HB 172 .L36 Copy 2 mk OF THE LAW AND OF ECONOMICS ADDRESS DELIVERED «Y SECRETARY OF INTERNAL AFFAIRS OF PENNSYLVANIA. BEFORE THE SIXTEENTH ANNUAL CONVENTION OF THE NATIONAL ASSOCIA TION OF OFFICIALS OF BUREAUS OF LABOR STATISTICS. MILWAUKEE, WISCONSIN, JULY II, I900. WM. STANLEY RAY, STATE IRINTER OF PENNSYLVANIA. 1900. OF THE LAff AND OF ECONOMICS ADDRESS DELIVERED BY . cr SECRETARY OF INTERNAL AFFAIRS OF PENNSYLVANIA, BEFORE THE SIXTEENTH ANNUAL CONVENTION OF THE NATIONAL ASSOCIA- TION OF OFFICIALS OF BUREAUS OF LABOR STATISTICS. MILWAUKEE, WISCONSIN, JULY II, I900. WM. STANLEY RAY, STATE PRINTER OF PENNSYLVANIA. 1900. Qjyi^\- A' f^ 'Mk^ Offf OCT 12 1908 (2) OF THE LAW AND OF ECONOMICS. An Address Delivered h_v James W. Latla, Sccielai-.v of In(eiiial Artaiis of PeiHisylvauia, before rlie Kitii Aiinaal Convention of the National Association of Olticials of liuieatis of Labor Siatis- ties, Milwaukee, ^^'is(■ollsin. July 11. 1!MH». The wisdom of the jndg*' has often been (jiiestioned. his intejiiity sometimes assailed, but the hnv he intei-piets has rarely been defied. Whatever denunciation may reach other jiovernmental functions, the law and its administration have always commanded respect, not for the awe it insjiires or the fear it enj^enders. but for the inherent regard its majesty invokes. The majesty of the law is the only sov- ereign the Kepublic knows. Puncture the integrity of its enforce- ment and the throne itself is threatened. Tlu^ complaints of the disappointed suitor, the infrequent preference s of prejudice, the in- acity never disturb the concession to the august supremacy of the law. Improvident corj)oration legislation. ];ie-election legislation providing methods that may subsecpiently be made o]»erative to overcome the i)t)iiular will, obnoxious statutes, the repeal of which their rigorous enforce- ment sometimes coerces, have in no wise imjiaired the exercise of authoiity for the preservation of right, the i)rohibition of wrong. The suitrcMue jiower of the State still rommands. The rule of action it JM escribes is still the law. The State jjrotects itself against tliose who would destroy it. so- ( iety a.nainst crime, the individual against injury. Against tht» person of the c<»nvict and the projierty of the deliniim^nt the law exe- cutes its decrees. In the one instance the injury doiu^ society is atoned for; in the other the wrongs done the individual ar<' righted. The body answers for the (rime; the ]iro|)erly i-esjiouds for the d<'- lincjuency. The system of rules and regulations which is recogni/.ed as the law that among men governs their intercourse with each other ami protects society fiom crime, is that law of ]iersonal secuiity whos" sii]>reuuicy commands resi»ecl. elicits obedience. The political ( n- > ironment that concerns the administration of the governmental functions that maintain li])erty, resist invasion, subdue riot, sup- press insurrection, is the propagator of the more exalted si'uti- (3) nieiit of patriotism, the patriotism that recognizes the flag of our coiiniry as the common conservator of our national dignity, the common arbiter of our national destiny. "In everything which concerns civil and political liberty/' says an eminent text writer, "no system has yet been devised that can be compared with the free spirit of the English and American common law." The common law is a creature of conditions and necessities. It is custom and usage gradually adopted, sanctioned by the courts. It was before legislatures were, and has been since. All law did not begin by legislative consent, and therefore the common law is not as one of the earlier writers phrases it "statutes worn out by time." A better comprehension of its origin and stability is supplied by Sir Matthew Hale. "It is not," he says, "the product of the wisdom of some one man or society of men in any one age, but the wisdom, coun- sel, experience and observation of many ages of wise and observ- ing men." It is indigenous where constitutional liberty thrives; elsewhere it is an exotic. "Wherein had this free spirit of the common law its earliest mani- festations? The common law is a rich illustration of the processes of evolution. Born of the villages in the jutting peninsulas that nar- row the Baltic, and their adjacent lowlands, its traditional develop- ments "preserved in a nation's memories'" reached their fullest frui- tion in the treaty King John made with his barons in the beginning of the thirteenth century. The age of. traditional