Today the ordinary economist employs either method, or both, as the subject-matter demands, and the controversy about methods has become a thing of the past. With respect to the theory of value, neither supply nor demand, neither cost nor utility, neither the capi talist nor the consumer, is now said to exert a predominating influence in the determination of values. The Austrian school, it is now understood, supplied a needed corrective without revolutionizing the earlier theory of value. The Austrians themselves are seen to have been guilty of laying exaggerated emphasis upon the consumer's influence upon value and price, and there is reason to believe that their analysis is based in some degree upon a faulty psychology.

So, similarly, with respect to the scope of economics. The attempt of the classical economists to isolate an "economic man ruled entirely by an enlightened self-interest and unaffected by political, ethical, and humanitarian impulses, is recognized to have been a mistake. But economics has never given itself to a complete study of politics or ethics. It considers ethical and political phenomena when these cannot be dissociated from economic phenomena, but insists, nevertheless, upon the separation of economics from ethics, politics, and sociology. We recognize that these fields are not wholly or clearly differentiated, but we recognize just as clearly that a division of labor is necessary if accurate results are to be achieved. Furthermore, this division of labor is showing itself progressively within the limits of economics itself, as it has shown itself in all growing sciences. Indeed, the present condition of economic thought was so accurately predicted by W. S. Jevons, in 1876, that his words written in the midst of the controversy among the adherents of the deductive, historical, mathematical, and sociological methods of investigation may well be employed to picture the condition of the science of economics as it exists today:

"As I have previously explained, the present chaotic state of economics arises from the confusing together of several branches of knowledge. Subdivision is the remedy. We must distinguish the empirical element from the abstract theory, from the applied theory, and from the more detailed art of finance and administration. Thus will arise various sciences, such as commercial statistics, the mathematical theory of economics, systematic and descriptive economics, economic sociology, and fiscal science. There may even be a kind of cross subdivision of the sciences; that is to say, there will be division into branches as regards the subject, and division according to the manner of treating the branch of the subject. The manner may be theoretical, empirical, historical, or practical; the subject may be capital and labor, currency, banking, taxation, land tenure, etc., not to speak of the more fundamental division of the science as it treats of consumption, production, exchange, and distribution of wealth. In fact, the whole subject is so extensive, intricate, and diverse, that it is absurd to suppose it can be treated in any single book, or in any single manner." i

1 Jevons, Theory of Political Economy, 3d ed., pp. xv, xvi.

APPENDIX B

SUGGESTIONS FOR STUDENTS AND TEACHERS

SOME teachers of economics rely chiefly upon classroom discussions of assignments in a textbook, supplemented, possibly, by certain other reading requirements. Others make large use of lectures and of problems and brief reports assigned in connection with particular subjects discussed in the class. Some require the student to write one or more longer essays or themes on specific topics. In this book specific references, questions, and problems have been appended to each chapter. The aim has been to list only books and papers that have value in themselves and that have a direct bearing upon the subject matter of the respective chapters. References to parallel discussions in other elementary textbooks have for the most part been avoided, the aim being to enable the student to extend his inquiries by reading more advanced and comprehensive treatments of particular problems.

There is no one "best way" of teaching economics, for the methods used must depend very largely upon the size of the classes and the maturity of the students. It has been the experience of the writers, however, that whatever the relative degree of emphasis put upon lectures, classroom discussions, and assigned problem work of different sorts, mastery by the student of one book on general economics, or at least of so much of it as treats of fundamental economic principles, is an essential part of every introductory course in the subject. When pressed for time, the teacher using this book may find it desirable to omit all of it save Book II, "Principles and Problems." When more time is available, it may be deemed wise to include discussions of certain subjects not treated in this volume. "The economic problems of municipalities," "the elements of statistical method," " the problems of poor relief,” “the general principles of market organization," are a few among many possible supplementary topics.

Valuable suggestions on the teaching of elementary economics will be found in various papers and discussions printed in the Journal of Political Economy, Vols. xvii-xxii (1909-1914). Some help may also be gained from papers by C. J. Bullock (Education, Vol. xi); F. R. Clow (Economic Studies, Vol. iv); R. F. Hoxie (Journal of Political Economy, Vol. ix); H. R. Mussey (Educational Review, Vol. xi); and H. W. Thurston (School Review, Vol. iv).

The problem of making an adequate amount of supplementary reading available to students in large classes has been made easier to solve by the publication of volumes of excerpts, designed for this particular use. (W. H. Hamilton, Current Economic Problems; L. C. Marshall, C. W. Wright, and J. A. Field, Materials for the Study of Elementary Economics; C. J. Bullock, Selected Readings in Economics; F. A. Fetter, Source Book in Economics.) Similar volumes have been made up of material on special economic problems. References to many of these will be found among the reading lists appended to the different chapters in this book.

General Works on Economics. - Other American textbooks on economics, cf college grade, are: C. J. Bullock, Introduction to the Study of Economics; H. J. Davenport, Outlines of Economic Theory; F. A. Fetter, Principles of Economics; Irving Fisher, Elementary Principles of Economics; H. R. Seager, Introduction to Economics; and E. R. A. Seligman, Principles of Economics. Larger in scope or more detailed in their treatment of the general principles of economics are H. J. Davenport, Economics of Enterprise; F. A. Fetter, Economics (2 vols.); A. T. Hadley, Economics; F. W. Taussig, Principles of Economics (2 vols.). F. A. Walker's Political Economy (" advanced course "), although presenting a somewhat antiquated view of economic principles, will be found still to possess much interest for the reader.

