10. Further Students of Menger and Other Supporters

0:00Chapter 10. Further Students of Menger and Other Supporters With only a few exceptions, the old Austrian school was made up of members who had studied under Carl Menger directly. Eugen von Boehm-Bawerk and Friedrich von Wiese received their habilitation from Menger, although they had not studied under him. Hermann von Schulen zu Schadenhofen studied under Boehm-Bawerk and received his habilitation from him. Having independently After he arrived at an understanding of value theory and methodology similar to Menger's, Emil Sachs was the only one already to have had teaching qualifications. In his retirement application to the Ministry for Education in 1903, Menger listed all the postdoctoral students he had supervised.

0:46The only one missing was Gustav Gross. Robert Meyer, 1855-1914, Habitación in 1884. After studying law in Vienna and Berlin, the native Viennese pursued an exemplary career as a civil servant in finance administration, where he reached the position of sektionschef, that is head of directorate, the highest civil service rank within an Austrian ministry. In 1910 he was made president of the Staatische Zentralkommission, Central Commission for Statistics, and for a short time finance minister. After that he went into retirement. The year Later he was again asked to be president of the Statische Zentrale Kommission and retained this office until his death.

1:34As an expert on finance, whose teaching qualification was extended in 1887 to include political economy, Robert Mayer lectured at the University of Vienna and at other Viennese educational institutions. In his Habilitation Treatise, the subjectivist value theoretician justified progressive taxation, which he as a senior civil servant and along with Boehm-Bawerk was actually able to implement during the reform of direct personal taxation. From 1911 onward he served as co-publisher of the journal Zeitschrift für Volkswirtschaft, Sozialpolitik und Verwaltung, Journal of Economics, Social Policy and Administration. He was a champion of full-blown statism on social and economic policy matters.

2:20Gustav Gross, 1856-1935, Habilitation 1884 Originally from Reichenberg to the Liberec, Czech Republic, Gustav Gross was the son of a railway director. After studying law in Vienna and Berlin and working at the governorship of Lower Austria, he received his Habilitation with a thesis on economist Johann Heinrich Ludwig von Thunen, 1783-1850, Gross, who published a treatise on business profits and the first academic biography of Karl Marx, among other things, devoted himself primarily in later years to social and taxation questions. From 1889 onward, he was a representative of the Deutsche Fortschrittspartei, literally German Progressive Party. Gross, who considered The State, which considered himself part of a tradition established by Albert Friedrich Eberhard Schäffle and Adolf Wagner, was not mentioned in the list of habilitation students Menger compiled when he became a professor emeritus.

3:22In what he called the public sector, Gemeinwirtschaft, of the state economy, Gross saw laws at work that differed fundamentally from those in the private sector, and he supported Wagner's thesis concerning the steady expansion of the state's functions, which were, in his view, limited only by the family in the long term. What Richard S. Howey otherwise wrongly said of the less well-known Austrians, namely that they hardly wrote anything or nothing at all about the theory of marginal utility, applies to Grosz. Grosz taught as an unsalaried lecturer at the University of Vienna until 1897, and finally as an untenured professor. He was elected the last president of the monarchy's House of Representatives, when the war economy had fully expanded into central bureaucratic planning to at the end of the First World War.

4:13Eugen Filipowicz von Philipsberg, 1858-1917, Abeditation 1884. The descendant of an Austro-Bosnian family of officers, Filipowicz grew up with only one parent still living, graduated from the Theresianium Academy and studied law in Vienna. After periods of study in Berlin and London, he received his habilitation for research on the Bank of England. After a non-tenured and later a tenured professorship at the University of Freiburg, Filipowicz, who was only 35 years old at the time, was offered a position in Vienna. He was aligned to the historical ethical school on economic policy, having already strongly oriented himself toward Menger's ideas on methodological and value theoretical In 1896, as a member of the Viennese Fabian Society, a circle of those advocating ambitious social policy aims, he became a co-founder of the Sozialpolitische Partei, socio-political party. He served for one term as one of its four representatives in the Niederösterreichische Landtag, the regional parliament of Lower Austria, of which the city of Vienna was a In 1905, Filipowicz became president of the University of Vienna. In 1909, he became a

