第2章

Nowanorganicinterpretationofindustrycannotacceptthismodeofconceivingtheproductiveandconsumptivefunctions。Considerationsoftheorganicoriginsofindustrylendnosupporttotheassumptionthatproductionisall\'cost\'andno\'utility，\'consumptionall\'utility\'andno\'cost\'。Onthecontrary，inourhumananalysisofeconomicprocessesweshallratherexpecttofindcostsandutilities，alikeintheirsenseofpainsandpleasuresandoforganiclossesandorganicgains，commingledinvariousdegreesinallproductiveandconsumptiveprocesses。 Ouraimwillbetosetout，aswellaswecan，reliablerulesforexaminingtheproductiveandconsumptivehistoryofthevarioussortsofconcretemarketablegoodssoastodiscoverthehumanelementsofcostandutilitycontainedineach，andbyacomputationofthesepositivesandnegativestoreachsomeestimateoftheaggregatehumanvaluecontainedintheseveralsortsofcommoditieswhichformtheconcreteincomeofthenationandinthisincomeasawhole。Onlybysomesuchprocessisitpossibletoreachaknowledgeoftherealwealthofnations。 Wemaystatetheproblemprovisionallyinthreequestions: 1。Whataretheconcretegoodsandserviceswhichconstitutetherealnationalincome？ 2。Howarethesegoodsproduced？ 3。Howaretheyconsumed？ Butintruththeconsiderationoftheso-called\'concrete\'natureofthesegoodsisasirrelevanttoouranalysisasthatofthemoneyticketplacedonthem。Forfromthestandpointofwelfarethesegoodsarenothingbuttheactivitiesofthosewhoproduceandconsumethem，or，ifitbepreferred，thehumanprocessesofproductionandconsumption。Thehumanmeaningofanygivenstockofwheatinournationalsupplywillconsistoftheeffortsofbodyandmind，thethoughtanddesireanddirectedskill，putintotheseveralprocessesofpreparingthesoil，sowing，tending，reapingandmarketingthewheat，undergonebythefarmerinManitobaorinNorfolk，themerchant，shipper，miller，bakerwhoconveyitfromthefarmandconvertitintobread，andfinallytheactivitiesofmastication，digestionandassimilationwiththeaccompanyingsatisfactionasitpassesintothephysicalsystemoftheconsumer。Andsowitheveryothersortofconcretemarketablegoodsorservices。Fromthestandpointofhumanvalue，theyarewhollyresolvableintothephysicalandmentalactivitiesandfeelingsofthehumanbeingswhoproduceandconsumethem。Itisthebalanceofthedesirableovertheundesirableintheseseveralactivitiesandfeelingsthatconstitutesthehumanvalueofanystockofmarketablegoods。Thestandardofdesirabilitywillbetheconceptionoftheorganicwellbeingofthesocietytowhichtheindividualswhoseactivitiesandfeelingsareconcernedbelong。 Ortheseveralstagesofinterpretationmaybeexpressedasfollows。 Agivenmoneyincomemustfirstberesolvedintotheconcretegoodswhichitexpresses:thosegoodsmustthenberesolvedintothevariouseffortsofproductionandsatisfactionsofconsumption，estimatedaccordingtothecurrentideasanddesiresoftheindividualswhoexperiencethem。thesecurrentindividualestatesofthedesirablemustbeadjustedbyreferencetoanidealstandardofthesociallydesirable。Theextentofthislatterprocessofadjustmentwill，ofcourse，dependuponhowfartheactualcurrentideasandfeelingsofindividualsarekeptinessentialharmonywiththetruestandardofsocialwell-beingbythenaturalevolutionofanorganicsociety。 §；6。Ourtaskinseekingtodeviseamethodforthehumaninterpretationorvaluationofindustryconsiststheninconfrontingthegoodswhichformthenetconsumableincomeofthecommunity，andinfindinganswerstothetworelatedquestions: Whatarethenethumancostsinvolvedintheirproduction？ Whatarethenethumanutilitiesinvolvedintheirconsumption？ Asimplesuminsubtractionshouldthengiveustheresultweseek——sofarasanysuchquantitativecalculusisvalidandfeasible。5 Nowthougheconomists，ofcourse，arewellawarethatmanyoftheprocessesofproductioncontainelementsofpleasureandutilitytotheproducers，whilesomeoftheprocessesofconsumptioncontainelementsofpainandcosttotheconsumers，theyhave，rightlyfromtheirstandpoint，ignoredthesequalificationsintheirgeneralformulae，andhaverepresented\'goods\' fromtheproducer\'ssideasconsistingentirelyofaccumulatedcosts，whilefromtheconsumer\'ssidetheyconstitutepureutility。Thoughourbriefpreliminarysurveyoftheoriginsofindustryindicatesthatnosuchsharpdistinctionbetweenproductionandconsumptioncanultimatelybemaintained，andthatthroughoutthewholecontinuouscareerofgoodsfromcradletogravetheactivitiesbestowedonthemarecompositesofpleasureandpain，costandutility，organicgainandorganicloss，sociallydesirableandsociallyundesirable，itwillbeexpedienttotakeourstartfromthecommonly-acceptedeconomicposition，andtogiveseparateconsiderationtothehumanvaluesunderlyingprocessesofproductionontheonehand，processesofconsumptionontheother。 Thegenerallinesalongwhichsuchaninvestigationmustproceedareunmistakable。 Inordertoexpressbusiness\'costs\'intermsofhumancost，werequiretoknowthreethings: 1。Thequalityandkindofthevarioushumaneffortsinvolvedinthebusiness\'cost\'。 2。Thecapacitiesofthehumanbeingswhogiveouttheseefforts。 3。Thedistributionoftheeffortamongthosewhogiveitout。 Correspondingstrictlytothisanalysisof\'costs\'ofProductionwillbetheanalysisof\'utility\'ofConsumption。Thereweshallwanttoknow: 1。Thequalityandkindofthesatisfactionorutilityyieldedbythe\'economicutility\'thatissoldtoconsumers。 2。Thecapacitiesoftheconsumerswhogetthis\'economicutility\'。 3。Thedistributionoftheeconomicutilityamongtheconsumingpublic。 Thehumanistcriticismofindustryiscondensedintothisanalysis。 Thehumanistrequiresthattheeffortexpendedonanysortofproductionshallbesuchastocontainaminimumofpainfulorinjuriousorotherwiseundesirableactivity。Hiscomplaintisthatindustry，asactuallyorganisedandoperatedunderasystemwhichtreatsallformsofproductivehumaneffortasmarketablegoods，doesnotsecurethishumaneconomy。Thehumanistrequiresthatthepersonssettogiveoutundesirableeffort，\'humancost\'，shallbethosebestcapableofsustainingthisloss。Weakwomenorchildren，forexample，shallnotbesettodoworkheavyordangerousinitsincidence，whenstrongmenareavailablewhocoulddoiteasilyandsafely。Thehumanistrequiresthatundesirableorhumanlycostlyworkshallnotmerelybeconfinedtoclassesofpersonscapableofperformingitmosteasilyandsafely，butthatthedistributionofsucheffortshall，asregardslengthoftimeandintensityofpace，besuchastoreducethehumancostperunitofproducttoaminimum。ThehumanistcriticismofindustryupontheCostssideconsists。