The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1896-04-03
ECON OMlCS.
Mr.. Coles First Lecture in the University
Extension Course.

Mr.. William Morse Cole, A. B., gave
the first lecture in his university extern
sion course at Assem- bly, hall, high school
building. to quite large audience COM
posed of many of Portland's well known
and ablest thinkers, last evening. The
special subject was "The Agents in the
Production of Wealth and the Primary
Principle of Rent"
Mr.. Cole in the beginning of his lecture
spoke of the field of economic study as
the production, distribution, and ex-
change of wealth in civilized society and
among men actuated by normal motives
and conducting their operations in the
normal manner. Economics, therefore,
does not offer its conclusions to be ap-
piled directly to abnormal conditions OF
transactions. 1t is highly practical for
it furnishes the general, fundamental
principles which give an insight into all
economic activity. Its relation to poll
| tics, or the art of government, is like that
| OF physiology to hygiene. 1t does not de-
eide between politics-it furnishes the
| knowledge of principles which enables one
possessed of facts and having certain
aims to decide for himself.
| A knowledge of the primary laws of
production and distribution is essential
for comprehension of the problems of
wealth and poverty. Not all things useful
or agreeable are wealth, but emily those
which are also transferable, capable of ao-
cum ulation and limited in quantity
Mans only physical power is that of
moving things His mechanical agency
in producing wealth is therefore small
Without the forces and materials supplied
by nature, man would be helpless Yet,
in modern times, even with the maxi
mum assistance of nature few men unas-
| sisted by capital produce a 1.-THE of what
| they consume. Thus land and labor are
| the requisites of production; and capital,
though not always absolutely necessary,
is a necessity if modern methods are used,
and in .any case increases the produce
many fold.
| Not all labor is productive Of wealth;
but some which seems at first sight I'M
productive is in reality highly productive
| and much that is unproductive is Of far
greater Importance to the community
than it could be if it were devoted to pro-
duotion.
Capital, in this economic sense Of the
| word, is wealthgset apart to sistaafurther
| production. The owner has sacrificed his
| immediate satisfaction in the use of it by
deyoting it to increase the productive
forces of the community. 1t serves it's
use by being consumed, but would be
yalueless to tire community if it were
boarded Recompense for its consump-
ton is furnished in the product which it
assists in producing.
OF the three parts into which the pro-
duce of industry is commonly divided,
we shall first consider rent. Rent owes
it's origin to the diversity of lands. If
all land were like all other land and
there were enough to satisfy everyone,
there would be no rent. At one time in
every country there was enough good land
| to satisfy everyone, and therefore no one
paid rent. The poor lands were not Guilt
waited. AS the community grew and re-
quired greater produce, however, the law
of diminishing returns came into effect
and forced cultivation down on poorer
lands or induced more expensive processes
of cultivation on the old lands. AS the
community was thus obliged to pay more
for it's produce, the better lands, pro-
ducing as oheaply as before. yieldsd more
and profit The owner demanded this
surplus in rant, and the cultivator not
only was able to pay it, bat was forced to
do so by the competition of others. Rent.
then, is payment made to the owner of
superior land for it's use, and the amount
of rent is measured by the superiority
of that land over land which yields only
normal wages and profits, i. g., the supe-
riority of that land over the poorest land
which must be cultivated to supply the
needs of the ommunity. A change in the
demand for products which affects the
margin Of cultivation therefore affects
rents.
the subject and Mr.. Cole was given the
most appreciative and interested atten-
ton, At it's close class discussion was
held as is customary in the University
Extension course and numerous matters
of interest were brought out by the au-
dienoe and answered by Mr. Cole. The
next lecture will be on the subject Of
l"Unearned Increment"
At the close of the lecture it was an
nouned that a committee would be ap-
pointed at the lecture, next Thursday
evening, to nominate officers for branch
of the Extension in Portland and prepare
a constitution.
Nathan Smith Cleveland.