stabilised point of view。 It is in the ways and means of industry
and in the material sciences that the new order of knowledge and
belief first comes into evidence； because it is in this domain of
workday facts that men's experience began about that time to take
a decisive turn at variance with the received canons。 A
mechanistic conception of things began to displace those
essentially romantic notions of untrammeled initiative and
rationality that governed the intellectual life of the era of
enlightenment which was then drawing to a close。
It is logically due to follow that the same general
principles of knowledge and validity will presently undergo a
revision of the same character where they have to do with those
imponderable facts of human conduct and those conventions of law
and custom that govern the duties and obligations of men in
society。 Here and now as elsewhere and in other times the
stubborn teaching that comes of men's experience with the
tangible facts of industry should confidently be counted on to
make the outcome； so as to bring on a corresponding revision of
what is right and good in that world of make…believe that always
underlies any established system of law and custom。 The material
exigencies of the state of industry are unavoidable； and in great
part unbending； and the economic conditions which follow
immediately from these exigencies imposed by the ways and means
of industry are only less uncompromising than the mechanical
facts of industry itself。 And the men who live under the rule of
these economic exigencies are constrained to make their peace
with them； to enter into such working arrangements with one
another as these unbending conditions of the state of the
industrial arts will tolerate； and to cast their system of
imponderables on lines which can be understood by the same men
who understand the industrial arts and the system of material
science which underlies the industrial arts。 So that； in due
course； the accredited schedule of legal and moral rights；
perquisites and obligations will also presently be brought into
passable consistency with the ways and means whereby the
community gets its living。
But it is also logically to be expected that any revision of
the established rights； obligations； perquisites and vested
interests will trail along behind the change which has taken
effect in the material circumstances of the community and in the
community's knowledge and belief with regard to these material
circumstances； since any such revision of ancient rights and
perquisites will necessarily be consequent upon and conditioned
by that change； and since the axioms of law and custom that
underlie any established schedule of rights and perquisites are
always of the nature of make…believe； and the make…believe is
necessarily built up out of conceptions derived from the
accustomed range of knowledge and belief。
Out…worn axioms of this make…believe order become
superstitions when the scope and method of workday knowledge has
outgrown that particular range of preconceptions out of which
these make…believe axioms are constructed； which comes to saying
that the underlying principles of the system of law and morals
are therewith caught in a process of obsolescence；
〃depreciation by supersession and disuse。〃 By a figure of speech
it might be said that the community's intangible assets embodied
in this particular range of imponderables have shrunk by that
much； through the decay of these imponderables that are no longer
seasonable； and through their displacement by other figments of
the human brain； a consensus of brains trained into closer
consonance with the latter…day material conditions of life。
Something of this kind； something in the way of depreciation by
displacement； appears now to be overtaking that system of
imponderables that has been handed down into current law and
custom out of that range of ideas and ideals that had the vogue
before the coming of the machine industry and the material
sciences。
Since the underlying principles of the established order are
of this make…believe character； that is to say； since they are
built up out of the range of conceptions that have habitually
been doing duty as the substance of knowledge and belief in the
past； it follows in the nature of the case that any
reconstruction of institutions will be made only tardily；
reluctantly； and sparingly； inasmuch as settled habits of thought
are given up tardily； reluctantly and sparingly。 And this will
particularly be true when the reconstruction of unseasonable
institutions runs counter to a settled and honorable code of
ancient principles and a stubborn array of vested interests； as
in this instance。 Such is the promise of the present situation；
and such is also the record of the shift that was once before
made from medieval to modern times。 It should be a case of break
or bend。
Chapter 3
The State of the Industrial Arts
The modern point of view； with its constituent principles of
equal opportunity； self…help； and free bargaining； was given its
definitive formulation in the eighteenth century； as a balanced
system of Natural Rights； and it has stood over intact since that
time； and has served as the unquestioned and immutable ground of
public morals and expediency； on which the advocates of
enlightened and liberal policies have always been content to rest
in their case。 The truths which it holds to be self…evident and
indefeasible are conceived to be intrinsically bound up in an
over…ruling Order of Nature； in which thoughtful men habitually
believed at that time and in which less thoughtful men have
continued to believe since then。 This eighteenth…century order of
nature； in the magic name of which Adam Smith was in the habit of
speaking； was conceived on lines of personal initiative and
activity。 It is an order of things in which men were conceived to
be effectually equal in all those respects that are of any
decided consequence； in intelligence； working capacity；
initiative； opportunity； and personal worth； in which the
creative factor engaged in industry was the workman； with his
personal skill； dexterity and judgment； in which； it was
believed； the employer （〃master〃） served his own ends and sought
his own gain by consistently serving the needs of creative labor；
and thereby serving the common good； in which the traders
（〃middle…men〃） made an honest living by supplying goods to
consumers at a price determined by labor cost； and so serving the
common good。
This characterisation of the 〃obvious and simple system〃 that
lies at the root of the liberal ideals may seem too much of a
dream to any person who shuns 〃the scientific use of the
imagination〃； its imponderables may seem to lack that axiomatic
self…sufficiency which one would like to find in the spiritual
foundations of a working system of law and custom。 Indeed； the
best of its imponderables are in a fair way now to drop back into
the discard of uncertified make…believe。 But in point of
historical fact it appears to have stood the test of time and
use； so far as appears formally on the face of law and custom。
For a hundred years and more it has continued to stand as a
familiar article of faith and aspiration among the advocates of a
Liberal policy in civil and economic affairs； and Adam Smith's
followers the economists and publicists of the Liberal
movement have spoken for it as being the normal system of
economic life； the 〃natural state of man；〃 from which the course
of events has been conceived to depart only under pressure of
〃disturbing causes；〃 and to which the course of events must be
pruned back at all hazards in the event of any threatened advance
or departure beyond the 〃natural〃 bounds set by this working
ideal。
However； the subsequent course of events has shown no
indisposition to depart from this normal system of economic life；
this 〃natural state of man；〃 on the effectual reality of which
the modern point of view rests its inviolate principles of law
and morals and economic expediency。 A new order of things has
been taking effect in the state of the industrial arts and in the
material sciences that lie nearest to that tangible body of
experience out of which the state of the industrial arts is
framed。 And the new order of industrial ways and means has been
progressively going out of touch with the essential requirements
of this established scheme of individual self…help and personal
initiative； on the realisation and maintenance of which the best
endeavors of the Liberals have habitually been spent。
Under the new order the first requisite of ordinary
productive industry is no longer the workman and his manual
skill； but rather the mechanical equipment and the standardised
processes in which the mechanical equipment is engaged。 And this
latter…day industrial equipment and process embodies not the
manual skill； dexterity and judgment of an individual workman；
but rather the accumulated technological wisdom of the community。
Under the new order of things the mechanical equipment the
〃industrial plant〃 takes the initiative； sets the pace； and
turns the workman to account in the carrying…on of those
standardised processes of production that embody this mechanistic
state of the industrial arts； very much as the individual
craftsman in his time held the initiative in industry； set the
pace； and made use of his tools according to his own discretion
in the exercise of his personal skill； dexterity and judgment；
under that now obsolescent industrial order which underlies the
eighteenth…century modern point of view； and which still colors
the aspirations of Liberal statesmen and economists； as well as
the standard economic theories。
The workman and indeed it is still the skilled workman
is always indispensable to the due working of this mechanistic
industrial process； of course； very much as the craftsman's
tools； in his time； were indispensable to the work which he had
in hand。 But the unit of i