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York the pemiiasion of the Author.Tke Meaning Business " of OR- Tbe Science of Service By Transfw Published by Tke American of With Credit-Inclcmmty New Co. .

New of York .Copyrighted 1918 by Tte American Credit-Indemnity Co.

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or The Science as this of of Service. following causes to their is a very the pursuit of wealth. Additional copies may although only a limited supply has been printed. reading it." Political Economy Successful or simple exposition of Scientific Service. CREDIT HOME OFFICE . upon request.THE Economics. President E. and Essay on the Meaning Business. other Political Economists. The seem dull and ponderous by subject. as a ESSAY or BEGINS ON PAGE is viewed 9 Political Economy. THE Of New AMERICAN York - CREDIT-INDEMNITY - CO. _ ST. We feel confident you will find pleasure and profit in be had. that some Political Economists reason to have the notion that they are writing always to generally Professors. LOUIS. MO. of rare had an publish who has unusually successful career. tellsso simply what efficiency is. we it for complimentary distribution. M.except doubtless is. It was written by a man attainments. and thus sacrifice simplicity and clearness for "scientific analyses. TREAT. INSURANCE . . effectsupon As efficiencyof service is the measure of success. 1918 .

thing unuseful to is to fail. what people need. enough to understand what they The man who understands that he must serve thrivewill know what to do and what not to do.People must have sense do and why they do it. man man can No help himselfithout helping others. do a in order to thing useful is Do what the community needs to have done. in abundance. A wise makes what he sellsand buys what he needs. The thing to do is to make. To do an to thrive. profitable . w Business is a beneficence.

The in percentage those engaged of failures among disaster of any sort. a changes. crop competition. losses on sales are inevitable. He justifies prosperity the of those engaged in making or distributing goods by showing the contribution of each to the general welfare. objectof the writer of |HE by this pamphlet was to thrive mutual service and not show that men by mutual spoliation. speculation. and sudden derangement from any cause a tide arrest may of commercial affairs of if variabl le.neglect of business. Mortality in business is constant. any endorsing shocking for others. seasonal failures. violent fall in prices. The seller capital and credit rely in marketing his goods upon be so accurate of things cannot ratings which in the nature ing. The problems of business are numerous The seller and buyer seldom stand face must to and perplexing. a and however efficient credit department may liabilities be. Failures are due to all sorts of causes: to inexperience. American Credit-Indemnity Company The accepts the and offers for the challenge conveyed by his argument the following vindication of consideration of business men its usefulness. The aggregate A buyer may be prosperous of firms which have become bankrupt in a single decade to m the United States have amounted about two billion three hundred million dollars. face. false credit. The unexpected is always happentoday and bankrupt tomorrow. any 5 .CREDIT ITS SERVICE INSURANCE. prosperity. as to preclude mistakes. over-buying. fraud. or a commercial or crisis. insufficient capital. extravagance. TO BUSINESS.

business is greater man than to the mortaUty guard among men. We help the credit department 6 to under- . enough a against all the risks which he Because American assume must merchant Company Credit. it replies that its a and contain period of twenty-five years records cover ness. what the loss is on credit ratings A. businot the experience of one merchant engaged in one customers. company to mercantile affairs a stability and lack. but the experience of many engaged in allsorts of business in The thousands of merchants every part of the country. It helps to reduce his normal loss. the organized for his protection. and thereby gives mass a of and it affords to him in his business. It has sifted these records and of from them derived useful information with respect to the causes of various failures at various times under various From it has derived experience them circumstances. B. No is wise must assume. and all others. sell goods him where he is likely to lose and where wisely. claims filed with it growing out of unpaid accounts more aggregate since its business was established now than two billions dollars. tables which show the actual risks in selling. it it assists with helps his credit department. by telling he is relativelysafe. security which otherwise they must to It helps the merchant It does more.Indemnity these was risks. past-due quent it obviates friction between him and his delinaccounts. The average are premiums of the company adjusted to these risks. and by the emphasis of the charge upon against each. we warn the greater risks. losses incurred its bond in excess The on for all affords indemnity by goods sold within the period covered of those which are normal and expected. information which he will find of great use If you ask how it does these things.

among those who our and same instructions of proportion. The average business mortality is about ten thousand in each million. We mitigate to the friction which results from an attempt enforce the by intervening between collection of an overdue account and his customer. by we losses be more and showing the merchant where his help all business by compelling it to prudent where prudence is requisite. comply with the terms policy it will be reduced in the operated under the collection department due provisions of the policy. form the unexpected. In a single year we loss and ourselves against have so collected many thousands of dollars which our policy-holderswere unable to collect. We instantly proceed to collect under our within a these accounts as soon as of the customer possible. the merchant " We carry into business a promise of indemnity against thereby afford comfort and serenity and security at a cost which is far less than the benefit We perconferred and far less than the losses avoided. and in fact for commerce military discipline does the same for young sort men. of service that The average between twenty-one men mortality among and thirty-one is eight thousand in a million each year. and in this manner liability. reduce the merand we chant's not normal loss by collecting in time after but before failure. and before the embarrassment has become too serious to be we protect the seller against coped with . in the army it is expected to be within four to six thousand in a million. which provides that past covered accounts shall be delivered to us for collection We have a stated time.stand what occur. and we agree that the filingof such accounts shall have the effect of proving them against our liability bond. to do. We have saved them 7 .

We are gradually in payment buyers to be prompt teaching and we are is time to show the same sellers what prudent and what is imprudent selling. of New TREAT. as the writer of the pamphlet shows. in the fruitsof his benefiwe cence. offer in return less than their value and less than These who pays for we charge which is for the man save a business is also serving. share with the business man We diminish the cost of distribution. Co. Our strength and our policies show the show our derived.that much be prompt of a and at the same time and understand services it. President . We furnish a very important aid to distribution: we prevent attempting at diminish loss. we because we help both producer and consumer of goods. Business. are service from which those resources We do a general good and a special good. data which are numerous conupon stantly reliable and very Our sifted for resources information and suggestion. concerns itself with the making and distribution of goods. and our serving is not but a scientific service based capricious and unintelligent. M. and indemnify against loss. we " The American Credit-Indemnity York By E. waste. we to helped their customers the sanctity and binding effect promise.

it. justify encroach- HE I peace we we tolerate manners and approve accustomed to them. some less. save even at the cost should be rich can man explain how one of his neighbors. Some men have more. respect bad. Among the institutions of society. capital. we men of wealth. Civilization today wrong. but cannot its ments. none is harder to attacked and none private property. understand and institutions not but because them is because we are more frequently defend. or use the words the same taxes. If they are or good. but cannot always vindicate it. no or in a vague and or two thing. but the connection between tradition and experience is not We perceive the always evident. Men co-operate to produce rests upon private property. cannot tell why nor this and that man become rich we poor. they should right should be agree wrong. than cannot who think it is indispensable but we We have no answer explain why. ready for him distribution of uneven questions the justice of an We we wealth.The Meaning OR " of Business The Science of Service and good will of society depend upon tradition. value of marriage. and that tradition upon experience. sense we or wages. if they are they should be got rid of. Why? Q . Yet They are to these things. When man or speak mean profit. we feel the need for a State. so with good clearly as justified to convince those who are perplexed.

