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language; that our high schools and colleges every year show an increased number of children of new immigrants; that many have taken some part in public affairs; that the new immigrants were second to none in the support they gave the United States during the Great War. It is also said that the country needs a larger supply of labor and the standard of living is not permanently lowered because the immigrant soon learns what wage the American is getting and demands the same for himself. If the new immigrant lives cheaply, so did once the German and the Irish. The old immigrant became assimilated and so will the new immigrant. Americanization.*—Many thousands of immigrants have come to the United States who have never learned to speak, read, or write the English language. To these must be added a large number of native-born Americans who cannot read or write English and who know little or nothing concerning American institutions or self-government. The total number of these classes reaches the astonishing figure of eight millions. The South has the greater number of illiterates; the North leads in non-English-speaking population. Americanization is an effort to assist the native and foreign-born illiterate to learn the English language and to be able to take part in the best that America can offer to its people. It has nothing in common with the efforts which the old Russian Empire made to Russianize the province of Finland and of Turkey to suppress the liberties of the Armenians or of the Germans and Austrians, before the fall of the empires of central Europe, to crush the * See Appendix.

national customs of their subject peoples. Americanization seeks to help the less fortunate among our population so that they can take an intelligent part in our life, may know our heroes and make them their own, and may share in the economic advantages that our country offers. Americanization not only concerns itself with the immigrant and the native illiterate but it helps the Americans to understand the immigrant, to sympathize with him, and to know his value to the country. The immigrant must not think that we do not care for him. We must care concerning his welfare and must welcome him to a common enjoyment of the advantages which our country offers.

Summary.—The efficiency of labor depends upon physical qualities such as health, strength, and intelligence. Moral and mental qualities are no less necessary. Division of occupation and division of labor increase efficiency. The population of the United States has increased (1) by the excess of births over deaths, (2) by the excess of immigration over emigration. A country may be overpopulated or underpopulated. According to the Malthusian theory overpopulation has been a chief cause of human suffering. The United States on account of its great reSources has always attracted immigrants from less fortunate countries. The “old immigration” came from northern Europe; the “new immigration” comes from southern Europe, central Europe, and Russia. It is necessary that immigrants be taught our language and institutions. The object of Americanization is to help the immigrant and to help America.

TOPICS FOR DISCUSSION, DEBATE, AND SPECIAL REPORTS

I. What are the leading industries of your city ? For the manufacturing of what articles has your city exceptional advantages? What are these advantages? 2. Is labor in your city more or less efficient than five years ago? Why? Ask the opinion of some manufacturer. Also ask some laborer. 3. Visit some local factory and study the division of labor. 4. Should immigration into the United States be further restricted? How would the prohibition of all immigration affect the industries of your city? What would be its influence upon wages? 5. What is Americanization? What efforts toward Americanization are being made in your city? How can you help Americanization? 6. What have Italian immigrants done for America? What benefits have come from German immigrants? from Irish 2 from Hebrew P from Scandinavian? from English?

CHAPTER VII

THE NATURE AND USE OF CAPITAL

When Robinson Crusoe tried to catch fish with his hands he found the task difficult. A few poor and unpalatable fish were all that he could secure. The thought came to him that by spending a few hours in making a line from a grape-vine and fashioning a hook from a bone he would be more successful. He was not disappointed. But the best fish were still beyond his reach. He therefore spent several days in chopping down a tree and from it making a dugout canoe. Then a net was made from some rope that he had salvaged. Thus equipped he ventured out to sea and in a few hours caught enough fish to last for days. The line and hook, the boat and net were capital. It took labor to make them and he was obliged to wait for his reward until the fish were caught.

Capital is sometimes called “the produced means of production.” It consists of all the products created by labor in co-operation with nature, which are not used to satisfy present wants, but are used for the making of more goods. Tools, machinery, buildings, wagons, raw materials, railroads, and all other material goods used in the production of wealth are capital. Bank-accounts, which are necessary for the conducting of business, are capital, as is also the money necessary to carry on a business. Land is not capital. It is a gift of nature and the laws

governing the earning power of land are different from those governing the returns to capital. The knowledge and skill a man possesses are not capital; they are a part of himself. Goods used to satisfy wants are not capital. They are known as “consumers' goods,” to distinguish them from “producers’ goods” or capital.

Capital and Capital Goods.-The business man does not use the term “capital” in exactly the sense in which it is used by economists. To the business man the term capital means the value of his equipment in money, plus the money used to carry on the business and the bank accounts which the business has acquired. Many business men would also include “good-will,” patents, and trade-marks as part of their capital.

Some economists distinguish between “capital” and “capital goods”; using the term “capital goods” to apply to machinery, tools, buildings, and other goods which wear out during the process of production and are constantly being replaced and repaired. “Capital” they use as the value of these goods in terms of money, including also the value of other aids to production.

Fixed and Circulating Capital.-Economists distinguish between fixed and circulating capital. Fixed capital is capable of being used many times, while circulating capital is consumed in one act of production. It is fitly called circulating capital, for its value passes into the article produced. For example, a boiler is fixed capital; the coal that is fed into the boiler is circulating capital. The distinction is one of degree only, as no capital is unaffected by use. Another example of fixed capital is the machinery in a candy factory. The sugar used in making candy is circulating capital.

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