Part 44

5. What is the socialists’ idea as to the profits which a business manager receives for his services? Page 123.

6. State three theories which have been developed to explain the distribution of wages. Page 124.

7. How was the wealth of the United States distributed in 1893? Page 125.

8. Are the poor becoming poorer? Page 127. 411

Saving and Spending.

1. What is the relation between saving and spending? Page 129.

2. What is the real goal of all rational economic endeavor? Page 130.

3. Give the arguments which are put forth condemning luxury. Page 132.

4. What arguments are put forth to show that luxury is an indispensable stimulus to progress? Page 133.

5. What is the attitude toward luxury taken by economists? Page 133.

6. What is meant by “a socialization of luxury”? Page 135.

7. Give an illustration of a waste in consumption due to lack of knowledge and training. Page 135.

Money and Banking.

1. What determines the value of money? Page 137.

2. Give the attempts made in the United States to create a slow, steady inflation. Page 139.

3. State three arguments in favor of bimetallism. Page 139.

4. Where can we find a sufficient answer to the arguments in favor of government paper money? State the answer. Page 141.

5. Of what does the money of the United States consist? Page 141.

6. What essential quality of good bank money do bank notes lack? Explain. Page 143.

7. Enumerate the suggestions which have been made as to a new basis for the issue of bank notes. Page 143.

8. Name two other problems connected with the banking system of the United States. Page 144.

Transportation and Communication. 412

1. Describe the three kinds of discrimination. Page 147.

2. How do the state commissions differ in power? Page 148.

3. Explain the monopoly character of express companies. Page 149.

4. Show the importance of the internal natural waterways of the United States. Page 151.

5. What problem is offered by our canal system? Page 151.

6. Show why the causes for the decline in tonnage of American vessels are economic rather than political. Page 152.

Taxation and Tariff.

1. What is John Fiske’s definition of taxes? Page 154.

2. What rules of taxation were laid down by Adam Smith? Page 154.

3. What is the benefit theory of taxation? How does this theory fail? Page 155.

4. What is the faculty principle of taxation? Page 155.

5. What measures have been suggested as to how to measure ability? Give the objection to each. Page 155.

6. What are the arguments supporting progressive taxation? Page 156.

7. Where does the Federal Treasury derive its revenue? Page 157.

8. What tax is the main reliance of the state and local governments? Page 158.

9. Describe an ideal system of taxation for the United States. What is the advantage of such a system? Page 159.

10. What is the character of the considerations in determining tariff policies? Page 160.

11. Explain the home market argument in support of 413 protection; the wages argument. Page 161.

12. What is the doctrine of comparative costs? Page 162.

13. How do free traders answer the home market argument? The infant industries argument? Page 162.

The Functions of the Government.

1. Name the economic functions of the Government. Page 163.

2. What is the theory of anarchism? Page 165.

3. Explain Herbert Spencer’s theory of extreme individualism. Page 165.

4. What is the theory of government most generally held by economists and writers in the United States? Page 166.

5. In what country is the culture state theory very generally held? Explain the theory. Page 167.

6. What does the view known as state socialism advocate? Page 167.

7. Give Professor Ely’s definition of socialism. Page 167.

8. Explain the cardinal and distinctive element of socialism. Page 168.

9. Enumerate the socialists’ criticisms of our present methods of production. Page 168.

10. What do socialists urge as bases of distribution? What basis do socialists of today agree is the best one to meet the requirements of justice? Page 170.

11. What were Henry George’s arguments against private ownership of lands? Page 171.

12. What is the real issue as to the municipalization of local public utilities? Page 172.

Economic Progress.

1. What improvement has been made in the condition of the working class in the United States? In Great Britain? Page 173.

2. What factors have aided in the enormous expansion 414 of production? Page 174.

3. Give two reasons why labor has not profited more by the great increase of wealth. Page 175.

4. State some lines along which reform is needed. Page 176.

Manufacturing.

1. How does the word “manufactures” as it is ordinarily used today differ from its original meaning? Page 180.

2. What conditions have made western Europe and the eastern part of the United States great manufacturing sections? Page 183.

Modern Manufacturing Systems.

