value)\\nPrices, decline of 202\\nsingle tax and 161\\nProduction, capitalistic 39\\n-\u00e2\u0080\u0094causes of 29-31\\ncheap and dear 75\\ncost of 67, 70-72, 75\\neffect of high wages on 32\\nfactors in 36\\nformer ideas of 24\\nlimited by market 36\\nmeaning of 24, 27\\nProfits, distribution of 122, 125\\nhow they arise 7 r\\nnecessary to progress 120\\nno average rate 119\\nnot a tax 123\\nrestore spent capital 126\\nwhat they are 83, 119\\nProfit-sharing 171, 173\\nRB a a f", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0226.jp2"}, "227": {"fulltext": "INDEX 2 17\\nProgress, causes of 9\\npromotion of 206\\nstatistics of 200-205, 209\\nsuccessive steps in 133, 140, 147, 163\\ntest of 200\\nwhat it is 8\\nPublic ownership 133, 142, 150\\nPublic policy, test of 4\\nRent, does not absorb all gain 158\\nhow determined 105\\nnot a tax 108, 109\\nnominal and economic 105\\nwhat it is 82\\nSanitation, progress in 205\\nSavage life 13\\nSentiments (see Habits)\\nSingle tax, errors of 109, 154, 157, 158, 160, 163, 164\\nimmorality of 159\\n\u00e2\u0080\u0094theory of 154\\nSmith, Adam 1, 18, 24\\nSocialism, different from anarchism and communism 141\\neconomic effects of 143, 150\\n\u00e2\u0080\u0094effects on individual life 147, 149\\nexperiments in 145, 146, 167, 174\\nhistory of 132\\nproposed methods of 135, 142\\n\u00e2\u0080\u0094theory of 128, 129, 131\\nwhat it promises 139\\nSocial economics, meaning of 1, 4\\npoint of view of 3\\nwhat it includes 2, 3\\nStandard of living 87, 98, 197\\nStatesmanship, duties of 197, 198, 206\\nSupply and demand, theory of 64\\nSurplus not part of cost 7\u00c2\u00b0\\nTowns, early English 14 15\\n\u00e2\u0080\u0094rise of 11\\nTrade unions, advantages of 182, 186, 189\\neconomic character of 185\\n\u00e2\u0080\u0094federation of 181,185, 188\\nindividual liberty and 183\\nin England 177\\n\u00e2\u0080\u0094in the^United States 180\\nmistakes and needs of 188\\n\u00e2\u0080\u0094objects of 176, 185\\nTransportation, part of production 50\\n\u00e2\u0080\u0094in the United States 53", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0227.jp2"}, "228": {"fulltext": "2l8 INDEX\\nTruck system 204\\nTrusts (see Corporations)\\nUtility, different from value 63\\nUtopia, Sir Thomas More s I3q\\nValue, fixed by cost of production 67, 72, 78, 79\\nof land 155\\nrequirements of law of 66\\nsame as price 62\\nutility and 63, 68\\nVariety, and progress 10, 12, 29\\n(see Progress)\\nWages, country and city 99\\neffect on production 32\\nfixed by standard of living 87, 98; of groups 99\\nindex of civilization 87\\ninfluences that affect 88, 90\\nlow wages dearest 76\\nof immigrants 101\\nprofit-sharing and 171\\nreal and nominal 86\\nrise of 202\\nsingle tax and 161\\ntaxes on 102, 103\\nunder piece-work 95\\nwhat they are 81\\nwomen s wages 0/\\nWages-fund a myth 92\\nWants (see Desires)\\nWatt s steam engine 12\\nWealth, consumption of 55\\ndistinct from man 18\\n1 distribution of 81, 131\\nkinds of 17\\nlabor does not produce all 129\\nproduction of 24, 29, 36, 47\\n\u00e2\u0080\u0094what it is 17, 21", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0228.jp2"}, "229": {"fulltext": "", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0229.jp2"}, "230": {"fulltext": "", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0230.jp2"}, "231": {"fulltext": ",0^\\nf*\\nA\u00c2\u00a7\\nA\\n*P^\\n0OBISBROS. \u00e2\u0099\u00a6^T\\ni, LIBRARY BINDING\\nST. AUGUSTINE V\\n\u00e2\u0080\u009eH O", "height": "3311", "width": "2100", "jp2-path": "outlineofsociale00gunt_0231.jp2"}, "232": {"fulltext": "LIBRARY OF CONGRESS", "height": "3648", "width": "2328", "jp2-path": "outlineofsociale00gunt_0232.jp2"}}