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by Thames Ross Williamson
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Title: Problems in American Democracy
Author: Thames Ross Williamson
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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, offering
opportunities for personal achievement and pointing the way to
national progress._
TO
My Mother
WHOSE NAME APPEARS IN NO HALL OF FAME, BUT WHOSE LIFE IS AN UNBROKEN
RECORD OF SERVICE TO HER HOME AND TO HER COUNTRY [Blank Page]
PREFACE
There is an increasing demand for a textbook which will bring the
student into direct contact with the great current issues of American
life, and which will afford practical training to those who soon must
grapple with the economic, social, and political problems of our own
time. It is with the hope of meeting such a demand that this text has
been prepared.
The plan of the book calls for a word of explanation. It is poor
pedagogy to expect the student to attack the defects of American life,
and at the same time to place in his hands a book which deals
predominantly with the mechanism of government. As well send a boy to
a hardware store to buy tools before he is told whether he is to make
a mouse-trap or a boat. Furthermore, to spend much more time on the
mechanism of government than on the actual problems of democracy is a
mistake in emphasis. Government is a means, not an end. It is a tool
by means of which we attack and solve our problems.
Therefore the student of this text begins, not with the mechanism of
government, but with the historical background of American democracy,
its origin, development, and promise for the future. Following this is
a brief survey of the economic life of the nation, because that
economic life constitutes the fundamental basis of our problems.
Considerable space has been devoted to a problem growing directly out
of economic conditions, _i.e._ the question of social justice or
industrial reform. This is the most pressing question before any
modern people, but strangely enough one which heretofore has been
neglected by our schools.
Because they tend to arise primarily from a bad economic situation,
such social problems as industrial relations, health in industry, and
immigration are next considered. From social problems the text passes
to the economic and social functions of government, and thence to the
question of making government effective. The mechanism of government
has been placed last, and for the reason already given, _i.e._ because
a knowledge of the framework of government is valuable only after the
citizen knows something of the needs which that mechanism must be made
to fill.
It has not been easy to compress into a single volume the most
important of our national problems. Obviously, a rigid selection has
been necessary. In this selection the aim has been to discuss the more
important issues of American life, whether economic, social, or purely
political. In dealing with these issues, the attempt has been made to
keep in mind the student's previous preparation; on the other hand,
the civic demands which the future will make upon him have not been
ignored. Some of the problems are difficult, but they are also of
vital importance. Very shortly the student will be confronted, in his
everyday activities, with such puzzling matters as socialism, the
control of immigration, and taxation reform. If the school does not
prepare him to grapple with these questions intelligently, he can only
partially fulfill the obligations of citizenship.
Throughout the text the aim has been to go directly to the heart of
the problem under consideration. The student is not burdened with a
mass of data which would prove confusing, and which would be out of
date before he is out of school. Instead, an effort has been made to
outline, first the essential nature of the problem, and second the
fundamental principles which affect its solution. Care has been taken
to cultivate the problem attitude, and to encourage the spirit of
independent investigation and open-minded judgment on the part of the
student.
It goes without saying that the success of this book will depend
largely upon the use which the teacher makes of it. The text aims to
supply the basic facts and the fundamental principles involved in
specific problems, but the teacher must interpret many of those facts
and principles, and ought, in addition, to furnish illustrative
material. The book is not intended to be an encyclopedia, but rather a
suggestive guide.
The text covers the fundamentals of three distinct fields: economics,
sociology, and government. Sufficient reference and topic work is
offered to enable teachers to expand the text along particular lines.
Thus Part II might serve as a nucleus around which to build up a
special course in economics, while Part III would serve as a basis for
a similar course in applied sociology, if for some reason it were not
feasible to take up other parts of the book.
Though the text is the result of the coöperative efforts of a
considerable number of specialists, its treatment of the problems of
American life is neither dogmatic nor arbitrary. The effort has been
to treat all of our problems sanely and hopefully, but at the same
time to make it clear that many of these questions are still unsettled
and the best method of disposing of them is yet hotly debated. This
fact has strongly influenced the manner in which the problems have
been treated.
TOPICS AND READINGS
Following each chapter are suggestions for work to supplement the
text. These suggestions are of six kinds, and are intended to meet a
variety of needs.
A number of easy questions on the text is first supplied.
Following these is a number of required readings to supplement each
chapter of the text. The student may be asked to read a single chapter
from Williamson's _Readings in American Democracy_, collected and
arranged so as to furnish in compact form and in a single volume
supplementary material which otherwise the teacher would have to find
in a number of separate books. In case the use of the _Readings_ is
not feasible, some or all of the alternative required readings may be
available.
The required readings are followed by a number of questions thereon.
Questions on the material contained in Williamson's _Readings in
American Democracy_ will be found at the end of each chapter in that
volume; questions on the required readings cited as alternative to
this 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 a
link between the text and the everyday experience of the student on
the one hand, and between the activities of the student's local
community and national problems on the other. The student is called
upon, for example, to investigate the attitude of the local press
toward controversial questions, or to examine the administration of
local charitable relief. Topic work of this sort not only quickens the
interest of the student, but it encourages original investigation and
independent thought. It lets the student know what is going on in his
community, and it informs individuals and institutions beyond the
school that this agency is beginning to connect with the problems of
the municipality, state, and nation. This sort of topic work also
allows the student to test the accuracy of the text, and to interpret
local conditions in the light of broad, national tendencies.
The second group of topics contains material for report work. In the
case of practically all of these topics, the student is referred
specifically to books and other publications.
Beginning with Chapter XVIII of the text, the topics are followed by a
series of questions for classroom discussion. Some of these may be
turned into classroom debates. Others allow the student to challenge
statements in the text. A few of these questions have never been
satisfactorily answered by anyone, yet the student must face them in
the world outside the school, and it cannot be time wasted to
understand their content now.
ACKNOWLEDGMENTS
In the preparation of this text the author has received valuable
assistance from a number of sources. Though such assistance in no way
diminishes his responsibility for the shortcomings of the book, the
author desires here to acknowledge the aid extended him.
The entire manuscript has been carefully worked over and criticized by
Clarence D. Kingsley, Chairman of the Commission on the Reorganization
of Secondary Education. Payson Smith, Commissioner of Education for
the State of Massachusetts offered valuable suggestions in connection
with certain parts of the manuscript. The thanks of the author are
also due to L. L. Jackson Assistant Commissioner of Education for the
State of New Jersey.
Invaluable aid has been received from numerous members of the faculty
of Harvard University. Parts of the text were read and criticized by
A. 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. Hanson
offered valuable suggestions in connection with the historical
chapters.
In the Department of Economics, helpful criticisms were contributed by
Professors 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 and
Dr. Mixter.
Various chapters dealing with social problems were read and criticized
by Professors Richard Cabot, James Ford, R. F. Foerster, and Dr. Niles
Carpenter of the Department of Socials Ethics, as well as by Dr. John
M. Brewer of the Department of Education. Substantial aid was received
from Professors W. B. Munro, A. B. Hart, and A. N. Holcombe; and from
Dr. A. C. Hanford, in the preparation of the chapters on political
problems.
Professor Edwin R. A. Seligman of the Department of Economics, and
Professor Lindsay Rogers of the Department of Government, in Columbia
University, contributed helpful suggestions.
Professor Irving Fisher of Yale College read and criticized some of
the material on economic subjects. Professor John L. Silberling at
Dartmouth College went over the chapters dealing with the economic
problems and pointed out numerous opportunities for their improvement.
Professor Frederick A. Cleveland of Boston University read the
chapters on political problems. Professor Abbott P. Usher of the
Department of Economic History helped with several of the chapters,
while Professor Ernest R. Groves of the same institution kindly
criticized the chapter on Rural Life.
Henry Lefavour, President of Simmons College, and Sara H. Stites, Dean
of the same institution, read various of the chapters on economic and
social problems.
Stuart Queen, Director of the Boston School for Social Workers, read
the chapters on social problems, and strengthened especially the
chapter 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 of
the Department of History, and to Professors Esther Lowenthal, Julius
Drachsler, Harriette M. Dilla, and to Miss McMasters, of the
Department of Economics and Sociology.
At Amherst College the author is under great obligations to Professor
J. W. Crook of the Department of Economics, and to Dr. John M. Gaus of
the Department of Government.
At the Massachusetts Agricultural College the author is indebted to
Kenyon L. Butterfield, President, and to Professor Newell L. Sims, for
help on the chapters dealing with social problems.
A number of teachers in the West kindly helped with various portions
of the book. At the University of Wisconsin the author is under
obligations to Professors John R. Commons and Donald D. Lescohier of
the Department of Economics.
A. S. Roberts of the University of Illinois read various of the
historical chapters.
At the University of Iowa, the author is especially grateful for the
help of Professor F. E. Horack of the Department of Government.
Professor Charles Ellwood of the University of Missouri read and
criticized the Chapter on the Family.
Especially valuable were the suggestions which Professor James E. Le
Rossignol of the University of Nebraska offered with respect to the
Chapters on Socialism.
At Leland Stanford University the author acknowledges his obligations
to Professor Eliot Jones of the Department of Economics.
In the United States Department of State, the author is indebted to
Arthur N. Young for a critical reading of the Chapter on Single Tax.
In the United States Department of Labor, the author is under
obligations to John B. Andrews for many suggestions on the Chapter on
Industrial 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 at
Vineland, N. J., kindly read and criticized several of the chapters on
social problems.
Edward T. Devine of New York City offered valuable suggestions with
regard 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 the
suggestions 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, went
over 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 supplied
advance figures on the 1920 Census.
The author is also indebted to Houghton Mifflin Company, Ginn and
Company, and the Macmillan Company, either for advance information on
certain of their new books, or for permission slightly to adapt some
of the material appearing in books copyrighted by them.
Lastly, the author is grateful to his wife for valuable assistance in
correcting 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 to
nations that have made substantial contributions to civilization. By
civilization is meant a well-rounded and highly developed culture, or,
to say the same thing in different words, an advanced state of
material and social well-being.
Civilization is so vast and so many-sided that it may receive
contributions in very diverse forms. The invention of the hieroglyphic
system of writing is among the leading achievements of ancient Egypt,
but the art and literature of Greece have been no less conspicuous in
the onward sweep of human progress. The promotion of the science of
navigation by the Phoenicians, and the development of law and
architecture by Rome, illustrate a few of the forms in which peoples
may confer marked benefits upon the world. The advancement of music
and painting by Italy, France, and other European nations, and the
application and expansion of the idea of parliamentary government by
England, are further examples of ways in which nations may earn for
themselves the title of greatness.
2. THE CONDITIONS OF NATIONAL GREATNESS.--In order that a nation may
become 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 that
nation's control must be encouraging to man's honest, helpful efforts.
[Footnote: As used in this chapter the term "land" is held to include
not only such natural resources as soil, minerals, forests, and bodies
of water, but climate as well.] The vigorous Scandinavians have made
great advances in inhospitable Iceland and Greenland, the French have
reclaimed an important section of Algeria, and the British have worked
wonders with some of the barren parts of Australia; nevertheless, it
is with great difficulty that prosperous communities are developed in
lands relatively barren of natural resources, or unusually severe in
climate.
A high and stable civilization has rarely arisen in the tropics,
because there the overabundance of Nature renders sustained work
unnecessary, while the hot, enervating climate tends to destroy
initiative and ambition. It is no accident that the greatest nations
of modern times are located chiefly within the stimulating temperate
zones, where Nature is richly endowed, but where, too, her treasures
are rarely bestowed upon those who do not struggle consistently for
them.
The second condition of national greatness is an intelligent and
industrious population, willing to abide by the law, and devoted to
the building of homes. The combination of an unpromising land and an
inferior population effectually prevents the rise of a high
civilization. And just as the choicest of men can do relatively little
in an unfriendly land, so the most promising of countries may be
despoiled or temporarily ruined by a slothful or lawless population.
From the standpoint of civilization, the best results are obtained
when a virile and law-abiding people exercise control over a land rich
in natural resources and possessed of a stimulating climate. France
and Great Britain in Europe, and Canada and the United States in North
America, are examples of great nations which have been built up in
such lands and by such peoples.
3. THE ATTRACTIVENESS OF NORTH AMERICA.--It will be interesting to
examine North America in the light of the two conditions of national
greatness discussed in the preceding section. We may note, first of
all, that by far the greater part of the territory now comprising the
United States and Canada is distinctly favorable to settlement. This
territory lies almost entirely within the temperate zone: it has
unattractive spots, but in general it is neither so barren of
resources as to discourage the home-maker, nor so tropical in its
abundance as to reward him without his putting forth considerable
effort. Particularly within the bounds of the United States is a well-
balanced national life encouraged by the diversity of soils and the
wide variety of climate. [Footnote: For a fuller discussion of the
natural resources of the United States, see Chapter VI.] Certainly the
continent of North America fulfills the first condition of national
greatness.
4. THE COMING OF THE EUROPEAN.--The discovery of America in 1492
opened a new era in world history. The nations of western Europe were
disappointed when their earlier explorers found the way to Cathay
blocked by a new land-mass, but the Spanish discovery of treasure in
Mexico and South America soon turned disappointment into keen
interest. No magic palaces or spice islands were found, but there were
revealed two virgin continents inviting colonial expansion on a scale
previously unknown. Of the European powers which at various times laid
claim to parts of the New World, Spain, France, Holland, and England
occupy significant positions in the background of American democracy.
We may briefly notice the influence of each of these four powers upon
America.
5. SPAIN.--Though the Spanish were the first in the field, the motives
of the colonists limited their ultimate success in the new land. The
earlier Spaniards were missionaries and treasure-seekers, rather than
home builders and artisans. The early discovery of great quantities of
gold and silver had the effect of encouraging the continued search for
treasure. In this treasure-quest, often fruitless, the Spanish
practically confined themselves to Mexico and the region to the south.
In these areas they did valuable work in Christianizing and educating
the natives, but little industrial progress was made. Except for the
missionary work of the Spanish, their earlier colonization was largely
transient and engaged in for the purpose of exploitation.
6. FRANCE.--France disputed the claim of Spain to North America soon
after the opening of the sixteenth century. The French attempted to
settle in Florida and in South Carolina, but the opposition of the
near-by Spanish forced the newcomers to leave. In 1524 Verrazano
explored the North Atlantic coast for the French, and ten years later
Cartier sailed up the St. Lawrence and founded the claim of France to
that section of the New World.
Following the example of Spain, France dispatched missionaries to the
New World to convert the Indians. Soldiers and trappers were sent out
to develop the valuable fur trade by the establishment of widely
separated forts and trading posts. But the French settlers had no
popular lawmaking bodies, being completely under the power of the
king. Only along the St. Lawrence, where agricultural colonies were
planted, did the French really attach themselves to the soil.
Elsewhere there were few French women and therefore few normal French
homes, and when in 1763 all of the French possessions east of the
Mississippi were ceded to England, it was largely true that the French
colonies had not yet taken root in the country. Infinite courage,
devotion, and self-sacrifice were ultimately wasted, largely because
of the lack of homes, the absence of self-government, and the failure
to develop an industrial basis of colonization.
7. HOLLAND.--The Dutch became aware of the commercial possibilities of
the New World when in 1609 Henry Hudson discovered the river which
bears his name. Trading posts were soon established in the
neighborhood, and in 1621 the West India Company was given full
authority to plant colonies in New Netherland. A brisk trade in furs
developed, but though the Company grew rich, the colonists were not
satisfied. The agriculturists along the Hudson had the benefit of a
fertile soil and a genial climate, but they operated their farms under
a feudal land system which allowed an overlord to take most of their
surplus produce. Moreover, the Dutch governors were autocratic, and
the settlers had little voice in the government of the colony. Loyalty
to Holland waned as the Dutch saw their English neighbors thriving
under less restrictive laws and a more generous land system, so that
when in 1664 the colony passed into the possession of the English, the
majority of the settlers welcomed the change.
8. ENGLAND.--The Spanish had been in the New World a century before
the English made any appreciable impression upon the continent of
North America. In 1583 Sir Humphrey Gilbert had made an unsuccessful
attempt to found a colony on the coast of Newfoundland, and a few
years later Sir Walter Raleigh's venture at Roanoke Island proved
equally disastrous. Colonization was retarded until 1588, in which
year England's defeat of the Spanish Armada destroyed the sea power of
her most formidable rival. The English may be said to have made
serious and consistent attempts at colonization only after this event.
Like France, England desired to set herself up as a successful
colonizing rival of Spain. Impelled by this motive, the earlier
English adventurers sought treasure rather than homes. But the high
hopes of the early English joint stock companies were not justified.
Those who had looked to America for treasure were disappointed: no
gold was forthcoming, and such groups as the Jamestown settlers of
1607 very nearly perished before they learned that America's treasure-
house could be unlocked only by hard work. In spite of heavy
investments and repeated attempts at colonization, these first
ventures were largely failures.
9. THE COMING OF THE HOME-MAKER.--It may truly be said that the seeds
of national greatness were not planted in America until home-making
succeeded 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 her
colonies a large measure of self-government, but it is significant
that these colonies made little progress so long as they were
dominated by joint stock companies intent upon exploitation. It was
only when individuals, and groups of individuals, settled
independently of the companies that the colonies began to thrive. The
first really tenacious settlers on the Atlantic seaboard were groups
of families who were willing to brave the dangers of an unknown land
for the sake of religious freedom, economic independence, and a large
share of self-government. It was with the coming of these people that
our second condition of national greatness was fulfilled.
10. GROWTH OF THE ENGLISH COLONIES.--The English annexation of New
Netherland in 1664, and the concessions of the French in 1763, left
the English in undisputed possession of the greater part of the
Atlantic seaboard. The English colonies in this area grew with
astonishing rapidity. Cheap land, religious freedom, and the privilege
of self-government attracted settlers from all parts of northern
Europe. At the close of the seventeenth century there were 260,000
English subjects in North America; in 1750 there were approximately
1,000,000; and in 1775 there were probably 3,000,000.
Although in most sections the dominant element was of English
extraction, other nationalities contributed to the population. Along
the Delaware, Swedes were interspersed with the English, while in
Pennsylvania there were large groups of Germans. Numerous Dutch
settlers had continued to live along the Hudson after New Netherland
had passed into English hands. Some of the most frugal and industrious
of the settlers of Georgia and South Carolina were French Huguenots,
while along the seaboard and inland the Scotch-Irish were found
scatteringly in agriculture and trade. Such was the composition of the
people who were destined to begin an unexampled experiment in
democracy, an experiment upon the successful termination of which
rests 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 may
become 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 in
America?
6. What were the chief defects of the Dutch colonial system in
America?
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 Atlantic
seaboard?
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 i
and 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 and
Cushing, 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, page
30.)
9. What were the chief economic motives of colonization? (Bogart,
pages 31-34.)
10. Why did the English finally prevail in the struggle for the
Atlantic seaboard? (Coman, pages 19-21.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Check up your own experience carefully in order to determine during
what season of the year you work most effectively. What light does
your answer throw upon Topic 5?
2. To what extent is the climate of your section favorable to an
energetic life? To what extent, if to any, is it discouraging to
initiative and ambition?
3. Trace the influence of the geography of your section upon the
economic life of your community.
4. The nature of civilization.
II
5. Relation of civilization to climate. (Huntington, _Civilization and
Climate,_ 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 European
descent. (Bullock, _Selected Readings in Economics,_ pages 1-22.)
9. The influence of the Appalachian barrier upon American colonial
history. (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 an
agency through which the purposes of a state or nation are formulated
and carried out. This agency develops where men live in groups. One of
the chief objects of government is to adjust individual interests, or,
to say the same thing in slightly different words, to control members
of the group in their social relations.
Where groups are small and culture is at a low level, government may
consist in little more than the arbitrary rules of a self-appointed
chieftain. From this stage there are numerous gradations up to the
great complex governments of the leading nations of to-day. With the
origin and general development of government we are not here
concerned, and we may accordingly confine our attention to those types
of modern government which throw light upon the development of
American democracy.
12. THE ABSOULUTE MONARCHY.--An absolute monarchy may be defined as a
government in which supreme power or sovereignty is lodged in one
individual. This monarch holds his position for life, generally with
hereditary succession. Often the absolute monarchy arose out of the
ancient chieftainship, when, as the result of territorial expansion
and cultural development, the chief of a group of tribes became the
king of a settled and civilized people. The absolute monarchy existed
in most of the countries of Europe previous to the end of the
eighteenth century. In its most extreme form the absolute monarchy
rested 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 of
Louis XIV is one of the best known examples of a modern nation ruled
by a "divine right" monarch.
13. THE LIMITED MONARCHY.--When a monarch has been restricted in his
powers a limited or constitutional monarchy is said to exist. Almost
always the establishment of a limited monarchy has been preceded by a
series of struggles between king and people. In many cases these
struggles have been precipitated or intensified by the monarch's abuse
of power. A striking example is offered by English history. As the
result of his arbitrary rule, King John was in 1215 obliged to sign
the Magna Charta, by which act he gave up many important powers. The
limits thus set upon the kingly power were affirmed and extended by
the Petition of Right of 1628 and by the Bill of Rights of 1689. A
similar limiting process has gone on in other countries, either by the
framing of constitutions, or by the enlargement of the powers of
legislatures, or by both methods. To-day the absolute monarchy is
practically unknown among civilized nations.
14. THE REPUBLIC.--The republic is a form of government in which
ultimate power or sovereignty resides with the people as a whole
rather than with a single individual. Instead of a monarch there is
generally an elective president, with varying powers. The republic is
a very old form of government, but in the republics of Greece, Rome
and Venice the powers of government were exercised by a class composed
of a small minority of the people. In modern republics a larger
proportion of the adult population participates in government.
A republic may arise in any one of several ways, but most of the
republics of modern times have grown out of monarchical conditions,
either directly or indirectly. Our republic arose as a reaction
against English monarchy, while the French republic came into being as
the result of the destruction of a monarchical government. Most of the
republics of Latin America date from the throwing off of the Spanish
yoke in the first half of the nineteenth century. More recently, the
World War has given rise to a number of European republics, composed
of peoples formerly under the control of monarchical governments.
15. DEMOCRACY AS A POLITICAL IDEA.--The term democracy is derived from
two Greek words which taken together mean "control by the people."
Strictly speaking, democracy is a _form_ of government only where a
small group governs itself directly, _i.e.,_ without making use of the
representative device. This "pure" democracy, such as existed in the
early New England town, becomes a representative democracy, or a
republic, when a greater population and an increasing political
complexity 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 of
government. The present government of Great Britain, for example, is
technically a limited monarchy, yet the gradual extension of popular
control has made it one of the most democratic governments in the
world. Nevertheless, the modern republic is so generally associated
with the democratic movement that many authorities speak of a
democracy as identical with a republic. For the time being we may use
the term democracy to describe a form of government in which
considerable 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 why
democracy developed early in America.
The first is to be found in the conditions of pioneer life in the
colonies. The wilderness forced self-government upon the settlers.
Clearing the forests, subduing the Indians, and conquering animal foes
was stern work, which weeded out the indolent and inefficient, and
rewarded the capable and self-reliant. Pioneer conditions did not
encourage a cringing or submissive spirit, but fostered independence
and individualism. The spirit of equality tended to become a dominant
feature of American life, for despite the existence of social classes,
the great majority of the population had to rely for their living upon
their own efforts. Under such conditions self-reliance and self-
government were natural developments.
The selected character of the colonists is a second reason for the
rise of democracy in America. Restless spirits who had chafed under
the restraints of monarchy in Europe, thronged to the new land. Once
here they often found the older American communities intolerant, and
so struck out into the wilderness to found new and, to them, more
democratic 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 brought
with them very definite ideas as to the rights of man. The concessions
granted by the Magna Charta were made an essential part of their
political philosophy. The belief that all men were born free and
equal, and that government derives its just powers from the consent of
the governed, became prominent in early American politics. Where the
democratic tendencies of the settlers were reinforced by such
traditions, an oppressive government could not last. In Carolina in
1670, for example, an attempt to set up an undemocratic government
failed, and when half a century later a similar attempt was made in
Georgia, the settlers objected so ardently that the founders of the
colony were obliged to grant the privilege of self-government.
A fourth explanation of the rise of democracy in America is that, left
to themselves, the settlers came to feel that self-government was
morally right. Largely removed from the traditions of monarchy, they
soon realized the elemental significance of government. Seeing
government as a device to help people get along together, they
concluded that that government is best which most helps the masses of
the people. The existence of a British monarch was a small factor in
the everyday life of the early settlers, and from this it was a short
step to asserting that his control over them was unjust. Living under
primitive economic conditions, the minds of the people turned
naturally 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 of
early American life, and partly because England was busy with European
politics, the settlers were left relatively free to work out their
ideas of democracy. The Pilgrims had not yet set foot upon the new
land when they drew up the Mayflower Compact, by the terms of which
they agreed to establish a pure democracy in their new home. In 1639
the inhabitants of three Connecticut towns came together in a mass
meeting, and drew up the Connecticut Fundamental Orders, which many
authorities regard as the first written constitution in this country.
Aside from the fact that the Orders created a small republic in the
heart of the wilderness, they are of importance because they issued
directly 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 grouped
themselves in small, compact communities known as towns, the freemen
coming together in the town meeting for the purpose of passing laws
and 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 of
representative government appeared very early in English history,
expressing itself most clearly in the houses of Parliament. The
principle was early transplanted to America, for in 1619 we find the
London Company establishing in Virginia a House of Burgesses, the
first representative assembly in the New World. The representative
democracy spread rapidly through the colonies, in many cases replacing
the pure democracy as a form of local government. In Massachusetts
Bay, for example, the population of the colony became so dispersed,
and the complexity of its government so great, that it was necessary
for most freemen to remain at home, and to content themselves with
choosing a small number of individuals to represent their interests.
These representatives gathered in the General Court and transacted the
business of the colony.
19. THE SEPARATION OF POWERS.--As government develops in scope and
complexity, there is a tendency for the agents of government to
specialize in various types of work. A more or less recognizable
separation 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 the
government of the English colonies in America. There was established
in each colony a legislative branch for the enactment of laws, an
executive branch to see that the laws were enforced, and a judicial
branch for the interpretation of the laws. This separation of
functions was more definite in America than in England because the
jealousy existing between colonial legislature and colonial executive
tended sharply to separate their powers. In America, too, the
judiciary was more clearly an independent branch of government than in
England.
20. THE COLONIES AS SELF-GOVERNING STATES.--It has often been said
that for a considerable period prior to the American Revolution, the
thirteen colonies were in reality self-governing states. For most
practical purposes they were independent, indeed, some American
patriots insisted that they were only nominally subject to England. In
each colony there was an assembly chosen by a restricted number of
voters. This popular assembly championed the cause of the colonists
against the governor, who in most of the colonies was primarily an
agent of the Crown. After the middle of the eighteenth century, the
struggles between assembly and governor increased in number and in
intensity, and victory rested more and more often with the assembly.
[Footnote: For the similarities existing among the various colonial
governments see Chapter XXXIX.]
21. EFFECT OF THE REVOLUTION UPON AMERICAN GOVERNMENTS.--The
Revolution did not greatly affect the character of American
governments. Democracy, at first weak and ill diffused, had been
spreading steadily during the preceding century, and when at last the
break with England came, it found the states trained in self-
government and able to conduct their own affairs. In many cases the
Revolution simply erased the name of the king from documents and
institutions already American in spirit and character. The states
either retained their old charters as constitutions, as in the case of
Connecticut and Rhode Island, or framed new constitutions based upon
the experience of colonial government. The popular legislative
assembly was everywhere retained. The common law of England continued
in force, and the system of courts was retained in practically its
pre-Revolution form. The basis of state government had been laid long
before the Revolution, the new states simply accepting the basic
political principles with which they, as colonies, had long been
familiar. The defeat of English claims was only an incident in the
irresistible 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 its
relation to the monarchy and to the republic.
8. What are the four reasons for the rise of democracy in early
America?
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, pages
4-5.)
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 movement
away 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 and
development of a club or society of which you are a member, or with
which you are familiar.
2. Early pioneer life in your community, with
particular reference to social and economic conditions. (Consult local
histories, or, where possible, interview an old settler in your
section.)
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 the
basis of their democratic character.
II
6. Genesis of the limited monarchy. (White, _The Making of the English
Constitution,_ pages 253-285.)
7. Origin and development of Parliament. (White, _The Making of the
English Constitution,_ pages 298-322.)
8. Origin and development of the English judiciary. (White, _The
Making 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, _Modern
Democracies,_ 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, _The
Frontier in American History,_ chapter ix.)
14. Development of the General Court in Massachusetts. (Osgood, _The
American Colonies in the Seventeenth Century,_ vol. i, pages 141-166.)
15. A Boston town meeting. (Beard, _Readings in American Government
and Politics,_ pages 11-13.)
16. Local government in Virginia. (Bruce, _Economic History of
Virginia 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 American
Revolution proved that the colonies were so deeply attached to
democracy that they were willing to fight for it. But the spirit which
animated the Revolution was local, rather than national. The colonial
protests which in 1776 reached their climax in the Declaration of
Independence, had to do almost entirely with the rights of the
colonies as individual states, and with the determination of those
states to defend the principle of self-government. The war created
thirteen practically independent states, among which the spirit of
state sovereignty was much stronger than was the inclination to form
an indissoluble union. The Revolution emphasized local and state
interests rather than intercolonial coöperation, and however much the
colonists appreciated local democracy in 1776, they had yet to learn
to think in terms of a national patriotism. A brief review of the
attempts at union before 1787 will serve to illustrate this important
point.
23. EARLY ATTEMPTS AT UNION.--The first notable attempt at union was
made in 1643, when Massachusetts Bay, Plymouth, Connecticut, and New
Haven formed a league, chiefly for the purpose of mutual defense. This
league was in force for forty years, and rendered effective service in
the Indian wars.
In 1754 delegates from seven of the colonies met at Albany and adopted
a plan of union proposed by Benjamin Franklin. The plan provided for a
colonial army, the control of public lands, legislation affecting the
general welfare, and the levying of taxes for intercolonial projects.
In America Franklin's plan was regarded with considerable favor, but
it was never given serious consideration by the British Parliament.
The project fell through.
Still later (1765) delegates from nine of the colonies met in the
Stamp Act Congress, for the purpose of drawing up a protest against
the taxation policy of the mother country.
The two continental congresses may also be regarded as steps toward
union. The first of these met in 1774 and concerned itself chiefly
with 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 the
sectional feeling of that era as the history of the Articles of
Confederation. The Articles were adopted by the Second Continental
Congress in 1777, but on account of the tardiness with which some of
the states ratified them, they were not put into actual operation
until March 1, 1781. By the terms of the Articles the states yielded
some of their powers, the central government being given the right to
declare war, borrow and coin money, establish post offices, and
otherwise act for the general good. On the other hand, the Articles
declared that "each state retains its sovereignty, freedom and
independence, and every power, jurisdiction, and right which is not by
this 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 no
national executive, and no judiciary. All authority was concentrated
in a one-chambered congress, in which each state was represented by
not fewer than two and not more than seven members. The delegates were
subject to recall by the legislatures of their respective states. Each
state had one vote, which was determined by a majority of the state's
delegates who were present when the vote was taken.
25. DEFECTS OF THE CONFEDERATION GOVERNMENT.--The government
established by the Articles of Confederation had a number of grave
defects. The fundamental difficulty was that the central government
had no real authority or power. The Congress of the Confederation
could reach individuals only through the action of the state
governments, and these it could not coerce. Thus the Congress could
declare war, and make requisitions upon the states for troops, but it
could not enlist a single soldier. It could make laws, but had no
power to enforce them. It could make treaties with foreign
governments, but could not oblige the states to respect those
agreements. The central government could not levy taxes, but was
obliged to accept whatever sums the states chose to contribute. The
Confederation government could not even protect itself, or the states,
against violence. It lacked force, and without the ability to exert
force, a government is a government in name only.
Not only did the central government fail to enlist the respect and
support of the states, but it could not induce the states to respect
or support one another. Congress had no power to regulate either
foreign or domestic commerce, each state being free to control the
commercial activities of its citizens as it saw fit In many cases the
states engaged in trade wars, that is, they levied heavy duties upon
the commerce of one another, or even refused to allow their citizens
to buy goods from, or sell goods to, persons in neighboring states.
Matters calling for unity of action and friendly coöperation, such as
roads and canals, were ignored or neglected because of interstate
jealousy. Whereas they should have united against the grave dangers of
the period immediately following the war, the states often wasted time
and energy in controversy and strife.
26. FAILURE OF THE CONFEDERATION GOVERNMENT.--The Confederation
government, established in 1781, functioned weakly during the
remaining two years of the war, and then declined rapidly in power and
influence. The defects of the Articles could not be remedied, for
amendment was by unanimous consent only, and on every occasion that an
amendment was proposed, one or more states refused their assent.
According to John Fiske, the five years following the peace of 1783
constituted the most critical period in the history of the American
people. Business was demoralized. Most of the states were issuing
worthless paper money, and several of them passed laws impairing the
obligation of contracts. In a movement known as Shay's Rebellion
(1786-1787), a portion of the debtor class of Massachusetts attempted
to prevent the collection of debts. Paper money depreciated so greatly
that in many places it ceased to pass as currency. The central
government could not raise money to meet its ordinary expenses, and in
1783 Congress was forced to flee Philadelphia to escape the wrath of
some eighty Pennsylvania soldiers whom it could not pay.
Demoralization and civil strife at home were matched by ridicule and
suspicion abroad. Congress could not pay the interest on the national
debt. As early as 1783 our foreign credit was gone. Many European
statesmen scoffed at the American government. France denied the
existence of a general government in America. In England our
diplomatic representatives suffered numerous humiliations. They were
told, for example, that the British would not relinquish the western
forts promised us by the Treaty of Paris until our national government
was able to force the several American states to observe the treaty.
27. OBSTACLES TO UNION.--There are three important reasons why the
states failed to draw together into a firm union before 1787.
In the first place, each state considered itself a sovereign body, and
of 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, and
maintained in spite of their protests. The Dominion of New England,
which, prior to the adoption of the Articles of Confederation, had
been the nearest approach to union, was recalled with anger and in
fear. This plan, forced upon the Americans in 1686 by the king, united
eight of the colonies under the rule of Governor Andros. The union was
dissolved by the Bloodless Revolution of 1688, but the arbitrary rule
of Andros was long cited by the Americans as proof of the despotic
character of any government beyond that of the individual states.
A second explanation of the failure of the states to unite before 1787
is to be found in the social and economic differences existing among
the states. Most of the inhabitants of New England were grouped in
small, compact communities, and were engaged in shipbuilding and
commerce, rather than in agriculture. There was an aristocratic group,
but most of the people belonged to the middle class, and were simple
and even severe in their tastes. In the middle colonies, on the other
hand, most of the people were small farmers of mixed religious and
racial character. Social classes existed to a considerable extent.
Finally, the South was devoted to large plantations, cultivated by
black slaves. Social lines were sharply drawn, and a genuine
aristocratic class was already well formed.
A third reason for the weakness of the coöperative spirit among the
states is to be found in the lack of means of transportation and
communication. Travel was mostly confined to natural waterways, or to
rude paths over which horses proceeded with great difficulty. As late
as 1800 it often took a horseman longer to go from Boston to New York
than it now takes to go by rail from New York to San Francisco and
back again. There were no railroads in those days, no telephones, no
telegraph, and practically no postal service. Life was primarily
rural, even on the seacoast. Most interests centered about the local
community, or at farthest, about the colony or state. In many sections
there was little exchange of products or of ideas. From the resulting
isolation there developed a strong feeling of localism or
provincialism. Ignorance and suspicion of intercolonial affairs gave
rise to misunderstandings, and emphasized differences and disputes
which in themselves were unimportant. Thus jealousy and hostility
often sprang up where mutual confidence and coöperation were sorely
needed.
28. NEGATIVE FORCES FAVORING UNION.--The failure of the Articles of
Confederation is one of the most discouraging chapters in the
development of American democracy. And yet it is an indispensable
chapter, for it demonstrated, far more convincingly than could any
theoretical argument, that there must be one great American nation
rather than thirteen or more unrelated republics. Six years of
practical experience with the Articles of Confederation taught the
absolute necessity of a strong central government. The weaknesses of
the Confederation government constituted the most spectacular of the
forces favoring union in 1787, and yet these forces were negative in
character: the states accepted the Constitution of 1787 not so much
because they were attracted by it, as because they saw little chance
of getting along without it.
29. POSITIVE FORCES FAVORING UNION.--It should be noted, on the other
hand, that for a long period previous to the adoption of the
Constitution of 1787, certain positive forces were impelling the
states toward union. In their Old World homes most of the settlers had
occupied somewhat the same social position, and had been used to
somewhat the same economic conditions. This common background
constituted, in their New World homes, a unifying force of great
importance. Long before 1787, too, the great majority of the settlers
were of English descent, speaking the English language, and, except
for the Roman Catholics of Maryland, professing some form of
Protestantism.
In spite of the numerous jealousies and rivalries among the various
sections of the country, there were at work forces which tended to
break down the spirit of localism or provincialism. Though the
Revolution established thirteen separate states, the war had
encouraged the Americans to feel that they were a single people with a
common destiny. The soldiers of various sections had rubbed elbows
with one another during the French and Indian wars, and during the
Revolution. This had served to encourage a feeling of comradeship
between the inhabitants of different communities. The population of
the country was doubling every twenty years, and groups previously
isolated were coming into contact with one another. Interstate
coöperation was not only more necessary than ever before, but it was
less difficult to bring about. Highways were being improved, and the
postal service gradually extended, with the result that a more
wholesome social life was made possible.
In an economic sense the American people were increasingly
interdependent. Especially on the frontier many communities were still
economically self-sufficing, but to an increasing extent the
development of commerce and manufacturing was everywhere calling for a
closer coöperation between various sections of the country. The
Annapolis Convention of 1786, indeed, was called for the purpose of
promoting commercial coöperation among the states. According to
Professor Beard, the formation of the Federal Constitution itself may
in large measure be traced to the desire throughout the country for
interstate coöperation in industry and commerce.
30. AMERICAN DEMOCRACY IN 1787.--The constitutional convention of 1787
expanded American democracy from a local idea to a political concept
of national proportions. But though this was an important step
forward, 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 the
Constitution was due primarily to negative forces; the full
development of the positive forces, upon which the ultimate integrity
of the union rests, was to be delayed for almost a century. The states
technically abandoned state sovereignty when they accepted the
Constitution of 1787, but not until the Civil War had been won was
permanent union assured. Most important of all, American democracy was
in 1787 only a political concept. There was at that time no suspicion
that democracy was later to be expanded into a philosophy of life,
applicable not only to purely governmental affairs, but to the
individual in his economic and social relations as well.
QUESTIONS ON THE TEXT
1. Distinguish between local and national spirit in the Revolutionary
period.
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 the
states to unite before 1787.
9. Explain the phrase, "Negative forces favoring union."
10. To what extent was the constitutional convention of 1787 the
result of positive forces?
11. Explain clearly the statement that in 1787 American democracy had
not 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_, chapter
xix.
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 states
during the critical period. (Fiske, pages 144-147.)
3. Explain why American credit in Europe failed during the critical
period. (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 to
more 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 the
ability of different communities in your section to coöperate with one
another. (Consult local histories.)
2. To what extent does the newspaper help you to understand the
character and ideals of individuals beyond your community?
3. Contrast the telephone and the postal service as influencing the
development of the coöperative spirit in the city. In rural districts.
4. To what extent would improved methods of transportation and
communication lead to a closer coöperation between the rural and urban
districts in your state?
5. To what extent has the economic interdependence of different
members of your community led to a better understanding? To a closer
identity of interests?
II
6. Difficulties of travel in colonial times. (Crawford, _Social Life
in Old New England_, chapter _x_.)
7. Postal facilities in the colonial period. (Bogart, _Economic
History of the United States_, pages 82-83.)
8. Diversity of economic interests among the colonies. (Bogart and
Thompson, _Readings in the Economic History of the United States_,
pages 29-42.)
9. Union under the Continental Congresses. (Beard, _American
Government 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, _American
Government and Politics_, pages 44-53. See also any other standard
text 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 United
States_, pages 324-325.)
15. The outlook for American democracy in 1789. (Bryce, _Modern
Democracies_, vol. ii, chapter xxxviii.)
CHAPTER IV
ESSENTIALS OF AMERICAN CONSTITUTIONAL GOVERNMENT
31. THE AIM OF THIS CHAPTER.--The form of government established in
this country by the Constitution of 1787 is known as a republic. A
republic may be defined as a representative democracy, or, in the
popular sense of the term, simply as a democracy. Now, to point out
that a government is democratic does not necessarily mean that it is a
sound government. Granting that self-government is morally right, the
fate of a democracy will depend, partly upon the character of the
people, and partly upon the nature of the governmental machinery
through which that people expresses its will. The proof of democracy
is in its workings. The aim of this chapter is not to pass judgment
upon democracy, but rather to outline the essential characteristics of
American constitutional government. When this background has been
secured we shall be in a position to begin a detailed study of applied
democracy, 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 strong
government. The weaknesses of the Articles of Confederation were
avoided in framing the Constitution of 1787. Whereas the Confederation
government was really headless, the Constitution of 1787 provided for
a strong executive. The Confederation Congress could not levy taxes,
but the Congress of the United States has adequate powers in this
regard. There can be no recurrence of one of the chief financial
troubles of the Revolutionary period, for at the present time the
several states may neither coin money nor emit bills of credit. The
Federal government has exclusive control of foreign affairs, so that
no state may individually enter into any agreement with a foreign
power. The Federal Constitution is the supreme law of the land, and no
state action may contradict it. Unity has given us strength, and great
crises, such as the Civil War and the World War, have ended by
increasing that strength.
33. THE CHECK AND BALANCE SYSTEM.--A striking characteristic feature
of American constitutional government is the check and balance system.
By this system we mean all those constitutional provisions which
divide and subdivide governmental power among various sets of public
agents. [Footnote: For a fuller discussion of the check and balance
system see Chapter XXXIX.]
This division of powers is threefold. First, there is a division of
power between the Federal government and the governments of the
several states. The states are obliged to act in concert on most
questions involving the nation as a whole, but the Federal
Constitution safeguards the rights of the states by reserving to them
all powers not specifically delegated to the Federal government.
Second, in both Federal and state governments, power is still further
distributed among the executive, legislative, and judicial branches in
such a way that each branch constitutes a check upon the other two.
Third, in both Federal and state governments there is a division of
power within each of the three branches of government. Thus both the
President of the United States and the governors of the various states
are at least partially controlled by subordinate executive officials,
while in the legislative branch of both Federal and state governments
the upper and lower houses constitute a check upon one another. In the
case of both Federal and state judicial systems there is a division of
jurisdiction.
34. THE CHECK AND BALANCE SYSTEM SECURES STABILITY.--American
government is not only strong, it is stable. This stability is due
chiefly to the admirable way in which different governmental agents
are balanced against one another. The check and balance system renders
us safe from the danger of anarchy, for though ultimate control is
vested in the people, sufficient powers are entrusted to the
governmental mechanism to protect it against popular passion. The
system likewise protects us against despotism. So long as the
Constitution endures, neither the Federal government nor the
governments of the states may destroy each other. The undue
concentration of political power is likewise rendered difficult by the
division of power between the legislative, executive, and judicial
branches of both Federal and state governments.
The significance of a properly applied check and balance system
appears clearly when we compare our government with that of various
other republics. In many of the ancient republics, for example, the
powers of government were so unequally and so indefinitely divided
that republican government degenerated either to despotism or to
anarchy. Within the last century many Latin-American republics have
modeled their governments after ours, and yet some of these republics
are constantly threatened by either revolution or despotism. The
explanation of this, according to Elihu Root, is that these republics
have adapted our check and balance system so carelessly that they find
it difficult, if not impossible, to maintain a really stable
government. [Footnote: Here we are pointing out the fundamental merits
of the check and balance system; later (Chapters XXXIV, XXXV, and
XXXVI) we shall have occasion to notice some of the disadvantages of
this system.]
35. THE RIGHTS OF THE INDIVIDUAL.--We have not purchased strength and
stability at the expense of personal freedom, for both Federal and
state constitutions specifically safeguard the rights of the
individual. The fundamental guarantees set forth in the Magna Charta,
the Petition of Right, and the Bill of Rights were cherished by the
American colonists, and in 1791 they formed the basis of the first ten
Amendments to the Federal Constitution. Provisions similarly designed
to safeguard individual rights are found in the constitution of every
state in the Union. [Footnote: For an enumeration of these rights, see
the 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 of
American government has been to allow the individual as much freedom
of 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 act
through their chosen representatives. There is no power in American
government beyond that created or permitted by the people themselves.
The suffrage, so narrowly restricted in the eighteenth century, has
since widened to include the great majority of adults, both male and
female. Elections are frequent, so that ill-chosen officials may not
long abuse their position. The Initiative, the Referendum and the
Recall are methods of popular control which in many sections are
spreading. Constitutional amendment in the United States is not easy;
on the other hand, if any considerable percentage of the voters evince
a sustained desire for change, an amendment is the normal
result. [Footnote: In Part IV of the text we shall consider the
dangers of an over-extension of popular control; here it is only
necessary to point out that American government is essentially
government by the people.]
37. EFFICIENCY.--The division of functions between the Federal and
state governments on the one hand, and between state and local
governments on the other, provides a solid foundation for the
economical administration of government.
The Federal government attends to most matters which are of national
importance, and which cannot properly be looked after by the states
individually. For example, foreign relations, the postal service, and
the coinage of money, are Federal functions. The separation of Federal
and state functions is not always clear, but such matters as
contracts, property rights, crime, and education are probably best
administered by the state. There is, similarly, no sharp dividing line
between the functions of state and local governments, but at present
it appears that the local authorities are the most efficient
administrators of roads and bridges, water and paving, the elementary
schools, and similar concerns.
The essential economy of this threefold division of functions is that
each of the three sets of officials tends to concern itself with those
matters with which it is best acquainted, and which are most
advantageously administered by it.
38. UNITY.--The earlier European critics of our government declared
that the division of powers between Federal and state governments
would encourage civil strife. It is true that this division of powers
has resulted in a decentralized rather than in a centralized form of
government. It is equally true that the quarrel over states' rights
was the fundamental cause of the Civil War. But that war settled the
question of states' rights once and for all, and there has never again
been 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 us
from presenting a united front in foreign wars. The concentration of
war powers in the hands of President Lincoln during the Civil War was
matched by the temporary dictatorship wielded by President Wilson
during the World War. In both cases, the national executive became,
for the period of the emergency, as powerful and as efficient as the
executive of a highly centralized monarchy. This ability to exhibit
unity of control and singleness of purpose in war-time enables us to
claim for our form of government one of the most important assets of
the centralized monarchy.
39. THE SPIRIT OF PROGRESS.--Certainly one test of good government is
the extent to which it renders the masses of the people happy and
prosperous. American government has not yet exhausted the
possibilities of helpfulness, but one of the chief aims of our
political system is to encourage the individual in every pursuit which
is legal and honorable. Lord Bryce has called America the land of
Hope, because in spite of the defects of American government, a
feeling of buoyancy and optimism is characteristic of our political
institutions. America might also be called the land of Sane Endeavor,
for we lend force and justification to our optimism by consistently
working for the attainment of our ideals. To improve every condition
of American life, and yet to work in harmony with the principles of
constitutional government, that is our ideal. Progress must come
through authorized channels, for, as Abraham Lincoln has said, "a
majority, held in restraint by constitutional checks and limitations,
and always changing with the deliberate changes of popular opinion and
sentiment, is the only true sovereign of a free people, and whoever
rejects 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 strength
of 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 government
stable.
5. Why is stability not a feature of some of the Latin-American
republics which have adapted our check and balance system?
6. What can be said as to the rights of the individual under American
constitutional government?
7. To what extent is American government subject to popular control?
8. How does American government provide for a solid foundation for the
economical administration of government?
9. What charge did the earlier European critics bring against American
government? Has history substantiated or disproved this charge?
Explain.
10. Compare the American democracy with a monarchy with respect to
efficiency in war-time.
11. Why may America be called the land of Hope? To what extent may it
properly be called the land of Sane Endeavor?
12. What did Lincoln say as to the only true sovereign of a free
people?
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, pages
145-147.)
2. What are the two classes of constitutional limitations upon the
Federal 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 toward
the individual? (Root, page 98.)
5. Contrast this attitude with the "Anglo-Saxon idea." (Root, pages
98-99.)
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 of
personal liberty? (Root, pages 114-115.)
8. What faults have philosophers and popular writers generally
attributed 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, or
with which you are familiar. To what extent does its organization
illustrate the check and balance system?
2. Classify local or state officials in your commonwealth, in order to
show differences in term and differences in the method of choosing
them. To what extent do these differences constitute a check and
balance system?
3. Make a list of the guarantees of personal liberty which are
contained in the constitution of your state. Compare this list with
similar lists made from the constitutions of other states. Compare the
list 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 or
section. Which are local, which state, and which Federal? Do you
believe that any of these functions could be more advantageously
performed by some other division of government than that which is now
performing 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, _Readings
in 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_, chapter
xxi.)
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 in
American Government and Politics_, pages 138-140.)
12. The supremacy of Federal law. (Beard, _Readings in American
Government 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 of
government. (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 War
and the New Age_, chapter x.)
CHAPTER V
THE PROBLEMS OF AMERICAN DEMOCRACY
40. NO GOVERNMENT IS PERFECT.--All government is a compromise, in that
it is adopted or created for the purpose of harmonizing the interests
of the individual with the interests of the group. The types of
government are numerous, varying with the character of the group, and
with the particular conditions under which it exists. But we know of
no government which is perfect: all have shortcomings, some very
serious, others less so. There is nothing to be gained, therefore, by
debating whether or not American government is imperfect. A much more
profitable question is this: What are the faults of American
democracy, and how may they be eliminated or minimized? The most
constructive work which the American citizen is called upon to do is
to grasp the character of the problems confronting his country, and
then to attempt their solution.
41. THE WIDENING CIRCLE OF PROBLEMS.--The last two centuries have
constituted an age of rapid change and development in all of the major
phases of civilization. There have been rapid shifts in population,
particularly in the younger countries of the world. Important
discoveries have greatly increased our knowledge of natural science;
epoch-making inventions have revolutionized manufacturing, commerce
and transportation. In every civilized land there have been
readjustments of political beliefs, as well as important changes in
intellectual, religious, and social standards. Such an age is
peculiarly an age of problems: it is a period of change and stress, a
time 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 the
impact of those forces which for the last two centuries have been
creating problems the world over. In the second place, the whole
period of our national development has fallen within this age of
change and readjustment This means that we have had to grapple with
the problems common to all modern countries during a period in which
the origin and development of American democracy have been creating
purely domestic problems. These facts at least partially explain the
growing importance of the problems of American democracy during the
past century.
42. EFFECT OF AN ENLARGED SOCIAL CONSCIENCE.--Many of the issues of
contemporary American life have come into prominence because we have
enlarged the concept of democracy within the last century. The term
democracy has come to imply, not merely a form of government, but
actually a philosophy of life stressing justice and happiness for the
individual, whether in his political, social, or economic capacity.
The more humanitarian our view, the more situations calling for remedy
fall within it. Child labor, to give a single example, was not
generally considered an evil a century ago, but to-day an enlarged
social conscience condemns it.
43. NECESSITY OF AVOIDING PATERNALISM.--The solution of many national
problems implies an extension of government control. Now, it is not
generally appreciated that while an enlarged social conscience has
increased the number of our problems, the individualistic strain in
the American nature resists that paternalism which at present appears
necessary to an effective treatment of certain problems. We are behind
Germany in legislation designed to prevent industrial accidents,
lessen the evils of unemployment, and otherwise protect the worker
against the risks of industry. But Germany has built up this system of
social insurance by restricting personal liberty, and by greatly
extending the power of government over the individual. The great task
confronting our government is to do as much for the individual as any
paternalistic government, without endangering his rights by an undue
extension of governmental control.
44. THE COMPLEXITY OF OUR PROBLEMS.--The mistake is sometimes made of
thinking that national issues can be nicely defined, and separated
from one another. The human mind has its limitations, and we are prone
to emphasize the outline and content of particular problems in order
to perceive their essential character the more clearly. But though
this is permissible for purposes of study, we must bear in mind that
the questions which we are to discuss are connected with one another
in a most baffling way. To understand the administration of charity,
for example, we ought to know the social, economic, and political
background of the community under observation. The thorough study of
this background would lead us to crime, education and other problems,
which in turn have their connections with issues still further removed
from the immediate problem of charity. The thorough understanding of a
specific question thus implies consideration of many inter-related
questions. Likewise, the solution of a particular question affects and
is 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 greater
importance than any other group. But at least we may say that some
problems are primary in origin, while others appear to be secondary,
_i.e._ derived from those called primary. In the chapters which
follow, the attempt has been made to arrange the groups of problems
with some regard to their primary or secondary origin. Probably the
most fundamental problems which face us to-day are those of economic
organization. Properly to understand these problems the student must
first grasp the essential facts of American industry. We shall begin
our study of the problems of American democracy, therefore, with a
survey of the economic life of the nation. Only after we have mastered
the principles upon which American industry is based, shall we be in a
position to solve the problems which arise directly from the nature of
our economic organization.
46. INDUSTRIAL REFORM.--Our industrial life is so clearly based upon
certain fundamental institutions, such as private property, free
contract, and free competition, that an industrial "system" is said to
exist. Certain great evils, notably poverty, have accompanied the
development of this system. We shall discuss a number of programs
designed to eliminate these evils. The doctrine of single tax is of
interest as advocating the abolition or confiscation of land value.
The coöperative conduct of industry is of increasing importance of
late years. We must also reckon with socialism as a movement which
seeks the redistribution of wealth. Under the general head of
socialism we shall have occasion to notice a small but active group
known as the Industrial Workers of the World, and the larger, though
related, group which recently conducted a socialist experiment in
Russia. The discussion of socialism completed, we shall sum up the
attitude of American democracy toward the whole problem of industrial
reform.
47. SOCIAL PROBLEMS.--Of the social problems which grow out of a bad
economic situation, none is more vital than the fostering of peace and
good will between labor and capital. Following the discussion of
industrial relations, we shall have occasion to notice a whole series
of social questions which have either been derived from, or
accentuated by, the rapid industrialization of our country. Grave
questions arise in connection with immigration, health, and the
cityward drift. The consideration of the problems of the city in turn
directs attention to the necessity of a normal rural life, and to the
importance of safeguarding the American home. Dependency is a familiar
problem, but one which, in the light of an awakened community spirit,
is now being studied from new and interesting angles. Last among
social problems is the fundamental matter of education. It is not too
much to claim that the ultimate fate of American democracy depends, to
a great extent, upon the vigor and intelligence with which we improve
and extend our educational system.
48. RELATION OF GOVERNMENT TO BUSINESS.--Since our material well-being
rests upon an economic basis, the public has a vital interest in
business. The rise of great corporations and the necessity of
safeguarding the public from monopolistic abuses make necessary a
careful examination into the relation of government to business. We
shall meet with this question: Shall the government regulate, or
actually own, businesses of vital importance to the public? Equally
knotty, but fully as interesting, is the tariff question. Should
Congress tax foreign goods entering this country, and, if so, upon
what principles should this tax be determined? This will bring us to
the general problem of taxation, a subject to which the American
people will probably devote an increasing amount of attention in the
next few decades. The question of conserving our natural resources
must also be discussed. Last in this group of problems may be
mentioned the question of money and banking. In discussing this
important subject we shall notice, among other things, the interesting
Federal reserve system, which, it is hoped, will protect us from
panics in the future.
49. PROBLEMS IN EFFECTIVE GOVERNMENT.--The economist has good reason
for declaring that the getting of a living is one of the most
fundamental concerns in life; on the other hand, no people can long
get a comfortable living without the aid of a helpful system of
government. Government must be made effective. This introduces us to
another series of problems. First of all, who shall share in
government? And how may we improve the methods by which we select the
agents of government? How may corruption and inefficiency be
eliminated from American government? What is the significance of the
Initiative, the Referendum, and the Recall?
These questions must prove of fascinating interest to those who think
of 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, America
fulfills the first condition of national greatness. Intelligent and
industrious, law-abiding and, devoted to the building of homes, our
population fulfills the second condition.
Here we have all the raw materials out of which to build a great
nation. Already we have made marked contributions to civilization, and
yet it should not be forgotten that our chief claim to national
greatness rests upon the promise which we show of being able to
perfect American democracy.
To what extent will this promise actually be realized? As a nation we
are yet young, as a people we have scarcely begun the greatest
experiment in democracy which the world has ever seen. Shall we
endure, shall we attain to a half-success, shall we succeed
gloriously?
Much depends upon the extent to which each of us assumes the
responsibilities of citizenship. Those who have gone before us
conquered a wilderness, expanded and preserved the Union. But it is
not for us complacently to accept the result. Much has been done, but
much more remains to be done. Our goal is the greatest possible
perfection of our economic, social and political life. Each age may be
said to have its peculiar burdens and responsibilities: the prime task
of the colonist was to foster the tender shoot of democracy; that of
the western pioneer was to fashion homes out of a wilderness; the
burden of our generation is to grapple with the present-day problems
of American democracy. Without a high sense of personal
responsibility, coupled with an intelligent and consistent effort, we
can never reach the high goal admittedly possible.
51. THE POINT OF VIEW IN PROBLEM STUDY.--To see American democracy and
to see it as a whole should be our aim throughout the remainder of
this book. Now this is not easy. The danger is that the unwary student
will interpret the large amount of space devoted to "problems" as
meaning that American life is preeminently unsettled and defective.
This is a temptation to be guarded against. Though we shall uncover
many defects, it should be remembered that we are predominantly a
normal, healthy, prosperous people. But our virtues demand our
attention less urgently than do our defects. If we seem to be
overconcerned with the defects of American life, the student should
not conclude that American life is primarily defective. Rather, he
ought to realize that it is precisely because a situation involves a
problem 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 few
problems; where life is progressive and civilization steadily
advancing, problems are numerous and pressing. Problems imply
adjustment, development, the desire for improvement and advancement.
They are signs of progress, the growing pains of civilization. If we
bear this in mind, we shall be in a fair position to see American
democracy in true perspective, without undue distortion of our
viewpoint, and without prejudice to our judgment.
QUESTIONS ON THE TEXT
1. Why is there nothing to be gained by debating whether or not
American democracy is imperfect?
2. Why has the circle of our problems been steadily widening during
the last century?
3. Trace the relation between an enlarged social conscience and the
number of problems confronting us.
4. What is one danger of paternalism?
5. Give a definite example to illustrate the complexity of our modern
problems.
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 for
effective government.
10. What is the importance of individual responsibility in studying
the problems of American democracy?
11. Outline clearly the point of view to be maintained in studying
these 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 intellectual
traits of the masses of the American people? (Bryce, pages 825-826.)
2. Lord Bryce says that "there are elements in the life of the United
States which may well make a European of any class prefer to dwell
there 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 the
American character? (Bryce, page 876.)
4. What three advantages does the United States have over European
countries 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 a
matter of human relationships"? (McLaughlin, pages 189-190.)
7. What, according to Lord Bryce, are the four chief defects of
American democracy? (Bryce, page 632.)
8. What are the essential qualities which civic education should aim
to 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 a
citizen in the community. List these problems in the order in which
they occur to you, or are discovered by you. Comment upon the confused
and 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 problems
so classified.
5. What agencies, public, semi-public, or private, are studying the
problems on your list?
6. What difference of interest do the citizens of your community show
in local, state and national problems?
II
7. Defects of democratic government the world over. (Bryce, _Modern
Democracies_, 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 Good
Citizenship_.)
10. The promise of American life. (Croly, _The Promise of American
Life,_ chapter i.)
11. Attitude of the individual in a democracy. (Hughes, _Conditions of
Progress in Democratic Government_.)
12. The power of ideals in American history. (Adams, _The Power of
Ideals in American History_.)
13. Ideals of citizenship. (Woodburn and Moran, _The Citizen and the
Republic_, 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 part
of American industry was concentrated along the Atlantic seaboard; to-
day it extends over a large part of the continent. A century and a
half ago our industrial system was still a relatively simple one,
giving rise to few pressing problems of national importance; at the
present time it is a vast and complicated affair, closely bound up
with many of the most vital problems which confront American
democracy. The activities which are commonly grouped under the head of
"American industry" are so numerous and so varied that a description
of all of them would carry us beyond the limits of this chapter.
Nevertheless, it is important that we secure some understanding of
these activities. A few pages may profitably be spent, therefore, in
discussing certain basic facts of American industry.
53. FAVORABLE LOCATION OF THE UNITED STATES.--Let us commence by
noting that the location of the United States is favorable to the
development of industry. Of the two American continents, the northern
has the greater natural advantages. Each continent is roughly in the
form of a triangle with the apex or smaller end pointing southward,
but whereas the larger end of the South American triangle is within
the tropic zone and only the tapering end is within the more favorable
temperate zone, the greater part of the North American triangle is
within the temperate zone. With regard to location for world trade the
northern continent again has the advantage: the ports of South America
face a relatively empty ocean on the west and the little-developed
continent of Africa on the east; the ports of North America, in
addition to being more numerous and more suitable for commerce than
those of the southern continent, face the teeming Orient on the west,
and the great markets of Europe on the east. Moreover, the United
States 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 near
the tropics. The heart of temperate America, on the other hand, is
included within the territory of the United States.
54. POPULATION.--Scarcely less important than the favorable location
of the United States is the character of the people occupying the
country. From less than four million in 1790, our population has
increased so rapidly that in 1920 there were 105,710,620 people within
the bounds of continental United States. As the population has
increased, it has spread over the Appalachians, into the great
Mississippi basin, and westward to the Pacific Ocean. Accompanying the
increase and westward spread of the population has come a greater
variety of racial types. Although our population was varied in
colonial times, the great majority of the settlers were from the
British Isles and northwestern Europe. In the latter part of the
nineteenth century immigration from northern Europe declined and more
and more immigrants began to come from southern and southeastern
Europe. So universal has been the attraction of America, that our
present population includes elements from every important country in
the world. From the industrial standpoint, the dominant
Characteristics of this composite American people are energy and
versatility.
55. NATIONAL WEALTH.--Generations of industrious people have helped to
make the United States the wealthiest nation in the world. It has been
estimated that in 1850 our national wealth amounted to $8,000,000,000.
By 1900 the remarkable progress of American industry had increased
this figure to more than $88,000,000,000. In 1912 our wealth was
probably in excess of $180,000,000,000. Industrial and financial
disturbances during the period of the World War make later estimates
hazardous, nevertheless it is interesting to note that in 1921 the
wealth of the United States was estimated as being between
$350,000,000,000 and $400,000,000,000. According to this estimate, the
wealth of this country exceeded, in 1921, the combined wealth of Great
Britain, France, Germany, Italy, and Belgium. In weighing the value of
this comparison, however, we must take into consideration the heavy
destruction of wealth in western Europe because of the World War.
56. WHAT THE AMERICAN PEOPLE ARE DOING.--A large percentage of the
inhabitants of the United States are engaged in some form of
productive work. According to the most recent estimates there are
approximately fifty million persons, male and female, over ten years
of age, engaged in gainful occupations in this country. Of these about
fourteen 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 four
million are employed in domestic and personal service. Transportation,
clerical work, and professional callings utilize the services of
several additional million. The great majority of those employed in
American industry are men, although the number of women in industry is
steadily increasing. Children have been found in industrial pursuits
since colonial times, but of recent years there is a growing movement
to restrict or prohibit the employment of children in gainful
occupations.
57. FORESTS AND MINERALS.--The natural resources of the United States
play a large part in our industrial life. One fourth of the territory
of the United States is still covered with timber. We are abundantly
supplied with coal and iron, the two most important industrial
minerals. Our coal deposits outrank, both in quantity and in quality,
those of any other country. Iron is found in most of the states in the
Union, the high-grade deposits of the Lake Superior area being of
special importance. We produce more than half of the world's supply of
copper, which, after coal and iron, is the most important industrial
mineral. Our supply of petroleum and natural gas is large, and in
spite of the waste which has characterized our use of these important
commodities, our production of both is still great. Gold, silver,
zinc, lead and phosphates are produced in the United States in large
quantities. Indeed, we have ample supplies of practically all of the
minerals of importance to industry, except platinum, tin, and nickel.
58. AGRICULTURE.--Until very recently, at least, agriculture has been
by far our most important industry. Of the two billion acres
comprising continental United States, approximately half are under
cultivation. In most sections of the country the quality of the soil
is good, and rainfall is ample. We have long led the world in the
value of farm crops grown. Our production of wheat, corn, oats,
barley, rye, and dairy products totals an enormous figure. The steady
enclosure of lands formerly used for grazing stock is restricting our
production of food animals, but we are still important as a producer
of meats. Most of the world's tobacco is grown in this country. The
world's supply of cotton is derived mainly from southern United
States. Finally, our soil is of such variety, and our climate so
diversified, that the danger of a general crop failure is slight. A
loss in one part of the country is almost certain to be offset by good
crops in another.
59. MANUFACTURING.--In colonial times American manufactures were
subjected to more or less restraint by Great Britain, but after the
Revolution these industries entered upon a period of free and rapid
development. Modern machinery was introduced rapidly after 1800, large
scale production was developed, transportation was fostered, and
larger and larger markets were supplied with the products of American
manufacturers. Particularly since the Civil War has the importance of
our manufactures increased. This increase has been due chiefly to the
large scale production of foodstuffs, including meats and flour;
textiles; iron and steel products; shoes; chemicals; and agricultural
machinery. According to recent census figures it would appear that we
are passing from a predominantly agricultural life to a stage in which
manufacturing is of relatively greater importance.
60. TRANSPORTATION AND COMMUNICATION.--The physical geography of the
United States encourages the development of adequate means of
transportation and communication. The St. Lawrence-Great Lakes system
gives easy access to the most fertile section of the continent. The
Mississippi and its tributaries drain a million square miles of farm
land. We have, in addition to 18,000 miles of navigable rivers, a
greater coast line available for commerce than has the whole of
Europe. New York is the world's greatest seaport.
Few mountain ranges hamper the development of transcontinental
railroads in this country, and of these only one, the Rockies, is a
serious obstacle to effective transportation. Our railroad mileage is
enormous, a half dozen transcontinental lines being supplemented by
numerous smaller roads and feeding lines. We have more than 2000 miles
of canals in operation. Cheap and rapid transportation between the
different parts of the country, supplemented by adequate means of
communication by telephone, telegraph, and the postal service,
undoubtedly has been one of the greatest factors in our national
prosperity.
61. DOMESTIC AND FOREIGN TRADE.--The great majority of our products
are not shipped to foreign markets, but are utilized within the
country. We are still so young and so undeveloped a country that our
manufacturers have been kept busy supplying the domestic market. This
fact, together with the American manufacturer's lack of knowledge
concerning the possibilities of foreign trade, explains our neglect of
foreign markets. In proportion as our manufacturers catch up with the
domestic market, and in proportion as their knowledge of foreign
markets increases, it is likely that they will give more and more
attention 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 foreign
trade of any other country. This predominance is due, not so much to
our search for foreign markets, as to the steady demand in other
countries for three classes of goods in the production of which we
have a distinct advantage. These three classes of goods are, first,
raw materials of which we have a great abundance, such as cotton and
copper; second, specialties invented and patented by Americans, such
as inexpensive automobiles, typewriters, and phonographs; and, third,
commodities which may be advantageously produced by large-scale
methods, such as agricultural machinery and the cheaper grades of
textiles.
62. SUMMARY AND FORECAST.--We have very briefly surveyed some of the
basic facts of American industry. On the one hand, the favorable
location and the rich natural resources of the United States have
furnished a substantial basis for industrial progress. On the other
hand, we must note that the American people are energetic and
versatile,--combining, to a happy degree, the qualities of initiative
and originality, perseverance and adaptability. The great wealth and
prosperity of the country as a whole have been the result of the
combination of a favorable land and an able people.
This is not the whole of the story, of course. It must be admitted
that, with all of our wealth, we continue to face serious charges of
poverty and industrial maladjustment. These charges are of great
importance, but it should be remembered that no problem can be solved,
or even intelligently attacked, until the essential facts are well in
hand. We have briefly described the nature of American industry. What
we have now to do, as a preliminary to considering the problem of
poverty and industrial reform, is to analyze the economic laws in
accordance with which American industry has developed. The essential
facts 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 in
the last century and a half?
2. Compare North America with South America with respect to natural
advantages.
3. Outline the changes which have occurred in the population of the
United 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 supply
of 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 physical
geography of the United States?
10. Why is our domestic trade of relatively greater importance than
our foreign trade?
11. To what three types of goods is our predominance in foreign
markets due?
12. What qualities of the American people have contributed to their
industrial 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 continental
United States may be divided. (Bogart, pages 11-12.)
2. Why has the animal life of the North American continent declined in
significance since colonial times? (Bogart, page 8.)
3. Into what five divisions may the forests of the United States be
classified? (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 the
last century? (King, pages 22-27.)
8. Discuss the value of urban land in the United States. (King, pages
15-21.)
9. Why is it extremely difficult to measure the wealth of the United
States? (Fetter, pages 6-10.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Trace the growth in the population of your state since 1880. What
have been the chief sources of this increase?
2. To what extent has the population of your state been affected by
immigration from Europe? What attracts immigrants to your state? Have
there been any changes in the character of this immigration since
1880?
3. Classify the population of your state on the basis of occupation.
(Secure data from the State Board of Labor, or State Bureau of
Statistics.)
4. Estimate the material wealth of your community. What light does the
result throw upon the difficulties of summarizing the wealth of the
nation?
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, _Elementary
Economic Geography_.)
7. A comparison of America three hundred years ago with the America of
to-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 American
Commonwealth_, vol. ii, chapters cxiv and cxv.)
10. Ways of getting a living. (Carver, _Elementary Economics_, chapter
xv.)
11. Geographical distribution of cities and industries in the United
States. (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_, chapters
viii, 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, _Elementary
Economic Geography_, chapter xxxii. See also any other recently
published text on this general field.)
CHAPTER VII
WHAT IS MEANT BY PRODUCTION
63. WHY MEN WORK.--Ultimately everyone depends upon work for his
living. Young children commonly live upon the earnings of their
parents; most normal adults, on the other hand, depend upon their own
efforts for their living. Since every individual probably works
because of a combination of motives, it is possible somewhat to
analyze the reasons why men work. The most fundamental reason for
working is in order to preserve one's life. This assured, the
individual is in a position to work in order to preserve the lives of
those who are near and dear to him. When the necessities of life have
been provided, work is commonly continued for the sake of acquiring
comforts or luxuries.
Under a well-regulated legal system these efforts of the individual
also benefit the community, but until he is able to support himself
and his family, the average individual does not consciously make the
public interest the chief end of his labors. However altruistic a man
may 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 his
personal needs have already been met.
64. THE OLD WAY OF GETTING A LIVING.--The economic history of
eighteenth century England illustrates two rather distinct methods of
getting a living, one of which may be called the old, and the other
the new. Up to about the middle of the century, the masses of
Englishmen, in common with the people of other countries, got a very
poor living. Most common necessities were made in the home and for
purely family use. Shoes, clothing, tools, and similar articles were
produced laboriously and on a small scale. In comparison with
industrial conditions in the nineteenth century, there was at that
time little industrial coöperation [Footnote: By coöperation is here
meant simply the working together of different persons or groups of
persons. Coöperation in this sense is to be distinguished from
coöperation as discussed in Chapter XII.], little division of labor,
little suspicion that men were, in spite of hard work engaged in for
long hours, getting a very poor living. The trouble was, partly, that
men had not yet fully realized the possibilities of helping one
another, and partly that they were ignorant of how to make Nature
really an efficient aid in getting them a living.
65. THE NEW WAY OF GETTING A LIVING.--After the middle of the
eighteenth century the invention of a series of remarkable machines
enabled Englishmen greatly to increase their productivity, first in
the manufacture of textiles, and later in numerous other industries.
By subdividing their labor more and more minutely, and by each
specializing in the particular type of work which he could do best,
men found that their total output could be greatly increased. This
complex division of labor, made possible by the use of water and steam
power to run machines and to move vehicles of transportation, reduced
the difficulty of getting a good living, that it constituted a
veritable revolution in industry. Indeed, this change is known in
history as the Industrial Revolution.
66. EFFECTS OF THE INDUSTRIAL REVOLUTION.--In the last century and a
half the Industrial Revolution has spread to every important civilized
country in the world, everywhere encouraging the application of
machine methods to more and more industries. This change from
production on a small scale, and often by hand, to large-scale
production in factories equipped with complex machines, has had
important results. It has so increased our control over Nature that
even the humblest workman of to-day enjoys many comforts denied kings
a few centuries ago. On the other hand, the Industrial Revolution has
tended to create a numerous class which depends entirely upon wages,
and to set off against this class an employing group which possesses
and controls most of the income-producing equipment of industry. The
significance of this last development will become clearer as we go
along.
67. NATURE OF MODERN PRODUCTION.--In the study of modern production
two fundamental facts confront us. The first is that the economist
does 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 clear
that the performance of a service, such as teaching or painting, may
be more important than the manufacture of a material object which no
one wants. Production may thus be defined as the satisfaction of human
wants. The manufacturer of a material object is productive only if
that object is wanted by someone; he who supplies personal or
professional service is productive if that service satisfies the wants
of someone.
The second fundamental fact which confronts the student of modern
production is the complexity of our industrial system. Three hundred
years ago most of the commodities in daily use were made, either in
the home and by the family members, or by small groups of artisans
working together under relatively simple conditions. To-day production
is a vast and complicated process. To the eye of the untrained
observer a great mass of factories, farms, railroads, mills, machines,
ships, and busy laborers appears without order and, often, without
purpose. The task immediately before us is to analyze this mass, and
to point out the nature of the various factors which contribute to the
productive power of a community.
68. NATURE A FIRST FACTOR IN PRODUCTION.--Nature is defined by the
economist as inclusive of all of the materials and forces furnished in
the 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 in
Nature, we may lump together all of the materials and forces of Nature
and apply the term "land."
Taken in this sense, land is clearly of great importance in
production. We build houses and factories upon it, we use it as a
basis of transportation, we harness its motive power, and we make
extensive use of the innumerable raw materials which it furnishes.
Without land there could be no production, in the sense in which the
economist understands the word.
69. MAN'S LABOR A SECOND FACTOR IN PRODUCTION.--Something besides
land, or Nature, is necessary before our wants can be satisfied.
Nature is often careless of our needs and desires. True, she offers us
berries, coal, firewood, and many other commodities which are
practically ready to use, but even these articles will not satisfy our
wants unless we go to the trouble to secure possession of them. In an
important sense Nature is passive, and if she is to furnish us with a
living, we must engage in labor. This labor may be mental or physical,
the important point being that it is effort undertaken to increase our
control over Nature. Savages are content to use products in
substantially the form in which Nature provides them; civilized
peoples work over the products of Nature until the utility or want-
satisfying power of those products has been greatly increased. Man's
living improves as he progresses from indolence to hard physical
labor, then from hard physical labor alone to a combination of
physical and mental labor intelligently directed.
70. CAPITAL A THIRD FACTOR IN PRODUCTION.--Land to furnish raw
materials, and man to make use of those materials,--what more is
necessary? Nothing else would be necessary if all of Nature's gifts
were readily accessible, and if man unaided could make the best use of
them. But Nature hides or disguises many of her treasures, and man is
physically weak. Hence he has hit upon the device of making tools to
help him in his contest with Nature. During the period of the
Industrial Revolution many simple tools were supplanted by complicated
devices run by power and called engines and machines. To the economist
tools and similar devices are a form of capital, capital being defined
as inclusive of everything which man has created, or caused to be
created, in order to help in further production. [Footnote: Land has
not been created by man but is a gift of Nature. Land, therefore, is
not a form of capital.]
The fashioning of hammers and saws, the construction of railways, and
the manufacture of machinery, all these operations create capital. The
systematic creation and use of capital is one of the distinguishing
features of modern civilization. The laborer alone can produce little;
aided by capital he can produce much. Capital is not important if one
is willing to live like a savage; on the other hand, it is
indispensable if one wishes to enjoy the benefits of civilization.
71. COÖRDINATION A FOURTH FACTOR IN PRODUCTION.--Land, labor, and
capital are factors in production. Two hundred years ago nothing else
was essential to production. The average individual had his own land,
produced his own tools or capital, and relied chiefly or entirely upon
his own labor.
But the Industrial Revolution enlarged and complicated production. It
created an industrial system in which the individual is generally a
specialist, producing a surplus of his one product, but dependent upon
numerous other persons for most of the things which he personally
consumes. To-day, for example, there are numerous individuals raising
cattle, the hides of which are to be made into shoes; other
individuals are perfecting means of transportation so that those hides
may be carried to market; still other persons concern themselves only
with the building of factories or with the manufacture of machines
with which to work those hides into shoes. These various individuals
and groups may never see each other, nevertheless they aid one
another.
The secret of this often unseen and unconscious coöperation is that
there are individuals who specialize in the work of connecting up, or
coördinating, the other factors which are necessary to the production
of shoes. These individuals, about whom we shall have more to say in
the next chapter, constitute an important economic group. They
coördinate, in the example given above, the cattle grower, the
railroad manager, the tanner, the factory builder, and the
manufacturer, and thus make possible a kind of national or even
international coöperation which would otherwise be impossible. Those
whose function it is to promote this coöperation are, therefore,
indispensable factors in modern production.
72. GOVERNMENT A FIFTH FACTOR IN PRODUCTION.--A cursory examination of
modern industry would convince the observer that land, labor, capital,
and coördination are important factors in production. There is, in
addition, a factor which is so fundamental, and of such essential
value, that it is sometimes overlooked altogether. This is the work of
the government in protecting productive enterprises. Government aids
in production by suppressing theft, violence, and fraud; by allowing
individuals to engage in helpful businesses; by enforcing contracts
entered into legally; and by punishing many kinds of monopolistic
abuses. [Footnote: We shall take up the problem of monopoly in
Chapters XXVII and XXVIII.] The whole fabric of American prosperity is
built upon the foundation of law and order.
73. SUMMARY AND FORECAST.--Production in the economic sense consists
in doing that which will satisfy human wants. Modern production is a
vast and complicated process, involving the coöperation of five
factors: land, labor, capital, coördination, and government. In a
later chapter we shall find that there are wide differences of opinion
as to the relative importance of some of these factors. We shall find,
indeed, that the most vital economic problems which confront American
democracy depend for their solution upon a clear understanding of the
facts 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 ought
rather to reason out just how and why each is actually helpful in
American 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 of
labor? (Smith, chapter i.)
4. How does the meat packing industry illustrate the principle of the
division of labor? (Ely, page 125.)
5. To what extent does the cotton mill illustrate the principle of the
division of labor? (Ely, pages 124-125.)
6. What are the three fundamental advantages which result from the
division of labor? (Smith, chapter i; Carver, pages 75-76; Ely, page
126.)
7. What are the effects of the complex division of labor upon the
worker? (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, page
111.)
11. Explain the statement that thousands of individuals coöperate to
furnish the humblest workman with food and clothing. (Smith, chapter
i.)
12. What is the secret of modern industrial efficiency? (Adams, page
87.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Visit a factory, mill or shop in your vicinity and study the
organization of the plant with regard to the application of the
principle of the division of labor. Secure the amount of output per
man by dividing the total product by the number of workmen coöperating
in its production. Compare the output per man under these conditions
with the probable output per man if each workman were working
separately, without material assistance from other workmen.
2. Study, both by inquiry and by observation, the effects of the
division of labor upon the health and spirits of the workmen in the
factory, mill or shop visited.
3. Classify the industries in your locality on the basis of whether
they rely chiefly or entirely upon human, animal, water, steam or
electric power. Why does each industry not utilize some other form of
power than that actually used?
4. Classify some of the familiar occupation groups in your community
according as they derive their incomes chiefly or entirely from land,
labor, capital, or the process of coördinating land, labor, and
capital. Test the productivity of each group by the standard advanced
in section 67 of the text.
5. Attempt to show to what extent each of the five factors of
production has contributed toward the erection and furnishing of your
schoolhouse.
II
6. The Industrial Revolution in England. (Ely, _Outlines of
Economics_, chapter iv. Cheyney, _Introduction to the Industrial and
Social 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, _Economic
History of the United States_, chapter xii. Ely, _Outlines of
Economics_, chapter vi. Marshall and Lyon, _Our Economic
Organization_, 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 of
Bread_. Additional material on this subject may be secured by writing
to the International Harvester Company, Chicago.)
12. The story of iron and steel. (Smith, _The Story of Iron and
Steel_, pages 23-126.)
13. Development of business organization. (_Lessons in Community and
National Life_, Series A, pages 169-178.)
14. Economic work of the United States government. (Dryer, _Economic
Geography_, 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, and
depended relatively little upon the products of persons outside the
family circle.
But the complex division of labor which developed out of the
Industrial Revolution has made the exchange of products increasingly
important. To-day the typical workman concentrates upon one particular
kind of work, and is content to exchange a share of his earnings for
the numerous goods and services which he cannot supply for himself.
Exchange thus increases the total output of the community or nation by
permitting individuals to specialize in those commodities which they
can 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 a
particular community specialize in various types of work, but the
different sections of the country are devoted to the production of
those commodities for which they are best suited. Thus it is largely
true that New England is best suited to manufacturing, the South to
the growing of cotton, and certain parts of the West to the production
of lumber and foodstuffs. The suitability of a region to a particular
class of products is due, partly to location, partly to the nature of
the soil and the climate, and partly to the inclination and training
of the people. But whatever its causes, this territorial division of
labor could not be carried out without an efficient system of
transportation and communication. Communication by mail, telephone,
and telegraph is necessary to allow producers and consumers in
different parts of the country to keep in touch with one another.
Transportation by land and water is necessary if the surplus products
of one section are to be exchanged for the surplus products of other
sections.
76. TYPES OF COÖRDINATORS.--Those who perform the work of coördination
in industry are commonly referred to indiscriminately as business men,
middlemen, or entrepreneurs. [Footnote: the term "entrepreneur" is
awkward and little known, but no more satisfactory term is available.]
The meaning of these three terms is distinguished with difficulty, but
to avoid confusion later on the essential character of each should be
pointed out here. The term business man is very wide, and is commonly
inclusive of all who actively engage in any sort of business. The
primary function of the middleman is to act as a connecting link
between various industrial enterprises. The entrepreneur, on the other
hand, is primarily an individual who coördinates land, labor, and
capital with the intention of initiating and conducting a business
enterprise. In so far as he acts as a connecting link between other
industrial agents, the entrepreneur is a middleman, but the middleman
is usually thought of as an individual who connects up existing
businesses, rather than initiating a new enterprise. To the functions
of the entrepreneur we shall return in the next chapter; here it is
the middleman proper who is our chief concern.
77. IMPORTANCE OF THE MIDDLEMAN.--The chief stages of shoe manufacture
may serve to illustrate the great importance of the middleman in
exchange. The middleman, anticipating a demand for beef and hides,
connects the cattle grower with the live-stock market. Still later it
is a middleman who offers raw hides to the tanner, and who sees that
the wholesale leather merchant comes into business contact with the
tanner. The banker or broker who connects the entrepreneur with the
money with which to set up a shoe factory may be called a middleman,
as may the individual who aids the entrepreneur in getting the
required amounts of land and labor with which to start manufacturing.
When, under the direction of the entrepreneur, the shoe has been
manufactured, it is often a middleman who connects the shoe wholesaler
with the finished product. The jobber who buys large quantities of
shoes from the wholesaler and sells them to the retailer in small lots
is a middleman. The advertising man whose description and pictorial
representation of the shoe causes the consumer to buy it of the
retailer is also a middleman.
78. NOT ALL MIDDLEMEN ARE SOCIALLY NECESSARY.--By coördinating the
work of these various individuals, many of whom are themselves
middlemen, the middlemen whom we have been describing allow the
community to secure the full benefit of the division of labor and of
exchange. Where there exist just enough middlemen to coördinate with
maximum efficiency the various industrial agents of a community, the
community gains. When, on the other hand, there are more middlemen at
work than are really needed to perform the work of industrial
coördination, the community loses. This loss is a double one: first,
the working energy of the superfluous middlemen is wasted, or at least
is applied uneconomically; second, middlemen are paid, directly or
indirectly, out of the product which they handle, so that the handling
of a commodity by an unnecessarily large number of middlemen means
higher prices for the ultimate consumers of that commodity. [Footnote:
The existence of superfluous middlemen constitutes a grave problem, to
which more and more attention is being given. Various aspects of this
problem are discussed in Chapters XII and XXV.]
79. BARTER.--We have seen _what_ the middleman does; it remains to
point out _how,_ or by means of what mechanism, he performs his
functions. When savages, and civilized peoples living under primitive
conditions, wish to exchange their surplus goods, they generally
resort to barter, _i.e.,_ they exchange one commodity directly for
another. Where the division of labor has been so little developed that
the 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 have
great difficulty in finding a man who had a surplus piano and who also
desired cattle. Even though the farmer liked the piano in question,
and even though the owner of the piano were pleased with the farmer's
cattle, it might be impossible to measure the value of the piano in
units of cattle.
80. NATURE AND FUNCTION OF MONEY.--To facilitate exchange civilized
peoples make an extensive use of money. Money may be defined as
anything that passes freely from hand to hand as a medium of
exchange. [Footnote: The terms "money" and "capital" are often used
interchangeably. Strictly speaking, however, money is a form of
capital. Moreover, it is only _one_ form of capital] In modern times
gold, silver, nickel, and copper coins have been the most familiar
forms, though paper currency is also an important form of money. There
is nothing mysterious about money: it is simply a means of
facilitating exchange by saving time and by guaranteeing accuracy in
measuring the relative values of commodities.
Let us see how money actually aids in the exchange, say, of cattle and
pianos. The farmer disposes of his cattle to a middleman, receiving in
return money, the authenticity of which is guaranteed by the
government's stamp upon its face. There is no difficulty in making
change, for money can be so minutely divided as to measure the value
of an article rather exactly. The farmer does not fear that he could
not use the money received for the cattle, for money is generally
accepted in exchange for any commodity. The farmer now offers the
money to the piano-owner, who is probably a middleman. Again the fact
that money is finely divisible allows an accurate money measure of the
value of the piano. The owner of the piano, if he is satisfied with
the amount of money offered, does not hesitate to accept the farmer's
money, since he, too, realizes that he can use the money to purchase
the things that he in turn desires.
81. VALUE AND PRICE.--We have used the term "value" several times; as
part of our preparation for the study of the great problem of
industrial reform, we must understand precisely what is meant by the
term.
Suppose, for the sake of clearness, that we speak of a market as a
definite place where goods are bought and sold. Individuals take or
send their surplus products to the market for sale; individuals
desiring to buy commodities likewise resort to the market. In the
market commodities are said to have value, that is to say, they have
power in exchange. The power of a commodity in exchange is measured in
money, and the amount of money for which a commodity will exchange is
called its price. Price is thus a measure, in terms of money, of the
value of a commodity.
The value of a commodity in the market is dependent, partly upon its
utility, or want-satisfying power; and partly upon its scarcity. In
other words, the value of a commodity depends partly upon the
intensity with which it is desired by persons able and willing to
purchase it, and partly upon its available supply. Price is set as the
result of the interaction of the forces of supply and demand, this
interaction commonly taking the form of a bargaining process between
prospective sellers and prospective buyers.
QUESTIONS ON THE TEXT
1. Explain clearly the relation between the division of labor and
exchange.
2. To what extent is exchange dependent upon transportation and
communication?
3. Name three types of coördinators, and distinguish between them.
4. Illustrate the functions of the middleman with reference to the
shoe industry.
5. Where there exist in a community more middlemen than are really
needed, 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, and
xxiv.
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 used
as 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 and
practice 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 by
the 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 section
tend to specialize? To what extent is this specialization due to the
nature of the soil and climate? To geographical location? To the
training of the people?
2. What becomes of the surplus products of your section? Trace these
products as nearly as possible to the ultimate consumer.
3. List the articles of food which appear on your dinner table and
attempt to discover the source of each.
4. To what extent does the exchange of products in your section take
place by means of canals, inland waterways, ocean-going vessels, motor
truck, horse teams, railroads?
5. To what extent are the telephone and telegraph used to facilitate
exchange in your section?
6. Visit a near-by market and study the operations there, with
reference 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 century
ago. (Bogart and Thompson, _Readings in the Economic History of the
United States_, pages 240-251.)
9. Transportation and communication in the United States since 1860.
(Bogart, _Economic History of the United States_, chapters xxiv and
xxv.)
10. Early forms of money. (Bullock, _Selected Readings in Economics_,
pages 387-399.)
11. Forms of money at the present time. (Adams, _Description of
Industry_, chapter x.)
12. Why coinage is necessary. (Bullock, _Selected Readings in
Economics_, 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, _Selected
Readings in Economics_, pages 325-333.)
18. The development of business organization. (Marshall and Lyon, _Our
Economic Organization_, chapters ix and x.)
