The Organization of Industry

intelligence, labor, agencies, production, elementary, motion, productive, favorable, land and education

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It is not sufficient for wealth production that motion be imparted to particles of matter, even if that motion be well adapted to accomplish its immediate end. What bodies shall be moved ? What degree and what kind of mo tion shall be applied ? What combinations of motion are necessary to produce the desired commodity ? These questions must be care fully decided before the point is reached when labor can be applied in production. Discovery of the essential relations between the various productive agencies, invention of new processes, and guidance of the forces utilized are the three principal of intelligence in pro duction. A modification of the economic en vironment suddenly leaves too much capital in one branch of industry, and leaves unused opportunity for profitable investment in another. It is the function of intelligence to discover these facts and to cause a transfer of capital and productive power to the new channels. Intelligence finds new forms of potential en ergy in nature, discovers methods by which waste may be reduced, discovers new sources of raw materials and new markets for prod ucts. Industries which were in favorable po sition in every respect for successful compe tition, have at times failed entirely because of their inability to dispose economically and promptly of the commodities produced. This fact would be considered only in the study of the distribution of wealth, except for the loss entailed on society by this waste of productive power. An added degree of intelligence, ap plied at the right place, would complete the group of agencies operating in these industries and render the entire group effective.

The activity of intelligence always takes the form of rendering a decision, as that of labor takes the form of producing motion. But just as the efficiency of labor depends on many circumstances affecting the bodily condition of the laborer, so the soundness of the judg ment rendered depends on the physical con dition of the person who renders it. The part which intelligence plays in production assumes greater importance as the ideals of society be come higher and more complex ; as the stabil ity of credit, the appreciation of future welfare, the influence of moral and religious motives, become more firmly established. These con ditions, favorable to a higher grade of intelli gence, are as capable of cultivation as are the conditions favorable to efficient labor. It is possible for society to produce men physically capable of energetic and efficient labor ; so, also, it is possible to produce men capable of organizing and directing their own industry. Those who place themselves in opposition to liberal public provision foi general higher edu u cation, and for such elementary and secondary instruction as shall lead up to it by an easily trod path, are favoring a monopoly of the most important productive agency in the hands of the few whose private funds can supply the necessary intellectual training. There 4s no necessity for such a monopoly. The capitalists and the class endowed with superior intelligence have been identified in economic theories be cause, as a matter of fact, the State has usually provided in so niggardly a manner for general education of even an elementary character that none others than the children of wealthy capi talists could be placed in a favorable position for the development of their intellectual powers.

Even to this day in England, where the older political economy arose, although there are excellent elementary schools, and though a university education is comparatively inexpen sive, there are no regular means provided to prepare even the brightest student of the ele mentary school for university study.' 1 An important educational problem in England is the re organization of secondary instruction in such a way as to bridge over this period. A Royal Commission issued in 1895 a com We need a more aggressive State policy, not merely in elementary education, but in uni versity teaching as well. The systematic extension of university teaching to every com munity, by means of public funds, is the only completely justifiable policy of higher education for the State to adopt. This would not secure intellectual equality for its citizens, but it would practically insure that all the widely varying abilities of the communities should be brought to light, that fewer of the intellectual powers of society should be wasted, that intelligence in production should be contributed by hun dreds, where it is now contributed by scores. Intelligence is developed under a system of in equality of opportunity by the unsatisfactory method of placing monopoly gains in the hands of a small class, thus bringing opportunities of culture to its members. It would be devel oped more naturally and completely under a democratic system, which, by taxation of mo nopoly gains, by reduction of waste, and, if prehensive report on the subject. In America the better class of High Schools connect the elementary school directly with the State Universities.

necessary, by a voluntary sacrifice of present comfort on the part of all citizens, would pro vide means for placing adequate educational facilities within the reach of every citizen.

We have now completed our brief survey of the individual productive agencies ; we have seen that, strictly speaking, the only agencies are the physical forces which produce motion, and the motives which influence man's will, leading him to cause certain motions to be made rather than others ; yet under the license of figurative language we may classify those agencies as land, capital, labor, and intelli gence : land, since there is no getting access to natural forces except through land owner ship or rental ; capita/, since the ownership of future goods is essential to the present producer ; labor, since human labor supplies whatever physical force it is impossible or impracticable to secure from land and the agencies controlled by its owners ; intelligence, the most convenient collective term for the human faculties, active in production and de termining its amount and character.

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