UNI\ ILLINC AT URBP B0( The person charging this material is re¬ sponsible for its return to the library from which it was withdrawn on or before the Latest Date stamped below. Theft, mutilation, and underlining of books are reasons for disciplinary action and may result in dismissal from the University. To renew call Telephone Center, 333-8400 UNIVERSITY OF ILLINOIS LIBRARY AT URBANA-CHAMPAIGN raR 0 4 1983 FEB i* 1 )83 APR 0 3 1! 86 flAY 12 m SEP 1 8 7 002 L161—0-1096 Digitized by the Internet Archive in 2018 with funding from University of Illinois Urbana-Champaign Alternates https://archive.org/details/problemsofcensusOOwrig Problems of the Census. OPENING ADDRESS BEFORE THE liEBiCAN Social Science Association AT SARATOGA, SEPT. 5, 1887. BY CARROLL D. WRIGHT, THE PRESIDENT OF THE ASSOCIATION. BOSTON : WRIGHT & POTTER PRINTING COMPANY, 18 Post Office Square. 1887. I Working People’s Social Science Club Meets at Hull-House, 335 South Halsted Street, every Tuesday evening at eight o’clock. An address of forty-five minutes is followed by an hour of open discussion. . . PROGRAMME . . October 11Chicago Board of Health,” . . . Dr. Ware October 18 —“Growth and Prevention of Filth, Disease, Cholera, etc.” . . ' . . Dr Bayard Holmes October 25—“A Nineteenth Ward Improvement Club.” Various Speakers November 1—“The Homestead Strike,” . . Bishop Fallow® November 8—“Arbitration, Voluntary and Compulsory, ” Hon. C. D. Dixon (framer of the Illinois Arbitration Acts) November 15—“A Defense of the Right to Acquire Property,” . . . . Z. S Holbrooke, LL.D. November 22—“A Defense of the Chicago Board of Trade,” ...... Mr. C. C. Catlin November 29—“Social Theories of Ruskin and William Morris.” ..... Miss Ellen Gates Starr Decmber 6—“Municipal Government,” . . Judge K. A. Otis 3 ’ m M t PROBLEMS OF THE CENSUS. *e as distinct in all O its industrial features from previous periods constitutes a very interesting study. The attempt has been made in the Census of 1885, for the Commonwealth of Massachusetts, the reports of which are now rapidly approaching completion, to ascertain and report to the finest degree the various but distinctly designated divisions of labor, so far as the occupations of the people are involved. Incomprehensible as it may seem, this classification shows over 20,000 distinct designations. This classification, in connection with nationality as shown by place of birth, age periods, and illiteracy, constitutes a fine contribu¬ tion to sociological knowledge. This has been done in Massa¬ chusetts. It may be done for the United States in the future, now that the basis has been laid. The statistics of place of birth and parent nativity are among the most valuable features of the census, a value which is more thoroughly appreciated at the present time through the popu¬ lar discussion of the question of the restriction of immigration. The census renders one perfectly competent to show the absorp¬ tion of foreign elements in various branches of industry, and the extent of the absorption. The Tenth Census, should this question come before Congress, contains the only present means of determining, so far as industry is concerned, the influence of such absorption. There are still sociological conditions which have not been included in the federal census and which it may not be advis- 12 PKOBLEMS OF THE CENSUS. able to incorporate in the schedules. Some of these have been adopted in our Massachusetts Census with success, the most important of them being questions as to the birth rate among foreign and American mothers, this birth rate being brought into comparison with the number of children reared. It embraces one of the most interesting questions for the social scientist, and, so far as I know, the Massachusetts State Census furnishes the only facts of like nature obtainable in this or any other country. It has been a piece of experimental work on the part of the state. It only indicates what can be done in solving scientific questions, when the people are asked to answer inquiries directed to what on the surface may be con¬ sidered matters on which the state should make no inquiry. The extension of special inquiries in the direction named, that is, those aimed at the real inside life of the people, is to my mind perfectly justifiable. The law making power of the state, especially in America, is constantly called upon to exercise greater and greater supervision over the affairs of the people. To do this it has to assume autocratic power. Boards of health can order private dwellings to be vacated, and the con¬ venience of the individual in such cases is sacrificed to the welfare of the community. This spirit prevails in all direc¬ tions. The law making branch of our governments cannot resist the demands; call it socialism, if you choose, the tendency is as strong as it is perceptible, and as inevitable as it is strong. We insist that the dependent classes shall be cared for at the public expense ; we say that individual mem¬ bers of society shall be relieved of special taxation for the support of the dependent, because their support is for the benefit of the whole community. The doctrine is right, and just, and moral. This being the case, the legislature meets the demand. Shall it meet the demand intelligently or blindly? The statistician says he should meet it intelligently, and that statistical science is the chief source of intelligence in such matters. Statistics covering the whole community must be taken through the census. It must comprehend all or none. So, as the inquiries of the census have become enlarged, per¬ sons afflicted with acute and chronic diseases, the blind, deaf, dumb, maimed, lame, insane, idiotic, paralytic, bedridden, and other afflicted persons, have come under the searching inqui- PROBLEMS OF THE CENSUS. 