CHAPTER IX
DISTRIBUTING THE INCOME OF INDUSTRY
82. THE PROBLEM PRIOR TO THE INDUSTRIAL REVOLUTION.--The distribution
of industrial income has to do with dividing the products of industry,
or the money which represents those products, among the various
individuals who have aided in their creation.
The problem of distribution has existed ever since men first combined
for purposes of production, but until the period of the Industrial
Revolution the question was relatively unimportant. When, three
hundred years ago, most necessities were produced within the family
circle, there was little or no question as to whether or not
individuals outside the family ought to be rewarded for having helped
in the production of those commodities. If one member of the family
made an entire pair of shoes, for example, he was clearly entitled to
those shoes, at least so far as economic principles are concerned.
Even where different members of the family combined to produce a pair
of shoes or an article of clothing, the small number of persons
involved, as well as the close identity of interests among the family
members, kept the problem of distribution from becoming a serious one.
83. EFFECT OF THE INDUSTRIAL REVOLUTION UPON THE PROBLEM.--The
Industrial Revolution greatly increased the importance of the problem
of distribution. Indeed, the growth of the factory system, and the
greater and greater complexity of the division of labor, have made the
distribution of industrial income the basic problem in our economic
and social life. Many commodities are still produced by individuals
working independently, or by the joint efforts of the members of a
family, but the vast majority of commodities are now produced by the
joint efforts of numerous individuals who are not bound together by
family ties. The production of a factory-made shoe, for example,
involves large numbers of people, including the cattle grower, the
transportation agent, the tanner, numerous laborers, the individuals
who supply land and capital to the entrepreneur, and the entrepreneur
who conducts the enterprise. The welfare of millions of people is
involved in the distribution of industrial income among individuals
who coöperate in such enterprises as this.
84. DIFFICULTY OF THE PROBLEM.--Under modern industrial conditions
most commodities are produced by the combined efforts of large numbers
of people. All these people help along the productive process, though
in different ways and to a varying degree. Since all help, all are
entitled to payment. But this is less simple than it sounds. How shall
we determine how much each one helps, and how shall we decide how much
each 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 enterprise
must be paid out of the value of the finished product, the combined
sums received by them cannot long exceed the total value of that
product. Unfortunately, this fact is often overlooked. Many of the
individuals who aid in production often become so intent upon securing
their share, that they are over-ready to explain their contribution to
the product, but loath to give due credit to those who have coöperated
with them. It is the belief that some individuals receive too little
of the joint income of industry, while other individuals receive too
large a share, which has given rise to the charge of injustice in the
distribution of wealth.
85. SIGNIFICANCE OF THE ENTREPRENEUR IN DISTRIBUTION.--For the sake of
clearness, let us continue to illustrate the nature of distribution by
reference to the shoe industry, carried on under conditions which are
not unduly complicated.
The individual having control of the actual manufacture of the shoes
is the entrepreneur. It is he who, in anticipation of a demand for
shoes, has initiated the enterprise. Suppose, for the sake of
simplicity, 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 set
himself up as a manufacturer of shoes. Since he is in control of the
enterprise, it is he who pays the land-owner, the capitalist, and the
laborers, for their respective contributions toward the finished
shoes.
The amounts received by the individuals coöperating with the
entrepreneur are not, however, arbitrarily determined. The
entrepreneur must bow to economic law, and give these individuals what
free competition in industry sets as a proper reward for their
respective services. Let us examine into this conformity to economic
law.
86. THE LAND-OWNER RECEIVES RENT.--The land-owner is rewarded because
he extends the use of land to the entrepreneur. A land-owner could not
be expected to, and will not, allow the entrepreneur free use of this
land. 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 for
the use of the land because upon it he expects to build a factory in
which to manufacture shoes. He therefore pays the land-owner an amount
of money called rent. The amount of rent paid for a piece of land
depends partly upon how much the entrepreneur wants the land, and
partly upon the available supply of land of the type wanted. This is
equivalent to saying that rent is determined by the interaction of the
two forces of supply and demand.
87. THE CAPITALIST RECEIVES INTEREST.--Besides land, the entrepreneur
needs machinery, office equipment, raw materials, the services of
laborers, and numerous other aids in production. Let us assume that
the entrepreneur borrows of a capitalist the money required to procure
these necessities. The entrepreneur can afford to pay interest for the
use of this money, since with the aid of the goods and services which
it will buy, he can produce more shoes than would otherwise be
possible. Not only can he afford to pay interest, but he is obliged to
pay it, since otherwise he could not secure the required loan. Though
some people tend carelessly to overlook this fact, saving and
abstinence are necessary to the accumulation of money. The individual
who has money, therefore, cannot be expected to allow the entrepreneur
to use it without payment, especially not when, as we have just seen,
the entrepreneur can acquire wealth by the use of the goods and
services which that money will buy.
The amount of interest which the capitalist receives for the use of
his money will depend, as will rent, upon the law of supply and
demand. If there is a large amount of funds available for investment,
and at the same time few borrowers, then a given capitalist must be
content to accept a relatively low rate of interest, lest his refusal
cause the entrepreneur to close a bargain with a competing capitalist.
If, on the other hand, available funds are scarce and entrepreneurs
are greatly in need of money, then capitalists are at an advantage and
entrepreneurs must offer relatively high rates of interest.
88. THE LABORERS RECEIVE WAGES.--The payment which the laborers
receive for their part in the production of the shoes is called wages.
Since the laborers help in shoe manufacture, the employer can afford
to pay them. Not only can he afford to pay them, but he must pay them.
Otherwise the laborers would not work for this particular
entrepreneur, but, in a freely competitive market, would offer their
services to a competing employer.
Wages, like rent and interest, depend upon the conditions of supply
and demand. If, in comparison with other aids in production, the
services of laborers are wanted badly, and if, at the same time, there
is 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 a
small 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 producing
the shoes, the entrepreneur must pay taxes to the government. These
taxes may be considered as payment for that maintenance of law and
order without which the economical manufacture of shoes would be
impossible. The share which goes to the government is determined by a
unique method: the government does not try to secure as large a share
of the product as possible, but strives, on the contrary, to exact as
little as possible, and still meet its expenses. The subject of
taxation requires special treatment [Footnote: See Chapter XXXII.] and
does not, therefore, call for further mention in this chapter.
90. THE ENTREPRENEUR RECEIVES PROFITS.--That share of the income
derived from the sale of the shoes which goes to the entrepreneur is
called profits. It is only fair that the entrepreneur receive some
reward, for it is he who conceived the idea of shoe manufacture and
then carried out the project. Without his efforts the land-owner, the
capitalist, and the laborers would not have combined in this
enterprise, with the result that there would have been fewer shoes in
the community. Fewer shoes would probably mean more expensive shoes.
And not only does the entrepreneur deserve some reward for thus adding
to the well-being of the community, but if he did not receive that
reward, he would not go to the trouble of initiating and maintaining a
shoe manufacturing establishment.
The share going to the entrepreneur is determined less exactly than is
the share of the land-owner, the capitalist, and the laborers. In
dividing up the income of the business, the shoe manufacturer must, in
an important sense, put himself last. Before there are finished shoes
to sell, he must pay the land-owner rent, the capitalist interest, and
the laborers wages. Before he is allowed to count out his own share he
must also pay taxes to the government, pay insurance on his plant, and
set aside an amount sufficient to keep his buildings and machinery in
repair. He cannot evade the payment of rent, interest, or wages on the
plea that these payments will diminish his profits. He has contracted
to pay the landlord, the capitalist, and the laborers, and he must
fulfill that contract. If, after paying all of his expenses, there is
anything left, the entrepreneur retains it as profits. Sometimes this
share is very large, sometimes it is so small as to force the
entrepreneur out of business. In any case, the chief risks and
responsibilities of the whole enterprise are concentrated upon the
entrepreneur, rather than upon the land-owner, the capitalist, or the
laborers.
91. THE DETERMINANTS OF EACH SHARE.--To sum up, the share of the joint
industrial income going respectively to the land-owner, the
capitalist, and the laborers is determined by the interaction of the
forces of supply and demand, operating under conditions of free
competition. The entrepreneur's demand for land, labor, or capital
will depend upon whether or not he sees an opportunity, under a
particular set of circumstances, to add to his product by the
employment of each or all of these factors. Where the supply of
laborers is large, relatively to demand, the promised product of any
one laborer is likely to be relatively small, and in this case the
entrepreneur or employer will be unwilling or even unable to offer a
particular laborer high wages. Under these circumstances the
competition of the many laborers for the few jobs will accordingly
bring about lower wages. Where, on the other hand, the supply of
laborers is small, relatively to demand, the chances that a particular
laborer will be able to add to the product are relatively great, and
the competition of employers for laborers will result in higher wages.
The same reasoning is applicable to rent and interest. The automatic
operation of the law of supply and demand, functioning in a freely
competitive market, determines the shares which go to land, labor, and
capital. The share going to the individual entrepreneur is, as has
already 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 to
the Industrial Revolution?
3. In what way did the Industrial Revolution accentuate the importance
of the problem of distribution?
4. What are the chief difficulties which confront the student of this
problem?
5. What belief has given rise to the charge of injustice in the
distribution 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 different
occupations? (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, pages
335--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 or
most of the stages of manufacture in your community, as, for example,
a hammer, a shoe, flour or canned goods. Make a list of the various
individuals who are connected with the production of this commodity.
By whom are these various individuals paid? Does it appear to you that
their 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 a
tenant in your community. Why is the tenant willing to pay rent for
this plot? Why is he able to pay rent? Do you believe that under the
existing circumstances he would be able to pay an increase of 10% in
the rent? An increase of 50%? Explain.
3. Select for study an enterprise in your community in which the
employer utilizes various groups of workmen. Classify the workmen on
the basis of the amount of wages received. Why does the employer pay
some 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 with
him, the qualities to which he apparently owes his success.
5. Make a study of an enterprise in your community which has either
recently failed, or which is not now in a thriving condition. Attempt
to 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 of
the United States_, chapter v.)
8. Relation of public education to income. (Thompson, _Elementary
Economics_, pages 299-303.)
9. Reasons for the scarcity of capital. (Carver, _Elementary
Economics_, chapter xxxvi.)
10. The productivity of capital. (Taussig, _Principles of Economics_,
vol. ii, chapter xxxviii.)
11. Historical changes in the rate of interest. (Bullock, _Selected
Readings in Economics_, pages 563-568.)
12. The rent of land. (Carver, _Elementary Economics_, chapter
xxxiii.)
13. Causes of the scarcity of labor. (Carver, _Elementary Economics_,
pages 270-271.)
14. Historical changes in the rate of wages. (Bullock, _Selected
Readings in Economics_, pages 533-543.)
15. The nature of profits. (Carver, _Elementary Economics_, chapter
xxxvi.)
16. Relation of profits to risk. (Taussig, _Principles of Economics_,
vol. ii, chapter xlix, section 1.)
17. Qualities of a successful entrepreneur. (Taussig, _Principles of
Economics_, 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, _Elementary
Economics_, chapter xxxvii.)
CHAPTER X
BASES OF THE CAPITALISTIC SYSTEM
92. THE "CAPITALISTIC SYSTEM."--Modern industry is sometimes said to
be headless, because the numerous individuals engaged in it are not
systematically controlled or directed by a single agency. It is often
said to be planless, since laborers, employers, and other industrial
agents concentrate upon their individual desires and needs, rather
than 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 the
preceding three chapters. This circumstance prevents us from
concluding that our industrial life is entirely a haphazard affair. It
may, indeed, be said that we have an industrial system. Because of the
great importance in it of capital, this system is commonly known as
the "capitalistic system." The underlying principles of this system
have already been mentioned or implied; nevertheless it will be to our
interest in this chapter to develop and organize these principles so
as to indicate just how they constitute the bases of capitalism.
93. ATTITUDE OF GOVERNMENT TOWARD INDUSTRY.--"It is the duty of the
government," Gladstone once said, "to make it easy for the people to
do right, and difficult for them to do wrong." According to the theory
of the capitalistic system, that is "right" which renders the
individual and the community stronger, happier, and more prosperous in
useful pursuits, while that is "wrong" which weakens or demoralizes
the citizen and the community. The chief economic function of
government is thus to discourage men from harmful and destructive
acts, and to encourage them in activities which are helpful and
productive.
Professor Carver points out that the method by which animals get their
living is either destructive, deceptive, persuasive, or productive.
Any one of these four methods may at least temporarily increase the
well-being of the individual, but only the productive method is
certain to benefit the community as well. A good government will
therefore seek to prevent people from advancing their individual
interests by killing, robbing, or deceiving their fellows. This
suppression of violence and fraud leaves open to individuals only the
productive method of getting a living, so that they cannot benefit
themselves without at the same time adding to the prosperity of the
community. From the standpoint of capitalism, thus, a good government
maintains an attitude toward industry which is primarily negative:
such a government hampers the economic activities of individuals very
little or not at all, so long as they do not practice harmful methods
of getting a living.
94. PRIVATE PROPERTY.--Most men are self-centered. In even a highly
developed society, men ordinarily will not work consistently except in
their own behalf, or in the behalf of a very few people for whom they
care intensely. This instinct of self-interest is the kernel of
industrial progress, but it can result in material prosperity only
when government suppresses violence and fraud. The lowest savages are
undoubtedly self-centered, but so long as they must rely upon brute
force to retain their possessions, there is little inducement to
acquire wealth. It is only when law suppresses robbery and fraud, and
otherwise protects the individual in his property rights, that the
acquisitive instinct will cause him to exert himself in productive
ways. Because it satisfies the individual's desire to secure the good
things of life, the institution of private property is the greatest
known spur to economic activity, It is only in those countries where
individuals are protected in their property rights that we find an
active, progressive, and prosperous people.
95. ENFORCEMENT OF CONTRACTS.--We have already seen that among the
members of a modern industrial society there is a high degree of
interdependence, corresponding, in an important sense, to the
interdependence between the parts of a machine. As we have seen, the
typical individual in industry is a specialist, concentrating upon one
particular kind of work, and depending upon his fellows to supply him
with goods and services which he cannot supply for himself. Now, such
a condition of interdependence could never have arisen were it not for
the fact that government fosters the spirit of confidence among
individuals. Many persons can be trusted to fulfill the agreements or
contracts which they make with their fellows, but many cannot. A prime
function of government, therefore, is to enforce contracts entered
into voluntarily and in legal form. This is clearly essential to our
material prosperity, for if men are to rely upon the word of those who
sell 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 productive
activities, and it will insist upon the fulfilment of lawful
contracts. Subject to these two limitations, individuals are
relatively free to seek their own well-being. But an earmark of
economic goods is scarcity, that is, there are at a given time and
place fewer of them than are desired. Men must therefore compete with
one another for goods and services. The lower animals compete for food
with tooth and claw; among civilized men government tries to raise
competition to an ethical plane by tending to suppress all but the
productive methods of competition.
Where competition is so restricted and safeguarded, advocates of
capitalism assert that the results are overwhelmingly good. Where
there is free competition, _i.e._ free competition in productive
enterprise, employers commonly pay their laborers as high a wage as
they feel is justified under the particular circumstances, lest their
workmen 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 is
neither an oversupply or an undersupply of either employers or
employees.
Where, again, there is free competition in productive enterprise, the
price of commodities produced by a given concern cannot rise too far,
for consumers will either buy those commodities of rival producers, or
will use substitutes. If, on the other hand, prices drop so low that
producers 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 with
the interests of the community, by making the success of the
individual depend primarily upon what he accomplishes for his fellows.
97. VALUE UNDER CONDITIONS OF FREE COMPETITION.--In a competitive
market, as we have seen, value depends upon scarcity and utility. No
one will ordinarily pay for a commodity unless it will satisfy his
wants, i.e. unless it has utility. But even though a commodity has
utility, no one will ordinarily pay for it unless it is so scarce that
he 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 can
ordinarily 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 utility
and scarcity. Diamonds are high in price because they satisfy intense
desires and are scarce; bread is cheap because while possessing great
utility, it is relatively abundant. Skilled labor receives high wages
because in addition to its utility it is relatively scarce; unskilled
labor often receives low wages because while possessing utility it is
relatively abundant. This principle is of the very greatest
consequence, and in considering the programs of industrial reform we
shall come back to it again.
98. FREEDOM.--A large measure of personal liberty is a characteristic
of the capitalistic system, To an increasing extent, government is
restricting economic activity to productive channels, but with this
qualification, the individual is comparatively free to do as he likes.
The laborer is free to move about in search of work, free to seek a
better job, free to accept or to reject work offered him. He may
abandon his job when he chooses, and remain idle as long as he
chooses, or is able. He is repressed by no paternalistic government,
embarrassed by no feudal system. He is part and parcel of the
competitive system, guiding his own actions and accepting
responsibility for them. To a large extent, the employer is similarly
free to hire or discharge men as he sees fit, to initiate a new
business, or to withdraw from business altogether. In every case the
individual is free, so far as legal restrictions are concerned, to use
his money as he chooses. Whether it is hoarded, invested, or wasted is
largely a matter for him to determine.
99. BENEFITS OF THE CAPITALISTIC SYSTEM.--The material prosperity of
the modern world has been attained under the capitalistic system of
industry. The system was not invented, but has developed and spread
from small beginnings because the experience of centuries has proved
it to be the best known system which is applicable to human industry.
The starting point of all material prosperity has been the gradual
development of government which suppresses violence and fraud, which
enforces contracts, and which makes possible the rise of the
institution of private property. The inception of the Industrial
Revolution, and its spread beyond England to Europe, America, and,
later, to Asia, were possible only because these bases of capitalism
were already laid. To a large extent, thus, the steam engine, the
railroad, the steamship, the electric light, and countless other
inventions which have helped to revolutionize the world we live in,
may be traced directly or indirectly to individual freedom and to the
protection of property rights. In so far as science, art, and
literature depend, to a considerable degree, upon material prosperity,
we may go so far as to say that capitalism is the most important
single basis of modern civilization.
100. DEFECTS OF THE CAPITALISTIC SYSTEM.--But capitalism is not
without its defects. The lack of centralized control in industry
allows of planless production. [Footnote: During our participation in
the World War, it is largely true that much of the productive energy
of the country was organized and directed as a unit. This was a
temporary expedient, however, resorted to for the purpose of winning
the war.] Entrepreneurs frequently produce without adequate knowledge
of demand, and without knowledge of rival production. When business is
booming and profits are high, it often happens that so many
individuals go into business that eventually there is over-production,
i.e. there are more goods at a particular time than can be sold at a
profit. Crises, unemployment, and "hard times" are often the direct
result 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 uneconomical
expenditure of labor and capital. There is no adequate method of
directing labor and capital toward the production of durable and
helpful commodities, and away from the production of luxuries and such
harmful commodities as have not been made illegal. Under competitive
conditions, too, a number of shops or stores may exist in a community
that might easily be served by a single firm. This is wasteful
duplication, just as advertising is a waste when it goes beyond the
point of informing the public as to whereabouts and character of
commodities. Still another source of waste is traceable to an
excessive number of middlemen, each of whom adds to the price of the
product as it passes through his hands.
101. THE INEQUALITY OF WEALTH.--In all of the great industrial
countries of the world, including the United States, the existing
distribution of wealth is roughly in the form of a pyramid, i.e., at
the top or apex of the pyramid there is a relatively small number of
persons who enjoy large incomes, while at the base there is a large
number with relatively small incomes. This inequality is explained by
Professor Taussig on two grounds: First, it is likely that some
individuals originally secured an economic advantage over their
fellows because of inborn superiority of some kind. Second, the
economic advantage thus secured has been maintained from generation to
generation by inheritance. Where, for example, wealth is invested so
that the principal remains intact while a large annual income is
thrown off as interest, the heirs may live in affluence, regardless of
ability or desert. Thus we have a leisure class emerging as the result
of inborn differences between men, supplemented by the accumulation of
wealth and its transmission by inheritance.
102. THE QUESTION OF INDUSTRIAL REFORM.--It goes without saying that
great inequalities in the distribution of wealth are undesirable. If
any improvement is humanly possible, we ought not to rest content so
long as millions of our citizens have too few of the good things of
life, while others have much more than is necessary for comfort and
happiness. The test of an economic system is whether or not it
provides a good world to live in, and so long as large numbers of
individuals have fewer necessities and comforts than it is possible to
give them, our economic system must be considered defective. The
people as a group are both the means and the end of progress.
Democracy cannot rest upon any other basis than the greatest good to
the greatest number.
103. APPROACHING THE PROBLEM.--In approaching the problem of
industrial reform it is necessary to cultivate a fair and sane
attitude. We must attack all of the problems of American democracy,
certainly. But in so far as some of these problems involve the
integrity of the capitalistic system, we should distinguish between
ills which are clearly traceable to that system, and defects which
obviously would exist under any industrial system. Capitalism cannot
be discredited, for example, by pointing out that crime exists in all
capitalistic countries. Though capitalism may accentuate some types of
crime, our knowledge of human nature leads us to suspect that a
considerable amount of crime would exist under any known system of
industry. Again, criticism should be constructive; it is easy to point
out the defects of an institution, but it is quite another thing to
provide a good substitute for that institution.
The problem before us is a double one: First, can we remedy the
defects of the capitalistic system? And, if so, by what method shall
we proceed? Second, if the defects of capitalism cannot be remedied,
what industrial system shall be substituted for capitalism? It is not
a question of whether or not capitalism is faulty, but of whether it
is more faulty than the system that would be substituted for it. The
virtues of capitalism, most authorities believe, clearly outweigh its
defects, and though some other system may eventually prove to have as
great virtues with fewer defects, the burden of proof is upon those
who advocate other systems than capitalism. Until the advantage is
clearly shown to be on the side of a rival system, it will be wise to
retain 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 encouraged
by a good government?
4. To what extent is the attitude of a good government toward industry
a negative one?
5. What is the relation of government to the institution of private
property?
6. What is the importance of laws requiring the enforcement of
contracts?
7. Why is there competition?
8. How does competition tend to harmonize the interests of the
individual 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 this
situation?
15. What facts should be borne in mind in attacking the problem of
industrial 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, pages
10-12.)
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, page
126.)
8. What was the effect of the domestication of animals upon the
institution 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 possession
of property belonging to you. What steps would you take to secure
justice?
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 large
quantity of flowers from a greenhouse keeper for your Decoration Day
trade. Assume that you could not sell the flowers at a profit if they
arrived later than Decoration Day. Assume, also, that you have reason
to suspect that the greenhouse keeper will not be prompt in delivering
the flowers ordered. Draw up a contract (to be signed by him) which
would protect you against his tendency to carelessness.
4. Select for study an isolated rural district, a small town, or a
section of a suburb in which the community secures its supply of a
given commodity from a single shop or store. Compare the price of the
commodity, and its quality, with the price and quality of a similar
commodity in stores located in communities served by several competing
stores. What do you conclude as to the value of competition?
5. Make a study of bill-board advertising, listing the number of
advertisements inviting purchase of competing commodities. Write to a
bill-board advertising company for advertising rates, and draw your
conclusions as to (_a_) the cost of advertising, and (_b_) the waste
involved in advertising competing commodities.
Make a similar study of magazine advertising, writing to the
advertising manager of the magazine selected for study, in order to
secure 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, _Elementary
Economics_, page 40.)
9. The development of economic freedom. (Seligman, _Principles of
Economics_, chapter xi.)
10. Distribution of wealth in the United States. (Taussig, _Principles
of Economics_, vol. ii, chapter liv; King, _Wealth and Income of the
People of the United States_, chapter ix.)
11. Place of machinery in the capitalistic system. (Hobson, _Evolution
of Modern Capitalism_, pages 27-29.)
12. The impersonality of modern life. (_Lessons in National and
Community 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 under
which all public revenue is to be raised by a single tax on land
value. All other taxes are to be abolished. By land value is meant the
value of the land itself, irrespective of all improvements, such as
ditches, drains, and buildings. Everything done on the land to
increase its value would be counted as an improvement, and would thus
be exempt from taxation. This would leave only location value and
fertility to be taxed. By location value is meant that value which is
due to the situation of the land. For example, land in a wilderness
has little or no location value, but if, later, schools, stores,
railroads, and other elements of community life develop in that
region, the land may take on great value because of its location in
the community. The fertility value of land is that value which is due
to natural endowment in the way of moisture, climate, and soil
elements.
105. HENRY GEORGE AND HIS WORK.--The doctrine of single tax is closely
associated with the name of Henry George, an American reformer who
died in 1897. His theory was best developed in his book, _Progress and
Poverty_, published in 1879. In this book George points out that in
spite of the progress of the world, poverty persists. This is due
chiefly, he contends, to the fact that land-owners take advantage of
the scarcity of good land to exact unduly high prices for its use.
According to George, this monopoly of the gifts of Nature allows
landowners to profit from the increase in the community's
productiveness, but keeps down the wages of the landless laborers.
"Thus all the advantages gained by the march of progress", George
writes, "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 the
inequalities of wealth. Value due to improvements was to be exempt
from taxation, so that land-owners might not be discouraged from
making improvements on their land. On the other hand, it was proposed
that the single tax take all of the income due to location and
fertility. This, according to George, would "render it impossible for
any man to exact from others a price for the privilege of using those
bounties of Nature to which all men have an equal right."
106. RESULTS CLAIMED FOR THE SINGLE TAX.--George claimed that the
application of the single tax was highly desirable. If, through the
medium of this tax, the government were to take from the land-owners
all the location and fertility value of their land, two great benefits
were to result. First, rich landlords would be deprived of much
unearned wealth. Second, the wealth so secured, called the unearned
increment, 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, abolish
poverty, give remunerative employment to whoever wishes it, afford
free scope to human powers, lessen crimes, elevate morals and taste
and intelligence, purify government, and carry civilization to yet
nobler heights." The steps by which George arrived at this gratifying
conclusion are obscure, and practically every modern economist agrees
that too much has been claimed for the theory. Nevertheless, there is
much to be said on both sides of this interesting question.
107. ARGUMENTS FOR THE SINGLE TAX.--Single taxers claim that it is
just to take from land-owners that land value which is not due to
their individual efforts. Fertility, on the one hand, is due
originally to the bounty of Nature, and as such belongs to all men
alike, rather than to particular individuals. Location value, on the
other hand, is due to community growth, and should therefore be taken
for the benefit of the community at large.
A very strong argument in favor of the single tax is that land cannot
be hidden from the tax assessor, as can stocks, bonds, jewels, and
other 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 discourage
industry. Location value is largely or entirely due to community
growth, rather than to the efforts of the individual land-owner.
Fertility, of course, is largely a natural endowment, and as such
cannot be destroyed by a tax. The land would continue to have all of
its location value, and probably much of its fertility value, whether
or not the owner were taxed.
Another argument is that a single tax on land would eliminate taxes on
live stock, buildings, and all other forms of property except land,
and that this would encourage the development of the forms of property
so exempted. This would stimulate business.
It has also been said that the single tax would force into productive
use land which is now being held for speculative purposes. It is
claimed that many city tracts remain idle because the owners are
holding them in the hope of getting a higher price in the future.
According to the single taxer, a heavy tax would offset this hope of
gain, and would force speculators either to put the land to a
productive 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 might
force into productive work certain capable individuals who are now
supported in idleness by land rents. Professor Carver has pointed out
that if the single tax deprived such persons of their incomes, they
would be forced to go to work, and thus the community would gain by an
increase in the number of its productive workers.
108. ARGUMENTS AGAINST THE SINGLE TAX.--The most important objection
to the single tax is that the confiscation of land, or, what amounts
to the same thing, the confiscation of the income which land yields,
is unjust. "Pieces of land," Professor Seager points out, "have
changed hands on the average dozens of times in the United States, and
present owners have in most cases acquired them not as free gifts of
Nature, nor as grants from the government, but by paying for them,
just as they have had to pay for other species of property." Where
individuals have acquired land in good faith, and under the protection
of a government which guarantees the institution of private property,
the confiscation of land value would be demoralizing to the community
and unfair to its land-owning citizens.
Another difficulty lies in the ease with which value due to permanent
improvements is confused with value due to location or fertility.
Where money has been expended in draining land, removing stones or
applying fertilizer, it is hard to tell, after a few years, what part
of the value of the land is due to improvements. The possibility of
this confusion would cause some land-owners to neglect to improve
their land, or might even cause them to neglect to take steps to
retain the original fertility. Thus the single tax might result in the
deterioration of land values.
It is also objected that the single tax would provide an inelastic
taxation system. This means that it would tend to bring in an equal
amount of revenue each year, whereas the revenue needs of government
vary from year to year. A good tax system will accommodate itself to
the varying needs of the government, always meeting the expenses of
government, but at the same time taking as little as possible from the
people. [Footnote: Some opponents of the single tax declare that the
heaviest possible tax on land would yield only a fraction of the
revenue needed to finance the government. Single taxers, however,
maintain that the tax would yield more than enough revenue to meet
public expenditures. The merits of this argument are uncertain.]
It is doubtful whether the single tax would force into productive use
land now being held by speculators. Even though a heavy tax were laid
upon such land, it would not be utilized unless there were an
immediate use to which it could profitably be put.
A last important argument against the single tax is that there is no
good reason for removing the tax burden from all except land-owners.
Land is only one form of wealth, and it is unfair not to tax
individuals who hold property in some other form. Some land value is
indeed unearned, but there are other forms of unearned wealth, as, for
example, monopoly gains and inherited property. Taxes ought to be
levied upon these forms of unearned wealth, as well as upon the
unearned income from land. It is desirable, too, to levy at least a
light tax upon the propertyless classes, in order to encourage them to
feel an interest in, and a sense of responsibility for, the conduct of
their government.
109. SERVICE RENDERED BY THE SINGLE TAX AGITATION.--Economists are
unanimous in agreeing that the single tax, as expounded by Henry
George, is too drastic and special a reform to find wide favor.
Nevertheless, the single taxers have performed a valuable service by
emphasizing the fact that in many cases the income from land is
largely or entirely unearned. It would be manifestly unjust to
dispossess present-day land-owners who have acquired land in good
faith; on the other hand, most economists agree that we ought to
reform our tax system so as to take for the community a larger share
of the future unearned increment of land values. As Professor Taussig
has pointed out, no one has a vested right in the indefinite future.
The taking of this future unearned increment, it is hardly necessary
to add, would not constitute a single tax, but rather a heavy land
tax. Many other taxes would continue to be levied. [Footnote: The
general 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 an
application 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 unearned
increment 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 of
this practice to the single tax? (Carver, pages 375-376.)
5. What, according to George, would be the effect of the single tax
upon production? (George, book ix, chapter i.)
6. What, according to George, would be the effect of the single tax
upon 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 same
neighborhood? Why?
(c) To what extent is the value of the plot selected for study due to
natural fertility?
(d) To what extent is the value due to location?
(e) To what extent is the value due to permanent improvements, such as
drains, ditches, hedges, fences, or the use of fertilizer to retain or
increase 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 the
single tax program?
2. Select for study a plot of ground in your locality which has been
idle 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 speculative
purposes?
(c) If so, suppose that a very heavy tax stimulated the owner to put
the land to some use. Do you know of a productive use to which it
could be put?
II
3. The life of Henry George. (Consult an encyclopedia.)
4. The economic background of Henry George's doctrine. (Young, _The
Single 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 Tax
Movement in the United States_, chapter xii.)
7. Relation of the single tax to socialism. (Young, _The Single Tax
Movement 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 is
that the workmen in a given enterprise receive, in addition to their
regular wages, a share in the profits which would ordinarily go
entirely to the entrepreneur. The share going to the employees varies
with the establishment, but generally from one quarter to three
quarters of the profits are divided among them.
Distribution is by various methods. The workmen may receive their
share in cash at the end of the year. Sometimes the money is placed in
a provident fund for the workmen as a body; in other cases it is
deposited in savings banks to the account of the individual workmen.
In still other cases the workman's share is invested in the business
for him, the workman thereafter receiving dividends on this invested
capital.
In every case, however, the division of profits among the individual
laborers is on the basis of the wages received, that is to say, the
higher the regular wage received by a workman, the larger will be his
share of the profits set aside for distribution. Generally, too, only
workmen who are steadily employed are allowed to share in the
distribution of profits.
111. LIMITS OF PROFIT SHARING.--Profit sharing was once considered a
remedy for many of our industrial troubles, but it is now generally
conceded that the plan is decidedly limited in scope. Profit sharing
increases the income of the workmen involved, but for this very reason
it is often bitterly opposed by the trade unions. The unions fear, of
course, that the plan will make the workmen interested chiefly in the
employees of their particular establishment, rather than in the
workmen in the trade as a whole. The trade unions also maintain that
profit sharing is often administered in a patronizing manner, which is
offensive to the self-respect of the workmen.
To a large extent, the spread of profit sharing depends upon the
development of altruism among employers. But unfortunately altruistic
employers are rare, and the majority of entrepreneurs will not adopt
the profit-sharing plan unless it promises to result in some distinct
advantage to themselves. This attitude explains, in part, the failure
of many profit-sharing experiments. Employers have sometimes tried out
profit sharing in the hope that it would prevent strikes and other
labor troubles. In some cases this expectation has been realized; in
many other cases serious labor troubles have continued. This
continuance of labor troubles has rendered profit sharing less
attractive to certain types of employers.
In certain cases employers have experimented with profit sharing in
the hope that it would stimulate efficiency and economy on the part of
the workmen. Sometimes the immediate effect of the adoption of the
plan has been to make the workmen more efficient and more interested
in their tasks, but after the novelty of the scheme has worn off they
have generally fallen back into their former pace. In justice to the
workmen, it should be noted here that in most enterprises the
conditions of the market and the employer's managerial ability have
more influence upon profits than have the personal efforts of
individual workmen. Where workmen realize this, they tend to lose
faith in their ability to influence the share accruing to them under
the profit-sharing plan.
A last important reason why profit sharing is limited in scope is that
in many hazardous enterprises, such as mining, agriculture, fishing,
or building construction, the refusal and inability of the workmen to
share in possible losses prevent the adoption of the plan. A mining
corporation, for example, may make large profits one year, and lose
heavily the second year. Profit sharing is here inadvisable, if not
impossible. The distribution among the workmen of a large share of the
profits accruing at the end of the first year might so deplete the
financial reserves of the entrepreneur that he would be unable to meet
the losses of the second year.
B. COÖPERATION
112. RELATION OF PROFIT SHARING TO COÖPERATION.--Profit sharing
permits the workmen to secure more than a regular wage from a given
enterprise, without, however, giving them any control over the
management of the business. Coöperation goes a step farther, and
attempts to dispense with either a number of middlemen or with the
managing employer, or with both middlemen and employer. In the case of
a profit-sharing scheme in which the share of the profits accruing to
the workmen is invested in the business for them, ultimate control of
the enterprise may come into the hands of the workmen through profit
sharing. In such a case the plant might be conducted coöperatively. In
practically every instance, however, coöperation does not grow out of
profit sharing, but arises independently.
113. ESSENCE OF COÖPERATION.--The essence of coöperation is that a
group of individuals undertake to perform for themselves those
functions 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 are
divided among the coöperators; on the other hand, the risks of the
business must also be borne by them. Management of the enterprise is
conducted partly by officers or committees serving without pay, and
partly by paid agents. The general policies of the business are
settled by the coöperators acting as a body.
Coöperation seeks to exchange the centralized control of the business
man for the diffuse control of a group of coöperators. This
arrangement, its advocates hope, will permit wealth and power to be
distributed among more and more people, and especially among those
classes that possess relatively little property. Let us inquire
briefly into the four types of coöperation.
114. CONSUMERS' COÖPERATION.--Consumers' coöperation, also known as
distributive coöperation or coöperation in retail trade, is the most
common form of coöperation. It is also probably the most successful
form.
In this form of coöperation, a number of individuals contribute their
savings to a common fund, buy certain desired commodities at wholesale
prices, and distribute these among themselves. Generally, the
coöperative store sells to its members at the regular retail price,
but at stated intervals throughout the year the profits of the
business are distributed among the coöperatives in proportion to the
amount of their individual purchases. Thus the difference between the
wholesale and the retail price--minus the expense of conducting the
store--goes to the coöperators, instead of to a store keeper or other
middleman.
One of the best examples of consumers' coöperation is the Rochdale
Society of Equitable Pioneers, established in England in 1844. This
type of coöperation has also been remarkably successful in Germany,
Belgium, and other continental countries. The idea was taken up in the
United States about the middle of the nineteenth century, and at the
present time there are in this country about 2000 coöperative stores,
many of them doing a thriving business. These stores are located
chiefly in New England, the North Central States, and the West, few
being found in the South.
115. COÖPERATION IN CREDIT.--Credit coöperation may take any one of a
number of forms. In one of the best known forms, a group of persons
form a credit society by contributing a proportion of their personal
savings to a common fund. On the strength of this capital, and of
their own individual liability, they borrow more capital. The total
amounts thus got together are then loaned to the members of the
society at a specified rate of interest. This rate of interest is
higher than that at which the group had borrowed money from outside
sources; nevertheless, it is lower than the rate members would have to
pay if they individually sought loans at a bank. This is the aim of
coöperation in credit: to enable persons of small means to secure
loans without paying the high rates which as individuals they would
ordinarily have to meet, if, indeed, they as individuals could secure
loans under any conditions.
Credit coöperation has been most successful in Germany, particularly
among artisans and small farmers. It has also attained considerable
success among the small tradesmen and artisans of Italy. In the United
States coöperation in credit is less highly developed, but recently
its influence has been slowly increasing. In many cases it supplies
the principle underlying building and loan associations in this
country.
116. COÖPERATION IN MARKETING.--The coöperative principle has also
been applied to the marketing of agricultural products. In Denmark,
for example, it has been found that farmers can market their dairy
products coöperatively, and thus save for themselves much of the
profit that would otherwise go to commission agents and other
middlemen. A similar saving has been effected in Holland, Belgium,
and, to some extent, in France. Of recent years, coöperation in
marketing has become important in the United States, finding
particular favor among the farmers of the Middle and Far West. At the
present time there are in this country more than two thousand
coöperative cheese factories, and more than three thousand coöperative
creameries. There are also more than a thousand societies for the
coöperative marketing of fruit, as well as numerous live-stock selling
agencies.
117. COÖPERATION IN PRODUCTION.--The three forms of coöperation which
we have been considering seek to eliminate unnecessary middlemen from
industry. In producers' coöperation, on the other hand, the attempt is
made to get rid of the entrepreneur, or managing employer. A group of
workmen get together, subscribe or borrow the required capital,
purchase tools, materials, and plant, and set up as producers. They
seek markets for their product, direct the enterprise either as a
group 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 various
countries of Europe, but without success. True producers' coöperative
associations have also met with almost universal failure in the United
States, though experiments have been made in a variety of industries,
and in nearly every part of the country. Formerly the Minneapolis
Coöpers were a coöperative group which seemed destined to attain a
considerable success in production, but this group has now abandoned
the 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 commodities
produced by individual enterprisers.
118. BACKWARDNESS OF COÖPERATION IN THE UNITED STATES.--In all forms
of coöperation, progress has been much slower in this country than in
Europe. There are several reasons for this. For one thing, American
workmen move about to a greater extent than do European workmen,
whereas coöperation succeeds best where the coöperators have a fixed
residence and develop a strong sense of group solidarity. The fact
that our population is made up of diverse racial types likewise checks
the growth of the feeling of solidarity.
An important reason for the backwardness of the coöperative movement
in this country is that American workmen "make, rather than save
money," whereas coöperation requires thrift, and a willingness to
practice small economies. Again, the efficiency and progressiveness of
our industrial system renders coöperative ventures less necessary in
this country than in some parts of Europe. It is particularly true
that retail stores in the United States are more efficient than
similar shops in England and on the Continent.
Altogether, the most successful coöperators in this country are not
native-born Americans, but groups of Finns, Russians, Slovaks, and
other peoples of immediately foreign derivation. It is among these
groups that the thrift and group solidarity demanded by coöperation
are best found.
119. LIMITS OF COÖPERATION.--Consumers' coöperation, coöperation in
credit, and coöperation in marketing all seek to improve the
capitalistic system by eliminating some of the unnecessary middlemen
from our industrial life. In so far as this is true, these forms of
coöperation are desirable developments, and deserve to succeed. Though
the movement is limited by the considerations set forth in the
preceding section, it is to be hoped that these three forms of
coöperation will in the future show a considerable development in this
country.
Producers' coöperation is a different affair. Rather than attempting
to decrease the number of unnecessary middlemen, it attempts to
supersede the entrepreneur or managing employer where he is most
needed. For this reason producers' coöperation will probably continue
a failure. To run a modern business of any size at all requires a
degree of intelligence, imagination, judgment, courage, and
administrative ability which is altogether too rare to be found among
casual groups of laborers. Varied experience, high ability, the
determination to accept the risks of the enterprise, and a consistent
singleness of purpose are necessary in modern production. Even though
coöperators are able to secure an amount of capital sufficient to
initiate production, they rarely have the requisite ability or
experience; too often they object to accepting the risks of the
enterprise; practically never can they administer the business with
that unity of control which characterizes the most successful business
enterprises.
120. BENEFITS OF COÖPERATION.--While no longer considered a far-
reaching industrial reform, the coöperative movement brings with it
many benefits. Coöperation in retail trade, credit, and marketing cuts
down the waste between consumer and producer, and thus helps
substantially to reduce the cost of living. Coöperation in production,
though it fails to reach its chief objective, has the virtue of
demonstrating to groups of workmen that the entrepreneur is of far
more value in our industrial life than they might otherwise have
realized. Aside from these advantages, coöperation in any form is an
important educative force. It fosters the spirit of solidarity and
mutual helpfulness among members of a group or community. It teaches
thrift. It trains the coöperating individuals to exercise foresight
and self-control. Altogether the training which it affords is
productive 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 of
the 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 other
forms 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, page
88.)
6. Discuss voting rights under the Rochdale plan. (Harris, pages 90-
91.)
7. Describe the store service under the Rochdale plan. (Harris, pages
93-94.)
8. How does the Rochdale plan promote thrift? (Taussig, pages 348-
349.)
9. Why has coöperation succeeded in Great Britain? (Taussig, page
350.)
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 greatest
importance? (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 to
the Bureau of Labor Statistics at your State Capitol, asking for the
names and addresses of employers in your locality who have
experimented with profit sharing.)
2. Interview, or write to, an employer, explaining the essence of
profit sharing, and asking his opinion as to its practicability in his
business.
3. Interview, or write to, the officials of a trade union, regarding
their attitude toward profit sharing.
4. Write to the Coöperative League of America, 2 West 13th Street, New
York City, asking for free literature on coöperation in your section.
If any of the groups of coöperators in your section are found to be
close at hand, make a study of a typical coöperative group.
5. Draw up a plan for a coöperative buying club, and discuss with your
fellow 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 agricultural
product in your section. Send a description of the plan, giving
advantages, etc., to a farm journal in your section. (Consult Powell,
_Coöperation in Agriculture>/i>, chapter iv, and Coulter, _Coöperation
Among 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, and
others, _Profit Sharing,_ chapter vi.)
9. Relation of coöperation to advertising. (Harris, _Coöperation, the
Hope of the Consumer,_ chapter xix.)
10. Credit coöperation in Germany. (Fay, _Coöperation at Home and
Abroad,_ 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 New
England,_ chapters vi-ix.)
13. Coöperation among immigrants in New England. (Ford, _Coöperation
in New England,_ chapter iii.)
14. Coöperation in the fruit industries. (Powell, _Coöperation in
Agriculture,_ 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 at
Home 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 and
social reform. Sometimes a person whose viewpoint concerning politics
or business has become more liberal appears to himself or to others as
a socialist. From the standpoint of many individuals, all those who
advocate the extension of government control are socialists. Still
others label as socialists all reformers with whose ideas they are not
in accord. It very often happens that persons who pass in the
community for socialists are not recognized as such by the official
socialist parties. Indeed, certain official socialist groups go so far
as to declare that other official socialist groups are "not really
socialists," either in thought or in action.
122. A DEFINITION OF SOCIALISM.--In spite of this confusion it is
possible to formulate a rather precise definition of socialism.
Leaving until later the distinction between the chief socialist
groups, we may say that the following definition covers all who are
strictly socialists: Socialism is an economic theory which aims to
abolish the capitalistic system, and to substitute for it "a system of
collective ownership and democratic management of the socially
necessary means of production and distribution." In rather more simple
language, socialism intends that all income-producing property shall
be owned and directed by the state. The state is to own and operate
land, factories, workshops, railroads, and all other means of
production. Private property and the competitive system are to be
abolished. [Footnote: Socialism does not seek to abolish the private
ownership of food, clothing, and other forms of consumers' goods, yet
both socialists and non-socialists accept the unqualified statement
that "socialism seeks to abolish private property." because it is the
private ownership of producers' goods rather than of consumers' goods,
which constitutes a cornerstone of the capitalistic system.] All
business is to be conducted by the government, and all persons are to
be employees of the government. The distribution of wealth is to be
directed by the government.
123. RELATION OF SOCIALISM TO OTHER RADICAL THEORIES.--The terms
"communism" and "socialism" call for careful distinction. What is now
known as socialism was formerly known as communism. For example, Karl
Marx, the founder of modern socialism, called himself a communist. His
followers later abandoned the name, and began calling themselves
socialists. Still later, during the World War, a group of Russian
socialists, popularly known as the bolshevists, revived the term
communist in the sense used by Marx. Strictly speaking, however,
communism is generally thought of to-day as a type of small community
organization in which all wealth, including both the instruments of
production and consumers' goods, is owned by the community. Socialism,
on the other hand, proposes that the state own and operate only the
instruments of production, leaving food, clothing, and other
consumers' goods to be owned and enjoyed by individuals.
Socialism is often thought of in connection with the doctrine of
anarchy. Anarchism and socialism are alike in that both object to one
man having authority over another. Anarchism agrees with socialism
that capitalism is bad because it gives the employer power over the
laborer. But at this point the two theories begin sharply to diverge.
Socialism desires to abolish private property and to concentrate all
authority in the hands of the state. The anarchist maintains that this
is simply a transference of authority, and declares that authority in
any form is an evil. Thus where socialism seeks to enlarge the powers
of the state, anarchism objects to the existence of any governmental
authority whatsoever.
In addition to communism and anarchism, there are a number of
interesting theories that are more or less closely associated with the
socialist movement. These will not be discussed here, for two reasons:
first, an adequate treatment of them would permit the problem of
industrial reform to take up a disproportionate share of our time;
second, many of these theories, while interesting, are relatively
unimportant, from the standpoint of American democracy at least. We
may, therefore, confine ourselves to socialism proper, as defined in
Section 122.
124. KARL MARX AND HIS INFLUENCE.--The germ of socialism can be traced
back as far as Plato, but the modern movement takes its main impetus
from the teachings of Karl Marx. Karl Marx was a German Jew, who lived
between 1818 and 1883. Marx early became known for his radical views
on political and economic subjects. In 1848, he published, in
collaboration with Frederick Engels, the well-known Communist
Manifesto. The Manifesto, which has been called the "birth-cry of
modern socialism," gives in concise form the essence of the socialist
doctrine. In 1864 Marx helped organize the "International," a
federation of radical thinkers, with affiliations in the different
countries of Europe. In 1867 he published the first volume of his
famous work, _Capital_, which elaborated the views set forth in the
Manifesto, and which has since been adopted as the "Bible of
Socialism." Due to the great influence which Marx has exerted upon
socialist doctrine, he may justly be called the founder and
inspiration of modern socialism.
125. THE SOCIALIST INDICTMENT.--The claims of socialism, as formulated
by Marx and elaborated by his followers, constitute a serious
indictment of present-day society. Socialists point out, for example,
that the capitalistic system has numerous faults. They call attention
to the fact that capitalism involves enormous wastes in materials and
men; they show that luxurious and injurious goods are produced; and
they maintain that in the past natural resources have often been
monopolized by a few. They believe the system of private property to
be unjust, and declare that free competition involves needless
duplication of effort. At the present time, it is contended, all the
good things of life go to a few, while the masses remain in poverty
and misery. Socialists declare that the fruits of capitalism are
unemployment, industrial accidents, crime, vice, poverty, disease, and
premature death. These charges are serious, and Chapter XVI will be
devoted to their critical examination. In this chapter we are
concerned chiefly with an exposition of the socialist doctrine.
126. ECONOMIC INTERPRETATION OF HISTORY.--Formerly a great principle
of socialism was the claim that all history has been determined by
economic forces. According to this view, our whole social and
political life, including our basic ideas concerning religion, art,
science, and government, are only the reflected result of economic
forces. History, Marx contended, is the record of how one class has
gained wealth and power at the expense of another class. The present
state of society, he asserted, is the result of the exploitation of
the masses by a few.
With this principle we need not further concern ourselves. It is an
academic appendage to the socialist doctrine, and at the present time
is not stressed by socialists. The majority of socialists now concede
that while economic forces have been important in history, social,
religious, and political forces are also important. In view of this
admission, the chief importance of the doctrine of the economic
interpretation of history is its theoretical connection with the two
great cornerstones of socialism: the theory of surplus value, and the
theory of class struggle.
127. THEORY OF SURPLUS VALUE.--Marx claimed that practically all
wealth has been created by the laborers alone, and that all persons
other than laborers are parasites. To those who have carefully studied
Chapter VIII the error of this claim must appear self-evident,
nevertheless, this concept of value is the basis of all socialist
attacks upon government and industry. Marx developed this theory as
follows:
The value of an article is determined solely by the amount of labor
expended upon its production. But although the laborer creates all
wealth, the capitalist is enabled, by virtue of his monopolistic
control over the instruments of production, to prevent this wealth
from 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 true
capitalists. ] Socialism declares that the capitalist holds the
laborer in virtual slavery, the laborer receiving only enough of the
wealth created by him to enable him to keep alive, while the surplus
of this wealth goes to the capitalist. The capitalist is thus a
parasite who performs no useful task, but robs the laborers of the
fruits of their industry. Marx did not regard profits as reward for
business enterprise, but called them "plunder." Capitalism, according
to this view, is a system of theft, involving "misery, oppression,
slavery, degradation, and exploitation."
128. CLASS STRUGGLE.--Marx declared that the capitalistic system was
doomed to destruction. He maintained that as time went on, wealth
would tend to concentrate more and more in the hands of the capitalist
or employing class. Trusts and monopolies would become more common,
and gradually capitalism would become so unwieldy and so unworkable a
mechanism that it would finally fall to pieces of its own weight.
Crises, panics, and trade depressions were supposed to be indications
of this inevitable disaster.
The tendency for wealth to concentrate in the hands of a few was to be
accompanied by the growing poverty of the masses. Marx believed that
the middle classes would eventually disappear, leaving only the
wealthy employers and the miserable laborers. The individuals
comprising these two classes would steadily draw apart into two great
armies which were destined to battle to the death. Socialism denies
that employers and laborers have anything in common, and insists that
between these two groups a struggle must go on until the employing
class is abolished.
129. WHAT IS THE ULTIMATE AIM OF SOCIALISM?--Nothing could here be
more important than to know the ultimate aim of socialism,
nevertheless, there is among socialists no agreement as to the
framework of the system which they expect to substitute for
capitalism. All socialists desire collective ownership and direction
of the instruments of production, but beyond this there is practically
nothing in the way of a constructive socialist program. Generally, it
is declared that when capitalism has been abolished, the working
classes will organize industry on the basis of communal ownership. In
the socialist commonwealth there is to be no class struggle, for the
reason that there are to be no classes. There is to be a just
distribution of wealth, together with an abolition of poverty,
unemployment, and all forms of social injustice. But as to how this is
to be accomplished we have no proof. The so-called constructive
program of socialism is not so much a definite agreement as to aims
and methods, as it is a confused and disordered expression of the
attitude of different socialist groups toward capitalism. Indeed, when
socialists are asked to advance a concrete and definitely constructive
program, the reply is often made that the advent of socialism is so
far distant that the constructive side of its program is of no
immediate consequence.
130. NEGATIVE CHARACTER OF SOCIALISM.--But although the constructive
program of socialism is vague and unreal, its destructive or negative
program is definite and very real. Socialism is opposed to government
as it exists to-day, and to that extent, it disapproves of the
Constitution of the United States. The capitalistic system is to be
destroyed. The institution of private property is to be abolished.
Free competition and private initiative are to be abolished or greatly
restricted. All business is to be under the thumb of the government.
Personal liberty is to be narrowed down. Some socialists even go so
far as to declare war upon the family and the church, but though a
number of socialist leaders favor the abolition of the institution of
marriage, and are professed atheists, it should be borne in mind that
the great majority of socialists are not openly hostile to the home
and the church. Indeed, the average socialist is probably as friendly
to these institutions as is the average non-socialist.
131. SOCIALIST ATTITUTE TOWARD VIOLENCE.--It is important to
understand the methods of socialism. Throughout the greater part of
his life, Karl Marx openly advocated violence and revolution as a
means of securing the downfall of capitalism. Socialists, says the
Communist Manifesto, "disdain to conceal their views and aims. They
openly declare that their ends can be attained only by the forcible
overthrow of all existing social conditions." Toward the end of his
life, Marx changed this view somewhat, and apparently came to believe
that the overthrow of the capitalistic system might come gradually and
without bloodshed. In accordance with this later view, there is to-day
a considerable socialist group which disavows violence. Members of
this group are known as political socialists.
On the other hand, many socialists cling to Marx's earlier insistence
upon violence and bloodshed as a means of attaining socialist ends.
Members of the latter class are known as militant socialists, as
opposed to those who disavow violence and rely chiefly upon political
weapons. The two best-known groups of militant socialists are the
Industrial Workers of the World and the Russian bolshevists.
132. POLITICAL SOCIALISM.--Many political socialists are personally so
mild and agreeable that the thought of unlawful action would never be
associated with them. The political socialist relies chiefly upon the
growing political power of the working class to effect the abolition
of capitalism. This emphasis upon political weapons has been
particularly noticeable among socialists living in democratic
countries where the franchise is widely extended, and where the will
of the people is reflected through the action of their chosen
representatives. The political socialist makes a large use of
propaganda. He tries to stir up the workingman, to create in him a
feeling of solidarity with his fellow workmen, and to incite a feeling
of antipathy toward, and dislike for, the employing class. The
political socialist emphasizes or exaggerates the undesirable side of
the laborer's life, and endeavors by promises of an industrial
millennium to rouse him to political action. "Workingmen of the world,
unite, you have nothing to lose but your chains," is the slogan of the
political socialist.
133. ALL SOCIALIST TEACHINGS TEND TOWARD VIOLENCE.--Though large
numbers of political socialists are peaceful and responsible citizens,
it should be noted that all socialist teachings tend to result in
violence. The insistence of socialism upon the class struggle, the
deliberate encouragement of industrial ill-will and the general policy
of obstructing the activities of government, all lead inevitably to
violence. Strikes involving bloodshed have in many instances been
traced 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 to
demoralize our military forces, and impeded the conduct of the war by
giving aid and succor to German agents. By a series of slight steps,
political socialism, theoretically law-abiding and harmless, may drift
into treasonable and revolutionary acts. The difference between
political 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 in
violence?
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 may
be due to improvement in their social and economic condition.
(Skelton, page 17.)
2. What, according to socialists, has been the effect upon the workers
of the introduction of machinery into industry? (Le Rossignol, page
9.)
3. What, according to Marx, has been the effect of the factory system
upon 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 capitalism
upon 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"? (_International
Encyclopedia,_ vol. 21, page 235.)
11. What changes would occur in human character, in the opinion of the
socialists, 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 to
define socialism. Compare the definitions secured with that given in
section 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 it
appear that all of the community's citizens may be grouped into either
a 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 employers
are identical or in opposition?
(b) Carefully observe the actual conduct of the business. Does it
appear to you that the laborers alone create the product? Give your
reasons.
(c) Do the laborers under observation appear to be getting barely
enough wages to enable them to keep alive? Check up your conclusion by
visiting the homes of some of the laborers in question.
4. Write to the Department of Justice, Washington, D. C., for
information regarding the activities of American socialists during the
World 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_, chapter
xlvi.)
9. The life of Karl Marx. (Consult an encyclopedia.)
10. The law of capitalistic development. (Skelton, _Socialism, a
Critical Analysis_, chapter vii.)
11. The economic interpretation of history. (Skelton, _Socialism, a
Critical 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 convenient
abbreviation which is used to designate a group of militant socialists
calling themselves the Industrial Workers of the World. The I.W.W.
resemble a French socialist group known as syndicalists, and on that
account the I.W.W. are sometimes called the American syndicalists. As
a matter of fact, the I.W.W. are a distinct group, and are in no way
affiliated with the French syndicalists.
The I.W.W. movement can be traced to a miners' strike in Colorado in
1903. 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 which
should advocate methods more drastic than those of political
socialism. In the summer of 1905 a second convention was held in
Chicago, and a constitution was drawn up and subscribed to. Section 1
of Article I of this constitution reads: "This Organization shall be
known as the 'Industrial Workers of the World.'"
135. THE I.W.W. AND THE POLITICAL SOCIALISTS: SIMILARITIES.--Like the
political socialists, the I. W. W. go back to Karl Marx for their
basic teachings. William D. Haywood, one of the I. W. W. leaders,
accepted Marx's theory of surplus value in these terms: "The theory of
surplus value is the beginning of all socialist knowledge. It shows
the capitalist in his true light, that of an idler and a parasite. It
proves to the workers that capitalists should no longer be permitted
to take any of their product." The I. W. W. also stress the class
struggle. The preamble to their constitution declares that "the
working class and the employing class have nothing in common," and
asserts that "between these two classes a struggle must go on until
all the workers of the world organize as a class, take possession of
the earth, and the machinery of production, and abolish the wage
system." In these important particulars there is agreement between the
I. W. W. and the political socialists.
136. THE I.W.W. AND THE POLITICAL SOCIALISTS: DIFFERENCES.--The chief
difference between the two groups is one of method. The political
socialists prefer political action to violence; the I.W.W. prefer
violence to political action. The I.W.W. believe that political
methods are altogether too slow and unreliable, and accordingly they
have so far refused to affiliate with any political party. The extreme
limits to which the I.W.W. have gone in the matter of violence have
caused many political socialists to disavow this militant group. The
attempt has even been made to prove that the I.W.W. are not socialists
at all, though as a matter of fact they are as truly so as is any
other socialist group.
137. I.W.W. METHODS: THE STRIKE.--The I.W.W. use the strike, not as a
means of securing better working conditions, but as a method of
fomenting revolution. "Instead of the conservative motto, 'A fair
day's wages for a fair day's work,'" declares the preamble to their
constitution, "we must inscribe on our banner the revolutionary
watchword, 'Abolition of the wage system.'" In their use of the
strike, the I.W.W. accordingly oppose conciliation or arbitration of
any kind, and whether or not they gain their point, they go back to
work 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; strike
again... whatever concessions from capitalism the workers secure,
sooner or later they will strike again."
The principal strikes initiated in pursuance of this policy occurred
at McKees Rocks, Pennsylvania, in 1909; Lawrence, Massachusetts, in
1912; Butte, Montana, in 1914; and Bisbee, Arizona, in 1916. Violence
and 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 of
workmen which results in the destruction of the employer's property.
Sabotage is a species of guerrilla warfare, designed to foment the
class struggle. Louis Levine, an I. W. W. sympathizer, has said that
"stirring up strife and accentuating the struggle as much as is in his
power is the duty" of the I. W. W. Some of the commoner forms of
sabotage are injuring delicate machinery, exposing the employer's
trade secrets to rival employers, lying to customers about the quality
of the goods, crippling locomotives so that they cannot be operated,
slashing the harness of teamsters, shipping perishable goods to the
wrong destination, burning forests and wheat fields, sawing lumber
into unusual lengths, and allowing foodstuffs to spoil or deteriorate.
139. I.W.W. METHODS: DESTRUCTION OF LIFE.--In their effort to destroy
the existing order of society, some of the I.W.W. are frankly willing
to go as far as assassination. I.W.W. leaders have advised their
followers, both orally and through their writings, to extend the term
sabotage to cover the destruction of human life. During the World War
the 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 ground
glass in food served in hotels and restaurants. Since the organization
was formed in 1905, several bomb outrages resulting in loss of life
have been charged against the I.W.W., but in justice to this group, it
must be observed that these crimes have never been proved to have been
committed by authorized I. W. W. agents.
140. NEGATIVE CHARACTER OF THE I.W.W.--The I.W.W. resemble the
political socialists in their failure to offer a definite system which
could be substituted for the capitalistic system. Some of the I. W.
W., it is true, have formulated a plan by means of which society is
some day to be organized primarily on an industrial basis. According
to this program, the workers of a given industry, say the railroad
industry, will be organized into a single union, rather than, as at
present, into a number of trade unions, such as an engineers' union,
as distinct from the firemen's union, the brakemen's union, etc. The
railroad union would in turn become a branch of a great transportation
union, and the transportation union would in turn become a division of
the "One Big Union," which is to include all workers in all countries
of the world.
If this plan were approved by the entire I. W. W. organization, it
would mean that the I. W. W. intended industry to be controlled by a
super-organization of workingmen, all other persons to be excluded
from any control whatsoever. As a matter of fact, this is the program
of only a faction of the I. W. W. The idea of "One Big Union" is
opposed by a second group, which insists that after the destruction of
capitalism, industry must be handed over to the exclusive control of
small units of laborers, unaffiliated with, and uncontrolled by, any
larger organization. Beyond the formulation of these two opposing
views, a constructive I. W. W. program has never been developed.
Attention continues to be centered upon the destruction of the present
system.
141. UNDEMOCRATIC CHARACTER OF THE I. W. W.--The I. W. W. oppose our
present democracy. They oppose our Constitution and its fundamental
guarantees of personal liberty, individual rights, and private
property. They seek revolution, not in order to secure justice for the
masses, but in order to place the laboring class in complete power in
industry and government. They announce their intention of continuing
the class struggle "until the working class is able to take possession
and control of the machinery, premises, and materials of production
right from the capitalists' hands, and to use that control to
distribute the product of industry _entirely_ among the workers."
142. LIMITED APPEAL OF THE I. W. W. PROGRAM.--It is a testimonial to
the common sense of American workmen that the I. W. W. have made
little headway. Until the Lawrence strike in 1912, the movement
centered in the Far West, and it is even now practically confined to
those parts of the West where industry is less well organized, and
where family life is less stable. Miners, lumbermen, and railway
construction 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 unassimilated
immigrants. The better trained and the more intelligent American
workmen reject the program of the I. W. W. These latter workmen
believe in bettering their condition through the gradual development
and enforcement of industrial standards, made possible by lawful
coöperation with the employer. The truth of this statement is borne
out by the fact that whereas the I. W. W. number scarcely 30,000, the
American Federation of Labor has more than 4,000,000 members.
Numerically the I. W. W. are unimportant, and it is chiefly their
violent 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 make
its 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 "Industrial
Workers of the World."
5. Preamble to the Constitution of the Industrial Workers of the
World.
QUESTIONS ON THE REQUIRED READINGS
1. Name some of the unions represented in the I.W.W. convention of
1905. (_International Encyclopedia,_ page 150.)
2. What do the I.W.W. insist must be the outcome of the class
struggle? (Preamble to the constitution.)
3. What sort of an organization do the I. W. W. believe to be
essential if the condition of the workers is to be improved? (Preamble
to the constitution.)
4. What are the three reasons why the I.W.W. expect to take over
industry? (Bloomfield, page 80.)
5. What may be said as to the present attitude of the I.W.W. toward
political parties? (International Encyclopedia,_ page 151.)
6. What are some of the differences between the I.W.W. and the French
syndicalists? (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 the
I.W.W. (Hoxie, pages 157-161.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Interview, or write to, the officials of a trade union in your
community with reference to the attitude of the trade union toward the
I.W.W. (Many trade unions are bitterly opposed to the I.W.W.; others
are more tolerant of this form of militant socialism.)
2. Investigate the conditions surrounding any strike which has been
initiated in your neighborhood by the I.W.W. (Consult the officials of
a local trade union. Consult, also, the files of local newspapers and
the _Readers' Guide to Periodical Literature._)
3. A number of states have recently passed laws restricting the
destructive tactics of the I.W.W. Ascertain whether or not your state
has passed such laws. (Write to the state library at the state
capitol.)
Also write to the proper authorities in several other states, asking
for 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,_ chapter
xxvii.)
5. The theory of "direct action." (Bloomfield, _Modern Industrial
Movements_, 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: The
I. W. W._, chapter x.)
9. Syndicalism. (_International Encyclopedia_, vol. 21, article on
"Syndicalism.")
10. Relation of the I. W. W. theory to anarchism. (Brooks, _American
Syndicalism: The I. W. W._, chapter xiv.)
CHAPTER XV
MILITANT SOCIALISM: THE BOLSHEVISTS
143. SIGNIFICANCE OF BOLSHEVISM.-The term "bolshevist" is used to
designate a group of militant socialists that seized power in Russia
in the fall of 1917. Strictly speaking, the bolshevists were purely a
Russian group, nevertheless, they are of interest to students of
American democracy. Until the outbreak of the World War socialism was
primarily a theory, the claims of which could not definitely be
settled for the reason that it had never been applied on a large
scale. Bolshevism is significant because it is the only instance in
the history of the world where nation-wide socialism has actually been
put into operation. The peculiar conditions surrounding the Russian
experiment may prevent any detailed conclusions as to the availability
of bolshevist experience for other countries; on the other hand, the
general results of that experiment must throw some light upon what we
might expect if a socialist experiment were made in other countries.
It is important, therefore, that we inquire into the nature of the
Russian socialist state.
144. ORIGIN OF THE BOLSHEVISTS.--There is a popular impression that
since the word bolshevist means "majority" in the Russian language,
the bolshevists represented or constituted a majority of the Russian
people. This is not true, as the history of the group shows. The
origin of the bolshevists dates from a convention of the Russian
Social-Democratic party in 1903, at which time a majority
(_bolshinstvó_) took an extreme stand upon the policies then being
discussed in convention. In the years that followed the bolshevists
became 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 secure
control of the Russian government. The opportunity presented itself
during the World War, which Russia had entered early in August, 1914.
In March, 1917, a non-bolshevist group initiated a revolution, which
overthrew the government of the Czar and established a provisional
government under the leadership of Alexander Kerensky. This government
immediately instituted a number of democratic reforms, including the
extension of the suffrage to all men and women who were Russian
citizens. These citizens elected delegates to a constituent assembly,
but at this point the bolshevists, seeing that the voters of Russia
were overwhelmingly against bolshevism, attacked the new government.
The constituent assembly was forcibly dissolved, its defenders
slaughtered, and on November 7, 1917, the bolshevists seized the reins
of government. Thus bolshevism as a government came into being as the
result of suppressing the lawfully expressed will of the Russian
people.
145. THE BOLSHEVIST CONSTITUTION: LIBERAL ELEMENTS.--On July 10, 1918,
the bolshevists adopted a constitution. This remarkable document was a
strange compound of liberal and despotic elements. It made a number of
important promises to the people of Russia, announcing, for example,
that the new government would "put an end to every ill that oppresses
humanity." In pursuit of this ideal, the church was separated from the
state, and complete freedom of conscience was accorded all citizens of
Russia. Citizens were to enjoy complete freedom of speech and of the
press. For the purpose of "securing freedom of expression to the
toiling masses," provision was made for the free circulation
throughout the country of newspapers, books, and pamphlets. Full and
general education to the poorest peasantry was also promised. Capital
punishment was declared abolished, and a solemn protest against war
and violence of every kind was adopted.
146. THE BOLSHEVIST CONSTITUTION: RESTRICTED SUFFRAGE.--These liberal
provisions were offset, however, by a number of important restrictions
upon the voting rights of the people. Article IV of the bolshevist
constitution declared that the right to vote should not be extended to
the following groups: all persons employing hired laborers for profit,
including farmers who have even a single part-time helper; all persons
receiving incomes from interest, rent, or profits; all persons engaged
in private trade, even to the smallest shop-keeper; all ministers of
religion of any kind; all persons engaged in work which was not
specifically defined by the proper authorities as "productive and
useful to society"; members of the old royal family; and individuals
formerly employed in the imperial police service. The constitution
further provided that representation in the various deliberative
assemblies (called soviets, or councils) should be arranged so that
one urban bolshevist would be equal, in voting strength, to five non-
bolshevist peasants. Lastly, the constitution significantly neglected
to provide any machinery whereby the voters, either as individuals or
in groups, could make nominations for any governmental office. The
power of nomination was assumed by various bolshevist officials.
147. THE BOLSHEVIST CONSTITUTION: PROVISION FOR A DESPOTISM.--The
bolshevist constitution frankly provided for a despotism. "For the
purpose of securing the working class in the possession of complete
power," reads the concluding section of chapter two of the
constitution, "and in order to eliminate all possibility of restoring
the power of the exploiters, (the capitalist or employing class), it
is decreed that all workers be armed, and that a socialist Red Army be
organized and the propertied class disarmed." These steps, the
constitution goes on to state, were to be taken for the express
purpose of introducing nation-wide socialism into Russia.
148. "DICTATORSHIP OF THE PROLETARIAT."--Shortly after the publication
of the constitution, Lenin and Trotzky, the two bolshevist leaders,
established what was called the "dictatorship of the proletariat." The
word proletariat refers vaguely to the working classes, but the
bolshevists interpreted the term to cover only that portion of the
workers which was pledged to the support of socialist doctrine. Lenin
admitted that a small number of bolshevized workingmen, the
proletariat, was maintaining, by force of arms, a despotic control
over the masses of the people. "Just as 150,000 lordly landowners
under Czarism dominated the 130,000,000 of Russian peasants," he once
declared, "so 200,000 members of the bolshevist party are imposing
their will on the masses." According to these figures, the controlling
element in Russia included less than one sixth of one per cent of the
people.
From the first, the great majority of the peasants stolidly resisted
the socialization of the country, but this did not discourage the
bolshevist leaders. "We have never spoken of liberty," said Lenin
early in 1921. "We are exercising the dictatorship of the proletariat
in the name of the minority because the peasant class in Russia is not
yet with us. We shall continue to exercise it until they submit. I
estimate the dictatorship will last about forty years."
149. SUPPRESSION OF DEMOCRACY.--The democratic tendencies evidenced
under the Kerensky regime, and apparently encouraged by some of the
provisions of the bolshevist constitution, were quickly checked by the
dictatorship. It became the policy of the government to deprive "all
individuals and groups of rights which could be utilized by them to
the detriment of the socialist revolution." The semblance of a
representative system was retained, but voting power was so
distributed as to allow an oligarchic group to control the
government's policies. This group had the power to disallow elections
which went against it, as well as the power to force the dismissal
from local Soviets of anti-bolshevist members. The right to vote could
be arbitrarily withdrawn by order of the central authorities. Free
speech and the right to enjoy a free press were suppressed. Lenin
admitted that bolshevism "does not represent the toiling masses," and
declared that "the word democracy cannot be scientifically applied to
the bolshevist party." Both Lenin and Trotzky declared that they had
no 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 secured
control of the government. Private property in land was abolished, the
arable land of Russia being apportioned among agriculturists without
compensation to the former owners. All mines, forests, and waterways
of national importance were taken over by the central government,
while the smaller woods, rivers, and lakes became the property of the
local Soviets. Banking establishments were seized and looted by
bolshevist forces. Factories, railroads, and other means of production
and transport were taken over. Inheritance was abolished. Private
initiative in business was forbidden. Members of the capitalist or
employing classes were imprisoned, murdered, or driven from the
country. In a word, the capitalistic system was destroyed, and the
economic and political machinery of the country came under the full
control of a small socialist group, maintained in power by armed
force.
151. PARALYSIS OF INDUSTRY UNDER SOCIALISM.--The substitution of
socialism for capitalism in Russia was followed by disaster. The
workers were unable to carry on the industries which had been handed
over to them. Discouraged by repeated errors in administration, and
demoralized by their sudden rise to power, they neglected their work
and pillaged the factories and shops in which they had formerly been
employed. The elimination of the managing employers resulted in a
decrease in output, and to aggravate the situation the laborers
continued to insist upon a shorter and shorter working day. In
desperation the government attempted to keep the people at their tasks
by force. The workers were exploited to a degree previously unknown,
even in Russia. They worked longer hours and for less pay than
formerly. In many places they were attached to their tasks like
medieval serfs, and even harnessed to carts like beasts of burden. The
trade unions were abolished, and the workers were forbidden to strike,
on pain of imprisonment or death. Yet despite these measures the
output of factories, mills, and mines steadily decreased. Industry
stagnated, and business fell away. The millions of Russia were
starving in a land of plenty.
152. RETURN TO CAPITALISTIC METHODS.--To save the country from
economic ruin, Lenin turned to capitalism. Free initiative and open
competition in trade were again allowed. The socialization of
railroads, mills, and natural resources was halted. The arable land,
which under socialism had not grown enough food to support even the
peasants living upon it, was again cultivated under the wage system.
The capitalists and managing employers who were alive and still in
Russia, were gathered together and placed in charge of industry. The
laborers, who had been promised an eight- or six-hour day and complete
control of industry, were now forced by the bolshevist government to
work long hours under their former employers for practically no pay.
By 1919 the essential features of the capitalistic system had been
accepted by Lenin and Trotzky, the bolshevists continuing in power as
a despotic group which maintained authority over the laborers and the
employers by armed force. The theory that all except the laborers are
parasites had been exploded.
153. WAS SOCIALISM GIVEN A FAIR TRAIL IN RUSSIA?--To point out that an
experiment has failed is one thing; to prove that it has been
attempted under fair conditions is quite another. We cannot,
therefore, condemn the bolshevist experiment without some regard for
the conditions under which it was conducted.
Undoubtedly, the bolshevists had to contend against several important
difficulties. The majority of the Russian people are illiterate
peasants, who had had, at the time of the overthrow of the Czar in
1917, little or no training in self-government. In 1917, Russia was,
moreover, in a state of political demoralization, the result of three
years of war, concluded by a military debacle and a disorderly peace.
The suddenness with which socialism was introduced was also a factor
which handicapped the bolshevists.
On the other hand, many favorable conditions were present. With
respect to natural resources, Russia is one of the richest countries
in the world. She has practically everything necessary to a healthy
and self-sufficing industrial life. Over this wealth the bolehevists
had full control. Lenin, the bolshevist chief, is conceded to have
been a remarkable executive, so that the socialist experiment was
conducted by a man not only well versed in Marxian doctrine, but
capable of exercising an intelligent and authoritative control of the
government. The bolshevist territory was blockaded by Great Britain,
France, and the United States, but trade connections between Russia
and the two last-named countries had been unimportant. Trade
connections with Germany and Sweden on the west, and China on the
east, were not broken off.
It is clear that the socialist experiment in Russia was attended by
important advantages and disadvantages. Whether or not bolshevism had
an absolutely fair trial is as yet impossible to say. On the other
hand, the disastrous failure of the experiment would seem to indicate
that it could not have met with any great degree of success under
fairly favorable conditions. The admissions of the bolshevist leaders
themselves, together with the conclusions of the most impartial
investigators of the experiment, justify the conclusion that socialism
in Russia failed because it was based upon false principles. The
bolshevists 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 is
enough 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, in
common with other varieties of socialism, sought to break down
national barriers and to establish a dictatorship of the proletariat
in all of the countries of the world. Some of the milder socialists in
western Europe and America disavowed the acts of the Russian group,
but the majority of socialists beyond Russia appear to have at least
secretly sympathized with the bolshevists. Encouraged by this
attitude, Lenin and Trotzky frankly admitted their intention of
fomenting world-wide revolution. The bolshevist government
appropriated large sums for propaganda in countries beyond Russia, and
socialist sympathizers everywhere advocated an attempt to overthrow
"world capitalism." In the period of unrest immediately following the
World War there was some response to bolshevist propaganda in a number
of countries, but sounder opinion prevailed, and in 1920 Lenin
admitted that the workingmen of Europe and America had definitely
rejected his program. The one case of nation-wide socialism had proved
too great a failure not to impress the laboring classes in the more
advanced 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, pages
243-258; copies may also be secured by writing to _The Nation_, New
York 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 the
overthrow of the Kerensky government? (Brasol, page 114.)
3. What was the attitude of the menshevists toward the bolshevists
after the latter had seized control in Russia? (Brasol, pages 120-
122.)
4. What opinion did the bolshevists express with regard to world
civilization? (Bolshevist constitution, chapter iii.)
5. In what body did the constitution vest supreme control over the
bolshevist government? (Bolshevist constitution, chapter v.)
6. What was the food situation in bolshevist Russia? (Brasol, page
129.)
7. Discuss the output of coal and iron under bolshevist rule. (Brasol
pages 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 by
governmental 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 bolshevist
practice? (Bloomfield, pages 299-300.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Make as thorough a study as the time allows of material appearing
in newspapers and magazines, between November, 1917, and the present
time, on the subject of bolshevism. (Consult newspaper files, and also
the _Readers' Index to Periodical Literature_.)
(a) Classify the material according as it consists of direct
quotations 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 of
persons who had themselves actually investigated the situation in
Russia, 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 a
sub-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 History
Magazine_, 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, _Modern
Industrial 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.--Under
socialism the work of government would be greatly increased. Thousands
of intricate administrative rules would have to be drawn up for the
control and direction of activities now attended to by individuals
animated by personal interest.
Now, it is seriously to be questioned whether the most highly
centralized government could effectively administer the innumerable
activities of our complex industrial life. Upon what basis would land
be distributed? How would individuals be apportioned among the various
employments? Upon what basis would the wages of millions of workmen be
determined? Could so mechanical an agency as government foresee future
business conditions expertly enough to direct the productive forces of
the nation effectively? If prices are no longer to be fixed by
competition, how, and by means of what agency, are they to be
determined?
These are only a few of the vital questions which would arise in
connection with the administration of a socialist state. Various
suggestions have been made with regard to some of these difficulties,
but there is among socialists no general agreement as to the answer of
any one of these questions. They continue to constitute, in the eyes
of practical men, a grave obstacle to socialism.
156. DANGERS OF A SOCIALIST BUREAUCRACY.--Governmental power would
have to be very highly centralized if a socialist state were
effectively to administer the nation's economic activities as a unit.
But this very concentration of power might easily result in the
development of a bureaucracy. Waste and the possibility of corruption
have unfortunately characterized even those governments over which the
people exercise considerable control; it seems probable that the
greater centralization of authority demanded by socialism would
increase rather than decrease these dangers.
It is to be noted here that the socialists, who might be supposed to
consider as paramount the interests of society or of the public, are
the very people who are least inclined to do anything of the kind.
[Footnote: This concept was suggested to me by Professor Thomas Nixon
Carver of Harvard University.] Socialists look upon the state only as
an agency for benefiting particular groups of individuals. The
emphasis of political socialism upon class struggle, the frank
admissions of the I.W.W. that they seek to suppress all but the
laboring class, and the establishment by the bolshevists of a
dictatorship of the proletariat, all these facts indicate that
socialists seek the welfare of particular groups rather than the
welfare of the general public.
But class legislation is repugnant to the principles of American
democracy. We believe in government by the masses and for the masses;
furthermore, we are committed to the ideal of as much individual
freedom and as little governmental compulsion as is compatible with
the good of both individual and community. The concept of a socialist
bureaucracy, administered in the interests of particular groups, runs
counter to our fundamental beliefs and ideals.
157. SOCIALISM WOULD DESTROY PERSONAL INITIATIVE.--One of the
strongest arguments against socialism is that it would destroy
personal initiative. Socialism runs counter to human nature by under-
valuing the principle of self-interest. Economists are generally
agreed that the abolition of the institution of private property would
cause the ambition of the individual to slacken. In spite of its
defects, it is the competitive system, with its promise of reward to
the energetic and the capable, which is largely responsible for the
miraculous prosperity of modern times. Men ordinarily will not undergo
systematic training, perfect inventions, strive to introduce greater
and greater economies into their business, or undertake the risk of
initiating new enterprises, unless they are assured that they will be
able to enjoy the fruits of their labor.
And not only would socialism discourage ambition by abolishing private
enterprise, but it might encourage inefficiency and shiftlessness.
Every man would be guaranteed a job, every individual would be
protected against want. It is even likely that a socialist state would
undertake to rear and provide for the offspring of its citizens. Human
experience indicates that this degree of paternalism would encourage
laziness and increase irresponsibility.
It is sometimes said that under socialism men would work as eagerly
for social esteem as they now work for financial gain. This would be a
highly desirable condition, but unfortunately there is nothing in
human experience to justify the hope that such a state of affairs will
speedily be realized. The spread of altruism in the modern world is
heartening, but no sensible person will shut his eyes to the fact
that, for the immediate future at least, self-interest promises to be
much more widespread than altruism. The love of gain may not be the
highest motive in life, but it is better than none, and for a long
time to come it will probably be the one which appeals most strongly
to the average man. Socialists and non-socialists alike deplore the
domination which self-interest exercises over human affairs. But
whereas the non-socialist wisely tries to adapt a program of
industrial reform to this hard fact, many socialists appear to believe
that 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 and
non-socialists admit that poverty is an undesirable condition. But
over the method of improving the condition of the poor the socialist
and the non-socialist disagree. The defender of capitalism begins by
pointing out that, under competitive conditions, the unskilled laborer
is poor primarily because his labor is not highly productive. The
socialist ignores this fact, and insists that the laborer shall
receive a share of wealth which shall be adequate to his needs. As we
shall have occasion to point out in the next chapter, this attitude of
the socialist indicates a fundamental defect in his theory. Socialism
pays more attention to who shall eat and how much shall be eaten, than
it does to the more fundamental question of how food is to be
produced, and how much can actually be produced. Laws may oblige an
employer to give his workmen twice as much as they add to the value of
his product, but though this will benefit the workmen while it lasts,
such a practice would, if widely adopted, lead to industrial
bankruptcy. [Footnote: It is assumed, in this section, that the
productivity of the laborer is determined from the point of view of
the employer. This is in accordance with the productivity theory which
was discussed in Chapter IX.]
159. SOCIALIST THEORY OF VALUE UNSOUND.--Many of the defects of the
socialist doctrine are traceable to the fact that it rests upon false
assumptions. One of these false assumptions is that commodities have
value in proportion as labor has been expended upon them. This labor
theory of value has been discarded by every authoritative economist of
modern times. As has been pointed out in Chapter VIII, value depends
upon scarcity and utility. The soundness of the scarcity-utility
theory, as well as the unsoundness of the labor theory, may be brought
out with reference to three classes of goods.
First, there are commodities which have value in spite of the fact
that no labor has been expended upon them. Virgin land, the gift of
Nature, is the most important example. Articles of this class have
value because they satisfy men's wants, _i.e._ have utility, and
because they are scarce. Labor has nothing to do with their original
value.
Second, there are commodities which have no value, even though much
labor has been expended upon them. A building erected in a desert or
in a wilderness is an example. Unwanted books, or paintings by unknown
artists are other examples. Commodities in this class may represent a
great expenditure of labor, and still have no value, first because
they do not satisfy anyone's wants, and second because they are not
scarce, _i.e._ there are not fewer of them than are wanted.
Third, articles may have a value which is out of proportion to the
amount of labor expended upon them. The value of diamonds, old coins,
and rare paintings is disproportionate to the actual amount of labor
involved in their production. A sudden change in fashion may cause the
value of clothing and other commodities to rise or fall, with little
or no regard for the amount of labor expended upon them. In each case
it is not labor that determines value, but scarcity and utility.
160. LABOR NOT THE ONLY FACTOR IN PRODUCTION.--Labor is an important
factor in production, but land, capital, coördination, and government
are also of vital importance to any modern industrial community. The
great error of the socialist is that he over-estimates the importance
of the laborer, and minimizes or altogether denies the importance of
the individuals with whom the laborer coöperates in production. This
error is explainable: the laborer does most of the visible and
physical work of production, while the part played by the landowner,
the capitalist, and the entrepreneur is less physical and often is
apparently less direct. The complexity of the industrial mechanism
very often prevents the laborer from appreciating the true relation
existing between his own physical labor, and the apparently indirect
and often non-physical efforts of those who coöperate with him. It is
in this connection that producers' coöperation and bolshevism have
performed a great service. They have demonstrated, by the out-and-out
elimination of the managing employer, that the laborer alone cannot
carry on modern industry. Such actual demonstrations of the value of
factors of production other than labor are of far more service in
correcting the viewpoint of the socialist than is any amount of
theoretical argument.
161. THEORY OF CLASS STRUGGLE UNWARRANTED.--The theory of class
struggle is based upon the claim that the laborer produces all wealth.
But we have seen this claim to be unfounded; therefore the theory of
class struggle is built upon an error. Ultimately, the theory of class
struggle tends to injure the very class which seeks to gain by
advocating it, for true and permanent prosperity for the laboring
class (as well as for all other classes) can result only when all of
the factors of production work together harmoniously. Fundamentally
the quarrel between capital and labor [Footnote: The phrase "capital
and labor" is loose and inaccurate, but is in common use. Used in this
sense the word "capital" refers to the capitalist and employing
classes, while the word "labor" refers to the workers. See Section
181, Chapter XVIII, for a fuller discussion.] is as suicidal as though
the arms of a human body refused to coöperate with the other members.
There are, indeed, many antagonisms between capital and labor, but
socialism seeks to foment, rather than to eliminate them. Socialism
preaches social solidarity and prosperity for all, but by inciting the
class struggle it makes for class hatred and a disharmony between
capital and labor which decreases prosperity and threatens economic
ruin.
162. HISTORY HAS DISPROVED SOCIALISM.--Karl Marx bases his theory of a
future socialist state upon a number of predictions, none of which has
come true. According to Marx, socialism was inevitable. He declared
that the centralization of wealth in the hands of the capitalists, on
the one hand, and the increasing misery of the workers on the other,
would accentuate the class struggle and bring about the downfall of
capitalism. As a matter of fact, laws are more and more restricting
the undue concentration of wealth in the hands of a few. The middle
classes, far from disappearing, as Marx predicted, are increasing in
numbers and in wealth. The working classes are not becoming poorer and
more miserable, but are securing a larger and larger share of the
joint income of industry.
The socialist revolution came in 1917, not in the most enlightened
country in the world, as Marx had predicted, but in Russia, one of the
most backward of civilized countries. This revolution did not
demonstrate the superiority of socialism over capitalism, but revealed
the fundamental weaknesses of socialism, and led to a more widespread
recognition of the merits of the capitalistic system.
In the progressive countries of western Europe and America, the
likelihood of a socialist revolution has been greatly diminished by
two developments. These developments, both of which were unforeseen by
Marx, are as follows: first, the improving condition of the workers
has rendered socialist doctrine less appealing; second, the increasing
effectiveness of legislation designed to remedy the defects of
capitalism has caused attention to be directed to legislative reform
rather than to socialism. With many who were formerly socialists, the
supreme question has become, not how to destroy the present order, but
how to aid in perfecting it by means of appropriate legislation.
163. SOCIALISM CLAIMS TOO MUCH.--Socialism often appeals strongly to
people who are unable to distinguish between plans which are
realizable and promises which cannot be fulfilled. For example,
socialism promises greatly to increase the productive power of the
nation, to shorten the hours of labor, and to insure a just
distribution of wealth. These reforms, it is claimed, would be
accompanied by the elimination of unemployment, poverty, vice, and
attendant evils. It is maintained that socialism would encourage a
higher moral tone and a healthier and more vigorous social life than
now exist.
Without doubt these are desirable aims, but we must face the hard fact
that socialism is not likely to attain them.. Some of the ills which
socialism claims to be able to cure are neither attributable to
capitalism, nor open to remedy by socialism. For example, crises and
unemployment are often due to the alternations of good and bad
harvests, to the varying degrees of severity in successive winters, to
new mechanical inventions, and to changes in fashion. These forces are
beyond the effective control of any state. This being so, it is unfair
for socialists to attribute their evil effects to capitalism. It is
likewise unwarranted that socialism should claim to be able
effectively to control these forces.
Other industrial evils are due to the infirmities of human nature, and
to the fact that we are a highly civilized people living more and more
under urban conditions. Crime, vice, and disease are grave social
problems which demand solution, but it is unfair for socialism to
charge these evils against capitalism. Such defects are due partly to
the fact that we are human, and partly to the fact that much of modern
life is highly artificial. Unless socialism contemplates a return to
small, primitive communities, there is nothing to indicate that it
would be able materially to reduce crime, vice, nervous strain, or
ill-health. Indeed, there is no evidence to show that socialism could
make as effective headway against these evils as we are making under
capitalism.
164. DEFECTS OF SOCIALISM OUTWEIGH ITS MERITS.--It is only after the
advantages of a system or an institution have been carefully weighed
against its disadvantages that its value appears. A socialist system
would have some obvious merits. It might eliminate unemployment, since
everyone would be an employee of the state, and, as such, would be
guaranteed against discharge. Charitable aid would probably be
extended to many people now left to their own resources.
But certainly socialism could not cure ills which are due either to
natural causes, or to the infirmities of human nature. The abolition
of private initiative and of private property would strike at the root
of progress. Socialism would also probably give rise to a series of
new problems, such as the evils arising out of a bureaucratic form of
government. As its program now stands, it is probably fair to say that
the defects of socialism greatly outweigh its merits.
