Peto, 1865

1. In what sense did Peto find the financing of U.S. railroads unusual?  What problems did this raise?  (p. 514)

2. Was Peto in favor of rapid expansion of railroads, or did he fear that they are expanding too fast?  (p. 515)

Poor, 1869  (Note Poor's recognition of the future of trade with Asian countries.)

3. What were Poor's arguments in favor of federal financial assistance for railroad expansion?   (pp. 516-517)

Adams, 1871

4. What problems with railroads did Adams propose to address?  Give an example of each.  (pp. 32-46)

5. What connection did Adams see between the number of competitors and the degree of competition?  (pp. 34, 37)  Was Adams right?  How could you, as an economist, decide?

6. What connection do you see between Adams' discussion of states rights on pp. 34 and 35 and modern corporations? 

7. What accounted for the "ruinous" competition described on p. 37?  (Hint: look up and review the theory of natural monopoly.)

8. What features are necessary for successful cooperation among potential competitors? (Answer this both in theory, and as explained by Adams on p. 37)

9. Explain what is going on in the quote " 'We must live. If our through [i.e. long-haul] business is done at a loss ... , then our local business must pay all' " (p. 38).   Why would the long-haul business be done at a loss?

10. Why did "competition yield to the desire for combination"? (p. 47).

11. What various alternative solutions to railroad problems did Adams suggest?  What criticisms exist for each proposed solution? ( pp. 47-61)

12. What did the Illinois Constitution accomplish?  What did it not accomplish? ( p. 51)

13. What was Adams’ solution to the necessity to retain the separation of powers, and not let the legislature both pass laws and judge their application? ( p. 56)

14. How should regulators set rail rates (prices)? ( pp. 57, 58)

15. What was the significance of the court case Munn v. Illinois ?

Readings in The Nation, 1873

16. Define "corners" and "watering stocks" (p. 381).

17. What was happening to the relative prices facing farmers for agricultural and manufacturing goods in 1873, and why?

18. What system was put in operation "no sooner had the Southern members left Congress"? (p. 382)

19. What prevented Western farmers from competing with Russian wheat?

20. What does it mean "to get the long end of the lever"? (p. 382)

21. What was the cause of the farmers' discontent?