Human engineering; a study of the management of human forces in industry

Front matter

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Preface

The present unrest in the world of labor is due partly to temporary causes. Among them appear an increase in the cost of living which results mainly from inflation of currency; the desire of certain groups of laborers to share in the extortionate prices which their employers have been allowed to charge; the demoralization resulting from the excitement and changes caused by the war ; and the dissemination of radical propaganda. But the present unrest is not due chiefly to circumstances of the moment ; it is due more to deei>-rooted aspirations which mark a stage in the actual evolution of society.

Society is in a continual state of evolution, but its different groups have never progressed equally. Discordance has separated the groups and caused issues to arise which are not clear to us because we interpret them more or less by means of outworn ideas, prepossessions of the past, which confuse our understanding of new principles. Consequently, conflicts between past beliefs and present truths have brought about strained industrial and social situations.

The issues that depend upon the industrial problem have not been determined by the will of any group of men. They have arisen out of the very nature and circumstances of industrial development. They are now clouded by the difficulty of readjustment to after-war conditions, but a careful analysis makes it clear that they viii PREFACE

cannot be settled by mere economic compromise. A stable settlement requires a scientific treatment of human forces and the establishment of a new relationship among the competing parties — labor, capital, and society — ^which will liberate the vital aspirations of a progressive, industrial population. We must recognize the facts as they are and interpret their meaning not merely in the light of past experience, but in the light of the requirements of a future social order where the position, rights, and duties of every one will be more clearly defined and hence more willingly accepted.

The popular conception of the purpose of industry is the realization of profits ; but, as society has progressed, the modem conception has added social service. These two conflicting conceptions have created a chronic state of conflict between personal and social interests, and, consequently, have caused industrial troubles. The old school of management, on the one hand, does not regard laborers as human beings ; the modern school of management, on the other, recognizes laborers as human beings and has sought to get their goodwill. But in spite of the progress which modem management has realized, it has failed to remove the distressing unrest of labor because it has managed industry only for the personal benefit of both employer and employed. It has ignored labor as a social group and has disregarded the social purpose of industry. The obsoleteness and one-sidedness of such a method suggest the need for a new principle — that of stimulating labor as a whole toward production at large for social purposes. The presentation of this principle is the object of Human Engineering.

The theory of what we call human engineering is not intended for any particular country, though its applica-

PREFACE k

tion is best adapted to America because this country is the most advanced in democracy. It is not destructive of existing evils; it is a positive and constructive management of human forces for a natural promotion of greater democracy. Human engineering has been based upon the universal traits rooted in human character, in accordance with leading ideas in business, economics, psychology, sociology, and ethics.

The purpose of this book is not to advocate a particular system of control of production or a transformation of society. It is to discover the principles of evolution in industry and to apply them to progress. It is also to study the governing human forces behind facts, for the knowledge of these forces is essential in order to see facts in their true relation to the whole process of evolution.

The first part comprises a study of the evolution of the ideas governing industrial relations and shows how the change of ideas has been reflected in the development of trade unions, labor parties, socialism, state socialism, and cooperatives — means employed to counterbalance the growing combinations of capital. Since none of these movements has been able to solve the industrial problem, it is important to understand their deficiencies and dangers to society.

The second part interprets the essentials of present issues, presents recent democratic tendencies, and develops a typical organization for class cooperation on the principle of proportional representation.

The third part gives a brief analysis of the different psychological associations of men involved in industry. It applies what modem sociology has discovered concerning the characteristics of the different associations, such

X PREFACE

as the crowd, the public, the sect, and the corporation, a knowledge of which has become essential in handling collectivities, that is, organized groups of men. Further, it discloses the forces that control human behavior in its relation to industry and shows how to manage these forces.

The fourth part attempts to determine the principles of human engineering and practically to apply them to motivation of labor for cooperation with other social groups.

The conclusion states that no fundamental transformation of industry or society is needed to attain a peaceful settlement of industrial problems. A logical development of our institutions can accomplish it.

The method followed is a purely scientific survey of the dififerent tendencies of the spiritual forces involved in industry, in order to discover what these tendencies mean and how they can be coordinated into a living relationship with one another. For these spiritual forces comprehend all mental faculties and powers of man, intellectual, spiritual, moral, and sentimental, which govern all phases of human life.