165. SOCIALISM UNDER-RATES CAPITALISM.--The ardor of the socialist
often causes him to underestimate the merits of capitalism, and to
exaggerate its defects. The striking achievements of capitalism, so in
contrast with the negative character of socialism, are not generally
appreciated by the socialist. On the other hand, the socialist places
an undue emphasis upon the defects of the present system. The radical
agitator too often overlooks the millions of happy, prosperous homes
in this and other countries; he too often sees capitalism in terms of
poverty, crises, unemployment, vice, disease, and extravagance.
Our age is not to be despaired of. An age of progress is always an age
of adaptation and of adjustment, and it is precisely because American
democracy is both a progressive ideal and a living, growing
institution that it is confronted with problems. The socialist
indictment is not a prelude to chaos, for through the process of
adjustment we are making steady progress in solving our problems.
Capitalism has served us well, and though it has defects, these are
clearly outweighed by its merits. So long as we know of no other
system which would work better, we are justified in retaining
capitalism.
166. NECESSITY OF A DEFINITE PROGRAM OF INDUSTRIAL REFORM.--Socialism
appeals to certain types of people because it offers a confident
program, even though it is a mistaken and probably a dangerous
program. And it is the almost universal failure of non-socialists to
advance a substitute program that is responsible for a large share of
the resentment which industrial evils have aroused among non-
socialists. _If not socialism, what?_ is the cry. We are challenged to
move, to do something, to present a reform program which will justify
the rejection of socialism.
Lest our survey of industrial reform seem negative and devoid of
constructive elements, therefore, the next chapter will be devoted to
what may be called a democratic program of industrial reform. The
basic idea of this program is that poverty is as unnecessary as
malaria or yellow fever, and that we can abolish poverty without
sacrificing private property, personal initiative, or any of the other
institutions which we hold dear.
QUESTIONS ON THE TEXT
1. What are some of the administrative difficulties which would
confront 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 his
attitude 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, with
reference to three classes of goods.
7. How may we explain the socialist's tendency to overestimate the
importance of labor, and to underestimate the value of other factors
of production?
8. Explain clearly the statement that "history has disproved
socialism."
9. In what way does socialism claim too much?
10. Name some industrial evils which socialism probably could not
cure.
11. What is meant by the statement that "socialism under-rates
capitalism"?
12. Why is it necessary for non-socialists to advance a program of
industrial 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 modern
industrial life? (Brasol, page 93.)
3. What is the importance of the spirit of enterprise in increasing
national wealth? (Brasol, page 99.)
4. What effect has the development of entrepreneur ability had upon
the 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 would
encounter 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 the
condition of the laboring classes? (Le Rossignol, pages 107-108.)
10. Explain why Marx's prediction of an increasing concentration of
wealth in the hands of a few has not come true. (Le Rossignol, pages
128-130.)
11. To what extent is socialism too pessimistic about the present
order? (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 them
into three classes for the purpose of testing the error of the labor
theory of value, and the truth of the scarcity-utility theory.
(Consult Section 159.)
2. Make a study of unemployment in your locality, with particular
reference 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 of
securing a definite idea of the condition of the working classes a
half century ago. Contrast with the condition of the laborers to-day.
4. Make a list of the notable inventions of the nineteenth century. To
what extent has each increased the productivity and well-being of the
various occupational groups in your community?
II
5. History of socialism. (Consult an encyclopedia.)
6. Varieties of socialism. (Ely, _Outlines of Economics_, chapter
xxx.)
7. The Iron Law of wages. (Le Rossignol, _Orthodox Socialism_, chapter
iii.)
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 American
Ideals_.)
12. Social justice without socialism. (Clark, _Social Justice without
Socialism_.)
CHAPTER XVII
A DEMOCRATIC PROGRAM OF INDUSTRIAL REFORM
[Footnote: The title of this chapter, as well as the material in
Sections 170-175, has been adapted, by permission, from the writings
and lectures of Thomas Nixon Carver, Professor of Economics in Harvard
University.]
167. THERE IS NO SIMPLE REMEDY FOR THE DEFECTS OF CAPITALISM.--The
economic system of a modern civilized nation is a vast and complicated
affair, and its defects are both numerous and deep-lying. No one
really familiar with the problem would propose so simple a remedy as
socialism for so complex a disease as industrial maladjustment.
History affords many examples of schemes that were designed to
eliminate poverty from the world suddenly and completely, but no such
scheme has succeeded.
Let it be understood at the outset of this chapter, therefore, that
really to eliminate the basic defects of our industrial system we must
resort to a series of comprehensive reforms rather than to a single
scheme or theory. These reforms must be so wisely planned and so
carefully executed as to attack the evils of capitalism from a number
of 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 it
possible for every individual to earn enough to support himself and
his family at least decently; and third, to teach every individual to
use wisely and economically the income which he receives.
A program embodying these three aims has the disadvantage of seeming
commonplace and slow of fulfillment to those who prefer novel and
sensational schemes, but it has the advantage of being both workable
and safe.
168. THE NATURE OF JUSTICE.--Among the advocates of socialism the word
"justice" is much used, but apparently little understood. Justice in
industry implies that every individual shall receive precisely what he
earns, no more, no less. If a monopolist secures unearned profits,
there is injustice. If a laborer adds to the value of a product to the
extent of five dollars, there is injustice if he receives less than
five dollars in wages. Similarly, there is injustice if the laborer
earns only four dollars, but receives five dollars. Wherever there is
an unfair distribution of wealth, there is a double injustice: some
individual gets a share of wealth which he did not earn and to which,
therefore, he is not entitled; while the individual who did earn that
wealth is deprived of it.
169. THE IMPORTANCE OF THIS.--All right-thinking reformers will agree
with the socialist that much or all of the unearned wealth of the
moneyed classes ought to be taken for the benefit of the community.
But he who accepts the democratic program of industrial reform will
not sanction the socialist's proposal to eliminate poverty primarily
by decreeing higher wages.
In the first place, this proposal of the socialist is unjust. A man
who 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 three
dollars a day. But that would be charity, not justice. It would be, as
we have just seen, a double injustice.
In the second place, such a practice would lead inevitably to national
bankruptcy. Under the competitive system, wages tend to be determined
by productivity. To attempt to eradicate poverty primarily by the
raising of wages is futile, for employers cannot long pay out in wages
more than the laborer adds to the product. Some employers might do so
for a long time, and all employers might do so for a short time, but
if the practice were nation-wide and long-continued, it would result
in economic ruin. To put a premium upon propagation by guaranteeing
every man a job, and to pay him, not according to productivity, but
according to need, would be equivalent to building up a gigantic
charitable institution. Charity is a necessary and laudable function,
but the proper care of the dependent classes is possible only when the
majority of the people are not only self-supporting, but actually
produce a surplus out of which the unfortunate can be cared for. If
applicants for charity too largely outnumber those producing a
surplus, national bankruptcy results.
In the third place, an increase in wages might not benefit even those
receiving higher wages unless they were able and willing to spend
their income wisely and economically.
170. THE REDISTRIBUTION OF UNEARNED WEALTH.--The first step in our
program is to apply the principle of justice to the problem of
unearned wealth. The student should be careful at this point to
distinguish between wealth which has been earned, however great, and
wealth which has been acquired by unjust methods. American democracy
will tolerate no interference with wealth which has been earned; on
the other hand, it demands that unearned riches be redistributed in
the form of services performed by the government for the people as a
whole.
There are three chief methods of redistributing unearned wealth. The
first is by means of increased taxes on land. As was pointed out in
the chapter on single tax, that income from land which is due, not to
the efforts of the owner, but either to natural fertility or to the
growth of the community, may be considered as unearned. While the
single tax is too drastic a reform, it is unquestioned that we need
heavier taxes upon the unearned increment arising from land.
A second method of redistributing unearned wealth is through the
application of inheritance taxes. Reserving the whole problem of
taxation for later discussion, [Footnote: See Chapter XXXII.] it may
be said here that in many cases large sums are willed to individuals
who have done little or nothing to deserve them. In so far as this is
true, and in so far as such a tax does not discourage the activities
of fortune builders, the inheritance tax is a desirable means of
redistributing unearned wealth.
The last method of redistributing unearned wealth is by a tax on those
elements in profits which are due to the abuse of monopoly conditions.
[Footnote: Monopoly will be treated more fully in Chapters XXVII and
XXVIII.] Complete monopoly rarely exists, but in many businesses there
is an element of monopoly which allows the capitalist or entrepreneur
to 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 to
suppose that justice would necessarily eliminate either low wages or
poverty. As we have seen, justice would require the redistribution of
a large amount of unearned wealth. But much more important is the
question of large numbers of laborers whose wages are undesirably low.
If the rule of justice were applied to this latter class, that is, if
they were given just what they earned, many would continue to be poor.
Indeed, if justice were strictly administered, it is even possible
that among a few groups poverty would increase, since some individuals
are incapable of really earning the wages they now receive.
Something more than justice, therefore, is necessary. We must not only
see that a man gets as much as he produces, no more, no less, but we
must make it possible for every individual actually to produce or earn
enough to support himself decently or comfortably. This, in essence,
is the distinction between the socialist and the liberalist, _i.e._ he
who accepts the democratic program of industrial reform: the socialist
would practice injustice and invite economic ruin in a vain effort to
eliminate poverty; the liberalist seeks the abolition of poverty
without violating either justice or economic law.
172. WHY WAGES ARE LOW.--A little thought will show that directly or
indirectly poverty is sometimes the result of low wages. It follows,
thus, that the source of some poverty would be dried up if an increase
in wages could be secured in an economical manner. To come to the
heart of the problem, wages are low because productivity is low. That
is to say, employers operating under conditions of free competition
will pay laborers in proportion as the latter give promise of adding
to the value of the product. When men are scarce, relatively to the
supply of land and capital, the employer will be justified in offering
high wages, because under those circumstances the productivity of each
of his prospective employees will be high. He will actually offer high
wages, because if he does not, the laborers will tend to hire out to
his competitors. But if laborers are plentiful, relatively to the
supply of the other factors of production, the employer will be forced
to offer lower wages, because under the circumstances each of the
prospective employees shows promise of being able to add relatively
little to the value of the product. In such a case, the employer will
actually offer low wages because he need not fear that his competitors
will hire all of the laborers applying for jobs.
Thus when laborers are plentiful, relatively to the demand, the
automatic functioning of the law of supply and demand will result in
low wages. We need not waste time debating whether or not there ought
to be such a thing as the law of supply and demand; a far more
profitable exercise is to recognize that such a law exists, and to
consider how our program of industrial reform may be adapted to it.
173. AN ECONOMICAL REMEDY FOR LOW WAGES.--Low wages are generally the
result of low productivity, and low productivity is in turn the result
of an oversupply of laborers relatively to the demand. Granting the
truth of these premises, an economical remedy for low wages involves
two steps: first, the demand for labor [Footnote: By "labor" is here
meant those types of labor which are poorly paid, because
oversupplied. Unskilled day labor is an example.] must be increased;
and second, the supply of labor must be decreased. Any measure which
will increase the demand for labor, relatively to the demand for the
other factors of production, will increase the productivity of labor,
and will justify the payment of higher wages. Competition between
prospective employers will then actually force the payment of higher
wages. Similarly, any measure which will decrease the supply of labor
will strengthen the bargaining position of the laborer, and, other
things remaining equal, will automatically increase wages.
174. INCREASING THE DEMAND FOR LABOR.--If we bear in mind that modern
industry requires a combination of the various factors of production,
it will be seen that the utilization of laborers depends upon the
extent to which land, capital, and entrepreneur ability are present to
combine with those laborers. Where there is a large supply of these
factors, many laborers can be set to work. Thus one way of increasing
the demand for labor is to increase the supply of land, capital, and
entrepreneur ability.
The available supply of land can be increased by several methods.
Irrigation, reclamation, and dry farming increase the available supply
of farm land. The fertility of land may be retained and increased by
manuring, rotation of crops, and careful husbandry. Improved
agricultural machinery will also enable land to be used in larger
quantities and in more productive ways. And while we do not think of
man as actually creating land, the draining of swamps and the filling
in of low places increases the available amount of both farm and urban
land. By whatever means the amount of available land is increased, the
effect is to open more avenues to the employment of laborers.
The supply of capital may be increased chiefly by the practice of
thrift among all classes of the population. Capital arises most
rapidly when individuals produce as much as possible, and spend as
little as possible for consumers' goods. Any measure which will
discourage the well-to-do from wasteful or luxurious ways of living,
and at the same time encourage the poor to save systematically, even
though they save only a trifle, will add to the supply of available
capital. Every increase in the supply of capital will enable more and
more laborers to be set to work.
Entrepreneur ability may be increased by a variety of methods. The
training of men for business callings increases the supply of
entrepreneurs. Taxes on inheritances, excess profits, and the unearned
increment of land will tend to force into productive work many capable
men who now either idle away their lives, or retire from business
prematurely. It is also important that the well-to-do classes be
encouraged to rear larger families, since it is these classes which
can best afford to give their children the higher forms of training
and education. Lastly, it is desirable to teach that leisure is
disgraceful, and that whether one is rich or poor, the useful and
productive life is the moral and patriotic life. "He who does less
well than he can does ill."
175. DECREASING THE SUPPLY OF LABOR.--Hand in hand with measures
deigned to increase the demand for labor should go consistent efforts
to decrease the supply of unskilled and poorly paid labor. One of the
most effective means of accomplishing this is to restrict by law the
immigration to this country of masses of unskilled workers which glut
the American labor market and force down the wages of unskilled
workmen already here. The general problem of immigration will be
discussed elsewhere; here it is only necessary to note that as an
economic proposition unrestricted immigration is undesirable.
The supply of unskilled labor may be somewhat restricted by additional
laws. It is clear that we ought to pass and enforce laws which would
prevent the propagation of mental defectives. There ought also to be
laws which would discourage the marriage of individuals who show no
promise of being able to rear and support children who are physically
fit. It might not be expedient to pass legislation requiring a certain
minimum income of persons intending to marry, but from the purely
economic 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 marriage
until their earnings justify the acceptance of such a responsibility.
Just as the well-to-do should be encouraged to prefer family-building
to social ambition, so the poorer classes ought to be encouraged to
postpone marriage until, through education or training, the proper
support of a family is assured. This end must be secured through moral
and social education, rather than through legislation.
The encouragement of thrift among the poorer classes of the population
is an important factor in decreasing the supply of unskilled labor.
Thrift increases savings, and by making possible education or
apprenticeship in a trade, it enables the children of the unskilled
worker to pass from the ranks of the poorly paid to the ranks of the
relatively well paid. Thus not only does the practice of thrift by the
poor add to the amount of capital in existence, and thus indirectly
increase the demand for labor, but it helps the poor directly and
immediately.
Vocational education is of fundamental importance in decreasing the
supply of unskilled labor. It renders higher wages economically
justified by training individuals away from overcrowded and hence
poorly paid jobs, and toward those positions in which men are scarce,
and hence highly paid. If vocational education turns unskilled workmen
into entrepreneurs, such education has the doubly beneficial effect of
lessening the supply of unskilled labor, and of increasing the demand
for labor. The importance of trade schools, continuation schools, and
other agencies of vocational education can hardly be exaggerated.
Employment bureaus and labor exchanges are essential to the democratic
program of industrial reform. Just as vocational education must move
individuals from overcrowded to undercrowded occupations, so the
employment bureau should move laborers from places where they are
relatively little wanted, and hence poorly paid, to places where they
are relatively much wanted, and hence better paid. A coördinated
system of national, state, and municipal employment bureaus is a
valuable part of our program of industrial reform.
176. IMPORTANCE OF PERSONAL EFFICIENCY.--We have seen that the
bargaining position of the laborer may be strengthened by any and all
measures which would increase the demand for his labor, relatively to
the demand for the other factors of production. As a general
proposition, this strengthened position would tend automatically to
result in higher wages.
Along with these measures it should not be forgotten that the
industrial position of the individual worker tends to improve in
proportion as he increases his personal efficiency. It is of the
greatest importance that the individual should strive to secure as
thorough an education as possible, and that he safeguard himself
against accident and disease. He should realize, also, that employers
seek men who are not only competent, but whose personal habits are
attractive and trust-inspiring. Regardless of the scarcity or
oversupply of labor, personal efficiency will tend to enable the
worker to receive larger wages than would otherwise be possible.
177. SOMETHING MORE THAN HIGH WAGES IS NECESSARY.--We have taken some
time to point out how wages might be increased without violating
economic law. But high wages do not necessarily mean the abolition of
poverty, indeed, actual investigations have proved that often poverty
exists regardless of whether wages are high or low. A family of four,
for example, might be well fed, comfortably clothed, and otherwise
cared for in a normal manner, on, say, three dollars a day, provided
that sum were utilized wisely. A second family of equal size, however,
might spend six dollars a day so carelessly that the children would be
denied such vital necessities as medical attention and elementary
education, while neither parents nor children would be adequately
provided with food or clothing.
178. INCOME MUST BE UTILIZED WISELY.--Thus an indispensable factor in
the abolition of poverty is the economical utilization of income.
Aside from the fact that it increases the amount of capital in
existence, thrift is imperative if a family is to get the full benefit
of its income. In both the home and the school the child should be
taught the proper care and utilization of money. He should receive, in
addition, fundamental instruction in such matters as expense-
accounting and budget-making. Of similarly great value is the training
of 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 these
and similar measures, for they strike at the heart of one of the great
causes of poverty--the inability of the individual to make the proper
use of his income. Unless our citizens are trained to spend money
wisely, and to distinguish clearly between the relative values of
services and commodities, an increase in wages will never eliminate
malnutrition, illiteracy, and other elements of poverty.
179. SUMMARY.--For the sake of clearness, let us summarize the
essential features of the democratic program of industrial reform.
The first aim of this program is to give every individual precisely
what he earns, no more, no less. Applying the principle of justice
would result in heavy taxes on unearned wealth secured through
inheritance, or as rent from land, or as monopoly profits.
The second aim of our program arises from the fact that justice might
not improve the condition of the laboring class, since some laborers
manifestly could not earn enough to support themselves and their
families decently.
In addition to administering justice, therefore, we must put the
individual in a position to earn an amount adequate to his needs. This
involves two lines of action: first, the bargaining position of the
laborer must be strengthened by measures designed to increase the
demand for his labor, relatively to the demand for the other factors
of production; second, increasing the personal efficiency of the
worker will render him more attractive to the employer.
The third aim of the democratic program of industrial reform is to
teach the individual to use his income wisely and economically. Only
after this has been done can we be assured that the raising of wages
will materially improve the condition of the worker.
180. SOCIAL PROBLEMS.--There is an important word to be said here. The
democratic program of industrial reform is economically sound, and
ultimately it would eliminate poverty. But it is not an immediate cure
for all of the social and economic ills of American democracy. There
will long continue to be persons whom no amount of care can render
capable of earning enough to support themselves. There are many other
individuals who may ultimately become self-supporting, but who for
some 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 and
economic interests need to be safeguarded by legislation. The
democratic program of industrial reform could ultimately eliminate
many of the basic social problems now confronting us; meantime we are
under the necessity of grappling with such questions as labor
disputes, the risks of industry, crime, and dependency. Indeed, no
matter how vigorously and intelligently we attack the defects of
capitalism, it is probable that we shall always have to face grave
social problems. Part III of the text will accordingly be devoted to a
consideration 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 double
injustice?
5. Under what conditions would the raising of wages tend to result in
national bankruptcy?
6. What are the three chief methods of redistributing unearned wealth?
7. Why does the elimination of poverty demand something more than
justice?
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 for
labor?
11. By what three methods may the demand for labor be increased?
12. Name some of the methods whereby the supply of labor may be
decreased.
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 all
social and economic ills?
REQUIRED READINGS
1. Williamson, _Readings in American Democracy_, chapter xvii. Or all
of the following:
2. Carver, _Elementary Economics_, chapters xiv, xxix, xxxi, and
xivii.
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. (_Elementary
Economics_, pages 119-120.)
8. What classes of the population multiply the least rapidly? Why is
this undesirable? (_Elementary Economics_, page 120.)
9. What is the object of the "geographical redistribution of
population"? (_Elementary Economics_, page 120.)
10. Explain the working of the "law of variable proportions" in
industry. (_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_, page
273.)
13. What is the effect of immigration upon wages? (_Elementary
Economics_, pages 273-274.)
14. What are the two ways of getting men to do what is necessary for
the 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_, pages
389-390.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Make a study of the occupational groups in your locality for the
purpose of discovering which of these groups receive the lowest wages.
Can you connect the fact that they receive low wages with their
numerical strength?
2. Is the supply of unskilled labor in your community affected by
European immigration? If so, attempt to trace the relation of this
immigration 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 of
this type of workman?
4. Study the methods by means of which land in your locality is
utilized. In what ways, if in any, could various plots be made to
employ more laborers?
5. By what means could the supply of capital in your locality be
increased? In what ways might this increased supply of capital be
utilized? To what extent would the utilization of this increased
supply of capital justify the employment of additional laborers?
6. Do you believe that your community needs more entrepreneurs? What
reason have you for believing that a training school for the technical
professions would increase the productivity of your community?
7. Write to the Bureau of Education in your state for data relative to
the status of vocational education in your commonwealth.
8. Interview one or more officials of a bank in your community for the
purpose of learning of the ways in which banks encourage thrift.
9. Write to the Bureau of Labor Statistics in your state for
information relative to the status of public employment bureaus in
your commonwealth.
II
10. Causes of inequality. (Taussig, _Principles of Economics_, vol.
ii, chapter liv.)
11. The Malthusian doctrine. (Malthus' _Essay on Population_. If this
essay is not available, consult an encyclopedia under "Malthus.")
12. The principle of self-interest. (Carver, _Essays in Social
Justice_, 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 are
involved in production: land, labor, capital, coördination, and
government. As a matter of fact, we are accustomed to speak of the
immediate conduct of industry as involving only two factors: labor and
capital. Used in this sense, the term labor refers to the masses of
hired workmen, while the term capital is held to include not only the
individual who has money to invest, _i.e._ the capitalist proper, but
also the entrepreneur, or managing employer.
Labor and capital coöperate actively in production, while the other
factors remain somewhat in the background. As we have seen, both labor
and capital are essential to industry, and fundamentally their
interests are reciprocal. But in spite of this basic harmony, there
are many points of difference and antagonism between labor and
capital. This chapter discusses the more important of these
disagreements, and outlines some suggested methods of reducing or
eliminating them.
182. THE FACTORY SYSTEM AND THE LABORER.--Wherever it has penetrated,
the Industrial Revolution has concentrated large numbers of landless
laborers in industrial establishments controlled by relatively few
employers. Very early in the development of the factory system, the
laborer saw that he was at a relative disadvantage in bargaining with
employers. Not only does the average laborer lack funds to tide him
over a long period of unemployment, but the fact that his labor is
generally his sole reliance obliges him to secure work at all hazards.
The anxiety and discontent of laborers have been increased by the
realization that the factory system affords little opportunity for the
average workman to rise to the position of an employer. Most laborers
are unable to secure either the training or the capital necessary to
set themselves up as independent business men.
183. RISE OF LABOR ORGANIZATIONS.--The risks and limitations which the
factory system imposes upon the laboring classes have encouraged
workmen to organize for the purpose of promoting their mutual
interests. The individual gains, it has been found, when his interests
are supported by a group of workmen acting as a unit, and bringing
their united pressure to bear upon the employer. The labor
organization has been the result of this discovery. A labor
organization may be defined as a more or less permanent and continuous
association of wage earners, entered into for the purpose of improving
the conditions of their employment.
The first labor organizations in the United States were formed early
in the nineteenth century, but it was not until about 1850 that the
trade union assumed national importance. After 1850, however, and
particularly after the Civil War, the trade union grew rapidly. In
1881 a number of national trade unions combined to form the American
Federation of Labor. This body, while exercising no real authority
over the trade unions comprising it, is nevertheless an important
agency in coördinating trade union policies throughout the country. It
is important, also, as a means of formulating and expressing the aims
and ideals of the working classes. The Federation had a membership of
2,604,701 in 1914, and in 1920 included more than 4,500,000 members.
With the exception of the railroad brotherhoods, nearly all of the
important trade unions in the country are affiliated with the American
Federation of Labor.
184. RISE OF EMPLOYERS' ASSOCIATIONS.--The growing power of the trade
union after 1850 stimulated the growth of employers' associations. In
1886 the first national employers' association was organized under the
name of the Stove Founders' National Defence Association. Later there
was formed a number of other important associations, including the
National Association of Manufacturers, the National Council for
Industrial Defence, and the American Anti-Boycott Association.
The primary purpose of the employers' association is the protection of
the employers' interests against trade union aggression. Some of the
associations are frankly hostile to the trade union movement, while
others take the stand that the organization of laborers is undesirable
only if the power of the trade union is abused. The promotion of
friendly relations between labor and capital is increasingly an
important concern of the employers' association.
185. WHAT THE TRADE UNION WANTS.--One of the basic aims of the trade
union is either to raise wages or to prevent their reduction. Because
of the constant shiftings of supply and demand, the prices of
commodities are rarely stationary for very long. Over any extended
period of time prices are either rising or falling. During a period of
rising prices the workmen are at a relative disadvantage, [Footnote:
Rising prices affect all who purchase commodities, of course, but here
we are intent upon the position of the laborer only.] because they
have to pay for commodities higher prices than they had anticipated
when they contracted to work for a definite wage. In such a case, the
union attempts to secure higher wages for its members. When, on the
other hand, prices are falling, the workmen gain, because they do not
have to pay as high prices as they had anticipated. In this latter
case, the laborers attempt to maintain their advantage by opposing any
reduction in wages.
The desire of the trade unions to improve the general condition of the
working classes has steadily widened the program of organized labor.
Shorter hours and better conditions of work are important trade union
demands. Unions quite generally approve the principle of a minimum
wage, [Footnote: The principle of the minimum wage is discussed in the
next chapter, Sections 205-207.] at least for women and child workers.
Formerly, and to some extent even now, the unions have opposed the
introduction of labor-saving machinery on the grounds that it
displaces workmen and hence causes unemployment. Union members
generally prefer to be paid by the hour or by the day, rather than so
much per unit of product. The reason given for the preference is that
strain and undue fatigue often result from _piece-work,_ as the system
of pay on the basis of units of product is called. Trade unions
universally demand that employers recognize the principle of
collective bargaining, by which is meant the privilege of workmen
dealing with the employer collectively or through the union. Very
often, also, the unions demand the closed shop, that is to say, a shop
from which all non-union employees are excluded.
186. WHAT THE EMPLOYER WANTS.--Price movements likewise affect the
employer. But whereas the laborer is at a relative disadvantage when
prices are rising, the employer tends to gain, for the reason that he
secures 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 that
a 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 remain
stationary or very nearly so, he reaps an unusually large profit. And
whereas in a period of falling prices the laborer tends to gain, the
employer often loses heavily, for the reason that he must sell at a
relatively low price goods produced at a relatively high cost. If, in
the case given above, the price of the pair of shoes falls from $4.00
to $3.00, while the expenses of the manufacturer remain stationary, or
very nearly so, he may make little or no profit. Thus while prices are
rising the employer attempts to maintain his advantage by resisting an
increase in wages, while in a period of falling prices he seeks to cut
down his expenses by reducing wages. In either case the immediate
interests of workmen and employer are antagonistic.
Just as the growing complexity of the industrial situation has
enlarged the trade union program, so the aims of employers have
steadily increased in number and in importance. On the grounds that it
restricts the fullest utilization of his plant, the employer very
often objects to a shortening of the working day, even where there is
a corresponding decrease in the day-wage. Some employers are unwilling
to provide sanitary workshops for their employees, or otherwise to
improve the conditions of employment. The employer generally objects
to the minimum wage, as constituting an interference with his "right"
to offer workmen what wages he chooses. Collective bargaining is
accepted by many employers, but many others insist upon the right to
hire and discharge men as they see fit, without being forced to
consider the wishes of the union. Employers often oppose the closed
shop, and insist upon the open shop, an open shop being defined as one
in which workmen are employed without regard to whether or not they
are members of a union.
187. METHODS OF INDUSTRIAL WARFARE.--Both capital and labor back up
their demands by a powerful organization using a variety of weapons.
The trade union generally attempts to enforce its demands by threat
of, or use of, the _strike_. A strike is a concerted stoppage of work
initiated by the workmen as a group. Sometimes accompanying the strike
is the _boycott_, which may be defined as a concerted avoidance of
business relations with one or more employers, or with those who
sympathize with those employers. The strike is generally accompanied
by the practice of _picketing_, by which is meant the posting of union
agents whose duty it is to attempt to persuade non-union workmen not
to fill the places of the striking workmen. Pickets may also attempt
to persuade customers not to patronize the employer against whom a
strike has been launched. Sometimes picketing leads to _intimidation
and violence_ on the part of either strikers or representatives of the
employers.
In turn, the employer may employ a variety of weapons against workmen
with 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 of
information among employers for the purpose of forewarning one another
against the employment of certain designated workmen. The employer may
also attempt to end a strike by persuading non-union men to fill the
places vacated by the strikers. Such men as accept are known as
_strike-breakers_. On the plea that the strike may result in the
destruction of his property, the employer may resort to the
_injunction_. This is an order secured from a court, and restraining
certain laborers in the employer's interest.
188. THE COST OF INDUSTRIAL WARFARE.--The struggles of labor against
capital constitute a species of warfare which involves the general
public. Regardless of whether a particular dispute ends in favor of
the laborers or the employer, every strike, lockout, or other
interference with industrial coöperation lessens the amount of
consumable goods in existence. Thus aside from the fact that
industrial warfare encourages class antagonisms, it is an important
cause of the relative scarcity of goods, and the resulting tendency of
prices to rise. Often great injury results from a dispute which
originally was of small proportions. In 1902, for example, the
anthracite coal strike cost the country more than $100,000,000, though
the strike had been initiated because of a local dispute over
recognition of the union. In 1919, when we were suffering from a
general scarcity of goods, there occurred in this country more than
three thousand strikes, involving a loss of more than $2,000,000,000
in decreased production.
189. NECESSITY OF INDUSTRIAL PEACE.--Industrial warfare very often
results in the correction of abuses, but in many cases it seems to
bring little or no benefit to either labor or capital. In any case, it
is a costly method, and one which constitutes a menace to the peace of
the community. American democracy demands that in the settlement of
disputes between labor and capital, industrial warfare be replaced by
some method less costly, less violent, and more in harmony with the
principles of justice and civilized behavior. Responsibility for the
present extent of industrial warfare cannot definitely be placed upon
either capital or labor, but at least both sides should be obliged to
recognize that the public is a third party to every industrial
dispute. We should insist upon fair play for both capital and labor,
but we should likewise insist that the interests of the public be
safeguarded.
190. SOME METHODS OF INDUSTRIAL PEACE.--As has already been pointed
out, profit sharing is not of great importance in lessening industrial
unrest. Various systems of bonuses and pensions have temporarily
improved the position of some groups of workmen, but experience has
proven both bonuses and pensions to be limited in scope. Employers are
often unwilling to adopt such devices as these, while the laborers
frequently regard them as paternalistic measures which at best are a
poor substitute for the higher wages to which they consider themselves
entitled. Existing evils are often lessened by welfare work, which
includes such measures as the establishment of schools, libraries, and
playgrounds for the laborers. But in many cases welfare work is
initiated by the employer for the purpose of diverting the attention
of the workmen from their fundamental grievances, and for this reason
it is often opposed by the workmen. All of the measures enumerated in
this section are of more or less value, but as methods of combating
industrial warfare, they have proved to be palliative, rather than
remedial or preventive.
191. THE TRADE AGREEMENT.--In some industries there is a growing
tendency for employers not only to recognize the union, but also to
make a collective contract, or trade agreement, with the unionized
workmen. The trade agreement may lead to the formation of councils in
which representatives of both workmen and employer attempt to reach a
friendly agreement upon disputed matters. The trade agreement has been
particularly successful in many industries in England. In this country
it is best known in the soft coal mining industry in eastern United
States, and in the needle trades of New York City. On the whole, the
trade agreement has not been markedly successful in the United States.
Although it smoothes out minor differences, the unions still prefer to
back their more important demands by use of the strike.
192. VOLUNTARY ARBITRATION.--Since 1898 the several states have been
giving an increasing amount of attention to the creation of boards of
industrial conciliation, mediation, and arbitration. [Footnote: The
words conciliation, mediation, and arbitration are variously used, but
the following distinction may be of use. Mediation is an attempt to
get the disputants to come together for the purpose of discussing
their grievances. Conciliation is aid extended to the disputants in
the actual settlement of the dispute. Arbitration implies that a third
party settles the dispute and renders a decision.] Most states now
have some provision for a board whose duty it is to attempt to
eliminate industrial warfare. The powers and duties of these boards
vary from state to state. In some states the board may investigate
labor disputes on its own initiative, but it is not obliged to make an
investigation. In other states the investigation of industrial
disputes 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 disputants
agree to allow the state board to arbitrate the dispute, and when also
they previously promise to abide by the decision of the board, the
award of the state board is binding upon both sides. When the parties
to the dispute have not previously agreed to abide by the award, the
board cannot force an acceptance of its decision, but can only rely
upon public sentiment to help effect a just settlement.
193. COMPULSORY ARBITRATION IN NEW ZEALAND AND AUSTRALIA.--The
frequent refusal of labor and capital willingly to submit their
differences to arbitration has led to the development of the principle
of compulsory arbitration.
In New Zealand, compulsory arbitration was adopted as early as 1894.
In that country the arbitrating body is known as the court of
arbitration, the decisions of which are absolute and binding. At the
discretion of the court, the awards handed down may be extended to
embrace other employees or employers in the same trade, or in the same
locality, or in the whole country. Violations of the award, either by
labor or by capital, are punishable by heavy fines. An even more
drastic form of compulsory arbitration has been adopted in Australia.
Due to the influence of many complicating factors, the status of
compulsory arbitration in these two countries is uncertain. Many
students of the question maintain that this form of arbitration has
materially reduced industrial warfare; on the other hand, other
authorities declare that compulsory arbitration in New Zealand and
Australia has not markedly improved industrial relations.
194. COMPULSORY ARBITRATION IN THE UNITED STATES.--Although the
principle of compulsory arbitration has been familiar to American
students of labor problems for more than a quarter of a century, there
is as yet very little sentiment in favor of its application to
industrial disputes in this country. The explanation of this is not
far to seek. Individualism is so strong in the United States that
compulsory arbitration is regarded by many Americans as an unwarranted
interference in private business. It is still generally true that both
labor and capital prefer to settle their disputes in open struggle.
Equally important, perhaps, is the feeling that compulsory arbitration
laws would nullify the constitutional guarantee that no citizen shall
be deprived of life, liberty, or property without due process of law.
[Footnote: For an explanation of this point, see Chapter XIX, Section
214.]
However, a definite step toward compulsory arbitration was taken when
in 1920 the State of Kansas established a Court of Industrial
Relations "for the purpose of preserving the public peace, protecting
the public health, preventing industrial strife, disorder, and waste,
and securing regular and orderly conduct of the businesses directly
affecting the living conditions of the people." The law of 1920
declared illegal the suspension of work in those industries which are
designated as essential and necessary to the community life.
Industrial disputes arising in such industries are subject to
compulsory arbitration by the court. The merits of this court are
still being debated. Some authorities declare that the court has
already demonstrated its value, but other observers claim that so far
this tribunal has not operated to reduce labor troubles in Kansas.
195. STATUS OF THE DEMANDS OF LABOR.--For a number of years the
attitude of labor has been clearly aggressive, while the attitude of
capital has tended to be one of resistance. In view of this fact, the
simplest way of considering the merits of the industrial situation is
to examine the demands of labor. The justice of these demands cannot
be gone into here, but a few words of general application may be
helpful.
The proper determination of wages depends, of course, upon the
particular circumstances. No general rule can be laid down, except the
very obvious one that wages cannot permanently go so high as to wipe
out profits in an industry, nor yet so low as to render it impossible
for 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 the
working day does not too greatly hamper production. Many economists
feel that an eight-hour day will prove a social gain only if
introduced gradually. They believe that it should be introduced in
proportion as the industrial productivity of the country increases to
compensate for the shortening of the working day.
Opposition to the introduction of labor-saving machinery is both
useless and short-sighted. The officials of most unions now advise
workmen not to oppose the adoption of machinery, but rather to fit
themselves to operate the machines.
The question of a closed shop or an open shop is largely a matter of
opinion. The problem will probably continue to be disputed for a long
time to come. Many students of labor conditions feel that the closed
shop is justifiable only when accompanied by the open union. By an
open union is meant a union into which all laborers competent to do
the work are admitted freely. Where the open union principle is
adopted, Professor Taussig points out, the closed shop is no longer a
monopolistic device to shut out competition and raise wages for a
small group. It becomes, instead, a means of promoting mutual aid and
collective bargaining.
Many employers still refuse to recognize the principle of collective
bargaining, but from the social point of view collective bargaining is
desirable. In many cases it so strengthens the position of the
laborers that they are able to compete with the employer more nearly
on terms of equality. Under such conditions competition in the labor
market is in a healthy state. The difficulty is, of course, that some
unions may take advantage of their strengthened position to enforce
unduly severe conditions upon the employer.
196. THE OUTLOOK.--Although it is probable that industrial
disagreements will long endure, we have a right to expect that
continued progress will be made in settling these disputes peaceably.
By many it is believed that compulsory arbitration is the most
effective method of securing industrial peace, but for reasons already
given, the extension of this form of arbitration will probably be slow
in this country. English experience would indicate that we have not
yet exhausted the possibilities of the trade agreement, but though
this device is becoming better known in the United States, both the
American laborer and the American employer are still disposed to
settle their differences by means of the strike, the lockout, and
similar weapons.
The present century is an age of industrial stress and change, and it
is possible that the ultimate solution of the disputes between labor
and capital has not yet been advanced. From the data now at hand,
however, it is maintained by many that labor disputes must ultimately
be eradicated through the development of industrial democracy.
Industrial democracy implies the joint direction of industrial
policies by employer and employees, working together harmoniously and
in the spirit of equality. When industrial democracy is attained,
according to this view, mutual trust and the spirit of friendly
coöperation will enable labor and capital to adjust their differences
peaceably 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 two
chief 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 industrial
warfare?
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 Industrial
Relations?
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, page
299.)
2. Who were the Knights of Labor? (Bullock, page 316.)
3. What is the economic justification of the trade union? (Ely, pages
445-446.)
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 what
groups 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 the
following 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. Obtain
information 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, and
arbitration. Do you think further legislation on this subject is
advisable?
II
6. History of the trade union movement in the United States. (Consult
any available text on labor problems. See also Carlton, _Organized
Labor in American History_.)
7. The Knights of Labor. (Any standard text on labor problems, or an
encyclopedia.)
8. Trade union policies. (_Bullock, Selected Readings in Economics_,
pages 589-613.)
9. Program of the American Federation of Labor. (Any standard text on
labor 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, _Selected
Articles 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. See
also Hoxie, _Scientific Management and Labor_.)
14. Incorporation of the trade union. (Bloomfield, _Selected Articles
on Problems of Labor_, pages 262-267. Commons, _Trade Unionism and
Labor Problems_, chapter vi.)
15. Employers' associations. (Any standard text on labor problems.)
16. Principles of industrial relations, as formulated by the Chamber
of Commerce of the United States of America. (Write to the Chamber's
headquarters, 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 an
unwarranted 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 has
progressed beyond the initial stages, there has been an enormous
increase in wealth and prosperity. At the same time, serious evils
have accompanied the transition from a relatively simple agricultural
stage to a stage dominated by the factory system. The tendency toward
overcrowding in rapidly growing cities, the difficulties of
maintaining a normal family life where mother or children are employed
in factories, and the danger of overstrain, accident and disease in
industrial pursuits, all these factors render very important the
problem of health in industry.
Though health in industry is only one phase of the general problem of
health, it will be impossible here to exhaust even that one phase. We
shall accordingly confine ourselves to the discussion of three
questions: first, child labor; second, the employment of women in
industrial pursuits; and third, the insurance of our industrial
population against accident, sickness, old age and unemployment.
198. CHILD LABOR: EXTENT AND CAUSES.--There are in this country more
than two million children between the ages of ten and fifteen, engaged
in gainful occupations. In all sections of the country large numbers
of children are found in agriculture, this industry generally being
beyond the scope of child labor laws. The employment of children in
factories, mines, quarries, mills, and shops, on the other hand, is
now considerably restricted by law. This is true of all parts of the
country. However, child labor is still of wide extent in the United
States, due to the large number of children found in agriculture,
domestic service, street trades, stores, messenger service, and
tenement homework.
Of the immediate causes of child labor one of the most important is
the poverty of the parents. Where the parents are themselves day
laborers, it is often considered necessary or desirable to increase
the family earnings by putting the children to work.
From the standpoint of the employer child labor is rendered possible
and even desirable by the development of types of work easily
performed by small children. In many cases the tendency of parents to
put young children to work is encouraged by the lax administration of
school attendance laws. This tendency has also been encouraged by the
indifference of the public to the evil effects of child labor.
199. EFFECTS OF CHILD LABOR.--Students of the problem of child labor
unanimously condemn the practice of habitually employing young
children outside the home. Where poorly paid children compete with men
and 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 too
tender an age. Schooling is interrupted, so that child workers
generally develop into illiterate and inefficient adults. When
children are forced into gainful occupations at an early age, the
family life is disrupted, and proper home training is difficult, if
not impossible. Still another factor is the greater temptation to vice
and crime confronting the child outside the home.
200. CHILD LABOR LAWS.--Since 1870 the growing acuteness of the child
labor problem, together with an aroused public opinion, has served to
increase the number of laws restricting child labor. At the present
time, forty-five states forbid the employment in certain industries of
children under fourteen years of age.
A Federal child labor law was passed in 1916, but two years later the
measure was declared unconstitutional by the Supreme Court. [Footnote:
For an explanation of this point, see Section 214 of this chapter.] In
1919 a new Federal law was enacted. In order to avoid the charge of
unconstitutionality, this measure attacks child labor _indirectly_.
The law levies an excise tax of ten per cent on the entire net profits
received from the sale of all the products of any mine, quarry, mill,
cannery, workshop, factory, or manufacturing establishment, which
employs children contrary to certain age and hour specifications. The
effect of this ten per cent tax is so to reduce the profits of the
employers affected, as virtually to prohibit child labor. By this
means the act prohibits child labor in several important groups of
industrial establishments.
The difficulty with the law is that it touches only about fifteen per
cent of our two million child workers. It does not affect, for
example, the large number of children employed in agriculture,
domestic service, street trades, stores and restaurants, messenger
service, and tenement homework.
201. MINIMUM PROVISIONS OF A GOOD CHILD LABOR LAW.--The passage of
more comprehensive child labor laws is being advocated by a number of
social agencies, notably by the National Child Labor Committee. The
minimum provisions of a good child labor law have been set forth by
the committee somewhat as follows:
As a general proposition, no child should be regularly employed in a
gainful occupation who is under sixteen years of age. There should be
an even higher age limit for child workers in quarries, mines, and
other dangerous places. Children should not work more than eight hours
a day. Nor should they be allowed to engage in night work until they
have reached the age of, say, twenty years. All child applicants for
industrial positions should first be required to pass educational
tests and a physical examination. A good child labor law should
provide for a corps of factory inspectors, as well as for other means
of securing the efficient administration of the law. Lastly, it is
important that there be close coöperation between employers and the
school authorities in the matter of child labor.
202. INCREASED NUMBER OF WOMEN IN INDUSTRY.--There have always been
women in industry, but of recent years the proportion of women so
engaged has increased so rapidly as to create a serious social
problem. From needlework, domestic service, and teaching, women have
spread rapidly into trade, commerce, and the professions. A few years
ago transportation and police work were monopolized by men, but to-day
women are entering these fields rapidly. Though they outnumber men
only in domestic and personal service, women are numerous in
practically every important calling except plumbing and street
cleaning. Altogether more than 8,000,000 women are engaged in gainful
occupations in the United States.
203. WHY WOMEN RECEIVE LOWER WAGES THAN MEN.--Women generally receive
lower wages than men. One reason for this is the physical weakness of
women, which renders them less desirable in many types of work. Social
conventions, home attachments, and, often, the lack of the venturesome
spirit, combine to keep women from moving about in search of improved
working conditions to the same extent as men. The expectation of
marriage causes many young women to neglect to increase their
efficiency, and this at least prevents their wages from increasing as
rapidly as those of young men who undergo consistent training. The
trade union is still little developed among women workers, a factor
which often prevents higher wages from being secured. Low wages are
often traceable to the fact that there is an over supply of girls and
women in the labor market. Large numbers of girls and women are
partially supported at home, and are able and willing to work for
"pin-money" only. Many employers take advantage of this fact to offer
very low wages.
204. LEGISLATION REGULATING THE LABOR OF WOMEN.--Although it would
seem desirable to keep young children out of industry altogether,
there is a general agreement among students of the problem that the
labor of women ought to be further regulated rather than actually
prohibited. A number of states have already enacted laws designed to
safeguard women in industry. In some states the number of working
hours for women has been cut from eleven to nine, while in other
states the maximum number of hours during which women may work is
eight. Some states prohibit night work for women in industrial
establishments. The great majority of the states now provide for
proper rest periods, guarded machinery, the ventilation of workrooms,
and, where practicable, seats for women employees. To the extent that
women actually do the same amount and quality of work as men, there is
a growing feeling that men and women ought to receive equal pay.
205. THE MINIMUM WAGE.--A minimum wage law is one which specifies that
in certain occupations laborers may not be paid less than a stipulated
wage. The aim of the minimum wage is to protect the laborer against
employment which, under freely competitive conditions, does not pay
wages high enough to guarantee a decent living.
The first minimum wage law in the United States was passed by
Massachusetts in 1912. The movement grew rapidly, and by 1921 more
than a dozen additional states had adopted minimum wage laws. In some
states the law applies only to specified industries; in others it
covers all occupations. In some states the law covers only the
employment of women, but in most cases the principle of the minimum
wage applies to women and minors under eighteen, or even twenty-one
years of age. In some foreign countries the minimum wage is also
extended to the labor of men, but in the United States men are
everywhere exempted from the operation of such laws.
206. ARGUMENTS IN FAVOR OF THE MINIMUM WAGE.--The champions of the
principle of the minimum wage advance a number of arguments in its
favor. It is contended that no industry is socially desirable if it
cannot pay a living wage, for when wages fall below a certain minimum,
poverty, ill-health, and vice are natural results. When laborers are
themselves unable to improve their economic position, it is said, it
becomes the duty of the state to guarantee them a living wage. Another
argument in favor of the minimum wage is that it not only eliminates
considerable poverty, but it makes possible a healthier and more
contented labor force. It is claimed that strikes and social unrest
are partially eliminated by the minimum wage.
207. ARGUMENTS AGAINST THE MINIMUM WAGE.--In spite of the rapid spread
of minimum wage legislation in this country, the principle has met
with considerable opposition. It is claimed by some that where poverty
is due to bad personal habits, the mere payment of a higher wage will
not abolish poverty. It is also urged that because of price changes,
and because of differing concepts of a standard of living, it is
difficult to determine what is really a living wage. Some employers
maintain that the minimum wage is contrary to economic law, since it
forces the payment of a wage which the laborer often does not earn.
The compulsory nature of the minimum wage is also opposed on the
grounds that it constitutes an undue interference with individual
rights. [Footnote: Formerly an important argument against the minimum
wage was this: There are large numbers of people who cannot _earn_ the
minimum wage, and because employers will tend not to employ them, such
persons will have to be supported by charity. The force of this
argument is reduced, however, by the fact that most minimum wage laws
now make special provision for the part-time employment of such
persons.]
208. THE RISKS OF INDUSTRY.--In spite of the fact that most States now
have detailed laws providing for the guarding of machinery and the
supervision of dangerous occupations, a half million persons are
injured or killed annually in industrial employments in the United
States. A considerable amount of ill-health is traceable to working
with drugs and acids. Continued work in dusty mills and shops, as well
as long exposure to the excessively dry or excessively moist
atmosphere required by certain manufacturing processes, also give rise
to "occupational" diseases. Old age frequently brings poverty and
distress, in spite of a life of hard work. Lastly, the laborer runs
the risk of unemployment.
209. THE PRINCIPLE OF SOCIAL INSURANCE.--As a general rule, laborers
do not voluntarily insure themselves against illness, unemployment,
accident, or old age. This is partly because they lack the necessary
funds, and partly because they lack the foresight necessary for such
action. If, therefore, the risks of industry are adequately to be
insured against, the initiative must be taken by some one other than
the laborer. As a result of this situation, there has developed the
principle of social insurance. Social insurance, as distinguished from
insurance by trade unions or private agencies, is compulsory, and is
administered, or at least supervised, by the state or Federal
authorities.
From the standpoint of the community, social insurance may be
justified on four grounds. First, the risks of industry are largely
beyond the control of the individual workman, and hence he ought not
to be held wholly responsible for the penalties which industry may
inflict upon him. Second, the community gets the benefit of the
laborer's efforts, and thus ought to feel morally obligated to
safeguard his employment. Third, an injury to the laborer restricts
the productivity of the community by crippling or removing one of its
productive agents. Fourth, compulsory insurance is a social necessity,
for where nothing has been laid aside for a rainy day, the
interruption of earnings subjects the laborer and his family to
hardship and disaster. Wisely administered social insurance prevents a
great deal of poverty and distress which would otherwise constitute an
added burden upon charitable organizations.
210. INSURANCE AGAINST ACCIDENT.--Accident insurance has been a
feature of social insurance programs in Germany, France, and Great
Britain for almost a half century, but in this country it was not
until 1910 that compulsory insurance against industrial accidents
began to be effective. Since 1910, however, the movement has grown
rapidly, and at the present time the majority of the states provide
for compensation to workmen for accidents sustained in connection with
their work. Formerly our courts quite generally held that when a
workman could be shown to have suffered an accident because of
"personal negligence," the injured person was not entitled to
compensation. Under the accident insurance laws of most states it is
now held, however, that the personal negligence of the injured workman
does not forfeit his right to receive compensation.
In most states the cost of accident insurance is borne primarily by
the employer.
211. INSURANCE AGAINST SICKNESS. [Footnote: Sometimes known as health
insurance.]--Compulsory sickness insurance has been highly developed
in several European countries, but so far we have left insurance of
this type to private effort. The question is attracting considerable
attention in this country, however, and it is believed that this form
of social insurance will soon be provided for by state law. In 1914
the American Association for Labor Legislation outlined a model
sickness insurance law. Such a law would provide a sickness benefit
for a number of weeks, arrange for medical care, and, in case of
death, pay a funeral benefit. The cost of such insurance would be
divided equally between workmen and employer, while the state would
bear the cost of administering the law. This cost would be
considerable, because illness may be feigned, and hence there would
have to be more careful supervision than in the case of accident
insurance.
212. INSURANCE AGAINST OLD AGE.--Compulsory insurance against old age
is an important feature of social insurance systems in European
countries, but it is very little known in the United States. We are
familiar with the Federal pensioning of military veterans, and with
local pensions for firemen and policemen, as well as with state and
local pensions for teachers. Such insurance does not, however, touch
the question of aged employees in industrial pursuits. Trade unions
sometimes 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 the
civil service employees of the Federal government. The question of
compulsory old age insurance is also being agitated in a number of
states.
213. SHOULD SOCIAL INSURANCE EXTEND TO UNEMPLOYMENT?--It is contended
by many that to insure workmen against the loss of their jobs would
encourage shiftlessness, and that for this reason the principle of
social insurance ought not to apply to unemployment.
It is obvious that a considerable share of unemployment is traceable
to personal negligence, and it is probably true that insurance against
unemployment would discourage thrift and foresight on the part of many
workmen. On the other hand, it has been shown statistically that a
large share of unemployment is due to crop failures, market
fluctuations, and other conditions beyond the control of the workmen.
In so far as this is true, there would be a great deal of unemployment
whether it were insured against or not. Because, therefore, some
unemployment is inevitable, and because unemployment is in many cases
beyond the control of the individual, it becomes necessary, or at
least desirable, for the state to insure workmen against this
unavoidable risk.
Insurance against unemployment has never been tried out in this
country, but it is likely that we shall some day follow the example of
the leading European countries, and include this type of protection in
our general program of social insurance.
214. OBSTACLES TO LABOR LEGISLATION.--Labor legislation of the type
discussed in this chapter is making rapid headway in the United
States. Nevertheless, it should be noted that in this field we are
behind the more advanced countries of western Europe. The chief
explanation of this relative backwardness is that the extension of
labor legislation in this country has met with considerable
opposition. The reasons for this opposition may be summed up as
follows:
First, the spirit of individualism is so strong in this country as
effectively to check legislation which appears paternalistic. The weak
position of women and children in industry has somewhat lessened the
force of this argument in the case of laws designed to safeguard these
two groups, but labor legislation in behalf of men is still regarded
suspiciously in many quarters.
Second, it is difficult to secure uniform laws among the several
states. Labor legislation in this country has been primarily a state
concern, but the attitude of the various states toward social
insurance, the minimum wage, and other types of labor legislation, has
been so divergent that the resulting laws have often been conflicting.
In many cases states fear to enact laws which they believe will hamper
local employers and encourage the migration of capital to states which
are more lenient in this regard.
Third, an important obstacle to labor legislation in the United States
has been the difficulty of enacting laws which the courts will not
declare unconstitutional. The constitutional provision [Footnote: See
the fifth amendment to the Federal Constitution, Appendix.] that no
one shall be deprived of life, liberty, or property without due
process of law has often been interpreted by the courts in such a way
as to nullify laws designed to safeguard the interests of the working
classes. For example, a law restricting the employment of women might
be declared unconstitutional on the grounds that it interferes with
the "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 constitutionality
appears to have declined in importance. Our Supreme Courts often
reverse their own decisions, as well as negative the decisions of the
lower courts, and it is therefore difficult to ascertain what is truly
the trend of judicial decision. Nevertheless, many authorities believe
that we are on the verge of an era in which the courts will weigh
labor legislation primarily in the light of its social benefit, and
only secondarily with respect to how it squares with the
technicalities 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 been
applied in this country?
13. What are the three great obstacles to labor legislation in this
country? Which of these appears to you to be the most important? Which
appears to you to be the easiest to overcome?
REQUIRED READINGS
1. Williamson, _Readings in American Democracy_, chapter xix. Or all
of 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 and
Patterson, 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 and
Patterson, 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 and
Patterson, pages 178-179.)
6. What are the main causes of irregular earnings? (Taussig, page
323.)
7. What form of social insurance was first developed in this country?
(Ely, page 588.)
8. Outline the British Workmen's Compensation Act. (Taussig, page
325.)
9. What are the main features of the German system of old age
insurance? (Taussig, page 331.)
10. What difficulties are encountered in insuring workmen against
unemployment? (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, pages
593-594.)
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 the
employment of children in agriculture. Interview some one familiar
with farming conditions for data on this topic.
4. Relation of child labor to the administration of the school
attendance laws in your community.
5. Extent to which women are employed in industrial establishments in
your community or state.
6. Interview a friendly employer on the relative desirability of men
and 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 of
sickness insurance by the union.
10. The emergency treatment of injured workmen in a near-by mill or
factory. Compare this treatment with the treatment outlined in the
references which are appended to Topic 21.
II.
11. Causes of child labor. (Mangold, _Problems of Child Welfare,_ part
iv, 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 and
Society_; 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 Unskilled
Wage-earner._)
17. Work of the National Housing Association. (Write to the
association office in Washington, D. C., for descriptive literature.)
18. Summary of Irving Fisher's report on national vitality. (_Bulletin
of the Committee of One Hundred on National Health,_ etc., prepared
for 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 through
Legislation,_ 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 the
United States_, chapter xii.)
FOR CLASSROOM DISCUSSION
26. The minimum wage for men.
27. Should old age and sickness insurance be made a feature of the
social insurance program of your state?
28. Should pensions be paid out of public funds to mothers having
dependent children?
29. Should labor legislation be enacted primarily by the Federal or by
the state governments?
CHAPTER XX
IMMIGRATION AND ASSIMILATION
215. RACIAL ELEMENTS IN OUR POPULATION.--The Federal census of 1920
gave the population of continental United States as 105,710,620.
Approximately nine tenths of this population is white, while about one
tenth is negro. Those who are neither white nor negro, namely,
American Indians and Asiatics, together constitute less than one half
of one per cent of the population.
The great majority of our people are either European immigrants, or
the descendants of European immigrants who came to this country within
the last century and a half. With reference to European immigration we
distinguish three groups: the foreign-born, the native-born children
of the foreign-born, and natives. Natives include those whose
ancestors have been in this country two or more generations. On the
basis of this classification, about one seventh of our population is
foreign-born while over one third is either foreign-born or the
native-born children of foreign-born parents.
The ease with which immigrants have adapted themselves to American
life prevents any accurate classification of nationalities in our
population, but probably Great Britain and Ireland, Germany, Italy,
Russia, (including Poland), and Austria-Hungary have, in the order
named, contributed the largest numbers.
216. THE "OLD" IMMIGRATION.--European immigration to the United States
may be divided into two groups, the "old" and the "new." The "old"
immigration extended from the beginning of our national history to
about the year 1880, and was derived chiefly from Great Britain and
Ireland, Germany, and the Scandinavian countries. Between 1820 (the
first year for which we have accurate records) and 1880, about nine
tenths of our immigrants came from these countries.
The striking features of the "old" immigration should be noted. In
comparison with present-day immigration, it was relatively small in
volume. In view of the abundance here of free land, and our consequent
need for pioneers, the small volume of immigration prevented the rise
of any serious problem. Moreover, the "old" immigration was largely
made up of individuals who were similar to the original American
colonists in political ideals, social training, and economic
background. The "old" immigration therefore merged with the native
stock fairly easily and rapidly.
217. THE "OLD" GIVES WAY TO THE "NEW" IMMIGRATION.--In the period
centering about the year 1880 there was a distinct shift in the
immigration movement. Whereas before 1880 most of our immigrants had
been Anglo-Saxons and Teutons from northern Europe, after 1880 the
majority of our immigrants were members of the Mediterranean and
Slavic races from southern and southeastern Europe. Before 1880 about
nine tenths of the aliens coming to our shores were from northern
Europe and only one tenth were from southern and southeastern Europe.
In the period since 1880, less than one fourth of our immigrants have
come from northern Europe, while more than three fourths have been
derived from southern and southeastern Europe. The bulk of this new
immigration has come from Russia, Poland, Austria-Hungary, Greece,
Turkey, Italy, and the Balkan countries.
218. INCREASING VOLUME OF IMMIGRATION.--Since it is in connection with
the "new" immigration that the modern immigration problem arises, it
will be profitable to inquire more fully into the character of the
movement after about 1880.
Not only has the character of immigration changed since the eighties,
but the volume of immigration has steadily increased. Of approximately
35,000,000 immigrants who have come to our shores since 1800, more
than half have come within the last thirty-five years. The peak of
immigration was reached in the decade preceding the World War, when as
many as a million and a quarter of immigrants landed in this country
in 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 heavy
immigration again set in. [Footnote: Various classes of immigrants
are excluded from the United States by the immigration laws summarized
in section 223 of this chapter. In addition to these laws, which may
be said to constitute the basis of our permanent immigration policy,
President Harding signed, in May, 1921, a bill relative to the
temporary exclusion of aliens who would ordinarily be admissible. This
temporary exclusion act provided that between July 1, 1921, and June
30, 1922, the number of immigrants entering the United States from any
other country might not exceed three per cent of the former immigrants
from that country who were within the bounds of the United States at
the time of the last census.]
219. DISTRIBUTION OF THE "NEW" IMMIGRATION.--One of the most
significant facts in connection with the immigration problem is that
our immigrant population is unequally distributed. About two thirds of
the 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 southern
sections of the country combined. Three fourths of our foreign-born
live in the cities of the North Atlantic and North Central divisions.
Forty per cent of the present population of New York City is foreign
born, while in Boston and Chicago more than a third of the population
is foreign born. In the smaller manufacturing cities of the North
Atlantic division it often happens that from half to four fifths of
the population is foreign born.
220. ECONOMIC EFFECTS OF IMMIGRATION.--In the earlier part of our
national history free land was abundant and immigration relatively
small in volume; after the eighties free land disappeared and
immigration increased rapidly. It was toward the end of the nineteenth
century, therefore, that the economic aspect of the immigration
problem became acute. In the last decades of that century
manufacturing developed rapidly, and American cities became important
centers of population. Large numbers of immigrants were attracted by
the opportunities for employment in urban centers. An addition to this
factor, immigrants continued to concentrate in the cities, partly
because of the spirit of clannishness, partly because of the
disappearance of free land, and partly because the development of
agricultural machinery reduced the demand for agricultural laborers.
Still another influence was the fact that the unfamiliar American farm
was less attractive to the southern European immigrant than was the
opportunity of performing unskilled labor in the city. To-day four
fifths of our immigrants are unskilled laborers who are employed
chiefly in mining, construction work, transportation, and domestic
service.
From the economic standpoint, the chief objection to unrestricted
immigration is that it prevents the wages of American workmen from
rising as rapidly as would otherwise be the case. The newly arrived
immigrant usually has a lower standard of living than has the native
American; that is to say, the immigrant is content with less in the
way of food, clothing, house room and education than is the native.
When newly arrived immigrants come into competition with native
workmen, the immigrant generally offers to work for a lower wage than
the native. But though relatively low, this wage is so much higher
than the newly arrived immigrant has been used to, that he feels
justified in marrying early and rearing a large family. This adds to
the supply of unskilled labor.
In order to compete with the recent immigrant, the native must accept
relatively low wages. In order to get along on these relatively low
wages, the native must either lower his standard of living or postpone
marriage. Sometimes he has lowered his standard of living; sometimes
he has preferred to retain his relatively high standard of living, and
to get along on the decreased wage either by postponing marriage, or
by permanently abandoning his plans for a normal family life. It is
contended, therefore, that an oversupply of unskilled immigrant labor
in this country has had at least two injurious results. First, it has
kept the standard of living of American workmen from rising as rapidly
as would otherwise have been possible. Second, it has caused the birth
rate to decline among the native groups.
221. SOCIAL EFFECTS OF IMMIGRATION.--The tendency of immigrants to
concentrate in American cities gives rise to a number of serious
social problems. Urban congestion is unqualifiedly bad. It is
difficult or impossible for immigrants living in crowded quarters to
maintain proper health standards. Nor does overcrowding conduce to
healthy morals. The foreign born do not show an unusual tendency
toward crime, which is remarkable when we consider the immigrant's
ignorance of our laws, as well as the ease with which unscrupulous
persons exploit him. On the other hand, the children of the foreign
born often show a strong tendency toward crime and vice, a fact which
is attributed to the bad social conditions surrounding their homes.
The percentage of dependency among immigrants is rather high. This is
not surprising, however, for many immigrants must go through an
adjustment period in which lack of financial reserves is likely to
force them to call upon charitable agencies for temporary aid.
222. DIFFICULTY OF ASSIMILATING THE "NEW" IMMIGRATION.--Those who made
up the "old" immigration assimilated rapidly: they were relatively
like the native stock in manners and customs, the volume of
immigration was relatively small, and the newcomers spread out into
frontier communities where habitual contact with natives was
unavoidable.
Those who make up the "new" immigration have assimilated less rapidly:
they are relatively unlike the native stock in language, race, and
customs; the volume of immigration is very great; and rather than
being uniformly distributed, the "new" immigrants tend to concentrate
in cities where they are often little subject to contact with natives.
Members of foreign "colonies" not only tend to remain ignorant of
American life, but unfamiliarity with self-government encourages their
exploitation by political "bosses." It is admitted by the most careful
students that the lack of proper civic ideals among unassimilated
foreigners in American cities is a large element in the corruption of
our municipal governments.
223. RESTRICTIVE LEGISLATION.--Exclusive control of immigration is
vested in the Federal government. During the Civil War Congress
actually encouraged immigration, but since 1882 our policy has been
one of restriction. In the latter year the first general immigration
act was passed, though considerable legislation on the subject was
already on the statute books. Supplementary laws were enacted from
time to time, the most important piece of legislation since 1900 being
the Immigration Act of 1917. A brief summary of this and previous acts
will serve to show the nature and extent of Federal control over
immigration.
The chief aim of our immigration laws has been so to restrict
immigration as to protect us against undesirable persons. In the
interest of health, persons afflicted with contagious diseases, such
as 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, and
likewise bars from our shores all criminals, except those who have
committed political offenses not recognized by the United States. In
order to reduce unnecessary tax burdens, as well as to safeguard
community health, we also exclude insane persons, idiots, epileptics,
beggars, and other persons likely to become public charges. Contract
laborers are specifically excluded, the Act of 1917 using the term
"contract labor" to include anyone "induced, assisted, encouraged, or
solicited" to come to this country "by any kind of promise or
agreement, express or implied, true or false, to find employment."
Persons over sixteen years of age are excluded from the United States
if they cannot read English or some other language. [Footnote: Certain
near relatives of admissible aliens, purely political offenders, and
persons seeking refuge from religious persecution, are exempted from
this literacy test, however.]
The bars against Asiatics call for a special word.
224. ASIATIC IMMIGRATION.--By Asiatic immigration is here meant
Chinese and Japanese immigration, immigrants from other parts of Asia
being relatively unimportant.
The discovery of gold in California in 1849 caused a large number of
Chinese coolies to migrate to this country. This immigration grew
steadily until 1882, in which year the entrance of Chinese laborers
into the United States was forbidden. Our exclusion policy has been
repeatedly reaffirmed, as the result of which there are to-day fewer
than 70,000 Chinese in this country. The majority of these are found
on the Pacific Coast, engaged as small tradesmen, truck farmers, or
personal servants.
Japanese immigration to this country did not become noticeable until
about 1900. After that date, however, the volume of Japanese
immigration so alarmed the Pacific Coast states that a Japanese
exclusion policy was formulated as early as 1907. At present the only
classes of Japanese that are allowed to reside in this country
permanently are "former residents," "parents, wives or children of
residents," or "settled agriculturists," the latter being Japanese
already in possession of land here. There are at present fewer than
120,000 Japanese in this country. Most of them are found on the
Pacific Coast, engaged in occupations similar to those of the Chinese
in the same area. [Footnote: Chinese and Japanese students desiring to
study in this country are allowed to enter the United States by
special arrangement.]
Those most familiar with the situation are practically unanimous in
declaring for the continued exclusion of Chinese and Japanese
immigrants. In the case of both races, the standard of living is so
much lower than that of native Americans that open competition between
the newly arrived Asiatic and the native American would result in the
latter being driven from the labor market. The most important social
reason for the exclusion of these two races is that the differences of
race and religion existing between Asiatics and native Americans
render assimilation of the Chinese and Japanese extremely difficult,
if not impossible.
225. THE FUTURE OF IMMIGRATION.--A half century ago the belief was
current that an immigration policy was unnecessary, since the sources
of immigration would eventually dry up. The sources of the "old"
immigration have dried up somewhat, but new sources have been opened
up in southern and southeastern Europe. Immigration is a pressing
social problem, and it is likely that it will be even more pressing in
the future. The American frontier has disappeared and our boundaries
are fixed. Urbanization is proceeding at a rapid rate, industry is
becoming more complex, public opinion is more insistent that such
social problems as immigration shall be solved.
226. WHAT SHALL BE OUR ATTITUDE TOWARD IMMIGRATION?--There is no good
reason why immigration should be absolutely prohibited. On the other
hand, the most public-spirited students of the question believe that
the careful restriction of immigration is imperative. Clearly, it is
our duty to accept only such immigrants as show promise of becoming
capable and efficient American citizens. It is also clearly our duty
to accept even this type of immigrant only in such numbers as we can
conveniently assimilate. We must not be selfish with America, but we
should not be misled by the statement that anyone in Europe has a
"right" to make his home in this country. Those who come to this
country are personally benefited, no doubt, but unrestricted
immigration may lower the tone of American life and permanently injure
our social and political institutions. America is for the present
generation, but is also for posterity. The millions of unborn have as
much right to be considered as have the millions now clamoring at our
gates. For this reason, the "right" of an individual to migrate to
America must be interpreted in the light of what he will mean to the
future of this country.
227. HELPING THE IMMIGRANT IN HIS NEW HOME.--The readjustment,
assimilation, or "Americanization" of the immigrant is a problem of
vital importance. The term "Americanization" is variously interpreted,
and must be used with care. Americanization ought not to force the
immigrant to give up his native tongue, or his old-country customs. It
ought to be a mutually helpful process, whereby native Americans would
help the immigrant in adjusting himself to his new environment, while,
in turn, the immigrant would be permitted and encouraged to make his
own contribution to American life. Since the immigrant has little or
no opportunity to contribute to American life until he has become
adjusted to his new home, it follows that the most fundamental part of
an Americanization program is one of helping the immigrant solve his
problems.
In carrying out this part of the Americanization program it is
essential that the newly arrived alien be protected against
unscrupulous persons who seek to exploit him. Adequate laws ought to
be supplemented by the work of immigrant aid societies and other
private organizations whose duty it would be to protect immigrants
against dishonest boarding houses, swindlers, unreliable banks, and
other forms of imposition. Friendly help of this type will do much
toward encouraging and inspiring the alien in his new life.
Improvement in the immigrant's economic status is an important part of
an Americanization program. Not only does the undue concentration of
immigrants in cities spell ill-health and a great temptation to crime
and vice, but immigrant laborers sometimes secure lower wages in
cities than they would receive in the more sparsely settled parts of
the country. Of considerable interest, therefore, is the recent
development of plans for redistributing immigrants into the rural and
sparsely populated districts. [Footnote: The movement to transfer
immigrants to the rural districts is not unqualifiedly good; indeed,
it may do more harm than good. For the dangers of this movement, see
Chapter XXV.] Since 1907 the Division of Information in the Bureau of
Labor Statistics has done valuable work in finding employment for
immigrants 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, he
ought to learn to speak, read and write English. The school is
likewise an important means of instructing the newcomers and their
children in the essentials of American history and government. Where
the school is being used as a real community center, the institution
becomes truly a method of introducing the foreign-born to the everyday
activities of American life. The increasing emphasis upon the racial
traits of different immigrant groups, with a view to encouraging
unique contributions to the culture of the community, deserves special
notice.
Americanization measures of the type touched upon in this section help
to build the nation on a sound foundation of friendly and intelligent
coöperation.
QUESTIONS ON THE TEXT
1. What proportion of our population is foreign-born? What proportion
is 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 of
living 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 Asiatics
excluded?
11. Does it seem likely that the immigration problem will be more or
less 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 and
Patterson, pages 95-96.)
3. Compare the "old" and the "new" immigration in 1882. (Ellwood, page
217.)
4. Compare the "old" and the "new" immigration in 1907. (Ellwood, page
218.)
5. What are the three most important groups of immigrants at the
present 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 with
the 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" in
Americanization 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 the
character of its immigrant class has changed within the last twenty-
five years.
3. Classify the immigrant groups of your community on the basis of
occupation. Notice in particular the proportion of immigrants engaged
in agriculture and in the trained professions.
4. Make a visit to a near-by foreign colony, and report to the class
upon your observations.
5. Interview the officials of a trade union on the effect of
Unrestricted immigration upon wages.
6. Draw up a workable plan for the redistribution of immigrants in
your state.
7. Draw up a plan for an Americanization survey in your state. (Write
to 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 on
immigration.)
10. The journey to America. (Abbot, _The Immigrant and the Community_,
chapter i; Steiner, _On the trail of the Immigrant_; Antin, _They Who
Knock at Our Gates_. See also Miss Antin's _The Promised Land_.)
11. Assisted immigration. (R. Mayo Smith, _Emigration and
Immigration_, chapter ix.)
12. Geographical distribution of immigration. (Semple, _American
History and its Geographic Conditions_, chapter xv.)
13. Economic aspects of immigration. (Consult any standard text on
immigration.)
14. "Birds of passage." (Consult any standard text on immigration.)
15. Immigration and the trade unions. (Carlton, _History and Problems
of Organized Labor_, chapter xi. See also any standard text on
immigration.)
16. Social aspects of immigration. (Consult any standard text on
immigration.)
17. Political aspects of immigration. (Consult any standard text on
immigration.)
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, _American
Democracy and Asiatic Citizenship_.)
19. Japanese immigration. (_Annals_, vol. xciii, part i; Jenks and
Lauck, _The Immigration Problem_, pages 241-252; Steiner, _The
Japanese Invasion_; Gulick, _American Democracy and Asiatic
Citizenship_.)
20. Americanization. (_Annals_, vol. xciii, part in; Woods, _Americans
in Process_; Steiner, _From Alien to Citizen_; Bogardus, _Essentials
of Americanization_; Roberts, _The Problem of Americanization_)
FOR CLASSROOM DISCUSSION
21. Is assisted immigration an evil?
22. Can immigrants be redistributed effectively by governmental
agencies?
23. Should we retain the literacy test as part of our immigration
policy?
24. At the present time many aliens journey across the Atlantic only
to find that, for various reasons, they cannot be admitted to this
country. How might the resulting disappointment and loss of time and
money be avoided?
CHAPTER XXI
CRIME AND CORRECTION
228. THE NATURE OF CRIME.--A crime is an act which is punishable by
law because it is considered injurious to the community. If the
average man were a hermit, living entirely alone, his actions would
affect only himself, and he would be subjected to little or no control
by any community. But the average man is a member of a highly
civilized community, and what he does, or what he fails to do, often
profoundly affects other individuals. Members of the community
therefore agree upon standards of conduct, to which individuals must
conform. [Footnote: Where democracy does not exist, or is only
partially developed, laws may be imposed upon the group from without.
In such a country as the United States, however, legal standards of
conduct are preeminently the result of mutual agreements, freely
entered into.] It is the failure to conform to these standards which
constitutes a crime, and which entails punishment by law.
What constitutes a crime depends, of course, upon the level of
civilization reached by a community, and upon the interpretation which
it places upon right conduct. A deed considered heroic in one age may
be considered a crime in a later century. In the days of chivalry, for
example, it was sometimes considered heroic to rob or even kill wicked
nobles in order to distribute their wealth to the poor. At the present
time, of course, such acts would constitute a crime.
229. THE CAUSES OF CRIME.--The causes of crime are so various and so
complex that their accurate classification is impossible. But some
light may be thrown upon the subject if we think of crime as
influenced by economic, social, personal, and political factors.
Looking at crime from an economic point of view, it is obvious that
poverty often accompanies crime. In many cases, it is claimed, such
crimes as larceny, forgery, and robbery are directly traceable to
poverty. Similarly, it is said that unemployment and industrial
accidents may incite individuals to crime. Many authorities claim,
however, that while bad economic conditions accompany and often
encourage crime, such conditions alone are not a direct cause of
crime. According to this latter view, poverty, for example, will not
cause a person to commit a crime unless he is feeble-minded, depraved
in morals, or otherwise defective in character.
While there is a good deal of dispute as to whether or not poverty is
a direct cause of crime, it is quite generally agreed that a bad
economic situation gives rise to social conditions which can be
definitely connected with criminality. The strain and artificiality of
urban life, together with the difficulty of obtaining inexpensive and
wholesome recreation in the poorer sections of large cities, has a
close connection with crime. The overcrowding so common in tenement
districts renders difficult or impossible the maintenance of high
moral standards. Where mother or children are habitually employed
outside the home, the young are often denied proper home training.
Divorce, desertion, or the death of the bread-winner may break up the
family and indirectly give rise to illiteracy, vice, and crime.
Often indistinguishable from the social causes are the personal causes
of crime. Where alcoholism or vicious habits are given as the cause of
crime, it may be impossible to say whether social or personal defect
is primarily to blame. Illiteracy, superficially a _personal_ cause of
crime, may often be traced to a bad _social_ environment. Thus an
individual may be illiterate because his parents were unwilling or
unable to send him to school, or because evil companions discouraged
him from study. Such personal causes as mental defect are extremely
important, indeed, many students maintain that bad economic and social
conditions are negligible causes of crime, unless found in connection
with 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 understanding
the nature of their act. After children have committed petty offenses
through carelessness or a sense of mischief, the harshness of the
police may so embitter or antagonize the culprits that their criminal
tendencies are intensified. An important cause of crime is the custom,
still common in many states, of imprisoning young and first offenders
in county jails, where they are allowed to mingle with, and learn
about crime from, hardened and depraved criminals.
230. THE REMEDIES FOR CRIME.--The causes of crime suggest the nature
of its remedies. Wherever bad economic conditions either directly or
indirectly encourage crime, the remedy is, of course, the relief or
abolition of poverty. This problem has already been discussed.
Since bad social conditions are often the result of poverty, any
measures which will lessen poverty will also remove many of the so-
called social causes of crime. Education, the safeguarding of the
home, constructive charity, and similar measures will also help to
remove the social causes of crime. These questions are discussed
elsewhere in this text, and need not be gone into here.
The improvement of economic and social conditions will ultimately help
to eliminate bad heredity, vice, and other of the personal causes of
crime.
With the understanding, then, that the eradication of the economic,
social and personal causes of crime is discussed elsewhere, we may
here confine ourselves to the question of preventing crime by
remedying the defects of government.
231. JUSTICE AS AN IDEAL.--Justice has constituted one of the basic
ideals 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, right
or justice," declared that great document. This conception was later
glorified into an ideal which, after having persisted for four
centuries in England, was brought to the New World by the English
colonists. The first ten amendments to the Federal Constitution and
the Bill of Rights contained in the constitutions of the several
states have been called by Lord Bryce "the legitimate children of
Magna Charta." Since the beginning of our history, thus, a great
cornerstone of American democracy has been the concept of sound and
equitable law, impartially and effectively administered.
232. THE DENIAL OF JUSTICE.--Within the last decade we have come to
realize that in many of the criminal courts of this country justice is
an ideal rather than a fact. "The administration of criminal law in
all the states of this Union," said Chief Justice Taft a few years
ago, "is a disgrace to civilization."
Our criminal law is administered unjustly in two ways.
First, it sometimes allows the rich, the cunning, and the powerful
offenders to escape the penalty for their crimes. In many states the
court dockets are so crowded that influential offenders are not
convicted for years, if at all. Rich prisoners may be released on
bail, and consideration of their case so delayed that the evidence
disappears. Public interest is diverted to new cases, and eventually
the case may be quietly dismissed. Mr. Taft points out that we lead
the world in the number of serious crimes which go unpunished. Appeals
are allowed almost as a matter of course, so that in many serious
criminal trials the original verdict is only the beginning of the
case.
Second, the law which often allows the powerful and crafty to avoid
punishment may operate to deny justice to the poor. Ignorant prisoners
are in many cases so bewildered by cumbersome and technical court
procedure that they allow their cases to be disposed of without
adequate protection of their rights. Often they have no one to advise
them as to their constitutional rights and privileges. If they are not
only ignorant but poor, they find themselves unable to employ proper
counsel. The Constitution indeed recognizes the right of an accused
person to have counsel, but in many states if a man is too poor or too
ignorant to secure a lawyer, he is obliged to stand trial without
anyone to represent or advise him. In some states, the court appoints
a lawyer to represent such defendants. Sometimes the assigned counsel
is dishonest, and too often his primary object is to get a fee rather
than to secure justice for his client. Generally the counsel so
appointed is inexperienced, and consequently no match for an able and
experienced prosecuting attorney, whose reputation may depend upon the
number of convictions that he secures.
233. THE REFORM OF CRIMINAL PROCEDURE.--The reform of criminal
procedure is assuming great importance as a problem of American
democracy. In many states there is a demand for a wider and more
energetic use of the Bertillon and finger print systems for the
identification of criminals. Because of the fact that in our large
cities a heavy percentage of crimes are committed without the
subsequent arrest of the culprit, there is a growing demand for the
improvement of our police systems. Our criminal law needs to be
simplified, so that justice may not be delayed by technicalities, long
arguments on the admissibility of evidence, and the abuse of the right
of appeal. Probably a good many of the delays and technicalities of
legal procedure could be avoided if at the trial the judge were to
exercise a greater amount of control over the proceedings.
The reform of criminal procedure has a double aim. First, it aims to
reorganize and perfect criminal procedure so that persons who have
committed an offense will be apprehended and always made to pay the
penalty for their crimes. Toward the achievement of this ideal we have
as yet done very little. We are still woefully behind such a country
as England, where justice is administered with relative rapidity and
sureness. Second, the reform of criminal procedure aims to prevent the
law from bearing with undue weight upon the poor and ignorant. Here we
are making greater progress. Let us notice what is being done to
guarantee justice to persons who are unable adequately to safeguard
their own legal rights.
234. THE LEGAL AID SOCIETY.--A valuable institution is the legal aid
society, which originated in New York City in 1876, and which has
since spread to other parts of the country. Of the forty legal aid
societies now in existence in this country, some of the better known
are located in New York City, Los Angeles, Kansas City, Boston, and
Chicago. The legal aid society is generally a private organization,
created and maintained by public-spirited citizens who believe that
the poor and ignorant ought to be given legal advice free of charge,
or upon the payment of a nominal fee. These societies extend advice on
both civil and criminal matters. The legal aid society helps
materially to secure justice by acquainting the individual with his
legal rights, and by acting as his counsel in court. Such
organizations are especially valuable in safeguarding the rights and
privileges of immigrants in large cities. The total number of persons
helped annually by legal aid societies in the United States is over
100,000.
235. THE PUBLIC DEFENDER.--The Public Defender movement is an
outgrowth of the feeling that it is unfair for the court to assign an
inexperienced and sometimes unreliable lawyer to defend a penniless
prisoner, while the case is prosecuted by a skilful district attorney.
In spite of the presumption that the prisoner is innocent until he is
proved guilty, such practices as this have operated as though the
prisoner were presumed to be guilty.
In 1912 Oklahoma attempted to remedy this evil by appointing a Public
Defender whose duty it should be to aid in the defense of persons
unable to employ counsel. The next year the city of Los Angeles
appointed a Public Defender who, as a sworn public counsel of
experience and integrity, makes it his business to defend poor
prisoners without charge. A few years later, Portland, Oregon, and
Omaha, Nebraska, appointed similar officers. Since 1916 many other
cities, and a few states, have provided for a Public Defender of some
kind, although in many cases the provision is as yet inadequate. In
all cities in which the plan has been given a trial, the Public
Defender has been instrumental in securing justice for the poor, and
in raising the moral tone of the criminal trial. By eliminating much
unnecessary delay from the criminal trial, the Public Defender has
also helped to reduce court expenses.
236. CHANGING IDEALS IN PENOLOGY.--In the early stages of society the
spirit of revenge seems to have been a chief motive in the punishment
of criminals, although the desire to prevent crime must also have been
a factor. With the progress of civilization revenge declined in
importance, and the punishment of the criminal seems to have been
undertaken chiefly for the purpose of preventing future crimes. Long
periods of imprisonment, inhuman punishments, and the frequent use of
the death penalty were characteristic of this attitude toward crime.
Curiously enough, punishments were imposed according to the
seriousness of the crime committed, without regard to the character
and needs of the criminal.
Of recent years the theory of punishment has been still further
modified. In the first place, we have begun to doubt if punishment
always serves a useful purpose. Punishment does not always deter
criminals, and for this reason it is likely that the death penalty and
other cruel and inhuman methods of punishment may be dispensed with,
without a resultant increase in the amount of crime. In the second
place, punishment has taken on a new aim. More and more we are coming
to believe that it should be imposed, not according to the seriousness
of the crime committed, but according as the individual criminal needs
to be punished in order to effect his reformation. This new attitude
is based upon the assumption that the criminal is a person who is not
adapted to the conditions of modern life, and that the chief aim of
the authorities should be so to reform him that he will become a
useful member of society. In case reform seems impossible, the
criminal should be segregated in an institution.
237. INDIVIDUALIZED TREATMENT OF OFFENDERS.--The emphasis now placed
upon reformation has made necessary a new point of view on the part of
the public. We are beginning to make use of a mass of data furnished
by physiology, psychology, and sociology, and on the basis of these
data to subject prisoners to individualized treatment. Instead of
herding all offenders into a single institution such as the county
jail or the penitentiary, we are beginning to inquire, first of all,
whether the prisoner might not be treated most effectively outside
prison walls. For those offenders who seem to require institutional
treatment, we are developing a whole series of institutions, designed
to care for special types of abnormality. Industrial and farm colonies
for petty offenders and occasional criminals, hospitals and colonies
for the mentally defective, industrial schools and reformatories for
certain types of juvenile offenders, and penitentiaries for hardened
offenders, all these are included in the correctional system of the
more progressive states.
238. SUBSTITUTES FOR IMPRISONMENT.--The belief is growing that young
offenders, first offenders, and those committing petty crimes, may
often be corrected without actual imprisonment. Increasingly common is
the probation system, the essence of which is to suspend the sentence
of the court upon certain conditions. The offender is placed in charge
of a court officer who will stand in the relation of friend and
guardian to him, in order to supervise his conduct and to attempt his
reformation. The success of the probation system depends largely upon
the care and judgment with which probation officers control their
charges.
The use of the fine deserves mention. Generally the sentence for a
petty offense is a fine, with imprisonment as an alternative in case
the prisoner is unable to pay the fine. Realizing the corrupting
influence of the jail sentence for first or slight offenders, court
officials in many cities are making the payment of the fine less
difficult. In Buffalo, Indianapolis, Chicago, and other cities it is
customary in some cases to allow the payment of a fine in instalments.
This ultimately secures the fine; it has a disciplinary effect upon
the offender; and it keeps him out of jail.
239. MENTAL DEFECTIVES.--Recent progress in medicine and psychology
has demonstrated that many criminals are mentally defective. Such
persons are not fully responsible for their acts, and nothing is to be
gained by committing them to prison. They need special treatment in
institutions for the insane, the feeble-minded, and the otherwise
defective. In recognition of this fact, the criminal courts of our
larger cities now make extensive use of psychopathic experts. It is
the duty of these experts to determine the mental status of the
prisoner, and, in case he is found to be mentally defective, to
recommend the type of treatment needed.
This is an admirable development, provided care is taken to prevent
the abuse of the insanity plea by influential criminals who, though
normal mentally, seek to evade responsibility for their deliberate
crimes.
240. THE JUVENILE OFFENDER.--It has been proved that a large
percentage of hardened criminals begin their careers by some careless
or mischievous act for which they were severely or unwisely punished.
Formerly, juvenile offenders were treated much as were adult
criminals; more recently we are coming to believe that children ought
not to be committed to penal institutions, but rather should be put on
probation, or sent to correctional institutions of a special type.
Wherever possible, institutional treatment of every kind ought to be
avoided, for the crimes of children are clearly in a different class
from those of the adult. In New York City a few years ago, for
example, half the children brought into court were there because of
the lack of recreation facilities. Petty theft and malicious mischief
are often traceable to bad home influences and the unnatural
surroundings of the city. These circumstances, coupled with the fact
that immature children are often unaware of the seriousness of their
lawless acts, justify the special treatment of the juvenile offender.
241. THE JUVENILE COURT.--The juvenile court has been created to meet
the special needs of the youthful offender. An early institution of
this kind was established in Chicago in 1889. Shortly afterward Denver
established a juvenile court, and since then many other cities have
taken up the idea. In some states county judges are authorized to
suspend the ordinary rules of procedure where the defendant is under
eighteen years of age.
A typical juvenile court provides separate judges and separate
hearings for youthful prisoners. It avoids publicity, investigates the
home life of the youthful offender, and attempts by kindly treatment
to guide him back into a wholesome, honest life. In some cases
delinquent children are sent back to school, in other cases they are
placed on probation, in still other cases special institutional
treatment is provided. Every effort is made to keep juvenile offenders
from associating with habitual criminals. The aim of the court is not
to punish the offender for a particular offense, but to weigh all the
circumstances which have influenced his life, and to correct his wrong
tendencies. Work of this type is preventive in the fullest sense of
the word.
242. THE INDETERMINATE SENTENCE.--The realization that punishment
ought to fit the criminal rather than the crime has led to the
indeterminate sentence. Though not yet widely applied, this reform is
attracting more and more attention. A logical application of the
indeterminate sentence would require prisoners to be committed to
prison, not for a specific term, but for an indefinite period. The
actual length of the prison term would depend upon the prison record
of the individual, and upon the promise that he showed of becoming a
useful 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 the
crime) as soon as it became apparent that they would not repeat the
offense. Hardened criminals, on the other hand, might remain in prison
permanently, even though committed for a trifling offense. Certainly
we ought not to continue to commit and to re-commit hardened criminals
for short terms, when their past conduct proves that they have neither
the intention nor the ability to make proper use of their freedom.
243. THE FUNCTION OF THE MODERN PRISON.--In addition to the principle
of the indeterminate sentence, modern penology has approved a whole
series of supplementary measures. The ideal prison of to-day is not a
gloomy dungeon, but a great plant which attempts to turn criminals
into useful citizens through the use of the school, the chapel, the
workshop, the gymnasium, the library, and even the theatre.
