Edward Owen Giblin Shann (30 April 1884 – 23 May 1935, often written as E. O. G. Shann) was an Australian
economist
An economist is a professional and practitioner in the social sciences, social science discipline of economics.
The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this ...
and historian. At a time when Australia's dominant economic philosophy favoured protectionist tariffs, Shann championed a more liberal approach. He is perhaps best remembered for his prediction of the
Great Depression
The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
based on an analysis of similarities between the economic climate of the late 1880s and that of the late 1920s, for his involvement in the development of the
University of Western Australia
The University of Western Australia (UWA) is a public research university in the Australian state of Western Australia. The university's main campus is in Perth, the state capital, with a secondary campus in Albany, Western Australia, Albany an ...
, and for his numerous works on economics and the defence of free trade.
Early life and education
Shann was born in 1884 in
Hobart
Hobart ( ; Nuennonne/Palawa kani: ''nipaluna'') is the capital and most populous city of the Australian island state of Tasmania. Home to almost half of all Tasmanians, it is the least-populated Australian state capital city, and second-small ...
,
Tasmania
)
, nickname =
, image_map = Tasmania in Australia.svg
, map_caption = Location of Tasmania in AustraliaCoordinates:
, subdivision_type = Country
, subdi ...
to Frank and Frances Shann, and was the youngest of four children.
The family relocated to
Victoria in the late 1880s following the departure of his mother.
The 1890s in Australia were characterized by a
serious economic depression, and the Shann family suffered great financial difficulty during this time.
Nonetheless Edward was able to attend
Wesley College and later
Queen's College,
University of Melbourne
The University of Melbourne is a public research university located in Melbourne, Australia. Founded in 1853, it is Australia's second oldest university and the oldest in Victoria. Its main campus is located in Parkville, an inner suburb nor ...
thanks to scholarships and the support of his brother Frank.
Shann was a polymath and explored many different fields of study, but specialized in history and political economy.
He graduated with a Bachelor of Arts with first class honours in these fields at the top of his class in 1904.
Later life and career
Following his graduation in 1904 he taught briefly at his alma mater, as a temporary lecturer in constitutional history.
Apart from a brief stint as acting professor of philosophy at the
University of Adelaide
The University of Adelaide (informally Adelaide University) is a public research university located in Adelaide, South Australia. Established in 1874, it is the third-oldest university in Australia. The university's main campus is located on N ...
in 1906, a posting he apparently regretted, he would lecture in Melbourne until his departure for the
London School of Economics
, mottoeng = To understand the causes of things
, established =
, type = Public research university
, endowment = £240.8 million (2021)
, budget = £391.1 millio ...
.
In September 1908 he left Australia to attend the LSE where he intended to pursue a D.Sc., although his studies would ultimately be cut short due to illness.
While there he studied French
syndicalism and was influenced by the
Fabian Society and prominent British
socialists
Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the eco ...
such as
George Bernard Shaw
George Bernard Shaw (26 July 1856 – 2 November 1950), known at his insistence simply as Bernard Shaw, was an Irish playwright, critic, polemicist and political activist. His influence on Western theatre, culture and politics extended from ...
and
Sidney Webb
Sidney James Webb, 1st Baron Passfield, (13 July 1859 – 13 October 1947) was a British socialist, economist and reformer, who co-founded the London School of Economics. He was an early member of the Fabian Society in 1884, joining, like Geo ...
and
Beatrice Webb
Martha Beatrice Webb, Baroness Passfield, (née Potter; 22 January 1858 – 30 April 1943) was an English sociologist, economist, socialist, labour historian and social reformer. It was Webb who coined the term ''collective bargaining''. She ...
, whom he came to know personally.
He would return to Melbourne a believer in rational socialism but this flirtation was ultimately short-lived.
In 1910 he returned from London and resumed work as a lecturer.
He was offered the chair of political science at the
University of Peking
Peking University (PKU; ) is a public research university in Beijing, China. The university is funded by the Ministry of Education.
Peking University was established as the Imperial University of Peking in 1898 when it received its royal charter ...
that same year, which he declined; in 1911 he accepted a position as lecturer in charge of history and economics at the University of Queensland.
He would remain there through 1912.
Throughout this period he supported Liberal politician
Donald Mackinnon
Donald Mackinnon (29 September 1859 – 25 April 1932) was an Australian politician.
Early life
Born at Marida Yallock near Boorcan in Victoria to grazier David Mackinnon and Jane Kinross, both Scottish-born, he was educated at Geelong ...
and served as his political secretary.
![UWA Sundail](https://upload.wikimedia.org/wikipedia/commons/b/b3/UWA_Sundail.jpg)
In 1913 he became foundation professor of history at the newly founded
University of Western Australia
The University of Western Australia (UWA) is a public research university in the Australian state of Western Australia. The university's main campus is in Perth, the state capital, with a secondary campus in Albany, Western Australia, Albany an ...
in
Perth
Perth is the capital and largest city of the Australian state of Western Australia. It is the fourth most populous city in Australia and Oceania, with a population of 2.1 million (80% of the state) living in Greater Perth in 2020. Perth is ...
.
He would become closely affiliated with the University and its development, serving as its vice-chancellor from 1921–23.
His legacy at UWA is commemorated by the Shann memorial lecture (held there annually since 1961) as well as a memorial sundial and seat erected in 1937 in his honour in the sunken gardens on the campus.
