HB 
 
 .5 
 
 lit 
 
'»¥V»'W^ 
 
 mm^ 
 
 
 '^^^^".^5w^^ 
 
 m^^^&^mM^ 
 
 '^:l^' 
 
 ^^^^ji-^i-^ 
 
 ««ww^ 
 
 
 WWV'c 
 
 LIBRARY OF CONGRESS, 
 
 ChPop., , Copyright No.. 
 
 Shelf.HS.l 1 I 
 
 *^^^T ^^^^■ 
 
 UNITED STATES OF AMERICA. 
 
 ' 
 
 
 
 
 ' ',^l7WWv'V»^0'*^"^^' 
 
 /Vw^^: 
 
 ivvwy*'^ 
 
 vw'Wyli^: 
 
 V'iir,. ,v 
 
 ^C7w'^'>'ywvwyws^'' 
 
 w<ywwy 
 
 ,y;^^^^^* 
 
 ^j^i^yv./': 
 
 
 
wvw^wv 
 
 VVvVvV'^'^-'- 
 
 ^0i^mm^ 
 
 H^ 
 
 ,VyVVVv 
 
 ^^^y\v"' 
 
 
 
 
 vvw^*'''* 
 
 ^ww^^$^«^ 
 
 •.>^'v^iv.^i/'»Viy*^'*^^V*1fW^'\J 
 
 y^WwW^^'^*'*' 
 
 
 /V^VVff'^ 
 
 ^00mm 
 
 
 
 
 «»' " JvwVWvXV*V^W*'vv, 
 
 
 ^wv'v vy 
 
m 
 M 
 
 INSTITUTE 
 
 Bconomics 
 
 i 
 
 
 ^ anb (Li\>iC0 
 
 FOR 
 
 1fowa ZTeacbet^. 
 
 ^0 Qi- c'G^. 
 
 ^ fill* ...... •?5^f' 
 
 L. m PAKl;stiv 3?i; A. 
 
 UEpartniBiit of Falitical SgIeiicb, 
 
 IOWA STATE NORMAL SCHOOL. 
 
 •^ 
 
 ^^^^ 
 
■e@i|@ira])icf ^^4 C^lvic 
 
 FOR 
 
 l@wa TeaciberSo 
 
 4-: 
 
 Jh 
 
 r' 
 
 ^ 
 
 BY L. W. FARI5H, M. A. 
 
 HJEpartmBiit of Pnlitical SciencB; 
 
 IOWA STATE NORMAL SCHOOL 
 
 
 CEDAR FALLS, IOWA: 
 
 GAZETTE BOOK AND JOB POINTING HOUSE. 
 
Copyrighted 1896, 
 By Iv. W. parish. 
 
 
PREFACE. 
 
 f||WING to the sudden demand growing out of the unex- 
 ^ pected law requiring teachers to be examined in civics 
 and economics, this little book has been planned, 
 written, and printed in less than a month of time already- 
 pretty well monopolized with professional duties. 
 
 We shall therefore be grateful to have our attention 
 called to any errors which ma}^ have resulted from this 
 unavoidable haste. 
 
 The part on Economics is more elementary than any 
 primer before published on the subject and is still all or 
 more than can be mastered in a two-weeks Institute. 
 
 The Civics is mostly in outline, and, if taken in connec- 
 tion with the Civics furnished in the " Hand book for Iowa 
 Teachers" provided by the State Department, will give a 
 very good elementary idea of the governments of the United 
 States and Iowa. 
 
 Realizing the difficulties of the task I have set myself, 
 I offer ni}^ little book to the teachers of Iowa, asking for 
 criticism and suggestion, and yet hoping that it may in some 
 degree meet the needs of the rather trying emergenc}^ 
 
 I^. W. Parish. 
 Cedar Falls, Iowa, May 2^th, i8g6. 
 
BOOKS IN 
 
 POLITICAL ECONOMY and CIVICS 
 
 FOE 
 
 THE EVERY-DAY TEACHER. 
 
 Abbreuiations 
 
 for References . 
 
 W. Stanley Jevons' — Political Economy, pp. 134. J. 
 
 Science Primer Series, D. Appleton & Co., N. Y. 
 F. A.Walker's — Political Economy, Elementary Course, 
 
 pp. 312. Henry Holt, New York. W. 
 
 J. Laurence Laughlin's — Political Economy, pp. 358. L. 
 
 American Book Co., N. Y. 
 Robert Ellis Thompson's — Political Economy, pp. 108. T. 
 
 Ginn & Co., Boston, 
 Amasa Walker's — Science of Wealth. A. W. 
 
 J. B. Lippincott, Phila. 
 Chapin's First Principles of Political Economy, pp. 213. C. 
 
 Sheldon & Co., N. Y. 
 Andrews' — Manual of the Constitution. A. 
 
 American Book Co. 
 Chandler's —Iowa and the Nation. Flanagan. Chicago. Ch. 
 Macy's— Our Government. Ginn & Co., Boston. M. 
 
 Macy's— Iowa State Government M. I. 
 
 Ginn & Co., Boston. 
 McCleary's — Studies in Civics. American Book Co. Mc. 
 Hinsdale's — American Government. H. 
 
 Werner Publishing Co., Chicago. 
 Edward Alton's — Among the Law Makers. L. M. 
 
 Chas. Scribner & Sons, N. Y. 
 Hand-book for Iowa Teachers. H. I. T. 
 
 Provided by the State Department. 
 
 This last book contains all. that should be expected of the 
 Summer Institute. 
 
PART I 
 
 :(S@in)@ 
 
INSTITUTE ECONOMICS. 
 
 ANALYSIS OF 
 
 SUBJECT MATTER. 
 
 1. Preliminary Definitions. Economics. Wealth. Value. 
 
 Price.— Sections i-8. 
 
 2. Production and its agents. --Sec. 9-17. 
 
 3. Land. Nature and improvements of. Law of Dimin- 
 
 ishing Returns.— Sec. iS-22. 
 
 4. Labor. Varying efficiency of. Five causes. — Sec. 23-29. 
 
 5. Division of Labor. Advantages. Hopefulness, and Effi- 
 
 ciency of Labor.— Sec. 30-37. 
 
 6. Capital. Forms of Capital. Fixed and Circulating 
 
 Capital.— Sec. 38-46. 
 
 7. Distribution. Sharers in Distribution. Strikes. Labor 
 
 Unions. Lockouts. — Sec. 47-63. 
 
 8. Taxes. Direct and Indirect. Duties and Excise, Free 
 
 Trade and Protection. Direct Taxation and the U. S. 
 Constitution. Advantages of Indirect Taxation. 
 —Sec. 64-81. 
 
 9. Exchange. Instruments of Exchange. Barter. 
 
 Money. Credit. — Sec. 82-91. 
 10. Bi-metallism and Mono-metallism. Gresham's Law. 
 Legal Tender. Coinage Laws of U. S. Currency 
 of TJ. S. Consumption. — Sec. 91-10Q. 
 
TABLE OF CONTENTS BY SECTIONS. 
 
 1. Economics defined. 
 
 2. Wealth defined. 
 
 3. Value defined, 
 
 4. Three essentials of wealth. 
 
 5. What determines value. 
 
 6. Ordinary and economic use of words. 
 
 7. Price defined. 
 
 8. Four departments of Political Economy. 
 
 PRODUCTION. 
 
 9. Production defined. 
 
 10. Brief definition. 
 
 11. Three direct agents of production. 
 
 12. The guardianship of government an indirect agent. 
 
 13. A fourth agent of production. 
 
 14. The three direct agents of production essential. 
 1.5. Land defined. 
 
 16. Labor defined. 
 
 17. Capital defined. 
 
 LAND. 
 
 18. Land comprises only unimproved natural resources. 
 
 19. Improvements on land are capital. 
 
 20. Value of land varies in productiveness. 
 
 21. The same land frequently yields more products for greater 
 
 application of labor and capital. 
 
 22. But there is a limitto this. Law of Diminishing Returns. 
 
 LABOR. 
 
 23. Labor varies in efficiency. > 
 
 24. Five causes of this variation. 
 
 25. The influence of Heredity on the efficiency of labor, 
 
 26. '• Food " " 
 
 27. " Sanitary Conditions on " " 
 38. *' Intelligence " . '' 
 
INSTITUTE KOONOMiCS. 
 
 29. Intelligeijce insures wise application of labor in 1. Time. 
 
 2. Place. 
 3 Manner 
 
 30. Division of Labor defined. 
 
 31. Simple illustration. 
 
 32. More elaborate illustration. 
 
 33. The disadvantage of the old methods. 
 
 34. The advantages of division of labor. 
 
 35. The disadvantages. 
 
 36. Influence of Bopefulness on the efficiency of labor. 
 
 37. Labor of two kinds, Mental and Physical. 
 
 CAPITAL. 
 
 38. The law of capital. 
 
 39. Three forms of capital. 
 
 40. All capital represented by subsistence. 
 4L Two kinds of capital. 
 
 42. Fixed capital defined. 
 
 43. Circulating capital defined. 
 
 44. The discrimination important. 
 
 45. Principle involved. 
 
 46. Result of the violation of this principle. 
 
 DISTRIBUTION. 
 
