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Y.—Commercial Cycles (p. 709)

In England there has been no " commercial crisis " since 1866, though crises have continued to make their appearance in the United States, as e.g. in 1893 and 1907. But the alternations of commercial prosperity and depression continue; and the cyclical movement, as Jevons first showed, seems to occupy about ten years. The study of the subject must begin with Jevons' papers (1875-1882) on the Periodicity of Commercial Crises, printed in his Investigations in Currency and Finance (1884). A guide to the history and literature of the subject will be found in Herkner's article Krisen in Conrad's Handworterbuch der Staatswissenschaften. The relation between Foreign Trade, Bank Rate, Employment, Marriage Rate, Pauperism, &o., for the period 18561907 can be conveniently observed in Table IX, and Chart II, " The Pulse of the Nation," in Beveridge, Unemployment. On American conditions and their connexion with currency questions, see the papers of Seligman and others in The Currency Problem and the Present Financial Situation (N. Y. 1908).

Z.—Rents In The Nineteenth Century '(p. 724)

According to an estimate of Mr. R. J. Thompson printed in the Journal of the Royal Statistical Society (Dec. 1907) the rent of agricultural land in England and Wales advanced by probably 40 per cent, in the first twenty years of the nineteenth century. After 1820 a period of depression ensued, followed in 1840 by the beginning of an upward movement which continued with little intermission till 1878, when a serious depression again set in. The average rent of agricultural land in 1900 was 34 per cent, below the maximum of 1877, and 13 per cent, below the figure of 1846. The average rent of farm land in 1900 was estimated at about 205. per acre, subject to charges for repairs, &c., amounting on the average to 35 per cent.; so that the net rent probably averaged 13s. per acre. Estimating expenditure on buildings, fences, drainage, &c., at 12?. per acre, 3J per cent, on this would amount to 8s. 5d., leaving 4s. 7cZ. per acre as " economic rent," in the Ricardian sense of payment for the use of the " original and indestructible powers of the soil."

AA.—Wages In The Nineteenth Centtjby (p. 724)

There was undoubtedly a very large increase both in nominal or money wages and in real wages (i.e. their purchasing power) in the United Kingdom during the course of the century. The subject may be studied in Giffen's paper on The Progress of the Working Classes in the last half-century, reprinted in Essays in Finance (2nd series, 1886; and the first and more important of them more recently in Economic Inquiries and Studies, vol. i.); Webb, Labour in the Longest Reign (Fabian Tract, 1897); Bowley, Wages in the United Kingdom (1900), National Progress (1904), and his articles in the Journal of the R. Statistical Society; and Wood's article on Real Wages and the Standard of Comfort since 1850, in Jour. R. Stat. Soc. (March 1909).

The conclusions arrived at by the last two statisticians for the period since 1850 are thus summarised in the article last quoted, 1900-1904 being taken by Bowley, and 1900-1902 by Wood, as basis, and called 100:

[merged small][merged small][table]

Compare also the table in Appendix X above.

The progress in real wages began before 1850; thus, e.g. Bowley's Index Numbers for 1830 and 1840 are 45 and 50 respectevily (see National Progress, p. 33); and, for earlier periods, his conclusions are that while during 1790-1810 real wages were falling slowly, during 1810-1830 they were rising slowly (see Appendix (1908) to Palgrave's Dictionary of Political Economy). The general result would seem to be a large rise on the whole between 1810 and 1900, though between 1840 and 1860 and again between 1873 and 1879 wages were almost stationary.

During the century a progress in real wages of substantially the same character took place in other countries. For a comparison by Bowley of the United Kingdom, the United States and France for the period 1844-1891, see Econ. Jour. viii. 488; and for France, 1806-1900, see Gide, Economie Sociale, p. 64.

BB.—The Importation Of Food (p. 738)

The following figures are given in the Report of the Agricultural Committee (1906) of the Tariff Commission:

Imports Of Wheat And Flour.


For other estimates, and for sources of import, see " First Fiscal Blue-book" (British and Foreign Trade and Industry, 1903), p. 108.

CC.—The Tendency Of Profits To A Minimum (p. 739)

Compare Cliffe Leslie's article on The History and Future of Interest and Profit in the Fortnightly Review (Nov. 1881 : reprinted in Essays, 2nd ed.); and Leroy-Beaulieu, Repartition des Eichesses (3rd ed. 1888), ch. 8; and for the history of the rate of interest, see Schmoller, Grundriss, § 191 (Principes, vol. iii.).

