If to-day the miner or any other workman produces more, he has no

guarantee that the result will be lower prices rather than higher

dividends and larger royalties, any more than, as a workman, he can

determine the quality of the wares which his employer supplies to

customers, or the price at which they are sold. Nor, as long as he is

directly the servant of a profit-making company, and only indirectly

the servant of the community, can any such guarantee be offered him.

It can be offered only in so far as he stands in an immediate and

direct relation to the public for whom industry is carried on, so that,

when all costs have been met, any surplus will pass to it, and not to

private individuals. It will be accepted only in so far as the workers

in each industry are not merely servants executing orders, but {138}

themselves have a collective responsibility for the character of the

service, and can use their organizations not merely to protect

themselves against exploitation, but to make positive contributions to

the administration and development of their industry.

[1] _Coal Industry Commission, Minutes of Evidence_, pp. 9261-9.

{139}

IX

THE CONDITION OF EFFICIENCY

Thus it is not only for the sake of the producers, on whom the old

industrial order weighed most heavily, that a new industrial order is

needed. It is needed for the sake of the consumers, because the

ability on which the old industrial order prided itself most and which

is flaunted most as an argument against change, the ability to serve

them effectively, is itself visibly breaking down. It is breaking down

at what was always its most vulnerable point, the control of the human

beings whom, with characteristic indifference to all but their economic

significance, it distilled for its own purposes into an abstraction

called "Labor." The first symptom of its collapse is what the first

symptom of economic collapses has usually been in the past--the failure

of customary stimuli to evoke their customary response in human effort.

Till that failure is recognized and industry reorganized so that new

stimuli may have free play, the collapse will not correct itself, but,

doubtless with spasmodic revivals and flickerings of energy, will

continue and accelerate. The cause of it is simple. It is that those

whose business it is to direct economic activity are increasingly

incapable of directing the men upon whom economic activity depends.

The fault is not that of individuals, but of a system, of Industrialism

itself. {140} During the greater part of the nineteenth century

industry was driven by two forces, hunger and fear, and the employer

commanded them both. He could grant or withhold employment as he

pleased. If men revolted against his terms he could dismiss them, and

if they were dismissed what confronted them was starvation or the

workhouse. Authority was centralized; its instruments were passive;

the one thing which they dreaded was unemployment. And since they

could neither prevent its occurrence nor do more than a little to

mitigate its horrors when it occurred, they submitted to a discipline

which they could not resist, and industry pursued its course through

their passive acquiescence in a power which could crush them

individually if they attempted to oppose it.

That system might be lauded as efficient or denounced as inhuman. But,

at least, as its admirers were never tired of pointing out, it worked.

And, like the Prussian State, which alike in its virtues and

deficiencies it not a little resembled, as long as it worked it

survived denunciations of its methods, as a strong man will throw off a

disease. But to-day it is ceasing to have even the qualities of its

defects. It is ceasing to be efficient. It no longer secures the

ever-increasing output of wealth which it offered in its golden prime,

and which enabled it to silence criticism by an imposing spectacle of

material success. Though it still works, it works unevenly, amid

constant friction and jolts and stoppages, without the confidence of

the public and without full confidence even in itself, a tyrant who

must intrigue and cajole where formerly he commanded, a gaoler who, if

not yet {141} deprived of whip, dare only administer moderate

chastisement, and who, though he still protests that he alone can keep

the treadmill moving and get the corn ground, is compelled to surrender

so much of his authority as to make it questionable whether he is worth

his keep. For the instruments through which Capitalism exercised

discipline are one by one being taken from it. It cannot pay what

wages it likes or work what hours it likes. In well-organized

industries the power of arbitrary dismissal, the very center of its

authority, is being shaken, because men will no longer tolerate a

system which makes their livelihood dependent on the caprices of an

individual. In all industries alike the time is not far distant when

the dread of starvation can no longer be used to cow dissatisfied

workers into submission, because the public will no longer allow

involuntary unemployment to result in starvation.

