the vested interests and the common man-第9章

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knowledge；　which　the　community　has　the　use　of。　This　sets　the　
limit；　determines　the　〃maximum〃　production　of　which　the　community　
is　capable。　The　actual　production　in　such　a　community　will　then　
be　determined　by　the　extent　to　which　the　available　technological　
efficiency　is　turned　to　account；　which　is　regulated　in　part　by　
the　intelligence；　or　〃education；〃　of　the　working　population；　and　
in　greater　part　by　market　conditions　which　decide　how　large　a　
product　it　will　be　profitable　for　the　business　men　to　turn　out。　
The　net　product　is　the　amount　by　which　this　actual　production　
exceeds　its　own　cost；　as　counted　in　terms　of　subsistence；　and　
including　the　cost　of　the　necessary　mechanical　equipment；　this　
net　product　will　then　approximately　coincide　with　the　annual　
keep；　the　cost　of　maintenance　and　replacement；　of　the　investors　
or　owners　of　capitalised　property　who　are　not　engaged　in　
productive　industry；　and　who　are　on　this　account　sometimes　spoken　
of　as　the　〃kept　classes；〃　Indeed；　it　would　seem　that　the　number　
and　average　cost　per　capita　of　the　kept　classes；　communibus　
annis；　affords　something　of　a　rough　measure　of　the　net　product　
habitually　derived　from　the　community's　annual　production。　
　　　　The　state　of　the　industrial　arts；　therefore；　is　the　
indispensable　conditioning　circumstance　which　determines　the　
productive　capacity　of　any　given　community；　and　this　is　true　in　a　
peculiar　degree　under　this　new　order　of　industry；　in　which　the　
industrial　arts　have　reached　an　unexampled　development。　The　same　
decisive　factor　may　also　be　described　as　〃the　community's　joint　
stock　of　technological　knowledge。〃　This　common　stock　of　
technological　knowledge　decides　what　will　be　the　ordinary　ways　
and　means　of　industry；　and　so　it　decides　what　will　be　the　
character　and　volume　of　the　output　of　product　which　a　given　man　
power　is　capable　of　turning　out。　Evidently　no　man　power　and　no　
working　population　can　turn　out　any　annual　product　without　the　
use　of　something　in　the　way　of　technological　knowledge；　that　is　
to　say　some　state　of　the　industrial　arts。　The　working　community　
is　a　productive　factor　only　by　virtue　of；　and　only　up　to　the　
limit　set　by；　the　state　of　the　industrial　arts　which　it　has　the　
use　of。　The　contrast　of　industrial　Japan　or　of　industrial　Germany　
before　the　middle　of　the　nineteenth　century　and　after　the　close　
of　the　century　will　serve　for　illustration；　that　is　to　say　before　
and　after　those　peoples　had　come　in　for　the　use　of　the　technology　
of　the　machine　era。　The　disposable　excess　of　the　yearly　product　
over　cost　is　a　matter　of　the　efficiency　of　the　available　state　of　
technological　knowledge；　and　of　the　measure　in　which　the　working　
population　is　put　in　a　position　to　make　use　of　it。　These；　of　
course；　are　obvious　facts；　which　it　should　scarcely　be　necessary　
to　recite；　except　that　they　are　habitually　overlooked；　perhaps　
because　they　are　obvious。　
　　　　The　Industrial　Revolution　of　the　eighteenth　century　was　a　
revolution　in　the　state　of　the　industrial　arts；　of　course；　it　was　
a　mutation　of　character　in　the　common　stock　of　technological　
knowledge　held　and　used　by　the　industrial　population　of　the　
civilised　countries　from　that　time　forward。　The　shift　from　the　
older　to　the　new　order　of　industry　was　of　such　a　nature　as　to　
call　for　the　use　of　an　extensive　equipment　of　mechanical　
apparatus；　progressively　more　and　more　extensive　as　the　change　to　
the　machine　technology　went　on；　and　at　the　same　time　the　
disposable　margin　of　product　above　cost　also　progressively　went　
on　increasing　with　each　further　increase　of　the　community's　joint　
stock　of　technological　knowledge。　
