ECONOMIC HISTORY AND KINDRED SCIENCES 213 



in the least disturbing its foundation. It is undoubtedly destined 

 to exercise a still more important influence upon political economy, 

 and by a more accurate knowledge of facts and their development 

 to provide for it in greater degree a solid, well-built framework. 

 By this means economic policy or practical political economy, which 

 has only recently acquired an independent position, may gradually 

 gain a dominating importance. 



In this connection America especially has lofty tasks, I might 

 indeed, say duties, to fulfill toward science. In no other country 

 has economic development progressed so characteristically, so 

 rapidly, and so fully under the observation of the watching, civilized 

 world, and this at a time when statistics are constantly giving us 

 instantaneous pictures of conditions. The extremely valuable and 

 interesting material which is thus supplied must of course be sup- 

 plemented by special investigations. But so far as I have surveyed 

 the literature, there seems to be a great lack of such special studies, 

 although to undertake them should be a real pleasure for every 

 American with economic interests. The attention of Americans, 

 however, has hitherto been directed, naturally enough, more to the 

 future than to the past. 



What an instructive picture might be drawn of the effect of inven- 

 tions upon the transformation of industry! But as to the extent 

 of small industries and their importance even at the present day we 

 lack all information, to say nothing of the changes in the last decade. 

 And if such a study be made, it will certainly yield quite unexpected 

 results, not only for Germany but for America, and will remove 

 considerable prejudice. 



The changes in the size of holdings of landed property and of 

 agricultural industry in different parts of this country, resulting 

 from colonization and the extension of the railroad system, and the 

 consequent lowering of the prices of agricultural products, are most 

 instructive even for purely theoretical investigation. To be sure, 

 statistical data alone would not suffice, least of all in the broad 

 averages usually given, but changes should be traced in detail for 

 small areas in different regions which may be regarded as typical. 

 We most keenly need a history of prices and wages for America. 

 Much that is valuable is offered to us on the financial history of the 

 United States, of the separate states as well as of a few municipalities, 

 but of the smaller towns we know almost nothing. Yet it is precisely 

 the comparison of these different bodies which would be of extreme 

 interest for the science of finance. 



It would be easy to multiply examples, but I shall give only one 

 more here. One of the most important questions of the time is 

 whether the course of modern development leads to the destruction 

 of the middle class or whether it raises and strengthens this class. Is 



