The famous lines in which Piccarda explains to Dante the order of

Paradise are a description of a complex and multiform society which is

united by overmastering devotion to a common end. By that end all

stations are assigned and all activities are valued. The parts derive

their quality from their place in the system, and are so permeated by

the unity which they express that they themselves are glad to be

forgotten, as the ribs of an arch carry the eye from the floor from

which they spring to the vault in which they meet and interlace.

Such a combination of unity and diversity is possible only to a society

which subordinates its activities to the principle of purpose. For

what that principle offers is not merely a standard for determining the

relations of different classes and groups of producers, but a scale of

moral values. Above all, it assigns to economic activity itself its

proper place as the servant, not the master, of society. The burden of

our civilization is not merely, as many suppose, that the product of

industry is ill-distributed, or its conduct tyrannical, or its

operation interrupted by embittered disagreements. It is that industry

itself has come to hold a position of exclusive predominance among

human interests, which no single interest, and least of all the

provision of the {184} material means of existence, is fit to occupy.

Like a hypochondriac who is so absorbed in the processes of his own

digestion that he goes to his grave before he has begun to live,

industrialized communities neglect the very objects for which it is

worth while to acquire riches in their feverish preoccupation with the

means by which riches can be acquired.

That obsession by economic issues is as local and transitory as it is

repulsive and disturbing. To future generations it will appear as

pitiable as the obsession of the seventeenth century by religious

quarrels appears to-day; indeed, it is less rational, since the object

with which it is concerned is less important. And it is a poison which

inflames every wound and turns each trivial scratch into a malignant

ulcer. Society will not solve the particular problems of industry

which afflict it, until that poison is expelled, and it has learned to

see industry itself in the right perspective. If it is to do that, it

must rearrange its scale of values. It must regard economic interests

as one element in life, not as the whole of life. It must persuade its

members to renounce the opportunity of gains which accrue without any

corresponding service, because the struggle for them keeps the whole

community in a fever. It must so organize industry that the

instrumental character of economic activity is emphasized by its

subordination to the social purpose for which it is carried on.

{185}

INDEX

Abolition of private ownership, 147

Absenteeism, 152

Absolute rights, 50-51

Absolutism in industry, 144

Acquisitive societies, 29-32

Administration, 115-116

Allocation of power, 163-164

American Constitution, 18-19, 52

Annuities, 74

Arbitration, compulsory, 101

Bacon, quoted, 58, 181

Bentham, 16, 52, 55

Brain workers, position of the, 161-171

British Coal Industry, reorganization of, 166-171

Building Guilds, 103

Building Trade Report, 106-110

Bureaucracy, 116, 149

Capitalism, and production, 173-176; downward thrust of, 154;

in America, 101; losing control, 141-142, 148

Cecil, Lord Hugh, 23, 58

Cecil, Robert, 59

Cecil, William, 59

Church and State, 10-13

Coal Industry Commission, 71, 126, 137, 143; report of, 166-167

Coal Mines Committees, 152

Combinations, 125, 130

Committee on Trusts, 153

Competition, 27

Compulsory arbitration, 101

Confiscations, 103

Conservatism, the New, 28

Consumer, exploitation of the, 133-134

Co-operative Movement and cost of coal, 125

Dante, quoted, 182-183

Death Duties, 22

Democratic control, 116

Dickenson, Sir Arthur Lowes, 71

Directorate control, 129

Duckham, Sir Arthur, 119

Duke of Wellington, quoted, 123

Economic confusion, cause of, 131-132

Economic discontent, increase of, 5

Economic egotism, 27,

Economic expansion, 9

Efficiency, the condition of, 139-160; through _Esprit de Corps_, 149-150

Employer, waning power of the, 140

England, and natural right, 15-16; and France contrasted, 16-17;

Industrialism in, 44-47; Liberal Movement in, 18;

over-crowding of population in, 37; proprietary rights in,

64 _et seq._

English landlordism, 22-23

Englishmen, characteristics of, 1-3; vanity of, 129

English Revolution of 1688, 52

Esch-Cummins Act, 118

Expediency, rule of, 16

Feudalism, 18

Fixed salaries, 177-178

Forced labor, 102

France, social and industrial conditions in, 16-17;