5:41member of the Herrenhaus, the House of Lords of the Austro-Hungarian monarchy. Correspondingly important was his role as promoter of the Austrian School, which he actively advanced with his successful textbook Grundriss der politischen Ökonomie, 1893, Compendium of Political Economy. For many years he acted as chairman of the Gesellschaft der Österreichischen Volkswirte and from 1904 to 1917 he was co-publisher of the Journal Zeitschrift für Volkswirtschaft, Sozialpolitik und Verwaltung, Journal of Economics, Social Policy and Administration. Victor Mataya, 1857-1934, Habilitation 1884. After a commercial apprenticeship and law studies in Vienna, Mataya, who was working for the Vienna Chamber of Commerce at the time, received the Habilitation for a thesis on ground rent and business profits. Among his diverse publications, one work in particular stands out, his trailblazing Recht des Schadenersatzes von Standpunkt der Nationalökonomie, 1889, Indemnity Rights from the Viewpoint of Economics, which prepared the way for the modern economic analysis of law on the basis of the theory of marginal utility. In 1890, Mataya became an untenured and two years later as Boehm-Bawerk's

7:02successor a tenured professor at the University of Innsbruck. Later that same year, however, He returned to Vienna to establish a department for trade statistics and labour statistics in the Ministry for Trade. In later years he was one of the first in the German-speaking world to deal with the nature of advertising, and with Die Reklame, 1910-1926, advertising created the seminal document of the modern science of advertising, to at the end of his life he published a textbook for Economic Policy, Lehrbuch für Volkswirtschaftspolitik, 1931, Textbook of Economic Policy, which included some of his own contributions. Mattia was a bureaucrat through and through. He was first a head of directorate, twice a minister of trade, 1909 and 1911, and finally President of the Statische Zentrale Kommission from 1914 to 1917 and from 1919 to 1922.

8:04By the end of the war, he had served in turn as Minister of Trade, Minister without Portfolio and Minister for Social Welfare, the first in an industrialised European nation. His statistical work made this versatile and original thinker a valued partner for representatives of Employers and Employees, the Third Camp appreciated his German-Austrian Centralism. Of all things, it was thus that the representative of the Austrian School created the core of what would later become industrial relations. Matthias' career enriched us with the remarkable insight that welfare and warfare can easily derive from the same doctrine of the State. Robert Zuckerkandl, 1856-1926, Habilitation 1886 The son of a Jewish family from Gyr, Raab, Hungary, Robert Zuckerkandl received his Habilitation from Carl Menger after finishing his law degree. Prior to his accreditation as Hof- und Gerichtsadvokat in Vienna, he published Zu Theorie des Preises, 1889, on The Theory of Price, his only monograph A Hof- und Gerichtsadvokat is a trained lawyer who is admitted to the bar as well as legitimated

9:23to act for his clients with the governmental authorities and the imperial court. In 1894 he became Emil Sachs' successor as an untenured professor alongside Friedrich von Mises at the Deutsche Universität Prag and received his tenured professorship in 1896. In 1826, Zuckerkandl's teachings, his main work, and other published articles contributed significantly to the dissemination of Austrian school ideas. Johann von Komorzinski, 1843-1911, Habilitation 1890 At the age of 26, Johann von Komorzinski was reputedly only unable to accept an appointment at the University of Vienna because of external circumstances. After working successfully as a Hof- und Gerichtsadvokat for over 20 years. Komorzinski became the founder and president of the Wiener Advokatenklub, Viennese Lawyers Club. He received his Habilitation for a paper on value theory linking it to an earlier effort on the same subject. In his later works, he resolutely opposed von Thunen's wage theory and Marx in particular, The Nationale Ökonomische Lehre vom Gredit, 1903, The Doctrine of Credit in Political Economy, which he published in the last decade of his life, was rejected by the Austrian School,

10:44as it was incompatible with Wieser's imputation theory and Boehm-Bawerk's theory of interest. Hermann von Schuhlern zu Schrattenhofen, 1861-1931, Habilitation 1889, 1892-1895 In 1889, after having practiced law, Hermann von Schuhlen zu Schadenhofen, a born Tyroles, received the Venial Agendae to teach economics at Innsbruck. A successful habilitation requires that the candidate be officially given the Venial Agendae, Latin for permission for lecturing, or the EU's Dortgendi, right of teaching, a specific academic subject at universities for a lifetime. In 1892, this permission was carried over to the University of Vienna, where in 1895 it was extended to the teaching of all aspects of political economy.

