The Principles of Economics, with Applications to Practical Problems. Frank A. Fetter
of the Factors: The Nature of Production; Combination of the Factors 257 29 Business Organization and the Enterpriser's Function: The Direction of Industry; Qualities of a Business Organizer; The Selection of Ability 265 30 Cost of Production: Cost of Production from the Enterpriser's Point of View; Cost of Production from the Economist's Standpoint 273 31 The Law of Profits: Meaning of Terms; The Typical Enterpriser's Services Reviewed; Statement of the Law of Profits 282 32 Profit-sharing, Producers' and Consumers' Coöperation: Profit-sharing; Producers' Coöperation; Consumers' Coöperation 292 33 Monopoly Profits: Nature of Monopoly; Kinds of Monopoly; The Fixing of a Monopoly Price 302 34 Growth of Trusts and Combinations in the United States: Growth of Large Industry in the United States; Advantages of Large Production; Causes of Industrial Combinations 312 35 Effect of Trusts on Prices: How Trusts Might Affect Prices; How Trusts Have Affected Prices 323 36 Gambling, Speculation, and Promoters' Profits: Gambling vs. Insurance; The Speculator as a Risk taker; Promoter's and Trustee's Profits 333 37 Crises and Industrial Depressions: Definition and Description of Crises; Crises in the Nineteenth Century; Various Explanations of Crises 345 PART III The Social Aspects of Value 357−563 DIVISION A—RELATION OF PRIVATE INCOME TO SOCIAL WELFARE 38 Private Property and Inheritance: Impersonal and Personal Shares of Income; The Origin of Private Property; Limitations of the Right of Private Property 359 39 Income and Social Service: Income from Property; Income from Personal Services 370 40 Waste and Luxury: Waste of Wealth; Luxury 381 41 Reaction of Consumption on Production: Reaction upon Material Productive Agents; Reaction upon the Efficiency of the Workers; Effects on the Abiding Welfare of the Consumer 392 42 Distribution of the Social Income: The Nature of Personal Distribution; Methods of Personal Distribution 402 43 Survey of the Theory of Value: Review of the Plan Followed; Relation of Value Theories to Social Reforms; Interrelation of Economic Agents 412 DIVISION B—RELATION OF THE STATE TO INDUSTRY 44 Free Competition and State Action: Competition and Custom; Economic Harmony through Competition; Social Limiting of Competition 422 45 Use, Coinage, and Value of Money: The Precious Metals as Money; The Quantity Theory of Money 431 46 Token Coinage and Government Paper Money: Light-Weight Coins; Paper Money Experiments; Theories of Political Money 443 47 The Standard of Deferred Payments: Function of the Standard; International Bimetallism; The Free-silver Movement in America 453 48 Banking and Credit: Functions of a Bank; Typical Bank Money; Banks of the United States To-day 462 49 Taxation in its Relation to Value: Purposes of Taxation; Forms of Taxation; Principles and Practice 471 50 The General Theory of International Trade: International Trade as a Case of Exchange; Theory of Foreign Exchanges of Money; Real Benefits of Foreign Trade 480 51 The Protective Tariff: The Nature and Claims of Protection; The Reasonable Measure of Justification of Protection; Values as Affected by Protection 491 52 Other Protective Social and Labor Legislation: Social Legislation; Labor Legislation 504 53 Public Ownership of Industry: Examples of Public Ownership; Economic Aspects of Public Ownership 514 54 Railroads and Industry: Transportation as a Form of Production; The Railroad as a Carrier; Discrimination in Rates on Railroads 525 55 The Public Nature of Railroads: Public Privileges of Railroad Corporations; Political and Economic Power of Railroad Managers; Commissions to Control Railroads 534 56 Public Policy as to Control of Industry: State Regulation of Corporate Industry; Difficulties of Public Control of Industry; Trend of Policy as to Public Industrial Activity 544 57 Future Trend of Values: Past and Present of Economic Society; The Economic Future of Society 555 Questions and Critical Notes 565 Index 595
PREFACE
This book had its beginning ten years ago in a series of brief discussions supplementing a text used in the class-room. Their purpose was to amend certain theoretical views even then generally questioned by economists, and to present most recent opinions on some other questions. These critical comments evolved into a course of lectures following an original outline, and were at length reduced to manuscript in the form of a stenographic report made from day to day in the class-room. The propositions printed in italics were dictated to the class, to give the key-note to the main divisions of the argument. Repeated revisions have shortened the text, cut out many digressions and illustrations, and remedied many of the faults both of thought and of expression; but no effort has been made to conceal or alter the original and essential character of the simple, informal, class-room talks by teacher to student. To this origin are traceable many conversational phrases and local illustrations, and the occasional use of the personal form of address.
The lectures, at the outset, sought to give merely a summary of widely accepted economic theory, not to offer any contribution to the subject. While they were in progress, however, special studies in the evolution of the economic concepts were pursued, and the manuscript of a book on that more special subject was carried well toward completion. That work, which it is hoped some time to complete, was, for several reasons, put aside while the present text was preparing for publication. The economic theories of the present transition period show many discordant elements, yet the author felt that his attempt to unify the statement of principles, in an elementary text explaining modern problems, and consistent in its various parts, helped to reveal to him both difficulties and possible solutions in the more special theoretical field. The unforeseen outcome of these varied studies is an elementary text embodying a new conception of the theory of distribution, an outline of which will be found in Chapter Forty-three. It is, in brief, a consistently subjective analysis of the relations of goods to wants, in place of the admixture of objective and subjective distinctions found in the traditional conceptions of rent, interest, and price.
The beginning of the systematic study of economics, like the first steps in a language, is difficult because of the entire strangeness of the thought, and it is not to be hoped that any