And if Capitalism is losing its control of men's bodies, still more has

it lost its command of their minds. The product of a civilization

which regarded "the poor" as instruments, at worst of the luxuries, at

best of the virtues, of the rich, its psychological foundation fifty

years ago was an ignorance in the mass of mankind which led them to

reverence as wisdom the very follies of their masters, and an almost

animal incapacity for responsibility. Education and experience have

destroyed the passivity which was the condition of the perpetuation of

industrial government in the hands of an oligarchy of private

capitalists. The workman of to-day has as little belief in the

intellectual superiority of many of those who direct industry as he has

in the morality of {142} the system. It appears to him to be not only

oppressive, but wasteful, unintelligent and inefficient. In the light

of his own experience in the factory and the mine, he regards the claim

of the capitalist to be the self-appointed guardian of public interests

as a piece of sanctimonious hypocrisy. For he sees every day that

efficiency is sacrificed to shortsighted financial interests; and while

as a man he is outraged by the inhumanity of the industrial order, as a

professional who knows the difference between good work and bad he has

a growing contempt at once for its misplaced parsimony and its

misplaced extravagance, for the whole apparatus of adulteration,

advertisement and quackery which seems inseparable from the pursuit of

profit as the main standard of industrial success.

So Capitalism no longer secures strenuous work by fear, for it is

ceasing to be formidable. And it cannot secure it by respect, for it

has ceased to be respected. And the very victories by which it seeks

to reassert its waning prestige are more disastrous than defeats.

Employers may congratulate themselves that they have maintained intact

their right to freedom of management, or opposed successfully a demand

for public ownership, or broken a movement for higher wages and shorter

hours. But what is success in a trade dispute or in a political

struggle is often a defeat in the workshop: the workmen may have lost,

but it does not follow that their employers, still less that the

public, which is principally composed of workmen, have won. For the

object of industry is to produce goods, and to produce them at the

lowest cost in human effort. {143} But there is no alchemy which will

secure efficient production from the resentment or distrust of men who

feel contempt for the order under which they work. It is a commonplace

that credit is the foundation of industry. But credit is a matter of

psychology, and the workman has his psychology as well as the

capitalist. If confidence is necessary to the investment of capital,

confidence is not less necessary to the effective performance of labor

by men whose sole livelihood depends upon it. If they are not yet

strong enough to impose their will, they are strong enough to resist

when their masters would impose theirs. They may work rather than

strike. But they will work to escape dismissal, not for the greater

glory of a system in which they do not believe; and, if they are

dismissed, those who take their place will do the same.

That this is one cause of a low output has been stated both by

employers and workers in the building industry, and by the

representatives of the miners before the Coal Commission. It was

reiterated with impressive emphasis by Mr. Justice Sankey. Nor is it

seriously contested by employers themselves. What else, indeed, do

their repeated denunciations of "restriction of output" mean except

that they have failed to organize industry so as to secure the

efficient service which it is their special function to provide? Nor

is it appropriate to the situation to indulge in full-blooded

denunciations of the "selfishness" of the working classes. "To draw an

indictment against a whole nation" is a procedure which is as

impossible in industry as it is in politics. Institutions must be

adapted to human nature, not {144} human nature to institutions. If

the effect of the industrial system is such that a large and increasing

number of ordinary men and women find that it offers them no adequate

motive for economic effort, it is mere pedantry to denounce men and

women instead of amending the system.

Thus the time has come when absolutism in industry may still win its

battles, but loses the campaign, and loses it on the very ground of

economic efficiency which was of its own selection. In the period of

transition, while economic activity is distracted by the struggle

between those who have the name and habit of power, but no longer the

full reality of it, and those who are daily winning more of the reality

of power but are not yet its recognized repositories, it is the

consumer who suffers. He has neither the service of docile obedience,

nor the service of intelligent co-operation. For slavery will work--as

long as the slaves will let it; and freedom will work when men have

learned to be free; but what will not work is a combination of the two.

So the public goes short of coal not only because of the technical

deficiencies of the system under which it is raised and distributed,

but because the system itself has lost its driving force--because the

coal owners can no longer persuade the miners into producing more

dividends for them and more royalties for the owners of minerals, while

the public cannot appeal to them to put their whole power into serving

itself, because it has chosen that they should be the servants, not of

itself, but of shareholders.

And, this dilemma is not, as some suppose, temporary, {145} the

aftermath of war, or peculiar to the coal industry, as though the

miners alone were the children of sin which in the last few months they

have been described to be. It is permanent; it has spread far; and, as

sleeping spirits are stirred into life by education and one industry

after another develops a strong corporate consciousness, it will spread

further. Nor will it be resolved by lamentations or menaces or

denunciations of leaders whose only significance is that they say

openly what plain men feel privately. For the matter at bottom is one

of psychology. What has happened is that the motives on which the

industrial system relied for several generations to secure efficiency,

secure it no longer. And it is as impossible to restore them, to

revive by mere exhortation the complex of hopes and fears and ignorance

and patient credulity and passive acquiescence, which together made

men, fifty years ago, plastic instruments in the hands of

industrialism, as to restore innocence to any others of those who have

eaten of the tree of knowledge.