Politicaleconomy For some reason. and what it says helpful. It is not and does not pretend to be a moral science. Each special experience. Men itselfwith such problems. with the production of wealth and its distribution. many very able why so led to useful an instruction is disregarded and have been has no time to give to the refined believe that the busy man he deems theoretical and discriminating thinking of one whom and and sophistical. At the outset 1 must say a few words in explanation of the objectsand pretensions of the science. It observes.as that it concerns its and few attend to science and the gospel of selfishness. and this essay is the result of that consideration. curred I might extract from the literature of to me that economy certain of its salient and most political useful are We too impatient doctrines and translate them into language which should be intelligibleo every t man. every peculiar vision and a quite understand the word is freighted with experience and that experience is shared by those who use it. It assumes nothing. It does not teach dut inculcate philanthropy. it has fallen into difficult is a dismal say witty things of it. nor itselfwith concern the benevolent and most worthy motives of private conduct. I have tried to understand is interesting neither parlance. disrepute. Yet it has occupied the thought and time of gible: Its doctrine is simple and intellimen. instruction. express and fix a notion which is peculiar to him- It ocfor such instruction. In common and has can a it deals with familiar facts. The economist begins by inventing new words political into a strange significancein order that or ones twisting old he may self. other. and y nor 10 . analyzes and It deals with known explains. to discover. with that which do in order that they may men live. It is concerned with business only.

Each depends upon other: the maker upon buyer. tanners he sells. and the labor the of all is a co-operative labor. The prosperity of one man does not are goods of another. A vast purpose majority differin character and capacity. All are engaged either in the production or distribution of wealth. We . another interest. bankers and brokers.what he needs he buys. one get and exchanges where we In some have. each intent on his own of them affairs. are the facts with which it is concerned? This is a busy world. work continually. to work seems special work. Its value is found in the broadness of its view. it offers one which is consistent with all of them. well as effect. There is work for everybody willing to work. It considers fact only. what we need and dispose of what we manner the right articlesare brought forward in the right quantities. Somehow. attempts to then exception and rule. and no need of a luxurious people remains unsatisfied. the borrower on or the consumer. the seller upon the to co-operative each in accordance grown up the lender. but every related fact: effect as one not cause as well as cause. Men move to and fro incessantly. we themselves into groups: chants and shoemakers. Trade is everywhere. What one makes miners They and blacksmiths. have farmers and millers.familiar facts. What and consequence. If it offers an explanation of those facts. they have divided and perform various labors. use and function. merand carriers. but everybody for somebody else. Poor people 11 diminish the continually forging to seem to . each of whom does some No one for himself. and show their mutual relationship and influence. The product of a joint labor is distributed in a conventional way with us: some rule or practice which has among profits and another have established markets receiving wages.

If they thrived. if he sells. The that favorable locality.a change was hunter became the herder. as that all men and selfish. is confacts political economy cerned. selfish the sense for pay. Riches are soon but because we choose to do so: yet by because we must his work the individual seeks not another's good but his in Everybody seems that his motive own. population increased in this When occupation. how has it allowing the operation of this motive served to bring about the co-operative organization of industry which we now and free: observe? Men are selfish what influence has bound them to mutual service? Let us begin at the beginning and endeavor to trace the evolution of industry.he he serves is selfish. others envied them and disorder ensued which compelled the adoption of means of defense. the co-operative character of all industry. inevitable. Society as we know it is rather barbarians were a growth than a creation. So places of refuge were established and in the course of 12 . and after a time settlements were formed which prospered or languished according to the or habits of the people and the resources they of the country inhabited. to settle neither social. wealth. We co-operate not the front. labor. Our ancestors compelled who moved about in search of food until they were They had by stress of circumstances. Assuming. If he serves. and fruits were industrial organization of any by abundant. facts which confront us: sells for profit.politicalnor Game sort. free play. and every man their serious slight exertion might have enough. These are the division of the spontaneous the selfishnessof mankind. the the unequal distribution of mutual dependence of men. War was however.dissipated. and with these What is its explanation? are it must. the gatherer of wild fruits the cultivator of the soil.

while the needs of the country-man. Practice makes can more in a given can perfect. he set himself Observing the to advantages of a divided labor became evident. Where therefore A makes shoes shoes in the same only and B hats only. the daily product of their divided 13 . Let us understand this result clearly. the en- circled In the light of history it is evident that selfishmen because they found began and continued to co-operate co-operation to be advantageous to themselves. other manner. or dressing leather. he will be enabled by the practice pair of shoes in one of one or other trade to make three hats or three pairs of time. Little states and communibegan to trade with each other. and to meet constant stress these new time conditions industry had town was unable to earn to be modified. and order was ties extended farther and farther. The South traded with the North. Men forced into closer union and mutual dependence by were from without. If a man make a hat and a day. No man be good at all trades. East with the West. castles. They got for themselves by producing goods for others than they could get by working for themselves only. Better the results of acquired clothing and better leather were skill. The skilledworkman produce more can time than the unskilled. being relieved from the trouble of grain.and the farmer.or these places became walled towns. or weaving cloth. produced more therefore thrived and increased in power. each availing itself of its own resources and devoting its energies to the work it could do best. Communities making these things. and the argosies of commerce the known world. and these products In a little he exchanged for what he wanted. Its explanation is simple. The dweller in a therefore produce his food and was to some compelled it in making tools.

no allow them freedom because we Try as they may.labor should be three pairs of shoes and three hats as hats. to the artisans according accident of were forced away from slavery into the system which now men are prevails. do what seemed advantageous forced to fight and some to their masters. Meaning to work for themselves alone. Where efficient 14 . and therefore encourages they The must work for others. and therefore compelled each to follow the they were compelled to trade of his ancestor. men serfs birth. Society is as selfishas the individuals it. by co-operating they cannot thrive save with their fellows. trade it is beneficial precisely in proportion to the increased product resulting from a divided industry. we villeinsor In the cities guilds were the law of England. into co-operation. By exchanging a against two pairs of shoes and two hat for a pair of shoes each will have what he needs and a to use hat or a pair of shoes besides. some were furnish food. who compose It will not let any man It thrive who will not serve. evolution of a co-operative industry is inevitable. in the course of a long period of time. Today constrained by economic laws. Selfishnesspushed men inexorable. Specialization without trade with other wants. The Romans to that the state assumed man the choice of his could not safely leave to every occupation. which he may gratify is fruitless. be a blacksmith. We longer fear it. By or A blacksmith's son was bound to leges established and exclusive priviwere them in order to encourage conferred upon Slowly and unconsciously crafts deemed useful to the state. labor and discourages inefficient. Men seemed free but they was Formerly Its influence were not so. as the result rather were of the stress than the instruction of experience. depends upon labor for all that it needs.