rights was to j>ass away and "the age of written legislation of parliaments and statutes was to cdm'e." The youth in the academy, in his first at- tempt at English composition, rarely fails to exploit something of Kunymede, the Barons, King John and the charter. The profound- est statesman finds inspiration in the theme, and so it will ever be. The full intendment of this ancient declaration is frequently over- looked. Had it been confined to the barons, as their prominence in forcing its iiiitiative would indicate was jts purpose, its perpetuity A'.'ould never have been stamped, as it has been, upon free institutions everywhere. The rights secured were "not of baron and church- men only, but of freeholder and merchant, of townsman and villein." Where the privilege of the simple freeman is not secured by the clause wiiich primarily affects the baron, a supplementary clause is added to define and protect his rights. The merchant, it was agreed, might go out of the kingdom and return at his pleasure. He was to be protected by a uniform standard of weights and meas- ures, and allowed to transact his business free from arbitrary tolls and impositions. Trade was invited from abroad, and the foreign merchant encouraged to visit the kingdom by the protection accorded him. No fine could be levied to the utter ruin of anyone, and the villein or rustic by fine or amercement was not to be deprived of his lioi>es, his caits, his ]ih)u;Lths, or iinitU'iiicnts of husbandry. An cx- eniiition law had for tlio tiisl tinio declared its imipose. One of the concludinii clauses is of forceful sij;iiiticance. It embodies jnovi- sions so essiMitial to the niainlenance of constitutional ••■overnuH*nt that with but little niodihcation Ihey have ever ai)iieared in the fun- damental law of every fret state. "X(t freeman shall be taken or imprisoned or disseized or outlawed or exiled or anywise destroyed; nor will we <;(► upon him, nor send upon him, but by the lawful judj;- ment of his peers or the law of the land. To none will we sell, to n(.ne will we deny or delay, ri^ht or justice I" What were the contemiKuaneous opjiortunities elsewhere, save tiniler the favor of royal ]irerojiative. where the free spirit of the common law was unknown? Mark the contrast t)f these insular con- cessions Vvith the interruptions and restrictions that beset the trader in the Latin countries of the Continent. The ki:>j!,"s rij^ht to the market was assured by the law. When liis vinta«;e canu' to town, the innkeeper closed his doors, the wine sho]) ceased to do business until His Majesty's stock was disposed of. And there wei-e other fr.rmidable rivals; the Sei<;neur and Abbe came after the king and held the monojioly. "Where kinj;. noble, or cleric turned tradesman for the noni e, the tradesman as such went juomptly to the wall." The king, by the fiction of a divine light, was ])rt)ne to be a law luito himself. The obedieme he yielded to his Parliament was a reluctant obedience. The distinction between the constitutional s(!vereigu and the sovereign of divine right, the sovereign absolute, is forcefully suggested in a neatly constructed dis])atch of Lord Koberts rejiorting one of his recent operations in ?5onth Africa. "I liope that Her Majesty's government (uot hei- majesty) may consider the event satsifactory. occurring as it does, on the auniveisary of Majuba." Learned jurists interpreted the <-ommou law, >*cholai'ly commentators expounded it, the king forgetful of his jdedges sonu'times interrujjted the free spirit <»f its liberty. Though its force was at times sus- pended, its substance was nevei- impaired. Cromwell hao]icy were treated of as inci- dental details in the one or the other of the two systems. It may not be inappro])riate therefore, economics now conducting its own in- dependent establishment, to }ilace it in touch with an ac(iuaintance of its youth for a brief association. More than a century since it began to be accepted with some ciudity that the lives men lead and the callings men ]»ursue in the relations that sustain the one and the conditions that su])port the (»ther were collectively deducible to such ])rinci]iles as to evolve a science. As this acceptance giew to conviction, the philosojiher sought to so ai)ply the science as to deduce from it such a useful art that its application might inure for the general betterment. Known in its earlier conception as i)olitical economy, it has so bioadened it- self as to include as well, sociology, which though