13 ries of the enumerator. The people object to these things when the inquiry comes. They insist upon intelligent legislation regarding them. Popular antagonism to such inquiries must, therefore, be ignored by the legislature, in order to meet the advanced demands of the very people who create the antagonism. The Tenth Census sought information on these points to a fuller extent than ever before, yet the facts secured were so in¬ complete that little or no use was made of them. This should not prevent their repetition to a reasonable degree. So with homeless children and paupers. Our pauperism in¬ creases much faster statistically than actually, because we are constantly classifying new features of pauperism. Statistically, we reach out and take in all that are in any way dependent upon the public treasury. As against the old crude and unde¬ fined information relative to pauperism, we have intelligent, comprehensive statistics, which, in themselves, prove a vast increase in pauperism, because we try to match comparative accuracy with crudeness. The result is against us in this period. We must go on with the statistical research, however, until accuracy is the rule, and the comparisons are made on the con¬ ditions of accuracy and become as intelligent as the facts them¬ selves. When the legislature appreciates the exact propor¬ tions of pauperism, as pauperism includes not only the ordinary condition known as such but that of all the homeless children which must be cared for by society, it can shape its law making with greater intelligence and with more advantage to the community. Social statistics should go still further, and comprehend all conditions of work, of education, and of school attendance, sur¬ rounding the children of the land. All these ramifications of statistical knowledge have been brought within the scope of the census, because the knowledge Avas demanded by the people of the government. The government is wise that recognizes the demand and furnishes the information. Believing, as I do, that advanced sociological knowledge can be, and should be secured through the instrumentality of fed¬ eral and state censuses, I would still insist that the collection of such knowledge, so far as methods are concerned, be confined to the simplest forms possible and to such proportions as to bring it under actual enumeration. 14 PROBLEMS OF THE CENSUS. So far I have treated of social statistics; those relating en- tirely to people, as people, in their conditions in society, and in the relations of individual to individuals and to the State. These features are common in a greater or less degree to all advanced countries, the information concerning them, as I have said, not being always ascertained through the census. A feature of our United States census, which is not common in other nations but which belongs entirely to the American plan, relates to industrial statistics. In 1810 the government undertook, at the time of the enumeration of that year, to col¬ lect information relating to the industries of the country, so far as manufactures were concerned. Eventually, of course, this effort was extended to agriculture, so that now, and in several decennial censuses, the progress of the country, and various facts relating to production, have become important features of our enumerations. Much harm has been done, as well as great good accomplished, by this extension of census powers. It is often urged that Congress has no right to collect such informa- tion, but the constitution clearly gives authority to Congress to take such action as shall be necessary for the general informa¬ tion of the people. How far such inquiries may be extended is a legitimate question. The principle involved is generally acknowledged now as being sound and in the interest of the o o best public polity. I am satisfied, however, that any elaborate attempt on the part of the federal government in the direc¬ tion of securing information of economic importance will be, as it has been, attended with ill success. The extent to which efforts should be made seems to me to be quite clearly estab¬ lished by experience in this direction under federal and state censuses. The problems which can be solved are few but important, and these should be clearly understood before inquiries are made to secure general economic information. I said just now that much harm had been done since 1810 through the industrial features of the federal census. There has been no desire to do harm, but the harm has come as results, first, of imperfect inquiries, or inquiries of insufficient scope; and second, from an indisposition on the pail of manu¬ facturers to give certain information, while perfectly willing to give facts in general, thus creating great inharmony in the results obtained. I have called public attention so often dur- PROBLEMS OF THE CENSUS. 