1. What new occupations did the factory system develop? Page 186.

2. How did the use of steam affect the location of factories? Page 187.

3. What factors made the price of silk so high before the nineteenth century? Page 188.

4. Why is Gary, Indiana, an advantageous location for a manufacturing center? Page 189.

5. How is it possible to operate by water power, a factory located a hundred miles from a waterfall? Give two examples. Page 190.

6. Illustrate the use of electricity in a typical modern factory. Page 192.

Use of Machinery in Manufacturing.

1. Describe the first machine used in the making of yarn. Page 193.

2. Enumerate some of the machines invented in the eighteenth century. Page 195.

3. How did the invention of machinery affect the importation of cotton? Page 196.

4. Show the need of machinery in the iron and steel 415 industry. Page 197.

5. Describe the earliest process of making pig iron. Page 198.

6. What is the Bessemer process of making steel? Page 201.

7. What have been the causes of the great development of the iron and steel industry? Page 201.

8. What is the difference between English and American steel works? Page 202.

Development of the Factory System.

1. State reasons for the early development of the factory system in England. Page 204.

2. Why was the United States slow about developing manufacturing industries? Page 205.

3. Why is any comparison of the value of the manufactures of the United States with that of other countries defective? Page 210.

4. Name an article which is the product of one factory but which becomes the manufacturing material of another. Page 211.

5. What factors have contributed toward making the United States the world’s greatest manufacturing nation? Page 212.

6. How can it be judged as to whether the value of manufactures of a country is in excess of the consuming capacity? Page 214.

Capital in Manufacturing.

1. Show the part capital plays in building up a company. Page 214.

2. What are the advantages gained by having a business in the hands of a company or corporation? Page 215.

3. Compare the durability of gold with that of other products. Page 217.

4. What was the amount of capital employed in 416 manufacturing industries in 1850? In 1905? Page 218.

5. How did the Census of 1905 differ from previous censuses in the matter of manufacturing establishments? Page 219.

6. How does the growth in capitalization rank with that of the other important branches of manufacturing? Page 220.

Trusts and Combinations.

1. What principle was the cause of the origin of the modern company or corporation? Page 222.

2. Explain the provisions of a pool. Page 223.

3. How were the defects of the pool overcome? Page 224.

4. What are the advantages of a trust or combination? Page 225.

5. What has been the effect of trusts on prices? On wages? Page 226.

6. Name and classify according to product the companies of which the United States Steel Corporation was formed. Page 228.

The Iron and Steel Industry.

1. What was the number of establishments for the iron and steel industry in the United States in 1880? In 1905? What does this show? Page 233.

2. What method was used by the early Germans for extracting the iron from the ore? By the English in 1700? By the early American colonists? Page 236.

3. Why was coke used in the smelting of iron ore in England much earlier than in America? Page 238.

4. How did the development of railways aid in the preservation of our forests? Page 239.

5. What is the puddling process? Why is it necessary? Page 240.

6. What process took the place of the puddling process? Page 241.

7. What is steel? How is iron obtained by the Bessemer 417 process made into steel? Page 245.

The Textile Industry.

1. What is the most important of the textile industries? Page 247.

2. Compare the value of textile manufactures in the principal countries of Europe during the period from 1800 to 1896, inclusive, with that of the United States during the same period. Page 247.

3. Define textiles. How are they made? Page 251.

4. What were the so-called “Manchester cottons”? Page 254.

5. Who invented the spinning jenny? What was its use? Page 255.

6. Up until the invention of the water frame, why was the making of cloth entirely from cotton impracticable? Page 256.

7. What was the spinning mule? By whom was it invented? Page 257.

8. What is the purpose of the cotton gin? Page 257.

9. What factors have made cotton the most important textile? Page 258.

10. Why is the cotton industry moving toward the South? Page 262.

Manufacturing Industries of the United States.

1. Why was manufacturing neglected by the early settlers of the United States? Page 263.

2. What manufactories sprang up in the nineteenth century? Page 266.

3. Name the four greatest producers of manufactures for exportation. Page 270.

4. When was the largest growth of agricultural exports in the United States? Of exports of manufactures? Page 272.

5. What articles are the chief requisites of 418 manufacturing? Page 272.

6. How do you account for the rapid growth of copper as an export of manufacture? Page 277.

7. Illustrate the fact that the United States does not need to invade foreign markets with its manufactures. Page 278.

8. Distinguish between the gross value of the factory product of manufactures and the net value of the same. Page 284.

9. Compare the growth of the exportation of manufactures with that of the production. Page 286.

10. Under what head does the Bureau of Statistics classify boots and shoes; flour; salted meats; illuminating oil; pig iron. Page 287.

