PROBLEMS IN AMERICAN DEMOCRACY BY THAMES ROSS WILLIAMSON ASSISTANT PROFESSOR OF ECONOMICS AND SOCIOLOGY IN SMITH COLLEGE;EDITOR OF "READINGS IN AMERICAN DEMOCRACY. " _Problems are the growing pains of civilization, offeringopportunities for personal achievement and pointing the way tonational progress. _ TO My Mother WHOSE NAME APPEARS IN NO HALL OF FAME, BUT WHOSE LIFE IS AN UNBROKENRECORD OF SERVICE TO HER HOME AND TO HER COUNTRY [Blank Page] PREFACE There is an increasing demand for a textbook which will bring thestudent into direct contact with the great current issues of Americanlife, and which will afford practical training to those who soon mustgrapple with the economic, social, and political problems of our owntime. It is with the hope of meeting such a demand that this text hasbeen prepared. The plan of the book calls for a word of explanation. It is poorpedagogy to expect the student to attack the defects of American life, and at the same time to place in his hands a book which dealspredominantly with the mechanism of government. As well send a boy toa hardware store to buy tools before he is told whether he is to makea mouse-trap or a boat. Furthermore, to spend much more time on themechanism of government than on the actual problems of democracy is amistake in emphasis. Government is a means, not an end. It is a toolby means of which we attack and solve our problems. Therefore the student of this text begins, not with the mechanism ofgovernment, but with the historical background of American democracy, its origin, development, and promise for the future. Following this isa brief survey of the economic life of the nation, because thateconomic life constitutes the fundamental basis of our problems. Considerable space has been devoted to a problem growing directly outof economic conditions, _i. E. _ the question of social justice orindustrial reform. This is the most pressing question before anymodern people, but strangely enough one which heretofore has beenneglected by our schools. Because they tend to arise primarily from a bad economic situation, such social problems as industrial relations, health in industry, andimmigration are next considered. From social problems the text passesto the economic and social functions of government, and thence to thequestion of making government effective. The mechanism of governmenthas been placed last, and for the reason already given, _i. E. _ becausea knowledge of the framework of government is valuable only after thecitizen knows something of the needs which that mechanism must be madeto fill. It has not been easy to compress into a single volume the mostimportant of our national problems. Obviously, a rigid selection hasbeen necessary. In this selection the aim has been to discuss the moreimportant issues of American life, whether economic, social, or purelypolitical. In dealing with these issues, the attempt has been made tokeep in mind the student's previous preparation; on the other hand, the civic demands which the future will make upon him have not beenignored. Some of the problems are difficult, but they are also ofvital importance. Very shortly the student will be confronted, in hiseveryday activities, with such puzzling matters as socialism, thecontrol of immigration, and taxation reform. If the school does notprepare him to grapple with these questions intelligently, he can onlypartially fulfill the obligations of citizenship. Throughout the text the aim has been to go directly to the heart ofthe problem under consideration. The student is not burdened with amass of data which would prove confusing, and which would be out ofdate before he is out of school. Instead, an effort has been made tooutline, first the essential nature of the problem, and second thefundamental principles which affect its solution. Care has been takento cultivate the problem attitude, and to encourage the spirit ofindependent investigation and open-minded judgment on the part of thestudent. It goes without saying that the success of this book will dependlargely upon the use which the teacher makes of it. The text aims tosupply the basic facts and the fundamental principles involved inspecific problems, but the teacher must interpret many of those factsand principles, and ought, in addition, to furnish illustrativematerial. The book is not intended to be an encyclopedia, but rather asuggestive guide. The text covers the fundamentals of three distinct fields: economics, sociology, and government. Sufficient reference and topic work isoffered to enable teachers to expand the text along particular lines. Thus Part II might serve as a nucleus around which to build up aspecial course in economics, while Part III would serve as a basis fora similar course in applied sociology, if for some reason it were notfeasible to take up other parts of the book. Though the text is the result of the coöperative efforts of aconsiderable number of specialists, its treatment of the problems ofAmerican life is neither dogmatic nor arbitrary. The effort has beento treat all of our problems sanely and hopefully, but at the sametime to make it clear that many of these questions are still unsettledand the best method of disposing of them is yet hotly debated. Thisfact has strongly influenced the manner in which the problems havebeen treated. TOPICS AND READINGS Following each chapter are suggestions for work to supplement thetext. These suggestions are of six kinds, and are intended to meet avariety of needs. A number of easy questions on the text is first supplied. Following these is a number of required readings to supplement eachchapter of the text. The student may be asked to read a single chapterfrom Williamson's _Readings in American Democracy_, collected andarranged so as to furnish in compact form and in a single volumesupplementary material which otherwise the teacher would have to findin a number of separate books. In case the use of the _Readings_ isnot feasible, some or all of the alternative required readings may beavailable. The required readings are followed by a number of questions thereon. Questions on the material contained in Williamson's _Readings inAmerican Democracy_ will be found at the end of each chapter in thatvolume; questions on the required readings cited as alternative tothis volume will be found at the end of each chapter in the text. Topic work is provided in two groups. Topics in the first group form alink between the text and the everyday experience of the student onthe one hand, and between the activities of the student's localcommunity and national problems on the other. The student is calledupon, for example, to investigate the attitude of the local presstoward controversial questions, or to examine the administration oflocal charitable relief. Topic work of this sort not only quickens theinterest of the student, but it encourages original investigation andindependent thought. It lets the student know what is going on in hiscommunity, and it informs individuals and institutions beyond theschool that this agency is beginning to connect with the problems ofthe municipality, state, and nation. This sort of topic work alsoallows the student to test the accuracy of the text, and to interpretlocal conditions in the light of broad, national tendencies. The second group of topics contains material for report work. In thecase of practically all of these topics, the student is referredspecifically to books and other publications. Beginning with Chapter XVIII of the text, the topics are followed by aseries of questions for classroom discussion. Some of these may beturned into classroom debates. Others allow the student to challengestatements in the text. A few of these questions have never beensatisfactorily answered by anyone, yet the student must face them inthe world outside the school, and it cannot be time wasted tounderstand their content now. ACKNOWLEDGMENTS In the preparation of this text the author has received valuableassistance from a number of sources. Though such assistance in no waydiminishes his responsibility for the shortcomings of the book, theauthor desires here to acknowledge the aid extended him. The entire manuscript has been carefully worked over and criticized byClarence D. Kingsley, Chairman of the Commission on the Reorganizationof Secondary Education. Payson Smith, Commissioner of Education forthe State of Massachusetts offered valuable suggestions in connectionwith certain parts of the manuscript. The thanks of the author arealso due to L. L. Jackson Assistant Commissioner of Education for theState of New Jersey. Invaluable aid has been received from numerous members of the facultyof Harvard University. Parts of the text were read and criticized byA. Lawrence Lowell, President; Roscoe Pound, Dean of the Law School;and Paul H. Hanus, Dean of the Graduate School of Education. Professors Edward Channing and F. J. Turner, and Dr. Marcus L. Hansonoffered valuable suggestions in connection with the historicalchapters. In the Department of Economics, helpful criticisms were contributed byProfessors F. W. Taussig, T. N. Carver, O. M. W. Sprague, C. J. Bullock, W. Z. Ripley, and E. E. Lincoln; and by Dr. E. A. Monroe andDr. Mixter. Various chapters dealing with social problems were read and criticizedby Professors Richard Cabot, James Ford, R. F. Foerster, and Dr. NilesCarpenter of the Department of Socials Ethics, as well as by Dr. JohnM. Brewer of the Department of Education. Substantial aid was receivedfrom Professors W. B. Munro, A. B. Hart, and A. N. Holcombe; and fromDr. A. C. Hanford, in the preparation of the chapters on politicalproblems. Professor Edwin R. A. Seligman of the Department of Economics, andProfessor Lindsay Rogers of the Department of Government, in ColumbiaUniversity, contributed helpful suggestions. Professor Irving Fisher of Yale College read and criticized some ofthe material on economic subjects. Professor John L. Silberling atDartmouth College went over the chapters dealing with the economicproblems and pointed out numerous opportunities for their improvement. Professor Frederick A. Cleveland of Boston University read thechapters on political problems. Professor Abbott P. Usher of theDepartment of Economic History helped with several of the chapters, while Professor Ernest R. Groves of the same institution kindlycriticized the chapter on Rural Life. Henry Lefavour, President of Simmons College, and Sara H. Stites, Deanof the same institution, read various of the chapters on economic andsocial problems. Stuart Queen, Director of the Boston School for Social Workers, readthe chapters on social problems, and strengthened especially thechapter on Dependency. At Smith College, the author is indebted to several of his colleagues, especially, perhaps, to Professors J. S. Basset and Sidney B. Fay ofthe Department of History, and to Professors Esther Lowenthal, JuliusDrachsler, Harriette M. Dilla, and to Miss McMasters, of theDepartment of Economics and Sociology. At Amherst College the author is under great obligations to ProfessorJ. W. Crook of the Department of Economics, and to Dr. John M. Gaus ofthe Department of Government. At the Massachusetts Agricultural College the author is indebted toKenyon L. Butterfield, President, and to Professor Newell L. Sims, forhelp on the chapters dealing with social problems. A number of teachers in the West kindly helped with various portionsof the book. At the University of Wisconsin the author is underobligations to Professors John R. Commons and Donald D. Lescohier ofthe Department of Economics. A. S. Roberts of the University of Illinois read various of thehistorical chapters. At the University of Iowa, the author is especially grateful for thehelp of Professor F. E. Horack of the Department of Government. Professor Charles Ellwood of the University of Missouri read andcriticized the Chapter on the Family. Especially valuable were the suggestions which Professor James E. LeRossignol of the University of Nebraska offered with respect to theChapters on Socialism. At Leland Stanford University the author acknowledges his obligationsto Professor Eliot Jones of the Department of Economics. In the United States Department of State, the author is indebted toArthur N. Young for a critical reading of the Chapter on Single Tax. In the United States Department of Labor, the author is underobligations to John B. Andrews for many suggestions on the Chapter onIndustrial Relations. Gifford Pinchot, President of the National Conservation Association, kindly read and criticized the Chapter on Conservation. Edward R. Johnstone, Superintendent of the Training School atVineland, N. J. , kindly read and criticized several of the chapters onsocial problems. Edward T. Devine of New York City offered valuable suggestions withregard to the Chapter on Dependency. Owen R. Lovejoy, Secretary of the National Child Labor Committee, strengthened the Chapter on Health in Industry. The Chapter on Crime and Correction was notably improved by thesuggestions of Reginald Heber Smith, member of the Massachusetts Bar, and author of the admirable _Justice and the Poor. _ J. P. Warbasse, President of the Coöperative League of America, wentover the Chapter on Profit Sharing and Coöperation painstakingly. The Chapter on the Negro was criticized helpfully by Dr. W. E. B. DuBois, Editor of the _Crisis. _ W. M. Steuart, Director of the United States Census, kindly suppliedadvance figures on the 1920 Census. The author is also indebted to Houghton Mifflin Company, Ginn andCompany, and the Macmillan Company, either for advance information oncertain of their new books, or for permission slightly to adapt someof the material appearing in books copyrighted by them. Lastly, the author is grateful to his wife for valuable assistance incorrecting the proof. THAMES ROSS WILLIAMSON. _Cambridge, Mass. _ February 7, 1922. CONTENTS PART I--FOUNDATIONS IN AMERICAN DEMOCRACY CHAPTER I. The Background of American Democracy II. The Origin of American Democracy III. The Development of American Democracy IV. Essentials of American Constitutional Government V. The Problems of American Democracy PART II--AMERICAN ECONOMIC PROBLEMS A. ECONOMICS OF AMERICAN INDUSTRY VI. The Nature of American Industry VII. What is Meant by Production VIII. Exchanging the Products of Industry IX. Distributing the Income of Industry X. Bases of the Capitalistic System B. PROGRAMS OF INDUSTRIAL REFORM XI. Single Tax XII. Profit Sharing and Coöperation XIII. The General Nature of Socialism XIV. Militant Socialism: The I. W. W. XV. Militant Socialism: The Bolshevists XVI. The Case Against Socialism XVII. A Democratic Program of Industrial Reform PART III--AMERICAN SOCIAL PROBLEMS XVIII. Industrial Relations XIX. Health in Industry XX. Immigration and Assimilation XXI. Crime and Correction XXII. The Negro XXIII. The Family XXIV. Dependency: Its Relief and Prevention XXV. Rural Life XXVI. Education PART IV--AMERICAN POLITICAL PROBLEMS A. SOME ECONOMIC FUNCTIONS OF GOVERNMENT XXVII. Public Interest in Business: Regulation XXVIII. Public Interest in Business Ownership XXIX. The Tariff XXX. Conservation XXXI. Credit and Banking XXXII. Taxation B. MAKING GOVERNMENT EFFECTIVE XXXIII. Who Shall Share in Government XXXIV. The Political Party XXXV. Choosing the Agents of Government XXXVI. Honesty and Efficiency in Office XXXVII. The Extension of Popular Control XXXVIII. Public Opinion PART V--THE MECHANISM OF GOVERNMENT A. THE FEDERAL GOVERNMENT XXXIX. The Federal System of Government XL. The President of the United States XLI. The National Administration XLIL. Nature and Powers of Congress XLIII. Congress in Action XLIV. The Federal Courts B. STATE AND LOCAL GOVERNMENT XLV. Constitutional Basis of State Government XLVI. The State Executive XLVII. The State Legislature XLVIII. The State Courts XLIX. Municipal Government L. Rural Local Government Bibliography Appendix The Constitution of the United States Index PROBLEMS IN AMERICAN DEMOCRACY PART I--FOUNDATIONS IN AMERICAN DEMOCRACY CHAPTER I THE BACKGROUND OF AMERICAN DEMOCRACY 1. THE MEANING OF NATIONAL GREATNESS. --We apply the term greatness tonations that have made substantial contributions to civilization. Bycivilization is meant a well-rounded and highly developed culture, or, to say the same thing in different words, an advanced state ofmaterial and social well-being. Civilization is so vast and so many-sided that it may receivecontributions in very diverse forms. The invention of the hieroglyphicsystem of writing is among the leading achievements of ancient Egypt, but the art and literature of Greece have been no less conspicuous inthe onward sweep of human progress. The promotion of the science ofnavigation by the Phoenicians, and the development of law andarchitecture by Rome, illustrate a few of the forms in which peoplesmay confer marked benefits upon the world. The advancement of musicand painting by Italy, France, and other European nations, and theapplication and expansion of the idea of parliamentary government byEngland, are further examples of ways in which nations may earn forthemselves the title of greatness. 2. THE CONDITIONS OF NATIONAL GREATNESS. --In order that a nation maybecome great, _i. E. _ make some distinct contribution to civilization, two conditions must be fulfilled. The first condition of national greatness is that the land under thatnation's control must be encouraging to man's honest, helpful efforts. [Footnote: As used in this chapter the term "land" is held to includenot only such natural resources as soil, minerals, forests, and bodiesof water, but climate as well. ] The vigorous Scandinavians have madegreat advances in inhospitable Iceland and Greenland, the French havereclaimed an important section of Algeria, and the British have workedwonders with some of the barren parts of Australia; nevertheless, itis with great difficulty that prosperous communities are developed inlands relatively barren of natural resources, or unusually severe inclimate. A high and stable civilization has rarely arisen in the tropics, because there the overabundance of Nature renders sustained workunnecessary, while the hot, enervating climate tends to destroyinitiative and ambition. It is no accident that the greatest nationsof modern times are located chiefly within the stimulating temperatezones, where Nature is richly endowed, but where, too, her treasuresare rarely bestowed upon those who do not struggle consistently forthem. The second condition of national greatness is an intelligent andindustrious population, willing to abide by the law, and devoted tothe building of homes. The combination of an unpromising land and aninferior population effectually prevents the rise of a highcivilization. And just as the choicest of men can do relatively littlein an unfriendly land, so the most promising of countries may bedespoiled or temporarily ruined by a slothful or lawless population. From the standpoint of civilization, the best results are obtainedwhen a virile and law-abiding people exercise control over a land richin natural resources and possessed of a stimulating climate. Franceand Great Britain in Europe, and Canada and the United States in NorthAmerica, are examples of great nations which have been built up insuch lands and by such peoples. 3. THE ATTRACTIVENESS OF NORTH AMERICA. --It will be interesting toexamine North America in the light of the two conditions of nationalgreatness discussed in the preceding section. We may note, first ofall, that by far the greater part of the territory now comprising theUnited States and Canada is distinctly favorable to settlement. Thisterritory lies almost entirely within the temperate zone: it hasunattractive spots, but in general it is neither so barren ofresources as to discourage the home-maker, nor so tropical in itsabundance as to reward him without his putting forth considerableeffort. Particularly within the bounds of the United States is a well-balanced national life encouraged by the diversity of soils and thewide variety of climate. [Footnote: For a fuller discussion of thenatural resources of the United States, see Chapter VI. ] Certainly thecontinent of North America fulfills the first condition of nationalgreatness. 4. THE COMING OF THE EUROPEAN. --The discovery of America in 1492opened a new era in world history. The nations of western Europe weredisappointed when their earlier explorers found the way to Cathayblocked by a new land-mass, but the Spanish discovery of treasure inMexico and South America soon turned disappointment into keeninterest. No magic palaces or spice islands were found, but there wererevealed two virgin continents inviting colonial expansion on a scalepreviously unknown. Of the European powers which at various times laidclaim to parts of the New World, Spain, France, Holland, and Englandoccupy significant positions in the background of American democracy. We may briefly notice the influence of each of these four powers uponAmerica. 5. SPAIN. --Though the Spanish were the first in the field, the motivesof the colonists limited their ultimate success in the new land. Theearlier Spaniards were missionaries and treasure-seekers, rather thanhome builders and artisans. The early discovery of great quantities ofgold and silver had the effect of encouraging the continued search fortreasure. In this treasure-quest, often fruitless, the Spanishpractically confined themselves to Mexico and the region to the south. In these areas they did valuable work in Christianizing and educatingthe natives, but little industrial progress was made. Except for themissionary work of the Spanish, their earlier colonization was largelytransient and engaged in for the purpose of exploitation. 6. FRANCE. --France disputed the claim of Spain to North America soonafter the opening of the sixteenth century. The French attempted tosettle in Florida and in South Carolina, but the opposition of thenear-by Spanish forced the newcomers to leave. In 1524 Verrazanoexplored the North Atlantic coast for the French, and ten years laterCartier sailed up the St. Lawrence and founded the claim of France tothat section of the New World. Following the example of Spain, France dispatched missionaries to theNew World to convert the Indians. Soldiers and trappers were sent outto develop the valuable fur trade by the establishment of widelyseparated forts and trading posts. But the French settlers had nopopular lawmaking bodies, being completely under the power of theking. Only along the St. Lawrence, where agricultural colonies wereplanted, did the French really attach themselves to the soil. Elsewhere there were few French women and therefore few normal Frenchhomes, and when in 1763 all of the French possessions east of theMississippi were ceded to England, it was largely true that the Frenchcolonies had not yet taken root in the country. Infinite courage, devotion, and self-sacrifice were ultimately wasted, largely becauseof the lack of homes, the absence of self-government, and the failureto develop an industrial basis of colonization. 7. HOLLAND. --The Dutch became aware of the commercial possibilities ofthe New World when in 1609 Henry Hudson discovered the river whichbears his name. Trading posts were soon established in theneighborhood, and in 1621 the West India Company was given fullauthority to plant colonies in New Netherland. A brisk trade in fursdeveloped, but though the Company grew rich, the colonists were notsatisfied. The agriculturists along the Hudson had the benefit of afertile soil and a genial climate, but they operated their farms undera feudal land system which allowed an overlord to take most of theirsurplus produce. Moreover, the Dutch governors were autocratic, andthe settlers had little voice in the government of the colony. Loyaltyto Holland waned as the Dutch saw their English neighbors thrivingunder less restrictive laws and a more generous land system, so thatwhen in 1664 the colony passed into the possession of the English, themajority of the settlers welcomed the change. 8. ENGLAND. --The Spanish had been in the New World a century beforethe English made any appreciable impression upon the continent ofNorth America. In 1583 Sir Humphrey Gilbert had made an unsuccessfulattempt to found a colony on the coast of Newfoundland, and a fewyears later Sir Walter Raleigh's venture at Roanoke Island provedequally disastrous. Colonization was retarded until 1588, in whichyear England's defeat of the Spanish Armada destroyed the sea power ofher most formidable rival. The English may be said to have madeserious and consistent attempts at colonization only after this event. Like France, England desired to set herself up as a successfulcolonizing rival of Spain. Impelled by this motive, the earlierEnglish adventurers sought treasure rather than homes. But the highhopes of the early English joint stock companies were not justified. Those who had looked to America for treasure were disappointed: nogold was forthcoming, and such groups as the Jamestown settlers of1607 very nearly perished before they learned that America's treasure-house could be unlocked only by hard work. In spite of heavyinvestments and repeated attempts at colonization, these firstventures were largely failures. 9. THE COMING OF THE HOME-MAKER. --It may truly be said that the seedsof national greatness were not planted in America until home-makingsucceeded exploitation by governments and joint stock companies. Home-making received little or no encouragement in the early Spanish, French, and Dutch colonies. Almost from the first, England allowed hercolonies a large measure of self-government, but it is significantthat these colonies made little progress so long as they weredominated by joint stock companies intent upon exploitation. It wasonly when individuals, and groups of individuals, settledindependently of the companies that the colonies began to thrive. Thefirst really tenacious settlers on the Atlantic seaboard were groupsof families who were willing to brave the dangers of an unknown landfor the sake of religious freedom, economic independence, and a largeshare of self-government. It was with the coming of these people thatour second condition of national greatness was fulfilled. 10. GROWTH OF THE ENGLISH COLONIES. --The English annexation of NewNetherland in 1664, and the concessions of the French in 1763, leftthe English in undisputed possession of the greater part of theAtlantic seaboard. The English colonies in this area grew withastonishing rapidity. Cheap land, religious freedom, and the privilegeof self-government attracted settlers from all parts of northernEurope. At the close of the seventeenth century there were 260, 000English subjects in North America; in 1750 there were approximately1, 000, 000; and in 1775 there were probably 3, 000, 000. Although in most sections the dominant element was of Englishextraction, other nationalities contributed to the population. Alongthe Delaware, Swedes were interspersed with the English, while inPennsylvania there were large groups of Germans. Numerous Dutchsettlers had continued to live along the Hudson after New Netherlandhad passed into English hands. Some of the most frugal and industriousof the settlers of Georgia and South Carolina were French Huguenots, while along the seaboard and inland the Scotch-Irish were foundscatteringly in agriculture and trade. Such was the composition of thepeople who were destined to begin an unexampled experiment indemocracy, an experiment upon the successful termination of whichrests our chief claim to national greatness. QUESTIONS ON THE TEXT 1. What is meant by civilization? 2. What two conditions must be fulfilled in order that a nation maybecome great? 3. In what way does America fulfill the first condition? 4. Discuss the character of the early Spanish colonization. 5. What were the chief reasons for the failure of the French inAmerica? 6. What were the chief defects of the Dutch colonial system inAmerica? 7. Compare the earlier English colonization with that of Spain, France, and Holland. 8. When were the seeds of national greatness planted in America? 9. Who were the first really tenacious settlers on the Atlanticseaboard? 10. Outline the growth of the English colonies. 11. Upon what does our chief claim to national greatness depend? REQUIRED READINGS 1. Williamson, _Readings in American Democracy, _ chapter i. Or all of the following: 2. Bogart, _Economic History of the United States, _ chapter ii. 3. Coman, _Industrial History of the United States, _ chapter i. 4. Huntington and Gushing, _Principles of Human Geography, _ chapters iand xii. 5. Smith, _Commerce and Industry, _ introduction. QUESTIONS ON THE REQUIRED READINGS 1. Discuss the statement, "Civilization is a product of adversity. "(Smith, page 2. ) 2. What is the effect of tropic abundance upon civilization? (Smith, page 2. ) 3. What is the relation of efficiency to climate? (Huntington andCushing, page 6. ) 4. In what way is civilization related to density of population?(Huntington and Cushing, page 10. ) 5. What is an ideal climate, and where is such a climate found?(Huntington and Cushing, page 254. ) 6. How does national progress depend upon beasts of burden? (Smith, page 8. ) 7. Name some of the political motives of colonization in America. (Bogart, pages 29-30. ) 8. Name the chief religious motives of colonization. (Bogart, page30. ) 9. What were the chief economic motives of colonization? (Bogart, pages 31-34. ) 10. Why did the English finally prevail in the struggle for theAtlantic seaboard? (Coman, pages 19-21. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Check up your own experience carefully in order to determine duringwhat season of the year you work most effectively. What light doesyour answer throw upon Topic 5? 2. To what extent is the climate of your section favorable to anenergetic life? To what extent, if to any, is it discouraging toinitiative and ambition? 3. Trace the influence of the geography of your section upon theeconomic life of your community. 4. The nature of civilization. II 5. Relation of civilization to climate. (Huntington, _Civilization andClimate, _ pages 148-182. ) 6. The relation of cheap food to the growth of population. (Carver, _Sociology and Social Progress, _ pages 235-243. ) 7. The effect of desert life upon health and spirits. (Carver, _Sociology and Social Progress, _ pages 273-275. ) 8. Effect of the climate of North America upon persons of Europeandescent. (Bullock, _Selected Readings in Economics, _ pages 1-22. ) 9. The influence of the Appalachian barrier upon American colonialhistory. (Semple, _American History and Its Geographic Conditions_chapter iii. ) 10. The Spanish in America. (Consult any standard history text. ) 11. The French in America. (Consult any standard history text. ) 12. The Dutch in America. (Consult any standard history text. ) 13. The English in America. (Consult any standard history text. ) 14. The qualities of an ideal people. (Carver, _Elementary Economics, _chapter iv. ) CHAPTER II THE ORIGIN OF AMERICAN DEMOCRACY 11. THE NATURE OF GOVERNMENT. --A government may be defined as anagency through which the purposes of a state or nation are formulatedand carried out. This agency develops where men live in groups. One ofthe chief objects of government is to adjust individual interests, or, to say the same thing in slightly different words, to control membersof the group in their social relations. Where groups are small and culture is at a low level, government mayconsist in little more than the arbitrary rules of a self-appointedchieftain. From this stage there are numerous gradations up to thegreat complex governments of the leading nations of to-day. With theorigin and general development of government we are not hereconcerned, and we may accordingly confine our attention to those typesof modern government which throw light upon the development ofAmerican democracy. 12. THE ABSOULUTE MONARCHY. --An absolute monarchy may be defined as agovernment in which supreme power or sovereignty is lodged in oneindividual. This monarch holds his position for life, generally withhereditary succession. Often the absolute monarchy arose out of theancient chieftainship, when, as the result of territorial expansionand cultural development, the chief of a group of tribes became theking of a settled and civilized people. The absolute monarchy existedin most of the countries of Europe previous to the end of theeighteenth century. In its most extreme form the absolute monarchyrested upon the claim of the monarch that he ruled by "divine right, "_i. E. , _ that God had authorized him to rule. France in the era ofLouis XIV is one of the best known examples of a modern nation ruledby a "divine right" monarch. 13. THE LIMITED MONARCHY. --When a monarch has been restricted in hispowers a limited or constitutional monarchy is said to exist. Almostalways the establishment of a limited monarchy has been preceded by aseries of struggles between king and people. In many cases thesestruggles have been precipitated or intensified by the monarch's abuseof power. A striking example is offered by English history. As theresult of his arbitrary rule, King John was in 1215 obliged to signthe Magna Charta, by which act he gave up many important powers. Thelimits thus set upon the kingly power were affirmed and extended bythe Petition of Right of 1628 and by the Bill of Rights of 1689. Asimilar limiting process has gone on in other countries, either by theframing of constitutions, or by the enlargement of the powers oflegislatures, or by both methods. To-day the absolute monarchy ispractically unknown among civilized nations. 14. THE REPUBLIC. --The republic is a form of government in whichultimate power or sovereignty resides with the people as a wholerather than with a single individual. Instead of a monarch there isgenerally an elective president, with varying powers. The republic isa very old form of government, but in the republics of Greece, Romeand Venice the powers of government were exercised by a class composedof a small minority of the people. In modern republics a largerproportion of the adult population participates in government. A republic may arise in any one of several ways, but most of therepublics of modern times have grown out of monarchical conditions, either directly or indirectly. Our republic arose as a reactionagainst English monarchy, while the French republic came into being asthe result of the destruction of a monarchical government. Most of therepublics of Latin America date from the throwing off of the Spanishyoke in the first half of the nineteenth century. More recently, theWorld War has given rise to a number of European republics, composedof peoples formerly under the control of monarchical governments. 15. DEMOCRACY AS A POLITICAL IDEA. --The term democracy is derived fromtwo Greek words which taken together mean "control by the people. "Strictly speaking, democracy is a _form_ of government only where asmall group governs itself directly, _i. E. , _ without making use of therepresentative device. This "pure" democracy, such as existed in theearly New England town, becomes a representative democracy, or arepublic, when a greater population and an increasing politicalcomplexity require the people to act through their representatives, rather than as a body. In the sense that democracy is popular control, the term democracy may conceivably be applied to any form ofgovernment. The present government of Great Britain, for example, istechnically a limited monarchy, yet the gradual extension of popularcontrol has made it one of the most democratic governments in theworld. Nevertheless, the modern republic is so generally associatedwith the democratic movement that many authorities speak of ademocracy as identical with a republic. For the time being we may usethe term democracy to describe a form of government in whichconsiderable control is exercised by the people. More briefly, democracy may be thought of as self-government. 16. WHY DEMOCRACY DEVELOPED IN AMERICA. --There are four reasons whydemocracy developed early in America. The first is to be found in the conditions of pioneer life in thecolonies. The wilderness forced self-government upon the settlers. Clearing the forests, subduing the Indians, and conquering animal foeswas stern work, which weeded out the indolent and inefficient, andrewarded the capable and self-reliant. Pioneer conditions did notencourage a cringing or submissive spirit, but fostered independenceand individualism. The spirit of equality tended to become a dominantfeature of American life, for despite the existence of social classes, the great majority of the population had to rely for their living upontheir own efforts. Under such conditions self-reliance and self-government were natural developments. The selected character of the colonists is a second reason for therise of democracy in America. Restless spirits who had chafed underthe restraints of monarchy in Europe, thronged to the new land. Oncehere they often found the older American communities intolerant, andso struck out into the wilderness to found new and, to them, moredemocratic colonies. The founding of Rhode Island by Roger Williams, and the settlement of the Connecticut valley by Thomas Hooker, illustrate this tendency. It should be remembered, thirdly, that the English colonists broughtwith them very definite ideas as to the rights of man. The concessionsgranted by the Magna Charta were made an essential part of theirpolitical philosophy. The belief that all men were born free andequal, and that government derives its just powers from the consent ofthe governed, became prominent in early American politics. Where thedemocratic tendencies of the settlers were reinforced by suchtraditions, an oppressive government could not last. In Carolina in1670, for example, an attempt to set up an undemocratic governmentfailed, and when half a century later a similar attempt was made inGeorgia, the settlers objected so ardently that the founders of thecolony were obliged to grant the privilege of self-government. A fourth explanation of the rise of democracy in America is that, leftto themselves, the settlers came to feel that self-government wasmorally right. Largely removed from the traditions of monarchy, theysoon realized the elemental significance of government. Seeinggovernment as a device to help people get along together, theyconcluded that that government is best which most helps the masses ofthe people. The existence of a British monarch was a small factor inthe everyday life of the early settlers, and from this it was a shortstep to asserting that his control over them was unjust. Living underprimitive economic conditions, the minds of the people turnednaturally to freely formed agreements as a basis of group action. Under such conditions democracy appeared to the colonists as moral, just, and natural. 17. APPLYING THE DEMOCRATIC IDEA. --Partly because of the isolation ofearly American life, and partly because England was busy with Europeanpolitics, the settlers were left relatively free to work out theirideas of democracy. The Pilgrims had not yet set foot upon the newland when they drew up the Mayflower Compact, by the terms of whichthey agreed to establish a pure democracy in their new home. In 1639the inhabitants of three Connecticut towns came together in a massmeeting, and drew up the Connecticut Fundamental Orders, which manyauthorities regard as the first written constitution in this country. Aside from the fact that the Orders created a small republic in theheart of the wilderness, they are of importance because they issueddirectly from the people, without suggestion from, or direction by, any outside agency. Elsewhere in New England, too, local self-government was a spontaneous growth. Usually the settlers groupedthemselves in small, compact communities known as towns, the freemencoming together in the town meeting for the purpose of passing lawsand electing officials. The town meeting constituted a pure democracy, in which the freemen governed themselves consciously and directly. 18. SPREAD OF THE REPRESENTATIVE IDEA. --The principle ofrepresentative government appeared very early in English history, expressing itself most clearly in the houses of Parliament. Theprinciple was early transplanted to America, for in 1619 we find theLondon Company establishing in Virginia a House of Burgesses, thefirst representative assembly in the New World. The representativedemocracy spread rapidly through the colonies, in many cases replacingthe pure democracy as a form of local government. In MassachusettsBay, for example, the population of the colony became so dispersed, and the complexity of its government so great, that it was necessaryfor most freemen to remain at home, and to content themselves withchoosing a small number of individuals to represent their interests. These representatives gathered in the General Court and transacted thebusiness of the colony. 19. THE SEPARATION OF POWERS. --As government develops in scope andcomplexity, there is a tendency for the agents of government tospecialize in various types of work. A more or less recognizableseparation of the governmental machinery into legislative, executive, and judicial branches had long been a feature of English government. Early in the seventeenth century this principle was transferred to thegovernment of the English colonies in America. There was establishedin each colony a legislative branch for the enactment of laws, anexecutive branch to see that the laws were enforced, and a judicialbranch for the interpretation of the laws. This separation offunctions was more definite in America than in England because thejealousy existing between colonial legislature and colonial executivetended sharply to separate their powers. In America, too, thejudiciary was more clearly an independent branch of government than inEngland. 20. THE COLONIES AS SELF-GOVERNING STATES. --It has often been saidthat for a considerable period prior to the American Revolution, thethirteen colonies were in reality self-governing states. For mostpractical purposes they were independent, indeed, some Americanpatriots insisted that they were only nominally subject to England. Ineach colony there was an assembly chosen by a restricted number ofvoters. This popular assembly championed the cause of the colonistsagainst the governor, who in most of the colonies was primarily anagent of the Crown. After the middle of the eighteenth century, thestruggles between assembly and governor increased in number and inintensity, and victory rested more and more often with the assembly. [Footnote: For the similarities existing among the various colonialgovernments see Chapter XXXIX. ] 21. EFFECT OF THE REVOLUTION UPON AMERICAN GOVERNMENTS. --TheRevolution did not greatly affect the character of Americangovernments. Democracy, at first weak and ill diffused, had beenspreading steadily during the preceding century, and when at last thebreak with England came, it found the states trained in self-government and able to conduct their own affairs. In many cases theRevolution simply erased the name of the king from documents andinstitutions already American in spirit and character. The stateseither retained their old charters as constitutions, as in the case ofConnecticut and Rhode Island, or framed new constitutions based uponthe experience of colonial government. The popular legislativeassembly was everywhere retained. The common law of England continuedin force, and the system of courts was retained in practically itspre-Revolution form. The basis of state government had been laid longbefore the Revolution, the new states simply accepting the basicpolitical principles with which they, as colonies, had long beenfamiliar. The defeat of English claims was only an incident in theirresistible progress of American democracy. QUESTIONS ON THE TEXT 1. What is one of the chief objects of government? 2. What is the essential feature of the absolute monarchy? 3. Give an example of a country once ruled by a "divine right"monarch. 4. Explain the difference between an absolute and a limited monarchy. 5. What is the distinction between a monarchy and a republic? 6. Name some modern republics and explain their origin. 7. Explain clearly the nature of political democracy, and show itsrelation to the monarchy and to the republic. 8. What are the four reasons for the rise of democracy in earlyAmerica? 9. Trace the early application of the democratic idea in America. 10. Where in America was the representative principle first applied? 11. Explain the principle of the "separation of powers. " 12. To what extent were the colonies self-governing states? 13. Explain the effect of the Revolution upon American governments. REQUIRED READINGS 1. Williamson, _Readings in American Democracy, _ chapter ii. Or all of the following: 2. Bryce, _Modern Democracies, _ vol. I, chapters i and xii. 3. Beard, _American Government and Politics, _ chapter i. 4. McLaughlin, _Steps in the Development of American Democracy, _chapter i. 5. Turner, _The Frontier in American History, _ chapter i. QUESTIONS ON THE REQUIRED READINGS 1. What was the extent of democracy in the world a century ago?(Bryce, page 3. ) 2. Why is the study of democracy increasingly important? (Bryce, pages4-5. ) 3. What is the fundamental significance of local self-government?(Bryce, pages 131-133. ) 4. In what way has the advance of the frontier meant a steady movementaway from the influence of Europe? (Turner, page 4. ) 5. How did the frontier promote individualism? (Turner, page 30. ) 6. What intellectual traits are fostered by pioneer life? (Turner, pages 37-38. ) 7. Explain the significance of the Virginia House of Burgesses. (McLaughlin, pages 11-13. ) 8. Discuss the character of the colonial governor. (Beard, pages 3-7. ) 9. What were the chief powers of the colonial legislature? (Beard, page 8. ) 10. Describe the colonial judiciary. (Beard, pages 12-14. ) 11. What was the extent of the suffrage in colonial times? (Beard, pages 8-10. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Illustrate the nature of government by tracing the origin anddevelopment of a club or society of which you are a member, or withwhich you are familiar. 2. Early pioneer life in your community, withparticular reference to social and economic conditions. (Consult localhistories, or, where possible, interview an old settler in yoursection. ) 3. Origin and development of local government in your section. (Proceed as with Topic 2. ) 4. The origin of the first constitution of your State. 5. A classification of the present-day governments of the world on thebasis of their democratic character. II 6. Genesis of the limited monarchy. (White, _The Making of the EnglishConstitution, _ pages 253-285. ) 7. Origin and development of Parliament. (White, _The Making of theEnglish Constitution, _ pages 298-322. ) 8. Origin and development of the English judiciary. (White, _TheMaking of the English Constitution, _ pages 122-252. ) 9. Historical evolution of democracy. (Bryce, _Modern Democracies, _vol. 1, chapter iv. ) 10. Theoretical basis of democracy. (Bryce, _Modern Democracies, _ vol. 1, chapter v. ) 11. Difficulty of defining the term "democracy. " (Bryce, _ModernDemocracies, _ vol. 1, chapter iii. ) 12. American political theory before the Revolution. (Beard, _Readings in American Government and Politics, _ pages 14-16. ) 13. Contributions of the West to American Democracy. (Turner, _TheFrontier in American History, _ chapter ix. ) 14. Development of the General Court in Massachusetts. (Osgood, _TheAmerican Colonies in the Seventeenth Century, _ vol. I, pages 141-166. ) 15. A Boston town meeting. (Beard, _Readings in American Governmentand Politics, _ pages 11-13. ) 16. Local government in Virginia. (Bruce, _Economic History ofVirginia in the Seventeenth Century, _ vol. Ii, chapter xx. Beard, _Readings in American Government and Politics, _ pages 13-14. ) CHAPTER III THE DEVELOPMENT OF AMERICAN DEMOCRACY 22. LOCAL VERSUS NATIONAL SPIRIT. --The outbreak of the AmericanRevolution proved that the colonies were so deeply attached todemocracy that they were willing to fight for it. But the spirit whichanimated the Revolution was local, rather than national. The colonialprotests which in 1776 reached their climax in the Declaration ofIndependence, had to do almost entirely with the rights of thecolonies as individual states, and with the determination of thosestates to defend the principle of self-government. The war createdthirteen practically independent states, among which the spirit ofstate sovereignty was much stronger than was the inclination to forman indissoluble union. The Revolution emphasized local and stateinterests rather than intercolonial coöperation, and however much thecolonists appreciated local democracy in 1776, they had yet to learnto think in terms of a national patriotism. A brief review of theattempts at union before 1787 will serve to illustrate this importantpoint. 23. EARLY ATTEMPTS AT UNION. --The first notable attempt at union wasmade in 1643, when Massachusetts Bay, Plymouth, Connecticut, and NewHaven formed a league, chiefly for the purpose of mutual defense. Thisleague was in force for forty years, and rendered effective service inthe Indian wars. In 1754 delegates from seven of the colonies met at Albany and adopteda plan of union proposed by Benjamin Franklin. The plan provided for acolonial army, the control of public lands, legislation affecting thegeneral welfare, and the levying of taxes for intercolonial projects. In America Franklin's plan was regarded with considerable favor, butit was never given serious consideration by the British Parliament. The project fell through. Still later (1765) delegates from nine of the colonies met in theStamp Act Congress, for the purpose of drawing up a protest againstthe taxation policy of the mother country. The two continental congresses may also be regarded as steps towardunion. The first of these met in 1774 and concerned itself chieflywith a declaration of rights and grievances. The second (1775-1781)assumed revolutionary powers, and, with the consent of the people, exercised those powers during the greater part of the war period. 24. THE ARTICLES OF CONFEDERATION. --Nothing so clearly illustrates thesectional feeling of that era as the history of the Articles ofConfederation. The Articles were adopted by the Second ContinentalCongress in 1777, but on account of the tardiness with which some ofthe states ratified them, they were not put into actual operationuntil March 1, 1781. By the terms of the Articles the states yieldedsome of their powers, the central government being given the right todeclare war, borrow and coin money, establish post offices, andotherwise act for the general good. On the other hand, the Articlesdeclared that "each state retains its sovereignty, freedom andindependence, and every power, jurisdiction, and right which is not bythis federation delegated to the United States. " Thus the new government was a confederation or league of states, rather than a federal government such as we have to-day. There was nonational executive, and no judiciary. All authority was concentratedin a one-chambered congress, in which each state was represented bynot fewer than two and not more than seven members. The delegates weresubject to recall by the legislatures of their respective states. Eachstate had one vote, which was determined by a majority of the state'sdelegates who were present when the vote was taken. 25. DEFECTS OF THE CONFEDERATION GOVERNMENT. --The governmentestablished by the Articles of Confederation had a number of gravedefects. The fundamental difficulty was that the central governmenthad no real authority or power. The Congress of the Confederationcould reach individuals only through the action of the stategovernments, and these it could not coerce. Thus the Congress coulddeclare war, and make requisitions upon the states for troops, but itcould not enlist a single soldier. It could make laws, but had nopower to enforce them. It could make treaties with foreigngovernments, but could not oblige the states to respect thoseagreements. The central government could not levy taxes, but wasobliged to accept whatever sums the states chose to contribute. TheConfederation government could not even protect itself, or the states, against violence. It lacked force, and without the ability to exertforce, a government is a government in name only. Not only did the central government fail to enlist the respect andsupport of the states, but it could not induce the states to respector support one another. Congress had no power to regulate eitherforeign or domestic commerce, each state being free to control thecommercial activities of its citizens as it saw fit In many cases thestates engaged in trade wars, that is, they levied heavy duties uponthe commerce of one another, or even refused to allow their citizensto buy goods from, or sell goods to, persons in neighboring states. Matters calling for unity of action and friendly coöperation, such asroads and canals, were ignored or neglected because of interstatejealousy. Whereas they should have united against the grave dangers ofthe period immediately following the war, the states often wasted timeand energy in controversy and strife. 26. FAILURE OF THE CONFEDERATION GOVERNMENT. --The Confederationgovernment, established in 1781, functioned weakly during theremaining two years of the war, and then declined rapidly in power andinfluence. The defects of the Articles could not be remedied, foramendment was by unanimous consent only, and on every occasion that anamendment was proposed, one or more states refused their assent. According to John Fiske, the five years following the peace of 1783constituted the most critical period in the history of the Americanpeople. Business was demoralized. Most of the states were issuingworthless paper money, and several of them passed laws impairing theobligation of contracts. In a movement known as Shay's Rebellion(1786-1787), a portion of the debtor class of Massachusetts attemptedto prevent the collection of debts. Paper money depreciated so greatlythat in many places it ceased to pass as currency. The centralgovernment could not raise money to meet its ordinary expenses, and in1783 Congress was forced to flee Philadelphia to escape the wrath ofsome eighty Pennsylvania soldiers whom it could not pay. Demoralization and civil strife at home were matched by ridicule andsuspicion abroad. Congress could not pay the interest on the nationaldebt. As early as 1783 our foreign credit was gone. Many Europeanstatesmen scoffed at the American government. France denied theexistence of a general government in America. In England ourdiplomatic representatives suffered numerous humiliations. They weretold, for example, that the British would not relinquish the westernforts promised us by the Treaty of Paris until our national governmentwas able to force the several American states to observe the treaty. 27. OBSTACLES TO UNION. --There are three important reasons why thestates failed to draw together into a firm union before 1787. In the first place, each state considered itself a sovereign body, andof governments above and beyond itself it was naturally suspicious. Many of the Americans had regarded the British government as a super-government, imposed against the will of the American people, andmaintained in spite of their protests. The Dominion of New England, which, prior to the adoption of the Articles of Confederation, hadbeen the nearest approach to union, was recalled with anger and infear. This plan, forced upon the Americans in 1686 by the king, unitedeight of the colonies under the rule of Governor Andros. The union wasdissolved by the Bloodless Revolution of 1688, but the arbitrary ruleof Andros was long cited by the Americans as proof of the despoticcharacter of any government beyond that of the individual states. A second explanation of the failure of the states to unite before 1787is to be found in the social and economic differences existing amongthe states. Most of the inhabitants of New England were grouped insmall, compact communities, and were engaged in shipbuilding andcommerce, rather than in agriculture. There was an aristocratic group, but most of the people belonged to the middle class, and were simpleand even severe in their tastes. In the middle colonies, on the otherhand, most of the people were small farmers of mixed religious andracial character. Social classes existed to a considerable extent. Finally, the South was devoted to large plantations, cultivated byblack slaves. Social lines were sharply drawn, and a genuinearistocratic class was already well formed. A third reason for the weakness of the coöperative spirit among thestates is to be found in the lack of means of transportation andcommunication. Travel was mostly confined to natural waterways, or torude paths over which horses proceeded with great difficulty. As lateas 1800 it often took a horseman longer to go from Boston to New Yorkthan it now takes to go by rail from New York to San Francisco andback again. There were no railroads in those days, no telephones, notelegraph, and practically no postal service. Life was primarilyrural, even on the seacoast. Most interests centered about the localcommunity, or at farthest, about the colony or state. In many sectionsthere was little exchange of products or of ideas. From the resultingisolation there developed a strong feeling of localism orprovincialism. Ignorance and suspicion of intercolonial affairs gaverise to misunderstandings, and emphasized differences and disputeswhich in themselves were unimportant. Thus jealousy and hostilityoften sprang up where mutual confidence and coöperation were sorelyneeded. 28. NEGATIVE FORCES FAVORING UNION. --The failure of the Articles ofConfederation is one of the most discouraging chapters in thedevelopment of American democracy. And yet it is an indispensablechapter, for it demonstrated, far more convincingly than could anytheoretical argument, that there must be one great American nationrather than thirteen or more unrelated republics. Six years ofpractical experience with the Articles of Confederation taught theabsolute necessity of a strong central government. The weaknesses ofthe Confederation government constituted the most spectacular of theforces favoring union in 1787, and yet these forces were negative incharacter: the states accepted the Constitution of 1787 not so muchbecause they were attracted by it, as because they saw little chanceof getting along without it. 29. POSITIVE FORCES FAVORING UNION. --It should be noted, on the otherhand, that for a long period previous to the adoption of theConstitution of 1787, certain positive forces were impelling thestates toward union. In their Old World homes most of the settlers hadoccupied somewhat the same social position, and had been used tosomewhat the same economic conditions. This common backgroundconstituted, in their New World homes, a unifying force of greatimportance. Long before 1787, too, the great majority of the settlerswere of English descent, speaking the English language, and, exceptfor the Roman Catholics of Maryland, professing some form ofProtestantism. In spite of the numerous jealousies and rivalries among the varioussections of the country, there were at work forces which tended tobreak down the spirit of localism or provincialism. Though theRevolution established thirteen separate states, the war hadencouraged the Americans to feel that they were a single people with acommon destiny. The soldiers of various sections had rubbed elbowswith one another during the French and Indian wars, and during theRevolution. This had served to encourage a feeling of comradeshipbetween the inhabitants of different communities. The population ofthe country was doubling every twenty years, and groups previouslyisolated were coming into contact with one another. Interstatecoöperation was not only more necessary than ever before, but it wasless difficult to bring about. Highways were being improved, and thepostal service gradually extended, with the result that a morewholesome social life was made possible. In an economic sense the American people were increasinglyinterdependent. Especially on the frontier many communities were stilleconomically self-sufficing, but to an increasing extent thedevelopment of commerce and manufacturing was everywhere calling for acloser coöperation between various sections of the country. TheAnnapolis Convention of 1786, indeed, was called for the purpose ofpromoting commercial coöperation among the states. According toProfessor Beard, the formation of the Federal Constitution itself mayin large measure be traced to the desire throughout the country forinterstate coöperation in industry and commerce. 30. AMERICAN DEMOCRACY IN 1787. --The constitutional convention of 1787expanded American democracy from a local idea to a political conceptof national proportions. But though this was an important stepforward, American democracy had not yet been fully developed. Religious freedom, indeed, had been guaranteed by the Constitution, but the suffrage was still narrowly restricted. The adoption of theConstitution was due primarily to negative forces; the fulldevelopment of the positive forces, upon which the ultimate integrityof the union rests, was to be delayed for almost a century. The statestechnically abandoned state sovereignty when they accepted theConstitution of 1787, but not until the Civil War had been won waspermanent union assured. Most important of all, American democracy wasin 1787 only a political concept. There was at that time no suspicionthat democracy was later to be expanded into a philosophy of life, applicable not only to purely governmental affairs, but to theindividual in his economic and social relations as well. QUESTIONS ON THE TEXT 1. Distinguish between local and national spirit in the Revolutionaryperiod. 2. Describe the first notable attempt at union. 3. What plan of union was proposed by Benjamin Franklin in 1754? 4. Name several other early attempts at union. 5. Outline the character of the Articles of Confederation. 6. What were the chief defects of the Confederation government? 7. Describe the failure of the Confederation government. 8. Outline clearly the three important reasons for the failure of thestates to unite before 1787. 9. Explain the phrase, "Negative forces favoring union. " 10. To what extent was the constitutional convention of 1787 theresult of positive forces? 11. Explain clearly the statement that in 1787 American democracy hadnot yet been fully developed. REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter iii. Or all of the following: 2. Becker, _Beginnings of the American People_, chapter v. 3. Fiske, _The Critical Period of American History_, chapter iv. 4. Guitteau, _Government and Politics in the United States_, chapterxix. 5. McLaughlin, _The Confederation and the Constitution_, chapter xiii. QUESTIONS ON THE REQUIRED READING 1. In what sense was Benjamin Franklin the first American? (Becker, pages 190-200. ) 2. Describe the commercial warfare carried on by the several statesduring the critical period. (Fiske, pages 144-147. ) 3. Explain why American credit in Europe failed during the criticalperiod. (Fiske, pages 155-157. ) 4. Describe the attempts to patch up the Confederation government. (McLaughlin, chapter xiii. ) 5. Explain the statement that "division is sometimes the prelude tomore effective union. " (Becker, pages 189-191. ) 6. What did the Alexandria Conference of 1785 accomplish? (Guitteau, page 215. ) 7. What was the Virginia plan? (Guitteau, page 217. ) 8. What was the New Jersey plan? (Guitteau, page 217. ) 9. What was the "Great Compromise"? (Guitteau, page 218. ) 10. What was the Three-Fifths Compromise? (Guitteau, pages 218-219. ) 11. Describe the opposition to the ratification of the Constitution(Guitteau, pages 222-224. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Trace the beginnings of railroad transportation in your section, and describe the effect of improved methods of transportation upon theability of different communities in your section to coöperate with oneanother. (Consult local histories. ) 2. To what extent does the newspaper help you to understand thecharacter and ideals of individuals beyond your community? 3. Contrast the telephone and the postal service as influencing thedevelopment of the coöperative spirit in the city. In rural districts. 4. To what extent would improved methods of transportation andcommunication lead to a closer coöperation between the rural and urbandistricts in your state? 5. To what extent has the economic interdependence of differentmembers of your community led to a better understanding? To a closeridentity of interests? II 6. Difficulties of travel in colonial times. (Crawford, _Social Lifein Old New England_, chapter _x_. ) 7. Postal facilities in the colonial period. (Bogart, _EconomicHistory of the United States_, pages 82-83. ) 8. Diversity of economic interests among the colonies. (Bogart andThompson, _Readings in the Economic History of the United States_, pages 29-42. ) 9. Union under the Continental Congresses. (Beard, _AmericanGovernment and Politics_, pages 21-25. ) 10. The delegates to the Constitutional Convention of 1787. (McLaughlin, _The Confederation and the Constitution_, pages 187-190. ) 11. The work of the Constitutional Convention. (Beard, _AmericanGovernment and Politics_, pages 44-53. See also any other standardtext on American history or government. ) 12. Madison's criticism of the Articles of Confederation. (Beard, _Readings in American Government and Politics_, pages 38-43. ) 13. Hamilton's plea for a strong national government. (Beard, _Readings in American Government and Politics_, pages 47-49. ) 14. The influence of economic interests upon the Constitution of 1787. (Beard, _An Economic Interpretation of the Constitution of the UnitedStates_, pages 324-325. ) 15. The outlook for American democracy in 1789. (Bryce, _ModernDemocracies_, vol. Ii, chapter xxxviii. ) CHAPTER IV ESSENTIALS OF AMERICAN CONSTITUTIONAL GOVERNMENT 31. THE AIM OF THIS CHAPTER. --The form of government established inthis country by the Constitution of 1787 is known as a republic. Arepublic may be defined as a representative democracy, or, in thepopular sense of the term, simply as a democracy. Now, to point outthat a government is democratic does not necessarily mean that it is asound government. Granting that self-government is morally right, thefate of a democracy will depend, partly upon the character of thepeople, and partly upon the nature of the governmental machinerythrough which that people expresses its will. The proof of democracyis in its workings. The aim of this chapter is not to pass judgmentupon democracy, but rather to outline the essential characteristics ofAmerican constitutional government. When this background has beensecured we shall be in a position to begin a detailed study of applieddemocracy, to point out its merits, to call attention to its defects, and to consider how and to what extent it may be improved. 32. STRENGTH. --American constitutional government is a stronggovernment. The weaknesses of the Articles of Confederation wereavoided in framing the Constitution of 1787. Whereas the Confederationgovernment was really headless, the Constitution of 1787 provided fora strong executive. The Confederation Congress could not levy taxes, but the Congress of the United States has adequate powers in thisregard. There can be no recurrence of one of the chief financialtroubles of the Revolutionary period, for at the present time theseveral states may neither coin money nor emit bills of credit. TheFederal government has exclusive control of foreign affairs, so thatno state may individually enter into any agreement with a foreignpower. The Federal Constitution is the supreme law of the land, and nostate action may contradict it. Unity has given us strength, and greatcrises, such as the Civil War and the World War, have ended byincreasing that strength. 33. THE CHECK AND BALANCE SYSTEM. --A striking characteristic featureof American constitutional government is the check and balance system. By this system we mean all those constitutional provisions whichdivide and subdivide governmental power among various sets of publicagents. [Footnote: For a fuller discussion of the check and balancesystem see Chapter XXXIX. ] This division of powers is threefold. First, there is a division ofpower between the Federal government and the governments of theseveral states. The states are obliged to act in concert on mostquestions involving the nation as a whole, but the FederalConstitution safeguards the rights of the states by reserving to themall powers not specifically delegated to the Federal government. Second, in both Federal and state governments, power is still furtherdistributed among the executive, legislative, and judicial branches insuch a way that each branch constitutes a check upon the other two. Third, in both Federal and state governments there is a division ofpower within each of the three branches of government. Thus both thePresident of the United States and the governors of the various statesare at least partially controlled by subordinate executive officials, while in the legislative branch of both Federal and state governmentsthe upper and lower houses constitute a check upon one another. In thecase of both Federal and state judicial systems there is a division ofjurisdiction. 34. THE CHECK AND BALANCE SYSTEM SECURES STABILITY. --Americangovernment is not only strong, it is stable. This stability is duechiefly to the admirable way in which different governmental agentsare balanced against one another. The check and balance system rendersus safe from the danger of anarchy, for though ultimate control isvested in the people, sufficient powers are entrusted to thegovernmental mechanism to protect it against popular passion. Thesystem likewise protects us against despotism. So long as theConstitution endures, neither the Federal government nor thegovernments of the states may destroy each other. The undueconcentration of political power is likewise rendered difficult by thedivision of power between the legislative, executive, and judicialbranches of both Federal and state governments. The significance of a properly applied check and balance systemappears clearly when we compare our government with that of variousother republics. In many of the ancient republics, for example, thepowers of government were so unequally and so indefinitely dividedthat republican government degenerated either to despotism or toanarchy. Within the last century many Latin-American republics havemodeled their governments after ours, and yet some of these republicsare constantly threatened by either revolution or despotism. Theexplanation of this, according to Elihu Root, is that these republicshave adapted our check and balance system so carelessly that they findit difficult, if not impossible, to maintain a really stablegovernment. [Footnote: Here we are pointing out the fundamental meritsof the check and balance system; later (Chapters XXXIV, XXXV, andXXXVI) we shall have occasion to notice some of the disadvantages ofthis system. ] 35. THE RIGHTS OF THE INDIVIDUAL. --We have not purchased strength andstability at the expense of personal freedom, for both Federal andstate constitutions specifically safeguard the rights of theindividual. The fundamental guarantees set forth in the Magna Charta, the Petition of Right, and the Bill of Rights were cherished by theAmerican colonists, and in 1791 they formed the basis of the first tenAmendments to the Federal Constitution. Provisions similarly designedto safeguard individual rights are found in the constitution of everystate in the Union. [Footnote: For an enumeration of these rights, seethe first ten Amendments to the Federal Constitution, Appendix. Consult also the Bill of Rights in the constitution of your state. ]From the beginning of our national history a fundamental principle ofAmerican government has been to allow the individual as much freedomof thought and action as is compatible with the general welfare. 36. CONTROL BY THE PEOPLE. --Under American constitutional government, sovereignty resides with the people as a whole, though the people actthrough their chosen representatives. There is no power in Americangovernment beyond that created or permitted by the people themselves. The suffrage, so narrowly restricted in the eighteenth century, hassince widened to include the great majority of adults, both male andfemale. Elections are frequent, so that ill-chosen officials may notlong abuse their position. The Initiative, the Referendum and theRecall are methods of popular control which in many sections arespreading. Constitutional amendment in the United States is not easy;on the other hand, if any considerable percentage of the voters evincea sustained desire for change, an amendment is the normalresult. [Footnote: In Part IV of the text we shall consider thedangers of an over-extension of popular control; here it is onlynecessary to point out that American government is essentiallygovernment by the people. ] 37. EFFICIENCY. --The division of functions between the Federal andstate governments on the one hand, and between state and localgovernments on the other, provides a solid foundation for theeconomical administration of government. The Federal government attends to most matters which are of nationalimportance, and which cannot properly be looked after by the statesindividually. For example, foreign relations, the postal service, andthe coinage of money, are Federal functions. The separation of Federaland state functions is not always clear, but such matters ascontracts, property rights, crime, and education are probably bestadministered by the state. There is, similarly, no sharp dividing linebetween the functions of state and local governments, but at presentit appears that the local authorities are the most efficientadministrators of roads and bridges, water and paving, the elementaryschools, and similar concerns. The essential economy of this threefold division of functions is thateach of the three sets of officials tends to concern itself with thosematters with which it is best acquainted, and which are mostadvantageously administered by it. 38. UNITY. --The earlier European critics of our government declaredthat the division of powers between Federal and state governmentswould encourage civil strife. It is true that this division of powershas resulted in a decentralized rather than in a centralized form ofgovernment. It is equally true that the quarrel over states' rightswas the fundamental cause of the Civil War. But that war settled thequestion of states' rights once and for all, and there has never againbeen any serious question as to the proper status of states and Union. American democracy has been found compatible with unity. Nor has the decentralized character of American government kept usfrom presenting a united front in foreign wars. The concentration ofwar powers in the hands of President Lincoln during the Civil War wasmatched by the temporary dictatorship wielded by President Wilsonduring the World War. In both cases, the national executive became, for the period of the emergency, as powerful and as efficient as theexecutive of a highly centralized monarchy. This ability to exhibitunity of control and singleness of purpose in war-time enables us toclaim for our form of government one of the most important assets ofthe centralized monarchy. 39. THE SPIRIT OF PROGRESS. --Certainly one test of good government isthe extent to which it renders the masses of the people happy andprosperous. American government has not yet exhausted thepossibilities of helpfulness, but one of the chief aims of ourpolitical system is to encourage the individual in every pursuit whichis legal and honorable. Lord Bryce has called America the land ofHope, because in spite of the defects of American government, afeeling of buoyancy and optimism is characteristic of our politicalinstitutions. America might also be called the land of Sane Endeavor, for we lend force and justification to our optimism by consistentlyworking for the attainment of our ideals. To improve every conditionof American life, and yet to work in harmony with the principles ofconstitutional government, that is our ideal. Progress must comethrough authorized channels, for, as Abraham Lincoln has said, "amajority, held in restraint by constitutional checks and limitations, and always changing with the deliberate changes of popular opinion andsentiment, is the only true sovereign of a free people, and whoeverrejects it does of necessity fly to anarchy or despotism. " QUESTIONS ON THE TEXT 1. Upon what does the fate of a democracy depend? 2. Contrast the strength of our present government with the strengthof the government established by the Articles of Confederation. 3. What is the check and balance system? Explain clearly. 4. Show how the check and balance system renders American governmentstable. 5. Why is stability not a feature of some of the Latin-Americanrepublics which have adapted our check and balance system? 6. What can be said as to the rights of the individual under Americanconstitutional government? 7. To what extent is American government subject to popular control? 8. How does American government provide for a solid foundation for theeconomical administration of government? 9. What charge did the earlier European critics bring against Americangovernment? Has history substantiated or disproved this charge?Explain. 10. Compare the American democracy with a monarchy with respect toefficiency in war-time. 11. Why may America be called the land of Hope? To what extent may itproperly be called the land of Sane Endeavor? 12. What did Lincoln say as to the only true sovereign of a freepeople? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter iv. Or all of the following: 2. Beard, _American Government and Politics_, chapter viii. 3. Bryce, _The American Commonwealth_, vol. Ii, chapters c and cii. 4. Cleveland and Schafer, _Democracy in Reconstruction_, pages 48-66. 5. Root, _Addresses on Government and Citizenship_, pages 98-117. QUESTIONS ON THE REQUIRED READINGS 1. What is meant by the doctrine of limited government? (Beard, pages145-147. ) 2. What are the two classes of constitutional limitations upon theFederal government? (Beard, pages 147-148. ) 3. Describe the position of the judiciary in American government. (Beard, pages 164-165. ) 4. What was the attitude of the republics of Greece and Rome towardthe individual? (Root, page 98. ) 5. Contrast this attitude with the "Anglo-Saxon idea. " (Root, pages98-99. ) 6. Why is it important that a constitution be a written document?(Cleveland and Schafer, pages 54-S5. ) 7. Why is it dangerous to suspend the constitutional guarantees ofpersonal liberty? (Root, pages 114-115. ) 8. What faults have philosophers and popular writers generallyattributed to democratic governments? (Bryce, pages 613-614. ) 9. To what extent are these faults attributable to American democracy?(Bryce, pages 614-629. ) 10. Explain the capacity of our government to develop great vigor. (Bryce, pages 650-652. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a study of a club or society of which you are a member, orwith which you are familiar. To what extent does its organizationillustrate the check and balance system? 2. Classify local or state officials in your commonwealth, in order toshow differences in term and differences in the method of choosingthem. To what extent do these differences constitute a check andbalance system? 3. Make a list of the guarantees of personal liberty which arecontained in the constitution of your state. Compare this list withsimilar lists made from the constitutions of other states. Compare thelist with the first ten Amendments to the Federal Constitution. 4. Methods by which the constitution of your state may be amended. 5. Make a list of the chief public activities in your community orsection. Which are local, which state, and which Federal? Do youbelieve that any of these functions could be more advantageouslyperformed by some other division of government than that which is nowperforming it? Give reasons. II 6. "Why democracy is best. " (Tufts, _The Real Business of Living_, chapter xxxvii. ) 7. Philosophy of the American constitutional system. (Beard, _Readingsin American Government and Politics_, pages 49-53. ) 8. The relation of Federal and state governments in the United States. (Guitteau, _Government and Politics in the United States_, chapterxxi. ) 9. Framework of American government. (Bryce, _Modern Democracies_ vol. Ii, chapter xxxix. ) 10. The check and balance system. (Bryce, _Modern Democracies_, vol. Ii, chapter lxiii. See also any standard text on American government. ) 11. The theory of the separation of powers. (Beard, _Readings inAmerican Government and Politics_, pages 138-140. ) 12. The supremacy of Federal law. (Beard, _Readings in AmericanGovernment and Politics_, pages 140-143. ) 13. The meaning of liberty. (Bryce, _Modern Democracies_, vol. I, chapter vi. ) 14. The meaning of equality. (Bryce, _Modern Democracies_, vol. I, chapter vii. ) 15. A brief comparison of the American and European systems ofgovernment. (Bryce, _The American Commonwealth_, vol i, chapter xxv. ) 16. American democracy contrasted with other democratic governments. (Bryce, _Modern Democracies, vol_. Ii, pages 446-452. ) 17. Democracy compared with undemocratic forms of government. (Bryce, _Modern Democracies_, vol. Ii, chapter lxxiv. ) 18. Efficiency of American democracy in the World War. (West, _The Warand the New Age_, chapter x. ) CHAPTER V THE PROBLEMS OF AMERICAN DEMOCRACY 40. NO GOVERNMENT IS PERFECT. --All government is a compromise, in thatit is adopted or created for the purpose of harmonizing the interestsof the individual with the interests of the group. The types ofgovernment are numerous, varying with the character of the group, andwith the particular conditions under which it exists. But we know ofno government which is perfect: all have shortcomings, some veryserious, others less so. There is nothing to be gained, therefore, bydebating whether or not American government is imperfect. A much moreprofitable question is this: What are the faults of Americandemocracy, and how may they be eliminated or minimized? The mostconstructive work which the American citizen is called upon to do isto grasp the character of the problems confronting his country, andthen to attempt their solution. 41. THE WIDENING CIRCLE OF PROBLEMS. --The last two centuries haveconstituted an age of rapid change and development in all of the majorphases of civilization. There have been rapid shifts in population, particularly in the younger countries of the world. Importantdiscoveries have greatly increased our knowledge of natural science;epoch-making inventions have revolutionized manufacturing, commerceand transportation. In every civilized land there have beenreadjustments of political beliefs, as well as important changes inintellectual, religious, and social standards. Such an age ispeculiarly an age of problems: it is a period of change and stress, atime of readjustment, of adaptation to changed conditions, of growth, and of development. We in America are confronted by an ever widening circle of problems, and this chiefly for two reasons. In the first place, we have felt theimpact of those forces which for the last two centuries have beencreating problems the world over. In the second place, the wholeperiod of our national development has fallen within this age ofchange and readjustment This means that we have had to grapple withthe problems common to all modern countries during a period in whichthe origin and development of American democracy have been creatingpurely domestic problems. These facts at least partially explain thegrowing importance of the problems of American democracy during thepast century. 42. EFFECT OF AN ENLARGED SOCIAL CONSCIENCE. --Many of the issues ofcontemporary American life have come into prominence because we haveenlarged the concept of democracy within the last century. The termdemocracy has come to imply, not merely a form of government, butactually a philosophy of life stressing justice and happiness for theindividual, whether in his political, social, or economic capacity. The more humanitarian our view, the more situations calling for remedyfall within it. Child labor, to give a single example, was notgenerally considered an evil a century ago, but to-day an enlargedsocial conscience condemns it. 43. NECESSITY OF AVOIDING PATERNALISM. --The solution of many nationalproblems implies an extension of government control. Now, it is notgenerally appreciated that while an enlarged social conscience hasincreased the number of our problems, the individualistic strain inthe American nature resists that paternalism which at present appearsnecessary to an effective treatment of certain problems. We are behindGermany in legislation designed to prevent industrial accidents, lessen the evils of unemployment, and otherwise protect the workeragainst the risks of industry. But Germany has built up this system ofsocial insurance by restricting personal liberty, and by greatlyextending the power of government over the individual. The great taskconfronting our government is to do as much for the individual as anypaternalistic government, without endangering his rights by an undueextension of governmental control. 44. THE COMPLEXITY OF OUR PROBLEMS. --The mistake is sometimes made ofthinking that national issues can be nicely defined, and separatedfrom one another. The human mind has its limitations, and we are proneto emphasize the outline and content of particular problems in orderto perceive their essential character the more clearly. But thoughthis is permissible for purposes of study, we must bear in mind thatthe questions which we are to discuss are connected with one anotherin a most baffling way. To understand the administration of charity, for example, we ought to know the social, economic, and politicalbackground of the community under observation. The thorough study ofthis background would lead us to crime, education and other problems, which in turn have their connections with issues still further removedfrom the immediate problem of charity. The thorough understanding of aspecific question thus implies consideration of many inter-relatedquestions. Likewise, the solution of a particular question affects andis affected by the whole mass of related phenomena. 45. IMPORTANCE OF THE ECONOMIC BACKGROUND. --It would be unwise, perhaps, to claim that any definite group of problems is of greaterimportance than any other group. But at least we may say that someproblems are primary in origin, while others appear to be secondary, _i. E. _ derived from those called primary. In the chapters whichfollow, the attempt has been made to arrange the groups of problemswith some regard to their primary or secondary origin. Probably themost fundamental problems which face us to-day are those of economicorganization. Properly to understand these problems the student mustfirst grasp the essential facts of American industry. We shall beginour study of the problems of American democracy, therefore, with asurvey of the economic life of the nation. Only after we have masteredthe principles upon which American industry is based, shall we be in aposition to solve the problems which arise directly from the nature ofour economic organization. 46. INDUSTRIAL REFORM. --Our industrial life is so clearly based uponcertain fundamental institutions, such as private property, freecontract, and free competition, that an industrial "system" is said toexist. Certain great evils, notably poverty, have accompanied thedevelopment of this system. We shall discuss a number of programsdesigned to eliminate these evils. The doctrine of single tax is ofinterest as advocating the abolition or confiscation of land value. The coöperative conduct of industry is of increasing importance oflate years. We must also reckon with socialism as a movement whichseeks the redistribution of wealth. Under the general head ofsocialism we shall have occasion to notice a small but active groupknown as the Industrial Workers of the World, and the larger, thoughrelated, group which recently conducted a socialist experiment inRussia. The discussion of socialism completed, we shall sum up theattitude of American democracy toward the whole problem of industrialreform. 47. SOCIAL PROBLEMS. --Of the social problems which grow out of a badeconomic situation, none is more vital than the fostering of peace andgood will between labor and capital. Following the discussion ofindustrial relations, we shall have occasion to notice a whole seriesof social questions which have either been derived from, oraccentuated by, the rapid industrialization of our country. Gravequestions arise in connection with immigration, health, and thecityward drift. The consideration of the problems of the city in turndirects attention to the necessity of a normal rural life, and to theimportance of safeguarding the American home. Dependency is a familiarproblem, but one which, in the light of an awakened community spirit, is now being studied from new and interesting angles. Last amongsocial problems is the fundamental matter of education. It is not toomuch to claim that the ultimate fate of American democracy depends, toa great extent, upon the vigor and intelligence with which we improveand extend our educational system. 48. RELATION OF GOVERNMENT TO BUSINESS. --Since our material well-beingrests upon an economic basis, the public has a vital interest inbusiness. The rise of great corporations and the necessity ofsafeguarding the public from monopolistic abuses make necessary acareful examination into the relation of government to business. Weshall meet with this question: Shall the government regulate, oractually own, businesses of vital importance to the public? Equallyknotty, but fully as interesting, is the tariff question. ShouldCongress tax foreign goods entering this country, and, if so, uponwhat principles should this tax be determined? This will bring us tothe general problem of taxation, a subject to which the Americanpeople will probably devote an increasing amount of attention in thenext few decades. The question of conserving our natural resourcesmust also be discussed. Last in this group of problems may bementioned the question of money and banking. In discussing thisimportant subject we shall notice, among other things, the interestingFederal reserve system, which, it is hoped, will protect us frompanics in the future. 49. PROBLEMS IN EFFECTIVE GOVERNMENT. --The economist has good reasonfor declaring that the getting of a living is one of the mostfundamental concerns in life; on the other hand, no people can longget a comfortable living without the aid of a helpful system ofgovernment. Government must be made effective. This introduces us toanother series of problems. First of all, who shall share ingovernment? And how may we improve the methods by which we select theagents of government? How may corruption and inefficiency beeliminated from American government? What is the significance of theInitiative, the Referendum, and the Recall? These questions must prove of fascinating interest to those who thinkof democracy as a living institution which is constantly growing, developing, adapting itself to changed conditions. 50. WHAT IS THE PROMISE OF AMERICAN LIFE?--Rich in natural resources, ample in extent, encouraging to man's helpful efforts, Americafulfills the first condition of national greatness. Intelligent andindustrious, law-abiding and, devoted to the building of homes, ourpopulation fulfills the second condition. Here we have all the raw materials out of which to build a greatnation. Already we have made marked contributions to civilization, andyet it should not be forgotten that our chief claim to nationalgreatness rests upon the promise which we show of being able toperfect American democracy. To what extent will this promise actually be realized? As a nation weare yet young, as a people we have scarcely begun the greatestexperiment in democracy which the world has ever seen. Shall weendure, shall we attain to a half-success, shall we succeedgloriously? Much depends upon the extent to which each of us assumes theresponsibilities of citizenship. Those who have gone before usconquered a wilderness, expanded and preserved the Union. But it isnot for us complacently to accept the result. Much has been done, butmuch more remains to be done. Our goal is the greatest possibleperfection of our economic, social and political life. Each age may besaid to have its peculiar burdens and responsibilities: the prime taskof the colonist was to foster the tender shoot of democracy; that ofthe western pioneer was to fashion homes out of a wilderness; theburden of our generation is to grapple with the present-day problemsof American democracy. Without a high sense of personalresponsibility, coupled with an intelligent and consistent effort, wecan never reach the high goal admittedly possible. 51. THE POINT OF VIEW IN PROBLEM STUDY. --To see American democracy andto see it as a whole should be our aim throughout the remainder ofthis book. Now this is not easy. The danger is that the unwary studentwill interpret the large amount of space devoted to "problems" asmeaning that American life is preeminently unsettled and defective. This is a temptation to be guarded against. Though we shall uncovermany defects, it should be remembered that we are predominantly anormal, healthy, prosperous people. But our virtues demand ourattention less urgently than do our defects. If we seem to beoverconcerned with the defects of American life, the student shouldnot conclude that American life is primarily defective. Rather, heought to realize that it is precisely because a situation involves aproblem that our attention is challenged. Nor should problems be looked upon as something to be ashamed of. Where life is dull and civilization static, there are relatively fewproblems; where life is progressive and civilization steadilyadvancing, problems are numerous and pressing. Problems implyadjustment, development, the desire for improvement and advancement. They are signs of progress, the growing pains of civilization. If webear this in mind, we shall be in a fair position to see Americandemocracy in true perspective, without undue distortion of ourviewpoint, and without prejudice to our judgment. QUESTIONS ON THE TEXT 1. Why is there nothing to be gained by debating whether or notAmerican democracy is imperfect? 2. Why has the circle of our problems been steadily widening duringthe last century? 3. Trace the relation between an enlarged social conscience and thenumber of problems confronting us. 4. What is one danger of paternalism? 5. Give a definite example to illustrate the complexity of our modernproblems. 6. Discuss the importance of the economic background in problem study. 7. What problems may be included under the term "industrial reform"? 8. What problems arise in connection with public interest in business? 9. Name some of the problems arising in connection with the need foreffective government. 10. What is the importance of individual responsibility in studyingthe problems of American democracy? 11. Outline clearly the point of view to be maintained in studyingthese problems. REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter v. Or all of the following: 2. Bryce, _The American Commonwealth_, vol. Ii, chapters ci, cxiv, cxix, and cxxii. 3. Dunn, _The Community and the Citizen_, pages vii-xii. 4. McLaughlin, _Steps in the Development of American Democracy_, chapter viii. QUESTIONS ON THE REQUIRED READINGS 1. What, according to Lord Bryce, are the essential intellectualtraits of the masses of the American people? (Bryce, pages 825-826. ) 2. Lord Bryce says that "there are elements in the life of the UnitedStates which may well make a European of any class prefer to dwellthere rather than in the land of his birth. " What are these elements?(Bryce, pages 870-873. ) 3. What comment does Lord Bryce make upon the quality of humor in theAmerican character? (Bryce, page 876. ) 4. What three advantages does the United States have over Europeancountries in the matter of grappling with modern problems? (Bryce, page 912. ) 5. Explain the statement that "Democracy rests on faith. " (McLaughlin, pages 181-182. ) 6. What is meant by the statement that "Democracy is fundamentally amatter of human relationships"? (McLaughlin, pages 189-190. ) 7. What, according to Lord Bryce, are the four chief defects ofAmerican democracy? (Bryce, page 632. ) 8. What are the essential qualities which civic education should aimto cultivate? (Dunn, pages xi-xii. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a list of the problems which in any way affect you as acitizen in the community. List these problems in the order in whichthey occur to you, or are discovered by you. Comment upon the confusedand disorderly appearance of the problems so listed. 2. Classify the problems on your list according as they are economic, social or political. 3. Classify the problems on your list according as they are local, state or national. 4. Comment upon the complexity and inter-relationship of the problemsso classified. 5. What agencies, public, semi-public, or private, are studying theproblems on your list? 6. What difference of interest do the citizens of your community showin local, state and national problems? II 7. Defects of democratic government the world over. (Bryce, _ModernDemocracies_, vol. Ii, pages 452-454. ) 8. The background of the problems of American democracy. (Merriam, _American Political Ideas_, chapter i. ) 9. The hindrances to good citizenship. (Bryce, _Hindrances to GoodCitizenship_. ) 10. The promise of American life. (Croly, _The Promise of AmericanLife, _ chapter i. ) 11. Attitude of the individual in a democracy. (Hughes, _Conditions ofProgress in Democratic Government_. ) 12. The power of ideals in American history. (Adams, _The Power ofIdeals in American History_. ) 13. Ideals of citizenship. (Woodburn and Moran, _The Citizen and theRepublic_, chapter xx. ) 14. The future of democracy. (Bryce, _Modern Democracies_, vol. Ii, chapter lxxx. ) PART II--AMERICAN ECONOMIC PROBLEMS A. ECONOMICS OF AMERICAN INDUSTRY CHAPTER VI THE NATURE OF AMERICAN INDUSTRY 52. MAGNITUDE OF AMERICAN INDUSTRY. --In colonial times the major partof American industry was concentrated along the Atlantic seaboard; to-day it extends over a large part of the continent. A century and ahalf ago our industrial system was still a relatively simple one, giving rise to few pressing problems of national importance; at thepresent time it is a vast and complicated affair, closely bound upwith many of the most vital problems which confront Americandemocracy. The activities which are commonly grouped under the head of"American industry" are so numerous and so varied that a descriptionof all of them would carry us beyond the limits of this chapter. Nevertheless, it is important that we secure some understanding ofthese activities. A few pages may profitably be spent, therefore, indiscussing certain basic facts of American industry. 53. FAVORABLE LOCATION OF THE UNITED STATES. --Let us commence bynoting that the location of the United States is favorable to thedevelopment of industry. Of the two American continents, the northernhas the greater natural advantages. Each continent is roughly in theform of a triangle with the apex or smaller end pointing southward, but whereas the larger end of the South American triangle is withinthe tropic zone and only the tapering end is within the more favorabletemperate zone, the greater part of the North American triangle iswithin the temperate zone. With regard to location for world trade thenorthern continent again has the advantage: the ports of South Americaface a relatively empty ocean on the west and the little-developedcontinent of Africa on the east; the ports of North America, inaddition to being more numerous and more suitable for commerce thanthose of the southern continent, face the teeming Orient on the west, and the great markets of Europe on the east. Moreover, the UnitedStates occupies the choicest portions of the North American continent. Our neighbor Canada has a cold and snow-bound frontier on her north, while on our south Mexico and the Central American countries lie nearthe tropics. The heart of temperate America, on the other hand, isincluded within the territory of the United States. 54. POPULATION. --Scarcely less important than the favorable locationof the United States is the character of the people occupying thecountry. From less than four million in 1790, our population hasincreased so rapidly that in 1920 there were 105, 710, 620 people withinthe bounds of continental United States. As the population hasincreased, it has spread over the Appalachians, into the greatMississippi basin, and westward to the Pacific Ocean. Accompanying theincrease and westward spread of the population has come a greatervariety of racial types. Although our population was varied incolonial times, the great majority of the settlers were from theBritish Isles and northwestern Europe. In the latter part of thenineteenth century immigration from northern Europe declined and moreand more immigrants began to come from southern and southeasternEurope. So universal has been the attraction of America, that ourpresent population includes elements from every important country inthe world. From the industrial standpoint, the dominantCharacteristics of this composite American people are energy andversatility. 55. NATIONAL WEALTH. --Generations of industrious people have helped tomake the United States the wealthiest nation in the world. It has beenestimated that in 1850 our national wealth amounted to $8, 000, 000, 000. By 1900 the remarkable progress of American industry had increasedthis figure to more than $88, 000, 000, 000. In 1912 our wealth wasprobably in excess of $180, 000, 000, 000. Industrial and financialdisturbances during the period of the World War make later estimateshazardous, nevertheless it is interesting to note that in 1921 thewealth of the United States was estimated as being between$350, 000, 000, 000 and $400, 000, 000, 000. According to this estimate, thewealth of this country exceeded, in 1921, the combined wealth of GreatBritain, France, Germany, Italy, and Belgium. In weighing the value ofthis comparison, however, we must take into consideration the heavydestruction of wealth in western Europe because of the World War. 56. WHAT THE AMERICAN PEOPLE ARE DOING. --A large percentage of theinhabitants of the United States are engaged in some form ofproductive work. According to the most recent estimates there areapproximately fifty million persons, male and female, over ten yearsof age, engaged in gainful occupations in this country. Of these aboutfourteen million are engaged in agriculture and allied industries, while more than eleven million are busy in manufacturing pursuits. Almost four million are found in some form of trade, and another fourmillion are employed in domestic and personal service. Transportation, clerical work, and professional callings utilize the services ofseveral additional million. The great majority of those employed inAmerican industry are men, although the number of women in industry issteadily increasing. Children have been found in industrial pursuitssince colonial times, but of recent years there is a growing movementto restrict or prohibit the employment of children in gainfuloccupations. 57. FORESTS AND MINERALS. --The natural resources of the United Statesplay a large part in our industrial life. One fourth of the territoryof the United States is still covered with timber. We are abundantlysupplied with coal and iron, the two most important industrialminerals. Our coal deposits outrank, both in quantity and in quality, those of any other country. Iron is found in most of the states in theUnion, the high-grade deposits of the Lake Superior area being ofspecial importance. We produce more than half of the world's supply ofcopper, which, after coal and iron, is the most important industrialmineral. Our supply of petroleum and natural gas is large, and inspite of the waste which has characterized our use of these importantcommodities, our production of both is still great. Gold, silver, zinc, lead and phosphates are produced in the United States in largequantities. Indeed, we have ample supplies of practically all of theminerals of importance to industry, except platinum, tin, and nickel. 58. AGRICULTURE. --Until very recently, at least, agriculture has beenby far our most important industry. Of the two billion acrescomprising continental United States, approximately half are undercultivation. In most sections of the country the quality of the soilis good, and rainfall is ample. We have long led the world in thevalue of farm crops grown. Our production of wheat, corn, oats, barley, rye, and dairy products totals an enormous figure. The steadyenclosure of lands formerly used for grazing stock is restricting ourproduction of food animals, but we are still important as a producerof meats. Most of the world's tobacco is grown in this country. Theworld's supply of cotton is derived mainly from southern UnitedStates. Finally, our soil is of such variety, and our climate sodiversified, that the danger of a general crop failure is slight. Aloss in one part of the country is almost certain to be offset by goodcrops in another. 59. MANUFACTURING. --In colonial times American manufactures weresubjected to more or less restraint by Great Britain, but after theRevolution these industries entered upon a period of free and rapiddevelopment. Modern machinery was introduced rapidly after 1800, largescale production was developed, transportation was fostered, andlarger and larger markets were supplied with the products of Americanmanufacturers. Particularly since the Civil War has the importance ofour manufactures increased. This increase has been due chiefly to thelarge scale production of foodstuffs, including meats and flour;textiles; iron and steel products; shoes; chemicals; and agriculturalmachinery. According to recent census figures it would appear that weare passing from a predominantly agricultural life to a stage in whichmanufacturing is of relatively greater importance. 60. TRANSPORTATION AND COMMUNICATION. --The physical geography of theUnited States encourages the development of adequate means oftransportation and communication. The St. Lawrence-Great Lakes systemgives easy access to the most fertile section of the continent. TheMississippi and its tributaries drain a million square miles of farmland. We have, in addition to 18, 000 miles of navigable rivers, agreater coast line available for commerce than has the whole ofEurope. New York is the world's greatest seaport. Few mountain ranges hamper the development of transcontinentalrailroads in this country, and of these only one, the Rockies, is aserious obstacle to effective transportation. Our railroad mileage isenormous, a half dozen transcontinental lines being supplemented bynumerous smaller roads and feeding lines. We have more than 2000 milesof canals in operation. Cheap and rapid transportation between thedifferent parts of the country, supplemented by adequate means ofcommunication by telephone, telegraph, and the postal service, undoubtedly has been one of the greatest factors in our nationalprosperity. 61. DOMESTIC AND FOREIGN TRADE. --The great majority of our productsare not shipped to foreign markets, but are utilized within thecountry. We are still so young and so undeveloped a country that ourmanufacturers have been kept busy supplying the domestic market. Thisfact, together with the American manufacturer's lack of knowledgeconcerning the possibilities of foreign trade, explains our neglect offoreign markets. In proportion as our manufacturers catch up with thedomestic market, and in proportion as their knowledge of foreignmarkets increases, it is likely that they will give more and moreattention to customers in other countries. But though a very small proportion of our products are sent abroad, the foreign trade of the United States exceeds in value the foreigntrade of any other country. This predominance is due, not so much toour search for foreign markets, as to the steady demand in othercountries for three classes of goods in the production of which wehave a distinct advantage. These three classes of goods are, first, raw materials of which we have a great abundance, such as cotton andcopper; second, specialties invented and patented by Americans, suchas inexpensive automobiles, typewriters, and phonographs; and, third, commodities which may be advantageously produced by large-scalemethods, such as agricultural machinery and the cheaper grades oftextiles. 62. SUMMARY AND FORECAST. --We have very briefly surveyed some of thebasic facts of American industry. On the one hand, the favorablelocation and the rich natural resources of the United States havefurnished a substantial basis for industrial progress. On the otherhand, we must note that the American people are energetic andversatile, --combining, to a happy degree, the qualities of initiativeand originality, perseverance and adaptability. The great wealth andprosperity of the country as a whole have been the result of thecombination of a favorable land and an able people. This is not the whole of the story, of course. It must be admittedthat, with all of our wealth, we continue to face serious charges ofpoverty and industrial maladjustment. These charges are of greatimportance, but it should be remembered that no problem can be solved, or even intelligently attacked, until the essential facts are well inhand. We have briefly described the nature of American industry. Whatwe have now to do, as a preliminary to considering the problem ofpoverty and industrial reform, is to analyze the economic laws inaccordance with which American industry has developed. The essentialfacts of the next four chapters cannot be weighed too carefully. QUESTIONS ON THE TEXT 1. To what extent has the character of American industry changed inthe last century and a half? 2. Compare North America with South America with respect to naturaladvantages. 3. Outline the changes which have occurred in the population of theUnited States since 1790. 4. Trace briefly the increase in our national wealth since 1850. 5. What are the chief occupations of the American people? 6. Name three important industrial minerals, and comment on our supplyof each. 7. What are the chief characteristics of American agriculture? 8. Outline the growth of our manufacturing industries. 9. How are transportation and communication encouraged by the physicalgeography of the United States? 10. Why is our domestic trade of relatively greater importance thanour foreign trade? 11. To what three types of goods is our predominance in foreignmarkets due? 12. What qualities of the American people have contributed to theirindustrial success? REQUIRED READINGS 1. Williamson, _Readings in American Democracy, _ chapter vi. Or all of the following: 2. Bishop and Keller, _Industry and Trade, _ chapters i and ii. 3. Bogart, _Economic History of the United States, _ chapter i. 4. Fetter, _Modern Economic Problems, _ chapter i. 5. King, _Wealth and Income of the People of the United States, _chapter iii. QUESTIONS ON THE REQUIRED READINGS 1. Describe briefly each of the six regions into which continentalUnited States may be divided. (Bogart, pages 11-12. ) 2. Why has the animal life of the North American continent declined insignificance since colonial times? (Bogart, page 8. ) 3. Into what five divisions may the forests of the United States beclassified? (Bishop and Keller, pages 27-28. ) 4. What may be said as to the temperature of the United States?(Bogart, pages 12-13. ) 5. What may be said as to the extent of rainfall in the United States?(Bogart, page 13. ) 6. Explain the importance of water power in the United States. (Bogart, pages 3-4. ) 7. What changes in farm land values have been brought about in thelast century? (King, pages 22-27. ) 8. Discuss the value of urban land in the United States. (King, pages15-21. ) 9. Why is it extremely difficult to measure the wealth of the UnitedStates? (Fetter, pages 6-10. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Trace the growth in the population of your state since 1880. Whathave been the chief sources of this increase? 2. To what extent has the population of your state been affected byimmigration from Europe? What attracts immigrants to your state? Havethere been any changes in the character of this immigration since1880? 3. Classify the population of your state on the basis of occupation. (Secure data from the State Board of Labor, or State Bureau ofStatistics. ) 4. Estimate the material wealth of your community. What light does theresult throw upon the difficulties of summarizing the wealth of thenation? 5. Discuss the importance in the economic life of your section of (a) Agriculture, (b) Mining, (c) Forestry, (d) Manufacturing. II 6. The economic geography of your section. (Consult Dryer, _ElementaryEconomic Geography_. ) 7. A comparison of America three hundred years ago with the America ofto-day. (Price, _The Land We Live In_, chapters i and ii. ) 8. Character of the American population. (Burch and Patterson, _American Social Problems_, chapter ix. ) 9. An analysis of the American character. (Bryce, _The AmericanCommonwealth_, vol. Ii, chapters cxiv and cxv. ) 10. Ways of getting a living. (Carver, _Elementary Economics_, chapterxv. ) 11. Geographical distribution of cities and industries in the UnitedStates. (Semple, _American History and Its Geographic Conditions, _chapter xvi. ) 12. Agricultural industries in the United States. (Bishop and Keller, _Industry and Trade, _ part ii. Smith, _Commerce and Industry, _chapters i, in, iv, v, and vi. ) 13. Animal industries in the United States. (Bishop and Keller, _Industry and Trade, _ part iii. Smith, _Commerce and Industry_, chapter ii. ) 14. Power. (Smith, _Commerce and Industry_, chapter ix. ) 15. Mineral industries in the United States. (Bishop and Keller, Industry and Trade, part iv. Smith, _Commerce and Industry_, chaptersviii, xiii, xiv, and xv. ) 16. Manufacturing industries in the United States. (Bishop and Keller, _Industry and Trade_, part v. ) 17. Trade routes of North America. (Smith, _Commerce and Industry_, chapter xvi. ) 18. The foreign trade of the United States. (Dryer, _ElementaryEconomic Geography_, chapter xxxii. See also any other recentlypublished text on this general field. ) CHAPTER VII WHAT IS MEANT BY PRODUCTION 63. WHY MEN WORK. --Ultimately everyone depends upon work for hisliving. Young children commonly live upon the earnings of theirparents; most normal adults, on the other hand, depend upon their ownefforts for their living. Since every individual probably worksbecause of a combination of motives, it is possible somewhat toanalyze the reasons why men work. The most fundamental reason forworking is in order to preserve one's life. This assured, theindividual is in a position to work in order to preserve the lives ofthose who are near and dear to him. When the necessities of life havebeen provided, work is commonly continued for the sake of acquiringcomforts or luxuries. Under a well-regulated legal system these efforts of the individualalso benefit the community, but until he is able to support himselfand his family, the average individual does not consciously make thepublic interest the chief end of his labors. However altruistic a manmay be, he will not be able to labor consistently in behalf of others, unless he will thereby serve his own interests as well, or unless hispersonal needs have already been met. 64. THE OLD WAY OF GETTING A LIVING. --The economic history ofeighteenth century England illustrates two rather distinct methods ofgetting a living, one of which may be called the old, and the otherthe new. Up to about the middle of the century, the masses ofEnglishmen, in common with the people of other countries, got a verypoor living. Most common necessities were made in the home and forpurely family use. Shoes, clothing, tools, and similar articles wereproduced laboriously and on a small scale. In comparison withindustrial conditions in the nineteenth century, there was at thattime little industrial coöperation [Footnote: By coöperation is heremeant simply the working together of different persons or groups ofpersons. Coöperation in this sense is to be distinguished fromcoöperation as discussed in Chapter XII. ], little division of labor, little suspicion that men were, in spite of hard work engaged in forlong hours, getting a very poor living. The trouble was, partly, thatmen had not yet fully realized the possibilities of helping oneanother, and partly that they were ignorant of how to make Naturereally an efficient aid in getting them a living. 65. THE NEW WAY OF GETTING A LIVING. --After the middle of theeighteenth century the invention of a series of remarkable machinesenabled Englishmen greatly to increase their productivity, first inthe manufacture of textiles, and later in numerous other industries. By subdividing their labor more and more minutely, and by eachspecializing in the particular type of work which he could do best, men found that their total output could be greatly increased. Thiscomplex division of labor, made possible by the use of water and steampower to run machines and to move vehicles of transportation, reducedthe difficulty of getting a good living, that it constituted averitable revolution in industry. Indeed, this change is known inhistory as the Industrial Revolution. 66. EFFECTS OF THE INDUSTRIAL REVOLUTION. --In the last century and ahalf the Industrial Revolution has spread to every important civilizedcountry in the world, everywhere encouraging the application ofmachine methods to more and more industries. This change fromproduction on a small scale, and often by hand, to large-scaleproduction in factories equipped with complex machines, has hadimportant results. It has so increased our control over Nature thateven the humblest workman of to-day enjoys many comforts denied kingsa few centuries ago. On the other hand, the Industrial Revolution hastended to create a numerous class which depends entirely upon wages, and to set off against this class an employing group which possessesand controls most of the income-producing equipment of industry. Thesignificance of this last development will become clearer as we goalong. 67. NATURE OF MODERN PRODUCTION. --In the study of modern productiontwo fundamental facts confront us. The first is that the economistdoes not define production as merely the making of material objects. We desire material objects only if they will satisfy our wants. Since, also, the satisfaction of wants is the important thing, it is clearthat the performance of a service, such as teaching or painting, maybe more important than the manufacture of a material object which noone wants. Production may thus be defined as the satisfaction of humanwants. The manufacturer of a material object is productive only ifthat object is wanted by someone; he who supplies personal orprofessional service is productive if that service satisfies the wantsof someone. The second fundamental fact which confronts the student of modernproduction is the complexity of our industrial system. Three hundredyears ago most of the commodities in daily use were made, either inthe home and by the family members, or by small groups of artisansworking together under relatively simple conditions. To-day productionis a vast and complicated process. To the eye of the untrainedobserver a great mass of factories, farms, railroads, mills, machines, ships, and busy laborers appears without order and, often, withoutpurpose. The task immediately before us is to analyze this mass, andto point out the nature of the various factors which contribute to theproductive power of a community. 68. NATURE A FIRST FACTOR IN PRODUCTION. --Nature is defined by theeconomist as inclusive of all of the materials and forces furnished inthe form of land and its products, oceans, lakes, rivers, rain, humidity, and climate. Since Nature is rather a vague term, and since, also, the economist looks upon land as the most important element inNature, we may lump together all of the materials and forces of Natureand apply the term "land. " Taken in this sense, land is clearly of great importance inproduction. We build houses and factories upon it, we use it as abasis of transportation, we harness its motive power, and we makeextensive use of the innumerable raw materials which it furnishes. Without land there could be no production, in the sense in which theeconomist understands the word. 69. MAN'S LABOR A SECOND FACTOR IN PRODUCTION. --Something besidesland, or Nature, is necessary before our wants can be satisfied. Nature is often careless of our needs and desires. True, she offers usberries, coal, firewood, and many other commodities which arepractically ready to use, but even these articles will not satisfy ourwants unless we go to the trouble to secure possession of them. In animportant sense Nature is passive, and if she is to furnish us with aliving, we must engage in labor. This labor may be mental or physical, the important point being that it is effort undertaken to increase ourcontrol over Nature. Savages are content to use products insubstantially the form in which Nature provides them; civilizedpeoples work over the products of Nature until the utility or want-satisfying power of those products has been greatly increased. Man'sliving improves as he progresses from indolence to hard physicallabor, then from hard physical labor alone to a combination ofphysical and mental labor intelligently directed. 70. CAPITAL A THIRD FACTOR IN PRODUCTION. --Land to furnish rawmaterials, and man to make use of those materials, --what more isnecessary? Nothing else would be necessary if all of Nature's giftswere readily accessible, and if man unaided could make the best use ofthem. But Nature hides or disguises many of her treasures, and man isphysically weak. Hence he has hit upon the device of making tools tohelp him in his contest with Nature. During the period of theIndustrial Revolution many simple tools were supplanted by complicateddevices run by power and called engines and machines. To the economisttools and similar devices are a form of capital, capital being definedas inclusive of everything which man has created, or caused to becreated, in order to help in further production. [Footnote: Land hasnot been created by man but is a gift of Nature. Land, therefore, isnot a form of capital. ] The fashioning of hammers and saws, the construction of railways, andthe manufacture of machinery, all these operations create capital. Thesystematic creation and use of capital is one of the distinguishingfeatures of modern civilization. The laborer alone can produce little;aided by capital he can produce much. Capital is not important if oneis willing to live like a savage; on the other hand, it isindispensable if one wishes to enjoy the benefits of civilization. 71. COÖRDINATION A FOURTH FACTOR IN PRODUCTION. --Land, labor, andcapital are factors in production. Two hundred years ago nothing elsewas essential to production. The average individual had his own land, produced his own tools or capital, and relied chiefly or entirely uponhis own labor. But the Industrial Revolution enlarged and complicated production. Itcreated an industrial system in which the individual is generally aspecialist, producing a surplus of his one product, but dependent uponnumerous other persons for most of the things which he personallyconsumes. To-day, for example, there are numerous individuals raisingcattle, the hides of which are to be made into shoes; otherindividuals are perfecting means of transportation so that those hidesmay be carried to market; still other persons concern themselves onlywith the building of factories or with the manufacture of machineswith which to work those hides into shoes. These various individualsand groups may never see each other, nevertheless they aid oneanother. The secret of this often unseen and unconscious coöperation is thatthere are individuals who specialize in the work of connecting up, orcoördinating, the other factors which are necessary to the productionof shoes. These individuals, about whom we shall have more to say inthe next chapter, constitute an important economic group. Theycoördinate, in the example given above, the cattle grower, therailroad manager, the tanner, the factory builder, and themanufacturer, and thus make possible a kind of national or eveninternational coöperation which would otherwise be impossible. Thosewhose function it is to promote this coöperation are, therefore, indispensable factors in modern production. 72. GOVERNMENT A FIFTH FACTOR IN PRODUCTION. --A cursory examination ofmodern industry would convince the observer that land, labor, capital, and coördination are important factors in production. There is, inaddition, a factor which is so fundamental, and of such essentialvalue, that it is sometimes overlooked altogether. This is the work ofthe government in protecting productive enterprises. Government aidsin production by suppressing theft, violence, and fraud; by allowingindividuals to engage in helpful businesses; by enforcing contractsentered into legally; and by punishing many kinds of monopolisticabuses. [Footnote: We shall take up the problem of monopoly inChapters XXVII and XXVIII. ] The whole fabric of American prosperity isbuilt upon the foundation of law and order. 73. SUMMARY AND FORECAST. --Production in the economic sense consistsin doing that which will satisfy human wants. Modern production is avast and complicated process, involving the coöperation of fivefactors: land, labor, capital, coördination, and government. In alater chapter we shall find that there are wide differences of opinionas to the relative importance of some of these factors. We shall find, indeed, that the most vital economic problems which confront Americandemocracy depend for their solution upon a clear understanding of thefacts stated or implied in this chapter. The student ought not, therefore, to accept hastily the statement that land, labor, capital, coördination, and government are necessary in production, but oughtrather to reason out just how and why each is actually helpful inAmerican industry. QUESTIONS ON THE TEXT 1. What are the chief reasons why men work? 2. Describe the "old way of getting a living. " 3. Just what is meant by the "new way of getting a living"? 4. What were the chief effects of the Industrial Revolution? 5. What is the economist's definition of production? 6. Just how does Nature help in production? 7. Explain the relation of Nature to land. 8. Show how man's labor is necessary in production. 9. What is the nature and function of capital? 10. Discuss coördination as a factor in production. 11. Name a fifth factor in production. REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter vii. Or all of the following: 2. Carver, _Elementary Economics_, chapters ix-xiii. 3. Adams, _Description of Industry_, chapter v. 4. Ely, _Outlines of Economics_, chapter viii. 5. Smith, _Wealth of Nations_, Book I, chapters i and ii. QUESTIONS ON THE REQUIRED READINGS 1. What instinct in man gives rise to the division of labor? (Smith, chapter ii. ) 2. Name and distinguish between the two kinds of division of labor. (Carver, pages 77-82. ) 3. How does pin making illustrate the principle of the division oflabor? (Smith, chapter i. ) 4. How does the meat packing industry illustrate the principle of thedivision of labor? (Ely, page 125. ) 5. To what extent does the cotton mill illustrate the principle of thedivision of labor? (Ely, pages 124-125. ) 6. What are the three fundamental advantages which result from thedivision of labor? (Smith, chapter i; Carver, pages 75-76; Ely, page126. ) 7. What are the effects of the complex division of labor upon theworker? (Ely, pages 127-128. ) 8. Describe the chief sources of power utilized by man. (Carver, chapter x. ) 9. Discuss the origin of capital. (Carver, chapter xi. ) 10. What are the two factors which give value to land? (Carver, page111. ) 11. Explain the statement that thousands of individuals coöperate tofurnish the humblest workman with food and clothing. (Smith, chapteri. ) 12. What is the secret of modern industrial efficiency? (Adams, page87. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Visit a factory, mill or shop in your vicinity and study theorganization of the plant with regard to the application of theprinciple of the division of labor. Secure the amount of output perman by dividing the total product by the number of workmen coöperatingin its production. Compare the output per man under these conditionswith the probable output per man if each workman were workingseparately, without material assistance from other workmen. 2. Study, both by inquiry and by observation, the effects of thedivision of labor upon the health and spirits of the workmen in thefactory, mill or shop visited. 3. Classify the industries in your locality on the basis of whetherthey rely chiefly or entirely upon human, animal, water, steam orelectric power. Why does each industry not utilize some other form ofpower than that actually used? 4. Classify some of the familiar occupation groups in your communityaccording as they derive their incomes chiefly or entirely from land, labor, capital, or the process of coördinating land, labor, andcapital. Test the productivity of each group by the standard advancedin section 67 of the text. 5. Attempt to show to what extent each of the five factors ofproduction has contributed toward the erection and furnishing of yourschoolhouse. II 6. The Industrial Revolution in England. (Ely, _Outlines ofEconomics_, chapter iv. Cheyney, _Introduction to the Industrial andSocial History of England_, chapter viii. ) 7. Colonial industries. (_Lessons in Community and National Life_, Series A, pages 73-83; Series B, pages 17-25; Series C, pages 17-25. See also Bogart, _Economic History of the United States_, chapter iv. ) 8. The Industrial Revolution in the United States. (Bogart, _EconomicHistory of the United States_, chapter xii. Ely, _Outlines ofEconomics_, chapter vi. Marshall and Lyon, _Our EconomicOrganization_, chapter viii. ) 9. The significance of the cotton gin. (Consult an encyclopedia. ) 10. Cyrus McCormick and the reaper. (Consult an encyclopedia. ) 11. The story of a loaf of bread. (Wood, _The Story of a Loaf ofBread_. Additional material on this subject may be secured by writingto the International Harvester Company, Chicago. ) 12. The story of iron and steel. (Smith, _The Story of Iron andSteel_, pages 23-126. ) 13. Development of business organization. (_Lessons in Community andNational Life_, Series A, pages 169-178. ) 14. Economic work of the United States government. (Dryer, _EconomicGeography_, chapter xxxiii. ) CHAPTER VIII EXCHANGING THE PRODUCTS OF INDUSTRY 74. RELATION OF THE DIVISION OF LABOR TO EXCHANGE. --In the self-sufficing stage that existed in industry a few hundred years ago, there was generally little necessity for the exchange of products. Each family produced most of the commodities which it needed, anddepended relatively little upon the products of persons outside thefamily circle. But the complex division of labor which developed out of theIndustrial Revolution has made the exchange of products increasinglyimportant. To-day the typical workman concentrates upon one particularkind of work, and is content to exchange a share of his earnings forthe numerous goods and services which he cannot supply for himself. Exchange thus increases the total output of the community or nation bypermitting individuals to specialize in those commodities which theycan produce most effectively. 75. RELATION OF TRANSPORTATION AND COMMUNICATION TO EXCHANGE. --Exchange is largely dependent upon transportation and communication. In the United States, for example, not only do the individuals of aparticular community specialize in various types of work, but thedifferent sections of the country are devoted to the production ofthose commodities for which they are best suited. Thus it is largelytrue that New England is best suited to manufacturing, the South tothe growing of cotton, and certain parts of the West to the productionof lumber and foodstuffs. The suitability of a region to a particularclass of products is due, partly to location, partly to the nature ofthe soil and the climate, and partly to the inclination and trainingof the people. But whatever its causes, this territorial division oflabor could not be carried out without an efficient system oftransportation and communication. Communication by mail, telephone, and telegraph is necessary to allow producers and consumers indifferent parts of the country to keep in touch with one another. Transportation by land and water is necessary if the surplus productsof one section are to be exchanged for the surplus products of othersections. 76. TYPES OF COÖRDINATORS. --Those who perform the work of coördinationin industry are commonly referred to indiscriminately as business men, middlemen, or entrepreneurs. [Footnote: the term "entrepreneur" isawkward and little known, but no more satisfactory term is available. ]The meaning of these three terms is distinguished with difficulty, butto avoid confusion later on the essential character of each should bepointed out here. The term business man is very wide, and is commonlyinclusive of all who actively engage in any sort of business. Theprimary function of the middleman is to act as a connecting linkbetween various industrial enterprises. The entrepreneur, on the otherhand, is primarily an individual who coördinates land, labor, andcapital with the intention of initiating and conducting a businessenterprise. In so far as he acts as a connecting link between otherindustrial agents, the entrepreneur is a middleman, but the middlemanis usually thought of as an individual who connects up existingbusinesses, rather than initiating a new enterprise. To the functionsof the entrepreneur we shall return in the next chapter; here it isthe middleman proper who is our chief concern. 77. IMPORTANCE OF THE MIDDLEMAN. --The chief stages of shoe manufacturemay serve to illustrate the great importance of the middleman inexchange. The middleman, anticipating a demand for beef and hides, connects the cattle grower with the live-stock market. Still later itis a middleman who offers raw hides to the tanner, and who sees thatthe wholesale leather merchant comes into business contact with thetanner. The banker or broker who connects the entrepreneur with themoney with which to set up a shoe factory may be called a middleman, as may the individual who aids the entrepreneur in getting therequired amounts of land and labor with which to start manufacturing. When, under the direction of the entrepreneur, the shoe has beenmanufactured, it is often a middleman who connects the shoe wholesalerwith the finished product. The jobber who buys large quantities ofshoes from the wholesaler and sells them to the retailer in small lotsis a middleman. The advertising man whose description and pictorialrepresentation of the shoe causes the consumer to buy it of theretailer is also a middleman. 