Discipline, the fundamental weakness of offenders against the law, is
a cornerstone of prison life. More and more prisons are adopting the
merit system, according to which prisoners are graded and promoted to
additional privileges on the basis of behavior. In many prisons these
privileges may include an "honor system" and "inmate self-government."
The prison attempts to supply the deficiencies in the convict's early
training. Prisoners are taught to take care of their bodies. They are
taught useful trades, according to their abilities. If illiterate they
may go to the prison school. Religious exercises and moral instruction
are employed to develop a sense of moral values.
When consistent good behavior and earnest endeavor in prison duties
indicate that the prisoner is entitled to another chance in the
outside world, he may be paroled, that is to say, he may be released
on certain conditions. Generally prisoners are not paroled until some
person is found who will guarantee them employment. In many states the
work of the parole board is ably supplemented by unofficial prisoners'
aid societies which help the released man to readjust himself to a
free life. After a certain period of satisfactory conduct on parole
the prisoner is entitled to a full and unconditional discharge. The
whole aim of the parole system is to supervise the actions of the
prisoner, without adding to his irritation or humiliation, but with
sufficient strictness to guard him against temptation and to replace
him 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 in
injustice?
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 of
offenders"?
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_, chapter
xiii.
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, pages
142-143.)
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 criminal
law? (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 Public
Defender 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 your
state.
3. Make a study of a near-by county jail. (Compare data gathered with
Queen, _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 of
offenders are sent to each?
7. Interview, or write to, a prison official in your state regarding
the 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, _American
Government and Politics_, pages 568-577.)
10. Defects in the enforcement of the law. (Reinsch, _Readings on
American 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, _Crime
Prevention_; Lewis, _The Offender_, part ii, chapter ii; _Annals_,
vol. lii, pages 56-60.)
15. Overcrowding in its relation to crime. (Riis, _The Battle with the
Slum_; 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 an
encyclopedia.)
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 systems
of 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 century
the scarcity of labor in the American colonies led to the introduction
of African Negroes as slaves. In response to the demand for slave
labor on the southern plantations, the importation of Negroes
increased steadily during the next century. The slave trade was
nominally abolished in 1808, but Negroes continued to be brought in
until the Civil War period. In September, 1862, President Lincoln
proclaimed abolished both the slave trade and the institution of
slavery in the United States. The legality of this act was
substantiated in 1865 by the Thirteenth Amendment to the Federal
Constitution.
245. RISE OF THE NEGRO PROBLEM.--The Emancipation Proclamation,
followed by the Thirteenth Amendment, conferred freedom upon four
million slaves. In 1868 the Fourteenth Amendment made the freed
Negroes citizens of the United States, and in 1870 the Fifteenth
Amendment enfranchised them. Largely as the result of these measures,
the problem of the slave developed into the present Negro problem. The
racial differences between the white and the Negro, as well as the
demoralizing effects of slavery, promised to render difficult the
adjustment of the Negro to American life. The situation was made more
serious by the suddenness of emancipation, and by the fact that the
vote was extended the Negroes before most of them were ready for it.
The economic, social, and political upheaval effected in the South by
the war, together with the bitterness with which many southern white
men regarded the newly freed Negroes, also contributed to the
difficulty of the situation. Lastly, the Negro became a problem
because of the lack of a national program in his behalf.
246. NUMBERS AND DISTRIBUTION.--In 1920 the Federal census gave
10,463,131 as the Negro population of the United States. According to
these figures the Negro constitutes slightly less than one tenth of
our total population. Eighty-five per cent of the Negroes live in the
South. In Mississippi and South Carolina the Negro exceeds the white
population, while in several other southern states the Negro
constitutes from one fourth to one half of the total population.
About three fourths of our Negroes live in the rural districts. There
is, however, an important migratory movement which operates to
decrease this percentage. There is a growing tendency for southern
Negroes to leave the rural districts and to move cityward. Chiefly
because of the economic attractions of urban life, many rural Negroes
are moving toward the southern city; in search of social equality as
well as greater economic opportunities, many southern Negroes are
migrating 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 self
to external conditions. An important characteristic of the Negro, not
usually taken into account, is his adaptability. Ours is predominantly
a white man's civilization, and we are accustomed to think of the
Negro as an individual who finds it more or less difficult to fit into
our way of living. And yet one reason for believing that the Negro has
a capacity for modern civilization is that he has survived until the
present time. Compare the Negro in this regard with the American
Indian, who, despite his many noble traits, has fared poorly under the
white man's civilization. The Indians of Cuba, for example, were so
proud and unbending that they died out under the slavery which the
early Spanish imposed upon them; the Negro, because of his
teachableness and his passive strength, not only survived slavery, but
has weathered freedom under very disadvantageous circumstances.
248. PROGRESS SINCE THE CIVIL WAR.--The Negro has made considerable
progress since the Civil War. Many Negroes have become independent
farmers and artisans, owning a considerable amount of property.
Despite the backwardness of Negro schools, great progress has been
made in the matter of decreasing Negro illiteracy. Whereas at the
close of the Civil War some ninety per cent of the Negroes were
illiterate, less than a third of our present Negro population is
illiterate. In art, literature and science the Negro has already made
a tolerable showing. Altogether it is likely that an able and
constructive leadership is being developed among the Negroes.
249. PRESENT ECONOMIC CONDITION.--In spite of the substantial progress
made since the Civil War, however, the present economic condition of
the Negro is unsatisfactory. The great majority of Negroes are
unskilled laborers of a shiftless disposition. Because he is
frequently neither a dependable nor an efficient worker, the average
Negro tends to receive low wages. The Negro is not skilled in
manufacturing or mechanical lines, and he is kept out of the higher
trades and professions by reason of illiteracy and social barriers.
Very often the southern Negro is a tenant farmer, carelessly tilling a
small plot of land and mortgaging his crop in order to secure the bare
necessities of life. Large families, inadequately supported, and
reared under insanitary living conditions, are characteristic of the
southern Negro. The failure to save money, and the inability to
protect themselves against exploitation by unscrupulous white men, are
characteristic weaknesses of many Negroes.
250. PRESENT SOCIAL CONDITION.--Though decreasing steadily, Negro
illiteracy is still high. This is a serious evil. Not only does
illiteracy bar the Negro from the education and training of which he
is in such great need, but it allows unscrupulous persons to swindle
and exploit him. The Negro furnishes an abnormally large proportion of
our prison population. Whether or not this is partly the result of
racial characteristics, it is certain that the bad economic and social
conditions surrounding Negro life lead to a high degree of
criminality. In justice to the Negro it should be noted that in many
communities he is apprehended and convicted more often than is the
white culprit. Acts which would go unpunished or even unnoticed if
committed by white men often arouse the community and lead to severe
punishment when committed by Negroes. Statistics on Negro crime are
also influenced by the fact that the poverty of the Negro often causes
him to go to jail while the white offender escapes with a fine.
A serious evil is race mixture between Negroes and whites. This has
gone on since colonial times, until at the present time probably more
than half of the Negroes in the United States have some degree of
white blood. Such mixtures, while probably not disastrous from the
standpoint of biology, have unfortunate consequences socially.
Generally the mulatto offspring are forced to remain members of the
Negro group, where they are subjected to social surroundings which too
often encourage disease, vice, and degeneracy. The majority of the
states now have laws forbidding marriage between Negroes and whites.
Both white and Negro leaders agree that race mixture ought to be
stopped.
251. PRESENT POLITICAL CONDITION.--The Fifteenth Amendment declared
that "the right of citizens of the United States to vote shall not be
denied or abridged by the United States or by any State on account of
race, color, or previous condition of servitude." Yet in many southern
states the Negro is barred from the polls. In many northern cities
where the Negro is allowed the ballot, his ignorance and
irresponsibility make him the prey of political "bosses" who control
his vote. The question of Negro suffrage will be treated later;
[Footnote: See Chapter XXXIII.] here we may content ourselves with
noting that the Negro's right to vote is often restricted. In the
South, at least, it is also true that the Negro has but little share
either in making the laws or in administering them.
252. URGENT NATURE OF THE NEGRO PROBLEM.--The Negro problem was never
of more pressing importance than it is to-day. Illiteracy is still
perilously high, Negro crime is becoming more serious, and the
cityward tendency of the Negro is increasing his susceptibility to
disease and vice. In spite of prohibitive laws, racial intermixture is
continuing, and the problem of the mixed blood is becoming more and
more acute. Social unrest among the masses of southern Negroes is
increasing. The World War created new aims and aspirations among
thousands of Negroes. New leaders are arising to preach racial
equality for the Negro; old leaders are in many cases becoming more
impatient with the attitude of the white population.
253. HESITANCY IN ATTACKING THE PROBLEM.--The American people have
been singularly backward about grappling with the problem of fitting
ten million Negro citizens into the fabric of American democracy. One
explanation of this backwardness is that until recently many have
believed that the Negro would die out under freedom. This expectation
has not been realized, for while the Negro population is increasing
less rapidly than is the white population, it is nevertheless
increasing. The Negro is not dying out. Nor can he be deported to
Liberia 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 individuals
have attacked various phases of the Negro problem with courage and
success, but we are in need of a unified and comprehensive program
rather than of a series of unrelated endeavors. Above all what is
needed is not impassioned opinion or cure-all schemes, but rather the
development of a sound and comprehensive program which shall attack
the problem from a number of angles at the same time. Such a program
must have a double end in view: First, the immediate needs of the
Negro must be met; second, we must permit the Negro to be trained
toward a position in which he will be able to play a useful and
honorable role in our national life. Thus the great comprehensive
purpose of this program is to help the Negro adapt himself to American
life, to aid him in fitting in with our economic, social, and
political institutions, and to encourage him to contribute to the
development of American culture to the best of his ability.
255. EDUCATION.--Education is the most important element of any
program designed to help the Negro. Ability to read and write, the
habit of study, training in correct thinking, all are of such basic
value that it is difficult to understand why we have so long neglected
the education of the Negro. We spend three or four times as much for
the education of the white child _per capita_ as for the education of
the Negro child. Negro schools are sparsely distributed; they are
poorly equipped, and they are sadly hampered by lack of competent
teachers. Clearly we must spend vast sums on Negro education, if we
are to expect marked improvement in the Negro's social and economic
condition. We cannot expect the Negro to cease being a problem until
he has been trained in the fundamentals of citizenship. "The
inadequate provision for the education of the Negro," says the
Southern University Race Commission, "is more than an injustice to
him; it is an injury to the white man. The South cannot realize its
destiny if one third of its population is undeveloped and
inefficient."
256. ECONOMIC ADJUSTMENT.--The Negro cannot be expected to become a
thrifty, responsible citizen until he is rendered capable of earning a
decent living at productive work. He must acquire the habit of working
steadily and efficiently under a system of free contract. This
economic readjustment, many students of the Negro problem believe,
will be attained largely through industrial education. We already have
several excellent industrial training schools for Negroes, including
Hampton and Tuskegee. The latter was made famous by Booker T.
Washington, an ex-slave who devoted his life to the economic
readjustment of his people.
A great deal more must be done in this direction. In spite of the
excellent beginnings made at Hampton and Tuskegee, not more than one
per cent of our Negroes have the privilege of industrial education.
More adequate instruction is needed in methods of agriculture and
stock raising, in the various crafts, and in those professions for
which the Negro seems fitted. The South needs labor badly, but she
cannot use her millions of Negroes effectively until they are turned
into competent and dependable workers. The Negro appears to have
little aptitude for mechanical work, or for mill and factory
employment. Diversified agriculture on a small scale seems to be the
most promising industry for him, and one in which he ought
consistently to be encouraged.
257. THE NEED FOR COÖPERATION.--No permanent solution of the Negro's
difficulties can be attained without the friendly coöperation of all
parties concerned. Most of our Negroes live in the South, but the
Negro is no more a purely southern question than Japanese immigration
is a purely Californian problem. We are one nation, and the problems
of one section are the problems of the whole. The South must not be
left alone, either to neglect the Negro, or to struggle with his
difficulties as best she can. Generous aid must be extended her by the
North, East, and West, before we can expect a solution of the Negro
question.
Furthermore, there must be coöperation between the leaders of the
Negro and white races, otherwise energy will be wasted and inter-
racial bitterness created. Very promising beginnings in this direction
have recently been made in the South. Nevertheless it is to be
regretted that many leaders, both white and Negro, are still prone to
propose "remedies" for the Negro problem which serve their own
interests, but which show little or no regard for the rights of the
other group, or for the welfare of the nation.
Above all, there must be a firm resolve to work toward a fair
solution, and an earnest desire to be just and humane. Hard and
unpleasant facts cannot be argued away, but at least they can be
treated rationally. No solution can be reached except through law and
order. Neither violence nor deceit can solve this or any other
problem. Race riots and lynchings are proof that those who engage in
them are unfit to carry on the work of American democracy.
258. THE PROMISE OF THE NEGRO.--There is a good deal of discussion as
to whether or not the Negro race is merely backward, or whether it is
an inferior race. Those contending that the Negro is only backward
believe that ultimately he can be fitted into the fabric of American
life; those insisting that he is inferior declare that all attempts to
adapt the Negro to American life will prove unavailing.
Academic discussions of this sort are not to the point. As to whether
or not the Negro is backward or inferior, and as to precisely what
each of these terms implies, there must always be a good deal of
dispute. For practical purposes it is enough to admit that the Negro
cannot 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 a
citizen.
At the same time, it should be frankly recognized that the Negro has
shown himself capable of substantial progress. It will be more
appropriate to discuss the inferiority of the Negro when he has failed
to react to the most comprehensive, intelligent, and consistent
program which we are able to draw up. This we have not yet done, and
until it is done, we shall have less cause to deny to the Negro a
capacity for civilization than the Negro will have cause to complain
of our unhelpful attitude toward him. So far as we now know, there is
no scientific justification for believing that the masses of American
Negroes cannot ultimately be trained to a useful sphere in American
life.
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 since
the 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 the
Negro?
10. Why have we delayed the development of a comprehensive plan for
meeting 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, page
21.)
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 in
the South? (_Annals_, page 55.)
TOPICS FOR INVESTIGATION AND REPORT
II
1. African background of the American Negro. (Williamson, _Sociology
of the American Negro_, part i.)
2. Slavery. (Hart, _Social and Economic Forces in American History_,
chapter xix; Callender, _Selections from the Economic History of the
United States_, pages 768-793; Williamson, _Sociology of the American
Negro_, chapter v.)
3. Gains and losses under slavery. (Williamson, _Sociology of the
American Negro_, chapter xxiv.)
4. The Negro in business. (Atlanta University Publications, No. 4.)
5. The Negro in professional occupations. (_Annals_, vol. xlix, pages
10-18.)
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, _Readings
in Social Problems_, pages 769-783; Washington, _The Story of the
Negro_, vol. ii, chapter v; Tillinghast, _The Negro in Africa and
America_, 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 approach
society, the family is the ultimate unit and basis. The whole fabric
of civilization, whether considered from an economic, a social, or a
political standpoint, depends upon the integrity of the family, and
upon the wholesomeness of the home life centering about the father,
mother, and children. The home is the nursery of our fundamental
institutions: it is the origin of our physical and mental
inheritances; it is the center of our training for private and public
life; it is the moral and religious fount which nourishes the ideals
and beliefs which fashion our lives and mould our character. A nation
built upon decaying homes is bound to perish; a nation composed of
normal prosperous families is in a good way to perpetuate itself. It
is of the very greatest importance, therefore, that we inquire into
the character and tendencies of the American family.
260. THE FAMILY IN THE MIDDLE AGES.--Fully to appreciate the nature of
the modern family we must know something of the family as it existed
in 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, most
of the food, clothing, and other necessities consumed by it were
prepared by the family members. Very little in the way of education
and recreation existed beyond the family circle. In religious
activities the family played an important role, family worship under
the leadership of the father being a common domestic function. The
medieval family was stable, partly because legal and religious
authority was concentrated in the hands of the father, partly because
the family members were economically interdependent, and partly
because the social and religious interests of the family members
tended to coincide. Divorce was uncommon, and the children generally
remained in the home until their majority had been attained.
261. THE FAMILY IN MODERN TIMES.--We have already seen that since the
close of the Middle Ages, and especially during the last two
centuries, important economic, social, and political changes have been
going on in civilized society. In common with other social
institutions, the family has been greatly influenced by these changes.
The family which we have described as the medieval type has been
either destroyed or greatly modified, and a new type is being
developed. Probably this new type of family will present substantial
gains over the family of the Middle Ages, nevertheless the period of
transition is fraught with danger. A great problem of American
democracy is to aid in the social readjustment of the family. In order
that we may be competent to aid in this readjustment, let us discover
in what ways the family has been modified by the economic, social, and
political changes referred to above.
262. THE INDUSTRIAL REVOLUTION AND THE FAMILY.--We have examined
somewhat in detail the effect of the Industrial Revolution upon our
economic life; it remains to be pointed out that the same phenomenon
has profoundly affected the character of our most vital social
institution, the family.
Directly or indirectly, the Industrial Revolution has affected family
life among all classes of the population. To some extent capitalism
has given rise to a class of idle rich, living upon the proceeds of
permanent investments, and resorting to extravagance and loose methods
of living in order to occupy their time. This development is doubly
unfortunate. In the first place it renders difficult the maintenance
of normal homes among the idle rich. In the second place, the tendency
of certain types of individuals to imitate and envy the idle rich
encourages 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 great
is the need of specialized training among these groups that marriage
is often delayed until after the age of thirty. The individual is then
in a better position to support a family, but often his habits are so
firmly fixed that he finds it difficult to adapt himself to family
life.
Even more important, perhaps, have been the effects of the Industrial
Revolution upon the masses of wage earners. Men earning low wages are
often unable to marry, or, if they assume that responsibility, they
are unable properly to support their families. In spite of the fact
that capitalism has greatly increased our material welfare, the
dependence of large numbers of people upon day wages increases the
hazards of family life. Industrial accidents, occupational diseases,
or the interruption of earnings by strikes and unemployment,--any one
of these mishaps may work a hardship upon the wage-earner's family.
Poverty may induce child labor, deprive the family of proper food and
other necessities, and retard the education of the children. Finally
it may so emphasize the elements of strain and worry that parents are
unable to give proper attention to the training of their children.
263. THE FACTORY SYSTEM AND THE HOME.--The Industrial Revolution has
lessened the economic importance of the home. The typical modern
family is no longer self-sufficing, but is dependent upon the factory
system for many commodities formerly prepared within the home circle.
Spinning, weaving, tailoring, shoe-making, soap-making, and other
industries have moved out of the home and into the factory. Even the
preparation of food is increasingly a function of agencies outside the
home. Especially in cities there has been a steady development of
restaurants, 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 the
same time the development of our industrial life has notably increased
the amount of work to be done outside the home. The outcome of these
two complementary forces has been that not only the father, but often
the mother and the half-grown children as well, have been drawn into
industry. As the result of this development, the economic
interdependence of the family has been destroyed, and the way has been
opened to the disintegration of the home. Social contacts between
family members have decreased, while the specialized character of the
individual's daily work has operated to break down the common
interests which family members formerly had outside the home.
264. LACK OF PREPARATION FOR HOME-MAKING.--The factory system has
rendered more difficult the preparation of our boys and girls for
home-making. Where boys go out to work at an early age and are
deprived of home training during the adolescent period, neither father
nor mother has the opportunity properly to acquaint them with the
nature and responsibilities of home-making. Girls very often are
reared without adequate knowledge of cooking, sewing, and other
household arts. This is due, partly to the transfer of many of the
domestic functions to specialists beyond the home, and partly to the
fact that where girls go into industry they spend most of their time
outside the home. In the case of both boys and girls, the decreased
amount of time spent in the home not only prevents proper training by
the parents, but it stresses outside interests which are too often
opposed to domestic ideals. Many parents either allow or encourage
their children to acquire frivolous habits. As the result of all of
these factors, both young men and young women frequently marry without
having been properly prepared for the responsibilities of home-making.
265. DIFFICULTIES OF HOME-MAKING IN CROWDED CITIES.--With the
development of manufacturing, a larger and larger proportion of our
people have made their homes in large cities. To many, city life has
brought increased opportunities for education and recreation,
nevertheless it is difficult to maintain a normal home life in a
crowded city. Urban life is highly artificial Simple and wholesome
amusements are less common than expensive and injurious forms of
recreation. The noise and jar of city life often result in strain and
jaded nerves. The scarcity and high cost of house room is, for many
city dwellers, an unavoidable evil. The poor are cramped into small,
uncomfortable tenements, while even the well-to-do are frequently
found in congested apartment houses. Under such circumstances, the
home often becomes merely a lodging place. Social life is developed
out of, rather than in, the home. For the children of the poor there
is often no yard and no adequate provision for recreation. Among the
rich, conditions are somewhat better, though in fashionable apartment
houses children are frequently objected to by neighboring tenants or
banned by landlords.
266. ECONOMIC INDEPENDENCE OF WOMEN.--Until very recently a married
woman was economically dependent upon her husband. But one of the
effects of the Industrial Revolution has been to make many women
economically independent. Women are entering the industrial field with
great rapidity, and their presence there is now taken as a matter of
course. Many women now avoid marriage, partly because domestic
interests fail to attract them, and partly because they have become
genuinely interested in industry. Where domesticity is the ultimate
aim, many women delay marriage because self-support renders them both
able and desirous of retaining their independence for a considerable
period.
Domestic tranquillity is sometimes disturbed by the fact that wives
were formerly self-supporting girls. In most cases wives are dependent
upon their husbands in money matters, a situation which is apt to
irritate women who were formerly self-supporting. The husband is often
inclined to rate the generalized character of housework as being of
less importance than his own highly specialized work. The wife's
irritation at this may be increased by the fact that often she, too,
believes that her domestic duties are less dignified and less valuable
than her former work.
Not only has the former independence of the wife made her less
tolerant of domestic wrongs and slights, but the realization that she
can support herself, frequently encourages her to seek a divorce. The
temptation to take this step is increased by the fact that public
opinion now rarely frowns upon a divorced woman. This is in striking
contrast to the situation two hundred years ago, when most divorced
women were not only unable to support themselves, but were socially
ostracized.
267. POLITICAL EMANCIPATION OF WOMEN.--Until very recently women have
been legally and politically subordinate to men. As recently as a
century ago women in the leading countries of the world were allowed
neither to vote, nor to contract debts in their own name, nor to hold
or will property.
But within the last century women have been emancipated politically.
Property rights have been extended them; the growth of the woman's
movement has resulted in the winning of female suffrage. Economic
independence and social freedom have combined with political
emancipation 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 resultant
neglect of the home. Higher education for women, including a wider
knowledge of legal matters, has acquainted women with their legal
rights and privileges, and has made them familiar with the steps
necessary to secure a divorce.
268. INDIVIDUALISM MAY BE EXAGGERATED.--The American people are
celebrated for their strongly individualistic character. This trait is
closely related to the initiative and self-reliance which have helped
toward our industrial success; on the other hand, individualism may be
carried to the point of selfishness. It is desirable, of course, that
both men and women maintain high standards of living, and that they
cultivate their respective personalities. It should be noted, however,
that marriage is often delayed or altogether avoided because of
selfish ambition and the desire to live a care-free and self-centered
life. The insistence which many young people place upon personal
rights has encouraged the belief that marriage is intended for man's
and woman's convenience, rather than for the building of normal homes
and the development of community life. In too many marriages the
contracting parties selfishly refuse to make the mutual concessions
necessary in married life and so wreck their domestic happiness.
269. THE DIVORCE EVIL.--Family instability has been increased by the
demoralizing influences which we have been discussing. A familiar
symptom of family instability is the divorce rate. One out of every
eight 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 world
together, but our divorce rate is increasing three times as fast as is
our population.
The value of these statistics is affected by two factors. In the first
place, much domestic unhappiness does not express itself in the
separation of husband and wife. Or, where such separation does take
place, it may not be through the divorce court. Among the city poor,
for example, desertion is four times as common as is divorce. Thus the
divorce rate indicates only a share of family instability.
The second modifying factor, however, lessens the force of our divorce
statistics. A high divorce rate is to be interpreted with care. Our
divorce rate is higher than that of European countries, but it should
be remembered that in those countries where customs, laws, and
religious beliefs are relatively conservative, families may be held
together legally in spite of the fact that they have already
disintegrated. Thus family life may be as unstable in a country in
which the divorce rate is low, as in a country in which the divorce
rate is high.
270. LAXITY OF OUR DIVORCE LAWS.--Although divorce may sometimes be
necessary, it is clear that in many of the states of the Union divorce
laws are too lax. The practice of the states as regards divorce is
divergent: in South Carolina divorce is absolutely prohibited; in the
remaining states there is a variable number of grounds upon which
divorce 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 of
divorce laws. In some states divorces have been secured in fifteen
minutes, being granted without any attempt at solemnity, with no
adequate investigation, and with numerous opportunities for collusion
between the parties involved. The effect of this laxness has been to
encourage the dissolution of the home for trivial and improper causes.
271. THE QUESTION OF STRICTER DIVORCE LAWS.--Uniform divorce laws
among the several states are now being agitated. The essential
provisions of such laws may be outlined as follows: It is desirable to
have a court of domestic relations, which shall carefully and wisely
attempt a reconciliation of husband and wife before divorce
proceedings are resorted to. Applicants for divorce should be _bona
fide_ residents of the state in which the suit is filed, and should be
required to reside in the state two years before a decree of absolute
divorce is granted. In some states at least, the number of grounds
upon which divorce may be secured should be reduced. An adequate
investigation should be undertaken, both in order to determine the
justice of the suit, and to prevent collusion. The primary aim of the
divorce laws should be to allow relief from a vicious and hopelessly
wrecked union, but at the same time to prevent the misuse of the
statutes by irresponsible and unscrupulous persons.
272. LAXITY OF OUR MARRIAGE LAWS.--The fact that unwise marriages are
an immediate cause of divorce leads back to the question of our
marriage laws. Marriage laws often permit the mating of couples unfit
for home-making. In some states the authorities are not overcareful to
prevent the marriage of persons who are mentally defective. There is
among the several states no agreement as to the legal age of marriage,
and no agreement as to the relationship within which marriage is
forbidden. Hasty unions have been encouraged by the lack of solemnity
which characterizes civil marriage. Marriage is more and more a civil
contract, devoid of religious sanctions and spiritual associations.
Many consider marriage as a civil relation not radically different
from any other contract. The effect of this changed attitude has been
to encourage the enactment of loose marriage laws, and the careless
administration of sound marriage laws.
273. THE QUESTION OF STRICTER MARRIAGE LAWS.--Stricter marriage laws
are being advocated in many states. We know far too little about
eugenics to warrant prediction as to the type of individuals best
fitted to build normal homes, but it is clearly desirable to prohibit
the marriage of all mental defectives. There are also good reasons for
the restriction of the marriage of minors, of persons between whose
ages there is a wide disparity, and of persons who are members of
widely divergent races. It would probably check hasty marriages to
increase the length of time elapsing between the issuance of the
marriage license and the performance of the ceremony. If modern
marriages were more distinctly upon a religious basis, it is likely
that many persons who now rush thoughtlessly into marriage would be
led seriously to reflect upon the significance of the step.
274. LAW NOT THE UTLIMATE REMEDY FOR FAMILY INSTABILITY.--The careful
enactment and wise administration of sound laws on marriage and
divorce will undoubtedly check the number of unhappy and unsuccessful
marriages. Nevertheless, law is not the ultimate remedy for family
instability. Unduly restrictive marriage laws may result in abnormal
tendencies among certain classes of the population, while severe
prohibitions upon divorce may prevent individuals from securing
release from a hopelessly wrecked marriage. Divorce is only a symptom
of deeper-lying evils. Really to remove the dangers which threaten the
integrity of the family we must go deeper than legislation.
275. ECONOMIC AND SOCIAL READJUSTMENT.--One fundamental method of
safeguarding the family is to counteract the injurious effects of the
Industrial Revolution. Poverty must be lessened or eliminated, so that
men will be enabled to marry and support families decently. The evils
of overcrowding must be attacked in the interest of a normal home
life. Mothers' pensions and social insurance are desirable methods of
protecting the laborer's family against the risks of industry. The
prohibition of child labor and the safeguarding of women in industry
will also tend to keep the family intact, and to permit proper home
training. In short, any measures which will help individuals to adjust
themselves to the economic and social changes of the present age will
provide a more firm and solid foundation for a normal family life.
276. EDUCATION AND THE FAMILY.--Far more fundamental than legislation
on marriage and divorce is the training of young people toward a
fuller appreciation of the responsibilities of home-making. In the
problem of family instability, laws reach symptoms, while education
attacks causes. By education is here meant not merely formal training
in the school, but character-building of every type. This includes
training in the home, in the school, and in the church. Only when boys
and girls are accorded sound training by these various agencies will
they be properly prepared to make homes.
Our whole educational system ought to emphasize the importance of a
pure and wholesome family life. The sanctity of the marriage bond, the
seriousness of family responsibilities, and the duty to rear a normal
healthy family, ought to be impressed upon every boy and girl. Young
people should be taught to consider adolescence as a period of
preparation for home-building. During this period it is the duty of
the boy to fit himself for the proper support of a family, while the
girl ought to feel obligated to become familiar with the tasks and
duties of housekeeping. The choice of a husband or wife ought to be
made, not on the basis of passing fancy, but with regard to a life of
mutual service. Extreme individualism ought to be discouraged;
personal pleasure ought to be interpreted in the light of marriage as
a partnership. Above all, marriage should be faced with the
realization that it requires adaptation and concessions on the part of
both husband and wife. Mutual consideration and respect must
predominate in the future American family, while the spirit of
impatience 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 industrial
center?
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 factors
must 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 the
problem of the family?
14. What should be the chief aims of education with regard to
preparation 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, pages
132-138.)
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, pages
322-327.)
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 many
commodities now produced outside the home were made within the family
circle a half century ago.
2. Make a list of the advantages which the city offers over the
country or the small town. Make another list showing wherein it is
more difficult to maintain a normal home in the city than in the more
sparsely settled districts of the country.
3. The extent to which girls and women in your community are going
into 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 and
divorce laws of your state?
II
7. The primitive family. (Goodsell, _The Family as a Social and
Educational Institution,_ chapter ii.)
8. The family in the early stages of civilization. (Burch and
Patterson, _American Social Problems,_ chapter vi.)
9. Influence of Christianity upon the family. (Goodsell, _The Family
as a Social and Educational Institution,_ chapter vi.)
10. The family in the Middle Ages. (Goodsell, _The Family as a Social
and 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 a
Social 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 of
the Home._)
15. Desertion. (Colcord, _Broken Homes._)
16. Divorce statistics. (Willcox, _The Divorce Problem,_ a study in
statistics; 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 constitutional
amendment, to pass a Federal divorce law?
20. Should men be required to have a minimum income before being
granted a marriage license?
21. Is domestic science more or less important now than it was a
century ago?
22. Are the chances of a successful marriage greater or less if
marriage takes place after both parties are more than twenty-five
years of age?
CHAPTER XXIV
DEPENDENCY: ITS RELIEF AND PREVENTION
277. THE MEDIEVAL NEIGHBORHOOD.--Throughout the earlier part of the
medieval period the majority of the common people of western Europe
lived in small agricultural communities. There was little in the way
of trade or travel, for the area comprising the village or the feudal
manor was relatively self-sufficing. The interests of the people
centered almost wholly about the local neighborhood into which they
had been born, and in which they lived and died. Life was stable, and
the daily work of the peasants entailed few hazards. When, because of
illness or accident, individuals were temporarily unable to support
themselves, informal aid was extended them by neighbors and friends.
In case of a more serious dependency, growing out of physical or
mental defect, for example, the aid extended by neighbors might be
supplemented by help from the feudal lord. The few strangers in the
community found the monasteries always open to them, regardless of the
character of their need.
278. BREAKDOWN OF THE MEDIEVAL NEIGHBORHOOD.--During the latter half
of the medieval period, and during the earlier part of the modern
period, a number of factors combined to break down this early type of
neighborhood. The Crusades, the decay of feudalism, and the
Renaissance disrupted the stable, isolated, and self-sufficing life of
the medieval neighborhood. The discovery of America and the growth of
towns and cities stimulated trade and travel. People moved about more,
strangers came into the community, family contacts and friendships
were broken, and community life became more impersonal. For many
people a change of habitation or of occupation increased the hazards
of life, while the decline of the neighborhood spirit made informal
aid by neighbors and friends less available. To meet the growing needs
of the dependent classes, the Church extended and improved its system
of almsgiving. To a greater extent than ever before the monasteries
became havens of refuge for the helpless and friendless. The clergy
not only themselves dispensed alms, but encouraged the wealthy laity
to do likewise.
Unfortunately, however, the aim of almsgiving in this period was not
so much to help the dependent back to self-support, as to increase the
piety of the individual dispensing the alms. Pauperism was looked upon
as inevitable, and the moral effect upon the giver was generally of
more importance than was the use that the needy made of the alms
received.
279. RISE OF THE URBAN NEIGHBORHOOD.--The breakdown of the medieval
neighborhood was completed by the Industrial Revolution. The factory
system drew large numbers of countrymen to the cities. Here they
worked long hours in insanitary work-shops, and lived in crowded
tenements devoid of many improvements which we now regard as necessary
to health and comfort. Home life was disrupted, and neighborhood ties
were broken in the process of adjusting agricultural laborers to the
factory system. The medieval neighborhood began to be supplanted by a
new type of neighborhood, one primarily urban and impersonal in
character. This new type of neighborhood brought with it greater
hazards for the poor, and at the same time offered fewer opportunities
for mutual aid between neighbors. Under such circumstances, the
problem of dependency became increasingly serious.
280. EXTENT OF DEPENDENCY IN MODERN TIMES.--One of the vital problems
of American democracy is the proper care of those individuals who are
unable, either to support themselves, or otherwise to protect
themselves against the hazards of modern life. The extent to which
individuals are dependent for help upon agencies outside their family
circle is unknown. Statistics are meager, and the complex nature of
dependency renders it difficult of measurement. Perhaps a reasonable
estimate of dependency in the United States is that at some time
during the year about five per cent of the population seeks charitable
assistance. The total amount expended annually for the care of the
dependent classes in the United States is more than half a billion
dollars.
281. CAUSES OF DEPENDENCY.--The causes of dependency in a modern
community are difficult to analyze. Generally the applicant for
charity is not in a state of dependency because of a single isolated
cause, but because of a number of combined causes, interlocking in a
most confusing way. In the effort to throw light upon this tangled
situation, let us briefly survey the problem from the economic,
social, personal, and political viewpoint.
From the economic viewpoint much dependency is the result of
maladjustments in industry. Most laborers have little or no savings,
so that when unemployment, strikes, industrial accidents, or crises
interrupt their earnings, they are soon forced to fall back upon
charity. Economic causes figure in from fifty to eighty per cent of
charity cases, either as minor or major factors. In the majority of
these cases the unemployment or other handicap of the laborer is due
to industrial maladjustments beyond his power to control.
Closely connected with the economic causes of dependency are the
social causes. The crowding of large numbers of workmen into cities
leads to abnormal living conditions, which encourage ill-health,
disease, and vice. Among unskilled laborers, poverty and the large
number of children often prevent the young from securing a helpful
amount 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, may
influence dependency. Child labor and the employment of mothers in
industry prevent a normal family life, and may be intimately
associated with illiteracy, low moral standards, and pauperism.
Often indistinguishable from social causes are the personal causes of
dependency. Laziness, irresponsibility, and thriftlessness figure in
from ten to fifteen per cent of charity cases. Penniless old age is
often the outcome of bad personal habits in youth and middle life.
Idling, gambling, and other vicious habits are important causes of
pauperism. Sickness is a factor in at least a third of charity cases,
while disease figures in seventy-five per cent of such cases. Physical
or mental defect is of great importance in dependency, often
accompanying bad personal habits as either cause or effect. The
feeble-minded, the epileptic, and the insane constitute a serious
burden upon the community.
Defects in government have in some cases either encouraged dependency,
or have perpetuated it. In so far as we have neglected legislation
designed to reduce the force of industrial maladjustments, political
factors may be said markedly to influence dependency. Our tardiness in
protecting the labor of women and children is certainly responsible
for a share of dependency. Our failure to adopt a comprehensive
program of social insurance has added to the burden upon charity.
Housing is receiving more and more attention in our cities, yet the
living quarters in many districts continue to be sources of ill-health
and vice. Probably we shall eliminate a share of dependency when we
shall have established a comprehensive system of state and Federal
employment bureaus. The wise restriction of immigration is also
important, as is the matter of vocational education for the unskilled
classes.
282. THE GIVING OF ALMS.--Until the period of the Reformation in
Europe, the distribution of alms by the clergy and by pious laymen was
the chief method of dealing with the problem of dependency. Then the
Reformation crippled the temporal power of the Church, and
ecclesiastical almsgiving declined in importance. The place formerly
held by the Church was filled, partly by public almshouses or
workhouses, and partly by indiscriminate and unorganized almsgiving on
the part of kind-hearted individuals. Individuals distributed alms
chiefly to dependents with whom they were personally acquainted, and
whose needs could be effectively met without their being removed to an
institution. Wandering dependents, and unfortunates whose needs were
relatively serious and permanent, were cared for in the almshouse.
This latter institution developed very early in England, and appeared
in colonial America in the seventeenth century. Until about 1850 it
was often the only institution in American communities which cared for
the helpless adult dependent. The almshouse, as it existed in this
country 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 of
modern dependency solely by the giving of alms illustrates the
difficulty of employing an ancient and simple method of treatment for
a disease which has become highly complex.
Almsgiving by individuals very often pauperizes rather than helps the
individual to help himself. When the dominant aim of the almsgiver is
to satisfy himself as to his piety, it is only by accident that the
alms really help the recipient. Very often what is needed is not money
or material aid in other form, but wise direction and friendly advice.
There is still a great deal of unwise and indiscriminate almsgiving by
individuals, but the spread of new ideals of social help is probably
cutting down the amount.
The almshouse, as it existed in the last century, was productive of
much evil. Very often superintendents were allowed to run these
institutions for personal profit, a practice which allowed the
exploitation and neglect of the inmates. The practice of herding into
this generalized institution every variety of dependent had great
drawbacks. Specialized care and treatment were impossible. Disease was
transmitted, and vice encouraged, by the failure properly to segregate
various types of dependents. Inmates were in many cases allowed to
enter and leave the institution at will, a privilege which encouraged
shiftlessness and improvidence.
284. THE EVOLUTION OF NEW IDEALS.--After the middle of the last
century our attitude toward the dependent classes began to change
rapidly. There was a gradual abandonment of almsgiving as the sole
method of attacking dependency. Rising standards of conduct
contributed to the development of new ideals, some of them now fairly
well established, and some of them still in the formative process. The
general content of these new ideals may be briefly described as
follows:
The primary aim of those who come in contact with the dependent
classes should be to help those classes, rather than to satisfy pious
aspirations or to indulge sentimental promptings. Rather than
believing that alms are helpful because they are gratefully received,
we should first discover what will help the dependent, and then train
ourselves and him to take satisfaction in that which is helpful.
Poverty is not to be taken for granted. It is neither inevitable nor
irremedial. It is a social disease which we must attack with the aim
of destroying.
When individuals are found in an emergency they should be given
relief, regardless of personal merit. The extension of relief in case
of fire, flood or other accident is only an act of humanity.
A different and more productive form of help is remedial work. This
type of work often accompanies and follows relief work. It is
corrective, for example, the finding of employment for a friendless
man, or the medical treatment of a sick man, is remedial work.
A still higher form of social work is preventive. Hand in hand with
the giving of work to friendless men, and the curing of sick men, for
example, we must undertake measures which will prevent a recurrence of
unemployment on the one hand, and illness on the other. Preventive
work is often indirect, but ultimately it is the most important type
of 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 of
social service. Charity is too often concerned with the pauper class;
social service is a wider term and includes not only what was formerly
known as charity, but also child welfare, settlement work, folk
dancing, and other socializing activities which are helpful in a
modern community, but which have nothing to do with alms. Charity too
often pauperizes and degrades; social service encourages self-help and
self-expression in the vital social relations. Formerly charity was
almost exclusively the function of the pious and the sympathetic; the
present tendency is for social service to become a distinct
profession, administered by highly trained specialists.
285. THE STAGE OF SPECIALIZATION.--One of the signs that we are
recognizing the growing need of an individualized treatment of
dependents, is the degree to which our social service agencies are
becoming specialized. The treatment of the dependent may take either
an institutional or a non-institutional form. Let us briefly notice
the specialization in each of these forms.
The almshouse, almost universal a century ago, is being rapidly
displaced by a series of specialized institutions. In most states
there are now separate institutions for the treatment of the
pauperized, the diseased, the blind, the deaf, the insane, the feeble-
minded, and the otherwise dependent. Inmates of these institutions are
given special treatment by experts. When the defect has been remedied,
the patient is released; in case remedy is impossible, the individual
is segregated and accorded humane and sympathetic treatment during the
rest of his life. This prevents the untold harm of releasing defective
and irresponsible people into the community. Institutions of this
character are largely under state control, and are intended primarily
for individuals who cannot be properly treated in their homes.
Dependents who are only slightly or temporarily handicapped, or who
are not in need of special treatment, may be best cared for in their
homes and by private individuals or associations. In this non-
institutional form of social service there is also a high degree of
specialization. The casual almsgiver has been succeeded by a whole
series of social service agencies. Prisoners' aid societies,
employment bureaus, immigrant aid societies, flower missions,
Americanization clubs, recreation centers, housing clubs, community
nursing clubs, and scores of other organizations have sprung up. Every
large city in the United States has several hundred of these
organizations, each attacking social problems of a special type.
286. NECESSITY OF COÖRDINATION.--Specialization in social service has
been followed by the development of means of coördinating the various
specialized agencies.
That there is urgent need of such coördination has been repeatedly
called to our attention. It is still true that often the institutions
for the dependent classes within a single state pursue different
methods, and so limit their separate fields that many types of
dependents are inadequately cared for.
Among the large number of private agencies there has been a great
waste of time and energy. The fact that each society is independent of
its fellows has meant that in some fields of social service efforts
were duplicated, while other fields were neglected. Cases demanding
treatment by several agencies could not be given adequate care because
of the lack of correlation among such agencies. Beggars often imposed
upon a number of different societies by assuming different names. Each
society had its own periods of campaigning for funds, a practice which
meant an excess of tag-days and campaigns and a waste of time and
energy on the part of social workers.
287. COÖRDINATION OF PUBLIC INSTITUTIONS.--The coördination of public
institutions for the dependent and defective classes proceeded rapidly
after 1880. At present the situation in the various states is somewhat
as follows:
The actual administration of local institutions is generally in the
hands of the town or county authorities. Large cities, however, often
have a system of institutional relief separate from that of the county
in which they are located. In many states the local authorities are
subject to some measure of central supervision by a state board, which
is called by various names. In most cases this is merely an advisory
board with power to inspect state institutions, and to make
recommendations to the governor or state legislature. More recently,
there is a tendency to go still further, and to reorganize and
consolidate the various state institutions so as to bring them
directly under the control of a state board or commission. In several
states the board is already one of control, that is to say, it has the
power not only to inspect the various institutions of the state, but
also the power to appoint their superintendents, and, in general, to
administer the institutional relief of the state.
288. COÖRDINATION OF PRIVATE AGENCIES.--The movement to coördinate
social service agencies of a private nature has been relatively slow
and unsatisfactory. This has been due, partly to the large number of
societies involved, and partly to the lack of any centralized
authority to supervise such organizations. In some large cities there
has been a considerable degree of consolidation among societies which
are purely charitable, but among the large number of social service
organizations which are not purely charitable, the coördinating
process has not gone beyond the functional stage. In this stage the
various social service agencies of a city remain separate and
distinct, but may become members of a council or federation which
serves to coördinate their various functions. [Footnote: In this
functional coördination the "consolidated" or "united" charities of
the city generally appear as a single organization.]
The aim of this functional coördination is to secure the greatest
degree of coöperation possible without the actual amalgamation of the
coöperating agencies. Imposition by beggars is unlikely, because a
clearing house of information keeps the various agencies informed as
to the work of one another. By periodic reference to a centralized
system of card indices, different societies may keep informed to what
types of social work are being duplicated, and as to which lines of
effort are being neglected. Where the social service agencies of a
city are thus coördinated, an applicant applies to the central agency
and is then directed to the organization best suited to meet his
needs. Such coördinating agencies stress the necessity of scientific
work which will aid in the adjustment of personal relations and help
secure the maximum of result with the minimum of expenditure.
289. THE NEIGHBORHOOD OF THE FUTURE.--The small, stable, and
relatively unprogressive neighborhood of the early European period has
disappeared before the important economic, social, and political
changes of the last five centuries. The typical neighborhood of modern
times is larger, more inclined to be made up of transient and
dissimilar types of people, and more impersonal. It is more
progressive, but more likely to hold hazards for the average
individual. The whole period since the Industrial Revolution has been
one of neighborhood readjustment, of which many aspects of the
problems of crime, the family, and dependency are phases. The new type
of neighborhood has probably come to stay, but there are indications
that life in the community of the future will prove less and less
hazardous. The development of professional social service, growing out
of the charity movement, but now embracing community work of every
kind, will probably lessen the evils of the modern neighborhood, and
retain its desirable features.
QUESTIONS ON THE TEXT
1. Describe the character of the medieval neighborhood.
2. What factors contributed to the breakdown of the medieval
neighborhood?
3. What effect did the Industrial Revolution have upon the
neighborhood?
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 the
treatment 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 agencies
have become highly specialized?
15. What may be said as to the character of the neighborhood of the
future?
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_, chapter
xiv.
5. Warner, _American Charities_, revised edition, chapters iii and
xxii.
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 Charity
Organization 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, page
154.)
12. What is the great aim of social service? (Devine, _Misery and its
Causes_, page 235.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Make a study of your neighborhood with regard to some or all of the
following points: (a) Increase in population (b) Changes in the racial
type of the population (c) Changes in the occupational tendencies of
the population (d) Changes in the spirit of neighborliness (e) Changes
in the administration of relief to dependents.
2. Study the causes of dependency in your community with regard to the
influence of economic, social, personal and political factors. (For
this information, interview local social workers.)
3. Study an actual charity case, and make a diagram or sketch showing
the number of factors involved.
4. Make a visit to an almshouse (sometimes called the poorhouse), and
report to the class upon conditions there.
5. List and classify the types of institutions which care for
dependents in your state.
6. The extent to which institutions for the dependent have been
coördinated in your state.
7. Classify the agencies which are performing some type of
professional social service in your community.
8. Interview a local social worker with regard to his or her ideals of
social service. (Compare the result with the ideals set forth in
Section 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 of
Charity_, 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, _Introduction
to the Study of the Dependent, Defective and Delinquent Classes_, part
ii, chapter viii.)
20. Organization of charity in England. (Henderson, _Introduction to
the Study of the Dependent_, etc., chapter iv.)
21. Organization of charity in France. (Henderson, _Introduction to
the Study of the Dependent_, etc., chapter ix.)
22. Organization of charity in Holland. (Henderson, _Introduction to
the Study of the Dependent_, etc., chapter v.)
23. Organization of charity in Germany. (Henderson, _Introduction to
the 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 the
dependent classes an accurate guide to the extent of dependency
throughout the state or nation?
27. Should all institutions for the dependent classes be placed under
the direct control of the state authorities?
28. Should the state authorities attempt to administer relief to
dependents who remain in their homes?
29. Should the giving of alms by individuals be abandoned in favor of
the practice of treating dependency entirely through professional or
official 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 and
most basic industry. Almost half of our people are found in the rural
districts, most of them subsisting directly upon the products of farm,
forest, and range. Directly or indirectly our cities are largely
dependent upon the country. The foodstuffs consumed in cities, as well
as the vast quantities of raw materials used by our manufacturing
industries, come largely from the rural districts. To some extent even
our urban population is recruited from the ranks of the country folk.
Altogether, American rural life is a matter of vital concern to the
nation. "Our civilization rests at bottom," Theodore Roosevelt once
said, "upon the wholesomeness, the attractiveness, and the
completeness, as well as the prosperity, of life in the country."
291. NATURE OF THE RURLAL PROBLEM.--Contrary to popular belief, the
rural problem arises not so much from the actual degeneration of rural
society, as from the fact that many rural districts have failed to
progress as rapidly as have urban communities. Compared with his
predecessor of a century ago, the farmer of to-day is better fed,
better clothed and housed, and better able to secure adequate
education and recreation. At the same time the relatively greater
advances which urban communities have made in economic and social
activities render the improvement of rural life highly desirable. The
specific problem of rural life is to develop in the country economic
and social institutions which are especially adapted to the farmer's
needs. Not until this is done shall we be able to maintain on our
farms a class of people who can make the maximum contribution to
American life in all of its phases.
292. THE RURAL PROBLEM IS OF RECENT ORIGIN.--The most spectacular
development in American economic life has been the introduction and
growth of the factory system. Commerce and manufactures were important
during even the colonial period, and during the first half century of
our national history our dominant economic interest was the fostering
of manufacturing, domestic trade, and transportation. With the
development of manufacturing came the growth of the cities, and with
the growth of the cities added attention was called to immigration,
crime, health, and related social problems. Farm life, so familiar and
apparently so healthful, was not thought of as constituting a national
problem until late in the nineteenth century.
293. THE CITYWARD DRIFT.--A half century ago more than three fourths
of our population was rural; to-day less than half of the people of
the United States live in the country. Both urban and rural districts
have been steadily increasing in population since the opening of the
nineteenth century, but since 1900 the city population has increased
three times as fast as has the rural population. One reason for this
more rapid growth of the cities is that since the eighties the
majority of our immigrants have flocked to the cities rather than to
the rural districts. Another reason, however, is that the country
people have been drifting to the towns and cities. This cityward drift
has an important bearing upon the character of rural life.
294. REASONS FOR THE CITYWARD DRIFT.--A number of factors explain the
tendency of rural people to move to the cities. The perfection and
wider use of farm machinery have decreased the need for farm laborers,
and the excess laborers have gone to the towns and cities. The fact
that urban industries offer shorter hours, better pay, and cleaner
work than does farming has attracted many young country people. The
isolation of farm life and its frequent lack of comforts have impelled
many country dwellers to move to the cities. Some country people have
gone to the city in order to be near schools and churches, and in
order to have access to competent doctors and well-equipped hospitals.
The craving for a more fully developed social life than many rural
districts afford, has been an additional cause of the cityward drift.
Unfortunately, the glamour of urban life, with its spectacles and its
artificial pleasures, has also been a factor in the movement away from
the country.
295. WHEREIN THE CITYWARD DRIFT IS DESIRABLE.--In some respects the
cityward drift is a desirable development. When laborers who are no
longer needed on the farms move cityward, the cityward drift may have
the beneficial effect of removing such laborers to where they can find
employment. It should also be remembered that successful rural life
requires qualities which may be lacking in many individuals born and
raised in the country. In so far as the cityward drift is composed of
such individuals, it may be a helpful movement, since individuals
unsuited to rural life may find themselves adapted to some type of
urban life. When unneeded and unhelpful individuals are removed from
the country, the rural population may be more efficient and more
prosperous, even though relatively more sparse.
296. WHEREIN THE CITYWARD DRIFT IS UNDESIRABLE.--In so far as the
cityward drift brings to the city individuals unsuited to urban
conditions, the movement away from the country may be undesirable. It
is certainly undesirable when the individuals in question are really
suited to rural life. The tendency of young people to move to the
cities may ultimately deprive the country of its natural leaders.
Certainly the colleges and factories of the cities often drain the
country of its most able and ambitious boys and girls. The cityward
migration of such persons may strengthen the urban population, but it
weakens rural society and retards the progress of rural institutions.
297. STATUS OF THE "BACK TO THE LAND" MOVEMENT.--Some reformers have
sought to offset the cityward drift by an artificial "back to the
land" movement. In so far as it would bring to the country persons
really able to contribute to rural life, this movement is a desirable
one. In so far as it would bring to the country persons unprepared or
unable to adapt themselves to rural conditions, such a movement is
injurious. On the basis of the data now available, we are warranted in
concluding that the "back to the land" movement is founded upon
sentiment and caprice rather than upon sound principles. It attacks
the rural problem at the wrong end. If the natural leaders of the
country 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 and
girls will prefer it to city life. The chief question before us is
this: How can the country be made so attractive that individuals
interested in, and suited to, rural life may be encouraged to lend
themselves to its fullest development? Let us see what is being done
toward answering this question.
298. HOW THE FEDERAL GOVERNMENT IS HELPING TO MAKE RURAL LIFE
ATTRACTIVE.--The material prosperity of the American farmer is due, in
considerable part, to the activities of the Federal government. For
more than a half century the Department of Agriculture has
systematically encouraged various phases of agricultural industry. The
Department conducts investigations and experiments designed to give
farmers helpful information concerning soils, grains, fruits, and live
stock. It distributes seeds gratuitously, and attempts to encourage
scientific methods among farmers. The Department issues a Year-book, a
Monthly Weather Review, a Crop Reporter, and a series of Farmers'
Bulletins. Among the more important subdivisions of the department are
the bureau of animal industry, the bureau of soils, the bureau of
markets, and the office of farm management. The work of the Department
of Agriculture is ably supplemented by the work of the Reclamation
Bureau, 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 facilities
among farmers resulted in 1916 in the passage of the Federal Farm Loan
Act. By the terms of this act, the United States is divided into
twelve districts, in each of which a Federal land bank is established.
A Federal Farm Loan Board has general charge of the entire system, but
each Farm Loan Bank is allowed a large measure of freedom in its own
district in the organization of local Farm Loan Associations. A local
association is made up of a number of farm owners, or persons about to
become owners, who desire to borrow money. The Bank will not deal with
the individual farmer except through the local association, but when a
farmer has been vouched for by this association, he may receive from
the Bank of his district a loan at not more than six per cent
interest. The Bank authorizes loans for the purchase or improvement of
land, for the purchase of live stock, and for the erection of farm
buildings. Loans must be secured by first mortgages not exceeding in
amount fifty per cent of the assessed value of the land and twenty per
cent of the value of the improvements thereon pledged as security.
Loans may run from five to forty years, and provision is made for the
gradual payment, in small sums, of both principal and interest.
300. MARKETING NEEDS OF THE FARMER.--A problem vitally affecting not
only the farmer but the urban consumer as well, has to do with the
marketing of farm produce. The price of farm produce often doubles or
trebles between the farm and the urban kitchen. This is largely
because of a cumbersome marketing system and an overabundance of
middlemen. Often the farmer gets entirely too little for his produce,
while the city housewife pays too much for it. If the farmer is to
secure a larger return for his labor, and if the cost of foodstuffs in
cities is to be reduced, we must devise more efficient methods of
marketing farm produce.
There is a general agreement among experts that in the marketing of
farm produce there ought to be some method of securing the coöperation
of farmer, urban consumer, and government. The further improvement of
country roads, together with the development of trolleys, motor
trucking and other means of farm-to-city transport would reduce
haulage charges. The number of public markets in cities should be
increased, so that farm produce might be sold to consumers without the
interference of unnecessary middlemen. The grading and standardization
of farm products would also facilitate sale by making it unnecessary
for prospective purchasers minutely to examine goods offered by the
farmers. In some cases farmers might advantageously sell their produce
directly to urban consumers. The coöperative marketing of farm
produce, 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 regulation
of commission dealers. Many farmers commonly ship their produce to
commission dealers in the city. These dealers are supposed to sell
this produce and to return to the farmer the money thus secured, minus
a small commission. In many instances these middlemen return to the
farmer smaller sums than market conditions entitle the farmer to. At
the same time, commission dealers often add an excessive amount to the
price which they in turn ask of retailers and consumers. In a few
states commission dealers handling farm produce must now be licensed.
They are obliged to keep records which will enable an inspector to
tell whether or not they have made false returns to farmers concerning
the condition of goods on arrival, the time at which sold, and the
price secured. A dealer convicted of dishonest methods loses his
license. The future should see an extension of this licensing system.
301. OTHER ECONOMIC NEEDS OF THE FARMER.--The economic position of the
farmer has been materially strengthened within the last forty years,
yet much remains to be done before farming may be considered an
altogether satisfactory and attractive occupation. Tenancy in rural
districts needs to be studied carefully. Tenancy is not necessarily an
evil, especially where it is a step toward ownership, but its rapid
increase in this country has caused many serious problems to arise.
From both the economic and the social point of view it is desirable
that farmers own their land. Tenants have no permanent interest in the
upkeep of the farm or in the rural community. Where tenancy is
widespread, land and buildings deteriorate, and the development of
rural institutions is slow.
Machinery is shortening the hours of labor for the farmer, and
scientific farming is increasing his efficiency; nevertheless, in most
sections of the country rural life still means long hours of hard
labor for small returns. Many farmers still work ten hours a day in
winter, twelve in summer, and from thirteen to fifteen in the harvest
season. Despite this sustained effort, the perishable character of his
product, the uncertainty of weather conditions, and his dependence
upon commission dealers, too often jeopardize the returns to the
farmer.
302. RURAL HEALTH.--We have noticed that in some cases people have
moved to the city because in the country doctors tend to be both
scarce and poorly trained, while frequently hospitals are
inaccessible.
Recently a number of influences are counteracting this relative
backwardness. The isolation of the rural dweller is disappearing
before the automobile and the telephone. In many sections able doctors
are increasingly plentiful. In most rural districts which are near
large cities, there is now an efficient system of visiting nurses,
free clinics, and health bulletins. Health campaigns are spreading the
fundamental principles of sanitation into many of the outlying
districts also.
But these measures, while helpful, are only a beginning. In the more
isolated rural sections especially, ignorance of sanitary methods is
still a serious evil. Many rural dwellers still rely upon traditional
but ineffective remedies for common complaints. Quacks having nostrums
and injurious patent medicines to sell often prey upon rural
communities in which there is no adequate provision for doctors,
nurses, and hospitals. Rural diet is often so heavy as to encourage
stomach disorders. Farmhouses are in many cases poorly ventilated in
summer and overheated in winter. Stables and stock pens are invariably
so close to the farmhouse as to render difficult the protection of the
dwelling against flies and mosquitoes.
303. THE RURAL SCHOOL.--The chief educational institution in rural
districts has long been the small district school, inadequately
supported and often inefficiently conducted.
But recently rural education has shown many signs of improvement. In
most sections of the country the development of farm machinery has so
reduced the amount of manual labor on the farm that rural children are
enabled to remain in school for a longer period than formerly. The
district school is in many cases being supplanted by the consolidated
school. Under the consolidation plan, a single large and well-equipped
school-house takes the place of a number of separate, small schools,
indifferently equipped. When consolidation is accompanied by improved
means of transporting children to school, the advantages of the plan
are numerous. Because consolidation is a more economical arrangement
than the old district plan, it allows larger salaries to be offered.
This in turn allows the rural school to secure a higher grade of
teacher. The trained educator is also attracted by the fact that the
consolidation of rural schools allows curricula to be standardized and
enlarged. Scientific agriculture and allied subjects are slowly
finding their way into the rural grade school. The rural high school
is beginning to appear.
In some sections of the country, on the other hand, the rural school
is still in an unsatisfactory condition. In a number of states the
rural school needs a more intelligent and consistent support from the
taxpayers, in order that better teachers, more and better
schoolhouses, and better working equipment may be provided. In many
sections of the country there is very little understanding of the
advantages of school consolidation and the necessity of more adequate
rural education. It is desirable that rural schools be more closely
correlated with the admirable work being done by experiment stations
and agricultural colleges. The agricultural press might well coöperate
with the rural schools in attacking the problems of country life.
Without doubt the rural school curriculum should place more emphasis
upon practical agriculture and other subjects which will demonstrate
the dignity and attractiveness of rural life. Finally, it is desirable
that an increasing use be made of the schoolhouse as a social center.
304. THE RURAL CHURCH.--The rural church, though an older institution
than the rural school, is advancing less rapidly. In many sections the
cityward drift has drained the able ministers to the city, leaving
inferior men to carry on the work of the rural church. Other rural
sections have never had the benefit of an able clergy. In every part
of the country it often happens that country ministers are not only
inadequately 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 districts
are overchurched, and there is great need of some such consolidation
as has been developed among rural schools. This development would so
decrease the number of ministers needed that higher salaries could be
offered. This, in turn, would attract more highly trained ministers to
the country. It is also desirable that rural ministers be trained to a
keener appreciation of the economic and social problems of the
country, with a view to making religion a practical help in solving
the problems of everyday life. An efficient and vitalized church could
advantageously be used as a focal point for the development of every
phase of rural community life.
305. ISOLATION THE MENACE OF RURAL LIFE.--Isolation may be said to be
the menace of rural life, as congestion is the menace of urban life.
In many out-of-the-way rural districts isolation has resulted in moral
inertia and intellectual dullness. Isolation has weighed particularly
hard upon the farmer's wife. Often she is called upon, not only to
rear a large family, but to cook and keep house for hired men, raise
poultry and garden stuff, and even to help in the fields during the
harvest season. In spite of this deadening routine, she has had fewer
chances than the farmer to go to town, to meet people, or otherwise to
secure a share of social life.
306. COMMUNITY SPIRIT IN THE COUNTRY.--In view of the injurious
effects of rural isolation, it is encouraging to note the beginnings
of a genuine community spirit in country districts. To a considerable
extent this development is the result of improved means of
transportation and communication. The coming of the automobile, the
telephone, and the trolley, the development of the rural free
delivery, the parcel post, and the agricultural press,--all these
factors have been important. The farmer has been enabled to share more
and more in the benefits of city life without leaving the farm. Even
more important, perhaps, improved methods of transportation and
communication have stimulated social intercourse among farmers.
Coöperation in church and school work has been encouraged. Clubs and
community centers are more practicable where farmers make use of the
automobile and the telephone. The fair and the festival are also
proving to be admirable methods of developing the coöperative spirit
in rural life.
The growing realization among students of rural life that a strong and
constructive community spirit is not only desirable but possible, is
encouraging an interest in rural problems. The development of such a
spirit must ultimately stimulate a healthy social life in the country,
with a resultant increase in health and prosperity, not only for the
farmer 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 it
undesirable?
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 and
communication 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 of
American farms? (Ely, pages 596-603.)
3. What problem arises in connection with the control of land in this
country? (Butterfield, pages 40-41.)
4. Is absentee landlordism a danger in American rural life? (Ely, page
605.)
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, page
47.)
9. Name an important defect of the rural church. (Carver, pages 343-
344.)
10. What are the chief organizations which are aiding in the
reconstruction 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 social
organizations 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 your
section.
3. Work of the Federal Farm Loan Bank of your district. If possible,
interview a farmer as to the advantages and disadvantages of the
Federal 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 in
your section. (Consult King, _Lower Living Costs in Cities_, chapter
xiii.)
II
8. Transportation in rural districts. (Vogt, _Introduction to Rural
Sociology_, chapter iv; Gillette, _Constructive Rural Sociology_,
chapter ix; Waugh, _Rural Improvement_, chapter iii.)
9. The marketing of farm products. (Weld, _The Marketing of Farm
Products; Annals_, vol. xlviii, pages 91-238; King, _Lower Living
Costs in Cities_, chapter x; Harris, _Coöperation, the Hope of the
Consumer_, chapter iii.)
10. Tenancy. (_Annals_, vol. xl, pages 29-40; Vogt, _Introduction to
Rural Sociology_, chapter v.)
11. Rural hygiene. (Ogden, _Rural Hygiene_; Gillette, _Constructive
Rural Sociology_, chapter xi; Vogt, _Introduction to Rural Sociology_,
chapters vii and viii.)
12. Immigrant communities in the country. (_Annals_, vol. xl, pages
69-80.)
13. Rural housing. (_Annals_, vol. li, pages 110-116; Waugh, _Rural
Improvement_, 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 the
Rural Problem_; Gill and Pinchot, _The Country Church_; Carney,
_Country Life and the Country School_, chapter iii; Gillette,
_Constructive Rural Sociology_, chapter xv; Vogt, _Introduction to
Rural 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, _Rural
Improvement_, 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 in
the 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 the
country.
22. Should immigrants be encouraged to settle in rural districts?
23. Advantages and disadvantages of tenancy from the standpoint of the
rural community.
24. To what extent should country people copy the social institutions
of the city rather than develop institutions of their own?
CHAPTER XXVI
EDUCATION
307. THE MEANING OF EDUCATION.--A half century ago education might
have been defined as the process of acquiring certain types of book
knowledge which contributed to the culture of the individual. More
recently the concept of education has been broadened and deepened.
Present-day education aims not only to add to the culture of the
individual, but to vitalize the community as well. Education is no
longer limited to the schoolroom, but includes all agencies and
activities which in any way help toward a fuller and more responsible
citizenship. Education is no longer confined to infancy and youth, but
is a life-long process. Our educational system no longer assumes that
the needs and capacities of all pupils are similar, but attempts so to
diversify training that each individual will be enabled to develop his
peculiar powers and to contribute to American life in the manner best
suited to his individual ability. Taken in its widest sense, education
has seven great objectives. These are health, command of fundamental
processes (such as reading, writing, and arithmetic), worthy home-
membership, vocation, citizenship, worthy use of leisure, and ethical
character. [Footnote: These objectives have been formulated by the
National Commission on the Reorganization of Secondary Education.]
308. EDUCATION AND DEMOCRACY.--Two centuries ago the education of the
masses was politically a matter of small concern, for most governments
were conducted by a narrowly restricted class. But in a democracy
education is fundamental. The idea that the masses should govern
themselves is an appealing one, but before self-government is safe a
comprehensive educational system must have made substantial inroads
upon illiteracy and ignorance. Not only must the citizen of a
democracy be individually capable, but his capacity to coöperate with
his fellows must be large. Under an undemocratic government the people
rely upon their rulers; in a democracy they must rely upon their own
joint efforts. From both an individual and a social standpoint,
therefore, democracy demands more of its educational system than does
any other form of government.
309. DEVELOPMENT OF EDUCATION IN THE UNITED STATES.--Education was an
important concern in most of the American colonies, and especially so
in New England. After 1800 the common school system was extended
rapidly, the district school passing westward with the pioneer
movement. Educational facilities continued to expand and to diversify
until at the end of the Civil War period there were more than seven
million children in the elementary schools of this country. The period
following the Civil War also saw the beginnings of the high school, a
characteristic American educational institution which arose to take
the place of the older Latin grammar schools and the private
academies. Normal schools for the training of teachers, and colleges
and universities for higher education, developed rapidly after 1880.
Today there are more than three quarters of a million teachers in the
United States, instructing more than 25,000,000 students in
institutions ranging from kindergarten and elementary schools to
colleges and universities.
310. MERITS OF OUR EDUCATIONAL SYSTEM.--The merits of our educational
system are of great significance. We are definitely committed to the
ideal of an educated citizenry. It has been the policy of the several
states to establish and maintain free public schools. School
attendance is compulsory, on full or part time, for children up to a
certain age, the age varying from state to state. No public school is
sectarian, the freedom of religious thought and action guaranteed by
the Federal Constitution having been continued into our public school
system. The public schools stimulate democratic tendencies by bringing
together large masses of children from all walks of life. Our school
system likewise has an Americanizing influence upon a large number of
foreigners because their children study in our public schools and then
carry into their homes the influence of the school. Within the last
quarter of a century our schools have greatly extended their
functions, becoming, in many cases, genuine community centers.
311. FINANCIANG THE SCHOOLS.--The substantial advances made in
American education during the last century are a cause for
congratulation. At the same time, our standards of education are
rising so rapidly that a number of educational problems are becoming
acute.
An important problem has to do with the financial support of our
rapidly expanding school system. In many states the schools are
inadequately supported by the tax payers. In some of these states the
public schools are not readily accessible to large numbers of
children, while in the schools that are accessible the equipment is
often inadequate to the demands made upon it. In many states teachers
still receive insufficient salaries.
Our schools ought not to suffer from lack of funds. Ours is the
richest country in the world, and our school system is one of the most
vital and fundamental of our institutions. Often the failure of
taxpayers properly to support the schools is due to either or both of
the following causes: First, failure to appreciate the importance of
education; second, the lack of accessible wealth as a basis of
taxation. The first objection must be met by so perfecting our
educational system that taxpayers will be convinced that money
invested in schools means large profits in the form of a more
efficient and prosperous citizenship. The second objection calls for
the reform of our taxation system.
312. CONTROL OF EDUCATION IN THE UNITED STATES.--In the United States
education is a state rather than a national function. There is no
Federal administration of schools, each state having its independent
system. Each state has a system of elementary education, and nearly
every state has a secondary or high school system. Nearly all of the
states also have state universities in which instruction is either
free or is available at a nominal charge. The public schools are
supported chiefly by local taxes and are controlled mainly by the
local authorities. In most states local outlays are supplemented, to a
greater or less degree, by state contributions. State support is
almost always accompanied by a measure of state control, though the
extent of this control varies widely among the several states.
313. THE QUESTION OF UNIFORM STANDARDS.--To what extent should there
be uniformity within our school system? We have no national system of
education, and the lack of coördination between the educational
systems of the several states has many undesirable features.
Educational standards vary widely from state to state, and often from
county to county within the same state. The confusion growing out of
this situation has given rise to the demand for the systematization or
standardization of our school facilities.
The question is a difficult one. Most authorities believe that
education ought not to be centralized under the Federal government,
but ought, rather, to remain a state function. But even though it is
not desirable to allow the Federal government to take over the chief
educational powers of the state, it is believed by many that some
national agency might render valuable service in coördinating the
educational programs of the several states. At present many educators
feel that the Federal government should insist upon minimum standards
in education in the various states of the Union.
Standardization within each state is considered desirable by most
authorities. All of the educational facilities of a given commonwealth
probably ought to be coördinated under some supervising state agency.
The administrative ideal in state education is so to systematize the
schools of the state that they will be bound together by a common
purpose, guided by the same set of established principles, and
directed toward the same social ends.
314. SCHOOL ATTENDANCE.--A serious defect of our educational system
arises in connection with school attendance. In many states the school
attendance laws are laxly enforced. It is claimed that at no one time
is more than three fourths of our school population enrolled in the
schools. Of those who do comply with the school attendance laws, there
is a considerable percentage which cannot acquire an adequate
education within the limits of the compulsory school period. Only
about one third of the pupils who enter the first year of the
elementary school reach the four-year high school, and only about one
in nine is graduated. Of those who enter high school, about one third
leave before the beginning of the second year, about one half are gone
before the beginning of the third year, and fewer than one third are
graduated.
Within the last decade there has been a marked tendency among the
several states to enforce school attendance laws more strictly. No
less encouraging is the growing belief among educators that the school
attendance period ought so to be adjusted that every child will be
guaranteed the working essentials of an education. There is grave
doubt as to the wisdom of raising the minimum age at which children
may withdraw from school, but at least greater efforts ought to be
made to keep children in school at least for part-time schooling
beyond the present compulsory period. As will be pointed out
presently, much is already being done in this direction.
315. EDUCATION AS PREPARATION FOR DAILIY LIFE.--It is sometimes said
that our educational system neglects practical activities for subjects
that have no immediate connection with the problems of daily life.
Many citizens have thoughtlessly condemned the whole program of
education because they have observed that particular schools have
allowed pupils to go forth with a fund of miscellaneous knowledge
which neither helps them to get a better living, nor aids them in
performing the duties of citizenship. On the basis of these and allied
considerations, there is a growing demand that education be made more
"practical."
There is much to be said for and against this attitude. Some
enthusiasts are apparently carrying the demand for "practical"
education too far. The growing importance in our industrial life of
efficiency and practical training should not blind us to the fact that
education is cultural as well as occupational or vocational. The
education of an individual is not estimated alone by the degree to
which he succeeds in practical affairs, but as well by the extent to
which he shows evidence of training in the appreciation of moral,
artistic, and literary values. It is sometimes difficult to see that
the study of literature, ancient languages, and similar subjects is
preparation for life, and yet wise training in these fields may prove
as important as studies which aid more directly and immediately in
getting a living.
On the other hand, our educational system must take note of the
growing importance of industrial activities. Since education is
preparation for life, the school must accommodate itself to the
changes which are now taking place in our economic and social
organization. As modern society becomes more complex, more tinged with
industrial elements, more a matter of coöperation and interdependence,
education must become more highly evolved, more attentive to
vocational needs, and more emphatic in the stress which it lays upon
the actual duties of citizenship.
The more complex the needs of daily life, therefore, the greater the
necessity of shifting emphasis in education. But in thus shifting the
emphasis in education we must be careful not to disturb the balance
between cultural and "practical" subjects. To discriminate between
what should be taught and what should be omitted from the curriculum,
to retain the finest elements of our cultural studies, but at the same
time to fit our citizens to meet the demands of office, shop, and
factory,--these are the tasks of the educator.
316. VOCATIONAL EDUCATION.--Vocational training is one of the most
significant developments in modern education. This type of education
is designed to train the young person to earn a good living in that
branch of work for which he seems best fitted. Some of the supporters
of vocational education believe that this specialized form of training
ought to be commenced very early and in connection with the regular
curriculum. Others think that vocational education should not be
attempted until the child has been given enough generalized training
to enable him properly to perform the fundamental duties of
citizenship.
But whatever its relation to the curriculum, vocational education is
of great significance. If combined with vocational guidance it not
only prevents the boy or girl from aimlessly drifting into an
unskilled occupation, but it singles out for special attention
children who show special aptitude for particular trades and
professions. Vocational education for the blind, the deaf, the
crippled, and the otherwise disabled is social service of the finest
and most constructive type.
317. FEDERAL ENCOURAGEMENT OF VOCATIONAL EDUCATION.--In February,
1917, Congress passed the Smith-Hughes Act, establishing a Federal
Board for Vocational Education. This board promotes vocational
education in coöperation with the several states, and administers the
Federal aid granted to the states under the Act. Each state accepting
the provisions of the Act must provide a state board to control a
system of vocational schools. Evening, part-time, and continuation
schools offer instruction in agriculture, industry, commerce,
transportation, and the professions. Each state must also agree to
appropriate, either through the state or locally, an amount of money
for teachers' salaries, equivalent to the sum received from the
Federal board. Such states must also agree to provide proper buildings
and meet the running expenses of the system. In the first year under
this Act, the Federal appropriations amounted to more than a million
and a half dollars. This sum is to be increased annually until the
year 1925-1926, when the states will receive $7,000,000 from the
Federal 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 certain
classes of young people between nine o'clock in the morning and three
or 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 of
people. Adult immigrants were barred from the elementary public
schools. Persons desiring educational guidance in special fields often
found that the school offered them no help. Cripples, men and women
employed in the daytime, and other individuals who found it impossible
or inconvenient to attend school during the conventional time limits,
were restricted in educational opportunity. Many boys and girls who
drop out of school because of the necessity of going to work, do so
before their education has been completed. For most of these classes,
the inability to take advantage of the regular school term has meant
the denial of adequate education.
319. WIDER USE OF THE SCHOOL PLANT.--Recently the "wider use of the
school plant" movement is helping these classes to secure or continue
their education. For unassimilated immigrants, day and evening courses
in citizenship are now provided in many cities and towns. In many
cities vacation schools have been established for the convenience of
children who have failed in their studies, or who are able and willing
to make unusual progress in various subjects. For those who work by
day there is often a chance to go to school by night. For those who
find it inexpedient to leave their homes, there are, in many places,
travelling libraries and correspondence courses. In some western
states the farmer now has an opportunity of taking extension courses
from the State university during those seasons in which his work is
lightest. For pupils who are under the necessity of partially or
entirely supporting themselves, some cities now have part-time or all-
around-the-year schools.
320. THE SCHOOL AS A SOCIAL CENTER.--Closely associated with the
movement to extend school facilities to those who would ordinarily be
debarred from them, is the movement toward making the school a social
center. Many city and some rural schools now provide free to the
general public lectures on science, art, literature, and business.
Moving pictures, dramatics, and other forms of entertainment are
becoming a regular feature of this type of school work. In many
schools the gymnasiums are available to the public under reasonable
restrictions. Folk singing and dancing are being encouraged in
numerous schools. Schoolrooms devoted by day to regular school courses
are in many places being used during the evening for the discussion of
public questions. In these and other ways the school is becoming a
center of life for the community. It is extending into the homes of
the people and is becoming the instrument of the community rather than
of a particular group.
321. EDUCATION AND SOCIAL PROGRESS.--We may sum up the problems so far
discussed in this text by noting that their solution calls for three
different types of treatment.
First, we must strike at the root of poverty by giving every
individual just what he earns, by making it possible for every
individual 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 of
correcting and lessening the social defects of American democracy.
Third, education must be relied upon to render the individual able and
willing to do his duty toward himself and his country. The boys and
girls of to-day are the voters and home-makers of to-morrow, and the
responsibility of preparing those boys and girls for the efficient
conduct of community life rests almost entirely upon the school. Thus
education is one of the most basic factors in social progress. Neither
a reorganized economic system, nor the most carefully drawn laws on
social questions will solve the problems of American democracy until
the individual citizen is trained to a proper appreciation of his
responsibilities 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 the
schools.
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 all
of the following:
2. Cubberley, _Changing Conceptions of Education_, all.
3. Guitteau, _Government and Politics in the United States_, chapter
xviii.
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 in
the 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. (Guitteau
pages 177-180.)
6. What are the chief sources of school revenues? (Guitteau, pages
182-183.)
7. What has been the effect of immigration upon our educational
system? (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 state
constitution 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 the
American Citizen_; Baldwin, _The Relation of Education to
Citizenship_.)
9. The beginnings of American education. (Cubberley, _Public Education
in the United States_, chapter ii.)
10. The reorganization of elementary education. (Cubberley, _Public
Education 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 in
the 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 of
To-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, _Handicrafts
for the Handicapped_.)
18. Education for efficiency. (Eliot, _Education for Efficiency_;
Davenport, _Education for Efficiency_.)
19. Vocational education. (Taylor, _A Handbook of Vocational
Guidance_; 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 Modern
Social Problems_, chapter xvi.)
FOR CLASSROOM DISCUSSION
23. Do grammar school graduates who fail to enter high school stop
their education at this point because of poverty, because of the
attraction 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 education
be begun?
27 How are ancient languages, ancient history and the fine arts
helpful in daily life?
28. The question of a more intensive use of your school building as a
social 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 individuals
carry on business primarily for their own ends, the economic
activities of men affect not only themselves, but the community as
well. If every individual voluntarily confined his attention to those
forms of business which strengthened the community as well as adding
to his own prosperity, there would be little need for laws regulating
the conduct of business. But because experience has shown that some
persons will seek to benefit themselves in ways that react to the
injury of the community, it becomes necessary for law to adjust
private and public interests. A community cannot remain indifferent to
the economic activities of its citizens. Public interest in business
is a fundamental necessity, if the community is to be safeguarded
against the abuses of free enterprise.
323. NATURE OF PUBLIC INTEREST IN BUSINESS.--In general, the object of
laws regulating business is either to encourage helpful business
methods, or to discourage harmful business methods. A good deal of
legislation has been designed positively to encourage helpful business
methods, yet it remains true that the most significant of our
industrial laws have been aimed primarily at the discouragement of
harmful business. A fundamental American ideal is to insure to the
individual as much freedom of action as is consistent with the public
interest. Thus we believe that if harmful business is controlled or
suppressed, private initiative may be trusted to develop helpful
business methods, without the aid of fostering legislation. In this
and the following chapter, therefore, we may confine our attention to
legislation designed to suppress harmful business methods.
324. THE NATURE OF MONOPOLY.--We may begin the discussion by inquiring
into the nature and significance of monopoly.
Under openly competitive conditions the free play of supply and demand
between a number of producers and a number of prospective consumers
fixes the price of a commodity. In such cases consumers are protected
against exorbitant prices by the fact that rival producers will
underbid each other in the effort to sell their goods.
But if the supply of a good, say wheat, is not in the hands of several
rival producers, but is under the control of a unified group of
persons, competition between the owners of the wheat is suppressed
sufficiently to enable this unified group more nearly to dictate the
price for which wheat shall sell. In such a case a monopoly is said to
exist. Complete control of the supply of a commodity is rare, even for
short periods, but modern business offers many instances of
enterprises which are more or less monopolistic in character.
The essential danger of monopoly is that those who have secured
control of the available supply of a commodity will use that control
to benefit themselves at the expense of the public. By combining their
individual businesses, producers who were formerly rivals may secure
the chief advantage of large-scale management. That is to say, the
cost of production per unit may be decreased, because several combined
plants might be operated more economically than several independent
concerns. If the cost of production _is_ decreased the combining
producers can afford to lower the price of their product. But if they
are practically in control of the entire supply, they will not lower
the price unless it serves their interests to do so. Indeed it is more
likely that they will take advantage of their monopoly to raise the
price.
325. TYPES OF MONOPOLY.--Monopolies are variously classified, but for
our purpose they may be called either _natural_ or _unnatural_.
A _natural_ monopoly may exist where, by the very nature of the
business, competition is either impossible or socially undesirable.
Examples of this type of monopoly are gas and water works, street
railways, steam railways, and similar industries. These will be
discussed in the next chapter.
Where an _unnatural_ monopoly exists, it is not because the essential
character of the business renders it unfit for the competitive system,
but because competition has been artificially suppressed. The
traditional 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 many
industries was so intense as to lead to "cutthroat" competition and a
consequent reduction in profits. For the purpose of securing the
advantages of monopoly, many previously competing businesses combined.
In 1882 John D. Rockefeller organized the Standard Oil Company, the
first trust in this country. The plan drawn up by Mr. Rockefeller
provided that the owners of a number of oil refineries should place
their stock in the hands of a board of trustees. In exchange for this
stock, the owners received trust certificates on which they were paid
dividends. Having control of the stock, the trustees were enabled to
manage the combining corporations as one concern, thus maintaining a
unified 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 adopted
it. After 1890 the original trust device was forbidden by statute, and
the _trust proper_ declined in importance. But there continued to be a
large number of industrial combinations which, under slightly
different forms, have secured all of the advantages of the original
trust. In some cases previously competing corporations have actually
amalgamated; in still other cases, combining concerns have secured the
advantages of monopoly by forming a holding company. A holding company
is a corporation which is created for the express purpose of "holding"
or controlling stock in several other corporations. This the holding
company does by buying a sufficient amount of the stock of the
combining concerns to insure unity of management and control. Since
the holding company and similar devices secure the chief advantages of
the original trust, the word "trust" is now used to designate any
closely knit combination which has monopolistic advantages.
328. GROWTH OF THE TRUST MOVEMENT.--The trust movement developed
rapidly after 1882. There were important combinations in the oil, tin,
sugar, steel, tobacco, paper, and other industries. By 1898 there had
been formed some eighty trusts, with a total capitalization of about
$1,000,000,000. At the beginning of 1904 the number of trusts exceeded
three hundred, while their combined capital totaled more than
$5,000,000,000. The largest single trust was the United States Steel
Corporation, which was capitalized at almost a billion and a half
dollars. At the beginning of 1911, in which year the Supreme Court of
the United States ordered two important trusts to dissolve, the
combined capital of the trusts was probably in excess of
$6,000,000,000.
329. ABUSE OF POWER BY THE TRUSTS.--Trusts have often abused their
monopolistic powers. They have often used their wealth to corrupt
legislatures and to attempt to influence even the courts, in the
effort to prevent laws and court decisions from restricting their
monopoly. The corruption of railway corporations and of political
parties has been partly due to the evil influence of the trusts.
Trusts have often crushed out independent concerns that endeavored to
compete with them. This has been accomplished, partly by inducing
railroads to discriminate against independent concerns and in favor of
the trusts, partly by cutting prices in competitive markets until
independent concerns were crushed out, and partly by the use of
bribes, threats, and other unfair methods. After competition had been
suppressed, the trusts took advantage of their monopoly to raise
prices on their products, thus imposing a heavy burden upon the
public.
330. THE SHERMAN ANTI-TRUST ACT. (1890.)--During the eighties a number
of states attempted to control the trust movement. But the Federal
government has exclusive jurisdiction over interstate business, and
for this reason the action of the states was limited to the control of
the relatively unimportant trust business lying entirely within their
respective borders. The fact that an increasing proportion of trust
business was interstate in character stimulated interest in Federal
anti-trust legislation, and in 1890 the Sherman Anti-trust Act was
passed. This Act declared illegal "every contract, combination in the
form of trust or otherwise, or conspiracy, in restraint of trade or
commerce among the several States, or with foreign nations."
331. FAILURE OF THE SHERMAN ACT.--For more than twenty years after its
passage, 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 the
lukewarm attitude of the courts rendered difficult the administration
of the law. After 1911 the courts held that the restraint of trade was
illegal if "unreasonable," but few juries could be found that could
agree upon the difference between a "reasonable" and an "unreasonable"
restraint of trade. Lastly, combinations which had been organized
under the original trust plan were not disheartened by court decrees
ordering them to dissolve, but reorganized under some device which was
practically as effective as the trust plan, but which did not
technically violate the Sherman act.
332. FURTHER LEGISLATION IN 1914.--Finally in 1911 the government
succeeded in dissolving the Standard Oil Company and the American
Tobacco Company, two of the largest trusts in the country. This
success encouraged the Department of Justice to institute other suits,
and stimulated such general interest in the trust problem that in 1914
Congress passed two new Anti-trust Acts. These were the Clayton Act
and the Federal Trade Commission Act. The general effect of these laws
was to strengthen anti-trust legislation by correcting some of the
fundamental defects of the Sherman Act, and by still further extending
the power of the Federal government over monopolistic combinations.
333. The Clayton Act of 1914.--The Clayton Act forbids "unjustifiable
discriminations in the prices charged to different persons," and also
prohibits the lease or sale of goods made with the understanding that
the lessee or purchaser shall not patronize competing concerns. The
Act specifies a number of other practices which constitute
unreasonable restraints of trade. Somewhat complicated limitations are
imposed upon interlocking directorates, by which is meant the practice
of individuals being on the board of directors of different
corporations. [FOOTNOTE: The danger of the interlocking directorate,
of course, is that individuals who are directors in two or more
corporations may attempt to suppress competition between those
corporations. This may lead to monopoly.] The Act likewise forbids the
acquisition by one corporation of stock in another corporation when
the effect may be "to substantially lessen competition" between such
corporations, or "to tend to create a monopoly."
334. THE FEDERAL TRADE COMMISSION ACT OF 1914.--The second of the two
Acts of 1914 created a Federal Trade Commission of five members,
appointed by the President. The Commission has the power to require
annual or special reports from interstate corporations in such form
and relating to such matters as it may prescribe. At the request of
the Attorney General, the Commission must investigate and report upon
any corporation alleged to be violating the anti-trust laws. The most
important power of the Commission is undoubtedly that of issuing
orders restraining the use of "unfair methods of competition in
commerce." This clause aims at prevention rather than at punishment,
and if its power is wisely used it will check monopoly in the early
stages. Most authorities claim that in this regard the work of the
Commission has already proved definitely helpful.
335. THE OUTLOOK.--Since 1911, and especially since the passage of the
two Acts of 1914, the trust situation has materially improved. The
vague and wholly inadequate powers of the old Sherman Act have been
clarified and supplemented by the more specific provisions of the
Clayton and Federal Trade Commission Acts. Fairly adequate machinery
for the investigation and prosecution of trusts is now provided. The
present laws cover not only combinations making use of the old trust
device, but also combinations employing other methods of exercising
monopoly control. The Federal Trade Commission Act provides for
publicity, so that public opinion may have a chance to enforce the
principle of fair play and open competition in business. The trust
problem in the United States is not yet solved, but the careful
control which we are now exercising over this type of organization
justifies the belief that the trust evil will become less important as
time goes on.
336. THE TRUST PROBLEM OF THE FUTURE. In connection with the matter of
making anti-trust legislation more effective, a new and pressing
problem is arising. This has to do with the necessity of
distinguishing, first, between the legitimate and the illegitimate
practices of trusts [Footnote: Large-scale combination or management
allows important economies to be practiced. Plant can be used more
advantageously, supervision is less costly, supplies can be purchased
in large quantities and hence more cheaply, etc. The securing of these
economies constitutes a legitimate feature of large-scale combination
or management.]; and second, between combinations which are
monopolistic and combinations in which there is no element of
monopoly.
We are coming to realize a fact which in Europe has long been a matter
of common knowledge, namely, that trusts are never wholly and
unqualifiedly bad. The law should not aim to destroy trusts, but
rather should attempt so to regulate their activities that their
economical features will be preserved while their harmful practices
will be suppressed. Laws should also recognize the fact that many
large-scale combinations have in them no element of monopoly, and that
such combinations should be exempted from anti-trust prosecution. In
drawing up anti-trust legislation, prohibitions and restrictions
should be as concise and as definite as possible, both in order to
facilitate the execution of the law, and in order to prevent hardships
being worked upon combinations which have consistently observed the
rules 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 have
taken 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 1890
and 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, pages
228-230; 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 monopolistic
combinations.
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 and
Control,_ pages 25-31.)
8. Forms of industrial combination. (Van Hise, _Concentration and
Control,_ pages 60-72.)
