Review of the Book:

Hard Times
by Richard T. Ely

Benjamin W. Burger

[Reprinted from Land and Freedom, May-June, 1931]

I think it was Carlyle who stated that the stupidity of the human animal knew no bounds.

I know that the late Senator Watson of Georgia, on being chided because of the low intellectual appeal he was making in a political campaign, replied:

"Sir, it is impossible to estimate how deep is the ignorance of the mass of the American people."

I need not refer to history to justify Tom Watson's remark. Witness our late war, wherein the mental age of our youth was found to be thirteen years. (National Academy of Sciences, Memoirs, Vol. XV, page 785, 1921.)

Observe the trashy tabloids which we so greedily devour. In New York City we have one which boasts of a circulation of 1,320,000, although it has been in existence only twelve years. Contrast this with the New York Times, a real newspaper, which in thirty-five years under its present management has been able to attain a daily circulation only one-third as great.

Here is a book written by a professor of economics, whose nonsense can befuddle only the unthinking mob. It would be cruel for me to point out all the drivel which this seventy-seven-year-old professor has placed between the covers of his book. I am more disturbed that another pseudo-economist, George E. Roberts, occupying a position of authority in the National City Bank of New York, the largest bank in the United States, should deem this "a valuable book upon economics."

The dedication to Dr. Albert Shaw gives an inkling of the trash here to be found. Ely states that he first met Shaw at Johns Hopkins University. Shaw said to Ely:

" I am a country editor in Iowa, writing on strikes, boycotts, high tariff and other problems. I know nothing about all these things."

It is commendable to admit one's ignorance, but inexcusable for the blind to attempt to lead the blind. Professor Ely follows in the footsteps of Dr. Shaw, and attempts to write about something he knows little or nothing. Let us examine more closely his mature reflections of forty years. He says (page 5):

"With the thought that I might get atmosphere for this book, I bought a copy of Dickens' Hard Times".

Very appropriately he read a work of fiction before he started this book.

" In our early days our wealth was chiefly in land farm land, and to lesser degree, during the first half of our history, in urban land. " (Page 16.)

Pray, gentle reader, when, if ever, was our wealth in land? Wealth, as that term is understood by the scientifically trained political economist, consists of natural products worked up to gratify human desires. The ownership of land gives the land owner power to take wealth from those who produce it. Land is the source of wealth, but it is not now, nor has it ever been, wealth, no more than pickles are automobiles.

Professor Ely is unable to explain why the keenest sufferings occur in those countries which have reached the highest state in economic evolution, or why as we go forward from one state of economic evolution to another, panics become increasingly severe and hard times more and more terrible.

Inferentially he attempts to excuse land speculation:

"It is hard to find vacant property" (evidently meaning idle land) "which has increased in value as rapidly as money put into a savings bank at 4%. " (Page 27.)

He suggests the need of legislation to curb excessive subdivision of land. (Page 35.) He would have the government introduce "balanced production," whatever that means.

On page 48 he cites a German Socialist who advocated increasing the income of wage earners. On the following page Ely claims that:

"With higher wages a great many will lose their jobs."

I suppose Ely would advocate maintaining high wages by government fiat. I wonder if Ely understands the law of wages. I wonder if he realizes that before Labor can receive wages, and Capital can receive interest, the Land Owner must receive rent.

"One of the troubles now is that we have had this orgy of spending, including excessive instalment buying." (Page 69.)

I suppose the good professor is referring to the purchase of automobiles and radios. Does he seriously believe people would buy these things on the instalment plan (which necessarily means paying more for them than if they were purchased for cash) if they were able to acquire them outright? No rational person would hypothecate his future earnings if he were reasonably able to pay cash.

"Blessed be our savings banks -- a man who, through savings banks and building and loan associations, has a home and has it paid for --- can always borrow on a first mortgage. (Page 70.)

How does this sound coming from a professor of economics? Ely repeats the drivel about the farmer who stakes everything upon a single crop. He fails to realize that in most cases the farmer who raises only wheat, cotton or sugar, or any other commodity, is doing so because his soil is especially fitted to raise that product, and moreover he can more efficiently raise one crop than many crops.

So long as our present lack of system continues which deprives the consumer of his full purchasing power, so long will the farmer be unable to dispose of his crops, whether one or many, at prices that will give him a reasonable return for his efforts.

Ely advocates quack remedy of employment on public works. The slightest consideration will show that not even the United States Government and all the state and city governments are sufficiently strong thus to solve the "unemployment" problem.

In New York City, for example, after the most heroic efforts by the Prosser Committee, and the expenditure of many millions, work was found only for about 53,000 men, although more than ten times that number were unemployed. These unemployed received $15 for three days' work each week.

Ely advocates that the government shall step in "to give occupation." (Page 104.) For example, he says a company like the United States Steel Corporation, with the revival of prosperity, needs 10,000 men. Application can be made to the general staff of the peace-time army, who would immediately dispatch to the proper place men with the requisite qualifications. This can actually be found on page 105 of this "valuable book on economics." He advocates:

"A well devised sales tax covering relatively few commodities." (Page 113.)

This he claims, will meet with general favor as soon as we become adjusted to it! (Page 114.)

In the appendix he sets forth a programme for relief, presented to the fifth annual convention of the American Federation of Labor. From this we learn that the American Federation of Labor knows as little about economics as does Professor Ely.

Neither the professor, nor his book, is worth the space which the editor of Land and Freedom has so generously allowed me. We feel, however, that it is high time to expose him. He is representative of a class of teachers who know better but who deliberately misrepresent.