Concrete and Steel.

1. How do concrete and steel supplement each other? Page 322.

2. Of what is the standardization of concrete applications indicative? Page 323.

3. What is a corrugated bar? Page 324.

4. Give an example showing the durability of the Hennibique construction. Page 326.

5. What advantages over the wooden bearing pile has the concrete bearing pile? Page 327.

6. How may the resistivity of usual concretes be reinforced? Page 329.

7. Explain the use of wales in reinforcing a water front. Page 331.

8. How are the bearing piles of a wharf in the tropics made? Page 332.

9. Enumerate various uses to which concrete has been put in construction. Pages 333, 334.

10. What is the problem of the concrete telegraph pole? How may this be overcome? Page 336.

11. How is the Corell tie made? The Percival tie? Page 337. 419

12. What part does steel play in the construction of the Gatun Locks of the Panama Canal? Page 337.

13. Give an illustration of the use of steel for molding concrete. Page 339.

Chemistry and the Industries.

1. Why has it been necessary to put industry on a scientific basis? Page 342.

2. Why is chemistry so closely related to the industries? Page 343.

3. Tell in your own words the story of the development of the soda industry. Page 344.

4. Name three important industries which grew out of the soda industry. Page 346.

5. Give an example of how science has led the way for industry. Page 348.

6. What are the great achievements before the chemistry of the future? Page 350.

The Producer-Gas Power Plant.

1. What was the drawback to the early development of the gas engine? Page 353.

2. Why was the suction producer not practical? Page 354.

3. What led to the introduction of the pressure producer? Page 355.

4. What is the advantage of the down-draft producer? Page 355.

5. What is the ideal relative efficiency of the producer-gas plant and the steam plant? The actual relative efficiency? Page 360.

6. What defects in producer-gas plants were learned from the inspection in 1908? Page 364.

7. Where are the producer-gas plants of England located? Page 366.

8. How can the price of power developed from fuel be 420 kept down? Page 369.

Efficiency in Shop Operations.

1. What is the reason for the failure of many cost systems? Page 371.

2. Upon what does the efficiency of a workman depend? Page 372.

3. What should be used as a standard for the measurement of time? Page 373.

4. When should a bonus begin? Page 375.

5. What effect does the giving of bonuses have on the efficiency of the foreman? Page 375.

6. What advantages are gained from having proper time cards for the workmen of a concern? Page 377.

7. To be successful, how should efficiency methods be introduced? Page 379.

The Bridge between Labor and Capital.

1. What is the chief cause at the bottom of all labor disputes? Page 380.

2. When and how was the labor problem brought about? Page 381.

3. What three methods of solution are proposed for the present problem of distribution? Page 382.

4. In your opinion which method is the best?

The Unemployed.

1. What is the central cause of the want of employment? Page 385.

2. Show the evil effect of ill-advised charity upon the unemployed. Page 387.

3. What does the practice of giving old-age pensions indicate as to the fairness of the distribution of the returns of production? Page 387.

4. Name three ways in which the problem of the unemployed 421 can be reduced. Page 389.

5. What are the effects of ignorance and indolence upon society? Page 391.

6. If employment were remunerative, what would be the results? Page 393.

7. What lines of industry should society court? Page 396.

8. What are the evils connected with industrial corporations? Page 397.

9. Summarize the remedies for the want of employment. Page 401.

INDEX

BUSINESS ECONOMICS

ACTS-- factory, 88, 89.

AGRICULTURE-- character of, in U. S., 14. most important branch of, 15. reorganization of, 15.

ANARCHISM-- theory of, 165.

AREA-- land, of U. S., 9.

BANKING, 142-145.

BAR-- corrugated, 324.

BARGAINING-- collective, 77.

BESSEMER-- process, 201, 241-246.

BIMETALLISM-- arguments in favor of, 139, 140.

BOARD-- of arbitration, 79. of conciliation, 79.

BONUS-- use of, 375.

BRIDGES-- construction of, 324-326.

CAPITAL-- and labor, bridge between (article), 380-383. in manufacturing, 214-222.

