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    "source_key": "britannica_1926",
    "source_title": "Encyclopaedia Britannica (1926)",
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    "chunk_id": "1926:turkey:36e324cc67c2",
    "title": "TURKEY",
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    "verified_text": "the republic of turkey is bounded in europe by greece and bulgaria, and in asia by syria, ‘iraq, persia and the union of socialist soviet republics. the member of the union which adjoins turkey is the transcaucasian federal republic, or more accurately two of its constituent states, namely the republics of erivan and georgia. inside the republic of georgia the port of batum, together with that small part of the ‘ cvs lz . — wet) eet t mee ae *. ued sz: mee oe pain. eaten tq, iy ee sp ree hint * rs na ee gan 7 fg ni n oi - 4 ine ots te weearn, m2 ‘ ade? farha? be. ge ee hang 2 ¥ 9 aatalry, ss er ———— 3 ws ear ba eln secei te r eer aioe turkish territory ceded to russia in 1878 which has not been restored to turkey by the russo-turkish treaty signed at mos- cow on march 16 10921, constitutes the autonomous republic of ajaria, the population of which consists for the most part of moslem georgians. the frontier which was last settled was that between turkey and ‘iraq. here the council of the league of nations had de- cided upon a certain line, but it was not until june 1926 that great britain and turkey came to an agreement about it (see mosvut)}. the present boundaries of turkey practically coincide with those claimed in the turkish national pact of jan. 28 1920 (see below), except that no plebiscite has been taken in western thrace, that the batum district remains outside turkey, and that most of the mosul vilayet has now been assigned to ‘iraq. whereas the former ottoman empire contained a number of au- tonomous territories, there is no territory within the present limits of turkey which is not under the direct political control of the government at angora. the contingent autonomy provided for northern kurdistan under the treaty of sevres was not repro- duced in the treaty of lausanne (aug. 6 1924). comparing the territorial extent of turkey in 1926 with that of the ottoman empire in rrr, it will be seen that the losses have been substantial in two quarters. turkey has lost her arab provinces in asia and africa, together with her suzerainty over egypt, and she has also turkey lost her provinces in the balkan peninsula west of the river ma- ritsa, in which the turkish element was in a minority. the core of the empire, including the former capital, constantinople, as well as eastern thrace and anatolia, is intact. the area of the republic is estimated at 494,450 sq. miles. | population —under this head it is practically impossible to give even approximate statistics, owing to the succession of wars and forced migrations since 1911. pending a census, the popula- tion of turkey within her present frontiers at the present time may be conjectured to be between six and eight millions, though turkish authorities give a much higher estimate. as regards towns, constantinople, while ceasing to be the po- litical capital, has somewhat increased in population. smyrna has decreased, owing to the exodus of the greek and armenian minorities, but has retained her commercial position, which de- pends on her geographical situation. next to these two cities, samsun and adana would appear to have the greatest future. angora, the present political capital, is a small town, and is unlikely to increase in population very rapidly, as it has no com- mercial or other economic advantages. as contrasted with the former ottoman empire, the present w adanaz#*\" ‘aintab arya pe <® a a: english miles 501008 kilometres turkish republic displays a relative homogeneity of population, owing to the exodus of greeks and armenians from anatolia and eastern thrace and the immigration of moslem elements from the lost territories in europe, particularly from those which have passed under greek sovereignty. the change is most marked in the smyrna district and in eastern thrace, in both of which the turkish element is now greatly preponderant. the only area in which the population still displays that extreme va- riety which was characteristic of the former ottoman empire is the urban district of constantinople, from which non-turkish ottoman citizens legally domiciled there since oct. 30 1918 have not been compelled to migrate. apart from these non-turkish elements in constantinople and the lazes (moslem georgians) in the northeast corner of turkey in asia, the present population of turkey consists entirely of turks and kurds (see kurdistan). itis also to be noted that with the minorities there has disappeared that non-territorial system of communal autonomy known as the millet system. i. history and external relations in reviewing the history of turkey since 1910 it is important to bear in mind that from the italian declaration of war in sept. 1orr, to the signature of the mudaniya armistice in nov. 1922, turkey was almost continuously at war. the military events of this series of wars are recorded in separate articles (see italo- turkey turkish war; balkan wars; wortd war) and the present article is confined to political and social history. in order, there- fore, to see this in perspective, it must be remembered that dur- ing the period under review turkey has hardly been at peace, and that she has lost half her territory, besides transforming her internal organisation from top to bottom. the main features of the period have been this continual state of war and the revolu- tionary process of westernisation which has accompanied it and has been closely related to it. the relation can be seen in such examples as the emancipation of women, a movement which was greatly accelerated by the necessity which arose during the “world war, in turkey as elsewhere, to extend the field of em- ployment for women in order to release men for military service. the ottoman empire as it existed in 1911 still reflected the ottoman empire as it had been at its zenith. there was still a sultan at constantinople, who was recognised as caliph of islam by a large part of the sunni moslem world (including sunnis as far afield as russian central asia and british india), and this sultan-caliph was still guardian both de facto and de jure of the holy cities in the hejaz (g.v.). thus, although he had been re- duced to virtual political impotence by the revolution of 1908, he was still an imposing figure, and the territories over which the ottoman govt. directly ruled extended to the east coast of the adriatic opposite the heel of italy in albania; to the head of the persian gulf at the mouth of the shatt al ‘aarb; to the southwest corner of arabia in the yemen, adjoining the british protectorate in the hinterland of aden; and to the prov'nces of tripoli and benghazi in north africa. the sultan also retained over egypt a suzerainty, which was valid in international law though vague in its scope and not very effective in its application. the balkan wars.—the first blow whichthe ottoman empire suffered during this period was the declaration of war by italy in sept. ro11. the italo-turkish war resulted in the loss of the north african provinces and in an italian occupation of the dodekanese group of islands off the southwest coast of anatolia. on the other hand, considering how remote these african prov- inces were from the centre of turkish power, and also the fact that italy commanded the sea, the turks put up a surprisingly good resistance to the italian invasion. they persuaded the native population of tripoli and benghazi to make common cause with them, and took full advantage of the difficulties of the terrain and the climate. the course of this war showed that un- der such conditions the military advantages might not be wholly on the side of the more highly organised army, and this discovery, which was made by enver bey in 1911 and 1912, was afterwards applied by mustafa kemal bey in 1919-22, when he successfully defended the turkish homelands in anatolia against the inva- sion of a greek army organised and munitioned by the western powers. the balkan wars resulted in the loss of almost all the islands still remaining under turkish sovereignty in the aegean sea and of the whole of turkey in europe up to the chatalja lines. but constantinople was saved from falling into bulgarian hands, and when the balkan allies fell out among themselves, eastern thrace, including adrianople, was recovered. the european frontier obtained by turkey in 1913 was retained at the end of the period under review. . the baghdad ratlway.—after these losses of territory in africa and europe during the years 1911-3,:the centre of political contention shifted to turkey in asia. here the situation had been dominated by the disagreement between great britain and germany over the baghdad railway, and by the lesser disagree- ment between france and germany over the respective railway spheres of the two powers in northern syria. during the year 1914 both these controversies were settled. on feb. 15 a secret franco-german agreement was signed, under which france gave germany a free hand to carry forward the baghdad enterprise in return for german recognition of french railway rightsin syria and northeastern anatolia. in june 1914 a more important and very comprehensive anglo-german draft convention was initialled in london by sir edward grey and prince lichnowsky, as a culmination to a number of separate agrecments, between 845 the private british and german enterprises concerned, regarding river traffic on the tigris, port construction at baghdad, the exploitation of oil in mesopotamia and the extension of the british aidin railway in western anatolia. under the main agreement between the governments, great britain withdrew her opposition to the baghdad railway project, while germany renounced the extension of the line beyond basra to the coast of the persian gulf unless and until she obtained the consent of the british government. the world war.—these agreements between the powers re- lating to turkey in asia, which seemed at the time to lessen the danger of a new european war over the middle east, were thrown into the melting-pot by the outbreak of the war of 1914 and turkey’s intervention in it in the autumn of that year (see mesopotamia, operations in; palestine, operations in; and dardanelles campaign). it remains here to consider the mo- tives of her intervention and its political consequences. the turkish govt. had invited the german general liman von sanders to reorganise the turkish army immediately after the balkan wars, and he was appointed commander of the first turkish army corps, with enver pasha as his chief of staff, in dec. 1913. according to the memoirs published under the name of kemal pasha (who with enver and talaat formed the triumvirate which governed turkey during the world war) the turco-german alliance, binding turkey to intervene in any general war in which germany might be involved, had already been concluded before the war broke out. whether or not tur- key did find her hands tied in aug. ror4, she had powerful motives for intervention which sufficiently account for the course which she actually took. her strongest motive was the tempta- tion to fish in troubled waters. she had recently suffered great territorial losses. now that the whole world was in the melting- pot might she not recover something for herself, egypt for exam- pler a more rational motive was the fecling that russia was turkey’s mortal enemy, and that therefore turkey ought to do everything in her power to prevent russia from emerging victori- ous over the central powers. turkish public opinion was also irritated by the commandeering of two warships which were on the point of completion in british dockyards. her intervention was clinched by the arrival of the ‘‘ goeben ”’ and “ breslau ” at the dardanelles. germany promptly sold these vessels to tur- key to replace those which great britain had commandeered. the officers and crews were transferred to the turkish service, and they forced the issue by shelling russian black sea ports on oct. 28. the world war produced two general effects, one of which was favourable to turkey and the other unfavourable. the first was the russian revolution of 1917, as a result of which the tsardom in alliance with the western powers was replaced by the soviet govt., which soon came into open hostility with russia’s former allies. thus, the country which had formerly been turkey’s most dangerous enemy was transformed into an opponent of turkey’s other enemies and therefore into turkey’s potential ally. the unfavourable factor was the arab national movement, which was supported politically and militarily by great britain, with the result that turkey lost all her arab provinces in asia. meanwhile the partition of asiatic turkey, partly in favour of independent or semi-independent arab states, but chiefly in favour of the allied powers, had been pro- vided for under the so-called secret treaties (see europe, history, pt. iii.) between great britain, france, russia and italy. in consequence of the russian revolution of 1917, the russian claim to constantinople, the straits and northeastern anatolia was renounced. on the other hand, greece had become a mem- ber of the entente before the war ended. she participated in the occupation of the straits which was carried out under the armistice of mudros (oct. 30 1918), and at the paris peace con- ference m. veniselos put forward claims to eastern thrace and to the vilayet of smyrna. at the peace conference of paris the representatives of the principal allied and associated powers failed to deal with tur- key, partly because they were pre-occupied with questions | gatinople palermo % be 4 : <3) ‘ ae % fone |s benghazi 1g 'y | cyrenaica z y/rssiwa “eh abel gaye / ffs we 4 chgs “halta under austro-hungarian a autonomous since 1897, f coeepaeon from 1878 till (908, ceded to greece (9/3. annexed dy austria-hungary 1908 dodecanese occupied by 2 part of sanjak of novi pazar 9 italy (91, ceded to mantenegre thi3 ceded to ay oy lausanne ty 3 ceded to serbia !wt3 trem , 4 independent since 19/3 under british occupation - since 1878 (4)5 coded to greece 1913 vocedea to great britain by g ceded to bulgaria (93 lausanne treaty. autonomous since 1878, ketroceded to turkey by 4 under turkish suzerasnty it ausso-turkish treaty 1921 tit 1908. pgviavet of mosul | “vastopol black sea arenounced under’, “lausanne tega, wy “y swan jy, . le wa dr a 2 btn fast (cor green ao lurkty under turkish suzerainty at % time of turkish revditien 1908 ylea turkey s7 1926 other countries in 1926 ofiftis yy ly ‘hep yy ys ys “ke 5 a wi e > asir wo ‘, loe vg xo abid &ritish sphere under, #) anglo-turkish agreement 1h!14 . 7 socotra 50° fe) at gulf, “aden of aden omalilp y_jfr.s map showing the several partitions of the ottoman empire from 1908 to 26. concerning germany and her european allies, and partly because they were by this time in acute disagreement over the turkish settlement, and therefore shrank from raising such a contentious issue. meanwhile, though they were in effective naval occupa- tion of the straits, and in effective military occupation of the arab provinces up to and beyond the armistice line of oct. 30 1918, their control was precarious in the turkish homelands of anatolia and eastern thrace. moreover, both the alhed soldiers serving in the east and the allied taxpayers at home were press- ing their governments to reduce as rapidly and as drastically as possible their post-war military establishments in this remote part of the world. the smyrna episode.—in view of all this the supreme coun- cil of the allies sought to maintain their military control over turkey, pending the eventual settlement, by inviting greece to land a military force at smyrna. the landing took place on may 15 1910, under the protection of english, french and amer- ican warships. the immediate motive for landing greek troops at this point and at this date arose from the fact that italy had temporarily withdrawn from the peace conference on account of the adriatic controversy, and that italian troops had then landed at adalia (antaliya) on april 29. both adalia and smyrna had been assigned to italy in april 1917, under the secret agreement of st. jean de maurienne; and though this agreement was tech- nically invalid, italy had acertain moral claim to secure the bene- fits of it, and seemed inclined to make this claim good by inde- pendent action. the greek landing had the very opposite effect to that which the statesmen responsible for it had intended. it was accompanied by atrocities, and it aroused an intense wave of national feeling in the turkish people. the mudros armistice had left the turks exhausted after seven years of war, and dis- illusioned with their former leaders. the triumvirate, represent- ing the committee of union and progress, which had made the revolution of 1908 and had recovered adrianople after the balkan wars, had been compelled to flee the country, and their country- men had been prepared to lose all their remaining non-turkish provinces and even to accept the protectorate or mandate of the united states or great britain. the greek landing produced a revulsion of feeling and a revi- val of energy and the opportunity was seized by a new leader, mustafa kemal pasha (q.v.), who had recently been sent by the constantinople govt. with the approval of the allied authorities to eastern anatolia as inspector general of the forces. under mustafa kemal’s leadership a turkish national congress met at erzerum in july and at sivas in sept., and the resistance of the local turkish population to the greek advance took on a national character. in oct. damad ferid pasha’s ministry, which was favourable to the allies, was replaced by one sym- pathetic to the nationalists. a general election was held, the country returned a new chamber which was overwhelmingly turkey nationalist, and on jan. 28 1920, during the session of this parliament in constantinople, a number of deputies signed the so-called national pact, which immediately became the creed of the national movement. the national pact—in this document the nationalists ac- cepted the loss of the arab provinces south of the armistice line of oct. 30 1918; agreed to the opening of the straits to interna- tional commerce; and proposed to grant to non-turkish minori- ties the same rights as were secured to minorities in europe under the various post-war treaties. on the other hand, the pact demanded, either explicitly or implicitly, that turkey should retain all territories inhabited by non-arab ottoman moslem majorities, which meant not only anatolia but eastern thrace and the mosul vilayet; that constantinople should be given military security; that the millet system and the capitu- lations should be abolished; and that there should be a reason- able settlement of financial questions. the allies and the constantinople govt. first attempted to overcome this movement by force. on march 16 1920, the allies occupied the city of constantinople, arrested a number of prom- -inent turks and deported them to malta. in april the sultan dis- solved parliament, and caused the nationalists to be denounced by the religious and secular authorities of his government. the only result was that such military control as the allies had hitherto exercised in the interior was forfeited, and that the fugitive deputies from constantinople reassembled at angora, constituted themselves a national assembly, and promulgated a law of fundamental organisation, in which they declare themselves to be the sole representatives of the turkish national will. this seems to have been followed by the first overtures between nationalist turkey and soviet russia. treaty of scevres—meanwhile the terms of a turkish settle- ment had at last been worked out by the allied powers at the san remo conference (g¢.z.); in may the draft terms were pre- sented to a delegation of the constantinople govt., whose ‘observations upon them were ignored; and on aug. 10 a peace treaty was signed at sevres as well as a tripartite agreement between great britain, france and italy, which gave partial effect to the secret treaties by laying out a french and an italian sphere of influence in parts of those anatolian territories which under the peace treaty were to be left under turkish sover- eignty. eastern thrace, almost up to the chatalja lines and including the gallipoli peninsula, was assigned to greece out- right, and greece was also given the administration of a zone round smyrna (somewhat smaller than the territory of which she was then in military occupation), subject to a plebiscite at the end of five years. these diplomatic instruments were a dead letter from the beginning. the sevres peace treaty had been signed by the constantinople govt., but meanwhile the whole of turkey beyond the limits of greek and allied occupation had passed into the nationalists’ hands. when the nationalist forces had begun to press upon the french in cilicia and the british at izmid, in the asiatic hinterland of constantinople, the allies had accepted a proposal by m. veniselos for a greek offensive. this offensive had been executed successfully in june and july with british naval support, but though it brought the whole of eastern thrace and large additional districts of anatolia under greek occupation, it did not break either the military or the political strength of the turkish nationalists. in the autumn of 1920 the nationalists attacked the armenian republic of erivan, and at the same time the bolsheviks produced a revolution there -which resulted in the substitution for the previous menshevik govt. of a local bolshevik govt., which brought erivan into the soviet union. these events in the caucasus, together with the expulsion of general wrangel from the crimea, enabled soviet russia and nationalist turkey to join hands effectively against their common enemies, the entente powers. by arrangement with the bolsheviks, the turks compelled erivan to cede about half her territory, including the fortress of kars, which the tsar- dom had taken from turkey in 1878. the nationalists’ position was further improved by the defeat of m. veniselos in the 847 4/ greek elections of nov., and by the plebiscite recalling king constantine, who was not persona grata with the allied powers. in the london conference of feb.—march roar (q¢.v.) the na- tionalists successfully insisted on being represented in addition to the constantinople government. the conference was abortive, but the allied powers recognised in principle that the treaty of sevres would have to be revised, and the french and italian dele- gations negotiated secret understandings with the nationalist representatives. these understandings were repudiated by an- gora as being not sufficiently favourable to turkey. neverthe- less they marked a definite breach in the diplomatic unity of the allies which was never completely healed, and the french govt.’s change of front had important consequences. the french govt. was influenced by several motives: the difficulty of persuading the french people to provide the men and money for the arduous campaign which the turkish nationalists had forced upon france in cilicia; the increasing jealousy felt by france towards great britain, whose naval preponderance gave her the leading rele in the joint occupation of the straits and constantinople; and the french hatred of king constantine, whose return finally alienated french sympathies from grecce. it'rance now looked upon greece as a country governed by an ex-enemy monarch and a country which promised to be a useful satellite to the principal rival of france in the levant. meanwhile yusuf kemal bey, the forcign minister of the angora govt., had gone to moscow and had there negotiated two important treaties, one with afghanistan on march 1, and the other with soviet russia on march 16 ro21. the latter treaty was followed by a supplementary treaty with the three caucasian soviet republics, signed at kars on oct. 13, and a treaty with the ukraine, signed on jan. 2 1922. the greco-turkish war.—the failure of the london confer- ence had led toa renewal of fightingin anatolia. this campaign proved to be the turning point of the war. at the battle of in onii in april the greeks met with their first serious check at the nationalists’ hands. at the battle of the saqariva in aug. and sept. their supreme effort to capture angora and break the ‘turkish nationalist resistance failed when it seemed within an ace of success. the allies had already washed their hands of the affair. on may 18 the allied high commissioners at constanti- nople announced the neutrality of their governments, and desig- nated four neutral zones, one on each shore of the bosporus and the dardanelles, upon which the belligerents were not to tres- pass. on aug. ro the supreme war council of the allies pro- nounced that greece and the turkish nationalists were engaged in a private war, and proclaimed the neutrality of france, great britain, italy and japan in formal terms. at the same time, france once more took separate action. in the autumn of 1921 m. franklin bouillon went to angora, nominally on private business, and there negotiated an agreement (signed on oct. 20), between france and the turkish nationalist govt., under which france recognised that government, evacuated her remaining holdings in cilicia, and retroceded to turkey a strip of territory, including the easternmost section of the baghdad railway, along northern border of the french mandated territory of syria. the publication of this agreement was followed by an acrimonious correspondence between the french and british governments, but the agreement stood. on march 22 1922 the foreign ministers of great britain, france and italy met in paris with the hope of persuading the governments of athens and angora to accept an armistice pend- ing an agreed revision of the sevres treaty. these proposals broke down on account of the angora govt.’s insistence that the greeks should evacuate anatolia as a preliminary to nego- tiations, and as the summer advanced the grecks showed symp- toms of desperation. on july 27, after strengthening their forces opposite the chatalja lines, the greek govt. demanded permis- sion from the allies to occupy constantinople. the allics re- fused, and greece accepted their decision. on july 30, again, m. sterghiadis, the greek iligh commissioner at smyrna, pro- claimed the autonomy of the anatolian territory under greek occupation, with the apparent intention of continuing the 848 anatolian war in the guise of a local greek national movement, in case the greek govt. were compelled by diplomatic pressure to renounce their anatolian claims. the turkish nationalists, however, who had also been hard hit by the life and death struggle of the preceding year, were in little better condition than the greeks for opening another campaign, and at the beginning of aug. 1922 fethi bey, the minister of the intcrior in the angora govt., arrived in london with conciliatory proposals for the neutralisation of the straits under the control of the league of nations. fethi bey failed to obtain an audience with any member of the british cabinet, and on aug. 4 (the last day of the parliamentary session) mr. lloyd george made a speech in the house of commons in which such high praise was bestowed upon the military prowess of the greeks that the speech was subsequently quoted by the greek high command in an order of the day. after staying for about three weeks in london with- out result, fethi bey left for rome. it is reported that, before doing so, he telegraphed to angora the advice to attack. the turkish offensive was launched on aug. 26. the greek army suffered a debacle. the turkish army entered smyrna on sept. 9, and this dramatic decision of the greco-turkish war was accompanied by the wholesale exodus of the greek and ar- menian minorities from the re-conquered territory and by the great fire of smyrna, which bezan on sept. 13—two tragedies which might have been avoided if western diplomacy had shown greater vision during the previous four years. the turkish victory over the greeks had an immediate effect upon the military position of the allies. with the greek debacle, the screen of greek troops which the greek offensive of 1920 had interposed between the turkish nationalist forces and the allied detachments on the asiatic shores of the straits, disappeared, and the allied govts. were faced with the necessity of making up their minds immediately on two points, first, whether they should oppose by force of arms any violation by the turks of those neutral zones which the high commissioners had pro- claimed on may 18 1921, and secondly, whether they should resist or accept the turkish peace-terms as embodied in the national pact. on the former question the british govt. took the initia- tive, and secured diplomatic assurances of solidarity from france; but on sept. 16 the british govt. communicated to the press a manifesto announcing that the british dominioris, yugo- slavia and rumania, had been asked by telegram to promise military support, if necessary, for maintaining the freedom of the straits. this manifesto not only threatened the turks with military action at the line of the dardanelles, but contained no reference to the nationalists’ territorial demands on the european side of the dardanelles, in eastern thrace. it thus offered the nationalists an incentive for attacking the allied detachments which were stationed at chanaq, on the asiatic side of the narrows, before the reinforcements asked for could arrive. the consequence was that on sept. 18 1922 the french govt. ordered the withdrawal of the french troops from chanaq within 24 hours. the italian govt. did the same, and thus, in face of the victorious turkish nationalists, the common diplomatic front of the allies was utterly broken. unity was restored by the exertions of lord curzon, who went to paris on sept. 19 and reached an agreement on sept. 23 with m. poincare, under which both powers accepted the british view regarding the temporary question of the neutral zones and the french view regarding the definitive peace terms. on the same day, in accordance with this agreement, the princi- pal allied powers invited the angora govt. to a peace confer- ence on two bases: that turkish sovereignty should be restored in thrace up to the river maritsa, and that during the interim period, pending the negotiation and entry into force of the peace treaty, the inviolability of the neutral zones should be maintained and the turkish army should be excluded from thrace. on the same date turkish cavalry entered the neutral zone on the anatolian side of the dardanelles, and advanced almost up to the british wire at chanaq. british troops in isolation were thus brought into direct contact with turkish troops, and during turkey the next few days the situation was so dangerous that hostilities would almost certainly have broken out but for the tact and courage of general harington, the british commander-in-chief of the allied forces in the constantinople area, and his represent- atives on the spot. meanwhile the allied invitation of sept. 23, which satisfied the turkish demands on the vital point of the ter- ritorial settlement in europe, eased the tension. on sept. 29 the angora govt. accepted the invitation and suggested a pre- liminary armistice conference. this conference opened at muda- niya on oct. 3 and, in spite of a succession of crises, an armistice was signed on the 11th by representatives of angora and the principal allies powers, to which greece acceded on the 14th. this opened the way to a peace conference, which began at lausanne on nov. 20 1922, and resulted eventually in the signa- - ture of a peace treaty at the same place on july 24 1923. the treaty of lausanne came into force on aug. 6 1924 (see lau- sanne, treaty of). the nationalist govt—the issue of the invitations to the lausanne conference on oct. 27 1922 by the principal allied powers was the immediate occasion for the liquidation of the ottoman govt. of constantinople. an invitation had been sent to the sublime porte as well as to angora, but rafet pasha, who had arrived in constantinople on the rgth as gover- nor of eastern thrace on behalf of the angora govt., com- pelled the porte to withdraw its acceptance of the invitation. on oct. 30 the national assembly passed resolutions against the sultan-caliph. on nov. 1 it declared itself sovereign of turkey, abolished the sultanate and the ottoman empire, voided all offi- cial acts of the sublime porte since march 16 1920, and assumed the right to elect future caliphs itself from among the members of the house of osman. on nov. 4 rafet pasha carried out a coup d’etat at constantinople; the sultan’s govt. resigned; and therewith there disappeared a dynasty and an empire which had existed since the close of the 13th christian century and had ruled from constantinople since a.d. 1453. tor the first time in its history constantinople found itself not the capital city of the state to which it belonged. constantinople was evac- uated by the allied forces and occupied by the turkish nation- alist forces in oct. 1923, after the coming into force of the lau- sanne lreaty. like most revolutionary governments that have passed through trial to triumph, the turkish nationalists were bitter, not only against those of their countrymen who had taken the opposite side, but even against those who had been neutral or lukewarm during the critical years when the existence of the turkish nation had been at stake. the first to suffer was the ex-sultan-caliph, mehmed vahyded-din efendi. on nov. 17 he secretly made his way on board h.m.s. “ malaya,” which conveyed him to malta, and the caliphate (shorn of all but its “spiritual ” functions) was offered to and accepted by ‘abdul- mejid efendi, the cousin of mchmed efendi and the second son of the late sultan ‘abdul-‘aziz, who throughout the crisis had openly displayed his sympathy with the nationalist cause. in addition to the ex-sultan several other prominent opponents of the nationalists, such as damad ferid pasha and riza tewfik bey, the philosopher, fled the country either before or at the time of the nationalist victory. others, including the surviving leaders of the committee of union and progress, remained in discreet retirement. ayear later, the “counter-revolutionary” military courts, which the turkish nationalists had copied from the bolsheviks during the time of crisis, were called back into activity by an incident of which the innocent causes were the aga khan and the ameer ali, the two distinguished leaders of the moderate clement among the moslem community in india. these gentlemen, who, from the armistice onwards, had persevered in the rather ungrateful task of championing the turkish nationalist cause in great britain, and who had publicly based their claim to a voice on this subject upon the attachment of the indian moslem community to the otto- man caliphate, became alarmed during 1923 at the growing ru- mours of an intention, on the angora govt.’s part, to sweep away the caliphate altogether, even in its attenuated form. they had turkey therefore addressed to the angora govt. a courteous letter explaining the indian moslem point of view, but they had sent copies of this letter simultaneously to certain reputable oppo- sition journals at constantinople, and the text had been pub- lished in their columns before it reached the hands of the angora foreign office. the result was that summary proceedings were taken agafnst the offending editors and that there was an open breach between the turkish nationalists and the leaders of the indian moslems (see caliphate). relations wiih russia.—it remains to follow the relations be- tween angora and moscow. the overwhelming victory of 1922, which had brought the principal allied powers, as well as the greeks, to their knees, released the turkish nationalists from their dependence on russian support, and during the lausanne conference there was a significant divergence in the policy of the two powers regarding the question of the straits. turkey and russia had only been brought together by the pressure of their common struggle for life and death against the entente powers. when once this pressure was relaxed, their underlying difference of interest, which was founded on permanent facts of geography, began to reassert itself. moreover, the doctrines of communism and the new proletarian culture which the bolsheviks were at- tempting to build up in russia on that doctrinal basis had no at- traction for the turks, for turks of all parties were under the glam- our of western civilisation in its french form, and the general aim of the nationalists was to transform turkey into a secular- ised bourgeois republic in the image of france herself. thus, from 1923 onwards, there was a tendency for the friendship be- tween turkey and soviet russia to cool off, but this was counter- acted to some extent by the continuance of controversies be- tween turkey and the western powers, and particularly by the anglo-turkish controversy over mosul. the soviet govt. did not neglect the opportunity given to it by the decision adverse to turkey which was rendered on the mosul question by the council of the league of nations on dec. 16 1925. on dec. 17 1925, a new treaty was concluded between turkey and sovict russia, in which either party promised the other its friendly neu- trality in the event of diplomatic or military complications with a third party. if. constitution and administration under the constitution of april 20 1924, the turkish state is a republic, the state religion is islam, the official language is turk- ish, the seat of government is angora, sovereignty belongs with- out restriction to the nation, and the great national assembly is the sole lawful representative of the nation and exercises sover- elgnty in its name (articles 1-4). no proposal to alter or amend article 1, specifying that the form of government is a republic, is to be entertained (article roz). this constitution is as different from the autocracy of ‘abdul- hamid, and even from the constitutional monarchy of 1908-20, as the international position of the turkish republic is from that of the former ottoman empire. the internal revolution, how- ever, has been a by-product of the nationalists’ struggle for in- dependence against greece and the principal allied powers. in the national pact there was nothing incompatible with the con- stitutions of 1876 and 1908. it was the hostility of sultan meh- med vi. towards the nationalists and his complacency towards the allies which led the nationalists at angora to carry out an internal revolution contemporaneously with their struggle against foreign enemies. in the organic law of april 23 1920, the great national assembly constituted a provisional govt. at angora; and the liquidation of the sublime porte in nov. 1922 described above, left the angora govt. without a ri- val in turkey, in fact as well as in pretension. nearly a year elapsed before the formal declaration of the turkish republic was made on oct. 29 1923, when the office of president of the re- public was also created and was conferred upon mustafa kemal pasha. down to this point the government still retained a theo- cratic element, since the caliphate had not been abolished, though the appointment had been placed within the patronage of the national assembly and the office had been shorn of its politi- 849 cal powers. the expulsion of the caliph ‘abdul-mejid efendi on march 3 1924 was accompanied not only by the total abolition of the office which he had held for 15 months, but by a drastic secu- larisation of the turkish statein every department. the religious courts administering the sheri‘ah, or islamic canon law, were placed under the national ministry of justice; islamic educational institutions, from the mosque schools upwards, were placed un- der the national ministry of education; the ministry of evkaf, or religious endowments, was suppressed, the immense proper- tics which it had administered being taken over by other depart- ments of state; and the sheikh u‘l islam, or principal jurisconsult in islamic law, ceased to be an ex officio member of the cabinet. these general measures of secularisation have been followed by divorce reform (which in islamic countries means making divorce more difficult and not more easy), and by a law making the wearing of brimmed hats compulsory for turkish citizens. this question is not so trivial as it might appear, and is intimately | connected with religion. hitherto, in islamic countries, the wearing of a headdress with a brim has been the mark of an infi- del, because it makes it impossible to touch the ground with the forehead in the exercises of prayer, according to the traditional islamic ritual. apart from the secularisation of the state, the most interest- ing feature in the present constitution of turkey is the con- centration of power in the hands of parliament. the assembly.— indeed, the constitution of 1924 explicitly confers upon the turkish parliament powers even more extensive than the british parliament possesses by constitutional custom. the assembly exercises the legislative power directly (article 6), and the executive power through the intermediary of the president of the republic, whom it elects, and through a cabinet chosen by him (article 7). ven the judicial power is exercised in the name of the assembly, though the tribunals are declared to be independent (article 8). the assembly itself executes the islamic law; makes, amends, inter- prets and abrogates secular laws; concludes conventions and treaties of peace with other states; declares war; examines and ratifies laws drafted by the commission on the budget; coins money; accepts or rejects all contracts or concessions involving financial responsibility; decrees partial or general amnesty; mitigates sentences and grants pardons; expedites judicial investigations and penalties; and exe- cutes definitive sentences of capital punishment handed down by the courts. the assembly is elected by manhood suffrage, every citizen over 18 being entiticd to vote and every citizen over 30 being eligible for election (articles 10 and 11). there has to be a general election at least once in every four years (article 13) and a session at least once a year, lasting not less than six months, and beginning automatically on nov. i (article 14). not only the president of the republic or the prime minister, but a quorum of one-fifth of the deputies, may calla special session during recess (article 19). the chamber may hold secret sessions at its discretion (article 20). the deputies enjoy the usual parliamentary immunities. no person may be a deputy and the holder of a public office simultaneously. . the executive power of the president of the republic, as defined in the final text of the constitution of 1924, 1s considerably less than it was in the first draft; but of course the actual power of president mustafa kemal was something very much greater than his con- stitutional position. this is due partly to his personal character and career, but also to the political inexperience of the turkish nation, which can only gradually learn to avail itself fully of those wide seta of parliamentary self-government with which it is endowed y law. the president according to the constitution, the president of the republic is elected by the assembly from among its members for a period equivalent to that of the parliamentary term, the holder being eligible for re-election (article 31). during his term of office the president may not take part in the discussions of the assembly and may not vote (article 32). he has a 10 days’ suspensive veto, but the assembly may re-pass a law over his head by a bare majority vote, and the veto does not apply at all either to constitutional amendments or to budgetary legislation (article 35). the president represents the national assembly as supreme commander over the army (article 40). he designates the prime minister from among the deputies, and the prime minister chooses his colleagues, also from among the deputies (article 44). the members of the cabinet, col- lectively and individually, and not the president, are responsible for the government’s policy (articles 46 and 41). there is also to bea council of state chosen by the national assembly (article 51). social organisation.—in another section of the constitution (articles 53-67), a judicial organisation is laid down on the most approved western pattern, but this is still a programme rather than a reality. another group of articles constitutes a kind of bill of rights, many of the clauses being practically identical with those 850 contained in the minority clauses of the lausanne treaty (articles 37-45 of the treaty). in general it may be said that if the full terms of the constitution are eventually put into effect, turkey will have become a thoroughly western state; but at present this consummation is kept at a dis- tance by the old obstacles to turkish reform, namely, poverty and ignorance. although primary education has been made universally obligatory and gratuitous (article 87 of the constitution), the per- centage of illiteracy is still so great as to make effective popular self-government a distinct ideal, and even higher education in turkey, though it is relatively more advanced, does not turn out trained and educated individuals in sufficient numbers to provide adequate candidates for any but the highest public positions. the poverty of the country, again, precludes the payment of adequate official salaries, and this not only makes the public service unremunera- tive and therefore unattractive compared with those business careers to which the new generation of turks is wisely turning its attention, but it also places at least the minor officials under a con- stant temptation to supplement their emoluments by illegitimate means. _ administrative divisions.—the old ottoman empire was divided into vilayets, or governor-generalships, which were satrapies of the dimensions of independent countries. these unwieldy areas have now been abolished, and the name vilayet has been transferred to provinces or departments of a manageable size. this change was foreshadowed from 1908 onwards by the separation of certain sanjaks from the old vilayets and their erection into independent units in direct touch with the central government. this reform has now been made systematic and universal, and at the same time the name ‘“ sanjak \"' has dropped out. the new vilayets, while they correspond to the old sanjaks in size, resemble the old vilayets and the old independent sanjaks in being in direet touch with the central government, and in being incorporated as juridical persons (consti- tution, articles 89-91). education.—the changes in turkish education since i91!1 have mostly been negative hitherto. before that date education in the ottoman empire was largely provided for by the islamic schools of all grades, from the mosque schools in the villages up to the theo- logical seminaries; by the private educational institutions of the non-moslem minorities; and by foreign educational institutions which were mostly of secondary, and in a few cases of university, grade. all these institutions have suffered from the wars and revolu- tions of the intervening period. the islamic schools have been brought under the control of the secular ministry of education, the minority schools have practically disappeared with the minorities themselves, and the foreign schools have not only been brought under closer government control, but have lost a large part of their clicn- tele, which was formerly provided for the most part by the non- moslem minorities. the turkish nationalists do not question the high standard maintained by these foreign institutions, nor the value of the standard as an example, but they point out with some justice that they had been founded originally with certain religious or political objects which may not be compatible with the free develop- ment of turkish nationality. the foreign schools have been placed on precisely the same legal footing as private turkish schools. they are now subject to government inspection; the teaching of turkish language, literature, history and geography, by turkish teachers approved by the ministry of education, has been made compulsory for a stated number of hours per week, and the compulsory attend- ance of moslem pupils at christian religious exercises has been for- bidden, the catholic schools were closed for some months owing to their refusal to remove the crucifixes from their class-rooms, and there were difficulties between the american college for women at constantinople and the ministry of education over the relation of the new medical department of the college to the medical faculty in constantinople university. on the whole, however, the foreign schools have now successfully surmounted the difficulties which they encountered during the first years after the mudania armistice, and it is encouraging to note that the falling off in the number of non- turkish pupils is rapidly being made good by the increased attend- ance of turks. in turkish national education the chief need is the introduction of an efficient primary system throughout the country; but although this is provided for in article 87 of the constitution of 1924, lack of funds and lack of trained teachers are bound to make progress very slow. on the other hand, the university of constantinople, which was nominally founded in 1900, but not effectively organised until 1918, is showing great activity in the face of financial clifficulties. the old established faculties of law and medicine have been rein- forced by faculties of arts and science, and co-education has become firmly established owing to the not unnatural unwillingness of the professors to deliver their lectures twice over to the men and women students separately. bipliography.—c. price, the rebirth of turkey (1923); a. j. toynbee, the western question in greece and turkey (1923); british blue book, cmd. 1814 of 1923, lausanne conference; records of proceedings and draft terms of peace; british blue book, cmd. 1929 of 1923, treaty of peace with turkey, and other instruments signed at lan- sanne on july 24 1023, together with agreements between greece and turkey signed on jan, 30 1923 and subsidiary documents forming part turkey of the turkish peace settlement; e.m. earle, the secret anglo-german convention of 1914 regarding asiatic turkey, reprinted from polittcal science quarterly (1923); e.g. mears, afodern turkey, exhaustive, with good bibliography and texts of many documents (1924); e. m. earle and h. y. hussein, 7he new constitution of turkey, reprinted from political science quarterly (1925). a. j. toynbee and k. p. kirkwood, turkey, nations of the modern world series (1926). see also afitietlungen des seminars ftir orientalischa sprachen, berlin, jahrgang xx vi. und xx vit., zweite abteilung: westasia- tische studien (1924) for the turkish text of the constitution of april 20 1924, edited by w. bolland, and for a survey of the his- torical background by ef. pritsch. (ne, fe. ns) ii. defence army.—art. 40 of the constitution of turkey states that, “‘ the supreme command of the army is vested in the moral personality of the great national assembly and is exercised by the president of the republic. in time of peace the command of the military forces is entrusted to the chief of the general staff within the lim- its of the corresponding laws. in time of mobilisation the com- mand of the armed forces is entrusted to a person nominated by the president at the proposition of the council of commissars.”’ the land forces of the turkish republic in time of peace amount to: 163 infantry battalions, 42 field, 44 mountain, 5 howitzer and 27 heavy artillery batteries; 48 cavalry squadrons, 13 machine-gun mounted companies; 29 pioneer companies, 8 transport companies, 3 radiotelegraphic companies, 1 light-pro- jector company and 8 field hospitals. ‘these forces are formed in 18 infantry and 5 cavalry divisions composing the ix. army corps, distributed over 3 military inspec- tion regions. each of these comprises 2 to 4 army corps, and is under a chief who is the designated commander of the correspond- ing army on mobilisation. an army corps is normally composed of 2 infantry divisions, 1 heavy artillery regiment of 2 to 4 batteries, 1 squadron of corps cavalry, 1 technical company, 1 transport company, 1 automo- bile company and 1 company for communications and liaison, the vii. army corps has no heavy artillery. an infantry division has 3 infantry regtments of 3 battalions and 3 machine-gun companies each, 1 artillery regiment of 2 field and 2 mountain batteries, 1 pioneer company and 1 company for communications and liaison. the first 9 divisions are numbered from 1 to 9, while the remaining 9 divisions bear different num- bers, inherited from the old organisation. a cavalry division is composed of 3 cavalry regiments of 3 squadrons, 1 machine-gun mounted company and 1 to 2 moun- tain batteries each. the numeration of the cavalry divisions is also inherited from the old organisation. the distribution of these forces is as follows:— military inspection region army corps and headquarters ist angora if. balhkesir iif. constantinople iv. eskishehr 2nd konia i. aftun qarahisar vv. konia 3rd diarbekr vi. toqat vii. diarbekr vu. erzinjan ix. sariqamish ist cavalry division jeziret ibn ‘omar (north of mosul) 2nd cavalry division kirk-kilisse (thrace) 7th cavalry division qara kilissa (anatolia) 8th cavalry division van 14th cavalry division urfa (turkish mesopotamia) in addition, the following other forces exist within the framework of the army corps:— 1. the national guard of the great national assembly, consist- ing of 1 infantry battalion, 1 machine-gun company and i cavalry squadron, 2. 4 frontier commissariats of 4 battalions and 4 machine-gun companies each, in artvin, diarbekr, adana and adrianople. 3. 40 heavy batteries and technical units for the fortified places, namely: smyrna, 8 batteries, 1 projector company and i pioneer company; kars, 12 batteries, i pioneer company and 1 liatson company; erzerum, 20 batteries and 1 liaison company; chatalja, 8 batteries. 4. 16 batteries of coast artillery, at samsun and other sea coast oints. 5. 1 railway battalion, i pioneer and 1 liaison company. turkey service in the army is obligatory. its duration is 1} years in the infantry and transport, 4 years for the navy and 2 years for all other arms. the gendarmerie represents a force of about 25~30,000 men, organised in 9 hying gendarmerie battalions and numerous com- panies, platoons and posts. there are also 5 mounted gendarmerie regiments, one each at angora, chorum, yozghad, el ‘aziz and erzinjan respectively. the recruiting is on a voluntary basis. the equipment of the army is satisfactory, but it is not uniform. the rifles are of diverse types. the number of automatic rifles is only 1,200 to 1,300. the machine-guns are altogether about 800, 7.e., 40 for each division. the ficld guns are estimated to be about 600 to 650, but the reserve of shells is low. the cartridge factory in angora is being steadily developed, but the production ts insufficient. air service —the air service numbers 13 incomplete squadrons of 8 acroplanes each, 2 schools for aviation (land and naval) in smyrna. the instructors are french officers. the air units are concentrated in smyrna, where there are 7 hangars for aeroplanes; others are being planned for construction at afiun qarahisar, mersina, constanti- nople and erzerum. a workshop for repairs exists also in smyrna. the organisation of the meteorological service is not completed as yet and is to includ: 24 meteorological stations. the service will have the assistance of the existing radiotelegraphic stations and those under construction in constantinople, smyrna, qastamuni, gallipoli, sivas, angora, eskishehr and konia. much attention is being given to the development of the air forces by the authorities and the public alike, who are raising donations and subscriptions for this end. the air services for postal and passenger service are only in embryo; it is served by aeroplanes of the german junkers make. navy.—the naval forces are in an unsatisfactory condition. by the end of the world war the fleet numbered about 20 units, thanks to the german battle cruiser ‘‘ goeben ” (which passed to turkey in 1914) and some torpedo boats. by the sevres treaty, only about 10 unimportant units were left to turkey. by the lausanne treaty, however, turkey got back the remnants of her fleet and moreover the liberty for further armaments. turkey intends to entrust to a japanese mission the development of her fleet, within the limits and necessities of a mobile defence to supplement the coast defence. to this end it is intended to repair and arm anew the cruisers goeben, i{amidiye,‘seven gun-boats, two submarines and three torpedo boats. further, within a period of 8 years, the construction is intended of 2 battleships, 2 cruisers of 10,000 tons each, 2 cruisers of 7,500 tons each, 4 destroyers, 12 torpedo boats (of 800 to 1,000 tons each), 4 submarines up to 1,200 tons each and 6 mine-layers. a sea dock is planned for construction at izmid, where an inlet of the sea of marmora has the shape of an easily defensible fjord. two more naval aviation schools are planned (besides that in smyrna); one in constantinople and another in trebizond, and 4 hydroplane stations. in the present situation the fleet can be used only for a defensive purpose, owing to its numerical and technical weakness and to the coastline of nearly 4,000 kilometres that has to be defended, espe- cially the aegean coast line where the opposite islands are in the hands of foreign states; but in the black sea it might to some extent take the offensive. , the mercantile fleet is developing st iad in consequence of the provision in the lausanne treaty that the coastal and port services, as well as the fishing, are an exclusive privilege to the turkish national flag, though exceptions have been made in the case of certain well-known lines, the steamship company “ seiri-sefain \"’ alone possesses a fleet of 60 units. the new turkey.—sport and scout organisations are much in favour now all over turkey, and are helped by the authorities. other facts of a general character that are important from a mili- tary point of view are the reforms of mustafa kemal, which aim at the rousing of national pride and feeling by abolishing obsolete religious and political prejudices and introducing up-to-date methods. moreover, the emigration and expulsion of the ethni- cal minorities have given a homogeneous basis to the state, and in this respect only the kurds in the regions of the mosul fron- tier remain as a source of disquiet for the turks. the pervading conception seems to be that asia minor is the natural stronghold for turkey, whose mission is rather in asia in general, and that thrace is only an advanced defence of the vulnerable points of approach of the straits, in the same sense as calais was one for england. in the coming awakening of the asiatic peoples, asia minor will probably have a paramount military importance at the meet- ing of the ways between east and west, and north and south, and as a reservoir of forces and a place d’armes for offensive ac- tion in any direction. the success in this rele will be, of course, in correlation with the degree of modernisation of the railways and other means of communication, with the creation of industry and all other kinds of economic development on which military opera- 851 tions largely depend. all this is to a large extent lacking for the moment, although efforts are being made in that direction. topography.—from a topographical point of view, the salient feature of asiatic turkey is that it is a plateau, surrounded on three sides by the sea and by high ranges of mountains. this creates a double line of defence, one on the sea coast and another on the mountain ranges, especially on the northern and southern coast. the western coast, with its parallel valleys between the sea and the range of the inland plateau, is the more accessible one. on the east the plateau is guarded by the high armenian moun- tains, extending far towards persia and the caucasus. ina gen- eral way and in the present situation as above described, turkey is more advantageously situated for defensive rather than for of- fensive war. possible theatres of warr 1. northeastern theatre-—against an enemy coming from the caucasus and the black sea, the defence of turkey is highly favoured by the mountainous character of the territory. there are four roads from russia to turkey. the one is along the coast, from batum (terminus of the railway from tiflis) to trebizond. it passes be- tween the coast and the mountain range of lazistan and is not easy for movements. if the turkish flect is able to guard the coast, and on condition that some places are mined and trebizond and platana (pulatkhane) are fortified according to their respective value, this route might be defended successfully with small forces. the second road is from batum and olti along the valley of the river chorokh in the direction of baiburt. the importance of this route consists in the possibility of turning the eventual positions along the line kars- erzerum-erzinjan and of cutting the communication between trebizond and erzerum. the defects, however, are that not more than one or two army corps could move and act in this direction. the most important is the third route, the old classical road from alexandretta on the mediterranean to tiflis and the basin of the caspian sea. at erzerum it is crossed by the other classical road from tehran to trebizond. the railways tiflis-alexandropol-kars- erzerum, tabriz-nakhichevan-alexandropol and the branch line nakhichevan-bayazid-alashkerd are highly important in this re- spect and make possible military action on an extensive scale. this zone contains some important centres, comparatively good roads and the possibility of movement of large forces on a wide front. the defence is favoured further by the fact that both kars and erzerum are successive fortresses, enabling the command to pin the enemy until the decisive blow is delivered at his weak point. the railway in project, angora-qaisari-sivas-erzinjan-erzerum, will be an important addition to the defence when constructed. the fourth route, giving access to armenia and kurdistan, runs from erivan through bayazid, and through the valley of the murad-tchai (upper course of the euphrates) arrives at melazkerd, from where there are roads for erzerum, bitlis, diarbekr and kharput. if the positions at melasgerd and rehova-getchidi (north of bitlis) are fortified, they might serve as a fortified camp for securing the flank.. once an enemy has succeeded in overcoming all the defences in the mountainous country of armenia and lazistan, and has reached the plateau of asia minor, he will have gained full liberty of movement towards constantinople, encountering serious defence lines only at the rivers yeshil irmaq and qizil irmaq. such an advance, however, will possibly imply the detaching of large forces towards diarbekr, for guarding the approach from the direction of mesopotamia, and towards gazi-‘aintab, for guarding the approach from the direction of syria. | \" avaiivat an enemy from the black sea, asia minor has the advan- tage as already mentioned, of its double line of defence—the sea coast and the range of the plateau (the same being on the side of the mediterranean), a first defence being offered on the sea coast and the decisive one on the range of the plateau. hf the network of railway lines is completed, this will give the defence high possibilities for manoeuvre. landings on a large scale could not be expected, there- fore, on the black sea coast. small landing operations, however, are possible in connection with an advance from east to west. even these, owing to the lack of roads for the interior of the country, are possible only at trebizond, kiresiin, ordu, samsun, sinob, ineboli, amasra and eregli. on the coast between sinob and constantinople there is only one high road for the interior of the country, 7.e., ineboli- qastamuni-kanghri-angora. 2. thracian theatre-—owing to the demilitarised zones along the frontiers with greece and bulgaria and on the straits (bosporus and dardanelles), the defence of thrace is important ia the sense of a tete-de-pont, serving for the defence of asia minor itself, along the important water line bosporus-marmora sea-dardanetles, on its european side. a defence far in the interior from the coast of the sea of marmora, t.e., at adrianople and chorli, in some respects might be useful for turkey, but the straits remaining unfortified, the flanks would be highly endangered. the real line of defence remains the line of the bosporus and dardanelles. in this respect the asiatic coast of the sea of marmora has a very important bearing, 852 especially with its numerous fjord-like bays. it should be remem- bered, moreover, that the demilitarised zones in time of war might be quickly fortified by far-seeing and well-armed people. it should be admitted therefore that the turks might be compelled to fortify the bosporus and the dardanelles, these being, further, the points of contact between two great empires —britain and russia. any one of them contemplating an attack on the straits would prob- ably compel the other to iend its help to turkey. the defence might be greatly favoured if turkey was in possession of a large air force and of powerful artillery, which would enable her to defend the straits even with positions of a temporary fortification. 3. aegean theatre.—this coast ts more easily accessible for an enemy than the black sea or mediterranean coast, owing to the fine harbours and numerous parallel roads to the interior far up the pla- teau. the country, moreover, is the richest of all asia minor, it being the cradle of ancient civilisations. but, although the islands olf the coast, the dodecanese, are not in the hands of the turks, with good manoeuvring they might make difficult any landing operation, since good roads and railways are available in these regions. with a reliable fleet of submarines and torpedo boats or mine-layers, and owing to the numerous harbours, they might endanger the sea com- munications of the landed force. further, and after an enemy has succecded in getting hold of all that vast territory, he would have to face the enemy in a decisive resistance at the range of the plateau, on the watersheds of the rivers sagariya and meander. greek ex- perience in 1922 showed the difficultics even for an invader whose enemy was ba.lly armed. 4. mediterranean front.—this coast, from maqri to alexandrctta, has the same features in gencral as the black sea coast, presenting a double defence line. in addition, the range of the plateau, z.e., the lycian and cilician taurus and the anti-taurus are higher and steeper, with no good roads for the interior. suitable places for land- ing are mermeris, magri, andifilo, antaliya (adalia) ‘alaya, selendi and peyas. only the four latter have behind them a suffi- cient hinterland for the development of serious military action. not far from the coast is the road of old military conquerors, konia- adana-aleppo, through the defile of the ‘ cilician gates.” parallel to it is the railway aleppo-~damascus and aleppo-baghdad. a land- ing at mersin would have the a lvantage of enabling the organising of a large tactical lanjing base (tete-de-pont), with greater security and quickness. the region itself, with adana as a centre, although exposed to malaria, is rich and would help the supply of foodstuffs. from that region five operative directions radiate towards diarbekr, kharput, sivas, angora and eskishehr. 5. syrian theatre.—this is the converging point of roads and railways between europe, asia and africa. for an encmy coming from syria, with the desert on the east and the sea on the west guarding his flanks, it would be possible to create a sccure place d’armes from which he might dominate the road to africa, cut the road to baghdad, or else undertake an advance towards konta, qaisari, kharput and diarbekr. further, the bay and harbour of alexandretta are very safe. 6. mesopotamian theatre-—-it is divided by the railway adana- mosul into two halves. the northern one, in the possession of turkey, is inhabitable and with sufficient roads. on the north it is dominated by the armenian taurus, standing between the euphrates and tigris like a snow-covered wall in face of the immense plains of syria and mesopotamia. the possession of this wall between bitlis and kharput ensures the sally-ports from the anatolian plateau towards aleppo and mosul. the southern half of this theatre in- cludes the territory south of the railway, which is part semi-desert, part of desert and mountainous character. the territory between birejik-meskene-mouth of the river khabur to jeziret ibn ‘omar, is of semi-desert character, although yielding good produce. it is inhabited by nomad arabs and kurds. military operations are very difficult, almost impossible. the same characterisation applies to the territory along the tigris, from jeziret [bn ‘omar to jebel-hamrin, south of mosul. in the remaining part, from the mouth of the river khabur to baghdad, the territory 1s desert, and only west of mosul, on the mountain range of sinjar, where the oil deposits are situated, nomads live in the summer, coming back in the plains in the winter. the importance of this theatre of war is that from here it is possible to cut the road from kars to angora, or else, on the contrary, to undertake an advance towards the persian gulf. the remains of old fortresses in diarbekr, mardin, etc., show that in old times here was a theatre of serious operations. in an advance from ‘iraq, the de- fence of turkey would be favoured by the mountains of hakiari, tur-abdin, diarbekr and qaraja dagh, being the forefront of the armenian taurus, where the decisive operations of a campaign could take place. 7. persian theatre.—i\\n its northern part it has a first-class route for movement. this is the old road from the iranian plateau to the black sea, from tehran, through tabriz and bayazid, to trebizond. the other routes are of a secondary importance and do not lead to important centres; besides, they pass often through waste land, from tehran to van there are two roads, the one going through tabriz-dilman and the other through urmia-bash qal‘e. in a general way, this theatre has a relative importance if only for use in connection with operations from the caucasus to angora or from armenia to ‘iraq. se p: turkey iv. financial and economic history population.—according to the official registers the population of turkey in 1925 was 13,560,000, but as there has been no census in recent years, and as the registries of 135 kazas were destroyed by enemy action, the exact population is not definitely known. considerable changes have taken place in the composition of the population in some districts, and since the exchange of population agreement between turkey and greece, 397,000 immigrants have moved into turkey and have been settled in different localities. the turkish govt. has endeavoured to increas the health and strength of the population, and special measures have been taken by the ministry of public health for the prevention of infant mortality, tuberculosis and malaria, which are having their effect on the population figures. finance.