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Cornell University Library
HA37 .U5 1899b
The federal census;
olin
3 1924 030 375 145
Publications
OF THE
American Economic Association
New Series. No. 2.
THE FEDERAL CENSUS
CRITICAL ESSAYS
BY MEMBERS OF THE
AMERICAN ECONOMIC ASSOCIATION
COI,l,ECTEr)
AND EBITED BY
A SPECIAL COMMITTEE
MARCH, 1899.
PDBIAA^ ^^^ *^
PRESS OF
Andrds & Church,
ithaca, n. y.,
-1)3
CONTENTS.
Report of the Committee on the Scope and Method of
THE Twelfth Census 1-7
Population ;
Area, Population, Birthplace, Migration and Conjugal Con-
dition, Walter F. Willcox 8-37
Area (8) — Population (9) — Density of Population (11) —
Center of Population (12) — Birthplace (14) — Proportion of
Foreign born Population in the United States ( 1 7 ) — Propor-
tion of Native Population in Foreign Countries (18) — Foreign
born in American Cities (22) — Interstate Migration (25) —
Conjugal Condition (29).
Colored Population of African Descent, W. Z. Ripley 38-48
The Census of the North American Indians, Franz Boas 49-53
Age, Sex, Dwellings and Families, and Urban Population,
George K. Holmes 54-67
Age (55) — Sex (60) — Dwellings and Families (60) — Urban
Population (65).
Illiteracy and Educational Statistics, Davis R. Dewey (>^n
Illiteracy (68) — Educational Statistics (74).
Statistics of Occupations, Richmond Mayo-Sniith 78-107
Introduction (78) — Method of the Eleventh Census (84) —
Results of the Eleventh Census and Methods of Analysis (91 )
— Occupation and Sex (92) — Occupation and Age (94) —
Method and Scope of the Twelfth Census (102) — Appendix :
Previous Censuses in the United States ( 105 ) .
Vital and Social Statistics.
The Mortality Statistics of the Eleventh Census, Cressy L.
Wilbur 108-120
Fundamental Imperfections of the Census Statistics of Mor-
tality (108) — Registration and Non-registration Areas (no) —
Systematic Neglect of Non-registration States (in) — the
Elastic Scale of Proportional Deaths (113) — Misleading In-
ferences from Proportional "Death Rates" (116) — Conclu-
sions and Recommendations (119).
iv Contents.
Mortality Statistics of the United States Census, Irving
Fisher, 121-169
Inaccuracy (121) — Limit of Accuracy (131) — Death Rates,
(135) — "Corrected" Death Rates (141) — Average Life Times,
( 148) — Life Tables ( 157) — Suggestions ( 165 )— Literature ( 167 ).
Statistics of Crime in the United States Census, Roland P.
Falkner 170-183
Statistics of Crime prior to 1890 {170) — Census of 1890 (173)
— General Criticism of the Census Statistics of Crime (179) —
Propositions for the Twelfth Census (182) — Notes on Foreign
Statistics of Crime (183.)
Pauperism and Benevolence, Samuel M. Lindsay 184-203
Treatment of Pauperism and Benevolence in earlier Cen-
suses {185) — The Eleventh Census (19s) — Value of Census
Statistics of Pauperism and Benevolence (199) — Suggestions,
(202).
AGRICUI,TURE AMD FARMS :
Agriculture, N. I. Stone 204-218
Cereals (208) — Fruit Growing, Market Gardening, etc.,
(209) — Live Stock (209) — Implements and Machinery (209)
— Working Force Employed on a Farm (210) — Fertilizers
(211) — Appendix: Suggested Tables (216).
Farm and Home Proprietorship and Real Estate Mortgage
Indebtedness, David Kinley 219-245
Introduction (219) — Characteristics of the Two Volumes
considered together (223) — The Volume on Proprietorship and
Indebtedness of Farms and Homes (226) — Criticism of Results
Presented (230) — Real Estate Mortgages (236) — Conclusions
(244)-
Transportation :
The Statistics of Transportation, Einery R. Johnson and Walter
E. Weyl 246-256
Manufactures :
Manufactures in the Federal Census, 5". N. D. North 257-302
The Earlier Censuses of Manufactures (258) — The Defective
Standard of Measurement (265) — Factory Product and Trade
Product (269) — Gross, "Net" and Actual Values (275) — De-
fective Analysis and Misleading Percentages (279) — Capital
in Manufacturing (283) — Classified Wage Returns (298).
Contents. v
The Report of the Eleventh Census on Manufactures, William
M. Steuart 303-327
Census Schedules (304) — Canvass of Cities (306) — Different
Industries (310) — Cost of Product (313) — Increase in Product,
(318) — Employees and Wages (320) — Capital (323).
Statistics of Manufactures in Cities, Worthington C. Ford 328-342
Statistics of Manufactures in Earlier Censuses (328) — in the
Census of 1890 (333) — Cost of Production {335) — Employees
and Wages (338. )
Wage Statistics and the Federal Census, Charles J. Bullock, 343-368
Wages in the Earlier Censuses (343) — Ninth Census (345) —
Tenth Census (347) — the Massachusetts Census of 1885 (349)
— Mr. Weeks's Investigations (351) — Census of 1890 (353) —
Comparison with Tenth Census (356) — "Average" Earnings
(363)— Suggestions (364.)
Wealth, Debt and Taxation :
Valuation and Taxation, Carl C. Plehn 369-414
General Introduction (368) — The Wealth of the Nation (372)
— Assessed Valuation of Personal Property Taxed and Ad Va-
lorem Taxation (397) — Receipts and Expenditures of National
and Local Governments (405) — General Conclusions (409) —
Appendix : Inadmissible Comparisons in the Eleventh Census,
(411).
Suggestions in Regard to the Statistics of Municipal Finance
in the Census of igoo 415-465
Summary of Principal Suggestions (414) — General Sugges-
tions (416) — Statistics of Indebtedness (425) — Assessed Valua-
tion and Ad Valorem Taxation (429) — Revenue and Expendi-
ture (429) — Receipts (440) — Expenditures (442) — Final Con-
siderations (448) — Appendix I : Summary (455) — Appendix
II: Schedules for Debts and Assets (455) — Appendix III:
Schedules for Revenues and Expenditures (456).
The Scope and Method of the Twelfth Census, William C.
Hunt 466-494
History of Census Work (466) — The Eleventh Census (473)
— Present Outlook (478) — Supervisors and Enumerators (479)
—Tabulation of Returns (488).
Extracts from Letters 49S-503
Appendix : Provisions of Census Laws of 1889 and 1899 504-510
Index 511-516
Cornell University
Library
The original of this book is in
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There are no known copyright restrictions in
the United States on the use of the text.
http://www.archive.org/details/cu31924030375145
REPORT OF THE COMMITTEE ON THE
SCOPE AND METHOD OF THE
TVv'EEFTH CENSUS.
The Association at its Cleveland meeting in December,
1897, authorized the appointment of a Committee to in-
quire into the scope and method of the eleventh census,
with a view of determining what ought to be attempted
at the next. This Committee was duly appointed, and
begs to report as follows : ^
The Committee determined to undertake a review of
the eleventh census ; and for this purpose it invited
various members of the Association and others to cooper-
ate by preparing critical articles on particular portions of
the census. In order to extend this cooperation still fur-
ther, and especially to discover what might seem weak
points in the eleventh census, and inquiries desirable to
be elaborated in the twelfth, it addressed a circular letter
to all the members of the Association asking them to
reply to certain questions.^
'Presented to the Association, December 28, 1898.
^The letter was as follows :
Dear Sir : — At the meeting of the Association in Cleveland, Dec.
29-31, 1897, a committee was appointed to consider The Scope and
Method of the Twelfth Census. The committee proposes to make a
study of the methods and results of the last census for the purpose of
suggesting what may reasonably be expected from the next. The
effort, however, will be constructive rather than destructive, its chief
object being to form an intelligent public opinion upon this important
scientific undertaking, — the most important of the kind in the world.
The committee has secured the cooperation of a number of members
of the Association interested in particular portions of the subject. An
analysis will be made of the more important topics of census inquiry,
under the following heads : —
2 American Economic Association.
The circular letter was not successful ; only about
sixty replies were received. Doubtless many members
of the Association, while interested in the census, did
not consider it worth while to answer the inquiries un-
less they had some specific criticism or recommendation
to make. Some replies were of considerable value in
pointing out errors in the eleventh census and making
suggestions for the twelfth, and they have been utilized
by the committee and by the persons making special re-
ports. A brief digest of them will be prepared by the
Committee to accompany the papers if they are pub-
lished in monograph form.
On the other hand, the invitation to cooperate with
the Committee in carefully reviewing certain portions
a. Methods and results of the last census.
b. Scope and method of the twelfth census.
c. Experience of other countries, references and bibliography.
These studies will be edited by the committee, reported upon at the
next meeting of the Association, discvissed, and (if the Association
approve ) the whole printed as a monograph. It is believed that such a
work will furnish a basis for scientific judgment, will concentrate in-
telligent opinion upon the census and be a contribution of permanent
value to the science of statistics.
The committee respectfully asks your cooperation in this undertak-
ing by answering the questions on the accompanying sheet and mak-
ing such other suggestions as you may deem important. All replies
will be treated as confidential and they need not be signed.
Very truly yours,
RICHMOND MAYO-SMITH,
WALTER F. WILLCOX,
CARROLIv D. WRIGHT,
ROLAND P. FALKNER,
DAVIS R. DEWEY,
Committee.
(a) Have you made use of the eleventh census and if so, of the Ab-
stract, Compendium or Quarto Volumes ? (b) Which volumes or parts
have you found most useful ? { c ) Have you detected any gross errors
in the eleventh census and if so, what are they? (d) Is there any
special information which you think might be furnished by the
twelfth census and which is not in the eleventh census ?
Report of Cominittee on the Twelfth Census. 3
of the census work met with the heartiest response.
The result is a series of papers by independent authors
upon specific topics which togetlier constitute a very
valuable commentary upon the federal census and sta-
tistical mechod in general. The Committee made no
effort to supervise these contributions, even to the ex-
tent of securing uniformity of treatment or proportionate
length. Nor did the variety of topics demand the same
kind of treatment. Each author was obliged, therefore,
to interpret, according to his own notions, the general
plan of the Committee as outlined in their letter, and to
carry it out as the nature of the subject allowed. While
the essays vary in length and in method yet each will be
found complete in itself and following the central idea,
viz. : a review of the method and results of the eleventh
census with a view to furnishing suggestions regarding
the scope and method of the next. Each author is re-
sponsible for his own assertions, both of fact and opin-
ion, and in no case should the Committee be held to in-
dorse the views or conclusions of the contributors. The
Committee believes, however, that all the essays have
been written without personal bias or prejudice and with
a sincere desire to advance the interests of science and
of good statistical method in our census work.
The Committee has not considered critically all the
points raised in these elaborate papers but submits the
following general conclusions :
I. Throughout the papers, there is criticism not so
much of the accuracy of the census returns as of the
treatment of the data and of a lack of continuity from
census to census. Both defects we believe to be largely
due to the insufficient time allowed by law for preparing
plans and schedules. Among the most effective means
of overcoming these difficulties are the establishment of
4 Avierican Economic Association.
a permanent census organization, which this association
has already advocated, and its subordination to civil
service rules.
II. The Committee believes that the work of the
census is seriously impeded by the number and variety
of the investigations ordered, and that in consequence
fundamental inquiries cannot receive adequate attention.
A number of subordinate inquiries might advantageously
be transferred to established bureaus or departments
which are equipped Vv^ith expert agents and some of
which now publish annual volumes of kindred statistics.
By this means the duplication of reports would be
avoided or minimized; and with legislation giving such
offices power and means to secure adequate returns, the
results would be more satisfactory. The following sub-
jects might be transferred to the offices named : Irriga-
tion to the Department of Agricultiire or the Geological
Survey ; Fisheries to the Fish Commission ; Mineral
Industries to the Geological Survey ; I^and Transporta-
tion to the Interstate Commerce Commission ; Water
Transportation to the proper bureau of the Treasury
Department ; Statistics of Schools to the Bureau of
Education ; Indians (except their enumeration) to the
Bureau of Indian Affairs ; Real F,state Mortgages to the
Department of Ivabor.
III. The following analysis of various classes of de-
fects or weaknesses in method which have been empha-
sized by the writers of the papers may be suggestive.
I. The lack of comparability in the data from census
to census. This is not in itself a defect provided that
the successive census enumerations represent improve-
ment. It is discussed in several places as follows : the
grouping of occupations, especially the inclusion of
miners first under manufactures, then under agriculture ;
Report of Committee on the Twelfth Census. 5
the classification changes also in minor points. (Mayo-
Smith) ; the impossibility of comparing employment of
children in the tenth and eleventh censuses on account
of the different age classification. (?iIayo-Smith) ; in the
statistics of manufactures, changes in the definition of
capital. (North) ; difEerences in methods of estimating
national wealth. (Plehn).
2. The lack of co-ordination. After the census of
population, the most important work of the census is
devoted to statistics of the productive industries — agri-
culture, manufactures, mining, and fisheries. These in-
quiries shijuld be more closely associated in method of
presentation with one another, so that more of the facts
available in one might be available in the others, as for
instance the number of persons employed, the capital
invested, the wages paid, etc. A still further lack of
uniformity is found in the methods of tabulation pur-
sued in the different volumes. The general geographi-
cal groupings of the states adopted in the volumes on
Population should be preserved throughout the other
volumes, with special groupings for particular condi-
tions. The lack is also seen in the relation of different
branches (^f investigation. For instance, facts are asked
with regard to criminals which are not asked in regard
to the general population. (Falkner). The statistics of
school attendance are not adequately compared with
similar statistics published in the monograph on Edu-
cation. (Dewey). Figures for persons employed in
manufacture given in the occupation statistics do not
accord with those given in the volume on Zslanufactures.
(North).
3. Faults of Method.
a. Certain investigations relating to matters of the
greatest interest fail to give adequate results because the
6 American Economic AssociaHon.
basis of the inquiry is at fault. In this class belong all
attempts to secure the annual rate for crime, births, and
deaths by direct enumeration at a given time without
recourse to registration or other continuous records.
(Falkner, Wilbur, Fisher). The inquiry as to months
unemployed during the census year is of a similar char-
acter. (Mayo— Smith).
b. Questions which cannot be answered, such as degree
of intermixture of white and negro blood. (Ripley).
c. The tabulations are in some cases omitted, in some
defective, and in some over-elaborated, e. g.^ relation to
head of family (Holmes), language of those who do not
speak English (Dewey), nativities of the foreign-born
illiterate (Dewey), number of the dependents in relation
to those employed (Mayo-Smith).
d. There are certain faults of classification which are
found in both schedules and tabulations, e. g., statistics
of occupations, especially distribution of " laborers not
specified " (Mayo-Smith), classification of the size of
farms (Stone), statistics of taxation and wealth (Plehn),
municipal receipts and expenditures (Gardner).
4. Faults in the textual analysis of the figures. An-
alyses which attempt to show cost of production or the
relation of capital to product, or an average wage
(North, Steuart, Ford, Bullock). Comparisons which
disregard the varying sex and age constitution of the
different sections of the country and the different ele-
ments of the population, e. g:, for crime (Falkner),
education (Dewey), pauperism (lyindsay), occupations
(Mayo-Smith), registration and non-registration areas
(Wilbur).
IV. The Committee congratulates itself and the
Association upon this noteworthy collection of papers,
Report of Committee on the Twelfth Census. 7
the result of the scientific zeal and effort of so many
men. It would recommend to the Association the
immediate publication of the same as a Monograph/
and believes that such publication will bring honor on
the Association and will advance science.
Richmond Mayo-Smith,
Walter F. Willcox,
Carroll D. Wright,
Roland P. Falkner,
Davis R. Dewey,
Committee.
' At the meeting of the Association, December 27-29, 1898, to which
this report was presented, it was resolved by the Council to print the
papers as a Monograph, and in fulfillment of that order the present
work is published.
POPULATION.
Area, Population, Birthplace, Migration and Conjugal
Condition.
Area} — The area of a country means not the number
of square units of surface it actually contains, but the
number it would contain if every part lay exactly at
the level of the sea with no allowance for elevation or
irregularities of surface. The area of any considerable
portion of the earth's surface, such as a state or county,
is measured not on the earth itself but on a map repre-
senting it and hence the accuracy of the measurement
depends upon that of the map. Within the United
States all degrees of accuracy in surveys and maps may
be found from the brilliant results achieved by the
Coast and Geodetic Survey to the uncertainty in the
location of the boundary lines between Virginia and
West Virginia or around Alaska, an uncertainty which
leaves ample room for an error of some hundreds of
square miles in the former case and of some thousands
in the latter. In general it is probably true that the
boundaries of the country are located and mapped
more accurately than those of the states, and these again
more accurately than those of the counties. Hence the
confidence to be felt in an ofHcial statement of the area
of a part of the United States varies with the extent of
territory, the larger it is, other things equal, the less the
probable margin of error. This country contains no
island states but on its borders are eight island counties,
two on the Pacific coast, two in the Great L/akes, and
'As the writer has treated the subjects of Area, Population, and
Density of Population at greater length in recent publications of the
Association, he may refer to American Economic Association, Studies,
:2o^ -257 and 385-455.
Area, Population, Birthplace, etc. 9
four on the Atlantic. Six of these have been measured
by a competent expert on the accurate maps of the
Coast or Lake Surveys and the results given out by the
Census Office in 1890' depart from his conclusions by
from five to thirty-one per cent. The area of Long
Island, including adjoining islands, is given as 1007
square miles, while its true area is -within one per cent of
1353.8. It would have been helpful to students if the
facts regarding the determination of areas and the degree
of confidence to which they are entitled had been men-
tioned in the publications of the Census Office.
Population. — The population of the earth as a whole
is an unambiguous phrase, for it can mean nothing else
than the number of people living on the earth. But
the phrase, population of a countrj', demands definition
of the word country before it is clear. Country like
continent or island may mean a certain part of the
earth's land surface or like family or state it may
mean an organized group of human beings. In the
former sense one ma)' speak of the area of a country
but not of the area of a tribe, in the latter sense one
may speak of the opinion of a country but not of the
opinion of an island. In the phrase, the population of a
country, as popularly understood neither of the two
meanings is excluded. If country means only a certain
portion of land surface, the relation its population would
sustain would be merely that of physical presence. If
country means also an organization of human beings
various other relations may be conceived such as domi-
cile or citizenship. In the former sense of country its
population is the number of human beings on it at a
certain moment, in the latter sense its population is the
number of residents. The latter is the usual popular
1 Eleventh Census. Bulletin 23,
10 America7i Economic Association.
meaning of population, the former is its technical and
scientific meaning, for if a word is to be used for pui'-
poses of scientific investigation, it must be susceptible
of such definition as to facilitate the inclusion or exclu-
sion of any case that arises. The test of physical pres-
ence or absence at a certain moment can be easily and
accurately applied, the test of residence is often a puzzle
even to the courts and turns largely upon a careful bal-
ance of probabilities regarding intent. Hence the trend
of European practice has been to define population for
census purposes by physical presence, but in this regard
American custom follows popular usage and the popula-
tion of the United States means the number of inhabi-
tants on the census day.
The word population is used in the census volumes
in three senses : (i) all the inhabitants of the country ; (2)
all except those on Indian reservations or in Alaska ; (3)
the inhabitants of the states alone, excluding also the
territories. These are called respectively the total or
aggregate population, the general population and the
constitutional population. It would increase the value
of the twelfth census if the suggestion made in the
Eleventh Census ' could be adopted and the first and
second meanings made to coincide by including the
people on reservations under the general population.
Probably the best test of the accuracy of a census is
its agreement with the results of previous and subse-
quent counts. Over one-fourth the people of the United
States (twenty-seven per cent) have been counted by
state authority since 1890 and a comparison of these re-
sults shows that the last federal enumeration was prob-
ably within one per cent of the truth. I believe that
the faults of census legislation and administration have
'Population, i: c.
Area, Population, Birthplace, etc. ii
impaired public confidence in the results here considered
more than the facts warrant.
Density of Population. — The density of population
means the number of persons to a unit of surface and
thus is an abstract measure of the isolation, proximity
or crowding of the population. The smaller the di-
visions of a country for which the area and population
are known, the more detailed and fruitful the study of
the density of population may be made.
The census authorities might consider the wisdom of
ordering in connection with the twelfth census a
special study of cities in the United States above a cer-
tain limit of size, say 25,000. If this were done a
careful determination of the density of population of
each as a whole, and where possible by wards, would lead
to important results. The effort in that direction made
by the eleventh census, the preliminary results of
which appeared in Bulletin 100, was apparently not
carried to completion and the only inferences that can
be drawn from the census volumes regarding the density
of population of our cities by wards are to be gathered
from a table showing the number of persons to a dwell-
ing in each ward of every city.' A dwelling was de-
fined ^ as any building or place of abode in which any
person was living. A tenement house was considered
one house but a building with a dividing partition wall
and separate front doors was two or more dwellings.
In New York city there were over eighteen persons to
a dwelling while Hoboken had thirteen, Holyoke, Mass.,
eleven and no other city large or small more than ten.
In the cities of the United States there were twenty-eight
wards with over fifteen persons to a dwelling. Of the
1 Eleventh Census. Compendium, i: S80-897.
^ Eleventh Census. Instructions to Enumerators, 19.
12 American Economic Association.
twenty-four wards in New York, twenty were among these
twenty-eight most crowded wards in the country, while
of the eight remaining, one wad in Brooklyn and two in
Hoboken. The fourteen most crowded wards in the
country measured by this test are all in New York. If
the next census should decide to make a study of the
density of population of our cities as wholes or by wards,
it might consider the wisdom of deducting from the total
area of each city the amount occupied by water sur-
face, parks, streets, etc., thus arriving at the built-up
surface. That such an effort if successful would result
in very different figures and order of density from that
reached by the ordinary method is shown by the follow-
ing table for ten European cities.'
Density per acre Density per acre
City. of total area. of built-up area.
Genoa 23 378,
Berlin 77 266
]\Iilan 60 261
Vienna 53 238
Venice 98 215
Paris llS 159,
Florence 16 144,
Turin 62 1 19
Hamburg 27 107,
Dresden 31 104,
In the preceding figures the error committed in Bulle-
tin 100 of the eleventh census has been avoided at
least for the Italian cities and the built-up area has been
compared with the population living upon it and not
with the entire population of the city.
Center of Population. — This concept is defined as
" the center of gravity of the population of the country
'^Journal de la SociHe de Statisiigue de Paris, 25 : 486 quoting
Annales de Statisiigue du Royaiime d'ltatie, vol. 9 ( 18
Area, Population, Birthplace, etc. 13
each individual being assumed to have the same weight."
It seems open to some objections. Under tlie definition
given the center of the world's population would be a
point probably nearer the center than the surface of the
earth. Granting that this is not consistent with the ex-
planation made in an earlier census that the country (or
earth) is treated as a plane surface, it may still be urged
that to regard all individuals as of equal weight and to
assume that the influence of each in determining; the
situation of the center of population increases with his
distance from the center involve very questionable
postulates. Statistical arguments constantly exaggerate
the resemblances between physical and social phe-
nomena. The individual like the atom is counted
always as one, never more or less. While individuals
differ in physical weight, they vary far more in social
influence. A physical body may be controlled by
gravity, a population is directed by public opinion. In
fixing the center of gravity of a physical mass a unit
gains power by remoteness, but in forming the public
opinion of a social group a unit loses power by the .same
fact. If the center of population is to be accepted as an
admi-ssible social concept rather than an illegitimate
transfer of a physical notion, its definition in my judg-
ment should be changed. The residents of Hawaii or
the Philippines should not have increased influence be-
cause of their remoteness. To be true to social condi-
tions their influence should be deemed less. But as no
measure of this diminution of influence might easily flnd
acceptance, the notion of the median point of population
might be substituted for that of the center. This is a
point such that half the population of the country lies
east and half west of its meridian, half north and half
south of its parallel. It oft'ers the practical advantage
14 American Ecotiomic Association.
of being far easier to locate than the center/ and also, I
believe, the advantage of being nearer the average man's
interpretation of the term.
Birthplace. — Before seeking to interpret any census
figures, effort should be made to determine the degree of
confidence to be placed in them. An error in the state-
ment of birthplace might arise from ignorance or from
intention. It is not improbable that among the negroes
and the more ignorant native whites an appreciable pro-
portion did not know the state in which they vv'ere born.
- Many immigrants, especially such as came in childhood,
may not have known in what country they were born.
Other immigrants, who had become Americanized, may
have misrepresented the facts deliberately to the enumer-
ators. It has been estimated that the latter personally
met about one person in seven. If so, the information
regarding the birthplaces of the other six-sevenths must
-^lave been derived second hand and hurriedly. Such
considerations lead one to conclude that errors in the re-
turns of birthplace may have been common. Can any
evidence in favor of or against this possibility be derived
from analyzing the figures ? Birthplace and birth time
are related facts. If one does not know his birth time,
and so his age or the ages of the family for which he is
answering, it would afford some support for the belief
that he may not be accurate in returning birthplace.
The degree of inaccuracy in the return of ages may be
estimated from the figures themselves. When an age is
incorrectly reported, it is likely to appear as a round
number, most often a multiple of ten, less often as an
odd multiple of five, least often as a multiple of two but
not of ten. The evident errors in the table of ages may
^ In 1890 it was about seventy miles northeast of the center of popu-
lation and near the western boundary of Ohio in Darke county.
Area, Population, Birthplace, etc. 15
be corrected with more or less success by mathematical
processes. A study of the table shows that persons are
more apt to misstate tbeir age as they advance in years.'
Probably the same is true of birthplace. In measuring
the tendency in various states and social classes to con-
centrate on certain years of age I have employed the
following method : The entire number of persons be-
tween twenty-eight and sixty-two years of age inclusive
was found from the age tables. Then it was assumed
that the true number of persons who were thirty, thirt)''-
five, forty, forty-five, fifty, fifty-five or sixty years of age
would be one-fifth of the former sum. The sum of those
actually reported at one of these seven ages was also
derived from the tables, and was found uniformly to
exceed the true number as computed. The percentage
of excess gives an approximate measure of the inaccuracy
with which the ages of adults are reported. From such
a table it appears that the ages of foreign born whites
are reported with about double the inaccuracy prevalent
among native whites, and those of negroes with about
double the inaccuracy of the white immigrants. Hence
it seems probable that statements regarding the birth-
place of negroes are to be given less confidence than
those regarding the birthplace of whites. In favor of
the accuracy of tlie returns of birthplace of the foreign
born it may still be urged that the country of birth is
less likely to slip the memory than the year or the state.
It may be granted that, other things equal, foreigners
report the country of birth more accurately than natives
do the state. But this can hardly outweigh the greater
' ignorance of the foreign population. Foreigners or cer-
tain classes of foreigners have a deeper and more wide-
spread prejudice to encounter than that against the
1 Am. Stat. Assn. Publications 5 : 133, (1896).
1 6 American Economic A ssociatio7i .
natives of any American state, and this feeling would
create or strengthen the motives for misrepresentation.
Some further evidence ma)- be derived from the figures
for native and foreign born whites by age and sex. In
1880 among every 10,000 native whites 5,051 were
males. In 1890 among every 10,000 native whites ten
years of age and over 5,067 were males. The latter
class must have been the survivors of the former, and
yet the proportion of males has increased by 16 in
10,000. If this were correct it would be due to a
higher mortality of females. Assuming that the average
number of native whites during the decade was the
arithmetic mean between the number in 1880 and the
number over ten in 1890, and that the annual number
of deaths v^'as one-tenth the decennial decrease, the
death rate for males was 10.2 and for females 10.9. It
seems doubtful whether such an excess in the female
death rate is more probable than the return of a certain
number of foreign born males as native. The excess of
males in 1880 among the native whites increased in
1890 among the survivors by nearly 75,000. In 1880
there were nearly a quarter of a million more male than
female children under fifteen among the native whites.
In 1890 the excess between ten and twenty-five had
fallen to le,ss than sixty thousand. But in 1880 among
the native whites between fifteen and fifty there were
only sixty thousand more males than females, while in
1890 the excess of native white males between twenty-
five and sixty was a third of a million. If this surpris-
ing distribution of the excess be due in an appreciable
degree to misstatements of foreign born males, it should
be especially apparent in the northern and western states
where the foreign born whites are over one-fifth of the
Area, Population, Birthplace, etc. 17
total white population, and of little influence in the
southern states, where they are less than one twenty-
fifth. Above the age of twenty the proportion of males
among the native whites in the northern states is uni-
formly greater than in the southern states, as the follow-
ing table shows :
PROPORTION OF MALES IN 1890 AMONG NATIVE WHITES.
Males in 10,000.
Southern Northern Excess in
Age gronp. states. states. northern states.
20-24 4981 5003 22
25-29 4984 5070 86
30-34 5142 5163 21
35-44 5125 5167 42
45-54 4944 5095 151
55-64 4987 5160 173
65 -I- 5032 5021 -II
On the whole it seems probable that a certain number
of foreign born residents were reported as natives, that
this was more common among males than females either
because they were more numerous, less informed, less
veracious, or less likely to be seen personally by the
enumerators and so to render accurate information.
Many a boarding-house keeper must have reported for
lodgers whose birthplace was unknown. This tendency
to call oneself a native apparently increases with age
and the progressive Americanization it involves.
Proportion of Foreign born Population in the United
States. — It appears from the following table that no other
country in the northern hemisphere has received so large
a portion of its population from abroad. The percent-
age of foreign born in the population of various countries
was as follows :
Percent of
foreign born.
32.6
30.0 (?)
25-3 (?)
14.8
13-4
7.6
6.4
2.8
2.8
2.2
1-7
1.6
I.I
I.O
.6
•5
■4
18 American Economic Association.
PERCENTAGE OF FOREIGN BORN.
Country. Date.
Seven Australasian Colonies 1891
Uragiiay ?
Argentine Republic 1895
United States l8go
Canada 1891
Luxemburg 1890
Switzerland 1888
Belgium 1890
Bulgaria 1888
France 1891
Netherlands 1889
Greece (1879)
United Kingdom (1891)
Germany (1890)
Austria-Hungary (1890)
Sweden 1890
Spain 1887
Italy (l88l)
The United States have about half the proportion of
foreign born found in three countries of the southern
hemisphere, about the same proportion as in Canada and
about twice the proportion of the European states with
most foreigners, viz., Switzerland and the diminutive
Grand Duchy of Ltixemburg, smaller and less populous
than Rhode Island.
Proportion of Native Population in Foreign Countries.
— The converse of the number of foreign born in the
United States is the number of American born in foreign
countries. Our twelfth census might well attempt, as
do those of some other countries, to report the number of
Americans by birth residing outside the United States,
and as an effort in this direction the following table has
been compiled mainly from the census reports of foreign
countries :
Area, Population, Birthplace, etc. 19
PERSONS OF AMERICAN BIRTH I,IVING ABROAD.
Country of Residence. Date. Number.
Canada 1891 80,915
United Kingdom 1891 31,412
Germany 1890 17,550
Seven Australasian Colonies 1891 8,139
Austria-Hungary 1890 2,099
Hawaii 1890 1,928
Sweden 1890 1,482
Italy 1881 1,286
India 1891 1,091
Switzerland 1888 986
Chile 1885 924
Japan 1890 899
Belgium 1890 414
Costa Rica 1892 204
Korea 1895 90
Samoa 1895 26
Total 149,445
The two countries not on the list which have probably
the greatest number of American born are France and
Mexico. In France there were, in 1886, 10,253 persons
whose nationality was returned as American North or
South. It may be fairly assumed that the number of
persons born in the United States and residing in France
in 1 89 1 was between five and ten thousand.
The absence of any figures for Mexico reduces one to
an estimate. For this purpose I have assumed that the
Americans in Mexico bear the same proportion to the
Mexicans in the United States that the Americans in
Canada do to the Canadians in the United States. This
gives the proportion : 980,938 Canadians in the United
States are to 80,915 Americans in Canada as 77,853
Mexicans in the United States are to the estimated
number of Americans in Mexico, which is thus found
to be 6,442. If this should be deemed too small an
estimate, attention may be called to the barriers of Ian-
20 Atnerican Economic Association.
guage and of a lower standard of life for the working
classes south of the Rio Grande, and also to the fact
that in all the eighteen counties along our Mexican
frontier, from which emigration would mainly go out,
there are fewer than one hundred thousand (97,183)
natives of the United States, and over one-fourth of them
(25,577) are in southern California, where the motives
for crossing the Mexican frontier must be weak. On
the v/hole it seems probable that the natives of the
United States who have emigrated to foreign countries
are between 165,000 and 175,000, and I will assume the
number of 170,000.' To find the proportion this consti-
tutes of our total native population the number of
natives living in the country n]nst be known. The
census, which reports 53,372,703, does not include the
persons in Indian territory or Alaska, or on reservations.
One may assume tliat all Indians and the negroes of
Indian territory are natives. Of the persons of other
races living with Indians on reservations 98 per cent are
in Indian territory or Oklahoma, and may most fairly be
compared with the white population of Texas, where
91.3 per cent are native. Hence to the number just
given the following may be added :
Indians on reservations or in Indian tei-ritorj^ 187,447
Negroes in Indian territory iS,6',6
91.3 per cent of the remaining 117,381 residents of
Indian territorj' or reservations 107,200
Natives in Alaska 15,389
Total additions 330,672
Natives returned by census 53,372,703
Natives abroad 170 000
Total natives of United States 53,873,375
Percent, of total natives who have emigrated .32
^The 18,000 "Americans" mentioned in Liberia must be mainly
African born descendants of emigrants.
Area, Populatio7i, Birthplace, etc. 21
This table shows that only about one in three hundred
natives of the United States has emigrated, while as
seen before more than one in seven of the resident pop-
ulation is an immigrant. Probabl}' no country has so
large a proportion of immigrants and at the same time
so small a proportion of emigrants as the United States.
No direct and conclusive information upon this point
for Argentine Republic and Uraguay is obtainable, but
it may be noted that in twenty-one years, 1873-1893,
the emigrants from the Argentine Republic were over
half a million and more than one-third of the immi-
grants, while in Uraguay the emigrants for the six
years, 1884—90, were nearly three-fifths as many as the
immigrants.'
In the case of natives of the seven Australasian colo-
nies the Scotch census of 1891 reports the number found
in Scotland, but similar information is lacking in the
English and Irish censuses. On the assumption that in
England and Ireland the ratio of natives of Australasia
to all natives of British colonies and India was the same
as it was in Scotland,'- there were over twenty thousand
natives of Australasia in the United Kingdom, two-thirds
as many as the natives of the United States there.
Taking into account the enormous difference in the
number of natives of the two regions the return current
from Australasia to the United Kingdom is about four-
teen times as strong as the return current from the
United States to the mother country.
Of the total number of natives of Canada in Canada
' 72,704 emigrants and 126,391 immigrants.
^Natives of Australasia in Scotland (1891), 2,063. Natives of all
British colonies, including India, in Scotland, 13,607 ; in England and
Wales, 111,627 ; i" Ireland, 8,430. Estimated natives of Australasia
in United Kingdom. 20.265. Number in India, 845 ; in United States,
5,984; in Au.stralasia, 2,561,865. Minimum percentage abroad, i.o.
22 ATnerican Economic Association.
and the United States nearh' nineteen per cent are in
this conntr)-. It seems clear, therefore, that when both
immigration and emigration are considered the United
States has gained more and lost less population than any
other country.
A study of the table giving the natives of the United
States abroad shows that probably no country in Europe
or Asia has received from this country a larger immigra-
tion than it has contributed. The same is true of Africa
except for L,iberia, which may be regarded as a localiza-
tion of the return current attendant upon all strong
currents of migration. The adjacent countries of this
continent have also sent hither many more natives than
they have received in return. Lack of data makes a
comparison for the West Indies, and Central and South
America impossible, but it is not unlikely that in every
important case, except possibly the Argentine Republic
and Uraguay, the northward current has been the
stronger. In fact the only direction in which the
United States has sent a demonstrably stronger current
of migration than it has attracted has been over the
Pacific to Hawaii and the Australasian colonies.
From scattered data relative to earlier foreign censuses
it seems probable that the emigrants from the United
States increased during the last decade more slowly than
the native population.
Foreign born in Americaii cities. — The high propor-
tion of foreigners in the urban population of the United
States is deemed by the census proof of a tendency to
cling to the cities. Thus it is said : " If the proportion
of the foreign born in the principal cities is contrasted
with the proportion of the foreign born in the country
at large, a very fair measure is obtained of their appe-
tency for urban life " and " the element of foreign birth
Area, Population, Birthplace, etc. 23
seeks the cities with far greater avidity than does the
element of native birth.'" But it appears that "of all
the nationalities considered, the Mexicans showed the
least appetency for nrban life."^
The last statement suggests that the difference may be
in the circumstances rather than the people. Natives
enter the United States by birth and this occurs mainly
in the country, foreigners enter it by migration and this
occurs mainly at the city ports. While the feebleness
of infancy is a barrier to the migration cityward of the
former, ignorance of the language and customs of the
country confine the great majority of foreigners for a time
to some colony of their countrymen in a great city. Dis-
persion of either element from the place of arrival is a
gradual process and is likely to be overlooked, but such a
dispersion of the foreign born from our cities is in rapid
progress. The increase of foreign born in the country
during the last decade was 2,570,000, a number that
measures the excess of the influx over the losses by death
or emigration. Nearh- all entered our cities and were
added at the start to our urban population. In 1880 the
foreign born population of our fifty largest cities was
2,330,000 and of the rest of the country 4,350,000. As-
suming that all immigrants came to these cities and stayed
there, the number in them in 1890 would have been
2,330,000 plus 2,570,000 or 4,900,000 plus the number
of deaths among the foreign born immigrants elsewhere
in the countrv. If there were any current out from the
cities, it must have resulted first in supplying the losses
from death among the rural foreign born and then in in-
creasing the number, while its effect in the cities would
appear in a decreased number of foreigners. Just these
'Eleventh Census, Population, irlxxxix.
■"Ibid., cli.
24 American Economic Association.
results appear. Instead of more than 4,900,000 foreign
born in these fifty cities in 1890 there were only
3,441,000. Instead of less than 4,350,000 in the rest of
the country there were 5,808,000. While the additions
were in the first instance to the cities and the substrac-
tions of death were evenly distributed, the adjustment
went on so rapidly that foreigners outside these cities in-
creased 34 per cent and within them only 48 per cent.
This would seem to indicate that the proportion in our
large cities was increasing faster than elsewhere, but it
must be remembered that these cities have had a very
rapid growth, of which the arrival and stay of immi-
grants have been only one aspect. These cities gained
in population 43.5 per cent during the decade and the rest
of the country only 21 per cent. Hence relatively to
population the smaller cities and rural districts of the
country gained in foreign born population faster than
the great cities ; and the eleventh census when properly
interpreted affords no evidence that between 1880 and
1890 tlie immigrant population as a whole remained
stagnating in our great cities. The following table
gives the figures for tlie fifty largest cities in 1880 and
the same cities in 1890.
FIFTY LARGEST CITIES.
Total Foreign Percent. For-
Population. born. eign born.
1880 7,793.903 2,330,374 29-90
1890 11,184,031 3,441,165 30.77
Per cent of increase 43.5 47.7 .87
REST OF COUNTRY.
1880 42,361,880 4,349,596 10.27
1890 51,438,219 5,808,382 11.29
Per cent of increase 21.4 33.5 1.02
Wide as the difference between city and country is
m
Area, Population, Birthplace, etc. 25
the proportion of foreign born and mucli as the unparal-
leled immigration to our ports between 1880 and 1890
tended to increase it, still the percentage of foreign
born has increased more rapidly in the cities of less
than 56,000 people and the towns and country dis-
tricts than it has in the great cities.
Interstate Migration. — Enormous as the influx of
foreign born into the United States has been, the move-
ment of the native population from state to state is even
greater. The number living in another than their
native state is nearly one-fourth greater than the num-
ber of foreigners in the country, and when these num-
bers are compared with the populations giving rise to
them, the high mobility of the American population be-
comes yet more apparent. A study of these internal
migrations is rendered difficult by the complexity of
the census table.^ This gives the natives of each of fifty-
one territorial divisions residing at the time of the census
in each of forty-nine divisions. A table with twenty-
five hundred entries is too detailed to be intelligible.
For a survey of the subject I have treated the country
as composed of the five groups of states recognized by
the census. The results appear in the following tables :
NATIVES OF NORTH ATLANTIC STATES.
Increase
( + )
Number in
or Decrease
!(-)•
Place of Residence.
18S0.
1890.
Absolute. ]
Per cent.
North Atlantic group ___
11,412,303
13,005,694
41,593,391
+ 13-0
South Atlantic group
125,018
141,826
H- 16,808
+ 13-5
North Central group ___
1,684,774
1,550,668
— 134,106
- 8.0
South Central group ___
59,333
68,766
+ 9,433
+15-9
Western group
205,728
13,487,156
308,455
15,075,409
+ 102,727
+49-9
United States _
1,588,253
+ 11. 8
The preceding table shows that the natives of the
> Eleventh Census, Population, i : 560-563.
26 American Economic Association.
North Atlantic group who were living within that
region in 1890 had increased in a decade more than the
entire increase in the country. It follows that the abso-
lute number of emigrants fell. But, as the table shows,
this fall was consistent with a growth of migration to
three of the four other sections of the country. The rate
of increase in the number in the southern states was about
as rapid as the increase at home. In 1880 the North
Atlantic group retained within its limits 84.6 per cent
of its natives, while in 1890 the percentage had risen to
86.3.
NATIVES OF SOUTH ATI^ANTIC STATES.
Increase i
;+)
Number in
or Decrease ( — ).
Place of Residence.
1880.
1890.
Absolute. ]
Per cent.
North Atlantic group
156,467
207,010
+ 50,543
+32.3
South Atlantic group
7,173,979
8,325,844
+i, 151,845
+ 16.I
North Central group
388,560
355,454
- 33,106
- 8.5
South Central group ___
758,271
674.942
- 83,329
— II.O
Western group
32,437
53,642
9,616,872
+ 21,205
+65.4
United States .___
8,509,714
+ 1,107,158
-1-13-0
This table shows that the natives of the South Atlantic
states, also, during the last decade manifested a weaker
tendency to migrate. Notwithstanding their total
increase of over a million in the country the number in
the central states north and south was less in 1890 by
considerably above one hundred thousand. On the
other hand the overflow from this group to the North
Atlantic and Western states increased by over seventy
thousand. The increase in the current to the North
Atlantic states was remarkable, that region having re-
ceived by 1890 sixty-five thousand more than it returned,
while in 1880 it had received only thirty-one thousand
more.
Area, Population, Birthplace, etc.
27
NATIVES OF NORTH CENTRAI, STATES.
Increase ( + )
Number in
or Decrease { — ).
Place of Residence.
1880.
1890.
Absolute Per cent.
North Atlantic group
101,879
138.419
+ 36,540 +35-9
South Atlantic group ___
48,310
67,897
+ 19,587 +40.5
North Central group
11,807,697
15,685,746
+3,878,049 +32.8
South Central group
241,129
357,105
+ 115,976 +48.1
Western group
257,144
609,398
16,858,565
+ 352,254 +137.0
United States .
12,456,159
4,402,406 +35.4
When one considers the very rapid increase in the
natives of this group of states, it is not surprising to find
that the number of them in each of the other divisions has
risen during the decade. The unexpected result of tire
preceding table is the proof it affords that emigration
from the North Central states to each other group has
grown at a higher rate than the total native population
of the group. The net gain of the North Central group
from the North Atlantic fell in ten years from 1,583,000
in 1880 to 1,412,000 in 1890, or over ten per cent.
Similarly the net gain from the South Atlantic states
fell from 340,000 to 288,000, or fifteen per cent, and the
net gain from the South Central group fell from 310,000
to 195,000, or thirty-seven per cent, wliile the net loss to
the Western group increased from 243,000 to 585,000.
NATIVES OF SOUTH CENTRAL STATES.
Increase ( + )
Numbers in
or Decrease ( — ).
Place of Residence.
1880.
1890.
Absolute. Per cent
North Atlantic group ___
16,066
20,963
+ 4,897 +30.5
South Atlantic group ___
74,593
88,194
+ 13,601 +18.2
North Central group ___
551,715
552,193
+ 478 + .1
South Central group ___
7,583,235
9,465,322
+ 1,881,087 +24.8
Western group
52,049
94,166
+ 42,117 +80.9
United States
8,277,658
10,220,838
+ 1,943,180 +23.5
This group, like the two Atlantic divisions, is charac-
terized by a decreasing mobility of population. The
28 American Economic Association.
increase of natives remaining within the group has been
a little faster than their total increase anywhere within
the country'. But in this case migration to the North
Atlantic and ^^^estern states has grown faster than the re-
turn current to the South Atlantic group, while the
current north has just filled the gaps left by death.
NATIVES OF WESTERN STATES AND TERRITORIES.
Increase (H-)
Numbers iu or Decrease ( — ).
Place of Residence. iS8o. 1890. Absolute. Percent.
North Atlantic group __. 6,086 9,231 -t- 3,i45 +51-7
South Atlantic group 1,008 i,95i + 943 +93-5
North Central group Hi465 24,684 -f 10,219 -I-70.6
South Central group 3,079 5,855 H 2,776 -fgo.i
Western grotip 720,224 1,152,636 +432,412 --[-60.0
United States 744,862 1,194,357 -f- 449,495 +60.4
In the Western as in the North Central states the
mobility of the native population has not fallen. The
very small return current to the southern states had
nearl)' doubled during the decade, while the much more
important one to the North Central states has outstripped
decidedly that of the natives of the group. The low
average age of the natives of this group makes the re-
sult the more noteworthy.
From the data in the preceding tables the proportion
of the natives of each group in the country who were
living without the group in 1880 and 1890 may be
computed.
Group. Percent, of natives living outside in
1880. i8go.
North Atlantic 15.4 13.7
South Atlantic 15.7 13.4
South Central 8.4 7.4
North Central 5.2 7.0
Western 3.3 3.5
it seems that the difference between the groups is
Area, Population, Birthplace, etc. 29
diminishing, long distance migration from the Atlantic
and Gulf states falling off, while that from the interior
and Pacific states is growing.
The following table prepared from the figures of the
preceding shows the changes of migration in the groups :
Percent of total Natives of Groups residing in
Group.
North Atlantic-
i88o_
South Atlantic —
i88o___
North Central—
1880. _
iSgo...
South Central—
i88o__
i890_^
Western —
i88o_„
l8qo__
state of
some other
outside
birth.
state of group.
group.
Total.
76.8
7.8
15-4
100.
7S.5
7.8
1.3-7
100.
78.2
6.1
15-7
100.
81. 1
5-5
13-5
100.
76.9
17.9
5-2
100.
75.8
17.2
7.0
100.
80.1
"•5
8.4
100.
82.3
10.3
7-4
100.
88.5
8.1
3-4
100.
86.9
9.6
3-4
100.
Natives of the Western states and next to them of the
Southern states remain in greatest proportion in the state
of birth, while in the interior they leave the state most
frequently. In the Central and Western states the more
common form of migration has been within the group,
while along the Atlantic it has been to some state
beyond.
Conjugal condition. — Conjugal Condition means the
relation of the population to the social institution of
marriage. At the date of the census each person in the
country was either married or not married. The not
married either had never been married or had been but
were no longer. The marriages of the last class must
have ended either by death of the other party to the
30 American Economic Association.
marriage or by the dissolution of the union through a
legal divorce. From the point of view of conjugal con-
dition, therefore, the population falls into four and only
four classes : (i) married, (2) single, (3) widowed, (4)
divorced.
The question whether at a given time A and B were
married is often difficult for a court to determine and in
not a few instances the persons themselves must be mis-
taken about the facts. This would be true more often
of the third persons by whom the information was some-
times furnished. In this subject ignorance is thus a
source of some error, but probably a less important
source than conscious misrepresentation. Motives to
misrepresent would often affect the two sexes in oppo-
site directions tempting the mother of an illegitimate
child to report herself as married and the husband who
has abandoned his wife to call himself single. It is
probably for this reason in part that most censuses
report the married women outnumbering married men.
