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Carnegie Endowment for International Peace

DIVISION OF ECONOMICS AND HISTORY

JOHN BATES CLARK, DIRECTOR

PRELIMINARY ECONOMIC STUDIES OF THE WAR

EDITED BY

DAVID KINLEY

Professor of Political Economy, University of Illinois
Member of Committee of Research of the Endowment

WAR ADMINISTRATION OF THE RAILWAYS
IN THE UNITED STATES AND

OXFORD UNIVERSITY PRESS

AMERICAN BRANCH: 35 WEST 32ND STREET

London, Toronto, Melbourne and Bombay

1918

The battle of the Marne was won by the railways of
This is a railway war.

France

MARSHAL JOFFRE

Preliminary Economic Studies of the War

EARLY ECONOMIC EFFECTS OF THE EUROPEAN WAR UPON CANADA, by Adam Shortt, formerly Commissioner of the Canadian Civil Service, now Chairman, Board of Historical Publications, Canada.

EARLY EFFECTS OF THE EUROPEAN WAR ON THE FINANCE, COMMERCE, AND INDUSTRY OF CHILE, by Leo S. Rowe, Professor of Political Science, University of Pennsylvania.

ECONOMIC EFFECTS OF THE WAR UPON WOMEN AND CHILDREN IN GREAT BRITAIN, by Irene Osgood Andrews, Assistant Secretary of the American Association for Labor Legislation.

WAR ADMINISTRATION OF THE RAILWAYS IN THE UNITED STATES AND GREAT BRITAIN, by Frank H. Dixon, Professor of Economics, Dartmouth College, and Julius H. Parmelee, Statistician, Bureau of Railway Economics. EFFECTS OF THE WAR UPON INSURANCE, WITH SPECIAL REFERENCE TO THE SUBSTITUTION OF INSURANCE FOR PENSIONS, by William F. Gephart, Professor of Economics, Washington University, St. Louis.

GOVERNMENT WAR CONTROL OF INDUSTRY AND TRADE, WITH SPECIAL REFER-
ENCE TO GREAT BRITAIN AND THE UNITED STATES, by Charles Whiting
Baker, New York City.

WAR ADMINISTRATION OF GREAT BRITAIN AND THE UNITED STATES, SHOWING
CHANGES IN GOVERNMENTAL ORGANIZATION CAUSED BY THE WAR, by John
A. Fairlie, Professor of Political Science, University of Illinois.
EFFECTS OF THE WAR UPON LABOR CONDITIONS AND ORGANIZATION, WITH
SPECIAL REFERENCE TO GREAT BRITAIN AND THE UNITED STATES, by Mat-
thew B. Hammond, Professor of Economics, Ohio State University.
WAR FINANCE AND TAXATION, ESPECIALLY IN GREAT BRITAIN AND THE UNITED
STATES, by Frank L. McVey, President, University of Kentucky.

EFFECTS OF THE WAR ON NEGRO LABOR AND MIGRATION IN THE United States, by Emmett J. Scott, Secretary of Tuskegee Institute.

EFFECTS OF THE WAR ON SHIPPING, by J. Russell Smith, Professor of Industry, University of Pennsylvania.

AGRICULTURAL PRODUCTION AND FOOD CONTROL IN GREAT BRITAIN AND THE UNITED STATES, by Benjamin H. Hibbard, Professor of Agricultural Economics, University of Wisconsin.

PRICE CONTROL IN GREAT BRITAIN AND THE UNITED STATES, by David Kinley, Professor of Political Economy, University of Illinois, and Simon Litman, University of Illinois.

ECONOMIC AND SOCIAL EFFECTS OF GOVERNMENT CONTROL OF THE LIQUOR BUSINESS, WITH SPECIAL REFERENCE TO GREAT BRITAIN AND THE UNITED STATES, by Thomas Nixon Carver, Professor of Political Economy, Harvard University.

TRAINING OF DISABLED SOLDIERS AND SAILORS FOR ECONOMIC Usefulness, by Edward T. Devine, Professor of Social Economy, Columbia University.

INTRODUCTORY NOTE BY THE DIRECTOR

The Division of Economics and History of the Carnegie Endowment for International Peace is organized to "promote a thorough and scientific investigation of the causes and results of war." In accordance with this purpose a conference of eminent statesmen, publicists, and economists was held in Berne, Switzerland, in August, 1911, at which a plan of investigation was formed and an extensive list of topics was prepared. An elaborate series of investigations was undertaken, and, if the war had not intervened, the resulting reports might have been expected, before the present date, in printed form.

Of works so undertaken some aim to reveal direct and indirect consequences of warfare, and thus to furnish a basis for a judgment as to the reasonableness of the resort to it. If the evils are in reality larger and the benefits smaller than in the common view they appear to be, such studies should furnish convincing evidence of this fact and afford a basis for an enlightened policy whenever there is danger of international conflicts.

Studies of the causes of warfare reveal, in particular, those economic influences which in time of peace bring about clashing interests and mutual suspicion and hostility. They show what policies, as adopted by different nations, reduce the conflicts of interest, inure to the common benefit, and afford a basis for international confidence and good will. They tend, further, to reveal the natural economic influences which of themselves bring about more and more harmonious relations and tend to substitute general benefits for the mutual injuries that follow unintelligent self-seeking. Economic internationalism needs to be fortified by the mutual trust that just dealing creates; but just conduct itself may be favored by economic conditions. These, in turn, may be created partly by a natural evolution and partly