—in march 10912 an act of public accountancy (loi de comptabilite) came into operation. this act based the budget system and the accounting methods of the state upon sound fi- nancial principles adopted by most european states—in particu- lar, the authorisation of expenditure by parliament, the annual budget, proper auditing of the accounts and the centralisation of revenue in the ottoman bank. the financial reforms made by the ottoman government have been maintained by the turkish republic, and the act of ro12 is still in force. during the first year of the nationalist govt. financial control was exercised bv a group of deputies elected from the great national assembly, but in 1923 an act was passed establishing an audit department (divan-i-muhassebat), the members of which are specially nominated by the assembly and responsible to it. public accounts for the period under review show the follow- ing results:— supplementary ordinary ; revenue year! expenditure and seg orciiary estimated in the authorised expenditure budget : ; authorised cs a a i ly. roli<2 36,233,000 3,044,000 28,445,000 1912-3 33,997 000 13,131,000 30,514,000 1913-4 33,997,000 14,136,000 40,514,000 i914-5 34,012,000 16,300,000 32,607,000 1915-6 35,057,000 18,032,000 26,836,000 igl6-7 39,724,000 44,249,000 25,012,000 1917-8 53,304,000 47,435,000 23,584,000 1918-9 51,969,000 79,748,000 34,016,000 igig-20 51,969,000 40,761,000 34,016,000 1 it will be seen that the estimates show a constant and heavy deficit, which, however, must not be taken at its face value, as in practice considerable amounts of the money annually allotted to various services were not expended. the italian war in 1911 and the balkan war in 1912 were dis- astrous for the financial situation of the empire. the budget def- cits were covered until the world war by loans obtained from france and elsewhere; but during the world war by loans and advances obtained from austria and germany and by certain war taxes. in sept. 1914 the capitulations were suppressed, which enabled customs duties to be increased and a tariff to be drawn up in con- formity with the economic and financial needs of the country. when the government of the great national assembly estab- lished at angora (april 23 1920) took the financial administra- tion of the territories under its rule, it was unable to draw up a regular budget as the nation was engaged in repelling invasion. hence in the years 1920-4 the country was financed by advances which were under the direct supervision and control of the finan- cial committee of the assembly. the treasury accounts, with the “loi de reglement definitif ’ for 1921 and 1922, were pre- sented to the assembly and published in 1925. according to the reports of the audit department of the assem- bly, the allocations for the period march 1924-april 1925 were £t. 176,993,431, of which £t. 32,287,000 were not actually ex- pended. the revenue received in that year was ft. 1 37,719,096. the estimated revenues for 1924-5 and 1925-6 are given in the table on the following page. 1925-6 1924-5 a ie ‘aie direct contribution : : 43,930,500 ! 39,870,500 stamps and registration duties 3,210,000 5,445,000 indirect contribution . ; 28,170,000 35,655,000 monopolies ; 16,044,100 27,800,000? commercial and industrial state undertakings . : 703,000 1,720,000 domains ; 4,480,000 14,965,000 various receipts 5,424,010 8,731,354 consumption tax . ; 14,461,000 16,360,000 extraordinary tax for war 12,792,000 2,500,000 | total® 129,214,610 153,046,854 1 {t. 27,500,000 of this item was obtained from tithes. to free the peasant from the payment of a taxon all crops which he consumes, or which he can dispose of in his district, an act was passed in feb. 1925 suppressing this tax and replacing it by a six- to eight-fold in- crease of the real property tax, to allow for depreciation of the cur- rency; and by another tax equivalent to 8-10°% of the value of the crop directed to port or station. 2 under an agreement between the government and the tobacco regie the concession was to expire on march 1 1925. the assembly promulgated a provisional law authorising the government to administer the tobacco regie in its existing form for a period of one year, subsequently extended for three further years. a _ state monopoly for the sale of cigarette paper was established. $3 in comparing these figures with those given before the deprecia- aoe ; the currency must be taken into account (see under currency elow). currency.—no other paper money has been issued than that put in circulation by the ottoman empire during the world war. the amount issued then was £t.160,018,665, of which £t.17,270,- 101 has been withdrawn. at. the beginning of 1926 the turkish exchange on london was 912 piastres to the pound sterling, com- pared with a par value of 110 piastres. in 1924 and 1925 the highest rates were 888 and 965 piastres respectively and the lowest rates 790 and 805 respectively. banking.—in april 1925 the concession of the ottoman bank was extended, subject to a number of new conditions, until march 1935. the privilege of the bank to issue notes was con- firmed, but is only to be exercised when the turkish lira is re- established on a gold basis. the right of the state to establish a bank of issue is expressly maintained. banking is progressing in turkey, and new banks have been founded with turkish capital. the most important of these are ish bankassi, or banque de travail (capital £t.1,000,000), banque de commerce et d’industrie (capital £t.1,000,000), akhissar tobacco bank (capital £{£t.500,000), akshehir bankassi (capital £t.1,000,000), and a new bank of turkey for mining and industry established in april 1925. ish bankassi, since its establishment, has opened three branches in the chief cities of turkey, and has given assistance in forming many industrial, financial and mining companies. it also co-operates with foreign capitalists in obtaining concessions for railway construction, timber, mining and industrial enterprises. there is a serious credit stringency which hampers industry and commerce. while the total of exports and imports exceeds £t.500,000,000 annually, the credits given by the banks to trad- ers do not exceed £t.49,000,000, and turkish traders have to pay very high rates of interest. branches of foreign banks operating in turkey extend facilities to their own nationals trading there, but not as a rule to turkish traders, even where the security is good; hence the need for a national credit institution is keenly felt. communications.—in 1914 the total length of the railway sys- tem of the ottoman empire was 6,733 kilometres. asa result of the world war and subsequent adjustments there was a net loss of 2,640 km. of railways. the greatest importance is attached by the govt. of the republic to railway development, and ismet pasha’s cabinet is doing all it can to further the construc- tion of new railways, which are to be managed in future by the state. a number of railways are in process of construction and several are nearing completion, amongst which may be mentioned the angora-sivas line (620 km.); the samsun-sivas line (410 km.); the angora-eregli line (370 km.). in spite of comparatively turkey 853 small experience, the turks have shown skill and ability in rail- way management and construction. the total length of turkish railways worked in 1925 was 4,407 kilometres. a griculture—turkey is essentially an agricultural country, but the development of the very considerable natural wealth of the land has been hindered in the past by inadequate trans- port, by the tithe on gross produce and by very backward meth- ods of cultivation. the govt. of the republic is engaged in remedying the first defect by the construction of railways; the tithe has been transformed into a tax on farm produce after it has been brought to markets other than the one local to the place of growing, and at the same time the land tenure, inheritance and mortgage laws are being modernised; finally steps have been taken to improve seed selection and to introduce agricultural machinery. twelve agricultural schools were established in 1922 and 1923 in different citics, and model farms have been started at siverek and diarbekr to encourage the use of scientific methods by the peasants. in 1924 two sericultural institutions and a seed- selecting station were founded, anda european specialist was en- gaged forthelatter. financial assistance is given by the ministry of agriculture to those engagcd in the industries of dairy farming, silkworm rearing and bee-keeping. the use of machinery is increasing, and the farmers who em- ployed primitive methods are now utilising modern machinery. there are in turkey 3,700 ploughs, 70 threshing machines, 1,223 tractors, 96 motor ploughs and 1,505 sorters, and large numbers of machines have been imported for the improvement of seed. nine repairing shops have been established, and mechanical de- partments have been attached to the agricultural schools of angora and adana. in the past great damage was done to the crops by locusts, and no effective measures were taken till 1915, when a german expert was engaged and the locusts were practically exterminated. during the greek occupation the locusts increased again and wrought much harm. in 1925 the same measures were put into operation, and it 1s probable that in a few years the districts infested will be freed from the pest. the area under cereals in 1924 in 369 kazas is shown in the following table:— proportion} proportion! production in jreleat hectares under to total i913 in ies each crop area bushels wheat 1,683,501 50°30 2:60 152,000,000 barley 956,67q 28°58 i-47 93,400,000 oats . 77731 2:32 o-ull 12,700,000 kablidja 78,407 2°34 o-10 6,714,000 nlaize 296,613 8-06 0°45 21,460,000 rice. 17,971 0-54 0-02 1,892,000 nlillet 79,259 2:37 qo-12 4,715,000 sve. 3 . 114,428 3°42 0:17 11,971,000 mliscellane- | ous . 69,206 2:08 0:10 1,463,000 total 3,373,786 |, 100-00 5:16 306,315,000 the area under cereals in 1924 was 26°%% less than in 1913. the following estimate shows the value of the pre-war and 1923 production of the chief agricultural products exported by turkey:— i913 value 1923 of production value of production 1,000 { t. 1,000 £ t. (gold) (gold) | (paper) | opium 1,000 562 | 4,500 mohair 640 400 3,200, | wool 640 150 1,200 | cotton 840 62 5,000 nuts 1,760 1,025 8,200 tobacco : : ,200 2,220 17,600 silk . : : 1,000 175 1,400 total 1hicre again the changed value of the lira must be taken into account. 9,080 854 minerals. —the legal conditions under which minerals and oil can at present be prospected and extracted are now (1926) under consideration, and amendments are proposed which it is hoped will increase the interest of capitalists, and hasten the develop- ment of the country’s resources. mining experts have discovered that the land running parallel to the black sea from eregli to ine- boli is rich in coal, and that quantities of copper, lead, chrome, emery, tin and manganese are to be found in different parts of the country. the concessions of the copper mines of ergeni, the lead mines of bulgardagh and the chrome mines of kiutahia have been given to two companies with capitals of {t.3,000,000 and £t.1,000,000 respectively. the turkish govt. has supplied 51% of the capital of these companies, while 49% is provided by german capitalists represented by the metallgesellschait and the deutsche bank. in 1924 the chief mineral output of turkey was: 14,805 tons of emery, 132 tons of antimony, 10,007 tons of bandermite, 3,700 tons of lead, 450 tons of copper, 2,500 tons of chrome ore, 769,100 tons of coal, 200 bottles of mercury and 988 cases of meerschaum. industry —the government of the republic is doing its ut- most to encourage the expansion of industry, and for this reason has exempted industrial factories built by turkish subjects (the capital may be foreign) from income tax and real property tax. the importation of materials for use in the construction of fac- tories, and of a number of other important raw materials not found in turkey, has been exempted from customs duties. spe- cial railway and other facilities have been given in the case of sugar to encourage the erection of sugar factories, and in general the policy of the gdvernment is to favour the setting up of factories which draw their raw material (e.g., cotton, wool and sugar) from within the country. since the establishment of the republic 60 new factories of different kinds have been built. the following table shows the output of carpets in smyrna and the surrounding district :— sq. arshins! before the world war . . . during the greek occupation 1919-oct. 1923 ; after the greek evacuation oct. 1923-oct. 1924 . 1,256,000 oct. 1924-oct. 1925 eo « 2% 4a che of ; 1 an arshin is 26-96 inches, shipping.—by the lausanne treaty the right of cabotage (coastwise shipping) is confined to turkish ships, and as a result of this provision turkish ships have increased in numbers, but their progress is hindered by the shortage of credit. in 1925 the number of turkish steamships was 170 of 95,286 tons and the number of sailing vessels 3,745 of 115,767 tons. the following table sets out the port traffic in 1924 at the prin- cipal ports:— foreign ships port and turkish ships dependencies no tonnage no tonnage constantinople 30,146 | 1,833,971] 4,019 | 5,445,110 smyrna . 8,451 616,355] 2,330 | 1,356,566 samsoun 19,949 |3,541,060} 493 | 856,041 mersin 5,802 257,439| 2,112 736,550 6,248,825 8,394,267 commerce.—the principal exports from turkey are tobacco, dried fruits and nuts, wool, mohair, opium and cotton, while the principal imports are manufactured products such as cotton goods, woollen goods, metals and machinery, leather and leather goods, etc. the following tables show the values of the chief im- ports and exports and their distribution:— acorns cotton bales tobacco 128,000 130,000 135,000 6,900,000 10,000,000 23,000,000 9,500 51,800 27,000 1 one yuk is approximately 220 kilo. * greek occupation. turkey import and export by commodities 1923 six months of 1924 import export import export {t. ats £1, rt. cereals, etc. . 14,462,731 | 1,632,458] 11,149,885 qi1,218 fruit, vege- tables . 2,071,952 | 20,833,387| 1,096,946] 9,438,827 provisions. 15,094,098 255,068} 8,590,971 | 1,361,196 tobacco 188,501 | 20,482,517 238,017 | 17,264,961 cotton goods | 53,939,768 | 6,701,193 | 28,289,277 | 4,294,193 manure . 408 6,950 6,809 53,762 woolens . 8,897,278 | 8,214,554| 5,516,738] 5,243,234 metals 7,750,966 | 2,179,532 | 5,619,610] 2,110,736 machinery. 1,336,478 130,863 | 2,039,064 54,651 direction of foreign trade imports from exports to six six 1923 months 1923 months 1924 1924 at va ee 1 he italy 28,351,941 | 17,736,405 | 15,200,671 | 13,740,738 england . 25,063,477 | 14,919,432 | 15,756,670] 6,445,273 ‘rance 13,229,353 | 8,899,734] 10,504,219] 8,227,250 germany : 9,222,073 | 7,201,385} 7,625,775| 7,532,501 united states 11,059,352 | 5,047,978! 6,749,602; 4,000,399 syria 7,880,087 | 3,337,542] 6,045,927] 2,070,003 egypt 6,682,512 | 2,837,109) 2,475,186] 1,956,530 belgium . 7,413,836 | 3,509,880] 2,226,994] 1,196,692 russia 3,039,! 66 3,583,606 1,732,445 867, il 8 cyr) public debt—~by art. 47 of the lausanne treaty it was stipulated that the debt charges on the pre-war foreign debt should be allocated between turkey and the territories detached from the ottoman empire, and that the allocation should be made within three months of the coming into force of the treaty. the council of the ottoman debt accordingly allocated the annui- ties and notified the states concerned; certain states protested against the allocations, and the questions in dispute were re- ferred to the league of nations, which appointed professor eu- gene borel as arbitrator. on april 18 1925 he gave his decision establishing the share of each state. under this decision the shares are distributed in the following proportions: turkey 62-25 %- greece 10°57%; serbia 5:25% (but serbia refuses to be re- sponsible for any part of the ottoman debt and has withheld her signature from the treaty of lausanne); syria and greater lebanon 8-17 %; ‘iraq 3-96 %; palestine 2:47 %; bulgaria 1-63 %} albania 1-57%; italy 0-23%; other arab states 3-90%. representatives of the french, british and italian bondhold- ers met the turkish delegation in paris in july 1925, to arrive at a modus operandi regarding the payment of the turkish quota, the nominal capital of which is £t.84,597,495, and to discuss any concessions that might be granted in view of turkey’s financial condition. but by the end of feb. 1926 no satisfactory agree- ment seemed possible whilst the attitude of turkey was main- tained. an incomplete payment by palestine was the only payment made since the ratification of the treaty. none of the states had in 1926 furnished the guarantees required by the treaty. the french govt. had proposed to offer the customs receipts on behalf of syria and the lebanon, and the greck govt. offered the surplus of the revenues assigned in greece. the turkish government continued to appropriate the revenues assigned under the decree of mouharrem and the other loan contracts.! 1 at the end of may 1926 it was announced that the negotiations which had been going on for nine months between the turkish government and the bondholders in paris for a settlement of the turkish unified debt had broken down. under the decree of mouharrem (of 1881), any interpretation of the terms of the contract with the bondholders was to be referred to arbitration. by the treaty of lausanne the turkish share of the debt was reduced to £7.84,597,495, but no payments have been made, the turkish government having appropriated the assigned revenues to public purposes pending the settlement of the dispute. (ed, £.b.) turkmenistan—turnover tax turkmenistan, a soviet republic in central asia. siberia; turkestan.) turnover tax.—a turnover tax, in its fullest sense, may be defined as a gencral excise tax charged cumulatively, though at a low rate, upon successive turnovers of goods (whether raw materials, goods in course of manufacture or finished articles) and services, or, expressed in different words, upon the gross receipts of producers, distributors, professional and commercial business men, etc. like other excise duties, the tax is an indirect tax intended to fall ultimately upon the consumers of the goods, etc., in respect of which the duty has been levied. general sales taxes always spring from urgent financial necessity, and accord- ingly the demoralised condition of national finance, following the world war, led to a considerable crop of turnover or sales taxes. for example these were imposed in france, belgium, italy, germany, czechoslovakia, hungary, rumania and the serb-croat-slovene state. the scope of the various turnover taxes in force varies very greatly. some extend to all transactions in goods, whether wholesale or retail. others are limited to wholesale transactions in goods only. usually there is a flat rate for all transactions, though differential rates for specified transactions are sometimes found. the opportunity 1s occasionally taken to combine luxury taxes with a turnover tax. exemptions are granted of various kinds and weights, while services may be taxed here and ex- empted there or divided into categories receiving special privi- leges elsewhere. the treatment of imports and exports varies; public utility undertakings are exempted in one country and are liable in another. this extraordinary complexity makes it impossible to describe the actual taxes in force and, accordingly, in the paragraphs which follow, consideration is limited to the main principles of the tax. (see characteristics of the tax just as an income tax applies in theory to all income, so a turnover tax is applicable in theory to all sales of goods and services. accordingly, subject to exemptions and variations, the tax attaches to almost every transaction of life and to every ingredient in those transactions. its second feature is its cumulative operation. raw materials, out of which the finished goods are fashioned, pass through many processes of manufacture, treatment and distribution. normally, these various processes are carried out by different classes of business, owned by different concerns. a turnover tax is payable on every transfer of the goods from the first sale of raw material down to the final sale to the ultimate consumer of the finished article. value is added to the product at every stage and, accordingly, the amount of the tax grows larger at each transfer, so that an article finally sold, after passing through five stages or processes, will have borne tax five times, each transaction after the first including the price and also, of course, the tax on preceding transactions. in this way the tax, although levied at a low rate, accumulates until the total tax on the final selling price may be anything from three to six times the amount of the nominal rate. the third characteristic of the tax is that it is an indirect tax which is intended to be finally borne by the ultimate home con- sumer. it follows that, in general, a turnover tax cannot, save in exceptional conditions, be levied upon foreigners, and further, that the tax, in so far as it falls upon goods to be exported, must either be remitted or must fall, contrary to the intention men- tioned, upon the exporter. broadly speaking, therefore, a turnover tax may be defined as an ad valorem tax, imposed by way of a fixed percentage upon the price or value of:— (a2} every sale of goods, except sales of capital assets, falling with- in the broad category of investments, and export sales; (6) every passage of goods, while in the same ownership, from one defined stage of production to another; (c) every service rendered, except those rendered by employed persons and those rendered by central or local governmental authori- ties; and (d) every import of goods. 855 exempiton of exports.—as a turnover tax is intended to be a consumption tax, capital investment sales are only excluded from its scope because they are not consumable. a turnover tax cannot normally be made to fall upon foreign consumers, and for this reason most of the taxes in force provide for the exemption of exports. if no provision for exemption is made the total tax falling upon exports must rest upon the exporter and as a competitor in world markets, where price is determined by the competition of foreign producers, he is badly handicapped. in this connection entrepet trade deserves special mention, as the imposition of a turnover tax on the gross values of goods entering a country in the course of that trade would, if imposed on the forcign vendors, almost immediately drive such trade to other countries, or, alternatively, if the tax is left as a burden on the domestic traders concerned, it would so penalise them as to make the business ynprofitable. the case of vertical combines.—the condition that the tax should apply to every passage of goods while in the same ownership, from one defined stage of production to another, is essential if equality is to be preserved between different tax-payers and different forms of business organisation. while theoretically essential, in practice such a provision necessarily gives rise to grave difficulties. the movement towards large scale organisations in which two or more, or all of the many processes alfecting any defined class of goods are carried out within the ambit of one concern, has become of such importance that, on the one hand, nothing should be done to check the economies and wealth-producing capacities of such organisa- tions, and on the other hand, nothing should be done which should give them a striking differential advantage over their competitors through the operation of a turnover tax. in order, therefore, to preserve equality in taxation it will be necessary, in the case of com- bines, to assess the tax on an estimated turnover for the various stages of manufacture so combined, in order that the tax levied on the final finished product should be the same as though that product had passed through the hands of a normal number of concerns. inclusion of “ services.’’—the inclusion of services within the scope of the tax is also essential. the retail price of coal consists almost entirely of the remuneration of the services of the persons who have won it, transported it and distributed it, including in those services those rendered by capital, management and labour. more- over the supply of goods and services is almost inextricably mixed. the dentist supplics much service with one or two false teeth. the watchmaker does the same when he provides and fits a new main spring to a watch. in practice it is impossible to sever the price of services from the price of goods when they are simultaneously pro- vided at a single inclusive price. finally, to exclude services would cut deeply into the productivity of the tax. on the other hand, the services of employed persons, remunerated by salaries or wages, are normally excluded from the scope of a turnover tax, because the employee is normally not able to pass on the burden of the tax. if he shifts it at all he can only do so back on his employer and in that case the employer would shift the burden again by loading it on to the price of his goods or services, and the cumulative character of the tax would be greatly increased. similar reasons attend the normal exclusion from the scope of the tax of services of central and local governmental authorities. as the tax is of the nature of a general excise imposed upon every business transaction within the country and accordingly upon all commodities originating within the coun- try, it follows that all goods imported must be brought within the scope of the tax. accordingly, a turnover tax involves general cus- toms taxation covering every article within the scope of the turnover tax. exemptions for food.—nothing in the principle of a turnover tax calls in theory for the exemption of food, and as the bulk of most nations consists of the working classes whose main expenditure is upon food, the exemption of food from the turnover tax at once makes an enormous inroad into the universality and therefore into the yield of the tax. nevertheless the objectionable character of a general sales tax extending to food has led tn most cases to wide exemptions in favour of essential foods. in practice this exemption necessarily gives rise to considerable anomalies and inequalities. conclustons.—to many minds a turnover tax is most attrac- tive. this springs mainly from the universality of the tax and its cumulative nature which permit of a very low rate of tax, combined with a substantial yield. because the rate is small it is always argued that it will not be noticed, but it enters insidi- ously into every phase and item of expenditure and in such a manner as to take no account whatsoever of ability to pay. accordingly, a turnover tax offends against this great modern principle of taxation because the working classes constitute the bulk of every nation, and because their aggregate income (and expenditure), notwithstanding the smallness of the individual income, accounts nearly always for more than half the total of the national income. a turnover tax falls with the greatest weight on persons whose ability to bear it is least. if services are excluded from the scope 856 of the tax this inequality is aggregated inasmuch as a consider- able part of the expenditure of the richer classes consists of expenditure on services. it is notably in this connection that turnover taxes in one form or another have been adopted widely on the continent of europe, where direct taxation according to the principle of ability to pay is least favoured, and that on the contrary they find little or no favour among anglo-saxon com- munities where direct taxation grows more strongly in favour. by its universality a turnover tax tends to enter into the cost of production of all goods and therefore to raise the costs of the marginal producer whose influence on price is almost dominant. for this reason a turnover tax is utterly unsyited to any nation which has a large international trade, or which carries on from centres located within its own boundary large manufacturing, commercial or financial business in other countries. bisltiography.—-a, bernard, taxation of incomes, corporations and inheritances in canada, great britain, france, italy, belgtum and spain, senate document no. 186, 68th congress, 2nd session. (govt. printing oace, washington); sales tax laws of foreign countries (govt. printing o fice, washineton, 1921); czecho-slovtk taxation system, budget and trade, trade information bulletin no. 100 (washington, 1923); r. grabower, die geschichte der umsatesteuer (berlin, 1924); g. strutz, tzandhbuch des retchsteuer- reches (berlin, 1924); l. brancolini, ze zmpboste e tasse raccolte e con- mentate ad uso del contribuente (ofice of ‘ la stampa commerciale,” milan, 1925); h. patzauer, die effentlichen abgaben oesterreichs (vienna, 1925). (w. h.c.) tutankhamun (see 9.84), or, as he was originally called, tutankhaten, must have ascended the egyptian throne shortlv after 1358 b.c. he had married ankhesenpaaten, the third daughter of akhenaten, and thus, on the death of akhenaten’s ephemeral successor, sakere, who had married the second daugh- ter, he became heir to the throne. the highest date as yet known in his reign is the sixth year, and as the body found in his tomb is said to be that of a youth of about 18 he must have been a child at his accession, and a puppet in the hands of older men, chief tutankhamun—tyrol among whom, doubtless, was the priest ay, his eventual succes- sor. presumably he reigned at first in the new city of akhetaten, but his advisers must already have seen that atenism, the cult of the sun’s disk, established by his father-in-law, was doomed, and that a compromise with the powerful priesthood of amun was inevitable, for even at til el-amarnah itself we find grave- stelac bearing the names of amun and other orthodox gods. <ac- cordingly he moved back to ‘thebes, the old capital, with his court, changed his name from utankhaten “ living image of the disk ” to tutankhamun “ living image of amun,” restored the names of the old egyptian gods which akhenaten had chisel- led out on the monuments and made a formal profession of orthodoxy by celebrating the festival of opet, a ceremony con- nected with the worship of amun. apparently, despite the neglect of foreign affairs under ak- henaten, egypt still retained the province of nubia, for a scene in the tomb of one l.uy, viceroy of nubia, shows the king re- ceiving the nubian tribute. another scene shous the reception of the “ tribute of retenu,” i.e., of syria-palestine. unless this scene be a mere pleasant fiction, which is hardly likely, it indi- cates that the allegiance of syria had not been quite so com- pletely lost under akhenaten as has been generally supposed. the king’s tomb in thebes has up to 1926 made no contribution to the history of his reign. see a. h. gardiner and nina de g. davies, the tomb of huy. (the theban tombs series, 4th memoir) 1926. a i oes tylor, sir edward burnett (1832-1917), british an- thropologist (see 27.498), died at wellington, somerset, jan. 2 1917. he was knighted in 1912. typewriter: see office appliances. typhoid fever: see infectious fevers. typhus fever: see infectious fevers. tyres: see tires. tyrol: see tirol. u-boat—ukraine -boat: see submarine campaigns. uganda (see 27.557) has an area of about 110,300sq-m., including 16,169 sq. m. of water, the population in 1925 was estimated at 3,145,000. there were 1,451 europeans and 7,229 asiatics (mainly indians). in 1919 europeans num- bered 847 and asiatics 3,516. since 1920 uganda has become one of the main sources of the supply of cotton in the british empire. frontier questions.—territorial changes made in 1912 gave the western shores of lake albert to the belgian congo, while kizegi, a highland region containing some of the peaks of the mifumbiro volcanoes, was added to uganda (partly by transfer from german east africa). in 1914 the most northern part of the protectorate was placed under the administration of the an- glo-egyptian sudan, whose authority was extended south to nimule, the point where navigation on the nile from khartum ends. in return, the sudan surrendered to uganda some 4,000 sq. m. west of the nile, an area which has been part of the lado enclave (see 16.60). in 1922 the didinga district east of the nile, was taken over by the sudan. the whole frontier region towards abyssinia was in an unsettled condition. here for years abys- sinians, turkana and somalis carried on a gun-running trade and made raids on peaceful tribes. to gain a better control of the people and pending a readjustment of the frontier, the kenya govt. took over from the authorities in uganda the administra- tion of the rudolf province. social conditions.—christianity and western civilisation in- creasingly made their influence manifest, while material pros- perity brought new problems. uganda being, however, a “ black man’s country,” there was no clash between european and afri- can interests. officials and missionaries continued to play a lead- ing part in the evolution of the people, and they were backed up by the native administration, which has a large degree of auton- omy. by 1926 over a third of the natives professed christianity, including the bulk of the buganda, the most important tribe. daudi chwa,the kabaka (king) of buganda, who attained his majority on aug. 8 1914 and was created a k.c.m.g. in 1925, was an enlightened ruler. he and his prime minister, sir apolo kagwa, were foremost in giving aid to the british in the world war. other rulers and tribes were equally willing, and by supply- ing 10,000 soldiers, a native medical corps and over 160,000 carriers uganda helped substantially in the campaign against the germans in east africa. the country suffered from a severe famine in 1919 and from the general trade depression in 1921-2. but it quickly recovered. in cultivating cotton, an industry entirely in their hands, the natives found an easy method of acquiring wealth; a fact not without danger and adversely affecting the labour supply for other work. however, there was steady growth in education and a power of adaptability to new conditions was clearly no- ticeable. a government technical school for natives was opened in 1922. in 1924 its scope was extended to include higher educa- tion. otherwise education was in the hands of the missionary so- cieties. at a critical period of development uganda owed much to the wise guidance of sir r. t. coryndon, governor from feb. 1918 to sept. 1922. during this period a (nominated) legisla- tive council was created. it met first in 1921. cotton and other crops—a beginning in the export of cotton was made in 1904-5 when 300 to 4oo bales were produced. by 1912-3 the output had reached 50,000 bales. the war caused a set-back in production, but by 1922-3 the yield was 93,000 bales and in 1924-5 was over 200,000 bales. some two-thirds of the cotton is grown in the eastern province, between lake keoga and mount elgon. a railway 61 m. long from tinja (by the ripon falls) to namasagala, the first navigable point on the nile, was opened in ror1z2. it is known as the busoga railway. to give the cotton-growing district communication with mom- basa port the building of a railway from the kenya end was be- gun in dec. 1921. branching from the kenya and uganda rail- 857 way at nakuru, it is some 320 m. long, of which 165 m. are in uganda, where a junction is effected with the busoga railway. the uganda section of the line was begun in 1925. by 1926 the area under cotton was over 600,000 ac. while the area suitable for cotton, largely served by the new railway, many times greater. coffee ranks second among the crops of the protectorate and is grown chielly on european plantations. the cultivation of the sugar-cane has been developed. chillies, oil seeds and rubber are other products. cattle are plentiful, and there are valuable timber areas. gold occurs over a long stretch of the kafu river. trade and revenue.—in the process of development imports for many years largely exceeded exports. the figures for rg1o-1 were imports £431,000, exports, £337,000. in 1916-7 imports were £866,000 and exports £702,000. in 1917 the customs were amalgamated with those of british east africa (kenya colony) and since then only net statistics of exports are available. it was soon obvious, however, that exports had become of higher value than imports. in 1918~9 exports were £1,247,000. in 1920, ow- ing mainly to inflated prices they were valued at over £4,250,000; in 1923, with more normal conditions, at £2,393,000. in 1924 ex- ports had reached a value of £3,897,000, while that of imported merchandise was put at £1,975,000. of the 1924 exports cotton accounted for £3,486,000, cotton seed for £106,000 and coffee for £167,000. cotton goods, machinery and vehicles (including mo- tor cars and cycles) are the principal imports. since 1915-6 the protectorate has been financially self-sup- porting. in that year revenue was £287,000 and expenditure £285,000. in 1924 the figures were, revenue £1,239,000; expendi- ture £918,000. the chief sources of revenue are poll taxes (over £400,000 in 1924), customs, a cotton tax, trading licences and land rents. binl1iography.—r. kmunke, quer durch uganda (1913); j. roscoe, the northern bantu (1915); hl. r. wallis, the handbook of uganda (2nd ed. with bibliography 1920); w. a. crabtree, 4 manual of lu-ganda (cambridge, 1921); a. b. lloyd, dayspring in uganda (1921); j. roscoe, the soul of central africa (1922); r. s. troup, report on forestry in uganda (1922); l. j. van den bergh, on the trail of the pigmies (1922); j. roscoe, the bagesu and other tribes (1924); e. j. wayland, geological survey of uganda (entebbe, 1925); report on the fast african commission (cmd. 2387, 1925); east african red book (nairobi, 1925). see also annual report on uganda, issued by the colonial office, london. tee a oy uhde, fritz karl hermann von (1848-1011), german painter (see 27.563), died at munich feb. 25 rorr. ukraine (see 27.564)—the ukrainian socialist soviet republic is a constituent state of the union of socialist soviet republics (see russia). it comprises the southwestern area of what was formerly european russia, less the territories ceded to poland, and bessarabia, the union of which with rumania was finally sanctioned by the allied and associated powers in a treaty signed at paris oct. 28 1920.! area and population the republic covers an area of 446,400 sq. km. (3,176,567 sq. versts), and is divided into nine govern- ments and the moldavian socialist soviet republic. the population (1924) was 27,168,962, of which just over 22,000,000 were engaged in rural occupations. these figures represented 2:1°% of the area of the union and 19-4% of its population (1924). a test census carried out in two governments during 1920 revealed a decrease in the population since 1914 of about 11%. kharkov is the capital (population 311,525) and the other large towns are kiev (435,060) and odessa (316,740). political history—the ukraine formed an integral part of the russian empire until r9r7. when however the provisional govt. was established in petrograd in march 1917, a ukrainian deputation waited on it in the following month to demand autonomy for their country, and on april ro the first ukrainian national congress met at kiev to elect a council of govern- ment (rada). in june this body assumed the control of 1 this treaty was not ratified by italy and japan, 858 ukrainian affairs, and in aug. the provisional govt. of russia recognised the autonomy of the ukraine. contemporaneously with the bolshevik revolution in petrograd the rada _pro- claimed a people’s republic (nov. 20 1917). negotiations be- tween the rada and the russian soviet govt. took place in dec. and the former sent delegates to the peace confcrence at brest- litovsk, who were duly recognised by the central powers. on dec. 26 the first all-ukrainian congress of sovicts met at khar- kov. in jan. 1918 relations between the russian soviet and the rada were broken off, and the latter proclaimed its com- plete independence. bolshevik troops invaded the ukraine and in march the rada appealed to the central powers against the moscow government. meanwhile the ukrainian delegates at brest-litovsk had concluded a peace with the central powers (teb. g and 11 1918) under which, iter alia, the frontiers of the republic were delimitated. by the end of april german and austrian troops had occupied the ukraine and established a military dictatorship under hetman skoropadski, and carly in may an armistice with soviet russia was proclaimed, followed in the same month by definite peace negotiations. soon after the peasants rose against the german administration and at the beginning of june held a peasants’ congress at kicv demanding the re-establishment of the people’s republic, and on july 30 the german governor, von eichorn, was assassinated. in nov., petlura, a member of the former rada, began operations against skoropadski, whom he overthrew in dec., and established a directory composed of himself and vinnichenko, which proclaimed the union of the ukraine with the west ukrainian (east galician) republic. towards the end of the month petlura occupied kiev, but in feb. 1919 a bolshevik rising forced him to retire to east galicia. on march r the second ukrainian congress of sovicts met. in their efforts to support anti-bolshevik operations the french had first bombarded and then occupied odessa in nov. 1918, but early in april bolshevik risings and the advance of the red army forced them to evacuate the, port, and it fell into the hands of the soviet troops. in june ro19g, however, general denikin’s forces captured kharkov, and in aug. overthrew the second ukrainian soviet government. but the sovict forces in the ukraine regained the ascendancy with the capture of kharkov and kiev in dec., and of odessa in feb. 1920, whereupon a (third) ukrainian soviet republic was established. irregular warfare continued for some time and large portions of the ukraine were occupied by petlura’s and the polish troops in may 1920, being again expelled when the russian army took the offensive in july (see russia). by the treaty of riga (oct. 12 1920 and march 18 1921) poland and russia recognised the independence of the ukraine. on dec. 28 1920 a russo- ukrainian treaty was signed defining relations between the two soviet republics. during 1921 the ukrainian socialist soviet republic signed separate treaties with georgia (jan. 31), lithuania (feb. 14), latvia (aug. 3), estonia (nov. 25) and italy (dec. 27); and also, in conjunction with the russian socialist federated soviet republic, with austria (dec. 7). in 1922 a treaty with turkey was signed (jan. 2) and, again in conjunction with the r.s.f.s.r., a trade agreement with czechoslovakia (june 5). on july 6 1923 the constitution of the union of socialist soviet republics was adopted, of which the ukraine became a constituent member. in sept. 1924 the autonomous moldavian socialist soviet re- public was formed as part of the ukraine. natural resources.—the ukraine lies almost entirely in the great steppe belt, and the greater part of the soil is the very fertile black earth. the chief crops are wheat, rye, millet and maize; the area under grain cultivation in 1924 was 20,099,000 desoyatins and the crop 747,000,000 poods. flax and sugar cane are also grown, and fruit trees are abundant. the inhabitants breed the big tcherkess cattle which are used both for plough and in harness. the donets basin, which 1s the most highly developed (though not the largest) coal field in the union, lies within the territory of the ukrainian s.s.r. the district suffered severely during the civil war: the output, which was 1,544,000,000 poods in 1913, fell to 273,000,000 in 1920 and for 1925 was estimated at a little over 600,000,000 poods. before the war 90° of the russian coal output unamuno—underwood came from the donets; in 1924, 78°%. this area also contains the largest anthracite reserves in the world, and deposits of cinnabar from which mercury is obtained. rock salt is mined on the edges of the don ridge. there are large iron deposits at krivoi rog, estimated at 200,000,000 tons of ore with an average yield of 62-67\". of iron, 9% of silica and -03 to -06% of phosphorus. the annual output in 1925 was about 250,000 tons compared with 6,600,000 tons in i913. there are also manganese deposits at ekatcrinoslav. the principal metal industrial centres in the ukraine are at yusovka (in the donets), kharkov, mariupol, ekaterinoslav and nikolaiev. chemical works exist in the donets basin, agricultural machinery and hemp factories at odessa, sugar refineries in the kiev province, while coopering and pottery are well-developed village industrics. contmunications.—there are two main lines from moscow, one through kharkov, running down to sevastopol in the crimea (which does not form part of the ukraine but is an autonomous socialist soviet republic in the r.s.f.s.r.); the other through kiev te odessa. a main transverse line runs through kiev and kharkov to rostov, while branch lines from the odessa line link up kiev with warsaw and lemberg. subsidiary lines link up the more important towns, but though the mileage-area ratio is higher in the ukraine than in the rest of the union, the transport system,unsupported by any adequate roads, and further hampered by shortage of rolling- stock, is quite insufficient to meet the requirement of agriculture and industry. kharkov is connected by regular air services with moscow, kiev and odessa. the principal seaport is odessa, whence compar- atively regular services are maintained with constantinople and with other black sea ports. the smaller ports of nikolaiev, berd- jansk, mariupol and taganrog are principally used for coastal trade. education.—there are numerous schools throughout the whole of the ukraine, and 38 institutions of quasi-university standing, of which nine are at kharkov, nine at kiev and seven at odessa. (sce russia.) unamuno, miguel de (1864- ), spanish scholar and man of letters, was born at bilbao sept. 29 1864, and in 1892 was appointed to the chair of greck language and literature at salamanca university. his mystical philosophy has exercised a great influence on spanish-speaking peoples, and his imaginative work in prose and verse is also highly appraised. towards the end of his academic career he began actively to participate in politics. this brought him into contlict with the military directorate and in 1924 he was exiled to the canary islands. later, he refused to accept the amnesty granted and took up his residence in paris. as a consequence he was dismissed from his professorship. his most characteristic work is fl sentimiento tragico de la vida en los hombres y en los pueblos (1913) trans- lated into english as the tragic sense of life in men and in peoples (1921). . unden, osten (1886- ), swedish politician, became pro- fessor of civil law at the university of uppsala in 1917. unden, who was a social-democrat, became a minister without portfolio in the eden cabinet from 1917 until 1920, and minister of justice in the first branting cabinet in 1920. from 1920 to 1924 he was the expert on international law to the swedish forcign office; and a member of the swedish delegation at the assembly of the league of nations from 1921 and also at the genoa and hague con- ferences, 1922. he became forcign minister in branting’s third ministry in 1924 and after the latter’s death in 1925 unden suc- ceeded him on the council of the league of nations. he was especially prominent at the special session of the assembly held in march 1926, when he opposed the election of any other country than germany to a permanent seat on the council. underwood, oscar wilder (1862- ), american politician, was born at louisville, ky., may 6 1862. he studied at the university of virginia (1881-4), was admitted to the bar in 1884, and practised law thereafter in birmingham, alabama. from 1895 to 1915 he was a member from alabama of the national house of representatives, and during his last two years chairman of the committce on ways and means. after the democrats came into power in 1913 he had a large share in framing the tarifi bill passed the same year. in 1914 he opposed the panama canal tolls repeal bill, but supported the res- olution authorising the president to use armed force in mexico. ile was opposed to the woman suffrage amendment to the federal constitution, holding that the question was a state issue. he also opposed the national prohibition amendment. in 1914 he was elected to the u.s. senate, and in 1920 re-elected. in 1919 he favoured the anti-strike clause of the cummins rail- underwriting—unem ployment way bill. a strong supporter of the peace treaty of versailles, in dec. 1919 he offered a resolution in the senate providing that the president of the senate should appoint a committee of 10 senators to work out some acceptable plan for adopting the peace treaty; but this was blocked by senator lodge. in april 1920 he was chosen democratic leader in the senate. he was a u.s. delegate at the washington conference on the limitation of armaments which assembled in nov. 1021. at the democratic national convention held in new york city, june 1924, senator underwood was an unsuccessful candidate for the presidential nomination. underwriting: sce insurance. undset, sigrid (1882— ), norwegian author, was born at kallundborg, denmark, on may 20 1882. after completing her studies at the christiania mercantile college, mme. undsct entered a city office in 1899 and remained a clerk until t909. she thus gained an intimate acquaintance with the empty and unen- livened existence of the girls with whom she came into contact, and utilised her experience in her first literary works, initiated in 1907 by fru afarta oulie. in to12 she achieved fame by the great christiania novel, jenny (eng. trans. 1920), remarkable for its courageous treatment of the erotic problem. after reveal- ing in one of her minor works (1919) the religious crisis in her mind which in 19253 caused her to join the roman catholic church, mme. undset published kristin lavransdatter (1920-22), a remarkable novel of the r4th century, by which she became known to the english-speaking world. mme. undsct’s work shows psychological depth and an ability to appraise the mind and temper of bygone ages, but these qualities are nowhere enlivened by a sense of humour. her last work, a 13th century novel, olav audunsson, is stamped by the same qualitics. unemployment! (see 27.578).—if every able-bodied man and woman were regarded as an actual or potential worker, the term unemployment would have a larger meaning than is com- monly accorded to it. for it would include the withheld produc- tive time and energy of those who figure in censuses as “ unoccu- pied,” the upper and the lower icisured classes, all who manage to live without doing work. but though such a connotation might be sound and serviceable in a general assessment of national eco- nomic waste, it would carry us too far away from the set of actual problems conventionally and conveniently grouped under the term unemployment. that term covers the idleness of those willing and able to work that is attributable to the condi- tions of the trade or occupation in which they are ordinarily engaged. thus defined, unemployment, however, may not be equiva- lent to waste of productive time on the part of all “‘ unemployed.” for there are occupations that are essentially or “ naturally ” irregular in the volume of work they require. such are those dependent upon climatic conditions, or scasonal requirements related to climate or weather. agriculture, building, fishing, dock labour, are large and important examples. most of this slackness is in winter, though there are trades, mining for in- stance, whcre employment is slacker in summer. such fluctua- tions, as with some other trades, for instance printing and dress- making, where seasonal activities are less directly traceable to climatic causes, run a fairly regular and calculable course. this regularity, indeed, enables a certain amount of inter-trade adjustment to lessen the amount of wasted time. in some coun- tries, as in belgium and russia, where the ties between country and town life are closer than in england, agricultural work sensi- bly relieves the unemployment in town industries. a second trade, chosen as supplementary to the first, strengthens the earn- ing power, and gives the interest of variation to the working life, though in a highly specialised industrial system the possi- bilities of such adjustments are severely limited, and trade union discipline raises obstacles. reasons for unemplovment.—there are two other important sources of unemployment in particular trades that cause trouble 1as the amount of unemployment in the united states was so small during the period 1910-26 this article does not ye in detail with that country. d. e. b.) 559 by their irregularity and incalculability. they are changes of fashion or taste in the consumer, and inventions or new processes on the productive side of industry. the dressmaking and to a less extent the textile trades are peculiarly prone to sudden vio- lent changes of fashion, while in most luxury trades considerable fluctuations of employment occur from the freaks of taste, often stimulated from the selling side. new materials, new combina- tions, shapes and colours rapidly acquire prestige, displacing the old and shifting the currents of employment. the spread of luxury among larger sections of a people and the quicker inter- class imitation give larger significance to this item of unemploy- ment. it may, of course, be urged that no net increase of unem- ployment is thus caused, for the new fashion yields as much employment as the old. but from the social standpoint consid- erable net waste ensues from such violent fluctuations. inventions, involving important changes of technique, espe- cially in labour-saving machinery, are liable to cancel much manual skill and to displace its owners, though they may indirectly enlarge employment by reducing costs and prices, so stimulating demand. an active era of inventions evidently signifies that at any given time many workers are looking out for a new job. if times are good, and industry in general active, they may not remain long unemployed, but in norma! times, still more in depressed, they will encounter much difficulty in fitting themselves into a new post. it is evident that in any changing civilisation, where all these factors of irregularity and uncertainty are operative, some un- employment is inevitable. it is true, as mr. charles booth suc- cinctly stated, that “our modern system of industry will not work without some unemployed margin, some reserve of labour.” but this margin need not be as wide as it is. more mobility of occupation, inter-local and inter-occupational, should be prac- ticable. better information through employment bureaux and trade union organisations can speed up adjustments, and so help to reduce the percentage at any moment unemployed. but the efficacy of such measure depends largely upon those wider conditions of general trade, which are commonly brought to- gether under the term cyclical fluctuations. i. cyclical fluctuations the measure of unemployment—but before entering this largest and most controversial field, it will be convenient to consider briefly how far we are able to measure unemployment. there are two sources of information in britain, the trade union returns of members out of employment (whether in receipt of unemployed benefit or not) and the returns covered by the un- employment insurance acts. up to 1920 the trade union returns were the largest statistical basis. they were, and are, a very incomplete index of the total volume of unemployment. for the trade unionists included in the returns are usually less than half of the trade unionists in the country, and the latter are only from a third toa half of the industrial manual workers. although it is part of the policy of trade unions to secure for their members a preference in emplovment, it is likely that the proportion of unemployed among industrial workers who are non-unionists is rather less than among unionists. for the trade unions are strongly represented in certain trades that are exceedingly liable {o trade fluctuations, such as the building, engineering, metal and ship-building trades. moreover, a trade unionist is far less likely to seek employment in some other trade than his own, or to accept lower wages in his own trade. on the other hand, the great mass of casual labour will bring up the volume of unem- ployment in the low-organised trades. these considerations serve to indicate that the returns mie the unemployment insurance act of rgr1, extended in 1922 to cover some 11,500,000 manual workers, form a better index of the total amount of unemployment. the only large excluded classes are domestic servants, farm labourers and government employees. these classes, however, are so large and, with the exception of sections of farm labourers, so much more regular in their employment, as to cause some exaggeration to appear, if the insurance statistics are taken as a measure of the unem- 860 ployment of the working population in the aggregate. when the official figure for unemployment is 10%, the average unem- ployment for the workers as an aggregate might perhaps be put at 9% or even less. as an offset, however, against such a tendency to overestimate, the habit of resorting to short time to meet trade slackness must be taken into account. in coal-mining and the textile trades, especially cotton, this practice must considerably reduce the amount of reputed unemployment. at the lowest depth of the depression in britain, in june 1921, when 2,171,288 workers were applicants for benefit in respect of total unemployment, 832,340 workers claimed benefit for short time. cyclical unemployment—the minor leakages and fluctua- tions due chicfly to natural causes, or to alterations in methods of work, or of consumption, are so various and so numerous that they may be held to require a certain small percentage of “ wait- ers ’’ as representing the wholesome elasticity of a {ree progres- sive economic system. but can the same be said of the larger periodic movements known as trade depressions, which doom a large percentage of the available productive capital and labour to stand idle for a couple of years or more? are we to regard. 24 %s 22 nw a — — & ad ooo percentage unemploye onf oman a dgd 1914. i9/s unemployment ordinary cycles, it is evident that the war and post war infla- tion, practised in different forms and measures by almost all european govts. and the consequent collapse of exchange and internal monetary values, were disturbing factors of prime importance. while inflation exercised an immediately stimu- lating influence on internal trade by encouraging expenditure, and upon export trade by means of an artificial cheapening of production, the consequent damages to confidence and credit, the ruin of large sections of the middle-classes, the difficulty of the import trade and the scarcity and dearness of working capi- tal, were main contributions to the long depression. closely connected with this financial disease was the sabotage of commercial relations, accompanied by high tariffs and em- bargoes upon the movement of goods and investments, and the breaking up of the economic unity of the austro-hungarian empire. the virtual isolation of russia from free economic intercourse with the outside world brought a serious curtailment of foods and raw materials for other countries, and a correspond- ing reduction of manufacturing exports. new difficulties arose between town and country, due to bad money, creating food shortages, depressed wages and efficiency 196 year fg. 1.—graph showing the percentage of unemployed in great britain and northern iretand, among workpeople insured against unemployment (broken line) and members of certain trade unions (continuous line). (ministry of labour gazette.) these large fluctuations as inevitable, or possibly desirable? first, a word as to the size of these fluctuations. before the war the annual averages of unemployment swung between about 23% and 74%, leaving an implication that our system for its free-working requires an average unemployed margin of some 5%, half of it representing the minor trade changes and leak- ages to which we have referred, half forming a reserve of labour to enable expansion to take place in good times. but war and post-war experience show a far more violent fluctuation. for, whereas the figure for 1918 was 0-8 and for roro 2-4, the depres- ston which set in at the close of 1920 reached by june 1921 the extraordinary figure of 23-1%, and the trade union average for 1921 was 15:3, for 1922, 15-4. two other general tendencies may be noted. the larger inter- course between industrially developed countries since 1875 has made these ebbs and flows of trade more simultaneous. the “boom ” years 1873, 1874, 1900, were common to all industrial nations, so was the collapse of later 1907. the other tendency is the shortening of the cycle. before the seventies of last cen- tury there was something like a 10 years’ rhythm. since then the periods have shortened, the years of maximum trade activity being 1873, 1882, 1890, 1900, 1907 and 1913. the post-war situation caused some disturbance of both these tendencies. *¢ japan began to feel the effect of trade depression in 1919 when trade in great britain was in full swing. in 1921 germany was expanding her industries rapidly, while great britain was in the throes of the depression. again, in 1923 economic conditions in the united states showed a very striking recovery, and indeed she attained in the spring a condition of record trade activity.” (hon. j. j. astor, zs unemployment inevitable?,p. 11). the post-war depression.—rbefore discussing the causes and remedies of normal cyclical unemployment, it will be well to deal briefly with the peculiarities of the post-war depression, which alike in tts causation and its character is abnormal. with- out prejudging the question of the part played by finance in among industrial workers. political disturbances, accompanied by strikes and labour difficulties in most countries, were a factor in low production. more important in britain and other ex-bel- ligerent industrial countries was the collapse of industries over- stimulated for war-production whose excessive plant and jabour could not be adapted readily to useful work in the after-war world. the huge depression in the iron and steel, engineering and ship-building trades, as in the mining, was largely attribut- able to this cause. monetary disturbances, commercial obstacles, industrial dis- location, revolutions and sporadic warfare have thus contributed towards a trade depression unique in its character and distribu- tion as well as unprecedented in its magnitude and duration. these different causes operated at different times and with dif- ferent stresses in the various countries. in every country there was a striking coincidence between the fluctuations of prices and of employment. when prices fell unemployment rose, and vice versa. the countries not directly implicated in the war suffered as violent fluctuations as the ex-belligerent countries. the un- employment figure in each of the scandinavian countries (with the exception of finland) was higher in the later part of rg2r and the opening of 1922 than the british highest figure. switzer- land touched 25% in jan. 1922 and belgium 32-3 % in may 1921. in germany and austria inflation postponed the trouble until monetary reform was carried out; then came reaction and wide- spread unemployment. in general the internal monetary policy played a more determinant part than the restriction of the export trade, re-absorption of the fighting forces, political animosities, tariffs or any of the other disturbing factors of the post-war world. this would seem to apply even to great britain, where certain of the principal export trades have been the heaviest sufferers. for ‘ most of the trades in question are also essentially producers of capital goods which invariably suffer worst during depression, even though they produce for home consumption only, they are also the trades which were over-expanded during unemployment netherlands | aa / per cent m] mm fn eg 1922 m* ; gs ” ian’ pry ee de hae 4 . pa 2 861 il cer dp init a li|i f \\< \\ ‘ x : : | 1925 year fic. 2.—graph showing the trend of unemployment in certain countries. (based on trade union returns.) (ministry of labour gazette. the war and for the production of which there is now neither home nor foreign demand on the same scale as before ” (un- employment, 1920, 1923, p. 113: international labour office). but though fresh light has thus been shed upon some aspects of our more normal economic life, especially upon its financial side, the war-origin of these phenomena disqualifics this depres- sion from figuring as a safe study for those who seek to under- stand the more regular cyclical movements of industry. il. theories of cyclical unemployment the physical theory.—¥yor convenience the explanations of the origin and causation of cyclical unemployment may be placed in five classes, not indeed mutually exclusive but present- ing different aspects and starting points. the first may be termed the physical theory, dealing with the meteorological factor in trade fluctuation, which first came to the attention of economists by the work of prof. w. s. jevons, who claimed to establish a connection of the appearance of sun spots with climatic conditions affecting harvests, and thereby the productivity and purchasing power of the world. though later astronomical records give no support to the sun-spot theory, attempts have been made by mr. h. s. jevons and sir w. h. beveridge to relate climatic variations with food supplies and general trade. but though there is nothing inherently im- probable in such correlations, the case presented in statistics is not convincing, even if allowance is made for what may be called accidental lags. the restricted scale of the crop-records, both as to areas and kinds, the dubious reliability of the earlier records, the combination of various minor and major waves, the over- lapping of supplies from year to year, especially in modern times, the limited effect which such crop variations as are shown could exercise upon the total industrial activity, deprive this class of explanation from any claim to more than a minor specu- lative interest. that variations in harvests, if they are considerable and wide- spread, will exercise some influence upon industrial output, transport and employment, is undeniable. if foodstuffs and raw materials are produced in diminished quantities at higher selling prices, the processes which work them up, carry and distribute them, will be reduced in the employment they afford. not, however, necessarily to an extent corresponding with the crop- shortage. the effect will be greater when trade is very active than when sluggish and over-stocked. the argument, often stressed, that in bad seasons the agricultural classes, having less spending power, will reduce their purchases of other goods and services, and so spread depression, cannot be accepted without qualifications. if it were true, as is sometimes held (e.g., hull, industrial depressions, p. 45, etc.) that small crops often bring in as much money as big crops, the argument would of course collapse. but the varying elasticity of demand for different articles makes it pretty certain that a widespread bad harvest has some effect in reducing the purchasing power of the rural population. moreover, the rise in food-prices will reduce the expenditure of the industrial classes upon other goods, causing a total shrinkage of demand that must affect employment. but having regard to better crop information, quicker and more reliable transport over wide areas, improved finance for stimu- lating, moving and marketing raw products, better instruments for storage and preservation, climatic causes ought to play a constantly diminishing part in cyclical fluctuations. the accidental theory.— under this head may be placed those who, discarding all general views of causation, impute trade depressions to a variety of unconnected occurrences, sometimes political, such as wars and revolutions, or natural, such as droughts or floods, or business, such as the collapse of active railroad enterprise, or financial, such as a banking crisis. local troubles, thus brought about, spread by contagion or infection, until they have depressed the entire industry and commerce of large sections of the world. it is undeniable that one or more of such injurious occurrences, a bad monsoon, a war or revolution, a “ black friday ” or an australian bank collapse, may and does play quite a distinguishable part in precipitating a crisis of trade and ushering in a period of depression. but most of these events belong to human conduct and are due to economic forces wider and longer in their operation than the catastrophic acts which figure as immediate causes of financial or industrial trouble. there is sufficient regularity in these cyclical fluctuations to enable us to dismiss as inadequate the view that regards them as pure accidents. the psychological factor.—business action is so dependent upon beliefs and feelings that some economists use language implying that industrial prosperity and depression are little else than reflections of a rhythmic movement of confidence and de- jection in the minds of men. this psychological rhythm, oper- ating upon industry through credit (the financial index of con- fidence) they regard not merely as an accompaniment and agent, but as the chief efficient cause of industrial fluctuations. start- ing with the assumption that the business mind is by nature prone to these alternating clations and depressions, and that they are quickly and easily communicated by business leaders to the rank and file, the theory of independent psychological causation becomes plausible. in times of rising confidence busi- ness men seek to borrow freely from the banks, and the investing public to extend their profitable business operations. bankers, 862 sharing the confidence of their customers, make large advances upon reasonable terms at such times, and new capital is forth- coming to extend existing businesses and open new ones. this wave of confidence having spent its force in thus stimulating credit and industrial activity, begins to subside, credits are restricted or called in, because of a belief that trade 1s going down, and this belief and restriction are the means of reducing the volume of commerce and contracting business operations. thus a depression is brought about ‘‘ because of their unbelief.” credit fluctuations.—this separate presentation of the psy- chological movement, however, is uncommon. the connection of these fears, hopes and illusions with “ credit ” is so close and obvious that it is here we must seek for the connection between the moral and material aspects of a cyclical fluctuation. if ‘everyone bought with his own money alone, business operations, though more restricted and less productive, would be subject to smaller variations in volume and value. the worth of the credit and investment systems is that they permit the rapid seizure of opportunities for profitable expansion of industrial activity. the concrete productive forces of land, capital and labour are thus handled to greater advantage. courses of the cycle.