Thus in the United States among the persons of negro
descent there were 12,181 more married women than
men. It is not likely that many of these were married to
white men. The large majority, I believe, is explicable
as incorrect returns. The motives to call one's self
single or married when one is divorced would probably
appeal to a large proportion of all persons divorced
and I doubt that any serious reliance should be
placed upon the returns of divorced persons. There
were probably not far from twenty-nine thousand
divorces granted in the United States in 1890. It is
not likely that divorced persons would remarry so
rapidly that the actual number at 2mj day, e. g.^ June
I, 1890, would be only 2.3 times the number of persons
annually divorced. The number of divorced persons re-
Area, Population, Birthplace, etc. 31
ported by a census is a function of two variables, the
actual number of such persons and their average veracity,
and the latter is so important that we have hardly any
warrant for inferences from the reported to the actual
number. The proportion of divorced persons in cities is
not less than in the country at large as the census de-
clares,^ but for obvious reasons veracity on such topics in
cities is less general. Still as persons have no ground to
return themselves as divorced unless they think them-
selves so, the number of divorced persons returned may be
regarded as a minimum limit to the true number. With
these qualifications the returns of conjugal condition
may be accepted as substantially correct.
As the conjugal condition of the population of the
United States was not reported prior to 1890 comparison
with earlier national censuses is impossible and one is
compelled to rely upon state censuses. These show
that the proportion of the total population which is
married has tended to increase except in Massachusetts
and Rhode Island.
PERCBNTAGE OF TOTAI, POPULATION WHO WERE MARRIED.
Year. Iowa. Mass. Mich.* New York. Rhode Isl.
1855 ? ? 34-1 3fi-i ?
1865 ? ? 36.2 37.5 ?
1875 ? 39.1 38.9 37-8 38.S
1885 36.5 3S.1 40.4 ? 37.7
1890 36.5 37.7 40.0 38.4 37.5
1 895 37.2 37-7 40.3 ? ?
* The stale census of Michigan is taken four years after the national census
i. e., 1854, 1864, etc.
While no clear results appear from the table, yet in
the two states of New York and Michigan in which the
figures extend over about twice the period of the other
states, the tendency has been towards an increase in the
' Eleventh Census Population i : clxxxvii.
32 American Economic Association.
proportion of married persons in the total population.
Probably the majority of states have changed in the
same direction during the period.
The increase in the proportion of married persons may
be due solely to an increase in the adult and marriageable
population. Thus the percentage of married persons in
the population over fifteen of New York state was :
1855 56.3
1865 58.3
1875 56.1
1890 54.0
Down to 1884 the Michigan census did not return the
population above fifteen. In Massachusetts the percent-
age of adults who were married was in 1875, 55.3 ; in
1885, 52.6; in 1890, 51.2; in 1895, 51.3, a decrease of
four per cent in twenty years. From the scattered evi-
dence available it seems probable that the proportion of
adults wlio are married is decreasing.
In foreign countries the proportion of the population
who are married ranges from a minimum of about one-
fourth to a maximum of nearly one-half. Disregarding
India, as not making a part of occidental civilization, the
foreign countries and American states with lowest and
highest proportion of married in their population were :
Percent, married. Percent, married.
Ireland 26.4 Arizona 30.7
Scotland 29.7 Virginia 31. i
Bulgaria 42.0 New Hampshire.. 41.8
Roumania 42.3 Vermont 42.1
In the United States there are two main regions in
which the percentage of married to the total population
is below the average of the country, 35.7. The first in-
cludes all the old slave states, the second all the states
in the western division except New Mexico. The reason
Area, Population, Birthplace, etc. 33
for the small proportion in the southern states is the
large number of children there, but in the western states
a stronger influence is the relative fewness of women.
Comparatively little is to be learned from a study of
conjugal condition, therefore, which does not eliminate
or allow for these differences in age groups or sex dis-
tribution.
The usual method of determining the conjugal condi-
tion of the adult population is to compare the married
persons over fifteen with the total population over fifteen,
and this limit of age is preferable to that of twent}', em-
ployed by the census, both because it facilitates com-
parison with other countries and because it seems un-
wise to fix the age of adult life for this purpose at
twenty, when there are over 330,000 married persons
under that age in the country. Hence in this paper the
limit of fifteen years has been employed to separate the
marriageables from the unmarriageables. In our various
states and territories the proportion of adults who are
married falls between two-fifths and three-fifths of the
population, or more accurately between 41.8 per cent
in Montana and 61.5 per cent in Oklahoma. The
average for the country is 55.3 per cent. There are two
main regions in which the proportion of married persons
is below the average, the more extensive but less popu-
lous area includes all the western division except New
Mexico, the second embraces all the Atlantic states from
Massachusetts to North Carolina, except New Jersey and
West Virginia. As in the east women are in excess
among the adult population, and in the far west men are
much more in excess, it may be that a primary cause of a
low proportion of married persons is found in this dissoci-
ation of the sexes. To test the hypothesis the proportion
34 American Economic Association.
of males in the adult population of each stale has been
found and the states divided into three groups, those
having over six-tenths of the adult population male, those
having between five-tenths and six-tenths male and those
having less than five-tenths male. The first class in-
cludes all the western division except Utah and New
Mexico, and corresponds closely to one great division of
states with low proportion of married persons. The
third class includes all the states touching the Atlantic
from New Hampshire to lyouisiana except Delaware,
Florida and Mississippi. It shows a general agreement
with the other main region of low proportion of married
persons, and the hypothesis that a main cause of few
marriages lies in dissociation of the sexes by interstate
migration is confirmed. It is better, therefore, to study
the conjugal condition of each sex by itself.
The returns of the last censxis make it possible to
study the distribution of early marriages for each sex by
an anal)'sis of the proportion of persons 15-20 or 20—25
who are married. As the number of married men or
boys under 20 is less than 17,000 one must begin for
males with the next later age group, 20-25. Tl'^ per-
centage of men of this age who are married varies from
6.2 in Montana and 7.0 in Wyoming to 35.0 in Missis-
sippi and 36.9 in South Carolina. The average for
the country was 18.9, i. e.^ nearly one man in five between
20 and 25 years of age is married. The position of the
two states with the largest proportion of negroes sug-
gests that early marriages maj' be more common among
men of that race. To test the hypothesis the proportion
married has been computed for each race separately.
The results for the six states with largest proportion of
}•
oung married men are as follows :
*&
Area, Population, Birthplace, etc. 35
Married meu in each loo between
20 and 25 3-ears of age.
State. Whites. Negroes.
South Carolina 25.6 44.6
Mississippi 24.6 42.0
Alabama 29.3 39.5
Georgia 28.0 38.7
Louisiana 22.5 41.5
Arkan.sas 29.1 36.8
Negro males therefore are unusually likely to marry
early.
It is noteworthy that the proportions of married in
the two races do not vary together. If numerous early
marriages of males be an evidence of widespread ability
to live at the standards the people set themselves, the
negroes are most prosperous in South Carolina, Missis-
sippi and lyouisiana, the whites in Alabama, Arkansas
and Georgia. It is also true that the proportion of mar-
ried men among the whites alone in these six states is
far higher than the average for the country as a whole,
or for any northern state. Hence southern whites marry
in large numbers unusually early.
Early marriages of men are most common in the
southeastern states from South Carolina to Louisiana,
and least common in the northwestern states from Min-
nesota to California. But marriages of girls under
twenty are most common in the southwest along the
Mexican frontier and least common in the northeast
from Massachusetts to Maryland. In the United States
as a whole about one girl in ten (9.5 per cent) between
15 and 20 is married, but in Ivlassachusetts the propor-
tion is I in 25, in New Mexico and Arizona about i in 4.
As early marriages of males among soutliern negroes
are far more prevalent than with the whites, one would
naturally expect it to be true also that negro girls under
36 American Economic Association.
twenty are more usually married than white girls of the
southern states. The following tahle has been prepared
for the six states in which early marriages of men were
most common :
state.
South Carolina .
Mississippi
Alabama
Georgia
LjOuisiana
Arkansas
Married girls
ill each
100 between
15 and
20 year.? of ape.
Whites.
Negroes.
13.0
16.9
13.0
'7.7
I5-I
14.9
14.9
17.6
13.0
17.8
20 6
21.5
Early marriages are somewhat more common among
negro girls in each of the states except Alabama, but
the difference is far less than that between the males of
the two races. Even among the whites early marriages
are more common than in any of the northern states
except those of the far northwest, where the scarcity of
women makes their earl)' marriage more genei^al.
Tlie tendency to early marriage on the part of both
sexes is thus decidedly greater in the southern states
than in the northern. This tendency affects both
whites and negroes. Its effects are modified by the un-
equal distribution of the sexes. Early marriages of
men are most common in the south-east because an ex-
cess of women is found there to choose from. Early
marriages of women are most common in the south-west
because of the excess of possible suitors. Early mar-
riages of women are least common in the north-east
because of the deficiency of possible suitors, and early
marriages of men are least common in the north-west
because of the inability of many to find wives. Doubt-
less these statements are subject to modification. The
Spanish American element along the Mexican frontier
probably marries unusually early and the opportunities
Area, Popidation, Birthplace, etc. \\i
in the north-east for women to earn v.ages may induce
many to postpone marriage. Yet the general conclu-
sions of the study are not thereby invalidated.
The census figures make it possible, also, to determine
how large a proportion of those who attain a ripe maturi-
ty of years have never been married.
Among the males between 55 and 65 the smallest pro-
portion of bachelors is found in the southern states of
Arkansas, Alabama and Georgia in whicli 96 out of
every 100 of that age are or have been married. On the
other Iiand in the mining states of the far west less than
75 per cent of the old men have ever been married and
in Nevada the percentage is as low as 62. The small
proportion of elderly bachelors in the south may be due
to the negroes. A study of the facts by race, however,
shows that among the white men of Georgia, Alabama
and .\rkansas it is less common to pass through life un-
married than it is anywhere except among the negroes
of those and perhaps a few other states.
Elderly unmarried women are least numerous in the
predominantly agricultural states of the far west from
the Dakotas to Texas and in the Mormon regions of
Utah and Idaho. In those states only one woman in
twent'S"-five living at the age of 55—65 is still single, in
Utah only one in seventy, and in Oklahoma one in
ninety. Along the Atlantic coast from New Hampshire
to the Carolinas, especially in Rhode Island and North
Carolina, permanent spinsterhood is thrice as common,
and in the two states named one elderly woman in every
ten is still single. The dissociation of the sexes is prob-
ably the main cause of the difference, but mining and
perhaps also industrial pursuits seem to be less fa\-or-
able to marriage than agriculture.
Walter F. Willcox.
Colored Population of African Descent.
Considering the vast number of persons concerned,
and the multitude of economic and social issues in-
volved, it is curious that the colored population of
African descent in the United States should have
excited so little interest among purely scientific olsserv-
ers. From the Civil War dov/n to 1890 scarcely a
single work of note upon the American negro can be
mentioned, conducted upon modern scientific principles,
and unbiased by political, social or religious prejudice.
The negro has long attracted the attention of philan-
throphists and well-meaning humanitarians ; but neither
the economist, the physician, nor the anthropologist
seems to have been alive to the possibilities for research
offered by this great population of seven million negroes ;
nor, on the other hand, have our statesmen appreciated
the necessity of accumulating a fund of reliable infor-
mation from skilled observers, to be used as a basis for
legislation. A problem economic, social, and moral,
second in magnitude to none in the United States is
awaiting consideration ; yet the Indians,' less than three
hundred thousand in number, have attracted in our later
censuses far more attention than the negro. Fortunately
the last few years have witnessed a revival of interest in
this direction, which has already produced noteworthy
results. The Federal Department of Labor, for example,
has recently inaugurated most auspiciously a series of
special investigations ;^ and the Department of Agricul-
' The Xegroes of Farmville, Virginia : a Social Study ; by W. E. B.
DuBois. U. S. Dep't of J^abor, Bulletin, No. 14, 1S98, p. 1-38.
38
Colored Population of African Descent. 39
ture has already published one report at least upon the
subject/ The monograph by F. 'L,. Hoffman, a profes-
sional statistician of high repute,^ is also deserving of men-
tion. These, together with a number of special investi-
gations, to which I shall refer, especially those inspired
by the Trustees of Atlanta University and the Tuskegee
Institute, should also be noted. :\Iore important than
all these, however, in urging the importance of a com-
prehensive and scientific treatment of the varied ques-
tions concerning the negro in our next federal census,
is the recent acquisition of Porto Rico, together with
our interests in Cuba and the Philippine Islands. By
the events of the late Spanish war, we are likely to add
several millions to the number of our colored popula-
tion.
The first question of importance concerns the actual
number of negroes in the United States, irrespective of
their geographical distribution or migration; those mat-
ters we shall reserve for treatment by themselves. No
especial change in the method of enumeration seems to
be called for, by the experience of the eleventh census.
The results obtained in 1890 when compared with those
of 1880, as is well known, firmly established the incom-
pleteness of the returns in the census immediately fol-
lov/ing the Civil War. The fears excited by an apparent
increase of negroes in the United States in the decade
from 1870 to 1880 of 34.9 per cent, as compared with a
growth of the white population of only 29.2 per cent,
were allaj^ed by the total 3a elded in 1890. This proved
' U. S. Dep't of Agriculture. OfEce of Experiment Stations. Bul-
letin, No. 38. Dietary Studies ^nth reference to the Food of the Negro
in Alabama.
' American Economic Association. Publications xi, Nos. 1-3 (1896).
Race Traits and Tendencies of the American Negro.
40 American Economic Association.
at once that the defective enumeration in 1870, esti-
mated by General Walker to be not less than three hun-
dred thousand, was responsible for the error.' The
colored population of African descent manifested in
1890 an increase of but 13.5 per cent; or just about
one-half that of the whites for the entire countr)--.
Even in its most favorable section, in the southern
states, its rate of increase was 10 per cent less than that
of the whites. Its relative proportion of the aggregate
population decreased in the same measure. In two
states only — Mississippi and Arkansas — was any increase
in the proportion of negroes, compared with white, ap-
parent. The whole problem of the American negro at
once assumed a new aspect. Not an inundation of
blacks was threatened for the future ; but so alarming a
decrease in the relative growth of the negro population
as to suggest its ultimate extinction. Attempted ex-
planations for this phenomenon of retrogression will
concern us in a later paragraph.
vScarcely less important than the total enumeration by
states and territories are the facts of geographical distri-
bution of the negro population, and its present tenden-
cies towards migration. It is of profound importance for
the future amelioration of the economic and social status
of the negro to ascertain whether the black population is
massing by degrees in the Gulf states, or is tending
gradually to become disseminated throughout the entire
country. In the first case, a cure for any evils in the
economic, educational or social situation, must probably
be applied by direct Federal interference ; whereas, if
the burden of the negro population is to be distributed,
' A lucid discussion of this by General Walker will be found in
Statistics of the Colored Race in the United States, in Am. Stat. Assn.
Publications 2 igi (1890).
Colored Population of African Descent. 41
there is greater likelihood that the several states may be
able to deal with it adequately by themselves.
No especial change in the census methods seems to be
necessary in order to make the migratory tendencies of
the negro clear. The censuses in 1880 and 1890 both
include a statement of tiie state or territory of birth
and residence of each individual. As Prof. Willcox has
suggested/ the failure to include a column for " Born in
U. S. ; state not specified," in 1880 renders a direct com-
parison of the results for the two censuses somewhat
untrustworthy ; but if the methods of 1890 be preserved,
in 1900 this objection will not apply to a comparison in-
stituted for the present decade. With especial attention
directed to accuracy and fullness in collecting informa-
tion regarding birthplace, the present tendencies in the
matter of migration ought to be made clear witliout
any serious modification of the schedules previously
employed.
A word as to this tendenc)' as it appears to-day.
The widely prevalent opinion, supported by General
Walker,^ by the director of the eleventh census,' by
Mr. Gannett,* and other eminent authorities, is that
the negro population in the United States not onh-
tends to increase most rapidly in the extreme southern
states, but also that a general movement toward that
centre is apparent all through the south. This opinion
has been very ably contested by F. J. Brown, esq., of
Baltimore, in an admirable paper, which presents a most
'Am. Stat. Assn. Publications $ : 371 (1897), See also further
discussion, Idem., 6 : 46.
''■Forum. July, 1891.
^ Eleventh Census. Bulletin, No. 48, and elsewhere. Cf. Brown
op. cit.
'Statistics of the Negroes in the United States. Baltimore, 1894.
42 American Ecouomic Association.
careful analysis of the subject.' He distinguishes three
belts of negro population, differing in the degree as well
as the character of their migratory proclivities. In the
"border states," Delaware, Maryland, the District of
Columbia, the Virginias, Kentucky and Missouri, the
decade, 1880-90, showed a rate of increase of the negro
population of only 2.6 per cent as compared with an in-
crease of 20 per cent for whites. In this belt the
negroes formed only 19 per cent of the population.
Next above these in relative density of negroes came
North Carolina and Tennesse with 31 per cent of
blacks. In these two states, the negroes increased in
numbers by only 6.1 per cent from 1880 to 1890; while
in the "far south," where the negroes form almost half
the entire population, the rate of increase from 1880 to
1890 was as high as 18.4 per cent. Even this, however,
it should be noted, was less than the rate of increase for
the negro population in the northern states, which was
20.6 per cent. The most obvious explanation for these
facts, and it seems probably the justifiable one, is that
not one but two opposite migratory tendencies are really
operative to-day. One, and perhaps the larger one, is
toward the south and southwest ; but its influence is not
felt much beyond North Carolina and Tennessee. The
other is distinctly northward, due to the superior eco-
nomic and social advantages offered north of Mason and
Dixon's line. This tends to deplete the entire group of
Border states ; and also to draw from the next succeed-
ing tier to the south. Thus North Carolina and Ten-
nessee lie between two centres of attraction ; the nearly
stationary condition of their black population shown by
the statistics above is the result. Other interesting
' The Northward Movement of the Colored Population. A Statis-
tical Study. Baltimore, 1897.
Colored Popidation of African Descent. 43
deductions are made by Mr. Brown from examination of
the census tables. We have space here only to mention
them. He calls attention to the violent contrasts in
density of negro population in contiguous counties of
the same state ; showing how the attitude of the whites
often operates to deter a diffusion of the negroes from
regions of relative densit)' to those where scarcely any
blacks reside. He shows that the regions of greatest
negro density are almost invariably those which are
backward in increase of population, partly as a result of
the economic dependence of the negro upon the white
population as employers.
In his description of the character of localities, which
seem to be by nature unfitted for the residence of the
white population, and in which the negro is bound to
predominate in numbers in the future, this author sets a
most admirable example which the geographers of the
next census would do well to follow. It is high time
that population, if it is to be treated from the geograph-
ical point of view, should be analyzed by districts pos-
sessing distinct individualit\- of soil, climate, or altitude.
The worthless generalizations of the distribution of
negro population by "altitude," by "latitude," and by
" rainfall," should be rejected at once in favor of descrip-
tions of true "areas of characterization." The environ-
ment is not composed of any one of these factors by
itself alone, and to analj'ze population in accordance
with them singly is a waste of time and money. Only
when considered in combination, soil and climate to-
gether, is any real human relation brought into relief.
It is greatly to be hoped that the geographers of the
twelfth census will at last awaken to the necessity of
descriptions of environment, if any be needed, in detail ;
44 American Economic Association.
and not indulge in glittering generalizations devoid of
human or scientific interest.
Can the twelfth census deal in its schedules with the
question of blood intermixture of white and negro popu-
lation? The futiire of the race will largely depend upon
whether it is held aloof from intermarriage, or is gradu-
ally assimilated in blood with the white race. Massing
in the far south is certainly unfavorable to the latter ;
dissemination through the white population would be
favorable to it. Our former censuses liave expended
much effort in an honest attempt to elucidate the matter.
The Aci of March i, 1889, under which the eleventh
census was taken, directed a classification of population
as blacks, mulattoes, quadroons and octoroons. Inquiry
of this kind naturally has always yielded worthless re-
sults. Even were no question of illegitimacy or of
ignoble origin involved, as it obviously is in nine cases out
of ten, sucli a query is often impossible of exact answer.
To go back over three generations of ancestry is a
severe tax upon the genealogical resources of the average
southern negro family. I, personally, confess to a lament-
able mental obscurity in the matter of what constitutes
a quadroon or octoroon. It is as difficult as to distin-
guish the several degrees of cousins to which human
kind is liable. This matter must be approached, if at
all, by means of special intensive investigations at the
hands of skilled observers. We cannot share the hope
of the director of the eleventh census, that even the
confessedly imperfect results along this line in 1890, will
be of value, when compared with equally imperfect ones
for 1900. That two absolutely unreliable collections of
data are worth any more than one, is a perversion of
statistical principles. Rejection of this inquiry will
Colored Popidaiioyi of African Desccrit. 45
greatly simplif}- the work of emimerators in the field; it
will allay popular prejudice in many quarters, and it will
leave space for otlier questions of vital importance and
of a more practical nature.
The eleventh census lias sufficiently emphasized the
fact that our colored population of African descent is
increasing far less rapidly than the whites. Tliis is true
not only in the northern and middle states, so far as can
be determined after elimination of the influence of
migration ; but it holds good all over the south as well.
In every part of the United States there can be no doubt
that the negro is being outstripped numerically by the
white race. In the analysis of the causes of this phe-
nomenon, a great opportunity is offered to the director
of the census of 1900 to perform a service for humanity
and science. It is a difficult question, involving not
only the vitality of the blacks of pure blood, but
especially the influence of miscegenation upon the half-
breeds. Hoffman has carefully gathered and collated
such data as were obtainable ; and this portion of his
monograph dealing with vital statistics is in many
respects the most satisfactory. But his conclusions are
invalidated for general application to the whole colored
population by an important fact. His vital statistics
are almost entirely drawn from urban sources ; the
country negro, forming the overwhelming proportion of
the race, is scarcely considered. No available data, in
fact, exist. It is highly improbable, therefore, that the
alarming degenerative tendencies noted by him can be
considered as characteristic of the race as a whole. De-
spite the present tendencies city- ward, the great proportion
of our negroes in the south form a distinctly rural popu-
lation. The " black belt," which has the greatest density,
46 American Economic Associatioji.
is, indeed, almost devoid of cities of any considerable size.
And it is precisely this rural negro population of which
we have the least knowledge, yet whose present condi-
tion may be considered most typical for the race as a
whole.
To discover the causes of the present low rate of
increase in our negro population, especially in the rural
parts of the south, seems to me a most important matter,
imperatively demanding the attention of the authorities
who take the next census. A special report, similar to
that prepared by Dr. Billings in 1890 on the Vital Sta-
tistics of the Jews,"' would be of inestimable value. Yet
it should be far more considerable in size and scope. It
should proceed more on the lines of the special reports
recently started by the Department of L,abor ; or on the
plan of the elaborate special reports on the Indians in
the last census. If less than three hundred thousand
aborigines are deserving of those detailed special investi-
gations, which form so considerable a part of the eleventh
census ; surely our negroes, numbering perhaps eight or
nine million, are worthy of equally detailed considera-
tion. It will be objected, perhaps, that such an investi-
gation belongs rather to the work of the several state
boards of health. In some ways, it is true, they might
be better fitted to cope with tlie complexities of the
situation, especially because of their permanency. But,,
on the other hand, three powerful arguments are in
favor of the assumption of this work by the Federal
authorities. In the first place, the commonwealths show
no disposition to deal with the question thoroughly ;
secondly, the real significance of the negro problem can
only be treated with the entire south and north in view
^ Eleventh Census. Bulletin, 19.
Colored Population of African Descent. 47
at one time, all sections being subjected to examination
under a uniform system ; and thirdly, most important of
all, the real problem of the demography of our colored
race can only be solved by an examination of their eco-
nomic, moral and physical status combined. Thus, for
example, it seems to me far more probable that Dr. Du-
Bois is right in ascribing the relatively slow rate of in-
crease of the average negro family to the fact that it is
economically on the up-grade,' than to accept Hoff-
man's explanation that hybridity, vice and ignorance
are accountable for it. True, Hoffman discovers a ter-
rific death rate among iiis city-bred or migrated negroes,
but neither DuBois nor Brown finds any such abnormal
death rate in other cases. In short, not excessive mor-
tality alone, but a decreased birth rate as well, due to the
first glimmer of ambition to get ahead in the world,
should be taken into consideration. The only way to
follow this up, however, is to make au investigation as
truly economic and social as it is medical and statistical.
Such work demands the most discriminating and im-
partial scientific observation ; the sentimentalist and old-
fashioned moralist who sees in the customary " marriages
on a church broom-stick " tlie incarnation of sexual vice,
should be rigidly excluded ; as well as the average
Southerner for whom there is no horror so great as a
mixed marriage of black and white. Many branches of
science should be contributory; but expert medical opin-
ion and trained economic and social observation are
most necessary. The twelfth census cannot enlarge
its scope in any direction more profitably than in the
conduct of a special investigation of this kind on a
comprehensive scale applied to our negro population as
' Op. cit. , p. TO, ff.
4^ American Economic Association.
a whole. The prosperity of a large section of our
country depends upon the future of tlie black race ;
legislation, Federal and state, would undoubtedly be
shaped in a great measure by the invaluable results
which a visely-ordered special inquiry of this sort
might conceivably yield.
W. Z. RiPi^EY.
]\Tassachusetts Institute of Tectinology .
The Census of the North American Indians.
The previous census reports on the North American
Indians are principally reviews of the status of the
Indians, derived from observations made by special
agents, and collected from data furnished in the annual
reports of the Commissioner of Indian Affairs.
The collection of satisfactory statistical data from
Indian tribes is attended with peculiar difficulties, which
are largely due to the multitude of Indian languages, to
the necessity of employing interpreters in the collection
of data, and also to the impossibility of explaining to
the Indians the object of the research. For this reason
it seems necessary that the data for the census should
be collected largely by men who are in constant contact
with the various tribes, that is to say, by the officers of
the regular Indian service. Much of the material bear-
ing upon the economic conditions of the Indians, and
upon the vital statistics of the various tribes, is contained
in the annual returns of the Indian agents. But their
reports do not bear upon a number of questions that
seem to be of considerable importance.
A census of the Indian tribes should be the means of
determining the success or failure of the policy pursued
during the past years, and should suggest the policy to
be followed in the future. If the census is to be
arranged with a view of carrying out this fundamental
idea, three problems seem to be of fundamental impor-
tance : (i) the effect of the allotment of land in severalty,
(2) the effect of boarding schools and of day schools,
and (3) the effect of blood mixture between Indians,
and whites and negroes.
50 American Economic Association.
Previous census reports contain a certain amount of
purely ethnological information on various Indian tribes,
which was collected incidentally by the agents of the
Census Office. It does not seem that information of this
character, highly valuable though it may be for scien-
tific purposes, belongs properly to the domain of the
census of the Indians, which ought to be confined to
demographical questions. There might be an excuse
for the collection of this information, if no other agencies
were provided by law for collection of data of this de-
scription ; but, since the Bureau of American Ethnology
has been established with the express purpose of col-
lecting data referring to the primitive condition of the
Indians, the work of the census in this line is unneces-
sary, and duplicates the work that is done much more
thoroughly and satisfactorily by the trained investigators
of the Bureau of American Ethnology than it is by the
occasional observations of agents whose prime interest
lies in statistical inquiries.
The following questions seem of particular interest in
regard to the three points which were designated before
as especially desirable subjects for investigation thus : —
1. Influence of the allotment of land in severalty
to the Indians. — Much of the information that seems
desirable in connection with this subject is contained in
the annual reports of the Commissioner of Indian
Affairs. It would seem particularly desirable to ascer-
tain in some detail the economic condition of Indians
holding land in severalty, and to classify the returns
that would be obtained under the second and third head-
ing in reference to the questions, whether Indians hold
land in severalty, or as a tribal unit ; and whether they
receive rations, or are self-supporting.
2. The effect of the school system upon the Indian
The Census of the North American Indians. 51
population. — Indian schools may be classed as day
schools, boarding schools, and training schools. The
influence of the day school upon the child is compara-
tively slight. In the boarding school the child is re-
moved from its home surroundings for a series of years,
and in the training school this separation is emphasized
by the removal to a distant locality and by the continu-
ance of this removal for a number of 3'ears. It seems
very desirable to collect detailed statistics on the fate, in
later life, of the scholars in these various classes of
schools, in regard as well to their state of health as to
their social and economic history, particularly with a
view of determining how far school life tends to break
up tribal relationship, and promotes affiliation between
Indians and whites.
3. Mixture between India?is., and whites and negroes.
One of the most important problems of Indian policy is
the question, in how far it is desirable to promote mix-
ture between the Indians and other races. It is clear
that, with the increase in settlement in our country, the
chances for the Indian to survive as an independent race
will become slighter and slighter. The opinion is fre-
quently held that half-breeds, the descendants of Indians
and whites or of Indians and negroes, are much inferior
in physique, in ability, and in character, to the full-
bloods. But no statistical information is available which
would justify a conclusion of this character. If there
was a decided deterioration of race, due to mixture, it
would seem that the opportunity for race mixture should
be limited so far as this can be accomplished. On the
other hand, if race mixture seems to be advantageous, it
should be facilitated, particularly by bringing the
Indians into easy contact with the whites.
For this reason it would seem of great importance to
52 American Econotnic Association.
determine the vitality, the social environment, and
criminal statistics of the half-blood as compared with the
full-blood and with the white. It would seem that the
most satisfactory information on this point could be
gathered in the Indian schools, where half-blood children
and Indian children may be observed under equally
favorable conditions. The investigation should be car-
ried on by a number of observers trained in the methods
of collecting information on the bodily development of
children. This investigation could be carried out, in the
course of two years, on all the Indian and half-breed
children attending school. It is indispensable that the
inquiry should be extended over a period of two years,
because each individual should be examined at least
twice, at an interval of not less than one year. The re-
sults would be still more satisfactory if the investigation
could be repeated at regular intervals through a period
of ten years, so as to extend from the twelfth to the
thirteenth census. It is of great importance to deter-
mine the fertility of full-blood and of half-blood women,
an inquiry which could be carried out on the agency
with the help of the agent's records, and by means of
information that may be collected by the help of agency
physicians. Preliminary statistics collected by the
writer seem to indicate an increased fertility on the part
of the half-blood woman.
The primary object of this investigation would neces-
sitate the collection of data showing the tendency, on
the part of half-breeds of both sexes, to leave the tribe
to which they belong, and to merge themselves in the
white population. Statistics collected in certain parts
of western Canada seem to indicate that the female part
of the population is more likely to leave the tribe than
The Census of the North American Indians. 53
is the male population, and that the male half-blood is
likely to marry a full-blood Indian, while the female
half-blood is likely to marry a white man.
It would be quite feasible to collect information in
regard to the data mentioned here, and the results of
the investigation would have an important bearing upon
the shaping of our Indian policy.
Franz Boas.
Columbia University .
Age, Sex, Dwellings and Families, and TTrban Population.
Any consideration of either theoretical or practical
census work should not fail to take into account the
various limitations to which each investigation is sub-
ject, as well as those to which the office as a whole is
subject. The Superintendent and his chiefs are early
confronted with questions of time and money.
More especially the matter of time is important in the
planning of the work. It will not do to construct a
scheme, even in population, agriculture, and manu-
factures, that cannot be executed to its end, a satis-
factory tabulation, in less than about five years, and a
large portion of the results in these leading branches of
census work should be available to the public within
two or three years.
It is apparent, therefore, to one who is familiar with
the magnitude of the work of a census office as it has
been conducted during the last two censuses, that any
elaboration of census schedules used in the census of
1890, should be undertaken with extreme caution, and
that, on the contrary, it might be better to reduce the
number of questions.
Another matter to be considered in planning census
work relates to the printing of final reports. It is very
easy to elaborate a scheme of tabulation to such an
extent that the report will be too diffuse and will render
it difficult for one who examines it to find the infor-
mation that he wants. There is no use, for instance,
in presenting a table stating that two persons died of
scarlet fever in a certain sanitary district within a year,
or that there was one homicide in a certain county,
Age, Sex, Dwellings, Families, and Urban Population. 55
Much of the bulkiness of the reports of the eleventh
census would have been prevented if minute details
like these, which are of no value at all as statements of
fact, had been condensed to larger aggregates.
One of the most deplorable limitations to good and
quick census work is the spoils system under which the
office has been operated and under which, at this writing,
it seems likely to be operated for the twelfth census.
The evils of that system are exasperating to those who
have charge of the work, because they are incessantly
blocking the way, upsetting arrangements, and, at the
end, curtailing desirable tabulation because the work
has been so long drawn out. It has been said, and is
doubtless true, that the completion of the eleventh
census was delayed at least one year by the change of
administration, March 4, 1893, and it is well known that
because of that change of administration some of the
contemplated and partly accomplished tabulation had to
be given up.
The operation of the spoils system is made worse by
putting the Census Office in the Interior Department ;
but aside from any consideration of this sort it would
be much better to make the Census Office an inde-
pendent bureau, responsible directly to the President,
which would mean practically that the Director would
be the supreme head of the office. The President would
not undertake to dictate to the Director what the organi-
zation of his office must be, whereas Secretaries of the
Interior have been known to do this to an extent which
was very detrimental to the good of the office.
AGE.
In the census of 1890 the enumerators were instructed
as follows :
56 American Economic Association.
" Age at nearest birthday. If under one year, give age in months.
" Write the age in figures at nearest birthday in whole years, omit-
ting months and days, for each person of one year of age or over.
For children who on the ist of June, 1890, were less than one year of
age, give the age in months, or twelfths of a year, thus : 3/12, 7/12,
10/12. For a child less than one month old, state the age as follows :
0/12. The exact years of age for all persons one year old or over should
be given whenever it can be obtained. In any event, do not accept
the answer "don't know," but ascertain as nearly as possible the
approximate age of each person. The general tendency of persons in
giving their ages is to use the round numbers, as 20, 25, 30, 35, 40, etc.
If the age is given as " about 25," determine, if possible, whether the
age should be entered as 24, 25, or 26. Particular attention should be
paid to this, otherwise it will be found when the results are aggregated
in this office that a much more than normal number of persons have
been reported as 20, 25, 30, 35, 40, etc., years of age, and a much less
than normal at 19, 21, 24, 26, 29, 31, etc." '
These instructions seem to me to be perfect ; they are
explicit, clear, and neither too long nor too short.^
^ Eleventh Census. Instructions to Enumerators. 23.
^[It may be mentioned here, as it is not, I believe, in the Eleventh
Census, that the question asked in 1880 was, "Age at last birthday,"
and in 1890, "Age at nearest birthday." No reason for the change is
offered and its wisdom may be doubted. A person usually regards
his age as equal to the number of birthdays he has passed. Any
attempt by the census to ask a question involving a different concep-
tion seems unwise and likely to be misleading. The average age of
the population of the United States in 1 880 was 24.1 years, in 1890,
25.1 years. (Eleventh Census, Abstract 7.) Of this increase of a
year in the average age, a part lying between zero and six months was
due to the change in the form of the question, and no one can tell
how much. My conjecture is that among adults the part was almost
negligibly small. Some evidence of an effect upon the reported ages
of children may be derived from the figures. Under the instructions
quoted by Mr. Holmes, the children reported in 1890 as one year old
should have included only those between twelve months and eighteen
months, while in 1880 those one year old should have included all be-
tween tv/elve months and twenty-four months. The figures show
that in 1880 eighteen per cent of the children under five were one
year old, while in 1890 only fourteen per cent were so. The true per-
centage was probably over twenty. As the ages of adults were stated
in 1890 with decidedly more accuracy than in 1880 (Am. Stat. Assn.
5 ■ 133)) this decreased accuracy may plausibly be assigned to the
change in the form of the question. If so, at least 300,000 children
between eighteen and twenty-four months were reported as two years
old.— W. F. W.]
Age, Sex, Dwellings, Families, and Urban Population. 57
It is needless to enter into any discussion as to the
desirability of obtaining the statistics of the ages of the
population, but there is room for discussion with regard
to tabulation.
The method adopted for the census of 1890 was to
group the months and make a total for age under one
year, and then group the years, thus : i to 4, 5 to 9, 10
to 14, etc.
It seems generally to be agreed by those who have
. given the distribution of ages as reported by enumerators
any consideration for the purpose of tabulating them,
that such a grouping as this should not be repeated.
The years which are notoriously erroneous, that is, the
quinquennial and decennial years, are placed at one end
in each classiiication.^
The English census, in one table at least, has grouped
by quinquennial years up to, but not including, 25, and
then grouped every ten years, beginning with 25, 35, 45,
etc., the object being to put the most erroneous age-year
of the group as near the middle as possible. But, in
doing this, the scheme allows the age-year, which is of
second importance (25, 35, etc.), to be at one end of the
group. In this way a subdivision of the decennial
groups into quinquennial groups was made impossible,
and quinquennial groups are the more useful, if both
groupings cannot be had.
I would suggest that a quinquennial grouping should
be continued under a new arrangement, the first group
' [It may be noticed that there is no traceable concentration on the
ages 5 and 15 and little on 10 and 20. It is not until after the age of
20 that the tendency to concentrate on multiples of 5 becomes evi-
dent (Am. Stat. Assn., 5 : 133). Before that the tendency is to con-
centrate on the even years and especially on the years 14, i5, 18, or
21 (the last only for males) which bring some legal privileges or im-
munities. W. F. W.]
58 American Economic Association.
to contain ages under three, the next groups to be 3 to 7
years, 8 to 12, 13 to 17, and so forth. This would place
the especially erroneous years in the middle of the groups
in every case.
In the tabulation of the scheme of the eleventh cen-
sus ages were tabulated by sex, general nativity, and
color, by states and territories, and by cities of 25,000
inhabitants or more, as shown in the following state-
ment :
Ages of the aggregate population of the United States, classified by •
sex, general nativity, and color.
Ages of the aggregate population, classified by sex, general nativity,
and color, by states and territories.
Ages by periods of years of the aggregate population, classified by
sex, by states and territories.
Ages by periods of years of the native white population of native
parentage, classified by sex, by states and territories.
Ages by periods of years of the native white population of foreign
parentage, classified by sex, by states and territories.
Ages by periods of years of the foreign white population , classified by
sex, by states and territories.
Ages by periods of years of the colored population, clas.sified by sex,
by states and territories.
Ages by periods of years of the aggregate population, classified by
sex, general nativity, and color, for cities having 25,000 inhab-
itants or more.
The tabulation of ages for the larger cities" is especially
noteworthy, and the continuance of tabulation for such
cities should be repeated in every census. The import-
ance of the urban population in its relative and increas-
ing magnitude has become such that a tabular presenta-
tion of facts for the urban population, as distinct from
the remainder of the population, should be extended to
all tables embracing the whole country wherever the
facts are pertinent to the city population either positively
or negatively. The limitation of this tabulation of ages
in these cities to sex, general nativity, and color was
' Eleventh Census. Population, 2 : 1 14-134, Table 8.
Age, Sex, Dwellings, Families, and Urban Population. 59
probably due to circumstantial limitations prevailing in
the office of the census ; and, while this tabulation was
more elaborate than that of any previous census or than
that of any other country, and the relating of ages to
these elements of the population seems to be very desir-
able, I would suggest that it would be desirable also to
tabulate ages by conjugal condition.
In the latest censuses of various countries, ages were
tabulated as follows :
England and Wales : By sex ; by conjugal condition
and sex ; by sex, with subdivision of the population into
urban and rural ; by sex and the defective classes ; by sex
and the occupations of the blind ; by sex and the occu-
pations of the other defective classes ; by sex for the
mentally deranged in asylums and workhouses ; by sex
and conjugal condition for the pauper inmates of work-
houses ; by sex and conjugal condition for prisoners ;
by sex and nativity ; by sex, conjugal condition, and
nativity.
In Belgium, the ages are presented in groups by sex.
The German tabulation is by sex and conjugal condition.
The French tabulation of ages is in groups by sex and
occupation ; by sex and conjugal condition ; and there is
a tabulation of ages for the urban population.
Upon examining what has been done in foreign coun-
tries with respect to the tabulation of ages, there is little
that is practically suggestive.
Desirable as it would be to tabulate occupations by
ages, the number and classification of occupations to
which our future Census Office is virtually committed
would call for a table in such detail that considerations
of time consumed and printed space required practically
bar out such a tabulation.
6o American Economic Association.
SEX.
Little is to be said with regard to sex beyond what
incidentally appears in the rest of this paper. All are
so agreed that in all population tables the distinction of
sex should be made, and this is so universally the prac-
tice, that there is nothing to be done beyond expressing
a caution against omitting sex from any tabular pre-
sentation for which sex is known.
DWELLINGS AND FAMILIES.
The family is such an important social element that
I cannot assume any one would seriously question the
tabulation of the number, and to this I would add that
the family should in some way be related statistically,
to its home.
The practice of the national census has been to estab-
lish a relationship between the number of families and
the number of dwellings.
The following were the instructions defining a dwell-
ing-house :
" A dwelling-house for the purposes of the census means any build-
ing or place of abode, of whatever character, material, or structure, in
which any person is living at the time of taking the census. It may
be a room above a warehouse or factory, a loft above a stable, a wig-
wam on the outskirts of a settlement, or a dwelling-house in the
ordinary sense of that term. A tenement house, whether it contains
two, three, or forty families, should be considered for the purposes of
the census as one house. A building under one roof suited for two or
more families, but with a dividing partition wall and a separate front
door for each part of the building, should be counted as two or more
houses. A block of houses under one roof, but with separate front
doors, should be considered as so many houses, without regard to the
number of families in each separate house in the block. Wholly un-
inhabited dwellings are not to be counted." '
I fail to see that a relationship between number of
families and number of dwellings is of sufficient import-
' Eleventh Census. Instructions to Enumerators. 19.
Age, Sex, Dwellings, Families, and Urban Population. 6i
ance to be worth the tabulation. It may have had some
importance before the erection of large tenements and
flat-houses, and before the character of the home under-
went the great change that the growth of cities and
towns has imparted to living. The original, and con-
tinued, object of relating families to number of dwellings
was, and is, to measure statistically the degree of crowd-
ing. But these statistics no longer measure this, or cer-
tainly not in the sense that they measured it in the past.
In some southern county there may be a dwelling to
every family, inhabitants being, say, largely composed
of negroes in a cotton region ; but these families, for the
most part, may be living in very small quarters and in
mere cabins, and the average of one dwelling to a family
should not be received as having any significance at all.
In cities, on the other hand, while a ratio of dwellings
to families would give some indication of density of
population, it might give no indication of floor space-
crowding, since the dwellings are of such indefinite size
in cities and many of them are not only large but afford
very commodious space.
I would, therefore, recommend that no further statis-
tics of the number of dwellings be published ; but, as I
have said, some sort of relationship between the family
and its home, as indicating family circumstances, should
be adopted. The facts taken for this purpose must be
very few in number and must be easily ascertainable and
represented without a special schedule and without
somewhat elaborate inquiry into the home circumstances,
which, of course, would be practically out of the ques-
tion.
I think of nothing else that might be feasible, and at
the same time indicate fairly significant results, which is
as good as taking the number of rooms occupied by each
62 American Economic Association.
family, regardless of the number of families that there
■ma}' be in the dwelling. The number of rooms is
readily ascertainable by any enumerator, as has been
demonstrated in Massachusetts and in France and
England, and the returns present no difficulties to the
tabulator.
It would be inadvisable to change the definition of the
word family for statistical purposes. The enumerators
of the eleventh census were instructed as follows :
" The word family, for the purposes of the census, includes persons
living alone, as well as families in the ordinary sense of that term,
and also all larger aggregations of people having only the tie of a
common roof and table. A hotel, with all its inmates, constitutes but
one family within the meaning of this term.- A hospital, a prison, an
asylum is equally a family for the purposes of the census. On the
other hand, the solitary inmate of a cabin, a loft, or a room finished
off above a store, and indeed all individuals living out of families,
constitute a family in the meaning of the census act.
" By ' individuals living out of families ' is meant all persons occupy-
ing lofts in piiblic buildings, above stores, warehouses, factories, and
stables, having no other usual place of abode ; persons living solitary
in cabins, huts, or tents ; persons sleeping on river boats, canal boats,
barges, etc., having no other usual place of abode, and persons in
police stations having no homes. Of the classes just mentioned the
most important, numerically, is the first, viz. : those persons, chiefly
in cities, who occupy rooms in public buildings, or above stores, ware-
houses, factories, and stables. In order to reach such persons the
enumerator will need not only to keep his eyes open to all indications
of such casual residence in his enumeration district, but to make in-
quiry both of the parties occupying the business portion of such
buildings and also of the police. In the case, however, of tenement
houses and of the so-called ' flats ' of the great cities as many families
are to be recorded as there are separate tables.
" A person's home is where he sleeps. There are many people who
lodge in one place and board in another ; all such persons should be
returned as members of that family with which they lodge." '
To depart from the foregoing definition of a family,
which has been substantially the one adopted previously,
would be uncalled for, but it does seem necessary that
there should be some improvement in the tabulation of
families. A mere average of the number of persons to
' Eleventh Census. Instructions to Enumerators. 20.
Age, Sex, Dwellings, Families, and Urban Population. 63
a family, while useful for some purposes, is far from
being as useful as a statement of the number of families
having a specified number of members. A presentation
of facts in this way, not only for the number of persons
in a family, but in nearly all other cases of the sort, is so
generally agreed upon by statisticians and students of
statistics, that I feel it needless to do more than make
the suggestion.
The instructions given to the enumerators of the
census of 1890 were very well prepared, and I submit
below extracts from them relating to the family :
" Number of persons in this family .
"The answer to this inquiry should correspond to the number of
columns filled on each schedule, and care should be taken to have all
the members of the family included in this statement and a column
filled for each person in the family, including servants, boarders,
lodgers, etc. Be sure that the person answering the inquiries thor-
oughly understands the question, and does not omit any person who
should be counted as a member of the family." '
"Relationship to head of family .
' ' Designate the head of a family, whether a husband or father,
widow or unmarried person of either sex, by the word ' Head ;' other
members of a family by wife, mother , father , son, daughter, grand-
son, daughter-in-law, aunt, uncle, nephew, niece, servant, or other
properly distinctive term, according to the particular relationship
which the person bears to the head of the family. Distinguish be-
tween boarders, who sleep and board in one place, and lodgers, who
room in one place and board in another. If an inmate of an institu-
tion or school, write inmate, pupil, patient, prisoner, or some equiva-
lent term which will clearly distingviish inmates from the officers and
employes and their families. But all officers and employes of an
institution who reside in the institution building are to be accounted,
for census purposes, as one family, the head of which is the superin-
tendent, matron, or other officer in charge. If more than one family
resides in the institution building, group the members together and
distinguish them in some intelligible way. In addition to defining
their natural relationship to the head of the institution or of their own
immediate family, their official position in the institution, if any^
should be also noted, thus : Superintendent, clerk, teacher, watchman,
nurse, etc. ' ' ^
' Eleventh Census. Instructions to Enumerators. 20.
^ Eleventh Census. Instructions to Enumerators. 22, f.
64 American Eco7iomic Association.
Most of the censuses of foreign countries took account
of the number of dwellings, and France ascertained
various details relating to the home, as the number of
living rooms, number of stories, etc.
In the latest English census tenements with less than
five rooms were tabulated as having one, two, three,
four, and over four rooms, and also by number of occu-
pants. The instructions were that, " all the space within
the external and party-walls of a building was to be con-
sidered a separate house By a ' tenement '
was to be understood any part of a house occupied either
by the owner or by a tenant." '
The use of the word " tenement " in the English
enumeration led to considerable confusion ; no instruc-
tions were given as to what constituted " a room."'
The experience of the latest English census sustains
me in advising that there should be no tabulation of the
number of dwellings. The Registrar writes that the
instructions in regard to dwellings and tenements "were
not universally observed, and often a block of buildings
consisting, according to the definition, of several distinct
houses, was treated as a single house, while on the other
hand portions of one and the same house held as differ-
ent tenements, were often counted as separate houses.
There is, moreover, very good ground for believing that
the introduction into the enumeration book of a new
column in which particulars were to be inserted as to
the number of rooms in a tenement has, by confusing
the enumerators, materially added to the frequency of
these errors, so that the figures must be received with
some reservation."
The last Scotch census ascertained and published the
1 Great Britain Commons Papers 1893, volume 106. Census of
England and Wales. General Report. 20.
Age, Sex, Dzvellings, Fainilies, and Urban Population. 65
number of families, with specified number of members
by number of rooms with specified number of windows
and rooms without windows.
In our census of 1890 tables were published, as shown
by the following description :
DWELLINGS AND FAMILIES.
Total dwellings and persons to a dwelling, by states and territories.
Total families and persons to a family, by states and territories.
Total dwellings and families, and persons to a dwelling and to a family,
by counties.
Total dv.'ellings and families, and persons to a dwelling and to a family,
for places having 2,500 inhabitants or more.
Persons to a dwelling, in detail, by states and territories.
Persons to a dwelling, in detail, for cities having 25,000 inhabitants or
more.
Persons to a family, in detail, by states and territories.
