STUDY OF COMMERCE

Evening Post, Volume CXII, Issue 110, 5 November 1926, Page 3

STUDY OF COMMERCE

LATEST DEVELOPMENTS

SOME GERMAN INSTITUTIONS

REMARKABLE COLLECTION OF CHARTS.

Despite the economic crisis through which Germany has passed in the laßt three years, there Jiavo been some striking developments in the provision of University studies in economics and commerce, writes Professor D. B. Copland in a dispatch, from Berlin to theMelbourne "Argus." Before the war schools of commerce were being established in the chief business centres, that at Cologne being the most striking. A visit to the University of* Cologne, which grew in the first instance out of the School of Commerce, revealed clearly the contrast between the commercial prosperity of Germany before the war and its decline after the war. There #c at present about 2500 students in commerce and economics at Cologne, but the TJniversity is hampered by lack of funds. The library is not at its pre-war efficiency, and the extraordinary economic museum attached to the school shows signs of neglect. The museum was intended to demonstrate the industrial and commercial life of Germany and its colonies. There is rio doubt that it succeeded in doing so. The leading industries are shown by models of the machinery used and the organisation of the factory. There are elaborate charts depicting the interlocking of companies in the metallurgical industries. Leading commodities are displayed in successive stages of their production. This remarkable collection must surely have offered a unique opportunity to the student of commerce. It represented the donations of private business, and offered convincing proof of the value set by Germany before the war upon higher study in economics and commerce. THE INSTITUTE OF KIEL. The war has not made fundamental changes. Most institutions are cramped by lack of funds, but the activity is still remarkable. The Institute of World-wide Economics at Kiel is perhaps the most interesting institution offering higher courses in commerce, and is mostly a war -and post-war growth. I was surprised by the magnificence of the buildings in which the professors work and teach. It was a little disconcerting to one accustomed to University life in Australia and New Zealand, and contrary to what I had expected to find in Germany at present. I was even more surprised when the story of the growth of the institute was told to me. It is the practice in Germany to invite professors to fill any vacancy that occurs. In 1908 Dr. Bernhard Harms was invited to become professor of political economy at Kiel. At tho same time he received an invitation from another University, and he was able to drive a bargain with Kiel before accepting. The essence of this bargain was that greater financial provision should be made for the library in economics and for the economic seminar, which was then becoming the fashion in Germany. Under this system the student in economics undertakes practical work, as does a student of pore science. These exercises are conducted in the libraries or seminars under the direction of special professors. With increased funds for this work Dr. Harms soon had one of the leading schools of economics in Germany. From a modest beginning the seminar developed into an Institute of World-wide Economics, supported mainly by private funds. The institute provided not merely the ordinary training in both lectures and seminars for students, but also higher research into problems of international trade. It also began the collection of information upon economic conditions throughout the world, and made plans for the extension, of its library. The war rather stimulated growth, and there was a constant de-. ruand for fresh accommodation, despite the new buildings acquired at the beginning of the war as a result of a special collection of funds from private business. Meanwhile Kiel has been thriving as one of the chief naval centres of Germany. Among other things it had a luxurious hotel, built by Krupp for the summer holidays of rich Germans, and especially for the gaieties of Kiel week. Near by was the Imperial Yacht Club, used by the Emperor during this annual festival. Both this club and the hotel have passed to the Institute of World-wide Economics, and are now used by humble professors and students of economics. The furniture of the hotel has been changed as little as possible, which accounts for the evidences of luxury that strike the visitor. PALACE AS RESEARCH BUREAU. This is not the only building used before the war for military or naval purposes which has passed into the hands of educationists. The old Imperial Palace in Berlin is in a similar position. Several times I went to the palace to visit the secretary of an institute, the object of which was to promote research in the social sciences. In its palatial quarters the Institute of World-wide Economics is able to expand its activities in three main directions—(l) the training of students of commerce and • economiesj (2) the collection of information upon trade and economic conditions, and the creation of a large library; and (3) the publication of a periodical upon world trade and economics and such other material as may be prepared under the aegis of the institute. All three tasks are being carried out with great energy and thoroughness at present, though perhaps with little originality. I was Particularly struck by the collection of information upon trade and economic conditions throughout the world. I tested this with reference to Australia. It has been difficult to acquire information upon Australia since the war; nevertheless the files of papers, clippings, and reports showed that most of the important economic developments in Australia would be known to any student who cared to study these problems. The librarian was, however, anxious to increase his sources of information. The lectures and courses of study in the institute, as in most schools of commerce, pay more attention to "private economy" than is the practice in the older universities. The subjects studied include, in addition to ordinary economic theory, finance, international trade, taxation, banking, economic organisation, and economic geograph}'. Commercial education here, as elsewhere in Germany, is much more extensive than a training in accountancy and law, though these subjects are given a place in the curriculum. Much of the effort is devoted to seminars, in which provision is made for practical work by the student. In this respect tho institute is very fortunate, for it has splendid facilities in books, sources of information, and accommodation for such studies. Special attention is devoted to a training in rhetoric, the object of which is to supply not merely capable business managers, but also trained politicians and public men. There is also at the institute an economic museum. At present this is an interesting collection of economic products, illustrating the life story of the most important articles of international commerce. No doubt this museum will be extended; at present it is not as striking as the one I saw at Cologne. STANDARDS OF SCHOLARSHIP. I visited also the School of Commerce .at Berlin and the universities, of Heidel-

berg and Bonn. The last two are still engaged in the more prosaic teaching of economic theory along traditional lines. The object of most students is to take a doctor's degree. It is a universal complaint among the authorities that this degree is far too easily attained. It is usually below the standard of the Ph.D. degree in the United States, and in those universities of Great Britain which have made provision for this degree, and much below the older degrees of Litt.D. and D.Sc. As the doctorate thesis is usually published a great deal of immature writing is to be found in German periodicals. This raises an important aspect of economic study in Germany. Several authorities to whoiii I spoke rather deplored the failure of Germany to make a substantial contribution to economic thought. Germam economists gave a great fillip to econo* mic history in the third quarter of last century, and they have laboured at this branch of economic study with great zeal. But they have apparently, nothing to offer that compares with the work of Marshall and the Cambridge school. It is complained that the iy«tem encourages much detailed work, but offers little analysis, and that too much is done for the student, who consequently lacks originality. For positions of minor responsibility ih business this training might be satisfactory. It il doubtful whether it suffices for the more responsible posts, and there is still in Germany, as elsewhere in Europe, the conflict between the academic and so-called practical training for business. Some 6ommercial leaders still prefer to send their sons abroad for experience, chiefly in Britain, rather than to give them a formal training in a university course in commerce. This preference is not due solely to prejudice, though in part this is the cause. It is based upon a suspicion that a rigid academic training is not the best basis for a business career. But, making allowance for this possible defect in German methods, it is reasonable to suppose that she has some advantage in commerce and industry from her growing provision of university training. '