　　　　This　body　of　technological　knowledge；　the　state　of　the　
industrial　arts；　of　course　has　always　continued　to　be　held　as　a　
joint　stock。　Indeed　this　joint　stock　of　technology　is　the　
substance　of　the　community's　civilisation　on　the　industrial　side；　
and　therefore　it　constitutes　the　substantial　core　of　that　
civilisation。　Like　any　other　phase　or　element　of　the　cultural　
heritage；　it　is　a　joint　possession　of　the　community；　so　far　as　
concerns　its　custody；　exercise；　increase　and　transmission；　but　it　
has　turned　out；　under　the　peculiar　circumstances　that　condition　
the　use　of　this　technology　among　these　civilised　peoples；　that　
its　ownership　or　usufruct　has　come　to　be　effectually　vested　in　a　
relatively　small　number　of　persons。　Unforeseen　and　undesigned；　
the　mechanical　circumstances　of　the　new　order　in　industry　have　
reversed　the　practical　effects　of　the　common　law　in　respect　of　
self…help；　equal　opportunity　and　free　bargaining。　The　mechanics　
of　the　case　has　worked　out　this　result　by　cutting　away　the　ground　
on　which　those　principles　were　based　at　the　time　of　their　
acceptance　and　installation。　
　　　　The　machine　technology　requires　for　its　working　a　large　and　
specialised　mechanical　apparatus；　an　ever　increasingly　large　and　
increasingly　elaborate　material　equipment。　So　also　it　requires　a　
large　and　diversified　supply　of　material　resources；　both　in　raw　
materials　and　in　the　way　of　motive　power。　It　is　only　on　condition　
that　these　requirements　are　met　in　some　passable　fashion　that　
this　industrial　system　will　work　at　all；　and　it　is　only　as　these　
requirements　are　freely　met　that　the　machine　industry　will　work　
at　a　high　efficiency。　At　the　same　time　the　settled　principles　of　
law　and　usage　and　public　policy　handed　down　from　the　eighteenth　
century　have　in　effect　decided；　and　continue　to　decide；　that　all　
material　wealth　is；　rightly；　to　be　held　in　private　ownership；　and　
is　to　be　made　use　of　only　subject　to　the　unhampered　discretion　of　
the　legally　rightful　owner。　Meantime　the　highly　productive　state　
of　the　industrial　arts　embodied　in　the　technological　knowledge　of　
the　new　order　can　be　turned　to　account　only　by　use　of　this　
material　equipment　and　these　natural　resources　which　continue　to　
be　held　in　private　ownership。　From　which　it　follows　that　these　
material　means　of　industry；　and　the　state　of　the　industrial　arts　
which　these　material　means　are　to　serve；　can　be　turned　to　
productive　use　only　so　far　and　on　such　conditions　as　the　rightful　
owners　of　the　material　equipment　and　resources　may　choose　to　
impose；　which　enables　the　owners　of　this　indispensable　material　
wealth；　in　effect；　to　take　over　the　use　of　these　industrial　arts　
for　their　own　sole　profit。　So　that　the　usufruct　of　the　
community's　technological　knowledge　has　come　to　vest　in　the　
owners　of　such　material　wealth　as　is　held　in　sufficiently　large　
blocks　for　the　purpose。　
　　　　Therefore；　by　award　of　the　settled　principles　of　equity　and　
self…help　embodied　in　the　modern　point　of　view；　as　stabilised　in　
the　eighteenth　century；　the　owners　of　the　community's　material　
resources　　that　is　to　say　the　investors　in　industrial　business　
　have　in　effect　become　〃seized　and　possessed　of〃　the　
community's　joint　stock　of　technological　knowledge　and　
efficiency。　Not　that　this　accumulated　knowledge　of　industrial　
forces　and　processes　has　passed　into　the　intellectual　keeping　of　
the　investors　and　been　assimilated　into　their　mentality；　even　to　
the　extent　of　a　reasonably　scanty　modicum。　It　remains　true；　of　
course；　that　the　investors；　owners；　kept　classes；　or　whatever　
designation　is　preferred；　are　quite　exceptionally　ignorant　of　all　
that　mechanics　of　industry　whose　usufruct　is　vested　in　them；　they　
are；　in　effect；　fully　occupied　with　other　things；　and　their　