Persons to a famil}', in detail, for cities having 25,000 inhabitants or
more.
Number of dwellings having specified number of familes, with average
number of families to a dwelling, for cities having 100,000 in-
habitants or more, and by wards for certain cities.
Number of families in dwellings according to specified number of
families, for cities having 100,000 inhabitants or more, and by
wards for certain cities.
The Massachusetts census of 1895 ascertained, in
considerable detail, the number of rooms occupied by
families (not the number of families in a dwelling-
house), and a description of the materials of which
dwellings were constructed. Even if it were desirable,
a national census could not undertake to ascertain the
sorts of materials entering into the construction of
dwellings, because the work of the Census Office could
not stand so mtich elaboration.
URBAN POPULATION.
I have already incidentally mentioned the subject of
urban population, and expressed the desirability of pre-
66
America7i Economic Association.
senting tables for the larger cities for the subjects that
are related, either positively or negatively, to city life.
I would say that the work of the census of 1890 in pre-
senting tables for cities should be repeated and extended.
It would hardly seem advisable to increase the work
previously done in the preparation of social statistics of
cities, but rather to see that the work is placed in expert
hands in order that its accuracy may be assured. I
would suggest, however, that in the work on the social
statistics of cities, a special study of suburban transit be
made, and for that purpose I submit the accompanying
table, which is supposed to represent all of the lines for
passenger transportation running from suburban towns
and cities to New York city, and is to include the trains
running to the city ; a similar table to be provided for
trains running from the city :
POPUI.ATION.
Time to City Hali,.
{Surface cars.
Steam railways,
Number of ,
trips possi
"IZs' i^'-s than 5
Minutes.
6-10
11-15
16-20
21-30
31-45
46-60
60-120
4
5
6
7 '
8 ■■
9
10
Such a table as the foregoing is a matter of no singu-
lar importance, but is merely intended to be a part of
the so-called social statistics of cities. Its object is to
show how it happens that the long feared congestion of
population in parts of large cities is, or may be, relieved.
It hardly seems within the scope of this paper to
present, in detail, the varied investigations that need to
Age, Sex, Dwellings , Families, and Urban Population. 67
be carried on in the collection of social statistics of
cities. It is a work of many details, and to formulate a
scheme of investigation would require months.
The subjects of urban growth, of the effects of city
life upon the people physically, morally, mentally and
financially, of municipal finance and management, the
question as to whether, and to what extent, the munici-
pality should own gas-works, water-works, etc., and
many other problems that I do not need to mention,
afford numerous opportuniciesfor statistical work on this
subject, but to what extent the Census Office should
undertake them, is open to discussion. Some of this field
has already been covered by the Department of Labor,
and some by other statistical offices, not always,
it is true, thoroughly and extensivel}', but yet, in the
case of the Department of lyabor, extensively enough to
indicate that the field can be covered by a statistical
office smaller than that of the Census Office, and, there-
fore, that the census need not be burdened with such
work.
The matter of tabulating the entire population with
regard to relationship to the head of the family calls for
no suggestions. This tabulation, which has been
omitted in the past, should be included. I suppose that
there is no disagreement as to the desirability of these
statistics, and in their tabulation they would require no
expensive elaboration.
George K. Holmes.
U. S. Department of Agriculture.
Illiteracy and Educational Statistics.
The collection of statistical data to illustrate the
simplest elements of intellectual accomplishment and to
serve as a measure of society's activities in educating
the people of the land was first attempted for the whole
country in the census of 1840, and this branch of census
work has been continued in each succeeding enumera-
tion. From the first there have been two main lines of
inquiry : first, the data collected on the general popula-
tion schedules concerning the literacy of the population,
that is, the ability of each individual over a certain age
to read and write ; secondly, the data in regard to the
number of teachers, the educational institutions, expen-
diture, and other facts which would illustrate the great
social effort being made to uplift the people by educa-
tion, and the degree to which such opportunities are
used as indicated by the number of pupils attending.
The subject, therefore, may be conveniently divided into
two parts, illiteracy and educational statistics.
Illiteracy.
In the census of 1840 an enumeration was made
of the number of white persons over 20 years of age
who could not read or write. In 1850 a beginning
in the classification of illiterates was made, distin-
guishing them as white and free-colored, native
and foreign. The returns were tabulated by counties.
The superintendent expressed the opinion that the sta-
tistics, so far as the whites were concerned, were reliable.
The same classification was followed in i860, but the
returns were not tabulated for minor civil divisions.
In 1870 a change was made in the form of the schedule.
Illiteracy and Educational Statistics. 69
and the table formerly reading, " Persons over 20 years
of age who cannot read or write " was subdivided into
two columns: "cannot read," and "cannot write."
The editor notes " that, great numbers of persons rather
than admit their ignorance, will claim to read, who will
not pretend that they can write. . . .If a man cannot
write, it is fair to assume that he cannot read well ; that
is, that he really comes within the illiterate class. . . .
Taking the whole country together, hundreds of thou-
sands of persons appear in the class ' cannot write '
over and above those who confess that they cannot read.
This is the true number of the illiterate of the country ;
the class which it is now necessary to treat, for the
simple safety of our political institutions. "'
The limitation of age was also modified so as to in-
clude all persons above ten years of age. "Those
between the ages of ten and twenty who cannot read
and write are to constitute the class which in ten years
more will form the hopelessl)- illiterate of another
census. It is as important to determine the numbers of
our youth who are growing up in ignorance, . . .as to
determine the number of those who have passed the
period of youth in ignorance and who will, with few
exceptions, remain illiterate through life."^ At the
request of the Commissioner of Education and others
interested in public education, the illiterates were divi-
ded according to age into three classes, 10-15, I5~20,
20 and over. The classification then is as follows :
cannot write, distinguished as white and colored, and
native and foreign. Once more the returns are given
by counties. There is also a map showing illiteracy of
the eastern half of the United States.^
^ Ninth Census. Population and Social Statistics, xxx.
- Ibid.
^ Idem., 393.
70
American Economic Association.
The census of 1880 in general followed that of 1870.
Separate columns are given for those above ten years of
age unable to read and those unable to write. Illiter-
ates are also distinguished as white, native white, and
foreign white, 10 years of age and upward, and the
white and colored for the three age groups distinguished
by sex. The tables are not worked out for subdivisions
below that of states.
In 1890 the tabulation of statistics of illiterates was
very wisely carried much further, although little change
was made in the form of questions asked. ^ Of special
importance was the classification of parentage of the
native white population. This is a proper distinction,
as it might be expected that those of foreign parentage
would not be so eager to force their children to take ad-
vantage of educational opportunities as would those
whose native ancestry was of a longer period. A dis-
tinction was made, also, in the colored population, be-
tween those of negro descent and the Chinese, Japanese
and civilized Indians.
A new age classification is presented as follows : 10-
14, 15-19, 20-24, 25-34, 35-44, 45-54, 55-64, 65 and
over, and unknown. Through such a classification as
this, it is possible to draw some inferences as to whether
a state is keeping up an educational pressure or not.
There ought to be by right a lower percentage of illiter-
acy among the native whites of native parentage in the
age group 10-14 than in the group 15-19 ; and in every
one of the North Atlantic states this is the case. In
the South Atlantic states, however, beginning with
Delaware, with the exception of Maryland, the percent-
age for the lower age group is greater in comparison for
this whole section of states, being 14.8 for the age group
' Eleventh Census. Population, 2 : xxx-lx and 193-252.
Illiteracy and Educational Statistics. 71
10-14 ^'^^ II-5 for the age group 15-19. Of course
this increase in the lower age group may be due to the
fact that there is more deception to be found in the
older group than in the younger, or that opportunities
to read and write have come to the population after they
have passed the age of 14.
Such an age classification will also show how far an
American state influences a foreign-born population pro-
vided it can get its educational machinery at work upon
it early enough. For example, Massachusetts with her
compulsory law has exerted such activity that among
the foreign-born population, in the age group 10-14 but
3.4 per cent are illiterate, while in the age group 15—19
the percentage is 11. For the United States as a whole
the respective percentages are 5.9 and 10. i
Of equal importance is an age group classification in
studying the education of the colored race. It is not
encouraging, for example, to find in Alabama that,
while for the age group 15—19 the illiterates comprised
55.8 per cent, in the age group to— 14, they were 52.5
per cent. In Mississippi, however, there is a decrease
from 44.4 per cent in the higher age group to 36.6
in the lower.
No percentages are worked out for age subdivisions
above 20, and it is unfortunate, though by no means
an important error, that in some minor groupings the
age classification for the absolute numbers of illiter-
ates is not the same as obtains in the regular age classi-
fication. Of the total population, for example, the gen-
eral age classification is as follows : 20-24, 25-29, 30-34,
35-44, 45-54, 55 and over. The illiterates are classified
as 20^24, 25-34, 35-44, 45-54, 55-^4, 65 and over.
The combination of figures for the age group 25-34
therefore requires a previous adjustment.
72 American Economic Association.
Again, the degree of illiteracy is distinguished by
reporting those who can read but cannot write and those
those who can neither read nor write, and these are
further classified in regard to sex, nativity and parentage.
Whether a part of this tabulation might not be aban-
doned in favor of others is, I believe, a fair question to
raise. For example, it would be helpful to know whether
the native born illiterates, particularly of the age classes
10—14, and 15-19, were born within their own state;
and of the foreign born, it is highly desirable that their
particular nationality should be given in order that we
may know what countries are furnishing xis the largest
amount, not merely of temporary, but of more or less
permanent illiteracy.
In addition to classification by states, statistics are
given for 124 cities having 25,000 or more inhabitants,
for sex, nativity, degree of illiteracy, and age.
A new and interesting inquiry was introduced in 1890
in regard to ability to speak English.' There are tables
showing the total number of persons 10 years of age and
over who cannot speak English, classified by foreign
nativity, parentage and color, for states and also cities
having 25,000 or more inhabitants. These are classified
as to sex and according to the usual age groups. Infor-
mation was also gathered upon the schedules regarding
the particular language spoken by the individual unable
to speak English, but for lack of time the data as to the
various languages spoken were not worked up. Such a
tabulation would be of great interest in connection with
the statistics of immigration, for in that way an estimate
might be made of the degree of assimilation of foreigners
from different countries. It is to be hoped that it will
be insisted upon in the twelfth census.
^Idem., Ix-lxv, and 253-278.
Illiteracy and Educational Statistics. 73
In the use of statistics of illiteracy, questions arise as
to the probable accuracy of the data. Here it is im-
possible to speak with any positiveness, since it is diffi-
cult, and for the whole country impossible, to secure any
index by which we can test returns. In Massachusetts,
reports of illiteracy were published in the state censuses
of 1875 and 1885. The several censuses give the num-
ber of illiterates as follows :
1875 state census 104,513
1880 U.S. " 92,980
• 1885 state " 122,263
:89oU. S. " 114,468
It will be observed that the state census of five years
previous to that of the United States enuinerates more
illiterates than does the latter ; personally, however, I
do not believe that a variation of about 10 per cent in
an inquiry of this character, necessarily invalidates the
usefulness of the returns.
In the grouping of tlie statistics of illiteracy there is
another consideration as to whether the census should
follow the customary grouping of states followed in
other classifications of the population. For example,
what is known as the Western division includes New
Mexico. This has 42.8 per cent of native white
illiterates and Arizona has 7.9. The next highest in
the scale of illiteracy in this group is Colorado with 3.8.^
New Mexico and Arizona have an entirely different past
history from that of the other states. They include a
native white population, of Spanish descent, which has
remained for a long time stationary in its educational
development. If we should throw out New Mexico and
Arizona, the percentage of illiteracy for the Western
group in the class of native whites would be less than
' Idem. XXXV.
74 Americayi Eco7ioinic Association.
that of the North Atlantic division. So, too, in the
South Central division Missouri is included which has a
different social past than that of the other states
included in this group. It would also be helpful if
tabulation could be made of rural districts as dis-
tinguished from the large cities, and possibly the tabu-
lation might include a few states by counties.
Sducational Statistics.
The statistics of school attendance are furnished for
the census in two ways : first, by returns on the general
population schedules ; and secondly by reports made by
educational institutions in a special monograph. From
the population schedules, the character of school atten-
dance is statistically described' as follows : the number
attending school by nativity, parentage of native whites,
age groups, as under 5, 5-9, 10-14, 15-19, 20 and over,
and these several age groups according to nativity,
parentage and sex.
These tables are not worked out in a form as conven-
ient as in the case of statistics of illiteracy. A table is
presented for the whole country which shows the percen-
tage of persons attending school, and the total persons of
the several age groups 5-9, 10-14, 15-19, 20 and over^
but unfortunately percentages are not worked out for the
several states. If these tables, therefore, are used for
local work, reference must be made to the general popu-
lation returns in order to secure comparative results.
Detailed tables are also given showing the months of
school attendance as one month or less, 2—3 months, 4—5
months, 6 months or over, and this is given for the sev-
eral groups of population according to nativity and
' Idem, xxvii-xxx and 135-192.
^ Idem, xxvii.
Illiteracy and Educatio7ial Statistics. 75
parentage. As to the accuracy of these reports there is
considerable doubt. For example, the number of native
whites of native parentage, 10—14 in Massachusetts, re-
ported as attending school was 71,065.' The total num-
ber of such children, however, in the state of that age is
tabulated in the general population tables as 75,017.^
Native whites of foreign parentage, 10—14, ^-re given as
79,406^ against a total population of the same age group
of 86,530. Of foreign whites 10-14, those attending
school are returned as 23,391* against a total population
of 28,820.
The special monograph on education ma}' be regarded
as on the whole successful. " In marking out the lines
of inquiry for the eleventh census it was determined to
use a small number of questions that might be readily
answered and whose results could be quickly published.
.... It was the effort to gather educational facts in
the following order : first, according to their importance ;
second, according to the readiness with which they could
be furnished ; third, according to the facility with which
the results could be combined and published. Under the
first principle of selection it was desirable to know (a)
How many go to school? (b) Who go to school, indi-
cated by age, sex, and race? (c) How long do they go?
(d) What is the character of the work done, as elemen-
tary, secondary, or superior? questions applicable in
nearly every point to both teachers and pupils. The
financial questions were left to be treated by the census
division of wealth, debt, and taxation." '' The expert in
charge of this investigation makes an interesting and
intelligent criticism of the difficulties in the way of
^Idem. 150. ^ Idem. 154.
'^ Idem. 44. ^'Idem. 158.
* Eleventh Census. Report on Education, 1.
76 American Ecotioniic Associatio7t.
securing uniformity of returns. These it is not neces-
sary to rehearse. The difficulties appear to be fully
realized, and the editor has consequently been guarded
in the deductions which might be drawn. This special
monograph is to be commended, since it is the first time
the parochial schools have received so detailed a report-
ing, and statistics for the public schools are also furnished
by counties of the several states.
At the same time it is extremely unfortunate that
these returns of school enrollment should not agree
better with the returns of school attendance printed in
the volume on population. The school enrollment, in
eluding public, private and parocliial schools, largely
exceeds the returns given on the general schedules of
school attendance. The value, therefore, of one or the
other of these returns is immediately open to suspicion.
The total enrollment of pupils derived from the reports
of schools of the United States is 14,373,670.^ The re-
turn of total persons " attending school during the census
year" is 11,674,878,' a difference of two million and a
third. Again, the total number of teachers returned
in the occupation schedules is 341,952 ;' returned by the
school enrollment, is 422,929. Even if we should add
the professors in colleges and universities, teachers of
art and teachers of music, it would be difficult to reach
the latter enrollment.
In view of the fact that returns based upon school
or institutional reports are annually published by the
United States Bureau of Education, it is believed that
this field of inquiry might well be omitted in the cen-
sus. The difficulties so clearly appreciated by the editor
'^ Idem. 51.
'' Eleventh Census. Population, 2 : xxvii.
^ Idem. 304.
Illiteracy and Educational Statistics. 77
of the census monograph are of such a character that
the statistical returns need the uninterrupted treatment
and consideration of a permanent statistical system such
as might to advantage be further developed in the
Bureau of Education.
Davis R. Dewey.
Massachusetts Institute of Tectmology.
statistics of Occupations.
INTRODUCTION.
In any analysis of the population especially from the
standpoint of economics, it must be of interest to know
what the people are doing. From the standpoint of
economics population is looked upon as labor force.
This labor force may be employed in one direction or
another : in cultivating the ground, in extracting min-
erals from the soil, in turning raw material into forms
fitted to satisfy human wants, in transporting commodi-
ties from one place to another, in distributing products
among the different members of the community or in
rendering personal services. The skill and efficiency
with which these things are done is a question of the
quality of labor ; the number of people engaged in doing
these particular things is a question of the quantity of
labor and is susceptible of statistical treatment. In
every modern census therefore, we have the total popu-
lation, or at least those engaged actively in production,
classified according to occupation.
The first impulse in classifying population according
to occupation, is to follow the traditional lines of eco-
nomic development. We have been accustomed to
speak of agriculture, of commerce and trade, of manu-
factures, or industry, of the liberal professions and pos-
sibly of domestic service. We speak of one country as
prevailingly agricultural, of another as industrial, of a
third as devoted to commerce. The history of economic
civilization seems to use somewhat the same categories.
Thus, while we speak of early communities in the pas-
toral or agricultural stage, and think of the mediaeval
Statistics of Occupations. 79
period as one of traders and handicraftsmen, we charac-
terize modern nations as commercial-industrial. Even
economic categories may be made to follow much the
same lines : — as agriculture, mining and fishing are ex-
tractive industries, manufacturing creates form-utility,
transportation creates place-utility, mercantile trade dis-
tributes the products and the professions render eco-
nomic services thus satisfying human wants.
In most censuses, therefore, we find the population
distributed under the following heads.
Agriculture, often including mining and fisheries.
Trade and transportation.
Industry and manufactures.
Professional services.
Domestic services.
Unoccupied.
There are variations of this classification but by com-
bination they can generally be reduced to the above
headings.
With such a classification of population, interesting
comparisons can be made both in space and time. We
can show, for instance, the prevailingly industrial char-
acter of the population of England, and the agricultural
character of that of Italy. We can compare different
sections of the same country, as England and Ireland,
Prussia and Bavaria, the agricultural East Provinces of
Prussia, and the industrial Rhine Provinces. We can
make comparisons in time, showing the growing in-
dustry of Germany, or the increasing devotion of its
population to trade and commerce. We can detect, as
in the case of England, the tendency to employ less of
the national labor-force in the work of production proper,
and more in that of distribution and consumption.
The moment we begin to make use of such a general
8o American Economic Association.
classification, there is at once suggested the thought that
the details which lie behind these great classes, might
also be interesting. Under the head of agriculture we
might like to know, not only the divisions into agri-
culture proper, mining and fisheries, but also the number
of people devoted to cattle-raising, to gardening, to
forest-culture, the number of farmers compared with
farm laborers, etc. Under the head of industry we
should like to know what particular branches of in-
dustry, such as iron and steel, the textile industries,
making machinery, etc., occupy the population. The
number of lawyers, physicians and clergymen stiggests
itself at once as a suitable method of subdivision under
the head of professional services. There seems no limit
in this direction to the number of subdivisions. We
might like to know the general number of men engaged
in the building trades, or, for the purpose of studying
certain conditions, the number of brick-layers or hod-
carriers. The only question involved, apparently, is
whether an occupation is distinct enough to be classified
by itself. The census of Massachusetts, in 1885, dis-
tinguished horse-radish peddler as an occupation.
Here also we may institute comparisons in space.
We can compare the number of men engaged in the
iron industry in Germ.any, France, England and the
United States. We can compare the number of cotton
spinners in England and the number of spindles with
the number of cotton spinners in the United States, and
the number of spindles. Such international compari-
sons are diincult and must be made with caution because
of differing nomenclature. Comparisons restrict them-
selves, for the most part, to the number of men engaged
in leading industries.
Comparisons in time within the same country are
Statistics of Occupations. 8i
somewhat easier. We can trace from decade to decade
the increasing number of cotton spinners in England,
or the decreasing number of ribbon weavers, or the sta-
tionary state of the agricultural laboring population.
There may be some dispute about the interpretation of
these movements and care must be taken that the statis-
tics rest on the same basis. But with the necessary
caution we have here a useful instrument for stud)ing
economic changes.
These are the main uses of occupation statistics, but
they do not exhaust, by any means, the material. We
can correlate the figures for occupation with others per-
taining to the population in an almost endless variety
of ways. Some of these are as follows :
(a) Sex and occupation. This is very interesting, es-
pecially when considering the question of the employ-
ment of women in factories, the supplanting of men by
women, or the opening up to women of new methods of
earning a livelihood.
(b) Conjugal condition and occupation. This throws
light upon social conditions accompanying various occu-
pations, and upon practical questions, such as the em-
ployment of married women in factories.
(c) Age and occupation. This often gives rise to in-
teresting inferences in regard to the demand of particu-
lar occupations upon strength and activity, experience
and trustworthiness, capital and financial resources.
(d) Vital statistics and occupation. This correlation
has excited great interest as bearing upon the healthful-
ness of particular employments, danger to life and limb,
sanitary and moral surroundings, etc.
(e) Race and nationality and occupation. These are
almost peculiar to the United States and have particu-
6
82 American Economic Association.
lar significance both for sociological study and for prac-
tical questions of the political and economic develop-
ment of this country.
Many other correlations are possible as with illiteracy,
drunkenness aud crime, pauperism, physical and mental
infirmity, economic condition, etc., not to speak of
triple or quadruple combinations such as age, sex, con-
jugal condition and occupation. It is evident that we
have here a field for interesting comparisons and this
field has in fact been cultivated with considerable in-
dustry by the statistician, the sociologist, the social re-
former and the " crank." Our business, however, is
not to consider the results but to determine the quality
of the material and the validity of the methods em-
ployed.
The vital point of all statistics of occupations is the
question of classification. At first sight there would
seem to be no difiiculty in getting truthful answers to
the simple census inquiry, " Occupation !" It is a per-
fectly natural question, not calculated to excite resent-
ment nor inviting a false answer either from fear of
evil consequences or hope of gain. A few persons may
be pursuing such dishonest or shameful trades that they
wish to conceal them, but their number must be small
and they belong either in the criminal class, or from
the economic point of view in the unproductive class.
Nor would it seem that any person could be so ignorant
as not to know the occupation by which he gains his
livelihood. There are of course minor difficulties, as
when a man pursues two or more occupations, e. £■., &
country store-keeper who is also post-master, or as
when a man is farmer in summer and fisherman in
winter, but these minor difficulties are summarily
solved by demanding a man's principal occupation^
statistics of Occupations. 83
that is, the one which contributes most to his liveli-
hood, or which he follows the greater part of the year.
There is also the question of women and children who
assist their husband or father a part of the time in store
or shop, thus contributing to the support of the family.
They do not really belong to the occupation, in the full
sense of the word, any more than the man who writes a
letter to the newspaper is really a journalist. We are
not trying to measure- the exact amount of labor-force
expended in particular industries, although in certain
cases the influence of this outside competition on pro-
fessional remuneration may become an interesting sub-
ject of study.
The great difificulty in statistics of occupation is to
deterinine what you have in mind when you speak of a
person's occupation. Are you thinking of the particular
thing that a man does, as hoeing .potatoes, or sawing
wood, or selling dry goods ; or, are you thinking of the
product to which he contributes, such as a railroad-car,
or a wooden building ; or are you thinking of the place
where he works, as taking care of horses on a farm,
or in a street railroad stable ; or are you thinking of
the position which he occupies, as the contractor who
agrees to lay so many yards of stone work, or the mason
who actually handles the stones ? Take, for instance, a
boss-painter in a car-works shop owned by a railroad ;
is he a painter, or a car-maker, or a railroad employee,
or a foreman ? If you ask the man Iiimself he may
answer any one of these four things. Either the dis-
tinction must be in the mind of the enumerator and he
must determine how the answer is to be worded ; or he
may enter a compound answer, such as : — boss-painter,
car-works, Pennsylvania Railroad. In the latter case
the responsibility is simply carried one step further and
84 American Economic Association.
thrown upon the tabulator. The matter is complicated
by the fact that we often need a qualifying term, in
order to distinguish two occupations, bearing nominally
the same name, but which are really different ; and this
qualifying term is often the name of the thing produced,
the service rendered, or the place where the industry is
carried on. Thus, there is a real distinction between an
agricultural laborer, a railroad navvy and a day-laborer.
The qualifying terms, however, are not intended to
classify the men according to industry, but to distin-
guish the character of their occupation. A street car
driver is not the same thing as a private coachman,
although both handle horses. On the other hand, it
would be a little difficult to define the difference between
a hostler in a street car stable, and a hostler in a livery
stable.
In order to reach any systematic classification, it is
evident that we must keep one object in view and use
all our qualifying terms as interpreting that one object,
merely, and not as introducing any further classification
or supplying any further information. Any other
course lands us in inextricable confusion.
METHOD OF THE ELEVENTH CENSUS.
The principle of classification adopted by the Census
Office is explained in the following words : '
" The primary purpose of the classification in occupations in 1890
has been to show, so far as the returns of the census enumerators
would permit, the character of the service rendered or kind of work
done rather than to indicate the place of employment or the particu-
lar article made or worked upon. From the standpoint of the ' indi ■
vidual ' return this is really the only practicable basis for classifying
occupations especially as from the returns of the manufacturing,
mechanical, and mining industries we are enabled to secure through
the census an approximately accurate statement of the average num-
ber of persons of all sorts and kinds engaged in each particular indus-
' Eleventh Census. Population, 2;lxxvi, end.
statistics of Occupations. 85
try, as derived from the returns of the establishments directly engaged
in such production, and from which it is also possible to secure,
wherever necessary, a much more minute subdivision and correct
classification of the labor essential to the production of any specified
kind of goods."
Additional evidence on this point is afforded by the
detailed instructions to enumerators. Specimens of
these instructions are as follows :
' ' Do not confuse the agricultural laborer, who works on the farm
or plantation, with the general or day laborer, who works on the road
or at odd jobs in the village or town. Distinguish also between wood
choppers at work regularly in the woods or forests and the laborer
who takes a job occasionally at chopping wood."
" Stenographers and typewriters should be reported separately, and
should not be described simply as ' clerks.' "
' ' Distinguish between butchers whose business is to slaughter
cattle, swine, etc., and provision dealers who sell meats only."
"In reporting occupations pertaining to manufactures there are
many difiiculties in the way of showing the kind of work done rather
than the article made or the place worked in. The nature of certain
occupations is such that it is well-nigh impossible to find properly
descriptive terms without the use of some expression relating to the
article made, or place in which the work is carried on."
" Distinguish also between glovers, hatters, or furriers who actually
make or make up, in their own establishments, all or part of the
gloves, hats or furs which they sell, and the persons who simply deal
in but do not make these articles. ' '
' ' Do not use the words ' factory operative ' but specify in every
instance the kind of work done, as cotton-mill spinner, silk-mill
weaver, etc. "
' ' Avoid in all cases the use of the word ' mechanic ' and state
whether a carpenter, mason, house painter, machinist, plumber, etc."'
The office also disclaims,^ in words quoted from the
Tenth Census, the notion that there need be any corre-
spondence between these returns of occupations, and the
statistics of persons employed, derived from the returns
relating to Manufactures, Mineral Industries and other
industrial operations, where the establishment, and not
the individual, is the basis of tabulation.
'Eleventh Census. Instructions to Enumerators, 25-31, and Popula-
tion 2 ; Ixxvii.
^ Population 2 : Ixxviii.
86 American Economic Association.
The oflBcials of the eleventh census had a perfectly
correct notion of what they were trying to do in the
statistics of occupations. How far were they successful
in carrying out this method? This brings us to a sec-
ond great difficulty, namely, to determine what really
distinguishes one occupation from another and how many
classes of occupations it is necessary to have. The num-
ber of employments or kinds of work which differ from
each other in some respect is very great. The clerk in a
dry goods shop is not engaged in exactly the same kind
of work as the clerk in a tailoring establishment. It is
obvious, however, that we must throw employments of a
similar nature together in order to handle our material.
The principle upon which this is to be done is not very
clear but can be none other than the general one of the
kind of work done. That there is no concensus of opin-
ion on this question is shown by the fact that in the
census of 1850 there were 323 occupation designations ;
in i860, 584; in 1870, 338 ; in 1880, 265 ; and in 1890,
218 ; which last number in some of the tables is still
further reduced to 181. It is not necessary to be hyper-
critical in this matter, — a few minor occupations more
or less make but little difference, provided the more im-
portant ones are consistently arranged according to some
general principle. How far the eleventh census was
successful in such arrangement, can be determined only
by inspection. For this purpose, we take up the various
occupations arranged under the five great heads. Agri-
culture, Fisheries and Mining ; Professional Service ;
Domestic and Personal Service ; Trade and Transporta-
tion ; Manufacturing and Mechanical Industries.
The occupations grouped under Agriculture seem to
be logical and reasonably distinct. The great mass of
persons are either farmers, planters, or overseers (5,281,-
Statistics of Occupations . 87
557) ; or agricultural laborers (3,004,061) ; with a con-
siderable number of miners (349,592) ; and the rest are
arranged under the heads apiarists, dairymen and dairy-
women, fishermen and oystermen, gardeners, florists,
nurserymen and vine-growers, lumbermen and raftsmen,
quarrymen, stockraisers, herders and drovers, wood-
choppers, and " other agricultural pursuits."
The second great group, Professional Service, is also
reasonably successful ; the main categories, professors
and teachers, lawyers, physicians, clergymen, govern-
mental officials, present but few difficulties. There
might be some question whether musicians and teachers
of music belong to the same class, or why artists and
teachers of art, should be separated from musicians.
They do very much the same work.
Under Domestic and Personal Service there are
domestic servants, nurses and midwives, launderers and
laundresses, etc. There are, however, nearly two
million " laborers not specified " of whom we shall
speak presently.
Under Trade and Transportation we have a number
of occupations belonging to trade, such as merchants
and dealers, book-keepers, clerks and salesmen, huck-
sters and peddlers ; and others belonging to transporta-
tion, such as dra}'men, hackmen, teamsters, and street
railroad employees. The distinction between bankers
and brokers, on the one side, and officials of banks and
of insurance, trade, transportation, trust and other com-
panies, is not altogether clear.
But it is under the last head, Manufacturing and
Mechanical Industries, that the greatest difficulties are
met. We have, first, a series of well-defined occupa-
tions, such as bakers, blacksmiths, butchers, cabinet-
makers, candle, soap and tallow-makers, carpenters and
88 American Economic Association.
joiners, coopers, gunsmiths, locksmiths, and bell hang-
ers, masons, painters, glaziers and varnishers, plasterers,
plumbers and gas and steam fitters, tailors and tailor-
esses, upholsterers and wheelwrights, which remind us
of a list of the old English handicrafts. The factory
system, however, has evidently made itself felt and we
have cotton mill operatives, hosiery and knitting mill
operatives, mill and factory operatives not specified,
paper mill operatives, print works operatives, rubber
factory operatives, silk mill operatives and woolen mill
operatives. There is evidently considerable danger
here of confusing the industry classification with the
occupation classification. This danger becomes greater,
in some other designations which it was found neces-
sary to use, such as chemical works employees, gas
works employees, iron and steel workers, saw and plan-
ing mill employees, etc. This confusion becomes
greater when we have side by side carriage and wagon-
makers (not otherwise classified) and wheelwrights ; and
such general designations as apprentices, machinists,
mechanics (not otherwise specified), metal workers
(not otherwise specified), and wood workers (not other-
wise specified).
These things are pointed out, not in a spirit of criti-
cism, but as showing the difificulty of any system of
classification. It is evident that it would be compara-
tively easy with a very slight stretching of terms to
transpose large bodies of men from one occtipation to
another. This does not so much matter for any one
census, but it makes comparison between different cen-
suses in regard to the number of men of a specified
occupation extremely uncertain. This is the probable
explanation of some of the extraordinary percentages of
increase shown in the comparative tables for 1870, 1880
Statistics of Occupations . 89
and 1890, notwithstanding the conscientious efforts to
harmonize the occupation groups. For instance, taking
only 1880 and 1890, there has been an absohate decrease
in the number of agricultural laborers, while farmers,
planters and overseers have increased from 4,000,000 to
5,000,000. Bearing in mind that population increased
only 24 per cent and the total number of persons en-
gaged in gainful occupations only 30 per cent, it is
rather astonishing that lumbermen and raftsmen in-
creased 115 per cent, woodchoppers 165 per cent, fisher-
men and oystermen, 50 per cent, and miners 50 per cent.
So, too, it is rather extraordinary, under professional ser-
vices, that artists and teachers of art should have in-
creased 147 per cent, musicians and teachers of music
100 per cent, while professors and teacliers increased
onlv 50 per cent. Under the liead of trade and trans-
portation, book-keepers, clerks and salesmen increased
nearly 90 per cent. Under manufactures and me-
chanical industries, we have carpenters and joiners in-
creasing 60 per cent, and painters, glaziers and varnish-
ers, 69 per cent. On the other hand we have an abso-
lute decrease of cabinet makers, carriage and wagon
makers, coopers, gold and silver workers, and wheel-
wrights.'
Doubtless many of these cases can be explained as due
to changes in industry and others probably represent the
more careful enumeration and classification of the
eleventh census. But such facts introduce an element
of uncertainty into all study of changes in employment
from decade to decade.
On the whole, therefore, although the eleventh census
propounded a logical system of classification, it does not
seem to have been particularly successful in carrying it
'Eleventh Census. Population, 2;ci,ff.
go Americayi Economic Association.
out. Whether this was owing to the inherent difficulty
of the subject or to the lack of care and intelligence on
the part of the enumerators, it is impossible for an out-
sider to say.
It must be noticed, too, that the grand groups. Agri-
culture, Professional Service, Trade and Transportation,
etc., are made up by combining the occupation groups.
These grand heads, at first blush, would seem to be a
classification by productive industry, and we are thus
seeking an industrial grouping on the basis of occupa-
tional returns. This leads to some anomolous results.
It is true, perhaps, that a book-keeper in a cotton mill
may be said to belong to trade, a porter in a brewery to
transportation, and a laborer in any of these undertak-
ings to be rendering personal service. But such a dis-
tinction is an unnatural one and gives an air of unreality
to the grouping. It does not seem quite right that
engineers and firemen (not locomotive), should be put
down to domestic and personal service, when the mass
of them are, probably, iri factories and workshops. The
most serious item is the 1,913,373 laborers not specified,
who constitute nearly one-half of the persons classified
under the head of domestic and personal service. Doubt-
less man}- of these are really agricultural laborers, who
are often returned simply as laborers. 'Many of them,
however, must belong to manufacturing and mechanical
industries. It is not quite clear how, starting with our
principle of occupation statistics, we can group them into
these great divisions. But it is quite clear that the pro-
cedure in itself is not particularly satisfactory. The re-
sult of this criticism is that we must be cautious about
using these figures for comparative purposes, either in
space (sections of the country), or time (increase or
decrease of particular industries). On the other hand
Statistics of Occupations. gi
where simply indications are needed, as the appearance
of a new industry or the increased employment of women,
or the prominence of certain nationalities in general lines
of industry, such as mining, or iron and steel-working,
they may be used. These facts will come out more
clearly when we examine critically the use the census
has made of these figures in its comparative tables. We
shall not pretend to give results except as illustrations
of this great question of method.
RESUI,TS OF THB ELEVENTH CENSUS AND METHODS OF ANALYSIS.
The Number of the Employed. — The first figure is the
number of persons engaged in gainful occupations in
the United States in 1890. For this purpose are con-
sidered only persons ten years of age and over. The
total number was 22,735,661, out of a population ten
years of age and over of 47,413,559. This makes 36.3
per cent of the total population, or 48 per cent of the
population ten years of age and over."
This figure of course is fundamental and shows that
a little over one-third of the total population supports
the remaining two-thirds. Comparisons in space are
shown on the following page of the census volume, where
the number of persons ten years of age and over engaged
in gainful occupations is compared for each division and
each state and territory of the United States. There are
considerable variations, the proportion of persons en-
gaged in gainful occupations of the population ten years
and over varying from 41 per cent in West Virginia to
67 in Alontana. The cause of this variation is doubtless
the age constitution and the character of the prevailing
industries. In a state like Montana we should probably
find a large number of male adults, engaged in mining
'Eleventh Census. Population, 2:lxxx.
gi A?nencan Econoinic Associatioyi.
and other occupations where only men are employed.
There would be few women and children and little or
no employment for them. Tlie proportion of persons,
therefore, engaged in gainful occupations will be large.
In an older state there would be more women and
children and, if the opportunities for employment were
small, the percentage of persons engaged in gainful
occupations would be small. We may have an inter-
mediate condition of things, namely, a state like Rhode
Island (56.4 per cent), where there is a large number of
women and children and where opportunity is given for
their employment in factories. An exceptional case
seems to be a state like South Carolina where 55 per
cent of the population ten years of age and over are en-
gaged in gainful occupations. The explanation here is
that large numl:)ers of negro women and children work
in the field. Our comparisons in space amount to but
little in themselves and need to be explained by differ-
ences of age constitution and industrial environment.
Comparisons in time might seem to be useful as show-
ing whether an increasing or decreasing proportion of
the population is engaged in productive industry. The
census shows' that, while in 1890 36.3 per cent of the
total population and 48 per cent of the population ten
years of age and over were engaged in gainful occupa-
tions, in 1880 the per cents were 34.7 and 47.3 respectively.
This would seem to show an increase in the number of
persons. The difference, however, is due to the fact
that the proportionate number of children in 1890 (at
least those returned by the census) was considerably less
than in 1880.
Occupation and Sex. — The first analysis of occupa-
tion statistics is by sex, that is, to .show the proportion
^ Ibid.^ Ixxx.
Statistics of Occupations. 93
of male and female persons engaged in gainful occupa-
tions. Many interesting questions are connected with
this distinction, especially when we make note of clianges
in time, differences in space, characteristics of particular
occupations and of particular elements of the popula-
tion, such as the colored, tlie foreign-born, the children
of the foreign-born, particular nationalities, etc.
In making this analysis by sex there are two methods
which must be kept distinct, for they serve different
purposes. In the first place, we may say that out of
one hundred of the population ten years of age and over,
engaged in gainful occupations, 82.8 per cent were
males and 17.2 per cent were females. And we may
carry this out for various occupations as follows : '
Males. Females. Total.
Agriculture, fisheries and mining, 92.5 7.5 100
Professional service, 67.0 33.0 icx3
Domestic and personal service 61.7 38.3 100
Trade and transportation, 93.1 6.9 100
Manufacturing and mechanical industries, 79.8 20.2 100
This method is interesting as showing in a general
way how far the two sexes contribute to the number of
persons engaged in different industries. It is a bad
method, however, the moment we attempt to make
comparisons either in space or time. For, the propor-
tion of the sexes being different in different sections or
at different times, that would nattirally make a differ-
ence in the proportion engaged in gainful occupations.
The second method consists in determining, out of
one hundred persons of either sex, how many are en-
gaged in gainful occupations. It thus appears ^ that ']']
per cent of the male population ten years of age and
over, are engaged in gainful occupation, while onh' 17
per cent of the female population ten years of age and
' Idem, -SLC
^ Idem, Ixxxiii.
94 American Economic Association.
over are thus engaged. This method answers the real
question as to the employment of women as compared
with men. It also permits comparisons in space and
time. We have for instance, the comparisons for differ-
ent parts of the Union. In the North Atlantic division
20.5 per cent of the female population ten years of age
and over are engaged in gainful occupations, while in
the North Central division only 12.5 per cent are thus,
engaged. This points to the factory industry in the
first group of states. As far as time is concerned it
would seem that the employment of women is increas-
ing, for in 1880 only 14.7 per cent of, the female popula-
tion ten years of age and over were engaged in gainful
occupations, as compared with 17.0 per cent in 1890.
The method has its limitations, as we shall see further
on, but on the whole it seems to be valid '
Occupation and Age. — The second correlation is that of
determining the ages of the persons engaged in gainful
occupations. Here as before we have two methods.
You may take one hundred persons in gainful occupa-
tions and show how many are from ten to fourteen
years of age, from fifteen to nineteen years, from twenty
' A third analysis maybe mentioned in this connection which is valid
and interesting, /. ^., to show how many of 100 males or 100 females-
engaged in gainful occupations are in each group. {Idem, cxi and
cxii ) . The result for the Uuited States is as follows :
Males. Females.
Agriculture, fisheries and mining, 44.3 17.4
Professional service, 3.4 8.0
Domestic and personal service, 14.3 42.6
Trade and transportation, 16.4 5.8
Manufacturing and mechanical industries, 21.6 26.2
This shows in which industries the males are chiefly employed and
in which the females. The comparison is extended to states and ter-
ritories and for the three censuses, 1870, 1880 and 1890.
Statistics of Occupations. 95
to twenty-four years, etc' This method is not very
satisfactory for the reason mentioned above, that com-
parisons in time and space are difficult because of the
changing age constitution.
The second method is to take the total number of per-
sons in each age-group and show the percentage engaged
in gainful occupations. We have such a comparison^
showing also the distinction of sex.
The chief question of interest in regard to occupations
by age periods is the employment of. children. It ap-
pears that of males ten to fourteen years 11. 2 per cent,
and of females 5.9 per cent, are engaged in gainful oc-
cupations. " As compared with 1880, this shows a very
great diminution in the proportion of children at work,
although the exact decrease cannot be determined on
account of the slight difference in the age classification
of persons occupied in 1880 as compared with 1890. At
the census of 1880 there were 835,187 males and 293,169
females ten to fifteen years of age at work, constituting
respectively 24.4 and 9 per cent of the whole number of
males and females of the ages stated." '
A similar comparison of the children ten to fourteen
years in each of the elements of the population ma}- be
made. This shows that of the colored children ten to
fourteen years of age, the percentage engaged in gainful
occupations is 29.7, of the foreign born it is 15.6, of the
native white of foreign parentage, 7.5, and of the native
white of native parentage, 7.4. These figures apply to
males ; the corresponding figures for females are much
smaller.
'^ Idem, cxxiii.
' Idem, cxxi. A third analysis is to show the distribution of 100
males (or females) of each age class, among the different grand occu-
pations [Idem, cxxiii). This comparison is interesting and valid,
although it is not so generally useful as the one just mentioned.
' Idem, cxxii.
96 America7i Economic Association.
Other figures for children ten to fourteen years of age
show that, out of 100 male children engaged in gainful
occupations, 63.9 are engaged in agriculture, o.i in
professional service, 12.6 in domestic and personal
service, 9.8 in trade and transportation, 13.6 in manu-
facturing and mechanical industries. The correspond-
ing figures for females are : agriculture, 41.4, professional
service, .2, domestic and personal service, 38.3, trade
and transportation, 2.6, manufacturing and mechanical
industry, 17.5.^
The next correlation would naturally be between oc-
cupation and conjugal condition. We need not go into
the results except to say it appears that, of the total num-
ber of married women, only 4.6 per cent are engaged in
gainful occupations, and that tnore than one-half of these
are negro women. ^ The principal occupations are agri-
culture, domestic service and manufacturing.^
Our comparisons thus far have been of a general
nature and apply for the most past to the whole body of
persons engaged in gainful occupations distinguished
according to certain general marks such as sex, age and
conjugal condition. It is probable that even with these
grand groups we must be cautious about extending our
comparisons very far, either in time or space, because of
the imperfection of our material. Especially in regard
to particular occupations we must be cautious on ac-
count of the uncertainty of the classification.
We come now to a study of peculiar interest to the
United States, especially in connection with occupations,
namely, the study of the population according to race,
birthplace and parentage. The statistics are carried
^ Idem, cxxiii, second table.
''■Idem, cxxvi, table and cxxix, first table.
^Idem, cxxix, second table.
Statistics of Occupations. 97
out in great detail in the census analysis. The ques-
tion is how far this analysis is based on correct princi-
ples and how far the results are trustworthy.
It is necessary to remark in the first place that direct
comparison of these different classes with each other is
quite useless because of the differences in age constitu-
tion. The fact that 58.1 per cent of the foreign white
population of ten years of age and over are engaged in
gainful occupations as compared with only 43.6 per cent
of the native white' means nothing, because we know
that among the foreign whites adult males are largely
represented, while the native whites include many more
women and children. Many of the tables in the an-
alysis are of this character and are entirely superfluous
if not misleading.
These statistics may be used for the purpose of
answering two definite questions : (a) How much each
element contributes to the labor force of the United
States or to the labor force employed in a particular in-
dustry ; and (b) How the labor force of each element, as
for instance the foreign-born, distributes itself in differ-
ent industries.
The most important of these questions is the first.
That can be answered directly. For instance, out of
the 22,735,661 persons engaged in gainful occupations
5,104,757, or 22.5 per cent are of foreign birth. ^ That
figure measures the contribution of the foreign-born to
the labor force of the United States. We can go a step
further and add to the foreign-born the native whites of
foreign parents (3,542,408) making 8,647,165 persons of
foreign extraction, or 38 per cent of the total labor force.
'^Idem, cxiii, table.
^ Idem, cxvii, table.
98 A-merica7i Econoinic Association.
By a further step we can show how each element con-
tributes to the labor force in each grand group of
occupations. For instance, to agriculture the native
white of native parents contribute 56.8 per cent, the
native white of foreign parents 8.8, the foreign whites
14.5, and the colored 19.9.'
We can extend this method to particular occupations
and show what portion of the labor force is contributed
by each element of the population. Such a table is
given both for males^ and for females^ in certain occupa-
tions. Some of the results seem exceedingly probable.
For instance, the foreign whites constitute only 9.5 per
cent of the farm laborers and only 14.7 per cent of the
farmers, planters and overseers, while they constitute
44.5 per cent of the gardeners, florists, nurserymen and
vine growers, and 48.7 per cent of the miners and
quarrymen. They constitute 21 per cent of the clergy-
men, but only 6.7 per cent of the lawyers. They con-
stitute 49.7 per cent of the restaurant and saloon keepers
and 71 per cent of the tailors. The native whites of
foreign parents constitute 48 per cent of the apprentices
and 45 per cent of the plumbers and gas and steam fitters.
These figures are interesting as showing the way in
which certain occupations are going into the hands of
certain elements of the population.
We may, if we choose, subdivide our foreign-born
into nationalities according to country of birth. We
can thus show that of 100 foreign-born persons engaged
in gainful occupations 28.7 were born in Germany, 20.4
in Ireland, 13.3 in Great Britain, 10.2 in British
' Ibid.
'■Idem, cxviii.
^ Idem, cxix.
statistics of Occupatioyis. 99
America and so on.' The same method is employed for
each of the grand groups of occupations.
The census goes even a step further and attempts to
analyze the total contribution of persons of foreign birth
and descent to the labor force of the United States.
For this purpose it takes the number of white persons
ten years of age and over, having mothers born in for-
eign countries, and shows the number and per cent en-
gaged in gainful occupations. The comparison be-
tween different nationalities' is useless, because the dif-
ferences are due simply to the differences in the ages.
The table on the following page is perhaps justifiable as
showing the contribution of each of the foreign elements
to the labor force in each occupation. It may be
doubted, however, whether this analysis is not carrying
refinement a little too far. Kven if the principle is cor-
rect, the uncertainty of the original data is sufficiently
great to make us doubt whether the labor is worth the
pains.
We turn back now to our second method of analysis.
We may like to know how each element of the popula-
tion, the foreign-born, colored, native whites of foreign
parents and native whites of native parents, distributes
itself over different occupations. This is shown in a
table" where it appears, for instance, that the foreign
white population is employed, 25.6 per cent in agricul-
ture, 2.2 per cent in professional service, 26.9 per
cent in domestic and personal service ; 14 per cent in
trade and transportation, and 31.3 per cent in manu-
facturing and mechanical industries.
This same system is carried out for particular occupa-
' Idem, cxlvii.
' Idem, civ, second table.
' Idem, cxvi.
lOO American Economic Association.
tions and sex' for those born in Germany, Ireland, Great
Britain, etc., for grand gronps of occupations ; ^ for the
minor classes of occupations and sex ; ^ for persons hav-
ing mothers born in certain specified countries for grand
groups of occupations, and sex ; ^ and finally for sex,
mother's birthplace and the minor classes of occupa-
tions.^
It must be observed in regard to this second class of
statistics that we, perhaps, are going a little too far. The
practical question we have in mind, probably, is what
sort of occupations our immigrants choose. We are
measuring, as it were, their relative capacity for indus-
trial life, and basing upon it prognostications as to the
future. It must be observed, however, that the choice
of an occupation depends partly upon sex and age, and
thus again differences in age and sex constitution may
vitiate our comparisons.
