intangible assets；〃 such as habitually to reduce the net average
return on his total active assets appreciably below the ordinary
rate of discount。 His case； in other words； is the reverse of the
typical business concern of the larger sort； which comes in for a
net excess over ordinary rates of discount on its tangible
assets； and which is thereby enabled to write into its accounts a
certain amount of intangible assets； and so come into line as a
vested interest。 The farmer； too； is caught in the net of the new
order； but his occupation does not belong to that new order of
business enterprise in which earning…capacity habitually outruns
the capitalised value of the underlying physical property。
Evidently the cleavage due to be brought on by the new order
in business and industry； between the vested interests and the
common man； has not vet fallen into clear lines； at least not in
America。 The common man does not know himself as such； at least
not yet； and the sections of the population which go to make up
the common lot as contrasted with the vested interests have not
yet learned to make common cause。 The American tradition stands
in the way。 This tradition says that the people of the republic
are made up of ungraded masterless men who enjoy all the rights
and immunities of self…direction； self…help； free bargaining； and
equal opportunity； quite after the fashion that was sketched into
the great constituent documents of the eighteenth century。
Much doubt and some discontent is afoot。 It is becoming
increasingly evident that the facts of everyday life under the
new order do not fall in with the inherited principles of law and
custom； but the farmers； farm laborers； factory hands； mine
workmen； lumber hands； and retail tradesmen have not come to
anything like a realisation of that new order of economic life
which throws them in together on one side of a line of division；
on the other side of which stand the vested interests and the
kept classes。 They have not yet come to realise that all of them
together have nothing to lose except such things as the vested
interests can quite legally and legitimately deprive them of；
with full sanction of law and custom as it runs； so soon and so
far as it shall suit the convenience of the vested interests to
make such a move。 These people of the variegated mass have no
safeguard； in fact； against the control of their conditions of
life exercised by those massive interests that move obscurely in
the background of the market； except such considerations of
expediency as may govern the manoeuvres of those massive ones who
so move obscurely in the background。 That is to say； the
conditions of life for the variegated mass are determined by what
the traffic will bear； according to the calculations of self…help
which guide the vested interests； all the while that the farmers；
workmen； consumers； the common lot； are still animated with the
fancy that they have themselves something to say in these
premises。
It is otherwise with the vested interests； on the whole。 They
take a more perspicuous view of their own case and of the
predicament of the common man； the party of the second part。
Whereas the variegated mass that makes up the common lot have not
hitherto deliberately taken sides together or defined their own
attitude toward the established system of law and order and its
continuance； and so are neither in the right nor in the wrong as
regards this matter； the vested interests and the kept classes；
on the other hand； have reached insight and definition of what
they need； want； and are entitled to。 They have deliberated and
chosen their part in the division； partly by interest and partly
by ingrained habitual bent； no doubt； and they are always in
the right。 They owe their position and the blessings that come of
it free income and social prerogative to the continued
enforcement of these eighteenth…century principles of law and
order under conditions created by the twentieth…century state of
the industrial arts。 Therefore； it is incumbent on them； in point
of expediency； to stand strongly for the established order of
inalienable eighteenth…century rights； and they are at the same
time in the right； in point of law and morals； in so doing； since
what is right in law and morals is always a question of settled
habit； and settled habit is always a legacy out of the past。 To
take their own part； therefore； the vested interests and the kept
classes have nothing more perplexing to do than simply to follow
the leadings of their settled code in all questions of law and
order and thereby to fall neatly in with the leading of their own
pecuniary advantage； and always and on both counts to keep their
poise as safe and sound citizens intelligently abiding by the
good old principles of right and honest living which safeguard
their vested rights。
The common man is not so fortunate。 He cannot effectually
take his own part in this difficult conjuncture of circumstances