pointingoutthatthereisnoadequatelyreliableornormalintendencyforthebusinesseconomyofcoststoconformtothisthree-foldhumaneconomy。 Similarly，turningtotheconsumptionside，thehumanistpointsout: 1。Thatmanyofthe\'goods\'soldtoconsumersareinherentlydestituteofhumanutility，or，worse，arerepositoriesofdisutility；andthatmoneyvaluesisnotruekeytohumanutility。2。Thattheamountofutilityorwelfaretobegotoutofanygoodsdependsuponthecharacter，thenaturaloracquiredcapacity，oftheparticularconsumersorclassesofconsumersintowhosehandstheyfall。3。Thatatrueeconomyofconsumption，therefore，involvestheirdistributionamongconsumersinproportiontotheircapacitytousethemforpurposesofwelfare。Itiscontendedthatthewentworkingofourindustrialsystem，onitsdistributiveandconsumptiveside，makesnoreliableprovisionforsecuringthatthemaximumofhumanutilityshallattachtotheconsumptionofthenationalincome。 §；7。Totestindetailtheexactvalidityofthishumanistcriticismwouldrequireustoexaminethecostsandtheutility，economicandhuman，representedineachitemofallthevarioussuppliesofgoodsandserviceswhichconstitutethenationalincome。Thisismanifestlyimpracticable。 Norisitnecessaryforourpurpose，whichistoestablishasoundmethodofvaluationratherthantoendeavourtoformanexactcomputationofthevaluesitdiscloses。Withthisobjectinviewitwillbesufficienttodirectourenquirytotheacceptedclassesorgradesofhumanactivitiesfiguringaseconomiccosts，andthecorrespondingclassesorgradesofhumanutilitiesaffectedbyconsumption。 Letusbeginwiththe\'costs\'side。 Acceptingthegeneralcategoriesofcostsofproduction，asrent，interestandprofit，salariesandfees，wages(forallotherbusiness\'costs\'，asforinstance，costofmaterial，machinery，fuel，canberesolvedintothese)，letusconsiderwhatisthenatureofthehumancostsforwhichthesepaymentsaremade，inthechiefordersofindustry，andhowthesehumancostsarerelatedtotheeconomiccosts。 Attheoutsetofthisenquiry，however，itwillbeconvenienttoeliminateoneeconomic\'cost\'ofconsiderablemagnitudefromourconsideration，viz。 economicrent。For，althoughNature，ortheearth，mayinastudyofobjectiveindustryberegardedasaproductiveagent，yieldingmaterials，physicalenergy，andspecialutilities，thisworkinvolvesnohumaneffort，andthereforeisrepresentedbynohumancost。Thisstatement，ofcourse，bynomeansimpliesthathumanforesightandactivitiesplaynopartintheeffectivesupplyoflandandothernaturalresources。Suchresources，hithertoexistingoutsidetheindustrialsystem，arecontinuallybeingdiscovered，broughtwithinreachanddevelopedbyhumanskillandeffort，whileneworimprovedusesarecontinuallybeingobtainedfromnaturalresourcesalreadywithinreach。Insuchprocessesofdiscoveryanddevelopmentmuchcapital，ability，andlabour，areconstantlyengaged，thecostsofwhichmustbedefrayed。Moreover，incertainusesoflandforagriculturalandotherpurposes，provisionmustbemadeforwearandtearorreplacement。 ButallsuchcostsorexpensesarereallypaymentsforthecapitalandlabouremployedOnthisworkofdevelopmentorupkeep。Theyarenotpaymentsfortheuseofnaturalresources。Theyarenoteconomicrent。Thatbusinesscosthasnohumancostattachedtoit。Fromthestandpointofthemanagerofaparticularbusinessthepaymentofrentisnecessarytoenablehimtogettheuseofthelandorothernaturalagentherequires。Whereprivatepropertyinlandexists，thepaymentofsuchrentislegallynecessary。 Wherethemaintenanceofsuchlegalrightshasenabledlandvaluestoexchangefreelywithotherformsofwealth，amoralexpediencymaybeclaimedforthepaymentofrent。Butnohumancostcorrespondstoit。Intheorganicinterpretationofindustry，itfiguresaswaste。While，therefore，dueaccountmustbetakenofthisdivisionofwealthorhumanutilitiesinanyfinalsurveyofoursocialeconomy，itmaybedismissedfromourimmediateconsideration。 §；8。Inordertogetaclearunderstandingofindustryregardedfromthestandpointofhumancosts，itwillbeconvenienttofastenourattentionfirstonthestructureandworkingofthesinglebusinesseswhicharetheproductiveunitsofthesystem。Forthebusinessisacloser，morecompact，andmoreintelligiblestructurethanthetrades，markets，orotherlargerdivisionsofindustry。Weshall，therefore，endeavourtoanalysethecombinationsofhumaneffortastheyareexpressedinthevarioustypesofbusiness，soastodiscoverandtoestimatethehumancoststhatareinvolved。 ThoughthetermBusiness，asweuseithere，mustbeextendedsoastoincludeallsortsofcentresofeconomicactivitynotcommonlyincluded，suchasaschool，adoctor\'spractice，atheatre，itwillbebesttotakeforourleadingcaseanordinarymanufacturingbusiness。Herearegatheredintoclosecooperationalargenumberofhumanandnon-humanfactorsofproduction。Thecentreofthelittlesystemisthemanager，employer，ordirector，whoseideas，desires，andpurposesgovernandregulatethemovementsofthevariousformsofcapitalandlabour。Thismanhasgottogetheronhispremisesaquantityofmachineryandotherplantwhichexpressacomplicatedgrowthofinventionrunningfarbackintothepastandderivedfromgreatnumbersofhumanbrains。Thesemachinesandplantembodyingtheseinventiveideasweremadebypastlabourofvariouskinds。Thismanagerordirector，inplantingtheBusiness，chosewhatseemedthebestapparatusforthepurposeshehadinmind。Heinducedanumberofinvestorsorcapitaliststolendthemoneywhichenabledhimtoobtainthisapparatus，andtohirethevarioussortsoflabourpowerrequiredtooperateit。Thislabourpoweritselfistheproductoftheenergiesofmaninthepast，thedirectancestryofthelabourerswhoproducedthebeingsthatgiveforththelabour-power，thepastgenerationsofmenwhosegrowingknowledgeandpracticeyieldedthetrainingandthehabitsofindustryandofcooperationessentialfortheproductivenessoflabourinthemodernartsofindustry。 Hereareevidentlymanydifferentsortsofhumaneffort，someofthemphysical，othersintellectual，somepleasurable，otherspainful，somebeneficial，othersdetrimental，totheindividualswhogiveouttheeffort，ortosociety。 AlloftheseproductiveenergiesrankinPoliticalEconomyas\'costs\'，andassuchareremuneratedoutoftheproduct。Whichofthesearehuman\'costs\'andinwhatsenseandwhatdegree？Sucharethequestionsthatlieimmediatelybeforeus，ifweareseekingtoreduceour£；2，000，000，000 totermsofhumanwell-being。 §；9。Inthisconversionofeconomicintohumancostswecanbestbeginbyconsideringthefundamentaldistinctionbetweencreationandimitation，enforcedwithsomuchpenetrationbytheFrenchsociologist，M。Tarde。 