The ideal of some intelligent and respectable business men, the

restoration of the golden sixties, when workmen were docile and

confiding, and trade unions were still half illegal, and foreign

competition meant English competition in foreign countries, and prices

were rising a little and not rising too much, is the one Utopia which

can never be realized. The King may walk naked as long as his

courtiers protest that he is clad; but when a child or a fool has

broken the spell a tailor is more important than all their admiration.

If the public, which suffers from the slackening of economic activity,

{146} desires to end its _malaise_, it will not laud as admirable and

all-sufficient the operation of motives which are plainly ceasing to

move. It will seek to liberate new motives and to enlist them in its

service. It will endeavor to find an alternative to incentives which

were always degrading, to those who used them as much as to those upon

whom they were used, and which now are adequate incentives no longer.

And the alternative to the discipline which Capitalism exercised

through its instruments of unemployment and starvation is the

self-discipline of responsibility and professional pride.

So the demand which aims at stronger organization, fuller

responsibility, larger powers for the sake of the producer as a

condition of economic liberty, the demand for freedom, is not

antithetic to the demand for more effective work and increased output

which is being made in the interests of the consumer. It is

complementary to it, as the insistence by a body of professional men,

whether doctors or university teachers, on the maintenance of their

professional independence and dignity against attempts to cheapen the

service is not hostile to an efficient service, but, in the long run, a

condition of it. The course of wisdom for the consumer would be to

hasten, so far as he can, the transition. For, as at present

conducted, industry is working against the grain. It is compassing sea

and land in its efforts to overcome, by ingenious financial and

technical expedients, obstacles which should never have existed. It is

trying to produce its results by conquering professional feeling

instead of using it. It is carrying not only its inevitable economic

burdens, but an ever increasing {147} load of ill will and skepticism.

It has in fact "shot the bird which caused the wind to blow" and goes

about its business with the corpse round its neck. Compared with that

psychological incubus, the technical deficiencies of industry, serious

though they often are, are a bagatelle, and the business men who preach

the gospel of production without offering any plan for dealing with

what is now the central fact in the economic situation, resemble a

Christian apologist who should avoid disturbing the equanimity of his

audience by carefully omitting all reference either to the fall of man

or the scheme of salvation. If it is desired to increase the output of

wealth, it is not a paradox, but the statement of an elementary

economic truism to say that active and constructive co-operation on the

part of the rank and file of workers would do more to contribute to

that result than the discovery of a new coal-field or a generation of

scientific invention.

The first condition of enlisting on the side of constructive work the

professional feeling which is now apathetic, or even hostile to it, is

to secure that when it is given its results accrue to the public, not

to the owner of property in capital, in land, or in other resources.

For this reason the attenuation of the rights at present involved in

the private ownership of industrial capital, or their complete

abolition, is not the demand of idealogues, but an indispensable

element in a policy of economic efficiency, since it is the condition

of the most effective functioning of the human beings upon whom,

though, like other truisms, it is often forgotten, {148} economic

efficiency ultimately depends. But it is only one element.

Co-operation may range from mere acquiescence to a vigilant and zealous

initiative. The criterion of an effective system of administration is

that it should succeed in enlisting in the conduct of industry the

latent forces of professional pride to which the present industrial

order makes little appeal, and which, indeed, Capitalism, in its war

upon trade union organization, endeavored for many years to stamp out

altogether.

Nor does the efficacy of such an appeal repose upon the assumption of

that "change in human nature," which is the triumphant _reductio ad

absurdum_ advanced by those who are least satisfied with the working of

human nature as it is. What it does involve is that certain elementary

facts should be taken into account, instead of, as at present, being

ignored. That all work is distasteful and that "every man desires to

secure the largest income with the least effort" may be as axiomatic as

it is assumed to be. But in practice it makes all the difference to

the attitude of the individual whether the collective sentiment of the

group to which he belongs is on the side of effort or against it, and

what standard of effort it sets. That, as employers complain, the

public opinion of considerable groups of workers is against an

intensification of effort as long as part of its result is increased

dividends for shareholders, is no doubt, as far as mere efficiency is

concerned, the gravest indictment of the existing industrial order.

But, even when public ownership has taken the place of private

capitalism, its ability to command {149} effective service will depend

ultimately upon its success in securing not merely that professional

feeling is no longer an opposing force, but that it is actively

enlisted upon the side of maintaining the highest possible standard of

efficiency which can reasonably be demanded.