Again, we may use these correlations of occupations
with race, birthplace and parentage to answer certain
specific questions ; as, for instance, whether the native
or foreign born are most inclined to employ their wo-
men and children in gainful occupations. Thus, it ap-
pears that, of the colored female population ten years
and over, 36.2 per cent are engaged in gainful occupa-
tions ; of the foreign white, 19.4 per cent ; of the native
white of foreign parentage, 20.8 ; and of the native
white of native parentage, 10.9 per cent. But these re-
sults are very doubtful. Taking the last two percenta-
ges it would seem that the native whites of foreign pa-
rents are more heavily represented in gainful occupa-
' Idem, cxx, f .
^ Idem, cxlix.
^ Idein, cl-clv.
* Idem, clviii, Table.
^ Idem, clix, ff.
Statistics of Occupations. loi
tions than the native whites of native parents as far as
females are concerned. If we look at males, we find
that of native white males of foreign parentage 70.3
per cent, and of native white males of native parentage
73.9 percent, are engaged in gainful occupations.' Does
this mean that the daughters of foreign parents are more
inclined to work than the daughters of native parents,
while the reverse is true of the sons ? The explanation
is found in the age classification, where it will be found
that, at those ages where females are most employed,
namely from 15 to 19, and from 20 to 24, the native white
females of foreign parentage are more numerously
represented than the native white females of native
parents. In plain words this great tendency of females
of foreign parentage to go into gainful occupations is
due simply to the demand for domestic servants.
The remaining analyses of occupations according to
illiteracy,- citizenship,' and ability to speak English,'
seem to me to be useless and to confuse cause and effect.
The occupation is not the cause of these things, but it
is owing to the fact that certain nationalities which have
been here for a greater or a shorter time are thrown into
certain occupations, that we have these figures.
Finally, the census made an effort by direct inquiry
to find out whether persons were unemployed in their
principal occupation during the year, and for how long
they were thus unemployed. The investigation does
not seem to have been very successful, and the data are
so uncertain that the detailed analysis by occupations^
seems to me entirely useless.
1 Ibid.
"^ Idem, cxxi-cxxxiii.
' Idetn, clxiii-clxvii.
* fdeni, cxxxiv-cxxxvi.
'Idem, cxxxvi-cxlii.
102 American Economic Association .
METHOD AND SCOPE OF THE TWEI
Per cent of total acreage.
Acres under wheat.
" corn.
' ' oats.
" barley.
" cotton.
" green crops.
" orchard.
" other crops.
Total acres under crops.
Per cent unimproved of total acreage.
Land.
Fences and buildings.
Livestock, (a. Working animals, b. Animals kept for other
purposes, c. Yearly cost of working animals).
Implements and machinery, (a. Cost of machinery on hand,
b. Average cost of machiner3r per year. c. Rent jjaid for
itinerant m.acliines. d. T.^tril cost of machines per j'ear.
Cost of fertilizers.
Value of products.
a. Number of members of farailj' engaged in wox-k on the farm.
b. Xumbirof hired laborers emploj'ed.
c. Total number of working days by hired labor during the
year.
d. Amount paid in wages during the year.
e. Average length of employment (in da)'s) rer year.
The same classification for farms of each group of sizes, as shown in
Table i.
TABLE 3. — Distribution of Yearly Expenditure According
TO Size of Farms. ^
(Total expenditure of class ^= 100 per cent).
Farms under 10 acres :
Per cent of total expenditure for wages.
" " " for fertilizers.
" " " for machinery.
" " " for live stock.
And so for the farms of various sizes.
1 Buildings have not been included in this table, as their yearly cost is the
resultant of so many uncertain elements that it would be difficult to get any ac-
curate returns on that point.
2i8 American Ecotiomic Association.
TABLE 4. — Farms Partly Owned and Partly Rented.
a. For fixed money value, or
b. For share of product.
I. Farms of less than 10 acres :
Less than 10 per cent of farm owned.
10-25
25-50
50-75
75-100
And so for the farms of various sizes.
Parm and Home Proprietorship and Real Estate Mortgage
Indebtedness.
I. INTRODUCTION.
A criticism of the work of the eleventh census is
especially difficult, because the various parts of the work
are of such different quality, and because only those who
have had some experience can appreciate the difficulties
which lie in the way of a successful transaction of a sta-
tistical investigation on so large a scale and of such
complexity. No other part of the eleventh census, or
of any census, was surrounded with so many difficulties
as the inquiry which is reported in the two volumes on
Farm and Home Proprietorship and Real Estate Alort-
gages. Such an inquiry was entirely novel, at least on
so great a scale. Statistics of mortgage indebtedness
had, indeed, been gathered by some foreign countries
and by the labor bureaus of several states in this country.
The most notable of these was, perhaps, that of Mr. J. S.
Lord, who, as secretary of the Illinois labor bureau,
had made in 1888 an admirable report on mortgages in
Illinois.' This report really furnished the model for the
method of handling the statistics obtained in the cen-
sus inquiry. But no attempt had ever been made before
in connection with an}' national census enumeration to
cover a subject so vast and so intricate in its details.
The novelty and lack of precedents were not, how-
ever, the only difficulties, especially in the wa)- of get-
ting information concerning real estate mortgage indebt-
edness. The inquiry was set on foot at the last moment
of preparation for taking the census. It concerned mat-
' Illinois Labor Statistics Bureau. Fifth Biennial RcpoH.
220 America?! Economic Association .
ters on which people generally, and Americans par-
ticularly, are very averse to giving information. It was
denounced as inquisitorial, as prying into private affairs
and extending- government authority to the detriment of
the individual. So intense was the feeling that some
people advised resistance to the Census Office in its at-
tempt to get this information.
Again, the data were of such a character, and the terri-
tory to be covered was so large, that it was quite hope-
less to expect accurate returns if they were collected in
the usual way. The individuals interested could not be
trusted togive correcth the facts concerning the existing
iudebtedness even if the}' gave them to the best of their
knowledge. Incumbrance assumes many guises and
exists under many names. To secure a terminology
which would be universally applicable and understood
wa:; out of the question, and a wide acquaintance with
the customs of different sections of the country was nec-
essary in order to frame a proper schedule of questions.
All these diificulties made the task proposed as difficult
as its masterly success was brilliant and complete. If it
be true, as just now remarked, that no statistical inquiry
ever undertaken by any government was more difficult
than the collection and proper presentation of the facts
of mortgage indebtedness, certainly noue has ever been
carried to conclusion " with more skillful care and
conscientious fidelity." Its success far exceeded the
expectation of statisticians who had studied such matters
for year.s. The value of the information obtained well
repaid the expense of getting it, and has probably recon-
ciled the people to a renewal of the effort. A brief review
of the means taken to get the data wanted will bring out
clearly both the difficulties and the way in which they
were met.
Farm and Home Proprietorship. 221
As has been already said it Avas at the last moment of
preparation that Congress directed the CensTis Office to
undertake these investigations. For several reasons it
was decided not to entrust the work entirely to the regu-
lar enumerators, but to reh' upon several sources of
information. This vv'as a wise decision. Only the less
objectionable questions concerning ownership and debt
were put upon the population schedule.' These were as
follows :
" Is tlie hom.e you live in hired, or is it owned by the
head or by a member of the family?
If owned by the lieid or a member of the family, is
the home free from mortgage incumbrance?
If the head of the family is a farmer, is the farm which
he cultivates hired, or is it owned by him or by a mem-
ber of his family ?
If owned by the head or a member of the family, is
the farm free from mortgage incumbrance ?
If the home or farm is owned by the head or a mem-
ber of the family, and mortgaged, give the post office
address of the owner."
The cases in which the enumerators failed to get
answers vv'ere investigated through the mail and by
means of special agents. The results were gratifyingly
complete. Of the total farm families only 1.24 per cent
were not heard from on the question of ownership, and
of the home families only 2.25 per cent ; while the
determination of the fact of incumbrance was unsuc-
cessful for 1.26 per cent of the farm owning families
and for 2.10 per cent of the home owning families. As
to the amount of incumbrance, 18.35 P^^^ ^^"^^ o^ ^^^
farm owning families and 25.98 per cent of the home
' Eleventh Census. Population, i : ccv, Inquiries 26-30.
222 American Economic Association.
owning families were not heard from.' In other words,
the returns are practically complete for ownership and
for the fact of incumbrance.
In deciding upon the plan of investigation into mort-
gage indebtedness similar skill and wisdom were shown.
Consideration of the plan adopted will be entered on
later. Meantime it should be noted that the work was
very thoroughly done. As the superintendent of the
census put it, " the agents of the Census Office have . . .
overhauled the records in every state and territory.
They have travelled on horseback and on foot through
the most sparsely settled districts of our vast domain in
search of mortgages, and have done their work so in-
dustriously and so thoroughly that we now have on file
in Washington as a result of their labor the abstracts of
about nine million mortgages."*
In short, the volumes under consideration are easily
among the best portions of the census. They show
painstaking conscientiousness in the manipulation of
the data, a thorough knowledge of the proper methods
of approaching the subject, an appreciative sense of the
difficulties and defects, and a skilled knowledge of the
necessary methods. An examination of the first few
pages of either volume furnishes strong proof that the
editors have in a high degree what may be called a
sense of statistical propriety. For there we find, what
is too rare in census reports, a full account of the
history of the projects to collect the statistics, a recital
of the instructions to enumerators, a detailed statement
of the methods employed in the tabulation, and a num-
ber of other details explanatory of the technicalities
employed in marshalling the returns for analysis. The
^ Eleventh Censiis. Farms and Homes. 7.
-Am. Stat. Ass'n. Publications 2 : 356 (1891).
Farm and Home Proprietorship. 223
presentation of these matters is very helpful to the
reader in forming a critical judgment of the volumes.
The work is, then, of a high grade of excellence, and
there is but little room for important criticism. In
addition to the advantage derived from the peculiar
suitableness of the editors for their work the inquiry
had the benefit derived from a high grade of special
agents. They seem to have been, in the main, men
picked especially for the collection of the statistics of
mortgages. These reflections lead to one or two com-
ments of a general character :
II. CHARACTERISTICS OF THE TWO VOLUMES CON-
SIDERED TOGETHER.
1. The investigation into the subjects under review
was so highly successful that it should, by all means, be
repeated. After the experience recorded in these two
volumes there can be no doubt, as indeed the editors
themselves point out, that the facts sought can be
ascertained accurately and with a high degree of com-
pleteness. Commissioner Carroll D. Wright said as
long ago as 1887 : " Questions of renting, of ownership, of
the acreage of farms and of alien ownership are entirely
within the possibilities of census taking, without enlarg-
ing the field of operation." We may now add that the
feasibilit}' of collecting mortgage statistics on a large
scale is also demonstrated.
2. The same editors should be in charge of the next
investigation, and, as far as possible, the same special
agents. This is a matter in which experience counts
for a great deal. If the inquiry is committed to the
same management as before, the country may reasonably
hope for an improvement in the work. If it is en-
trusted to new editors, however able they may be to cor.
224 American Economic Association.
rect any mistakes of their predecessors, they will surely
waste time and impair the work h\ having to learn
lessons which the previous editors already know.
IMoreover, it is absolutely essential that this and kin-
dred portions of the census be kept absoliitely free from
the suspicion that they are being used for any but
scientific purposes and the promotion of the public
good.
3. Fault might be found with the bulk of the volumes.
It is a question whether all the important information of
the two could not have been presented in one volume by
judicious grouping of related data. This criticism is not
of much weight except in so far as it is based on a plea
either that such conbinations of figures could be made,
or that part of the matter included in the reports is
unnecessary or fails to teach anything of importance.
That the latter is to a certain extent true may be illus-
trated by reference, for example, to the volume on
proprietorship.' The reader has just been occupied with
a discussion of the relation of building and loan associa-
tions to home ownership and is transferred — without
break — to "sales of real estate in Massachusetts" in
order to learn the frequency with which the land changes
hands. The statistics quoted from Massachusetts are so
meagre and throw so little light on the sirbject that they
are of very little value for the purpose and might as well
be omitted. This is all the more true because the census
itself has no figures with which to supplement those from
Alassachusetts.
4. A more important, and perhaps better founded,
criticism may, however, be directed to another point.
The various groupings of the returns follow one another
without sufficient pains being taken to correlate them
' Eleventh Census. Farm and Home Proprietorship, 52, f.
Farm and Home Proprietorship . 225
when they are related, or to mark clearly the transition
from one to another when they are not closely related.
The transition is too abrupt. Both volumes would be
greatly improved if they each had, first, a short summary
of the conclusions to be drawn from each grouping of the
figures, — that is, from each set of tables ; and, secondly,
a general, but not too condensed summarj' of the main
results of the whole investigation. For example, we find
in the report on mortgage indebtedness coordinate pre-
sentations of the following topics : — (i) the ratio of mort-
gage indebtedness to the true value of all taxed real
estate ; (2) a comparison of incumbrance with the value
of the mortgaged acres ; (3) a comparison of incumbrance
with selling price ; (4) a comparison of incumbrance
with farm value, per acre. A better arrangement would
be to make a general head of " the relation of incum-
brance to value," and put the others as sub-topics. In
this way their relations would be clearer, comparison
would be easier, and the presentation could be made
more concise. If a similar plan were followed wherever
possible, and the suggested summaries of the principal
results made, the volumes would doubtless be more ser-
viceable to the average user of them. They present a
kind of pathless wilderness of figures. A few pathways
cut through them would introduce the orderliness of the
well planned grove into the natural forest.
5. The diagrammatic presentation is, perhaps, unnec-
essarily profuse. Graphic representation of facts is, of
course, sometimes necessary and nearly always helpful,
especially if the statistics in a tabular arrangement do
not readily and clearly show the relationships which
they are intended to bring out. Numerous diagrams of
15
226 Americati Economic Association.
the character of those given here are more desirable in
volumes with a wide popular circulation.^
III. THE VOLUME ON PROPRIETORSHIP AND INDEBTED-
NESS OF FARMS AND HOMES.
The volume opens, as has already been pointed out,
with a history of the movement which led to the investi-
gation, a description of the plan for collecting the
statistics, and an outline of the scope of the inquiry.
This is followed first by the presentation and analysis of
the facts of proprietorship, the word being used in the
legal sense to include botli owners and tenants, and then
by the discussion of value and incumbrance and the
interest on incumbrance. The next eighty pages are
devoted to a description of the proprietors and lastly
come the general tables, which occupy the second half
of the volume.
Terminology. — The first question one asks in consider-
ing such a work as this is : Was the inquiry worth while ?
In the case of this investigation the question has special
significance because of the fact that the same ground is
already partly covered in another way by another por-
tion of the census. The statistics of agriculture include
the number of farms and their proprietorship. In that
case the farm is the unit of investigation ; in the present
work, the family. Again, the statistics of population
include a report on dwellings and families which pre-
sents for a portion of the subject, data of the same gen-
eral kind as are given in the volume under discussion.
In the one case the dwelling is the unit ; in the other,
'As an illustration of such, matter which adds but little to the worth
of the report may be mentioned the diagrams which face page 122 of
the volume on mortgages. However, this again, is a comparatively
small matter, and is mentioned only in behalf of brevity.
Far-in and Home Proprietorship . 227
the family. There is therefore in these various investi-
gations more or less duplication of work and of results.
While there may be some question whether all the
necessary information concerning ownership and in-
debtedness could not have been gotten by the enumera-
tion of " farms " and " dwellings and families," there is
none, in the opinion of the reviewer, concerning the de-
sirability of presenting that information in the form in
which it is given in this volume, — that is to say, with
the family as a unit. The value for sociological pur-
poses of such a mode of presentation is very great.
Whatever objection that unit is open to — and it is open
to much — it is a better unit for estimating the economic
and social conditions of the average American than an
area called a farm, which may vary in extent from 5
acres to 1,000, and in value from $50 to $75,000 ; and
for similar reasons better too, as a unit, than the
" dwelling. "
Although, however, the sociological advantage of pre-
senting the data with the famil}- as a unit is very great,
objection may be made to the meaning of the term as
defined in the census. A reader seeking information
about the distribution of wealth would naturally turn to
this volume in order to learn something about the
ownership of property by individuals and families, as
these words are familiarly used. Unfortunately, how-
ever, the editors of the report were hampered by having
to use as a unit the term family in a technical sense
already fixed for them by the census reports on popula-
tion. Whatever fault is to be found with this use of the
word, the editors cannot, therefore, be charged with it.'
It is to be regretted that a classification of families was
'For the definition of a family in the Instructions to Enumerators,
1890, see above p. 62.
228 American Economic Association.
not given in connection with the figures on ownership.
Such a classification as was made in the census of Mass-
achusetts' in 1895 would have added much to the value
of the work under discussion for all who looked to it for
light on the matter of prosperity of our people. The
Massachusetts report classifies families according to the
number of persons in them, and gives the number of
each class. For example, in North Adams we find that
there were 550 families containing two persons each ;
348 containing seven persons each, etc' Of course, the
addition of such a classification of " owning and occupy-
ing families " would increase the work of gathering
and handling the returns, but not to any great extent,
since such a classification is made for other purposes.
At any rate much would be gained even if the classifica-
tion were carried only so far as to enumerate occupants
of hotels, almshouses, etc., by themselves so that they
could be excluded from the total in calculating the per-
centages of owning families, etc. To be sure, " con-
sidered as regards great bodies of population the pres-
ence of these large ' census families ' does not probably
have any very appreciable effect on the average size of
the normal familj'."' But it must vitiate the statistics
for small political units, perhaps in some cases, for
whole states.
Instructions to Enumerators. — There are several points
in the instructions* on which there is at least room
^ Mass. Census of 1895, i : 339-455.
'^ Idem, I : 387.
^ Eleventh Census. Population, i : clxxxviii.^ ' [Normal families
and artificial or arbitrary families such as hotels, prisons, schools,
camps, etc., were distinguished by the Mass. censuses of 1885 and
1895. The average size of the normal families was 4.45 persons
in 18S5 and 4.57 in 1895. The average size of all families was only .13
persons larger in 1885 and .08 persons larger in 1895. — W. F. W.]
* Eleventh Census. Farms and Homes, 5.
Farm and Home Proprietorship. 229
for a difference of opinion. The third one reads :
" If a person owns and cultivates wliat has been two or
more farms and all are not mortgaged, the several farms
are to be counted as one farm and as mortgaged." If
we remember that the unit of investigation is the family,
this instruction is correct so far as it guards against the
duplication of families in the returns. But when we
come to consider the value and incumbrance of the farms
reported as occupied by their owners, there is danger
that obedience to this instruction may have swelled the
figures in such a wa)- as to be misleading. There are
cases in the middle vi^est in which a man who lives in
town owns a farm which he supervises, leaving the
immediate care to a salaried superintendent. The owner
cultivates but does not occupy. He cannot be included
among owning occupiers or among hiring occupiers.
For the purpose of getting the total value of farms, the
case is not different, if the owner lives on and cultivates
one farm and owns and cultivates another in the manner
described. The result of "lumping" the farms is that
it swells the value of the owned and occupied farms and
diminishes the apparent relative burden of incumbrance.
In the seventh instruction we read : " If the same person
ov/ns and cultivates one farm and hires and cultivates
another farm, he is to be entered upon the schedule as
owning the farm he cultivates." In this case the hired
farm would seem not to appear in the valuation of hired
and occupied farms ; while in the case previoush'
described the farms owned and cultivated but not occu-
pied would, as said, go to sv/ell the total value of the
owned and occupied farms. The result would be to
diminish the total value of the hired and occupied farms
relatively to the owned and occupied. It would seem
that if the hired^ cultivated, but not occupied farms
230 American Economic Association.
were not included in the sum of the values, the owjied,
cultivated, but not occupied farms should also have been
excluded. Several of the instructions are so framed
that while they avoid duplication of persons and families
they either increase or diminish according to circum-
stances the value and incumbrance.
CRITICISM OF RESULTS PRESENTED.
Scope of the inquiry : — The purpose of the inquirj'
in the last resort, could be only to throw more light on
the economic condition of our people. It is unfortunate,
therefore, that its scope was not somewhat wider.
Especially in the portion relating to value and incum-
brance, the statistics are defective for any characteriza-
tion of the welfare of the people of the country. No
values are given for the homes of tenants nor for unin-
cumbered homes occupied by owners ; and on the other
hand the incumbrance that is taken account of is that
on farms and homes which are occupied by their own-
ers. No account is taken of the incumbrance on hired
farms and homes. The decision thus to limit tlie scope
of the work makes the results obtained an imperfect
guide for determining welfare. The report furnishes no
means whereby we may know " whether hired farms are
less or more valuable than those tliat are owned, nor
whether farms and homes occupied by owners free of
incumbrance are less or more valuable than those that
are occupied by owners subject to incumbrance." To
be sure, the report on mortgage indebtedness largely
covers the omission, but this fact is perhaps to be re-
garded rather as a reason for the collation of the reports
in one volume than as a reason for the omission of the
information in the volume under review. The absence
Farm and Home Proprietorship. 231
of the information mentioned very largely impairs the
interest of that portion of the report which deals with
value and incumbrance. The other topics are presented
with sufficient completeness. Aluch praise is due the
editors for the judgment displayed in the selection of
modes of grouping their information to bring out vari-
ous conclusions. Especially valuable for their socio-
logical teachings are the comparative tables of pro-
prietorship in cit)- and country, and between cities of
different population, the record of the purposes of incum-
brance, and the discussion of the character of the pro-
prietors.
Ownership and Industrial Classification. — The group-
ing of the returns showing proprietorship of homes in
cities according to their population might well have
been supplemented with a short table giving the figures
for cities of similar size but different industrial and
social character in various parts of the country. For
example, a comparison of proprietorship in a city like
Lawrence, Mass., with that of sucli places as Peoria,
111., and Lincoln, Xeb., should throw some light on the
comparative progress of the industrial and social classes
which predominate in these different places. It would
furnish some answer to the question what classes in the
community constitute most largely the home owners.
It is not infrequently said in some places that the wage
earners are to a large extent the owners of their homes.
While this is true in certain localities it is probably very
far from the truth in most. In the absence of statistics
for the separate industrial classes such a comparison as
is suggested would help to answer the question. Ac-
cording to a statement in the report it was at first
planned to gather the data for the separate classes, but
the expense was prohibitive.
232 American Economic Association.
Ownership and Density of Population. — The discuss-
ion of the relation between farm tenancy and density of
population is in some respects obscure because of the
varying size of the farms/ This is a defect in Table 16.
A comparison might fairly be made between places in
which the owners cultivate farms of about the same
size. No fair comparison of density of population in
different places can be made unless the areas are approx-
imately equal. A comparison, for example, of the ratios
between tenancy or proprietorship and density of popu-
lation in states like Arizona and Illinois can hardly be
of much value. For, in the first place, as already re-
marked, the areas are not equal ; and, in the second
place, tlie whole extent of one state is available for
occupancj' while of the otlier only a portion is habitable.
In presenting the returns groupings are made to illus-
trate some points which are hardly important enough to
be elaborated. One of these has already been men-
tioned, namely, the record of land sales in Massachu-
setts. The remark applies with more or less force to
the treatment of farm and home purchase as financial
operations.^
Ownership and Loan Associations. — A discussion is
given of the relation of proprietorship to the prevalence
of building and loan associations.^ Its purpose is to
throw light upon the question whether the ownership of
homes has been especially dependent on the establish-
ment of these associations or whether homes would
have been acquired had there been no associations of
this sort. In order to determine this point we need
figures showing whether, in places where building and
loan associations are prevalent and borrowers numerous,
' Idetn, 41, f.
^Idem, 42, 47.
^ Idem, 47-51.
Farm and Home Proprietorship . 233
the percentage of home-owning families is high ; and
also whether, in places of similar social character but
without building and loan associations, the percentage
of home-owning families is small. The tables give us
only the percentage of home families occupying hired
homes, the number of borrowers, and the percentage of
borrowers of families. They cannot, therefore, be of
much help in settling the question, for, in the first
place, there are too many other sources whence intend-
ing home builders can now secure loans, and these
sources are altogether unknown both as to character
and amount ; and, in the second place, building and
loan associations are as likely to be a result as a cause of
demand for hou.ses, and they would be established in a
community'' where they were not already in existence,
only when other sources of loans were absent or strictly
conditioned.
Tenancy and Sales. — In passing it may be noticed
incidentally that tables like the one given, showing
the average population to each deed of real estate
in Massachusetts from 1880 to 1889,' really show us
nothing as to the high or low degree of tenancy. It
is argued that " if real estate changes ownership in-
frequently, the inference may be either that the real
estate is so cheap as to be undesirable or else so
valuable as to be beyond the reach of the masses of
the people with respect to ownership. On the other
hand, if the transfers are frequent the inference may
be that the ownership of real estate is easily obtain-
able."^ But investments in real estate depend on
other causes than the desire of people to own their own
homes. They depend, for example, on the rates of re-
^ Idetn, 53, Table 21.
'' Idein, 52.
234 American Eco7iornic Associatio7i.
turn from other investments ; on the general condition
of business ; and, possibly, on peculiar local conditions,
which may or may not make real estate ownership
profitable. For these reasons it is doubtful whether
the table deserves even the small space assigned to it.
Interest. — Still further, it is very doubtful whether
the facts presented under the head of interest charge
are very reliable. " Tlie rates were reported mostl)- by
the debtors, except that reports were obtained mostly
from county officers in Alabama, Arkansas, Florida,
Georgia, Kentucky, Louisiana, Mississippi, North Caro-
lina, Oklahoma, South Carolina, Tennessee, Texas, and
Virginia," — that is, in one-fourth of the states of the
country.' The question called for the actual rate of
interest or " what the use of the money has cost regard-
less of what the contract may specify." In the opinion
of the editors, if there is any error in the report of the
interest rate it is a failure to make it as high as it
really is. Their ground for this belief is that " mort-
gage contracts are often somewhat complicated in
respect to the rate of interest, and all debtors have not
education enough to enable them to compute the real
rate of interest borne by the contract as distinguished
from the standard rate under the law of the state."^
Where the interest was not given, the editors applied
the average for the neighborhood ; where the principal
of the debt was obviously too large, they deducted an
amount equal to what the interest would have been on
the basis of the rate prevalent in the neighborhood. It
is probably a fact that debtors in attempting to give
" what the money has cost " regardless of the stipulated
rate of interest, would assign a figure too high, for men
^ Idem, 103.
■"Ibid.
Farm and Hovie Proprietorship . 235
tend to exaggerate such burdens. In many transac-
tions, moreover, there would be no payment of the
nature of interest, yet interest would be virtuall}- paid.
In some parts of the south, for example, farmers give
mortgages on their farms, sometimes on their crops, to
merchants in order to secure advances. They really
pay their interest in higher prices, and reliable infor-
mation shows that these prices range all the waj- from
thirty to one hundred per cent higher than they would
be if the customers were not in debt to the merchants.
This statement applies to real estate mortgages as well
as to certain other forms of incumbrance. Of course
these draw-backs or defects are not a reason wh)' an
effort should not be made to determine the actual rate
of interest regardless of the contract rate, but they show
that the effort must be performed with great caution
and that however carefully it is done it is likely to be
considerably wide of the truth. The various modes of
presenting the facts about interest charges seem to cover
the ground very thoroughly.
Description of Proprietors. — Not the least interesting
part of this whole report is the detailed description of
proprietors.' The main divisions of the presentation are
by color, place of birth, age aud sex. The value of this
portion of the work would be very much enhanced by-
such a summary as has already been suggested, for the
multiplicity of different details is really bewildering.
The record of incumbrance is seriously affected by the
failure to secure adequate information on crop liens.
We are told that " the enumerators vi'ere instructed to
regard crop liens as incumbrances on farms, but they
overlooked the instruction, with hardly an exception, in
the districts where crop liens were in force." " It is to
' Idem, 163-242.
'^ Idem, 14.
236 American Ecotiomic Assodaiion.
be hoped that this defect will be remedied in another in-
vestigation. In this connection it should be noted that
all data of indebtedness other than debts of record are
likely to be of doubtful value unless very carefully in-
vestigated.
Reports of values by public officials and by owners
had to be relied upon very frequently. It might be
possible in many cases to check such replies by getting
a record of recent sales in the neighborhood. This
would add but little to the labor of the enumerators.
In conclusion it is scarcely necessary to say that the
logical soundness of methods adopted for the calculation
of averages, wherever that has been necessary to supply
the places of unknown quantities, is unimpeachable and
the mathematical accuracy of the operations is admir-
able. Careful search has failed to discover any error of
importance.
IV. REAL ESTATE MORTGAGES.
Value of Investigation. — Seldom has any piece of
statistical work been put forth of so high an order of
merit as this volume. It is superior in the skill of its
plan and execution to the work of the volume on farm
and home proprietorship. The difficulties surrounding
the acquisition of tlie data were more numerous and
serious than in the case of the other volume ; and the
statistical skill shown in their manipulation is, if any-
thing, greater. Several of the general criticisms which
have been made are applicable to this report as well as
to the other. There is not much room for criticism
either of the statistical method employed or of the details
of their application. Some points, however, must be
noticed.
Farm ajid Home Proprietorship . 237
Scope and Plan. — This volume gives a more complete
return of the landed indebtedness than does the report
on proprietorship because it includes incumbrance not
onlj' on farms and homes occupied by their owners, but
also on those occupied b}' tenants. The introduction
describes the plan of investigation. A brief account is
given of the several methods of inquiry into this subject,
which have been made at various times and in various
places, in order to set forth the merit of the plan finally
adopted. That plan was to investigate real estate
mortgages for the whole country, to find the mortgage
movement diiring the preceding ten years by counties,
the average life of mortgages, etc. The time available
for the prosecution of the inquiry was so short that inves-
tigation by special agents was impossible, even if the
expense of that method had not put it out of the question.
The public records, therefore, had to be chosen as the
main source of information. Obviously, however, these
could not be relied on. In order to secure a check upon
them, one hundred and two counties in various parts of
the country were selected, and in these the amount of
indebtedness was determined both from the public records
and by personal inquiry. The proportion of error shown
by the accurately determined returns, in the public rec-
ords of these one hundred and two counties was used as a
basis for correcting the errors of the record for the whole
country. The success of the inquiry is very gratifying
not only because of the interest attaching to the work,
but because it has at last demonstrated, in the words of
the editors, " that a statistical office in the United States
.... can determine the amount of the existing ' re-
corded indebtedness of private corporations and individ-
uals ' by direct methods, as certainly for crop liens,
238 American Ecojiomic Associatioji.
chattel mortgages, judgments, etc., as for real estate
mortgages."
To a clear understanding of tlie work of the volume it
is necessary to explain briefly the process of establishing
the amount of existing debt. If the same number of
mortgages were made every year, the debt incurred
within a period equal to the average life of the mortgages
would be the actual debt at any given date. But the
conditions are not uniform. Different numbers of
mortgages are made every year. In order to get a
mathematically representative mortgage we must have
an equation of the time with the debt incurred. For
instance, " a mortgage for $500 enduring for five years,
and one for $1000 enduring for two years, are equivalent
to one mortgage of $1500 enduring for three years,
when an equation of time and debt is established." '
When we have determined the life of mortgage debt for
a section we are able to say that one mortgage equal to
the sum of all the mortgages actually made during each
year, was made at a certain time of the year to endure
for the period of average life of mortgages. At any given
time, therefore, the existing mortgage debt, if no partial
payments are made, is the sum of the debts incurred dur-
ing the average life period, exclusive of those left unpaid
from preceding life periods. The amount to be allowed
on the average for partial payments was ascertained in
the one hundred and two counties before mentioned.
" The process then .... consists simply in deducting
from the original amoimt of the mortgages made during
a period equal to the average life of mortgages in each
county the amount of the partial payments made on all
existing mortgages.^
1 Eleventh Census. Real Estate Mortgages, 15.
'^ Idem, 16.
Farm and Home Proprietorship . 239
Results Presented. — Before proceeding to discuss the
application of this method and its errors, we must review
briefly the field covered. The first presentation of re-
turns is the mortgage movement for ten years, showing
the variations in the number and amount of real estate
mortgages in various connections. Separate classifica-
tion is made of state and railroad contracts, and mort-
gages are classified by their amounts. The data are used
to get certain averages which are applied to the various
states and territories by years to shov/ the normal vari-
ation.' The next topic presented is the amount of mort-
gage indebtedness in force on January t, 1890, and the
increase in mortgage debt from time to time.^ This is
followed by a comparison of the mortgage indebtedness
with the total value of real estate." Various relations
are ascertained between mortgages and population,* and
the subject of interest is then taken up at great length ^
A detailed account of the special investigation in the
one hundred and two counties, the data for which were
accurately ascertained, is given," and followed by a
short account of mortgages in foreign countries.'' Four
pages are then devoted to a summary of the results,' a
feature which greatly increases the value of the volume.
Criticism of Application of Mathematical Theory. —
Let us return now to a consideration of the plan adopted
for the establishment of the amount of the existing
mortgage debt. Although the process as explained is
mathematically correct, there are certain conditions
^Ideni, 25-84.
''■ Idein, 87-111.
^ Ide-m, 115-152
''Idem, 157-16,
^ Idem, 167-265
"Idem. 269-295
' Idem, 299-305
'^ Idem, 309-313
240 American Econo?nic Association.
which interfere with its accuracy when it is applied.
The life of mortgages as shown by the records does not
tally with their true life, allowance has to be made for
partial payments, and there is great variation in differ-
ent places, both in the number and amount of mort-
gages made from year to year. " Where the number
and amount of mortgages made each year are small and
highly variable," a large percentage of error may ap-
pear in computing the amount of tlie existing debt'
There is no way of obviating this, but for areas larger
than a state the error cannot be very great. In order to
determine the allowance to be made for partial pay-
ments, reliance was made upon the returns received
from the one hundred and two selected cotmties. The
investigators ascertained the debt actually on the
records in these counties, and then compnted the debt
for the same date by the mathematical method before
described. They then found the difference, and the
" percentage of error of excess or deficiency of computed
debt " which this difference represented." The theory
was that there would be practically as many errors in
the over-estimation of values as in the under-estimation,
and that these over-valuations and under-valuations
would practically off-set one another, so that the average
error between the computed and recorded values of
mortgages in these one hundred and two counties could
be applied to the various states and to the whole coun-
try. The theory of course is sound, but the practical
value of the method depends, in the last resort, on the
number of cases from which the average error is de-
duced. It is not enough to have a series of instances in
which the errors of excess or deficiency in the computed
1 Idem, 16.
^ Idem, 17, ff. Table i.
Farm and Home Proprietorship . 241
debt off -set one another ; regard must be had also to the
amount of variation between the different percentages
of error. The larger the off-setting percentages are,
even although they exactly off-set one another, the less
reliable is the resulting average for application to un-
known cases. A close determination of the mean error
would theoretically require a very large number of
cases and it is of course impracticable to secure this.
Still, a number larger than one hundred and two is de-
sirable. A number of counties not less than five for
each state, should be chosen so distributed that they
will represent the variations in the industrial conditions
of the state.
Moreover, the more variable the total incumbrances
(that is, the larger the differences between them) whose
percentages of error off-set one another, the less reliable
is the resulting average. For a small incumbrance in
one or two of the sample counties may be representative
of the majority and yet be over-balanced by another of
the sample counties with a high total value and a high
percentage of error, or vice versa. In other words,
if we use only two counties in the state, the error in a
county with a large value and debt practically deter-
mines the error for the state, even if the error of counties
with small value and debt would be more representative
of the majority of its counties. Indiana, for example,
shows an error of only — 2.69 per cent on lots, and yet
the different counties show errors varying from — 39-59
to + 18.03. I'-^ every case where the selected counties
yield such a result, the test should be extended to two
or three other counties in the state.
Still further, the counties chosen should not be too
near one another. Those selected for Alabama are open
16
242 Atnericaii Economic Association.
to criticism in this respect as well as on the point just
discussed for Indiana. The two counties selected in
that state are Green and Jefferson. They are separated
only by one county, Tuscaloosa. The average value of
the farm acre in Jefferson is given as $10.81 and in Green
as $5.55- There are only two counties in the state with
an acre value of |io or more, while there are thirty-
seven with an acre value of less than $5.55. Unless
care is exercised to meet the conditions described, the
average error is very likely to be unreliable not only for
separate counties but for a whole state.
Various Points. — The results obtained are admirably
presented. Perhaps the most interesting portions are
" A Decade of Mortgages ", showing the mortgage
movement from 1880; the "Interest on Mortgage
Debt " ; and the results of the " Special Investigations
in One Hundred and Two Counties." The presentation
of mortgages in relation to real estate value and area is
open to the same criticism that was made on the parallel
presentation in the volume on farms and homes. The
topical arrangement of this division is bad because the
headings are not properly subordinated, and the lessons
to be derived from the data are not of very great value.
The principal reason for this is to be found, of course,
in the fact that but little reliance can be placed upon the
reputed values of acres and of lots. This fact is recog-
nized, so far as lots are concerned, and no attempt is
made to establish their value. The effort to do so for
acres is aided, in this case, by the fact that there were
available some data showing the average price of an acre
sold for a series of years in Ohio, and for sundry years
in Illinois, Minnesota and Wisconsin. The effort to
present a proportion between mortgage indebtedness
Farm and Home Proprietorship . 243
and selling price is based on a more solid foundation,
for records of recent sales are not very difficult to get.
A word may be said about the admirable series of
averages presented for amounts of mortgages, the life of
mortgages, rates of interest, etc. It is not uncommonly
said that an average is of little value because it is so
likely to be merely typical. This is by no means to be
taken as a matter of course, as Mr. Holmes has shown
in another place.^ The averages here mentioned, espe-
cially for interest rates, are really valuable and repre-
sentative.
Of as little reliability as the figures showing the rela-
tions between acre values and mortgages are also, to a
large extent, those dealing with population and mort-
gages. The table, showing the number of persons to a
mortgage,^ is of little use. The point of interest is to
determine the burden of mortgages. That depends on
the number of mortgages, the number of mortgagees,
the value of the property, and the amount of the mort-
gage. The proportion of population to number of
mortgages tells us little, if anything, about this btirden.
If the rate of increase of the population is greater than
that of mortgages the change in the burden of indebted-
ness is not shown by the percentages given. The table
would have been more valuable if it had shown the
percentage of growth of mortgage indebtedness per
capita as compared with the percentage of growth of
population for a series of years.
There is really little else in the volume to criticise.
It would be an improvement if the summary of results
had been extended. A four page resume of so large a
volume is too condensed to be of much value.
'Am. Stat. Ass'n. Publications 2 : 421 (1891).
' Real Estate Mortgages, 158.
244 American Eco7i07nic Association.
Future investigations should secure information about
crop liens. These in the south take the place of real
estate mortgages, and the real burden of the debt among
the farming class in that section of the country is not
shown in the report because of the omission of data con-
cerning them. Indeed, to those who are not acquainted
with the peculiar habits of the southern farmers the re-
port in this particular is misleading, for it shows no con-
siderable burden of indebtedness in the southern states.
It is true that this subject was well considered by the
editors of the volume and they decided that tlie cost of
including these liens would have been too great and the
result too unreliable. These reasons are of more force
in the case of such things as chattel mortgages and court
judgments than of crop liens, and it is to be hoped that
the way will be made clear to include the latter. They
really are real estate mortgages.
V. CONCLUSIONS.
In conclusion, I would reiterate my belief that the in-
quiry can be successfully carried out and .ought to be
repeated. The difficulty of doing it once in a decade
emphasizes the desirabilty of a permanent census bureau.
A single investigation is of little value. The value of
the investigation, whatever it is, depends upon the con-
tinuance or repetition of such inquiries in order that
comparisons may be made from time to time, and the
trend of the phenomena be more clearly set forth.
The regular census enumerators might safely be en-
trusted with the collection of facts regarding proprietor-
ship and tenancy so far as necessary to determine :
a. Whether the farm cultivated or the home occupied
is owned or rented ;
b. Description of the "family."
Farm, and Home Proprietorship. 245
Finally, as has been said already, the facts of the two
volumes might well be presented in smaller compass.
This could easily be done if the superfluous presenta-
tions in the way of unnecessary groupings to elucidate
special points were reduced, the graphic presentations
lessened in number, and certain unnecessary tables
which have been mentioned omitted. The facts con-
cerning ownership and tenancy should, however, be
presented separately from those on debt., even if included
in the same volume.
The success of the special agents in the southern
states in doing work supplementary to the enumerators
emphasizes the value of such special agents for the
entire country. I do not believe that the expense would
be an insuperable obstacle. Agents could be selected
who are residents of the various states and more or less
familiar with the conditions in their neighboring
counties. They should be, so far as possible, legally
trained. It is especially desirable to have such agents if
it is intended to secure complete returns on the value of
farms and the amount of debt, rates of interest and ob-
jects of debt. The fact of incumbrance can be easily
secured by the ordinary enumerators.
David Kinlky.
University of Illinois.
TRANSPORTATION.
The Statistics of Transportation.
For most, if not all branches of transportation, both
annual and decennial statistical reports should be pro-
vided. There is no subject concerning which the public
has greater need to keep informed. When the transporta-
tion service is not performed directly by the state, it is
conducted by corporations which are chartered by the
government and which in the intererest of the public
welfare, must be regulated by public authority. The
government is also appropriating large sums of money
to facilitate transportation, particularly that b}' water,
and this constitutes an added reason why the transporta-
tion statistics should be made complete and should be
collected regularly and frequently.
At the present time we do not annually collect statis-
tics of our inland or coast-wise commerce or of our ex-
press and telegraph business. Yet the public regula-
tion of railways and the intelligent appropriation of
money for river and harbor improvements require such
a knowledge of all these branches of transportation,
with the exception of the telegraph, as can be had only
by means of an annual collection of statistics.
The annual and decennial presentations should differ
both in scope and character. The decennial compila-
tion should be more detailed than the annual, and
should make those comparisons needed to present the
progress and evolution that is taking place in the vari-
ous transportation agencies and services.
The transportation statistics of the eleventh census
covered the coast-wise and inland water commerce of
The Statistics of Transportation. 247
the United States and the business done by our railroad,
street railway and express companies. It was compara-
tively easy for the census officials to secure the statistics
of steam railroad transportation because nearly all of
the data desired from the railroad companies for the
census are annually submitted to the Interstate Com-
merce Commission. In the case of coastwise and inland
commerce, however, the only data published annually
by the government are the tonnage statistics contained
in the report of the United States Commissioner of Navi-
gation. Carriers by water are not required to report their
business annu.ally, and to a large extent they carry on
their business without the extensive organization which
prevails in railway transportation. To obtain the census
statistics of transportation by water, especially the statis-
tics of inland navigation, was consequently more diffi-
cult than to obtain those of transportation by rail. The
fact that there were no annual statistics of inland and
coast-wise water transportation made the necessity for
census statistics all the more urgent, and the census
volume on Transportation by Water gives evidence of
conscientious effort, put forth under good guidance, to
secure the desirable data. It was impossible to secure
complete statistics and doubtless there are many errors
in those given. Indeed it will not be possible to secure
full and reliable statistics of inland navigation until
Congress compels carriers by water to keep a record of
their business and make regular reports to the govern-
ment.
The business of the express companies is well pre-
sented in the eleventh census. Unfortunately the sta-
tistics do not include quite all the express business done
in this country, because one foreign corporation refused
to furnish the information requested of it. This is
248 Atnerican Economic Associa,tion.
something whose recurrence can easily be prevented by
legislation. If the express companies were obliged, as
they should be, to make annual reports to the Interstate
Commerce Commission, not only would the annual sta-
tistical volume published by that body give a more
complete presentation of our transportation business by
rail, but the decennial presentation of the express
business could also be made much more valuable.
At the present time the Interstate Commerce Com-
mission collects annual statistics of railroad transporta-
tion, and the Bureau of Statistics in the Treasury
Department collects full statistics concerning our for-
eign commerce. The United States Commissioner of
Navigation, also connected with the Treasury Depart-
ment, in his annual report gives the statistics of the
tonnage of vessels engaged in the foreign and domestic
commerce of the United States. It is recommended that
the Interstate Commerce Commission be instructed by
Congress to collect annual statistics of all carriers by
water, of the business of express companies and of tele-
graph companies. The statistics of our coast-wise com-
merce could be collected and published most advanta-
geously by the Bureau of Statistics of the Treasury De-
partment if the statute outlining the powers of the
Bureau were so amended as include this function among
its duties. The Interstate Commerce Commission and
the Bureau of Statistics in the Treasury Department
now have statistical machinery which can readily
assume the added work of collecting the statistics here
recommended.
Besides these annual statistics, both the Commission
and the Bureau of Statistics referred to should publish
decennially statistical volumes covering the work that
has been done in the past by the census. These decen-
The Statistics of Transportation. 249
nial statistical presentations are of great value to the
government and to students of industrial and social
affairs, and when collected and published, as here sug-
gested, they would be more accurate and more scientific
in character than those given in such an enumeration
as the census has presented. The additional cost in-
volved in the decennial compilation by the existing
bureaus would also be much less than that which would
be incurred by the census authorities in performing the
same work. There is every reason, then, both from the
standpoint of a scientific statistical presentation and from
that of economy, to favor the enlargement of the statis-
tical work of these two bureaus.
As regards the statistics which the national govern-
ment should collect in the future concerning street rail-
way transportation, the time has probably not yet arrived
for an annual compilation. The business of street rail-
ways is still mainly local and fairly distinct from the
traffic done on steam railroads. The business of the
two agents, however, is beginning to be less sharply
separated and there is every indication that the electric
railways are soon to enter very largely into the traffic
operations now carried on by the steam railroads.
There are already many inter-urban electric lines and
some of them are interstate roads. For the present,
however, it would seem best that the several states
should collect annual statistics of street railways. Some
states now do so, but the majority do not. If the states
during the coming decade should not provide for the
annual statistics, the United States should then under-
take the work. Doubtless by that time, also, the inter-
urban and interstate character of the street railway busi-
ness will have developed to such a degree as to render
250 American Economic Association.
necessary an annual collection of statistics by the federal
government.
Concerning the desirability of a national decennial
presentation of street railway statistics, there can be no
question. Those who have occasion to use such statis-
tics fully appreciate the value of the volume on the
statistics of street railways that was included in the
eleventh census. A similar collection shoiild be made
in 1900, by the statistical department of the Inter-
state Commerce Commission. This and the other
recommendations made in this report will, of course, add
largely to the work of that department of the Interstate
Commerce Commission, and larger appropriations to
that department may be necessary. The Interstate
Commerce Commission, however, can do the work more
cheaply and more accurately than could any improvised
statistical force.
The census statistics of transportation by steam rail-
roads in 1890 were taken under very favorable circum-
stances, and it will be best to devote the remaining and
greater portion of this report to a criticism of the rail-
way statistics. The criticism will refer to the eleventh
census and will contain certain suggestions touching
the scope and character of the material that the future
decennial compilations should contain.
In discussing the problem of the scope and method of
railway statistics in the transportation volumes of the
United States census, two questions present them.selves.
The first and more important is, what railway statistics
can and should be presented to the public ; and, secondly,
what part of these statistics should be presented decen-
nially and what in the annual statistical report of the
Interstate Commerce Commission ? It will be best to
consider the second question first.
The Statistics of Transportation . 251
Both investigations, the eleventh census and the
annual report of the Interstate Commerce Commission,
seek to give a clear idea of the mileage and equipment,
the capital, earnings and expenses, the personnel^ num-
ber of accidents, etc., upon American railways, and both
cover the ground in much the same manner.
It would be well in the future to co-ordinate more
closely the annual and decennial reports. This does not
mean, however, that what is printed in one must neces-
sarily be excluded from the other. A large part of the
data furnished by the Commission's annual statistical
report might be given in an abridged form in the de-
cennial volume. The chief purpose of the latter, how-
ever, should be to present the changes that have occurred
during the preceding ten \-ears. The annual volume
should concern itself more with the changing features of
the railway situation, while the decennial publication
should go with greater detail into those features which
are less mutable and more permanent in character.
The following are a few of the investigations with
which a decennial volume to be prepared in 1900 might
concern itself. A study might be made of the more
technical side of the railways. The volume miglit fur-
nish us with detailed statistics of gauge, curves, and
gradients upon the different lines, the proportion of steel
rails, the weight of the rails, the composition of the ties,
the number, cost and general character of stations, a
more detailed account of the locomotives and other roll-
ing stock, and a number of other facts which are in-
trinsically interesting and which throw considerable
light upon questions concerned with the cost of opera-
tion. Statistics of this sort are apparently better adapted
to the decennial than to the annual publication, as they
do not change so rapidly as does, for instance, the in-
252 American Econotnic Association.
come or expense account, and a decennial comparison
would suffice to give a general idea of the railway de-
velopment along these lines.