 47. Distribution — definition. 
 
 48. Sharers in distribution. 
 
 49. Agents, sharers, and portions in distribution. 
 
 50. Why the land -owner is a sharer, etc. 
 
 51. '• " laborer " " " 
 
 52. " " capitalist " " " 
 
 53. " " government '.' " " 
 
 54. Portions. How large? General law. 
 
 55. Confusion of the terms rent and interest. 
 
 56. Long quarrel between labor and capital. 
 
 57. Strikes defined. 
 
 58. Some evils of strikes. 
 
 59. Lock-outs defined. 
 
 60. References on trades unions, etc. 
 
 61. Vital importance of the subject. 
 
 62. Productive co-operatioQ. 
 
Institute KcrmoMicg. 
 
 63. References for further study of this subject. 
 Taxes. 
 
 64. 'Kinds of taxes — Tabular statement, 
 
 65. Direct taxes defined. 
 
 66. Poll tax " 
 
 67. Personal property tax defined. 
 
 68. Ileal estate tax defined. 
 
 69. Indirect taxes " 
 
 70. Duties defined. 
 
 71. Two kinds of duties defined. 
 
 72. Excise defined. 
 
 73. Tariff defined. 
 
 74. Tariff for revenue only. Free trade. 
 
 75. Tariff to encourag-e home industries. Protection. 
 
 76. Argument for protection. 
 
 77. " " free trade. 
 
 78. Direct taxation. Constitutional limitation. 
 
 79. The income tax. Recent decision of courts. 
 
 80. Advantag-es of indirect taxation. 
 
 81. Dangers of " " 
 
 82. Definition of exchange. 
 
 83. Three instruments of exchange. 
 
 84. Barter. 
 
 85. The difficulties of barter. 
 
 86. Money. Need of, and three functions of, 
 
 87. Early forms of money. 
 
 88. Essential characteristics of g-ood money. 
 
 89. Credit. Definition. 
 
 90. Two kinds of credit. 
 
 91. Metal money and paper money. 
 
 92. Bi-metallism and mono-metallism. 
 
 93. Claim of the mono-metallists. 
 
 94. Gresham's law. 
 
 95. Lt^.g-al tender defined. 
 
 96. Table of U. S. coinage laws. 
 
 97. Statement of U. S. Currency of to-day. 
 
 98. National Bank Notes. 
 
 99. References for study of money. 
 100. Consumption. Three kinds. 
 
10 INSTITUTE ECONOMICS. 
 
 INSTITUTE ECONOMICS. 
 
 1. Economics or Political Economy is the science of 
 
 wealth. 
 
 2. Wealth is anything that has value. 
 
 3. Value is briefly defined as power in exchange (W.p.5), 
 
 also as purchasing power (L. p. 57). 
 
 4. Wealth has three essential characteristics, viz: 
 
 I. Utility. 
 • 2. Difficulty of attainment. 
 3. Transferability. 
 
 EXKRCISE. 
 Is wheat wealth? 
 
 Does it lack any of the three essentials of wealth? 
 Is health wealth? 
 
 Does it lack any essential quality of wealth? 
 Which of the following things are wealth and which 
 are not? 
 Give reasons for your decisions. 
 
 Air Coal 
 
 Water Beauty 
 
 Snow Education 
 
 A toy sled 
 
 An ocean steamer 
 
 A pleasure yacht 
 
 Fish in the sea 
 
 Pish in the markets 
 
 Gold in the pocket of a ship wrecked sailor in a 
 deserted island 
 
 Gold in an undiscovered mine 
 
 A thought Time Physical Strength. 
 
NOTES. 11 
 
12 INSTITUTE ECONOMIC^ 
 
 The value of aa article depends on the 
 
 1, Demand and 
 
 2. Supply. 
 
 Other things being equal, the greater the demand for 
 an article, the greater is its value, or purchasing 
 pov/er. 
 
 On the other hand, with the same demand, the value 
 of an article decreases as the supply increases. 
 
 EXERCISE. 
 
 If the supply and demand are both doubled, what is 
 
 the effect on the value of any article? 
 Is everything that is useful, valuable in the economic 
 
 sense of the word? 
 Give examples. 
 
 If a thing is very hurtful, may it have economic value? 
 Give example and explain. 
 We must then distinguish between the economic and 
 
 the ordinary use of such words as value, utility, &c. 
 Price is value measured in money or it is money value. 
 
 L. p. 63, W. p. loi, J. p. 98. 
 Political Economy is usually discussed under four 
 
 heads or departments, viz: 
 
 1. Production 
 
 2. Distribution 
 
 3. Kxchange 
 
 4. Consumption 
 
 PRODUCTION. 
 
 Production is any act or process by which the value of 
 any article is increased, or by which an article form- 
 erly valueless comes to have value. W. p. 17. 
 
NOTES. 13 
 
14 INSTITUTE ECONOMICS. 
 
 10. Production may be briefly, and less carefully defined as 
 
 the creation of value. W. p. 17. 
 
 11. The three direct agents or requisites of production are: 
 
 1. Land 
 
 2. Labor 
 
 3. Capital. 
 
 12. The guardianship of Oovernment, which facilitates 
 
 production rnay be called an indirect agent or re- 
 quisite. J Chap. XVI. 
 
 13. Note, — Business ability, which appears in the manage- 
 
 ment of a great business concern is named by some 
 authorities as a fourth agent of production (W. 5S-59) 
 but by many of the best writers is classed simply as a 
 high grade of intellectual labor. (^37) L. Uhap. XX. 
 
 14. No act of production is possible without involving 
 
 land, labor and capital. W. p. 20, L- p. 13, J- p- 24. 
 
 15. Land (in an economic sense) comprises all natural re- 
 
 sources, (L. p. 13) all natural agents of which use is 
 made in the production of wealth. (W. p. 22 and J. p. 
 26) Examples, the soil of a farm, before it is worked, 
 the water from a stream usable as water-power, the 
 moving air useful to turn windmills. 
 
 16. Labor comprises all human efforts and sacrifices volun- 
 
 tarily directed toward the production of wealth, 
 
 EXKRCiSK. 
 
 {a) Is the work of oxen and horses (economic) labor? 
 
 Kxplain. 
 {U) Is the effort put forth by a slave in the cotton 
 
 field labor? 
 (r) Is the work of an oarsman in the regatta labor? 
 {d) Is the work of a professional ball-player labor? 
 
 W. p. 34. 
 
NOTES. 15 
 
16 INSTITUTE ECONOMICS. 
 
 17. Capital comprises all the products of previous labor 
 devoted to the production of wealth; or capital is that 
 part of wealth which is devoted to the production of 
 more wealth. W. p. 60, L. p. 38, J. p. 43 
 
 EXERCISE. 
 
 Are native trees land or capital? 
 
 Are the orange- groves of Florida land or capital? Ex- 
 plain. 
 
 Was the guano of the Guano Islands, before discovery, 
 land or capital? 
 
 Is the guano taken from these islands and brought to 
 the New York market land or capital? Explain. 
 
 I.AND. 
 
 18. lyand, in an economic sense (§ 15), comprises only the 
 
 natural resources. The soil, in its natural condition, 
 is land; as it receives improvements caused by labor, 
 it becomes capital. 
 
 19. Fences, manures and cultivation are improvements on 
 
 land which must be counted as capital. 
 
 20. Value of land vi'ries with its producuig power. Richer 
 
 laud brings better returns when the same labor and 
 capital are applied. This should be borne in mind, 
 as it lies at the foundation of several important ques- 
 tions. 
 
 21. The same land often yields more products for greater 
 
 application of labor and capital. 
 Thus one man with one team and set of farming im- 
 plements can produce in a season crops that will pay 
 him, say. $400. On that same farm, four men with 
 two teams and sets of implements may produce crops 
 bringing them as high as |6oq apiece. 
 
NOTES. 17 
 
IS INSTITUTE ECONOMICS. 
 
 22. It does not, however, follow that ten men with five sets 
 
 of implements can make I900 apiece. A point is 
 sure to be reached in the cidtivation of afield zvheie the 
 pi'oportioiial returns of labor ayid capital begin to fall 
 off. This is called the Law of Diminishing Returns. 
 
 The law is of great importance in connection with the 
 increase of population and may well bear further 
 study. 
 
 Read W. Chap. V. 
 I.. " III. 
 
 For another view of the I^aw of Diminishing Returns 
 read Patton's Premises of Political Economy— Chap. 
 VI. Pub, by J. B. Lippincott, Phila. pp. 244. 
 
 LABOR. 
 
 23. The value and efficiency of labor varj^ with the indi- 
 
 vidual. 
 
 24. The causes of difference in efficiency of labor are five, 
 
 viz; 
 
 1 . Heredity ") 
 
 2. Food [- Physical 
 
 3. Sanitary Conditions ) 
 
 4. Intelligence Mental 
 
 5. Hopefulness Moral 
 
 25. Heredity affects the efficiency of labor. The Anglo- 
 
 Saxon race have in their inherited strength a great 
 advantage over the Bengalee or the Chinaman. 
 
 26. The quality of food affects the efficiency of labor. Well- 
 
 fed races are better workers than ill- fed races. A 
 half- starved man cannot do half as much work as one 
 who has plenty of nourishing food. 
 This fact has an important bearing on the folly of re- 
 ducing wages until the workmen cannot buy good 
 food for themselves and their families. 
 
NOTES. 29 
 
20 INSTITUTE ECONOMICS. 
 
 27. Sanitary conditions affect the efficiency of labor. Bad 
 
 ventilation, uncleanly back yards, filthy gutters, and 
 decaying vegetation seriously affect the health and 
 consequently the efficiency of laborers. 
 
