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ties, because his study of distribution begins with gain may under certain circumstances accrue to the bargaining process which goes on in actual life labor, it is clear that we cannot speak of an exprobetween buyer and seller. Competition does not priation of the product of labor by capitalists and in such a case fix the price of commodities, but land-owners. The distribution of the surplus will only the limits below which the seller will not go depend upon the relative supply of the three factors and above which the buyer will not go. Between of production. If labor is scarce as compared to these two limits the actual price is determined by capital and land, the surplus will go to labor, and the superior bargaining power of a single buyer or we might with equal fairness speak of the exploitaseller. This leads to an element of forced gain tion of capital by the laborer. There is no exthat accrues to that side of buyers or sellers which ploitation involved in giving to any factor the share possesses the shrewdest bargainer. In addition to which the final unit produces. this, there is a differential gain shared in by all buyers and sellers whose subjective valuations lie The recent interest in trusts has brought forward beyond the limits within which the price is fixed. numerous books, pamphlets, and magazine articles In a static state, such as is described by Professor dealing with that interesting and perplexing probClark, no element of forced gain could appear. lem. Among the discussions of this topic most Each party to the bargain in fixing a price would favorably received have been the recent books by secure the full measure of its productivity. Applied Professor Jenks and Mr. Collier, which must here to the case of the factors of production, free com- be dealt with more briefly than they deserve. Both petition tends “to give labor what it creates, to works are written for the general reader rather capital what it creates, and to entrepreneurs what than for the advanced student in economics, and the coordinating function creates.” In both theories, with few exceptions they contain little that has not the element of differential gain still remains. If, been made available to the student by earlier and for example, on a given amount of land a number more complete investigations. The scope of the inof units of labor of equal productivity be applied quiry is practically the same in each of the volunit by unit, the productivity of the labor will umes, and the two authors agree in the main in diminish after a certain point has been reached. their conclusions. Both writers admit that the chief As the units of labor are supposedly equal, the cause of the growth of industrial combinations in product of tbe final unit will fix the wages of each the past quarter century has been intense and often and every other unit, and a rent will accrue to land wasteful competition. Both authors also agree in as a result of the surplus created by the application the statement that special privileges such as patents, of the earlier units. This is rent in the Ricardian tariff legislation, and railway discriminations, have sense, a differential gain secured by land as a result often aided in this growth. Professor Jenks is, of the diminishing productivity of labor upon the however, more logical in his attitude toward these land. But we may have the same thing in the privileges than is Mr. Collier. For the latter, havcase of capital. The application of successive units ing admitted that competition is the chief and sufof labor to a fixed amount of capital will result in ficient cause of trusts, maintains that the abolition differential gains which accrue in this instance to of these special privileges would cause the disapcapital. Reversing the process and applying units pearance of the majority of the trusts. It should of capital to a given amount of labor, we find capital also be noted that Professor Jenks views with more subject to the same law of diminishing returns, and concern the disappearance of competition as a force labor in this case secures a surplus, rent. This ex- which controls prices, than does Mr. Collier. Both tension of rent by Professor Clark to all the factors authors, however, regard potential competition as of production is exactly paralleled in the discussion in the main a sufficient safeguard for the consumer by Mr. Hobson. Corresponding to the forced gain of trust-made commodities in cases where neither in the sale of commodities, there may be a marginal legal nor natural monopolies exist. A study of the rent in the sale of the factors of production which prices charged by some of the great industrial comis not the same as the differential rent explained binations such as the sugar, whiskey, kerosene, tinby Ricardo as accruing to land and by Professor plate, and wire and steel trusts, made by Professor Clark as due to all the factors of production. We Jenks for the United States Industrial Commission, have already stated that Professor Clark does not leads him to the conclusion that while prices have find this forced gain or marginal rent existing in a fallen since the establishment of these combinations static society. What we here wish to emphasize is the general level of prices is somewhat higher than that both writers agree in extending the conception would have probably prevailed had competition had of differential rents to labor and capital as well as full play in these industries. The statements often to land. Mr. Hobson holds that we cannot speak made by trust managers that industrial combinaof a margin of employment for land any more than tions have made the market for their products more we can for capital and labor. If we can say that steady seems to have little justification. The tempthe worst land in cultivation bears no rent, we can tation to raise prices, or to maintain them at a high just as well say that the worst placed capital gets level, is so strong that when once a monopoly has no interest and the worst employed labor receives been established few trust managers have been able no wage. If this theory be true that a differential to resist the desire for high profits. This in the case of capitalistic monopolies has inevitably re- of these great corporations responsible to the full sulted in the bringing into the field of new capital amount of their property instead of giving to them to compete with the trust, and before the latter the limited liability conceded to other stockholders. could regain its former supremacy it has been ob- In case these remedies proved insufficient, he would liged to buy up or coerce these competing estab- have acts of monopoly declared a crime, leaving to lishments.