A survey of the evolution of radical ideas has also been made, not to spread propaganda, but to set forth the actual sequence of social phenomena. If we observe social phenomena, as the chemist observes reactions in his test tube, we see how proper motivation secures the goodwill of labor and how Czarism produces Bolshevism as surely as sulphuric acid with a base produces sulphate.

I have used the conclusions of many specialists in difiFerent sciences, for, from the complexity of the problem, I cannot be a specialist in all. Hence, there are many opportunities for errors of detail. In this first attempt to

PREFACE

XI present human engineering as a science, I have made no effort to build up a special terminology; the science of human forces is too new and is still too imperfect for me to undertake the settlement of its forms. Consequently, I do not insist upon the letter of my statements. I have merely ascertained the main features of development of industry and made of them a sketch which embodies the essentials of a universal relationship of personal, industrial, and social lives.

In support of my contentions I have quoted freely from the most recent special literature, but the substance of this work has been inspired by a quarter-century of industrial life. So my thesis is not a mere logical structure; it is the result of the impress of millions of facts, and is an intuitive response spontaneously evolved from observation of the tragedy of labor. Moreover, I have learned the meaning of realities by experience in active association with the actual lives of several widely differing peoples.

My thanks are due to Dr. Lee Galloway for his encouragement and suggestions, and to Mr. Ernest Scott Quimby, whose help in revising my manuscript and correcting my English has been invaluable.