diversified industry is. more Kansas New is a manufacturing England community. Where no . industry would fall into decay. he does and its punishment in the same trade. but the man may selfish be worth to the community more than the cost goods must be wasted. be less than the price paid for them in order goods must can two are engaged in the same business and one can be induced to make them. which Money distributes goods. The merchant consumer must still of goods: he knows where they are cheap The and where dear. not may of making. Trade. A merchant transports grain to the manufacturer and shoes and clothing to the farmer.produce easily and cheaply and the other with difficultyand at he great cost. he who offers goods at several engage the lowest price is preferred to him who charges more. the greater the need of trade. and in order be familiar with the needs of each to do so profitably must depends upon his intelligence. The cost of correction. is guided by like influenc does not obviate all the inconveniences the producer and of trade. is the marketer raises corn. and so by its discriminating buying society compels effithe community 15 good to is relentless. that a rather than a producer of goods. If he locality. where abundant and where scarce. So it encourages If it were for this not the other. by buying from him. the former is more useful to the community: him. His success carries dear goods to a cheap market. has wasted two dollars and hurt both himself and others. Competition and the selfishness the community of by continually operating against inefficient prevent this waste a He has in fact become consumer labor. in order that its resources He who spends ten dollars in making goods worth eight. and discourages sell for less. for notwithstanding its use be brought together.

but their prosperity depends the need for and efficiencyof their service. Trade like production is regulated law of supply and demand and controlled by competition. manufacturing choose their own or trade as they prefer.tion brings about an advantageous distribuby the of goods. goods and therefore promotes It is not only profitable to the worker and the community. it is because men zeal and in industry and that rewards are apportioned in such to encourage manner as the best rather than the worst sort 16 . stimulates industry by rewarding it. that we should yield the If the system does involve an distribution of uneven accept of our own in intelligence. so motes proand the welfare of the individual.is the origin and evolution of present plan for distributing the work of the world and rewarding industry.and we willbe apt to accept them without repining ifwe remember are that the needs of the community paramount and better job to the better man. render a needed service and allof those engaged in it must in order to thrive. and under its constant do best. It tends also to cheap production and justdistribution of the right sorts of the welfare of the community. since it depends upon the intelligenceas well as the selfishnessof men and theless to do all sorts of are not competent work. is forced to do what he can our stress Such in brief. by the wit of man.in vary goods. Neverall men the plan is superior to any that could be devised It allows opportunity to ability. free and indebut it is better suited to our pendent operati character than those enforced methods of coformerly tried. But being free. always upon men So Competition every man is incessant. induces thrift. we which were the consequences must infirmities. at least cost cient service and occupations. It is by no means a perfect plan.

ought to live upon an inaccessibleisland evident. corrective tyrant and indispensable. If a hundred men what they produce for existence. fact is apt particular explanation of a special instructive than a general explanato be more tion I should discuss wages. it is proper that of many. its prosperity by society.but cannot Is What law or influence fixes his wages? compensation. the director for convenience s or employer. forced to do its will and promote be evaded. it an error to pay what I have described govern that the employer cannot arbitrarily he chooses. private selfishness is comthe employe. The effectsof such a free plan upon the prosperity of be inferred from what has those engaged in industry can been said. The factors of wealth are the workman. fix his The laborer is free to choose his job. That the results of their co-operation. and the machine which may their united prosperity sake be called capital. and so is compelling influences which cannot By these laws.are the suffer under it. is the theoretical freedom which assume a myth and must one and reward according to duced which has inquestions lieat the root of the dissatisfaction the formation of unions. profitand interest.and endeavor to show how the products of a particular co-operative industry are distributed among as a Yet those engaged in it. There is no captain of industry with The employer is an humble servant of arbitrary power. pelled always to be subservient to the general good. If men demerits and are imposed not by any result of their own but by a universal law which is benign. their afflictions of service. They should be clearly another answered. their and depend upon 17 obey and his caprice? These man depends . primarily upon be upon the amount of wealth produced by it.

but unless enough is produced there will not be be enough to go round. with it he can as and but back of that law is a subtle and abiding principle which I shall presently explain. controlled by what is called the law of supply the actual production is concerned. Its actual operation is demand. Wages be fixed. the common they what and how much if If they produce Httle. How. 18 . concerned as the means within his control in which he is engaged. however the distribution may How cannot effected. So far capital is more a machine Quantity is of firstimportance.prosperity produce. The laborer therefore is as employer in promoting by every the efficiency of the industry Such efficiencydepends not only on himself but upon the intelligenceof the employer and upon the capital resources The employer must which he can study the command. if the wealth or be fund high. tively. Each factor is indispensable and helpful. should the fruits of the joint enterprise be distributed? Justice requires that each factor should be paid in proportion to its contribution to the result. much markets and ascertain what the community needs. collecstock is great. in the light of these considerations. be paid during the material and the wages which must making and distribution. out however they must may of which they be paid is small. The distribution of goods is roughly accomplished under the free and spontaneous plan which is now established. they will have more must depend upon the stock should be distributed is a question by itself. how much the goods cost and what he can sellthem for. The the raw capitalist provides the tools and machinery. Without a man can make so much. they will have little. make five times as much. influentialthan either of the others.

and these the community be bought for less. labor union fixes them. prosperity of the community. seem to be prosperous the the workman. control.profit and interest depend then primarily upon the abundant production of the right articles.and they offer their services in competition with each fit. earns. has observed that one depressed at the same therefore earned and profits and interest are paid by the industry. Assuming cannot that all are earned. nor work employer If he tries to high wages pay service. a Neither controls the other. he compensating without some must will charge high prices. They must live. To produce little to produce the wrong or articlesis to impair at once Wages. The case ignorant is peculiar. However benevolent the employer may be. and trade time: the is brisk when wages and profits are high. and except they be so earned they be paid. Each year many the port of New York who know nothing of of the foreigners land our "sweater" at language work in order to and industrial conditions. Every the men and factories are busy when trade is brisk. each is subjectto the same more than he make compelling influence. employer and the capitalist. Neither can less. and where profit at the wages demanded cannot raise wages above those earned. such as other to the special trades for which they are free They are in fact never sewing and garment making. Where a man not The can truth is that neither can get five dollars a day he will an make he will stop his enterprise. less than they to accept for he cannot compel free men he cannot for three. 19 . Wages. what controls Laborers think the emthe relative part of each? ployer pays and the employer thinks the and fixes wages. not tolerate where the goods may Neither can the employer pay less than the general rate. are worth and can get elsewhere.

