Frank Albert Fetter

The acceptance of the wage-system thus far has been the inevitable price to be paid for manufacturing and industrial development; and one of our economic problems is to determine whether this must continue, and if so, whether in the same measure as in the past.

Many economic and cultured forces furthered this movement, but the most powerful intellectual force in its favor was the work of Adam Smith. So strong an impression did Smith's book make, that in the minds of men "free trade" became almost identical in thought with political economy, whereas that was but the temporary economic problem of the eighteenth century.

many of the newly settled states, may consist almost entirely of self-employed owners of land. Bulgaria, before the Balkan wars called the peasant state, presented this organization (tho of course with some wage-payment), as did also its neighbor Serbia. But given the institution of private property with competition (freedom to buy and sell), let manufactures and commerce develop to any extent, and inequalities of fortunes increase while an increasing number of persons work for wages. It is noteworthy that as this goes on (as it has done in America at an increasing rate since the middle of the nineteenth century) it is the agricultural and rural hand industries that continue to be

as a price-good to get something else which they desire, that a thing has the character of money. The thing called money thus is a durative good passing from hand to hand in a community, and completing its use in turn to each possessor of it only as he parts with it.
The use of money is of such social importance, that it would be impossible for modern industrial society to exist without it. The discussion of money touches many interests, it raises many questions of a political and of an ethical nature. There are perhaps more popular errors on this than on any other one subject in economics, but the general principles of money are as fully understood

5. Divisibility; that is, the quality in the monetary material that permits it to be divided easily into smaller amounts and then to be united again into larger masses at little cost and without loss in amount or in quality. This quality is present only when the material is quite homogeneous throughout the whole mass, a condition fulfilled more completely by the metals than by any other goods.

Shells are used for ornament in poor communities but cease to be so used in a higher state of advancement

The extent to which, on an average, money is used in different parts of the world differs widely. The use of money in Siberia is less than in European Russia, and its use is less there than in western Europe.

Brazil……………… 18.79 Russia……………… 6.45
Denmark…………….. 17.73 Japan………………. 5.68
Belgium…………….. 15.83 Bulgaria……………. 5.57
Austria-Hungary……… 14.68 Serbia……………… 5.49
Rumania…………….. 13.24 Venezuela…………… 5.51
Italy………………. 13.09 India (British)……… 5.19
South Africa………… 12.93 Ecuador…………….. 4.62
Norway……………… 12.50 Peru……………….. 3.17
Sweden……………… 11.59 Colombia……………. 2.32
Greece……………… 11.02 Paraguay……………. .57
7. #Money defined and re

The use of money as compared with barter is generally much greater in the cities than in the rural districts. In the cities of Mexico not only money, but banks and credit agencies are in general use;

whereas the rural districts are more backward and make far more use of barter than is the case in the United States. At the ports in the cities of China, India, and South America the use of