MEMORANDUM

Hotelling, two prominent members of the Econometric Society were both favorably
impressed and suggested that the paper be submitted to Econometrica. The editorial office
of Econometrica in USA was in fact in Colorado Springs. Leontief’s manuscript arrived on
the assistant manager’s desk on 12 July, 1935 and on the same day he also received the
latest issue of the Review of Economic Studies with an article by Hans Staehle on the theory
of price indexes (Staehle 1935). The two articles seemed to Nelson to overlap in content
and he vented his quandary to Frisch:
“In running through Staehle’s article, I find no reference to Leontief’s work. A
rather delicate situation thus arises. In the circumstances, I am sure you will wish to
go through both articles carefully yourself in order to arrive at some judgment as to
the independent value of Leontief’s paper. If Staehle and Leontief both have
reached new conclusions, then, of course, publication of the report of the Colorado
Springs meeting will give Leontief some priority. If Staehle seems to have
appropriated Leontief’s material without acknowledgement, an awkward situation
emerges. I am, therefore, referring the whole matter to you.” (Nelson to Frisch, 7
July 1935).
Frisch responded after studying Leontief’s paper:
“I find Leontief’s paper very interesting. It is accepted for publication in
Econometrica. In view of the appearance of Staehle’s paper, I have as Editor
appended a footnote to the MS, … I think it is fair to give this information in order
to protect Leontief’s priority. … In view of the delicate situation regarding this MS
I have preferred not to do any editing at all. If there are verbal or other slight
changes or condensation which you as Assistant Editor would suggest, please
communicate direct with Leontief. Please also try to get this in an early issue,
preferably the January issue.” (Frisch to Nelson, 9 Sept. 1935).
The footnote was shortened and revised by Leontief who had spoken with Schumpeter
about it. It appeared as follows: 223
“This article was completed more than a year ago. In the fall of 1933 it was
communicated to professor Schumpeter’s Discussion Group at Harvard and on
June 24, 1935 it was presented at the meeting of the Econometric Society in
Colorado Springs. The June 1935 issue of the Review of Economic Studies
contains a paper in Index Numbers by Dr. Hans Staehle in which the treatment of
223 Leontief to Frisch, 3 Nov. 1935; Leontief to Nelson, 3 Nov. 1935.
102