78. NOT ALL MIDDLEMEN ARE SOCIALLY NECESSARY. --By coördinating thework of these various individuals, many of whom are themselvesmiddlemen, the middlemen whom we have been describing allow thecommunity to secure the full benefit of the division of labor and ofexchange. Where there exist just enough middlemen to coördinate withmaximum efficiency the various industrial agents of a community, thecommunity gains. When, on the other hand, there are more middlemen atwork than are really needed to perform the work of industrialcoördination, the community loses. This loss is a double one: first, the working energy of the superfluous middlemen is wasted, or at leastis applied uneconomically; second, middlemen are paid, directly orindirectly, out of the product which they handle, so that the handlingof a commodity by an unnecessarily large number of middlemen meanshigher prices for the ultimate consumers of that commodity. [Footnote:The existence of superfluous middlemen constitutes a grave problem, towhich more and more attention is being given. Various aspects of thisproblem are discussed in Chapters XII and XXV. ] 79. BARTER. --We have seen _what_ the middleman does; it remains topoint out _how, _ or by means of what mechanism, he performs hisfunctions. When savages, and civilized peoples living under primitiveconditions, wish to exchange their surplus goods, they generallyresort to barter, _i. E. , _ they exchange one commodity directly foranother. Where the division of labor has been so little developed thatthe goods to be exchanged are relatively few, this may work very well, but in modern industry barter would be inexpedient, if not impossible. The farmer who had a surplus of cattle and desired a piano might havegreat difficulty in finding a man who had a surplus piano and who alsodesired cattle. Even though the farmer liked the piano in question, and even though the owner of the piano were pleased with the farmer'scattle, it might be impossible to measure the value of the piano inunits of cattle. 80. NATURE AND FUNCTION OF MONEY. --To facilitate exchange civilizedpeoples make an extensive use of money. Money may be defined asanything that passes freely from hand to hand as a medium ofexchange. [Footnote: The terms "money" and "capital" are often usedinterchangeably. Strictly speaking, however, money is a form ofcapital. Moreover, it is only _one_ form of capital] In modern timesgold, silver, nickel, and copper coins have been the most familiarforms, though paper currency is also an important form of money. Thereis nothing mysterious about money: it is simply a means offacilitating exchange by saving time and by guaranteeing accuracy inmeasuring the relative values of commodities. Let us see how money actually aids in the exchange, say, of cattle andpianos. The farmer disposes of his cattle to a middleman, receiving inreturn money, the authenticity of which is guaranteed by thegovernment's stamp upon its face. There is no difficulty in makingchange, for money can be so minutely divided as to measure the valueof an article rather exactly. The farmer does not fear that he couldnot use the money received for the cattle, for money is generallyaccepted in exchange for any commodity. The farmer now offers themoney to the piano-owner, who is probably a middleman. Again the factthat money is finely divisible allows an accurate money measure of thevalue of the piano. The owner of the piano, if he is satisfied withthe amount of money offered, does not hesitate to accept the farmer'smoney, since he, too, realizes that he can use the money to purchasethe things that he in turn desires. 81. VALUE AND PRICE. --We have used the term "value" several times; aspart of our preparation for the study of the great problem ofindustrial reform, we must understand precisely what is meant by theterm. Suppose, for the sake of clearness, that we speak of a market as adefinite place where goods are bought and sold. Individuals take orsend their surplus products to the market for sale; individualsdesiring to buy commodities likewise resort to the market. In themarket commodities are said to have value, that is to say, they havepower in exchange. The power of a commodity in exchange is measured inmoney, and the amount of money for which a commodity will exchange iscalled its price. Price is thus a measure, in terms of money, of thevalue of a commodity. The value of a commodity in the market is dependent, partly upon itsutility, or want-satisfying power; and partly upon its scarcity. Inother words, the value of a commodity depends partly upon theintensity with which it is desired by persons able and willing topurchase it, and partly upon its available supply. Price is set as theresult of the interaction of the forces of supply and demand, thisinteraction commonly taking the form of a bargaining process betweenprospective sellers and prospective buyers. QUESTIONS ON THE TEXT 1. Explain clearly the relation between the division of labor andexchange. 2. To what extent is exchange dependent upon transportation andcommunication? 3. Name three types of coördinators, and distinguish between them. 4. Illustrate the functions of the middleman with reference to theshoe industry. 5. Where there exist in a community more middlemen than are reallyneeded, what double loss results? 6. What is barter? 7. Why is barter not extensively used in modern industry? 8. Define money. 9. What is the primary function of money? 10. Give an illustration of the service performed by money. 11. Define value. Distinguish between value and price. 12. Upon what two factors is value dependent? 13. How is price set or determined? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter viii. Or all of the following: 2. Adams, _Description of Industry_, chapter viii. 3. Carver, _Elementary Economics_, chapters xix, xx, xxi, xxii, andxxiv. 4. Hayward, _Money, What It Is and How to Use It_, chapter viii. 5. Smith, _Wealth of Nations_, Book 1, chapters iii and iv. QUESTIONS ON THE REQUIRED READINGS 1. Name some commodities which at one time or another have been usedas money. (Carver, pages 215-216. ) 2. Why were precious metals first coined? (Smith, chapter iv. ) 3. What is meant by the phrase "Time is money"? (Carver, page 183. ) 4. What is the function of the bank check? (Hayward, pages 58-60. ) 5. Explain the meaning of scarcity. (Carver, page 203. ) 6. What are the characteristics of a modern market? (Adams, pages 139-148. ) 7. What is meant by the "higgling of the market"? (Adams, page 139. ) 8. What is the "first law of the market"? (Carver, page 201. ) 9. What are the four industrial agencies on which the organization andpractice of the modern market depend? (Adams, pages 148-152. ) 10. What is meant by the "widening of the market"? (Carver, page 171. ) 11. Explain the statement that "the division of labor is limited bythe extent of the market. " (Smith, chapter iii. ) TOPICS FOR INVESTIGATION AND REPORT I 1. In the production of what commodities do the people of your sectiontend to specialize? To what extent is this specialization due to thenature of the soil and climate? To geographical location? To thetraining of the people? 2. What becomes of the surplus products of your section? Trace theseproducts as nearly as possible to the ultimate consumer. 3. List the articles of food which appear on your dinner table andattempt to discover the source of each. 4. To what extent does the exchange of products in your section takeplace by means of canals, inland waterways, ocean-going vessels, motortruck, horse teams, railroads? 5. To what extent are the telephone and telegraph used to facilitateexchange in your section? 6. Visit a near-by market and study the operations there, withreference to the facts discussed in this chapter. 7. List and classify the middlemen of your community. II 8. Internal trade and transportation in the United States a centuryago. (Bogart and Thompson, _Readings in the Economic History of theUnited States_, pages 240-251. ) 9. Transportation and communication in the United States since 1860. (Bogart, _Economic History of the United States_, chapters xxiv andxxv. ) 10. Early forms of money. (Bullock, _Selected Readings in Economics_, pages 387-399. ) 11. Forms of money at the present time. (Adams, _Description ofIndustry_, chapter x. ) 12. Why coinage is necessary. (Bullock, _Selected Readings inEconomics_, pages 399-400. ) 13. The minting of coins. (_Lessons in Community and National Life_, Series C, pages 177-185. ) 14. Paper money. (_Lessons in Community and National Life_, Series C, pages 185-192. ) 15. Functions of money. (Adams, _Description of Industry_, chapter x. ) 16. The commercial bank. (_Lessons in Community and National Life_, Series A, pages 187-192. ) 17. An English fair in the eighteenth century. (Bullock, _SelectedReadings in Economics_, pages 325-333. ) 18. The development of business organization. (Marshall and Lyon, _OurEconomic Organization_, chapters ix and x. ) CHAPTER IX DISTRIBUTING THE INCOME OF INDUSTRY 82. THE PROBLEM PRIOR TO THE INDUSTRIAL REVOLUTION. --The distributionof industrial income has to do with dividing the products of industry, or the money which represents those products, among the variousindividuals who have aided in their creation. The problem of distribution has existed ever since men first combinedfor purposes of production, but until the period of the IndustrialRevolution the question was relatively unimportant. When, threehundred years ago, most necessities were produced within the familycircle, there was little or no question as to whether or notindividuals outside the family ought to be rewarded for having helpedin the production of those commodities. If one member of the familymade an entire pair of shoes, for example, he was clearly entitled tothose shoes, at least so far as economic principles are concerned. Even where different members of the family combined to produce a pairof shoes or an article of clothing, the small number of personsinvolved, as well as the close identity of interests among the familymembers, kept the problem of distribution from becoming a serious one. 83. EFFECT OF THE INDUSTRIAL REVOLUTION UPON THE PROBLEM. --TheIndustrial Revolution greatly increased the importance of the problemof distribution. Indeed, the growth of the factory system, and thegreater and greater complexity of the division of labor, have made thedistribution of industrial income the basic problem in our economicand social life. Many commodities are still produced by individualsworking independently, or by the joint efforts of the members of afamily, but the vast majority of commodities are now produced by thejoint efforts of numerous individuals who are not bound together byfamily ties. The production of a factory-made shoe, for example, involves large numbers of people, including the cattle grower, thetransportation agent, the tanner, numerous laborers, the individualswho supply land and capital to the entrepreneur, and the entrepreneurwho conducts the enterprise. The welfare of millions of people isinvolved in the distribution of industrial income among individualswho coöperate in such enterprises as this. 84. DIFFICULTY OF THE PROBLEM. --Under modern industrial conditionsmost commodities are produced by the combined efforts of large numbersof people. All these people help along the productive process, thoughin different ways and to a varying degree. Since all help, all areentitled to payment. But this is less simple than it sounds. How shallwe determine how much each one helps, and how shall we decide how mucheach one is to receive? At the outset of the discussion, we can be sure of at least one fact, _i. E. _ that since all the individuals involved in a given enterprisemust be paid out of the value of the finished product, the combinedsums received by them cannot long exceed the total value of thatproduct. Unfortunately, this fact is often overlooked. Many of theindividuals who aid in production often become so intent upon securingtheir share, that they are over-ready to explain their contribution tothe product, but loath to give due credit to those who have coöperatedwith them. It is the belief that some individuals receive too littleof the joint income of industry, while other individuals receive toolarge a share, which has given rise to the charge of injustice in thedistribution of wealth. 85. SIGNIFICANCE OF THE ENTREPRENEUR IN DISTRIBUTION. --For the sake ofclearness, let us continue to illustrate the nature of distribution byreference to the shoe industry, carried on under conditions which arenot unduly complicated. The individual having control of the actual manufacture of the shoesis the entrepreneur. It is he who, in anticipation of a demand forshoes, has initiated the enterprise. Suppose, for the sake ofsimplicity, that the entrepreneur has secured land from the land-owner, capital from the capitalist, and labor from the workmen. Protected in a legitimate enterprise by the government, he has sethimself up as a manufacturer of shoes. Since he is in control of theenterprise, it is he who pays the land-owner, the capitalist, and thelaborers, for their respective contributions toward the finishedshoes. The amounts received by the individuals coöperating with theentrepreneur are not, however, arbitrarily determined. Theentrepreneur must bow to economic law, and give these individuals whatfree competition in industry sets as a proper reward for theirrespective services. Let us examine into this conformity to economiclaw. 86. THE LAND-OWNER RECEIVES RENT. --The land-owner is rewarded becausehe extends the use of land to the entrepreneur. A land-owner could notbe expected to, and will not, allow the entrepreneur free use of thisland. The land-owner must therefore be paid for the use of the land. The entrepreneur, on the other hand, is able and willing to pay forthe use of the land because upon it he expects to build a factory inwhich to manufacture shoes. He therefore pays the land-owner an amountof money called rent. The amount of rent paid for a piece of landdepends partly upon how much the entrepreneur wants the land, andpartly upon the available supply of land of the type wanted. This isequivalent to saying that rent is determined by the interaction of thetwo forces of supply and demand. 87. THE CAPITALIST RECEIVES INTEREST. --Besides land, the entrepreneurneeds machinery, office equipment, raw materials, the services oflaborers, and numerous other aids in production. Let us assume thatthe entrepreneur borrows of a capitalist the money required to procurethese necessities. The entrepreneur can afford to pay interest for theuse of this money, since with the aid of the goods and services whichit will buy, he can produce more shoes than would otherwise bepossible. Not only can he afford to pay interest, but he is obliged topay it, since otherwise he could not secure the required loan. Thoughsome people tend carelessly to overlook this fact, saving andabstinence are necessary to the accumulation of money. The individualwho has money, therefore, cannot be expected to allow the entrepreneurto use it without payment, especially not when, as we have just seen, the entrepreneur can acquire wealth by the use of the goods andservices which that money will buy. The amount of interest which the capitalist receives for the use ofhis money will depend, as will rent, upon the law of supply anddemand. If there is a large amount of funds available for investment, and at the same time few borrowers, then a given capitalist must becontent to accept a relatively low rate of interest, lest his refusalcause the entrepreneur to close a bargain with a competing capitalist. If, on the other hand, available funds are scarce and entrepreneursare greatly in need of money, then capitalists are at an advantage andentrepreneurs must offer relatively high rates of interest. 88. THE LABORERS RECEIVE WAGES. --The payment which the laborersreceive for their part in the production of the shoes is called wages. Since the laborers help in shoe manufacture, the employer can affordto pay them. Not only can he afford to pay them, but he must pay them. Otherwise the laborers would not work for this particularentrepreneur, but, in a freely competitive market, would offer theirservices to a competing employer. Wages, like rent and interest, depend upon the conditions of supplyand demand. If, in comparison with other aids in production, theservices of laborers are wanted badly, and if, at the same time, thereis a scarcity of the desired type of labor, then wages will be high. If, on the other hand, there is an over supply of laborers, and also asmall demand for that type of labor, then wages will tend to be low. 89. THE GOVERNMENT RECEIVES TAXES. --In addition to paying the land-owner, the capitalist, and the laborers for their share in producingthe shoes, the entrepreneur must pay taxes to the government. Thesetaxes may be considered as payment for that maintenance of law andorder without which the economical manufacture of shoes would beimpossible. The share which goes to the government is determined by aunique method: the government does not try to secure as large a shareof the product as possible, but strives, on the contrary, to exact aslittle as possible, and still meet its expenses. The subject oftaxation requires special treatment [Footnote: See Chapter XXXII. ] anddoes not, therefore, call for further mention in this chapter. 90. THE ENTREPRENEUR RECEIVES PROFITS. --That share of the incomederived from the sale of the shoes which goes to the entrepreneur iscalled profits. It is only fair that the entrepreneur receive somereward, for it is he who conceived the idea of shoe manufacture andthen carried out the project. Without his efforts the land-owner, thecapitalist, and the laborers would not have combined in thisenterprise, with the result that there would have been fewer shoes inthe community. Fewer shoes would probably mean more expensive shoes. And not only does the entrepreneur deserve some reward for thus addingto the well-being of the community, but if he did not receive thatreward, he would not go to the trouble of initiating and maintaining ashoe manufacturing establishment. The share going to the entrepreneur is determined less exactly than isthe share of the land-owner, the capitalist, and the laborers. Individing up the income of the business, the shoe manufacturer must, inan important sense, put himself last. Before there are finished shoesto sell, he must pay the land-owner rent, the capitalist interest, andthe laborers wages. Before he is allowed to count out his own share hemust also pay taxes to the government, pay insurance on his plant, andset aside an amount sufficient to keep his buildings and machinery inrepair. He cannot evade the payment of rent, interest, or wages on theplea that these payments will diminish his profits. He has contractedto pay the landlord, the capitalist, and the laborers, and he mustfulfill that contract. If, after paying all of his expenses, there isanything left, the entrepreneur retains it as profits. Sometimes thisshare is very large, sometimes it is so small as to force theentrepreneur out of business. In any case, the chief risks andresponsibilities of the whole enterprise are concentrated upon theentrepreneur, rather than upon the land-owner, the capitalist, or thelaborers. 91. THE DETERMINANTS OF EACH SHARE. --To sum up, the share of the jointindustrial income going respectively to the land-owner, thecapitalist, and the laborers is determined by the interaction of theforces of supply and demand, operating under conditions of freecompetition. The entrepreneur's demand for land, labor, or capitalwill depend upon whether or not he sees an opportunity, under aparticular set of circumstances, to add to his product by theemployment of each or all of these factors. Where the supply oflaborers is large, relatively to demand, the promised product of anyone laborer is likely to be relatively small, and in this case theentrepreneur or employer will be unwilling or even unable to offer aparticular laborer high wages. Under these circumstances thecompetition of the many laborers for the few jobs will accordinglybring about lower wages. Where, on the other hand, the supply oflaborers is small, relatively to demand, the chances that a particularlaborer will be able to add to the product are relatively great, andthe competition of employers for laborers will result in higher wages. The same reasoning is applicable to rent and interest. The automaticoperation of the law of supply and demand, functioning in a freelycompetitive market, determines the shares which go to land, labor, andcapital. The share going to the individual entrepreneur is, as hasalready been pointed out, a residual share, _i. E. _ what is left over. QUESTIONS ON THE TEXT 1. What is meant by the distribution of industrial income? 2. Why was this distribution of relatively small importance prior tothe Industrial Revolution? 3. In what way did the Industrial Revolution accentuate the importanceof the problem of distribution? 4. What are the chief difficulties which confront the student of thisproblem? 5. What belief has given rise to the charge of injustice in thedistribution of wealth? 6. Explain the significance of the entrepreneur in distribution. 7. What is the nature of rent? 8. Why does the capitalist receive interest? 9. Why does the laborer receive wages? 10. What is the government's share in distribution? 11. What is the nature of profits, and how are they determined? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter ix. Or all of the following: 2. Carver, _Elementary Economics_, chapters xxx and xxxi. 3. King, _Wealth and Income of the People of the United States_, chapter vii. 4. Thompson, _Elementary Economics_, chapters xx to xxiv inclusive. QUESTIONS ON THE REQUIRED READINGS 1. What is meant by non-competing groups? (Thompson, page 296. ) 2. What are the chief causes of the difference in wages in differentoccupations? (Carver, page 268. ) 3. Upon what factors does the efficiency of the laborer depend?(Thompson, page 303. ) 4. What is the functional theory of wages? (Carver, pages 261--262. ) 5. Have wages increased or decreased since 1850? (King, page 173. ) 6. What is the relation of risk to interest? (Thompson, pages 351--353. ) 7. What is meant by the term "unearned increment"? (Thompson, pages335--337. ) 8. Define profits. (King, pages 155--156. ) 9. Have profits increased since 1880? (King, page 177. ) 10. Name some of the characteristics of the business man. (Thompson, pages 357--358. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Select for study some common commodity which passes through all ormost of the stages of manufacture in your community, as, for example, a hammer, a shoe, flour or canned goods. Make a list of the variousindividuals who are connected with the production of this commodity. By whom are these various individuals paid? Does it appear to you thattheir services bear a close relation to the sums which they receive?Explain fully. 2. Select for study a plot of land which the owner has leased to atenant in your community. Why is the tenant willing to pay rent forthis plot? Why is he able to pay rent? Do you believe that under theexisting circumstances he would be able to pay an increase of 10% inthe rent? An increase of 50%? Explain. 3. Select for study an enterprise in your community in which theemployer utilizes various groups of workmen. Classify the workmen onthe basis of the amount of wages received. Why does the employer paysome high wages and others low wages? 4. Select for study a successful entrepreneur in your community. Outline, either as the result of hearsay, or personal interviews withhim, the qualities to which he apparently owes his success. 5. Make a study of an enterprise in your community which has eitherrecently failed, or which is not now in a thriving condition. Attemptto discover the reasons for the failure to progress. II 6. The law of variable proportions. (Carver, _Elementary Economics_, chapter xxix. ) 7. The nature of income. (King, _Wealth and Income of the People ofthe United States_, chapter v. ) 8. Relation of public education to income. (Thompson, _ElementaryEconomics_, pages 299-303. ) 9. Reasons for the scarcity of capital. (Carver, _ElementaryEconomics_, chapter xxxvi. ) 10. The productivity of capital. (Taussig, _Principles of Economics_, vol. Ii, chapter xxxviii. ) 11. Historical changes in the rate of interest. (Bullock, _SelectedReadings in Economics_, pages 563-568. ) 12. The rent of land. (Carver, _Elementary Economics_, chapterxxxiii. ) 13. Causes of the scarcity of labor. (Carver, _Elementary Economics_, pages 270-271. ) 14. Historical changes in the rate of wages. (Bullock, _SelectedReadings in Economics_, pages 533-543. ) 15. The nature of profits. (Carver, _Elementary Economics_, chapterxxxvi. ) 16. Relation of profits to risk. (Taussig, _Principles of Economics_, vol. Ii, chapter xlix, section 1. ) 17. Qualities of a successful entrepreneur. (Taussig, _Principles ofEconomics_, vol. Ii, chapter xlix, sections 3 and 4. ) 18. Motives of business activity. (Taussig, _Principles of Economics_, vol. Ii, chapter xlix, section 6. ) 19. The government's share in distribution. (Carver, _ElementaryEconomics_, chapter xxxvii. ) CHAPTER X BASES OF THE CAPITALISTIC SYSTEM 92. THE "CAPITALISTIC SYSTEM. "--Modern industry is sometimes said tobe headless, because the numerous individuals engaged in it are notsystematically controlled or directed by a single agency. It is oftensaid to be planless, since laborers, employers, and other industrialagents concentrate upon their individual desires and needs, ratherthan upon the needs of the community or nation as a whole. And yet there is in modern industry a certain regularity of outline, and a general tendency to follow the economic laws discussed in thepreceding three chapters. This circumstance prevents us fromconcluding that our industrial life is entirely a haphazard affair. Itmay, indeed, be said that we have an industrial system. Because of thegreat importance in it of capital, this system is commonly known asthe "capitalistic system. " The underlying principles of this systemhave already been mentioned or implied; nevertheless it will be to ourinterest in this chapter to develop and organize these principles soas to indicate just how they constitute the bases of capitalism. 93. ATTITUDE OF GOVERNMENT TOWARD INDUSTRY. --"It is the duty of thegovernment, " Gladstone once said, "to make it easy for the people todo right, and difficult for them to do wrong. " According to the theoryof the capitalistic system, that is "right" which renders theindividual and the community stronger, happier, and more prosperous inuseful pursuits, while that is "wrong" which weakens or demoralizesthe citizen and the community. The chief economic function ofgovernment is thus to discourage men from harmful and destructiveacts, and to encourage them in activities which are helpful andproductive. Professor Carver points out that the method by which animals get theirliving is either destructive, deceptive, persuasive, or productive. Any one of these four methods may at least temporarily increase thewell-being of the individual, but only the productive method iscertain to benefit the community as well. A good government willtherefore seek to prevent people from advancing their individualinterests by killing, robbing, or deceiving their fellows. Thissuppression of violence and fraud leaves open to individuals only theproductive method of getting a living, so that they cannot benefitthemselves without at the same time adding to the prosperity of thecommunity. From the standpoint of capitalism, thus, a good governmentmaintains an attitude toward industry which is primarily negative:such a government hampers the economic activities of individuals verylittle or not at all, so long as they do not practice harmful methodsof getting a living. 94. PRIVATE PROPERTY. --Most men are self-centered. In even a highlydeveloped society, men ordinarily will not work consistently except intheir own behalf, or in the behalf of a very few people for whom theycare intensely. This instinct of self-interest is the kernel ofindustrial progress, but it can result in material prosperity onlywhen government suppresses violence and fraud. The lowest savages areundoubtedly self-centered, but so long as they must rely upon bruteforce to retain their possessions, there is little inducement toacquire wealth. It is only when law suppresses robbery and fraud, andotherwise protects the individual in his property rights, that theacquisitive instinct will cause him to exert himself in productiveways. Because it satisfies the individual's desire to secure the goodthings of life, the institution of private property is the greatestknown spur to economic activity, It is only in those countries whereindividuals are protected in their property rights that we find anactive, progressive, and prosperous people. 95. ENFORCEMENT OF CONTRACTS. --We have already seen that among themembers of a modern industrial society there is a high degree ofinterdependence, corresponding, in an important sense, to theinterdependence between the parts of a machine. As we have seen, thetypical individual in industry is a specialist, concentrating upon oneparticular kind of work, and depending upon his fellows to supply himwith goods and services which he cannot supply for himself. Now, sucha condition of interdependence could never have arisen were it not forthe fact that government fosters the spirit of confidence amongindividuals. Many persons can be trusted to fulfill the agreements orcontracts which they make with their fellows, but many cannot. A primefunction of government, therefore, is to enforce contracts enteredinto voluntarily and in legal form. This is clearly essential to ourmaterial prosperity, for if men are to rely upon the word of those whosell them goods or services, or to whom they sell goods or services, all of the individuals concerned must be dependable. 96. COMPETITION. --A good government will shunt men into productiveactivities, and it will insist upon the fulfilment of lawfulcontracts. Subject to these two limitations, individuals arerelatively free to seek their own well-being. But an earmark ofeconomic goods is scarcity, that is, there are at a given time andplace fewer of them than are desired. Men must therefore compete withone another for goods and services. The lower animals compete for foodwith tooth and claw; among civilized men government tries to raisecompetition to an ethical plane by tending to suppress all but theproductive methods of competition. Where competition is so restricted and safeguarded, advocates ofcapitalism assert that the results are overwhelmingly good. Wherethere is free competition, _i. E. _ free competition in productiveenterprise, employers commonly pay their laborers as high a wage asthey feel is justified under the particular circumstances, lest theirworkmen abandon them for rival employers. Under similar conditions, laborers will generally endeavor to render the best possible service, so that the employer will prefer them to other laborers. This assumes, of course, that competition is effective, _i. E. , _ that there isneither an oversupply or an undersupply of either employers oremployees. Where, again, there is free competition in productive enterprise, theprice of commodities produced by a given concern cannot rise too far, for consumers will either buy those commodities of rival producers, orwill use substitutes. If, on the other hand, prices drop so low thatproducers make little or no profits, they will withdraw from business. Free and effective competition thus means rivalry in satisfying wants, that rivalry being engaged in for the sake of private gain. Competition tends to harmonize the interests of the individual withthe interests of the community, by making the success of theindividual depend primarily upon what he accomplishes for his fellows. 97. VALUE UNDER CONDITIONS OF FREE COMPETITION. --In a competitivemarket, as we have seen, value depends upon scarcity and utility. Noone will ordinarily pay for a commodity unless it will satisfy hiswants, i. E. Unless it has utility. But even though a commodity hasutility, no one will ordinarily pay for it unless it is so scarce thathe cannot get as much of it as he wishes without paying for it. Air, for example, has great utility, but it is so abundant that it canordinarily be secured without payment. Hence it has no value. Price, the measure of value in terms of money, will be determined, under conditions of free competition, by the interaction of utilityand scarcity. Diamonds are high in price because they satisfy intensedesires and are scarce; bread is cheap because while possessing greatutility, it is relatively abundant. Skilled labor receives high wagesbecause in addition to its utility it is relatively scarce; unskilledlabor often receives low wages because while possessing utility it isrelatively abundant. This principle is of the very greatestconsequence, and in considering the programs of industrial reform weshall come back to it again. 98. FREEDOM. --A large measure of personal liberty is a characteristicof the capitalistic system, To an increasing extent, government isrestricting economic activity to productive channels, but with thisqualification, the individual is comparatively free to do as he likes. The laborer is free to move about in search of work, free to seek abetter job, free to accept or to reject work offered him. He mayabandon his job when he chooses, and remain idle as long as hechooses, or is able. He is repressed by no paternalistic government, embarrassed by no feudal system. He is part and parcel of thecompetitive system, guiding his own actions and acceptingresponsibility for them. To a large extent, the employer is similarlyfree to hire or discharge men as he sees fit, to initiate a newbusiness, or to withdraw from business altogether. In every case theindividual is free, so far as legal restrictions are concerned, to usehis money as he chooses. Whether it is hoarded, invested, or wasted islargely a matter for him to determine. 99. BENEFITS OF THE CAPITALISTIC SYSTEM. --The material prosperity ofthe modern world has been attained under the capitalistic system ofindustry. The system was not invented, but has developed and spreadfrom small beginnings because the experience of centuries has provedit to be the best known system which is applicable to human industry. The starting point of all material prosperity has been the gradualdevelopment of government which suppresses violence and fraud, whichenforces contracts, and which makes possible the rise of theinstitution of private property. The inception of the IndustrialRevolution, and its spread beyond England to Europe, America, and, later, to Asia, were possible only because these bases of capitalismwere already laid. To a large extent, thus, the steam engine, therailroad, the steamship, the electric light, and countless otherinventions which have helped to revolutionize the world we live in, may be traced directly or indirectly to individual freedom and to theprotection of property rights. In so far as science, art, andliterature depend, to a considerable degree, upon material prosperity, we may go so far as to say that capitalism is the most importantsingle basis of modern civilization. 100. DEFECTS OF THE CAPITALISTIC SYSTEM. --But capitalism is notwithout its defects. The lack of centralized control in industryallows of planless production. [Footnote: During our participation inthe World War, it is largely true that much of the productive energyof the country was organized and directed as a unit. This was atemporary expedient, however, resorted to for the purpose of winningthe war. ] Entrepreneurs frequently produce without adequate knowledgeof demand, and without knowledge of rival production. When business isbooming and profits are high, it often happens that so manyindividuals go into business that eventually there is over-production, i. E. There are more goods at a particular time than can be sold at aprofit. Crises, unemployment, and "hard times" are often the directresult of this over-production. Malnutrition, disease, vice, crime, and pauperism are often its indirect results. In still other ways the capitalistic system allows of an uneconomicalexpenditure of labor and capital. There is no adequate method ofdirecting labor and capital toward the production of durable andhelpful commodities, and away from the production of luxuries and suchharmful commodities as have not been made illegal. Under competitiveconditions, too, a number of shops or stores may exist in a communitythat might easily be served by a single firm. This is wastefulduplication, just as advertising is a waste when it goes beyond thepoint of informing the public as to whereabouts and character ofcommodities. Still another source of waste is traceable to anexcessive number of middlemen, each of whom adds to the price of theproduct as it passes through his hands. 101. THE INEQUALITY OF WEALTH. --In all of the great industrialcountries of the world, including the United States, the existingdistribution of wealth is roughly in the form of a pyramid, i. E. , atthe top or apex of the pyramid there is a relatively small number ofpersons who enjoy large incomes, while at the base there is a largenumber with relatively small incomes. This inequality is explained byProfessor Taussig on two grounds: First, it is likely that someindividuals originally secured an economic advantage over theirfellows because of inborn superiority of some kind. Second, theeconomic advantage thus secured has been maintained from generation togeneration by inheritance. Where, for example, wealth is invested sothat the principal remains intact while a large annual income isthrown off as interest, the heirs may live in affluence, regardless ofability or desert. Thus we have a leisure class emerging as the resultof inborn differences between men, supplemented by the accumulation ofwealth and its transmission by inheritance. 102. THE QUESTION OF INDUSTRIAL REFORM. --It goes without saying thatgreat inequalities in the distribution of wealth are undesirable. Ifany improvement is humanly possible, we ought not to rest content solong as millions of our citizens have too few of the good things oflife, while others have much more than is necessary for comfort andhappiness. The test of an economic system is whether or not itprovides a good world to live in, and so long as large numbers ofindividuals have fewer necessities and comforts than it is possible togive them, our economic system must be considered defective. Thepeople as a group are both the means and the end of progress. Democracy cannot rest upon any other basis than the greatest good tothe greatest number. 103. APPROACHING THE PROBLEM. --In approaching the problem ofindustrial reform it is necessary to cultivate a fair and saneattitude. We must attack all of the problems of American democracy, certainly. But in so far as some of these problems involve theintegrity of the capitalistic system, we should distinguish betweenills which are clearly traceable to that system, and defects whichobviously would exist under any industrial system. Capitalism cannotbe discredited, for example, by pointing out that crime exists in allcapitalistic countries. Though capitalism may accentuate some types ofcrime, our knowledge of human nature leads us to suspect that aconsiderable amount of crime would exist under any known system ofindustry. Again, criticism should be constructive; it is easy to pointout the defects of an institution, but it is quite another thing toprovide a good substitute for that institution. The problem before us is a double one: First, can we remedy thedefects of the capitalistic system? And, if so, by what method shallwe proceed? Second, if the defects of capitalism cannot be remedied, what industrial system shall be substituted for capitalism? It is nota question of whether or not capitalism is faulty, but of whether itis more faulty than the system that would be substituted for it. Thevirtues of capitalism, most authorities believe, clearly outweigh itsdefects, and though some other system may eventually prove to have asgreat virtues with fewer defects, the burden of proof is upon thosewho advocate other systems than capitalism. Until the advantage isclearly shown to be on the side of a rival system, it will be wise toretain capitalism. QUESTIONS ON THE TEXT 1. Is it correct to speak of a "capitalistic system"? 2. What is the chief economic function of government? 3. Name the four methods of getting a living. Which will be encouragedby a good government? 4. To what extent is the attitude of a good government toward industrya negative one? 5. What is the relation of government to the institution of privateproperty? 6. What is the importance of laws requiring the enforcement ofcontracts? 7. Why is there competition? 8. How does competition tend to harmonize the interests of theindividual with those of the community? 9. Why are diamonds high in price? Why is bread low in price? 10. What is the relation of capitalism to economic freedom? 11. What can be said as to the benefits of capitalism? 12. What are the chief defects of capitalism? 13. Outline the existing distribution of wealth. 14. On what two grounds does Professor Taussig account for thissituation? 15. What facts should be borne in mind in attacking the problem ofindustrial reform? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter x. Or all of the following: 2. Ely, _Outlines of Economics_, chapter ii. 3. Fetter, _Modern Economic Problems_, chapter ii. 4. Hobson, _Evolution of Modern Capitalism_, chapter i. 5. Seligman, _Principles of Economics_, chapter ix. QUESTIONS ON THE REQUIRED READINGS 1. Define capitalism. (Hobson, page 1. ) 2. How has the development of mines affected the growth of capitalism?(Hobson, page 6. ) 3. What is the relation of colonization to capitalism? (Hobson, pages10-12. ) 4. What is the relation of capitalism to a large labor supply?(Hobson, pages 13-14. ) 5. Define private property. (Ely, page 21. ) 6. Discuss the theories of private property. (Fetter, pages 18-20. ) 7. What were the earliest forms of private property? (Seligman, page126. ) 8. What was the effect of the domestication of animals upon theinstitution of private property? (Seligman, pages 126-127. ) 9. What are the limitations of private property? (Fetter, pages 20-21. ) 10. What is meant by the term "vested interests"? (Ely, pages 25-26. ) 11. What is "fair" competition? (Ely, pages 29-30. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Suppose an unscrupulous individual fraudulently secured possessionof property belonging to you. What steps would you take to securejustice? 2. What penalties are inflicted in your state for highway robbery, embezzlement, theft, forgery, and similar crimes against property? 3. Suppose that you are a florist and that you have ordered a largequantity of flowers from a greenhouse keeper for your Decoration Daytrade. Assume that you could not sell the flowers at a profit if theyarrived later than Decoration Day. Assume, also, that you have reasonto suspect that the greenhouse keeper will not be prompt in deliveringthe flowers ordered. Draw up a contract (to be signed by him) whichwould protect you against his tendency to carelessness. 4. Select for study an isolated rural district, a small town, or asection of a suburb in which the community secures its supply of agiven commodity from a single shop or store. Compare the price of thecommodity, and its quality, with the price and quality of a similarcommodity in stores located in communities served by several competingstores. What do you conclude as to the value of competition? 5. Make a study of bill-board advertising, listing the number ofadvertisements inviting purchase of competing commodities. Write to abill-board advertising company for advertising rates, and draw yourconclusions as to (_a_) the cost of advertising, and (_b_) the wasteinvolved in advertising competing commodities. Make a similar study of magazine advertising, writing to theadvertising manager of the magazine selected for study, in order tosecure advertising rates. II 6. Relation of good government to economic prosperity. (Carver, _Elementary Economics_, chapter vii. ) 7. Competition. (Seligman, _Principles of Economics_, chapter x. ) 8. Methods of struggling for existence. (Carver, _ElementaryEconomics_, page 40. ) 9. The development of economic freedom. (Seligman, _Principles ofEconomics_, chapter xi. ) 10. Distribution of wealth in the United States. (Taussig, _Principlesof Economics_, vol. Ii, chapter liv; King, _Wealth and Income of thePeople of the United States_, chapter ix. ) 11. Place of machinery in the capitalistic system. (Hobson, _Evolutionof Modern Capitalism_, pages 27-29. ) 12. The impersonality of modern life. (_Lessons in National andCommunity Life_, Series B, pages 97-104. ) 13. The extent of poverty in modern life. (Burch and Patterson, _American Social Problems_, chapter xvi. ) B. PROGRAMS OF INDUSTRIAL REFORM CHAPTER XI SINGLE TAX 104. DEFINITIONS. --The words "single tax" refer to a policy underwhich all public revenue is to be raised by a single tax on landvalue. All other taxes are to be abolished. By land value is meant thevalue of the land itself, irrespective of all improvements, such asditches, drains, and buildings. Everything done on the land toincrease its value would be counted as an improvement, and would thusbe exempt from taxation. This would leave only location value andfertility to be taxed. By location value is meant that value which isdue to the situation of the land. For example, land in a wildernesshas little or no location value, but if, later, schools, stores, railroads, and other elements of community life develop in thatregion, the land may take on great value because of its location inthe community. The fertility value of land is that value which is dueto natural endowment in the way of moisture, climate, and soilelements. 105. HENRY GEORGE AND HIS WORK. --The doctrine of single tax is closelyassociated with the name of Henry George, an American reformer whodied in 1897. His theory was best developed in his book, _Progress andPoverty_, published in 1879. In this book George points out that inspite of the progress of the world, poverty persists. This is duechiefly, he contends, to the fact that land-owners take advantage ofthe scarcity of good land to exact unduly high prices for its use. According to George, this monopoly of the gifts of Nature allowslandowners to profit from the increase in the community'sproductiveness, but keeps down the wages of the landless laborers. "Thus all the advantages gained by the march of progress", Georgewrites, "go to the land-owner, and wages do not increase. " George proposed to use the single tax as an engine of social reform, that is to say, to apply it with the primary view of leveling theinequalities of wealth. Value due to improvements was to be exemptfrom taxation, so that land-owners might not be discouraged frommaking improvements on their land. On the other hand, it was proposedthat the single tax take all of the income due to location andfertility. This, according to George, would "render it impossible forany man to exact from others a price for the privilege of using thosebounties of Nature to which all men have an equal right. " 106. RESULTS CLAIMED FOR THE SINGLE TAX. --George claimed that theapplication of the single tax was highly desirable. If, through themedium of this tax, the government were to take from the land-ownersall the location and fertility value of their land, two great benefitswere to result. First, rich landlords would be deprived of muchunearned wealth. Second, the wealth so secured, called the unearnedincrement, could be used to make life easier for the poor. Ultimately, George went so far as to claim, the single tax would "raise wages, increase the earnings of capital, extirpate pauperism, abolishpoverty, give remunerative employment to whoever wishes it, affordfree scope to human powers, lessen crimes, elevate morals and tasteand intelligence, purify government, and carry civilization to yetnobler heights. " The steps by which George arrived at this gratifyingconclusion are obscure, and practically every modern economist agreesthat too much has been claimed for the theory. Nevertheless, there ismuch to be said on both sides of this interesting question. 107. ARGUMENTS FOR THE SINGLE TAX. --Single taxers claim that it isjust to take from land-owners that land value which is not due totheir individual efforts. Fertility, on the one hand, is dueoriginally to the bounty of Nature, and as such belongs to all menalike, rather than to particular individuals. Location value, on theother hand, is due to community growth, and should therefore be takenfor the benefit of the community at large. A very strong argument in favor of the single tax is that land cannotbe hidden from the tax assessor, as can stocks, bonds, jewels, andother forms of personal property. A single tax on land would, therefore, be relatively easy to apply. A tax on the location and fertility value of land would not discourageindustry. Location value is largely or entirely due to communitygrowth, rather than to the efforts of the individual land-owner. Fertility, of course, is largely a natural endowment, and as suchcannot be destroyed by a tax. The land would continue to have all ofits location value, and probably much of its fertility value, whetheror not the owner were taxed. Another argument is that a single tax on land would eliminate taxes onlive stock, buildings, and all other forms of property except land, and that this would encourage the development of the forms of propertyso exempted. This would stimulate business. It has also been said that the single tax would force into productiveuse land which is now being held for speculative purposes. It isclaimed that many city tracts remain idle because the owners areholding them in the hope of getting a higher price in the future. According to the single taxer, a heavy tax would offset this hope ofgain, and would force speculators either to put the land to aproductive use, or to sell it to someone who would so employ it. A last important argument in favor of the single tax is that it mightforce into productive work certain capable individuals who are nowsupported in idleness by land rents. Professor Carver has pointed outthat if the single tax deprived such persons of their incomes, theywould be forced to go to work, and thus the community would gain by anincrease in the number of its productive workers. 108. ARGUMENTS AGAINST THE SINGLE TAX. --The most important objectionto the single tax is that the confiscation of land, or, what amountsto the same thing, the confiscation of the income which land yields, is unjust. "Pieces of land, " Professor Seager points out, "havechanged hands on the average dozens of times in the United States, andpresent owners have in most cases acquired them not as free gifts ofNature, nor as grants from the government, but by paying for them, just as they have had to pay for other species of property. " Whereindividuals have acquired land in good faith, and under the protectionof a government which guarantees the institution of private property, the confiscation of land value would be demoralizing to the communityand unfair to its land-owning citizens. Another difficulty lies in the ease with which value due to permanentimprovements is confused with value due to location or fertility. Where money has been expended in draining land, removing stones orapplying fertilizer, it is hard to tell, after a few years, what partof the value of the land is due to improvements. The possibility ofthis confusion would cause some land-owners to neglect to improvetheir land, or might even cause them to neglect to take steps toretain the original fertility. Thus the single tax might result in thedeterioration of land values. It is also objected that the single tax would provide an inelastictaxation system. This means that it would tend to bring in an equalamount of revenue each year, whereas the revenue needs of governmentvary from year to year. A good tax system will accommodate itself tothe varying needs of the government, always meeting the expenses ofgovernment, but at the same time taking as little as possible from thepeople. [Footnote: Some opponents of the single tax declare that theheaviest possible tax on land would yield only a fraction of therevenue needed to finance the government. Single taxers, however, maintain that the tax would yield more than enough revenue to meetpublic expenditures. The merits of this argument are uncertain. ] It is doubtful whether the single tax would force into productive useland now being held by speculators. Even though a heavy tax were laidupon such land, it would not be utilized unless there were animmediate use to which it could profitably be put. A last important argument against the single tax is that there is nogood reason for removing the tax burden from all except land-owners. Land is only one form of wealth, and it is unfair not to taxindividuals who hold property in some other form. Some land value isindeed unearned, but there are other forms of unearned wealth, as, forexample, monopoly gains and inherited property. Taxes ought to belevied upon these forms of unearned wealth, as well as upon theunearned income from land. It is desirable, too, to levy at least alight tax upon the propertyless classes, in order to encourage them tofeel an interest in, and a sense of responsibility for, the conduct oftheir government. 109. SERVICE RENDERED BY THE SINGLE TAX AGITATION. --Economists areunanimous in agreeing that the single tax, as expounded by HenryGeorge, is too drastic and special a reform to find wide favor. Nevertheless, the single taxers have performed a valuable service byemphasizing the fact that in many cases the income from land islargely or entirely unearned. It would be manifestly unjust todispossess present-day land-owners who have acquired land in goodfaith; on the other hand, most economists agree that we ought toreform our tax system so as to take for the community a larger shareof the future unearned increment of land values. As Professor Taussighas pointed out, no one has a vested right in the indefinite future. The taking of this future unearned increment, it is hardly necessaryto add, would not constitute a single tax, but rather a heavy landtax. Many other taxes would continue to be levied. [Footnote: Thegeneral problem of taxation is discussed in Chapter XXXIL] QUESTIONS ON THE TEXT 1. Define the single tax. 2. What is location value? 3. Define fertility value. 4. Who was Henry George? 5. What benefits, according to George, were to result from anapplication of the single tax? 6. Give the chief arguments in favor of the single tax. 7. Give the chief objections to the doctrine. 8. What service has been rendered by the single tax agitation? 9. What is the attitude of most economists toward the future unearnedincrement of land? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xi. Or all of the following: 2. Carver, _Elementary Economics_, chapter xlv. 3. George, _Progress and Poverty_, book ix. 4. _International Encyclopedia_, vol. 21, article on "Single Tax. " QUESTIONS ON THE REQUIRED READINGS 1. Who were the Physiocrats? (Carver, page 372. ) 2. What is the "ethical argument" in favor of the single tax?(_International Encyclopedia_, vol. 21, page 136. ) 3. What is the "expediency argument" in favor of the single tax?(_International Encyclopedia_, vol. 21, page 136. ) 4. What is meant by "mining" the soil, and what is the relation ofthis practice to the single tax? (Carver, pages 375-376. ) 5. What, according to George, would be the effect of the single taxupon production? (George, book ix, chapter i. ) 6. What, according to George, would be the effect of the single taxupon the distribution of wealth? (George, book ix, chapter ii. ) 7. What are the present aims of the single tax movement?(_International Encyclopedia_, vol. 21, page 137. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Select for study a plot of farm or garden land in your locality. (a) What is the market value of the land? (b) Is it more or less valuable than similar plots in the sameneighborhood? Why? (c) To what extent is the value of the plot selected for study due tonatural fertility? (d) To what extent is the value due to location? (e) To what extent is the value due to permanent improvements, such asdrains, ditches, hedges, fences, or the use of fertilizer to retain orincrease the natural fertility? (f) If you were the owner of this plot, to what extent, if to any, would your future use of this land be affected by the adoption of thesingle tax program? 2. Select for study a plot of ground in your locality which has beenidle for a number of years. (a) Why has this ground been idle so long? (b) Do you believe that this land is being held for speculativepurposes? (c) If so, suppose that a very heavy tax stimulated the owner to putthe land to some use. Do you know of a productive use to which itcould be put? II 3. The life of Henry George. (Consult an encyclopedia. ) 4. The economic background of Henry George's doctrine. (Young, _TheSingle Tax Movement in the United States_, chapter ii. ) 5. Is land-ownership a monopoly? (Seligman, _Principles of Economics_, page 391. ) 6. Tactics of the single tax movement. (Young, _The Single TaxMovement in the United States_, chapter xii. ) 7. Relation of the single tax to socialism. (Young, _The Single TaxMovement in the United States_, pages 307-312. ) CHAPTER XII PROFIT SHARING AND COÖPERATION A. PROFIT SHARING 110. THE NATURE OF PROFIT SHARING. --The essence of profit sharing isthat the workmen in a given enterprise receive, in addition to theirregular wages, a share in the profits which would ordinarily goentirely to the entrepreneur. The share going to the employees varieswith the establishment, but generally from one quarter to threequarters of the profits are divided among them. Distribution is by various methods. The workmen may receive theirshare in cash at the end of the year. Sometimes the money is placed ina provident fund for the workmen as a body; in other cases it isdeposited in savings banks to the account of the individual workmen. In still other cases the workman's share is invested in the businessfor him, the workman thereafter receiving dividends on this investedcapital. In every case, however, the division of profits among the individuallaborers is on the basis of the wages received, that is to say, thehigher the regular wage received by a workman, the larger will be hisshare of the profits set aside for distribution. Generally, too, onlyworkmen who are steadily employed are allowed to share in thedistribution of profits. 111. LIMITS OF PROFIT SHARING. --Profit sharing was once considered aremedy for many of our industrial troubles, but it is now generallyconceded that the plan is decidedly limited in scope. Profit sharingincreases the income of the workmen involved, but for this very reasonit is often bitterly opposed by the trade unions. The unions fear, ofcourse, that the plan will make the workmen interested chiefly in theemployees of their particular establishment, rather than in theworkmen in the trade as a whole. The trade unions also maintain thatprofit sharing is often administered in a patronizing manner, which isoffensive to the self-respect of the workmen. To a large extent, the spread of profit sharing depends upon thedevelopment of altruism among employers. But unfortunately altruisticemployers are rare, and the majority of entrepreneurs will not adoptthe profit-sharing plan unless it promises to result in some distinctadvantage to themselves. This attitude explains, in part, the failureof many profit-sharing experiments. Employers have sometimes tried outprofit sharing in the hope that it would prevent strikes and otherlabor troubles. In some cases this expectation has been realized; inmany other cases serious labor troubles have continued. Thiscontinuance of labor troubles has rendered profit sharing lessattractive to certain types of employers. In certain cases employers have experimented with profit sharing inthe hope that it would stimulate efficiency and economy on the part ofthe workmen. Sometimes the immediate effect of the adoption of theplan has been to make the workmen more efficient and more interestedin their tasks, but after the novelty of the scheme has worn off theyhave generally fallen back into their former pace. In justice to theworkmen, it should be noted here that in most enterprises theconditions of the market and the employer's managerial ability havemore influence upon profits than have the personal efforts ofindividual workmen. Where workmen realize this, they tend to losefaith in their ability to influence the share accruing to them underthe profit-sharing plan. A last important reason why profit sharing is limited in scope is thatin many hazardous enterprises, such as mining, agriculture, fishing, or building construction, the refusal and inability of the workmen toshare in possible losses prevent the adoption of the plan. A miningcorporation, for example, may make large profits one year, and loseheavily the second year. Profit sharing is here inadvisable, if notimpossible. The distribution among the workmen of a large share of theprofits accruing at the end of the first year might so deplete thefinancial reserves of the entrepreneur that he would be unable to meetthe losses of the second year. B. COÖPERATION 112. RELATION OF PROFIT SHARING TO COÖPERATION. --Profit sharingpermits the workmen to secure more than a regular wage from a givenenterprise, without, however, giving them any control over themanagement of the business. Coöperation goes a step farther, andattempts to dispense with either a number of middlemen or with themanaging employer, or with both middlemen and employer. In the case ofa profit-sharing scheme in which the share of the profits accruing tothe workmen is invested in the business for them, ultimate control ofthe enterprise may come into the hands of the workmen through profitsharing. In such a case the plant might be conducted coöperatively. Inpractically every instance, however, coöperation does not grow out ofprofit sharing, but arises independently. 113. ESSENCE OF COÖPERATION. --The essence of coöperation is that agroup of individuals undertake to perform for themselves thosefunctions which are commonly carried on by the business man. Coöperatives are often workmen, though not necessarily so. Under the coöperative plan, all of the profits of the enterprise aredivided among the coöperators; on the other hand, the risks of thebusiness must also be borne by them. Management of the enterprise isconducted partly by officers or committees serving without pay, andpartly by paid agents. The general policies of the business aresettled by the coöperators acting as a body. Coöperation seeks to exchange the centralized control of the businessman for the diffuse control of a group of coöperators. Thisarrangement, its advocates hope, will permit wealth and power to bedistributed among more and more people, and especially among thoseclasses that possess relatively little property. Let us inquirebriefly into the four types of coöperation. 114. CONSUMERS' COÖPERATION. --Consumers' coöperation, also known asdistributive coöperation or coöperation in retail trade, is the mostcommon form of coöperation. It is also probably the most successfulform. In this form of coöperation, a number of individuals contribute theirsavings to a common fund, buy certain desired commodities at wholesaleprices, and distribute these among themselves. Generally, thecoöperative store sells to its members at the regular retail price, but at stated intervals throughout the year the profits of thebusiness are distributed among the coöperatives in proportion to theamount of their individual purchases. Thus the difference between thewholesale and the retail price--minus the expense of conducting thestore--goes to the coöperators, instead of to a store keeper or othermiddleman. One of the best examples of consumers' coöperation is the RochdaleSociety of Equitable Pioneers, established in England in 1844. Thistype of coöperation has also been remarkably successful in Germany, Belgium, and other continental countries. The idea was taken up in theUnited States about the middle of the nineteenth century, and at thepresent time there are in this country about 2000 coöperative stores, many of them doing a thriving business. These stores are locatedchiefly in New England, the North Central States, and the West, fewbeing found in the South. 115. COÖPERATION IN CREDIT. --Credit coöperation may take any one of anumber of forms. In one of the best known forms, a group of personsform a credit society by contributing a proportion of their personalsavings to a common fund. On the strength of this capital, and oftheir own individual liability, they borrow more capital. The totalamounts thus got together are then loaned to the members of thesociety at a specified rate of interest. This rate of interest ishigher than that at which the group had borrowed money from outsidesources; nevertheless, it is lower than the rate members would have topay if they individually sought loans at a bank. This is the aim ofcoöperation in credit: to enable persons of small means to secureloans without paying the high rates which as individuals they wouldordinarily have to meet, if, indeed, they as individuals could secureloans under any conditions. Credit coöperation has been most successful in Germany, particularlyamong artisans and small farmers. It has also attained considerablesuccess among the small tradesmen and artisans of Italy. In the UnitedStates coöperation in credit is less highly developed, but recentlyits influence has been slowly increasing. In many cases it suppliesthe principle underlying building and loan associations in thiscountry. 116. COÖPERATION IN MARKETING. --The coöperative principle has alsobeen applied to the marketing of agricultural products. In Denmark, for example, it has been found that farmers can market their dairyproducts coöperatively, and thus save for themselves much of theprofit that would otherwise go to commission agents and othermiddlemen. A similar saving has been effected in Holland, Belgium, and, to some extent, in France. Of recent years, coöperation inmarketing has become important in the United States, findingparticular favor among the farmers of the Middle and Far West. At thepresent time there are in this country more than two thousandcoöperative cheese factories, and more than three thousand coöperativecreameries. There are also more than a thousand societies for thecoöperative marketing of fruit, as well as numerous live-stock sellingagencies. 117. COÖPERATION IN PRODUCTION. --The three forms of coöperation whichwe have been considering seek to eliminate unnecessary middlemen fromindustry. In producers' coöperation, on the other hand, the attempt ismade to get rid of the entrepreneur, or managing employer. A group ofworkmen get together, subscribe or borrow the required capital, purchase tools, materials, and plant, and set up as producers. Theyseek markets for their product, direct the enterprise either as agroup or through salaried agents, share the profits among themselves, and accept the risks of the enterprise. Coöperation in production has been tried repeatedly in the variouscountries of Europe, but without success. True producers' coöperativeassociations have also met with almost universal failure in the UnitedStates, though experiments have been made in a variety of industries, and in nearly every part of the country. Formerly the MinneapolisCoöpers were a coöperative group which seemed destined to attain aconsiderable success in production, but this group has now abandonedthe coöperative principle. The coöperative marketing of fruit, cheese, and other agricultural products is, of course, not true producers'coöperation, but rather the coöperative marketing of commoditiesproduced by individual enterprisers. 118. BACKWARDNESS OF COÖPERATION IN THE UNITED STATES. --In all formsof coöperation, progress has been much slower in this country than inEurope. There are several reasons for this. For one thing, Americanworkmen move about to a greater extent than do European workmen, whereas coöperation succeeds best where the coöperators have a fixedresidence and develop a strong sense of group solidarity. The factthat our population is made up of diverse racial types likewise checksthe growth of the feeling of solidarity. An important reason for the backwardness of the coöperative movementin this country is that American workmen "make, rather than savemoney, " whereas coöperation requires thrift, and a willingness topractice small economies. Again, the efficiency and progressiveness ofour industrial system renders coöperative ventures less necessary inthis country than in some parts of Europe. It is particularly truethat retail stores in the United States are more efficient thansimilar shops in England and on the Continent. Altogether, the most successful coöperators in this country are notnative-born Americans, but groups of Finns, Russians, Slovaks, andother peoples of immediately foreign derivation. It is among thesegroups that the thrift and group solidarity demanded by coöperationare best found. 119. LIMITS OF COÖPERATION. --Consumers' coöperation, coöperation incredit, and coöperation in marketing all seek to improve thecapitalistic system by eliminating some of the unnecessary middlemenfrom our industrial life. In so far as this is true, these forms ofcoöperation are desirable developments, and deserve to succeed. Thoughthe movement is limited by the considerations set forth in thepreceding section, it is to be hoped that these three forms ofcoöperation will in the future show a considerable development in thiscountry. Producers' coöperation is a different affair. Rather than attemptingto decrease the number of unnecessary middlemen, it attempts tosupersede the entrepreneur or managing employer where he is mostneeded. For this reason producers' coöperation will probably continuea failure. To run a modern business of any size at all requires adegree of intelligence, imagination, judgment, courage, andadministrative ability which is altogether too rare to be found amongcasual groups of laborers. Varied experience, high ability, thedetermination to accept the risks of the enterprise, and a consistentsingleness of purpose are necessary in modern production. Even thoughcoöperators are able to secure an amount of capital sufficient toinitiate production, they rarely have the requisite ability orexperience; too often they object to accepting the risks of theenterprise; practically never can they administer the business withthat unity of control which characterizes the most successful businessenterprises. 120. BENEFITS OF COÖPERATION. --While no longer considered a far-reaching industrial reform, the coöperative movement brings with itmany benefits. Coöperation in retail trade, credit, and marketing cutsdown the waste between consumer and producer, and thus helpssubstantially to reduce the cost of living. Coöperation in production, though it fails to reach its chief objective, has the virtue ofdemonstrating to groups of workmen that the entrepreneur is of farmore value in our industrial life than they might otherwise haverealized. Aside from these advantages, coöperation in any form is animportant educative force. It fosters the spirit of solidarity andmutual helpfulness among members of a group or community. It teachesthrift. It trains the coöperating individuals to exercise foresightand self-control. Altogether the training which it affords isproductive of good citizenship. QUESTIONS ON THE TEXT 1. Explain clearly the nature of profit sharing. 2. What is the attitude of the trade unions toward profit sharing? 3. What is the attitude of the employer toward profit sharing? 4. Does profit sharing result in increased efficiency on the part ofthe workmen? Explain. 5. What is the relation of profit sharing to coöperation? 6. What are the essential features of coöperation? 7. Explain the principle involved in consumers' coöperation. 8. Where has this form of coöperation been most successful? 9. What are the essential features of credit coöperation? 10. Where is credit coöperation most successful? 11. What is the aim of coöperation in marketing? 12. In what way does producers' coöperation differ from the otherforms of coöperation? 13. To what extent is producers' coöperation a success? 14. Why is coöperation backward in this country? 15. Outline the chief benefits of coöperation. REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xii. Or all of the following: 2. Fay, _Coöperation at Home and Abroad_, part iv, chapter v. 3. Harris, _Coöperation, the Hope of the Consumer_, chapter vi. 4. _International Encyclopedia_, vol. 19, article on "Profit Sharing"and vol. 6, article on "Coöperation. " 5. Taussig, _Principles of Economics_, vol. Ii, chapter lxix. QUESTIONS ON THE REQUIRED READINGS 1. What is the principle upon which profit sharing is based?(_International Encyclopedia_, vol. 19, page 244. ) 2. Discuss the origin of profit sharing in the United States. (_International Encyclopedia, vol. 19, page 244. ) 3. Give some examples of profit sharing in this country. (_International Encyclopedia_, vol. 19, pages 244-245. ) 4. Describe the earlier forms of coöperation in this country. (_International Encyclopedia_, vol. 6, page 44. ) 5. For what purpose was the "Rochdale plan" originated? (Harris, page88. ) 6. Discuss voting rights under the Rochdale plan. (Harris, pages 90-91. ) 7. Describe the store service under the Rochdale plan. (Harris, pages93-94. ) 8. How does the Rochdale plan promote thrift? (Taussig, pages 348-349. ) 9. Why has coöperation succeeded in Great Britain? (Taussig, page350. ) 10. What is the Schulze-Delitzsch plan? (Taussig, pages 352-353. ) 11. What is the Raiffeisen plan? (Taussig, page 354. ) 12. Among what classes of the population is coöperation of greatestimportance? (Taussig, pages 347-349. ) 13. How does coöperation teach self-government? (Fay, pages 324-325. ) 14. How has coöperation encouraged thrift? (Fay, page 329. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a study of a profit-sharing plan in your locality. (Write tothe Bureau of Labor Statistics at your State Capitol, asking for thenames and addresses of employers in your locality who haveexperimented with profit sharing. ) 2. Interview, or write to, an employer, explaining the essence ofprofit sharing, and asking his opinion as to its practicability in hisbusiness. 3. Interview, or write to, the officials of a trade union, regardingtheir attitude toward profit sharing. 4. Write to the Coöperative League of America, 2 West 13th Street, NewYork City, asking for free literature on coöperation in your section. If any of the groups of coöperators in your section are found to beclose at hand, make a study of a typical coöperative group. 5. Draw up a plan for a coöperative buying club, and discuss with yourfellow students the chances for its success. (Consult Harris, _Coöperation, the Hope of the Consumer_, chapter xiv. ) 6. Draw up a plan for the coöperative marketing of some agriculturalproduct in your section. Send a description of the plan, givingadvantages, etc. , to a farm journal in your section. (Consult Powell, _Coöperation in Agriculture>/i>, chapter iv, and Coulter, _CoöperationAmong Farmers_. ) II 7. Profit sharing as a method of securing industrial peace. (Burritt, and others, _Profit Sharing_, chapter vii. ) 8. Profit sharing as a means of stabilizing labor. (Burritt, andothers, _Profit Sharing, _ chapter vi. ) 9. Relation of coöperation to advertising. (Harris, _Coöperation, theHope of the Consumer, _ chapter xix. ) 10. Credit coöperation in Germany. (Fay, _Coöperation at Home andAbroad, _ part i, chapter ii. ) 11. Coöperation in dairying. (Fay, _Coöperation at Home and Abroad, _part ii, chapter vi. ) 12. Coöperation among New England farmers. (Ford, _Coöperation in NewEngland, _ chapters vi-ix. ) 13. Coöperation among immigrants in New England. (Ford, _Coöperationin New England, _ chapter iii. ) 14. Coöperation in the fruit industries. (Powell, _Coöperation inAgriculture, _ chapter viii. ) 15. The relation of thrift to nation-building. (_Annals, _ vol. Lxxxvii, pages 4-9. ) 16. The relation of coöperation to socialism. (Fay, _Coöperation atHome and Abroad, _ pages 350-355; Sonnichsen, _Consumers' Coöperation, _part ii, chapter ii. ) CHAPTER XIII THE GENERAL NATURE OF SOCIALISM 121. SOCIALISM IS A VAGUE TERM. --It is often said that the term"socialism" is so vague that it is useless to attempt to define it. The word is used to cover all sorts of schemes of industrial andsocial reform. Sometimes a person whose viewpoint concerning politicsor business has become more liberal appears to himself or to others asa socialist. From the standpoint of many individuals, all those whoadvocate the extension of government control are socialists. Stillothers label as socialists all reformers with whose ideas they are notin accord. It very often happens that persons who pass in thecommunity for socialists are not recognized as such by the officialsocialist parties. Indeed, certain official socialist groups go so faras to declare that other official socialist groups are "not reallysocialists, " either in thought or in action. 122. A DEFINITION OF SOCIALISM. --In spite of this confusion it ispossible to formulate a rather precise definition of socialism. Leaving until later the distinction between the chief socialistgroups, we may say that the following definition covers all who arestrictly socialists: Socialism is an economic theory which aims toabolish the capitalistic system, and to substitute for it "a system ofcollective ownership and democratic management of the sociallynecessary means of production and distribution. " In rather more simplelanguage, socialism intends that all income-producing property shallbe owned and directed by the state. The state is to own and operateland, factories, workshops, railroads, and all other means ofproduction. Private property and the competitive system are to beabolished. [Footnote: Socialism does not seek to abolish the privateownership of food, clothing, and other forms of consumers' goods, yetboth socialists and non-socialists accept the unqualified statementthat "socialism seeks to abolish private property. " because it is theprivate ownership of producers' goods rather than of consumers' goods, which constitutes a cornerstone of the capitalistic system. ] Allbusiness is to be conducted by the government, and all persons are tobe employees of the government. The distribution of wealth is to bedirected by the government. 123. RELATION OF SOCIALISM TO OTHER RADICAL THEORIES. --The terms"communism" and "socialism" call for careful distinction. What is nowknown as socialism was formerly known as communism. For example, KarlMarx, the founder of modern socialism, called himself a communist. Hisfollowers later abandoned the name, and began calling themselvessocialists. Still later, during the World War, a group of Russiansocialists, popularly known as the bolshevists, revived the termcommunist in the sense used by Marx. Strictly speaking, however, communism is generally thought of to-day as a type of small communityorganization in which all wealth, including both the instruments ofproduction and consumers' goods, is owned by the community. Socialism, on the other hand, proposes that the state own and operate only theinstruments of production, leaving food, clothing, and otherconsumers' goods to be owned and enjoyed by individuals. Socialism is often thought of in connection with the doctrine ofanarchy. Anarchism and socialism are alike in that both object to oneman having authority over another. Anarchism agrees with socialismthat capitalism is bad because it gives the employer power over thelaborer. But at this point the two theories begin sharply to diverge. Socialism desires to abolish private property and to concentrate allauthority in the hands of the state. The anarchist maintains that thisis simply a transference of authority, and declares that authority inany form is an evil. Thus where socialism seeks to enlarge the powersof the state, anarchism objects to the existence of any governmentalauthority whatsoever. In addition to communism and anarchism, there are a number ofinteresting theories that are more or less closely associated with thesocialist movement. These will not be discussed here, for two reasons:first, an adequate treatment of them would permit the problem ofindustrial reform to take up a disproportionate share of our time;second, many of these theories, while interesting, are relativelyunimportant, from the standpoint of American democracy at least. Wemay, therefore, confine ourselves to socialism proper, as defined inSection 122. 124. KARL MARX AND HIS INFLUENCE. --The germ of socialism can be tracedback as far as Plato, but the modern movement takes its main impetusfrom the teachings of Karl Marx. Karl Marx was a German Jew, who livedbetween 1818 and 1883. Marx early became known for his radical viewson political and economic subjects. In 1848, he published, incollaboration with Frederick Engels, the well-known CommunistManifesto. The Manifesto, which has been called the "birth-cry ofmodern socialism, " gives in concise form the essence of the socialistdoctrine. In 1864 Marx helped organize the "International, " afederation of radical thinkers, with affiliations in the differentcountries of Europe. In 1867 he published the first volume of hisfamous work, _Capital_, which elaborated the views set forth in theManifesto, and which has since been adopted as the "Bible ofSocialism. " Due to the great influence which Marx has exerted uponsocialist doctrine, he may justly be called the founder andinspiration of modern socialism. 125. THE SOCIALIST INDICTMENT. --The claims of socialism, as formulatedby Marx and elaborated by his followers, constitute a seriousindictment of present-day society. Socialists point out, for example, that the capitalistic system has numerous faults. They call attentionto the fact that capitalism involves enormous wastes in materials andmen; they show that luxurious and injurious goods are produced; andthey maintain that in the past natural resources have often beenmonopolized by a few. They believe the system of private property tobe unjust, and declare that free competition involves needlessduplication of effort. At the present time, it is contended, all thegood things of life go to a few, while the masses remain in povertyand misery. Socialists declare that the fruits of capitalism areunemployment, industrial accidents, crime, vice, poverty, disease, andpremature death. These charges are serious, and Chapter XVI will bedevoted to their critical examination. In this chapter we areconcerned chiefly with an exposition of the socialist doctrine. 126. ECONOMIC INTERPRETATION OF HISTORY. --Formerly a great principleof socialism was the claim that all history has been determined byeconomic forces. According to this view, our whole social andpolitical life, including our basic ideas concerning religion, art, science, and government, are only the reflected result of economicforces. History, Marx contended, is the record of how one class hasgained wealth and power at the expense of another class. The presentstate of society, he asserted, is the result of the exploitation ofthe masses by a few. With this principle we need not further concern ourselves. It is anacademic appendage to the socialist doctrine, and at the present timeis not stressed by socialists. The majority of socialists now concedethat while economic forces have been important in history, social, religious, and political forces are also important. In view of thisadmission, the chief importance of the doctrine of the economicinterpretation of history is its theoretical connection with the twogreat cornerstones of socialism: the theory of surplus value, and thetheory of class struggle. 127. THEORY OF SURPLUS VALUE. --Marx claimed that practically allwealth has been created by the laborers alone, and that all personsother than laborers are parasites. To those who have carefully studiedChapter VIII the error of this claim must appear self-evident, nevertheless, this concept of value is the basis of all socialistattacks upon government and industry. Marx developed this theory asfollows: The value of an article is determined solely by the amount of laborexpended upon its production. But although the laborer creates allwealth, the capitalist is enabled, by virtue of his monopolisticcontrol over the instruments of production, to prevent this wealthfrom going entirely to the laborer. [Footnote: By "capitalists"socialism means not only individuals with money to loan, but"employers" in general, whether middlemen, entrepreneurs, or truecapitalists. ] Socialism declares that the capitalist holds thelaborer in virtual slavery, the laborer receiving only enough of thewealth created by him to enable him to keep alive, while the surplusof this wealth goes to the capitalist. The capitalist is thus aparasite who performs no useful task, but robs the laborers of thefruits of their industry. Marx did not regard profits as reward forbusiness enterprise, but called them "plunder. " Capitalism, accordingto this view, is a system of theft, involving "misery, oppression, slavery, degradation, and exploitation. " 128. CLASS STRUGGLE. --Marx declared that the capitalistic system wasdoomed to destruction. He maintained that as time went on, wealthwould tend to concentrate more and more in the hands of the capitalistor employing class. Trusts and monopolies would become more common, and gradually capitalism would become so unwieldy and so unworkable amechanism that it would finally fall to pieces of its own weight. Crises, panics, and trade depressions were supposed to be indicationsof this inevitable disaster. The tendency for wealth to concentrate in the hands of a few was to beaccompanied by the growing poverty of the masses. Marx believed thatthe middle classes would eventually disappear, leaving only thewealthy employers and the miserable laborers. The individualscomprising these two classes would steadily draw apart into two greatarmies which were destined to battle to the death. Socialism deniesthat employers and laborers have anything in common, and insists thatbetween these two groups a struggle must go on until the employingclass is abolished. 129. WHAT IS THE ULTIMATE AIM OF SOCIALISM?--Nothing could here bemore important than to know the ultimate aim of socialism, nevertheless, there is among socialists no agreement as to theframework of the system which they expect to substitute forcapitalism. All socialists desire collective ownership and directionof the instruments of production, but beyond this there is practicallynothing in the way of a constructive socialist program. Generally, itis declared that when capitalism has been abolished, the workingclasses will organize industry on the basis of communal ownership. Inthe socialist commonwealth there is to be no class struggle, for thereason that there are to be no classes. There is to be a justdistribution of wealth, together with an abolition of poverty, unemployment, and all forms of social injustice. But as to how this isto be accomplished we have no proof. The so-called constructiveprogram of socialism is not so much a definite agreement as to aimsand methods, as it is a confused and disordered expression of theattitude of different socialist groups toward capitalism. Indeed, whensocialists are asked to advance a concrete and definitely constructiveprogram, the reply is often made that the advent of socialism is sofar distant that the constructive side of its program is of noimmediate consequence. 130. NEGATIVE CHARACTER OF SOCIALISM. --But although the constructiveprogram of socialism is vague and unreal, its destructive or negativeprogram is definite and very real. Socialism is opposed to governmentas it exists to-day, and to that extent, it disapproves of theConstitution of the United States. The capitalistic system is to bedestroyed. The institution of private property is to be abolished. Free competition and private initiative are to be abolished or greatlyrestricted. All business is to be under the thumb of the government. Personal liberty is to be narrowed down. Some socialists even go sofar as to declare war upon the family and the church, but though anumber of socialist leaders favor the abolition of the institution ofmarriage, and are professed atheists, it should be borne in mind thatthe great majority of socialists are not openly hostile to the homeand the church. Indeed, the average socialist is probably as friendlyto these institutions as is the average non-socialist. 131. SOCIALIST ATTITUTE TOWARD VIOLENCE. --It is important tounderstand the methods of socialism. Throughout the greater part ofhis life, Karl Marx openly advocated violence and revolution as ameans of securing the downfall of capitalism. Socialists, says theCommunist Manifesto, "disdain to conceal their views and aims. Theyopenly declare that their ends can be attained only by the forcibleoverthrow of all existing social conditions. " Toward the end of hislife, Marx changed this view somewhat, and apparently came to believethat the overthrow of the capitalistic system might come gradually andwithout bloodshed. In accordance with this later view, there is to-daya considerable socialist group which disavows violence. Members ofthis group are known as political socialists. On the other hand, many socialists cling to Marx's earlier insistenceupon violence and bloodshed as a means of attaining socialist ends. Members of the latter class are known as militant socialists, asopposed to those who disavow violence and rely chiefly upon politicalweapons. The two best-known groups of militant socialists are theIndustrial Workers of the World and the Russian bolshevists. 132. POLITICAL SOCIALISM. --Many political socialists are personally somild and agreeable that the thought of unlawful action would never beassociated with them. The political socialist relies chiefly upon thegrowing political power of the working class to effect the abolitionof capitalism. This emphasis upon political weapons has beenparticularly noticeable among socialists living in democraticcountries where the franchise is widely extended, and where the willof the people is reflected through the action of their chosenrepresentatives. The political socialist makes a large use ofpropaganda. He tries to stir up the workingman, to create in him afeeling of solidarity with his fellow workmen, and to incite a feelingof antipathy toward, and dislike for, the employing class. Thepolitical socialist emphasizes or exaggerates the undesirable side ofthe laborer's life, and endeavors by promises of an industrialmillennium to rouse him to political action. "Workingmen of the world, unite, you have nothing to lose but your chains, " is the slogan of thepolitical socialist. 133. ALL SOCIALIST TEACHINGS TEND TOWARD VIOLENCE. --Though largenumbers of political socialists are peaceful and responsible citizens, it should be noted that all socialist teachings tend to result inviolence. The insistence of socialism upon the class struggle, thedeliberate encouragement of industrial ill-will and the general policyof obstructing the activities of government, all lead inevitably toviolence. Strikes involving bloodshed have in many instances beentraced to the teachings of political socialism. During the World War, many political socialists in the United States supported our cause, but others of this group opposed the selective draft, attempted todemoralize our military forces, and impeded the conduct of the war bygiving aid and succor to German agents. By a series of slight steps, political socialism, theoretically law-abiding and harmless, may driftinto treasonable and revolutionary acts. The difference betweenpolitical and militant socialism is thus one of degree only. QUESTIONS ON THE TEXT 1. Define socialism. 2. What is the relation between the terms "communism" and"socialism. "? 3. How are anarchism and socialism related? 4. Who was Karl Marx, and what has been his influence upon socialism? 5. Outline the socialist indictment. 6. What is meant by the "economic interpretation of history"? 7. Explain clearly Marx's theory of surplus value. 8. Just what is meant by the class struggle? 9. Discuss the character of the socialist program. 10. Explain the attitude of Marx toward violence. 11. Distinguish between political and militant socialism. 12. Name the two chief groups of militant socialists. 13. In what respect do all socialist teachings tend to result inviolence? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xiii. Or all of the following: 2. _International Encyclopedia_, vol. 21, article on "Socialism. " 3. Le Rossignol, _Orthodox Socialism_, chapter i. 4. Marx and Engels, _The Communist Manifesto_, all. 5. Skelton, _Socialism, a Critical Analysis_, chapter ii. QUESTIONS ON THE REQUIRED READINGS 1. Explain why increasing social discontent among certain groups maybe due to improvement in their social and economic condition. (Skelton, page 17. ) 2. What, according to socialists, has been the effect upon the workersof the introduction of machinery into industry? (Le Rossignol, page9. ) 3. What, according to Marx, has been the effect of the factory systemupon the laborer? (Skelton, pages 33-34. ) 4. What is meant by "wage slavery"? (Skelton, pages 30-32. ) 5. What is meant by the "iron law of wages"? (Le Rossignol, page 9. ) 6. What, according to socialism, has been the effect of capitalismupon the moral tone of the workers? (Skelton, pages 37-40. ) 7. Who are the bourgeoisie? (_Communist Manifesto. _) 8. Who are the proletariat? (_Communist Manifesto. _) 9. What, according to Marx and Engels, are the aims of socialism?(_Communist Manifesto. _) 10. What does Marx mean by "class consciousness"? (_InternationalEncyclopedia, _ vol. 21, page 235. ) 11. What changes would occur in human character, in the opinion of thesocialists, if socialism were to supplant capitalism? (Le Rossignol, page 10. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Ask each of a number of prominent citizens in your community todefine socialism. Compare the definitions secured with that given insection 122. What do you conclude as to the indefiniteness of the term"socialism"? 2. Make a brief study of the social classes in your community. Does itappear that all of the community's citizens may be grouped into eithera wealthy employing class or into an impoverished laboring class?Compare your conclusion with Marx's statement. (Section 128. ) 3. Select for study a shop, factory or mill in your locality. (a) Does it appear that the interests of the laborers and the employersare identical or in opposition? (b) Carefully observe the actual conduct of the business. Does itappear to you that the laborers alone create the product? Give yourreasons. (c) Do the laborers under observation appear to be getting barelyenough wages to enable them to keep alive? Check up your conclusion byvisiting the homes of some of the laborers in question. 4. Write to the Department of Justice, Washington, D. C. , forinformation regarding the activities of American socialists during theWorld War. II 5. Robert Owen and his work. (Consult an encyclopedia. ) 6. Utopian socialism. (Skelton, _Socialism, a Critical Analysis_, chapter iv; Carver, _Elementary Economics_, chapter xliii. ) 7. Examples of Utopian communities in the United States. (Hinds, _American Communities_. See also an encyclopedia under "Communism. ") 8. The nature of anarchism. (Carver, _Elementary Economics_, chapterxlvi. ) 9. The life of Karl Marx. (Consult an encyclopedia. ) 10. The law of capitalistic development. (Skelton, _Socialism, aCritical Analysis_, chapter vii. ) 11. The economic interpretation of history. (Skelton, _Socialism, aCritical Analysis_, chapter v. ) CHAPTER XIV MILITANT SOCIALISM: THE I. W. W. 134. ORIGIN OF THE I. W. W. --The letters I. W. W. Are a convenientabbreviation which is used to designate a group of militant socialistscalling themselves the Industrial Workers of the World. The I. W. W. Resemble a French socialist group known as syndicalists, and on thataccount the I. W. W. Are sometimes called the American syndicalists. Asa matter of fact, the I. W. W. Are a distinct group, and are in no wayaffiliated with the French syndicalists. The I. W. W. Movement can be traced to a miners' strike in Colorado in1903. As the result of the labor unrest which this strike accentuated, a conference of radical labor leaders was called in Chicago in 1904, to discuss the question of forming a socialist organization whichshould advocate methods more drastic than those of politicalsocialism. In the summer of 1905 a second convention was held inChicago, and a constitution was drawn up and subscribed to. Section 1of Article I of this constitution reads: "This Organization shall beknown as the 'Industrial Workers of the World. '" 135. THE I. W. W. AND THE POLITICAL SOCIALISTS: SIMILARITIES. --Like thepolitical socialists, the I. W. W. Go back to Karl Marx for theirbasic teachings. William D. Haywood, one of the I. W. W. Leaders, accepted Marx's theory of surplus value in these terms: "The theory ofsurplus value is the beginning of all socialist knowledge. It showsthe capitalist in his true light, that of an idler and a parasite. Itproves to the workers that capitalists should no longer be permittedto take any of their product. " The I. W. W. Also stress the classstruggle. The preamble to their constitution declares that "theworking class and the employing class have nothing in common, " andasserts that "between these two classes a struggle must go on untilall the workers of the world organize as a class, take possession ofthe earth, and the machinery of production, and abolish the wagesystem. " In these important particulars there is agreement between theI. W. W. And the political socialists. 136. THE I. W. W. AND THE POLITICAL SOCIALISTS: DIFFERENCES. --The chiefdifference between the two groups is one of method. The politicalsocialists prefer political action to violence; the I. W. W. Preferviolence to political action. The I. W. W. Believe that politicalmethods are altogether too slow and unreliable, and accordingly theyhave so far refused to affiliate with any political party. The extremelimits to which the I. W. W. Have gone in the matter of violence havecaused many political socialists to disavow this militant group. Theattempt has even been made to prove that the I. W. W. Are not socialistsat all, though as a matter of fact they are as truly so as is anyother socialist group. 137. I. W. W. METHODS: THE STRIKE. --The I. W. W. Use the strike, not as ameans of securing better working conditions, but as a method offomenting revolution. "Instead of the conservative motto, 'A fairday's wages for a fair day's work, '" declares the preamble to theirconstitution, "we must inscribe on our banner the revolutionarywatchword, 'Abolition of the wage system. '" In their use of thestrike, the I. W. W. Accordingly oppose conciliation or arbitration ofany kind, and whether or not they gain their point, they go back towork with the intention of striking again at the next opportune time. This policy has been formulated by the I. W. W. In the following words:"Strike; win as much as possible; go back to work; recuperate; strikeagain... Whatever concessions from capitalism the workers secure, sooner or later they will strike again. " The principal strikes initiated in pursuance of this policy occurredat McKees Rocks, Pennsylvania, in 1909; Lawrence, Massachusetts, in1912; Butte, Montana, in 1914; and Bisbee, Arizona, in 1916. Violenceand lawlessness have been prominent features of each of these strikes. 138. I. W. W. METHODS: SABOTAGE. --The word sabotage is of French origin, and is used to describe any sort of deliberate action on the part ofworkmen which results in the destruction of the employer's property. Sabotage is a species of guerrilla warfare, designed to foment theclass struggle. Louis Levine, an I. W. W. Sympathizer, has said that"stirring up strife and accentuating the struggle as much as is in hispower is the duty" of the I. W. W. Some of the commoner forms ofsabotage are injuring delicate machinery, exposing the employer'strade secrets to rival employers, lying to customers about the qualityof the goods, crippling locomotives so that they cannot be operated, slashing the harness of teamsters, shipping perishable goods to thewrong destination, burning forests and wheat fields, sawing lumberinto unusual lengths, and allowing foodstuffs to spoil or deteriorate. 139. I. W. W. METHODS: DESTRUCTION OF LIFE. --In their effort to destroythe existing order of society, some of the I. W. W. Are frankly willingto go as far as assassination. I. W. W. Leaders have advised theirfollowers, both orally and through their writings, to extend the termsabotage to cover the destruction of human life. During the World Warthe I. W. W. Caused a loss of life by putting poison in canned goods, and by causing train wrecks. They have advocated the placing of groundglass in food served in hotels and restaurants. Since the organizationwas formed in 1905, several bomb outrages resulting in loss of lifehave been charged against the I. W. W. , but in justice to this group, itmust be observed that these crimes have never been proved to have beencommitted by authorized I. W. W. Agents. 140. NEGATIVE CHARACTER OF THE I. W. W. --The I. W. W. Resemble thepolitical socialists in their failure to offer a definite system whichcould be substituted for the capitalistic system. Some of the I. W. W. , it is true, have formulated a plan by means of which society issome day to be organized primarily on an industrial basis. Accordingto this program, the workers of a given industry, say the railroadindustry, will be organized into a single union, rather than, as atpresent, into a number of trade unions, such as an engineers' union, as distinct from the firemen's union, the brakemen's union, etc. Therailroad union would in turn become a branch of a great transportationunion, and the transportation union would in turn become a division ofthe "One Big Union, " which is to include all workers in all countriesof the world. If this plan were approved by the entire I. W. W. Organization, itwould mean that the I. W. W. Intended industry to be controlled by asuper-organization of workingmen, all other persons to be excludedfrom any control whatsoever. As a matter of fact, this is the programof only a faction of the I. W. W. The idea of "One Big Union" isopposed by a second group, which insists that after the destruction ofcapitalism, industry must be handed over to the exclusive control ofsmall units of laborers, unaffiliated with, and uncontrolled by, anylarger organization. Beyond the formulation of these two opposingviews, a constructive I. W. W. Program has never been developed. Attention continues to be centered upon the destruction of the presentsystem. 141. UNDEMOCRATIC CHARACTER OF THE I. W. W. --The I. W. W. Oppose ourpresent democracy. They oppose our Constitution and its fundamentalguarantees of personal liberty, individual rights, and privateproperty. They seek revolution, not in order to secure justice for themasses, but in order to place the laboring class in complete power inindustry and government. They announce their intention of continuingthe class struggle "until the working class is able to take possessionand control of the machinery, premises, and materials of productionright from the capitalists' hands, and to use that control todistribute the product of industry _entirely_ among the workers. " 142. LIMITED APPEAL OF THE I. W. W. PROGRAM. --It is a testimonial tothe common sense of American workmen that the I. W. W. Have madelittle headway. Until the Lawrence strike in 1912, the movementcentered in the Far West, and it is even now practically confined tothose parts of the West where industry is less well organized, andwhere family life is less stable. Miners, lumbermen, and railwayconstruction workers are prominent in the movement. In general, the I. W. W. Theory appeals chiefly to the lower strata of unskilled labor, to young and homeless workers, to transients, and to unassimilatedimmigrants. The better trained and the more intelligent Americanworkmen reject the program of the I. W. W. These latter workmenbelieve in bettering their condition through the gradual developmentand enforcement of industrial standards, made possible by lawfulcoöperation with the employer. The truth of this statement is borneout by the fact that whereas the I. W. W. Number scarcely 30, 000, theAmerican Federation of Labor has more than 4, 000, 000 members. Numerically the I. W. W. Are unimportant, and it is chiefly theirviolent and spectacular tactics which attract attention. QUESTIONS ON THE TEXT 1. What do the letters I. W. W. Stand for? 2. How did the I. W. W. Organization come into existence? 3. In what ways are the I. W. W. Like the political socialists? 4. In what way do the I. W. W. Differ from the political socialists? 5. What use do the I. W. W. Make of the strike? 6. Define sabotage, and give some examples. 7. Discuss "destruction of life" as an I. W. W. Aim. 8. Upon what basis do the I. W. W. Expect to reorganize society? 9. What is meant by "One Big Union"? 10. What is the attitude of the I. W. W. Toward democracy? 11. To what classes of the population does the I. W. W. Theory makeits chief appeal? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xiv. Or all of the following: 2. Bloomfield, _Modern Industrial Movements_, pages 40-50 and 78-86. 3. Hoxie, _Trade Unionism in the United States_, chapter vi. 4. _International Encyclopedia_, vol. 12, article on "IndustrialWorkers of the World. " 5. Preamble to the Constitution of the Industrial Workers of theWorld. QUESTIONS ON THE REQUIRED READINGS 1. Name some of the unions represented in the I. W. W. Convention of1905. (_International Encyclopedia, _ page 150. ) 2. What do the I. W. W. Insist must be the outcome of the classstruggle? (Preamble to the constitution. ) 3. What sort of an organization do the I. W. W. Believe to beessential if the condition of the workers is to be improved? (Preambleto the constitution. ) 4. What are the three reasons why the I. W. W. Expect to take overindustry? (Bloomfield, page 80. ) 5. What may be said as to the present attitude of the I. W. W. Towardpolitical parties? (International Encyclopedia, _ page 151. ) 6. What are some of the differences between the I. W. W. And the Frenchsyndicalists? (Bloomfield, pages 49-50. ) 7. What is the origin of the word sabotage? (Bloomfield, page 80. ) 8. To what extent is the I. W. W. Movement supplied with able leaders?(Hoxie, pages 149-150. ) 9. Discuss the membership of the I. W. W. (Hoxie, pages 139-140. ) 10. Explain the attitude of the masses of American workmen toward theI. W. W. (Hoxie, pages 157-161. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Interview, or write to, the officials of a trade union in yourcommunity with reference to the attitude of the trade union toward theI. W. W. (Many trade unions are bitterly opposed to the I. W. W. ; othersare more tolerant of this form of militant socialism. ) 2. Investigate the conditions surrounding any strike which has beeninitiated in your neighborhood by the I. W. W. (Consult the officials ofa local trade union. Consult, also, the files of local newspapers andthe _Readers' Guide to Periodical Literature. _) 3. A number of states have recently passed laws restricting thedestructive tactics of the I. W. W. Ascertain whether or not your statehas passed such laws. (Write to the state library at the statecapitol. ) Also write to the proper authorities in several other states, askingfor a copy of such laws, if any have been passed in those states. II 4. Origin of the I. W. W. (Groat, _Organized Labor in America, _ chapterxxvii. ) 5. The theory of "direct action. " (Bloomfield, _Modern IndustrialMovements_, pages 62-67. ) 6. Conflict of aims and ideals within the I. W. W. Organization. (Hoxie, _Trade Unionism in the United States_, chapter vi. ) 7. Sabotage. (Groat, _Organized Labor in America_, chapter xxviii. ) 8. Theory of the "general strike. " (Brooks, _American Syndicalism: TheI. W. W. _, chapter x. ) 9. Syndicalism. (_International Encyclopedia_, vol. 21, article on"Syndicalism. ") 10. Relation of the I. W. W. Theory to anarchism. (Brooks, _AmericanSyndicalism: The I. W. W. _, chapter xiv. ) CHAPTER XV MILITANT SOCIALISM: THE BOLSHEVISTS 143. SIGNIFICANCE OF BOLSHEVISM. -The term "bolshevist" is used todesignate a group of militant socialists that seized power in Russiain the fall of 1917. Strictly speaking, the bolshevists were purely aRussian group, nevertheless, they are of interest to students ofAmerican democracy. Until the outbreak of the World War socialism wasprimarily a theory, the claims of which could not definitely besettled for the reason that it had never been applied on a largescale. Bolshevism is significant because it is the only instance inthe history of the world where nation-wide socialism has actually beenput into operation. The peculiar conditions surrounding the Russianexperiment may prevent any detailed conclusions as to the availabilityof bolshevist experience for other countries; on the other hand, thegeneral results of that experiment must throw some light upon what wemight expect if a socialist experiment were made in other countries. It is important, therefore, that we inquire into the nature of theRussian socialist state. 144. ORIGIN OF THE BOLSHEVISTS. --There is a popular impression thatsince the word bolshevist means "majority" in the Russian language, the bolshevists represented or constituted a majority of the Russianpeople. This is not true, as the history of the group shows. Theorigin of the bolshevists dates from a convention of the RussianSocial-Democratic party in 1903, at which time a majority(_bolshinstvó_) took an extreme stand upon the policies then beingdiscussed in convention. In the years that followed the bolshevistsbecame known as the radical or extreme wing of the Russian Social-Democratic party, as opposed to the menshevists, or moderate wing. It appears that as early as 1905 the bolshevists planned to securecontrol of the Russian government. The opportunity presented itselfduring the World War, which Russia had entered early in August, 1914. In March, 1917, a non-bolshevist group initiated a revolution, whichoverthrew the government of the Czar and established a provisionalgovernment under the leadership of Alexander Kerensky. This governmentimmediately instituted a number of democratic reforms, including theextension of the suffrage to all men and women who were Russiancitizens. These citizens elected delegates to a constituent assembly, but at this point the bolshevists, seeing that the voters of Russiawere overwhelmingly against bolshevism, attacked the new government. The constituent assembly was forcibly dissolved, its defendersslaughtered, and on November 7, 1917, the bolshevists seized the reinsof government. Thus bolshevism as a government came into being as theresult of suppressing the lawfully expressed will of the Russianpeople. 145. THE BOLSHEVIST CONSTITUTION: LIBERAL ELEMENTS. --On July 10, 1918, the bolshevists adopted a constitution. This remarkable document was astrange compound of liberal and despotic elements. It made a number ofimportant promises to the people of Russia, announcing, for example, that the new government would "put an end to every ill that oppresseshumanity. " In pursuit of this ideal, the church was separated from thestate, and complete freedom of conscience was accorded all citizens ofRussia. Citizens were to enjoy complete freedom of speech and of thepress. For the purpose of "securing freedom of expression to thetoiling masses, " provision was made for the free circulationthroughout the country of newspapers, books, and pamphlets. Full andgeneral education to the poorest peasantry was also promised. Capitalpunishment was declared abolished, and a solemn protest against warand violence of every kind was adopted. 146. THE BOLSHEVIST CONSTITUTION: RESTRICTED SUFFRAGE. --These liberalprovisions were offset, however, by a number of important restrictionsupon the voting rights of the people. Article IV of the bolshevistconstitution declared that the right to vote should not be extended tothe following groups: all persons employing hired laborers for profit, including farmers who have even a single part-time helper; all personsreceiving incomes from interest, rent, or profits; all persons engagedin private trade, even to the smallest shop-keeper; all ministers ofreligion of any kind; all persons engaged in work which was notspecifically defined by the proper authorities as "productive anduseful to society"; members of the old royal family; and individualsformerly employed in the imperial police service. The constitutionfurther provided that representation in the various deliberativeassemblies (called soviets, or councils) should be arranged so thatone urban bolshevist would be equal, in voting strength, to five non-bolshevist peasants. Lastly, the constitution significantly neglectedto provide any machinery whereby the voters, either as individuals orin groups, could make nominations for any governmental office. Thepower of nomination was assumed by various bolshevist officials. 147. THE BOLSHEVIST CONSTITUTION: PROVISION FOR A DESPOTISM. --Thebolshevist constitution frankly provided for a despotism. "For thepurpose of securing the working class in the possession of completepower, " reads the concluding section of chapter two of theconstitution, "and in order to eliminate all possibility of restoringthe power of the exploiters, (the capitalist or employing class), itis decreed that all workers be armed, and that a socialist Red Army beorganized and the propertied class disarmed. " These steps, theconstitution goes on to state, were to be taken for the expresspurpose of introducing nation-wide socialism into Russia. 148. "DICTATORSHIP OF THE PROLETARIAT. "--Shortly after the publicationof the constitution, Lenin and Trotzky, the two bolshevist leaders, established what was called the "dictatorship of the proletariat. " Theword proletariat refers vaguely to the working classes, but thebolshevists interpreted the term to cover only that portion of theworkers which was pledged to the support of socialist doctrine. Leninadmitted that a small number of bolshevized workingmen, theproletariat, was maintaining, by force of arms, a despotic controlover the masses of the people. "Just as 150, 000 lordly landownersunder Czarism dominated the 130, 000, 000 of Russian peasants, " he oncedeclared, "so 200, 000 members of the bolshevist party are imposingtheir will on the masses. " According to these figures, the controllingelement in Russia included less than one sixth of one per cent of thepeople. From the first, the great majority of the peasants stolidly resistedthe socialization of the country, but this did not discourage thebolshevist leaders. "We have never spoken of liberty, " said Leninearly in 1921. "We are exercising the dictatorship of the proletariatin the name of the minority because the peasant class in Russia is notyet with us. We shall continue to exercise it until they submit. Iestimate the dictatorship will last about forty years. " 149. SUPPRESSION OF DEMOCRACY. --The democratic tendencies evidencedunder the Kerensky regime, and apparently encouraged by some of theprovisions of the bolshevist constitution, were quickly checked by thedictatorship. It became the policy of the government to deprive "allindividuals and groups of rights which could be utilized by them tothe detriment of the socialist revolution. " The semblance of arepresentative system was retained, but voting power was sodistributed as to allow an oligarchic group to control thegovernment's policies. This group had the power to disallow electionswhich went against it, as well as the power to force the dismissalfrom local Soviets of anti-bolshevist members. The right to vote couldbe arbitrarily withdrawn by order of the central authorities. Freespeech and the right to enjoy a free press were suppressed. Leninadmitted that bolshevism "does not represent the toiling masses, " anddeclared that "the word democracy cannot be scientifically applied tothe bolshevist party. " Both Lenin and Trotzky declared that they hadno fixed policy except to do whatever at the moment seemed expedient, regardless of previous statements or promises. 150. ABOLITION OF THE CAPITALIST SYSTEM. --Socialism, so long a theory, became a practical concern at the moment that the bolshevists securedcontrol of the government. Private property in land was abolished, thearable land of Russia being apportioned among agriculturists withoutcompensation to the former owners. All mines, forests, and waterwaysof national importance were taken over by the central government, while the smaller woods, rivers, and lakes became the property of thelocal Soviets. Banking establishments were seized and looted bybolshevist forces. Factories, railroads, and other means of productionand transport were taken over. Inheritance was abolished. Privateinitiative in business was forbidden. Members of the capitalist oremploying classes were imprisoned, murdered, or driven from thecountry. In a word, the capitalistic system was destroyed, and theeconomic and political machinery of the country came under the fullcontrol of a small socialist group, maintained in power by armedforce. 151. PARALYSIS OF INDUSTRY UNDER SOCIALISM. --The substitution ofsocialism for capitalism in Russia was followed by disaster. Theworkers were unable to carry on the industries which had been handedover to them. Discouraged by repeated errors in administration, anddemoralized by their sudden rise to power, they neglected their workand pillaged the factories and shops in which they had formerly beenemployed. The elimination of the managing employers resulted in adecrease in output, and to aggravate the situation the laborerscontinued to insist upon a shorter and shorter working day. Indesperation the government attempted to keep the people at their tasksby force. The workers were exploited to a degree previously unknown, even in Russia. They worked longer hours and for less pay thanformerly. In many places they were attached to their tasks likemedieval serfs, and even harnessed to carts like beasts of burden. Thetrade unions were abolished, and the workers were forbidden to strike, on pain of imprisonment or death. Yet despite these measures theoutput of factories, mills, and mines steadily decreased. Industrystagnated, and business fell away. The millions of Russia werestarving in a land of plenty. 152. RETURN TO CAPITALISTIC METHODS. --To save the country fromeconomic ruin, Lenin turned to capitalism. Free initiative and opencompetition in trade were again allowed. The socialization ofrailroads, mills, and natural resources was halted. The arable land, which under socialism had not grown enough food to support even thepeasants living upon it, was again cultivated under the wage system. The capitalists and managing employers who were alive and still inRussia, were gathered together and placed in charge of industry. Thelaborers, who had been promised an eight- or six-hour day and completecontrol of industry, were now forced by the bolshevist government towork long hours under their former employers for practically no pay. By 1919 the essential features of the capitalistic system had beenaccepted by Lenin and Trotzky, the bolshevists continuing in power asa despotic group which maintained authority over the laborers and theemployers by armed force. The theory that all except the laborers areparasites had been exploded. 153. WAS SOCIALISM GIVEN A FAIR TRAIL IN RUSSIA?--To point out that anexperiment has failed is one thing; to prove that it has beenattempted under fair conditions is quite another. We cannot, therefore, condemn the bolshevist experiment without some regard forthe conditions under which it was conducted. Undoubtedly, the bolshevists had to contend against several importantdifficulties. The majority of the Russian people are illiteratepeasants, who had had, at the time of the overthrow of the Czar in1917, little or no training in self-government. In 1917, Russia was, moreover, in a state of political demoralization, the result of threeyears of war, concluded by a military debacle and a disorderly peace. The suddenness with which socialism was introduced was also a factorwhich handicapped the bolshevists. On the other hand, many favorable conditions were present. Withrespect to natural resources, Russia is one of the richest countriesin the world. She has practically everything necessary to a healthyand self-sufficing industrial life. Over this wealth the bolehevistshad full control. Lenin, the bolshevist chief, is conceded to havebeen a remarkable executive, so that the socialist experiment wasconducted by a man not only well versed in Marxian doctrine, butcapable of exercising an intelligent and authoritative control of thegovernment. The bolshevist territory was blockaded by Great Britain, France, and the United States, but trade connections between Russiaand the two last-named countries had been unimportant. Tradeconnections with Germany and Sweden on the west, and China on theeast, were not broken off. It is clear that the socialist experiment in Russia was attended byimportant advantages and disadvantages. Whether or not bolshevism hadan absolutely fair trial is as yet impossible to say. On the otherhand, the disastrous failure of the experiment would seem to indicatethat it could not have met with any great degree of success underfairly favorable conditions. The admissions of the bolshevist leadersthemselves, together with the conclusions of the most impartialinvestigators of the experiment, justify the conclusion that socialismin Russia failed because it was based upon false principles. Thebolshevists have been accused of having instituted a reign of terror, bringing in its train lawlessness, murder, desecration of the church, and the most brutal savagery. Into these charges we cannot go; it isenough that the most reliable evidence goes to show that bolshevism, as a nation-wide application of socialist doctrine, was a failure. 154. FAILURE OF BOLSHEVIST PROPAGANDA BEYOND RUSSIA. --Bolshevism, incommon with other varieties of socialism, sought to break downnational barriers and to establish a dictatorship of the proletariatin all of the countries of the world. Some of the milder socialists inwestern Europe and America disavowed the acts of the Russian group, but the majority of socialists beyond Russia appear to have at leastsecretly sympathized with the bolshevists. Encouraged by thisattitude, Lenin and Trotzky frankly admitted their intention offomenting world-wide revolution. The bolshevist governmentappropriated large sums for propaganda in countries beyond Russia, andsocialist sympathizers everywhere advocated an attempt to overthrow"world capitalism. " In the period of unrest immediately following theWorld War there was some response to bolshevist propaganda in a numberof countries, but sounder opinion prevailed, and in 1920 Leninadmitted that the workingmen of Europe and America had definitelyrejected his program. The one case of nation-wide socialism had provedtoo great a failure not to impress the laboring classes in the moreadvanced countries of the world as a visionary and unworkable scheme. QUESTIONS ON THE TEXT 1. Why is bolshevism of interest to students of American democracy? 2. Explain the origin of the bolshevists. 3. How did the bolshevists come into power? 4. To what extent was the bolshevist constitution liberal? 5. To what extent did it restrict the suffrage? 6. What did the bolshevist constitution say concerning a "red" army? 7. Explain the phrase, "dictatorship of the proletariat. " 8. How did the bolshevists suppress democracy in Russia? 9. Outline the steps by which the bolshevists destroyed capitalism. 10. What were the effects of this destruction? 11. Why did Lenin return to capitalism? 12. Was bolshevism given a fair trial? 13. What was the fate of bolshevist propaganda beyond Russia? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xv. Or all of the following: 2. Bloomfield, _Modern Industrial Movements_, pages 295-302. 3. Bolshevist constitution, reprinted in the above reference, pages243-258; copies may also be secured by writing to _The Nation_, NewYork City. 4. Brasol, _Socialism versus Civilisation_, chapter iii. QUESTIONS ON THE REQUIRED READINGS 1. What occurred in Russia on October 28, 1917? (Brasol, page 113. ) 2. What was the substance of the bolshevist announcement of theoverthrow of the Kerensky government? (Brasol, page 114. ) 3. What was the attitude of the menshevists toward the bolshevistsafter the latter had seized control in Russia? (Brasol, pages 120-122. ) 4. What opinion did the bolshevists express with regard to worldcivilization? (Bolshevist constitution, chapter iii. ) 5. In what body did the constitution vest supreme control over thebolshevist government? (Bolshevist constitution, chapter v. ) 6. What was the food situation in bolshevist Russia? (Brasol, page129. ) 7. Discuss the output of coal and iron under bolshevist rule. (Brasolpages 132-133. ) 8. Describe agricultural conditions under the bolshevists. (Brasol, pages 133-135) 9. Describe the condition of transportation in bolshevist Russia. (Brasol, pages 135-141. ) 10. What were the results of the bolshevist attempt to fix prices bygovernmental decree? (Brasol, pages 154-155. ) 11. What was the attitude of bolshevism toward the peasants?(Bloomfield, page 297. ) 12. What was the relation between bolshevist theory and bolshevistpractice? (Bloomfield, pages 299-300. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make as thorough a study as the time allows of material appearingin newspapers and magazines, between November, 1917, and the presenttime, on the subject of bolshevism. (Consult newspaper files, and alsothe _Readers' Index to Periodical Literature_. ) (a) Classify the material according as it consists of directquotations from bolshevist leaders, or of indirect quotations. (b) Classify the material according as it is favorable to bolshevism, unfavorable, or neutral. (c) Classify the material according as it consists of reports ofpersons who had themselves actually investigated the situation inRussia, or reports based upon hearsay evidence. (d) What conclusions do you draw from this study? II 2. The essential elements of the bolshevist constitution. 3. Bolshevist propaganda in the United States. (_Hearings before asub-committee of the Committee on the Judiciary, U. S. Senate_. Government Printing Office, Washington, D. C. , 1919. ) 4. Attitude of the United States government toward bolshevism. (_Memorandum on certain aspects of the Bolshevist Movement in Russia_, Government Printing Office, Washington, D. C. , 1919. ) 5. Bolshevism and the Russian trade unions. (_Current HistoryMagazine_, published by the New York _Times_, September, 1920. ) 6. The character of Lenin. (Bloomfield, _Modern Industrial Movements_, page's 203-271. ) 7. Return of the bolshevists to capitalism. (Bloomfield, _ModernIndustrial Movements_, pages 291-295. ) 8. Socialist attempts to explain or justify the failure of bolshevism. (Brasol, _Socialism versus Civilisation_, chapter iv. ) CHAPTER XVI THE CASE AGAINST SOCIALISM 155. ADMINISTRATIVE DIFFICULTIES CONFRONTING SOCIALISM. --Undersocialism the work of government would be greatly increased. Thousandsof intricate administrative rules would have to be drawn up for thecontrol and direction of activities now attended to by individualsanimated by personal interest. Now, it is seriously to be questioned whether the most highlycentralized government could effectively administer the innumerableactivities of our complex industrial life. Upon what basis would landbe distributed? How would individuals be apportioned among the variousemployments? Upon what basis would the wages of millions of workmen bedetermined? Could so mechanical an agency as government foresee futurebusiness conditions expertly enough to direct the productive forces ofthe nation effectively? If prices are no longer to be fixed bycompetition, how, and by means of what agency, are they to bedetermined? These are only a few of the vital questions which would arise inconnection with the administration of a socialist state. Varioussuggestions have been made with regard to some of these difficulties, but there is among socialists no general agreement as to the answer ofany one of these questions. They continue to constitute, in the eyesof practical men, a grave obstacle to socialism. 156. DANGERS OF A SOCIALIST BUREAUCRACY. --Governmental power wouldhave to be very highly centralized if a socialist state wereeffectively to administer the nation's economic activities as a unit. But this very concentration of power might easily result in thedevelopment of a bureaucracy. Waste and the possibility of corruptionhave unfortunately characterized even those governments over which thepeople exercise considerable control; it seems probable that thegreater centralization of authority demanded by socialism wouldincrease rather than decrease these dangers. It is to be noted here that the socialists, who might be supposed toconsider as paramount the interests of society or of the public, arethe very people who are least inclined to do anything of the kind. [Footnote: This concept was suggested to me by Professor Thomas NixonCarver of Harvard University. ] Socialists look upon the state only asan agency for benefiting particular groups of individuals. Theemphasis of political socialism upon class struggle, the frankadmissions of the I. W. W. That they seek to suppress all but thelaboring class, and the establishment by the bolshevists of adictatorship of the proletariat, all these facts indicate thatsocialists seek the welfare of particular groups rather than thewelfare of the general public. But class legislation is repugnant to the principles of Americandemocracy. We believe in government by the masses and for the masses;furthermore, we are committed to the ideal of as much individualfreedom and as little governmental compulsion as is compatible withthe good of both individual and community. The concept of a socialistbureaucracy, administered in the interests of particular groups, runscounter to our fundamental beliefs and ideals. 157. SOCIALISM WOULD DESTROY PERSONAL INITIATIVE. --One of thestrongest arguments against socialism is that it would destroypersonal initiative. Socialism runs counter to human nature by under-valuing the principle of self-interest. Economists are generallyagreed that the abolition of the institution of private property wouldcause the ambition of the individual to slacken. In spite of itsdefects, it is the competitive system, with its promise of reward tothe energetic and the capable, which is largely responsible for themiraculous prosperity of modern times. Men ordinarily will not undergosystematic training, perfect inventions, strive to introduce greaterand greater economies into their business, or undertake the risk ofinitiating new enterprises, unless they are assured that they will beable to enjoy the fruits of their labor. And not only would socialism discourage ambition by abolishing privateenterprise, but it might encourage inefficiency and shiftlessness. Every man would be guaranteed a job, every individual would beprotected against want. It is even likely that a socialist state wouldundertake to rear and provide for the offspring of its citizens. Humanexperience indicates that this degree of paternalism would encouragelaziness and increase irresponsibility. It is sometimes said that under socialism men would work as eagerlyfor social esteem as they now work for financial gain. This would be ahighly desirable condition, but unfortunately there is nothing inhuman experience to justify the hope that such a state of affairs willspeedily be realized. The spread of altruism in the modern world isheartening, but no sensible person will shut his eyes to the factthat, for the immediate future at least, self-interest promises to bemuch more widespread than altruism. The love of gain may not be thehighest motive in life, but it is better than none, and for a longtime to come it will probably be the one which appeals most stronglyto the average man. Socialists and non-socialists alike deplore thedomination which self-interest exercises over human affairs. Butwhereas the non-socialist wisely tries to adapt a program ofindustrial reform to this hard fact, many socialists appear to believethat because the principle of self-interest often works out badly, they ought to act as though that principle did not exist. 158. SOCIALIST THEORY OF DISTRIBUTION UNSOUND. --Both socialists andnon-socialists admit that poverty is an undesirable condition. Butover the method of improving the condition of the poor the socialistand the non-socialist disagree. The defender of capitalism begins bypointing out that, under competitive conditions, the unskilled laboreris poor primarily because his labor is not highly productive. Thesocialist ignores this fact, and insists that the laborer shallreceive a share of wealth which shall be adequate to his needs. As weshall have occasion to point out in the next chapter, this attitude ofthe socialist indicates a fundamental defect in his theory. Socialismpays more attention to who shall eat and how much shall be eaten, thanit does to the more fundamental question of how food is to beproduced, and how much can actually be produced. Laws may oblige anemployer to give his workmen twice as much as they add to the value ofhis product, but though this will benefit the workmen while it lasts, such a practice would, if widely adopted, lead to industrialbankruptcy. [Footnote: It is assumed, in this section, that theproductivity of the laborer is determined from the point of view ofthe employer. This is in accordance with the productivity theory whichwas discussed in Chapter IX. ] 159. SOCIALIST THEORY OF VALUE UNSOUND. --Many of the defects of thesocialist doctrine are traceable to the fact that it rests upon falseassumptions. One of these false assumptions is that commodities havevalue in proportion as labor has been expended upon them. This labortheory of value has been discarded by every authoritative economist ofmodern times. As has been pointed out in Chapter VIII, value dependsupon scarcity and utility. The soundness of the scarcity-utilitytheory, as well as the unsoundness of the labor theory, may be broughtout with reference to three classes of goods. First, there are commodities which have value in spite of the factthat no labor has been expended upon them. Virgin land, the gift ofNature, is the most important example. Articles of this class havevalue because they satisfy men's wants, _i. E. _ have utility, andbecause they are scarce. Labor has nothing to do with their originalvalue. Second, there are commodities which have no value, even though muchlabor has been expended upon them. A building erected in a desert orin a wilderness is an example. Unwanted books, or paintings by unknownartists are other examples. Commodities in this class may represent agreat expenditure of labor, and still have no value, first becausethey do not satisfy anyone's wants, and second because they are notscarce, _i. E. _ there are not fewer of them than are wanted. Third, articles may have a value which is out of proportion to theamount of labor expended upon them. The value of diamonds, old coins, and rare paintings is disproportionate to the actual amount of laborinvolved in their production. A sudden change in fashion may cause thevalue of clothing and other commodities to rise or fall, with littleor no regard for the amount of labor expended upon them. In each caseit is not labor that determines value, but scarcity and utility. 160. LABOR NOT THE ONLY FACTOR IN PRODUCTION. --Labor is an importantfactor in production, but land, capital, coördination, and governmentare also of vital importance to any modern industrial community. Thegreat error of the socialist is that he over-estimates the importanceof the laborer, and minimizes or altogether denies the importance ofthe individuals with whom the laborer coöperates in production. Thiserror is explainable: the laborer does most of the visible andphysical work of production, while the part played by the landowner, the capitalist, and the entrepreneur is less physical and often isapparently less direct. The complexity of the industrial mechanismvery often prevents the laborer from appreciating the true relationexisting between his own physical labor, and the apparently indirectand often non-physical efforts of those who coöperate with him. It isin this connection that producers' coöperation and bolshevism haveperformed a great service. They have demonstrated, by the out-and-outelimination of the managing employer, that the laborer alone cannotcarry on modern industry. Such actual demonstrations of the value offactors of production other than labor are of far more service incorrecting the viewpoint of the socialist than is any amount oftheoretical argument. 