the courts the difficult task of deciding whether or The most serious menace to the public from not monopoly really existed. the trusts is probably to be found in the methods by which these combinations are being organized Professor Edward D. Jones, of the University of and manipulated. The principal sufferer is not the Wisconsin, is responsible for a well-written little consumer but the investor. The great success of volume on “Economic Crises.” This is the first certain of these combinations has brought into the systematic treatment of this subject in its entirety field of corporation finance within recent years a that we have had in English. Professor Jones class of persons known as promoters, whose business does not undertake to discuss at any length particconsists in the efforts to form combinations among
ular crises and their causes. His work is chiefly a industrial establishments which have hitherto been review of the theories of crises which have been subject to the control of competition. In this way brought forward by other writers, and a critical industrial consolidation bas been brought about in examination of these theories in the light of our many cases where it would not have taken place, at present economic knowledge. The treatment is least for some time to come, had natural forces alone somewhat fragmentary in character, and the author controlled. The promoter is usually paid for his ef- is perhaps a little too dogmatic in his own stateforts by common stock issued beyond the capitalized ment of opinions, but on the whole the discussion valuation of the property of the consolidated com- of the various theories is made in an impartial panies. In addition to receiving preferred stock, manner, and the conclusions seem to be the result whose par value equals the total capitalized value of of sound reasoning. There is an able chapter on their property, the owners of the establishments thus the periodicity of crises in which the author, while consolidated usually receive a bonus in the shape of not denying the existence of periodicity, claims that large amounts of common stock. There is further. the proof of such regularity in the appearance of more the underwriter, usually a banker, who under- crises is not yet sufficient, and that no explanation takes the sale of the stock. He also receives his pay for such periodicity has been offered which is at all in common stock. It is not difficult to see that inadequate. Professor Jones lays great stress on the this way trusts are capitalized far beyond the limits abuse of credit as the cause of crises, but points out
hich a prudent financial administration would that there is a danger in attributing crises to a warrant. One of the most prominent of our present single kind of credit abuse such as banking specuindustrial combinations has in this way been
lation. In the final chapter on the “ Psychology italized at $50,000,000, while the total selling value of Crises,” the author studies the individualistic of the properties consolidated was only $18,000,000. motives underlying crises. These industrial dis. Excessive capitalization means stock and bank turbances he declares to be due in large degree to speculation, losses to investors, dangers to consumers a tendency toward speculation, and to undue optimfrom an attempt to raise prices so as to pay divi- ism in regard to the outcome of business projects. dends on the stock thus issued, instability to busi- The chief preventives the author finds in the subness, and perhaps a panic brought about by the ordination of economic interests to other motives collapse of these undertakings.
and in such an increase of information concerning Of the remedies proposed, the one most insisted the facts of the modern industrial world as is to be upon by both the above writers is publicity in re- gained through commercial education. These remgard to the finances and the methods employed by edies, however, furnish only a partial solution. these combinations. Publicity alone would prob- “ The final extinguishment of crises will come ably cause the disappearance of some of the chief through the progress of general economic evolution evils connected with trust organization and man- rather than as the result of the application of agement, and until we have this publicity, as Pro- specific remedies." fessor Jenks well says, we cannot proceed wisely in The title of Dr. Fairchild's book, “ Rural Wealth the application of further remedies. Both writers and Welfare,” the experience of its author who for apparently admit that the trust has brought much thirty-five years has been connected with agricul. good and that it has come to stay. Prohibition bas tural colleges, and the place of the treatise in everywhere proved a failure, and is not recom- “ The Rural Science Series," all would lead one to mended by either writer. The abolition of the expect that the book was a treatise on agricultural special privileges which have aided in the growth economics, for which there is at present a genuine of trust formation, and the prevention of over- need. It is extremely disappointing, therefore, to capitalization, are of course advocated wherever the find that Dr. Fairchild's book is only another treatremoval of these special privileges would not cause ise on elementary economics, differing in no way a serious derangement of industry. Mr. Collier from the average text-book on that subject, except would add to these remedies by making directors that perhaps the majority of the illustrations are