 In connection with this fact, consider the wisdom of 
 those employers who furnish comfortable cottages for 
 their workmen, and the folly of those who think it no 
 concern of theirs how miserably unhealthy the homes 
 of their employees may be. 
 
 Both classes of employers pay practically the same 
 wages, but the former get vigorous energetic work, 
 while the latter only get weary efforts to overcome 
 the debility of malaria. 
 
 28. Intelligence makes labor efficient on general principles. 
 An ignorant workman is stolid and unable to perceive 
 
 that some little change in his method of work will 
 bring better results. 
 People often expend a great deal of energy trying to 
 lower a window because they do not understand the 
 laws of physics well enough to grasp the sash in the 
 middle. 
 
 29. Intelligence insures the wise application of labor in 
 
 1 . Time 
 
 2. Place 
 
 3. Manner. 
 
 An intelligent farmer studies the signs of the weather 
 in the harvest season, the fitness of the soil for the 
 growth of various crops, and the most approved 
 methods of draining and manuring his fields. He 
 also plans the distribution of work among his men. 
 3kill in this line has produced great results and de- 
 
NOTES. 
 
 21 
 
22 INSTITUTE ECONOMICS. 
 
 serves a special cousideratiou under the head of Divi- 
 sion of Labor. 
 
 30. Division of Labor is the giving to each of a group of 
 
 workmen some particular part of work, and letting 
 him give his whole time and strength to that, 
 
 31. When two sisters agree that one shall wash the dishes 
 
 while the other wipes them, they are utilizing the 
 principle of Division of Labor, and getting their 
 work done more quickly and better than they could 
 without such a plan. 
 Think of a number of simple examples of Division of 
 Labor. 
 
 32. In a Bicycle Manufactory the making of the machine 
 
 is divided into hundreds of separate processes, and 
 each is assigned to a different man or group of men. 
 
 In a lock-shop may be seen long benches of men, each 
 doing a different kind of work, each taking the partly 
 finished lock from the man next to him, doing some 
 little work upon it and passing it to his neighbor to 
 do the next thing needed. These are examples of a 
 higher class of Division of Labor. 
 
 Think of several other examples of this kind. 
 
 33. It is hardly necessary to dwell on the disadvantages of 
 
 the old methods of work when each man had to make 
 for himself everything which he needed; when the 
 sheep were bred and raised, the wool shorn from 
 their backs, carded and spun into yarn, woven into 
 cloth and finally made into clothes all on the same 
 farm and by the same family. 
 
 34. On the other hand the advantages of Division of Labor 
 
 are numerous. We would call attention to five of 
 tl-ie most important, viz? 
 
NOTES. 28 
 
24 INSTITUTE ECONOMICS. 
 
 The Development of Dexterity 
 
 2. Saving of Time in Apprenticeship 
 
 3. " " "in Changing Work 
 
 4. Encouragement of Inventions 
 
 5. Adaptation of Labor to Individual Fitness. 
 
 (i) If a person gives his v/hole attention and prac- 
 tice to one line of work, he will of course develop 
 greater speed and skill in that work. This means 
 the highest economy of labor, both quantity and 
 quality of results being enhanced. 
 
 (2) Of course an apprentice can learn his trade in a 
 far shorter time where the trade is thus simplified 
 by division of labor. 
 
 (3) Anyone who has worked at a carpenter's bench 
 knows that much time is lost in changing from one 
 
 ' tool to another, and this loss is largely saved by 
 division of labor. 
 
 (4) When a man confines his attention to a single 
 branch of labor, he is apt to find some new way of 
 doing the work better than the old way, or to in- 
 vent some machine that will do more and better 
 work than could be done before. 
 
 (5) By division of labor, many light and easy jobs 
 are provided for those physically unable to do 
 heavier work. This gives employment to a larger 
 portion of the otherwise idle classes. Think of 
 some illustrations of this. 
 
 35. The disadvantages of Division of Labor may be sug- 
 gested under two heads: 
 
 I. It makes men narrow and inefficient in any 
 work other than that in which they were employed. 
 
NOTES. 
 
 25 
 
26 INSTITUTE ECONOMICS. 
 
 2. Under division of labor, trades become compli- 
 cated and when deranged the results are ruinous 
 to some people. J. p. 41. 
 The two points are closely related but are really differ- 
 ent. Think of illustrations of each. 
 
 36. The fifth element influencing the efficiency of libor is 
 
 Hopefulness. 
 
 "We all know how much more zest we put into our 
 work when we see a good prospect of success. 
 Boys realize what uphill work it is playing ball 
 against a nine much stronger than their own. 
 
 Another illustration is the depressing influence of slav- 
 ery on the working power of the colored people. The 
 hope of earning their freedom encouraged many slaves 
 to buy their time of their masters and yet save 
 enough to buy their liberty. 
 
 A wise employer will pay his men enough to make 
 them willing, cheerful workers. 
 
 37. It should be remembered that labor may be mental as 
 
 well as physical. ly. p. 26 
 
 CAPITAL. 
 
 38. Capital (defined in § 17) is always the result of abstin- 
 
 ence. It is saved wealth. This is the law of capital, 
 J. p. 45, W. p. 64, Iv. p. 38. 
 
 39. Capital exists in three forms: 
 
 a. Subsistence, comprising 
 
 
 I, 
 
 i^ood 
 
 
 2. 
 
 Fire 
 
 
 3- 
 
 Clothing 
 
 
 4- 
 
 Shelter 
 
 
 Tools 
 
 Materials, 
 
 
NOTES. 27 
 
28 INSTITUTE ECONOMICS. 
 
 KXBRCISB. 
 
 Is land (ill an economic sense) wealth? i. e. does it have 
 value before labor is applied to it? 
 
 N. B, Test it by the three essentials of wealth. 
 
 What is the fundamental requisite of production? 
 
 Upon what originally must labor be expended, in order 
 to produce wealth? 
 
 Can you think of any exception to this? 
 
 Can labor be utilized without any aid from capital? 
 
 Show that each form of capital is the product of land, 
 labor and previously acquired capital. 
 
 Show that, as capital, tools may be represented by sub- 
 sistence, and materials (land wrought into capital) 
 may be represented by tools and so by subsistence. 
 
 40. Hence all capital may be represented by subsistence. 
 
 W. p. 67. 
 
 41. There are two kinds of capital: 
 
 Fixed and 
 Circulating. 
 This distinction is not always easily made (W. p. 68) 
 but in general, 
 
 42. Fixed capital is the kind which exists in durable shape, 
 
 and the returns from whose production extend over 
 considerable time. See W. p. 68. 
 It consists of factories, machines, tools, ships, docks, 
 railwaj^s, &c. J. p. 43. 
 
 43. Circulating capital is the kind which fulfills the whole 
 
 of its office by a single use. 
 It comprises clothes, fuel, food, &c. See W. p. 66. 
 
 44. Although a perfect discrimination between fixed and 
 
 circulating capital is at times impossible, the terms 
 
NOTES. 29 
 
30 
 
 INSTITUTE ECONOMICS. 
 
 being relatively used; nevertheless their f^tudy is im- 
 portant for it involves a principle, viz: 
 45. The safety and prosperity of commerce demand that 
 too much of existing wealth be not turned into fixed 
 capital, lest there be not sufficient circulating capital 
 to give employment to the fixed capital. 
 A violation of this principle frequently results in finan- 
 cial crises. 
 
 EXERCISE. 
 
 Show that this is true in the booming of new towns, in 
 the building of railroads, &c. 
 
 46 
 
 DISTRIBUTION. 
 
 47, In economics, Distribution is the division of wealth 
 
 among those who have had a share in producing it. 
 
 See W. p. loi. 
 
 48, We know by § 11 that the agents of production are 
 
 land, labor and capital. Those who furnish these 
 three agents and the government which, by its pro- 
 tection, enables us to produce and own wealth, should 
 then share in its distribution. A. W. p, 408. 
 
 49, Study then this scheme of 
 
 Production and Distribution. 
 
 PRODUCTION AND DISTRIBUTION. 
 
 AGENTS. 
 
 SHARER. 
 
 PORTION. 
 
 Laud 
 Labor 
 Capital 
 Guard t.inship 
 
 Land- Owner 
 Laborer 
 Capitalist 
 Government 
 
 Rent 
 Wages 
 Interest 
 Taxes. 
 
NOTES. 31 
 
32 INSTITUTE ECONOMICS. 
 
 50. (i) The Land-owner is paid for the use of Land (na- 
 
 tural agent) in its natural state, and his portion of 
 the product is called rent. 
 
 51. (2) The laborer is paid for the effort or labor he exerts, 
 
 and his portion is called wages. The pay of the day 
 laborer for manual toil, the salary of the lady teacher 
 and the fees of the lawyer for mental labor, are all 
 wages in an economic sense. 
 
 52. The Capitalist is paid for the use of his capital, if it has 
 
 shared in producing wealth. 
 For instance the day laborer who furnishes his team is 
 paid $3.00 per diem, while another laborer is paid 
 $1.50 for the days work. 
 The first laborer receives 
 
 wages $1.50 and interest on team $1.50 or $3.00 
 The second laborer receives only wages - - $1.50 
 
 53. The government collects taxes to pay for the protection, 
 
 without which production of wealth would be inter- 
 rupted and endangered by robbery, J. p. 49. 
 