9. Text of the Sherman anti-trust act. (_Ripley, Trusts, Pools and
Corporations,_ 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 Economic
Problems,_ 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 _Trust
Problem,_ 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, _Concentration
and Control_, chapter iv.)
19. The history of some one trust, as, for example, the American Sugar
Refining Company, the United States Steel Corporation, the American
Tobacco Company, or the International Harvester Company. (Consult any
available literature.)
FOR CLASSROOM DISCUSSION
20. What is a reasonable as opposed to an unreasonable restraint of
trade?
21. How is it possible to tell when combination has resulted in
monopoly?
22. To what extent is the mere size of an industrial organization an
indication of monopoly?
23. Does monopoly always result in a higher price being asked for the
monopolized 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 as
public utilities. Public utilities include gas and electric light
works, waterworks, telephone and telegraph plants, and electric and
steam railways.
These industries are by their very nature unsuited to the competitive
system. This is chiefly because they operate under the principle of
decreasing cost, that is to say, the greater the volume of business
handled 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 be
necessary to make an initial outlay of $90,000 in plant and supplies.
With this identical plant, however, the gas works could really
manufacture gas sufficient to serve more than 100,000. If, later, the
city grows and the number of customers using gas doubles, the gas
works, 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 prohibiting
competition and of encouraging combination. Since a street or a
neighborhood can be served with water or gas more cheaply by a single
plant than by several competing plants, competing plants tend to
combine in order to secure the economies resulting from decreasing
cost and large-scale production. On the other hand, the cost of
duplicating a set of water mains or a network of street car tracks is
so prohibitive as to render competition undesirable, both from the
standpoint of the utility and from the standpoint of the public.
This natural tendency toward monopoly, together with the social
importance of public utilities, has given rise to a demand that
businesses of this type be publicly owned. The problem of public
ownership may be considered under two heads: first, the municipal
ownership of local utilities; and, second, the national ownership of
steam railroads.
A. MUNICIPAL OWNERSHIP
338. REGULATION OF LOCAL UTILITIES.--In many American cities it was
formerly the custom of the city council to confer valuable privileges
upon public service corporations on terms that did not adequately
safeguard the public interest. In making such grants, called
franchises, city councils often permitted private corporations the
free use of the streets and other public property for long periods of
time or even in perpetuity.
The abuses growing out of the careless use of the franchise granting
power have recently led to a more strict supervision of franchises to
public service corporations. In most cities, franchises are no longer
perpetual, but are limited to a definite and rather short period, say
fifty years. To an increasing extent, franchises are drawn up by
experts, so that the terms of the grant will safeguard the interests
of the public. In many states there are now public service commissions
that have the power to regulate privately owned utilities. The chief
aim of such commissions is to keep informed as to the condition of the
utilities, and to fix rates and charges which the commission considers
fair and reasonable.
339. ARGUMENTS FOR MUNICIPAL OWNERSHIP.--Those favoring municipal
ownership, as opposed to regulation, declare that the conditions
affecting rates change so rapidly that no public service commission
can fix rates fairly or promptly. Public ownership would save the cost
of regulation, in many cases a considerable item. It is maintained
that regulation is inevitably a failure, and that in view of the
social importance of public utilities, ownership is a logical and
necessary step.
Important social gains are claimed for municipal ownership. It is said
that where the plan has been tried, it has promoted civic interest and
has enlisted a higher type of public official. If all utilities were
municipally owned, state legislatures and city councils would no
longer be subjected to the danger of corruption by private
corporations seeking franchises. If utilities were owned by the
municipality, it is claimed, service and social welfare rather than
profits would become the ideal. The public plant could afford to offer
lower rates, because it would not be under the necessity of earning
high profits. Finally, service could be extended into outlying or
sparsely settled districts which are now neglected by privately owned
companies because of the high expense and small profits that would
result from such extension.
340. ARGUMENTS AGAINST MUNICIPAL OWNDERSHIP.--Other students of the
problem believe that public regulation of utilities is preferable to
municipal ownership. Those holding this view maintain that on the
whole regulation has proved satisfactory, and that ownership is
therefore unnecessary.
Rather than improving the public service by enlisting a higher type of
public official, it is maintained, municipal ownership would increase
political corruption by enlarging the number of positions which would
become the spoils of the political party in power. The periodic
political changes resulting from frequent elections in cities would
demoralize the administration of the utilities. Under our present
system of government, municipal ownership means a lack of centralized
control, a factor which would lessen administrative responsibility and
encourage inefficiency.
The opponents of municipal ownership also contend that the
inefficiency resulting from this form of control would increase the
cost of management. This increased cost would in turn necessitate
higher rates. Moreover, municipal ownership might increase enormously
the indebtedness of the municipality, since either private plants
would have to be purchased, or new plants erected at public expense.
341. EXTENT OF MUNICIPAL OWNERSHIP.--Some cities have tried municipal
ownership and have abandoned the scheme as unworkable. In some
instances this failure has been due to the inherent difficulties of
the case, in other instances the inefficiency of the city
administration has prevented success. In still other cities ownership
of various utilities has proved markedly successful.
Most American cities now own their own waterworks, and about one third
of them own their own gas or electric light plants. A few cities own
either a part or the whole of their street railways. Municipal
ownership of public utilities is still in its infancy, but the
movement is growing.
342. CONDITIONS OF MUNICIPAL OWNERSHIP.--Past experience indicates
several mistakes to be avoided in any future consideration of the
problem of municipal ownership.
The terms upon which the city purchases a utility ought not to be so
severe as to discourage the future development of new utilities by
private enterprise.
Public ownership is practicable only when the utility has passed the
experimental stage, for governmental agencies cannot effectively carry
on the experiments, nor assume the risks, so essential to the
development of a new enterprise.
Any discussion of public ownership ought to include a consideration of
social and political factors, as well as matters which are strictly
economic.
The question of municipal ownership should be decided purely on the
basis of local conditions and for particular utilities. The successful
ownership of street railways in one city does not necessarily mean
that a second city may be equally successful in operating this
utility. Nor does the successful administration of a gas works by one
city necessarily mean that the same city can effectively administer
its street railways.
B. NATIONAL OWNERSHIP OF RAILROADS
343. DEVELOPMENT OF RAILROADS IN THE UNITED STATES.--The railroad
history of the United States began when the Baltimore & Ohio was
opened to traffic in 1830, but until the middle of the century
transportation in this country was chiefly by wagon roads, rivers, and
canals. After 1850 the westward expansion and the development of
industry throughout the country greatly stimulated railway building.
Encouraged by lavish land grants and other bounties extended by both
state and Federal governments, railroad corporations flung a network
of railroads across the continent. Local roads were transformed, by
extension and consolidation, into great trunk lines embracing
thousands of miles. From 9,021 in 1850 our railway mileage increased
to 93,267 in 1880, to 193,345 in 1900, and to approximately 260,000 in
1922.
344. THE PRINCIPLE OF DECREASING COST.--While the rapid development of
American railroads has had an inestimable effect upon our national
prosperity, railway development has brought with it serious evils. In
order to understand the nature of these evils, let us notice that with
railroads, as with municipal utilities, the cost per unit of product
or service declines with an increase in the number of units furnished.
A railroad must maintain its roadbed, depots, and terminals whether
one or an hundred trains are run, and whether freight or passenger
cars run empty or full. Many of the railroad's operating expenses also
go on regardless of the volume of business. Thus the cost of handling
units of traffic declines as the volume of that traffic increases.
These circumstances influence rate-making in two ways. In the first
place, railroads can afford to accept extra traffic at a relatively
low rate because carrying extra traffic adds relatively little to the
railroad's expenses. In the second place, rates in general cannot be
definitely connected with the expense of carrying specific
commodities, hence rates are often determined on the basis of
expediency. This means that high rates are charged on valuable
commodities because those commodities can pay high rates, while low
rates are charged on cheap goods, because those goods cannot stand a
high charge. This is called "charging what the traffic will bear."
345. EVILS ATTENDING RAILROAD DEVELOPMENT.--Since many of the expenses
of the railroad go on regardless of the amount of traffic carried,
railroads are constantly searching for extra business. Competition
between railroads has tended to be very severe. Rate-wars have been
common, because of the small cost of handling extra units of traffic.
In the struggle for business, railroads once habitually offered low
rates on competitive roads or lines, and then made up for this
relatively unprofitable practice by charging high rates on non-
competitive roads. The desire for extra business, together with the
pressure exerted by trusts and other large shippers, encouraged
railroads to make rates which discriminated between products, between
localities, and even between individuals. The ruinous character of
competition often led to monopolistic combinations which proceeded to
charge the general public exorbitant rates, but which rendered poor
service.
346. EARLY STATE LEGISLATION.--During the early stages of railroad
development, the railroads were generally regarded as public
benefactors for the reason that they aided materially in the
settlement of the West. But after about 1870 the railroads began to be
accused of abusing their position. A greater degree of legal control
over the roads was demanded.
The first attempts at the regulation of railroad corporations were
made by several of the states. For fifteen years various commonwealths
tried to control the railroads through state railway commissions armed
with extensive powers. These commissions eliminated some of the more
glaring abuses of railroad combination, but for several reasons state
regulation was relatively ineffective. The states had, of course, no
authority over interstate business, and most railroad revenues were
derived from this type of business. State laws regulating railroads
were often declared unconstitutional by the courts. Lastly, powerful
railroad corporations often succeeded in bribing state legislatures to
refrain 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 to
control the railroads led to the enactment by Congress of the
Interstate Commerce Act of 1887. This Federal act created an
Interstate Commerce Commission of seven members, appointed by the
President, and charged with the enforcement of the Act. The Act also
prohibited discriminations, and forbade unjust and unreasonable
rates. It required that railroads should make rates public, and that
they should not change rates without due notice. Pooling was
forbidden, that is to say, railroads apparently competing with one
another were no longer to merge or pool their combined business with
the understanding that each was to get a previously determined share
of the joint profits. The objection to pooling was that it suppressed
competition and encouraged monopoly.
In the years that followed, however, the Interstate Commerce Act
checked railroad abuses very little. The machinery of the Act was so
defective as to render difficult the successful prosecution of
offenders. Railroad interests exerted an evil influence upon
government officials who were attempting to enforce the Act. The
administration of the law was also markedly impeded by the fact that
the courts tended to interpret the Act of 1887 in such a way as to
limit the powers of the Commission.
To a considerable extent discriminations and unnecessarily high rates
continued until after the opening of the twentieth century. Then in
1903 the Elkins Act revived some of the waning powers of the
Commission. Three years later (1906) the Hepburn Law increased the
membership of the Commission, improved its machinery, and extended and
reinforced its control over rates. In 1910 the Mann-Elkins Act
strengthened the position of the Commission in several particulars.
In spite of this additional legislation, however, the rather sorry
record of railroad regulation up to the time of the World War
repeatedly raised the question of national ownership of railroads.
348. ARGUMENTS IN FAVOR OF NATIONAL OWNERSHIP OF RAILROADS.--The
arguments in favor of national ownership of railroads are similar to
those advanced in behalf of the municipal ownership of local
utilities.
The failure of regulation, coupled with the social importance of the
railroads, is said to render ownership imperative. Government
ownership of railroads is said to have succeeded in several of the
countries of Europe, notably in Prussia.
It is believed by many that government ownership would attract a high
grade of public official. It is also thought that with the change to
public ownership the corruption of state legislatures by railroads
would cease. Since the roads would be taken out of private hands and
administered as a unit by the Federal government, discriminations and
other unfair practices would cease.
It is also held that under public ownership service rather than
profits would become the ideal. Since profits would no longer be
necessary, lower rates could be offered. Government ownership would
allow the elimination of duplicating lines in competitive areas, and
would permit the extension of new lines into areas not immediately
profitable. Thus railroads now operated solely for private gain would
become instruments of social as well as industrial progress.
349. ARGUMENTS AGAINST NATIONAL OWNERSHIP OF RAILROADS.--Opponents of
national ownership maintain that the experience of Prussia and other
European countries is no guide to railroad management in this country.
Differences in political organization between this and European
countries, for example, render unreliable the results of public
ownership in Prussia and other parts of Europe.
Many opponents of government ownership contend that the elimination of
private control would increase, rather than decrease, political
corruption. Various political interests, they say, would bring
pressure to bear in favor of low rates for their particular sections
of the country.
It is often maintained that the substitution of public for private
ownership would discourage personal initiative because public
officials would take little genuine interest in the railroads. It is
said that government administration of railroads would be marked by
waste and inefficiency. This would necessitate higher rates instead of
permitting rates to be reduced. The large initial cost of acquiring
the roads is urged against public ownership, as is the gigantic task
of administering so vast an industry.
A last important objection to public ownership is that it would cause
rates to be rigid. Rates would be fixed for relatively long periods
and by a supervisory agency, rather than automatically changing with
business conditions as under private ownership. This rigidity would
force business to adapt itself to rates, instead of allowing rates to
adapt themselves to business needs.
350. GOVERNMENT CONTROL OF RAILROADS, 1917-1920.--Shortly after our
entry into the World War, the congested condition of the railroads,
together with the urgent need for a unified transportation system, led
to a temporary abandonment of private control. On December 28, 1917,
President Wilson took over the nation's railroads under powers
conferred upon him by Congress. The roads were centralized under
Director-General McAdoo, assisted by seven regional directors who
administered the railroads in the different sections of the country.
The Act empowering the President to take over the railroads provided
that such control should not extend beyond twenty-one months after the
conclusion of the treaty of peace with Germany. But there has never
been a well-organized movement for government ownership of railroads
in this country, and when after the signing of the armistice in
November, 1918, the immediate return of the roads to private control
was demanded, there was little opposition. A number of plans proposing
various combinations of public and private control were rejected, and
on March 1, 1920, the roads were returned to their former owners.
351. RESULTS OF GOVERNMENT CONTROL DURING THE WORLD WAR.--Government
control of the nation's railroads between 1917 and 1920 resulted in a
number of important economies. Repair shops were coördinated so as to
be used more systematically and hence more economically. The
consolidation of ticket offices in cities effected a substantial
saving. The coördination of terminals allowed a more economical use of
equipment than had been possible under private control. The
unification of the various railroad systems allowed a more direct
routing of freight than would otherwise have been possible. There was
also a reduction in some unnecessarily large managerial salaries.
On the other hand, the quality of railroad service declined under
government control. The personal efficiency of many types of railroad
employees also decreased. Most important of all, there was a sharp
increase in both freight and passenger rates.
The period of war-time control was abnormal, hence the record of the
roads under government control during this period cannot be taken as
wholly indicative of what would happen under permanent government
control in peace time. But it should be noted that, on the whole, the
record 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 the
increase in rates, is at least partially explained by abnormal
conditions over which the Railroad Administration had no control. The
winter of 1917-1918 was the most rigorous in railroad history. This
circumstance, combined with the unusually heavy demands for the
transportation of war equipment, helped to demoralize the service from
the very beginning of the period of government control. For a number
of years previous to 1917 there had been an acute shortage of box cars
and other equipment, which also helps to explain the poor quality of
service furnished during the war. The labor force was demoralized by
the drafting for war service of many trained railroad employees. (It
is claimed that certain railroad officials sought to discredit
government control by hampering the administration of the roads, but
this charge cannot be proved.)
352. THE TRANSPORTATION ACT OF 1920.--Government control in war time
revealed the true status of the railroads as nothing else could. It
was seen that up to the period of the World War Federal legislation on
railroads had in some cases been too indulgent, but in other cases so
severe as to work a hardship upon the roads. To pave the way for a
fairer and more effective regulation of the nation's railroads, the
Transportation Act of 1920 was passed. At present the railroads are
privately owned, but publicly regulated by the Interstate Commerce
Commission, according to the provisions of the Interstate Commerce Act
of 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 time
all unfair discriminations are generally forbidden. But it is now
recognized that under certain conditions a discrimination may be
economically justified. Therefore, when the inability to levy a
discriminatory rate would work a hardship upon a railroad, the
Commission is authorized to suspend the rule. Pooling is likewise
generally forbidden, but here again the Commission may authorize the
practice at its discretion. Limitations are placed upon the power of
railroads to transport commodities in which they are interested as
producers.
All interstate rates are to be just and reasonable, and the Commission
is empowered to say what constitutes just and reasonable rates. In
order to prevent rate wars, the Commission is now empowered to fix
minimum as well as maximum rates. The Act of 1920 also gives the
Commission the power to establish _intra_-state rates, where such
rates unjustly discriminate against interstate or foreign commerce. An
_intra_-state rate, of course, is one which has to do only with
freight or passenger movements which begin and end within the borders
of a single state.
The Act of 1920 extended government control over the railroads in a
number of important particulars. To check certain financial abuses,
the Commission now has supervision over the issue of railroad
securities. For the purpose of increasing the social value of the
nation's railroads, the Act of 1920 instructs the Commission to plan
the consolidation of existing roads into a limited number of systems.
Another clause in the Act of 1920 provides that no railroad may
abandon lines, build new lines, or extend old ones, without the
consent of the Commission. In times of national emergency, moreover,
the Commission may direct the routing of the nation's freight, without
regard to the ownership of the lines involved. Lastly, the Act of 1920
made provision for a permanent arbitration board for the settlement of
labor disputes in the railroad industry.
354. THE OUTLOOK.--In view of the defective character of regulatory
legislation previous to 1900, government ownership of railroads did
not seem unlikely. But since the acts of 1903, 1906, and 1910, and
especially since the passage of the Transportation Act of 1920, there
has been such high promise of efficient regulation as to minimize the
movement toward government ownership. Not only are old abuses now more
likely to be remedied, but the Interstate Commerce Commission is now
empowered to relieve the roads of many undeserved burdens. Especially
is the Commission keenly appreciative of the necessity of stabilizing
the credit of the railroads. Until this is done the investing public
will have little confidence in the railroad business, and the roads
will continue to be inadequately financed.
Perhaps the greatest problem now before the Commission is to complete
the "physical valuation" of the railroads begun in 1913. This
valuation aims to discover, by investigations conducted by expert
appraisers, the actual value of all railroad property in the United
States at the present time. On the basis of this valuation the
Commission believes that it can estimate the probable amount of
invested capital which the railroads represent. After this has been
done, the Commission can calculate what rates the railroads must
charge in order to earn a fair dividend on their money. The completion
of this physical valuation is, therefore, necessary if the Interstate
Commerce Commission is to fix rates which are just and reasonable from
the standpoint of the public on the one hand, and from the standpoint
of 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 of
railroads.
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 control
of railroads.
16. Enumerate the laws under which the Interstate Commerce Commission
now 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 in
the 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 bad
politics? (King, pages 17-19.)
6. What are the legal duties of corporations controlling municipal
utilities? (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 Federal
governments during the period of railroad development? (Fetter, page
413.)
10. Distinguish between local and personal discriminations. (Fetter,
pages 416-417.)
11. Discuss the nature of the early state railroad
commissions.(Fetter, pages 420-422.)
12. In what respects was the Interstate Commerce act amended by the
legislation 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 ownership
of 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 controlled
by 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 a
municipally owned utility and report upon it.
6. Interview an official of some local utility upon the desirability
of municipal ownership of that utility.
7. The history of railroad development in your section.
8. Outline the more important laws enacted by your state legislature
relative to railroads.
9. Service and rates in your locality during the period of government
control, 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 Municipal
Utilities_; Thompson, _Municipal Ownership_)
14. The case against municipal ownership. (King, _Regulation of
Municipal 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 History
and its Geographic Conditions_, chapter xvii.)
17. Combinations in the railroad industry. (_Lessons in Community and
National Life_, Series A, pages 219-224; Bogart, _Economic History of
the United States_, chapter xxix; Johnson, _American Railway
Transportation_, chapter iii.)
18. Rate-making. (Johnson, _American Railway Transportation_, chapter
xx; Bullock, _Elements of Economics_, pages 212-217.)
19. Physical valuation of the railroads. (_Annals_, vol. lxiii, pages
182-190.)
20. Railroad regulation and the courts. (Johnson, _American Railway
Transportation_, chapter xxvii.)
21. War-time control of railroads in the United States. (_Annals_,
vol. lxxxvi, all; Dixon, _War Administration of the Railways in the
United States and Great Britain_, part i.)
22. Report of the Interstate Commerce Commission upon the desirability
of government ownership of railroads in the United States. (Cleveland
and Schafer, _Democracy in Reconstruction_, pages 382-396.)
23. War-time control of railroads in Great Britain. (Dixon, _War
Administration of the Railways in the United States and Great
Britain_, part ii.)
24. Railroad management in England and France. (Johnson, _American
Railway Transportation_, chapter xxiii.)
25. Railroad management in Italy and Germany. (Johnson, _American
Railway Transportation_, chapter xxiv.)
FOR CLASSROOM DISCUSSION
26. The success with which public utilities in your community have
been regulated.
27. Should the franchise-granting power in your state be still further
restricted?
28. The success of municipal ownership in your locality.
29. The relation of "stock watering" or "overcapitalization" to high
profits. (See Taussig, _Principles of Economics_, vol ii, page 385.)
30. Is public ownership of railroads more practicable under a
democratic or under an autocratic form of government?
CHAPTER XXIX
THE TARIFF
355. THE PRINCIPLE OF EXCHANGE.--In Chapters VII and VIII it was
pointed out that when individuals divide up their labor so that each
becomes a highly specialized workman there is a resultant increase in
the community's productivity. Similarly, when one section of the
country is adapted primarily to manufacturing, while another section
is peculiarly suited to farming, there is a gain in national
productivity when each of these areas specializes in those activities
which it can carry on most effectively, and is content to resort to
trade in order to secure the benefit of industries specialized in
elsewhere. So far as the economic principle is concerned, there is
likewise a gain when different countries specialize in those forms of
production at which their citizens are most effective, and are content
to secure through international trade the products of specialization
in other countries.
356. NATURE OF THE TARIFF.--But though all civilized nations allow and
even encourage the division of labor among their individual citizens
and among the various areas within their own boundaries, many
countries restrict the degree to which their citizens may exchange
their surplus products for the surplus products of foreign producers.
In the United States, for example, Congress has the power to levy a
duty or tariff on foreign-made goods which are brought into this
country for sale.
This tariff may be levied primarily to increase national revenue, in
which case the rate of duty is generally too low to keep foreign goods
out of our markets. When the tariff is purely a revenue measure, "free
trade" is said to exist. On the other hand, a tariff may be so high
that domestic goods will be protected in our markets against
competition from foreign-made goods of a similar grade. In this case a
protective tariff is said to exist, though such a measure also brings
in 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 understand
exactly what is meant by "protection." Suppose that in the absence of
a protective tariff an English-made shoe can be produced and brought
to this country at a total cost of $3.00. Let us assume that this shoe
competes in the American market with an American-made shoe which is of
similar grade, but which, for various reasons, it costs $3.50 to
produce. Suppose, further, that both English and American producer
must 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 make
a profit. Competition would force the American producer to sell his
shoe for $3.50 also, but since this would give him no profit, he would
be forced out of business. In such a case the American manufacturer
might 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 country
for sale here. This would bring the total cost of the English shoe up
to $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 is
forced out of the market. [Footnote: If, in this example, the duty
were, say, $.25, the foreign shoe could continue to enter our markets
and 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 of
protection, and may be stated as follows: Ought Congress to interfere
with 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 in
our national history was the Act of 1789. This was a revenue measure,
though it gave some degree of protection to American industries. Down
to the close of the War of 1812 our tariff was mainly for revenue
purposes. After the close of that war a heavy duty on foreign iron and
textile products was imposed for the purpose of protecting domestic
producers against the cheaply-selling English goods which were
flooding our markets. After 1816 it became our policy to combine in
the same tariff act high protective duties with revenue duties. In
1824 the general level of duties was raised. In 1828 Congress
endeavored to lay a tariff which would suit all sections of the
country, but the attempt failed.
Between 1828 and 1842 the tariff was gradually lowered. Between 1842
and 1861 our tariff policy was unsettled, but in the latter year the
domestic disturbances brought on by the Civil War resulted in the
passage of a tariff which turned out to be highly protective. In the
period immediately following the Civil War the tariff continued to be
very high, due chiefly to pressure from industrial interests which had
secured protection from the war rates. In spite of attempted reform in
1870, 1873, and 1883, the tariff continued to be highly protective.
In 1894 the Democrats reduced the tariff somewhat, and in 1909 the
Republicans attempted to satisfy a popular demand for lower rates by
the passage of the Payne-Aldrich Act. This measure reduced some rates,
but not enough to satisfy the popular mind. In 1912 the Democrats
returned to power, and the following year passed the Underwood-Simmons
Act, lowering the rates on many classes of commodities, and placing a
number of important articles on the free list. In 1920 the Republican
party again secured control of the government, and the tariff was
raised. At present our tariff is highly protective.
359. COMPROMISE CHARACTER OF TARIFF.--Our tariff history is full of
inconsistencies. The pendulum has swung first to low duties and then
to severely high duties. No tariff has satisfied all the interests
involved; indeed, no other issue, with the possible exception of
slavery, has provoked as much political strife as the tariff. Every
tariff is essentially a compromise, for a duty upon practically any
commodity which we might select will benefit some of our citizens,
while it will either prove of no use to other individuals or will
actually injure them. Animated by self-interest, the farmer, the
lumberman, the miner, or the manufacturer, each desires a protective
duty on the commodity which he produces, and a low rate, or no duty at
all, upon commodities which he consumes. As a result, the tariff has
become a sectional problem, in the solving of which Congressmen have
too often considered as paramount the economic interests of the
particular locality which they represent.
360. NATURE OF THE TARIFF ARGUMENT.--The tariff question generally
divides men into two camps, those favoring "free trade," and those
demanding duties that are highly protective. From the standpoint of
economics, the most vital argument against protection is that there is
no fundamental reason why there should not be free trade between
nations. Protection is economically wasteful because it diverts
capital and labor from industries in which we are relatively effective
to industries in which our productivity is relatively low. High
protection is thus said to decrease national productivity, and to
impose a burden upon the consumer by preventing him from purchasing
cheaper foreign-made goods.
In view of these facts, the free trader claims that to the extent that
the tariff is an economic proposition, the burden of proof rests upon
the protectionist. If this assertion is accepted, the tariff argument
consists of the attempts of the protectionist to outweigh the above
economic argument for free trade by putting forth economic arguments
for protection, and by developing social and political reasons for a
protective tariff.
361. AN EARLIER TARIFF ARGUMENT.--Formerly one of the most important
arguments for protection was the home market theory. This theory was
advanced in 1824 by Henry Clay. In the effort to win the agricultural
interests to protection, Clay maintained that a protective tariff on
manufactures would develop urban centers, and that this would increase
the purchasing power of the city dwellers. This increased purchasing
power, Clay declared, would assure the farmer of a steady domestic
market, not only for his staples, but also for perishable goods which
could not be shipped to foreign countries.
Though still heard in tariff discussions, this argument now exerts
less influence than formerly. Perfected means of transportation have
tended to place domestic and foreign markets on an equal footing.
Moreover, the population of our cities has increased so much more
rapidly than has the productivity of our farms, that it is unnecessary
artificially to create a home market for the farmer's produce.
362. THE WAGES ARGUMENT.--At the present time one of the most
important arguments in favor of a protective tariff is that it either
creates or maintains a relatively high level of wages for workmen
engaged in the protected industries. Those advancing this argument
believe that free trade would lower wages and depress the standard of
living for large groups of workmen.
The free trader maintains that high wages do not depend upon
protection, and this for three reasons: First, equally high wages are
often paid in protected and unprotected industries alike; second, high
wages do exist in a number of protected industries, but many of these
industries also paid high wages before protection had been secured;
third, there is nothing in a protective tariff to force employers to
pay more than the current wage. Rather than raising wages, Professor
Taussig maintains, "protection restricts the geographical division of
labor, causes industry to turn to less advantageous channels, lessens
the productivity of labor, and so tends to lower the general rate of
wages."
363. THE VESTED INTERESTS ARGUMENT.--An important argument in favor of
continued protection is that the introduction of free trade would ruin
valuable manufacturing businesses which have been built up under
protection, and which are unprepared or unable to maintain themselves
against foreign competition. In the case of such industries, it is
maintained, the removal of protection might result in economic
disaster. 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 free
trader will admit that a sudden removal of tariff duties might be
demoralizing to industries long used to protection. Nevertheless, the
vested interests argument is not so much an argument for continued
protection as it is a reason why there should be a gradual rather than
a sudden removal of protective duties. If protection were to be scaled
down gradually and wisely, there is no reason why capital invested in
industries unable to stand foreign competition could not be gradually
transferred to industries unaffected by foreign competition.
364. TARIFF ARGUMENTS ACCENTUATED BY THE WORLD WAR.--Three arguments
in favor of protection have taken on greater importance because of the
World War.
One of these is the anti-dumping argument. From the standpoint of the
American tariff, dumping is the practice which some foreign producers
have of temporarily selling their surplus goods in this country at an
abnormally low price. [Footnote: Some American producers in turn
"dump" in foreign markets, but with this practice we are not here
concerned.] If dumping were permanent, we would gain because we would
be 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 force
domestic producers out of business. Then later the foreign supply may
diminish, in which case we suffer from a shortage of goods. If foreign
producers do continue to supply the American market they may take
advantage of the fact that American competitors have been forced out
of business, and demand monopoly prices. The free trader admits the
force of the anti-dumping argument, and concedes that the intense
economic rivalry growing out of the World War rendered desirable
tariff rates which would protect domestic producers against dumping.
Another protectionist argument which has gained in strength because of
the War is the "infant industries" argument. Protectionists claim that
industries really adapted to this country may be prevented from
arising here because of their inability, while still in the
experimental stage, to meet strong competition from well-established
foreign producers. When an industry is in the experimental stage the
cost of production is relatively high, and the price will be
correspondingly high. Well established and economically-conducted
businesses can undersell these experimental or "infant" industries.
Protection for such "infant" industries is therefore sought until such
time as they will be able to stand foreign competition. The free
trader has generally replied that such protection may be desirable in
some cases, but maintains that care should be taken to make such
protection both moderate and temporary, otherwise protection will
perpetuate industries for which we are really unsuited. During the
World War American producers began to manufacture dyes and chemicals
formerly imported from Germany. The industrial importance of these
products gave weight to the belief that the new industries which
sprang up in this country during the War were entitled to protection
against foreign competition.
A third protectionist argument which was strengthened by the World War
is the military or self-sufficiency argument. It has long been the
claim of the protectionist that high tariff duties encourage the
development in this country of all industries producing the
necessities of life, as well as all supplies which are vital in war
time. High protection was thus defended on the grounds that it
permitted the United States to be nationally self-sufficing, thus
allowing us to be relatively independent of other countries,
especially in war time. Previous to the World War many free traders
scoffed at this argument as resting upon an unjustified fear of war,
but this attitude was changed by the dangers to which we were
subjected by the interruption of our foreign trade during the war. At
present the military or self-sufficiency argument is of great
importance.
365. THE TREND TOWARD PROTECTION.--Of late years, therefore, there has
been a distinct trend toward protection in this country. The fear of
dumping, the desire to protect infant industries established during
the World War, and the increased importance of the military or self-
sufficiency argument have been factors in this trend. Another factor
has been that the Republican party, traditionally committed to a
policy of high protection, returned to power in 1920. A last important
influence has been an increased need for Federal revenue. The World
War not only increased our indebtedness, but the advent of national
prohibition in 1919 cut off a source of Federal revenue formerly very
important.
366. TARIFF NEEDS.--From the standpoint of practical politics, one of
the greatest needs of our time is for an intelligent and public-
spirited handling of tariff problems. The tariff is a technical and
highly complex question, upon which politicians have heretofore had
too much to say, and trained economists too little. Too often, vague
claims and political propaganda have carried more weight than have
facts.
It is asserted by many that the tariff can never be taken out of
politics, but this is perhaps too strong a statement. In this
connection an interesting development was the establishment in 1916 of
the United States Tariff Commission. This Commission consists of six
members appointed by the President for twelve years. Not more than
three of the members may belong to the same political party. It is the
duty of the Commission to investigate conditions bearing upon the
tariff and to report its findings to Congress. It is hoped that this
plan will place at the disposal of Congress scientific data on which
to base tariff legislation. So far the Commission has not materially
reduced the influence of politics upon tariff legislation, though it
is perhaps too soon to expect results.
It is sometimes said that our tariff policy ought to be less
changeable. Certain it is that our tariff history is full of
inconsistencies and irrational fluctuations. But the question of a
tariff policy is a thorny one. Manifestly, business should not be
forced to accommodate itself to a purely political manipulation of the
tariff; on the contrary, the tariff ought to vary with changes in
business conditions at home and abroad. Whatever may be implied by a
tariff "policy," it is also certain that the tariff should somewhat
accommodate itself to revenue needs. Beyond these somewhat general
statements, however, it is hardly safe to say what should be the basic
elements 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 a
protective 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 Tariff
Commission?
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, pages
394-395.)
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 your
section.
2. The infant industries argument with reference to conditions in your
section.
3. Commodities essential to the prosperity of your community which are
imported from abroad.
4. The attitude of your section of the country toward the tariff. Has
this attitude changed in the past fifty years?
5. Write to your Representative in Congress for his opinion on the
need of a "fixed tariff policy."
6. Interview several friendly business men on their attitude toward
the tariff.
7. Interview a member of the Democratic party upon the attitude of his
party toward the tariff.
8. Interview a member of the Republican party upon the attitude of his
party toward the tariff.
II
9. The principle of international trade. (Taussig, _Principles of
Economics_, vol. 1, chapter xxxiv; Fetter, _Modern Economic Problems_,
chapter xiii.)
10. The gain from international trade. (Taussig, _Principles of
Economics_, 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 United
States_. Consult also any economic history of the United States, or
any standard text on economics.)
13. Tariff administration. (_Cyclopedia of American Government_.)
14. Political aspects of the tariff. (Tarbell, _The Tariff in Our
Times_, chapter xii.)
15. The history of any important tariff since the Civil War. (Consult
Taussig, _Tariff History of the United States_; Fetter, _Modern
Economic Problems_, chapter xv; any standard work on the economic
history 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 last
half century?
19. How could our protective tariff be abolished without endangering
present investments in protected industries?
20. The question of a national tariff policy.
21. To what extent should the formulation of our tariff acts take into
consideration the wishes of foreign producers who desire to sell their
goods in this country?
CHAPTER XXX
CONSERVATION
367. ATTITUDE OF THE EARLY SETTLER TOWARD NATURAL RESOURCES.--The
chief concern of the early American settler was to turn a virgin
continent into homes as quickly and as easily as possible. During the
seventeenth, eighteenth, and most of the nineteenth century, our
natural resources were very abundant, while labor and capital were
relatively scarce. As the settlers spread across the Appalachians and
into the great West, it was to be expected, therefore, that the home-
maker should use labor and capital as carefully as possible and that
he should use generously such resources as forests, water power, and
soil fertility. Little blame attaches to the early settler for this
attitude, indeed he acted in accordance with sound economic law. This
economic law declares that under any particular set of circumstances
factors of production should be carefully used in proportion as they
are scarce, and generously used in proportion as they are abundant.
368. RESULT: GROWING SCARCITY OF NATURAL RESOURCES.--The rapid
settlement of the West was essential to our national unity and
development. Nevertheless, the extensive and even lavish use of
natural wealth since colonial times has lately called attention to the
scarcity 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 methods
have swept vast areas bare of valuable timber. Careless cutting has
wasted a quarter of our timber supply. In the lumber mill about 40 per
cent of the entire volume of the logs is lost by wasteful methods of
work. Since 1870 forest fires have annually destroyed more than
$50,000,000 worth of timber. Altogether our timber supply is
diminishing three or four times as fast as we are replenishing it.
By holding sod in place, forests furnish a sponge-like reservoir which
absorbs rainfall and then retains it sufficiently to insure that it
will be paid out only gradually. The process of cutting down forests,
called deforestation, destroys the sod, so that streams formerly fed
from forested areas by a steady process become dangerously swollen in
certain seasons and greatly reduced in size at other times. One effect
of this alternation of freshets with abnormally dry periods is a loss
of steady and dependable water power.
Deforestation has also an injurious effect upon agriculture. When
heavy rains wash valuable surface soil from the tops and sides of
hills these denuded areas are rendered less valuable for grazing,
while the overabundance of top soil in the valleys retards effective
cultivation. Agriculture also suffers from the fact that streams which
would ordinarily furnish a steady supply of irrigation water are often
either 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 both
careless and wasteful. The abundance of land in past years seemed to
justify our free use of it, nevertheless such use has in many cases
resulted in a serious loss of fertility. Careless tillage and a
failure 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 has
been wasted as has been mined. Mining corporations have often
neglected low grade coal deposits, and have abandoned mines without
having first removed all of the accessible high grade coal. Imperfect
combustion, both in dwellings and in industrial establishments, is
said to waste more than a third of our coal, as well as creating a
costly and injurious smoke nuisance. Our consumption of coal is
doubling every ten years. In view of the fact that our coal deposits
are limited, this increasing consumption is a serious development.
Iron, too, has been used wastefully. The bog iron deposits of the
Atlantic coast were used up before 1800, and as the result of an
intense industrial development since 1850, the supply of high grade
ores is being speedily diminished. Oil and gas have been used
lavishly, and even, in some cases, deliberately wasted.
369. HIGH PRICES.--The lavish use of natural resources which has
characterized the American people since colonial times has been an
important factor in the cost of living. In early days there was an
abundance of resources and few people to use them; at present the
supply of many of our resources is greatly diminished, and there is a
much larger population seeking to use them. In the case of every
natural resource the supply is either limited or is failing to
increase as rapidly as are the demands upon it. The result is higher
prices for coal, wood, iron, oil, gas, and similar commodities. It is
at least partly due to the heavy drain upon our resources that the
cost of building homes, heating them, feeding the population, and
carrying on the varied activities of American industry is steadily
increasing.
370. MONOPOLY.--Throughout the history of our natural resources there
has been a strong tendency toward monopoly. Natural resources should
be safeguarded for the benefit of the people as a whole, yet much of
our natural wealth has been monopolized by individuals. Four fifths of
our timber lands are privately owned, and of that four fifths about
half is controlled by 250 companies. Two thirds of the developed water
power in this country is controlled by a small group of power
interests. Defective land laws, the lax administration of good laws,
and extravagant land grants to railroads have allowed private fortunes
to be built up without a proportionate advantage to the public. Coal
and petroleum deposits are controlled largely by a few corporations,
while a heavy percentage of our copper and iron deposits is in private
hands.
371. THE CONSERVATION MOVEMENT.--After the middle of the nineteenth
century the growing scarcity of many natural resources called
attention to the need of conserving them. Conservation means to
utilize economically, rather than to hoard. It means, furthermore,
that resources should be used so that both the present and future
generations will reap a proper benefit from America's great natural
gifts. Thus conservation seeks, Mr. Van Hise once said, "the greatest
good to the greatest number, and for the longest time." The dawn of
the conservation idea stimulated a reaction against the careless
administration of natural resources. Toward the end of the 19th
century, there was an increasing amount of legislation encouraging the
legitimate use of natural resources on the one hand, and repressing
monopoly on the other. After the opening of the twentieth century
interest in conservation increased. In 1908 President Roosevelt called
a conference of the governors of the various states for the purpose of
considering this vital problem, and from that meeting dates a definite
and nationwide conservation policy in this country.
Some of the effects of this changing attitude toward natural resources
may now be noted.
372. FORESTS AND WATER POWER.--In 1891 a Federal law provided for a
system of national forest reservations. These reservations now include
a substantial proportion of our forests, and are steadily extending
their limits. Since 1897 there has been a Bureau of Forestry which has
performed invaluable services. Forest fires have been reduced, denuded
areas have been reforested, forest cutting has been controlled, and a
constructive program of forest culture developed. Forest reserves
under the control of the individual states now total more than
10,000,000 acres. Of late years there has been an increasing use of
dams and reservoirs for the storage of flood waters and the
development of water power. This regulation of streams gives a uniform
flow of water both for navigation and for irrigation purposes.
373. THE LAND.--The desire to encourage the home-maker has long been
the motive power behind our public land policy, but unfortunately many
of our earlier land laws did not prevent peculators and large
corporations from fraudulently securing control of land intended for
the _bona fide_ or genuine settler. Within the last quarter of a
century our land laws have been reorganized, with the double aim of
doing justice to this type of settler, and of suppressing speculation
and monopoly. As the result of Land Office investigations in 1913,
more than 800,000 acres were returned to the public domain, on the
ground that they had been secured through fraud.
The Department of Agriculture has steadily extended its scope. Better
methods of cultivation, lessons in soil chemistry, and experiments
with new and special crops have helped conserve the resources of the
land. An elaborate system of experiment stations has been built up
since 1887. The Weather Bureau in the Department of Agriculture saves
millions of dollars' worth of property annually by sending out
warnings of frost, storm, and flood.
Reclamation is increasingly important. New crops are being developed
for the semi-arid areas of the West. Swamp lands in the East and South
are being drained. Levees and breakwaters along the Mississippi are
helping to prevent the loss of arable land through the river's changes
in course.
Even more important is the irrigation movement. In 1894 the Carey Act
gave Federal encouragement to several western states in irrigation
projects, and in 1902 the Reclamation Act provided for the
construction of irrigation works under the direction of the Secretary
of the Interior. The plan provided by the Act of 1902 is self-
supporting, the expense of the construction and improvement of the
irrigation system being met from the sale of public lands. The
administration of the Reclamation Act has already resulted in millions
of acres being brought under cultivation.
374. MINERALS.--Until 1873 coal lands were disposed of on practically
the same terms as agricultural lands. But after that date laws
restricting the purchase of coal lands began to be increasingly
severe. In 1910 Congress withdrew from public sale nearly 100,000,000
acres of coal, petroleum, and phosphate lands. At the present time the
discovery of coal on land secured by settlers for purely farming
purposes entitles the government to dispose of the coal deposits under
special conditions. There is also a tendency for the government to
demand higher prices of individuals buying public coal lands.
In some quarters there is a demand that all coal lands be leased
rather than sold. The Federal government has not yet yielded to this
demand, but Colorado and Wyoming now lease rather than sell their coal
lands. Under the lease system in these states, the state retains
ownership, but allows private individuals a definite commission per
ton of coal mined. The lease system is also advocated in the case of
lands containing iron, oil, and gas deposits, on the grounds that it
safeguards the interests of the public and at the same time allows the
mining corporations a fair profit.
375. REASONS FOR OPTIMISM.--In spite of the appalling waste which has
been characteristic of our administration of natural resources, the
outlook is distinctly encouraging. Resources used by past generations
are gone forever, but at last we are making rapid strides in
conserving what is left. Not only this, but we are perfecting plans
for an increased supply of those resources which can be replenished.
The admirable work of our Forest Service promises not only to reduce
the present waste of wood products, but actually to increase the
supply of timber. The Service deserves high praise both for its work
in saving and replenishing forests, and for its wise handling of
forest problems involving other resources. "By reasonable thrift,"
runs a report of the Forest Service, "we can produce a constant timber
supply beyond our present need, and with it conserve the usefulness of
our streams for irrigation, water supply, navigation, and power."
We now appear thoroughly awake not only to the necessity of
safeguarding what is left of the public domain, but also to the
necessity of increasing the productivity of inferior lands. There are
still in this country more than 300,000,000 acres of unappropriated
and unreserved land. Three fourths of this area is at present fit only
for grazing, but the rapid development of kaffir corn, durum wheat,
Persian clover, and other crops suitable for dry soils bids fair
greatly to increase the productivity of this land.
The irreplaceable character of our mineral deposits, together with the
tendency for large industrial interests to monopolize minerals. has
greatly stimulated the conservation of these resources. A valuable
step forward has been the reclassification of public lands to allow of
special treatment of lands containing mineral deposits. Coal is still
used lavishly, but nine tenths of our original deposits are still in
existence. Furthermore, water power, electricity, and other
substitutes for coal are being developed. Our high grade iron ores
will be exhausted in a few decades, but an iron shortage may be
prevented by more careful mining, the use of low grade ores, and the
use of substitutes.
376. DIFFERENT RESOURCES CALL FOR DIFFERENT TREATMENT.--A wise
conservation policy will take note of the fact that different
resources call for different types of treatment. Coal, petroleum, oil,
and gas are limited in extent and are practically irreplaceable. These
should be taken from the earth and utilized as economically as
possible. The same is true of the metallic minerals, such as iron and
copper, though here the use of substitutes is of greater importance
than in the case of non-metallic minerals.
Water can best be conserved by the wise development of water power
sites, and by the careful utilization of streams.
Forests may be renewed, but slowly. Their conservation requires the
prevention 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, and
phosphorus are valuable.
377. SOME CONSERVATION NEEDS.--The above considerations indicate some
of our conservation needs. It is believed by most students of
conservation that the Federal forest holdings should be extended and
consolidated. There is need for more stringent forest fire
regulations, especially in the case of private forests. In order to
reforest the denuded areas and to grow timber scientifically some such
plan as the German system of forest culture might be adopted. There is
urgent need of a systematic development of our inland Waterways. The
construction of more dams and reservoirs, the dredging of rivers and
harbors, the coördination of canals and inland waterways, and the
improvement of the Mississippi-Great Lakes system, all these would be
helpful measures. Irrigation and other reclamation projects, including
the drainage of swamp lands, should be developed systematically.
American farming methods ought still further to be improved. We are in
need of laws penalizing wasteful methods of mining and prohibiting
uneconomical methods of combustion. Probably the system of leasing
rather than selling mineral lands should be extended.
A last vital need in conservation is coöperation between state and
Federal authorities, and between private individuals and public
agencies. This is of great importance. Where rivers course through
several states, and where forest fires in one section threaten
adjacent forest areas, coöperation must be secured. The Governors'
Conference of 1908 stimulated coöperation between the states and the
Federal government, and since 1909 the National Conservation
Association has been a means of coördinating the work of all persons
and agencies interested in conservation. There is still, however,
little coöperation between state or Federal governments on the one
hand, and private owners on the other. It is a matter of special
regret that although four fifths of our forests are privately owned,
both fire prevention and scientific forestry are little developed on
private estates.
378. THE QUESTION OF ADMINISTRATION.--Though it is conceded on all
sides that our natural resources ought to be utilized economically,
there is much discussion as to whether the states or the Federal
government ought to dominate the conservation movement.
Those favoring the extension of Federal control over conservation
point out that forest control, irrigation, conservation of water
power, and similar projects are distinctly interstate in character,
and are thus properly a Federal function. Federal administration is
said to be necessary in order to insure fair treatment of different
localities. Finally, it is maintained, the states have either
neglected the question of conservation, or have handled it in their
own interests rather than with regard to the national welfare.
A strong party maintains, on the other hand, that conservation is
primarily a state function. The movement is said to be too large for
the Federal government to handle. It is contended that there is no
specific warrant in the Constitution for the Federal control of
conservation. It is also claimed that Federal administration of
natural resources has been accompanied by waste and inefficiency.
Conservation is said to be a local question, best administered by
those most interested in the problem, and, by reason of their
proximity to it, most familiar with it.
The problem of administration is a difficult one. In a number of cases
the claims for and against Federal control are obviously sound. But
from the standpoint of the public the whole matter is of secondary
importance: the problem of administration ought to be decided on the
basis of what is best under particular circumstances. Some phases of
conservation are probably best looked after by the states, others by
the Federal government, still others by the state and Federal
governments jointly. The problem of conflicting authority ought
somehow to be solved. Conservation is too vital a matter to be
hampered by the question of method or means.
QUESTIONS ON THE TEXT
1. What was the attitude of the early settler toward natural
resources?
2. Discuss the growing scarcity of natural resources.
3. What is the relation of lavish use of natural resources to the cost
of living?
4. What part has monopoly played in the history of our natural
resources?
5. Describe the origin and early development of the conservation
movement.
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 mineral
deposits?
10. Why may the present outlook for conservation be said to be
optimistic?
11. Outline our conservation needs.
12. Why is coöperation essential to the conservation movement?
13. Give the chief arguments for and against Federal administration of
conservation.
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 early
settlers. (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, page
394.)
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? (Van
Hise, 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 rapidly
as possible? (Van Hise, page 14.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Interview an old resident with regard to the relative abundance of
forests, cheap land, and wild game in your locality a half century
ago.
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 make
this land more productive?
5. Classify the mineral deposits of your state. By whom are they
controlled?
6. List the water-power sites in your locality. Draw up a plan for
reforestation which would include constructive measures for the
conservation of land and water power as well as forests.
7. If possible, visit a lumber camp or a mine, and observe the methods
of work.
8. Outline a plan for a local conservation club, to be affiliated with
the National Conservation Association.
II
9. The principles of conservation. (Van Hise, _Conservation of Natural
Resources_, pages 359-362.)
10. Relation of population to conservation. (Van Hise, _Conservation
of Natural Resources_, pages 375-380.)
11. The use of our forests. (Van Hise, _Conservation of Natural
Resources_, pages 218-260.)
12. Water power. (Van Hise, _Conservation of Natural Resources_, pages
106-185; Huntington and Gushing, _Principles of Human Geography_,
chapter ix.)
13. Irrigation. (Van Hise, _Conservation of Natural Resources_, pages
185-202; Huntington and Gushing, _Principles of Human Geography_,
chapter xvii.)
14. Inland waterways. (Huntington and Gushing, _Principles of Human
Geography_, 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 of
Natural 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 of
Natural 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 of
Natural 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 this
time economically justified?
25. Under our present laws is it possible effectively to coördinate
the conservation work of state and Federal governments?
26. Are higher prices an effective check to the excessive use of
forest and mineral products?
27. State versus Federal administration of conservation. (Consult the
Debaters Handbook Series.)
CHAPTER XXXI
CREDIT AND BANKING
379. SOME PRELIMINARY DEFINITIONS.--Money may be defined as anything
that passes freely from hand to hand as a medium of exchange. Money is
of two types: first, coin, including gold, silver, nickel, and copper
coins; and second, paper money, including several kinds of
certificates and notes. Both types of money, coin and paper, are
called "cash." Credit refers to a promise to pay money or its
equivalent at a future date. A bank is an institution which makes it
its special business to deal in money and credit. A check is a written
order directing a bank to pay a certain sum of money to a designated
person. A bank note is a piece of paper money or currency which
constitutes the bank's promise to pay in coin and on demand without
interest, the sum named on the face of the note. A reserve fund is an
amount of money or securities which a bank habitually keeps on hand as
a partial guarantee that it will be able to meet its obligations.
380. TYPES OF BANKS.--Of the several types of banks, the savings bank
is perhaps the most familiar to young people. A savings bank will
receive deposits of one dollar or more, and will pay interest on these
amounts. But the savings bank does not pay out money on checks drawn
against deposits. Indeed, it may require a formal notice of several
days before deposits can be withdrawn.
In many states there are trust companies. In addition to performing
the function of a commercial bank, trust companies take care of
valuable papers, execute trusts and wills, and sometimes guarantee
titles to land.
The investment bank is usually a private institution, conducted
chiefly in the interests of certain large industrial organizations.
A fourth type of bank is the commercial bank, with which this chapter
is chiefly concerned. The commercial bank derives its name from the
fact that it deals largely with business men. If classified on the
basis 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: Throughout
the remainder of this chapter the word "bank" should be taken as
referring to the commercial bank.]--The primary function of a
commercial bank is to receive the deposits of persons who have saved
sums of money for which they have no immediate use, and to make loans
to persons who desire them. Of course, those who have deposited sums
with a bank may draw on their accounts at any time, either themselves
demanding sums of the bank, or directing the bank, by means of checks,
to pay specified sums to others. But experience has taught the bank
that if it keeps on hand a reserve fund equal to from five to about
thirty-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 which
depositors will be likely to make upon it. The bank may then loan out
to business men the remainder of the money deposited with it. This not
only encourages production, but it allows the bank to secure a reward
for its services. This reward is in the form of interest paid by those
who borrow of the bank.
382. THE NATURE OF BANK CREDIT.--When an individual actually deposits
with a bank $100 in cash, the bank becomes owner of the $100, and in
turn writes down on its books the promise to pay to the depositor, as
he shall direct, amounts totaling $100. The depositor receives a
check 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 checking
account at the bank, but that he has no actual cash with which to make
a deposit with the bank. In this case he may give the bank his
promissory note, together with stocks, bonds, or other forms of
wealth, which the bank holds as security. In return, the bank credits
him with a "deposit." This means that the bank extends its credit to
the individual, by undertaking to honor checks for sums not actually
received from the depositor.
The bank has received valuable security from the borrower and hence
feels justified in extending him a deposit credit. But, why does a
bank feel _safe_ in undertaking to pay out sums of money which it does
not actually have in its vaults? The answer is that the bank attempts
to keep on hand a reserve fund sufficient to meet all demands for cash
which may be made upon it. If the reserve fund is relatively large,
the bank will ordinarily loan its credit freely. If the cash reserve
is relatively low, the conservative bank may refuse further loans, on
the grounds that its cash reserve is too low to justify the acceptance
of additional obligations. The only safe alternative to this is for
the bank in some way to increase its reserve fund, and then proceed to
extend the amount of credit justified by this increased reserve.
383. DANGERS OF BANK CREDIT.--The integrity of these various
operations rests upon the confidence which people have in the bank's
ability to make good its promises. Confidence in the deposit credit of
a bank exists when the past experience of depositors has taught them
that the bank in question will habitually exchange either coin or bank
notes for checks. Bank notes are ordinarily accepted in the place of
coin, because people believe the credit of the bank issuing those
notes to be so firmly established that the bank would be able and
willing to exchange coin for its notes, upon demand. A bank is
enabled to meet these obligations promptly, it should be remembered,
because it keeps on hand, against the demands of depositors, a reserve
fund of cash, or securities which by law it is allowed to count as
cash. If all of the depositors of a bank suddenly and simultaneously
demanded the full amount of their deposits in coin, the bank would be
unable to accommodate them; as a matter of fact, business men normally
leave in the bank that share of their deposits which they do not
actually need. So long as men have confidence in a bank, they will
prefer checks and bank notes to the less convenient coin, unless they
need coin for some special purpose.
If properly managed a bank is a profitable business for everyone
concerned. But even though properly managed, a bank may occasionally
find itself in a precarious position. There are few matters which the
average person comprehends as vaguely as banking, and few things which
more vitally interest him than the safety of his money. These two
facts combine to render banking extremely sensitive to every rumor of
unsoundness. The careful regulation of banking by law is therefore
necessary.
384. THE NATIONAL BANKING SYSTEM.--The Civil War plunged our
government into serious financial straits. To improve the finances of
the Federal government there was created, in 1863, a system of
national banks. The original act of 1863 is still the basis of our
banking 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 this
term is inexact. From the beginning of their history, the so-called
national banks were "national" only in the sense that they were
chartered by the Federal government, and were subject to examination
by Federal inspectors. These national banks constituted no definite
system: they transacted business much as other banks did, they had no
branches, and they had little to do with one another. There was little
team-work, and no effective leadership, so that in time of a
threatened 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 will
be elastic, _i.e._ it will respond promptly to the varying needs of
business. Money and credit constitute a mechanism by means of which
business is handled, just as the labor force of a factory constitutes
a means of handling the output of the factory. If the output of the
factory increases, a larger labor force is needed; if the output
dwindles, fewer laborers are needed. Similarly, if business increases
in volume, an increased amount of money and credit is necessary to
handle the increased volume of business. If, on the other hand,
business declines, the volume of money and credit ought to decline
also. Otherwise, there will be so much money and credit in
circulation, relatively to the amount of goods, that high prices will
result.
High prices will result for the following reason: Money and credit are
used to exchange against goods. As a general proposition, all the
available goods in a community are in a process of exchanging against
all of the available money and credit in the community. If goods are
relatively few and money and credit are relatively plentiful, a small
amount 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 instruments
when business is booming, and will permit the contraction of the
mechanism of exchange when business is growing dull.
The old national banking system was inelastic in two ways: first, it
provided an inelastic supply of deposit credit; second, it provided an
inelastic supply of currency or bank notes.
386. INELASTICITY OF DEPOSIT CREDIT (RESERVES).--It will be recalled
that the amount of loans which a bank may make depends upon the
maintenance of an adequate reserve fund. From this it follows that the
larger the reserve fund the more loans the bank will feel justified in
making. Similarly, if the reserve fund shrinks, sound banking demands
that loans be curtailed. Keeping these facts in mind, there were two
reasons why the supply of deposit credit was inelastic before 1913.
In the first place, individual banks kept only a part of their
reserves actually in their vaults. The remainder, and sometimes the
larger part, of their reserves was maintained in the form of deposits
in other banks. Banks in towns and small cities habitually kept part
of their reserves in the form of deposits in the banks of large
cities, and the latter in turn kept part of their reserves in the
banks of New York City, the financial center of the country. Hence the
cash reserves of the country tended to collect in New York, where they
were utilized by New York banks as a basis for extending loans.
This was a dangerous arrangement. In the fall of the year large
amounts of cash were demanded in the West, in order to pay farm hands
and otherwise "move the crops." At such times the small western banks
had to demand their deposits in larger banks, while these in turn had
to call for their deposits in the New York banks. The New York banks
were often embarrassed by these demands, because they made a practice
of fully utilizing the funds left with them, as a basis for extending
loans. The call in the West for cash meant a curtailment of these
loans with a consequent demoralization of eastern money markets.
In the second place, individual banks were unable to extend loans to
customers beyond the point justified by the amount of reserves in
their vaults, or deposited to their credit in other banks. A bank with
a total reserve of $10,000 might feel justified in loaning its credit
to the extent of $100,000, but in case demands for additional loans
were made upon it, sound banking practice would oblige it to refuse
accommodation. Otherwise it might later find itself unable to get
enough cash to pay out against claims made in the form of checks. This
practice of curtailing loans when reserves were depleted was
demoralizing to business, since the disappointed customer might find
his entire business blocked, and this in turn would inconvenience or
seriously injure all those who were connected with him in a business
way. Before 1913, each bank stood as a unit, and when its reserves
were depleted it could not secure temporary aid from other banks.
There was no centralized control, and no method whereby national banks
might secure help of one another.
387. INELASTICITY OF CURRENCY (BANK NOTES).--We have seen that an
increased volume of business demands an increased volume of money and
credit. In the previous section it was pointed out that before 1913
the volume of _deposit credit_ in this country was inelastic. We must
now notice that _bank notes_, or _paper currency_, are just as truly a
part of the volume of money and credit as is deposit credit, and we
must note, also, that just as deposit credit was inelastic before
1913, so the issue of bank notes was inelastic. Previous to 1913 it
often happened that the supply of bank notes was smallest when
business was expanding, and that the issue of bank notes increased
during dull business periods. This statement requires some
explanation.
The Act of 1863 provided that National banks might issue bank notes
only after depositing in the Federal Treasury an amount of United
States government bonds sufficient to render the bank notes absolutely
safe. Naturally, the banks made heavy purchases of bonds when the bond
market was depressed, and tended to purchase relatively few bonds when
those securities were high in price. Since the only reason for
purchasing bonds was to enable the b banks to issue notes, more notes
were issued when bonds were low in price, and fewer were issued when
bonds were high. Unfortunately, the same general conditions that
stimulated business also tended to raise the price of bonds, while the
causes of slack business often operated to lower bond prices. This
means that when business was expanding, and more notes were needed,
bonds were so high that few were purchased, and consequently few notes
were issued. Similarly, when business was dull, more bonds were
purchased, and more notes issued.
388. THE PANIC OF 1907.--The panic of 1907 attracted attention to
these two great defects of the old national banking system, _i.e._ the
inelasticity of deposit credit and the inelasticity of currency. In
the fall of 1907, a bumper crop caused Western banks to make unusually
large demands for cash upon the New York banks. Unfortunately, this
depletion of reserves came at precisely the time when the demand upon
New York banks for loans was greatest. There was thus increased
pressure exerted upon New York banks for loans, but less justification
for extending them. In response to the pressure for loans, some New
York banks over-extended their credit. In October the inability of a
few prominent banks to pay in cash all of the demands made upon them
started a series of bank "runs." Even solvent institutions were unable
to meet their obligations promptly and many failures occurred. A large
number of banks were technically insolvent, that is to say, their
assets were invested in forms which prevented their immediate
conversion into cash, so that for the time being demands for cash
could not be met. The lack of an effective banking system prevented
these banks from securing temporary aid from banks more favorably
situated.
389. REFORM.--The panic of 1907 stimulated financial experts to
attempt to remedy the defects of our banking system. In 1908 a
monetary commission was appointed to investigate banking experience at
home and abroad. As the result of this investigation it appeared
advisable to establish a system which should secure some of the
advantages of such centralized banking systems as have long existed in
many European countries. A single central government bank was at first
recommended by experts, but this was deemed politically inexpedient.
In view of this fact resort was had to a compromise between a
centralized and a decentralized system. This compromise was effected
by the Federal Reserve Act of 1913.
390. FRAMEWORK OF THE FEDERAL RESERVE SYSTEM.--The Act of 1913 is
administered by the Federal Reserve Board, consisting of the Secretary
of the Treasury and the Comptroller of the Currency, _ex officio_, and
five other members appointed for ten years by the President. The
country is divided into twelve districts, in each of which there is
located a Federal Reserve bank. In each district every National bank
must subscribe six per cent of its capital and surplus for stock in
the Federal Reserve bank, and thus become a "member" bank. State banks
and trust companies may, upon the fulfilment of certain conditions,
become member banks. Each Federal Reserve bank is governed by a board
of nine directors, six of whom are elected by the member banks of its
district, and three of whom are appointed by the Federal Reserve
Board. The Federal Reserve banks are bankers' banks, that is, they do
not ordinarily deal directly with individuals, but with member banks
only.
391. ELASTICITY OF DEPOSIT CREDIT (RESERVES).--The piling up of bank
reserves in New York is impossible under the Federal Reserve system.
The reserves of any member bank do not ordinarily move beyond the
district, for a member bank may count as legal reserve only those
funds which it has placed on deposit in the Federal Reserve bank of
its district. There exists what may be called district centralization
of reserves; that is to say, all of the legal reserves of all the
member banks of a particular district are concentrated in the Federal
Reserve bank of the district, and can be utilized as a unit by that
Federal Reserve bank. If in time of stress the total reserves of the
district are insufficient, the Federal Reserve Board may arrange for
the temporary transfer of surplus funds from one Federal Reserve
district to another. This secures one of the most important advantages
of a central bank without actual centralization.
Elasticity of deposit credit is also provided for in the
"rediscounting device." A bank discounts commercial paper when it
loans an individual, say, $980, on the security of a $1000 promissory
note. The $20 represents an amount which the bank counts out, or
discounts, as payment for the service. A further operation, long known
in Europe as rediscounting, was authorized by the Act of 1913. When
the reserves of a member bank are too low to justify further
extensions of deposit credit, the bank can send certain types of
discounted paper to the Federal Reserve bank of its district, and
receive in return either a deposit credit or a special form of paper
currency called Federal Reserve notes.
392. ELASTICITY OF CURRENCY (BANK NOTES).--When, in return for
discounted commercial paper, the Federal Reserve bank extends a
deposit credit to the member bank, the _deposit credit_ of the member
bank is rendered more elastic. When, on the other hand, the Federal
Reserve bank sends the member bank Federal Reserve notes in exchange
for discounted paper, the result is a certain elasticity in the
_currency_.
The Federal Reserve notes are a new type of currency. They are secured
by the maintenance, in the vaults of the Federal Reserve banks, of a
forty per cent gold reserve for their redemption. Since these notes
are issued to member banks in return for rediscounted paper, the
expansion of business and the resultant tendency of member banks to
send discounted paper to the Federal Reserve bank for rediscount
causes the volume of Federal Reserve notes to expand. When the need
for additional currency has subsided, there is an arrangement whereby
a certain amount of the Federal Reserve notes may be withdrawn from
circulation. This is important, for if the amount of money in
circulation continues to be enormous after business has declined,
inflation and high prices result. _A truly elastic banking system
necessitates contraction as well as expansion._
393. THE OUTLOOK.--On the whole, it would seem that the Federal
Reserve System is a happy compromise between the centralized banking
systems of Europe and the highly decentralized system existing in
this country prior to 1913. The Federal Reserve system allows us to
secure the main benefits of a great central bank without the political
difficulties attendant upon the existence of such a bank. It does a
great deal to make elastic our supply of money and credit. The Federal
Reserve Board can mobilize the entire banking strength of the country
in time of stress, so that the strength of one member bank is the
strength of the whole system. Since it controls not only a substantial
proportion of the bank reserves of the country, but also the privilege
of note issue on the security of rediscounted paper, the Federal
Reserve Board can administer the member banks as a unit. The system
may not eliminate panics, but it is fair to expect that it will reduce
their 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 confronted
with demands for loans, in what two ways may it dispose of these
demands?
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 national
banking 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 deposit
credit.
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_, chapter
xxx.
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, pages
369-370.)
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, page
302.)
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 literature
describing 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 you
live? In what city is the Reserve Bank located? Why do you suppose it
is located in this city?
4. List the banks in your vicinity that are members of the Federal
Reserve system.
5. Interview an official of a bank belonging to the Federal Reserve
System upon the advantages of such membership.
6. Interview a friendly official of a bank which does not belong to
the system. Try to ascertain the reasons why this bank does not belong
to 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, chapter
i; Fetter, _Modern Economic Problems_, chapter vii; Fiske, _The Modern
Bank_, 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 Modern
Bank_, 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 United
States_, chapter i.)
16. The First United States Bank. (White, _Money and Banking_, part
iii, 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_, part
iii, 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 United
States_, 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 in
England, France and Germany? (See the Debaters' Handbook Series.)
26. Should all State banks and trust companies be required by law to
become members of the Federal Reserve System?
27. What would be the best method of acquainting the general public
with the fundamental principles of banking?
CHAPTER XXXII
TAXATION
394. THE INCREASING COST OF GOVERNMENT.--In the United States, as in
other modern civilized countries, the cost of government is steadily
increasing. The settlement of the Great West, the depletion of natural
resources and the transition from a primitive to an industrial economy
have obliged our government to pay out larger and larger sums for the
services of public officials, and for the materials and commodities
used for public purposes. The growth--of our cities and the increasing
complexity of our industrial life have greatly increased the number of
activities which it is to our advantage to carry on, not individually,
but collectively or through the agency of government. The spread of
altruism and the widening of the concept of social service have caused
the extension of governmental activity in such new fields as social
insurance, recreation, and public health. Altogether, our total
government expenditure is more than seventeen times as large as it was
a half century ago, while the per capita expenditure is more than five
times as great.
395. SOURCES OF PUBLIC REVENUE.--Writers on taxation generally
enumerate as sources of public revenue, public industries, the public
domain, gifts, confiscations, fees, special assessments, fines, and
taxes. At various times and in different countries of the world, all
of these have been important, but in the United States at the present
time taxes are by far the most important source of public revenue.
A tax may be defined as a compulsory contribution exacted from the
individual by the government, for the purpose of defraying expenses
incurred for the common welfare. The government does not return to the
individual taxpayer a definite commodity or service. In return for
taxes the government indeed renders many valuable services, such as
public education, the safeguarding of health, and protection from
domestic violence and foreign war. But on account of the collective
character of these services, no attempt is made to apportion the
payment exacted of the individual to the benefit which he as an
individual receives.
Until recently our national government secured most of its revenue
from taxes on imports, and from excises or internal taxes on such
commodities as tobacco and liquor. Since national prohibition went
into effect (1919), the Federal revenues are derived mainly from taxes
on imports, from income and inheritance taxes, and from taxes on
corporations.
More than three fourths of the receipts of state and local governments
are derived from the general property tax, the amounts collected from
other sources being as yet relatively unimportant. The general
property tax is supposed to be levied upon all the property in the
possession of taxpayers, though as we shall see a little later, this
tax works out very badly. The old "poll" or head tax was formerly
important, but at present less than two thirds of one per cent of
state and local revenues are derived from this source. In most states
it is being abandoned because of its small yield, and because of the
difficulty and expense in collecting it.
A. DEFECTS IN AMERICAN TAXATION
396. LACK OF A TAX SYSTEM.--The fundamental defect of American
taxation is the lack of a definite and coördinated system. The tax
laws of most states have been radically changed during the last few
decades, and are still in a process of development. In many states old
taxes are being modified or abandoned, and new taxes adopted. But too
often this is being done without regard for the taxation reform of
other states or of the Federal government. As a result, the tax burden
weighs unequally upon different classes, while between state and
state, or between state and Federal government, there is an
overlapping of tax power. The effect of this overlapping is to create
undue confusion, and to demoralize both tax officials and taxpayers.
397. LEGAL RESTRICTIONS UPON TAXING POWER.--A serious defect of
American taxation is the lack of correspondence between taxing power
and fiscal needs. Let us inquire into this.
The Federal government has important functions to perform, but has
practically unlimited taxing power. So far as the national government
is concerned, the problem of finding sources of revenue is relatively
simple.
The functions assumed by the state governments are as yet relatively
few and inexpensive, while the power of the state to tax is but
slightly abridged by the Federal Constitution. States have relatively
little difficulty in making both ends meet.
Local governments, and especially municipal governments, have a large
number of functions which are increasingly important. Of the total
government expenditure in this country, about 35 per cent is made by
the Federal government, 10 per cent by the state governments, and 55
per cent by the local governments. But whereas Federal and state
governments have relatively adequate taxing powers, the taxing powers
of local governments are narrowly restricted by the state constitution
and statutes. Such local functions as health, public school education,
and recreation are constantly demanding greater expenditures, yet
local governments as yet have few opportunities for securing necessary
funds.
398. DEFECTS IN TAX ASSESSMENT.--The defects of tax assessment are
clearly illustrated in the workings of the general property tax,
called by some authorities the worst tax in the civilized world. The
basis of levy is the work of local assessors, who are generally
elective. The assessors estimate the value of millions of dollars'
worth of property, and their estimates are the basis of the tax rates
for not only township and county, but generally for the state as well.
Incapable and dishonest assessors often work injustice by
underestimating the value of some forms of property, and
overestimating the value of other forms. In addition, political
pressure is brought to bear upon the assessor to cause him to
undervalue the property of the township or county as a whole, so that
the local unit will bear a relatively small share of the taxes of the
state.
The estimates of the local assessors are commonly subject to
correction by a county, and sometimes by a state, board of
equalization. The duty of such a board is to make assessments uniform
and just, but notwithstanding the efforts of these bodies, unequal and
unfair assessments have persisted.
399. DIFFICULTY OF TAXING INTABGIBLE PROPERTY.--Where taxation is on
the basis of assessment, it often happens that the tax burden rests
unequally upon different forms of property. Property in tangible form,
such as land, cattle, and houses, is easily discoverable, and hence
cannot easily evade the payment of taxes. But intangible property,
such as bonds, stocks, or mortgage, can easily be hidden, so that
owners of this type of property often evade their share of the tax
burden.
This evasion is often practiced in the case of the general property
tax, which is intended to reach both tangible and intangible property.
The general property tax worked well a century ago when the greater
share of wealth existed in tangible form, because local assessors
could easily locate such things as land and live stock. But the rapid
development of corporations, bringing with it a rapid increase in the
proportion of intangible forms of property, has rendered the general
property tax grossly unjust. The assessors of the general property tax
cannot easily discover intangible property, unless taxpayers coöperate
with them. The all too frequent lack of such coöperation causes a
disproportionate share of the tax burden to fall upon tangible
property. The general property tax is haphazard, ineffective, and
demoralizing to both tax officials and taxpayers.
400. DOUBLE TAXATION.--By double taxation is meant the taxation of an
individual or different individuals twice for the same thing. Double
taxation is of two kinds.
The first type of double taxation is illustrated by the taxation of
both tangible property and the paper claim upon that property. For
example, a state may tax a land-owner on his land, and also tax
another resident of the state on the mortgage which he holds against
that land. Or it may happen that a state will tax the land, buildings
and other tangible equipment of a corporation, and at the same time
tax those of its residents who hold stock in that corporation, _i.e._
individuals who hold paper evidence of ownership in the tangible
equipment of the corporation. More generally, however, this type of
double taxation arises when the holder of the paper claim resides in
one state, while the tangible property lies in another state. In such
a case, it is common for one state to tax the paper claim, and for the
other state to tax the property itself. This type of double taxation
is manifestly unfair, and often imposes a ruinous burden upon
property.
The second type of double taxation is illustrated by the overlapping
of similar taxes between state and state, or between Federal and state
governments. Because it is the practice of most states to seek revenue
without regard to the taxing activities of other states, or of the
Federal government, it may happen that corporations, incomes, or
inheritances are taxed by more than one agency of government. If a
scientific and coördinated tax system were deliberately to provide for
this, the supposition would be that such taxation were reasonable and
just, because intended to bear with equal weight upon all forms of
property in the taxable class. But because such taxation is haphazard,
it bears with unequal weight upon corporations and individuals, and is
therefore unjust.
Moreover, it encourages the evasion of tax burdens. Individuals and
corporations sometimes migrate from localities or states in which they
are subject to double taxation, to localities or states in which the
danger of such taxation is less. This in turn has the evil effect of
tempting states and municipalities to neglect taxes on corporations,
incomes, and inheritances for the sake of attracting wealthy
individuals and large industrial organizations from neighboring areas.
B. SOME SUGGESTED TAX REFORMS
401. IDEALS OF TAXATION.--Summarizing the views of the more generally
accepted writers on taxation, we may say that the following are the
basic ideals in taxation:
Taxes should take as little as possible from the people and still meet
the needs of government. Taxes should be uniform, that is, all taxable
articles of the same class should be levied upon at the same rate. It
is also important that the time, manner, and amount of the tax should
not be arbitrary, but that the individual's convenience as regards the
terms of payment should be considered. From the standpoint of the
government, taxes should be easy to administer and economical to
collect.
A good tax system will be elastic, so that taxes may easily be
increased or decreased, according as the revenue needs of the
government change. The ability to pay ought to have some influence
upon the extent to which an individual is taxed. Taxes should adapt
themselves somewhat to the local sentiment as to what is expedient or
socially desirable.
Finally, taxation policies should be systematized and coördinated.
402. ESSENTIALS OF A TAX SYSTEM.--The construction of an ideal tax
system in this country would involve three steps.
In the first place, each branch of government should be enabled to
secure revenues actually needed for justifiable purposes. In this
regard the greatest need is to increase the taxing powers of our
municipalities. This is imperative if the cities of the future are to
care 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 the
taxing power to definite types of taxable wealth. The Federal
government, for example, might secure most of its revenue from import
duties, excises, an income tax, and stamp taxes of various kinds. Many
taxation experts believe that the states ought to confine themselves
mainly to license, corporation, inheritance, and, possibly, income
taxes. Local governments might well secure most of their revenue from
taxes on franchises, licenses, and real estate. Such a separation of
taxing power might aid in the adjustment of fiscal needs to taxing
power, as well as helping to remedy the evil of double taxation.
However, a complete separation of taxing powers is not necessarily
desirable, and certainly it is not practicable, for there is a growing
tendency toward duplication in income, inheritance, and other taxes.
At the present time, for example, not only the Federal government, but
many 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 coördination
should be so to distribute tax burdens that no form of taxable wealth
would escape its just burden, and so that no form of wealth would be
subjected to unduly heavy taxation. There is a growing feeling that to
prevent double taxation and similar evils, all local taxing bodies
ought to be coördinated under the state authorities, while for similar
reasons the Federal government ought to have some measure of direction
or control over that share of state taxation which is interstate in
its effects.
403. REFORM OR ABOLITION OF THE GENERAL PROPERTY TAX.--The reform of
state and local taxation logically begins with the general property
tax.
In many states attempts are being made to reform this tax. In some
cases "tax ferrets" are employed to discover tax evaders, a policy
which may easily lead to corruption and favoritism. In other states
the conviction is growing that local elective assessors ought to be
supplanted by a permanent corps of state assessors, appointed under
the merit system. This would reduce the danger of unequal and unfair
assessments.
In other states there is a tendency to abandon the general property
tax altogether. In New York, Massachusetts, Pennsylvania, and other
states, there is a marked tendency to turn over the general property
tax to local governing bodies. In such cases it is intended that the
state shall depend for most of its revenue upon income, corporation,
inheritance, and license taxes.
The future will doubtless see a more widespread tendency toward the
reform or abolition of the general property tax. In some states,
however, such changes in the taxation system require constitutional
amendment, and constitutional amendment is often a slow and tedious
process.
404. REFORM IN LAND TAXATION.--Coupled with plans for the reform or
abolition of the general property tax are proposals for the reform of
land taxation. A primary aim of these proposals, some of which suggest
elements of the single tax doctrine, is to secure a more correct
assessment of land values. In many cases a state does not now tax the
holder of a mortgage when the mortgaged land is also within the state
and thus directly subject to taxation. This is a desirable
development, but we ought to go still further, so that the holder of a
mortgage would not be taxed whether or not he lived in the same state
as 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 taxed
twice.
Some authorities believe that the tax rate on land ought substantially
to be increased, when it appears that such land is being held for
speculative purposes. To encourage improvements, it is also proposed
that certain permanent improvements on land be temporarily exempted
from taxation. Lastly, it would appear socially desirable to levy
special taxes on urban sites, so as to secure for the community some
share of the future unearned increment.
405. THE INCOME TAX.--All taxes ultimately come out of income, but
when we speak of an income tax we refer to a direct levy upon income
as it arises, chiefly in the form of wages, salaries, and profits. A
Federal income tax was levied during the Civil War, but in the
nineties the Supreme Court held that such a tax violated the
constitutional provision that Congress shall not lay direct taxes
except in proportion to the population of the states. In 1913 the
Sixteenth Amendment to the Constitution permitted Congress to lay and
collect taxes on incomes without apportionment among the several
states, and without regard to any census or enumeration.
Since 1913 Congress has passed several income tax laws, and a number
of the states have also adopted this form of taxation. The essential
features of these laws are as follows. Incomes below a certain amount
are exempt from taxation. The limit of untaxable income is raised for
married persons living together. In calculating their net income,
individuals may make allowance for debts, business expenses, and
certain other items. Upon all taxable income above a certain minimum
there is then levied a flat rate, constituting a "normal" tax. Where
incomes exceed a certain amount, there is an additional tax. Thus the
income tax is said to be "progressive," that is, the larger the income
the higher the tax rate.
Many benefits are claimed for the income tax. It falls upon those best
able to pay, and it is not easily evaded or shifted by the person upon
whom it is levied. It is elastic and can readily be increased or
reduced according as revenue needs change. Its progressive character
is a feature which is considered socially desirable.
The chief defects of the income tax are two. In the first place, the
effectiveness of the tax depends upon the willingness of the
individual to declare his full income. This is not always done,
especially where the income tax is regarded as an undue interference
in the private affairs of the individual. Second, wealthy individuals
often migrate to states where there is either no income tax or only a
relatively light one. This last defect of course applies only to the
state income tax.
406. THE INHERITANCE TAX.--Taxes upon inheritances have come into
prominence since the opening of the twentieth century. Since 1916 the
Federal government has levied an inheritance tax. At the present time
most of the states also levy this form of tax upon property passing by
will or under the inheritance laws of the state. The essential
features of the tax are everywhere the same. Small legacies are
generally exempt. Legacies to direct heirs are either exempt, or are
taxed at a lower rate than are legacies to collateral heirs. The rates
are progressive, that is to say, they increase with the size of the
legacy.
Many benefits are claimed for the inheritance tax. It brings in a
large revenue, and falls upon those who are best able to pay. The tax
cannot be shifted and it cannot easily be evaded. It is easily
assessed and collected, because all wills must pass through the
probate court. It is held that the state has a social claim upon the
property of an individual who has amassed wealth under the protection
of its laws, and that this property ought not to be transferred intact
to those who did not aid in its accumulation.
If carried too far the inheritance tax would undoubtedly discourage
the accumulation of wealth, but tax authorities are already guarding
against this danger. On the whole, the inheritance tax is an important
addition to our tax system. Its scope is being rapidly extended: rates
are being raised, the principle of progression is being more
frequently applied, and exemptions allowed direct heirs are being
reduced. The tax is increasingly used in the effort to redistribute
unearned wealth, though the extent to which this is true depends very
largely upon local sentiment.
407. CORPORATION TAXES.--The rapid growth of American industry has
been accompanied by an enormous increase in the number and importance
of industrial corporations. The proper taxation of these bodies is now
challenging the attention of both state and Federal governments.
The difficulties of taxing corporations are two: First, how to prevent
that form of double taxation which results from the fact that several
states may levy taxes of varying weight upon interstate corporations.
Second, how to prevent that form of double taxation which imposes a
burden both upon the tangible property of the corporation and upon the
stocks and bonds representing ownership in that tangible property.
A number of taxation experts suggest meeting the last-named difficulty
by exempting from taxation stocks, bonds, and other securities, and by
imposing, instead, a tax directly upon the capitalization of the
corporation itself. In the case of corporations which are local and of
moderate size, this might be effected by the reform of tax laws within
a single state. Where, on the other hand, corporations are distinctly
interstate in character, such reform would require either a careful
coördination of the tax laws of the several states, or a corporation
tax 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 taxes
on interstate corporations to be levied solely by the Federal
government.
It is claimed by some economists that the virtual impossibility of
effectively coördinating the tax laws of the various states renders it
imperative that all interstate corporations be taxed solely by the
Federal government. In such a case the Federal government would be
taxing interstate corporations partly for its own benefit, and partly
as the agent of the various states. It is said also that such a
Federal tax should be levied on corporations at the source, _i.e._
upon capitalization rather than upon stocks and bonds. Being applied
at the source, it would reach all forms of corporation wealth. It
would be easy and economical to administer. So far as corporations are
concerned, a purely Federal tax on interstate corporations might
prevent both forms of double taxation.
Even though the states consented to a purely Federal tax on interstate
corporations, however, it might prove difficult for state and Federal
governments to agree upon a fair division of the joint revenues
derived 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 to
fiscal 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 a
satisfactory tax system in this country?
12. To what extent is the general property tax being reformed or
abolished?
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 its
dangers?
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_, chapter
xvii.
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 progressive
taxation. (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 is
meant 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 and
providing 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, license
tax, transaction tax, sales tax, luxury tax, mortgage tax, franchise
tax, excess profits tax.
3. Are tax assessors in your locality appointed or elected? Are there
county or state boards of equalization in your state? How are these
boards chosen?
4. Interview a friendly tax assessor concerning the difficulties of
determining property values. Does he believe that people
systematically undervalue their own property? What proposals does he
make for the reform of the present method of assessment?
5. Interview a friendly taxpayer. What is his attitude toward the poll
tax? the general property tax? the income tax? What proposals does he
make 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 the
United States_, chapter xxix.)
11. Public expenditures. (Ely, _Outlines of Economics_, chapter
xxxi; 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 Cost
of Our National Government_.)
12. The power of Congress to tax. (Young, _The New American
Government and its Work_, chapter v; Beard, _American Government and
Politics_, chapter xiii.)
13. Taxation in American cities. (_Annals_, vol. xxviii, pages 155-
172.)
14. Personal taxes. (Fetter, _Modern Economic Problems_, chapter
xviii.)
15. The poll tax. (Bullock, _Selected Articles on Public Finance_,
chapter x.)
16. Breakdown of the general property tax. (Taussig, _Principles of
Economics_, vol. ii, chapter lxix.)
17. Protection against improper state taxation. (Young, _The New
American Government and its Work_, chapter xxv.)
18. Double taxation. (Seligman, _Essays in Taxation_, chapter iv.)
19. The corporation tax. (Seligman, _Essays in Taxation_, chapters vi
and vii.)
20. Separation of state and local revenues. (Seligman, _Essays in
Taxation_, 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_, chapter
vii.)
23. The excess profits tax. (_Annals_, vol. lxxvii, pages 147-159.)
24. The incidence of taxation. (Plehn, _Introduction to Public
Finance_, 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 payment
of taxes according to the benefit derived, or payment according to
ability?
27. What is the remedy when individuals conceal from the tax
authorities the amount of their intangible wealth?
28. Does the income tax constitute an undue interference in the
private affairs of the individual?
29. To what extent does the inheritance tax tend to discourage the
accumulation of wealth?
30. To what extent should the poor be taxed?
31. Can the adequate taxation of corporations be secured without
resorting to a corporation tax which shall be purely Federal in
character?
32. Should the national debt be paid? (See Bullock, _Selected Articles
on Public Finance,_ chapter xxiv.)
B. MAKING GOVERNMENT EFFECTIVE
CHAPTER XXXIII
WHO SHALL SHARE IN GOVERNMENT?
408. DISTINCTION BETWEEN CITIZENSHIP AND THE SUFFRAGE.--Citizenship
implies membership in a nation. A citizen owes allegiance to his
government, and in return is entitled to the fundamental advantages of
organized government, such as the protection of life, liberty and
property at home and abroad. Suffrage, on the other hand, is the
privilege of sharing in government by the exercise of the vote. Most
voters are also citizens, but less than a third of the citizens of the
United States are voters. Citizenship is determined by the Federal
authorities, the Constitution declaring that all persons born or
naturalized in the United States are citizens thereof. The suffrage is
a privilege which is controlled by the individual states, subject to
certain regulations imposed by the Federal government.
409. SIGNIFICANCE OF THE SUFFRAGE.--In a representative democracy such
as the United States, the question of the suffrage is of fundamental
importance. Public officials are agents which have been chosen to
administer the affairs of government. Every public official in the
United States is either chosen directly by the people, or is chosen by
agents who themselves have been selected at the polls. The right to
vote is thus the right to share in the control of government. And not
only are voters making rules and regulations for their own government,
but they are governing those citizens to whom the suffrage has not
been extended. It is because of this double responsibility resting
upon the American voter that a fundamental problem of effective
government is concerned with the suffrage.
410. SUFFRAGE IN THE SEVENTEENTH AND EIGHTEENTH CENTURIES.--In
colonial times the American suffrage was narrowly restricted. Though
the theory that all men were free and equal was known in political
circles, the actual conduct of government was largely in the hands of
the propertied classes. With a few exceptions, no Negro was allowed to
vote. As a general rule, women were also debarred from the suffrage.
Even white adults were denied the exercise of the suffrage unless they
could meet certain property and religious qualifications.
The Declaration of Independence laid emphasis upon the principle that
governments derive their just powers from the consent of the governed.
Nevertheless this principle was not held to apply to the internal
politics of the American states, and so there was at this time no
widespread feeling that all adults had an equal right to share in
government. In an important sense, the American Revolution was fought
to maintain the principle that England could not govern the colonies
without their consent. But here again it should be noted that none of
the states that won independence interpreted that principle to mean
that all of their free adult citizens had a right to govern themselves
through the vote. Colonial standards of suffrage were largely carried
over into our earlier national history, and in 1789 probably less than
five per cent of the American people were voters. Interpreted in terms
of the suffrage, American democracy was still very narrowly
restricted.
411. SUFFRAGE AS A NATURAL RIGHT.--According to the doctrine of
natural rights, all men are born free and equal, and are entitled to
certain fundamental rights of which they may not be deprived. Many of
the colonists were familiar with this theory, but not until after 1800
did it constitute an important basis for maintaining that all adult
white males were entitled to the suffrage. After the opening of the
nineteenth century, however, it was more common for propertyless men
to maintain that just as they had a natural right to life, liberty,
and the pursuit of happiness, so they had a natural right to the
suffrage. The principle that governments derive their just powers from
the consent of the governed was by many interpreted to mean that men
possessing property had no right to govern men who could not meet the
property qualifications accompanying the suffrage. The cry of "No
taxation without representation," was also raised in the interests of
white adult males who paid taxes, but who were not allowed to vote.
412. EXTENSION OF THE SUFFRAGE IN THE NINETEENTH CENTURY.--During the
first three quarters of the nineteenth century, the suffrage widened
steadily. Religious qualifications practically disappeared before
1850. After a long drawn out struggle most of the eastern states
practically eliminated the property qualification from their suffrage
laws. This change was due, in large part, to the influence of the
doctrine of natural rights. There were additional factors, of course.
In many places along the Atlantic seaboard, for example, the extension
of the suffrage was somewhat in response to the influence of the
doctrine of natural rights, but it was also partly due to the economic
pressure exerted by the increasing number of landless laborers who
were crowding into the manufacturing cities and towns.
The extension of the suffrage during this period is closely associated
with the development of the West. Whereas the eastern states removed
property and religious qualifications only after a struggle, many
western states imposed few or no restrictions upon the suffrage, but
from the start were committed to the principle of equality at the
polls. The doctrine that governments derive their just powers from the
consent of the governed was popular in the West; indeed, it was here
that the doctrine was first applied to the problem of suffrage in a
definite and practical manner. In the more sparsely settled portions
of the country, able-bodied men were more important than social
distinctions and religious ties, so much so, in fact, that some of the
western states attracted settlers by giving the vote to aliens who had
announced their intention of becoming citizens. After the Civil War
some of the southern states made similar advances to European
immigrants.