Another feature of this decennial report should be a
presentation of the statistics of commodity ton-mileage.
The eleventh census contained a general, but rather un-
satisfactory, statement of the chief classes of commodities
carried. Fourteen groups of commodities were singled
out ; but these accounted for little less than three-fifths
of the total tonnage of the roads considered, and only
tons and not ton-mileage figures were given. While the
railways might possibly consider that a yearly statement
of the ton-mileage of each commodity would involve an
unreasonable amount of work, until less expensive
methods of railway auditing are introduced, such a
grievance could not be based upon a requirement to
make a decennial report. These statistics would not be
without value. The}^ would show the localization of
industries in various parts of the country as well as the
trend of traffic from one kind of commodity to another,
data which would have an important bearing upon the
question of reasonableness of rates.
With reference to the general method of presentation
of railway statistics, some changes seem desirable.
While certain fundamental facts should be presented
about all railways, it might be advisable to give in
greater detail the results for a limited number of large
roads instead of devoting considerable space to details of
insignificant, although independent, railways. It is
more important to have special information concerning
a railway with ten thousand employees than to be fur-
nished with general statements concerning lines em-
ploying one hundred men. It would be invidious and
probably inadvisable to demand information from one
The Statistics of Tra7isportation. 253
line that was not required of another, but the plan
might be adopted of printing detailed information for
the hundred largest railways, while filing the material
presented by smaller railways.
The freight traffic statistics, both in the annual and
decennial reports, might be divided not only into local
and through business, but into intra-state and inter-state
traffic. These statistics would be comparatively easy to
furnish from the way-bills, and would be valuable in
connection with questions of taxation, state control, etc.
The reports might also furnish statistics of car-miles.
We now have train-mile and passenger — and ton-
mile statistics, but the connecting link, car-miles, is
missing. These statistics are easily obtainable and
would be of importance in connection with questions of
utilization of rolling stock, number of persons or of tons
per car in various kinds of traffic, length of trains, etc.
There are numerous practical questions of railway
economy, upon which light would be thrown by the
publication of car-mile statistics. Statistics of car-
capacity might also be valuable in connection with
questions of car load rates.
The wage statistics of railway employees might also
be profitably incorporated into the decennial volume,
and the present labor statistics contained in the Com-
mission's Statistical Report might be somewhat remod-
elled and altered. Not only the average wages should
be given, but also the number of employees in each of a
number of wage classes should be presented, and it is
equally advisable that the classification should be made
more detailed and the groups more definite. The census
reports of the future might also contain statistics of the
hours of labor for the various groups of employees, simi-
lar to the statistics obtainable for Prussia or Saxony.
254 American Economic Association.
The question of capitalization and increase of capital
of railways should be carefully considered in preparing
the decennial report. There is probably nothing in the
whole field of railway statistics, with the possible excep-
tion of those of " injuries in accidents ", so inconclu-
sive as the statistics of capitalization. The capital
account of American railways presented by the official
statistics means neither the amount spent on the con-
struction of the railways, nor the total amount con-
tributed by all parties, including the National, state
and local governments, nor the cost of purchase of the
railways, nor their present value, nor anything of real
significance. To say that the capital account of Ameri-
can railways is some eleven thousand millions of dollars
is to make a statement that has little economic value.
A capital account of a million dollars may mean an in-
vestment of two millions or of five hundred thousand
dollars, and the capital account may be doubled or
halved without there being any increase or diminution
of the real investment.
The lack of meaning in the statistics of capitalization
could be overlooked, if it did not lead to their being
given a false interpretation. The publication of capital-
ization statistics, which, whatever their relation to actual
investment, are far in excess of the value of the railways,
leads foreign and home critics to false conclusions and
serves as a basis for many specious arguments and in-
correct judgments. So general are the erroneous im-
pressions derived from these statistics, that we might
almost be tempted to consider it preferable to suppress
the whole body of statistics of capital, on the ground of
insufficiency of data.
If the present statistics of capitalization are retained,
and we think on the whole that they should be, some
The Statistics of Transportation. 255
attempt should be made by the Commission in both
annual and decennial reports to rectify the false impress-
ion which such statistics give. Such a correction might
possibly be obtained by a table showing in parallel col-
umns the market value of such of the stocks as are
quoted, and the par value of the same securities. It
would also be well to follow the example of the English
reports in showing from 3-ear to year the increase in the
capital account that is real and the increase that is nom-
inal, in other words, that which is due to conversions,
consolidations, etc. Such facts would give the public
some conception of the actual amount of capital invested
dtiring the last year or decade, and some conception also
of the actual present value of railway property.
In general the recommendations of this report are,
that the Interstate Commerce Commission should be
empowered and instructed to collect annually statistics
not only of steam railway traffic but also of the business
of inland water transportation, and of express and tele-
graph companies. The Bureau of Statistics in the
Treasury Department, besides publishing statistics of
foreign commerce, should also be instructed to publish
annually statistics of otir coast-wise traffic. In the future,
both of these agencies should publish decennial statistical
reports which should take the place of the presentation
contained in the eleventh census. The decennial col-
lection of the statistics of street railways should be
made by the Interstate Commerce Commission. The
decennial volumes should contain those details concern-
ing which annual reports are not necessary but which
properly belong in a decennial and coinparative presen-
tation. The relation which the annual and decennial
reports of steam railway transportation should bear to
256 American Economic Association.
each other are indicated in this report. It seems hardly
necessary to discuss here each branch of transportation
in a similar manner.
Emory R. Johnson,
Walter E. Weyl.
University of Pennsylvania.
MANTTFACTURES.
Manufactures in th.e Federal Census.
The statistics of manufactures are among the weakest
in the whole range of census reports, although more
carefully compiled than most. They are subject to more
limitations, and are susceptible of more misleading in-
terpretations than any other group. As a statistical
photograph of facts, they are inadequate and defective,
though perhaps not more so than other branches of
census work.
This is the more to be regretted because of the in-
timate relation which the manufacturing statistics bear,
or are supposed to bear, to modern sociological study.
In the series of problems which increasingly occupy
public attention, — those which have to do with the rela-
tions of labor and capital and the contention of individu-
alism vs. collectivism, — these statistics are incessantly
drawn upon to enforce the argument of one side or the
other. Such is their construction that either side can
prove from them, or thinks it can prove, practically any
proposition it chooses to advance.
Thus our manufacturing statistics are reservoirs of
popular error. Without a full understanding of their
limitations, it is impossible to avoid falling into miscon-
ception. Notwithstanding the frequent sign-posts and
danger-signals scattered through the text, economists,
public writers, legislators, and propagandists of every
sort persist in reading them awry ; and we may assume
that most of them are honest in so doing.
It is necessary to add that some compilers of manu-
facturing statistics set the fashion by reading into them,
17
258 American Economic Association.
through derivative tables and percentages, certain rela-
tionships which the methods of compilation do not
warrant. Any subsidiary calculation which contains an
element of error — not an error in original data or com-
putation, but an error in principle — is one that ought
never to be made in an official census.
Some of the limitations upon the value of manufact-
ing statistics can be remedied, in a degree at least, and
some of them at present appear to be hopeless.
Two things may encourage us in spite of this outlook.
One is the fact that, defective as they are, our manu-
facturing statistics are the best produced in any country ;
the other is the fact that since i860 they have steadily
improved from decade to decade.
The difficulties surrounding a complete census of
manufactures are so appalling that they have thus far
deterred any of the great manufacturing nations of
Europe from attempting the work on any comprehensive
scale like our own. These difficulties have never in the
least degree phased or made to falter the ambitious
statisticians of our own country ; and manufacting
statistics have so multiplied of late years, through
the compilations of our increasing niimber of state
bureaus of labor statistics, that it appears timely
to study their methods and limitations, to point out
some of their defects, and to measure their intrinsic
value as guides to definite conclusions in practical affairs,
in legislation and in social movement.
I. The Earlier Censuses of Manufactures.
The industrial census of the nation was first under-
taken in iSio, on the recommendation of Secretary
Gallatin in his Report on Manufactures. Congress had
no conception of the difiiculties of the task it ordained.
Mayiufachires in the Federal Census. 259
This first iadustrial census was taken without even the
formality of a schedule, or definite instructions to the
marshals, and necessarily it forms no true measure of the
industrial resources of the country at that time. What-
ever utility the figures possess was imparted by Tench
Coxe, who was appointed by the Secretary of the Treas-
ury to digest the returns and make out of them such
showing as he could.
Of the $198,613,471 reported as the value of products,
more than 60 per cent was estimated by Mr. Coxe.
While the statistical value of such an estimate is doubt-
ful, it does nevertheless afford a definite starting-point,
undoubtedly conservative, from which our subsequent
growth can be approximately measured, precisely as the
growth of English wealth and resources is measured from
Domesday Book.
The industrial census of 1820, although conducted on
a schedule which contained the principal questions of
present inquiry, was even more unsatisfactory than that
of 1810, partly, according to Mr. Bishop,' "on account
of the inadequate compensation allowed the enumerators,
and partly from the inability or reluctance of manufac-
turers to give details of their business." The digest of
the returns prepared in the office of the Secretary of
State was so imperfect an exhibit that the Secretary
was only constrained to permit its publication by the
imperative nature of the resolution of Congress calling
for it. A subsequent resolution providing for its distri-
bution was tabled. On this account the document has
corae to possess some value to bibliophiles as a rare bit
of Americana, but it has none to the statistician.
The value of manufactured articles returned was
'J. Leander Bishop, "A History of American Manufactures," 3 :
263. (1868.)
26o American Economic Association.
$32,271,984, just about one-sixth of the product reported
ten years earlier. The decrease, Mr. Bishop explains,
was in part due to " the omission of all manufactures
strictly domestic or household." Another explanation
was the failure to secure the services of a man like
Tench Coxe, capable of reading into the figures some of
the data which the enumerators left out.
This experience led to the abandonment of any attempt
to take an industrial census in 1830.
The census of 1840 was little better than its prede-
cessors. " We are astonished as well as embarrassed,"
says Mr. Bishop, " by the meagerness of its details.
Even of the leading branches in some instances only
the capital is given ; in others only the product ; and we
confess we do not know by what rule of arithmetic or
mensuration any one could have calculated from ofScial
data that the capital invested in manufactures at that
time was $267,726,579." The report itself does not
attempt to aggregate the value of the products returned ;
in a number of the leading industries, such as flour and
grist mills, cast iron, liquors, powder, etc., only the
quantities are returned ; when we come to cast up the
account for ourselves, making our own estimates, we
find the aggregate so relatively small that we suspect it
affords the explanation of the absence of any attempt at
an official total.
General Walker declares that the results of the manu-
facturing census of 1840 are " worthy of little consider-
ation ;" and he adds that it is " from the census of 1850
that official information on this subject may be said to
begin." ' Mr. Bishop also declares that the seventh
census, which was taken under the direction of J. D. B.
DeBow, was the first in which " the government at-
tempted to ascertain with an approach to accuracy the
^ Encyclopaedia Britannica, article " United States," 824,5.
Manufactures in the Federal Census. 261
exact development of the productive industry of the
country, not counting any establishmetits that did not
produce $500 per year." "The astounding fact was
revealed," adds Bishop, " that the capital invested in
manufactures exceeded $550,000,000, and the annual
product had reached $1,019,106,616."
The census of i860, which reported products of the
value of $1,885,861,676, adds " a moderate estimate for
omissions and for non-return of minor and inconsiderable
establishments," which brings the total up to $2,000,-
000,000, or an increase of $980,894,000 in ten years.
The census of 1870 was taken under the law of 1850,
and Superintendent Walker was not long in discovering
that the original returns were so defective as to be in
the nature of a burlesque upon accuracy. The result
was a re-enumeration of five of the chief cities and of
many smaller ones, which added $250,000,000 to the
gross product originally reported. He then balanced
accounts between the eighth and ninth censuses, adding
or subtracting the industries covered in one and not the
other, in the following manner •}
Total production of the United States, 1870, as reported__f4,232,325,442
Add on account of cotton-ginning, etc. \ ^,
(omitted) I »b5,753,323
Mining, pure, " 82,016,061
Quarrying, " 11,860,622
Fisheries, " 11,096,522
170,726,528
14,403,051,970
Deduct on account of butchering I13, 686,061
Value of cloth printed 36,838,007
Increase in reported production of car-
penters, coopers, etc 177,569,242
Increase due to re-enumeration 250,000,000
478,093,310
13,924,958,660
Total production of the United States, i860, as pub-
lished : 1,885,861,676
Increase in 10 years, 108.12 per cent $2,039,096,984
1 Ninth Census, Wealth and Industry, 378,f.
262 American Economc Association.
I reproduce this table for the purpose of illustrating
how enormous is the variation, from census to census,
in the basis or sub-structure of the manufacturing sta-
tistics, and now dangerous it is to attempt any such
tables of comparative increase, or percentage of increase,
as that which appears in the volume on Manufactures
for 1890.' The fact is that there have never yet been
two censuses of manufactures taken which are properly
comparable by the percentage method, either as a whole
or in anj' of their elements.
General Walker, further commenting upon the manu-
facturing statistics of the census of 1870,^ said :
"If the reported gross product, ^1,885,861,676, at
i860, had been correct (as it manifestly was not), about
3,925 millions of dollars would have been the true ex-
pression for the gross product of 1870. On the other
hand were the reported gross product of 1870,
$4,232,325,442, correct (and it is manifestly below the
facts of the case), about 2,030 millions of dollars would
have been a just statement of the product of i860. If,
again, the product of 1870 were to be increased (as it
clearly ought) by a sum exceeding $600,000,000 on ac-
count of the omissions and deficiencies which have been
previously noted, the product of i860 would stand at
about 2,325 millions of dollars, while the product of
1870 reached $4,839,090,670."
These curious computations and readjustments show
how little intrinsic value, for scientific statistical pur-
poses, has been assigned to the totals of the census of
manufactures, by those who are familiar with them from
the inside.
The greatest step in advance was at the census of
1 Eleventh Census, Manufacturing Industries, i • 4.
^ Xinth Censvis, Ibid.
Manufactures in the Federal Census. 263
1880, when the modern method of enumeration and
supervision was first employed, and General Walker ap-
plied the system of special agents, first in the collection
of data, and then in their presentation by industries
under the supervision of experts. The reports of this
census are consequently the first, in the substantial
accuracy of which we can have much confidence. Both
these improvements were continued and perfected under
the census of 1890. It is difficult to understand the
grounds upon which Congress now proposes to deprive
the census director of the advisory services of experts,
in the preparation, compilation and interpretation of the
statistics of the great industries. It is certain that this
work cannot be satisfactorily performed by the average
census clerk, having no knowledge of the technical sig-
nificance and the logical relation of the figures with
which he is dealing. It is certain that the Census Office
cannot command, for the salary of clerks, capable ex-
perts willing to siirrender permanent vocations for tem-
porary service. That there have been abuses of the
special agency system is known to us all ; but it would
seem to be an easy matter so to guard a provision of law
authorizing them as to protect both the service and the
director.
The chief improvements of the census of 1890 over
that of 1880 were the addition of the item of miscellane-
ous expenses, previously strangely overlooked, the classi-
fication of wage returns, and the further differentiation
of the great manufacturing industries by the use of
special schedules. There is, however, a limit to the ex-
tent to which this specialization of industries can be
carried, for the danger of overloading is always present.
The eleventh census was also a vast improvement over
all its predecessors, in the system and intelligence with
264 AmeHcan Economic Association.
which the schedules were classified, revised, tabulated
and verified.
This brief reference to previous censuses of manufact-
ures convej's some idea of the difiiculties in the way of
their collection and compilation, and of the reasons why
comparisons between their several results must be made
with many reservations, where it is permissible to make
them at all. Inadequate provision and insufficient com-
pensation for the collection of original data have been
accompanied by other difficulties more serious — the re-
luctance of men to reveal the details of their private
business into which they feel the government has no
right to pry, the natural disposition to suppress or color
the facts, and the fear on the part of many that data of
this character are sought for some purpose that has to
do with taxation. On top of all this is the difficulty of
so framing a schedule that the manufacturer, however
intelligent and well disposed, will make a return which
will dovetail with itself. In gathering the statistics of
the wool manufacture for the eleventh census, four out
of every five schedules received had to be returned for
important corrections ; nor was this experience pecular
to that industry. The carelessness of the enumerator,
coupled with the carelessness or covert hostility of the
manufacturer, — who is apt to regard these statistics with
contempt where he does not look upon them with
dread, — combine to make the returns less trustworthy,
and more difficult to whip into shape, than those of any
other branch of the census. These are difficulties that
interfere with the collection of the data ; those that in-
here in their compilation are more serious still.
Manufactures in the Federal Census. 265
II. The Defective Standard of Measurement.
In an inquiry into the nature of these difficulties, we
are confronted on the threshold with the impossibility
of applying- any uniform standard of measurement to
the results of the enumeration. In treating of industry
as a whole, the census is confined to value as the only
available standard of measurement, quantities being out
of the case. When we undertake to ascertain an average
death rate, we have something definite and tangible to
work for ; something which means the same thing under
all conditions, and the variations of which always tell
their story in the same way. The standard of measure-
ment by value is variable and untrustworthy in two
ways. We have first the variation in the standard by
which value itself is measured. Thus the census of
i860 was taken on the gold basis of value; the census
of 1870 was taken when the paper dollar had an average
value in gold of 79.81 cents; the census of 1880 was
taken on the heels of the resumption of specie payments
by the government ; and the census of 1890 on a normal
monetary basis. The standard by which we measure
the volume of our manufacturing products has been
essentially different at each of the last four censuses.
The census of 1890 has attempted to make the figures
comparable, by reducing the value reported for 1870 to a
gold basis, ^ thus reducing a product worth $4,232,325,442
to $3,385,860,354, notwithstanding General Walker's
statement (already quoted) that to be a true photograph
of the facts the value returned in 1870 should be in-
creased by a sum exceeding $600,000,000, measured in
the currency of the day. It is doubtful if the basis of
comparison has been improved materially by this arbi-
' Eleventh Census, Manufacturing Industries, i : 2 and 4.
266 American Economic Association.
trary treatment of the figures ; for it assumes that the
inflated vahie of the dollar, in 1870, has only to be
eliminated in order to make comparable statistics,
whereas the fact is that another element of variation
remains which forbids exact comparison — the variation
in the quantity of product represented by a dollar, due
to change in prices. This variation is so great as to
make exact comparison impossible, even if the standard
itself were fixed and uniform.
In his discussion of the manufacturing statistics of
1870 General Walker stated' that "after much thought
and extensive inquiry on the subject, and the api^lication
of numerous tests, he was disposed to regard 56 per cent
as a just statement of the increase in price for all classes
of mechanical and manufacturing productions between
i860 and 1870; that is, that manufactured articles of
the same quality (averaging all branches of production)
which would have been worth $1,000,000,000 in i860
would have been worth $1,560,000,000 in 1870. This
would leave the increase of manufacturing production
in the ten years to be represented by 52 per cent."
In other words, in the census of 1870, which showed
an increase of 108 per cent over i860, 52 per cent,
according to General Walker's calculations, represented
the increase in manufacturing production, or " the actual
industrial growth," and 56 per cent represented the in-
crease due to increased prices, caused partly by an
inflated currency.
Thus we have General Walker, in order to get a
reasonable basis of comparison for quantities with the
census of i860, suggesting the reduction of the value
of the product of 1870 by 56 per cent of the value
of the product of i860 and Colonel Wright reduc-
' Ninth Census, Industry and Wealth, 379.
Manufactures in the Federal Census. 267
ing it by 20. 19 per cent (the average premium on gold for
the census year) for purposes of comparison with sub-
sequent censuses. These two very different treatments
of the same results, for the purpose of rectifying varia-
tions in the unit of measurement due to different causes,
indicate how impossible it is for the la}' reader of cen-
sus figures to make a satisfactory use of them for com-
parative purposes.
Since 1870 the tendency of prices has been steadily
■downward, but no subsequent census has taken cogni-
zance of this reversal of the conditions which General
Walker attempted to measure in the census of the
former year. The striking phenomenon of manufactur-
ing has been the constantly increasing quantity of goods
represented by a dollar, due to the cheapening of pro-
duction brought ■ about by improved machinery and
processes, cheaper transportation, and the lower prices
•of materials.
Professor Falkner's report on prices, for the Aldrich
Investigation of 1891, shows that, between i860 and
1890, there was a greater decrease in the prices of man-
ufactured articles than iir any other group of necessities
considered, the average fall in the price of clothing be-
ing nearly 25 per cent,' while in a great variety of staple
manufactured articles it was very much more, as, for
instance, print cloths, with a decrease of 42 per cent ;
nails, 41 percent; handsaws, 62.5 per cent; scythes,
40 per cent ; pocket knives, 47 per cent ; and so on. It
might be possible to establish a statistical barometer of
values, for certain lines of staple manufactures, on the
plan of Sauerbeck's index numbers, whereby it would
'Senate Report on Wholesale Prices, (1893), i : 83. See also the
table of averages on page 91, where it is shown that the fall in the
prices of groups of manufactured articles has been uniformly greater
than in the food products of agriculture.
268 American Economic Association.
be possible to measure this difference with sufficient ac-
curacy for practical purposes. No such collateral work
could be attempted, except in connection with a per-
manent census office. Continuity of method in this re-
spect as in a great many other directions, is im-
possible, where the whole organization of the census
office is periodically broken up.
In the separate industries the difficulties growing out
of the lack of a uniform standard of measurement are
overcome, to a degree, by the existence of other
standards, such as the unit of machinery capacity, as
the spindle in cotton, the card in woolens, the loom in
silks, etc. But even here the trouble is not overcome ;
for the spindle, the card, and the loom have been very
different things, at each census, in the volume of pro-
duction they stand for.
Nor are we much better off when, in the separate in-
dustries, we undertake to measure growth by actual
quantities of given products. The difficulties of supple-
menting the money value of product by quantities, in
special industries, are enormous, because of the constant
variations which occur in the characteristics of these
products. A yard of cloth is always a yard of cloth ;
but by no means is it always the same yard of cloth, or
a yard that can safely be assumed to be the same,
even for statistical purposes.
It is clear that an absolute unit of measurement, in
manufacturing statistics, is impossible ; and that the ac-
cepted unit, the dollar, represents at each census a dif-
ferent thing, both as to capital, product, and wages.
There have been no two censuses at which the dollar
represented the same quantity of goods, or, in the mat-
ter of wages, the same purchasing power. This fact
emphasizes the warning of General Walker, that " the
Manufactures in the Federal Census. 269
conditions of the census material (in manufacturing
statistics) do not allow of nice treatment, and it would
be affectation to attempt fine distinction or precise com-
putations in dealing with the subject." ' That warning
we are in constant danger of forgetting in our modern
treatment of these statistics.
III. Factory Product and Trades Product.
A second difficulty is not less troublesome. What is
manufacturing, and what are properly included in these
statistics as manufacturing establishments ? The same
rule has applied in no two censuses ; and the text of all
of them is largely occupied in pointing out the things
included in one and omitted in another. For instance,
the censuses of 1850 and i860 professed to contain a re-
turn of the " Product of Manufacturing, Mining, and the
Mechanic Arts ; " and they included the gold dug from
the California mines. The census of 1870 included the
value of stone, slate, and marble quarried, and also the
value of the fisheries, excluded from subsequent cen-
suses. The census of 1840 even included "houses"
among the products of manufacturing industry ; and it
is by no means certain that they do not belong there.
Mr. Steuart, chief of the division of Manufactures in
the census of 1890, states that "certain industries, such
as dressmaking, bottling, millinery, cars, and general
shop construction, and repairs by steam railroads, manu-
facture of gas, etc., had apparently been included in the
total of 1870, but in 1880 they had either been omitted,
or the reports classified with other industries in such a
manner that it was impossible to identify them."^
They were all again included in 1890, with numerous
' Ninth Census, Idem, 375.
2 American Journal of Sociology, 3 : 623 (1898).
270 America7i Economic Association.
other industries not previously enumerated in any
census.
This constant variation in the rule of inclusion again
illustrates the impossibility of satisfactory results, in
the absence of a permanent census office controlled by
some tradition which insures uniformity of method. It
illustrates quite as forcibly the inherent difficulty of
satisfactorily determining what is properly to be in-
cluded in manufacture and properly returnable as such,
under the indefinite language of the census law.
Since the founding of the government, the conditions
of manufacture have been undergoing profound modi-
fication. It- has passed rapidly from a household indus-
try into a factory industry, and this latter has divided
up into innumerable special industries. The first
industrial census was almost wholly an account of
household industries, or of semi-household industries, —
such as the local carding and fulling mill which simply
prepared the wool or finished the cloth spun and woven
by the neighborhood families. Our word " manufac-
ture," in scornful disregard of etymological nicety, has
come to signify, in its popular iise, something precisely
the reverse of that which it chiefl)' signified when the
first industrial census was taken. As we have pro-
gressed towards the factory, one after another of the old
hand industries was eliminated from the manufacturing
statistics, now because it had disappeared altogether,
and now because it was carried on by single individuals.
The arbitrary rule of requiring a product to be valued
at $500 or more, to be included in the counts, was
adopted in 1840. It is practically the only rule of dis-
crimination to whicli the Census Office has strictly
adhered. A more absurd rule could not have been
devised.
Ma7iufactures in the Federal Census. 271
The truth is that the manufacturing statistics, as now
made up, are neither one thing nor another, neither
flesh, fowl, nor good red herring. The time has come
to draw a sliarp line between the hand trades, properly
so called, like brick-laying, house-painting, etc., and
those productive industries whose products seek the
general markets, and are subject to the general laws of
trade.
It is impossible fully to cover the hand trades in an
industrial census ; the existence of the $500 rule is a
confession of that fact. Moreover many handicraftsmen
carry on business without any shop or paraphernalia
which can be identified or enumerated as a manufactur-
ing establishment. It would seem to be plain that
industrialism pursued under such conditions ought not
to be confused, for census purposes, with factory manu-
facture, and that the two classes of data cannot be
mingled and combined, in the consolidation of manu-
facturing statistics, without affecting the exactness of
the results.
There were returns from 355,415 establishments in
the census of 1890. More than one- third of this number
were establishments engaged in the occupations foUow-
Bakeries 10,484
Bicycle repairing 83
Blackstnithing 28,000
Boots and shoes (custom and repairing) 20,803
Carpentering 16,917
Clothing (custom and repairing) 13,591
Dentistrj' 3)2I4
Dressmaking 19,587
Masonry 5.969
Millinerj' shops i 6,000
Painting and paper hanging 10,043
Plastering and stucco work 1.746
Total 136,437
Eleventh Census, Manufacturing Industries, I ; 36-45.
272 American Economic Association.
These establishments cover a form of industrialism
which is not manufacturing, in the modern significance
of the word. They are collected at an enormous
expense, and their verification and tabulation enor-
mously increase the cost and labor of the division of
manufactures in the Census Office.
The conditions surrounding handicraft industry are
so essentially different from those of the factory that the
consolidation into one mass of the data relating to both
must materially detract from the scientific accuracy of
the results. Trades and manufactures are the same
thing in census statistics ; although political economy
long since differentiated them as distinct and essentially
different things.
The conditions of the so-called manufacturing estab-
lishments thus grouped indiscriminately together are so
obviously different that any attempt to generalize from
the data secured is dangerous and unsatisfactory.
Manufacturing must necessarily be treated as compris-
ing the industries carried on under the factory system,
which means something entirely different from house-
hold industry, from shopwork, from employment at a
trade, even when the trade workmen are employed at
wages by large contractors. These latter it is impossi-
ble ever to cover adequately in a manufacturing census
and therefore it is useless to attempt to cover them at
all.
On the other hand, by confining the census to what is
distinctly recognized as factory production, we should
have one complete and homogeneous thing, and could
better conform its statistical presentation to scientific
methods.
Some doubt exists as to just what factory manufacture
is. It would be necessary to make an arbitrary defini-
Manufactu7-es in the Federal Census. 273
tion ; but no definition could be more arbitrary than the
time-honored one which omits every industry whose
product is under $500, and includes every industry whose
product is $550. I suggest, as a rule which might be
followed, a modification of that commonly found in the
state labor laws, for the guidance of factory inspectors ;
i. e., any establishment in which five or more persons
are employed at wages, and in which power is used for
the production of articles for sale.
General Walker in an article in 1869,^ said that the
contribution to the wealth of the country by its artisans,
or hand-workers, is far more valuable than that made by
its factory workers ; and he added that the contribution
to the national wealth made b}' these hand trades ought
to be separately reported and carefully differentiated
from the report of factory industry. He suggested the
desirability of two distinct schedules — a suggestion
which he did not attempt to carry out in either of the
censuses whose taking he subsequently superintended.
Those who had the practical administration of this bu-
reau of the eleventh census inform me that his further
suggestion, made in the Ninth Census, and quoted
in the foot-note,^ for a statistical estimate of the products
''■ Atlantic Monthly, 24 : 691.
^ " Of the total amount paid for tlie collection of the Statistics of
Manufacture in ' Schedule 4,' more than a fifth was expended for re-
turns relating to carpentering, blacksniithing, coopering, painting,
plastering, and plumbing, not one of which industries, though far
better returned than ever before, was reported with sufficient com-
pleteness even to furnish the data for a computation of the true pro-
duction of the trade, so that, after this expenditure, one is still
obliged to resort to the Table of Occupations for the material from
which to estimate the production of this group of industries. The
money thus thrown away would have served, if placed under the con-
trol of the Department of the Interior for the salaries of experts and
for traveling expenses of special agents, to make the statistics of the
larger industries complete and correct in the highest attainable de-
18
274 American Economic Association.
of the trades, based upon the Tables of Occupations, is
impracticable, for the reason that the larger portion, ac-
cording to the returns, of those who describe themselves
as " carpenters," " blacksmiths," etc., are actually em-
ployed in factories and mills, where their work is of the
general nature described, while still others may not be
employed at all at their chief occupation when the cen-
sus is taken. It is unfortunately the fact that the sta-
tistics of manufactures, when studied in connection with
the tables of occupations, present anomalies and incon-
sistencies which it is not easy to reconcile with our own
conception of the facts. For instance, the manufactur-
ing statistics of 1890 report 140,021 persons employed
in carpenter shops, while the occupation tables show
611,482 carpenters in the country. In other words, only
23 per cent of the carpenters are returned as such in the
gree, creditable to the census as a national work, and invaluable to
the statesman, the political economist, and the practical man of busi-
ness. At the same time, a well-trained statistician can, in a few hours,
from the Tables of Occupations, reach a far more satisfactory result in
respect to the products of the minor trades than is to be obtained by
manipulating the partial returns of the trades themselves. In a word,
the returns of manufactures should be restricted to those industries
which are carried on in considerable establishments, and are suscepti-
ble to a thorough, complete, and detailed enumeration.
Second. The returns of manufactures, having been thus restricted,
should be far more specific, and should be made to conform to the
advance in the practical arts within the last twenty years, and to the
requirements of modern statistical science, The additional facts
thus to be elicited should not be industrial merely, but such also as
are of social and sanitary importance.
The manufacturing tables of the census ought to be so full of tech-
nical information as to become the handbook of manufacturers, while,
at the same time, they might be made so pregnant with truths im-
portant to the economist and the statesman as to become a handbook
of social and political philosophy. With no more authority of law
than might have been contained in five lines of the statutes, and with
not a dollar of expense above what has been incurred in making this
unsatisfactory exhibit of the national industries, such an enumeration
of the manufactures of the country might have been effected at the
ninth census."— Ninth Census, Wealth and Industry, 384,f.
Manufactures in the Federal Census. 275
manufacturing statistics, the remainder not being re-
turned at all, or being lost in the general statistics of
car-shops, furniture factories, and other wood-working:
establishments. It is difficult to believe that ^'] per cent
of the carpenters of the country are. employed in shops
other than carpenter shops. It is difficult to believe
that 74 per cent of the painters are employed in other
than paint shops ; and yet we are forced to this conclu-
sion by the statistics as they appear, and there is no
method by which the two groups of carpenters or paint-
ers can be segregrated and the statistics tested.
IV. Gross, " Net," and Actual Values.
A third difficulty encountered in manufacturing sta-
tistics has to do partly with methods and partly with
phraseology.
As our censuses have hitherto been taken, they in-
volve an enormous element of duplication and redupli-
cation in the products, a defect which has been regarded
as unavoidable, and which results, notwithstanding the
constant warnings of the text, in an almost universal
misconception of the real facts. The finished products
of one branch of industry being constantly the raw ma-
terials of another in the ascending scale of modern in-
dustry, it follows that they are counted over and over
again in swelling the final value of products. Thus in
the wool manufacture, the product of the yarn mill is
the raw material of the cloth mill, and the product of
the cloth mill is the raw material of the clothing manu-
facturer ; by the time the aggregate is made, the value
of the yarn has been counted three times and the cloth
twice. This is a fair sample of what goes on every-
where, from beginning to end of these industrial statis-
276 American Economic Association.
tics. A product the value of which has beeu stuffed
and restuffed iu this manner is a fictitious total ; and all
percentages reckoned thereon, in relation with any other
items returned, are necessarily a snare and a delusion.
A curious illustration of the effect of this duplication,
and of the difficulties it presents, is found in the case of
gray cloths sent to finishing-mills to be bleached, dyed,
or printed. Here the final processes are so slight, in
comparison with the value of the material operated up-
on, that the censuses of i860, 1880, and 1890 omitted
the latter from the report of the value of product. In
1870, however. General Walker included this value,
justifying himself by this reasoning : '
" Allowance must also be made for the different treat-
ment of one other industry, viz., cloth-printing, in the
present publication, from that adopted at the eighth cen-
sus. At i860 the value of the cloth printed would ap-
pear not to have been embraced, either in the value of
materials or in the value of product ; but in the for-
mer only the value of mill-supplies, coloring matter,
etc., and in the latter the value added to the goods by
printing. At the present census it has been thought
best to include the value of the cloth in the statement
both of materials and of product. By this means the
net value created by the industry is as closely obtained
as by the other method, while just so much additional
information is given. Indeed, there seems to be no rea-
son for making this one industry an exception to the en-
tire list of kindred industries in this particular. The
fact that the value of materials here becomes unusually
great, as compared with the value to be added by the
processes of printing, certainly constitutes no difference
in principle as between this industry and any other. If
' Idem, 378.
Mamifactures in the Federal Census. 277
the subject matter of the industrial process is to be in-
cluded in the account when it amounts to three-fourths
of the value of the iiltimate product, there seems to be
no good reason for excluding it because it reaches five-
sixths of that value."
The reasoning is absolutely sound ; but the result of
its application in this particular case is so absurd that
General Walker himself, in 1880, again excluded the
value of the goods operated upon from the gross value
of the prodixct of the finishing-mills, as was done in
1890. But the duplication in tliis instance differs only
in degree from that which prevails everywhere ; and the
case admiraVjly illustrates the crudeness of the whole
treatment of this problem of the manufacturing statistics.
The text of the Eleventh Census, recognizing the fact
that the total value of products reported, $9,372,437,283,
is a fictitious total, takes a step towards an approxima-
tion of the true total, by deducting from the above
figure the whole sum, $5,162,044,076, reported as the
sum expended for the raw materials employed in creat-
ing it, leaving a residuum of $4,210,393,207, which it
describes as the " net value of product.'" In this pro-
cedure, it follows the example set by General Walker in
the ninth census and again in the tenth. It is an
unscientific method of dealing with the difficulty, and
unsatisfactory both in phraseology and in result.
The net value of anything is that value which re-
mains after deducting whatever may properly be charged
against it. In this case the census has deducted a great
deal more than can properly be taken away, and instead
of securing a " net " product, it has obtained a sum
which is not the true value of our manufactured pro-
ducts, but simply the value added to crude materials by
' Eleventh Census, Manufacturing Industries, i : 28,f.
2y8 American Econo7nic Association.
the manufacturing process. The true " net value " of
products is not the gross value, nor is it the added value
obtained by deducting the cost of materials ; but it is
that added value, plus the sum originally paid for all
the raw materials used, in the crude form in which they
first appear in any factory/
I conceive it possible so to take a manufacturing
census that this difficulty of duplication will be elimin-
ated, and a basis thus obtained for accurate percentages.
It could be done by providing on the schedules two
columns for the entry of the value of raw materials
consumed : one column for all raw materials consumed
in the absolutely crude form ; the other for the raw
materials purchased and consumed, which have been
advanced by any process of manufacture sufficiently to
insure their return in some other branch of industry.
Raw wool or cotton would all be reported in column i ;
yarns, dyestuffs, gray cloths for converting, etc., in col-
umn 2. The net product of industry, in any branch of
manufacturing, would then be secured by subtracting
from the gross value of products the total value of the
materials reported in the second column. The result
^ This method of the census leads to some curioiis coiichxsions. For
instance, in Kansas the slaughtering and meat packing business con-
stitutes 40 per cent of the gross value of the products of the state,
(Idem, 416-421), and in this industry the cost of materials is very
large, in comparison with the labor cost. The phrase adopted by the
census reduces us to the abs\trdity of saying that the ' ' net ' ' value of
the product of the meat-slaughtering business is the bare cost of kill-
ing and packing the cattle, i. e., |8, 560,000, whereas the materials
upon which this sum was expended cost $38,031,824. In the manu-
facture of coffee, spices, etc. (/. e., their roasting, grinding, and
preparation for market), the cost of the materials as returned to the
eleventh census, was $65,961,465, and the value of the product was
$75,042,010, [Idem, 75), so that the " net value," as thus ascertained,
was only $9,080,545. In the lard industry the "net" value of the
product is reduced to $2,820,488, although the cost of materials was
$12,654,360, (Idem, 79).
Manufactures in the Federal Census. 279
would be the apparent value, at the factories, of the pro-
ducts of the factories. There would be no duplications ;
and yet the value of all crude materials consumed would
be represented in the resulting total, as it should be.
We should then know the value of the factory manu-
factured products of the country, so far as it can be
measured by means of a manufacturing schedule —
something that we have never yet even approximately
learned from the Federal census.'
V. Defective Analysis and Misleading
Percentages.
We may fairly criticise the use made by the Census
Office of statistics thus avowedly defective.
The text of the Eleventh Census contains an analysis
showing the average value of product per employee in
each of the industries, calculated both on the " gross "
product and the " net " product, so called. For the
former it is given as $2,204 ; for the latter as $999 per
capita ;" and both figures are wrong, and necessarily
wrong, for the reasons just stated. The tables referred
to^ shonld never have been compiled or printed ; for the
elements entering into the average thus obtained are so
variable, and the conditions governing industry in each
of its branches are so wholly different, that they not
only possess no statistical value, but invite misconcep-
tion and false deduction. The only thing that can be
' The limitation upon this plan is its failure to account anywhere
for the value of semi-manufactured raw materials, which may have
been imported. The quantity of such is not large enough to vitiate
the returns ; it would always be an error on the safe side ; and it
might be closely estimated from the import returns made by the
Treasury Bureau of Statistics.
' Idem, 37.
^ Idem, 34-45-
28o American Econotnic Association.
said in their favor is that as computations the)' are
mathematically correct.
Criticism equally harsh lies against other statistical
presentations or mathematical manipulations of the
manufacturing statistics of the eleventh census.
One table presents " average capital required and cost
for a product valued at $ioo, by states and territories," '
and another similar table shows the same thing by
specified industries.^ These tables indicate that in the
year 1890 the average cost of every |ioo of manufactured
product was $86.17. They are accompanied by a foot-
note explaining that the difference between cost and value
($13.83) does not show the true average profit or earn-
ings of capital, because the cost reported does not make
any allowance for " depreciation of plant or mercantile
risks." It is therefore not the cost. So long as it does
not show either the profit or the cost of manufacture, we
must wonder why the table was made, since if it does
not show one or both, or approximate!}' show them, it
shows nothing at all. In this particular instance, an
additional vitiating feature of the figures is the duplica-
tion to which we have referred, of which the Census
Office here has made no account, and which renders this
entire series of calculations an instance of the official
dissemination of false information.
All attempts to present, from census returns of manu-
factures, percentages of relationship between the
several items reported (and they frequently appear in
state censuses) are scientifically wrong, and a con-
spicuous illustration of the abuse to which official sta-
tistics are subjected. The percentages of " labor cost, "
the percentages of " labor's share in the manufactured
' Idem, 48.
^ Idem, 49-53.
Manufactures in the Federal Census. 281
product," the percentages of " capital's profit," etc.,
which are frequently worked out from these statistics
are not simply meaningless ; they are, in the nature of
things, deceptive and misleading.
In the first place, they are based upon averages, and
these averages are in turn based upon conditions so
absolutely dissimilar that their combination results in a
statistical picture like that of the kaleidoscope. The
colored glasses in the kaleidoscope ahva}s fall together
in some symmetrical pattern ; but it is always a pattern
which has no relationship to anything whatever. The
man who is working with silk as his raw material,
worth a dollar a pound, will be shown to secure in
wages a very small percentage of the total value of pro-
duct. Another man who works in shoddy worth ten
cents a pound will be shown to secure a ver)- large per-
centage of that value. The wages of the two, let us
say, are the same. What, then, does the percentage
show ? Why is it calculated ? What statistical or so-
ciological value has it ? Shake the two together and
strike an average percentage : the result is more worth-
less than before.
In the text of the ninth census General Walker pre-
sented an admirable demonstration of tlie futility of
these vicious percentages.' He grouped the manufac-
turing, mechanical, and mining industries of the coun-
try into five groups, arranged in accordance with the
manner in which the character of the subject-matter of
labor affects the relations of wages to product. These
five groups range from those in which the materials, so
called, are intrinisically of no value until operated upon
by labor, like the products of mining and other extrac-
tive industries, up to those in which, as in diamond-cut-
' Ninth Census, Wealth and Industry, 379,f.
282
Avterica?i Economic Associatioji.
ting, the value of the materials employed far exceeds the
value of all other elements in the cost of production and
thus carries the value of the product in these industries
to a verv high point, although comparatively little
has been added to the original value.
Commenting on his table, General Walker says :
" The first class of industries, with a reported gross pro-
duct of $143,000,000, is shown to yield a net product
only $5,000,000 less than that of the fifth class, which
has a gross product of $841,000,000, while the wages
paid in the first class exceed those paid in the fifth by
131 per cent. Nothing, perhaps, could set in a stronger
light the necessity of. considering all statements of
manufacturing production in connection with the value
of materials consumed and the cost of labor. Here are
two groups of industries, the one reaching the gigantic
total of $841,000,000, the other aggregating but one-
sixth as much ; yet the latter makes a clear addition to
the wealth of the country equal to 96 per cent of the net
production of the former, and actually pav-s more than
twice as much in wages."
For the five groups his table, a part of which is here
reproduced, shows the following curious and instructive
results :
REi^ATioN OF Wages and Materiainerican Economic Association.
tigatioiis concerning manufactures, is to continue to
gather data concerning wages, we may consider what
should be attempted. In doing this, we should remem-
ber that the principal purpose of the census investiga-
tions is to gather information concerning manufactures.
The questions relating to total wages and employees
should, therefore, be framed with this primary object in
view.
For this last reason, the census should continue to
investigate the total wages paid, as an important ele-
ment in the expenses of manufacturing industry. But
it ma}' be doubted whether the data thus gathered
should be used for the purpose of computing average
3'early earnings of laborers. In any event, the utterly
incomparable character of the statistics of the eleventh
and preceding censuses should be set forth so clearly as
to offer no possible excuse for the further misuse of their
figures.
If the computation of the average yearly earnings is
continued, the twelfth census should carry on the work,
commenced by the eleventh, of ascertaining the average
earnings of workers in each occupation, separating in all
cases men, women, and children. Such data could be
used for some purposes, since the averages thus com-
puted would be based upon units of some degree of
homogeneity. The results would be further improved
if they could be more fully classified by sections of the
country. Furthermore, a separate table might be pre-
pared, from which the notoriously incorrect materials
gathered by the ordinary enumerators outside of the
cities and towns could be excluded. This was accom-
plished in the eleventh census in the separate volume
devoted to the principal industrial centers. For all
these purposes it would matter less whether the divisor
Wage Statistics and the Federal Census. 367
should be the average number of employees or the total
number, provided that future censuses should adopt a
uniform method of procedure.
It has been suggested that wage statistics should in-
vestigate only the earnings of laborers steadily employed
in each establishment, because other workers are largely
migratory or incapable. '^ It is urged that we should en-
deavor to ascertain primarily the earnings of capable
laborers who are steadily employed during the months
that each establishment is in operation. The import-
ance of studying the numbers and condition of transient
employees is not denied, but it is considered best to
make this the object of an independent investigation.
This point seems to be well taken, provided that it is
feasible to separate the two classes of laborers. But it
may be impossible to introduce such a feature into the
investigation concerning manufactures, and an indepen-
dent inquiry might be needed in order to accomplish
such a result.
The writer has already expressed the belief that the
most valuable wage statistics contained in the eleventh
census are to be found in the tables of classified weekly
rates. The advantage of such a method is that it deals
largely with actual facts, and does not employ averages
that may be unreal and misleading. Such statistics,
when properly tabulated, enable the student to ascertain
exactly what rates of remuneration the great mass of
the laborers is receiving.
Besides tabulating such returns so as to show, for
each class of laborers, the numbers employed at each
rate, and the per cent which such numbers bear to the
total number of persons in each group, the results might
^ See Mayo-Smith, in Quarterly Journal of Economics, i:-yy],l.\
Von Meyr, in Allgemeines statistisches Archiv, 2 : 135.
368 American Economic Association.
be presented graphically according to the method sug-
gested by Dr. Venn/ This consists in drawing a base
line that shall represent the different rates of wages, and
then constructing ordinates denoting the relative num-
bers of laborers receiving such specified rate. This
plan would make it possible to plot a curve "that would
represent accurately the condition of the wage earners
at a given time. Between different periods, changes in
the shape of the curve would indicate the course of
weekly rates of wages.
Tables of weekly wages need to be supplemented by
statistics showing the number of weeks of full working
time the operatives are able to secure in the course of
the year. Such inquiries fall easily within the scope of
the census of manufactiires. With their use, the tables
of weekly rates would furnish most valuable informa-
tion concerning the course of wages in manufacturing
industries.
Charles J. Bullock.
Cornell University.
^Jo2irnal of Royal Statistical Society, 64 : 445.
WEALTH, DEBT AND TAXATION.
Valuation and Taxation.
The report of the census of 1890 on Wealth, Debt
and Taxation consists of two parts : Part I — Public
Debt ; Part II — Valuation and Taxation. This review
covers the second part.
General Introduction. — As the heading — Valuation
and Taxation — implies, there are two distinct pur-
poses served by this part of the census. One purpose
is to obtain a general inventory of the wealth of the
nation ; the other is to ascertain the sources and amounts
of the income of the commonwealth and local govern-
ments,' and to show the character of the charges upon
that income.
Prior to 1880, there was no distinct recognition in the
census investigations of the second purpose. Attempts
were made in 1850, in i860 and in 1870 to estimate the
amount of wealth in the country, and in that connection
the assessment of property for purposes of taxation was
ascertained. In 1880 an investigation into taxation
was added to that into the assessed valuation of property
and the second of the two purposes was for the first time
clearly recognized.
Although these two purposes are entirely distinct in
character, yet their original combination and the some-
what subordinate, contributory position which the inves-
tigation into taxation occupied at the beginning led to
complications to which certain serious faults in the
eleventh census (i8go) can be traced. This unfortu-
^ States and territories, including the District of Columbia, and all
political subdivisions or parts thereof, which raise or expend public
revenues.
24
370 Avierican Economic Association.
nate combination arose very naturally. A large propor-
tion of the revenues of the state and local governments
was, and still is, raised by the taxation of property, and
it is still the common assumption that all property is
taxable and is, or should be, assessed. This assumption,
which is not at all warranted by the facts, was made in
the seventh census and again in the eighth census.'
It was but slightly modified in the ninth census and
did not altogether disappear in the tenth or eleventh.
In the first two reports, both of which aimed to find the
amount of our national wealth, the assessed value of
property taxed was ascertained and to that certain
amounts were added to make the "true value." Prop-
erty exempt or which escaped taxation was not consid-
ered until the ninth census. At that time there was
added to the estimated " true value " of property taxed
a certain sum supposed to cover the value of property
exempt from taxation or which escaped by fraudulent
evasion. In 1880 and in 1890 the attempt was made to
make a complete inventory of national wealth, and in
this connection the assessed valuation of property taxed
was used as a guide in obtaining the value of certain
kinds of property. At the same time the investigation
concerning assessment and taxation was greatly devel-
oped in scope and accuracy. Kach of these two parts of
the investigation having thus had its development, it is
easy to see that they have really separated. Still the
traditions of the old combination cling to the investiga-
tion, affecting its terminology, its methods, the presenta-
tion of its results, and the comparisons drawn from it,
and give to it many features the presence of which can-
not be explained except as historical accidents. Thus,
1 Special report of the superintendent of the seventh census, Dec.
I, 1852. Eighth Census, Miscellaneous Statistics, 294.