namely. that His subsequent success due however not to his benevolence was significant experiment which the character of the special workmen whom he enlisted in his service. and comsurrounded by skillful eager workmen mands best machinery known to the the craft. that he is emancipated from all injurious restraints. cheapness? conducted. or force them to equal efficiency? Will not such competition tend to the welfare of the whole community. of incompetent factory by stimulating the zeal of selected mechanics and by means of their co-operation realized a greater output before in a like industry. that he is what we so but to earned their wages. Those craftswhich require the highest skillare best paid. A few years ago an automobile manufacturer tried a seemed to show that the he desired. that he knows trade and his business. His men at less cost than ever rarely observe: that an employer is excellently wise. that his credit is good because deserved. He anas employer might pay such wages nounced he would pay not less than fivedollarsa day. and ultimately realize for everybody engaged in industry a corresponding advantage in the abundance 20 . success as we conditions of Will not such an enterprise. Let me assume to assist. What be the consequences? must Will not the goods produced by such zealous and intelligent co-operation fulfill all the have outlined them: quantity. The wages high so offered were free to choose the best. and he rigorously that he was exacted of them one condition. so the right sort. He could not have so increased the wages earn He increased the efficiencyof his men. that each must his wages. drive to the wall all competitors who lack similar advantages.and afford not a refutation of the law under consideration but an example of the pathetic condition of the incompetent.

pay wages and interest whether they are earned In time of prosperity he must accumulate enough depends upon equal. If you wish to find a prosperous country where high wages machines and employs paid. thrive by mutual service.and cheapness of all goods? And will not the laborer get his share in the ease satisfy his wants? with which he may fail Goods are made for his consumption. If his income seems times great. and so men Why one man than another is of easy day is paid less solution. and he cannot By conto tributin and cheapness. 21 . the highest intelligence. for adversity. The sum more difficult and more needed or more depend of these considerations is this: wages the upon the product of labor. he promotes much own. The employer business. profit by their abundance his to the welfare of others. seek that which uses most today. The hatter who makes one hat a less than he who makes two: the man who rakes the fires. his at depend His fortune will ever losses are sometimes great. wealth per capita than to any nation in the world and therefore have more distribute. than he who controls the engine. comfort and by superior I mean gets more pay but productive. he must or not. In order that be earned the factory must produce goods at a which is less than the market price. Profits depend they may cost must success upon like considerations. but not are We produce more in spite of them. and that product upon efficiency of labor and the intelligence of the manager. and his compete with all others in the same his ability. The superior work gets less unnot the better wages. all other things being The risks involved in the enterprise rest on him. America is that country because we have protective laws and labor unions.

Interest the money market. little. when business is are as still perilous and unusual risks are to be confronted. Interest is governed wages by the influences which control embarked an and profit. pay compete with another. profitand interest cannot be arbitrarily fixed by anybody. controlled by a committee been able to long survive. The credit of all another. others have be proportionate be overpaid nor underpaid. If he is unfit for his job. men or on what is called the supply. therefore low business is dull and high when it is active. All are controlled by 22 It seems . An active trade requires more capital than a dull trade. and the results of this competition are felt in the No one can money markets. Interest is that part of the output of is paid for the use of the capital employed. That on the whole he earns what he nothing can save inducement to compete gets is evident to everyone experiments which are who considers the co-operative dustry from time to time tried.upon to his intelligenceand his service. One deserves more borrower is dependent in some not than degree lender. He cannot If in an a the long run. special industry he earns resources and If he with him. therefore that wages. will receive little. arbitrarilyfix interest rates. and earns Rates are more. and so is every fluctuate from time to time in response ating to a flucturates demand. In order to pay interest. sort. It cannot has ever lacking the factory which The lender as requisite guidance. he earns him. but on is every equal. and rule exacts security of some his reward depends upon the average a as a his risk is small cost of capital in the money market. They when higher in time of trial. in too much. No inof workmen compete. Capital earn unuseful enterprise cannot and One capitalist must a cannot return. the industry in must earn it.

Interest rewards of all industry are abundant and cheap. The enjoy large deny. and the right goods are produced abundantly at little the community thrives and everybody in it thrives who Wages and profit will be high because the will do his part. the beginning it has been . cost. If on the other hand few goods are produced at great cost in human effort. and wages poverty.economic influences which none can disregard. Do one can without doing any labor. yet that its distribution is There is a widespread notion that such distributi unequal. these facts justify the dissatisfaction incomes as which is so frequently expressed? The question involves moral as well siderati practical con- If what cannot rests seems be justified on upon moral tradition. that some no men is unjust because it is unequal. it will languish in the community and all comprising There will be few goods. which has been set out face with that private from consider. Primarily depends upon the abundance the welfare of the community If everybody is intelligentlyemployed of goods needed. Private property grounds. From 23 it right results in wrong. That there are rich men and poor men. It appears to social unrest which afflictsus results from the conviction that has received more one man somehow and another less than is due to him. and profits will tend to a minimum while interest will tend to rise. will be low because capital will be cheap. that the workman receives less than the employer. with We property are now brought we face to what said that wealth is now produced by a divided but co-operative labor. The fruits of a co-operative labor are distributed not but in accordance with a just arbitrarily and useful economic law which secures to each worker a reward which corresponds his service.

we may question his right to more. ownership can result that men a have Is this the case now which confronts us? Are men ing claimbelongs to them by natural right. to goods produced by their own efforts. these are " to be answered.an obvious and just claim. ir inequality just in the more to does not poor because the production of sense that my having result in another's having less. mankind. is their partiwhat cipation in the fruits of a co-operative labor proportionate the actual contribution of each such goods. 1 have altogether failed in this essay if it is not obvious that workers thrive in proportion to their service. profitableto do so than to work for themBy dividing labor they make more goods. Reason of property. still The excuse notions ability. it is our dissatisfied part in an of the community In the present accusation. ifwe have less than another by deserving less. then the wealth which a man is his own by the must common opinion upon which every sort of property do what he ultimately rest. and the increment in the output is shared by means of trade. 24 will ever find an instance however . If this be derives from his work. and he can in the wishes with it: for we cannot allow him a property in those which goods he creates and deny him a property another creates and gives him in exchange for his own. however If we has very envy a littleto do with man of greater natural to deny his superiority. it is mine by the common opinion of My in injury to none. that is. true. work because it is more selves. which must I have endeavored to fully explain the advantages of co-operation and to trace these advantages to the increased efficiency of the specialized or divided labor which now Men for each other characterizes all industry.or are some the questions others are rich.assumed natural right. If I make a hoe.