After the Civil War the suffrage movement was profoundly affected by
the Negro question. The Thirteenth Amendment, adopted in 1865, had
merely abolished slavery. In the subsequent discussion over the status
of the Negro, some white men held that the theory of natural rights
entitled the freed Negroes to the suffrage. This view was opposed by
many, particularly in the South. Nevertheless, in 1868 the Fourteenth
Amendment to the Constitution provided that any state denying any of
its male adult citizens the right to vote might suffer a reduction in
its congressional representation. Two years later (1870) the Fifteenth
Amendment went a step further, and declared that the right of citizens
of the United States to vote might not be denied or abridged on
account of race, color, or previous condition of servitude.
The nineteenth century also witnessed an increased interest in woman
suffrage. The proposition was not unknown even in colonial times, but
the earlier state constitutions and statutes had almost invariably
excluded women from the vote. After the middle of the century the
woman suffrage movement grew rapidly, stimulated, to a considerable
extent, by the movement for abolition and Negro suffrage. In 1852
Susan B. Anthony assumed leadership of the woman suffrage movement,
and in 1875 she drafted a proposed amendment to the Federal
Constitution which would provide for woman suffrage throughout the
country. The territory of Wyoming had extended women full suffrage in
1869, and a decade later the right to vote in school elections had
been extended the women of Michigan, Minnesota, and several other
States. By 1896 Colorado, Idaho, and Utah had extended full suffrage
to women.
413. DECLINE OF THE NATURAL RIGHTS THEORY.--During the latter half of
the nineteenth century the doctrine of natural rights was of declining
importance as a basis of the suffrage. The doctrine was illogical, for
not even its most ardent advocates would go so far as to maintain that
paupers and mental defectives had an inherent right to vote. Nor did
anyone claim that persons under twenty-one years of age had such a
right.
As time went on, the connection between the suffrage and the doctrine
of natural rights seemed more and more remote. Men came gradually to
believe that the suffrage was not a right but a _privilege_, and that
the capacity of the individual to use the vote in the public interest
was the factor which should determine whether or not he should enjoy
the suffrage. This changed viewpoint reflected itself in several
important shifts in the suffrage movement.
414. SHIFTS IN THE SUFFRAGE MOVEMENT.--To a considerable extent the
decline of the doctrine of natural rights was accompanied by increased
restrictions upon the right to vote. We have noted that many western
and a few southern states formerly made a practice of extending the
vote to aliens who had announced their intention of becoming citizens.
After the seventies there was a tendency for such states to withdraw
this privilege, and to make citizenship a prerequisite to voting. One
reason for this changed attitude was that as time went on immigrant
labor was less in demand in the West and South. Still another factor,
however, was the abuse of the ballot among unassimilated immigrant
groups in our cities.
After the middle of the nineteenth century, there was a growing
feeling, originating in New England and spreading westward, that
illiterate voters were a menace to sound government. Accordingly,
educational tests were imposed in a number of states. These tests
generally require voters to be able to read and write.
The enfranchisement of the Negro was followed by reaction. The
exercise of the suffrage by ignorant Negroes suddenly admitted to full
suffrage, resulted in gross abuses of political power. As a result
many southern states eventually passed laws which virtually deny the
vote to the larger part of the possible Negro electorate. In some
cases white election officials administer the educational test so
strictly as to exclude most Negroes. In other cases a property or poll
tax qualification has been used to exclude large groups of shiftless
Negroes. In still other cases a "grandfather clause" in the state
constitution exempts from the educational test all who are descendants
of persons voting before the Civil War. This allows white illiterates
to vote, but excludes illiterate Negroes.
On the other hand, the cause of woman suffrage was greatly stimulated
by the decline of the doctrine of natural rights and the rise of the
theory that civic capacity should determine the suffrage. Particularly
after 1900 did the agitation take on national importance. A national
Woman Suffrage Association was organized, and powerful pressure was
brought to bear upon persons of political influence. Between 1910 and
1912 Washington, California, Oregon, Kansas, and Arizona were won to
the cause of woman suffrage. Finally in August, 1920, the amendment
which Miss Anthony had drafted in 1875 was ratified and declared in
force. Women are now allowed the vote on the same terms as men.
415. PRESENT RESTRICTIONS ON THE RIGHT TO VOTE.--The suffrage in the
several states at the present time may be summarized as follows:
In every state voters must be at least 21 years of age. In a few
states the vote is extended to aliens who have declared their
intention of becoming citizens. In every state a period of residence
is required of voters, the usual period being between six months and a
year. Educational qualifications are imposed in about a third of the
states. A number of southern and a few northern states require voters
to be assessed for a poll tax. In practically every state such
abnormal persons as the feeble-minded, the insane, paupers in
institutions, and certain types of criminals are excluded from the
suffrage. Untaxed Indians, and foreign-born Chinese and Japanese do
not enjoy the suffrage.
416. PRESENT STATUS OF THE SUFFRAGE MOVEMENT.--The suffrage movement
has steadily increased the number of potential voters until at the
present time there are more than 30,000,000 persons in the United
States who are entitled to the vote. The important groups of the adult
population have been enfranchised, but the suffrage movement still
involves important problems. In view of our changing attitude toward
the 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 fact
that naturalization automatically makes voters of many individuals, to
what extent ought the grant of citizenship to be determined by the
individual's promise as a voter? Fourth, what should be our attitude
toward Negro suffrage?
Let us summarize the fundamental considerations which must be borne in
mind in discussing the four problems suggested above. This done, we
may briefly consider the most pressing of these questions, _i.e._ that
involving Negro suffrage.
417. THE SUFFRAGE IS A PRIVILEGE AND NOT RIGHT.--The significance of
the difference between citizenship and the suffrage should be clearly
understood. Citizenship is a fundamental matter. In return for
allegiance to his government, the citizen may be considered as being
entitled to that measure of protection which is deemed necessary to
his safety and well-being. But though we speak loosely of the "right"
of suffrage, the suffrage is a privilege, not a right. The individual
cannot claim it as a corollary of citizenship. Nor does mere residence
in a democratic country entitle the individual to the ballot. The
safety and well-being of the citizen are not necessarily dependent
upon his exercise of the vote. Indeed, incapable persons may be better
off if they are excluded from the suffrage, provided, of course, that
the voting class holds itself responsible for the government of the
excluded groups. Fitness alone justifies the suffrage.
418. WHAT CONSTITUTES FITNESS?--The ballot cannot be exercised by the
unfit without endangering the whole fabric of government. But what is
the standard of fitness? The history of the suffrage in the United
States throws some light upon this question. In colonial times the
plea of the propertied classes was that fitness was primarily a matter
of racial origin, the ownership of property, or church affiliation.
According to the theory of natural rights, fitness was vaguely
associated with manhood and citizenship. More recently we have come to
believe that while many factors influence the capacity of the voter,
such factors as religion, racial origin, and ownership of substantial
amounts of property, are not vital. A definite standard of fitness has
never been established, but at least we can say that fitness means
both the desire and the capacity to serve the state by an honest and
intelligent use of the ballot.
419. THE QUESTION OF NEGRO SUFFRAGE.--We are beginning to suspect that
the attention attracted by Negro suffrage is due, not so much to the
injustice of disfranchising the Negro as to the spectacular
circumstances surrounding the American Negro. It is unjust, of course,
to exclude the Negro from the vote merely because of his race. But
exclusion of Negroes not qualified to make an intelligent use of the
ballot is no more unfair than are the educational tests imposed by
many northern states. To exclude illiterate Negroes from the vote, and
at the same time to allow illiterate whites the ballot, is, on the
other hand, manifestly unfair. But far more productive of good than
debating this unfairness is the attempt to fit the Negro for the vote
as a prerequisite to his exercise of it. During this preparation the
Negro should have before him the incentive of securing the ballot when
he has made sufficient progress in education and civic responsibility.
420. PROBLEM OF AN INTELLIGENT ELECTORATE.--The problem of building up
an intelligent electorate gives rise to two additional questions:
First, how may the enfranchised classes be trained to a full
realization of their civic responsibilities? Second, to what extent is
intelligent voting dependent upon actual exercise of the suffrage? The
first question has been treated elsewhere, and we may close this
chapter with a brief consideration of the second question.
It is maintained by some that no one should be admitted to the
suffrage who has not first demonstrated his capacity to use the vote
intelligently. Others reply that this capacity comes only through
actual exercise of the vote. The solution of this problem probably
lies in a judicious combination of theory and practice. A boy cannot
learn to swim by standing on the bank and forever listening to
theoretical instruction; on the other hand, it may prove fatal to push
him into deep water without preparation for that step. Instruction and
practice must go hand in hand, wisely interwoven and harmonized.
Similarly, it would seem, one way to secure an intelligent electorate
is to admit individuals to the suffrage only when they demonstrate a
minimum capacity for civic service, but at the same time to recognize
that _full_ moral development can come only through actual exercise of
the 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 the
nineteenth 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 a
right?
16. What is meant by saying that "fitness" is the basis of the
suffrage?
17. What can be said as to the question of Negro suffrage?
18. To what extent does intelligent voting depend upon actual exercise
of 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, pages
64-65.)
2. Name some groups of people who were excluded from the suffrage in
colonial times. (Porter, page 5.)
3. What were some of the early arguments for giving propertyless men
the 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, pages
15-16.)
10. Discuss the educational test. (Cleveland, pages 172-174.)
11. To what extent is bearing arms against the country a
disqualification 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 not
allowed to vote. What is the proportion of these classes to the total
population of the community? What per cent of these excluded classes
are aliens? What is the basis for exclusion in each case? Would you
favor the extension of the vote to any of these groups? Explain.
II
6. Colonial suffrage. (McKinley, _The Suffrage Franchise in the
Thirteen English Colonies in America_; Cleveland, _Organized
Democracy_, chapter x.)
7. Dorr's Rebellion. (Consult any standard text on American history or
an 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 his
advantage to make frequent use of the _Cyclopedia of American
Government_, edited, in three volumes, by A. C. McLaughlin and A. B.
Hart. N.Y. 1914. Appleton and Company. This cyclopedia will furnish
considerable material for students seeking either general information
on 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 the
suffrage. (Kaye, _Readings in Civil Government_, pages 113-116.)
13. Negro suffrage. (Consult an encyclopedia, or any standard work on
American 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 influential
in American political discussions?
17. Do you favor an amendment to the Federal Constitution, providing
that no state may extend the suffrage to persons who are not citizens
of the United States?
18. How long should a potential voter be required to live in a state
before being allowed to exercise the ballot?
19. To what extent does the educational test show the fitness of the
individual to make the right use of his vote?
20. Should all convicted criminals be denied the vote during the
remainder 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 defined
as a voluntary association of voters, entered into for the purpose of
influencing elections to public office. The individuals comprising a
party have certain broad political principles in common, and these
they seek, by organized effort, to have applied to actual government.
Just as individuals differ on matters of business or religion, so it
is human nature for the voters of a community to form varying opinions
as to the nature, functions, and methods of government. And just as
men tend to draw away from those with whose opinions they do not
agree, so they tend to draw toward those with whom they are in
agreement, and with whose coöperation they may advance principles of
mutual interest. It is this natural tendency of men, first, to differ
with one another, and second, to form associations for the advancement
of mutual aims, that has led to the formation of political parties.
422. DEVELOPMENT OF PARTIES IN THE UNITED STATES.--The American
political party is older than the nation. Differences of political
opinion divided the American colonists into Whigs and Tories. Later,
party spirit was manifested in the formation of the Revolutionary
committees of correspondence. The struggle over the Constitution of
1787 divided men into Federalists and Anti-Federalists. The question
of a broad or a strict construction of the constitution, the tariff,
and the problem of slavery in the territories,--these are a few of the
great national issues that have influenced party lines. Before the
Civil War party spirit had extended to all parts of the country,
evidencing itself in a number of party organizations. Many of these
organizations proved temporary, but since the Civil War party lines
have been relatively fixed. For more than a half century there have
been two great parties, the Democratic and the Republican. Third
parties have been either temporary or relatively unimportant.
423. PARTY ORGANIZATION.--There is no constitutional basis or
provision for American political parties, nevertheless each of the
great parties has built up a powerful organization which coördinates
party members in every part of the country. In practically every
township, village, election district, and city ward there are party
agents and local committees whose work it is to promote the interests
of the party both at election time and between elections. The local
party workers constitute a link between individual voters and the
county or State committees, while these latter groups in turn connect
with the national committee of the party.
It is the work of all those officially connected with this centralized
organization to win adherents to the party standard, to place issues
before the voters, to stimulate interest in candidates, to organize
meetings and clubs, to collect funds for party support, to secure the
registration of voters, and to see that they get to the polls. Party
opinion is formed by means of personal contacts, campaign literature,
speeches, parades, and every manner of propaganda. Party opinion is
formally 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 party
performs three great services. [Footnote: The following arrangement of
the services of the political party was suggested to me by Professor
W. B. Munro, of Harvard University. For a fuller discussion see
Chapter XXII of his _The Government of the United States_, The
Macmillan Company, New York, 1919.]
The first of these is that the party provides machinery which bridges
over the gaps between local, state, and National government.
Similarly, it often serves to bring the executive, legislative, and
judicial branches of government into harmony with one another. The
check and balance system so divides authority in American government
that in many ways the different branches and divisions of government
are uncoördinated. The party facilitates the working of American
government because party members affiliated with one division of
government will tend to coöperate with members of the same party who
may be in control of other divisions of government. For example, a
Democratic governor tends to coöperate with the Democratic members of
the state legislature. Similarly, a Republican President will tend to
work in harmony with those members of his party who are in control of
purely state government.
The second great service performed by the party is that it formulates
public issues and presents them in concrete shape to the voters. Just
as in industry it is the function of the entrepreneur to coördinate
the other factors of production, so in government it is the function
of the politician to act as a coördinator. Indeed, President Lowell
calls the politician a broker, without whose services popular
government would be impossible. If voters went to the polls with no
previous agreement as to candidates or issues, but each determined to
vote for whomever he liked, thousands of names might be found on the
ballot. If a majority were required to elect, no individual would be
chosen. The party thus performs a valuable service by formulating
those principles which will attract the greatest number of voters, and
by definitely associating those principles with particular candidates.
These issues and these candidates the party places squarely before the
electorate, to the exclusion of minor issues and unimportant
candidates. The party is thus a means whereby democracy makes up its
mind, and expresses that mind with a minimum of confusion and
disorder.
The third great service of the political party is that it provides a
means of collective and continuing responsibility in politics. If a
candidate were not affiliated with any political party, misbehavior in
office might result in his removal or in his failure to secure
reëlection. But here responsibility would end. When, on the other
hand, the party selects, supports, and vouches for a candidate, the
party constitutes a definite and permanent pledge to the voters. Thus
the party is stimulated to select its candidates carefully, lest their
incompetence 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 be
pointed out by his political enemies as typical of the party to which
the unfortunate man belongs.
425. THE ABUSE OF PARTY POWER.--Though party government confers
substantial benefits, it is likewise true that the power of the
political party has been frequently abused. American party
organizations sprang up silently, and developed largely without legal
control. Increased power has been accompanied by diffused
responsibility; increased power and diffused responsibility have led
to the abuse of power. The evils of the party are numerous, and only
those of fundamental importance can be discussed in this text. Some of
these evils will appear in successive chapters; a few may be treated
here. In every case, it should be borne in mind, the basic defect of
party government is that the party has tended to use its power
primarily for private rather than public ends.
426. CAMPAIGN CONTRIBUTIONS.--Throughout much of our national history
one of the great evils of the political party has had to do with
contributions to the campaign fund. A few decades ago it was the
custom of parties, not only to accept large sums of money from special
interests, but actually to demand substantial contributions from
railroad and other corporations on pain of unfriendly legislation when
the party got into power. In our cities gambling houses and other
vicious interests habitually contributed to the campaign fund of the
party, with the understanding that the party so supported would, if
successful at the polls, protect these unlawful businesses. Large
amounts were also secured from officeholders who feared to incur the
ill will of the party by refusing to contribute to the campaign fund.
The enormous sums got together from these various sources were used to
finance election contests, the peak being reached when in the
presidential election of 1896 the Republican party is said to have
spent more than $7,000,000. The source of most of this sum was unknown
to the general public.
Fortunately, recent legislation has remedied a considerable measure of
the evils attending unrestricted contributions to the campaign fund.
Laws now prohibit party agents from seeking contributions from the
holders of Federal civil service offices. In 1910 and 1911 Congress
passed Acts providing that a candidate for Representative to Congress
may not expend more than $5000 toward his election, while a United
States 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 the
national committee of each party must now report the entire campaign
fund contributed and expended, giving the name of every individual
contributing over $1000, and also furnishing an itemized statement of
all expenditures over $10. This report is filed with the clerk of the
House of Representatives, and is open to the public.
There can be no doubt but that these and similar laws have operated to
deprive the campaign fund of many of its illegitimate features. Most
of the money now expended by parties is secured from a large number of
small contributions. This not only lessens the control of party
policies by special interests, but it also serves to make the party
more responsible to the rank and file of the organization.
427. PARTY DOMINATION OF NOMINATIONS AND ELECTIONS.--A great problem
of party government is to prevent parties from unduly influencing the
choice of public officials. Leaving until later the general question
of nominations and elections, it may be pointed out here that very
often the whole weight of party power is directed toward securing the
election to office of candidates deemed desirable by the party
machine. The political "boss" has consistently used his power to
manipulate the caucus or the primary so as to advance his own
interests at public expense. Caucuses have been held without proper
notice being given, and party henchmen have been employed to work for
an inside clique or ring. Formerly the rolls of party members were
padded with the names of men dead or absent. Too often elections were
characterized by the stuffing of ballot boxes, the intimidation or
bribery of voters, and the practice of voting more than once. The
effect of these and similar practices has been to thwart the will of
the majority of party members, and to elevate self-interest above the
general welfare.
The last few decades of American political history have been
characterized by a number of laws designed to safeguard the process of
nomination and election. In practically every state in the Union there
are corrupt practices acts which aim not only to prevent the misuse of
the campaign fund, but to control the party in other respects also. In
all but two states registration is a prerequisite to voting. The
introduction into this country of the Australian ballot, and its rapid
spread among the states after 1890, has made the ballot secret. By
preventing the intimidation of the voter, and by otherwise
safeguarding his rights at the polls, ballot reform has remedied many
abuses which formerly resulted in illegal and unrepresentative
elections. Bribery and illegal voting are no longer glaring evils. It
is now the general practice for state laws to provide definite polling
places, and to guard the receiving and counting of the ballots.
428. THE SPOILS SYSTEM.--During the first forty years of our national
life it was taken for granted that subordinate executive officials
should continue in office during good behavior, regardless of a change
of administration. After President Jackson's first term, however, it
became the general practice for the incoming party to use offices to
reward party supporters. Senator Marcy's original declaration that "to
the victor belongs the spoils," was accepted by both Democratic and
Republican parties. Each party, upon coming into power, habitually
turned out appointive officials placed in office by the opposition
party. The positions thus made vacant were filled by individuals from
the ranks of the victorious party.
The spoils system is a serious evil for which party spirit must be
held accountable. By virtue of their patronage, party leaders have
exercised an undue influence over the rank and file of the party.
Frequently a candidate has been named for office, not because he
possessed marked capacity for public service, but because he showed
promise of being a good vote-getter at election time. Very frequently,
therefore, officeholders have secured their positions as the reward of
party support, rather than because of merit. The spoils system has
encouraged the holders of executive offices to pay more attention to
the political fortunes of their party than to their public duties.
Knowing that with a change of administration they would probably be
ousted to make room for the supporters of the rival party, officials
have 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 worst
features. The Civil Service Act of 1883 provided that more than 12,000
Federal executive offices should be filled by competitive examinations
rather than by political appointment. The Federal Civil Service System
has been subsequently extended until at the present time about two
thirds of the administrative offices in the Federal government are
filled on the merit plan. In many sections of the country the merit
plan has also been used to fill state and municipal offices. Though as
yet limited in scope, it would appear that the future will see a
steady expansion of the merit plan in local and state as well as in
the National government.
The essential feature of this system, whether in local, state or
National government, is that officeholders secure their positions on
the basis of individual merit. In theory at least, they are little
affected by changes of administration. Both retention of office and
promotion are on the basis of merit, though the standards by which
appointees are judged have not yet been perfected.
429. EXTENSION OF FAVORS TO SPECIAL INTERESTS.--The tendency of the
political party to extend special favors to private corporations has
constituted a serious evil in American politics. In some instances
powerful corporations have corrupted party politics; in other cases
party organizations have blackmailed corporations under the threat of
unfriendly legislation; in many other cases both party and
corporations have been to blame. In every case, however, the essential
fact is that often the party has been used for the advancement of
special interests rather than to promote the general welfare.
Unfavorable legislation has been bought off and favorable laws secured
by trusts, public service corporations, and other large industrial
interests. Exemption from prosecution has been purchased by gambling
houses and other illegal businesses. Public service corporations have
secured valuable franchises for inadequate consideration. Contracts
for paving and other public works have many times been awarded, not to
firms offering the best work at the lowest price, but to incompetent
or dishonest corporations. Such contracts have been secured by these
corporations because of favoritism shown them by political henchmen
holding office under the spoils system.
Notable headway has been made in checking these evils. The regulation
of the railroads by the Interstate Commerce Commission renders it
difficult for railroad corporations unduly to influence party
policies. Anti-trust legislation has similarly checked the political
activities of other great industrial combinations. There is a growing
tendency for states to pass laws forbidding or restricting the
maintenance of lobbies in legislative halls. Many recent state
constitutions narrowly restrict the franchise-granting power. Corrupt
practices acts forbid party contributions from corporations. The Civil
Service System renders less easy the unfair award of government
contracts to private corporations.
430. DECLINE OF PARTY ABUSES.--It is clear that the development of
party government in this country has been attended by important
benefits and serious evils. But the best authorities agree that the
merits of the party system outweigh its defects. Hence our problem is
not how to destroy the system, but how to regulate it so that we may
secure the benefit of its services and avoid the evil results of its
defects. The experience of the last half century is heartening, and it
must be admitted, not only that party abuses have declined, but that
there is good reason to believe that they will continue to decline. In
our attitude toward the political party we must distinguish, as Burke
distinguished, between the legitimate form of the party and its
perverted form. The perverted forms of party organization call for
censure and attack; the legitimate features of the party deserve our
appreciation and support.
431. DUTY OF PARTY SUPPORT.--Parties seem to be inevitable, for no one
has yet shown how representative government can be carried on without
them. Since the average voter cannot make his influence felt except
through organization and mass action, it is, as a rule, as futile for
the individual to cast his vote regardless of party affiliations as it
is for a soldier to fight without regard for army discipline and
organization. Parties are the result of compromises, and the
individual must be willing to shelve minor issues for the sake of
uniting with his fellows upon vital issues. Ordinarily, the individual
will best perform his civic duties by affiliating himself with some
political party.
But we are coming to believe that the necessity of party support in
National and state elections does not imply that party support is
necessary in local elections. In National politics each party
generally has a definite policy with regard to taxation, the tariff,
armaments, and other debatable issues. Support of the party for the
realization of its program on these matters may be justifiable; on the
other hand, loyalty to party in local politics may be an evil. There
is no Democratic way of cleaning a street, and no Republican method of
fighting a fire. Thus the same citizen who may be under a moral
obligation to support some party in National and state politics, may
be under a similar obligation to make his choice of local candidates
independent of party. A desirable development, in this regard, is the
recent tendency for some municipal elections to be decided regardless
of the party affiliations of the candidates.
432. INTEGRITY IS ABOVE PARTY.--Young people are commonly advised to
affiliate themselves with that political party which seems most
adequately to express their political ideals. But though this is a
method of conserving political energy, no citizen ought to support a
party which has ceased to represent him on matters which he considers
of vital importance. When the party machine sets itself up as an end
rather than a means, and when it emphasizes gain to a few rather than
benefits to the party as a whole, then it is time for honest men to
abandon their party. Integrity is above party. The slogan, "My party
right or wrong" is not only stupid but treasonable. Let the citizen be
eager to coöperate with his fellows for the advancement of common
political views, but let the corrupt party be abandoned.
433. RESPONSIBILITY OF THE INDIVIDUAL FOR PARTY ABUSES.--Nothing
could be more mistaken than the belief that defective government is
due primarily to the existence of an entity known as the political
party. The party is merely an association of individuals, and if it is
corrupt it is so because of the corruption of the individuals
comprising it. It is time that political pessimists stopped blaming
the party for the defects of party government, and time they began to
see that the indifference and shortsightedness of the individual voter
is at the bottom of the trouble. One of the greatest sources of
corruption in American life is the knowledge of political bosses that
many of their adherents will follow the party standard regardless of
its platform and no matter what the character of its candidates. The
party boss is given an opening when individuals neglect to perform
their civic duties. The failure to vote, or to serve in office when
the opportunity offers, the failure either to protest against
candidates chosen unfairly, or to demand an accounting of
officeholders, 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 of
political parties?
7. Name some methods whereby the party boss may dominate nominations
and elections. Outline some laws designed to safeguard nominations and
elections.
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 and
perhaps State elections, and the duty of such support in local
elections.
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, chapter
xl.
3. Guitteau, _Government and Politics in the United States_, chapter
xxxvi.
4. Munro, _The Government of the United States_, chapters xxii and
xxiii.
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, page
313.)
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, pages
126-127.)
8. What are the three contributions of the United States to political
science? (Bryce, vol. ii, page 27.)
9. What are the two aims of party organization? (Bryce, vol. ii, page
32.)
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 safety
of the Republic? (Woodburn, page 338.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Which party occupies the dominant position in the political life of
your community? Find out why it holds this position.
2. The history of third parties in your section, _i.e._, parties other
than the Democratic and Republican parties.
3. The organization of any political party having official
representatives in your community.
4. The work of local political committees in your community
immediately 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 to
determining 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 to
Political Parties and Practical Politics_, chapter i.)
10. Distrust of parties in our early history. (Jones, _Readings on
Parties 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 and
Practical Politics_, chapter xiv.)
12. "Why the best men do not go into politics." (Bryce, _The American
Commonwealth_, vol. ii, chapter lviii.)
13. Campaign contributions. (Brooks, _Corruption in American Politics
and 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 Practical
Politics_, chapter xvi.)
16. How the party machine works. (Ford, _The Rise and Growth of
American Politics_, pages 294-333; Kaye, _Readings in Civil
Governments_, pages 373-377; Jones, _Readings on Parties and
Elections in the United States_, pages 175-178; Lowell, _Public
Opinion 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, _Great
American Issues_, chapter v.)
20. The citizen and the party. (Bryce, _Hindrances to Good
Citizenship_, all; _Hughes, _Conditions of Progress in Democratic
Government_, lectures in and iv; Root, _Addressee on Government and
Citizenship_, 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 political
candidate may spend in the campaign for nomination and election?
23. What are the advantages and disadvantages of placing party emblems
at the head of ballots?
24. To what extent will civic education remedy the evils of the spoils
system?
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 to
abandon his party? Suppose that an individual has severed connections
with a party which he had reason to suppose was corrupt. Under what
circumstances 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 matter
of getting the right men into office, hence one of the most vital
problems in American democracy has to do with the choice of public
officials. In any representative democracy nominations and elections
must be a difficult and complex matter; in the United States the
problem is rendered doubly difficult by the great size of the country,
and by the rapidity with which its population is increasing. In this
country hundreds of thousands of public officials are placed in office
annually, all of them either elected at the polls, or chosen by agents
who are themselves elected.
The problem before us involves four questions: First, how can we
perfect the mechanism by means of which the officers of government are
selected? Second, how can we elect officials who represent a
_majority_, rather than a _plurality_ [Footnote: See Section 444.], of
those actually voting? Third, how can voters be helped to make
intelligent choices at the polls? Fourth, how can we encourage
qualified voters to make an habitual use of the ballot?
435. NOMINATION BY CAUCUS.--One of the earliest methods of choosing
party candidates in this country was by means of the caucus. The
caucus was an informal meeting in which the local members of a
political party nominated candidates for town and county offices.
Candidates for state offices were named by a legislative caucus, in
which legislators belonging to the same party came together and
determined their respective nominations. The legislative caucus spread
to all of the states, and in 1800 was transferred to Congress as a
mode of nominating the President and Vice-President.
After 1825 the caucus declined in importance. In the lawmaking
bodies of both nation and states there continues to be a legislative
caucus, but its influence upon the choice of public officials has
greatly diminished. Outside of the state and National legislatures the
caucus is now found only in towns, wards, and other small areas. In
these areas it is used for the purpose of nominating candidates for
local offices, and for the purpose of electing delegates to nominating
conventions. 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 was
largely superseded by the convention. The convention is a relatively
large meeting of party delegates chosen for the express purpose of
deciding upon party policies and candidates. The convention device was
developed, partly because party bosses had come to dominate the
caucus, and partly because the increasing population of the country
necessitated larger congregations of party members. The convention was
made possible by improved means of transportation, which allowed
relatively large groups of individuals to come together for
deliberative purposes. By 1850 all of the political parties had
adopted the convention plan for the nomination of candidates for most
local, state, and National offices.
437. DECLINE OF THE CONVENTION.--The convention was an improvement
upon the caucus in that it allowed a greater number of party members
to participate in nominations. Unfortunately, delegates to the
convention continued to be chosen in local caucuses, where the party
"ring" or machine usually determined the choice of delegates. Bosses
prepared "slates," bribed delegates, and otherwise manipulated what
was supposed to be an expression of the party will in convention. In
many cases the convention became-merely a cut-and-dried affair in
which party members ratified nominations previously agreed upon by
party leaders.
In the latter part of the nineteenth century, and especially after
1900, these defects stimulated the development of measures designed to
reduce or eliminate the abuses of the convention system. The most
important of these reform measures is the Direct Primary.
438. NATURE OF THE DIRECT PRIMARY.--The terms caucus, primary, and
direct primary are easily confused. We have seen that the local caucus
is now generally known as the primary. The essential difference
between this caucus or primary and the Direct Primary is this: in the
Direct Primary, party members vote directly for the party's candidates
at the forthcoming election; in the caucus or primary, on the other
hand, party members do not vote directly for the more important of
these candidates, but instead vote for delegates to a convention.
Later these delegates meet in convention and there vote directly for
party candidates. Thus the Direct Primary is really an election within
the party, held for the purpose of allowing party members to choose
the candidates who will represent the party at the approaching regular
election. When adopted, the Direct Primary abolishes the convention by
allowing party members to cast their ballots directly for their
party's candidates. Those individuals are nominated who receive a
plurality of all votes cast.
In most states the Direct Primary has recently been placed under
detailed legal control. Such laws generally prescribe the time and
place of holding the Direct Primary, the qualifications of those who
may participate, and the organization and general management of this
party election. There is provision for polling places, official
ballots, and election of officials, just as there is provision for
similar machinery in the regular election which follows the Direct
Primary.
439. EXTENT OF THE DIRECT PRIMARY.--Heralded as a cure for the defects
of the convention, the Direct Primary spread rapidly after 1900. By
1919 every state in the Union had adopted it in some form, and about
forty states were applying the state-wide primary. At first the Direct
Primary was used only to nominate candidates for local offices, but at
the present time state officers, and even Federal Senators and
Representatives, are often nominated by this method. In more than a
third of the states the voters at the Direct Primary are allowed to
express their preference directly for one of the candidates for the
presidential nomination. Altogether, the Direct Primary has largely
supplanted the convention in about three fourths of the states.
440. ADVANTAGES CLAIMED FOR THE DIRECT PRIMARY.--A number of important
advantages are claimed for the Direct Primary. It is said that the
device reduces the power of the party boss, and insures democratic
control within the party. Party members are more interested in the
Direct Primary than in the local caucus or primary because in the
Direct Primary they actually aid in the direct selection of party
candidates. The local caucus or primary, on the other hand, does not
directly select the more important party candidates, but can only
choose delegates to a nominating convention. Because the Direct
Primary 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 than
would otherwise be possible. Better candidates are secured by means of
the Direct Primary, it is claimed, because the nomination of
individuals depends upon the presentation of their claims to the
voters, rather than upon winning the favor of party bosses.
441. OBJECTIONS URGED AGAINST THE DIRECT PRIMARY.--The opponents of
the plan claim that the Direct Primary has serious faults. It is said
that in supplanting the convention the Direct Primary has made more
difficult the exchange of views and opinions among party members. It
is declared that the Direct Primary has disorganized the party and has
therefore broken down party responsibility. It is claimed that the
Direct Primary has not eliminated the boss, for rather than voting
directly for candidates of their own choice, electors must make a
selection from a list of candidates previously arranged by party
leaders. All of these candidates may be objectionable to the voter. It
is also pointed out that many worthy candidates have not the money to
defray the expense of competing in the Direct Primaries. Frequently
the "ring" brings out a number of candidates to divide the voters,
while the henchmen of the ring concentrate their votes upon one
man. Lastly, it is pointed out, the excessive number of candidates to
be selected renders it impossible for the average individual to make
an intelligent selection. In such a case, the average individual
attends the Direct Primary only to confirm the choice of party
leaders.
442. OUTLOOK FOR THE DIRECT PRIMARY.--Although there is much to be
said for and against the Direct Primary, the belief is gaining ground
that this device does not offer the final solution of the difficulty
which led to its establishment. After an exhaustive study of the
subject, Professor Munro concludes as follows: "In a word, the primary
seems to afford protection against the worst fault of the convention,
which was the frequent selection of incapable and corrupt candidates
at the behest of a few political leaders. But it has not, in twenty
years or more of experience, demonstrated that it can achieve positive
results of a measurably satisfactory character. It has not rid the
state of boss domination; it has increased the expense which every
candidate must incur, and it gives a marked advantage to the man whose
name is well known to the voters, whether he be a professional
politician or not. To say that the primary secures on the average
somewhat better results than the old convention may be stating the
truth, but it is not high praise."
443. NOMINATION BY PETITION.--The system of nomination by petition
came into use between 1880 and 1890. It provides that candidates may
be placed in nomination by filing with some specified officer
nomination papers, or petitions, signed by a specified number of
qualified voters. The filing of these papers entitles the candidates
named thereon to have their names printed upon the official ballot.
The merit of this device is that it prevents the party machine from
dictating the choice of candidates, and that it enables independent
candidates to be brought forward. On the other hand, it has encouraged
the circulation of petitions for hire.
On the whole this method of nomination is proving more and more
popular in local elections. It seems well adapted to the needs of
municipalities, for it reduces partisanship to a minimum. It is said
that in some cases it practically eliminates national politics from
local elections. The supporters of nomination by petition are
increasing, and it is now proposed to apply it to all local and state
nominations. In such an event the Direct Primary would be radically
modified, or even abolished.
444. MAJORITY REPRESENTATION.--How can we make certain that an
individual nominated or elected represents a majority of those voting?
When there are only two candidates, the one receiving the largest
number of votes receives both a plurality and a majority. But when
there are several candidates, it often happens that the individual
receiving the largest number of votes does not receive a majority.
Suppose, for example, that 100,000 votes are cast, and that A receives
20,000, B 25,000 C 30,000 and D 25,000. Ordinarily C will be declared
successful because he has received a _plurality_ of the votes cast.
But he has not received a _majority_ of the votes cast. This custom of
declaring successful the candidate receiving a plurality constitutes a
defect in our representative system, since a plurality candidate may
represent only a small minority of those actually voting.
Several attempts have been made to remedy this defect. In some
southern states it is the practice to require an absolute majority for
election. If no aspirant receives a majority, a second ballot is taken
on the two candidates standing highest on the list. In a number of
northern cities, the evil of plurality voting has been attacked
through the _preferential voting_ device. This system of voting allows
the voter to designate not only his first, but his second and third
choices as well. If any candidate receives a clear majority of first
choice votes, he is declared elected. But if no one receives such a
majority, the second choices are added to the first choices. If this
further calculation does not give any candidate a majority, third
choices 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 sure
that successful candidates represent a majority of those voting is the
problem of the adequate representation of the minority. The most
notorious phase of this problem has grown out of our custom of
electing one national Representative from each of the congressional
districts into which every state is divided. Often gerrymandering
[Footnote: The origin and nature of "gerrymandering" are discussed in
Chapter XLII, Sections 542 and 543.] is resorted to, that is to say,
congressional districts are so arranged as to give the minority party
overwhelming majorities in a few districts, while the dominant party
is allowed to carry the remaining districts by very small majorities.
The result is gross misrepresentation in Congress, because the party
having a bare majority often secures a large percentage of the
representatives, while the minority is very inadequately represented.
Such misrepresentation also appears in connection with the choice of
representatives to the state legislatures.
In the attempt to remedy this type of misrepresentation various plans
of _proportional representation_ have been put forth. In Illinois
members of the lower house of the state legislature have long been
chosen as follows: Each state senatorial district is given the right
to elect three assemblymen. Every elector in the district has the
right to cast three votes, one each for three different persons, or
two votes for one candidate and one for another, or all for one
candidate. By concentrating its votes upon one candidate, an average
minority can be sure of at least one representative in each district.
A plan employed in several other states likewise aims to give each
political party representation proportional to the number of votes
cast by the party, regardless of whether the number is a minority or a
majority. The principle of proportional representation, if fully
worked out, and if made simple enough to be comprehended by the
average voter, would insure majority rule and at the same time allow
the adequate representation of minorities.
446. OBSTACLES TO INTELLIGENTY VOTING.--Several obstacles to
intelligent voting in this country are intimately connected with the
long ballot. [Footnote: The term "long ballot" refers to the fact that
so many officials are elective that the ballot on which their names
appear is often of great length. The term "short ballot" refers to a
reduction of the length of this ballot by making fewer officers
elective.] The wave of democracy which swept the country in the last
century had the double effect of increasing the number of elective
offices, and of shortening the terms during which officials were
allowed to hold office. A greatly lengthened ballot, together with the
great frequency of elections, has made it impossible for the average
voter to exercise proper judgment at the polls. The difficulty of
investigating the merits of the numerous candidates, or even of
becoming familiar with their names, has discouraged many from voting.
Of those who still pretend to reach independent decisions regarding
candidates and issues, a considerable number really rely upon the
direction and advice of professional politicians. The long ballot is
the enemy of democracy, since it allows politicians, rather than the
masses, to control actual government.
447. SHORTENING THE BALLOT.--The chief remedy for these evils is the
short ballot. The essential features of the short ballot plan are as
follows: Popular elections should be resorted to only for the purpose
of choosing those officials who have to do with public policies. For
example, state voters ought to select only the governor, lieutenant
governor, and members of the legislature; city voters ought to choose
only the mayor and council; [Footnote: Where this form of municipal
government is still employed.] while county voters ought to confine
their attention to a small group of county commissioners or
supervisors. All other officials ought to be appointed, either
directly by chief executive officers, or by means of the merit plan.
Along with the shortening of the ballot, we should be increasingly
willing to allow officials to hold office for longer terms. A
supplementary feature of great value would be the establishment of
such means of popular control as would protect the public against
abuse of power by officials to whom these longer terms had been
extended.
448. MERITS OF THE SHORT BALLOT.--There can be little doubt that a
drastic shortening of the ballot would work a great improvement in our
electoral system. If the vast majority of officials were made
appointive, the voter could give more time and thought to the
consideration of a few important elective officials. A short ballot
would lessen the possibilities of manipulation by rings and bosses.
Unquestionably the interest of the voter would be quickened, since his
influence upon the political life of his community would be more
apparent. And not only would the short ballot make government more
representative, but it would help to make it more responsible.
If the majority of the administrative officials who are now elected
were made appointive, responsibility for their conduct in office could
be concentrated upon the chief executive officer appointing them.
449. THE NEGLECT TO VOTE.--The last of the vital questions arising in
connection with the choice of public officials is the matter of
encouraging the enfranchised classes to use the ballot. The long
ballot and the domination of party politics by rings and bosses
discourage many from voting, nevertheless it is probably true that the
slackness of the individual is the chief reason why voters neglect to
use the ballot. This slackness may take the form of personal
indolence, or of indifference to civic duty, or of preoccupation with
the press of personal business. When individuals are busy with their
private affairs the time needed for intelligent political action is
often begrudged. Again, the duty to vote is not always a compelling
one. When a duty is shared with innumerable other people, it appears
less of a personal duty; when the individual notes that his fellow-
citizens neglect that duty, his own tendency toward slackness is
encouraged. In a democracy, as Lord Bryce points out, "everybody's
business becomes nobody's business."
450. IMPORTANCE OF CIVIC EDUCATION.--The perfecting of our nominating
and elective machinery, together with the shortening of the ballot, is
doing a good deal to awaken interest in the proper use of the vote.
But the problems of democracy cannot be solved by purely mechanical
means. If our voters are to regard the use of the ballot as a civic
duty, we must rely largely upon civic education. Young people, soon to
be voters, must be impressed with the responsibilities of democracy.
They must be taught the vital importance of using the vote. In Belgium
and Spain it is customary to penalize individuals for neglecting to
vote, but the idea of compulsory voting is repugnant to the American
spirit. Moreover, law alone can neither build up nor sustain
individual morality. The remedy for indifference to the ballot would
seem to be not law, but the education of voters to their moral
obligation toward the government under which they live.
QUESTIONS ON THE TEXT
1. What four questions arise in connection with the choice of public
officials?
2. Describe nomination by caucus. To what extent is this method still
used?
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 Direct
Primary?
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 the
ballot?
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,_ chapter
xxxvii.
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 or
less 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, pages
80-83.)
6. Describe the work of the state nominating convention. (Guitteau,
pages 467-468.)
7. Outline the procedure in the national convention. (Guitteau, pages
471-472.)
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 is
used. (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 your
state.
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 of
American Politics_, chapter xvi; Ray, _Introduction to Political
Parties and Practical Politics_, chapter v; Woodburn, _Political
Parties and Party Problems in the United States_, chapters xi-xiii.)
9. The nominating convention at work. (Bryce, _The American
Commonwealth_, vol. ii, chapter lxx; Ray, _Introduction to Political
Parties and Practical Politics_, chapter viii.)
10. Structure of the Direct Primary. (Ray, _Introduction to Political
Parties and Practical Politics_, chapter vi.)
11. How the Direct Primary works. (Cleveland, _Organised
Democracy,_ chapter xvii; Woodburn, _Political Parties and Party
Problems 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 State
Governments,_ 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 in
Political Science,_ pages 322-325.)
16. The nature of proportional representation. (Jones, _Readings on
Parties 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 Convention
Bulletins,_ 1917.)
19. The gerrymander. (Woodburn, _Political Parties and Party Problems
in 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 National
elections at different times.
CHAPTER XXXVI
HONESTY AND EFFICIENCY IN OFFICE
451. MAGNITUDE OF THE PROBLEM.--How can we insure the honest and
efficient administration of American government? Civic education and
the perfection of nomination and election devices will do much toward
securing this end, but there remains a troublesome question. This has
to do with reorganizing our legislative and administrative machinery,
so that public officials may be allowed or encouraged to perform their
duties in a responsible and effective manner.
The problem is a vast one, the adequate treatment of which would
require volumes. In this chapter, therefore, it will be necessary to
confine the discussion to a few of the more pressing aspects of the
problem. Of these the following are perhaps the more important: First,
the defects in legislative procedure; second, the reorganization of
state administration; third, budget reform; and fourth, the reform of
municipal government.
A. DEFECTS IN LEGISLATIVE PROCEDURE
452. AMERICAN LEGISLATURES ARE OVERWORKED.--It has frequently been
pointed out that in the United States both state and National
legislatures are overwhelmed with work. One reason for this is that
the extension of government control over industrial corporations has
rendered legislation more complex and greater in volume. The
development of public interest in health, education, and related
fields has 'of recent years markedly increased the amount of
legislation. The custom which many legislators have of attempting to
get as much special legislation for their respective districts as
possible has likewise increased the number of laws upon the statute
books. Lastly, it should be borne in mind that throughout our history
we have tended to believe legislation a cure-all for the defects of
American life. This attitude has led to an excessive number of laws on
subjects which in European countries are ordinarily left to the
discretion of administrative officials.
The combined effect of these developments has been to confront our
legislatures with so much business that honest and efficient
legislation has been rendered exceedingly difficult.
453 THE COMMITTEE SYSTEM.--The chief defects of American legislation
appear in connection with the committee system which exists in both
National and state legislatures. The committee system is the practice
of dividing the legislative body into a large number of small groups
or committees whose duty it is to consider various types of
legislative business. The great merit of this device is that it
expedites business. Indeed, the membership of our legislatures has
become so large, and the amount of legislative business has increased
so rapidly, that it is difficult to see how the committee system could
be dispensed with. Without some such division of labor, chaos and
endless delay would result. [Footnote: For the part played by the
committee system in the actual making of a law, see Chapter XLIIL]
At the same time, the committee system has numerous faults. As Lord
Bryce has pointed out, it destroys the unity of the legislature by
breaking it up into a number of small groups among which there is no
appreciable degree of coördination. The committee system limits
debate. Since most committee business is transacted in secret session,
the public is deprived of light upon public affairs. So minutely does
the committee system divide legislative labor that even the most
important piece of legislation cannot secure the attention of the best
men. There is a diffusion of responsibility when various committees
work upon related problems without regard for the work being done by
one another. Finally, the committee system throws power, unaccompanied
by adequate responsibility, into the hands of the committee chairman.
454 LOG-ROLLING. Log-rolling is the trading of votes among individual
legislators. Many of the faults of our state and National legislatures
are connected with this practice. Some legislators are so intent upon
securing the passage of bills in which they are personally interested
that 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 drawn
in a wider interest,--taxation, education, and other vital matters
being neglected so that members may pursue personal ends.
There is as yet no limit to the number of bills which may be
introduced by state or National legislators. As a result there is a
large number of unnecessary and hastily framed bills for which no one
is definitely responsible. It is supposed to be the duty of all
legislators to weed out bills which are poorly framed, or which are
designed to promote special interests. But in this case everybody's
business becomes nobody's business. Such machine-like formalities as
repeated readings of a bill, and a series of committee reports upon
it, are generally substituted for individual scrutiny of a measure.
455. LEGISLATIVE REFORM.--The reform of legislative procedure is
attracting an increasing amount of attention among students of
American politics. Many recent state constitutions define in detail
the powers and procedure of the state legislature. A considerable
number of states now have legislative reference bureaus, which enable
legislators to keep track of legislation in other states, as well as
to have ready access to important data bearing upon their own
problems. There is a growing tendency for state legislatures to employ
expert bill drafters to draw up laws on technical and highly-complex
subjects. The expert bill drafter and the legislative bureau help
materially to reduce the amount of defective and unwise legislation on
the statute books.
Much remains to be done, however. Important public bills ought
invariably to be given first consideration by legislators, instead of,
as is still many times the case, being put off until the end of the
session in order to allow time for log-rolling. Filibustering and
other time-wasting tactics should be curbed, because they tend to
obstruct legislation. Many students of government advocate the
extension of a plan already adopted in Massachusetts and a few other
states, whereby all bills are given a public hearing. It is also clear
that some method ought to be devised whereby the work of the various
committees dealing with related subjects could be correlated and
harmonized. Lastly, any measures which will reduce the amount of
unnecessary and ill-advised legislation must prove of great value.
B. THE REORGANIZATION OF STATE ADMINISTRATION
456. DEFECTS IN STATE ADMINISTRATION.--Originally the state
administration 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 and
more attention from state governments. To perform a host of new
functions the state administration has expanded to include numerous
commissioners, boards, and departments, some of them elected by the
people, 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 a
confused and tangled mass of boards and commissions, departments and
single offices, often duplicating the work of one another, and largely
working without any appreciable degree of coördination. In most states
numerous administrative officers are elective, rather than appointive.
This situation has two drawbacks: In the first place elective
officials are responsible to no one but the people at large, and
therefore these officials cannot be _efficiently directed or
supervised_ by the Governor. In the second place, no definite person
or persons can be held _responsible_ for the conduct of this numerous
body of elective administrative officials.
457. THE REFORM OF STATE ADMINISTRATION.--The reorganization and
consolidation of state administrative offices is attracting an
increasing amount of attention. In New Jersey, Massachusetts,
Illinois, and several other states, administration has been notably
simplified and systematized. The Illinois Administrative Code of 1917,
for example, consolidated the work of more than a hundred
administrative offices into nine main departments. Each department is
in charge of a director, appointed by the Governor, and each
department is responsible to the Governor. Coördination of this type
economizes time and energy, and saves the state's money by reducing
the number of salaried officials. The centralization of the entire
administration under the Governor not only allows efficient
supervision, but permits the people to hold this official strictly
accountable for the administration.
The need of reform in state administration is recognized throughout
the Union, but in most states the reorganization of administrative
offices is retarded in two ways: First, the movement is opposed by
officeholders who fear that their positions will be abolished by a
consolidation of departments; second, in many states the consolidation
of administrative offices is impossible without substantial amendments
to the state constitution.
C. BUDGET REFORM
458. THE QUESTION OF A BUDGET.--In contrast to the leading countries
of Europe, our National government until very recently had no budget
system. Some of the estimates were prepared by the administrative
departments, under the direction of the President, while other
estimates were prepared by various committees in the House of
Representatives. In Congress there was little or no coördination
between the various committees considering different appropriations.
Nor were these committees properly coördinated with the administrative
departments which were responsible for the original estimates.
After appropriations had been granted, Congress had no scrutiny over
the actual expenditure of the money. Thus the administrative
departments might waste their appropriations, and then secure the
passage of deficiency bills to make up the shortage. At no time did
the various departments and committees considering appropriations take
into careful account the amount of government revenue. For this reason
it was purely an accident if appropriations kept within the limits set
by available revenue.
A similar situation formerly prevailed in many of the states. The
various administrative departments transmitted to the legislature an
estimate of what each required for the coming year. These estimates,
together with an unlimited number of appropriation bills introduced by
individual members, were referred to various committees. Whether
particular appropriations were granted depended, not upon the amount
of state revenue, but upon the political pressure brought to bear in
favor of those measures. As in Congress, neither the executive nor
legislative branch of government, neither particular committees nor
individual legislators, could be held wholly responsible for any
appropriation measure. Excessive waste of public funds was the result.
459. BUDGET REFORM.--The last two decades have witnessed a growing
demand for a national budget. Under the direction of President Taft a
commission investigated the general question of responsibility in the
handling of Federal finances. The report of the committee favored a
national budget, but the unfriendly attitude of Congress checked the
movement. Interest in a national budget increased during the two terms
of President Wilson, stimulated, especially, by the wave of postwar
economy which swept the country after the signing of the armistice in
November, 1918. In the spring of 1921, a bill establishing a budget
system for the National government passed both houses of Congress, and
on June 10, 1921, the bill became law by the signature of President
Harding. This system is expected markedly to improve Federal finances.
Practically unknown a few years ago, the budget movement among the
states has spread so rapidly that at the present time almost all of
the commonwealths have some sort of budget system. Three methods of
preparing the budget are found among the several states. In some
states, as in New York, budget-making is in the hands of the
legislature; in other states, as in Wisconsin, both legislature and
executive participate in budget-making; in still other states, as
in Illinois, the executive alone is responsible for the preparation of
the budget. Many authorities claim that the last-named type of budget
preparation is preferable but, in many states it is objected to as
giving too much power to the executive.
D. THE REFORM OF MUNICIPAL GOVERNMENT
460. MUNICIPAL REFORM: CHANGES IN THE MAYOR-COUNCIL PLAN.--Until the
opening of the twentieth century practically every American city was
governed under what is known as the mayor-council plan. This plan
provides for a council to make the laws, and a mayor to act as
executive. Formerly the council of the larger cities was very often
composed of two chambers, a board of aldermen and a common council,
but of late years the single-chambered council has become more and
more common.
The mayor-council plan still prevails in most American cities,
particularly in the larger municipalities. But everywhere the growing
demand for honesty and efficiency in government is leading to the
reform of this system. In order to reduce the length of the ballot,
the appointive power of the mayor is being increased. In the interests
of economy and responsibility the administrative offices are in many
cities being consolidated, coördinated and centralized under the
mayor. To guard against the abuse of financial power there is in many
commonwealths a tendency for state constitutions and statutes to limit
the debt-incurring and franchise-granting powers of city councils.
461. MUNICIPAL REFORM: THE COMMISSION PLAN.--In September, 1900, a
tidal wave seriously demoralized the mayor-council form of government
in Galveston, Texas. To meet the emergency, the state legislature
authorized the establishment of a new type of government, known as the
commission plan. Instead of selecting a mayor and councilmen, the
voters of Galveston now choose a commission of five officials. All of
these commissioners are equal in power, except that one presides as
mayor-president. The commission form of government spread rapidly,
chiefly among the smaller cities, until in 1921 there were more than
300 municipalities governed under this plan. In every case the
commission has both legislative and executive powers. Collectively the
commissioners act as a legislative body for the city, individually
they head the various administrative departments.
A number of important advantages are claimed for the commission form
of city government. Responsibility is no longer divided among mayor
and councilmen, but can be definitely placed upon the small group of
commissioners. It is believed by many that commission government
allows a greater harmony of action than is possible under the mayor-
council plan. Finally, it is declared, a group of five or seven
commissioners can administer city government with more efficiency than
can 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 centralizes
great power in the hands of a small group. The plan is said to
increase the danger of corruption, since appropriating and spending
powers are placed in the same hands. The opponents of this form of
government also maintain that it renders easier the corruption of the
city administration, since party bosses may easily gain control of a
few commissioners. A final, and perhaps the most serious, objection is
that commission government does not go to the logical conclusion in
concentrating responsibility. There is no head to the administration,
and no way of preventing the diffusion of responsibility among the
commissioners. Jealousy among the commissioners has often led to
friction and to working at cross-purposes. [Footnote: Of recent years
a number of cities have abandoned commission government for either the
mayor-council or the city manager plan.]
462. MUNICIPAL REFORM: THE CITY MANAGER PLAN.--A recent modification
of commission government is the city manager plan. This provides for a
small elective commission, which does not itself administer the
government of the city, but which chooses, instead, an experienced
executive or city manager. The city manager is supposed to be a non-
partisan expert whose duty it is to administer the city in accordance
with 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 accepts
full responsibility for the administration of the city's affairs.
The first city to apply the city manager plan was Dayton, Ohio, which
began the experiment on January 1, 1914. Since that date the plan, or
some variation of it, has been established in about a hundred cities.
The city manager plan is an improvement over the commission plan, in
that it allows a greater concentration of responsibility. Another
advantage over commission government is that the city manager plan
insures a high grade of professional skill at the apex of the city's
administration. The plan appears to work well in the smaller cities,
provided a high grade manager can be found, and provided, also, that
his position can be safeguarded against corrupting political
influences.
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 brought
about 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 appropriation
bills. (Reed, page 484.)
4. How are provisions against special legislation evaded in some
states? (Bryce, page 559.)
5. Enumerate and briefly characterize the chief administrative offices
in 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? (Illinois
Report, pages 18-24.)
8. Summarize the advantages of a reorganized and consolidated state
administration. (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 state
legislature. Ask for his personal opinion concerning the amount of
legislative business to be transacted, the workings of the committee
system, and the practice of log-rolling.
2. Status of the expert bill-drafter and the legislative reference
bureau in your state. If these devices have not been adopted,
interview or write to a member of the state legislature concerning his
opinion 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 and
commissions embraced in the administrative department of your state.
Point out instances of duplication and lack of coördination. Draw up a
plan 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 Civil
Government_, pages 282-295.)
10. The legislative reference bureau. (Reinsch, _Readings on American
State Government_, pages 63-74.)
11. History of state administration. (Illinois Constitutional
Convention Bulletins, 1920, pages 623-709.)
12. The reorganization of state government. (Munro, _The Government of
the United States_, chapter xxxvi.)
13. A National budget. (Cleveland and Buck, _The Budget and
Responsible Government_, chapters xviii-xx.)
14. State budgets. (Cleveland and Buck, _The Budget and Responsible
Government_, part iii; Munro, _The Government of the United States_,
pages 466-469.)
15. Revenues and expenditures of cities. (Beard, _American City
Government_, chapter v.)
16. Home rule for cities. (Beard, _American City Government_, chapter
ii.)
17. The mayor-council plan. (Munro, _The Government of American
Cities_, chapters viii and ix.)
18. The commission plan of city government. (Munro, _The Government of
American Cities_, chapter xii; Massachusetts Constitutional Convention
Bulletins.)
19. The city manager plan. (Munro, _The Government of American
Cities_, chapter xv; Massachusetts Constitutional Convention
Bulletins.)
20. The civil service as a career. (Foltz, _The Federal Civil Service
as a Career_.)
FOR CLASSROOM DISCUSSION
21. Would shortening the length of the legislative session improve the
quality 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 legislator
may 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 the
Debaters' Handbook Series.)
CHAPTER XXXVII
THE EXTENSION OF POPULAR CONTROL
463. BASIS OF POPULAR CONTROL.--The fact that our government is a
representative democracy entitles the voters to choose, direct, and
control the public officials who act for the people at large. We have
discussed a few of the methods whereby the nomination and election
machinery might be improved; we must now go a step further and examine
the means by which officeholders may be controlled.
Supposedly, officials are chosen because the people believe them able
and willing to discharge public duties with honesty and efficiency.
But after officials have taken office it may develop that they have
secured their positions by unfair means, or that they are dishonest,
or that they are inefficient or otherwise unsatisfactory. Wherever it
develops that officeholders no longer meet with the approval of the
people, truly representative government is impossible unless some
method of effective popular control is found.
A. INDIRECT METHODS OF CONTROL
464. REFUSAL TO REËLECT.--If the voters are dissatisfied with the
conduct of their representatives, they may express their disapproval
by refusing to reëlect those representatives. This effects a measure
of control, even though it is negative and not immediate.
465. REMOVAL BY THE APPOINTIVE AUTHORITY.--If satisfaction is not
rendered by subordinate administrative officials who have secured
office through appointment, such officials may be removed from office
by the authority appointing them. The power of the President,
Governor, or mayor to appoint generally carries with it the power
to remove from office. Such removal may be on the initiative of the
appointing authority, or it may be in response to a popular demand.
From the standpoint of the voters at large, however, this method of
removal is indirect and often ineffective.
466. IMPEACHMENT.--Unsatisfactory officials are sometimes removed by
the impeachment process. In the various states either a part or the
whole of the legislature may sit as a court of impeachment for the
trial of certain important officials accused of serious crime. In the
National government the House of Representatives may initiate
impeachment proceedings against the President, Vice-President, and all
other civil officers of the United States. In such cases the Senate
acts as a court of trial.
Yet as a method of popular control impeachment is unsatisfactory. It
is indirect, since a part or the whole of the legislature acts for the
people. It is slow and cumbersome. It does not extend over the entire
list of public officials, nor over the entire range of offenses.
467. CONTROL THROUGH THE AMENDING PROCESS.--The powers and duties of
public officials may be partially controlled through the formal
amending process. In all states except New Hampshire the constitution
may be amended through legislative action, subsequently ratified by
popular vote. About two thirds of the states also provide for
amendment by a constitutional convention composed of delegates elected
by the voters. In a number of states, as we shall see a little later,
constitutional amendment may also be secured by means of the
Initiative and Referendum.
The Federal Constitution may be formally amended in four different
ways. The two most important methods are, first, by a two-thirds vote
in each house of Congress, and second, by a convention called by
Congress upon application of the legislatures of two thirds of the
states. In either case the amendment must be ratified by the
legislatures of three fourths of the states.
The formal amending process is an important part of our governmental
machinery, but as a method of popular control it is open to a number
of criticisms. It is slow. It is indirect, for the people must rely
chiefly upon their legislatures. Constitutional amendment cannot
remedy all of the abuses of office. Furthermore, it is too drastic and
far-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 popular
discontent 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 may
draft a statute, and, on securing the signatures of a certain
percentage of the voters, compel the state officials to submit the
measure to popular vote. If at this voting the measure secures the
required popular approval, it becomes law.
When the measure is submitted to the voters directly after the
fulfilment of the petition requirements, the device is known as the
Direct Initiative. When, after passing the petition stage, the measure
goes to the legislature and does not come before the people at the
polls unless the legislature fails to accept it, the device is known
as the Indirect Initiative. In a dozen states, chiefly in the West,
the Initiative is also used to propose amendments to the state
constitution.
469. THE REFERENDUM.--Early in our national history, it became an
established principle that proposed constitutions or constitutional
amendments should be referred to the voters for ratification. Of
recent years about a third of the states, chiefly in the West, have
extended the referendum device to cover ordinary legislation. This
type of referendum may be defined as a plan whereby a small percentage
of the voters may demand that practically any statute passed by the
legislature must be submitted to the voters and approved by a
specified majority before going into effect. [Footnote: A few types of
laws 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 the
people whenever a designated number of voters petition that this step
be taken. The Optional Referendum allows the state legislature to
decide whether or not an enacted measure should be submitted to the
people. The Statutory Referendum applies only to proposed statutes,
while the Constitutional Referendum is limited to proposed amendments
to the state constitution.
470. DIRECT LEGISLATION.--The Initiative and the Referendum are found
together in more than a dozen states. The two devices are
supplementary: the Initiative is a positive instrument which may be
used to set the wheels of direct legislation in motion; the Referendum
is a negative measure which gives the people a potential veto on laws
passed by the legislature. The Initiative and the Referendum are known
collectively as Direct Legislation, that is, legislation directly by
the people, as opposed to legislation enacted entirely through the
legislature.
471. ADVANTAGES CLAIMED FOR DIRECT LEGISLATION.--Important advantages
are claimed for Direct Legislation. It is declared that the Initiative
and Referendum keep lawmaking from being dominated by special
interests. Because it constitutes a check upon constitutional
conventions and state legislatures, Direct Legislation is said to make
government more truly responsive to public opinion. It is claimed that
Direct Legislation does not supplant, but rather supplements,
improves, and renders more democratic, the formal legislative
machinery. In several states, and especially in Oregon, it is claimed
that the device stimulates political interest on the part of the
voters. In Oregon the authorities print a pamphlet containing a
statement of proposed laws, and summarizing the arguments of both
advocates and opponents of each measure. Some weeks before the measure
is to be decided at the polls this pamphlet is sent at public expense
to every registered voter in the state.
472. OBJECTIVES URGED AGAINST DIRECT LEGISLATION.--Critics of the
Initiative and the Referendum maintain that Direct Legislation has
many serious defects. It is declared that by breaking down and
weakening the state legislature, this type of legislation threatens
the integrity of the framework of government established by the state
constitution. It is pointed out that Direct Legislation shifts
lawmaking from a definite group (the state legislature), to a large
and indefinite group of persons (the voters as a class), upon whom
responsibility cannot be fixed. By robbing the legislature of power
and responsibility, the Initiative and Referendum are said to degrade
rather than to improve that body: the best class of men is not
attracted to a legislature which has been shorn of dignity and
influence, and if the people rely upon the Initiative and Referendum,
the voters deem it less necessary to choose honest, capable
legislators.
It is also maintained that the Initiative and Referendum do not
promote independence of political thought, since only a mechanical
"Yes" or "No" is demanded of the voters. In all states where Direct
Legislation is applied, it is said, so few persons actually vote that
legislation is really determined by a small minority of the voters.
Again, the ease with which the Initiative and Referendum may be set in
motion allows so many measures to be brought before the people that
they cannot vote upon them intelligently. It is also said that Direct
Legislation is primarily the instrument of the propagandist, because
in many cases cranks and professional agitators monopolize the
privilege of circulating petitions.
A serious defect of Direct Legislation is that the drafting of many
laws requires detailed and technical information which the average
voter is in no position to secure. In several states, notably in
Maine, the recognition of this difficulty has led to the adoption of a
modified Initiative. According to this plan, the state legislature may
examine any measure proposed by the voters, enact an alternative
measure of its own, and submit both to popular approval. The voters
decide between the two. The difficulty with this plan is that it is
not only expensive, but that by doubling the number of measures to be
weighed and studied it imposes an added burden upon the voter at the
polls.
473. THE RECALL.--The Recall is a device whereby certain elective
officials who have not given satisfaction in office may be required to
stand for reëelection before the end of their terms. The Recall is set
in motion when a petition has been duly signed by a specified
percentage of the voters, usually at least twenty-five per cent. The
Recall cannot be employed until the official in question has been in
office a specified period, so that he shall have had an opportunity to
give satisfaction before being subject to recall. Accused officials
may forestall the Recall by resigning when a petition is launched
against them, otherwise they must stand for reëlection. The ballot
which goes to the people contains, in brief, the objections to the
official, and, in some states, also the reply of the accused
officeholder. If defeated at the polls the accused official must
retire from office; if vindicated, he continues in office during the
remainder of his term.
The principle of the Recall was recognized in American state
government before the end of the eighteenth century, but in its
present application it is much younger. In its modern form the Recall
was first used in 1903, when the city of Los Angeles applied it to
elective municipal officials. Five years later Oregon adopted it for
all state officers, and since 1908 it has spread to a number of other
states, most of them in the western part of the country. The Recall
has been used chiefly against city officials, though in several states
it may be applied to a majority of both local and state officials. In
Oregon, California, Arizona, Colorado, and Nevada, the Recall may also
be used against judges.
474. ARGUMENTS FOR THE RECALL.--Those favoring the Recall maintain
that it is the natural and legitimate expression of the right to
remove unsatisfactory officials. It is pointed out that the Recall
permits longer terms for elective officials, for if the voters know
that they can use the Recall to remove officials who prove
unsatisfactory, they will feel safe in electing those officials for
relatively long terms. By reducing the number of elections, the device
lightens the burdens of the voter. The Recall is said to be a
wholesome reminder of preëlection promises. It is also maintained that
since the Recall is a threat, it encourages officeholders to be honest
and efficient.
475. OBJECTIONS URGED AGAINST THE RECALL.--In answer to the above
arguments, the opponents of the Recall claim that the device
encourages officials to curry popular favor, regardless of public
duty. It may also place officials at the mercy of popular passion and
caprice. When it is applied to judges, the Recall threatens the
integrity and independence of a branch of government which ought to be
removed from popular clamor and prejudice. This last is a serious
objection, for it may happen that judges subject to the Recall will
hesitate to hand down decisions that may prove unpopular, however just
those decisions may be. For this reason the extension of the Recall to
judges is being strongly resisted. Even the most ardent advocates of
the device are beginning to admit that the Recall is more applicable
to administrative officials than to judges.
476. STATUS OF THE RECALL.--A satisfactory decision upon the merits of
the Recall is difficult because it is so recent a development and
still so little used that few data are available. The state-wide
Recall has been in existence for a number of years, yet few state
officials have been removed by it. Los Angeles used the Recall to
unseat the mayor in 1904 and in 1909, and in 1911 the device was used
against the mayor of Seattle. But the Recall is primarily a threat,
and is rarely used. In view of this fact, the arguments for and
against the device rest upon theory rather than upon actual
experience. The Recall has great possibilities for good if wisely
administered, but it may become an evil influence if carelessly or
revengefully used.
477. SIGNIFICANCE OF POPULAR CONTROL.--The development of the
Initiative, the Referendum, and the Recall indicates a growing
impatience with the abuses of party power, the evils of the long
ballot, and the corruption and inefficiency of many legislative
bodies. It is significant that direct popular control has accompanied
the widespread movement to reform municipal government, and that it is
playing an increasingly important part in the movement to reform state
administration.
Up to the present time, the Initiative, the Referendum, and the Recall
have been confined chiefly to the West, where political problems are
less acute than in the East, and where, too, the tendency toward
direct participation in government has always been marked.
Nevertheless, there is some indication that the future will see an
extension of direct popular control, not only in the West, but also in
other parts of the country. Whether or not this extension is desirable
we cannot now say. But certainly it is an interesting and important
development, and one demanding careful study and mature deliberation
on the part of those who seek to make American government highly
effective.
QUESTIONS ON THE TEXT
1. What is the basis of popular control?
2. Name several methods of indirect control, and point out the
objections 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 have
been 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 Initiative
and Referendum to national legislation? (Beard, pages 465-466.)
6. In what ways does Direct Legislation establish a system of minority
rule? (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 and
Referendum? (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 may
be 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 found
together in your state.
7. The Recall in your state. If this device has not been adopted in
your 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 Civil
Government_, pages 295-303; Munro, _The Initiative, Referendum and
Recall_, 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 and
Recall_, chapter xii.)
14. The Recall in Los Angeles. (Munro, _The Initiative, Referendum and
Recall_, chapter xiv.)
15. The Recall in Oregon. (Munro, _The Initiative, Referendum and
Recall_, chapter xi.)
16. The Recall in Seattle. (Munro, _The Initiative, Referendum and
Recall_, 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 and
Recall. (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 National
legislation?
21. Do the Initiative and Referendum increase the burden upon the
voter?
22. The effect of the Initiative and Referendum upon the character of
the state legislature.
23. Should the Recall be applied to judges?
24. Merits and defects of such forms of direct popular control as
exist 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 powerful
influences in any community is that intangible something which we call
Public Opinion. Though everyone is familiar with it, the term Public
Opinion is difficult to define. Public Opinion is intimately connected
with the opinion of the individual, and yet is something more than a
mere total of individual opinions.
Every man has a set of opinions or beliefs which are characteristic of
his native instincts, his home training, and other influences which
have helped mould his personality. Wherever individuals associate, the
opinions of each person affect and are affected by the opinions of his
fellows. As the result of this interaction we think of public opinion
as being made up of a number of different currents, each embodying a
view, a belief, or a doctrine. Where many individuals support a given
view with moderate intensity, or where a small group feels very
intensely upon a given topic, we say that Public Opinion has formed.
Public Opinion may be defined as a definite focus of individual
opinions which are either numerous or intense enough to constitute a
recognizable force, and to exert a noticeable influence upon the life
of the community.
479. PUBLIC OPINION AND LAW.--It is characteristic of the human mind
that we perceive concrete and tangible things more easily than we
understand abstract and intangible forces. Law is a definite,
concrete, almost tangible thing; we perceive its outlines, recognize
its various forms, and understand its nature and significance. But it
is less easy to understand that law may be only a symptom of Public
Opinion, only the concrete expression of intangible community
sentiment. There is an interaction between law and Public Opinion, but
the latter is the more fundamental and the more powerful. Public
Opinion which is vigorous and well-organized may force the enactment
of law; on the other hand, a law which runs counter to the prevailing
state of Public Opinion may cease to be effective, because individuals
will not coöperate in enforcing it. Law half leads, half follows
Public Opinion, and when legislators are skilled in discerning and
influencing the mental attitudes of the people, law and Public Opinion
pretty well keep pace with one another.
480. PUBLIC OPINION IN A DEMOCRACY.--The beliefs and opinions of the
masses have been an important force even in the most absolute of
monarchies; in representative democracies Public Opinion is even more
important. Under a democratic form of government the attitude of the
masses tends to be one of inquiry, self-confidence, and self-
expression upon public questions. Lord Bryce has pointed out that
because democracy permits and encourages freedom of discussion, Public
Opinion in a country like the United States becomes much more powerful
than in less democratic countries.
And not only is Public Opinion more powerful in a democracy, but
democracy 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 and
sustained, the people must cultivate an attitude of constant vigilance
against civic indifference. Nominations and elections are focal
periods in government, but government is a continuous obligation which
requires constant rather than intermittent attention. Where civic
interest is neither strong nor consistent, the virtues of democracy
may be diffused in blind and leaderless wanderings.
481. DEVELOPMENT OF PUBLIC OPINION.--Even though never definitely
focused or expressed, the vague beliefs, fancies, and prejudices of
individuals may influence public affairs by causing community leaders
to feel that "the people" will or will not tolerate a contemplated
line of action.
But the influence exerted will be much greater if the opinions of the
individual are definite, and if there is some method of clarifying,
coördinating and expressing the opinions of groups of individuals upon
a given subject. If the opinions of the individual are to be definite
and concrete, he must habitually come in contact with forceful persons
and institutions; if the opinions of various individuals are to be
coördinated and expressed there must be either physical contiguity
among people, or else adequate means of transportation and
communication.
We may now consider a few of the forces which serve to make definite
and to organize the opinions of individuals.
482. THE HOME.--Certainly no institution exerts a more powerful
influence upon the beliefs and opinions of the individual than the
home. Our basic ideals and traditions pass from generation to
generation through the continuity of the family life. During the
plastic and impressionable period of infancy the child is constantly
under the influence of the parents. At first fashioned largely by the
parents, the beliefs and sentiments of the growing child are later
modified by contact with other family members. When children go out to
the school, the church or the workshop, beliefs and attitudes
encountered outside the home are weighed in the light of family
teachings. When young men and young women make homes of their own,
they in turn imprint upon their children a complex of tradition and
opinion 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, the
influence of the home is the influence of the school. While still in
the plastic stage the child is given over to the moulding influences
of teacher and fellow-students. New contacts are made, new opinions
are encountered, new avenues of thought and action are opened to the
young and growing mind. Of recent years the tendency of the school to
identify itself more closely with the practical life of the community
is increasing the power and influence of that institution. The school
is proving a genuine means of transition between the relatively
localized influence of the home and the more widely diffused
influences of the community.
484. THE CHURCH.--Closely related to the school as a determinant of
opinion is the church. In the early stages of social development the
home was equally the center of intellectual and religious life, but in
recent times the church and the school have become separate, though
related, institutions. The child spends more time in school than in
the company of religious instructors other than his parents, but
affiliation with the church often continues throughout the life of the
individual, while the average child leaves school at a relatively
early age. From the standpoint of Public Opinion, the primary
importance of the church is that it exerts a powerful influence upon
the ideals and conduct of both young and old. And as in the case of
the school, this influence is being deepened by the increasingly close
connection between the church and the practical life of the community.
485. THE THEATER.--The theatre has always been a vital influence in
man's aesthetic and emotional life. Drama, opera, comedy, and
burlesque are variant forms, but they are alike in that they influence
the audience. In the last decade the moving picture has greatly
increased the power and influence of the theatre. The low price of the
moving picture brings the theatre to millions who formerly were
excluded from any appreciable degree of theatrical entertainment. The
daily moving picture attendance of ten million people, the stimulating
effect of music, the strong emotional appeal, the tender age of many
of the audience, and the growing use of the moving picture as
propaganda, all combine to make the film a powerful factor in the
formation 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 of
transportation, the press coördinates individuals not physically
contiguous, and thus enables them to act in concert. It lets everybody
know what everybody else is thinking, or at least what they are
supposed to be thinking. The forms of the printed page are infinitely
various: daily papers, weeklies, monthlies, pamphlets, and books,--all
of these are increasingly numerous. Statesmen, teachers, reformers,
propagandists, and professional writers combine to turn out tons of
printed matter a day. Pictures, jokes, contests, and stories are
resorted to for the purpose of attracting attention. Editorials,
advertisements, and news articles are among the vehicles of expression
used. 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 the
street, stares at him from shop windows and billboards, forces itself
upon his attention in the street cars, and knocks at the door of his
private dwelling. In all its forms, it should be remembered, the
dominant aim of the printed page is to influence the individual, to
cause him to do something or to refrain from doing something.
487. GROWING IMPORTANCE OF PUBLIC OPINION.--Despite the volume of
European immigration to this country, American ideals and institutions
are rendering our population more and more homogeneous, and thus more
open to unifying influences. The increasing ease of transportation and
communication is everywhere making isolation more difficult. Not only
are the school, the church, the press, and the theatre widening in
scope and increasing in influence, but new forms of expression are
developing. There is a growing number of private organizations
advocating social, economic, or political reforms. The popularization
of psychology has encouraged the rise of innumerable forms of
propaganda designed to influence the opinions of the community and
nation. Occupational and social groups are everywhere organizing,
clarifying their opinions, and expressing common principles in the
effort to influence the public mind. All of these factors combine to
increase the importance of Public Opinion in present-day American
life.
488. DANGERS OF UNREGULATED PUBLIC OPINION.--The growing power of
Public Opinion brings with it increased possibilities for good, but
also increased possibilities for evil. In an important sense, this is
the age of the propagandist, the crank reformer, and the subsidized
newspaper, the age of the agitator who spreads lies through anonymous
letters, unsigned posters, and irresponsible whisperings. The
individual must be constantly on his guard against this flood; he must
recognize that Public Opinion is often capricious, and that a sudden
hysteria may inflict untold injury. The morality of a mob is inferior
to the morality of the individuals composing the mob, because in a mob
the sense of power is dominant and the sense of responsibility is
suppressed. Properly speaking a mob depends upon physical contiguity,
but the coördinating influence of rapid transportation and
communication may create a mob spirit between individuals not
physically in contact. When propaganda lashes into a passion groups of
people in widely separated areas, democracy becomes the most dangerous
of all forms of government: there is no sure hand upon the helm, the
people control _en masse_, in a burst of passion they may lay waste
the social heritage of centuries.
489. FREEDOM A PARTIAL SAFEGUARD AGAINST UNSOUND PUBLIC OPINION.--
While democracy facilitates the creation of the mob spirit, it
likewise carries within itself at least a partial remedy for unsound
Public Opinion. Men's opinions are infinitely various: the same
community that produces the fanatic or the impractical idealist
generally produces sensible and practical men as well. In politics men
everywhere tend to divide into a radical group and a conservative
group, between which control of the government oscillates.
Where freedom of expression is permitted, the existence of these two
antagonistic camps is automatically a safeguard of the public welfare.
Any one of a number of groups of people might ruin the country if left
to themselves. But they are _not_ left to themselves. Their opponents
are constantly criticizing and checking them. When cranks launch
propaganda, conservative critics launch counter-propaganda; when
special interests attempt to influence the public mind, public-
spirited individuals or organizations force both sides of the question
before the public. When public officials neglect their duties, a
thousand discerning men are ready to shout the fact from the
housetops. 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 public
attention to the mistakes of their opponents, and agitating for a
change of administration.
490. THE GUIDANCE OF PUBLIC OPINION.--Let us briefly consider the
question of guiding or directing the formulation of sound Public
Opinion. In a free country, such guidance may sometimes prove
dangerous, and yet careful direction of the formulation of Public
Opinion is justified by two facts: First, the formulation of sound
opinion is retarded by the great difficulty of securing adequate
information on the great problems of modern civilization. Here the
individual needs some help. Second, everyone who can distinguish
between license and liberty must agree that we should limit the
influence of individuals and institutions which suppress minority
opinion, 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 it
easier for the individual to secure data and information on current
topics. The extension and perfection of the postal service, the
improvement of our system of transportation, the spread of the school
and library, and possibly the free distribution of literature dealing
with the nature and functions of government, these and similar
measures would prove helpful.
Second, law and moral education ought to coöperate in suppressing
influences which seek deliberately to poison or pervert the public
mind. Free speech is a priceless element in democracy, but just as we
must harmonize individual liberty with the interests of the group, so
we must prevent the use of free speech for criminal purposes.
Especially ought the press and the school to be encouraged to give
both sides of debatable questions. Every agency dealing with the
issues of American life, indeed, ought to be careful not to distort
those issues by suppressing or misusing facts. Above all, we must be
careful not to pander to low ideals by emphasizing the negative and
destructive side of our problems.
491. RESPONSIBILITY OF THE INDIVIDUAL.--A progressive civilization
confers more and more benefits upon the individual, but his duties and
responsibilities increase with equal speed. As Theodore Roosevelt once
said, "It is not difficult to be virtuous in a cloistered and negative
way," but honestly and effectively to fulfill the obligations of
citizenship in a complex society is less easy. And yet the need of
individual responsibility is infinitely greater in a modern community
than among the members of an isolated and self-sufficient group. When
small isolated villages were the dominant form of American settlement,
the laxness of one group did not vitally affect the welfare of other
groups. But so entwined are the present-day citizens of the United
States that the acts of one individual may vitally affect the national
well-being. The carelessness of a food canner on the Pacific coast may
cost the life of a family on the Atlantic seaboard; a swindle
originating in the East may demoralize individuals throughout the
country. The obligations of citizenship have become national as well
as local; in thought and in action the individual must function, not
only in terms of his locality, but in terms of the nation as well.
492. THE POWER OF THE INDIVIDUAL.--Measuring himself against more than
a hundred million of his fellows, the average American citizen is
likely to be overpowered by the apparent futility and powerlessness of
his personal opinions. And yet the power of the nation is only the
result of the combined influences of its individual citizens. All
power is with the individual. However much the absolute monarchy may
have suppressed the individual, in a democracy he can become a vital
force in government. We are too fond of taking censuses on the one
hand, and of deferring to governmental mechanisms on the other. The
individual _is_ master of his fate, and he _is_ the ultimate
determinant of government. If government is sound, the misbehavior of
the individual can ruin it; if government is defective, the assumption
of responsibility by the individual must ultimately reform it. We do
not need a fool-proof government half as much as we need active,
responsible individuals to run the government we already have. "How
long will American democracy last?" a European statesman once asked.
"Just so long," the answer might have been, "as Americans honestly and
intelligently grapple with the problems confronting them, holding
themselves individually responsible for the conduct of government, and
seeking consistently to exert an influence upon their community life
which 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 Public
Opinion?
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, chapter
xliv.
4. Lowell, _Popular Government and Public Opinion_, chapter iii.
QUESTIONS ON THE REQUIRED READINGS
1. What is the relation of homogeneity of population to Public
Opinion? (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 in
other 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, page
162.)
10. What is the one great clear purpose in civic life? (Brewer, pages
120-121.)
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 the
recent World War, and try in each case to trace the origin of each
belief or opinion.
2. Toward which political party are you inclined? To what extent is
this 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 your
home, and which have since been modified by what you have studied in
school.
4. To what extent are your personal standards of conduct traceable to
what you have seen at the theatre?
5. List the private organizations in your community which exist for
the purpose of advocating reforms of various kinds.
6. Make a study of the forms of propaganda utilized in a single copy
of any metropolitan newspaper.
7. To what extent does your local press give both sides of debatable
questions?
II
8. The nature of Public Opinion. (Lowell, _Public Opinion and Popular
Government_, chapters i and ii.)
9. Relation of Public Opinion to law. (Forman, _The American
Democracy_, 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, _Modern
Democracies_, 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 to
Good Citizenship_.)
18. Leadership in a democracy. (Bryce, _Modern Democracies_, vol. ii,
chapter lxxvi.)
19. Relation between freedom and responsibility. (Hadley, _The
Relation between Freedom and Responsibility in the Evolution of
Democratic Government_.)
20. The influence of ideals upon civic conduct. (Adams, _The Power of
Ideals in American History_.)
21. Wherein Public Opinion fails. (Bryce, _The American Commonwealth_,
vol. ii, chapter lxxxvi.)
22. Wherein Public Opinion succeeds. (Bryce, _The American
Commonwealth_, vol. ii, chapter lxxxvii.)
FOR CLASSROOM DISCUSSION
23. Suppose the public highways in your locality were in bad
condition. How would you go about it to remedy the situation?
24. Which has more influence upon the opinions of people, the school
or the press?
25. Are the Initiative and the Referendum adequate methods of
ascertaining the prevailing state of Public Opinion?
26. Is freedom of speech an adequate safeguard of the rights of
minorities?
27. To what extent, if to any, should Federal and state authorities
distribute free literature concerning the nature and functions of
American government?
28. How might coöperation in the study of civic problems be promoted
in 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 fuller
discussion of the background of the Federal Constitution, see Chapters
II and III.]
493. COLONIAL GOVERNMENTS.--It is possible to classify the American
colonies as charter, royal, and proprietary, and to point out
important differences between these three types.
But these differences fade in importance before the broad and
fundamental similarities existing among the colonies. Just as there
was among the colonies a substantial unity of race, language, and
religion, so there was a basic similarity in political institutions.
All of the colonies were under relatively the same degree of control
by England, and consequently all of them had much the same degree of
freedom in managing their own affairs. In each colony a governor acted
as chief executive. In each colony, likewise, there was a legislature.
In most of the colonies this legislature consisted of two houses, the
lower of which was elected by the people. Colonial jurisprudence
everywhere grounded upon the common law of England. In each colony
there was a system of courts, largely following English judicial
procedure. In local government there was a good deal of variation
among the colonies, but everywhere the English model was followed, and
everywhere the principle of local autonomy was asserted and
championed.
494. EARLY ATTEMPTS AT UNION.--These fundamental similarities,
together with the rise of common problems and the pressure of outside
enemies, encouraged federation among the colonies. A notable attempt
at union was made in 1643, when Massachusetts Bay, Plymouth,
Connecticut, and New Haven united in a league of friendship, primarily
for mutual defense against the Indians. This league rendered effective
service during the forty years of its life. In 1754 delegates from
seven colonies met at Albany and adopted a plan of union proposed by
Benjamin Franklin. The project was never carried through, but it is
significant as indicating the trend toward union. Still later (1765)
the Stamp Act Congress showed that the delegates of at least nine
colonies could join in a protest against England's taxation policy.
The two Continental Congresses may also be considered as steps toward
union. The first of these (1774) concerned itself chiefly with a
declaration of rights and grievances, but the second (1775-1781) went
so far as to assume and exercise revolutionary powers.
495. THE ARTICLES OF CONFEDERATION.--Impelled by the necessity of a
united front against England, the Second Continental Congress sought
to give force to the Declaration of Independence by drawing up a
comprehensive plan of union. This plan, embodied in the Articles of
Confederation, was put into operation on March 1, 1781. The new
government was a confederation or league of states, rather than a
federal government such as we have to-day. The states gave up such
important powers as the right to declare war, and the right to borrow
and coin money, but the Articles specifically declared that "each
state retains its sovereignty, freedom, and independence, and every
power, jurisdiction, and right which is not by this federation
delegated to the United States in Congress assembled."
The Confederation government was seriously defective. There was no
national executive and no judiciary. All authority was concentrated in
a one-chambered congress, the delegates to which were entirely under
the control of the state legislatures which chose them. The central
government had no real authority or power. Its congress could reach
the individual only through the action of the state governments, and
these it could not coerce. The Confederation government managed to
carry the states through the last two years of the war, and then
declined rapidly in power and influence. The Congress could not force
the states to coöperate with one another in matters of national
interest. The inability of the central government, either to pay the
interest on the national debt or to force the states to observe
treaties which we made with foreign powers, cost us the respect of
Europe. "We were bullied by England," writes John Fiske of this
period, "insulted by France, and looked askance at in Holland."
The defects of the Articles could not be remedied, for amendment was
by unanimous consent only, and on every occasion that an amendment was
proposed, one or more states refused their assent. By 1786 it was the
conviction of most American statesmen that if the country were to be
saved from anarchy and ruin the central government would have to be
reorganized.
496. THE CONSTITUTIONAL CONVENTION OF 1787.--In May, 1787, delegates
from every state except Rhode Island came together in Philadelphia to
consider "means necessary to render the Constitution of the Federal
government adequate to the exigencies of the Union."
Early in the session Edmund Randolph introduced what has been called
the Virginia plan. This called for an abandonment of the Articles of
Confederation and demanded the establishment of a strong national
government. The Virginia plan favored the larger and more populous
states by providing a national Congress of two houses, in both of
which representation was to be on the basis of population.
Of the several other plans put before the Convention the most notable
was that proposed by William Paterson of New Jersey. The adherents of
this plan wished to retain the Articles of Confederation. The Articles
were to be revised so as to give greater powers to the central
government, but in most practical concerns the states were to continue
sovereign. The New Jersey plan opposed the idea of a two-chambered
legislature in which the states were to be represented on the basis of
population. If representation in both houses of Congress were on the
basis of population, it was declared, the larger and more populous
states would be able to dominate the National government and the
rights of the smaller states would be inadequately safeguarded.
After a long debate a compromise plan was adopted. It was agreed that
there should be established a strong national government, but one
sufficiently checked by constitutional provisions to safeguard the
rights of the states. The national legislature was to consist of two
houses. In the upper house the states were to be represented equally,
while in the lower chamber representation was to be on the basis of
population.
497. THE NEW GOVERNMENT.--The Convention completed the Constitution on
September 17, 1787, and the document was immediately placed before the
states. By the summer of 1788 the necessary number of states had
ratified the Constitution, and on April 30, 1789, the new government
was put to work under George Washington as first President.
The English statesman Gladstone has implied that our Constitution was
an original creation, "struck off at a given time by the brain and
purpose of man." But as a matter of fact the Constitution was not so
much the result of political originality as it was a careful selection
from British and colonial experience. The trial of the Confederation
government had proved especially valuable, and in drawing up the
Federal Constitution, the members of the Constitutional Convention
were careful to avoid the defects of the Articles of Confederation.
The most fundamental difference between the Confederation government
and the new Federal government was that the Federal Constitution
provided for an adequate executive and judiciary to enforce the
Federal laws directly upon the individual. The Confederation
government, it will be remembered, had been obliged to rely upon the
states for the enforcement of all laws.
B. FRAMEWORK OF THE FEDERAL GOVERNMENT
498. THE THEORY OF LIMITED GOVERNMENT.--The new Constitution created a
system of Federal government which retains the advantages of local
self-government for the states, but at the same time secures the
strength which results from union. The government of the United States
is a compromise between centralization and decentralization, the
balance between these two extremes being maintained by a rather
elaborate system of checks, balances, and limitations.
