In responding to Mr. Dennen, I welcome the opportunity to clarify several points that may have been misunderstood by the readers of this Journal. Mr. Dennen makes three main criticisms, which I will deal with in the order he raised them.

In a recent article in this Journal David Galenson presents an interesting hypothesis about the impact of changing relative prices on the cattle driving industry in the late nineteenth-century West. Briefly, he argues that movements of.cattle prices in the urban marketing centers relative to the local prices in the range areas affected the profitability of the industry and thus the quantity of cattle driven north from Texas. Unfortunately, in testing his hypothesis, Mr. Galenson has incorrectly interpreted the history of the southern Great Plains.

A radical shift in the industrial composition of investment and final demand played an important role in delaying a complete recovery from the trough of 1932. Under the conditions of technological discovery prevailing in the 1930s, this shift in the composition of demand made full employment virtually impossible to achieve as recovery from the crash got under way. A complete recovery required a mass of interrelated new techniques and human and physical capital which, in the timid financial environment prevailing after 1929 (and given the uncertainties of the New Deal), could not be organized on the necessary scale by private investment markets. These findings pose a new agenda for research on the political economy of the New Deal and on the economic history of the post-World War II era.

Our conference today on comparative economic history is in some clanger of rushing into the wide-open spaces of ambiguity, for the term is new, and to agree too quickly on its meaning and implications may not even be desirable. In order to avoid engaging in a mere game of definitions, this paper will deal first with three general types of comparison in relation to their bearing on problems of evidence. It will then review some of the chief uses to which these types of comparison have been put in building up our body of knowledge about Western economic history. The survey will close with particular reference to our own preindustrial stages of economic growth, when western Europe was, in our uncomplimentary phrase, an underdeveloped or backward area.