161. THEORY OF CLASS STRUGGLE UNWARRANTED. --The theory of classstruggle is based upon the claim that the laborer produces all wealth. But we have seen this claim to be unfounded; therefore the theory ofclass struggle is built upon an error. Ultimately, the theory of classstruggle tends to injure the very class which seeks to gain byadvocating it, for true and permanent prosperity for the laboringclass (as well as for all other classes) can result only when all ofthe factors of production work together harmoniously. Fundamentallythe quarrel between capital and labor [Footnote: The phrase "capitaland labor" is loose and inaccurate, but is in common use. Used in thissense the word "capital" refers to the capitalist and employingclasses, while the word "labor" refers to the workers. See Section181, Chapter XVIII, for a fuller discussion. ] is as suicidal as thoughthe arms of a human body refused to coöperate with the other members. There are, indeed, many antagonisms between capital and labor, butsocialism seeks to foment, rather than to eliminate them. Socialismpreaches social solidarity and prosperity for all, but by inciting theclass struggle it makes for class hatred and a disharmony betweencapital and labor which decreases prosperity and threatens economicruin. 162. HISTORY HAS DISPROVED SOCIALISM. --Karl Marx bases his theory of afuture socialist state upon a number of predictions, none of which hascome true. According to Marx, socialism was inevitable. He declaredthat the centralization of wealth in the hands of the capitalists, onthe one hand, and the increasing misery of the workers on the other, would accentuate the class struggle and bring about the downfall ofcapitalism. As a matter of fact, laws are more and more restrictingthe undue concentration of wealth in the hands of a few. The middleclasses, far from disappearing, as Marx predicted, are increasing innumbers and in wealth. The working classes are not becoming poorer andmore miserable, but are securing a larger and larger share of thejoint income of industry. The socialist revolution came in 1917, not in the most enlightenedcountry in the world, as Marx had predicted, but in Russia, one of themost backward of civilized countries. This revolution did notdemonstrate the superiority of socialism over capitalism, but revealedthe fundamental weaknesses of socialism, and led to a more widespreadrecognition of the merits of the capitalistic system. In the progressive countries of western Europe and America, thelikelihood of a socialist revolution has been greatly diminished bytwo developments. These developments, both of which were unforeseen byMarx, are as follows: first, the improving condition of the workershas rendered socialist doctrine less appealing; second, the increasingeffectiveness of legislation designed to remedy the defects ofcapitalism has caused attention to be directed to legislative reformrather than to socialism. With many who were formerly socialists, thesupreme question has become, not how to destroy the present order, buthow to aid in perfecting it by means of appropriate legislation. 163. SOCIALISM CLAIMS TOO MUCH. --Socialism often appeals strongly topeople who are unable to distinguish between plans which arerealizable and promises which cannot be fulfilled. For example, socialism promises greatly to increase the productive power of thenation, to shorten the hours of labor, and to insure a justdistribution of wealth. These reforms, it is claimed, would beaccompanied by the elimination of unemployment, poverty, vice, andattendant evils. It is maintained that socialism would encourage ahigher moral tone and a healthier and more vigorous social life thannow exist. Without doubt these are desirable aims, but we must face the hard factthat socialism is not likely to attain them.. Some of the ills whichsocialism claims to be able to cure are neither attributable tocapitalism, nor open to remedy by socialism. For example, crises andunemployment are often due to the alternations of good and badharvests, to the varying degrees of severity in successive winters, tonew mechanical inventions, and to changes in fashion. These forces arebeyond the effective control of any state. This being so, it is unfairfor socialists to attribute their evil effects to capitalism. It islikewise unwarranted that socialism should claim to be ableeffectively to control these forces. Other industrial evils are due to the infirmities of human nature, andto the fact that we are a highly civilized people living more and moreunder urban conditions. Crime, vice, and disease are grave socialproblems which demand solution, but it is unfair for socialism tocharge these evils against capitalism. Such defects are due partly tothe fact that we are human, and partly to the fact that much of modernlife is highly artificial. Unless socialism contemplates a return tosmall, primitive communities, there is nothing to indicate that itwould be able materially to reduce crime, vice, nervous strain, orill-health. Indeed, there is no evidence to show that socialism couldmake as effective headway against these evils as we are making undercapitalism. 164. DEFECTS OF SOCIALISM OUTWEIGH ITS MERITS. --It is only after theadvantages of a system or an institution have been carefully weighedagainst its disadvantages that its value appears. A socialist systemwould have some obvious merits. It might eliminate unemployment, sinceeveryone would be an employee of the state, and, as such, would beguaranteed against discharge. Charitable aid would probably beextended to many people now left to their own resources. But certainly socialism could not cure ills which are due either tonatural causes, or to the infirmities of human nature. The abolitionof private initiative and of private property would strike at the rootof progress. Socialism would also probably give rise to a series ofnew problems, such as the evils arising out of a bureaucratic form ofgovernment. As its program now stands, it is probably fair to say thatthe defects of socialism greatly outweigh its merits. 165. SOCIALISM UNDER-RATES CAPITALISM. --The ardor of the socialistoften causes him to underestimate the merits of capitalism, and toexaggerate its defects. The striking achievements of capitalism, so incontrast with the negative character of socialism, are not generallyappreciated by the socialist. On the other hand, the socialist placesan undue emphasis upon the defects of the present system. The radicalagitator too often overlooks the millions of happy, prosperous homesin this and other countries; he too often sees capitalism in terms ofpoverty, crises, unemployment, vice, disease, and extravagance. Our age is not to be despaired of. An age of progress is always an ageof adaptation and of adjustment, and it is precisely because Americandemocracy is both a progressive ideal and a living, growinginstitution that it is confronted with problems. The socialistindictment is not a prelude to chaos, for through the process ofadjustment we are making steady progress in solving our problems. Capitalism has served us well, and though it has defects, these areclearly outweighed by its merits. So long as we know of no othersystem which would work better, we are justified in retainingcapitalism. 166. NECESSITY OF A DEFINITE PROGRAM OF INDUSTRIAL REFORM. --Socialismappeals to certain types of people because it offers a confidentprogram, even though it is a mistaken and probably a dangerousprogram. And it is the almost universal failure of non-socialists toadvance a substitute program that is responsible for a large share ofthe resentment which industrial evils have aroused among non-socialists. _If not socialism, what?_ is the cry. We are challenged tomove, to do something, to present a reform program which will justifythe rejection of socialism. Lest our survey of industrial reform seem negative and devoid ofconstructive elements, therefore, the next chapter will be devoted towhat may be called a democratic program of industrial reform. Thebasic idea of this program is that poverty is as unnecessary asmalaria or yellow fever, and that we can abolish poverty withoutsacrificing private property, personal initiative, or any of the otherinstitutions which we hold dear. QUESTIONS ON THE TEXT 1. What are some of the administrative difficulties which wouldconfront a socialist state? 2. Why would socialism tend to give rise to a bureaucratic government? 3. In what way does socialism run counter to human nature? 4. In what way does the socialist differ from the non-socialist in hisattitude toward the principle of self-interest? 5. In what way is the socialist theory of distribution unsound? 6. Demonstrate the unsoundness of the labor theory of value, withreference to three classes of goods. 7. How may we explain the socialist's tendency to overestimate theimportance of labor, and to underestimate the value of other factorsof production? 8. Explain clearly the statement that "history has disprovedsocialism. " 9. In what way does socialism claim too much? 10. Name some industrial evils which socialism probably could notcure. 11. What is meant by the statement that "socialism under-ratescapitalism"? 12. Why is it necessary for non-socialists to advance a program ofindustrial reform? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xvi. Or all of the following: 2. Brasol, _Socialism versus Civilization_, chapter ii. 3. Bullock, _Selected Readings in Economics_, pages 681-705. 4. Ely, _Outlines of Economics_, chapter xxxi. 5. Le Rossignol, _Orthodox Socialism_, chapters viii and ix. 6. Skelton, _Socialism, a Critical Analysis_, chapter iii. QUESTIONS ON THE REQUIRED READINGS 1. What is the "American conception of equality"? (Brasol, pages 75-76. ) 2. Why is the wage system a necessary feature of modernindustrial life? (Brasol, page 93. ) 3. What is the importance of the spirit of enterprise in increasingnational wealth? (Brasol, page 99. ) 4. What effect has the development of entrepreneur ability had uponthe condition of the laboring classes? (Le Rossignol, pages 112-113. ) 5. Could collective production be carried on in a democratic country?(Bullock, pages 682-683. ) 6. Could socialism increase the productivity of the nation? (Bullock, pages 685-688. ) 7. What are some of the difficulties which a socialist state wouldencounter in distributing wealth? (Bullock, pages 688-693. ) 8. What difficulties would confront a socialist state in fixing wages?(Bullock, pages 696-705. ) 9. What has been the effect of the Industrial Revolution upon thecondition of the laboring classes? (Le Rossignol, pages 107-108. ) 10. Explain why Marx's prediction of an increasing concentration ofwealth in the hands of a few has not come true. (Le Rossignol, pages128-130. ) 11. To what extent is socialism too pessimistic about the presentorder? (Le Rossignol, page 138. ) 12. To what extent does socialism overestimate industrial evils?(Skelton, page 53. ) 13. What service has been rendered by socialism? (Ely, page 638. ) 14. What, according to Skelton, is the fundamental error of socialism?(Skelton, pages 60-61. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a list of a number of familiar commodities, and divide theminto three classes for the purpose of testing the error of the labortheory of value, and the truth of the scarcity-utility theory. (Consult Section 159. ) 2. Make a study of unemployment in your locality, with particularreference to unemployment due to (a) climatic changes, (b) changes in fashion, (c) accidents, such as fire, flood or earthquake. 3. Interview an elderly friend or relative, with the purpose ofsecuring a definite idea of the condition of the working classes ahalf century ago. Contrast with the condition of the laborers to-day. 4. Make a list of the notable inventions of the nineteenth century. Towhat extent has each increased the productivity and well-being of thevarious occupational groups in your community? II 5. History of socialism. (Consult an encyclopedia. ) 6. Varieties of socialism. (Ely, _Outlines of Economics_, chapterxxx. ) 7. The Iron Law of wages. (Le Rossignol, _Orthodox Socialism_, chapteriii. ) 8. The socialist's attitude toward industrial crises. (Le Rossignol, _Orthodox Socialism_, chapter vi. ) 9. Objections to the socialist's attitude toward production. (Ely, _Strength and Weakness of Socialism_, part iii, chapter vi. ) 10. Objections to socialism as a scheme of distribution. (Ely, _Strength, and Weakness of Socialism_, part iii, chapter viii. ) 11. Socialism and American ideals. (Myers, _Socialism and AmericanIdeals_. ) 12. Social justice without socialism. (Clark, _Social Justice withoutSocialism_. ) CHAPTER XVII A DEMOCRATIC PROGRAM OF INDUSTRIAL REFORM [Footnote: The title of this chapter, as well as the material inSections 170-175, has been adapted, by permission, from the writingsand lectures of Thomas Nixon Carver, Professor of Economics in HarvardUniversity. ] 167. THERE IS NO SIMPLE REMEDY FOR THE DEFECTS OF CAPITALISM. --Theeconomic system of a modern civilized nation is a vast and complicatedaffair, and its defects are both numerous and deep-lying. No onereally familiar with the problem would propose so simple a remedy associalism for so complex a disease as industrial maladjustment. History affords many examples of schemes that were designed toeliminate poverty from the world suddenly and completely, but no suchscheme has succeeded. Let it be understood at the outset of this chapter, therefore, thatreally to eliminate the basic defects of our industrial system we mustresort to a series of comprehensive reforms rather than to a singlescheme or theory. These reforms must be so wisely planned and socarefully executed as to attack the evils of capitalism from a numberof angles simultaneously. The attack must be partly by legislative, and partly by non-legislative methods. The series of reforms referred to above must have three aims: first, to give every individual exactly what he earns; second, to make itpossible for every individual to earn enough to support himself andhis family at least decently; and third, to teach every individual touse wisely and economically the income which he receives. A program embodying these three aims has the disadvantage of seemingcommonplace and slow of fulfillment to those who prefer novel andsensational schemes, but it has the advantage of being both workableand safe. 168. THE NATURE OF JUSTICE. --Among the advocates of socialism the word"justice" is much used, but apparently little understood. Justice inindustry implies that every individual shall receive precisely what heearns, no more, no less. If a monopolist secures unearned profits, there is injustice. If a laborer adds to the value of a product to theextent of five dollars, there is injustice if he receives less thanfive dollars in wages. Similarly, there is injustice if the laborerearns only four dollars, but receives five dollars. Wherever there isan unfair distribution of wealth, there is a double injustice: someindividual gets a share of wealth which he did not earn and to which, therefore, he is not entitled; while the individual who did earn thatwealth is deprived of it. 169. THE IMPORTANCE OF THIS. --All right-thinking reformers will agreewith the socialist that much or all of the unearned wealth of themoneyed classes ought to be taken for the benefit of the community. But he who accepts the democratic program of industrial reform willnot sanction the socialist's proposal to eliminate poverty primarilyby decreeing higher wages. In the first place, this proposal of the socialist is unjust. A manwho earns three dollars a day may not be able to live on that amount, and it may be desirable for some agency to give him more than threedollars a day. But that would be charity, not justice. It would be, aswe have just seen, a double injustice. In the second place, such a practice would lead inevitably to nationalbankruptcy. Under the competitive system, wages tend to be determinedby productivity. To attempt to eradicate poverty primarily by theraising of wages is futile, for employers cannot long pay out in wagesmore than the laborer adds to the product. Some employers might do sofor a long time, and all employers might do so for a short time, butif the practice were nation-wide and long-continued, it would resultin economic ruin. To put a premium upon propagation by guaranteeingevery man a job, and to pay him, not according to productivity, butaccording to need, would be equivalent to building up a giganticcharitable institution. Charity is a necessary and laudable function, but the proper care of the dependent classes is possible only when themajority of the people are not only self-supporting, but actuallyproduce a surplus out of which the unfortunate can be cared for. Ifapplicants for charity too largely outnumber those producing asurplus, national bankruptcy results. In the third place, an increase in wages might not benefit even thosereceiving higher wages unless they were able and willing to spendtheir income wisely and economically. 170. THE REDISTRIBUTION OF UNEARNED WEALTH. --The first step in ourprogram is to apply the principle of justice to the problem ofunearned wealth. The student should be careful at this point todistinguish between wealth which has been earned, however great, andwealth which has been acquired by unjust methods. American democracywill tolerate no interference with wealth which has been earned; onthe other hand, it demands that unearned riches be redistributed inthe form of services performed by the government for the people as awhole. There are three chief methods of redistributing unearned wealth. Thefirst is by means of increased taxes on land. As was pointed out inthe chapter on single tax, that income from land which is due, not tothe efforts of the owner, but either to natural fertility or to thegrowth of the community, may be considered as unearned. While thesingle tax is too drastic a reform, it is unquestioned that we needheavier taxes upon the unearned increment arising from land. A second method of redistributing unearned wealth is through theapplication of inheritance taxes. Reserving the whole problem oftaxation for later discussion, [Footnote: See Chapter XXXII. ] it maybe said here that in many cases large sums are willed to individualswho have done little or nothing to deserve them. In so far as this istrue, and in so far as such a tax does not discourage the activitiesof fortune builders, the inheritance tax is a desirable means ofredistributing unearned wealth. The last method of redistributing unearned wealth is by a tax on thoseelements in profits which are due to the abuse of monopoly conditions. [Footnote: Monopoly will be treated more fully in Chapters XXVII andXXVIII. ] Complete monopoly rarely exists, but in many businesses thereis an element of monopoly which allows the capitalist or entrepreneurto secure a measure of unearned wealth. In the interest of justice, much or all of this ought to be taken for the use of the community. 171. SOMETHING MORE THAN JUSTICE IS NECESSARY. --It is an error tosuppose that justice would necessarily eliminate either low wages orpoverty. As we have seen, justice would require the redistribution ofa large amount of unearned wealth. But much more important is thequestion of large numbers of laborers whose wages are undesirably low. If the rule of justice were applied to this latter class, that is, ifthey were given just what they earned, many would continue to be poor. Indeed, if justice were strictly administered, it is even possiblethat among a few groups poverty would increase, since some individualsare incapable of really earning the wages they now receive. Something more than justice, therefore, is necessary. We must not onlysee that a man gets as much as he produces, no more, no less, but wemust make it possible for every individual actually to produce or earnenough to support himself decently or comfortably. This, in essence, is the distinction between the socialist and the liberalist, _i. E. _ hewho accepts the democratic program of industrial reform: the socialistwould practice injustice and invite economic ruin in a vain effort toeliminate poverty; the liberalist seeks the abolition of povertywithout violating either justice or economic law. 172. WHY WAGES ARE LOW. --A little thought will show that directly orindirectly poverty is sometimes the result of low wages. It follows, thus, that the source of some poverty would be dried up if an increasein wages could be secured in an economical manner. To come to theheart of the problem, wages are low because productivity is low. Thatis to say, employers operating under conditions of free competitionwill pay laborers in proportion as the latter give promise of addingto the value of the product. When men are scarce, relatively to thesupply of land and capital, the employer will be justified in offeringhigh wages, because under those circumstances the productivity of eachof his prospective employees will be high. He will actually offer highwages, because if he does not, the laborers will tend to hire out tohis competitors. But if laborers are plentiful, relatively to thesupply of the other factors of production, the employer will be forcedto offer lower wages, because under the circumstances each of theprospective employees shows promise of being able to add relativelylittle to the value of the product. In such a case, the employer willactually offer low wages because he need not fear that his competitorswill hire all of the laborers applying for jobs. Thus when laborers are plentiful, relatively to the demand, theautomatic functioning of the law of supply and demand will result inlow wages. We need not waste time debating whether or not there oughtto be such a thing as the law of supply and demand; a far moreprofitable exercise is to recognize that such a law exists, and toconsider how our program of industrial reform may be adapted to it. 173. AN ECONOMICAL REMEDY FOR LOW WAGES. --Low wages are generally theresult of low productivity, and low productivity is in turn the resultof an oversupply of laborers relatively to the demand. Granting thetruth of these premises, an economical remedy for low wages involvestwo steps: first, the demand for labor [Footnote: By "labor" is heremeant those types of labor which are poorly paid, becauseoversupplied. Unskilled day labor is an example. ] must be increased;and second, the supply of labor must be decreased. Any measure whichwill increase the demand for labor, relatively to the demand for theother factors of production, will increase the productivity of labor, and will justify the payment of higher wages. Competition betweenprospective employers will then actually force the payment of higherwages. Similarly, any measure which will decrease the supply of laborwill strengthen the bargaining position of the laborer, and, otherthings remaining equal, will automatically increase wages. 174. INCREASING THE DEMAND FOR LABOR. --If we bear in mind that modernindustry requires a combination of the various factors of production, it will be seen that the utilization of laborers depends upon theextent to which land, capital, and entrepreneur ability are present tocombine with those laborers. Where there is a large supply of thesefactors, many laborers can be set to work. Thus one way of increasingthe demand for labor is to increase the supply of land, capital, andentrepreneur ability. The available supply of land can be increased by several methods. Irrigation, reclamation, and dry farming increase the available supplyof farm land. The fertility of land may be retained and increased bymanuring, rotation of crops, and careful husbandry. Improvedagricultural machinery will also enable land to be used in largerquantities and in more productive ways. And while we do not think ofman as actually creating land, the draining of swamps and the fillingin of low places increases the available amount of both farm and urbanland. By whatever means the amount of available land is increased, theeffect is to open more avenues to the employment of laborers. The supply of capital may be increased chiefly by the practice ofthrift among all classes of the population. Capital arises mostrapidly when individuals produce as much as possible, and spend aslittle as possible for consumers' goods. Any measure which willdiscourage the well-to-do from wasteful or luxurious ways of living, and at the same time encourage the poor to save systematically, eventhough they save only a trifle, will add to the supply of availablecapital. Every increase in the supply of capital will enable more andmore laborers to be set to work. Entrepreneur ability may be increased by a variety of methods. Thetraining of men for business callings increases the supply ofentrepreneurs. Taxes on inheritances, excess profits, and the unearnedincrement of land will tend to force into productive work many capablemen who now either idle away their lives, or retire from businessprematurely. It is also important that the well-to-do classes beencouraged to rear larger families, since it is these classes whichcan best afford to give their children the higher forms of trainingand education. Lastly, it is desirable to teach that leisure isdisgraceful, and that whether one is rich or poor, the useful andproductive life is the moral and patriotic life. "He who does lesswell than he can does ill. " 175. DECREASING THE SUPPLY OF LABOR. --Hand in hand with measuresdeigned to increase the demand for labor should go consistent effortsto decrease the supply of unskilled and poorly paid labor. One of themost effective means of accomplishing this is to restrict by law theimmigration to this country of masses of unskilled workers which glutthe American labor market and force down the wages of unskilledworkmen already here. The general problem of immigration will bediscussed elsewhere; here it is only necessary to note that as aneconomic proposition unrestricted immigration is undesirable. The supply of unskilled labor may be somewhat restricted by additionallaws. It is clear that we ought to pass and enforce laws which wouldprevent the propagation of mental defectives. There ought also to belaws which would discourage the marriage of individuals who show nopromise of being able to rear and support children who are physicallyfit. It might not be expedient to pass legislation requiring a certainminimum income of persons intending to marry, but from the purelyeconomic point of view, such laws would certainly be advisable. Much in this general field can be done by non-legislative methods. Young people can be taught the desirability of postponing marriageuntil their earnings justify the acceptance of such a responsibility. Just as the well-to-do should be encouraged to prefer family-buildingto social ambition, so the poorer classes ought to be encouraged topostpone marriage until, through education or training, the propersupport of a family is assured. This end must be secured through moraland social education, rather than through legislation. The encouragement of thrift among the poorer classes of the populationis an important factor in decreasing the supply of unskilled labor. Thrift increases savings, and by making possible education orapprenticeship in a trade, it enables the children of the unskilledworker to pass from the ranks of the poorly paid to the ranks of therelatively well paid. Thus not only does the practice of thrift by thepoor add to the amount of capital in existence, and thus indirectlyincrease the demand for labor, but it helps the poor directly andimmediately. Vocational education is of fundamental importance in decreasing thesupply of unskilled labor. It renders higher wages economicallyjustified by training individuals away from overcrowded and hencepoorly paid jobs, and toward those positions in which men are scarce, and hence highly paid. If vocational education turns unskilled workmeninto entrepreneurs, such education has the doubly beneficial effect oflessening the supply of unskilled labor, and of increasing the demandfor labor. The importance of trade schools, continuation schools, andother agencies of vocational education can hardly be exaggerated. Employment bureaus and labor exchanges are essential to the democraticprogram of industrial reform. Just as vocational education must moveindividuals from overcrowded to undercrowded occupations, so theemployment bureau should move laborers from places where they arerelatively little wanted, and hence poorly paid, to places where theyare relatively much wanted, and hence better paid. A coördinatedsystem of national, state, and municipal employment bureaus is avaluable part of our program of industrial reform. 176. IMPORTANCE OF PERSONAL EFFICIENCY. --We have seen that thebargaining position of the laborer may be strengthened by any and allmeasures which would increase the demand for his labor, relatively tothe demand for the other factors of production. As a generalproposition, this strengthened position would tend automatically toresult in higher wages. Along with these measures it should not be forgotten that theindustrial position of the individual worker tends to improve inproportion as he increases his personal efficiency. It is of thegreatest importance that the individual should strive to secure asthorough an education as possible, and that he safeguard himselfagainst accident and disease. He should realize, also, that employersseek men who are not only competent, but whose personal habits areattractive and trust-inspiring. Regardless of the scarcity oroversupply of labor, personal efficiency will tend to enable theworker to receive larger wages than would otherwise be possible. 177. SOMETHING MORE THAN HIGH WAGES IS NECESSARY. --We have taken sometime to point out how wages might be increased without violatingeconomic law. But high wages do not necessarily mean the abolition ofpoverty, indeed, actual investigations have proved that often povertyexists regardless of whether wages are high or low. A family of four, for example, might be well fed, comfortably clothed, and otherwisecared for in a normal manner, on, say, three dollars a day, providedthat sum were utilized wisely. A second family of equal size, however, might spend six dollars a day so carelessly that the children would bedenied such vital necessities as medical attention and elementaryeducation, while neither parents nor children would be adequatelyprovided with food or clothing. 178. INCOME MUST BE UTILIZED WISELY. --Thus an indispensable factor inthe abolition of poverty is the economical utilization of income. Aside from the fact that it increases the amount of capital inexistence, thrift is imperative if a family is to get the full benefitof its income. In both the home and the school the child should betaught the proper care and utilization of money. He should receive, inaddition, fundamental instruction in such matters as expense-accounting and budget-making. Of similarly great value is the trainingof boys and girls to a proper appreciation of the home-making ideal, to which subject we shall return later. [Footnote: See Chapter XXIII. ] It is fortunate that we are directing more and more attention to theseand similar measures, for they strike at the heart of one of the greatcauses of poverty--the inability of the individual to make the properuse of his income. Unless our citizens are trained to spend moneywisely, and to distinguish clearly between the relative values ofservices and commodities, an increase in wages will never eliminatemalnutrition, illiteracy, and other elements of poverty. 179. SUMMARY. --For the sake of clearness, let us summarize theessential features of the democratic program of industrial reform. The first aim of this program is to give every individual preciselywhat he earns, no more, no less. Applying the principle of justicewould result in heavy taxes on unearned wealth secured throughinheritance, or as rent from land, or as monopoly profits. The second aim of our program arises from the fact that justice mightnot improve the condition of the laboring class, since some laborersmanifestly could not earn enough to support themselves and theirfamilies decently. In addition to administering justice, therefore, we must put theindividual in a position to earn an amount adequate to his needs. Thisinvolves two lines of action: first, the bargaining position of thelaborer must be strengthened by measures designed to increase thedemand for his labor, relatively to the demand for the other factorsof production; second, increasing the personal efficiency of theworker will render him more attractive to the employer. The third aim of the democratic program of industrial reform is toteach the individual to use his income wisely and economically. Onlyafter this has been done can we be assured that the raising of wageswill materially improve the condition of the worker. 180. SOCIAL PROBLEMS. --There is an important word to be said here. Thedemocratic program of industrial reform is economically sound, andultimately it would eliminate poverty. But it is not an immediate curefor all of the social and economic ills of American democracy. Therewill long continue to be persons whom no amount of care can rendercapable of earning enough to support themselves. There are many otherindividuals who may ultimately become self-supporting, but who forsome time to come will need special care and attention. There are, lastly, many other individuals who are partially or entirely self-supporting, --women and children, for example, --but whose social andeconomic interests need to be safeguarded by legislation. Thedemocratic program of industrial reform could ultimately eliminatemany of the basic social problems now confronting us; meantime we areunder the necessity of grappling with such questions as labordisputes, the risks of industry, crime, and dependency. Indeed, nomatter how vigorously and intelligently we attack the defects ofcapitalism, it is probable that we shall always have to face gravesocial problems. Part III of the text will accordingly be devoted to aconsideration of American social problems. QUESTIONS ON THE TEXT 1. Why is there no simple remedy for the defects of capitalism? 2. What are the three aims of the program advanced in this chapter? 3. What is the nature of justice? 4. In what sense is an unfair distribution of wealth a doubleinjustice? 5. Under what conditions would the raising of wages tend to result innational bankruptcy? 6. What are the three chief methods of redistributing unearned wealth? 7. Why does the elimination of poverty demand something more thanjustice? 8. What is the fundamental cause of low wages? Explain clearly. 9. What is an economical remedy for low wages? 10. Why will higher wages result from an increase in the demand forlabor? 11. By what three methods may the demand for labor be increased? 12. Name some of the methods whereby the supply of labor may bedecreased. 13. What is the importance of personal efficiency in our program? 14. What is the relation of wages to poverty? 15. What is the importance of an economical utilization of income? 16. Summarize the argument in this chapter. 17. Why is the program outlined not an immediate panacea for allsocial and economic ills? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xvii. Or allof the following: 2. Carver, _Elementary Economics_, chapters xiv, xxix, xxxi, andxivii. 3. Carver, _Essays in Social Justice_, chapter i. QUESTIONS ON THE REQUIRED READINGS 1. Why does the need for justice arise? (_Essays_, page 3. ) 2. What is the first duty of the state? (_Essays_, page 9. ) 3. What is moral law? (_Essays_, page 23. ) 4. What is the relation of meekness to national strength? (_Essays_, pages 33-34. ) 5. What is meant by a "balanced nation"? (_Elementary Economics_, pages 118-119. ) 6. What is the aim of balancing a population? (_Elementary Economics_, page 119. ) 7. Name an important method of securing this balance. (_ElementaryEconomics_, pages 119-120. ) 8. What classes of the population multiply the least rapidly? Why isthis undesirable? (_Elementary Economics_, page 120. ) 9. What is the object of the "geographical redistribution ofpopulation"? (_Elementary Economics_, page 120. ) 10. Explain the working of the "law of variable proportions" inindustry. (_Elementary Economics_, pages 258-260. ) 11. Why are there differences of wages in different occupations?(_Elementary Economics_, page 268. ) 12. What is the "law of population"? (_Elementary Economics_, page273. ) 13. What is the effect of immigration upon wages? (_ElementaryEconomics_, pages 273-274. ) 14. What are the two ways of getting men to do what is necessary forthe prosperity of the nation? Of these two ways, which is preferable?(_Elementary Economics_, pages 387-388. ) 15. What are the dangers of freedom? (_Elementary Economics_, pages389-390. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a study of the occupational groups in your locality for thepurpose of discovering which of these groups receive the lowest wages. Can you connect the fact that they receive low wages with theirnumerical strength? 2. Is the supply of unskilled labor in your community affected byEuropean immigration? If so, attempt to trace the relation of thisimmigration to low wages in your community. 3. What classes of workmen receive the highest wages in your locality?What is the relation of these high wages to the restricted number ofthis type of workman? 4. Study the methods by means of which land in your locality isutilized. In what ways, if in any, could various plots be made toemploy more laborers? 5. By what means could the supply of capital in your locality beincreased? In what ways might this increased supply of capital beutilized? To what extent would the utilization of this increasedsupply of capital justify the employment of additional laborers? 6. Do you believe that your community needs more entrepreneurs? Whatreason have you for believing that a training school for the technicalprofessions would increase the productivity of your community? 7. Write to the Bureau of Education in your state for data relative tothe status of vocational education in your commonwealth. 8. Interview one or more officials of a bank in your community for thepurpose of learning of the ways in which banks encourage thrift. 9. Write to the Bureau of Labor Statistics in your state forinformation relative to the status of public employment bureaus inyour commonwealth. II 10. Causes of inequality. (Taussig, _Principles of Economics_, vol. Ii, chapter liv. ) 11. The Malthusian doctrine. (Malthus' _Essay on Population_. If thisessay is not available, consult an encyclopedia under "Malthus. ") 12. The principle of self-interest. (Carver, _Essays in SocialJustice_, chapter iii. ) 13. How much is a man worth? (Carver, _Essays in Social Justice_, chapter vii. ) 14. Causes of the scarcity of labor. (Carver, _Elementary Economics_, pages 269-271. ) 15. The importance of consumption. (Carver, _Elementary Economics_, chapters xxxviii and xxxix. ) 16. Importance of thrift. (_Annals_, vol. Lxxxvii, pages 4-8. ) 17. Luxury. (Carver, _Elementary Economics_, chapter xl. ) 18. Choosing a vocation. (Parsons, _Choosing a Vocation_. ) PART III--AMERICAN SOCIAL PROBLEMS CHAPTER XVIII INDUSTRIAL RELATIONS 181. LABOR AND CAPITAL. --Strictly speaking, five distinct factors areinvolved in production: land, labor, capital, coördination, andgovernment. As a matter of fact, we are accustomed to speak of theimmediate conduct of industry as involving only two factors: labor andcapital. Used in this sense, the term labor refers to the masses ofhired workmen, while the term capital is held to include not only theindividual who has money to invest, _i. E. _ the capitalist proper, butalso the entrepreneur, or managing employer. Labor and capital coöperate actively in production, while the otherfactors remain somewhat in the background. As we have seen, both laborand capital are essential to industry, and fundamentally theirinterests are reciprocal. But in spite of this basic harmony, thereare many points of difference and antagonism between labor andcapital. This chapter discusses the more important of thesedisagreements, and outlines some suggested methods of reducing oreliminating them. 182. THE FACTORY SYSTEM AND THE LABORER. --Wherever it has penetrated, the Industrial Revolution has concentrated large numbers of landlesslaborers in industrial establishments controlled by relatively fewemployers. Very early in the development of the factory system, thelaborer saw that he was at a relative disadvantage in bargaining withemployers. Not only does the average laborer lack funds to tide himover a long period of unemployment, but the fact that his labor isgenerally his sole reliance obliges him to secure work at all hazards. The anxiety and discontent of laborers have been increased by therealization that the factory system affords little opportunity for theaverage workman to rise to the position of an employer. Most laborersare unable to secure either the training or the capital necessary toset themselves up as independent business men. 183. RISE OF LABOR ORGANIZATIONS. --The risks and limitations which thefactory system imposes upon the laboring classes have encouragedworkmen to organize for the purpose of promoting their mutualinterests. The individual gains, it has been found, when his interestsare supported by a group of workmen acting as a unit, and bringingtheir united pressure to bear upon the employer. The labororganization has been the result of this discovery. A labororganization may be defined as a more or less permanent and continuousassociation of wage earners, entered into for the purpose of improvingthe conditions of their employment. The first labor organizations in the United States were formed earlyin the nineteenth century, but it was not until about 1850 that thetrade union assumed national importance. After 1850, however, andparticularly after the Civil War, the trade union grew rapidly. In1881 a number of national trade unions combined to form the AmericanFederation of Labor. This body, while exercising no real authorityover the trade unions comprising it, is nevertheless an importantagency in coördinating trade union policies throughout the country. Itis important, also, as a means of formulating and expressing the aimsand ideals of the working classes. The Federation had a membership of2, 604, 701 in 1914, and in 1920 included more than 4, 500, 000 members. With the exception of the railroad brotherhoods, nearly all of theimportant trade unions in the country are affiliated with the AmericanFederation of Labor. 184. RISE OF EMPLOYERS' ASSOCIATIONS. --The growing power of the tradeunion after 1850 stimulated the growth of employers' associations. In1886 the first national employers' association was organized under thename of the Stove Founders' National Defence Association. Later therewas formed a number of other important associations, including theNational Association of Manufacturers, the National Council forIndustrial Defence, and the American Anti-Boycott Association. The primary purpose of the employers' association is the protection ofthe employers' interests against trade union aggression. Some of theassociations are frankly hostile to the trade union movement, whileothers take the stand that the organization of laborers is undesirableonly if the power of the trade union is abused. The promotion offriendly relations between labor and capital is increasingly animportant concern of the employers' association. 185. WHAT THE TRADE UNION WANTS. --One of the basic aims of the tradeunion is either to raise wages or to prevent their reduction. Becauseof the constant shiftings of supply and demand, the prices ofcommodities are rarely stationary for very long. Over any extendedperiod of time prices are either rising or falling. During a period ofrising prices the workmen are at a relative disadvantage, [Footnote:Rising prices affect all who purchase commodities, of course, but herewe are intent upon the position of the laborer only. ] because theyhave to pay for commodities higher prices than they had anticipatedwhen they contracted to work for a definite wage. In such a case, theunion attempts to secure higher wages for its members. When, on theother hand, prices are falling, the workmen gain, because they do nothave to pay as high prices as they had anticipated. In this lattercase, the laborers attempt to maintain their advantage by opposing anyreduction in wages. The desire of the trade unions to improve the general condition of theworking classes has steadily widened the program of organized labor. Shorter hours and better conditions of work are important trade uniondemands. Unions quite generally approve the principle of a minimumwage, [Footnote: The principle of the minimum wage is discussed in thenext chapter, Sections 205-207. ] at least for women and child workers. Formerly, and to some extent even now, the unions have opposed theintroduction of labor-saving machinery on the grounds that itdisplaces workmen and hence causes unemployment. Union membersgenerally prefer to be paid by the hour or by the day, rather than somuch per unit of product. The reason given for the preference is thatstrain and undue fatigue often result from _piece-work, _ as the systemof pay on the basis of units of product is called. Trade unionsuniversally demand that employers recognize the principle ofcollective bargaining, by which is meant the privilege of workmendealing with the employer collectively or through the union. Veryoften, also, the unions demand the closed shop, that is to say, a shopfrom which all non-union employees are excluded. 186. WHAT THE EMPLOYER WANTS. --Price movements likewise affect theemployer. But whereas the laborer is at a relative disadvantage whenprices are rising, the employer tends to gain, for the reason that hesecures for his product higher prices than he had expected. [Footnote:In a period of rising prices, the employer's costs also tend to rise, but generally not so rapidly as do prices. ] Suppose, for example thata shoe manufacturer can make a profit if a pair of shoes sells for$4. 00. If later the price rises to $5. 00 and his expenses remainstationary or very nearly so, he reaps an unusually large profit. Andwhereas in a period of falling prices the laborer tends to gain, theemployer often loses heavily, for the reason that he must sell at arelatively low price goods produced at a relatively high cost. If, inthe case given above, the price of the pair of shoes falls from $4. 00to $3. 00, while the expenses of the manufacturer remain stationary, orvery nearly so, he may make little or no profit. Thus while prices arerising the employer attempts to maintain his advantage by resisting anincrease in wages, while in a period of falling prices he seeks to cutdown his expenses by reducing wages. In either case the immediateinterests of workmen and employer are antagonistic. Just as the growing complexity of the industrial situation hasenlarged the trade union program, so the aims of employers havesteadily increased in number and in importance. On the grounds that itrestricts the fullest utilization of his plant, the employer veryoften objects to a shortening of the working day, even where there isa corresponding decrease in the day-wage. Some employers are unwillingto provide sanitary workshops for their employees, or otherwise toimprove the conditions of employment. The employer generally objectsto the minimum wage, as constituting an interference with his "right"to offer workmen what wages he chooses. Collective bargaining isaccepted by many employers, but many others insist upon the right tohire and discharge men as they see fit, without being forced toconsider the wishes of the union. Employers often oppose the closedshop, and insist upon the open shop, an open shop being defined as onein which workmen are employed without regard to whether or not theyare members of a union. 187. METHODS OF INDUSTRIAL WARFARE. --Both capital and labor back uptheir demands by a powerful organization using a variety of weapons. The trade union generally attempts to enforce its demands by threatof, or use of, the _strike_. A strike is a concerted stoppage of workinitiated by the workmen as a group. Sometimes accompanying the strikeis the _boycott_, which may be defined as a concerted avoidance ofbusiness relations with one or more employers, or with those whosympathize with those employers. The strike is generally accompaniedby the practice of _picketing_, by which is meant the posting of unionagents whose duty it is to attempt to persuade non-union workmen notto fill the places of the striking workmen. Pickets may also attemptto persuade customers not to patronize the employer against whom astrike has been launched. Sometimes picketing leads to _intimidationand violence_ on the part of either strikers or representatives of theemployers. In turn, the employer may employ a variety of weapons against workmenwith whom he cannot agree. An employer may make use of the _lockout_, that is, he may refuse to allow his labor force to continue at work. Many employers also use the _blacklist_, _i. E. _ the circulation ofinformation among employers for the purpose of forewarning one anotheragainst the employment of certain designated workmen. The employer mayalso attempt to end a strike by persuading non-union men to fill theplaces vacated by the strikers. Such men as accept are known as_strike-breakers_. On the plea that the strike may result in thedestruction of his property, the employer may resort to the_injunction_. This is an order secured from a court, and restrainingcertain laborers in the employer's interest. 188. THE COST OF INDUSTRIAL WARFARE. --The struggles of labor againstcapital constitute a species of warfare which involves the generalpublic. Regardless of whether a particular dispute ends in favor ofthe laborers or the employer, every strike, lockout, or otherinterference with industrial coöperation lessens the amount ofconsumable goods in existence. Thus aside from the fact thatindustrial warfare encourages class antagonisms, it is an importantcause of the relative scarcity of goods, and the resulting tendency ofprices to rise. Often great injury results from a dispute whichoriginally was of small proportions. In 1902, for example, theanthracite coal strike cost the country more than $100, 000, 000, thoughthe strike had been initiated because of a local dispute overrecognition of the union. In 1919, when we were suffering from ageneral scarcity of goods, there occurred in this country more thanthree thousand strikes, involving a loss of more than $2, 000, 000, 000in decreased production. 189. NECESSITY OF INDUSTRIAL PEACE. --Industrial warfare very oftenresults in the correction of abuses, but in many cases it seems tobring little or no benefit to either labor or capital. In any case, itis a costly method, and one which constitutes a menace to the peace ofthe community. American democracy demands that in the settlement ofdisputes between labor and capital, industrial warfare be replaced bysome method less costly, less violent, and more in harmony with theprinciples of justice and civilized behavior. Responsibility for thepresent extent of industrial warfare cannot definitely be placed uponeither capital or labor, but at least both sides should be obliged torecognize that the public is a third party to every industrialdispute. We should insist upon fair play for both capital and labor, but we should likewise insist that the interests of the public besafeguarded. 190. SOME METHODS OF INDUSTRIAL PEACE. --As has already been pointedout, profit sharing is not of great importance in lessening industrialunrest. Various systems of bonuses and pensions have temporarilyimproved the position of some groups of workmen, but experience hasproven both bonuses and pensions to be limited in scope. Employers areoften unwilling to adopt such devices as these, while the laborersfrequently regard them as paternalistic measures which at best are apoor substitute for the higher wages to which they consider themselvesentitled. Existing evils are often lessened by welfare work, whichincludes such measures as the establishment of schools, libraries, andplaygrounds for the laborers. But in many cases welfare work isinitiated by the employer for the purpose of diverting the attentionof the workmen from their fundamental grievances, and for this reasonit is often opposed by the workmen. All of the measures enumerated inthis section are of more or less value, but as methods of combatingindustrial warfare, they have proved to be palliative, rather thanremedial or preventive. 191. THE TRADE AGREEMENT. --In some industries there is a growingtendency for employers not only to recognize the union, but also tomake a collective contract, or trade agreement, with the unionizedworkmen. The trade agreement may lead to the formation of councils inwhich representatives of both workmen and employer attempt to reach afriendly agreement upon disputed matters. The trade agreement has beenparticularly successful in many industries in England. In this countryit is best known in the soft coal mining industry in eastern UnitedStates, and in the needle trades of New York City. On the whole, thetrade agreement has not been markedly successful in the United States. Although it smoothes out minor differences, the unions still prefer toback their more important demands by use of the strike. 192. VOLUNTARY ARBITRATION. --Since 1898 the several states have beengiving an increasing amount of attention to the creation of boards ofindustrial conciliation, mediation, and arbitration. [Footnote: Thewords conciliation, mediation, and arbitration are variously used, butthe following distinction may be of use. Mediation is an attempt toget the disputants to come together for the purpose of discussingtheir grievances. Conciliation is aid extended to the disputants inthe actual settlement of the dispute. Arbitration implies that a thirdparty settles the dispute and renders a decision. ] Most states nowhave some provision for a board whose duty it is to attempt toeliminate industrial warfare. The powers and duties of these boardsvary from state to state. In some states the board may investigatelabor disputes on its own initiative, but it is not obliged to make aninvestigation. In other states the investigation of industrialdisputes is compulsory. Boards of the type discussed in this section have no power to _compel_the disputants to arbitrate their troubles, though they may _persuade_the parties involved to resort to arbitration. When the disputantsagree to allow the state board to arbitrate the dispute, and when alsothey previously promise to abide by the decision of the board, theaward of the state board is binding upon both sides. When the partiesto the dispute have not previously agreed to abide by the award, theboard cannot force an acceptance of its decision, but can only relyupon public sentiment to help effect a just settlement. 193. COMPULSORY ARBITRATION IN NEW ZEALAND AND AUSTRALIA. --Thefrequent refusal of labor and capital willingly to submit theirdifferences to arbitration has led to the development of the principleof compulsory arbitration. In New Zealand, compulsory arbitration was adopted as early as 1894. In that country the arbitrating body is known as the court ofarbitration, the decisions of which are absolute and binding. At thediscretion of the court, the awards handed down may be extended toembrace other employees or employers in the same trade, or in the samelocality, or in the whole country. Violations of the award, either bylabor or by capital, are punishable by heavy fines. An even moredrastic form of compulsory arbitration has been adopted in Australia. Due to the influence of many complicating factors, the status ofcompulsory arbitration in these two countries is uncertain. Manystudents of the question maintain that this form of arbitration hasmaterially reduced industrial warfare; on the other hand, otherauthorities declare that compulsory arbitration in New Zealand andAustralia has not markedly improved industrial relations. 194. COMPULSORY ARBITRATION IN THE UNITED STATES. --Although theprinciple of compulsory arbitration has been familiar to Americanstudents of labor problems for more than a quarter of a century, thereis as yet very little sentiment in favor of its application toindustrial disputes in this country. The explanation of this is notfar to seek. Individualism is so strong in the United States thatcompulsory arbitration is regarded by many Americans as an unwarrantedinterference in private business. It is still generally true that bothlabor and capital prefer to settle their disputes in open struggle. Equally important, perhaps, is the feeling that compulsory arbitrationlaws would nullify the constitutional guarantee that no citizen shallbe deprived of life, liberty, or property without due process of law. [Footnote: For an explanation of this point, see Chapter XIX, Section214. ] However, a definite step toward compulsory arbitration was taken whenin 1920 the State of Kansas established a Court of IndustrialRelations "for the purpose of preserving the public peace, protectingthe public health, preventing industrial strife, disorder, and waste, and securing regular and orderly conduct of the businesses directlyaffecting the living conditions of the people. " The law of 1920declared illegal the suspension of work in those industries which aredesignated as essential and necessary to the community life. Industrial disputes arising in such industries are subject tocompulsory arbitration by the court. The merits of this court arestill being debated. Some authorities declare that the court hasalready demonstrated its value, but other observers claim that so farthis tribunal has not operated to reduce labor troubles in Kansas. 195. STATUS OF THE DEMANDS OF LABOR. --For a number of years theattitude of labor has been clearly aggressive, while the attitude ofcapital has tended to be one of resistance. In view of this fact, thesimplest way of considering the merits of the industrial situation isto examine the demands of labor. The justice of these demands cannotbe gone into here, but a few words of general application may behelpful. The proper determination of wages depends, of course, upon theparticular circumstances. No general rule can be laid down, except thevery obvious one that wages cannot permanently go so high as to wipeout profits in an industry, nor yet so low as to render it impossiblefor the workmen to secure a decent living. The steady improvement of living and working conditions is desirable, and is a challenge to any progressive society. Shorter work hours are desirable, wherever the cutting down of theworking day does not too greatly hamper production. Many economistsfeel that an eight-hour day will prove a social gain only ifintroduced gradually. They believe that it should be introduced inproportion as the industrial productivity of the country increases tocompensate for the shortening of the working day. Opposition to the introduction of labor-saving machinery is bothuseless and short-sighted. The officials of most unions now adviseworkmen not to oppose the adoption of machinery, but rather to fitthemselves to operate the machines. The question of a closed shop or an open shop is largely a matter ofopinion. The problem will probably continue to be disputed for a longtime to come. Many students of labor conditions feel that the closedshop is justifiable only when accompanied by the open union. By anopen union is meant a union into which all laborers competent to dothe work are admitted freely. Where the open union principle isadopted, Professor Taussig points out, the closed shop is no longer amonopolistic device to shut out competition and raise wages for asmall group. It becomes, instead, a means of promoting mutual aid andcollective bargaining. Many employers still refuse to recognize the principle of collectivebargaining, but from the social point of view collective bargaining isdesirable. In many cases it so strengthens the position of thelaborers that they are able to compete with the employer more nearlyon terms of equality. Under such conditions competition in the labormarket is in a healthy state. The difficulty is, of course, that someunions may take advantage of their strengthened position to enforceunduly severe conditions upon the employer. 196. THE OUTLOOK. --Although it is probable that industrialdisagreements will long endure, we have a right to expect thatcontinued progress will be made in settling these disputes peaceably. By many it is believed that compulsory arbitration is the mosteffective method of securing industrial peace, but for reasons alreadygiven, the extension of this form of arbitration will probably be slowin this country. English experience would indicate that we have notyet exhausted the possibilities of the trade agreement, but thoughthis device is becoming better known in the United States, both theAmerican laborer and the American employer are still disposed tosettle their differences by means of the strike, the lockout, andsimilar weapons. The present century is an age of industrial stress and change, and itis possible that the ultimate solution of the disputes between laborand capital has not yet been advanced. From the data now at hand, however, it is maintained by many that labor disputes must ultimatelybe eradicated through the development of industrial democracy. Industrial democracy implies the joint direction of industrialpolicies by employer and employees, working together harmoniously andin the spirit of equality. When industrial democracy is attained, according to this view, mutual trust and the spirit of friendlycoöperation will enable labor and capital to adjust their differencespeaceably and economically, without dictation from any outside source. QUESTIONS ON THE TEXT 1. Why are we accustomed to speak of labor and capital as the twochief factors in production? 2. Why have labor organizations arisen? 3. Name some employers' associations. 4. Contrast the aims of the union with the aims of the employers'association. 5. Discuss the methods of industrial warfare. 6. Why is industrial warfare undesirable? 7. What is the attitude of American democracy toward industrialwarfare? 8. Name some minor methods of industrial peace. 9. Discuss the character of the trade agreement. 10. Distinguish between conciliation, mediation, and arbitration. 11. Discuss compulsory arbitration in New Zealand and Australia. 12. What is the significance of the Kansas Court of IndustrialRelations? 13. What is the outlook for industrial peace in this country? 14. Define industrial democracy. REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xviii. Or all of the following: 2. Bullock, _Elements of Economics_, chapter xiii. 3. Carlton, _History and Problems of Organized Labor_, chapter v. 4. Ely, _Outlines of Economics_, chapter xxii. 5. Fetter, _Modern Economic Problems_, chapter xx. QUESTIONS ON THE REQUIRED READINGS 1. What are the three types of labor organizations? (Fetter, page299. ) 2. Who were the Knights of Labor? (Bullock, page 316. ) 3. What is the economic justification of the trade union? (Ely, pages445-446. ) 4. Outline the history of the American Federation of Labor. (Carlton, pages 74-82. ) 5. What are some of the secondary functions of the trade union?(Fetter, pages 298-299. ) 6. Among what groups of workers is the trade union strong? Among whatgroups is it weak? (Fetter, page 300. ) 7. What effect has unionism had upon wages? (Fetter, pages 306-307. ) 8. What is meant by limitation of output? (Ely, pages 449-450. ) 9. What is a standard wage? (Bullock, pages 320-321. ) 10. What is the legal status of the strike? (Bullock, pages 328-329. ) 11. What is scientific management? (Bullock, pages 339-340. ) 12. What will probably be the future development of the trade union?(Ely, pages 468-469. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Origin and growth of the trade union movement in your section. 2. Select some one trade union for study. Obtain information on thefollowing points, either by means of literature issued by the union, or by personal interview with union officials: (a) Aims of the union. (b) Insurance benefits. (c) Political activities of the union. (d) Strike procedure. (e) Attitude toward arbitration. 3. Select for study an employers' association in your locality. Obtaininformation on the following points. (If no association is available, consult a friendly employer): (a) Attitude of the employer toward the trade union movement. (b) Attitude toward the closed shop. (c) What the employer does when a strike is launched against him. (d) Use of the injunction. (e) Attitude of the employer toward arbitration. 4. If possible, investigate an actual strike and report upon it. 5. The laws of your state with regard to mediation, conciliation, andarbitration. Do you think further legislation on this subject isadvisable? II 6. History of the trade union movement in the United States. (Consultany available text on labor problems. See also Carlton, _OrganizedLabor in American History_. ) 7. The Knights of Labor. (Any standard text on labor problems, or anencyclopedia. ) 8. Trade union policies. (_Bullock, Selected Readings in Economics_, pages 589-613. ) 9. Program of the American Federation of Labor. (Any standard text onlabor problems, or an encyclopedia. ) 10. The theory of price changes. (Taussig, _Principles of Economics_, vol. I, chapter xxii. ) 11. The problem of adjusting wages to prices. (Bloomfield, _SelectedArticles on Problems of Labor_, pages 56-75. ) 12. Reducing the labor turnover. (_Annals_, vol. Ixxi, pages 1-81. ) 13. Scientific management. (Any standard text on labor problems. Seealso Hoxie, _Scientific Management and Labor_. ) 14. Incorporation of the trade union. (Bloomfield, _Selected Articleson Problems of Labor_, pages 262-267. Commons, _Trade Unionism andLabor Problems_, chapter vi. ) 15. Employers' associations. (Any standard text on labor problems. ) 16. Principles of industrial relations, as formulated by the Chamberof Commerce of the United States of America. (Write to the Chamber'sheadquarters, Washington, D. C. , for copies. Also reprinted in Edie, _Current Social and Industrial Forces_, pages 346-381. ) FOR CLASSROOM DISCUSSION 17. Closed shop versus open shop. 18. Should trade unions be obliged to incorporate? 19. To what extent does compulsory arbitration constitute anunwarranted interference in private business? 20. The shortening of the working day. 21. Effect of the World War upon relations between labor and capital. CHAPTER XIX HEALTH IN INDUSTRY 197. INDUSTRY AND HEALTH. --Wherever the Industrial Revolution hasprogressed beyond the initial stages, there has been an enormousincrease in wealth and prosperity. At the same time, serious evilshave accompanied the transition from a relatively simple agriculturalstage to a stage dominated by the factory system. The tendency towardovercrowding in rapidly growing cities, the difficulties ofmaintaining a normal family life where mother or children are employedin factories, and the danger of overstrain, accident and disease inindustrial pursuits, all these factors render very important theproblem of health in industry. Though health in industry is only one phase of the general problem ofhealth, it will be impossible here to exhaust even that one phase. Weshall accordingly confine ourselves to the discussion of threequestions: first, child labor; second, the employment of women inindustrial pursuits; and third, the insurance of our industrialpopulation against accident, sickness, old age and unemployment. 198. CHILD LABOR: EXTENT AND CAUSES. --There are in this country morethan two million children between the ages of ten and fifteen, engagedin gainful occupations. In all sections of the country large numbersof children are found in agriculture, this industry generally beingbeyond the scope of child labor laws. The employment of children infactories, mines, quarries, mills, and shops, on the other hand, isnow considerably restricted by law. This is true of all parts of thecountry. However, child labor is still of wide extent in the UnitedStates, due to the large number of children found in agriculture, domestic service, street trades, stores, messenger service, andtenement homework. Of the immediate causes of child labor one of the most important isthe poverty of the parents. Where the parents are themselves daylaborers, it is often considered necessary or desirable to increasethe family earnings by putting the children to work. From the standpoint of the employer child labor is rendered possibleand even desirable by the development of types of work easilyperformed by small children. In many cases the tendency of parents toput young children to work is encouraged by the lax administration ofschool attendance laws. This tendency has also been encouraged by theindifference of the public to the evil effects of child labor. 199. EFFECTS OF CHILD LABOR. --Students of the problem of child laborunanimously condemn the practice of habitually employing youngchildren outside the home. Where poorly paid children compete with menand women, they serve either to displace adults, or, by competition, to lower the wages of adults. The effects upon the children themselves are injurious. Stunted, crippled, and diseased bodies are the result of steady work at tootender an age. Schooling is interrupted, so that child workersgenerally develop into illiterate and inefficient adults. Whenchildren are forced into gainful occupations at an early age, thefamily life is disrupted, and proper home training is difficult, ifnot impossible. Still another factor is the greater temptation to viceand crime confronting the child outside the home. 200. CHILD LABOR LAWS. --Since 1870 the growing acuteness of the childlabor problem, together with an aroused public opinion, has served toincrease the number of laws restricting child labor. At the presenttime, forty-five states forbid the employment in certain industries ofchildren under fourteen years of age. A Federal child labor law was passed in 1916, but two years later themeasure was declared unconstitutional by the Supreme Court. [Footnote:For an explanation of this point, see Section 214 of this chapter. ] In1919 a new Federal law was enacted. In order to avoid the charge ofunconstitutionality, this measure attacks child labor _indirectly_. The law levies an excise tax of ten per cent on the entire net profitsreceived from the sale of all the products of any mine, quarry, mill, cannery, workshop, factory, or manufacturing establishment, whichemploys children contrary to certain age and hour specifications. Theeffect of this ten per cent tax is so to reduce the profits of theemployers affected, as virtually to prohibit child labor. By thismeans the act prohibits child labor in several important groups ofindustrial establishments. The difficulty with the law is that it touches only about fifteen percent of our two million child workers. It does not affect, forexample, the large number of children employed in agriculture, domestic service, street trades, stores and restaurants, messengerservice, and tenement homework. 201. MINIMUM PROVISIONS OF A GOOD CHILD LABOR LAW. --The passage ofmore comprehensive child labor laws is being advocated by a number ofsocial agencies, notably by the National Child Labor Committee. Theminimum provisions of a good child labor law have been set forth bythe committee somewhat as follows: As a general proposition, no child should be regularly employed in againful occupation who is under sixteen years of age. There should bean even higher age limit for child workers in quarries, mines, andother dangerous places. Children should not work more than eight hoursa day. Nor should they be allowed to engage in night work until theyhave reached the age of, say, twenty years. All child applicants forindustrial positions should first be required to pass educationaltests and a physical examination. A good child labor law shouldprovide for a corps of factory inspectors, as well as for other meansof securing the efficient administration of the law. Lastly, it isimportant that there be close coöperation between employers and theschool authorities in the matter of child labor. 202. INCREASED NUMBER OF WOMEN IN INDUSTRY. --There have always beenwomen in industry, but of recent years the proportion of women soengaged has increased so rapidly as to create a serious socialproblem. From needlework, domestic service, and teaching, women havespread rapidly into trade, commerce, and the professions. A few yearsago transportation and police work were monopolized by men, but to-daywomen are entering these fields rapidly. Though they outnumber menonly in domestic and personal service, women are numerous inpractically every important calling except plumbing and streetcleaning. Altogether more than 8, 000, 000 women are engaged in gainfuloccupations in the United States. 203. WHY WOMEN RECEIVE LOWER WAGES THAN MEN. --Women generally receivelower wages than men. One reason for this is the physical weakness ofwomen, which renders them less desirable in many types of work. Socialconventions, home attachments, and, often, the lack of the venturesomespirit, combine to keep women from moving about in search of improvedworking conditions to the same extent as men. The expectation ofmarriage causes many young women to neglect to increase theirefficiency, and this at least prevents their wages from increasing asrapidly as those of young men who undergo consistent training. Thetrade union is still little developed among women workers, a factorwhich often prevents higher wages from being secured. Low wages areoften traceable to the fact that there is an over supply of girls andwomen in the labor market. Large numbers of girls and women arepartially supported at home, and are able and willing to work for"pin-money" only. Many employers take advantage of this fact to offervery low wages. 204. LEGISLATION REGULATING THE LABOR OF WOMEN. --Although it wouldseem desirable to keep young children out of industry altogether, there is a general agreement among students of the problem that thelabor of women ought to be further regulated rather than actuallyprohibited. A number of states have already enacted laws designed tosafeguard women in industry. In some states the number of workinghours for women has been cut from eleven to nine, while in otherstates the maximum number of hours during which women may work iseight. Some states prohibit night work for women in industrialestablishments. The great majority of the states now provide forproper rest periods, guarded machinery, the ventilation of workrooms, and, where practicable, seats for women employees. To the extent thatwomen actually do the same amount and quality of work as men, there isa growing feeling that men and women ought to receive equal pay. 205. THE MINIMUM WAGE. --A minimum wage law is one which specifies thatin certain occupations laborers may not be paid less than a stipulatedwage. The aim of the minimum wage is to protect the laborer againstemployment which, under freely competitive conditions, does not paywages high enough to guarantee a decent living. The first minimum wage law in the United States was passed byMassachusetts in 1912. The movement grew rapidly, and by 1921 morethan a dozen additional states had adopted minimum wage laws. In somestates the law applies only to specified industries; in others itcovers all occupations. In some states the law covers only theemployment of women, but in most cases the principle of the minimumwage applies to women and minors under eighteen, or even twenty-oneyears of age. In some foreign countries the minimum wage is alsoextended to the labor of men, but in the United States men areeverywhere exempted from the operation of such laws. 206. ARGUMENTS IN FAVOR OF THE MINIMUM WAGE. --The champions of theprinciple of the minimum wage advance a number of arguments in itsfavor. It is contended that no industry is socially desirable if itcannot pay a living wage, for when wages fall below a certain minimum, poverty, ill-health, and vice are natural results. When laborers arethemselves unable to improve their economic position, it is said, itbecomes the duty of the state to guarantee them a living wage. Anotherargument in favor of the minimum wage is that it not only eliminatesconsiderable poverty, but it makes possible a healthier and morecontented labor force. It is claimed that strikes and social unrestare partially eliminated by the minimum wage. 207. ARGUMENTS AGAINST THE MINIMUM WAGE. --In spite of the rapid spreadof minimum wage legislation in this country, the principle has metwith considerable opposition. It is claimed by some that where povertyis due to bad personal habits, the mere payment of a higher wage willnot abolish poverty. It is also urged that because of price changes, and because of differing concepts of a standard of living, it isdifficult to determine what is really a living wage. Some employersmaintain that the minimum wage is contrary to economic law, since itforces the payment of a wage which the laborer often does not earn. The compulsory nature of the minimum wage is also opposed on thegrounds that it constitutes an undue interference with individualrights. [Footnote: Formerly an important argument against the minimumwage was this: There are large numbers of people who cannot _earn_ theminimum wage, and because employers will tend not to employ them, suchpersons will have to be supported by charity. The force of thisargument is reduced, however, by the fact that most minimum wage lawsnow make special provision for the part-time employment of suchpersons. ] 208. THE RISKS OF INDUSTRY. --In spite of the fact that most States nowhave detailed laws providing for the guarding of machinery and thesupervision of dangerous occupations, a half million persons areinjured or killed annually in industrial employments in the UnitedStates. A considerable amount of ill-health is traceable to workingwith drugs and acids. Continued work in dusty mills and shops, as wellas long exposure to the excessively dry or excessively moistatmosphere required by certain manufacturing processes, also give riseto "occupational" diseases. Old age frequently brings poverty anddistress, in spite of a life of hard work. Lastly, the laborer runsthe risk of unemployment. 209. THE PRINCIPLE OF SOCIAL INSURANCE. --As a general rule, laborersdo not voluntarily insure themselves against illness, unemployment, accident, or old age. This is partly because they lack the necessaryfunds, and partly because they lack the foresight necessary for suchaction. If, therefore, the risks of industry are adequately to beinsured against, the initiative must be taken by some one other thanthe laborer. As a result of this situation, there has developed theprinciple of social insurance. Social insurance, as distinguished frominsurance by trade unions or private agencies, is compulsory, and isadministered, or at least supervised, by the state or Federalauthorities. From the standpoint of the community, social insurance may bejustified on four grounds. First, the risks of industry are largelybeyond the control of the individual workman, and hence he ought notto be held wholly responsible for the penalties which industry mayinflict upon him. Second, the community gets the benefit of thelaborer's efforts, and thus ought to feel morally obligated tosafeguard his employment. Third, an injury to the laborer restrictsthe productivity of the community by crippling or removing one of itsproductive agents. Fourth, compulsory insurance is a social necessity, for where nothing has been laid aside for a rainy day, theinterruption of earnings subjects the laborer and his family tohardship and disaster. Wisely administered social insurance prevents agreat deal of poverty and distress which would otherwise constitute anadded burden upon charitable organizations. 210. INSURANCE AGAINST ACCIDENT. --Accident insurance has been afeature of social insurance programs in Germany, France, and GreatBritain for almost a half century, but in this country it was notuntil 1910 that compulsory insurance against industrial accidentsbegan to be effective. Since 1910, however, the movement has grownrapidly, and at the present time the majority of the states providefor compensation to workmen for accidents sustained in connection withtheir work. Formerly our courts quite generally held that when aworkman could be shown to have suffered an accident because of"personal negligence, " the injured person was not entitled tocompensation. Under the accident insurance laws of most states it isnow held, however, that the personal negligence of the injured workmandoes not forfeit his right to receive compensation. In most states the cost of accident insurance is borne primarily bythe employer. 211. INSURANCE AGAINST SICKNESS. [Footnote: Sometimes known as healthinsurance. ]--Compulsory sickness insurance has been highly developedin several European countries, but so far we have left insurance ofthis type to private effort. The question is attracting considerableattention in this country, however, and it is believed that this formof social insurance will soon be provided for by state law. In 1914the American Association for Labor Legislation outlined a modelsickness insurance law. Such a law would provide a sickness benefitfor a number of weeks, arrange for medical care, and, in case ofdeath, pay a funeral benefit. The cost of such insurance would bedivided equally between workmen and employer, while the state wouldbear the cost of administering the law. This cost would beconsiderable, because illness may be feigned, and hence there wouldhave to be more careful supervision than in the case of accidentinsurance. 212. INSURANCE AGAINST OLD AGE. --Compulsory insurance against old ageis an important feature of social insurance systems in Europeancountries, but it is very little known in the United States. We arefamiliar with the Federal pensioning of military veterans, and withlocal pensions for firemen and policemen, as well as with state andlocal pensions for teachers. Such insurance does not, however, touchthe question of aged employees in industrial pursuits. Trade unionssometimes provide a measure of old age insurance for their members, but the proportion of workmen affected by this practice is very small. In 1920, a beginning toward compulsory old age insurance was made, when a Federal law provided for compulsory old age insurance for thecivil service employees of the Federal government. The question ofcompulsory old age insurance is also being agitated in a number ofstates. 213. SHOULD SOCIAL INSURANCE EXTEND TO UNEMPLOYMENT?--It is contendedby many that to insure workmen against the loss of their jobs wouldencourage shiftlessness, and that for this reason the principle ofsocial insurance ought not to apply to unemployment. It is obvious that a considerable share of unemployment is traceableto personal negligence, and it is probably true that insurance againstunemployment would discourage thrift and foresight on the part of manyworkmen. On the other hand, it has been shown statistically that alarge share of unemployment is due to crop failures, marketfluctuations, and other conditions beyond the control of the workmen. In so far as this is true, there would be a great deal of unemploymentwhether it were insured against or not. Because, therefore, someunemployment is inevitable, and because unemployment is in many casesbeyond the control of the individual, it becomes necessary, or atleast desirable, for the state to insure workmen against thisunavoidable risk. Insurance against unemployment has never been tried out in thiscountry, but it is likely that we shall some day follow the example ofthe leading European countries, and include this type of protection inour general program of social insurance. 214. OBSTACLES TO LABOR LEGISLATION. --Labor legislation of the typediscussed in this chapter is making rapid headway in the UnitedStates. Nevertheless, it should be noted that in this field we arebehind the more advanced countries of western Europe. The chiefexplanation of this relative backwardness is that the extension oflabor legislation in this country has met with considerableopposition. The reasons for this opposition may be summed up asfollows: First, the spirit of individualism is so strong in this country aseffectively to check legislation which appears paternalistic. The weakposition of women and children in industry has somewhat lessened theforce of this argument in the case of laws designed to safeguard thesetwo groups, but labor legislation in behalf of men is still regardedsuspiciously in many quarters. Second, it is difficult to secure uniform laws among the severalstates. Labor legislation in this country has been primarily a stateconcern, but the attitude of the various states toward socialinsurance, the minimum wage, and other types of labor legislation, hasbeen so divergent that the resulting laws have often been conflicting. In many cases states fear to enact laws which they believe will hamperlocal employers and encourage the migration of capital to states whichare more lenient in this regard. Third, an important obstacle to labor legislation in the United Stateshas been the difficulty of enacting laws which the courts will notdeclare unconstitutional. The constitutional provision [Footnote: Seethe fifth amendment to the Federal Constitution, Appendix. ] that noone shall be deprived of life, liberty, or property without dueprocess of law has often been interpreted by the courts in such a wayas to nullify laws designed to safeguard the interests of the workingclasses. For example, a law restricting the employment of women mightbe declared unconstitutional on the grounds that it interferes withthe "liberty" of women to work as many hours, and for as small a wage, as they choose. Within the last decade, however, the obstacle of constitutionalityappears to have declined in importance. Our Supreme Courts oftenreverse their own decisions, as well as negative the decisions of thelower courts, and it is therefore difficult to ascertain what is trulythe trend of judicial decision. Nevertheless, many authorities believethat we are on the verge of an era in which the courts will weighlabor legislation primarily in the light of its social benefit, andonly secondarily with respect to how it squares with thetechnicalities of the Constitution. QUESTIONS ON THE TEXT 1. What three questions are discussed in this chapter? 2. What is the extent of child labor in the United States? 3. What are some of the causes of child labor? 4. What are the chief results of child labor? 5. Discuss Federal legislation with respect to child labor. 6. Outline the minimum provisions of a good child labor law. 7. Why do women generally get lower wages than men? 8. What is meant by the minimum wage? 9. What are the chief arguments in favor of the minimum wage? 10. Give the chief arguments against it. 11. What is meant by social insurance? 12. Discuss the four forms of social insurance. Which have beenapplied in this country? 13. What are the three great obstacles to labor legislation in thiscountry? Which of these appears to you to be the most important? Whichappears to you to be the easiest to overcome? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xix. Or allof the following: 2. Burch and Patterson, _American Social Problems_, chapter xiv. 3. Ely, _Outlines of Economics_, chapter xxviii. 4. Fetter, _Modern Economic Problems_, chapter xxiii. 5. Taussig, _Principles of Economics_, Vol. Ii, chapter viii. QUESTIONS ON THE REQUIRED READINGS 1. Why is child labor not always the cheapest labor? (Burch andPatterson, page 172. ) 2. What is the sweat shop system? (Burch and Patterson, page 174. ) 3. What are the chief occupations in which women are found? (Burch andPatterson, page 175. ) 4. What is meant by the "dangerous trades"? (Burch and Patterson, pages 176-177. ) 5. What is the extent of railway accidents in this country? (Burch andPatterson, pages 178-179. ) 6. What are the main causes of irregular earnings? (Taussig, page323. ) 7. What form of social insurance was first developed in this country?(Ely, page 588. ) 8. Outline the British Workmen's Compensation Act. (Taussig, page325. ) 9. What are the main features of the German system of old ageinsurance? (Taussig, page 331. ) 10. What difficulties are encountered in insuring workmen againstunemployment? (Taussig, pages 337-340. ) 11. What is the "contributory principle" in social insurance? (Fetter, pages 363-364. ) 12. What are the chief objections to social insurance? (Ely, pages593-594. ) TOPICS FOR INVESTIGATION AND REPORT 1. The extent of child labor in your state. 2. Control of child labor by the laws of your state. 3. The difficulties of enacting child labor legislation to cover theemployment of children in agriculture. Interview some one familiarwith farming conditions for data on this topic. 4. Relation of child labor to the administration of the schoolattendance laws in your community. 5. Extent to which women are employed in industrial establishments inyour community or state. 6. Interview a friendly employer on the relative desirability of menand women employees. 7. The status of the minimum wage in your state. 8. Social insurance in your state. 9. Interview the officials of a trade union concerning the payment ofsickness insurance by the union. 10. The emergency treatment of injured workmen in a near-by mill orfactory. Compare this treatment with the treatment outlined in thereferences which are appended to Topic 21. II. 11. Causes of child labor. (Mangold, _Problems of Child Welfare, _ partiv, chapter i. ) 12. Effects of child labor. (Mangold, _Problems of Child Welfare, _part iv, chapter iii. ) 13. Women in industry. (Select some phase of this problem for report. Consult Butler, _Women and the Trades;_ MacLean, _Women _Workers andSociety_; Kelley, _Some Ethical Gains through Legislation; Annals, _vol. Lxv; Abbot, _Women in Industry, _ and similar works. ) 14. Relation of home conditions to industrial efficiency. (_Annals, _vol. Lxv, pages 277-288. ) 15. Industrial efficiency of women compared with that of men. (Lee, _The Human Machine and Industrial Efficiency, _ chapter x. ) 16. Housing the unskilled worker. (Wood, The _Housing of the UnskilledWage-earner. _) 17. Work of the National Housing Association. (Write to theassociation office in Washington, D. C. , for descriptive literature. ) 18. Summary of Irving Fisher's report on national vitality. (_Bulletinof the Committee of One Hundred on National Health, _ etc. , preparedfor the National Conservation Commission, by Irving Fisher, Washington, 1909. ) 19. Preventable diseases. (Hutchinson, _Preventable Diseases. _) 20. Occupational diseases. (Oliver, _Diseases of Occupation. _) 21. How to act in case of an accident. (Gulick, _Emergencies; Tolman, Hygiene for the Worker, _ chapter xvi. ) 22. The right to leisure time. (Kelley, _Some Ethical Gains throughLegislation, _ chapters in and iv. ) 23. Legal status of workmen's compensation. (_Annals_, vol. Xxxviii, No. I, pages 117-168. ) 24. Health insurance. (Rubinow, _Standards of Health Insurance_, chapters iii and iv. ) 25. The police power. (Guitteau, _Government and Politics in theUnited States_, chapter xii. ) FOR CLASSROOM DISCUSSION 26. The minimum wage for men. 27. Should old age and sickness insurance be made a feature of thesocial insurance program of your state? 28. Should pensions be paid out of public funds to mothers havingdependent children? 29. Should labor legislation be enacted primarily by the Federal or bythe state governments? CHAPTER XX IMMIGRATION AND ASSIMILATION 215. RACIAL ELEMENTS IN OUR POPULATION. --The Federal census of 1920gave the population of continental United States as 105, 710, 620. Approximately nine tenths of this population is white, while about onetenth is negro. Those who are neither white nor negro, namely, American Indians and Asiatics, together constitute less than one halfof one per cent of the population. The great majority of our people are either European immigrants, orthe descendants of European immigrants who came to this country withinthe last century and a half. With reference to European immigration wedistinguish three groups: the foreign-born, the native-born childrenof the foreign-born, and natives. Natives include those whoseancestors have been in this country two or more generations. On thebasis of this classification, about one seventh of our population isforeign-born while over one third is either foreign-born or thenative-born children of foreign-born parents. The ease with which immigrants have adapted themselves to Americanlife prevents any accurate classification of nationalities in ourpopulation, but probably Great Britain and Ireland, Germany, Italy, Russia, (including Poland), and Austria-Hungary have, in the ordernamed, contributed the largest numbers. 216. THE "OLD" IMMIGRATION. --European immigration to the United Statesmay be divided into two groups, the "old" and the "new. " The "old"immigration extended from the beginning of our national history toabout the year 1880, and was derived chiefly from Great Britain andIreland, Germany, and the Scandinavian countries. Between 1820 (thefirst year for which we have accurate records) and 1880, about ninetenths of our immigrants came from these countries. The striking features of the "old" immigration should be noted. Incomparison with present-day immigration, it was relatively small involume. In view of the abundance here of free land, and our consequentneed for pioneers, the small volume of immigration prevented the riseof any serious problem. Moreover, the "old" immigration was largelymade up of individuals who were similar to the original Americancolonists in political ideals, social training, and economicbackground. The "old" immigration therefore merged with the nativestock fairly easily and rapidly. 217. THE "OLD" GIVES WAY TO THE "NEW" IMMIGRATION. --In the periodcentering about the year 1880 there was a distinct shift in theimmigration movement. Whereas before 1880 most of our immigrants hadbeen Anglo-Saxons and Teutons from northern Europe, after 1880 themajority of our immigrants were members of the Mediterranean andSlavic races from southern and southeastern Europe. Before 1880 aboutnine tenths of the aliens coming to our shores were from northernEurope and only one tenth were from southern and southeastern Europe. In the period since 1880, less than one fourth of our immigrants havecome from northern Europe, while more than three fourths have beenderived from southern and southeastern Europe. The bulk of this newimmigration has come from Russia, Poland, Austria-Hungary, Greece, Turkey, Italy, and the Balkan countries. 218. INCREASING VOLUME OF IMMIGRATION. --Since it is in connection withthe "new" immigration that the modern immigration problem arises, itwill be profitable to inquire more fully into the character of themovement after about 1880. Not only has the character of immigration changed since the eighties, but the volume of immigration has steadily increased. Of approximately35, 000, 000 immigrants who have come to our shores since 1800, morethan half have come within the last thirty-five years. The peak ofimmigration was reached in the decade preceding the World War, when asmany as a million and a quarter of immigrants landed in this countryin a single year. This heavy flow was interrupted by the World War, but after the signing of the armistice in the fall of 1918, a heavyimmigration again set in. [Footnote: Various classes of immigrantsare excluded from the United States by the immigration laws summarizedin section 223 of this chapter. In addition to these laws, which maybe said to constitute the basis of our permanent immigration policy, President Harding signed, in May, 1921, a bill relative to thetemporary exclusion of aliens who would ordinarily be admissible. Thistemporary exclusion act provided that between July 1, 1921, and June30, 1922, the number of immigrants entering the United States from anyother country might not exceed three per cent of the former immigrantsfrom that country who were within the bounds of the United States atthe time of the last census. ] 219. DISTRIBUTION OF THE "NEW" IMMIGRATION. --One of the mostsignificant facts in connection with the immigration problem is thatour immigrant population is unequally distributed. About two thirds ofthe immigrants in this country are in the North Atlantic division;about a quarter of them are located in the North Central division;while less than one tenth are located in the western and southernsections of the country combined. Three fourths of our foreign-bornlive in the cities of the North Atlantic and North Central divisions. Forty per cent of the present population of New York City is foreignborn, while in Boston and Chicago more than a third of the populationis foreign born. In the smaller manufacturing cities of the NorthAtlantic division it often happens that from half to four fifths ofthe population is foreign born. 220. ECONOMIC EFFECTS OF IMMIGRATION. --In the earlier part of ournational history free land was abundant and immigration relativelysmall in volume; after the eighties free land disappeared andimmigration increased rapidly. It was toward the end of the nineteenthcentury, therefore, that the economic aspect of the immigrationproblem became acute. In the last decades of that centurymanufacturing developed rapidly, and American cities became importantcenters of population. Large numbers of immigrants were attracted bythe opportunities for employment in urban centers. An addition to thisfactor, immigrants continued to concentrate in the cities, partlybecause of the spirit of clannishness, partly because of thedisappearance of free land, and partly because the development ofagricultural machinery reduced the demand for agricultural laborers. Still another influence was the fact that the unfamiliar American farmwas less attractive to the southern European immigrant than was theopportunity of performing unskilled labor in the city. To-day fourfifths of our immigrants are unskilled laborers who are employedchiefly in mining, construction work, transportation, and domesticservice. From the economic standpoint, the chief objection to unrestrictedimmigration is that it prevents the wages of American workmen fromrising as rapidly as would otherwise be the case. The newly arrivedimmigrant usually has a lower standard of living than has the nativeAmerican; that is to say, the immigrant is content with less in theway of food, clothing, house room and education than is the native. When newly arrived immigrants come into competition with nativeworkmen, the immigrant generally offers to work for a lower wage thanthe native. But though relatively low, this wage is so much higherthan the newly arrived immigrant has been used to, that he feelsjustified in marrying early and rearing a large family. This adds tothe supply of unskilled labor. In order to compete with the recent immigrant, the native must acceptrelatively low wages. In order to get along on these relatively lowwages, the native must either lower his standard of living or postponemarriage. Sometimes he has lowered his standard of living; sometimeshe has preferred to retain his relatively high standard of living, andto get along on the decreased wage either by postponing marriage, orby permanently abandoning his plans for a normal family life. It iscontended, therefore, that an oversupply of unskilled immigrant laborin this country has had at least two injurious results. First, it haskept the standard of living of American workmen from rising as rapidlyas would otherwise have been possible. Second, it has caused the birthrate to decline among the native groups. 221. SOCIAL EFFECTS OF IMMIGRATION. --The tendency of immigrants toconcentrate in American cities gives rise to a number of serioussocial problems. Urban congestion is unqualifiedly bad. It isdifficult or impossible for immigrants living in crowded quarters tomaintain proper health standards. Nor does overcrowding conduce tohealthy morals. The foreign born do not show an unusual tendencytoward crime, which is remarkable when we consider the immigrant'signorance of our laws, as well as the ease with which unscrupulouspersons exploit him. On the other hand, the children of the foreignborn often show a strong tendency toward crime and vice, a fact whichis attributed to the bad social conditions surrounding their homes. The percentage of dependency among immigrants is rather high. This isnot surprising, however, for many immigrants must go through anadjustment period in which lack of financial reserves is likely toforce them to call upon charitable agencies for temporary aid. 222. DIFFICULTY OF ASSIMILATING THE "NEW" IMMIGRATION. --Those who madeup the "old" immigration assimilated rapidly: they were relativelylike the native stock in manners and customs, the volume ofimmigration was relatively small, and the newcomers spread out intofrontier communities where habitual contact with natives wasunavoidable. Those who make up the "new" immigration have assimilated less rapidly:they are relatively unlike the native stock in language, race, andcustoms; the volume of immigration is very great; and rather thanbeing uniformly distributed, the "new" immigrants tend to concentratein cities where they are often little subject to contact with natives. Members of foreign "colonies" not only tend to remain ignorant ofAmerican life, but unfamiliarity with self-government encourages theirexploitation by political "bosses. " It is admitted by the most carefulstudents that the lack of proper civic ideals among unassimilatedforeigners in American cities is a large element in the corruption ofour municipal governments. 223. RESTRICTIVE LEGISLATION. --Exclusive control of immigration isvested in the Federal government. During the Civil War Congressactually encouraged immigration, but since 1882 our policy has beenone of restriction. In the latter year the first general immigrationact was passed, though considerable legislation on the subject wasalready on the statute books. Supplementary laws were enacted fromtime to time, the most important piece of legislation since 1900 beingthe Immigration Act of 1917. A brief summary of this and previous actswill serve to show the nature and extent of Federal control overimmigration. The chief aim of our immigration laws has been so to restrictimmigration as to protect us against undesirable persons. In theinterest of health, persons afflicted with contagious diseases, suchas tuberculosis, and trachoma, --a virulent eye disease, --are excluded. Certain persons whose character is clearly immoral are excluded. Polygamists are excluded. The Act of 1917 excludes anarchists, andlikewise bars from our shores all criminals, except those who havecommitted political offenses not recognized by the United States. Inorder to reduce unnecessary tax burdens, as well as to safeguardcommunity health, we also exclude insane persons, idiots, epileptics, beggars, and other persons likely to become public charges. Contractlaborers are specifically excluded, the Act of 1917 using the term"contract labor" to include anyone "induced, assisted, encouraged, orsolicited" to come to this country "by any kind of promise oragreement, express or implied, true or false, to find employment. "Persons over sixteen years of age are excluded from the United Statesif they cannot read English or some other language. [Footnote: Certainnear relatives of admissible aliens, purely political offenders, andpersons seeking refuge from religious persecution, are exempted fromthis literacy test, however. ] The bars against Asiatics call for a special word. 224. ASIATIC IMMIGRATION. --By Asiatic immigration is here meantChinese and Japanese immigration, immigrants from other parts of Asiabeing relatively unimportant. The discovery of gold in California in 1849 caused a large number ofChinese coolies to migrate to this country. This immigration grewsteadily until 1882, in which year the entrance of Chinese laborersinto the United States was forbidden. Our exclusion policy has beenrepeatedly reaffirmed, as the result of which there are to-day fewerthan 70, 000 Chinese in this country. The majority of these are foundon the Pacific Coast, engaged as small tradesmen, truck farmers, orpersonal servants. Japanese immigration to this country did not become noticeable untilabout 1900. After that date, however, the volume of Japaneseimmigration so alarmed the Pacific Coast states that a Japaneseexclusion policy was formulated as early as 1907. At present the onlyclasses of Japanese that are allowed to reside in this countrypermanently are "former residents, " "parents, wives or children ofresidents, " or "settled agriculturists, " the latter being Japanesealready in possession of land here. There are at present fewer than120, 000 Japanese in this country. Most of them are found on thePacific Coast, engaged in occupations similar to those of the Chinesein the same area. [Footnote: Chinese and Japanese students desiring tostudy in this country are allowed to enter the United States byspecial arrangement. ] Those most familiar with the situation are practically unanimous indeclaring for the continued exclusion of Chinese and Japaneseimmigrants. In the case of both races, the standard of living is somuch lower than that of native Americans that open competition betweenthe newly arrived Asiatic and the native American would result in thelatter being driven from the labor market. The most important socialreason for the exclusion of these two races is that the differences ofrace and religion existing between Asiatics and native Americansrender assimilation of the Chinese and Japanese extremely difficult, if not impossible. 225. THE FUTURE OF IMMIGRATION. --A half century ago the belief wascurrent that an immigration policy was unnecessary, since the sourcesof immigration would eventually dry up. The sources of the "old"immigration have dried up somewhat, but new sources have been openedup in southern and southeastern Europe. Immigration is a pressingsocial problem, and it is likely that it will be even more pressing inthe future. The American frontier has disappeared and our boundariesare fixed. Urbanization is proceeding at a rapid rate, industry isbecoming more complex, public opinion is more insistent that suchsocial problems as immigration shall be solved. 226. WHAT SHALL BE OUR ATTITUDE TOWARD IMMIGRATION?--There is no goodreason why immigration should be absolutely prohibited. On the otherhand, the most public-spirited students of the question believe thatthe careful restriction of immigration is imperative. Clearly, it isour duty to accept only such immigrants as show promise of becomingcapable and efficient American citizens. It is also clearly our dutyto accept even this type of immigrant only in such numbers as we canconveniently assimilate. We must not be selfish with America, but weshould not be misled by the statement that anyone in Europe has a"right" to make his home in this country. Those who come to thiscountry are personally benefited, no doubt, but unrestrictedimmigration may lower the tone of American life and permanently injureour social and political institutions. America is for the presentgeneration, but is also for posterity. The millions of unborn have asmuch right to be considered as have the millions now clamoring at ourgates. For this reason, the "right" of an individual to migrate toAmerica must be interpreted in the light of what he will mean to thefuture of this country. 227. HELPING THE IMMIGRANT IN HIS NEW HOME. --The readjustment, assimilation, or "Americanization" of the immigrant is a problem ofvital importance. The term "Americanization" is variously interpreted, and must be used with care. Americanization ought not to force theimmigrant to give up his native tongue, or his old-country customs. Itought to be a mutually helpful process, whereby native Americans wouldhelp the immigrant in adjusting himself to his new environment, while, in turn, the immigrant would be permitted and encouraged to make hisown contribution to American life. Since the immigrant has little orno opportunity to contribute to American life until he has becomeadjusted to his new home, it follows that the most fundamental part ofan Americanization program is one of helping the immigrant solve hisproblems. In carrying out this part of the Americanization program it isessential that the newly arrived alien be protected againstunscrupulous persons who seek to exploit him. Adequate laws ought tobe supplemented by the work of immigrant aid societies and otherprivate organizations whose duty it would be to protect immigrantsagainst dishonest boarding houses, swindlers, unreliable banks, andother forms of imposition. Friendly help of this type will do muchtoward encouraging and inspiring the alien in his new life. Improvement in the immigrant's economic status is an important part ofan Americanization program. Not only does the undue concentration ofimmigrants in cities spell ill-health and a great temptation to crimeand vice, but immigrant laborers sometimes secure lower wages incities than they would receive in the more sparsely settled parts ofthe country. Of considerable interest, therefore, is the recentdevelopment of plans for redistributing immigrants into the rural andsparsely populated districts. [Footnote: The movement to transferimmigrants to the rural districts is not unqualifiedly good; indeed, it may do more harm than good. For the dangers of this movement, seeChapter XXV. ] Since 1907 the Division of Information in the Bureau ofLabor Statistics has done valuable work in finding employment forimmigrants in rural districts. Much remains to be done, however. The school, of course, is an important agent of Americanization. Whether or not the immigrant retains his old-country language, heought to learn to speak, read and write English. The school islikewise an important means of instructing the newcomers and theirchildren in the essentials of American history and government. Wherethe school is being used as a real community center, the institutionbecomes truly a method of introducing the foreign-born to the everydayactivities of American life. The increasing emphasis upon the racialtraits of different immigrant groups, with a view to encouragingunique contributions to the culture of the community, deserves specialnotice. Americanization measures of the type touched upon in this section helpto build the nation on a sound foundation of friendly and intelligentcoöperation. QUESTIONS ON THE TEXT 1. What proportion of our population is foreign-born? What proportionis native? 2. Distinguish between the "old" and the "new" immigration. 3. Describe the increasing volume of immigration. 4. Outline the distribution of immigrants in this country. 5. What are the economic effects of immigration? 6. Explain the relation of immigration to the wages and standard ofliving of American workmen. 7. What are the social effects of immigration? 8. What factors impede the assimilation of the "new" immigrants? 9. What classes of aliens are excluded from this country? What is"contract labor"? 10. What is the nature of Asiatic immigration? Why are Asiaticsexcluded? 11. Does it seem likely that the immigration problem will be more orless acute in the future? Why? 12. What should be our attitude toward immigration? 13. What is the chief aim of a good Americanization program? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xx. Or all of the following: 2. _Annals_ of the American Academy of Political and Social Science, vol. Xciii, pages 134-138, 156-161. 3. Burch and Patterson, _American Social Problems_, chapters ix and x. 4. Ellwood, _Sociology and Modern Social Problems_, chapter x. 5. Roberts, _The Problem of Americanization_, chapters iii and iv. QUESTIONS ON THE REQUIRED READINGS 1. Define a foreigner. (_Annals_, page 135. ) 2. What is Professor Walker's theory of immigration? (Burch andPatterson, pages 95-96. ) 3. Compare the "old" and the "new" immigration in 1882. (Ellwood, page217. ) 4. Compare the "old" and the "new" immigration in 1907. (Ellwood, page218. ) 5. What are the three most important groups of immigrants at thepresent time? (Burch and Patterson, pages 108-111. ) 6. What is the extent of illiteracy among the immigrant population?(Burch and Patterson, pages 115-116. ) 7. Discuss the occupational distribution of immigrants. (Ellwood, pages 223-224. ) 8. What is the "racial" argument against unrestricted immigration?(Ellwood, pages 234-235. ) 9. How can the average citizen help in the Americanization movement?(Roberts, pages 45-47. ) 10. Why should the Americanization worker make himself familiar withthe condition under which the immigrant works? (Roberts, pages 48-53. ) 11. What is the significance of the club life of immigrant groups?(Roberts, pages 57-61. ) 12. What is the importance of the "advisory council" inAmericanization work? (Roberts, pages 86-87. ) TOPICS FOR INVESTIGATION AND REPORT 1. Classify the residents of your community according as they are (a)Foreign born (b) Native-born children of foreign-born parents, or (c)Natives. 2. Study your community with the aim of determining whether or not thecharacter of its immigrant class has changed within the last twenty-five years. 3. Classify the immigrant groups of your community on the basis ofoccupation. Notice in particular the proportion of immigrants engagedin agriculture and in the trained professions. 4. Make a visit to a near-by foreign colony, and report to the classupon your observations. 5. Interview the officials of a trade union on the effect ofUnrestricted immigration upon wages. 6. Draw up a workable plan for the redistribution of immigrants inyour state. 7. Draw up a plan for an Americanization survey in your state. (Writeto the Bureau of Education in the U. S. Department of the Interior, for Bulletin, 1919, No. 77, on State Americanization. ) 8. Race elements in the population of the American colonies. (Commons, _Races and Immigrants in America_, chapter ii. ) 9. History of immigration to the United States. (Any standard text onimmigration. ) 10. The journey to America. (Abbot, _The Immigrant and the Community_, chapter i; Steiner, _On the trail of the Immigrant_; Antin, _They WhoKnock at Our Gates_. See also Miss Antin's _The Promised Land_. ) 11. Assisted immigration. (R. Mayo Smith, _Emigration andImmigration_, chapter ix. ) 12. Geographical distribution of immigration. (Semple, _AmericanHistory and its Geographic Conditions_, chapter xv. ) 13. Economic aspects of immigration. (Consult any standard text onimmigration. ) 14. "Birds of passage. " (Consult any standard text on immigration. ) 15. Immigration and the trade unions. (Carlton, _History and Problemsof Organized Labor_, chapter xi. See also any standard text onimmigration. ) 16. Social aspects of immigration. (Consult any standard text onimmigration. ) 17. Political aspects of immigration. (Consult any standard text onimmigration. ) 18. Chinese immigration. (Coolidge, _Chinese Immigration_; Hall, _Immigration_, chapter xv; Jenks and Lauck, _The Immigration Problem_, pages 231-237; _Annals_, vol. Xciii, pages 7-13; Gulick, _AmericanDemocracy and Asiatic Citizenship_. ) 19. Japanese immigration. (_Annals_, vol. Xciii, part i; Jenks andLauck, _The Immigration Problem_, pages 241-252; Steiner, _TheJapanese Invasion_; Gulick, _American Democracy and AsiaticCitizenship_. ) 20. Americanization. (_Annals_, vol. Xciii, part in; Woods, _Americansin Process_; Steiner, _From Alien to Citizen_; Bogardus, _Essentialsof Americanization_; Roberts, _The Problem of Americanization_) FOR CLASSROOM DISCUSSION 21. Is assisted immigration an evil? 22. Can immigrants be redistributed effectively by governmentalagencies? 23. Should we retain the literacy test as part of our immigrationpolicy? 24. At the present time many aliens journey across the Atlantic onlyto find that, for various reasons, they cannot be admitted to thiscountry. How might the resulting disappointment and loss of time andmoney be avoided? CHAPTER XXI CRIME AND CORRECTION 228. THE NATURE OF CRIME. --A crime is an act which is punishable bylaw because it is considered injurious to the community. If theaverage man were a hermit, living entirely alone, his actions wouldaffect only himself, and he would be subjected to little or no controlby any community. But the average man is a member of a highlycivilized community, and what he does, or what he fails to do, oftenprofoundly affects other individuals. Members of the communitytherefore agree upon standards of conduct, to which individuals mustconform. [Footnote: Where democracy does not exist, or is onlypartially developed, laws may be imposed upon the group from without. In such a country as the United States, however, legal standards ofconduct are preeminently the result of mutual agreements, freelyentered into. ] It is the failure to conform to these standards whichconstitutes a crime, and which entails punishment by law. What constitutes a crime depends, of course, upon the level ofcivilization reached by a community, and upon the interpretation whichit places upon right conduct. A deed considered heroic in one age maybe considered a crime in a later century. In the days of chivalry, forexample, it was sometimes considered heroic to rob or even kill wickednobles in order to distribute their wealth to the poor. At the presenttime, of course, such acts would constitute a crime. 229. THE CAUSES OF CRIME. --The causes of crime are so various and socomplex that their accurate classification is impossible. But somelight may be thrown upon the subject if we think of crime asinfluenced by economic, social, personal, and political factors. Looking at crime from an economic point of view, it is obvious thatpoverty often accompanies crime. In many cases, it is claimed, suchcrimes as larceny, forgery, and robbery are directly traceable topoverty. Similarly, it is said that unemployment and industrialaccidents may incite individuals to crime. Many authorities claim, however, that while bad economic conditions accompany and oftenencourage crime, such conditions alone are not a direct cause ofcrime. According to this latter view, poverty, for example, will notcause a person to commit a crime unless he is feeble-minded, depravedin morals, or otherwise defective in character. While there is a good deal of dispute as to whether or not poverty isa direct cause of crime, it is quite generally agreed that a badeconomic situation gives rise to social conditions which can bedefinitely connected with criminality. The strain and artificiality ofurban life, together with the difficulty of obtaining inexpensive andwholesome recreation in the poorer sections of large cities, has aclose connection with crime. The overcrowding so common in tenementdistricts renders difficult or impossible the maintenance of highmoral standards. Where mother or children are habitually employedoutside the home, the young are often denied proper home training. Divorce, desertion, or the death of the bread-winner may break up thefamily and indirectly give rise to illiteracy, vice, and crime. Often indistinguishable from the social causes are the personal causesof crime. Where alcoholism or vicious habits are given as the cause ofcrime, it may be impossible to say whether social or personal defectis primarily to blame. Illiteracy, superficially a _personal_ cause ofcrime, may often be traced to a bad _social_ environment. Thus anindividual may be illiterate because his parents were unwilling orunable to send him to school, or because evil companions discouragedhim from study. Such personal causes as mental defect are extremelyimportant, indeed, many students maintain that bad economic and socialconditions are negligible causes of crime, unless found in connectionwith low mentality and a depraved moral sense. Last among the causes of crime we may consider defects in government. The laws of a community may be so numerous, or so unwisely worded, that even responsible individuals violate them without understandingthe nature of their act. After children have committed petty offensesthrough carelessness or a sense of mischief, the harshness of thepolice may so embitter or antagonize the culprits that their criminaltendencies are intensified. An important cause of crime is the custom, still common in many states, of imprisoning young and first offendersin county jails, where they are allowed to mingle with, and learnabout crime from, hardened and depraved criminals. 230. THE REMEDIES FOR CRIME. --The causes of crime suggest the natureof its remedies. Wherever bad economic conditions either directly orindirectly encourage crime, the remedy is, of course, the relief orabolition of poverty. This problem has already been discussed. Since bad social conditions are often the result of poverty, anymeasures which will lessen poverty will also remove many of the so-called social causes of crime. Education, the safeguarding of thehome, constructive charity, and similar measures will also help toremove the social causes of crime. These questions are discussedelsewhere in this text, and need not be gone into here. The improvement of economic and social conditions will ultimately helpto eliminate bad heredity, vice, and other of the personal causes ofcrime. With the understanding, then, that the eradication of the economic, social and personal causes of crime is discussed elsewhere, we mayhere confine ourselves to the question of preventing crime byremedying the defects of government. 231. JUSTICE AS AN IDEAL. --Justice has constituted one of the basicideals of the English-speaking peoples since the days of Magna Charta. "To no one will we sell, and to no one will we refuse or delay, rightor justice, " declared that great document. This conception was laterglorified into an ideal which, after having persisted for fourcenturies in England, was brought to the New World by the Englishcolonists. The first ten amendments to the Federal Constitution andthe Bill of Rights contained in the constitutions of the severalstates have been called by Lord Bryce "the legitimate children ofMagna Charta. " Since the beginning of our history, thus, a greatcornerstone of American democracy has been the concept of sound andequitable law, impartially and effectively administered. 232. THE DENIAL OF JUSTICE. --Within the last decade we have come torealize that in many of the criminal courts of this country justice isan ideal rather than a fact. "The administration of criminal law inall the states of this Union, " said Chief Justice Taft a few yearsago, "is a disgrace to civilization. " Our criminal law is administered unjustly in two ways. First, it sometimes allows the rich, the cunning, and the powerfuloffenders to escape the penalty for their crimes. In many states thecourt dockets are so crowded that influential offenders are notconvicted for years, if at all. Rich prisoners may be released onbail, and consideration of their case so delayed that the evidencedisappears. Public interest is diverted to new cases, and eventuallythe case may be quietly dismissed. Mr. Taft points out that we leadthe world in the number of serious crimes which go unpunished. Appealsare allowed almost as a matter of course, so that in many seriouscriminal trials the original verdict is only the beginning of thecase. Second, the law which often allows the powerful and crafty to avoidpunishment may operate to deny justice to the poor. Ignorant prisonersare in many cases so bewildered by cumbersome and technical courtprocedure that they allow their cases to be disposed of withoutadequate protection of their rights. Often they have no one to advisethem as to their constitutional rights and privileges. If they are notonly ignorant but poor, they find themselves unable to employ propercounsel. The Constitution indeed recognizes the right of an accusedperson to have counsel, but in many states if a man is too poor or tooignorant to secure a lawyer, he is obliged to stand trial withoutanyone to represent or advise him. In some states, the court appointsa lawyer to represent such defendants. Sometimes the assigned counselis dishonest, and too often his primary object is to get a fee ratherthan to secure justice for his client. Generally the counsel soappointed is inexperienced, and consequently no match for an able andexperienced prosecuting attorney, whose reputation may depend upon thenumber of convictions that he secures. 233. THE REFORM OF CRIMINAL PROCEDURE. --The reform of criminalprocedure is assuming great importance as a problem of Americandemocracy. In many states there is a demand for a wider and moreenergetic use of the Bertillon and finger print systems for theidentification of criminals. Because of the fact that in our largecities a heavy percentage of crimes are committed without thesubsequent arrest of the culprit, there is a growing demand for theimprovement of our police systems. Our criminal law needs to besimplified, so that justice may not be delayed by technicalities, longarguments on the admissibility of evidence, and the abuse of the rightof appeal. Probably a good many of the delays and technicalities oflegal procedure could be avoided if at the trial the judge were toexercise a greater amount of control over the proceedings. The reform of criminal procedure has a double aim. First, it aims toreorganize and perfect criminal procedure so that persons who havecommitted an offense will be apprehended and always made to pay thepenalty for their crimes. Toward the achievement of this ideal we haveas yet done very little. We are still woefully behind such a countryas England, where justice is administered with relative rapidity andsureness. Second, the reform of criminal procedure aims to prevent thelaw from bearing with undue weight upon the poor and ignorant. Here weare making greater progress. Let us notice what is being done toguarantee justice to persons who are unable adequately to safeguardtheir own legal rights. 234. THE LEGAL AID SOCIETY. --A valuable institution is the legal aidsociety, which originated in New York City in 1876, and which hassince spread to other parts of the country. Of the forty legal aidsocieties now in existence in this country, some of the better knownare located in New York City, Los Angeles, Kansas City, Boston, andChicago. The legal aid society is generally a private organization, created and maintained by public-spirited citizens who believe thatthe poor and ignorant ought to be given legal advice free of charge, or upon the payment of a nominal fee. These societies extend advice onboth civil and criminal matters. The legal aid society helpsmaterially to secure justice by acquainting the individual with hislegal rights, and by acting as his counsel in court. Suchorganizations are especially valuable in safeguarding the rights andprivileges of immigrants in large cities. The total number of personshelped annually by legal aid societies in the United States is over100, 000. 235. THE PUBLIC DEFENDER. --The Public Defender movement is anoutgrowth of the feeling that it is unfair for the court to assign aninexperienced and sometimes unreliable lawyer to defend a pennilessprisoner, while the case is prosecuted by a skilful district attorney. In spite of the presumption that the prisoner is innocent until he isproved guilty, such practices as this have operated as though theprisoner were presumed to be guilty. In 1912 Oklahoma attempted to remedy this evil by appointing a PublicDefender whose duty it should be to aid in the defense of personsunable to employ counsel. The next year the city of Los Angelesappointed a Public Defender who, as a sworn public counsel ofexperience and integrity, makes it his business to defend poorprisoners without charge. A few years later, Portland, Oregon, andOmaha, Nebraska, appointed similar officers. Since 1916 many othercities, and a few states, have provided for a Public Defender of somekind, although in many cases the provision is as yet inadequate. Inall cities in which the plan has been given a trial, the PublicDefender has been instrumental in securing justice for the poor, andin raising the moral tone of the criminal trial. By eliminating muchunnecessary delay from the criminal trial, the Public Defender hasalso helped to reduce court expenses. 236. CHANGING IDEALS IN PENOLOGY. --In the early stages of society thespirit of revenge seems to have been a chief motive in the punishmentof criminals, although the desire to prevent crime must also have beena factor. With the progress of civilization revenge declined inimportance, and the punishment of the criminal seems to have beenundertaken chiefly for the purpose of preventing future crimes. Longperiods of imprisonment, inhuman punishments, and the frequent use ofthe death penalty were characteristic of this attitude toward crime. Curiously enough, punishments were imposed according to theseriousness of the crime committed, without regard to the characterand needs of the criminal. Of recent years the theory of punishment has been still furthermodified. In the first place, we have begun to doubt if punishmentalways serves a useful purpose. Punishment does not always detercriminals, and for this reason it is likely that the death penalty andother cruel and inhuman methods of punishment may be dispensed with, without a resultant increase in the amount of crime. In the secondplace, punishment has taken on a new aim. More and more we are comingto believe that it should be imposed, not according to the seriousnessof the crime committed, but according as the individual criminal needsto be punished in order to effect his reformation. This new attitudeis based upon the assumption that the criminal is a person who is notadapted to the conditions of modern life, and that the chief aim ofthe authorities should be so to reform him that he will become auseful member of society. In case reform seems impossible, thecriminal should be segregated in an institution. 237. INDIVIDUALIZED TREATMENT OF OFFENDERS. --The emphasis now placedupon reformation has made necessary a new point of view on the part ofthe public. We are beginning to make use of a mass of data furnishedby physiology, psychology, and sociology, and on the basis of thesedata to subject prisoners to individualized treatment. Instead ofherding all offenders into a single institution such as the countyjail or the penitentiary, we are beginning to inquire, first of all, whether the prisoner might not be treated most effectively outsideprison walls. For those offenders who seem to require institutionaltreatment, we are developing a whole series of institutions, designedto care for special types of abnormality. Industrial and farm coloniesfor petty offenders and occasional criminals, hospitals and coloniesfor the mentally defective, industrial schools and reformatories forcertain types of juvenile offenders, and penitentiaries for hardenedoffenders, all these are included in the correctional system of themore progressive states. 238. SUBSTITUTES FOR IMPRISONMENT. --The belief is growing that youngoffenders, first offenders, and those committing petty crimes, mayoften be corrected without actual imprisonment. Increasingly common isthe probation system, the essence of which is to suspend the sentenceof the court upon certain conditions. The offender is placed in chargeof a court officer who will stand in the relation of friend andguardian to him, in order to supervise his conduct and to attempt hisreformation. The success of the probation system depends largely uponthe care and judgment with which probation officers control theircharges. The use of the fine deserves mention. Generally the sentence for apetty offense is a fine, with imprisonment as an alternative in casethe prisoner is unable to pay the fine. Realizing the corruptinginfluence of the jail sentence for first or slight offenders, courtofficials in many cities are making the payment of the fine lessdifficult. In Buffalo, Indianapolis, Chicago, and other cities it iscustomary in some cases to allow the payment of a fine in instalments. This ultimately secures the fine; it has a disciplinary effect uponthe offender; and it keeps him out of jail. 239. MENTAL DEFECTIVES. --Recent progress in medicine and psychologyhas demonstrated that many criminals are mentally defective. Suchpersons are not fully responsible for their acts, and nothing is to begained by committing them to prison. They need special treatment ininstitutions for the insane, the feeble-minded, and the otherwisedefective. In recognition of this fact, the criminal courts of ourlarger cities now make extensive use of psychopathic experts. It isthe duty of these experts to determine the mental status of theprisoner, and, in case he is found to be mentally defective, torecommend the type of treatment needed. This is an admirable development, provided care is taken to preventthe abuse of the insanity plea by influential criminals who, thoughnormal mentally, seek to evade responsibility for their deliberatecrimes. 240. THE JUVENILE OFFENDER. --It has been proved that a largepercentage of hardened criminals begin their careers by some carelessor mischievous act for which they were severely or unwisely punished. Formerly, juvenile offenders were treated much as were adultcriminals; more recently we are coming to believe that children oughtnot to be committed to penal institutions, but rather should be put onprobation, or sent to correctional institutions of a special type. Wherever possible, institutional treatment of every kind ought to beavoided, for the crimes of children are clearly in a different classfrom those of the adult. In New York City a few years ago, forexample, half the children brought into court were there because ofthe lack of recreation facilities. Petty theft and malicious mischiefare often traceable to bad home influences and the unnaturalsurroundings of the city. These circumstances, coupled with the factthat immature children are often unaware of the seriousness of theirlawless acts, justify the special treatment of the juvenile offender. 241. THE JUVENILE COURT. --The juvenile court has been created to meetthe special needs of the youthful offender. An early institution ofthis kind was established in Chicago in 1889. Shortly afterward Denverestablished a juvenile court, and since then many other cities havetaken up the idea. In some states county judges are authorized tosuspend the ordinary rules of procedure where the defendant is undereighteen years of age. A typical juvenile court provides separate judges and separatehearings for youthful prisoners. It avoids publicity, investigates thehome life of the youthful offender, and attempts by kindly treatmentto guide him back into a wholesome, honest life. In some casesdelinquent children are sent back to school, in other cases they areplaced on probation, in still other cases special institutionaltreatment is provided. Every effort is made to keep juvenile offendersfrom associating with habitual criminals. The aim of the court is notto punish the offender for a particular offense, but to weigh all thecircumstances which have influenced his life, and to correct his wrongtendencies. Work of this type is preventive in the fullest sense ofthe word. 242. THE INDETERMINATE SENTENCE. --The realization that punishmentought to fit the criminal rather than the crime has led to theindeterminate sentence. Though not yet widely applied, this reform isattracting more and more attention. A logical application of theindeterminate sentence would require prisoners to be committed toprison, not for a specific term, but for an indefinite period. Theactual length of the prison term would depend upon the prison recordof the individual, and upon the promise that he showed of becoming auseful and normal citizen if released. According to this plan, occasional criminals, and persons enticed or forced into wrong-doing, would be entitled to release (regardless of the character of thecrime) as soon as it became apparent that they would not repeat theoffense. Hardened criminals, on the other hand, might remain in prisonpermanently, even though committed for a trifling offense. Certainlywe ought not to continue to commit and to re-commit hardened criminalsfor short terms, when their past conduct proves that they have neitherthe intention nor the ability to make proper use of their freedom. 