These checks, balances, and limitations we may consider under five
heads: first, private rights under the Federal Constitution; second,
the threefold division of powers in the Federal government; third, the
division 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 the
prohibitions upon the states in favor of private rights, see Chapter
XLV.]--The constitutional limitations upon the Federal government in
behalf of private rights fall into two groups: those designed to
protect personal liberty, [Footnote: Some of the limitations in favor
of personal liberty enumerated in this section are contained in the
first 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 protects
personal liberty against arbitrary interference on the part of the
National government. Congress may pass no law establishing or
prohibiting any religion, or abridging either freedom of speech or
freedom of the press. The right of the people peaceably to assemble
and petition the government for a redress of grievances shall not be
denied. The privilege of the writ of _habeas corpus_ shall not be
suspended. Congress may not define treason. Neither bills of
attainder, nor _ex-post facto_ legislation may be passed by Congress.
Jury trial, fair bail, and freedom from both excessive fines and cruel
and unusual punishments are guaranteed by the Constitution. Neither
life, liberty nor property may be taken without due process of law.
The Federal Constitution likewise protects the property rights of the
individual against Federal aggression. The state governments alone may
define property. Congress may not tax articles which are exported from
any state. All direct taxes must be apportioned according to
population. [Footnote: The Sixteenth Amendment exempts the income tax
from this rule.] All duties, imposts, and excises must be uniform,
that is, they must fall upon the same article with the same weight
wherever found. Under the right of eminent domain, the Federal
government may take private property for public use, but in such a
case the owner must be fairly compensated.
500. THREEFOLD DIVISION OF POWERS IN THE FEDERAL GOVERNMENT.--A
second distinctive feature of our system of government is that Federal
authority is distributed among three distinct branches: the executive,
the legislative, and the judicial. This is part of the general system
of "checks and balances" by means of which the framers of the
Constitution sought to prevent any branch or division of government
from securing undue control of the governmental machinery.
The basic merit of this threefold division of powers is that it
safeguards each branch of government against aggression from the other
two branches. And yet this division of powers is by no means so
complete that the three branches do not work together. For example,
both the appointive and the treaty-making powers of the President are
shared by the Senate. The President shares in legislation through his
veto power, as well as through his right to send messages to Congress.
The Senate has the right to impeach all civil officers of the United
States, and may even exert some control over the Supreme Court through
its right to prescribe the number of its judges and the amount of
their salaries. The judiciary, on the other hand, enjoys the unique
power of passing upon the constitutionality of the acts of the other
two branches of government.
501. DIVISION OF POWERS BETWEEN FEDERAL AND STATE GOVERNMENTS.--
Another feature of the check and balance system is that authority is
divided between Federal and state governments. The Tenth Amendment
declares that "the powers not delegated to the United States by the
Constitution, nor prohibited by it to the states, are reserved to the
states." Thus we speak of the National government as enjoying
delegated or enumerated powers, while the state governments have
residual or unenumerated powers. The Federal government must show some
specific or implied grant of power for everything that it does, but
state governments need only show that the Federal Constitution does
not prohibit them from doing whatever they see fit.
This division of powers between Federal and state governments has
several distinct advantages. For example, it allows Federal and state
governments to act as a check upon one another. Furthermore, the
device admirably divides governmental labor: the Federal government is
given control of matters essentially national, while the states are
left in charge of affairs distinctly state or local in character.
502. INTERSTATE RELATIONS.--Further to guarantee the integrity of the
Federal system, the Constitution specifies the fundamental nature of
interstate relations. The states are independent of one another, and
are equal in Federal law. The laws of a state have no force, and their
public officials have no authority, beyond the state limits.
The Constitution specifically provides that "full faith and credit
shall be given in each state to the public acts, records, and judicial
proceedings of every other state." This does not mean that the laws of
a particular state are binding upon persons in other states. It does
mean, however, that the courts of each state shall endeavor to give
the same force to the laws of a neighboring state as those laws would
have in the courts of the legislating state.
To prevent discriminations against citizens of other states, the
Federal Constitution provides that the citizens of each state are
"entitled to all the privileges and immunities of citizens in the
several states." This means that a citizen of one state may remove to
a neighboring state, and there enjoy the same civil rights that the
citizens of the latter state enjoy.
In order that fugitive criminals may be tried and punished, the
Constitution further provides that "a person charged in any state with
treason, felony, or other crime, who shall flee from justice, and be
found in another state, shall, on the demand of the executive
authority of the state from which he fled, be delivered up to be
removed to the state having jurisdiction of the crime."
503. SUPREMACY OF FEDERAL LAW.--A last distinctive feature of our
system of government is that Federal law is supreme. The Constitution
states: "This Constitution and the laws of the United States which
shall be made in pursuance thereof, and all treaties made or which
shall be made under the authority of the United States shall be the
supreme law of the land." The states are supreme in their sphere of
action; nevertheless, when it is claimed that there is a conflict
between state and Federal law, the latter prevails. Federal law is the
supreme law of the land, and, in the last instance, it is the Supreme
Court of the United States which is the interpreter of that law. The
decisions of the Supreme Court are binding upon the Federal
government, upon the several states, and upon private individuals.
C. DEVELOPMENT OF THE FEDERAL CONSTITUTION
504. THE FORMAL AMENDING PROCESS.--The Constitution of the United
States may be formally amended in any one of four ways. First, an
amendment may be proposed by a two-thirds vote of each House of
Congress, and ratified by the legislatures of three fourths of the
states. Second, an amendment may be proposed by a two-thirds vote of
each House of Congress and ratified by conventions in three fourths of
the States. Third, an amendment may be proposed by a national
convention, called by Congress upon the request of the legislatures of
two thirds of the states, and ratified by the legislatures of three
fourths of the states. The fourth method resembles the third, except
that ratification is by conventions in three fourths of the states.
505. AMENDMENTS I-XIX.--There have been nineteen Amendments to the
Federal Constitution. [Footnote: For the full text of these Amendments
see the Appendix.]
Of these the first ten were adopted as a body in 1791, to satisfy
those who feared that the new Constitution did not adequately protect
individual 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 government
is one of enumerated powers, while those powers not specifically
conferred upon the Federal government by the Constitution are reserved
to the states or to the people.
The Eleventh Amendment, adopted in 1798, provided that the Federal
judicial power should not be construed to extend to any suit against a
state by citizens of another state, or by citizens or subjects of any
foreign state.
The Twelfth Amendment, adopted in 1804, provided that presidential
electors should cast separate ballots for President and Vice
President.
The Thirteenth Amendment (1865) abolished slavery, the Fourteenth
(1868) defined citizenship and sought to prevent the states from
discriminating against certain classes of citizens, while the
Fifteenth Amendment (1870) declared that the right of citizens of the
United States to vote shall not be denied or abridged on account of
race, color, or previous condition of servitude.
In 1913 the Sixteenth Amendment authorized Congress to tax incomes
without apportionment among the several states, and without regard to
any census or enumeration.
In the same year the Seventeenth Amendment provided for the direct
election of United States Senators.
In 1919 an Eighteenth Amendment prohibited the manufacture, sale, or
transportation of intoxicating liquors within, the importation thereof
into, or the exportation thereof from, the United States.
A Nineteenth Amendment was adopted in 1920. This declared that the
right to vote shall not be denied to any citizen of the United States
on account of sex.
506. CONSTITUTIONAL CHANGES THROUGH JUDICIAL INTERPRETATION.--The
Federal Constitution has also been modified and developed by judicial
interpretation. The United States Supreme Court has maintained that
the Federal government possesses not only those powers expressly
granted by the Constitution, but also those powers which are included
with, or implied from, powers expressly granted. This liberal
construction is authorized by the Constitution itself, for the last
clause in Section VIII of Article One of that document declares that
Congress shall have power to "make all laws which shall be necessary
and proper for carrying into execution" its enumerated powers. Under
this doctrine of implied powers, the influence of the National
government has been markedly extended, chiefly with regard to the war
power, the power to regulate interstate commerce, and the power to
levy taxes and borrow money.
507. CONSTITUTIONAL CHANGES THROUGH USAGE.--The Federal Constitution
has also been modified by the force of custom and political practices.
Examples of the power of usage to modify the Constitution are
numerous, but a few will suffice to illustrate the principle. Custom
has limited the President of the United States to two terms. In
conformity with a long-established custom, Presidential electors do
not exercise independent judgment, but merely register the vote of
their respective constituents. Though the Constitution provides that
the appointive power of the President shall be exercised with the
advice and consent of the Senate, custom virtually prohibits the
Senate from challenging the President's Cabinet appointments. On the
other hand, many executive appointments of minor importance are
determined solely by members of Congress. Usage decrees that the
President alone may remove officers which he has appointed with the
advice and consent of the Senate. Lastly, the legislative committee
system, as well as the entire machinery of the political party, is the
outcome of custom. Concerning these important instruments of practical
politics, the Constitution is silent.
QUESTIONS ON THE TEXT
1. Point out some similarities among the American colonial
governments.
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 Convention
convened?
5. What was the Virginia plan? The New Jersey plan?
6. What was the fundamental difference between the Confederation
government and the new Federal government?
7. What is the theory of limited government?
8. What two classes of private rights are safeguarded by the Federal
Constitution?
9. What is the nature and purpose of the threefold division of powers?
10. To what extent does the Constitution divide powers between Federal
and state governments?
11. Outline the nature of interstate relations, as provided for in the
Federal 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 the
Federal Constitution.
15. To what extent has the Federal Constitution been modified by
judicial 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_, chapter
xviii.
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, pages
208-209.)
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 were
avoided in framing the Federal Constitution. (Beard, pages 53-56.)
7. What were some of the objections to the ratification of the Federal
Constitution? (Beard, pages 56-58.)
8. Compare the English and American Constitutions with respect to
flexibility. (Munro, pages 57-58.)
9. What effect has constitutional development had upon the division of
powers? (Munro, pages 69-70.)
10. Has the development of the Federal Constitution made government
more or less democratic? (Munro, page 70.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. The protection of your personal liberty under the Federal
Constitution.
2. The protection of your property rights under the Federal
Constitution.
3. Compare the first eight amendments to the Federal Constitution with
the bill of rights in your state constitution.
4. Compare the Federal Constitution with the constitution of your
state with respect to length, number of subjects treated, and
complexity of language.
5. The process of extradition between your state and neighboring
commonwealths.
II
6. Evolution of the state. (Gettell, _Problems in Political
Evolution_, chapter i.)
7. Nature of Federal government. (Gettell, _Readings in Political
Science_, 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, _American
Government and Politics_, chapter i; Munro, _The Government of the
United States_, chapter i; Reed, _Form and Functions of American
Government_, chapter i.)
10. Preliminaries of national government. (Beard, _American Government
and Politics_, chapter ii; Munro, _The Government of the United
States_, chapter ii.)
11. The meaning of "We, the People of the United States," in the
Preamble 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, _Government
and Politics in the United States_, chapter xxi.)
14. The supremacy of Federal law. (Munro, _The Government of the
United States_, chapter iv.)
15. The check and balance system. (Gettell, _Readings in Political
Science_, pages 332-336; Forman, _The American Republic_, chapter iv.)
16. The separation of powers. (Beard, _American Government and
Politics_, pages 152-155; Gettell, _Introduction to Political
Science_, chapter xvii; Leacock, _Elements of Political Science_, part
ii, chapter i.)
17. Interstate relations. (Leacock, _Elements of Political Science_,
chapter vi.)
18. Personal liberty and government. (Cleveland, _Organized
Democracy_, chapter vii; Gettell, _Introduction to Political Science_,
chapter ix.)
19. The doctrine of implied powers. (Guitteau, _Government and
Politics in the United States_, chapter xx.)
20. Evolution of the Federal Constitution. (Kimball, _The National
Government of the United States_, chapter ii.)
FOR CLASSROOM DISCUSSION
21. Is the Federal Constitution too difficult of amendment? Is it too
easily amended?
22. Does the Constitution adequately protect state governments against
Federal aggression?
23. Has judicial interpretation of the Constitution proved helpful or
harmful?
24. Has constitutional modification through usage proved helpful or
harmful?
CHAPTER XL
THE PRESIDENT OF THE UNITED STATES
A. CHOOSING THE PRESIDENT
508. ORIGINAL METHOD OF CHOOSING THE PRESIDENT.--The Federal
Constitution sought to protect the office of chief magistrate against
popular passion by providing for the indirect election of the
President. According to the Constitution, each state was to appoint,
"in such manner as the legislature thereof may direct," a number of
electors equal to the state's combined quota of senators and
representatives in Congress. These electors were to meet, each group
in its own state, and were to vote by ballot for two persons. These
ballots were then to be transmitted sealed to Congress, where the
President of the Senate was to open and count them in the presence of
both houses. The person receiving the highest number of votes was to
be declared President, while the individual obtaining the next highest
number was to fill the office of Vice President.
509. CHANGES IN THE ORIGINAL METHOD OF CHOOSING THE PRESIDENT.--Three
important changes have been brought about in the original method of
choosing the President.
At the beginning of our national history, the state legislatures
themselves chose the Presidential electors, but with the spread of
democracy the legislatures gradually transferred the choice of these
electors to the people. To-day Presidential electors are in every
state chosen by popular vote, on a general state-wide ticket.
After the election of 1800 it became apparent that in order to prevent
the candidate for Vice President from defeating the candidate for
President, there would have to be a separate ballot for each of these
officers. In 1804 there was accordingly passed the Twelfth Amendment
to the Constitution, providing that Presidential electors should
thenceforth cast separate ballots for President and Vice President.
Party politics have effected a third change in the original method of
choosing the President. The Constitution evidently intended that the
Presidential electors should be men of high repute, and that they
should select the nation's chief executive as the result of mature
deliberation and independent judgment. But as early as the third
Presidential election (1796) it became clearly understood that the
electors would merely register the opinions of their constituents.
Technically the electors still choose the President; as a matter of
fact they exercise no discretion, but merely express decisions
previously reached by their respective constituents.
510. PRESENT METHOD OF CHOOSING THE PRESIDENT.--To-day the President
of the United States is elected as follows:
Each political party nominates a candidate for the presidency at a
national convention held in June or July of the presidential year. At
about the same time the various parties in each state nominate the
quota of presidential electors to which the state is entitled. The
people vote on these electors on the Tuesday following the first
Monday in November of each leap year. In each state the electors
receiving a plurality assemble at the state capitol on the second
Monday in January following their election, and vote directly for
President and Vice President. These votes are then certified and sent
to the President of the Senate. On the second Wednesday in February,
this officer opens them, and in the presence of the two houses of
Congress, counts them, and declares elected the candidate who has
received the majority of the electoral votes. If no candidate has a
majority, the House of Representatives elects one of the three leading
candidates, the Representatives from each state casting one vote. In
1800 and again in 1824, the presidential election was thus decided by
the House.
511. QUALIFICATIONS.--All persons who are entitled to vote for the
most numerous branch of the state legislature are entitled, likewise,
to vote in presidential elections. [Footnote: For limitations upon the
suffrage in the various states, see Chapter XXXIII, Section 415.]
No presidential elector may hold any office of trust or profit under
the United States. By custom electors are also residents of the
district from which they are chosen.
The President of the United States must be a natural-born citizen of
the United States and must be at least thirty-five years of age. He
must also have been a resident of the United States for fourteen
years.
512. COMPENSATION.--The President's salary is determined by Congress,
but the amount may be neither increased nor decreased for the existing
presidential term. Between 1789 and 1873 the presidential salary was
$25,000, and in 1873 it was increased to $50,000 a year. Since 1909
the President has received an annual salary of $75,000, plus an
allowance for travelling expenses and the upkeep of the White House or
Executive Mansion.
513. TERM AND SUCCESSION.--The President-elect is inaugurated on the
4th of March following his election, and serves until the 4th of March
four years later. By custom, though not by law, he is limited to two
terms.
The Constitution provides that in case the President is removed by
impeachment, death, resignation, or inability, his duties shall
devolve upon the Vice President. In 1886 the Presidential Succession
Act provided that in case of the inability of both President and Vice
President 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, and
Secretary of the Interior. No Cabinet officer has ever succeeded to
the Presidency, but Presidents Tyler, Fillmore, Johnson, Arthur, and
Roosevelt were formerly Vice Presidents who ascended to the Presidency
because of the death of the chief executive.
514. THE VICE PRESIDENT.--The Vice President of the United States is
elected in the same manner and by the same electors as the President,
with this exception: The failure of any Vice-Presidential candidate to
receive a majority of the electoral votes permits the Vice President
to be chosen by the Senate from the two candidates receiving the
highest number of electoral votes. The qualifications for the Vice
President are the same as for the President. The Vice Presidents
salary is $12,000 a year.
Aside from the fact that he may succeed the President there is little
to be said about the Vice President. He presides over the Senate, but
he is not a member of that body. He can neither appoint committees,
nor even vote, except in case of a tie. Vice Presidents have generally
exerted little influence upon national affairs. During President
Wilson's second term, neither the President's extended absence in
Europe, nor his serious illness at home, operated to increase the
influence of the Vice President. Under President Harding's
administration, however, Vice President Coolidge was accorded
considerable recognition, including the privilege of sitting in the
President's Cabinet meetings.
B. DUTIES AND POWERS OP THE PRESIDENT
515. GENERAL STATUS OF THE PRESIDENT--The President of the United
States acts as the head of the executive branch of government. Since
the executive is independent of the other two branches, the President
is subject to the control of neither legislature nor judiciary. The
President cannot be arrested for any cause whatsoever. No ordinary
court has jurisdiction over the Chief Magistrate, though misconduct
may result in his being impeached by the Senate of the United States.
The President enjoys extensive powers, some of which are enumerated in
the Constitution, [Footnote: Article II] and others of which he has
acquired by the force of custom. These powers are divisible into four
groups, which may be discussed in the following order: War powers,
powers with reference to foreign affairs, administrative powers, and
legislative powers.
516. WAR POWERS OF THE PRESIDENT.--Section II of Article II of the
Constitution provides that the President shall be "commander-in-chief
of the army and navy of the United States, and of the militia of the
several states when called into actual service of the United States."
In pursuance of this power the President controls and directs the
nation's military and naval forces, and appoints all army and naval
officers. [Footnote: In time of war, the President may dismiss these
officers at will; in time of peace, however, they are removed by
court-martial.] The execution of the military law under which the army
and navy are governed is also directed by the President. The President
may call out the state militia, when in his judgment such action is
necessary in order to suppress insurrection, repel invasion, or
enforce the laws. In case of war with foreign countries, the President
as commander-in-chief assumes full direction of hostilities.
So long as he acts within the bounds of international law, the
President may do anything which he deems necessary to weaken the power
of the enemy. In the exercise of this right President Lincoln
blockaded the southern ports during the Civil War, suspended the writ
of _habeas corpus_, declared martial law in many districts, and freed
the slaves by proclamation. During the World War (1917-1921), the
powers of President Wilson were greatly expanded. For the purpose of
bringing the struggle with Germany to a successful termination,
Congress conferred upon the President large powers of control over
food, fuel, shipbuilding, and the export trade. The railway,
telegraph, and wireless systems were taken over by the government
under the President's war powers.
An important phase of the President's war powers is the constitutional
charge to take care that the laws be faithfully executed. Usually the
administration of law is a peaceful process, but when the civil
authorities are rendered powerless by persons defying Federal law, the
President may use his military power to restore order. On three
notable occasions the President has enforced the laws by the use or
display of military force. In 1794 President Washington called out the
militia of four states to suppress the Whiskey Rebellion. During the
Civil War, President Lincoln resorted to military force to execute the
laws. Again, in 1894, President Cleveland used regular troops to
prevent railway strikers in Chicago from interfering with the Federal
mails.
517. CONTROL OVER FOREIGN AFFAIRS.--The Constitution vests in the
President the power to negotiate treaties and conventions with foreign
nations. In practice the President usually acts through the Secretary
of State. During the process of negotiation it is customary for the
President to consult with the Senate committee on foreign relations,
as well as with the leaders of the senatorial majority. Such
consultation is a wise step, because no treaty may become law unless
ratified by the Senate.
The President receives diplomatic representatives from foreign
countries. This is largely a ceremonial duty, but it may involve
serious consequences. When the independence of a foreign country is in
doubt, or when the representative of any nation is personally
objectionable to our government, the President may refuse to receive
the foreign representative. In case relations between this and a
foreign country become strained, or in case the representative of a
foreign power is guilty of misconduct, the President may request the
withdrawal of, or may even dismiss, the foreign representative. This
severance of diplomatic relations may lead to war.
The President has the further power to appoint diplomatic
representatives to foreign countries. We send ambassadors to the more
important countries, ministers-resident to most countries, envoys
extraordinary or ministers-plenipotentiary to several countries, and
commissioners for special purposes. In the absence of the permanent
diplomatic representative some minor officer takes temporary charge,
and is known as the _chargé d'affaires ad interim_. All of the
President's diplomatic appointments must be confirmed by the Senate,
but the President acting alone may remove any diplomatic officer. Such
removal is at the pleasure of the President. The term of office
enjoyed by diplomatic representatives is not fixed by law, but due to
the influence of the spoils system, it often terminates when a new
President assumes office.
Besides diplomatic officers, who are charged with political duties,
our foreign service comprises various grades of consuls, or commercial
representatives. The President and the Senate likewise choose consular
officers, but from lists of persons who have qualified under the merit
system. Promotion and removal are determined by Civil Service rules.
518. ADMINISTRATIVE POWERS OF THE PRESIDENT.--The chief
administrative function of the President is to carry into effect the
laws of the United States. In the discharge of this duty the President
is aided by a large number of subordinate officials, who, directly or
indirectly, are responsible to him as head of the administration.
Altogether there are more than half a million officials in the
executive civil service of the United States.
Over the appointment of these numerous officers the President has a
varying measure of control.
He alone appoints a few executive officials, such as his private
secretary and the members of his Cabinet. The latter are nominally
chosen by the President and the Senate, but in practice the Senate
universally 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 more
important executive officers. These include diplomatic agents, Federal
judges, most military and naval officers, collectors of customs and
internal revenues, and many others. In the case of minor positions to
be filled within a congressional district, the President usually
confers with the Representative from that district, if that
Representative is of the President's party. If such Representative is
not of the President's party, the candidate for the position is really
selected by the Senators from the proper state. [Footnote: Provided,
of course, that these Senators belong to the same political party as
the President. ] The more important positions in this group are filled
by the Senators from the state in which the vacancy exists, the
President ratifying such selections as a matter of course. Officers in
this second group are removable only by the President.
More than 300,000 of the minor executive positions are now filled by
the Civil Service Commission. Persons entering office through the
merit system, may be removed only for a cause which will promote the
efficiency of the service.
In addition to his administrative duties, the President has the power
to grant reprieves and pardons for offenses against the United States,
except in the case of impeachment. A pardon fully exempts the
individual from the punishment imposed upon him by law; a reprieve, on
the other hand, is simply a temporary suspension of the execution of a
sentence.
519. LEGISLATIVE POWERS OF THE PRESIDENT.--Though primarily an
executive officer, the President enjoys important powers over
legislation.
The President may convene either or both houses of Congress on
extraordinary occasions. For example, he may call an extra session of
Congress to consider such questions as the tariff, currency reform, or
a treaty.
The President has the right to send messages to Congress from time to
time during his term. The recommendations contained in these messages
exert some direct influence upon legislation, and are important in
formulating public opinion outside of Congress.
Indirectly the President exerts a considerable influence upon
legislation by bringing political pressure to bear upon the
Congressional leaders of his party. He also exerts some influence upon
legislation by the use of the patronage which accompanies his
appointing power. This influence is important as breaking down the
barriers between the executive and legislative branches of government.
The President may issue ordinances which have the force of law. As
commander-in-chief of the army and navy, he may issue ordinances for
their regulation. In pursuance of the duty to enforce the laws, the
President may issue ordinances prescribing uniform means for the
enforcement of the statutes. He may issue ordinances for specific
purposes, as, for example, Congress in 1912 authorized the President
to issue legislative ordinances for the government of the Canal Zone.
Very important is the President's veto power. The President may veto
any bill or joint resolution passed by Congress, with the exception of
joint resolutions proposing Constitutional amendments. But the
President must veto the bill as a whole, and not particular items.
Even though vetoed by the President, a bill may still become law by
being passed by a two-thirds vote in each house of Congress. In spite
of these restrictions, the President exerts a considerable influence
upon legislation by the use of the veto, or by the threat that he will
employ it. Most authorities regard the veto power as a wholesome check
upon 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 the
original method of choosing the President.
3. Describe the present method of choosing the President.
4. What are the qualifications for Presidential electors? For
President?
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 and
receiving 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_, chapter
xxv.
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 officers
appointed by him? (Beard, page 193.)
6. How did President Roosevelt once succeed in carrying out the terms
of 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 of
the militia of your state.
3. Compare the powers of the President of the United States with the
powers 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 are
filled, 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 a
standard history of the United States.)
8. The inauguration of a President. (Reinsch, _Readings on American
Federal Government_, pages 1-5.)
9. The war powers of the President. (Reinsch, _Readings on American
Federal 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 Federal
Government_, pages 79-127.)
12. The presidential power of appointment. (Taft, _Our Chief
Magistrate and His Powers_, chapter iii.)
13. The pardoning power of the President. (Taft, _Our Chief Magistrate
and His Powers_, chapter v.)
14. The presidential veto. (Taft, _Our Chief Magistrate and His
Powers_, chapter i.)
15. The President at work. (Reinsch, _Readings on American Federal
Government_, pages 5-10.)
16. The President as party leader. (Jones, _Readings on Parties and
Elections in the United States_, pages 205-211.)
17. Relations of the executive and legislative branches of the
National government. (Beard, _American Government and Politics_, pages
205-214.)
18. The impeachment of President Johnson. (Consult any general work on
American history, or an encyclopedia.)
19. "Why great men are not chosen Presidents." (Bryce, _The American
Commonwealth_, vol. i, chapter viii.)
FOR CLASSROOM DISCUSSION
20. Would a single presidential term of six years be preferable to the
present custom of electing a President for not more than two four-year
terms?
21. Should the President be chosen directly by the people, without
resort to the electoral college?
22. Does Congress exercise too little control over the choice of the
President's Cabinet?
23. Advantages and disadvantages of the veto power. (See Munro, _The
Government of the United States_, page 119.)
24. Should the President be permitted to veto separate items in a
bill?
CHAPTER XLI
THE NATIONAL ADMINISTRATION
520. DEVELOPMENT OF THE FEDERAL EXECUTIVE.--The President is the head
of the Federal executive, but in the performance of his numerous
administrative duties he is aided by a number of subordinate officers.
No executive departments were directly established by the
Constitution, but that document evidently assumes their existence, for
it clearly states that the President "may require the opinion, in
writing, of the principal officer in each of the executive
departments, upon any subject relating to the duties of their
respective offices." [Footnote: Article II, Section II, of the
Constitution.]
President Washington was authorized by Congress to appoint three
assistants: a Secretary of State, a Secretary of the Treasury, and a
Secretary of War. With the development of governmental functions,
additional departments have been created. Congress established the
Post Office Department in 1794, the Navy Department in 1798, the
Department of the Interior in 1849, the Department of Justice in 1870,
the Department of Agriculture in 1889, the Department of Commerce in
1903, and the Department of Labor in 1913. At present, then, there are
ten Federal executive departments, all of them under the direct
control of the President.
521. THE CABINET.--The heads of these ten departments are appointed by
the President, nominally with the consent of the Senate. They may be
removed only by the President, and by him at will. Neither in the
Constitution nor in the statutes of Congress is there provision for a
Cabinet, but as the result of custom which has been formulating since
Washington's second term the heads of the Federal executive
departments have come to constitute, in their collective capacity, the
President'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 Great
Britain and other European countries. In Europe the Cabinet is
generally a parliamentary ministry, that is to say, a group of men
chosen from the majority party in the legislature. These Cabinet
members, or ministers, sit in the legislature, propose laws, and
defend their measures on the floor. They are held responsible for the
national administration. This means that when the majority of the
legislature fails to support them they are expected to resign, in
order 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 its
members. The Cabinet in this country is accountable only to the
President. The attitude of Congress toward Cabinet officers has
nothing to do with the tenure of office of these executive heads.
Cabinet members do not sit in Congress; they do not, in the capacity
of Cabinet officers, introduce or defend legislation; and they are not
held responsible for the administration.
522. HEADS OF DEPARTMENTS AS ADMINISTRATIVE OFFICERS.--Collectively
the heads of the ten executive departments act as the President's
Cabinet; individually they administer their respective departments.
Though responsible to the President and at all times working under his
direction, the heads of departments are allowed a wide range of
independence. Department heads may appoint and remove at will a large
number of minor officers in their respective departments, though of
late years this power has been considerably restricted by Civil
Service rules. The exact scope of the work of the various departments
is largely denned by law. Within the limits thus set, the head of the
department is free to make regulations affecting the conduct of
departmental business. To expedite business, the work of each
department is divided and subdivided among numerous bureaus, boards,
and commissions, functioning under the general direction of the head
of the department.
523. THE DEPARTMENT OF STATE.--Without doubt the most important of the
subordinate executive officers is the Secretary of State. His most
pressing duty is to conduct foreign affairs in accordance with the
wishes of the President. In pursuance of this duty, the Secretary of
State issues instructions to diplomatic and consular officers, issues
passports to American citizens going abroad, and otherwise exercises
control of matters touching foreign relations.
Important domestic duties devolve upon the Secretary of State. When
the President desires to communicate with the Governors of the several
states, he acts through the Secretary of State. The Secretary is the
custodian of the Great Seal of the United States. It is he who
oversees the publication of the Federal statutes. The Secretary of
State likewise has charge of the archives containing the originals of
all laws, treaties, and foreign correspondence.
Much of the work of the Department of State is performed through
bureaus, the titles of which indicate their respective functions. Of
these bureaus the following are the more important: the diplomatic
bureau, the consular bureau, the bureau of accounts, the bureau of
indexes and archives, the bureau of rolls and library, the bureau of
appointments, and the bureau of citizenship. Each of these bureaus is
headed by a chief who is directly responsible to the Secretary of
State. In addition to these chiefs of bureaus, the Secretary is aided
by three assistant secretaries of state.
524. DEPARTMENT OF THE TREASURY.--Supervision of the national finances
is the chief business of the Secretary of the Treasury. The Secretary
annually submits to Congress estimates of probable receipts and
expenditures, and supervises the collection of customs and internal
revenues. He also issues warrants for all moneys paid out of the
treasury.
The scope of the department's work may be indicated by an enumeration
of its chief officers. These include the Secretary himself, three
assistant secretaries, six auditors, the treasurer, the comptroller
of the treasury, the director of the mint, the register, the
comptroller of the currency, the commissioner of internal revenue, the
director of the bureau of engraving and printing, the chief of the
secret-service department, the captain commandant of the coast guard,
the superintendent of the life-saving service, the surgeon-general of
the public health service, the supervising architect, and the farm
loan commissioner.
525. THE DEPARTMENT OF WAR.--National defense is the chief concern of
the Secretary of War. Coast fortifications, the supervision of
navigation, and river and harbor improvements fall within the scope of
the department. Our insular possessions are administered by the
Secretary of War. It is also the duty of this officer to prepare
estimates of the expenses of his department, to supervise all
expenditures for the support and transportation of the army, and to
take charge of the issuance of orders for the movement of troops. In
addition, he has charge of the Military Academy at West Point, and
recommends all appointments and promotions in the army service.
Under the Secretary of War are grouped a number of administrative
bureaus, each headed by an army officer detailed for a period of four
years. Of these officers the following are the more important: the
inspector-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 judge
advocate general, the provost-marshal general, and the chief of the
bureau of insular affairs.
526. THE DEPARTMENT OF THE NAVY.--The Department of the Navy is
likewise concerned with national defense. While less important than
the Department of War, the Department of the Navy is steadily gaining
in prestige. The Department is in charge of a Secretary, aided by an
assistant secretary. It is the duty of the Department of the Navy to
superintend the construction and armament of war vessels, and in
addition exercise a supervisory control over the naval service. The
Naval Academy at Annapolis and the Naval War College at Newport are in
charge of the Department of the Navy.
The administrative work of the Department is carried on by seven
bureaus, most of them in charge of line officers of the Navy, working
directly under the Secretary. These bureaus are as follows: the bureau
of 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 and
repairs.
527. THE DEPARTMENT OF JUSTICE.--This Department is headed by the
Attorney-General, who acts as the chief legal adviser of the National
government. It is his duty to represent the government in all cases to
which the United States is a party. It is he who conducts proceedings
against corporations or individuals who violate the Federal laws.
General supervision over all Federal district attorneys and marshals
is exercised by the Attorney-General. This officer likewise examines
the titles of lands which the government intends to purchase. The
Attorney-General has a supervisory charge of the penal and reformatory
institutions which are Federal in character. Applications for pardons
by the President are investigated by the Attorney-General. Still
another of his duties is to superintend the codification of the
Federal 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 the
Postmaster-General, has general charge of the postal service. The
Postmaster-General awards contracts for the transportation of the
mails, and directs the management of the domestic and foreign mail
service. The handling of money orders, the parcels post system, and
the postal savings banks come under the control of the Postmaster-
General. Of great importance is the power of this officer to bar from
the 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 the
department.
529. DEPARTMENT OF THE INTERIOR.--Aided by two assistant secretaries,
the Secretary of the Interior performs a number of important
functions. He has charge of all public lands, including national
parks. The handling of Indian affairs constitutes one of his duties.
The territories of Alaska and Hawaii come under the direct supervision
of this department.
Many miscellaneous functions are performed by the various bureaus
within the department. Patents, pensions, and the geological survey
come within the purview of the department. The Secretary of the
Interior has charge of the distribution of government appropriations
to various educational institutions. A general supervision over a
number of charitable institutions within the District of Columbia is
also exercised by this officer.
530. DEPARTMENT OF AGRICULTURE.--All matters pertaining to agriculture
in the widest sense are the concern of the Department of Agriculture.
Under the direction of the Secretary the Department issues a large
number of scientific and technical publications, including the
Agricultural Yearbook, the series of Farmers' Bulletins, the Monthly
Weather Review, and the Crop Reporter. Quarantine stations for
imported cattle, and the inspection of domestic meats and imported
food products are concerns of the various bureaus within the
Department. Of great importance is the work of the weather bureau in
sending out storm, flood, frost, and drought warnings.
An increasingly important phase of the Department's work is the Forest
Service, the work of which has been described in Chapter XXX. An
important bureau is the bureau of animal industry, which combats
animal diseases and gives advice concerning the best breeds of poultry
and cattle. The bureau of plant industry ransacks the world for new
crops suitable for our soils, and gives fruit-growers and farmers
advice concerning plant parasites. Insect pests are the concern of the
entomology division. Additional functions of the Department of
Agriculture may be indicated by an enumeration of some of the more
important of its remaining bureaus and divisions. These include the
bureau of chemistry, the bureau of soils, the bureau of statistics,
the bureau of crop estimates, the office of public roads and rural
engineering, the Federal horticultural board, and the bureau of
markets.
531. THE DEPARTMENT OF COMMERCE.--In 1913 what for ten years had been
known as the Department of Commerce and Labor was divided into two
separate departments, a Department of Commerce and a Department of
Labor.
The chief duty of the Department of Commerce is to foster the foreign
and domestic commerce of the United States. To promote our mining,
manufacturing and fishing industries, and to develop our
transportation facilities are, therefore, among the aims of this
department. The census, the coast survey and lighthouses, and
steamboat inspection are concerns of the Department of Commerce. The
scope of the Department, which is increasing rapidly, may be indicated
by an enumeration of the more important bureaus grouped within it.
These include the bureau of foreign and domestic commerce, the bureau
of census, the bureau of lighthouses, the bureau of coast and geodetic
survey, 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 the
Department of Labor are fewer than those of the other Departments,
they are being rapidly expanded by the extension of government
interest in industry. The Department is concerned with practically all
matters which affect labor conditions in the United States.
The Department of Labor collects and publishes information upon all
subjects connected with labor and capital, the hours and wages of
labor, and methods of improving the condition of the working classes.
It seeks to encourage industrial good will, and to adjust labor
disputes peaceably. An important bureau within the Department is the
bureau of immigration, which, under the direction of the commissioner-
general of immigration, is concerned with the administration of our
immigration laws. The bureau of naturalization keeps a record of
immigrants, and supervises their naturalization. Of growing importance
is the children's bureau, which investigates matters having to do with
child labor, infant mortality, orphanage, and the work of the juvenile
courts.
533. MISCELLANEOUS BOARDS AND COMMISSIONS.--In addition to the
executive departments which have been briefly discussed, the Federal
administration includes many independent boards, bureaus, and
commissions which perform duties not assigned to any of the ten
departments. These agencies have been established from time to time
under the authority of Congressional statutes. The chiefs of the
bureaus and the members of the boards and commissions are appointed by
the President and the Senate, most of them for a term ranging between
six and twelve years. These officials are largely experts, who happily
are sufficiently exempt from the spoils system to stand a fair chance
of surviving a change of administration.
Among the more important of these boards and commissions are the
following: The Federal Reserve Board, the Federal Farm Loan Board, the
Federal Board for Vocational Education, the Federal Trade Commission,
the Interstate Commerce Commission, the United States Tariff
Commission, and the Civil Service Commission. The nature and functions
of most of these administrative agencies have been discussed elsewhere
in 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 direction
of 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 the
Interior?
12. Discuss briefly the work of the Department of Agriculture.
13. What is the function of the Department of Commerce? Of the
Department of Labor?
14. Name some of the more important boards and commissions which are
independent of the ten executive departments.
REQUIRED READINGS
1. Beard, _American Government and Politics_, chapter ii.
2. Guitteau, _Government and Politics in the United States_, chapter
xxvii.
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 the
executive 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 Department
of 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 the
Secretary of the Interior? (Guitteau, page 320.)
7. Name some of the more important boards and commissions created
during the World War. (Guitteau, pages 325-326.)
8. Compare our Department of the Interior with the Department of the
Interior in France. (Munro, pages 136-137.)
9. What is meant by the statement that the National administration is
decentralized? (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 National
administration. (Reports on the work of the various departments may be
secured by writing to the respective departments at Washington, D.
C. See also Fairlie, _The National Administration of the United States
of America_.)
4. Compare the National administration with the administrative
department 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 Political
Science_, chapter xix.)
6. Functions of the Federal executive. (Kimball, _The National
Government 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 Administration
of the United States_, chapter iv.)
9. An Englishman's view of the American Cabinet. (Bryce, _The American
Commonwealth_, vol. i, chapter ix.)
10. The Department of State. (Fairlie, _The National Administration of
the United States_, chapter vi.)
11. The Department of the Treasury. (Fairlie, _The National
Administration of the United States_, chapters vii and viii.)
12. The Department of War. (Fairlie, _The National Administration of
the United States_, chapter ix.)
13. The Department of the Navy. (Fairlie, _The National Administration
of the United States_, chapter x.)
14. The Department of Justice. (Fairlie, _The National Administration
of the United States_, chapter xi.)
15. The Post Office Department. (Fairlie, _The National Administration
of the United States_, chapter xii.)
16. The Department of the Interior. (Fairlie, _The National
Administration of the United States_, chapters xiii and xiv.)
17. The Department of Agriculture. (Fairlie, _The National
Administration of the United States_, chapter xv.)
18. The Department of Commerce. (Fairlie, _The National Administration
of the United States_, chapter xvi.)
19. The Department of Labor. (Fairlie, _The National Administration of
the United States_, chapter xvi.)
FOR CLASSROOM DISCUSSION
20. The American Cabinet compared with the English Cabinet, (See
Munro, _The Government of the United States_, pages 143-145.)
21. Should the President be obliged to act in accordance with the
wishes of a majority of his Cabinet?
22. To what extent should promotion in the civil service be on the
basis of length of service? To what extent should promotion be
determined by periodic examinations?
23. Do you favor the creation of a new executive department, to be
called the Department of Public Welfare?
CHAPTER XLII
NATURE AND POWERS OF CONGRESS
534. CONGRESS CONSISTS OF TWO HOUSES.--The National legislature, or
Congress, consists of a Senate or upper chamber, and a House of
Representatives or lower chamber.
Several factors are responsible for this division of Congress into two
houses. Undoubtedly the framers of the Constitution were influenced by
the fact that the British Parliament and nearly all of the colonial
legislatures consisted of two houses. A second factor is that in the
opinion of the Fathers, a two-chambered legislature would allow each
house to act as a check upon the other. Finally, the creation of a
two-chambered legislature was necessary in order to reconcile the
conflicting desires of the large and the small states. During the
Constitutional Convention two opposing factions were brought together
by the creation of a two-chambered legislature, in the upper house of
which the states were to be represented equally, and in the lower
house of which representation was to be on the basis of population.
A. THE SENATE
535. TERM AND QUALIFICATIONS OF SENATORS.--Two Senators are chosen
from each state, regardless of population. The senatorial term is six
years. In order to make the Senate a permanent body, membership is so
arranged that one third of the Senators retire every two years. The
Federal Constitution provides that Senators must be at least thirty
years of age. In addition, a Senator must have been nine years a
citizen of the United States, and he must be an inhabitant of the
state from which he is chosen. The Senate alone is judge of the
qualifications of its members.
With respect to the Senate, two disqualifications are imposed by the
Federal Constitution. No one holding a Federal office may stand for
election as Senator. Nor may any person become a Senator who has taken
part in a rebellion against the United States after having taken an
oath as a government officer to support the Constitution.
536. THE ELECTION OF SENATORS.--Previous to 1913 Senators were chosen
by the various state legislatures, according to the provisions of the
Federal Constitution. [Footnote: Article I, Section III.] This method
proved unsatisfactory. Demoralizing political battles often took place
in the state legislatures in the effort to select the states' Senators
to Congress. Sometimes, even after a long struggle, no candidate was
able to secure a majority, and a deadlock occurred. Thus, on the one
hand, a state might be deprived of representation in the Senate for
weeks or months, while, on the other hand, the attention of the
legislature was so distracted by the senatorial struggle that purely
state interests suffered. As the result of a long agitation growing
out of these evils, the Federal Constitution was amended (1913) to
permit the direct election of Senators.
Since 1913, then, any person may vote directly for Senator who, under
the laws of his state, is qualified to vote for members of the more
numerous branch of the state legislature. When, for any reason, a
vacancy occurs in the representation of any state in the Senate, the
Governor of the state issues a writ of election to fill such vacancy.
Provided the state legislature grants the authority, the Governor also
may appoint some person to serve as Senator until the vacancy is
filled by popular election. Senators are generally reflected, and at
the present time the average term of service is not six, but about
twelve years.
537. PRIVILEGES AND IMMUNITIES OF SENATORS.--By the terms of the
Constitution, Senators are paid out of the national treasury an amount
to be determined by statute. At present both Senators and members of
the House of Representatives receive $7500 a year, plus an allowance
for travelling expenses, clerk hire, and stationery. Except in case of
treason or breach of the peace, Senators and Representatives are
immune to arrest during attendance at the sessions of their respective
houses, and in going to and returning from the same. Both Senators and
Representatives likewise enjoy freedom of speech and debate in their
respective houses. In either chamber only the house itself may call
members to account for their statements during the legislative
session. No member of Congress may be prosecuted in the courts for
libel or slander on account of statements made in Congress, or for the
official publication of what he has said during the legislative
session.
B. THE HOUSE or REPRESENTATIVES
538. MEMBERSHIP OF THE HOUSE.--Since the Senate is composed of two
Senators from each state, its membership has been relatively stable.
For a number of years there have been 96 Senators, two for each of the
forty-eight states of the Union.
The membership of the House of Representatives, on the other hand, is
steadily increasing, because based upon population. The number of
Representatives to which any state is entitled depends upon its
population as ascertained every ten years by a Federal census. After
each census Congress determines the number of Representatives of which
the House shall consist. The population of the United States is then
divided by this number, and the quotient is taken as the ratio of
representation. The population of each state is then divided by this
ratio to discover the number of Representatives to which it is
entitled. As a single exception to this rule, the Constitution
provides that each state shall have at least one Representative
regardless of population. Thus Nevada, Arizona, Wyoming, and Delaware
are entitled to one Representative, whereas according to the above
rule they would now be denied representation.
The present membership of the House of Representatives is 435.
539. WHO MAY VOTE FOR REPRESENTATIVES.--The Federal Constitution
provides that members of the House of Representatives shall be chosen
by persons who, in their respective states, are qualified to vote for
members of the more numerous branch of the state legislature. Most
male and female citizens over twenty-one years of age may vote for
members of this more numerous branch, and hence for Representatives to
Congress. In a number of states, however, educational, property and
other qualifications are imposed. Certain types of criminals, the
insane, and the otherwise defective are regularly excluded. [Footnote:
For a fuller discussion of the suffrage, see Chapter XXXIII.]
540. QUALIFICATIONS OF REPRESENTATIVES.--The Federal Constitution
declares that a Representative must be at least twenty-five years of
age. He must have been a citizen for at least seven years, and at the
time of his candidacy must also be an inhabitant of the state from
which he is chosen. The House itself determines whether or not these
qualifications have been met. No state may add to the constitutional
qualifications, but through the force of custom a Representative is
almost always a resident of the district which he is chosen to
represent.
541. ELECTION OF REPRESENTATIVES.--The Federal Constitution permits
the legislatures of the several states to regulate the time, manner
and place of elections for its Representatives to Congress.
However, the Constitution reserves to Congress the right to alter
these regulations at its discretion. This right has been exercised
several times. Congressional statute has provided that Representatives
shall be elected on the Tuesday following the first Monday in November
of even-numbered years, and that the election shall be by written or
printed ballot. It is also in accordance with Congressional statute
that Representatives are selected on the district plan, one
Representative being chosen from each Congressional district in the
state. Congress has furthermore provided that these districts shall be
of as nearly equal population as possible, and that they shall be
composed of "compact and contiguous territory."
542. THE CONGRESSIONAL DISTRICT.--Subject to the above limitations the
legislature of each state may determine the boundaries of its
Congressional districts. The state legislature finds it necessary to
redistrict the state if the decennial census shows that the population
of the state has increased unequally in various sections, or in case
the apportionment act of Congress changes the state's representation.
In many cases states have redistricted their territory for
illegitimate reasons. The Federal provision with reference to
contiguous territory has been loosely interpreted: in many cases
territory is held to be contiguous if it touches the district at any
point. The requirement that districts shall be of nearly equal
population has often been disregarded altogether. Since the state
legislature is controlled by the political party having a majority,
the dominant party can arrange the district lines so as to secure a
party majority in the greatest possible number of districts. This is
done by concentrating the opposition votes in a few districts which
would be hostile under any circumstances, and so grouping the
remaining votes as to insure for the dominant party a majority in
numerous districts.
543. GERRYMANDERING.--The result of this illegitimate redistricting
has been to create districts of great irregularity. In 1812, when
Elbridge Gerry was Governor of Massachusetts, the Republican party was
in control of the state legislature. In districting the state so as to
win for themselves as many districts as possible, the Republicans gave
one of the Congressional districts a dragon-like appearance. To the
suggestion of a famous painter that this looked like a salamander, a
local wit replied that it was more nearly a Gerrymander. The term
"gerrymander" has since continued to be used to designate this type of
illegitimate redistricting. [Footnote: For the relation of
gerrymandering to the problem of minority representation, see Chapter
XXXV.]
544. TERM OF REPRESENTATIVES.--Representatives are elected for two
years, the legal term commencing on the 4th of March following the
election. Except in the case of a special session, the actual service
of Representatives does not commence until the first Monday in
December, thirteen months after election. Members are frequently
reëlected, the average term being about four years. When for any
reason a vacancy occurs in the representation from any state, the
Governor may, on the authority of the Federal Constitution, issue a
writ of election to fill the vacancy. A special election is then held
in the district in which the vacancy has occurred, and the
Representative so chosen serves for the remainder of the
term. [Footnote: The privileges and immunities of Representatives are
similar 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 exercised
exclusively by the Senate, the power to approve treaties is one of the
most important. All treaties negotiated by the President must be
approved by a two-thirds vote of the Senate before becoming law. The
treaty may be approved or rejected as a whole, or it may be rejected
in part, and additional articles recommended as amendments. If changed
in form or content by the Senate the treaty does not become law until
both the President and the foreign power have assented to the
amendment or change.
In order to become valid, a large number of Presidential appointments
must receive the approval of the Senate. [Footnote: See Chapter XL,
Section 518.]
The Senate exercises a special judicial function in that it may sit as
a court of impeachment for the trial of persons whom the House of
Representatives has formally charged with treason, bribery, or other
high crimes and misdemeanors. Excluding military and naval officers,
who are tried by court-martial, and excluding also members of
Congress, who are subject only to the rules of their respective
houses, all Federal officers are subject to impeachment. Impeachment
requires a two-thirds vote of the Senators present. Removal from
office and disqualification to hold any office under the United States
is the heaviest penalty which can be imposed upon an impeached
official.
546. SPECIAL POWERS OF THE HOUSE.--The House likewise enjoys three
special powers.
One of these is the right to elect a President of the United States in
case no candidate has a majority of the electoral votes. This has
happened only twice, in 1800, and again in 1824.
The Federal Constitution provides that all revenue bills must
originate in the lower house. However, the Senate has come to share
this power through its power to amend such bills.
The House of Representatives has the sole power to prefer charges of
impeachment, that is to say, to present what may be called the
indictment against the accused official. The case is then tried before
the Senate, the House appointing a committee of its own members to act
as the prosecuting agency.
547. GENERAL SURVEY OF THE POWERS OF CONGRESS.--The powers of
Congress, _i.e._ the two houses acting together, are of two kinds:
First, express powers, by which is meant those specifically enumerated
in the Federal Constitution; and second, implied powers, by which is
meant those which are incident to express powers and necessary to
their execution. The foundation of the doctrine of implied powers is
the constitutional clause [Footnote: Article I, Section VIII, of the
Constitution.] which authorizes Congress to make all laws "necessary
and proper" for carrying out the powers granted it by the Federal
Constitution.
Grouping express and implied powers together, the more important
powers of Congress may be summarized as follows:
_Revenue and expenditures_. Congress has the power to lay and collect
taxes, duties, imports, and excises, and to appropriate money in order
"to pay the debts and provide for the common defense and general
welfare of the United States." But indirect taxes must be uniform
throughout the United States, and all direct taxes, except income
taxes, must be apportioned among the states according to population. A
further limitation is that Congress may not tax exports from any
state, nor levy upon the "necessary instrumentalities" of any state
government.
_National defense_. Here the powers of Congress are practically
unlimited, except by the constitutional provisions that the President
shall be commander-in-chief, and that military appropriations shall
not be made for more than two years. Congress can raise and support
armies, create and maintain a navy, and provide for the organization
and use of the state militia. Congress may also declare war, and make
rules concerning captures on land and sea.
_Foreign relations_. Congress as a body has little direct control over
foreign relations, though the Senate shares the treaty-making power
with the President. But Congress has the power to create diplomatic
and consular posts, as well as "to define and punish piracies and
felonies committed on the high seas, and offences against the law of
nations." Congress also exercises control over immigration and
naturalization.
_Economic interests_. Congress may regulate commerce with foreign
countries, among the several states, and with the Indian tribes. The
exclusive power to coin money, and otherwise control the monetary
system, is vested in Congress. Congress may make uniform laws on
bankruptcy throughout the United States, and fix the standards of
weights and measures. The establishment of post offices and post
roads, and the protection of authors and inventors through legislation
on patents and copyrights, are also functions of Congress.
_Territories_. Congress has the power to dispose of, and make all
needful rules and regulations respecting, the territory or other
property belonging to the United States. Congress likewise exercises
exclusive control over the District of Columbia, and over all places
purchased by the Federal government for the erection of forts,
arsenals, and similar buildings. Congress also has the right to
determine the admission to the Union of new states, and "to dispose of
and make all needful rules and regulations respecting the territory or
other property belonging to the United States."
_Crime_. In criminal matters the power of Congress is slight. For
example, it cannot say what constitutes treason, since that crime is
defined by the Constitution. However, Congress may provide for the
punishment of counterfeiters and persons committing crimes on the high
seas or offences against international law. It may also define certain
crimes against Federal law, and prescribe penalties therefor.
_Control over the judiciary_. The judiciary is an independent branch
of government, but Congress may determine the number of Supreme Court
judges, fix their salaries within certain limits, and define their
appellate 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 authority
granted to it by the Constitution to make all laws which shall be
deemed necessary and proper for carrying into execution the powers
expressly granted to Congress by the Constitution. It is under the
authority of this clause, that the implied powers of Congress have
been so greatly expanded.
QUESTIONS ON THE TEXT
1. What influences are responsible for the fact that Congress is a
two-chambered body?
2. Discuss the term and qualifications of Senators.
3. How were Senators elected prior to 1913? How are they elected at
the 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 be
classified?
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_, chapters
xxii 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 Senate
shall retire every second year? (Reed, page 255.)
3. What criticism has been brought against the principle of the equal
representation of states in the Senate? (Guitteau, page 249.)
4. Compare the growth of the Senate with the growth of the House of
Representatives. (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 and
measures? (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, page
214.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Congressional districts in your state.
2. The biography of one of the Senators representing your state in
Congress.
3. Make a study of your Representatives in Congress, with respect to
their age, length of service, political principles, and attitude
toward such national questions as the tariff, military defense and
taxation.
4. A brief comparison of Congress with your state legislature.
II
5. Place of the Senate in our National government. (Reinsch, _Readings
on American Federal Government_, pages 127-134.)
6. The House of Representatives in the United States compared with the
British House of Commons. (Kaye, _Readings in Civil Government_, pages
149-155.)
7. Gerrymandering. (Beard, _Readings in American Government and
Politics_, pages 219-220; see any other standard text on American
Government.)
8. The immunities of Congressmen. (Cleveland, _Organized Democracy_,
chapter xxvii.)
9. Relation of the two houses of Congress. (Bryce, _The American
Commonwealth_, vol. i, chapter xviii.)
10. The Senate as a judicial body. (Bryce, _The American
Commonwealth_, vol. i, chapter x.)
11. Constitutional limitations on the powers of Congress. (Munro, _The
Government of the United States_, chapter xx.)
12. Relation of Congress to the President. (Bryce, _The American
Commonwealth_, vol. i, chapter xx.)
13. The war powers of Congress. (Any standard text on American
government.)
14. The taxing power of Congress. (Any standard text on American
government.)
15. Other financial powers of Congress. (Any standard text on American
government.)
16. The power to regulate commerce. (Any standard text on American
government. An excellent reference is Munro, _The Government of the
United States_, chapter xvii.)
17. The postal powers of Congress. (Young, _The New American
Government and its Work_, chapter xiii.)
18. The control of Congress over territories. (Kimball, _The National
Government of the United States_, chapter xxii. See also any other
standard 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 needs
of their local district as of more importance than the needs of the
nation as a whole?
21. Should the interval between the election of Representatives and
the meeting of Congress be shortened?
22. Should we retain equal representation of states in the Senate, or
should this principle be discarded as "undemocratic"?
CHAPTER XLIII
CONGRESS IN ACTION
A. ORGANIZATION OF CONGRESS
548. CONGRESSIONAL SESSIONS.--The Federal Constitution requires
Congress to assemble at least once a year, and Congress has provided
that the date of meeting shall be the first Monday in December. In
addition to such special sessions as may be called either by the
President or by Congress itself, there are two regular sessions. One
of these is the long session, from December of each odd year until
Congress adjourns, generally sometime during the following summer. The
other is the short session, beginning when Congress assembles in
December of each even year, and ending at noon on the 4th of March
following.
The two houses of Congress jointly fix the time for adjournment, but
in case they cannot agree upon this point, the President has the right
to adjourn them to such time as he thinks fit. During the
congressional session, neither house may, without the consent of the
other, adjourn for more than three days, nor to any other place than
that in which the two houses are sitting. Since 1800 congressional
sessions have regularly been held at Washington, D. C., the National
capital.
549. INTERNAL ORGANIZATION.--Each house of Congress has the right to
determine its own rule of practice, punish members for disorderly
conduct, and, by a two-thirds vote, expel a member. Members guilty of
acts of violence or abusive language may be punished by a vote of
censure, or may be obliged to apologize to the house. For the
commission of a grave offense, a Congressman may be expelled from the
house to which he was elected.
The Constitution requires that "each house shall keep a journal of
its proceedings, and from time to time publish the same, excepting
such parts as may in their judgment require secrecy; and the yeas and
nays of the members of either house shall, at the desire of one fifth
of those present, be entered upon the journal." The object of this is
to secure a permanent record of legislative action, as well as
publicity of proceedings. The vote by yeas and nays fixes
responsibility for his vote upon each member by making it a matter of
public record. The _Congressional Record_, an official account of
Congressional debates and proceedings, appears daily during
Congressional sessions. This is supposedly a verbatim report of what
is said in each house, but as a matter of fact members are allowed to
edit and revise their remarks before these are printed. In the case of
the House, many of the published speeches have never been delivered at
all.
550. THE OFFICERS OF CONGRESS.--In the House of Representatives the
chief officer is the Speaker, or presiding officer. The Speaker is
chosen from the membership of the House by that body itself. As will
be pointed out shortly, this officer is an important personage.
In the Senate the Vice President of the United States acts as the
presiding officer. In the absence of the Vice President, or in case
that officer succeeds to the Presidency, the Senate itself chooses a
president _pro tempore_ to occupy the chair. The presiding officer of
the Senate is much less powerful than the Speaker of the House, indeed
he is little more than a chairman or moderator.
There are a number of additional officers of Congress, who are chosen
by the respective houses from outside their own membership. These
officers include a clerk, who in the Senate is called the secretary;
the door-keeper; the sergeant-at-arms; the postmaster; and the
chaplain. Nominally these officers are chosen by each house, but as a
matter of practice the choice is made by the caucus of the majority
party, which is held a few days before the organization of each house.
551. THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.--A few days before
the organization of the House, the caucus of the majority party
settles upon its choice for Speaker. The candidate chosen invariably
receives the solid vote of his party in the House, since it is a rule
of the caucus that party members who take part in its discussions must
abide by its decisions.
As chairman of the House, the Speaker performs the customary duties of
a presiding officer. He opens and closes the sittings of the House,
maintains order, and decides questions of parliamentary law. The
Speaker acts as the official representative of the House in its
collective capacity, and authenticates all official proceedings by his
signature. It is he who announces the order of business, states the
question, and announces the vote. He also has the right to appoint the
chairman of the committee of the whole. The Speaker takes part in
debate and may also vote.
552. POWER OF THE SPEAKER OVER LEGISLATION.--In addition to performing
the customary duties of a presiding officer, the Speaker possesses
important powers over legislation. The imperfect organization of the
House, and its lack of effective leadership, as well as the vast
amount of business coming before it, have tended to centralize much of
the legislative power of the House in the hands of this officer.
The Speaker of the House has the power to determine to which committee
a bill shall be referred. Thus he may determine the fate of a measure
by 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 been
duly recognized by the chair. There are a number of unwritten rules in
this regard, but in the last analysis the Speaker may recognize only
persons whom he desires to have speak. Thus Congressmen who are not of
the Speaker's party may be kept from making themselves heard upon
important measures. When a bill is before the House, the chairman of
the committee in charge of the measure usually hands the Speaker a
list of Congressmen who are to be heard upon the floor. By recognizing
only those whose names appear on this list, the Speaker may confine
the discussion to members who are favored by himself and his party.
The Speaker has the power to decide points of order, and otherwise to
deal with such obstructions to legislative business as the
filibustering tactics of the minority party. Often this power is
exercised in connection with the quorum. The quorum or number of
members who must be present in order that business may be transacted,
is fixed by the Constitution as a majority of each house. Formerly it
was the habit of minority members to remain silent at roll-call, so
that if several members of the majority party were absent, it might be
that no quorum would appear. In such a case legislative business would
be blocked. But in 1890 Speaker Reed adopted the practice, since
become invariable, of counting as present members actually in the
House, whether or not they respond to their names at roll-call. The
Speaker also checks filibustering by disregarding all motions and
appeals which he thinks are made simply for the purpose of obstructing
legislative business.
553. THE COMMITTEE ON RULES.--Of great importance in the House is the
committee on rules. This committee has the power to decide upon the
order for considering bills, and to determine the length of debates.
It also determines the time when the vote shall be taken. This it does
by "reporting a rule," that is to say, by presenting a report as to
the time and conditions under which the House shall consider a
measure. This report takes precedence over all other business. Thus
the fate of a bill may be determined by the committee on rules.
Previous to 1910 this committee consisted of the Speaker, and two
majority and two minority members named by the Speaker. But in the
61st Congress, there occurred what has been called the "revolution of
1910." This "revolution" opposed Speaker Cannon's policy of using for
personal and partisan purposes his power to appoint the other members
of the committee on rules. As the result of a violent agitation the
House finally placed marked restrictions upon the Speaker's control
over the committee. The membership of the committee on rules was
increased, first to ten, and then to twelve. Of these twelve members
eight belong to the majority party and four are minority members. The
committee is no longer chosen by the Speaker, but is selected by the
House itself. The Speaker is even excluded from membership in the
committee.
554. THE CONGRESSIONAL COMMITTEE SYSTEM. [Footnote: For a discussion
of the advantages and disadvantages of the committee system see
Chapter XXXVI.]--In both houses of Congress the assembly is divided
into a number of committees, each of which is charged with the
consideration of legislation dealing with particular subjects.
Previous to 1911 the Speaker appointed all House committees, but since
that date all committees have been chosen by the House as a body,
though in practice the decisions are made by the caucuses of the
majority and minority parties, held just before the organization of
the House. Similarly, the Senate chooses its own committees from lists
drawn up by the caucuses of the two political parties. In either
house, the minority party has such representation upon committees as
the majority party chooses to allow. There are in the House more than
fifty of these committees, while in the Senate the number is even
larger. In the House of Representatives the more important committees
are those on rules, ways and means, appropriations, judiciary, banking
and currency, interstate and foreign commerce, and rivers and harbors.
B. THE MAKING OF A FEDERAL LAW [Footnote: A more detailed account of
the law-making process may be found in Reed, _Form and Functions of
American Government_, Chapter XXII.]
555. HOW LEGISLATION IS INITIATED.--The course of congressional
legislation may be illustrated by following a bill through the House
of Representatives.
Any member of the House may introduce a bill by filing it with the
clerk. The title of the bill is printed in the _Journal and Record_,
this constituting a first "reading." The bill is then delivered to the
Speaker, who refers it to the proper committee. Once a bill has
been passed to the committee its fate rests largely with that body.
The committee may confer with certain administrative officers, listen
to individuals interested in the subject, summon and examine other
persons, and then reach a decision upon the bill. The committee may
amend the bill as it pleases. If unfavorable to the measure, the
committee may report it adversely, or too late for legislative action.
Indeed, it may even fail to report it at all. Theoretically the House
may overrule the committee's decision on a bill, but so generally are
the committee's recommendations followed by the House that the adverse
action of the committee virtually kills a bill.
556. THE BILL IS REPORTED TO THE HOUSE.--Let us suppose that the
committee reports the bill back to the House. The measure is then
placed upon a calendar and here awaits its turn, unless the committee
on rules sees fit to direct the immediate attention of the House to
it. The second reading is an actual and full reading of the bill for
the purpose of allowing amendments to be offered. After the second
reading, which may result in the adoption of amendments, the Speaker
puts the motion, "Shall the bill be engrossed and read a third time?"
Debate is then in order. If the vote which follows is in the
affirmative, the bill is read a third time, but only by title. The
question of passage is put by the Speaker immediately after the third
reading.
557. DEBATE UPON THE BILL.--Debate in the House of Representatives has
little influence upon most bills, the fate of a measure being
practically determined by the committee considering it. Most speeches
are frankly intended for political purposes, and for circulation in
the Congressional Record, rather than as actual and positive
influences upon the bill which is being discussed.
Debate in the House is limited in several ways. No member may spend
more than an hour in debate upon any question, except the member in
charge of the bill. This member may have an additional hour at the
close. In the committee of the whole, speeches are limited to five
minutes. No member may speak more than once on the same subject
without special permission from the chair. The single exception to
this rule is the member who has introduced the bill. Before debate
begins, the chairman of the committee in charge of the bill arranges,
in consultation with the Speaker, a list of members who are to be
heard upon the bill. No other members are ordinarily recognized by the
Speaker in the ensuing debate.
After a certain amount of discussion the member in charge of the bill
will generally move the previous question in order to cut short the
debate and bring the House to a direct vote upon the question.
558. THE VOTE.--In the House voting may be by any one of three
methods. Voting may be by "sound of voices." In this case the Speaker
calls in turn for the "ayes" and "noes," and decides by the volume of
the sound whether the motion has been carried or lost. This is usually
the method first employed, but either of the other two methods may be
demanded before or after voting by sound of voices has been employed.
Voting may be by tellers. When this is decided upon the members pass
between tellers appointed by the Speaker--those in the affirmative
first--and are counted. This method requires the demand of one fifth
of a quorum.
Voting may be by yeas and nays. In this event, the clerk calls the
roll and each member, as his name is reached, answers "aye" or "no,"
the vote then being recorded. The Constitution provides that one fifth
of the members present may demand the yeas and nays. Since it takes a
long time to call the roll of the House, demands for roll-calls are
frequently employed by minorities with the intent of obstructing
legislative business.
559. THE BILL GOES TO THE SENATE.--A bill defeated in the House never
reaches the Senate, of course.
But if it receives a majority vote in the House, it is engrossed and
sent to the Senate. Here the bill goes through practically the same
stages as in the House. [Footnote: In the Senate, however, debate is
unlimited.]If the Senate rejects the bill, the measure is dead. If the
Senate passes the bill without amendment, it is returned to the House,
and enrolled on parchment for signature by the President. If the
Senate amends the bill, the bill and the attached amendments are
returned to the House. If the House disagrees with the proposed
changes, it may either ask for an inter-house conference, or it may
simply send a notice of its disagreement to the Senate. In the latter
case, the Senate either reconsiders its amendments, or asks for a
conference. In case of a conference, each house appoints an equal
number of "managers," who arrive at some sort of compromise, and
embody this in a report. This report is acted upon by each house in
separate session.
560. THE BILL GOES TO THE PRESIDENT.--Bills killed in Congress never
reach the President, but a measure duly approved by both houses is
then sent to the chief executive for his approval. If he signs it, the
bill becomes law. If he does not approve it, he may return it with his
objections to the house in which it originated. If this house votes
for the passage of the measure by a two-thirds majority, and if this
action is concurred in by the other house, the measure becomes law
over the veto of the President. If the President neither signs nor
returns the measure within ten days, it automatically becomes law.
However, measures reaching the President during the last ten days of
the congressional session become law only if signed by him. His
failure to sign a bill reaching him under these circumstances
constitutes 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? What
changes 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_, chapter
xxiv.
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 in
Congress? (Beard, pages 267-269.)
2. Discuss the constitutional rights of the minority in the House
of Representatives. (Beard, pages 288-289.)
3. What is the influence of the Senate upon our national financial
policy? (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 Senate
had upon legislative business? (Beard, pages 275-276.)
7. What is one of the most important defects of Congressional
legislation? (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 organization
of your state legislature.
2. Compare the officers of Congress with the officers of your state
legislature.
3. Compare the committee system of Congress with the committee system
in your state legislature.
4. Compare the practice of debate in the National House of
Representatives with the use of debate in the lower house of your
state legislature.
5. Compare Congress with your state legislature with respect to volume
of 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 of
Representatives_.)
10. The Speaker of the House. (Follett, _The Speaker of the House of
Representatives_.)
11. Leadership in the House. (Beard, _American Government and
Politics_, pages 280-286.)
12. The career of Speaker Clay, Blaine, Reed, or Cannon. (Consult an
encyclopedia, or special biographies of these Speakers.)
13. The House of Representatives at work. (Bryce, _The American
Commonwealth_, vol. i, chapter xiv.)
14. Congressional finance. (Bryce, _The American Commonwealth_, vol.
i, chapter xvii.)
15. The committee system in Congress. (Bryce, _The American
Commonwealth_, 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 United
States. (Bryce, _The American Commonwealth_, vol. i, chapter xvi.)
FOR CLASSROOM DISCUSSION
17. Should the Speaker of the House be deprived of the power to refer
bills to whatever committee he chooses?
18. Should the powers of the presiding officer of the Senate be
increased?
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 it
be restricted?
CHAPTER XLIV
THE FEDERAL COURTS
A. FRAMEWORK OF THE FEDERAL COURTS
561. CONSTITUTIONAL BASIS OF THE FEDERAL JUDICIARY.--The Federal
Constitution makes only slight reference to the structure of the
Federal courts. It merely provides that the judicial power of the
United States shall be vested in one Supreme Court, and in such
inferior courts as Congress may from time to time ordain and
establish.
In accordance with this provision, Congress in 1789 passed the
Judiciary Act, which still forms the basis of our Federal judicial
system. The Judiciary Act provided for the organization of the Supreme
Court, and also created a system of circuit and district courts. It
likewise distributed Federal jurisdiction among the three grades of
courts, established the office of Attorney General, and provided for a
Federal marshal in each judicial district. In order to relieve the
Supreme Court of part of its appellate jurisdiction, Congress in 1891
created nine circuit courts of appeals. In 1912, Congress abolished
the 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-one
district courts. In addition there are several special Federal courts.
562. FEDERAL JUDICIAL AGENTS.--All Federal judges are appointed by the
President, subject to confirmation by the Senate. They hold office for
life, or during good behavior. Since Federal judges can be removed
from office only by impeachment, they are relatively independent, both
of the appointing power and of the popular will.
Judges receive salaries which may be increased, but which cannot be
diminished, during their term of office. Each of the eight associate
justices of the Supreme Court receives an annual salary of $14,500,
while the Chief Justice receives $14,900 a year. Circuit judges
receive a salary of $7000 a year. Each district court judge receives
$6000 a year. Upon reaching the age of seventy years, any Federal
judge who has held his commission for at least ten years, may resign
and continue to draw full salary during the remainder of his life.
Some additional judicial agents may be mentioned. In each Federal
judicial district there is an United States marshal, who is charged
with the duty of enforcing the orders of the court. There is also in
each district a Federal prosecutor, who has the title of United States
district attorney. It is this officer who institutes proceedings
against persons violating Federal law. Both marshals and district
attorneys work under the direction of the Attorney-General of the
United States.
563. THE SUPREME COURT.--At the head of the Federal judicial system
stands the Supreme Court. This tribunal holds its annual sessions at
Washington, D. C., usually from October until May. By far the most
important business coming before this court involves questions of
constitutional law. [Footnote: Jurisdiction over questions of
constitutionality is a form of appellate jurisdiction. In addition,
the Supreme Court has original jurisdiction in (1) cases affecting
diplomatic and consular officers, and (2) cases to which a State is a
party. In practice, however, the original jurisdiction of the Supreme
Court has been relatively unimportant. ] Cases involving questions of
constitutionality are always brought up to the Supreme Court, from
either the lower Federal courts, or from the state courts. Cases of
this kind are brought before the Supreme Court either on appeal or by
writ of error.
When a case is submitted to the Supreme Court, each justice makes an
independent study of it, and a conference is then held, in which the
various 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 the
majority. In important cases, the disagreeing minority prepares a
"dissenting opinion," setting forth their reasons for believing that
the case should have been decided otherwise. This dissenting opinion
does not, however, affect the validity of the decision reached by the
majority of the justices.
564. THE CIRCUIT COURT OF APPEALS.--The United States is divided into
nine circuits, in each one of which a Circuit Court of Appeals
exercises jurisdiction. The Circuit Court consists of three judges. As
a general proposition this court has appellate jurisdiction to review
the decisions of the district courts, but in some instances cases may
be taken from the district courts directly to the Supreme Court of the
United States. In cases in which jurisdiction results from the fact
that the suit is one between an American citizen and an alien, or
between citizens of different states in the Union, the decision of the
Circuit Court of Appeals is generally final. The jurisdiction of this
court 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 is
the District Court. One of these courts exists in each of the eighty-
one districts into which the country is divided. For each district
court there is generally a separate district judge, who holds court at
one or more places within the district.
The matters which may be brought before a Federal District Court are
various. Among other things, the jurisdiction of the court extends to
all crimes and offenses cognizable under the authority of the United
States, cases arising under the internal revenue, postal and copyright
laws, proceedings in bankruptcy, all suits and proceedings arising
under any law regulating immigration, and also all suits and
proceedings arising under any law to protect trade and commerce
against monopoly.
566. SPECIAL FEDERAL COURTS.--Besides the three sets of Federal
courts described above, Congress has from time to time created a
number of special courts.
The Court of Claims was created in 1855. It consists of five justices,
sitting at Washington, and exercising jurisdiction over cases
involving claims against the United States.
In 1911 Congress created the Court of Customs Appeals, consisting of
five judges who may review the decisions of the Board of General
Appraisers with respect to the classification and taxation of imports.
Congress has also provided a system of territorial courts to handle
cases arising in the territories and in the District of Columbia.
Courts-martial for the trial of military and naval offenses have also
been provided for by congressional statute.
B. THE FEDERAL COURTS IN ACTION
567. JURISDICTION OF THE FEDERAL COURTS.--The Federal courts exercise
limited, rather than general, jurisdiction. That is to say, they have
authority to try only such cases as are specifically placed within
their jurisdiction by the Constitution, or by congressional statute.
Cases falling within the jurisdiction of the Federal courts may be
grouped under two heads: First, cases affecting certain parties or
persons, and second, cases relative to certain matters.
Under the first head may be grouped cases affecting ambassadors, other
diplomatic representatives, and consuls. In the same group are
controversies to which the United States is a party, controversies
between two or more states, controversies between a state and the
citizens of another state, controversies between citizens of different
states, 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, controversies
between citizens of the same state claiming lands under grants of
different states. Second, cases of admiralty and maritime
jurisdiction, and third, cases in law or equity arising under the
Constitution or laws of the United States, or treaties made under
their authority.
568. THE WRIT OF HABEAS CORPUS. [Footnote: For the general arrangement
of the material in Sections 568-570, I am indebted to Professor
Beard's _American Government and Politics_, to which text
acknowledgment is here made.]--In the exercise of their judicial
functions the Federal courts have the power of issuing three great
writs affecting the rights of citizens.
Of these the most famous is the writ of _habeas corpus_. This writ is
designed to secure to any imprisoned person the right to have an
immediate preliminary hearing for the purpose of discovering the
reason for his detention. Where the writ is properly issued, the
prisoner is brought into court for a summary examination. If it is
found 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 in
pursuance of a law of the United States or the order, process, or
decree of some Federal court or judge; third, when an individual has
been detained because of violation of the Constitution or some law or
treaty of the United States; and fourth, when a citizen of a foreign
country claims to be imprisoned for some act committed with the
sanction of his government.
569. THE WRIT OF MANDAMUS.--The writ of mandamus may be used against
public officials, private persons, and corporations, for the purpose
of forcing them to perform some duty required of them by law. Properly
used, the writ of mandamus is called into action to compel executive
officers to perform some administrative duty. The court will not
intervene, however, where the duty is purely discretionary and its
performance dependent either upon the pleasure of the official, or
upon his interpretation of the law. Usually the applicant for a writ
of mandamus must show that he has no other adequate legal remedy, and
that he has a clear legal right to have the action in question
performed by the officer.
570. THE WRIT OR BILL OF INJUNCTION.--This writ may be of several
distinct types. It may take the form of a mandatory writ, ordering
some person or corporation to maintain a _status quo_ by performing
certain acts. For example, striking railway employees may be ordered
to continue to perform their regular and customary duties while
remaining in the service of their employer.
The injunction may take the form of a temporary restraining order
forbidding a party to alter the existing condition of things in
question until the merits of the case have been decided. This is often
used in labor disputes.
Sometimes the writ is in the form of a permanent injunction ordering a
party not to perform some act, the results of which cannot be remedied
by any proceeding in law. This, too, has often been used in labor
disputes.
571. JUDICIAL INTERPRETATION OF THE STATUTES.--The crowning feature of
the American judiciary is its power to pass upon the constitutionality
of state and Federal laws. The Constitution does not give to the
courts the power to declare state or Federal statutes invalid on the
ground that they conflict with the Federal Constitution, but in the
famous case of Marbury _v._ Madison in 1803, Chief Justice Marshall
demonstrated that under the Constitution the Supreme Court must
possess the power of declaring statutes null and void when they
conflict with the fundamental law of the land. In deciding against the
validity of a law, the court does not officially annul it, but merely
refuses to enforce the statute in the particular case before the
court. Thereupon, the executive officials who might be charged with
the administration of that particular law, neglect to enforce it.
572. GENERAL POLICY OF THE FEDERAL COURTS.--The Federal courts have
consistently refused to decide abstract questions not presented in the
form of a concrete case between parties to an actual suit. The Supreme
Court, for example, will take no notice of a statute until the
question of its constitutionality arises in the form of a concrete
case.
The Federal courts have consistently refused to interfere in purely
political questions, the decision of which rests with executive or
legislative authorities. For example, the court will not touch
questions of the existence of war or peace, or the admission of a new
state into the Union.
In reaching a decision, two forces are brought to bear upon the
courts. First, the character of previous decisions in similar or
analogous cases influences a decision. Second, important consideration
is given the demands of justice or equity in the particular case in
hand, regardless of precedent. Generally speaking judicial decisions
strike a course midway between these two extremes.
QUESTIONS ON THE TEXT
1. What does the Federal Constitution say concerning the structure of
the 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 the
Federal 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_, chapter
xxviii.
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 the
United States? (Beard, page 300.)
4. What different grades of law are administered in the Federal
courts? (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, page
354.)
7. Distinguish between the original and the appellate jurisdiction of
the 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 down
by 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 powers
of Federal judicial agents, etc.
2. If possible, visit a near-by Federal court and observe the conduct
of a trial.
II
3. The American doctrine of judicial supremacy. (Haines, _The American
Doctrine of Judicial Supremacy_.)
4. The American system of courts compared with the European system of
courts. (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, _Readings
on American Federal Government_, pages 716-717.)
7. The courts and the Constitution. (Beard, _The Supreme Court and the
Constitution_; Bryce, _The American Commonwealth_, vol. i, chapter
xxiii.)
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, _Social
Reform 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 Civil
Government_, pages 247-250.)
14. Evolution of the judiciary. (Gettell, _Introduction to Political
Science_, 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 of
service be limited to a specific number of years?
18. Did the framers of the Constitution intend that the Supreme Court
should pass upon the constitutionality of Acts of Congress? (See
Beard, _The Supreme Court and the Constitution_.)
19. Do you believe that there should be any restriction upon the
present power of the Supreme Court to pass upon the constitutionality
of Acts of Congress?
20. In the leading European countries what corresponds to our Supreme
Court is divided into a number of sections. Do you believe that our
Supreme 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 fuller
discussion of the constitutional basis of state government, see
Chapter XXII of Beard's _American Government and Politics_. ]
573. CONSTITUTIONAL LIMITATIONS ON STATE GOVERNMENTS.--Under the
Articles of Confederation the states exercised practically sovereign
powers; in the interests of a strong National government the
Constitution adopted in 1789 distinctly limited the scope of state
government. The Federal Constitution transferred many important powers
from the states to the Federal government, and imposed certain
specific limitations upon state governments. The more important of
these limitations are as follows:
No state may, without the consent of Congress, lay or collect imposts
and duties upon exports and imports. The single exception to this
constitutional prohibition is that a state may lay such imports or
duties 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, or
instrumentalities of the Federal government. This is not a
constitutional limitation, but was deduced by Chief Justice Marshall
from the nature of the Federal system. In recent years, however, this
doctrine has been modified to mean that no state may tax a federal
instrumentality if such a tax would _impair its efficiency in
performing the function which it was designed to serve._
States may legislate concerning local commercial matters, but no state
may interfere with interstate commerce. No state may pass any law
impairing the obligation of contracts. The states have practically no
control over the monetary system. They may not coin money, emit bills
of credit, or make anything but gold and silver coin legal tender.
States may charter and regulate state banks, however, and may also
authorize a state bank to issue notes for circulation.
No state may make or enforce any law which abridges the privileges or
immunities of citizens of the United States. No state shall pass any
bill of attainder, by which is meant a legislative act which inflicts
punishment upon some person without ordinary judicial trial. Nor may
any state pass an _ex post facto_ law, that is to say, a law which
imposes punishment for an act which was not legally punishable at the
time when it was committed. Lastly, no state may deprive any citizen
of life, liberty, or property without due process of law, nor deny to
any person within its jurisdiction the equal protection of the law.
574. POWERS OF STATE GOVERNMENTS.--Federal law is the highest law of
the land, and no state constitution, state statute, or local law or
ordinance, may contravene it. But beyond this restriction, the
authority of the state is supreme. Just as state government must defer
to Federal authority, so local government is subservient to state
authority. Just as the Federal Supreme Court may declare
unconstitutional any executive or legislative act, either of the
National, state, or local authorities, so the Supreme Court of any
state may declare null and void the acts of state or local authorities
which conflict with its constitution. Though they are limited by the
Federal Constitution in matters which are preeminently national, the
states reserve to themselves a vast body of authority. Almost all of
the ordinary activities of life are controlled by state or local
governments, rather than by the Federal government.
575. CLASSIFICATION OF STATE CONSTITUTIONS: ACCORDING TO AGE.--Each
of the forty-eight states in the Union has a written constitution. To
bring out the fundamental similarities and differences among the
various state constitutions, these documents may be classified in
two ways, first as to age, and second, in the light of democratic
development.
If state constitutions are classified on the basis of age, it will be
noted that the constitutions of Massachusetts, Connecticut, Rhode
Island, and other New England states show signs of having been
strongly influenced by colonial precedents. Next come constitutions
which in form and general content stand midway between the earlier New
England constitutions and those of more recent years. The
constitutions 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 states
which have been revised within the last quarter of a century. Finally,
we may note that California, Oregon, Oklahoma and a few other western
states have recently drafted new constitutions in which there has been
a more or less radical departure from the precedents set in the older
commonwealths.
576. CLASSIFICATION OF STATE CONSTITUTIONS: IN THE LIGHT OF DEMOCRATIC
DEVELOPMENT.--Between 1776 and 1800 American state constitutions were
generally brief and conservative. Between 1800 and 1860 the growing
tendency toward democratic control resulted in the formation of state
constitutions which were more and more liberal. During this period
fear of the masses was superseded by distrust of the executive and an
unbounded faith in the people acting in their collective capacity. The
suffrage was extended, the governor and often state judges came to be
elected by direct vote, and the power of the state legislature was
enlarged.
After 1860 there was a reverse movement. This was due partly to a
growing faith in the executive, and partly to a reaction against the
abuse of power by state legislatures. Particularly the more recent
state constitutions have limited the power of the state legislature,
increased the power of the executive, provided for the centralization
of the state administration, and shortened the ballot. The present
tendency among state constitutions is to continue in the direction of
the above-mentioned reforms.
A. THE PARTS OF A STATE CONSTITUTION
577. THE BILL OF RIGHTS.--A vital part of a state constitution is the
bill of rights, roughly corresponding to the first ten amendments to
the Federal Constitution. Generally the bill of rights affirms the
principle of republican government, maintains that all powers are
inherent in the people, and declares that all free government is
formed by the authority of the people. A typical bill of rights also
provides that the laws of the state shall not be suspended except by
the legislative assembly, and includes the traditional limitations on
behalf of private rights. These include the right of free speech; the
right to jury trial; the free exercise of religious worship; the right
peaceably to assemble and petition the government for redress of
grievances; the privilege of the writ of _habeas corpus_ except in
case of rebellion, invasion, or public danger; the prohibition of
excessive bail, and cruel and unusual punishments; and compensation
for private property when taken for public use.
578. THE FRAMEWORK OF GOVERNMENT.--A second part of a typical state
constitution deals with the distribution of powers, the limitations
upon state officials and other elements in the framework of
government. Especially in the more recent constitutions is the form of
state government outlined in considerable detail. In addition to
providing a system of checks and balances by separating the executive,
legislative, and judicial powers of state government, this part of the
constitution defines and limits the suffrage, provides for the
organization of the state legislature, and prescribes the limitations
under which the legislature must operate. The election of the Governor
and other important state officials is provided for, as is the
relation of rural and municipal government to the state government.
This part of the constitution likewise creates the state judicial
system, though the regulation of details with regard to jurisdiction,
procedure, and appeals is generally left to the discretion of the
state legislature.
579. STATE FINANCES.--A third division of a typical state constitution
places a number of limitations upon the financial powers of the state
legislature. These provisions are often detailed and complicated and
hence are difficult to summarize. Their general purpose, however, is
to fix a debt limit beyond which the legislature cannot go, and to
compel that body to make adequate provision for the payment of
interest and principal in the case of debts which shall be incurred.
580. CONTROL OF ECONOMIC INTERESTS.--The more recent state
constitutions provide in considerable detail for the regulation of
economic interests within the state. The activities of industrial
organizations are often narrowly restricted. In many states the
constitution provides for a corporation commission with large powers
in the regulation of rates and charges, as well as general supervision
of corporate business. Many recent constitutions specify the
conditions under which women and children may be employed in
industrial establishments.
581. PROVISION FOR THE GENERAL WELFARE.--An increasingly important
part of the state constitution deals with the general welfare. Such
vital concerns as the public school system are dealt with. In a
typical western state, for example, the constitution requires the
legislature to provide free instruction in the common schools of the
state for all persons between the ages of five and twenty-five. The
same document sets aside certain revenues for educational purposes.
The safeguarding of the public health, and detailed provision for the
creation and maintenance of public institutions for the dependent,
defective, and delinquent classes, are other concerns of this part of
the state constitution.
582. PROVISION FOR AMENDMENT.--In about two thirds of the states the
constitution provides for its own amendment by a constitutional
convention composed of delegates elected by the voters of the state.
The convention method is universally employed when a new constitution
is desired. Sometimes the state constitution provides for the holding
of such conventions at regular intervals, but generally the initiative
is left to the legislature. When, by vote or by resolution, this body
declares in favor of a convention, the proposition is placed before
the voters. If a majority of these favor the project, the legislature
arranges for the election of delegates, and fixes the time and place
of the convention sessions. After the convention has completed its
work, it is customary for the new constitution to be submitted to the
people for approval.
Another common way of amending the state constitution, found in every
state except New Hampshire, is through legislative action subsequently
ratified by popular vote. By this method separate constitutional
amendments may be adopted, without necessitating a wholesale revision
of the constitution. Such individual amendments are usually proposed
by the legislature and are later submitted to popular vote. In some
states only a majority vote of the legislature is required for the
proposal of amendments, but ordinarily a special majority of two
thirds or three fourths of the members of each house is required. In a
few states, amendments cannot be considered until they have been
proposed by two successive legislatures. After the amendment has been
proposed for the second time, it must be ratified at the polls.
Within the last decade several states, particularly in the West, have
adopted a more direct method of amending the constitution. This is
through the Initiative and Referendum. [Footnote: The general question
of the Initiative and Referendum is treated in Chapter XXXVII.] In
Oregon, for example, 8 per cent of the legal voters may petition for a
proposed amendment to the constitution. The proposal is then submitted
to the voters, and if it receives a majority of all votes cast, it
becomes part of the state constitution. Arizona, Arkansas, California,
Colorado, Michigan, Missouri, Nebraska, Nevada, North Dakota, and
other states allow this type of constitutional amendment.
QUESTIONS ON THE TEXT
1. What are the chief limitations imposed upon state governments by
the 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 of
democratic development.
5. What is the nature of a "bill of rights"?
6. Discuss the framework of government as provided for in the state
constitution.
7. What provision for state finances does a typical state constitution
contain?
8. What are some of the provisions in state constitutions concerning
economic interests?
9. How may a state constitution provide for the general welfare?
10. Describe the three ways in which state constitutions may be
amended.
REQUIRED READINGS
1. Beard, _American Government and Politics_, chapter xxii.
2. Guitteau, _Government and Politics in the United States_, chapter
viii.
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 state
constitutions 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 state
constitutions be divided? (Guitteau, page 86.) 5. Discuss the check
and balance system as provided for in the constitutions of the various
states. (Guitteau, page 89.) 6. What authority controls the admission
of new states into the Union? (Beard, pages 443-445.) 7. What does the
constitution of Oklahoma say concerning the writ of _habeas corpus_?
(Beard, page 449.) 8. Describe the procedure in a constitutional
convention. (Munro, pages 410-411.) 9. What is the relation of the
state constitution to the state courts? (Beard, pages 452-453.) 10.
Enumerate the principles which commonly govern the attitude of the
state courts toward the acts of the state legislature. (Beard, pages
452-453.)
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 of
your state.
4. Methods by means of which your state constitution may he amended.
5. Classify and briefly characterize the amendments which have been
appended to the constitution of your state.
II
6. Meaning of the term "constitution." (Gettell, _Readings in
Political Science_, pages 282-283.)
7. Types of constitutions. (Gettell, _Readings in Political Science_,
pages 284-285; Kimball, _State and Municipal Government in the United
States_, chapter ii.)
8. Methods of amending constitutions. (Gettell, _Readings in Political
Science_, 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. (Massachusetts
Constitutional Convention Bulletins, No. i. Hoar, _Constitutional
Conventions._)
11. Recent changes in constitutions. (Dealey, _Growth of American
State Constitutions from 1776 to the end of the Year 1914._)
12. Present tendencies in state constitutions. (Reinsch, _Readings on
American State Government_, pages 443-449.)