Valuation and Taxation. 371
the terms, " assessed valuation " and " true valuation,"
formerly represented two ways of looking at the same
thing, namely, the property taxed. But, though the
term " true valuation " is still used, it applies in the
eleventh census to all kinds of property, taxed and un-
taxed. Yet in spite of that change the new " true
valuation" is freely compared with the old as if both
referred to the same thing. Thus we are told, for
example, that the total wealth of the country in 1890
was $65,000,000,000, or $1,036 per capita. This is then
compared with $7,000,000,000, or $308 per capita in 1850.
But the $7,000,000,000 represents the corrected value
of property taxed, while the $65,000,000,000, ostensi-
bly at least, includes all property, taxed and untaxed,
alike. The comparison is then elaborated and extended,
percentages of increase, etc., being offered.
Other comparisons, which were perfectly logical when
first instituted, have become illogical and inadmissible
through the changes which have been made, but are
yet continued. Of these the following will serve as an
example. In i860 we were told that the "assessed
valuation" of property taxed was $12,000,000,000 its "true
valuation" being $16,000,000,000, a perfectly proper
comparison. But in 1890, we were told that the "as-
sessed valuation " of the property taxed is $25,000,-
000,000, and that the " true valuation " of this property
together with a large amount of other kinds of property
was $65,000,000,000, and further that the " assessed
valuation" is 40 per cent of the "true valuation." The
most natural inference is that the assessors had de-
creased their assessments from 75 per cent to 40 per
cent in 30 years, an inference which is not at all near
the truth.
It is time that the two purposes of this part of the in-
372 American Economic Association.
vestigation should be recognized as entirely distinct. Old
and no longer admissible comparisons should be discon-
tinued and the foundation laid for new and permanent
comparisons, which maybe continued in the future with
ever increasing value. It may be said in defense of the
census of 1890, against the criticisms just offered that
the reader is warned against the error of such compari-
sons by the preliminary explanatory statements. This
is quite true, and the warning is good as far as it goes.
But in the presentation of the results of a public
statistical investigation two things must be borne in
mind, (i) Many unscientific persons will necessarily
take the tables verbatim; and will use them "uninter-
preted" and unmodified by any explanatory statements ;
and hence, no table or statement should be printed
which taken in that naive, simple way will lead to
serious error. To drop the old comparisons, altogether,
is, therefore, better than to continue them in such
a misleading form. (2) Scientific investigators, who
use the census, will need to " interpret " the figures
given, in order to make new combinations, and for them
the most ample and detailed explanations of methods
and significance are indispensable. Indeed one of the
most troublesome features of the volume on Valuation
and Taxation now under discussion is the inadequacy
and obscurity of the statements given regarding the
methods by which the figures were obtained and their
real meaning. Many instances in which the census of
1890 failed in this respect will be found in the follow-
ing attempt to analyze the figures given.
I. THE WEALTH OP THE NATION.
The purpose of this part of the investigation is quite
clearly indicated when we call it our national inventory.
Valuation and Taxation. 373
The information sought is the value of all the different
kinds of tangible wealth within our boundaries at the
close of the census period, 1890.' Of necessity the
larger part of this investigation must be made by what
the statistician would call an enquete, that is, a careful
expert estimate. Enumeration is possible only in a few
of the items.
At this point the question might be raised whether
such estimates of wealth in general are of any scientific
use. The trained statistician naturally looks with con-
siderable suspicion upon an aggregate composed of so
many complex elements, each measured by a different
plan and on a different scale. He will be extremely
wary of drawing any conclusions from it without a
careful study of the methods by which the figures were
obtained and considerable readjustment of the state-
ments. But the layman frequently accepts the census
estimate of wealth, and especially that conglomerate
total, as an accurate measure of national prosperity, and
draws conclusions of varying accuracy. This review is
not the place for an extended discussion of the " relations
between private property and public welfare."^ It is
sufficient to recall the fact, so often dwelt upon by
economists, that national well-being or prosperity de-
pends upon a great many other things than the accumu-
lated possessions of the people. It depends quite as
much upon many of the " free gifts of nature " as upon
those things to which we ascribe a value. It depends
'The phrase " at the close of the census period, 1890," appears to
mean May 31, 1890. No more definite statement of the date to which
the investigation refers is given in connection with the estimate of
wealth. There is some internal evidence that all parts of the estimate
were not scrupulously reduced to that date. Since, however, the
entire inventory is at best an approximate estimate, it would, perhaps,
be over-critical to insist on the reduction of all parts to the same date.
'■ A. T. Hadley, Economicp, SubLitle.
374 American Economic Association.
very much upon the abundance and consequent cheap-
ness of things, and upon the uses to which our accumu-
lated possessions are put. At times, national well-being
increases with the increase of circumstances which tend
to lower the value we put upon accumulated possessions.
An increase in the number of dollars' worth of goods on
hand, or in tlie number of dollars' worth of land, unac-
companied by a material increase in the amount of goods
or the area of land under cultivation is frequently a sign
of the increasing hardship of economic life. " Public
wealth," says Hadley, " is a flow, not a fund ; it is to be
measured as income, not as capital." It must, therefore,
be clear that the census estimate of wealth cannot give
us an accurate measure of national well-being.
Yet the inventory has its use, even if it does not
measure the " Wealth of the Nation " in the broadest
sense of that phrase. Tlie grand total may be a meaning-
less conglomerate, but the items in the list have each a
definite significance. Indeed, the national inventory has
about the same use which a merchant's annual inventory
has. Although the total amount of stock on hand has
no significance as to the profitableness of the business,
and although the merchant reckons his success by the
size of his profit, not by the size of his stock, yet he
wants to know the relative amount of each kind of
goods, the adequacy of the supply as related to the pos-
sible demand, the proportion of dead stock, etc., etc.
So the economist is interested to know the relative
amount of each of the different kinds of wealth. From
this point of view the investigation has its importance
and there can be no question of the wisdom of continu-
ing this part of the census.
If this view of the scientific purpose of the inventory
of wealth be correct, it has certain consequences which
Vahiation and Taxation. 375
are important in their bearing upon the method of the
investigation and upon the presentation of the results.
These consequences, briefly stated, are (i) that a correct
classification is very important ; (2) that each item must
be estimated in a way to show its relations to the others ;
(3) that the results must be so presented that the reader
can understand the real significance of each class of
wealth.
In taking up the census estimate of wealth the first
thing we are interested in, therefore, is the classification
used. This was determined in 1890, mainly by the
exigencies of collecting the data, which, in turn, were
determined by the desire to utilize the results of other
investigations throwing light on the subject. The in-
formation obtained from these other investigations was
not systematized and rearranged according to some logi-
cal classification or plan, but carried over bodily, as it
were, and the parts roughly patched together. The
other investigations made use of were :
1. The census investigation into manufactures, es-
pecially that part of it dealing with the capital invested,
the value of machinery in mills, and of the product on
hand.
2. The census investigation into transportation by
land and water, especially that part concerned with
the value of railroads and shipping.
3. The census report on mineral industries from
which the value of mines and quarries with product on
hand was taken.
4. Much valuable assistance might have been ob-
tained from the census investigation into farms, homes,
and mortgages, and apparently some was so obtained.
Indeed if the investigation into "Wealth" had been
combined with that one, many of the items which were
376 American Economic Association.
merely "estimated" could have been enumerated and
additional details obtained. But it will be remembered
that the investigation into farms, homes, and mortgages
was ordered after the regular work had been planned,
and when it was too late to take advantage of the oppor-
tunity thus afforded.
Other government reports and investigations were of
assistance, especially the report of the Director of the
Mint for 1890, which gave the value of gold and silver
coin and bullion.
The rest of the data seem to have been collected or
estimated, especially for this report. The general
classification is as follows.
1. Real estate, with improvements thereon 39i544.544,333
2. Live stock on farms, farm implements, and machin-
ery 2,703,015,040
3. Mines and quarries, including product on hand i,29i,29r,579
4. Gold and silver coin and bullion 1,158,774,948
5. Machinery of mills and product on hand, raw and
manufactured 3,058,593,441
6. Railroads and equipment including $389,357,289 for
street railroads 8,685,407,323
7. Telegraphs, telephones, shipping, canals, and equip-
ment 701,755,712
8. Miscellaneous 7,893,708,821
Total $65,037,091,197
Is this classification sufficient? Do these items in-
clude all the wealth of the country ? These questions
are rather difficult to answer. So entirely have the
exigencies of collection been allowed to rule the classi-
fication that it appears totally irregular and illogi-
cal. It is almost impossible to say whether all kinds of
wealth have been included or not, still less is it possible
to say exactly where certain kinds of property belong if
they are included. The critical reader is not particu-
larly reassured by the confident statement of the Census
Vahiation and Taxation. ^Tll
Office that " these items include substantially all the
wealth of the country." A few rather important in-
stances have been noted which seem to throw a doubt
on the accuracy of this statement. Thus, for example,
no special mention is made of electric light and power
plants, nor of gas plants in private hands or belonging
to corporations. An examination of the details shows
that probably some of the real estate of such corpora-
tions is included jUnder the head of real estate. This is
true of all those states where the corporations are taxed
on their property. The machinery of such companies
is probably included in the machinery of mills, but the
poles, lines, cables, pipes, etc., so far as I could ascertain,
are not included anywhere. There is no evidence
that more than a very small part of the property of
water companies, both those supplying water for house-
hold uses and for power and those supplying water for
irrigation, is included. Possibly because the investiga-
tion is confined to the tangible wealth of the country, the
franchises of such corporations are not included, although
it is hard to see how the real wealth or earning power of
these and other similar corporations, or even the value
of their property, can be properly estimated without
reference to the value of their franchises. Any state-
ment of wealth which omits such important elements as
the valuable rights, privileges and relations character-
istic of modern industrial organization cannot be said
to contain "substantially all the wealth of the coai-
try." Alerchandise held in stock by merchants and
producers was estimated by the tenth census at over
$6,000,000,000. This item in the eleventh census is
included under " miscellaneous " and given some small
value which is not stated. No explanation of the change
is offered.
378 American Econo^nic Association.
It appears from the report that public lands, public
buildings, and the personal property of governments
were included in the total wealth. But the exact
amount of these items is not clearly stated. If these
items are to be included, one might inquire why public
highways, roads, streets, bridges and the like were not
included. Are they not a part of our tangible wealth ?
They do not appear to have been included in the list.
In reference to sucli items as these it may be said that it
is difficult to tell where to draw the line. If we include
streets and roads, we should include canals ; if canals,
then harbors and rivers, upon which the government
spends so much money. If we include these items it
would seem reasonable to include a breakwater ; if a
breakwater, why not the shore which it shelters? It is
obvious that this leads to a serious difficulty. It is prob-
able that the only way out is to draw an arbitrary line, and
to include only such items of public wealth as have been
the objects of the expenditure of public funds, or been held
for sale. Of the former class the public works will serve
as an example, of the latter the public lands. These items,
have, of course, no market value and the sum at which they
are to be entered in the list will be more or less arbitrary.
Still it is not difficult to estimate in most cases what
they would be worth if they were private property, and
it would be eminently satisfactory for all purposes to
enter them in the list at such a valuation.
It would serve no useful purpose to allow the criticism
of the eleventh census in this particular to turn upon
the claims of any or all the above items to be recognized
by a place in the list of wealth. They are not cited for
that purpose, and there may be others that are not men-
tioned, which are of more importance and better entitled
to a place. All that it is necessary to point out is that
Valuatio7i and Taxation. 379
is is impossible from the results presented to tell whether
the above items or any part of them have been included
or not. Even if the census is not open to the charge of
having omitted them, it is certainly a fault not to have
explained where they are to be found, or if they have
been omitted the grounds for their exclusion. The
general classification is unsatisfactory even if it is not,
as indeed it appears to be, incomplete.
We pass next to the methods pursued in ascertaining
the amount of the different items. " The term real
■estate includes all lands and lots with improvements
thereon, but does not include mines, quarries, telegraphs,
telephones, or railroads, except that in a few states where
the roadbed, station houses, and repair shops of railroads
are classed as real estate for purposes of taxation and
their value not separately reported." ' To some extent
therefore the items are duplicated. It is a matter for
careful consideration whether this cannot be avoided or
the error reduced.
The value of the real estate was ascertained by inquiry
from the persons empowered to assess it for taxation,
■checked by " more than 25,000 inquiries sent throughout
the country to persons believed to be familiar with the
values of real estate, asking tlieir opinions as to the rela-
tion between the assessed and true value in their re-
spective localities."" This method does not seem to have
been applied uniformly to all parts of the country. The
25,000 inquiries were sent out upon some very peculiar
plan. If that were not the case, it is very remarkable
to say the least, that the true value ascertained in this
way should correspond exactly to the assessed value in
the case of real estate in Alaine and in the District of
'Eleventh Census, Wealth Debt and Taxation, 2:7.
■•' Ibid.
380 America7i Economic Association.
Columbia. If there are two parts of the country where
the assessed vahie is the same as tlie market value, it is
worth the whole cost of the census to have established
the fact. In Wisconsin and Pennsylvania local reports
were partly utilized.^ The results obtained in this way
were then submitted to tiie governors of the respective
states. This procedure, as might have been foreseen,
resulted in eliciting no new information.
The most commendable feature about the above
method is its economy. No other method could have
been used without a material increase in expense. It is
an attempt to do by correspondence what could be done
much more satisfactorily b)' the special agent. A much
greater degree of success might have been assured if it
had been applied in a somewhat different way. A great
deal depends upon the persons selected to whom the in-
quiries are sent. But even more depends upon the v.-ay
in which the questions are presented. The persons to
whom the inquiries are sent should be those who are
familiar with actual sales. The questions should call
for an actual list of the sale prices compared with the
assessed values of pieces of land that have actually
changed hands within some short period preceding the
census period. The question asked in the census of
1890, " What is your estimate of the ratio or percentage
which the assessed value of real estate in your town
bears to its true value, viz., to the amount which it
would bring at sale in open market?"," when unaccom-
'AUhough the true values ascertained by tlie Pennsylvania Tax
Conference were adopted in the main yet in the case of Philadelphia
the census figures vary from those of the Conference by more than
$125,000,000. No explanation of this is offered, and from the text the
reader is left to suppose that the figures of the Conference were simply
reprinted.
^Circular letter of January 20, 1890. Form 7-466.
Valuation and Taxation. 381
panied by a call for a statement of the facts in regard to
actual sales, is but a license for guess work.
The lists of actual sales obtained in this way should
then be checked by statements obtained from the courts
of the valuations made by appraisers appointed to deter-
mine the value of the estates of deceased persons. For
the same purpose it would be possible to use the mort-
gages executed within the last two ^-ears preceding the
census period. From these the value could be roughly
estimated by assuming that the property was mortgaged
for a certain proportion of its value. If in addition to
these sources of information a special agent could visit
the different localities, talking with owners, real estate
agents and other persons, it would be possible to arrive
very closely at the true value. None of these sources
of information seems to have been utilized.'
The sources of possible error to be guarded against
are: ist, mistakes in the judgments and statements of
the persons to whom the inquiries are sent ; 2nd, the
omission of lands from the assessment ; 3rd, differences
in the definition of real estate in the different state laws.
The first source is one which involves the whole theory of
statistical observation and cannot be enlarged upon here.
The second error is, I am convinced, a very large one.
In verj' few of the states are there any good and com-
' It has been found impossible at this late date to obtain a complete
set of the schedules, etc., used in compiling these statistics. Through
the kindness of Mr. King, census clerk in the Department of the In-
terior, as complete a set as possible was sent to me. The judgments
above expressed were iirst formed by a study of the returns in the
census, and were afterwards confirmed by an examination of blanks
numbered 7-466 and 7-467. It is, however, due the Census Office that
I should quote from Mr. King's letter : " Please bear in mind that it
is not complete, (/. e., the set of blanks) and can only be used as in-
dicating something of the scope and manner of the inquiry : any
specific subject which might be criticized from these papers might
have been exactly covered by some one of those that are missing. ' '
382 American Economic Association.
plete maps for the use of the assessors, and it is rare that
the assessinent is carefully checked by the use of maps.
The assumption that all real estate is assessed is far from
the truth.' My attention has frequently been called by
assessors to the fact that they have discovered and
assessed lands which had been overlooked by their pre-
decessors. In a single county in California lands, now
assessed at over $500,000, but which for 3'ears had es-
caped taxation, were recently discovered by the asse.ssor.
In addition to such items there is in many parts of the
couutr}', even in New England, and especially on the
Pacific Coast, a considerable amount of land, known in
the West as " Sobrante," that is irregularly shaped pieces
of land between grants, townships and sections, not cov-
ered by the descriptions in the surveys. The correction
of this error is far beyond the power of the Census-
Office. It will have to await the completion of more
adequate surveys.
The third source of error, namely the differences in
the definitions of real estate for assessment purposes, is
most complex and difficult to deal with. It can, how-
ever, be avoided by a careful comparison of the laws of
the different states and by reductions and readjustments
according to some uniform plan. The Census Office it-
self should draw up a simple and clear definition of real
estate and follow that uniformly, changing the local
definitions to conform thereto. The principal difficulty
here, namely, the classification of possessory claims as
personal property, will be discussed below in connection
with taxation.^
' Even the total area of the country is not definitely known. Com-
pare in this connection the very interesting discussion of the Area of
the United States by W. F. Willcox. Am. Econ. Assn. Studies
2 : 211-228.
^See pp. 4oo,ff.
Valuation and Taxation. 383
The conclusion is that the method used by the eleventh
census to obtain the value of real estate was defective in
several particulars. It depended too much upon opinion,
and many facts which would have aided in making the
estimate were not collected. If for reasons of economy
it is found impossible to employ special agents to ascer-
tain the value of real estate, a far more satisfactory result
could have been obtained by the method suggested
above.
" No attempt has been made to ascertain the value
of improvements separate from that of lands, or of city
or town lots separate from other lands measured by
acres, as the state reports do not generally make such
divisions, and original investigations as to land values
have not been instituted by this office.'"
The idea here expressed, that since it is not always
feasible to ascertain the assessed value of improvements
separately, it is not worth while to ascertain the true
value of improvements apart from the land, is an in-
heritance from the time when the two purposes of the
investigation above stated were combined. There are
many items in the above list, the separate assessed value
of which could not be learned, and these were neverthe-
less wisely segregated. Moreover, it would be possible
in most parts of the country to ascertain the value of
improvements separately. The investigation into farms
and homes could easily have been extended so as to
show the relative value of town lots as compared with
lands measured by the acre. In many states, building
contracts are a matter of record and with these it is
possible to ascertain the value of improvements especi-
ally in cities.^ It would be extremely useful to know
this item separately.
I Eleventh Census, Wealth, Debt, and Taxation, 2: 7.
^ For application of this method see Illinois Bureau of L,abor Sta-
384 American Economic Association.
"The value of mines and quarries, including product
on hand, is the capital invested in these enterprises, as
shown by the Report on Mineral Industries for the
Eleventh Census. It does not represent the amount of
capital stock issued, but is the actual investment in the
land, buildings, fixtures, tools, implements, live stock
machinery, etc., including in some cases a small amount
of cash on hand, which was not reported separately and
could not therefore be eliminated. The commercial
value of the mines varies from day to day, but it is
thought, as only mines are included which appear to be
yielding more or less product, that their average com-
mercial value would be at least the amount of capital
actually invested therein. The lands and buildings
belonsfino- to mines in some states are assessed as real
estate, and to that extent their value may be also in-
cluded in that of real estate, as herein reported, but at
most the amount is not relatively great. In case the
tax is levied on the product, as in several states, the
real estate and improvements are not assessed for
taxation, and consequently would not be embraced in
any real estate values herein published."^
There is much to be said in criticism of this method.
It is admittedly a guess and a bad one at that. The
value of a mine depends solely upon the present output
and the expectation in regard to the life of the mine,
so far as these facts are known. It has no necessary
connection with the amoimt of capital already expended
in roads, lands, buildings, machinery, shafts, tunnels,
etc. The expectation in regard to the richness and
tistics, Eightli Biennial Report, (1894). Also on a smaller scale,
Plehn, General Property Tax in California, Am. Econ. Assn., Studies
4 : 197, Appendix D.
' Eleventh Census, Wealth, Debt, and Taxation, 2: 8.
Valuation and Taxation. 385
size of the body of ore may prove to be mistaken, but
the " true value " is the commercial value to-day. For
the purpose of the census no other value is admissible.
Fluctuating as the commercial vahie may be, owing to
the uncertainties of mining, it is yet the best that
human agencies have been able to devise. It is the
value measured as accurately as men of experience and
training in such matters can measure it. The com-
mercial value of a mine varies from day to day. So
does the population of the country. But that fact does
not preclude the possibility of ascertaining what it is
to-day. This mistake is due to a forgetfulness of one of
the elementary principles of all statistical science :
" Every statistical investigation requires a limit of the
time and of the space in which it is to be made." A
mine or a quarry had a certain definite value June i,
1890, which could be ascertained. The fact that it
might have a different value July i has no bearing on
the problem before us.
The same criticism bears with equal force upon the
estimate of the value of railroads, which was set down
at the cost of construction. The value of a railroad,
June I, 1890, can be ascertained in most cases to a cent
by adding together the market value of the stocks,
bonds, and other securities by which various titles to
the road are transferred. The problem which the cen-
sus had to solve was not that troublesome one, with
which the courts are frequently vexed and over which
railroad commissioners worry, namely : what shall be
the capitalization upon which the government or the
courts may allow a railroad to earn interest ? It is not
what ought to be the valuation but what is the present
value ?
25
386 American Economic Association.
The suggestion that the " true value " might be ascer-
tained by capitalizing the net earnings at 5 per cent,
a method which is actually applied by the census to
telegraphs and telephones, canals, etc., is equally arbi-
trary. The value of any property is determined by a
number of complex considerations affecting different
items of property differently. Among the most promi-
nent of these considerations are (i) present earnings, (2)
security, (3) estimated future earnings, (4) general re-
pute. Property belonging to corporations is especially
affected by such considerations, but the present value, —
the result of all such causes, — is definite and easily
ascertained. If a given railroad had 10,000 shares sell-
ing June I, 1890, in the market at $95 each, and 2,000
bonds selling the same day at $1,050 each, with no other
outstanding securities, that road was worth $3,050,000.
That sum represented the careful judgment of men ex-
perienced in estimating such values ; a judgment made
with a knowledge of all the circumstances which on that
day could affect in any way the value of the property.
Even supposing that the value were temporarily de-
pressed by a false rumor, that sum and no other was the
actual value of the road. The census can recognize no
other. The method of capitalizing the net earnings at
a certain per cent, or of finding the cost of construction,
is applicable, if at all, only to property that seldom
changes hands, and where the market value is not deter-
mined. It is certainly not applicable to railroad prop-
erty and the like, except in very rare instances.
" Of the miscellaneous, the value of furniture and
personal belongings constitutes a large portion. To
arrive at the value of such property an examination was
made of more than 8,000 insurance policies on contents
of houses not located in large cities, and the result
Valuation and Taxation. 387
showed the average value of furniture insured in such
houses to be I387. The value of private carriages and
tools of mechanics is not known, but it is believed that
for each house in the United States there would be of
furniture, tools and carriages an average amount of
$400, making for the entire country a value of about
$5,000,000,000." ^
This method ought to be fairly adequate ; if combined
with, and checked by, that used b}' the tenth census,
it certainly would be sufficient. That method is
described as follows : " The number of families in each
state was taken, and these were distributed, according to
the statistics of occupation, into certain characteristic
classes. The average value of the household goods, in
the families of each class, was then estimated as thought-
fully as possible, item by item, the values given to the
goods representing what they were v/orth to the owner,
or what it would cost to replace them, with fair allow-
ance for wear and tear, not what they would be worth to
sell as second-hand goods. These results, secondly, were
checked by an independent computation in which the
annual product, or importation of each class of household
goods, furniture, clothing, watches and jewelry, pianos
and sewing-machines, etc., was taken into account, and an
average ' life ' in use assigned to the goods of each class.
The result of this second and wholly independent com-
putation was to afford a somewhat striking corroboration
of the conclusions reached by the first method. Allow-
ance was then made on account of the average quantity
of food, fuel, and other supplies on hand for domestic
use, yielding the aggregate of five thousand million
dollars given to the table." ^
' Eleventh Census, Wealth, Debt and Taxation, 2:8.
^ Tenth Census, 7 : 11 and 12.
388 American Economic Association.
It is not clear that the item " miscellaneous " covers ex-
actly the same things in the tenth census as in the
eleventh, and the fact that no increase was found is
perhaps not significant. But here we have again an
example of one of the worst faults of this investigation.
We are not given sufficient explanation of the real sig-
nificance of the figures to enable us to interpret them.
In making the estimate certain definite items must have
been counted. It should be stated exactly what they
were, instead of concealing them under the term
"miscellaneous."
Among the miscellaneous is also " included the value
of public libraries and of personal property owned by the
national, state, and local governments exempt from
taxation, returns of which have been received at this
office from every county and nearly every municipality
in the country." ' The division of some of the items
between the different states is necessarily arbitrary and
no criticism can justly be made of the methods used by
the eleventh census in this respect.
To sum up, we have found : (i) that no logical classi-
fication of the items of wealth to be estimated was used ;
(2) that there are probably omissions of considerable im-
portance ; (3) that it will probably be found feasible to
obtain better information concerning important subdi-
visions of some of the classes, for example land values ;
(4) that under real estate, "improvements" might be
separated from land, farm lands from town lots ; (5)
that in only three of the eight items, (the second, fourth
and fifth), including a little over 10 per cent of the
total value obtained, were the methods used fairly satis-
factory ; (6) that in the other items, covering nearly 90
per cent of the total value reported, the methods used
^Eleventh Census. Wealtli, Debt, and Taxation, 2 : 8.
Valuation and Taxation. 389
were faulty and the results doubtful. This is especially
the case with mines and quarries, railroads, telegraphs and
telephones ; (7) that in few cases are we given sufficient
explanation to enable us to interpret the figures satisfac-
torily.
It has already been noted in the introductorj' part of
this review that the estimate of the total wealth of the
country in 1890 was upon an entirely different basis
from that used in any previous census with the possible
exception of that of 1880, and that comparisons could
not, therefore, properly be instituted between the
different census reports to show the increase or decrease
of wealth from decade to decade. Nevertheless such
comparisons were made and carried out at length.
This constitutes a most serious and mischievous error.
In answer to similar criticisms upon a preliminary
publication by the Census Office of such comparisons
the reply was made, "that at this day any correction
of the figures of true valuation for any previous census
period is utterly impossible, however desirable such
correction may be, the necessary information for the
purpose not being procurable." '
The methods pursued by each census were then re-
viewed, and in conclusion the following warning was
given :
" In comparing the report of true valuation of 1890
with like valuations of previous periods it should be
borne in mind :
" First. That no statement of true valuation previous
to 1890 iricluded the value of vacant state or national
land or Indian reservations.
" Second. That the true valuation for 1870 admittedly
embraces certain duplications of value of personal prop-
'Eleventh Census. Wealth, Debt, and Taxation, 2 ; 9.
3go American Econoinic Assoeiaiio7i.
erty, arising from the taxation of mortgages and the
realt}' represented by them, and that the values are
inflated, owing to the depreciation of the standard then
in use, requiring a corrective reduction of 20 per cent.
"Third. That for i860 and 1850 the true valuation
appears to have been made by adding to the assessor's
list such an amount as would, in the opinion of the
officer reporting, compensate for the undervaluations of
the assessor. If such course was pursued, no property
exempt from taxation or which escaped the assessor's
list is included as a part of the property valued.
"These admitted differences of method pursued in
reaching the figures of true valuation for the several
census periods, and the temporary character of the Cen-
sus Office, of themselves preclude any attempt of one
census to revise the figures of a previous one ; and the
figures as published, if not as accurate as desired, can be
accepted with safety as showing in a general way a con-
tinuous increase in the wealth of the nation, the exact
proportions of which cannot be measured." '
It would seem that this answer to the objections is
not entirely relevant, and the warnings against com-
parisons have practically little value in preventing false
conclusions from being drawn w^hen the census report
itself carries out these inadmissible comparisons in de-
tail.^ It is a grand thing to have the scope of our cen-
sus inquiries enlarged with each succeeding decade, but
the unmodified results of enlarged investigations should
not be compared with those of older and narrower in-
vestigations. In this respect the form of the report in
'Eleventh Census. Wealth, Debt, and Taxation, 2 : 10 and 11.
''Ibid, Table 3, p. 14, summarised in table on p. 9. See on the same
subject an article by H. t,. Bliss, Journal of Political Economy, 4 :
86-93 (■895-96), v.'here a similar criticism is advanced. The appen-
dix to this review (pp. 4ii,ff. ), contains a list of inadmissible compari-
sons.
Valnation and Taxation. 391
the tenth census^ is somewhat better. There the valu-
ations for 1850, i860, and 1870 are republished, with ex-
planations of their significance, but no direct tabular
comparisons are made.
Although the census of 1880 undertook to ascertain
all the wealth of the country, its methods and conse-
quently its results were different from those of the
eleventh census, so that it is not wise to use these two,
even, for anything save the roughest comparisons.
It is perfectly clear that the errors of the eleventh
census as pointed out above make it undesirable to per-
petuate its methods. Thus it remains for the twelfth
census to make a fresh start and to establish a perma-
nent and perfectly satisfactory method for ascertaining
and measuring the wealth of the country. If such a
method is established and continued, we shall, perhaps,
in the future be able to measure our progress in material
well-being.
Perhaps it is not possible to outline in all its details
the method which should be adopted, but the general
outlines of what should be aimed at are not difficult to
state. First the exact date to which the census estimate
refers should be carefully determined and, as far as pos-
sible, all valuations should be reduced so as to apply to
that date. All exceptions should be clearly stated.
The space limit is also to be determined. Wealth
within our national boundaries alone should be included.
The items of wealth should be treated as far as possible
objectively. Credit instruments representing claims
upon property already counted should be omitted, but
all other credit instruments, such as foreign government
bonds, stocks and bonds of foreign corporations,
etc., might, perhaps, be properly included, if ascertain-
' Tenth Census, 7 : 1-15.
392 American Economic Association.
able. Our own government bonds, etc., may well be
omitted, although in a certain sense they represent an
increase of present wealth at the expense of the future.
But as they form a part of another investigation, any
one desiring the total present wealth of the country can
make the addition for himself. Credit currency can also
be safely omitted. Then a general, hypothetical, work-
ing classification should be determined according to
strict logical principles and along the broadest possible
lines. It may not, at first, be possible to obtain figures
for all the sub-divisions which seem desirable, but it is
well to indicate them. The classifications used in 1880
and 1890 were mere haphazard arrangements. It is
impossible from them to tell whether all kinds of wealth
are included and where any given item belongs.
The task of forming a comprehensive and elastic
classification is not particularly difficult. We have,
traditionally, two great classes of wealth, real estate
and personal property. Every item of wealth in the
world fits easily under one or the other of these.' Then
there are three ways in which any one item in these two
(or three) kinds of property may be owned, (i) It may
belong to the public, that is, belong to some branch of
the government or be held in trust for the public benefit.^
(2) It may belong to a quasi-public corporation or a
public service corporation. (3) It may belong to a
private individual. There are no other conceivable
' A possible exception is water craft, steam and sailing vessels, of
whicli we might if deemed necessary make a third class, but there can
be no serious objection to including them under personal property.
2 The test here should be whether it is legally possible for the cor-
poration or persons holding the property in trust to alienate it or so
dispose of it that a public purpose is no longer served thereby. It
would include in most instances the endowment of educational and
benevolent institutions. Church property, however, is generally
purely private property and would seldom be included.
Valuation and Taxation. 393
ways in which property can be owned than these. It is
then a very simple task to outline the proper, natural,
and logical classification of wealth for a national in-
ventory.
The following rough outline of such a classification is
presented by way of illustration. The details included
are not intended to be complete, but rather as suggestive
and explanatory.
I. Real Estate ;
A. Public:
1. L,ands :
a. National,
b. Commonwealth,
c. Local,
d. Educational and benevolent trusts.
2. Structures and improvements of all kinds :
a. National :
(I.) For defense,
(2.) For the various departments of govern-
ment,
(3.) River and harbor improvements.
b. Commonwealth :
(i.) For the various departments of govern-
ment,
(2.) For education,
(3.; Public highways, canals, bridges,
wharves, etc.
c. Local :
( I. ) For general departments of government,
(2.) For education,
(3.) Streets, bridges, wharves, etc.,
(4.) Public works — water, gas, electric
light, street cars, irrigation works,
etc.
394 Atnerican Economic Association.
d. Educational and benevolent trusts ;
(With suitable subdivisions, — schools,
colleges, universities, hospitals, asy-
lums, etc.)
B. Public service corporations : (Railroad com-
panies, street car companies, electric light
and power companies, gas companies, water
companies, irrigation companies, telegraph
and telephone companies, etc.)
1. L,ands necessarily used in the execution of
their functions. (L,and held for sale or
speculation should be included under
C. I.)
2. Improvements and structures of all kinds
necessary to the execution of their func-
tions.
C. Private :
1. L,ands :
a. Farm land, (by acre.)
b. lyOtS,
c. Mining lands and quarries, petroleum wells,
etc.,
d. Submerged lands : for oyster-beds, etc.
2. Improvements :
a. On farm lands, including houses, barns and
other structures, wind mills and tanks,
wells, fences, drains and irrigation ditches,
timber, orchard trees, bushes, vines, etc.,
b. On lots,
c. Mining and quarry structures,
d. Wharves, piers, etc.
II. Personal Property, Movables, etc. :
A. Public :
I. National :
Valuatio7i and Taxation. 395
a. Arras, ammunition, and all sorts of mov-
ables connected with the national defense,
b. lyibraries, art galleries, etc.,
c. Furniture of buildings, etc.
2. Coinmonwealth :
(General subdivisions similar to national.)
3. L,ocal :
(General subdivisions similar to national.)
4. Educational and benevolent :
(General subdivisions similar to national.)
B. Public Service Corporations :
1. Their franchises, patents, good will, etc.,
2. Machiuery and equipment,
3. Their furniture and the like,
4. Other cash assets, {i. e., not including any
credit claims).
C. Private:
1. lyive stock, poultry, etc., whether on or off
farms,
2. Farming tools and machinery,
3. Carriages, wagons, bicycles, etc.,
4. Household furniture, paintings, books, cloth-
ing, jewelry, firearms, musical instruments,
sewing machines, supplies of food, fuel, etc.,
5. Merchandise, goods and wares of dealers or pro-
ducers, (including beer, wines, liquors, etc.),
6. Tools of mechanics,
7. Professional libraries,
8. Fixtures of saloons, stores, offices, and places
of business, typewriters, etc,,
9. Machinery of mills, including engines, dyna-
mos, presses, etc.,
10. Patents, copyrights, good will of business, and
other intangible personal property.
396 Ainerican Economic Association.
D. Gold and silver coin and bnllion.
III. Water craft, (unless included in II) :
A. Public, including the wdCMj.
B. Belonging to public service corporation :
C. Private:
1. Steam,
2. Sail,
3. All other.'
Some such classification as this, proceeding along
logical and comprehensive lines, should be made. Its
construction would serve several purposes. It would
reveal, or call attention to, many forms of wealth not in-
cluded in the tenth or eleventh census. It would sug-
gest the clearest way of presenting the results. Every
form of wealth which may be discovered should have
its proper place somewhere in the classification. The
precise meaning of each item could be seen at a glance.
If such a classification were used, the only explanations
necessary would be those applying to cases in which for
some good reason items were omitted or combined with
others. Finally it would be easily possible to abstract
from such a table the figures which represented the
items covered in any previous census for comparison
with them, and there would no longer be any possible
excuse for the naive comparisons of totals representing
unlike quantities.
It is not necessary that the general classification
^In the construction of such a complete list of all kinds of prop-
erty much assistance can be obtained from the lists in use by the as-
sessors in the different states. These lists, which have been expanded
as experience demanded, are in many cases extremely comprehensive.
By noting every item mentioned in any of these forms, or assessment
schedules, and adding the kinds of property exempt, one could make
a list of every kind of property in existence. The arrangement of
these items according to some logical plan for classification, would
then be a simple matter.
Valuation and Taxation. 397
adopted should be rigidly followed. In many special
instances it would be best to depart from it. For
example, the separation of the \'alue of the real estate
of railroads from their other property is extremely diffi-
cult. The value of the right of way, the road bed, and of
the rails, bridges and other structures on the right of way
is largely dependent upon their connections with the
system. The separation of real estate from personal
property in that case would be more or less arbitrary.
Here it would be sufficient to ascertain the total value.
Should any one desire further details he could obtain
them from other sources, such as the Report of the
Interstate Commerce Commission. At the same time, if
that were done, the total value of railroad property
should not be classed as personal property, but should
form a group by itself. But the establishment of a
working classification as a means of planning the in-
vestigation, of checking the different processes, and as a
general guide in the presentation of the results, is an
absolute necessity.
II. ASSESSED VAI^UATION OF PROPERTY TAXED AND
AD VALOREM TAXATION.
That part of the census of 1890 which deals with the
assessment and taxation of property is much more satis-
factory than that dealing with wealth. Here we have
a most intricate and difficult problem treated in a man-
ner at once clear and comprehensive. For many pur-
poses it would have been advantageous had the limits
of the investigation been extended, but within the limits
set the results are nearly all that could be desired. The
errors and omissions noted are few and very insignifi-
cant. The mere enumeration of them would give them
a fictitious importance out of all proportion to their
3g8 American Economic Association.
weight. The reviewer's duty thus becomes mainly one
of exposition. It will not be amiss, however, to discuss
the extensions of the investigation which might, per-
haps, be adopted in the twelfth census.
The inquiry was directed to ascertain the assessed
value of taxable property and the amount of taxes levied
upon that property. The importance of the inquiry
arises from the fact that the taxation of property is uni-
versal in the United States. In every state and territory
in the Union, without a single exception, there is some
sort of an assessment, for the purpose of taxation, of a
considerable portion of the property of citizens. It is
nearly true that every branch of government, below the
national, levies taxes upon property.'
^ The only exceptions in 1890 were as follows :
In Connecticut no ad valorem tax on property for state purposes ;
nor for county purposes, except in three counties.
In Delaware no ad valorem tax for state purposes.
In Illinois one county levied no ad valorem tax on property except
for schools.
In Iowa a number of townships levied no tax on property except
for schools.
In Kentucky there was considerable variety in the practice of local
governments : in 4'; counties there were no municipal taxes on prop-
erty except for schools ; 14 counties levied no taxes on property ex-
cept for schools ; in 8 towns and i city there were no town or city
taxes on property for schools ; and in one county, no county tax for
schools.
In Louisiana there were numerous irregularities in local taxation
which defy classification, but which altogether are not important.
In Maine 14 plantations levied no state tax except for schools, x
levied no state tax at all, i none for schools, i town levied no state
tax at all, i none for schools, and 1 1 plantations and i town paid no
county taxes.
In New Jersey no ad valorem tajf for state purposes, except for
schools.
In Pennsylvania state ad valorem taxes fell on personal prop-
erty only.
In Rhode Island there are no county taxes ; the county in this state
is merely a judicial district for the state courts, and is not practically
a government at all, so that this is an exception in form merely.
Valuation and Taxation. 399
The assessed valuation is given under three headings:
" total," " real estate," and "personal property." These
necessarily follow the definitions given in the tax laws
of the different states.' When several different valua-
tions were made by different authorities that one was
selected which was final or which came nearest to the
true value. The purely arbitrary, occasional valuations
used in some states for the apportionment of state taxes
were not taken. In those cases the local valuations,
more frequently revised, were taken.
Ad valorem taxation is stated under the following
headings: (i) total, (2) state, (3) county and (4)
municipal levy, except for schools ; (5) state levy for
schools and (6) county and minor divisions levy for
schools.^
There are certain fundamental difficulties which beset
the compilation and presentation of the statistics, and
which complicate and largely invalidate any com-
parisons between different states. These difficulties
arise from the differences in the revenue laws of the
different states, and from the differences in fiscal prac-
In Vermont there was one town in which real estate was exempt
fromi state taxation and one in which all personal property evaded
taxation.
In Wisconsin the state tax on property is only for educational pur-
poses and to meet the debt charges.
There are a few other exceptions which defy classification. For the
most part these exceptions are due to peculiarities in the frame of local
government, rather than to peculiarities in taxation. It is practically
true that there is some kind of ad valorem taxation of some kinds of
property in every part of the country. The universality of this
method of taxation, in spite of the variety in the forms of government,
is a most remarkable fact.
' As these vary much from state to state the sums given represent
somewhat different things. This logical difficulty which cannot be
altogether avoided will be discussed below.
^ It does not appear to be feasible to segregate the levies for other
than school purposes as none of them is universally separated in the
public accounts.
4.00 American Economic Association.
tice. The kinds of property assessed are different in
every state, or, perhaps more accurately stated, the list
of exemptions is different in every state. Thus while
in 1890 the California law called for the assessment and
taxation of every kind of private property except grow-
ing crops, that of Illinois, to choose an example some-
what at random, exempted churches, certain property
devoted to education, cemeteries, possessory claims,
property devoted to purely charitable uses, free public
libraries and the property of agricultural, horticultural,
mechanical and philosophical societies. In other states
the list of exemptions was different, sometimes longer,
sometimes shorter.' To add together the assessed valua-
tions of all the states is, therefore, from a certain point
of view, to commit the error against which school child-
ren are warned when stud)dng arithmetic ; namely,
adding unlike quantities, such as two potatoes and
three apples. Not only is the legal definition of assess-
able or taxable property different in every state, but the
practice of the states is so varied as to give a still more
uncertain meaning to any figures stating the assessed
valuation. The rate of assessment to the true value and
the kinds of property which are actually reached or
which escape vary from state to state. For example,
the assessment of property in California was in 1890 at
about two-thirds of the true value, in Illinois at less
than one-fourth. At the same time a far larger propor-
tion of taxable property was reached in California than
in Illinois.
Of the differences due to the law the census very
properly took cognizance by outlining the revenue laws
' The entire list of exemptions is constantly changing, generally in-
creasing. Its growth and the variations in differents parts of the
country afford a most instructive commentary on the tendencies of
democracy and the forces which determine legislative action.
Valuation and Taxation. 401
of each state. But little or notliing is said, directly,,
about the differences in practice. Some light can be
had as to the rate at which the real estate is assessed by
comparing the assessed value of that kind of property
with the true value as given b)- the census in connection
with the estimate of wealth. But, as we have seen, the
estimate of wealth is not very satisfactory. Nothing is
definitely stated as to the amount of taxable personal
property which is exempt or which escapes, nor as to the
rate at which the balance is assessed. From no data
given by the eleventh census is it possible to ascertain
these facts. The estimate of the true value of all
tangible wealth is of no use in this connection. First,
because not all of it is taxable, and secondly, because
many things are taxable which are not tangible wealth.
It is for these reasons that the reduction of the assessed
valuation to a per capita rate or of ad valorem taxation
to a rate on the total true valuation or on the a.ssessed
valuation has little practical value for purposes of com-
parison. Thus, for example, we are told that the assessed
valuation of Illinois is $153-53 per capita and of Califor-
nia, $737.88 per capita, and, that the rate in Illinois, of all
taxation, is $4.09 on each $100 of assessed valuation,
and of California $1.70. We are further told that the
true value of taxable real estate in Illinois was $3,108,-
000,000, of which the assessment was 18.85 P^^ cent.
The true value of taxable real estate in California
(which we must not forget differs in some items from
the kinds of real estate taxable in Illinois) is given as
$515,500,000, which is assessed at about 60 per cent.
That is, real estate taxed in Illinois bears a burden of
about 1.06 per cent ; in California, 1.24 percent.^ But
' There are quite a number of other corrections which should be
26
402 American Economic Associatio7i.
it is not possible to go any further than this in estimat-
ing: the burden of ad valorem taxation. The most
serious omission is that the true valuation of personal
property that is exempt is not given ; nor are we in-
formed as to the amount of taxable personal property
which escapes by fraudulent evasion, or the rate at
which the remainder is assessed. To make the infor-
mation concerning ad valorem taxation complete the
next census should endeavor to ascertain the following
details in addition to those given in the eleventh: (i)
What part of the real estate exempt from taxation in each
state is private property and what part belongs to some
branch of the government? ' (2) Wbat part of the pe-r
sonal property in each state is exempt and what part of
that belongs to the government? (3) How much per-
sonal property escapes taxation by fraudulent evasion,
and at what rate the balance is assessed ? (4) If the
estimate of wealth is, as it has been in tlie past, con-
fined to tangible wealth, how much intangible wealth is
assessed ? ^
In connection with the difficulties which the investi-
gation into ad valorem taxation has to encounter, we
must not overlook the lack of uniformity in- the defini-
tion of real and of personal property in the different
applied before even this comparison is permissible. The distribution
of railroad property between real estate and personal properly is not
the same in the assessed valuation as in the true valuation. In Cali-
fornia a certain amount of unpatented land is ta.Nied as personal prop-
erty under the head of possessory claims ; this is exempt in Illinois.
In California all realty not belonging to some branch of the govern-
ment is taxable and in Illinois a considerable amount of such realty is
exempt. All things considered, it is probable that the average burden
on real estate is about the same in each of these two states.
' The true value of all exempt real estate vi^as estimated by the
eleventh census.
' Should some such outline as that above suggested for the estimate
of wealth find favor and be adopted, it would be comparatively easy to
ascertain these items.
Valuation and Taxation. 403
state revenue laws. Remarkable as it may seem, the
revenue law definitions do not conform very closely to
the common law distinctions nor to the accepted ideas.
As a result of these differences of definition some of the
most curious results are shown by the statistics presented
in the last census. Thus, for example, it seems at
first glance inexplicable that in the more recently
settled states or territories the proportion of personal
property taxed to the total amount of property taxed
should be so large as it is shown to be. In Montana,
Wyoming, New Mexico, Arizona, Nevada and Idaho
the amount of personal property assessed exceeded that
of real estate assessed. This appears to be very remark-
able when we note that for the country at large the
assessed valuation of personal property is only one-third
that of real property and in most of the older states even
less, while the census estimate of the true value of per-
sonal property is only two-thirds that of real property.
The fact is that this difference is largely a matter of
definition. In the states named improvements upon
lands the fee to which had not yet been acquired by
the settler and, except in Idaho, the value of his partially
matured claim to the land were assessed as personal
property.^ The significance of this difference of definition
is apparent when we notice that in these states and ter-
ritories more than half of the real estate (by true value)
was exempt from taxation, and that in the Western
division, which includes these states, 46.6 per cent of
all real estate was exempt, against less than 10 per cent
in all other divisions.^
' Idaho, Illinois and Iowa exempted possessory claims.
'Per cent of real estate exempt from taxation, 1890. (Deduced
from Table 2, Wealth, Debt and Taxation, 2 : 13.)
The United States 9.3 per cent.
North Atlantic Div 8.7 " "
404 American Economic Association.
The greatest difficulty is that no two .states of the
Union have the same revenue system, no two of them
assess property in exactly the same way, nor do they
assess the same kinds of property. So that, although
the general property tax does appear in every state,
it appears in a great variety of forms which cannot
readily be reduced to that uniformity required in statis-
tical tables. Upon this point, and after calling atten-
tion to these and other irregularities in commonwealth
taxation. Professor Seligman said in 1889: "The in-
ference from all these facts, so far as our present pur-
pose is concerned, is that the statistics of valuation and
assessment are of exceedingly little value for purposes
of comparison. If all the property, or if even all the real
estate, in the commonwealths were assessed at some
fixed ratio to its actual value, we would at least possess
some data for comparison. But as long as each com-
monwealth or county appraises its property at an arbi-
trary rate which does not appear on the books and
which differs in each instance, it is manifest that the
figures afford no exact criterion of actual proportions,
and that any conclusion based on the assumption of the
correctness of the statistics would be utterly fallacious.'"
South Atlantic Div 7.1 per cent.
North Central Div 6.3 " "
South Central Div 11. i " " (Includes Oklahoma and Indian
territory exempt. )
Western Division 46. 6 per cent.
Montana 47. 4 per cent.
Wyoming 71.4 "
New Mexico 66.7 " "
Arizona 73.4 " "
Nevada 72.6 " "
Idaho 70.3 " "
Of course, a very large portion of this was government land proper ;
still a large amount is in process of acquisition by private individuals.
