Mr. Keynes' book is a good chapter on this subject - a subject that seems destined to come into greater prominence in the near future. In several respects India's banking troubles are similar to those of the United States. Her banking system is decentralized; her trade demands are highly seasonal in character, while she has no elastic bank-note system to act as a buffer; her government revenues are large, and the fact that varying amounts of government funds are kept on deposit in the few Presidency banks or hoarded in the government treasuries creates a disturbing factor in the money market. Banks in India are poorly regulated, and most of them have been increasing their deposits in recent years much more rapidly than their reserves or their capitals. There are growing up in various parts of India numerous so-called banks which in America would be characterized as "wild cat banks of the worst sort." At present there is much agitation for a state bank in India. The Indian Government is already performing many of the functions of a central bank, in connection with such matters as note-issue, the management of government cash balances, and the regulation of the foreign exchanges. Other benefits," says Mr. Keynes, "cannot be obtained easily, so long as these functions are utterly divorced from those of banking proper" (p. 236). The only adequate solution of the difficulty he finds in the establishment of a state bank, not on the model of the Bank of England, but rather upon that of some such bank as the Reichsbank, the Bank of Holland, or the Bank of Russia. PRINCETON UNIVERSITY. E. W. KEMMERER. BOOKS RECEIVED Altmaier, C. L. Commercial Correspondence. New York: Macmillan._1913. _pp. 252. $.70. (Revised edition.) Babson, Roger W. The Future of the Working Classes. Boston: Babson's Statistical Organization. 1913. pp. 76. $.50. Barker, D. A. The Theory of Money. New York: G. P. Putnam's Sons. 1914. pp. 141. $.40. (The Cambridge Manuals.) Barnard, W. G. Regulation. Seattle: Regulation Publishing Co. 1913. pp. 124. $1.00. (Utopian proposals.) Berlin, Ältesten der Kaufmannschaft. Jahrbuch für Handel und Industrie, 1911, Band I and II; 1912, Band I and II. Berlin: Georg Reimer. 1913. Booth, Charles. Industrial Unrest and Trade Union Policy. London: Macmillan. 1913. pp. 32. $.10. Bouché, B. Les ouvriers agricoles en Belgique. Brussels: Misch & Thron. 1913. pp. 261. 7.50 fr. (Institut Solvay Publication.) Brett, G. S. The Government of Man: An Introduction to Ethics and Politics. London: G. Bell & Sons. 1913. pp. 318. $1.25. Brissenden, Paul F. The Launching of the Industrial Workers of the World. Berkeley: University of California Press. 1914. pp. 82. $.75. Cannon, Ida M. Social Work in Hospitals. ciates. 1913. pp. 260. $1.50. Commons, J. R. Labor and Administration. New York: Survey Asso(Russell Sage Foundation New York: Macmillan. 1913. pp. 431. $1.60. Cornélessen, Christian. Théorie de la valeur. Paris: M. Giard & É. Brière. 1913. pp. 480. 11 fr. (Avec une réfutation des théories de Rodbertus, Karl Marx, S. Jevons et Böhm-Bawerk; 2d edition.) Curran, John P. Freight Rates: Studies in Rate Construction. Chicago: Railway Text Book Publishing Co. 1913. pp. 367. Davenport, H. J. The Economics of Enterprise. New York: Macmillan. 1913. pp. 544. $2.25. Dunn, S. O. Government Ownership of Railways. New York: D. Appleton & Co. 1913. pp. 400. $1.50. Ehrlich, Eugen. Grundlegung der Soziologie des Rechts. Leipzig: Duncker & Humblot. 1914. pp. 409. M. 10. England, Board of Trade. Abstract of Labour Statistics of the United Kingdom. London: Government Stationery Office. 353. 18. 6d. 1913. pp. Fankhauser, W. C. A Financial History of California: Public Revenues, Debts, and Expenditures. Berkeley: University of California Press. 1913. pp. 408. $2.50. Fay, C. R. Copartnership in Industry. New York: G. P. Putnam's Sons. 1914. pp. 146. $.40. (The Cambridge Manuals.) Fisher, Irving. The Purchasing Power of Money: Its Determination and Relation to Credit, Interest and Crises. New York: Macmillan. 1913. pp. 502. $2.25. (Revised edition.) Giffen, Robert. Statistics. London: Macmillan. 1913. pp. 485. $3.00. (Collected Papers, edited by Henry Higgs and G. U. Yule.) Hollingworth, H. L. Advertising and Selling: Principles of Appeal and Response. New York: D. Appleton & Co. 1913. pp. 314. $2.00. Hughan, J. W. The Facts of Socialism. New York: John Lane Co. 1913. pp. 175. $.75. Jenny, E. Der Teilbau nebst Monographie eines Teilbaugrossbetriebs in Russland, 1891-1910. München: Duncker & Humblot. 