knowledge　of　industry　ordinarily　does　not；　and　need　not；　extend　
to　any　rudiments　of　technology　or　industrial　process。　It　is　not　
as　intelligent　persons；　but　only　as　owners　of　material　ways　and　
means；　as　vested　interests；　that　they　come　into　the　case。　The　
exceptions　to　this　rule　are　only　sufficiently　numerous　to　call　
attention　to　themselves　as　exceptions。　
　　　　As　an　intellectual　achievement　and　as　a　working　force　the　
state　of　the　industrial　arts　continues；　of　course；　to　be　held　
jointly　in　and　by　the　community　at　large；　but　equitable　title　to　
its　usufruct　has；　in　effect；　passed　to　the　owners　of　the　
indispensable　material　means　of　industry。　Though　not　hitherto　by　
formal　specification　and　legal　provision；　their　assets　include；　
in　effect；　the　state　of　the　industrial　arts　as　well　as　the　
mechanical　appliances　and　the　materials　without　which　these　
industrial　arts　are　of　no　effect。　It　is　true；　a　little　something；　
and　indeed　more　than　a　little；　has　been　done　toward　the　due　legal　
recognition　of　the　investor's　usufruct　of　the　community's　
technological　efficiency；　in　the　recognition　of　vested　interests　
and　intangible　assets　as　articles　of　private　property　defensible　
at　law。　But　on　the　whole；　and　until　a　relatively　recent　date；　the　
investors'　tenure　of　this　usufruct　has　been　allowed　to　rest　
informally　on　their　control　of　the　community's　material　assets。　
Still；　the　outlook　now　appears　to　be　that　something　further　may　
presently　be　done　toward　a　more　secure　and　unambiguous　tenure　of　
this　usufruct；　by　suitable　legal　decisions　bearing　on　the　
inviolability　of　vested　interests　and　intangible　assets。　The　
outcome　is；　in　effect；　that　these　owners　have　equitably　become　
the　sole　legitimate　beneficiaries　of　the　possible　margin　of　
product　above　cost。　
　　　　These　are　also　simple　facts　and　patent；　and　should　seem　
sufficiently　obvious　without　argument。　They　have　also　been　
explained　at　some　length　elsewhere。　But　this　recital　of　what　
should　already　be　commonplace　information　seems　necessary　here　
for　the　sake　of　a　more　perspicuous　continuity　in　the　present　
argument。　To　many　persons；　perhaps　to　the　greater　proportion　of　
those　unpropertied　persons　that　are　often　spoken　of　collectively　
as　〃the　common　man；〃　the　state　of　things　which　has　just　been　
outlined　may　seem　untoward。　And　further　reflection　on　the　
character　and　prospective　consequences　of　this　arrangement　is　
likely　to　add　something　more　to　the　common　man's　apprehension　of　
hardship　and　insecurity　to　come。　Therefore　it　may　be　well　to　
recall　that　this　state　of　things　has　been　brought　to　pass　not　by　
the　failure　of　those　principles　of　equity　and　self…help　that　lie　
at　the　root　of　it　all；　but　rather　by　the　eminently　unyielding　
stability　and　sufficiency　of　these　principles　under　new　
conditions。　It　is　not　due　to　any　inherent　weakness　or　shiftiness　
in　these　principles　of　law　and　custom；　which　have　faithfully　
remained　the　same　as　ever；　and　which　all　men　admit　were　good　and　
sound　at　the　period　of　their　installation。　But　it　is　beginning　to　
appear　now；　after　the　event；　that　the　inclusion　of　unrestricted　
ownership　among　those　rights　and　perquisites　which　were　allowed　
to　stand　over　when　the　transition　was　made　to　the　modern　point　of　
view　is　likely　to　prove　inexpedient　in　the　further　course　of　
growth　and　change。　
　　　　Unrestricted　ownership　of　property；　with　inheritance；　free　
contract；　and　self…help；　is　believed　to　have　been　highly　
expedient　as　well　as　eminently　equitable　under　the　circumstances　
which　conditioned　civilised　life　at　the　period　when　the　civilised　
world　made　up　its　mind　to　that　effect。　And　the　discrepancy　which　
has　come　in　evidence　in　this　later　time　is　traceable　to　the　fact　
that　other　things　have　not　remained　the　same。　The　odious　outcome　
has　bee