without getting on the wrong side of the established run of law
and morals； Unless he is content to go on as the party of the
second part in a traffic that is controlled by the massive
interests on the footing of what they consider that the traffic
will bear； he will find himself in the wrong and may even come in
for the comfortless attention of the courts。 Whereas if he makes
his peace with the established run of law and custom； and so
continues to be rated as a good man and true； he will find that
his livelihood falls into a dubious and increasingly precarious
case。 It is not for nothing that he is a common man。
So caught in a quandary； it is small wonder if the common man
is somewhat irresponsible and unsteady in his aims and conduct；
so far as touches industrial affairs。 A pious regard for the
received code of right and honest living holds him to a
submissive quietism； a make…believe of self…help and fair
dealings； whereas the material and pecuniary circumstances that
condition his livelihood under this new order drive him to fall
back on the underlying rule of Live and Let Live； and to revise
the established code of law and custom to such purpose that this
underlying rule of life shall be brought into bearing in point of
fact as well as in point of legal formality。 And the training to
which the hard matter…of…fact logic of the machine industry and
the mechanical organisation of life now subjects him； constantly
bends him to a matter…of…fact outlook； to a rating of men and
things in terms of tangible performance； and to an ever slighter
respect for the traditional principles that have come down from
the eighteenth century。 The common man is constantly and
increasingly exposed to the risk of becoming an undesirable
citizen in the eyes of the votaries of law and order。 In other
words； vested rights to free income are no longer felt to be
secure in case the common man should take over the direction of
affairs。
Such a vested right to free income； that is to say this
legitimate right of the kept classes to their keep at the cost of
the underlying community； does not fall in with the lines of that
mechanistic outlook and mechanistic logic which is forever
gaining ground as the new order of industry goes forward。 Such
free income； which measures neither the investor's personal
contribution to the production of goods nor his necessary
consumption while engaged in industry； does not fit in with that
mechanistic reckoning that runs in terms of tangible performance；
and that grows ever increasingly habitual and convincing with
every further habituation to the new order of things in the
industrial world。 Vested perquisites have no place in the new
scheme of things； hence the new scheme is a menace。 It is true；
the well stabilised principles of the eighteenth century still
continue to rate the investor as a producer of goods； but it is
equally true that such a rating is palpable nonsense according to
the mechanistic calculus of the new order； brought into bearing
by the mechanical industry and material science。 This may all be
an untoward and distasteful turn of circumstances； but there is
no gain of tranquillity to be got from ignoring it。
So it comes about that； increasingly； throughout broad
classes in these industrial countries there is coming to be
visible a lack of respect and affection for the vested interests；
whether of business or of privilege； and it rises to the pitch of
distrust and plain disallowance among those peoples on whom the
preconceptions of the eighteenth century sit more lightly and
loosely。 It still is all vague and shifty。 So much so that the
guardians of law and order are still persuaded that they 〃have
the situation in hand。〃 But the popular feeling of incongruity
and uselessness in the current run of law and custom under the
rule of these timeworn preconceptions is visibly gaining ground
and gathering consistency； even in so well ordered a republic as
America。 A cleavage of sentiment is beginning to run between the
vested interests and the variegated mass of the common lot。； and
increasingly the common man is growing apathetic； or even
impervious； to appeals grounded on these timeworn preconceptions
of equity and good usage。
The fact of such a cleavage； as well as the existence of any
ground for it； is painstakingly denied by the spokesmen of the
vested interests； and in support of that comfortable delusion
they will cite the exemplary fashion in which certain
monopolistic labor organisations 〃stand pat；〃 It is true； such a
quasi…vested interest of the A。 F。 of L。； which unbidden assumes
to speak for the common man； can doubtless be counted on to
〃stand pat〃 on that system of imponderables in which its vested
perquisites reside。 So also the kept classes； and their stewards
among the keepers of law and custom； are inflexibly content to
let well enough alone。 They can be counted on to see nothing more
to the point than a stupidly subversive rapacity in that
loosening of the bonds of convention that