Eugene Wera

Preface

Contents

PAGE

Vll

Part I Psychological Evolution Of Industry

CHAPTER

I. Cooperation 3

1. Definition 3

2. The Scope of Cooperation 5

3. The Need for Cooperation in Production ... 9

II. Industrial Evolution 11

4. Evolution of Industry 11

5. Evolution of Capital 14

6. Evolution of the Status of Labor .... .18

Isolation of the Worker ... .... 18

Security of the [Worker . . .... 19

Safety . 19

Minimum Wages and Unemployment ... 22

III. Evolution of Attitudes of Labor and Capital ... 25

7. Original Attitudes of Master and Servants ... 25

8. Reaction of Labor 28

9. Paternalism 31

10. Autocratic Leadership 33

IV. Evolution of Management 38

11. Traditional Management 38

12. Systematized Management 39

13. Scientific Management 40

14. Foremanship 43

15. Employment Management 44

A New Profession 44

Selection 48

V. Competition vs. Monopoly 50

16. Competition So

17. Combinations S2

xiii xiv CONTENTS

CHAPTEE PAGE

i8. Monopoly 54

19. Present Tendencies S^

VI. Trade Unions S8

20. Origin of Unionism 5^

21. The Struggle of Unions 60

22. American Trade Unionism 62

Political Attitude 62

Policies 63

New Status 65

VII. SociALisu 66

23. Origin of Socialism 66

24. Political Socialism 67

Evolution of Dogmatism into Opportunism . . dy

Platform of Modern Socialism 68

25- Revolutionary Syndicalism 71

Origin 71

Characteristics of Syndicalism 72

American Syndicalism 76

Bolshevism 77

VIII. State Socialism 79

26. Origin of State Socialism 79

27. Development of State Socialism 80

28. Deficiency of State Socialism 81

29. Conclusion 83

IX. The Cooperative Movement 8s

30. Origin of the Cooperative Movement .... 85

31. Characteristics of the Cooperative Movement . . 86

32. Qasses of Cooperatives 86

33. Influence of Cooperatives 88

34- Causes of Success 90

Part II The Outlook

X. The Industrial Problem P5

35. Qaims of Labor q5

Responsibility of Capital .* 95

Economic Partnership \ gg

Partnership in JManagement [ 06

36. Claimants to the Proceeds of Industry .... 97

Capital 97

Labor oq

The Eight Parties 100

CONTENTS

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TAGI

37. Object of Gaim loi

38. The Title of the Entrepreneur to Profits . . . . loi

39. The Title of Laborer to Profits 103

40. Profit Sharing 104

41. Sharing in Efficiency 105

42. Functions of Profits 105

XI. The New Status of Labor 107

43. Reconciliation of Conflicting Tendencies .... 107

44. Collective Bargaining 108

45. Fluctuation of Supply and Demand log

46. Sharing Prosperity no

47. Sharing in Social Surplus 112

48. Welfare Institutions as the Share of Labor . . . 113

Industrial Betterment 113

Social Betterment 114

XII. Meaning of Democratic Management 115

49. Principles of Autocracy 115

50. Principles of Democracy 116

The New Meaning of Industry 117

Building Men 119

Equality of Opportunity 120

Cooperation Implies Consent 122

Partnership of Gasses 124

XIII. Labor Representation in England 126

51. Works Committees in England 126

52. Shop Steward Movement 127

53. The Whitley Report 129

54. Object of the Organization 131

55. Constitution of Industrial Government .... 133

56. Functions of Works Committees 134

57. Present Extension 136

58. Objections to the British Plan 136

XIV. Labor Representation in America 139

59. Development of Labor Representation .... 139

60. War Labor Board Plan 140

61. Industrial Democracy 142

62. Works Councils 144

63. Results 144

64. Discussion 146

65. Local vs. National Organization 147

Contrast 147

The Unit Organization 150

Deficiency of the Unit Organization 150

Evolutions of Unions 151 xvi CONTENTS

CHAPTZS PAGE

XV. Functions of Cooperative Management i53

66. A Positive Attitude is Essential IS3

67. Judicial Organization 153

68. Labor's Responsibility i55

69. Employer's Responsibility 156

70. Leadership 157

71. Differentiation of Interests IS9

Local Interests 160

Industrial Interests 160

72. Constitution 161

XVI. Committee Organization . 163

73. Proportional Representation 163

Part III Elements Of Human Engineering

XVII. The Collectivity vs. The Individual 177

75. Introduction 177

76. Personality 179

77. Morality 180

78. Beliefs 183

XVIII. The Collective Spirit 186

79. Types of Associations 186

80. The Crowd 187

81. The Public igo

82. The Sect 192

83. The Corporation 194

84. Applying Morality to Industry ig6

XIX. Life as an End in Itself ig8

85. Essential Cause of Unrest 198

86. The Individualistic Life 198

87. The Insignificance of Industrial Life .... 199

88. The Spirit of Cooperation 199

89. The Real Profit 200

90. Life is Progress 200

91. Collective Life 201

92. Forms of Progress 202

Personal Progress 202

Collective Progress 202

XX. Loyalty 204

93. Nature of Loyalty 204

94. Building Loyalty 206

Loyalty to the Concern 206

Loyalty to the Industrial System . . 207

CONTENTS xvii

CHAPTER p^OB

XXI. Ideals 210

95. Definition of Ideals 210

96. Placing Ideals 213

97. Functions of Ideals 213

98. Formation of Ideals 215

XXII. Motives of Conduct 218

99- Is Conduct Controllable? 218

100. Sources of Motives 219

loi. Classification of Desires 222

102. Outside Influences 223

XXIII. Influence of Our Animal Nature on Conduct . 227

103. Biotic Logic 227

104. Pleasure as a Dynamic Factor 228

XXIV. Influence of Sentiment on Conduct 230

105. Characteristics of Sentiment 230

106. Independence of Feeling and Reason .... 232

107. Function of Sentiment 233

108. Field of Sentiment 235

XXV. Influence of Belief on Conduct 239

109. Mystical Nature 239

1 10. Belief vs. Knowledge 241