—how credit actually operates in the cyc- lical movement is best seen by following the general course which such a cycle takes. in tracing this course it is well to begin from the start of a trade revival. when a depression with low pro- duction, low prices, profits and employment, has continued for some time, the excessive stocks which, because they could not get sold fast enough, congested the wholesale markets at the beginning of the depression and brought prices down, show signs of approaching depletion. it becomes evident that the current rate of production will soon be inadequate to meet the effective demand at the present low level of prices, and that, to stimulate production, prices are going to rise. merchants handling whole- sale trade are usually most sensitive to the situation, and are the first to take action. anticipating an early expansion of sales at higher prices, they seek to make contracts with manufacturers and other producers for future delivery of materials and goods upon a larger scale. these producing firms seek to replenish their lowered stocks of raw materials, fuel, etc., to improve and enlarge their plant and to take on more labour. the fundamental and instrumental industries such as mining, iron and steel, engineering and ship- building, where depression and unemployment have been cleep- est, must set to work at once in order to make timely provision for the renewed activity in the later stages of production, mer- chants, manufacturers and makers of instrumental capital must all seek the assistance of banks for the means of making these expansions. since bank customers during a depression find a difficulty in getting safe or lucrative investments for their sav- ings, bank deposits are swollen, and partly from this source, partly from the banks’ own resources, the credit required, both for increased working capital by short loans, and for more perma- nent investment, is obtainable from the banks and the investing public. the limits set upon such expansion are slow to appear. for, in the earlier stages of the process, the well-founded conviction of bankers that there is a genuine revival of trade which permits them with safety and profit to make advances to customers, and the possession of large unused cash reserves, seem to make liberal credits a good banking policy. thus business men are able to go ahead with increased production, absorbing the capital and labour that had lain unemployed, and enlarging the volume of output and sales at prices which yield an increasing margin of profit. but, when the movement has gone a certain way, two things happen. as soon as the productive power of industry, especially in the great machine trades, has been in full play for a little time, merchants begin to realise that they can get quicker deliveries on easier terms than when the revival began, and as prices are still high and profits large, they become speculative holders of large supplies, applying to their banks for credit to assist them in this policy. the confidence which a genuine re- vival has inspired, and the belief that prices will go higher still, unemployment induce the banks to aid and abet what is in reality a speculative boom in which prices for a time may rise higher than the level to which the industrial boom has brought them. it is now gen- erally recognised by financial experts that insufficient knowledge of actual trade conditions is largely responsible for carrying the cyclical wave of prices to an excessive height by this undue use of credit. ifages and prices—the other thing that happens is even more crucial in its consequences. in the revival of trade the rise of wages continually lags behind the rise of prices. this means high profits for traders, and no considerable risk for bankers with their large cash reserves. but when the revival has reached its height and prices remain fairly stable at a high level, wages creep up and the workers demand their share of the prosperity. this brings simultaneously a cut in profits, that in some measure weakens the borrowing power of the business man, and a reduc- tion of the bank reserves of currency to mect the weekly demands of the higher wage-bills. as cash reserves are reduced, the banker takes alarm, and, following his customary policy, raises his rates, restricts further credit and calls in loans. this forces business men to realise on their stocks, prices fall with a rush, orders fall off, production slackens and unemployment sets in. the fall of prices, accompanied by a fall in profits and later on in wages, does not stimulate enough increase of demand to check the process of depression. so the circle comes round. this presentation of the cycle tends to support the view that trade fluctuations are pre-eminently credit cycles, the efficient causation of the movement coming from the money side. there are those who appear to hold that a stronger, clearer-sighted and more disinterested banking policy could stop altogether great trade fluctuations, except so far as they might be due to great natural or political interferences. if bankers, they argue, would rigorously check further emissions of credit to traders when industry had reached its full activity with capital and labour fully employed, the speculative part of the boom with its rocketing of prices would be stopped. or if, again, they were more cautious in restricting credit later on when the tide was beginning to turn, the collapse of prices and restriction of output which ensued might be avoided. a more judicious and public- spirited bank policy might, at any rate, cut off the peak of the trade curve and maintain a large degree of stability of prices and production. the prime cause of unemployment, according to this diagnosis, is the inelasticity of the modern monetary system. the under-consumption theory.—a fourth school of thought fastens upon under-consumption, or failure of consumption, to keep full pace with the swelling current of production, as the main efficient cause of unemployment. their argument runs thus: in any economic society, the current condition of the arts of production and standards of consumption will determine, not only how much productive power of capital and labour can be economically employed in the several processes of industry and commerce required for turning out the different sorts of consumable goods in their due proportions, but also how much of the current increase should be applied to taking out consum- able goods for consumption, and how much to stimulating the increase of productive capital in the various processes of indus- try. il too little is expended in the latter way, z.e., if savings are small, then there will be an insufficient provision for a rising standard of living for a larger population in the future. if too much is ‘ saved ” and too little “‘ spent,” there will come into being a larger amount of productive capital in plant, tools, ma- terials, etc., than is required to turn out the consumable goods that get bought and consumed. though any individual, or group of people, may save as large a proportion of their income as they like without inconveniencing the economic system, economic society as a whole is restricted in the proportion of the general income that can usefully be saved by the condition of the arts of industry. in a primitive society very little industrial capital can be utilised: a modern industrial society affords a great scope for saving and investment. but there is always a limit in the pro- unemployment portion of income that can be economically utilised as new cap- ital. if that limit were passed, too much capital being created for the supply of the quantity of consumables that were pur- chased for consumption, a stoppage of industry would take place, some of the industrial plant standing idle or half-used, with a congestion of unsalable goods accumulated either earlier or later in the processes of production. the actual over-produc- tion of consumables, or even capital goods, need not go far; the real mischief will consist in the slowing down of the entire process of production with a stoppage of the worse-equipped or worse- placed plants. as this productive plant slows down or stops, a corresponding body of unemployment is created. real and money incomes are thus reduced: profits, the main source of industrial savings, shrink, most other business incomes fall, so that the proportion of savings is let down for a time far below the true normal. spending does not fall proportionately, so that gradually the congestion of the economic machine is released, goods being taken out faster than they are being replaced. weaker firms during the depression have gone out of business, and little new plant has been created. when this double process of depleting stocks and letting down plant has gone so far that irreducible consumption is tending to exceed current production so that prices begin to turn up- wards, this indication of an approaching revival of trade stimu- lates merchants and manufacturers to prepare for the revival. that preparation involves primarily a renewed activity in the fundamental and instrumental industries, in order that more manufacturing plant and larger supplies of raw materials may be ready for the expansion in the later processes. the mining, metal, engineering and transport trades, which depression had hit hardest, revive earliest and fastest, for their increased output is a prior condition to full activity in the manufacturing processes. for this process of revival an expansion of bank credit and of currency is a necessary instrument and adjunct, but the efficient causation of the movement does not proceed therefrom. a variant of this under-consumption theory attributes de- pression to an over-investment in the instrumental and con- structional industries, due to an over-estimation of the intensity of future wants which, operating in the immediate interests of the business classes, restricts consumption by putting an excessive proportion of productive power into industries the consumable fruits of which are long delayed and cannot in fact justify the amount of productive energy directed into them. the position is thus stated by mr. denis robertson:— since each new investment, once it is made, will be capable of functioning for a considerable period, the rise in the utility of new constructive goods will often in any case only be temporary; a point will be reached beyond which any further investment would involve a sacrifice of present enjoyment disproportionate to the enjoyment which will be afforded by the new consumable goods which it 1s pro- posed to create. in fact, however, owing to the stress of com- petition, aggravated by the length of time which must elapse before the new instruments projected can be brought into working order, investment is likely to be carried beyond this point. (study of in- dustrial fluctuation, p. 240-1). this view, that an opposition of interests exists between the investing classes on the one hand and the working-class con- sumers on the other, is reinforced by the writings of mr. veblen (see especially the engineers and the price system), who charges the former with practising a sabotage of industry, by chronic restriction of productivity and output in order to make larger profits out of regulated prices. over-population theory.—neo-malthusians often explain un- employment as a necessary implication of the tendency of popu- lation in certain countries, or in the world, to increase faster than the means of subsistence, or the growth of the fund of capital re- quired for their employment under modern industry. from the assumption that a given area can only support a limited popula- tion in employment upon such a standard of living as is required to sustain a family, they argue that in many countries the limit has been passed, and that though there may be other areas capa- ble of bearing larger populations than exist at present, the trans- fer from over-peopled to under-peopled areas is so much impeded 863 as to leave in the former a considerable surplus over the normal economic requirements of the labour market. though for a time in certain favoured lands the pressure of the law of diminishing returns to agriculture may be offset by high productivity of manufacture, the surplus of which may be used to purchase in- creasing supplies of foods and raw materials from newly developed lands, the difficulties of this economy increase as the more fruit- ful of the backward countries advance in population and in the development of their own industries. moreover, the restrictions of tariffs on the one hand, and free migration on the other, make the natural adjustments more difficult. the world war not only stopped the normal emigration by which congested european countries relieved themselves, but stimulated the erection of new barriers, especially by checking the flow of european labour into the united states. on the other hand, the losses of the war and the lower birth-rate and reduced growth of population signify a considerable reduction in the numbers entering the labour-market in these countries, especially later on when the full force of the lower birth-rate is represented in adult numbers. so far as a reduced population carries with ita better distribution of income, through higher wages, it may, in accordance with the under-consumption theory, stimulate a larger volume of demand and more employment. but statistics do not sustain the view that comparatively sparsely peopled countries like the united states, canada and australia, escape periods of unemployment that are as large proportionately as those of thickly peopled europe. while, therefore, the world volume of employment is evidently increased by mobility of labour, as of capital, from one ccuntry to another, retardation of migration cannot be regarded as a major cause of cyclical de- pressions and unemployment. iii. remedial measures commercial organisation.—the remedies for unemployment, of course, vary with the different theories of the causation of the trouble. orthodox economists, attributing it to a combination of unpredictable natural causes and business miscalculations, chiefly rely upon improved organisation of markets, communica- tions and finance, to reduce and alleviate the fluctuations. even the natural causes can be considerably abated by increasing the dispersed sources of supply, and by better crop hygiene. but their main remedies are fuller and more reliable statistics, better busi- ness education, publicity of trade information, sound banking, with its steadying effect upon the minds and methods of business men, and, finally, the more controversial proposition of a willing- ness of organised labour to assist the recovery of trade by accept- ing lower wages when prices and profits have fallen. misapplica- tions of productive power, with their attendant losses and stoppages, could thus be averted. business men, investors and workers would have the fuller confidence and security which better understanding of all factors in the business situation gives. planning would be improved, speculation would be more en- lightened and greater stability of industry, prices and credit would exist. this view is stated in the following terms by sir w. h. beveridge (unemployment, p. 193):— unemployment is a question not of the scale of industry but of its organisation, not of the volume of the demand for labour but of its changes and fluctuations. ‘the changes are of several types; trades decay or are revolutionised by new machines. through these changes particular parts of the labour supply get displaced. unem- ployment arises through their difficulty in getting re-absorbed. the fluctuations, also, are of several types; some co-extensive with the econoniic life of the nation; some peculiar to certain trades; some purely local or individual. to mect these fluctuations—cyclical, seasonal and casual—there are required reserves of labour power. unemployment arises as the idleness of these reserves between the epochs when they are called into action. the solution of the problem of unemployment must consist, therefore, partly in smoothing in- dividual transitions, partly in diminishing the extent of the reserves required for fluctuation or their intervals of idleness, partly, when this plan can go no further, in secing that the men of the reserve are properly maintained both in action and out of it. the problem is essentially one of business organisation, of meeting without dis- tress the charges and fluctuations without which industry is not and probably could not be carried on, it is not a problem of increasing 864 the mere scale of industry. it is not a problem of securing a gencral balance between the growth of the demand for labour and the growth of the supply—for this general balance is already secured by eco- nomic forces—but one of perfecting the adjustment in detail. banking and currency control.—those who hold trade cycles to be pre-eminently credit cycles seek remedies for depressions and unemployment in a more intelligent control of banking and currency. since these fluctuations are brought about by price changes, the aim should be to stabilise prices, or at any rate to keep the fluctuations within narrow limits. if any economic events, affecting the supply of goods, tend to raise or lower prices, the supply of money should be increased or diminished so as to compensate for such disturbance. a depression in which capital and labour lay unemployed because prices were too low to cover costs of production should be met by emissions of credit which by raising prices would stimulate industry. these small doses of inflation would, it is contended, enable industry to ab- sorb the unemployed capital and labour, by raising prices to a level which sufficed to yield reasonable rates of wages and profits. then, when industry was brought into full activity, prices should be stabilised at that level, and a monetary policy devised to keep them stable. some financial purists, objecting to the inflationary method, would wait for general trade causes to produce a revival and would then apply the stabilising policy. there are various methods advocated for stabilisation. some are based on the retention of the gold standird. the volume of currency could be expanded or contracted by increasing or re- ducing the quantity of gold in the unit of account. this is the essence of prof. irving fisher’s proposal of a ‘‘ compensated dollar.” others would follow an elastic policy of expansion or contraction, operated by a central bank in conjunction with the government, whereby alterations in the discount rate should be fortified by a selling or purchase of public securities. others, again, regarding a gold standard as a hampering factor in the situation, would regulate the quantity of credit and currency by exclusive attention to the demands of trade, at any rate for pur- poses of intranational payments, gold being retained exclusively for purposes of international exchange pending the possible future development of a reliable federation of national banks pursuing an agreed international policy for the emission of credit and currency. (see currency.) various critics of established monetary systems in recent years attribute depressions to the failure of the volume of purchasing power to correspond with the actual or potential volume of goods. all that could be produced could not get sold, because of the lack of money in the hands of would-be purchasers. this is sometimes attributed to the credit system, operated by the “money power ”’ which by financing trade raises costs of pro- duction and selling prices to a height greater than the purchasing power distributed among the owners of the factors of production at the various stages. on this view, it is necessary for the state bank, or other money-makers, to provide a supplementary supply of purchasing power in order to furnish adequate markets for all the goods which the economic system could produce. taxation and income—between the financial doctors and the under-consumptionists there is this common ground, that both find that the reason why goods cannot get produced in bad times is that there is an insufficiency of purchasing power in the hands of the consuming public to buy them at a price covering their costs. but most under-consumptionists attribute this insuffi- ciency toa maldistnbution of income. an insufficient proportion of the actual or possible income passes to the classes who would spend most, an excessive proportion to those who would save most. this, as we saw, leads to an attempt to put into concrete shape and activity a larger quantity of capital than can function productively in turning out the volume of consumable goods that can be taken out of the productive system to be consumed. those who accept this diagnosis find the only valid remedy in measures for a better, or more equal, distribution of income. measures of taxation devised so as to take rents, excess profits, windfalls and other elements of income that are “ surplus,” in the sense that they do not evoke productive efforts from the uniemployment recipient, and to apply them economically to sound purposes of current public expenditure, make for this better distribution. so do political or non-political actions that raise the proportion which workers take in wages out of the general income of the country. economists favourable to a socialist or labour policy generally hold that a sound test alike for preventives and remc- dies for unemployment is the absorption of “ surplus ” income in wages or in public revenue. palliative measures —the different views of the origin of un- employment affect the attitude of business men, politicians, workers and economists, towards the measures adopted in various countries for the alleviation of the burdens of actual unemploy- ment upon the working classes and the community. leakage between jobs and other minor wastes may be repaired by employ- ment exchanges where out-of-works may apply for vacant posts. quick, full and reliable information may here greatly help the mobility of labour. trade unions, either working with employ- ment exchanges, or on their own account, make it their business to find vacant jobs for their unemployed members. in great britain there existed at the close of 1924, 382 employment ex- changes, 772 branch employment offices and 324 local employ- ment committees, representing employers, workers and certain other bodies. where trade conditions are largely of local de- termination, it may be possible for displaced workers to find a job in some other town or district, or even in some other country. travelling money is provided by many unions, and in certain continental countries, as in pre-war germany, relief stations are provided in order to enable unemployed workers to move about in search of work. another mode of stopping leakages is a decasualisation policy applied chiefly to certain classes of dock labour, where the in- herent irregularities of the trade are intensified by keeping an excessive reserve instead of tightening up the organisation of the trade. seasonal fluctuations may be similarly remedied by transference from one seasonal trade to another. this 1s prob- ably applicable only to low-skilled work. ‘* building, with all the country occupations—harvesting, fruit picking, hopping—on the one hand and the gas-works, the docks and all the excep- tional christmas demand in the post office, in shops and else- where, offer ample material for a start ” (beveridge, p. 210). schools and juvenile employment exchanges can do much to help a better apportionment of young labour among the occupa- tions. at the end of 1924 there were it britain 140 juvenile advisory committces attached to employment committees and 145 choice-ofemployment committees under local education authorities. continued education for unemployed boys and girls has made some progress since the war in england, and a begin- ning has been made in technical or vocational training as a con- tribution towards improved efficiency of labour and enlarged supply of skilled workers. in germany vocational guidance has taken on great activity, the number of offices in 1924 being 597, of which two-thirds were working with the employment ex- changes. the ministry of labour of great britain co-operates with dominion governments in finding employment overseas for willing emigrants, though the numbers thus placed are small. there are difficulties on both sides, unemploved workers pre- ferring to await the chance of work at home, and the dominions exercising a rigorous choice in the personnel of those they admit. publicly organised relief works are a device for dealing with unemployment widely adopted in britain and other countries. in england the unemployment grants committee was established in dec. 1920, to give financial aid to local authorities in executing “works of public utility designed to secure some measure of relief in districts or in trades suficring from unemployment.”’ the committee operates partly by loans of public money, vary- ing from 50 to 75% of the capital costs of the undertaking; partly by grants amounting to 75°> of the wage-bill for unem- ployed men taken on. most of the works thus encouraged were dock and harbour extensions, gas, water and electric supply, roadmaking, sewerage works, parks and recreation grounds, construction of public ferries. in addition to the employment unionist party—united states directly afforded by these works, an almost equal amount is provided in factories, etc., for the production of the materials required. during the four and a half years working to june 1925 the estimated capital cost of the approved works was £85,123,- 371, and the total grants were £68,434,280. the amount of employment thus provided was estimated at 3,181,270 man- months. this policy has conformed to the recommendations of the minority report of the poor law. commission of r907 in seeking to even out the total volume of employment by allocat- ing public expenditure as far as possible to periods of depression and unemployment. insurance against unemployment.—by far the most effeciive provision for the unemployed is by insurance. this began when certain trade unions in britain and belgium, about the middle of the 19th century, arranged to pay regular allowances to members out of work. this method of provision has grown in various countries, and has been built into the public insurance schemes of more recent times (see insurance, social). there are various outstanding problems in the development of unemployment insurance policy. the widest is concerned with the question whether the basis of insurance should be general! or industrial. the latter view is supported on the grounds that each industry is best qualified to deal with its own risks, which, alike in size and origin, differ from those of other industries. the former view stresses the common needs of the unemployed, the difficulty the more fluctuating trades would find in making ade- quate provision, and the advantages of one instead of many administrative bodies. so far, in countries where compulsory insurance prevails, the general tendency has been towards a single uniform administration, though in the british case certain ex- ceptions are admitted in the 1920 act. other difficulties arise as to the interpretation of the “suitable employment ” which an unemployed person may not refuse, and of the term “ involun- tary unemployment” when a strike or lock-out throws out of work members of other trades than that directly affected. how far should insurance cover seasonal and short-time unemploy- ment? a large issue remains, that of the linking up or unification of unemployment with other working class risks in a joint in- surance policy. (see trade cyctr.) bibliograpity.—sir w. h. beveridge, unemployment; a problem of industry (1909); w. c. mitchell, business cycles (1913); d. h. robertson, a study of industrial fluctuation (1915); j. l. cohen, tusurance against unemployment (1921); j. a. hobson, the econom- ics of unemployment (1922); f. lavington, the trade cycle (1922); the third winter of unemployment, ed. by w. t. layton (1923); h. abbati, the unclaimed wealth (1924); hon. j. j. astor, zs un- employment inevitable? (1924); see also—ministry of labour: report on national unemployment insurance (1923); international labour office: unemployment in ats natronal and international aspects (1924); and general problems of social insurance (1925); unembloyment insurance in great britain; a critical examination (1925); w. t. foster and w. catchings, profits (1925). (j. a. h.) unionist party: sce conservative party. united kingdom of great britain and ireland (see 27.598).—under the irish peace agreement of 1921, southern ireland was made a dominion of the british common- wealth. the official name of the rest of the british isles remained the united kingdom of great britain and ireland, no provision being made by the british parliament fora change of title, but from 1922 onwards the name of great britain and northern ireland was much used in official documents. (see great britain; ireland, northern; irisit free state, etc.) united states, the (see 27.612), a federal republic with an area of 3,026,789 sq. m.; and a population 105,710,620 (1920). the estimated population in 1925 was 113,493,720 (u.s. bureau). the following article opens with a survey of the political 1tf itis held that the main object of insurance is merely to alleviate the effects of social risks by compensating the sufferers, this would lead to the preference of a general system of insurance against all risks, since they all equally involve the loss of wages or earnings. if it is considered, on the contrary, that insurance should aim essen- tially at preventing or minimising risks, and compensating the sufferers only when such prevention fails, differentiation according to risk naturally seems preferable (employment insurance, p. 134, geneva, 1925). | 865 history of the united states, this being divided into three parts, dealing respectively with the pre-war, the war and the post- war periods. the second section deals with finance and wealth; this is divided into two portions, one discussing the national finances and the other the amount and distribution of the country’s wealth and income. the third section is on production, industry and trade, including agriculture, and the fourth is on population. the fifth and concluding section deals with communications. cther subjects affecting the united states are discussed in a number of articles, for instance, those on the various states of the union, on its large cities and on its universities. the bank- ing system of the u.s. is described under the heading banking, and the question of defence is discussed in the articles aik forces; army; navy; pacific; etc. otherarticles to which reference may be made include epucation; foop suprly; income tax; in- surance; marketing; promibition,; trade unions; wages. i. political history the american nation—the people of the united states were much more conscious of themselves in 1908 than in previous periods, because they had come to recognise the variety of their make-up. in 1910 the total population of the continental united states was 92,000,000. of these, only 50,000,000 were native whites of native parentage; 13,000,000 were foreign-born, and 19,000,000 others were of foreign-born or mixed parentage. the negroes and indians together numbered about 10,000,000. everybody in the united states except the american indian is an immigrant from some other country or a descendant of an immigrant. the main race groups are: (1) the descendants of the colonists, who were mainly anglo-saxons, with some ger- mans and scotch-irish and small elements of other races; (2), descendants of the europeans who came over in great numbers from 1820 to 1870; (3), the large number of recent immigrants and their children. in the opening years of the present century the country was not yet aroused to the dangers arising from this mixture of un- assimilated races. few voices were raised against admitting not only western europeans, whose languages and customs were much like those of the united states, but men and women from east and southeast europe and from western asia. the only bar to immigration based on race was the prohibition, since 1888, of chinese immigration and the practical exclusion of japanese labourers by a “ gentlemen’s agreement ”’ with the japanese govt. (1907). there was no intelligence qualification, and little effective exclusion of any kind. the undigested load was becoming hcavy. the immigrants were not the only burden on the state. mil- lions of american-born, many of them descended from the old colonial stock, were poor or ignorant or criminal. the situation was saved by gencral prosperity, and by the american spirit of cheerfulness and confident waiting for things to come right. furthermore, out of unpromising conditions had arisen such strong figures as abraham lincoln and william mckinley. the american indians were a small separate race, of only about 250,000. the negroes, about 10,000,000 in number, were un- organised as a race, and were scattered over a large area, mostly in the south. legally equals of the whites, they were subject to humiliating discriminations, and in north and south alike were held in an inferior social position from which there was no escape. defects in government.—the units of american society were held together by a strong, if complicated, democratic govern- ment, well fitted to rule a diverse population. the political forms were familiar to every school-boy: (a) a group (in rgro) of 46 states, each with its own government rigidly confined by the traditional principle of ‘‘ checks and balances ” into three departments, legislative, executive, judicial; (0) a widely dis- tributed franchise almost equivalent to universal suffrage for adult males; (¢) a belief that the courts were the highest author- ity, not only as to questions of personal rights and duties, but as to the validity of the laws and acts of the other two depart- ments: (d) local government of city and town, township and county. this combination of governments was expensive; it 866 was not highly skilled; but it was supported by the conviction of a large part of the population that it was the “‘ best govern- ment on earth.” the boast of the united states was its equal opportunity the pride of the united states was its popular government, in which the will of the people was considered to be the only ulti- mate force. as a nation, americans believed that they had, more than any other country in the world, the blessings of per- sonal liberty, of free public education, of sharing in their govern- ment, of impartial judges. everybody was supposed to have a fair chance in life. in the organisation and conditions of business there could be traced some startling contradictions between the word liberty and the fact. nominally all kinds of business not prohibited by law were open to all comers in free and honourable competition. in reality, by 1908, a considerable number of both employers and employees were engaged in a combat outside the laws, con- stant and conscienceless. it was hard for individuals and firms to compete with corporations, and hard for small corporations to compete with large ones. the railways were among the most conspicuous of the large corporations, and they, too, tended to combine into larger and more powerful units. the states could not deal adequately with these powerful bodies because most of the railways and many of the other corporations operated from state to state, and could not be controlled at either end by any- thing short of federal power. political organisations were on nearly the same basis as busi- ness companies: they also grew bigger and more powerful and gathered into fewer groups. nominally, parties are simply associations of voters for common ends. actually, they are armies acting under commanding leaders who in many cases hold no offices. the evils of this “ invisible government,” as elihu root called it, were apparent. the political philosophy of americans was based on the belief that mankind was steadily growing better. hence a tendency to rely upon laws and political devices for correcting the ills of popular government. there was a glacier-like force of public opinion that could break down all opposition. what was most needed was the leadership of bold and far-seeing men. political and social problems before 1917 finances and the tariff (19g08-13).—every growing unit in the country was harassed by questions of taxation and expenditure. the u.s. govt. also was searching for new resources, and found them in the income-tax. this was made possible july 13 1909, by the submission of the 16th amendment to the constitution, which came into effect feb. 25 1913. another new resource of the federal govt. was a tax upon corporations levied on net income (auz. 5 1909). the important question of reorganising the national banking system, so as to furnish a strong national institution, was debated from 1908 to 1912, and was the sub- ject of an elaborate report by a national monetary commission; but no action was taken at that time. the net federal debt was $1,000,000,000, or only about $11 per head of the population. a financial resource over which congress had sole authority was the tariff. under strong pressure from members of the party to carry out the promises of the republican convention of 1908, president taft, a few days after his inauguration, sum- moned congress to meet in special session, for a “ revision ”’ of the tariff. as usual there was a long controversy, which resulted (aug. 5 1909) in the payne-aldrich tarilf. the act created a permanent court of customs appeals, with power to determine finally all questions as to the value of imports, together with a tariff board, expected to make investigations and recommend specific measures which congress might adopt. as to rates, the act was not very different from its predecessor, except for a decided increase of duties on cotton and silk manufactures. there was a loud outcry that the “ revision ’’ intended by the party platform was plainly a revision downward and not upward. nevertheless president taft signed the bill, and in a speech at winona, sept. 17 1909, surprised the country by declaring that it was the “ best tariff bill that the republican party has ever united states passed.” in the campaign of ror2 the tariff played very little part. it was recognised that a considerable revenue must be raised by import duties; and the large import trade showed that the existing tariff was not prohibitive. political reform r1go08—13.—when roosevelt left the presi- dency in 1909 the position of president was at the highest point of authority that it had ever known. most presidents have found their principal legislative influence in the veto; roosevelt had followed the mckinley method of emphasising his wishes in personal discussion with members of congress. he did more: he revived the jacksonian method of announcing a legislative plan, and if congressmen hung back, of appealing over their heads to the country at large. a similar policy was adopted by president taft, who had many of the qualities of leadership. he was large, happy, genial, fond of his many friends; a cheerful, balanced man. he had served as first civil governor of the philippines and as secretary of war in the cabinet of roosevelt, who practically designated him as his successor. nevertheless, as an avowed inheritor of roosevelt’s policies, he drew upon himself the opposition of roosevelt’s enemies while it soon became apparent that he was not relying upon roosevelt’s friends. at this time “ the primary ” method of selecting candidates was spreading rapidly through the union. candidates for each party were selected by the ballots of the people, thus under- mining the convention system. from nominations for local officers the new method had spread, by 1911, to state officers in numerous states; and after 1910 it began to be applied to the choice of delegates to the national party conventions. an un- foreseen effect was that the official ballots were made upon the basis of party nominations, with an opportunity for independent voting. the primary thus became a part of the system of public elections, and therefore the party system was engrafted on public law, as a part of the government. the distrust of conventions and controlled elections extended to the numerous and powerful bosses in city and state legisla- tures. three new devices were set at work to curb them and to interest the electors in public measures. the first of these, the ‘referendum ” (q.v.), was by 1909 spreading rapidly through the western states, as a means of checking legislative action contrary to public sentiment. the system, both in local and state government, can be traced from colonial times: most 1oth-century state constitutions were submitted to a popular vote, and also many statutes if the legislatures so directed. the referendum system furnished a mechanism, usually imbedded in state constitutions, by which on the demand of a sufficient number of voters, a statute could be held back from effect until submitted to a vote of the electors. what was to be done if the legislature refused to enact a statute demanded by the people? the “ initiative ” was invoked, by which a designated number of voters could unite on a measure, which must then be sub- mitted to the electors for their suffrages. objection was made to all these methods as unconstitutional because they substituted direct action for representation. ‘the referendum had been so long and widely used that it was hard to make out a case against it. the initiative was based on the general principle that the ultimate source of authority is not the legislature or any public officer, but the people at large. in a test case (feb. 1912) the federal supreme court declined to rule that the initiative and referendum were contrary to a “‘ republican form of government.” a third branch of this system of appeal to the people was the “ recall” (g.v.), under which a public officer chosen by popular vote (and in a few cases those who were appointed in some other way) could be subjected to an election; and, should the majority decide against him, be thereby removed from office. in 1911-2 the question came up in connection with the proposed constitution of the new state of arizona, which included a pro- vision for the recall of judges. because of this provision prest- dent taft vetoed the act of admission. the state withdrew the clause, was duly admitted in 1912, and thereupon proceeded to reinsert the recall. in practice, recalls proved to be few, and recalls of judges very few. <a still wider application of the ? united statis principle of the responsibility of functionaries to the voters was the “recall of judicial decisions,” which was advocated by roosevelt in 1912, but proved to be more than the country desired. united states senators, till then chosen by state legislatures, were next made subject to popular choice. urged by public sentiment congress submitted (june 12 1912) the 17th amend- ment, which was duly ratified and added to the constitution (may 31 1913). under this, all elections to the senate were to be made by direct popular vote. another evidence of a rising feeling of responsibility in congress was a statute (aug. 7 1911) requiring candidates for the house and senate to submit state- ments of the money raised and expended in their behalf and limiting the amount which they themselves might spend. one purpose of both these measures was to make it difficult for men to purchase their way into the senate. on july 13 1912 sena- tor lorimer of illinois was practically expelled from the u.s. senate for buying votes in the legislature. another slow reform was in the ballot system. most cities, towns and states were loaded down with long lists of the officers to be chosen. the result was an agitation for the reform com- monly known as the “ short ballot,’”’ by reducing the number of elective officers and increasing the officers to be appointed by the few elective officials. working difficulties were found in many of these reforms. it was hard to keep the public keyed up to the necessary pitch of thought and attention at every elec- tion; but it was evident that the american people intended to free themselves from the shackles of “ invisible government.” soctal questions, 1908-12.—the spirit of discontent extended to many questions outside of politics. throughout the taft administration there was an increasing pressure for “ equal suffrage ’—that is, woman suffrage—which, introduced in the territory of wyoming in 1869, had gradually spread among the far-western states, and then begun working its way eastward. again, both state and national governments were compelled to deal with the question of alcoholic beverages. from the earliest times there had been restriction on liquor selling and liquor sellers as well as punishment for the undue use of intoxicants. by 1909 in almost all states there was some form of general legal restriction—prohibition, local option, high licence or a state dispensary system. the question became national, because the liquor trade transported its wares from one state to another; and that brought it within the interstate commerce clause of the constitution and the interstate commerce act. eventually by the original package act of 1890, congress adopted the policy of prohibiting shipments of liquor into prohibition states. pure food laws in force before 1909 were supplemented by the drug label act (aug. 23 1912), which greatly aided in pre- venting the adulteration of drugs. many questions arose out of immigration. the laws in 1909 forbade the entry of labourers under a contract to work in the united states, of convicts, diseased persons and the insane; but the execution of the laws was slack. the first statute look- ing toward decided control of immigration was that of feb. 1907, which increased the grounds of exclusion, and at the same time provided a plan to help the immigrants in finding work. it also created an immigration commission, which in 1910 made a report in 41 volumes, strongly recommending the sifting of immigrants by testing their ability to read and write some language. meanwhile, in the decade 1901-10 the number of immigrants rose to an average of a million a year. since, how- ever, the record showed that from 300,000 to 500,000 annually returned to their old homes, the actual rate of increase of popula- tion by immigration was no more than about 4% annually. labour ouestions.—beginning with the common law principle that a combination of labourers to raise their wages was un- lawful, the legislatures and courts gradually changed their position and for many years acted on the counter principle that strikes were lawful. no legal obstacle was put in the way of the right to organise, first, by local trade unions, then by nation-wide unions for single trades, and finally by national unions com- bining many trades. to this was slowly added by the unions 867 the principle of the,‘‘ right to labour,” which means both that it is the duty of the community to see that the worker has a job, and also that at least the skilled workers have a kind of title in their employment, so that it is contrary to good morals for a “scab ” to take the place of a striker. the legal position of labour unions in these controversies was brought out by suits of national importance against unions. in the test case of gompers v. buck’s stove and range co., the charge was that the federation, by posting the company in its publications as “unfair to labour,” was boycotting, and thus infringing legal rights. gompers, president of the american federation of labour, was convicted for contempt of court on the ground that he had refused to obey a court order to abandon the boycott. in 1908 a suit was decided against a union of the hatters of danbury (conn.), who had attempted to boycott the products of a local hat manufacturer. the jury found a verdict of $74,000 damages. in the midst of these labour controversies there sprang up a new organisation, the industrial workers of the world (i.w.w.) which was an attempt on a large scale to organise the unskilled labourers, and to reach the goal of “ one big union” for all trades. ‘the movement was unwelcome to the unions of skilled jabour. strikes were frequent and often accompanied by acts of violence. another phase of the labour situation was the spread of employers’ liability laws through various states, and the passing of an act of congress (april 22 1908) for the protection of the employees of interstate railways. in june 1912 congress added to its previous enactment of an cight-hour maximum regular day for public employees, by providing that all contract work for the federal govt. must also be on the eight-hour basis. as most labourers were voters they brought powerful influences to bear on state legislatures and on congress in favour of labour. on the other hand, the courts, particularly those of the states, were slow to recognise the changes in industrial conditions. in addition, the courts began to use a system of labour in- junctions: workman, labour unions and their members were ordered to abstain from committing acts which if committed would presumably violate a law and would therefore lead to a prosecution, in which the question of guilt or innocence could be settled by a jury. instead, the courts by injunction would decide on the responsibility and affix a penalty not specifically laid down in any statute. for years there was a labour or socialist labour national party, which regularly nominated a candidate for the presi- dency and cast a small popular vote. it could not make progress because it was undercut by a standing socialist party which cast from half a million to a million votes. hence, in all the shifts of politics very few avowed labour candidates were elected to state legislatures or congress. furthermore, the members of the labour unions, about 5,000,000 all told, were not more than one-eighth of the men and women in the united states who worked with their hands. trusts and transportation 1887—1912.—during the 20 years ending with 1910 it became clear that the most difficult question before the u.s. govt. was the regulation of the vast aggregates of capital, commonly called trusts (q¢.v.), which, combined into corporations, aimed at the control of particular lines of business, and also of the railways. the efforts of congress to adjust the question were registered in two lines of restrictive statutes, headed by the interstate commerce act of 1887 and the sherman anti-trust act of 1890. upon these was built a structure of decisions by the u.s. supreme court. to carry out and partly to avoid these decisions, the mann-elkins act of june 18 1910 widely extended the interstate commerce acts by including telephones, telegraphs, express and sleeping-car companics, and setting up a commerce court which was to render decisions on transportation questions. federal control of railways on the whole worked well. the commission was a striking example of disregard of the principle of separation of powers, inasmuch as it was a rule-making body, an executive body, and a court which interpreted its own rules, subject as to some questions of appeal to the federal courts. 868 the great problem of the trusts was mach farther from a solution than that of the railways, because the large corporations were linked together through the holding and manipulation of stocks by capitalists and banks, and through the so-called “interlocking of interests.’”? the only effective way of dealing with large corporations whose activities extended from state to state was to bring suit against them for monopolising or con- spiring to monopolise in their lines of trade. it was considered a triumph when (may 9 1911) the u.s. supreme court rendered decisions against two of the most powerful trusts—the standard oil company and the american tobacco company. the court held that the anti-trust icgislation must be interpreted by the “standard of reason ”’—namely, that a combination was not unlawful or against the public interest unless it actually caused i restraint of trade and commerce among the federal states or with foreign nations. having thus set up a ‘rule of reason ” which congress had refused to enact, and having created an example of judicial legislation, the court proceeded in both the pending cases to hold that the companies were guilty of attempts to monopolise their lines of trade. as to penalties, the court contented itself with ordering the offenders to disintegrate. thenceforth the “ rule of reason ”’ required that positive proof must be adduced that a great combination was doing harm before it could be touched. the general danger of vast aggre- gations of capital was left out of account. foreign a ffuirs—the fields of the diplomacy of the united states for the last hundred years have been american, pacific, and in a much smaller degree european. in the second hague conference of 1907 the u.s. delegates urged international arbitration; and in accordance with the general principles put forth at that conference, elihu root as secretary of state secured 25 arbitration treaties with as many countries (1908). the united states and great britain arranged (jan. 27 1909) to refer to the hague tribunal their long-standing dispute on the newfoundland fisheries. the result was a decision acceptable to both sides (sept. 7 1910). president taft, through secretary knox, secured in rgo1r arbitration treaties with great britain and france; but the senate insisted on inserting in these docu- ments a reservation of all questions involving the “ vital interest, the independence or honour of the nation,” and in ror2 it refused to approve them. a long-standing difficulty with russia, caused by the refusal of the russian govt. to recognise passports issued to jews and some other people, was suddenly accentuated when (dec. 18 1911) the commercial treaty of 1832 with russia was abrogated. in ro1r the republican majority under president tafi’s leadership initiated a policy of commercial reciprocity with canada. an agreement was made with the canadian govt. by which each side should by legislation reduce or abolish duties on certain raw products and manufactures. with great difficulty the necessary bill was pushed through congress (july 1911); but two months later the canadian electors refused to support the reciprocity agreement, and the plan broke down. latin america.—notwithstanding the position of the united states as the responsible holder of the philippine is., and hence an asiatic power, the tradition of isolation continued to be a strong force in the public mind. nevertheless no formidable public protest was made to a policy of special american inter- vention in mexico, the caribbean and the isthmus region. the arrangements of rg902 made cuba practically a dependency, subject in the last resort to decisions from the white house. president taft continued the occupation of the dominican republic; consent of the senate under a treaty to that effect having been obtained by roosevelt in 1907. in ror1 mr. taft secured a convention by which nicaragua gave exclusive canal privileges to the united states. the panama canal was now approaching completion and the little republic of panama, which it bisected, though rominally an independent state, was in fact under american control. an act of congress was passed (aug. 24 1912) for laying tolls on shipping, from which american ships engaged in coastwise trade were to be relieved. the british govt. lodged a protest on united states the ground that by its treaty with the united states the canal was lo be opened on equal terms to the ships of “ all nations ”’; president ‘taft, however, stood by the act, and the question was passed on to the next administration (see panama canal). still more serious were the relations with mexico, where, in 1910, a revolution headed by madero, assailed the long estab- lished government of porfirio diaz and drove him after a few months out of the country. mexico was thrown into confusion, and president taft found it necessary te place troeps on the border. in 1912 he proclaimed an embargo on the export of arms or military supplics to mexico. meanwhile the concessions and property of americans in mexico were threatened or destroyed. ‘the americans who had interests in mexico began a steady pressure for intervention by the united states. pacific rel:tions, tg08-12.— across the pacific, clouds rose on the diplomatic horizon. the commercial treaties with japan allowed a reciprocal freedom of residence and trade to the nationals of the two countries. the immigration of japanese was very distasteful to the people of california, who undertook to restrict japanese children to separate schools. behind this difficulty was the rising power of the japanese and thcir national spirit, greatly enhanced by their victory over the russians in 1905. in 1908 roosevelt sent round the world a powerful naval fleet, which visited japan and was received with elaborate cour- tesy by a welcoming japanese squadron exactly equal in num- ber, ship for ship. in the root-takahira reciprocal note of dec. 1 1908 (which was never submitted to the senate), the united states practically admitted japan’s special interest in asiatic affairs. the question of japanese immigration was settled for the time being by a renewal of the commercial treaty (july 24 1911). it continued the previous ‘‘ gentlemen’s agree- ment,” according to which, though claiming a right of immigra- tion into the united states, the japanese govt. pledged itself not to issue passports to labourers. politics roog-12.—in the action of congress on many of the important issues above discussed no party lines were drawn, though such measures as the tariff and new taxes were distinctly republican. on the tariff, some members from middle western states, particularly minnesota, voted against the payne-aldrich measure of 1909. another disturbance was due to resentment against the speaker of the house, joseph cannon of illinois, who exercised an authority that had been accumulating in the hands of speakers for a hundred years. through the union of various powers the speaker virtually had a veto on any measure or pro- ceeding which he did not like. cannon kept too tight a hand; hence (march 19 1910) a group of republican “ insurgents ” joined hands with the democrats to reduce his prerogatives till the speaker of the house became simply a partisan moderator. a new issue upon which both parties were divided was covered by the general term ‘‘ conservation.”” although most of the arable land had passed out of its possession, the federal govt. was still the possessor of great tracts of forest, of mineral lands and of water power. congress in 1902 provided for a system of irrigation, the cost to be advanced by the govt. and repaid in instalments by the users of the water. president roosevelt became interested in stopping the waste of timber and minerals, in preserving part of the gifts of nature for future generations, and in retaining public ownership of the utilities of the country, particularly the forests and streams. in 1910 new statutes pro- vided for a fresh classification of land and for the reservation of coal by the government. roosevelt and wilson—by toto it became clear that the republican party was weakening, and that president taft’s popularity and influence were lessening. the state and con- gressional elections of rg10 were unfavourable to the republi- cans. the insurgents, who soon came to be called progressives, gained most of the republican districts in the west, and the democrats gained about 50 seats in congress. this result transferred to the democrats the control of the house, while in the senate they secured 41 of the 92 members. a group of dissatisfied republicans gathered about senator la follette of wisconsin as a leader and presumptive candidate united states for president. meanwhile state legislatures were passing primary laws which included the election of delegates to national nominating conventions. this made it easier to break through the old line organisations, as la follette had done in his own state. taft’s friends and supporters naturally expected that the president would be renominated. all these calculations were disturbed by the greatest per- sonality in the country, theodore roosevelt. a few weeks after leaving the white house (109000) he started on an expedition to central africa, and was thereafter received in europe as the ex-president of the most important of republics and as a command- ing personage. he returned to the united states (june 18 1910) to find political conditions little to his liking. most of his friends had disappeared from the administration; his policies seemed to him to have been slighted. taft did not satisfy the ex-president, and the two drifted apart. on aug. 31 1910, at osawatomie, kan., roosevelt set forth a programme which he called “‘ the new nationalism,” favouring publicity of the accounts and proceedings of trusts, a tariff commission, a gradu- ated income-tax, an adequate army and navy, conservation, pro- tection of labour, and the direct primary with the recall of elec- tive officers. for the time being roosevelt made no direct movement toward standing for the presidency. meanwhile several of the western states, particularly california under the guidance of governor hiram johnson, accepted a radical pro- gramme of political and social reform. a formal breach with taft and the open candidature of roosevelt seemed inevitable. the crisis came when (feb. 12 1912) president taft in a speech alluded to the progressives (evidently having roosevelt in mind) as ‘‘ extremists—not progressives; they are political emotionaries, or neurotics.” this was taken as a challenge, and a few days later roosevelt openly declared himself a candidate, adding, “ my hat is in the ring.” in a large group of states delegates favouring roosevelt were elected. the election of t912.—as the convention held in chicago approached, the lines of battle were developed. behind taft were barnes of new york, penrose of pennsylvania, crane of massachusetts, and other “ stand-pat ” jeaders. among those in favour of roosevelt were james garfield of ohio, pinchot of pennsylvania and a strong body of republican governors. roosevelt himself went to chicago, established headquarters, and threw his immense energy and enthusiasm into the cam- paign. the convention was a scene of unusual excitement. out of the 1,076 delegates nearly 400 were pledged to support theodore roosevelt. the critical decision was madein the preliminary meetings of the national committee, which was strongly “ stand-pat ”; for that committee had to decide upon the right of claimants to be in- scribed in the preliminary roll of delegates. in the end, every contest except one was settled in favour of the taft claimants. the shifting of 30 delegates from one side to the other would have brought about a “ stampede ”’ to roosevelt, but they were not to be had. roosevelt advised his delegates to take no further part in the proceedings. at the final roll-call, june 22, there were 561 votes for taft, 58 scattering and 107 for roosevelt, besides 344 roosevelt men not voting. in the last issue, there- fore, taft had a majority of 50 votes out of 1,070. in the mins of the conservative republicans roosevelt was extinct. in the minds of roosevelt and most of his followers the nomination was a violation of the principles of popular government. roose- velt openly advised a bolt. this was duly accomplished by a formal progressive convention. it met in chicago in aug. and nominated roosevelt for president and hiram johnson for vice- president. meanwhile the democratic convention at baltimore met under the guidance of william j. bryan, who was in a position to dictate the choice. the apparently sure candidate was champ clark of missouri, speaker of the house of representatives. but under the rules of the democratic convention requiring a two-thirds majority, he was finally defeated by woodrow wilson, governor of new jersey. the platforms of the two old parties were of the usual type. the republicans declared for protective 869 duties. the democrats stood by their platform of a tariff for revenue only, additional regulation of the railways and presi- dential preference primaries. the progressive platform was a general programme of political reform and “ an enlarged meas- ure of social and industrial justice.” woodrow wilson’s victery—not platforms, however, but men, appealed to the voters. all three candidates took the field. from the first it was clear that the real fight was between roosevelt and wilson. the progressives were well organised, and their convention and campaign included many women. the final question was whether roosevelt could draw to him- self a sufficient number of democrats to reduce the democratic vote below the winning point. the result in nov. showed that the democrats in the main stood by their regular party candi- dates. the total popular democratic vote, 6,286,214, was only about 120,000 less than in 1908. the total taft and roosevelt vote combined was almost exactly the same as that of the republicans in tg0o. roosevelt polled 4,126,020 popular votes to 3,483,922 for taft; but he carried only six states, with 88 electoral votes, against 2 states with 8 votes for taft, and 40 states with 435 votes for wilson. the centre and soul of the progressive movement was theodore roosevelt. he had an ardent habit of mind; he felt intensely; he spoke with tremendous encrgy and conviction; he was accused by his critics of “ in- venting the ten commandments.” he was not only the head of a party, he was the head of a political cult (see roosevelt, theodore). woodrow wilson.—in that respect he was closely paralleled by woodrow wilson, who, on march 4 1913, was inaugurated as president. born in staunton, va., in 1856, of scotch presby- tcrian ancestry, he graduated from princeton in 1879, cssayed the practice of law, then was a professor in several colleges. from rgo2 to 1910, he was president of princeton university. he was an easy and attractive speaker, and had a remarkable literary style. (sce wilson, wooprow.) as governor of new jersey during 1911 and 1912 gov. wilson had opportunity to show his skill as a party leader and his interest in reform. in 1912 woodrow wilson was taken up by bryan, who saw in him an exponent of the political principles for which bryan had stood and a president who could meet the progressives on their own ground. on the eve of his inauguration the new freedom was published, a book based on salient passages from his cam- paign speeches. it was in effect a confession of political faith, a forecast of what the president intended. he protests against political conditions and methods, and points out the baleful influence of corporations and trusts. in making up his cabinet it was only reasonable that bryan should enter it. he was made secretary of state, an office for which he had little adaptation. to a new cabinet oflice recently created by congress, the secretaryship of the department of labor, wilson appointed w. b. wilson, a strict labour organisa- tion man. lindley m. garrison, secretary of war, and franklin k. lane, secretary of the interior, were strong men. albert s. burleson, postmaster-general, and josephus daniels, secretary of the navy, had insufficient training for their duties. david f. houston, of missouri, was made secretary of agriculture, william g. mcadoo, secretary of the treasury, and james c. mcreynolds, attorney-general. most of the members of the cabinet were men who could be trusted to follow the president’s lead. one remarkable statesman not included in this list was col. e. m. house of texas, who for six years was the president’s most trusted counsellor and political friend without holding any political office. in the minor civil service wilson carried out his principles by enlarging the classified list of posts which could be entered only by competitive examinations. a genial man, who could be a delightful companion, full of experience and of scotch presbyterian humour, president wilson had a powerful mind, an amazing skill of expression and an in- tense belief in the power of ideals to arouse and inspire a pcople. he thought he had no need of conferences, of feeling the public pulse, of mixing with members of congress and party leaders, of personally greeting the average voter. 70 united states finance and tarif 1913.—the election of 1912 carried with it a safe democratic majority in the senate and a two-to-one majority in the house. on april 8 1913 the president created a surprise by appearing in person to address the two houses of congress jointly at the opening of a special session, instead of sending a written message. this practice he followed throughout his administration, with great effect. he felt himself not only chief magistrate of the nation, but head of the democratic party, and practically the premier of the government from whom ought to proceed plans for important legislation. a special session was called particularly to frame a tariff act. representative underwood, chairman of the committee of ways and means, gave to the new measure his name and expe- rience. the purpose of the statute was to enlarge the {ree list of raw materials, foodstuffs and some manufactures, to make a moderate reduction of the protective dutics, and to correct some of the things which made the payne-aldrich act unpopular. included in the statute was an income-tax, at last made possible by the adoption of the 16th amendment (feb. 25 1913), which was expected to supply any revenue which might be lost by the reduction of duties (see inccomme tax: united states)..a ‘yvarifl commission was created to make researches into the workings of the act and to find out what was the actual difference between the cost of labour in the united states and in foreign countries (oct. 3 1913). the powerful influence of the president was again exerted to secure a systematic banking system, with the beit that (dec. 23 1913) the owen-glass federal reserve bank act was added to the statutes (sce banking). the principle was to create a national institution, which was to be divided into 12 regional banks, in each of which was a body of directors, besides the cen- tral organisation in washington. in these 12 subdivisions clus- tered such banks, whether national or state-chartered, as chose to accept. the new institution was also to issue a new form of paper money. the system from the start was recognised as a large national asset. at the same time a rural credits act was passed (july 17 1916), which created a special group of banks to lend money: to farmers on the security of their.farms. both banking systems worked smoothly and efficiently. transportation, 1914-6.— under a statute of march 1 1913 the interstate commerce commission was authorised to enter on an elaborate valuation of the railway property throughout the country as the basis of a judgment as to what was a reasonable profit. the supreme court supported recent legislation by com- pelling the pipe-lines to accept the status of common carriers, and by breaking up some of the railway combinations, par- ticularly that of the new york, new haven and hartford. down to the middle of 1916 the railways were doing well on the pre- vailing low rates for passengers and freight. the panama canal was now approaching completion. this was the first great agency of transportation owned and managed by the u.s. government. president wilson used to the utmost his personal iniluence for a bill to repeal discrimination in favour of amcrican-owncd vessels, of which the british govt. had complained; it became an act, june rs 1914. on aug. 15 the first steamer passed through the canal from sea to sea and in a few months the canal was paying its own way. a new question of transportation was arising through the rapid development of motor vehicles. at first a plaything, then a luxury, by 1908 they were spreading through- out the land. the attention of the whole country was called to the absolute necessity of good roads. in 1916 congress passed an act appropriating approximately $85,000,000 to be paid in about five years to such states as would contribute equal sums for good roads. the trusts, 1914.—a few hours before the end of president taft’s term a congressional committee reported against the “ preat and rapidly growing concentration of the money control and credit in the hands of a few men.” in june rgr4, in a suit involving the international harvester co., the u.s. supreme court upheld state anti-trust laws. the ring of law and justice seemed to be drawing closer round the great offenders. yet these offenders still flourished; and huge corporations, such as the u.s. steel corp., paid dividends on thousands of millions in stock and bonds. president wilson urged successfully a radical amendment of the sherman act (oct. 15 1914) against dis- criminating freight agreements, interlocking directorates, and holding corporations. another branch of the same attack on the money power was the federal trade commission, created sept. 26 tor4, which was an attempt to find means of dealing with corporations engaged in interstate commerce other than banks and common carriers. in the same direction went the “ blue sky laws ” passed in this period by many states, to break up the practice of floating the stock of companies which had no property more substantial than the atmosphere. labour, 1913-7.