of junior creation now dominates it; and statistics still of later birth is also its close cojielated adjunct. A science may be either the nu^thodical collec- tion of certain associated principles, causes and effects verified by observation, or it nuiy be the result of the research of discovery or the a])i)lication of invention. The ultimate mission of sciem-e is that Jt shall accomi)lisli a practical and substantial ]»urj)os,e. Economics is made up of environment. It is the scientific reiulei'- ing of educated observation. The better intelligences accept its prop- ositions, recognize its conclusions. The prudent and thrifty abide by its teachings. The ignorant and idle are restive under its re- artial ac- <]uaintance. He prefers to accei)t the accinaintance for what it is 8 woith, latliei- tliaii be burdened with the study that a broader knowl- edge demands. Economics is a science that subtly formulates its judgments, subtly draws its conclusions. Its decrees are executed by the very virtue of necessity. The state is the master of society, enforces resi)ect through authority, executes its purpose by the inherent strength of the laws it has created. Economics is so far dependent upon the state that it survives only upon the social structure the State pie- serves. Though neither of inspiration nor prophecy, economics stands to material life as a creed does to spiritual. Koman civilization was never softened by the acceptance of a Christian faith. Whatever contributions its wise men may have made to its stability, they never scientifically adjusted economical conditions towards its permanency. There were discordant differ- ences between its social classes. The central power claimed a fancied omnipotence. The irresistable laws of human nature were neglected. Patrician dignity was wounded if touched b}' the middle class. This estrangement was Eome's sorest trial in the hour of her greatest misfortune. The misfortune came when the northern bar- barians overran the Provinces and the citj itself. Savagery has al- ways accepted modern civilization or disappeared before it. Not so with the ancient. The middle classes preferred its rough justice to the tyrranous exactions of the patricians. The Roman arms could not overcome the invasion, nor the influences of an effete and waning civilization pursuade the savage hordes to accept it. Economics has never failed to meet new inventions, new conditions. The trust was supposed to have dealt a staggering blow to the axiom that "Competition is the life of trade." Whether competition does not yet survive and is not yet ready wdtli its blow to equally stagger the trust still awaits determination. Combination is the antithesis of competition. Trade is no stranger to either. In a modest w-ay combination has been the engine to stiffen a breaking or advance a steady market. Tn a cruel wa^" it has been a method to carry to commercial oblivion many who would have been glad to be permitted to be advantaged by its opportunities. By the law a man may do what he will with his own. A cardinal tenet of the economic science is that all his belongings are his for the satisfaction of his desires and it is of his own free will whether he accepts or rejects the doctrines of religion. He must not violate the rights of his neighbor, otherwise his morals, his gains, his labor, his possessions are solely for his individual disposition. The dogmas of the faith as expounded by the fathers were most seriously opposed, because it was contended that with their accept- ance, man surrendered his free agency. If it has been forordained whatsoever should come to pass, then the purpose of man to work out his own salvation lias been denied him; it has been antieipated bv a selection, in which he has had no part. The (.'hiistiau church was rent in twain. Schism, creed and doctrine not content with intellec- tual combat drenched (ontiiieiital Europe in bloody battle for more than half a century. Hut the Christian faith still survives and man is as fully recognized as a free aji;ent in things spiritual as it is ad- mitted he is in tliinjis material. Is that free aj^ency still conceded him in his material affairs? Has the economic principle of the personal disposition of possessions for the satisfaction of desires collapsed, v)r the law's provision that a man nuiy do what he will with his own been suspended, because of ex- isting social conditions beyond the reach of the economic art? Such would seem to be the conclusion of the distinguished