15 ing the past few years to some of the harm which has been done that I feel that I am simply repeating myself now in again reciting the facts. Yet I believe it the duty of all men engaged in any statistical work, or upon economic studies, to do their utmost to secure accuracy in statistical undertakings, and do not hesitate to again, and on this occasion, call public attention to some of the evils of the industrial censuses. The industrial schedule of the federal census, since it was authorized by law and in nearly every census taken since and including that of 1810, has contained inquiries relating to capital invested, raw material or stock used, total wages paid, aggregate product, and the number of employes, in the leading industries of the country. To these simple inquiries the man¬ ufacturers have from time to time made great opposition, although, as a rule, they have supplied information as to all the points involved, except capital invested. The census in¬ quiry on this point has called simply for capital invested. In this form lies the initial defect. In response to this the manu¬ facturer has always been expected to state the capital actually paid in and used in plant of whatever nature and as working capital. That he has given nothing more has not been his fault, for he has not been asked for more. What has been the result? This can be more clearly indicated by a simple illus¬ tration, and for figures I will use exact proportions as they have occurred, simply putting them into round numbers but preserving true relations. Let us suppose an industry in which there are four establish¬ ments, each producing $1,000,000 worth of product in a single year, the total value of the product of the four establishments being, therefore, $4,000,000. The capital invested of estab¬ lishment No. 1 is $1,000,000, this amount of money having been paid in by the proprietors and being sufficient in all respects to cover plant of all kinds, tools, implements, and working capital, for the production of $1,000,000 worth of goods. Establishment No. 2 produces $1,000,000 worth also, but has only $300,000 actually invested. It borrows annually on the average $700,000, giving the establishment the use of $1,000,000 of capital. Establishment No. 3 actually owns $500,000 of capital, invested in proper ways, and borrows $500,000 more. Establishment No. 4 uses $200,000 of its own 16 PROBLEMS OF THE CENSUS. capital and borrows $800,000. Each of these establishments has, as I have said, produced $1,000,000 worth of goods during the census year. The result for the four is $2,000,000 of capi¬ tal actually paid in and $2,000,000 of borrowed capital. In all census returns the $2,000,000 capital paid in would be the whole amount of capital invested returned. The relation then stands $2,000,000 of capital invested, producing $4,000,000 worth of product; the actual fact being, and a fact which has never yet appeared in any census, that $4,000,000 were neces¬ sary in capital for the production of the $4,000,000 worth of goods. It is perfectly apparent on this statement, which, as I have said, is a truthful illustration, that all calculations based upon the returns must be vicious in toto , because $4,000,000 worth of product in the given industry cannot be secured by the employment of $2,000,000 of capital, the necessary capital being $4,000,000. One need not study this simple problem very long to enable him to understand that one of the chief factors of disturbances, or of antagonism, or of misunderstand¬ ing between labor and capital, has grown from this misused term of capital invested. No attempt has ever been made in this country, until that put forth in the Census of Massachu¬ setts for 1885, to correct the egregious error. Credit capital, it is submitted, if used, is just as essential to secure a certain product as the capital that is owned by an establishment itself. Leaving out the factor of the expensiveness of the use of bor¬ rowed capital, of the fictitious or inflated value which is given to the product by such use, and limiting ourselves to the purely economic relations of capital and product, infinite harm has been done by the old method of procedure. To solve the problem of the amount of capital required to secure a given product in each of the leading industries of a country is within the ability of the census taker. The manufacturers have stood in their own light. The manufacturer tells you at once that $2,000,000 of capital cannot produce $4,000,000 worth of ffoods. The conclusive answer to his statement is that such is c the return he has made. He then tells you that census statis¬ tics are vicious, and he is correct in this particular instance. If you attempt to correct this error by asking him to account for his whole capital, that paid in and that borrowed, in fact, all the capital which he uses to secure a given product, he PROBLEMS OF THE CENSUS. 