1913. pp. 346. M. 9. La Salle Extension University. sity. 1913. Chicago: La Salle Extension Univer Dewsnup, E. R., Freight Classification (in four parts); pp. 629. Strombeck, J. F., Reducing Freight Charges to a Minimum; pp. 27. Leonhard, R. Landwirtschaft, Landindustrie, Aktiengesellschaft. M. 1.50. Longuet, Jean. Le mouvement socialiste international. Paris: Quillet. 1913. pp. 648. Magoffin, R. V. D. The Quinquennales: An Historical Study. Baltimore: The Johns Hopkins Press. 1913. pp. 50. $.75. Marks, T. E. The Land and the Commonwealth. London: P. S. King & Son. 1913. pp. 314. 58. Mataré, Franz. Die Arbeitsmittel Maschine, Apparat, Wertzeug. München: Duncker & Humblot. 1913. pp. 214. M. 5.50. New York, Department of Labor. Industrial Directory of New York, 1912. Albany: Department of Labor. 1913. pp. 562. Labor Laws of New York State, 1913. Albany: J. B. Lyon Co. 1913. pp. 252. $1.00. Osborne, A. A. Speculation on the New York Stock Exchange. New Richmond, Mary E., and Hall, Fred S. A Study of Nine Hundred and 1913. pp. 78. $.25. Rubinow, I. M. Social Insurance with Special Reference to American Conditions. New York: Henry Holt & Co. Sakolski, A. M. American Railroad Economics. millan. 1913. pp. 295. $1.25. Schlüter, Herman. Lincoln, Labor, and Slavery. ist Literature Co. 1913. pp. 237. 1913. pp. 525. $3.00. New York: Mac New York: Social Scott, W. A. Money. Chicago: A. C. McClurg & Co. 1913. pp. 124. $.50. Seashore, C. E. Psychology in Daily Life. New York: D. Appleton U. S. Department of Labor. The Consumer's Port. New $1.25. Danger to Hygiene of the Pointers' Trade. New York: The Macmillan Workers from Dusts and Washington: Government (Industrial Accidents and Washington: Government (Industrial Accidents and U. S. Department of Labor. Wages and Hours of Labor, in the Boot and Shoe and Hosiery and Knit Goods Industries: 1890-1912. Washington: Government Printing Office. (Wages and Hours of Labor Series, No. 4.) 1914. pp. 112. Wages and Hours of Labor in the Cigar and Clothing Industries, 1911-1912. Washington: Government Printing Office. 1913. pp. 80. (Wages and Hours of Labor Series, No. 5.) Wehberg, Heinrich. Die Bodenreform im Lichte des Humanistischen Sozialismus. München: Duncker & Humblot. 1913. pp. 170. M.5. Whelpley, J. D. The Trade of the World. New York: The Century Co. 1913. pp. 436. $2.00. Wieth-Knudsen, K. A. Bauernfrage und Agrarreform in Russland. München: Duncker & Humblot. 1913. pp. 260. M. 8. Williams, Aneurin. Co-Partnership and Profit-Sharing. New York: Henry Holt & Co. 1913. pp. 256. $.50. (Home University Library.) Zizek, Franz. Statistical Averages: A Methodological Study. New York: Henry Holt & Co. 1913. pp. 392. $2.50. (Translated by W. M. Persons.) THE QUARTERLY JOURNAL OF ECONOMICS MAY, 1914 THE TRUST PROBLEM1 SUMMARY I. Introductory. Definitions of trust, pool, industrial combination, 382.Theory that elimination of unfair competition and special privileges would rob combinations of monopoly power, 383.- Difficulty of proof or disproof from experience, 385.- Power of pools to advance prices, 389.- Trust prices, 390. — Oil, sugar, tobacco and steel trusts, 391. Unfair competitive methods and special privileges not sufficient explanation of monopoly power, 393. The power of combinations as such to maintain monopoly prices, 395. — Theoretical reasoning on the probable influence of combination and the impossibility of competition, 396. Consequent necessity of regulation or prohibition, 400. II. Possibility of preventing combination, 402. Success of certain Federal cases against combinations, 402. Deterrent effect of more severe penalties, 404.- Reasons for failure of certain trust dissolutions to restore competition, 405. - Possibility of destroying and preventing formal trusts and pools, 408. — Weakness of informal understandings, 410. I THE NECESSITY OF PROHIBITION OR REGULATION In these lectures, we shall confine ourselves to the consideration of trusts and pools, without attempting to cover the whole field of monopoly or of contracts in restraint of trade. The term trust will be used to describe the closely-knit combination or consolidation. 1 Lectures delivered at Harvard University, in April, 1914. |