 54. The question of how large a portion each sharer ought 
 
 to receive is a difficult one, but in general it may be 
 said, that the value of each agent in production, and 
 therefore the share or portion in distribution is deter- 
 mined by the law of supply and demand. 
 Exceptions to this rule, whether real or apparent, must 
 be left to more advanced study, readings for which 
 will be indicated under the various headings. 
 
 55. Confusion of the terms rent and interest must be 
 
 avoided. What we ordinarily call rent, paid for the 
 use of a block of buildings, is, economically ^iiite? est on 
 the capital invested in improvements, viz: the 
 
NOTES. 33 
 
34 INSTITUTE ECONOMICS. 
 
 buildings erected on the land. Give other illustra- 
 tions of possible confusion. 
 
 56. There is much dispute concerning the fair distribution 
 
 of wealth, and laborers and capitalists have had many 
 and even bloody quarrels over the question. 
 The capitalists have been accused of combining to keep 
 down the wages of the laborer, and until 1825 the 
 laws of England forbade the combination of laborers 
 to secure better wages. Since these laws were re- 
 pealed, such combinations of laborers, called Trades 
 Unions, have kept up a more or less successful con- 
 test against capitalists, usually through the means of 
 strikes. 
 
 57. A strike is a concerted action whereby large bodies of 
 
 workmen quit work at the same time, frequently when 
 it is very bad for employers to have the work stop. 
 
 58. Such strikes are legitimate enough, but when the strik- 
 
 ing men use violence to prevent others from doing 
 the work which they have refused to do, they are 
 going beyond all reason, and always lose the sympa- 
 and support of outsiders. 
 
 59. lyock-outs are the capitalists' way of striking. A lock- 
 
 out consists in locking the doors of the factory and 
 announcing that work will be discontinued till the 
 laborers accept the terms offered by the employers. 
 
 60. Those who wish to study the question of wages and 
 
 trades- unions, will do well to read the following refer- 
 ences: J. Chapter VI VIII. 
 W. " XXIII-XXV. 
 L. " XVIII-XX, 
 T. '' IVandXIL 
 C. pp. 67-1170 
 
NOTES. 35 
 
36 INSTITUTE ECONOMICS. 
 
 6i. This question of Labor and Capital is one of the vital 
 questions of the day and all teachers should try to 
 keep themselves well informed on the subject. 
 
 62. Two ways of settling this vexed question have been 
 
 tried with varying success, viz: 
 
 1. Productive or Industrial Co-operation and 
 
 2. Profit-sharing. 
 
 The first is a plan by which the workmen dispense 
 with an employer, invest their ovvn capital, carry on 
 the business and divide the profits proportionally. 
 
 This plan seldom succeeds, ignorance, lack of experi- 
 ence in managing large business concerns, and a con- 
 stant tendency to disagreement soon bringing ruin 
 upon the enterprise in the majority of cases. 
 
 Profit-sharing, which is a plan to interest workmen by 
 paying them a share ot the employer's profits, adds 
 the elements of hopefulness and good will, and often 
 works admirably for both parties. 
 
 63. For further study of this important subject read: 
 
 W. Chap. XXI. 
 
 ^' pp. 353-378. 
 C. pp. 115. 116. 
 J. Chap. IX. 
 
 64. Taxes are of various kinds as is shown by the follow- 
 
 ing table 
 
 Taxes — i. Direct 
 
 (a) Poll 
 
 (d) Personal Property 
 (r) Real Estate 
 Indirect 
 
 (a) Duties 
 
 a. Ad Valorem 
 I). Specific 
 
 (b) Excise. 
 
NOTES. 37 
 
38 INSTITUTE ECONOMICS. 
 
 65. Direct taxes are those which are laid on the parties who 
 
 are intended to bear the sacrifice. J. p. 127. 
 Such are taxes on land or inheritances, and on in- 
 comes. T. p. 63. 
 
 66. A Poll Tax is laid upon the individual as such without 
 
 regard to his wealth or poverty. It is considered by 
 many a very unjust kind of tax. 
 
 67. A Personal Property Tax is one laid on the movable or 
 
 personal property. 
 Taxes on money, notes, mortgages, stocks, bonds, car- 
 riages, watches, &c., are examples of this kind of 
 tax. 
 
 68. A Real Estate Tax is a tax laid on real estate, i. e. on 
 
 land, houses, &c. 
 
 69. Indirect taxes are those laid upon parties who expect to 
 
 get the tax back again from others by raising the 
 price of the articles taxed. Such taxes are really 
 paid by the consumer. A merchant pays an indi- 
 rect tax (a duty) on silk imported from Europe, but 
 it is finally paid by the lady who buys the silk for 
 a dress. J. p. 127. T. p. 63. 
 
 70. Duties or customs are taxes laid on goods imported 
 
 from foreign lands. 
 
 71. Duties are of two kinds 
 
 Ad Valorem— where the tax is at a certain rate on the 
 
 value of the article 
 Specific — where a fixed amount is charged for a given 
 
 quantity, as so much a yard, or pound. 
 
 72. Excise is a tax laid on business or manufactures produced 
 
 within the country — Excise (or Internal Revenue 
 Tax) is usually laid on hurtful luxuries, such as 
 whisk5^ tobacco, etc. 
 
NOTES. 39 
 
40 INSTITUTE ECONOMICS. 
 
 73. Tariff is a schedule of duties levied by an act of Con- 
 
 gress on goods brought into the country from abroad, 
 i. e., on imports. 
 Tarifa was the name of a town at the narrowest part of 
 the straight of Gibraltar, where the Moors stopped 
 all passing vessels and compelled the payment of 
 such duties as were imposed by the lords of the place. 
 The modern word "tariff," is supposed to be de- 
 rived from the name of this town. 
 
 74. Tariff is sometimes imposed only to raise money needed 
 
 for the support of the government. This is called 
 tariff tor revenue only, and is a plan of taxation ad- 
 vanced by those who favor Free Trade. 
 Absolute Free Trade, where no duties are imposed 
 either on imports or exports, is advocated by few, 
 
 75. Tariff as a means of protecting home industries from 
 
 competition with foreign producers, is called Protec- 
 tion. 
 
 76. The usual arguments in favor of Protection may be 
 
 stated as follows; 
 
 I. The Variety of Industries. 
 
 It is well for the independence and prosperity of any 
 nation, especially in case of war, to have a large 
 variety of industries flourishing within its own 
 borders. 
 
 It becomes self-reliant and more and more in- 
 fluential among nations under these circum- 
 stances. 
 
 II. This variety of industries affords fields of 
 labor for a larger proportion of its population, 
 employing the weak as well as the strong. 
 
 III. New industries would often be established 
 
NOTES. 41 
 
42 INSTITUTE ECONOMICS. 
 
 and become prosperous, if they were, at the 
 outstart, protected from the competition of well 
 established producers in other and older coun- 
 tries. 
 
 John Stewart Mill, one of the world's greatest 
 scholars and himself a free-trader, said: "The 
 superiority of one country over another in a 
 branch of industry often a^^ises only from its hav- 
 mg- begun sooyier^ He also said at another 
 time: "I do not say that if I were an Ameri. 
 can, I should not be a Protectionist." 
 
 IV. History proves that Protection has been a 
 good thing. The poverty stricken farmers of 
 Maine became prosperous as manufacturers and 
 producers under Protection. And even in Eng- 
 land, "the three greatest industries owe their 
 existence to Protection." 
 
 This is also true in every great European industry 
 which is now fighting for the world's markets. 
 
 T. p. 96-97. 
 
 The period in U. S, history, during which the 
 theory of Protection has been enforced by the 
 government, has been full of prosperity and 
 growth in trade and commerce. 
 77. Some of the arguments for free trade are as follows: 
 
 I. Protection puts an artificial price on commod- 
 ities, violates the natural right to buy where one 
 can buy the cheapest, and favors the producer 
 at the expense of the consumer. 
 
 II. Protection fosters monopolies, the protection 
 not being removed after the industries are old 
 and well established. 
 
NOTES. 43 
 
 I 
 
4i INSTITUTE ECONOMICS. 
 
 III. Free trade fosters self-reliance and produces 
 healthy growth of Industries. 
 
 IV. Protection encourages unwise attempts to 
 start industries that are not suited to the people 
 or climate. 
 
 There are many arguments on either side but 
 our limits prevent further discussion. 
 
 Students desiring to investigate further, should 
 read both sides of the question. There is a good 
 discussion of the subject in the International 
 Cyclopaedia under the article Tariff. 
 
 Read also T. Chap. XL, W. Chap. XVI and 
 .XXVI., L. Chap. XXVI. 
 
 78. Direct taxation is the ordinary method of raising revenue 
 
 for the state and local expenses, but direct taxation 
 by the federal government has always been feared, 
 and the Constitution of the U. S. requires that direct 
 taxes shall be distributed among the states according 
 to population. That is, if the federal government 
 wished to raise 1357,000,00c by direct taxation, 
 Iowa's share will be f 11,000,000, vSince Iowa's rep- 
 resentatives (appointed according to population) 
 comprise 1 1 out of 357 of members of the lower 
 house of Congress. 
 
 79. The Income Tax, consisting of two percent on all in- 
 
 comes exceeding $4,000, was a very unsuccess- 
 ful attempt to force the wealthy to do their .share in 
 the support of the government, and was lately declared 
 unconstitutional — being a direct tax and not appor- 
 tioned among the states according to population. 
 Read T. p. 70, also Current History Vol. 4 p. 537, and 
 Vol. 5 pp. 272-283. 
 