not because it can in excess of an outgo. I am a trading.by the accusation is fortified plausibleconsiderations which findsit hard to be rid of. of a medium That the trade. yet while men admit the mutual profit of barter. each is better oflFto the extent of that worth as the result of be specializationand trade. have two hats and one pair of shoes and B two pairs of articles are produced than where both Where. is so remarkable that persistence of this error it is necessary to understand its origin in order to refute it. The two transactions are identical:in the former I barter one of exchange called money. made by one made assumed. as in the case shoes and If we assume hat by trading a hat for a pair of shoes. but because they wish a profitwhich is to be derived from sellingmore than they they assume the buyer. buy. what does it The result in? If I exchange a pair of shoes for a hat. however conducted. To such a trade neither can one 25 . they deny that such profit is mutual where goods are bought and sold. No one greets the sellerwith the cordialitywhich he shows to Nations fear what is called an adverse balance be an evil to have an income of trade. three hats and three pairs of shoes are by A and B respectively as against a hat and a pair of A may shoes which each might have made independently. what does it involve. Men because they believe it involves a loss to themselves. if I sell pair of shoes and buy a hat. I am trading. Let more us commodity thing by means for another and in the latter I do the same consider the more two are cases. ought to be evident. involves a profit or advantage to both parties. By a divided labor hats and shoes man. that a hat is worth a pair of shoes. We have recently man even a just "profiteer" which contains such invented an ugly word " " hate another's profit instinctively considerations. What then is trade.

or to express the account " Hatter's Account. profit. and both regarded as buyer or seller. After such a trade has been effected.00. 26 . realize the same Now let us assume that the hatter and shoemaker use bartering their goods.00 and the goods produced by In the case himself.00. in other words. the problem is a little confused.each will have $5. If each starts with $5.00. pairs of shoes.00 and a pair of shoes $4. but the result is the same. and each buys from the other a hat or a pair of shoes for $5.00 and three articles. hats and shoes are reckoned at equal value. the profitrealized by buying and selling is precisely the profit realized from barter. If a hat cost $3. $14. a hat and the shoemaker will have two in dollars only: and $6. money and selland buy instead of Each starts with say $5.for each is both.00 and precisely what he would have had if the shoes had been bartered for the hat.00. $14. after selling and buying a hat or a pair of shoes the hatter will have two hats. a pair of shoes and $4. assumed.

$5. 2 pairs of shoes at $4. Shoemaker's Account. 3 prs. Account. 5. 2 hats at $4. 5. Cr. Cr.00 more that each values his commodity than it cost. and sells at that profit. costing $3. These examples show that barter itself does not increase diminish the wealth of either party in any real sense. 1 hat costing $4. 1 pr. 4. $17. 3 pairs of shoes Cash on hand $4. Cr. 4. at now $1. $20. Let us $17. 3. 2. 1 hat. After trading. 5. at Before trading. 4. Balance of cash Price of shoes $8. Cash on hand = $12. Zr. the shoemaker created a greater 27 . = $15 5 of shoes at = $5. Price received for hat $17. = $10. at ^r. 1. After trading. assume Hatter's Account. 2 prs. 3 hats at $4. Before trading.Shoemaker's Before trading. = $8. Cr. $17. of shoes Cash on hand After trading. $12. Balance of cash Price received for shoes $20. nor In the case last assumed. of shoes costing $5.

which seems In order that tnis fact may be distinctlyunderstood. Cr. valued 12. advantage. distinguished from such an The profit as nominal to result from trade. $12. Before trading. 15. shoes 3 hats valued at $4. and this is the whole advantage involved in the trade. measured in money. shoes at $15. Each got what he needed in exchange for what he made. shoes costing $5. Before trading. let us assume that each of the traders sellsthe whole of his goods to the other at a profit: Hatter's Account. Each sells the open in market and buys in the open market. Cash 3 pr. The business of the merchant is to assemble goods in order 28 . 3. Cash 3 hats at $15. We are $30. Cr. he started with. Cr. cost $4. cost $3. Cash from 3 pr.than the hatter. but after value. but the were values exchanged equivalent. Cash balance $15. 12. Cash from 3 hats 3 pr. $4= = After trading. is deceptive. $5. Cr. valued 15. "$27^$27" Shoemaker's Account.= == After trading. $30. deceived by what seems a profit because the shoemaker and the hatter rarely do business together. as trading each had precisely as much They exchanged one sort of goods for another.

00. . Before buying. is incomplete. $15. $4. at Proceeds of 3 hats sold After buying. 29 $27. 3 pr. and if we assume that the merchant makes nothing out of his service the results of a trade to be as follows: made through him seem that they may Each The therefore seems transaction however to made a profit of $3. 12. shoes bought Balance of cash $5. Hatter's Account. at 12. Cr.be exchanged. Cash $15. for in the case have assumed each buys the other's goods. Cr. $27.

or $27. pr.00 of cash and 3 hats worth $4 each. but the hatter lost nothing by such exchange.00. I mean no more than that trade can result in nothing but the for another one substitution of value equal value. except of he wanted by sort of wealth getting what exchanging one for another. which equal $27. he ended with $12 of cash and 3 pairs of shoes worth $15. Cr. the shoemaker started than the with more hatter. yet it is quite evident that better off than at the start. 3 hats bought $4.00 to his. $30. $12. The shoemaker started with $15 of cash and 3 pairs of shoes worth $15. Balance of cash $30. It will be observed that as a result of the completed transaction ths hatter has lost $3. which make $30. but something hatters.00 to settlethe difference.Shoemaker's Before buying.00 of his cash and the shoemaker has added $3.00. Cr. The transaction seems therefore to have to unprofitable neither is worse been profitable to the shoemaker and the hatter. he who upon produced by himself. he ended with $18 of cash and 3 hats worth $12. will have twice as many 30 hats in to given exchange for . As between a two time as produces twice as many the other. Cash Account.00. 15. 18. shoes at at $15. and ended with more. and as the hats and the shoes were exchanged. In other words. neither did assumed the shoemaker the advantage gain anything. $5. The differencebetween the value of three pairs of shoes and three hats was $3. The prosperity of every producer of goods depends not upon something derived from another. The hatter or started with $15.00. Proceeds 3 After buying. the hatter paid to the shoemaker $3.