DD.—The Subsequent History Of Co-operation (p. 794)

Since Mill wrote, Industrial Co-operation in England has taken the direction mainly of the multiplication of retail stores, deriving their supplies in great measure from a great Wholesale Society; this "Wholesale" producing some of its goods in its own factories and purchasing the rest in the open market. It has not taken the form anticipated by him of self-governing productive associations, providing their own capital. The history of the various movements grouped under the name of Co-operation may be examined in Schloss, Methods of Industrial Remuneration (3rd ed. 1898), chs. 22-24; Potter, The Co-operative Movement (1891); Webb, Industrial Co-operation (1904); Aves, Co-operative Industry (1907); and Fay, Co-operation at Home and Abroad (1908). For recent developments in " independent " productive co-operation, see Ashley, Surveys, Historic and Economic (1900), p. 399.

EE.—The Subsequent History Of Income Tax (pp. 806, 817)

For developments later than the time of Mill, reference should be had to Bastable, Public Finance (3rd ed. 1903), bk. iii. ch. 3 and bk. iv. ch. 4; Hill, The English Income Tax (Publications of the American Economic Association, 1889); Seligman, Progressive Taxation (Am. Econ. Assoc. Quarterly, 2nd ed. 1908); and two recent Reports, one of a Departmental Committee on the present working of the income tax (1905), and one of a Select Committee on Graduation (1906). In the Finance Bill now (1909) before Parliament it is proposed to introduce a super-tax on incomes above a certain point, and give an abatement on incomes below a certain point in respect of every child (up to a specified number) below a certain age.

FF.—The Taxation Of Land (p. 819)

In the Finance Bill now (1909) before Parliament it is proposed to impose a tax (1) of 20 per cent, on the future Unearned Increment in value of nonagricultural land; (2) of |d. in the pound of the capital value of " undeveloped" land. The proposed exemption of agricultural land, when compared with Mill's assumption that there was likely to be a constant increase in the value of agricultural land owing to a rise in the price of food due to the growth of population, indicates the effect upon the public mind of the agricultural depression of the last two decades'of the nineteenth century. On the general question of the assessment and special taxation of land values, see Report of the Royal Commission on Local Taxation (1901); Fox, The Rating of Land Values (1906); and the Blue-book on Taxation of Land in Foreign Countries (1909).

GG.—The Incidence Of Taxation (p. 863)

On the whole subject of The Shifting and Incidence of Taxation recourse can now be had to the treatise of Selignian bearing that title (2nd ed. 1899). For the incidence of Death Duties, Rates on Houses and Land, Inhabited House Duty, Taxes on Trade Profits and Taxes on Transfer of Property, see in particular the elaborate replies by "financial and economic experts" in the Blue-book, Memoranda relating to the Classification and Incidence of Imperial and Local Taxes (1899); and on the incidence of Import and Export Duties, see Edgeworth in Economic Journal, iv. pp. 43 seq.

HH.—Company And Partnership Law (p. 904)

Partnership en commandite, as it is called abroad, is now allowed in the United Kingdom by the Limited Partnerships Act of 1907. This Act makes it possible to create a " limited partnership, wherein one or more persons, called general partners . . . shall be liable for all debts and obligations of the firm," and " one or more persons, to be called limited partners, who shall at the time of entering into such partnership contribute thereto a sum as capital . . . shall not be liable for the obligations of the firm beyond the amount so contributed." A limited partner must not take part in the management of the business.

The most important development since Mill wrote, however, has been the growth in commercial practice of what came to be known in business language as "private companies," though organised under the general company law. This form has been increasingly adopted by businesses which wished to combine the advantages of Limited Liability with the advantage of unity and privacy of management belonging to the sole trader or old-fashioned firm. The legality of such arrangements, which were certainly not contemplated by the legislature when it introduced Limited Liability, was finally settled by the decision of the House of Lords in 1896 in the case of Broderip v. Salomon. See hereon Palmer, Private Companies and Syndicates. The conception of a " private company" was finally recognised and defined by the Companies Act of 1907. According to this Act a private company "means a company which by its articles (a) restricts the right to transfer its shares; and (b) limits the number of its members (exclusive of persons who are in. the employment of the company) to fifty; and (c) prohibits any invitation to the public to subscribe for shares or debentures." For the formation of such a company, instead of the seven members formerly required by the Companies Acts, two members will now suffice.

II.—Protection (p. 926)

Mill's general line of argument has been further pursued and applied to contemporary conditions by Cairnes, Leading Principles; Fawcett, Free Trade and Protection (6th ed. 1885); and Fairer, Free Trade and Fair Trade (4th ed. 1887). Criticisms and considerations of other kinds will be found in Sidgwick, Principles of Political Economy, ch. v.; Patten, Economic Basis of Protection (Philadelphia, 1890); Johnson, Protection and Capital, in Political Science Quarterly, xxiii. (N. Y. 1908); Lexis, Handel, in Schonberg's Handbuch der Politischen Oekonomie (4th ed. 1898), vol. ii.; and Schmoller, Grundriss, §§ 253271 (in Fr. trans.: Principes d.Economic Politique, vol. v.).