NOTES. 45 
 
46 INSTITUTE ECONOMICS. 
 
 80. The advantages of indirect taxation lie in the fact that, 
 
 if the taxes are laid, as in the internal revenue tax, 
 on whisky, tobacco and other hurtful or needless 
 luxuries, burdensome taxation may be avoided by the 
 poor, simply by denying themselves these luxuries, 
 and the expenses of the government will be borne by 
 the wealthy classes who, under direct taxation, 
 always pay less than their proportion. 
 
 The indirect tax is always less objected to by the peo- 
 ple, because they pay it in purchasing the things 
 they wish, and do not realize that they are paying 
 taxes. 
 
 If the half billion dollars, needed each year by the fed- 
 eral government, were collected by direct tax we 
 should have an insurrection as wide-spread as our 
 territory. 
 
 81 . The dangers of indirect taxation lie in this same fact, 
 
 for the legislative body is tempted to lay a tax on the 
 people larger and less wisely distributed than if the 
 people realized how heavily the}^ were being taxed. 
 Read L. Chap. XXIV., J. Chap. XVI. 
 
 EXCHANGE. 
 
 82. Mr. Jevons describes Exchange as "giving what we do 
 
 not want in return for what we do want." 
 In still briefer form we may speak of exchange as 
 "trade," 
 
 83. There are three instruments of exchange 
 
 1 . Barter 
 
 2. Money 
 
 3. Credit. 
 
 34. Barter is the simple exchange of one comniodity for 
 
NOTES. 
 
48 INSTITUTE ECONOMICS. 
 
 another. When boys swap a jack-knife for a bow- 
 and-arrow, when Indians trade furs for lifles, they 
 afford examples of Barter. 
 
 85. It will easily be seen that Barter is full of difficulties 
 (a) If the lndia.n j^ossesses inrs and wants 3. rifle, he 
 
 must find some one who possesses a rifle and ivants 
 furs, or he cannot make the trade. Dozens of people 
 may possess the rifle but not want the furs, or want 
 the furs without possessing the rifle. The wants and 
 possessions must coincide. This doitble coincidence of 
 wants and possessions is one of the chief difficulties of 
 barter. 
 
 {h^ Again comes the difficulty of making cha7ige. If 
 two knives are worth one bow- and- arrow, and I wish 
 only one knife, how shall we make the change? 
 
 if) Still again, we know that two knives are worth 
 one bow- and- arrow, three knives are worth two 
 blankets, and seven blankets are worth one gun. I 
 am skilled in making bows and arrows, and I want a 
 gun; how shall I know the value of a gun in bows 
 and arrows? It is like comparing the fractions |, -J 
 and f when we have to reduce to a common denom- 
 inator. So in the trade we have to solve a rather 
 troublesome problem. If people would only express 
 the value of blankets, guns, knives, etc., in one thing 
 (a common denominator of values) say in bow and 
 arrows, all would be well. 
 
 86. The need of something to provide for 
 
 1 . The double coincidence of wants and possessions 
 
 2. The awkwardness of making change 
 
 3. The common denominator of values 
 
 gave rise to the early experiments in what 
 
NOTES. 49 
 
50 INSTITUTE ECONOMICS. 
 
 has been called the medium of exchange and the 
 measure of values, viz: money. 
 
 87. In early stages of trade, many different substances were 
 
 used as money, viz: wheat, oxen, tobacco, wampum, 
 cubes of pressed tea, &c. Metals weie early used, 
 and of late years gold and silver have been univers- 
 ally used for money. 
 
 88. Some of the essential characters of money are: 
 
 1. Market value 
 
 2. Indestructibility 
 
 3. Divisiblity 
 
 4. Steadiness of value. 
 
 EXERCISE. 
 
 Which one of these characteristics is lacking in wheat, 
 
 cubes of tea, tobacco, oxen, rice, wampum, paper 
 
 money. 
 Think of other things that have been used as money 
 
 and test them by the tXiv^Q functions of money (§86) 
 
 or the four essentials of money (§88). 
 89-. The third instrument of exchange is credit. 
 
 Credit is an indirect means of exchange which has no 
 
 value in itself but has to be redeemed. 
 All the value of credit depends on ihe probability of its 
 
 redemption. 
 This is an important truth and should not be forgotten. 
 90. There are two forms of credit 
 
 1. Book-accounts 
 
 2. Credit paper. 
 
 Every one is familiar with Book -accounts, i.e., accounts 
 
 with the grocer, the butcher, the bookstore, etc. 
 
 Qredit paper includes all kinds of written agreements tQ 
 
NOTES. 51 
 
52 INSTITUTE ECONOMICS. 
 
 pay — and as said before, their value in excha7ige de- 
 pends entirely on the probability of their being 
 redeemed in something having real utility, intrinsic 
 value. (See §§ 2-6) 
 
 91. Money is often spoken of as metal money and paper 
 
 money— but many of the best thinkers claim that 
 paper money is only credit. 
 
 EXKRCISK. 
 
 Test paper money by the functions of money — and by 
 
 the four essentials of money. 
 Does the value of paper money depend at all on the 
 
 probability of its being redeemed in something else; 
 
 say gold or silver? 
 How then does it compare with credit paper? 
 Read Chapter XXVI in Macy's Our Government. 
 
 92. There is a great dispute going on at present as to 
 
 whether money should be made of one metal, gold, 
 or whether both gold and silver should be coined as 
 money at a fixed ratio of value. The bi-metallists 
 claim that by legally fixing the value of gold as 
 16 to I, sixteen oz. of silver being equal to one of 
 gold, and making the silver coins sixteen times as 
 heavy as the gold coins of the same value, a constant 
 ratio can be maintained between these metals and 
 many great advantages will follow. 
 
 93. The mono-metallists claim that value is a matter of 
 
 supply and demand and cannot be determined by the 
 government. 
 They quote Gresham's I^aw, that the poor money always 
 drives the good money out of circulation, and show 
 by history that this has always been true, and there- 
 
NOTES. 53 
 
54 INSTITUTE ECONOMICS. 
 
 fore that we should use only one metal, gold, for 
 money, and make all our silver money only token 
 money, like the English silver money, receivable in 
 payment of debts only in limited amounts. 
 The question is too large for discussion here but a table 
 of American coinage will be given and an exercise 
 on the same to bring out the leading facts of the 
 coinage laws of the United States. 
 
 95. Legal Tender is that currency, or money, which the 
 
 law authorizes a debtor to tender, and requires a credi- 
 tor to receive. Webster's International Dictionary. 
 
 96. As the result of investigation and recommendations by 
 
 Jefferson and Hamilton, resolutions were passed by 
 the continental congress iu 1785 and 1786 which led 
 to the coinage laws of 1792. The changes in the 
 coinage of the United States since then are recorded 
 in the following table. 
 
NOTES. 55 
 
(L) 
 
 k1 
 
 to § 
 
 O ^ 
 
 O i5 
 
 5-^ 
 o « 
 
 do 
 
 O ^ 
 
 o2 
 
 9>^ 
 
 ■' G 
 
 H ^ 
 
 <1 
 
 S§ 
 
 :3 
 
 . P3 
 
 o w 
 
 .« 
 1-1 H 
 
 O 
 
 
 1 r 
 
 ad 
 
 dS 
 
 o 
 
 
 q::! --^ ci 
 
 
 » c 
 
 2^ 
 ';^.d 
 
 
 
 
 
 3 
 
 
 ^ 
 
 ^•SS 
 
 
 R' 
 
 r| 
 
 t 
 
 C 
 
 
 
 <1 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 ^12 
 
 S 
 
 ■^ 
 
 'S 
 
 
 
 <11 
 
 
 
 oog 
 
 ^ 
 
 
 § 
 
 02 
 
 ".T 
 
 HD --' 
 
 rt 
 
 
 
 cr 
 
 ;^ <&"r; 
 
 r^> 
 
 ^ 
 
 
 CI 
 
 
 
 ',■; 
 
 
 
 
 
 l' ?C j5 
 
 
 
 
 O) 
 
 
 
 J 
 
 r; 
 
 ii 
 
 r-; 
 
 ^ 
 
 J^C-IHH 
 
 1—1 
 
 H- ( 
 
 \^ 
 
 GC 
 
 (-4 
 
 "s ?3 X F ?: c; p ra 
 
 
 j" 
 
 !-i 
 
 
 ^ 
 
 rt 
 
 d 
 
 CC 
 
 
 
 
 
 s 
 
 
 
 
 
 
 L:) 
 
 M 
 
 P 
 
 2 
 
 © 
 
 © 
 
 H 
 
 f^ 
 
 ^►^ 
 
 
 
 
 02 
 
 CO 
 
 ci 
 
 lOW^iN ONCOeo CO 
 
 C0O\CO^ "^lOtN !>. 
 
 tN t>co CO CO 00 CO 00 
 
 HHMH MMH H 
 
 0\ O to Tf- P^ 
 t> ON Ox C^ 
 CO 00 00 X I 
 
 H H H H 
 
NOTES. 57 
 
5S INSTITUTE ECONOMICS. 
 
 EXERCISK ON § 96. 
 What was the unit of money by the law of 1792? 
 How many grains of pure silver in that unit? 
 Has the amount of pure silver in the silver dollar ever 
 
 been changed? 
 What was the ratio of pure silver to alloy in the dollar 
 
 of 1792; in the dollar of 1834? of today? 
 