taken from farm life. The author has prepared | Unions, and is a firm believer in the justice of the some interesting and valuable charts intended to sliding scale. Mr. Carnegie deplores strikes, but show that conditions of demand and supply are the calls upon employers to observe patience when controlling factors in the making of prices of agri- strikes occur, and he recognizes the equity of the cultural commodities, and that speculative move- striking man's commandment, “ Thou shalt not take ments have exerted but little influence. He is wise thy neighbor's job.” Mr. Carnegie's attitude on in his insistence on the value of accurate crop sta- the question of Imperialism is well-known, and tistics to the agricultural class, and points out that scarcely requires comment. He deals fairly with such information would “do more to destroy the his opponents, and gives them credit for sincerity. demoralizing force of mere speculation than any pos- His views concerning British administration in sible legal enactment.” There are some sensible India, and the administration of tropical countries chapters on banking, insurance, and the tariff, and in general, are doubtless equally sincere, but they here and elsewhere there are good suggestions as to are opposed, it should be said, to the opinions of methods by which farmers may
make use of division men who have observed less superficially and have of labor, credit associations, and other means by studied the question more profoundly. Mr. Car. which modern business has attained to successful negie opposes the imperial federation of Britain organization and results. The value of these sug- and her colonies, a scheme which he regards as gestions leads one to wish that this part of the work impracticable as well as undesirable, but he dreams had been more fully worked out, leaving to other of an Anglo-Saxon alliance in which all Englishtreatises the statement of elementary principles speaking nations shall share. Nothing, however, common to the whole field of economics. Dr. Fair. bas done so much to hasten the realization of such child takes an optimistic view of the drift of the a project as the recent cooperation of the two great farming population into the cities. He considers English-speaking nations in the far East, a movethis merely a means of readjusting industrial ar- ment which could not have taken place had it not. rangements, and one which is made possible and been for our acquisition of Eastern possessions necessary by the wide use of agricultural machinery which Mr. Carnegie bas so strenuously and vigorwhich has enabled three men to do the work that ously opposed. fourteen did forty years ago.
Even the abandon. “War and Labour” is another of the numerous ment of New England farms he does not consider attempts made by political philosophers to promote a great social loss, though it may have injured in- universal peace. The author, M. Anitchkow, is, dividuals. “ These lands will find a profitable use however, scarcely an idealist. He does not think in the wood lots throughout the East and in grazing that this peace can be made a never-ending one. ranches through the West, with slight permanent “War,” he says, “is the lot of mankind and the loss. They are not signs of poverty but of a devel- inevitable destiny of nations.” In the first part of oping trait, just as the abandoned country woolen his treatise, the author reviews and criticises the mills tell the story of immense growth in factory various proposals which have been made by other methods."
writers to secure the same end. He decides that Mr. Carnegie's book, “ The Gospel of Wealth,” neither the increase of armaments, the greater deconsists of a group of essays, all of which have structiveness of modern artillery, the efforts of appeared in English or American magazines or peace societies, nor international agreements and periodicals. They cover a wide range of subjects courts of arbitration, will suffice to prevent the biographical, economic, social, and political, but outbreak of war; and he supports his statements may perhaps be conveniently divided into three with an abundance of historical evidence to show groups. The first five essays deal with social and that the above mentioned methods have in the past industrial questions, the next two with the recent failed to achieve this end. In Chapter I. of Book II. political tendencies in this country, while the last the author strikes the keynote of his argument. It four deal with English political problems and ten- is his claim that the prime cause of war in modern dencies. Mr. Carnegie's well-known views con- times is no longer religious or ethnographic differcerning the use to be made of large accumulations ences, but trade rivalry, which has led to modern of wealth are set forth in the essay which gives the tariffs, these imposts being the chief cause of title to the book. Mr. Carnegie's natural attitude international irritation. The administration of as a man who has accumulated an immense fortune, tariffs, the author endeavors to show, differs in no toward the accumulation of wealth, leads him to material respect from the preliminaries to war. attach great importance in the social and industrial With the improvement in means of communication sphere to individual leadership. He is inclined this administration becomes more difficult and more even at this late day to agree with Adam Smith warlike in character. The chief use of troops in that enterprises undertaken by joint stock companies some countries even now, is to protect customs adare likely to prove failures unless they are con- ministration. The abolition of tariff restrictions trolled by a few able men. For the same reason would remove the chief cause of modern internathe does not place much confidence in cooperative ional hostility. The author in his hostility to tariff enterprises as a means of solving the labor problem. legislation would not even allow of fiscal tariffs, He takes a sympathetic attitude toward Trade- preferring to resort to direct taxation. He is much