'Am. Stat. Assn. Publications, 2 ; 410 (18
Valuation and Taxation. 405
III. RECEIPTS AND EXPENDITURES OF NATIONAL AND
LOCAL GOVERNMENTS.
Of the matters presented in this part of the investi-
gation we shall consider only that referring to state and
local governments, and we shall omit any consideration
of municipal or city finance.
Under the head of receipts we have an outline of the
monies covered into the various treasuries during the
fiscal years ending in 1890. Some confiision arises
from the fact that the date to which the investigation
refers is not as clearly stated as it might be and that it
differs from that to which the section on assessment and
ad valorem taxation applies. The ad valorem taxation
referred to in the first part is generally that levied on
the assessment made during the year 1890, and hence
was mainly for the support of the governments during
the year 1891. That referred to in the second part is
for the most part that which was levied on the assess-
ment of 1889 and paid during 1890. There could be
no serious objection to such changes of date as this if
they were always clearly stated in some prominent place.
But one fault of the eleventh census is that the date to
which the statistics refer is frequently hard to find,
being buried in the explanatory text, and not at all
uniform.'
The receipts of the state and local governments are
given under the following headings :
Total.
'In some of the tables, notably those showing the receipts and ex-
penditures of the states in detail and of the counties in the same way,
a most excellent plan is followed of introducing a column showing
the exact date to which each line of figures refers. Some such plan
should be carried through the whole of the work. In this respect the
tenth census was superior, the explanatory text being in every case
headed by a statement of the date to which the figures refer.
4o6 American Economic Association.
Ad valorem taxes on real and personal property.
Corporations separately reported :
Banks and bankers,
Railroads,
Other.
Licenses :
lyiquor,
Other.
Penal and reformatory institutions.
Income from funds and investments.
Water works and other enterprises, net.
Sale of property.
Fees, fines and penalties.
Special assessments :
Streets and bridges.
Sewers.
Interest on deposits.
Reimbursements and miscellaneous.
In a general way this classification is most excellent.
It is certainly clear and logical. Little improvement
upon it can be desired. The labor which it cost to
rearrange the complex accounts of the public monies,
which are kept by about as many different systems as
there are separate treasuries must have been tremendous.
The few tests that I have been able to apply show the
work to have been done carefully and accurately. The
only questions for consideration in connection with the
plan of the twelfth census arise in connection with the
desirability of more detail on certain points.
Ad valorem taxes on real and personal property fur-
nished, in 1890, approximately 75 per cent of the total
receipts of state and local governments. The balance
was raised by special taxes and other forms of revenue
cited in the above list. Many of these special sources
Valuation and Taxation. 407
of revenue are of growing importance, while the general
property tax is not holding quite the same position of
relative importance among the different revenues which
it held some years ago. It is unfortunate that the tenth
census afforded no statistics from which we can measure
the development of new sources of income. For this
purpose it would be desirable if some of the items were
given more in detail. Although the item of miscella-
neous is only $27,000,000 out of a total of ^584,000,000
or only 4.8 p^r cent, yet it embraces at once the oldest
and the newest ta.xes in use, and some of the most inte-
resting sources of revenue. Among other things it in-
cludes poll taxes and inheritance taxes. That the
former were not segregated is remarkable in view of
their age and general prevalence. But the interest in
the latter is more recent than the eleventh census. In
1890, inheritance taxes existed in but five states.
Between that date and the close of the legislative ses-
sions of 1897 the older forms of the inheritance taxes
have been much extended and ten other states have
adopted that method of obtaining revenues.
Under taxes on "corporations separately reported"
two things appear to be confused, which it would be
well to keep separate. They are: (i) the taxes levied
upon certain corporations as banks, and railroads, under
the regular forms of and by the method of the general
property tax, and (2) special taxes upon corporations
according to some other plan. Thus in California a
part of the taxes on railroads happen to be separately
reported mereh' because certain forms of railroad prop-
erty are assessed by the state board of equalization
and not b}- the count}' assessors, a method of procedure
involving no change whatever from the principles of the
general property tax of which this is a part ; while in
4o8 American Economic Association.
the same column we find the corporation taxes of Penn-
sylvania, Connecticnt and other states, which are based
upon entirely distinct principles and methods.'
In a general way it may be stated that more detail is
desirable in all statements of receipts oilier than taxes
on assessed valuation, and the meaning of the figures
should be more fully explained. The headings and the
columns give an artificial appearance of uniformity that
is entirely lacking as a matter of fact. Taxation varies
in character so much from state to state that no bald
statement of figures is adequate. It is not possible to
assume that many, if any, of the users of the census are
sufficiently familiar with the law and practice of the
different states to interpret the figures given correctly.
Every table should, therefore, be accompanied by full
explanations.
Of the tables concerning state expenditures little need
be said. So far as they go they appear to be eminently
satisfactory. The expenditures are given under the fol-
lowing headings :
Legislative,
Executive,
Judicial, including county courts, inquiries, and in-
quests.
Military,
Educational purposes and public schools.
Charitable,
Interest,
Penal and reformatory,
Buildings and sites, including care and maintenance.
Waterworks and other enterprises, net,
' Moreover all of the taxes on railroads in California are not sepa-
rately reported, a part being included in the assessment made by the
county assessors.
Valuation a?id Taxation. 409
Salaries separately reported, fees, and commissions,
Roads, sewers, ditches, and bridges.
New buildings, works, and sites, separately reported.
Police,
Public parks and places,
Fire,
Health,
Lighting,
Miscellaneous.
The uses to which statistics of public expenditure
may be put are so varied, the expenditures themselves
are so complex that a strict classification is practically
impossible and the broad divisions above cited are prob-
ably as satisfactory and generally useful as could be de-
vised. Especially valuable are the tables showing the
receipts and expenditures of the commonwealths for
■each year of the decade from 1880 to 1889. These
tables are full of instruction and interest and should if
possible be continued.
IV. GENERAL CONCLUSION.
While the investigations of the eleventh census into
taxation are eminently satisfactory within their ac-
knowledged limits, there is still room for considerable
expansion and rearrangement before the final scheme is
adopted to be continued by each census throughout the
twentieth century. In the first place the point of view
from which the whole investigation is conducted should
be changed. In the earlier censuses the investigation
into state and local taxation was made, not for its own
sake at all, but as a part of an attempt to ascertain our
national wealth. The same purpose to a large extent
4IO American Economic Association.
prevailed in the eleventh census, although large sections
were added which dealt with public finance merely for
its own sake. It is now time that a new point of view
should be chosen. The investigation should no longer
be one into assessment and taxation, in which taxation
is simply an after-thought and the assessment the prime
object of research. We should have an investigation
into taxation for its own sake ; assessment will then fall
into its proper place as a subordinate part of taxation.
So far as the assessment throws any light upon valua-
tion or wealth it can still be used. But as was shown
in the first part of tliis review the light obtained from
the assessment upon the true wealth of the country is
very small.
The proper aim of the second part should be to ascertain
the amoimt and character of the public revenues and ex-
penses. This aim is of sufficient importance to justify its
separate treatment. All sources of revenue should be
given equal attention. Tlie importance of the general
property tax and with it of the assessment of property is
gradually declining. That of otiier sources of revenue
is increasing. Unfortunately we have no statistics of
local taxation more recent than those of the census of
1890. But we have some light upon the development
of commonwealth taxation, and it is fair to assume that
local taxation will show the same general tendencies,
although not to the same extent. In 1890, about one
fourth of the revenues of the states was raised by means
other than the general property tax. In 1900 the pro-
portion so raised will be considerably greater. Accord-
ing to an investigation made by Dr. E. D. Durand for
the New York State Library' covering commonwealth
^See Library Bulletin — Legislation, No. 8, March, 1897 ; State
Finance Statistics, 1890 and 1895.
Valuation and Taxation. 411
revenues and expenditures, the receipts from the gen-
eral property tax by the commonwealth alone were
about the same in 1895 ^^ they were in 1890, while the
receipts from other sources, or from special forms and
applications of the general property tax, having practi-
cally the same significance as new taxes, increased
about 25 per cent. That is, the entire increase in the
revenues of the states was from sources other than the
general property tax. These new sources of revenue
should be more fully treated as their importance grows.
The eleventh census took cognizance of all sources
and forms of revenue, so that this suggestion involves
no fundamental change in the plan of the census. It
merely calls for more emphasis on certain parts and a
slig-ht rearrang-ement of the items so as to show the rela-
five importance of the different parts more accurateh'.
V. APPENDIX.
In the foregoing discussion several references have
been made to the use by the eleventh census of inad-
missible comparisons. To make the criticism more
concise, it is in order to append a list of the tables which
seem to offend, with the reasons for the criticism in each
case. The list contains only the general tables. Many
detailed statements expanding these tables are, as a
matter of course, open to the same criticisms.
(i) The table in the text, page 9, first part. True
valuation for each census year 1850 to 1890, inclusive :
total, per capita, and increase per cent.
The comparison here drawn is inadmissible because
the true valuation is of different things in each census ;
that is of different categories of wealth. Furthermore,
the estimates were made l)v different methods each time,
412 American Econoinic Association.
so that the term true value has a different meaning in
each case.
(2) Table 3, page 14. "Comparative summary of the
true valuation of real and personal property, total and
per capita, by states and territories (exclusive of
Alaska) : 1850 to 1890."
This table gives again tlie comparison just criticized
and is open to the same objection.
(3) Table 5, page 16. "True valuation of real and
personal property, arranged in order of amount ; per
capita valuation, per cent of true valuation of real estate
and improvements of total valuation, assessed valuation
of real and personal property taxed, and per cent of
assessed valuation of true valuation, by states and terri-
tories (exclusive of Alaska) : 1890. "
The criticism here affects the column headed " per
cent of assessed valuation of real and personal property
taxed of true valuation." This column purports to give
the rate of underassessments and evasion. If that is
not what it was inserted for, it is meaningless and use-
less. But as a matter of fact it gives something very
different and totally illogical. The comparison is
actually between the assessed value of property taxed
and the true value of all property taxable and untax-
able, assessed and unassessed. It tells us neither the
rate of underassessment, nor the percentage of evasion,
nor the percentage of property exempt. The quantities
dealt with have an entirely different quality in each
state ; or, in other words, the intention of the terms
used varies from state to state so that comparisons are
absolutely impossible.
(4) Table i, page 59. " Summary of the total and per
capita assessed valuations of real and personal property
Valuation and Taxation. 413
taxed, by states and territories (exclusive of Alaska,
Oklahoma, and Indian territor)') : 1850 to 1890. "
Also the second part of the table in the text, page 9,
relating to the assessed valuation of real and personal
property taxed, showing the total, the per capita and
the increase per cent for each census : 1850 to 1890.
The assumption made in the text (see page 11 ), and
carried out in these tables, that the increase in the
assessed valuation of real and personal property taxed
shows an increase in wealth is naive in the extreme.
An increase in the assessed valuation of property, total
or per capita, may mean any one of several things be-
sides an increase in wealth. It may mean, for example,
that the rate of assessment has been raised, or that prop-
erty which evaded taxes has been reached. The assess-
ment may remain stationary or increase while the
amount of wealth decreases. Whatever may be the law
or the assumed practice the fact remains that the assessed
value is a more or less arbitrary value placed upon certain
kinds of property for purposes of taxation. Its increase
or decrease year by year has no relation to the true
value. It is not unusual for a state board of equaliza-
tion to raise the assessment of a state or of a large part
of a state from 5 per cent to 20 per cent in a single
year. A revision of the tax law of California. in 1872
more than doubled the assessment in a single year. It
would be hard to prove that the wealth of the state
doubled in that one year.
The increase or decrease in the assessed valuation has
a bearing on taxation. It has nothing directly to do
with wealth.
(5) Table 3, page 61. " Summary of the total and per
capita ad valorem taxation and the rate per $100 on the
total assessed valuation, by states and territories (exclus-
414 American Econoinic Association.
ive of Alaska, Oklahoma, and Indian territory) : i860
to 1890. "
Without proper reference to the other sources of
revenue the increase or decrease in ad valorem taxation
per capita has little significance.
The charts and maps displaying these comparisons
are open to the same criticisms.
Carl C. Plehn.
University of California.
Suggestions in Regard to the Statistics of Municipal Finance
in the Census of 1900.
The natural starting point of this discussion is the
municipal finance statistics of the eleventh census.
These statistics are inchided in two volumes on Wealth,
Debt, and Taxation, and are divided into three general
groups as follows :
T. Statistics of indebtedness. (Pt. I.)
2. Statistics of assessed valuation and ad valorem
taxation. (Pt. II.)
3. Statistics of receipts and expenditures. (Pt. II.)
We shall first make certain suggestions relative to the
general scheme of presentation as a whole and shall then
take up each of the three parts separately. In doing
this it will contribute to clearness and completeness of
presentation to embody suggestions in the form of
schedules,' the use of which, it is believed, would yield
the desired results. They should be regarded mereh' as
suggestions subject to alterations in detail as experience
in carrying out the work may show to be desirable.
Systems of municipal finance are so diverse that it
would be impossible to determine beforehand in detail
the most desirable schedules. This can be done only
with all the facts at hand. It is believed, however, that
these schedules in their main principles of classification,
are practicable and would yield valuable results.
SUMMARY OF PRINCIPAL SUGGESTIONS.
I. Treat the different branches of municipal finance
(debt, valuation, taxation, revenue, expenditure) together,
thus presenting a view of the subject as a whole.
'Appendices I-III, pages 455, ff.
4i6 American Economic Association.
2. Treat separately the different sorts of municipali-
ties, laying special emphasis on cities, and, among cities,
on the larger cities.
3. Divide cities into several groups on the basis of
population and combine with this classification a classi-
fication according to states and groups of states.
4. In order to save space and expense give, in the
case of the smaller cities and other municipalities, only
the combined figures for each population group within
each state.
5. Treat receipts and expenditures, of cities especially,,
in greater detail and with a better grouping of items
than was done in the eleventh census, distinguishing ex-
penditures for operation and maintenance from expend-
itures for additions to real estate and equipment.
6. In combining the figures for states, counties, and
municipalities, give the per capita as well as the act-
ual figures and show what percentage of the population
of the state is included in each group of municipalities
for which figures are given.
GENERAL SUGGESTIONS.
I. The first criticism of the eleventh census that sug-
gests itself is that it contains no presentation of the sta-
tistics of municipal finance as a whole. In presenting
the finance statistics of the various political and admin-
istrative divisions of the country there are possible two
principles of classification which we may term the finan-
cial and the political or administrative. According to
the former our primary classification rests on the dis-
tinction between classes of financial phenomena : debt,
valuation and taxation, revenue and expenditure. The
Municipal Finance in the Twelfth Census. 417
facts in regard to each political and administrative
division are separated and grouped, with like facts col-
lected from other political and administrative divisions,
under the general class to which they belong. In this
way we obtain a view of public indebtedness as a whole,
of valuation and taxation as a whole, and of revenue
and expenditure as a whole, but not of the financial sys-
tems and conditions of states, counties, cities, etc. Our
knowledge of these comes piecemeal and not as a whole.
If the second of the two possible methods be adopted,
the primary distinction is that between the different
sorts of political and administrative bodies. The main
divisions would then be statistics of state finance, statis-
tics of county finance, statistics of municipal finance,
etc. The facts, to whatever division of finance they
belong, would then be grouped primarily according to
the sort of political or administrative division in con-
nection with which they occur. We should then have
a view of the finances of states, counties, etc., but not of
public indebtedness, etc., for the country as a whole.
It cannot be said that one of these methods of classifica-
tion is more correct than the other. It is not a question
of correctness, but of which method is calculated to
throw more light on questions of public finance in the
forms in which they commonly present themselves and
are studied. The census has adopted the financial prin-
ciple of classification and in so doing, it has, I believe,
made an error of judgment. We are interested not so
much in the study of public indebtedness, of valuation
and taxation, of public revenue and expenditure, as we
are in the financial systems and conditions of our states,
counties and cities. The different parts of the financial
4i8 American Economic Association.
system of a state or a city have a bearing upon each
other, a unity, the significance of which is lost when
these parts are separately treated. I would suggest,
therefore, the great importance of presenting the statis-
tics of municipal finance as a whole, and, in general,
although the suggestion falls outside the scope of this
report, that the primary classification of finance statis-
tics be on the basis of political and administrative divi-
sions.
It is true that the question between the two principles
of classification is largely one of emphasis. Whichever
principle is adopted as primary, full summaries in accord-
ance with the other should be presented. If the eleventh
census had done this, there would perhaps be no ground
for criticism ; but the only attempt to present the main
facts of municipal finance as a whole is contained in a
single table' and is only partial in character, containing
no statement of revenue and expenditure. The table
referred to presents the figures for each municipality
having a population of 4,000 or over in 1890, the group-
ing being by states with the order under each state
alphabetical.
The figures for revenue and expenditure are else-
where^ given for each municipality of 4,000 or over, and
there is no apparent reason why a summary of these
figures should not have been incorporated in the table
in question and its value thereby greatly increased. A
schedule which it is believed would present a satisfactory
summary of the finances of municipalities is suggested
in appendix 1.=" The terms employed with reference to
receipts and expenditures are taken from the tables
' Eleventli Census. Wealth, Debt and Taxation, 2 : 376-403.
= Idem, 2 : 558-599.
'See below, p. 455.
Municipal Finance i?t the Twelfth Census. 419
showing the same facts in detail and should be inter-
preted in the light of those tables.'
The schedule proposed invoh'es much more than the
mere addition of a summary of receipts and expenditures
to the schedule employed in the eleventh census, but the
facts and comparisons called for are not more detailed
than is necessary to fulfil the purpose of such a sum-
mary. This should be, not merely to present and relate
to each other the main facts of municipal finance at the
census date, but also to relate these facts to similar facts
of earlier periods and thereby furnish the data for
observing both the existing condition and the tenden-
cies at work in the development of municipal finance.
2. In order to get the best results it will be necessary
to distinguish and treat separately the different sorts of
administrative bodies hitherto included in the census
under the head "municipality." The use of this term
in the census varies somewhat in different portions of
the work, but in all cases it is made to include adminis-
trative bodies very unlike in character.^
'Appendix III, p. 457.
' ' ' The statistics of municipal indebtedness embrace the amount of
indebtedness of every city, village, borough, town, township, fire,
water, or irrigation district, precinct, and plantation in the United
States, being, as far as known to this office, all the political divisions
of the state less than county having power to contract debt, except
the school district, and the poor district of Pennsylvania." Wealth,
Debt and Taxation, i : 75.
"The term 'municipality,' as used in these tables, includes cities,
townships, towns, villages, boroughs, and all other incorporated
divisions of a county, exclusive of school, irrigation, and fire dis-
tricts." Idem, 2 : loi.
No definition of "municipality" is given in connection with the
statistics of receipts and expenditures, but an examination of the
tables will show that it includes only cities, towns, villages and
boroughs. Apparently, however, when practicable, the accounts of
administrative bodies having special functions and doing their work
within the boundaries of the city or corresponding division are in-
cluded in the accounts of the latter. This at least would seem to be a
420 American Economic Association.
This grouping of dissimilar objects is unfortunate.
The same reason which leads to the separate treatment
of the iinances of state, county and municipality should
lead us if possible to distinguish, at least, between the
city and the unlike administrative bodies with which it
is grouped in the census. A city, as distinguished from
other municipal bodies, deals with the interests of a com-
pact community and performs a great \'ariety of functions,
many of which are the direct outgrowth of the density
of population in the community which it serves. The
same conditions which determine its character as an or-
ganization determine also the character of its expenses,
the sources of revenue which it controls, and hence its
financial system. It is certainly desirable to separate
so far as possible the statistics dealing with the finan-
cial systems of such bodies from the statistics dealing
with the financial systems of towns and similar adminis-
trative districts, the organization and financial systems
of which are determined by the needs of scattered popu-
lations living under conditions essentially different from
those of the city community. It would be a distinct
gain if the municipal finance statistics of the twelfth
census should treat separately : i. cities ; 2. towns,
townships, villages and boroughs ; 3. minor administra-
tive divisions other than, and not included in, those
mentioned under i and 2. The more important classes
among the divisions included under 3, viz, school, poor,
fire, irrigation districts, etc., should be separately noted.
fair inference from the statement {Idem, 2 : 407) : "In municipalities
having less than 50,000 population the expenditures for schools not
under immediate municipal direction are not included, the district
having charge of such expenditures being independent and frequently
not co-extensive with any municipality."
Whatever may be thought of any one of the above uses of the term,
there can be no doubt that the use of the term in different senses iri
the different branches of the work is a distinct disadvantage.
Municipdil Finance in the Twelfth Census. 421
It must be admitted that it is a matter of some dif35culty
always to distinguish between the city and other muni-
cipal bodies. We must be guided by facts, not names.
We are concerned not so much with the study of " cities "
as of administrative bodies performing city functions.
Thus, if within the area organized as a city, there exist
other administrative bodies such as a town, school dis-
trict, fire district or borough, having boundaries practic-
ally conterminous with those of the city and performing
functions commonly performed by a city government,
their finances may be properly included with those of
the city.^
If a compact community, in which have developed the
needs characteristic of the city, still retains its primi-
tive form of organization as a town on which, perhaps,
have been imposed special forms of organization to
meet new needs as they arose, such a town or group of
administrative bodies may properly be treated as a city,
provided tliat, where a number of organizations exist
within the same territory, they are so nearly conterminous
as to make it practicable to combine their financial state-
ments. Tlie line between cities and other administra-
tive divisions is not, therefore, perfectly clear. The
only rule is to accept the form of organization as prima
facie the determining factor, admitting exceptions as oc-
casion seems to require.
The practice of the tenth census in regard to group-
ing the accounts of different administrative divisions,
'No exception should be made in the case of the school district.
There is, of course, no objection to a separate presentation of the fi-
nances of the public school system, but the management of the schools
in many parts of the country is in the hands of the cities and towns
and even when this is not the case the expenditures for schools, and
the indebtedness incurred on account of them, are a part of the ex-
penditures and indebtedness of the city and town communities in
which the schools are situated.
422 American Economic Association.
serving the same city community, in the tables of re-
ceipts and expenditures of cities with a population of
7,500 or more, was much more clearly stated, and appa-
rently more nearly in accord with the principle above
sue2;ested, than was the case in the eleventh census.
The explanatory notes, preceding the tables of receipts
and expenditures and showing the practice followed with
reference to each state, which we find in the tenth cen-
sus,' are wholly lacking in the eleventh. The determi-
nation of the exceptions must be to some extent a mat-
ter of judgment, and the results consequently only ap-
proximate, but it is believed that the distinction could
be made sufficiently accurate to be of great value.
Whatever the decision reached it should hold good for
all branches of the statistics presented, otherwise the re-
sults reached in these different branches cannot be
brought into relation with each other.
3. Comparatively little attempt at grouping is made
in the municipal finance statistics of the eleventh cen-
sus. In the table showing municipal debt in detail''^
municipalities are grouped geographically under the
states and counties in which they are situated, but there
is no grouping according to population. In the table
showing debt less sinking fund and population for 1880
and 1890,' separate totals are given for places with a
population of 4,000 or over, and places with a popula-
tion less than 4,000, grouped according to states, accord-
ing to the geographical groups of states, and for the
country as a whole. In the tables^ showing the purposes
of issue, the rates of interest and the dates of maturity
^ Tenth Census, 7 ; 215-218.
2 Eleventh Census. Wealth, Debt and Taxation, i : 329-534.
' Idem, 535-554.
<- Idem, 556-851.
Municipal Finance in the Twelfth Census. 423
of bonds, the grouping is merely geographical, by states
and counties, the figures for each place with a popula-
tion of 4,000 or over being separately given. In the
table showing principal of debt, annual interest charge,
average rate of interest, and interest charge per capita,'
distinction is again made between places with 4,000 or
more population and those with less, separate totals for
the two classes being given for the country as a whole,
for the great geographical groups of states, and for each
state separately.
In the tables dealing with assessed valuation and ad
valorem taxation,^ no attempt is made at other than geo-
graphical classification by states and counties.
In the tables dealing with receipts and expenditures^
distinction is made between places with 50,000 or more
population, and those with 4,000 but less than 50,000.
The cities of 50,000 and over are arranged in the order
of population ; those with a population of 4,000—50,000
are arranged alphabetically under the states in which
they are situated. Classification on the basis of popu-
lation might advantageously be carried much farther-
The size of a city exercises a strong influence on its
finances and there is no way in which the character and
extent of this influence can be indicated other than by
classifying cities on the basis of population. The fol-
lowing classification would not be too minute for this
purpose :
1. Cities with population of 350,000 or over.
2. Cities with a population of 100.000 but less than
250,000.
3. Cities with a population of 50,000 but less than
100,000.
1 Idem, 856-861.
^ Idem, 2 : 102-373.
3 Idem, 410-411, 420-451, 554-557, and 560-599-
424 American Economic Association.
4. Cities with a population of 25,000 but less than
50,000.
5. Cities with a population of 10,000 but less than
25,000.
6. Cities with a population of less than 10,000.
Within each of these classes the geographical group-
ing by states and groups of states should be preserved
in order to bring out the influence exercised both by
geographical situation and administrative organization.
It does not, however, seem advisable to follow the prac-
tice of the eleventh census in many of its tables, and
carry the geographical classification to the extent of
grouping the cities within each state by counties. To
do so would be practically to destroy the value of the
classification by population witliout any compensating
advantage.
Whether the primary classification should be on the
basis of population or geographical situation is not a
matter of the first importance. It is important that the
two principles should be combined and that the scheme
of classification followed should be uniform throughout
all branches of the statistics presented.
The financial sj^stems and condition of the larger
cities, present problems of the first importance and
should be treated in much greater detail than would
be practicable for all cities. This detailed treatment
should certainly extend to all cities with a popula-
tion of 100,000 or over and if possible to those with a
population of 50,000 or over. In the case of the smaller
cities not only would the more limited character of their
functions involve a less detailed treatment but such
cities might advantageously be grouped (only the figures
for the group as a whole being given) and much space
Municipal Finance in the Twelfth Census. 425
thereby saved for the presentation of more important
matter.
4. While statistics of municipal finance properly
classified throw much light on the character and extent
of municipal functions and the differences which exist
in this respect between municipalities differing in size
and belonging to different political systems, it is equally
true that it is essential to the formation of a sound
judgment in regard to the finances of cities, and still
more to an intelligent comparison between the finances
of cities belonging to different political systems, that we
have a knowledge of the powers and functions assigned
to the cities in question, and of the role which they
play in the political and financial systems of which they
form a part. This knowledge can be furnished only by
explanatory text. Such explanatorj- matter is furnished
in both the tenth and eleventh censuses, in connection
with the statistics of debt, valuation and taxation, but
in neither census is there adequate explanatory matter
in connection with the receipts and expenditures of
cities, making clear their relation to the receipts and
expenditures of other minor divisions and the state
itself.
II.
STATISTICS OF INDEBTEDNESS.
Presentation in the eleventh census. — The figures of
municipal indebtedness in the eleventh census are given
in the following tables, omi.ssion made of certain tables
of summaries.
I. A detailed statement by states and counties,' show-
ing for each municipality, total debt less sinking fund
(1880, 1890), debt of 1890 in detail (bonded, floating,
' Wealth, Debt and Taxation, i : 330-534.
426 American Economic Association.
sinking fund), population (1880, 1890) and debt less
sinking fund per capita, (1880, 1890).
2. " Total and per capita indebtedness of municipali-
ties having 4,000 or more population" by states.'
3. " Purpose of issue, rate of interest, and date of
maturit)' of bonds of the states, counties, and munici-
palities of 4,000 or more population outstanding in
1890."'
4. " Statement showing the national, state, and classes
of the local bonded debt of the United States, and the
amount, average interest rate, and per capita interest
charged thereon for 1890." ' In this table municipali-
ties are not treated simgle, but totals, by states and
groups of states, are given, for municipalities with 4000
or more population and for those with less than 4000.
Suggestions. — In addition to the general suggestions
already made, namely, the division of municipalities into
I, cities ; 2, towns, townships, villages, and boroughs ;
3, other minor administrative bodies ; and the more
extended classification of cities on the basis of popu-
lation, it is believed that the following changes and
additions would constitute real improvements :
I. Omit tables described under i, 2 and 4 above.
Those portions described under i and 2, which make
comparisons between successive census years have
already been provided for in Appendix I. Those por-
tions dealing with the debt of 1900 in detail are pro-
vided for in the schedule proposed under 3 b, below.
Those portions described under 4 above, which show
principal of bonded debt, interest charge and average
1 Idem, I : 536-554-
^ Idem, I : 562-851.
^ Idem, I : 857-861.
Municipal Finance in the Twelfth Census. 427
Tate of interest are provided for in the suggestions made
under 3 below and the per capita interest charge is
.shown in the schedule proposed in Appendix I.
2. Add to the table described under 3 above, one
showing the dates of issue of the debt outstanding in
1900. Such a table was included in the Tenth Census.'
It affords valuable information and there is no apparent
reason why it should have been omitted in 1890.
In that portion of the table dealing with " purpose of
issue " some clianges might advantageously be made.
^' Cemeteries," the aggregate debt incurred on account
of which is returned as $196,250 might be omitted.
Rivers and harbors, wharves, and canals, might be
stated separately. Issues in aid of railroads might be
distinguished from issues in aid of other private indus-
trial enterprises. " Streets " might be subdivided into
" acquisition of land," " opening and construction,"
^'maintenance and repair." Gas works, electric light
.and power works, conduits, and other industrial enter-
prises which might prove to be of sufficient importance
should be added. The item "refunding old debt"
should be reduced as much as possible by distributing it
under otlier headings, in so far as it is possible to obtain
the requisite knowledge of the character of the debt
refunded. It is not evident how far this attempt was
made in the eleventh census but the amount entered
under this head,' $291,095,556 out of a total bonded
debt of 11,135,794,064, is so large as seriously to di-
minish the value of the table. While these changes
would considerably increase the value of the table, they
would not prevent the making of comparisons with the
figures for 1890 and 1880. It would be advantageous
'Tenth Census, 7 : 718-753.
HVealth, Debt, and Taxation, i : 557.
428 America7i Economic Association.
also to state in connection with the debt issued for each
purpose what percentage it constitutes of the total issue.
To that portion of the table showing the amount of
debt issued at various rates of interest should be added
columns showing total interest charge and average rate
of interest.
There should also be added tables of summaries
showing, at least for the different classes of cities, the
figures for 1900 in comparison with those for 1880 and
1890.
3. Add tables showing for the larger cities :
a. the debt movement during intercensal years.
b. a comparison for the census year between
debt and productive assets.
Schedules I and II, appendix II, are suggested
as adequate for these purposes.
It certainly shows the want of a sense of proportion
in the census that the debts of the larger cities are
treated in much less detail than are the debts of the
states, although the latter are much less in amount than
the former, are diminishing rather than increasing, and
present no problems equal in importance to the problems
connected with the enormous and increasing indebted-
ness of our great cities.'
' The bonded debt of the states in 1890 aggregated 1224,175,044. The
aggregate bonded debt of New York, Philadelphia, Chicago, Brook-
lyn, Baltimore and Boston exceeded the debt of the states by
$120,093,211. The census of 1890 {Mem, i : 147-243) not only gives,
for the states both classes of facts called for above under "a" and
" b " and extends the table showing cash and productive assets so as
to cover the intercensal j-ears, but [Idem, i: 81-145) provides a full
explanatory text describing both the character of the debt and various,
productive funds.
M2i7iicipal Finance in the Twelfth Cejistis. 429
III.
ASSESSED VALUATION AND AD VALOREM TAXATION.
The figures for municipalities are given b)' states and
counties,' the municipalities being arranged alphabeti-
cally under the counties in which they are situated.
The figures for each state are preceded by text giving
an account of methods of assessing and levying taxes
in the slate.
The items of this tabulation so far as concerned with
cities are provided for in the summary table suggested
in Appendix I. In its place it would be valuable to
show the details of assessment so far as possible ; for
real estate, to distinguisli the assessment on land from
the a.ssessnient on improvements ; for personal property,
to show separately assessments on machiner}-, stock in
trade, securities of corporations, mortgages and such
other forms of personal property as the assessment lists
when examined might show to be of sufficient import-
ance. It is impossible, however, to propose any schedule
covering these facts until an examination of assessment
lists shall show in regard to what sorts of property
separate statements can be made for a sufficient number
of cities to justify the attempt.
IV.
REVENUE AND EXPENDITURE.
General considerations. — There can be no doubt that
this branch of finance statistics presents difficulties much
greater than those of the branches above considered.
Before taking up the schedules in detail attention should
be called to the following general considerations which
^ Idem, 2 : 103-373.
430 America7i Economic Association.
should influence both the arrangement and the interpre-
tation of the schedules.
1. In no branch of municipal finance statistics is there
greater need of an introductory text showing the part
assigned to municipalities in the administrative systeni
of the state.
2. Tlie figures should represent so far as possible city^
revenue and expenditure only, excluding those items of
revenue and expenditure whicli are found in tlie muni-
cipal accounts only because the city acts as the agent of
otlier political and administrative bodies in the collec-
tion and expenditure of revenue. When the city col-
lects the state taxes along with its own, tlie method of
treatment is simply to deduct such items from both
sides of the account. But when the state pays the city
for caring in its institutions for certain inmates, or
makes a grant for the support of some branch of city
work, the proper course is not quite so clear. Such pay-
ments and grants are in a sense a portion of the city's
revenue, and their expenditure a portion of the city's
expenditure, but they constitute also a portion of the
revenue and expenditure of the state and evidently can
not be counted for botli city and state when we consider
the finances of the state and city as portions of a single
whole. Probably the best way is to include such items
in the figures for the city but to state them separately
so that they may be easily deducted when the purpose-
in view renders it necessary.
3. The figures should represent real revenue and ex-
penditure as distinguished from that which is merely
nominal. Thus revenue and expenditure growing out
of the sale or purchase of securities incident to changes.
' The term " city " is used for brevity. What is said of cities would,
be true of other municipalities also.
Municipal Finance in the Twelfth Census. 431
in the investment of funds form no part of the revenue
and expenditure for municipal purposes.
Many cities keep their accounts in the form of
" funds," transfers between which appear as revenue or
expenditure in the accounts of the separate funds, and
as both revenue and expenditure in the accounts for the
city as a whole, when these are made up by simply add-
ing together the accounts of the different funds. Such
■nominal revenue and expenditure should be carefully
excluded. To accomplish this we must treat all revenue
and expenditure as going into and out from a single
treasury. All balances on hand at the beginning or
end of the year, to whatever fund credited, should be
treated as portions of the balance in the general treasury ;
all payments from funds, except transfers to other funds
or to the general treasury (which transfers should be
omitted), should be treated as payments from the gene-
ral treasury ; and all revenue credited to such funds, ex-
cept transfers from other funds or from the general
treasury (which transfers should be omitted), should be
treated as revenue received by the general treasury.
In this way alone can we obtain a true statement of
actual revenue and expenditure. While in the case of
" funds," it is comparatively easy to follow out this
principle, there are somewhat analogous cases which
present serious difficulties. Such a case arises when
one department renders services or supplies materials
like water or lights to other departments of the city
government. These services may be rendered free of
charge or charged to the department using them. In
the latter case the amount so charged will appear in
both the revenue and the expenditure of the city and
will correspondingly increase its budget. Neither the
cla.ssification which includes nor that which excludes
432 American Economic Association.
such items can be said to be for all purposes the more
correct ; one will be more valuable for some purposes,
the other for other purposes. Here again, therefore, the
best way is not to exclude such items but so to state
them that they may be distinguished, and hence may
be included or excluded according to the requirements
of the special purpose in view.
What has been said concerning " funds " applies to
the sinking fund. Payments from the city treasury to
the sinking fund are not expenditures but additions to
the city's reserve, while payments from the sinking fund
to the treasury are not portions of the city's revenue but
drafts on its reserve. On the other hand payments from
the sinking fund for the redemption of debt are a part
of the city's expenditure, and the interest on the se-
curities held in the sinking fund a part of the city's
revenue.
For practical reasons, however, it seems best in this
case to make an exception to the general principle and
to treat the sinking fund as a separate account. The
reasons for this may be stated as follows :
a. To state first a negative reason : the disadvantages
(confusion and duplication) which would follow a gen-
eral recognition of separate " funds " would not exist
when we recognize only one such fund, since its relation
to the accounts of the general treasury can be so stated
as to make the facts perfectly clear.
b. A positive reason may be found in the fact that the
practice of keeping such funds is practically universal
in municipal finance, and the part which they play is so
important that it is desirable to bring out clearly their
relation as separate funds to the general finances of the
city. So accustomed, indeed, have we become to think-
ing of the sinking fund as something separate from the
Municipal Finance in the Twelfth Census. 433
general treasury that any attempt to merge the accounts
of the two would probably lead to confusion rather than
clearness.
4. Receipts precisely alike in character are differently
designated in different cities and expenditures precisely
alike in character are assigned to different departments.
Thus what is termed in one city a fee may be termed
in another city a license, a tax, or an assessment. The
cleaning of the streets or the removal of garbage may be
in the hands of the street department, of the health de-
partment, of a separate department organized for the
purpose, or divided between different departments.
Great care should be taken to bring under the same
heading all items alike in character, however they may
be classified or designated in the accounts of the various
cities.'
5. It is not possible to devise any single form of classi-
fication which may be termed correct in the sense of be-
ing the best for all purposes. Some classifications are
best for some, others for other purposes. It would not
be possible for the census to present all desirable forms
of classification. It should, however, make so clear the
content of the terms in the classification adopted, and
present the facts in such detail that it will be possible
to re-classify them in any way necessary to tlirow light
on any question of municipal finance. In addition to its
main classification, it should present only such re-classi-
fications of its figures as will throw light upon certain
facts of fundamental importance and general interest,
and not involve an unreasonable expenditure of space
' Thus it is best to include under the heading franchise taxes all
payments of the nature of special taxes made by companies in the en-
joyment of public franchises, by whatever name such payments may
be known.
28
434 American Economic Association.
and money. Correct presentation of the facts in detail
in such a way as to make them available for any purpose
should be the main object of the census.
6. Passing from these general considerations to the
principles applicable to revenue as distinct from expen-
diture and vice versa, it is evident that the items of rev-
enue should be classified according to the sources from
which they are derived. We must distinguish between
revenue from regular and constant sources, and revenue
from sources necessarily irregular and limited, such as
loans, sales or gifts. In the case of revenue from regu-
lar sources, we should distinguish between revenue which
comes from the exercise of the taxing power, revenue
which is incidental to the administrative activity of the
city, and revenue which comes from the exercise of the
penal power, from productive property, from quasi-
private enterprises carried on by the city, or from pay-
ments to the city by other political and administrative
bodies. In the case of revenue derived from taxation
we should distinguish that which is assessed on citizens
generally according to some estimate of their financial
ability from that which is levied upon some particular
form of business or property, or that which is assessed
according to benefits received from some particular form
of expenditure, or on account of the expense involved
in some particular form of administrative oversight. It
would probably not be possible to conform the classifica-
tion of revenues strictly to the scheme required by the
principles of finance, even if there were general agree-
ment upon such a scheme among students of that science.
A census classification to be of practical value must take
into account facts of administrative and financial organi-
zation and practice, and the common usage of certain
terms in certain senses, as well as the principles of
Municipal Finance in the Twelfth Census. 435
finance. It is necessary to effect a compromise between
these two classes of considerations endeavoring always
to conform as closely as possible to scientific principles-
7. Expenditures should be classified according to the
purposes for which they are made. To do this to ad-
vantage it is necessary to follow concurrently two dis-
tinct principles of classification. According to the first,
the determining factor is the character of the public
need supplied, such as schools, streets or sewers. Ac-
cording to the second, the determining factor is the char-
acter of the expenditure as regularly recurring or special
and exceptional. While such a distinction as the latter
evidently exists and should be recognized, the exact line
between the two kinds of expenditure is largely a matter
of judgment and of the purpose in view. The terms
usuall5' emplo3'ed to express it are " ordinary " and " ex-
traordinary," but these terms, far from indicating the
principle of classification adopted, must themselves be
fully explained to serve any useful purpose. Without
going into the discussion as to what constitutes ordinary
and what extraordinary expenditure, a valuable and
practical line of division ma}- be drawn between expen-
ditures for operation and maintenance (including salaries,
wages, supplies and repairs) and expenditures for ad-
ditions (including purchase of land, and purchase or con-
struction of buildings and plants). Figures so classified
for a series of years would show the average annual ex-
penditures for additions and would thereby afford the most
satisfactory basis for determining what portion of ex-
penditures of this sort in any year is properly to be
classified as ordinary and what portion as extraordinary.
The Schedules of the Tenth and Eleventh Censuses. —
The tables of the tenth census dealing in detail with
receipts and expenditures of cities are tables IV B and
436 Americaji Economic Association.
IV C (7 : 234—261). The corresponding tables in the
eleventh census are tables 12 and 14 in Wealth, Debt
and Taxation, 2 : 554-557 and 560-599. The former
relates to cities with population of 50,000 and over ; the
latter to municipalities with a population of 4,000-50,000.
The tenth census was the first iu which an attempt
was made to show the receipts and expenditures of
cities. The figures are given in detail for each city
having a population of 7,500 or over.
From a careful comparison of these tables in the last
two censuses, it is evident that the census of 1890 made
a distinct advance over that of 1880. It shows the facts
in greater detail, particularly on the side of receipts,
and the grouping is better. The tenth census makes no
attempt to draw any distinction between ordinary and
extraordinary receipts, or to distinguish receipts which
belong to the city from receipts in the collection of
which the city acts only as agent. It does not even give
any figure showing total receipts exclusive of balance
from preceding year. In the eleventh census, on the
the other hand, the receipts from regular sources of rev-
enue and the expenditures for the work of city admin-
istration are grouped separately from transactions on ac-
count of debt, balances, and nominal items arising from
transfers between funds. ^
^Thus the only total given in the tenth census (7 : 240) for the re-
ceipts of New York in the table showing receipts in detail, is
$68,460,286
In this total are included the following items :
Cash balance from preceding year % 2,260,743
Proceeds of bonds sold 51223,752
Sinking fund 4,120,756
Temporary loans 24,857,587
136,462,838 36,462,838
Deducting this we have l3i,997,448
This figure, however, included taxes, to the amount probably of
Municipal Finance in the Twelfth Cefisus. 437
Notwithstanding the advance made by the census of
1890, it still leaves much to be desired.^
The first point for criticism is the lack of a satisfac-
tory explanatory text. In this respect indeed the
census of 1890 is inferior to that of 1880. A similar
fault is the lack of any precise definition of terms used.
Thus there is no explanation of the heading, " funds, in-
vestments, transfers and refunds," which occurs under
both receipts and expenditures in tables 12 and 14.^
about $4,000,000, collected for the state, deducting which would leave in
round numbers $28,000,000 as the real revenue of the city, the figure
needed for making comparisons with other cities in which the condi-
tions in regard to cash balance carried, debt payment, and the issue of
temporary loans in anticipation of revenue are different from those in
New York.
That the above items were not properl}' a part of the revenue of the
city may be seen from the statement of the following items taken
from the table of expenditures (7 : 236,) :
Principal of bonded debt $ 8,273,451
Temporary loans 25,744,342
Sinking fund 286,514
The balance at the end of the year is not
given, but assuming that it is the same as
at tlie beginning 2,260,743
The total would be 136,565,050
According to the scheme followed in the eleventh census we find in
the table of receipts two totals : " Gross receipts including balance ",
$101,854,775, ^"d " Ordinary", ,$35,740,547 ; and in the taVjle of ex-
penditures, "Gross expenditures including balance", $101,854,775 ;
" Ordinary ", $37,218,857, which last is believed to include a double
entry of about $3,500,000. (Wealth, Debt and Taxation 2 : 554-6.)
^The schedules of the eleventh census, although an improvement
on those of the tenth census, are inferior to the schedules approved
by the ninth Congris International de Statistique and used by Korosi
in his Bultetin annuel des finances des grandes villes, published tor
the years 1877-1 SS6.
'' 2 ; 554-57 and 560-99.
The terms, "funds," and "investments," particularly need expla-
nation. It is evidently not meant to include under these heads in-
come from funds and investments since this item is separately stated
under ordinary revenue. It would seem, therefore, that the terms are
meant to include receipts from sales of property belonging to funds
438 American Econojnic Association.
The same is true of the item " funds " which occurs in
the heading " income from funds and investments "
under receipts. It is not clear, e. g., whether the sinking
fund is included under this head. Still another instance
of the lack of exact information in regard to the mean-
ing of the terms used is afforded by the heading " bal-
ance on hand beginning (end) of year." A comparison
of the census figures with the reports of the financial
officers of certain cities shows that the balances given by
the former considerably exceed the balances in the
treasury reported by the latter. The explanation appar-
ently is that the census figures include not only the
balance in the treasury but the cash balance in the hands
of the sinking fund commissioners. Whether or no this
practice is advisable, it is unusual and should be indi-
cated, but neither the introductory text nor the foot-
notes, so far as the writer has been able to discover,
afford any hint of it.
Turning to the form of the schedules we find in the
case both of receipts and expenditures the greater part
of the items grouped under the general heading
"ordinary," preceding which are a number of items
grouped under no general heading but included with
" ordinary " receipts (expenditures) under " gross re-
ceipts (expenditures) including balance." These last
named items taken together exceed, in the case both of
receipts and expenditures, the ordinary receipts and ex-
penditures, but (as explained below) neither they as a
and constituting investments, but this is not stated nor is there any-
thing to indicate whether receipts from sales of securities only are
included or from sales of productive real estate as well. Nor, again,
is it stated whether receipts from sales are included when the proceeds
are reinvested and the fund or investment kept intact, the sale being
merely incident to a change in the form of investment and not result-
ing in any addition to the revenue for the year.
Municipal Finance in the Twelfth Census. 439
whole, nor the total which includes them, have any
significance whatever. The use of the term "ordinary"
implies the division of receipts and expenditures into
ordinary and extraordinary. Accepting this principle
of classification, it is clear that the items should be
grouped under the following general headings :
RECEIPTS. EXPENDITURES.
Balance at beginning of year. Total expenditures.
Total receipts during year. Ordinary.
Ordinary. Extraordinary.
Extraordinary. Balance at end of year.
Total of balance and receipts. Total of expenditures and balance.
Not onl)' does the census of 1890 give no figures
showing extraordinory receipts and expenditures other
than receipts frotn and expenditures for payment of
loans, but it does not show total receipts or expenditures
exclusive of balances at the beginning and end of the
year. The figures which it gives for " gross receipts
(expenditures) including balance " include, along with
these items and inextricably confused with them, a
mass of items, (such as taxes collected for state and
county in the case of receipts, transfers between ac-
counts and, apparently, moneys received and paid out
incident to a change in the investments of city funds ' )
which are no part of those receipts and expenditures for
purposes of city administration, which are what the census
should show. Even on the basis of the system of classi-
fication adopted by the census for items other than " or-
dinary," there is an inconsistency between the schedules
for receipts and expenditures, in that, while " collections
'There is of course no objection to giving the figures for these
items, but they should not be included in a total intended to show
municipal revenue and expenditure in any form.. Revenue from loans
and expenditure for payment of debt, however, form important parts
of municipal revenue and expenditure and should be included in any
total intended to show their gross amounts.
440 Ajnerican Economic Association.
for state or county " are separately stated under receipts,
the payments of these sums to the state or county are
not separately stated under expenditures, but are in-
cluded under some other heading, no indication being
given as to which/
In taking up the items grouped under ordinary receipts
and expenditures we shall consider receipts and expendi-
tures separately.
Receipts. — The main criticism to which the schedule
is open is that it lacks sufficient detail. All sorts of
quasi-private undertakings are grouped together under
the heading "waterworks or other undertakings." It
is, however, certainly both desirable and practicable to
give separately the figures for such undertakings as water
works, gas works, electric light works, conduits, etc."
Special assessments for sidewalks are of sufficient im-
portance to demand separate statement, and in the case
of assessments for streets it is desirable to distinguish
the main purposes for which assessments are levied,
such as cost of land, construction, and maintenance and
repair. There are licenses other than liquor licenses of
sufficient importance, especially in the south, to be sep-
arately stated. The schedule contains no separate
' Apparently Ihis item in the case of expenditures must be included
under "funds, investments, transfers and refunds." The only other
possible heading under which it could be included would be " miscel-
laneous," and in the case of many cities the sums entered under this
head are too small to cover taxes collected for state and county.
^ In justice to the census of 1890 it should be noted that this greater
detail was much less important then than it is at the present lime.
