The flurry of British investment in American manufacturing industry from 1887 to 1891 was viewed with alarm, particularly in the West. At this time the farmer was preoccupied with the economic power of monopolistic industries and trusts, and so die British investor became deeply involved in this phase of the agrarian battle. In the past, capital from die United Kingdom had entered industrial concerns, chiefly railroads, without wresting the management out of American hands. More recently British investors had been building up and controlling dieir own enterprises in the West. Now, well-established and profitable American businesses were bought and directed from Britain. The farmer regarded this unaccustomed interest in American industrials either as a step toward die formation of great monopolies, or, even worse, as part of an imperialistic design conceived by London bankers to enslave the American people.

On this occasion it seems wise to take a leaf from Wassily W. Leontief's book as President of the American Economic Association. He discussed a problem of his organization. His presidential address was a plea for economists to limit their creation of models, especially those difficult of empirical testing, and to test some of those susceptible of verification. My remarks will also deal with a problem, one in the Economic History Association, how it came about, and what we might do about it.