111. Development of Beliefs 242

112. Field of Mystical Beliefs 244

XXVI. Influence of Reason on Conduct 247

113. Intellectual Nature 247

114. Field of Rational Logic 249

115. Appeal to Reason 250

XXVII. The Balance of Motives 251

116. Individual Decision 251

117. Collective Decision 252

118. Conclusion 253

XXVIII. How TO Stimulate Vital Energies for Action . 255

119. Stimulating Appetites 255

120. Stimulating Vital Energies by Means of Pleasure 257

Fatigue 257

Fear 259

Sensuous Pleasures 260

XXIX. How TO Stimulate Sentiments for Action ... 261

121. The Stimulus of Sentiment 261

122. How Suggestion Stimulates Sentiments .... 262 xviii CONTENTS

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FACE

123. Imitation 264

124. Making Suggestions Effective 266

125. Suggestive Media 268

XXX, How TO Control Opinions and Beliefs for Constructive Action 271

126. The Need for Control of Collective Opinion . . 271

127. Internal Factors of Opinions 272

Character 272

IWants 273

Interests 273

Passions 274

Illusions 274

128. External Factors of Opinions 274

First Impressions 275

Suggestion 275

Prestige 279

Mental Contagion 279

Fashion 280

Custom _ . _ 281

Means of Propagation of Opinion 281

129. The Rectification of Opinions 282

Steadiness of Beliefs 282

Social Necessities 282

Social Opportunities 283

Part IV Applied Human Engineering

XXXI. Principles of Human Engineering 287

130. Purpose of Human Engineering 287

131. Some Principles of Mechanics 288

132. Statistics of Vital Forces 290

133. Spiritual Dynamics 294

The Stimulus 295

Collective Stimulation 297

XXXII. Promoting Labor Representation 298

134. The Promoter 298

135. Steps of Promotion of Labor Representation . . 299

136. Creating the Ideal 300

137. Motivating the Personnel 302

138. Correcting Traditions 302

139. Establishing Community of Interests .... 303

140. Closing the Campaign 304

141. Promoting the Plan 305

CONTENTS xix

CRAPTEK PAGI

142. What to Start 306

143. How Fast to Develop Cooperation in Managrement 307

144. The Function of Committees in Human Engineer-

ing 308

XXXin. Organizing for Unity 310

145. Managerial Unit 310

1416. Connecting Employees 311

147. Assimilating the Manager 311

148. Symbol of Unity 313

XXXIV. Human Engineering in Production 315

149. The Object of Human Engineering in Production 315

150. Building Ideals 315

151. Motivating the Personnel 317

152. Examples of Motivation 317

Graphs 317

The Blackboard 317

The Bulletin 320

153. Traditions 323

Inertia to Variation 323

Correcting Traditions 324

Harmful Traditions to Be Removed .... 326

Two Aspects of Inertia 327

154. Interests 328

XXXV. Industrial Engineering 329

155. Limitation of Competition 329

156. Cooperation of Employers 33°

157. Prospective Development 332

158. Leadership 333

159. Technique of Industrial Engineering . . . . 33S

160. Building Ideals 335

162. Traditions 337

163. Interests 337

XXXVI. Social Engineering 339

165. Definition of Social Engineering 339

166. Technique of Social Engineering 34°

Building Loyalty 340

Forming Ideals 342

Social Motivation 343

Correcting Tradition 34S

Harmonizing Conflicting Interests 345

167. Individual Liberty vs. Social Interference ... 347

168. The Organization of Thought 350

XX

CONTENTS

CHAPTEB '^''^

169. Organizing Bodies 352

170. Formation of Public Opinion 353

XXXVII. Conclusion 357

171. An Historical Summary 357

172. The Solutions to the Industrial Problem . . . 358

173. The Laws of Life Must Govern 358

174. Engineering of Human Forces 360

17s. The Committee System and Cooperation . . . 361

Bibliography 363

Index 369

Chapter I Cooperation

I. Definition. — The great and distressing problem of to-day is the lack of cooperation among the personnel of great industrial and commercial enterprises. At the best, this means that men are indifferent to the result of their work. At the worst, it means that they deliberately waste time and material or menace the social order.

One of the purposes of management, therefore, is to get the cooperation of the employees. But what is cooperation? Webster's dictionary defines cooperation:

Joint operation, concurrent effort of labor. The association of a number of persons for their common benefit; collective action in the pursuit of common well-being, especially in some industrial or business process.

The concurrence of effort in collective action for common well-being is the essential of this definition.

In practice, cooperation is manifested by a vivid interest in one's occupation, by a desire to be of service and to make good for one's firm, and by anxiety for its fame and prosperity. It means attention concentrated on one's task, honest endeavor during full working time, thought for constant improvement, elimination of waste, teamwork, self-discipline, willing adaptation, and the spirited exertion which courage and loyalty stimulate. Occasionally, it means some self-denial. In other words, cooperation would be perfectly expressed if a man worked for his employer as he would work for himself in his own business. Such a cooperator is rather exceptional, though it seems that employers expect to meet him in the person of every employee. Such expectation is vain. For example, the increase of output occasioned by piece-work often suggests that dishonesty motivates the slower pace of day work, but it is not so. There is no reason why any individual worker should deliver more than the usual amount of work furnished for the customary day wage of his trade, in spite of his ability to do so. Moreover, leveling wages levels down output.