Itisnotinitsprimarysignificanceadoctrineofcosts，butadivisionofproductiveenergyintotwoclasses。Allsocialprogress，indeedallsocialchangesupwardsordownwards，accordingtothistheory，comesaboutinthefollowingway。Someunusuallypowerful，original，orenterprisingperson，assistedoftenbygoodfortune，makeswhatiscalledadiscovery，sometrueandusefulwayofdoingthingsorofthinkingaboutthings，orevenofsayingthings。Thisnewtruth，newphrase，newdodge，iscapableofbeingrecognisedasinterestingoruseful，notonlybyitsdiscoverer，butbythemanywhohadnotthewitorthecourageorthelucktodiscoveritforthemselves。Bysuggestion，infection，contagion，orconsciousimitation，orbyanycombinationofthoseforcesandhabitsthatconstitutethesocialnatureofman，thenoveltybecomesadoptedandappliedbyanever-growingnumberofpersons，overawideningarea，untilitbecomesanacceptedpracticeorconventionofthewholesociety。Everynewreligiousormoralideaorsentiment，everyscientificlaw，everyinventionintheartsofindustry，everydevelopmentofanewtaste，thusproceedsfromoneormorespecialcentresoforiginaldiscovery，andspreadsbyawell-nighautomaticprocessofexpansionorimitation。 §；10。Nowthisdistinctionbetweencreationandimitation，aspropoundedandappliedbyM。Tarde，isdoubtlessopentoseriousobjections。Thepsychologyofimitationisshallow，forunderthissingletermiscoveredwhatareinrealitymanydifferentactions，whilethewholeconceptionofimitationasaprocessistoomechanical。Tosomeofthesedefectsweshallreferpresently。Butthough，regardedasanexplanationoftheprocessesofhumanprogress，theantithesisofcreationandimitationdoesnotsatisfy，itfurnishesanexceedinglyusefulstartingpointtowardsapsychologicalanalysisofeconomicprocesses。Forintheevolutionofindustryitisquiteevidentthatimprovementsdocomeaboutinthismanner。Acomparativelysmallnumberoforiginalorcuriousmindsinventnewusesornewwaysofdoingthingsthatarebetterthantheold，ortheyrecognisethevalueofnewideaswhichothersfailedtorecognise，andtheyhavetheenergyandenterprisetoputthenewideasintooperation。Manyoftheinventionsarenotgoodenoughorbigenough；onlybyaconsiderablenumberoflittleincrementsofnoveltywillanewmachine，oranewprocess，emergeintoeconomicvitality，or，inbusinesslanguage，becomeprofitable。Butwhereaninventionorimprovementhasonceemerged，Stationmultipliesitanditpassesintogeneraluse。6 Acomparativelysmallnumberofcreativeorinventivemindsthusundoubtedlyplayanexceedinglyimportantpartinthedevelopmentofindustry。ThebriefactsofthinkingofaWatt，aStevenson，aSiemensoranEdison，appeartobeincomparablymoreproductiveineffectthantheroutinelife-toilofthemanythousandsofworkerswhosimplyrepeathourbyhour，daybyday，yearbyyear，somesimplesingleprocesstheyhavelearned。Itistruethatinventionistoonarrowatermproperlytoexpressthedistinctionweareexaminingbetweenthatworkwhichexpressesthecreativeenergyofmanandthatwhichisessentiallyimitative。Forifasuccessfulinventionfurnishesmachineryormethodswhichthusmultiplytheproductivityofhumanlabour，theskilfulorganisationandadministrationofabusiness，theworkdonebytheemployer，hasthesamesortofeffect。Anableemployerwhodirectshisbusinesswithknowledgeandforesight，gatheringtogetherjusttherightmen，materialsandmachinery，producingtherightgoodsattherighttime，andmarketingthemproperly，seemsbyhispersonalabilitygreatlytoenlargethevaluableoutputoftheentirebusiness。Inabigbusinessheseemstobeasproductiveasathousandmen。 §；11。SoabroaddistinctionisbuiltupbetweenAbilityandcommonLabour，thecreativeandthemerelyimitativeworkofman。Fromthisdistinctionhasbeendrawnaningeniousdefenceofthecurrentinequalitiesindistributionofwealth。Sincealltheprogressofmodernindustryisreallyattributabletotheabilityandenterpriseofasmallgroupofinventing，organisingandenterprisingpeople，commonlabourbeinginitselfnomoreskilful，nomoreproductivethanbefore，therecan，itismaintained，beneitherjusticenorreasonintheclaimsoflabourtoalargershareofthathugeincreaseofwealthduetotheabilityofthefew。 Idonotproposejustnowtoexaminethevalidityofthiscontention。 WhatcriticismIhavetoofferwillemergeinthecourseofmycloserexaminationofthenatureofindustrialwork。AtpresentIwillonlyaskreaderstoobservethatthedoctrineassumesthatpaymentforindustrialservicesmustoroughttobedeterminedbytheproductivityofthoseservices，notbytheir\'cost\'。 Now，ourimmediateenquiry，wemustremember，isintohumancosts。 Andthedistinctionbetweencreativeandimitativeworkisparticularlyinstructiveinitsbearinguponhumancosts。Forifwegradethevarioussortsofhumaneffortthatcontributetotheproductionofwealthaccordingtotheamountofcreativeandimitativecharactertheyseemtopossess，somevaluablelightwillbethrownuponthedistributionofhumancostsamongthevariousclassesofproducers。 LeavingoutofconsiderationLand，which，asafactorinproduction，involvesnooutputofhumaneffort，weshallfindthattheprovisionandapplicationofalltheotherfactors，ability，capitalandlabour，involvesomehumaneffortbothofacreativeandanimitativetypeandcontainsomeelementsof\'cost\'。 ForthepurposeofthisanalysisIproposetoclassifyproductiveactivitiesunderthefollowingheads:Art，Invention，ProfessionalService，Organisation，Management，Labour，Saving。Thewarrantyforthisclassificationwillemergeinthecourseoftheanalysis。 NOTES: 1。IhavetakentheestimateofthetotalincomeofthenationmadebyMr。FluxinhisReportsoftheFirstCensusofProductionfortheUnitedKingdom(1907)asthebasisfortheroundfiguresadoptedhereforaggregateincomeandforsavings。 AsamatteroffactMr。Fluxassignstosavingsaslightlyhigherfigureandproportionofincomethanthattakenhere。Butsinceforourpurposenothingdependsupontheexactitudeofthefigures(andindeedMr。Fluxclaimsnosuchexactitudeforhis)itismoreconvenientforustotaketheroundfiguresofourtext，thoughprobablyinbothinstances，i。e。，aggregateincomeandsavings，theyaresomewhatbelowthetruefiguresfor1912。 2。Thereisnocommonerstumbling-blocktothebeginnerinthestudyofPoliticalEconomythanthefactthattheincomeofarichman，amountingtosay£；10，000，whenpaidawaytopersonswhosellhimgoodsorpersonalservices，seemstocount\'overagain\'asincomesofthesepersons。Why，theyaredisposedtoask，shouldtheprivatesecretarywhoreceives£；400 outofthis£；10，000berequiredtopayanincome-taxuponasumwhich(astheysay)hasalreadypaiditsshareaspartofthe£；10，000？ Nothingbutagraspofthefactthatthesecretaryproducesa\'real\'incomeof\'services\'correspondingtothis£；400whichhereceivesclearsupthemisunderstanding。 3。Abouthalfofthispassesundertheheadofover-seasinvestmentsintotheindustrialsystemsofothernations，thoughtheinterestuponthisforeigncapitalisavailableforconsumptioninthiscountry。 4。WealthandWelfare，Chap。I。 5。Theexceedinglyimportantquestionofthelimitstothevalidityofsuchaquantitativecalculusisdiscussedintheconcludingchapter。 6。Tardeappliesthesameterm\'imitation\'totwodifferentsortsofact。Thebusinessmanoremployerwhorecognisessomeimprovedmachineormethodandcopiesitisanimitator。Everyimprovementthusstartingfromacentreofdiscoverybecomesdiffusedthroughoutatrade。 Buttheterm\'imitation\'isalsoappliedtotheregularworkoftheroutineoperator，whoisconstantlyengagedinrepeatingsomesingleprocess。 Now，regardedaspsychologicalandaseconomicfacts，thesetwoimitationsaredistinct。 Theformeristheadoptionofadiscoveryinvolvinganactofrecognitionandofjudgment——notapurelyautomaticimitation——atanyrateuntilithasbecomeacommonforminthetrade。Theemployerwhocopiesoradoptsanimprovementperformsasingleact——heincorporatesthisimprovementinthetechniqueofhismillorshop——onceforall。When，however，itissaidofamachine-workerthathisworkisimitative，somethingdifferentismeant。Heiscontinuallyrepeatinghimself，eachactofrepetitioninvolvinglessconsciousnessintheadaptationofmeanstoend。CHAPTERIV:THECREATIVEFACTORINPRODUCTION §；1。Themostdistinctivelycreativekindofhumanworkiscalledart。Inmotiveandinperformanceitisthefreestexpressionofpersonalityinwork。Theartistinwhataretermedthefinearts，e。g。，aspainter，poet，sculptor，musician，desirestogiveformalexpressiontosomebeautiful，trueorotherwisedesirableconception，inordereithertosecureforhimselfitsfullerrealisationorthesatisfactionofcommunicatingittoothers。 Itisnot，however，necessaryforourpurposetoenterupontheexactpsychologyofartmotivesorprocesses。Indeed，wearenotconcernedwiththewholerangeofartisticactivity。Sofarastheartistworkssimplyandentirelyforhisownsatisfaction，inordertoexpresshimselftohimself，hecannotbedeemedtobecontributingtotheeconomicincomeofthenation。Forustheartististheproducerofamarketablecommodity，andweareconcernedtodiscoverthe\'economic\'andthe\'human\'costswhichheincursinthiscapacity。 Nowsofarasthepainter，poet，ormusicianworksaspureartist，exercisingfreelyhiscreativefaculty，hiseconomic\'costs\'consistmerelyofhis\'keep\'，thematerialandintellectualconsumptionnecessarytosupporthimandtofeedhisart。Thenethumancostsofthecreativeworkarenil。 Forthoughallcreativeworkmayinvolvesomepainsoftravail，thosepainsaremorethancompensatedbythejoythatachildisborn。Evenifwedistinguishthecreativeconceptionfromtheprocessofartisticexecution，whichmayinvolvemuchlaboriouseffortnotinterestingordesirableinitself，wemuststillrememberthattheselaboursaresustainedandendowedwithpleasurablesignificanceasmeanstoaclearlydesiredend，sothatthewholeactivitybecomesinarealsensealabouroflove。Inotherwords，thehumancostsareoutweighedbythehumanutilityevenintheprocessesofproduction，sothatthepurepracticeofartisanetincreaseoflife。Theartist，who，followingfreelyhisowncreativebent，producespictures，playsornovelswhichbringhimingreatgains，isthusinthepositionofbeingpaidhandsomelyforworkwhichisinitselfapleasuretoperformandwhichhewoulddojustaswellifhewereonlypaidhishuman\'keep\'。Thewastefulsocialeconomyoftheordinaryprocessofremuneratingsuccessfulartistsneedsnodiscussion。ForthetrueartfacultyresemblesthoseprocessesbywhichNatureworksintheorganicworldfortheincreaseofcommoditieswhosecomparativescarcitysecuresforthemamarketvalue。Apoetwho\'doesbutsingbecausehemust，\'andyetispaidheavilyfordoingso，isevidentlygettingthebestofbothworlds。Ourpresentpoint，however，isthatthe\'economiccost\'whichhispublisherincursinroyaltiesuponthesalesofhispoemisattendedbynonet\'humancost\'atall，butbyapositivefundof\'humanutility\'。Andthisholdsofalltrulycreativework:theperformanceinvolvesanincreaseoflife，notthatlosswhichistheessenceofallhumancost。 §；2。Ihavespokenofthepure\'artist\'。Theartisticproducerwhosellshisfreedomtothemoneyedpublicmayincurtheheaviestofhumancosts，thedegradationofhishighestquality。Thetemptationtoincurthesemoralandintellectualdamagesisgreatinanynationwherethedominantstandardofpersonalsuccessismoneyincomeandexpenditure。Butperhapsthereisafalsesimplicityintheromanticviewofartisticgenius，whichassumesthattheartistandhisworkarenecessarilydegradedbyinducementstoworkforapublic，insteadofworkingforhimselfalone。Itmay，indeed，beheldthatanartistwhoissoself-centredastohavenoconsciousconsiderationoftheartisticneedsandcapabilitiesofhisfellow-men，issoessentiallyinhumanastobeincapableofgreatwork。Theuseofanart-giftforcommunionwithothers，involvingsomemeasureofconscioussocialdirection，seemsinvolvedinthehumanityoftheartist。Evenwhenthatdirectiontakestheshapeofmarket-prices，itdoesnotnecessarilyincurtheviolentcensurebestowedbyromanticpersons。Whenasoundpublictasteoperates，thisdirectionmaybejustified。TheportraitswhichMrG。F。Wattspaintedreluctantlyformoneyneednotbeconsideredawasteofhispowers。Thenature，again，ofmanycreativemindsseemstorequiretheapplicationofanexternalstimulustobreakdownacertainbarrierofsterileself-absorptionorofdiffidence，whichwouldrobhumanityofmanyofthefruitsofgenius。 Atanyrateitneednotbeassumedthatworkingforapublic，orevenforamarket，isessentiallyinjurious。Wherethetastewhichoperatesthroughthedemandisdefinitelybase，andwherethepracticeandtheconsciousnessofhavingsoldone\'ssoulformoneyareplainlyrealised，nodoubtcanexist。Butwherepublicsympathyandappreciation，evenexercisedthroughthemarket，inducetheartisttosubordinatesomeofhisprivatetastesandproclivitiestotheperformanceofworkwhich，thoughofsecondaryinteresttohimself，hasasoundsocialvalue，thepressureofdemandmayproducealargerbodyofrealwealthatnorealhumancosttotheproducer。 Verydifferent，ofcourse，aretheinstancesurgedwithsomuchpassionateinsistencebyRuskin，wheredepravedpublictastes，springingdirectlyfromluxuryandidleness，debauchthenaturaltalentsofartists，andpoisontheveryfountsofthecreativepowerofanation。Corruptiooptimipessima。 