243. THE FUNCTION OF THE MODERN PRISON. --In addition to the principleof the indeterminate sentence, modern penology has approved a wholeseries of supplementary measures. The ideal prison of to-day is not agloomy dungeon, but a great plant which attempts to turn criminalsinto useful citizens through the use of the school, the chapel, theworkshop, the gymnasium, the library, and even the theatre. Discipline, the fundamental weakness of offenders against the law, isa cornerstone of prison life. More and more prisons are adopting themerit system, according to which prisoners are graded and promoted toadditional privileges on the basis of behavior. In many prisons theseprivileges may include an "honor system" and "inmate self-government. "The prison attempts to supply the deficiencies in the convict's earlytraining. Prisoners are taught to take care of their bodies. They aretaught useful trades, according to their abilities. If illiterate theymay go to the prison school. Religious exercises and moral instructionare employed to develop a sense of moral values. When consistent good behavior and earnest endeavor in prison dutiesindicate that the prisoner is entitled to another chance in theoutside world, he may be paroled, that is to say, he may be releasedon certain conditions. Generally prisoners are not paroled until someperson is found who will guarantee them employment. In many states thework of the parole board is ably supplemented by unofficial prisoners'aid societies which help the released man to readjust himself to afree life. After a certain period of satisfactory conduct on parolethe prisoner is entitled to a full and unconditional discharge. Thewhole aim of the parole system is to supervise the actions of theprisoner, without adding to his irritation or humiliation, but withsufficient strictness to guard him against temptation and to replacehim in prison if he proves unworthy of the trust bestowed upon him. QUESTIONS ON THE TEXT 1. What is a crime? 2. In what way may bad economic conditions be connected with crime? 3. What are the social causes of crime? What are the personal causes? 4. In what way are defects of government related to crime? 5. Summarize the remedies for crime. 6. Trace the influence of Magna Charta upon our ideal of justice. 7. How does the administration of our criminal law often result ininjustice? 8. Why is it necessary to reform our criminal procedure? 9. What is the nature and function of the legal aid society? 10. What is a Public Defender? How does he help secure justice? 11. Trace the development of the theory of punishment. 12. What is the purpose of the "individualized treatment ofoffenders"? 13. What is the function of a probation system? 14. How should mentally defective criminals be treated? 15. Describe the work of the Juvenile Court. 16. Outline the purpose of the indeterminate sentence. 17. What are the chief functions of a modern prison? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxi. Or all of the following: 2. Guitteau, _Government and Politics in the United States_, chapterxiii. 3. Lewis, _The Offender_, part iii, chapter i. 4. Smith, _Justice and the Poor_, pages 105-127. 5. Wines, _Punishment and Reformation_, chapter ii. QUESTIONS ON THE REQUIRED READINGS 1. Distinguish between crime, vice and sin. (Wines, page 11. ) 2. Define criminal law. (Wines, page 12. ) 3. What is the distinction between public and private wrongs?(Guitteau, pages 140-141. ) 4. What are the first steps in a criminal action? (Guitteau, pages142-143. ) 5. What is an indictment? (Guitteau, page 143. ) 6. Outline the steps in a criminal trial. (Guitteau, pages 144-146. ) 7. What is a sumptuary law? (Wines, page 7. ) 8. What are the eight distinct protections afforded by our criminallaw? (Smith, page 108. ) 9. What is the great defect of these protections? (Smith, page 111. ) 10. What can be said as to the future development of the PublicDefender movement? (Smith, page 127. ) 11. Is the average age of offenders declining or increasing? (Lewis, page 254. ) 12. What is the relation of the school to crime? (Lewis, pages 262-270. ) 13. What is the relation of recreational facilities to crime? (Lewis, pages 276-285. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a classification of the criminal courts of your state. 2. The use of psychopathic experts in the criminal courts of yourstate. 3. Make a study of a near-by county jail. (Compare data gathered withQueen, _The Passing of the County Jail_. ) 4. The legal aid bureau in your state. 5. The parole system in your state. 6. Classify the correctional institutions in your state. What types ofoffenders are sent to each? 7. Interview, or write to, a prison official in your state regardingthe practicability of the indeterminate sentence. II 8. Criminal law procedure in England. (_Annals_, vol. Lii, pages 200-207; Kaye, _Readings in Civil Government_, pages 328-335. ) 9. Criminal law procedure in the United States. (Beard, _AmericanGovernment and Politics_, pages 568-577. ) 10. Defects in the enforcement of the law. (Reinsch, _Readings onAmerican State Government_, pages 173-181. ) 11. The courts and the criminal. (Osborne, _Society and Prisons_, chapter ii; Lewis, _The Offender_, part i, chapter iii. ) 12. Reform of criminal procedure in the United States. (_Annals_, vol. Lii, pages 102-107. ) 13. The county jail. (Queen, _The Passing of the County Jail_. ) 14. Crime prevention from the standpoint of the police. (Woods, _CrimePrevention_; Lewis, _The Offender_, part ii, chapter ii; _Annals_, vol. Lii, pages 56-60. ) 15. Overcrowding in its relation to crime. (Riis, _The Battle with theSlum_; Addams, _The Spirit of Youth and the City Streets_. ) 16. Juvenile crime. (Mangold, _Problems of Child Welfare_, Part V. ) 17. The Junior Republic. (George, _The Junior Republic_. ) 18. The work of Judge Ben Lindsay of Denver. (Consult anencyclopedia. ) 19. The legal aid society. (Smith, _Justice and the Poor_, part iii. ) 20. The Public Defender. (Smith, _Justice and the Poor_, pages 105-130. ) 21. Probation and parole. (Lewis, _The Offender_, part i, chapter v. ) 22. The Jukes. (Dugdale, _The Jukes_. ) 23. The Kallikak family. (Goddard, _The Kallikak Family_. ) 24. The criminal theories of Lombroso. (Consult an encyclopedia. ) 25. Modern prison systems. (Henderson, _Modern Prison Systems_. Individual students may be assigned to the study of the prison systemsof particular countries. ) 26. Industrial training in prison. (Lewis, _The Offender_, part i, chapters x and xii; _Annals_, vol. Xlvi. ) 27. The discharged convict. (Booth, _After Prison, What_?) FOR CLASSROOM DISCUSSION 28. Is crime increasing in the United States? 29. The practicability of the indeterminate sentence. 30. Should capital punishment be abolished? 31. Advantages and disadvantages of the "honor system" in prison. CHAPTER XXII THE NEGRO 244. ORIGIN OF THE AMERICAN NEGRO. --Early in the seventeenth centurythe scarcity of labor in the American colonies led to the introductionof African Negroes as slaves. In response to the demand for slavelabor on the southern plantations, the importation of Negroesincreased steadily during the next century. The slave trade wasnominally abolished in 1808, but Negroes continued to be brought inuntil the Civil War period. In September, 1862, President Lincolnproclaimed abolished both the slave trade and the institution ofslavery in the United States. The legality of this act wassubstantiated in 1865 by the Thirteenth Amendment to the FederalConstitution. 245. RISE OF THE NEGRO PROBLEM. --The Emancipation Proclamation, followed by the Thirteenth Amendment, conferred freedom upon fourmillion slaves. In 1868 the Fourteenth Amendment made the freedNegroes citizens of the United States, and in 1870 the FifteenthAmendment enfranchised them. Largely as the result of these measures, the problem of the slave developed into the present Negro problem. Theracial differences between the white and the Negro, as well as thedemoralizing effects of slavery, promised to render difficult theadjustment of the Negro to American life. The situation was made moreserious by the suddenness of emancipation, and by the fact that thevote was extended the Negroes before most of them were ready for it. The economic, social, and political upheaval effected in the South bythe war, together with the bitterness with which many southern whitemen regarded the newly freed Negroes, also contributed to thedifficulty of the situation. Lastly, the Negro became a problembecause of the lack of a national program in his behalf. 246. NUMBERS AND DISTRIBUTION. --In 1920 the Federal census gave10, 463, 131 as the Negro population of the United States. According tothese figures the Negro constitutes slightly less than one tenth ofour total population. Eighty-five per cent of the Negroes live in theSouth. In Mississippi and South Carolina the Negro exceeds the whitepopulation, while in several other southern states the Negroconstitutes from one fourth to one half of the total population. About three fourths of our Negroes live in the rural districts. Thereis, however, an important migratory movement which operates todecrease this percentage. There is a growing tendency for southernNegroes to leave the rural districts and to move cityward. Chieflybecause of the economic attractions of urban life, many rural Negroesare moving toward the southern city; in search of social equality aswell as greater economic opportunities, many southern Negroes aremigrating to the cities of the North. 247. ADAPTABILITY OF THE NEGRO. --From one important angle, civilization is the process of getting along with one's environment, partly by changing that environment, and partly by adapting one's selfto external conditions. An important characteristic of the Negro, notusually taken into account, is his adaptability. Ours is predominantlya white man's civilization, and we are accustomed to think of theNegro as an individual who finds it more or less difficult to fit intoour way of living. And yet one reason for believing that the Negro hasa capacity for modern civilization is that he has survived until thepresent time. Compare the Negro in this regard with the AmericanIndian, who, despite his many noble traits, has fared poorly under thewhite man's civilization. The Indians of Cuba, for example, were soproud and unbending that they died out under the slavery which theearly Spanish imposed upon them; the Negro, because of histeachableness and his passive strength, not only survived slavery, buthas weathered freedom under very disadvantageous circumstances. 248. PROGRESS SINCE THE CIVIL WAR. --The Negro has made considerableprogress since the Civil War. Many Negroes have become independentfarmers and artisans, owning a considerable amount of property. Despite the backwardness of Negro schools, great progress has beenmade in the matter of decreasing Negro illiteracy. Whereas at theclose of the Civil War some ninety per cent of the Negroes wereilliterate, less than a third of our present Negro population isilliterate. In art, literature and science the Negro has already madea tolerable showing. Altogether it is likely that an able andconstructive leadership is being developed among the Negroes. 249. PRESENT ECONOMIC CONDITION. --In spite of the substantial progressmade since the Civil War, however, the present economic condition ofthe Negro is unsatisfactory. The great majority of Negroes areunskilled laborers of a shiftless disposition. Because he isfrequently neither a dependable nor an efficient worker, the averageNegro tends to receive low wages. The Negro is not skilled inmanufacturing or mechanical lines, and he is kept out of the highertrades and professions by reason of illiteracy and social barriers. Very often the southern Negro is a tenant farmer, carelessly tilling asmall plot of land and mortgaging his crop in order to secure the barenecessities of life. Large families, inadequately supported, andreared under insanitary living conditions, are characteristic of thesouthern Negro. The failure to save money, and the inability toprotect themselves against exploitation by unscrupulous white men, arecharacteristic weaknesses of many Negroes. 250. PRESENT SOCIAL CONDITION. --Though decreasing steadily, Negroilliteracy is still high. This is a serious evil. Not only doesilliteracy bar the Negro from the education and training of which heis in such great need, but it allows unscrupulous persons to swindleand exploit him. The Negro furnishes an abnormally large proportion ofour prison population. Whether or not this is partly the result ofracial characteristics, it is certain that the bad economic and socialconditions surrounding Negro life lead to a high degree ofcriminality. In justice to the Negro it should be noted that in manycommunities he is apprehended and convicted more often than is thewhite culprit. Acts which would go unpunished or even unnoticed ifcommitted by white men often arouse the community and lead to severepunishment when committed by Negroes. Statistics on Negro crime arealso influenced by the fact that the poverty of the Negro often causeshim to go to jail while the white offender escapes with a fine. A serious evil is race mixture between Negroes and whites. This hasgone on since colonial times, until at the present time probably morethan half of the Negroes in the United States have some degree ofwhite blood. Such mixtures, while probably not disastrous from thestandpoint of biology, have unfortunate consequences socially. Generally the mulatto offspring are forced to remain members of theNegro group, where they are subjected to social surroundings which toooften encourage disease, vice, and degeneracy. The majority of thestates now have laws forbidding marriage between Negroes and whites. Both white and Negro leaders agree that race mixture ought to bestopped. 251. PRESENT POLITICAL CONDITION. --The Fifteenth Amendment declaredthat "the right of citizens of the United States to vote shall not bedenied or abridged by the United States or by any State on account ofrace, color, or previous condition of servitude. " Yet in many southernstates the Negro is barred from the polls. In many northern citieswhere the Negro is allowed the ballot, his ignorance andirresponsibility make him the prey of political "bosses" who controlhis vote. The question of Negro suffrage will be treated later;[Footnote: See Chapter XXXIII. ] here we may content ourselves withnoting that the Negro's right to vote is often restricted. In theSouth, at least, it is also true that the Negro has but little shareeither in making the laws or in administering them. 252. URGENT NATURE OF THE NEGRO PROBLEM. --The Negro problem was neverof more pressing importance than it is to-day. Illiteracy is stillperilously high, Negro crime is becoming more serious, and thecityward tendency of the Negro is increasing his susceptibility todisease and vice. In spite of prohibitive laws, racial intermixture iscontinuing, and the problem of the mixed blood is becoming more andmore acute. Social unrest among the masses of southern Negroes isincreasing. The World War created new aims and aspirations amongthousands of Negroes. New leaders are arising to preach racialequality for the Negro; old leaders are in many cases becoming moreimpatient with the attitude of the white population. 253. HESITANCY IN ATTACKING THE PROBLEM. --The American people havebeen singularly backward about grappling with the problem of fittingten million Negro citizens into the fabric of American democracy. Oneexplanation of this backwardness is that until recently many havebelieved that the Negro would die out under freedom. This expectationhas not been realized, for while the Negro population is increasingless rapidly than is the white population, it is neverthelessincreasing. The Negro is not dying out. Nor can he be deported toLiberia or other colonies, as was often suggested in the last century. The Negro is here to stay, and his problems must be solved. 254. NEED OF A CONSISTENT PROGRAM. --Many institutions and individualshave attacked various phases of the Negro problem with courage andsuccess, but we are in need of a unified and comprehensive programrather than of a series of unrelated endeavors. Above all what isneeded is not impassioned opinion or cure-all schemes, but rather thedevelopment of a sound and comprehensive program which shall attackthe problem from a number of angles at the same time. Such a programmust have a double end in view: First, the immediate needs of theNegro must be met; second, we must permit the Negro to be trainedtoward a position in which he will be able to play a useful andhonorable role in our national life. Thus the great comprehensivepurpose of this program is to help the Negro adapt himself to Americanlife, to aid him in fitting in with our economic, social, andpolitical institutions, and to encourage him to contribute to thedevelopment of American culture to the best of his ability. 255. EDUCATION. --Education is the most important element of anyprogram designed to help the Negro. Ability to read and write, thehabit of study, training in correct thinking, all are of such basicvalue that it is difficult to understand why we have so long neglectedthe education of the Negro. We spend three or four times as much forthe education of the white child _per capita_ as for the education ofthe Negro child. Negro schools are sparsely distributed; they arepoorly equipped, and they are sadly hampered by lack of competentteachers. Clearly we must spend vast sums on Negro education, if weare to expect marked improvement in the Negro's social and economiccondition. We cannot expect the Negro to cease being a problem untilhe has been trained in the fundamentals of citizenship. "Theinadequate provision for the education of the Negro, " says theSouthern University Race Commission, "is more than an injustice tohim; it is an injury to the white man. The South cannot realize itsdestiny if one third of its population is undeveloped andinefficient. " 256. ECONOMIC ADJUSTMENT. --The Negro cannot be expected to become athrifty, responsible citizen until he is rendered capable of earning adecent living at productive work. He must acquire the habit of workingsteadily and efficiently under a system of free contract. Thiseconomic readjustment, many students of the Negro problem believe, will be attained largely through industrial education. We already haveseveral excellent industrial training schools for Negroes, includingHampton and Tuskegee. The latter was made famous by Booker T. Washington, an ex-slave who devoted his life to the economicreadjustment of his people. A great deal more must be done in this direction. In spite of theexcellent beginnings made at Hampton and Tuskegee, not more than oneper cent of our Negroes have the privilege of industrial education. More adequate instruction is needed in methods of agriculture andstock raising, in the various crafts, and in those professions forwhich the Negro seems fitted. The South needs labor badly, but shecannot use her millions of Negroes effectively until they are turnedinto competent and dependable workers. The Negro appears to havelittle aptitude for mechanical work, or for mill and factoryemployment. Diversified agriculture on a small scale seems to be themost promising industry for him, and one in which he oughtconsistently to be encouraged. 257. THE NEED FOR COÖPERATION. --No permanent solution of the Negro'sdifficulties can be attained without the friendly coöperation of allparties concerned. Most of our Negroes live in the South, but theNegro is no more a purely southern question than Japanese immigrationis a purely Californian problem. We are one nation, and the problemsof one section are the problems of the whole. The South must not beleft alone, either to neglect the Negro, or to struggle with hisdifficulties as best she can. Generous aid must be extended her by theNorth, East, and West, before we can expect a solution of the Negroquestion. Furthermore, there must be coöperation between the leaders of theNegro and white races, otherwise energy will be wasted and inter-racial bitterness created. Very promising beginnings in this directionhave recently been made in the South. Nevertheless it is to beregretted that many leaders, both white and Negro, are still prone topropose "remedies" for the Negro problem which serve their owninterests, but which show little or no regard for the rights of theother group, or for the welfare of the nation. Above all, there must be a firm resolve to work toward a fairsolution, and an earnest desire to be just and humane. Hard andunpleasant facts cannot be argued away, but at least they can betreated rationally. No solution can be reached except through law andorder. Neither violence nor deceit can solve this or any otherproblem. Race riots and lynchings are proof that those who engage inthem are unfit to carry on the work of American democracy. 258. THE PROMISE OF THE NEGRO. --There is a good deal of discussion asto whether or not the Negro race is merely backward, or whether it isan inferior race. Those contending that the Negro is only backwardbelieve that ultimately he can be fitted into the fabric of Americanlife; those insisting that he is inferior declare that all attempts toadapt the Negro to American life will prove unavailing. Academic discussions of this sort are not to the point. As to whetheror not the Negro is backward or inferior, and as to precisely whateach of these terms implies, there must always be a good deal ofdispute. For practical purposes it is enough to admit that the Negrocannot now do many of the things which the average white man can do, and that in so far as this is true, the Negro is less effective as acitizen. At the same time, it should be frankly recognized that the Negro hasshown himself capable of substantial progress. It will be moreappropriate to discuss the inferiority of the Negro when he has failedto react to the most comprehensive, intelligent, and consistentprogram which we are able to draw up. This we have not yet done, anduntil it is done, we shall have less cause to deny to the Negro acapacity for civilization than the Negro will have cause to complainof our unhelpful attitude toward him. So far as we now know, there isno scientific justification for believing that the masses of AmericanNegroes cannot ultimately be trained to a useful sphere in Americanlife. QUESTIONS ON THE TEXT 1. How were Negroes first introduced into this country? 2. When did the modern Negro problem come into existence? 3. What proportion of our population is Negro? 4. Where are most of our Negroes found? 5. What is meant by saying that the Negro is adaptable? 6. In what particulars has the Negro made substantial progress sincethe Civil War? 7. What is the present economic condition of the Negro? 8. Why is the social condition of the Negro unsatisfactory? 9. What can be said as to the present political condition of theNegro? 10. Why have we delayed the development of a comprehensive plan formeeting the needs of the Negro? 11. What is the importance of Negro education? 12. Why is the economic readjustment of the Negro important? 13. Discuss the need for coöperation in meeting the Negro's problems. 14. What is the promise of the American Negro citizen? REQUIRED READINGS 1. Williamson, _Readings in American Democracy, _ chapter xxii. Or all of the following: 2. _Annals_ of the American Academy of Political and Social Science, vol. Xlix, "The Negro's Progress in Fifty Years, " pages 47-58. 3. Washington, _Tuskegee and its People_, chapter i. 4. Williamson, _Sociology of the American Negro_, chapters xii, xvi, and xxvii. QUESTIONS ON THE REQUIRED READINGS 1. Discuss the recent decrease in Negro illiteracy. (Williamson, chapter xii. ) 2. What difficulty is encountered in applying mental tests to Negroes?(Williamson, chapter xii. ) 3. Outline the results of mental tests of the Negro. (Williamson, chapter xii. ) 4. Summarize the chief characteristics of the Negro race. (Williamson, chapter xvi. ) 5. What Negro faults might be turned into virtues? (Williamson, chapter xvi. ) 6. Discuss the role of the mulatto leader. (Williamson, chapter xvi. ) 7. What is Tuskegee Institute? (Washington, page 19. ) 8. What are the chief aims of Tuskegee Institute? (Washington, page21. ) 9. What was Booker T. Washington's concept of education? (Washington, pages 28-30. ) 10. What progress in Negro education has been made since 1880?(_Annals_, pages 51-52. ) 11. What four forces retard the economic development of the Negro inthe South? (_Annals_, page 55. ) TOPICS FOR INVESTIGATION AND REPORT II 1. African background of the American Negro. (Williamson, _Sociologyof the American Negro_, part i. ) 2. Slavery. (Hart, _Social and Economic Forces in American History_, chapter xix; Callender, _Selections from the Economic History of theUnited States_, pages 768-793; Williamson, _Sociology of the AmericanNegro_, chapter v. ) 3. Gains and losses under slavery. (Williamson, _Sociology of theAmerican Negro_, chapter xxiv. ) 4. The Negro in business. (Atlanta University Publications, No. 4. ) 5. The Negro in professional occupations. (_Annals_, vol. Xlix, pages10-18. ) 6. The Negro as an unskilled laborer. _Annals_, vol. Xlix, pages 19-28. 7. The Negro as a skilled worker. (Atlanta University Publications, No. 17. ) 8. The system of Negro tenancy. (_Annals_, vol. Xlix, pages 38-46. ) 9. The Negro in the city. (Wolfe, _Readings in Social Problems_, chapter xviii; _Annals_, vol. Xlix, pages 105-119. ) 10. The Negro family. (Atlanta University Publications, No. 13;Tillinghast, _The Negro in Africa and America_, part iii, chapter iii;_Annals_, vol. Xlix, pages 147-163. ) 11. Negro organizations. (_Annals_, vol. Xlix, pages 129-137. ) 12. The Negro church. (Atlanta University Publications, No. 8;Tillinghast, _The Negro in Africa and America_, part iii, chapter iii;Washington, _The Story of the Negro_, vol. Ii, chapter xiii. ) 13. The mulatto. (Williamson, _Sociology of the American Negro_, chapters xx, xxi, and xxii. ) 14. Race relationships in the South. (_Annals_, vol. Xlix, pages 164-172; Storey, _Problems of To-day_, chapter iii. ) 15. Negro education. (_Annals_, vol. Xlix, part iv; Wolfe, _Readingsin Social Problems_, pages 769-783; Washington, _The Story of theNegro_, vol. Ii, chapter v; Tillinghast, _The Negro in Africa andAmerica_, part iii, chapter iv. ) 16. The work of Booker T. Washington, (Washington, _Up from Slavery_. See also an encyclopedia. ) 17. Tuskegee Institute. (Washington, _Tuskegee and its People_. ) 18. The Negro's part in the development of the South. (_Annals_, vol. Xxxv, pages 124-133; Washington, _The Future of the American Negro_. ) CHAPTER XXIII THE FAMILY 259. SIGNIFICANCE OF THE FAMILY. --From whatever angle we approachsociety, the family is the ultimate unit and basis. The whole fabricof civilization, whether considered from an economic, a social, or apolitical standpoint, depends upon the integrity of the family, andupon the wholesomeness of the home life centering about the father, mother, and children. The home is the nursery of our fundamentalinstitutions: it is the origin of our physical and mentalinheritances; it is the center of our training for private and publiclife; it is the moral and religious fount which nourishes the idealsand beliefs which fashion our lives and mould our character. A nationbuilt upon decaying homes is bound to perish; a nation composed ofnormal prosperous families is in a good way to perpetuate itself. Itis of the very greatest importance, therefore, that we inquire intothe character and tendencies of the American family. 260. THE FAMILY IN THE MIDDLE AGES. --Fully to appreciate the nature ofthe modern family we must know something of the family as it existedin Europe in the Middle Ages. Unity was the striking characteristic of the medieval family. Economically it was very nearly self-sufficing, that is to say, mostof the food, clothing, and other necessities consumed by it wereprepared by the family members. Very little in the way of educationand recreation existed beyond the family circle. In religiousactivities the family played an important role, family worship underthe leadership of the father being a common domestic function. Themedieval family was stable, partly because legal and religiousauthority was concentrated in the hands of the father, partly becausethe family members were economically interdependent, and partlybecause the social and religious interests of the family memberstended to coincide. Divorce was uncommon, and the children generallyremained in the home until their majority had been attained. 261. THE FAMILY IN MODERN TIMES. --We have already seen that since theclose of the Middle Ages, and especially during the last twocenturies, important economic, social, and political changes have beengoing on in civilized society. In common with other socialinstitutions, the family has been greatly influenced by these changes. The family which we have described as the medieval type has beeneither destroyed or greatly modified, and a new type is beingdeveloped. Probably this new type of family will present substantialgains over the family of the Middle Ages, nevertheless the period oftransition is fraught with danger. A great problem of Americandemocracy is to aid in the social readjustment of the family. In orderthat we may be competent to aid in this readjustment, let us discoverin what ways the family has been modified by the economic, social, andpolitical changes referred to above. 262. THE INDUSTRIAL REVOLUTION AND THE FAMILY. --We have examinedsomewhat in detail the effect of the Industrial Revolution upon oureconomic life; it remains to be pointed out that the same phenomenonhas profoundly affected the character of our most vital socialinstitution, the family. Directly or indirectly, the Industrial Revolution has affected familylife among all classes of the population. To some extent capitalismhas given rise to a class of idle rich, living upon the proceeds ofpermanent investments, and resorting to extravagance and loose methodsof living in order to occupy their time. This development is doublyunfortunate. In the first place it renders difficult the maintenanceof normal homes among the idle rich. In the second place, the tendencyof certain types of individuals to imitate and envy the idle richencourages false standards and leads to a depraved moral sense. To those classes which furnish the majority of our professional men, the complex division of labor has brought a serious danger. So greatis the need of specialized training among these groups that marriageis often delayed until after the age of thirty. The individual is thenin a better position to support a family, but often his habits are sofirmly fixed that he finds it difficult to adapt himself to familylife. Even more important, perhaps, have been the effects of the IndustrialRevolution upon the masses of wage earners. Men earning low wages areoften unable to marry, or, if they assume that responsibility, theyare unable properly to support their families. In spite of the factthat capitalism has greatly increased our material welfare, thedependence of large numbers of people upon day wages increases thehazards of family life. Industrial accidents, occupational diseases, or the interruption of earnings by strikes and unemployment, --any oneof these mishaps may work a hardship upon the wage-earner's family. Poverty may induce child labor, deprive the family of proper food andother necessities, and retard the education of the children. Finallyit may so emphasize the elements of strain and worry that parents areunable to give proper attention to the training of their children. 263. THE FACTORY SYSTEM AND THE HOME. --The Industrial Revolution haslessened the economic importance of the home. The typical modernfamily is no longer self-sufficing, but is dependent upon the factorysystem for many commodities formerly prepared within the home circle. Spinning, weaving, tailoring, shoe-making, soap-making, and otherindustries have moved out of the home and into the factory. Even thepreparation of food is increasingly a function of agencies outside thehome. Especially in cities there has been a steady development ofrestaurants, delicatessen shops, and factories engaged in the large-scale preparation of bread, canned soups, and other food products. There is thus less work to be done in the home than formerly; at thesame time the development of our industrial life has notably increasedthe amount of work to be done outside the home. The outcome of thesetwo complementary forces has been that not only the father, but oftenthe mother and the half-grown children as well, have been drawn intoindustry. As the result of this development, the economicinterdependence of the family has been destroyed, and the way has beenopened to the disintegration of the home. Social contacts betweenfamily members have decreased, while the specialized character of theindividual's daily work has operated to break down the commoninterests which family members formerly had outside the home. 264. LACK OF PREPARATION FOR HOME-MAKING. --The factory system hasrendered more difficult the preparation of our boys and girls forhome-making. Where boys go out to work at an early age and aredeprived of home training during the adolescent period, neither fathernor mother has the opportunity properly to acquaint them with thenature and responsibilities of home-making. Girls very often arereared without adequate knowledge of cooking, sewing, and otherhousehold arts. This is due, partly to the transfer of many of thedomestic functions to specialists beyond the home, and partly to thefact that where girls go into industry they spend most of their timeoutside the home. In the case of both boys and girls, the decreasedamount of time spent in the home not only prevents proper training bythe parents, but it stresses outside interests which are too oftenopposed to domestic ideals. Many parents either allow or encouragetheir children to acquire frivolous habits. As the result of all ofthese factors, both young men and young women frequently marry withouthaving been properly prepared for the responsibilities of home-making. 265. DIFFICULTIES OF HOME-MAKING IN CROWDED CITIES. --With thedevelopment of manufacturing, a larger and larger proportion of ourpeople have made their homes in large cities. To many, city life hasbrought increased opportunities for education and recreation, nevertheless it is difficult to maintain a normal home life in acrowded city. Urban life is highly artificial Simple and wholesomeamusements are less common than expensive and injurious forms ofrecreation. The noise and jar of city life often result in strain andjaded nerves. The scarcity and high cost of house room is, for manycity dwellers, an unavoidable evil. The poor are cramped into small, uncomfortable tenements, while even the well-to-do are frequentlyfound in congested apartment houses. Under such circumstances, thehome often becomes merely a lodging place. Social life is developedout of, rather than in, the home. For the children of the poor thereis often no yard and no adequate provision for recreation. Among therich, conditions are somewhat better, though in fashionable apartmenthouses children are frequently objected to by neighboring tenants orbanned by landlords. 266. ECONOMIC INDEPENDENCE OF WOMEN. --Until very recently a marriedwoman was economically dependent upon her husband. But one of theeffects of the Industrial Revolution has been to make many womeneconomically independent. Women are entering the industrial field withgreat rapidity, and their presence there is now taken as a matter ofcourse. Many women now avoid marriage, partly because domesticinterests fail to attract them, and partly because they have becomegenuinely interested in industry. Where domesticity is the ultimateaim, many women delay marriage because self-support renders them bothable and desirous of retaining their independence for a considerableperiod. Domestic tranquillity is sometimes disturbed by the fact that wiveswere formerly self-supporting girls. In most cases wives are dependentupon their husbands in money matters, a situation which is apt toirritate women who were formerly self-supporting. The husband is ofteninclined to rate the generalized character of housework as being ofless importance than his own highly specialized work. The wife'sirritation at this may be increased by the fact that often she, too, believes that her domestic duties are less dignified and less valuablethan her former work. Not only has the former independence of the wife made her lesstolerant of domestic wrongs and slights, but the realization that shecan support herself, frequently encourages her to seek a divorce. Thetemptation to take this step is increased by the fact that publicopinion now rarely frowns upon a divorced woman. This is in strikingcontrast to the situation two hundred years ago, when most divorcedwomen were not only unable to support themselves, but were sociallyostracized. 267. POLITICAL EMANCIPATION OF WOMEN. --Until very recently women havebeen legally and politically subordinate to men. As recently as acentury ago women in the leading countries of the world were allowedneither to vote, nor to contract debts in their own name, nor to holdor will property. But within the last century women have been emancipated politically. Property rights have been extended them; the growth of the woman'smovement has resulted in the winning of female suffrage. Economicindependence and social freedom have combined with politicalemancipation to emphasize the spirit of individualism among women. Politics and club work have, in the eyes of many wives and mothers, become more attractive than domestic concerns, with a resultantneglect of the home. Higher education for women, including a widerknowledge of legal matters, has acquainted women with their legalrights and privileges, and has made them familiar with the stepsnecessary to secure a divorce. 268. INDIVIDUALISM MAY BE EXAGGERATED. --The American people arecelebrated for their strongly individualistic character. This trait isclosely related to the initiative and self-reliance which have helpedtoward our industrial success; on the other hand, individualism may becarried to the point of selfishness. It is desirable, of course, thatboth men and women maintain high standards of living, and that theycultivate their respective personalities. It should be noted, however, that marriage is often delayed or altogether avoided because ofselfish ambition and the desire to live a care-free and self-centeredlife. The insistence which many young people place upon personalrights has encouraged the belief that marriage is intended for man'sand woman's convenience, rather than for the building of normal homesand the development of community life. In too many marriages thecontracting parties selfishly refuse to make the mutual concessionsnecessary in married life and so wreck their domestic happiness. 269. THE DIVORCE EVIL. --Family instability has been increased by thedemoralizing influences which we have been discussing. A familiarsymptom of family instability is the divorce rate. One out of everyeight or nine marriages in the United States is dissolved by divorce. Not only do we have more divorces than all of the rest of the worldtogether, but our divorce rate is increasing three times as fast as isour population. The value of these statistics is affected by two factors. In the firstplace, much domestic unhappiness does not express itself in theseparation of husband and wife. Or, where such separation does takeplace, it may not be through the divorce court. Among the city poor, for example, desertion is four times as common as is divorce. Thus thedivorce rate indicates only a share of family instability. The second modifying factor, however, lessens the force of our divorcestatistics. A high divorce rate is to be interpreted with care. Ourdivorce rate is higher than that of European countries, but it shouldbe remembered that in those countries where customs, laws, andreligious beliefs are relatively conservative, families may be heldtogether legally in spite of the fact that they have alreadydisintegrated. Thus family life may be as unstable in a country inwhich the divorce rate is low, as in a country in which the divorcerate is high. 270. LAXITY OF OUR DIVORCE LAWS. --Although divorce may sometimes benecessary, it is clear that in many of the states of the Union divorcelaws are too lax. The practice of the states as regards divorce isdivergent: in South Carolina divorce is absolutely prohibited; in theremaining states there is a variable number of grounds upon whichdivorce may be secured. Divorces are often rushed through the courts, partly because of the overworked character of the divorce tribunals, and partly because public opinion tolerates the lax administration ofdivorce laws. In some states divorces have been secured in fifteenminutes, being granted without any attempt at solemnity, with noadequate investigation, and with numerous opportunities for collusionbetween the parties involved. The effect of this laxness has been toencourage the dissolution of the home for trivial and improper causes. 271. THE QUESTION OF STRICTER DIVORCE LAWS. --Uniform divorce lawsamong the several states are now being agitated. The essentialprovisions of such laws may be outlined as follows: It is desirable tohave a court of domestic relations, which shall carefully and wiselyattempt a reconciliation of husband and wife before divorceproceedings are resorted to. Applicants for divorce should be _bonafide_ residents of the state in which the suit is filed, and should berequired to reside in the state two years before a decree of absolutedivorce is granted. In some states at least, the number of groundsupon which divorce may be secured should be reduced. An adequateinvestigation should be undertaken, both in order to determine thejustice of the suit, and to prevent collusion. The primary aim of thedivorce laws should be to allow relief from a vicious and hopelesslywrecked union, but at the same time to prevent the misuse of thestatutes by irresponsible and unscrupulous persons. 272. LAXITY OF OUR MARRIAGE LAWS. --The fact that unwise marriages arean immediate cause of divorce leads back to the question of ourmarriage laws. Marriage laws often permit the mating of couples unfitfor home-making. In some states the authorities are not overcareful toprevent the marriage of persons who are mentally defective. There isamong the several states no agreement as to the legal age of marriage, and no agreement as to the relationship within which marriage isforbidden. Hasty unions have been encouraged by the lack of solemnitywhich characterizes civil marriage. Marriage is more and more a civilcontract, devoid of religious sanctions and spiritual associations. Many consider marriage as a civil relation not radically differentfrom any other contract. The effect of this changed attitude has beento encourage the enactment of loose marriage laws, and the carelessadministration of sound marriage laws. 273. THE QUESTION OF STRICTER MARRIAGE LAWS. --Stricter marriage lawsare being advocated in many states. We know far too little abouteugenics to warrant prediction as to the type of individuals bestfitted to build normal homes, but it is clearly desirable to prohibitthe marriage of all mental defectives. There are also good reasons forthe restriction of the marriage of minors, of persons between whoseages there is a wide disparity, and of persons who are members ofwidely divergent races. It would probably check hasty marriages toincrease the length of time elapsing between the issuance of themarriage license and the performance of the ceremony. If modernmarriages were more distinctly upon a religious basis, it is likelythat many persons who now rush thoughtlessly into marriage would beled seriously to reflect upon the significance of the step. 274. LAW NOT THE UTLIMATE REMEDY FOR FAMILY INSTABILITY. --The carefulenactment and wise administration of sound laws on marriage anddivorce will undoubtedly check the number of unhappy and unsuccessfulmarriages. Nevertheless, law is not the ultimate remedy for familyinstability. Unduly restrictive marriage laws may result in abnormaltendencies among certain classes of the population, while severeprohibitions upon divorce may prevent individuals from securingrelease from a hopelessly wrecked marriage. Divorce is only a symptomof deeper-lying evils. Really to remove the dangers which threaten theintegrity of the family we must go deeper than legislation. 275. ECONOMIC AND SOCIAL READJUSTMENT. --One fundamental method ofsafeguarding the family is to counteract the injurious effects of theIndustrial Revolution. Poverty must be lessened or eliminated, so thatmen will be enabled to marry and support families decently. The evilsof overcrowding must be attacked in the interest of a normal homelife. Mothers' pensions and social insurance are desirable methods ofprotecting the laborer's family against the risks of industry. Theprohibition of child labor and the safeguarding of women in industrywill also tend to keep the family intact, and to permit proper hometraining. In short, any measures which will help individuals to adjustthemselves to the economic and social changes of the present age willprovide a more firm and solid foundation for a normal family life. 276. EDUCATION AND THE FAMILY. --Far more fundamental than legislationon marriage and divorce is the training of young people toward afuller appreciation of the responsibilities of home-making. In theproblem of family instability, laws reach symptoms, while educationattacks causes. By education is here meant not merely formal trainingin the school, but character-building of every type. This includestraining in the home, in the school, and in the church. Only when boysand girls are accorded sound training by these various agencies willthey be properly prepared to make homes. Our whole educational system ought to emphasize the importance of apure and wholesome family life. The sanctity of the marriage bond, theseriousness of family responsibilities, and the duty to rear a normalhealthy family, ought to be impressed upon every boy and girl. Youngpeople should be taught to consider adolescence as a period ofpreparation for home-building. During this period it is the duty ofthe boy to fit himself for the proper support of a family, while thegirl ought to feel obligated to become familiar with the tasks andduties of housekeeping. The choice of a husband or wife ought to bemade, not on the basis of passing fancy, but with regard to a life ofmutual service. Extreme individualism ought to be discouraged;personal pleasure ought to be interpreted in the light of marriage asa partnership. Above all, marriage should be faced with therealization that it requires adaptation and concessions on the part ofboth husband and wife. Mutual consideration and respect mustpredominate in the future American family, while the spirit ofimpatience and selfishness must be eliminated. QUESTIONS ON THE TEXT 1. What is the significance of the family? 2. What were the essential characteristics of the medieval family? 3. Why is the modern family in a period of transition? 4. Outline the effect of the Industrial Revolution upon the family. 5. To what extent has the factory supplanted the home as an industrialcenter? 6. Discuss the difficulties of home-making in crowded cities. 7. How have many groups of women become economically independent? 8. Discuss the political emancipation of women. 9. What is the extent of divorce in this country? What two factorsmust be taken into account in interpreting these figures? 10. To what extent are our divorce and marriage laws lax? 11. What proposals have been made toward the correction of this evil? 12. Why is law not the ultimate cure for family instability? 13. What is the importance of economic and social readjustment in theproblem of the family? 14. What should be the chief aims of education with regard topreparation for home-making? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_ chapter xxiii. Or all of the following: 2. Burch and Patterson, _American Social Problems_, chapter xxii. 3. Ellwood, _Sociology and Modern Social Problems_, chapters v, vi, vii, and viii. 4. Goodsell, _The Family as a Social and Educational Institution_, chapters xi, xii, and xiii. QUESTIONS ON THE REQUIRED READINGS 1. Discuss the origin of human marriage. (Ellwood, pages 97-108. ) 2. Distinguish between the maternal and paternal types of family. (Ellwood, pages 110-128. ) 3. What was the character of the early Roman family? (Ellwood, pages132-138. ) 4. What influence has Christianity exerted upon the family? (Ellwood, pages 142-144. ) 5. Summarize the ways in which industry may disintegrate the family. (Goodsell, pages 461-464. ) 6. What is the origin of higher education for women in this country?(Goodsell, pages 439-441. ) 7. Discuss the divorce rate in this country. (Ellwood, pages 148-154;Burch and Patterson, pages 315-321; Goodsell, pages 457-459. ) 8. Name the various grounds upon which divorce may be secured. (Ellwood, pages 154-157; Burch and Patterson, pages 321-322. ) 9. Why is our divorce rate increasing? (Burch and Patterson, pages322-327. ) 10. What proposal has been made relative to a uniform divorce law?(Burch and Patterson, pages 327-328. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Interview an elderly friend for the purpose of discovering how manycommodities now produced outside the home were made within the familycircle a half century ago. 2. Make a list of the advantages which the city offers over thecountry or the small town. Make another list showing wherein it ismore difficult to maintain a normal home in the city than in the moresparsely settled districts of the country. 3. The extent to which girls and women in your community are goinginto industrial pursuits. 4. The marriage laws of your state. 5. The divorce laws of your state. 6. What amendments, if any, would you offer to the marriage anddivorce laws of your state? II 7. The primitive family. (Goodsell, _The Family as a Social andEducational Institution, _ chapter ii. ) 8. The family in the early stages of civilization. (Burch andPatterson, _American Social Problems, _ chapter vi. ) 9. Influence of Christianity upon the family. (Goodsell, _The Familyas a Social and Educational Institution, _ chapter vi. ) 10. The family in the Middle Ages. (Goodsell, _The Family as a Socialand Educational Institution, _ chapter vii. ) 11. The English family in the seventeenth and eighteenth centuries. (Goodsell, _The Family as a Social and Educational Institution, _chapter ix. ) 12. The family in the American colonies. (Goodsell, _The Family as aSocial and Educational Institution, _ chapter x. ) 13. The feminist movement. (_Annals, _ vol. Lvi, part i. ) 14. The home in the crowded city. (Riis, _Peril and Preservation ofthe Home. _) 15. Desertion. (Colcord, _Broken Homes. _) 16. Divorce statistics. (Willcox, _The Divorce Problem, _ a study instatistics; Lichtenberger, _Divorce_, chapter v. ) 17. Uniform divorce laws. (Wolfe, _Readings in Social Problems, _chapter xv. ) 18. Education for family building. (_Annals, _ vol. Lxvii, pages 47-53. ) FOR CLASSROOM DISCUSSION 19. Should Congress be granted the power, through constitutionalamendment, to pass a Federal divorce law? 20. Should men be required to have a minimum income before beinggranted a marriage license? 21. Is domestic science more or less important now than it was acentury ago? 22. Are the chances of a successful marriage greater or less ifmarriage takes place after both parties are more than twenty-fiveyears of age? CHAPTER XXIV DEPENDENCY: ITS RELIEF AND PREVENTION 277. THE MEDIEVAL NEIGHBORHOOD. --Throughout the earlier part of themedieval period the majority of the common people of western Europelived in small agricultural communities. There was little in the wayof trade or travel, for the area comprising the village or the feudalmanor was relatively self-sufficing. The interests of the peoplecentered almost wholly about the local neighborhood into which theyhad been born, and in which they lived and died. Life was stable, andthe daily work of the peasants entailed few hazards. When, because ofillness or accident, individuals were temporarily unable to supportthemselves, informal aid was extended them by neighbors and friends. In case of a more serious dependency, growing out of physical ormental defect, for example, the aid extended by neighbors might besupplemented by help from the feudal lord. The few strangers in thecommunity found the monasteries always open to them, regardless of thecharacter of their need. 278. BREAKDOWN OF THE MEDIEVAL NEIGHBORHOOD. --During the latter halfof the medieval period, and during the earlier part of the modernperiod, a number of factors combined to break down this early type ofneighborhood. The Crusades, the decay of feudalism, and theRenaissance disrupted the stable, isolated, and self-sufficing life ofthe medieval neighborhood. The discovery of America and the growth oftowns and cities stimulated trade and travel. People moved about more, strangers came into the community, family contacts and friendshipswere broken, and community life became more impersonal. For manypeople a change of habitation or of occupation increased the hazardsof life, while the decline of the neighborhood spirit made informalaid by neighbors and friends less available. To meet the growing needsof the dependent classes, the Church extended and improved its systemof almsgiving. To a greater extent than ever before the monasteriesbecame havens of refuge for the helpless and friendless. The clergynot only themselves dispensed alms, but encouraged the wealthy laityto do likewise. Unfortunately, however, the aim of almsgiving in this period was notso much to help the dependent back to self-support, as to increase thepiety of the individual dispensing the alms. Pauperism was looked uponas inevitable, and the moral effect upon the giver was generally ofmore importance than was the use that the needy made of the almsreceived. 279. RISE OF THE URBAN NEIGHBORHOOD. --The breakdown of the medievalneighborhood was completed by the Industrial Revolution. The factorysystem drew large numbers of countrymen to the cities. Here theyworked long hours in insanitary work-shops, and lived in crowdedtenements devoid of many improvements which we now regard as necessaryto health and comfort. Home life was disrupted, and neighborhood tieswere broken in the process of adjusting agricultural laborers to thefactory system. The medieval neighborhood began to be supplanted by anew type of neighborhood, one primarily urban and impersonal incharacter. This new type of neighborhood brought with it greaterhazards for the poor, and at the same time offered fewer opportunitiesfor mutual aid between neighbors. Under such circumstances, theproblem of dependency became increasingly serious. 280. EXTENT OF DEPENDENCY IN MODERN TIMES. --One of the vital problemsof American democracy is the proper care of those individuals who areunable, either to support themselves, or otherwise to protectthemselves against the hazards of modern life. The extent to whichindividuals are dependent for help upon agencies outside their familycircle is unknown. Statistics are meager, and the complex nature ofdependency renders it difficult of measurement. Perhaps a reasonableestimate of dependency in the United States is that at some timeduring the year about five per cent of the population seeks charitableassistance. The total amount expended annually for the care of thedependent classes in the United States is more than half a billiondollars. 281. CAUSES OF DEPENDENCY. --The causes of dependency in a moderncommunity are difficult to analyze. Generally the applicant forcharity is not in a state of dependency because of a single isolatedcause, but because of a number of combined causes, interlocking in amost confusing way. In the effort to throw light upon this tangledsituation, let us briefly survey the problem from the economic, social, personal, and political viewpoint. From the economic viewpoint much dependency is the result ofmaladjustments in industry. Most laborers have little or no savings, so that when unemployment, strikes, industrial accidents, or crisesinterrupt their earnings, they are soon forced to fall back uponcharity. Economic causes figure in from fifty to eighty per cent ofcharity cases, either as minor or major factors. In the majority ofthese cases the unemployment or other handicap of the laborer is dueto industrial maladjustments beyond his power to control. Closely connected with the economic causes of dependency are thesocial causes. The crowding of large numbers of workmen into citiesleads to abnormal living conditions, which encourage ill-health, disease, and vice. Among unskilled laborers, poverty and the largenumber of children often prevent the young from securing a helpfulamount of education. The lack of wholesome and inexpensive recreation, and the existence of costly and injurious forms of entertainment, encourage unwise expenditure of savings, and, to that extent, mayinfluence dependency. Child labor and the employment of mothers inindustry prevent a normal family life, and may be intimatelyassociated with illiteracy, low moral standards, and pauperism. Often indistinguishable from social causes are the personal causes ofdependency. Laziness, irresponsibility, and thriftlessness figure infrom ten to fifteen per cent of charity cases. Penniless old age isoften the outcome of bad personal habits in youth and middle life. Idling, gambling, and other vicious habits are important causes ofpauperism. Sickness is a factor in at least a third of charity cases, while disease figures in seventy-five per cent of such cases. Physicalor mental defect is of great importance in dependency, oftenaccompanying bad personal habits as either cause or effect. Thefeeble-minded, the epileptic, and the insane constitute a seriousburden upon the community. Defects in government have in some cases either encouraged dependency, or have perpetuated it. In so far as we have neglected legislationdesigned to reduce the force of industrial maladjustments, politicalfactors may be said markedly to influence dependency. Our tardiness inprotecting the labor of women and children is certainly responsiblefor a share of dependency. Our failure to adopt a comprehensiveprogram of social insurance has added to the burden upon charity. Housing is receiving more and more attention in our cities, yet theliving quarters in many districts continue to be sources of ill-healthand vice. Probably we shall eliminate a share of dependency when weshall have established a comprehensive system of state and Federalemployment bureaus. The wise restriction of immigration is alsoimportant, as is the matter of vocational education for the unskilledclasses. 282. THE GIVING OF ALMS. --Until the period of the Reformation inEurope, the distribution of alms by the clergy and by pious laymen wasthe chief method of dealing with the problem of dependency. Then theReformation crippled the temporal power of the Church, andecclesiastical almsgiving declined in importance. The place formerlyheld by the Church was filled, partly by public almshouses orworkhouses, and partly by indiscriminate and unorganized almsgiving onthe part of kind-hearted individuals. Individuals distributed almschiefly to dependents with whom they were personally acquainted, andwhose needs could be effectively met without their being removed to aninstitution. Wandering dependents, and unfortunates whose needs wererelatively serious and permanent, were cared for in the almshouse. This latter institution developed very early in England, and appearedin colonial America in the seventeenth century. Until about 1850 itwas often the only institution in American communities which cared forthe helpless adult dependent. The almshouse, as it existed in thiscountry a few decades ago, has been described as a charitable catch-all, into which were crowded paupers, the insane, the feeble-minded, the blind, the orphaned, and other types of dependents. 283. ALMSGIVNG PROVES INADEQUATE. --The attempt to meet the problem ofmodern dependency solely by the giving of alms illustrates thedifficulty of employing an ancient and simple method of treatment fora disease which has become highly complex. Almsgiving by individuals very often pauperizes rather than helps theindividual to help himself. When the dominant aim of the almsgiver isto satisfy himself as to his piety, it is only by accident that thealms really help the recipient. Very often what is needed is not moneyor material aid in other form, but wise direction and friendly advice. There is still a great deal of unwise and indiscriminate almsgiving byindividuals, but the spread of new ideals of social help is probablycutting down the amount. The almshouse, as it existed in the last century, was productive ofmuch evil. Very often superintendents were allowed to run theseinstitutions for personal profit, a practice which allowed theexploitation and neglect of the inmates. The practice of herding intothis generalized institution every variety of dependent had greatdrawbacks. Specialized care and treatment were impossible. Disease wastransmitted, and vice encouraged, by the failure properly to segregatevarious types of dependents. Inmates were in many cases allowed toenter and leave the institution at will, a privilege which encouragedshiftlessness and improvidence. 284. THE EVOLUTION OF NEW IDEALS. --After the middle of the lastcentury our attitude toward the dependent classes began to changerapidly. There was a gradual abandonment of almsgiving as the solemethod of attacking dependency. Rising standards of conductcontributed to the development of new ideals, some of them now fairlywell established, and some of them still in the formative process. Thegeneral content of these new ideals may be briefly described asfollows: The primary aim of those who come in contact with the dependentclasses should be to help those classes, rather than to satisfy piousaspirations or to indulge sentimental promptings. Rather thanbelieving that alms are helpful because they are gratefully received, we should first discover what will help the dependent, and then trainourselves and him to take satisfaction in that which is helpful. Poverty is not to be taken for granted. It is neither inevitable norirremedial. It is a social disease which we must attack with the aimof destroying. When individuals are found in an emergency they should be givenrelief, regardless of personal merit. The extension of relief in caseof fire, flood or other accident is only an act of humanity. A different and more productive form of help is remedial work. Thistype of work often accompanies and follows relief work. It iscorrective, for example, the finding of employment for a friendlessman, or the medical treatment of a sick man, is remedial work. A still higher form of social work is preventive. Hand in hand withthe giving of work to friendless men, and the curing of sick men, forexample, we must undertake measures which will prevent a recurrence ofunemployment on the one hand, and illness on the other. Preventivework is often indirect, but ultimately it is the most important typeof social work. Recently there has been a reaction against almsgiving or pure charity, and a distinct tendency to develop what may be called the concept ofsocial service. Charity is too often concerned with the pauper class;social service is a wider term and includes not only what was formerlyknown as charity, but also child welfare, settlement work, folkdancing, and other socializing activities which are helpful in amodern community, but which have nothing to do with alms. Charity toooften pauperizes and degrades; social service encourages self-help andself-expression in the vital social relations. Formerly charity wasalmost exclusively the function of the pious and the sympathetic; thepresent tendency is for social service to become a distinctprofession, administered by highly trained specialists. 285. THE STAGE OF SPECIALIZATION. --One of the signs that we arerecognizing the growing need of an individualized treatment ofdependents, is the degree to which our social service agencies arebecoming specialized. The treatment of the dependent may take eitheran institutional or a non-institutional form. Let us briefly noticethe specialization in each of these forms. The almshouse, almost universal a century ago, is being rapidlydisplaced by a series of specialized institutions. In most statesthere are now separate institutions for the treatment of thepauperized, the diseased, the blind, the deaf, the insane, the feeble-minded, and the otherwise dependent. Inmates of these institutions aregiven special treatment by experts. When the defect has been remedied, the patient is released; in case remedy is impossible, the individualis segregated and accorded humane and sympathetic treatment during therest of his life. This prevents the untold harm of releasing defectiveand irresponsible people into the community. Institutions of thischaracter are largely under state control, and are intended primarilyfor individuals who cannot be properly treated in their homes. Dependents who are only slightly or temporarily handicapped, or whoare not in need of special treatment, may be best cared for in theirhomes and by private individuals or associations. In this non-institutional form of social service there is also a high degree ofspecialization. The casual almsgiver has been succeeded by a wholeseries of social service agencies. Prisoners' aid societies, employment bureaus, immigrant aid societies, flower missions, Americanization clubs, recreation centers, housing clubs, communitynursing clubs, and scores of other organizations have sprung up. Everylarge city in the United States has several hundred of theseorganizations, each attacking social problems of a special type. 286. NECESSITY OF COÖRDINATION. --Specialization in social service hasbeen followed by the development of means of coördinating the variousspecialized agencies. That there is urgent need of such coördination has been repeatedlycalled to our attention. It is still true that often the institutionsfor the dependent classes within a single state pursue differentmethods, and so limit their separate fields that many types ofdependents are inadequately cared for. Among the large number of private agencies there has been a greatwaste of time and energy. The fact that each society is independent ofits fellows has meant that in some fields of social service effortswere duplicated, while other fields were neglected. Cases demandingtreatment by several agencies could not be given adequate care becauseof the lack of correlation among such agencies. Beggars often imposedupon a number of different societies by assuming different names. Eachsociety had its own periods of campaigning for funds, a practice whichmeant an excess of tag-days and campaigns and a waste of time andenergy on the part of social workers. 287. COÖRDINATION OF PUBLIC INSTITUTIONS. --The coördination of publicinstitutions for the dependent and defective classes proceeded rapidlyafter 1880. At present the situation in the various states is somewhatas follows: The actual administration of local institutions is generally in thehands of the town or county authorities. Large cities, however, oftenhave a system of institutional relief separate from that of the countyin which they are located. In many states the local authorities aresubject to some measure of central supervision by a state board, whichis called by various names. In most cases this is merely an advisoryboard with power to inspect state institutions, and to makerecommendations to the governor or state legislature. More recently, there is a tendency to go still further, and to reorganize andconsolidate the various state institutions so as to bring themdirectly under the control of a state board or commission. In severalstates the board is already one of control, that is to say, it has thepower not only to inspect the various institutions of the state, butalso the power to appoint their superintendents, and, in general, toadminister the institutional relief of the state. 288. COÖRDINATION OF PRIVATE AGENCIES. --The movement to coördinatesocial service agencies of a private nature has been relatively slowand unsatisfactory. This has been due, partly to the large number ofsocieties involved, and partly to the lack of any centralizedauthority to supervise such organizations. In some large cities therehas been a considerable degree of consolidation among societies whichare purely charitable, but among the large number of social serviceorganizations which are not purely charitable, the coördinatingprocess has not gone beyond the functional stage. In this stage thevarious social service agencies of a city remain separate anddistinct, but may become members of a council or federation whichserves to coördinate their various functions. [Footnote: In thisfunctional coördination the "consolidated" or "united" charities ofthe city generally appear as a single organization. ] The aim of this functional coördination is to secure the greatestdegree of coöperation possible without the actual amalgamation of thecoöperating agencies. Imposition by beggars is unlikely, because aclearing house of information keeps the various agencies informed asto the work of one another. By periodic reference to a centralizedsystem of card indices, different societies may keep informed to whattypes of social work are being duplicated, and as to which lines ofeffort are being neglected. Where the social service agencies of acity are thus coördinated, an applicant applies to the central agencyand is then directed to the organization best suited to meet hisneeds. Such coördinating agencies stress the necessity of scientificwork which will aid in the adjustment of personal relations and helpsecure the maximum of result with the minimum of expenditure. 289. THE NEIGHBORHOOD OF THE FUTURE. --The small, stable, andrelatively unprogressive neighborhood of the early European period hasdisappeared before the important economic, social, and politicalchanges of the last five centuries. The typical neighborhood of moderntimes is larger, more inclined to be made up of transient anddissimilar types of people, and more impersonal. It is moreprogressive, but more likely to hold hazards for the averageindividual. The whole period since the Industrial Revolution has beenone of neighborhood readjustment, of which many aspects of theproblems of crime, the family, and dependency are phases. The new typeof neighborhood has probably come to stay, but there are indicationsthat life in the community of the future will prove less and lesshazardous. The development of professional social service, growing outof the charity movement, but now embracing community work of everykind, will probably lessen the evils of the modern neighborhood, andretain its desirable features. QUESTIONS ON THE TEXT 1. Describe the character of the medieval neighborhood. 2. What factors contributed to the breakdown of the medievalneighborhood? 3. What effect did the Industrial Revolution have upon theneighborhood? 4. What is the extent of dependency in modern times? 5. What are the economic causes of dependency? 6. What are the social causes of dependency? 7. What are the personal causes of dependency? 8. How may defects in government contribute to dependency? 9. Discuss the giving of alms in early Europe. 10. Why is almsgiving inadequate as a method of treating dependency? 11. Outline the new ideals which recently have begun to influence thetreatment of the dependent. 12. What is the nature of social service? 13. Discuss specialization in social service. 14. Why is coördination a necessary step when social service agencieshave become highly specialized? 15. What may be said as to the character of the neighborhood of thefuture? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxiv. Or all of the following: 2. Devine, _Misery and its Causes_, chapter v. 3. Devine, _Principles of Relief_, chapter ii. 4. Guitteau, _Government and Politics in the United States_, chapterxiv. 5. Warner, _American Charities_, revised edition, chapters iii andxxii. QUESTIONS ON THE REQUIRED READINGS 1. Why is it difficult to classify the causes of poverty? (Devine, Misery and its Causes_, pages 167-169. ) 2. What are the objective causes of dependency? (Warner, page 41. ) 3. What are the subjective causes of dependency? (Warner, page 42). 4. What is the Charity Organization Society? (Warner, page 450. ) 5. Why did the Charity Organization Society arise? (Warner, page 451. ) 6. Where did the first society of this type arise? (Warner, page 451. ) 7. Discuss the methods of the Charity Organization Society. (Warner, page 458. ) 8. What is the nature of the machinery employed by the CharityOrganization Society? (Warner, page 458. ) 9. What are the essentials of a sound relief policy? (Devine, _Principles of Relief_, page 13. ) 10. Under what circumstances should charitable aid be refused?(Devine, _Principles of Relief_, page 21. ) 11. What is meant by the term "medical charities"? (Guitteau, page154. ) 12. What is the great aim of social service? (Devine, _Misery and itsCauses_, page 235. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a study of your neighborhood with regard to some or all of thefollowing points: (a) Increase in population (b) Changes in the racialtype of the population (c) Changes in the occupational tendencies ofthe population (d) Changes in the spirit of neighborliness (e) Changesin the administration of relief to dependents. 2. Study the causes of dependency in your community with regard to theinfluence of economic, social, personal and political factors. (Forthis information, interview local social workers. ) 3. Study an actual charity case, and make a diagram or sketch showingthe number of factors involved. 4. Make a visit to an almshouse (sometimes called the poorhouse), andreport to the class upon conditions there. 5. List and classify the types of institutions which care fordependents in your state. 6. The extent to which institutions for the dependent have beencoördinated in your state. 7. Classify the agencies which are performing some type ofprofessional social service in your community. 8. Interview a local social worker with regard to his or her ideals ofsocial service. (Compare the result with the ideals set forth inSection 284 of this chapter. ) II 9. The personal causes of degeneration. (Warner, _American Charities_, chapter iv. ) 10. The social causes of degeneration. (Warner, _American Charities_, chapter vi. ) 11. Desertion. (Devine, _Principles of Relief_, chapter xi. ) 12. Dependent children. (Devine, _Principles of Relief_, chapter ix;Warner, _American Charities_, chapter xii. ) 13. Relief in the home. (Devine, _Principles of Relief_, chapter vi. ) 14. Relief in disasters. (Devine, _Principles of Relief_, part iv. ) 15. Beggars and impostors. (Conyngton, _How to Help_, chapter ix. ) 16. Volunteer work in charitable relief. (Devine, _The Practice ofCharity_, chapter vi. ) 17. The social settlement. (Conyngton, _How to Help_, chapter xxvi. ) 18. The insane and the feeble-minded. (Warner, _American Charities_, chapters xiv and xv. ) 19. Medical charities. (Cabot, _Social Work_; Henderson, _Introductionto the Study of the Dependent, Defective and Delinquent Classes_, partii, chapter viii. ) 20. Organization of charity in England. (Henderson, _Introduction tothe Study of the Dependent_, etc. , chapter iv. ) 21. Organization of charity in France. (Henderson, _Introduction tothe Study of the Dependent_, etc. , chapter ix. ) 22. Organization of charity in Holland. (Henderson, _Introduction tothe Study of the Dependent_, etc. , chapter v. ) 23. Organization of charity in Germany. (Henderson, _Introduction tothe Study of the Dependent_, etc. , chapter i. ) 24. The spirit of social work. (Devine, _The Spirit of Social Work_. ) 25. Tendencies in social service. (Warner, _American Charities_, chapter xxiii. ) FOR CLASSROOM DISCUSSION 26. To what extent is the number of inmates in institutions for thedependent classes an accurate guide to the extent of dependencythroughout the state or nation? 27. Should all institutions for the dependent classes be placed underthe direct control of the state authorities? 28. Should the state authorities attempt to administer relief todependents who remain in their homes? 29. Should the giving of alms by individuals be abandoned in favor ofthe practice of treating dependency entirely through professional orofficial agencies? 30. What should we do when street beggars ask us for money? CHAPTER XXV RURAL LIFE 290. THE SIGNIFICANCE OF RURAL LIFE. --Agriculture is our oldest andmost basic industry. Almost half of our people are found in the ruraldistricts, most of them subsisting directly upon the products of farm, forest, and range. Directly or indirectly our cities are largelydependent upon the country. The foodstuffs consumed in cities, as wellas the vast quantities of raw materials used by our manufacturingindustries, come largely from the rural districts. To some extent evenour urban population is recruited from the ranks of the country folk. Altogether, American rural life is a matter of vital concern to thenation. "Our civilization rests at bottom, " Theodore Roosevelt oncesaid, "upon the wholesomeness, the attractiveness, and thecompleteness, as well as the prosperity, of life in the country. " 291. NATURE OF THE RURLAL PROBLEM. --Contrary to popular belief, therural problem arises not so much from the actual degeneration of ruralsociety, as from the fact that many rural districts have failed toprogress as rapidly as have urban communities. Compared with hispredecessor of a century ago, the farmer of to-day is better fed, better clothed and housed, and better able to secure adequateeducation and recreation. At the same time the relatively greateradvances which urban communities have made in economic and socialactivities render the improvement of rural life highly desirable. Thespecific problem of rural life is to develop in the country economicand social institutions which are especially adapted to the farmer'sneeds. Not until this is done shall we be able to maintain on ourfarms a class of people who can make the maximum contribution toAmerican life in all of its phases. 292. THE RURAL PROBLEM IS OF RECENT ORIGIN. --The most spectaculardevelopment in American economic life has been the introduction andgrowth of the factory system. Commerce and manufactures were importantduring even the colonial period, and during the first half century ofour national history our dominant economic interest was the fosteringof manufacturing, domestic trade, and transportation. With thedevelopment of manufacturing came the growth of the cities, and withthe growth of the cities added attention was called to immigration, crime, health, and related social problems. Farm life, so familiar andapparently so healthful, was not thought of as constituting a nationalproblem until late in the nineteenth century. 293. THE CITYWARD DRIFT. --A half century ago more than three fourthsof our population was rural; to-day less than half of the people ofthe United States live in the country. Both urban and rural districtshave been steadily increasing in population since the opening of thenineteenth century, but since 1900 the city population has increasedthree times as fast as has the rural population. One reason for thismore rapid growth of the cities is that since the eighties themajority of our immigrants have flocked to the cities rather than tothe rural districts. Another reason, however, is that the countrypeople have been drifting to the towns and cities. This cityward drifthas an important bearing upon the character of rural life. 294. REASONS FOR THE CITYWARD DRIFT. --A number of factors explain thetendency of rural people to move to the cities. The perfection andwider use of farm machinery have decreased the need for farm laborers, and the excess laborers have gone to the towns and cities. The factthat urban industries offer shorter hours, better pay, and cleanerwork than does farming has attracted many young country people. Theisolation of farm life and its frequent lack of comforts have impelledmany country dwellers to move to the cities. Some country people havegone to the city in order to be near schools and churches, and inorder to have access to competent doctors and well-equipped hospitals. The craving for a more fully developed social life than many ruraldistricts afford, has been an additional cause of the cityward drift. Unfortunately, the glamour of urban life, with its spectacles and itsartificial pleasures, has also been a factor in the movement away fromthe country. 295. WHEREIN THE CITYWARD DRIFT IS DESIRABLE. --In some respects thecityward drift is a desirable development. When laborers who are nolonger needed on the farms move cityward, the cityward drift may havethe beneficial effect of removing such laborers to where they can findemployment. It should also be remembered that successful rural liferequires qualities which may be lacking in many individuals born andraised in the country. In so far as the cityward drift is composed ofsuch individuals, it may be a helpful movement, since individualsunsuited to rural life may find themselves adapted to some type ofurban life. When unneeded and unhelpful individuals are removed fromthe country, the rural population may be more efficient and moreprosperous, even though relatively more sparse. 296. WHEREIN THE CITYWARD DRIFT IS UNDESIRABLE. --In so far as thecityward drift brings to the city individuals unsuited to urbanconditions, the movement away from the country may be undesirable. Itis certainly undesirable when the individuals in question are reallysuited to rural life. The tendency of young people to move to thecities may ultimately deprive the country of its natural leaders. Certainly the colleges and factories of the cities often drain thecountry of its most able and ambitious boys and girls. The citywardmigration of such persons may strengthen the urban population, but itweakens rural society and retards the progress of rural institutions. 297. STATUS OF THE "BACK TO THE LAND" MOVEMENT. --Some reformers havesought to offset the cityward drift by an artificial "back to theland" movement. In so far as it would bring to the country personsreally able to contribute to rural life, this movement is a desirableone. In so far as it would bring to the country persons unprepared orunable to adapt themselves to rural conditions, such a movement isinjurious. On the basis of the data now available, we are warranted inconcluding that the "back to the land" movement is founded uponsentiment and caprice rather than upon sound principles. It attacksthe rural problem at the wrong end. If the natural leaders of thecountry are repelled by rural life and attracted by urban conditions, the remedy is not to create an artificial movement toward the country, but rather to make rural life so attractive that country boys andgirls will prefer it to city life. The chief question before us isthis: How can the country be made so attractive that individualsinterested in, and suited to, rural life may be encouraged to lendthemselves to its fullest development? Let us see what is being donetoward answering this question. 298. HOW THE FEDERAL GOVERNMENT IS HELPING TO MAKE RURAL LIFEATTRACTIVE. --The material prosperity of the American farmer is due, inconsiderable part, to the activities of the Federal government. Formore than a half century the Department of Agriculture hassystematically encouraged various phases of agricultural industry. TheDepartment conducts investigations and experiments designed to givefarmers helpful information concerning soils, grains, fruits, and livestock. It distributes seeds gratuitously, and attempts to encouragescientific methods among farmers. The Department issues a Year-book, aMonthly Weather Review, a Crop Reporter, and a series of Farmers'Bulletins. Among the more important subdivisions of the department arethe bureau of animal industry, the bureau of soils, the bureau ofmarkets, and the office of farm management. The work of the Departmentof Agriculture is ably supplemented by the work of the ReclamationBureau, which, under the direction of the Secretary of the Interior, is increasing the productivity of waste and arid lands. 299. THE FEDERAL FARM LOAN ACT. --The growing need of credit facilitiesamong farmers resulted in 1916 in the passage of the Federal Farm LoanAct. By the terms of this act, the United States is divided intotwelve districts, in each of which a Federal land bank is established. A Federal Farm Loan Board has general charge of the entire system, buteach Farm Loan Bank is allowed a large measure of freedom in its owndistrict in the organization of local Farm Loan Associations. A localassociation is made up of a number of farm owners, or persons about tobecome owners, who desire to borrow money. The Bank will not deal withthe individual farmer except through the local association, but when afarmer has been vouched for by this association, he may receive fromthe Bank of his district a loan at not more than six per centinterest. The Bank authorizes loans for the purchase or improvement ofland, for the purchase of live stock, and for the erection of farmbuildings. Loans must be secured by first mortgages not exceeding inamount fifty per cent of the assessed value of the land and twenty percent of the value of the improvements thereon pledged as security. Loans may run from five to forty years, and provision is made for thegradual payment, in small sums, of both principal and interest. 300. MARKETING NEEDS OF THE FARMER. --A problem vitally affecting notonly the farmer but the urban consumer as well, has to do with themarketing of farm produce. The price of farm produce often doubles ortrebles between the farm and the urban kitchen. This is largelybecause of a cumbersome marketing system and an overabundance ofmiddlemen. Often the farmer gets entirely too little for his produce, while the city housewife pays too much for it. If the farmer is tosecure a larger return for his labor, and if the cost of foodstuffs incities is to be reduced, we must devise more efficient methods ofmarketing farm produce. There is a general agreement among experts that in the marketing offarm produce there ought to be some method of securing the coöperationof farmer, urban consumer, and government. The further improvement ofcountry roads, together with the development of trolleys, motortrucking and other means of farm-to-city transport would reducehaulage charges. The number of public markets in cities should beincreased, so that farm produce might be sold to consumers without theinterference of unnecessary middlemen. The grading and standardizationof farm products would also facilitate sale by making it unnecessaryfor prospective purchasers minutely to examine goods offered by thefarmers. In some cases farmers might advantageously sell their producedirectly to urban consumers. The coöperative marketing of farmproduce, also has the effect of reducing the number of middlemen. [Footnote: See Chapter XII, Section 116. ] One of the most important phases of marketing reform is the regulationof commission dealers. Many farmers commonly ship their produce tocommission dealers in the city. These dealers are supposed to sellthis produce and to return to the farmer the money thus secured, minusa small commission. In many instances these middlemen return to thefarmer smaller sums than market conditions entitle the farmer to. Atthe same time, commission dealers often add an excessive amount to theprice which they in turn ask of retailers and consumers. In a fewstates commission dealers handling farm produce must now be licensed. They are obliged to keep records which will enable an inspector totell whether or not they have made false returns to farmers concerningthe condition of goods on arrival, the time at which sold, and theprice secured. A dealer convicted of dishonest methods loses hislicense. The future should see an extension of this licensing system. 301. OTHER ECONOMIC NEEDS OF THE FARMER. --The economic position of thefarmer has been materially strengthened within the last forty years, yet much remains to be done before farming may be considered analtogether satisfactory and attractive occupation. Tenancy in ruraldistricts needs to be studied carefully. Tenancy is not necessarily anevil, especially where it is a step toward ownership, but its rapidincrease in this country has caused many serious problems to arise. From both the economic and the social point of view it is desirablethat farmers own their land. Tenants have no permanent interest in theupkeep of the farm or in the rural community. Where tenancy iswidespread, land and buildings deteriorate, and the development ofrural institutions is slow. Machinery is shortening the hours of labor for the farmer, andscientific farming is increasing his efficiency; nevertheless, in mostsections of the country rural life still means long hours of hardlabor for small returns. Many farmers still work ten hours a day inwinter, twelve in summer, and from thirteen to fifteen in the harvestseason. Despite this sustained effort, the perishable character of hisproduct, the uncertainty of weather conditions, and his dependenceupon commission dealers, too often jeopardize the returns to thefarmer. 302. RURAL HEALTH. --We have noticed that in some cases people havemoved to the city because in the country doctors tend to be bothscarce and poorly trained, while frequently hospitals areinaccessible. Recently a number of influences are counteracting this relativebackwardness. The isolation of the rural dweller is disappearingbefore the automobile and the telephone. In many sections able doctorsare increasingly plentiful. In most rural districts which are nearlarge cities, there is now an efficient system of visiting nurses, free clinics, and health bulletins. Health campaigns are spreading thefundamental principles of sanitation into many of the outlyingdistricts also. But these measures, while helpful, are only a beginning. In the moreisolated rural sections especially, ignorance of sanitary methods isstill a serious evil. Many rural dwellers still rely upon traditionalbut ineffective remedies for common complaints. Quacks having nostrumsand injurious patent medicines to sell often prey upon ruralcommunities in which there is no adequate provision for doctors, nurses, and hospitals. Rural diet is often so heavy as to encouragestomach disorders. Farmhouses are in many cases poorly ventilated insummer and overheated in winter. Stables and stock pens are invariablyso close to the farmhouse as to render difficult the protection of thedwelling against flies and mosquitoes. 303. THE RURAL SCHOOL. --The chief educational institution in ruraldistricts has long been the small district school, inadequatelysupported and often inefficiently conducted. But recently rural education has shown many signs of improvement. Inmost sections of the country the development of farm machinery has soreduced the amount of manual labor on the farm that rural children areenabled to remain in school for a longer period than formerly. Thedistrict school is in many cases being supplanted by the consolidatedschool. Under the consolidation plan, a single large and well-equippedschool-house takes the place of a number of separate, small schools, indifferently equipped. When consolidation is accompanied by improvedmeans of transporting children to school, the advantages of the planare numerous. Because consolidation is a more economical arrangementthan the old district plan, it allows larger salaries to be offered. This in turn allows the rural school to secure a higher grade ofteacher. The trained educator is also attracted by the fact that theconsolidation of rural schools allows curricula to be standardized andenlarged. Scientific agriculture and allied subjects are slowlyfinding their way into the rural grade school. The rural high schoolis beginning to appear. In some sections of the country, on the other hand, the rural schoolis still in an unsatisfactory condition. In a number of states therural school needs a more intelligent and consistent support from thetaxpayers, in order that better teachers, more and betterschoolhouses, and better working equipment may be provided. In manysections of the country there is very little understanding of theadvantages of school consolidation and the necessity of more adequaterural education. It is desirable that rural schools be more closelycorrelated with the admirable work being done by experiment stationsand agricultural colleges. The agricultural press might well coöperatewith the rural schools in attacking the problems of country life. Without doubt the rural school curriculum should place more emphasisupon practical agriculture and other subjects which will demonstratethe dignity and attractiveness of rural life. Finally, it is desirablethat an increasing use be made of the schoolhouse as a social center. 304. THE RURAL CHURCH. --The rural church, though an older institutionthan the rural school, is advancing less rapidly. In many sections thecityward drift has drained the able ministers to the city, leavinginferior men to carry on the work of the rural church. Other ruralsections have never had the benefit of an able clergy. In every partof the country it often happens that country ministers are not onlyinadequately trained, but are uninterested in rural problems. One of the greatest needs of the American farming community, therefore, is for a vitalized church. In many places rural districtsare overchurched, and there is great need of some such consolidationas has been developed among rural schools. This development would sodecrease the number of ministers needed that higher salaries could beoffered. This, in turn, would attract more highly trained ministers tothe country. It is also desirable that rural ministers be trained to akeener appreciation of the economic and social problems of thecountry, with a view to making religion a practical help in solvingthe problems of everyday life. An efficient and vitalized church couldadvantageously be used as a focal point for the development of everyphase of rural community life. 305. ISOLATION THE MENACE OF RURAL LIFE. --Isolation may be said to bethe menace of rural life, as congestion is the menace of urban life. In many out-of-the-way rural districts isolation has resulted in moralinertia and intellectual dullness. Isolation has weighed particularlyhard upon the farmer's wife. Often she is called upon, not only torear a large family, but to cook and keep house for hired men, raisepoultry and garden stuff, and even to help in the fields during theharvest season. In spite of this deadening routine, she has had fewerchances than the farmer to go to town, to meet people, or otherwise tosecure a share of social life. 306. COMMUNITY SPIRIT IN THE COUNTRY. --In view of the injuriouseffects of rural isolation, it is encouraging to note the beginningsof a genuine community spirit in country districts. To a considerableextent this development is the result of improved means oftransportation and communication. The coming of the automobile, thetelephone, and the trolley, the development of the rural freedelivery, the parcel post, and the agricultural press, --all thesefactors have been important. The farmer has been enabled to share moreand more in the benefits of city life without leaving the farm. Evenmore important, perhaps, improved methods of transportation andcommunication have stimulated social intercourse among farmers. Coöperation in church and school work has been encouraged. Clubs andcommunity centers are more practicable where farmers make use of theautomobile and the telephone. The fair and the festival are alsoproving to be admirable methods of developing the coöperative spiritin rural life. The growing realization among students of rural life that a strong andconstructive community spirit is not only desirable but possible, isencouraging an interest in rural problems. The development of such aspirit must ultimately stimulate a healthy social life in the country, with a resultant increase in health and prosperity, not only for thefarmer but for the nation as a whole. QUESTIONS ON THE TEXT 1. What is the significance of rural life? 2. What is the nature of the rural problem? 3. Why is the rural problem of recent origin? 4. What is meant by the cityward drift? 5. To what extent is this drift desirable? To what extent is itundesirable? 6. What can be said as to the "back to the land" movement? 7. How does the Department of Agriculture help the farmer? 8. What is the object of the Federal Farm Loan Act? 9. Why is the marketing of farm products a problem? 10. What are some suggestions for solving this problem? 11. Discuss the recent improvement in rural health. 12. In what way is rural health still in an unsatisfactory condition? 13. What is the purpose of consolidating the rural schools? 14. What can be said as to the condition of the rural church? 15. What is the effect of isolation upon farm life? 16. What has been the effect of improved means of transportation andcommunication upon community spirit in rural districts? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxv. Or all of the following: 2. Butterfield, _The Farmer and the New Day_, chapter iii. 3. Carney, _Country Life and the Country School, _ chapter i. 4. Carver, _Rural Economics, _ chapter vi. 5. Ely, _Principles of Economics, _ chapter xxxix. QUESTIONS ON THE REQUIRED READINGS 1. In what way is the rural problem threefold? (Butterfield, pages 30-31) 2. What changes have taken place since 1850 with regard to the size ofAmerican farms? (Ely, pages 596-603. ) 3. What problem arises in connection with the control of land in thiscountry? (Butterfield, pages 40-41. ) 4. Is absentee landlordism a danger in American rural life? (Ely, page605. ) 5. How could farm management in this country be improved?(Butterfield, pages 42-45. ) 6. Discuss coöperation among Danish farmers. (Carver, pages 357-358. ) 7. Discuss agricultural credit in Europe. (Ely, pages 611-613. ) 8. In what way is rural local government a problem? (Butterfield, page47. ) 9. Name an important defect of the rural church. (Carver, pages 343-344. ) 10. What are the chief organizations which are aiding in thereconstruction of the rural community? (Carney, page 13. ) 11. What is the importance of community building in the country?(Carney, pages 9-10. ) 12. What is the importance of federating all of the socialorganizations of a rural community? (Carney, page 16. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Nature of the cityward drift in your section. 2. Extent to which there is a "back to the land" movement in yoursection. 3. Work of the Federal Farm Loan Bank of your district. If possible, interview a farmer as to the advantages and disadvantages of theFederal Farm Loan system. 4. Work of the agricultural college in your state. 5. Use of the automobile by farmers in your locality. 6. Food markets in your neighborhood. 7. Draw up a program for reducing the cost of food distribution inyour section. (Consult King, _Lower Living Costs in Cities_, chapterxiii. ) II 8. Transportation in rural districts. (Vogt, _Introduction to RuralSociology_, chapter iv; Gillette, _Constructive Rural Sociology_, chapter ix; Waugh, _Rural Improvement_, chapter iii. ) 9. The marketing of farm products. (Weld, _The Marketing of FarmProducts; Annals_, vol. Xlviii, pages 91-238; King, _Lower LivingCosts in Cities_, chapter x; Harris, _Coöperation, the Hope of theConsumer_, chapter iii. ) 10. Tenancy. (_Annals_, vol. Xl, pages 29-40; Vogt, _Introduction toRural Sociology_, chapter v. ) 11. Rural hygiene. (Ogden, _Rural Hygiene_; Gillette, _ConstructiveRural Sociology_, chapter xi; Vogt, _Introduction to Rural Sociology_, chapters vii and viii. ) 12. Immigrant communities in the country. (_Annals_, vol. Xl, pages69-80. ) 13. Rural housing. (_Annals_, vol. Li, pages 110-116; Waugh, _RuralImprovement_, chapter x. ) 14. The country town. (Anderson, _The Country Town_. ) 15. The rural school. (Bailey, _The Training of Farmers_, pages 173-194; Vogt, _Introduction to Rural Sociology_, chapter xv; Galpin, _Rural Life_, chapter vii; King, _Education for Social Efficiency_, chapters iii and iv; Butterfield, _The Farmer and the New Day_, chapter vii. ) 16. The country church. (Butterfield, _The Country Church and theRural Problem_; Gill and Pinchot, _The Country Church_; Carney, _Country Life and the Country School_, chapter iii; Gillette, _Constructive Rural Sociology_, chapter xv; Vogt, _Introduction toRural Sociology_, chapters xvii and xviii; Galpin, _Rural Life_, chapter xi; _Annals_, vol. Xl, pages 131-139. ) 17. The Grange. (Carney, _Country Life and the Country School_, chapter iv. ) 18. The farmer in politics. (Vogt, _Introduction to Rural Sociology_, chapter xii. ) 19. Clubs and organizations in rural districts. (Gillette, _Constructive Rural Sociology_, chapter xiii; Waugh, _RuralImprovement_, chapter v; Galpin, _Rural Life_, chapters viii, x; Vogt, _Introduction to Rural Sociology_, chapter xiv; _Annals_, vol. Xl, pages 175-190. ) 20. The Country Life movement. (Bailey, _The Country Life Movement inthe United States_; Carney, _Country Life and the Country School_, chapter xiii; Gillette, _Constructive Rural Sociology_, chapter viii. ) FOR CLASSROOM DISCUSSION 21. The relative advantages of life in the city and life in thecountry. 22. Should immigrants be encouraged to settle in rural districts? 23. Advantages and disadvantages of tenancy from the standpoint of therural community. 24. To what extent should country people copy the social institutionsof the city rather than develop institutions of their own? CHAPTER XXVI EDUCATION 307. THE MEANING OF EDUCATION. --A half century ago education mighthave been defined as the process of acquiring certain types of bookknowledge which contributed to the culture of the individual. Morerecently the concept of education has been broadened and deepened. Present-day education aims not only to add to the culture of theindividual, but to vitalize the community as well. Education is nolonger limited to the schoolroom, but includes all agencies andactivities which in any way help toward a fuller and more responsiblecitizenship. Education is no longer confined to infancy and youth, butis a life-long process. Our educational system no longer assumes thatthe needs and capacities of all pupils are similar, but attempts so todiversify training that each individual will be enabled to develop hispeculiar powers and to contribute to American life in the manner bestsuited to his individual ability. Taken in its widest sense, educationhas seven great objectives. These are health, command of fundamentalprocesses (such as reading, writing, and arithmetic), worthy home-membership, vocation, citizenship, worthy use of leisure, and ethicalcharacter. [Footnote: These objectives have been formulated by theNational Commission on the Reorganization of Secondary Education. ] 308. EDUCATION AND DEMOCRACY. --Two centuries ago the education of themasses was politically a matter of small concern, for most governmentswere conducted by a narrowly restricted class. But in a democracyeducation is fundamental. The idea that the masses should governthemselves is an appealing one, but before self-government is safe acomprehensive educational system must have made substantial inroadsupon illiteracy and ignorance. Not only must the citizen of ademocracy be individually capable, but his capacity to coöperate withhis fellows must be large. Under an undemocratic government the peoplerely upon their rulers; in a democracy they must rely upon their ownjoint efforts. From both an individual and a social standpoint, therefore, democracy demands more of its educational system than doesany other form of government. 309. DEVELOPMENT OF EDUCATION IN THE UNITED STATES. --Education was animportant concern in most of the American colonies, and especially soin New England. After 1800 the common school system was extendedrapidly, the district school passing westward with the pioneermovement. Educational facilities continued to expand and to diversifyuntil at the end of the Civil War period there were more than sevenmillion children in the elementary schools of this country. The periodfollowing the Civil War also saw the beginnings of the high school, acharacteristic American educational institution which arose to takethe place of the older Latin grammar schools and the privateacademies. Normal schools for the training of teachers, and collegesand universities for higher education, developed rapidly after 1880. Today there are more than three quarters of a million teachers in theUnited States, instructing more than 25, 000, 000 students ininstitutions ranging from kindergarten and elementary schools tocolleges and universities. 310. MERITS OF OUR EDUCATIONAL SYSTEM. --The merits of our educationalsystem are of great significance. We are definitely committed to theideal of an educated citizenry. It has been the policy of the severalstates to establish and maintain free public schools. Schoolattendance is compulsory, on full or part time, for children up to acertain age, the age varying from state to state. No public school issectarian, the freedom of religious thought and action guaranteed bythe Federal Constitution having been continued into our public schoolsystem. The public schools stimulate democratic tendencies by bringingtogether large masses of children from all walks of life. Our schoolsystem likewise has an Americanizing influence upon a large number offoreigners because their children study in our public schools and thencarry into their homes the influence of the school. Within the lastquarter of a century our schools have greatly extended theirfunctions, becoming, in many cases, genuine community centers. 311. FINANCIANG THE SCHOOLS. --The substantial advances made inAmerican education during the last century are a cause forcongratulation. At the same time, our standards of education arerising so rapidly that a number of educational problems are becomingacute. An important problem has to do with the financial support of ourrapidly expanding school system. In many states the schools areinadequately supported by the tax payers. In some of these states thepublic schools are not readily accessible to large numbers ofchildren, while in the schools that are accessible the equipment isoften inadequate to the demands made upon it. In many states teachersstill receive insufficient salaries. Our schools ought not to suffer from lack of funds. Ours is therichest country in the world, and our school system is one of the mostvital and fundamental of our institutions. Often the failure oftaxpayers properly to support the schools is due to either or both ofthe following causes: First, failure to appreciate the importance ofeducation; second, the lack of accessible wealth as a basis oftaxation. The first objection must be met by so perfecting oureducational system that taxpayers will be convinced that moneyinvested in schools means large profits in the form of a moreefficient and prosperous citizenship. The second objection calls forthe reform of our taxation system. 312. CONTROL OF EDUCATION IN THE UNITED STATES. --In the United Stateseducation is a state rather than a national function. There is noFederal administration of schools, each state having its independentsystem. Each state has a system of elementary education, and nearlyevery state has a secondary or high school system. Nearly all of thestates also have state universities in which instruction is eitherfree or is available at a nominal charge. The public schools aresupported chiefly by local taxes and are controlled mainly by thelocal authorities. In most states local outlays are supplemented, to agreater or less degree, by state contributions. State support isalmost always accompanied by a measure of state control, though theextent of this control varies widely among the several states. 313. THE QUESTION OF UNIFORM STANDARDS. --To what extent should therebe uniformity within our school system? We have no national system ofeducation, and the lack of coördination between the educationalsystems of the several states has many undesirable features. Educational standards vary widely from state to state, and often fromcounty to county within the same state. The confusion growing out ofthis situation has given rise to the demand for the systematization orstandardization of our school facilities. The question is a difficult one. Most authorities believe thateducation ought not to be centralized under the Federal government, but ought, rather, to remain a state function. But even though it isnot desirable to allow the Federal government to take over the chiefeducational powers of the state, it is believed by many that somenational agency might render valuable service in coördinating theeducational programs of the several states. At present many educatorsfeel that the Federal government should insist upon minimum standardsin education in the various states of the Union. Standardization within each state is considered desirable by mostauthorities. All of the educational facilities of a given commonwealthprobably ought to be coördinated under some supervising state agency. The administrative ideal in state education is so to systematize theschools of the state that they will be bound together by a commonpurpose, guided by the same set of established principles, anddirected toward the same social ends. 314. SCHOOL ATTENDANCE. --A serious defect of our educational systemarises in connection with school attendance. In many states the schoolattendance laws are laxly enforced. It is claimed that at no one timeis more than three fourths of our school population enrolled in theschools. Of those who do comply with the school attendance laws, thereis a considerable percentage which cannot acquire an adequateeducation within the limits of the compulsory school period. Onlyabout one third of the pupils who enter the first year of theelementary school reach the four-year high school, and only about onein nine is graduated. Of those who enter high school, about one thirdleave before the beginning of the second year, about one half are gonebefore the beginning of the third year, and fewer than one third aregraduated. Within the last decade there has been a marked tendency among theseveral states to enforce school attendance laws more strictly. Noless encouraging is the growing belief among educators that the schoolattendance period ought so to be adjusted that every child will beguaranteed the working essentials of an education. There is gravedoubt as to the wisdom of raising the minimum age at which childrenmay withdraw from school, but at least greater efforts ought to bemade to keep children in school at least for part-time schoolingbeyond the present compulsory period. As will be pointed outpresently, much is already being done in this direction. 315. EDUCATION AS PREPARATION FOR DAILIY LIFE. --It is sometimes saidthat our educational system neglects practical activities for subjectsthat have no immediate connection with the problems of daily life. Many citizens have thoughtlessly condemned the whole program ofeducation because they have observed that particular schools haveallowed pupils to go forth with a fund of miscellaneous knowledgewhich neither helps them to get a better living, nor aids them inperforming the duties of citizenship. On the basis of these and alliedconsiderations, there is a growing demand that education be made more"practical. " There is much to be said for and against this attitude. Someenthusiasts are apparently carrying the demand for "practical"education too far. The growing importance in our industrial life ofefficiency and practical training should not blind us to the fact thateducation is cultural as well as occupational or vocational. Theeducation of an individual is not estimated alone by the degree towhich he succeeds in practical affairs, but as well by the extent towhich he shows evidence of training in the appreciation of moral, artistic, and literary values. It is sometimes difficult to see thatthe study of literature, ancient languages, and similar subjects ispreparation for life, and yet wise training in these fields may proveas important as studies which aid more directly and immediately ingetting a living. On the other hand, our educational system must take note of thegrowing importance of industrial activities. Since education ispreparation for life, the school must accommodate itself to thechanges which are now taking place in our economic and socialorganization. As modern society becomes more complex, more tinged withindustrial elements, more a matter of coöperation and interdependence, education must become more highly evolved, more attentive tovocational needs, and more emphatic in the stress which it lays uponthe actual duties of citizenship. The more complex the needs of daily life, therefore, the greater thenecessity of shifting emphasis in education. But in thus shifting theemphasis in education we must be careful not to disturb the balancebetween cultural and "practical" subjects. To discriminate betweenwhat should be taught and what should be omitted from the curriculum, to retain the finest elements of our cultural studies, but at the sametime to fit our citizens to meet the demands of office, shop, andfactory, --these are the tasks of the educator. 316. VOCATIONAL EDUCATION. --Vocational training is one of the mostsignificant developments in modern education. This type of educationis designed to train the young person to earn a good living in thatbranch of work for which he seems best fitted. Some of the supportersof vocational education believe that this specialized form of trainingought to be commenced very early and in connection with the regularcurriculum. Others think that vocational education should not beattempted until the child has been given enough generalized trainingto enable him properly to perform the fundamental duties ofcitizenship. But whatever its relation to the curriculum, vocational education isof great significance. If combined with vocational guidance it notonly prevents the boy or girl from aimlessly drifting into anunskilled occupation, but it singles out for special attentionchildren who show special aptitude for particular trades andprofessions. Vocational education for the blind, the deaf, thecrippled, and the otherwise disabled is social service of the finestand most constructive type. 317. FEDERAL ENCOURAGEMENT OF VOCATIONAL EDUCATION. --In February, 1917, Congress passed the Smith-Hughes Act, establishing a FederalBoard for Vocational Education. This board promotes vocationaleducation in coöperation with the several states, and administers theFederal aid granted to the states under the Act. Each state acceptingthe provisions of the Act must provide a state board to control asystem of vocational schools. Evening, part-time, and continuationschools offer instruction in agriculture, industry, commerce, transportation, and the professions. Each state must also agree toappropriate, either through the state or locally, an amount of moneyfor teachers' salaries, equivalent to the sum received from theFederal board. Such states must also agree to provide proper buildingsand meet the running expenses of the system. In the first year underthis Act, the Federal appropriations amounted to more than a millionand a half dollars. This sum is to be increased annually until theyear 1925-1926, when the states will receive $7, 000, 000 from theFederal government in support of vocational education. 318. LIMITATIONS OF THE CONVENTIONAL SCHOOL TERM. --A few decades ago, the typical school in an American city offered instruction to certainclasses of young people between nine o'clock in the morning and threeor four o'clock in the afternoon, for from 150 to 180 days a year. During the rest of the time the schoolhouse was idle. This policy greatly restricted the education of important groups ofpeople. Adult immigrants were barred from the elementary publicschools. Persons desiring educational guidance in special fields oftenfound that the school offered them no help. Cripples, men and womenemployed in the daytime, and other individuals who found it impossibleor inconvenient to attend school during the conventional time limits, were restricted in educational opportunity. Many boys and girls whodrop out of school because of the necessity of going to work, do sobefore their education has been completed. For most of these classes, the inability to take advantage of the regular school term has meantthe denial of adequate education. 319. WIDER USE OF THE SCHOOL PLANT. --Recently the "wider use of theschool plant" movement is helping these classes to secure or continuetheir education. For unassimilated immigrants, day and evening coursesin citizenship are now provided in many cities and towns. In manycities vacation schools have been established for the convenience ofchildren who have failed in their studies, or who are able and willingto make unusual progress in various subjects. For those who work byday there is often a chance to go to school by night. For those whofind it inexpedient to leave their homes, there are, in many places, travelling libraries and correspondence courses. In some westernstates the farmer now has an opportunity of taking extension coursesfrom the State university during those seasons in which his work islightest. For pupils who are under the necessity of partially orentirely supporting themselves, some cities now have part-time or all-around-the-year schools. 320. THE SCHOOL AS A SOCIAL CENTER. --Closely associated with themovement to extend school facilities to those who would ordinarily bedebarred from them, is the movement toward making the school a socialcenter. Many city and some rural schools now provide free to thegeneral public lectures on science, art, literature, and business. Moving pictures, dramatics, and other forms of entertainment arebecoming a regular feature of this type of school work. In manyschools the gymnasiums are available to the public under reasonablerestrictions. Folk singing and dancing are being encouraged innumerous schools. Schoolrooms devoted by day to regular school coursesare in many places being used during the evening for the discussion ofpublic questions. In these and other ways the school is becoming acenter of life for the community. It is extending into the homes ofthe people and is becoming the instrument of the community rather thanof a particular group. 321. EDUCATION AND SOCIAL PROGRESS. --We may sum up the problems so fardiscussed in this text by noting that their solution calls for threedifferent types of treatment. First, we must strike at the root of poverty by giving everyindividual just what he earns, by making it possible for everyindividual to earn enough to support himself and his family decently, and by teaching him to spend his income wisely and economically. Second, wise and careful laws must be passed for the purpose ofcorrecting and lessening the social defects of American democracy. Third, education must be relied upon to render the individual able andwilling to do his duty toward himself and his country. The boys andgirls of to-day are the voters and home-makers of to-morrow, and theresponsibility of preparing those boys and girls for the efficientconduct of community life rests almost entirely upon the school. Thuseducation is one of the most basic factors in social progress. Neithera reorganized economic system, nor the most carefully drawn laws onsocial questions will solve the problems of American democracy untilthe individual citizen is trained to a proper appreciation of hisresponsibilities toward himself and toward his country. QUESTIONS ON THE TEXT 1. What is the scope of education? 2. What is the relation of education to democracy? 3. Trace briefly the development of education in this country. 4. Enumerate the chief merits of our educational system. 5. What problem arises in connection with financing the schools? 6. Explain the failure of some taxpayers properly to support theschools. 7. Discuss the control of education in this country. 8. Outline the problem of uniform educational standards. 9. To what extent is school attendance a problem? 10. What are the chief tasks of the educator? 11. Discuss the purpose of vocational education. 12. What is the nature of the Smith-Hughes act? 13. What are the limitations of the conventional school term? 14. What is meant by the "wider use of the school plant" movement? 15. To what extent is the school becoming a social center? 16. What is the relation of education to social progress? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxvi. Or allof the following: 2. Cubberley, _Changing Conceptions of Education_, all. 3. Guitteau, _Government and Politics in the United States_, chapterxviii. 4. McMurry, _How to Study_, part i. 5. Perry, _Wider Use of the School Plant_, chapter i. QUESTIONS ON THE REQUIRED READINGS 1. Discuss briefly the progress made in education since the Civil War. (Cubberley, pages 38-42. ) 2. Name an important defect of our educational system as it existed inthe eighties. (Perry, page 3. ) 3. Discuss the development of the high school. (Guitteau, pages 174-175. ) 4. To what extent does the Federal government aid State education?(Guitteau, page 176. ) 5. Compare briefly the four types of school administration. (Guitteaupages 177-180. ) 6. What are the chief sources of school revenues? (Guitteau, pages182-183. ) 7. What has been the effect of immigration upon our educationalsystem? (Cubberley, pages 14-15. ) 8. What is the function of the vacation school? (Perry, pages 6-7. ) 9. What is meant by the problem of leisure time? (Cubberley, page 20. ) 10. Outline briefly the present tendencies in education. (Cubberley, pages 49-69-) 11. Outline the principal factors in study. (McMurry, pages 15-23. ) TOPICS FOR INVERSTGATION AND REPORT I 1. Trace the development of public school education in your state. 2. Classify the types of schools in your state. 3. Draw up a list of the more important provisions in your stateconstitution regarding education. 4. Sources of school revenues in your community. 5. State supervision of the public schools in your commonwealth. 6. Influence of the Smith-Hughes act upon education in your state. 7. Use of the school as a social center in your community. 8. The meaning of education. (Butler, _The Meaning of Education_;Henderson, _What is it to be Educated?_ Hadley, _The Education of theAmerican Citizen_; Baldwin, _The Relation of Education toCitizenship_. ) 9. The beginnings of American education. (Cubberley, _Public Educationin the United States_, chapter ii. ) 10. The reorganization of elementary education. (Cubberley, _PublicEducation in the United States_, chapter x. ) 11. Education through play. (Curtis, _Education through Play_. ) 12. The use of leisure time. (_Annals_, vol. Lxvii, pages 115-122. ) 13. Wider use of the school plant. (Cubberley, _Public Education inthe United States_, chapter xiii; _Annals_, vol. Lxvii, pages 170-202. Perry, _Wider Use of the School Plant_. ) 14. The relation of the school to the community. (Dewey, _Schools ofTo-morrow_, chapter vii. ) 15. Physical education. (Sargent, _Physical Education_. ) 16. The education of Helen Keller. (Keller, _The Story of My Life_. See also an encyclopedia. ) 17. The education of the crippled child. (Hall and Buck, _Handicraftsfor the Handicapped_. ) 18. Education for efficiency. (Eliot, _Education for Efficiency_;Davenport, _Education for Efficiency_. ) 19. Vocational education. (Taylor, _A Handbook of VocationalGuidance_; Bloomfield, _The Vocational Guidance of Youth_; Leake, _Industrial Education, Its Problems, Methods and Danger_. ) 20. Choosing a vocation. (Parsons, _Choosing a Vocation_. ) 21. The United States Bureau of Education and the immigrant;(_Annals_, vol. Lxvii, pages 273-283. ) 22. Education and social progress. (Ellwood, _Sociology and ModernSocial Problems_, chapter xvi. ) FOR CLASSROOM DISCUSSION 23. Do grammar school graduates who fail to enter high school stoptheir education at this point because of poverty, because of theattraction of industry, or because of dissatisfaction with school? 24. The question of free text books. 25. The question of uniform text books throughout your state. 26. At what point in the school curriculum should vocational educationbe begun? 27 How are ancient languages, ancient history and the fine artshelpful in daily life? 28. The question of a more intensive use of your school building as asocial center. PART IV--AMERICAN POLITICAL PROBLEMS A. SOME ECONOMIC FUNCTIONS OF GOVERNMENT CHAPTER XXVII PUBLIC INTEREST IN BUSINESS: REGULATION 322. NECESSITY OF PUBLIC INTEREST IN BUSINESS. --Although individualscarry on business primarily for their own ends, the economicactivities of men affect not only themselves, but the community aswell. If every individual voluntarily confined his attention to thoseforms of business which strengthened the community as well as addingto his own prosperity, there would be little need for laws regulatingthe conduct of business. But because experience has shown that somepersons will seek to benefit themselves in ways that react to theinjury of the community, it becomes necessary for law to adjustprivate and public interests. A community cannot remain indifferent tothe economic activities of its citizens. Public interest in businessis a fundamental necessity, if the community is to be safeguardedagainst the abuses of free enterprise. 323. NATURE OF PUBLIC INTEREST IN BUSINESS. --In general, the object oflaws regulating business is either to encourage helpful businessmethods, or to discourage harmful business methods. A good deal oflegislation has been designed positively to encourage helpful businessmethods, yet it remains true that the most significant of ourindustrial laws have been aimed primarily at the discouragement ofharmful business. A fundamental American ideal is to insure to theindividual as much freedom of action as is consistent with the publicinterest. Thus we believe that if harmful business is controlled orsuppressed, private initiative may be trusted to develop helpfulbusiness methods, without the aid of fostering legislation. In thisand the following chapter, therefore, we may confine our attention tolegislation designed to suppress harmful business methods. 324. THE NATURE OF MONOPOLY. --We may begin the discussion by inquiringinto the nature and significance of monopoly. Under openly competitive conditions the free play of supply and demandbetween a number of producers and a number of prospective consumersfixes the price of a commodity. In such cases consumers are protectedagainst exorbitant prices by the fact that rival producers willunderbid each other in the effort to sell their goods. But if the supply of a good, say wheat, is not in the hands of severalrival producers, but is under the control of a unified group ofpersons, competition between the owners of the wheat is suppressedsufficiently to enable this unified group more nearly to dictate theprice for which wheat shall sell. In such a case a monopoly is said toexist. Complete control of the supply of a commodity is rare, even forshort periods, but modern business offers many instances ofenterprises which are more or less monopolistic in character. The essential danger of monopoly is that those who have securedcontrol of the available supply of a commodity will use that controlto benefit themselves at the expense of the public. By combining theirindividual businesses, producers who were formerly rivals may securethe chief advantage of large-scale management. That is to say, thecost of production per unit may be decreased, because several combinedplants might be operated more economically than several independentconcerns. If the cost of production _is_ decreased the combiningproducers can afford to lower the price of their product. But if theyare practically in control of the entire supply, they will not lowerthe price unless it serves their interests to do so. Indeed it is morelikely that they will take advantage of their monopoly to raise theprice. 325. TYPES OF MONOPOLY. --Monopolies are variously classified, but forour purpose they may be called either _natural_ or _unnatural_. A _natural_ monopoly may exist where, by the very nature of thebusiness, competition is either impossible or socially undesirable. Examples of this type of monopoly are gas and water works, streetrailways, steam railways, and similar industries. These will bediscussed in the next chapter. Where an _unnatural_ monopoly exists, it is not because the essentialcharacter of the business renders it unfit for the competitive system, but because competition has been artificially suppressed. Thetraditional example of an unnatural monopoly is that form of large-scale combination which is popularly known as a trust. 326. ORIGIN OF THE TRUST. --After the Civil War, rivalry in manyindustries was so intense as to lead to "cutthroat" competition and aconsequent reduction in profits. For the purpose of securing theadvantages of monopoly, many previously competing businesses combined. In 1882 John D. Rockefeller organized the Standard Oil Company, thefirst trust in this country. The plan drawn up by Mr. Rockefellerprovided that the owners of a number of oil refineries should placetheir stock in the hands of a board of trustees. In exchange for thisstock, the owners received trust certificates on which they were paiddividends. Having control of the stock, the trustees were enabled tomanage the combining corporations as one concern, thus maintaining aunified control over supply, and opening the way to monopoly profits. 327. PRESENT MEANING OF THE TERM "TRUST. "--The plan initiated by Mr. Rockefeller was so successful that other groups of industries adoptedit. After 1890 the original trust device was forbidden by statute, andthe _trust proper_ declined in importance. But there continued to be alarge number of industrial combinations which, under slightlydifferent forms, have secured all of the advantages of the originaltrust. In some cases previously competing corporations have actuallyamalgamated; in still other cases, combining concerns have secured theadvantages of monopoly by forming a holding company. A holding companyis a corporation which is created for the express purpose of "holding"or controlling stock in several other corporations. This the holdingcompany does by buying a sufficient amount of the stock of thecombining concerns to insure unity of management and control. Sincethe holding company and similar devices secure the chief advantages ofthe original trust, the word "trust" is now used to designate anyclosely knit combination which has monopolistic advantages. 328. GROWTH OF THE TRUST MOVEMENT. --The trust movement developedrapidly after 1882. There were important combinations in the oil, tin, sugar, steel, tobacco, paper, and other industries. By 1898 there hadbeen formed some eighty trusts, with a total capitalization of about$1, 000, 000, 000. At the beginning of 1904 the number of trusts exceededthree hundred, while their combined capital totaled more than$5, 000, 000, 000. The largest single trust was the United States SteelCorporation, which was capitalized at almost a billion and a halfdollars. At the beginning of 1911, in which year the Supreme Court ofthe United States ordered two important trusts to dissolve, thecombined capital of the trusts was probably in excess of$6, 000, 000, 000. 329. ABUSE OF POWER BY THE TRUSTS. --Trusts have often abused theirmonopolistic powers. They have often used their wealth to corruptlegislatures and to attempt to influence even the courts, in theeffort to prevent laws and court decisions from restricting theirmonopoly. The corruption of railway corporations and of politicalparties has been partly due to the evil influence of the trusts. Trusts have often crushed out independent concerns that endeavored tocompete with them. This has been accomplished, partly by inducingrailroads to discriminate against independent concerns and in favor ofthe trusts, partly by cutting prices in competitive markets untilindependent concerns were crushed out, and partly by the use ofbribes, threats, and other unfair methods. After competition had beensuppressed, the trusts took advantage of their monopoly to raiseprices on their products, thus imposing a heavy burden upon thepublic. 330. THE SHERMAN ANTI-TRUST ACT. (1890. )--During the eighties a numberof states attempted to control the trust movement. But the Federalgovernment has exclusive jurisdiction over interstate business, andfor this reason the action of the states was limited to the control ofthe relatively unimportant trust business lying entirely within theirrespective borders. The fact that an increasing proportion of trustbusiness was interstate in character stimulated interest in Federalanti-trust legislation, and in 1890 the Sherman Anti-trust Act waspassed. This Act declared illegal "every contract, combination in theform of trust or otherwise, or conspiracy, in restraint of trade orcommerce among the several States, or with foreign nations. " 331. FAILURE OF THE SHERMAN ACT. --For more than twenty years after itspassage, the Sherman Act did little to curb the growth of the trusts, indeed, the most marked tendency toward trust formation occurred_after_ 1890. Numerous suits were brought under the Act, but thelukewarm attitude of the courts rendered difficult the administrationof the law. After 1911 the courts held that the restraint of trade wasillegal if "unreasonable, " but few juries could be found that couldagree upon the difference between a "reasonable" and an "unreasonable"restraint of trade. Lastly, combinations which had been organizedunder the original trust plan were not disheartened by court decreesordering them to dissolve, but reorganized under some device which waspractically as effective as the trust plan, but which did nottechnically violate the Sherman act. 332. FURTHER LEGISLATION IN 1914. --Finally in 1911 the governmentsucceeded in dissolving the Standard Oil Company and the AmericanTobacco Company, two of the largest trusts in the country. Thissuccess encouraged the Department of Justice to institute other suits, and stimulated such general interest in the trust problem that in 1914Congress passed two new Anti-trust Acts. These were the Clayton Actand the Federal Trade Commission Act. The general effect of these lawswas to strengthen anti-trust legislation by correcting some of thefundamental defects of the Sherman Act, and by still further extendingthe power of the Federal government over monopolistic combinations. 