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before the coming of the machine industry and the material
sciences。
Since the underlying principles of the established order are
of this make…believe character； that is to say； since they are
built up out of the range of conceptions that have habitually
been doing duty as the substance of knowledge and belief in the
past； it follows in the nature of the case that any
reconstruction of institutions will be made only tardily；
reluctantly； and sparingly； inasmuch as settled habits of thought
are given up tardily； reluctantly and sparingly。 And this will
particularly be true when the reconstruction of unseasonable
institutions runs counter to a settled and honorable code of
ancient principles and a stubborn array of vested interests； as
in this instance。 Such is the promise of the present situation；
and such is also the record of the shift that was once before
made from medieval to modern times。 It should be a case of break
or bend。
Chapter 3
The State of the Industrial Arts
The modern point of view； with its constituent principles of
equal opportunity； self…help； and free bargaining； was given its
definitive formulation in the eighteenth century； as a balanced
system of Natural Rights； and it has stood over intact since that
time； and has served as the unquestioned and immutable ground of
public morals and expediency； on which the advocates of
enlightened and liberal policies have always been content to rest
in their case。 The truths which it holds to be self…evident and
indefeasible are conceived to be intrinsically bound up in an
over…ruling Order of Nature； in which thoughtful men habitually
believed at that time and in which less thoughtful men have
continued to believe since then。 This eighteenth…century order of
nature； in the magic name of which Adam Smith was in the habit of
speaking； was conceived on lines of personal initiative and
activity。 It is an order of things in which men were conceived to
be effectually equal in all those respects that are of any
decided consequence； in intelligence； working capacity；
initiative； opportunity； and personal worth； in which the
creative factor engaged in industry was the workman； with his
personal skill； dexterity and judgment； in which； it was
believed； the employer （〃master〃） served his own ends and sought
his own gain by consistently serving the needs of creative labor；
and thereby serving the common good； in which the traders
（〃middle…men〃） made an honest living by supplying goods to
consumers at a price determined by labor cost； and so serving the
common good。
This characterisation of the 〃obvious and simple system〃 that
lies at the root of the liberal ideals may seem too much of a
dream to any person who shuns 〃the scientific use of the
imagination〃； its imponderables may seem to lack that axiomatic
self…sufficiency which one would like to find in the spiritual
foundations of a working system of law and custom。 Indeed； the
best of its imponderables are in a fair way now to drop back into
the discard of uncertified make…believe。 But in point of
historical fact it appears to have stood the test of time and
use； so far as appears formally on the face of law and custom。
For a hundred years and more it has continued to stand as a
familiar article of faith and aspiration among the advocates of a
Liberal policy in civil and economic affairs； and Adam Smith's
followers the economists and publicists of the Liberal
movement have spoken for it as being the normal system of
economic life； the 〃natural state of man；〃 from which the course
of events has been conceived to depart only under pressure of
〃disturbing causes；〃 and to which the course of events must be
pruned back at all hazards in the event of any threatened advance
or departure beyond the 〃natural〃 bounds set by this working
ideal。
However； the subsequent course of events has shown no
indisposition to depart from this normal system of economic life；
this 〃natural state of man；〃 on the effectual reality of which
the modern point of view rests its inviolate principles of law
and morals and economic expediency。 A new order of things has
been taking effect in the state of the industrial arts and in the
material sciences that lie nearest to that tangible body of
experience out of which the state of the industrial arts is
framed。 And the new order of industrial ways and means has been
progressively going out of touch with the essential requirements
of this established scheme of individual self…help and personal
initiative； on the realisation and maintenance of which the best
endeavors of the Liberals have habitually been spent。
Under the new order the first requisite of ordinary
productive industry is no longer the workman and his manual
skill； but rather the mechanical equipment and the standardised
processes in which the mechanical equipment is engaged。 And this
latter…day industrial equipment and process embodies not the
manual skill； dexterity and judgment of an individual workman；
but rather the accumulated technological wisdom of the community。
Under the new order of things the mechanical equipment the
〃industrial plant〃 takes the initiative； sets the pace； and
turns the workman to account in the carrying…on of those
standardised processes of production that embody this mechanistic
state of the industrial arts； very much as the individual
craftsman in his time held the initiative in industry； set the
pace； and made use of his tools according to his own discretion
in the exercise of his personal skill； dexterity and judgment；
under that now obsolescent industrial order which underlies the
eighteenth…century modern point of view； and which still colors
the aspirations of Liberal statesmen and economists； as well as
the standard economic theories。
The workman and indeed it is still the skilled workman
is always indispensable to the due working of this mechanistic
industrial process； of course； very much as the craftsman's
tools； in his time； were indispensable to the work which he had
in hand。 But the unit of industrial organization and procedure；
what may be called the 〃going concern〃 in production； is now the
outfit of industrial equipment； a works； engaged in a given
standardised mechanical process designed to turn out a given
output of standardised product； it is the plant； or the shop。 And
under this new order of industrial methods and values it has
already come to be a commonplace of popular 〃knowledge and
belief〃 that the mechanical equipment is the creative factor in
industry； and the 〃production〃 of the output is credited to the
plant's working capacity and set down to its account as a going
concern； whereas the other factors engaged； as e。g。； workmen and
materials； are counted in as auxiliary factors which are
indispensable but subsidiary items of production…cost which
are incorporated in the running expenses of the plant and its
productive process。
Under the new order the going concern in production is the
plant or shop； the works； not the individual workman。 The plant
embodies a standardised industrial process。 The workman is made
use of according as the needs of the given mechanical process may
require。 The time； place； rate； and material conditions of the
work in hand are determined immediately by the mechanically
standardised process in which the given plant is engaged； and
beyond that all these matters are dependent on the exigencies and
manoeuvres of business； largely by way of moderating the rate of
production and keeping the output reasonably short of maximum
capacity。 The workman has become subsidiary to the mechanical
equipment； and productive industry has become subservient to
business； in all those countries which have come in for the
latter…day state of the industrial arts； and which so have fallen
under the domination of the price system。
Such is the state of things throughout in those greater
industries that are characteristic of the New Order； and these
greater industries now set the pace and make the standards of
management and valuation for the rest。 At the same time these
greater industries of the machine era extend their domination
beyond their own immediate work； and enforce a standardisation of
much the same mechanical character in the community at large； in
the ways and means of living as well as in the ways and means of
work。 The effects of their mechanically standardised production；
in the way of goods and services as well as in the similarly
standardised traffic through which these goods and services are
distributed to the consumers； reach out into the everyday life of
all classes； but most immediately and imperatively they reach the
working class of the industrial centers。 So they largely set the
pace for the ordinary occupations of the common man even apart
from any employment in the greater mechanical industries。 It is
especially the latter…day system of transport and communication
as it works out under the new order highly mechanical and
exactingly scheduled