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maximum product is what we all are
demanding of labor and capital alike,
but the maximum product can be as-
sured in only one way, and that is by
considering the consumer's abiUty to
buy, by fair profits, which imply rea-
sonable prices, which in turn stimulate
work and e£Fort in the hope of consump-
tion, the fullest satisfaction of needs
and desires. Profiteering is not good
economics, for it destroys the market,
puts too many people out of business,
in eflFect, by placing goods beyond their
reach. It is not in the interest of max-
imum production, and maximum gen-
eral prosperity. Its moral and spir-
itual eflFect is to incite class war
and recrimination and an ugly feeling
that is as far removed as possible
from promoting maximum work and

I believe that if industry were, or if
it ever shall be, conducted strictly for
the common good, rather than with
regard primarily, as now, to profit to
the individual, the results would be
astonishing to the average man; that
production would be the objective then
of both employer and employee; that
the output would be so large that labor
would not be overworked and yet
would obtain a much greater income in
actual goods than ever before; and that
for the same reason the returns to the
investor would be, if not any greater
than now, or in many instances not so
great, yet much steadier and more cer-
tain. I am not speaking of industry con-
ducted by the state, for which I do not
have the slightest sympathy, but indus-
try conducted as private enterprise,
with the viewpoint of the greatest pos-
sible product at the least cost.

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Industrial Peace


Agriculture the Basic Industry

I believe that the basic industry of
all is agriculture, producing things that
are elemental to life, the food by which
we live. Should not all other industries
consider that of food? The farmer
until recent years has not had the
power to express himself. He has
lacked the facilities to act in combina-
tion. Other industries are in advance
of him in this respect, while he remains
and to a degree must be an individual-
ist. So he is likely to fall behind in the
race, and has fallen behind. It is not
enough to pat him on the back and say
he is a good fellow and adjure him to
go on producing and working 12 or 15
hours a day; and it is not enough to
provide him with agricultural schools
where his boys can become trained in
the higher agriculture, the study of
soils and the chemistry of plant life.
What is the use of all this education
for thousands of farm boys, tens of
thousands, every year, if when he goes
out, trained to till the soil, he finds no
land upon which he can set to work?

The nation, as a whole, must con-
sider the needs of agriculture and
among these needs is the provision of
land for the trained young men to till.
We have ignored this problem. We
have drifted without thought, letting
economic laws work their eflFects, and
permitting privilege and injustice to
hold the wealth which God himself
provided, the land, out of use, for
speculative returns.

We are by no means helpless in this
matter, for we have the power of taxa-
tion and we have not availed ourselves
of it to check land speculation, letting
matters drift, until land has advanced
to such prices that young men cannot
obtain it.

Need for a Constructive Program
FOR Agricultural Interest

We have done nothing either to
assist trained young men to get on the

land through credit advanced by the
community. There is no basis of
credit equal to land. This we have
known but never have had such a re-
markable proof of it as during the great
war. In the five years of the conflict
in Europe, German imperial bonds de-
preciated 22 per cent. But in the same
period German land bank mortgage
bonds depreciated only 2 per cent, or
less than our own liberty bonds. Here
is a striking proof of the supremacy of
the land as the basis of credit.

A great New York banker, not many
years ago, testified before a conmiittee
of Congress that in making a loan he
considered first of all the character of
the applicant. He would loan to a
man of little property but of trust-
worthy character when he would not
to a man with large security but unre-
liable character. In the graduates of
our agricultural colleges we have young
men of character, who have proven
that they possess energy and industry
and ambition. We can give these
young men credit based upon their
training, their character and the land
they till.

Today, the farmer is organized.
There are a dozen great national farm
organization3 and through them tlie
farmer is expressing himself and is be-
ing heard. Let us listen to what this
important interest has to say of its
problems and its needs. The platforms
and resolutions adopted by the Na-
tional Farmers' Congress, the Grange,
the Societies of Equity, the Farm
Unions, the Federated Farm Bureaus,
the Farmers' National Council, the
National Board of Farm Organizations
and many bodies representing more
particularly certain branches of agri-
culture, as dairying and livestock,
speak the farmer's mind, and it is
surprising how largely they are in
agreement. The nation must give
more heed to these utterances from the

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The Annals of the American Academy

producers of food as to the rights and
interests of agriculture.

