capital? There are general principles governing this distribution, and these form perhaps the most interesting and important part of economics. These laws are grouped by economists under the head, "The Distribution of Wealth." C1 The word distribution, in the sense commonly attached to it in economic writings, refers to the apportionment of the income of a community among its several classes and members. Wherever industrial development is in any degree advanced, there are owners of capital and of land; there are persons using land and capital, who yet are not the owners-tenants and borrowers; there are all sorts of workers, ranging in earnings and in social position from the poorly paid day laborer to the prosperous professional man and salaried manager. What share goes to a person who simply possesses capital or land, and what share goes to an individual for his labor, of whatever sort-these are among the central problems of distribution. A common division of the subject is into four heads, corresponding to four groups in the community whose income is supposed to be governed by different causes: capitalists, landowners, laborers, and, finally, business men or active managers of industrial affairs. The capitalists are said to receive interest, the landowners rent, the laborers wages, and the business men profits or earnings of management. We need not now consider how far this classification is satisfactory; it suffices to indicate the nature of the subject. 16. THE BUSINESS WORLD'S USE OF THE TERMS PRODUCTION AND DISTRIBUTION The meaning of "production" and "distribution" to the business man may advantageously be discussed in connection with the accompanying chart of the classification of business activities from the point of view of the business manager. It is clear that production means to the business man primarily the creation of form utilities it refers to the factory end of his business. Distribution does not ordinarily mean to him a discussion of rent, wages, interest, and profits. Rather it means the process of marketing his goods. Sometimes (generally) it means the whole process, both the phase of creating demand for the goods and that of supplying Taken by permission from F. W. Taussig, Principles of Economics, II, 3. (The Macmillan Co., 1915.) the goods after the demand exists; sometimes it means only the latter phase, physical supply; sometimes (rarely) it means a minor element of physical supply-the transporting of the goods to the Mr. A. W. Shaw has charted business activities thus: consumer. CHAPTER II THE STRUCTURE AND FUNCTIONING OF A. Problems at Issue The structure of mediaeval industrial society is here considered primarily in order to furnish a comparative basis for the study of our present industrial society. From this statement of purpose flows the statement of method to be followed in the study. There are few facts of the mediaeval or of any other period which do not have some bearing, direct or remote, on the industrial life of that time. In a rapid survey we cannot hope to canvass all or even a large portion of the facts. We must select those facts especially useful for the particular purpose in view. We shall be interested, accordingly, in the factual side of mediaeval industrial society only to the extent that the facts are of service in making clear to us the structure, the organization, the functioning, of that society. We shall be interested in the various institutions in the sense that we wish to know how they operated-what their functions were. We shall be particularly interested in the structures, the organizations, the institutions which were the germs of present structures, organizations, and institutions; or, on the other hand, in those which, by contrast, will serve as a foil better to display present features. On the factual side we shall discuss the manor, the town, the gild, the markets, the fairs, the staplers, the merchant adventurers, the church, the open field system, the villein, the freeman, the cottar, etc. But these facts must be interpreted. What parts did these factors play on the mediaeval stage? How well did they play their parts? In so far as they have disappeared, why have they disappeared? Are the parts being played today by other players? Was there anything that may be called "commercial organization," i.e., a mechanism for the "exchanging" operations of industrial society? Was there an industrial organization, i.e., a mechanism for the "producing" functions of industrial society? Was there social control of industrial and commercial activity? Which of our modern "mechanisms and devices" were present in mediaeval society? Such questions as these will concern us. QUESTIONS 1. What is the justification of starting such a course as this with a historical study? 2. Why use England as the illustrative case in our historical study? Why not use Japan or Russia or the United States? What is the justification of starting the study of England at 1100-1300? Why not begin earlier? Why not later? 3. It has been said that institutions spring up to meet certain needs— to perform certain functions. What should you designate as the main functions of the vill? In carrying out these functions the vill manifested certain characteristics. What main characteristics should you list ? 4. Attempt to estimate what proportion of the economic life of that day centered about the vill. 5. What were the outstanding points of difference between the villein and the freeman? In what ways could the villeins become freemen? 6. Who were the cottars? What is their significance for our purpose? 7. Were there social classes in the vill? If so, do they correspond to social classes of today? If there was a wage-earning class, how was it recruited? Was the system typically a wage system? If not, how should you characterize it? Just what is a wage system? 8. "The relation of mediaeval lord and man was a matter of status; that of modern employer and employee is an affair of contract." Explain. Compare the advantages and disadvantages of the positions of the mediaeval and modern proletarian. 9. Give a general account of the life of a mediaeval agricultural laborer. Compare the lot of the villein with that of the unskilled workingman of today. 10. Was the lord of a manor more like a modern landlord or a modern capitalist? How did he get his income? 11. Was there in the vill a landlord class in the modern sense of the term? Was there a capitalist class? Were there entrepreneurs? Should you call the vill system an instance of commercial agriculture or of customary agriculture? What difference is there between the two? 12. We read of the "customs of the manor." Did these customs vary from manor to manor? Did the customs have much significance? Cite instances. 13. Why should we inquire into manorial methods of cultivation? Was there anything in the nature of these methods, apart from their customary character, that made it difficult for any one individual to change his methods of cultivation ? 14. Was there industrial organization in the vill? If so, characterize it. Was there commercial organization? If so, characterize it. 15. Could the manorial system appropriately be termed one of individual exchange co-operation? One of machine industry? 16. Did they know of money in the vill? Was the vill economy a money economy? What is a money economy? Did the inhabitants of the vilk produce for gain? Does the farmer produce for gain today? 17. In the vill, did anything approximating the modern competitive system exist? Was there speculative production? What do competitive system and speculative production mean? 18. "The manorial system was an aggregation of like units; modern industrialism is an integration of a multitude of unlike units into a vast and intricate system." Explain. 19. Compare the manor or vill with the village of today. 20. What factors would cause the vill economy to disappear? Answer in terms of the functions of the vill. 21. Begin at this time a process of drawing comparisons which should be continued throughout your study of the mediaeval period. One helpful method is that of stating from various points of view the character of the change which has occurred since mediaeval times. For example, there has been a change from a subsistence economy to a market economy, from customary industry to speculative industry, from customary industry to competitive industry, from local selfsufficiency to interdependence, from a régime of personal relations to one of impersonal relations. Can you add to this list? 22. What factors explain the origin of the towns? 23. The town played a relatively small part in mediaeval economy. Why, then, should we devote a considerable amount of time to the discussion of town economy? 24. What, if anything, does the rise of the town mean with respect to money economy, competition, producing for gain, speculative market, anonymous production, wage system, commercial agriculture, division of labor? 25. Had specialization been carried as far in the mediaeval town as in the modern town? Support your answer with evidence. 26. What were the functions of the gild merchant? Did the functions meet specific needs of the time or was the gild merchant an unnecessary organization? Was the gild merchant similar to the modern trade union? Was it similar to the modern association of commerce? it similar to a modern employers' association? Was 27. What was the relation of the craft gild to the gild merchant? Answer for the craft gild the questions in No. 26 above. 28. What was the relation of the journeyman gild to the craft gild? Answer for the journeyman gild the questions in No. 26 above. |