Theproductionofbaseformsofart，inpainting，music，thedrama，literature，theplasticarts，mustnecessaryentailthehighesthumancosts，thelargestlossofhumanwelfare，individualandsocial。Forsuchanartistpoisonsnotonlyhisownsoulbutthesocialsoul，adulteratingthefooddesignedtonourishthehighestfacultiesofman。 Thereis，however，asenseinwhichitistruethateverypressureofsocialdirectionordemandupontheartistimpairsthecreativecharacterofhiswork。Forsuchsocialdemandrestsuponasimilarityoftasteamongthemembersofapublic，anditssatisfactionrequirestheartisttorepeathimself。Anartist，endowedbytheStateorsomeotherbody，mightexpresshimselfinuniquemasterpieces，aswasthecasewiththegreatartistsofantiquityoroftherenaissancewhowerefortunateintheirprivateorpublicpatrons。Butart，supportedbynumerousprivatepurchasers，whosesocialstandardsmouldtheirtastestotolerablycloseconformity，muststooptoqualifycreationbymuchimitativerepetition。Thisofteninvolvesalargehumancost，imposinganinjuriousspecialisation，mannerismsormechanicalroutine。Thisisparticularlytrueofartswherearefractorymaterialgivesgreatimportancetotechnique，andwherethepracticeofthistechniquenecessarilyrestrictsthespontaneityofexecution。 §；3。ThedescentfromArtisttothemoreorlessmechanicalproducerofart-productsismarkedbymanygrades。Thereisthegradewhichdoesnotpretendtoanyfreeexerciseofthecreativefaculty，confiningitselftointerpretationorexecution。ThisinmusicandincertainotherfineartsissignifiedbyadoptingtheFrenchterm\'artiste\'。Butsomeofthisinterpretativeworkaffordslargescopefortrulycreativework。Atraditionalorwrittendrama，ascoreofmusic，orothernecessarilyimperfectandhalf-mechanicalregisterofsomegreatcreativework，requiresaconstantprocessofre-creationbyasympatheticspirit。Insuchartsthereisagenuinelycreativecooperationbetweentheoriginalcomposerandhisinterpreters，thelatterenjoyingsomereallibertyofpersonalexpressionandgivingmerittotheperformancebythisunionofreproductiveandcreativeachievement。 Thegreatactorormusicianmaythusevencometousetheworkoftheplaywrightorthecomposerassomuchmaterialforhisowncreativeexpression。Hemayevencarrythistoanexcess，oustinghispredecessorandparasiticallyutilisinghisreputationforthedisplayofhisownartisticqualitiesordefects。Inpaintingandsculpture，ofcourse，wecometoamodeofskilledimitation，thatofthecopyist，wherethefreecreativeelementisconfinedtofarnarrowerlimits。Themainskillhereisthatoftechnicalimitation，notofinterpretation。 Aswedescendfromthehighergradesofdistinctivelycreativearttotheseinterpretativeandmoreorlessimitativegrades，itwillbeevidentthatlargerhuman\'costs\'ofproductionareapttoemerge。Allimitationorrepetition，eitherofoneselforofanother，isnotinhuman。Thereisarhythmintheprocessesoforganiclifewhichevenrequiressomerepetition。 Butthisrepetitionisneverprecise，fororganichistorydoesnotexactlyrepeatitself。Theattempt，therefore，toinduceapersontoperformanintricateprocessmanytimesandatshortintervalswithgreatexactitude，isagainsthumanity。Itinvolvessomephysicalandmoralinjury，ahumancost。Weshallconsiderthemoreseriouseffectsofthisprocedurewhenwecometoconsiderthatworkofindustrymostwidelyremovedfromart。 Inconsidering，however，thesub-artisticworkersitwillnotberighttoratethehumancoststoohigh。Agooddealofscopeforpersonalsatisfactionremainsinmanyofthesekindsofwork。Thesenseofskillinovercomingdifficulties，evokedwhereveranyintricateworkisdonebybrainandhand，yieldsavitaljoy。Thistheexecutantartist，eventhoughmainlyacopyist，experiencesinnomeanmeasure。Itsustainsafinevitality，and，whatissignificantforourparticularenquiry，itinvolveslowhumancost，unlessthepaceandstrainofrepetitionarecarriedtoexcess。Whereveranyreasonablescopeforindividualexpressionorachievementremains，thoughthemainbodyoftheproductmayberigorouslyprescribedbycloseimitation，ororderedbymechanicalcontrivance，theartspiritlivesandthehumancostsarelow。Thephotographer，oreventheskilledperformeronthepianola，retainsalargermeasureofthenatureandthesatisfactionoftheartistthanamerelycursoryconsiderationofhisoccupationwouldsuggest。 Aconsiderableandgrowingproportionofproductiveenergyisgivenoutinthesevariouslevelsofartisticorcreativework，andtheproportionofthenationalincomerepresentedbythisproductisgrowingwithfairrapidityineverymoderncivilisedcommunity。 §；4。Fromthefineartsweproceedbyaneasytransitiontotheprocessesofdiscoveryandinventionwhichplaysoimportantaroleinprogressiveindustryandareleadingchannelsofcreativeactivity。Theprocessofdiscoveringanewrelationbetweenphenomena，establishinganewfactoranewlaw，hasmuchincommonwithartisticcreation。Thescientificimaginationiscreativethroughitsuseoftheexistingmaterialofknowledgetoframehypotheses。Indeed，thedisinterestedplayofthemindintheexplanationoffactsbybringingthemwithintherangeofscientificlaws，or，conversely，inextendingtherangeofknownlawstonewgroupsoffacts，isaprocessofadventurecontainingnoveltiesofinsightandofoutlookakintoartisticproduction。Thosephilosophers，indeed，whoholdthatthelawsofsciencearenothingotherthanthepatternswhichmanimposesuponthephantasmagoriaofexperienceforhisownprivateends，wouldmakethewholeofscientificdiscoverymerelyanart，differingfromthefineartsinhavingutilityratherthanbeautyforitsgoal。Butweneednotpressthisinterpretationinordertoperceivethesimilarityofalldisinterestedpursuitofknowledgetothefinearts。Whenamathematicianspeaksofabeautifulsolutiontoaproblem，heisnotusingthelanguageofhyperbole，butattestingtothepresenceofanaestheticemotionattendantonthemodeinwhichatruthisreachedandstated。Modernphysicsisfullofdiscoveriescontainingsomesuchartisticquality，e。g。，thegroupingoftheelementsintheproportionsoftheiratomicweightwhichMendelieffestablished，orSirW。Ramsay\'srecentdiscoveryoftherelationsbetweenheliumanditschemicalkindred。Butoneneednotlabourtheanalogybetweenartistandscientist。Forourmainenquiryisintohumancosts，anditwillbeadmittedthatthezestofthescientificstudentandthejoyofdiscoveryareemotionsasvitalandasvaluableinthemselvesastheemotionsoftheartist。Sofar，then，asthescientistcomeswithinourpurviewasaproductiveagent，hisactivitymustrankwiththeartist\'s，asyieldingmorehumanutilitythancost。Itmay，however，becontendedthatthemanofscienceseldom，assuch，entersintothefieldofindustrialproductivity，savewhenheaddstohisscientificworktherileofinventor。