 What was the ratio of pure gold to alloy in the gold 
 
 coins of 1792? of 1837? 
 Was gold more valuable in the market or as money 
 
 from 1 792- 1 834? 
 What was done to the gold eagle to bring it nearer to 
 
 market value in 1834? 
 How long was fractional silver legal tender? 
 When was the gold dollar first coined? 
 Which was worth more in the market between 1837 ^^^ 
 
 1873, gold or silver money? 
 What effect had the act of 1873 on silver? 
 Has it ever been restored to coinage? 
 Has its legal tender quality ever been restored? 
 For what amounts is fractional silver now legal tender? 
 97. The political money (W. p. 145) or pnper money issued 
 
 by the government, at present comprises 
 
 1. United States Treasury notes (Greenbacks) which 
 are promises to pay, and are Legal Tender for all 
 debts public and private except Duties and Interest 
 on the public debt. They are Credit Paper. 
 
 2. Silver and Gold certificates, which are certificates 
 of deposit of so much silver or gold in the U. S. Treas- 
 ury. They are not legal tender but are receivable in 
 payment oi goveryimeyit dices of all kinds. 
 
 98. National Bank notes are not strictly U. S. money. 
 
NOTES. 59 
 
60 INSTITUTE ECONOMICS. 
 
 They are the promissory notes of the National Banks 
 and are secured by the deposit of U. S. bonds in the 
 U. S. Treasury. 
 They too are only credit paper. 
 
 99. Very interesting descriptions of the money of the United 
 
 States may be found in the Andrew's Manual of the 
 Constitution pp. 95-107, and Hinsdale's American 
 Government pp. 199-21 1. 
 
 CONSUMPTION. 
 
 100. Consumption (in economics) includes all processes by 
 
 which wealth is destroyed. Amasa Walker defines 
 it (p. 391) as "the use of wealth." 
 Consumption has been divided into 
 
 1 . Natural 
 
 2. Accidental 
 
 3. Immaterial or Notional Consumption. 
 
 1. Natural consumption includes destruction by de- 
 cay, depredation of rats and other vermin, etc. 
 
 2. Accidental consumption includes such losses as 
 those by fire, railway collisions, &c. 
 
 3. Notional consumption includes the decline of value 
 through lapse of time or change of fashion. 
 
 We shall not investigate this subject, but leave it for 
 your later study. 
 A very suggestive analysis ol Consumption is 
 
 1. Productive Consumption 
 
 2. Non-productive " 
 
 I. Productive consumption is such a use of wealth as 
 results in the increase of value 
 
 This occurs when wealth of any kind is used in 
 (i) furnishing food, shelter or clothing 
 (2) providing material for manufacturers 
 
NOTES. . 61 
 
62 INSTITUTE ECONOMICS. 
 
 (3) making tools. 
 
 2. Non-productive consumption is 
 
 (i) such a use of wealth as affords pleasure with- 
 out bringing any returns in the way of more wealth. 
 (2) such as is a dead loss, bringing disappointment 
 or pain instead of pleasure 
 KXERCISE. 
 
 Is accidental consumption productive or non-productive? 
 
 Give an example. 
 
 Is such consumption advantageous to society? 
 
 Non-productive consumption for pleasure is called lux- 
 urous consumption. 
 
 Can you give arguments for and against this kind of 
 consumption? 
 
 Give several examples of notional consumption. 
 
 Is notional consumption productive or non-productive? 
 
 Give examples, and explain. 
 
NOTES. 63 
 
FART Ho 
 CiVlCSo 
 
 The Civics here given is merely an outline, and should 
 be supplemented by the use of the Hand-book for Iowa 
 Teachers, furnished by the Superintendent of Public Instruc- 
 tion. L. W. P. 
 
INSTITUTE CIVICS. 
 
 THE UNITED STATES GOVERNMENT. 
 
 CONSTITUTION. 
 
 The United States Constitution was 
 
 Proposed by a Constitutional Convention held in 1887, 
 
 as a substitute for the Articles of Confederation, 
 It was Ratified by the necessary number of States (yi, or 
 
 9 States.) 
 And the first Congress assembled April 6, 1789. 
 North Carolina ratified in Nov. 1789. 
 Rhode Island ratified in May, 1790. 
 
 AMENDING the: U. S. CONSTITUTION. 
 
 Amendments 
 
 May be Proposed May be Ratified 
 
 1. By a fi vote of each i. By a majority vote in 
 House in Congress. ^ of the States Legis- 
 
 2. By a majority vote in latures, or 
 
 a National Convention 2. By a majority vote in 
 called by Congress on yi of the State Conven- 
 
 the demmid of f/3 of the tions called for that 
 
 State Legislatures. purpose, if Congress so 
 
 orders. 
 Amendments proposed in either of the two ways may be 
 ratified in either of the two ways mentioned, as Congress 
 sees fit. 
 
INSTITUTE ECONOMICS. 67 
 
 This makes four ways of amending the Constitution of the 
 
 United States. 
 All the fifteen amendments have been proposed by Congress 
 
 and ratified by the State Legislatures. 
 Other amendments have been proposed but failed to be 
 
 ratified. 
 A State's ratification of an amendment cannot be recalled 
 
 after being reported to the Secretary of State. 
 
 DEPARTMENTS OF GOVERNMENT. 
 
 The Government of the United States comprises three 
 Departments. 
 
 1. The Legislative or Law-Making Body. 
 
 (a) Senate. 
 
 (b') House of Representatives. 
 
 2. The Executive or Law- Executing Body. 
 
 3. The Judicial or Law-Interpreting Body. 
 
 I.EGISLATIVK POWER OF NATION AND STATE 
 COMPARED. 
 
 Congress has only such powers as are granted in the Consti- 
 tution of the United States. 
 
 See M. p. 48, 
 U. S. Con. Amend. X. 
 The State Legislature has all legislative powers ?iof prohibited 
 by its own constitution or by 
 
 The Supreme Law of the Land, \'- }{■ |- Constitution. 
 
 • ^ ' < 2. U. b. statutes. 
 
 ^ '';•'( 3- U. S. Treaties, 
 
 See McClain's Code 
 of 1888, p. 1818. 
 The U. S. Constitution is the Funda^mental Law. and all 
 Statutes and Treaties must be consistent with it. 
 
6S INSTITUTE ECONOMICS. 
 
 THK CABINE:T. 
 
 The President's Cabinet, or the heads of the Departments, 
 are appointed by the President with the consent of Con- 
 gress, and may be discharged without that consent. 
 They comprise the 
 
 1. Secretary of State, 
 
 2. Secretary of Treasury. 
 
 3. Secretary of War. 
 
 4. Attorney General. 
 
 5. Postmaster General. 
 
 6. Secretary of Navy. 
 
 7. Secretar}^ of Interior. 
 
 8. Secretary of Agriculture. 
 
 This list of officers is easily remembered by their initial 
 letters which spell St. Wapnia. 
 
 In case of the death or inability of both President and Vice 
 President, the mem^bers ol the Cabinet in the above order, 
 succeed to the office, for- the rest of that admiyiistration. 
 

 gLc c -5 ffi 
 
 ^ I • I i 2- 
 
 O . tS^ . CD 
 
 ???|2|af|-|?l 
 
 o • , 
 
 X -' 
 
 Zi p 
 
 I? 7^ o 
 
 s I 
 
 !-• CD 
 
 B'cT 
 
 ffi '-Ceo 
 p • w 
 
 j; ,.^,;tck CD c3 
 c'5' 
 
 
 ^1 ^o -^? 
 
 C5 CD, CC ^ 5 >3 
 
 r^ £ 5 p ^ 
 
 oc^ p ^ 
 
 rr^ O 
 
 B? 
 
 .-'^^ 
 
 QJ^ i=i,CD 
 
 
 <t> — ;- 
 P CD CD 
 
 r^jc <! 
 
 CD ® 
 O 
 
 C J;': Ht CD CD B 
 
 pj::^ ?5 ?i= p 0'<| 
 
 O Q_,^^ i-i p 
 
 BO' 
 CD E: 
 
 of 
 
 dP, 
 
 Ho 
 
 ) » H ^ 
 rrCD M r^ 
 
 O ic <! C 
 
 H s ?; £.0 
 
 ^ CD CD ^t- M 
 P • — :^ 
 
 ^£'^'5 p^O 
 
 MPJ 
 
 • O 
 
 p CD n 
 
 3^p 
 
 5 2c.^, 
 
 HmsP CD 
 
 &=rp 
 
 CD CC -^ 
 
 p ^cc 
 cc{3 
 
 
 ®So 
 
 ^'^ =! 2 c 
 
 P o 
 
 O 03 
 
 S^P^o-S^^gS- 
 |3§a?§W- 
 
 tU^P • ^^ 00 o 
 c ^.&^ -- ® ^ P 
 
 2^^ 
 
 • i<3- 
 
 i.-C 
 
 
 O o 
 
 to 
 
 ^^tiiiSi 
 
 CD ffi . 
 
 
 29^ 
 
 _ 'CD ^ p ►:^~S^ P 
 
 P C; C5 ri-STrt-. » 
 
 wW. 
 
 
 OMspi-Sti-'^PStffl-wO' 
 
 o^iyO^^pgS^i^P^-' 
 
 ■C^W J3 
 
 CD dCD P 
 
 (-(-.73 ni 
 
INSTITUTE ECONOMICS. 
 
