trade routes. Cooperation against pirates and robbers and regulation of city populations made city states necessary.

12. Manufacturing Stage. The establishment of cities and commercial routes encouraged manufacturing, and in turn manufacturing gave a further contribution to com-f merce. During the manufacturing stage hand implements slowly gave

way to machines. For example, the hand spindle of prehisftoric times was replaced by the spinning wheel in 1530; and ← late in the eighteenth century steam power was applied to the

manufacture of cloth. This process brought people from scattered farms into growing towns and cities. City life brought f experience and education to the people, and enabled them to wrest their rights from absolute monarchs or privileged nobles. 13. Capitalistic

cation of steam to boats and railroads, which bring raw material and food supplies to the manufacturing plants and distribute the output to the distant consumers, makes possible the concentration of capital. The development of banking systems has also aided in the concentration of capital. The result is the downfall of business competition and the formation of nation-wide and even world-wide monopolies. Thus most persons must work for wages, and if monopolies were not controlled by the state the wages of the workmen could be determined by the capitalists. The condition of employees then

would be no better than that of slaves.

14. Cooperative Stage. In reviewing the above stages of social, economic, and political development it should be noted that the first duty of politically organized society, or the state, was the protection of life and of, movable

property; then the regulation of land was added; commerce and manufacturing in turn had to be regulated. The question now facing the people is whether capital can be regulated. If a group of millionaires or bankers combine their capital to control the entire production of certain commodities or services and advance the prices, the masses of people will naturally use their power, the state, to prevent this. If regulation fails, what then? - the coöperative stage.

By a coöperative stage is meant a stage when the state will own and operate large industries which would be operated by the people or private corporations if left to their own initiative. The indications are that the United States will merely

regulate most monopolies unless regulation ceases properly to protect the masses. Should regulation cease to be effective, state ownership would be necessary; and it is possible that in the near future the United States will conduct other large businesses as it now conducts the postal and parcel post business, or as many European states conduct express, telegraph, and railroad businesses. (See Sec. 148.)

15. How a State Exercises Its Powers. -A state 1 is an organized body of people living within a limited territory and having power to make and enforce laws without the consent of any

higher authority.2 A government is the agency through which a state's purposes are formulated and executed. If the agents who run the machinery of government are under the absolute control of one person, such as the Sultan of Turkey, an absolute monarchy is said to exist; but if the monarch is restricted in his powers, as in Italy, the government is known as a limited

1 Throughout this volume the word state printed with a small "s "' denotes an independent state belonging to the family of nations, as England, France, the United States; the word State printed with a capital "S" refers to one of the members of the United States of America, as Maine, Pennsylvania, Virginia.

2 A state is the sum total of all its citizens-men, women, and children.

monarchy. If the people select their own agents to run the government without a monarch, a republic exists.1

If the citizens of a state are uneducated and incapable of choosing representatives or unwilling to abide by laws which their representatives make, an absolute monarchy may be the only form of government able to hold the state together. At one time England was an absolute monarchy, but in 1215 the nobles compelled the king to sign the Magna Charta and thereby to yield certain of his powers; in 1689 the king signed the Bill of Rights, in which he transferred many powers to the

representatives of the people in Parliament; and from time to time powers have been transferred until to-day the King of England is much less powerful than the President of the United States.

The people of England now rule through their representatives in Parliament as truly as the American people rule through their representatives in Congress. Thus we see that an absolute monarchy is limited in proportion to the enlightenment of

1If any state were small enough for the people to assemble and make their laws directly, a democratic government would exist.

the citizens and in time naturally gives way to a limited monarchy, as in England, or to a republic, as in France.

BIBLIOGRAPHY

DEALEY, J. Q. The Development of the State. 1919.
The State and Government. 1921

HAINES and HAINES. Principles and Problems of Government. 1921.
BRYCE, JAMES. Modern Democracies. 1921.

WILLOUGHBY AND ROGERS.

ment. 1921.

Introduction to the Problems of Govern

QUESTIONS ON THE TEXT

1. Name six stages of social and economic development.

2. Describe these six stages and explain how each developed into the other.

3. How have economic development and political development depended upon each other?

4. What stages of economic and political development have been attained by the following nations: American Indians when America was discovered? The Jews at the time of the patriarchs Abraham, Isaac, and Jacob? France during the days of feudalism? Phoenicians about 1000 B.C.? England about 1800 A.D.? The United States to-day?

The.

5. Under what conditions may the socialistic stage develop in the United States?

6. What is a state? What is a government? Distinguish clearly between a state and a government.

7. Distinguish between state and State as used in this text.

a state

QUESTIONS FOR DISCUSSION

1. The first function of the state was to protect life and property; now it provides conveniences and comforts. In the future do you think it should further encourage our sense of the esthetic or beautiful? Do you think it should prohibit billboards on a person's vacant lot if they mar the beauty of the town or landscape?

2. In 1914 Congress provided for a railroad in Alaska to be built and owned by the United States. Do you believe that the United States or your State should develop further into the coöperative stage by owning and operating railroads? Express systems? Telegraphs?