Feudalism in, 18; Revolution in, 15, 65, 69

French Revolution, 15, 65, 69

Function, definition of, 8; as a basis for remuneration, 41-42;

as a basis of social reorganization, 180; Function and Freedom, 7

Functional Society, 29, 84-90

Functionless property-owners, 79, 86; abolishment of, 87-88;

an expensive luxury, 87

Gainford, Lord, quoted, 26, 111

Gantt, H. L., 175

Government control in war time, 25-26

Ground-rents, 89-90, 91

Hobson, Mr., 63

"Hundred-Family Man," 178

Imperial Tobacco Company, 116

Incomes, 41

Income Tax, 22

Income without service, 68

Individualism, 48-49

Individual rights, 9

Individual rights _vs._ social functions, 27

Industrial problems, 7

Industrial reorganization, 151, 155

Industrial revolution, 9

Industrial societies, 9

Industrial warfare, cause of, and remedy for, 40-42

Industrialism, 18; a poison, 184; compared to Militarism, 44-46;

exaggerated estimate of its importance, 45-46; failure of present

system, 139-141; nemesis of, 33-51; spread of, 30; tendency of,

31-32

Industry, and a profession, 94, 97; as a profession, 91 _et seq._,

125-126; deficiencies of, 147; definition of, 6; how private

control of may be terminated, 103-104; and the advantages of such

a change, 106; Building Trades' Plan for, 108, 111; motives in,

155-159; nationalization of, 104, 114-118; present organization

of intolerable, 129; purpose of, 8, 46, 181; right organization

of, 6-7; the means not the end, 46-47

Inheritance taxes, 90

Insurance, 74

Joint control, 111-112

Joint-stock companies, 66

Joint-stock organizations, 97

Labor, absolute rights of, 28; and capital, 98-100, 108; compulsory,

100; control of breaking down, 139 _et seq._; degradation of, 35;

forced, 102

League of Nations, 101

Liberal Movement, 18

Locke, 14, 52, 55

Management divorced from ownership, 112-113

Mann, Sir John, 126

Militarism, 44-45

Mill, quoted, 89

Mine managers, position of, 162, 166-168

Mining royalties, 23-24, 88

Nationalism, 48-49

Nationalization, 114, 117; of the Coal Industry, 115, 165, 168-169

Natural right in France, 15; in England, 15-16; doctrine of, 21

Officials, position under the present economic system, 162

Old industrial order a failure, 139; its effect on the consumer, 144

Organization, for public service instead of private gains, 127

Over-centralization, 121

Ownership, a new system of, 112-114

Pensioners, 34

Poverty a symptom of social disorder, 5

Private enterprise and public ownership, 118-120

Private ownership, 120; abolition of, 147; of industrial capital,

105-106

Private rights and public welfare, 14-15

Privileges, 24

Producer, obligation of the, 127-128; responsibility of, 128

Production, increased, 5; large scale and small scale, 87;

misdirection of, 37-39; why not increased, 136

Productivity, 4, 46

Professional Spirit, the, 149-150

Profits, and production, 173-176; division of, 133

Proletariat, 19, 65

Property, absolute rights of, 52, 80; and creative work, 52 _et seq._;

classification of, 63, 64; complexity of, 75; functionless, 76-77, 81;

in land, 56-60; in rights and royalties, 62; minority ownership

of, 79; most ambiguous of categories, 53-54; passive ownership of,

62; private, 70-72; protection of, 78-70; rights, 50-51; security in,

72-73; socialist fallacy regarding, 86

Proudhon, 54

Publicity of costs and profits, 85, 123-124, 126, 132

Redmayne, Sir Richard, 149

Reformation the, 10-13; effect on society, 12-14

Reform Bill of 1832, 69

Religion, 10; changes in, 11-12

Report of the United States Industrial Commission, 1916, 128-129

Riches, meaning of, 98

Rights of Man, French Declaration of, the, 16, 52

Rights, and Functions, 8-19; doctrine of, 21 _et seq._, 43-44; without

functions, 61

Rights of the shareholder, 75

Royalties, 23-24, 62

Royalties, and property, 70; from coal mining properties, 88; a tax

upon the industry of others, 89

Sankey, Justice, 115, 117, 143, 165, 167, 168, 169

Security of income, 73-75

Service as a basis of remuneration, 25, 41-42, 85, 133

Shareholders, 91-92

Shells, cost of making, 124-125

Smith, Adam, 15, 52, 95

Social inequality, 36-37

Social reorganizations, schemes for, 5

Social war, 40

Socialism, 53

Society, duality of modern, 135

Society, functional organization of, 52

State management, 116, 117

Steel Corporation, 116

Supervision from within, 151

Syndicalism, 130

Taxation, 22

Trusts, Report on, 23

United States, transformation in, 65

Utilitarians, the English, 17

Utility, 16-17

"Vicious Circle," the, 43, 123-138

Voltaire, quoted, 55

Wages and costs, 131

Wages and profits, 78

Wealth, acquisition of, 20 _et seq._; as foundation for public esteem,

35-36; distribution of on basis of function, 77; fallacy of increased,

42-45; how to increase output of, 147; inequality of, 37-38;

limitation of, 36-37; output of, 37-38; production and consumption

of--a contrast, 77-78; waste of, 37-39

Whitley Councils, 110

Women self-supporting, 74

Worker and Spender, 77-78

Workers, collective responsibility of, 154

Workers' control, 128

Workmen, as "hands," 152; present independence of, 145-146;

responsibility of destroyed, 153-154; servants of shareholders,

136-137; treatment of, 152-153

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