11:36He subsequently worked in the Statische Zentralkommission, Central Commission for Statistics in Vienna, and in 1899 held professorships for economics at the Technische Hochschule, University of Technology, the Hochschule für Bodenkultur, today University of Natural Resources and and Life Sciences and from 1915 on at the University of Innsbruck. From 1903 to 1905 he held the office of president at the Hochschule für Bodenkultur in Vienna and from 1922 to 1925 that of president at the University of Innsbruck. In later years Schullen zu Schattenhofen, who in his youth had still vehemently advocated The Theory of Marginal Utility turned to agricultural policy and history. His easy-to-read economics textbook Grundzüge der Volkswirtschaftslehre, 1911, Main Features of Economics, is founded on the subjectivist theory of value.

12:36Julius Landesberger, 1865-1920, Habilitation 1895 He completed his law studies at the University of Vienna in 1889 with a doctorate for which Subaus Species Imperatoris

13:18After being bestowed with the title von Antburg in 1906, he was appointed to the General Council of the Anglo-Österreichische Bank, where he rose to the position of President. At the German Juristentag, a convention of lawyers of 1902, borrowing the English word concern, he coined the term Konzern, which in German is used to this day. Eugen Peter Schwedland 1863-1936, hab. 1895 Schwedland came from a scholarly Protestant family in Budapest and studied law in Vienna. After some years of having worked as a lawyer, he taught economics and economic policy at the Technologisches Gewerbemuseum from 1890 on and eventually received his hab. from the The University of Vienna, the Technologisches Gewerbemuseum, was a well-known school for higher education, college, focused on the promotion of science and industry.

14:18In 1902 he was made an untenured professor at the University and in 1904 a tenured professor at the Technische Hochschule. From 1908 to 1921 he functioned as a high-ranking advisor in the Ministry of Public Works and in the General Commission for War Economy and Transition Economy. In his easily readable textbooks, he described the subjectivist value theory as the psychological foundation of the economy. He kept his distance from Menger, both personally and intellectually. After the First World War, Switzerland shifted to its romantic organic economics. Siegmund Feidelborgen, 1858-1928, Habilitation 1895 The son of a Moravian rabbi family, Siegmund Feidelborgen completed his law degree in Vienna and in the early 1890s made a name for himself with several works on Adam Smith, Jacques Turgot and David Hume.

15:18In 1895 he received his Habilitation from the University of Vienna and subsequently Founded in 1898 in order to provide professional training to future businessmen, in the import and export business in particular, it became today's Vienna University of Economics and Business, the largest university focusing on business and economics in Europe in terms of enrolment. Initially, Feilbogen also supported the Zionist movement. A peculiar story ended his career abruptly. On April 9, 1908, Feilborgen, along with his wife and sister-in-law, attended an Easter Mass celebrated by Pope Pius X in Rome. Witnesses apparently observed Feilborgen disposing of the consecrated host in a handkerchief. This incident became widely known. Feilborgen's assurances and avowals of respect for the The Catholic Church fell on deaf ears in a Vienna turned noticeably anti-Semitic. He was subsequently dismissed from his position as teacher at the Export Academy. Isolated and virtually ostracised, he continued to teach to the smallest of audiences at the University of Vienna.

16:34Rudolf Sieghart, 1866, 1934, Habilitation 1900 A rabbi's son from Tropau, present-day Opava, Czech Republic, Rudolf Sieghart, with only one parent living, had to pay to study law in Vienna himself. In 1895 he converted to Catholicism, married the daughter of Karl Samuel Grünhut, 1844-1929, a professor for of Trade Law at the University of Vienna and joined the Finance Ministry. With his treatise on public gambling, the Öffentlichen Glücksspieler 1899, Sieghard earned his Habilitation and subsequently went into politics. As the closest associate of Prime Minister Kerber 1850-1919, he played a powerful and sometimes controversial role, particularly in regard to personnel decisions concerning top-level positions in the bureaucracy.