—the example of capital, in calling itself into masses ion great to be controlled by ordinary means, was fol- lowed by labour. the american iederation of labour was a loosely woven council of representatives from the great trade organisations. it did not undertake to call strikes, though it was likely to support them, and it had great effect in bringing about combined and simultaneous demands for the various items in the labour programme. the leaclers fixed upon an eight- hour day as the basic working time. the next item was the minimum wage, which made its way slowly and was not alto- gcther acceptable to labour. another demand was that american citizens should have preference over aliens in cmployment. labour in general was unfriendly to child labour and was, there- fore, interested in a federal statute of sept. 1 1916, to prevent the transport of products made by child labour under specified conditions. as the labour unions gained in numbers and strength they used their energies in favour of the “closed shop,” a system by which union men refused to work in any establishment where men not members of the union were also employed. from this idea rapidly developed the system of sympathetic strikes, in which members of one union back up another union by refusing to handle or use or transport products of nonunion labour. ifence boycotts, and perhaps ruin for employers who had no difficulty or quarrel with their own workmen. never in the history of the united states had there been so many and so violent strikes as from 1913 to 1917. the i.w.w. organised long and tumultuous strikes among the silk weavers of paterson, n.j., and the textile workers of: lawrence, mass. in the trying years of 1916-7 violent strikes were directed not only against non-striking workmen, but against the public peace. in july 1917, at bisbee, ariz., the tables were turned. a kind of vigi- lance committee seized and carried out of town, with orders not to return, about 1,200 striking miners and their friends. no jury would convict those responsible for this illegal action. the most serious of all these labour struggles was the threatened strike in 1916 of the large and very powerful unions of railway employees. president wilson intervened and all but compelled congress to pass (sept. 3 1916) the adamson act by which a basic eight-hour day was secured with pro rata for overtime. the supreme court upheld this statute, which went to the furthest verge of the federal government’s authority over labour matters. social movements, 1913-7.—these struggles between the rail- ways and the courts, between the trusts and congress, between labour and state governments, between strikers and the presi- dent of the united states, are part of american history because they were vital to the welfare of the country. neither the capi- talist nor the labourer respected the restraint of state legislation. it was apparent that in the long run the country would go back to the “ might makes right ” of the middle ages, unless some peaceful settlement could be made by a force that must be respected. the farmers everywhere were aroused, for they looked on railways as hostile to their interests, by overcharging for carrying their products; and they resented the trusts, which they believed raised prices. the anti-liquor forces steadily developed strength. they urged out-and-out prohibition and secured it in more than half the states. at the end of 1917 war prohibition was enacted by the federal govt. and also pro- hibition in the district of columbia. on dec. 19 1917 a two- united statis thirds majority was secured in congress for a prohibition con- stitutional amendment—the 18th amendment—which was at once submitted to the states. woman suffrage also advanced steadily. congress submitted a woman suffrage amendment in tg19. thus changes that had been so years on the way finally were brought about by the force of public opinion. a change was also visible in the attitude of the country toward immigra- tion which congress was determined to reduce by an intelligence qualification. a new bill (feb. 5 1917) was passed over wilson’s veto. besides a literacy test it raised the head-tax to $8 and excluded oriental labourers coming from certain geographical areas, which did not include japan but did apply to hindus and malays. educational progress, t909-21.—the decade following t909 was marked by a new sense of the possibility of general educa- tion, and the need for a more direct, searching and _ practical type of education. the country was accustomed to a system of graded public schools, offering the “‘ common school education,” and leading up to a few endowed and private schools, and to thousands of public high schools, which were expected to prepare the small proportion of young men who went on to institutions of higher education. by 1910 girls were given about an equal chance in the public elementary and.secondary schools, and in a large number of coeducational colleges and universiiics, besides a small group of high-class colleges open to women only. second- ary education was subdivided into literary, commercial and industrial schools. the institutions of higher learning set up new professional departments, including the intensive study of education and separate schools of science, engineering, agricul- ture and other specialities. private enterprise created a great number of so-called business colleges, and a few very eflicient trace schools. nevertheless there was general complaint that the schools did not relate themselves to the life of the community. a national society for the promotion of industrial education became the focus of 4 movement to organise what now became generally known throughout the country as vocational education. a national commission was appointed by president wilson, in 1914, to consider the whole subject. the resulting smith-hughes act (feb. 22 1917) created a federal board for vocational education which framed an elaborate plan for instruction in the four vocational fields of agriculture, commerce, industry and home-making. the act promised to appropriate federal funds rising to about $7,000,000 in 1925 and therealter, to be paid to such states as would match these funds dollar for dollar. private enterprise accompanied this movement by building up advanced engineering and trade schools of a high type, such as the carnegie institute at pittsburgh; by improving the private commercial schools and by establishing advanced schools of business training in colleges. some of the great manufacturers, especially in the automobile trade, set up schools within their own works, when the united states plunged into the world war in 1917, government established a variety of vocational schools to train the men for the numerous specialities of military service. it made use of the shops and other vocational facilities of the existing schools and colleges. great sums were raised by special “ drives ” among the alumni and friends of the endowed institutions, and the state universities were allotted hitherto unheard-of grants. the strictly vocational schools were admitted into fellowship with the other institutions. (see eptcation: united states.) wilson's foreign policy —woodrow wilson was naturally a man of peace, and so emphatically was secretary bryan. they set themselves to aid the cause of general peace by arbitration treaties. secretary bryan prepared a clefinite project for treaties by which the nations concerned should, in case of difficulties, pledge themselves to submit their grievances and claims to a special examining commission and to abstain from war or prep- arations for war until the commission should have had time to report, the presumption was that a sensible nation would submit to the judgment of an impartial tribunal. there was little difficulty in concluding more than 30 treaties upon this ria basis in the course of a vear, but none was pui into effect. the truth is that the american people as a whole were little accus- tomed to international questions and had no definite foreign policy. philippines and caribbeans.—the govt. of the philippine is. was altered by setting up the first filipino assembly in 1908. in response to the pleacing of president taft, congress in 1909 grudgingly included them within the customs boundary of the united states. under president wilson, gov.-gen cameron forbes was withdrawn and burton harrison was appointed his successor, to carry out a policy of liberalisation and preparation for independence. the filipinos were allowed to hold a majority of the seats in the commission, which became a kind of adminis- trative upper house. filipinos were substituted for americans in many of the civil offices. the people were thus given a definite opportunity to govern themselves. the jones bill, enacted aug. 29 1916, greatly enlarged the power of the popular part of the government, and the commission ceased to exist. the act promised that the filipinos should be given their independence when their ability to govern themselves should be demonstrated. at the other end of the american sphere of influence, cuba, while nominally independent, remained a protectorate of the united states. qn march 2 1917, the porto ricans were for the first time made american citizens and received a popular govern- ment of two elected houses. president wilson continued the administration of the dominican republic which dated back to roosevelt. he also took military control of haiti in to14, and followed it by a controlling treaty which was ratified by the senate (feb. 28 1916). he carried even farther taft’s policy in nicaragua by a treaty (ratified aug. 14 1914) which converted that country into a virtual protectorate. another areca came under control of the united states by a treaty for the annexation of the danish west indies proclaimed in 1917. these islands were duly organised under the title virgin is. of the united states. little opposition was made to this creation of a virtual empire, including dependent provinces. latin america and the orient, 191 3-7.—the peaceful policy of the united states towards its neighbours was severely tested by disturbances in mexico. in 1913 madero, president of that turbulent republic, was murdered, presumably by order of huerta, an insurgent officer, who thercupon declared himself the head of the state. the almost invariable policy of the united states had been to recognise any de facto head of a latin-ameri- can govt. without inquiring into the source of his title. but on this occasion president wilson adopted what he called a policy of “ watchful waiting.” he steadily refused to recognise huerta, against rival revolutionists. in april ror4 a trifling dispute arose at tampico as to a salute of the american flag, and wilson, apparently yielding to strong public sentiment, ordered the navy to attack and capture vera cruz, of which the united states remained in possession for some months. the real object was to discredit huerta, who was compelled to flee the country. when in rors the brigand villa raided the town of columbus, n.m., the president ordered a military expedition under general pershing to advance into the interior of mexico. it remained about eight months, without capturing villa or accom- plishing any other definite result. the three friendly nations of south america—argentina, brazil and chile, commonly known as the *‘ a b c powers ’”—offered a kind of mediation. at their suggestion carranza was recognised as president by the united states. disorder continued; and in may 1ro020 carranza was overthrown and killed by the troops of obregon. for a time thereafter mexico emerged from the state of revolution. this long controversy was highly disturbing to the desired close relations with latin america in general. in spite of five pan-american congresses and several scientific congresses, in spite of visits of roosevelt and of root and knox as secretaries of state to south america, there could be no harmony if the united states were to continue ‘“‘ administering ” small and defenceless latin american nations and waging undeclered wars with mexico. nevertheless, president wilson in a speech at mobile (oct. 27 1913) declared that the united states had no 872 designs on the territory or independence of its latin-american neighbours. colombia, too, had a grievance arising out of the loss of the isthmus when the panama canal zone was annexed in 1904. the succeeding republican administration in 1921 secured a treaty to pay to colombia $25,000,000 as a kind of reparation. in regard to the far east, wilson had little opportunity to develop a policy. he began by disavowing the plans made under the advice of president taft for a loan by american bankers to china. he argued with the people of california because they insisted on passing a statute restricting alien ownership of lands bv japanese residents. the world war soon made the united states and japan temporary allies, and on nov. 2 1917 the lansing-ishii note, on the same plan as the root-takahira note of 1908, set forth that the united states recognised japan’s ‘“ special interests in china.” (see japan). neutrality —the united states in 1914 expected to remain indefinitely at peace, as was shown by lack of anything that could be considered national military preparation in the terms of modern warfare. when on aug. 4 1914 president wilson issued a proclamation of neutrality as between the two groups of european nations just engaging in a gigantic struggle, the authorised military establishment was about 107,000 men, of whom some 87,000 were enrolled. the united states had not one military aeroplane of approved type; had only four modern heavy field guns and no transport for them; had not a trench bomb or a mine-thrower; nor considerable supplies of any weap- ons or equipment except 800,000 excellent rifles; nor any oflicers experienced in the kind of warfare used in recent wars; nor any instruction camps for officers or men. the navy included a fleet of battleships recently built, but weak in small and swift vessels and particularly in submarines. the militia proved to be of little service, though secretary bryan publicly declared that the nation necded no preparation, for it ‘‘ could raise a million men between sunrise and sunset.” neither the foreign policy nor the diplomatic organisation of the united states was fitted for such a crisis. he traditional monroe doctrine was expected to keep the nation out of dan- gerous controversies with the other american states. the coun- terpart principle of isolation forbade the united states to take any part in european crises or wars. as a neutral it stood by the principle of “‘ freedom of the seas,” by which was meant in particular the right to carry on commerce with all belligerents in case of war, subject to the limitations of the then acknow]- edged international law as to contraband and blockade. at the beginning of the war thousands of american tourtsts and resi- dents were caught in the mobilisation of the great european armies, and the government aided in bringing them home. a few weeks later relief was organised on a large scale for the belgian people, most of whose country was overrun and held by the germans. this system soon included french refugees, the unhappy peoples of serbia and asia minor and other combatant or non-combatant sufferers, besides the sick and wounded of the contending armies. difficulties with the belligerents, 1914-7.—the united states was compelled at once to take into account the relation between the war and american industries, commerce and finance. heavy loans were placed in the united states by great britain, france and russia. as fast as the money was borrowed it was spent in the united states for the purchase of food, clothing, animals and especially munitions. president wilson issued a proclamation (aug. 18 1914) advising that the people remain neutral “ not only in act but in word and in thought.” such neutrality was impossible. in the first weeks of the war german commerce was driven from the seas. the command of the sea by the allies very nearly cut off trade of any kind between the united states and germany and austria, while commerce continued in ever-increasing volume with england and france. this dis- parity led to protests on the part of the german govt., and also to lawless acts perpetrated or directed by agents dispatched by the german govt. for the purpose of paralysing the munition factories. violent antipathies were caused by the german methods of carrying on war, and particularly the treatment of united states the occupied areas of belgium and france. the american popu- lation included hundreds of thousands of citizens of the bellig- erent countries, many of whom attempted to return to their homes in order to serve in the army. the road for such recruits was blocked for the germans and their allies, but open to the allies. for the first time in half a century the united states found within its own borders the sharpest division on questions of foreign policy. on the other hand, the war trade brought immense profits. the favourable balance of trade rose from $690,000,000 in 1913 to $1,770,000,000 in 1915 and $3,000,000,000 in 1916. this prodigious debit was balanced by about $3,000,000,000 sent to the united states in securities and gold, besides $2,000,000,000 in foreign war bonds. under these circumstances genuine neutrality was out of the question. a decided preponderance of sympathy developed toward the western allies, who were prof- itable customers, were in close and almost undisturbed inter- course with the united states and were considered to be fighting against a ruthless, arrogant and dangerous autocracy. international controversies, 191.j-7.—the internal tension of the united states was tightened by the insistence of germany on the right to use new weapons, tactics and practices of war, without the traditional limitations of international law, without mercy to non-combatants, on the basis of “‘ a law of necessity.” no able-bodied german man or woman was really a non-com- batant; the germans insisted that they must regard all civilian enemies as combatants. there was no way to stop them without using similar new methods of warfare. great britain, which in the london maritime conference of 1912 had shown some disposition to enlarge the privileges of neutral commerce, now seized american ships and shipments, and arbitrarily extended the list of contraband, until (dec. 26 1914) a dispatch signed by secretary bryan, but expressing the conclusions of president wilson, made a protest. in the course of rors the british govt. began to apply the american principle of *‘ continuous voyage ” as applied by the united states during the civil war to cover shipments to neutral ports in cases where those shipments were likely ultimately to reach germany; and also where they might replace products of the neutral countries that could thus be spared for germany; or if the neutral coun- tries declined to make a hard and fast agreement not to reship. in1916 the british were practically blockadingneutral european ports and capturing vessels, american and other, wherever they liked.1 the central powers set up a new war practice of using submarines as commerce destroyers. the american govt. protested. a crisis came through the sinking by a submarine of the british passenger liner ‘ lusitania ” (may 7 1915), with the loss of 113 american lives. that sinking was a deliberate act of the germans to test the temper of the united states. appar- ently they were greatly surprised when the people of the united states rose in resentment. president wilson, who had earlier insisted on “ strict accountability ,” insisted on a sharp protest. mr. bryan thought milder measures sufficient, and on that issue resigned the secretaryship of state (june 8 1915), being succeeded by robert m. lansing. the correspondence went on for months until (may 4 1916) germany at last informed the american govt. that merchant ships would not be sunk with- out warning and an opportunity to save non-combatant lives. meanwhile, throughout 1915 and 1916, systematic violations of the neutrality laws of the united states by germans and austrians caused the dismissal of the austrian ambassador to the united states and of the two most obnoxious members of the german ambassador’s staff. it was the belief that they would hesitate at nothing during the war. “ preparedness.” —by the end of ro1g it became clear that with or without their own desire, the people of the united states might find themselves involved. president wilson desired peace. a day or two after the sinking of the “ lusitania ”’ he spoke of there being such a thing as “a nation that was too proud to fight.”” in his message of dec. 1915 he urged national defence and the protection of american shipping. long before 1for a discussion of the legal principles involved see blockade. united states this time the war had brought about a violent change in the economic conditions of the country. the great demand for food- stuffs raised the price of grain and other farm products. the high cost of living became a political issue. the munition fac- tories offered unheard-of wages and drew hundreds of thousands into improvised towns. the war caused a great change in immigration. hundreds of thousands of men left the united states for europe, while the net immigration fell from 1,200,000 in 1914 to 300,000 in 1916. the election of 1916.—in the midst of this turmoil and con- fusion of business came the preliminaries of the presidential election of 1916. president wilson carefully abstained from taking sides between the allies and the central powers; but the aggressive submarine policy of germany provoked a much sharper tone than did the aggressions by the english. he felt the need of caution, particularly because a growing group of men inside and outside congress, among them roosevelt, were coming to the conclusion that eventually the united states would have to join in the war. the republican nominating convention met in chicago, june 7. a strong effort was made by friends of roosevelt to capture the republican convention, but the “ stand-pat ” republicans had control of the party machinery. the pro- gressives—who in nov. 1914 had cast 1,800,000 votes for con- gressional and state candidates—also met in convention in chicago. their purpose was to compel the republicans to nominate roosevelt as the only means of healing the breach. that effort failed: the republicans nominated justice hughes of the supreme court, who had been a reform governor of new york state. the days of the progressive party were numbered. in the democratic convention (june 14) there was practically no opposition to wilson and his running-mate t. r. marshall. the platform in many respects was similar to that of the re- publicans. both favoured woman suffrage, the conservation of national resources and national enforcement of child-labour laws; both reaffirmed the monroe doctrine. but the democrats upheld tariff for revenue only; they endorsed the promise of ultimate independence to the filipinos; they commended the establishment of a federal trade commission; and they ap- proved a merchant marine owned and operated by the federal government. in the campaign roosevelt publicly supported hughes, though it was well known that he felt no enthusiasm for him. the only “ slogan ” that caught the public ear was favour- able to wilson: “‘ he kept us out of war.” on election day wilson receivedl about 9,000,000 popular votes against 8,500,000 for hughes, and was chosen by a very close vote in the electoral college. the war and the peace president wilson stood in a very strong position in the united states and in the world. he had been re-elected. his policy was approved. ile felt that he had the nation politically united. he soon began to take a firmer tone against the allied system of neutral blockade. wilson hoped that the one great neutral nation might bring about peace. on dec. 18 1916 he sent an appeal to the warring powers to come to an understanding of each other’s demands. on jan. 22 1917 in an address to the senate on foreign affairs the president described the replies he had received to the identic note of dec. 18. the central powers united in a reply which stated merely that they were ready to meet their antagonists in conference to discuss terms of peace. the entente powers have replied much more defi- nitely, and have stated, in gencral terms indeed, but with sufficient definiteness to imply details, the arrangements, guarantees and acts of reparation which they deem to be indispensable conditions of a satisfactory settlement. he went on to speak of an “‘ organised common peace,”’ and of a ** peace without victory ’’; he outlined the principle of self-deter- mination, declaring that ‘“‘ governments derive all their just powers from the consent of the governed,’ and that “no right anywhere exists to hand people about from potentate to potentate as if they were property.” the practical german an- swer was a brief note communicated by ambassador bernstorff 873 to secretary lansing (jan. 31 1917), withdrawing the conditional pledge given in may 1916 and announcing that the germans would shortly resume unrestricted submarine warfare. high military authority in germany was convinced that the ameri- cans would never sacrifice the large profits of export trade and incur the huge expenses of war merely for the sake of a question of neutral maritime rights. immediate steps were taken to make the american navy ready for war. for a time the president dallied with a plan of arming merchant ships. one result of the controversy was the adoption by the senate (march 8) of a mild and cumbrous method of cutting short debate by closure. during feb. and march rot7 a few american vessels were torpedoed by german submarines. on feb. 8 the government published an inter- cepted german despatch to the mexican govt. asking it to join in the war, promising it the “‘ former mexican provinces,” long incorporated in the united states. the participation of the united states in the war was now inevitable. a formal declara- tion of a state of war was signed by the president (april 6) after a house vote of 373 10 50 and a senate vote of 82 to 6, which stated that war had already been begun by germany. rela- tions with austria and turkey were at once broken off, but the declaration of war with austria was delayed until dec. 7 and no declaration was ever made against turkey or bulgaria. the breach with germany was a spontaneous national action representing a national belief that the united states could no longer live in peace with such a nation as germany had become. as president wilson put it the war was to make the world “safe for democracy.”! moreover, there was widespread sympathy with the three western powers closest to the united states in their political principles and system of government. wrath was aroused by the german treatment of the people of belgium and other conquered countries. in some minds there existed a genuine and well grounded fear of a future attack upon the united states by germany if the resistance of the allies should be destroyed. amid all the motives for the war, the one thing was that the american people recognised germany as an enemy, and the enemies of germany as natural friends and partners in ihe great enterprise of subduing “the hun.” wwur amfeasures.—passionate national spirit, patriotism and urgent reasons for war were all useless unless the united states could enrol, train, equip, convey and continuously supply an immense army. the american navy, though the vessels were good and the crews skilled and well commanded, was in no posi- tion to give direct aid in the process of destroying the german army. what was most needed was to raise and convey to the fighting front a large force of american troops. soon after the declaration of war by the united states, mis- sions from the various allied countries were sent to america. the british mission, headed by arthur (now lord) balfour, british toreign secretary, reached halifax april 20 and pro- cecded to washington. the french mission, headed by rene viviani, the former premier, and including marshal joffre, landed april 24. other missions came from italy, belgium, russia, rumania and japan. the united states was able at once to help the western allies in their pressing financial difficul- ties. taxes were low and little felt; money abounded. under acts of congress beginning oct. 17 1917, the allies received essential credits, which amounted eventually to $9,500,000,000. these enormous payments were made possible by the liberty loans. in june 1917 4,000,000 people joined in offering $3,000,- 000,000 to the government; and at the end of the war the in- terest-bearing debt had increased from $972,469,290 on dee. 31 1916 to $25,234,496,000 in 1919. these loans were supple- mented by the war revenue act (oct. 17 1917) and later stat- utes, which laid a variety of new taxes, increased the income- tax heavily, and combined with it an excess-profits tax to bring “to fight thus for the ultimate peace of the world and for the liber- ation of its peoples, the german peoples included; for the rights of nations great and small and the privilege of men everywhere to choose their way of ifeand of obedience. the world must be made safe for democracy.” (message to congress april 2.) 874 into the treasury unreasonable profits likely to be made in the war industries. all traditional limitations on raising an army were discarded. fix-president rooseveit asked permission to recruit a division for a special volunteer iorce, but the president refused him a com- mission, on may 18 the selective service act was passed which provided for the enlistment of a million men by “ selective draft.” when called up, the men had to be clothed, housed, fed and drilled. thousands of officers were necessary, and training camps, both for men and officers, were established on a vast scale. in may 1917 a few american destroyers reached england. on june 9 gen j. j. pershing, who had been selected as com- mander-in-chief, arrived in england. on june 26 a small detach- ment of u.s. troops reached europe. new branches of military service were established, among them the chemical warfare service which provided materials for lethal gases and for gas- masks and other means of resisting the encmy attacks. congress, on july 24, appropriated $640,000,000 for aviation. by aug. about 700,000 men were enrolled in the army and 230,000 in the navy. control of industry and transportation.—the establishment of huge war industrics put a great strain on the industry and transportation of the united states. on aug. ro 1917 a food control act gave the president powers never before conferred with regard to food and fuel (see foop suppry). herbert c. hoover, of california, who had distinguished himself in the management of the red cross in europe, was made food ad- ministrator with large powers. before the war ended he had established ‘‘ meatless”? and ‘ wheatless ” days; the price of grain was fixed; eventually the farmers were assured $2.20 a bushel for their wheat crops. h. a. garfield, fucl administra- tor, carried through drastic measures for stimulating the pro- duction of fuel, regulating shipments and distributing supplies. on march 2t the federal control act placed the management of all the railways in the country in the hands of the government during the war, and for a period after its close. w.g. mcadoo, secretary of the treasury, was made director-general of the railways; later walter d. hines, an experienced railway man, succeeded him. one of the most serious necds of the times was a merchant fleet adequate to carry across the atlantic the army and its supplies. the government undertook the great task of improvising such a fleet, and vast construction was authorised in both steel and wood. war activities at home.—at once after the declaration of war the american people through official and unolficial channels gave support by civilian service and money contribution, among the multifarious public agencies was a committee on public information, of which george creel, journalist, was chair- man, which kept up a lively system of publicity aided by the nitional board for historical service. a censorship board censored all communications—mail, cable, radio—passing between the united states and foreign countries. as early as aug. 29 1916 a council of national defence was created by act of congress. under it were created numerous special organisations. the council of national defence appointed a women’s committee to co-ordinate the patriotic work of the women throughout the country. the advisory commission of the council of national defence created a committce on trans- portation and communication, a railroad war board under- took to secure unity of operation among all the railways, to subordinate private interests and to climinate competition. important coastwise steamship lines were added to this system. the four large express companies were combined under the name american railway express company. in 1918 the government assumed control of telegraph, telephone, marine cable svstems and radios. many scientists were engaged in research through- oul the country under the national research council. com- merce also was regulated. by the espionage act of june 15 ror7 the president was empowered to control exports, and he created a bureau of export licenses and a trade board. a list was prepared of firms throughout the world with whom americans should not united states trade. the government formally took charge of all foreign trade feb. 15 1918, and seized all german ships interned in u.s. ports and ships under the dutch and other neutral flags. samuel gompers, president of the american federation of labour, co-operated in organising a committee on labour, and a mediation commission was appointed. a national war labour board (april 9 1918) acted throughout the country asa kind of “supreme court ” to settle labour disputes. for the recruiting of essential labour and directing it into necessary industries a u.s. employment service was created. several private war agencies were established. chief among these were the american national red cross, which was to be found wherever there was fighting, sickness, suffering or starva- tion; the y.m.c.a.; ¥.w.c.a.; knights of columbus (catholic); salvation army; jewish welfare board; american library assn. and war camp community service. enemies in the united states —while the people of the united states were practically a unit in favour of a vigorous prosecution of the war, a few, chielly foreign-born or sons of foreign-born, were opposed to the war or more often to the nations in concert with which, and partly for whose salvation, the united states was fighting. ever since 1914 the country had been irritated and aroused by a series of illegal, violent and often murderous acts which were traced to german and austrian agents. such were determined etforts to blow up the international bridge at vance- boro, me., and the locks of the welland canal, ont. bopp, ger- man consul-general at san francisco, was convicted and impris- oned for aiding german vessels in the pacific in defiance of neu- tralitvy laws. rintelen (after the war specially rewarded by the german govt.) was sent to the federal prison at atlanta for aiding in placing bombs on outgoing vessels with intent to destroy them. in 1910 eugene v. debs, presidential candidate four times of the socialist party, was sentenced to ten years’ imprison- ment for advising men not to enlist. victor berger, member of congress from wisconsin, was convicted and sentenced for dis- loyalty, then re-elected to congress, which refused to seat him. the i.w.w. took advantage of the general confusion to en- gage in a campaign of disturbance and violence in the west; as many as 97 leaders of that order, including william haywood, were convicted of disloyal conduct by one court at one time. these prosecutions were supported by the trading with the enemy act of oct. 6 1917, the espionage act of june 15 1917 and the act of april 18 ror8, relating to alien cnemies. several thousand german and austrian citizens who were believed to be dangerous were interned. two pro-german editors were pun- ished for disloval utterances in a german-american paper. these prosecutions against american-born citizens, naturalised citizens and unnaturalised foreigners continued for two vears after the end of hostilities. on dec. 25 1921 president harding commuted the sentences of debs and 23 others who had been convicted under the espionage act, but a number of persons still remained in jail under sentences for disloyal action. the navy.—beginning with patrol work on the american coast as soon as war was declared, the activities of the u.s. navy extended to co-operation with the british and french in the hunt- ing down of submarines and the protection of convovs and in the laying of the north sea mine barrage, extending from the ork- neys to norway. the american navy had some part in blockad- ing the austrian coast of the adriatic, and it participated in main- taining that allied command of the sea which in the end was fatal to germany. by a remarkable convoy system ovcr 2,000,000 troops were carried safely 3,000 m. overseas to france. in this work the utmost secrecy was necessary. in june 1917 a few cruisers and transports were provided and the first troops sent across. at intervals vessels assembled and sailed on definite routes under the protection of destroyers. according to the re- port of the secretary of the navy (1920), 911,047, or nearly half of the american troops, were carried on u.s. navy transports; the rest chiefly by the british. not one cast-bound american transport was torpedoed by the german submarines; and only three ships were sunk on their return voyage. three small fight- ing ships were destroyed by the enemy. united states 875 during the campaign of 1918 efforts were made to extend the possible field of enlistment by the passage of the man power act of aug. 27. all men between 18 and 45 were required to register with a view to service if needed, and 11,000,000 were registered. by a statute of oct. 6 1917, provision was made for a system of military and naval insurance available for all men in the service. the american army atthe front, 19178.—to the army was given the gencral name of american expeditionary force (a.e.f.). general pershing officially reported that at the date of the armis- tice, nov. 11 1918, there were in europe 2,071,463 american offi- cers and men (approximately 82,000 officers). on the same date, according to figures compiled by the war dept., the number of troops encamped in the united states was 1,634,499 including 104,155 officers, a total of 3,700,000 enrolled. actual contact with the enemy was first established by the american troops nov. 3 1917, at a point between arracourt and parroy. during the year 1917 the transport and supply service was perfected, bor- deaux and other french ports having been assigned by the french govt. as american bases. the rail communication to the front was improved and troops as they arrived were drilled and organised. the military errors of the civil war and the spanish war were not repeated. no civilians received commissions to command large bodies of troops. in theory no soldier was sent under fire unless he had been trained in trench and shock war- fare, though many green troops were put into the front line in the crises of the campaign. the intention of marshal foch was touse the americans to reinforce the allied armies. general persh- ing, supported by president wilson, insisted that the american army should be operated as a unit subject to the supreme com- mand of foch (march 28); this arrangement was accepted also by the english. the first offensive against the germans was on may 28, when cantigny was captured by the americans. from that time on to the end american troops were on the firing line. belleau wood was taken by them on june i1. next day american airmen made their first hostile ascent. on july 15 the germans began their last desperate attempt to reach paris and were stopped by the french and americans who tenaciously clung to chateau-thierry. a small american detachment was sent also to the italian front. during aug. the germans were steadily giving ground. from sept. 11-3 the americans, operating alone, broke the saint-mihiel salient and drove out the germans, capturing 443 guns and 16,000 prisoners. more troops were steadily reach- ing the front. from sept. 26 to nov. 11 the army took part in the heavy fighting of the meuse-argonne campaign. these operations terminated in the capture of sedan, which (nov. 6) broke the german rail connections and led to a request next day for an armistice. in these operations the casualtics, to nov. 11 1918, were as follows: killed in action, 35,556; died of battle wounds, 15,130; died of other wounds, 5,669; died of disease, 24, 786; total deaths, 81,141; wounded, 179,625; missing, 1,160; prisoners, 2,163; total casualties, 264,080. the fierce campaign of 1918 was the final effort of the germans. no one can say positively that the american army in the field was the chief element that insured victory; but there is not a doubt that the triumphant success in raising and transporting incessantly troops, provisions and supplies was to the german mind convincing and disheartening evidence that the govt. and the people of the united states, with all their power and poten- tiality, would stand by the allics indefinitely. on nov. 11 1918, by the armistice in which the american armies shared, the germans admitted their defeat and at once began to evacuate the occupied regions and also portions of their own national territory. rehabilitation in america, 7919. —the task of post belluin economic adjustment was long and costly. at the end of the war the federal govt. by means of war statutes was controlling the food supply and its distribution, manufactures, the coal supply and shipments, railways, telegraphs and telephones, forcign commerce and shipping. it took over the property of aliens through an alien property custodian. it settled conditions of interstate labour and of labour in other fields. for foreign com- merce there was still a shipping board, an emergency flect corporation, a war trade board and a war finance board. two million american soldiers were overseas and wanted to come home as soon as possible. the united states spent on the war about $35,500,000,000, including $9,500,000,c00 lent to the al- lics. expenditures after peace came continued ona scale far beyond any previous experience of the country. in the course of six months after the armistice, about two- thirds of the troops were brought back, leaving behind them cnor- mous stores, large parts of which were sold at heavy discounts to european governments. general pershing, the only u.s. military man of high rank whose achievements caught the public eye, re- ceived the reward of the permanent rank of general. in sept. 1919 the american legion, incorporated by act of congress, was formed to look after the interests of the ex-soldiers. by 1920 the only american troops left in europe were an army of occupa- tion on the rhine of about 17,000. the election of 1918.—the armistice came a few days after the state and congressional elections of the autumn of 1918. the war was a national war. enlistments, whether volunteer or by draft, had no relation to politics. nobody paid any attention to the party afhliations of officers or men or civilian administrators and aids. nevertheless, a few days before the elections, oct. rs, president wilson issued a circular letter urging the voters to re- turn a democratic majority to the senate and the house; be- cause, if the republicans were successful, it would be considered an imputation upon the president. the warning was in vain: the result of the election made the new house decidedly republican and the senate republican by two votes. it was apparent, therefore, that the administration in making the necessary ad- justments after the war must take into account the preponder- ant opposition in both houses of congress. throughout the year 1918 the influence of theodore roosevelt was manifestly growing. he was by his whole nature a sup- porter of the war. he and his four sons volunteered for service, though, as he put it with plaintive humour: “ wilson has kept mec out of war.”’ efe was recognised as a republican and the most powerful republican. even his strongest political enemies ad- mitted that the party must reckon with him. as the months passed it became clear that he would be nominated by the re- publican convention of 1920 and in all probability would be elected president. but he died suddenly, jan. 6 rgr1o, leaving be- hind him a long roll of achievements and a place among the greatest of american statesmen and world figures. the task of peace —three great tasks remained for the uni- ted states when active war ceased. the first was to secure a settlement and register it in a treaty or scries of treaties, thus re- turning so far as possible to normal international felations: the second was to help in reconstituting the world and protecting it, if possible, against future wars. the third was internal recon- struction, putting an end to the special war laws and conditions and readjusting business, transportation and labour. the first two of these tasks are described in detail elsewhere (see league of nations; paris, conference of). in addition to the sug- gestions made in the winter of 1916-7 president wilson put for- ward on jan. 8 1918, during the height of the war, “ fourteen points ” (see focrreen points) which he considered a necessary basis for the peace of the nations and a subsequent world agree- ment. these points he enlarged in later addresses to twenty- seven. the germans afterwards asserted that the 14 points were an essential part of the armistice. several changes came about in the cabinet at the end of 1918. mcadoo resigned and was followed in the treasury by carter glass, a representative from virginia, who gave way in turn to houston, transferred from the dept. of agriculture, where he was succeeded by meredith. the peace conference.---in dec. 1918 president wilson de- cided that he would attend the necessary peace conference in person, and designated as peace commissioners with himself four others—secretary lansing, col. edward m. house of texas (his most intimate friend and political adviser), gen. tasker bliss of the army, and harry white, formerly minister to france. 876 these commissioners were not confirmed by the senate; only one of them was a republican, and not one was a member of either the senate or the house. to republicans it seemed that the president meant it to be a democratic peace as well as a demo- cratic war. in the peace conference of 1919 president wilson, as represen- tative of the richest and most powerful nation in the world, be- came one of the representatives of the four great powers—great britain, france, italy and the united states—who engineered the treaty. he had, and used, the opportunity to draw up a league and covenant which was a crystallisation of long-debated suggestions for a world confederation of states. president wilson was so interested in the project for the league of nations that when he found the french were not ready to adopt such a plan without some guarantee of protection, he signed a treaty of al- liance between the united states, france and great britain, pledging the united states to join in war in case of invasion of france by germany. american action on the treaty, 1919.—no one familiar with the temper of congress and of the american people should have supposed that such a treaty would be ratified. president wilson returned home for a short stay (feb. 24 — march 4) defending the general terms of the treaty and the covenant of the league of nations. on his return to paris, he reversed decisions made in his absence by col. house; and thereafter the close co-operation between the two able men diminished. on june 28 roto wil- son and his four commissioners signed for the united states the formal treaty of versailles, including the covenant of the league of nations, which was so interwoven into the text of the treaty that it was impossible to ratify one without the other. upon one of the subjects covered by the territorial adjustments of the treaty in which the american people felt a deep national interest—the continued occupation of shantung by the japanese—the presi- dent reluctantly gave way and consented to its retention by the japanese, in spite of the general adverse opinion in the united states. the treaty had many powerful supporters among all parties, particularly ex-president taft, the league of free nations asso- ciation and the league to enforce peace, in which a. lawrence lowell, president of harvard university, was the leading spirit. the senate was divided into strongly opposed groups. most of the democrats, under the lead of senator hitchcock, followed the president in favouring the treaty with the covenant as it stood. a group of republicans, headed by senator lodge of massachusetts, favoured “amendments” to the treaty and “ reservations ’’ to the league, which would have maimed but not killed the two projects. another group desired reservations that would practically destroy both. a small but implacable junto, headed by borah of idaho and johnson of california, were against both the treaty and the covenant in any form or with any reservations. the contest ostensibly centred about art. x of the covenant, under which the members of the league undertook “ to respect and preserve as against external aggression the territorial integ- rity and existing political independence of all members of the league.” the implacable group expressed fear lest the united states be drawn into foreign wars and insisted that “ no ameri- can soldiers or sailors must be sent to fight in other lands at the bidding of the league of nations.” the president, on the other hand, regarded art. x as the heart of the whole treaty. he de- clined at the critical moment to accept either amendments or res- ervations, except certain minor alterations. after strenuous de- bate and by a test vote, nov. 19 1919, the senate refused to ratify the peace treaty with reservations—the vote being 55 to 39 in favour, but not the necessary two-thirds. thus after five months’ discussion the treaty was rejected, and the united states was left in the situation of technically remaining at war with germany and austria though all hostilities had ceased a year before. president wilson believed, until the last moment, that he could force ratification of the treaty by his logic and influence. on sept. 26 1919, while on a speaking tour through the country in favour of the treaty, he was struck down by paraly- united states sis; when he rallied sufficiently to think of puklic business he continued to hope that he would recover. his advisers and clos- est friends joined in an attempt to minimise the extent of the president’s illness, though for months he was unable to see even members of his cabinet. the difficulty with the treaty and the league was that both were signed in paris by a body of so-called commissioners who represented no lawful authority except that of the president. whether president wilson, or the statesmen who opposed him in the senate, had the clearer view of the state of the world and the duties of the united states, whether the opposition could have been avoided by taking counsel with a larger group of competent men, cannot yet be decided. the fundamental fact is that the opposition to the covenant was strong enough to prevent the ratification of the treaty even with serious reservations. on march 4 1921 woodrow wilson accompanied president- elect harding to the capitol as the last act of his official life. he had been president for eight years, during six of which he was the undisputed leader of his party and of the nation. up to the fall of 1919 he carried all his points. he was responsible for a group of important revenue, banking and labour laws. he had a great hold on the affections and opinions of millions of his fellow citi- zens, and maintained the country’s dignity in war and peace. the people stood behind him in entering the war. he supported measures for organising and transporting millions of american soldiers. fora time in paris he was the foremost man in the world, and he succeeded in inducing foreign statesmen to accept a league of nations. at the height of his career he suddenly lost the pres- tige gained as war president of the whole country, was no longer accepted by his party, and ceased to be the one man who could appeal from congress to the people. before illness disabled him, he had already lost his hold upon the minds of the majority of his fellow countrymen. the ex-president lived in washington in re- tirement, physically unable to take any part in public affairs. he died feb. 3 1924. post-war problems presidential election of 1920.—the peace revealed underlying elements of dissatisfaction. the soldiers received in many states a money bonus varying in amount, and demanded a similar bonus from congress. the general public complained bitterly against the high cost of living, while many corporations contin- ued to make war profits in time of peace. a multitude saw their incomes and expectations reduced by the fall in the purchasing power of the dollar. as the presidential election came near, the democratic party was paralysed by internal dissensions over the peace treaty and by lack of the trusted leadership of the presi- dent; it had no fixed policy in foreign relations or reconstruction, and no commanding figure to put forward for the presidency. the republicans were rent by personal rivalries. the supporters of gen. leonard wood, gov. lowden of illinois and herbert c. hoover of california struggled against each other for the nomina- tion. the convention at chicago (june 9 1920) passed them all by, and gave the nomination to senator warren g. harding of ohio. he was backed by a strong group of stand-patters to whom, however, he seems to have made no pledges as to policy or appointments. calvin coolidge, governor of massachusetts, was put on the ticket as vice-president. the democratic con- vention held at san francisco was confronted with similar diffi- culties. the nomination went to gov. cox of ohio, a man little known in national affairs, with franklin d. roosevelt, a cousin of the former president, as candidate for the vice-presidency. in the campaign for the first time women were eligible to vote in every state. the election was a complete triumph for the repub- licans, who elected harding by a popular majority of about seven millions, and an electoral majority of 404 against 127 for cox, besides securing solid majorities in both houses of congress. the presidency was thus transferred to a man little experienced in national politics, whose task it was to take over the discordant elements and build out of thema coherent policy. president hard- ing began his administration under favouring auspices, although several members of his cabinet had been choser: in the face of united states strong opposition from various quarters. the new president early showed tact and ability in leading his party in favour of constructive action. within four months an epoch-making bill providing for a federal budget system was passed under his pres- sure (june 9 1921). he displayed keen interest in all attempts to restore business to a sound basis and urged prompt action in the assistance of the railways. by nature conservative, he laboured to bring the country back to a state of “‘ normalcy.” harding’s foreign policy was set on remaining outside the league of nations, while coming to amicable understandings on all relations with foreign nations. hence special treaties of peace negotiated with germany, austria and hungary were ratified by the u.s. senate oct. 18 1921. of world-wide importance was his call for a conference at washington of the different powers bor- dering on and interested in the pacific ocean, to discuss both questions of the pacific and the limitation of armaments. the conference assembled nov. 12 1921, and closed feb. 6 1922. the nine participants were the united states, great britain, france, italy, holland, belgium, portugal, china and japan. important agreements were signed: to limit construction of capital warships; against improper use of submarines; against gas warfare; for maintenance of the status of pacific insular possessions; and other questions involving relations with japan and china (see washington conference). before harding came to the presidency, two constitutional amendments had crystallised some of the results of the war. the various prohibition measures passed by congress on the ground that the use of liquor impeded the success of the war were powerful aids to the general arguments against liquor. twenty-eight of the states had absolutely prohibited the sale of liquor; and on jan. 16 1o1g, the 18th amendment, prohibiting the manufacture, sale, transportation or gift of intoxicants (submitted in 1917) was ratified by the necessary 36 states—eventually 46 states. it went into final effect jan. 16 1920, enforced by the volstead act (passed oct. 28 1919, over president wilson’s veto), which de- claredall liquors containing more than one-half of one per cent of alcohol to be intoxicating and therefore prohibited (see prron15i- tion). | | the active war patriotism and service of women, together with the votes they already enjoyed, caused congress (june 7 1919), to submit the rgth constitutional amendment, annulling all sex restrictions on suffrage. it was warmly supported by the former progressives and by president wilson, received the ratification of the 36th state, aug. 24 1920, and went into force aug. 26. conditions of the united states, 1921-6.—a study of the politi- cal, social, economic and international history of the united states must take account of the extraordinary national elation following the world war. the war produced a profound and permanent effect upon the national mind. it was the beginning of an enlargement of national life in every direction. from a world war out of which great britain and the british domin- ions and france obtained the administration of immense areas of territory under mandates subsequently confirmed by the league of nations! the united states claimed not a single square yard; but the nation felt free to enlarge its influence in the caribbean? and the pacific. hence the maintenance and enlargement of a policy of paramount interest in the three normally independent caribbean countries—cuba, haiti and the dominican republic; hence a strengthening of the control over the isthmus states of panama, honduras and nicaragua. to carry out great national policies, the united states could call upon a population expanding from year to year beyond any experience of mankind. the total populatior. rose from 92,000,000 (not including the philippine is.) in 1910 to 106,000,000 in 1920 1under these mandates, mesopotamia (‘iraq), palestine, a part of the bulk of the german possessions in africa, including tanganyika, and most of cameroons, and nauru were attributed to great britain; samoa was attributed to new zealand; former german south west africa to the union of south africa; and the former german south pacific possessions (except nauru and samoa) to the commonwealth of australia. (ed. e. b.) *the virgin is. (danish west indies) had already been acquired from denmark by unopposed purchase on jan. 25 1917. 877 and (estimated) to about 115,000,000 in 1926. net immigration of 818,000 in 1910 sank to 19,000 in the war year 1918, but rose in 1924 to 663,000. the wealth of the country, estimated at 187 thousand million dollars in 1912 was counted at 321 thousand millions in 1922, and still swelled in volume. against these fig- ures, what were such burdens as a national debt of twenty or twenty-five thousand million dollars, bearing nearly a thousand million of annual interest, besides five and a half thousand mil- lions of state and municipal debts? manufacturing, transporta- tion, mining, distribution and financial business were all prosper- ous and profitable. political survey, 1921~-6.—political rancour and party spirit somewhat diminished. president harding was a man of great personal charm, and he drew into his cabinet in march 1921, several strong men. secretary of state hughes had been a jus- tice of the u.s. supreme court and candidate for the presidency in 1916. secretary of the treasury mellon was a rich and success- ful banker and financier who had never before appeared in public life. herbert c. hoover, secretary of commerce, was brought in on account of his extraordinary gift of business organisation. henry c. wallace, secretary of agriculture, was the editor of a great agricultural newspaper. james j. davis, secretary of la- bour, was a welsh immigrant who had grown up in a steel mill. the other members of the cabinet were: will h. hays, post- master-general; edwin denby, secretary of the navy; john w. weeks, secretary of war; a. b. fall, secretary of the interior; and henry m. daugherty of ohio, attorney-general. president harding steered the ship of state easily, though without the commanding influence of a roosevelt or a wilson. he stood steadfastly against a high scale of expenditure. as a middle western man he was especially interested in the depressed state of agriculture. his foreign policy was strong and successful. his career was broken by a very brief illness, from which he died in san francisco aug. 2 1923. vice-president coolidge, formerly governor of massachusetts, a quiet unostentatious man, set up a new regime in the white house. he was always approachable, courteous and on good terms with the newspaper correspondents of washington, who have great influence over even presidential fortunes. he proved to be also a man of strong character, who consulted those whom he trusted, and then made up his own mind and stood by his de- cisions. his plain common-sense mode of life, his good temper, his patience with the two houses of congress, his ability to get on with other men, were combined with a keen judgment in public affairs. coolidge for the time being continued harding’s cabi- net, but later many changes were made, so that at the end of five years, secretary of the treasury mellon, secretary of com- merce hoover and secretary of labour davis were the only men left of harding’s first cabinet. investigations of officials —this growth in wealth and enter- prise reacted upon the govt. where even the president’s cabinet was disturbed and dismembered by a painful series of accusations and investigations. for some years the govt. had conserved cer- tain oil-bearing areas of public land as a supply of oil fuel for the navy. on april 7 1922 jurisdiction over this matter was trans- ferred from the navy dept. to the interior dept. by an order of president harding, the purpose of which the president did not understand. under this supposed authority secretary of the interior fall leased to the sinclair interest a large tract in the teapot dome district in wyoming, and also leased one of the california reserves to doheny, another oil magnate. for reasons never publicly stated, doheny turned over to fal] $100,000 in cash. these published facts led in 1924 to an investigation by a senate committee under the chairmanship of senator walsh of montana. secretary of the navy denby’s part, though no cor- rupt relation appeared, so aroused public opinion that he was forced to resign. he was replaced by judge wilbur of california. meanwhile attorney-general daugherty was shown to be in close relation with shady characters: a special committee of the senate under senator wheeler unearthed unexplainable transac- tions. daugherty refused to allow the files of his office to be ex- amined by the senate committee; whereupon president coolidge 878 demanded his resignation (march 28 1924). an attempt was made by republicans to turn the tables by prosecuting senator walsh and his colleague senator wheeler on trivia] and technical charges, but the courts dismissed the proceedings. criminal proceedings were instituted against doheny and daugherty, but every possible legal technicality was invoked by the defence so that two years after the trouble began neither prosecution had been brought to trial. president coolidge took rather a neutral attitude in these proceedings, which he considered to be outside the scope of the executive power. daugherty was succeeded as attorney-general by stone of new york; then stone was placed on the supreme court bench and sargent of vermont became attorney-general. politics and elections.—in the sonal elections of 1922 the republicans retained small working majorities in both house and senate. there was, however, a return of earlier conditions in the appearance of a small group of radical republicans, with rob- ert la follette of wisconsin as leader, who were able sometimes to hold the balance of power between the regular republicans and the democrats. in 1925 this group attempted to influence the nominations for the presidency. president coolidge’s year and a half in office seemed to justify the confidence of his party; and when the republican convention met in cleveland there was no rival candidate. on the first ballot the vote was coolidge 1,065, la follette 34 and hiram johnson 10. the vice-presidency offered difficulties. in the end the choice fell upon charles g. dawes, known to the american public through his association with the commission of 1923, which had devised the scheme for the payment of reparations by germany. the democratic conven- tion, held in new york, was the longest and fiercest in 60 years. the vote was divided between mcadoo, former secretary of the treasury, and “ al.” smith, a roman catholic, who had won a national reputation as governor of new york. the convention balloted 103 times; but neither candidate could secure the necessary two-thirds. the convention finally nom- inated john w. davis of west virginia, former ambassador to great britain, with charles bryan (brother of william j. bryan) as vice-presidential candidate. the campaign was quiet, and the result was that in the election (nov. 1924) coolidge re- ceived 15,725,016 votes, as against 8,386,503 for davis and 4,822,856 for la follettc, who gathered up many discontented republicans and the considerable vote usually cast for socialist and other minor candidates. la follette, however, had only the 13 electoral votes of his own state as against 136 for davis and 382 for coolidge. it was a substantial republican victory, ac- companied by a republican majority over all of 59 in the house and 16 in the senate. vice-president dawes on taking his seat in the senate for the first time (march 4 1925) seized the occasion to suggest that the procedure of that body needed reform; and that its first duty was to pass an efficient rule of closure. | the coolidge adminisiration.—throughout both his terms of presidential service coolidge addressed himself to a policy of economy. he stood by the budget bill which president harding had secured from an unwilling congress and continued the ap- pointment of gen. herbert m. lord as chicf budget officer. this reform meant simply that congress would not begin to act on the main appropriation bills until a budget based upon the ascer- tained needs of all the various departments had been drawn up, totalled and submitted by the budget officials. in 1913 the united states adopted an income tax, made possi- ble by the going into effect of the 17th amendment of the consti- tution. during the world war the tax was raised to high rates, intended in part to transfer some of the immense war profits to the public treasury. thenceforward that income was the largest factor in the national revenue, and was vigorously collected from individuals and corporations. the policy of the govt. was to break down the high scale of war expenditure, to dispense with super!luous employees and so to come back to the public needs in time of peace. several acts of congress, begun in 1921, reduced the rate of income tax. there was a running fight between those who wished to relieve the small taxpayer and those who thought it more important to bring down rates in the large amounts. the united states result was that the amount paid in income taxes which was $1,269,630,104 in 1919 came down to $703,062,165 in 1923 but rose to $1,761,650,049 in 1925. by the act of feb. 26 1926 the rates were still further lowered; and the provision in the statute of 1924, under which the amounts paid by individuals or corporations were open to the public, was repealed. the tariff was not a serious issue in this period. the under- wood tariff of 1913, passed by the democrats and somewhat al- tered in 1916 and 1921, was repealed by a republican majority after the inauguration of president harding; and an emergency act was passed (may 27 1921). it provided for penalty duties on foreign commodities that might be dumped on the united states. soon afterwards the republicans framed a new bill, the fordney-mccumber tariff, signed by president harding sept. 21 1922. it included a provision, never before a part of a united states statute, under which the president was to have power (in- formed by a tariff commission) to alter rates of duty if necessary to ‘‘ equalise the differences in cost of production in the united states over similar articles produced elsewhere.” the receipts from duties and imports, which were $326,000,000 in 1910 and $ 325,000,000 in 1920, rose to $545,000,000 in 1925. the public debt, which for many years previous to 1919 stood at about a thousand million dollars was $25,478,592,113 soon after the close of the war (aug. 31 1919); buton march 3r 1926 had been reduced to $19,736,292,774, partly by selling the surplus war material, and partly by payments made out of surplus. industry and commerce—uowever much the wealth of the country increased, it was not equally diffused; and large areas of the country were far from prosperous. the rural credits banks (see federal farm loan systfm), established under wilson, fur- nished needed capital, and the farmers from 1917 to 1919 had a guaranteed government price of $2.20 per bushel for wheat. when that protection was taken off after the war, a group of members of congress in both house and senate, commonly called the agricultural bloc, demanded special consideration for the agriculturists. their prices had tumbled, and agricultural land values, inflated during the war, fell back to or below antebellum prices. the cost of living and hiring farm labourers had been nearly doubled. considerable areas of farm land, even in fa- voured parts of the country, stood untilled because it cost more to cultivate the crops than they would realise. this discontent was reflected in the large popular vote for la follette in 1924. various propositions were made by farmers’ associations and sympathetic members of congress that the federal govt. perma- nently guarantce a price for the principal staples. the south was also affected by this movement because the inroads of the boll weevil for a time greatly reduced the output. in some degree the conditions of 1885-95 were reproduced; only it was no longer east against west, so much as the farmers of all sections against the group of manufacturers and distributors wherever established. organised capital in banking, in manufactures, and in trade, was rolling up in this period notwithstanding the sherman act, the mann elkins act and other measures against combinations. in spite of federal suits and supreme court decisions substan- tially upholding federal control, combinations and consolidations of capital went on steadily. the railways, which had been sus- tained during the war by the govt., were returned to their owners in 1920. for several years, notwithstanding a great increase in passenger and freight rates during the war, they were unable to make what they thought a fair profit. onder the esch- cummins act of 1920 they were allowed to retain a profit of 53° yo catnings, plus one-half of one per cent to make provision for improvements chargeable to capital accounts, all excess over 6% to be evenly divided with the government. meanwhile the administrative commissions which had been so powerful lost prestige. the tariff commission was weak and disregarded. the labour board was unable to enforce its decisions. the interstate commerce com- mission and the federal trade commission suffered in prestige and intluence from internal strains and quarrels. the special ship- ping commission, created during the war to build up a national merchant flect, was left with a large number of vessels for which profitable business could not be found. the supreme court de- united states cisions, under which great corporations like the standard oil co. and the american tobacco co. were regulated, left them more prosperous than ever. the hold of the great banks and the smaller banks and bankers on the finances of the country was unshaken. deposits in national and state chartered banking institutions in 1925 aggregated over 40 thousand million dollars. it took some years to restore to a normal basis the external commerce and shipping arrangement of the united states. the govt. received a large tonnage of german ships as part of an in- demnity, including the great liner ‘“ leviathan.” slowly the fleets, cargoes and passenger lists of the transatlantic lines re- turned to the frequency and swiftness of antebellum days. amer- icans in increased numbers found their way to europe and euro- pean visitors to america. this intercourse tended to an interna- tional appreciation of other countries. in 1926 the united states reached its highest point, up to that time, in production, wealth, internal commerce, manufacturing, transportation, banking and exchange, and international trade and finance. social questions —many phases of social life went through a similar exaggeration and transition. during the war the united states offered extraordinary wages in order to activate the pur- suits necessary to keep up the army. this led to a general raising of the scale of wages of skilled workers, some increase for the un- skilled and considerable increase in the earnings of domestic and agricultural labourers. the labour unions made it their busi- ness to see that no systematic reduction of wages should succeed. fuel was especially important: the whole anthracite supply comes from a small region in pennsylvania. in 1923 and again in 1925 came serious strikes of the miners’ unions. the last one endured 170 days, and was only settled with great difhiculty by a return to previous conditions. prohibition.