ABSTRACT
When we devote our attention to the development of economic theory in the German-speaking countries in the first quarter of the twentieth century and especially to the comprehensive systems which were then produced, we are at once struck by the treatise of Gustav Schmoller which stands as a symbol of the new age. The publication of this work, 1 the fruit of long experience, was epoch-making. Not that it showed the way to anything new; it represented rather the high-water mark which the historical school had reached. When Schmoller started upon his work, the authority of his school was almost unquestioned in Germany, and it still remained strong at the time of its publication. The author's fame and the inadequacy of previous works on the same subject were sufficient to arouse the greatest curiosity. The founder of the older historical school, Roscher, could never free himself completely from classicism, whether in his treatise or in his later text books. Neither Hildebrand nor Knies wrote a comprehensive treatise. Kautz and Cohn were more complete; but while the former modestly suppressed his personality and any original contributions the latter allowed his philosophical and ethical ideas to prevail over strictly economic considerations. Thus, when the historical school was in power it possessed no general survey of its doctrines. At last this was accomplished by Schmoller.