Withtheadventoftheinventortheattainmentofknowledgeisbenttosomepurposeofindustrialutility。Butthoughsomedefinitelygainfulpurposemaylurkintheinventor\'smind，itdoesnotcommonlyimposeuponhisworkthedistinctivecostsoflabour。Forinvention，howevernarrowlyutilitarianinitsobjectsandresults，stillremainsintherealmofcreation，stillyieldsthesatisfactionofaproductionthatisinterestingandelevatinginitself。Itseemstomatterlittlewhethertheinventiveprocessisalargeboldspeculativehandlingofsomeprobleminwhichtheinventorisapioneer，orwhetherheisengageduponthenarrowertaskofbringingthepastinventionsofmanygreatermindsuptothelevelofindustrialutilitybysomesmallneweconomy。Theprocessofinventioncarriesthequalityofinterestingnoveltywhichfromourstandpointisthebadgeofcreativework。Weshall，doubtless，beremindedatthispointthathistoryshowsthepathoftheinventortobealmostashardasthatofthetransgressor，strewnwithtoilanddisappointments。Butthoughagreatinvention，likeagreatworkofart，oftenconcealsanarduousandpainfulgestationundertheappearanceofaspontaneousgeneration，toomuchmustnotbemadeofsuchacost。 Thetrainingofacreativefaculty，thoughlikealltrainingitinvolvesanexerciseandadisciplinenotpleasinginthemselves，can，indeed，scarcelyberegardedinoursenseasacostoflabour。Itisafurtheranceandnotarepressionofpersonality:thepracticeitinvolves，thetechniqueitimpartsarenotmerelymechanicalaptitudes，andtheyalwayscarryinthemtheconscioushopeofcreativeachievement。Theeducationofartisticorinventivefacultyinvolvesnorealwearandtearofhumanvitalitybeyondthatphysicalwastewhicheveryprolongedoccupationinvolves。Inventionitselfinvolvesnocost。Innoneoftheseoperationsisthecharacteristicoflabourpresent，thegiving-outofsomesinglesortofenergybyconstantrepetitionofidenticalactsinanarrowgrooveofendeavour。Suchactsoflabourareindeedinimicaltoinvention:theactofinventioncomescommonlyintimesofleisure。Itistheproductmoreofplaythanofwork，andtheelementofinstinct，perhapsevenofchance，isoftenafactorofsuccess。 §；5。M。Tarde，inhisabruptcontrastbetweencreationandimitationorlabour，hasdogmatisedupontherarityofthecreativefaculty，andcertainothersociologistsandpoliticianshavebusilyengagedthemselvesinsowingfearslestthegreedoforganisedlabourortherashnessofsocialisticlegislationshould，byrobbinggeniusandabilityofitsproperrewards，tamperwiththespringsofindustrialprogress。Now，theimportantquestionoftheeconomicrewardofabilityandgeniusmaybedeferreduntilwehaveascertainedmoreclearlywhatpartthesecreativequalitiesplayinallthedifferentmodesofproductiveenergy。Buttheassumptionthatartisticandinventivefacultyisexceedinglyrare，becauseithassoseldombeendisplayed，mustbeboldlychallenged。Thestudiesofmodernpsychologistsandeducationalistsrefuteit。Onthecontrary，thereisreasontobelievethathumannatureisexceedinglyrichinallsortsofvariationsfromthenormal，andthatverymanyofthesevariationshavevaluableuses，providedthatsuitableconditionsfortheirdiscovery，trainingandapplicationarepresent。 Thenotionthatgenius，likemurder，will\'out\'isafalsesentimentalism。 Somemenofgeniusdo，indeed，maketheirwayinspiteofadversecircumstances，forcingthemselvesoutoftheobscurityoftheirsurroundings:they\'breaktheirbirth\'sinvidiousbar，andbreasttheblowsofcircumstance，andgrasptheskirtsofhappychance。\'Thatistosaysomesortsofgeniusareunitedwithqualitiesofaudacity，persistence，andluck，whichenablethemtowin\'through\'。Buthowmanymenofgeniusdonotpossessthesefacultiesandthereforedonotemerge，itisfromthenatureofthecaseimpossibletolearn。Butitisprobablethatmuchgenius，talent，andability，capableofyieldingfinesocialservice，islost。Indeeditisprobablethatmanyofthefinesthumanvariations，involvingunusualdelicacyoffeelingandperhapsofphysique，willbynaturalnecessitybeincapacitatedformakingtheirwayandforcingrecognitionamiduncongenialsurroundings。 Itislikelythatfarmorehumangeniusislostthanissaved，eveninthemorecivilisednationsofto-day。Forwhataretheconditionsofthesuccessfulutilisationofgenius，andforwhatproportionofthepopulationaretheysecurelyattained？ Leisureisafirstconditionforallfreeandfruitfulplayofthemind。Veryfewinventionshavecomefromworkerscompelledtokeeptheirnosestothegrindstone，andunabletolettheireyesandthoughtsplayfreelyroundthenatureoftheirwork。Thisiswhyslaverycontributedsoverylittletothedevelopmentoftheindustrialarts:thisiswhysocomparativelyfewinventionsofimportancehavebeenmadebyhiredlabourersinthisandothercountries。Thestrongesteconomicpleaforashorterandalighterworking-dayisthatitwillliberateforinventionandindustrialprogressthelatentcreativeenergyofcountlessworkersthatisstifledunder。theconditionsofalongday\'smonotonoustoil。 Educationisthenextcondition。Thegreatmassofthepopulationinthiscountryhavenosuchopportunityofeducationasisneededtodiscover，stimulate，andnourishthecreativefacultiesinart，science，andindustrialinvention。Oneneednotoverratewhateventhebesteducationcandoforhumantalentofthecreativeorder。Indeed，theeducationoftheschoolsmaysometimesratherinjurethanimprovethefinestfaculties。Buteducationcandooneincomparableservicetonativegeniusortalent。Byputtingthesensitivemindofayoungmanorwomanincontactwiththeinnumerablewavesofthoughtastirintheintellectualatmospherearound，itsuppliesthefirstessentialofallcreativeactivity，thefruitfulunionoftwothoughts。Untilallthenewmindsbroughtintotheworldareplacedinsuchfreecontactwitheveryfertilisingcurrentofthoughtandfeeling，andenjoyfree，fullopportunitiesofknowingthebestthathasbeenthoughtandsaidinalldepartmentsofhumanknowledge，wecannottellhowmuchcreativefacultyperishesforlackofnecessarynutriment。 §；6。Fromartisticandinventiveworkwhichisessentiallycreative，enjoyable，vitallyserviceableandcostless，weproceedtoreviewtheregularskilledmentalworkoftheprofessionalandadministrativeclasses。 ThebulkoftheproductiveenergyclassedasAbilitycomesundertheseheads。 Itisevidentthatinmostofthisworkthecreativequalityisblendedinvariousdegreeswithimitationorroutine。Wepassfromthemoremiraculous，interesting，andrapidmodesofproductiveachievementtoalowerlevel，wheretheexpenditureoftimeandeffortisgreaterandwheretheterms\'practice\'and\'practitioner\'themselvesattestthemoreconfinednatureoftheactivities。