17 antagonizes the work of the state by saying that you are prying into his private affairs. He does not perceive that he has deceived not only himself and his employes but the public generally, and that every argument, conclusion, or deduction, based upon the statistics reported as giving the capital invested in manufacturing, is false in all its elements and consequently exerts a vicious influence in every direction. Great difficulty has been experienced in solving this problem in my own State, in the recent census, through just this class of antagonism. I am happy to say, however, that so far as the matter has been explained to manufacturers and they have comprehended the situation, they have cheerfully complied with the State’s request, until all or nearly all manufacturers of any consequence, those carrying on any business of a suffi¬ cient magnitude to entitle them to the name of manufacturers, have complied with the State’s requirements, and we shall be able, for the first time in the history of this country’s industrial statistics, to show the true ratio of capital invested to product. The difficulty which I have stated is not the only complica¬ tion which exists. For instance, a man goes into the business of manufacturing a line of goods with little or no capital, say $5,000, but he has an excellent credit. He purchases raw material and all his supplies on long time, three, four, or six months, but sells the product of his establishment for cash or its equivalent. In this condition of affairs he may produce say $200,000 worth of goods in a given year, having but $5,000 actually invested. In all census statistics this would be the only sum that would appear, while $200,000 would appear as the value of the product. The truth is he has borrowed of his own customers sufficient capital to produce the $200,000 worth of goods. These illustrations are sufficient to show the viciousness of all census statements which have yet appeared in this country, whether in my own reports or elsewhere, relative to capital invested and its product, in the various leading industries. It does not matter where capital used in the production of goods comes from, whether it be paid in by the proprietors of an establishment, whether it be borrowed by them, or whether it be the result of long time purchases of material; so long as all these elements of capital are essential to secure 18 PROBLEMS OF THE CENSUS. a given product, they constitute capital invested and should be covered by any census inquiry into industrial conditions. Another error which has been made relates to average earn¬ ings, as ascertained by dividing the aggregate wages paid in any industry by the number of employes involved. In all censuses where industrial statistics have been a feature in this country, until the Tenth Census, the question relating to em¬ ployes has simply been the “ number of hands employed.” What is the number of hands employed? Can you ascertain the true quotient which shall represent average wages by dividing the total amount of wages paid during a year in any given industry by the total number of hands employed? I assert that you cannot, for the number of hands employed returned under the old form of inquiry simply meant the number of employes borne on the rolls at the close of the census year, while the total wages paid represented the aggregate amount disbursed in the form of wages to all who had been employed at any time during the same year; the number of people returned might represent a much larger number at the close of the year than were employed at any other period, or the reverse, a much smaller number. In any event, and with the utmost care on the part of the manufacturer, it would be impossible in the answer to such a form of inquiry to state anything more than the number employed at the end of the year, or at some stated period. Under the Tenth Census the form of inquiry was changed so as to bring out a statement of the average number employed during: the year, which constituted the divisor to enter into the dividend of total wages ; but this is vicious also, for the average number does not represent the actual number to whom wages were paid nor in any sense represent the mathematical distri¬ bution of the same amount of money. A very much larger number of individuals might have been involved, or a very much smaller number, during a large proportion of the year. The only way in which the actual average earnings of the em¬ ployes in a large establishment, or in all the establishments in a given industry, can be secured through the census is by the tedious mathematical process of calculating each man’s time and the actual amount paid to him. This I submit cannot be done without such a great amount of labor as to make it practically PROBLEMS OF THE CENSUS. 