Among English books, Alfred Marshall's Principles of Economics occupies a peculiarly authoritative position. It is characterized by an unusually intimate grasp of the facts of modern economic life and by a rare degree of ability in critical analysis. It attempts to reconcile many of the modern developments in economic analysis with the fundamental tenets of the political economy of David Ricardo and John Stuart Mill. Critics differ with respect to the degree of success with which Marshall has accomplished this reconciliation. Marshall's Principles is difficult for any but the mature student, and his own attempt at an abridgement, his Economics of Industry, is distinctly inferior to the larger work. Two excellent books that are based in large measure on Marshall's Principles are S. J. Chapman, Outlines of Political Economy, and A. W. Flux, Economic Principles. The comprehensive English work of J. S. Nicholson (Principles of Political Economy, 3 vols.) is even more conservative in matters of economic theory than is Marshall's. Edwin Cannan's Wealth is a small manual with an original and suggestive point of view. Distinctly the most readable and in many respects one of the best recent English works is P. H. Wicksteed's The Common Sense of Political Economy.

Special mention can be made of only a few of the more important German and Austrian works on general economics. Adolf Wagner's Grundlegung der politischen Oekonomie (2 vols.) is characterized by great

erudition and by systematic and painstaking classifications and definitions. It is of particular interest to American students on account of its distinctive point of view, and especially its emphasis upon the general ethical and political aspects of economic problems. The Allgemeine Volkswirtschaftslehre of Gustav Schmoller (2 vols.) is characterized by the consistent use of the historical method, and by the extent to which psychology and ethnology as well as history are drawn upon to explain modern economic institutions. Wilhelm Lexis's Allgemeine Volkswirtschaftslehre is a smaller work, embodying a better exposition of fundamental economic principles than is found in most German works, and distinguished by a large measure of originality. The Allgemeine Volkswirtschaftslehre of Eugen von Phillipovich (2 vols.) contains a more systematic presentation of general economics than does any other work in the German language. It is distinctly catholic, or perhaps, eclectic, in its general theories.

The Traité théorique et pratique d'économie politique (4 vols.) of Paul Leroy-Beaulieu may be taken as the best example of a rather dogmatic type of laissez-faire economics that still commands a large and influential following in France. Representative of a newer school of thought, more hospitable to various projects for constructive economic betterment, is the work of Charles Gide, whose two books on general economics are available in English translation (Political Economy and Principles of Political Economy). The best modern French work is, perhaps, Adolphe Landry's Manuel d'économique.

In other European countries, especially in Italy, Holland, and the Scandinavian countries, there has been much economic writing of a high order. Attention may be called to the English translation of the excellent Dutch work of N. G. Pierson, Principles of Economics (2 vols.), and to the French translation (Manuel d'économie politique) of a book (in Italian) by Vilfredo Pareto, which is possibly the most noteworthy of various modern works in which mathematical methods are used in economic analysis.

Encyclopedias. The most comprehensive encyclopedia of economics is the great Handwörterbuch der Staatswissenschaften (3d ed., 7 vols.), edited by Conrad and others. A smaller, but useful, German reference work is the Wörterbuch der Volkswirtschaft (3d. ed., 2 vols.), edited by Elster. In French, the Nouveau dictionnaire d'économie politique (2 vols., with supplements), edited by Say and Chailley, is already somewhat antiquated and represents a rather narrow point of view. For special fields there are the Dictionnaire des finances (2 vols.), edited by Say and Foyot, and the Dictionnaire du commerce, de l'industrie, et de la banque (2 vols.), edited by Guyot and Raffalovich. The English Dictionary of Political Economy (3 vols.), edited by Palgrave, is a standard reference work. There is no American dictionary or encyclopedia covering the

whole field of economics. The Encyclopædia of Social Reform, edited by Bliss, is useful in its special field. Although published in the early eighties, some of the articles in Lalor's Cyclopædia of Political Science, Political Economy, and United States History (3 vols.) remain of value. The newer Cyclopedia of American Government, edited by McLaughlin and Hart, may be consulted on topics in public finance and related fields. Periodicals. Many of the most important contributions to economics appear in special periodicals devoted to the subject. In the United States there are the Quarterly Journal of Economics, the Journal of Political Economy (monthly), the Political Science Quarterly, and the American Economic Review (the organ of the American Economic Association, quarterly). The Annals of the American Academy of Political and Social Science (monthly), the American Political Science Review (quarterly), and the American Journal of Sociology (bi-monthly), frequently publish papers that are of importance for the student of economics. Limited to more specialized fields are the Quarterly Publications of the American Statistical Association, the American Labor Legislation Review, the Bulletin of the National Tax Association (monthly), and the Survey (weekly, covering the field of charities and other organized movements for social betterment).

In England the principal economic periodicals are the Economic Journal (the quarterly organ of the Royal Economic Society), the Journal of the Royal Statistical Society (monthly), and the Economic Review (quarterly, largely devoted to the ethical aspects of economic problems). The economic journals of the various countries of continental Europe, although of great value to the specialist, are too numerous to mention here.

The "trade journals" of different special industries and in the fields of banking and insurance are often useful to the special students in these fields. In particular the periodicals dealing with the general conditions of business and the money market are often indispensable. The Commercial and Financial Chronicle of New York (weekly) may be specially mentioned on account of the completeness and accuracy of its statistics of money market conditions. For London the Economist and the Statist occupy a similar position. The Annual Financial Review contains convenient compilations of the more important statistics that have appeared in the Commercial and Financial Chronicle during the preceding year. A useful annual survey of international financial conditions is given by Raffalovich's Le marché financier (Paris). Such annuals as the Statesman's Year Book (London), Whitaker's Almanac (London), and the World Almanac (New York), are often useful for reference purposes. The American Year Book contains, among other things, an excellent annual review of important economic legislation.

Reference to the enormous output of articles on economic subjects in