REVIEWS (continued) — Arendt, Charles, Economie Politique Scientifique; Définitions et Methodes. Ashley, Prof. W. J., Translated and Edited by, Reflections on the Formation Bosanquet Ernest Schuster PAGE 236 78 551 248 70 Cohn, Prof. Gustav, System der Nationalökonomie. By Prof. W. J. Ashley... 256 Devine, Edward Thomas. Ph. D., Economics. By Edwin Cannan 560 73 German Coal Miner, A, How the English Workman Lives. By Prof. F. Y. ... Giddings, Franklin Henry, The Elements of Sociology. By Prof. H. Sidgwick Howard, E., To-morrow: A Peaceful Path to Real Reform. By F. M. Butlin Inama-Sternegg, Dr. Karl Theodor von, Deutsche Wirtschaftsgeschichte. By 440 411 424 564 416 ... Knapp, Georg Friederich, Grundherrschaft und Rittergut. By Prof. W. J. 253 Koren, John, Economic Aspects of the Liquor Problem. By Sidney Peel 565 421 243 Sociale en Italie. By E. Castelot 236 Macfarlane, C. W., Value and Distribution: an Historical, Critical, and 233 79 Marco, Prof. A. de Viti de, Saggi di Economia e Finanza. By Prof. C. F. Bastable 242 72 Mase-Dari, E., Sul Bilancio dello Stato. By Prof. C. F. Bastable 562 ... Massart, Jean, et Emile Vandervelde, Parasitisme organique et parasitisme 75 Mayo-Smith, Richmond, Statistics and Economics. By L. L. Price 557 246 Micheli, M. Horace, State Purchase of Railways in Switzerland. By W. M. Acworth ... 69 REVIEWS (continued) — PAGE Neymarck, Alfred, Vocabulaire Manuel d'Economie Politique. By E. Castelot 236 ... 224 74 By J. Richmond, Mary E., Friendly Visiting among the Poor; A Handbook for Rodbertus, Karl, Overproduction and Crises. By Prof. E. C. K. Gonner 77 Cannan 260 Seligman, Prof. Edwin, The Shifting Incidence of Taxation. By Prof. C. F. 240 Sites, Clement M Lacey, Centralised Administration of Liquor Laws in the 566 ... Souchon, Prof. A., La Propriété Paysanne, Étude d'Economie Rurale. By Stetson, Charlotte Perkins, Women and Economics. By Frances M. Butlin ... Tessonneau, Marcel, Esquisse d'un Tableau Raisonné des Causes de la Pro- Villey, Prof. Edmond, L'Euvre Économique de Charles Dunoyer. Bonar 439 68 560 Waxweiler, Émile, La Participation aux Bénéfices. By Prof. Ch. Gide Wright, Carroll D., Outline of Practical Sociology. By A. L. Bowley Acworth, W. M., Professor Cohn and State Railway Ownership in England... 92 569 277 136 Bradby, Barbara L., and Anne Black, Women Compositors and the Factory Acts 261 Brooks, John Graham, Organised Labour in the United States 88 Burlumi, Theodore A., The Overproduction of Currants 633 Butlin, Frances M., International Congress of Women... 450 Chapman, S. J., The Trades Union Congress and Federation 80 The Regulation of Wages by Lists in the Spinning In- 592 Cohn, Gustav (Translated by C. A. Foley), State Railways and State Revenue 93 NOTES AND MEMORANDA (continued) — PAGE Dawson, William Harbutt, The Housing of the Working Classes in Germany 445 Deverell, Edith M., Slate Clubs 266 Duckworth, Arthur, The Economic Aspect of Australian Federation 322 125 286 Flux, Prof. A. W., The Danish Lock-Out 455 Hutchins, B. L., Notes towards the History of London Wages 599 605 625 101 Ilbert, Lettice, Labourers' Dwellings Jastrow, Henriette, Domestic Servants in Germany Kiaer, A. Th., The Norwegian System of Regulating the Drink Traffic Belgium... Oncken, August, New Tendencies in German Economies Parker, E. H., The Chinese Salt Trade. Seligman, Prof. E., on the Mathematical Method in Political Economy Trüdinger, Otto (Transiated by C. A. Foley), State Protection of Industry and Commerce in Württemberg 129 462 Westergaard, Prof. Harald, Mortality in Extreme Old Age Wood, George Hy., The Course of Average Wages between 1790 and 1860 Z., Compulsory Arbitration... Z., Successful Profit-Sharing OBITUARY:- Farrer, Lord Knies, Prof. Karl Meyer, Dr. Rudolph Rawson, Sir Rawson, K.C.M.G. 664 489 141 665 RECENT PERIODICALS AND NEW BOOKS... 