 JUDICIAI, DEPARTMENT. 
 
 The United States Courts comprise 
 
 1. The Supreme Court, — Chief Justice and 8 Associates. 
 
 Sitting at Washington. 
 
 2. Nine Circuit Courts of Appeals. 
 
 Sitting in the Nine Circuits. 
 
 3. Nine Circuit Courts. 
 
 Sitting in the Nine Circuits. 
 
 4 Sixty-seven or more District Courts. 
 
 Sitting in the Various Districts. 
 5. Court of Claims. 
 
 Sitting at Washington, 
 
 Jurisdiction of United States Courts. 
 
 References— Const. Art. Ill, II, and U. S. Statutes Act March 3, '91. 
 Abbreviations— 0, Original Jurisdiction. 
 A, Appellate 
 
 ^„^^^.„To„r ( Constitution) 
 '■ ''^Sfe; ^-derLaw^aM {ofU.S 
 
 2. Cases Affecting Ambassadors and other Public 
 
 Ministers 
 
 3. Cases of Admiralty I T,,„,-„Hi«fir.n 
 
 Maritime (Jurisdiction 
 
 4. Cases where the U. S. is a party ..•• 
 
 5. Controversies between States 
 
 6. " "a State (as plaintiff XI Amend.) . 
 
 and citizens of other states... 
 
 7. " " citizens of different States 
 
 8. " " " " same state claiming 
 
 land under grants from dif- 
 ferent States 
 
 9. " " a state and a foreign state 
 
 10. " " a citizen and " " 
 
 11. " "a state and subject of a foreign 
 
 state 
 
 12. " " a citizen and a subject of a 
 
 foreign state 
 
 u 
 
 at 
 
 < 
 
 S3 
 
 at 
 ft 
 
 A 
 
 A 
 
 
 
 A 
 
 
 
 
 
 A 
 
 
 
 
 A 
 OA 
 
 A 
 
 
 
 OA 
 
 A 
 
 
 
 
 
 A 
 
 OA 
 
 A 
 
 
 
 
 
 OA 
 
 A 
 
 
 
 
NOTES. 71 
 
72 INSTITUTE ECONOMICS. 
 
 NATURAI^IZATION. 
 
 Congress may establish a uniform rule of naturalization. 
 
 U. S. Const. Art. I., VIII, 4. 
 Naturalization is the process of giving to an alien the rights 
 
 and privileges of a native citizen. 
 The present laws concerning Naturalization require 
 
 1. Five years continuous residence in the United States. 
 
 2. Two sets of papers to be taken out. 
 
 (a) First papers declaring intention of becoming 
 a citizen. 
 
 (d) Second papers, /wo years later, renouncing 
 allegiance to other counties and swearing 
 allegiance to the United States. 
 
IOWA GOVERNMENT. 
 
 HISTORICAL. 
 
 Organized as a Territory in 1838. 
 
 Admitted as a State in 1846. 
 
 First Constitution in 1846. 
 
 First Capital, Iowa City. 
 
 Unsuccessful attempt to locate Capital at Monroe, in 
 
 Jasper County. 
 Change ol Capital to Des Moines — 
 
 By act of General Assembly in 1855. 
 
 By proclamation of Governor in 1857. 
 Second Constitution in 1857. 
 
 AMENDMENTS TO THE STATE CONSTITUTION. 
 
 Proposed by either house. 
 
 Agreed to by absohcte majority of each house. 
 
 Published three months before election of next General 
 
 Assembly. 
 Passed by majority of next General Assembly. 
 Submitted to popular vote. 
 If supported by a majority of votes cast it becomes a part 
 
 of the Constitution. 
 

 
 
 
 
 ^ 
 
 
 © 
 
 
 
 
 3 
 
 '1 ''^ 
 
 t, 
 
 
 
 
 o 
 
 % o 
 
 n. 
 
 
 
 
 CC iJ O 
 
 a © 
 
 
 
 
 
 © 03 . -^^ 
 
 . © ©4j . r; 
 
 1 P^ 
 
 . ©'^ o 
 
 CC r- ©^ 
 
 
 
 
 .et^ W?S2 o 
 
 i B ^ 
 
 
 i 
 
 
 dH .,-^ o+-'_5 «s 
 
 
 
 
 EH 
 
 ft 
 
 CC 
 
 Dor. 
 
 ences. etc. 
 
 Bmeteries. 
 
 surer of Tow 
 
 : of Board of 
 " Elections 
 " Tp. Boarc 
 
 financial stat 
 
 notice of elee 
 
 3 returns of e] 
 
 ditor. 
 
 of roads in di 
 
 ct road tax. 
 
 property ( „ -u 
 
 ss " M^ 
 
 militia. 
 
 ction of taxes 
 
 e officers. 
 
 sterial officer 
 
 i 11 
 
 CO .^^^ 
 
 ■4^ 
 
 
 
 © CC 
 
 03 ^ 
 
 1 
 
 > 
 
 
 
 1 i 
 
 
 s 
 
 sS B £ 
 
 6 
 
 &J3 
 
 
 •al 
 
 © 
 
 .2J .2 S 
 
 © CC 
 
 S 
 
 
 l:- © 
 
 ■ ^'^ <D J-i ?- 
 
 '^ © 
 
 © 
 
 5 
 
 
 © © 
 
 © © © © © 
 
 © © 
 
 © 
 
 
 ^^ 
 
 llnPLiPq Ph Ph 
 
 ^f^ 
 
 fR 
 
 p 
 
 
 
 
 
 3 
 
 1 
 
 
 
 
 
 ^ 
 
 n 
 
 
 
 
 
 M 
 
 
 CC 
 
 cr. CC a- 
 
 CC .• 
 
 CC 
 
 S 
 
 ^ 
 
 1^ ^ f- 
 
 '^ 1 
 
 Im 
 
 Ej 
 
 ct! 
 
 03 a c. 
 
 ci^ 
 
 C3 
 
 
 Ph 
 
 © 
 
 © © © 
 
 © © 
 
 © 
 
 ^ 
 
 H 
 
 >. 
 
 >> t>. >> >.->' 
 
 >. 
 
 ^ 
 
 H 
 
 CO 
 
 C^ CI c 
 
 (T) 1-i 
 
 d 
 
 ^ 
 
 dl " 
 
 d d r 
 
 ^ ^ C3 
 
 d 
 
 t. . 
 
 s>^ 
 
 O O C C Of==5 
 
 C 
 
 ^W 
 
 
 
 
 
 o 
 
 § 
 
 cm 
 
 © o © © ©-S 
 
 © 
 
 
 © '^ 
 
 al ele 
 
 al ele 
 al ele 
 
 al ele 
 al ele 
 nday 
 
 p2 
 
 >> 
 
 © © 
 
 15 
 
 'S 
 
 
 
 li 
 
 5 
 
 |3 
 
 © 
 
 '^ '^ '^ '^ 'r^ <D 
 
 fH 
 
 
 © © © © ©^ 
 
 © © © © ©i^ 
 
 © 
 
 © 
 
 
 
 o 
 
 O O O 00;S 
 
 O 
 
 tM 
 
 
 © 
 
 © © © © © © 
 
 © 
 
 o 
 
 
 
 ^ -M -^^ -l-^+^-l-i 
 
 
 
 "o 
 
 O O+i o o o o 
 
 o 
 
 
 
 l> 
 
 > > CC P> f> > P* 
 
 
 s 
 
 l-l 
 
 ul'r 
 
 ul'r 
 3f di 
 ul'r 
 
 ul'r 
 ul'r 
 ul'r 
 
 
 
 c 
 
 o o o occ 
 
 c 
 
 
 Ph 
 
 ^ Ph ^ 
 
 ^^^ 
 
 f^ 
 
 
 
 
 
 
 o 
 
 rt 
 
 
 .2 
 
 a .2 
 
 
 
 
 CO 
 
 1 
 
 to road 
 trict. 
 
 to eacl 
 
 2 plus 
 
 to sub- 
 
 CC 
 
 a 
 
 
 
 
 1— 1 
 
 1-H ^ 
 
 
 
 
 fl • : 
 
 
 ■ — . 
 
 : : CC 
 
 © 
 
 
 
 
 
 
 'rA '. 
 
 
 
 
 
 ;2; 
 
 
 
 p ; 
 
 CC ■ , 
 
 ^ 
 
 
 a 
 
 1 
 
 <1 
 
 Is 
 
 3 oi 
 
 - © 
 
 1 
 
 a 
 
 z 
 
 (and treasui 
 
 Road Super- 
 visors.... 
 
 Tp. Collecto 
 Constables.. 
 Board Diree 
 Judicial. 
 Justices of 
 Peace. 
 

 
 
 . • CC ^- -fc- 1 CC =tr 
 
 1 # 
 
 1 5t§ cc c -^^5'"-^ 
 
 i 
 
 
 lisi fii 1 1 
 
 
 
 
 
 ?:' r- rf >.. ^ c X ..;q r^ - . 
 
 
 
 
 
 .cr: 
 
 c: O y 
 so g 
 
 
 
 ShHPhOcC';<WO?^ M K|2^ 
 
 
 S 
 
 
 ^ £ s ~ 
 
 ft 
 
 
 S J ^ J2 ^ cc cc O 
 
 -; ce ce c3 o li^^ 
 
 S.2 ?' '?= S 
 • • ^-;= ^ 1 
 
 cc cc a: r, -^ % ^ 
 
 © OJ G S ^^ =? ^^ 
 
 0) O © r=; 0) '^ 
 
 
 fin 
 
 ^'Jl 02 ^ m ^C^ 
 
 :^ fi^ p^~p^ c 
 
 
 
 £ 2 2 ^*?3p 
 
 J^- x' CC' 5 
 
 
 
 — ^ !^G 
 
 
 
 O O O -ti o c o 
 C CO ^oco 
 
 ill I'^il . 
 