333. The Clayton Act of 1914. --The Clayton Act forbids "unjustifiablediscriminations in the prices charged to different persons, " and alsoprohibits the lease or sale of goods made with the understanding thatthe lessee or purchaser shall not patronize competing concerns. TheAct specifies a number of other practices which constituteunreasonable restraints of trade. Somewhat complicated limitations areimposed upon interlocking directorates, by which is meant the practiceof individuals being on the board of directors of differentcorporations. [FOOTNOTE: The danger of the interlocking directorate, of course, is that individuals who are directors in two or morecorporations may attempt to suppress competition between thosecorporations. This may lead to monopoly. ] The Act likewise forbids theacquisition by one corporation of stock in another corporation whenthe effect may be "to substantially lessen competition" between suchcorporations, or "to tend to create a monopoly. " 334. THE FEDERAL TRADE COMMISSION ACT OF 1914. --The second of the twoActs of 1914 created a Federal Trade Commission of five members, appointed by the President. The Commission has the power to requireannual or special reports from interstate corporations in such formand relating to such matters as it may prescribe. At the request ofthe Attorney General, the Commission must investigate and report uponany corporation alleged to be violating the anti-trust laws. The mostimportant power of the Commission is undoubtedly that of issuingorders restraining the use of "unfair methods of competition incommerce. " This clause aims at prevention rather than at punishment, and if its power is wisely used it will check monopoly in the earlystages. Most authorities claim that in this regard the work of theCommission has already proved definitely helpful. 335. THE OUTLOOK. --Since 1911, and especially since the passage of thetwo Acts of 1914, the trust situation has materially improved. Thevague and wholly inadequate powers of the old Sherman Act have beenclarified and supplemented by the more specific provisions of theClayton and Federal Trade Commission Acts. Fairly adequate machineryfor the investigation and prosecution of trusts is now provided. Thepresent laws cover not only combinations making use of the old trustdevice, but also combinations employing other methods of exercisingmonopoly control. The Federal Trade Commission Act provides forpublicity, so that public opinion may have a chance to enforce theprinciple of fair play and open competition in business. The trustproblem in the United States is not yet solved, but the carefulcontrol which we are now exercising over this type of organizationjustifies the belief that the trust evil will become less important astime goes on. 336. THE TRUST PROBLEM OF THE FUTURE. In connection with the matter ofmaking anti-trust legislation more effective, a new and pressingproblem is arising. This has to do with the necessity ofdistinguishing, first, between the legitimate and the illegitimatepractices of trusts [Footnote: Large-scale combination or managementallows important economies to be practiced. Plant can be used moreadvantageously, supervision is less costly, supplies can be purchasedin large quantities and hence more cheaply, etc. The securing of theseeconomies constitutes a legitimate feature of large-scale combinationor management. ]; and second, between combinations which aremonopolistic and combinations in which there is no element ofmonopoly. We are coming to realize a fact which in Europe has long been a matterof common knowledge, namely, that trusts are never wholly andunqualifiedly bad. The law should not aim to destroy trusts, butrather should attempt so to regulate their activities that theireconomical features will be preserved while their harmful practiceswill be suppressed. Laws should also recognize the fact that manylarge-scale combinations have in them no element of monopoly, and thatsuch combinations should be exempted from anti-trust prosecution. Indrawing up anti-trust legislation, prohibitions and restrictionsshould be as concise and as definite as possible, both in order tofacilitate the execution of the law, and in order to prevent hardshipsbeing worked upon combinations which have consistently observed therules of fair play in competitive business. QUESTIONS ON THE TEXT 1. Why is public interest in business necessary? 2. What is the nature of public interest in business? 3. What is the nature of monopoly? 4. What are the two types of monopoly? Give an example of each. 5. Describe the origin of the trust. 6. Explain clearly the meaning of the word "trust" as it is now used. 7. During what period of our history was trust development greatest? 8. In what sense have trusts abused their power? 9. What was the purpose of the Sherman act of 1890? 10. How did the act work out in practice? 11. What important development is associated with the period 1911-1914? 12. What are the main provisions of the Clayton act? 13. What is the purpose of the Federal Trade Commission act? 14. Outline the problem of the future with respect to trusts. REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxvii. Or all of the following: 2. Durand, _The Trust Problem_, chapter i. 3. Ely, _Outlines of Economics_, chapter xiii. 4. Fetter, _Modern Economic Problems_, chapter xxviii. 5. Seager, _Principles of Economics_, chapter xxv. QUESTIONS ON THE REQUIRED READINGS 1. What are the four methods by which industrial combinations havetaken place? (Fetter, pages 433-434. ) 2. What are the three types of trusts? (Durand, page 9. ) 3. What is a pool? (Durand, page 9. ) 4. Name some of the important trusts which were formed between 1890and 1899. (Fetter, pages 435-436. ) 5. Name some of the most successful trusts. (Seager, page 456. ) 6. What is the relation of trust development to the tariff? (Seager, pages 464-465. ) 7. What is the evil of over-capitalization? (Seager, pages 465-466;Ely, pages 221-223. ) 8. What are the chief advantages claimed for the trust? (Ely, pages228-230; Durand, page 28. ) 9. What are some of the devices used in "unfair competition"? (Ely, pages 239-240. ) 10. What are the three ways of dealing with the trust evil? (Durand, pages l0-11. ) 11. How has the trust evil been handled in other countries? (Ely, pages 245-246. ) 12. What can be said as to the ultimate solution of the trust problem?(Durand, page 30. ) TOPICS FOR INVESTIGATION AND REPORT I 1. The chartering of corporations in your state 2. History of anti-trust legislation in your state. 3. Outline the present laws of your state relative to monopolisticcombinations. 4. Trust development in your state, or in your section of the country. II 5. The nature of monopoly. (Ely, _Outlines of Economics, _ chapter xii;Seager, _Principles of Economics, _ chapter xxiii. ) 6. Causes of trust formation. (Van Hise, _Concentration and Control, _pages 21-25. ) 7. Purposes of trust formation. (Van Hise, _Concentration andControl, _ pages 25-31. ) 8. Forms of industrial combination. (Van Hise, _Concentration andControl, _ pages 60-72. ) 9. Text of the Sherman anti-trust act. (_Ripley, Trusts, Pools andCorporations, _ pages 484-485; Durand, _The Trust Problem, _ appendix i. ) 10. Early Supreme Court decisions relative to the Sherman act. (Ripley, _Trusts, Pools and Corporations, _ pages 506-549. ) 11. The Sherman act in actual operation. (Hamilton, _Current EconomicProblems, _ pages 433-441. ) 12. The "rule of reason. " (Ripley, _Trusts, Pools and Corporations, _pages 606-702. ) 13. Difficulty of regulating trusts. (Durand, _The Trust Problem, _chapter in. ) 14. Text of the Federal Trade Commission act. (Durand, The _TrustProblem, _ appendix in. ) 15. Relation of the Federal Trade Commission to the courts. (_Annals, _vol. Lxiii, pages 24-36. ) 16. Relation of the Federal Trade Commission to our foreign trade. (_Annals, _ vol. Lxiii, pages 67-68. ) 17. Alleged advantages of trusts. (Durand, The _Trust Problem, _chapter iv; Van Hise, _Concentration and Control, _ pages 8-21. ) 18 Trust regulation in foreign countries. (Van Hise, _Concentrationand Control_, chapter iv. ) 19. The history of some one trust, as, for example, the American SugarRefining Company, the United States Steel Corporation, the AmericanTobacco Company, or the International Harvester Company. (Consult anyavailable literature. ) FOR CLASSROOM DISCUSSION 20. What is a reasonable as opposed to an unreasonable restraint oftrade? 21. How is it possible to tell when combination has resulted inmonopoly? 22. To what extent is the mere size of an industrial organization anindication of monopoly? 23. Does monopoly always result in a higher price being asked for themonopolized article? CHAPTER XXVIII PUBLIC INTEREST IN BUSINESS: OWNERSHIP 337. BASIS OF NATURAL MONOPOLY. --The most important examples of_natural_ monopoly are found in those industries which are known aspublic utilities. Public utilities include gas and electric lightworks, waterworks, telephone and telegraph plants, and electric andsteam railways. These industries are by their very nature unsuited to the competitivesystem. This is chiefly because they operate under the principle ofdecreasing cost, that is to say, the greater the volume of businesshandled by a single plant, the less the cost of production per unit. In order to serve 100, 000 customers with gas, for example, it may benecessary to make an initial outlay of $90, 000 in plant and supplies. With this identical plant, however, the gas works could reallymanufacture gas sufficient to serve more than 100, 000. If, later, thecity grows and the number of customers using gas doubles, the gasworks, already having its basic plant, will not have to expend another$90, 000, but only, say, an additional $30, 000. This principle has the double effect of virtually prohibitingcompetition and of encouraging combination. Since a street or aneighborhood can be served with water or gas more cheaply by a singleplant than by several competing plants, competing plants tend tocombine in order to secure the economies resulting from decreasingcost and large-scale production. On the other hand, the cost ofduplicating a set of water mains or a network of street car tracks isso prohibitive as to render competition undesirable, both from thestandpoint of the utility and from the standpoint of the public. This natural tendency toward monopoly, together with the socialimportance of public utilities, has given rise to a demand thatbusinesses of this type be publicly owned. The problem of publicownership may be considered under two heads: first, the municipalownership of local utilities; and, second, the national ownership ofsteam railroads. A. MUNICIPAL OWNERSHIP 338. REGULATION OF LOCAL UTILITIES. --In many American cities it wasformerly the custom of the city council to confer valuable privilegesupon public service corporations on terms that did not adequatelysafeguard the public interest. In making such grants, calledfranchises, city councils often permitted private corporations thefree use of the streets and other public property for long periods oftime or even in perpetuity. The abuses growing out of the careless use of the franchise grantingpower have recently led to a more strict supervision of franchises topublic service corporations. In most cities, franchises are no longerperpetual, but are limited to a definite and rather short period, sayfifty years. To an increasing extent, franchises are drawn up byexperts, so that the terms of the grant will safeguard the interestsof the public. In many states there are now public service commissionsthat have the power to regulate privately owned utilities. The chiefaim of such commissions is to keep informed as to the condition of theutilities, and to fix rates and charges which the commission considersfair and reasonable. 339. ARGUMENTS FOR MUNICIPAL OWNERSHIP. --Those favoring municipalownership, as opposed to regulation, declare that the conditionsaffecting rates change so rapidly that no public service commissioncan fix rates fairly or promptly. Public ownership would save the costof regulation, in many cases a considerable item. It is maintainedthat regulation is inevitably a failure, and that in view of thesocial importance of public utilities, ownership is a logical andnecessary step. Important social gains are claimed for municipal ownership. It is saidthat where the plan has been tried, it has promoted civic interest andhas enlisted a higher type of public official. If all utilities weremunicipally owned, state legislatures and city councils would nolonger be subjected to the danger of corruption by privatecorporations seeking franchises. If utilities were owned by themunicipality, it is claimed, service and social welfare rather thanprofits would become the ideal. The public plant could afford to offerlower rates, because it would not be under the necessity of earninghigh profits. Finally, service could be extended into outlying orsparsely settled districts which are now neglected by privately ownedcompanies because of the high expense and small profits that wouldresult from such extension. 340. ARGUMENTS AGAINST MUNICIPAL OWNDERSHIP. --Other students of theproblem believe that public regulation of utilities is preferable tomunicipal ownership. Those holding this view maintain that on thewhole regulation has proved satisfactory, and that ownership istherefore unnecessary. Rather than improving the public service by enlisting a higher type ofpublic official, it is maintained, municipal ownership would increasepolitical corruption by enlarging the number of positions which wouldbecome the spoils of the political party in power. The periodicpolitical changes resulting from frequent elections in cities woulddemoralize the administration of the utilities. Under our presentsystem of government, municipal ownership means a lack of centralizedcontrol, a factor which would lessen administrative responsibility andencourage inefficiency. The opponents of municipal ownership also contend that theinefficiency resulting from this form of control would increase thecost of management. This increased cost would in turn necessitatehigher rates. Moreover, municipal ownership might increase enormouslythe indebtedness of the municipality, since either private plantswould have to be purchased, or new plants erected at public expense. 341. EXTENT OF MUNICIPAL OWNERSHIP. --Some cities have tried municipalownership and have abandoned the scheme as unworkable. In someinstances this failure has been due to the inherent difficulties ofthe case, in other instances the inefficiency of the cityadministration has prevented success. In still other cities ownershipof various utilities has proved markedly successful. Most American cities now own their own waterworks, and about one thirdof them own their own gas or electric light plants. A few cities owneither a part or the whole of their street railways. Municipalownership of public utilities is still in its infancy, but themovement is growing. 342. CONDITIONS OF MUNICIPAL OWNERSHIP. --Past experience indicatesseveral mistakes to be avoided in any future consideration of theproblem of municipal ownership. The terms upon which the city purchases a utility ought not to be sosevere as to discourage the future development of new utilities byprivate enterprise. Public ownership is practicable only when the utility has passed theexperimental stage, for governmental agencies cannot effectively carryon the experiments, nor assume the risks, so essential to thedevelopment of a new enterprise. Any discussion of public ownership ought to include a consideration ofsocial and political factors, as well as matters which are strictlyeconomic. The question of municipal ownership should be decided purely on thebasis of local conditions and for particular utilities. The successfulownership of street railways in one city does not necessarily meanthat a second city may be equally successful in operating thisutility. Nor does the successful administration of a gas works by onecity necessarily mean that the same city can effectively administerits street railways. B. NATIONAL OWNERSHIP OF RAILROADS 343. DEVELOPMENT OF RAILROADS IN THE UNITED STATES. --The railroadhistory of the United States began when the Baltimore & Ohio wasopened to traffic in 1830, but until the middle of the centurytransportation in this country was chiefly by wagon roads, rivers, andcanals. After 1850 the westward expansion and the development ofindustry throughout the country greatly stimulated railway building. Encouraged by lavish land grants and other bounties extended by bothstate and Federal governments, railroad corporations flung a networkof railroads across the continent. Local roads were transformed, byextension and consolidation, into great trunk lines embracingthousands of miles. From 9, 021 in 1850 our railway mileage increasedto 93, 267 in 1880, to 193, 345 in 1900, and to approximately 260, 000 in1922. 344. THE PRINCIPLE OF DECREASING COST. --While the rapid development ofAmerican railroads has had an inestimable effect upon our nationalprosperity, railway development has brought with it serious evils. Inorder to understand the nature of these evils, let us notice that withrailroads, as with municipal utilities, the cost per unit of productor service declines with an increase in the number of units furnished. A railroad must maintain its roadbed, depots, and terminals whetherone or an hundred trains are run, and whether freight or passengercars run empty or full. Many of the railroad's operating expenses alsogo on regardless of the volume of business. Thus the cost of handlingunits of traffic declines as the volume of that traffic increases. These circumstances influence rate-making in two ways. In the firstplace, railroads can afford to accept extra traffic at a relativelylow rate because carrying extra traffic adds relatively little to therailroad's expenses. In the second place, rates in general cannot bedefinitely connected with the expense of carrying specificcommodities, hence rates are often determined on the basis ofexpediency. This means that high rates are charged on valuablecommodities because those commodities can pay high rates, while lowrates are charged on cheap goods, because those goods cannot stand ahigh charge. This is called "charging what the traffic will bear. " 345. EVILS ATTENDING RAILROAD DEVELOPMENT. --Since many of the expensesof the railroad go on regardless of the amount of traffic carried, railroads are constantly searching for extra business. Competitionbetween railroads has tended to be very severe. Rate-wars have beencommon, because of the small cost of handling extra units of traffic. In the struggle for business, railroads once habitually offered lowrates on competitive roads or lines, and then made up for thisrelatively unprofitable practice by charging high rates on non-competitive roads. The desire for extra business, together with thepressure exerted by trusts and other large shippers, encouragedrailroads to make rates which discriminated between products, betweenlocalities, and even between individuals. The ruinous character ofcompetition often led to monopolistic combinations which proceeded tocharge the general public exorbitant rates, but which rendered poorservice. 346. EARLY STATE LEGISLATION. --During the early stages of railroaddevelopment, the railroads were generally regarded as publicbenefactors for the reason that they aided materially in thesettlement of the West. But after about 1870 the railroads began to beaccused of abusing their position. A greater degree of legal controlover the roads was demanded. The first attempts at the regulation of railroad corporations weremade by several of the states. For fifteen years various commonwealthstried to control the railroads through state railway commissions armedwith extensive powers. These commissions eliminated some of the moreglaring abuses of railroad combination, but for several reasons stateregulation was relatively ineffective. The states had, of course, noauthority over interstate business, and most railroad revenues werederived from this type of business. State laws regulating railroadswere often declared unconstitutional by the courts. Lastly, powerfulrailroad corporations often succeeded in bribing state legislatures torefrain from taking action against them. Due to these influences, state regulation was generally conceded to be a failure. 347. FEDERAL LEGISLATION. --The failure of state laws effectively tocontrol the railroads led to the enactment by Congress of theInterstate Commerce Act of 1887. This Federal act created anInterstate Commerce Commission of seven members, appointed by thePresident, and charged with the enforcement of the Act. The Act alsoprohibited discriminations, and forbade unjust and unreasonablerates. It required that railroads should make rates public, and thatthey should not change rates without due notice. Pooling wasforbidden, that is to say, railroads apparently competing with oneanother were no longer to merge or pool their combined business withthe understanding that each was to get a previously determined shareof the joint profits. The objection to pooling was that it suppressedcompetition and encouraged monopoly. In the years that followed, however, the Interstate Commerce Actchecked railroad abuses very little. The machinery of the Act was sodefective as to render difficult the successful prosecution ofoffenders. Railroad interests exerted an evil influence upongovernment officials who were attempting to enforce the Act. Theadministration of the law was also markedly impeded by the fact thatthe courts tended to interpret the Act of 1887 in such a way as tolimit the powers of the Commission. To a considerable extent discriminations and unnecessarily high ratescontinued until after the opening of the twentieth century. Then in1903 the Elkins Act revived some of the waning powers of theCommission. Three years later (1906) the Hepburn Law increased themembership of the Commission, improved its machinery, and extended andreinforced its control over rates. In 1910 the Mann-Elkins Actstrengthened the position of the Commission in several particulars. In spite of this additional legislation, however, the rather sorryrecord of railroad regulation up to the time of the World Warrepeatedly raised the question of national ownership of railroads. 348. ARGUMENTS IN FAVOR OF NATIONAL OWNERSHIP OF RAILROADS. --Thearguments in favor of national ownership of railroads are similar tothose advanced in behalf of the municipal ownership of localutilities. The failure of regulation, coupled with the social importance of therailroads, is said to render ownership imperative. Governmentownership of railroads is said to have succeeded in several of thecountries of Europe, notably in Prussia. It is believed by many that government ownership would attract a highgrade of public official. It is also thought that with the change topublic ownership the corruption of state legislatures by railroadswould cease. Since the roads would be taken out of private hands andadministered as a unit by the Federal government, discriminations andother unfair practices would cease. It is also held that under public ownership service rather thanprofits would become the ideal. Since profits would no longer benecessary, lower rates could be offered. Government ownership wouldallow the elimination of duplicating lines in competitive areas, andwould permit the extension of new lines into areas not immediatelyprofitable. Thus railroads now operated solely for private gain wouldbecome instruments of social as well as industrial progress. 349. ARGUMENTS AGAINST NATIONAL OWNERSHIP OF RAILROADS. --Opponents ofnational ownership maintain that the experience of Prussia and otherEuropean countries is no guide to railroad management in this country. Differences in political organization between this and Europeancountries, for example, render unreliable the results of publicownership in Prussia and other parts of Europe. Many opponents of government ownership contend that the elimination ofprivate control would increase, rather than decrease, politicalcorruption. Various political interests, they say, would bringpressure to bear in favor of low rates for their particular sectionsof the country. It is often maintained that the substitution of public for privateownership would discourage personal initiative because publicofficials would take little genuine interest in the railroads. It issaid that government administration of railroads would be marked bywaste and inefficiency. This would necessitate higher rates instead ofpermitting rates to be reduced. The large initial cost of acquiringthe roads is urged against public ownership, as is the gigantic taskof administering so vast an industry. A last important objection to public ownership is that it would causerates to be rigid. Rates would be fixed for relatively long periodsand by a supervisory agency, rather than automatically changing withbusiness conditions as under private ownership. This rigidity wouldforce business to adapt itself to rates, instead of allowing rates toadapt themselves to business needs. 350. GOVERNMENT CONTROL OF RAILROADS, 1917-1920. --Shortly after ourentry into the World War, the congested condition of the railroads, together with the urgent need for a unified transportation system, ledto a temporary abandonment of private control. On December 28, 1917, President Wilson took over the nation's railroads under powersconferred upon him by Congress. The roads were centralized underDirector-General McAdoo, assisted by seven regional directors whoadministered the railroads in the different sections of the country. The Act empowering the President to take over the railroads providedthat such control should not extend beyond twenty-one months after theconclusion of the treaty of peace with Germany. But there has neverbeen a well-organized movement for government ownership of railroadsin this country, and when after the signing of the armistice inNovember, 1918, the immediate return of the roads to private controlwas demanded, there was little opposition. A number of plans proposingvarious combinations of public and private control were rejected, andon March 1, 1920, the roads were returned to their former owners. 351. RESULTS OF GOVERNMENT CONTROL DURING THE WORLD WAR. --Governmentcontrol of the nation's railroads between 1917 and 1920 resulted in anumber of important economies. Repair shops were coördinated so as tobe used more systematically and hence more economically. Theconsolidation of ticket offices in cities effected a substantialsaving. The coördination of terminals allowed a more economical use ofequipment than had been possible under private control. Theunification of the various railroad systems allowed a more directrouting of freight than would otherwise have been possible. There wasalso a reduction in some unnecessarily large managerial salaries. On the other hand, the quality of railroad service declined undergovernment control. The personal efficiency of many types of railroademployees also decreased. Most important of all, there was a sharpincrease in both freight and passenger rates. The period of war-time control was abnormal, hence the record of theroads under government control during this period cannot be taken aswholly indicative of what would happen under permanent governmentcontrol in peace time. But it should be noted that, on the whole, therecord of the Railroad Administration between 1917 and 1920 was good. That the above-mentioned economies were effected cannot be denied. Moreover, the decline in service and efficiency, as well as theincrease in rates, is at least partially explained by abnormalconditions over which the Railroad Administration had no control. Thewinter of 1917-1918 was the most rigorous in railroad history. Thiscircumstance, combined with the unusually heavy demands for thetransportation of war equipment, helped to demoralize the service fromthe very beginning of the period of government control. For a numberof years previous to 1917 there had been an acute shortage of box carsand other equipment, which also helps to explain the poor quality ofservice furnished during the war. The labor force was demoralized bythe drafting for war service of many trained railroad employees. (Itis claimed that certain railroad officials sought to discreditgovernment control by hampering the administration of the roads, butthis charge cannot be proved. ) 352. THE TRANSPORTATION ACT OF 1920. --Government control in war timerevealed the true status of the railroads as nothing else could. Itwas seen that up to the period of the World War Federal legislation onrailroads had in some cases been too indulgent, but in other cases sosevere as to work a hardship upon the roads. To pave the way for afairer and more effective regulation of the nation's railroads, theTransportation Act of 1920 was passed. At present the railroads areprivately owned, but publicly regulated by the Interstate CommerceCommission, according to the provisions of the Interstate Commerce Actof 1887, the Elkins Act of 1903, the Hepburn Law of 1906, the Mann-Elkins Act of 1910, and the Transportation Act of 1920. 353. SUMMARY OF PRESENT LEGISLATION ON RAILROADS. --At the present timeall unfair discriminations are generally forbidden. But it is nowrecognized that under certain conditions a discrimination may beeconomically justified. Therefore, when the inability to levy adiscriminatory rate would work a hardship upon a railroad, theCommission is authorized to suspend the rule. Pooling is likewisegenerally forbidden, but here again the Commission may authorize thepractice at its discretion. Limitations are placed upon the power ofrailroads to transport commodities in which they are interested asproducers. All interstate rates are to be just and reasonable, and the Commissionis empowered to say what constitutes just and reasonable rates. Inorder to prevent rate wars, the Commission is now empowered to fixminimum as well as maximum rates. The Act of 1920 also gives theCommission the power to establish _intra_-state rates, where suchrates unjustly discriminate against interstate or foreign commerce. An_intra_-state rate, of course, is one which has to do only withfreight or passenger movements which begin and end within the bordersof a single state. The Act of 1920 extended government control over the railroads in anumber of important particulars. To check certain financial abuses, the Commission now has supervision over the issue of railroadsecurities. For the purpose of increasing the social value of thenation's railroads, the Act of 1920 instructs the Commission to planthe consolidation of existing roads into a limited number of systems. Another clause in the Act of 1920 provides that no railroad mayabandon lines, build new lines, or extend old ones, without theconsent of the Commission. In times of national emergency, moreover, the Commission may direct the routing of the nation's freight, withoutregard to the ownership of the lines involved. Lastly, the Act of 1920made provision for a permanent arbitration board for the settlement oflabor disputes in the railroad industry. 354. THE OUTLOOK. --In view of the defective character of regulatorylegislation previous to 1900, government ownership of railroads didnot seem unlikely. But since the acts of 1903, 1906, and 1910, andespecially since the passage of the Transportation Act of 1920, therehas been such high promise of efficient regulation as to minimize themovement toward government ownership. Not only are old abuses now morelikely to be remedied, but the Interstate Commerce Commission is nowempowered to relieve the roads of many undeserved burdens. Especiallyis the Commission keenly appreciative of the necessity of stabilizingthe credit of the railroads. Until this is done the investing publicwill have little confidence in the railroad business, and the roadswill continue to be inadequately financed. Perhaps the greatest problem now before the Commission is to completethe "physical valuation" of the railroads begun in 1913. Thisvaluation aims to discover, by investigations conducted by expertappraisers, the actual value of all railroad property in the UnitedStates at the present time. On the basis of this valuation theCommission believes that it can estimate the probable amount ofinvested capital which the railroads represent. After this has beendone, the Commission can calculate what rates the railroads mustcharge in order to earn a fair dividend on their money. The completionof this physical valuation is, therefore, necessary if the InterstateCommerce Commission is to fix rates which are just and reasonable fromthe standpoint of the public on the one hand, and from the standpointof the railroads on the other. QUESTIONS ON THE TEXT 1. What is the economic basis of natural monopoly? 2. Describe the regulation of local utilities. 3. Give the chief arguments in favor of municipal ownership. 4. What arguments are advanced against municipal ownership? 5. What is the extent of municipal ownership in this country? 6. Name some of the fundamental conditions of municipal ownership. 7. Outline briefly the development of railroads in this country. 8. How does the principle of decreasing cost apply to railroads? 9. Discuss the evils resulting from railroad development. 10. Why did State regulation fail to eliminate these evils? 11. Discuss the nature and effect of the Interstate Commerce Act. 12. Give the chief arguments in favor of national ownership ofrailroads. 13. What are the chief arguments against this step? 14. When and why were the railroads taken over by the Government? 15. Explain clearly the nature of the results of government controlof railroads. 16. Enumerate the laws under which the Interstate Commerce Commissionnow administers the railroads. 17. Summarize present railroad legislation with regard to (a) discriminations, (b) rates, and (c) the extension of Federal control authorized under the Act of 1920. 18. What is the greatest problem now before the Commission? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxviii. Or all of the following: 2. Ely, _Outlines of Economics_, chapter xxvii. 3. Fetter, _Modern Economic Problems_, chapters xxvii and xxx. 4. King, _Regulation of Municipal Utilities_, chapter i. 5. Seager, _Principles of Economics_, pages 419-431, and chapter xxiv. QUESTIONS ON THE REQUIRED READINGS 1. What is meant by Transportation Economics? (Ely, page 557. ) 2. Explain clearly why public utilities are natural monopolies. (Seager, pages 419-426. ) 3. What is the origin of the right to regulate public utilities inthe public interest? (King, page 4. ) 4. Why must municipal utilities be regulated or controlled? (King, pages 11-16. ) 5. What is the relation of unregulated municipal utilities to badpolitics? (King, pages 17-19. ) 6. What are the legal duties of corporations controlling municipalutilities? (King, page 10. ) 7. What forms may municipal ownership take? (Fetter, pages 461-462. ) 8. How does uniformity of product favor monopoly? (Fetter, page 463. ) 9. Why did the railroads receive liberal help from state and Federalgovernments during the period of railroad development? (Fetter, page413. ) 10. Distinguish between local and personal discriminations. (Fetter, pages 416-417. ) 11. Discuss the nature of the early state railroadcommissions. (Fetter, pages 420-422. ) 12. In what respects was the Interstate Commerce act amended by thelegislation of 1903, 1906 and 1910? (Seager, pages 442-443. ) 13. What was the nature of the Commerce Court? (Seager, page 444. ) 14. What is the most convincing argument against the public ownershipof the telegraph and the telephone? (Seager, page 445. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a list of the natural monopolies in your locality. 2. To what extent are the public utilities in your locality controlledby the (a) municipality, the (b) state, the (c) Federal government? 3. The franchise-granting power in your state. 4. The regulation of local utilities in your municipality. 5. Extent of municipal ownership in your section. If possible, visit amunicipally owned utility and report upon it. 6. Interview an official of some local utility upon the desirabilityof municipal ownership of that utility. 7. The history of railroad development in your section. 8. Outline the more important laws enacted by your state legislaturerelative to railroads. 9. Service and rates in your locality during the period of governmentcontrol, 1917-1920. II 10. Regulation of local utilities through the franchise. (King, _Regulation of Municipal Utilities_, part ii. ) 11. Regulation of local utilities through the utility commission. (King, _Regulation of Municipal Utilities_, part iii. ) 12. Standards of service for local utilities. (_Annals_, vol. Liii, pages 292-306. ) 13. The case for municipal ownership. (King, _Regulation of MunicipalUtilities_; Thompson, _Municipal Ownership_) 14. The case against municipal ownership. (King, _Regulation ofMunicipal Utilities_; Porter, _Dangers of Municipal Ownership_. ) 15. Early development of railroads in the United States. (Coman, _Industrial History of the United States_, pages 232-248; Bogart, _Economic History of the United States_, chapters xxiv and xxv;_Lessons in Community and National Life_, Series C, pages 217-233. ) 16. Geographical distribution of railroads. (Semple, _American Historyand its Geographic Conditions_, chapter xvii. ) 17. Combinations in the railroad industry. (_Lessons in Community andNational Life_, Series A, pages 219-224; Bogart, _Economic History ofthe United States_, chapter xxix; Johnson, _American RailwayTransportation_, chapter iii. ) 18. Rate-making. (Johnson, _American Railway Transportation_, chapterxx; Bullock, _Elements of Economics_, pages 212-217. ) 19. Physical valuation of the railroads. (_Annals_, vol. Lxiii, pages182-190. ) 20. Railroad regulation and the courts. (Johnson, _American RailwayTransportation_, chapter xxvii. ) 21. War-time control of railroads in the United States. (_Annals_, vol. Lxxxvi, all; Dixon, _War Administration of the Railways in theUnited States and Great Britain_, part i. ) 22. Report of the Interstate Commerce Commission upon the desirabilityof government ownership of railroads in the United States. (Clevelandand Schafer, _Democracy in Reconstruction_, pages 382-396. ) 23. War-time control of railroads in Great Britain. (Dixon, _WarAdministration of the Railways in the United States and GreatBritain_, part ii. ) 24. Railroad management in England and France. (Johnson, _AmericanRailway Transportation_, chapter xxiii. ) 25. Railroad management in Italy and Germany. (Johnson, _AmericanRailway Transportation_, chapter xxiv. ) FOR CLASSROOM DISCUSSION 26. The success with which public utilities in your community havebeen regulated. 27. Should the franchise-granting power in your state be still furtherrestricted? 28. The success of municipal ownership in your locality. 29. The relation of "stock watering" or "overcapitalization" to highprofits. (See Taussig, _Principles of Economics_, vol ii, page 385. ) 30. Is public ownership of railroads more practicable under ademocratic or under an autocratic form of government? CHAPTER XXIX THE TARIFF 355. THE PRINCIPLE OF EXCHANGE. --In Chapters VII and VIII it waspointed out that when individuals divide up their labor so that eachbecomes a highly specialized workman there is a resultant increase inthe community's productivity. Similarly, when one section of thecountry is adapted primarily to manufacturing, while another sectionis peculiarly suited to farming, there is a gain in nationalproductivity when each of these areas specializes in those activitieswhich it can carry on most effectively, and is content to resort totrade in order to secure the benefit of industries specialized inelsewhere. So far as the economic principle is concerned, there islikewise a gain when different countries specialize in those forms ofproduction at which their citizens are most effective, and are contentto secure through international trade the products of specializationin other countries. 356. NATURE OF THE TARIFF. --But though all civilized nations allow andeven encourage the division of labor among their individual citizensand among the various areas within their own boundaries, manycountries restrict the degree to which their citizens may exchangetheir surplus products for the surplus products of foreign producers. In the United States, for example, Congress has the power to levy aduty or tariff on foreign-made goods which are brought into thiscountry for sale. This tariff may be levied primarily to increase national revenue, inwhich case the rate of duty is generally too low to keep foreign goodsout of our markets. When the tariff is purely a revenue measure, "freetrade" is said to exist. On the other hand, a tariff may be so highthat domestic goods will be protected in our markets againstcompetition from foreign-made goods of a similar grade. In this case aprotective tariff is said to exist, though such a measure also bringsin revenue. Most tariff measures, indeed, contain both "revenue" and"protective" elements, and it is only when a tariff act is _primarily_a protective measure that we speak of it as a protective tariff. 357. THE MEANING OF "PROTECTION. "--Let us be sure that we understandexactly what is meant by "protection. " Suppose that in the absence ofa protective tariff an English-made shoe can be produced and broughtto this country at a total cost of $3. 00. Let us assume that this shoecompetes in the American market with an American-made shoe which is ofsimilar grade, but which, for various reasons, it costs $3. 50 toproduce. Suppose, further, that both English and American producermust make a profit of $0. 50 per pair of shoes, or go out of business. In the resulting rivalry, the English shoe can sell for $3. 50 and makea profit. Competition would force the American producer to sell hisshoe for $3. 50 also, but since this would give him no profit, he wouldbe forced out of business. In such a case the American manufacturermight secure the passage of a protective tariff on this type of shoe, so that the English shoe would be charged $0. 75 to enter this countryfor sale here. This would bring the total cost of the English shoe upto $3. 75, and to make a profit the shoe would have to sell for $4. 25. But since the American shoe can be sold for $4. 00, the English shoe isforced out of the market. [Footnote: If, in this example, the dutywere, say, $. 25, the foreign shoe could continue to enter our marketsand compete with the American shoe. In this case the tariff would be a_revenue_, and not a _protective_ measure. ] The tariff question arises primarily in connection with the matter ofprotection, and may be stated as follows: Ought Congress to interferewith international trade by levying protective duties on imports; and, if so, just how and to what extent should such duties be levied? 358. TARIFF HISTORY OF THE UNITED STATES. --The first tariff measure inour national history was the Act of 1789. This was a revenue measure, though it gave some degree of protection to American industries. Downto the close of the War of 1812 our tariff was mainly for revenuepurposes. After the close of that war a heavy duty on foreign iron andtextile products was imposed for the purpose of protecting domesticproducers against the cheaply-selling English goods which wereflooding our markets. After 1816 it became our policy to combine inthe same tariff act high protective duties with revenue duties. In1824 the general level of duties was raised. In 1828 Congressendeavored to lay a tariff which would suit all sections of thecountry, but the attempt failed. Between 1828 and 1842 the tariff was gradually lowered. Between 1842and 1861 our tariff policy was unsettled, but in the latter year thedomestic disturbances brought on by the Civil War resulted in thepassage of a tariff which turned out to be highly protective. In theperiod immediately following the Civil War the tariff continued to bevery high, due chiefly to pressure from industrial interests which hadsecured protection from the war rates. In spite of attempted reform in1870, 1873, and 1883, the tariff continued to be highly protective. In 1894 the Democrats reduced the tariff somewhat, and in 1909 theRepublicans attempted to satisfy a popular demand for lower rates bythe passage of the Payne-Aldrich Act. This measure reduced some rates, but not enough to satisfy the popular mind. In 1912 the Democratsreturned to power, and the following year passed the Underwood-SimmonsAct, lowering the rates on many classes of commodities, and placing anumber of important articles on the free list. In 1920 the Republicanparty again secured control of the government, and the tariff wasraised. At present our tariff is highly protective. 359. COMPROMISE CHARACTER OF TARIFF. --Our tariff history is full ofinconsistencies. The pendulum has swung first to low duties and thento severely high duties. No tariff has satisfied all the interestsinvolved; indeed, no other issue, with the possible exception ofslavery, has provoked as much political strife as the tariff. Everytariff is essentially a compromise, for a duty upon practically anycommodity which we might select will benefit some of our citizens, while it will either prove of no use to other individuals or willactually injure them. Animated by self-interest, the farmer, thelumberman, the miner, or the manufacturer, each desires a protectiveduty on the commodity which he produces, and a low rate, or no duty atall, upon commodities which he consumes. As a result, the tariff hasbecome a sectional problem, in the solving of which Congressmen havetoo often considered as paramount the economic interests of theparticular locality which they represent. 360. NATURE OF THE TARIFF ARGUMENT. --The tariff question generallydivides men into two camps, those favoring "free trade, " and thosedemanding duties that are highly protective. From the standpoint ofeconomics, the most vital argument against protection is that there isno fundamental reason why there should not be free trade betweennations. Protection is economically wasteful because it divertscapital and labor from industries in which we are relatively effectiveto industries in which our productivity is relatively low. Highprotection is thus said to decrease national productivity, and toimpose a burden upon the consumer by preventing him from purchasingcheaper foreign-made goods. In view of these facts, the free trader claims that to the extent thatthe tariff is an economic proposition, the burden of proof rests uponthe protectionist. If this assertion is accepted, the tariff argumentconsists of the attempts of the protectionist to outweigh the aboveeconomic argument for free trade by putting forth economic argumentsfor protection, and by developing social and political reasons for aprotective tariff. 361. AN EARLIER TARIFF ARGUMENT. --Formerly one of the most importantarguments for protection was the home market theory. This theory wasadvanced in 1824 by Henry Clay. In the effort to win the agriculturalinterests to protection, Clay maintained that a protective tariff onmanufactures would develop urban centers, and that this would increasethe purchasing power of the city dwellers. This increased purchasingpower, Clay declared, would assure the farmer of a steady domesticmarket, not only for his staples, but also for perishable goods whichcould not be shipped to foreign countries. Though still heard in tariff discussions, this argument now exertsless influence than formerly. Perfected means of transportation havetended to place domestic and foreign markets on an equal footing. Moreover, the population of our cities has increased so much morerapidly than has the productivity of our farms, that it is unnecessaryartificially to create a home market for the farmer's produce. 362. THE WAGES ARGUMENT. --At the present time one of the mostimportant arguments in favor of a protective tariff is that it eithercreates or maintains a relatively high level of wages for workmenengaged in the protected industries. Those advancing this argumentbelieve that free trade would lower wages and depress the standard ofliving for large groups of workmen. The free trader maintains that high wages do not depend uponprotection, and this for three reasons: First, equally high wages areoften paid in protected and unprotected industries alike; second, highwages do exist in a number of protected industries, but many of theseindustries also paid high wages before protection had been secured;third, there is nothing in a protective tariff to force employers topay more than the current wage. Rather than raising wages, ProfessorTaussig maintains, "protection restricts the geographical division oflabor, causes industry to turn to less advantageous channels, lessensthe productivity of labor, and so tends to lower the general rate ofwages. " 363. THE VESTED INTERESTS ARGUMENT. --An important argument in favor ofcontinued protection is that the introduction of free trade would ruinvaluable manufacturing businesses which have been built up underprotection, and which are unprepared or unable to maintain themselvesagainst foreign competition. In the case of such industries, it ismaintained, the removal of protection might result in economicdisaster. Factories would have to close, investments would depreciate, and numerous laborers would be thrown out of employment. There is great force in this argument. Even the most ardent freetrader will admit that a sudden removal of tariff duties might bedemoralizing to industries long used to protection. Nevertheless, thevested interests argument is not so much an argument for continuedprotection as it is a reason why there should be a gradual rather thana sudden removal of protective duties. If protection were to be scaleddown gradually and wisely, there is no reason why capital invested inindustries unable to stand foreign competition could not be graduallytransferred to industries unaffected by foreign competition. 364. TARIFF ARGUMENTS ACCENTUATED BY THE WORLD WAR. --Three argumentsin favor of protection have taken on greater importance because of theWorld War. One of these is the anti-dumping argument. From the standpoint of theAmerican tariff, dumping is the practice which some foreign producershave of temporarily selling their surplus goods in this country at anabnormally low price. [Footnote: Some American producers in turn"dump" in foreign markets, but with this practice we are not hereconcerned. ] If dumping were permanent, we would gain because we wouldbe getting goods at a much lower price than we could manufacture them. The evil of dumping grows out of the fact that it tends to forcedomestic producers out of business. Then later the foreign supply maydiminish, in which case we suffer from a shortage of goods. If foreignproducers do continue to supply the American market they may takeadvantage of the fact that American competitors have been forced outof business, and demand monopoly prices. The free trader admits theforce of the anti-dumping argument, and concedes that the intenseeconomic rivalry growing out of the World War rendered desirabletariff rates which would protect domestic producers against dumping. Another protectionist argument which has gained in strength because ofthe War is the "infant industries" argument. Protectionists claim thatindustries really adapted to this country may be prevented fromarising here because of their inability, while still in theexperimental stage, to meet strong competition from well-establishedforeign producers. When an industry is in the experimental stage thecost of production is relatively high, and the price will becorrespondingly high. Well established and economically-conductedbusinesses can undersell these experimental or "infant" industries. Protection for such "infant" industries is therefore sought until suchtime as they will be able to stand foreign competition. The freetrader has generally replied that such protection may be desirable insome cases, but maintains that care should be taken to make suchprotection both moderate and temporary, otherwise protection willperpetuate industries for which we are really unsuited. During theWorld War American producers began to manufacture dyes and chemicalsformerly imported from Germany. The industrial importance of theseproducts gave weight to the belief that the new industries whichsprang up in this country during the War were entitled to protectionagainst foreign competition. A third protectionist argument which was strengthened by the World Waris the military or self-sufficiency argument. It has long been theclaim of the protectionist that high tariff duties encourage thedevelopment in this country of all industries producing thenecessities of life, as well as all supplies which are vital in wartime. High protection was thus defended on the grounds that itpermitted the United States to be nationally self-sufficing, thusallowing us to be relatively independent of other countries, especially in war time. Previous to the World War many free tradersscoffed at this argument as resting upon an unjustified fear of war, but this attitude was changed by the dangers to which we weresubjected by the interruption of our foreign trade during the war. Atpresent the military or self-sufficiency argument is of greatimportance. 365. THE TREND TOWARD PROTECTION. --Of late years, therefore, there hasbeen a distinct trend toward protection in this country. The fear ofdumping, the desire to protect infant industries established duringthe World War, and the increased importance of the military or self-sufficiency argument have been factors in this trend. Another factorhas been that the Republican party, traditionally committed to apolicy of high protection, returned to power in 1920. A last importantinfluence has been an increased need for Federal revenue. The WorldWar not only increased our indebtedness, but the advent of nationalprohibition in 1919 cut off a source of Federal revenue formerly veryimportant. 366. TARIFF NEEDS. --From the standpoint of practical politics, one ofthe greatest needs of our time is for an intelligent and public-spirited handling of tariff problems. The tariff is a technical andhighly complex question, upon which politicians have heretofore hadtoo much to say, and trained economists too little. Too often, vagueclaims and political propaganda have carried more weight than havefacts. It is asserted by many that the tariff can never be taken out ofpolitics, but this is perhaps too strong a statement. In thisconnection an interesting development was the establishment in 1916 ofthe United States Tariff Commission. This Commission consists of sixmembers appointed by the President for twelve years. Not more thanthree of the members may belong to the same political party. It is theduty of the Commission to investigate conditions bearing upon thetariff and to report its findings to Congress. It is hoped that thisplan will place at the disposal of Congress scientific data on whichto base tariff legislation. So far the Commission has not materiallyreduced the influence of politics upon tariff legislation, though itis perhaps too soon to expect results. It is sometimes said that our tariff policy ought to be lesschangeable. Certain it is that our tariff history is full ofinconsistencies and irrational fluctuations. But the question of atariff policy is a thorny one. Manifestly, business should not beforced to accommodate itself to a purely political manipulation of thetariff; on the contrary, the tariff ought to vary with changes inbusiness conditions at home and abroad. Whatever may be implied by atariff "policy, " it is also certain that the tariff should somewhataccommodate itself to revenue needs. Beyond these somewhat generalstatements, however, it is hardly safe to say what should be the basicelements in a national tariff policy. QUESTIONS ON THE TEXT 1. Explain the gain from exchange. 2. What is meant by the tariff? Distinguish between a revenue and aprotective tariff. 3. State the tariff problem. 4. Outline briefly the tariff history of the United States. 5. Why is tariff practically always a compromise? 6. Discuss the home market argument. 7. What can be said for and against the wages argument? 8. What is the vested interests argument? 9. What effect did the World War have upon the anti-dumping argument? 10. What is the military or self-sufficiency argument? 11. How did the war affect the infant industries argument? 12. Why was there a trend toward protection after the World War? 13. What is the nature and purpose of the United States TariffCommission? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxix. Or all of the following: 2. Carver, _Elementary Economics_, chapter xxvii. 3. Fetter, _Modern Economic Problems_, chapter xv. 4. Seager, _Principles of Economics_, chapter xxii. 5. Thompson, _Elementary Economics_, chapter xix. QUESTIONS ON THE REQUIRED READINGS 1. What is the extent of the protective tariff throughout the world?(Fetter, page 218. ) 2. Distinguish between a specific and an ad valorem duty. (Fetter, pages 219-220. ) 3. What is meant by a free list? (Fetter, pages 220-221. ) 4. What is the fundamental proposition of the free trader? (Carver, page 244; Thompson, pages 262-263. ) 5. What is the "no buying no selling" argument? (Thompson, page 263. ) 6. What is the balance-of-trade argument? (Carver, page 245. ) 7. What is the origin of the present tariff system? (Seager, pages394-395. ) 8. What is the political argument in tariff discussions? (Seager, page 397. ) 9. What is the relation of tariff to political corruption? (Seager, page 405. ) 10. What was the character of the Payne-Aldrich tariff of 1909?(Fetter, pages 233-234. ) 11. What was the character of the Underwood tariff of 1913? (Fetter, pages 234-236. ) TOPICS FOR INVESTIGATION AND REPORT I 1. The home market argument with reference to conditions in yoursection. 2. The infant industries argument with reference to conditions in yoursection. 3. Commodities essential to the prosperity of your community which areimported from abroad. 4. The attitude of your section of the country toward the tariff. Hasthis attitude changed in the past fifty years? 5. Write to your Representative in Congress for his opinion on theneed of a "fixed tariff policy. " 6. Interview several friendly business men on their attitude towardthe tariff. 7. Interview a member of the Democratic party upon the attitude of hisparty toward the tariff. 8. Interview a member of the Republican party upon the attitude of hisparty toward the tariff. II 9. The principle of international trade. (Taussig, _Principles ofEconomics_, vol. 1, chapter xxxiv; Fetter, _Modern Economic Problems_, chapter xiii. ) 10. The gain from international trade. (Taussig, _Principles ofEconomics_, vol. 1, chapter xxxv. ) 11. The infant industries argument as applied to American industries. (Taussig, _Tariff History of the United States_, Part 1, chapter i. ) 12. The Civil War tariff. (Taussig, _Tariff History of the UnitedStates_. Consult also any economic history of the United States, orany standard text on economics. ) 13. Tariff administration. (_Cyclopedia of American Government_. ) 14. Political aspects of the tariff. (Tarbell, _The Tariff in OurTimes_, chapter xii. ) 15. The history of any important tariff since the Civil War. (ConsultTaussig, _Tariff History of the United States_; Fetter, _ModernEconomic Problems_, chapter xv; any standard work on the economichistory of the United States; or any encyclopedia under "Tariff. ") 16. The tariff in Germany. (Ashley, _Modern Tariff History_, part i. ) 17. The tariff in France. (Ashley, _Modern Tariff History_, part iii. ) FOR CLASSROOM DISCUSSION 18. Why has the wages argument increased in importance within the lasthalf century? 19. How could our protective tariff be abolished without endangeringpresent investments in protected industries? 20. The question of a national tariff policy. 21. To what extent should the formulation of our tariff acts take intoconsideration the wishes of foreign producers who desire to sell theirgoods in this country? CHAPTER XXX CONSERVATION 367. ATTITUDE OF THE EARLY SETTLER TOWARD NATURAL RESOURCES. --Thechief concern of the early American settler was to turn a virgincontinent into homes as quickly and as easily as possible. During theseventeenth, eighteenth, and most of the nineteenth century, ournatural resources were very abundant, while labor and capital wererelatively scarce. As the settlers spread across the Appalachians andinto the great West, it was to be expected, therefore, that the home-maker should use labor and capital as carefully as possible and thathe should use generously such resources as forests, water power, andsoil fertility. Little blame attaches to the early settler for thisattitude, indeed he acted in accordance with sound economic law. Thiseconomic law declares that under any particular set of circumstancesfactors of production should be carefully used in proportion as theyare scarce, and generously used in proportion as they are abundant. 368. RESULT: GROWING SCARCITY OF NATURAL RESOURCES. --The rapidsettlement of the West was essential to our national unity anddevelopment. Nevertheless, the extensive and even lavish use ofnatural wealth since colonial times has lately called attention to thescarcity of resources formerly considered overabundant. More than three fourths of our original forest area has been culled, cut over, or burned, since colonial times. Wholesale logging methodshave swept vast areas bare of valuable timber. Careless cutting haswasted a quarter of our timber supply. In the lumber mill about 40 percent of the entire volume of the logs is lost by wasteful methods ofwork. Since 1870 forest fires have annually destroyed more than$50, 000, 000 worth of timber. Altogether our timber supply isdiminishing three or four times as fast as we are replenishing it. By holding sod in place, forests furnish a sponge-like reservoir whichabsorbs rainfall and then retains it sufficiently to insure that itwill be paid out only gradually. The process of cutting down forests, called deforestation, destroys the sod, so that streams formerly fedfrom forested areas by a steady process become dangerously swollen incertain seasons and greatly reduced in size at other times. One effectof this alternation of freshets with abnormally dry periods is a lossof steady and dependable water power. Deforestation has also an injurious effect upon agriculture. Whenheavy rains wash valuable surface soil from the tops and sides ofhills these denuded areas are rendered less valuable for grazing, while the overabundance of top soil in the valleys retards effectivecultivation. Agriculture also suffers from the fact that streams whichwould ordinarily furnish a steady supply of irrigation water are ofteneither in a state of flood or practically dried up. Despite the excellent work done by the Department of Agriculture, American farming methods are in many sections of the country bothcareless and wasteful. The abundance of land in past years seemed tojustify our free use of it, nevertheless such use has in many casesresulted in a serious loss of fertility. Careless tillage and afailure to rotate crops have resulted in a heavy loss of nitrogen, potassium, phosphorus, and other essential soil elements. Heretofore we have used coal very lavishly. Often as much coal hasbeen wasted as has been mined. Mining corporations have oftenneglected low grade coal deposits, and have abandoned mines withouthaving first removed all of the accessible high grade coal. Imperfectcombustion, both in dwellings and in industrial establishments, issaid to waste more than a third of our coal, as well as creating acostly and injurious smoke nuisance. Our consumption of coal isdoubling every ten years. In view of the fact that our coal depositsare limited, this increasing consumption is a serious development. Iron, too, has been used wastefully. The bog iron deposits of theAtlantic coast were used up before 1800, and as the result of anintense industrial development since 1850, the supply of high gradeores is being speedily diminished. Oil and gas have been usedlavishly, and even, in some cases, deliberately wasted. 369. HIGH PRICES. --The lavish use of natural resources which hascharacterized the American people since colonial times has been animportant factor in the cost of living. In early days there was anabundance of resources and few people to use them; at present thesupply of many of our resources is greatly diminished, and there is amuch larger population seeking to use them. In the case of everynatural resource the supply is either limited or is failing toincrease as rapidly as are the demands upon it. The result is higherprices for coal, wood, iron, oil, gas, and similar commodities. It isat least partly due to the heavy drain upon our resources that thecost of building homes, heating them, feeding the population, andcarrying on the varied activities of American industry is steadilyincreasing. 370. MONOPOLY. --Throughout the history of our natural resources therehas been a strong tendency toward monopoly. Natural resources shouldbe safeguarded for the benefit of the people as a whole, yet much ofour natural wealth has been monopolized by individuals. Four fifths ofour timber lands are privately owned, and of that four fifths abouthalf is controlled by 250 companies. Two thirds of the developed waterpower in this country is controlled by a small group of powerinterests. Defective land laws, the lax administration of good laws, and extravagant land grants to railroads have allowed private fortunesto be built up without a proportionate advantage to the public. Coaland petroleum deposits are controlled largely by a few corporations, while a heavy percentage of our copper and iron deposits is in privatehands. 371. THE CONSERVATION MOVEMENT. --After the middle of the nineteenthcentury the growing scarcity of many natural resources calledattention to the need of conserving them. Conservation means toutilize economically, rather than to hoard. It means, furthermore, that resources should be used so that both the present and futuregenerations will reap a proper benefit from America's great naturalgifts. Thus conservation seeks, Mr. Van Hise once said, "the greatestgood to the greatest number, and for the longest time. " The dawn ofthe conservation idea stimulated a reaction against the carelessadministration of natural resources. Toward the end of the 19thcentury, there was an increasing amount of legislation encouraging thelegitimate use of natural resources on the one hand, and repressingmonopoly on the other. After the opening of the twentieth centuryinterest in conservation increased. In 1908 President Roosevelt calleda conference of the governors of the various states for the purpose ofconsidering this vital problem, and from that meeting dates a definiteand nationwide conservation policy in this country. Some of the effects of this changing attitude toward natural resourcesmay now be noted. 372. FORESTS AND WATER POWER. --In 1891 a Federal law provided for asystem of national forest reservations. These reservations now includea substantial proportion of our forests, and are steadily extendingtheir limits. Since 1897 there has been a Bureau of Forestry which hasperformed invaluable services. Forest fires have been reduced, denudedareas have been reforested, forest cutting has been controlled, and aconstructive program of forest culture developed. Forest reservesunder the control of the individual states now total more than10, 000, 000 acres. Of late years there has been an increasing use ofdams and reservoirs for the storage of flood waters and thedevelopment of water power. This regulation of streams gives a uniformflow of water both for navigation and for irrigation purposes. 373. THE LAND. --The desire to encourage the home-maker has long beenthe motive power behind our public land policy, but unfortunately manyof our earlier land laws did not prevent peculators and largecorporations from fraudulently securing control of land intended forthe _bona fide_ or genuine settler. Within the last quarter of acentury our land laws have been reorganized, with the double aim ofdoing justice to this type of settler, and of suppressing speculationand monopoly. As the result of Land Office investigations in 1913, more than 800, 000 acres were returned to the public domain, on theground that they had been secured through fraud. The Department of Agriculture has steadily extended its scope. Bettermethods of cultivation, lessons in soil chemistry, and experimentswith new and special crops have helped conserve the resources of theland. An elaborate system of experiment stations has been built upsince 1887. The Weather Bureau in the Department of Agriculture savesmillions of dollars' worth of property annually by sending outwarnings of frost, storm, and flood. Reclamation is increasingly important. New crops are being developedfor the semi-arid areas of the West. Swamp lands in the East and Southare being drained. Levees and breakwaters along the Mississippi arehelping to prevent the loss of arable land through the river's changesin course. Even more important is the irrigation movement. In 1894 the Carey Actgave Federal encouragement to several western states in irrigationprojects, and in 1902 the Reclamation Act provided for theconstruction of irrigation works under the direction of the Secretaryof the Interior. The plan provided by the Act of 1902 is self-supporting, the expense of the construction and improvement of theirrigation system being met from the sale of public lands. Theadministration of the Reclamation Act has already resulted in millionsof acres being brought under cultivation. 374. MINERALS. --Until 1873 coal lands were disposed of on practicallythe same terms as agricultural lands. But after that date lawsrestricting the purchase of coal lands began to be increasinglysevere. In 1910 Congress withdrew from public sale nearly 100, 000, 000acres of coal, petroleum, and phosphate lands. At the present time thediscovery of coal on land secured by settlers for purely farmingpurposes entitles the government to dispose of the coal deposits underspecial conditions. There is also a tendency for the government todemand higher prices of individuals buying public coal lands. In some quarters there is a demand that all coal lands be leasedrather than sold. The Federal government has not yet yielded to thisdemand, but Colorado and Wyoming now lease rather than sell their coallands. Under the lease system in these states, the state retainsownership, but allows private individuals a definite commission perton of coal mined. The lease system is also advocated in the case oflands containing iron, oil, and gas deposits, on the grounds that itsafeguards the interests of the public and at the same time allows themining corporations a fair profit. 375. REASONS FOR OPTIMISM. --In spite of the appalling waste which hasbeen characteristic of our administration of natural resources, theoutlook is distinctly encouraging. Resources used by past generationsare gone forever, but at last we are making rapid strides inconserving what is left. Not only this, but we are perfecting plansfor an increased supply of those resources which can be replenished. The admirable work of our Forest Service promises not only to reducethe present waste of wood products, but actually to increase thesupply of timber. The Service deserves high praise both for its workin saving and replenishing forests, and for its wise handling offorest problems involving other resources. "By reasonable thrift, "runs a report of the Forest Service, "we can produce a constant timbersupply beyond our present need, and with it conserve the usefulness ofour streams for irrigation, water supply, navigation, and power. " We now appear thoroughly awake not only to the necessity ofsafeguarding what is left of the public domain, but also to thenecessity of increasing the productivity of inferior lands. There arestill in this country more than 300, 000, 000 acres of unappropriatedand unreserved land. Three fourths of this area is at present fit onlyfor grazing, but the rapid development of kaffir corn, durum wheat, Persian clover, and other crops suitable for dry soils bids fairgreatly to increase the productivity of this land. The irreplaceable character of our mineral deposits, together with thetendency for large industrial interests to monopolize minerals. Hasgreatly stimulated the conservation of these resources. A valuablestep forward has been the reclassification of public lands to allow ofspecial treatment of lands containing mineral deposits. Coal is stillused lavishly, but nine tenths of our original deposits are still inexistence. Furthermore, water power, electricity, and othersubstitutes for coal are being developed. Our high grade iron oreswill be exhausted in a few decades, but an iron shortage may beprevented by more careful mining, the use of low grade ores, and theuse of substitutes. 376. DIFFERENT RESOURCES CALL FOR DIFFERENT TREATMENT. --A wiseconservation policy will take note of the fact that differentresources call for different types of treatment. Coal, petroleum, oil, and gas are limited in extent and are practically irreplaceable. Theseshould be taken from the earth and utilized as economically aspossible. The same is true of the metallic minerals, such as iron andcopper, though here the use of substitutes is of greater importancethan in the case of non-metallic minerals. Water can best be conserved by the wise development of water powersites, and by the careful utilization of streams. Forests may be renewed, but slowly. Their conservation requires theprevention of fires, the reduction of waste in cutting and milling, the use of by-products, and scientific reforestation. Soil elements may also be renewed, though slowly and with difficulty. Reforestation prevents erosion and thus conserves soil fertility. Systems of crop rotation designed to retain nitrogen, potassium, andphosphorus are valuable. 377. SOME CONSERVATION NEEDS. --The above considerations indicate someof our conservation needs. It is believed by most students ofconservation that the Federal forest holdings should be extended andconsolidated. There is need for more stringent forest fireregulations, especially in the case of private forests. In order toreforest the denuded areas and to grow timber scientifically some suchplan as the German system of forest culture might be adopted. There isurgent need of a systematic development of our inland Waterways. Theconstruction of more dams and reservoirs, the dredging of rivers andharbors, the coördination of canals and inland waterways, and theimprovement of the Mississippi-Great Lakes system, all these would behelpful measures. Irrigation and other reclamation projects, includingthe drainage of swamp lands, should be developed systematically. American farming methods ought still further to be improved. We are inneed of laws penalizing wasteful methods of mining and prohibitinguneconomical methods of combustion. Probably the system of leasingrather than selling mineral lands should be extended. A last vital need in conservation is coöperation between state andFederal authorities, and between private individuals and publicagencies. This is of great importance. Where rivers course throughseveral states, and where forest fires in one section threatenadjacent forest areas, coöperation must be secured. The Governors'Conference of 1908 stimulated coöperation between the states and theFederal government, and since 1909 the National ConservationAssociation has been a means of coördinating the work of all personsand agencies interested in conservation. There is still, however, little coöperation between state or Federal governments on the onehand, and private owners on the other. It is a matter of specialregret that although four fifths of our forests are privately owned, both fire prevention and scientific forestry are little developed onprivate estates. 378. THE QUESTION OF ADMINISTRATION. --Though it is conceded on allsides that our natural resources ought to be utilized economically, there is much discussion as to whether the states or the Federalgovernment ought to dominate the conservation movement. Those favoring the extension of Federal control over conservationpoint out that forest control, irrigation, conservation of waterpower, and similar projects are distinctly interstate in character, and are thus properly a Federal function. Federal administration issaid to be necessary in order to insure fair treatment of differentlocalities. Finally, it is maintained, the states have eitherneglected the question of conservation, or have handled it in theirown interests rather than with regard to the national welfare. A strong party maintains, on the other hand, that conservation isprimarily a state function. The movement is said to be too large forthe Federal government to handle. It is contended that there is nospecific warrant in the Constitution for the Federal control ofconservation. It is also claimed that Federal administration ofnatural resources has been accompanied by waste and inefficiency. Conservation is said to be a local question, best administered bythose most interested in the problem, and, by reason of theirproximity to it, most familiar with it. The problem of administration is a difficult one. In a number of casesthe claims for and against Federal control are obviously sound. Butfrom the standpoint of the public the whole matter is of secondaryimportance: the problem of administration ought to be decided on thebasis of what is best under particular circumstances. Some phases ofconservation are probably best looked after by the states, others bythe Federal government, still others by the state and Federalgovernments jointly. The problem of conflicting authority oughtsomehow to be solved. Conservation is too vital a matter to behampered by the question of method or means. QUESTIONS ON THE TEXT 1. What was the attitude of the early settler toward naturalresources? 2. Discuss the growing scarcity of natural resources. 3. What is the relation of lavish use of natural resources to the costof living? 4. What part has monopoly played in the history of our naturalresources? 5. Describe the origin and early development of the conservationmovement. 6. Outline the conservation of forests and water power. 7. How is land being conserved? 8. What is the purpose of the Reclamation Act of 1902? 9. What measures have recently been taken to safeguard our mineraldeposits? 10. Why may the present outlook for conservation be said to beoptimistic? 11. Outline our conservation needs. 12. Why is coöperation essential to the conservation movement? 13. Give the chief arguments for and against Federal administration ofconservation. REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxx. Or all of the following: 2. Coman, _Industrial History of the United States_, chapter xi. 3. Reed, _Form and Functions of American Government_, chapter xxxiii. 4. Van Hise, _Conservation of Natural Resources in the United States_, Introduction. QUESTIONS ON THE REQUIRED READINGS 1. Into what two classes may natural resources be divided? (Van Hise, page 1. ) 2. Discuss the sale of the public domain under the early land acts. (Reed, page 382. ) 3. Outline the destruction of fur-bearing animals by the earlysettlers. (Coman, page 377. ) 4. Explain the effects of depleted pasturage in the West. (Coman, pages 381-382. ) 5. What are the aims of the Inland Waterways movement? (Coman, page394. ) 6. What part did Gifford Pinchot play in the Conservation movement?(Van Hise, pages 4-5. ) 7. What is the origin of the National Conservation Commission? (VanHise, pages 7-8. ) 8. What is the nature of the North American Conservation Conference?(Van Hise, page 9. ) 9. Describe the character of the National Conservation Association. (Van Hise, pages 12-13. ) 10. Why should the Conservation movement be carried forward as rapidlyas possible? (Van Hise, page 14. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Interview an old resident with regard to the relative abundance offorests, cheap land, and wild game in your locality a half centuryago. 2. Extent and utilization of forests in your state. 3. Draw up a comprehensive plan for the prevention of forest fires. 4. Extent of unused land in your state. What is being done to makethis land more productive? 5. Classify the mineral deposits of your state. By whom are theycontrolled? 6. List the water-power sites in your locality. Draw up a plan forreforestation which would include constructive measures for theconservation of land and water power as well as forests. 7. If possible, visit a lumber camp or a mine, and observe the methodsof work. 8. Outline a plan for a local conservation club, to be affiliated withthe National Conservation Association. II 9. The principles of conservation. (Van Hise, _Conservation of NaturalResources_, pages 359-362. ) 10. Relation of population to conservation. (Van Hise, _Conservationof Natural Resources_, pages 375-380. ) 11. The use of our forests. (Van Hise, _Conservation of NaturalResources_, pages 218-260. ) 12. Water power. (Van Hise, _Conservation of Natural Resources_, pages106-185; Huntington and Gushing, _Principles of Human Geography_, chapter ix. ) 13. Irrigation. (Van Hise, _Conservation of Natural Resources_, pages185-202; Huntington and Gushing, _Principles of Human Geography_, chapter xvii. ) 14. Inland waterways. (Huntington and Gushing, _Principles of HumanGeography_, chapter vi. ) 15. Federal control of water in Switzerland: (_Annals_, vol. Xxxiii, No. 3, pages 113-121. ) 16. Land laws of the United States. (Van Hise, _Conservation ofNatural Resources_, pages 279-297. ) 17. Legal problems of reclamation. (_Annals_, vol. Xxxiii, No. 3, pages 180-192. ) 18. The work of Gifford Pinchot. (Consult an encyclopedia. ) 19. The Congress of Governors, 1908. (Van Hise, _Conservation ofNatural Resources_, appendix i. ) 20. The North American Conservation Conference. (Van Hise, _Conservation of Natural Resources_, appendix ii. ) 21. The National Conservation Association. (Van Hise, _Conservation ofNatural Resources_, appendix iii. ) FOR CLASSROOM DISCUSSION 22. To what extent should state governments regulate private forests?(Consult _Annals_, vol. Xxxiii, No. 3, pages 26-37. ) 23. Should all mineral lands be leased rather than sold? 24. Is the adoption of a program of scientific forest culture at thistime economically justified? 25. Under our present laws is it possible effectively to coördinatethe conservation work of state and Federal governments? 26. Are higher prices an effective check to the excessive use offorest and mineral products? 27. State versus Federal administration of conservation. (Consult theDebaters Handbook Series. ) CHAPTER XXXI CREDIT AND BANKING 379. SOME PRELIMINARY DEFINITIONS. --Money may be defined as anythingthat passes freely from hand to hand as a medium of exchange. Money isof two types: first, coin, including gold, silver, nickel, and coppercoins; and second, paper money, including several kinds ofcertificates and notes. Both types of money, coin and paper, arecalled "cash. " Credit refers to a promise to pay money or itsequivalent at a future date. A bank is an institution which makes itits special business to deal in money and credit. A check is a writtenorder directing a bank to pay a certain sum of money to a designatedperson. A bank note is a piece of paper money or currency whichconstitutes the bank's promise to pay in coin and on demand withoutinterest, the sum named on the face of the note. A reserve fund is anamount of money or securities which a bank habitually keeps on hand asa partial guarantee that it will be able to meet its obligations. 380. TYPES OF BANKS. --Of the several types of banks, the savings bankis perhaps the most familiar to young people. A savings bank willreceive deposits of one dollar or more, and will pay interest on theseamounts. But the savings bank does not pay out money on checks drawnagainst deposits. Indeed, it may require a formal notice of severaldays before deposits can be withdrawn. In many states there are trust companies. In addition to performingthe function of a commercial bank, trust companies take care ofvaluable papers, execute trusts and wills, and sometimes guaranteetitles to land. The investment bank is usually a private institution, conductedchiefly in the interests of certain large industrial organizations. A fourth type of bank is the commercial bank, with which this chapteris chiefly concerned. The commercial bank derives its name from thefact that it deals largely with business men. If classified on thebasis of their charters, rather than on the basis of function, commercial banks may be either National, State, or private banks. 381. PRIMARY FUNCTION OF THE COMMERCIAL BANK. [Footnote: Throughoutthe remainder of this chapter the word "bank" should be taken asreferring to the commercial bank. ]--The primary function of acommercial bank is to receive the deposits of persons who have savedsums of money for which they have no immediate use, and to make loansto persons who desire them. Of course, those who have deposited sumswith a bank may draw on their accounts at any time, either themselvesdemanding sums of the bank, or directing the bank, by means of checks, to pay specified sums to others. But experience has taught the bankthat if it keeps on hand a reserve fund equal to from five to aboutthirty-five per cent of the sums for which it is liable to depositors, it will ordinarily be able to meet all the demands for cash whichdepositors will be likely to make upon it. The bank may then loan outto business men the remainder of the money deposited with it. This notonly encourages production, but it allows the bank to secure a rewardfor its services. This reward is in the form of interest paid by thosewho borrow of the bank. 382. THE NATURE OF BANK CREDIT. --When an individual actually depositswith a bank $100 in cash, the bank becomes owner of the $100, and inturn writes down on its books the promise to pay to the depositor, ashe shall direct, amounts totaling $100. The depositor receives acheck book, and may draw part or all of the $100, as he likes. Now it may happen that an individual may wish to increase his checkingaccount at the bank, but that he has no actual cash with which to makea deposit with the bank. In this case he may give the bank hispromissory note, together with stocks, bonds, or other forms ofwealth, which the bank holds as security. In return, the bank creditshim with a "deposit. " This means that the bank extends its credit tothe individual, by undertaking to honor checks for sums not actuallyreceived from the depositor. The bank has received valuable security from the borrower and hencefeels justified in extending him a deposit credit. But, why does abank feel _safe_ in undertaking to pay out sums of money which it doesnot actually have in its vaults? The answer is that the bank attemptsto keep on hand a reserve fund sufficient to meet all demands for cashwhich may be made upon it. If the reserve fund is relatively large, the bank will ordinarily loan its credit freely. If the cash reserveis relatively low, the conservative bank may refuse further loans, onthe grounds that its cash reserve is too low to justify the acceptanceof additional obligations. The only safe alternative to this is forthe bank in some way to increase its reserve fund, and then proceed toextend the amount of credit justified by this increased reserve. 383. DANGERS OF BANK CREDIT. --The integrity of these variousoperations rests upon the confidence which people have in the bank'sability to make good its promises. Confidence in the deposit credit ofa bank exists when the past experience of depositors has taught themthat the bank in question will habitually exchange either coin or banknotes for checks. Bank notes are ordinarily accepted in the place ofcoin, because people believe the credit of the bank issuing thosenotes to be so firmly established that the bank would be able andwilling to exchange coin for its notes, upon demand. A bank isenabled to meet these obligations promptly, it should be remembered, because it keeps on hand, against the demands of depositors, a reservefund of cash, or securities which by law it is allowed to count ascash. If all of the depositors of a bank suddenly and simultaneouslydemanded the full amount of their deposits in coin, the bank would beunable to accommodate them; as a matter of fact, business men normallyleave in the bank that share of their deposits which they do notactually need. So long as men have confidence in a bank, they willprefer checks and bank notes to the less convenient coin, unless theyneed coin for some special purpose. If properly managed a bank is a profitable business for everyoneconcerned. But even though properly managed, a bank may occasionallyfind itself in a precarious position. There are few matters which theaverage person comprehends as vaguely as banking, and few things whichmore vitally interest him than the safety of his money. These twofacts combine to render banking extremely sensitive to every rumor ofunsoundness. The careful regulation of banking by law is thereforenecessary. 384. THE NATIONAL BANKING SYSTEM. --The Civil War plunged ourgovernment into serious financial straits. To improve the finances ofthe Federal government there was created, in 1863, a system ofnational banks. The original act of 1863 is still the basis of ourbanking system, though it has since been modified a number of times, notably in 1913. We speak of a "national banking system, " but as a matter of fact thisterm is inexact. From the beginning of their history, the so-callednational banks were "national" only in the sense that they werechartered by the Federal government, and were subject to examinationby Federal inspectors. These national banks constituted no definitesystem: they transacted business much as other banks did, they had nobranches, and they had little to do with one another. There was littleteam-work, and no effective leadership, so that in time of athreatened panic the different parts of the "system" worked at cross-purposes instead of as a unit. 385. WHY A BANKING SYSTEM MUST BE ELASTIC. --A good banking system willbe elastic, _i. E. _ it will respond promptly to the varying needs ofbusiness. Money and credit constitute a mechanism by means of whichbusiness is handled, just as the labor force of a factory constitutesa means of handling the output of the factory. If the output of thefactory increases, a larger labor force is needed; if the outputdwindles, fewer laborers are needed. Similarly, if business increasesin volume, an increased amount of money and credit is necessary tohandle the increased volume of business. If, on the other hand, business declines, the volume of money and credit ought to declinealso. Otherwise, there will be so much money and credit incirculation, relatively to the amount of goods, that high prices willresult. High prices will result for the following reason: Money and credit areused to exchange against goods. As a general proposition, all theavailable goods in a community are in a process of exchanging againstall of the available money and credit in the community. If goods arerelatively few and money and credit are relatively plentiful, a smallamount of goods can command a large amount of money and credit, _i. E. _the goods will sell for high prices. A sound banking system, therefore, will allow an expansion of money and credit instrumentswhen business is booming, and will permit the contraction of themechanism of exchange when business is growing dull. The old national banking system was inelastic in two ways: first, itprovided an inelastic supply of deposit credit; second, it provided aninelastic supply of currency or bank notes. 386. INELASTICITY OF DEPOSIT CREDIT (RESERVES). --It will be recalledthat the amount of loans which a bank may make depends upon themaintenance of an adequate reserve fund. From this it follows that thelarger the reserve fund the more loans the bank will feel justified inmaking. Similarly, if the reserve fund shrinks, sound banking demandsthat loans be curtailed. Keeping these facts in mind, there were tworeasons why the supply of deposit credit was inelastic before 1913. In the first place, individual banks kept only a part of theirreserves actually in their vaults. The remainder, and sometimes thelarger part, of their reserves was maintained in the form of depositsin other banks. Banks in towns and small cities habitually kept partof their reserves in the form of deposits in the banks of largecities, and the latter in turn kept part of their reserves in thebanks of New York City, the financial center of the country. Hence thecash reserves of the country tended to collect in New York, where theywere utilized by New York banks as a basis for extending loans. This was a dangerous arrangement. In the fall of the year largeamounts of cash were demanded in the West, in order to pay farm handsand otherwise "move the crops. " At such times the small western bankshad to demand their deposits in larger banks, while these in turn hadto call for their deposits in the New York banks. The New York bankswere often embarrassed by these demands, because they made a practiceof fully utilizing the funds left with them, as a basis for extendingloans. The call in the West for cash meant a curtailment of theseloans with a consequent demoralization of eastern money markets. In the second place, individual banks were unable to extend loans tocustomers beyond the point justified by the amount of reserves intheir vaults, or deposited to their credit in other banks. A bank witha total reserve of $10, 000 might feel justified in loaning its creditto the extent of $100, 000, but in case demands for additional loanswere made upon it, sound banking practice would oblige it to refuseaccommodation. Otherwise it might later find itself unable to getenough cash to pay out against claims made in the form of checks. Thispractice of curtailing loans when reserves were depleted wasdemoralizing to business, since the disappointed customer might findhis entire business blocked, and this in turn would inconvenience orseriously injure all those who were connected with him in a businessway. Before 1913, each bank stood as a unit, and when its reserveswere depleted it could not secure temporary aid from other banks. There was no centralized control, and no method whereby national banksmight secure help of one another. 387. INELASTICITY OF CURRENCY (BANK NOTES). --We have seen that anincreased volume of business demands an increased volume of money andcredit. In the previous section it was pointed out that before 1913the volume of _deposit credit_ in this country was inelastic. We mustnow notice that _bank notes_, or _paper currency_, are just as truly apart of the volume of money and credit as is deposit credit, and wemust note, also, that just as deposit credit was inelastic before1913, so the issue of bank notes was inelastic. Previous to 1913 itoften happened that the supply of bank notes was smallest whenbusiness was expanding, and that the issue of bank notes increasedduring dull business periods. This statement requires someexplanation. The Act of 1863 provided that National banks might issue bank notesonly after depositing in the Federal Treasury an amount of UnitedStates government bonds sufficient to render the bank notes absolutelysafe. Naturally, the banks made heavy purchases of bonds when the bondmarket was depressed, and tended to purchase relatively few bonds whenthose securities were high in price. Since the only reason forpurchasing bonds was to enable the b banks to issue notes, more noteswere issued when bonds were low in price, and fewer were issued whenbonds were high. Unfortunately, the same general conditions thatstimulated business also tended to raise the price of bonds, while thecauses of slack business often operated to lower bond prices. Thismeans that when business was expanding, and more notes were needed, bonds were so high that few were purchased, and consequently few noteswere issued. Similarly, when business was dull, more bonds werepurchased, and more notes issued. 388. THE PANIC OF 1907. --The panic of 1907 attracted attention tothese two great defects of the old national banking system, _i. E. _ theinelasticity of deposit credit and the inelasticity of currency. Inthe fall of 1907, a bumper crop caused Western banks to make unusuallylarge demands for cash upon the New York banks. Unfortunately, thisdepletion of reserves came at precisely the time when the demand uponNew York banks for loans was greatest. There was thus increasedpressure exerted upon New York banks for loans, but less justificationfor extending them. In response to the pressure for loans, some NewYork banks over-extended their credit. In October the inability of afew prominent banks to pay in cash all of the demands made upon themstarted a series of bank "runs. " Even solvent institutions were unableto meet their obligations promptly and many failures occurred. A largenumber of banks were technically insolvent, that is to say, theirassets were invested in forms which prevented their immediateconversion into cash, so that for the time being demands for cashcould not be met. The lack of an effective banking system preventedthese banks from securing temporary aid from banks more favorablysituated. 389. REFORM. --The panic of 1907 stimulated financial experts toattempt to remedy the defects of our banking system. In 1908 amonetary commission was appointed to investigate banking experience athome and abroad. As the result of this investigation it appearedadvisable to establish a system which should secure some of theadvantages of such centralized banking systems as have long existed inmany European countries. A single central government bank was at firstrecommended by experts, but this was deemed politically inexpedient. In view of this fact resort was had to a compromise between acentralized and a decentralized system. This compromise was effectedby the Federal Reserve Act of 1913. 390. FRAMEWORK OF THE FEDERAL RESERVE SYSTEM. --The Act of 1913 isadministered by the Federal Reserve Board, consisting of the Secretaryof the Treasury and the Comptroller of the Currency, _ex officio_, andfive other members appointed for ten years by the President. Thecountry is divided into twelve districts, in each of which there islocated a Federal Reserve bank. In each district every National bankmust subscribe six per cent of its capital and surplus for stock inthe Federal Reserve bank, and thus become a "member" bank. State banksand trust companies may, upon the fulfilment of certain conditions, become member banks. Each Federal Reserve bank is governed by a boardof nine directors, six of whom are elected by the member banks of itsdistrict, and three of whom are appointed by the Federal ReserveBoard. The Federal Reserve banks are bankers' banks, that is, they donot ordinarily deal directly with individuals, but with member banksonly. 391. ELASTICITY OF DEPOSIT CREDIT (RESERVES). --The piling up of bankreserves in New York is impossible under the Federal Reserve system. The reserves of any member bank do not ordinarily move beyond thedistrict, for a member bank may count as legal reserve only thosefunds which it has placed on deposit in the Federal Reserve bank ofits district. There exists what may be called district centralizationof reserves; that is to say, all of the legal reserves of all themember banks of a particular district are concentrated in the FederalReserve bank of the district, and can be utilized as a unit by thatFederal Reserve bank. If in time of stress the total reserves of thedistrict are insufficient, the Federal Reserve Board may arrange forthe temporary transfer of surplus funds from one Federal Reservedistrict to another. This secures one of the most important advantagesof a central bank without actual centralization. Elasticity of deposit credit is also provided for in the"rediscounting device. " A bank discounts commercial paper when itloans an individual, say, $980, on the security of a $1000 promissorynote. The $20 represents an amount which the bank counts out, ordiscounts, as payment for the service. A further operation, long knownin Europe as rediscounting, was authorized by the Act of 1913. Whenthe reserves of a member bank are too low to justify furtherextensions of deposit credit, the bank can send certain types ofdiscounted paper to the Federal Reserve bank of its district, andreceive in return either a deposit credit or a special form of papercurrency called Federal Reserve notes. 392. ELASTICITY OF CURRENCY (BANK NOTES). --When, in return fordiscounted commercial paper, the Federal Reserve bank extends adeposit credit to the member bank, the _deposit credit_ of the memberbank is rendered more elastic. When, on the other hand, the FederalReserve bank sends the member bank Federal Reserve notes in exchangefor discounted paper, the result is a certain elasticity in the_currency_. The Federal Reserve notes are a new type of currency. They are securedby the maintenance, in the vaults of the Federal Reserve banks, of aforty per cent gold reserve for their redemption. Since these notesare issued to member banks in return for rediscounted paper, theexpansion of business and the resultant tendency of member banks tosend discounted paper to the Federal Reserve bank for rediscountcauses the volume of Federal Reserve notes to expand. When the needfor additional currency has subsided, there is an arrangement wherebya certain amount of the Federal Reserve notes may be withdrawn fromcirculation. This is important, for if the amount of money incirculation continues to be enormous after business has declined, inflation and high prices result. _A truly elastic banking systemnecessitates contraction as well as expansion. _ 393. THE OUTLOOK. --On the whole, it would seem that the FederalReserve System is a happy compromise between the centralized bankingsystems of Europe and the highly decentralized system existing inthis country prior to 1913. The Federal Reserve system allows us tosecure the main benefits of a great central bank without the politicaldifficulties attendant upon the existence of such a bank. It does agreat deal to make elastic our supply of money and credit. The FederalReserve Board can mobilize the entire banking strength of the countryin time of stress, so that the strength of one member bank is thestrength of the whole system. Since it controls not only a substantialproportion of the bank reserves of the country, but also the privilegeof note issue on the security of rediscounted paper, the FederalReserve Board can administer the member banks as a unit. The systemmay not eliminate panics, but it is fair to expect that it will reducetheir number and lessen their violence. QUESTIONS ON THE TEXT 1. Distinguish between money and credit. 2. Name and distinguish between the four types of banks. 3. What is the primary function of a commercial bank? 4. Explain clearly the nature of bank credit. 5. If the cash reserve of a bank is low, and the bank is confrontedwith demands for loans, in what two ways may it dispose of thesedemands? 6. What dangers attend the extension of bank credit? 7. Describe the national banking system. 8. Why should a banking system be elastic? 9. Explain the inelasticity of deposit credit before 1913. 10. Discuss the inelasticity of bank note issue under the old nationalbanking system. 11. What was the significance of the panic of 1907? 12. Outline the framework of the Federal Reserve System. 13. Explain in detail how the Act of 1913 provides for elastic depositcredit. 14. Explain the "rediscounting device. " 15. How does the Act of 1913 provide for an elastic bank note issue? 16. What is the present outlook with respect to our banking system? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxxi. Or all of the following: 2. Ely, _Outlines of Economics_, chapter xv. 3. Fetter, _Modern Economic Problems_, chapter ix. 4. Seager, _Principles of Economics_, chapter xx. 5. Guitteau, _Government and Politics in the United States_, chapterxxx. QUESTIONS ON THE REQUIRED READINGS 1. Outline the financial powers of Congress. (Guitteau, page 361. ) 2. Describe the First and Second United States banks. (Guitteau, pages369-370. ) 3. What were the main functions of the national banks? (Guitteau, pages 371-373. ) 4. What are collateral loans? (Seager, pages 346-347. ) 5. What are the limitations upon the use of bank credit? (Seager, pages 352-353. ) 6. In what ways are depositors in national banks protected? (Seager, pages 358-359. ) 7. What is the Independent Treasury system? (Ely, pages 297-298. ) 8. Explain the relation of "moving the crops" to bank credit. (Ely, pages 298-299. ) 9. How does the Bank of England secure elastic reserves? (Ely, page302. ) 10. What was the Aldrich-Vreeland Act? (Ely, pages 305-306. ) 11. Enumerate some of the powers of the Federal Reserve banks. (Fetter, page 121. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Write to a number of banks in your vicinity asking for literaturedescribing the varied services which they offer the public. 2. Outline some of the more important banking laws of your state. 3. What are the limits of the Federal Reserve district in which youlive? In what city is the Reserve Bank located? Why do you suppose itis located in this city? 4. List the banks in your vicinity that are members of the FederalReserve system. 5. Interview an official of a bank belonging to the Federal ReserveSystem upon the advantages of such membership. 6. Interview a friendly official of a bank which does not belong tothe system. Try to ascertain the reasons why this bank does not belongto the Federal Reserve System. II 7. Nature and function of money. (Ely, _Outlines of Economics_, chapter xiv; Fetter, _Modern Economic Problems_, chapter iii. ) 8. Functions of a bank. (White, _Money and Banking_, part iii, chapteri; Fetter, _Modern Economic Problems_, chapter vii; Fiske, _The ModernBank_, chapter iv. ) 9. The bank statement. (White, _Money and Banking_, part iii, chapter ii. ) 10. The clearing house. (White, _Money and Banking_, part iii, chapter iii; Fiske, _The Modern Bank_, chapter x. ) 11. The credit department of a modern bank. (Fiske, _The ModernBank_, chapter xvii. ) 12. Bank reserves. (Fiske, _The Modern Bank_, chapter xxii. ) 13. Greenbacks. (White, _Money and Banking_, part ii, chapter iii. ) 14. The check system. (Dunbar, _Theory and History of Banking_, chapter iv. ) 15. Colonial finance. (Dewey, _Financial History of the UnitedStates_, chapter i. ) 16. The First United States Bank. (White, _Money and Banking_, partiii, chapter vi. ) 17. The Second United States Bank. (White, _Money and Banking_, part iii. Chapter vii. ) 18. The national banking system. (White, _Money and Banking_, partiii, chapter xiv; Dewey, _Financial History of the United States_, chapter iv; Fetter, _Modern Economic Problems_, chapter viii. ) 19. The panic of 1907. (Coman, _Industrial History of the UnitedStates_, pages 335-337; Noyes, _Forty Years of American Finance_, chapter xv; White, _Money and Banking_, part iii, chapter xviii. ) 20. The Bank of England. (Dunbar. _Theory and History of Banking_, chapter viii. ) 21. The Bank of France. (Dunbar, _Theory and History of Banking_, chapter ix. ) 22. The German bank. (Dunbar, _Theory and History of Banking_, chapter x. ) 23. Organization of the Federal Reserve System. (_Annals_, vol. Lxiii, pages 88-97. ) 24. The Federal Reserve act and foreign trade. (_Annals_, vol. Lxiii, pages 132-141; Kemmerer, _The A B C of the Federal Reserve System_, chapter ix. ) FOR CLASSROOM DISCUSSION 25. Should we adopt a centralized banking system such as exists inEngland, France and Germany? (See the Debaters' Handbook Series. ) 26. Should all State banks and trust companies be required by law tobecome members of the Federal Reserve System? 27. What would be the best method of acquainting the general publicwith the fundamental principles of banking? CHAPTER XXXII TAXATION 394. THE INCREASING COST OF GOVERNMENT. --In the United States, as inother modern civilized countries, the cost of government is steadilyincreasing. The settlement of the Great West, the depletion of naturalresources and the transition from a primitive to an industrial economyhave obliged our government to pay out larger and larger sums for theservices of public officials, and for the materials and commoditiesused for public purposes. The growth--of our cities and the increasingcomplexity of our industrial life have greatly increased the number ofactivities which it is to our advantage to carry on, not individually, but collectively or through the agency of government. The spread ofaltruism and the widening of the concept of social service have causedthe extension of governmental activity in such new fields as socialinsurance, recreation, and public health. Altogether, our totalgovernment expenditure is more than seventeen times as large as it wasa half century ago, while the per capita expenditure is more than fivetimes as great. 395. SOURCES OF PUBLIC REVENUE. --Writers on taxation generallyenumerate as sources of public revenue, public industries, the publicdomain, gifts, confiscations, fees, special assessments, fines, andtaxes. At various times and in different countries of the world, allof these have been important, but in the United States at the presenttime taxes are by far the most important source of public revenue. A tax may be defined as a compulsory contribution exacted from theindividual by the government, for the purpose of defraying expensesincurred for the common welfare. The government does not return to theindividual taxpayer a definite commodity or service. In return fortaxes the government indeed renders many valuable services, such aspublic education, the safeguarding of health, and protection fromdomestic violence and foreign war. But on account of the collectivecharacter of these services, no attempt is made to apportion thepayment exacted of the individual to the benefit which he as anindividual receives. Until recently our national government secured most of its revenuefrom taxes on imports, and from excises or internal taxes on suchcommodities as tobacco and liquor. Since national prohibition wentinto effect (1919), the Federal revenues are derived mainly from taxeson imports, from income and inheritance taxes, and from taxes oncorporations. More than three fourths of the receipts of state and local governmentsare derived from the general property tax, the amounts collected fromother sources being as yet relatively unimportant. The generalproperty tax is supposed to be levied upon all the property in thepossession of taxpayers, though as we shall see a little later, thistax works out very badly. The old "poll" or head tax was formerlyimportant, but at present less than two thirds of one per cent ofstate and local revenues are derived from this source. In most statesit is being abandoned because of its small yield, and because of thedifficulty and expense in collecting it. A. DEFECTS IN AMERICAN TAXATION 396. LACK OF A TAX SYSTEM. --The fundamental defect of Americantaxation is the lack of a definite and coördinated system. The taxlaws of most states have been radically changed during the last fewdecades, and are still in a process of development. In many states oldtaxes are being modified or abandoned, and new taxes adopted. But toooften this is being done without regard for the taxation reform ofother states or of the Federal government. As a result, the tax burdenweighs unequally upon different classes, while between state andstate, or between state and Federal government, there is anoverlapping of tax power. The effect of this overlapping is to createundue confusion, and to demoralize both tax officials and taxpayers. 397. LEGAL RESTRICTIONS UPON TAXING POWER. --A serious defect ofAmerican taxation is the lack of correspondence between taxing powerand fiscal needs. Let us inquire into this. The Federal government has important functions to perform, but haspractically unlimited taxing power. So far as the national governmentis concerned, the problem of finding sources of revenue is relativelysimple. The functions assumed by the state governments are as yet relativelyfew and inexpensive, while the power of the state to tax is butslightly abridged by the Federal Constitution. States have relativelylittle difficulty in making both ends meet. Local governments, and especially municipal governments, have a largenumber of functions which are increasingly important. Of the totalgovernment expenditure in this country, about 35 per cent is made bythe Federal government, 10 per cent by the state governments, and 55per cent by the local governments. But whereas Federal and stategovernments have relatively adequate taxing powers, the taxing powersof local governments are narrowly restricted by the state constitutionand statutes. Such local functions as health, public school education, and recreation are constantly demanding greater expenditures, yetlocal governments as yet have few opportunities for securing necessaryfunds. 398. DEFECTS IN TAX ASSESSMENT. --The defects of tax assessment areclearly illustrated in the workings of the general property tax, called by some authorities the worst tax in the civilized world. Thebasis of levy is the work of local assessors, who are generallyelective. The assessors estimate the value of millions of dollars'worth of property, and their estimates are the basis of the tax ratesfor not only township and county, but generally for the state as well. Incapable and dishonest assessors often work injustice byunderestimating the value of some forms of property, andoverestimating the value of other forms. In addition, politicalpressure is brought to bear upon the assessor to cause him toundervalue the property of the township or county as a whole, so thatthe local unit will bear a relatively small share of the taxes of thestate. The estimates of the local assessors are commonly subject tocorrection by a county, and sometimes by a state, board ofequalization. The duty of such a board is to make assessments uniformand just, but notwithstanding the efforts of these bodies, unequal andunfair assessments have persisted. 399. DIFFICULTY OF TAXING INTABGIBLE PROPERTY. --Where taxation is onthe basis of assessment, it often happens that the tax burden restsunequally upon different forms of property. Property in tangible form, such as land, cattle, and houses, is easily discoverable, and hencecannot easily evade the payment of taxes. But intangible property, such as bonds, stocks, or mortgage, can easily be hidden, so thatowners of this type of property often evade their share of the taxburden. This evasion is often practiced in the case of the general propertytax, which is intended to reach both tangible and intangible property. The general property tax worked well a century ago when the greatershare of wealth existed in tangible form, because local assessorscould easily locate such things as land and live stock. But the rapiddevelopment of corporations, bringing with it a rapid increase in theproportion of intangible forms of property, has rendered the generalproperty tax grossly unjust. The assessors of the general property taxcannot easily discover intangible property, unless taxpayers coöperatewith them. The all too frequent lack of such coöperation causes adisproportionate share of the tax burden to fall upon tangibleproperty. The general property tax is haphazard, ineffective, anddemoralizing to both tax officials and taxpayers. 400. DOUBLE TAXATION. --By double taxation is meant the taxation of anindividual or different individuals twice for the same thing. Doubletaxation is of two kinds. The first type of double taxation is illustrated by the taxation ofboth tangible property and the paper claim upon that property. Forexample, a state may tax a land-owner on his land, and also taxanother resident of the state on the mortgage which he holds againstthat land. Or it may happen that a state will tax the land, buildingsand other tangible equipment of a corporation, and at the same timetax those of its residents who hold stock in that corporation, _i. E. _individuals who hold paper evidence of ownership in the tangibleequipment of the corporation. More generally, however, this type ofdouble taxation arises when the holder of the paper claim resides inone state, while the tangible property lies in another state. In sucha case, it is common for one state to tax the paper claim, and for theother state to tax the property itself. This type of double taxationis manifestly unfair, and often imposes a ruinous burden uponproperty. The second type of double taxation is illustrated by the overlappingof similar taxes between state and state, or between Federal and stategovernments. Because it is the practice of most states to seek revenuewithout regard to the taxing activities of other states, or of theFederal government, it may happen that corporations, incomes, orinheritances are taxed by more than one agency of government. If ascientific and coördinated tax system were deliberately to provide forthis, the supposition would be that such taxation were reasonable andjust, because intended to bear with equal weight upon all forms ofproperty in the taxable class. But because such taxation is haphazard, it bears with unequal weight upon corporations and individuals, and istherefore unjust. Moreover, it encourages the evasion of tax burdens. Individuals andcorporations sometimes migrate from localities or states in which theyare subject to double taxation, to localities or states in which thedanger of such taxation is less. This in turn has the evil effect oftempting states and municipalities to neglect taxes on corporations, incomes, and inheritances for the sake of attracting wealthyindividuals and large industrial organizations from neighboring areas. B. SOME SUGGESTED TAX REFORMS 401. IDEALS OF TAXATION. --Summarizing the views of the more generallyaccepted writers on taxation, we may say that the following are thebasic ideals in taxation: Taxes should take as little as possible from the people and still meetthe needs of government. Taxes should be uniform, that is, all taxablearticles of the same class should be levied upon at the same rate. Itis also important that the time, manner, and amount of the tax shouldnot be arbitrary, but that the individual's convenience as regards theterms of payment should be considered. From the standpoint of thegovernment, taxes should be easy to administer and economical tocollect. A good tax system will be elastic, so that taxes may easily beincreased or decreased, according as the revenue needs of thegovernment change. The ability to pay ought to have some influenceupon the extent to which an individual is taxed. Taxes should adaptthemselves somewhat to the local sentiment as to what is expedient orsocially desirable. Finally, taxation policies should be systematized and coördinated. 402. ESSENTIALS OF A TAX SYSTEM. --The construction of an ideal taxsystem in this country would involve three steps. In the first place, each branch of government should be enabled tosecure revenues actually needed for justifiable purposes. In thisregard the greatest need is to increase the taxing powers of ourmunicipalities. This is imperative if the cities of the future are tocare for their citizens properly. A second fundamental step relates to the separation of taxing power. Each branch of government should pretty well confine its use of thetaxing power to definite types of taxable wealth. The Federalgovernment, for example, might secure most of its revenue from importduties, excises, an income tax, and stamp taxes of various kinds. Manytaxation experts believe that the states ought to confine themselvesmainly to license, corporation, inheritance, and, possibly, incometaxes. Local governments might well secure most of their revenue fromtaxes on franchises, licenses, and real estate. Such a separation oftaxing power might aid in the adjustment of fiscal needs to taxingpower, as well as helping to remedy the evil of double taxation. However, a complete separation of taxing powers is not necessarilydesirable, and certainly it is not practicable, for there is a growingtendency toward duplication in income, inheritance, and other taxes. At the present time, for example, not only the Federal government, butmany of the states levy income and inheritance taxes. A third fundamental step would be the coördination of local, state, and Federal taxing authorities. The central aim of such coördinationshould be so to distribute tax burdens that no form of taxable wealthwould escape its just burden, and so that no form of wealth would besubjected to unduly heavy taxation. There is a growing feeling that toprevent double taxation and similar evils, all local taxing bodiesought to be coördinated under the state authorities, while for similarreasons the Federal government ought to have some measure of directionor control over that share of state taxation which is interstate inits effects. 403. REFORM OR ABOLITION OF THE GENERAL PROPERTY TAX. --The reform ofstate and local taxation logically begins with the general propertytax. In many states attempts are being made to reform this tax. In somecases "tax ferrets" are employed to discover tax evaders, a policywhich may easily lead to corruption and favoritism. In other statesthe conviction is growing that local elective assessors ought to besupplanted by a permanent corps of state assessors, appointed underthe merit system. This would reduce the danger of unequal and unfairassessments. In other states there is a tendency to abandon the general propertytax altogether. In New York, Massachusetts, Pennsylvania, and otherstates, there is a marked tendency to turn over the general propertytax to local governing bodies. In such cases it is intended that thestate shall depend for most of its revenue upon income, corporation, inheritance, and license taxes. The future will doubtless see a more widespread tendency toward thereform or abolition of the general property tax. In some states, however, such changes in the taxation system require constitutionalamendment, and constitutional amendment is often a slow and tediousprocess. 404. REFORM IN LAND TAXATION. --Coupled with plans for the reform orabolition of the general property tax are proposals for the reform ofland taxation. A primary aim of these proposals, some of which suggestelements of the single tax doctrine, is to secure a more correctassessment of land values. In many cases a state does not now tax theholder of a mortgage when the mortgaged land is also within the stateand thus directly subject to taxation. This is a desirabledevelopment, but we ought to go still further, so that the holder of amortgage would not be taxed whether or not he lived in the same stateas the owner of the land. A mortgage is obviously not social wealth, but a paper claim on wealth, and this wealth ought not to be taxedtwice. Some authorities believe that the tax rate on land ought substantiallyto be increased, when it appears that such land is being held forspeculative purposes. To encourage improvements, it is also proposedthat certain permanent improvements on land be temporarily exemptedfrom taxation. Lastly, it would appear socially desirable to levyspecial taxes on urban sites, so as to secure for the community someshare of the future unearned increment. 405. THE INCOME TAX. --All taxes ultimately come out of income, butwhen we speak of an income tax we refer to a direct levy upon incomeas it arises, chiefly in the form of wages, salaries, and profits. AFederal income tax was levied during the Civil War, but in thenineties the Supreme Court held that such a tax violated theconstitutional provision that Congress shall not lay direct taxesexcept in proportion to the population of the states. In 1913 theSixteenth Amendment to the Constitution permitted Congress to lay andcollect taxes on incomes without apportionment among the severalstates, and without regard to any census or enumeration. Since 1913 Congress has passed several income tax laws, and a numberof the states have also adopted this form of taxation. The essentialfeatures of these laws are as follows. Incomes below a certain amountare exempt from taxation. The limit of untaxable income is raised formarried persons living together. In calculating their net income, individuals may make allowance for debts, business expenses, andcertain other items. Upon all taxable income above a certain minimumthere is then levied a flat rate, constituting a "normal" tax. Whereincomes exceed a certain amount, there is an additional tax. Thus theincome tax is said to be "progressive, " that is, the larger the incomethe higher the tax rate. Many benefits are claimed for the income tax. It falls upon those bestable to pay, and it is not easily evaded or shifted by the person uponwhom it is levied. It is elastic and can readily be increased orreduced according as revenue needs change. Its progressive characteris a feature which is considered socially desirable. The chief defects of the income tax are two. In the first place, theeffectiveness of the tax depends upon the willingness of theindividual to declare his full income. This is not always done, especially where the income tax is regarded as an undue interferencein the private affairs of the individual. Second, wealthy individualsoften migrate to states where there is either no income tax or only arelatively light one. This last defect of course applies only to thestate income tax. 406. THE INHERITANCE TAX. --Taxes upon inheritances have come intoprominence since the opening of the twentieth century. Since 1916 theFederal government has levied an inheritance tax. At the present timemost of the states also levy this form of tax upon property passing bywill or under the inheritance laws of the state. The essentialfeatures of the tax are everywhere the same. Small legacies aregenerally exempt. Legacies to direct heirs are either exempt, or aretaxed at a lower rate than are legacies to collateral heirs. The ratesare progressive, that is to say, they increase with the size of thelegacy. Many benefits are claimed for the inheritance tax. It brings in alarge revenue, and falls upon those who are best able to pay. The taxcannot be shifted and it cannot easily be evaded. It is easilyassessed and collected, because all wills must pass through theprobate court. It is held that the state has a social claim upon theproperty of an individual who has amassed wealth under the protectionof its laws, and that this property ought not to be transferred intactto those who did not aid in its accumulation. If carried too far the inheritance tax would undoubtedly discouragethe accumulation of wealth, but tax authorities are already guardingagainst this danger. On the whole, the inheritance tax is an importantaddition to our tax system. Its scope is being rapidly extended: ratesare being raised, the principle of progression is being morefrequently applied, and exemptions allowed direct heirs are beingreduced. The tax is increasingly used in the effort to redistributeunearned wealth, though the extent to which this is true depends verylargely upon local sentiment. 407. CORPORATION TAXES. --The rapid growth of American industry hasbeen accompanied by an enormous increase in the number and importanceof industrial corporations. The proper taxation of these bodies is nowchallenging the attention of both state and Federal governments. The difficulties of taxing corporations are two: First, how to preventthat form of double taxation which results from the fact that severalstates may levy taxes of varying weight upon interstate corporations. Second, how to prevent that form of double taxation which imposes aburden both upon the tangible property of the corporation and upon thestocks and bonds representing ownership in that tangible property. A number of taxation experts suggest meeting the last-named difficultyby exempting from taxation stocks, bonds, and other securities, and byimposing, instead, a tax directly upon the capitalization of thecorporation itself. In the case of corporations which are local and ofmoderate size, this might be effected by the reform of tax laws withina single state. Where, on the other hand, corporations are distinctlyinterstate in character, such reform would require either a carefulcoördination of the tax laws of the several states, or a corporationtax which should be purely Federal in character. The first difficulty mentioned above would likewise have to be met, either by the coördination of state tax systems, or by allowing taxeson interstate corporations to be levied solely by the Federalgovernment. It is claimed by some economists that the virtual impossibility ofeffectively coördinating the tax laws of the various states renders itimperative that all interstate corporations be taxed solely by theFederal government. In such a case the Federal government would betaxing interstate corporations partly for its own benefit, and partlyas the agent of the various states. It is said also that such aFederal tax should be levied on corporations at the source, _i. E. _upon capitalization rather than upon stocks and bonds. Being appliedat the source, it would reach all forms of corporation wealth. Itwould be easy and economical to administer. So far as corporations areconcerned, a purely Federal tax on interstate corporations mightprevent both forms of double taxation. Even though the states consented to a purely Federal tax on interstatecorporations, however, it might prove difficult for state and Federalgovernments to agree upon a fair division of the joint revenuesderived from such a tax. QUESTIONS ON THE TEXT 1. Why is the cost of government increasing? 2. Name some sources of public revenue. 3. What is a tax? 4. What is the fundamental defect of American taxation? 5. In what way is there an inadequate apportionment of taxing power tofiscal needs in American government? 6. What is the chief difficulty of tax assessment? 7. Why is it difficult to tax intangible property? 8. Enumerate the fundamental defects of the general property tax. 9. Distinguish between the two forms of double taxation. 10. Outline some fundamental ideals in taxation. 11. What are the three steps necessary in the formulation of asatisfactory tax system in this country? 12. To what extent is the general property tax being reformed orabolished? 13. Discuss the reform of land taxation. 14. Describe the nature of the income tax. 15. What are the benefits and defects of such a tax? 16. Describe the inheritance tax. What are its benefits? What are itsdangers? 17. What are the two difficulties in the way of taxing corporations?What are some suggested methods of meeting these difficulties? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxxii. Or all of the following: 2. Bullock, _The Elements of Economics_, chapter xv. 3. Ely, _Outlines of Economics_, chapter xxxiv. 4. Fetter, _Modern Economic Problems_, chapter xvi. 5. Guitteau, _Government and Politics in the United States_, chapterxvii. QUESTIONS ON THE REQUIRED READINGS 1. Classify the purposes of public expenditures. (Guitteau, pages 187-188. ) 2. What is the "police function" of government? (Fetter, page 241). 3. What is a franchise tax? (Guitteau, pages 201-202. ) 4. What is the "magic fund" delusion? (Bullock, page 370. ) 5. Distinguish between proportional, regressive, and progressivetaxation. (Bullock, page 373. ) 6. What is an excess profits tax? (Bullock, pages 382-383. ) 7. What is the importance of the license tax? (Bullock, pages 392-393). 8. Distinguish between direct and indirect taxation. (Ely, pages 710-711. ) 9. What are "taxes on transactions"? (Ely, pages 719-720. ) 10. What ismeant by the shifting or incidence of taxation? (Fetter, pages 252-253. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a list of enterprises supported out of public funds andproviding services free to all, regardless of the payment of taxes. 2. Discover which of the following taxes are levied in your state:general property tax, income tax, inheritance tax, poll tax, licensetax, transaction tax, sales tax, luxury tax, mortgage tax, franchisetax, excess profits tax. 3. Are tax assessors in your locality appointed or elected? Are therecounty or state boards of equalization in your state? How are theseboards chosen? 4. Interview a friendly tax assessor concerning the difficulties ofdetermining property values. Does he believe that peoplesystematically undervalue their own property? What proposals does hemake for the reform of the present method of assessment? 5. Interview a friendly taxpayer. What is his attitude toward the polltax? the general property tax? the income tax? What proposals does hemake for the reform of taxation in your state? 6. The general property tax in your state. 7. Status of the income tax in your state. 8. Status of the inheritance tax in your state. 9. The taxation of corporations in your state. II 10. Federal revenues. (Guitteau, _Government and Politics in theUnited States_, chapter xxix. ) 11. Public expenditures. (Ely, _Outlines of Economics_, chapterxxxi; Seager, _Principles of Economics_, chapter xxvi; Plehn, _Introduction to Public Finance_, Part II, chapter i; Bullock, _Selected Articles on Public Finance_, chapter iii; Ford, _The Costof Our National Government_. ) 12. The power of Congress to tax. (Young, _The New AmericanGovernment and its Work_, chapter v; Beard, _American Government andPolitics_, chapter xiii. ) 13. Taxation in American cities. (_Annals_, vol. Xxviii, pages 155-172. ) 14. Personal taxes. (Fetter, _Modern Economic Problems_, chapterxviii. ) 15. The poll tax. (Bullock, _Selected Articles on Public Finance_, chapter x. ) 16. Breakdown of the general property tax. (Taussig, _Principles ofEconomics_, vol. Ii, chapter lxix. ) 17. Protection against improper state taxation. (Young, _The NewAmerican Government and its Work_, chapter xxv. ) 18. Double taxation. (Seligman, _Essays in Taxation_, chapter iv. ) 19. The corporation tax. (Seligman, _Essays in Taxation_, chapters viand vii. ) 20. Separation of state and local revenues. (Seligman, _Essays inTaxation_, chapter xi; Bullock, _Selected Articles on Public Finance_, pages 445-460. ) 21. Excises. (Plehn, _Introduction to Public Finance_, chapter vi. ) 22. Customs duties. (Plehn, _Introduction to Public Finance_, chaptervii. ) 23. The excess profits tax. (_Annals_, vol. Lxxvii, pages 147-159. ) 24. The incidence of taxation. (Plehn, _Introduction to PublicFinance_, chapter xi. ) 25. Financing the United States in the World War. (Plehn, _Introduction to Public Finance_, Part iv; _Annals_, vol. Lxxvii, all. ) FOR CLASSROOM DISCUSSION 26. As a principle of taxation, which is more important, the paymentof taxes according to the benefit derived, or payment according toability? 27. What is the remedy when individuals conceal from the taxauthorities the amount of their intangible wealth? 28. Does the income tax constitute an undue interference in theprivate affairs of the individual? 29. To what extent does the inheritance tax tend to discourage theaccumulation of wealth? 30. To what extent should the poor be taxed? 31. Can the adequate taxation of corporations be secured withoutresorting to a corporation tax which shall be purely Federal incharacter? 32. Should the national debt be paid? (See Bullock, _Selected Articleson Public Finance, _ chapter xxiv. ) B. MAKING GOVERNMENT EFFECTIVE CHAPTER XXXIII WHO SHALL SHARE IN GOVERNMENT? 408. DISTINCTION BETWEEN CITIZENSHIP AND THE SUFFRAGE. --Citizenshipimplies membership in a nation. A citizen owes allegiance to hisgovernment, and in return is entitled to the fundamental advantages oforganized government, such as the protection of life, liberty andproperty at home and abroad. Suffrage, on the other hand, is theprivilege of sharing in government by the exercise of the vote. Mostvoters are also citizens, but less than a third of the citizens of theUnited States are voters. Citizenship is determined by the Federalauthorities, the Constitution declaring that all persons born ornaturalized in the United States are citizens thereof. The suffrage isa privilege which is controlled by the individual states, subject tocertain regulations imposed by the Federal government. 409. SIGNIFICANCE OF THE SUFFRAGE. --In a representative democracy suchas the United States, the question of the suffrage is of fundamentalimportance. Public officials are agents which have been chosen toadminister the affairs of government. Every public official in theUnited States is either chosen directly by the people, or is chosen byagents who themselves have been selected at the polls. The right tovote is thus the right to share in the control of government. And notonly are voters making rules and regulations for their own government, but they are governing those citizens to whom the suffrage has notbeen extended. It is because of this double responsibility restingupon the American voter that a fundamental problem of effectivegovernment is concerned with the suffrage. 