150-150, 342-352, 191-504, 674-687 THE ECONOMIC JOURNAL MARCH, 1899 OUGHT MUNICIPAL ENTERPRISES TO BE ALLOWED TO YIELD A PROFIT ?1 WHATEVER Views he may hold as to the remote future, I do not suppose any one will be inclined to deny that just at present in this country the economic work-the purely and obviously economic work-of municipalities and similar local governments is increasing in importance, not only absolutely, but also in proportion to the whole of human economic activity. So if an English economist holds that economics ought to be useful to the population of this particular planet, not merely as an intellectual exercise affording food for thought and speculation, as Adam Smith says of religion, but also as affording some guidance in practical affairs, he is bound to endeavour to give some general answers to the important questions to which the extension of municipal economic activity gives rise. One of the most important of these questions is: Should municipal enterprises pay, or should they be worked at cost price?—should they bring in where possible something in aid of the general rates of the locality, or should all such aid be foregone by the general body of ratepayers? Recently a Minister of the Crown, who had considerable municipal experience many years ago, likened a municipality to a joint-stock company. If the parallel were exact, there would be an end to the question which I have propounded, for no one supposes that joint-stock company enterprise could be carried on if dividends were disallowed. But the parallel is not at all exact. It is a useful comparison, however, and we cannot do better than approach the question with a brief review of the 1 Read before Section F of the British Association, 1898. No. 33.-VOL. IX. B points of resemblance and difference between a municipality or other local government, and a public joint-stock company. Probably the first thing to strike the casual observer will be the similarity of the government of the two institutions. Just as the government of the joint-stock company is entrusted to certain elected representatives called the directors, so the government of the locality is entrusted to certain elected representatives called the town or district council. Neither the electors of the directors nor the electors of the council often interfere directly in the management, and both in the company and the locality their powers of direct interference are almost entirely limited to placing a veto on the raising of new capital. There is, of course, nothing surprising in the similarity, for the municipal corporation and the jointstock company are only two kinds of corporation, and in America, indeed, every company is called a "corporation corporation" at this very moment. So far as their government is concerned, the chief difference between the municipal corporation and the business corporation lies in the fact that in the municipal corporation the electors exercise their right of election, at any rate to the extent of taking their choice between the nominees of two political caucuses, whereas in the other corporation the electors seldom do more than acquiesce in the election of directors nominated by the directors themselves. The shareholders of an ordinary public company are a widely scattered body, knowing nothing at first hand either about each other or about the business of the company; whereas the electors in a locality are each other's neighbours and have the results of the working of the municipality immediately before their eyes every day of their lives. Consequently the electors in a locality are able and willing to exercise far more influence than the shareholders in a company. Secondly, it will be observed that the municipal corporation and the business corporation resemble each other in the fact that the bond of union between the members of the corporation is not a directly personal one, but one founded on the connection between persons and certain property. Just as you become a proprietor or shareholder in a public company by purchasing certain stock or shares, so you become a citizen, burgess, or parochial elector in a place by owning or occupying in a certain way for a certain period a particular kind of fixed property within the area of the city, borough or district. In neither case is there any power to reject a new member or expel an old one. Neither the proprietors of the G. W. R. nor the citizens of Bristol can refuse you admittance to their register because you have cheated at cards or married |