13. The constitution of Oklahoma. (Reinsch, _Readings on American
State Government_, pages 450-464.)
14. A comparison of constitutional amendment in Europe and
constitutional amendment in the United States. (Borgeaud, _Adoption
and 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 activities
of the state governments?
19. Does the bill of rights in your state constitution adequately
protect your rights?
20. Does the constitution of your state too narrowly restrict the
financial powers of the state legislature?
21. Is your state constitution too easy of amendment? Is it too
difficult of amendment?
22. Recent state constitutions tend to be very long and detailed. What
are 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 the
Governor is elected by popular vote. In most of the states this
election takes place, together with that of other state officials, on
the Tuesday following the first Monday in November. Usually a
gubernatorial candidate is required to be at least thirty years of
age. He must be a United States citizen, and also a resident of his
state of at least five years' standing.
The Governor's term varies from two years in Massachusetts to four
years in more than twenty states. In general, the term of office is
increasing. The average salary received by a state Governor is $5000 a
year.
584. LIMITATIONS UPON THE GOVERNOR.--A number of factors operate to
limit the power of the state Governor.
The Federal Constitution limits his authority by declaring that
persons charged with crime in, and escaped from, a neighboring state,
must be delivered up to the executive authorities of the state in
which the crime is charged to have been committed.
The executive power of state government is not concentrated under the
Governor, but is shared by the Governor with a host of administrative
officials. 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 primarily
with municipal and other local officials, and over these officers the
Governor has little or no control. The express powers of the President
of the United States have been rather liberally interpreted by the
courts, but the powers of the state Governor have generally been
construed in a narrow and literal sense. In many states the power of
the Governor rarely or never extends beyond the express limits imposed
by the state constitution.
585. EXECUTIVE POWERS OF THE GOVERNOR.--The Governor is charged by the
state constitution to see that the laws are faithfully executed. This
is similar to the chief duty of the President of the United States,
but whereas the President is aided by subordinate administrative
officials over whom he has complete control, the Governor must act
through a large number of state and local officials over whom he has
little effective control.
Of some value, however, is the power of the Governor to exercise
general supervision over the various executive officers of the state.
He enjoys, in addition, the power to appoint many of the subordinate
administrative officials. Usually these appointments must be confirmed
by the upper house of the state legislature. In most cases the
Governor cannot remove officials so appointed without the consent of
the 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 with
domestic violence, he is empowered to call out the militia. In this
connection, the Governor has the power of suspending the writ of
_habeas corpus_, though most states declare that this writ may not be
suspended except in times of rebellion and invasion. Two or three
states have recently provided that the writ of _habeas corpus_ may not
be suspended in any case whatsoever.
586. LEGISLATIVE POWERS OF THE GOVERNOR.--In general the Governor
occupies the same relation to the state legislature, as does the
President toward Congress. Thus the Governor may send periodic
messages to the legislature, and may recommend such legislative
measures as he believes desirable. The Governor often communicates
with the legislature concerning the financial condition and needs of
the state. The Governor may also call special sessions of the state
legislature, for the consideration of urgent matters. In case the two
houses of the legislature are unable to agree upon a time for
adjournment, the Governor may adjourn the state legislature.
In one respect the Governor's power of veto exceeds that of the
President, for in about two thirds of the states the Governor may veto
individual items in appropriation bills. This privilege is denied the
President, who must accept or reject a measure as a whole. Like the
President, the Governor influences legislation through his relations
with the leaders of his party in the legislature, as well as through
his power of the patronage.
587. JUDICIAL POWERS OF THE GOVERNOR.--In almost every state the
Governor has considerable control over the issuance of pardons and
reprieves, in the case of all offenses committed against the state. In
some states the power to issue pardons and reprieves is exercised with
the consent of the state legislature, in other states the Governor
shares this power with a board of pardons; in a few states the
Governor may act alone.
588. TENDENCY OF THE GOVERNOR'S POWER TO INCREASE.--The earlier state
constitutions tended to restrict the powers of the Governor, and to
extend liberal grants of power to the state legislature. Of recent
years the abuse of legislative power has tended to encourage suspicion
of the legislature and a growing confidence in the Governor. As a
consequence, the Governor's term is in many states increasing. In the
effort to shorten the ballot and concentrate responsibility for the
state administration upon some one official, various states are
increasing the appointive power of the Governor. In a few states the
Governor now has authority to make special inquiries into the workings
of the various executive departments, with a view to checking
inefficient and irresponsible methods of work. In some states the
Governor's share in budget-making is increasing. In the majority of
states the general tendency toward a shorter ballot, the
reorganization of the state administration, and other methods of
reforming state government, will probably continue to enlarge the
power and influence of the Governor.
B. THE STATE ADMINISTRATION
589. THE OLDER GROUP OF ADMINISTRATIVE OFFICERS.--Aside from the
Governor, the administrative officers of the state fall into two
groups: First, the older officers, who are relatively few, and who are
almost always elective; and second, the newer officers, boards, and
commissions, who are relatively numerous, and who may be either
elective or appointive.
The first group comprises such officers as the Lieutenant Governor,
the Secretary of State, the State Treasurer, the Auditor or
Comptroller, and the Attorney-General. These older officers are
usually elected at the general state election for a term varying from
state to state. These officers are not under the control of the
Governor, but fulfill duties prescribed by the constitution, and are
responsible only to the people and to the courts. They may be, and
often are, of a different political party than the Governor, and since
they are not under the control of that official, they often work at
cross-purposes with him. This lack of coördination is in striking
contrast to the harmony of action existing between the President of
the United States and the heads of the Federal Executive Departments.
590. THE NEWER GROUP OF ADMINISTRATIVE OFFICERS.--As state government
has increased in complexity, the older group of administrative
officers has been supplemented by the addition of a large number of
new officers.
These newer administrative officials are quite numerous, but their
general character may be indicated by dividing them into two classes:
The first class includes individual officers, such as, for example, a
superintendent of prisons, a state architect, a state historian, a
commissioner of health, a food inspector, a geologist, a commissioner
of corporations, a commissioner of banking, a superintendent of public
works, and a state surveyor.
Besides individual officers, the newer group of administrative
officials includes a large number of boards and commissions which have
been created by the state legislature and endowed with large powers
for the study and control of specific matters. The following boards
and commissions are examples of this second class: A state civil
service commission, a tax commission, a board of charities and
correction, a water supply commission, a tax equalization board, a
quarantine commission, a voting machine commission, a board of
pharmacy, a highway commission, and a public service commission.
591. DEFECTS OF STATE ADMINISTRATION. [Footnote: For a fuller
discussion of this problem, see Chapter XXXVI.]--The enlargement of
the state administration by this creation of numerous individual
offices, boards, and commissions indicates an attempt on the part of
state governments to grapple with the problems of democracy.
Nevertheless, this rapid growth of the state administration has had
serious consequences. Once created, many of the newer officers have
attempted to perpetuate themselves. State legislatures have been
harassed by boards and commissions seeking unnecessary appropriations.
Politicians without expert training or ability are often placed on
boards and commissions dealing with technical matters.
Responsible and efficient state government is rendered difficult by
the inability of the Governor effectively to control the few elective
officials who constitute the older group of administrative officers;
an even greater difficulty arises from the creation and expansion of
the newer group of officers. The excessive number of individual
officers, boards, and commissions makes for inefficient and
irresponsible government. Some of these officials are elected by the
people, others are appointed by the Governor. Their terms vary so
widely that, as Professor Beard has pointed out, the appointing power
never has an opportunity to make a clean sweep and introduce more
efficient administrative methods. There is little or no coördination
between the various administrative offices, and very little
centralization of responsibility.
592. THE STATE OF CIVIL SERVICE.--The spoils system has long
constituted a defect, not only in the Federal government but in
American state government as well. [Footnote: This problem is further
discussed in Chapter XXXIV.] And as in the case of the National
government, this evil has been attacked primarily through the merit
system. New York state led the way in 1883 by passing a comprehensive
Civil Service Act. This law provided for a commission authorized to
coöperate with the Governor in preparing rules, classifying the state
civil service, and conducting the examinations for the positions to be
filled. Since then, Massachusetts, Wisconsin, Colorado, New Jersey,
California, Ohio, Illinois, and other states have adopted some type of
civil service system.
State civil service laws are largely modelled after the national Civil
Service Act of 1883. In most of the legislating states laws of this
type provide for competitive examinations of a practical nature; they
prohibit political and religious interrogatives; and they forbid the
assessment of holders of civil service positions for political
purposes. Appointment and promotion are upon the basis of merit,
although as in the case of the Federal civil service, the standards
for judging the character and capacity of individual officeholders
have 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, page
490.)
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, pages
508-509.)
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 of
state 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 the
United States upon the National legislature, and the influence exerted
upon 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 of
American State Administration_, chapter iii.)
9. The veto power of the Governor. (Munro, _The Government of the
United States_, pages 435-438.)
10. Some special functions of the Governor. (Mathews, _Principles of
American State Administration_, chapter v.)
11. The administrative power of the Governor. (Mathews, _Principles of
American State Administration_, chapter iv.)
12. Relation of the Governor to law enforcement. (Reinsch, _Readings
on 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 of
the United States,_ chapter xxxi; Kimball, _State and Municipal
Government in the United States,_ chapter ix.)
15. The selection of state officials. (Mathews, _Principles of
American State Administration,_ chapter viii.)
16. The removal of state officials. (Mathews, _Principles of American
State Administration, Principles of American State Administration,_
chapter ix.)
FOR CLASSROOM DISCUSSION
18. Should the veto power of your state Governor be still further
restricted? Should it be enlarged?
19. Should the administrative offices in your state be reorganized and
consolidated?
20. Ought the merit system in your state to be extended?
21. Advantages and disadvantages of choosing administrative officials
by direct vote.
CHAPTER XLVII
THE STATE LEGISLATURE
593. STRUCTURE OF THE STATE LEGISLATURE.--The representative branch of
state government is known under different names in various states, but
the term "state legislature" is in more or less general use.
The state legislature is invariably a two-chambered body; the upper
house is the smaller and is called the senate, while the lower and
more numerous branch is variously known as the house of
representatives, house of delegates, or assembly.
Usually the state senate differs from the lower house in certain
important particulars. The senatorial districts from which members of
the upper house are elected are always larger than are the districts
from which members to the lower house are chosen. Senators are usually
chosen for longer terms than are representatives. As in the case of
the National Senate, the senate (in most states) is made a continuous
body by the provision that its members shall begin their terms at
certain periodic intervals. In the lower house of the state
legislature, on the other hand, all of the members take their seats at
the same time.
594. BASIS OF REPRESENTATION.--For the purpose of electing members of
the state legislature, practically all of the states are divided into
numerous senatorial and representative election districts. Some states
apply the rule that representatives in the state legislature shall be
apportioned among districts containing practically an equal number of
inhabitants.
Other states, however, provide exceptions to this rule. For example,
Alabama, Florida, New York and other states provide that each county
shall have at least one member in the house. Often the result of this
arrangement is that the smaller or more sparsely populated counties
are over-represented in the state legislature, while the more populous
counties are under-represented.
Several states, notably Connecticut and Vermont, arrange
representation in the state legislature so that with respect to
population, cities are under-represented and rural districts are over-
represented. [Footnote: For a discussion of the problem of minority
representation in state legislatures, see Chapter XXXV.]
595. MEMBERSHIP.--The state constitution determines the qualifications
of 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 state
legislator is also eligible to membership. However, holders of both
Federal and state offices are excluded from sitting in the state
legislature.
In some states the term of a senator is the same as that of a
representative, but generally senators are elected for a longer term
than are members to the lower house. Representatives are generally
chosen for two years, senators for four.
In all states, members of the legislature are paid, either a fixed
annual salary or a _per diem_ allowance based upon the length of the
legislative session. In most states senators and representatives
receive equal compensation.
All state legislators are privileged from arrest or civil process
during the session. In addition they enjoy the usual privilege of free
speech in their official capacities.
596. ORGANIZATION.--Formerly state legislatures met annually, but at
present the great majority convene only once in two years. In the
effort to cut down the amount of superfluous legislation, a number of
state constitutions now restrict the legislative session to from forty
to ninety days. The legislature may adjourn itself to meet later in
special session, or the Governor may call special sessions. The
Governor may adjourn the legislature, if the two houses fail to agree
upon a time for adjournment.
In internal organization, the state legislature resembles Congress.
Except that the lieutenant governor is often the presiding officer of
the senate, each house chooses all of its own officers. Each house
determines its own rules of procedure and keeps a journal of its
proceedings. In addition, each house exercises the right of deciding
upon the qualifications of its members, and disciplines and punishes
its members for misconduct. As in the national legislature, work is
expedited by the committee system. The party is a dominant force in
the state as well as in the national legislature.
597. POWERS OF THE STATE LEGISLATURE--The law-making powers of the
state legislature extend to practically all subjects. The presumption
is that this body has a right to legislate upon any subject, unless
specific prohibitions have been imposed upon it by either the Federal
or the state constitution.
The Federal Constitution forbids any state legislature to emit bills
of credit, coin money, or pass laws impairing the obligation of
contracts. Neither bills of attainder nor _ex post facto_ legislation
may be enacted by a state legislature. The Federal Constitution
likewise declares that state legislatures may neither abridge the
privileges and immunities of citizens of the United States, nor
deprive persons of life, liberty, or property without due process of
law. No state may deny to any person within the state jurisdiction the
equal protection of the laws.
Restrictions imposed by the state constitution fall into several
groups. These include restrictions in favor of trial by jury,
religious freedom, and other privileges usually embodied in a bill of
rights; provisions controlling the grant of special favors to
corporations; restrictions upon the financial powers of the state
legislature; provisions defining the framework of state government;
and prohibitions upon the power of the legislature to pass special and
local laws. [Footnote: A special or local law is one which applies to
some particular individual or corporation, or to some particular city,
county, or other locality. Prohibitions upon special and local laws
are necessary in order to prevent the legislature from extending
special favors to particular individuals or localities. ]
598. HOW A STATE LAW IS MADE.--Bills may originate in either house of
the state legislature, except that in most states money bills must
originate in the lower chamber.
To illustrate law-making in the state legislature, let us assume that
a bill is introduced in the lower house. This may be done by any one
of several methods. Any member of the house may deposit a bill in a
box near the speaker's desk. Sometimes a bill is introduced by the
report of a committee, or even by a messenger from the senate. When
the bill has been introduced, it is given a first reading. With the
consent of the house, the speaker then refers the measure to the
appropriate committee. The adverse report of the committee generally
kills the bill; but if the bill is favorably reported, and this report
is approved by the house, the bill is placed on the order of second
reading and is debated section by section, unless by unanimous vote it
is advanced to the third reading. If the bill passes the second
reading, it is generally referred to the committee on revision. It is
then engrossed, reported back to the house for the third reading and
the final vote. Sometimes the yeas and nays of this final vote are
entered upon the journal, so that responsibility may be fixed upon
each member.
The bill then goes to the senate, where the procedure is very much
like that of the house, except that the committee of the whole
sometimes takes the place of the order of the second reading as
conducted in the house.
599. THE BILL GOES TO THE GOVERNOR.--In every state except North
Carolina, a bill which has passed both branches of the legislature
must then go to the Governor for approval. If this officer signs it,
it becomes law. If he disapproves of it, he returns it with his
objections to the house in which it originated. In spite of this
objection by the Governor the legislature may enact the measure into
law, if a sufficiently large majority in each house votes in favor of
the bill. This majority is usually two thirds of the members in each
house.
Generally the Governor has a ten-day period in which to consider
bills. If a bill is not returned to the legislature with his
objections within this period, it automatically becomes law without
his signature, unless the adjournment of the legislature prevents its
return to that body. In most states the Governor has the important
privilege of vetoing particular items in appropriation bills, while
sanctioning the rest of the measure.
600. DEFECTS IN STATE LEGISLATION. [Footnote: For a fuller discussion
see Chapter XXXVI.]--There is, among students of American government,
a general agreement that the legislative procedure of the various
states evidences a number of serious defects.
One of these defects is the absence of responsibility. Any member of
the state legislature may introduce as many bills as he likes, but he
need not assume responsibility for any of them.
Another serious evil is the lack of experience and technical skill on
the part of legislators. Legislators are frequently ignorant of the
subject matter with which they are called upon to deal. There is a
tendency for legislators to ignore the effect of a new statute upon
the existing body of law. Nor is the constitutionality of the measure
contemplated always taken into account. Ill-advised and pernicious
legislation is the result.
Log-rolling and lobbying constitute another defect of state
legislation. Log-rolling leads to the passage of numerous bills
without their adequate scrutiny by individual members, and without
either individual members or legislative committees assuming
responsibility for those measures. The pressure exerted upon state
legislatures for legislation favoring special interests is still
great.
601. THE REFORM OF LEGISLATIVE PROCEDURE.--A few states have attempted
to overcome the lack of technical information on the part of
legislators by providing for expert bill drafters. In New York, for
example, the state legislature has been provided with a number of
competent bill drafters whose duty it shall be, during the session of
the legislature, to draw bills, examine and revise proposed bills, and
advise as to the legal effect of any legislation. These bill drafters
may 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 which
keeps a careful record of the laws passed in the various states of the
Union. This bureau maintains a library, and issues bulletins for the
guidance of legislators.
In 1909 Wisconsin created the office of reviser. This officer keeps a
loose-leaf system of laws, and collects court decisions affecting
statutes. At the beginning of each session this officer also presents
to the committees on revision of each house of the legislature, bills
providing for such consolidation and revisions as may be completed
from time to time. The reviser supervises the preparation, printing,
and binding of such compilations of particular portions of the
statutes as may be ordered by the head of any state department.
There is an increasing tendency to curb lobbying in state
legislatures. The laws of New York and Wisconsin may be taken as
typical. That of New York provides that every person retained or
employed for compensation as a counsel or agent by any person, firm,
corporation, or association, to promote or oppose, directly or
indirectly, the passage of any bill or resolution, must be registered
every year in the office of the secretary of state, and must give the
name of the person by whom he is retained. The Wisconsin law provides
that legislative agents or counsels may not attempt to influence
members privately, but must confine themselves to arguing before
committees and filing printed briefs with the members of the
legislature.
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 the
national 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_, chapter
ix.
3. Munro, _The Government of the United States_, chapter xxix.
4. Reed, _Form and Functions of the United States Government_, chapter
xi.
QUESTIONS ON THE REQUIRED READINGS
1. Under what four heads may the limitations on state legislatures be
grouped? (Guitteau, page 101.)
2. What limitations are imposed upon state legislatures by the
republican 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, page
428.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. A comparison of the upper with the lower house of your state
legislature.
2. Gerrymandering in your state.
3. Occupations and professions represented in the membership of your
state legislature.
4. The character of legislation recently enacted by your state
legislature.
II
5. Development of the law-making department. (Gettell, _Readings in
Political Science_, pages 341-342.)
6. General principles of legislative organization. (Gettell, _Readings
in Political Science_, page 343.)
7. Advantages of the bicameral system. (Gettell, _Readings in
Political Science_, page 344.)
8. The function of the legislature. (Gettell, _Readings in Political
Science_, page 357.)
9. The lobby. (Reinsch, _Readings on American State Government_, pages
79-84.)
10. Financial procedure in state legislatures. (Reinsch, _Readings on
American State Government_, pages 56-61.)
11. The actual work of making a law. (Reed, _Form and Functions of
American Government_, chapter xii.)
12. Legislative apportionments. (Reinsch, _American Legislatures and
Legislative Methods_, chapter vii.)
13. Obstacles to intelligent law-making. (Gettell, _Readings in
Political 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 American
State 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, _American
Legislatures and Legislative Methods_, pages 275-298.)
FOR CLASSROOM DISCUSSION
18. Would shortening the length of the legislative session improve the
character of legislation in your state?
19. Should members of the state legislature be residents of the
districts from which they are chosen, or should they be chosen on a
state-wide ticket?
20. Should our state legislatures be made unicameral? (See Munro, _The
Government 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 of
jurisprudence is the English common law. This law is not found in the
enactment of statutes, but consists of court decisions spread over
several centuries. The common law has been defined as "that rule of
civil conduct which originated in the common wisdom and experience of
society," and which "in time became an established custom, and has
finally received judicial sanction and affirmance in the decisions of
the 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 its
development in early England, and with the settlement of America was
transplanted to this country. Though radically modified by American
constitutional and statutory enactments it still remains the basis of
our legal system.
603. EQUITY.--Common law tended to become so stereotyped and so
inflexible that in some cases an application of the law worked an
injustice. Very early in English history this situation gave rise to a
new form of jurisprudence called equity. Equity is that legal system
which supplements common and statute law by aiming to secure justice
where a strict application of law would work an injustice. Equity
developed in England after the Norman Conquest, and, like the common
law, was transferred to this country in colonial times. A distinct set
of chancery or equity courts was created to administer equity in early
America, but at present equity is administered by the same judges that
preside over the regular state law courts. Both equitable and legal
relief may be secured in one suit.
604. STATUTES.--Another important source of law is the statutes
enacted by the state legislature. Most state laws relate to the
structure and functions of government, but statutory enactment is also
employed to regulate a few branches of private law, including
principally matters which affect the public at large as well as
private individuals. Examples are laws relating to wills and
succession to property, marriage and divorce, partnerships, and
corporations.
The scope of the statutes is widening, and during the last half
century several fields of the common law have been covered by statute.
Criminal law, criminal procedure, and civil procedure have been
codified in various states. Some states have attempted to codify the
entire civil law, but experience has proved that this may easily
render the law too rigid.
605. OTHER SOURCES OF LAW.--The state constitution, the Federal
Constitution, and Federal laws and treaties with foreign countries are
other sources of state law.
In summary, the various kinds of law which are enforceable in the
state courts may be considered as forming a pyramid, built upward by
the following steps: English common law, equity, state statutes, the
state 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 a
progressive series. At the bottom of this series is the justice of the
peace, who exercises jurisdiction over petty offenses and over civil
cases involving very small amounts. Generally there is a justice of
the peace in each township or other local district. In large cities
the civil and criminal jurisdiction of the justice of the peace is
usually divided between two sets of courts: first, the municipal or
city courts, with a minor civil jurisdiction; and second, the police
or magistrates' courts with jurisdiction over petty criminal offenses.
The police or magistrates' courts have the power to make preliminary
investigations in case of felonies or serious misdemeanors.
607. THE COUNTY COURTS.--Above the justices of the peace there are, in
most states, a number of county courts, exercising limited
jurisdiction. These courts, sometimes called courts of common pleas or
district courts, have jurisdiction over civil cases involving
considerable sums, as well as jurisdiction over most criminal
offenses. In addition these courts usually consider appeals from the
judgments 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, though
in some states this tribunal takes the place of the county courts. The
superior court has jurisdiction over civil cases involving unlimited
sums, as well as unlimited original jurisdiction over criminal
matters. It may also try all cases over which the lower courts have no
jurisdiction.
609. THE SUPREME COURT.--At the head of the state judicial system
there is a court of last resort, known in various states by different
names. It may be called the court of appeals, the court of errors and
appeals, or simply the supreme court. Practically all of the cases
coming 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 there
are sometimes special tribunals for special purposes. Examples of such
courts are the probate or surrogates' courts for the settlement of the
estates of deceased persons; children's courts for the treatment of
cases involving children; courts of domestic relations; and courts of
claims for hearing claims against the state.
611. STATE JUDGES.--In almost all of the states judges are chosen by
popular vote, though in half a dozen states the choice of these
officials still lies with the legislature or with the Governor, or
with both acting jointly. Judges of the higher state courts are
generally chosen for a long period of time, even for life, while the
judges of the lower courts are chosen for relatively short periods.
Salaries vary from practically nothing but fee money for some justices
of the peace to an average of $7000 a year for justices of the supreme
court. The qualifications imposed upon judges include a minimum age of
25 to 35 years, and citizenship for a varying period of years. Another
common requirement is residence within the state, or even residence
within the judicial district. For judges of the higher courts it is
the custom to demand membership in the legal profession. Judges may be
removed by impeachment, and, in a few states, by use of the Recall.
612. OTHER COURT OFFICIALS.--The district or prosecuting attorney is
an important official. Generally he is chosen by the voters of the
county, though in some instances he is elected from larger areas. The
district attorney represents the state in all criminal cases, and
conducts the prosecution. This officer conducts a preliminary
investigation into crimes and determines whether or not a prosecution
should be instituted. If the decision is in the affirmative, he
presents the case to the grand jury. If the grand jury returns an
indictment, that is, if it demands that the accused be held for trial,
the prosecuting attorney conducts the prosecution at the ensuing
trial.
The clerk, or recording officer, is generally appointed by the court,
though he may be elected by popular vote. The constable or sheriff is
elected by popular vote. The clerk and the constable are charged with
the execution of all orders, judgments, and decrees of the court.
C. POWERS AND PROCEDURE
613. RELATION OF STATE TO FEDERAL COURTS.--The framework of American
government includes a dual system of courts, the Federal courts and
the state courts. The jurisdiction of the Federal courts is
specifically defined by the Federal Constitution, while the state
courts have a jurisdiction which is limited only by the prohibitions
of the state and Federal Constitutions. The two systems of courts are
independent in the exercise of their respective powers, and have
separate jurisdictions. In some cases, however, the state courts
have a concurrent jurisdiction with the Federal courts, and a litigant
has a choice of tribunals before which to bring suit. In most suits
the decision of the state supreme court is final, but cases involving
Federal law may be appealed for final decision to the Supreme Court of
the United States.
614. POWER TO DECLARE STATE STATUTES UNCONSTITUTIONAL.--Just as the
Federal courts are the final interpreters of all domestic law, so the
state courts have the power to pass upon the constitutionality of
statutes enacted either by the state legislature or by local law-
making bodies. The state constitution is the fundamental law of the
state, and it is the duty of the state courts to see that all state
and local legislative acts conform to this fundamental law.
615. POWER OVER EXECUTIVE OFFICIALS.--Through their power to pass upon
the legality of executive acts, the state courts exercise some degree
of control over executive officials. If a state governor were
illegally to remove an official from office, for example, the courts
could reinstate the latter.
The state courts also have the power to issue writs of mandamus and
injunction. The former may be used, under certain circumstances, to
compel an executive officer to perform his duty; the latter writ may
be used to prevent either state officials or private individuals from
committing illegal acts.
616. CIVIL JURISDICTION.--The jurisdiction of the state courts is
either civil or criminal.
The purpose of civil law is to protect the rights of the individual
and to redress his wrongs. The individual rights which are the concern
of civil law fall under three heads: First, the right of personal
security, including the right of protection against violence; second,
the right of personal liberty, including the rights set forth in the
bill of rights of the state constitution; third, the rights of
property, including the right to acquire and hold property, and the
right to demand fulfilment of contracts made under state law.
617. CIVIL PROCEDURE.--If an individual believes that his rights have
been violated, he, as plaintiff, is entitled to file a complaint with
the proper court. The sheriff or constable then summons the defendant
to appear in court, and the clerk of the court issues a summons or
subpoena to all witnesses which either party to the suit desires to
have testify. Generally either party may demand a trial by jury. Both
plaintiff and defendant are ordinarily represented by counsel which
present the different sides of the case to the judge and jury. The
judge decides what evidence may be properly presented to the jury.
After the closing argument of the plaintiff's counsel, the judge
instructs the jury on the legal points involved in the case. The jury
then retire and attempt to reach an unanimous decision. If able so to
agree, they return a verdict for either plaintiff or defendant, and
after the verdict has been accepted by the court, judgment is
rendered. If the jurors have been unable to come to an unanimous
decision, the case is ordinarily tried with another jury, though in a
few states an unanimous verdict in civil cases is not required.
If the decision of the court is accepted as final, the judgment is
enforced. On the other hand, the dissatisfied party may appeal the
case to the next higher court on the ground that the verdict was
contrary to the weight of evidence, or because of errors of law
committed by the judge. Under certain circumstances the judge who
tries the case may be induced to grant a new trial.
618. CRIMINAL JURISDICTION.--The purpose of criminal law is to punish
those who have committed public wrongs, _i.e._ wrongs against the
state 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, and
disturbance of the peace. Usually felonies are punished either by
death, or by a long prison sentence. Misdemeanors are ordinarily
punished by fines or by imprisonment for a short term.
619. CRIMINAL PROCEDURE.--A criminal proceeding usually begins with
the arrest of the accused person. Generally, though not always, arrest
is in pursuance of a warrant. As soon after arrest as possible, the
accused is brought before a magistrate for a preliminary examination.
If the examining magistrate finds that there is probable cause for
holding him for trial, the accused is committed to jail to await
trial. Unless the charge is murder, however, the defendant may be
released on bail.
If the charge is a serious one, indictment by the grand jury is the
next step. If this jury decides that the evidence is insufficient, the
charge is dismissed and the prisoner released. The grand jury meets in
secret, and hears only the charges against the accused. These are
generally presented by the prosecuting attorney. After the defendant
is indicted, the prisoner is brought into court and allowed to plead.
If he pleads guilty, the judge may forthwith impose sentence and there
is no trial. If the plea is "not guilty," a trial is arranged, a jury
of twelve men impanelled, and the trial begins.
The case is opened by the prosecuting attorney, since it is the duty
of the state to assume the defendant innocent until he is proved
guilty. The prosecuting attorney presents his witnesses, each of which
the defendant's attorney may cross-examine, and in turn allows the
defendant's attorney to present the defense. The prisoner is not
questioned at any stage in the trial, unless he is willing to take the
stand as a witness in his own behalf.
After the prosecuting attorney and the defendant's counsel have
completed their case, the judge sums up the evidence brought out by
each side, and instructs the jury as to the law involved. The jury
then retire and attempt to reach a verdict. Generally such a verdict
must be unanimous, and if this cannot be secured, the jury is
dismissed and the case is held for re-trial. If the verdict is "not
guilty," the prisoner is discharged; if he is found guilty, sentence
is imposed by the court, either immediately or at some future
date. [Footnote: For a discussion of the legal aspects of the problem
of 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_, chapter
xi.
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 of
English 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 other
departments of state government? (Reed, page 160.)
5. To what extent do the Federal courts interfere with the decisions
of 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. How
are judges chosen in these states? (Beard, page 550.)
8. Compare the salaries of American judges with the salaries of
European 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 most
successful? (Reed, page 168.)
TOPICS FOR INVESTIGATION AND REPORT
I
1. Provisions in your state constitution with respect to the state
judiciary.
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 friendly
attorney.)
6. Methods of removing judges in your state.
II
7. The evolution of state justice. (Gettell, _Readings in Political
Science_, page 384.)
8. Function of the state court. (Gettell, _Readings in Political
Science_, 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 Municipal
Government in the United States_, chapter xv.)
11. The system of appeals in state courts. (Reinsch, _Readings on
American State Government_, pages 150-158.)
12. Politics and the state courts. (Reinsch, _Readings on American
State Government_, pages 158-168.)
13. Defects in the enforcement of law. (Reinsch, _Readings on American
State Government_, pages 173-180.)
14. Relation of judicial inefficiency to crime. (Reinsch, _Readings on
American State Government_, pages 181-198.)
15. Legal claims against the state. (Reinch, _Readings on American
State Government_, pages 168-172.)
16. Necessity of judicial independence. (Gettell, _Readings in
Political 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, _The
American Commonwealth_, vol. i, chapter xlii.)
FOR CLASSROOM DISCUSSION
19. Should a jury sitting in a criminal trial be required to render an
unanimous verdict or simply a majority decision?
20. Should state judges be chosen directly by the people, or selected
by 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 extended
account of American municipal development, see Fairlie's _Municipal
Administration_. An excellent summary of Fairlie is found in
Guitteau's _Government and Politics in the United States_, Houghton
Mifflin Co., Boston, 1920.]
620. RAPID GROWTH OF AMERICAN CITIES.--A striking feature of American
life is the rapidity with which our cities have grown. At the time of
Washington's first inauguration, the United States were so
predominantly rural that only about one thirtieth of our population
was found in the cities. With the progress of the Industrial
Revolution came an unprecedented development of transportation and the
factory system. More and more people made their homes in the cities,
until in 1890 approximately a third of the people of the United States
were living in cities. According to the census of 1920 more than half
of our population is concentrated in towns and cities.
621. THE AMERICAN CITY BEFORE THE REVOLUTION.--New York, now the
largest American city, is also the oldest, having received its charter
in 1686. Between that date and the outbreak of the Revolution,
nineteen other municipalities received charters. The colonial cities
modelled their organization after the English borough. Practically all
authority was vested in a council, consisting of a mayor, recorder,
aldermen, and councilmen, acting as a single body. The mayor was
either appointed by the Governor, or elected by the council. The chief
duty of the mayor was to preside over the council and execute its
ordinances.
622. THE AMERICAN CITY, 1775-1825.--Several important changes in the
character of the American city took place in the half century which
followed the Declaration of Independence.
The power to grant charters to cities was transferred from the
Governor to the state legislature. This was the natural outcome of an
increasing suspicion of the executive authority, and a corresponding
increase of faith in the state legislature. Before the end of this
period the city came definitely under the control of the state
legislature. In the absence of constitutional restrictions, the
legislature has continued to exercise an almost dictatorial control
over the cities within its borders.
Also typical of this period was the subordination of city affairs to
state and national politics.
623. THE AMERICAN CITY, 1825-1850.--During this period a number of new
cities sprang into prominence. Immigration was increasing, and the
industrialization of the country was crowding the population into
larger 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 property
qualifications prescribed by some of the early city charters, and
practically attained universal manhood suffrage. The demand for
popular control likewise led to the present practice of choosing the
mayor by popular vote, the older methods of State appointment or
council election being discarded.
624. THE AMERICAN CITY, 1850-1875.--Many pressing municipal problems
appeared in this period. The functions of the American city became
more numerous and more complex. Police and fire systems were
installed; waterworks, sewer systems, and city parks were provided;
education and charitable relief were developed.
Under the stress of administering these additional functions, cities
applied more and more frequently to the state legislature for special
legislation granting them additional powers. State legislatures tended
to pass such special acts freely, with the result that corrupt and
pernicious legislation became common in many states. Special interests
engaged in lobbying, bribery, and log-rolling to secure special favors
from legislatures. Public service corporations often secured valuable
franchises on terms that did not adequately protect the public
interest.
625. MUNICIPAL REFORM.--The period since 1875 and especially since
1900 has been marked by a strong tendency to reform municipal
government.
The abuse of power by the city council in many instances forfeited the
respect with which the public had formerly regarded that body. The
power to appoint various city officials was transferred from the
council to the voters, and many of the functions formerly exercised by
the council were entrusted to newly created municipal boards.
In about half the states constitutional provisions now forbid the
legislature to pass special acts concerning municipalities. In other
states the constitution enumerates a large number of subjects with
regard to which the legislature cannot enact special legislation. In
some states the cities of the state are classified into two or more
groups, according to population; the legislature is compelled to
designate the group or groups to which statutes are to apply. In about
a dozen states certain types of cities are allowed to frame and amend
their own charters, provided that such acts are not inconsistent with
the constitution and statutes of the state.
Municipal civil service reform is of increasing importance, more than
200 American cities having sanctioned it in some form. As applied to
municipal affairs the merit system includes a municipal commission,
appointed by the mayor; a system of competitive examinations designed
to test character and capacity; a plan for requiring the appointing
officer in each department of city government to select his
subordinates from an eligible list; a method of removing officials;
and sometimes a system of pensioning employees who have grown old in
the service.
The movement for popular control has been closely associated with
municipal development. The tendency to shorten the ballot, the holding
of municipal elections at a different time than state and national
elections, and the concentration of administrative officers under a
responsible appointing head, are steps in this direction. In many
states the Direct Primary has been intimately associated with
municipal development. The Initiative, Referendum, and Recall have
been 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 city
government in the United States are the mayor-council plan, the
commission plan, and the city manager plan. [Footnote: For a
description of the commission and city manager plans of city
government, see Chapter XXXVI.] The commission plan is a new form of
city government which has been designed to overcome the defects of the
old mayor-council plan, while the city manager plan is a modification
of the commission plan. Of recent years both the commission plan and
the city manager plan have spread rapidly, but it is still true that
few American cities of any appreciable size have adopted either of
these two plans. The old mayor-council plan prevails in most American
cities, and for this reason the remainder of this chapter will be
devoted to a description of this form of government.
627. THE CITY COUNCIL: ORGANIZATION.--Usually the city council is a
single-chambered body, though some of the larger cities have from time
to time experimented with a double-chambered council. In some cities
councilmen are chosen on a general ticket, but in most cases the
council consists of one member from each ward or district into which
the city is divided. Councilmen must be voters in the city in which
they serve, and by custom they are generally required to be residents
of the ward from which they are chosen. The terms of councilmen vary
from one to four years, two years being the average term. In the
smaller cities councilmen are usually unpaid, but in the larger
municipalities they receive a stated salary.
628. THE CITY COUNCIL: POWERS.--The typical American city is
subservient to the state legislature, the powers of city government
being enumerated in a charter received from the legislature. These
enumerated powers have been rather narrowly interpreted by the courts.
The council enjoys a measure of police power, which it may invoke to
protect the health and to further the well-being of the city's
inhabitants. The exercise of this police power, however, must not
conflict with state law.
The council has the power to levy taxes to defray expenses incurred in
performing municipal functions. State constitutions and legislatures
limit this power rather narrowly, however. Subject to a similar
limitation is the council's power to raise money through the issue of
bonds.
City councils may act as the agents of the state government in matters
affecting education and charitable relief.
629. THE CITY COUNCIL: PROCEDURE.--The city council meets
periodically, generally weekly or bi-weekly. It determines its own
rules of procedure and keeps a journal. The committee system is used
for the dispatch of business. Ordinances may be proposed by any member
of the council. After being introduced, ordinances are read by title
and are referred to the proper committee. A second and third reading
at subsequent meetings are required. If the ordinance is approved by a
majority of the council, it is signed by the presiding officer, and
sent to the mayor. In many cities the mayor may veto any ordinance
passed by the council. In case of a veto the measure becomes law only
if passed by a two thirds--in some cities three fourths or four
fifths--vote of the council. In those cities where the mayor has no
veto power, the ordinance goes into effect immediately upon being
passed by the council.
630. THE MAYOR.--In all cities where the mayor-council plan of
government prevails, the chief executive officer is the mayor or chief
magistrate. This officer is usually elected by popular vote, for a
term 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 is
paid a salary which ranges from a few hundred dollars in the smaller
cities to several thousands of dollars in a number of the larger
municipalities.
631. THE MAYOR AND THE COUNCIL.--It is the duty of the mayor to
communicate at least once a year to the city council a general
statement of the administration and financial condition of the
city. The mayor may also recommend to the city council, in his annual
message or otherwise, the passage of ordinances which he considers
needful. In smaller cities, and in a few of the larger municipalities,
the mayor presides over the council and has a casting vote in case of
a tie, but in most of the larger cities he is not a member of the
council. In most cities he has the veto power. In many of the more
recent city charters, the mayor is given the power to veto separate
items in an appropriation bill, while approving the remainder of the
measure, just as some Governors may veto separate items in
appropriations bills enacted by the state legislature.
632. ADMINISTRATIVE DUTIES OF THE MAYOR.--The mayor stands at the head
of the city administration, but the extent of his control varies from
city to city. In the last half century the decline in popular favor of
the city council has been accompanied by a growing tendency to enlarge
the administrative powers of the mayor. In many of the smaller cities
the mayor is still little more than a presiding officer of the
council. In such cities subordinate executive officials are usually
chosen by popular vote or are appointed by the council. In other
cities 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 both
appoint and remove the heads of the executive departments, without
interference on the part of the council.
633. OTHER ADMINISTRATIVE OFFICIALS.--Such highly complex and
important matters as health, education, parks, charities, police, fire
protection, and public works are the concern of the numerous
administrative officials of the city. Administrative work is carried
on by two methods, first, the board system, in which such concerns as
schools, public health, and police are managed by boards composed of
members of the city council; and second, single commissioners, who are
more or less under the control of the mayor. The board system has
proved less efficient than the single commissioner plan, and
accordingly there is a tendency to abandon the former for the latter
plan.
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 between
1775 and 1825?
4. What distinguishes municipal development between 1825 and 1850?
5. What problems became prominent in municipal development between
1850 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_, chapter
iv.
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, page
39.)
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, page
46.)
8. Describe briefly the organization of the government of New York.
(Reed, pages 197-198.)
9. Summarize the functions of the American municipality. (Munro, pages
602-615.)
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_, chapter
iv.)
8. Historical development of the American city. (Munro, _The
Government of the United States_, chapter xl; Kimball, _State and
Municipal Government in the United States_, chapter xx.)
9. Political consequences of city growth. (Gettell, _Readings in
Political Science_, page 433.)
10. Relation of city life to democracy. (Gettell, _Readings in
Political Science_, page 436.)
11. Evolution of municipal organization. (Munro, _The Government of
American Cities_, chapter i.)
12. Relation of the municipality to the state. (Munro, _The Government
of American Cities_, chapter ii.)
13. The voters of the city. (Munro, _The Government of American
Cities_, chapter iii.)
14. The mayor. (Munro, _The Government of American Cities_, chapter
ix; 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 of
American Cities_, chapter x; Fairlie, _Municipal Administration_,
chapter xviii.)
17. The needs of city government. (Gettell, _Readings in Political
Science_, pages 441-442.)
18. The municipal government in action. (Bryce, _The American
Commonwealth_, vol. i, chapter li.)
19. Municipal functions. (Munro, _The Government of the United
States_, chapter xlii; James, _Local Government in the United States_,
chapter vii.)
20. Municipal finances. (Beard, _American City Government_, chapter
v.)
21. The franchise problem. (Beard, _American City Government_, chapter
vii.)
22. Municipal ownership as a political problem. (Beard, _American City
Government_, chapter viii.)
23. The commission plan of municipal government. (Munro, _The
Government of the United States_, chapter xliii; see also any other
standard text on American government.)
24. The city manager plan of municipal government. (Munro, _The
Government of the United States_, chapter xliii; see also any other
standard 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 by
the 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 your
municipality.
CHAPTER L
RURAL LOCAL GOVERNMENT
634. TYPES OF RURAL LOCAL GOVERNMENT.--Rural local governments in the
United States vary widely as between different sections of the
country, but in general they are divisible into three types. These
are:
(a) the town type, so common in New England;
(b) the county type, found chiefly in the South, the Southwest, and
the 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 New
England is the town. [Footnote: The county exists in New England as an
aggregation of towns. The county has acquired other functions, but it
is still primarily a judicial district.] In general the New England
town is an irregularly shaped area, varying in size from twenty to
forty-five square miles. The area comprising the typical town is
primarily rural, and generally contains one or more villages. Although
the town is primarily a rural unit, the villages within its bounds may
be so populous as to be classed as cities. Yet these populous
communities may, as in the case of Brookline, Massachusetts, retain
the town government. Other New England cities, such as New Haven and
Hartford, Connecticut, have continued the town organization separate
from the city government.
636. ORIGIN OF THE TOWN.--Some authorities believe that the town type
of rural local government can be traced back through English history
to the early Teutonic tribes. Whether or not this is true, it is
certain that the principle is an ancient one, and that when New
England was first settled, the colonists grouped together in small
compact communities, or towns, instead of scattering over larger
areas.
637. WHY TOWN GOVERNMENT DEVELOPED IN NEW ENGLAND.--Several factors
are responsible for the tendency of the settlers of early New England
to draw together in towns. From the economic point of view, the barren
nature of the soil rendered extensive farms impracticable, while, on
the other hand, the opportunities for fishing and commerce encouraged
small, compact settlements along the coast. The hostility of many of
the New England Indians also discouraged sparse settlements and
obliged the people to settle in close formation. Lastly, many of the
New England colonists came to the New World as groups or communities
which in their European homes had pivoted about a common church; in
New England these people naturally preferred to live very near one
another.
638. TOWN GOVERNMENT.--The government of the New England town is
vested in a town meeting, which consists of an annual session of the
voters of the town. At this meeting the voters enact laws governing
such local matters as town finance, schools, police, and highways. A
second important function of the town meeting is to choose the town
officers, including the selectmen, [Footnote: In Rhode Island the
selectmen 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 the
term 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 the
funds of the town and sometimes audits accounts, while the constable
keeps the peace of the town, serves writs, and collects local taxes.
In addition there are a number of minor officials, such as tax
assessors, 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 of
county government became as firmly intrenched in the Southern colonies
as did the concept of the town in early New England. Four factors
operated to discourage town government, and to encourage county
government, in the South. First, the Southern colonists did not come
in small family groups, as did the New Englanders, but rather as
individuals and from different classes of society. Second, the Indians
of the South were either weak or peaceful, so that fear of Indian
attack did not oblige the colonists to congregate in small, compact
communities. Third, the climate and soil of the South encouraged a
plantation system which resulted in a sparse rather than in a compact
population. Fourth, the aristocratic type of society developing from
the plantation and slave system prevented the rise of the democratic
town meeting.
640. GOVERNMENT OF THE SOUTHERN COUNTY.--Though county government is
also found in the Southwest and Far West, it is seen in its purest
form in the South. Here the county was originally a judicial district,
or sometimes also a financial district to facilitate the collection of
taxes. The functions of the county have gradually increased until such
local affairs as schools, jails, poorhouses, and the maintenance of
roads and bridges are concerns of the Southern county. The chief
administrative authority in the county is either the county court, or
a small board of commissioners. In either case the administrative
authority is chosen by popular vote. In addition there are a number of
minor officers such as the treasurer, tax assessor, and recorder, all
of them chosen by popular vote for terms varying from one to four
years.
641. GOVERNMENT OF THE FAR WESTERN COUNTY.--In the Far West, likewise,
the most important unit of rural local government is the county. The
county is governed by a board, usually consisting of three
commissioners. In general the officers of the Far Western county
resemble those in the central states. (See Section 644.)
C. THE MIXED TYPE [Footnote: Sometimes called the township-county
system.]
642. ORIGIN OF THE MIXED TYPE.--The mixed type of rural local
government is a hybrid, the result of the incomplete fusion of the
town type with the county type. The northern parts of the Central
states were settled largely by immigrants from New England, while the
southern portions of the Middle West were settled by pioneers from
Pennsylvania and the states south of the Ohio River. The New England
immigrants were used to town government, and endeavored to perpetuate
it in their new home; the settlers from the South preferred the county
form of government, and sought its adoption in their new homes. The
result was a compromise, some functions of rural local government
being assigned to the county and some to the township.
643. THE TWO SUB-TYPES.--In the fusion of the town and county types of
government the county system tended to predominate over the town or
township form of government when settlers from the South were in the
majority. In the northern section of the country, on the other hand,
the compromise form tended to include a majority of the features of
the town type. The result was the formulation of two sub-types.
The first of these may be called the Pennsylvania sub-type, so named
because it originated in Pennsylvania, and then spread, with
modifications, to Ohio, Indiana, Kansas, Missouri, and other states.
In these states the town or township authority is subordinated to the
county government. There is no town meeting.
The New York sub-type exists in typical form in New York, but is also
found in New Jersey, Michigan, Illinois, Wisconsin, Minnesota, the
Dakotas, 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 it
exercises less authority. All the legal voters of the township are
qualified to take part in this meeting, which is held annually and on
special occasions. At this meeting are chosen township officers for
the following year. The most important of these are the supervisor,
clerk, treasurer, assessor, and a varying number of constables and
justices of the peace. In addition to electing these and other
officers, the town meeting enacts legislation with regard to such
local matters as bridges, roads, and schools.
In some of the Central states general executive authority over
township affairs is vested in a township board, while in other states
administrative authority is divided between a township board of from
three to eleven members, and a supervisor or trustee. Besides these
officials, there are a number of minor officers, including a clerk, a
treasurer, an assessor, overseers of the poor, constables, and
justices of the peace.
The county board continues to exist under the New York plan, but it is
far less important than under the Pennsylvania sub-type. The functions
of the county board are similar in these two sub-types.
645. THE PENNSYLVANIA SUB-TYPE.--In those states in which the
Pennsylvania sub-type of rural local government prevails, general
control of government is vested in a county board. This board is
composed of three commissioners, who are elected by the voters of the
county. In all of the Central states the county board possesses
numerous powers, but the powers of the board are greater under the
Pennsylvania than under the New York sub-type. Under the former plan
the county board exercised four groups of powers: First, the levying
of taxes and the appropriation of local funds; second, the maintenance
of roads; third, poor-relief; and fourth, the supervision of local
elections.
Besides the members of the county board there are a number of other
county officials. The chief executive officer of the county court is
the sheriff. The prosecuting attorney is an elective official, whose
duty it is to conduct criminal prosecutions, and to act as the legal
agent of the county. The treasurer has charge of county funds, and
sometimes supervises the collection of taxes. He is elected by the
people, generally for a two-year term. The clerk or auditor is an
important county officer, as is the surveyor, the county
superintendent of schools, and the recorder or register of deeds.
646. HOME RULE FOR COUNTIES.--Generally, county authorities are
narrowly limited by the state constitution and state statutes. This
has always resulted in numerous appeals to the legislature for special
legislation, and has lately given rise to a demand for home rule for
counties. In the effort to reduce the pressure for special laws in the
legislature, the Michigan constitution of 1908 provided for a measure
of home rule for counties. The legislature is authorized to confer
legislative powers on the county boards, which may pass laws and
ordinances relative to purely local affairs, provided such enactments
do not conflict with state law, and provided, further, that such
enactments do not interfere with the local affairs of any township,
incorporated city, or village within the limits of the county. Such
laws may be vetoed by the Governor, but may be passed over his veto by
a two-thirds vote of the county board. Another step toward home rule
was taken when in 1911 California by constitutional amendment
empowered counties to frame their own charters, and, on securing
popular approval, to put the same into effect. However, the charter
thus framed and approved must first be sanctioned by the state
legislature.
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 local
government?
9. Compare briefly these two sub-types.
10. Discuss the nature of the movement to permit home rule to
counties.
REQUIRED READINGS
1. Beard, _American Government and Politics_, chapter xxix.
2. Guitteau, _Government and Politics in the United States_, chapter
ii.
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 in
the 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 and
western 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 placed
under the supervision of the state government? (Beard, pages 654-655.)
10. What are the merits and defects of autonomy for rural local
governments? (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 some
adjacent community.
3. The work of the tax assessor in rural local government.
4. Investigate the powers and duties of any other county, town, or
township officer.
II
5. Origin and development of rural local government in the United
States. (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, Towns
and Villages_, pages 164-185.)
8. General nature of county government. (Munro, _The Government of the
United States_, chapter xxxviii.)
9. The organization of county government. (James, _Local Government in
the United States_, chapter iii; Maxey, _County Administration_.)
10. Functions of county government. (James, _Local Government in the
United States_, chapter iv; Maxey, _County Administration_.)
11. Financial administration in counties. (Maxey, _County
Administration_.)
12. The administration of highways in counties. (Maxey, _County
Administration_.)
13. Charitable and correctional institutions in the county. (Maxey,
_County Administration_.)
14. Politics in rural local government. (Beard, _American Government
and 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 in
the United States_, chapter viii.)
18. Rural local government in England. (Reed, _Form and Functions of
American Government_, chapter xvii.)
19. Rural local government in France. (James, _Local Government in the
United States_, chapter i.)
FOR CLASSROOM DISCUSSION
20. The relative merits of the town, county, and mixed type of rural
local government.
21. The problem of efficiency in rural local government in your state.
22. The problem of responsibility in rural local government in your
state.
23. Should rural local governments in your state be allowed a greater
measure of home rule?
BIBLIOGRAPHY
The following list contains all of the references that are mentioned
in the text, either as required reading, or as the basis for suggested
topic work. Special mention may be made here of Williamson's _Readings
in 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, the
references in this list have been grouped under the folio wing heads:
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An asterisk has been placed before references that should prove of
value to those who desire to build up a small working library on
problems in American democracy. Works of special importance are
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* Fiske, John. _The Critical Period of American History_. Houghton
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Hart, Albert Bushnell. _Social and Economic Forces in American
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Huntington, Ellsworth. _Civilization and Climate_. Yale University
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** _International Encyclopedia_. Second edition. Dodd Mead & Co.,
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** _Lessons in Community and National Life_, Department of the
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Office, Washington, D. C. 1918.
McLaughlin, Andrew C. _Steps in the Development of American
Democracy_. The Abingdon Press, New York. 1920.
------. _The Confederation and the Constitution_. Harper and Bros, New
York. 1905.
Osgood, Herbert L. _The American Colonies in the Seventeenth Century_,
3 vols. Macmillan, New York. 1904.
Semple, Ellen C. _American History and its Geographic Conditions_.
Houghton Mifflin Co., Boston. 1903.
Speare, Morris E., and W. B. Norris. _World War Issues and Ideals_.
Ginn and Co., Boston. 1918.
** Turner, Frederick J. _The Frontier in American History_. Henry Holt
and Co., New York. 1920.
West, Willis M. _The War and the New Age_. Allyn and Bacon, Boston.
1919.
White, Albert Beebe. _The Making of the English Constitution_. Putnam,
New York. 1908.
ECONOMIC
Adams, Henry C. _Description of Industry_. Henry Holt & Co., New York.
1918.
Ashley, Percy. _Modern Tariff History_. Button and Co., New York.
1911.
*Bishop, Avard L., and A. G. Keller. _Industry and Trade_. Ginn and
Co., Boston. 1918.
Bloomfield, Daniel. _Selected Articles on Modern Industrial Movements_
H. W. Wilson Co., New York. 1919.
------. _Selected Articles on Problems of Labor_. H. W. Wilson Co.,
New York. 1920.
** Bogart, Ernest Ludlow. _The Economic History of the United States_.
Longmans, Green and Co., New York. 1912.
Bogart, Ernest Ludlow, and C. M. Thompson. _Readings in the Economic
History of the United States_. Longmans, Green and Co., New York.
1917.
Brasol, Boris L. _Socialism Versus Civilization_. Chas. Scribner's
Sons, New York. 1920.
Brooks, John Graham. _American Syndicalism: the I. W. W._ Macmillan,
New York. 1913.
Bruce, Philip A. _Economic History of Virginia in the Seventeenth
Century_. 2 Vols. Macmillan, New York. 1907.
Bullock, Charles J. _Selected Readings in Economics_. Ginn and Co.,
Boston. 1907.
------. _Selected Readings in Public Finance_. 2d edition. Ginn and
Co, Boston. 1920.
------. _The Elements of Economics_. Silver, Burdett and Co., Boston.
1919.
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Callender, Guy S. _Selections from the Economic History of the United
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* Carlton, Frank T. _History and Problems of Organized Labor_. D. C.
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------. _Organized Labor in American History_. Appleton, New York.
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** Carver, Thomas Nixon. _Elementary Economics_. Ginn and Co., Boston.
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------. _Essays in Social Justice_. Harvard University Press,
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------. _Principles of Rural Economics_. Ginn and Co., Boston. 1911.
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Railways in the United States and Great Britain_. Oxford University
Press. Carnegie Endowment for International Peace.
**Dryer, Charles R. _Elementary Economic Geography_. American Book
Co., New York. 1916.
Dunbar, Charles F. _The Theory and History of Banking_. 3d edition.
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Durand, Edward D. _The Trust Problem_. Harvard University Press,
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** Ely, Richard T. _Outlines of Economics_. Macmillan, New York. 1918.
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Fiske, Amos K. _The Modern Bank_. Appleton, New York. 1914. Ford,
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_Progress and Poverty_. Doubleday, Page and Co, New York. 1916.
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Chicago. 1908.
Hobson, John A. _The Evolution of Modern Capitalism_. New and revised
edition. London. 1912.
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York. 1915.
------. _Trade Unionism in the United States_. Appleton, New York.
1920.
* _I. W. W. Constitution_. Chicago. 1905.
* Johnson, Emory R. _American Railway Transportation_. Appleton, New
York. 1912.
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Tarbell, Ida M. _The Tariff in Our Times_. Macmillan, New York. 1911.
** Taussig, Frank W. _Principles of Economics_. 2 vols. Macmillan, New
York. 1919.
------. _The Tariff History of the United States_. Putnam, New York.
1916.
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Van Hise, Charles R. _Concentration and Control: a Solution of the
Trust Problem in the United States_. Macmillan, New York. 1912.
** ------. _The Conservation of Natural Resources in the United
States_. Macmillan, New York. 1918.
Weld, Louis D. H. _The Marketing of Farm Products_. Macmillan, New
York. 1916.
White, Horace. _Money and Banking_. Ginn and Co., Boston. 1911.
Wood, Thomas B. _The Story of a Loaf of Bread_. Putnam, New York.
1913.
Young, Arthur N. _The Single Tax Movement in the United States_.
Princeton University Press, Princeton. 1916.
SOCIAL
Abbott, Edith. _Women in Industry_. Appleton, New York. 1910. Abbott,
Grace. _The Immigrant and the Community_. Century Co., New York. 1917.
Addams, Jane. _The Spirit of Youth and the City Streets_. Macmillan,
New York. 1909.
Anderson, Wilbert Lee. _The Country Town_. Baker and Taylor Co., New
York. 1906.
Antin, Mary. _The Promised Land_. Houghton Mifflin Co., Boston. 1912.
------. _They Who Knock at Our Gates_. Houghton Mifflin Co., Boston
1914.
* _Atlanta University Publications_. Atlanta University Press,
Atlanta, Georgia.
Bailey, Liberty Hyde. _The Training of Farmers_. Century Co., New
York. 1909.
Baldwin, Simeon E. _The Relation of Education to Citizenship_. Yale
University Press, New Haven. 1912.
Bloomfield, Meyer. _The Vocational Guidance of Youth_. Houghton
Mifflin Co., Boston. 1911.
Bogardus, Emory S. _Essentials of Americanization_. University of
Southern California, Press, Los Angeles. 1919.
Booth, Maud Ballington. _After Prison--What?_ F. H. Revell Co., New
York 1903.
* Bryce, James. _The Hindrances to Good Citizenship_. Yale University
Press, 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 Doctor
and Social Worker_. Houghton Mifflin Co., Boston. 1919.
Carney, Mabel. _Country Life and the Country School_. Row, Peterson
and Co., Chicago. 1912.
** Carver, Thomas Nixon. _Sociology and Social Progress_. Ginn and
Co., Boston. 1905.
Cleveland, Frederick A., and Joseph Schafer. _Democracy in
Reconstruction._ Houghton Mifflin Company, Boston. 1919.
Colcord, Joanna C. _Broken Homes: a Study of Family Desertion and its
Social Treatment_. Russell Sage Foundation, New York. 1919.
* Commons, John R. _Races and Immigrants in America_. Macmillan, New
York. 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_. Houghton
Mifflin Co., Boston. 1909.
* ------. _Public Education in the United States_. Houghton Mifflin
Co., 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 Publication
Committee, New York. 1912.
Dewey, John. _Schools of To-morrow_. Dutton, New York. 1915.
Dugdale, Richard L. _The Jukes, a Study in Crime, Pauperism, Disease
and 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 National
Health, being a Report on National Vitality, its Wastes and
Conservation._ 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 and
Walton, New York. 1913.
Goddard, Henry H. _The Kallikak Family_. Macmillan, New York. 1912.
* Goodsell, Willystine. _The Family as a Social and Educational
Institution_. 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 the
Evolution of Democratic Government_. Chas. Scribner's Sons, New York.
1903.
Hall, Herbert J., and M. M. C. Buck. _Handicrafts for the
Handicapped_. 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_? Houghton
Mifflin Co., Boston. 1914.
* Henderson, Charles Richmond. _An Introduction to the Study of the
Dependent, 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_. 4th
edition. Funk and Wagnalls, New York. 1917.
* Keller, Helen. _The Story of My Life._ Doubleday, Page and Co., New
York. 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, Methods
and 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 and
Society._ Harper and Bros., New York. 1917.
Lichtenberger, James P. _Divorce, a Study in Social Causation._ New
York. 1909.
MacLean, Annie M. _Women Workers and Society_. McClurg, Chicago, 1916.
* McMurry, Frank M. _How to Study and Teaching How to Study_. Houghton
Mifflin Co., Boston. 1909.
** Mangold, George B. _Problems of Child Welfare_. Macmillan, New
York. 1914.
Ogden, Henry Neely. _Rural Hygiene_. Macmillan, New York. 1911.
Oliver, Thomas. _Diseases of Occupation, from the Legislative, Social
and 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_. Charities
Publication Committee, New York. 1910.
Queen, Stuart. _The Passing of the County Jail_. George Banta
Publishing 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, New
York. 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 Foundation
for the advancement of teaching, Bulletin No. 13, New York. 1919.
* Smith, Richard Mayo. _Emigration and Immigration_. Chas. Scribner's
Sons, New York. 1904.
* Steiner, Edward A. _From Alien to Citizen_. F. H. Revell Co., New
York. 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, New
York. 1914.
Tillinghast, Joseph A. _The Negro in Africa and America_. American
Economic 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., New
York. 1918.
** Vogt, Paul L. _Introduction to Rural Sociology_. Appleton, New
York. 1917.
** Warner, Amos G. _American Charities_. 3d edition. Crowell, New
York. 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_. New
York. 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 United
States_. Macmillan, New York. 1913.
------. _Readings in American Government and Politics_. Macmillan, New
York. 1912.
------. _The Supreme Court and the Constitution_. Macmillan, New York.
1912.
Beard, Charles A., and Birl Schultz. _Documents on the State-wide
Initiative, Referendum and Recall_. Macmillan, New York. 1912.
Borgeaud, Charles. _Adoption and Amendment of Constitutions in Europe
and America_. Macmillan, New York. 1895.
* Brewer, David J. _American Citizenship_. Chas. Scribner's Sons, New
York. 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 and
Co., New York. 1913.
* Cleveland, Frederick H., and A. E. Buck. _The Budget and Responsible
Government_. 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 and
A. B. Hart. 3 Vols. Appleton, New York. 1914.
Dealey, James Q. _Growth of American State Constitutions from 1776 to
the End of the Year 1914_. Ginn and Co., Boston. 1915 ** Dunn, Arthur
William. _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 of
America_. 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, New
York. 1909.
Ford, Henry Jones. _The Cost of Our National Government_. Columbia
University Press. New York. 1910.
** ------. _The Rise and Growth of American Politics_. Macmillan, New
York. 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, New
York. 1911.
** Guitteau, William Backus. _Government and Politics in the United
States_. 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 Democratic
Government_. 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 United
States_. Macmillan, New York. 1912.
Kaye, Percy Lewis. _Readings in Civil Government_. Century Co., New
York. 1910.
* Kimball, Everett. _State and Municipal Government in the United
States_ Ginn and Co., Boston. 1921.
* ------. _The National Government of the United States._ Ginn and
Co., Boston. 1919.
Leacock, Stephen A. _Elements of Political Science_. Houghton Mifflin
Co., Boston. 1913.
** Lowell, A. Lawrence. _Public Opinion and Popular Government_.
Longmans, Green & Co., New York. 1913.
McCall, Samuel Walker. _The Business of Congress_, Columbia University
Press, New York. 1911.
McKinley, Albert E. _The Suffrage Franchise in the Thirteen English
Colonies 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, New
York. 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 York
1919.
* ------. _The Initiative, Referendum and Recall_. Appleton, New York
1913.
Porter, Kirk. _A History of Suffrage in the United States_. University
of Chicago Press, Chicago. 1918.
** Ray, P. Orman. _An Introduction to Political Parties and Practical
Politics_ 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_. Harvard
University 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_. Columbia
University Press New York. 1916.
Taft, William Howard. _Popular Government_. Yale University Press, New
Haven. 1914.
* Woodburn, James Albert. _Political Parties and Party Problems in the
United States_. Putnam, New York. 1914.
Woodburn, James Albert, and T. F. Moran. _The Citizen and the
Republic_. 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 perfect
union, establish justice, insure domestic tranquillity, provide for
the common defence, promote the general welfare, and secure the
blessings of liberty to ourselves and our posterity, do ordain and
establish this CONSTITUTION for the United States of America,
ARTICLE I
SECTION I. All legislative powers herein granted shall be vested in a
Congress of the United States, which shall consist of a Senate and a
House of Representatives.
SECT. II. 1. The House of Representatives shall be composed of members
chosen every second year by the people of the several States, and the
electors in each State shall have the qualifications requisite for
electors of the most numerous branch of the State Legislature.
2. No person shall be a Representative who shall not have attained to
the age of twenty-five years, and been seven years a citizen of the
United States, and who shall not, when elected, be an inhabitant of
that State in which he shall be chosen.
3. Representatives and direct taxes shall be apportioned among the
several States which may be included within this Union, according to
their respective numbers, which shall be determined by adding to the
whole number of free persons, including those bound to service for a
term of years, and excluding Indians not taxed, three fifths of all
other persons. The actual enumeration shall be made within three years
after the first meeting of the Congress of the United States, and
within every subsequent term of ten years, in such manner as they
shall by law direct. The number of Representatives shall not exceed
one for every thirty thousand, but each State shall have at least one
representative; and until such enumeration shall be made, the State of
New Hampshire shall be entitled to choose three, Massachusetts eight,
Rhode Island and Providence Plantations one, Connecticut five, New
York six, New Jersey four, Pennsylvania eight, Delaware one, Maryland
six, Virginia ten, North Carolina five, South Carolina five, and
Georgia three.
4. When vacancies happen in the representation from any State, the
Executive authority thereof shall issue writs of election to fill such
vacancies.
5. The House of Representatives shall choose their Speaker and other
officers; and shall have the sole power of impeachment.
SECT. III. 1. The Senate of the United States shall be composed of two
Senators from each State, chosen by the legislature thereof, for six
years; and each Senator shall have one vote.
2. Immediately after they shall be assembled in consequence of the
first election, they shall be divided as equally as may be into three
classes. The seats of the Senators of the first class shall be vacated
at the expiration of the second year, of the second class at the
expiration of the fourth year, and of the third class at the
expiration of the sixth year, so that one third may be chosen every
second year; and if vacancies happen by resignation or otherwise,
during the recess of the legislature of any State, the Executive
thereof may make temporary appointments until the next meeting of the
legislature, which shall then fill such vacancies.
3. No person shall be a Senator who shall not have attained to the age
of thirty years, and been nine years a citizen of the United States,
and who shall not, when elected, be an inhabitant of that State for
which he shall be chosen.
4. The Vice-President of the United States shall be President of the
Senate, 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 shall
exercise the office of President of the United States.
6. The Senate shall have the sole power to try all impeachments. When
sitting for that purpose, they shall be on oath or affirmation. When
the President of the United States is tried, the Chief Justice shall
preside: and no person shall be convicted without the concurrence of
two thirds of the members present.
7. Judgment in cases of impeachment shall not extend further than to
removal from office, and disqualification to hold and enjoy any office
of honor, trust or profit under the United States: but the party
convicted 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 for
Senators and Representatives shall be prescribed in each State by the
legislature thereof; but the Congress may at any time by law make or
alter such regulations, except as to the places of choosing Senators.
2. The Congress shall assemble at least once in every year, and such
meeting shall be on the first Monday in December, unless they shall by
law appoint a different day.
SECT. V. 1. Each house shall be the judge of the elections, returns
and qualifications of its own members, and a majority of each shall
constitute a quorum to do business; but a smaller number may adjourn
from day to day, and may be authorized to compel the attendance of
absent members, in such manner, and under such penalties, as each
house may provide.
2. Each house may determine the rules of its proceedings, punish its
members for disorderly behavior, and with the concurrence of two
thirds, expel a member.
3. Each house shall keep a journal of its proceedings, and from time
to time publish the same, excepting such parts as may in their
judgment require secrecy; and the yeas and nays of the members of
either house on any question shall, at the desire of one fifth of
those present, be entered on the journal.
4. Neither house, during the session of Congress, shall, without the
consent of the other, adjourn for more than three days, nor to any
other place than that in which the two houses shall be sitting.
SECT. VI. 1. The Senators and Representatives shall receive a
compensation for their services, to be ascertained by law and paid out
of the treasury of the United States. They shall in all cases except
treason, felony and breach of the peace, be privileged from arrest
during their attendance at the session of their respective houses, and
in going to and returning from the same; and for any speech or debate
in either house, they shall not be questioned in any other place.
2. No Senator or Representative shall, during the time for which he
was elected, be appointed to any civil office under the, authority of
the United States, which shall have been created, or the emoluments
whereof shall have been increased, during such time; and no person
holding any office under the United States shall be a member of either
house during his continuance in office.
SECT. VII. 1. All bills for raising revenue shall originate in the
House of Representatives; but the Senate may propose or concur with
amendments as on other bills.
2. Every bill which shall have passed the House of Representatives and
the Senate, shall, before it become a law, be presented to the
President of the United States; if he approve he shall sign it, but if
not he shall return it with his objections to that house in which it
shall have originated, who shall enter the objections at large on
their journal, and proceed to reconsider it. If after such
reconsideration two thirds of that house shall agree to pass the bill,
it shall be sent, together with the objections, to the other house, by
which it shall likewise be reconsidered, and, if approved by two
thirds of that house, it shall become a law. But in all such cases the
votes of both houses shall be determined by yeas and nays, and the
names of the persons voting for and against the bill shall be entered
on the journal of each house respectively. If any bill shall not be
returned by the President within ten days (Sundays excepted) after it
shall have been presented to him, the same shall be a law, in like
manner as if he had signed it, unless the Congress by their
adjournment prevent its return, in which case it shall not be a law.
3. Every order, resolution, or vote to which the concurrence of the
Senate and House of Representatives may be necessary (except on a
question of adjournment) shall be presented to the President of the
United States; and before the same shall take effect, shall be
approved by him, or being disapproved by him, shall be repassed by two
thirds of the Senate and House of Representatives, according to the
rules 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 the
debts and provide for the common defence and general welfare of the
United States, but all duties, imposts and excises shall be uniform
throughout the United States;
2. To borrow money on the credit of the United States;
3. To regulate commerce with foreign nations, and among the several
States, and with the Indian tribes;
4. To establish an uniform rule of naturalization, and uniform laws on
the subject of bankruptcies throughout the United States;
5. To coin money, regulate the value thereof, and of foreign coin, and
fix the standard of weights and measures;
6. To provide for the punishment of counterfeiting the securities and
current 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 for
limited times to authors and inventors the exclusive right to their
respective writings and discoveries;
9. To constitute tribunals inferior to the Supreme Court;
10. To define and punish piracies and felonies committed on the high
seas and offences against the law of nations;
11. To declare war, grant letters of marque and reprisal, and make
rules concerning captures on land and water;
12. To raise and support armies, but no appropriation of money to that
use 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 and
naval forces;
15. To provide for calling forth the militia to execute the laws of
the 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 service
of the United States, reserving to the States respectively the
appointment of the officers, and the authority of training the militia
according to the discipline prescribed by Congress;
17. To exercise exclusive legislation in all cases whatsoever, over
such district (not exceeding ten miles square) as may, by cession of
particular States, and the acceptance of Congress, become the seat of
government of the United States, and to exercise like authority over
all 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 carrying
into execution the foregoing powers, and all other powers vested by
this Constitution in the government of the United States, or in any
department or office thereof.
SECT. IX. 1. The migration or importation of such persons as any of
the States now existing shall think proper to admit shall not be
prohibited by the Congress prior to the year 1808; but a tax or duty
may be imposed on such importation, not exceeding $10 for each person.
2. The privilege of the writ of _habeas corpus_ shall not be
suspended, unless when in cases of rebellion or invasion the public
safety 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 in
proportion to the census or enumeration herein before directed to be
taken.
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 or
revenue to the ports of one State over those of another: nor shall
vessels bound to, or from, one State, be obliged to enter, clear, or
pay duties in another.
7. No money shall be drawn from the treasury, but in consequence of
appropriations made by law; and a regular statement and account of the
receipts and expenditures of all public money shall be published from
time to time.
8. No title of nobility shall be granted by the United States: and no
person 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, or
foreign state.
SECT. X. 1. No State shall enter into any treaty, alliance, or
confederation; grant letters of marque and reprisal; coin money; emit
bills of credit; make anything but gold and silver coin a tender in
payment of debts; pass any bill of attainder, _ex post facto_ law, or
law impairing the obligation of contracts, or grant any title of
nobility.
2. No State shall, without the consent of the Congress, lay any
imposts or duties on imports or exports, except what may be absolutely
necessary for executing its inspection laws: and the net produce of
all duties and imposts, laid by any State on imports or exports, shall
be for the use of the treasury of the United States; and all such laws
shall be subject to the revision and control of the Congress.
3. No State shall, without the consent of Congress, lay any duty of
tonnage, keep troops, or ships of war in time of peace, enter into any
agreement or compact with another State, or with a foreign power, or
engage in war, unless actually invaded, or in such imminent danger as
will not admit of delay.
ARTICLE II
SECTION I. 1. The executive power shall be vested in a President of
the United States of America. He shall hold his office during the term
of four years, and together with the Vice-President, chosen for the
same term, be elected as follows:
2. Each State shall appoint, in such manner as the legislature thereof
may direct, a number of electors, equal to the whole number of
Senators and Representatives to which the State may be entitled in the
Congress; but no Senator or Representative, or person holding an
office of trust or profit under the United States, shall be appointed
an elector.
[The electors shall meet in their respective States, and vote by
ballot for two persons, of whom one at least shall not be an
inhabitant of the same State with themselves. And they shall make a
list of all the persons voted for, and of the number of votes for
each; which list they shall sign and certify, and transmit sealed to
the seat of government of the United States, directed to the President
of the Senate. The President of the Senate shall, in the presence of
the Senate and House of Representatives, open all the certificates,
and the votes shall then be counted. The person having the greatest
number of votes shall be the President, if such number be a majority
of the whole number of electors appointed; and if there be more than
one who have such majority, and have an equal number of votes, then
the House of Representatives shall immediately choose by ballot one of
them for President; and if no person has a majority, then from the
five highest on the list the said house shall in like manner choose
the President. But in choosing the President the votes shall be taken
by States, the representation from each State having one vote; a
quorum for this purpose shall consist of a member or members from two
thirds of the States, and a majority of all the States shall be
necessary to a choice. In every case, after the choice of the
President, the person having the greatest number of votes of the
electors shall be the Vice-President. But if there should remain two
or more who have equal votes, the Senate shall choose from them by
ballot the Vice-President.]
3. The Congress may determine the time of choosing the electors, and
the day on which they shall give their votes; which day shall be the
same throughout the United States.
4. No person except a natural born citizen, or a citizen of the United
States, at the time of the adoption of this Constitution, shall be
eligible to the office of President; neither shall any person be
eligible to that office who shall not have attained to the age of
thirty-five years, and been fourteen years a resident within the
United States.
5. In case of the removal of the President from office or of his
death, resignation, or inability to discharge the powers and duties of
the said office, the same shall devolve on the Vice-President, and the
Congress 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 officer
shall act accordingly, until the disability be removed, or a president
shall be elected.
6. The President shall, at stated times, receive for his services, a
compensation, which shall neither be increased nor diminished during
the period for which he shall have been elected, and he shall not
receive 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 the
following oath or affirmation:--"I do solemnly swear (or affirm) that
I will faithfully execute the office of President of the United
States, and will to the best of my ability, preserve, protect and
defend the Constitution of the United States."
SECT. II. 1. The President shall be commander in chief of the army and
navy of the United States, and of the militia of the several States,
when called into the actual service of the United States; he may
require the opinion, in writing, of the principal officer in each of
the executive departments, upon any subject relating to the duties of
their respective offices, and he shall have power to grant reprieves
and pardons for offences against the United States, except in cases of
impeachment.
2. He shall have power, by and with the advice and consent of the
Senate, to make treaties, provided two thirds of the Senators present
concur; and he shall nominate, and by and with the advice and consent
of the Senate, shall appoint ambassadors, other public ministers and
consuls, judges of the Supreme Court, and all other officers of the
United States, whose appointments are not herein otherwise provided
for, and which shall be established by law: but the Congress may by
law vest the appointment of such inferior officers, as they think
proper, in the President alone, in the courts of law, or in the heads
of departments.
3. The President shall have power to fill up all vacancies that may
happen during the recess of the Senate, by granting commissions which
shall expire at the end of their next session.
SECT. III. He shall from time to time give to the Congress information
of the state of the Union, and recommend to their consideration such
measures as he shall judge necessary and expedient; he may, on
extraordinary occasions, convene both houses, or either of them, and
in case of disagreement between them, with respect to the time of
adjournment, he may adjourn them to such time as he shall think
proper; he shall receive ambassadors and other public ministers; he
shall take care that the laws be faithfully executed, and shall
commission all the officers of the United States.
SECT. IV. The President, Vice-President and all civil officers of the
United States, shall be removed from office on impeachment for, and on
conviction of, treason, bribery, or other high crimes and
misdemeanors.
ARTICLE III
SECTION I. 1. The judicial power of the United States shall be vested
in one Supreme Court, and in such inferior courts as Congress may from
time to time ordain and establish. The judges, both of the Supreme and
inferior courts, shall hold their offices during good behavior, and
shall, 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 and
equity, arising under this Constitution, the laws of the United
States, and treaties made or which shall be made, under their
authority;--to all cases affecting ambassadors, other public ministers
and consuls;--to all cases of admiralty jurisdiction;--to
controversies to which the United States shall be a party;--to
controversies between two or more States;--between a State and
citizens of another State;--between citizens of different States;--
between citizens of the same State claiming lands under grants of
different States, and between a State, or the citizens thereof, and
foreign states, citizens or subjects.
2. In all cases affecting ambassadors, other public ministers and
consuls, and those in which a State shall be a party, the Supreme
Court shall have original jurisdiction. In all the other cases before
mentioned, the Supreme Court shall have appellate jurisdiction, both
as to law and fact, with such exceptions, and under such regulations
as the Congress shall make.
3. The trial of all crimes, except in cases of impeachment, shall be
by jury; and such trial shall be held in the State where the said
crimes shall have been committed; but when not committed within any
State, the trial shall be at such place or places as the Congress may
by law have directed.
SECT. III. 1. Treason against the United States shall consist only in
levying war against them, or in adhering to their enemies, giving them
aid and comfort. No person shall be convicted of treason unless on the
testimony of two witnesses to the same overt act, or on confession in
open court.
2. The Congress shall have power to declare the punishment of treason,
but no attainder of treason shall work corruption of blood, or
forfeiture except during the life of the person attainted.
ARTICLE IV
SECTION I. Full faith and credit shall be given in each State to the
public acts, records, and judicial proceedings of every other State.
And the Congress may by general laws prescribe the manner in which
such acts, records, and proceedings shall be proved, and the effect
thereof.
SECT. II. 1. The citizens of each State shall be entitled to all
privileges 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 on
demand of the executive authority of the State from which he fled, be
delivered up, to be removed to the State having jurisdiction of the
crime.
3. No person held to service or labor in one State, under the laws
thereof, escaping into another, shall, in consequence of any law or
regulation therein, be discharged from such service or labor, but
shall be delivered up on claim of the party to whom such service or
labor may be due.
SECT. III. I. New States may be admitted by the Congress into this
Union; but no new State shall be formed or erected within the
jurisdiction of any other State; nor any State be formed by the
junction of two or more States, or parts of States, without the
consent of the legislatures of the States concerned as well as of the
Congress.
2. The Congress shall have power to dispose of and make all needful
rules and regulations respecting the territory or other property
belonging to the United States; and nothing in this Constitution shall
be so construed as to prejudice any claims of the United States, or of
any particular State.
SECT. IV. The United States shall guarantee to every State in this
Union a republican form of government, and shall protect each of them
against invasion; and on application of the legislature, or of the
executive (when the legislature cannot be convened) against domestic
violence.
ARTICLE V
The Congress, whenever two thirds of both houses shall deem it
necessary, shall propose amendments to this Constitution, or, on the
application of the legislatures of two thirds of the several States,
shall call a convention for proposing amendments, which, in either
case shall be valid to all intents and purposes, as part of this
Constitution, when ratified by the legislatures of three fourths of
the several States, or by conventions in three fourths thereof, as the
one or the other mode of ratification may be proposed by the Congress;
provided that no amendments which may be made prior to the year one
thousand eight hundred and eight shall in any manner affect the first
and fourth clauses in the ninth section of the first article; and that
no State, without its consent, shall be deprived of its equal suffrage
in the Senate.
ARTICLE VI
1. All debts contracted and engagements entered into, before the
adoption of this Constitution, shall be as valid against the United
States under this Constitution, as under the Confederation.
2. This Constitution, and the laws of the United States which shall be
made in pursuance thereof; and all treaties made, or which shall be
made, under the authority of the United States, shall be the supreme
law of the land; and the judges in every State shall be bound thereby,
anything in the Constitution or laws of any State to the contrary
notwithstanding.
3. The Senators and Representatives before mentioned, and the members
of the several State legislatures, and all executive and judicial
officers, both of the United States and of the several States, shall
be bound by oath or affirmation, to support this Constitution; but no
religious test shall ever be required as a qualification to any office
or public trust under the United States.
ARTICLE VII
The ratification of the conventions of nine States, shall be
sufficient for the establishment of this Constitution between the
States so ratifying the same.
Done in Convention by the unanimous consent of the States present, the
seventeenth day of September in the year of our Lord one thousand
seven hundred and eighty-seven and of the Independence of the United
States of America the twelfth. In witness whereof we have hereunto
subscribed our names.
[Signed by] Gº WASHINGTON
Presidt and Deputy from Virginia
ARTICLES IN ADDITION TO AND AMENDMENT OF THE CONSTITUTION OF THE
UNITED STATES OF AMERICA, PROPOSED BY CONGRESS, AND RATIFIED BY THE
LEGISLATURES OF THE SEVERAL STATES, PURSUANT TO THE FIFTH ARTICLE OF
THE ORIGINAL CONSTITUTION [Footnote: The first ten Amendments were
adopted in 1791.]
ARTICLE I. Congress shall make no law respecting an establishment of
religion, or prohibiting the free exercise thereof; or abridging the
freedom of speech, or of the press; or the right of the people
peaceably to assemble, and to petition the government for a redress of
grievances.
ARTICLE II. A well-regulated militia, being necessary to the security
of a free State, the right of the people to keep and bear arms, shall
not be infringed.
ARTICLE III. No soldier shall, in time of peace be quartered in any
house without the consent of the owner, nor in time of war, but in a
manner 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 and
seizures, shall not be violated, and no warrants shall issue but upon
probable cause, supported by oath or affirmation, and particularly
describing the place to be searched, and the persons or things to be
seized.
ARTICLE V. No person shall be held to answer for a capital, or
otherwise infamous crime, unless on a presentment or indictment of a
grand jury except in cases arising in the land or naval forces, or in
the 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 put
in jeopardy of life or limb; nor shall be compelled in any criminal
case to be a witness against himself, nor be deprived of life,
liberty, or property, without due process of law; nor shall private
property be taken for public use without just compensation.
ARTICLE VI. In all criminal prosecutions the accused shall enjoy the
right to a speedy and public trial, by an impartial jury of the State
and district wherein the crime shall have been committed, which
district shall have been previously ascertained by law, and to be
informed of the nature and cause of the accusation; to be confronted
with the witnesses against him; to have compulsory process for
obtaining witnesses in his favour, and to have the assistance of
counsel for his defence.
ARTICLE VII. In suits at common law, where the value in controversy
shall exceed twenty dollars, the right of trial by jury shall be
preserved, and no fact tried by a jury shall be otherwise re-examined
in any court of the United States, than according to the rules of the
common law.
ARTICLE VIII. Excessive bail shall not be required, nor excessive
fines 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 the
people.
ARTICLE X. The powers not delegated to the United States by the
Constitution, nor prohibited by it to the States, are reserved to the
States respectively, or to the people.
ARTICLE XI. The judicial power of the United States shall not be
construed to extend to any suit in law or equity, commenced or
prosecuted against one of the United States by citizens of another
State, or by citizens or subjects of any foreign state. [Adopted in
1798.]
ARTICLE XII. The electors shall meet in their respective States, and
vote by ballot for President and Vice-President, one of whom, at
least, 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, and
they shall make distinct lists of all persons voted for as President,
and of all persons voted for as Vice-President, and of the number of
votes for each, which lists they shall sign and certify, and transmit
sealed to the seat of government of the United States, directed to the
President of the Senate;--the President of the Senate shall, in the
presence of the Senate and House of Representatives, open all the
certificates and the votes shall then be counted;--the person having
the greatest number of votes for President shall be the President, if
such number be a majority of the whole number of electors appointed;
and if no person have such majority, then from the persons having the
highest numbers not exceeding three on the list of those voted for as
President, the House of Representatives shall choose immediately, by
ballot, the President. But in choosing the President, the votes shall
be taken by States, the representation from each State having one
vote; a quorum for this purpose shall consist of a member or members
from two thirds of the States, and a majority of all the States shall
be necessary to a choice. And if the House of Representatives shall
not choose a President whenever the right of choice shall devolve upon
them, before the fourth day of March next following, then the Vice-
President shall act as President, as in the case of the death or other
constitutional disability of the President.--The person having the
greatest number of votes as Vice-President, shall be the Vice-
President, if such number be a majority of the whole number of
electors appointed, and if no person have a majority, then from the
two highest numbers on the list, the Senate shall choose the Vice-
President; a quorum for the purpose shall consist of two thirds of the
whole number of Senators, and a majority of the whole number shall be
necessary to a choice. But no person constitutionally ineligible to
the office of President shall be eligible to that of Vice-President of
the 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 been
duly convicted, shall exist within the United States, or any place
subject to their jurisdiction.
Section 2. Congress shall have power to enforce this article by
appropriate legislation. [Adopted in 1865.]
ARTICLE XIV. Section 1. All persons born or naturalized in the United
States, and subject to the jurisdiction thereof, are citizens of the
United States and of the State wherein they reside. No State shall
make or enforce any law which shall abridge the privileges or
immunities of citizens of the United States; nor shall any State
deprive any person of life, liberty, or property, without due process
of law; nor deny to any person within its jurisdiction the equal
protection of the laws.
Section 2. Representatives shall be apportioned among the several
States according to their respective numbers, counting the whole
number of persons in each State, excluding Indians not taxed. But when
the right to vote at any election for the choice of Electors for
President and Vice-President of the United States, Representatives in
Congress, the executive and judicial officers of a State, or the
members of the legislature thereof, is denied to any of the male
inhabitants of such State, being twenty-one years of age and citizens
of the United States, or in any way abridged, except for participation
in rebellion, or other crime, the basis of representation therein
shall be reduced in the proportion which the number of such male
citizens shall bear to the whole number of male citizens twenty-one
years 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, civil
or military, under the United States, or under any State, who, having
previously taken an oath, as a member of Congress, or as an officer of
the United States, or as a member of any State legislature, or as an
executive or judicial officer of any State, to support the
Constitution of the United States, shall have engaged in insurrection
or rebellion against the same, or given aid or comfort to the enemies
thereof. 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 pensions
and bounties for services in suppressing insurrection or rebellion,
shall not be questioned. But neither the United States nor any State
shall assume or pay any debt or obligation incurred in aid of
insurrection or rebellion against the United States, or any claim for
the 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 appropriate
legislation the provisions of this article. [Adopted in 1867.]
ARTICLE XV. Section 1. The right of citizens of the United States to
vote shall not be denied or abridged by the United States or any State
on account of race, color, or previous condition of servitude.
Section 2. The Congress shall have power to enforce this article by
appropriate legislation. [Adopted in 1870.]
ARTICLE XVI. The Congress shall have power to lay and collect taxes on
incomes, from whatever source derived, without apportionment among the
several States, and without regard to any census or enumeration.
[Adopted in 1913.]
ARTICLE XVII, Section 1. The Senate of the United States shall be
composed of two Senators from each State, elected by the people
thereof, for six years; and each Senator shall have one vote. The
electors in each State shall have the qualifications requisite for
electors of the most numerous branch of the State Legislatures.
Section 2. When vacancies happen in the representation of any State in
the Senate, the executive authority of such State shall issue writs of
election to fill such vacancies: Provided that the Legislature of any
State may empower the executive thereof to make temporary appointments
until the people fill the vacancies by election as the Legislature may
direct.
Section 3. This amendment shall not be so construed as to affect the
election or term of any Senator chosen before it becomes valid as part
of the Constitution. [Adopted in 1913.]
ARTICLE XVIII. Section 1. After one year from the ratification of this
article the manufacture, sale, or transportation of intoxicating
liquors within, the importation thereof into, or the exportation
thereof from, the United States and all territory subject to the
jurisdiction thereof for beverage purposes is hereby prohibited.
Section 2. The Congress and the several States shall have concurrent
power to enforce this article by appropriate legislation.
Section 3. This article shall be inoperative unless it shall have been
ratified as an amendment to the Constitution by the legislatures of
the several States, as provided by the Constitution, within seven
years from the date of the submission hereof to the States by the
Congress. [Adopted in 1919.]
ARTICLE XIX. Section 1. The right of citizens of the United States to
vote shall not be denied or abridged by the United States or by any
State on account of sex.
Section 2. The Congress shall have power to enforce this article by
appropriate legislation.
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