Therecanbenodoubtthatthepracticeoflawormedicine，eveninitshighestwalks，involvesagooddealoftoilsomeandalmostmechanicalroutine，thoughthemostsuccessfulpractitionersgenerallyshiftthebulkofthisburdenontothelowergradesoftheprofession。 Thepracticecalled\'devilling\'inthelawillustratesmymeaning。 Buteveryprofessionhasitslowergradesofroutineworkers，assistants，dispensers，nurses，clerksandothers，whosesphereoflibertyiscloselycircumscribed，andwhosework，althoughinvolvingsomequalitiesofpersonalskillandresponsibility，mainlyconsistsincarryingoutorders。 Thisconsiderationofthesubsidiaryprofessionalservicesbringstolight，however，acertaindefectintheuseoftheantithesisbetweencreationandimitation，regardedasanindexofhumanlydesirableandhumanlyundesirablework。 Mererepetitionorcloseroutineisnotthedistinctivecharacterofmuchofthiswork。Theworkofaprivatesecretary，clerk，orothersubordinatetoaprofessionalmanorahighofficial，maycontainmuchvarietyandnoveltyindetailoreveninkind。Thesamemaybetrueoftheworkofavaletorotherpersonalattendant。Itappliestoallworkwhichconsistsincarryingoutanother\'sorders。Theremaybeplentyofvarietyandscopeforskillinsuchwork；initsinitialstage，asconceivedbythechieforemployer，itmaycontainelementsofcreativeenergy。Butthesubordinatedoesnotreaptheseelementsofpersonalinterestbecausetheinitiationoftheprocessdoesnotrestwithhim。Theessentialsoftheworkareimposeduponhimbytheintellectandwillofanother:neitherthedesignnorthemodeofexecutionishisown。Though，therefore，hisworkmaynotconsistinmereroutine，butmaybewidelyvaried，thefactthatitisnotproperly\'his\'work，theexpressionof\'his\'personality，deprivesitofallqualitiesofcreationorachievement，savesuchfragmentsasadheretothedetailsthatare\'lefttohim。\'Suchworkmay，indeed，bedescribedasimitative，inthatitconsistsinexecutingadesignprescribedtohimbyanother。 Butifthetermimitationberequired，asitis，todesignatethesortoflabourwhichconsistsinconstantrepetitionofasingleactorprocess，itwouldbebettertomarkthisdistinctionbetweenfreeagentandsubordinateinadifferentway。Thesubordinationofthesecretaryortheclerkinvolvesthehumancostofasurrenderofhispersonaljudgmentandinitiative。 Totheextentthathedoesthis，hebecomesaninstrumentofanother\'swill。Theextenttowhichthisinvolvesahumancostwillvarygreatlywiththeparticularconditions，technicalorpersonal。Wheresuchsubordinationbelongstogenuineeducationorapprenticeship，orwhereclosesympathyandmutualunderstandinghappentoexistbetweensuperiorandsubordinate，sothatthemindofoneisthemindofboth，nohumancostatallbutahumanutilitymayemerge。Or，inothercases，thetechnicalnatureoftheworkmayinvolvethenecessityofleavingtothesubordinateagooddealofdiscretionandacorrespondinglylargefieldforpersonalexpression。 Butwherethesubordinatebecomesthemeretoolofhismaster，aheavycostisentailed。Thatcostisheavierindeedthaninordinarymanualroutinelabour，becauseitinvolvesmoredirectlythesubordinationofthemindandwilloftheworker。Partofthedistastefordomesticandothercloselypersonalserviceisduetothecloserbondageofthewholepersonalitythatisinvolvedintherelation。Itisnotsomuchthattheworkisintrinsicallydullorunpleasantasthatitencroachesuponpersonalityandinhibitsinitiativeandachievement。 §；7。Theworkofthehighest，mosthonouredandbestremuneratedmembersoftheprofessionsretainsessentiallythequalityofpersonalachievement。Itconsistsofanumberofdetachedandusuallybriefactsofintellectualskill，theformationofajudgmentuponthemeaningormeritsofacomplicatedcase，thepresentationofthatjudgmentinadviceorargument，thebringingintellectualandmoralinfluencestobearuponsomelineofconduct。 Insomeinstances，asintheargumentofadifficultcaseincourt，ortheconductofacomplicatedBillinParliament，prolongedandarduousexertion，bothmentalandphysical，maybeinvolved。Evenwheretheseparateactsrequirenoprolongedoutputofenergy，aprofessionalcareer，comprisinglongseriesofsuchacts，maystrainorexhaustthementalandphysicalresourcesevenofastrongman。Thougheachcasewillbedifferent，andwillcallforqualitiesofpersonalskillandjudgment，interestingandagreeableintheirexercise，allwillfallwithinthelimitsofaspeciallineofpractice，andthisspecialismwillwearuponthenervoussystem，bringingtheactivityunderaneconomyofcosts。Thetemptationsofabusyandsuccessfulprofessionalcareerinsidiouslysaptheinterestandjoywhichattendtheearlierstruggle，unlessamanhastherarewisdomandthestrengthofwilltolimithisamountofworkandincome。 Whatissaidhereofthecompetitiveprofessionsisinlargemeasureapplicabletotheofficialgradesofthepublicservices。Thehighersortsofofficialworkcontinuallyinvolvequalitiesofjudgmentandimagination，andthereislittlemererepetition。Asonedescendstothelowerofficiallevels，theroutineorrepetitiveelementincreases，untilonereachesasortofofficial，theliberty，initiative，skill，andinterestofwhoseworkhardlyexceedsthatoftheordinarymachine-feederinafactory。Inallsuchdistinctivelyroutineworkthereisaheavymentalandevenphysicalcost。Butthereisthisdistinctionbetweenthecaseoftheofficialandoftheprofessionalman。Theformerisnotsubjecttotheconstantdriveofthecompetitivesystemandisusuallyrelievedfromthesenseofinsecurityandanxietywhichwearsuponthemindofmostprofessionalmen。 §；8。Thepsychologyoftheentrepreneurorbusinessmanisoneofgreatinterestandcomplexity。Ifwetaketheordinaryactivitiesofthemanagerofawell-establishedbusinessinastapletrade，theydonotseemtoinvolvemuchinthewayofhighintellectualskill，imagination，orexploit——butmerelyalimitedamountofspecialtradeknowledge，ordinaryintelligence，andcommonsense。Hehastoperformanumberoflittleactsofcalculationanddecision。Whatwecallhischaracter，viz。，honesty，reliability，senseofresponsibility，reallycountsformorethanintellect: thereislittledemandforconstructiveorcreativeimagination，orforhighenterprise。Theconductofsuchabusiness，evenonthepartofitsmanager，thoughnotdestituteofinterestingincident，involvesagooddealofdullroutineandevendrudgerywhichcarriesadistinct\'cost\' inmentalwearandtear。 Thesubordinateofficialsinsuchbusinessare，ofcourse，subjectedtoacloserroutine，thoughnevertoamerelymechanicalrepetition，andtheirworkinglifeislessaffectedbyhopesandfearsrelatingtotheprofitsorlossonthehalf-year\'sworking。 