The objection is rather to the use of the same schedule for 1900. It
is not certain, indeed, that it would be wise to include such items as
gas works, electric light works, and conduits in the general schedules
for 1900 ; but if they should not occur with sufiBcient frequency to jus-
tify including them in the general schedule, the facts regarding them
should be fully stated in foot-notes where they do occur. If we do
not distinguish them from water works we destroy the possibility of
getting at figures for water works as well as other enterprises.
Municipal Finance in the Twelfth Censtis. 441
headings for franchise taxes or receipts from productive
real estate, both items of great interest, and in some
cases of considerable importance,^ and there is no indi-
cation of the headings under which these are included,
although it seems probable that thej' are distributed
among the headings, water works or other undertakings
(net), licenses other than liquor licenses, fees, fines, and
penalties, income from funds and investments, and mis-
cellaneous.
Not only are the figures for water works and other
undertakings given net, but the interest on bonds issued
on account of such undertakings is included in their
expenses.^ There can be no doubt that this procedure
is not only legitimate, but for certain purposes abso-
lutely necessary ; but it is equally certain that the
schedules which give the receipts and expenditures in
greatest detail should give all the items of revenue and
expenditure without regard to the fact that the city may
make a net profit or suffer a net loss in connection with
certain enterprises. These tables should furnish full
data, having which we can make the great variety of
combinations necessary to throw light on the various
phases of the problem of municipal finance and the
' The importance of these items in the case of New York may be
seen by the following figures taken from the Comptroller's report for
the census year (pp. 45, 55, 58) :
Payments by street and other railway co.'s._.. % 429,476
Market rents and fees 307,460
Ferry rent 330,345
Dock and slip rent 1,482,532
Street vaults ,. 138,794
House rent 56,838
Ground rent 49i385
^ See explanatory notes, lileventh Census. Wealth, Debt and Tax-
ation, 2 : 407.
442 American Eco7iomic Association.
relative financial condition of cities. This cannot be
done by giving merely net results.'
Expenditures. ~'X:\\^ use of the term " ordinary " is
much more open to criticism than in its use in connec-
tion with receipts. Under this head all expenditures are
included other than for " loans (principal) " and " funds,
investments, transfers and refunds ;" for example, all ex-
penditures for addition to equipment. If a city should
purchase an electric lighting plant, put in a system of
sewerage or build a city hall, the cost according to the
census classification would be included under ordinary
expenditures. The vagueness of the terms " ordinary "
and " extraordinary " in connection with expenditures
has already been noted, but it is certainly not in accord-
ance with any legitimate conception of the meaning of
those terms to include such items as the above.
In the case of cities with a population of 50,000 or
over it is possible to correct this fault so far as totals are
concerned, the expenditure for " new buildings, works,
sites, and grounds " being separately given, but it is
stated that it was impossible to preserve the distinction
in the case of cities with 4,000 but less than 50,000 in-
habitants," and such items are grouped with the " care
and repair of public buildings." Even for cities with
50,000 or more population expenditures of this class are
not distributed among the different departments in con-
nection with which they are made. In the same way,
'Further, the "net" results as calculated in the census do not
afford a satisfactory basis for estimating the real financial results
achieved by cities in managing such enterprises, since no account is
taken of depreciation. It was of course impossible to allow for such
an item as this in the schedules of receipts and expenditures, an im-
possibility which goes to show the unwisdom of trying to show net
results in such tables.
^ Idem, 2 : 407.
Municipal Finance in the Twelfth Census. 443
the item of " salaries separately reported " seems un-
necessarily large. Still another item open to criticism
is that " the amount of interest paid on bonds issued by
any city and held in the sinking fund is treated only as
a transfer between accounts, and the interest payment
correspondingly diminished." '
As a result of this practice, and that of including in
the expenses of water works and other undertakings in-
terest on the bonds issued in connection with such
undertakings and then giving ovAy the net results, it is
impossible to determine the total expenditure for interest
on bonded debt, a fact of considerable importance in
municipal finance. It is certainly most remarkable that
neither in the tables of receipts and expenditures nor in
the hundreds of pages devoted to the statistics of mimici-
pal indebtedness, is there a figure which shows the ex-
penditure for interest by a single city.
lyike the schedule of receipts, the schedule of expendi-
tures is open to the criticism that the classification is not
sufficiently detailed. It is not necessary to specif)' the
directions in which it might be advantageously expanded.
This will be evident from a comparison of the tables em-
ployed in the census with the schedules suggested in
appendix III.
Suggested schedules.— h.s already stated the schedules
in the appendices are intended as suggestions subject to
alteration in detail as the facts when collected may show
to be desirable. They are prepared, moreover, with
special reference to the larger cities. While preserving
the same general scheme it would probably prove advisa-
ble to omit much of the detail in the case of the smaller
cities.^ It is believed that the facts presented in accord-
' Ibid.
^ It is not claimed that the receipts and expenditures of all even of
^_j.^ American Economic Associatio7i.
ance with these schedules (I and II in appendix III)
would constitute a contribution of real value to the study
of municipal finance.
Schedules I a and II a give a recapitulation of the main
classes of receipts and expenditures in such a 'way as to
make allowance for items somewhat exceptional in char-
acter and to render possible comparisons on several dis-
tinct bases. Schedule III shows in their relation to each
other the main facts of revenue and expenditure. Sched-
ule IV shows revenue and expenditure for certain depart-
ments which yield considerable revenue, although the
obtaining of revenue is not the primary purpose for
which they are administered, or which are largely sup-
ported by special taxes, fees, etc.
Schedule V shows the receipts and expenditures of
the sinking funds. As, under the plan proposed, the
sinking fund accounts are not combined with those of
the general treasury, this separate presentation is neces-
sary. Schedule VI shows for total receipts and expend-
itures, the result of combining the sinking fund and
general treasury accounts.
It would be highly desirable to present the figures for
the receipts and expenditures of the larger cities for the
intercensal years. The detail involved, however, is so
much greater than in other branches that it is doubtful
whether such a presentation would be practicable.
No schedules are suggested for municipalities other
than cities. The reason of this is the desire to save
space. If the schedules suggested for cities were adopted,
the larger cities can be classified with the detail called for by the
schedules. This may be impossible for many cities. For the majority
of the larger cities the details can be given and the vakie of the tables
correspondingly increased. Further, the general scheme being the
same, the greater or less detail in the figures for different cities will
not destroy the basis of comparison between them.
Municipal Finance in the Twelfth Census. 445
it would be a comparatively easy matter to prepare
schedules for other municipalities which should be com-
parable and capable of combination with the former.
It will be noticed that the schedules proposed make
no provision for presenting the figures of revenue and
expenditure in a single schedule in which each depart-
ment of administration is charged with the expenditure
incurred and credited with the revenue received in con-
nection with it. This is done by some European and
American cities, and is recommended by some writers
who speak with authority.' In the opinion of the writer,
however, such a practice tends to confuse and mislead
rather than inform. The principles of classification for
revenue and for expenditure are radically different. Rev-
enue should be classified according to the source from
which it is received, expenditure according to the pur-
pose for which it is made. These two principles of
classification cannot be combined in a single schedule,
and any attempt to do so which results in anything else
than a mere repetition of the tables of revenue and ex-
penditures, is certain to lead in many instances to arbi-
trary and misleading classification of revenue or expen-
diture or both. The usual plan when such an attempt
is made is to use a composite schedule corresponding
more closely to the expenditure than to the revenue
schedule. In this, expenditures are classified in practi-
cally the same way as in the separate expenditure sched-
ule, but in the case of revenue what is regularly appro-
priated to meet the expenditure of any department of the
city government is credited to it regardless of the nature
of the relation which exists between the revenue so ap-
propriated and the department. The relation may exist
' See " Suggestions for the Study of Mimicipal Finance " by Fred.
R. Clow in Quarterly Journal of Economics, luly, 1896.
446 American Economic Association.
merely in tlie act of appropriation {e. g., the revenue
from dog licenses may be appropriated to school pur-
poses) or in the fact that the revenue is raised for the
special purpose of meeting the expense of a department
{e.g.., sewer assessments) or in the fact that the revenue
is the direct result of the work of the department {e.g..^
receipts from sale of water or gas). Revenue not regu-
larly appropriated to specific purposes is usually stated
separately according to the source from which it is de-
rived, the classification of the revenue schedule being to
this extent introduced into the composite schedule. The
results of such a schedule are apt to be as follows :
1. A great amount of repetition provided separate
schedules are also used.
2. Arbitrary and misleading classification of certain
revenues. Not only is revenue credited to departments
with which it has no real connection, but revenue from
like sources maj' be credited to different departments in
different cities, and even different portions of revenue
from the same source to different departments in the
same city, according to the chances of appropriation acts.
3. A considerable amount of valuable information in
regard to the relative revenue and expenditure of a num-
ber of departments which yield a revenue or are sup-
ported by special taxes levied for the department.
It is possible to give the information mentioned under
3 without combining with it the repetition and mislead-
ing classification mentioned under i and 2. Provision
for such a presentation is made in appendix III,,
schedule IV.
Another omission which may seem to many important,
is the failure to provide for a complete statement of mu-
nicipal assets and liabilities in connection with the fig-
ures for receipts and expenditures. It seems to the
Mu7iicipal Finance in the Twelfth Census. 4.4.^
writer, however, that when the statement of assets is
extended to property (^. ^., streets and sewers) which
yields no income, which is never bought or sold, and to
which, therefore, no market value can be assigned, the
estimates placed on such property are apt to be mislead-
ing and must necessarily be so arbitrary as to be of little
value. Provision for a statement of assets to which a
market value can be fairly assigned, and of liabilities, is
made in schedule II, appendix II, and there would seem
to be no need of repeating it in connection with the
schedules of receipts and expenditures.
The criticisms of the last census and the suggestions
made in this report have had reference to the methods of
classification adopted rather than to the accuracy of the
figures. There are two reasons for this : i. There is no
suggestion to make in regard to accuracy. It must be
attained if the work is to be of value. 2. One of the
most serious criticisms on the classification followed is
that it makes it impossible to determine whether the
figures are accurate. The writer has no reason to doubt
the substantial accuracy of the census figures although
some errors have come to his notice, e.g:, in the case of
Rhode Island, under the heading " Collections for state
and county separately reported," figures are given for
Providence (2 : 554,576) and for Bristol and Cumber-
land, but not for the other towns. All the towns, how-
ever, made such collections, and it would have been easy
to find the amount.
The attainment of accuracy is dependent on the ad-
ministration of the census work, suggestions in regard
to which do not fall within the scope of this report.
448 American Economic Association.
V.
FINAL CONSIDERATIONS.
There is a question which, while it does not, perhaps,
properly fall within the scope of this report, is so essen-
tial to a correct estimate of the importance of municipal
finance that it seems to demand consideration here. To
estimate aright the importance of municipal finance as
an element in the financial S5'Stem of the country as a
whole, we must study it not merely by itself but in con-
nection with the finances of the county, the state, and
the nation. Between the finances of the municipality,
the county, and the state, there is sufficient unity to
make advisable a statement showing their combined re-
sults, and it is of great importance that the schedule
employed for this purpose should be such as to show the
facts in their true relations to each other. Unfortunate-
ly the eleventh census is even more open to criticism in
regard to the manner in which this part of the work
was done than in its presentation of the facts of muni-
cipal finance separately.
The worst faults are to be found in the table showing
the combined results for receipts and expenditures.^
Bringing the summaries for receipts and expenditures
as presented in the table on page 449 into comparison
with each other we have the result there shown.
It is evident at a glance thlt the classification adopted
is confusing and misleading. The figures for receipts
and expenditures do not apply to the same bodies
throughout. Thus no expenditures are given for the
bodies for which receipts are given in column 6 and no
receipts are given for the bodies for which the expendi-
tures are given in columns 7 and 8. In other cases,
the figures for expenditure do not include the whole ex-
' Wealth, Debt and Taxation, 2 : 410-411.
Municipal Finance in the Twelfth Census.
449
OD
Additional
estimated for
places not
reported in
detail.
t^
School dis-
tricts or other
divisions in
charge of pub-
lic common
schools.
VO
Additional
estimated for
public com-
mon schools
and places not
reported
in detail.
lO
Municipali-
ties having
less than than
50,000 but 4,000
or more popu-
lation and
reported
in detail.
-^
Municipali-
ties having
50,000 or more
population
and reported
in detail.
CO
Ilk
5K.S
CI
M
w
o
w
A
w
M
O
IS
W
M
o
c-S o
fa? fi^ ^J
o
cfl
penditure made from the revenue with which the ex-
penditure is brought into comparison, the result being
a large apparent surplus. Thus in the states the figures
for receipts include some thirty-six million dollars col-
lected and paid over to minor divisions, but in the
figures for expenditures this item is omitted, being trans-
29
450 American Economic Association.
ferred to column 7. In the same way the figfures for
the receipts of municipalities with 50,000 population
and over include $30,942,042, and the figures for the re-
ceipts of municipalities with 4000-50,000, $10,853,822,
which is omitted in the figures for the expenditures for
the same municipalities, and is transferred to column 7.
Whether or not it is desirable to treat school finances
separately, the mixture of two principles of classification
in the same table can yield nothing but confusion. If
the expenditures for schools were to be treated sepa-
rately, the same principle should have been followed in
the case of receipts.
The same classification is followed in table 8\ which
shows " ordinary receipts and expenditures of states and
territories, counties, municipalities and school districts
by classification of sources and objects." Even aside
from the faults just pointed out, the table of which the
summary is given above is not satisfactory, since only
the absolute amounts of the receipts and expenditures
for each state, and not the per capita amounts, are given.
Thus comparing the receipts of the states, counties and
municipalities in Massachusetts and Indiana, we have
the following figures :
Massachusetts. _
state.
County.
^1,644,402
Municipalities
having 50,000
or more pop-
ulation.
118,978,020
Municipalities
having less
than 50,000 but
4,000 or more
population.
^12,914,367
Indiana
3,360,876
7,505,318
1,127,983
1,436,717
Since the county organization includes the whole
population in each state, the table shows clearly that
people in Indiana pay on the average for their county
government as compared with their state government
about fifteen times as much as the people of Massachu-
setts. Comparing the receipts of the state and munici-
'^ Idem, 420-451.
R'hiniccpal Finance in the Twelfth Census. 45 r
palities in the two states, we find that in Massachusetts
the receipts of the municipalities are about three and
one-third times as great as the receipts of state, while in
Indiana the receipts of the state are about one and one-
third times as great as the receipts of municipalities.
These figures, however, throw no light whatever on the
important question, Do the dwellers in cities in Massa-
chusetts pay more or less than the dwellers in the cities
in Indiana for their city government as compared with
their state government? The relatively large receipts
of municipalities in Massachusetts may indicate that
they do but, on the other hand, it may indicate simply
that a much larger portion of the population of Massa-
chusetts live in cities than is the case in Indiana. The
census figures give us no help in determining which of
these conditions is the true explanation of the great
difference in the relative importance of state and munici-
pal revenue in the two states. The same is true of table
5,^ which gives the total ad valorem taxation for the
state, counties and municipalities in each state, and of
the table^ which gives a summary of state, county and
municipal indebtedness by states. The only way of
overcoming the difficulty stated is to give for each
group of administrative divisions the population in-
cluded within the group and the per capita as well as
the absolute amount of valuation, taxation, receipts, ex-
penditures and indebtedness.
The nearest approach in the census to a satisfactory
presentation of figures for the different sorts of admin-
istrative bodies in a single table is made in the table
showing " the national, state, and classes of the local
bonded debt of the United States, and the amount, aver-
■ Idem, 2 : 102.
'Idem, I : 77-78.
452 American Economic Association.
age interest rate, and per capita interest charged there-
on for 1890." '
Aside from the changes in the classification of mu-
nicipalities suggested in this report, the grouping of the
different political and administrative divisions in this
table would be entirely satisfactory, if there were intro-
duced before the first column two columns showing res-
pectively the population of each group of administra-
tive bodies and the percentage of the total population
of the state included within the area of each. The
same principle should, of course, be applied to all tables
in which the figures for different administrative divis-
ions are combined.
A final question remains : the question whether it is
advisable to extend or even to retain the statistics of
state and local finance, as a part of the census work.
Since the tables proposed in the appendices to this re-
port are more detailed than the corresponding tables
used in the eleventh census, it will appear at first sight
that the substitution of the proposed schedules will in-
volve a considerable increase of space. The increase
due to this change might, however, be largely if not
wholly offset by the omission of much matter of small
value published in the finance statistics of the last cen-
sus.''' As regards the advisability of continuing the
work even though no considerable increase of cost and
space be required, there is general agreement among
those who have given attention to the subject that the
last two censuses have attempted to cover too wide a
field, and that while it is possible that certain branches
of census work may be profitably extended, other
^ Idem, I : 857.
' It must be remembered that it is proposed to treat in greater detail
only the larger cities, and even to group the smaller places, the figures
for which occupy the greater part of the space in the last census.
Municipal Finance in the Twelfth Census. 453
branches should be greatly curtailed, or entirely cut off.
It is further felt that it would be a distinct gain if the
net result of these changes were a marked decrease in
the bulk of the census. Although there are good grounds
for these views, yet unless provision is made for carry-
ing on the work in some better way it hardly seems
advisable for the census even though its organization re-
main unchanged,' to drop a portion of its work which
deals with a matter of great and increasing importance,
which has been carried on by two previous censuses,
and which, although open to serious criticism, has
yielded results of much value, and is susceptible of very
great improvement. Such provision for a portion of the
work seems probable. By an act passed at a recent
session of Congress the Department of L,abor is author-
ized to publish annually, as a part of its Bulletin,
the statistics of cities with a population of 30,000 or
over. The Department of Dabor is better fitted than
the census will probably be to do this work efhciently,
and if it undertakes the presentation of finance statistics
of the larger cities, the census should certainly not attempt
to duplicate its work. Unless, however, the work of
the Department of Labor is extended beyond the limits
above defined, it will still remain for the census to pre-
sent the statistics of the finances of states, counties, the
smaller municipalities and the special districts, as well as
the statistics of state and local finance as a whole. This
is essential for the understanding not merely of public
finance in this countrj^ but of municipal finance itself,
since existing conditions and changes in the latter can-
' This point should be emphasized. There is nothing in the charac-
ter of the statistics of public finance which prevents their successful
treatment by the census.
454 American Economic Association.
not be intelligently interpreted without a knowledge of
the accompanying conditions and changes in the finances
of other political and administrative bodies of which the
municipality forms a part.
Henry B. Gardner.
Brown University.
APPENDIX I.'
SUMMARY.
Population.
Valuation and ad valorem taxation.
Assessed valuation — real estate ; personal property ; total ; per
capita.
*True valuation of real estate — taxed ; exempt ; total ; per capita.
Ad valorem taxation — total ; per capita ; rate per f loo of assessed
valuation ; rate per f loo of real estate (true valuation).
Debt.
Bonded; floating; total; net (total less sinking fund). Per cent
of assessed valuation — a. gross debt ; b. net debt. *Per cent of true
valuation of real estate — a. gross debt ; b. net debt.
Receipts and expenditures.
Receipts, *from ordinary sources — a. total ; b. per capita ; from all
sources (including, however, only excess of receipts from loans and
sinking funds over expenditures for same purposes) — a. total ; b. per
capita.
Expenditures, for operation and maintenance (1900) — a. total; b.
per capita; for additions to real estate and equipment (1900) — a.
total ; b. per capita ; for interest on debt — a. bonded (1880, 1900) ; b.
floating (1900) ; c. total (1900) ; for all purposes (including, how-
ever, only excess of payments on account of principal of debt and
sinking funds over receipts from same sources) — a. total ; b. per capita.
APPENDIX 11.^
SCHEDULE I. — DEBT MOVEMENT 189O-I9OO.
At beginning of year.
Gross bonded debt; sinking fund; net bonded debt, i.e., gross
bonded debt less sinking fund ; gross floating debt ; cash in treasury ;
net floating debt, i.e., gross floating debt less cash in treasury ; total
gross debt, bonded and floating ; total net debt, bonded and floating.
1 when not otherwise specified, figures should be given for each of the j-ears
1880, i8go and 1900. An asterisk indicates that it would probably be impossible to
give the figures for 1880. There should be four columns, one for the amount and
three for the per cent of increase. 1880-1890, rSgo-igoo and 1880-1900 respectively.
2 The figures for the following items should be given for each of the intercensal
years, 1890-1900 inclusive.
456 American Economic Association.
During year.
Bonds issued — a. in anticipation of current revenue ; b. other ;
bonds paid or purchased — a. bonds issued in anticipation of current
revenue ; b. other ; floating debt incurred ; floating debt paid.
SCHEDULE II. — DETAIIvED STATEMENT OP DEBT AND ASSETS.
Debt.
Bonded ; floating ; total.
Productive and available assets.
1. Cash in treasury.
2. Productive assets, a. Sinking funds — cash ; bonds of the city
itself ; bonds of other cities ; bonds of the United States ; bonds of
states ; bonds of other public bodies ; other securities, b. Other
funds — securities ; real estate ; other property, c. Quasi-private en-
terprises — real estate ; plant ; other assets, d. Other productive prop-
erty — securities ; real estate ; other.
3. Available but non-productive assets — a. real estate ; b. other.
4. Total productive and available assets.
Comparison between debt and assets.
1. Bonded debt less sinking funds — amount; per capita.
2. Bonded debt less productive and available assets — amount ; per
capita.
3. Bonded and floating debt less sinking funds and cash in treas-
ury — amount ; per capita.
4. Bonded and floating debt less productive and available assets —
amount ; per capita.
5. Interest on bonded debt.
6. Income from productive assets (net').
7. Proportion of net income from productive assets to interest on
bonded debt — per cent.
8. Proportion of net income from productive assets (other than
sinking funds) to interest on bonded debt — per cent.
APPENDIX III.
SCHEDDI^E I. — SOURCES OlP REVENUE.
Explanatory note.
As already stated, the purpose of this schedule is to suggest an ap-
proximately satisfactory scheme for the classification of revenues. It
1 Gross income less expenditures for operation, care and maintenance, sinking
fund charges and allowance for depreciation.
Municipal Finance in the Twelfth Census. 457
is intended to show the main classes into which reveniies may be ad-
vantageously divided and the character of the items which should be
grouped under each class. If the attempt were made to vise the sched-
ule for census work it would doubtless prove advantageous to con-
dense it, perhaps by one-half. Many items might be found to occur
so infrequently that it would be advisable to treat them in foot-notes
rather than to include them in the general schedule. It is believed,
however, that the schedule contains no items for which it would not
be well -to give the figures separately (either in the schedule itself or
in foot-notes) when the items occur and a separate statement is possi-
ble. Indeed, a complete examination of city finances would doubt-
less disclose many items not included in this schedule for which a
separate statement would be desirable. Just the points at which, and
the extent to which, the schedule could be advantageously condensed
can be determined only by experience.
It is intended that in its main features it should be as near an ap-
proach to scientific requirements as it is practicable to make. Class
V would probable be most open to criticism on scientific grounds.
Many items included in this class should doubtless, in accordance
with scientific principles, be classed as fees, since the character of a
payment as a fee is, by those who speak with most authority on the
subject, made to depend not so much on the character of the service
as on the relation between the cost of the service and the amount paid
for it. This method of determining whether or not a payment is a fee
would be very difficult to follow in census work, and it has seemed best,
therefore, to apply the term fee to payments for services rendered or in
accordance with conditions imposed, in which the element of compul-
.sion by the city over the individual is strong. Payments for those
services or goods which the individual is, in theory at least, free to
accept or decline are included in Class V. This principle of classifica-
tion, while not entirely free from ambiguity, is relatively easy to
apply.
The significance and application of the separate statement of sums
paid by other political and administrative bodies, and of sums paid by
one branch of the city administration for services rendered by other
branches, may be seen by reference to Schedule I a. In the case of
the former the figures have a direct bearing on the figures of the
schedule in which the facts are given for the states, counties and
minor divisions together.
Schedule.
There should be separate columns showing the actual and per capita revenue
and the per cent that each item of revenue is of the reveime from the next higher
or more general class. For this purpose the main divisions I-VIII are treated
as direct sub-divisions of IX and main divisions IX, X, XI, XII, XIII. XIV, XV,
direct subdivisions of XVI.
458 American Economic Association.
Balance on hand at beginning of year.
Revenue from :
I. Taxation.
I. General property tax ; 2. taxes on special forms of properly ; 3.
poll taxes ; 4. taxes on trades and occupations (exclusive of taxes on
companies in possession of public franchises) ; a. liquor trade ; b. to-
bacco trade ; c. other trades ; d. occupations other than trades. 5.
franchise taxes — a. street railway companies ; b. ferry companies ; c.
water companies ; d. gas companies ; e. electric light and power com-
panies ; f. telephone companies ; g. other companies. 6. fees — a.
court fees ; police courts ; other courts ; b. other fees such as those
from inspection of buildings, boilers, plumbing, etc. 7. special assess-
ments — a. streets ; acqvrisition of land ; opening and building ; main-
taining and repairing ; b. sidewalks and curbing ; c. sewers ; d.
bridges ; e. other. 8. other taxes.
II. Penalties.
I. Fines and penalties assessed by courts — a. police courts ; b. other
courts. 2. Other penalties.
III. Rents.
I. Docks and wharves; 2. ferries; 3. markets; 4. conduits; 5.
other improved real estate ; 6. unimproved real estate.
IV. Investynents otlier than real estate (exclusive of sinking funds) .
I. School funds ; 2. other funds.
V. Services rendered and goods sold by city.^
I. Penal institutions — a. prisons and jails (from industries carried
on by inmates ; from other political and administrative bodies), and
similarly for workhouses, reformatories, and other institutions. 2.
institutions for the care of the needy and dependent classes — a. hos-
pitals (from other political and administrative bodies) ; b. asylums ;
(from other political and administrative bodies) ; c. lodging houses ;
d. wood yards, stone yards, etc. ; from city itself ; e. laundries ; from
city itself ; f. other institutions. 3. parks ; 4. cemeteries ; 5. quasi-
private enterprises — a. water, (from city itself) ; b. gas, (from city
itself) ; c. electric light and power, (from city itself) ; d. conduits,
(from city itself) ; e. ferries ; f. docks and wharves ; g. printing,
(from city itself) ; 6. other.
VI. Interest.
I. Deposits; 2. other.
VII. Grants from oilier political and administrative bodies (exclu-
sive of payments for services rendered and goods furnished by city).
I. From state ; for schools; for other purposes; 2. from county;
for schools ; for other purposes ; 3. from other bodies ; for schools ;
for other purposes.
' Items in parenthesis should be separately stated, but do not form a complete
subdivision.
Municipal Finance in the Twelfth Census. 459
VIII. Other revenue not of an extraordinary character.
IX. TOTAI, REVENUE FROM ORDINARY' SOURCES.
X. Sales (other than those included under previous headings),
I. Real estate ; 2. other.
XI. Donations (exclusive of grants included under VI).
XII. Other revenue not included in VIII, XIV, or XV.
XIII. TOTAI, REVENUE FROM SOURCES OTHER THAN I,OANS AND
WITHDRAWAl^S FROM SINKING FUNDS.
XIV. Loans.
I. Sales of bonds including premiums and interest received ; 2.
other.
XV. Transfers from sinking fund.
XVI. TOTAI, REVENUE FROM AI,I, SOURCES.
XVII. ToTAl, RESOURCES (total revenue plus balance at beginning of
year).
SCHEDULE I a.
(Both actual and per capita figures should be given. )
A. RESTATEMENTS OF REVENUE FROM ORDINARY SOURCES.
I. Revenue from ordinary sources (IX above).
II. Revenvie as in I, less revenue received from other political and
administrative bodies.
III. Revenue as in II, less refunds (Schedule II, Class IX).
IV. Revenue as in III, less revenue from quasi-private enterprises due
to payments by the city itself for services rendered by such
enterprises.
V. Revenue as in IV, less other revenue from quasi-private enter-
prises.
B. NET RE^'ENUE FROM LOANS AND TRANSFERS FROM SINKING
FUNDS.
Excess of revenue from loans and transfers from sinking funds over
debt paid and transfers to sinking funds.
1 The term " ordiuary " is employed here not iu any scientific sense, but solely
■with reference to actual conditions in the different cities referred to. " Ordi-
nary " revenue is revenue from sources which may be regarded as regular or per-
manent.
460 American Economic Association.
SCHEDUI^E II. — EXPENDITURES.
Explanatory note.
The statements made in the first half of the explanatory note in con-
nection with Schedule I apply mutatis mutandis to Schedule II. In
practice it would probably prove advisable to condense the schedule,
possibly combining certain items' and placing in foot-notes certain
others of infrequent occurrence.
The term " unclassified " as here used is intended to include expen-
ditures for two or more of the purposes, in the same general class with
the unclassified expenditures, which expenditures, being of siich a
character that it is impossible to distribute them, cannot be assigned
to the purposes in question. Thus if a commissioner of public works
has charge of streets, sewers, bridges and water-works, his salary and
general office expenses should properly be distributed among the ex-
penditures for the purposes mentioned. This, however, being impos-
sible the amount is entered in the proper general class of expendittires
as " unclassified," the figures following indicating the divisions with-
in the class among which the unclassified expenditure would be dis-
tributed if possible.
The use of the terms " operation and maintenance " and " additions
to real estate and equipment" is explained on page 435 of this vol-
ume.
Sciiedule.
PURPOSES OF EXPENDITURE.
There should be separate columns showing i. Expenditures for
operation and maintenance ; 2. expenditures for additions to real
estate and equipment ; 3. total expenditures. Columns i and 3 should
be subdivided so as to show actual and per capita amounts and the
per cent which each item constitutes of the item of which it is a direct
subdivision. In column i, main classes I, II, etc., should be treated
as subdivisions of the total for that column, and this total as a sub-
division of the total for XII in column 3. In column 3, main classes
I-XI should be treated as subdivisions of XII and main classes XII-
XIV as subdivisions of XV.
I. General government.
I. General executive officers — mayor; other; 2. legislative (city
council, clerk, etc.) ; 3. elections (including boards of canvassers and
elections) ; 4. buildings (exclusive of those belonging to departments
specified below) ; 5. unclassified (i, 2, 3, 4) ; 6. other purposes in
class I.
lit is believed, however, that there are few items which should not be separate-
ly stated either in the schedule or in foot-notes when they occur.
Municipal Finayice in the Twelfth Census. 461
II. Financial systein.
I. Treasurer; 2. auditor (comptroller); 3. assessment of taxes
(boards of assessment, equalization, etc.) ; 4. collection of taxes; 5.
management of debt and sinking fund ; 6. vmclassified ; 7, other pur-
poses in class II.
III. Security o/pei-son and property , and enforcement of law.
Parentheses indicate that the items enclosed should be specified when they
occur.
I. Police department ; 2. fire department ; 3. inspection of build-
ings ; 4. inspection of boilers ; 5. law department ; 6. courts : police
court ; other courts ; 7. penal and reformatory institutions — prisons
and jails, industries carried on by inmates ; workhouse, (industries car-
ried on by inmates) ; reformatories, (industries carried on by in-
mates) ; other institutions ; unclassified ; 8. unclassified ; 9. other pur-
poses in class III.
IV. Well being and convenience (other than education and allied
purposes ) .
I. Health — a. general expenses of health department ; b. inspection
of food ; c. inspection of plumbing ; d. removal and disposal of gar-
bage ; 2. sewers; 3. means of communication — a. streets (other than
street cleaning) ; b, street cleaning; c. bridges; d. rivers and har-
bors; e. docks and wharves; f. ferries; 4. light and power — gas,'
electric^, other' ; 5. water' ; 6. markets ; 7. conduits ; 8. parks, rec-
reation grounds and piers ; g. public baths and comfort stations ; 10.
regulation of certain kinds of traffic — a. liquor trafiic ; b. other; 11.
employment bureau ; 12. unclassified ; 13. other purposes in class IV.
V. Education and allied purposes.
I. Schools — 2. libraries and reading rooms; 3. museums and art
galleries ; 4. monuments ; 5. historical documents ; 6. celebrations,
music, etc. ; 7. unclassified ; 8. other purposes in class V.
VI. Needy and dependent classes.
I. Hospitals; 2. asylums; 3. almshouses; 4. wood-yards, stone-
yards, etc. ; 5. laundries ; 6. lodging houses ; 7. out relief ; 8. un-
classified ; 9. other purposes in class VI.
VII. Interest.
I. Bonded debt ; 2. floating debt.
VIII. Additions to funds (other than sinking funds) and productive
property (other than that included under IV, 3-7).
IX. Refunds.
X. Unclassified.
XI. Other purposes (except payment of debt and transfers to sink-
irig funds ) .
1 when the expenditures for these purposes are expenditures for enterprises
owned and managed by the city, the fact should be indicated by printing the fig-
ures in italics.
462 American Economic Association.
XII. TOTAI, OF CLASSES I-XI.
XIII. Payment {including purchase) of debt.
I. Bonded debt (including premium on bonds purchased) ; 2. float-
ing debt.
XIV. Payments to sinking fund.
XV. TOTAI, EXPENDITURES FOR AIo-6$.
Education, statistics, 74-77 ; sched-
ule of expenditures for, 461 ; pri-
vate and public schools, 497.
Electric plants, omitted in census of
wealth, 377.
Elliott, E. B., on accuracy of death
rates, 125 ; life tables of, 1 60-1 61.
Emigration from U. S., 18-21.
Employed, number of, 91, 92.
Employees in manufactures, 348-350,
354, 355. 361-363-
England, jealousy regarding manu-
factures in American Colonies, 328.
Enumerators, work of, 478 ; immber
for twelfth census, 481 ; should not
serve in district from which ap-
pointed, 497 ; expert supervision,
efficiency, and remuneration of,
498.
Epidemics, and death rates, 127.
Expectation of life, 154, 155.
Expenditures, of government, 405-
409 ; of cities, 429-448 ; classifica-
tion of, in city finance, 435 ; sched-
ules, 455, 460-465.
Express business, statistics of, 247.
Factory, and trades products, 269-
275 ; definition suggested, 273 ; sys-
tem, in statistics of industries, 310.
Falkner, R. P., Statistics of Critne
in the U. S., 170-183. Prices of
manufactures since i860, 267.
Families, Dwellings and, 60-65.
Family, as a unit for social statistics,
227-228.
Farm and Home Proprietorship and
Real Estate Mortgage Indebted-
ness, by David Kinley, 219-245.
Farms and Homes, possibilities of
investigating, 383 ; acres in groups
of farms, 497. See also Agriculture.
Farm animals, fuller statistics desira-
^ ble, 495.
P'arm implements, 497.
Farm values, desirability of in dollars,
496.
Fai-r, Wm., on registration of births,
129 ; on death rate in England,
137, 149, 165.
Index.
513
Farren, E., on death rate in England,
162.
Feeble-minded, classification of, 184,
195-
Female labor in gainful occupations,
100, lOI.
Fertilizers, in census of agriculture,
211.
Fisher, Irving, Mortality Statistics
in the U. S. Census, 121-169.
Fisheries, and fish commission, 4 ;
classification of, 86, 107, 499.
Ford, W. C, Statistics of Manufact-
ures ill Cities, 328-342.
Foreign born population in U. S., 17,
18 ; in American cities, 22, 25 ; in
indiistrial population, 97 ; in cer-
tain occupations, 98-101 ; census
qviestions regarding, 497.
Forests, data for, 497, 498.
France, and manufactures in Ameri-
can colonies, 328 ; census reports
on manufacturing industries, 341.
Franchises, omission of in census of
wealth, 377.
Freight traffic, statistics, 253.
Friendly societies, classification of in
census, 202.
"Funds" in municipal finance, 431,
437 note.
Furniture, valuation of, 386.
Gardner, H. B., Suggestions in Re-
gard to the Statistics of Municipal
Finance in the Census of igoo,
415-465-
Garfield, J. A., Census schedules of
manufactures in 1870, 345.
Gas plants omitted from census enu-
meration of wealth, 377.
Gold, estimates of volume in XJ. S.,
133-
Gompertz, — law of human mortality,
164.
Government property in census, 378.
Government receipts and expendi-
tures, 405-409 ; services, fuller re-
turns needed, 503.
Gravmt, John, life tables, 158.
Hadley, A. T., on public wealth, 374.
Halley, Edmund, connection of with
origin of life tables, 158, 165.
Hamilton, A., first census of manu-
factures, 328.
Hand trades and factory industry,
269-275 ; in census of industries,
309 ; increase shown in census of
1890. 359-360-
Health, schedule of city expenditures
for, 461.
33
Hollerith, H., tabulating system of,
491.
Hoffman, F. L., monograph on Amer-
ican negro, 39 ; on vital statistics
of negro, 45, 47, 140 ; Notes on
Scope and Method of Twelfth Cen-
sus, 501-503.
Holmes, G. K., Age, Sex, Dwell-
ings, Families and Urban Popula-
tion, 54-67.
Humphreys, N. A., on increased life
in England, 156.
Hunt, W. C, Scope and Method of
Twelfth Census, 466-494.
H3'de, John, size of farms, 212.
Illiteracy and Educational Statistics,
by D. R. Dewey, 68-77.
Immigration, and illiteracy, 71 ; con-
tribution to industrial population,
g7-ioc.
Indebtedness, of cities, 425-428 ;
farm, see Farm and Home Propri-
etorship, etc.
Indians, importance in census, 38, 46.
Indians, The Census and the North
American, by Franz Boas, 49-53.
Indian reservations, in census of
wealth, 389.
Industrial classes, index to progress
of, 231.
Insane, classification of in census,
184, 195-
Insurance, risks, 162 ; statistics in
census, 501.
Interest rates, census method of de-
termining, 234.
International Institute of Statistics,
on correction of death rates, 147.
International Statistical Congress,
neglect of statistics of pauperism,
188.
Interstate Commerce Commission and
transportation statistics, see Trans-
portation, Statistics of.
Investments, in city finance, 437, note.
Iron and Steel industry, 304 ; pro-
duct, 311 ; costof manufacture, 314.
Irrigation, 4.
Jeans, J. S., on advance in wages,
357, note.
Johnson, E. R., Statistics of Trans-
portation, 246-256.
Jones, C. N., Life insurance in tropics,
163.
King, W. A, vital statistics of census,
III, 112, 128.
Kinley, David, Farm and Home
Proprietorship, and Real Estate
Mortgage Indebtedness, 219-245.
514
American Economic Associaiio?i.
Koch, Dr. ^, correction of crude
death rates, 147.
Korosi, Josef, on correction of crude
death rates, 146.
Labor, constancy of employment, 367.
Labor cost, in manufactures, 280-283,
314-
"Laborers" in census, 90, 102.
Land, ownership of by corporations,
497- . . , .
Liabihties, in municipal finance, 446.
Lexis, W. , Law of chance in mortality,
164.
Life tables, 157-165.
Life times, average, 148-157.
Lindsay, S. M., Pauperism and Be-
nevolence, 184-203.
Live stock, 209.
Loan associations, and ownership, 232.
Long Island, census figures of area, 9.
Lord, J. S., mortgages in Illinois, 219.
Machinery in agriculture, 205, 209.
Manufactures, census use of term, 87 ;
data of capacity of factories, 497 ;
classification of, 499.
Manufactures in tlie Federal Census,
by S. N. D. North, 257-302.
Manufactures, Report of Eleventh
Census on, by W. M. Steuart, 303-
327-
Manufactures in Cities, Statistics of,
by W. C. Ford, 328-342.
Marriage, age limits, 33 ; in early
life, 34-36 ; conditions affecting, 33-
37 ; of whites with negroes, 44.
Mayo-Smith, R,, Statistics of Occupa-
tions, 78-107.
Meat, slaughtering and packing, re-
lation of gross and net values illus-
trated by, 278, note, 319.
Meech, life tables for U. S., 159-161,
165.
Mechanical industries in census, 87.
Metropolitan Life Ins. Co., statistics
of mortality among poor, 139.
Migration, interstate, 25.
Mineral industries, statistics by Geo-
logical Survey, 4 ; classification in
census, 86, 102, 107 ; suggestion of
omission in census, 501.
Mines and quarries, value of, 3S4 ;
data of capacity, 497.
Money, in hands of individuals, 497.
Morrison, W. D., on criminal statis-
tics, 181, note.
Mortality Statistics of the Eleventh
Census, by C. L. Wilbur, 108-120.
Mortality Statistics in the U. S. Cen-
sus, by Irving Fisher, 121-169.
Mortality statistics, suggestions, 498,.
502, 503.
Mortgage indebtedness, in relation
to size of farms, 215 ; Farm and
Home Prop7-ietorship and Real Es-
tate Mortgage Indebtedness, 219-
245-
Mulhall, M. G., error of, in use of
census wage statistics, 356, note.
Municipal Finance, Suggestions in
Regard to Statistics of, in Census
of /goo, by H. B. Gardner, 415-
465-
Municipal Statistics, collection of,
from ofiicial sources, 497.
Municipal ownership, desirability of
data, 496.
Myrick, H., Agriculture in the Cen-
sus, 500.
Nationality and race, in populatioui
of U. S. , 18 ; in illiteracy, statistics,
70 ; ill educational statistics, 75 ;
relation to occupation, 81, 98.
Negroes, tendency to early marriage,
34> 35 ; Colored Population of
African Descent, 38-48 ; illiteracy
of, 71 ; mortality, 139, 140 ; special
census of, 499.
Nineteenth Century, comparative
statement for, 496.
North, S. N. D., Manufactures in
the Federal Census, ■2^']-}f>i ; cen-
sus, wage statistics in 1880-1890,
356, note.
North Adams, size of families in, 228.
Occupations, Statistics of, by R..
Mayo-Smith, 78-107.
Occupations, new classification of,
499 ; fuller returns desirable, 502 ;
relation to mortality statistics, 503..
Ogle, Dr. W., on correction of crude
death rates, 147.
"Ordinary" receipts and expendi-
tures in cities, 438, 439, note.
Out-door relief, in New York, 190 ;
treatment in census, 194, 196.
Ownership, and industrial classifica-
tion, 231 ; and density of popula-
tion, 232 ; and loan associations,
232.
Pauperism and Benevolence, by S.
M. Lindsay, 184-203.
Pearson, Karl, chance in mortality
statistics, 164.
Penal institutions as source of city
revenue, schedule, 458.
Permanent census bureau, desirabil-
ity of, 4, 244, 301, 308. See also
Index.
515
art. , Scope and Method of the Fed-
eral Census.
Personal property, taxation of, 402.
Personal service, 87.
Plehn, C. C, Wealth, Debt and Tax-
ation, 369-414.
Population, Area, Population, etc.,
8-37 ; of minor administrative di-
visions, 483 ; census returns of, and
local taxation, 484 ; more frequent
counts, 495 ; relation to occupa-
tions, 498 ; publication of volumes
on, 501 ; fuller statistics for cities,
501.
Porter, R. P., classification of de-
fectives, and dependents, 195 ; sta-
tistics of capital in manufactures,
286 ; organization of Eleventh Cen-
sus, 474-477-
Price, contribution to life tables, 158,
165.
Prices of manufactures in 1870, 266,
267.
Prisoners, number of in relation to
crime, 179-181.
' ' Product ' ' in census of manufac-
tures, 317.
Profit on capital in manufactures,
280, 284, 297.
Professional men, death rate of, 142.
Professional service, in census, 87.
Property, assessed valuation, 397-404.
Prosperity, national, of what it con-
sists, 373.
Race mixture, between whites and
negroes, 44 ; between Indians and
whites or negroes, 51-53.
Race, in statistics of illiteracy, 70, 71 ;
relation to occupation statistics, 81 ;
relation to morLality statistics, 139,
140.
Railroads, valuation of, 385, 397 ; sta-
tistics of, see Transportation Sta-
tistics.
Real estate, census definition, 379 ;
valuation of, 379-3S3 ; taxation of,
402 ; distribution of ownership, 495.
Real estate mortgages, 4, 236-244.
Registration, areas, 110-113, 136; and
census enumeration, 124-131.
Reilly, F. W., on deaths from con-
sumption in Chicago, 116.
Revenues, and expenditiures of
national and local governments,
405-409 ; in municipal finance, clas-
sification, 433 ; census treatment of,
440-441 ; summary, 455 ; schedules,
458-465-
Ripley, W. Z., Colored Population of
African Descent, 38-48.
Robinson, J. A., on "Chicago as a
health resort, " 116.
Sanborn, F. B., pauperism and the
census, 194.
Schools, statistics of, 4 ; private and
public, 497. See also Educational
Statistics.
School system, treatment in statistics
of municipal finance, 421, note.
Scope and Method of the Federal
Census, by W. C. Hunt, 466-494.
Scope and Method of the Twelfth
Census, notes by F. L. Hoffman,
501-503.
Seaton, Supt. C. W., death of, 468.
Sex, in census classification, 58-60 ;
relation to occupation, 81, 92-94 ;
relation to longevity, 154.
Seligman, E. R. A., statistics of val-
uation and assessment, 404.
"Significant" figures in statistics,
132-135-
Sinking funds, in municipal finance,
432, 464, 465.
Societies, statistics of, 496.
States, annual statistics of, 497.
Still births, 141.
Social classes, progress shown by
ownership statistics, 231.
Stone, N. I., Agriculture, 204-218.
Street railway statistics, 249.
Standard of value, effect on statistics
of manufactures, 265-269.
Stockton-Hough, J., on births, deaths
and marriages in Philadelphia, 152
note.
Steuart, W. M. , industries in census of
manufactures, 269 ; average wages,
299.
Report of Eleventh Census on
Manufactures, 303-327.
Supervisors in Twelfth Census, 479-
481, 497.
Tabulation, improved method m
Eleventh Census, 490.
Taxation, valuation and, 369-414 ; in
municipal finance, 429, 455, 459 ;
statistics of, according to race, 502.
Taxes, in expenses of jnanufactures,
337-
Tenancy and sales, 233.
Tenement house, defined in census,
II ; in English census, 64.
Transportation, investigation of, 4 ;
use of term in census, 87 ; Statis-
tics of, 246-256.
Trade, census use of term, 87.
5i6
American Economic Association.
Urban Population. 65-67.
Ulpian, life tables of, 157.
Uruguay, immigration and emigra-
tion, 21.
Valuation, and taxation, census sta-
tistics, 429 ; summary for muni-
cipal finance, 455 ; according to
race, 502.
Valuation and Taxation, by C. C.
Plehn, 369-414.
Values, measurement of in manu-
factures, 265-269 ; gross, net and
actual, 275-279, 319 ; defective an-
alysis and misleading percentages,
279-283 ; of manufacturing estab-
lishments, 293 ; as a unit of meas-
urement in manufactures, 319.
Venn, Dr., graphical representation
of changes in condition of laborers,
368.
Virginia, uncertainty of boundary, 8.
Vital statistics, of negroes, 45 ; rela-
tion to statistics of occupation, 81 ;
publication of volumes on, 501.
Wages, of railway employees, 253 ;
in relation to values of manufac-
tures, 282 ; classification of returns,
298-302 ; census schedules, 319 ; in
city manufactures, 338-342.
Wage Statistics and the Federal
Census, by C. J. Bullock, 343-368.
Walker, F. A., on defective enumera-
tion of negroes in 1870, 40 ; on sta-
tistics of paupers, 188-191 ; contri-
biition of artisans to wealth of
country, 273 ; cloth printing and the
value of manufactures, 276 ; statist-
ics of values of manufactures, 281-
83 ; capital in manufactures, 284-286,
325 ; canvass of productive indus-
tries in cities, 306 ; special investi-
gation of manufactures, 346.
Waite, F. C, wages of officers and
clerks, 351.
Wargentin, — , Swedish life tables,
158.
Water companies, omitted from cen-
sus of wealth, 377.
Wealth, Taxation and Indebtedness,
by C. C. Plehn, 369-414.
Weeks, J. D., wages in manufactures,
351-352.
Welton, T. A., on local death rates in
England and Wales, 142.
Weyl, W. E., Statistics of Transpor-
tation, 246-256.
Wilbur, C. L., Mortality Statistics
of the Eleventh Census, 108-120 ;
plan to improve mortality statistics,
167.
Willcox, W. F. , Area, Population,
Birthplace, Migration, and Con-
jugal Condition, S-37 ; compara-
bility of census returns for negroes,
41 ; accuracy of registration records,
129.
Wines, F. H., outdoor poor, 192 ;
special census agent on crime, pau-
perism and benevolence, 195.
Women, in gainful occupations, 100,
lOI.
Wool manufacture, in relation to
value of manufactures, 276.
Wright, C. D., farm statistics, 223 ;
the premium on gold in 1870, 267 ;
the " average" wage, 299.
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