Part 38

7. In what lines of business is there little or no development toward large-scale methods? State the reasons. Page 37.

8. What is meant by standardization? What are the advantages of such a system? Page 38.

Trusts and Monopolies.

1. Enumerate the phases through which combinations for the purpose of fixing prices, have passed. Page 40.

2. What is the advantage of the corporation? Page 41.

3. Give a brief history of the trust movement. Page 42.

4. What economies are secured by a combined or federated industry? Page 43.

5. Name some of the savings which are peculiar to trusts. Page 44.

6. Give an illustration showing the profits of a 406 successful trust promoter. Page 45.

7. What is the effect of industrial combinations upon competitors? Upon producers of raw material? Page 46.

8. Explain the two phases of the relation between trusts and labor. Page 47.

9. What conclusion as to the power of the combination over prices, does the Industrial Commission reach? Page 48.

10. From what two sources do the evils of combination come? What remedies have been suggested to meet both classes of evils? Page 50.

Speculation and Crises.

1. How does the speculator reduce for the merchant the speculative risk attaching to price fluctuations? Illustrate. Page 52.

2. What social value lies in the service of the speculator? Illustrate. Page 53.

3. Explain the difference between legitimate speculation and illegitimate speculation (gambling). Page 54.

4. What is a crisis? Page 55.

5. Discuss the immediate occasion of a crisis. Page 56.

6. What is W. S. Jevons’ theory as to the causes of crises? Page 58.

7. Explain the over-production theory which is given as a cause for crises. Page 58.

8. What is the credit theory of the cause of a crisis? Page 59.

9. Where is the true explanation of a crisis to be found? Page 60.

10. Is it possible to prevent the recurrence of crises? Page 60.

The Modern Wage System. 407

1. Give some beneficial results and some abuses of the factory system. Page 61.

2. Name five points which Mr. Hobson gives to show that, in the transition to the factory system, the position of the laborer has been one of increasing dependence. Page 62.

3. How does President Hadley define wages? Page 63.