To put the matter concretely, while the existing ownership of mines is

a positive inducement to inefficient work, public ownership

administered by a bureaucracy, if it would remove the technical

deficiencies emphasized by Sir Richard Redmayne as inseparable from the

separate administration of 3,000 pits by 1,500 different companies,

would be only too likely to miss a capital advantage which a different

type of administration would secure. It would lose both the assistance

to be derived from the technical knowledge of practical men who know by

daily experience the points at which the details of administration can

be improved, and the stimulus to efficiency springing from the

corporate pride of a profession which is responsible for maintaining

and improving the character of its service. Professional spirit is a

force like gravitation, which in itself is neither good nor bad, but

which the engineer uses, when he can, to do his work for him. If it is

foolish to idealize it, it is equally shortsighted to neglect it. In

what are described _par excellence_ as "the services" it has always

been recognized that _esprit de corps_ is the foundation of efficiency,

and all means, some wise and some mischievous, are used to encourage

it: in practice, indeed, the power upon which the country relied as its

main safeguard in an emergency was the professional zeal of the navy

and nothing else. Nor is {150} that spirit peculiar to the professions

which are concerned with war. It is a matter of common training,

common responsibilities, and common dangers. In all cases where

difficult and disagreeable work is to be done, the force which elicits

it is normally not merely money, but the public opinion and tradition

of the little society in which the individual moves, and in the esteem

of which he finds that which men value in success.

To ignore that most powerful of stimuli as it is ignored to-day, and

then to lament that the efforts which it produces are not forthcoming,

is the climax of perversity. To aim at eliminating from industry the

growth and action of corporate feeling, for fear lest an organized body

of producers should exploit the public, is a plausible policy. But it

is short-sighted. It is "to pour away the baby with the bath," and to

lower the quality of the service in an attempt to safeguard it. A wise

system of administration would recognize that professional solidarity

can do much of its work for it more effectively than it can do it

itself, because the spirit of his profession is part of the individual

and not a force outside him, and would make it its object to enlist

that temper in the public service. It is only by that policy, indeed,

that the elaboration of cumbrous regulations to prevent men doing what

they should not, with the incidental result of sometimes preventing

them from doing what they should--it is only by that policy that what

is mechanical and obstructive in bureaucracy can be averted. For

industry cannot run without laws. It must either control itself by

professional standards, or it must be controlled by officials who are

not of the {151} craft and who, however zealous and well-meaning, can

hardly have the feel of it in their fingers. Public control and

criticism are indispensable. But they should not be too detailed, or

they defeat themselves. It would be better that, once fair standards

have been established, the professional organization should check

offenses against prices and quality than that it should be necessary

for the State to do so. The alternative to minute external supervision

is supervision from within by men who become imbued with the public

obligations of their trade in the very process of learning it. It is,

in short, professional in industry.

For this reason collectivism by itself is too simple a solution. Its

failure is likely to be that of other rationalist systems.

"Dann hat er die Theile in seiner Hand,

Fehlt leider! nur das geistige Band."

If industrial reorganization is to be a living reality, and not merely

a plan upon paper, its aim must be to secure not only that industry is

carried on for the service of the public, but that it shall be carried

on with the active co-operation of the organizations of producers. But

co-operation involves responsibility, and responsibility involves

power. It is idle to expect that men will give their best to any

system which they do not trust, or that they will trust any system in

the control of which they do not share. Their ability to carry

professional obligations depends upon the power which they possess to

remove the obstacles which prevent those obligations from being

discharged, and upon their willingness, when they possess the power, to

use it.

{152}

Two causes appear to have hampered the committees which were

established in connection with coal mines during the war to increase

the output of coal. One was the reluctance of some of them to

discharge the invidious task of imposing penalties for absenteeism on

their fellow-workmen. The other was the exclusion of faults of

management from the control of many committees. In some cases all went

well till they demanded that, if the miners were penalized for

absenteeism which was due to them, the management should be penalized

similarly when men who desired to work were sent home because, as a

result of defective organization, there was no work for them to do.

Their demand was resisted as "interference with the management," and

the attempt to enforce regularity of attendance broke down. Nor, to

take another example from the same industry, is it to be expected that

the weight of the miners' organization will be thrown on to the side of

greater production, if it has no power to insist on the removal of the

defects of equipment and organization, the shortage of trams, rails,

tubs and timber, the "creaming" of the pits by the working of easily

got coal to their future detriment, their wasteful layout caused by the

vagaries of separate ownership, by which at present the output is

reduced.

The Acquisitive Society · 第 9 / 12 段