Westward as much as Southward and in its wake has followed a flood of

capital. The increase of population and capital is necessary to the

industrial growth of the South, and in spite of the recent influx the

scarcity of laborers remains a serious problem, the solution of which is

absolutely necessary for the development of the manufacturing industries

as well as agriculture. Immigrants of good standing are constantly

sought by the States, and to cope with the problem some individuals have

been guilty of operating a system of peonage. Lack of efficiency in the

laborers makes the problem still more perplexing. Scientific

investigations conducted with the aim of discovering the causes for this