 -C C« 
 
 o 
 
 O 
 C 
 
 C ^ CD 
 
 1 p^ f^ 
 
 a: 
 
 -Ji a: cc cc cc a: 
 
 a-j a: a: cc ■ a-' 
 
 ^ 
 
 Im i:-i Si i^ im ij 
 
 -^ 5h i- i- -t; !^" 
 
 WP4 
 
 >. 
 
 >» >. >■ >>>-.>. 
 
 r-> >.>■,>■. 1- >> 
 
 l^g 
 
 CO 
 
 C^' (MiM (M'*C^C^C0(MC1.^^ 
 
 
 c: 
 
 -. ; ; ; ; — : 
 
 CC cc cc a: a: a: 
 
 -C © r; X r-l 
 
 
 o 
 
 "-i3 
 
 
 ^ ^. :§ ^ ^ 1 
 
 § 
 
 o 
 
 
 = s^ § ^ i £ 
 
 H 
 o 
 
 1^ 
 
 
 
 
 o 
 
 : : : : : : : 
 
 >> S ^ ^ s 
 
 
 
 
 
 " 
 
 « 
 O 
 
 
 3 © ^ " S 
 
 
 -2 
 
 
 1 i 1 i 
 
 o 
 
 
 c a; o 
 
 >► 
 
 
 ^ P- , -> > 
 
 o 
 
 
 ' * ' i :: ' ^ 
 
 ■^ . • ^ 
 
 b» 
 
 p. 
 
 
 . ^ S P. 
 
 1 
 
 ^ 
 
 
 § ^ 1 ^ 
 ^ ^ 
 
 « 
 
 t^ 
 
 
 o ■ . . 
 
 B 
 
 ;-l 
 
 
 c ^ aa 
 
 n 
 
 c 
 
 1-1 r-f i-H T-H r-t r-l 1- 
 
 H C rH ^ C ^ ?M 
 
 
 of 
 
 
 1 S? 
 
 
 R ; 
 
 
 
 ^ : 
 
 -^ 
 
 • p • ■ 
 
 i 
 
 I? : 
 
 
 ■ 2 
 
 
 (5 
 
 m ' 1 
 
 §11 i s 
 
 2 
 
 1^ s o 
 
 c 
 
 < 
 
 : P s 1 
 
 H 5 ^ 
 
 
 i 1 
 
 <; • " X ;^ XI 
 
 1-5 
 

 
 til) 
 
 
 
 c 
 
 
 
 
 
 '0 
 
 '^ 
 
 
 o 
 
 <v 
 
 
 
 
 
 . a 
 
 a> 
 
 
 
 
 o 
 
 ■~<'X1 
 
 
 to 
 
 ^^ 
 
 
 
 CD CD 
 
 .2 ^ :e 
 
 s 
 
 > 
 o 
 
 o 
 
 la 
 
 CO 
 
 o 
 w 
 
 o 
 >> 
 
 CO 
 
 :3 
 
 O 
 
 ^.:??P, 
 
 
 O 7i 
 
 
 
 ®-:5 r- ^ x 
 
 O CD 
 
 U'Jl 
 
 ;h cc^ CD S s-i 
 a* G © > y^ <D. 
 
 © g ^ o o:i^' 
 
 sie^^^ 
 
 ■.-: © 
 
 go 
 
 >^ 
 
 ^§ 
 
 o o 
 
 CDTS 
 ^ ^ ^j. ^ ri a3 
 O © Jc^ S g 
 
 
 
 GO o : © 
 
 K '-H : > o 
 
 "'"' O : <-! cd 
 
 ^ : © -T^ 
 
 ©© :CC 
 
 11/ ■■ 
 
 •Ecfi ^ S o ©^ 
 
 © w g3 ©OR © 
 
 far 
 
i O ^.S o- go o >. 
 
 C3.2 ^ 2 tH ^ dS 
 ?tS-§,'^So§§ 
 
 .3 o.t; 0.3 o+3^.S o 
 
 
 +? ce 
 
 f,c.2 0®„2-75 
 
 g2'SgcrJ^-ll 
 Ill 1^1 1 1 II 
 
 'rt r^ ... ^^^ © ^ ffi S 
 
 c3 O-^^^® 
 
 *^o«„2.2^-^ 
 
 ftO+3 cc+3 
 
 
 
 
 
 .2.S|S^ 
 
 OP3 
 
 
 C3-; 
 
 
 sll|2^i 
 
 
 Ph ^,-^, 
 
 5 
 
 
 «l5 
 
 ig 
 
 at. 
 
 « 3 
 
 O r^ 
 
 ^ CO 
 
 iO 
 
 cc 
 
 :=^. .?^ 
 
 
 .a: 
 
 3b^P 
 
 Cf-l o 
 
 £; ^ p; O 
 
 ^^ 
 
 •-i?g. $ 
 
 So 
 
 2p^ o 
 
 e b M o 
 
 ^5 
 
 
 2 o 
 
 So 
 
 — 1^ j:^ o 
 
 o 0)=- 
 
 O ,' 
 
 '^ ^ ^-Z ^ • 
 
 © p. O -i -J3 
 
 CM C cc 
 
 si 
 
 2!S,- 
 
 CC' cc 
 
 © © ©;-i:pH 
 03 cc cc CC © 
 
 Hr- 
 
 ^nr 
 
 "o o 
 
 -l-i 
 
 -I-' - — • ^-1 
 
 ■•^ ^ o 
 
 =2 .o 
 
 ^ ©ctH f-i <3^ 2: 
 
 <1rH o;2:^oa^o6 
 
 1>. >» 
 
 
 sJ .O c3 
 
 
 
 ^ ^ 
 
 S ^ 2 
 
 
 £ ^ 
 
 1 J§3 
 
 R 
 
 S ."5 
 
 ^. 
 
 
 1 Sl2 
 
 ca 
 
 -Si 
 
 O cC-i^rH 
 
 
 gwx 
 
 ' — ^ V ' 
 
 
 C5 
 
 Ex.Coun 
 
 . 
 
 ® 
 
 
 ^ 
 
 > 
 
 
 
 H 
 
 •*-• 
 
 
 ^ 
 
 (C 
 
 ■~ 
 
 S 
 
 CO 
 
 3 
 
 «: 
 
 
 O 
 
 ^ 
 
 
 s 
 
 
 -1 
 
 Ul 
 
 re 
 
 y, 
 
 :;:; 
 
 7)2 
 
 s 
 
 H 
 
 a 
 
 c o 
 
 ,o 
 
 
 6 
 
 g'Pa 
 
 p: 
 
 'b 
 
 U 
 
 OM5 
 
 ■^ 
 
 W 
 
 o 
 
 6-S J^ 
 
 rn 
 
 r:5 
 
 © 
 
 g|M 
 
 ra 
 
 W 
 
 H5£ 
 
 02 
 
 4^ © cc 
 
 £? ^ - - 
 
 W H M 
 
78 INSTITUTE ECONOMICS. 
 
 THE EXECUTIVE COUNCIE. 
 
 1 . A Board of Equalization of Taxes between Counties. 
 
 2. A State Board for Canvassing Election Returns from 
 
 Counties. 
 
 3. A Business Board for certain affairs connected with 
 
 the Capitol and State Officers. 
 They comprise 
 
 1. The Governor. 
 
 2. The Secretary of State. 
 
 3. The Treasurer. 
 
 4. The Auditor. 
 
 Any three constitute a quorum for business. 
 
 THE COURTS OF IOWA. 
 
 1. The Supreme Court of six Judges. 
 
 The senior judge is Chief Justice, 
 Term of service, 6 years. 
 
 2. Nineteen District Courts comprising from one to four 
 
 judges each. Term of service. 4 years. 
 
 3. The Justice Court of the township. 
 
 4. The Mayor's Court of the city or town. 
 
 5. The Police Court of the larger cities. 
 
 6. The Superior Court of cities of 7,000 population, 
 
 CITIES CLASSIFIED. 
 Cities of the First Class comprise those of 15,000 population 
 
 or over. 
 Cities of the Second Class comprise those of more than 
 
 2,000 and less than 15,000 population. 
 Towns of less than 2,000 population may incorporate if, on 
 
 petition of 25 voters, an election is held on the question, 
 
 and a majority of the votes cast favor incorporation. 
 
INSTITUTE ECONOMICS. 
 
 RIGHT OF SUFFRAGE. 
 
 Male citizens of the United States 
 
 Resident in State 6 months ) ^ ,. . . 
 
 In County 60 days | next preceding election are 
 •' ^ ^ entitled to vote. 
 
 Art. II., Sec. i, Constitution. 
 Idiots, 
 
 Insane, and 
 
 Those convicted of infamous crimes 
 
 are deprived of the right of suffrage. 
 
 An infamous crime is a state's prison offense. 
 
 Suffrage may be restored by the Governor. 
 
 § 6209 Code of Iowa. 
 
 Chandler p. 177. 
 
LIBRARY OF CONGRESS 
 
 013 722 101 9