I have been discussing barter only. or he may to less supply. and gives what he gets. the shoemaker may work produce an article for which there is a In the latter event his greater prosperity causes: two not to his be own industry. but to another's unfair. in order to show what it involves and what good results from it. If 1 create a the demand article depends upon value for which there is a great demand. enrich a producer of industry and zeal and goods: he is enriched by his own in proportion as intelligence and these faculties are em- ployed in production. Each gets what he gives. I create a greater value than he who produces that which is less needed. as that sort of selling and buying which results in immediate exchange. to this an to true. His income cannot less. now reach a new perplexity which must In the case put the shoemaker of what produced $3.what be greater than his he needs. more be hatter. has been simple. and the a general word "profiteer" contains in a general sense delusion. Assuming does it involve not. It is never I am stillpaid . The value of every is to for it. is his prosperity injury to the no man To to an make what consumer? needs is to serve Obviously add sort abundant supply nobody: other articles of the same render an unneeded service: to supply what is necessary and lacking is to render the best sort of service and to deserve a corresponding reward. We be disposed of. I do more not good than he. 31 the good I do him. This excess we call value than the value may Up to this point the problem due either of harder. Trade does not nor outgo. and my prosperity represents another's loss but that profits are according to my derived from trade by one man at the expense of another. to be due seems need. true service.

every firstbarter what for what barter the money such mediate barter. The of find some one must producer of goods still who needs them. Money is a in is a commodity that wheat preciselyin the sense but it differsfrom every other commodity commodity. and is entrusted to one business of a this task who makes trade. another . Let unknown a me assume to merchant. I shall attempt to ignore it wherever possible. As a rule he is too busy to search out the consumer. we diminish the value of what we neither add to nor give We exchange one value called goods for another and get. namely: money the owner can ex- change other this commodity reason we commodity is exchangeable for we we we for any whatever. important money one particular. equal value called money. which serve but to enable them to exchange goods without such contact.Trade Where however labor or is never so simple as in the cases assumed. the consumer. The most important of these instrumentalities is money. only. are that the hatter and the shoemaker each other and conduct their trading through The hatter sells his hats to the merchant. and the merchant sellsone hat 32 to the shoemaker. for money and then It is obvious that by For call sellingand buying. industry is minutely divided as at present. All goods are marketed by intervening instrumentalities to bring producer and consumer not together. one producer of goods rarely deals directly with another. The merchant buys from the producer and sellsto As his service is a necessary he makes one. Money does not avoid all the difficulties trade. however money is apt to confuse commercial transactions. what is called a profit by performing it. and then exchange the money for another equal value in goods of As another sort. which make need.

who to him. To transfer goods from a market where they littleneeded to one are where they are greatly needed is corresponding reward. at a profit. but they represent and not an injury. The merchant who sells in a in cheap market. The explanation is identical are with that already offered. At this point we are again confronted with a fact to a which I have already referred: one merchant makes greater profit than another. Such is the service rendered by the merchant. for it deposit cannot use it. he lends does What service does the banker perform? not belong money People who have no use in the bank.the blacksmith. Both a service to each better and not worse off as the result of his service. and this part is called usury or use money. What to a deserve of the banker? Trade cannot be hard conducted to money. money. who pays them? rich His profits are by the at the expense of others? paid hatter and the shoemaker in one sense. What the imagination nothing is more odious than usury. and money is sometimes get. at a profit. The merchant is helpful to both and is paid by each because he helps each. rarely has enough of his He must therefore borrow The banker is the lender. The need of the hat and the need of the hatter a pair was a shoemaker able to get what he wanted without of shoes. own conduct one from To who has induce him to lend. Whence to Does the merchant get these profits. etc. etc.. At the same time the shoemaker sellshis shoes to the merchant and the merchant come sellsa pair to the hatter. to without The great his merchant business. and the banker.. performs a lessservice than he who sells a dear market. the merchant must part pay of his profit to the To banker. and this reward is proportionate not to the harm but to the good done. Neither was the intervention of another. 33 .

The service rendered by the banker is very great.does he not does he contribute anything to get rich without service. The banker by becoming If I. much. Men were usury so was spent it and however usury then a is quite required to pay different thing. move them to a good market and sell money. being a merchant a partner in my service. the merchant who markets them and the banker who helps the merchant. lends at his own borrow the and lacking money. part of for by enabling them to exchange goods what they need. he will lose his advance.lends his charge unjust. fruits of that service. opinion of the Church "The usurer it has been deemed hateful and hurtful. man is the great Sabbath breaker. The maker of goods." The an Church was unmixed centuries right. Is not By the common forbade usury. the goods of the world. debt and interest and my pay at a profit. earns and not deserves hurt me. does he distribute them? These questions also should be answered so clearly as doubt. business he is engaged in. more. 34 the producer and consumer what they make . During many in distress borrowed evil. Usury has always been hateful. I can them have something left for myself. Christ to leave no drove the bankers from the temple. his plow goeth on Sunday. If he lends for an unprofitable He enables the enterprise. For many centuries to another. borrower to do what he would otherwise be unable to do. honor all He must safeguard the funds If he lends trust funds. He help both and I in turn does of the he helps me. He must but understand the of the borrower and his resources. he checks and keep accounts. share alike in the fruits of a divided industry. Today The borrower the use of money and shares his gain with the lender. left with him. buy goods. gains by know not only the character risk.

for sale in Kansas will not get so rich as he lends money in Kansas for sale in New to buy corn England thrive who does an unuseful If he does or helps to do a useful thing. he earns thing. and his profit is derived not from hurting but from helping another. It is necessary that men should have an inducement to do good and not to do evil: to do that which helps along rather than that The uneven the welfare depends upon plentifulproduction of the right articlesat least cost. charging for its use. prosperity of one cannot The accumulation pensable of wealth by individuals is indisto the community. the machinery. and as one man than another. but if he does. cannot We get rich at the same time. it is because he renders a better or more needed He who lends a merchant money to buy corn in service. the raw It does wages pending the completion and sale of goods. the fruits of his service. What one can produces. as I have already explained. There is no limit to the amount of wealth that The be produced. 35 I save . Accumulated or unconsumed wealth is capital. can No banker distribution of wealth is due to salutary for the welfare of society and useful laws. deprive another of the fruits of his own industry. Society helps itselfby rewarding which retards progress. he gets. and capital. good than it earns vastly more If I lend a reaper to a farmer. It affords the tools to work is most to industry. necessary material and with. men That the good they do. in the way of interest. and their just distribution. Every man's zeal helps all proportionately does more good to the others. it lets him become The increase in one man's riches richer than another. diminish the goods of another. the factory. New In who England.this instance also there is a difference between banker makes more individuals: one than another.