The supposed right of the master to exact devotion from his employees is a remnant of the feudal status of labor which has not yet been completely effaced from the mind of the old-school employer. Yet its fallacy is evidenced by the universal inertia of people working under average conditions. Normal wage can purchase only the ordinary routine work of the average man of each class. Intelligence, initiative, concentration, spirited exertion, self-denial; that is, cooperation, constitutes an extra thing which is not included in the contract of labor. We do not realize well enough what such an extra thing means and what a superior combination of high physical, mental, and moral qualities is required to produce it. Under normal conditions, the effort which the average man is willing to put forth, is the habitual effort. Everything which requires foresight, new combination of thought, exceptional alertness, continuous attention, any unaccustomed movement or exertion, is difficult. Em-

COOPERATION 5

ployees are willing to cooperate with their employer for a common benefit; that is to say, to work with him but by no means for him. The extra effort is such an altruistic expression of human nature that it cannot be entirely paid for with money. Cooperation demands a common end of pursuit, which cannot be found in specialized tasks.

2. The Scope of Cooperation. — Cooperation is not merely an honest discharge of one's obligations ; its scope is much broader and higher. It implies a common understanding of the ideals to be pursued, a community of purposes, an agreement upon the means to these ends, a willingness to give another right service, and readiness to receive his service in return. In other words, it involves a sincere endeavor to attain greater results, to unite the individual's activity with that of others, not only on the economic but also on the intellectual, moral, and social planes. Nothing of importance is now accomplished without it. Indeed, cooperation is the great social phenomenon of our epoch; it is the light of our civilization.

Cooperation exercises itself among coworkers by advice, information, example, help, considerateness, and the fitting of one's job to that of others. The foreman cooperates with the employee by giving, in an unmistakable manner, the right instruction at the right time, by common sense in keeping principles, by patient teaching, by helpful supervision, and by listening to the suggestions of the employee. In return, the employee gives confidence, discipline, attention, timely report on trouble and waste, and aid in the search for constant improvement and for greater efficiency. Cooperation manifests itself between foremen, squads, or departments by setting a proper sequence of operations, by avoiding retrogression in manufacturing processes, by avoiding duplication of work, by facilitating the handling of material and subsequent operations, and by an appreciation of each other's means and requirements in order to minimize friction. It is needed among executives for realizing community of purpose and unity of action. It is a fundamental condition between the chief executive and his personnel.

Cooperation also extends beyond the plant ; for, indeed, every day we see novel efforts to facilitate handling, transporting, and preserving products and to increase efficiency in their use or consumption.

Consider the work of the sales and advertising men and dealers. They unite in educating the masses and shaping their standard of living, in increasing the welfare of a progressive people, and in developing the absorbing capacity of the market.

Consider the railway, which is almost the partner of every modem business. It cooperates with both stages of production; the concentration of raw materials at the factory and the distribution of finished goods. It increases the area of supply and consumption to such an extent that all centers of production have become interdependent. It has made possible that specialization of industry which makes cooperation necessary among specialized workers and specialized centers.

Consider how much we owe to the fine cooperation, verging on partnership, between banking and business concerns. By this means, credit has multiplied many fold the powers of commerce and industry, although the full development of credit is yet to come. Again, in finance, the cooperation of many small investors makes it possible to raise huge capital for the establishment of large

COOPERATION 7

industries. Thus common people have become copartners in the most formidable enterprises in the world. Furthermore, insurance is a great financial cooperation for the distribution of risk or of loss from disasters of all kinds.

Cooperation is not limited to the activity of people united by the same interest. To the confusion of the old individualist, it extends to competitors who find untold advantages in helping one another, as for example, the association of credit men, which decreases losses and expands business. The progress of technical and business methods is due largely to the diffusion of knowledge by the pioneers of science and industry, who impart the results of their studies, investigations, cUid experience through special publications, lectures, and expositions, or by means of visits to factories and works. Industrial progress is no longer worked out in secret by one man in an inefficient manner. To-day, progress in science and industry is due to the fullest cooperation of experts, not only of this country but of the whole world. They create the powerful currents of thoughts which, although unperceived by the layman, build up our civilization with such a rapid pace that the average business man is scarcely able to keep himself up-to-date, even in his own line.

Such world-wide cooperation also unites in a common purpose all professional men ; such as teachers, engineers, physicians, lawyers, bankers, psychologists, sociologists, and so on. Every body of specialists has its journal and publishes the full results of its researches. It may be said, therefore, that science is the purest fruit of cooperation. The press has become a formidable tool for cooperation on a large scale, and at the same time the instrutnent for the diffusion and exaltation of the spirit of cooperation.

These few instances show that the whole system of production has become a vast work of cooperation, the complexity and gigantic proportions of which no man had ever dreamed. The present system is a result of the survival of the fittest means to serve the actual wants of humanity.