influenced by Henry George, and one of his best race. It was a true instinct which led the people chapters is little more than a re-statement of Henry to regard him, not as a being of superior clay, but George's doctrine contained in “ Protection and as “ Unser Fritz" - our Fritz. An ardent chamFree Trade.” He is also much influenced by Leroy-pion of tolerance, he opposed every exercise of arBeaulieu, but claims that the great French econo- bitrary power; a master of the military art, he mist has not dared to go the whole way in his abhorred war, and the laurels of victory turned to advocacy of a universal market and absolute free- the cypress of mourning in his grasp. "I detest trade. Freedom of trade and freedom of migration, this butchery,” he sadly remarked on the morrow says M. Anitcbkow, would remove the only causes of triumph ; “I have never longed for war laurels, of contemporary antagonism. The safety of foreign and would willingly have left such fame to others investments would thus be guaranteed, for the without envying them.” At once the people's choice cause of jealousy would be removed. The third and the representative of the hereditary principle, part of the book seems to have little relation to he was indeed “every inch a king." His mantle what has gone before. It consists in the main of has scarcely fallen upon his bustling and eccentric loosely constructed arguments for freedom in in- successor - who has, however, by no means fulfilled dustry, technical education, industrial cooperation, the unflattering expectations formed of him. Mr. government ownership of railways, etc. The author Whitman's book is interesting and full of meat, and wanders in a dreamy sort of fashion from one ideal it is presentably got up. to another, believing them all to be resultants of his proposed reforms, without stopping to indicate
Mr. George Parker Winship’s how these reforms are to realized, or why they are
bibliography “Cabot Bibliography” (Dodd) is
of the Cabots. to be considered inevitable.
an exhaustive and scholarly piece of M. B. HAMMOND. work. An introduction of some fifty pages gives a
concise account of what is actually known about the Cabots. Mr. Winship has distinguished clearly
between the historical value of strictly contemporary BRIEFS ON NEW BOOKS.
evidence and that of the later gossip of the historMr. Sidney Whitman's “Life of the Emperor
ians, whose personal acquaintance with Sebastian Frederick's life Emperor Frederick” (Harper), ed- Cabot has blinded us to the carelessness and indiand character. ited from the German of Margaretha rectness of their testimony. Upon the same prinvon Poschinger, appears simultaneously with the ciple, he has relegated the legends of the so-called final instalment of the more voluminous original. "Cabot map "to a position of secondary importance,
“ Mr. Whitman bas selected from Fraulein Posch- no certain connection between the map and the inger’s mass of material such portions as seemed navigator having been established. The bibliomost likely to interest English readers, and he has graphy proper consists of two parts,
a list of eliminated so far as possible all second-hand com- early documents, books, and maps relating to the ment and appreciation. The volume is thus in the Cabots, and a list of the later books, articles, and main composed of conversations, letters, and per- addresses that have been printed about them, sonalia of monarchs, soldiers, savants, statesmen, containing altogether nearly six hundred titles. and men of letters, so arranged as to form an ac- The titles are supplemented by excellent explanacount of the public and private life of the Emperor tory and critical notes, which constitute the chief told in the words of witnesses able in most cases to value of the work. We have but one fault to find speak directly to the facts. The inherent defects, with the bibliography, and that respects its arrangeas well as merits, of biography made on this plan ment in alphabetical order. In our opinion a are obvious ; and Mr. Whitman is at least to be chronological order would have much better served credited with a very good piece of literary joiner. the purpose of the lists. It would have disclosed work, in which the materials are sound and well- the original material in the order of historical sechosen, and put together in a workmanlike way. It quence, and have distinguished more clearly its may be added that in many cases the documents so relative value. It would have grouped the later laboriously assembled by the pious care of Fraulein discussions around the successive storm centres of Poschinger have an interest of their own to which the Cabot controversy, and have developed naturthat which they owe to their bearing on the career ally its origin and subsequent course. An index of or character of Emperor Frederick is secondary. names would then have rendered the whole easy
of The life of “Unser Fritz" was largely part and reference. As it is, the lists are somewhat bewil. parcel of some of the most important phases of the dering and difficult to read. The order suggested history of his time ; his character was such as to would have made them easy and interesting gild with a ray of splendor what future history will extraordinary thing for a bibliography. Probably probably regard as the declining day of European it will be said that the book is not intended to be royalty of the old type. It may perhaps be urged read, but it is certainly a distinct advantage to that not absolutism but liberalism is heir to the make a book readable, if it can be done. Mr. lustre of his virtues ; that in many things he was at Winship's knowledge of Cabot sources and literature heart a generous apostate from the tradition of his is so extensive, and his judgment 80 sound, that it
would be a pity for him to rest with this work. spilt — the principle, namely, that every people, Mr. Beazley gave us a good popular account of the however small, which is fit for self-government, or Cabots, but a definitive statement still remains to is demonstrably well on the way to that fitness, “ is be written - a book that shall be final as far as a and of right ought to be free and independent," and book can be. Mr. Winship seems to have every unpreyed upon by the commercial greed or terriqualification for writing such a book, and we trust torial ambition of its stronger neighbors. In a volthat he has it in contemplation.