19 impossible ; nor can a government reasonably require the manu¬ facturers of a community to give such time as would be necessary for a complete and accurate answer to the inquiry. These two questions, capital invested and average wages, illustrate the fallacy of attempting to solve a certain line of economic questions through the census as it has existed. In making this criticism let it be understood that I arraign myself as severely as any one else, for until within a few years I have followed, in all the census work in which I have been engaged, the old form, nor did I fully comprehend the enor¬ mity of the error, the infinite harm it has done and is likely to do, until I undertook to ascertain the relation of capital inves¬ ted to product, with a view to learning the proportion of product which went to capital and labor respectively. It is now also perfectly apparent to me that when census questions relat¬ ing to industry are so framed as to secure thoroughly worthless results, there is no difficulty whatever in taking a census, but the moment they are framed to secure valuable results, the census taker meets with innumerable obstacles and the greatest antag- onism on the part of the very men whose interest it should be to furnish thoroughly accurate statistics. This is a question of educational influence to be exercised by careful statisticians, by securing the confidence of the producers of the country in the statement that no harm shall come from their giving free, full, and accurate answers to all the inquiries instituted by the gov¬ ernment. The only way to secure the best results of an industrial cen¬ sus is to bring the inquiries to simple, easily understood forms, involving individual facts, relieved of all features of compound inquiry, thus avoiding compound answers. These inquiries, it seems to me, may be limited to the following items in general, that is to say, the census should ascertain : First: the capital invested in each industry, the term capital invested comprehending all that I have stated. Second : the value of the principal stock or raw material used. Third : the gross quantity and value of articles manufactured, as represented by their selling value. Fourth : the number of partners or stockholders ; the largest, 20 PROBLEMS OF THE CENSUS. smallest, and average number of persons employed, distin¬ guishing as to sex, adults, and children. Fifth: the total wages paid during the year, distinguishing also as to sex, adults, and children. Sixth : the proportion that the business of the year bore to the greatest capacity for production of the establishment. Seventh : the number of weeks in operation during the year, partial time being reduced to full time. I do not believe there is any need of extending the inquiries beyond these. The forms might be modified or varied, but the principles involved should be retained. Each and every one of the inquiries are of great value, and from them results of the greatest importance to the manufacturers themselves ought to be secured. The inquiry relating to the number of persons employed is the least practical of them all, yet as it is given it is essential to any complete statistics. Such inquiries I would have made at frequent intervals, the first effect of which would be to enlighten the public mind in regard to the supposed loss in the volume of production during years when it is appre¬ hended that an industrial depression prevails. In fact, a state¬ ment at short intervals of the volume of production in the leading industries of the country would go far towards remov¬ ing apprehension as to such depressions. The next great advantage to be gained from a frequent inquiry upon a simple basis like that designated relates to the proportion that the business of the year in any industry bore to the greatest capacity for production of the establishments existing in the same industry. Such an inquiry, when an¬ swered correctly, supplies means for a comparison between the actual business done during the year involved and the greatest business that could have been done if all the establish¬ ments had been run to their fullest capacity, that is, if the greatest possible number of employes that could have been advantageously employed, with a certain plant or facilities, had been employed actively on all the working days during the year to the fullest capacity. Such a line of facts would supply material for the proper management of great productive establishments in such a way that the output could be more scientifically considered, and some of the haphazard methods of production now in vogue eliminated. PROBLEMS OF THE CENSUS. 21 Practically, I do not believe manufacturers would object to such a schedule as I have indicated. There is nothing in it to involve great labor, while it supplies all the material informa¬ tion which it is wise to comprehend in the census, and if the approaching Eleventh Census can secure information in ac¬ cordance with such inquiries, modified, if need be, in form, the influence upon the public mind will be so salutary that I believe the states themselves will eventually inaugurate movements to secure at short intervals the same class of facts. Manufacturing statistics, as contemplated by the ordinary census schedule used in the federal censuses, cannot give such information as to enable one to classify wages to any great extent or to ascertain earnings. Rates of wages, and all facts relating to rates of wages, possible earnings, actual earnings, labor conditions, and various other features, must be left to special investigations. The gross quantity of goods manufac¬ tured should be brought out in the fullest way, in such an account as I have indicated, because quantity is the true meas¬ ure of production rather than value. This and other questions, the value of the answers to which depends upon complete aggre¬ gates, can be secured through the federal census, but