The farmers are asking no special
favors; indeed they are very much op-
posed to special privileges to any class.
But if there is anything more funda-
mental than getting enough food for
the people, I have never heard of it.
Moreover, unless we do some real think-
ing along this line there wiU be people
who wiU be hungry one of these days.
It is essential that a constructive pro-
gram be adopted at once, which will
give the agricultural interests of this
country a fair chance — ^that will enable
farmers to develop their business, edu-
cate their children and work into the
most efficient production of food.

The first thing is to curb the profi-
teers and supply agricultural essentials,
such as lumber, agricultural imple-
ments, clothing, shoes, and the Uke, at
an honest price,

We must also encourage legislation
curbing manipulation of the market
and gambUng by the grain, provision,
and stock exchange sharks, who seek to
control unjustly the supply and the
prices of foodstuffs, cotton, and other
necessities of life. We should also
have federal supervision of the packing

A further extension in cooperation is
needed in both country and city — it is
essential in building up the agricul-
tural interests. There should be legis-
lation to remove all artificial restric-
tions on the sale of farm products
clearly estabUshing the rights of farm-
ers to collectively market their own
products without legal or other inter-
ference. We must work out a better
system of distribution and marketing,
and supply food at a lower cost, while
making more than the cost of produc-
tion itself.

Let's try to stop this landslide from
the country into the cities. Let's get
a vision of what this great nation can

be, with its industrial and business life
working in harmony and perfect coop-
eration with the agricultural interests,
and with plenty of food for every one,
at prices which the workers can afford
to pay and yet which will supply
modern country homes and other es-
sentials for farmers. Better schools,
modern homes, social advantages and a
greater opportunity to get the brighter
things of life are essential.

A Program for the Future

These are topsy-turvy times, but
there never was a time when being
unselfish was such enlightened selfish-
ness as now. I believe we should all
sit tight, stay by our jobs and stand
by our country. Many * things are
badly mixed here at home, but they
are not going to remain mixed. To
restore normal conditions it will re-
quire the unselfish cooperation of
patriotic Americans of all walks of life.
Of course, we have tremendous prob-
lems but we have only to keep our
heads and be really and truly thankful
that we are American citizens, to come
through our difficulties.

We must all unite to win the right
conditions in peace times, just as we
united to win the war. Then this
great national readjustment will be
accomplished without hardship, and
the nation wiU not feel the strain which
otherwise wiU be heavy, possibly to the
breaking point.

We must apply the principle of the
Golden Rule as never before. We
need more of the spirit of fair play be-
tween man and man. It is a poor time
for strikes and for strife. Greater
industry, harder work, more rigid
economy in public and private expendi-
tures, doing without all luxuries, and,
above everything else, increased pro*-
duction are today as solemn a duty
upon all alike as they were during the
crisis of the war. I have faith in the

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Industrial Peace 171

common sense and steadfast patience can pluck, American inventive genius,

of the American people, the common a thorough-going American poUcy, and

sense and the patience that wastypi- the real American spirit must be backed

fied and deified in Lincoln. up as never before with true American

It is a time especially when partisan- statesmanship. I have the utmost

ship must be put aside and every man confidence that we shall meet these

must cooperate to the utmost of his great problems in a way that befits

ability. American initiative, Ameri- America and her destiny.

Digitized by



Bullock, Edna D. and Johnsen, Julia E. Emr
ploymeni of Women, Pp. xxxvii, 214. New
York. H. W. WDson, 19«0. $1.25.

Phelpb, Edith M. American Merchant Marine.
Pp. xxxvii, 844. New York, H. W. Wilson.
1920. $1.50.

Talbot, W. and Johnben. Juua E. American-
izatUm. Pp. Ldv, 373. New York. H. W.
Wilflon. 1020. $1.80.
All of these books are second editions of
volumes in the Debaters' Handbook Series
heretofore reviewed in Trb Annals. The vol-
ume on the American Merchant Marine contains
a supplement of nearly 150 pages bringing the
material up to 1919. There is a similar supple-
ment to the volume on Employment of Women
bringing the material up to date of publication.
The volume on Americamaation discusses
the principles of Americanism, essentials of
Americanization, technique of race-assimilation.
It contains a good bibliography. A supplemen-
tary section of fifty pages brings the discussion
of Americanization up to date. All books are
eminently suited to their purpose.

HoBSON, J. A. Taxation in the Neto State, Pp.
X, 258. New York, Haroourt. Brace and
Howe, 1920.