—the most serious social question and most diff- cult governmental problem of this time was national prohibition (see prohibition). in 1918 more than 30 states had laws on their statute books for the restriction of the liquor traffic and 28 states prohibited it outright. during the war congress prohibited the sale of liquor to soldiers, and then to the general public. a prohi- bition (eighteenth) amendment to the federal constitution was easily put through congress, was ratified by a vote of 46 state legislatures out of 48, and became a part of the constitution jan. 16 1919. on oct. 28 rg19 the volstead act for enforcing the amendment was passed by congress over the veto of president wilson. it forbade the sale or transportation of “ intoxicating liquor ” which was defined as any liquor which contains one-half of one per cent of alcohol. to administer this act required a large force of officials distributed over the country. the amend- ment contained a clause under which the states were to have “concurrent jurisdiction,” which appears to mean that state laws might continue in force and be carried out by state courts at the same time with the federal system. from the very beginning there was an organised system of evasion of the laws through forged or excessive permits for the manufacture of ‘ denatured” alcohol, and alcohol for the arts. as late as 1924 about 80,000,000 gallons of whiskey, alcohol and denatured alcohol was thus re- leased by the government. a regular system of “ bootlegging,” illegal sale and transportation sprang up, it was informally countered by ‘ high-jackers ’’—that is bandits who seized boot- leggers’ supplies and carried them off by force, knowing that they were not likely to be followed by legal proceedings. an organised marine bootlegging trade placed a line of foreign sailing craft and steamers just outside the three-mile limit of the united states, whence they supplied the markcts of the adjoining coasts. the united states entered into treaties by which great britain and other nations agreed that vessels carrying their flags might be captured within that distance from the u.s. coast which can be traversed in one hour by the vessel suspected of endeavouring to commit an offense. this might possibly be as much as thirty nautical miles. within the united states large numbers of other- wise law-abiding persons bought and sold or gave away bootleg liquor, and the difficulties of executing the law are shown by the figures of national enforcement. in one fiscal vear (1924-5) 20,000,000 gal. of distilled and fermented liquors were seized; 879 77,000 persons were arrested; 50,000 criminal cases were entered against bootleggers; 35,000 pleas of guilty were entered and 38,000 convictions were obtained. a national law regulating the traffic in habit-forming drugs was enacted mav 26 1922. the chief unofficial agency for the enforcement of the law was the anti-saloon league, which made it its business to back up prosecutions and to keep the public informed. the law was de- nounced, and disregard of the law was defended by a consider- able number of men and women of repute and influence; but congress continued to make the necessary appropriations and to refuse all propositions to modify the enforcement of the law, with which the supreme court declined to interfere. national defence.—a remarkable phenomenon connected with the war was its effect upon the minds of those who served in the army and navy. the dangers, the hardships, the sufferings, the tortures of trench and hospital life were such that hardly any “ service man ” showed inclination to tell of his experiences or to encourage war. the armies were returned and disbanded as fast as possible; but a demand was made at once by soldiers and offi- cers for some immediate acknowledgment of their sufferings and services. the government attempted to head off this move- ment, first by an elaborate system of life insurance during the war with the privilege of continuing afterward, then by money. bonuses, passed by a number of the states. the federal govt. instituted an elaborate rehabilitation system for training wounded or otherwise injured men in some pursuit in which they could earn their own living. the govt. also provided hospitals and care for sick and disabled soldiers. provision was made for special privileges of alloting government land in favour of ex-- soldiers. on sept. 20 1922 a onus bill was defeated by president harding’s veto. on march 18 1924 a federal bonus was enacted by a large majority vote in congress, and president coolidge allowed it to become law. notwithstanding the experience of the united states in 1017, when it declared a war without any mobile army, strong pressure was put on congress to reduce the regular army. by an act of feb. 12 1925 the force of the regular army was set at 125,000 en- listed men and 7,953 enlisted men of the philippine scouts. a drive was directed against the system of training voung men in summer camps, so that they might be available as officers if needed somctime in the future. most of the veterans were interested in the amegican legion, the most widely distributed society of service men; and that body had considerable influence in the mat- ter of legislation for ex-soldiers. another serious controversy relating to defence came toa head in 1925 over the air service. the great dirigible “ shenandoah” was wrecked by a storm in sept. 1925, the commander, lans- downe, and thirteen men being killed. the wreck called public attention to the state of air defence. col. william mitchell, ignoring military law and custom, made a public attack upon the whole air service, insisting that it should no longer be divided between the army and navy departments, but should be a third separate branch of national defence. he was court-martialled, convicted, suspended for five years and allowed to resign and leave the service. international relations —the foreign affairs of the united states are always much affected by changes in party and in per- sonnel. president coolidge, accepting the resignation of charles ke. hughes from the department of state, appointed as his suc- cessor (feb. 1925) frank b. kellogg, previously a senator and ambassador to great britain. to the powerful chairman- ship of the committee on forcign relations, after the death of henry cabot lodge of massachusetts, who had been head of the opposition to the ratification of the league and covenant, suc- ceeded william fe. borah of idaho (dec. 1024), the famous free- jance of the senate. a great improvement in the conduct of foreign relations was introduced by the rogers act, which took effect july 1 1924, under which the consular and diplomatic ser- vices were merged and the policy of training young men with the prospect of life-long service was entered upon. the general policy of the united states towards other nations was much affected first of all by changes in international trade caused by the disruption of the world war; then by the refusal 880 of the senate in 1919 to approve the versailles treaty and fur- ther by a strong popular opposition to any formal relation with the league of nations. a treaty with germany (june 28 1919) formally restored peace, provided for commerce and arranged for an adjustment of claims. a similar treaty was made with austria under date of sept. ro 1919. turkey, on entering the war in 1914, declared that the capitulations were no longer in effect. the american administration nine years later accepted that policy in the american lausanne treaty dated july 24 1923. but a strong protest was made by friends of the armenians and others in america, and down to 1926 ratification by the senate had not been obtaincd. immigration.—an important question, partly social and partly international, was that of immigration, which went through a new phase because of the rush of people from other parts of the world as soon as the war conditions were cleared up. complaint was made that in the previous two decades the greater part of the immigrants came from southern and eastern europe, and was made up of persons who were not by tradition and inheritance of the same type as most of the previous immigrants. several changes were made in 1918 and at other dates so as to reduce the number of undesirables; and by the act of 1924, a permanent . quota system was enacted, based on 2° of the number of na- tionals of that country shown to be in the united states by the census of 1890. this made a total of about 165,000 permissible each year from all countries, besides about 150,000 transient visi- tors. unrestricted immigration from canada and mexico and some other sources brought the total immigration in 1924 and . 1925 up to about 300,000, out of which should be taken about 100,000 emigrants, leaving a total permanent addition of about 200,000 annually. reparations.—the united states was no party to the provi- sions of the versailles treaty providing for german reparations, particularly to france, and the payment of an indemnity by germany. however, an american force of occupation was ieft in the rhine belt, the costs of which amounted to about $200,000,- ooo and were to be paid by germany. in ro21 germany did not pay the stipulated sums to the allics and therefore the french occupied the ruhr valley. the united states suggested a com- mission, which, headed by charles g. dawes (later vice-presi- dent of the u. s.), succeeded in working out a scheme (1924) that was acceptable to france, great britain and belgium, for a method of payment secured by a lien on german railways and factories. financially the importance of the dawes plan to the united states was that it cleared the way for considerable in- vestments of private capital in german municipal and corporate securities. | general foreign relations—among the incidents of foreign relations since the war has been the recognition of various new countries created by the treaty of versailles: poland, latvia, lithuania, estonia, finland, czechoslovakia, yugoslavia, hun- gary and the enlarged rumania. in 1924 the united states re- ceived prof. timothy a. smiddy as minister from the irish free state. the british govt. consented to the appointment of a direct canadian representative at washington, and in 1924, adiplomatic agreement was made between the united states and canada as regards halibut fishing, for which, however, the united states insisted upon a formal approval by the british government. this was granted in due course. the last american troops were withdrawn from germany in 1923. meanwhile a joint commission on german claims was far advanced in its task. a troublesome difliculty was that a treaty with prussia, entered into in 1828 and assumed in 1871 by the german empire, entitled german citizens in case of war to nine months to dispose of their property in the united states and leave the country. instead, all discernible property of gcrmans, and particularly of german corporations, was seized at the begin- ning of the war and placed in the hands of a custodian of enemy property. a group of valuable german patents weze turned over, for a very small payment, to american manufacturing chemists. seven years after the end of the war the question of the legal ownership of those patents was still unsettled. united statis allies’ debts. —a very serious and difficult issue was that of the sums lent by the united states to foreign governments during the war, aggregating nine and a half thousand million dollars. with- out those enormous advances the allies would have broken down economically before an american army could have been placed in europe. nearly all the allied european countrics shared in these advances. for several years interest accumulated, until, at the end of 1922, the total principal was ten thousand million dol- jars and the accumulated interest one and a half thousand mij- lions more. this enormous sum was funded in united states govt. bonds placed at about four per cent interest, mostly in american hands, upon the same footing as other obligations of the government. the interest was paid by the u. s. treasury. in 1923 the first important adjustment of the debt was made by an agreement with england (feb, 28 1923). the whole amount of the principal and interest, then due was funded at $4,000,000,- ooo to be paid in annual instalments beginning with 23 millions a year and increasing, until in the sixty-second year the debt and accruing interest would be extinguished. similar settlements were made with finland and other small nations. the obliga- tions of armenia and russia were practically written off. negotiations followed with other countries and a settlement was made with italy (nov. 1925), ratified (april 1926), to pay $5,000,000 a year for five years, and thereafter rising payments for 57 years. the principal was reduced from a nominal value of two thousand million dollars to a present value at 5% of £430,- 000,000, the very low rate of interest on long-deferred pay- ments being thus equivalent to a reduction of about one-half the debt. in april 1926, following an unsuccessful visit of a french debt commission to the united states in sept. 1925, a settle- ment was finally arrived at with france. the total amount of the french indebtedness to be refunded, after a cash payment to adjust the sum to round figures, was de- clared to be $4,025,000,000, and the repayment of this amount with interest was spread over 62 years as in the other war debt settlements. the total sum to be received by the united states under this agreement amounted to $6,847,674,104, being an in- crease of approximately $627,000,0c00 over the previous french offer made by m. caillaux, and there was no “safeguard ” clause as had been previously demanded. comparing the french settlement with those of great britain and italy, the figures worked out as follows: great britain’s agreement discounted represented slightly over 80% of her total obligation, france’s approximately 50% and that of italy 26%. the house of representatives voted approval june 2, but ratification by the senate was deferred pending the action of the french legislature. the various agreements made to the end of april 1926 left only $295,000,000 unfunded war debts to the united states, including $193,000,000 owing by russia. in nearly all cases the period of payment is so long and the interest so low that the settlements involve payment at the value of from one-quarter to over three-quarters of the original advances by the united states. latin america.—with latin america the united states in the main enjoyed peaceful relations. the long-standing question over the isle of pines was adjusted by a treaty (march 13 1925), under which the title of cuba was acknowledged. at the request of chile and peru president harding agreed in 1922 to arbitrate the obstinate dispute over the ownership of the tacna-arica re- gion. after harding’s death president coolidge took up the task and rendered his decision (march 4 1925) to the effect that the delayed plebiscite of the inhabitants should now be taken; and general pershing was made the head of a commission to preside over this process. chile objected, and towards the end of 1925 it seemed doubtful whether or not the award would be carried out. (see tacna-arica.) with mexico relations became strained by a dispute over the application of the new mexican constitution of 3917 under which aliens were forbidden to hold lands or conces- sions. mexicans claimed that this was in accord with the prac- tice of several states in the united states. in 1925 secretary kel- logg protested against the attitude of mexico as unfriendly and declared that the govt. of mexico was on trial before the world. united states in march 1926 a financial understanding was reached. the united states was also concerned in the outbreak of anti-foreign feeling in china and her representatives took part in a confer- ence at peking in oct. 1925 upon questions relating to the with- drawal of the foreign limitation on the laying of tariffs by the chinese government. (see cina.) the league of naitons.—after the refusal of the united states to ratify the treaty of versailles or to take part in the league of nations, no official relations with the league were established. however, large numbers of american citizens were interested in the work of the league and some of them were appointed to ad- visory committees in which, however, they did not represent the american government. eventually the united states consented to appoint official delegates or “‘ observers ”? to commissions on the opium trafhe and other matters, instituted by the league and operating in its headquarters in geneva. the united states became a party to treaties with regard to the white slave trade and other matters, drawn up by the league, but to take effect for only such countries as might ratify them. gradually even the warm friends of the league accepted the conviction that it was useless for the time to urge participation in the league by the united states. the world court—down to 1914 the international court at the hague, founded in 1899 and strengthened in 1907, was in being and rendered occasional decisions. it was, however, en- tirely ignored by the contending parties in the six large wars that broke out from 1900 to 1914 and after the war it remained inef- fective. elihu root, who had a share in framing the court, came forward in 1920 as the leader of an unofficial group of experts in international affairs, to propose a new world court with wide powers and jurisdiction. an advisory committee of jurists sat at the hague and drew up a plan for a permanent court of inter- national justice. the league of nations modified the project but established the court (dec. 1920) and chose the judges (sept. 1921). (see permanent courrt of international justice.) the united states had no official relation with the court; but the force of american public sentiment for a world league concentrated on a proposition for qualified entrance of the united states into the world court. this was warmly urged by president harding and later by president coolidge. senator borah, senator hiram johnson of california and others strongly opposed. the progress of the movement was checked by a proposal, originally drawn by a group headed by professor j.t. shotwell of columbia university and the carnegie endowment, who desired to enlarge the juris- diction of the world court and give it a compulsory character. the league of nations modified this proposal into the so-called geneva protocol, which was unanimously approved by the assem- bly of the league of nations (sept. 1924), and sent for ratifi- cations by the nations of the world. strong opposition was made in the united states on the plea that the court was to decide whether a controversy was justiciable, and could assert jurisdic- tion over all nations and also arbitrate regarding nations, even if not members of the league of nations. great britain declined to accept the compulsory jurisdiction and the whole plan fell to the ground. this set-back left the statute constituting the world court intact, and great pressure was exerted upon the u.s. senate to take part in the world court; it was urged by president coolidge and secretary kellogg. on jan. 27 1926 the senate, by a major- ity of 76 to 17, voted the adhesion of the united states to the court, with several important reservations: the united states should not be bound by advisory opinions or be subject to any obligatory jurisdiction; should participate in the election of the judges; might withdraw at its will; and no case involving the united states was to be submitted without its consent. if all the 50 or more nations that are members of the league of nations as- sent to these conditions, the united states becomes so far forth a participant in a world tribunal for the settlement of interna- tional disputes and difficulties, while at the same time stead- fastly disavowing any ofhcial connection with or responsibility to the league of nations. 881 the 6oth congress.—the first session of the 69th congress adjourned july 3 1926, its most important measures being the passage of secretary mellon’s revenue bill which is estimated to have lightened the tax burden by $350,000,000, and the action of the senate in voting the adhesion of the united states to the world court with reservations. at the date of adjourn- ment a senate committee was investigating the expenses of candidates in recent primary contests for the senate. brsliography.—e, channing, a. b. hart and f. j. turner, guide to american history (rev. ed., 1912); milton conover, working manual of original sources in american government (1924); g. m. dutcher, selected bibliography— world war (1918); h. h. b. meyer, check list on european war (1918); p. t. moon, syllabus on inter- national relations (1925). narrative hisrortes.—b. p. de witt, progressive movement (1915); f. a. ogg, national progress (1907-71917) (1918); carl russell fish, development of american nationality (1783-1019) (rev. ed., 1919); allen johnson (ed.) chronicles of america (50 vol., 1920); c. r. lingley, since the civil war (1920); f. l. paxson, recent iistory of the u.s, (1921); charles a. beard, contemporary american history (new. ed., 1921); a. w. dunn, from harrison to itarding (1922); j. f. rhodes, afckinley and roosevelt administra- tions (1897-1979) (1922); a. m. schlesinger, new view points in american [history (1922); p. l. haworth, united states in our own times (1865-1924) (1924); lester b. shippee, recent american his- ee ‘alae r, g. adams, history of the foreign policy of the u.s. 1924). compendiums and periodicals.—polttical science review (quar- terly, 1906, etc.). new international year book (annual, 1907-cetc.); american vear book, a record of events and progress (london and n. y., annual, 1910, etc.); w. m. malloy (ed.), treaties, conventions, international acts ... between u.s. and other powers (with supl., 1913- ); a. c. mclaughlin, and a. b. hart, cyclopedia of ameri- can government (3 vol., 1914); committee on public information, (u.s.), war informution series (1917-8); j. n. larned, and others (eds.), new larned iistory of ready reference, reading and research (12 vol., 1922-4); encyclopaedia britannica co., these eventfut years (1924); current history published monthly by the new york times, 1914-26). autoriographical.—tom l. johnson, my story (1911); theo- dore roosevelt, theodore roosevelt: autobiography (1913); robert m. la follette, autobiography (1913); j. b. foraker, notes of a busy life (1916); j. j. jusserand, with americans (1916); hl. morgenthau, ambassador morgenthau’s story (1918); henry watter- son, marse henry, an autobiography (1919); champ clark, my quarter century of american politics (tg20); henry ford (in colla- boration with s. crowther), my life and work (1922); william d. foulke, a hoosier autobiography (1922); franklin k. lane, letters personal and political (1922); oscar s. straus, under four admints- trations: from cleveland te taft (1922); h. h. kohtsaat, from mc- kinley to harding (1923); c. r. flint, memories of an active life geen: l. f. abbott, (ed.) letters of archie butt (1924); william e. borah, american problems (1924); w. c. redfield, with congress ° and cabinet (1924); samuel gompers, seventy years of life and labor (1925). works of pustic men.—w. h. taft, presidential addresses and state papers, 1909-1910 (1910); woodrow wilson, the new freedom (1913); calvin coolidge, have faith in massachusetts (1919); warren g. harding, rededicating america (1920); elihu root, men and policies (1924); woodrow wilson, messages and papers (1913-23) (ed. by albert shaw, 1924). brographies.—herbert croly, afarcus alonzo hanna (1912); william draper lewis, life of theodore roosevelt (1919); j. b. bishop, theodore roosevelt (1920); w. e. dodd, woodrow wilson (1920); w. r. thayer, theedore roosevelt (2nd ed. 1921); joseph p. tumulty, woodrow wilson (1921); b. j. hendrick, life and letters of waiter hi. page (2 vol., 1922-4); w. f. johnson, life of warren . harding, etc. (1923); wayne c. williams, william jennings bryan (1923); david lawrence, true story of woodrow wilson (1924); e. e. whiting, president coolidge (1924). political.—f. a. cleveland and j. shafer, democracy in recon- struction (1919); e. d. graper, and others, oueline and bibliography on party government, etc. (1924); a. n. holcombe, political parties of today (1924); e. kimball, united states govt. (1924); c. a. beard, american govt. and polttics, (4th rev. ed., n.y., 1924); j. m. beck, constitution of the u.s., (rev. ed., 1924); r. l. ashley, the constitu- tion to-day (1924); r. c. gettell, constitution of the u.s. (1924); j. a. woodburn, american politics (1924); wilbur c. abbott, 7he new barbarians (1925); w. b. munro, government of u.s., national, state and local (rev. ed., 1925). united states in tie world war.—theodore roosevelt, a mer- ica and the world war (1915); e. m. smith, american diplomacy in the european war (political science quarterly, dec. 1916); h. h. b. meyer, the u.s. at war; organizations and literature (1917); . e. robinson, and v. j. west, foreign policy of woodrow wilson (1917); f. fe. simonds, /zistory of the world war (5 vol., 1917-20); james w. gerard, face to face with kaiserism (1918); s. b. hard- 882 ing, study of the great war (1918); a. b. hart, america ai war (1918); j.s. bassett, our wer with germany (1919); brand whitlock, belgium: a personal narrative (1919); f. w. halsey, (ecdl.) literary digest [tistory of the world war (10 vol.,1g19-20); j. b. mcmaster, u.s. in the world war (congress library) (1920); johann ei. von bernstorif, j1fy three fears in america (1920); robert lansing, peace negotiations (1921); c. seymour, woodrow wilson and the hees war (1921); chares g. dawes, journal of the great war 1923}. international. —a merican journal of international law (quar- terly, 1911, etc.); -\\. b. wart, afonroe doctrine (1916); c. l. jones, caribbern interests of the u.s. (1916); h. h. powers, america among ihe nations (1917); w. e. weyl, american world policies (1917); j. 11. lataie, from isolation to leadership (1918); c. l. jones, lfexico and its reconstruction (1921); p. b. potter, afyth of american isolation (world peace foundation, 1921); r. l. buell, washington conference (1922); carl kelsey, american intervention in [fatt: and the dominican republic (1922); c. r. fish, american diplomacy (4th ed., 1923); h. a gibbons, america’s place in the world (1924); j. b. moore, internutional law and some current tilusions (1924); amer. academy of polit. social science: america and the post-\\var, european situation (1924). territorial and immigration.—h. p. fairchild, jnmmigratian, a world movement (1913); c. b. elliott, the philippines(1916-7); luther k. zabriskie, virgin islands of the u.s.a. (1918); m. m. kalaw, self-government in the philippines (1919); f. b. harrison, cornerstone of philippine independence (1922); w. j. lauck, and j. w. jenks, lnumigraiion problem (1922); b. i. hibbard, jzistery of the public land policies (1924); r. whitney, reds in america (1924); d. r. williams, u.s. and the philippines (1924). [xdustrial.—c. r. van hise, conservation of nutural resources (1910); j. g. pyle, life of james j. hill (1917); rinehart john swenson, national government and business (1924); w. m. mcclure, the new american commercial policy (1924); academy of polit. science, american iecon. policies since the armistice (the academy, 1924); commerce year book (new york, supt. of doc.); c. day, ttistory of the commerce of the u.s. (1925); n. b. allen, united states, (rev. ed., 1925). (a. b. fe.) il. national finance and wealth the puslic finances the dominating feature in federal public finance since 1910 has been the financing of american participation in the world war with the subsequent readjustments necessary for returning to peace conditions. although several significant alterations and innovations in the fiscal system had their origin in the pre-war period, 1910-6, it was the necessity for war expansion or for post-war contraction that made most of these changes impor- _ tant. for example, income taxation had its beginnings in the tariff acts of 1909 and 1913, but it was due primarily to war experience that it rose to its present pre-eminent position in the revenue system. similarly, the federal reserve system had begun operation in 1914, but the use of the federal reserve banks as fiscal agents of the government was a war deveclop- ment. and it was the need for retrenchment after the war that brought about the adoption of the executive budget, a measure which had been steadilyadvocated by successive administrations since 1910 or thereabouts. public debt.—although taxation was used to an unprece- cented extent in financing the participation of the united states in the world war, it was necessary to borrow the greater portion of the required revenues. four classes of interest-bearing obli- gations were authorised and issued: (1) treasury certificates of indebtedness, with maturities not exceeding one year; (2) treas- ury notes, with maturities from one to five years; (3) bonds, with maturities exceeding five years; and (4) war savings cer- tificates, with maturities not exceeding five years. all were issued at not less than par except war savings certificates, on which interest was discounted in advance. issue first liberty loan, 33 per cent, june 15 1917 second liberty loan, 4 per cent, november 15 1917 third liberty loan, 4} per cent, may 9 1918 ; fourth liberty loan, 4} per cent, october 24, 1918 victory liberty loan, 3{-47 per cent, may 20 1919 total united states the treasury was placed in funds through the issue of short term treasury certificates of indebtedness, and from time to time ouistanding certificates were funded into loans, discharged irom tax receipts or replaced by new issues. five war loans were issued during the war and post-armistice periods. the war loan organisation, directed from the treasury and centred at the federal reserve banks, with associated liberty loan committecs formed in every part of the country, conducted the selling campaigns. the results are shown in table below. the peak of the war debt was reached on aug. 31 1919, when the gross amount outstanding stood at $26,594,267,878. con- gress, in the victory liberty loan act (march 3 1919), provided for definite and systematic discharge of the permanent debt through provision for the cumulative sinking fund, effective on july « 1920, and through reaffirmation of directions to apply to domestic debt reduction any repayments of loans to foreign governments. the federal budget is balanced annually on such basis. there remained the problem of the temporary or short- dated debt. many of the maturities came at inconvenient times and in inconvenient amounts. in order to render this short- dated debt more manageable and to arrange maturities on dates and in amounts that could be discharged without undue strain the treasury entered on a refunding programme. it resorted {o issues of treasury notes in moderate amounts from time to time, with maturities not exceeding tive years. the first issue was made on june 15 1t921. other issues followed. on oct. 16 1922, the programme was varied and a series of treasury bonds was issued with further issues of bonds on dec. 15 1924, march 15 1925 and march 15 1926. each year since the war the volume of maturities has been considerably larger than the amount that could be retired, so that refunding operations have been con- tinuously necessary and will continue to be necessary in the future. the maturities of all refunding issues are arranged for tax payment dates, and with respect to the bonds provision was made for call before maturity. thirteen refunding issues aggre- gating $6,553,6903,300 have been made to march 31 1926. included in the short-dated debt to be discharged or refunded were the outstanding victory notes. approximately $1,200,000,- ooo were retired through purchase for the sinking fund and other accounts, approximately $1,500,000,000 were exchanged for other issues, and approximately $1,800,000,000 were paid on call date or at maturity. on march 31 1926 the outstanding debt was as follows:— interest-bearing debt— bonds: pre-war issues liberty loans . post-war issues treasury notes : : certificates of indebtedness ‘ treasury savings certificates 765,860,170.00 13,946,307 ,500.00 2,305,933,900.00 1,612,403,600.00 821,002,000.00 362,218,809.60 total interest-bearing debt outstanding $19,813,725,979.60 20,678,670.26 248,365,358-49 $20,082,770,008.35 matured debt on which interest has ceased outstanding debt bearing no interest total gross debt net debt, after adjustments for matured interest obligations, balance held by treasurer of the united states, etc. . $19,736,292,774.63 $5,369,257,859 of the interest-bearing debt matures within 5 years (before april 1 1931). taxation.—there were three notable features in the history of federal taxation in the period 1910-26. the first was the : | number of amount amount allotted : cee subscribed and issued paiaireek $3,035,226,850 | $1,989,455,550 4,000,000 4,617,532,300 3,807 865,000 9,400,000 4,176,516,850 4,175,650,050 18,308,325 6,992,927,100 6,964,581,100 22,777,680 5,249,908, 300 4,495,373,000 11,803,895 $21,432,924,700 $24,072, 111,400 united states adoption of an income tax with progressive rates and its rapid growth to a position of pre-cminence in the revenue system. the second was the unprecedented expansion of taxation during the war, which made it possible to pay nearly one-third of the war costs, inciuding loans to the allics, from current revenues. the third feature was the post-war reduction in taxation, made possible by an aggressive campaign for economy in public expen- ditures and by the adoption of an executive budget. until ror3 practically all the federal revenue had been de- rived from customs and internal exctse duties on alcoholic bever- ages and tobacco. in rg10, customs duties were furnishing 50°% of the total ordinary receipts of the fedcral govt., while 40°, came from internal taxes on tobacco and alcoholic beverages. the ratification of the 16th amendment in 1913 permitted the fed- eral govt. to “ lay and collect taxes on incomes from whatever source derived,” a privilege that was immediately made use of by a provision in the tariff act of oct. 3 1913. with the war came an expansion in all taxes, but the new income tax supplied the major portion of the increased revenues. by 1925, after two reductions had taken place in the maximum rates, income and profits taxes still yielded almost as much as all other sources of ordinary revenue combined, while customs duties provided only about one-seventh, and tobacco taxes less than one-tenth, of the total ordinary receipts. the following table shows the growth in importance of the income tax from 1910 to 1925. relative importance of principal federal taxes 1910-25 (in millions of dollars) income and spirits and liquors total ordinary fiscal year tobacco ending customs (2) receipts (in percentages of ordinary receipts) 3:1 49-4 8-6 30°9 ii'5 30°] 1r-5 32:1 59°0 4°38 4-4 2°1 48-8 15:2 9°6 0:7 (1) on warrant basis. (2) on basis of reports of collections. lating to manufacture and sale. includes special taxes re- (3) from a 1% “ excise tax '’ on corporation incomes. adopted 1909. source: annual report of the secretary of the treasury, 1925, pp. 485, 497. under the stimulation of war necessity, not only were former taxes increased to maximum rates, but a multitude of new and temporary taxes came into being. in each successive revenue act from r914 to 1918, both of these tendencics were illustrated. the climax came in the revenue act of 1918, approved feb. 24 1919, which constituted the high water mark for tax levies in american history. under this law, rates on personal incomes earned in 1918 began with 6% on the smallest incomes and rose to 77% (65° surtax) on net incomes of over $1,000,000. for years subsequent to 1918, a small reduction in the normal tax was provided, which reduced the rate ee to the highest incomes to 73%. corporations were taxed 12% on their net incomes, 1% on their capital stock, and, under a combined war- -profits and excess-profits tax, an additional amount up to 80% of the profits in exccss of certain credits (based on 8% of invested capital and the rate of pre-war carnings). estates of decedents were made taxable at rates reaching a maximum of 25%. -excise and occupation taxes were increased from the alrcady high rates of 1917, and many new levies were made on transactions and articles of consumption. this law was in effect until 1921, when the new republican administration upon coming into ofhce began an aggressive campaign to decrease expenditures in order to permit a reduction in the high taxes. the success of this economy programme was greatly enhanced by the establishment in 1921 of an executive 88 3 budget system, which permitted, for the first time, the formula- tion of a comprchensive fiscal programme by the administration. in spite of the increased cost of government and continued war liabilities for the public debt, disabled veterans and unliquidated war-time agencics, it was found possible to reduce taxes to some extent immediately. accordingly, the revenue act of 1921 repealed the exccss-profits tax on corporations (although the corporation income tax was increased as a partial offset), and the maximum rate on individual incomes was reduced from 73% (65° surtax) to 58° (so% surtax). several of the more apppalar: excise taxes were also repealed, such as, for example, duties on transportation, soda-fountain products, toilet and medicinal preparations and articles of clothing. by 1924 the reduction in expenditures had made considerable progress, resulting in a surplus of about $500,000,000 in ordinary receipts over expenditures chargeable against ordinary receipts. congress found it possible, therefore, to make more extensive tax reductions in the revenue act of 1924. the maximum rate on personal incomes was reduced from 58° to 46% (40% yo sur- tax), while the smallest taxable incomes paid only 2%. num- crous excise duties, including taxes on telegraph and telephone messages, manufacturers’ sales, drafts and checks, and admis- slons, were repealed in whole or in part. in 1926 a thoroughgoing tax revision was undertaken in an attempt to devise a more scientific system. it was felt that some of the taxes, especially the excessive surtaxes, had a depressing effect upon industry, and, furthermore, were fiscally unneces- sary. accordingly, the maximum rate on individual incomes was fixed at 25°% (20° surtax), while corresponding reductions were made in the lower brackets. several taxes, including the gift tax and capital-stock tax, were repealed altogether, and reductions were made in many of the excises. tariff.—two thorough revisions of the tariff have taken place since 1910. in 1913, the new democratic administration sup- planted the “ cost of production ”’ duties of the 1909 law with schedules designed to secure “ effective competition ” between american and foreign producers. there was a reduction in rates on many manufactured products, notably textiles, and the free list was extended to include some important raw materials and foodstuffs, as well as a few manufactures. a tariff commission was created to make rescarches into comparative costs of pro- duction, upon which future tariff rates could be based. with the return of the republican party to power in 1921, an emergency act was immediately provided to be effective until. a comprehensive tariff revision could be undertaken. there was a general increase in rates, and duties were imposed on many articles which had been on the free list. the new tariff act of 1922, as finally framed, reinforced and extended this upward revision of rates. a “ flexible” provision was included which gave the president power to increase or decrease rates by not more than 50% °> of the statutory amount, as occasion demanded, but this priv ilege has been rarcly used. loans to foreign governments.—the total principal amount of obligations of foreign governments originally held by the treas- ury was $10,338,058,352.20. such obligations were acquired by the united states (1) under the authority of the liberty bond acts which authorised the secretary of the treasury, with the approval of the president, to establish credits in favour of foreign governments engaged in war with enemies of the united states against cash advances made for the purpose, in general, of enabling those governments to meet commitments made in the united states in connection with the prosecution of the war; (2) under the authority of the act of july 9 1918, which authorized the president, through the head of any executive department, to sell any surplus war supplies on such terms as the head of such department deemed expedient; (3) under the authority of the act of feb. 25 1919, appropriating $100,000,000 as a revolv- ing fund for the participation by the united states, in the dis- cretion of the president, in the furnishing of foodstuffs and other urgent supplies to certain populations in europe and countries contiguous thereto; and (4) under the authority of the act of march 30 1920, which authorized the u.s. grain corporation, 884 with the approval of the secretary of the treasury, to sell or dispose of the flour in its possession, not to exceed 5,000,000 bbl. at such prices and on such terms or conditions as might be necessary to relieve populations in the countries of europe or countries contiguous thereto, suffering for the want of food. the table below (taken from the annual report of the secretary of the treasury, for the fiscal year 1925) shows by countries the total principal amount of such obligations received by the united states and payments on account of principal thereof. united states federal reserve banks to act as fiscal agents of the united states and as depositaries of public moneys. they have been utilised in both capacities, and since the discontinuance of the independ- ent treasury system on july 1 1921 they have been the principal agents for the administration of receipts and expenditures, the depositary system, the public debt and paper currency changes. other agencies.—during the war period and subsequently the operations of many governmental agencies created by con- gress had more or less connection with and influence on national total total principal amount of obligations $9,598,236,575.45 total principal amount of obligations received country =a for surplus supplies litceivgd under | sold on creat y under act of july 9 1918 armenia austria oe ie belgium $349,214,467.89 $29,872,732.54 cuba. : 10,000,000.00 a czechoslovakia 61,974,041.10 20,604,302.49 estonia de 12,213,377-88 finland - as france... 2,997,477,800.00 407,341,145.01 great britain 4,277,000,000.00 ee greece . 15,000,000.00 hungary | of italy 1,648,034,050.90 ale latvia . - 2,521,869.32 liberia 26,000.00 + lithuania of 4,159,491.96 nicaragua 166,604.14 poland . - | 83,682,708.66 rumania 25,000,000.00 12,922,675.42 russia . 187,729,750.00 406,082.30 yugoslavia . 26,780,465.56 24,978,020.99 $598,869,010.71 total principal amount of obligations received for relief supplies furnished on credit under acts of feb. 25 1919, and march 30 $11,959,917.49 24,055,708.92 9,301,327.44 1,785,767.72 8,281,926.17 1 685,835.61 2,610,417.82 822, 136.07 75,984,263.73 4,465,465.07 $140,952,766.04 payments on account of principal of obligations so received $ 2,057,630.37 10,000,000.00 64, 302,901.29 202,181,641.56 164,852.94 82,513.86 1,794,180.48 720,600.16 $281, 304,320.66 total net principal amount of obligations received y treasury pursuant to acts mentioned rr rrr rm a a ye = fc rf $ 11,959,917.49 24,055,708.92 377 ,029,570.06 91 879,671.03 13,999,145.60 8,281,926.17 35340,516,043.72 4,074,818, 358.44 15,000,000.00 1,685,835.61 1,647,869,197.96 5,132,287.14 26,000.00 4,981 628.03 84,090.28 159,666,972.39 36,128,494.94 192,601,297 .37 51,037,886.39 rr rr rr a rr $10,056,754,031.54 debt-funding agreements executed pursuant to the authority of the act of feb. 9 1922, as amended, providing for the funding of $9,811,094,094.03, principal amount of obligations of foreign governments held by the treasury, have been concluded with the govts. of belgium, czechoslovakia, estonia, finland, france, great britain, hungary, italy, latvia, lithuania, poland, rumania and yugoslavia. below is a statement showing by countries the principal amount of obligations funded and the amount of accrued interest thereon included in the principal of the debt as funded :— country date of agreement belgium aug, 18 1925 czechoslovakia oct. 13 1925 estonia . oct. 28 1925 finland may 1 1923 france . : apr. 29 1926 great britain june 19 1923 hungary apr. 25 1924 italy. nov. i4 1925 latvia sept. 24 1925 lithuania sept. 22 1924 poland . nov. 14 1924 rumania dec. 4 1925 yugoslavia may 3 1926 total principal of obligations funded $377,029,570.06 91,879,671.03 1 12,066,222.15 8,281,926.17 3,340,516,043.72 4,074,818,358.44 i,685,835.61 1,647,869,197.96 5,132,287.14 4,981 ,628.03 159,666,972.39 36,128,494.94 §1,037, 886.39 $9,811 ,094,094.03 accrued interest funded $40,750,429.94 23,120,328.97 1,763,777-85 718,073.83 684,483,956.28 525,181,641.56 253,164.39 394,130,802.04 642,712.86 1,048,371.97 18,893,027.61 8,461 ,505.06 11,812,113.61 $1,711,259,905.97 funded bonds received or to be received $417,780,000.00 115,000,000,00 i 3,830,000.00 9,000,000,00 4,025,000,000.00 4,600,000,000.00 1,939,000.00 2,042,000,000.00 5:77 5,000.00 6,030,000,00 178,560,000.00 44,590,000.00 62,850,000.00 $11,522,354,000.00 ' credit of $1,932,923.45 allowed for loss of cargo on ship sunk by mine deducted. the budget—the budget and accounting act of june 10 1921, directed the president to submit annually to congress a budget prepared by a bureau of the budget whose duties were to be performed directly under the president. by this means it is possible for the president to exercise a much more effective control than formerly over the estimates of appropriations sub- mitted by the executive departments and officers. the first budget was submitted in 1021, for the fiscal year ending june 30 1923. by that same law, the government accounting system was removed from the treasury and an independent general accounting office was established under the comptroller-gen- eral of the united states. the federal reserve banks as fiscal agents—the organisa- tion of the federal reserve system has made a fundamental change with respect to the conduct of the fiscal business of the government. the secretary of the treasury may require the finance. mention may be made of the federal control of railways and the post-war assistance given the carriers under the trans- portation act of feb. 28 1920 and of the several war emergency corporations, the capital stocks of which were subscribed for by the treasury and served as revolving funds, such as the emer- gency fleet corp., the u.s. housing corp., the u.s. sugar equalisation board, the u.s. spruce products corp., the war finance corp. and the u.s. grain corporation. ‘the united states subscribed to the capita! stock of the federal land banks, now repaid for the most part, furnished the capital for the inter- mediate credit banks, and purchased federal farm loan bonds when their public sale was inopportune. in 1910 a postal sav- ings system was established that has received deposits aggre- gating $1,295,753,079, while withdrawals have amounted to $1,163,580,768. deposits bear interest at 2°4 and may be con- verted into 23% u.s. bonds. united states table i. below sets forth the receipts and expenditures of the adherence to the gold standard has been one of the important factors contributing to the stability of the american financial structure. during the war actual payments in gold, though discouraged, were never suspended, and in 1922 the unrestricted payment of gold in the ordinary course of business was rein- augurated. also shown for each year. table i. receipts and expenditures of the united states government by fiscal years from rorr to 1925} on basis of warrants issued. internal revenue fiscal year customs income and miscellancous profits taxes iqii 314,497,071 33,516,077 289,012,224 1912 311,321,672 28,583.304 203,028 896 1913 318,891,396 35,006,300 309,410,606 1914 292,320,014 71,381,275 308,659,733 iqi§ 200,786,672 80,201,759 335,467,887 1916 213,185,846 124,937,253 387,704,776 1917 225,962,303 359,681,228 449,684,980 1918 182,758,989 2,838,909,894 857,043,591 19qi9 183,428,625 2,600,762,735 1,239,468,260 1920 323,535,559 3,956,036,004 1,442,213,241 1q2i 308,025,102 3,228,137,674 1,351,835.935 1922 357,544,713 2,086,918, 465 i,121,239,843 1923 §62,189,039 1,691,089,535 935,609,504 1924 545,012,115 1,841,759,317 952,530,768 548,521,795 1,761,659,049 827,786,838 ordinary receipts 2 a sales of public lands §.731,637 §.392,797 2,910,265 2,571,775 2,167,136 1,887,662 1,892,893 1,999,455 1,404,705 1,910,140 1,539,439 895,391 636,508 522,223 623.534 885 u.s. govt. ona warrant basis during the period july 1 1910 to june 30 1925 by fiscal years, classified as to ordinary receipts and expenditures, and public debt receipts and expenditures. the surplus or deficit of ordinary receipts and of total receipts are surplus postal receipts covered into miscellaneous receipts the treasury total ordinary receipts surplus (+-) or deficit (—) ordinary receipts com- pared with expenditures chargeable against ordi- $3 800,000 3,500,300 5.200,000 9,557,701 18,000,000 300,000 81,494 59,075,002 54,282,535 57,892,663 55,940,370 66,787,373 54,759,011 $1,903,301 290,005,526 611,316,574 979,518,493 694,987,895 536,916,625 657,411,007 §4.4,216,7 19g 499,052,048 701,832,011 692,609,204 724,111,230 734,673,107 697,910,827 782,534.548 1,124,.324,795 4,180,425,156 4,654,380,809 6,704,414.437 5,584,517,045 4,103,5906,531 3,847,045,683 3,884,041, 142 3,607,044.104 nary receipts ? —sse rt man | pre fe | heh heres tn -+ 10,631,399 -+ 2,727,870 — 408,264 —62,675,.975 -+ 40,537,821 — 961,717,309 —9,611,482,739 — 14,207,700, 281 | 362:660.107 693,241,726? 485,558,734 199,397,834 479,740,075 -{676,037 184 1 this statement does not include postal revenues and expenditures, except surplus postal revenues covered into the treasury and postal deficiencies paid out of the general fund of the treasury. ; : * beginning with 1921, figures represent surplus or deficit after taking into account public debt expenditures chargeable against ordinary receipts. war depart- expenditures chargeable against ordinary receipts en fiscal : civil and mis-| ment (includ- navy ‘ year an avy cellaneous? |e ee ae department | /\"dians panama canal)! ioii. 173,838,599 | 197,199,491 119,937,044 | 20,933,860 i9l2.. 172,256,794 184,122,793 135,591,956 | 20,134,840 i9i3. . 169,802,304 202,128,711 133,262,862 | 20,306,150 1914. 170,530,235 | 208,349,746 | 130,682,186 | 20,215,076 1915. 200,533,231 202,160,134] 141,835,654 | 22,130,351 1916, 199,555,048 182,139,305 155,029,426 17,570,284 1917. | 1,153,677.300 | 459,539,678 | 257,166,437 | 30,508,004 1918 . | 6,306,354.905 | 5,705,136,249 | 1,368,642,794 30,888,400 i9iq . | 6,805,124,746 | 9,265,325,159 | 2,000,272,389 } 34,503,257 1920) = ._:| « 3,133,500,982 | 1,100,865,666 620,893,116 | 40,516,832 i92i. . | 1,811,016,060 580,704,891 647,870,645 41,470,808 1922. 989,922,678 402,058,450] 458,794,813 | 38,500,413 1923. | 1,169,528,360 |] 355,722,856] 322,532,000 | 45,142,763 1924 . | 1,047,2690,519 | 348,606,247 | 324,129,908 | 46,754,026 1925. 617,537,364 | 357,957,420 | 326,365,467 | 38,755,457 pensions & 157,980,575 153,590,456 175,085,450 173,440,231 164,387,942 159,302,351 160,318,406 181,137,754 221,614,781 273,344,204 260,611,416 252,576,848 264,147,869 228,261,555 218,321,424 postal de- ficiencies 7 interest on the public debt total ordi- nary expen- ditures retirements chargeable against ordi- nary receipts® public debt | total expendi- tures charge- able against ordinary receipts 1,568,195 1,027,309 6,636,503 5,500,000 2,221,005 343,511 130,272,845 64,349,235 32,526,015 12,638,850 23.216,784 21,311,334 22,616,300 22,890,108 22,863,957 22,902,897 22,900,313 24,742,129 197,526,008 615,867,337 t,024,024,440 996,670,804 989,485,410 1,055,088,486 038,740,772 882,014,950 601,201,512 689,881,334 724,511,963 735,081,431 760,586,802 741.9090,727 2,086,042,104 13.791.907,895 18,952,141,180 6,141,745,240 4.408, 713,400| $422,561,850 3.105,684,847 422,352,950 3.244,690,158] 402,957,691 2,916,400,967 457,894,100 2,494,168,866] 466,538,114 691,201,512 689,881,334 724,511,963 735,081,431 700,586,802 741,996,727 2,086,0.42,104 13,791,007 ,805 18,952,141,180 6,t.40,.745,240 4,8901,275,319 3,618,037.797 3,647,647,849 3,404,205,067 2,9030,706,980 ? includes civil expenditures under war and navy departments at washington to and including fiscal year 1920. 4 exclusive of civil expenditures under war department at washington to and including fiscal year 1920. § exclusive of civil expenditures under navy department at washington to and including fiscal ycat ig20. 6 includes only army and navy pensions for service prior to world war, and fees of examining surgeons. does not include salaries under bureau of pensions or pay- ments to the veterans of the world war, the expenditures for which are made by the veterans’ bureau and included in the figures covering ‘* civil and miscellaneous.” 7 exclusive of the following amounts transferred to the civil service retirement and disability fund (interior department) on account of salary deductions of 2 under the act of may 22 1920: 1921, $6,519,683.59; 1922, $7,809,006.28; 1923, $8,300,779.81; 1924, $8,679,658.60; 1925, $10,266,977.47. sat par. ened! fiscal | public debt debt retire- : : year retirements, | redemption miontact public debt deposits to exclusive of of national ; ‘ + § chatge-| receipts, pro- | retire national retirements bank and able against | ceeds of bonds|bank and fed- chargeable federal re- public debt and other cral reserve . . am receipts and oar rere against ordi- serve bank 7 securitics bank-notes nary receipts notes surplus rev- enue toil 246,496| 34,976,840 35,223,336 17,641,634, 40,232,555 i9i2 120,616 28,527,712 28,648,328 32,817,646, 20,078,365 1913 102,575 24,089,036 24,191,611 1,929,840 21,471,010 1914 109,127 26,852,200 26,961,327 3,118,940 19,902,283 i9i5 47,533] 17,205,958 17,253,491 033,540) 213,553,415 1916 35.9003 24,633,011 24,668,914 1,803,500 56,648,063 1917 636,980,607] 40,564,116 677,544.783| 2,390.724,755| 37,293,045 1918 7 685,267,850 21,611,225 7,706,879,075| 16,964,609,560 10,279,650 org | 15,813,848,117f 23,717,803 | 15,837,566,010) 29,053.331.758] 22,644,758 1920 17,01 3,020,107 23,424,105 |17,036,444,272| 1§.835.273,962 17,071.088 1qo2i 8.721,751.533 37,400,631 8,759,212,164| 8,824.738,839 40,186,945 1922 6,500,584,6043] 107,251,870 6,607,836,.513| 5,.910,931,276] 107,086,627 1923 7,486,747,500| 74,414,564 | 7,561,162,070] 7,259.180.8990] 90,547.57 1924 2,814,718,038| 33,084.377 | 2,847,802.415| 2,178.675,627| 28,453.557 1925 3.351,798,909| 68.974,302 | 3.420,773,3011 3,047,015,791) 105.447.372 public debt expenditures chargeable - against pubhc debt receipts and surplus revenue ! total public public debt receipts total public debt receipts 57,874,189 52,896,011 23,400,850 23,021,223 22,486,055 58,452,403 2,428,017,800 16,907.4,889,210 29,075,976,516 1§,852,345.950 8,864,025,784 6,018 017,903 7.349,728,470 2,.207,120,184 3.1§2,463,163 surplus(-+)or deficit (—) public debt receipts com- pared with public debt expenditures (exclusive of public debt expenditures chargeable against ordi- nary receipts) lee 24,247,683 — 790,761 — 3,940,104 +5,233.464 +33.783.489 1.750,473,017 9,268 010,135 +13,238,410,506 —1,184,008.322 --105.713.620 —580,818,610 —211,433.600 ~640,673.231 — 268,310.138 recapitulation of total receipts and ex- total ordinary and public debt receipts 759,707,100 745,505,215 747,512,080 757,604,390 720,397,782 840,986,951 3,-552,342,595 21,155.314,366 33,.739.357.415 22,556,760,387 14.449.442,829 10,321,614,434 11,196,774,153 6,001,170,320 6,760,107,327 penditures total ordinary and public debt expendi- tures 720,424,848 718,520,062 748,703,574 762,042,758 777,849,293 766,665,641 2,703,586,887 21,498,786,970 34.789. 707,190 23,178,189,512 13.650,487,483 10,225.874,310 t1,208,809,9t9 6,252,007,482 6,351,480, 281 surplus (+) or deficit (—) of all receipts -+ 33.282,252 -20,975,553 — 1,191,494 — 4,348,368 — 57,442,511 +74.321,310 +788.755,708 —343.472,604 —1,059.349.775 — 621,429,125 +798,955,346 —104,259.876 —12,035,766 — 160,927,156 +408 627,046 note 1. for public debt expenditures chargeable against ordinary receipts, sec preceding section of this table. 886 united states table ii.is a statement of ordinary reccipts, and expenditures against such receipts, together with the surplus or deficit, stated on a current cash basis, by fiscal years from 1917 to 1926. table iii summarizes by fiscal years the history of the public debt since 1917. table ii. ordinary receipts, and expenditures chargeable against such receipts, together with the surplus or deficit, on a current cash basis, by fiscal years from 1977 to 1926. (in thousands of dollars —ooo's omitted) expenditures chargeable expenditures chargeable geet ee against ordinary reccipts oe pane fiscal pes against priests receipts po eadius year | receipts | ordinary | “debt_| total |_—deficit | year | receipts | ordinary | ‘pest | total | deficit 1917 |$1,124,325|$ 1,977,688]$ $ 1,977,682; —$ 853.357 || 1922 [$4,109,104] $3.372,608/$422,695 | $3,795,302| +$313,802 _ 1918 | 3,664,583] 12,696,702) 1,134 | 12,697,837) —9,033,258 || 1923 | 4,007,135) 3,294,626} 402,250 | 3,697,478] +309,657 i9ig | 5,152,257] 18,514,880 8,015 | 18,522,895} —13,370,638 1924 | 4,012,045} 3,048,678] 458,000 3,506,678) +505,367 1920 | 6,694,565} 6,403,344] 78,746 | 6,482,090) +212,475 |} 1925 | 3,780,149] 3,063,105] 466,538 3,529,643} +250,505 1921 | 5,624,933] 5,115,928] 422,282 | 5,538,209] + 86,72. 1926 | 3,962,756] 3,097,612] 487,376 3,584,988 +377,768 table iii. transactions in the public debt of the united states government from july 1 1916 to june 30 1925 (in thousands of dollars —ooo0’s omitted} fiseal year ended june 30 1920 yiscal year | ended june 30 1921 fiscal year ended june 30 l9r9 fiscal year fiscal year ended ended june 30 i9r7| june 30 ror8 fiscal year ended june 39 1922 fiscal vear fiscal year fiscal year ended ended ended june 30 1923 june 30 1924 | june 30 192 detail cl total cross debt outstand- ing (from = previous year) $1,225,146 $2,975,619 | $12,243.629 | $25,482,034 | $24,297,018 | $23.076,250 | $22,064,070 | $22,340,688 | $21,251,120 poe issues: re-war issues. f 52,151 20,171 289 189 179 il2 : 102 certificates of indebted- . oe ae nese. : , . 918,205 9,007,648 16,955.328 14,728,726 8,486,065 3,905,090 4,292,259 2,014,802 1,924,579 first liberty loan. 1,466,335 523,112 8 ace nee fa ik es second liberty loan . d3 3.807,854 7 2 third liberty loan 3,243,045 932.104 sor bs fourth liberty loan . ea 6,959,595 5,071 5 a victory liberty loan. 3,497,845 1,027,527 2 11 bg i treasury notes 2% 311,192 1,935,405 2,000,938 210 59,000 treasury bonds . : sist 763.0602 1,047,089 treasury (war) sav- ings securities . ; 352,769 738,248 73.240 25,418 70,325 201.991 143,540 23.249 retirements ; : 37,293 10,280 22,645 17,072 40,187 107,086 90,548 28,454 105,147 total issues . | | | ——————————————————————————————————. —>7. [c+ | _ _, public debt redemptions: national bank notes, i pre-war issues. e 50,373 7.381 82,245 44r 152 37 245 44 117,075 certificates of indebted- : ess. wwe 632,572 7,578,272 15,045,533 15,588,704 8,552,217 4,775,874 5,096,403 2,235,167 2,157,554 first liberty loan aan 656 4,003- 32.338 200 ats 80 2.40 5 second liberty loan si 61,050 180.357 241,150 8.770 5.939 iit,360 94.4350 aa third liberty loan 14,935 201,060 20f:,338 §1,156 137,77 66,001 410,587 111,823 fourth liberty loan . we 165,000 405,222 39,199 9.177 16,818 4,070 14, victory liberty loan . si 249,007 332,587 1,907,986 1,911,442 80,610 6,042 treasury notes : ae aes va oe 143.340 356,073 1,373.392 treasury bonds . ; 8 6 i treasury {war) savings | securities . ; — 2,972 134,048 199,819 159,732 85.416 5.413.808 87,435 50,861 miscellaneous 40,566 21,613 23,720 23,425 42,303 107,253 74.416 33,085 69,017 total redemption $723,511 £7,706,879 $15,837,506 $17,036,444 $0.186,616 $7,030,189 $7,964,121 £3,305,607 $3,887,314 gross debt outstanding: interest-bearing debt. . 2,712,550 11,985,882 25,234..496 24,0%1,005 23.9737.352 22,701,035 22,007,590 20,981,585 20,210,906 matured debt on which interest has ceased . 14,232 20,243 ti,110 6,748 19,939 25,251 08,172 30,241 30,243 debt bearing no interest (less gold reserve) 248,837 237,50 236,420 230,075 227,958 227,793 243.925 239,293 275,123 perky gross debt 2,975,619 12,243,620 235,482,035 24,207,918 23,976,219 22,964,079 22,349,687 21,251,120 20,516,272 deduct: * net balance (adjusted) | held by treasurer uiess: « g . . 1,066,084 1,319,348 1,002,733 32.071? 162,703 32,3377 193,.80f 43,075 | 77,038 | net debt . 1,908,635 10,924,281 24,479,302 24,330,889 23,813,546 22,096,416 22,155,886 21,178,045 20,439,234 | net debt increased . 902,353 9,015,646 13.555,021 net debt decreased 148.413 517,342 87.131 840,530 977.842 738,811 1 adjustment—deduct. | 2 adjustment—add. estimated national wealth of the united states total (in dollars) per capita in state and local finance the two most prominent features are (1) the remarkable growth of expenditures and debts after the war, due primarily to the demand for increased educational facilities and highway improvements; (2) the widespread move- ee fortes coos ser ment for budgetary reform in the states. the latter, although oc — -186,300,000.000 1950 strongly pressed has not, as yet completely passed beyond the 1922 320,804,000,000 ! 2935 experimental stage. | | based on the statistical abstract of the united states, ig24, p. 271. bibliograpily.—annual reports of the secretary of the treasury on the state of the finances; message of the president of the united states transmitting the budget (annual, 1924-7); the bureau of the census, wealth, debt and taxation, 1913, 1922; financial stattstics of states (annual); financial statistics of cities having a population of over 30,000 (annual); the national tax association, proceedings (annual). cx we mm\") the table shows the increase in terms of dollars. the decline in the purchasing power of the dollar since 1900 accounts, in part at least, for the upward trend, and is a reflection of the cheapen- ing of gold. since this is a world-wide phenomenon it does not destroy the usefulness of these figures for purposes of comparison with other countries. all such comparisons are based on esti- mates which are generally not made by the same persons, and cannot, therefore, be taken as mathematically exact. the follow- ing table shows how the leading countries compare in total and per capita wealth at approximately the same dates. wealtil and income increase of wealth—the increase in the total and per capita wealth in the united states since 1900 is shown by the table in the adjoining column.— united states the details of the estimate are as follows:— national wealth, 1922 a ea er cas es ee ee total | eine (in thou- +r re amount | items of wealth sands beet bao of muil- capita lions of dollars) real property and improvements | taxed tj. $155-9 48-6 ba27 real property and improvements exempt : ; : ; 5 20°5 6-4 137 live stock . 5:8 1-8 53 farm implements and machinery . 2-6 0-8 24 manufacturing machinery, tools and implements ' 15°8 4-9 145 railroads and their equipment 20:0 6-2 183 motor vehicles . = “2 4:6 i-4 $2 street railways 4:9 1-5 45 telegraph systems -2 ol 2 telephone systems 1-7 0-5 15 pullman and other cars not owned by railroads 5 o-2 5 pipe lines 5 0-2 5 shipping and canals . ; ; 3-0 0:9 27 privately owned waterworks . “4 o-l 4 privately owned central electric light and power stations 4-2 1-3 38 agricultural products © 5:5 1-7 50 manufactured products 28-4 8-9 260 imported merchandise 1°5 0-5 et mining products : 7 0-2 6 clothing, personal adornments, fur- niture, horse-drawn vehicles and kindred property . 39°8 12-4 364 gold and silver coin and bullion 4°3 i-4 39 total -o (in ‘ 1913\" dollars—ooo,oo0g omitted) pre-war wealth post-war wealth a) ss} 5 a ss) ae ) es am 1d pews —_ nations bue 8 s ba 2 ‘bs 6 s aa ies 4 sts) aos = : ee gen betivies 2 ~ nts ° a sa s ee = 0.912 ae € ms, a. os x cir, | ae a < ) . <q s oo ; << ss * great britain . 46 70,000 | 1,522 47 70,000 | 1,489 france. ; 40 57,900 | 1,447 39 57,900 | 1,485 united states g8 | 200,000 | 2,062 | i10 | 230,000 | 2, germany 68 80,500 | 1,184 61 55,000 figures taken from the inter-ally debts by harvey e. fr isk, bankers trust co., new york, 1924. increase of income.—the significance of these figures is less than that of the estimates of the national and per capita income. it is the annual income of the people rather than the value of the property which they own that sets their standard of living and their material well-being. the following table shows the estimated national and per capita incomes in various countries in 1914. national estimates based income vee capita country upon the work of | millions dollies of dollars eee united states national bureau of economic research $33,200 $335 united kingdom bowley, stamp 10,950 243 germany : helfferich 10,460 146 france pupin 7,300 185 italy : 3,890 ii2 austria-hungary ; es 5,350 102 spain barthe 1,120 54 australia official, knibbs 1,260 263 canada giffen 1,460 195 japan stamp 1,580 29 taken from income in the united states vol. i, by the staff of fe national bureau of economic research, inc., harcourt, brace & co., 1921. 887 diffusion of wealth—even more significant than the total or the per capita income of the various countries is the question of the <iffusion of income. a high average income may go with widespread poverty if the few have immense incomes and the many very small incomes. it is important to know how evenly or unevenly the income is distributed or how widely actual personal incomes deviate from the average. this is a question that pre- sents many difficultics to the statistician. income-tax statistics throw some fight on the question, wage statistics further fight. the table at top of p. 888, based on income-tax returns, shows the number of incomes of different classes in the united states, 1916-22. the difficulty of reducing this table to a graph is insurmount- able. however, the following tells a part of the story. in order to show incomes of a million or over on this scale, the curve would have to start several inches above the top of the page. at the same time the percentage of such incomes is so small, jess than 0.002%, that it could not be shown on a graph without a micro- meter and a magnifying glass. such a curve, however, would show the distribution of taxable incomes of $20,000 or less. s. n. procopovitch in an able article in the economic journal for march 1926, makes some interesting comparisons of the de- grees of inequality of incomes in different countries. comparing the united states and australia with germany, he finds that the incomes of the wealthiest 0.5% of the population deviate less from the average in the two english-speaking countries than in germany; during the world war, instead of increasing, as was the case in germany, they declined. he also finds that of the incomes coming last in the table (his table covers only the wealth- lest 20° of the population) 4 to 20°) in the united states and australia are definitely higher, onthe average, than in germany. the following table noe his estimate of the inequalities of income of the richest 40% of the population in prussia, saxony, united states of america wand australia. the richest 10%, linge respectively incomes 5-6, 5-7, 5-5 and 5-8 times as large as the average income or budget unit. the incomes of the other 60% of the population, which would presumably fall below the budget unit, or the average, are not indicated. percentage of prussia saxony u.s.a. | australia population 1913 1912 1918 iqi 4-5 0-10 % 5-6 57 55 5:8 10-20 i-9 i'9 2:3 24 20-30% =. : is i°3 1-7 i-4 30-40% 0-9 it in the following table, he shows, in another form, the degrees of inequality in the united states, australia and saxony :— coefficient of inequality income per head of population 557 dollars 241 dollars 157 dollars united states australia saxony 0°53 0-64 0:70 for the distribution of incomes below the income-tax level we have no statistics. however, some idea of the general ciffusion of prosperity among wage-workers may be gained from wage statistics. the following table shows, in the a of index num- bers, based on the cost of food alone, comparative wages in a number of cilics. philadelphia, the only american city stands first. base: london, july 1 1924=100 oct. i “4 oct. i . city 1925 city 1925 amsterdam . : 8i paris . e , ia berlin : : 5 65 philadelphia ; i 176 brussels. : 51 prague. : : 49 copenhagen 109g riga . ; . : 45 lisbon : 34 rome - lodz . ; 54 stockholm 82 london. . 04 sydney 133 madrid. : 56 dt alin (revel) : 39 milan : : 44 vienna s.. : 43 oslo. ; . : 89 warsaw. ; 47 ottawa from international labour review (league of nations), jan. 1926. 888 united states personal income tax returns 1916 to 1922 income class (net income) 1916 | i9i7 | no, of returns . | 437,036 3,472,890 under $1,000 | $1,000- $2,000 i 640, 758 2,000- 3,000. 838,707 3,000- 5,000 157,149 560,763 §,000- 10,000 150,553 370,666 10,000- 25,000 80,880 112,502 25,000- 50,000 23,734 30,391 50,000- 100,000 10,452 12,439 100,000- 150,000 ; : 4 2,900 3,302 ¥50,000- 300,000 ; - 2,437 2,347 300,000-— 500,000 . ‘ — 714 559 500,000—1 ,000,000 : - | a7. 315 1,000,000 and over . 