scholar who pre- sides at that eminent seat of learning, the Yale University. In his work, "Economics, an account of the Relations between Private Property and Public \A'elfare."' Prof. Hadley subjects the question to this treatment. "Although laws," lu^ says, "prescribing what a man niay buy or sell have fallen into disuse, it must not be supposed that every man exercises his intelligence and jileasure to buy wliat will give him the most happiness." * * * "\ jarge part of the ex- Ijense (►f niost people is regulated not by their own desires and de- mands, but by the demands of the j)ublic sentiment of the com- munity about them." » * * "The standard of life in every family is fixed in large measure by social conventions." * * * >• \). though we have made much jirogress in the direction of economic freedom, it is a mistake to assume that the authority of custom in these matters is a thing of the past. With most men custom regu- lates theii" economic action more potently than any calculation of utility which they ai'e able to make." There would be a loneliness about the result of such a calculation that would severely neutralize its utility, if custom were out of it entirely and individuality its only basis. Isolation is a bane to usefulness. Its saving antidote is comiianionshi]). The cloister and the closet life is a hindrance to development. Nature makes the whole world kin. Man must be within society to be within the pale of economic au- thority. If he chooses to clothe or equij* himself in a strange garb, deny the fashions and disjiort himself against the usages of society, he is outside its jiale and its influence. His jileasures unfit him for social contact. If he is not of contact with his fellows, he is not of society and consequently not a subject for economic discussion. Custom is a king in society without judicial or legislative restraint. Obedience or exclusion is the alternative decree. Obedience would be less onerous if extravagances were curtailed, foibles diminished and waste eliminated. But these are of detail subject to change and controllable by usage, they in no wise impair the structure itself. 10 The social compact makes the state; the state preserves the social compact. Why seek to establish a standard of economic freedom apart from either the state or society? \>'ithont society and its cus- toms and the state and its laws economics has no abiding place. Nomadic life, rural life, sa\age life need no touch of economic direc- tion, seek no help from economic guidance. Out of society where will man find happiness? It cannot diminish his independence to be where happiness only can be found. And then the learned author turns to the present business methods as another formidable barrier to the free exercise of individual judg- ment. "The success of advertising," he declares, "shows how little intelligence is habitually exercised in these matters." Solicitation so induces buyers that, as he deduces it, "three-quarters of them ex- ercise no choice at all." The drummer, the newspaper, the poster, the five cent store and the bargain counter, to follow the professor's own forcible diction, are '^the drums and trumpets" that abuse man's "nominal freedom" and "tell him in stertorian tones what he wants to buy." A baigain like an agreement is a meeting of two minds, or in familiar parlance "it takes two to make a bargain." The satisfac- tion of desire or the right to do what he will with his own is not the purchaser's exclusive right. A like privilege prevails equally with the seller. The over-persuasion of the vendor in no way disturbs the right of the purchaser to think for himself. A horse trade is pi'overbial as a fine illustration of David Harum's paraphrase of the (Tolden Eule, "Do unto the other feller the way he'd like to do unto you. an' do it fust.* In no other transaction are the faculties so sti'aiiied, the wits so quickened, the iie so frequent, except the veri- est guA- venture upon the market. Is the shop-keeper the sole arbiter of \\\.