In 1930 he was hired as the
Bank of New South Wales' economic consultant, a full-time position in
Sydney
Sydney ( ) is the capital city of the state of New South Wales, and the most populous city in both Australia and Oceania. Located on Australia's east coast, the metropolis surrounds Sydney Harbour and extends about towards the Blue Mountain ...
.
This was the first time that such a position had been filled by an actual economist in Australia; Shann established an economics department at the bank and advised it on economic issues relevant to it.
He held this position for three years, during which time he became active in an economic advisory capacity to the Australian government. To this end in 1931 he joined the Copland Committee which helped to formulate the
Premiers' Plan to combat the great depression; in 1932 he assisted Sir Wallace Bruce's committee on unemployment; in 1932 he advised the government at the
Ottawa Conference
The British Empire Economic Conference (also known as the Imperial Economic Conference or Ottawa Conference) was a 1932 conference of British colonies and dominions held to discuss the Great Depression. It was held between 21 July and 20 August ...
and again in 1933 at the
London Economic Conference
The London Economic Conference was a meeting of representatives of 66 nations from June 12 to July 27, 1933 at the Geological Museum in London. Its purpose was to win agreement on measures to fight the Great Depression, revive international trade, ...
.
In all of these roles he emerged as a strong proponent of free trade and flexible markets and against expansionary fiscal policy.
In 1933 he accepted the chair of economics at the University of Adelaide, although he remained at UWA through 1934.
This would be his final appointment before his death in 1935.
Economic positions
Edward Shann was a
classical liberal, and defended free trade and open markets at a time when Australia favoured protectionist trade policy and tariffs.
Shann famously predicted the
Great Depression
The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
in his 1927 essay, ''The Boom of 1890 – and now'', in which he likened the economic conditions of the late 1880s to those of the late 1920s, warning that a similarly dire economic decline might follow for similar reasons.
His seminal work, 1930's ''An Economic History of Australia'', is still a very well regarded reference to Australia's economic policies and institutions from the late 19th century into the early 20th.
He wrote prolifically on the subject of economics, always advancing a liberal position.
His collection of essays, ''Bond or Free?'', juxtapose economic liberalism against paternal protectionism and, as in the title, ask whether Australians should prefer bondage or freedom.
In this work he came out in opposition to more public works, and in this as well as in his vocal opposition to countercyclical fiscal policy he fell decidedly outside of the
Keynesian mould that gained popularity during the depression years.
Personal life
Edward Shann married Alice Eddie in 1911 in Melbourne, and together they had three daughters.
One, Marjorie, later married one of Shann's more prominent students,
Arthur Tange
Sir Arthur Harold Tange (18 August 1914 – 10 May 2001) was a prominent Australian senior public servant of the middle to late 20th century.
A considerable intellect, he was one of the most influential people in the government of Australia f ...
.
Death
Shann's death was and remains the subject of some controversy.
He was found dead on the footpath outside of his first-floor office window at the
University of Adelaide
The University of Adelaide (informally Adelaide University) is a public research university located in Adelaide, South Australia. Established in 1874, it is the third-oldest university in Australia. The university's main campus is located on N ...
, from which he had apparently fallen. This was ruled a suicide by the coroner.
This explanation has always been controversial: even at the time, some of his contemporaries suggested foul play.
Later analyses suggest that while suicide was perhaps not the correct explanation, foul play probably wasn't either.
Rather, it suggests that his death was probably accidental: Shann, who had suffered from nervousness throughout his life, often felt faint, and when such an episode was upon him he would tend to rush to fresh air.
He had indeed complained of faintness the day of his death and had delivered a lecture sitting down, unusually for him.
In a previous episode, described by his brother in a letter, Shann had hurt his finger and then rushed to the window for some fresh air; upon opening the window he collapsed and nearly fell out.
Similarly,
Keith Hancock wrote in a letter that Shann had told him he had been feeling faint, and related that he would often open a window to get some fresh air and then lose his balance.
Unfortunately, these letters only surfaced after the coroner had pronounced the death a suicide.
In light of them it now seems more likely that Shann had a similar episode, opened his window, and, feeling faint, simply fell out.
Bibliography
* ''
Cattle Chosen
Cattle (''Bos taurus'') are large, domesticated, cloven-hooved, herbivores. They are a prominent modern member of the subfamily Bovinae and the most widespread species of the genus ''Bos''. Adult females are referred to as cows and adult mal ...
'' (1926)
* ''The Boom of 1890 – and now'' (1927)
* ''An Economic History of Australia'' (1930)
* ''Bond or Free?'' (1930)
* ''The Crisis in Australian Finance'' (1931)
* ''The Battle of the Plans'' (1931)
* ''The Australian Price Structure'' (1933)
* ''Quotas or Stable Money?'' (1933)
References
External links
*
Bond or Free?' at
HathiTrust
HathiTrust Digital Library is a large-scale collaborative repository of digital content from research libraries including content digitized via Google Books and the Internet Archive digitization initiatives, as well as content digitized locally ...
Digital Library
*
An Economic History of Australia' at
Project Gutenberg
Project Gutenberg (PG) is a Virtual volunteering, volunteer effort to digitize and archive cultural works, as well as to "encourage the creation and distribution of eBooks."
It was founded in 1971 by American writer Michael S. Hart and is the ...
{{DEFAULTSORT:Shann, Edward
1884 births
1935 deaths
Australian economists
20th-century Australian historians