Knowledge that Transforms

How FAR does the conception of marginal units of production assist tow-ard a theory of distribution? It is easily shown that if an unlimited amount of labor is procurable for a business wxhere the othler factors of production are given quantities, the last unit 1brought into employment will receive no aid or a minimum ai(l -from the other factors and w07ill take in w-ages virtually the w'hole addition to the productivity of the business wThich follows its employment. This is clearly set forth by Professor AMarshall in the illustration of the marginal shepherd. A farmer with a Siven farmn and farming capital calculates that it is just w-orth while to employ a tenth shepherd, whose addition to hlis staff enables twvenlty more sheep to be marketed in a year than wvould be the case wrere nine shepherds employed. These twenty slheep miust be accredited to the marginal sheplherd as the specific prodluct of his labor, and he will receive them, or their value, for his, wages. For though he receives the same assistance from the land and capital as the other shep'herds do, it is necessary to assume that no more productivity is got out of these factors wNhen tenl shepherds are employed than previously when nine

THE phenomenal growth of the beet-sugar industry in the United States and the importance given to it in late congressional considerations, together with the recent action of France in so modifying her laws as to remove 6o per' cent. of the customs and internal-revenue tax on sugar, and the relation which this is likely to have upon the readjustment of the world's sugar supply, make a consideration of the desirability of the United States producing her own sugar especially pertinent at this time. This action of France, and. the more recent utterance of the Berlin Conference, classifying Russian sugar as "bounty-fed," and fully sustaining Secretary of the Treasury Shaw in his recent contention with the Russian government over the same point, has probably sounded the death-knell of bounty-fed sugar, for we may reasonably expect that an action similar to that of France will be taken by the other states of continental Europe. Should this course be followed in Germany, Russia, and Austria-Hungary, it is inevitable that there will be an entire readjustment of the world's sugar conditions. The very natural question is, then: What may be the effect on this promising new industry of the United States? Our people have become so accustomed to the term "cane sugars" that they do not realize that within the last few years the source of the world's supply has been largely shifted from cane to the beet plant. In i853 the world's sugar supply was I,48i,ooo long tons, of which 304,000 tons is accredited to the beet, or about

Journal Article Recent Publications upon Economics Get access The Quarterly Journal of Economics, Volume 19, Issue 1, November 1904, Pages 152–166, https://doi.org/10.1093/qje/19.1.152 Published: 01 November 1904

Recent Publications upon Economics Get access The Quarterly Journal of Economics, Volume 18, Issue 4, August 1904, Pages 596–606, https://doi.org/10.1093/qje/18.4.596 Published: 01 August 1904

Journal Article Recent Publications upon Economics Get access The Quarterly Journal of Economics, Volume 18, Issue 2, February 1904, Pages 305–320, https://doi.org/10.1093/qje/18.2.305 Published: 01 February 1904

Journal Article La Revue Économique Internationale Get access The Quarterly Journal of Economics, Volume 18, Issue 4, August 1904, Page 595, https://doi.org/10.1093/qje/18.4.595 Published: 01 August 1904