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The aim of the authors has been to cover the entire field of economics, feeling that in this way they best serve the purposes of those students who are going to carry their studies further as well as those whose systematic school study of economics will end with the present treatise.
At certain points in the discussion of distribution, use has been made of the so-called "productivity theory.” In order that there may be no misapprehension, it may be well to say here, what is repeated in the text, that in our view this theory has little or no ethical significance, and that its principal value is as an expeditious method of approaching the supply and demand theory, with which it is in complete harmony. When properly handled, it has the pedagogical virtue of leading the student directly to a study of the innumerable forces which condition supply and demand. But to regard the productivity theory as an end, is to mistake the problem for its solution; and to pass from this theory lightly to the immediate solution of those problems which the theory of distribution is designed to explain, is to offer, in place of scientific explanation, a mass of pretentious platitudes.
Valuable suggestions have been received from Dr. H. C. Taylor and from Dr. W. H. Price, both of the University of Wisconsin.
In conclusion, I wish to express my high appreciation of the work of my friends and colleagues in the revision of this book.
Diversity of economic study, 3; Definition of economics, 4; A
social science, 5; Studies man in process of development, 6; Econo-
mic laws, 7; Principal divisions of economics, 15.
Human and physical conditions of economic activity, 16; Private
enterprise and state activity, 16; Division of labor and exchange,
18; Mutual dependence, 19; Economic classes, 19; Private prop-
erty, 20; Inheritance, 21; Contract, 21; Vested interests, 22;
Freedom, 23; Competition and markets, 24; Coöperation, 26;
Monopoly, 26; Custom, 27; Authority and benevolence, 27.
Basis of the economic stages, 29; Direct appropriation, 30 ;
Primitive man, 31; Pastoral stage, 32; Agricultural stage, 33;
Manorial economy in England, 34; Handicraft stage, 35; Gilds,
35; Domestic system, 36; Agricultural changes, 37; The mercan-
tile system, 37; Patents of monopoly, 38; Industrial stage, 39;
Other classifications, 39.
CHAPTER IV. – THE EVOLUTION OF ECONOMIC SOCIETY (Continued)
England in 1760, 43 ; Revolt against restrictions, 43 ; Mechani.
cal inventions, 44 ; Agricultural changes, 46; Effects of industrial
revolution, 47 ; The factory system, 47 ; Expansion of markets and
industrial specialization, 48; Evils of the transition, 48; Competi-
tion and laissez-faire, 49; Reaction against the passive policy, 50 ;
Quality of goods, 50 ; Protection of labor, 51 ; Labor organizations,
53; Extension of government enterprise, 54.
CHAPTER VII. - ELEMENTARY CONCEPTS
Motives in economic activity, 93; Utility, 95; Free and econo.
mic goods, 95; Effort, 96; Waiting, 96; Services, 96; Personal
qualities as goods, 97 ; Wealth, 98; Wealth and income, 98; In-
dividual and society, 98; Wealth and value, 99; Capital and other
forms of wealth, 100 ; Capital goods and capital value, 100; Social
and individual capital, 101; National wealth and national divi.
PART II. — CONSUMPTION
CHAPTER VIII. - CONSUMPTION
Consumption defined, 106; Productive and final consumption,
106; Human wants, 107; Law of diminishing utility, 107; Differ-
ent uses for the same commodity, 108; Marginal utility, 108; The
economic order of consumption, 110; Future wants, 111; Alleged
present consumption of future products, 112; Consumption and
saving, 113; Luxury, 113; Ideal distribution of wealth, 114;
Harmful consumption, 116; Statistics of consumption, 117.
CHAPTER IX. - PRODUCTION
Production defined, 121 ; The factors of production, 122; Saving
and capital formation, 123; Production and sacrifice, 124 ; Cost of
production and expense of production, 125; Separation in owner-
ship and organization of factors, 126; The undertaker, 127; Kinds
CHAPTER X.- BUSINESS ORGANIZATION
Nature of business units, 136; The corporation charter, 141;
Corporation capital and securities, 143 ; Overcapitalization, 144 ;
Forms of capitalization, 146; Corporation management, 147; Ad-
vantages and social aspects of corporations, 148; Trusts, 150 ;
Publicity, 153; Federal control, 154.
Meaning and significance of value, 156; The market, 158; Con-
ditions of competitive valuation, 159; Supply and demand, 160;
Nature of demand, 160; Elasticity of demand, 163 ; Consumer's
surplus, 164; Nature of supply, 165; The determination of price,
167; Producer's surplus, 169.
CHAPTER XII. — VALUE AND PRICE (Continued)
Normal value, 170; Different conditions of supply, 172; Con-
stant and variable expenses, 174; Joint expenses of production,
177 ; Surplus of bargaining, 177; Non-reproducible goods, 178;
Monopoly value, 179; Retail prices, 179; Public authority and
value, 179; Imputed value, 181; Valuation of production goods,
182; Other theories of value, 183.
CHAPTER XIII. - MONOPOLY
The idea of monopoly, 187; Partial monopoly, 191; Classifica.
tion and causes, 192; Public and private, 193; Social and natural,
194; Local, national, and international, 196; monopoly price, 197 ;
Law of monopoly price, 201; Class price, 202; Monopoly price,
high price, 206; Monopolies and distribution of wealth, 208;
Public policy toward monopolies, 209; Relation of monopoly to
CHAPTER XIV. - MONEY
Definitions, 214; Metallic money, 216; Coinage, 217; Seignior-
age, 217; The standard of value, 221 ; Limited coinage, 224;
Bimetallism, 225; The gold standard, 234; Government paper
money, 234; Colonial and Revolutionary bills of credit, 235 ; The
greenbacks, 236; Fiat money, 241.
CHAPTER XV - CREDIT AND BANKING
Credit transactions, 243; Personal credit, 246; Bank credit, 247;
Bank notes, 250 ; State banks of issue, 250 ; The national banking
system, 251 ; The reserve system, 252; The New York money
market, 253; Speculation and the New York money market, 255;
The independent treasury system, 257; The movement of money,
258; Elastic currency, 260; A central bank, 262; State and pri-
vate banks, 263.