CEMENT-- Portland, 340.

CEREALS-- production of, in U. S., 15.

CHEMISTRY-- and the industries (article), 341-351. a utilitarian science, 341. how it creates industries, 348. how it influences industries, 342.

CHILDREN-- at work, 86-89.

CLASS-- wage-earning, 61.

COAL-- waste of, 352.

COMBINATION-- advantages of, 43, 225. causes of, illustrated, 227-230. effects of, 46-49, 226. upon competitors, 46. upon consumers, 48, 226. upon labor, 47. upon opportunity, 49. upon wages, 226. forms of, 223-225. in the railroad world, 146. methods of, illustrated, 227-230. phases of, 39, 40.

COMMISSION-- mandatory, 148. supervisory, 148.

COMPANIES-- express, monopoly character of, 149.

COMPETITION-- defined, 4. in modern industrial life, 4, 5.

CONCRETE-- and steel (article), 322-340. applications of, 324-339. as material of construction, 322. chimneys of, 328. effect of water on, 330, 333. rapidity of construction of, 330. resistivity of, 329.

CONSUMPTION-- economy in, 135, 136.

CO-OPERATION-- advantages of, 116, 117, 222, 223. consumers’, 114. defects of, 117, 118. producers’, 116.

CORN-- production of, in U. S., 16.

CORPORATION-- advantages of, to industry, 41, 215. industrial, 397. United States Steel, 44, 227-230.

COTTON-- gin, 257. manufacturing of, 247-262. production of, in U. S., 17, 304. world’s production of, 291.

CRISES-- credit theory of, 59. defined, 55. immediate cause of, 56. must be regarded as unpreventable, 60. over-production theory of, 38. periodicity of, 57, 58.

DISCRIMINATION-- kinds of, 147.

DISTRIBUTION-- of interest, 122, 123. of profits, 123. of rent, 122. of wages, 123, 124. of wealth, functional, 119-121. of wealth, personal, 120, 125-127.

DOMAIN-- public, 9.

DRY-FARMING, 11.

ECONOMICS-- practical (article), 1-178. progress in, 172-178.

EDUCATION-- industrial, 106-110.

EFFICIENCY-- application of, to department heads, 375-377. defined, 371. increased, illustrated, 374. in shop operation (article), 370-379.

ELECTRICITY-- applied to manufacturing, 190-192.

ENGINE-- gas, development of, 353-356.

EXCHANGES-- of natural products, 182.

EXPORTS-- from U. S., 269-288.

FACTORY-- acts, 88, 89. described, 31. system. (See System.) town, rise of, 186.

FARMS-- number and size of, 11.

FISHERIES-- wasteful use of, 18, 19.

FREE TRADERS-- arguments of, 162.

GOLD-- production of, 216, 217.

GOVERNMENT-- functions of, 163-172.

HOMESTEAD-- defined, 9, 10.

INDIVIDUALISM-- extreme, 65, 165. modified, 166.

INDUSTRY-- causes of rapid development in, 30. cotton, 247-262. how carried on, 41. iron and steel, growth of, 198-202, 230-246. localization of, 33. manufacturing. (See Manufacturing.) relation between chemistry and, 341-351. soda, 344-346. specialization of, 32, 33. textile, 247-262.

INSURANCE-- against sickness and old age, 100. compulsory accident, 99, 100.

IRON-- processes of making, 198-201, 235-246.

IRRIGATION, 10, 11.

LABOR-- American Federation of, 70. and capital, bridge between (article), 380-383. child, 80, 86-89. division of, 32, 33. Knights of, 70. legislation, purpose of, 68. organizations, 68-77. previous systems of, compared with modern wage system, 64. sale of, peculiarities of, 66, 67. woman, 80-86.

LEGISLATION-- factory, 97. labor, purpose of, 68. of child labor, 87-89.

LIBERTY-- industrial, 5. natural, theory of, 166.

LIVE STOCK-- production of, in U. S., 16.

LUXURY-- attitudes toward, 132-134. socialization of, 135.

MACHINERY-- evils of, 101-106. in iron and steel industry, 196-201. in textile industry, 196.

MACHINES-- carding, 256. early forms of, 193-196.

MANOR-- English, 1-3. characteristics of, 2, 3.