Service is the real test of cooperation. We observe in passing that he who serves best deserves the highest reward in every field of activity. Simple muscular effort is as cheap as is raw material; its work lacks the impress of intelligence. Whether service is rendered directly or is embodied in products, it is the more valuable the more it reflects intelligence; an intelligence which vitalizes things and makes things valuable because they acquire qualities which respond to the demands of life. It is often supposed that manual labor is mere physical exertion. But there is no physical work which would not be improved by the cooperation of intelligent attention. Many mechanics have to supplement a little physical exertion by much mental work. Besides, all workers have to stimulate their wills to overcome their own inertia and adverse external conditions. They have to fit themselves to their jobs and can increase their efficiency considerably by extra effort of will.

In our modem life, under the division and specialization of labor, the individual worker contributes only an infinitesimal part to the production of the commodities he consumes. Through our social system, he exchanges his services for the services of others. Consequently, social progress has become the ultimate end of cooperation. Cooperation, therefore, is not a mere accidental

COOPERATION 9

application of good will; it is the manifestation of the universal spirit of our civilization which fuses endless differences into social solidarity. It is, moreover, the very principle of a democracy in which every citizen has the right and the duty to collaborate in building the ideal state of his aspirations.

3. The Need for CoSperation in Production. — ^The leading nations believe that greater cooperation is needed and encourage combinations among manufacturing, financial, and shipping interests, for standardizing production and reducing costs as well as for purchasing raw materials. The object is to eliminate waste and inefficiency and to avoid duplication of effort in order to decrease buying, producing and selling expenses. The present economic conditions make international cooperation for administering the opportunities of the world the highest goal of business, for the destiny of humanity depends upon good will and mutual services among nations. The interdependence of nations has become so compelling as to inspire this declaration by R. H. Rice, acting manager of the General Electric Company :^

If America is to maintain her position as an industrial nation in the years of reconstruction and post-reconstruction to come, she must be able to manufacture and export to foreign countries all those articles of commerce which her genius and inventive ability have produced and will produce under competitive conditions more severe than any which we have as yet known. She must be able to manufacture and market her products at home under similar competitive conditions. The industrial facilities existing in America to-day are so much more extensive than they ever have been

^Electrical World, March, 1919.

that our home market will no longer be sufficient to absorb our products.

Consequently, the higher world-wide cooperation must begin by winning the good will of the htunblest working man.

Chapter II

4. Evolution of Industry.— The history of industrial systems is a record of the growth of union. Each stage of this long development has had its own peculiar organization, characterized by the relation of capital to labor. In primitive life, commodities were supplied by private production for private consumption. There was no capital, no exchange, no division of labor; therefore, cooperation, in the economic sense, was absent. The organization of the family and clan marked the first stage of union and cooperation. But it was only when small groups accumulated a stock of goods that exchange of surplus goods from one group for goods of a different kind from another group initiated commerce. Slowly, people recognized the advantages of greater union and organized socially into larger communities. Trades were differentiated and a system of local exchange developed. The craftsman owned his materials and his tools and thus was independent. Then different centers developed higher perfection in particular lines of production. The products of these centers, therefore, became more desirable for other communities. But without capital, salesmanship, or machinery for distribution, the craftsmen could not benefit much from their skill. Such a new opportunity invited the middleman to enlarge the field of exchange. He incurred the risks, which were consider-

II able in early trade, and finally accumulated wealth. The demand for products grew faster than the growth of hand production. As soon as capital had become available, machines were invented and production was centralized in factories where man's efficiency advanced. The effect of that evolution was cumulative. Decrease of cost increased trade which, in turn, brought wealth. This wealth, then, invested in machinery, multiplied productivity and decreased cost more. During this stage the different communities were still to a great extent self-supporting; therefore, commerce was mainly a private concern. Its object was the exchange of surplus products for the pui-pose of accumulating wealth and gaining power for the entrepreneur; that is, for the man who undertakes the conduct and responsibility of production.

Later on, governments came to realize that greatness of nations lay in development of industry and commerce rather than in annexation of more land. Hence laws were passed to encourage production and transportation, to make the roads safe for commerce, and to regulate the commercial relations. The economic progress which followed has been so great that the productive centers of all nations have become interdependent. This interdeperndence of social groups and districts, as well as that of individuals, has laid upon us the obligation to serve. Indeed, those who have renounced producing their necessities in order to specialize and, by doing so, have augmented their usefulness to society, have, in return, an unquestionable right to demand of society provision for their necessities.