Modern Economic Problems - Economics Vol. II

Economic Problems, by Frank
Albert Fetter

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Title: Modern Economic Problems Economics Vol. II
Author: Frank Albert Fetter
Release Date: April 30, 2004 [EBook #12217]
Language: English
Character set encoding: ISO-8859-1
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Economics--Volume II
MODERN ECONOMIC PROBLEMS

BY
FRANK A. FETTER, PH.D., LL.D.
PROFESSOR OF ECONOMICS, PRINCETON UNIVERSITY
1916

TO THE MOTHER WITH A YOUTHFUL HEART AND
SYMPATHETIC INTEREST IN ALL THINGS HUMAN

TABLE OF CONTENTS

PART I. RESOURCES AND ECONOMIC
ORGANIZATION.
1. Material resources of the nation
2. The present economic system

PART II. MONEY AND PRICES.
3. Nature, use, and coinage of money
4. The value of money
5. Fiduciary money, metal and paper
6. The standard of deferred payments

PART III. BANKING AND INSURANCE.
7. The functions of banks
8. Banking in the United States before 1914
9. The Federal Reserve Act
10. Crises and industrial depressions
11. Institutions for saving and investment
12. Principles of insurance

PART IV. TARIFF AND TAXATION.
13. International trade
14. The policy of a protective tariff
15. American tariff history
16. Objects and principles of taxation
17. Property and corporation taxes
18. Personal taxes

PART V. PROBLEMS OF THE WAGE
SYSTEM.
19. Methods of industrial remuneration

20. Organized labor
21. Public regulation of hours and wages
22. Other protective labor and social legislation
23. Social insurance
24. Population and immigration

PART VI. PROBLEMS OF INDUSTRIAL
ORGANIZATION.
25. Agricultural and rural population
26. Problems of agricultural economics
27. The railroad problem
28. The problem of industrial monopoly
29. Public policy in respect to monopoly
30. Public ownership
31. Some aspects of socialism
Index

FOREWORD
The present volume deals with various practical problems in economics,
as a volume published a year earlier dealt with the broader economic
principles of value and distribution. To the student beginning
economics and to the general reader the study of principles is likely to

appear more difficult than does that of concrete questions. In fact, the
difficulty of the latter, tho less obvious, is equally great. The study of
principles makes demands upon thought that are open and
unmistakable; its conclusions, drawn in the cold light of reason, are
uncolored by feeling, and are acceptable of all men so long as the
precise application that may justly be made of them is not foreseen. But
conclusions regarding practical questions of public policy, tho they
may appear to be simple, usually are biased and complicated by
assumptions, prejudices, selfish interests, and feelings, deep-rooted and
often unsuspected.
No practical problem in the field of economics can be solved as if it
were solely and purely an economic problem. It is always in some
measure also a political, moral, and social problem. The task of the
economist "as such" is the analysis of the economic valuation-aspects
of these problems. We may recall Francis A. Walker's comparison of
the economist's task with that of the chemist, which task, in a certain
case, was to analyze the contents of a vial of prussic acid, not to give
advice as to the use to make of it. Accordingly, in the following pages,
the author has endeavored primarily to develop the economic aspects of
each problem, and has repeatedly given warning when the discussion or
the conclusions began to transcend strict economic limits. In many
questions feeling is nine-tenths of reason. If the reader has different
social sympathies he may prefer to draw different conclusions from the
economic analysis.
The outlook and sympathies that are expressed or tacitly assumed
throughout this work are not so much those personal to the author as
they are those of our present day American democratic society, taken at
about its center of gravity. When the people generally feel differently
as to the ends to be attained, a different public policy must be
formulated, tho the economic analysis may not need to be changed.
Therefore, in some cases, the author has discussed merely the economic
aspect, or has referred to the general principles treated in volume one,
and has purposely refrained from expressing his personal judgment as
to "the best" policy for the moment.

The present volume was planned some years ago as a revision of a part
of the author's earlier text, "The Principles of Economics" (1904). The
intervening years have, however, been so replete with notable
economic and social legislation and have witnessed the growth of