410. SUFFRAGE IN THE SEVENTEENTH AND EIGHTEENTH CENTURIES. --Incolonial times the American suffrage was narrowly restricted. Thoughthe theory that all men were free and equal was known in politicalcircles, the actual conduct of government was largely in the hands ofthe propertied classes. With a few exceptions, no Negro was allowed tovote. As a general rule, women were also debarred from the suffrage. Even white adults were denied the exercise of the suffrage unless theycould meet certain property and religious qualifications. The Declaration of Independence laid emphasis upon the principle thatgovernments derive their just powers from the consent of the governed. Nevertheless this principle was not held to apply to the internalpolitics of the American states, and so there was at this time nowidespread feeling that all adults had an equal right to share ingovernment. In an important sense, the American Revolution was foughtto maintain the principle that England could not govern the colonieswithout their consent. But here again it should be noted that none ofthe states that won independence interpreted that principle to meanthat all of their free adult citizens had a right to govern themselvesthrough the vote. Colonial standards of suffrage were largely carriedover into our earlier national history, and in 1789 probably less thanfive per cent of the American people were voters. Interpreted in termsof the suffrage, American democracy was still very narrowlyrestricted. 411. SUFFRAGE AS A NATURAL RIGHT. --According to the doctrine ofnatural rights, all men are born free and equal, and are entitled tocertain fundamental rights of which they may not be deprived. Many ofthe colonists were familiar with this theory, but not until after 1800did it constitute an important basis for maintaining that all adultwhite males were entitled to the suffrage. After the opening of thenineteenth century, however, it was more common for propertyless mento maintain that just as they had a natural right to life, liberty, and the pursuit of happiness, so they had a natural right to thesuffrage. The principle that governments derive their just powers fromthe consent of the governed was by many interpreted to mean that menpossessing property had no right to govern men who could not meet theproperty qualifications accompanying the suffrage. The cry of "Notaxation without representation, " was also raised in the interests ofwhite adult males who paid taxes, but who were not allowed to vote. 412. EXTENSION OF THE SUFFRAGE IN THE NINETEENTH CENTURY. --During thefirst three quarters of the nineteenth century, the suffrage widenedsteadily. Religious qualifications practically disappeared before1850. After a long drawn out struggle most of the eastern statespractically eliminated the property qualification from their suffragelaws. This change was due, in large part, to the influence of thedoctrine of natural rights. There were additional factors, of course. In many places along the Atlantic seaboard, for example, the extensionof the suffrage was somewhat in response to the influence of thedoctrine of natural rights, but it was also partly due to the economicpressure exerted by the increasing number of landless laborers whowere crowding into the manufacturing cities and towns. The extension of the suffrage during this period is closely associatedwith the development of the West. Whereas the eastern states removedproperty and religious qualifications only after a struggle, manywestern states imposed few or no restrictions upon the suffrage, butfrom the start were committed to the principle of equality at thepolls. The doctrine that governments derive their just powers from theconsent of the governed was popular in the West; indeed, it was herethat the doctrine was first applied to the problem of suffrage in adefinite and practical manner. In the more sparsely settled portionsof the country, able-bodied men were more important than socialdistinctions and religious ties, so much so, in fact, that some of thewestern states attracted settlers by giving the vote to aliens who hadannounced their intention of becoming citizens. After the Civil Warsome of the southern states made similar advances to Europeanimmigrants. After the Civil War the suffrage movement was profoundly affected bythe Negro question. The Thirteenth Amendment, adopted in 1865, hadmerely abolished slavery. In the subsequent discussion over the statusof the Negro, some white men held that the theory of natural rightsentitled the freed Negroes to the suffrage. This view was opposed bymany, particularly in the South. Nevertheless, in 1868 the FourteenthAmendment to the Constitution provided that any state denying any ofits male adult citizens the right to vote might suffer a reduction inits congressional representation. Two years later (1870) the FifteenthAmendment went a step further, and declared that the right of citizensof the United States to vote might not be denied or abridged onaccount of race, color, or previous condition of servitude. The nineteenth century also witnessed an increased interest in womansuffrage. The proposition was not unknown even in colonial times, butthe earlier state constitutions and statutes had almost invariablyexcluded women from the vote. After the middle of the century thewoman suffrage movement grew rapidly, stimulated, to a considerableextent, by the movement for abolition and Negro suffrage. In 1852Susan B. Anthony assumed leadership of the woman suffrage movement, and in 1875 she drafted a proposed amendment to the FederalConstitution which would provide for woman suffrage throughout thecountry. The territory of Wyoming had extended women full suffrage in1869, and a decade later the right to vote in school elections hadbeen extended the women of Michigan, Minnesota, and several otherStates. By 1896 Colorado, Idaho, and Utah had extended full suffrageto women. 413. DECLINE OF THE NATURAL RIGHTS THEORY. --During the latter half ofthe nineteenth century the doctrine of natural rights was of decliningimportance as a basis of the suffrage. The doctrine was illogical, fornot even its most ardent advocates would go so far as to maintain thatpaupers and mental defectives had an inherent right to vote. Nor didanyone claim that persons under twenty-one years of age had such aright. As time went on, the connection between the suffrage and the doctrineof natural rights seemed more and more remote. Men came gradually tobelieve that the suffrage was not a right but a _privilege_, and thatthe capacity of the individual to use the vote in the public interestwas the factor which should determine whether or not he should enjoythe suffrage. This changed viewpoint reflected itself in severalimportant shifts in the suffrage movement. 414. SHIFTS IN THE SUFFRAGE MOVEMENT. --To a considerable extent thedecline of the doctrine of natural rights was accompanied by increasedrestrictions upon the right to vote. We have noted that many westernand a few southern states formerly made a practice of extending thevote to aliens who had announced their intention of becoming citizens. After the seventies there was a tendency for such states to withdrawthis privilege, and to make citizenship a prerequisite to voting. Onereason for this changed attitude was that as time went on immigrantlabor was less in demand in the West and South. Still another factor, however, was the abuse of the ballot among unassimilated immigrantgroups in our cities. After the middle of the nineteenth century, there was a growingfeeling, originating in New England and spreading westward, thatilliterate voters were a menace to sound government. Accordingly, educational tests were imposed in a number of states. These testsgenerally require voters to be able to read and write. The enfranchisement of the Negro was followed by reaction. Theexercise of the suffrage by ignorant Negroes suddenly admitted to fullsuffrage, resulted in gross abuses of political power. As a resultmany southern states eventually passed laws which virtually deny thevote to the larger part of the possible Negro electorate. In somecases white election officials administer the educational test sostrictly as to exclude most Negroes. In other cases a property or polltax qualification has been used to exclude large groups of shiftlessNegroes. In still other cases a "grandfather clause" in the stateconstitution exempts from the educational test all who are descendantsof persons voting before the Civil War. This allows white illiteratesto vote, but excludes illiterate Negroes. On the other hand, the cause of woman suffrage was greatly stimulatedby the decline of the doctrine of natural rights and the rise of thetheory that civic capacity should determine the suffrage. Particularlyafter 1900 did the agitation take on national importance. A nationalWoman Suffrage Association was organized, and powerful pressure wasbrought to bear upon persons of political influence. Between 1910 and1912 Washington, California, Oregon, Kansas, and Arizona were won tothe cause of woman suffrage. Finally in August, 1920, the amendmentwhich Miss Anthony had drafted in 1875 was ratified and declared inforce. Women are now allowed the vote on the same terms as men. 415. PRESENT RESTRICTIONS ON THE RIGHT TO VOTE. --The suffrage in theseveral states at the present time may be summarized as follows: In every state voters must be at least 21 years of age. In a fewstates the vote is extended to aliens who have declared theirintention of becoming citizens. In every state a period of residenceis required of voters, the usual period being between six months and ayear. Educational qualifications are imposed in about a third of thestates. A number of southern and a few northern states require votersto be assessed for a poll tax. In practically every state suchabnormal persons as the feeble-minded, the insane, paupers ininstitutions, and certain types of criminals are excluded from thesuffrage. Untaxed Indians, and foreign-born Chinese and Japanese donot enjoy the suffrage. 416. PRESENT STATUS OF THE SUFFRAGE MOVEMENT. --The suffrage movementhas steadily increased the number of potential voters until at thepresent time there are more than 30, 000, 000 persons in the UnitedStates who are entitled to the vote. The important groups of the adultpopulation have been enfranchised, but the suffrage movement stillinvolves important problems. In view of our changing attitude towardthe suffrage we face four unanswered questions: First, should the present restrictions on the suffrage be lowered?Second, should they be made more severe? Third, in view of the factthat naturalization automatically makes voters of many individuals, towhat extent ought the grant of citizenship to be determined by theindividual's promise as a voter? Fourth, what should be our attitudetoward Negro suffrage? Let us summarize the fundamental considerations which must be borne inmind in discussing the four problems suggested above. This done, wemay briefly consider the most pressing of these questions, _i. E. _ thatinvolving Negro suffrage. 417. THE SUFFRAGE IS A PRIVILEGE AND NOT RIGHT. --The significance ofthe difference between citizenship and the suffrage should be clearlyunderstood. Citizenship is a fundamental matter. In return forallegiance to his government, the citizen may be considered as beingentitled to that measure of protection which is deemed necessary tohis safety and well-being. But though we speak loosely of the "right"of suffrage, the suffrage is a privilege, not a right. The individualcannot claim it as a corollary of citizenship. Nor does mere residencein a democratic country entitle the individual to the ballot. Thesafety and well-being of the citizen are not necessarily dependentupon his exercise of the vote. Indeed, incapable persons may be betteroff if they are excluded from the suffrage, provided, of course, thatthe voting class holds itself responsible for the government of theexcluded groups. Fitness alone justifies the suffrage. 418. WHAT CONSTITUTES FITNESS?--The ballot cannot be exercised by theunfit without endangering the whole fabric of government. But what isthe standard of fitness? The history of the suffrage in the UnitedStates throws some light upon this question. In colonial times theplea of the propertied classes was that fitness was primarily a matterof racial origin, the ownership of property, or church affiliation. According to the theory of natural rights, fitness was vaguelyassociated with manhood and citizenship. More recently we have come tobelieve that while many factors influence the capacity of the voter, such factors as religion, racial origin, and ownership of substantialamounts of property, are not vital. A definite standard of fitness hasnever been established, but at least we can say that fitness meansboth the desire and the capacity to serve the state by an honest andintelligent use of the ballot. 419. THE QUESTION OF NEGRO SUFFRAGE. --We are beginning to suspect thatthe attention attracted by Negro suffrage is due, not so much to theinjustice of disfranchising the Negro as to the spectacularcircumstances surrounding the American Negro. It is unjust, of course, to exclude the Negro from the vote merely because of his race. Butexclusion of Negroes not qualified to make an intelligent use of theballot is no more unfair than are the educational tests imposed bymany northern states. To exclude illiterate Negroes from the vote, andat the same time to allow illiterate whites the ballot, is, on theother hand, manifestly unfair. But far more productive of good thandebating this unfairness is the attempt to fit the Negro for the voteas a prerequisite to his exercise of it. During this preparation theNegro should have before him the incentive of securing the ballot whenhe has made sufficient progress in education and civic responsibility. 420. PROBLEM OF AN INTELLIGENT ELECTORATE. --The problem of building upan intelligent electorate gives rise to two additional questions:First, how may the enfranchised classes be trained to a fullrealization of their civic responsibilities? Second, to what extent isintelligent voting dependent upon actual exercise of the suffrage? Thefirst question has been treated elsewhere, and we may close thischapter with a brief consideration of the second question. It is maintained by some that no one should be admitted to thesuffrage who has not first demonstrated his capacity to use the voteintelligently. Others reply that this capacity comes only throughactual exercise of the vote. The solution of this problem probablylies in a judicious combination of theory and practice. A boy cannotlearn to swim by standing on the bank and forever listening totheoretical instruction; on the other hand, it may prove fatal to pushhim into deep water without preparation for that step. Instruction andpractice must go hand in hand, wisely interwoven and harmonized. Similarly, it would seem, one way to secure an intelligent electorateis to admit individuals to the suffrage only when they demonstrate aminimum capacity for civic service, but at the same time to recognizethat _full_ moral development can come only through actual exercise ofthe vote. QUESTIONS ON THE TEXT 1. Distinguish between citizenship and the suffrage. 2. Why is the suffrage important in a representative democracy? 3. Discuss the suffrage in colonial times. 4. What was the probable extent of the suffrage in 1789? 5. What is the doctrine of natural rights? 6. How was this doctrine applied to the question of the suffrage? 7. Why was the suffrage in the eastern states widened in thenineteenth century? 8. Discuss the suffrage in the new West. 9. Describe the enfranchisement of the Negro. 10. Outline the early development of the woman suffrage movement. 11. Discuss the decline of the natural rights theory. 12. Outline some recent shifts in the suffrage movement. 13. Enumerate the present restrictions on the right to vote. 14. What is the present status of the suffrage movement? 15. What is meant by saying that the suffrage is a privilege and not aright? 16. What is meant by saying that "fitness" is the basis of thesuffrage? 17. What can be said as to the question of Negro suffrage? 18. To what extent does intelligent voting depend upon actual exerciseof the ballot? REQUIRED READINGS 1. Williamson, _Readings in American Democracy, _ chapter xxxiii. Or all of the following: 2. Beard, _American Citizenship, _ chapter vi. 3. Cleveland, _Organized Democracy, _ chapters x and xii. 4. Porter, _A History of Suffrage in the United States, _ chapter i. 5. Seymour, _How the World Votes, _ vol. I, chapters i and ii. QUESTIONS ON THE REQUIRED READINGS 1. What is the relation of political to civil liberty? (Beard, pages64-65. ) 2. Name some groups of people who were excluded from the suffrage incolonial times. (Porter, page 5. ) 3. What were some of the early arguments for giving propertyless menthe vote? (Beard, pages 66-67. ) 4. What was Dorr's Rebellion? (Beard, page 69. ) 5. What is the significance of the "foreign vote"? (Beard, pages 73-74. ) 6. What are the four theories of suffrage? (Seymour, pages 1-2. ) 7. In what form did the suffrage enter the American colonies?(Seymour, page 9. ) 8. What theory of suffrage supplanted the theory of natural rights?(Seymour, pages 13-14. ) 9. What effect has the suffrage upon the individual? (Seymour, pages15-16. ) 10. Discuss the educational test. (Cleveland, pages 172-174. ) 11. To what extent is bearing arms against the country adisqualification for voting? (Cleveland, page 176. ) 12. What is the purpose of compulsory voting? (Cleveland, pages 176-178. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Civil rights guaranteed by the constitution of your state. 2. History of woman suffrage in your state. 3. Citizenship as a prerequisite for voting in your state. 4. Present restrictions on the right to vote in your state. 5. List the groups or classes of people in your community who are notallowed to vote. What is the proportion of these classes to the totalpopulation of the community? What per cent of these excluded classesare aliens? What is the basis for exclusion in each case? Would youfavor the extension of the vote to any of these groups? Explain. II 6. Colonial suffrage. (McKinley, _The Suffrage Franchise in theThirteen English Colonies in America_; Cleveland, _OrganizedDemocracy_, chapter x. ) 7. Dorr's Rebellion. (Consult any standard text on American history oran encyclopedia. ) 8. Suffrage and the frontier. (Seymour, _How the World Votes_, vol. I, chapter xi. ) 9. Property and tax-paying qualifications in the nineteenth century. (Porter, _A History of Suffrage in the United States_, chapters ii-iv. ) 10. Woman suffrage in the nineteenth century. (Consult Porter, Seymour, or the _Cyclopedia of American Government_. [Footnote:Throughout the remainder of this text the student will find it to hisadvantage to make frequent use of the _Cyclopedia of AmericanGovernment_, edited, in three volumes, by A. C. McLaughlin and A. B. Hart. N. Y. 1914. Appleton and Company. This cyclopedia will furnishconsiderable material for students seeking either general informationon political subjects, or special information for topic work. ]) 11. History of the Nineteenth Amendment. (Consult American Yearbooks, and also newspaper files for August, 1920. ) 12. Effect of the Fourteenth and Fifteenth Amendments upon thesuffrage. (Kaye, _Readings in Civil Government_, pages 113-116. ) 13. Negro suffrage. (Consult an encyclopedia, or any standard work onAmerican government. ) 14. Types of individuals who are excluded from the suffrage. (Cleveland, _Organized Democracy_, chapter xii. ) 15. Duties of the American voter. (Forman, _The American Democracy_, pages 14-15. ) FOR CLASSROOM DISCUSSION 16. To what extent is the doctrine of natural rights still influentialin American political discussions? 17. Do you favor an amendment to the Federal Constitution, providingthat no state may extend the suffrage to persons who are not citizensof the United States? 18. How long should a potential voter be required to live in a statebefore being allowed to exercise the ballot? 19. To what extent does the educational test show the fitness of theindividual to make the right use of his vote? 20. Should all convicted criminals be denied the vote during theremainder of their lives? 21. Just what constitutes fitness for the suffrage? CHAPTER XXXIV THE POLITICAL PARTY 421. NATURE OF THE POLITICAL PARTY. --A political party may be definedas a voluntary association of voters, entered into for the purpose ofinfluencing elections to public office. The individuals comprising aparty have certain broad political principles in common, and thesethey seek, by organized effort, to have applied to actual government. Just as individuals differ on matters of business or religion, so itis human nature for the voters of a community to form varying opinionsas to the nature, functions, and methods of government. And just asmen tend to draw away from those with whose opinions they do notagree, so they tend to draw toward those with whom they are inagreement, and with whose coöperation they may advance principles ofmutual interest. It is this natural tendency of men, first, to differwith one another, and second, to form associations for the advancementof mutual aims, that has led to the formation of political parties. 422. DEVELOPMENT OF PARTIES IN THE UNITED STATES. --The Americanpolitical party is older than the nation. Differences of politicalopinion divided the American colonists into Whigs and Tories. Later, party spirit was manifested in the formation of the Revolutionarycommittees of correspondence. The struggle over the Constitution of1787 divided men into Federalists and Anti-Federalists. The questionof a broad or a strict construction of the constitution, the tariff, and the problem of slavery in the territories, --these are a few of thegreat national issues that have influenced party lines. Before theCivil War party spirit had extended to all parts of the country, evidencing itself in a number of party organizations. Many of theseorganizations proved temporary, but since the Civil War party lineshave been relatively fixed. For more than a half century there havebeen two great parties, the Democratic and the Republican. Thirdparties have been either temporary or relatively unimportant. 423. PARTY ORGANIZATION. --There is no constitutional basis orprovision for American political parties, nevertheless each of thegreat parties has built up a powerful organization which coördinatesparty members in every part of the country. In practically everytownship, village, election district, and city ward there are partyagents and local committees whose work it is to promote the interestsof the party both at election time and between elections. The localparty workers constitute a link between individual voters and thecounty or State committees, while these latter groups in turn connectwith the national committee of the party. It is the work of all those officially connected with this centralizedorganization to win adherents to the party standard, to place issuesbefore the voters, to stimulate interest in candidates, to organizemeetings and clubs, to collect funds for party support, to secure theregistration of voters, and to see that they get to the polls. Partyopinion is formed by means of personal contacts, campaign literature, speeches, parades, and every manner of propaganda. Party opinion isformally expressed through the caucus, the primary, the convention, and the regular election. (See Sections 435-438. ) 424. SERVICES PERFORMED BY THE POLITICAL PARTY. --The political partyperforms three great services. [Footnote: The following arrangement ofthe services of the political party was suggested to me by ProfessorW. B. Munro, of Harvard University. For a fuller discussion seeChapter XXII of his _The Government of the United States_, TheMacmillan Company, New York, 1919. ] The first of these is that the party provides machinery which bridgesover the gaps between local, state, and National government. Similarly, it often serves to bring the executive, legislative, andjudicial branches of government into harmony with one another. Thecheck and balance system so divides authority in American governmentthat in many ways the different branches and divisions of governmentare uncoördinated. The party facilitates the working of Americangovernment because party members affiliated with one division ofgovernment will tend to coöperate with members of the same party whomay be in control of other divisions of government. For example, aDemocratic governor tends to coöperate with the Democratic members ofthe state legislature. Similarly, a Republican President will tend towork in harmony with those members of his party who are in control ofpurely state government. The second great service performed by the party is that it formulatespublic issues and presents them in concrete shape to the voters. Justas in industry it is the function of the entrepreneur to coördinatethe other factors of production, so in government it is the functionof the politician to act as a coördinator. Indeed, President Lowellcalls the politician a broker, without whose services populargovernment would be impossible. If voters went to the polls with noprevious agreement as to candidates or issues, but each determined tovote for whomever he liked, thousands of names might be found on theballot. If a majority were required to elect, no individual would bechosen. The party thus performs a valuable service by formulatingthose principles which will attract the greatest number of voters, andby definitely associating those principles with particular candidates. These issues and these candidates the party places squarely before theelectorate, to the exclusion of minor issues and unimportantcandidates. The party is thus a means whereby democracy makes up itsmind, and expresses that mind with a minimum of confusion anddisorder. The third great service of the political party is that it provides ameans of collective and continuing responsibility in politics. If acandidate were not affiliated with any political party, misbehavior inoffice might result in his removal or in his failure to securereëlection. But here responsibility would end. When, on the otherhand, the party selects, supports, and vouches for a candidate, theparty constitutes a definite and permanent pledge to the voters. Thusthe party is stimulated to select its candidates carefully, lest theirincompetence or dishonesty fatally injure the reputation of the party. The past exploits of the party are appropriated for future campaigns;conversely, the failure or misbehavior of an officeholder will bepointed out by his political enemies as typical of the party to whichthe unfortunate man belongs. 425. THE ABUSE OF PARTY POWER. --Though party government conferssubstantial benefits, it is likewise true that the power of thepolitical party has been frequently abused. American partyorganizations sprang up silently, and developed largely without legalcontrol. Increased power has been accompanied by diffusedresponsibility; increased power and diffused responsibility have ledto the abuse of power. The evils of the party are numerous, and onlythose of fundamental importance can be discussed in this text. Some ofthese evils will appear in successive chapters; a few may be treatedhere. In every case, it should be borne in mind, the basic defect ofparty government is that the party has tended to use its powerprimarily for private rather than public ends. 426. CAMPAIGN CONTRIBUTIONS. --Throughout much of our national historyone of the great evils of the political party has had to do withcontributions to the campaign fund. A few decades ago it was thecustom of parties, not only to accept large sums of money from specialinterests, but actually to demand substantial contributions fromrailroad and other corporations on pain of unfriendly legislation whenthe party got into power. In our cities gambling houses and othervicious interests habitually contributed to the campaign fund of theparty, with the understanding that the party so supported would, ifsuccessful at the polls, protect these unlawful businesses. Largeamounts were also secured from officeholders who feared to incur theill will of the party by refusing to contribute to the campaign fund. The enormous sums got together from these various sources were used tofinance election contests, the peak being reached when in thepresidential election of 1896 the Republican party is said to havespent more than $7, 000, 000. The source of most of this sum was unknownto the general public. Fortunately, recent legislation has remedied a considerable measure ofthe evils attending unrestricted contributions to the campaign fund. Laws now prohibit party agents from seeking contributions from theholders of Federal civil service offices. In 1910 and 1911 Congresspassed Acts providing that a candidate for Representative to Congressmay not expend more than $5000 toward his election, while a UnitedStates Senator may not spend more than $10, 000 for a similar purpose. Other laws specify the purposes for which campaign money may be spent. In presidential and congressional elections the treasurer of thenational committee of each party must now report the entire campaignfund contributed and expended, giving the name of every individualcontributing over $1000, and also furnishing an itemized statement ofall expenditures over $10. This report is filed with the clerk of theHouse of Representatives, and is open to the public. There can be no doubt but that these and similar laws have operated todeprive the campaign fund of many of its illegitimate features. Mostof the money now expended by parties is secured from a large number ofsmall contributions. This not only lessens the control of partypolicies by special interests, but it also serves to make the partymore responsible to the rank and file of the organization. 427. PARTY DOMINATION OF NOMINATIONS AND ELECTIONS. --A great problemof party government is to prevent parties from unduly influencing thechoice of public officials. Leaving until later the general questionof nominations and elections, it may be pointed out here that veryoften the whole weight of party power is directed toward securing theelection to office of candidates deemed desirable by the partymachine. The political "boss" has consistently used his power tomanipulate the caucus or the primary so as to advance his owninterests at public expense. Caucuses have been held without propernotice being given, and party henchmen have been employed to work foran inside clique or ring. Formerly the rolls of party members werepadded with the names of men dead or absent. Too often elections werecharacterized by the stuffing of ballot boxes, the intimidation orbribery of voters, and the practice of voting more than once. Theeffect of these and similar practices has been to thwart the will ofthe majority of party members, and to elevate self-interest above thegeneral welfare. The last few decades of American political history have beencharacterized by a number of laws designed to safeguard the process ofnomination and election. In practically every state in the Union thereare corrupt practices acts which aim not only to prevent the misuse ofthe campaign fund, but to control the party in other respects also. Inall but two states registration is a prerequisite to voting. Theintroduction into this country of the Australian ballot, and its rapidspread among the states after 1890, has made the ballot secret. Bypreventing the intimidation of the voter, and by otherwisesafeguarding his rights at the polls, ballot reform has remedied manyabuses which formerly resulted in illegal and unrepresentativeelections. Bribery and illegal voting are no longer glaring evils. Itis now the general practice for state laws to provide definite pollingplaces, and to guard the receiving and counting of the ballots. 428. THE SPOILS SYSTEM. --During the first forty years of our nationallife it was taken for granted that subordinate executive officialsshould continue in office during good behavior, regardless of a changeof administration. After President Jackson's first term, however, itbecame the general practice for the incoming party to use offices toreward party supporters. Senator Marcy's original declaration that "tothe victor belongs the spoils, " was accepted by both Democratic andRepublican parties. Each party, upon coming into power, habituallyturned out appointive officials placed in office by the oppositionparty. The positions thus made vacant were filled by individuals fromthe ranks of the victorious party. The spoils system is a serious evil for which party spirit must beheld accountable. By virtue of their patronage, party leaders haveexercised an undue influence over the rank and file of the party. Frequently a candidate has been named for office, not because hepossessed marked capacity for public service, but because he showedpromise of being a good vote-getter at election time. Very frequently, therefore, officeholders have secured their positions as the reward ofparty support, rather than because of merit. The spoils system hasencouraged the holders of executive offices to pay more attention tothe political fortunes of their party than to their public duties. Knowing that with a change of administration they would probably beousted to make room for the supporters of the rival party, officialshave been tempted to use public office for personal ends. The spoils system still constitutes a defect in American government. Nevertheless something has been done toward eliminating its worstfeatures. The Civil Service Act of 1883 provided that more than 12, 000Federal executive offices should be filled by competitive examinationsrather than by political appointment. The Federal Civil Service Systemhas been subsequently extended until at the present time about twothirds of the administrative offices in the Federal government arefilled on the merit plan. In many sections of the country the meritplan has also been used to fill state and municipal offices. Though asyet limited in scope, it would appear that the future will see asteady expansion of the merit plan in local and state as well as inthe National government. The essential feature of this system, whether in local, state orNational government, is that officeholders secure their positions onthe basis of individual merit. In theory at least, they are littleaffected by changes of administration. Both retention of office andpromotion are on the basis of merit, though the standards by whichappointees are judged have not yet been perfected. 429. EXTENSION OF FAVORS TO SPECIAL INTERESTS. --The tendency of thepolitical party to extend special favors to private corporations hasconstituted a serious evil in American politics. In some instancespowerful corporations have corrupted party politics; in other casesparty organizations have blackmailed corporations under the threat ofunfriendly legislation; in many other cases both party andcorporations have been to blame. In every case, however, the essentialfact is that often the party has been used for the advancement ofspecial interests rather than to promote the general welfare. Unfavorable legislation has been bought off and favorable laws securedby trusts, public service corporations, and other large industrialinterests. Exemption from prosecution has been purchased by gamblinghouses and other illegal businesses. Public service corporations havesecured valuable franchises for inadequate consideration. Contractsfor paving and other public works have many times been awarded, not tofirms offering the best work at the lowest price, but to incompetentor dishonest corporations. Such contracts have been secured by thesecorporations because of favoritism shown them by political henchmenholding office under the spoils system. Notable headway has been made in checking these evils. The regulationof the railroads by the Interstate Commerce Commission renders itdifficult for railroad corporations unduly to influence partypolicies. Anti-trust legislation has similarly checked the politicalactivities of other great industrial combinations. There is a growingtendency for states to pass laws forbidding or restricting themaintenance of lobbies in legislative halls. Many recent stateconstitutions narrowly restrict the franchise-granting power. Corruptpractices acts forbid party contributions from corporations. The CivilService System renders less easy the unfair award of governmentcontracts to private corporations. 430. DECLINE OF PARTY ABUSES. --It is clear that the development ofparty government in this country has been attended by importantbenefits and serious evils. But the best authorities agree that themerits of the party system outweigh its defects. Hence our problem isnot how to destroy the system, but how to regulate it so that we maysecure the benefit of its services and avoid the evil results of itsdefects. The experience of the last half century is heartening, and itmust be admitted, not only that party abuses have declined, but thatthere is good reason to believe that they will continue to decline. Inour attitude toward the political party we must distinguish, as Burkedistinguished, between the legitimate form of the party and itsperverted form. The perverted forms of party organization call forcensure and attack; the legitimate features of the party deserve ourappreciation and support. 431. DUTY OF PARTY SUPPORT. --Parties seem to be inevitable, for no onehas yet shown how representative government can be carried on withoutthem. Since the average voter cannot make his influence felt exceptthrough organization and mass action, it is, as a rule, as futile forthe individual to cast his vote regardless of party affiliations as itis for a soldier to fight without regard for army discipline andorganization. Parties are the result of compromises, and theindividual must be willing to shelve minor issues for the sake ofuniting with his fellows upon vital issues. Ordinarily, the individualwill best perform his civic duties by affiliating himself with somepolitical party. But we are coming to believe that the necessity of party support inNational and state elections does not imply that party support isnecessary in local elections. In National politics each partygenerally has a definite policy with regard to taxation, the tariff, armaments, and other debatable issues. Support of the party for therealization of its program on these matters may be justifiable; on theother hand, loyalty to party in local politics may be an evil. Thereis no Democratic way of cleaning a street, and no Republican method offighting a fire. Thus the same citizen who may be under a moralobligation to support some party in National and state politics, maybe under a similar obligation to make his choice of local candidatesindependent of party. A desirable development, in this regard, is therecent tendency for some municipal elections to be decided regardlessof the party affiliations of the candidates. 432. INTEGRITY IS ABOVE PARTY. --Young people are commonly advised toaffiliate themselves with that political party which seems mostadequately to express their political ideals. But though this is amethod of conserving political energy, no citizen ought to support aparty which has ceased to represent him on matters which he considersof vital importance. When the party machine sets itself up as an endrather than a means, and when it emphasizes gain to a few rather thanbenefits to the party as a whole, then it is time for honest men toabandon their party. Integrity is above party. The slogan, "My partyright or wrong" is not only stupid but treasonable. Let the citizen beeager to coöperate with his fellows for the advancement of commonpolitical views, but let the corrupt party be abandoned. 433. RESPONSIBILITY OF THE INDIVIDUAL FOR PARTY ABUSES. --Nothingcould be more mistaken than the belief that defective government isdue primarily to the existence of an entity known as the politicalparty. The party is merely an association of individuals, and if it iscorrupt it is so because of the corruption of the individualscomprising it. It is time that political pessimists stopped blamingthe party for the defects of party government, and time they began tosee that the indifference and shortsightedness of the individual voteris at the bottom of the trouble. One of the greatest sources ofcorruption in American life is the knowledge of political bosses thatmany of their adherents will follow the party standard regardless ofits platform and no matter what the character of its candidates. Theparty boss is given an opening when individuals neglect to performtheir civic duties. The failure to vote, or to serve in office whenthe opportunity offers, the failure either to protest againstcandidates chosen unfairly, or to demand an accounting ofofficeholders, spell corruption and inefficiency in government. QUESTIONS ON THE TEXT 1. Define a political party. Why have parties arisen? 2. Trace briefly the development of parties in the United States. 3. Outline the organization of a political party. 4. Explain clearly the three great benefits of party organization. 5. What is the basic defect of party government? 6. What can be said as to contributions to the campaign fund ofpolitical parties? 7. Name some methods whereby the party boss may dominate nominationsand elections. Outline some laws designed to safeguard nominations andelections. 8. What is the spoils system and when did it arise? 9. What effect has the merit plan had upon the spoils system? 10. Are party abuses declining or increasing? 11. Distinguish between the duty of party support in National andperhaps State elections, and the duty of such support in localelections. 12. Under what circumstances should an individual abandon his party? 13. To what extent is the individual responsible for party abuses? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxxiv. Or all of the following: 2. Bryce, _Modern Democracies_, vol. I, chapter ii; vol. Ii, chapterxl. 3. Guitteau, _Government and Politics in the United States_, chapterxxxvi. 4. Munro, _The Government of the United States_, chapters xxii andxxiii. 5. Woodburn, _Political Parties and Party Problems_, chapter xv. QUESTIONS ON THE REQUIRED READINGS 1. What was Washington's opinion of the political party? (Munro, page313. ) 2. Who were the Federalists? (Guitteau, pages 455-456. ) 3. Discuss the principles of the Democratic-Republican party. (Guitteau, pages 456-457. ) 4. What was the origin of the National-Republican party? (Guitteau, pages 457-458. ) 5. What was the origin of the Democratic party? (Guitteau, page 457. ) 6. What part have third parties played in our history? (Guitteau, pages 459-460. ) 7. What three sets of men exist in every party? (Bryce, vol. I, pages126-127. ) 8. What are the three contributions of the United States to politicalscience? (Bryce, vol. Ii, page 27. ) 9. What are the two aims of party organization? (Bryce, vol. Ii, page32. ) 10. What is the relation of the party to national unity? (Bryce, vol. Ii, pages 43-44-) 11. In what way does the party stabilize popular government? (Bryce, vol. Ii, pages 44-45. ) 12. What is the relation of constancy and faithfulness to the safetyof the Republic? (Woodburn, page 338. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Which party occupies the dominant position in the political life ofyour community? Find out why it holds this position. 2. The history of third parties in your section, _i. E. _, parties otherthan the Democratic and Republican parties. 3. The organization of any political party having officialrepresentatives in your community. 4. The work of local political committees in your communityimmediately preceding election. 5. Corrupt practices acts in your state. 6. The Civil Service System in your state. 7. Make a study of the different political parties with a view todetermining which you would prefer to join. II 8. Origin and growth of parties in the United States. (Beard, _American Government and Politics_, pages 103-108; Guitteau, _Government and Politics in the United States_, chapter xxxvi; Bryce, _The American Commonwealth_, vol. Ii, chapters liii and liv; Ford, _The Rise and Growth of American Politics_, chapter vii. ) 9. Characteristics of the political party. (Ray, _Introduction toPolitical Parties and Practical Politics_, chapter i. ) 10. Distrust of parties in our early history. (Jones, _Readings onParties and Elections in the United States_, pages 28 36. ) 11. The spoils system. (Bryce, _The American Commonwealth_, vol. Ii, chapters lxv and lxvii; Ray, _Introduction to Political Parties andPractical Politics_, chapter xiv. ) 12. "Why the best men do not go into politics. " (Bryce, _The AmericanCommonwealth_, vol. Ii, chapter lviii. ) 13. Campaign contributions. (Brooks, _Corruption in American Politicsand Life_. ) 14. The party ring. (Bryce, _The American Commonwealth_, vol. Ii, chapters lxiii and lxiv. ) 15. The state boss. (Reinsch, _Readings on American State Government_, pages 432-434; Ray, _Introduction to Political Parties and PracticalPolitics_, chapter xvi. ) 16. How the party machine works. (Ford, _The Rise and Growth ofAmerican Politics_, pages 294-333; Kaye, _Readings in CivilGovernments_, pages 373-377; Jones, _Readings on Parties andElections in the United States_, pages 175-178; Lowell, _PublicOpinion and Popular Government, _ chapter vi. ) 17. Party government in England and in the United States. (Jones, _Readings on Parties and Elections in the United States_, pages I-II. ) 18. Necessity of strong parties in the United States. (Jones, _Readings on Parties and Elections in the United States_, pages 20-27. ) 19. The struggle for good government. (Hammond and Jenks, _GreatAmerican Issues_, chapter v. ) 20. The citizen and the party. (Bryce, _Hindrances to GoodCitizenship_, all; _Hughes, _Conditions of Progress in DemocraticGovernment_, lectures in and iv; Root, _Addressee on Government andCitizenship_, pages 1-77. ) FOR CLASSROOM DISCUSSION 21. Do third parties serve a useful purpose? 22. Should we pass laws limiting the total amount which any politicalcandidate may spend in the campaign for nomination and election? 23. What are the advantages and disadvantages of placing party emblemsat the head of ballots? 24. To what extent will civic education remedy the evils of the spoilssystem? 25. How will you determine which party you prefer to affiliate with, when you become of age? 26. How would you determine whether or not an individual ought toabandon his party? Suppose that an individual has severed connectionswith a party which he had reason to suppose was corrupt. Under whatcircumstances should he return to the ranks of that party? CHAPTER XXXV CHOOSING THE AGENTS OF GOVERNMENT 434. THE PROBLEM. --In an important sense, good government is a matterof getting the right men into office, hence one of the most vitalproblems in American democracy has to do with the choice of publicofficials. In any representative democracy nominations and electionsmust be a difficult and complex matter; in the United States theproblem is rendered doubly difficult by the great size of the country, and by the rapidity with which its population is increasing. In thiscountry hundreds of thousands of public officials are placed in officeannually, all of them either elected at the polls, or chosen by agentswho are themselves elected. The problem before us involves four questions: First, how can weperfect the mechanism by means of which the officers of government areselected? Second, how can we elect officials who represent a_majority_, rather than a _plurality_ [Footnote: See Section 444. ], ofthose actually voting? Third, how can voters be helped to makeintelligent choices at the polls? Fourth, how can we encouragequalified voters to make an habitual use of the ballot? 435. NOMINATION BY CAUCUS. --One of the earliest methods of choosingparty candidates in this country was by means of the caucus. Thecaucus was an informal meeting in which the local members of apolitical party nominated candidates for town and county offices. Candidates for state offices were named by a legislative caucus, inwhich legislators belonging to the same party came together anddetermined their respective nominations. The legislative caucus spreadto all of the states, and in 1800 was transferred to Congress as amode of nominating the President and Vice-President. After 1825 the caucus declined in importance. In the lawmakingbodies of both nation and states there continues to be a legislativecaucus, but its influence upon the choice of public officials hasgreatly diminished. Outside of the state and National legislatures thecaucus is now found only in towns, wards, and other small areas. Inthese areas it is used for the purpose of nominating candidates forlocal offices, and for the purpose of electing delegates to nominatingconventions. Except in some parts of New England, it should be noted, this local caucus is now generally known as the primary. 436. RISE OF THE NOMINATING CONVENTION. --After 1825 the caucus waslargely superseded by the convention. The convention is a relativelylarge meeting of party delegates chosen for the express purpose ofdeciding upon party policies and candidates. The convention device wasdeveloped, partly because party bosses had come to dominate thecaucus, and partly because the increasing population of the countrynecessitated larger congregations of party members. The convention wasmade possible by improved means of transportation, which allowedrelatively large groups of individuals to come together fordeliberative purposes. By 1850 all of the political parties hadadopted the convention plan for the nomination of candidates for mostlocal, state, and National offices. 437. DECLINE OF THE CONVENTION. --The convention was an improvementupon the caucus in that it allowed a greater number of party membersto participate in nominations. Unfortunately, delegates to theconvention continued to be chosen in local caucuses, where the party"ring" or machine usually determined the choice of delegates. Bossesprepared "slates, " bribed delegates, and otherwise manipulated whatwas supposed to be an expression of the party will in convention. Inmany cases the convention became-merely a cut-and-dried affair inwhich party members ratified nominations previously agreed upon byparty leaders. In the latter part of the nineteenth century, and especially after1900, these defects stimulated the development of measures designed toreduce or eliminate the abuses of the convention system. The mostimportant of these reform measures is the Direct Primary. 438. NATURE OF THE DIRECT PRIMARY. --The terms caucus, primary, anddirect primary are easily confused. We have seen that the local caucusis now generally known as the primary. The essential differencebetween this caucus or primary and the Direct Primary is this: in theDirect Primary, party members vote directly for the party's candidatesat the forthcoming election; in the caucus or primary, on the otherhand, party members do not vote directly for the more important ofthese candidates, but instead vote for delegates to a convention. Later these delegates meet in convention and there vote directly forparty candidates. Thus the Direct Primary is really an election withinthe party, held for the purpose of allowing party members to choosethe candidates who will represent the party at the approaching regularelection. When adopted, the Direct Primary abolishes the convention byallowing party members to cast their ballots directly for theirparty's candidates. Those individuals are nominated who receive aplurality of all votes cast. In most states the Direct Primary has recently been placed underdetailed legal control. Such laws generally prescribe the time andplace of holding the Direct Primary, the qualifications of those whomay participate, and the organization and general management of thisparty election. There is provision for polling places, officialballots, and election of officials, just as there is provision forsimilar machinery in the regular election which follows the DirectPrimary. 439. EXTENT OF THE DIRECT PRIMARY. --Heralded as a cure for the defectsof the convention, the Direct Primary spread rapidly after 1900. By1919 every state in the Union had adopted it in some form, and aboutforty states were applying the state-wide primary. At first the DirectPrimary was used only to nominate candidates for local offices, but atthe present time state officers, and even Federal Senators andRepresentatives, are often nominated by this method. In more than athird of the states the voters at the Direct Primary are allowed toexpress their preference directly for one of the candidates for thepresidential nomination. Altogether, the Direct Primary has largelysupplanted the convention in about three fourths of the states. 440. ADVANTAGES CLAIMED FOR THE DIRECT PRIMARY. --A number of importantadvantages are claimed for the Direct Primary. It is said that thedevice reduces the power of the party boss, and insures democraticcontrol within the party. Party members are more interested in theDirect Primary than in the local caucus or primary because in theDirect Primary they actually aid in the direct selection of partycandidates. The local caucus or primary, on the other hand, does notdirectly select the more important party candidates, but can onlychoose delegates to a nominating convention. Because the DirectPrimary increases the control of the individual over party policies, it encourages active political work on the part of the rank and file. It is maintained that the Direct Primary brings out a larger vote thanwould otherwise be possible. Better candidates are secured by means ofthe Direct Primary, it is claimed, because the nomination ofindividuals depends upon the presentation of their claims to thevoters, rather than upon winning the favor of party bosses. 441. OBJECTIONS URGED AGAINST THE DIRECT PRIMARY. --The opponents ofthe plan claim that the Direct Primary has serious faults. It is saidthat in supplanting the convention the Direct Primary has made moredifficult the exchange of views and opinions among party members. Itis declared that the Direct Primary has disorganized the party and hastherefore broken down party responsibility. It is claimed that theDirect Primary has not eliminated the boss, for rather than votingdirectly for candidates of their own choice, electors must make aselection from a list of candidates previously arranged by partyleaders. All of these candidates may be objectionable to the voter. Itis also pointed out that many worthy candidates have not the money todefray the expense of competing in the Direct Primaries. Frequentlythe "ring" brings out a number of candidates to divide the voters, while the henchmen of the ring concentrate their votes upon oneman. Lastly, it is pointed out, the excessive number of candidates tobe selected renders it impossible for the average individual to makean intelligent selection. In such a case, the average individualattends the Direct Primary only to confirm the choice of partyleaders. 442. OUTLOOK FOR THE DIRECT PRIMARY. --Although there is much to besaid for and against the Direct Primary, the belief is gaining groundthat this device does not offer the final solution of the difficultywhich led to its establishment. After an exhaustive study of thesubject, Professor Munro concludes as follows: "In a word, the primaryseems to afford protection against the worst fault of the convention, which was the frequent selection of incapable and corrupt candidatesat the behest of a few political leaders. But it has not, in twentyyears or more of experience, demonstrated that it can achieve positiveresults of a measurably satisfactory character. It has not rid thestate of boss domination; it has increased the expense which everycandidate must incur, and it gives a marked advantage to the man whosename is well known to the voters, whether he be a professionalpolitician or not. To say that the primary secures on the averagesomewhat better results than the old convention may be stating thetruth, but it is not high praise. " 443. NOMINATION BY PETITION. --The system of nomination by petitioncame into use between 1880 and 1890. It provides that candidates maybe placed in nomination by filing with some specified officernomination papers, or petitions, signed by a specified number ofqualified voters. The filing of these papers entitles the candidatesnamed thereon to have their names printed upon the official ballot. The merit of this device is that it prevents the party machine fromdictating the choice of candidates, and that it enables independentcandidates to be brought forward. On the other hand, it has encouragedthe circulation of petitions for hire. On the whole this method of nomination is proving more and morepopular in local elections. It seems well adapted to the needs ofmunicipalities, for it reduces partisanship to a minimum. It is saidthat in some cases it practically eliminates national politics fromlocal elections. The supporters of nomination by petition areincreasing, and it is now proposed to apply it to all local and statenominations. In such an event the Direct Primary would be radicallymodified, or even abolished. 444. MAJORITY REPRESENTATION. --How can we make certain that anindividual nominated or elected represents a majority of those voting?When there are only two candidates, the one receiving the largestnumber of votes receives both a plurality and a majority. But whenthere are several candidates, it often happens that the individualreceiving the largest number of votes does not receive a majority. Suppose, for example, that 100, 000 votes are cast, and that A receives20, 000, B 25, 000 C 30, 000 and D 25, 000. Ordinarily C will be declaredsuccessful because he has received a _plurality_ of the votes cast. But he has not received a _majority_ of the votes cast. This custom ofdeclaring successful the candidate receiving a plurality constitutes adefect in our representative system, since a plurality candidate mayrepresent only a small minority of those actually voting. Several attempts have been made to remedy this defect. In somesouthern states it is the practice to require an absolute majority forelection. If no aspirant receives a majority, a second ballot is takenon the two candidates standing highest on the list. In a number ofnorthern cities, the evil of plurality voting has been attackedthrough the _preferential voting_ device. This system of voting allowsthe voter to designate not only his first, but his second and thirdchoices as well. If any candidate receives a clear majority of firstchoice votes, he is declared elected. But if no one receives such amajority, the second choices are added to the first choices. If thisfurther calculation does not give any candidate a majority, thirdchoices are resorted to. In cities where the plan has been tried, preferential voting is said to have proved markedly successful. 445. MINORITY REPRESENTATION. --Related to the question of making surethat successful candidates represent a majority of those voting is theproblem of the adequate representation of the minority. The mostnotorious phase of this problem has grown out of our custom ofelecting one national Representative from each of the congressionaldistricts into which every state is divided. Often gerrymandering[Footnote: The origin and nature of "gerrymandering" are discussed inChapter XLII, Sections 542 and 543. ] is resorted to, that is to say, congressional districts are so arranged as to give the minority partyoverwhelming majorities in a few districts, while the dominant partyis allowed to carry the remaining districts by very small majorities. The result is gross misrepresentation in Congress, because the partyhaving a bare majority often secures a large percentage of therepresentatives, while the minority is very inadequately represented. Such misrepresentation also appears in connection with the choice ofrepresentatives to the state legislatures. In the attempt to remedy this type of misrepresentation various plansof _proportional representation_ have been put forth. In Illinoismembers of the lower house of the state legislature have long beenchosen as follows: Each state senatorial district is given the rightto elect three assemblymen. Every elector in the district has theright to cast three votes, one each for three different persons, ortwo votes for one candidate and one for another, or all for onecandidate. By concentrating its votes upon one candidate, an averageminority can be sure of at least one representative in each district. A plan employed in several other states likewise aims to give eachpolitical party representation proportional to the number of votescast by the party, regardless of whether the number is a minority or amajority. The principle of proportional representation, if fullyworked out, and if made simple enough to be comprehended by theaverage voter, would insure majority rule and at the same time allowthe adequate representation of minorities. 446. OBSTACLES TO INTELLIGENTY VOTING. --Several obstacles tointelligent voting in this country are intimately connected with thelong ballot. [Footnote: The term "long ballot" refers to the fact thatso many officials are elective that the ballot on which their namesappear is often of great length. The term "short ballot" refers to areduction of the length of this ballot by making fewer officerselective. ] The wave of democracy which swept the country in the lastcentury had the double effect of increasing the number of electiveoffices, and of shortening the terms during which officials wereallowed to hold office. A greatly lengthened ballot, together with thegreat frequency of elections, has made it impossible for the averagevoter to exercise proper judgment at the polls. The difficulty ofinvestigating the merits of the numerous candidates, or even ofbecoming familiar with their names, has discouraged many from voting. Of those who still pretend to reach independent decisions regardingcandidates and issues, a considerable number really rely upon thedirection and advice of professional politicians. The long ballot isthe enemy of democracy, since it allows politicians, rather than themasses, to control actual government. 447. SHORTENING THE BALLOT. --The chief remedy for these evils is theshort ballot. The essential features of the short ballot plan are asfollows: Popular elections should be resorted to only for the purposeof choosing those officials who have to do with public policies. Forexample, state voters ought to select only the governor, lieutenantgovernor, and members of the legislature; city voters ought to chooseonly the mayor and council; [Footnote: Where this form of municipalgovernment is still employed. ] while county voters ought to confinetheir attention to a small group of county commissioners orsupervisors. All other officials ought to be appointed, eitherdirectly by chief executive officers, or by means of the merit plan. Along with the shortening of the ballot, we should be increasinglywilling to allow officials to hold office for longer terms. Asupplementary feature of great value would be the establishment ofsuch means of popular control as would protect the public againstabuse of power by officials to whom these longer terms had beenextended. 448. MERITS OF THE SHORT BALLOT. --There can be little doubt that adrastic shortening of the ballot would work a great improvement in ourelectoral system. If the vast majority of officials were madeappointive, the voter could give more time and thought to theconsideration of a few important elective officials. A short ballotwould lessen the possibilities of manipulation by rings and bosses. Unquestionably the interest of the voter would be quickened, since hisinfluence upon the political life of his community would be moreapparent. And not only would the short ballot make government morerepresentative, but it would help to make it more responsible. If the majority of the administrative officials who are now electedwere made appointive, responsibility for their conduct in office couldbe concentrated upon the chief executive officer appointing them. 449. THE NEGLECT TO VOTE. --The last of the vital questions arising inconnection with the choice of public officials is the matter ofencouraging the enfranchised classes to use the ballot. The longballot and the domination of party politics by rings and bossesdiscourage many from voting, nevertheless it is probably true that theslackness of the individual is the chief reason why voters neglect touse the ballot. This slackness may take the form of personalindolence, or of indifference to civic duty, or of preoccupation withthe press of personal business. When individuals are busy with theirprivate affairs the time needed for intelligent political action isoften begrudged. Again, the duty to vote is not always a compellingone. When a duty is shared with innumerable other people, it appearsless of a personal duty; when the individual notes that his fellow-citizens neglect that duty, his own tendency toward slackness isencouraged. In a democracy, as Lord Bryce points out, "everybody'sbusiness becomes nobody's business. " 450. IMPORTANCE OF CIVIC EDUCATION. --The perfecting of our nominatingand elective machinery, together with the shortening of the ballot, isdoing a good deal to awaken interest in the proper use of the vote. But the problems of democracy cannot be solved by purely mechanicalmeans. If our voters are to regard the use of the ballot as a civicduty, we must rely largely upon civic education. Young people, soon tobe voters, must be impressed with the responsibilities of democracy. They must be taught the vital importance of using the vote. In Belgiumand Spain it is customary to penalize individuals for neglecting tovote, but the idea of compulsory voting is repugnant to the Americanspirit. Moreover, law alone can neither build up nor sustainindividual morality. The remedy for indifference to the ballot wouldseem to be not law, but the education of voters to their moralobligation toward the government under which they live. QUESTIONS ON THE TEXT 1. What four questions arise in connection with the choice of publicofficials? 2. Describe nomination by caucus. To what extent is this method stillused? 3. Why did the nominating convention arise? 4. What forces were responsible for the decline of the convention? 5. What is the nature and purpose of the Direct Primary? 6. To what extent is the Direct Primary used in this country? 7. What are the chief advantages of this device? 8. What defects are urged against the Direct Primary? 9. What does Professor Munro conclude as to the value of the DirectPrimary? 10. What is nomination by petition? 11. What is the problem of majority representation? 12. Discuss the nature and purpose of the preferential voting device. 13. What is the purpose of gerrymandering? 14. What is the nature and purpose of proportional representation? 15. What is the relation of civic education to the proper use of theballot? REQUIRED READINGS 1. Williamson, _Readings in American Democracy, _ chapter xxxv. Or all of the following: 2. Bryce, _The American Commonwealth_ vol. Ii, chapter lxvi. 3. Guitteau, _Government and Politics in the United States, _ chapterxxxvii. 4. Ray, _Introduction to Political Parties and Practical Politics, _chapter iv. 5. Reed, _Form and Functions of American Government, _ chapter vii. QUESTIONS ON THE REQUIRED READINGS 1. Is the number of elective officers in the United States greater orless than in Europe? (Bryce, page 146. ) 2. How is the caucus used at the present time? (Ray, page 75. ) 3. What is a "self-announced" candidate? (Ray, page 75. ) 4. Describe the workings of the "nomination by petition" device. (Ray, page 76. ) 5. What evils attend the unregulated caucus or primary? (Ray, pages80-83. ) 6. Describe the work of the state nominating convention. (Guitteau, pages 467-468. ) 7. Outline the procedure in the national convention. (Guitteau, pages471-472. ) 8. What are the two chief types of Australian ballot? (Reed, pages 82-84. ) 9. What is the chief weakness of the Direct Primary? (Reed, page 87. ) 10. Name some states in which the presidential preference primary isused. (Reed, page 87. ) 11. How is a typical presidential preference primary conducted? (Reed, page 87. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Use of the caucus or primary in your community. 2. The nominating convention in your state. 3. The Direct Primary in your state or community. 4. Legal control of the Direct Primary in your state. 5. The extent to which nomination by petition is employed in yourstate. 6. The representation of minorities in your state legislature. 7. Recent ballot reform in your state. II 8. The framework of the convention. (Ford, _Rise and Growth ofAmerican Politics_, chapter xvi; Ray, _Introduction to PoliticalParties and Practical Politics_, chapter v; Woodburn, _PoliticalParties and Party Problems in the United States_, chapters xi-xiii. ) 9. The nominating convention at work. (Bryce, _The AmericanCommonwealth_, vol. Ii, chapter lxx; Ray, _Introduction to PoliticalParties and Practical Politics_, chapter viii. ) 10. Structure of the Direct Primary. (Ray, _Introduction to PoliticalParties and Practical Politics_, chapter vi. ) 11. How the Direct Primary works. (Cleveland, _OrganisedDemocracy, _ chapter xvii; Woodburn, _Political Parties and PartyProblems in the United States, _ chapter xxi. ) 12. Effect of the Direct Primary upon party organization. (Holcombe, _State Government in the United States, _ pages 193-204. ) 13. Direct nominations. (Reinsch, _Readings on American StateGovernments, _ pages 383-394) 14. Tyranny of the majority. (Bryce, _The American Commonwealth, _ vol. Ii, chapter lxxxiv. ) 15. Safeguarding the rights of the minority. (Gettell, _Readings inPolitical Science, _ pages 322-325. ) 16. The nature of proportional representation. (Jones, _Readings onParties and Elections in the United States, _ pages 164-168; Commons, _Proportional Representation. _) 17. Objections to the principle of proportional representation. (Gettell, _Readings in Political Science, _ pages 324-325. ) 18. Preferential voting. (_Massachusetts Constitutional ConventionBulletins, _ 1917. ) 19. The gerrymander. (Woodburn, _Political Parties and Party Problemsin the United States, _ chapter xx. ) 20. The short ballot. (Childs, _Short Ballot Principles;_Massachusetts Constitutional Convention Bulletins, 1917. ) 21. What proportion of qualified voters actually use the ballot?(Hart, _Practical Essays on American Government, _ No. 2. ) FOR CLASSROOM DISCUSSION 22. The desirability of extending the Direct Primary in your state. 23. The closed versus the open primary. 24. Advantages and disadvantages of nomination by petition. 25. Advantages and disadvantages of holding local, state and Nationalelections at different times. CHAPTER XXXVI HONESTY AND EFFICIENCY IN OFFICE 451. MAGNITUDE OF THE PROBLEM. --How can we insure the honest andefficient administration of American government? Civic education andthe perfection of nomination and election devices will do much towardsecuring this end, but there remains a troublesome question. This hasto do with reorganizing our legislative and administrative machinery, so that public officials may be allowed or encouraged to perform theirduties in a responsible and effective manner. The problem is a vast one, the adequate treatment of which wouldrequire volumes. In this chapter, therefore, it will be necessary toconfine the discussion to a few of the more pressing aspects of theproblem. Of these the following are perhaps the more important: First, the defects in legislative procedure; second, the reorganization ofstate administration; third, budget reform; and fourth, the reform ofmunicipal government. A. DEFECTS IN LEGISLATIVE PROCEDURE 452. AMERICAN LEGISLATURES ARE OVERWORKED. --It has frequently beenpointed out that in the United States both state and Nationallegislatures are overwhelmed with work. One reason for this is thatthe extension of government control over industrial corporations hasrendered legislation more complex and greater in volume. Thedevelopment of public interest in health, education, and relatedfields has 'of recent years markedly increased the amount oflegislation. The custom which many legislators have of attempting toget as much special legislation for their respective districts aspossible has likewise increased the number of laws upon the statutebooks. Lastly, it should be borne in mind that throughout our historywe have tended to believe legislation a cure-all for the defects ofAmerican life. This attitude has led to an excessive number of laws onsubjects which in European countries are ordinarily left to thediscretion of administrative officials. The combined effect of these developments has been to confront ourlegislatures with so much business that honest and efficientlegislation has been rendered exceedingly difficult. 453 THE COMMITTEE SYSTEM. --The chief defects of American legislationappear in connection with the committee system which exists in bothNational and state legislatures. The committee system is the practiceof dividing the legislative body into a large number of small groupsor committees whose duty it is to consider various types oflegislative business. The great merit of this device is that itexpedites business. Indeed, the membership of our legislatures hasbecome so large, and the amount of legislative business has increasedso rapidly, that it is difficult to see how the committee system couldbe dispensed with. Without some such division of labor, chaos andendless delay would result. [Footnote: For the part played by thecommittee system in the actual making of a law, see Chapter XLIIL] At the same time, the committee system has numerous faults. As LordBryce has pointed out, it destroys the unity of the legislature bybreaking it up into a number of small groups among which there is noappreciable degree of coördination. The committee system limitsdebate. Since most committee business is transacted in secret session, the public is deprived of light upon public affairs. So minutely doesthe committee system divide legislative labor that even the mostimportant piece of legislation cannot secure the attention of the bestmen. There is a diffusion of responsibility when various committeeswork upon related problems without regard for the work being done byone another. Finally, the committee system throws power, unaccompaniedby adequate responsibility, into the hands of the committee chairman. 454 LOG-ROLLING. Log-rolling is the trading of votes among individuallegislators. Many of the faults of our state and National legislaturesare connected with this practice. Some legislators are so intent uponsecuring the passage of bills in which they are personally interestedthat they are willing to vote for a fellow-legislator's pet bills, regardless of merit, provided that legislator will return the favor. In this way special legislation often displaces bills which are drawnin a wider interest, --taxation, education, and other vital mattersbeing neglected so that members may pursue personal ends. There is as yet no limit to the number of bills which may beintroduced by state or National legislators. As a result there is alarge number of unnecessary and hastily framed bills for which no oneis definitely responsible. It is supposed to be the duty of alllegislators to weed out bills which are poorly framed, or which aredesigned to promote special interests. But in this case everybody'sbusiness becomes nobody's business. Such machine-like formalities asrepeated readings of a bill, and a series of committee reports uponit, are generally substituted for individual scrutiny of a measure. 455. LEGISLATIVE REFORM. --The reform of legislative procedure isattracting an increasing amount of attention among students ofAmerican politics. Many recent state constitutions define in detailthe powers and procedure of the state legislature. A considerablenumber of states now have legislative reference bureaus, which enablelegislators to keep track of legislation in other states, as well asto have ready access to important data bearing upon their ownproblems. There is a growing tendency for state legislatures to employexpert bill drafters to draw up laws on technical and highly-complexsubjects. The expert bill drafter and the legislative bureau helpmaterially to reduce the amount of defective and unwise legislation onthe statute books. Much remains to be done, however. Important public bills oughtinvariably to be given first consideration by legislators, instead of, as is still many times the case, being put off until the end of thesession in order to allow time for log-rolling. Filibustering andother time-wasting tactics should be curbed, because they tend toobstruct legislation. Many students of government advocate theextension of a plan already adopted in Massachusetts and a few otherstates, whereby all bills are given a public hearing. It is also clearthat some method ought to be devised whereby the work of the variouscommittees dealing with related subjects could be correlated andharmonized. Lastly, any measures which will reduce the amount ofunnecessary and ill-advised legislation must prove of great value. B. THE REORGANIZATION OF STATE ADMINISTRATION 456. DEFECTS IN STATE ADMINISTRATION. --Originally the stateadministration consisted of the Governor and a few elective officers, notably a Secretary of State, a Treasurer, and an Attorney-General. With the rapid development of the country, education, health, dependency, corporations, and similar matters have required more andmore attention from state governments. To perform a host of newfunctions the state administration has expanded to include numerouscommissioners, boards, and departments, some of them elected by thepeople, and some of them appointed by the Governor. This development has been haphazard, rather than orderly and planned. As a result, the administrative department is in most states aconfused and tangled mass of boards and commissions, departments andsingle offices, often duplicating the work of one another, and largelyworking without any appreciable degree of coördination. In most statesnumerous administrative officers are elective, rather than appointive. This situation has two drawbacks: In the first place electiveofficials are responsible to no one but the people at large, andtherefore these officials cannot be _efficiently directed orsupervised_ by the Governor. In the second place, no definite personor persons can be held _responsible_ for the conduct of this numerousbody of elective administrative officials. 457. THE REFORM OF STATE ADMINISTRATION. --The reorganization andconsolidation of state administrative offices is attracting anincreasing amount of attention. In New Jersey, Massachusetts, Illinois, and several other states, administration has been notablysimplified and systematized. The Illinois Administrative Code of 1917, for example, consolidated the work of more than a hundredadministrative offices into nine main departments. Each department isin charge of a director, appointed by the Governor, and eachdepartment is responsible to the Governor. Coördination of this typeeconomizes time and energy, and saves the state's money by reducingthe number of salaried officials. The centralization of the entireadministration under the Governor not only allows efficientsupervision, but permits the people to hold this official strictlyaccountable for the administration. The need of reform in state administration is recognized throughoutthe Union, but in most states the reorganization of administrativeoffices is retarded in two ways: First, the movement is opposed byofficeholders who fear that their positions will be abolished by aconsolidation of departments; second, in many states the consolidationof administrative offices is impossible without substantial amendmentsto the state constitution. C. BUDGET REFORM 458. THE QUESTION OF A BUDGET. --In contrast to the leading countriesof Europe, our National government until very recently had no budgetsystem. Some of the estimates were prepared by the administrativedepartments, under the direction of the President, while otherestimates were prepared by various committees in the House ofRepresentatives. In Congress there was little or no coördinationbetween the various committees considering different appropriations. Nor were these committees properly coördinated with the administrativedepartments which were responsible for the original estimates. After appropriations had been granted, Congress had no scrutiny overthe actual expenditure of the money. Thus the administrativedepartments might waste their appropriations, and then secure thepassage of deficiency bills to make up the shortage. At no time didthe various departments and committees considering appropriations takeinto careful account the amount of government revenue. For this reasonit was purely an accident if appropriations kept within the limits setby available revenue. A similar situation formerly prevailed in many of the states. Thevarious administrative departments transmitted to the legislature anestimate of what each required for the coming year. These estimates, together with an unlimited number of appropriation bills introduced byindividual members, were referred to various committees. Whetherparticular appropriations were granted depended, not upon the amountof state revenue, but upon the political pressure brought to bear infavor of those measures. As in Congress, neither the executive norlegislative branch of government, neither particular committees norindividual legislators, could be held wholly responsible for anyappropriation measure. Excessive waste of public funds was the result. 459. BUDGET REFORM. --The last two decades have witnessed a growingdemand for a national budget. Under the direction of President Taft acommission investigated the general question of responsibility in thehandling of Federal finances. The report of the committee favored anational budget, but the unfriendly attitude of Congress checked themovement. Interest in a national budget increased during the two termsof President Wilson, stimulated, especially, by the wave of postwareconomy which swept the country after the signing of the armistice inNovember, 1918. In the spring of 1921, a bill establishing a budgetsystem for the National government passed both houses of Congress, andon June 10, 1921, the bill became law by the signature of PresidentHarding. This system is expected markedly to improve Federal finances. Practically unknown a few years ago, the budget movement among thestates has spread so rapidly that at the present time almost all ofthe commonwealths have some sort of budget system. Three methods ofpreparing the budget are found among the several states. In somestates, as in New York, budget-making is in the hands of thelegislature; in other states, as in Wisconsin, both legislature andexecutive participate in budget-making; in still other states, asin Illinois, the executive alone is responsible for the preparation ofthe budget. Many authorities claim that the last-named type of budgetpreparation is preferable but, in many states it is objected to asgiving too much power to the executive. D. THE REFORM OF MUNICIPAL GOVERNMENT 460. MUNICIPAL REFORM: CHANGES IN THE MAYOR-COUNCIL PLAN. --Until theopening of the twentieth century practically every American city wasgoverned under what is known as the mayor-council plan. This planprovides for a council to make the laws, and a mayor to act asexecutive. Formerly the council of the larger cities was very oftencomposed of two chambers, a board of aldermen and a common council, but of late years the single-chambered council has become more andmore common. The mayor-council plan still prevails in most American cities, particularly in the larger municipalities. But everywhere the growingdemand for honesty and efficiency in government is leading to thereform of this system. In order to reduce the length of the ballot, the appointive power of the mayor is being increased. In the interestsof economy and responsibility the administrative offices are in manycities being consolidated, coördinated and centralized under themayor. To guard against the abuse of financial power there is in manycommonwealths a tendency for state constitutions and statutes to limitthe debt-incurring and franchise-granting powers of city councils. 461. MUNICIPAL REFORM: THE COMMISSION PLAN. --In September, 1900, atidal wave seriously demoralized the mayor-council form of governmentin Galveston, Texas. To meet the emergency, the state legislatureauthorized the establishment of a new type of government, known as thecommission plan. Instead of selecting a mayor and councilmen, thevoters of Galveston now choose a commission of five officials. All ofthese commissioners are equal in power, except that one presides asmayor-president. The commission form of government spread rapidly, chiefly among the smaller cities, until in 1921 there were more than300 municipalities governed under this plan. In every case thecommission has both legislative and executive powers. Collectively thecommissioners act as a legislative body for the city, individuallythey head the various administrative departments. A number of important advantages are claimed for the commission formof city government. Responsibility is no longer divided among mayorand councilmen, but can be definitely placed upon the small group ofcommissioners. It is believed by many that commission governmentallows a greater harmony of action than is possible under the mayor-council plan. Finally, it is declared, a group of five or sevencommissioners can administer city government with more efficiency thancan a mayor and a numerous council. The opponents of commission government maintain, on the other hand, that the plan is undemocratic and oligarchical because it centralizesgreat power in the hands of a small group. The plan is said toincrease the danger of corruption, since appropriating and spendingpowers are placed in the same hands. The opponents of this form ofgovernment also maintain that it renders easier the corruption of thecity administration, since party bosses may easily gain control of afew commissioners. A final, and perhaps the most serious, objection isthat commission government does not go to the logical conclusion inconcentrating responsibility. There is no head to the administration, and no way of preventing the diffusion of responsibility among thecommissioners. Jealousy among the commissioners has often led tofriction and to working at cross-purposes. [Footnote: Of recent yearsa number of cities have abandoned commission government for either themayor-council or the city manager plan. ] 462. MUNICIPAL REFORM: THE CITY MANAGER PLAN. --A recent modificationof commission government is the city manager plan. This provides for asmall elective commission, which does not itself administer thegovernment of the city, but which chooses, instead, an experiencedexecutive or city manager. The city manager is supposed to be a non-partisan expert whose duty it is to administer the city in accordancewith business principles. As the agent of the commission choosing him, the city manager enforces all ordinances, prepares annual estimates, and appoints all other city officials and employees. He also acceptsfull responsibility for the administration of the city's affairs. The first city to apply the city manager plan was Dayton, Ohio, whichbegan the experiment on January 1, 1914. Since that date the plan, orsome variation of it, has been established in about a hundred cities. The city manager plan is an improvement over the commission plan, inthat it allows a greater concentration of responsibility. Anotheradvantage over commission government is that the city manager planinsures a high grade of professional skill at the apex of the city'sadministration. The plan appears to work well in the smaller cities, provided a high grade manager can be found, and provided, also, thathis position can be safeguarded against corrupting politicalinfluences. QUESTIONS ON THE TEXT 1. What four questions are discussed in this chapter? 2. Why are American legislatures overwhelmed with work? 3. What are the merits and defects of the committee system? 4. What is log-rolling, and why is it objectionable? 5. What is the purpose of the legislative bureau? 6. What is the function of the expert bill drafter? 7. What are the chief defects of state administration? 8. What has been done to correct these defects? 9. Discuss the movement toward a national budget. 10. What are the three forms of budget making in state government? 11. What is the mayor-council plan, and what changes are being broughtabout in it? 12. What is the commission plan of city government? How did it arise?What can be said for and against it? 13. Compare the commission plan with the city manager plan. 14. What is the chief merit of the city manager plan? Required Readings 1. Williamson, _Readings in American Democracy_, chapter xxxvi. Or all of the following: 2. Bryce, _The American Commonwealth_, vol. I, chapter xlv. 3. Munro, _The Government of the United States_, chapter xxxi. 4. Reed, _Form and Functions of American Government_, chapter xli. 5. Illinois Efficiency and Economy Committee, Report, 1915, pages 18-24 and 74-77. QUESTIONS ON THE REQUIRED READINGS 1. What are the chief defects of state government in general? (Bryce, page 556. ) 2. What is a book of estimates? (Reed, page 483. ) 3. Describe the procedure in Congress with regard to appropriationbills. (Reed, page 484. ) 4. How are provisions against special legislation evaded in somestates? (Bryce, page 559. ) 5. Enumerate and briefly characterize the chief administrative officesin the various states. (Munro, pages 447-457. ) 6. What are the two distinctive features of state administration?(Munro, pages 457-458. ) 7. What are the chief defects of state administration? (IllinoisReport, pages 18-24. ) 8. Summarize the advantages of a reorganized and consolidated stateadministration. (Illinois Report, pages 74-77. ) 9. What is the purpose of a "state auditing" system? (Reed, page 489. ) 10. Explain the need for uniform accounts for cities and counties?(Reed, pages 491-492. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Interview any citizen of your community who has served in the statelegislature. Ask for his personal opinion concerning the amount oflegislative business to be transacted, the workings of the committeesystem, and the practice of log-rolling. 2. Status of the expert bill-drafter and the legislative referencebureau in your state. If these devices have not been adopted, interview or write to a member of the state legislature concerning hisopinion of these legislative aids. 3. The enactment of appropriation bills in your state legislature. 4. The development of the administrative department in your state. 5. Make a diagram showing the relations of the various boards andcommissions embraced in the administrative department of your state. Point out instances of duplication and lack of coördination. Draw up aplan for consolidating these boards and commissions. 6. The budget in your state. 7. Form of government in your municipality. II 8. The business of Congress. (McCall, _The Business of Congress_. ) 9. The faults of state legislatures. (Kaye, _Readings in CivilGovernment_, pages 282-295. ) 10. The legislative reference bureau. (Reinsch, _Readings on AmericanState Government_, pages 63-74. ) 11. History of state administration. (Illinois ConstitutionalConvention Bulletins, 1920, pages 623-709. ) 12. The reorganization of state government. (Munro, _The Government ofthe United States_, chapter xxxvi. ) 13. A National budget. (Cleveland and Buck, _The Budget andResponsible Government_, chapters xviii-xx. ) 14. State budgets. (Cleveland and Buck, _The Budget and ResponsibleGovernment_, part iii; Munro, _The Government of the United States_, pages 466-469. ) 15. Revenues and expenditures of cities. (Beard, _American CityGovernment_, chapter v. ) 16. Home rule for cities. (Beard, _American City Government_, chapterii. ) 17. The mayor-council plan. (Munro, _The Government of AmericanCities_, chapters viii and ix. ) 18. The commission plan of city government. (Munro, _The Government ofAmerican Cities_, chapter xii; Massachusetts Constitutional ConventionBulletins. ) 19. The city manager plan. (Munro, _The Government of AmericanCities_, chapter xv; Massachusetts Constitutional ConventionBulletins. ) 20. The civil service as a career. (Foltz, _The Federal Civil Serviceas a Career_. ) FOR CLASSROOM DISCUSSION 21. Would shortening the length of the legislative session improve thequality of legislation? (See Bryce, _The American Common-wealth_, vol. I, chapter xlv. ) 22. Should there be a limit to the number of bills which a legislatormay introduce? 23. Methods of coördinating committees in your state legislature. 24. Advantages and disadvantages of the commission form of government. (See the Debaters' Handbook Series. ) 25. Advantages and disadvantages of the city manager plan. (See theDebaters' Handbook Series. ) CHAPTER XXXVII THE EXTENSION OF POPULAR CONTROL 463. BASIS OF POPULAR CONTROL. --The fact that our government is arepresentative democracy entitles the voters to choose, direct, andcontrol the public officials who act for the people at large. We havediscussed a few of the methods whereby the nomination and electionmachinery might be improved; we must now go a step further and examinethe means by which officeholders may be controlled. Supposedly, officials are chosen because the people believe them ableand willing to discharge public duties with honesty and efficiency. But after officials have taken office it may develop that they havesecured their positions by unfair means, or that they are dishonest, or that they are inefficient or otherwise unsatisfactory. Wherever itdevelops that officeholders no longer meet with the approval of thepeople, truly representative government is impossible unless somemethod of effective popular control is found. A. INDIRECT METHODS OF CONTROL 464. REFUSAL TO REËLECT. --If the voters are dissatisfied with theconduct of their representatives, they may express their disapprovalby refusing to reëlect those representatives. This effects a measureof control, even though it is negative and not immediate. 465. REMOVAL BY THE APPOINTIVE AUTHORITY. --If satisfaction is notrendered by subordinate administrative officials who have securedoffice through appointment, such officials may be removed from officeby the authority appointing them. The power of the President, Governor, or mayor to appoint generally carries with it the powerto remove from office. Such removal may be on the initiative of theappointing authority, or it may be in response to a popular demand. From the standpoint of the voters at large, however, this method ofremoval is indirect and often ineffective. 466. IMPEACHMENT. --Unsatisfactory officials are sometimes removed bythe impeachment process. In the various states either a part or thewhole of the legislature may sit as a court of impeachment for thetrial of certain important officials accused of serious crime. In theNational government the House of Representatives may initiateimpeachment proceedings against the President, Vice-President, and allother civil officers of the United States. In such cases the Senateacts as a court of trial. Yet as a method of popular control impeachment is unsatisfactory. Itis indirect, since a part or the whole of the legislature acts for thepeople. It is slow and cumbersome. It does not extend over the entirelist of public officials, nor over the entire range of offenses. 467. CONTROL THROUGH THE AMENDING PROCESS. --The powers and duties ofpublic officials may be partially controlled through the formalamending process. In all states except New Hampshire the constitutionmay be amended through legislative action, subsequently ratified bypopular vote. About two thirds of the states also provide foramendment by a constitutional convention composed of delegates electedby the voters. In a number of states, as we shall see a little later, constitutional amendment may also be secured by means of theInitiative and Referendum. The Federal Constitution may be formally amended in four differentways. The two most important methods are, first, by a two-thirds votein each house of Congress, and second, by a convention called byCongress upon application of the legislatures of two thirds of thestates. In either case the amendment must be ratified by thelegislatures of three fourths of the states. The formal amending process is an important part of our governmentalmachinery, but as a method of popular control it is open to a numberof criticisms. It is slow. It is indirect, for the people must relychiefly upon their legislatures. Constitutional amendment cannotremedy all of the abuses of office. Furthermore, it is too drastic andfar-reaching a remedy for many of the minor abuses of office. B. DIRECT METHODS or CONTROL 468. THE INITIATIVE. --In more than a third of the states populardiscontent with the state legislature, together with the growing self-confidence of the voters, has led to the adoption of the Initiative. The Initiative is a device whereby any person or group of persons maydraft a statute, and, on securing the signatures of a certainpercentage of the voters, compel the state officials to submit themeasure to popular vote. If at this voting the measure secures therequired popular approval, it becomes law. When the measure is submitted to the voters directly after thefulfilment of the petition requirements, the device is known as theDirect Initiative. When, after passing the petition stage, the measuregoes to the legislature and does not come before the people at thepolls unless the legislature fails to accept it, the device is knownas the Indirect Initiative. In a dozen states, chiefly in the West, the Initiative is also used to propose amendments to the stateconstitution. 469. THE REFERENDUM. --Early in our national history, it became anestablished principle that proposed constitutions or constitutionalamendments should be referred to the voters for ratification. Ofrecent years about a third of the states, chiefly in the West, haveextended the referendum device to cover ordinary legislation. Thistype of referendum may be defined as a plan whereby a small percentageof the voters may demand that practically any statute passed by thelegislature must be submitted to the voters and approved by aspecified majority before going into effect. [Footnote: A few types oflaws are not subject to the Referendum. ] The Referendum is variously applied. In the Compulsory Referendum, which is the most common form, a measure must be submitted to thepeople whenever a designated number of voters petition that this stepbe taken. The Optional Referendum allows the state legislature todecide whether or not an enacted measure should be submitted to thepeople. The Statutory Referendum applies only to proposed statutes, while the Constitutional Referendum is limited to proposed amendmentsto the state constitution. 470. DIRECT LEGISLATION. --The Initiative and the Referendum are foundtogether in more than a dozen states. The two devices aresupplementary: the Initiative is a positive instrument which may beused to set the wheels of direct legislation in motion; the Referendumis a negative measure which gives the people a potential veto on lawspassed by the legislature. The Initiative and the Referendum are knowncollectively as Direct Legislation, that is, legislation directly bythe people, as opposed to legislation enacted entirely through thelegislature. 471. ADVANTAGES CLAIMED FOR DIRECT LEGISLATION. --Important advantagesare claimed for Direct Legislation. It is declared that the Initiativeand Referendum keep lawmaking from being dominated by specialinterests. Because it constitutes a check upon constitutionalconventions and state legislatures, Direct Legislation is said to makegovernment more truly responsive to public opinion. It is claimed thatDirect Legislation does not supplant, but rather supplements, improves, and renders more democratic, the formal legislativemachinery. In several states, and especially in Oregon, it is claimedthat the device stimulates political interest on the part of thevoters. In Oregon the authorities print a pamphlet containing astatement of proposed laws, and summarizing the arguments of bothadvocates and opponents of each measure. Some weeks before the measureis to be decided at the polls this pamphlet is sent at public expenseto every registered voter in the state. 472. OBJECTIVES URGED AGAINST DIRECT LEGISLATION. --Critics of theInitiative and the Referendum maintain that Direct Legislation hasmany serious defects. It is declared that by breaking down andweakening the state legislature, this type of legislation threatensthe integrity of the framework of government established by the stateconstitution. It is pointed out that Direct Legislation shiftslawmaking from a definite group (the state legislature), to a largeand indefinite group of persons (the voters as a class), upon whomresponsibility cannot be fixed. By robbing the legislature of powerand responsibility, the Initiative and Referendum are said to degraderather than to improve that body: the best class of men is notattracted to a legislature which has been shorn of dignity andinfluence, and if the people rely upon the Initiative and Referendum, the voters deem it less necessary to choose honest, capablelegislators. It is also maintained that the Initiative and Referendum do notpromote independence of political thought, since only a mechanical"Yes" or "No" is demanded of the voters. In all states where DirectLegislation is applied, it is said, so few persons actually vote thatlegislation is really determined by a small minority of the voters. Again, the ease with which the Initiative and Referendum may be set inmotion allows so many measures to be brought before the people thatthey cannot vote upon them intelligently. It is also said that DirectLegislation is primarily the instrument of the propagandist, becausein many cases cranks and professional agitators monopolize theprivilege of circulating petitions. A serious defect of Direct Legislation is that the drafting of manylaws requires detailed and technical information which the averagevoter is in no position to secure. In several states, notably inMaine, the recognition of this difficulty has led to the adoption of amodified Initiative. According to this plan, the state legislature mayexamine any measure proposed by the voters, enact an alternativemeasure of its own, and submit both to popular approval. The votersdecide between the two. The difficulty with this plan is that it isnot only expensive, but that by doubling the number of measures to beweighed and studied it imposes an added burden upon the voter at thepolls. 473. THE RECALL. --The Recall is a device whereby certain electiveofficials who have not given satisfaction in office may be required tostand for reëelection before the end of their terms. The Recall is setin motion when a petition has been duly signed by a specifiedpercentage of the voters, usually at least twenty-five per cent. TheRecall cannot be employed until the official in question has been inoffice a specified period, so that he shall have had an opportunity togive satisfaction before being subject to recall. Accused officialsmay forestall the Recall by resigning when a petition is launchedagainst them, otherwise they must stand for reëlection. The ballotwhich goes to the people contains, in brief, the objections to theofficial, and, in some states, also the reply of the accusedofficeholder. If defeated at the polls the accused official mustretire from office; if vindicated, he continues in office during theremainder of his term. The principle of the Recall was recognized in American stategovernment before the end of the eighteenth century, but in itspresent application it is much younger. In its modern form the Recallwas first used in 1903, when the city of Los Angeles applied it toelective municipal officials. Five years later Oregon adopted it forall state officers, and since 1908 it has spread to a number of otherstates, most of them in the western part of the country. The Recallhas been used chiefly against city officials, though in several statesit may be applied to a majority of both local and state officials. InOregon, California, Arizona, Colorado, and Nevada, the Recall may alsobe used against judges. 474. ARGUMENTS FOR THE RECALL. --Those favoring the Recall maintainthat it is the natural and legitimate expression of the right toremove unsatisfactory officials. It is pointed out that the Recallpermits longer terms for elective officials, for if the voters knowthat they can use the Recall to remove officials who proveunsatisfactory, they will feel safe in electing those officials forrelatively long terms. By reducing the number of elections, the devicelightens the burdens of the voter. The Recall is said to be awholesome reminder of preëlection promises. It is also maintained thatsince the Recall is a threat, it encourages officeholders to be honestand efficient. 475. OBJECTIONS URGED AGAINST THE RECALL. --In answer to the abovearguments, the opponents of the Recall claim that the deviceencourages officials to curry popular favor, regardless of publicduty. It may also place officials at the mercy of popular passion andcaprice. When it is applied to judges, the Recall threatens theintegrity and independence of a branch of government which ought to beremoved from popular clamor and prejudice. This last is a seriousobjection, for it may happen that judges subject to the Recall willhesitate to hand down decisions that may prove unpopular, however justthose decisions may be. For this reason the extension of the Recall tojudges is being strongly resisted. Even the most ardent advocates ofthe device are beginning to admit that the Recall is more applicableto administrative officials than to judges. 476. STATUS OF THE RECALL. --A satisfactory decision upon the merits ofthe Recall is difficult because it is so recent a development andstill so little used that few data are available. The state-wideRecall has been in existence for a number of years, yet few stateofficials have been removed by it. Los Angeles used the Recall tounseat the mayor in 1904 and in 1909, and in 1911 the device was usedagainst the mayor of Seattle. But the Recall is primarily a threat, and is rarely used. In view of this fact, the arguments for andagainst the device rest upon theory rather than upon actualexperience. The Recall has great possibilities for good if wiselyadministered, but it may become an evil influence if carelessly orrevengefully used. 477. SIGNIFICANCE OF POPULAR CONTROL. --The development of theInitiative, the Referendum, and the Recall indicates a growingimpatience with the abuses of party power, the evils of the longballot, and the corruption and inefficiency of many legislativebodies. It is significant that direct popular control has accompaniedthe widespread movement to reform municipal government, and that it isplaying an increasingly important part in the movement to reform stateadministration. Up to the present time, the Initiative, the Referendum, and the Recallhave been confined chiefly to the West, where political problems areless acute than in the East, and where, too, the tendency towarddirect participation in government has always been marked. Nevertheless, there is some indication that the future will see anextension of direct popular control, not only in the West, but also inother parts of the country. Whether or not this extension is desirablewe cannot now say. But certainly it is an interesting and importantdevelopment, and one demanding careful study and mature deliberationon the part of those who seek to make American government highlyeffective. QUESTIONS ON THE TEXT 1. What is the basis of popular control? 2. Name several methods of indirect control, and point out theobjections to each. 3. What is the Initiative? 4. Distinguish between the Direct and the Indirect Initiative. 5. What is the Referendum? 6. What is the extent of the Referendum in this country? 7. What is Direct Legislation? 8. Summarize the arguments in favor of Direct Legislation. 9. What objections are urged against Direct Legislation? 10. What is the Recall? 11. To what extent has the Recall been adopted in this country? 12. What arguments are used to justify the use of the Recall? 13. What are the chief objections to the Recall? 14. What is the present status of the Recall? 15. What is the significance of direct popular control? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxxvii. Or all of the following: 2. Beard, _American Government and Politics_, chapter xxiii. 3. Massachusetts Constitutional Convention Bulletins (1917), No. 6. 4. Munro, _The Government of the United States_, chapter xxv. 5. Lowell, _Public Opinion and Popular Government_, chapters xiii, xiv, and xv. QUESTIONS ON THE REQUIRED READINGS 1. Summarize the principles underlying the Initiative and Referendum. (Beard, pages 469-471. ) 2. Name some states in which the Initiative and the Referendum havebeen established. (Beard, page 463. ) 3. Describe the workings of the Initiative. (Munro, page 506. ) 4. Describe the workings of the Referendum. (Munro, pages 507-508. ) 5. To what extent has there been an attempt to apply the Initiativeand Referendum to national legislation? (Beard, pages 465-466. ) 6. In what ways does Direct Legislation establish a system of minorityrule? (Munro, page 515. ) 7. To what extent does Direct Legislation delay law-making? (Lowell, pages 226-228. ) 8. What is the nature of the laws enacted by the Initiative? (Lowell, pages 205-206. ) 9. What has been the attitude of the courts toward the Initiative andReferendum? (Massachusetts Bulletin, pages 41-43. ) 10. Enumerate the forms of the Recall. (Beard, pages 472-473. ) 11. What part did the Recall play in early American history? (Munro, page 516. ) 12. Describe the Recall election. (Munro, page 520. ) TOPICS FOR INVESTIGATION AND REPORT I 1. The proportion of the public officials of your municipality who maybe removed by an appointing authority. 2. Impeachment in your state. (Consult the state constitution. ) 3. Extent to which the constitution of your state has been amended. 4. The Initiative in your state. 5. The Referendum in your state. 6. Extent to which the Initiative and the Referendum are foundtogether in your state. 7. The Recall in your state. If this device has not been adopted inyour state, find out whether or not its adoption is being agitated. II 8. Development of Direct Legislation in the United States. (Munro, _The Initiative, Referendum and Recall_, chapter iv. ) 9. Representative versus Direct Legislation. (Munro, _The Initiative, Referendum and Recall_, chapters vii and viii. ) 10. The Initiative and Referendum in Oregon. (Kaye, _Readings in CivilGovernment_, pages 295-303; Munro, _The Initiative, Referendum andRecall_, chapters ix and x. ) 11. The Initiative in Switzerland. (_Annals_, vol. Xliii, pages 110-145. ) 12. The Referendum in Switzerland. (_Annals_, vol. Xliii, pages 110-145; Lowell, _Public Opinion and Popular Government_, chapter xii. ) 13. Development of the Recall. (Munro, _The Initiative, Referendum andRecall_, chapter xii. ) 14. The Recall in Los Angeles. (Munro, _The Initiative, Referendum andRecall_, chapter xiv. ) 15. The Recall in Oregon. (Munro, _The Initiative, Referendum andRecall_, chapter xi. ) 16. The Recall in Seattle. (Munro, _The Initiative, Referendum andRecall_, chapter xv. ) 17. The Recall in Switzerland. (_Annals_, vol. Xliii, pages 110-145. ) 18. The Judicial Recall. (_Annals_, vol. Xliii, part iii. ) 19. Judicial decisions relating to the Initiative, Referendum andRecall. (Beard and Schultz, _Documents on the State-wide Initiative, Referendum and Recall_, chapters xxxi-xxxvi. ) FOR CLASSROOM DISCUSSION 20. Should the Initiative and Referendum be applied to Nationallegislation? 21. Do the Initiative and Referendum increase the burden upon thevoter? 22. The effect of the Initiative and Referendum upon the character ofthe state legislature. 23. Should the Recall be applied to judges? 24. Merits and defects of such forms of direct popular control asexist in your state. 25. Future development of direct popular control in the United States. CHAPTER XXXVIII PUBLIC OPINION 478. THE NATURE OF PUBLIC OPINION. --One of the most powerfulinfluences in any community is that intangible something which we callPublic Opinion. Though everyone is familiar with it, the term PublicOpinion is difficult to define. Public Opinion is intimately connectedwith the opinion of the individual, and yet is something more than amere total of individual opinions. Every man has a set of opinions or beliefs which are characteristic ofhis native instincts, his home training, and other influences whichhave helped mould his personality. Wherever individuals associate, theopinions of each person affect and are affected by the opinions of hisfellows. As the result of this interaction we think of public opinionas being made up of a number of different currents, each embodying aview, a belief, or a doctrine. Where many individuals support a givenview with moderate intensity, or where a small group feels veryintensely upon a given topic, we say that Public Opinion has formed. Public Opinion may be defined as a definite focus of individualopinions which are either numerous or intense enough to constitute arecognizable force, and to exert a noticeable influence upon the lifeof the community. 479. PUBLIC OPINION AND LAW. --It is characteristic of the human mindthat we perceive concrete and tangible things more easily than weunderstand abstract and intangible forces. Law is a definite, concrete, almost tangible thing; we perceive its outlines, recognizeits various forms, and understand its nature and significance. But itis less easy to understand that law may be only a symptom of PublicOpinion, only the concrete expression of intangible communitysentiment. There is an interaction between law and Public Opinion, butthe latter is the more fundamental and the more powerful. PublicOpinion which is vigorous and well-organized may force the enactmentof law; on the other hand, a law which runs counter to the prevailingstate of Public Opinion may cease to be effective, because individualswill not coöperate in enforcing it. Law half leads, half followsPublic Opinion, and when legislators are skilled in discerning andinfluencing the mental attitudes of the people, law and Public Opinionpretty well keep pace with one another. 480. PUBLIC OPINION IN A DEMOCRACY. --The beliefs and opinions of themasses have been an important force even in the most absolute ofmonarchies; in representative democracies Public Opinion is even moreimportant. Under a democratic form of government the attitude of themasses tends to be one of inquiry, self-confidence, and self-expression upon public questions. Lord Bryce has pointed out thatbecause democracy permits and encourages freedom of discussion, PublicOpinion in a country like the United States becomes much more powerfulthan in less democratic countries. And not only is Public Opinion more powerful in a democracy, butdemocracy is impossible without the regular exercise of a well-informed and sensible opinion by the majority of its citizens. Democracy emphasizes government _by_ the people rather than government_of_ the people. Thus if genuine democracy is to be developed andsustained, the people must cultivate an attitude of constant vigilanceagainst civic indifference. Nominations and elections are focalperiods in government, but government is a continuous obligation whichrequires constant rather than intermittent attention. Where civicinterest is neither strong nor consistent, the virtues of democracymay be diffused in blind and leaderless wanderings. 481. DEVELOPMENT OF PUBLIC OPINION. --Even though never definitelyfocused or expressed, the vague beliefs, fancies, and prejudices ofindividuals may influence public affairs by causing community leadersto feel that "the people" will or will not tolerate a contemplatedline of action. But the influence exerted will be much greater if the opinions of theindividual are definite, and if there is some method of clarifying, coördinating and expressing the opinions of groups of individuals upona given subject. If the opinions of the individual are to be definiteand concrete, he must habitually come in contact with forceful personsand institutions; if the opinions of various individuals are to becoördinated and expressed there must be either physical contiguityamong people, or else adequate means of transportation andcommunication. We may now consider a few of the forces which serve to make definiteand to organize the opinions of individuals. 482. THE HOME. --Certainly no institution exerts a more powerfulinfluence upon the beliefs and opinions of the individual than thehome. Our basic ideals and traditions pass from generation togeneration through the continuity of the family life. During theplastic and impressionable period of infancy the child is constantlyunder the influence of the parents. At first fashioned largely by theparents, the beliefs and sentiments of the growing child are latermodified by contact with other family members. When children go out tothe school, the church or the workshop, beliefs and attitudesencountered outside the home are weighed in the light of familyteachings. When young men and young women make homes of their own, they in turn imprint upon their children a complex of tradition andopinion which is the compromise result of their own family training, modified by influences later encountered outside the family circle. 483. THE SCHOOL. --Supplementing, and in some respects supplanting, theinfluence of the home is the influence of the school. While still inthe plastic stage the child is given over to the moulding influencesof teacher and fellow-students. New contacts are made, new opinionsare encountered, new avenues of thought and action are opened to theyoung and growing mind. Of recent years the tendency of the school toidentify itself more closely with the practical life of the communityis increasing the power and influence of that institution. The schoolis proving a genuine means of transition between the relativelylocalized influence of the home and the more widely diffusedinfluences of the community. 484. THE CHURCH. --Closely related to the school as a determinant ofopinion is the church. In the early stages of social development thehome was equally the center of intellectual and religious life, but inrecent times the church and the school have become separate, thoughrelated, institutions. The child spends more time in school than inthe company of religious instructors other than his parents, butaffiliation with the church often continues throughout the life of theindividual, while the average child leaves school at a relativelyearly age. From the standpoint of Public Opinion, the primaryimportance of the church is that it exerts a powerful influence uponthe ideals and conduct of both young and old. And as in the case ofthe school, this influence is being deepened by the increasingly closeconnection between the church and the practical life of the community. 485. THE THEATER. --The theatre has always been a vital influence inman's aesthetic and emotional life. Drama, opera, comedy, andburlesque are variant forms, but they are alike in that they influencethe audience. In the last decade the moving picture has greatlyincreased the power and influence of the theatre. The low price of themoving picture brings the theatre to millions who formerly wereexcluded from any appreciable degree of theatrical entertainment. Thedaily moving picture attendance of ten million people, the stimulatingeffect of music, the strong emotional appeal, the tender age of manyof the audience, and the growing use of the moving picture aspropaganda, all combine to make the film a powerful factor in theformation of Public Opinion. 486. THE PRESS. --The press is the nervous system of the nation. Supplemented by other means of communication, and aided by agencies oftransportation, the press coördinates individuals not physicallycontiguous, and thus enables them to act in concert. It lets everybodyknow what everybody else is thinking, or at least what they aresupposed to be thinking. The forms of the printed page are infinitelyvarious: daily papers, weeklies, monthlies, pamphlets, and books, --allof these are increasingly numerous. Statesmen, teachers, reformers, propagandists, and professional writers combine to turn out tons ofprinted matter a day. Pictures, jokes, contests, and stories areresorted to for the purpose of attracting attention. Editorials, advertisements, and news articles are among the vehicles of expressionused. Printed matter does not wait for the individual to seek it out, but instead it goes to him. In various forms it encounters him in thestreet, stares at him from shop windows and billboards, forces itselfupon his attention in the street cars, and knocks at the door of hisprivate dwelling. In all its forms, it should be remembered, thedominant aim of the printed page is to influence the individual, tocause him to do something or to refrain from doing something. 487. GROWING IMPORTANCE OF PUBLIC OPINION. --Despite the volume ofEuropean immigration to this country, American ideals and institutionsare rendering our population more and more homogeneous, and thus moreopen to unifying influences. The increasing ease of transportation andcommunication is everywhere making isolation more difficult. Not onlyare the school, the church, the press, and the theatre widening inscope and increasing in influence, but new forms of expression aredeveloping. There is a growing number of private organizationsadvocating social, economic, or political reforms. The popularizationof psychology has encouraged the rise of innumerable forms ofpropaganda designed to influence the opinions of the community andnation. Occupational and social groups are everywhere organizing, clarifying their opinions, and expressing common principles in theeffort to influence the public mind. All of these factors combine toincrease the importance of Public Opinion in present-day Americanlife. 488. DANGERS OF UNREGULATED PUBLIC OPINION. --The growing power ofPublic Opinion brings with it increased possibilities for good, butalso increased possibilities for evil. In an important sense, this isthe age of the propagandist, the crank reformer, and the subsidizednewspaper, the age of the agitator who spreads lies through anonymousletters, unsigned posters, and irresponsible whisperings. Theindividual must be constantly on his guard against this flood; he mustrecognize that Public Opinion is often capricious, and that a suddenhysteria may inflict untold injury. The morality of a mob is inferiorto the morality of the individuals composing the mob, because in a mobthe sense of power is dominant and the sense of responsibility issuppressed. Properly speaking a mob depends upon physical contiguity, but the coördinating influence of rapid transportation andcommunication may create a mob spirit between individuals notphysically in contact. When propaganda lashes into a passion groups ofpeople in widely separated areas, democracy becomes the most dangerousof all forms of government: there is no sure hand upon the helm, thepeople control _en masse_, in a burst of passion they may lay wastethe social heritage of centuries. 489. FREEDOM A PARTIAL SAFEGUARD AGAINST UNSOUND PUBLIC OPINION. --While democracy facilitates the creation of the mob spirit, itlikewise carries within itself at least a partial remedy for unsoundPublic Opinion. Men's opinions are infinitely various: the samecommunity that produces the fanatic or the impractical idealistgenerally produces sensible and practical men as well. In politics meneverywhere tend to divide into a radical group and a conservativegroup, between which control of the government oscillates. Where freedom of expression is permitted, the existence of these twoantagonistic camps is automatically a safeguard of the public welfare. Any one of a number of groups of people might ruin the country if leftto themselves. But they are _not_ left to themselves. Their opponentsare constantly criticizing and checking them. When cranks launchpropaganda, conservative critics launch counter-propaganda; whenspecial interests attempt to influence the public mind, public-spirited individuals or organizations force both sides of the questionbefore the public. When public officials neglect their duties, athousand discerning men are ready to shout the fact from thehousetops. Though the majority party secures control of government, the minority is never idle. Rather, it is constantly watching, waiting, marshaling opinion against the majority, calling publicattention to the mistakes of their opponents, and agitating for achange of administration. 490. THE GUIDANCE OF PUBLIC OPINION. --Let us briefly consider thequestion of guiding or directing the formulation of sound PublicOpinion. In a free country, such guidance may sometimes provedangerous, and yet careful direction of the formulation of PublicOpinion is justified by two facts: First, the formulation of soundopinion is retarded by the great difficulty of securing adequateinformation on the great problems of modern civilization. Here theindividual needs some help. Second, everyone who can distinguishbetween license and liberty must agree that we should limit theinfluence of individuals and institutions which suppress minorityopinion, and distort facts in the effort to pervert Public Opinion. These considerations suggest two distinct lines of action. First, we can aid in the formulation of sound opinion by making iteasier for the individual to secure data and information on currenttopics. The extension and perfection of the postal service, theimprovement of our system of transportation, the spread of the schooland library, and possibly the free distribution of literature dealingwith the nature and functions of government, these and similarmeasures would prove helpful. Second, law and moral education ought to coöperate in suppressinginfluences which seek deliberately to poison or pervert the publicmind. Free speech is a priceless element in democracy, but just as wemust harmonize individual liberty with the interests of the group, sowe must prevent the use of free speech for criminal purposes. Especially ought the press and the school to be encouraged to giveboth sides of debatable questions. Every agency dealing with theissues of American life, indeed, ought to be careful not to distortthose issues by suppressing or misusing facts. Above all, we must becareful not to pander to low ideals by emphasizing the negative anddestructive side of our problems. 491. RESPONSIBILITY OF THE INDIVIDUAL. --A progressive civilizationconfers more and more benefits upon the individual, but his duties andresponsibilities increase with equal speed. As Theodore Roosevelt oncesaid, "It is not difficult to be virtuous in a cloistered and negativeway, " but honestly and effectively to fulfill the obligations ofcitizenship in a complex society is less easy. And yet the need ofindividual responsibility is infinitely greater in a modern communitythan among the members of an isolated and self-sufficient group. Whensmall isolated villages were the dominant form of American settlement, the laxness of one group did not vitally affect the welfare of othergroups. But so entwined are the present-day citizens of the UnitedStates that the acts of one individual may vitally affect the nationalwell-being. The carelessness of a food canner on the Pacific coast maycost the life of a family on the Atlantic seaboard; a swindleoriginating in the East may demoralize individuals throughout thecountry. The obligations of citizenship have become national as wellas local; in thought and in action the individual must function, notonly in terms of his locality, but in terms of the nation as well. 492. THE POWER OF THE INDIVIDUAL. --Measuring himself against more thana hundred million of his fellows, the average American citizen islikely to be overpowered by the apparent futility and powerlessness ofhis personal opinions. And yet the power of the nation is only theresult of the combined influences of its individual citizens. Allpower is with the individual. However much the absolute monarchy mayhave suppressed the individual, in a democracy he can become a vitalforce in government. We are too fond of taking censuses on the onehand, and of deferring to governmental mechanisms on the other. Theindividual _is_ master of his fate, and he _is_ the ultimatedeterminant of government. If government is sound, the misbehavior ofthe individual can ruin it; if government is defective, the assumptionof responsibility by the individual must ultimately reform it. We donot need a fool-proof government half as much as we need active, responsible individuals to run the government we already have. "Howlong will American democracy last?" a European statesman once asked. "Just so long, " the answer might have been, "as Americans honestly andintelligently grapple with the problems confronting them, holdingthemselves individually responsible for the conduct of government, andseeking consistently to exert an influence upon their community lifewhich shall be constructive and inspirational. " QUESTIONS ON THE TEXT 1. Define Public Opinion. 2. What is the relation of Public Opinion to law? 3. What is the importance of Public Opinion in a democracy? 4. Why should the opinions of individuals be clarified and organized? 5. Describe the importance of home life in this regard. 6. How does the school affect the opinions of individuals? 7. What is the significance of the church with regard to PublicOpinion? 8. What is the effect of the theatre upon Public Opinion? 9. Explain clearly the relation of the press to Public Opinion. 10. What are the dangers of unregulated Public Opinion? 11. In what way is freedom a safeguard against unsound Public Opinion? 12. What two facts justify the guidance of Public Opinion? 13. Discuss the relation of Public Opinion to the individual. 14. What can be said as to the power of the individual? REQUIRED READINGS 1. Williamson, _Readings in American Democracy_, chapter xxxviii. Or all of the following: 2. Brewer, _American Citizenship_, chapter v. 3. Bryce, _Modern Democracies_, vol. I, chapter xv; vol. Ii, chapterxliv. 4. Lowell, _Popular Government and Public Opinion_, chapter iii. QUESTIONS ON THE REQUIRED READINGS 1. What is the relation of homogeneity of population to PublicOpinion? (Lowell, pages 34-35. ) 2. Why must the minority be free to express its dissent? (Lowell, pages 36-37. ) 3. How is the drift of Public Opinion to be determined? (Bryce, vol. I, pages 155-156. ) 4. What is the relation of Public Opinion to voting? (Bryce, vol. I, pages 159-161. ) 5. Compare Public Opinion in the United States with Public Opinion inother countries. (Bryce, vol. Ii, pages 112-113. ) 6. Compare the press of the United States with that of Europe. (Bryce, vol. Ii, page 118. ) 7. What is the relation of Public Opinion to local self-government?(Bryce, vol. Ii, pages 115-116. ) 8. What is the relation of Public Opinion to social legislation?(Bryce. Vol. Ii, page 126. ) 9. What is the great defect of Public Opinion? (Bryce, vol. I, page162. ) 10. What is the one great clear purpose in civic life? (Brewer, pages120-121. ) 11. What qualities must we possess in order to carry out this purpose?(Brewer, pages 120-121. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a list of some of your beliefs and opinions concerning therecent World War, and try in each case to trace the origin of eachbelief or opinion. 2. Toward which political party are you inclined? To what extent isthis inclination due to (a) the influence of your parents; (b) what you have read in the newspapers; (c) what you have personally observed? 3. Make a list of the opinions which you originally acquired in yourhome, and which have since been modified by what you have studied inschool. 4. To what extent are your personal standards of conduct traceable towhat you have seen at the theatre? 5. List the private organizations in your community which exist forthe purpose of advocating reforms of various kinds. 6. Make a study of the forms of propaganda utilized in a single copyof any metropolitan newspaper. 7. To what extent does your local press give both sides of debatablequestions? II 8. The nature of Public Opinion. (Lowell, _Public Opinion and PopularGovernment_, chapters i and ii. ) 9. Relation of Public Opinion to law. (Forman, _The AmericanDemocracy_, pages 235-238. ) 10. Government by Public Opinion. (Bryce, _The American Commonwealth_, vol. Ii, chapter lxxvii. ) 11. The type of questions to which Public Opinion can apply. (Lowell, _Public Opinion and Popular Government_, chapter iv. ) 12. The relation of tradition to Public Opinion. (Bryce, _ModernDemocracies_, vol. I, chapter xiii. ) 13. Private associations for the advancement of group interests. (Young, _The New American Government and its Work_, chapter xxvii. ) 14. Tyranny of the majority. (Bryce, _The American Commonwealth_, vol. Ii, chapters lxxxiv and lxxxv. ) 15. Attitude of the individual in a democracy. (Speare and Norris, _World War Issues and Ideals_, pages 170-182. ) 16. The obligations of citizenship. (Cleveland, _Organized Democracy_, chapter viii; Brewer, _American Citizenship_, chapters i-iv. ) 17. The hindrances to good citizenship. (Bryce, _The Hindrances toGood Citizenship_. ) 18. Leadership in a democracy. (Bryce, _Modern Democracies_, vol. Ii, chapter lxxvi. ) 19. Relation between freedom and responsibility. (Hadley, _TheRelation between Freedom and Responsibility in the Evolution ofDemocratic Government_. ) 20. The influence of ideals upon civic conduct. (Adams, _The Power ofIdeals in American History_. ) 21. Wherein Public Opinion fails. (Bryce, _The American Commonwealth_, vol. Ii, chapter lxxxvi. ) 22. Wherein Public Opinion succeeds. (Bryce, _The AmericanCommonwealth_, vol. Ii, chapter lxxxvii. ) FOR CLASSROOM DISCUSSION 23. Suppose the public highways in your locality were in badcondition. How would you go about it to remedy the situation? 24. Which has more influence upon the opinions of people, the schoolor the press? 25. Are the Initiative and the Referendum adequate methods ofascertaining the prevailing state of Public Opinion? 26. Is freedom of speech an adequate safeguard of the rights ofminorities? 27. To what extent, if to any, should Federal and state authoritiesdistribute free literature concerning the nature and functions ofAmerican government? 28. How might coöperation in the study of civic problems be promotedin your community? PART V--THE MECHANISM OF GOVERNMENT A. THE FEDERAL GOVERNMENT CHAPTER XXXIX THE FEDERAL SYSTEM OF GOVERNMENT A. BACKGROUND OF THE FEDERAL CONSTITUTION [Footnote: For a fullerdiscussion of the background of the Federal Constitution, see ChaptersII and III. ] 493. COLONIAL GOVERNMENTS. --It is possible to classify the Americancolonies as charter, royal, and proprietary, and to point outimportant differences between these three types. But these differences fade in importance before the broad andfundamental similarities existing among the colonies. Just as therewas among the colonies a substantial unity of race, language, andreligion, so there was a basic similarity in political institutions. All of the colonies were under relatively the same degree of controlby England, and consequently all of them had much the same degree offreedom in managing their own affairs. In each colony a governor actedas chief executive. In each colony, likewise, there was a legislature. In most of the colonies this legislature consisted of two houses, thelower of which was elected by the people. Colonial jurisprudenceeverywhere grounded upon the common law of England. In each colonythere was a system of courts, largely following English judicialprocedure. In local government there was a good deal of variationamong the colonies, but everywhere the English model was followed, andeverywhere the principle of local autonomy was asserted andchampioned. 