It is a maxim of but three generations between experience that there are money hoards shirt-sleevesand shirt-sleeves. It enables the possessor to live in comfort and confidence no man man and injures unless its possession gives one " an unfair advantage competition which labor lacks two-thirds of its capacity.and capital is abundant. To put capital always goes to him who foolish enterprise is to hurt at once the capitalist It cannot be accumulated without and the community. there are many capitalists. service nor preserved without service. his fellows in that relentless I have described. The man who into a is called a miser. for it is worth nothing to the If capitalist unless he employs it for the general good. one must compete with another in his charges. A Have machine can outstrip it in the race. If I lend increase his profit I increase workman. The right use high intelligence: that sort of of capital requires very intelligencewhich is requisite for a banker. all its fruits? How for him? A ready answer the earth and appropriate live: what is left the newcomer be found in what is continually with property to this question may man everybody observes: the 36 . He is miserable because he serves neither himself nor others. of such increase for my his crop. a small part of capital by individuals cannot tend to cripple industry. An incompetent man who employs it cannot retain it.him on an immense amount a of labor and machine to a his output five or tenfold and receive but help. Private property cannot therefore of itselfbe an evil. and business The appropriation will lend for least. Without capital over man we with a destroyed the equal opportunity by permitting one man to to can which own we should at least aspire.

boy who abandons The country to the farm and comes the city thrives because he finds there better opportunities. distributed. what another may entered upon all of these considerations to organization of industry show that the free and spontaneous have arrived after centuries of experiment is at which we as just the whole an excellent and beneficialsystem. The owner who seeks his own tion of socialism liesin the assumpperienc Exreap. upon the advantage what manner tried also to of the laborer and the community. property for labor than labor is for property.what its increased efficiency enured to results followed. to those engaged in it as to those who depend upon I have tried to explain why labor became specialized.losing it and the man who lacks it is ever acquiring it. which is not necessary need for the good of others. how accomplish I have welfare his must do good to others in order to object. it. those advantages were prove and in 1 have of every class engaged either in the production or distribution of wealth be the direct and necessary must result of the service it prosperity 37 that the . it is the servant who owns it. The man and not the master be profitable to the community. The fundamental that one man error will sow is wiser. the community. Morever. The economic answer rests upon the principle that can neither personal nor real property the owner unless it be made of service to We to sow crops sell and thereby feed Property is like labor in the respect that of society. necessary must use all that part Each is dependent upon the other and the mastery is with neither. willing or for his own is not more not. We allow private property in land and goods because we know that only in such fashion can they be made available for the general good.

of trade. by Our industrial freedom is justified its utility. We free. a convenient It contains a instrument an measure. idle. but it is wealth in the same of its wealth. tell. but wheat and iron we measure other values. It is a tool of exchange. Money sense that a hoe is wealth. gold of the United States constitutes perhaps one-fiftieth is wealth. with which also contain value.that wealth consists of why I cannot Nothing could be farther from the truth. and up money. If we failto serve we are not serve. But it is not man's inishes general wealth dimEvery one is free to prothe wealth of another. he will diminish cannot true be produced as wheat that an increase in one as the general stock.has performed: too more to justify fulness private enrichment by the usecan of capital: and to show that there man little wealth to go round because one than he needs. duce much as he can. and they and every other commodity amount other commodities constitute ninety-eight per cent as per against the two of the wealth of the community It is true that if one locks man cent contained by money. I cannot never be accumulates the causes of conclude without mentioning to overlook. definite and unfluctuating of what we call value. Some Others are ignorant or incompetent or willing to work. A slavish system would be altogether less profitableto 38 . and what he produces for himself does are affect what another produces for himself. as gold is produced.and each reaps what he sows. we are if punished relentlessly. are apt the prevailing discontent which we Men assume. The money. we we save ourselves and to are unequally divided because all men know what to do and how to do it and is useful to rewarded. Wealth is not are alike.but free only to serve. What others.

while it has grievous blunder when many pairs: to than three is to compel a man make no more depend upon reduce his wages. men are laborer is deceived by the He observes that output. This delusion is as old ignorance. make diminish the product of industry and impair the prosperity I will not do freely for be of all. labor in order that it may produce more. the advantages of specialization will be impaired or lost. we shall observe that most but to not of them are only hurtful to the promoters use If we worthy objects." the bad to be tyrant the good. apparent more men stricti results of reare Wages seem satisfied. for wages. they seem high and be low. compelled to do efficiently these general considerations to test the utility of the various expedients which are from time to time tried for the redress of grievances. What myself I cannot for a master. it we We now divide If after dividing produce less. one according to his need and from each according to his we over power. Yet they may are earned by labor and paid in 39 . involves the the value of such product. production us assume that a proper output of shoes per day is five a everybody else. Wages If a are cents about seven paid in money. The Chinese still cherish it and earn as day. A restricted production cannot be good for the community unless to lack what we need be a blessing. Trade adds nothing to the amount of wealth produced.If we say "to each the individual and to the community. high. as we have seen. The labor union. The required do the same to amount of work and thinks that therefore the laboring class is better off. it attempts to commits curtail in order to provide places for more Let men. Restricted output to inversion of the present industrialsystem.

the fruitsof labor. is not to prosper. The will most not work and the capitalist will stop effective check upon abnormal wages is that which results from the injury they attempt to Earned wages inflictupon a the community. wages will be high.even through the intervention of money. If all labor shall zealously as possible at least cost. normal to high prices. the exchange produce as much in goods will be high. dear goods low wages. and abanother $10. No afford. represent service man can rendered. can get little.00 a day. If we produce little. so the whole. If all value of labor measured wages. scamp as their jobsand make as little possible. law. unearned compel If I get wages. to the economic must and wages ultimately conform The The are Union seems unable to dependence man of all classes engaged the mutual in co-operative industry.00 a day. in disregard of economic law All efforts to raise wages so must pay result in failure. To and be able to buy for it but receive $10 a day in money Cheap goods mean high $2 in value. another to pay what that other cannot for my labor $5. An industry can much and If it earns demand no more. may wages the money stock of goods or we being large or small as we littleas more nothing. A boom wages tend always collapses. however high The common seem. and that neither can without hurting him 40 on unfair advantage whom his own . choose. understand that others who makes shoes will not remember gain an engaged in making hats. much and wages the employer lending. 1 cannot pay Rising prices kill trade.the exchange value of labor measured in goods will be low. so shall we Something can never out have much be got for of less. If labor be efficient and there is much we to go round. be got cannot make it. a wrong done. Money wages are always deceptive.

but he cannot many make too many and for the men need them and will pay $2 for them. when more goods are sent out than are What nonsense! What is trade? Is it not the exchange of Perhaps goods for goods? Is the balance "favorable" when 41 more is . Economic not which seeks the rewards selfishness of service is quite a different thing from that disorderly spoliation. and both are satisfied. Laws are stillin force which pretend to satisfy this universal craving. the shoeprosperity depends. as employer is sometimes He too tries by restricting output to control prices. The Union selfishnesswhich attempts immediate advantage. The general propensity of every industry and in it to of all regard its welfare as something special and apart from that of others has defeated and perhaps economy always will defeat the plainestdoctrine of political engaged lesson of experience. maker hats. but it is as impossible for him same reason. The may will foolish as the laborer.The hatter needs shoes. but such advantage secure an be temporary. or to m artificiallyaintain them by pools and conspiracies. that too many pay goods have been produced but that the public cannot A manufacturer too may the price demanded. and interesting manifestation of this the most delusion is to be found in the opinion of the business world with respect to foreigners and to what is called the balance able" of international trade. They protect A against B and B against A. The community so which earns What is called overproductio much can pay so much and no more. They are called ingeniously "protective" laws. make hats while $5 hats. or at all. People say the balance is "favorbrought in. It does not mean deceives us. and each must deal fairly with the other. to succeed as for the laborer.