Mill's concession in favour of "infant industries" (bk. v. ch. 10, § 1) was much quoted subsequently in America, Australia and Canada. Writing to a correspondent in 1869 (see Letters, ed. Elliot), he expressed an intention to "withdraw" the opinion, and remarked: "Even on this point I continue to think my opinion was well grounded, but experience has shown that protectionism, once introduced, is in danger of perpetuating itself . . . and I therefore now prefer some other mode of public aid to new industries, though in itself less appropriate "; but in preparing the edition of 1871 he contented himself with the verbal changes indicated on p. 922 n. 1.

Mill makes no reference in his Principles to the writings of Friedrich List, the intellectual founder of the Zollverein, whose ideas have greatly influenced the subsequent commercial policy as well as the economic thought of Germany. Thereon see List's National System of Political Economy (1840, Eng. trans, by Lloyd: new ed. with Introduction by Nicholson, 1904), and Schmoller's article on List in Zur Litteraturgeschichte der Staats- und Sozialwissenschaften (1884).

A new stage in the discussion was opened by the grant of Preference to imports from England by the Dominion of Canada in 1897—an example since followed by the other great self-governing Dominions of the British Empire; and by the movement in favour of a policy of reciprocal Preference by the Mother Country, initiated by Mr. Joseph Chamberlain, then Colonial Secretary, in 1903. The most important collections of political speeches on this subject are, on one side, those of Chamberlain, Imperial Union and Tariff Reform (1903); Bonar Law, The Fiscal Question (1908); and Milner, Imperialism and Social Reform (1908); and, on the other, Asquith, Trade and the Empire (1903); Haldane, Army Reform and Oilier Addresses (1907); and Russell Rea, Insular Free Trade (1908). See also Balfour, Economic Notes on Insular Free Trade (1903).

Among the writings called forth by the controversy may be mentioned, of those in favour of some modification of the present tariff policy: Caillard, Imperial Fiscal Reform (1903); Ashley, The Tariff Problem (2nded. 1904); Cunningham, The Rise and Decline of the Free Trade Movement (1904) and The Words of the Wise (1906); Graham, Free Trade and the Empire (1904); Palgrave, An Enquiry into the Economic Condition of the Country (1904); Price, Economic Theory and Fiscal Policy, in the Economic Journal, xiv. (Sept. 1904); Compatriots' Club Lectures (1905); Kirkup, Progress and the Fiscal Problem (1905); Welsford, The Strength of Nations (1907); Lethbridge, India and Imperial Preference (1907); and Milner's article on Colonial Policy and Vince's on The Tariff Reform Movement in Palgrave, Dictionary of Political Economy, Appendix (1908).

Among the writings in favour of the present policy may be mentioned: Money, Elements of the Fiscal Problem (1903); Avebury, Essays and Addresses (1903); British Industries under Free Trade, ed. Cox (1903); Labour and Protection, ed. Massingham (1903); Smart, The Return to Protection (1904); Hobson, International Trade (1904); Bowley, National Progress (1904); various papers by Gift.en in Economic Enquiries (1904); Brassey, Sixty Years of Progress (new ed. 1906); Pigou. Protective and Preferential Import Duties (1906); The Colonial Conference (Cobden Club, 1907); and Marshall, Memorandum on the Fiscal Policy of International Trade (White Paper, 1908).

Materials, statistical and political, for a judgment will be found in the two "Fiscal Blue-books "—British and Foreign Trade and Industry, Memoranda, d-c., 1st series, 1903; 2nd series, 1904; in the Proceedings of the Colonial Confer-encesot 1887,1894,1897, 1902,1907; and in the Reports and Memoranda of tht Tariff Commission, since 1904. Among foreign works bearing upon the problem may be particularly mentioned: Fuchs, The Trade Policy of Great Britain (1893: Eng. trans. 1905); Wagner, Agrar- und Industriestaat (2nd ed. 1902); Schwab, Chamberlain's Handelspolitik, with Preface by Wagner (1905); and SchulzeGaevernitz, Britischer Imperialisms (1906). On the history of the English Corn Laws, Nicholson's book with that title (1904) should be consulted. Free Trade and the Manchester School, ed. Hirst (1903), is a convenient collection of speeches, &e,, of the thirties and forties.

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