14] (from statistical abstract of the united states, 1924, 162.) the tendency of wages in the united states is shown by the following table :— index of union wage rates for all reporting trades (including build- ing, metal, aie and publishin i cost of living index compared with (1913, — 100) (1913 —100) se a ier ve index of wages cost of 17 ar : li real wages per week iving derived from full time index columns i and 2 1910 95 3% | i 195 102 105-1 97-1 1920 189 200°4 90-6 | 1924 214 172°5 125-4 statistical abstract (1924), p. 317, for index of ‘‘ rate per weck full time.” survey of current business, feb. 1926, p. 30 for bureau of labour statistics index of cost of living. inde of real wages computed. the statistics of savings deposits and the assets of building and loan associations and of insurance companies. (especially indus- trial insurance) are instructive. savings deposits in all banks and trust companies (about june 30) | amount date (in thousand dollars) 1913 8,820,192 1920 14,672,17 1923 19,567,953 1924 20,844,508 1925 23,134,052 statistical er p. “350: 1925 fieiires sanplied by american bankers association, building and loan a assets (in thou- sand dollars) 945,569 1,484,206 date associations members | | | 2,216,912 3,334,899 1920 8,624 5,026,781 2,534,320 | 1924 11,844 8,554,352 4,765,937 (by ti. f. cellarius, cincinnati, sec. of u.s, league of loca! building and loan associations. ) 9:937 i9io 6,806 1915 if we add together the premiums paid to life-insurance com- panies during the last five years and count them among recent savings, and then add to this sum the savings deposits and the assets of building and loan associations, we get an aggregate of about 35 billions of dollars in these popular forms of saving. ee en _ z 402,076 1,516,938 1,924,872 2,671,950 2,440,544 2,471,181 1,496,878 1,569,741 2,569,316 2,222,031 2,129,898 932,236 1,180,488 1,337,116 1,072,146 i,190,1i5 319,356 438,851 455,442 353,247 391,373 116,569 162,485 171,830 132,344 151,329 28,542 37,477 38,548 28,946 35,478 9,996 13,320 12,093 8717 12,000 2,35 2,983 2,19! 1,367 2,171 1,514 1,564 1,063 739 1,323 382 425 239 162 309 178 189 12 63 161 67... 65 21 67 a ee cera nce eee ee the last few years have witnessed a striking increase in the number of small investments in corporate securities. mr. h. t. warshow (quarterly journal of economics, nov. 1924) has shown that the number of stockholders increased from about 4,400,000 in 1900 to about 14,400,000 in 1922, or about 250%. he shows further that an increasing percentage of all dividends paid by corporations goes to persons of smal] or moderate in- _thousand muted cape las) iw > 1s) nm so [www see ls jeendenf tt =cam fic. 1.—diagram showing the estimated national income in various countries, in 1914. (based on figures given intable p, 887.) comes, and a correspondingly decreasing proportion to persons with large incomes. since 1916 especially, decreasing propor- tions of total dividends have been paid to persons with incomes of $20,000 or above, constant proportions to those with incomes from $5,000 to $20,000 and increasing proportions to those with incomes under $5,000. several years ago the number of labourers buying the shares of corporations began to be noticeable. in many cases this was mercly a response to a selling campaign on the part of corporate managers, a campaign which was strikingly successful, and the employees surprised their employers by the avidity with which life insurance (outstanding policies) ordinary industrial group total ordinary industrial group total 1910 6,964 23,034 29,998 $13,227,213 | $ 3,177,048 $16,404,261 1915 . 9,590 33,142 43,032 18,349,225 4,434,906 22,784,191 1920 e 16,695 49,805 66,499 35,091,538 7,189,852 ads 42,281,390 1924 22,082 68,248 90,368 9,241,424 | 11,343,740 3,194,576 | 63,779,740 (statistical aia p. 284.) number of policies (thousand policies) value of outstanding policies (in thousand dollars) united states they purchased the shares offered. in fact, some old and well- established industries have found that they need not go outside the circle of their own employees to raise any new capital needed for ordinary expansion. in at least one case, that of a large rapid- transit company, the employees own enough voting stock to hold the balance of power. in 1924 the financial world, by means of a questionnaire, found that in the cases of 104 of the leading corporations of the country, employees below the grade of officials owned stock. of those only 54 had offered special inducements to persuade em- ployees to buy stock. in ore case 50,020 employees owned dollars id & bo ow inno - kw ki aia rt] kg {| — we ny tri ted states australia n united kingdom france germany fic. 2,—diagram showing the estimated income per head of pop- ulation, in various countries in 1914. (based on table p, 887.) 689,703 shares. in two other cases, 15,000 employces owned stock; 450,411 shares in one case and 200,000 shares in the other. still another company reported that 12,000 of its 18,000 employ- ecs owned stock. other sources of information show that corpo- rations not included in those that replied to the questionnaire of the financtal world have sold considerable quantities of stock to their own employees. in aug. 1921, the metropolitan life insurance co, published a report on employees thrift and sav- ings plans which contains much valuable information. in one large motor company, 94% of the employees were buying stock on the instalment plan. the following summary gives an analysis of the general in- crease in the number of shareholders of the leading american corporations between 1918 and 1925. source of increase in stockholders —1925 over 1918 from general public 203,216 7,827 211,043 tages from _ from employees | customers railways express and pullmar 45,003 2,996 47,999 70,262 total rail and allied services| 70,262 street railways. gas, electric light and power companies . ; telephone and telegraph packers ten oil companies five iron and steel companies ten high-grade miscellaneous manufacturing and dis- tributing companies . total 15,000 260,000 75,000 62,649 7,000 21,153 87,696 470,324 201,922 28,000 115,724 4,530 815,955 800 19,337 1,310,880 | ore | es ee (ee eee 338,760 864.754 864.754 | 1 proceedings of rere of political science, vol. 11, no. 3, p.34. 889 the growth of labour banks from nothing to their present di- mensions has been a phenomenon of the last five years. the statement of financial condition of labour banks in the united states, dec. 31 1925, gives the names of 36 labour banks and in- vestment companies. the total capital of these banks on the above date was $9,064,358; surplus and undivided profits, $3,403,429; and total resources, $114,894,305.3 productivity—tvhe great natural resources of the united states help to explain the general prosperity of the country, but not the diffusion of that prosperity. the explanation is rather to be found in the way in which the human resources have been de- veloped and utilised. prof. taussig (quarterly journal of econo- mics, nov. 1924) has collected some significant evidence as to the product per worker in different countries in certain manu- facturing and mining industries where comparison is possible. it appears that the product per worker is higher in the united states than in other countries. this higher product per worker in man- ufacturing industries cannot be shown to depend upon superior manufacturing sites. it is correlated with a larger quantity of en- gine-power and of power-driven machinery per worker. in the stecl industry, for example, the total number of workers is very little greater in the united states than in great britain, though the total product in tonnage is more than twice as great. in other words, the product per man is about twice as great in the united states. the american industry uses almost exactly twice as much horse-power per man as the british. according to sir richard redmayne the output of coal per worker (underground and above ground) in 1923 was as follows: united states, 693 tons; great britain, 229 tons; germany (excluding brown coal) 103 tons and france 134 tons (see coat). the output per labourer is four times as great in the united states as in japan. also “a japanese cotton-mill requires ap- proximately four times as many employees for the same amount of machinery as does an american mill.” figures 3 and 4, which will be seen on the following page, show how the product and the power per worker have increased in iron and copper mining in the united states. in agriculture, a comparison between iowa and bavaria was made, some years ago, by e. a. goldenweiser. it appeared that in most crops except indian corn, which is not a bavarian crop, bavaria produced more per acre, but iowa produced nearly four times as much per person engaged in agriculture. the reasons for american pros perity.—the conclusion is war- ranted that the higher wages per worker are a market expression of the fact that the product per worker is higher in the united states than elsewhere, and that the higher product, at least in manufacturing, and to a certain extent also in mining, is a result of superior equipment and direction. why does the united states equip and direct its wage-workers more efliciently than other countries? first among the factors in prosperity of the american people and its wide diffusion must be mentioned the democratic spirit or the absence of the spirit of caste. american democracy is not limited to the form of government: it is a spirit which per- meates everywhere and determines the popular attitude toward men and careers. it recognises no basis for esteem except indi- vidual achievement. it presents an open road to talent wherever it exists, whether in the newly arrived immigrant, the child of a ditch digger, or the homes of the educated and the wealthy. the road from log cabin to white house is as open as that from the palatial home. that the son of a labourer may fill the highest position in any field is so much a matter of course as to occasion no surprise or comment. this means, first of all, the fullest development of human re- sources. when a person who is capable of doing work of great importance is found doing work of jess importance because of social handicap, that person’s full productivity is not realised. when he is encouraged and enabled to do the most important work of which he is physically and mentally capable, he makes a greater contribution to the national life than he could have made 1 courtesy of research department, amalgamated clothing workers of america. 890 under any other condition. when one who would otherwise have been an unskilled workman becomes a skilled workman, his pro- ductivity is increased. the same principle applies to every in- crease in skill or talent, however high in the social or economic scale the case is found. when such cascs of increased productivi- ty are numbered by the tens of millions, they count largely in the creation of national prosperity. ar. ° o fe) gross tons per ye o i9i9 oo 1860 1870 1880 1889 1902 1909- year. fic. 3.—diagram showing the yearly output of iron per worker employed at iron mines in the united states, and the horsepower used per man. the broken line should be read in connection with the vertical scale on the right, and the output per man, in conncc- tion with the vertical scale on the left. another factor of vast importance is that the country has no leisure class and that it is not the ambition of any typical amcr- ican to retire from business as soon as he has accumulated a competency. where the idea prevails, as to some extent it does in great britain, that the successful man should retire from business as soon as he can afford it, there will always be a scarcity of active talent of the highest grade. the more cap- able the man, the sooner he will be able to retire. the result would be that industrics would be managed by young and untried men, or else by third- and fourth-rate men who never could ac- cumulate enough on which to retire. industry would be poorly managed, the product per man would be low, and by no possibility could high wages be paid. next in importance to the democratic spirit with its open road to talent—in fact a part of it—is the american system of popular and universal education. until recently this had its fullest de- velopment in the northern and western states, where prosperity has becn greatest and to which immigrants have preferred to come because in these states industry expanded most rapidly, the demand for labour was greatest and wages were highest. these results came, not because of superior natural resources in the north and west, but because there the available human resources were more fully developed and utilised than was the case in the southern states. the question of prohibition is still a controversial question. whatever may be said for or against it on other grounds, there cannot be much doubt that it is a factor in the diffusion of pros- perity. in spite of the vast amount of bootlegging, the fact is that wage-workers are spending much less of their money on drink, because bootleg liquor is too expensive. much of the wage- money formerly spent on drink is now spent on other articles; much of it also is saved and helps to explain the growing financial power of labour. more important is the effect of increasing so- briety among wage-workers on wage-rates. first, it increases the efficiency of labour. second, it facilitates the promotions of the more capable into higher ranks, thus relieving the congestion in united states the lower ranks of labour. anything which relieves that conges- tion tends to raise wages. the restriction of immigration, inefficiently as it is adminis- tered, and in spite of the many who are smuggled in, is a vital factor in the present prosperity of the american wage-workers. ii, however, the united states had not been a good country for labourers, there would have been no immigration to restrict. it became a good country for labourers at an early day because of 30,000 25,000 we 20,000 = x = qo = 5 e m [5,000 t g od c o 3 < & 10,000 9 5,000 o i902 1909 1918 1919 0 1860 1870 1880 1889 year. fig. 4.—diagram showing the yearly output of copper per worker employed at copper mines in the united states and the horscpower used. broken lines should be read in connection with the ver- tical scale on the right, and the output per man, in connection with the vertical scale on the left. the gifts of free land and has become a still better country for jabourers since the free land was exhausted, because of the fac- tors mentioned above, which caused american industries to expand, which increased their product per man and enabled industries to pay higher wages than elsewhere. the restriction of immigration merely safeguarded the results which had been thus secured. the principles of economics are, of course, universal. no coun- try has a monopoly of any of them. the factors and forces that have made the united states prosperous and have diffused that prosperity will produce the same results wherever they are per- mitted to operate. any country, up to the limit set by its physi- cal resources, can prosper by the same methods and diffuse its prosperity to the same degree. the whole process may be sum- marised in a single formula: the fullest development of human resources by training every individual to the highest degree of skill and usefulness. this will not only increase the national dividend; it will, through the occupational redistribution of la- bour-power, increase those kinds of skill and talent that are now scarce, and correspondingly decrease those forms of labour that are now superabundant. a consistent pursuit of this policy will diffuse prosperity and abolish unemployment, low wages and pov- erty in any country, although not perhaps as completely as in the united states, where the conditions are so favorable to a rapid increase of wealth. bibliography. —statistics of income, annually published by the bureau of internal revenue, analyses in detail the federal income returns. of especial value for recent years are the annual reports and monthly bulletins of the federal reserve board, and the monthly bulletins issued by the several district banks. ‘the annual volume, statistical abstract of the united states, assembles data on money, banking and national wealth. the alnnual report of the secretary of the treasury contains a mass of information regarding the national wealth. see also w. i. king, the wealth and income of the people of the united states (1917), a scholarly analysis and inter- pretation of official statistics, and the publications of the national bureau of economic research (new york). ces aha) united states iii. production, industry and trade the land.—during the decade rgto—20 the number of farms showed a slight gain, 1-4%. in 1920 there were 6,448,343, as compared with 6,361,502 in 1910. a comparison of these num- bers with the total population shows that in rg1o there was one farm for every 14 of the population, and in 1920 one farm for every 16. according to the preliminary figures of the agricul- tural censusin 1925, there was a decrease of 75,735 furms, or 12%, between 1920 and 1925. between 1910 and 1920 the percentage of increase in population was 14-9, and for improved farm land 5-1. the numberof acres per ca pita of total population in improved farm land in 1910 was §-203; and in 1020, 4-76. the percentage of farm land improved for the total area of the united states in iqio was 54:43 and in 1920, 52-6. the decrease in the number of farms was particularly marked in states east of the mississippi; for example, in connecticut, 15-5%; massachusetts, 13-4°; new york, 10-5 %; ohio, 5-6 °%; and illinois, 5-89. in new eng- land the number of farms decreased by 32,238, giving in 1920 one farm for every 47 persons. the total farm acreage increased somewhat more rapidly than the number of farms, jrom 878- 798,325 ac. to 985,883,715 ac., nearly 8-8%. the greater por- tion of this increase was due to the use of land for dry farming in the arid states of the rocky mountain section and also to the enclosure of large areas for grazing. in ro1o there were 503,- 000,000 ac. under cultivation. one-half of the total land area of the united states was in 1920 included in farms, as compared with 46-2% in 1910. of the 956,000,000 ac. included in farms, 105,012,000 in 1924 was devoted to corn; 54,209,000 to wheat; 76,385,000 to hay; 42,452,000 to oats; and 40,115,000 to cotton. nearly one-third of the farm area and nearly one-sixth of the total land area is used for the growing of these five products. the average size of farms slightly increased between 1910~20, from 138-1 ac. to 148-2 acres. notwithstanding the small in- crease in the number of farms, and of acreage in farms, the value of all farms, lands and buildings increased from $35,000,000,000 in lq10, to $66,000,000,000 in 1920 or nearly 99%. this increase, however, was due largely to the abnormally high prices prevail- ing in 1920, rather than to new investments and improvement of property. for the same reason the average value of land and buildings per farm for the united states as a whole greatly in- creased, rising from $5,471, in 1910 to $10,284 in 1920. in rgro 62:1°% of farms were owned by their cultivators, and in ro920 60:9°%. in new england, new jersey, new york and pennsvi- vania, there was a decline in tenancy, but there was a marked increase in the mountain and pacific states. during the decade 1910-20 native white farmers increased from 4,721,063 to 4,917,- 386; foreign-born white farmers decreased from 669,556 to 581,- 068; coloured farmers increased from 920,883 to 949,880. the united states is an agricultural country, but the ques- tion is frequently asked whether agriculture is keeping pace with the growth of the population. a comparison of the annual crop for the three-year period rgr2—4 with that for the period 1922-4 for corn, wheat and oats gives the following:— table i. corn, wheat and oat crops average igl2-4 average 1922-4 bushels bushels millions millions corn. < - 2,748 2,799 wheat . 795 846 oats 1,227 1,355 a comparison of these figures with the population at the respec- tive dates shows that the per cupita product was slightly less for all three in 1920 than in 1910. table ii. shows the estimated annual crop of some of the most important agricultural staples. the annual production of cotton from 1910-9, which did not greatly change in this decade, averaged 13,200,000 bales. in 1916 a record crop of 16,000,000 bales was reached. the five years 1920-4, however, showed a decline to an annual average of less than 11,000,000 bales. domestic consumption slowly in- creased until 1924, leaving a smaller amount for export, and from 1910-4 the annual average export was 8,811,000 bales, table if. annual crops (in millions) corn (bu.) and from 1915-9, 6,310,000 bales, or a decline of 28°5. in the five years 1920-4 the average export was 6,138,000 bales, a fur- ther decline of 3°%. the production of wool also remained fairly constant, approximately 300,000,000 lb. annually. imports in the years 1915-24 were larger than in the preceding cdlecade, and the total consumption therefore larger, as exports were insignifi- cant. the average annual consumption, domestic and foreign, 1921-4 was 590,000,000 lb., as compared with 508,000,000 ib. in rgr1r-s. with the exception of two years, 1g20 and 1924, the united states since 1914 has been dependent on foreign countries for more than one-half its wool consumption, as compared with two-fifths or even one-third in the earlier years of the century. strenuous efforts were made during the world war period, even before the entry of the united states, to increase the produc- tion of wheat. in 1916 the average farm value per bushel for the first time since the decade following the civil war was above $1, and in 1919 was as high as $2.15. a record crop was pro- duced in 1915 amounting to over a thousand million bushels. the average annual production for the five years 1910-4 was 697,000,000 bu., 1915-9, 822,000,000 and in 1920-4, 837,000,000 bushels, this gives an average annual increase of 140,000,000 bu.; on the basis of an annual per capita consumption of five bushels this provides bread for 28,000,000 additional people. in the years 1915-9 the average annual export was 240,000,000 bu., and in 1920-3, 256,000,000 bushels. the domestic beet-sugar industry during the ten years 1910-9 became firmly established. in 1917 the volume of beet sugar pro- duction was less than that of cane sugar. in later years it has been far in excess. the production, in millions of pounds, was 1.775 in 1910 (cane, 750; bect, 1,025); 1,697 in 1920 (cane, 244; beet, 1,453); and 2,086 in 1924 (cane, 324; beet, 1,762). the out- lying possessions of the united states (porto rico and the philip- pine [s.} provide an amount of sugar greater than that produced at home. however, the united states is still dependent upon for- eign countries for more than half its needs. the annual per capita production of sugar was approximately 100 lb. in tg24, as compared with 70 ib. 1n 1900. the crops of hay, sweet potatoes, rye, barley and rice, with their farm values, are seen in table u1. table wi. tay and other crops 1g24 1910 5 t farm 4 ; farm ia cla value pe value millions | millions | millions | millions hay (tons) : 112 $1,468 69 £842 sweet potatoes (bu.) 72 2 60 40 rye (bu.) . : . 63 68 35 2 barley (bu.) 188 137 174 100 in 1924 the production of apples was 179,443,000 bushels. the peach crop amounted to 51,679,000 bushels. approximately 2,300,000 were devoted to truck crops. the number of cattle on farms, as reported by the bureau of the census, in 1924 was 66,506,000 (as compared with 61,804,- 000 in rgro. this increase did not keep pace with the growth in population. the number of swine in 1925 (preliminary) was 892 54,234,000, as against 58,186,000 in r910. the number of sheep fell off from 52,448,000 in 1910 to 39,134,000 (preliminary figure) in 1925. the wool crop in 1924, according to the dept. of agri- culture, was 282,330,000 lb. as compared with the maximum 318,548,000 ib. in rgtr. in 1924 the wool product of wyoming was 19,760,000 lb.; idaho, 16,800,000 lb.; montana, 19,314,000 lb.; utah, 16,884,000 lb.; new mexico, 12,408,000 lb.; texas, 22,223,000 lb.; ohio, 13,899,000 pounds. (these latter figures are preliminary.) the dept. of agriculture in its year book of 1918 estimates that 350,000,000 ac., or nearly one-fifth of the land area of the united states, is too rough or hilly for the successful cultivation of crops. it may, however, be adapted to the growth of forests, or used for grazing purposes. nearly one-third of the land area, or 600,000,000 ac., receives insufficient rainfall for the profitable production of crops at normal prices, and affords no possibility of irrigation. a total of 40,000,000 ac. is absolute desert. it 1s estimated that 200,000,000 ac. of forest, ‘‘ cut-over ”’ land, and woodland including that in farms, could be used for crops after clearing. this, if divided into farms averaging 160 ac., would provide 1,250,000 farms, or an addition of about 20° to the number of farms in the country. morcover, 60,000,000 ac. of swamp land can be drained, and 30,000,000 ac. of potentially irrigible land can be converted into farms if available sources of water supply are fully utilised. in all there are about 850,000,000 ac. of land at present in crops and potentially available. a little over i,000,000,000 ac. of non-arable land consist of 360,000,000 ac. of absolute forest land, 615,000,000 ac. of grazing land, 4o,- 000,000 ac. desert land and 40,000,000 ac. in cities, roads and railway rights of way. it is also estimated that 360,000,000 ac. of forest will not be sufficient to supply a population of 150,- 000,000, but that 450,000,000 ac. will be needed for that number. to provide food, therefore, more intensive methods of farming will be required. for corn the average yield per ac. in the five years 1900-04 was 24-2 bu., and in 1919-23, 29°5 bushels. the yields for wheat were 13-4 and 13:3 bu.; for oats 31 and 29-9 bu.; and for barley 25-7 and 23-6 bu., respectively, for the two periods in question. manufactures—a quinquennial census of manufactures was taken between 1899 and 1o1g. beginning with 1921 data are collected every two years; as the returns for 1921 and 1923 did not include establishments having products valued at less than $5,000, subsequent years are not strictly comparable with those antecedent. although small establishments having products less than $5,000 constitute in 1921 21% of the total number of establishments, the number of wage-earners, and value of prod- ucts in this class were less than 1%, and comparison of 1921 with previous years given in table iv. is fairly accurate except as to number of establishments. figures for values, however, were greatly affected by the change in the general level of prices and wages between rg14 and ig19. table iv. manufactures value added by manufac- value of products establish- ments wage- earners $20,672,052,000)$8, 529,261 24,246,435,000] 9,878,346 62,418,079,000]25,041,698 43,653,283 ,000/18,316,666 6,615,046 7,036,247 9,096,372 6,946,570 8,778,156 (not available) 196,309 60 1355:998,200 the great increase between 1914 and 1919 was due to the expansion of manufacturing activity and change in prices, occa- sioned by the world war. for wage-earners the percentage of increase was 209°3%; for value of products, 157-4; and for value added by manufacture, 153°5. arranged by the rq general groups of industries according to the classification of the bureau of census table v. shows number of wage-earners, capital invested and value of products in 1923. united states table v. groups of industries, 1923 value of preduct in millions of dollars wage- group earners food and kindred products textiles and their products \\ron and steel and their products . lumber and its manufactures leather and its finished products 682,137 1,719,434 892,660 031,748 344.545 526,795 384,493 347,619 296,911 i $6,337 606, 328 523,430 271,815 paper and printing chemicals and allied products. stone, clay, and glass products metals and metal products other than iron and steel tobacco manufactures transportation equipment, air land and water , ; ‘ railroad repair shops miscellaneous industries . all industries in 1919 ten cities: new york, chicago, philadelphia, detroit, cleveland, st. louis, baltimore, buffalo, boston and pitts- burgh, with a combined population of approximately 15, 300; 000, or about 14% of the total population, manufactured 27% of the total product value. some manufacturing industries tend or ard local concentration; for example in 1921, measured by value of product, michigan produced 47:6 °% of the products of the motor- vehicle industry in the united states; massachusetts, 33% of the boot and shoe industry; connecticut, 30°6% of brass, bronze, and copper products, and 59°5°% of ammunition; california, 47:6% of canning and preserving fruits and veeetables: illinois, 41% of the agricultural implement industry; new york, as), of men’s clothing, 76° of women’s clothing, and 59°% of leather gloves and mittens. the total value of product in 1919 was nearly three times that of 1914, increasing in dollars from 24 billion to 62 billion due to abnormal war activity and change in value of monetary unit; in 1921 there was a decline to 43-7 billion dollars. table vi. shows the product of specific industries in 1923, with a comparison for iql4. table vi. individual industries (production in millions of dollars) 1923 1914 boots and shoes : 1,000 502 bread and other bakery products 1,123 492 cars and general shop construction and repairs by steam railway companies ; ; , : | el 514 clothihg, men’s . 1,179 458 clothing, women's 1,407 474 confectionery and ice cream 626 210 cotton goods 1,goi 677 electrical machinery, apparatus, and supplies . : 1,293 335 flour-null and grist- mill products. : 1,049 878 foundry and machine-shop products 2,338 867 furniture 776 266 iron and _ steel, “stecl works, and rolling mills ats gig knit goods . 848 289 lumber and timber products , 1,494 715 motor vehicles . 3,163 503 paper and wood pulp 907 332 petroleum refining. 1,794 396 printing and publishing, ‘book and job 738 307 printing and publishing, newspapers and periodicals : 1,268 496 rubber goods. 958 301 silk goods, including throwsters 761 254 slaughtecring and meat-packing 2,586 1,454 worsted goods ; : 698 276 in order to show how far the increases given in table vi. were due to higher prices and how far due to greater volume of produc- tion, the following figures are presented showing quantity pro- duction in 1914 and 1921 with respective values at each date. united states in the silk industry there was manufactured in 1914, 216,000,000 yd. of broad silk, and in 1921, 273,600,000 yd.; the value nearly trebled from $137,720,000 to $341,000,000. pig-iron production declined from 23,270,000 tons to 16,618,000 tons, but the value increased from $312,762,000 to $408,582,000; window-glass decreased in quantity from 401,000,000 sq. ft. to 265,000,000 sq. it., but the value increased from $17,196,000 10 $24,026,000. fertilisers decreased in quantity from 8,432,000 tons to 5,994,000 tons, but owing to higher prices they gained in value from $153,000,000 to $175,000,000. in food products condensed and evaporated milk doubled in quantity from 873,000,000 lb., to 1,759,000,000 lb., while the value nearly trebled from $58,747,000 to $158,890,000; beet sugar increased in quantity from 743,000 tons to 1,030,000 tons, and the value from $58,590,000 to $128,363,000; wheat flour decreased from 116,404,000 bbl. to 110,846,000 bbl., but increased in value from $5 48,000,000 to $872,000,000. the growing demand for automobiles greatly expanded not only their manufacture, but also the refining of petroleum, and the rubber industry. the number of passenger cars manufactured in 1923 was 3,432,308, as compared with 569,000 in 1914 for all motor vehicles. the petroleum-refining industry showed a phenomenal! development due, in large part at least, to the immense increase in the num- ber of motor vehicles. the output of gasolene increased in seven years from 1,195,000,- 900 gal. to 5,098,000,000 gallons. the increase in quantity was more than four-fold and in value eight-fold. the manufacture of rubber goods greatly expanded, increasing from a value of. $301,000,000 in 1914 to $958,518,000 in 1923. in the latter year, $569,041,000 represented tires. the maximum production of lumber was reached in 1909, 44,510,000,000 ft.; in 1923 it was 37,166,000,000 ft., the decline being due to the fact that readily available timber was becoming less and less accessible. portland cement is manufactured in larger amounts and has a wide use in the building industry. during the years 1900-9 the average production was 33,000,000 bbl.; in 1924 it reached 148,859,000 barrels. the production of tin plates, terne plates and taggers tin showed a steady development; in 1g10 the output of tin plate wwas 1,410,000,000 lb., and in 1924, 2,975,000,000 pounds. an export trade was developed, the export of domestic tin plate, terne plate and taggers tin rising from an annual average in the years 1910-4 to 109,706,000 lb., to 507,159,000 lb. in 1920, and 360,633,000 lb. in 1924; import of this product has practically disappeared. the cost of new buildings in the principal cities is estimated by the u.s. geological survey (by the bureau of labour sta- tistics beginning with 1920) as follows: 1910, $726,000,000; 1915, $700,413,000; 1920, $1,343,000,000; 1924, $3,216,000,000. the figures show that, although the war checked building, the total value of the buildings constructed immediately after was much greater; costs were swollen by high prices and increased wages and do not accurately represent the volume of new building measured by physical units. after rqg09 there was but a slight increase in the number of manufacturing establishments, notwithstanding the gain in the number of wage-earners and value of product. excluding fac- tories with product valued at less than $5,000, in 1914 there were 177,110 establishments, with 6,896,190 wage-earners, and products valued at $23,988,000,000, or $135,440 per establish- ment; in 1919, 214,383 establishments, with 9,000,059 wage- earners, and products valued at $62,042,000,000, or $289,398 per establishment; in 1923, 196,309 establishments, with 8,778,- q50 wage-earners, and products valued at $60,555,998,000, or $308,472 per establishment. of the 12,818,524 persons engaged in manufacturing and mechanical industries in 1920, 10,888,183, or 85%, were males, and 1,930,341, or 15%, were females. the ovutput of minerals the value of the output of mineral products, as estimated by the u.s. geological survey, increased from $1,987,844,000 in 1910 to $6,981,340,000 in 1920, and $5,318,000,000 in 1924. nearly three-fourths was represented in 1923 by six products, 893 as follows (in millions of dollars): bituminous coal, 1,636 (469 in 1910); pig-iron, 9036 (412 in 1910); petroleum, 931 (128 in 1910); anthracite coal, 492 (160 in 1910); copper, 211 (137 in 1910); cement, 260 (69 in 1910). lead increased in value from $33,055,000 in 1910 to $76,138,000 in 1923; zinc from $27,- 268,000 to $69,134,000; aluminium from $8,956,000 to $28,305,- ooo; and natural gas from $70,756,000 to $250,000,000. platinum had a remarkable development, the product increasing from 8,665 oz., valued at $479,000 in 1915, to 66,007 oz., valued at $7,611,000 in 1924. the production of iron-ore increased from 57,015,000 long tons in r910 to a maximum record of 75,289,000 tons in 1917. after the war it fell to 29,491,000 tons in 1920, and recovered to 70,018,000 tons in 1923. more than half of the iron-ore pro- duced is mined in minnesota, amounting in 1923 to 44,498,000 tons, followed by michigan, 14,312,000 tons; alabama mined 6,837,000 tons. in 1912 the national conservation commission estimated the total supply of iron profitable to mine at 4,784,- 930,000 long tons, and 75,000,000,000 tons not worth mining. according to this estimate, the profitable ore deposits might be exhausted in 60 years, allowing for no increase in national rate of production. the ore deposits being worked in 1923 were for the most part in high surfaces in the region of the great lakes. (see iron and steel.) the production of anthracite coal in 1910 was 75,433,246 tons (of 2,240 lb.); in 1920, 79,998,000 tons, and in 1923, 85,218,000 tons, an increase of 13% over 1910, or about 1% per annum. the estimated production in 1924 was 90,214,000 tons. the bi- tuminous coal production in 1910 was 417,111,142 short tons, as compared with 545,000,000 tons in 1923, a gain of over 2% per annum. the estimated production in 1924 was 483,280,000 tons. about two-thirds of the coal consumed goes into the pro- duction of power, about equally divided between the industries and transportation; about one-sixteenth is used in raw material for making products employed industrially as coke, gas, coal- tar products; about one-sixteenth for heating homes and for buildings. (see coat.) the mining of copper does not follow a regular ascending curve of production. it reached a high point in 1906, 409,735 long tons; declined in 1907; rose to 487,925 tons in 1909; again declined in 1910; rose to 555,031 tons in 1912; fell to 513,454 in 1914; again advanced to 860,648 tons in 1916; declined to 225,708 in 1921, due to lack of european demand, and in 1923 recovered to 640,625 tons. more than one-third is produced in arizona, the principal producing state. in 1924 it was estimated that the world’s production was 1,499,143 short tons. (see copper.) the increased demand for gasolene for automobiles raised the price and led to efforts to discover new supplies of petroleum. since 1910 the production in california nearly trebled; in texas it trebled; in oklahoma more than doubled; in wyoming new oil-fields were opened. the total production in 1924 was 707,- 265,000 bbl. as against the annual average yield of 363,000,000 for the years 1916-20, and 179,000,000 in 1908. (see petro- leum. ) the director of the u.s. geological survey estimated in 1920 that the country’s oil reserves were over 40°, exhausted and that the supply at the existing rate of consumption would be exhausted within 20 years. attention has been turned to the possibility of extracting petroleum from the oil shales of utah, colorado and wyoming. petroleum ranks second only to coal in value among mineral products. the volume of natural gas products has risen steadily since the beginning of the century. in 1910 the production was 509,- 000,000 cu. it., in 1920, 798,000,210 cu. ft., and in 1923, 1,800,- 135,000 cu. feet. natural gas is found in 24 states, but chiefly in west virginia, pennsylvania, ohio, oklahoma and california. more than 3,000,000 domestic consumers are supplied. one- third is used for domestic purposes and two-thirds for indus- trial plants. the production in ro910 and 1923 is shown in table vii. the total value of yield increased from $71,000,000 in 1910 to $250,000,000 in 1923. 894 table vii. natural gas production (in million cubic feet) state west virginia pennsylvania new york ohio arkansas : : louisiana and texas kentucky illinois oklahoma ikansas california wyoming other states 1923 203,867 112,562 6,497 53,812 24,215 186,566 11,953 4,049 203,082 32,072 130,434 35:523 2,503 ig1o i91,000 127,000 6,000 48,000 8,000 7,000 50,000 59,000 3,000 10,000 total ee : : ; 1,008,135 503,000 the production of gold reached its maximum in rots, valued at $101,03§,700. during the war it declined, owing to advance in material and labour, and the decreased purchasing power of gold. (see gop.) in 1922 the production was valued at $48,- 849,100, less than in any year since 1896. in 1924 production slightly gained to a value of $51,912,000. california furnished $631,000 oz. fine; colorado, $409,000; alaska, $301,000; south dakota, $297,000. silver reached its maximum in 1911, showing a commercial value of $66,485,000; in 1923 the value was $60,135,000. preliminary figures for 1924 show a further fall to $43,540,000. montana and utah in recent years have forged ahead as great silver-producing states, nevada remaining stationary. fisheries.—according to an estimate made by the bureau of fisheries the annual fishery product during the decade 1910-9 amounted to 2,500,000,000 lb., valued at about $80,000,000. the industry employs about 200,000 persons. the total quantity of fish landed at boston and gloucester, mass., and portland, me., the three principal fishing ports in new england, amounted in 1924 to 182,948,000 \\b., having a value to the fishermen of $6,992,952. cod represented $2,138,306 and haddock $2,308,605. the product of the fisheries of the great lakes in ror7 was 104,269,000 lb., valued at $6,295,000. one-half of the product, 53,529,000 lb., was ciscoes (whitefish). the product of the fisheries of the gulf states in 1918 was 130,924,000 ib., valued at $6,510,000. the principal products were: mullet, 28,641,000 ib.; shrimp, 27,143,000 lb.; and oysters, 23,754,000 lb. at seattle, wash., the fishing fleet landed, in 1924, 28,233,000 |b., valued at $2,719,222. the principal product was halibut. the total catch of salmon and steelhead trout on the pacific coast in 1919 including alaska was 767,000,000 pounds. it is estimated that the annual yield of oysters for the whole united states is about 30,000,000 bu., giving a return to the fishermen of nearly $15,000,000. about one-fifth, 5,942,000 bu., come from the coast of the middle atlantic states. production.—prof. edmund e. day of harvard made an ingenious statistical study of the physical volume of production in the united states for the period 1888-1919, published in the review of economic statistics (harvard university, sept. 1920-jan. 1921), and continued by the harvard economic service through the year 1924. the conclusions are shown in table viii. with 1899 as the base (100), index numbers for subsequent years were calculated for agriculture, representing 12 important crops—for mining, representing 10 minerals— and for manufacturing, representing 12 groups, covering 34 branches of manufacture. the indices for population are added in order to compare the growth of production. table viil. shows that the physical volume of agricultural production has closely followed the growth of population. as prof. day points out: “ mining output, on the other hand, completely out-distanced population growth. since 1897 the development of mining has been phenomenal . .. . crops are an annual harvest from a soil the fertility of which scientific cultivation carefully preserves; mineral production is a con- tinuing exhaustion of irreplaceable natural deposit. mining united states table viii. index numbers of production year population | agriculture mining manufacture 1899 _. 100 100 100 oo 1900 . 102 ioi 106 ioi i9g01_. 104 89 115 ii2 1902. 106 ii 4 123 [22 1903. 108 105 135 [2 1904. 110 116 ~ “e26 132 1905. i12 118 - 762 143 1906, its l2 170 152 1907. 117 112 — 186 151 ig08.. 119g 119 154 126 ig09 . 121 118 189 155 i9io 12 122: .. 208 159 ioik . 125 115 207 153 iqi2. 127 137 221 177 1913. 130 121 237 b84 iqi4 132 137 225 169 1915 . 133 144 239 189 1916, 135 126 269 225 iqi7. 137 134 238 227 igi8 138 135 289 223 iqigq 140 137 257 218 1920. . 142 150 293 231 192k... i44 12 233... 179 1922. 146 33 254 240 1923. 148 138 215 283 1924. tvpically lives upon its capital; agriculture upon its income. the rate of production in mining is consequently open to an acceleration which in agriculture is altogether impossible .. . . the fluctuations of manufacturing output appear to be much more cyclical than the variations in agricultural production. in general the fluctuations of production in manufacture resem- ble closely those in mining.” bibliography.—see fourieenth census of the united siates 1920, vol. v., vi., agriculiure; vol. viil-nx., manufactures, vol. xl, afines and quarries, the biennial census of munufactures 1921, appeared in 1923, and the brennzal census of manufactures 1923 in 1925. the annual volume afineral resources of the united states contains the bulletins of the geological survey of the dept. of the interior, statistics of commerce are analysed in the commerce yearbook pub- lished by the dept. of commerce. the u.s. tarif commission has published several! volumes in which commercial statistics are re- arranged for use in tariff discussion, e.g., the wool-growing in- dustry. price statistics for retail and wholesale trade are gathered and published by the federal bureau of labour statistics. a valuable series of studies on price statistics of cifferent groups of commodities during the world war was published under the editorship of w. c. mitchell by the war industries board under the titles history of prices during the warand government control over prices. the bureau of labour statistics also issues frequent bulletins showing wages in different trades in different parts of the country. see also the annual reports and the monthly bulletins of the federal reserve board which contain a large variety of commercial and trade statistics, more detailed data on which may be found in the monthly bulletins of the several district banks. the statistical abstract of the united states assembles data on agriculture, fisheries, forestry, manu- factures, mines and shipping. sce also raymond pearl, the nation’s food (1920); and w. m. parsons, judices of general bustness condt- tons (1919). trade with foreign countries extraordinary movements in foreign commerce, due to the world war, began with 19015. during the years 1900-9, in- clusive, the excess of exports over imports of merchandise varied in value from a maximum of $666,000,000 in 1908 to a minimum of $188,000,000 in r9ro. beginning with 1915 the annual excess was over a thousand million dollars, reaching in to19, $4,016,- 000,000. gradually there was a return to pre-war balances, showing $375,000,000 in 1923 but rising to $981,000,000 in 1924. table i. shows the movement by years, and the excess of exports over imports in each year. the excess of exports over imports in trade with european countries was even greater than the balance from total trade with all countries, amounting in ror1g to $4,437,000,000. in 1924 this balance was lowered to $1,348,134. trade with south america uniformly showed an excess of imports over exports united states table i. foretgn trade (in millions of dollars) _ excess of exports over imports 188 522 551 653 471 t,094 2,136 3,631 2,974 4,016 2,950 1,976 719 375 o81 exports imports 3,610 ranging from $73,700,000 in r9tt to $252,800,000 in 1918, $11,406,000 in 1924; and trade with asia also gave adverse balances ranging from $128,000,000 in 1911 to $416,766,000 in 1924. the figures given here relate to values of exports and imports, and do not even approximately reflect the changes in the physical volume of foreign commerce. for some of the commodities recorded in official statistics of exports and im- ports it is possible to give quantitics as well as values; for others only values. in order to illustrate the influence of prices on abnormal values of commodities entering into foreign trade during the war period, quantities are given in table ii. of exports for five commodities: wheat, cotton, bacon, mineral oil and tobacco; for other principal commodities only values are stated. table iii. shows the similar influence of change in price level on imports. the enormous excess of exports of merchandise over imports, which began to be so marked in tors, resulted in unprecedented gold transfers to the united states. in 1916 the import of gold 895 exceeded the export by $403,750,000, and in 1917 by $685,255,- ooo. thus in two years the gold holdings were increased by $1,089,000,000. in the years 1918-20 $436,532,000 of this gold -was exported, leaving a net additional balance of $65 2,000,000. in the years 1921-4 the flow of gold to the united states amounted in excess of exports to $1,587,882 ,000. binliography,—statistics of commerce are compiled by the dept. of commerce and’ published in two annual volumes, foreign cont- merce and navigation, and the commerce yearbook. the annual volume, statistical abstract of the united states, also published by the dept. of commerce, contains valuable data on foreign commerce. a useful statistical handbook is the financial review, an annua! published by the conzmercial and financial chronicle, new york. (d. r. d.) agriculture in the united states in the united states agriculture is in the hands of 6,400,000 farmers, a number which has not changed appreciably between toro and 1926. | effect of the war.—the outbreak of war in 1914 caused a vio- lent disturbance of the price relationships of american agricul- tural products. in general, prices advanced; but for cotton, particularly, the market was demoralised. as the struggle pro- gressed commodity prices rose sharply and production of export- able foodstuffs was greatly stimulated. during the last two years of the war and the year following, prices ruled very high, and this condition was accompanied by expanding credit facilities and a marked increase in the price of land. the economic reac- tion which set in during 1920 affected agriculture very severely. demoralised financial conditions in europe resulted in sharp reductions in the prices of agricultural exports, and these affected directly the prices of the vastly larger volume of these same commodities consumed at home. after many months of un- cerlainty and distress, conditions began slowly to mend so that at the close of the period there were evidences of definite improvement. the major agricultural industries of the united states in- clude the production of cercals or breadstulfs, hay and forage, united states table ii. exports of principal commodities, 1910-23 | = ne es = =| re e a s a os | 5 $3.2 3 ay oe es = o = £5 ly. (a sy a es) se ee || oe es years = 5 x om = on s sle o “| bush-| dol- bales dol- dol- | gal- | dol- dol- | dol- | dol- | dol- | dol- | dol- | dol- | dol- els | lars (ail) lars (nit) lars | lons | lars ( ie) lars | lars | lars | lars j lars | lars | lars | lars (mil.) | (mil.) ‘7 | (mil.) 71 cmil.) | gil.) | gil.) |s!\" | (mil) | (mil) | (mil) | (mil. | gmil.) | (mil.) | (mil.) | (mil. 1910-4 av.) 57 557): oho 552 | 182 23 | 1,734 | 117 | 392 45 si } 118 52 19 45 | 139 58 1915-9 159 271 6:0 566 | 669 16g | 2,512 | 235 a24 84 158 207 97 81 141 601 i4i 1920. 218 597 6:2 | 1,136 | 636 156 | 3,080 | 548 480 245 224 142 143 212 402 661 192 1921 280 433 6-5 534] 415 68 | 2,789 | 384 52: 205 118 98 il3 43 117 32. 61 1922 , 165 206 6-i 673 | 342 52 | 2,922] 331 4.42 146 85 104 gi 60 139 189 62 1923 : 98 116 5:3 807 | 457 60 | 3,987 | 350 497 153 88 129 130 ioo 138 234 65 1924 166 6:8 ; a 5.46 163 qi 157 126 132 133 408 69 table it. jatports of principal commodities, r910-23 woe n th “ss tv “+ a a i + = 5 3 a3 /29 a5 3 so : 6.5 ; : se (42/88 | os |s8e| 38] 8 | exe ; s 2m o a = kom, 60 a & 24 bogs] se = o. cg year o aa 7 f ro 2 © =. cs ~ |o& lb oe ee ee . ie | ae dol- | dol- | dole | dol- | dol- | dol- dol- “ar ars ner ars ame ars nt ars at ars lars lars lars | lars lars lars lars (mil.) (mil.) imil.) (mil.) (mil.) (mil.) (mit.) (mil.)} (mil.) (mil.) | gmil.) | (aul. | gmil.) | (mil.) | (mil.) | gmil.) | (mil.) iglo-4ayv.| 899] ioi | 532 7 105 | 24 77 | 4.341 | to4] 208 | 39 | 86 | 67 | 41 | 27 | 42 | 37 | 32 i9t5-9 1,166] 120 | 573 152 32 148 | 5,422 231 | 403 153 158 47 61 6i 53 45 67 1920 =. | 1,297 | 252 510 244 30 285 | 8,029 | 1,009 | 260 127 243 138 108 108 ¥20 99 189 1921 1,341 |] 143 | 348 68 | 45 259 | 5,907} 235 | 321 60 74 75 5! 40 78 6o | 133 1922 1,246] i6t | §51 | 107 51 366 | 9,722 | 252 | 377 7 | 102 87 63 59 07 74 | 159 1923 . | 1,410 | 190 532 119 49 392 | 7,709 380 | 394 130 185 100 85 65 122 67 205 1924 . | 1,417] 249 | 357 75 51 328 | 8,272 | 363 | 268 93 17-4 gl 74 60 12 ay | 202 &96 meat and wool, dairy products, fruits and vegetables, sugar, tobacca, cotton and forest products, in which are included lumber, naval stores and paper. some of these industries are rather definitely localised to one or more sections of the country, while others are contributed to from nearly every section. in the 15 years between roto and 1925, there have been no signifi- cant changes in the relative importance of these industries except possibly in the group of fruits and vegetables where there appears to have been a marked increase in certain classes. cereals.—-the production of cereals is carried on to some extent in nearly every part of the country, but is of major importance in the mississippi valley and westward to the pacific coast. these crops occupy approximately 225,000,000 ac. each year, of which nearly half is devoted to corn or maize. the total cereal crop of the country fluctuates annually, mainly owing to climatic conditions, and during the period under review it has ranged from 125,000,000 to 150,000,000 tons. one new ccreal crop, grain sorghum, has been added to the list in recent years. it occupies about 5,000,000 ac. each year, chiefly in the southern great plains and in the irrigated southwest, where it has proved a safer crop than maize under arid conditions. improved varieties of winter wheat have made it possible to extend this crop further north- ward than it was formerly grown. rice production, formerly confined to the central gulf coast region, has been established also in california. hay.—hay and related forage crops occupy about 70,000,000 ac. and yield approximately 100,000,000 tons each year. one new hay crop, sudan grass, has come into use in recent years. itisa species of sorghum, closely related to johnson grass, and grown chiefly in the southern great plains region. in the dairy sections, maize stored as silage is an increasingly important fodder crop. meut.—the production of meat includes cattle, hogs and sheep. the cattle and sheep are bred on range pastures in the western half of the united states. from these breeding grounds the young stock is moved eastward to finish their growth and fattening in the corn belt of the upper mississippi valley. some lambs are fattened on irrigated lands adjacent to the west- ern ranges where the by-products of beet-sugar factories are utilised together with alfalfa hay. a part of the young cattle are kept on the ranges during the growth period, while others are moved into the western edge of the corn belt. the final fat- tening in both cases takes place on corn-belt farms so that the great bulk of the corn (maize) crop is converted into meat on the farms where it is produced. the production of pork 1s more localised. some pork is produced on western irrigated lands, where the growing pigs are pastured on alfalfa to be fattened locally or to be shipped eastward to be fattened with cattle on cora. for the most part, however, hogs are bred in the corn belt to be fattened locally, utilising the wastes from cattle feeding. the meat-producing potentialities of the cotton belt are very great, including, in addition to pasture and corn lands, the by- products from the manufacture of oil from cotton seed. in the past, the full use of these resources has been hindered by the prevalence of a serious cattle discase known as texas fever. definite progress has been made in controlling this disease and thus in extending the areas available for efhcient meat produc- tion. the shecp of the united states, of which the number ranges from 40,000,000 to 50,000,000, yield wool as well as meat. the annual wool crop ranges around 150,000 tons which is slightly less than half the total consumption of the country. datry products —dairy products are obtained from about 25,000,000 cows in the united states. the number has increased from about 20,000,cc0 in rg10. of the milk produced by these cows, about half is directly consumed. about 35% is used for making butter and about 4% goes into each of the three other important products, viz.: cheese, condensed milk and ice cream. while the dairy industry is carried on in every section of the country, it is most highly developed in the north-central states. only eight of the 48 states have more than a million dairy cows. the significant developments of the dairy industry in recent years have been the improvement by breeding and selection for higher production. the control of bovine tuberculosis and the centrali- united status sation of the manufacture of daisy products. the country ts practically self-sustaining with respect to these products. fruits and vegetables —the production of fruits and vege- tables constitutes in the aggregate a most important feature of agriculture in the united states; but 1t comprises a group of such diverse commodities, handled and measured in so many different ways, that it is difficult to present the salient facts in a concise statement. there has been in recent years a very pronounced increase in the volume of interstate movement of fresh fruits and vegetables. it is evident that the consumption per capita of fruits and vegetables is steadily increasing, and also there ts a tendency to expand production in areas where climatic and soil conditions are favourable and to co-operate in the organisation and development of agencies for the effective distribution and marketing of the products. this has resulted in better quality and longer marketing seasons for many of these commodities. forest products.—in the united states, excluding alaska, about 470,000,000 ac. of jand are classed as forest, of which slight- ly less than 140,000,000 ac. are included in national forests. from this area, the timber crop is being harvested faster than it is being produced. the production of lumber in 1922 was only about two-thirds of what it was in 1910, 44,000 million ft. in 1910 and 31,000 million ft. in 1922, but rose to 37,000 million ft. in 1923. another important forest product is pulp- wood for paper of which the united states consumes annually nearly 6,000,000 cords,‘ and of which two-thirds comes from domestic forests. while'the production of lumber has decreased during the past 15 years, the production as well as the consump- tion of pulpwood has increased, the production by nearly 50% and the consumption by nearly 100%. the other important forest products include turpentine and resin. the annual out- put from ro10 to 1925 has been about 30,000,000 gal. of turpen- tine and 2,000,000 bbl. of resin. cotten.—the production of cotton (q.v.) is confined to the southern states where the crop occupies ordinarily 35,000,000 ac. of land. during 1924 and 1925 the acreage has been sub- stantially higher, reaching 46 million in 1925. the crop of the united states constitutes approximately half of the total world production, and the value of that part of the crop (about one half) exported from the united states has, until recently, equalled or exceeded the combined value of all other agricultural exports. both in yield and price the fluctuations of this crop have been greater than those of any other important crop. the cotton plant is subject to injury from a number of diseases and insect pests. probably the most serious of these is an insect known as the mexican cotton boll weevil (g.v.). this pest invaded the united states from mexico in +892 and is now established over most of the cotton belt except for a narrow fringe on the north and broader areas to the west where its distribution is limited by climatic conditions. since 1910 the production of cotton has been extended over a large part of northwest texas and into irrigated sections of new mexico, arizona and california. the aggregate area of irrigated cotton is less than 5,000,000 ac., but conditions favour larger yields in the main belt. there has been a continuing increase in the manufacture of cotton, most marked in the southeastern states. formerly cotton manufacture was confined to the states of the northeast, and while the industry has continued to expand in that section, its growth in the south has been much more rapid. the increase in cotton manufacture in the united states has been more rapid than the increase in cotton production, with the result that a smaller proportion of the crop has been available for export. another important development in relation to the cotton indus- try has been the better utilisation of the cotton seed. the crop yiclds two pounds of seed for each pound of fibre. this seed, when crushed, vields 40 gal. or more of oil per ton. the residue of meal and hulls is used as feed for livestock while the oil, after refining, yields edible fats that are widely used as human food. tobacco.—tobacco is an important crop in several well-defined districts of the united states, in each of which a special type is produced. the aggregate acreage has varied in recent years from 1,000,000 to 2,000,000 ac. with a tendency toward an increase. united states the crop is estimated as having a farm value of from $100,000,000 to 500,000,000. sugar.—sugar 1s produced in the united states from sugar beets and cane. cane production is confined to louisiana where 200,000 to 300,000 ac. are devoted to the crop, yielding from 100,000 to 350,000 tons of sugar annually. the yield of sugar hluctuates from year to year, but there has been no significant trend of change in recent years. sugar beets are grown exten- sively on irrigated lands in the western states and there are about 200,000 ac. in the states of michigan, wisconsin and ohio de- voted to the crop. in the western states, the aggregate area is approximately 500,000 acres. the acreage and production of sugar beets has doubled since 1910, the annual yield of sugar from this source is now about 1,000,000 tons. the total consump- tion of sugar in the united states has increased from 3,500,000 tons in roro to nearly 6,000,000 tons in 1925. the annual con- sumption per cupitu has increased from 8o0 lb. to more than 100 pounds. ex ports.—of certain classes of commodities the united states produces more than it consumes. although domestic require- ments greatly exceed exports, domestic price levels are deter- mined very largely by the prices obtainable for the exportable surpluses. the volume of the exports of the more important groups of agricultural commodities for the past 15 years is shown in table i. table i. exports of important agricultural commodities from the united states, 1010-25. year cereals aes dhe fer cotton fons tons tons tons average, 1910-4 | 4,624,300 12,500 628,500 | 2,210,000 i9i5. « || fa,147,000 51,000 807,000 | 2,201,000 1916. 11,155,000] 109,000 1,004,500 | 1,542,000 iqi7? 10,375,000 | 176,000 1,003,500 | 1,544,000 i9i8 8,618,000] 295,500 | 1,173,500 | 1,160,000 i9gig 12,566,000 | 390,500 1,729,000 | 1,381,500 1920 16,130,000] 378,500 1,112,500 | 1,771,750 1921 15,220,000] 142,500 907,500 | 1,405,750 ig22 15,460,000] 152,000 go0,000 | 1,679,500 1923 11,795,000 89,000 1,010,500 | 1,363,250 1924 6,445,000/ 113,000 | 1,078,000 | 1,474,750 1925 10,290,000 98,500 819,000 | 2,109,750 this table shows that for the war period and since, the exports of foodstuffs greatly exceeded the average for the pre-war period. the exports of cotton have been lower during and since the war, but this is due in part at least to the smaller crops of the post- war period. production efficiency.—this general review of the more im- portant agricultural industries of the country appears to war- rant the conclusion that farmers are steadily increasing the effi- ciency of production. during the past 15 years the population of the country has increased by nearly 20%. the indications are that domestic consumption of agricultural products per cupita has also increased. the number of farms has remained constant, and while the acreage devoted to crop production has increased somewhat, the number of workers engaged in farming has not changed significantly. hence it is apparent that the volume of production for each worker has increased. there are several factors that may have contributed to this result. two of the more important appear to be agricultural education and the internal-combustion engine. systematic education in agri- culture began to be generally available toward the end of the last century. it has been rapidly improved and extended during the past 25 years. in addition to the services of agricultural schools and col- leges, larmers have had the service of a nation-wide system of advice and assistance in dealing with their production prob- lems. this agricultural extension service was begun in a small way as early as roo4 to meet the exigency created in the cotton belt by the invasion of the cotton boll weevil. it was extended later into other sections and in 1913 was definitely established over the whole country. there’can be no doubt that education 897 and the application of science to agriculture has contributed greatly to the efficiency of production. the internal-combustion engine has come into very general use by farmers during the past 15 years. a great variety of stationary types have been utilised in doing the work of the farm. automotive types have found a place in certain classes of field-work, and the automo- bile has come to be very extensively used both as a passenger vehicle and as a truck. the saving of time and the lightening of \\abour resulting from this new form of power is not easily measur- able, but it is obvious that it has been a factor of great impor- tance in changing the conditions of farming and of country life. economic conditions.—during the past 15 years the business of farming in the united states has experienced a period of great prosperity, followed by a period of depression. during the period of agricultural expansion culminating in 1910, new lands were cheap, and farms increased in value as time went on, even if the profits from production were low. from 1910 to 1920 land prices advanced even more rapidly than formerly, so that new enter- prises called for capital investments much higher than had pre- viously been known. during the same period the conditions of credit for agriculture were greatly improved, so that the post- war period of readjustment beginning in 1920 found agriculture carrying an unprecedented burden of indebtedness for which it has been difficult to find interest payments and still more diffi- cult to liquidate. a substantial improvement of credit conditions for agriculture was achieved in 1916. asa result of the federal farm loan act (see fepeeral farm loan act). other credit facilities have been added, one of which is known as intermediate credit to provide capital for such agricultural operations as live-stock production that may require two or three years to complete. another system of credit has been based on warehouse receipts issued for standardised agricultural products such as grain and cotton. such receipts are extensively used as collateral for short- time loans, which makes it possible for farmers either individually or co-operatively to meet seasonal production expenses without selling the product at harvest time if market conditions are not favourable. agricultural co-operation has alsa made definite progress during the past 15 years. this has had on the one hand the advantage of more efficient and orderly marketing to the direct financial benefit of the co-operators, and on the other hand co-operators have learned something of market requirements, of the value of improved methods of production, and of the use of market grades and standards. in many instances these edu- cational benefits have outweighed the direct financial benefits. science tn clpriculture—the problems of agriculture have been the subject of much scientific inquiry for a generation or more. such inquiry has been liberally supported by the federal govt. and by the states, and effective work has been done by various independent agencies. the results have been usefully applied in very many different fields. some of the more out- standing achievements have been made in connection with the control of serious plant and animal diseases. methods of spray- ing orchard fruits and vines have been widely and effectively used to control or prevent injury from both insects and fungous parasites. a vaccine for hog cholera has been developed. steady progress ts being made in restricting bovine tuberculosis and texas fever. these and many other diseases and pests have laid a heavy tax on farming that has been lightened by applying the results of scientific work. the problems of soil fertility—among the first undertaken by agricultural scientists —engage attention. one of the forward steps in this field has been the recognition that acid soils are not unpro- ductive with all crops, but are indeed necessary for the success- ful production of certain crops. coincident with this, the char- acter and causes of soil acidity and of soil alkalinity have be- come known. in the field of plant breeding great progress has been made, not only in the understanding and application of the laws of heredity but also in the introduction of breeding varieties suited to special conditions of soil or climate, and breeding for resistance to plant diseases. the utilisation by farmers of these results of scientific inquiry has been an important factor in in- creasing the efliciency of production. while it cannot be said 898 united states that farmers in the united states have been able as yet to pro- | duce yields per acre as high as the yields obtained in europe, it can be claimed that the production per man engaged in farming fie 3 1b am increase of population in- increase | crease ul 1925 1920 igio estimated is very much higher. the yield per acre appears to be steadily though slowly rising. the increase in efhciency per man has been new england more rapid, especially in recent years. this increase has been nine 768,014) 742,371 25,6431 3-5 782,541 gained with steadily lessening manual labour, with more time new for social enjoyments and with a continuing improvement of aaa tas 443,083 430,572 12,511] 2:9 ee living conditions on the farms. alee ie 352,428) 355,956) — 3,528) —1-0 357,42 bibliography.—see fourteenth census of the united states, 1920, setts 3,852,356] 3,366,416] 485,940] 14-4 | 4,154,746 vol. v, vi, agriculture. the federal dept. of agriculture issues many rhode statistical bulletins relating to crops, supplies and stocks of staple island 604,397/ 542,610 61,787| 11-4 679,260 | commodities. the most important of these are summarised in the connecticut | 1,380,638] 1,114,756, 265,875] 23-9 | 1,531,255 year book of the department of agriculture. the statistical abstract oe ee |, fee of the united states, published annually, contains much data on 7,400,909] 6,552,681) 848,228) 12-9 | 7,950,401 agriculture, consumption estimates and prices. the financial re- middle : icu, published annually by the commercial and financial chronicle, atlantic ; 7 6 new york, contains useful information on crops, the bureau of the new york [10,385,227 9,113,614 1,271,613) 14:0 es = census also issued preliminary figures of the u.s. census of agricul- new jersey | 3,155,900) 2,537,167) 618,733] 24-4 | 3,506.42 ture, 1925. final figures had in july 1926 appeared only for con- pennsyl- : | 5 8 6 necticut, delaware, maine, massachusetts, new hampshire, rhode vanla 8,720,018; a 7,665,111] 1,054,906] 13- 9,317,647 island, vermont and the district of columbia. these contain sepa 23,929,700 | s 22,261,14419,315,892) 2,945,252| 15-2 |23,929,700 interesting comparisons with former years. (c. 3.577) vet north ' rt ac th j central iv. population and immigration ohis:. 5,789,404| 4,767,121} 992,273] 20-8 | 6,321,839 | total population—in 1920 (jan. 1) the population of the inte 2,930,390} 2,700,876 ae eat 8°5 ae sue united states (excluding all outlying possessions) was 105,710,- ee 6,485,280) 5,038,591 gah [e aoa ea 95 : ; ree michigan . 3,068, 412] 2,810,173] 858,239] 30-5 | 4,154,625 620, as compared with 91,972,266 in ro10 (april 15). the rate wisconsin | 2,632,067| 2.333,860| 298,207] 12-8 | 2,801,008 of increase between these two dates, 14-:9°6, was considerably sa ncrn eer repel ree era (gy ere stf less than in the preceding decades. never before in a 1o-year w. 21,475,543/18,250,621) 3,224,922] 17°7 |23,302,53 : , sh ce : est north period had the rate of increase fallen below 20°. the decline central | was duce to the large falling off of immigration in the last half of minnesota | 2,387,125] 2,075,708) 311,417] 15:0 | 2,563,550 | the decade, and in some slight degree to the epidemic of in- lowa . 2,404,021) 2,224,771; 179,250 8-1 215051509 | fluenza in 1918, as well as to the casualties resulting from the ta 3,404,055] 3,293,335) 110,720) 3-4 | 3,400,701 ! world war. the population of the outlying possessions was dakota 646,872} 577,0361 69,816] 12-1 686,424 | 12,112,545, of which the philippine is. furnished more than so. dakota 636,547 583,888 52,659] 9-0 681,560 10,000,000. the total population of the united states with its nebraska . | 1,296,372] 1,192,214) 104,158 ae eee outlying possessions in 1920, therefore, numbered 117,823,165. inansas 1,769,257 1,690,949) 78,308) 4-6 | 1,813,621 | excluding the outlying possessions, the total addition to the 12,544,249|11,637,921| 906,328] 7:8 {13,072,876 , population in the decade r910-20 was 13,738,354 as compared ne sais oo eee aia ’ . ie verse . eres jclaware . 