We therefore ship her goods for goods and also goods for the use of her capital. it is because we fore wish something we purchase with it.be even: it given for less? The truth is. have exceeded to England that our exports imports from England by a great sum during a whole our century. but what is money for? If we send it out. because as soon as threaten us? the export of to deprive a country a necessary specie tends of medium of for domestic exchange must exchange. 1 do not deny cannot the United States has sent more goods it has received from England. The vague notion back of the words "favorable "unfavorable" is an inherited from apprehension ancestors " and our that if we buy more than we sell we shall lose One simple fact should expel this delusion. an that under certain circumstances adverse balance of trade must be corrected by the export of money. on the contrary. The balance has always been even. that time been the money market of the world. England has lost no money by this "adverse" during the whole of balance: she has. How can land this fact be reconciled with the prevailing delusion? Engand remained rich because her income has been greater than her outgo because it has been not less. but " has become because the capital borrowed has been employed in industry and we have not only paid for its use but profited by its use. but is the than Certainly not. We have been balance therefore uneven? that for a to England century for a century a debtor nation: we have borrowed England's capital to help our industries. Does disaster thereNo. Notwithstan money. The United States has also been prosperous not because her outgo has been greater than her income. the value of money It is true 42 . the balance must be either favorable or unfavorable.

for goods and the goods so bought are withdrawn from the It cannot general stock and consumed by the tax-gatherer. be a blessing to the worker bee to drones. and it is paid by labor. but it cannot half of all If we assume that one endure such a burden. we tax. is everybody or anybody better or worse the resultof such spoliation? When be produced goods. and the direct and necessary must result of such from abroad. be advantageous for the poorer members munity of the comby those that many goods should be consumed so The hive may many support who produce nothing. From a false certainly the root of much delusions: function flow many notion of its character and as favorab that "protection" protects. or that one man's riches 43 cause another man's . who pays it? It is a tolllevied upon industry.but it is bad thinking. Money goes advance will be to draw money instinctively as wheat or any other to its best market as it is incredible that it shall long be lacking commodity. One other obsession which works great mischief in the is pleased world deserves consideration. Money be the root of allevil.in the exporting country rise. Although collected in is immediately spent yet the money what is called money. The poor man the rich.that is.its purchasing power increase. that trade can have an unbalance. and in a commercial country where it will buy most. that the sellermakes something out of may not the buyer. and the when heavy taxes are imposed upon now tion. consists in predatory taxawhole art of government What is a tax. Goods must the tax ultimately? It may pays account. Who then a we fall firstupon bank of but in the end may or it falls upon the producers wealth. by appropriate labor. is appropriated by the wealth produced by everybody off as the State.

because the latter is too fugitive and degrees various for discussion. but of one: service and self-denial. undeserved. and these I have discussed. be reduced to capital without which industry would The hate which it inspires is penury. is not Private property It provides also the should wish to have. that what interfereswith trade impairs prosperity. that the benefits " and it is hard to be realized save by trade. get out of trade. be rid of these obsessions. 44 . captains whom not justly call buccaneers. There are That to sort men. and luxuries.that it involves the exchange of goods for goods.poverty. or services for services. We must rennember constantly that industry is divided because a specialized labor is most productive. I have confined myself to the normal sort of industry and to not thieving. and that the prosperity of all classes depends upon be the industry of all classes and cannot otherwise realized. which all men I fully realize that this brief discussion of a great but it cannot convince the unthoughtful man. we There may are bad men in industry. Its accumulation hurts no it helps every It provides comforts one. that of specialization cannot trade is good for the buyer as well as the seller. the fruit of wrongdoing. all which 1 have treated is the and I have tried to it does and sort of selfishness. for the exchange of is a convenient medium that money that what we carry into trade we goods and nothing more. be useful to those who seek to understand what is subject may con- fused. which is common showing may the good make it respectable by do in order that it must prosper. In conclusion I venture to reiterate the propositions which I have endeavored to establish.

that is upon the be paid for them. price which must Trade. Under it. and private intelligenceis than official supervision. which is indispensable to a divided industry. although each gets from he carries into it and no more.s corrects and restrains the selfishness each. or each individual may what he likes and trade where he likes. it is advantageous to all individuals that all goods should be abundant and not for the purchasing power scarce. of industry is divided. Of these TTie object of industry is to particular goods two to be exchanged for what methods conduces to skill and specializationis better because it efficiencyand therefore to greater production. freedom is better The than slavery. of special goods depends the abundance of all other goods. because it is controlled by economic laws which none may disregard. selfishnesscan thrive only by doing who makes in order to sell must good. The selfishnessof all guide. The more trustworthy free system cannot result in injury to anybody. or specialize his labor and produce he needs. In the accomplishment of this object each individual may produce all of his own goods.produce abundantly and cheaply the goods of which society has need. The man make what someone else needs and offer it on satisfactory terms for what he himself needs. free system is preferable because selfishnessis a better spur to industry than altruism. The organization of industry may be either arbitrary free. is upon Where beneficial to trade what all engaged in it. the State may direct labor and distribute goods or be permitted to do arbitrarily. All share in 45 .

or tools. to capital. and his enrichment diminish their riches. at the cost of the other.. but none advantage Trade should therefore be free.gets any the fruitsof a divided labor. The worst enemy of society is he who strives to make and high or to curtail the markets for them. Tlie prosperity of one individual impair 46 . to fair trade. cannot The free industrial system under which we live is excellen because it tends to the production of much wealth. to the distribution of such wealth to each according to his contribution. It is useful to the owner employed in aid of industry. be made productive. Land is given to industry. goods scarce is property Private property produced by work and accumulated when by self-denial. and to mutual service. may which are individuals in order that it cannot only of the indispensable the become rich only by can prosperity of another. Political economy is in reality the science of service. It is the source etc. to zealous industry. machinery. for a man helping and not by hurting others.

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