Butalargeproportionofbusinessmenworkunderverydifferentconditionsfromthese。 Mostindustriesto-dayaresubjectedtorapidchangesinregardtoinstrumentsandmethodsofwork，marketsformaterialsandforfinishedproducts，wagesandconditionsofemployment。Akeeneyefornovelties，arapidjudgment，long-sightedcalculation，commandingcharacter，courageinundertakingrisks——theseareleadingnotesinthemodernbusinesslife。 Thebusinessmanwhoconstructs，enlarges，andconductsamoderncompetitivebusiness，performsagoodmanyfunctionswhichcallforvariousmentalandmoralqualities。Hemustplanthestructureofhisbusiness-determineitssize，thesizesandsortsofpremisesandplanthewillrequire，theplacewhichhecanbestoccupy；hemustgetreliablemanagersandassistants，andagoodsupplyofskilledlabourofvariouskinds。Hemustwatchmarketsandbeamasteroftheartsofbuyingandselling:hemusthavetactinmanagingemployeesandaquickeyeforimprovementsinmethodsofproductionandofmarketing:hemustbeapracticalfinancier，andmustfollowthecourseofcurrenthistorysofarasitaffectstradeprospects。 Ifwetakethemostgeneralisedtypeofmodernbusinessman，thefinancierwhodirectstheflowofcapitalintoitsvariouschannels，orthecapitalistwholivesbymanaginghisinvestments，wefindthebusinessabilityinitsmostrefinedform。Forthesemenarethegeneraldirectorsofeconomicenergy，operatingthroughjointstockenterprise。 Thehumancostsofthisworkofspeculationanddirectionaredifficulttoassess。Suchtermsaslabourandindustryarealienfromtheatmosphereofthesehigheconomicfunctions。Atthesametimethestrainofexcitement，and，atcertainseasons，ofprolongedintellectualeffortandattention，thesenseofresponsibilityforcriticaldecisions，involveaheavynervouswearandtear。Probablytheheaviesthumancost，however，isacertainmoralcallousnessandrecklessnessinvolvedinthefinancialstruggle。 Forthepapersymbolsofindustrialpower，whichfinanciershandle，aresoabstractinnatureandsoremotefromthehumanfateswhichtheydirect，thatthechainofcausationlinkingstocksandshareswithhumanworkandhumanlifeisseldomrealised。HowshouldthetemporaryholderofablockofsharesinPeruvianrubberconcernhimselfwiththeconditionsofforcedlabourintheAmazonforests，orthegroupformedtofloataforeigngovernmentloanconsiderthehumanmeaningofthenavalpolicyitisintendedtofinance？ Exceptinsofarastheyaffectthevaluesoftheirholdingsandthepriceatwhichtheycanmarkettheshares，thehumansignificanceofthebusinessorpoliticalenterpriseswhichareconcreteentitiesbehindfinance，hasnomeaningforthem。Thesemenandtheireconomicactivitiesarefurtherremovedfromhumancostsandutilitiesthananyothersortofbusinessmen。Inviewoftheimmensehumanconsequenceswhichfollowfromtheirconductthisaloofnessisademoralisingcondition。 Sooccultandsosuspectaremanyoftheoperationsoffinanciersassomewhattoobscuretheimportanceoftheactualeconomicservicestheyrendertoourindustrialsystem。Generalfinanceisthegovernoroftheeconomicengine:itdistributeseconomicpoweramongthevariousindustries，allocatingthecapitalofthesavingclassestoroad-making，irrigation，mining，theequipmentofnewcities，theestablishmentofstaplemanufactures，andthesupplyoffinancialresourcesforvariouspurposesofgovernment。 Thefinestbusinessinstincts，themostrapid，accurate，andcomplexpowersofinferenceandprophecy，thebestbalanceofaudacityandcaution，thelargestandbest-informedimagination，areneededforthisworkofgeneralfinance。Itisintenselyinteresting，andexertsafascinationwhichistraceabletoacombinationofappeals。Thechieffieldforhigheconomicadventure，itevokesmostfullythecombativequalitiesofforceandcunning； itisfullofhazardandfluctuation，withlarge，rapidgainsandlosses: itneitherrequiresnorpermitsclosepersonalcontactwiththetroublesomeorsordiddetailsofindustrialorcommerciallife。 Suchistheworkofthefinancierandtheskilledinvestor，whofoundcapitalisticenterprisesanddealintheirstocksandsharesoverthewholeareaoftheindustrialworld。Itisthemostintellectualand，inonesense，themost\'moral\'ofbusinessactivities，involvingatoncethefinestartsofcalculationandthefullestfaithinhumannature。 Forfinanceismostcloselylinkedwithcredit，andcreditisonlythebusinessnameforfaith。Whenpeopletalkoffinanceasifitwereriddledwithdishonesty，factsgivethemthelie。Thenormalhonestyoffinanceisprovedbythefactthatlargerandlargernumbersofmenandwomenineverycountryofthecivilisedworldarecomingtoentrusttheirsavingsmoreandmoretomenwhoarepersonalstrangers，forinvestmentindistantcountriesandinbusinessestheexactnatureofwhichisunknowntothem，andoverwhichtheycannothopetoexerciseanappreciablecontrol。 TheworkingofthemachineryofmoderninvestmentbywhichmillionsofmeninEngland，France，andGermanyhavesenttheirsavingstomakerailwaysinS。America，ortoopenupminesinS。Africa，ortobuilddamsinEgypt，isthelargesttangibleresultofmoderneducationthatcanbeadduced。 Itimpliestheintellectualandmoralcooperationoflargernumbersofdistinctpersonalitiesacrosswiderlocalandnationalbarriersthanbaseveroccurredbeforeinthehistoryoftheworld。 §；9。Areasonablefaithinthefutureandawillingnesstorunsomeriskarecomplementarymotivesinthisgrowthoffinancialinvestment。 Theyare，however，bynomeansconfinedtooperationsoffinance。Allindustryinvolvesfaithandrisk-taking。Everyproducerwhoactsasafreeagentconceivessomegoodobjectwhichbethinksattainablebyhiswork。Hemaybemistaken，eitherinconceivingwrongly，orinfailingtocarryouthisplan。Hisfailuremaybeduetowantofskillorknowledge，ortoadversecircumstances。Inprimitivesocieties，whereamanproducesmostlyforhisownuse，theriskisless。Forhemaybesupposedtoknowwhathewants，howmuch，andwhenhewantsit。Butwhenhemakesforothers，i。e。，foramarket，therisksaregreater。Forhewillnotknowsomuchaboutthewantsofotherpersonsasabouthisown。Itmightseemasifsmalllocalmarkets，inwhichtheproducerdealtexclusivelywithneighbours，wouldcarrytheleastrisk，andthattheriskwouldexpandwitheachexpansionofthemarketarea。Butthisisnotcommonlythecase。Asarule，thereislessriskfortheproducerservingalargemarket，theindividualmembersofwhichhedoesnotknow，thanasmallmarketofhisneighbours。Forthefluctuationsofaggregatedemandwillbesmallerinthelargermarket，andthoughhewillknowlessabouttheindividualcontributionstoitssupplyanditsdemand，hisriskoffailingtoeffectasale，whenhedesirestodoso，willusuallybeless。Thisatanyrateappliestomoststandardtrades。