In most modem states the tendency in taxar
tion has been (1) to draw an increasing propor-
tion of the tax revenue from direct taxes, (2) to
do away with specific taxes earmarked for some
special public service and (3) to adopt the policy
.of graduation for direct taxes. A tax to be
sound must not remove or impair any instru-
ment or incentive to essential or useful processes
of production, nor remove or impair any essential
or useful element of consumption.

The phrase " ability to pay ** should be changed
to "ability to bear.*' The following groups
have no ability to bear taxation and if taxation
is placed upon them the tax must be shifted:
(1) Standard wages — including waged not only
sufficient to keep up physical efficiency but also
to keep up standard ooxnforts and pleasures; (2)
A minimum rate of interest upon invested capital
(the current world rate) to induce the saving
class to sacrifice current spending power to save
the new capital needed for industrial processes;

(3) Standard incomes, differing in each grade of
business, for the remuneration of business med;

(4) Standard rents of ability, varying with each
profession, but sufficient to keep up the various

professional classes. These groups have no trae
ability to bear taxes and taxes placed upon thea
must inevitably be shifted.

The real power to bear taxes rests with eco-
nomic rents, whether "scardty" or differential
rents, and with all interest, profits and other
payments for the use of capital, brains or labor
which are due to superior economic opportunities
including monopolies, quasi monopolies with aD
business subject to the law of increasing returns.

To attempt to tax the groups who cannot bear
taxes is to cause great economic waste and dis-
content incident to the shifting of these taxes oo
to those groups able to bear taxes.

Revenues cannot be secured from sources able
to bear taxation, without impinging on essential
production processes or on consumption stand-
ards in quantity sufficient to maintain the
interest on the present debt of Great Britain,
and to meet the future needs of the state. The
author, therefore, urges a levy on capital suffi-
cient to underwrite about seventeen aiui one-half
billion dollars of Britain's existing public debt.
His argument for this is not only to lower the
burden of an income tax and of other direct
taxes in the future but also to make the people
in the British Isles the equal competitors of any
other group of people. He points out that,
whereas preceding the war large quantities ol
goods were flowing into England yearly as inter-
est on debts due England, now goods must flow
out of England to pay the interest on about
five billion dollars due to those outside of the
British Isles. This outward flow of goods can
be brought about only by lowering wages and
lowering prices on British goods and to do this
will bring about such an unrest as to make ills
flowing therefrom outweigh the ills flowing from
the levy on capital. The author states that the
levy on capital of SO per cent on war-made
wealth would get the sums needed but he be-
lieves to levy on war-made wealth, alone would
be unjust and hence he argues for a levy on aQ
capitiJ. He works out in some detail the proc-
ess by which this levy can be made.

Such are the tenets and such the main con-
clusions of the author. As to the power to shift
taxes they differ essentially in their general
concept of the marginal producer. The author
believes that the wage must now be sufficient
not only to keep up the race physically but also
to get for the working classes those standards of
comfort which organized economic and political
power can and will now obtain for wage earners.
His taxatbn plan would therefore exclude the


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Book Department


lower income levels in the four groups indicated
above from taxation entirely. He would limit
taxes primarily to graduated income taxes and
graduated inheritance taxes on those able to
bear taxes, as above defined.

We no doubt adopt philosophies to justify
what we want to do or have decided to do, not
as a means of ascertaining what we ought to do.
By working out the philosophy to justify the
tax system which England is apparently heading
toward, this book by Professor Hobson will be
of outstanding influence.

Cltde L. King.

Ketneb, John Matnard. The Economic Con-
sequences of the Peace, P. 298. New York,
Harcourt, Brace and Howe, 19^20.
This book has attracted world-wide attention
because of its analysis of Germany^s ability to
pay and because of its descriptions of the main
features and the main actors in the world's
greatest drama: the Peace Conference. Two
decisions made since the book was written bear
out the two main theses of the book which are
that the indemnities were in excess of Germany'^
ability to pay and that the indemnities should
be expressed in concrete terms. The indemnity
has recently been put at a fixed simi — a sum that
reduces the original reparations to 125,000,000
gold marks. The author's economic analysis
is significant.

