paid for in part by the industry and the consumer, and not solely by the family of the injured. Such laws we call Workmen's Compensation Laws. There are such laws in all but about six of our states, and about half of all the employees now enjoy protection under those laws. The federal government and a dozen of the states also provide for compensation for occupational diseases. Through such laws we take from those injured and their families a small portion of the money loss due to industrial accidents. They must bear alone the anguish and the mutilation.

Laws in England and in Germany also provide, under proper safeguards, for sick insurance and for old age pensions. Such laws are being given careful consideration by some of our best statesmen, who find in them a means to alleviate the burden of preventable sickness and premature deaths due to stopping the worker's income when ill, the very time he most needs it.

The Goal of Work. The object of work is, or should be, twofold: to supply one's own wants, and to help supply the wants of others. Fortunately, the two aims do not antagonize each other. In the world of business and industry a better living is made when all work together to produce goods and services economically, and in the interest of all.

TOPICS FOR INVESTIGATION AND DISCUSSION

1. What do you intend to do when you leave school? Is the job you are considering a “blind alley" job? What qualifications does it call for? Have you acquired these yet?

2. Write a short story tracing some other article of food as tea and bread are traced here.

3. Visit a modern factory and discuss this visit with your class.

4. Visit a farm and tell the class what you learned.

5. Give the arguments for and against labor unions.

6. In your own words, tell what is meant by a "standard of living." What is a "luxury"?

7. Make a list of the ways in which government helps indus

8. Give three illustrations of business regulation by our

ment.

9. Bring in pictures of trademarks. Show why these are important to a business firm.

10. Bring to the class a list of things that have been patented. Tell the class why each is important.

11. Find the copyright in this book and tell the class its value. 12. Interpret Lowell's meaning in the quotation at the beginning of the chapter.

13. Why are the labor conditions in China of importance to American producers? to American consumers of Chinese goods?

SUGGESTED READINGS FOR COMMITTEE REPORTS

1. Tappan's When Knights Were Bold: Chapter IX, Merchant and Craft Guilds; Chapter XII, How Goods Were Sold.

2. Williamson's Readings in Economics: Chapter XXXIII, Industrial Relations, Rise of the Labor Organization.

3. Ely and Wicker's Elementary Principles of Economics: Chapter IV, Treating of Modern Manufacture, Transportation, Economic Legislation, Wages, Labor Laws, Public Inspection of Goods, etc.

These reports may be followed by discussions of the following topics: 1. Comparison of the old guilds and the modern trade unions. 2. Guild inspection of goods contrasted with government inspection in the United States today.

3. Difference between methods of making a living a hundred years ago and those of today.

4. How modern means of communication and transportation have affected the economic condition of mankind.

ADDITIONAL REFERENCES FOR ADVANCED STUDENTS AND TEACHERS

1. Williamson's Introduction to Economics: Chapter VI, Occupations of the American People; Chapter XIV, What Determines the Price of a Good; Chapter XXXIV, Labor Legislation, Child Labor, Women in Industry, Social Insurance.

2. Gowin and Wheatley's Occupations: Part III, Chapter XIV, Choosing Your Life Work.

3. Haskin's American Government: Chapter VIII, The Patent Office. 4. Bok's The Americanization of Edward Bok: Chapter XI, How He Made a Living.

5. Mary Antin's The Promised Land.

6. Parson's The Land of Fair Play.

7. Davis' The Iron Puddler.

8. Fairchild's Elements of Social Science: XIX, Standard of Living. 9. King's Lower Living Costs in Cities.

CHAPTER IX

MONEY, INCOME, AND WEALTH

"By doing good with his money a man, as it were, stamps the image of God upon it, and makes it pass current for the merchandise of Heaven."

-Rutledge

The main object each one has in making a living is to supply his needs and pleasures. A man's needs, as shown in an earlier chapter, are primarily for food, shelter, and clothing. These are nec

essary to his physical well-being and must be supplied first from the income he earns. With the surplus he may then satisfy his other wants, including pleasures. Naturally, his ability to meet these wants varies with the amount of this surplus. The ability to satisfy desires over and above his actual necessities of life determines the standard of living of the individual.

Courtesy The Museum of the University of Pennsylvania
STONE MONEY

This piece of fine white stone, about two
feet in diameter, is typical of the native
money used in the Island of Yap.

Each boy or girl usually knows of something he or she hopes to own at some future date. It may be a pretty bracelet; or an automobile; or a typewriter; or a pony. Before he can buy things, he himself or some one for him must work to get the money to pay for them.

The Use of Money. Money in and of itself has little value. Gold coins only are intrinsically worth their face value in other commodities. But people could not make their living as they now do without money as a medium of exchange.

In early times goods were bartered, one article for another. For example, a certain amount of wheat was given for a COW. Barter is still widely practiced in some of the less civilized countries, as in parts of Africa and in some of the Pacific Islands.

Until recently a curious primitive market existed in the southern part of the Philippine Islands. The people living in the hills on the smaller islands in that part of the Philippines needed salt, shell lime, and sea foods, and desired for adornment colored cloth, beads, brass rings, and colored yarns. The coast people, chiefly fishermen, needed tobacco, spices, the vegetables, and the cereals grown by the hill farmers. Each was afraid to deal directly with the other. But by common consent a huge banyan tree was chosen as a market place. From the wide-spreading branches of this tree the hill men would suspend baskets or bags in which they would put the various products from their farms.

They would then retire a distance out of range of the knife, spear, or musket of the coast folks. The fishermen would then come in from the sea and hang up strings of fish or wriggling crabs in exchange for the basket or bag that the farmer had left, or they would leave some colored cloth or beads they had received elsewhere. If a native found no bundle to satisfy his desire for exchange he simply tied his own package to a limb of the tree where it would attract attention and returned to his boat, if a fisherman, or to his shack if a farmer, coming back at intervals until a satisfactory exchange had been accomplished.

While these people did not trust each other with their lives they were forced to trust each other with their property. Each had to have the products of the other. So the custom

among these savage people was always to make a fair exchange. If the fair exchange ceased the market ceased, and neither could afford to have that happen.

But we should slow up all industry immeasurably if we had to take the time to barter each commodity we may have, or each hour of service we may render, for the other commodities or services we want. How little we could get done in this workaday world if we had to barter for everything we wanted! A farmer's wife would have to strike a bargain with a neighbor who had woven more cloth than she needed as to how many yards of that cloth she would give for two geese. A city housewife desiring some beans for dinner would haggle with some farmer as to how long she would have to work for him to earn a peck of beans.

Instead, we sell our services or our goods for money. And in every purchase we make comparisons as to what is worth most to us. Money, therefore, is simply a medium of exchange. But as a medium of exchange it plays an important part in making a living.

The Currency We Use. Under the Articles of Confederation each of the thirteen original colonies coined its own money. As a result there

PINE-TREE SHILLING

These coins were made at a mint

arose much the same confusion as exists in Europe today, where every time a traveler crosses the boundary between two countries the coins he uses change in names, appearance, and valHis old coins must be excharged for the new coins or else he is unable to purchase food or pay for shelter. To prevent such confusion, the makers of our Constitution gave our National Government the power to "coin money, regulate the value thereof, and of foreign coins." Congress may also provide penalties for counterfeiting the moneys of

ue.

colonies.