494. EARLY ATTEMPTS AT UNION. --These fundamental similarities, together with the rise of common problems and the pressure of outsideenemies, encouraged federation among the colonies. A notable attemptat union was made in 1643, when Massachusetts Bay, Plymouth, Connecticut, and New Haven united in a league of friendship, primarilyfor mutual defense against the Indians. This league rendered effectiveservice during the forty years of its life. In 1754 delegates fromseven colonies met at Albany and adopted a plan of union proposed byBenjamin Franklin. The project was never carried through, but it issignificant as indicating the trend toward union. Still later (1765)the Stamp Act Congress showed that the delegates of at least ninecolonies could join in a protest against England's taxation policy. The two Continental Congresses may also be considered as steps towardunion. The first of these (1774) concerned itself chiefly with adeclaration of rights and grievances, but the second (1775-1781) wentso far as to assume and exercise revolutionary powers. 495. THE ARTICLES OF CONFEDERATION. --Impelled by the necessity of aunited front against England, the Second Continental Congress soughtto give force to the Declaration of Independence by drawing up acomprehensive plan of union. This plan, embodied in the Articles ofConfederation, was put into operation on March 1, 1781. The newgovernment was a confederation or league of states, rather than afederal government such as we have to-day. The states gave up suchimportant powers as the right to declare war, and the right to borrowand coin money, but the Articles specifically declared that "eachstate retains its sovereignty, freedom, and independence, and everypower, jurisdiction, and right which is not by this federationdelegated to the United States in Congress assembled. " The Confederation government was seriously defective. There was nonational executive and no judiciary. All authority was concentrated ina one-chambered congress, the delegates to which were entirely underthe control of the state legislatures which chose them. The centralgovernment had no real authority or power. Its congress could reachthe individual only through the action of the state governments, andthese it could not coerce. The Confederation government managed tocarry the states through the last two years of the war, and thendeclined rapidly in power and influence. The Congress could not forcethe states to coöperate with one another in matters of nationalinterest. The inability of the central government, either to pay theinterest on the national debt or to force the states to observetreaties which we made with foreign powers, cost us the respect ofEurope. "We were bullied by England, " writes John Fiske of thisperiod, "insulted by France, and looked askance at in Holland. " The defects of the Articles could not be remedied, for amendment wasby unanimous consent only, and on every occasion that an amendment wasproposed, one or more states refused their assent. By 1786 it was theconviction of most American statesmen that if the country were to besaved from anarchy and ruin the central government would have to bereorganized. 496. THE CONSTITUTIONAL CONVENTION OF 1787. --In May, 1787, delegatesfrom every state except Rhode Island came together in Philadelphia toconsider "means necessary to render the Constitution of the Federalgovernment adequate to the exigencies of the Union. " Early in the session Edmund Randolph introduced what has been calledthe Virginia plan. This called for an abandonment of the Articles ofConfederation and demanded the establishment of a strong nationalgovernment. The Virginia plan favored the larger and more populousstates by providing a national Congress of two houses, in both ofwhich representation was to be on the basis of population. Of the several other plans put before the Convention the most notablewas that proposed by William Paterson of New Jersey. The adherents ofthis plan wished to retain the Articles of Confederation. The Articleswere to be revised so as to give greater powers to the centralgovernment, but in most practical concerns the states were to continuesovereign. The New Jersey plan opposed the idea of a two-chamberedlegislature in which the states were to be represented on the basis ofpopulation. If representation in both houses of Congress were on thebasis of population, it was declared, the larger and more populousstates would be able to dominate the National government and therights of the smaller states would be inadequately safeguarded. After a long debate a compromise plan was adopted. It was agreed thatthere should be established a strong national government, but onesufficiently checked by constitutional provisions to safeguard therights of the states. The national legislature was to consist of twohouses. In the upper house the states were to be represented equally, while in the lower chamber representation was to be on the basis ofpopulation. 497. THE NEW GOVERNMENT. --The Convention completed the Constitution onSeptember 17, 1787, and the document was immediately placed before thestates. By the summer of 1788 the necessary number of states hadratified the Constitution, and on April 30, 1789, the new governmentwas put to work under George Washington as first President. The English statesman Gladstone has implied that our Constitution wasan original creation, "struck off at a given time by the brain andpurpose of man. " But as a matter of fact the Constitution was not somuch the result of political originality as it was a careful selectionfrom British and colonial experience. The trial of the Confederationgovernment had proved especially valuable, and in drawing up theFederal Constitution, the members of the Constitutional Conventionwere careful to avoid the defects of the Articles of Confederation. The most fundamental difference between the Confederation governmentand the new Federal government was that the Federal Constitutionprovided for an adequate executive and judiciary to enforce theFederal laws directly upon the individual. The Confederationgovernment, it will be remembered, had been obliged to rely upon thestates for the enforcement of all laws. B. FRAMEWORK OF THE FEDERAL GOVERNMENT 498. THE THEORY OF LIMITED GOVERNMENT. --The new Constitution created asystem of Federal government which retains the advantages of localself-government for the states, but at the same time secures thestrength which results from union. The government of the United Statesis a compromise between centralization and decentralization, thebalance between these two extremes being maintained by a ratherelaborate system of checks, balances, and limitations. These checks, balances, and limitations we may consider under fiveheads: first, private rights under the Federal Constitution; second, the threefold division of powers in the Federal government; third, thedivision of powers between Federal and state governments; fourth, interstate relations; and fifth, the supremacy of Federal law. 499. PRIVATE RIGHTS UNDER THE FEDERAL CONSTITUTION. [Footnote: For theprohibitions upon the states in favor of private rights, see ChapterXLV. ]--The constitutional limitations upon the Federal government inbehalf of private rights fall into two groups: those designed toprotect personal liberty, [Footnote: Some of the limitations in favorof personal liberty enumerated in this section are contained in thefirst ten amendments to the Constitution, adopted in a body in 1791. ]and those designed to protect property rights. In many important particulars the Federal Constitution protectspersonal liberty against arbitrary interference on the part of theNational government. Congress may pass no law establishing orprohibiting any religion, or abridging either freedom of speech orfreedom of the press. The right of the people peaceably to assembleand petition the government for a redress of grievances shall not bedenied. The privilege of the writ of _habeas corpus_ shall not besuspended. Congress may not define treason. Neither bills ofattainder, nor _ex-post facto_ legislation may be passed by Congress. Jury trial, fair bail, and freedom from both excessive fines and crueland unusual punishments are guaranteed by the Constitution. Neitherlife, liberty nor property may be taken without due process of law. The Federal Constitution likewise protects the property rights of theindividual against Federal aggression. The state governments alone maydefine property. Congress may not tax articles which are exported fromany state. All direct taxes must be apportioned according topopulation. [Footnote: The Sixteenth Amendment exempts the income taxfrom this rule. ] All duties, imposts, and excises must be uniform, that is, they must fall upon the same article with the same weightwherever found. Under the right of eminent domain, the Federalgovernment may take private property for public use, but in such acase the owner must be fairly compensated. 500. THREEFOLD DIVISION OF POWERS IN THE FEDERAL GOVERNMENT. --Asecond distinctive feature of our system of government is that Federalauthority is distributed among three distinct branches: the executive, the legislative, and the judicial. This is part of the general systemof "checks and balances" by means of which the framers of theConstitution sought to prevent any branch or division of governmentfrom securing undue control of the governmental machinery. The basic merit of this threefold division of powers is that itsafeguards each branch of government against aggression from the othertwo branches. And yet this division of powers is by no means socomplete that the three branches do not work together. For example, both the appointive and the treaty-making powers of the President areshared by the Senate. The President shares in legislation through hisveto power, as well as through his right to send messages to Congress. The Senate has the right to impeach all civil officers of the UnitedStates, and may even exert some control over the Supreme Court throughits right to prescribe the number of its judges and the amount oftheir salaries. The judiciary, on the other hand, enjoys the uniquepower of passing upon the constitutionality of the acts of the othertwo branches of government. 501. DIVISION OF POWERS BETWEEN FEDERAL AND STATE GOVERNMENTS. --Another feature of the check and balance system is that authority isdivided between Federal and state governments. The Tenth Amendmentdeclares that "the powers not delegated to the United States by theConstitution, nor prohibited by it to the states, are reserved to thestates. " Thus we speak of the National government as enjoyingdelegated or enumerated powers, while the state governments haveresidual or unenumerated powers. The Federal government must show somespecific or implied grant of power for everything that it does, butstate governments need only show that the Federal Constitution doesnot prohibit them from doing whatever they see fit. This division of powers between Federal and state governments hasseveral distinct advantages. For example, it allows Federal and stategovernments to act as a check upon one another. Furthermore, thedevice admirably divides governmental labor: the Federal government isgiven control of matters essentially national, while the states areleft in charge of affairs distinctly state or local in character. 502. INTERSTATE RELATIONS. --Further to guarantee the integrity of theFederal system, the Constitution specifies the fundamental nature ofinterstate relations. The states are independent of one another, andare equal in Federal law. The laws of a state have no force, and theirpublic officials have no authority, beyond the state limits. The Constitution specifically provides that "full faith and creditshall be given in each state to the public acts, records, and judicialproceedings of every other state. " This does not mean that the laws ofa particular state are binding upon persons in other states. It doesmean, however, that the courts of each state shall endeavor to givethe same force to the laws of a neighboring state as those laws wouldhave in the courts of the legislating state. To prevent discriminations against citizens of other states, theFederal Constitution provides that the citizens of each state are"entitled to all the privileges and immunities of citizens in theseveral states. " This means that a citizen of one state may remove toa neighboring state, and there enjoy the same civil rights that thecitizens of the latter state enjoy. In order that fugitive criminals may be tried and punished, theConstitution further provides that "a person charged in any state withtreason, felony, or other crime, who shall flee from justice, and befound in another state, shall, on the demand of the executiveauthority of the state from which he fled, be delivered up to beremoved to the state having jurisdiction of the crime. " 503. SUPREMACY OF FEDERAL LAW. --A last distinctive feature of oursystem of government is that Federal law is supreme. The Constitutionstates: "This Constitution and the laws of the United States whichshall be made in pursuance thereof, and all treaties made or whichshall be made under the authority of the United States shall be thesupreme law of the land. " The states are supreme in their sphere ofaction; nevertheless, when it is claimed that there is a conflictbetween state and Federal law, the latter prevails. Federal law is thesupreme law of the land, and, in the last instance, it is the SupremeCourt of the United States which is the interpreter of that law. Thedecisions of the Supreme Court are binding upon the Federalgovernment, upon the several states, and upon private individuals. C. DEVELOPMENT OF THE FEDERAL CONSTITUTION 504. THE FORMAL AMENDING PROCESS. --The Constitution of the UnitedStates may be formally amended in any one of four ways. First, anamendment may be proposed by a two-thirds vote of each House ofCongress, and ratified by the legislatures of three fourths of thestates. Second, an amendment may be proposed by a two-thirds vote ofeach House of Congress and ratified by conventions in three fourths ofthe States. Third, an amendment may be proposed by a nationalconvention, called by Congress upon the request of the legislatures oftwo thirds of the states, and ratified by the legislatures of threefourths of the states. The fourth method resembles the third, exceptthat ratification is by conventions in three fourths of the states. 505. AMENDMENTS I-XIX. --There have been nineteen Amendments to theFederal Constitution. [Footnote: For the full text of these Amendmentssee the Appendix. ] Of these the first ten were adopted as a body in 1791, to satisfythose who feared that the new Constitution did not adequately protectindividual or states' rights against Federal aggression. Amendments I-VIII are designed to protect the fundamental rights of the individual. The Ninth and Tenth express the principle that the Federal governmentis one of enumerated powers, while those powers not specificallyconferred upon the Federal government by the Constitution are reservedto the states or to the people. The Eleventh Amendment, adopted in 1798, provided that the Federaljudicial power should not be construed to extend to any suit against astate by citizens of another state, or by citizens or subjects of anyforeign state. The Twelfth Amendment, adopted in 1804, provided that presidentialelectors should cast separate ballots for President and VicePresident. The Thirteenth Amendment (1865) abolished slavery, the Fourteenth(1868) defined citizenship and sought to prevent the states fromdiscriminating against certain classes of citizens, while theFifteenth Amendment (1870) declared that the right of citizens of theUnited States to vote shall not be denied or abridged on account ofrace, color, or previous condition of servitude. In 1913 the Sixteenth Amendment authorized Congress to tax incomeswithout apportionment among the several states, and without regard toany census or enumeration. In the same year the Seventeenth Amendment provided for the directelection of United States Senators. In 1919 an Eighteenth Amendment prohibited the manufacture, sale, ortransportation of intoxicating liquors within, the importation thereofinto, or the exportation thereof from, the United States. A Nineteenth Amendment was adopted in 1920. This declared that theright to vote shall not be denied to any citizen of the United Stateson account of sex. 506. CONSTITUTIONAL CHANGES THROUGH JUDICIAL INTERPRETATION. --TheFederal Constitution has also been modified and developed by judicialinterpretation. The United States Supreme Court has maintained thatthe Federal government possesses not only those powers expresslygranted by the Constitution, but also those powers which are includedwith, or implied from, powers expressly granted. This liberalconstruction is authorized by the Constitution itself, for the lastclause in Section VIII of Article One of that document declares thatCongress shall have power to "make all laws which shall be necessaryand proper for carrying into execution" its enumerated powers. Underthis doctrine of implied powers, the influence of the Nationalgovernment has been markedly extended, chiefly with regard to the warpower, the power to regulate interstate commerce, and the power tolevy taxes and borrow money. 507. CONSTITUTIONAL CHANGES THROUGH USAGE. --The Federal Constitutionhas also been modified by the force of custom and political practices. Examples of the power of usage to modify the Constitution arenumerous, but a few will suffice to illustrate the principle. Customhas limited the President of the United States to two terms. Inconformity with a long-established custom, Presidential electors donot exercise independent judgment, but merely register the vote oftheir respective constituents. Though the Constitution provides thatthe appointive power of the President shall be exercised with theadvice and consent of the Senate, custom virtually prohibits theSenate from challenging the President's Cabinet appointments. On theother hand, many executive appointments of minor importance aredetermined solely by members of Congress. Usage decrees that thePresident alone may remove officers which he has appointed with theadvice and consent of the Senate. Lastly, the legislative committeesystem, as well as the entire machinery of the political party, is theoutcome of custom. Concerning these important instruments of practicalpolitics, the Constitution is silent. QUESTIONS ON THE TEXT 1. Point out some similarities among the American colonialgovernments. 2. Describe some of the earlier attempts at union. 3. What was the nature of the Confederation government? 4. For what specific purpose was the Constitutional Conventionconvened? 5. What was the Virginia plan? The New Jersey plan? 6. What was the fundamental difference between the Confederationgovernment and the new Federal government? 7. What is the theory of limited government? 8. What two classes of private rights are safeguarded by the FederalConstitution? 9. What is the nature and purpose of the threefold division of powers? 10. To what extent does the Constitution divide powers between Federaland state governments? 11. Outline the nature of interstate relations, as provided for in theFederal Constitution. 12. What is meant by saying that Federal law is supreme? 13. By what four methods may the Federal Constitution be amended? 14. Enumerate and briefly characterize the nineteen amendments to theFederal Constitution. 15. To what extent has the Federal Constitution been modified byjudicial interpretation? 16. How may the Constitution be modified by usage? Give some examples. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter iii. 2. Guitteau, _Government and Politics in the United States_, chapterxviii. 3. Munro, _The Government of the United States_, chapter v. 4. Review chapters ii, iii and iv of the text. QUESTIONS ON THE REQUIRED READINGS 1. What were the chief powers of the New England Confederation?(Guitteau, page 208. ) 2. What was the nature of the Stamp Act Congress? (Guitteau, pages208-209. ) 3. What was the most fatal weakness of the Confederation government?(Guitteau, page 212. ) 4. Outline the movement for constitutional revision. (Beard, pages 42-44. ) 5. Discuss the membership of the Constitutional Convention. (Beard, pages 44-45. ) 6. Outline the defects of the Articles of Confederation which wereavoided in framing the Federal Constitution. (Beard, pages 53-56. ) 7. What were some of the objections to the ratification of the FederalConstitution? (Beard, pages 56-58. ) 8. Compare the English and American Constitutions with respect toflexibility. (Munro, pages 57-58. ) 9. What effect has constitutional development had upon the division ofpowers? (Munro, pages 69-70. ) 10. Has the development of the Federal Constitution made governmentmore or less democratic? (Munro, page 70. ) TOPICS FOR INVESTIGATION AND REPORT I 1. The protection of your personal liberty under the FederalConstitution. 2. The protection of your property rights under the FederalConstitution. 3. Compare the first eight amendments to the Federal Constitution withthe bill of rights in your state constitution. 4. Compare the Federal Constitution with the constitution of yourstate with respect to length, number of subjects treated, andcomplexity of language. 5. The process of extradition between your state and neighboringcommonwealths. II 6. Evolution of the state. (Gettell, _Problems in PoliticalEvolution_, chapter i. ) 7. Nature of Federal government. (Gettell, _Readings in PoliticalScience_, pages 268-270. ) 8. Advantages and disadvantages of Federal government. (Gettell, _Readings in Political Science_, pages 276-280. ) 9. Colonial origins of the Federal Constitution. (Beard, _AmericanGovernment and Politics_, chapter i; Munro, _The Government of theUnited States_, chapter i; Reed, _Form and Functions of AmericanGovernment_, chapter i. ) 10. Preliminaries of national government. (Beard, _American Governmentand Politics_, chapter ii; Munro, _The Government of the UnitedStates_, chapter ii. ) 11. The meaning of "We, the People of the United States, " in thePreamble to the Constitution. (Taft, _Popular Government_, chapter i. ) 12. Sovereignty. (Gettell, _Introduction to Political Science_, chapter viii; Leacock, _Elements of Political Science_, chapter iv. ) 13. Relation of state and Federal governments. (Guitteau, _Governmentand Politics in the United States_, chapter xxi. ) 14. The supremacy of Federal law. (Munro, _The Government of theUnited States_, chapter iv. ) 15. The check and balance system. (Gettell, _Readings in PoliticalScience_, pages 332-336; Forman, _The American Republic_, chapter iv. ) 16. The separation of powers. (Beard, _American Government andPolitics_, pages 152-155; Gettell, _Introduction to PoliticalScience_, chapter xvii; Leacock, _Elements of Political Science_, partii, chapter i. ) 17. Interstate relations. (Leacock, _Elements of Political Science_, chapter vi. ) 18. Personal liberty and government. (Cleveland, _OrganizedDemocracy_, chapter vii; Gettell, _Introduction to Political Science_, chapter ix. ) 19. The doctrine of implied powers. (Guitteau, _Government andPolitics in the United States_, chapter xx. ) 20. Evolution of the Federal Constitution. (Kimball, _The NationalGovernment of the United States_, chapter ii. ) FOR CLASSROOM DISCUSSION 21. Is the Federal Constitution too difficult of amendment? Is it tooeasily amended? 22. Does the Constitution adequately protect state governments againstFederal aggression? 23. Has judicial interpretation of the Constitution proved helpful orharmful? 24. Has constitutional modification through usage proved helpful orharmful? CHAPTER XL THE PRESIDENT OF THE UNITED STATES A. CHOOSING THE PRESIDENT 508. ORIGINAL METHOD OF CHOOSING THE PRESIDENT. --The FederalConstitution sought to protect the office of chief magistrate againstpopular passion by providing for the indirect election of thePresident. According to the Constitution, each state was to appoint, "in such manner as the legislature thereof may direct, " a number ofelectors equal to the state's combined quota of senators andrepresentatives in Congress. These electors were to meet, each groupin its own state, and were to vote by ballot for two persons. Theseballots were then to be transmitted sealed to Congress, where thePresident of the Senate was to open and count them in the presence ofboth houses. The person receiving the highest number of votes was tobe declared President, while the individual obtaining the next highestnumber was to fill the office of Vice President. 509. CHANGES IN THE ORIGINAL METHOD OF CHOOSING THE PRESIDENT. --Threeimportant changes have been brought about in the original method ofchoosing the President. At the beginning of our national history, the state legislaturesthemselves chose the Presidential electors, but with the spread ofdemocracy the legislatures gradually transferred the choice of theseelectors to the people. To-day Presidential electors are in everystate chosen by popular vote, on a general state-wide ticket. After the election of 1800 it became apparent that in order to preventthe candidate for Vice President from defeating the candidate forPresident, there would have to be a separate ballot for each of theseofficers. In 1804 there was accordingly passed the Twelfth Amendmentto the Constitution, providing that Presidential electors shouldthenceforth cast separate ballots for President and Vice President. Party politics have effected a third change in the original method ofchoosing the President. The Constitution evidently intended that thePresidential electors should be men of high repute, and that theyshould select the nation's chief executive as the result of maturedeliberation and independent judgment. But as early as the thirdPresidential election (1796) it became clearly understood that theelectors would merely register the opinions of their constituents. Technically the electors still choose the President; as a matter offact they exercise no discretion, but merely express decisionspreviously reached by their respective constituents. 510. PRESENT METHOD OF CHOOSING THE PRESIDENT. --To-day the Presidentof the United States is elected as follows: Each political party nominates a candidate for the presidency at anational convention held in June or July of the presidential year. Atabout the same time the various parties in each state nominate thequota of presidential electors to which the state is entitled. Thepeople vote on these electors on the Tuesday following the firstMonday in November of each leap year. In each state the electorsreceiving a plurality assemble at the state capitol on the secondMonday in January following their election, and vote directly forPresident and Vice President. These votes are then certified and sentto the President of the Senate. On the second Wednesday in February, this officer opens them, and in the presence of the two houses ofCongress, counts them, and declares elected the candidate who hasreceived the majority of the electoral votes. If no candidate has amajority, the House of Representatives elects one of the three leadingcandidates, the Representatives from each state casting one vote. In1800 and again in 1824, the presidential election was thus decided bythe House. 511. QUALIFICATIONS. --All persons who are entitled to vote for themost numerous branch of the state legislature are entitled, likewise, to vote in presidential elections. [Footnote: For limitations upon thesuffrage in the various states, see Chapter XXXIII, Section 415. ] No presidential elector may hold any office of trust or profit underthe United States. By custom electors are also residents of thedistrict from which they are chosen. The President of the United States must be a natural-born citizen ofthe United States and must be at least thirty-five years of age. Hemust also have been a resident of the United States for fourteenyears. 512. COMPENSATION. --The President's salary is determined by Congress, but the amount may be neither increased nor decreased for the existingpresidential term. Between 1789 and 1873 the presidential salary was$25, 000, and in 1873 it was increased to $50, 000 a year. Since 1909the President has received an annual salary of $75, 000, plus anallowance for travelling expenses and the upkeep of the White House orExecutive Mansion. 513. TERM AND SUCCESSION. --The President-elect is inaugurated on the4th of March following his election, and serves until the 4th of Marchfour years later. By custom, though not by law, he is limited to twoterms. The Constitution provides that in case the President is removed byimpeachment, death, resignation, or inability, his duties shalldevolve upon the Vice President. In 1886 the Presidential SuccessionAct provided that in case of the inability of both President and VicePresident the Cabinet officers shall succeed in the following order:Secretary of State, Secretary of the Treasury, Secretary of War, Attorney-General, Postmaster-General, Secretary of the Navy, andSecretary of the Interior. No Cabinet officer has ever succeeded tothe Presidency, but Presidents Tyler, Fillmore, Johnson, Arthur, andRoosevelt were formerly Vice Presidents who ascended to the Presidencybecause of the death of the chief executive. 514. THE VICE PRESIDENT. --The Vice President of the United States iselected in the same manner and by the same electors as the President, with this exception: The failure of any Vice-Presidential candidate toreceive a majority of the electoral votes permits the Vice Presidentto be chosen by the Senate from the two candidates receiving thehighest number of electoral votes. The qualifications for the VicePresident are the same as for the President. The Vice Presidentssalary is $12, 000 a year. Aside from the fact that he may succeed the President there is littleto be said about the Vice President. He presides over the Senate, buthe is not a member of that body. He can neither appoint committees, nor even vote, except in case of a tie. Vice Presidents have generallyexerted little influence upon national affairs. During PresidentWilson's second term, neither the President's extended absence inEurope, nor his serious illness at home, operated to increase theinfluence of the Vice President. Under President Harding'sadministration, however, Vice President Coolidge was accordedconsiderable recognition, including the privilege of sitting in thePresident's Cabinet meetings. B. DUTIES AND POWERS OP THE PRESIDENT 515. GENERAL STATUS OF THE PRESIDENT--The President of the UnitedStates acts as the head of the executive branch of government. Sincethe executive is independent of the other two branches, the Presidentis subject to the control of neither legislature nor judiciary. ThePresident cannot be arrested for any cause whatsoever. No ordinarycourt has jurisdiction over the Chief Magistrate, though misconductmay result in his being impeached by the Senate of the United States. The President enjoys extensive powers, some of which are enumerated inthe Constitution, [Footnote: Article II] and others of which he hasacquired by the force of custom. These powers are divisible into fourgroups, which may be discussed in the following order: War powers, powers with reference to foreign affairs, administrative powers, andlegislative powers. 516. WAR POWERS OF THE PRESIDENT. --Section II of Article II of theConstitution provides that the President shall be "commander-in-chiefof the army and navy of the United States, and of the militia of theseveral states when called into actual service of the United States. "In pursuance of this power the President controls and directs thenation's military and naval forces, and appoints all army and navalofficers. [Footnote: In time of war, the President may dismiss theseofficers at will; in time of peace, however, they are removed bycourt-martial. ] The execution of the military law under which the armyand navy are governed is also directed by the President. The Presidentmay call out the state militia, when in his judgment such action isnecessary in order to suppress insurrection, repel invasion, orenforce the laws. In case of war with foreign countries, the Presidentas commander-in-chief assumes full direction of hostilities. So long as he acts within the bounds of international law, thePresident may do anything which he deems necessary to weaken the powerof the enemy. In the exercise of this right President Lincolnblockaded the southern ports during the Civil War, suspended the writof _habeas corpus_, declared martial law in many districts, and freedthe slaves by proclamation. During the World War (1917-1921), thepowers of President Wilson were greatly expanded. For the purpose ofbringing the struggle with Germany to a successful termination, Congress conferred upon the President large powers of control overfood, fuel, shipbuilding, and the export trade. The railway, telegraph, and wireless systems were taken over by the governmentunder the President's war powers. An important phase of the President's war powers is the constitutionalcharge to take care that the laws be faithfully executed. Usually theadministration of law is a peaceful process, but when the civilauthorities are rendered powerless by persons defying Federal law, thePresident may use his military power to restore order. On threenotable occasions the President has enforced the laws by the use ordisplay of military force. In 1794 President Washington called out themilitia of four states to suppress the Whiskey Rebellion. During theCivil War, President Lincoln resorted to military force to execute thelaws. Again, in 1894, President Cleveland used regular troops toprevent railway strikers in Chicago from interfering with the Federalmails. 517. CONTROL OVER FOREIGN AFFAIRS. --The Constitution vests in thePresident the power to negotiate treaties and conventions with foreignnations. In practice the President usually acts through the Secretaryof State. During the process of negotiation it is customary for thePresident to consult with the Senate committee on foreign relations, as well as with the leaders of the senatorial majority. Suchconsultation is a wise step, because no treaty may become law unlessratified by the Senate. The President receives diplomatic representatives from foreigncountries. This is largely a ceremonial duty, but it may involveserious consequences. When the independence of a foreign country is indoubt, or when the representative of any nation is personallyobjectionable to our government, the President may refuse to receivethe foreign representative. In case relations between this and aforeign country become strained, or in case the representative of aforeign power is guilty of misconduct, the President may request thewithdrawal of, or may even dismiss, the foreign representative. Thisseverance of diplomatic relations may lead to war. The President has the further power to appoint diplomaticrepresentatives to foreign countries. We send ambassadors to the moreimportant countries, ministers-resident to most countries, envoysextraordinary or ministers-plenipotentiary to several countries, andcommissioners for special purposes. In the absence of the permanentdiplomatic representative some minor officer takes temporary charge, and is known as the _chargé d'affaires ad interim_. All of thePresident's diplomatic appointments must be confirmed by the Senate, but the President acting alone may remove any diplomatic officer. Suchremoval is at the pleasure of the President. The term of officeenjoyed by diplomatic representatives is not fixed by law, but due tothe influence of the spoils system, it often terminates when a newPresident assumes office. Besides diplomatic officers, who are charged with political duties, our foreign service comprises various grades of consuls, or commercialrepresentatives. The President and the Senate likewise choose consularofficers, but from lists of persons who have qualified under the meritsystem. Promotion and removal are determined by Civil Service rules. 518. ADMINISTRATIVE POWERS OF THE PRESIDENT. --The chiefadministrative function of the President is to carry into effect thelaws of the United States. In the discharge of this duty the Presidentis aided by a large number of subordinate officials, who, directly orindirectly, are responsible to him as head of the administration. Altogether there are more than half a million officials in theexecutive civil service of the United States. Over the appointment of these numerous officers the President has avarying measure of control. He alone appoints a few executive officials, such as his privatesecretary and the members of his Cabinet. The latter are nominallychosen by the President and the Senate, but in practice the Senateuniversally approves Cabinet appointments sent in by the President. Officers in this first group may be removed only by the President. The President and the Senate together select about 12, 000 of the moreimportant executive officers. These include diplomatic agents, Federaljudges, most military and naval officers, collectors of customs andinternal revenues, and many others. In the case of minor positions tobe filled within a congressional district, the President usuallyconfers with the Representative from that district, if thatRepresentative is of the President's party. If such Representative isnot of the President's party, the candidate for the position is reallyselected by the Senators from the proper state. [Footnote: Provided, of course, that these Senators belong to the same political party asthe President. ] The more important positions in this group are filledby the Senators from the state in which the vacancy exists, thePresident ratifying such selections as a matter of course. Officers inthis second group are removable only by the President. More than 300, 000 of the minor executive positions are now filled bythe Civil Service Commission. Persons entering office through themerit system, may be removed only for a cause which will promote theefficiency of the service. In addition to his administrative duties, the President has the powerto grant reprieves and pardons for offenses against the United States, except in the case of impeachment. A pardon fully exempts theindividual from the punishment imposed upon him by law; a reprieve, onthe other hand, is simply a temporary suspension of the execution of asentence. 519. LEGISLATIVE POWERS OF THE PRESIDENT. --Though primarily anexecutive officer, the President enjoys important powers overlegislation. The President may convene either or both houses of Congress onextraordinary occasions. For example, he may call an extra session ofCongress to consider such questions as the tariff, currency reform, ora treaty. The President has the right to send messages to Congress from time totime during his term. The recommendations contained in these messagesexert some direct influence upon legislation, and are important informulating public opinion outside of Congress. Indirectly the President exerts a considerable influence uponlegislation by bringing political pressure to bear upon theCongressional leaders of his party. He also exerts some influence uponlegislation by the use of the patronage which accompanies hisappointing power. This influence is important as breaking down thebarriers between the executive and legislative branches of government. The President may issue ordinances which have the force of law. Ascommander-in-chief of the army and navy, he may issue ordinances fortheir regulation. In pursuance of the duty to enforce the laws, thePresident may issue ordinances prescribing uniform means for theenforcement of the statutes. He may issue ordinances for specificpurposes, as, for example, Congress in 1912 authorized the Presidentto issue legislative ordinances for the government of the Canal Zone. Very important is the President's veto power. The President may vetoany bill or joint resolution passed by Congress, with the exception ofjoint resolutions proposing Constitutional amendments. But thePresident must veto the bill as a whole, and not particular items. Even though vetoed by the President, a bill may still become law bybeing passed by a two-thirds vote in each house of Congress. In spiteof these restrictions, the President exerts a considerable influenceupon legislation by the use of the veto, or by the threat that he willemploy it. Most authorities regard the veto power as a wholesome checkupon harmful and unwise legislation. QUESTIONS ON THE TEXT 1. Describe the original method of choosing the President. 2. Outline the three important changes which have taken place in theoriginal method of choosing the President. 3. Describe the present method of choosing the President. 4. What are the qualifications for Presidential electors? ForPresident? 5. What is the compensation of the President? 6. What is the nature of the Presidential Succession Act? 7. Discuss the Vice Presidency. 8. Into what four groups may the powers of the President be divided? 9. Enumerate the chief war powers of the President. 10. What is the extent of the President's treaty-making power? 11. Outline the President's duties with respect to appointing andreceiving foreign representatives. 12. What is the chief administrative function of the President? 13. Discuss the President's power to grant pardons and reprieves. 14. Explain the ordinance-issuing power of the President. 15. What is the extent of the President's veto power? REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter x. 2. Guitteau, _Government and Politics in the United States_, chapterxxv. 3. Munro, _The Government of the United States_, chapter viii. 4. Reed, _Form and Functions of American Government_, chapter xix. QUESTIONS ON THE REQUIRED READINGS 1. Outline the work of the national convention. (Reed, pages 228-229. ) 2. Describe the presidential campaign. (Reed, pages 233-234. ) 3. Why was the presidential election of 1876 disputed? (Guitteau, pages 288-289. ) 4. Describe the inaugural ceremony. (Guitteau, page 292. ) 5. What is the origin of the President's right to remove officersappointed by him? (Beard, page 193. ) 6. How did President Roosevelt once succeed in carrying out the termsof an international agreement without the consent of the Senate?(Beard, pages 197-198. ) 7. Why was the veto power originally bestowed upon the President?(Beard, page 202. ) 8. What is the rule of senatorial courtesy? (Munro, page 107. ) 9. What is the pocket veto? (Munro, page 118. ) 10. What is the President's relation to the courts? (Munro, pages 124-125. ) 11. What is the method of impeaching a President? (Reed, pages 237-238. ) TOPICS FOR INVESTIGATION AND REPORT I 1. The part played by your state in the last Presidential election. 2. Extent to which the President of the United States has made use ofthe militia of your state. 3. Compare the powers of the President of the United States with thepowers of the Governor of your state. 4. Cabinet officers, past or present, who were natives of your state. 5. List some of the offices within the bounds of your state which arefilled, directly or indirectly, by the President of the United States. II 6. The biography of some one President. (Consult an encyclopedia, standard works on American history, and special biographies. ) 7. The history of some one important Presidential election. (Consult astandard history of the United States. ) 8. The inauguration of a President. (Reinsch, _Readings on AmericanFederal Government_, pages 1-5. ) 9. The war powers of the President. (Reinsch, _Readings on AmericanFederal Government_, pages 22-32. ) 10. Federal intervention in the Chicago strike of 1894. (Reinsch, _Readings on American Federal Government_, pages 32-46. ) 11. The treaty-making power. (Reinsch, _Readings on American FederalGovernment_, pages 79-127. ) 12. The presidential power of appointment. (Taft, _Our ChiefMagistrate and His Powers_, chapter iii. ) 13. The pardoning power of the President. (Taft, _Our Chief Magistrateand His Powers_, chapter v. ) 14. The presidential veto. (Taft, _Our Chief Magistrate and HisPowers_, chapter i. ) 15. The President at work. (Reinsch, _Readings on American FederalGovernment_, pages 5-10. ) 16. The President as party leader. (Jones, _Readings on Parties andElections in the United States_, pages 205-211. ) 17. Relations of the executive and legislative branches of theNational government. (Beard, _American Government and Politics_, pages205-214. ) 18. The impeachment of President Johnson. (Consult any general work onAmerican history, or an encyclopedia. ) 19. "Why great men are not chosen Presidents. " (Bryce, _The AmericanCommonwealth_, vol. I, chapter viii. ) FOR CLASSROOM DISCUSSION 20. Would a single presidential term of six years be preferable to thepresent custom of electing a President for not more than two four-yearterms? 21. Should the President be chosen directly by the people, withoutresort to the electoral college? 22. Does Congress exercise too little control over the choice of thePresident's Cabinet? 23. Advantages and disadvantages of the veto power. (See Munro, _TheGovernment of the United States_, page 119. ) 24. Should the President be permitted to veto separate items in abill? CHAPTER XLI THE NATIONAL ADMINISTRATION 520. DEVELOPMENT OF THE FEDERAL EXECUTIVE. --The President is the headof the Federal executive, but in the performance of his numerousadministrative duties he is aided by a number of subordinate officers. No executive departments were directly established by theConstitution, but that document evidently assumes their existence, forit clearly states that the President "may require the opinion, inwriting, of the principal officer in each of the executivedepartments, upon any subject relating to the duties of theirrespective offices. " [Footnote: Article II, Section II, of theConstitution. ] President Washington was authorized by Congress to appoint threeassistants: a Secretary of State, a Secretary of the Treasury, and aSecretary of War. With the development of governmental functions, additional departments have been created. Congress established thePost Office Department in 1794, the Navy Department in 1798, theDepartment of the Interior in 1849, the Department of Justice in 1870, the Department of Agriculture in 1889, the Department of Commerce in1903, and the Department of Labor in 1913. At present, then, there areten Federal executive departments, all of them under the directcontrol of the President. 521. THE CABINET. --The heads of these ten departments are appointed bythe President, nominally with the consent of the Senate. They may beremoved only by the President, and by him at will. Neither in theConstitution nor in the statutes of Congress is there provision for aCabinet, but as the result of custom which has been formulating sinceWashington's second term the heads of the Federal executivedepartments have come to constitute, in their collective capacity, thePresident's Cabinet. Cabinet meetings are generally held twice a week, or oftener, as the President desires. The American Cabinet should not be confused with the Cabinet in GreatBritain and other European countries. In Europe the Cabinet isgenerally a parliamentary ministry, that is to say, a group of menchosen from the majority party in the legislature. These Cabinetmembers, or ministers, sit in the legislature, propose laws, anddefend their measures on the floor. They are held responsible for thenational administration. This means that when the majority of thelegislature fails to support them they are expected to resign, inorder that the opposition party may form a new Cabinet. Quite different is the American Cabinet. This body is advisory only, and the President may disregard the advice of any or all of itsmembers. The Cabinet in this country is accountable only to thePresident. The attitude of Congress toward Cabinet officers hasnothing to do with the tenure of office of these executive heads. Cabinet members do not sit in Congress; they do not, in the capacityof Cabinet officers, introduce or defend legislation; and they are notheld responsible for the administration. 522. HEADS OF DEPARTMENTS AS ADMINISTRATIVE OFFICERS. --Collectivelythe heads of the ten executive departments act as the President'sCabinet; individually they administer their respective departments. Though responsible to the President and at all times working under hisdirection, the heads of departments are allowed a wide range ofindependence. Department heads may appoint and remove at will a largenumber of minor officers in their respective departments, though oflate years this power has been considerably restricted by CivilService rules. The exact scope of the work of the various departmentsis largely denned by law. Within the limits thus set, the head of thedepartment is free to make regulations affecting the conduct ofdepartmental business. To expedite business, the work of eachdepartment is divided and subdivided among numerous bureaus, boards, and commissions, functioning under the general direction of the headof the department. 523. THE DEPARTMENT OF STATE. --Without doubt the most important of thesubordinate executive officers is the Secretary of State. His mostpressing duty is to conduct foreign affairs in accordance with thewishes of the President. In pursuance of this duty, the Secretary ofState issues instructions to diplomatic and consular officers, issuespassports to American citizens going abroad, and otherwise exercisescontrol of matters touching foreign relations. Important domestic duties devolve upon the Secretary of State. Whenthe President desires to communicate with the Governors of the severalstates, he acts through the Secretary of State. The Secretary is thecustodian of the Great Seal of the United States. It is he whooversees the publication of the Federal statutes. The Secretary ofState likewise has charge of the archives containing the originals ofall laws, treaties, and foreign correspondence. Much of the work of the Department of State is performed throughbureaus, the titles of which indicate their respective functions. Ofthese bureaus the following are the more important: the diplomaticbureau, the consular bureau, the bureau of accounts, the bureau ofindexes and archives, the bureau of rolls and library, the bureau ofappointments, and the bureau of citizenship. Each of these bureaus isheaded by a chief who is directly responsible to the Secretary ofState. In addition to these chiefs of bureaus, the Secretary is aidedby three assistant secretaries of state. 524. DEPARTMENT OF THE TREASURY. --Supervision of the national financesis the chief business of the Secretary of the Treasury. The Secretaryannually submits to Congress estimates of probable receipts andexpenditures, and supervises the collection of customs and internalrevenues. He also issues warrants for all moneys paid out of thetreasury. The scope of the department's work may be indicated by an enumerationof its chief officers. These include the Secretary himself, threeassistant secretaries, six auditors, the treasurer, the comptrollerof the treasury, the director of the mint, the register, thecomptroller of the currency, the commissioner of internal revenue, thedirector of the bureau of engraving and printing, the chief of thesecret-service department, the captain commandant of the coast guard, the superintendent of the life-saving service, the surgeon-general ofthe public health service, the supervising architect, and the farmloan commissioner. 525. THE DEPARTMENT OF WAR. --National defense is the chief concern ofthe Secretary of War. Coast fortifications, the supervision ofnavigation, and river and harbor improvements fall within the scope ofthe department. Our insular possessions are administered by theSecretary of War. It is also the duty of this officer to prepareestimates of the expenses of his department, to supervise allexpenditures for the support and transportation of the army, and totake charge of the issuance of orders for the movement of troops. Inaddition, he has charge of the Military Academy at West Point, andrecommends all appointments and promotions in the army service. Under the Secretary of War are grouped a number of administrativebureaus, each headed by an army officer detailed for a period of fouryears. Of these officers the following are the more important: theinspector-general, the quartermaster-general, the adjutant general, the surgeon-general, the chief of engineers, the chief of ordnance, the chief signal officer, the chief of the coast artillery, the judgeadvocate general, the provost-marshal general, and the chief of thebureau of insular affairs. 526. THE DEPARTMENT OF THE NAVY. --The Department of the Navy islikewise concerned with national defense. While less important thanthe Department of War, the Department of the Navy is steadily gainingin prestige. The Department is in charge of a Secretary, aided by anassistant secretary. It is the duty of the Department of the Navy tosuperintend the construction and armament of war vessels, and inaddition exercise a supervisory control over the naval service. TheNaval Academy at Annapolis and the Naval War College at Newport are incharge of the Department of the Navy. The administrative work of the Department is carried on by sevenbureaus, most of them in charge of line officers of the Navy, workingdirectly under the Secretary. These bureaus are as follows: the bureauof navigation, the bureau of ordnance, the bureau of yards and docks, the bureau of supplies and accounts, the bureau of steam engineering, the bureau of medicine and surgery, and the bureau of construction andrepairs. 527. THE DEPARTMENT OF JUSTICE. --This Department is headed by theAttorney-General, who acts as the chief legal adviser of the Nationalgovernment. It is his duty to represent the government in all cases towhich the United States is a party. It is he who conducts proceedingsagainst corporations or individuals who violate the Federal laws. General supervision over all Federal district attorneys and marshalsis exercised by the Attorney-General. This officer likewise examinesthe titles of lands which the government intends to purchase. TheAttorney-General has a supervisory charge of the penal and reformatoryinstitutions which are Federal in character. Applications for pardonsby the President are investigated by the Attorney-General. Stillanother of his duties is to superintend the codification of theFederal criminal laws. In these various duties the Attorney-General is assisted by an under-officer known as the solicitor-general. 528. THE POST OFFICE DEPARTMENT. --This Department, headed by thePostmaster-General, has general charge of the postal service. ThePostmaster-General awards contracts for the transportation of themails, and directs the management of the domestic and foreign mailservice. The handling of money orders, the parcels post system, andthe postal savings banks come under the control of the Postmaster-General. Of great importance is the power of this officer to bar fromthe mails publications which are fraudulent or otherwise obnoxious. Working under the Postmaster-General are four assistant postmasters-general, each in general charge of a group of services within thedepartment. 529. DEPARTMENT OF THE INTERIOR. --Aided by two assistant secretaries, the Secretary of the Interior performs a number of importantfunctions. He has charge of all public lands, including nationalparks. The handling of Indian affairs constitutes one of his duties. The territories of Alaska and Hawaii come under the direct supervisionof this department. Many miscellaneous functions are performed by the various bureauswithin the department. Patents, pensions, and the geological surveycome within the purview of the department. The Secretary of theInterior has charge of the distribution of government appropriationsto various educational institutions. A general supervision over anumber of charitable institutions within the District of Columbia isalso exercised by this officer. 530. DEPARTMENT OF AGRICULTURE. --All matters pertaining to agriculturein the widest sense are the concern of the Department of Agriculture. Under the direction of the Secretary the Department issues a largenumber of scientific and technical publications, including theAgricultural Yearbook, the series of Farmers' Bulletins, the MonthlyWeather Review, and the Crop Reporter. Quarantine stations forimported cattle, and the inspection of domestic meats and importedfood products are concerns of the various bureaus within theDepartment. Of great importance is the work of the weather bureau insending out storm, flood, frost, and drought warnings. An increasingly important phase of the Department's work is the ForestService, the work of which has been described in Chapter XXX. Animportant bureau is the bureau of animal industry, which combatsanimal diseases and gives advice concerning the best breeds of poultryand cattle. The bureau of plant industry ransacks the world for newcrops suitable for our soils, and gives fruit-growers and farmersadvice concerning plant parasites. Insect pests are the concern of theentomology division. Additional functions of the Department ofAgriculture may be indicated by an enumeration of some of the moreimportant of its remaining bureaus and divisions. These include thebureau of chemistry, the bureau of soils, the bureau of statistics, the bureau of crop estimates, the office of public roads and ruralengineering, the Federal horticultural board, and the bureau ofmarkets. 531. THE DEPARTMENT OF COMMERCE. --In 1913 what for ten years had beenknown as the Department of Commerce and Labor was divided into twoseparate departments, a Department of Commerce and a Department ofLabor. The chief duty of the Department of Commerce is to foster the foreignand domestic commerce of the United States. To promote our mining, manufacturing and fishing industries, and to develop ourtransportation facilities are, therefore, among the aims of thisdepartment. The census, the coast survey and lighthouses, andsteamboat inspection are concerns of the Department of Commerce. Thescope of the Department, which is increasing rapidly, may be indicatedby an enumeration of the more important bureaus grouped within it. These include the bureau of foreign and domestic commerce, the bureauof census, the bureau of lighthouses, the bureau of coast and geodeticsurvey, the steamboat inspection service, the bureau of navigation, the bureau of standards, and the bureau of fisheries. 532. THE DEPARTMENT OF LABOR. --Though at present the functions of theDepartment of Labor are fewer than those of the other Departments, they are being rapidly expanded by the extension of governmentinterest in industry. The Department is concerned with practically allmatters which affect labor conditions in the United States. The Department of Labor collects and publishes information upon allsubjects connected with labor and capital, the hours and wages oflabor, and methods of improving the condition of the working classes. It seeks to encourage industrial good will, and to adjust labordisputes peaceably. An important bureau within the Department is thebureau of immigration, which, under the direction of the commissioner-general of immigration, is concerned with the administration of ourimmigration laws. The bureau of naturalization keeps a record ofimmigrants, and supervises their naturalization. Of growing importanceis the children's bureau, which investigates matters having to do withchild labor, infant mortality, orphanage, and the work of the juvenilecourts. 533. MISCELLANEOUS BOARDS AND COMMISSIONS. --In addition to theexecutive departments which have been briefly discussed, the Federaladministration includes many independent boards, bureaus, andcommissions which perform duties not assigned to any of the tendepartments. These agencies have been established from time to timeunder the authority of Congressional statutes. The chiefs of thebureaus and the members of the boards and commissions are appointed bythe President and the Senate, most of them for a term ranging betweensix and twelve years. These officials are largely experts, who happilyare sufficiently exempt from the spoils system to stand a fair chanceof surviving a change of administration. Among the more important of these boards and commissions are thefollowing: The Federal Reserve Board, the Federal Farm Loan Board, theFederal Board for Vocational Education, the Federal Trade Commission, the Interstate Commerce Commission, the United States TariffCommission, and the Civil Service Commission. The nature and functionsof most of these administrative agencies have been discussed elsewherein the text, and need not be gone into here. QUESTIONS ON THE TEXT 1. Trace briefly the development of the Federal executive departments. 2. What is the nature of the President's Cabinet? 3. Contrast the American with the European cabinet. 4. What function do the heads of departments perform individually? 5. What are the chief functions of the Secretary of State? 6. Enumerate the more important officers working under the directionof the Secretary of the Treasury. 7. Describe the work of the Department of War. 8. What are the chief functions of the Secretary of the Navy? 9. What are the chief duties of the Attorney-General? 10. Describe the work of the Post Office Department. 11. What types of work are the concern of the Department of theInterior? 12. Discuss briefly the work of the Department of Agriculture. 13. What is the function of the Department of Commerce? Of theDepartment of Labor? 14. Name some of the more important boards and commissions which areindependent of the ten executive departments. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter ii. 2. Guitteau, _Government and Politics in the United States_, chapterxxvii. 3. Munro, _The Government of the United States_, chapter ix. 4. Reed, _Form and Functions of American Government_, chapter xxiv. QUESTIONS ON THE REQUIRED READINGS 1. Outline the duties which are common to the heads of all of theexecutive departments. (Beard, pages 216-218. ) 2. Contrast the National administration with the state administration. (Reed, pages 286-287. ) 3. What is the purpose of the Library of Congress? (Reed, pages 298-299. ) 4. Describe the work of the General Land Office under the Departmentof the Interior. (Guitteau, pages 318-319. ) 5. What is the function of the Commissioner of Patents? (Guitteau, page 319. ) 6. What are the duties of the Commissioner of Education, under theSecretary of the Interior? (Guitteau, page 320. ) 7. Name some of the more important boards and commissions createdduring the World War. (Guitteau, pages 325-326. ) 8. Compare our Department of the Interior with the Department of theInterior in France. (Munro, pages 136-137. ) 9. What is meant by the statement that the National administration isdecentralized? (Munro, page 142. ) 10. Describe briefly the work of the Civil Service Commission. (Beard, pages 222-224. ) TOPICS FOR INVESTIGATION AND REPORT 1. Membership of the President's Cabinet at the present time. 2. The biography of some one member of the President's Cabinet. 3. The work of some bureau or department in the Nationaladministration. (Reports on the work of the various departments may besecured by writing to the respective departments at Washington, D. C. See also Fairlie, _The National Administration of the United Statesof America_. ) 4. Compare the National administration with the administrativedepartment in your state, with respect to (a) Scope of work (b) Centralization (c) Efficiency (d) Control by the people. II 5. Evolution of the executive. (Gettell, _Introduction to PoliticalScience_, chapter xix. ) 6. Functions of the Federal executive. (Kimball, _The NationalGovernment of the United States_, chapter x. ) 7. A history of the President's Cabinet. (Consult an encyclopedia. ) 8. Membership of the Cabinet. (Fairlie, _The National Administrationof the United States_, chapter iv. ) 9. An Englishman's view of the American Cabinet. (Bryce, _The AmericanCommonwealth_, vol. I, chapter ix. ) 10. The Department of State. (Fairlie, _The National Administration ofthe United States_, chapter vi. ) 11. The Department of the Treasury. (Fairlie, _The NationalAdministration of the United States_, chapters vii and viii. ) 12. The Department of War. (Fairlie, _The National Administration ofthe United States_, chapter ix. ) 13. The Department of the Navy. (Fairlie, _The National Administrationof the United States_, chapter x. ) 14. The Department of Justice. (Fairlie, _The National Administrationof the United States_, chapter xi. ) 15. The Post Office Department. (Fairlie, _The National Administrationof the United States_, chapter xii. ) 16. The Department of the Interior. (Fairlie, _The NationalAdministration of the United States_, chapters xiii and xiv. ) 17. The Department of Agriculture. (Fairlie, _The NationalAdministration of the United States_, chapter xv. ) 18. The Department of Commerce. (Fairlie, _The National Administrationof the United States_, chapter xvi. ) 19. The Department of Labor. (Fairlie, _The National Administration ofthe United States_, chapter xvi. ) FOR CLASSROOM DISCUSSION 20. The American Cabinet compared with the English Cabinet, (SeeMunro, _The Government of the United States_, pages 143-145. ) 21. Should the President be obliged to act in accordance with thewishes of a majority of his Cabinet? 22. To what extent should promotion in the civil service be on thebasis of length of service? To what extent should promotion bedetermined by periodic examinations? 23. Do you favor the creation of a new executive department, to becalled the Department of Public Welfare? CHAPTER XLII NATURE AND POWERS OF CONGRESS 534. CONGRESS CONSISTS OF TWO HOUSES. --The National legislature, orCongress, consists of a Senate or upper chamber, and a House ofRepresentatives or lower chamber. Several factors are responsible for this division of Congress into twohouses. Undoubtedly the framers of the Constitution were influenced bythe fact that the British Parliament and nearly all of the coloniallegislatures consisted of two houses. A second factor is that in theopinion of the Fathers, a two-chambered legislature would allow eachhouse to act as a check upon the other. Finally, the creation of atwo-chambered legislature was necessary in order to reconcile theconflicting desires of the large and the small states. During theConstitutional Convention two opposing factions were brought togetherby the creation of a two-chambered legislature, in the upper house ofwhich the states were to be represented equally, and in the lowerhouse of which representation was to be on the basis of population. A. THE SENATE 535. TERM AND QUALIFICATIONS OF SENATORS. --Two Senators are chosenfrom each state, regardless of population. The senatorial term is sixyears. In order to make the Senate a permanent body, membership is soarranged that one third of the Senators retire every two years. TheFederal Constitution provides that Senators must be at least thirtyyears of age. In addition, a Senator must have been nine years acitizen of the United States, and he must be an inhabitant of thestate from which he is chosen. The Senate alone is judge of thequalifications of its members. With respect to the Senate, two disqualifications are imposed by theFederal Constitution. No one holding a Federal office may stand forelection as Senator. Nor may any person become a Senator who has takenpart in a rebellion against the United States after having taken anoath as a government officer to support the Constitution. 536. THE ELECTION OF SENATORS. --Previous to 1913 Senators were chosenby the various state legislatures, according to the provisions of theFederal Constitution. [Footnote: Article I, Section III. ] This methodproved unsatisfactory. Demoralizing political battles often took placein the state legislatures in the effort to select the states' Senatorsto Congress. Sometimes, even after a long struggle, no candidate wasable to secure a majority, and a deadlock occurred. Thus, on the onehand, a state might be deprived of representation in the Senate forweeks or months, while, on the other hand, the attention of thelegislature was so distracted by the senatorial struggle that purelystate interests suffered. As the result of a long agitation growingout of these evils, the Federal Constitution was amended (1913) topermit the direct election of Senators. Since 1913, then, any person may vote directly for Senator who, underthe laws of his state, is qualified to vote for members of the morenumerous branch of the state legislature. When, for any reason, avacancy occurs in the representation of any state in the Senate, theGovernor of the state issues a writ of election to fill such vacancy. Provided the state legislature grants the authority, the Governor alsomay appoint some person to serve as Senator until the vacancy isfilled by popular election. Senators are generally reflected, and atthe present time the average term of service is not six, but abouttwelve years. 537. PRIVILEGES AND IMMUNITIES OF SENATORS. --By the terms of theConstitution, Senators are paid out of the national treasury an amountto be determined by statute. At present both Senators and members ofthe House of Representatives receive $7500 a year, plus an allowancefor travelling expenses, clerk hire, and stationery. Except in case oftreason or breach of the peace, Senators and Representatives areimmune to arrest during attendance at the sessions of their respectivehouses, and in going to and returning from the same. Both Senators andRepresentatives likewise enjoy freedom of speech and debate in theirrespective houses. In either chamber only the house itself may callmembers to account for their statements during the legislativesession. No member of Congress may be prosecuted in the courts forlibel or slander on account of statements made in Congress, or for theofficial publication of what he has said during the legislativesession. B. THE HOUSE or REPRESENTATIVES 538. MEMBERSHIP OF THE HOUSE. --Since the Senate is composed of twoSenators from each state, its membership has been relatively stable. For a number of years there have been 96 Senators, two for each of theforty-eight states of the Union. The membership of the House of Representatives, on the other hand, issteadily increasing, because based upon population. The number ofRepresentatives to which any state is entitled depends upon itspopulation as ascertained every ten years by a Federal census. Aftereach census Congress determines the number of Representatives of whichthe House shall consist. The population of the United States is thendivided by this number, and the quotient is taken as the ratio ofrepresentation. The population of each state is then divided by thisratio to discover the number of Representatives to which it isentitled. As a single exception to this rule, the Constitutionprovides that each state shall have at least one Representativeregardless of population. Thus Nevada, Arizona, Wyoming, and Delawareare entitled to one Representative, whereas according to the aboverule they would now be denied representation. The present membership of the House of Representatives is 435. 539. WHO MAY VOTE FOR REPRESENTATIVES. --The Federal Constitutionprovides that members of the House of Representatives shall be chosenby persons who, in their respective states, are qualified to vote formembers of the more numerous branch of the state legislature. Mostmale and female citizens over twenty-one years of age may vote formembers of this more numerous branch, and hence for Representatives toCongress. In a number of states, however, educational, property andother qualifications are imposed. Certain types of criminals, theinsane, and the otherwise defective are regularly excluded. [Footnote:For a fuller discussion of the suffrage, see Chapter XXXIII. ] 540. QUALIFICATIONS OF REPRESENTATIVES. --The Federal Constitutiondeclares that a Representative must be at least twenty-five years ofage. He must have been a citizen for at least seven years, and at thetime of his candidacy must also be an inhabitant of the state fromwhich he is chosen. The House itself determines whether or not thesequalifications have been met. No state may add to the constitutionalqualifications, but through the force of custom a Representative isalmost always a resident of the district which he is chosen torepresent. 541. ELECTION OF REPRESENTATIVES. --The Federal Constitution permitsthe legislatures of the several states to regulate the time, mannerand place of elections for its Representatives to Congress. However, the Constitution reserves to Congress the right to alterthese regulations at its discretion. This right has been exercisedseveral times. Congressional statute has provided that Representativesshall be elected on the Tuesday following the first Monday in Novemberof even-numbered years, and that the election shall be by written orprinted ballot. It is also in accordance with Congressional statutethat Representatives are selected on the district plan, oneRepresentative being chosen from each Congressional district in thestate. Congress has furthermore provided that these districts shall beof as nearly equal population as possible, and that they shall becomposed of "compact and contiguous territory. " 542. THE CONGRESSIONAL DISTRICT. --Subject to the above limitations thelegislature of each state may determine the boundaries of itsCongressional districts. The state legislature finds it necessary toredistrict the state if the decennial census shows that the populationof the state has increased unequally in various sections, or in casethe apportionment act of Congress changes the state's representation. In many cases states have redistricted their territory forillegitimate reasons. The Federal provision with reference tocontiguous territory has been loosely interpreted: in many casesterritory is held to be contiguous if it touches the district at anypoint. The requirement that districts shall be of nearly equalpopulation has often been disregarded altogether. Since the statelegislature is controlled by the political party having a majority, the dominant party can arrange the district lines so as to secure aparty majority in the greatest possible number of districts. This isdone by concentrating the opposition votes in a few districts whichwould be hostile under any circumstances, and so grouping theremaining votes as to insure for the dominant party a majority innumerous districts. 543. GERRYMANDERING. --The result of this illegitimate redistrictinghas been to create districts of great irregularity. In 1812, whenElbridge Gerry was Governor of Massachusetts, the Republican party wasin control of the state legislature. In districting the state so as towin for themselves as many districts as possible, the Republicans gaveone of the Congressional districts a dragon-like appearance. To thesuggestion of a famous painter that this looked like a salamander, alocal wit replied that it was more nearly a Gerrymander. The term"gerrymander" has since continued to be used to designate this type ofillegitimate redistricting. [Footnote: For the relation ofgerrymandering to the problem of minority representation, see ChapterXXXV. ] 544. TERM OF REPRESENTATIVES. --Representatives are elected for twoyears, the legal term commencing on the 4th of March following theelection. Except in the case of a special session, the actual serviceof Representatives does not commence until the first Monday inDecember, thirteen months after election. Members are frequentlyreëlected, the average term being about four years. When for anyreason a vacancy occurs in the representation from any state, theGovernor may, on the authority of the Federal Constitution, issue awrit of election to fill the vacancy. A special election is then heldin the district in which the vacancy has occurred, and theRepresentative so chosen serves for the remainder of theterm. [Footnote: The privileges and immunities of Representatives aresimilar to those of Senators. See Section 537 of this chapter. ] C. THE POWERS OF CONGRESS 545. SPECIAL POWERS OF THE SENATE. --Of the three powers exercisedexclusively by the Senate, the power to approve treaties is one of themost important. All treaties negotiated by the President must beapproved by a two-thirds vote of the Senate before becoming law. Thetreaty may be approved or rejected as a whole, or it may be rejectedin part, and additional articles recommended as amendments. If changedin form or content by the Senate the treaty does not become law untilboth the President and the foreign power have assented to theamendment or change. In order to become valid, a large number of Presidential appointmentsmust receive the approval of the Senate. [Footnote: See Chapter XL, Section 518. ] The Senate exercises a special judicial function in that it may sit asa court of impeachment for the trial of persons whom the House ofRepresentatives has formally charged with treason, bribery, or otherhigh crimes and misdemeanors. Excluding military and naval officers, who are tried by court-martial, and excluding also members ofCongress, who are subject only to the rules of their respectivehouses, all Federal officers are subject to impeachment. Impeachmentrequires a two-thirds vote of the Senators present. Removal fromoffice and disqualification to hold any office under the United Statesis the heaviest penalty which can be imposed upon an impeachedofficial. 546. SPECIAL POWERS OF THE HOUSE. --The House likewise enjoys threespecial powers. One of these is the right to elect a President of the United States incase no candidate has a majority of the electoral votes. This hashappened only twice, in 1800, and again in 1824. The Federal Constitution provides that all revenue bills mustoriginate in the lower house. However, the Senate has come to sharethis power through its power to amend such bills. The House of Representatives has the sole power to prefer charges ofimpeachment, that is to say, to present what may be called theindictment against the accused official. The case is then tried beforethe Senate, the House appointing a committee of its own members to actas the prosecuting agency. 547. GENERAL SURVEY OF THE POWERS OF CONGRESS. --The powers ofCongress, _i. E. _ the two houses acting together, are of two kinds:First, express powers, by which is meant those specifically enumeratedin the Federal Constitution; and second, implied powers, by which ismeant those which are incident to express powers and necessary totheir execution. The foundation of the doctrine of implied powers isthe constitutional clause [Footnote: Article I, Section VIII, of theConstitution. ] which authorizes Congress to make all laws "necessaryand proper" for carrying out the powers granted it by the FederalConstitution. Grouping express and implied powers together, the more importantpowers of Congress may be summarized as follows: _Revenue and expenditures_. Congress has the power to lay and collecttaxes, duties, imports, and excises, and to appropriate money in order"to pay the debts and provide for the common defense and generalwelfare of the United States. " But indirect taxes must be uniformthroughout the United States, and all direct taxes, except incometaxes, must be apportioned among the states according to population. Afurther limitation is that Congress may not tax exports from anystate, nor levy upon the "necessary instrumentalities" of any stategovernment. _National defense_. Here the powers of Congress are practicallyunlimited, except by the constitutional provisions that the Presidentshall be commander-in-chief, and that military appropriations shallnot be made for more than two years. Congress can raise and supportarmies, create and maintain a navy, and provide for the organizationand use of the state militia. Congress may also declare war, and makerules concerning captures on land and sea. _Foreign relations_. Congress as a body has little direct control overforeign relations, though the Senate shares the treaty-making powerwith the President. But Congress has the power to create diplomaticand consular posts, as well as "to define and punish piracies andfelonies committed on the high seas, and offences against the law ofnations. " Congress also exercises control over immigration andnaturalization. _Economic interests_. Congress may regulate commerce with foreigncountries, among the several states, and with the Indian tribes. Theexclusive power to coin money, and otherwise control the monetarysystem, is vested in Congress. Congress may make uniform laws onbankruptcy throughout the United States, and fix the standards ofweights and measures. The establishment of post offices and postroads, and the protection of authors and inventors through legislationon patents and copyrights, are also functions of Congress. _Territories_. Congress has the power to dispose of, and make allneedful rules and regulations respecting, the territory or otherproperty belonging to the United States. Congress likewise exercisesexclusive control over the District of Columbia, and over all placespurchased by the Federal government for the erection of forts, arsenals, and similar buildings. Congress also has the right todetermine the admission to the Union of new states, and "to dispose ofand make all needful rules and regulations respecting the territory orother property belonging to the United States. " _Crime_. In criminal matters the power of Congress is slight. Forexample, it cannot say what constitutes treason, since that crime isdefined by the Constitution. However, Congress may provide for thepunishment of counterfeiters and persons committing crimes on the highseas or offences against international law. It may also define certaincrimes against Federal law, and prescribe penalties therefor. _Control over the judiciary_. The judiciary is an independent branchof government, but Congress may determine the number of Supreme Courtjudges, fix their salaries within certain limits, and define theirappellate jurisdiction. Congress may also determine the jurisdiction, and define the procedure, of the inferior Federal courts. _Implied powers_. Last among the powers of Congress is the authoritygranted to it by the Constitution to make all laws which shall bedeemed necessary and proper for carrying into execution the powersexpressly granted to Congress by the Constitution. It is under theauthority of this clause, that the implied powers of Congress havebeen so greatly expanded. QUESTIONS ON THE TEXT 1. What influences are responsible for the fact that Congress is atwo-chambered body? 2. Discuss the term and qualifications of Senators. 3. How were Senators elected prior to 1913? How are they elected atthe present time? 4. What are the chief privileges and immunities of Senators? 5. Discuss the membership of the House of Representatives. 6. What is the nature of the Congressional district? 7. What are the qualifications for Representatives? 8. Who may vote for Representatives? 9. What is gerrymandering? 10. What three powers are exercised exclusively by the Senate? 11. What are the special powers of the House? 12. Under what two heads may the general powers of Congress beclassified? 13. Outline briefly the chief powers of Congress. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter xiii. 2. Guitteau, _Government and Politics in the United States_, chaptersxxii and xxiii. 3. Munro, _The Government of the United States_, chapter xiv. 4. Reed, _Form and Functions of American Government_, chapter xxi. QUESTIONS ON THE REQUIRED READINGS 1. What was the Connecticut compromise? (Guitteau, pages 248-249. ) 2. Why does the Constitution provide that one third of the Senateshall retire every second year? (Reed, page 255. ) 3. What criticism has been brought against the principle of the equalrepresentation of states in the Senate? (Guitteau, page 249. ) 4. Compare the growth of the Senate with the growth of the House ofRepresentatives. (Reed, page 258. ) 5. What is the relative position of the two houses of Congress? (Reed, pages 257-258. ) 6. What is the right to "frank"? (Reed, page 258. ) 7. What are the "supplementary" powers of Congress? (Munro, page 217. ) 8. What are the powers of Congress with respect to weights andmeasures? (Beard, page 259. ) 9. What was Jefferson's attitude toward the powers of Congress?(Munro, page 209. ) 10. What is the scope of the implied powers of Congress? (Munro, page214. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Congressional districts in your state. 2. The biography of one of the Senators representing your state inCongress. 3. Make a study of your Representatives in Congress, with respect totheir age, length of service, political principles, and attitudetoward such national questions as the tariff, military defense andtaxation. 4. A brief comparison of Congress with your state legislature. II 5. Place of the Senate in our National government. (Reinsch, _Readingson American Federal Government_, pages 127-134. ) 6. The House of Representatives in the United States compared with theBritish House of Commons. (Kaye, _Readings in Civil Government_, pages149-155. ) 7. Gerrymandering. (Beard, _Readings in American Government andPolitics_, pages 219-220; see any other standard text on AmericanGovernment. ) 8. The immunities of Congressmen. (Cleveland, _Organized Democracy_, chapter xxvii. ) 9. Relation of the two houses of Congress. (Bryce, _The AmericanCommonwealth_, vol. I, chapter xviii. ) 10. The Senate as a judicial body. (Bryce, _The AmericanCommonwealth_, vol. I, chapter x. ) 11. Constitutional limitations on the powers of Congress. (Munro, _TheGovernment of the United States_, chapter xx. ) 12. Relation of Congress to the President. (Bryce, _The AmericanCommonwealth_, vol. I, chapter xx. ) 13. The war powers of Congress. (Any standard text on Americangovernment. ) 14. The taxing power of Congress. (Any standard text on Americangovernment. ) 15. Other financial powers of Congress. (Any standard text on Americangovernment. ) 16. The power to regulate commerce. (Any standard text on Americangovernment. An excellent reference is Munro, _The Government of theUnited States_, chapter xvii. ) 17. The postal powers of Congress. (Young, _The New AmericanGovernment and its Work_, chapter xiii. ) 18. The control of Congress over territories. (Kimball, _The NationalGovernment of the United States_, chapter xxii. See also any otherstandard work on American government. ) FOR CLASSROOM DISCUSSION 19. Direct versus indirect election of Senators. 20. To what extent, if to any, should Congressmen consider the needsof their local district as of more importance than the needs of thenation as a whole? 21. Should the interval between the election of Representatives andthe meeting of Congress be shortened? 22. Should we retain equal representation of states in the Senate, orshould this principle be discarded as "undemocratic"? CHAPTER XLIII CONGRESS IN ACTION A. ORGANIZATION OF CONGRESS 548. CONGRESSIONAL SESSIONS. --The Federal Constitution requiresCongress to assemble at least once a year, and Congress has providedthat the date of meeting shall be the first Monday in December. Inaddition to such special sessions as may be called either by thePresident or by Congress itself, there are two regular sessions. Oneof these is the long session, from December of each odd year untilCongress adjourns, generally sometime during the following summer. Theother is the short session, beginning when Congress assembles inDecember of each even year, and ending at noon on the 4th of Marchfollowing. The two houses of Congress jointly fix the time for adjournment, butin case they cannot agree upon this point, the President has the rightto adjourn them to such time as he thinks fit. During thecongressional session, neither house may, without the consent of theother, adjourn for more than three days, nor to any other place thanthat in which the two houses are sitting. Since 1800 congressionalsessions have regularly been held at Washington, D. C. , the Nationalcapital. 549. INTERNAL ORGANIZATION. --Each house of Congress has the right todetermine its own rule of practice, punish members for disorderlyconduct, and, by a two-thirds vote, expel a member. Members guilty ofacts of violence or abusive language may be punished by a vote ofcensure, or may be obliged to apologize to the house. For thecommission of a grave offense, a Congressman may be expelled from thehouse to which he was elected. The Constitution requires that "each house shall keep a journal ofits proceedings, and from time to time publish the same, exceptingsuch parts as may in their judgment require secrecy; and the yeas andnays of the members of either house shall, at the desire of one fifthof those present, be entered upon the journal. " The object of this isto secure a permanent record of legislative action, as well aspublicity of proceedings. The vote by yeas and nays fixesresponsibility for his vote upon each member by making it a matter ofpublic record. The _Congressional Record_, an official account ofCongressional debates and proceedings, appears daily duringCongressional sessions. This is supposedly a verbatim report of whatis said in each house, but as a matter of fact members are allowed toedit and revise their remarks before these are printed. In the case ofthe House, many of the published speeches have never been delivered atall. 550. THE OFFICERS OF CONGRESS. --In the House of Representatives thechief officer is the Speaker, or presiding officer. The Speaker ischosen from the membership of the House by that body itself. As willbe pointed out shortly, this officer is an important personage. In the Senate the Vice President of the United States acts as thepresiding officer. In the absence of the Vice President, or in casethat officer succeeds to the Presidency, the Senate itself chooses apresident _pro tempore_ to occupy the chair. The presiding officer ofthe Senate is much less powerful than the Speaker of the House, indeedhe is little more than a chairman or moderator. There are a number of additional officers of Congress, who are chosenby the respective houses from outside their own membership. Theseofficers include a clerk, who in the Senate is called the secretary;the door-keeper; the sergeant-at-arms; the postmaster; and thechaplain. Nominally these officers are chosen by each house, but as amatter of practice the choice is made by the caucus of the majorityparty, which is held a few days before the organization of each house. 551. THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. --A few days beforethe organization of the House, the caucus of the majority partysettles upon its choice for Speaker. The candidate chosen invariablyreceives the solid vote of his party in the House, since it is a ruleof the caucus that party members who take part in its discussions mustabide by its decisions. As chairman of the House, the Speaker performs the customary duties ofa presiding officer. He opens and closes the sittings of the House, maintains order, and decides questions of parliamentary law. TheSpeaker acts as the official representative of the House in itscollective capacity, and authenticates all official proceedings by hissignature. It is he who announces the order of business, states thequestion, and announces the vote. He also has the right to appoint thechairman of the committee of the whole. The Speaker takes part indebate and may also vote. 552. POWER OF THE SPEAKER OVER LEGISLATION. --In addition to performingthe customary duties of a presiding officer, the Speaker possessesimportant powers over legislation. The imperfect organization of theHouse, and its lack of effective leadership, as well as the vastamount of business coming before it, have tended to centralize much ofthe legislative power of the House in the hands of this officer. The Speaker of the House has the power to determine to which committeea bill shall be referred. Thus he may determine the fate of a measureby sending it to a committee which he knows to be hostile to the bill, or to a friendly committee, just as he likes. It is the Speaker who decides when a member is entitled to the floor, and no motion or speech can be made except by a member who has beenduly recognized by the chair. There are a number of unwritten rules inthis regard, but in the last analysis the Speaker may recognize onlypersons whom he desires to have speak. Thus Congressmen who are not ofthe Speaker's party may be kept from making themselves heard uponimportant measures. When a bill is before the House, the chairman ofthe committee in charge of the measure usually hands the Speaker alist of Congressmen who are to be heard upon the floor. By recognizingonly those whose names appear on this list, the Speaker may confinethe discussion to members who are favored by himself and his party. The Speaker has the power to decide points of order, and otherwise todeal with such obstructions to legislative business as thefilibustering tactics of the minority party. Often this power isexercised in connection with the quorum. The quorum or number ofmembers who must be present in order that business may be transacted, is fixed by the Constitution as a majority of each house. Formerly itwas the habit of minority members to remain silent at roll-call, sothat if several members of the majority party were absent, it might bethat no quorum would appear. In such a case legislative business wouldbe blocked. But in 1890 Speaker Reed adopted the practice, sincebecome invariable, of counting as present members actually in theHouse, whether or not they respond to their names at roll-call. TheSpeaker also checks filibustering by disregarding all motions andappeals which he thinks are made simply for the purpose of obstructinglegislative business. 553. THE COMMITTEE ON RULES. --Of great importance in the House is thecommittee on rules. This committee has the power to decide upon theorder for considering bills, and to determine the length of debates. It also determines the time when the vote shall be taken. This it doesby "reporting a rule, " that is to say, by presenting a report as tothe time and conditions under which the House shall consider ameasure. This report takes precedence over all other business. Thusthe fate of a bill may be determined by the committee on rules. Previous to 1910 this committee consisted of the Speaker, and twomajority and two minority members named by the Speaker. But in the61st Congress, there occurred what has been called the "revolution of1910. " This "revolution" opposed Speaker Cannon's policy of using forpersonal and partisan purposes his power to appoint the other membersof the committee on rules. As the result of a violent agitation theHouse finally placed marked restrictions upon the Speaker's controlover the committee. The membership of the committee on rules wasincreased, first to ten, and then to twelve. Of these twelve memberseight belong to the majority party and four are minority members. Thecommittee is no longer chosen by the Speaker, but is selected by theHouse itself. The Speaker is even excluded from membership in thecommittee. 554. THE CONGRESSIONAL COMMITTEE SYSTEM. [Footnote: For a discussionof the advantages and disadvantages of the committee system seeChapter XXXVI. ]--In both houses of Congress the assembly is dividedinto a number of committees, each of which is charged with theconsideration of legislation dealing with particular subjects. Previous to 1911 the Speaker appointed all House committees, but sincethat date all committees have been chosen by the House as a body, though in practice the decisions are made by the caucuses of themajority and minority parties, held just before the organization ofthe House. Similarly, the Senate chooses its own committees from listsdrawn up by the caucuses of the two political parties. In eitherhouse, the minority party has such representation upon committees asthe majority party chooses to allow. There are in the House more thanfifty of these committees, while in the Senate the number is evenlarger. In the House of Representatives the more important committeesare those on rules, ways and means, appropriations, judiciary, bankingand currency, interstate and foreign commerce, and rivers and harbors. B. THE MAKING OF A FEDERAL LAW [Footnote: A more detailed account ofthe law-making process may be found in Reed, _Form and Functions ofAmerican Government_, Chapter XXII. ] 555. HOW LEGISLATION IS INITIATED. --The course of congressionallegislation may be illustrated by following a bill through the Houseof Representatives. Any member of the House may introduce a bill by filing it with theclerk. The title of the bill is printed in the _Journal and Record_, this constituting a first "reading. " The bill is then delivered to theSpeaker, who refers it to the proper committee. Once a bill hasbeen passed to the committee its fate rests largely with that body. The committee may confer with certain administrative officers, listento individuals interested in the subject, summon and examine otherpersons, and then reach a decision upon the bill. The committee mayamend the bill as it pleases. If unfavorable to the measure, thecommittee may report it adversely, or too late for legislative action. Indeed, it may even fail to report it at all. Theoretically the Housemay overrule the committee's decision on a bill, but so generally arethe committee's recommendations followed by the House that the adverseaction of the committee virtually kills a bill. 556. THE BILL IS REPORTED TO THE HOUSE. --Let us suppose that thecommittee reports the bill back to the House. The measure is thenplaced upon a calendar and here awaits its turn, unless the committeeon rules sees fit to direct the immediate attention of the House toit. The second reading is an actual and full reading of the bill forthe purpose of allowing amendments to be offered. After the secondreading, which may result in the adoption of amendments, the Speakerputs the motion, "Shall the bill be engrossed and read a third time?"Debate is then in order. If the vote which follows is in theaffirmative, the bill is read a third time, but only by title. Thequestion of passage is put by the Speaker immediately after the thirdreading. 557. DEBATE UPON THE BILL. --Debate in the House of Representatives haslittle influence upon most bills, the fate of a measure beingpractically determined by the committee considering it. Most speechesare frankly intended for political purposes, and for circulation inthe Congressional Record, rather than as actual and positiveinfluences upon the bill which is being discussed. Debate in the House is limited in several ways. No member may spendmore than an hour in debate upon any question, except the member incharge of the bill. This member may have an additional hour at theclose. In the committee of the whole, speeches are limited to fiveminutes. No member may speak more than once on the same subjectwithout special permission from the chair. The single exception tothis rule is the member who has introduced the bill. Before debatebegins, the chairman of the committee in charge of the bill arranges, in consultation with the Speaker, a list of members who are to beheard upon the bill. No other members are ordinarily recognized by theSpeaker in the ensuing debate. After a certain amount of discussion the member in charge of the billwill generally move the previous question in order to cut short thedebate and bring the House to a direct vote upon the question. 558. THE VOTE. --In the House voting may be by any one of threemethods. Voting may be by "sound of voices. " In this case the Speakercalls in turn for the "ayes" and "noes, " and decides by the volume ofthe sound whether the motion has been carried or lost. This is usuallythe method first employed, but either of the other two methods may bedemanded before or after voting by sound of voices has been employed. Voting may be by tellers. When this is decided upon the members passbetween tellers appointed by the Speaker--those in the affirmativefirst--and are counted. This method requires the demand of one fifthof a quorum. Voting may be by yeas and nays. In this event, the clerk calls theroll and each member, as his name is reached, answers "aye" or "no, "the vote then being recorded. The Constitution provides that one fifthof the members present may demand the yeas and nays. Since it takes along time to call the roll of the House, demands for roll-calls arefrequently employed by minorities with the intent of obstructinglegislative business. 559. THE BILL GOES TO THE SENATE. --A bill defeated in the House neverreaches the Senate, of course. But if it receives a majority vote in the House, it is engrossed andsent to the Senate. Here the bill goes through practically the samestages as in the House. [Footnote: In the Senate, however, debate isunlimited. ]If the Senate rejects the bill, the measure is dead. If theSenate passes the bill without amendment, it is returned to the House, and enrolled on parchment for signature by the President. If theSenate amends the bill, the bill and the attached amendments arereturned to the House. If the House disagrees with the proposedchanges, it may either ask for an inter-house conference, or it maysimply send a notice of its disagreement to the Senate. In the lattercase, the Senate either reconsiders its amendments, or asks for aconference. In case of a conference, each house appoints an equalnumber of "managers, " who arrive at some sort of compromise, andembody this in a report. This report is acted upon by each house inseparate session. 560. THE BILL GOES TO THE PRESIDENT. --Bills killed in Congress neverreach the President, but a measure duly approved by both houses isthen sent to the chief executive for his approval. If he signs it, thebill becomes law. If he does not approve it, he may return it with hisobjections to the house in which it originated. If this house votesfor the passage of the measure by a two-thirds majority, and if thisaction is concurred in by the other house, the measure becomes lawover the veto of the President. If the President neither signs norreturns the measure within ten days, it automatically becomes law. However, measures reaching the President during the last ten days ofthe congressional session become law only if signed by him. Hisfailure to sign a bill reaching him under these circumstancesconstitutes a "pocket veto. " QUESTIONS ON THE TEXT 1. Distinguish between the two regular sessions of Congress. 2. Describe the internal organization of the houses of Congress. 3. Name and briefly characterize the chief officers of Congress. 4. What are the customary duties of the Speaker of the House? 5. By what means does the Speaker influence legislation? 6. What is the nature and function of the committee on rules? Whatchanges in the character of this committee occurred in 1910? 7. Outline the organization of the Congressional committee system. 8. How may a bill be introduced into the House of Representatives? 9. Outline the steps in enacting a Federal law. 10. Discuss the nature and limits of the Presidential veto. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter xiv. 2. Guitteau, _Government and Politics in the United States_, chapterxxiv. 3. Munro, _The Government of the United States_, chapter xxi. 4. Reed, _Form and Functions of American Government_, chapter xii. QUESTIONS ON THE REQUIRED READINGS 1. What is the relation of party organization to leadership inCongress? (Beard, pages 267-269. ) 2. Discuss the constitutional rights of the minority in the Houseof Representatives. (Beard, pages 288-289. ) 3. What is the influence of the Senate upon our national financialpolicy? (Munro, pages 307-308. ) 4. What are the chief advantages of the committee system? (Guitteau, pages 275-276. ) 5. What are the chief defects of this system? (Guitteau, pages 275-276. ) 6. What effect has the practice of unlimited debate in the Senatehad upon legislative business? (Beard, pages 275-276. ) 7. What is one of the most important defects of Congressionallegislation? (Munro, pages 310-311. ) 8. What is the "morning hour"? (Reed, page 273. ) 9. What is done with a bill which the President has signed? (Reed, page 277. ) 10. To what extent is Congress responsive to Public Opinion? (Munro, page 299. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Compare the internal organization of Congress with the organizationof your state legislature. 2. Compare the officers of Congress with the officers of your statelegislature. 3. Compare the committee system of Congress with the committee systemin your state legislature. 4. Compare the practice of debate in the National House ofRepresentatives with the use of debate in the lower house of yourstate legislature. 5. Compare Congress with your state legislature with respect to volumeof legislation. 6. The business of Congress. (McCall, _The Business of Congress_. ) 7. Rules of the Senate. (_Manual of the Senate_. ) 8. The Senate at work. (Bryce, _The American Commonwealth_, vol. I, chapter xii. ) 9. Rules of the House of Representatives. (_Manual of the House ofRepresentatives_. ) 10. The Speaker of the House. (Follett, _The Speaker of the House ofRepresentatives_. ) 11. Leadership in the House. (Beard, _American Government andPolitics_, pages 280-286. ) 12. The career of Speaker Clay, Blaine, Reed, or Cannon. (Consult anencyclopedia, or special biographies of these Speakers. ) 13. The House of Representatives at work. (Bryce, _The AmericanCommonwealth_, vol. I, chapter xiv. ) 14. Congressional finance. (Bryce, _The American Commonwealth_, vol. I, chapter xvii. ) 15. The committee system in Congress. (Bryce, _The AmericanCommonwealth_, vol. I, chapter xv; McCall, _The Business of Congress_, chapters in and v. ) 16. An Englishman's view of legislation in the Congress of the UnitedStates. (Bryce, _The American Commonwealth_, vol. I, chapter xvi. ) FOR CLASSROOM DISCUSSION 17. Should the Speaker of the House be deprived of the power to referbills to whatever committee he chooses? 18. Should the powers of the presiding officer of the Senate beincreased? 19. Is debate in the House of Representatives too greatly restricted? 20. Should the privilege of "franking" be restricted? 21. Should the President's power to veto bills be extended? Should itbe restricted? CHAPTER XLIV THE FEDERAL COURTS A. FRAMEWORK OF THE FEDERAL COURTS 561. CONSTITUTIONAL BASIS OF THE FEDERAL JUDICIARY. --The FederalConstitution makes only slight reference to the structure of theFederal courts. It merely provides that the judicial power of theUnited States shall be vested in one Supreme Court, and in suchinferior courts as Congress may from time to time ordain andestablish. In accordance with this provision, Congress in 1789 passed theJudiciary Act, which still forms the basis of our Federal judicialsystem. The Judiciary Act provided for the organization of the SupremeCourt, and also created a system of circuit and district courts. Itlikewise distributed Federal jurisdiction among the three grades ofcourts, established the office of Attorney General, and provided for aFederal marshal in each judicial district. In order to relieve theSupreme Court of part of its appellate jurisdiction, Congress in 1891created nine circuit courts of appeals. In 1912, Congress abolishedthe circuit courts which had been established by the Act of 1789. At the present time, thus, there are three grades of Federal courts:the Supreme Court, nine circuit courts of appeals, and eighty-onedistrict courts. In addition there are several special Federal courts. 562. FEDERAL JUDICIAL AGENTS. --All Federal judges are appointed by thePresident, subject to confirmation by the Senate. They hold office forlife, or during good behavior. Since Federal judges can be removedfrom office only by impeachment, they are relatively independent, bothof the appointing power and of the popular will. Judges receive salaries which may be increased, but which cannot bediminished, during their term of office. Each of the eight associatejustices of the Supreme Court receives an annual salary of $14, 500, while the Chief Justice receives $14, 900 a year. Circuit judgesreceive a salary of $7000 a year. Each district court judge receives$6000 a year. Upon reaching the age of seventy years, any Federaljudge who has held his commission for at least ten years, may resignand continue to draw full salary during the remainder of his life. Some additional judicial agents may be mentioned. In each Federaljudicial district there is an United States marshal, who is chargedwith the duty of enforcing the orders of the court. There is also ineach district a Federal prosecutor, who has the title of United Statesdistrict attorney. It is this officer who institutes proceedingsagainst persons violating Federal law. Both marshals and districtattorneys work under the direction of the Attorney-General of theUnited States. 563. THE SUPREME COURT. --At the head of the Federal judicial systemstands the Supreme Court. This tribunal holds its annual sessions atWashington, D. C. , usually from October until May. By far the mostimportant business coming before this court involves questions ofconstitutional law. [Footnote: Jurisdiction over questions ofconstitutionality is a form of appellate jurisdiction. In addition, the Supreme Court has original jurisdiction in (1) cases affectingdiplomatic and consular officers, and (2) cases to which a State is aparty. In practice, however, the original jurisdiction of the SupremeCourt has been relatively unimportant. ] Cases involving questions ofconstitutionality are always brought up to the Supreme Court, fromeither the lower Federal courts, or from the state courts. Cases ofthis kind are brought before the Supreme Court either on appeal or bywrit of error. When a case is submitted to the Supreme Court, each justice makes anindependent study of it, and a conference is then held, in which thevarious sides of the question are discussed and a decision reached. The Chief Justice then requests one of his colleagues to prepare the"opinion of the court, " containing the conclusions reached by themajority. In important cases, the disagreeing minority prepares a"dissenting opinion, " setting forth their reasons for believing thatthe case should have been decided otherwise. This dissenting opiniondoes not, however, affect the validity of the decision reached by themajority of the justices. 564. THE CIRCUIT COURT OF APPEALS. --The United States is divided intonine circuits, in each one of which a Circuit Court of Appealsexercises jurisdiction. The Circuit Court consists of three judges. Asa general proposition this court has appellate jurisdiction to reviewthe decisions of the district courts, but in some instances cases maybe taken from the district courts directly to the Supreme Court of theUnited States. In cases in which jurisdiction results from the factthat the suit is one between an American citizen and an alien, orbetween citizens of different states in the Union, the decision of theCircuit Court of Appeals is generally final. The jurisdiction of thiscourt is also final in all cases arising under the revenue, patent, and copyright laws of the United States. 565. THE DISTRICT COURT. --The lowest of the regular Federal courts isthe District Court. One of these courts exists in each of the eighty-one districts into which the country is divided. For each districtcourt there is generally a separate district judge, who holds court atone or more places within the district. The matters which may be brought before a Federal District Court arevarious. Among other things, the jurisdiction of the court extends toall crimes and offenses cognizable under the authority of the UnitedStates, cases arising under the internal revenue, postal and copyrightlaws, proceedings in bankruptcy, all suits and proceedings arisingunder any law regulating immigration, and also all suits andproceedings arising under any law to protect trade and commerceagainst monopoly. 566. SPECIAL FEDERAL COURTS. --Besides the three sets of Federalcourts described above, Congress has from time to time created anumber of special courts. The Court of Claims was created in 1855. It consists of five justices, sitting at Washington, and exercising jurisdiction over casesinvolving claims against the United States. In 1911 Congress created the Court of Customs Appeals, consisting offive judges who may review the decisions of the Board of GeneralAppraisers with respect to the classification and taxation of imports. Congress has also provided a system of territorial courts to handlecases arising in the territories and in the District of Columbia. Courts-martial for the trial of military and naval offenses have alsobeen provided for by congressional statute. B. THE FEDERAL COURTS IN ACTION 567. JURISDICTION OF THE FEDERAL COURTS. --The Federal courts exerciselimited, rather than general, jurisdiction. That is to say, they haveauthority to try only such cases as are specifically placed withintheir jurisdiction by the Constitution, or by congressional statute. Cases falling within the jurisdiction of the Federal courts may begrouped under two heads: First, cases affecting certain parties orpersons, and second, cases relative to certain matters. Under the first head may be grouped cases affecting ambassadors, otherdiplomatic representatives, and consuls. In the same group arecontroversies to which the United States is a party, controversiesbetween two or more states, controversies between a state and thecitizens of another state, controversies between citizens of differentstates, and controversies between a state, or the citizens thereof, and foreign states, citizens or subjects thereof. Under the second head fall three types of cases: First, controversiesbetween citizens of the same state claiming lands under grants ofdifferent states. Second, cases of admiralty and maritimejurisdiction, and third, cases in law or equity arising under theConstitution or laws of the United States, or treaties made undertheir authority. 568. THE WRIT OF HABEAS CORPUS. [Footnote: For the general arrangementof the material in Sections 568-570, I am indebted to ProfessorBeard's _American Government and Politics_, to which textacknowledgment is here made. ]--In the exercise of their judicialfunctions the Federal courts have the power of issuing three greatwrits affecting the rights of citizens. Of these the most famous is the writ of _habeas corpus_. This writ isdesigned to secure to any imprisoned person the right to have animmediate preliminary hearing for the purpose of discovering thereason for his detention. Where the writ is properly issued, theprisoner is brought into court for a summary examination. If it isfound that he has been detained in violation of law, he is released;if not, he is remanded for trial. Federal judges may not issue writs of _habeas corpus_indiscriminately. A writ can be issued only in the following cases:First, when a prisoner is in jail under Federal custody or authority;second, when an individual is in jail for some act done or omitted inpursuance of a law of the United States or the order, process, ordecree of some Federal court or judge; third, when an individual hasbeen detained because of violation of the Constitution or some law ortreaty of the United States; and fourth, when a citizen of a foreigncountry claims to be imprisoned for some act committed with thesanction of his government. 569. THE WRIT OF MANDAMUS. --The writ of mandamus may be used againstpublic officials, private persons, and corporations, for the purposeof forcing them to perform some duty required of them by law. Properlyused, the writ of mandamus is called into action to compel executiveofficers to perform some administrative duty. The court will notintervene, however, where the duty is purely discretionary and itsperformance dependent either upon the pleasure of the official, orupon his interpretation of the law. Usually the applicant for a writof mandamus must show that he has no other adequate legal remedy, andthat he has a clear legal right to have the action in questionperformed by the officer. 570. THE WRIT OR BILL OF INJUNCTION. --This writ may be of severaldistinct types. It may take the form of a mandatory writ, orderingsome person or corporation to maintain a _status quo_ by performingcertain acts. For example, striking railway employees may be orderedto continue to perform their regular and customary duties whileremaining in the service of their employer. The injunction may take the form of a temporary restraining orderforbidding a party to alter the existing condition of things inquestion until the merits of the case have been decided. This is oftenused in labor disputes. Sometimes the writ is in the form of a permanent injunction ordering aparty not to perform some act, the results of which cannot be remediedby any proceeding in law. This, too, has often been used in labordisputes. 571. JUDICIAL INTERPRETATION OF THE STATUTES. --The crowning feature ofthe American judiciary is its power to pass upon the constitutionalityof state and Federal laws. The Constitution does not give to thecourts the power to declare state or Federal statutes invalid on theground that they conflict with the Federal Constitution, but in thefamous case of Marbury _v. _ Madison in 1803, Chief Justice Marshalldemonstrated that under the Constitution the Supreme Court mustpossess the power of declaring statutes null and void when theyconflict with the fundamental law of the land. In deciding against thevalidity of a law, the court does not officially annul it, but merelyrefuses to enforce the statute in the particular case before thecourt. Thereupon, the executive officials who might be charged withthe administration of that particular law, neglect to enforce it. 572. GENERAL POLICY OF THE FEDERAL COURTS. --The Federal courts haveconsistently refused to decide abstract questions not presented in theform of a concrete case between parties to an actual suit. The SupremeCourt, for example, will take no notice of a statute until thequestion of its constitutionality arises in the form of a concretecase. The Federal courts have consistently refused to interfere in purelypolitical questions, the decision of which rests with executive orlegislative authorities. For example, the court will not touchquestions of the existence of war or peace, or the admission of a newstate into the Union. In reaching a decision, two forces are brought to bear upon thecourts. First, the character of previous decisions in similar oranalogous cases influences a decision. Second, important considerationis given the demands of justice or equity in the particular case inhand, regardless of precedent. Generally speaking judicial decisionsstrike a course midway between these two extremes. QUESTIONS ON THE TEXT 1. What does the Federal Constitution say concerning the structure ofthe Federal courts? 2. What act forms the basis of our Federal judicial system? 3. How are Federal judges chosen, and what are their salaries? 4. Name some judicial agents other than judges. 5. What is the nature and function of the Supreme Court? 6. What is the nature and function of the Circuit Court of Appeals?Over what cases has it jurisdiction? 7. What matters may be brought before the District Court? 8. What is the purpose of the Court of Claims? 9. Name some other special Federal courts. 10. What two classes of cases fall within the jurisdiction of theFederal courts? 11. What is the nature and purpose of the writ of _habeas corpus_? 12. What is the purpose of the writ of mandamus? 13. What three forms may the writ or bill of injunction take? 14. What is the crowning feature of the American judicial system? 15. Outline the general policy of the Federal courts. 16. What two forces help determine a decision? REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter xv. 2. Guitteau, _Government and Politics in the United States_, chapterxxviii. 3. Munro, _The Government of the United States_, chapter xxiv. 4. Reed, _Form and Functions of American Government_, chapter xxiii. QUESTIONS ON THE REQUIRED READINGS 1. Into what two branches may law be divided? (Munro, page 355. ) 2. What is equity? (Munro, page 351. ) 3. What are the judicial functions of the Attorney-General of theUnited States? (Beard, page 300. ) 4. What different grades of law are administered in the Federalcourts? (Guitteau, page 338. ) 5. Discuss the part played by partisan politics in judicial decisions. (Beard, pages 310-312. ) 6. What classes of people are exempted from jury service? (Munro, page354. ) 7. Distinguish between the original and the appellate jurisdiction ofthe Supreme Court. (Guitteau, pages 334-335. ) 8. How are cases presented to the Supreme Court? (Beard, page 296. ) 9. What is the significance of the Marbury v. Madison case? (Reed, page 284. ) 10. Name some other historical decisions which have been handed downby the Supreme Court. (Guitteau, pages 339-340. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Make a study of the Federal judicial district in which you live, with respect to territory embraced in the district, names and powersof Federal judicial agents, etc. 2. If possible, visit a near-by Federal court and observe the conductof a trial. II 3. The American doctrine of judicial supremacy. (Haines, _The AmericanDoctrine of Judicial Supremacy_. ) 4. The American system of courts compared with the European system ofcourts. (Bryce, _The American Commonwealth_, vol. I, chapter xxv. ) 5. Restraints on judicial officers in the United States. (Cleveland, _Organized Democracy_, chapter xxxiii. ) 6. Procedure in the United States Supreme Court. (Reinsch, _Readingson American Federal Government_, pages 716-717. ) 7. The courts and the Constitution. (Beard, _The Supreme Court and theConstitution_; Bryce, _The American Commonwealth_, vol. I, chapterxxiii. ) 8. The constitutionality of government regulation of commerce, (Goodnow, _Social Reform and the Constitution_, chapter vi. ) 9. Attitude of the courts toward social legislation. (Goodnow, _SocialReform and the Constitution_, chapter viii. ) 10. The Marbury v. Madison case. (Consult an encyclopedia. ) 11. The Dartmouth College case. (Consult an encyclopedia. ) 12. The life of John Marshall. (Consult an encyclopedia. ) 13. Characteristics of a good judge. (Kaye, _Readings in CivilGovernment_, pages 247-250. ) 14. Evolution of the judiciary. (Gettell, _Introduction to PoliticalScience_, chapter xx. ) 15. Relation of the judiciary to the executive branch of government. (Gettell, _Introduction to Political Science_, chapter xx. ) 16. Relation of the judiciary to the legislative branch of government. (Gettell, _Introduction to Political Science_, chapter xx. ) FOR CLASSROOM DISCUSSION 17. Should Federal judges enjoy life terms, or should their terms ofservice be limited to a specific number of years? 18. Did the framers of the Constitution intend that the Supreme Courtshould pass upon the constitutionality of Acts of Congress? (SeeBeard, _The Supreme Court and the Constitution_. ) 19. Do you believe that there should be any restriction upon thepresent power of the Supreme Court to pass upon the constitutionalityof Acts of Congress? 20. In the leading European countries what corresponds to our SupremeCourt is divided into a number of sections. Do you believe that ourSupreme Court ought to be reorganized on a similar plan? (See Munro, _The Government of the United States_, page 369. ) B. STATE AND LOCAL GOVERNMENT CHAPTER XLV CONSTITUTIONAL BASIS OF STATE GOVERNMENT [Footnote: For a fullerdiscussion of the constitutional basis of state government, seeChapter XXII of Beard's _American Government and Politics_. ] 573. CONSTITUTIONAL LIMITATIONS ON STATE GOVERNMENTS. --Under theArticles of Confederation the states exercised practically sovereignpowers; in the interests of a strong National government theConstitution adopted in 1789 distinctly limited the scope of stategovernment. The Federal Constitution transferred many important powersfrom the states to the Federal government, and imposed certainspecific limitations upon state governments. The more important ofthese limitations are as follows: No state may, without the consent of Congress, lay or collect impostsand duties upon exports and imports. The single exception to thisconstitutional prohibition is that a state may lay such imports orduties as are absolutely necessary for executing its inspection laws. No state may lay a tonnage duty without the consent of Congress. No state may levy a tax on the property, lawful agencies, orinstrumentalities of the Federal government. This is not aconstitutional limitation, but was deduced by Chief Justice Marshallfrom the nature of the Federal system. In recent years, however, thisdoctrine has been modified to mean that no state may tax a federalinstrumentality if such a tax would _impair its efficiency inperforming the function which it was designed to serve. _ States may legislate concerning local commercial matters, but no statemay interfere with interstate commerce. No state may pass any lawimpairing the obligation of contracts. The states have practically nocontrol over the monetary system. They may not coin money, emit billsof credit, or make anything but gold and silver coin legal tender. States may charter and regulate state banks, however, and may alsoauthorize a state bank to issue notes for circulation. No state may make or enforce any law which abridges the privileges orimmunities of citizens of the United States. No state shall pass anybill of attainder, by which is meant a legislative act which inflictspunishment upon some person without ordinary judicial trial. Nor mayany state pass an _ex post facto_ law, that is to say, a law whichimposes punishment for an act which was not legally punishable at thetime when it was committed. Lastly, no state may deprive any citizenof life, liberty, or property without due process of law, nor deny toany person within its jurisdiction the equal protection of the law. 574. POWERS OF STATE GOVERNMENTS. --Federal law is the highest law ofthe land, and no state constitution, state statute, or local law orordinance, may contravene it. But beyond this restriction, theauthority of the state is supreme. Just as state government must deferto Federal authority, so local government is subservient to stateauthority. Just as the Federal Supreme Court may declareunconstitutional any executive or legislative act, either of theNational, state, or local authorities, so the Supreme Court of anystate may declare null and void the acts of state or local authoritieswhich conflict with its constitution. Though they are limited by theFederal Constitution in matters which are preeminently national, thestates reserve to themselves a vast body of authority. Almost all ofthe ordinary activities of life are controlled by state or localgovernments, rather than by the Federal government. 575. CLASSIFICATION OF STATE CONSTITUTIONS: ACCORDING TO AGE. --Eachof the forty-eight states in the Union has a written constitution. Tobring out the fundamental similarities and differences among thevarious state constitutions, these documents may be classified intwo ways, first as to age, and second, in the light of democraticdevelopment. If state constitutions are classified on the basis of age, it will benoted that the constitutions of Massachusetts, Connecticut, RhodeIsland, and other New England states show signs of having beenstrongly influenced by colonial precedents. Next come constitutionswhich in form and general content stand midway between the earlier NewEngland constitutions and those of more recent years. Theconstitutions of New York (1894), Pennsylvania (1873), Indiana (1851), Wisconsin (1848), Kentucky (1891), Minnesota (1857), and Iowa (1857), are examples. Next come those constitutions of the southern stateswhich have been revised within the last quarter of a century. Finally, we may note that California, Oregon, Oklahoma and a few other westernstates have recently drafted new constitutions in which there has beena more or less radical departure from the precedents set in the oldercommonwealths. 576. CLASSIFICATION OF STATE CONSTITUTIONS: IN THE LIGHT OF DEMOCRATICDEVELOPMENT. --Between 1776 and 1800 American state constitutions weregenerally brief and conservative. Between 1800 and 1860 the growingtendency toward democratic control resulted in the formation of stateconstitutions which were more and more liberal. During this periodfear of the masses was superseded by distrust of the executive and anunbounded faith in the people acting in their collective capacity. Thesuffrage was extended, the governor and often state judges came to beelected by direct vote, and the power of the state legislature wasenlarged. After 1860 there was a reverse movement. This was due partly to agrowing faith in the executive, and partly to a reaction against theabuse of power by state legislatures. Particularly the more recentstate constitutions have limited the power of the state legislature, increased the power of the executive, provided for the centralizationof the state administration, and shortened the ballot. The presenttendency among state constitutions is to continue in the direction ofthe above-mentioned reforms. A. THE PARTS OF A STATE CONSTITUTION 577. THE BILL OF RIGHTS. --A vital part of a state constitution is thebill of rights, roughly corresponding to the first ten amendments tothe Federal Constitution. Generally the bill of rights affirms theprinciple of republican government, maintains that all powers areinherent in the people, and declares that all free government isformed by the authority of the people. A typical bill of rights alsoprovides that the laws of the state shall not be suspended except bythe legislative assembly, and includes the traditional limitations onbehalf of private rights. These include the right of free speech; theright to jury trial; the free exercise of religious worship; the rightpeaceably to assemble and petition the government for redress ofgrievances; the privilege of the writ of _habeas corpus_ except incase of rebellion, invasion, or public danger; the prohibition ofexcessive bail, and cruel and unusual punishments; and compensationfor private property when taken for public use. 578. THE FRAMEWORK OF GOVERNMENT. --A second part of a typical stateconstitution deals with the distribution of powers, the limitationsupon state officials and other elements in the framework ofgovernment. Especially in the more recent constitutions is the form ofstate government outlined in considerable detail. In addition toproviding a system of checks and balances by separating the executive, legislative, and judicial powers of state government, this part of theconstitution defines and limits the suffrage, provides for theorganization of the state legislature, and prescribes the limitationsunder which the legislature must operate. The election of the Governorand other important state officials is provided for, as is therelation of rural and municipal government to the state government. This part of the constitution likewise creates the state judicialsystem, though the regulation of details with regard to jurisdiction, procedure, and appeals is generally left to the discretion of thestate legislature. 579. STATE FINANCES. --A third division of a typical state constitutionplaces a number of limitations upon the financial powers of the statelegislature. These provisions are often detailed and complicated andhence are difficult to summarize. Their general purpose, however, isto fix a debt limit beyond which the legislature cannot go, and tocompel that body to make adequate provision for the payment ofinterest and principal in the case of debts which shall be incurred. 580. CONTROL OF ECONOMIC INTERESTS. --The more recent stateconstitutions provide in considerable detail for the regulation ofeconomic interests within the state. The activities of industrialorganizations are often narrowly restricted. In many states theconstitution provides for a corporation commission with large powersin the regulation of rates and charges, as well as general supervisionof corporate business. Many recent constitutions specify theconditions under which women and children may be employed inindustrial establishments. 581. PROVISION FOR THE GENERAL WELFARE. --An increasingly importantpart of the state constitution deals with the general welfare. Suchvital concerns as the public school system are dealt with. In atypical western state, for example, the constitution requires thelegislature to provide free instruction in the common schools of thestate for all persons between the ages of five and twenty-five. Thesame document sets aside certain revenues for educational purposes. The safeguarding of the public health, and detailed provision for thecreation and maintenance of public institutions for the dependent, defective, and delinquent classes, are other concerns of this part ofthe state constitution. 582. PROVISION FOR AMENDMENT. --In about two thirds of the states theconstitution provides for its own amendment by a constitutionalconvention composed of delegates elected by the voters of the state. The convention method is universally employed when a new constitutionis desired. Sometimes the state constitution provides for the holdingof such conventions at regular intervals, but generally the initiativeis left to the legislature. When, by vote or by resolution, this bodydeclares in favor of a convention, the proposition is placed beforethe voters. If a majority of these favor the project, the legislaturearranges for the election of delegates, and fixes the time and placeof the convention sessions. After the convention has completed itswork, it is customary for the new constitution to be submitted to thepeople for approval. Another common way of amending the state constitution, found in everystate except New Hampshire, is through legislative action subsequentlyratified by popular vote. By this method separate constitutionalamendments may be adopted, without necessitating a wholesale revisionof the constitution. Such individual amendments are usually proposedby the legislature and are later submitted to popular vote. In somestates only a majority vote of the legislature is required for theproposal of amendments, but ordinarily a special majority of twothirds or three fourths of the members of each house is required. In afew states, amendments cannot be considered until they have beenproposed by two successive legislatures. After the amendment has beenproposed for the second time, it must be ratified at the polls. Within the last decade several states, particularly in the West, haveadopted a more direct method of amending the constitution. This isthrough the Initiative and Referendum. [Footnote: The general questionof the Initiative and Referendum is treated in Chapter XXXVII. ] InOregon, for example, 8 per cent of the legal voters may petition for aproposed amendment to the constitution. The proposal is then submittedto the voters, and if it receives a majority of all votes cast, itbecomes part of the state constitution. Arizona, Arkansas, California, Colorado, Michigan, Missouri, Nebraska, Nevada, North Dakota, andother states allow this type of constitutional amendment. QUESTIONS ON THE TEXT 1. What are the chief limitations imposed upon state governments bythe Federal Constitution? 2. Discuss the range of authority enjoyed by state governments. 3. Classify state constitutions on the basis of age. 4. Discuss the classification of state constitutions in the light ofdemocratic development. 5. What is the nature of a "bill of rights"? 6. Discuss the framework of government as provided for in the stateconstitution. 7. What provision for state finances does a typical state constitutioncontain? 8. What are some of the provisions in state constitutions concerningeconomic interests? 9. How may a state constitution provide for the general welfare? 10. Describe the three ways in which state constitutions may beamended. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter xxii. 2. Guitteau, _Government and Politics in the United States_, chapterviii. 3. Munro, _The Government of the United States_, chapter xxviii. QUESTIONS ON THE REQUIRED READINGS 1. What is the significance of the "Revolutionary constitutions"?