17:31In 1912 he became a member of the Herrenhaus and, as governor of the Bodenkreditanstalt with its associated industrial concerns and newspapers, remained an influential leader in the business world well on into the First Austrian Republic. Richard Schiller, 1870-1972, Habilitation 1903 Carl Menger's favourite pupil and last post-doctoral student Richard Schiller came from a Jewish with Schutzzoll und Freihandel, 1905, protective tariff and free trade, he had last received his habilitation and was thus the first of the Austrian School to venture into the terrain of foreign trade policy.

18:37As an untenured professor he published two noteworthy contributions on workforce demand and on the employment market. After Menger's death he supported the publication of the second edition of The Principles with a very personal foreword. Schiller made his career in the Ministry of Trade.

19:24and the Zeitschrift für Nationale Ökonomie, Journal of Economics. Nevertheless, he distanced himself noticeably from the Austrian School. Schüller was forced to emigrate to the USA in 1940, where he continued teaching until 1952. Statisticians and Economists of Public Finance Menger routinely assisted with Habitierungen in areas related to his field of expertise, as with the commercial law specialist Carl Adler 1865-1924, Habilitation in 1893, The Public Finance Economist Gustav Seidler 1858-1933, Habilitation in 1883, and The Statisticians and Public Finance Economists Isidor Singer 1857-1927, Habilitation in 1885, Ernst Mischler 1857-1912, Habilitation 1885 in Prague, 1887 in Vienna, and Injatz Goldberg, 1842-1919, Habitatsion in 1893. These practitioners and university lecturers had no direct influence on the teaching body of the Austrian School, but they shaped the intellectual milieu of the Austrian School inasmuch as they reinforced proximity to the state bureaucracy. Since each of his postdoctoral students was required to spend some years in actual administration, Menger himself had promoted institutional closeness between Between Political Economy and State Bureaucracy Students of Menger as Contributors to Professional Journals

21:00In the 1880s and 1890s, Carl Menger also brought people into his seminar who had graduated and were already employed and interested in economics. Many of them later played a part in disseminating the teachings of the Austrian School by publishing articles in professional journals. One of the most outstanding of these students was the Hungarian-born Julius Friedrich Gans von Ludassey, 1858-1922, who, as editor of various papers, regularly reviewed economics books and himself wrote an impressive, methodological work of over 1,000 pages called Die wirtschaftliche Energie, 1893, The Economic Energy. Noteworthy are his early criticisms of the mechanical image of homo economicus, and his conclusion that economics is the science of action.

21:49Ludwig von Mises, without ever referring to Ludacie explicitly, would further develop this action-oriented approach five decades later. Another professional editor from the milieu of Menger's circle was the native-born Czech Franz Kuhl 1862-1914, who, like Ludacie, is largely forgotten today. The lawyer and Royal Imperial Government councillor in Vienna constructed one of the first mechanical calculators and published an extensive work on needs in which he defined 29 categories of needs, with altogether 73 further sub-categories. In his biography of Menger, Friedrich A. von Hayek identified a further group of Menger students. Only the following, however, as publishers of professional journals are mentioned here, Lloyd Stoop, 1865-1928, who from 1891 was the editor for economics at the Neue Freie Presse, Richard Reich, 1866-1938, a finance lawyer with Habilitation, who in the first Austrian Republic was the president of the Austrian National Bank, Markus Ettinger, attorney for cartel, competition and economic administration law, and the first to predict the failure of any centrally planned economy on grounds that only the market price is a reliable regulator.

23:09Wilhelm Rosenberg, 1869-1923, lawyer and expert on banking and finance who was credited with stabilizing the currency after the First World War, Hermann Schwarzwald, 1871-1939, highest ranking civil servant in the Ministry of Finance and author of several articles on Currency and Economic Policy, and Ernst Zeidler, 1862-1931, who applied the principle of marginal utility to the sentencing of criminals in a ground-breaking paper. As professor for public law, he tutored the heir to the throne, Carl, and in 1917 became minister and subsequently prime minister, or rather the last chairman of the monarch's cabinet. Others mentioned by Hayek either never published anything of significance, were no longer grounded in the Austrian School, or were successful as scientists in other areas, such as Christian Richard Thurnwald, 1869-1954, who devoted himself to ethnology permanently.