the federal census should be relieved of a great deal of the minu¬ tiae of statistical work by state bureaus and offices. In fact, with the twenty-two bureaus of statistics of labor, the boards of agriculture, and offices of industrial statistics, which exist in this country, we ought to eliminate the minute details of inquiry in many directions which have heretofore formed a part of the federal census. Perhaps the greatest difficulty which confronts the federal census taker, and which offers the least possibility of solving problems, is to be found in the agricultural department of the work. The products of various localities differ so widely in their character and kind, that any single schedule framed to comprehend them all becomes in itself impracticable. Yet cer¬ tain facts, like total value and quantity of the great staple prod¬ ucts, ought to be easily ascertained. The question of renting or ownership, of the acreage of the farms, of alien ownership, are entirely within the possibilities of census taking without enlarging the field of operations. Such problems ought to be readily solved. They have been solved for the time being in 22 PROBLEMS OF THE CENSUS. past censuses. As the conditions vary the problems vary, and the intelligence of the government should see to it that the facts sought should be those necessary to indicate the true relations of things in the agricultural field of knowledge. From what has been said it is readily seen that there is quite a range of problems, the elements for the solution of which can only be supplied through comprehensive censuses. As yet, however, no co-ordinate effort has been made between the state and federal governments for systematic work. This question is difficult and yet important. Its importance lies in this reflec¬ tion, that no member of a state or the national government can intelligently discuss the land question, the solution of the im¬ migration problem, the question of how far educational efforts shall be extended, the tariff problem, the questions of cur¬ rency, of railroad transportation, in fact, any question of any great state or national importance, without full and constant reference to the tables of the census reports. This being the case, and census work becoming more and more complicated, as all these great questions come nearer and nearer to the people, how important it is that the whole range of census taking should be reduced to systematic forms and methods. The United States cannot do it all, and do it well. The country is too large to admit of extended inquiries through the methods of enumeration. The States should enlist in the work, and they could do it generally without much expense through their established machinery. They should be called upon by the federal government, but aided to the extent of the results furnished, to do certain things at short intervals rela¬ tive to the enumeration of the people, the ascertaining of products, the ownership of land, and maybe half-a-score of leading features, the federal census itself being confined to those things which reach over the whole country and which may be called purely national topics. Such a system, involving the co-operation of the states, would not only simplify labor, but would reduce the burden in many respects and would cer¬ tainly remove much of the irritation which exists whenever the census is taken; and further simplification should be reached, as I have indicated, through special investiga¬ tions. All census work, both state and national, should leave out of sight every question which can be brought PROBLEMS OF THE CENSUS. 23 under the methods of special investigation, in which aggregates are not essential but in which representative facts are just as important as the total facts. Expensive as have been the censuses of the United States, the money appropriated by Congress for them has been one of the most valuable investments it has ever made. The intelli¬ gence of the people has been raised and social problems have been partially, if not fully solved. The highest form of educa¬ tional work comes through statistical efforts and labors, and the United States government has certainly placed itself in the very front rank in regard to this great field of knowledge. The public estimation of the census increases also. Critical as the press may be, sceptical as the public may become, the census supplies the chief source of information as to conditions, so far as the people in their various relations are concerned. It is unnecessary to make any argument in favor of the census. It is wise to call attention to its defects and to suggest methods by which they can be avoided, by which it can become more efficient, by which increased accuracy shall be gained, and by which the census appropriations of Congress, and of various states, shall be justified. This association, since its organization, has inculcated most advanced ideas on such matters, and its usefulness in the future should far exceed its usefulness in the past. Its influence has been salutary ; by its frequent appeals to the public intelligence to supply sources of public information, it does its best and most valuable work and justifies not only its existence, but its prosperous continuance. / 4 i «