< own bargain counter? ITe may at times lure the unwary, but he is H*» apt to meet not a few. notably of the other sex, ei.ually quick wined v\ith himself. If the merchant be at all fair in his ethics, may uot his experienceassure abetter bargain than not infrequently would be induced by the crude notions of his customers? American women were never better dressed, American children were never better clothed than they are to-day. Americans were never better fed, never better housed than they are in this the close of this wonderful nineteenth century. An excellent fit and tasty pattern are the notice- able feature of the dress of women of every class, and men are a close second. Has not the trader, with his training, added something to these conditions, esjjecially among those whose employment and situation have limited their opportunity for choice? Independent action cannot be measured by a failure to assert it where the right to independent action exists; nor economic freedom be impaired for lack of knowledge or opi)ortunity to best maintain it. 11 For the present, it would seem, that society must be content with observation for a reasonabh' assurance of its betterment in diet and dress, t^^ociology demands a statistical basis, declines to infer and is slow to act on estimation. Its better i»hilos(»j)hical su-itjcs- Tion is that as social statistics i)resent the most delicate (piestioiis. "with facts themselves so elusive as to escape exact expression." cor- rect analysis and interpretation are attended with much hindiance. Statistical data that wouhl express the motives of men's actions are unattainable. If they weie. it is admitted it wouhl be seen how in many oases "the narrow line of family relation nuikes itself felt in the broader manifestation of social life." "The family is the im- portant factor in the j^rowth of population." "Family life is the f(!Uudation of the moral life of the community." Th«^ family, the dwellinii and the waj»e have been in many details subjects for wide sociolo.()."> j)er cent, in the T'nited States. Everywlieie there are more families than dwellinji,s. In the I'nited States there are 1(1.5 jicr cent, more families than dwellinojs. In the agricultural states of the south the excess is very small, while ill ^Massachusett^s it is :\o per cent., in Rhode Island 43.5, in New York 4(>.5. It is, of courst', in the cities where there are the largest num- ber of persons and families to a house. In New York 4(» per cent, of the dwellin«:s have one family. 11 per cent, two families and 43 i)er cent, three families and more. In Brooklyn 51 i)er cent, one family, 23 per cent, two families. iV; jiei' cent, three or more, while Thiladelphia has almost as many houses as families. Of riiiladelphia it may also be noticed that desi)ite tlu> n.arked tendency towards decrease in the size of the family in citi«'s. that <-ity seems less affected by the de- crease, and the number of persons to the family is »'ew Orleans cirjited a liiij^e luonopoly, wliich it was con- tended imiuiired piiviiejies and immunities fundamentalh' guaran- teed; I lie cases sustaining the various statutes of the several states regulaiing the pnntice on ])rofessional titles, upon jtolitical titles." In themselves they represent achievement and stand for personal effort and succes.^. When distinction is once won and worthily won. he who secures it ntM-ei- fails of a'pprecialive recognitii)n. All men who have won dis- 14 tinctiou have contributed sojiietliiug to the state. None more than tliose who write. Where is thei'e more resourceful history, reminiscent and philo- sophic, riper scientific criticism, richer biographical review, than from his vast acquirements John Fiske has supplied to American literature? Where has the culture of the faculty been better pre- sented for public apprecation than by Woodrow Wilson, Moses C^ut Tyler, Franklin Henry Giddings, Benjamin Ide Wheeler? Who would ever have felt, despite of what he knew before, that he ever had close acquaintance with Napoleon and his times, after William Milligan Sloane has so opportunely drawn us to such an intimate relationship with that momentous period? ^Vho will fail to render grateful tribute to John Bache McMaster for the exhaustive research Avhich has enabled him, in such graceful deliverance, to acquaint us so accurately with every phase of the career of our great Republic, whether in the days of its cheering prosperity, or in the days of its grave vicissitudes? Who is richer in variety of attractive themes, presented with instructive method and in pleasing- diction, than Harry Thurston Peck? Where is there better fulfillment of so mod- est an introduction, "This book is an attempt to apply the methods of modern science to the problems of modern business," than in Ailhur Twining Hadley's substantial contribution to economic liter- ature in his "account of the relations betw^een private property and public welfare?" LIBRARY OF CONGRESS 013 477 736 9#