Never before in the history of the world have
the forces of civilizatiop been thrust (for the
time) into the hands of four men. For this
reason the Peace Conference will be dramatized
over and over again;'and the Big Four will have
their motives and their ideals ever reexamined

and re4!xpresised in the light of later events.
It will be all too easy to forget the impelling
psychology of the hour which really wrote the
treaty. Would the treaty have been substan-
tially different had the personnel of the confer-
ence been other than it was? Was not the
strength of any individual all too weak to com-
bat the forces of revenge and the demand for
"satisfaction" that gave color to the views of
all in those days? Have even Americans yet
chorused a demand for revising the treaty
downward in its demands on Germany? Yet
the author's whole argument rests upon the
assumption that President Wilson could and
should have insisted on a mild treaty that meant
ten billions in indemnity in lieu of the forty
billions and more in the treaty. The book over-
emphasizes the relative power and importance of

Clyde L. Kino.
University of Pennsylvania,

Rbw, Sir Henbt, K.C.B. Food Suppliss in

Peace and War. P. 18S. New York,

Longmans, Green and Co., 1920.

This is a study of the food supply of Great

Britain before, during and after the war. It is

written in popular style and in this lies its real

value. Emphasis is placed upon the rising

living standards of agricultural labor in Great

Britain with the inevitable result that prices on

agricultural products must be higher relatively

in the future to meet this higher living standard.

The author expects food production in Europe

to come back to pre-war levels certainly by the

harvest of 1921.

Digitized by



Adkinb, Jesbe C. The Enforcement of a
Minimum Wage Law as a Form of Collective
Bargaining, 70*73.

Advertising, national, plan of, 104.

Alexander, Magnus W. Collective Bargain-
ing — Some Fimdamental Considerations,

American Sash and Door Company, Indus-
trial Principles Appued in the Shops of
THE. F. J. Moss, 10-12.

Applicants, judgment of, 130.

Arbitration, compulsory, opposition to, 74r-70.

Bean, B. C. Some Principles of Maximum

Production, 120-124.
Belgium, Labor Situation in. Ernest Ma-
' haim, 108-112.

Bloomfield, Meter. Discussion, 45-46.
Bonus system, 33.
Book Department, 172-173.
Business: fair principles of, 11 ; miracles in, 120;

private and public, 10.
man, function of, 128.

Capital: diaracter of, 39; cooperation between
labor and, 59; in industry, 84; labor and, 18;
labor unions and, 28; relations between labor
and, 102; returns to labor and, 10.

Capper, Arthur. Industrial Peace, 165-171.

Cheynet, E. p. The Trend Toward Industrial
Democracy, 1-9.

Civil service law, scope of, 152.

Civil Service, Promotion Needed to Give
Motive in. Herbert E. Morgan, 151-155.

Class, governing^ in England, 1-2.

Clothing industry: collective bargaining, 25;
labor representation in, 22-26.

Coercion vs. guarantees, 81.

Cohen, Julius Henrt. Collective Bargain-
ing and the Law as a Basis for Industrial
Reorganization, 47-49.

Collective bargaining: accomplishments of, 51;
benefits of, 58; in clothing industry, 25;
efficiency of, 67; employers' attitude toward,
63; in garment industry, 47; meaning of, 61;
necessity for, 56; plan of, 36; reasons for
adopting, 55; small employer and, 66.

Collective Bargaining, The Enforcement
OF A Minimum Wage Law as a Form of.
Jesse C. Adkins, 70-73.

Collective Bargainino — Some Fundamental

Considerations. Magnus W. Alexander,

Collective Bargaining and the Law as a

Basis for Industrial Reorganizatiok.

Julius Henry Cohen, 47-49.
CoLLBcnvs Bargaining in the Street Raii#-


A. A. Mitten, 57-60.
Collective Bargaining in the President's

First Industrial Conference. Charles

Edward RusseD, 68-69.
CoLLEcnvs Bargaining Assures Stabilitt.

John M. Tobin, 36-38.
Collective Bargaining in the Glass Bottle

Industry. John A. Voll, 50-56.
Compulsory arbitration, opposition to, 79.
Consumer, government coercion and the, 78.
Cooperative association, purposes of, 14-16.

movement, English, 6.

plan, 59.

Cornice, R. L. Why Labor Should Be Rep-
resented in Industrial Management, 32-35.
Cost of living, increasing, 143.
Covington, J. Harry. The Preservation of

Industrial Peace, 159-164.

Democratic Organization in the Leeds


Leeds, 13-17.
Discussion. Meyer Bloomfield, 45-46.

Economic aristocracy, effect of, 3.

democracy, 8.

Education, necessity for adult, 92.

Employe: cooperation between employer and,
97; obligations of, 162; relationship between
employer and, 103, 133, 160; representation*
41, 64, 106, 117; responsibility of, 43; voting
privileges of, 14.