223,003) 202,322 20, : ott with nearly 16,000,000 in the previous decade. the estimated maryland 1,449,661] 1,295,346] 154,315] 11-9 | 1,537,085 population of the continental united states in 1925 (july 1) histuickot was 113,493,720. columbia 437,571} 331,069] 106,502] 32:2 497,906 | territorial divisions and component states —the accompany- ne ; 25300)187 2,061,612 2471575 a6 fo | . eae nee tat \", virginia | 1,463,701] 1,221,119] 242,582 ; ,ool, ing table i. shows the population by territorial div isons and n. carolina | 2'559.123| 2,206,287] 382'836| 16-0 | 2,759,014 component states, with changes between 1910 and 1920, with a s. carolina | 1,683,724} 1,515,400] 168,324] 11-1 | 1,779,084 final column of estimated population in 1925. (figures for georgia 2,895,832| 2,609,121] 286,711] 11-0 | 3,058,260 florida, massachusetts, rhode island and south dakota, i'lorida 963,470, 752,619) 215,851) 28-7 | 1,263,549 however, are based upon state censuses taken in 1925.) 13,990,272/t2,194,895] 1,795,377| 14°7 [15,180,191 there was no change between 1910 and 10920 in the relative-} |east south rank of the territorial divisions, and only minor shiftings for act a : basel, <b | ppc : ai a tat | <entucky | 2,416,630] 2,289,905] 126,72 488,42: most of the aie nip nites rising ane sout to 8th cae tcnneseees. | 2347 68s] 21847801. ins 000l) 7:0: | 2.424.616 more than one-half the increase in population was found in the alabama 2,348,174] 2,138,093! 210,081| 9-8 | 2,467,190 north, and the rate of gain in this section was greater than in the mississippi | 1,790,615] 1,797,114] —6,496] —o-4 | 1,790,618 south, but less than in the west. sa aah ee a et gee oe ae wae ; ; exe 8,893,307| 8,409,901 83,406 . 1 70,8: sex.—by sex the population in 1920 was divided as follows: | [wrest south pod eihc res ae bee li ange te males, 53,900,376; females, 51,810,244—-104 males to 100 fe- central males. the excess of males is attributable in part to immigra- eer ats ee 4] 1; pies 419 775755 ne i. sf9 224 : . so nae 7 ouisiana . | 1,798,509] 1,656,388} 142,12 : ecu i oe ae sa oreaaet oe deni ey ses oklahoma ‘1.5028 984a gorse) 475.028) soa |3058.696 number t at secs es. na few states the females are in excess texas 4,663,228 3,896,542 766,686 19-7 5,097,574 of males 7.e., in massachusetts 96-3 males to roo females; in es aip (esng rea on are ay ert ae rhode island, 97. this is probably due to the inflow of female tec 10/24 2(224) 8,784,534) 1,457 000) 1070: 111,008,059 operatives to the textile factories. in some of the far-western tata ha 548,889} 376,053) 172,836] 46-0 646,806 states the proportion of males to females runs very high, as in idaho | 431,866] 325,594| 106,272] 32-6 492,071 nevada, 148-4; wyoming, 131-3; arizona, 121-9. the mining wyoming . 194,$02) 145,965] 48,437 33:2 serene industry accounts for these differences. the two sexes in these colorado 939,029] 799,024] 140,605) 17-6 | 1,019,28¢ : howex . ‘ haga new mexico| 360,350} 327,301 33,049) 10-1 379,074 sections, owever, are nearer ae numbers than in iqgio, when arizona 334,162 204,354 129,808 63°5 407,702 the ratio of males for the mountain states was 128 to 100 females, utah . 449.396] 373,351 76,045] 20-4 492,478 while in 1920 it fell to 115-7. in the pacific states the ratio nevada 771497 81,875 4,468] —5°5 77407 dropped from 130 to 114, showing that these sections are rapidly 3,336,101| 2,633,517, 702,584) 26-7 | 3,736,666 approaching the standard forms of family life which obtain in | |pacific the older portions of the country. a ashington eee bee ee os paves near rap mo ee a regon 783.380] 672,765| 110,624] 16-4 | 846, negroes, indians and orientals —the negro population in california | 3,426,861| 2,377,540! 1,039.312| 44:1 | 4,021,320 1920 was nearly 10% of the total population, 7.¢., 10,463,131 ina total of 105,710,620. for full details see necro. 4,192,304 1,374,507 6,345,595 united states the number of indians declined from 265,683 in 1910 to 244,437 in 1920. this apparent decrease, however, is probably due to the fact that in 1910 persons with only slight traces of indian blood were enumerated as indians, and in 1920 were classified as whites. the chinese also decreased in number, as might be expected from the policy of exclusion; in 1910 there were 71,531, and in 1920, 61,639. the number of japanese, however, increased from 72,157 to 111,010, or 53-9%. about 30,000 of this increase is credited to california, and a little over 4,000 to the state of washington. foreign-born.—the foreign-born white population, owing to the check in immigration resulting from the world war, in- creased but slightly, from 13,345,545 to 13,712,754, of 2°7% between 1910 and 1920, as against an increase of 30:7 % between 1900 and 1910. the numerical increase in this group of the population, 367,209, was much smaller than in any preceding decade since 1850. this element increased between 1910 and 1920 in 20 states and the district of columbia, and decreased in 28 states: in the previous decade there was a gain in every state except five, arizona and texas showed the lar gest rate of increase, 67% and 50% respectively, due to mexican immigra- tion, table hee shows the foreign-born whites for the four states having over 1,000,000 of this element in 1920. in 1910 the foreign-born whites constituted 14-5°¢ of the total popula- tion of the united states and in 1920, 13%. the nativity of the white population in 1920 is shown in ‘table hii. little over table ii. foreign-born whites per cent | per cent increase | increase 1910-20 otate 1920 i9io 1900 2,560] 964,635 i ee 840,114 2721 ,889,523 719 982,543 illinois massachusetts new york pennsylvania onc-half of the total white population 55-3°%, was native born with native-born parents. in new england only 30°8% were in this group; and in massachusetts less than one-third, 31-0. according to the post-war map, the countries from which had come the largest numbers of foreign-born who were in the united states in 1920, were germany, 1,686,108; italy, 1,610,- 113; russia, 1,410,495; poland, 1,139,979; canada, 1,124,925; ireland, 1,037,234; england, 813,853; sweden, 625,585; austria, 575,627. table ill. nativity of whites, 1920 number per cent native parentage 58,421,957 55-3 foreign parentage 15,694,539 14:8 mixed parentage 6,991,665 6-6 _ total native born . 81,108,161 76-7 foreign-born white 13,712,754 13-0 total white 94,820,915 89:7 negro . 10,463,131 9:9 other non-white races 426,574 o-4 total population 105,710,620 100-0 the following figures show the total number of foreign-born whites in certain states, with the forcign country which had furnished the largest number in that state: california, 757,625 (italy, 88,504); illinois, 1,206,951 (germany, 205,491); massa- chusetts, 1,077,534 (ireland, 183,171); michigan, 726,635 (canada, 164,502); minnesota, 486,164 (sweden, 112,117); new jersey, 738,613 (italy, 157,285); new york, 2,786,112 (italy, 545,173); ohio, 678,697 (germany, 111,893); pennsyl- vania, 1,387,850 (italy, 222,764); texas, 360,519 (mexico, 219,- 652); wisconsin, 460,128 (germany, 151,250). in connection with the problems of americanisation the sta- tistics of citizenship of the foreign born are of interest. in 1920, 12,686,393, or 89:4° of this element, werc 21 years of age and over; 7,063,594 were men and 5,622,799 were women. table | 899 1¥v. shows the number in 1920 naturalised, those who had taken out first papers, aliens, and those for whom no reports were obtained. table iv. nuttralisations, 1920 men women number | per cent | number | per cent naturalised . | 3,322,104 47°8 2,899,601 52-0 first papers 1,120,833 16-1 77,755 1-4 alien. 2,253,691 30°9 2,226,072 40-0 no reports 366,966 5:2 376,775 6-6 in tgto, 45°6°% of the men were naturalised, as compared with 47-8°% in 1920, and only 8-6% had taken out first papers, as compared with 16:1 0 in 1920. increasing facilities in ocean transportation, and the higher wages received by immigrants, enabling them to travel, led to a constant stream of repatriation in the years following the war. in order to determine the net increase of population by immi- gration, it is necessary, therefore, to determine both arrivals and departures. table v. compiled by the bureau of immigra- tion, shows the changes for the 14 years tg1o~-24. table v. immigrants, tn thousands admitted departed ee es 2 added ae oon- on- to pop- immi- | oe emi ae dol seri immi- | total sant te total | ulation since ro15 there has been a marked decline in immigration, due to the world war. in the five years 1910~4, the total num- ber of immigrants was 5,174,000, and in the succeeding five years ending in 1919, only 1,173,000. in 1921 immigration in- creased to pre-war figures; declined in 1922 owing to industrial depression; but by 1923 again was tending upward. immigrants may be classified (2) as to race or people and (2) as to country of last residence. table vi. shows immigration, table vi. immigrant aliens, by race 1924 i9i0 race or people pp 1 ; er-cent. : per cent number of total number of total croatian and slovenian . rive gerd 0-6 39,562 4 dutch and flemish . 7,840 i-i 13,012 i english 93,939 13°3 53,498 5 french 48,632 6-9 21,107 2 german 95,62 13°5 71,380 7 greek : ; 5,252 o°7 39,135 4 liebrew .. : 49,989 71 ,260 8 irish. 42,364 6-0 38,382 4 italian, north . 11,576 1:6 30,780 3 italian, south 47,633 6-7 192,673 19 lithuanian 1,991 0:3 22,714 2 magyar 7,440 i-i 27,302 3 mexican 87,648 12-4 17,760 2 polish 19,371 2-7 128,348 13 portuguese 3,892 0:6 7,057 7 ruthenian 2,356 0-3 27,907 3 scandinavian . |! 40,978 5:8 52,037 5 scotch ae 61,32 8:7 24,612 2 spanish. ; 3,664 o-5 5,837 900 united states by race, for the most important groups for the years rgio and 1924. table vii. shows immigration of countries for the years i9gto and 1923. table vii. immigrant ahens, by country table vuii. 1924 igio country of last = . residence - er cent er cent number ot tol number al total austria . 7,505 i: 135,793 13 hungary . : 5,806 122,944 12 germany . : 75,091 21,207 2 greece ; ; 4,871 25,888 2 italy . . 56,246 215,537 21 russia ; 12,649 186,792 18 england . ; 24.466 46,706 5 ireland . . 17,11! 29,855 2 norway. ; 11,986 17,538 2 portugal . . 2,769 8,22 i sweden. 18,310 23,745 p. turkey in europe 1,481 18,405 2 turkey in asia 2,820 15,212 i british north america . 200,690 28- 56,555 mexico ; 89,336 12: 18,691 it will be observed that by 1924 there was a change in the racial composition of immigration as compared with roro. immigration from italy and eastern european stocks fell off; from austria, iungary, germany and russia it practically stopped during the war, but beginning with 1921, from germany assumed greater proportion. immigration from the northern border, of both english and french canadians, and from mexico greatly increased. europe was the chief source of immigration to the united states, furnishing 90°% of the total. until the world war, the percentage coming | from europe fell, however, to 60° in 1915, 50% in 10916, 45° ° in t9r7, 28% in hes and 17% in 1919. in 1920 it rose to 57°, and in 1924 to 51%. ‘the proportion of females among the immigrant aliens in 1924 was 44%, as compared with 33% in the years rg10-4. such increase presumably makes for the stability of the immigrant population. in 1917 a literacy test was imposed upon immigrants, exemp- tions being made in certain cases. asa result only 15,094 illit- erate immigrants 16 years of age and over, or 4-4°,, were admitted in 1920. during the years 1908-17, 1,617,000 illiter- ate immigrants 14 years of age and over were admitted. un- doubtedly the new restriction should show in the course of the decade 1920-30 a marked effect upon the degrec of illiteracy in the united states. by the immigration act passed in 1921 and subsequent legislation, the number of immigrants admitted from any one country in the year july 1, 1921, to june 20 1922, was restricted to definite quotas of the persons of that nationality resident in the united states at an earlicr period. only 358,000 immigrants, were eligible for admittance during 1921-2. the united kingdom was limited to 77,200; germany to 68,000; italy to 42,000; russia to 34,200 and poland toa 25,800. urban and rural population.—the tendency of the popula- tion to concentrate in towns and cities continued unabated. in 1g10 the percentage of the population living in urban territory (that is, in cities and other incorporated places of 2,500 inhabi- tants or more, and in towns of that size in massachusetts, new hampshire and rhode island) was 46:3 %, andin 1920it was 51-4. table viii. shows the population of cities having 50,000 in- habitants or more in 1920 with comparison for 1910. in the final column estimates of population in 1925 of most of the cities, as made by the bureau of the census, are given. the cities with increases of over 100° were detroit, mich., due to the development of the automobile industry; akron, o., the home of several large rubber factories which manufacture tires for automobiles; flint, mich., also an automobile city; tulsa, okla., a centre of oil activity; gary, ind., a city recently built up by the u.s. steel corp.; bethlehem, pa., also a steel city; knoxville, tenn.; and long beach, california. with the exception of bethlehem, no one of these cities is in the east. new york, n. y. chicago, fil. philadelphia, pa. . detroit, mich. clev eland, se st. louis, mo. boston, mass. baltimore, md. pittsburgh, pa. los angeles, cal. buffalo, n. y. san francisco, cal. milwaukee, wi is. washington, d0: newark, n. j cincinnatt, o, new orleans, la. . minneapolis, minn. kansas city, mo. seattle, w ash. indianapolis, ind. jersey city, n. j. rochester, n.y. portland, ore. denver, colo. toledo, o. .. providence, r.i. columbus, o.. louisville, ky. st. paul, minn. oakland, cal. akron, o. atlanta, ga. ‘ omaha, neb. worcester, mass. . birmingham, ala. syracuse, n. y. richmond, va. new haven, conn. memphis, tenn. san antonto, tex. dallas, tex. dayton, ohio. bridgeport, conn. hfouston, tex. hartford, conn. scranton, pa. grand rapids, mich. paterson, youngstown, o. springfield, mass. des moines, la. new bedford, mass. fall river, mass. . trenton, n. j. nashville, tenn. salt lake city, utah camden, n. j norfolk, va. . albany, n.y. lowell, mass. wilmington, del. . cambridge, mass. reading, pa. . : fort worth, tex. . spokane, wash. kansas city, kan. yonkers, n. ¥. lynn, mass. duluth, minn. 1920 1910 5,620,048|4, 766,883 2,701,705|2, 185,283 1,823,779|1,549,008 993,678) 465,766 796,841] 560,663 772,897| 687,029 748,060] 670,585 733,826) 558,485 588,343) 533,905 576,673) 319,198 506,775] 423,715 506,676} 416,942 457,147] 373,857 437,571] 331,069 414,524] 347,469 401,247/ 363,591 387,219} 339,075 380,582| 301,408 324,f10) 248,381 315,312] 237,194 314,194) 233,650 298,103] 267,779 295,750] 218,149 258,288] 207,214 256,491} 213,381 243,164] 168,497 237,595| 224,326 237,030] 81,511 234,891] 223,928 234,698) 214,744 216,261] 150,174 208,435/ 69,067 200,616] 154,839 191,601] 124,096 179,754] 145,986 173,006) 132,685 i71,717)| 137,249 171,667] 127,625 162,537| 133,605 162,351} 131,105 161,379] 96,614 158,976] 92,104 152,559| 116,577 143,555) 102,054 138,276) 78,800 138,036, 98,915 137,783] 129,867 137,634, 112,571 135,875} 125,600] . 132,358] 79,066 129,614] 88,926 126,468} 86,368 121,217} 96,652 120,485} 119,295 119,289| 96,815 148,342| 110,364 118,elo}| 92,777 116,309} 94,538 115,777| 67,452 113,344, 100,253 112,759} 106,294 110,168} 87,411 109,694| 104,839 107,784] 96,071 106,482] 73,312 104,437] 104,402 101,177| 82,331 100,176] 79,803 99,148} 89,336 98,917! 78,466] 2 cities with 50,000 inhabitants or more ss ——— re a rr —— — per- cent- 1925 age in-| estimate crease 179 23-6 2,995,230 17-7 |1,979,364 113°3 |1,242,044 42-1 | 936,485 12-5 | 821,543 11-6 | 781,529 314] 796,296 10-2 | 631,563 80°7 sa 19°6| 538,016 21°5 |} 557,530 22: 509,192 32°2 | 497,906 i9°3 | 452,513 io-4 | 409,333 42 | 414,493 26°3 | 425,435 30°6 | 367,481 34°5 358,819 ii-3|] 315,280 35°6 | 316,786 23°6) 282,383 20°2| 280,911 44°3 | 287,380 5-9 | 267,918 30°6 | 279,836 4°9 | 259,259 9°3 | 246,001 44°90 } 253,700 201-8 re 29-6 ss 54°4| 211,768 23-1 | 192,242 34°38) 205,670 25-1 | 182,003 34°5 | 186,403 21-7 | 178,927 23°38] 174,533 67:'0| 198,069 726] 194,450 39°9 | 172,942 40°7 - 75°5| 164,954 39°6 | 160,197 6-1] 142,266 22°3 | 153,698 8-2] 141,695 67°4 az 45°8| 142,224 46-4 7 25°74) 120,494 1:0] 129,662 23°2 | 132,020 7:2); 136,220 27°3| 130,948 23°70) 128,642 71°6 _ i3‘i | 117,830 6-1 | 410,542 26:0} 122,049 4-6 | $20,053 12-2} 112,707 45°2| 154,847 sia 108,897 22-9 sd 25°5 | 113,647 11-0 | 103,147 26:1 | tlo,s02 aes a a a a a a table viil—continued 1910 united states per- cent- age in- crease ee a) tacoma, wash. elizabeth, n. j. lawrence, mass. utica, n.y. . erie, pa. somerville, mass. . flint, mich. jacksonv ille, fla. . waterbury, conn. oklahoma city, okla. schenectady, n. y. canton, o. . fort wayne, ind. evansville, ind. savannah, ga. manchester, n. h. st. joseph, mo. knoxville, tenn. el paso, tex. | bayonne, n. j. peoria, ill. ilarrisburg, pa. san diego, cal, wilkesbarre, pa. allentown, pa. wichita, kan. tulsa, okla. troy, n. y. sioux city, las. south bend, ind. portland, me. iloboken, n. j. . charleston, s.c. . johnstown, pa. _. binghamton, n. y. east st. louis, iil. brockton, mass. terre ilaute, ind. sacramento, cal. rockford, il. little rock, ark. . pawtucket, r. 1. passaic, n. j. saginaw, mich. springfield, o. mobile, ala. . altoona, pa. . holyoke, mass. new britain, conn. springfield, ii]. racine, wis. . chester, pa. : chattanooga, tenn. lansing, mich. covington, ky. davenport, ia. ; wheeling, w. va... berkeley, cal. long beach, cal. . gary, ind. lincoln, neb. portsmouth, va. iilaverhill, mass. lancaster, pa. macon, ga. augusta, ga. tampa, fla, roanoke, va. niagara falls, n.y. east orange, int |: atlantic city, n. j. bethlehem, pa. huntington, w.va. ‘topeka, kan. 93:372 93,091 91,599 91,558 91,715 91,295 88,723 7,091 86,549 85,264 83,252 78,384 771939 77,818 77,560 76,754 76,121 75:97 74,683 73,333 73;502 72217 72,075 72,013 71,227 70,983 69,272 68,166 67,957 67,327 66,800 66,767 66,254 66,083 65,908 65,651 65,142 64,248 63,841 61,903 60,840 60,777 60,331 60,203 59,316 59,183 58,593 55, o30 57,895 57,327 $7,121 56,727 56,208 56,036 55:593 §5:378 54,948 54,387 3,884 53,150 52,995 2,548 51,608 50,842 50,760 90,710 50,707 50,358 50,177 50,022 57,699] . falal 64,205 a 217 ate 69,647 65,064 70,063 77,403 36,346 39,279 55545 66,950 64,186 39,578 67,105 31,913 2,450 18,182 76,813 47,828 53,684 58,57 70,324 58,333 55,482 48,443 58,547 56,87 8 58,15 44.696 45,401 45,941 51,622 54;773 50,510 46,921 51,521 52,127 571730 43,916 51,678 38,002 38,537 44,604 31,229 531270 43,028 41,641 40,434 17,809 16,802 43.973 33,190 44,115 47,227 — 40-665 41,040 37,782 34,874 39,445 34:371 46,150 12,837 31,161 43,684 | nnwst bw ff nul te twin com] o cnmon = — mt moaoeww cor~i+ o = to go fa low fs oc mm cho vv daa 1 2 at seong oo mo ow’uew none adoh~) naas 6h wd heaton £¢ ein me? ee ow to bo he de wwnh he n an wm ww no spam ad ocw rw oh cin ae nig wo no no —_ owo mnt oad wu anas® yh — fen a 1925 estimate 104,455 95,136 101,604 99,206 130,316 95,450 2,786 106,260 97,846 93.601 93,134 83,097 78,342 95,464 104,929 88,767 81,564 83,522 106,047 77,044 92,15! 124,47 72,223 80,091 791333 68,166 73,135 71,475 71,915 715423 65,731 71,071 72,260 76,462 74,216 69,760 68,979 2,100 68,725 65,955 66,148 60,892 68,039 63,923 67,077 68,507 66,575 79,7353 58,309 66,209 91,182 76,870 60,941 59,029 49,084 56,505 58,237 55,245 94,743 53,208 57,033 59,967 53,287 62,828 63,485 55,411 ee oan a a a rr rr rr qoi nearly one-fourth of the gain in the total population was due to the growth of the r2 largest cities, which in 1920 all had more than 500,000 inhabitants each. in roro there were only eight cities with a population of 500,000 or over, and in that year 12°5% or one-eighth of the total population lived in cities of this size; in 1920 the proportion was 15-5%. in 1910 there were 42 cities with a population between 100,000 and 500,000; in 1920 there were 56. (see urbanisation.) occupations.—the proportion of the population engaged in gainful occupations was recorded as slightly less in 1920 than in 1gro, declining from 41-5% to 39:4°. this decline was attributed to the forwarding of the census date from april 15 ig10, to jan. 1 1920, when a considerable number usually engaged in agricultural and building industries were idle. table ix. classifies those engaged in industry according to the principal division of occupations. no ne industrial occupations number per cent occupation 1920 1910 i920| igio males:— agriculture, forestry and animal husbandry 9,869,030/10,851,581] 29:8] 36-1 extraction of minerals 1,087,359| 964,075) 3:3 3°2 manufacturing and mechan- ical industries 10,888,183} 8,808,161) 32-9] 29:3 transportation 2,850,528] 2,530,795 8-6 8:4 trade. 3,575,187| 3,146,582] 10°38] 10-4 public service ‘(not elsewhere classified) 748,666} 445,733 2:4 15 professional service . | 1,127,391} 959,470] 3:4 3°2 domestic and personal serv- ice ‘ 1,217,968] 1,241,338 3:7 4°i clerical occupations 1,700,425] 1,143,829 5-2 3°8 ail occupations (male) . (33,064,737/30,091,564} 100-0 | 100-0 females:— agriculture, forestry and animal husbandry 1,084,128] 1,807,501] 12-7] 22:4 extraction of mincrals 2,864 1,094 7 manufacturing and mechan- ical industries 1,930,341] 1,820,570] 22-6] 22-6 transportation 213,054} 106,625 2°5 1-3 trade 667,792} 468,088] 7:8 5°3 public service \"(not elsewhere classified) 21,794 13,558} 0-2 0-2 professional service 1,016,498] 733,891/ i1-9 g°i domestic and personal serv- ice 2,186,924] 2,531,221] 25-6] 31-3 clerical occupations 1,426,116{ 593,224] 16-7 7°3 8,075,772 8,549,511 alf occupations (female) table ix. does not include all those engaged in economic services. many children and wives work for their parents or husbands, and as technically they do not receive wages they are not recorded as engaged in gainful occupations, although in reality they contribute to the household economy. if these be included, approximately two-thirds of the population was en- giged in some degree in creating wealth or in services which might be valued in economic terms. nearly one-third of all the workers were engaged in agricultural and allied industries. education.—in 1922 there were 23,239, 227 children enrolled in the public schools, constituting over 75% of the population from five to 18 years of age. there were ee teachers in the public schools, or one to every 32 pupils. of the teachers 16% were males. the total expenditure for education in elementary and secondary schools was $1,580,671,296, or about $68 per pupil. the above enrolment of pupils includes 2,229,000 attend- ing public high schools. in addition there were 186,641 pupils in ptivate high schools and academies. there were 350 public and private normal schools with an enrolment of 217,000. universities, colleges and professional schools numbered 780 in 1922, having 67,649 students of preparatory grade, 415,806 of collegiate grade, 23,016 graduate students and 75,466 stu- dents in professional schools. professional schools numbered 418, as follows: theology, 116, with 8,566 students; law, 110, go2 with 27,017 students; medicine, 74, with 16,747 students; den- tistry, 43, with 11,773 students; pharmacy, 59, with 8,202 stu- dents; and veterinary medicine, 16, with 716 students. (sce epucation, united states.) the statistics of illiteracy for 1920 showed a diminution com- pared with those for r91r0. the census bureau classifies as illiterate any person 10 years of age or over who is unable to write in any language, regardless of ability to read. illiterates in 1920 numbered 4,931,905 ,or 6% of the population at least io years of age, as compared with 7-7%% in ro10. the propor- tion of illiteracy for the individual states in 1920 ranged from 1-1 % in iowa to 21-9% for louisiana. illiteracy is very marked in those states in which the coloured population or the foreign- born population is relatively large. there has been a marked decrease in illiteracy of negroes, declining from 44-5°% in 19000 to 30°-4°% in 1910 and 22-9°% in 1920. of the native whites of native parentage only 2-5°% in 1920 were illiterate. births and deaths—in 1915 the census bureau began the annual analysis and publication of birth statistics based upon data obtained from state registration records. in 1923 the birth registration area covered nearly three-fourths (72:2°%) of the total population. between 1915 and 1924 the birth-rate de- clined from 25-1 to 22-5 per 1,000. the ratio of male to female births since 1915 was practically constant; in 1915 it was 1,055 males to 1,000 females, and in 1921 1,057 to 1,000. the fecun- dity of foreign-born mothers was much greater than that of native mothers. for example, in connecticut, in 1919, although the white married women of foreign birth, age 15 to 42, consti- tuted only 46° of the total population of white married women of that age group, they gave birth to 57° of the children. in massachusetts 49% of foreign-born mothers gave birth to 53% of the children; and in new york 43°% of foreign-born mothers gave birth to 49% of the children. the first and second children formed 50% of all children born to native white mothers, while only 34% born to foreign-born mothers were first and second children. the registration area for mortality statistics covers 90° of the population. between 1900 and 1922 the death-rate varied from a minimum of 11-6 per 1,000 in 1921 to 18-1 per 1,000 in 1918. this latter high rate was duc largely to a great influenza pandemic. the rate of infant mortality (the number of deaths of infants under one year of age per 1,000 born alive) for the reg- istration arca in 1923 was 81 for the white population; for the negro population 143; and for the total population, 86. a fifth nation-wide compilation of statistics of marriage and divorce was made by the bureau of census, covering the year 1923. there were 1,224,373 marriages, or 11:1 per 1,000 of the population. in the northern states, the rate was lower, while in southern groups in some instances it exceeded 13. there were 165,226 divorces. the statistics were not analysed to show ratios of divorce to marriage, but only the ratios to population. for the whole country the ratio of divorces was 149 per 100,000 pop- ulation. in new england the ratio was 1to4, middle atlantic states, 59, west south central states (arkansas, louisiana, texas and oklahoma), 250, and pacific states, 260. of the divorces 32% were granted to the husband and 68°, to the wife. bibliography.—relating to the fourteenth census of the united states, 1920, are the following volumes: j. population, number and distribution of inhabitanis; 11. population, general report and analytical tables; i. population, composition and characteristics by sfates; iv. population, occupations. the clata for the census of 1910 are graphically represented in the statistical atias of the united states 1914. important volumes on special topics have been recently published by the bureau of the census: negro population 1790-1915 (1918); indian population in the united states and alaska, 1910 (1915); religious bodies, 7976: part 1., summary and general tables (1919); part ei., separate denominations (1919); insane and feeble- minded in institutions roto (1914); benevolent institutions, 7910 (1913); deaf mutes in the united states, 1910 (1918); paupers in almshouses, r9r0 (1915); prisoners and juvenile delinquents, ioz0 (1918); statistical directory of state institutions for defective, de- pendent and detinguent classes (1919); increase of population in the united states 1910-1020 (1922). the bureau of the census con- tinues the annual compilation on mortality statistics, begun in igoo. as the registration area is constantly enlarged, these latter statistics united states are of increasing value. the most serviceable single source-book is the annual volume. statistical abstract of the united states, first issued in 1878, published by the dept. of commerce. this assembles data on areca and population, including census returns, immigration and vital statistics. most of the statistics are derived from official publications, but when they are wanting, reliance is placed upon private statistical agencies. (d. r. d.) v. communications raitlways.—the development of united states railways from i9ro to 1924, in mileage, equipment, employees, public service and finance, may be summarised in a comparison of the signifi- cant statistical units. in miles of railway the total in 1910 was 240,831. in 1924 the total was 258,238. practically all of the increase was in rg1r to rgr4. in 1914 the total was. 256,547. the additions since 1914 have been offset in substantial part by the miles of branch lines abandoned. in total track miles the increase was greater in degree—351,767 in roro and 415,027 in 1924. the ratio of total tracks to road miles was 1-46 in 1910 and 1-61 in 1924. the number of locomotives was 60,019 in 1910 and 69,486 in 1924. the increase in number, however, does not fully indicate the increase in capacity. the average tractive power was 27,282 ib. in rgro and 39,891 ib. in 1924. passenger train cars increased in number from 47,179 to 57,451. the number of freight cars grew from 2,148,478 to 2,411,627, with an average capacity of 35°9 tons in roro and 44-3 tons in 1924. the net capitalisation in 1910 was about 14-4 thousand million dollars, of which 44°64 was in capital stock and 54% in funded debt. in 1924 the net capitalisation was 18-2 thousand million, of which 40° was in capital stock and 60° in funded debt. as it was impracticable from 1914 to 1923 to finance through the sale of stock, nearly all of the increases in railway capitalisation were in funded debt. the net capitalisation per mile of road was $62,657 in 1910 and $75,332 in 1924. the total dividend payments actually decreased. in to10 they were $405,771,416. in 1924, with an increase of 16° in total stock, they were $382,879,890. theaverage dividend rate on all stock in 1910 was 5%) im 1924 il was 4-12%. the financial results of operation were as follows: operating revenues increased from 2,812 million dollars to 6,045 millions. operaling expenses advanced from 1,882 millions to 4,609 millions. taxes grew from 98 millions to 347 millions, and the net railway operating income (the amount left to pay interest and other fixed charges and dividends) was 805 millions in 1910 and 984 millions in 1924. in other words, the increase of 115% in revenues was accompanied by increases of 145° in expenses and 254° 6 in taxes, leaving an increase of but 12% in net income as the return on the 26° 6 increase in total invested capital. these figures indicate that the net earning power of railways suffered substantial impairment during the 14-year period. the transportation product may be measured in passengers and tons carried one mile. the passenger miles of 1910 were 32.3 millions; in 1924 they were 36.4 millions. beginning with 1923 railway passenger traffic, notably in short-distance riders, has shown a tendency to decrease, principally because of motor- bus competition and the greater use of the automobile by individuals. the revenue ton-miles of 1910 were 255 thousany millions; in 1924 they were 392 thousand millions. the effect of motor-truck competition for short hauls, while substantial in absolute figures, was not serious relatively, as such losses were small in comparison with the gains in other freight traffic. expressed in averages which take account of increased road miles the passenger miles per mile of railway were 138,169 in 1910 and 153,618 in 1924. ton-miles per mile of railway were 1,071,086 in roto and 1,518,556 in 1924. the substantial increases in rates in 1918 and 1920 are reflected in the revenue averages. the average revenue per passenger mile in r9ro was 1-938 cents; in 1924 1t was 2-985 cents. the average revenue per ton mile in 1910 was -753 cents; in 1924 it was 1-132 cents. that these increases were not equal in degree to the higher operating costs is shown by the decline in net earnings. : united states the number of employces in 1910 was 1,669,420 and their compensation was $1,143,725,306, an average of $685 per employee. this average may not be entirely accurate as the 19010 method of counting employees was somewhat defective. in 1924 the number of employees was 1,751,362 and their compensation was $2,825,775,181, an average of $1,613 per employee. it will be noted that the increases of 13% in passenger miles and 54% in ton-miles were accomplished with but 5° increase in the number of ee a but the aggregate compensation shows an increase of 147% and the average per employee was advanced 136% _a striking indication of the gain in operating efficiency is shown in the relation between train miles and passenger miles and ton-miles. the increase of 1 3% in passenger miles was pecos with but 5° increase in passenger train miles and the 54% increase in ton-miles was produced with actually less freight train miles. this performance was the result of an in- crease in the freight train load from 380 revenue tons in 1910 to 634 revenue tons in 1924. the heavier train load was made possible by locomotives of greater capacity, larger cars, stronger roadway structures and improved technique. the 1887 act to regulate commerce was intended primarily to correct abuse of power on the part of railway managers. the interstate commerce commission, as a federal agency acting for congress, was given wide powers over rates, finance and account- ing. while the commission’s early accomplishments were sub- stantial the experience during the first 15 years demonstrated that the law was defective as the commission was without sufficient power to effect all of the needed reforms. the 1906 and 1t910 amendments to the act corrected certain outstanding deficiencies by giving the commission powcr not only to find that a rate was unreasonable but also to prescribe the reasonable rate, and to suspend a rate propesed by a carrier. broadly speaking, the commission since 1910 has had complete control over interstate rates, and the tendency has been for that federal body to supersede the state commissions in their regula- tion of intrastate rates. while formerly the burden of proof had been on the commission to prove that a rate was unreasonable, the burden of proof of reasonableness was shifted to the carricrs. tor a series of years prior to r91to the tendency of rates had been downward. the stcady growth in traffic and the improve- ments in facilities, equipment and opcrating methods, had enabled the carriers to absorb rising costs, reduce transportation charges and earn sufficient in net income to yield reasonable returns on capitalisation, finance extensions and improvements, and maintain the surplus essential to sound credit. from the beginning of the decade 1910-20, however, the greater costs of materials and the higher wage rates incident to changed economic conditions began adversely to effect net income, and the carricrs attempted to prevent further losses by increasing rates. in 1910 the railways collectively appealed to the commission for authority to advance freight rates, but the commission in denying the application held that the anticipated increase in traffic and a higher degree of operating efficiency should enable the carriers to earn a fair return. in 1914, 1915 and 1917, with continuing impairment of net earnings, further efforts were made by the carriers to convince the commission that ad- vances in rates were justificd. these efforts met with but par- tial success, as the authorised increases were small in extent and limited territorially. viewed in retrospect it appears that the commission was unduly optimistic in assuming that the growth in tratlic and greater economics in operation would avert the threatened im- pairment in railway net carning power and credit. the railway financial situation in 1915 was so serious that 42,000 mi. of railway, one-sixth of the total, were in the hands of receivers. railway extensions practically ceased and additions and better- ments to facilitics and equipment were confined in the main to the few strong companies. a substantial increase in traffic in 1916, as a result of war orders from the allies, and the consequent increase in railway revenues, partially relieved the financial distress. in april 1917, 903 the united states entered the war, and the demands for railway transportation were further increased. the additional load over- taxed railway facilities and serious congestion resulted in the late fall of that year. while that congestion was due in large measure to conflict in priority rights for movement of war materials, it may be attributed in greater part to the slowing up in railway development during the preceding decade when the carriers were endeavouring to convince the commission that financial relief in advanced rates was essential to the continuation of adequate transportation service. from jan. 1 1918, until march 1 1920, the railways of the united states were operated for the government by a director- general of railroads with almost unlimited powers to administer the railway as one unified system during the crisis. as rental for the railway properties the government agreed to pay yearly to each company a sum equal to its average annual net income curing the three years ended june 30 1917, and to return the railways to their owners, within 21 months after the signing of treaties of peace, in physical condition equal to that when taken over by the government or to compensate the owners for undermaintenance. under unified operation and autocratic control by the direc- tor-general the tangle of priority orders was overcome and the railways functioned effectively as a branch of the government. the congestion was relieved early in 1918 and thereafter there was no delay to essential traffic—the movement of troops, mili- tary and naval supplies, and essential commodities. civilian travel was discouraged and the movement of non-essential freight was curtailed. the director-general was given hearty support both by employees and the general public. the pas- senger miles, including troop movements, and the ton-miles of 1918, with but minor additions to facilities and equipment, were greater than in any previous year. directly after the conclusion of the war an effort was made by those favourably inclined toward the nationalisation of railways to continue the experiment of federal control indefinitely, but the proposal met with pronounced public disapproval. as an emer- gency measure for war purposes it was successful, even though costly, but as a permanent policy it had little support. the railways were returned to their owners on march 1 1920. one of the first major acts of the director-general was to grant substantial wage increases to employees. subsequently during the period of federal control other wage advances were made so that at the end of federal control the average wages were approximately double those of 1917. besides these ad- vances important concessions in national standardised agree- ments were made to the labour organisations, and those organi- sations emerged from the war period with very much greater strength than before. the director-general’s — act of major importance was in june 1918, when he arbitrarily advanced freight rates 25% and passenger rates about 20%. the rate increases, however, were not sulficient to overcome the higher wages and other increased operating costs and the government failed to earn the amounts paid as rentals. the deficit of 1918 was augmented in 1919, when there was a sharp recession in business and railway traffic. the total deficit from operation, plus the cost of administration and claims paid for undermaintenance and other causes, was in excess of $1,600,000,000, or over $2,000,000 per day. <a large part of that deficit, however, could have been avoided if the director-general had exercised his authority to order a second advance in rates in rgiy. such action would have been justified by higher costs but the administration chose to incur a larger deficit rather than atford stimulus for further advances in commodity prices. inasmuch as the director-general was concerned only with the results of operation as a whole, and was not interested in the individual units by themselves, competition was eliminated and there was a substantial degree of unification in joint use of facilities and equipment and much short-cutting in accounting and pooling of revenues and expenses. traffic was routed over the lines which were best fitted to handle it, regardless of former traflic arrangements, and the right of shippers to designate 904 routing was suspended. all of these things added to the aggre- gate capacity of the unified system in the emergency and some of the expedients resulted in economies, but the elimination of competition was so distasteful to the public that practically all of the unification innovations were abandoned when private operation was resumed. the legislation under which pre-war railway control was restored was known as the transportation act of 1920. it pro- vided for a transition period of six months in which the gov- ernment continued its war-time guarantee while the companies were reorganising and the interstate commerce commission was revising rates to take account of higher operating costs. the transportation act contained several important amend- ments to the act to regulate commerce. continuing and broad- ening all of the powers vested in the commission by the original act and its several amendments, it contained a new rule of rate- making. all previous laws, designed to protect the public, were essentially corrective and punitive; they provided no protection to the carriers against regulation which might be unduly injuri- ous. the 1920 law, however, contained the mandate that in addition to the major duties of insuring reasonable rates, preventing undue discrimination in rates or service, and super- vising operation, accounting and finance, the commission should establish the rate scales as a whole, so that the carriers as a whole in large territorial groups, should be able, under honest and efficient operation, to earn “fas nearly as may be” a fair return on the value of the properties as a whole in each group. the fair return for two years was set at a maximum of 6%, the commission subsequently to use its discretion in defining the rate. in 1922 the commission set it at 52%. this principle, however, was to apply to the railways as a whole in territorial groups. it did not apply to the carriers individually. nor was it a guarantee either to the individual carrier or to the railways as a whole. as a matter of fact, even though the rates in aug. 1920, were advanced from 25% to 40% with the purpose of bringing a 6% return on value, the decline in traffic in 1921 upset calculations and the return was but 2:9 % on the carriers’ book value, including materials and working cash, in 1922, the return was 3°6%; in 1923, 4°4%; in 1924, 4°3%; and about 4-9% in 1925. from the viewpoint of the carriers the rate-making mandate of the 1920 law has been disappointing. in no year since the law was enacted, up to and including 1925, did the return as a whole equal the 53% standard. for the shortage under the fair return the carriers have no recourse, but another section of the law known as the “ recap- ture’ clause, requires the individual carriers who earn in excess of 6% on value to turn over one-half of the excess to the gov- ernment for a revolving fund from which the government may make loans to the weaker carriers. in 1924 and 1925 substan- tial sums were thus recaptured from the few prosperous roads which earned in excess of 6% on value, but the very much greater number of companies which earned less than the fair return were without remedy. the principle of recapture was a temporary expedient to operate until a permanent remedy could be had in the principle of consolidation. the 1920 law recognised the fact that under competitive conditions a scale of rates which would yield a fair return to the group would give more than a fair return to the strong and less than a fair return to the weak carriers in that group. rates on competitive traffic necessarily are uniform. to enable the commission to establish such uniform rates so that all of the carriers would earn substantially the same rate of return, the law required the commission to make a study and to formulate and publish a tentative plan, to be followed by a final plan, under which all railways would be consolidated into a small number of large systems of fairly equal financial strength and earning power. the commission, however, was not given power to enforce its final recommendations. in defining the principles which should govern consolidation the law provided that competition should be continued as far as practicable, that existing routes and channels of traffic should be maintained as fully as possible and that the capitalisation of a new company united states should not exceed the combined value of its consolidated prop- erties. in aug. 1921 the commission published its tentative plan of groupings, and hearings were held throughout the following two years. there was much opposition to the plan both in principle and detail and practically nothing definite had been done up to june 1926, except the authorisation of a few volun- tary combinations. the frequent reference to value as a rate-making base calls for a word of explanation. the value of a railway property has always been a controversial subject because of the several cases of “stock watering” or fictitious inflation of capitalisation in earlier years. in 1913 the valuation act directed the interstate commerce commission to make a physica] inventory of each railway property and to ascertain its value for rate-making purposes. three alternative bases were to be used: (a) original cost to date; (b) cost of reproduction new; and (c) cost of repro- duction new less depreciation. the commission has concentrated iis work on the cost of reproduction new less depreciation, appraising land on the values of adjacent properties. in addition to land values, and the depreciated reproduction cost of every physical unit, the commission was instructed to take into account “other values and clements of value, if any.”” presumably these were meant to include such things as going value and an allow- ance for material, inventory and working cash. contrary to the expectations of the sponsors of the 1913 act the valuations, as determined up to 1926, indicate very little ‘‘watered stock.”? on the contrary the indications are that when the work is completed in 1927 or 1928 the aggregate so found will likely exceed the book value and the capitalisation of the carriers. in the meantime the commission, in exercising its authority over rates and in recapturing net income, has used tentative figures, and in fixing individual rates, such as those on agricultural products, has been influenced more by other economic factors than fair return on value. aw: jee water trans port.—in 1916 the bureau of census made a study of transportation by water. according to this report the tonnage employed on the great lakes and the st. lawrence river in 1916 was 2,737,491 tons, as compared with 2,392,863 tons in 1906, a gain of 14°4%. the freight carried was 125,384,000 tons, as against 75,610,000 tons in 1906, a gain of 65:8%. of this, 7 2 .9000,000 tons was iron-ore, 30,000,000 tons coal and 6,000,000 tons grain. the freight handled by the lakes fleet represented nearly one-half (48-6%) of the water-borne freight shipments reported for the united states as a whole in 1916, as against 42:°6% in r906. tonnage on the mississippi river and tribu- taries declined greatly, from 4,412,000 tons in 1906 to 1,621,000 tons in 1916. vessels operating on canals declined both in num- ber and in tonnage. in 1906 the number of such vessels was 3,140, with a tonnage of 259,491; in 1916 the number was 2,040, with a tonnage of 196,426. there has been a decline in the tonnage in the new york state canals. on the erie canal, the yearly average for the period 1906-10 was 2,206,595 tons; 1n 1920 it was 891,221 tons; and in 1923, 1,626,062 tons. the freight carried on the sault ste. marie canal, connecting lakes superior and huron, fluctuated during the decade 1910-9, between 53,477,000 tons in 1911 and 91,888,000 tons in 1916; in 1923 it was 01,380,000 tons. commercial trafic through the panama canal has steadily increased since its opening in 1915. in 1924, 26,995,000 cargo tons were carried by 5,230 vessels. ship ping.—owing to the great activity in shipbuilding during the world war the tonnage of the american merchant marine showed a marked increase between 1g1o0 and 1921 rising from 7,508,000 tons in 1g10 to 18,282,000 tons in 1921; 1924 showed a slight decrease. nearly one-seventh, or 2,693,000 tons in the latter year, was employed on the great lakes. the tonnage on western rivers continued to decline, being only 138,000 in 1923 but rose to 164,000 in rg24. sailing vessels decreased both in number and tonnage, and steam vessels declined in number from 12,452 to 7,736, but increased in size. the average tonnage of a steam vessel in 1910 was 394 tons; and in 1923, 1,914 tons. dur- ing the five years, 1911-5, the tonnage of new steam vessels united states literature—universal language 905 built was 1,003,345 tons; in the five years, 1920-4, 6,714,678 tons, or more than six times as much. new construction reached its peak in 1920, showing 3,660,023 tons; in 1924 it was only 145,493 tons. american shipping is engaged in two distinct branches of trade: coast wise trade between domestic points, and foreign trade. the tonnage in foreign trade increased from 1,019,165 in 1913 to 11,077,398 in 1921, declining to 8,794,000 in 1924. coasting tonnage which in 1913 amounted to 6,817,000 tons rose to 8,911,000 tons in 1924. it is estimated that the new tonnage, constructed under the emergency of the war, repre- sented an expenditure of $3,000,000,000, a sum greater than the book value of all the world’s merchant shipping in 1914, aggre- gating 49,000,000 tons. a notable change has taken place in the nationality of shipping entering and clearing from american seaports. until 1916 the tonnage of vessels sailing under foreign flags for many years was approximately three times as great as that under u.s. registry; in 1920 u.s. tonnage entered (32,119,103) slightly exceeded foreign tonnage (31,984,932). this supremacy was soon lost, the respective figures for 1924 being 29,628,000 and 38,664,000 tons. the total tonnage of vessels entering at all ports from foreign countries increased from 40,235,800 tons in 1910 to 68,292,000 tons in 1924, and the tonnage cleared, from 39,705,858 tons to 68,910,000 tons. the tonnage of british shipping entering at seaports of the united states averaged in the five-year period 1qio-4, 17,900,596; in 1924 the tonnage was approximately the same, 17,628,290. german tonnage in the earlier period averaged 4,362,019; and in 1924, 1,338,706. mails, telephone and telegraph—postal statistics show a slight extension of post routes, exclusive of rural delivery routes, from 447,998 m. in 1910 to 467,896 m. in 1924; the number of city carriers from 28,715 to 43,829; the mileage of rural delivery service from 993,068 to 1,205,714; the number employed in railway mail service from 16,795 to 21,446; and the postal revenue from $224,000,000 to $573,000,000. the telephone was rapidly extended. in 1922 there were 37,265,958 m. of wire in this service, as compared with 20,248,326 m. in 1912. of this mileage, 30,600,000 in 1922 and 15,100,000 in 1912 were in the bell system. the number of daily exchange messages of the bell system was 21-7 millions in 1910 and 36-8 millions in 1922; daily toll messages increased from 602,000 to 1,523,000. the number of employees of all systems in 1922 was 312,015. the telegraph systems have made but little extension in the past 20 years. in 1902 there were 237,990 m. of pole line, and 252,901 in 1922. the number of messages sent rose from 91.6 millions in 1g02 to 181-5 millions in 1922; and the number of employees from 27,627 to 62,299. (see telegraph and telepiionf.) the automobile became an important factor in terminal trans- portation. motor-car registration increased fourteen times be- tween 1913 and 1924, numbering (not allowing for duplicate registration) in the latter year 17,591,981. this represents a motor-car for approximately one-seventh of the population. (sce motor vehicles.) bibliography.—important volumes on special topics have been published by the bureau of the census, including street and electric railways 1912 (1915); telephones and telegraphs 1912 (1915); trans- portation by water 1916 (1920). the interstate commerce com- mission issues an annual report, statistics of ratlways. shipping statistics are published in the annual report of the commissioner of navigation, the annual volume, statistical abstract of the united states, published by the dept. of commerce, assembles data on internal communication and transportation, merchant marine and shipping. dr ds) united states literature: see american literature. universal language (27.746).—the term international language (or il) denotes a second, or auxiliary, language for international use, not a universal language to displace national tongues. as the world grows smaller, international travel, com- merce, science, broadcasting, increasingly accentuate the neces- sity of some common tongue. suggested solutions of the problem fall under three classes: (1) the revival of a dead language, (2) the internationalisation of a national language, (3) the creation of a language ad hoe. latin and greck.—latin was the il of the middle ages. it still survives implicitly in the nomenclature of certain sciences, and in the liturgy of the roman church, but, as a committee of the british association found, it is impossible to give the dead bones life. even mediaeval latin is inadequate to express current ideas of modern life. the great difficulty of latin restricts its use to the cultured few, who least need an il. if the pronuncia- tion were settled, the grammar simplified, the vocabulary clari- fied and extended, it would be no longer latin, and would please the latinists least of all. the futility of refurbishing latin for modern uses is demonstrated by the failure of such magazines as phoenix, praeco latinus, vox urbis, invcenitus. no teaching methods will make the average working man into a fluent latin speaker. if latin is inadmissible, we can certainly rule out greek, sanscrit and other dead languages. nor does a proposal to utilise hypothetical aryan (lipskith, 1919) seem more practical. if a national language is to be universally recognised as inter- national, which shall it be? modern languages—english is widely taught, its use is extending; it has a rich vocabulary, a great literature, a simple grammar. but its accentuation and pronunciation are difficult, its idioms drive the foreigner to despair, its spelling is chaotic. even if agreement could be reached on phonetic spelling (and reformers are widely at variance), this would make written eng- lish more difficult for the average european, for whom the present spelling facilitates recognition of the words. french is spoken by many educated europeans, and still maintains a precarious hold in diplomacy. its lucidity is pro- verbial, but its spelling, pronunciation and grammar are 2a stumbling block, and it is intensely national in character. spanish, though easier, shows divergence as between euro- pean and american forms. the widely spoken russian and chinese offer insuperable difficulties. malay and the pidgins are so much simplified as to be totally inadequate. in any case it would be impracticable for an international body to adopt any one national language. a proposal to officialise spanish in the league of nations evoked a similar request from the italians. this solution is indeed not one solution, but many, mutually exclusive. the difficultics of any national language are too great. to force it on the world would tend to debase it and split it into dialects. patriotism and national jealousies are in the way. why should all other peoples sacrifice their national pride and prestige to suit the convenience of one? tur varrous proposals examined scientific languages.—there remains the creation of a suit- able language on scientific principles. of some 200 such schemes the vast majority are mere projects only. they may be roughly divided into (a) @ priori (philosophical, arbitrary), and (0) a postcriort (based on one or more existing languages). most early schemes were of the @ priori type alluded to by roget in his thesaurus. solresol based on the seven notes of the scale (1817), lingualumina (1875), blaia zimondal (1884), cabe aban (1887), zahlensprache (1901), are more recent ex- amples. such schemes are based on a classification of ideas translated into words bearing no relation to any other language. obviously they depend on the caprice of the inventor; though usable as codes they impose a great strain on the memory. one such scheme still advocated is ro, invented in 1904 by the rev. p. foster. it has some vocabularics, a monthly sheet rota and as literature the first chapter of st. john. it is, however, now generally agreed that the il must be a postcriort. unlike previous schemes, most post-esperanto schemes closely resemble esperanto and one another. consid- eration shows that an il should be international, easy for all, neutral, euphonious, phonetic, flexible, unambiguous, logical, regular, adaptable and tested by long-continued practical use on a large scale. esperanto.—esperanto, initiated in 1887 by dr. l. l. zam- enhof (1859-1917) is the only language which possesses all these characteristics. it is neutral and international in its elements, 906 universal logical and regular in construction, and as euphonious as italian and spanish, for which it is often mistaken. the grammar can be grasped in half an hour; every rule is without exception, the spelling is phonctic and the dictionary small. nevertheless, it has literary power, beauty, precision, flexibility and power of growth. in nearly 40 years of testing it has never been found wanting. there are some 4,000 esperanto books, original and trans- lated, including the bible; and the literature is rapidly growing; 95 magazines appear regularly. the league of nations has published a favourable memorandum (compiled from govern- ment reports) on the teaching of esperanto in the schools of the world. the paris chamber of commerce and the london county council teach esperanto in their commercial schools; the london chamber of commerce examines in esperanto. in 1925 the international telegraphic union officially recognised esperanto asa‘ clear language.”’ the british association in 1919 appointed a committee on il, which in 1924 definitely recommended es- peranto as its choice. twenty-seven european broadcasting stations were giving regular esperanto transmissions in 1925 and 16 international esperanto congresses have been held, attended by 4,000 members from all parts of the world. esperanto has long passed the stage of theory; it is in truth “ the living language of a living people.”’ esperantists, finding the language adequate, concentrate their energies on the organ- isation of linguistic intercourse, and look to use for the climina- tion of possible flaws. on a foundation they regard as sound they are rearing a superstructure of technical vocabularies with the co-operation of expert committees. the majority of il partisans and literature are esperantist. ido.—in 1907 two frenchmen, messrs. couturat and de beaufront, produced a modification of esperanto which they named simplified esperanto. owing to esperantist protests, the ‘‘linguo internaciona’”’ was renamed ido (an esperanto word meaning ollsprigg): the title was still under discussion in 1925. the idists claim that ido is esperanto rendered more scientific and natural; it has abolished accented ictters, correlatives, the compulsory accusative, the agreement of the adjective with the noun. the supposed chaos of esperanto derivation has been regularised by couturat’s rule of reversibility! the unchange- able fundamento of esperanto has been replaced by the principle of infinite perfectibility. these changes, it is claimed, are so self evidently improvements, that the whole world must fall into line, and recognise ido as the final solution of the problem the esperantists energetically rejected the proposed changes as, though superficially attractive, in the main unacceptable, being based on misconceptions, introducing objectionable irreg- ularities and complications, and destructive of the literary power and beauty of the language. in particular they opposed cou- turat’s principle of “ reversibility ” as a priort, arbitrary and con- trary to linguistic practice and instinct. the “ reforms ” were supported by the authority of a 1907 ‘“ delegation,”’ which the esperantists ridicule. esperanto and ido both admit all necessary international roots. the esperantist academy officialises new words, how- ever, only after extended trial in literature. the idists, occupied in perfecting their dictionary, have largely neglected literature. in this matter each may learn from the other. the history of ido has confirmed the faith of esperantists, though it has driven some to ultra-conservatism. ido at first changed with bewildering rapidity. it being impossible to prop- agate a language which changed in details every month, a tem- porary period of stability (to end | in 1926) was eventually i inaug- urated, during which further changes were to be held in reserve. notwithstanding this, the chief idist esta dr. pa talmey, advocates what he calls “ improved ido ” or “ ilo” lin word-building couturat demands seveestbiey: or two-way derivation; e.g., he holds that from a root like krox “ a crown,” one must not form “ to crown ” by the simple addition of the infinitive inflexion; of starting from the infinitive and ‘ ‘ subtracting \"’ the q suffix one should pass back to the idea of ‘‘ coronation \"’ and not ‘* crown.” | language “ arulo ” (auxiliara racionoza universala linguo), which is ido considerably reformed. time will show how far unity may be preserved by judicious yieldings in various directions. over 50 schemes have appeared of “ reformed” esperanto, ‘reformed ” ido or some compromise. it is easy for anyone with ambition and moderate intelligence to catch this morbus linguificus, and publish a slightly modified esperanto, over his own name. none of these projects, however, has had any success. prof. r. de saussure, believing that some minor features of esperanto handicap propaganda, proposes to eliminate them while preserving the essential qualities of the language. from 1907 onwards a stream of experimental projects and literature has issued from his language laboratory—antido i., antido it., lingvo kosmopolita, esperantido and finally, nov-esperanto (1925). his attitude of scientific detachment and _ research, however, has been widely misunderstood, and he remains a voice crying ue the wilderness. vola pik. apiik (see 28.178) was based 40° on english, but english arbitrarily altered almost out of recognition. born tn 1880 and at its height in 1888, it was practically dead in 1890. the grammar was ey ondertully. ingenious, but the vocabulary too arbitrary. despite the protests of the inventor, the volapiik academy decided to reform the language, but was immediately torn by dissensions. spelin, dil, dilpok, balla, orba, ‘tal, pan- kel and other stillborn schemes, corrected or exaggerated the defects of volapiik. neutral.—mr. w. rosenberger, a later director of the acad- emy, initiated reforms of volapiik which resulted in an entirely new language, idiom neutral (1898). the “ kadem beviiretik volapiika ” became the “ akademi de lingu internasional.” neutral, and especially a later form, reformed neutral (1907), represented the extreme swing of the pendulum to the a postertort side, being almost exclusively neo-latin, to this end sacrificing logic, beauty and simplicity. prof. hf. sweet, who in the eacy- clopedia britannica in 1911 (9.773) damned esperanto with very faint praise, wrote “‘ the most formidable rival of esperanto is unquestionably idiom neutral.” nevertheless, neutral died with rosenberger 3n 1918. interlingua.—tin 1908 the akademi passed under the director- ship of prof. g. peano, and is now the ‘‘ academia pro inter- lingua.” following henderson in lingua (1888) and latinesce (1901) and rosa in nov-latin (1890), prof. peano in 1903 pro- posed a systematic simplification of latin called latino sine fiexione (afterwards interlingua). he practically discards all grammar as unnecessary. interlingua is attractive to the clas- sical scholar; its appearance is not undignified. lacking specific tense-forms, it seems more suited to mathematical or philo- sophical exposition than to a narrative, lyric or dramatic stvle. one variant of interlingua is that by aldo lavagnini, who by grammatical additions has changed it through the various stages of interlingue and unilingue to monario (1925). a magazine in monario appeared in 1926. occidenial—mr. fe. de wahl, after experimenting with many systems, finally produced occidental, “‘ comprchensible at first sight to 10,000,000 educated europeaiis without preliminary study.’ to write or speak it is less easy than to read it, variety being dearly bought by the introduction of irregularities. other schemes.—josef weisbart, an ex-idist, brought out in 1909 a project unial, which in 1912 became europal, and in 1923 medial. this also “non sukcessit.” in 1925 appeared a new version, europan. <a magazine le bon europano is announced for 1927. europan claims to be a compromise be- tween jatinitae and germuanitac; in other words, between espe- ranto, ido, interlingua and occidental. details are still in the melting pot. sidni bond in to12 published a rather vague scheme omnez, superseded in 1913 by domni (afterwards op- tez). this also he has dropped, and is now at work on meso. romanal is a project by mr. a. michaux, who nevertheless remains an active esperantist. his aim is to show that an accept- able language may be constructed on a latin vocabulary like that of courtonne (neo-latine, 1885) derivation being based on esperanto as opposed to ido; in other words, a combination of universe: electromagnetic gravitational schemes 907 interlingua vocabulary, esperanto derivation and micheaux grammar. prof. a. l. guerard apparently regards romanal as near the ideal. a non-partisan body, the international auxiliary language association (525 west 120th street, new york city), was formed in 1923 to collect and distribute information, initiate experi- ments and awaken interest on all phases of the problem. this may lead to an authoritative decision by some competent inter- national body or group of governments powerful enough to carry the world with it. or, at worst, it may result merely in the creation of some new competing scheme. meantime it scems practical to sympathise with the resolu- tion passed by the world congress of international associations in brussels, 1920:— recognising the ever-growing need for an auxiliary language, the congress expresses the desire that every person who is convinced of such a necessity adhere to the important esperanto movement, de- ferring all improvements which may be deemed necessary until the moment when the language has been officially adopted by the governments, and to regard other schemes as interesting branches of experimental research. binniocrapny. l. couturat and l. leau, historre de la langue universelle (1903); les nonvelles langues internationales (1907); w. j. clark, tuternational language, past, present and future (1912): c. aymonier, /ssai sur la derivation comparee dans les langues natitr- elles et artificielles (central esperanto office, paris, 1921); a. l. guerard, a short itistory of the international language movement (1922). (mch) universe: electromagnetic-gravitational schemes.—finstcin’s theory of relativity (q.v.) unifies the me- chanical properties of the world with the geometrical properties. the experimental methods by which we find out mechanical quan- tities (mass, momentum, stress, etc.) are not essentially different in nature from those by which we find out geometrical magni- tudes (length and, for four-dimensional geometry, duration). einstein's theory combines them all in one scheme so that the mechanical quantities are not extraneous things residing 7x space-time—they are charactcristics of it. for example, mass and momentum are components of the curvature of space-time. but in the original theory the electromagnetic field stands aloof—in space but not of space. the discrimination seems unnatural. we desire to find a single continuum—cuall it space, aether, relation-structure, what you will—such that all quantities ascertained by experiment shall be measures of intrinsic proper- tics. there should be no discrimination between geometrical, mechanical and physical magnitudes, and no division into char- acteristics of the continuum and characteristics of “ fields ” disturbing the continuum. the maxwellian clectromagnetic field is described by a scalar potential ® and a vector potential f, g, h. these are combined in a four-vector: ke = (-f, —g, -h, &) (1) riemannian geometry is completely described by ro parameters guv which have already received geometrical and mechanical interpretation, and our first problem is to find a more gencral geometry (or description of a continuum) requiring 14 param- eters so as to leave room for the four parameters kz. this problem was solved in a brilliant paper by weyi in ror8.! in riemannian geometry it is assumed that the difference between two neighbouring points is something that can he given a unique measure, so that any distance can be compared unam- biguously with any other distance. weyl pointed out that a more general geometry is obtained if lengths in different direc- tions af the same point can be compared but not lengths af di ffer- ent points. it can be urged that the idea of ‘ comparison at a distance ” ought really to be as repugnant to us as “ action at a distance.” in practice the comparison of a length in america with the standard metre at paris is not a comparison at a distance; we can trace the intermediate steps by which the unit of length has been transferred by material conveyance or by triangulation to the place where the comparison is made. the assumption of riemannian geometry is that the result does not depend on the intermediate steps—the route of transfer; this is 1h. weyl, berlin sitzungsberichte, p. 465 (1918). an assumption, not an a prior? necessity, and the experimental verification only extends to a limited degree of accuracy. let us consider the effect of rejecting the assumption. instead of a single standard of unit length we now require a standard unit at every point of space-time because the unit cannot be transferred from place to place urtambiguously. this (arbitrary) collection of standards will be called a gauge-system. if a material rod of length / is displaced from (x.9,2,f) to («+dz, ytdy, zt+dz, f+d/) it will in general have a new length /+d/. it is meaningless to ask whether the change is due to a change in the rod or to a difference in the standard units at the two points. to the first order the most general expression for the proportion- ate change of length is diff = ki dx-+- kod y+ k3d.x+- k4qt = kd xp (2) adopting the usual summation convention. here the four «’s are characteristic of the metric in the neighbourhood of (x,4,3.4). we assume that these are the four extra parameters which we wanted, and accordingly identify them with the electromagnetic potential as in (1). integrating over a finite path log (bf) = i a =f (—fdx-gdy— hdx+dt) (3) the integral will be independent of the route between the points r and 2 if the integrand is a perfect differential; the condition for this is —df/at-apb/ax=o, i m/ay—ag/as=o0, the left sides are the usual expressions for the components of electric and magnetic force. hlence the vanishing of the clectro- magnetic field is the condition that /://, may be independent of the route, z.e., the condition that comparison of lengths at ditler- ent places may be unambiguous. the arbitrary gauge-system is irrelevant to the actual phe- nomena just as an arbitrary co-ordinate system is. by a trans- formation of gauge a length 7 becomes 4/7, where dis an arbi- trary function of position. it easily follows from (2) that by this change we get new parameters k’u=kxy—-d(log a)/dxy. the interesting point is that we can identify either «’4 or k. with the electromagnetic potential; it is well known that the latter is indeterminate to the extent that the gradient of an arbitrary function can be added without altering the electric or magnetic force. a really absolute property of the world should be invariant for transformations not only of the co-ordinates but also of the gauge; hence has arisen a study of gauge invariance and covari- ance. for example the riemannian invariant of curvature g is in this generalised geometry replaced by g—6(x*)a+6xkak*. wey] has pointed out that there exists a simple set of completely invariant quantitics in a world of four dimensions which have no parallel in a world of more or fewer «limensions. although this theory finds a place for the electromagnetic quantities in the geometry of the continuum, it is incomplete in that the most characteristic manifestations of clectrical condi- tions are not predictable from their geometrical specification. ‘there is an interaction between the electromagnetic and the mechanical quantities, appearing as the ponderomotive force exerted by an electromagnetic field on its own singularities (electric charges). ilaving removed the riemannian restriction, we have now to impose some other restriction on our generalised geomctry so that the guy and x, will interact according to the law of pondcromotive force. it has been sought to represent this restriction (or additional axiom of our geometry) in the form of a principle of least action. this part of the theory is not so satis- factory. least action applied to 14 parameters gives 14 equa- tions; we require only ro equations to express the observed law of ponderomotive force; the remaining four give relations be- tween the electric current and potential which are useless to us and have to be explained away as undetectable by observation. a more serious difficulty is that the only action invariants which lead to agreement with observation are artificial in appearance, as though nature had failed to display her usual artistry. least action seems to fail here because it attempts to jump by a formal etc. 908 device a territory comprising the problems of electron structure and quantum theory requiring other conceptions than those of field-physics. the value of the hamiltonian method of variation of world-invariants has perhaps been misunderstood; its impor- tance is that it follows the kind of dissection which we ourselves have made when we analyse the world into things existing in space and time. but that application has nothing to do with a governing law of the continuum. a generalisation of weyl’s geometry has been proposed by eddington.? in this theory lengths even at the same point are not initially comparable. the basal geometry is an affine (non- metrical) geometry supposed to be closely descriptive of the underlying relation-structure of the world; the conception of length is not introduced until later when things capable of measuring length have been found. the elementary relation in the world-structure is a four-vector called a displacement and it is postulated that there is a comparability of displacements sufficiently close together in the structure, so that we can pick out a displacement a*+da* at x.