(Guitteau, page 86. ) 2. What is the relation of present-day stateconstitutions to the original colonial charters? (Munro, page 404. ) 3. Distinguish between the "constituent" and the "law-making" power. (Munro, page 405. ) 4. Into what two parts may the early stateconstitutions be divided? (Guitteau, page 86. ) 5. Discuss the checkand balance system as provided for in the constitutions of the variousstates. (Guitteau, page 89. ) 6. What authority controls the admissionof new states into the Union? (Beard, pages 443-445. ) 7. What does theconstitution of Oklahoma say concerning the writ of _habeas corpus_?(Beard, page 449. ) 8. Describe the procedure in a constitutionalconvention. (Munro, pages 410-411. ) 9. What is the relation of thestate constitution to the state courts? (Beard, pages 452-453. ) 10. Enumerate the principles which commonly govern the attitude of thestate courts toward the acts of the state legislature. (Beard, pages452-453. ) TOPICS FOR INVESTIGATION AND REPORT I 1. The history of your present state constitution. 2. The bill of rights in your state constitution. 3. The framework of government as provided for in the constitution ofyour state. 4. Methods by means of which your state constitution may he amended. 5. Classify and briefly characterize the amendments which have beenappended to the constitution of your state. II 6. Meaning of the term "constitution. " (Gettell, _Readings inPolitical Science_, pages 282-283. ) 7. Types of constitutions. (Gettell, _Readings in Political Science_, pages 284-285; Kimball, _State and Municipal Government in the UnitedStates_, chapter ii. ) 8. Methods of amending constitutions. (Gettell, _Readings in PoliticalScience_, pages 299-300. ) 9. Difficulties of constitutional amendment in the United States. (Gettell, _Readings in Political Science_, page 301. ) 10. Procedure in the state constitutional convention. (MassachusettsConstitutional Convention Bulletins, No. I. Hoar, _ConstitutionalConventions. _) 11. Recent changes in constitutions. (Dealey, _Growth of AmericanState Constitutions from 1776 to the end of the Year 1914. _) 12. Present tendencies in state constitutions. (Reinsch, _Readings onAmerican State Government_, pages 443-449. ) 13. The constitution of Oklahoma. (Reinsch, _Readings on AmericanState Government_, pages 450-464. ) 14. A comparison of constitutional amendment in Europe andconstitutional amendment in the United States. (Borgeaud, _Adoptionand Amendment of Constitutions in Europe and America_. ) 15. British constitutions. (Gettell, _Readings in Political Science, _pages 286-287; 292-293. ) 16. French constitutions. (Gettell, _Readings in Political Science, _pages 297-298. ) 17. German constitutions. (Gettell, _Readings in Political Science, _pages 298-299. ) FOR CLASSROOM DISCUSSION 18. Does the Federal Constitution too narrowly restrict the activitiesof the state governments? 19. Does the bill of rights in your state constitution adequatelyprotect your rights? 20. Does the constitution of your state too narrowly restrict thefinancial powers of the state legislature? 21. Is your state constitution too easy of amendment? Is it toodifficult of amendment? 22. Recent state constitutions tend to be very long and detailed. Whatare the advantages and disadvantages of this development? CHAPTER XLVI THE STATE EXECUTIVE A. THE GOVERNOR 583. THE ELECTION OF THE GOVERNOR. --In every state in the Union theGovernor is elected by popular vote. In most of the states thiselection takes place, together with that of other state officials, onthe Tuesday following the first Monday in November. Usually agubernatorial candidate is required to be at least thirty years ofage. He must be a United States citizen, and also a resident of hisstate of at least five years' standing. The Governor's term varies from two years in Massachusetts to fouryears in more than twenty states. In general, the term of office isincreasing. The average salary received by a state Governor is $5000 ayear. 584. LIMITATIONS UPON THE GOVERNOR. --A number of factors operate tolimit the power of the state Governor. The Federal Constitution limits his authority by declaring thatpersons charged with crime in, and escaped from, a neighboring state, must be delivered up to the executive authorities of the state inwhich the crime is charged to have been committed. The executive power of state government is not concentrated under theGovernor, but is shared by the Governor with a host of administrativeofficials. Many of these officials are elected directly by the people, and cannot, therefore, be held accountable by the Governor. Furthermore, the actual execution of the state laws rests primarilywith municipal and other local officials, and over these officers theGovernor has little or no control. The express powers of the Presidentof the United States have been rather liberally interpreted by thecourts, but the powers of the state Governor have generally beenconstrued in a narrow and literal sense. In many states the power ofthe Governor rarely or never extends beyond the express limits imposedby the state constitution. 585. EXECUTIVE POWERS OF THE GOVERNOR. --The Governor is charged by thestate constitution to see that the laws are faithfully executed. Thisis similar to the chief duty of the President of the United States, but whereas the President is aided by subordinate administrativeofficials over whom he has complete control, the Governor must actthrough a large number of state and local officials over whom he haslittle effective control. Of some value, however, is the power of the Governor to exercisegeneral supervision over the various executive officers of the state. He enjoys, in addition, the power to appoint many of the subordinateadministrative officials. Usually these appointments must be confirmedby the upper house of the state legislature. In most cases theGovernor cannot remove officials so appointed without the consent ofthe senate or council. The Governor is commander-in-chief of the armed forces of the state, and when the regular officers of the law are unable to cope withdomestic violence, he is empowered to call out the militia. In thisconnection, the Governor has the power of suspending the writ of_habeas corpus_, though most states declare that this writ may not besuspended except in times of rebellion and invasion. Two or threestates have recently provided that the writ of _habeas corpus_ may notbe suspended in any case whatsoever. 586. LEGISLATIVE POWERS OF THE GOVERNOR. --In general the Governoroccupies the same relation to the state legislature, as does thePresident toward Congress. Thus the Governor may send periodicmessages to the legislature, and may recommend such legislativemeasures as he believes desirable. The Governor often communicateswith the legislature concerning the financial condition and needs ofthe state. The Governor may also call special sessions of the statelegislature, for the consideration of urgent matters. In case the twohouses of the legislature are unable to agree upon a time foradjournment, the Governor may adjourn the state legislature. In one respect the Governor's power of veto exceeds that of thePresident, for in about two thirds of the states the Governor may vetoindividual items in appropriation bills. This privilege is denied thePresident, who must accept or reject a measure as a whole. Like thePresident, the Governor influences legislation through his relationswith the leaders of his party in the legislature, as well as throughhis power of the patronage. 587. JUDICIAL POWERS OF THE GOVERNOR. --In almost every state theGovernor has considerable control over the issuance of pardons andreprieves, in the case of all offenses committed against the state. Insome states the power to issue pardons and reprieves is exercised withthe consent of the state legislature, in other states the Governorshares this power with a board of pardons; in a few states theGovernor may act alone. 588. TENDENCY OF THE GOVERNOR'S POWER TO INCREASE. --The earlier stateconstitutions tended to restrict the powers of the Governor, and toextend liberal grants of power to the state legislature. Of recentyears the abuse of legislative power has tended to encourage suspicionof the legislature and a growing confidence in the Governor. As aconsequence, the Governor's term is in many states increasing. In theeffort to shorten the ballot and concentrate responsibility for thestate administration upon some one official, various states areincreasing the appointive power of the Governor. In a few states theGovernor now has authority to make special inquiries into the workingsof the various executive departments, with a view to checkinginefficient and irresponsible methods of work. In some states theGovernor's share in budget-making is increasing. In the majority ofstates the general tendency toward a shorter ballot, thereorganization of the state administration, and other methods ofreforming state government, will probably continue to enlarge thepower and influence of the Governor. B. THE STATE ADMINISTRATION 589. THE OLDER GROUP OF ADMINISTRATIVE OFFICERS. --Aside from theGovernor, the administrative officers of the state fall into twogroups: First, the older officers, who are relatively few, and who arealmost always elective; and second, the newer officers, boards, andcommissions, who are relatively numerous, and who may be eitherelective or appointive. The first group comprises such officers as the Lieutenant Governor, the Secretary of State, the State Treasurer, the Auditor orComptroller, and the Attorney-General. These older officers areusually elected at the general state election for a term varying fromstate to state. These officers are not under the control of theGovernor, but fulfill duties prescribed by the constitution, and areresponsible only to the people and to the courts. They may be, andoften are, of a different political party than the Governor, and sincethey are not under the control of that official, they often work atcross-purposes with him. This lack of coördination is in strikingcontrast to the harmony of action existing between the President ofthe United States and the heads of the Federal Executive Departments. 590. THE NEWER GROUP OF ADMINISTRATIVE OFFICERS. --As state governmenthas increased in complexity, the older group of administrativeofficers has been supplemented by the addition of a large number ofnew officers. These newer administrative officials are quite numerous, but theirgeneral character may be indicated by dividing them into two classes: The first class includes individual officers, such as, for example, asuperintendent of prisons, a state architect, a state historian, acommissioner of health, a food inspector, a geologist, a commissionerof corporations, a commissioner of banking, a superintendent of publicworks, and a state surveyor. Besides individual officers, the newer group of administrativeofficials includes a large number of boards and commissions which havebeen created by the state legislature and endowed with large powersfor the study and control of specific matters. The following boardsand commissions are examples of this second class: A state civilservice commission, a tax commission, a board of charities andcorrection, a water supply commission, a tax equalization board, aquarantine commission, a voting machine commission, a board ofpharmacy, a highway commission, and a public service commission. 591. DEFECTS OF STATE ADMINISTRATION. [Footnote: For a fullerdiscussion of this problem, see Chapter XXXVI. ]--The enlargement ofthe state administration by this creation of numerous individualoffices, boards, and commissions indicates an attempt on the part ofstate governments to grapple with the problems of democracy. Nevertheless, this rapid growth of the state administration has hadserious consequences. Once created, many of the newer officers haveattempted to perpetuate themselves. State legislatures have beenharassed by boards and commissions seeking unnecessary appropriations. Politicians without expert training or ability are often placed onboards and commissions dealing with technical matters. Responsible and efficient state government is rendered difficult bythe inability of the Governor effectively to control the few electiveofficials who constitute the older group of administrative officers;an even greater difficulty arises from the creation and expansion ofthe newer group of officers. The excessive number of individualofficers, boards, and commissions makes for inefficient andirresponsible government. Some of these officials are elected by thepeople, others are appointed by the Governor. Their terms vary sowidely that, as Professor Beard has pointed out, the appointing powernever has an opportunity to make a clean sweep and introduce moreefficient administrative methods. There is little or no coördinationbetween the various administrative offices, and very littlecentralization of responsibility. 592. THE STATE OF CIVIL SERVICE. --The spoils system has longconstituted a defect, not only in the Federal government but inAmerican state government as well. [Footnote: This problem is furtherdiscussed in Chapter XXXIV. ] And as in the case of the Nationalgovernment, this evil has been attacked primarily through the meritsystem. New York state led the way in 1883 by passing a comprehensiveCivil Service Act. This law provided for a commission authorized tocoöperate with the Governor in preparing rules, classifying the statecivil service, and conducting the examinations for the positions to befilled. Since then, Massachusetts, Wisconsin, Colorado, New Jersey, California, Ohio, Illinois, and other states have adopted some type ofcivil service system. State civil service laws are largely modelled after the national CivilService Act of 1883. In most of the legislating states laws of thistype provide for competitive examinations of a practical nature; theyprohibit political and religious interrogatives; and they forbid theassessment of holders of civil service positions for politicalpurposes. Appointment and promotion are upon the basis of merit, although as in the case of the Federal civil service, the standardsfor judging the character and capacity of individual officeholdershave not yet been perfected. QUESTIONS ON THE TEXT 1. What are the qualifications of the state Governor? 2. What limitations restrict the power of the Governor? 3. Outline the executive powers of the Governor. 4. What are the chief legislative powers of the Governor? 5. Describe the judicial powers of the Governor. 6. Is the power of the Governor increasing or decreasing? 7. Into what two groups may state administrative officers be divided? 8. Name some of the officials in the older group. 9. Discuss the character of the newer group of officials, 10. Name the chief defects of state administration. 11. Discuss the state civil service. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter xxiv. 2. Guitteau, _Government and Politics in the United States_, chapter x. 3. Munro, _The Government of the United States_, chapters xxx and xxxi. 4. Reed, _Form and Functions of American Government_, chapter x. QUESTIONS ON THE REQUIRED READINGS 1. How many states elect the Governor for two years? (Beard, page490. ) 2. How is the Governor of Mississippi elected? (Beard, page 489. ) 3. What is the function of the lieutenant governor? (Beard, pages 499-500. ) 4. What are the functions of the state treasurer? (Beard, page 500. ) 5. What are the chief duties of the attorney-general of the state?(Beard, page 500. ) 6. Discuss the impeachment process in state government. (Beard, pages508-509. ) 7. Name some miscellaneous duties of the Governor. (Reed, page 116. ) 8. What is the nature of the Governor's messages? (Reed, page 118. ) 9. How is a vacancy in the Governorship filled? (Munro, page 433. ) 10, Name some states in which the movement for the consolidation ofstate administrative offices is active. (Guitteau, page 112. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Term, qualifications, and salary of the Governor of your state. 2. A short biography of the present Governor of your state. 3. Platform on which the present Governor of your state was elected 4. A comparison of the influence exerted by the President of theUnited States upon the National legislature, and the influence exertedupon the state legislature by the Governor of your commonwealth. 5. A classification of the administrative officers of your state. 6. History of the merit system in your state. II 7. A comparative study of state governors in the United States. (Beard, _American Government and Politics_, page 491. ) 8. The legislative power of the Governor. (Mathews, _Principles ofAmerican State Administration_, chapter iii. ) 9. The veto power of the Governor. (Munro, _The Government of theUnited States_, pages 435-438. ) 10. Some special functions of the Governor. (Mathews, _Principles ofAmerican State Administration_, chapter v. ) 11. The administrative power of the Governor. (Mathews, _Principles ofAmerican State Administration_, chapter iv. ) 12. Relation of the Governor to law enforcement. (Reinsch, _Readingson American State Government_, pages 26-40. ) 13. The organization of the state administration. (Mathews, _Principles of American State Administration_, chapter vii. ) 14. The work of the state administration. (Munro, _The Government ofthe United States, _ chapter xxxi; Kimball, _State and MunicipalGovernment in the United States, _ chapter ix. ) 15. The selection of state officials. (Mathews, _Principles ofAmerican State Administration, _ chapter viii. ) 16. The removal of state officials. (Mathews, _Principles of AmericanState Administration, Principles of American State Administration, _chapter ix. ) FOR CLASSROOM DISCUSSION 18. Should the veto power of your state Governor be still furtherrestricted? Should it be enlarged? 19. Should the administrative offices in your state be reorganized andconsolidated? 20. Ought the merit system in your state to be extended? 21. Advantages and disadvantages of choosing administrative officialsby direct vote. CHAPTER XLVII THE STATE LEGISLATURE 593. STRUCTURE OF THE STATE LEGISLATURE. --The representative branch ofstate government is known under different names in various states, butthe term "state legislature" is in more or less general use. The state legislature is invariably a two-chambered body; the upperhouse is the smaller and is called the senate, while the lower andmore numerous branch is variously known as the house ofrepresentatives, house of delegates, or assembly. Usually the state senate differs from the lower house in certainimportant particulars. The senatorial districts from which members ofthe upper house are elected are always larger than are the districtsfrom which members to the lower house are chosen. Senators are usuallychosen for longer terms than are representatives. As in the case ofthe National Senate, the senate (in most states) is made a continuousbody by the provision that its members shall begin their terms atcertain periodic intervals. In the lower house of the statelegislature, on the other hand, all of the members take their seats atthe same time. 594. BASIS OF REPRESENTATION. --For the purpose of electing members ofthe state legislature, practically all of the states are divided intonumerous senatorial and representative election districts. Some statesapply the rule that representatives in the state legislature shall beapportioned among districts containing practically an equal number ofinhabitants. Other states, however, provide exceptions to this rule. For example, Alabama, Florida, New York and other states provide that each countyshall have at least one member in the house. Often the result of thisarrangement is that the smaller or more sparsely populated countiesare over-represented in the state legislature, while the more populouscounties are under-represented. Several states, notably Connecticut and Vermont, arrangerepresentation in the state legislature so that with respect topopulation, cities are under-represented and rural districts are over-represented. [Footnote: For a discussion of the problem of minorityrepresentation in state legislatures, see Chapter XXXV. ] 595. MEMBERSHIP. --The state constitution determines the qualificationsof those who are entitled to vote for state legislators. [Footnote:For an enumeration of these qualifications, see Chapter XXXIII, Section 415. ] Generally, anyone qualified to vote for a statelegislator is also eligible to membership. However, holders of bothFederal and state offices are excluded from sitting in the statelegislature. In some states the term of a senator is the same as that of arepresentative, but generally senators are elected for a longer termthan are members to the lower house. Representatives are generallychosen for two years, senators for four. In all states, members of the legislature are paid, either a fixedannual salary or a _per diem_ allowance based upon the length of thelegislative session. In most states senators and representativesreceive equal compensation. All state legislators are privileged from arrest or civil processduring the session. In addition they enjoy the usual privilege of freespeech in their official capacities. 596. ORGANIZATION. --Formerly state legislatures met annually, but atpresent the great majority convene only once in two years. In theeffort to cut down the amount of superfluous legislation, a number ofstate constitutions now restrict the legislative session to from fortyto ninety days. The legislature may adjourn itself to meet later inspecial session, or the Governor may call special sessions. TheGovernor may adjourn the legislature, if the two houses fail to agreeupon a time for adjournment. In internal organization, the state legislature resembles Congress. Except that the lieutenant governor is often the presiding officer ofthe senate, each house chooses all of its own officers. Each housedetermines its own rules of procedure and keeps a journal of itsproceedings. In addition, each house exercises the right of decidingupon the qualifications of its members, and disciplines and punishesits members for misconduct. As in the national legislature, work isexpedited by the committee system. The party is a dominant force inthe state as well as in the national legislature. 597. POWERS OF THE STATE LEGISLATURE--The law-making powers of thestate legislature extend to practically all subjects. The presumptionis that this body has a right to legislate upon any subject, unlessspecific prohibitions have been imposed upon it by either the Federalor the state constitution. The Federal Constitution forbids any state legislature to emit billsof credit, coin money, or pass laws impairing the obligation ofcontracts. Neither bills of attainder nor _ex post facto_ legislationmay be enacted by a state legislature. The Federal Constitutionlikewise declares that state legislatures may neither abridge theprivileges and immunities of citizens of the United States, nordeprive persons of life, liberty, or property without due process oflaw. No state may deny to any person within the state jurisdiction theequal protection of the laws. Restrictions imposed by the state constitution fall into severalgroups. These include restrictions in favor of trial by jury, religious freedom, and other privileges usually embodied in a bill ofrights; provisions controlling the grant of special favors tocorporations; restrictions upon the financial powers of the statelegislature; provisions defining the framework of state government;and prohibitions upon the power of the legislature to pass special andlocal laws. [Footnote: A special or local law is one which applies tosome particular individual or corporation, or to some particular city, county, or other locality. Prohibitions upon special and local lawsare necessary in order to prevent the legislature from extendingspecial favors to particular individuals or localities. ] 598. HOW A STATE LAW IS MADE. --Bills may originate in either house ofthe state legislature, except that in most states money bills mustoriginate in the lower chamber. To illustrate law-making in the state legislature, let us assume thata bill is introduced in the lower house. This may be done by any oneof several methods. Any member of the house may deposit a bill in abox near the speaker's desk. Sometimes a bill is introduced by thereport of a committee, or even by a messenger from the senate. Whenthe bill has been introduced, it is given a first reading. With theconsent of the house, the speaker then refers the measure to theappropriate committee. The adverse report of the committee generallykills the bill; but if the bill is favorably reported, and this reportis approved by the house, the bill is placed on the order of secondreading and is debated section by section, unless by unanimous vote itis advanced to the third reading. If the bill passes the secondreading, it is generally referred to the committee on revision. It isthen engrossed, reported back to the house for the third reading andthe final vote. Sometimes the yeas and nays of this final vote areentered upon the journal, so that responsibility may be fixed uponeach member. The bill then goes to the senate, where the procedure is very muchlike that of the house, except that the committee of the wholesometimes takes the place of the order of the second reading asconducted in the house. 599. THE BILL GOES TO THE GOVERNOR. --In every state except NorthCarolina, a bill which has passed both branches of the legislaturemust then go to the Governor for approval. If this officer signs it, it becomes law. If he disapproves of it, he returns it with hisobjections to the house in which it originated. In spite of thisobjection by the Governor the legislature may enact the measure intolaw, if a sufficiently large majority in each house votes in favor ofthe bill. This majority is usually two thirds of the members in eachhouse. Generally the Governor has a ten-day period in which to considerbills. If a bill is not returned to the legislature with hisobjections within this period, it automatically becomes law withouthis signature, unless the adjournment of the legislature prevents itsreturn to that body. In most states the Governor has the importantprivilege of vetoing particular items in appropriation bills, whilesanctioning the rest of the measure. 600. DEFECTS IN STATE LEGISLATION. [Footnote: For a fuller discussionsee Chapter XXXVI. ]--There is, among students of American government, a general agreement that the legislative procedure of the variousstates evidences a number of serious defects. One of these defects is the absence of responsibility. Any member ofthe state legislature may introduce as many bills as he likes, but heneed not assume responsibility for any of them. Another serious evil is the lack of experience and technical skill onthe part of legislators. Legislators are frequently ignorant of thesubject matter with which they are called upon to deal. There is atendency for legislators to ignore the effect of a new statute uponthe existing body of law. Nor is the constitutionality of the measurecontemplated always taken into account. Ill-advised and perniciouslegislation is the result. Log-rolling and lobbying constitute another defect of statelegislation. Log-rolling leads to the passage of numerous billswithout their adequate scrutiny by individual members, and withouteither individual members or legislative committees assumingresponsibility for those measures. The pressure exerted upon statelegislatures for legislation favoring special interests is stillgreat. 601. THE REFORM OF LEGISLATIVE PROCEDURE. --A few states have attemptedto overcome the lack of technical information on the part oflegislators by providing for expert bill drafters. In New York, forexample, the state legislature has been provided with a number ofcompetent bill drafters whose duty it shall be, during the session ofthe legislature, to draw bills, examine and revise proposed bills, andadvise as to the legal effect of any legislation. These bill draftersmay be set to work on the request of either house, or of a committee, member, or officer thereof. A large number of states now have a legislative reference bureau whichkeeps a careful record of the laws passed in the various states of theUnion. This bureau maintains a library, and issues bulletins for theguidance of legislators. In 1909 Wisconsin created the office of reviser. This officer keeps aloose-leaf system of laws, and collects court decisions affectingstatutes. At the beginning of each session this officer also presentsto the committees on revision of each house of the legislature, billsproviding for such consolidation and revisions as may be completedfrom time to time. The reviser supervises the preparation, printing, and binding of such compilations of particular portions of thestatutes as may be ordered by the head of any state department. There is an increasing tendency to curb lobbying in statelegislatures. The laws of New York and Wisconsin may be taken astypical. That of New York provides that every person retained oremployed for compensation as a counsel or agent by any person, firm, corporation, or association, to promote or oppose, directly orindirectly, the passage of any bill or resolution, must be registeredevery year in the office of the secretary of state, and must give thename of the person by whom he is retained. The Wisconsin law providesthat legislative agents or counsels may not attempt to influencemembers privately, but must confine themselves to arguing beforecommittees and filing printed briefs with the members of thelegislature. QUESTIONS ON THE TEXT 1. Discuss the structure of the state legislature. 2. In what ways does the senate usually differ from the lower house? 3. What is the basis of representation in the state legislature? 4. How are the qualifications of state representatives determined? 5. Compare the term of senator with that of state representative. 6. Outline the organization of the legislature. 7. Compare the organization of the state legislature with that of thenational legislature. 8. What is the scope of power enjoyed by the state legislature? 9. What limitations are placed upon state legislatures? 10. Describe the making of a state law. 11. Discuss the veto power of the Governor. 12. What are some defects of state legislation? 13. Outline some attempts to eliminate these defects. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter xxv. 2. Guitteau, _Government and Politics in the United States_, chapterix. 3. Munro, _The Government of the United States_, chapter xxix. 4. Reed, _Form and Functions of the United States Government_, chapterxi. QUESTIONS ON THE REQUIRED READINGS 1. Under what four heads may the limitations on state legislatures begrouped? (Guitteau, page 101. ) 2. What limitations are imposed upon state legislatures by therepublican nature of state government? (Guitteau, page 102. ) 3. In what states are annual legislative sessions held? (Guitteau, page 96. ) 4. Why has the legislative session been shortened in some states?(Reed, pages 123-124. ) 5. Under what three heads may state legislative power be classified?(Guitteau, page 100. ) 6. What is the most important of the powers of the state legislature?(Reed, page 128. ) 7. What are the non-legislative duties of the state legislature?(Guitteau, pages 100-101. ) 8. What can be said as to the personnel of the state legislature?(Reed, page 126. ) 9. What is a "rotten borough"? (Beard, page 521. ) 10. Why are state laws frequently of inferior quality? (Munro, page428. ) TOPICS FOR INVESTIGATION AND REPORT I 1. A comparison of the upper with the lower house of your statelegislature. 2. Gerrymandering in your state. 3. Occupations and professions represented in the membership of yourstate legislature. 4. The character of legislation recently enacted by your statelegislature. II 5. Development of the law-making department. (Gettell, _Readings inPolitical Science_, pages 341-342. ) 6. General principles of legislative organization. (Gettell, _Readingsin Political Science_, page 343. ) 7. Advantages of the bicameral system. (Gettell, _Readings inPolitical Science_, page 344. ) 8. The function of the legislature. (Gettell, _Readings in PoliticalScience_, page 357. ) 9. The lobby. (Reinsch, _Readings on American State Government_, pages79-84. ) 10. Financial procedure in state legislatures. (Reinsch, _Readings onAmerican State Government_, pages 56-61. ) 11. The actual work of making a law. (Reed, _Form and Functions ofAmerican Government_, chapter xii. ) 12. Legislative apportionments. (Reinsch, _American Legislatures andLegislative Methods_, chapter vii. ) 13. Obstacles to intelligent law-making. (Gettell, _Readings inPolitical Science_, pages 358-359. ) 14. Danger of over-legislation in the United States. (Gettell, _Readings in Political Science_, page 361. ) 15. The legislative reference bureau. (Reinsch, _Readings on AmericanState Government_, pages 63-73. ) 16. The relation of the state legislature to local government(Gettell, _Introduction to Political Science_, chapter xxii. ) 17. Public forces influencing legislation. (Reinsch, _AmericanLegislatures and Legislative Methods_, pages 275-298. ) FOR CLASSROOM DISCUSSION 18. Would shortening the length of the legislative session improve thecharacter of legislation in your state? 19. Should members of the state legislature be residents of thedistricts from which they are chosen, or should they be chosen on astate-wide ticket? 20. Should our state legislatures be made unicameral? (See Munro, _TheGovernment of the United States_, pages 416-418. ) CHAPTER XLVIII THE STATE COURTS A. SOURCES OF LAW 602. ENGLISH COMMON LAW. --One important source of our system ofjurisprudence is the English common law. This law is not found in theenactment of statutes, but consists of court decisions spread overseveral centuries. The common law has been defined as "that rule ofcivil conduct which originated in the common wisdom and experience ofsociety, " and which "in time became an established custom, and hasfinally received judicial sanction and affirmance in the decisions ofthe courts of last resort. " [Footnote: W. C. Robinson, quoted in_Government and Politics in The United States_, by W. B. Guitteau, Houghton Mifflin Co. , Boston, 1920. ] The common law began itsdevelopment in early England, and with the settlement of America wastransplanted to this country. Though radically modified by Americanconstitutional and statutory enactments it still remains the basis ofour legal system. 603. EQUITY. --Common law tended to become so stereotyped and soinflexible that in some cases an application of the law worked aninjustice. Very early in English history this situation gave rise to anew form of jurisprudence called equity. Equity is that legal systemwhich supplements common and statute law by aiming to secure justicewhere a strict application of law would work an injustice. Equitydeveloped in England after the Norman Conquest, and, like the commonlaw, was transferred to this country in colonial times. A distinct setof chancery or equity courts was created to administer equity in earlyAmerica, but at present equity is administered by the same judges thatpreside over the regular state law courts. Both equitable and legalrelief may be secured in one suit. 604. STATUTES. --Another important source of law is the statutesenacted by the state legislature. Most state laws relate to thestructure and functions of government, but statutory enactment is alsoemployed to regulate a few branches of private law, includingprincipally matters which affect the public at large as well asprivate individuals. Examples are laws relating to wills andsuccession to property, marriage and divorce, partnerships, andcorporations. The scope of the statutes is widening, and during the last halfcentury several fields of the common law have been covered by statute. Criminal law, criminal procedure, and civil procedure have beencodified in various states. Some states have attempted to codify theentire civil law, but experience has proved that this may easilyrender the law too rigid. 605. OTHER SOURCES OF LAW. --The state constitution, the FederalConstitution, and Federal laws and treaties with foreign countries areother sources of state law. In summary, the various kinds of law which are enforceable in thestate courts may be considered as forming a pyramid, built upward bythe following steps: English common law, equity, state statutes, thestate constitution, Federal statutes, treaties with foreign nations, and the Federal Constitution. B. STRUCTURE OF THE COURTS 606. THE JUSTICE OF THE PEACE. --State courts are arranged in aprogressive series. At the bottom of this series is the justice of thepeace, who exercises jurisdiction over petty offenses and over civilcases involving very small amounts. Generally there is a justice ofthe peace in each township or other local district. In large citiesthe civil and criminal jurisdiction of the justice of the peace isusually divided between two sets of courts: first, the municipal orcity courts, with a minor civil jurisdiction; and second, the policeor magistrates' courts with jurisdiction over petty criminal offenses. The police or magistrates' courts have the power to make preliminaryinvestigations in case of felonies or serious misdemeanors. 607. THE COUNTY COURTS. --Above the justices of the peace there are, inmost states, a number of county courts, exercising limitedjurisdiction. These courts, sometimes called courts of common pleas ordistrict courts, have jurisdiction over civil cases involvingconsiderable sums, as well as jurisdiction over most criminaloffenses. In addition these courts usually consider appeals from thejudgments of justices of the peace. 608. SUPERIOR OR CIRCUIT COURTS. --In many states there is a superior, circuit, or district court immediately above the county courts, thoughin some states this tribunal takes the place of the county courts. Thesuperior court has jurisdiction over civil cases involving unlimitedsums, as well as unlimited original jurisdiction over criminalmatters. It may also try all cases over which the lower courts have nojurisdiction. 609. THE SUPREME COURT. --At the head of the state judicial systemthere is a court of last resort, known in various states by differentnames. It may be called the court of appeals, the court of errors andappeals, or simply the supreme court. Practically all of the casescoming before this court are appealed from the lower courts. Ordinarily it deals with points of law rather than of fact. 610. SPECIAL COURTS. --In addition to the regular state courts thereare sometimes special tribunals for special purposes. Examples of suchcourts are the probate or surrogates' courts for the settlement of theestates of deceased persons; children's courts for the treatment ofcases involving children; courts of domestic relations; and courts ofclaims for hearing claims against the state. 611. STATE JUDGES. --In almost all of the states judges are chosen bypopular vote, though in half a dozen states the choice of theseofficials still lies with the legislature or with the Governor, orwith both acting jointly. Judges of the higher state courts aregenerally chosen for a long period of time, even for life, while thejudges of the lower courts are chosen for relatively short periods. Salaries vary from practically nothing but fee money for some justicesof the peace to an average of $7000 a year for justices of the supremecourt. The qualifications imposed upon judges include a minimum age of25 to 35 years, and citizenship for a varying period of years. Anothercommon requirement is residence within the state, or even residencewithin the judicial district. For judges of the higher courts it isthe custom to demand membership in the legal profession. Judges may beremoved by impeachment, and, in a few states, by use of the Recall. 612. OTHER COURT OFFICIALS. --The district or prosecuting attorney isan important official. Generally he is chosen by the voters of thecounty, though in some instances he is elected from larger areas. Thedistrict attorney represents the state in all criminal cases, andconducts the prosecution. This officer conducts a preliminaryinvestigation into crimes and determines whether or not a prosecutionshould be instituted. If the decision is in the affirmative, hepresents the case to the grand jury. If the grand jury returns anindictment, that is, if it demands that the accused be held for trial, the prosecuting attorney conducts the prosecution at the ensuingtrial. The clerk, or recording officer, is generally appointed by the court, though he may be elected by popular vote. The constable or sheriff iselected by popular vote. The clerk and the constable are charged withthe execution of all orders, judgments, and decrees of the court. C. POWERS AND PROCEDURE 613. RELATION OF STATE TO FEDERAL COURTS. --The framework of Americangovernment includes a dual system of courts, the Federal courts andthe state courts. The jurisdiction of the Federal courts isspecifically defined by the Federal Constitution, while the statecourts have a jurisdiction which is limited only by the prohibitionsof the state and Federal Constitutions. The two systems of courts areindependent in the exercise of their respective powers, and haveseparate jurisdictions. In some cases, however, the state courtshave a concurrent jurisdiction with the Federal courts, and a litiganthas a choice of tribunals before which to bring suit. In most suitsthe decision of the state supreme court is final, but cases involvingFederal law may be appealed for final decision to the Supreme Court ofthe United States. 614. POWER TO DECLARE STATE STATUTES UNCONSTITUTIONAL. --Just as theFederal courts are the final interpreters of all domestic law, so thestate courts have the power to pass upon the constitutionality ofstatutes enacted either by the state legislature or by local law-making bodies. The state constitution is the fundamental law of thestate, and it is the duty of the state courts to see that all stateand local legislative acts conform to this fundamental law. 615. POWER OVER EXECUTIVE OFFICIALS. --Through their power to pass uponthe legality of executive acts, the state courts exercise some degreeof control over executive officials. If a state governor wereillegally to remove an official from office, for example, the courtscould reinstate the latter. The state courts also have the power to issue writs of mandamus andinjunction. The former may be used, under certain circumstances, tocompel an executive officer to perform his duty; the latter writ maybe used to prevent either state officials or private individuals fromcommitting illegal acts. 616. CIVIL JURISDICTION. --The jurisdiction of the state courts iseither civil or criminal. The purpose of civil law is to protect the rights of the individualand to redress his wrongs. The individual rights which are the concernof civil law fall under three heads: First, the right of personalsecurity, including the right of protection against violence; second, the right of personal liberty, including the rights set forth in thebill of rights of the state constitution; third, the rights ofproperty, including the right to acquire and hold property, and theright to demand fulfilment of contracts made under state law. 617. CIVIL PROCEDURE. --If an individual believes that his rights havebeen violated, he, as plaintiff, is entitled to file a complaint withthe proper court. The sheriff or constable then summons the defendantto appear in court, and the clerk of the court issues a summons orsubpoena to all witnesses which either party to the suit desires tohave testify. Generally either party may demand a trial by jury. Bothplaintiff and defendant are ordinarily represented by counsel whichpresent the different sides of the case to the judge and jury. Thejudge decides what evidence may be properly presented to the jury. After the closing argument of the plaintiff's counsel, the judgeinstructs the jury on the legal points involved in the case. The jurythen retire and attempt to reach an unanimous decision. If able so toagree, they return a verdict for either plaintiff or defendant, andafter the verdict has been accepted by the court, judgment isrendered. If the jurors have been unable to come to an unanimousdecision, the case is ordinarily tried with another jury, though in afew states an unanimous verdict in civil cases is not required. If the decision of the court is accepted as final, the judgment isenforced. On the other hand, the dissatisfied party may appeal thecase to the next higher court on the ground that the verdict wascontrary to the weight of evidence, or because of errors of lawcommitted by the judge. Under certain circumstances the judge whotries the case may be induced to grant a new trial. 618. CRIMINAL JURISDICTION. --The purpose of criminal law is to punishthose who have committed public wrongs, _i. E. _ wrongs against thestate or community. Crimes are of two types: first, felonies, including such grave offences as murder, arson, burglary, and larceny;and second, misdemeanors, including such lesser offenses as bribery, knowingly receiving stolen goods, libel, assault and battery, anddisturbance of the peace. Usually felonies are punished either bydeath, or by a long prison sentence. Misdemeanors are ordinarilypunished by fines or by imprisonment for a short term. 619. CRIMINAL PROCEDURE. --A criminal proceeding usually begins withthe arrest of the accused person. Generally, though not always, arrestis in pursuance of a warrant. As soon after arrest as possible, theaccused is brought before a magistrate for a preliminary examination. If the examining magistrate finds that there is probable cause forholding him for trial, the accused is committed to jail to awaittrial. Unless the charge is murder, however, the defendant may bereleased on bail. If the charge is a serious one, indictment by the grand jury is thenext step. If this jury decides that the evidence is insufficient, thecharge is dismissed and the prisoner released. The grand jury meets insecret, and hears only the charges against the accused. These aregenerally presented by the prosecuting attorney. After the defendantis indicted, the prisoner is brought into court and allowed to plead. If he pleads guilty, the judge may forthwith impose sentence and thereis no trial. If the plea is "not guilty, " a trial is arranged, a juryof twelve men impanelled, and the trial begins. The case is opened by the prosecuting attorney, since it is the dutyof the state to assume the defendant innocent until he is provedguilty. The prosecuting attorney presents his witnesses, each of whichthe defendant's attorney may cross-examine, and in turn allows thedefendant's attorney to present the defense. The prisoner is notquestioned at any stage in the trial, unless he is willing to take thestand as a witness in his own behalf. After the prosecuting attorney and the defendant's counsel havecompleted their case, the judge sums up the evidence brought out byeach side, and instructs the jury as to the law involved. The jurythen retire and attempt to reach a verdict. Generally such a verdictmust be unanimous, and if this cannot be secured, the jury isdismissed and the case is held for re-trial. If the verdict is "notguilty, " the prisoner is discharged; if he is found guilty, sentenceis imposed by the court, either immediately or at some futuredate. [Footnote: For a discussion of the legal aspects of the problemof crime, see Chapter XXI. ] QUESTIONS ON THE TEXT 1. What is meant by the term "common law"? 2. Define equity. How did it arise? 3. What is the importance of the statutes as a source of state law? 4. What are some other sources of law? 5. Describe the work of the justice of the peace. 6. What is the jurisdiction of the county courts? 7. What is the chief function of the state supreme court? 8. Name some special state courts. 9. What is the function of the district attorney? 10. What is the relation of state to Federal courts? 11. Discuss the chief powers of state courts. 12. What is the scope of the civil jurisdiction of the state courts? 13. Describe a civil trial. 14. What are the two types of crimes? 15. Outline the steps in a criminal trial. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter xxvi. 2. Guitteau, _Government and Politics in the United States_, chapterxi. 3. Munro, _The Government of the United States_, chapter xxxiv. 4. Reed, _Form and Function of American Government_, chapter xiii. QUESTIONS ON THE REQUIRED READINGS 1. Define common law. (Guitteau, page 115. ) 2. What is the relation of the old Privy Council to the origin ofEnglish common law? (Guitteau, page 116. ) 3. What is a tort? (Beard, pages 558-559. ) 4. What is the relation of the state judiciary to the otherdepartments of state government? (Reed, page 160. ) 5. To what extent do the Federal courts interfere with the decisionsof the state courts? (Munro, page 492. ) 6. By what three methods may judges be chosen? (Beard, page 550. ) 7. Name some states in which judges are not chosen by the people. Howare judges chosen in these states? (Beard, page 550. ) 8. Compare the salaries of American judges with the salaries ofEuropean judges. (Beard, page 552. ) 9. By what three methods may judges be removed? (Munro, pages 496-497) 10. In what state has the codification of the civil code been mostsuccessful? (Reed, page 168. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Provisions in your state constitution with respect to the statejudiciary. 2. The choice of judges in your state. 3. Characteristics of a good judge. 4. The actual conduct of a civil or criminal trial in a near-by court. 5. Delay in legal procedure in your state. (Consult a friendlyattorney. ) 6. Methods of removing judges in your state. II 7. The evolution of state justice. (Gettell, _Readings in PoliticalScience_, page 384. ) 8. Function of the state court. (Gettell, _Readings in PoliticalScience_, page 387. ) 9. Methods of choosing judges in the various states. (Gettell, _Readings in Political Science_, page 388. ) 10. Procedure in the state courts. (Kimball, _State and MunicipalGovernment in the United States_, chapter xv. ) 11. The system of appeals in state courts. (Reinsch, _Readings onAmerican State Government_, pages 150-158. ) 12. Politics and the state courts. (Reinsch, _Readings on AmericanState Government_, pages 158-168. ) 13. Defects in the enforcement of law. (Reinsch, _Readings on AmericanState Government_, pages 173-180. ) 14. Relation of judicial inefficiency to crime. (Reinsch, _Readings onAmerican State Government_, pages 181-198. ) 15. Legal claims against the state. (Reinch, _Readings on AmericanState Government_, pages 168-172. ) 16. Necessity of judicial independence. (Gettell, _Readings inPolitical Science_, page 391. ) 17. The significance of lawyers in the United States. (Gettell, _Readings in Political Science_, page 390. ) 18. A summary of the defects of the State judiciary. (Bryce, _TheAmerican Commonwealth_, vol. I, chapter xlii. ) FOR CLASSROOM DISCUSSION 19. Should a jury sitting in a criminal trial be required to render anunanimous verdict or simply a majority decision? 20. Should state judges be chosen directly by the people, or selectedby the state legislature, or appointed by the Governor? 21. Should judges be subject to the Recall? 22. Should the entire civil law of your state be codified? 23. Advantages and disadvantages of separate administrative courts. (See Gettell, _Readings in Political Science_, pages 392-393. ) CHAPTER XLIX MUNICIPAL GOVERNMENT A. DEVELOPMENT OF THE AMERICAN MUNICIPALITY [Footnote: For an extendedaccount of American municipal development, see Fairlie's _MunicipalAdministration_. An excellent summary of Fairlie is found inGuitteau's _Government and Politics in the United States_, HoughtonMifflin Co. , Boston, 1920. ] 620. RAPID GROWTH OF AMERICAN CITIES. --A striking feature of Americanlife is the rapidity with which our cities have grown. At the time ofWashington's first inauguration, the United States were sopredominantly rural that only about one thirtieth of our populationwas found in the cities. With the progress of the IndustrialRevolution came an unprecedented development of transportation and thefactory system. More and more people made their homes in the cities, until in 1890 approximately a third of the people of the United Stateswere living in cities. According to the census of 1920 more than halfof our population is concentrated in towns and cities. 621. THE AMERICAN CITY BEFORE THE REVOLUTION. --New York, now thelargest American city, is also the oldest, having received its charterin 1686. Between that date and the outbreak of the Revolution, nineteen other municipalities received charters. The colonial citiesmodelled their organization after the English borough. Practically allauthority was vested in a council, consisting of a mayor, recorder, aldermen, and councilmen, acting as a single body. The mayor waseither appointed by the Governor, or elected by the council. The chiefduty of the mayor was to preside over the council and execute itsordinances. 622. THE AMERICAN CITY, 1775-1825. --Several important changes in thecharacter of the American city took place in the half century whichfollowed the Declaration of Independence. The power to grant charters to cities was transferred from theGovernor to the state legislature. This was the natural outcome of anincreasing suspicion of the executive authority, and a correspondingincrease of faith in the state legislature. Before the end of thisperiod the city came definitely under the control of the statelegislature. In the absence of constitutional restrictions, thelegislature has continued to exercise an almost dictatorial controlover the cities within its borders. Also typical of this period was the subordination of city affairs tostate and national politics. 623. THE AMERICAN CITY, 1825-1850. --During this period a number of newcities sprang into prominence. Immigration was increasing, and theindustrialization of the country was crowding the population intolarger and larger units. New York, Boston, St. Louis, and other cities adopted the two-chambered-council plan. The passion for democratic control swept away the propertyqualifications prescribed by some of the early city charters, andpractically attained universal manhood suffrage. The demand forpopular control likewise led to the present practice of choosing themayor by popular vote, the older methods of State appointment orcouncil election being discarded. 624. THE AMERICAN CITY, 1850-1875. --Many pressing municipal problemsappeared in this period. The functions of the American city becamemore numerous and more complex. Police and fire systems wereinstalled; waterworks, sewer systems, and city parks were provided;education and charitable relief were developed. Under the stress of administering these additional functions, citiesapplied more and more frequently to the state legislature for speciallegislation granting them additional powers. State legislatures tendedto pass such special acts freely, with the result that corrupt andpernicious legislation became common in many states. Special interestsengaged in lobbying, bribery, and log-rolling to secure special favorsfrom legislatures. Public service corporations often secured valuablefranchises on terms that did not adequately protect the publicinterest. 625. MUNICIPAL REFORM. --The period since 1875 and especially since1900 has been marked by a strong tendency to reform municipalgovernment. The abuse of power by the city council in many instances forfeited therespect with which the public had formerly regarded that body. Thepower to appoint various city officials was transferred from thecouncil to the voters, and many of the functions formerly exercised bythe council were entrusted to newly created municipal boards. In about half the states constitutional provisions now forbid thelegislature to pass special acts concerning municipalities. In otherstates the constitution enumerates a large number of subjects withregard to which the legislature cannot enact special legislation. Insome states the cities of the state are classified into two or moregroups, according to population; the legislature is compelled todesignate the group or groups to which statutes are to apply. In abouta dozen states certain types of cities are allowed to frame and amendtheir own charters, provided that such acts are not inconsistent withthe constitution and statutes of the state. Municipal civil service reform is of increasing importance, more than200 American cities having sanctioned it in some form. As applied tomunicipal affairs the merit system includes a municipal commission, appointed by the mayor; a system of competitive examinations designedto test character and capacity; a plan for requiring the appointingofficer in each department of city government to select hissubordinates from an eligible list; a method of removing officials;and sometimes a system of pensioning employees who have grown old inthe service. The movement for popular control has been closely associated withmunicipal development. The tendency to shorten the ballot, the holdingof municipal elections at a different time than state and nationalelections, and the concentration of administrative officers under aresponsible appointing head, are steps in this direction. In manystates the Direct Primary has been intimately associated withmunicipal development. The Initiative, Referendum, and Recall havebeen adopted in a large number of cities, especially where the mayor-council plan has been abandoned for the commission form of government. B. MUNICIPAL ORGANIZATION 626. THE THREE TYPES OF CITY GOVERNMENT. --The three types of citygovernment in the United States are the mayor-council plan, thecommission plan, and the city manager plan. [Footnote: For adescription of the commission and city manager plans of citygovernment, see Chapter XXXVI. ] The commission plan is a new form ofcity government which has been designed to overcome the defects of theold mayor-council plan, while the city manager plan is a modificationof the commission plan. Of recent years both the commission plan andthe city manager plan have spread rapidly, but it is still true thatfew American cities of any appreciable size have adopted either ofthese two plans. The old mayor-council plan prevails in most Americancities, and for this reason the remainder of this chapter will bedevoted to a description of this form of government. 627. THE CITY COUNCIL: ORGANIZATION. --Usually the city council is asingle-chambered body, though some of the larger cities have from timeto time experimented with a double-chambered council. In some citiescouncilmen are chosen on a general ticket, but in most cases thecouncil consists of one member from each ward or district into whichthe city is divided. Councilmen must be voters in the city in whichthey serve, and by custom they are generally required to be residentsof the ward from which they are chosen. The terms of councilmen varyfrom one to four years, two years being the average term. In thesmaller cities councilmen are usually unpaid, but in the largermunicipalities they receive a stated salary. 628. THE CITY COUNCIL: POWERS. --The typical American city issubservient to the state legislature, the powers of city governmentbeing enumerated in a charter received from the legislature. Theseenumerated powers have been rather narrowly interpreted by the courts. The council enjoys a measure of police power, which it may invoke toprotect the health and to further the well-being of the city'sinhabitants. The exercise of this police power, however, must notconflict with state law. The council has the power to levy taxes to defray expenses incurred inperforming municipal functions. State constitutions and legislatureslimit this power rather narrowly, however. Subject to a similarlimitation is the council's power to raise money through the issue ofbonds. City councils may act as the agents of the state government in mattersaffecting education and charitable relief. 629. THE CITY COUNCIL: PROCEDURE. --The city council meetsperiodically, generally weekly or bi-weekly. It determines its ownrules of procedure and keeps a journal. The committee system is usedfor the dispatch of business. Ordinances may be proposed by any memberof the council. After being introduced, ordinances are read by titleand are referred to the proper committee. A second and third readingat subsequent meetings are required. If the ordinance is approved by amajority of the council, it is signed by the presiding officer, andsent to the mayor. In many cities the mayor may veto any ordinancepassed by the council. In case of a veto the measure becomes law onlyif passed by a two thirds--in some cities three fourths or fourfifths--vote of the council. In those cities where the mayor has noveto power, the ordinance goes into effect immediately upon beingpassed by the council. 630. THE MAYOR. --In all cities where the mayor-council plan ofgovernment prevails, the chief executive officer is the mayor or chiefmagistrate. This officer is usually elected by popular vote, for aterm varying from one to four years. Usually the term is two years, though in New England a one-year term is more common. The mayor ispaid a salary which ranges from a few hundred dollars in the smallercities to several thousands of dollars in a number of the largermunicipalities. 631. THE MAYOR AND THE COUNCIL. --It is the duty of the mayor tocommunicate at least once a year to the city council a generalstatement of the administration and financial condition of thecity. The mayor may also recommend to the city council, in his annualmessage or otherwise, the passage of ordinances which he considersneedful. In smaller cities, and in a few of the larger municipalities, the mayor presides over the council and has a casting vote in case ofa tie, but in most of the larger cities he is not a member of thecouncil. In most cities he has the veto power. In many of the morerecent city charters, the mayor is given the power to veto separateitems in an appropriation bill, while approving the remainder of themeasure, just as some Governors may veto separate items inappropriations bills enacted by the state legislature. 632. ADMINISTRATIVE DUTIES OF THE MAYOR. --The mayor stands at the headof the city administration, but the extent of his control varies fromcity to city. In the last half century the decline in popular favor ofthe city council has been accompanied by a growing tendency to enlargethe administrative powers of the mayor. In many of the smaller citiesthe mayor is still little more than a presiding officer of thecouncil. In such cities subordinate executive officials are usuallychosen by popular vote or are appointed by the council. In othercities the mayor may appoint the chief administrative officials, subject to the consent of the council. In still other cities, including many of the larger municipalities, the mayor may bothappoint and remove the heads of the executive departments, withoutinterference on the part of the council. 633. OTHER ADMINISTRATIVE OFFICIALS. --Such highly complex andimportant matters as health, education, parks, charities, police, fireprotection, and public works are the concern of the numerousadministrative officials of the city. Administrative work is carriedon by two methods, first, the board system, in which such concerns asschools, public health, and police are managed by boards composed ofmembers of the city council; and second, single commissioners, who aremore or less under the control of the mayor. The board system hasproved less efficient than the single commissioner plan, andaccordingly there is a tendency to abandon the former for the latterplan. QUESTIONS ON THE TEXT 1. Describe the rapid growth of the American city. 2. What were the characteristics of the city in colonial times? 3. What were the distinguishing features of the American city between1775 and 1825? 4. What distinguishes municipal development between 1825 and 1850? 5. What problems became prominent in municipal development between1850 and 1875? 6. Outline the movement for municipal reform. 7. What are the three types of municipal government? 8. Describe the organization of the city council. 9. What are the chief powers of the city council? 10. Outline the making of an ordinance. 11. Discuss the term and salary of the mayor. 12. What is the relation of the mayor to the council? 13. What are the chief administrative duties of the mayor? 14. Name some other administrative officers. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter xxvii. 2. Guitteau, _Government and Politics in the United Stairs_, chapteriv. 3. Munro, _The Government of the United States_, chapter xlii. 4. Reed, _Form and Functions of American Government_, chapter xvi QUESTIONS ON THE REQUIRED READINGS 1. Define a city. (Guitteau, page 38. ) 2. What is the English prototype of the American city? (Guitteau, page39. ) 3. Under what three heads may the powers of the mayor be grouped?(Beard, page 591. ) 4. To what extent has the city council been shorn of its power?(Beard, pages 588-590. ) 5. What is the meaning of the phrase "municipal home rule"?(Guitteau, page 45. ) 6. What is meant by municipal democracy? (Beard, pages 597-598. ) 7. What is the Des Moines plan of city government? (Guitteau, page46. ) 8. Describe briefly the organization of the government of New York. (Reed, pages 197-198. ) 9. Summarize the functions of the American municipality. (Munro, pages602-615. ) 10. What is the extent of municipal ownership in the United States?(Munro, page 616. ) TOPICS FOR INVESTIGATION AND REPORT I 1. History of your municipality. 2. Present organization of your municipal government 3. The chief functions of your municipality. 4. Relation of your municipality to the state legislature. 5. Legislative power in your municipality. 6. The franchise-granting power in your municipality. II 7. The English borough. (Fairlie, _Municipal Administration_, chapteriv. ) 8. Historical development of the American city. (Munro, _TheGovernment of the United States_, chapter xl; Kimball, _State andMunicipal Government in the United States_, chapter xx. ) 9. Political consequences of city growth. (Gettell, _Readings inPolitical Science_, page 433. ) 10. Relation of city life to democracy. (Gettell, _Readings inPolitical Science_, page 436. ) 11. Evolution of municipal organization. (Munro, _The Government ofAmerican Cities_, chapter i. ) 12. Relation of the municipality to the state. (Munro, _The Governmentof American Cities_, chapter ii. ) 13. The voters of the city. (Munro, _The Government of AmericanCities_, chapter iii. ) 14. The mayor. (Munro, _The Government of American Cities_, chapterix; Fairlie, _Municipal Administration_, chapter xix. ) 15. The city council. (Munro, _The Government of American Cities_, chapter viii; Fairlie, _Municipal Administration_, chapter xvii. ) 16. Municipal administrative offices. (Munro, _The Government ofAmerican Cities_, chapter x; Fairlie, _Municipal Administration_, chapter xviii. ) 17. The needs of city government. (Gettell, _Readings in PoliticalScience_, pages 441-442. ) 18. The municipal government in action. (Bryce, _The AmericanCommonwealth_, vol. I, chapter li. ) 19. Municipal functions. (Munro, _The Government of the UnitedStates_, chapter xlii; James, _Local Government in the United States_, chapter vii. ) 20. Municipal finances. (Beard, _American City Government_, chapterv. ) 21. The franchise problem. (Beard, _American City Government_, chaptervii. ) 22. Municipal ownership as a political problem. (Beard, _American CityGovernment_, chapter viii. ) 23. The commission plan of municipal government. (Munro, _TheGovernment of the United States_, chapter xliii; see also any otherstandard text on American government. ) 24. The city manager plan of municipal government. (Munro, _TheGovernment of the United States_, chapter xliii; see also any otherstandard text on American government. ) FOR CLASSROOM DISCUSSION 25. Municipal ownership of public utilities in your community. 26. Are the municipalities of your state too narrowly restricted bythe state constitution and the state legislature? 27. The solution of the franchise problem. 28. Respective merits of the mayor-council plan, the commission plan, and the city manager plan, with particular reference to yourmunicipality. CHAPTER L RURAL LOCAL GOVERNMENT 634. TYPES OF RURAL LOCAL GOVERNMENT. --Rural local governments in theUnited States vary widely as between different sections of thecountry, but in general they are divisible into three types. Theseare: (a) the town type, so common in New England; (b) the county type, found chiefly in the South, the Southwest, andthe Far West; and (c) the mixed type of the Middle, Central, and Northwestern states. These three general types will be discussed in the order named. A. THE TOWN TYPE 635. NATURE OF THE TOWN. --The basis of rural local government in NewEngland is the town. [Footnote: The county exists in New England as anaggregation of towns. The county has acquired other functions, but itis still primarily a judicial district. ] In general the New Englandtown is an irregularly shaped area, varying in size from twenty toforty-five square miles. The area comprising the typical town isprimarily rural, and generally contains one or more villages. Althoughthe town is primarily a rural unit, the villages within its bounds maybe so populous as to be classed as cities. Yet these populouscommunities may, as in the case of Brookline, Massachusetts, retainthe town government. Other New England cities, such as New Haven andHartford, Connecticut, have continued the town organization separatefrom the city government. 636. ORIGIN OF THE TOWN. --Some authorities believe that the town typeof rural local government can be traced back through English historyto the early Teutonic tribes. Whether or not this is true, it iscertain that the principle is an ancient one, and that when NewEngland was first settled, the colonists grouped together in smallcompact communities, or towns, instead of scattering over largerareas. 637. WHY TOWN GOVERNMENT DEVELOPED IN NEW ENGLAND. --Several factorsare responsible for the tendency of the settlers of early New Englandto draw together in towns. From the economic point of view, the barrennature of the soil rendered extensive farms impracticable, while, onthe other hand, the opportunities for fishing and commerce encouragedsmall, compact settlements along the coast. The hostility of many ofthe New England Indians also discouraged sparse settlements andobliged the people to settle in close formation. Lastly, many of theNew England colonists came to the New World as groups or communitieswhich in their European homes had pivoted about a common church; inNew England these people naturally preferred to live very near oneanother. 638. TOWN GOVERNMENT. --The government of the New England town isvested in a town meeting, which consists of an annual session of thevoters of the town. At this meeting the voters enact laws governingsuch local matters as town finance, schools, police, and highways. Asecond important function of the town meeting is to choose the townofficers, including the selectmen, [Footnote: In Rhode Island theselectmen are known as the council. ] the town clerk, treasurer, constable, and others. The chief executive officers are the selectmen, varying in number from three to nine, and generally chosen for theterm of one year. The selectmen have general charge of town affairs, and act under authority conferred by statute or by the town meeting. The town clerk keeps the records, the treasurer has charge of thefunds of the town and sometimes audits accounts, while the constablekeeps the peace of the town, serves writs, and collects local taxes. In addition there are a number of minor officials, such as taxassessors, pound-keepers, guardians of the poor, highway officials, and library trustees. B. THE COUNTY TYPE 639. WHY COUNTY GOVERNMENT DEVELOPED IN THE SOUTH. --The system ofcounty government became as firmly intrenched in the Southern coloniesas did the concept of the town in early New England. Four factorsoperated to discourage town government, and to encourage countygovernment, in the South. First, the Southern colonists did not comein small family groups, as did the New Englanders, but rather asindividuals and from different classes of society. Second, the Indiansof the South were either weak or peaceful, so that fear of Indianattack did not oblige the colonists to congregate in small, compactcommunities. Third, the climate and soil of the South encouraged aplantation system which resulted in a sparse rather than in a compactpopulation. Fourth, the aristocratic type of society developing fromthe plantation and slave system prevented the rise of the democratictown meeting. 640. GOVERNMENT OF THE SOUTHERN COUNTY. --Though county government isalso found in the Southwest and Far West, it is seen in its purestform in the South. Here the county was originally a judicial district, or sometimes also a financial district to facilitate the collection oftaxes. The functions of the county have gradually increased until suchlocal affairs as schools, jails, poorhouses, and the maintenance ofroads and bridges are concerns of the Southern county. The chiefadministrative authority in the county is either the county court, ora small board of commissioners. In either case the administrativeauthority is chosen by popular vote. In addition there are a number ofminor officers such as the treasurer, tax assessor, and recorder, allof them chosen by popular vote for terms varying from one to fouryears. 641. GOVERNMENT OF THE FAR WESTERN COUNTY. --In the Far West, likewise, the most important unit of rural local government is the county. Thecounty is governed by a board, usually consisting of threecommissioners. In general the officers of the Far Western countyresemble those in the central states. (See Section 644. ) C. THE MIXED TYPE [Footnote: Sometimes called the township-countysystem. ] 642. ORIGIN OF THE MIXED TYPE. --The mixed type of rural localgovernment is a hybrid, the result of the incomplete fusion of thetown type with the county type. The northern parts of the Centralstates were settled largely by immigrants from New England, while thesouthern portions of the Middle West were settled by pioneers fromPennsylvania and the states south of the Ohio River. The New Englandimmigrants were used to town government, and endeavored to perpetuateit in their new home; the settlers from the South preferred the countyform of government, and sought its adoption in their new homes. Theresult was a compromise, some functions of rural local governmentbeing assigned to the county and some to the township. 643. THE TWO SUB-TYPES. --In the fusion of the town and county types ofgovernment the county system tended to predominate over the town ortownship form of government when settlers from the South were in themajority. In the northern section of the country, on the other hand, the compromise form tended to include a majority of the features ofthe town type. The result was the formulation of two sub-types. The first of these may be called the Pennsylvania sub-type, so namedbecause it originated in Pennsylvania, and then spread, withmodifications, to Ohio, Indiana, Kansas, Missouri, and other states. In these states the town or township authority is subordinated to thecounty government. There is no town meeting. The New York sub-type exists in typical form in New York, but is alsofound in New Jersey, Michigan, Illinois, Wisconsin, Minnesota, theDakotas, and other states. The town meeting is found in these states, and in five of them the townships are represented on the county board. 644. THE NEW YORK SUB-TYPE. --In states possessing the New York sub-type of rural local government, the town meeting is still important. This meeting is similar to the New England town meeting, though itexercises less authority. All the legal voters of the township arequalified to take part in this meeting, which is held annually and onspecial occasions. At this meeting are chosen township officers forthe following year. The most important of these are the supervisor, clerk, treasurer, assessor, and a varying number of constables andjustices of the peace. In addition to electing these and otherofficers, the town meeting enacts legislation with regard to suchlocal matters as bridges, roads, and schools. In some of the Central states general executive authority overtownship affairs is vested in a township board, while in other statesadministrative authority is divided between a township board of fromthree to eleven members, and a supervisor or trustee. Besides theseofficials, there are a number of minor officers, including a clerk, atreasurer, an assessor, overseers of the poor, constables, andjustices of the peace. The county board continues to exist under the New York plan, but it isfar less important than under the Pennsylvania sub-type. The functionsof the county board are similar in these two sub-types. 645. THE PENNSYLVANIA SUB-TYPE. --In those states in which thePennsylvania sub-type of rural local government prevails, generalcontrol of government is vested in a county board. This board iscomposed of three commissioners, who are elected by the voters of thecounty. In all of the Central states the county board possessesnumerous powers, but the powers of the board are greater under thePennsylvania than under the New York sub-type. Under the former planthe county board exercised four groups of powers: First, the levyingof taxes and the appropriation of local funds; second, the maintenanceof roads; third, poor-relief; and fourth, the supervision of localelections. Besides the members of the county board there are a number of othercounty officials. The chief executive officer of the county court isthe sheriff. The prosecuting attorney is an elective official, whoseduty it is to conduct criminal prosecutions, and to act as the legalagent of the county. The treasurer has charge of county funds, andsometimes supervises the collection of taxes. He is elected by thepeople, generally for a two-year term. The clerk or auditor is animportant county officer, as is the surveyor, the countysuperintendent of schools, and the recorder or register of deeds. 646. HOME RULE FOR COUNTIES. --Generally, county authorities arenarrowly limited by the state constitution and state statutes. Thishas always resulted in numerous appeals to the legislature for speciallegislation, and has lately given rise to a demand for home rule forcounties. In the effort to reduce the pressure for special laws in thelegislature, the Michigan constitution of 1908 provided for a measureof home rule for counties. The legislature is authorized to conferlegislative powers on the county boards, which may pass laws andordinances relative to purely local affairs, provided such enactmentsdo not conflict with state law, and provided, further, that suchenactments do not interfere with the local affairs of any township, incorporated city, or village within the limits of the county. Suchlaws may be vetoed by the Governor, but may be passed over his veto bya two-thirds vote of the county board. Another step toward home rulewas taken when in 1911 California by constitutional amendmentempowered counties to frame their own charters, and, on securingpopular approval, to put the same into effect. However, the charterthus framed and approved must first be sanctioned by the statelegislature. QUESTIONS ON THE TEXT 1. What are the three types of rural local government? 2. Discuss the nature of the town. 3. What is the origin of the town? 4. How is the town governed? 5. Why did county government develop in the rural South? 6. Outline the government of the southern county. 7. How did the mixed type of rural local government originate? 8. What two sub-types are included under the mixed type of rural localgovernment? 9. Compare briefly these two sub-types. 10. Discuss the nature of the movement to permit home rule tocounties. REQUIRED READINGS 1. Beard, _American Government and Politics_, chapter xxix. 2. Guitteau, _Government and Politics in the United States_, chapterii. 3. Munro, _The Government of the United States_, chapter xxxvii. 4. Reed, _Form and Functions of American Government_, chapter xviii. QUESTIONS ON THE REQUIRED READINGS 1. Summarize the relation of local institutions to state government. (Guitteau, page 15. ) 2. What factors are responsible for the decline of the town meeting inthe Middle West? (Beard, page 651. ) 3. Describe the early English county. (Guitteau, page 18. ) 4. What are the chief divisions of the county in the southern andwestern parts of the United States? (Reed, pages 222-223. ) 5. What are the sources of county government? (Reed, page 210. ) 6. What is a "town chairman"? (Reed, page 222. ) 7. What are the two types of county boards? (Beard, pages 640-641. ) 8. What is a parish? (Guitteau, page 21. ) 9. Why is there a growing demand that local institutions be placedunder the supervision of the state government? (Beard, pages 654-655. ) 10. What are the merits and defects of autonomy for rural localgovernments? (Munro, pages 544-545. ) TOPICS FOR INVESTIGATION AND REPORT I 1. Origin of local government in your section. 2. Development of rural local government in your community, or in someadjacent community. 3. The work of the tax assessor in rural local government. 4. Investigate the powers and duties of any other county, town, ortownship officer. II 5. Origin and development of rural local government in the UnitedStates. (James, _Local Government in the United States_, chapter ii;Kimball, _State and Municipal Government in the United States_, chapter xvi. ) 6. The New England town. (Fairlie, _Local Government in Counties, Towns and Villages_, pages 141-146. ) 7. Township government. (Fairlie, _Local Government in Counties, Townsand Villages_, pages 164-185. ) 8. General nature of county government. (Munro, _The Government of theUnited States_, chapter xxxviii. ) 9. The organization of county government. (James, _Local Government inthe United States_, chapter iii; Maxey, _County Administration_. ) 10. Functions of county government. (James, _Local Government in theUnited States_, chapter iv; Maxey, _County Administration_. ) 11. Financial administration in counties. (Maxey, _CountyAdministration_. ) 12. The administration of highways in counties. (Maxey, _CountyAdministration_. ) 13. Charitable and correctional institutions in the county. (Maxey, _County Administration_. ) 14. Politics in rural local government. (Beard, _American Governmentand Politics_, chapter XXX. ) 15. County home rule. (Gilbertson, _The County_, chapter xv. ) 16. City and county consolidation. (Maxey, _County Administration_. ) 17. New developments in county government. (James, _Local Government inthe United States_, chapter viii. ) 18. Rural local government in England. (Reed, _Form and Functions ofAmerican Government_, chapter xvii. ) 19. Rural local government in France. (James, _Local Government in theUnited States_, chapter i. ) FOR CLASSROOM DISCUSSION 20. The relative merits of the town, county, and mixed type of rurallocal government. 21. The problem of efficiency in rural local government in your state. 22. The problem of responsibility in rural local government in yourstate. 23. Should rural local governments in your state be allowed a greatermeasure of home rule? BIBLIOGRAPHY The following list contains all of the references that are mentionedin the text, either as required reading, or as the basis for suggestedtopic work. Special mention may be made here of Williamson's _Readingsin American Democracy_, prepared as a companion volume to the text, and published in 1922 by D. C. Heath & Co. In harmony with the general arrangement of the text material, thereferences in this list have been grouped under the folio wing heads:Historical, Economic, Social, and Political. 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Edie, Lionel D. _Current Social and Industrial Forces_. Boni andLiveright, New York. 1920. ** Ely, Richard T. _Outlines of Economics_. Macmillan, New York. 1918. ------. _Socialism, an Examination of its Nature, its Strength and itsWeakness_. Crowell, Boston. 1895. Fanning, C. E. _Selected Articles on the Conservation of NaturalResources_. Debaters' Handbook Series. H. W. Wilson Co. , Minneapolis. 1913. Fay, C. R. _Coöperation at Home and Abroad_. Macmillan, New York. 1910. ** Fetter, Frank A. _Modern Economic Problems_. Century Co. , New York. 1917. Fiske, Amos K. _The Modern Bank_. Appleton, New York. 1914. Ford, James. _Coöperation in New England_. New York. 1913. * George, Henry. _Progress and Poverty_. Doubleday, Page and Co, New York. 1916. Groat, George G. _An Introduction the Study of Organized Labor inAmerica_. Macmillan, New York. 1919. Hamilton, Walton H. _Current Economic Problems_. University of ChicagoPress, Chicago. 1915. Hammond, John Hays, and J. W. 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Addams, Jane. _The Spirit of Youth and the City Streets_. Macmillan, New York. 1909. Anderson, Wilbert Lee. _The Country Town_. Baker and Taylor Co. , NewYork. 1906. Antin, Mary. _The Promised Land_. Houghton Mifflin Co. , Boston. 1912. ------. _They Who Knock at Our Gates_. Houghton Mifflin Co. , Boston1914. * _Atlanta University Publications_. Atlanta University Press, Atlanta, Georgia. Bailey, Liberty Hyde. _The Training of Farmers_. Century Co. , NewYork. 1909. Baldwin, Simeon E. _The Relation of Education to Citizenship_. YaleUniversity Press, New Haven. 1912. Bloomfield, Meyer. _The Vocational Guidance of Youth_. HoughtonMifflin Co. , Boston. 1911. Bogardus, Emory S. _Essentials of Americanization_. University ofSouthern California, Press, Los Angeles. 1919. Booth, Maud Ballington. _After Prison--What?_ F. H. Revell Co. , NewYork 1903. * Bryce, James. _The Hindrances to Good Citizenship_. Yale UniversityPress, New Haven. 1919. ** Burch, Henry Reed, and S. W. Patterson. _American Social Problems_. Macmillan, New York. 1919. Butler, Elizabeth B. _Women and the Trades_. New York, 1909. Butler, Nicholas Murray. _The Meaning of Education, and Other Essays_. Macmillan, New York. 1905. Butterfield, Kenyon L. _The Country Church and the Rural Problem_. Chicago University Press, Chicago. 1911. * ------. _The Farmer and the New Day_. Macmillan, New York. 1919. Cabot, Richard C. _Social Work: Essays on the Meeting Ground of Doctorand Social Worker_. Houghton Mifflin Co. , Boston. 1919. Carney, Mabel. _Country Life and the Country School_. Row, Petersonand Co. , Chicago. 1912. ** Carver, Thomas Nixon. _Sociology and Social Progress_. Ginn andCo. , Boston. 1905. Cleveland, Frederick A. , and Joseph Schafer. _Democracy inReconstruction. _ Houghton Mifflin Company, Boston. 1919. Colcord, Joanna C. _Broken Homes: a Study of Family Desertion and itsSocial Treatment_. Russell Sage Foundation, New York. 1919. * Commons, John R. _Races and Immigrants in America_. Macmillan, NewYork. 1911. Conyngton, Mary. _How to Help. _ The Ronald Press, New York. 1906. Coolidge, Mary. _Chinese Immigration_. Henry Holt and Co. , New York. 1909. Cubberley, Ellwood P. _Changing Conceptions in Education_. HoughtonMifflin Co. , Boston. 1909. * ------. _Public Education in the United States_. Houghton MifflinCo. , Boston. 1919. Curtis, Henry S. _Education Through Play_. Macmillan, New York. 1915. Davenport, Eugene. _Education for Efficiency_. D. C. Heath Co. , Boston. 1909. Department of the Interior, Bureau of Education. _Bulletin 1919_, No. 77. _State Americanization_. Washington, D. C. 1920. * Devine, Edward T. _Misery and its Causes_. Macmillan, New York. 1909. * ------. _The Practice of Charity_. Dodd Mead and Co. , New York. 1904. * ------. _The Principles of Relief_. Macmillan, New York. 1904. * ------. _The Spirit of Social Work_. Charities PublicationCommittee, New York. 1912. Dewey, John. _Schools of To-morrow_. Dutton, New York. 1915. Dugdale, Richard L. _The Jukes, a Study in Crime, Pauperism, Diseaseand Heredity_. Putnam, New York. 1891. Eliot, Charles W. _Education for Efficiency_. Houghton Mifflin Co. , Boston. 1909. ** Ellwood, Charles A. _Sociology and Modern Social Problems_. American Book Co. , New York. 1919. Fisher, Irving. _Bulletin of the Committee of One Hundred on NationalHealth, being a Report on National Vitality, its Wastes andConservation. _ Government Printing Office, Washington, D. C. 1909. Galpin, Charles J. _Rural Life. Century Co. , New York. 1918. * George, William R. _The Junior Republic, its History and Ideals_. Appleton, New York. 1910. Gill, Charles O. , and Gifford Pinchot. _The Country Church_. Macmillan, New York. 1913. ** Gillette, John Morris. _Constructive Rural Sociology_. Sturgis andWalton, New York. 1913. Goddard, Henry H. _The Kallikak Family_. Macmillan, New York. 1912. * Goodsell, Willystine. _The Family as a Social and EducationalInstitution_. Macmillan, New York. 1915. Gulick, Charlotte E. _Emergencies_. Ginn and Co. , Boston. 1909. Gulick, Sidney L. _American Democracy and Asiatic Citizenship_. Chas. Scribner's Sons, New York. 1919. Hadley, Arthur T. _The Education of the American Citizen. _ Chas. Scribner's Sons, New York. 1902. * ------. _The Relation between Freedom and Responsibility in theEvolution of Democratic Government_. Chas. Scribner's Sons, New York. 1903. Hall, Herbert J. , and M. M. C. Buck. _Handicrafts for theHandicapped_. Moffat, Yard and Co. , New York. 1916. ** Hall, Prescott F. _Immigration, and its Effects on the United States. _Henry Holt and Co. , New York. 1906. Henderson, Charles Hanford. _What is it to be Educated_? HoughtonMifflin Co. , Boston. 1914. * Henderson, Charles Richmond. _An Introduction to the Study of theDependent, Defective and Delinquent Classes_. D. C. Heath and Co. , Boston. 1908. ------. _Modern Methods of Charity_. Macmillan, New York. 1904. * ------. _Modern Prison Systems_. Government Printing Office, Washington, D. C. 1903. Hutchinson, Woods. _Preventable Diseases. _ Houghton Mifflin Co. , Boston, 1909. * Jenks, Jeremiah, and W. Jett Lauck. _The Immigration Problem_. 4thedition. Funk and Wagnalls, New York. 1917. * Keller, Helen. _The Story of My Life. _ Doubleday, Page and Co. , NewYork. 1903. Kelley, Florence. _Some Ethical Gains through Legislation_. New York. 1905. King, Irving. _Education for Social Efficiency_. Appleton, New York. 1913. Leake, Albert H. _Industrial Education, Its Problems, Methodsand Danger_. Houghton Mifflin Co. , Boston. 1913. * Lee, Frederick S. _The Human Machine and Industrial Efficiency_. Longmans, Green and Co. , New York. 1918. ** Lewis, Burdette G. _The Offender and His Relations to Law andSociety. _ Harper and Bros. , New York. 1917. Lichtenberger, James P. _Divorce, a Study in Social Causation. _ NewYork. 1909. MacLean, Annie M. _Women Workers and Society_. McClurg, Chicago, 1916. * McMurry, Frank M. _How to Study and Teaching How to Study_. HoughtonMifflin Co. , Boston. 1909. ** Mangold, George B. _Problems of Child Welfare_. Macmillan, NewYork. 1914. Ogden, Henry Neely. _Rural Hygiene_. Macmillan, New York. 1911. Oliver, Thomas. _Diseases of Occupation, from the Legislative, Socialand Medical Points of View_. London. 1908. Osborne, Thomas Mott. _Society and Prisons. _ Yale University Press, New Haven. 1916. * Parsons, Frank. _Choosing a Vocation_. Houghton Mifflin Co. , Boston, 1909. ** Perry, Clarence A. _Wider Use of the School Plant_. CharitiesPublication Committee, New York. 1910. Queen, Stuart. _The Passing of the County Jail_. George BantaPublishing Co. , Menasha, Wis. 1920. * Riis, Jacob A. _The Battle with the Slum_. Macmillan, New York. 1902. Riis, Jacob A. _The Peril and the Preservation of the Home_. G. W. Jacobs Co. , Philadelphia. 1903. * Roberts, Peter. _The Problem of Americanization_. Macmillan, NewYork. 1920. * Rubinow, Isaac M. _Standards of Health Insurance_. Henry Holt & Co. , New York. 1916. Sargent, Dudley A. _Physical Education_. Ginn and Co. , Boston, 1906. ** Smith, Reginald Heber. _Justice and the Poor_. Carnegie Foundationfor the advancement of teaching, Bulletin No. 13, New York. 1919. * Smith, Richard Mayo. _Emigration and Immigration_. Chas. Scribner'sSons, New York. 1904. * Steiner, Edward A. _From Alien to Citizen_. F. H. Revell Co. , NewYork. 1914. * ------. _On the Trail of the Immigrant_. F. H. Revell Co. , New York. 1906. Steiner, Jessie F. _The Japanese Invasion_. Chicago, 1917. Storey, Moorfield. _Problems of To-day_. Houghton Mifflin Co. , Boston. 1920. Taylor, Joseph S. _A Handbook of Vocational Education_. Macmillan, NewYork. 1914. Tillinghast, Joseph A. _The Negro in Africa and America_. AmericanEconomic Association, New York. 1902. Tolman, Wm. H. _Hygiene for the Worker_. American Book Co. , New York. 1912. Tufts, James H. _The Real Business of Living_. Henry Holt and Co. , NewYork. 1918. ** Vogt, Paul L. _Introduction to Rural Sociology_. Appleton, NewYork. 1917. ** Warner, Amos G. _American Charities_. 3d edition. Crowell, NewYork. 1919. Washington, Booker T. _The Future of the American Negro_. Small, Maynard Co. , Boston. 1902. ------. _The Story of the Negro_. Doubleday, Page and Co. , New York. 1909. ** ------. _Tuskegee and its People, their Ideals and Achievements_. Doubleday, Page and Co. , New York. 1905. ** ------. _Up from Slavery_. Doubleday, Page and Co. , New York. 1901. Waugh, Frank A. _Rural Improvement_, etc. Orange Judd Co. , New York. 1914. Willcox, Walter F. _The Divorce Problem: a Study in Statistics_. NewYork. 1897. * Williamson, Thames Ross. I>Sociology of the American Negro_. ** Wines, Frederick H. _Punishment and Reformation_. Latest edition. * Wolfe, Albert. _Readings in Social Problems_. Ginn and Co. , Boston. 1916. Wood, Edith. _The Housing of the Unskilled Wage Earner_. Macmillan, New York. 1919. Woods, Arthur. _Crime Prevention_. Princeton University Press, Princeton. 1918. * Woods, Robert A. _Americans in Process_. Houghton Mifflin Co. , Boston. 1902. POLITICAL Beard, Charles A. _American Citizenship_. Macmillan, New York. 1917 ------. _American City Government_. Century Co. , New York. 1912. ** ------. _American Government and Politics_. Macmillan, New York. 1920. ------. _An Economic Interpretation of the Constitution of the UnitedStates_. Macmillan, New York. 1913. ------. _Readings in American Government and Politics_. Macmillan, NewYork. 1912. ------. _The Supreme Court and the Constitution_. Macmillan, New York. 1912. Beard, Charles A. , and Birl Schultz. _Documents on the State-wideInitiative, Referendum and Recall_. Macmillan, New York. 1912. Borgeaud, Charles. _Adoption and Amendment of Constitutions in Europeand America_. Macmillan, New York. 1895. * Brewer, David J. _American Citizenship_. Chas. Scribner's Sons, NewYork. 1907. Brooks, Robert C. _Corruption in American Politics and Life_. Dodd, Mead and Co. , New York. 1910. ** Bryce, James. _Modern Democracies_. 2 vols. Macmillan, New York. 1921. ** ------. _The American Commonwealth_. 2 vols. Macmillan, New York. 1914. Childs, Richard S. _Short Ballot Principles_. Houghton Mifflin Co. , Boston. 1911. ** Cleveland, Frederick H. , _Organized Democracy_. Longmans, Green andCo. , New York. 1913. * Cleveland, Frederick H. , and A. E. Buck. _The Budget and ResponsibleGovernment_. Macmillan, New York. 1920. Commons, John R. _Proportional Representation_. Macmillan, New York. 1907. Croly, Herbert. _The Promise of American Life_. Macmillan, New York. 1912. ** _Cyclopedia of American Government_. Edited by A. C. McLaughlin andA. B. Hart. 3 Vols. Appleton, New York. 1914. Dealey, James Q. _Growth of American State Constitutions from 1776 tothe End of the Year 1914_. Ginn and Co. , Boston. 1915 ** Dunn, ArthurWilliam. _The Community and the Citizen_. D. C. Heath and Co. , Boston. 1919. Fairlie, John A. _Local Government in Counties, Towns and Villages_. Century Co. , New York. 1906. ------. _Municipal Administration_. Macmillan, New York. 1906. ** ------. _The National Administration of the United States ofAmerica_. Macmillan, New York. 1905. Follett, Mary Parker. _The Speaker of the House of Representatives_. Longmans, Green and Co. , New York. 1904. Foltz, E. B. K. _The Federal Civil Service as a Career_. Putnam, NewYork. 1909. Ford, Henry Jones. _The Cost of Our National Government_. ColumbiaUniversity Press. New York. 1910. ** ------. _The Rise and Growth of American Politics_. Macmillan, NewYork. 1900. Forman, S. E. _The American Democracy_. Century Co. , New York. 1920. Gettell, Raymond G. _Introduction to Political Science_. Ginn and Co. , Boston. ------. _Problems in Political Evolution_. Ginn and Co. , Boston. * ------. _Readings in Political Science_. Ginn and Co. , Boston. 1911. Gilbertson, H. S. _The County_. National Short Ballot Organization. New York. 1917. Goodnow, Frank J. _Social Reform and the Constitution_. Macmillan, NewYork. 1911. ** Guitteau, William Backus. _Government and Politics in the UnitedStates_. Houghton Mifflin Co. , Boston. 1920. Haines, Charles G. _The American Doctrine of Judicial Supremacy_. Macmillan, New York. 1914. Hart, Albert Bushnell. _Practical Essays in American Government_. Longmans, Green & Co. , New York. Hinsdale, Mary L. _A History of the President's Cabinet_. Ann Arbor. 1911. Hoar, Roger S. _Constitutional Conventions_. Little, Brown & Co. , Boston. 1917. ** Holcombe, Arthur N. _State Government in the United States_. Macmillan, New York. 1916. Hughes, Charles Evans. _Conditions of Progress in DemocraticGovernment_. Yale University Press, New Haven. 1910. * _Illinois Constitutional Convention Bulletins_. Springfield, Illinois. 1920. ** _Illinois Efficiency and Economy Report_. Springfield, Illinois. 1915 ** James, Herman G. _Local Government in the Unites States_. Appleton, New York. 1921. * Jones, Chester L. _Readings on Parties and Elections in the UnitedStates_. Macmillan, New York. 1912. Kaye, Percy Lewis. _Readings in Civil Government_. Century Co. , NewYork. 1910. * Kimball, Everett. _State and Municipal Government in the UnitedStates_ Ginn and Co. , Boston. 1921. * ------. _The National Government of the United States. _ Ginn andCo. , Boston. 1919. Leacock, Stephen A. _Elements of Political Science_. Houghton MifflinCo. , Boston. 1913. ** Lowell, A. Lawrence. _Public Opinion and Popular Government_. Longmans, Green & Co. , New York. 1913. McCall, Samuel Walker. _The Business of Congress_, Columbia UniversityPress, New York. 1911. McKinley, Albert E. _The Suffrage Franchise in the Thirteen EnglishColonies in America_. Philadelphia. 1905. ** _Massachusetts Constitutional Convention Bulletins_. Boston, 1917. ** Mathews, John M. _Principles of State Administration_. Appleton, New York. 1917. Maxey, C. C. _County Administration_. Macmillan, New York. 1919. Merriam, Charles Edward. _American Political Ideas_. Macmillan, NewYork. 1920. ** Munro, William Bennett. _The Government of American Cities_. Macmillan, New York. 1920. ------. _The Government of European Cities_. Macmillan, New York. 1909 ** ------. _The Government of the United States_. Macmillan, New York1919. * ------. _The Initiative, Referendum and Recall_. Appleton, New York1913. Porter, Kirk. _A History of Suffrage in the United States_. Universityof Chicago Press, Chicago. 1918. ** Ray, P. Orman. _An Introduction to Political Parties and PracticalPolitics_ Chas. Scribner's Sons, New York. 1913. ** Reed, Thomas Harrison. _Form and Functions of American Government_World Book Co. , New York. 1917. * Reinsch, Paul S. _American Legislatures and Legislative Methods_. Century Co. , New York. 1913. ------. _Readings on American Federal Government_. Ginn and Co. , Boston, 1909. ------. _Readings on American State Government_. Ginn and Co. , Boston, 1911. Root, Elihu. _Addresses on Government and Citizenship_. HarvardUniversity Press, Cambridge. 1916. * Seymour, Charles. _How the World Votes_. 2 Vols. C. A. Nichols Co. , Springfield. 1918. Taft, William Howard. _Our Chief Magistrate and His Powers_. ColumbiaUniversity Press New York. 1916. Taft, William Howard. _Popular Government_. Yale University Press, NewHaven. 1914. * Woodburn, James Albert. _Political Parties and Party Problems in theUnited States_. Putnam, New York. 1914. Woodburn, James Albert, and T. F. Moran. _The Citizen and theRepublic_. Longmans, Green and Co. , New York. 1920. Young, James T. _The New American Government and its Work_. Macmillan, New York. 1915. CONSTITUTION OF THE UNITED STATES OF AMERICA We the people of the United States, in order to form a more perfectunion, establish justice, insure domestic tranquillity, provide forthe common defence, promote the general welfare, and secure theblessings of liberty to ourselves and our posterity, do ordain andestablish this CONSTITUTION for the United States of America, ARTICLE I SECTION I. All legislative powers herein granted shall be vested in aCongress of the United States, which shall consist of a Senate and aHouse of Representatives. SECT. II. 1. The House of Representatives shall be composed of memberschosen every second year by the people of the several States, and theelectors in each State shall have the qualifications requisite forelectors of the most numerous branch of the State Legislature. 2. No person shall be a Representative who shall not have attained tothe age of twenty-five years, and been seven years a citizen of theUnited States, and who shall not, when elected, be an inhabitant ofthat State in which he shall be chosen. 3. Representatives and direct taxes shall be apportioned among theseveral States which may be included within this Union, according totheir respective numbers, which shall be determined by adding to thewhole number of free persons, including those bound to service for aterm of years, and excluding Indians not taxed, three fifths of allother persons. The actual enumeration shall be made within three yearsafter the first meeting of the Congress of the United States, andwithin every subsequent term of ten years, in such manner as theyshall by law direct. The number of Representatives shall not exceedone for every thirty thousand, but each State shall have at least onerepresentative; and until such enumeration shall be made, the State ofNew Hampshire shall be entitled to choose three, Massachusetts eight, Rhode Island and Providence Plantations one, Connecticut five, NewYork six, New Jersey four, Pennsylvania eight, Delaware one, Marylandsix, Virginia ten, North Carolina five, South Carolina five, andGeorgia three. 4. When vacancies happen in the representation from any State, theExecutive authority thereof shall issue writs of election to fill suchvacancies. 5. The House of Representatives shall choose their Speaker and otherofficers; and shall have the sole power of impeachment. SECT. III. 1. The Senate of the United States shall be composed of twoSenators from each State, chosen by the legislature thereof, for sixyears; and each Senator shall have one vote. 2. Immediately after they shall be assembled in consequence of thefirst election, they shall be divided as equally as may be into threeclasses. The seats of the Senators of the first class shall be vacatedat the expiration of the second year, of the second class at theexpiration of the fourth year, and of the third class at theexpiration of the sixth year, so that one third may be chosen everysecond year; and if vacancies happen by resignation or otherwise, during the recess of the legislature of any State, the Executivethereof may make temporary appointments until the next meeting of thelegislature, which shall then fill such vacancies. 3. No person shall be a Senator who shall not have attained to the ageof thirty years, and been nine years a citizen of the United States, and who shall not, when elected, be an inhabitant of that State forwhich he shall be chosen. 4. The Vice-President of the United States shall be President of theSenate, but shall have no vote, unless they be equally divided. 5. The Senate shall choose their other officers, and also a President_pro tempore_, in the absence of the Vice-President, or when he shallexercise the office of President of the United States. 6. The Senate shall have the sole power to try all impeachments. Whensitting for that purpose, they shall be on oath or affirmation. Whenthe President of the United States is tried, the Chief Justice shallpreside: and no person shall be convicted without the concurrence oftwo thirds of the members present. 7. Judgment in cases of impeachment shall not extend further than toremoval from office, and disqualification to hold and enjoy any officeof honor, trust or profit under the United States: but the partyconvicted shall nevertheless be liable and subject to indictment, trial, judgment and punishment, according to law. SECT. IV. 1. The times, places and manner of holding elections forSenators and Representatives shall be prescribed in each State by thelegislature thereof; but the Congress may at any time by law make oralter such regulations, except as to the places of choosing Senators. 2. The Congress shall assemble at least once in every year, and suchmeeting shall be on the first Monday in December, unless they shall bylaw appoint a different day. SECT. V. 1. Each house shall be the judge of the elections, returnsand qualifications of its own members, and a majority of each shallconstitute a quorum to do business; but a smaller number may adjournfrom day to day, and may be authorized to compel the attendance ofabsent members, in such manner, and under such penalties, as eachhouse may provide. 2. Each house may determine the rules of its proceedings, punish itsmembers for disorderly behavior, and with the concurrence of twothirds, expel a member. 3. Each house shall keep a journal of its proceedings, and from timeto time publish the same, excepting such parts as may in theirjudgment require secrecy; and the yeas and nays of the members ofeither house on any question shall, at the desire of one fifth ofthose present, be entered on the journal. 4. Neither house, during the session of Congress, shall, without theconsent of the other, adjourn for more than three days, nor to anyother place than that in which the two houses shall be sitting. SECT. VI. 1. The Senators and Representatives shall receive acompensation for their services, to be ascertained by law and paid outof the treasury of the United States. They shall in all cases excepttreason, felony and breach of the peace, be privileged from arrestduring their attendance at the session of their respective houses, andin going to and returning from the same; and for any speech or debatein either house, they shall not be questioned in any other place. 2. No Senator or Representative shall, during the time for which hewas elected, be appointed to any civil office under the, authority ofthe United States, which shall have been created, or the emolumentswhereof shall have been increased, during such time; and no personholding any office under the United States shall be a member of eitherhouse during his continuance in office. SECT. VII. 1. All bills for raising revenue shall originate in theHouse of Representatives; but the Senate may propose or concur withamendments as on other bills. 2. Every bill which shall have passed the House of Representatives andthe Senate, shall, before it become a law, be presented to thePresident of the United States; if he approve he shall sign it, but ifnot he shall return it with his objections to that house in which itshall have originated, who shall enter the objections at large ontheir journal, and proceed to reconsider it. If after suchreconsideration two thirds of that house shall agree to pass the bill, it shall be sent, together with the objections, to the other house, bywhich it shall likewise be reconsidered, and, if approved by twothirds of that house, it shall become a law. But in all such cases thevotes of both houses shall be determined by yeas and nays, and thenames of the persons voting for and against the bill shall be enteredon the journal of each house respectively. If any bill shall not bereturned by the President within ten days (Sundays excepted) after itshall have been presented to him, the same shall be a law, in likemanner as if he had signed it, unless the Congress by theiradjournment prevent its return, in which case it shall not be a law. 3. Every order, resolution, or vote to which the concurrence of theSenate and House of Representatives may be necessary (except on aquestion of adjournment) shall be presented to the President of theUnited States; and before the same shall take effect, shall beapproved by him, or being disapproved by him, shall be repassed by twothirds of the Senate and House of Representatives, according to therules and limitations prescribed in the case of a bill. SECT. VIII. The Congress shall have power 1. To lay and collect taxes, duties, imposts, and excises, to pay thedebts and provide for the common defence and general welfare of theUnited States, but all duties, imposts and excises shall be uniformthroughout the United States; 2. To borrow money on the credit of the United States; 3. To regulate commerce with foreign nations, and among the severalStates, and with the Indian tribes; 4. To establish an uniform rule of naturalization, and uniform laws onthe subject of bankruptcies throughout the United States; 5. To coin money, regulate the value thereof, and of foreign coin, andfix the standard of weights and measures; 6. To provide for the punishment of counterfeiting the securities andcurrent coin of the United States; 7. To establish post offices and post roads; 8. To promote the progress of science and useful arts by securing forlimited times to authors and inventors the exclusive right to theirrespective writings and discoveries; 9. To constitute tribunals inferior to the Supreme Court; 10. To define and punish piracies and felonies committed on the highseas and offences against the law of nations; 11. To declare war, grant letters of marque and reprisal, and makerules concerning captures on land and water; 12. To raise and support armies, but no appropriation of money to thatuse shall be for a longer term than two years; 13. To provide and maintain a navy; 14. To make rules for the government and regulation of the land andnaval forces; 15. To provide for calling forth the militia to execute the laws ofthe Union, suppress insurrections, and repel invasions; 16. To provide for organizing, arming and disciplining the militia, and for governing such part of them as may be employed in the serviceof the United States, reserving to the States respectively theappointment of the officers, and the authority of training the militiaaccording to the discipline prescribed by Congress; 17. To exercise exclusive legislation in all cases whatsoever, oversuch district (not exceeding ten miles square) as may, by cession ofparticular States, and the acceptance of Congress, become the seat ofgovernment of the United States, and to exercise like authority overall places purchased by the consent of the legislature of the State, in which the same shall be, for the erection of forts, magazines, arsenals, dock-yards, and other needful buildings;--and 18. To make all laws which shall be necessary and proper for carryinginto execution the foregoing powers, and all other powers vested bythis Constitution in the government of the United States, or in anydepartment or office thereof. SECT. IX. 1. The migration or importation of such persons as any ofthe States now existing shall think proper to admit shall not beprohibited by the Congress prior to the year 1808; but a tax or dutymay be imposed on such importation, not exceeding $10 for each person. 2. The privilege of the writ of _habeas corpus_ shall not besuspended, unless when in cases of rebellion or invasion the publicsafety may require it. 3. No bill of attainder or _ex post facto_ law shall be passed. 4. No capitation, or other direct, tax shall be laid, unless inproportion to the census or enumeration herein before directed to betaken. 5. No tax or duty shall be laid on articles exported from any State. 6. No preference shall be given by any regulation of commerce orrevenue to the ports of one State over those of another: nor shallvessels bound to, or from, one State, be obliged to enter, clear, orpay duties in another. 7. No money shall be drawn from the treasury, but in consequence ofappropriations made by law; and a regular statement and account of thereceipts and expenditures of all public money shall be published fromtime to time. 8. No title of nobility shall be granted by the United States: and noperson holding any office of profit or trust under them, shall, without the consent of the Congress, accept of any present, emolument, office, or title, of any kind whatever, from any king, prince, orforeign state. SECT. X. 1. No State shall enter into any treaty, alliance, orconfederation; grant letters of marque and reprisal; coin money; emitbills of credit; make anything but gold and silver coin a tender inpayment of debts; pass any bill of attainder, _ex post facto_ law, orlaw impairing the obligation of contracts, or grant any title ofnobility. 2. No State shall, without the consent of the Congress, lay anyimposts or duties on imports or exports, except what may be absolutelynecessary for executing its inspection laws: and the net produce ofall duties and imposts, laid by any State on imports or exports, shallbe for the use of the treasury of the United States; and all such lawsshall be subject to the revision and control of the Congress. 3. No State shall, without the consent of Congress, lay any duty oftonnage, keep troops, or ships of war in time of peace, enter into anyagreement or compact with another State, or with a foreign power, orengage in war, unless actually invaded, or in such imminent danger aswill not admit of delay. ARTICLE II SECTION I. 1. The executive power shall be vested in a President ofthe United States of America. He shall hold his office during the termof four years, and together with the Vice-President, chosen for thesame term, be elected as follows: 2. Each State shall appoint, in such manner as the legislature thereofmay direct, a number of electors, equal to the whole number ofSenators and Representatives to which the State may be entitled in theCongress; but no Senator or Representative, or person holding anoffice of trust or profit under the United States, shall be appointedan elector. [The electors shall meet in their respective States, and vote byballot for two persons, of whom one at least shall not be aninhabitant of the same State with themselves. And they shall make alist of all the persons voted for, and of the number of votes foreach; which list they shall sign and certify, and transmit sealed tothe seat of government of the United States, directed to the Presidentof the Senate. The President of the Senate shall, in the presence ofthe Senate and House of Representatives, open all the certificates, and the votes shall then be counted. The person having the greatestnumber of votes shall be the President, if such number be a majorityof the whole number of electors appointed; and if there be more thanone who have such majority, and have an equal number of votes, thenthe House of Representatives shall immediately choose by ballot one ofthem for President; and if no person has a majority, then from thefive highest on the list the said house shall in like manner choosethe President. But in choosing the President the votes shall be takenby States, the representation from each State having one vote; aquorum for this purpose shall consist of a member or members from twothirds of the States, and a majority of all the States shall benecessary to a choice. In every case, after the choice of thePresident, the person having the greatest number of votes of theelectors shall be the Vice-President. But if there should remain twoor more who have equal votes, the Senate shall choose from them byballot the Vice-President. ] 3. The Congress may determine the time of choosing the electors, andthe day on which they shall give their votes; which day shall be thesame throughout the United States. 4. No person except a natural born citizen, or a citizen of the UnitedStates, at the time of the adoption of this Constitution, shall beeligible to the office of President; neither shall any person beeligible to that office who shall not have attained to the age ofthirty-five years, and been fourteen years a resident within theUnited States. 5. In case of the removal of the President from office or of hisdeath, resignation, or inability to discharge the powers and duties ofthe said office, the same shall devolve on the Vice-President, and theCongress may by law provide for the case of removal, death, resignation, or inability, both of the President and Vice-President, declaring what officer shall then act as President, and such officershall act accordingly, until the disability be removed, or a presidentshall be elected. 6. The President shall, at stated times, receive for his services, acompensation, which shall neither be increased nor diminished duringthe period for which he shall have been elected, and he shall notreceive within that period any other emolument from the United States, or any of them. 7. Before he enters the execution of his office, he shall take thefollowing oath or affirmation:--"I do solemnly swear (or affirm) thatI will faithfully execute the office of President of the UnitedStates, and will to the best of my ability, preserve, protect anddefend the Constitution of the United States. " SECT. II. 1. The President shall be commander in chief of the army andnavy of the United States, and of the militia of the several States, when called into the actual service of the United States; he mayrequire the opinion, in writing, of the principal officer in each ofthe executive departments, upon any subject relating to the duties oftheir respective offices, and he shall have power to grant reprievesand pardons for offences against the United States, except in cases ofimpeachment. 2. He shall have power, by and with the advice and consent of theSenate, to make treaties, provided two thirds of the Senators presentconcur; and he shall nominate, and by and with the advice and consentof the Senate, shall appoint ambassadors, other public ministers andconsuls, judges of the Supreme Court, and all other officers of theUnited States, whose appointments are not herein otherwise providedfor, and which shall be established by law: but the Congress may bylaw vest the appointment of such inferior officers, as they thinkproper, in the President alone, in the courts of law, or in the headsof departments. 3. The President shall have power to fill up all vacancies that mayhappen during the recess of the Senate, by granting commissions whichshall expire at the end of their next session. SECT. III. He shall from time to time give to the Congress informationof the state of the Union, and recommend to their consideration suchmeasures as he shall judge necessary and expedient; he may, onextraordinary occasions, convene both houses, or either of them, andin case of disagreement between them, with respect to the time ofadjournment, he may adjourn them to such time as he shall thinkproper; he shall receive ambassadors and other public ministers; heshall take care that the laws be faithfully executed, and shallcommission all the officers of the United States. SECT. IV. The President, Vice-President and all civil officers of theUnited States, shall be removed from office on impeachment for, and onconviction of, treason, bribery, or other high crimes andmisdemeanors. ARTICLE III SECTION I. 1. The judicial power of the United States shall be vestedin one Supreme Court, and in such inferior courts as Congress may fromtime to time ordain and establish. The judges, both of the Supreme andinferior courts, shall hold their offices during good behavior, andshall, at stated times, receive for their services, a compensation, which shall not be diminished during their continuance in office. SECT. II. I. The judicial power shall extend to all cases, in law andequity, arising under this Constitution, the laws of the UnitedStates, and treaties made or which shall be made, under theirauthority;--to all cases affecting ambassadors, other public ministersand consuls;--to all cases of admiralty jurisdiction;--tocontroversies to which the United States shall be a party;--tocontroversies between two or more States;--between a State andcitizens of another State;--between citizens of different States;--between citizens of the same State claiming lands under grants ofdifferent States, and between a State, or the citizens thereof, andforeign states, citizens or subjects. 2. In all cases affecting ambassadors, other public ministers andconsuls, and those in which a State shall be a party, the SupremeCourt shall have original jurisdiction. In all the other cases beforementioned, the Supreme Court shall have appellate jurisdiction, bothas to law and fact, with such exceptions, and under such regulationsas the Congress shall make. 3. The trial of all crimes, except in cases of impeachment, shall beby jury; and such trial shall be held in the State where the saidcrimes shall have been committed; but when not committed within anyState, the trial shall be at such place or places as the Congress mayby law have directed. SECT. III. 1. Treason against the United States shall consist only inlevying war against them, or in adhering to their enemies, giving themaid and comfort. No person shall be convicted of treason unless on thetestimony of two witnesses to the same overt act, or on confession inopen court. 2. The Congress shall have power to declare the punishment of treason, but no attainder of treason shall work corruption of blood, orforfeiture except during the life of the person attainted. ARTICLE IV SECTION I. Full faith and credit shall be given in each State to thepublic acts, records, and judicial proceedings of every other State. And the Congress may by general laws prescribe the manner in whichsuch acts, records, and proceedings shall be proved, and the effectthereof. SECT. II. 1. The citizens of each State shall be entitled to allprivileges and immunities of citizens in the several States. 2. A person charged in any State with treason, felony, or other crime, who shall flee from justice, and be found in another State, shall ondemand of the executive authority of the State from which he fled, bedelivered up, to be removed to the State having jurisdiction of thecrime. 3. No person held to service or labor in one State, under the lawsthereof, escaping into another, shall, in consequence of any law orregulation therein, be discharged from such service or labor, butshall be delivered up on claim of the party to whom such service orlabor may be due. SECT. III. I. New States may be admitted by the Congress into thisUnion; but no new State shall be formed or erected within thejurisdiction of any other State; nor any State be formed by thejunction of two or more States, or parts of States, without theconsent of the legislatures of the States concerned as well as of theCongress. 2. The Congress shall have power to dispose of and make all needfulrules and regulations respecting the territory or other propertybelonging to the United States; and nothing in this Constitution shallbe so construed as to prejudice any claims of the United States, or ofany particular State. SECT. IV. The United States shall guarantee to every State in thisUnion a republican form of government, and shall protect each of themagainst invasion; and on application of the legislature, or of theexecutive (when the legislature cannot be convened) against domesticviolence. ARTICLE V The Congress, whenever two thirds of both houses shall deem itnecessary, shall propose amendments to this Constitution, or, on theapplication of the legislatures of two thirds of the several States, shall call a convention for proposing amendments, which, in eithercase shall be valid to all intents and purposes, as part of thisConstitution, when ratified by the legislatures of three fourths ofthe several States, or by conventions in three fourths thereof, as theone or the other mode of ratification may be proposed by the Congress;provided that no amendments which may be made prior to the year onethousand eight hundred and eight shall in any manner affect the firstand fourth clauses in the ninth section of the first article; and thatno State, without its consent, shall be deprived of its equal suffragein the Senate. ARTICLE VI 1. All debts contracted and engagements entered into, before theadoption of this Constitution, shall be as valid against the UnitedStates under this Constitution, as under the Confederation. 2. This Constitution, and the laws of the United States which shall bemade in pursuance thereof; and all treaties made, or which shall bemade, under the authority of the United States, shall be the supremelaw of the land; and the judges in every State shall be bound thereby, anything in the Constitution or laws of any State to the contrarynotwithstanding. 3. The Senators and Representatives before mentioned, and the membersof the several State legislatures, and all executive and judicialofficers, both of the United States and of the several States, shallbe bound by oath or affirmation, to support this Constitution; but noreligious test shall ever be required as a qualification to any officeor public trust under the United States. ARTICLE VII The ratification of the conventions of nine States, shall besufficient for the establishment of this Constitution between theStates so ratifying the same. Done in Convention by the unanimous consent of the States present, theseventeenth day of September in the year of our Lord one thousandseven hundred and eighty-seven and of the Independence of the UnitedStates of America the twelfth. In witness whereof we have hereuntosubscribed our names. [Signed by] Gº WASHINGTON Presidt and Deputy from Virginia ARTICLES IN ADDITION TO AND AMENDMENT OF THE CONSTITUTION OF THEUNITED STATES OF AMERICA, PROPOSED BY CONGRESS, AND RATIFIED BY THELEGISLATURES OF THE SEVERAL STATES, PURSUANT TO THE FIFTH ARTICLE OFTHE ORIGINAL CONSTITUTION [Footnote: The first ten Amendments wereadopted in 1791. ] ARTICLE I. Congress shall make no law respecting an establishment ofreligion, or prohibiting the free exercise thereof; or abridging thefreedom of speech, or of the press; or the right of the peoplepeaceably to assemble, and to petition the government for a redress ofgrievances. ARTICLE II. A well-regulated militia, being necessary to the securityof a free State, the right of the people to keep and bear arms, shallnot be infringed. ARTICLE III. No soldier shall, in time of peace be quartered in anyhouse without the consent of the owner, nor in time of war, but in amanner to be prescribed by law. ARTICLE IV. The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches andseizures, shall not be violated, and no warrants shall issue but uponprobable cause, supported by oath or affirmation, and particularlydescribing the place to be searched, and the persons or things to beseized. ARTICLE V. No person shall be held to answer for a capital, orotherwise infamous crime, unless on a presentment or indictment of agrand jury except in cases arising in the land or naval forces, or inthe militia, when in actual service in time of war or public danger;nor shall any person be subject for the same offence to be twice putin jeopardy of life or limb; nor shall be compelled in any criminalcase to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall privateproperty be taken for public use without just compensation. ARTICLE VI. In all criminal prosecutions the accused shall enjoy theright to a speedy and public trial, by an impartial jury of the Stateand district wherein the crime shall have been committed, whichdistrict shall have been previously ascertained by law, and to beinformed of the nature and cause of the accusation; to be confrontedwith the witnesses against him; to have compulsory process forobtaining witnesses in his favour, and to have the assistance ofcounsel for his defence. ARTICLE VII. In suits at common law, where the value in controversyshall exceed twenty dollars, the right of trial by jury shall bepreserved, and no fact tried by a jury shall be otherwise re-examinedin any court of the United States, than according to the rules of thecommon law. ARTICLE VIII. Excessive bail shall not be required, nor excessivefines imposed, nor cruel and unusual punishments inflicted. ARTICLE IX. The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by thepeople. ARTICLE X. The powers not delegated to the United States by theConstitution, nor prohibited by it to the States, are reserved to theStates respectively, or to the people. ARTICLE XI. The judicial power of the United States shall not beconstrued to extend to any suit in law or equity, commenced orprosecuted against one of the United States by citizens of anotherState, or by citizens or subjects of any foreign state. [Adopted in1798. ] ARTICLE XII. The electors shall meet in their respective States, andvote by ballot for President and Vice-President, one of whom, atleast, shall not be an inhabitant of the same State with themselves;they shall name in their ballots the person voted for as President, and in distinct ballots the person voted for as Vice-President, andthey shall make distinct lists of all persons voted for as President, and of all persons voted for as Vice-President, and of the number ofvotes for each, which lists they shall sign and certify, and transmitsealed to the seat of government of the United States, directed to thePresident of the Senate;--the President of the Senate shall, in thepresence of the Senate and House of Representatives, open all thecertificates and the votes shall then be counted;--the person havingthe greatest number of votes for President shall be the President, ifsuch number be a majority of the whole number of electors appointed;and if no person have such majority, then from the persons having thehighest numbers not exceeding three on the list of those voted for asPresident, the House of Representatives shall choose immediately, byballot, the President. But in choosing the President, the votes shallbe taken by States, the representation from each State having onevote; a quorum for this purpose shall consist of a member or membersfrom two thirds of the States, and a majority of all the States shallbe necessary to a choice. And if the House of Representatives shallnot choose a President whenever the right of choice shall devolve uponthem, before the fourth day of March next following, then the Vice-President shall act as President, as in the case of the death or otherconstitutional disability of the President. --The person having thegreatest number of votes as Vice-President, shall be the Vice-President, if such number be a majority of the whole number ofelectors appointed, and if no person have a majority, then from thetwo highest numbers on the list, the Senate shall choose the Vice-President; a quorum for the purpose shall consist of two thirds of thewhole number of Senators, and a majority of the whole number shall benecessary to a choice. But no person constitutionally ineligible tothe office of President shall be eligible to that of Vice-President ofthe United States. [Adopted in 1894. ] ARTICLE XIII. Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have beenduly convicted, shall exist within the United States, or any placesubject to their jurisdiction. Section 2. Congress shall have power to enforce this article byappropriate legislation. [Adopted in 1865. ] ARTICLE XIV. Section 1. All persons born or naturalized in the UnitedStates, and subject to the jurisdiction thereof, are citizens of theUnited States and of the State wherein they reside. No State shallmake or enforce any law which shall abridge the privileges orimmunities of citizens of the United States; nor shall any Statedeprive any person of life, liberty, or property, without due processof law; nor deny to any person within its jurisdiction the equalprotection of the laws. Section 2. Representatives shall be apportioned among the severalStates according to their respective numbers, counting the wholenumber of persons in each State, excluding Indians not taxed. But whenthe right to vote at any election for the choice of Electors forPresident and Vice-President of the United States, Representatives inCongress, the executive and judicial officers of a State, or themembers of the legislature thereof, is denied to any of the maleinhabitants of such State, being twenty-one years of age and citizensof the United States, or in any way abridged, except for participationin rebellion, or other crime, the basis of representation thereinshall be reduced in the proportion which the number of such malecitizens shall bear to the whole number of male citizens twenty-oneyears of age in such State. Section 3. No person shall be a Senator or Representative in Congress, or Elector of President and Vice-President, or hold any office, civilor military, under the United States, or under any State, who, havingpreviously taken an oath, as a member of Congress, or as an officer ofthe United States, or as a member of any State legislature, or as anexecutive or judicial officer of any State, to support theConstitution of the United States, shall have engaged in insurrectionor rebellion against the same, or given aid or comfort to the enemiesthereof. But Congress may by a vote of two thirds of each house, remove such disability. Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensionsand bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any Stateshall assume or pay any debt or obligation incurred in aid ofinsurrection or rebellion against the United States, or any claim forthe loss or emancipation of any slave; but all such debts, obligations, and claims shall be held illegal and void. Section 5. The Congress shall have power to enforce by appropriatelegislation the provisions of this article. [Adopted in 1867. ] ARTICLE XV. Section 1. The right of citizens of the United States tovote shall not be denied or abridged by the United States or any Stateon account of race, color, or previous condition of servitude. Section 2. The Congress shall have power to enforce this article byappropriate legislation. [Adopted in 1870. ] ARTICLE XVI. The Congress shall have power to lay and collect taxes onincomes, from whatever source derived, without apportionment among theseveral States, and without regard to any census or enumeration. [Adopted in 1913. ] ARTICLE XVII, Section 1. The Senate of the United States shall becomposed of two Senators from each State, elected by the peoplethereof, for six years; and each Senator shall have one vote. Theelectors in each State shall have the qualifications requisite forelectors of the most numerous branch of the State Legislatures. Section 2. When vacancies happen in the representation of any State inthe Senate, the executive authority of such State shall issue writs ofelection to fill such vacancies: Provided that the Legislature of anyState may empower the executive thereof to make temporary appointmentsuntil the people fill the vacancies by election as the Legislature maydirect. Section 3. This amendment shall not be so construed as to affect theelection or term of any Senator chosen before it becomes valid as partof the Constitution. [Adopted in 1913. ] ARTICLE XVIII. Section 1. After one year from the ratification of thisarticle the manufacture, sale, or transportation of intoxicatingliquors within, the importation thereof into, or the exportationthereof from, the United States and all territory subject to thejurisdiction thereof for beverage purposes is hereby prohibited. Section 2. The Congress and the several States shall have concurrentpower to enforce this article by appropriate legislation. Section 3. This article shall be inoperative unless it shall have beenratified as an amendment to the Constitution by the legislatures ofthe several States, as provided by the Constitution, within sevenyears from the date of the submission hereof to the States by theCongress. [Adopted in 1919. ] ARTICLE XIX. Section 1. The right of citizens of the United States tovote shall not be denied or abridged by the United States or by anyState on account of sex. Section 2. The Congress shall have power to enforce this article byappropriate legislation.