Employe Reprbbentation as a Step Toward
Industrial Democracy. Walter Gordon
Mebitt, 39-44.

Employer: attitude toward collective bargain-
ing, 63; collective bargaining and small, 66;
cooperation between employe and, 97; labor's
attitude toward, 37; relation between em-
ploye and, 103, 133, 160; responsibility of , 140.

Employing group, satisfying of, 68.

mind, 69.


Digitized by




Employment methods, govenmient, 152.
Expense, overhead, 105.

Factories: advantages of, 43; disadvantages of,
43; employe representation in, 41 ; work in, 84.

Factory Acts, effect of, 5.

Fabquhar, a. B. Labor Conditions as Viewed
by a Manufactmer, 100-03.

Fatbtte R. Plumb Coiipakt Gets Produo-
TiON, How THE. John M. Williams, 104-07.

Felenb, Edward A. Foreign and Domestic
Obstacles to Maximum Production, 113-10.

Fitch, John A. Government Cordon in La-
bor Disputes, 74-82.

Foreman's part in industrial unrest, 20.

Foreword.- Carl Kelsey, v.

Gains, pursuit of, 128.

Garment industry, collective bargaining in, 47.

Glass Bottle Indxtbtrt, Collective Bargain-

mo IN the. John a. Voll, 50-56.
Goodtear Tire and Rubber Company, The

Industrial Representation Plan in the

Akron Factories of the. P. W. Litchfield,

Government coercion: consumers' demand for,

74, 78; legislation for, 75.
Govebnment Coercion in Labor Disputes.

John A. Fitch, 74-^2.

functions, 5.

offices, training for, 154.

Guarantees vs. coercion, 81.

Hours, shorter, 106.

Human Element in the Machine Procbbs,
The. Cornelia S. Parker, 88-03.

Incomes, fixed, plight of, 144.

Industrial: affairs, control of, 8; aftermath of
war, 150; arts, 89; assembly, powers of, 30;
code, necessity for, 08; conditions, English,
3; democracy, labor's part in, 39; democracy,
sdiemes of, 13, 19, 87; government, 28;
lead^ship vs. industrial driverMp, 21; legis-
lation and government, 49; organization, 13;
poliHcal democracy vs. industrial: problems,
difficulty of, 94; processes, control of, 128;
processes, direction of, 128; representation in
management, advantages of, 31; standards,
development of, 135; systems, 88; unionism,
8; unrest, foreman's part in, 20; unrest,
solution of, 38; unrest and management, 27.

iNDxreiRiAL Peace. Arthur Capper, 165-71.

Industrial Democract, The Trend Towards.
E. P. Ch^yney, 1-9.

Industrial Reorganization, Collective Bar-
gaining AND THE Law as a Basis for.
Julius Henry Cohen, 47-49.

Industrial Management, Why Labor Should
Be Represented in. R. L. Comick, 32-35.

Industrial Peace, The Preservation of. J.
Harry Covmgton, 159-64.

Industrial Representation Plan in the
Akron Factories of the Goodtear Tire
AND Rubber Company, The. P. W. Litch-
field, 27-81.

Industrial Unrest Caused by the Changing
Measure of Value. Henry Kimball Loud,

Industrial Democracy. Royal Meeker,

Industrial Democracy, Employe Represen-
tation AS A Step Toward. Walter Gordon
Merritt, 39-44.

Industrial Principles Applied in the Shops
OF THE American Sash and Door Company.
F. J. Moss, 10-12.

Industrial Conference, Collective Bar-
gaining IN THE President's First. Charles
Edward Russell, 68-69.

Industrial Stabilfty, Personnel Admin-
istration AS AN Aid to. Walter Dill Scott,

Industrial Stability and the President's
Second Industrial Conference. George
W. Wickersham, 131-137.

Industry: autocracy in, 126; capital, labor and
public in, 34; collective bargaining in, 47, 54;
creative impulse in, 86; democracy in, 32;
education in, 140; handicaps in, 91; human
element in, 90, 165; importance of ownership
in, 26; labor representation in, 22, 23, 35;
new conception of, 99; placements in, 139;
political government and, 48; private, and
public, 136; self-government in, 47; stability
in, 53, 126; union and organization in, 28.

clothing, collective bargaining in, 25.

street railway: morale of, 58; savings of,

Online LibraryJSTOR (Organization) American Academy of Political and Social ScienceAnnals of the American Academy of Political and Social Science → online text (page 58 of 59)