-+dx,. which is in some sense ‘equivalent ”’ to a“ at xz. by following a chain of equivalent displacements completely round the boundary of an area ds*” we find the final displacement a“+6a* associated with the initial displacement a“ with respect to the area ds*”. it is found that bat= —ebouvcda\"ds’? where buro®t is a tensor—the gencral- ised riemann-christoffel tensor—which can be taken as de- scriptive of the general interconnection of the world-structure. contracting this tensor we have a tensor of the second rank analogous to the einstein tensor (gy) but differing from it by having an antisymmetrical part fy, as well as a symmetrical part ry». thus from the basal relation-structure we have extracted two tensors ruy and fy, with which to build a physi- cal world of space, time and things. connected with the displacement dx, between two neighbour- ing points there is an invariant ds?=ryrdxudx,; hence there is after all a unique measure associated with the separation of two points which may be called the distance. it will be seen that this is a deduction not an axiom of our geometry. if our experi- mental appliances are such as to get hold of this unique measure, then the geometry of space and time is strictly riemannian as einstein supposed. this is, of course, a partial reaction from the views described earlier in the article; weyl’s geometry is not an actual geometry of space and time, but his ideas are transplanted to a more fundamental domain and illuminate the study of the basal structure of the world. weyl’s own later views have moved in this direction. in his own words the extension of a ‘material object is determined by adjustment, not by persistence; that is to say, the object does not try to connect its present dimensions with previous dimensions by a chain of equivalence; instead it takes up an extension in equilibrium with its present surroundings and therefore settled with respect to the invariants descriptive of the part of the world in which it is now situated. in ejinstein’s theory ds?=g,y,dx,dx,; hence, inserting a con- stant factor x to allow for choice of units, ruv=aguy. as already stated ruy is a generalisation of einstein’s curvature- tensor guy; it contains additional terms supposed to represent the non-maxwellian stresses in electrons, protons and quanta. hence in empty space ru» reduces to gus, and we have im- mediately einstein’s law of gravitation:— giw= guy the antisymmetrical tensor fy» turns out to be the curl of a four-vector and can therefore suitably be identified with the electromagnetic force (which is the curl of x,). in this theory geometrico-mechanical and electromagnetic quantities are com- pletely unified provided that we look at the basal structure; if we do not look so deep we find a bifurcation of the properties of the world into symmetrical and antisymmetrical and a corresponding distinction of space and entities in space. as in weyl’s theory the ponderomotive force of the electric field involves some additional law not comprised in the original 1a, s. eddington, proc. roy. soc., a, 99 p. 104 (1921). universe, modern conceptions of the geometrical axioms. einstein? has sought to complete this afline theory by a suitable action-principle and his result prob- ably represents the greatest advance yet made on these lines; but he himself is now of opinion that it is only formal and the true line of progress 1s not to be found that way. the fact is that, whilst these methods are adequate for field-physics, in the prob- lem of the ponderomotive force field-physics impinges on atomic physics, for which a different order of conceptions scems neces- sary. the field theory has reached its limit and is awaiting the development of the quantum theory. (a, 3.15.) universe, modern conceptions of the.—for sim- plicity we begin by taking space of two dimensions only, that is, we consider processes taking place in a plane e, which is at rest. if we depict these processes by plotting t, the time, on an axis at right angles to the plane e, taken as horizontal, then the movement of a body proceeding uniformly in a straight line according to the law of inertia is represented by a straight line in the three-dimensional diagram; in particular vertical straight lines in this diagram represent the history of particles at rest. such a line, the “‘ graphic time-table ’ of a single particle, is called a world-line, after minkowski; quite generally, on the world-line of a given particle lie all the space-time points which it occupies in the course of its history. on a t-constant plane drawn parallel to e through a given world-point p (‘‘ here and now’’) lie all points contemporary with p. such a plane separates the past and the future, which have their common frontier in this plane of the present. only events belonging to the future half of the world can be influenced by p, while on the other hand what happens in p is subject only to actions localised in the past half of the world. now according to the theory of relativity, the function of separating past and future in the causal sense is not attributed to the plane through p just p's active future pp active past | not causally passive futurel connected with p fic. i. discussed but to the /ight-cone through p, that 1s, the cone on which lie all world-points which are traversed by a light signal ongi- nating in p. ifin our graphical picture the scale is chosen so that the time interval of one second on the t-axis is as long as the length 300,000 km. in the e-plane, this light-cone is a right cir- cular cone, of apex angle 90°, with its apex at p. if it is produced backwards it divides the world into three regions, the past, the future and the intermediate region, with which last p 1s not causally connected. (it may be noted that if the velocity of light be made infinite the cone becomes a double plane which separates the past and the future as considered above.) relativity and recent theories —the causal structure of the world is given by light-cones radiating from all points which separate past and future: its inertial structure is known if the world-lines of the massive points moving without impressed forces, the so-called geodetics, are selected from all possible 2a. einstein, berlin sitsungsberichtc, pp. 32, 76, 137 (1923). universe, modern conceptions of the world-lines. according to einstcin’s general theory of relativity, gravity and inertia are indissolubly connected in one unifying scheme, so that, for example, the motions of the planets follow geodetic world-lines. the causal and the incrtial structure of the world is, on that theory, reciprocally connected with matter; on the other hand, before the theory was formulated this struc- ture was considered as a fixed feature of the world, given a priori, governing matter, but not influenced by matter, as expressed in the drawing on the preceding page. we need not discuss how both together, constituting a field of measurement, determine the measurements mace with rigid bodies and clocks. finally, the electromagnetic field has to be considered. the merging of this with the field of measurement into a single world-geometry has been the subject of recent theories of h. weyl (“ gravitation und elektricitat,” siizungsberichfe berliner akademie, 465, 1918), of a. s. eddington ‘‘a generalisation of weyl’s theory of the electromagnetic and gravitational fields,” proc. roy. soc., vol. 99, 1921); and of a. einstein (“ zur all- gemeinen relativitatstheorie, sifzungsberichte berliner akademie, pp. 32, 1923; “ einheitliche feldtheorie von gravitation und elektricitit, 2b7d., 414,1925). the final success of these theories is still in question. in any case we distinguish between all this (which we call field or ether) and matter. g. mie (“ grundlagen einer theorie der materie,” annalen der physik, vol. 37, 30, 40, 1912 and 1913), has attempted to do away with this dualism, and to merge matter in the field. even though he may have succeeded in finally destroying the old naive representation of matter as a substance, yet the physics of matter is developing to-day along the lines of the quantum theory in quite another direction to that prescribed by the idea of a pure physics of the field. gravifational problems.—since galileo—in contrast to aris- totle—physics has regarded the infinite space of euclidean geometry as the theatre of material events. this assumption leads to serious paradoxes in astronomy. if the masses in the universe are distributed on a large scale uniformly, then the newtonian law of gravitation leads to an infinitely great value of the gravitational potential at every point. we must on this assumption consider, not the nearest large masses—the earth, the moon, the sun—as predominating in their gravitational action on us, but the most distant masses. further, the same reasoning would necessitate the heavens being infinitely bright. we can get over these difficulties by the contrasting picture of space as occupied by matter of perceptible density in a certain limited region only, the density decreasing, as we go out along r from this central region, more rapidly than 1/r. this, however, is unsatisfactory as attributing a preference to certain parts of space. further, einstein has shown that such an island or clus- ter of stars must gradually become depopulated: every now and again so great a fraction of the total energy would unite in one star that this star would be slung off towards infinity on a hyper- bolic path like a comet. a way out of this dilemma is provided if we choose to modify the newtonian laws of gravitation. (attempts, based upon a fundamental idea of lambert’s, have also been made to over- come the difficulties by the assumption of a hierarchy of systems increasing without limit in order of magnitude. recently c. v. l. charlier has taken up this line [ark. fiir. afat. astr. och fysik, vol. 16, no. 22, 1922]). from the standpoint of the theory of action in proximity, it seems simplest to replace the equation for the gravitational potential ® in empty euclidean space with co-ordinates x, y and z, namely the equation ph db ah ab = —+—+— = _ oxt ay\" a . (1) by the equation | ) ab—@d =¢ where e is an exceedingly small positive constant. the new- tonian potential satisfying equation (1), m os r p 909 which decreases in inverse proportion to the distance r from the body producing the field, becomes 7 ee = m the factor et, decreasing exponentially with r, cuts out the action of very distant masses, and represents what we may term a kind of absorption of gravitation. on this assumption, the chief importance is assumed by stellar masses which are separated e i e from us by distances of the order r = -, so that a slight lack of € isotropy in the distribution of such stellar masses would lead to chormous accelerations. nature of space.—feinstein applied the same ideas to his grav- itational equations (‘‘ kosmologische betrachtungen zur allge- meinen relativitetstheorie, sitsungsberichte berliner akademie, p. 142, 1917) and reached the result that space is not infinite but closed. if we consider two dimensions only, space is not a plane, but of the nature of a spherical surface which runs into itself in all directions. the spherically closed space, without boundaries, yet finite, to which einstein was led, is, of course, something quite different from the limited spherical universe of aristotle. the distance r introduced above is the radius of this space, that is, the volume is of the order of magnitude r3. in mathematical terminology, we term such differences between surfaces as cannot be abolished by a continuous deformation fepological differences. thus a plane differs topologically from a spherical suriace, for a closed surface always remains a closed surface, however it be deformed, without tearing. the sphere, again, differs topolog- ically from the tore, or anchor ring, although this is also closed. three- and four-dimensional continua can also possess a variety of topological differences, just as can surfaces. the first and most important question in all speculations on the world as a whole is as to the topology of the space of our world. the gen- eralised theory of relativity, by dispensing with euclidean geometry, has leit the door open for possibilities of every kind. phenomena of inertiz.—at every point of spherical space masses whose distance is of the order r, #.e., the totality of cos- mic masses, will produce an effect enormously greater than the gravitational action of the nearest star. this result, so baleful for the newtonian theory, is just what einstein wants: this enormous effect comes to light in the phenomena of inertia. by the theory of relativity gravitation is merely a slight fluctuation of the inertia field, which is on the whole homogeneous. this inertia ficld may be compared to a high table-land, on which in. isolated localities, corresponding to the neighbourhood of stars, small hillocks arise. if c be the velocity of light, then \\ an) c r c which is a pure number, measures the magnitude of the local fluctuation in comparison to the strength of the homogeneous field. the magnitude p, which is of the dimensions of a length, gives the gravitational radius, proportional to the mass, of the body producing the field; for the sun it is less than a mile. new- ton’s belief can be stated as follows: the plane in which fou- cault’s pendulum swings remains fixed in absolute space, and the fixed stars are apparently at rest in absolute space; hence the plane of the pendulum goes with the fixed stars, and rotates relatively to the earth. on the other hand, einstein, in harmony with mach, declares that this absolute space is a mere ghost, a superfluous intermediary; the actual enormous masses of the fixed stars of the cosmos really control the plane of the pendulum. the conclusion that this conception demands a closed space can be reached in the following way: the laws of action in prox- imity for empty space summarised in equation (1) do not deter- mine fully the newtonian potential until we add the condition that the potential is in general at a level 6=o, matter merely causing a departure from this value which becomes negligible at a great distance. the ether, and in particular the field of inertia, is in a determined state of rest so long as no matter is about, and 910 is slightly disturbed by the presence of matter. if, however, space is closed, the laws of action in proximity determine the potential uniquely, z.e., the state of the ether is not so much modified by the matter as produced. correspondingly einstein found that a world without matter could not be reconciled with his cosmic equations—at any rate, if it were assumed to be static.” he found that the total world-mass must stand in a precise relation to its spatial extent: the gravitational radius of the world-mass must equal the geometrical radius, r, of the sphere of space. this result need not be ascribed to a pre-estab- lished harmony; the total mass which happens to be present in the world determines the cosmic constant e= 5 einstein further invoked the closed character of space to explain the remarkable fact that the velocities with which the stars are moving relatively to one another are so much smaller than the velocity of light which is the norm. he compared the stars in closed space to gas molecules shut up in a stationary vessel and interpreted the comparative quiet which reigns in the cosmos as the effect of a thermodynamic adjustment, that is, as a steady state of equilibrium which has gradually resulted from a prob- ably much stormier past. — _ main difficulties attractive as the einstein cosmology appears at first sight it is open to many objections. a funda- mental consequence of the theory of relativity is that matter alone cannot determine the course of events in the world, for of the three characteristics of matter—charge, mass and motion— the third disappears, since without reference to the field the conception of the motion of separate bodies relative to one another is as indefinite as that of absolute motion. further, w. de sitter has shown (“‘ on einstein’s theory of gravitation, and its astronomical consequences, ” afenthly notices, royal astronomical society, london, vol. 77,1917) that einstein’s equa- tions can be reconciled with a world empty of mass. admittedly such a world weuld not possess a static character, but it is more homogencous than einstein’s world in so far as, in harmony with experience, all geodetic motions are of the same inner nature, and rest is not distinguished among them. finally, there is no observational indication that, even adopting the largest scale for our measurement, the stars are uniformly dis- tributed, and comparatively small departures from homogeneity would, on einstein’s scheme, lead to enormous forces. the present state of the stars is certainly nothing like a final statis- tical state. the small velocitics of the stars are far more likely to be due to a common origin than to an adjustment. to describe completely the homogeneous normal state of the universe, which is fundamental for cosmology, time must be added to space. we abstract two dimensions from space, so that the space-time continuum becomes a surface, and can be depicted by ordinary figures in two dimensions. elementary cosmology—the universe is represented by a vertical plane. the straight lines on it are the geodetics, the light cone from a point p is represented by two straight lines through p making an angle of 45° with the vertical. the electro- magnetic field is zero. the stars are distributed in infinite dilution and are at rest, i.e., their world-lines are all vertical straight lines. . einstein’s cosmology.—the plane becomes a right circular cylinder, the axis of the cylinder having the direction of the ver- tical time axis. geodetics are ascending spirals, cutting the vertical at a constant angle. the light cone from p is represented by the two spirals through p making an angle of 45° with the vertical. the electromagnetic field is zero. the world-lines of the stars are again vertical straight lines; the density of cosmic mass distribution is not infinitely small, but stands in a deter- mined relation to the radius of the right section of the cylinder (7.e., of world-space). de sitter’s cosmology—the universe appears as a hyper- boloid of one sheet. geodetics are hyperbolae given by the intersection of the surface with planes drawn through the mid- point of the hyperboloid. the light-cone consists of the two universe, modern conciptions of the straight-line generators through the origin. the electromagnetic ficld vanishes. the distribution of the stars is infinitely clilute. weyl’s ilypothesits—on weyl’s supplementary hypothesis the world-lines of the stars form a sheaf, which rises in a given direction from the infinitely distant past, and spreads out over the hyperboloid in the direction of the future, getting broader and broader. it is traced on the surface by all planes passing through a fixed position of the generator of the asymptotic cone. in the first case, the universe has a single, coherent, infinitely distant border, while in the second and third cases, there are two borders, the infinitely distant past and the infinitely dis- tant future: the universe stretches from eternity to eternity. this is the essence of the doctrine of closed spaces. the world- line of a permanent body, say an electron, will originate in the one border and proceed to the other border, whereas in the first case, no reasonable rule can be devised to forbid the world-line of a body returning into itself, or rearly into itself. this would lead to the most gruesome possibilities of ghostly doubles and mecting oneself. on the einstein cylinder the light cone crosses itself infinitely often; thus an observer must sce an infinite number of images of one and the same star. however, between the different states of the star to which these images correspond an aeon has passed, namely, the time which light takes to go once round the universe. the perception of what is now happening is haunted by the ghosts of events of very long ago. de sitter’s hyperboloid unites the advantages of both the former schemes: the double border of past and future on the one hand and the light cone which does not cross itself on the other hand. in the cosmology of the first case there is no reason why the world-lines of the stars should be (nearly) parallel to one another; in the einstein scheme this fact is referred to a sta- tistical adjustment; by de sitter’s view, the ‘ sheaf” arises from a common origin of the stars, from the postulate that the stars of our system have had from the beginning a causal con- nection with one another. (this postulate, by the way, is not satisfied by world-lines chosen at random.) they seem to ra- diate out from an arbitrarily chosen central star; their spectra] lines should therefore be displaced towards the red end of the spectrum for an observer on the central star. now the spiral nebulae, which are probably the most distant celestial objects, show, with few exceptions, a strong displacement of their spectral lines towards the red. if the cosmological interpre- tation of this fact is correct, the distance of the spiral nebulae is comparable with the radius of the universe, and we derive for it a value of about 10°’ centimetres. on de sitter’s hypothesis the ether is only slightly disturbed from its state of rest by the presence of matter. the fact that the inertia compass and the star compass indicate almost exactly the same direction is not to be explained by the action of the stellar masses but by the powerful supremacy of the ether in the interaction between ether and matter. it is, however, possible that the gravitational constant and, together with it, the inertial mass of a body is determined not alone by the nature of the body (its gravitational radius), but depends on the total mass which happens to be present in the universe. a circumstance which seems to favour the supposition is that the gravitaticnal constant falls right outside the scheme of the other physical constants. the gravitational radius u of the electron is more than 10% times as small as the radius p (approximately 1078 em.) calculated from its charge and in- ertial mass. in some way or another this must depend upon the disproportion between electron and universe. the simplest hypothesis which we can make would be to suppose that the radius r of the universe is to the radius p of the electron as p is to uw. this does, as a matter of fact, lead to the same order of magnitude for r as is found by measurement for the distance of the spiral nebulae, and by the cosmological interpretation of the shift of their spectral hnes. k. lanczos has still another hypothesis, that of a universe conceived to be in stationary rotation “ uber eine stationire kosmologie im sinne der einsteinschen gravitationstheorie, ” zeitschrift fiir physik, vol 21, 1924). no point at which the universities theory can be checked by astronomical fact is reached. it is, however, important to keep constantly in mind the new kind of interpretation which the relativity theory has rendered possible. (see also relativity; t1me-space.) bibliography.—g. mie, “grundlagen einer theorie der materie,”’ annalen der physth, vol. 37, p. 511; vol. 39 p. 1; vol. 40, p. i (1912 and 1913); w. de sitter, °° on einstein's theory of gravitation and its astronomical consequences,’ monthly notices, royal a stronom- wcal soc., london, vol. 77 (1917); h. weyl, “ gravitation und elektricitit,” sitstngsberichte berliner akademte, p. 465 (1918); a. s, eddington, “ a generalisation of weyl’s theory of the elec- tromagnetic and gravitational fields,” prec. roy. soc., a, vol. 99 (1921); a. einstein, ‘zur ailegmeinen relativitatstheorie,”' sitzungs- berichte berliner akademie, p. 32 (1923); k. lanczos, ‘‘ uber eine stationare kosmologie im sinne der einsteinschen gravitations- theorie,” zezischrift fiir physik, vol. 21 (1924); a. einstein, ‘‘ ein- heitliche feldtheorie von gravitation und elektricitat,”’ s7tsungs- berichte berliner akademie, p. 414 (1925). (ence) universities (sce 27.748).—a striking feature of university development since rg1o is the increase in the number of univer- sities. it is difficult to quote precise figures, because full infor- mation regarding the universities in the union of the soviet republics, in china and in some of the latin american countries is not available; there are also institutions, particularly in the united states of america, which are termed universities but do not perhaps entirely conform to the usual meaning of that word. the total number of universities all over the world, which was certainly not more than 370 in r9r10, approached 450 in 1926; an increase of at least 21%. thirteen new universities have been founded in western europe since rg10, most of them after the war.! in the so-called “* new countries ” of central europe. including the baltic and balkan states, 16 new universities have been established, almost all of them since the war;? many of the elder universities in these countries have been entirely reorganised. in russia, white russia and ukraine several universities were inaugurated during the war, and a great many came into existence after the revolution. some of the latter were soon closed. instead of the 7 universities which existed in 1910 on the present territory of the soviet republics, there are now about 20. ‘the gencral tn- crease in europe is approximately from 143 to 186, this development is not less remarkable on the other conti- nents. where many universities had come into existence during the roth century onlv a few foundations are to be recorded since rg1o, some of which were reorganisations of ofder insuitutions? in latin america at least ten new universities* have been created since that vear. in south africa, which had one university only in 1910, there are now four. india possessed only five universi- ties in 1910 and has now 20, including two women’s universities and the international university founded by rabindranath tagore. two new imperial universities have been founded in japan since roro, so that the number in that country, including the private universities, now reaches 15. in china, where uni- versity life is still in formation, we find now at teast 10 or 12 universities. further foundations in other asiatic countries, such as palestine (the jewish university of jerusalem was in- augurated in 1925, the catholic university, later) persia, siam, australia (university of perth, 1911), and even in hawaii (1920) have also to be recorded. 1 lisbon, porto and reykjavik in 1g11; frankfort 1914, murcia 1915; hamburg and k6in 1919, milan (catholic) university 1g21; milan (royal university) and nimeguen 1923; bari and florence 1924. ? debreczen in 1914; lublin 1918; abo-turku (swedish univer- sity), bratislava (started as hungarian university cf pozsenyi in 1914), brno, ljubljana, poznan, riga, skoplje (fac. of philosophy only), subotica (fac. of law only) and wilnoin 1919; turku (finnish university) 1920, szeged 1921, kaunas 1922, pecs 1923, salonika 1925. | 3‘the rice institute at houston (texas) 1912, the university of akron (ohio) 1913, the emory university at atlanta (ga.) 1915, the catholic university of montreal 1919, the duke university at durham (n. c.) 1925. 4‘the most important are the university of rio de janeiro and the ‘‘ universidad del litoral ” (of argentina), both constituted in 1920, o11 number of students.—the considerable increase in the number of students in the great majority of the universities® is particu- larly striking in the united states. columbia university, with 34,823 students (6,529 only in 1909-1¢c), has now the largest enrolment of students in the world. paris, however, is first in regard to whole time students, of whom there were 21,455 in 1925. an extraordinary development is to be noted also in some universities of central europe, like athens (2,8co students in 1909-10, 8,512 in 1923-4), belgrade (902 students in 1908-9, 7,500 in 1924), bucarest (3,478 in 1909~10, 13,478 inn 1924-5), warsaw (1,263 in 1909-10, 9,419 in 1923-4). in some universities the maximum number was reached in the years immediately after the world war, when thousands of students whose studies had been interrupted or postponed entered. in many cases, however, this increase continues even to-day, and is due both to the general increase of the population and to the increasingly democratic character both of knowledge and public life. in the faculties of law and medicine especially the rush of students is conspicuous. in many universities the increase in various departments of the faculties of arts and sciences is due to the development of university study among women. the very high and ever-growing percentage of women students, already the majority in some faculties of arts, is char- acteristic of contemporary university hfe. since this movement started only in the first years of this century, it would be pre- mature to make any statement about its consequences. . a university teachers -—the teaching staff has not increased in the same proportion, and must be regarded as inadequate when compared with the number of students. fnstitutes.—university institutes, both for teaching and for research, have reached an extremely large number. many uni- versities possess more than 1oo such institutions. this develop- ment is due to the adoption in almost all countries in modified forms, of the so-called ‘‘ seminar ” system, started in germany during the roth century, and to developments which found no place in the traditional university organisation; so new institu- tions, either connected with the old faculties or independent of them, were established. a remarkable feature of university progress in the united states within recent years has been the enormous increase in endowments by private donors. an outstanding instance of this is afforded by harvard university. in 1869 its endowment was $2,257,990. this increased to $22,716,700 in 1909. in 1019 it was approximately $48,000,000 and in 1926 had reached $70,000,000. this increase in endowments is also paralleled as regards the number of teachers and students. in 1910 the total number of teachers in the universities and colleges was 24.667, and the students numbered 274,084. in 1925 the numbers were 56,279 and 726,124 respectively. the increase of women students being proportionately greater than that of men. spectalised [nstitites:—as to these institutions, two different methods have been followed. in most european countries there existed since the end of the 18th century many specialised insti- tutions for higher education which, while independent of the universities, had obtained university rank. they were created mainly for the study of technical scicnces, of agriculture, mining and forestry, of commerce, of fine arts and so on. in. many cases the schools of education, of political science, of dentistry and veterinary medicine were independent establishments. the wumber of these institutions has already grown steadily. since 1910 some 50 or 60 schools of this kind have been founded in europe. in the more important centres of intellectual life, the number of independent higher schools surrounding the univer- sity has become very considerable. paris attains undoubtedly the record with its more than 46 schools. in england, such ‘there are notable exceptions, ¢.g., in germany, where the university of berlin had 14,034 students in 1909—10 and 10,566 only in 1924. * new york university, in the same city, had 4,036 students in 1909-10 and 20,760 in 1925-6; for temple university, philadelphia, the same figures are 5,033 and 10,020; the university of california in 1906-7 had 3,684 students and 11,197 in 1925-6. 912 schools or ‘ colleges ’ are usually affiliated with the universi- tics. in other countries, mainly in america, but also in great britain, the british dominions, and some of the new european countries (e.g., latvia, where the university of riga has 11 fac- ulties), all branches of higher education have been included in the curricula of the universities, which therefore possess faculties of engineering, applied science, veterinary medicine, agriculture, commerce, education, fine arts, music, etc. in some universities the number of faculties has doubled since the war. faculty organisation.—in many universitics of to-day there are faculties which are entirely different from the traditional ones. these again have been divided, ow ing to the developing needs of life and to the specialisation ‘of science. thus for the- ology, in some universities two or even three (e.g., warsaw) different theological faculties have been formed, to meet the requirements of various denominations. economic and social sciences have been separated from law and have formed a new faculty (e.g., geneva). in some countries (e.g., france) a faculty of pharmacy has been created scparate from the faculties of medicine, thus following the practice which has prevailed in amer- ica for many years. the division of the traditional faculty of philos- ophy into faculties of letters (arts, humanities) and sciences(natural and physical sciences), which started very carly in western europe, has strongly influenced the other countries. since the war many universities in central europe, even in germany, have adopted this system. in several cases a special faculty of mathe- matics has been instituted. new chairs —in all faculties, old and new, many new chairs have been established for subjects which 10 or 20 years ago either did not appear at all or appeared only exceptionally in university curricula. these new chairs and subjects may be divided into three groups. in the first place, new branches of science have developed into individual subjects, e.g., radiology, or have been recognised as independent sciences, e.g., sociology, and therefore chairs have been founded for their teaching. in the second place, the closer association of universities with practical life has necessitated the establishment of new chairs for various branches of applied sciences, even for subjects like journalism and nursing. finally, it has been realised that knowledge of forcign nations needs an intensive study not only of their languages but of their whole civilisation: history, litera- ture, political institutions, economic conditions and so on. therefore not only many new lecturers have been appointed for teaching languages, but chairs have been founded for the syste- matic and comprehensive teaching of what in germany ts called ** auslandskunde.”’ national institufes—studies of this last order, which are particularly important for the future, are sometimes organised in special schools or institutes annexed to the faculties of letters and devoted to individual nations or groups of nations, as teach- ing and research institutes. in some cases these institutes, founded and maintained by the mother country, or even the mother university, have been placed in the country the knowl- edge of which was to be specially studied. this system was first adopted by france (the * instituts frangais a petranger,”’ first founded at florence in 1go8, exist now in some ten countrics) and then followed by other nations like great britain, spain, hungary, etc. post-graduate and research work.—the measures taken for furthering research work, especially of post-graduates, are mainly of two different kinds. frequently university “ seminars ” have been developed into research institutes grouping the students who wish to devote themselves to pure science. on the other hand, the system of fellowships which has been developed espe- cially in the anglo-saxon countries offers to the students anc post-graduates certain possibilities of continuing their research work, spectalisation.—despite these efforts for promoting research work in the universities, there is a serious and ever-growing danger for pure science. in the various specialised higher schools, and in the majority of the faculties, the studies tend to acquire a professional rather than a scientific character, even in the universities faculties of arts and sciences the majority of the students mainly seek to pass the examinations required for various professions. the professors have to devote most of their time to teaching duties, to examinations, to administrative business, and conse- quently are handicapped in research work. the years between graduation and a professor’s chair are particularly critical for young university men, a very small minority of whom are inde- pendent financially. fellowships as well as institutes where they can find temporary posts, are insufficient in number in most countries. in both cases the pecuniary return is inade- quate, when compared with the cost of living and with the advan- tages offered by other careers. the league’s committee on intellectual co-operation (see below) at its very first session pointed out two of the deeper causes of this danger. it desires “to stimulate pure scientific work and to increase general learning, with a view to combating an excess of specialisation and professionalism.’’ specialisation is indispensable, but no subject can be studied satisfactorily in isolation from cognate problems. the student, instead of spe- cialising hastily at the very beginning of his university work, should first obtain a certain amount of general culture. pro- fessional utilitarianism induces the students to prefer those branches of science which lead to tmmediate practical applica- tion. while these sciences are not less important than others, their empiric study should be based upon more fundamental knowledge, and even these sciences cannot progress indefinitely without a simultaneous progress of theoretical investigations. effects of world war.—still other, less general, reasons explain the very scrious dangers observed in university life to-day. first of all are the consequences of the war. a whole generation of teachers and students was obliged to interrupt during four or more years its normal university work. the interruption of international exchanges isolated many countries or groups of countries. in the university libraries there are tremendous gaps which even now are far from being filled. political problems have absorbed the thought of many thousands of intellectual workers, economic conditions have impoverished them and weakened their social position. the first years after the war were not more favourable. after the conclusion of peace, between many countries a bad feeling remained which hindered intellectual relations of any kind; and it was (and sometimes still is) particularly strong in the univer- sities. the delicate problem of national, religious and racial minorities has troubled university life in various places. in others, revolutions have simply destroyed it, at least for a certain number of years. the economic situation after the war was still more unfor- tunate. the tendencies described above are explained, even justihed, by the material needs of the moment. exchange diffi- culties made it impossible to secure indispensable books and instruments, or to erect buildings to meet the needs of the new universities and of the enlarged old universities. students and professors alike suffered misery in whole countries. in spite of these dangers and obstacles, much has been achieved. there must be indeed in university life an extraordinary vitality which justifies the most ambitious hopes for the future. new intellectual forces have come into existence, and new forms of organisation have helped the universities to overcome the diffi- culties of the critical years, and will help them to continue their development in the future. nationalism.—during the whole roth century, sinivenuity life, which had been undoubtedly international in the middle ages and in the times of the renaissance and the reformation, became more and more closely connected with national develop- ment and national feeling. the world war and its consequences have rather strengthened this connection. in many territories which passed from one state to another the national character of the universities and higher schools changed with the political regime.!. many nations, especially in central and eastern europe, 'the university of strasbourg, german before the war, became french, the russian universities of warsaw and dorpat became respectively polish and estonian. university ex’tension which before the war, owing to political conditions, had either no, or insufficient, universities of their own, have profited by their independence, creating universities as living symbols of their liberty and proofs of their intellectual progress or maturity. in all such cases university development has been directed by the national ideal. national co-operation.—in countries where the number of universities was large the necessity of promoting co-operation between the national universities began to be recognised more strongly. in roto the well-known ‘ office des universites et ecoles francaises ’’ was founded in paris. in 1912 the numerous universities of the british empire held their first congress an« decided to establish a common universities bureau, which started its activitics during the war and a few years later organ- ised the second imperial universities congress. similar offices came into existence in switzerland, italy, belgium, holland, etc. in the united states a similar re/e has been assumed by the va- rious associations of universities, by the institute of international education in new york, and by the american university union in europe. these national organisations bring the universities of their own country into closer contact, and promote co-opera- tion with the universities of other countries. international co-operation.—international university co-op- eration, which was almost entirely interrupted during the war, plays an extremely important re/e in the university life of to-day. ambitious schemes have been proposed to organise it systemat- ically. the project of an international university has been advanced on various sides. up to now, this idea has been realised in a limited but perhaps more practical form by organising in various places international courses and summer schools, like those started in. brussels, vienna, geneva, the hague (inter- national law), williamstown, mass., etc. exchanges of professors and students international exchanges of professors and students have been recently facilitated by means of international conventions. general conventions of that kind being still impossible, such agreements have been con- cluded between one country and another (e.g., between france and a great number of other european nations since the war; also between various latin-american countries) and between one university and another in the united states. lecturers or series of lectures given occasionally by travelling professors in foreign universities are more frequent than exchanges of teachers in the proper sense. a practice has grown up in the united states and canada of professors “ visiting ” other universities by invitation for the purpose of delivering lectures. exchanges of students and, in general, study abroad have been facilitated by progress toward the international recognition of the equiva- lence of studies and degrees. while no general conventions have been concluded for this purpose, various countries have pub- lished official lists of forcign degrees recognised by their national universities. conferences of universities of two different countries (france and switzerland in rgr9, england and switzerland in 1922) mark progress in that direction. students who are more and more interested in international affairs have developed inter- national associations. the international students’ confedera- tion founded in 1919, is the most representative of these federa- tions. the splendid results achieved by the european student relief fund of the world’s student christian federation and the activity of the international university federation for the league of nations! should also be mentioned. the league of nations.—all these problems have been taken up by the league of nations, and carefully studied, since 1922, by its committee on intellectual co-operation. the international university information office, established by the committee in 1923, is the nucleus of the international institute of intellectual co-operation, offered to the league by the french govt. and opened in paris in nov. 1925. the institute’s special section 1 university women (post-graduates) joined in an international federation which has devoted particular attention to the question of international fellowships; the catholic students’ associations have an international secretariat called ‘‘ pax romana.” 913 for inter-university relations publishes a quarterly bulletin con- taining information on international university development. birntrograpuy.— year book of the universities of the empire; minerva; jahrbuch der gelehrten welt; index generalis: bulletins of the league of nations committee on intellectual-co-operation; the college blue book —u.s. colleges and universities of liberal arts and sciences (1923). (o. ita.) university extension.—the older type of university extramural work, called officially university extension at ox- ford and london and university local lectures at cambridge, has continued to advance since 1910. even during the world war a large number of courses were delivered, and numbers of men and women, with extra burdens of work and anxiety, wel- comed the relief of turning their thoughts to inspiring subjects. i. the work in great britain the period has shown a remarkable development of university tutorial classes, begun by oxford in 1908 and soon taken up by other universities. the system, like the older type, provides for lectures, discussion classes and paper work; but the membership is limited to a small number, formerly 32 and now 24, of students pledged to fulfil the conditions for three years. in 1910-1 the number of classes was 72 and students 1,829; in 1924-5 these had increased to 452 and 9,012 respectively. the cambridge jubilee.—in 1923 a jubilee conference was held at cambridge to celebrate the soth vear of the university local lectures, founded by professor james stuart in 1873. it was attended by representatives of most of the universities of the british empire and of some american universities. the discus- sions ranged over the whole field of the teaching activities of universitics outside their own walls. summer meetings —the summer meeting, which takes place at oxford and cambridge in alternate years, has been attended by several hundred students. the same universities, in addition to london, arrange summer courses for foreign students and for others. the tutorial classes summer school is now an important feature and is held annually at oxford, cambridge and other centres. . royal commission report—the royal commission on the ancient universities, which reported in 1922, urged that extra- mural instruction should be regarded ‘in all universities as an established and essential part of the normal work of a university.” to this end they recommended “ that a special inclusive grant of £6,000 a year be paid to oxford and cambridge universities to enable them both to develop their extramural work and to assist in providing financial support for adult students ”’ entering the university. a substantial part of the grant has been received, and both universities have formed new governing bodies on the lines recommended. general devclopments.—other organisations are forming ex- tramural boards, and one—university college, nottingham— has appointed a professor of education, whose main duty is to organise and develop a department of extra-mural instruction. consultation between different universities has become much more regular and systematic than it was. the central jotnt advisory committee on tutorial classes, formed in 1909, was one of the first bodics to represent all the universities and university colleges in england and wales. it also has direct representation of the joint committees, which manage the work in each case, and which include members nominated by the workers’ educational association. at the congresses of universities of the i:mpire, held in 1912 and 1921, a prominent place was given to teach- ing work outside the walls. the tutorial class movement has been specially successful in australia, canada and new zealand. every university and university college in england and wales is now conducting tutorial classes. several are starting or re- starting university extension work of the older type, a develop- ment which has been mace possible by the issue, in aug. 1924, of new regulations of the board of education providing for grants in aid. adult students at the universities —one of the most promising developments is the plan, recommended by the royal commission, of bringing up to the university adult students who have gone 914 through a course of extramural instruction. at both oxford and cambridge a number of such students are now in residence for at jeast a year, and experience is already showing that, besides widening their own outlook, they contribute an element of great value to the undergraduate life of the place. all will return to their homes with powers of greater service to the community, and many will become valuable teachers in the adult education movement. bibliograpity.—w. hl. draper, oniversity extension: a survey of 50 years (1873-1923) (1923); albert mansbridge, university tutorial classes (1913); r. st. j. parry, cambridge essays on adult educa- dion (1920); alex hill, first congress of the untuersities of the en pire, 1912, report of proceedings; alex hill, second congress of the universities of the {ompire, 1921, report of proceedings: cldidt education committee, final report. [cmd. 321]; royal commtission on oxford & cambridge universities, report [cmd. 1588\\; report on the jubilee celebration of the local lectures, july 6-10, 1023. cd. fie s2 °c) it, in: the united states university extension in the united states may readily be traced to the development in great britain of the idea of ex- tending the influence and advantages of the universities of ox- ford and cambridge, which were serving only a small and select body of students. this movement whereby opportunities of university education were offered to the multitude was simply one phase of the genera] tendency to democratise education. it might well have found its origin in america, where the dis- crepancy between the cost of university education and the in- fluence of universitics upon the community was deeply felt. the early form of university extension was that of the “ ly- ceum ”’ or short lecture course—not too profound, often ilus- trated, intended to entertain as well as instruct. organisations were formed in certain cities the purpose of which was to main- tain these cultural lecture courses. soon the universities began to consider their obligation in this respect and depariments of extension teaching were organised as part of the educational programme of important institutions of higher learning, par- ticularly those located in urban centres. although the short iecture course served a useful purpose, yet the lyceum as a means of education, with its difficulty of maintaining a balance between the serious and the entertaining, proved unsatisfactory. it became necessary to approximate much more closely the form of instruction followed in the established schools and offered to students in regular attendance. this implied, first, the trans- fer of universily education to the homes of those who could not attend classes, and correspondence courses came into being. again classes were organised in places within reach of the uni- versities, and at hours convenient to wage earners. the large universities of the west, the university of chicago and the university of wisconsin for example, built up great and important departments of correspondence study. in the east, however, the class system has prevailed, although some institu- tions use the lyceum and the home study system as supplemen- tary to the classes held in the university halls and in extra- mural centres. this is notably true of columbia university, new york city, which has built up a most claborate system of adult education,—enrolling 16,500 students in 1925-6, in classes of university extension and 4,000 students in home study. the original lyccum form is maintained in the institute of arts and sciences. new york university and the college of the city of new york also have very large departments of university extension and thus enroll many supplementary students. there is a general fecling among certain universities and col- leges of the country, particularly those in the fast, that they have their own function to perform and that this would be jeop- ardised if they should supplement their classes by those intended for the irregular student. thus, princeton gives no indication of a desire to enter upon this work. yale in like manner is cautious in its active interest in adult education. harvard co-opcrates with tufts college, massachusetts instituie of technology, boston university and wellesley college in offering courses of collegiate grade to qualified although not formally matriculated students. the state of massachusetts has a well organised de- partment of university education. there is no established policy in the universities as to credit for degrees for extension students. untermyer, samuel the western universities credit freely their correspondence courses, columbia gives credit for class instruction but not for home study. harvard grants eredit in co-operation with other institutions toward a special degree, that of a.a., associate in arts. it is interesting to note that early in the 19th century colum- bia college initiated a series of lectures open to the public on the payment of a small fee. this movement was premature. in 1889 teachers college, of columbia university, commenced certain elementary courses in science for teachers, and, in 1897 courses were given throughout the academic year and counted for a di- ploma. in t910 columbia university established the department of university extension which has grown to such remarkable preportions. ‘the reports of the national extension association should be consulted by the reader who desires to study the de- velopment in detail of this side of higher ccdlucation. oe cd) untermyer, samuel (1858— ), american lawyer, was born at lynchburg, va., march 2 1858. he was educated at the college of the city of new york and at the columbia law school (ll.b., 1876), was admitted to the bar in 1879, practising therealter in new york city. ife was counsel in many celebrated cases covering almost every phase of corporate, civil, criminal and international law. as counsel for h. clay pierce he pre- vented the standard oil co., after its dissolution in 1910, from dominating the water-pierce company. in the same year he effected the merger of the utah copper co. with the boston consolidated and the nevada consolidated cos., involving more than $100,000,000. in 1903 he undertook the first judicial exposure of “ high finance ”’ in connection with the failure of the u.s. shipbuilding co., organised as a consolidation of the larger shipbuilding companies in america. after this he conducted a number of similar exposures. in ro1r he delivered an address entitled, “is there a money trust?” which led the following year to the so-called pujo money trust investigation in which he appeared as counsel, by the committee on banking and currency of the federal house of representatives. mr. untermycr for years urged such measures as the com- pulsory regulation of stock exchanges, reform of the criminal laws, the regulation of trusts and combinations and other economic legislation. he was counsel for many reorganisation committees, including those of the seaboard air line, the rock island railway, the central fuel oil co., and the southern tron and steel co. he took an active part in preparing the federal reserve bank law, the clayton bill, the iederal trade commission bill and other legislation curbing trusts. ife was a delegate to the democratic national conventions in 1904, 1908 and 1912, and delegate-at-large for the state of new york in 1916. he was a strong supporter of president wilson’s adminis- tration. after america entered the world war he was adviser to the treasury dept. regarding the interpretation of the income tax and the excess profits tax laws. he was appointed by presi- dent wilson to serve on the u.s. section of the international high commission, which sat at buenos aires, in 1916, for the purpose of framing uniform laws for the pan-american countries. in 1920-1 he was counsel for the lockwood committee, ap- pointed by the state legislature to investigate an alleged con- spiracy among the building trades of new york city. the charge was that labour leaders were using their power by ex- torting bribes for the prevention of strikes, by preventing in- dependent bids and by forcing building awards to favourites. many illegal acts were disclosed and numerous convictions secured. it was shown that in many of the building trades both manufacturers and dealers, often with the collusive aid of labour leaders, had organised to fix prices and prevent com- petition. public opinion, especially in view of the housing shortage, reacted sharply to these revelations, and it was felt that mr, untermyer’s work in this connection had been per- formed with admirable public spirit, energy and courage. mr. untermyer was an ardent believer in the zionist movement and was president of the keren hayesod, the agency through which the movement was conducted in america. urbanisation urbanisation.—the growth of cities has characterised the increase in the population of all countries. this urban tendency which has affected the whole social order of the modern world, continued almost unbroken until the world war. since then, in the inevitable redistribution of population consequent upon a slowing down of industry, there has been a suggestion of a de- crease in the movement both in europe and america. the urban tendency is due to the promise of greater rewards for concen- trated energy; to reduced areas for free colonising; to improved agricultural methods; to immigration; and to the tendency of foreign groups to concentrate in cities. (see also population.) distribution of populations —the extraordinary changes in population resulting from economic conditions have been statis- tically measured in the united states (see table i), but in europe enumerations have been detailed and systematic only in great britain and france. according to the most recent (available) censuses covering europe (ranging from 1912-20) there were in that continent, exclusive of russia, 291 cities having more than 50,000 inbabibants) representing approximately 20% of the total population. in the united states the caneoonilite percentage was 31. table i, 9t5 urbs. this has led, in the latest census of england and wales, to an inquiry as to place of work with reference to the place of res- idence. the population of the world in 1926 was placed at 1,800 millions of which it is estimated that about 12% live in cities and in more or less urban territory whose population can definitely be estab- lished from lite censuses; a more accurate percentage, namely 29° is to be found, however, by comparing the urban population with the total population of the countries in which they live. this estimate ts complete, as if omits many of the densely popu- lated cities of asiatic countries, of southern europe, and of russia, and—an important omission—the highly inclustrialised population of germany. the largely rural character of other coun- tries omitted, which have no official statistics of city growth, would however probably tend to offset the large urban figures for germany. the are no complete statistics showing the extent to which the population of the world has concentrated in urban districts, but data are available for some of the principal countries. in table i. the urban populationin proportion to the total is given for all the countries which have made this segregation. distribution of population in groups of cities classified according to size and in rural territory: 1900-20 per cent of total 1920 igio 1902 population am ny class of places number number number of population of population of population 1920 1910 1900 places places places . total population of the united mmtates . 105,710,620 es, 91,972,266 ba 75,994,575 100-0 | 100-0 | 100-0 urban territory (inhabitants) 2,787 54,304,603 2 e132 42,166,120 1,501 30,380,433 51-4 45-8 40-0 i,000,000 or more , ‘ 2 19,145,532 2 8,501,174 3 g40 ,474 9:6 9:2 8:5 500,000 to 1,000,000 : , 9 6,223,769 5 3,010,667 3 1,645,087 5-9 aa 2:2 250,000 to 400,000 : : 13 4,540,838 it 3,9.49,839 9 2,861,296 4:3 ae 3°8 100,000 to 250,000 ‘ : 43 6,519,187 at 4,840,458 om 3,272,490 6:2 5:3 4:3 50,000 to 100,000. . 7 5,265,747 59 4,178,915 40 2,709,338 5:0 4°5 3:6 25,000 to 50,000 143 5,075,041 119 4,026,045 82 2,800,62 4:5 4-4 3:7 10,000 to —-_- 25,000 459 6,942,742 367 5,524,434 280 4,338,250 6-6 6-0 o7 5,000 to 10,000 721 4,997,794 612 4,254,856 468 3,220,766 4:7 4:6 4:2 2,500 to 5,000 1,320 4,593,953 1,106 3,879,732 893 3,103,105 4°3 4-2 4:0 rural territory (inhabitants) - 51,406,017 na 49,806, 146 2 45,614,142 48-6 54:2 60°0 incorporated places of less than 2,500 12,905 8,969,241 11,832 8,169,149 | 8,930 6,301,533 8-5 8-9 8:3 other rural territory ; 2,436,776 ss 41,636,997 - 39.31 2,609 4o-1 45-3 51°7 proportion of urban to total population. urban communities tend to grow more quickly than rural districts. this, and the con- tinuous formation of communities have led to an increase of the proportion of urban to the total population of most countries. even if the rate of growth in urban and rural communitics were equal, there would neverthcless be a constantly increasing pro- portion of urban population, provided the population of the coun- try were increasing. were there no movement from country to city, no disturbing effect from international migration, and no difference between urban and rural communities with respect to the natural increase from excess of births over deaths, there would still be, in a growing population, a constant passage of cer- tain communities from the rural to the urban class. the smaller towns, maintaining a rate of growth uniform with that of the country as a whole, would one by one pass the limit fixed for the urban population, thus increasing the proportion of urban popu- lation. in great britain and the united states, for instance, this process is continually operating. mutual protection and social intercourse have been largely supplanted by manufactures and trade as the principal factors controlling the growth of cities. all the principal countries have taken a census of population since 1920, but uniform methods were not followed in determin- ing the size of the places to be considered as urban communities. as a rule, the population reported for these places resided within the city limits, but in some cases the city limits give only an inad- equate idea of the population grouped about the urban centre. in large cities there are suburban districts outside the city limits, which, from many standpoints, form part of the city. many of the residents have their business or employment in the city and to some extent, persons living in the city are employed in the sub- united states—as defined by the census, urban territory includes all incorporated places of 2,500 inhabitants or more, and in three new england states, all towns of that size; all other territory is classed as rural. the urbanisation of the population has been notable for the increase in the large cities. there are four cities in the united states that have a population of more than a million. china, great britain, japan and india each has two cities of this class, and argentina, austria, brazil, france, germany, russia and turkey each has one city with more than a million inhabitants. in the united states there were only six cilies m 1790 that had 8,000 or more inhabitants, and their population amounted to 131,472, forming 3:3% of the total population. at the census of 1920 there were 924 citics in this class, and they had 46,307,640 inhabitants, or 43°8% of the total. the census of 1920 was the first to show that more than half (51-4%) of the inhabitants resided in places having a population of 2,500 or more, the proportion having increased from 28-6°% in 1880. in many instances the population of the cities has been increased by the annexation of territory and the extension of the municipal boundaries so as to include suburban districts. the boundaries of some cities have been extended so as to entirely surround independent governmental districts. these districts being outside the corporate limits of the citics (although really within them), their population is not counted as part of the city. highland park and hamtramck, michigan, are densely popu- lated communities, entirely surrounded by the city of detroit, mich., but their population is not included in the population of detroit. a similar condition exists in los angeles, cal., and in numcrous other cities. (w. m. sr.) qi6 table ii. urban transportation total and urban population (this list comprises only countries which at recent censuses have segregated urban and rural population.) population country eateue urban urban defined oes aggregate | number percent | europe united kingdom: england & wales 1921 37,886,699 30,035,417 79-3 1,154 urban districts. scotland 1921 4,882,497 77d, 702 77-3 places having 1,000 inhabitants or more. ireland . ioi 4,390,219 1,470,595 33-5 civic areas having 2,000 inhabitants or more. belgium 1920 7,402,276! 224,225 rig | places having 5,000 inhabitants or more. czechoslovakia 1921 13,595,816 5,884, 576 43-3 places having 2,000 inhabitants or more. denmark 1921 3,267,813 1,418,551 43-4 cities and villages. finland 1920 3,364,807 543,046 16-1 towns. france . 1921 39,209,518 18,205,492 46-4 places having 2,000 inhabitants or more. netherlands the 1920 6,865,314 6,327,928 q2:2 places having 2,000 inhabitants or more (not defined as urban). norway 1920 2,649,775 785,404 29°6 towns. portugal 1920 6,032,991 1,050,500 17-4 cities having 2,000 inhabitants or more (not defined as urban). serbs, croats, and slovenes, kingdom of 1921 f2.01775323 7,804,596 l 64-9 places having 2,000 inhabitants or more (not defined as urban). sweden 1920 5,904,489 1,813,422 30-7 aa nee a area; not absolutely | defined. | ukraine 1923 25,605,027 5,087,595 19-9 only places having 500 inhabitants or more | enumerated. | america continental united states 1920 105,710,620 54,304,603 51-4 incorporated places having 2,500 inhab- itants or more. alaska . 1920 55,036 3,058 5:6 incorporated places having 2,500 inhab- itants or more. | hawaii . 1920 255,912 93,758 36-6 incorporated places having 2,500 inhab- itants or more. porto rico 1920 1,299,809 283,934 21°8 incorporated places having 2,500 inhab- itants or more. canada 1921 8,788,483 4,352,773 49°5 population residing in all cities, towns and incorporated villages. cuba i9i9 2,889,004 1,290,955 a479 cities having 1,000 inhabitants or more. argentina iqi4 7,885,237 4,525,500 57-4 classified by local board. hile 1920 3,754,723 1,749,562 46-6 cities, towns and villages having 1,000 in- habitants or more. guiana, british 1921 297,691 67,9387 22-8 towns. honduras, british 1921 45,317 22,524 49-7 the district town and other towns of the ! colony. asia ceylon . 1921 4,504,549 580,953 i2- towns having special regulations regard- ing deaths. hongkong 1921 625,166 542,003 86-7 approximately all population massed around hongkong harbour. india 1921 318,942,480 32,418,776 10-2 all towns. japan 1918 58,087,277 10,842,857 18-7 all large cities (smallest 23,996); not de- fined as urban. malays, british i921 3,358,054 932,170 27'8 towns having 1,000 inhabitants or more. africa egypt 1917 12,718,255 1,854,100 14:6 towns; ae defined as urban (smallest 11,022); uganda protectorate . : 1921 3,071,608 65,156 2-1 towns having 500 inhabitants or more. union of south africa, british . 1921 6,928,580 1,735,685 25-1 any localitics possessing some form of urban local authority. all others australia 1921 5,436,794 3,370,316 62-0 metropolitan areas and urban provincial districts. dominican republic . 1920 894,065 148,894 16-6 not defined. new zealand 192 1,284,873 626,633 48-8 cities, boroughs or town districts having 1,000 inhabitants or more. 1 toes not include population (60,179) of eupen and malmedy. 2 population estimate from 1925 statesmen’s fear book.",
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