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light the fact that the state of the industrial arts as it runs 
under the new order is highly productive; inordinately 
productive。 And; finally; there should be some gain of serenity 
in realising how singularly consistent has been the run of 
economic law through the ages; and recalling; once more the 
reflection which John Stuart Mill arrived at some half…a…century 
ago; that; 〃Hitherto it is questionable if all the mechanical 
inventions yet made have lightened the day's toil of any human 
being。〃 
 
Chapter 5 
 
The Vested Interests 
 
    There are certain saving clauses in common use among persons 
who speak for that well…known order of pecuniary rights and 
obligations which the modern point of view assumes as 〃the 
natural state of man。〃 Among them are these: 〃Given the state of 
the industrial arts〃; 〃Other things remaining the same〃; 〃In the 
long run〃; 〃In the absence of disturbing causes;〃 It has been the 
praiseworthy endeavor of the votaries of this established law and 
custom to hold fast the good old plan on a strategic line of 
interpretation resting on these provisos。 There have been 
painstaking elucidations of what is fundamental and intrinsic in 
the way of human institutions; of what essentially ought to be; 
and of what must eventually come to pass in the natural course of 
time and change as it is believed to run along under the guidance 
of those indefeasible principles that make up the modern point of 
view。 And the disquieting incursions of the New Order have been 
disallowed as not being of the essence of Nature's contract with 
mankind; within the constituent principles of the modern point of 
view stabilised in the eighteenth century。 
    Now; as has already been remarked in an earlier passage; the 
state of the industrial arts has at no time continued unchanged 
during the modern era; consequently other things have never 
remained the same; and in the long run the outcome has always 
been shaped by the disturbing causes。 All this reflects no 
discredit on the economists and publicists who so have sketched 
out the natural run of the present and future in the dry light of 
the eighteenth…century principles; since their reservations have 
not been observed。 The arguments have been as good as the 
premises on which they proceed; and the premises have once been 
good enough to command unquestioning assent; although that is now 
some time ago。 The fault appears to lie in the unexampled shifty 
behavior of the latter…day facts。 Yet however shifty; these 
facts; too; are as stubborn as others of their kind。 
 
    The system of free competition; self…help; equal opportunity 
and free bargaining which is contemplated by the modern point of 
view; assumes an industrial situation in which the work and 
trading of any given individual or group can go on freely by 
itself; without materially helping or hindering the equally 
untrammeled working of the rest。 It has; of course; always been 
recognised that the country's industry makes up something of a 
connected system; so that there would necessarily be some degree 
of mutual adjustment and accommodation among the many 
self…sufficient working units which together make up the 
industrial community; but these working units have been conceived 
to be so nearly independent of one another that the slight 
measure of running adjustment needed could be sufficiently taken 
care of by free competition in the market。 This assumption has; 
of course; never been altogether sound at any stage in the 
industrial advance; but it has at least been within speaking 
distance of facts so late as the eighteenth century。 It was a 
possible method of keeping the balance in the industrial system 
before the coming of the machine industry。 Quite evidently it 
commended itself to the enlightened common sense of that time as 
a sufficiently workable ideal。 So much so that it then appeared 
to be the most practical solution of the industrial and social 
difficulties which beset that generation。 It is fairly to be 
presumed that the plan would still be workable in some fashion 
today if the conditions which then prevailed had continued 
unchanged through the intervening one hundred and fifty years; if 
other things had remained the same。 All that was; in effect; 
before the coming of the machine technology and the later growth 
of population。 
    But as it runs today; according to the new industrial order 
set afoot by the machine technology; the carrying…on of the 
community's industry is not well taken care of by the loose 
corrective control which is exercised by a competitive market。 
That method is too slow; at the best; and too disjointed。 The 
industrial system is now a wide…reaching organisation of 
mechanical processes which work together on a comprehensive 
interlocking plan of give and take; in which no one section; 
group; or individual unit is free to work out its own industrial 
salvation except in active copartnership with the rest; and the 
whole of which runs on as a moving equilibrium of forces in 
action。 This system of interlocking processes and mutually 
dependent working units is a more or less delicately balanced 
affair。 Evidently the system has to be taken as a whole; and 
evidently it will work at its full productive capacity only on 
condition that the coordination of its interlocking processes be 
maintained at a faultless equilibrium; and only when its 
constituent working units are allowed to run full and smooth。 But 
a moderate derangement will not put it out of commission。 It will 
work at a lower efficiency; and continue running; in spite of a 
very considerable amount of dislocation; as is habitually the 
case today。 
    At the same time any reasonably good working efficiency of 
the industrial system is conditioned on a reasonably good 
coordination of these working forces; such as will allow each and 
several of the working units to carry on at the fullest working 
capacity that will comport with the unhampered working of the 
system as a balanced whole。 But evidently; too; any dislocation; 
derangement or retardation of the work at any critical point  
which comes near saying at any point  in this balanced system 
of work will cause a disproportionately large derangement of the 
whole。 The working units of the industrial system are no longer 
independent of one another under the new order。 
    It is; perhaps; necessary to add that the industrial system 
has not yet reached anything like the last degree of development 
along this line; it is at least not yet a perfected automatic 
mechanism。 But it should also be added that with each successive 
advance into the new order of industry created by the machine 
technology; and at a continually accelerated rate of advance; the 
processes of industry are being more thoroughly standardised; the 
working units of the system as a whole demand a more undeviating 
maintenance of its moving equilibrium; a more exacting mechanical 
correlation of industrial operations and equipment。 And it seems 
reasonable to expect that things are due to move forward along 
this line still farther in the calculable future; rather than the 
reverse。 
    This state of things would reasonably suggest that the 
control of the industrial system had best be entrusted to men 
skilled in these matters of technology。 The industrial system 
does its work in terms of mechanical efficiency; not in terms of 
price。 It should accordingly seem reasonable to expect that its 
control would be entrusted to men experienced in the ways and 
means of technology; men who are in the habit of thinking about 
these matters in such terms as are intelligible to the engineers。 
The material welfare of the community is bound up with the due 
working of this industrial system; which depends on the expert 
knowledge; insight; and disinterested judgment with which it is 
administered。 It should accordingly have seemed expedient to 
entrust its administration to the industrial engineers; rather 
than to the captains of finance。 The former have to do with 
productive efficiency; the latter with the higgling of the 
market。 
    However; by historical necessity the discretionary control in 
all that concerns this highly technological system of industry 
has come to vest in those persons who are highly skilled in the 
higgling of the market; the masters of financial intrigue。 And so 
great is the stability of that system of law and custom by grace 
of which these persons claim this power; that any disallowance of 
their plenary control over the material fortunes of the community 
is scarcely within reason。 All the while the progressive shifting 
of ground in the direction of a more thoroughly mechanistic 
organisation of industry goes on and works out into a more and 
more searching standardisation of works and methods and a more 
exacting correlation of industries; in an ever increasingly large 
and increasingly sensitive industrial system。 All the while the 
whole of it grows less and less manageable by business methods; 
and with every successive move the control exercised by the 
business men in charge grows wide

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