constantly supervised if peace among individuals or among nations is to be preserved.

However, science and industry did much to counterbalance the pressure of population. Discoveries and inventions have enabled us to do what was impossible to the contemporaries of Adam Smith, or on the other hand to do it in only a fraction of the time, improving on quality and serviceability besides. What seemed like a unique Industrial Revolution at the end of the eighteenth century in England has since been followed by changes just as momentous and spread over a far larger area in Europe and in the western hemisphere. The substitution of mechanical for human or animal power was the first step toward an incalculable development of natural resources. Machino-facture displaced manu-facture; the domestic system was replaced by the factory system; personal ties between employer and employee gave way to purely legal ties; division of labor to specialization and integration of processes multiplying wonderfully the productivity of men, though also cramping their faculties of 'mind. Large-scale production seemed to demand this sacrifice. Capital intervened between producers so as to divide them into groups with distinct, often irreconcilable, interests. Saving was still important, but ingenuity and captaincy vastly more so. Investments counted, and land no longer measured wealth. To own a surplus was everything, but how it was acquired was less than ever a question of personal diligence or mastery of a craft. The metamorphosis that was so evident to the eye called also for a metamorphosis of minds, or at least for a shifting of emphasis from the mastery of subjects to a mastery of men! He who knew how to organize material and men in their legal relations under freedom of contract did

better than he who grasped merely their technical interdependence!

A roundabout process of production was shown to bring the best results. Though the initial expense might be enormous, it paid in the end, for the flow of goods was so regular, the yield so colossal that nations grew richer than ever. Indirect methods of production, ramified technical coöperation, the objectification of personal assets and endeavors through capitalism, and the economic interdependence of peoples the world over-such became outstanding features of modern life. The socio-economic mechanism had become incredibly complex.

Nothing but a marvelous development of the means of communication and of transportation could meet the requirements of this most recent situation. Nothing short of decided changes in popular ideals and professional knowledge could be expected in return.

Communication by degrees served relatively less for the exchange of news and views, and more as an indispensable link in the chain of want, effort, and gratification. Market conditions had to be quickly appraised and put at the disposal of parties separated by many hundreds and even thousands of miles. Equalization of demands in point of time and place resulted from this interchange of intelligence and served to economize labor, besides leveling prices and profits. For rapid transit the telegraph proved as valuable as steam-power itself; and from the standpoint of government nothing was more needed than an apparatus by which outlying districts of administration could be swiftly reached, for instruction or inquiry, as the case might be. National consciousness depended on uniformity of beliefs and customs, and rapidity of communication took first place as an agency for bringing this about.

Hence the progress in communication must be con

sidered one of the essentials to an understanding of nineteenth century economic developments. The variety of devices invented to convey and preserve thought is as remarkable as the diversification of our material products for daily consumption. Sound and sign-or in Greek words, phone and graph-gained prestige in the economic sense no less than in the wider intellectual. Everywhere symbols, audible and visible: Telephone and telegraph, radiograph and automatic telephoning, phonograph and dictograph, rotary press and multigraph, photography and kinematograph, linotype and typewriter machines-all these and more rendered service, shortening distances, carrying thought with lightning speed, multiplying our records and preserving them as tone or letter.

Transportation not unnaturally kept strides with this. revolution in communication. The railroad and the steamship at the very beginning of the nineteenth century were discussed as feasible instruments of traffic. Steam displaced muscular energy, and rails the once indispensable pike. Yet steam-roads have found a rival in electric traction, while automobile and aeroplane have in part at least made us independent of iron tracks. Sailing ship and stage-coach still have their uses, but the business world has long since found them inadequate. What is wanted is high speed, regularity and frequency of movements, safety and utmost comfort, cheapness and independence of weather conditions. Thus only can the productive machinery be kept going; thus only can the whole earth serve as a single market in which nations bid against one another, as once upon a time individuals at a fair. Perishables can thus be transported over vast distances and seasonal products be supplied the whole year round. Large markets and localization of industry go hand in hand. To produce