ume of 328 pages, Mr. Edgar Sanderson tells in
popular style the stories of leading “ Hero-Patriots The small volume by Dr. David F. of the Nineteenth Century" (Crowell). Among Mental health Lincoln, entitled “Sanity of Mind"
the names inscribed on Mr. Sanderson's roll of (Putnam), is one of those meritori
honor are Diaz, Hofer, Bolivar, Bozzaris, Garibaldi, ous works which one is disposed to criticise rather
Kanaris, Abdel-Kader, Schamyl, Manin, Mazzini. harshly because it could so easily have been better. Mr. Sanderson writes clearly and directly, avoiding It contains good material, served rather indiffer
the pitfalls of florid description and high-flown ently well and with no executive skill. It has an
panegyric, and wisely letting the plain facts about important and a timely message, and along with his heroes speak for themselves. Tbe narratives other works of its class, will serve a good purpose appear to be based on trustworthy sources of inforin acquainting the interested public with the general mation, and the book is ou the whole a good one nature of some of the influences that make for
for popular reading at a time when the popular mental health and disease. It brings the reader mind needs a tonic that may serve to brace and within speaking distance of mental abnormalities, fortify its sense of the claims and rights of aspiring and shows him how modern views of physiological nationalism. There are several portraits. and psychological functions may be applied in wise precept as well as in specific advice. The lesson
The traditional text-book of human of the volume is essentially practical ; its tone is gations in physiology is a bulky volume illeducational and sociological. It considers the fac- human physiology. adapted to the use of the student tors of heredity and environment in the production who desires a concise manual of the subject wbich of abnormally tending influences, and points out will give a clear view of the entire field. The where the optimistic reformer may most effectively * Outlines of Haman Physiology" (Holt), by Drs. apply his philanthropic energies, and where the Schenck and Gurber of the Physiological Institute educator must be most actively upon his guard. It at Würzburg, aims to lay stress on the undisputed does this with moderate success, but not nearly so facts of the science without extended discussion of effectively as must be done before this type of ideas conflicting hypotheses. The authors' names are a becomes absorbed into the thinking of the educated sufficient guarantee that the contents have been public. One of the points most successfully em- well selected, with due regard to the latest investiphasized is the value of activity in the cure and gations in the field of human physiology. Little prevention of abnormal tendencies, not merely in attention is paid to the mechanism of experimental extreme cases but in little ways. One is at once work in the laboratory, emphasis being laid upon reminded of James's classic chapter on habit, when the results of such work rather than upon the the author, in insisting upon the necessity that ac- means by which they may be obtained. Dr. Zoequisition should leave a tangible deposit in action, thout’s translation makes this very admirable work says: Probably the most insidious form of mental available for English readers. In the preface to voluptuousness is the hearing of brilliant sermons the American edition Professor Loeb calls attention and lectures.” On the whole, one forms a more to the extension of physiological research to the favorable impression of the author than of his invertebrates in the now developing science of exbook; and yet any one interested in the spread of perimental morphology, and to the application of the point of view which Dr. Lincoln advocates, and physical chemistry to physiological problems. The sympathetic with his sound and practical purposes, results of this work, though important in their bearwill be glad to recommend the work as a step in ing on the fundamental laws of life, have not as the right direction.
yet found their way into medical text-books. The awakened sense of nationalism,
A sketch of
Mr. W. F. Apthorp has written for Hero-patriots of
resulting in the struggles on every the Opera, “ The Music Lover's Library the 19th century. hand of subject peoples to cast off
past and present.
(Scribner) what he calls a “comthe yoke of their foreign oppressors, is, together pendious sketch” of “The Opera, Past and Preswith the concomitant spread of constitutionalism or ent.” The work is brief, but it serves well its purdemocracy, the central fact of nineteenth-century pose, and the author has embodied in his not political history. The names of the leading heroes numerous pages the result of much historical rein the several wars for national independence are, search, besides the experience of a veteran proor should be, familiar ones to a generation which fessional critic. He states the gist of the whole now seems in some danger of forgetting the prin- matter of operatic history when he says that opera ciple in defence of which so much blood has been was started on the right artistic road three hundred