Chapter VIII: Competition (3)

What is the species of domestic industry which his capital can employ, and of which the product is likely to be of the greatest value, every individual, it is evident, can, in his local situation, judge much better than any statesman or lawgiver can do for him. The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it.

3. Competition and Freedom[194]

What, after all, is competition? Is it something that exists and acts of itself, like the cholera? No, competition is simply the absence of oppression. In reference to the matters that interest me, I _prefer_ to choose for myself and I do not want anyone else to choose for me against my will; that's all. And if anyone undertakes to substitute his judgment for mine in matters that concern me I shall demand the privilege of substituting my wishes for his in matters which concern him. What guaranty is there that this arrangement will improve matters? It is evident that competition is liberty. To destroy liberty of action is to destroy the possibility and consequently the faculty of choosing, judging, comparing; it is to kill intelligence, to kill thought, to kill man himself. Whatever the point of departure, there is where modern reforms always end; in order to improve society it is necessary to annihilate the individual, upon the assumption that the individual is the source of all evil, and as if the individual was not likewise the source of all good.

4. Money and Freedom[195]

Money not only makes the relation of individuals to the group a more independent one, but the content of the special forms of associations and the relations of the participants to these associations is subject to an entirely new process of differentiation.

The medieval corporations included in themselves all the human interests. A guild of cloth-makers was not an association of individuals which cultivated the interests of cloth-making exclusively. It was a community in a vocational, personal, religious, political sense and in many other respects. And however technical the interests that might be grouped together in such an association, they had an immediate and lively interest for all members. Members were wholly bound up in the association.

In contrast to this form of organization the capitalistic system has made possible innumerable associations which either require from their members merely money contributions or are directed toward mere money interests. In the case of the business corporation, especially, the basis of organization of members is exclusively an interest in the dividends, so exclusively that it is a matter of entire indifference to the individual what the society (enterprise) actually produces.

The independence of the person of the concrete objects, in which he has a mere money interest, is reflected, likewise, in his independence, in his personal relations, of the other individuals with whom he is connected by an exclusive money interest. This has produced one of the most effective cultural formations--one which makes it possible for individuals to take part in an association whose objective aim it will promote, use, and enjoy without this association bringing with it any further personal connection or imposing any further obligation. Money has brought it about that one individual may unite himself with others without being compelled to surrender any of his personal freedom or reserve. That is the fundamental and unspeakably significant difference between the medieval form of organization which made no difference between the association of men as men and the association of men as members of an organization. The medieval form or organization united equally in one circle the entire business, religious, political, and friendly interests of the individuals who composed it.

III. INVESTIGATIONS AND PROBLEMS

1. Biological Competition

The conception of competition has had a twofold origin: in the notions (a) of the struggle for existence and (b) of the struggle for livelihood. Naturally, then, the concept of competition has had a parallel development in biology and in economics. The growth of the notion in these two fields of thought, although parallel, is not independent. Indeed, the fruitful process of interaction between the differing formulations of the concept in biology and economics is a significant illustration of the cross-fertilization of the sciences. Although Malthus was a political economist, his principle of population is essentially biological rather than economic. He is concerned with the struggle for existence rather than for livelihood. Reacting against the theories of Condorcet and of Godwin concerning the natural equality, perfectability, and inevitable progress of man, Malthus in 1798 stated the dismal law that population tends to increase in geometrical progression and subsistence in arithmetical progression. In the preface to the second edition of his _Essay on the Principle of Population_ Malthus acknowledged his indebtedness to "Hume, Wallace, Dr. Adam Smith and Dr. Price." Adam Smith no doubt anticipated and perhaps suggested to Malthus his thesis in such passages in the _Wealth of Nations_ as, "Every species of animals naturally multiplies in proportion to the means of their subsistence," "The demand for men necessarily regulates the production of men." These statements of the relation of population to food supply, however, are incidental to Smith's general theories of economics; the contribution of Malthus lay in taking this principle out of its limited context, giving it the character of scientific generalization, and applying it to current theories and programs of social reform.

The debt of biology to Malthus is acknowledged both by Darwin and by Wallace. Fifteen months after Darwin had commenced his inquiry a chance reading of Malthus' _Essay on the Principle of Population_ gave him the clue to the explanation of the origin of species through the struggle for existence. During an attack of intermittent fever Wallace recalled Malthus' theory which he had read twelve years before and in it found the solution of the problem of biological evolution.

Although the phrase "the struggle for existence" was actually used by Malthus: Darwin, Wallace, and their followers first gave it a general application to all forms of life. Darwin in his _The Origin of Species_, published in 1859, analyzed with a wealth of detail the struggle for existence, the nature and forms of competition, natural selection, the survival of the fittest, the segregation and consequent specialization of species.

Biological research in recent years has directed attention away from the theory of evolution to field study of plant and animal communities. Warming, Adams, Wheeler, and others have described, in their plant and animal ecologies, the processes of competition and segregation by which communities are formed. Clements in two studies, _Plant Succession_ and _Plant Indicators_, has described in detail the life-histories of some of these communities. His analysis of the succession of plant communities within the same geographical area and of the relations of competitive co-operation of the different species of which these communities are composed might well serve as a model for similar studies in human ecology.

2. Economic Competition

Research upon competition in economics falls under two heads: (a) the natural history of competition, and (b) the history of theories of competition.

a) Competition on the economic level, i.e., of struggle for livelihood, had its origins in the market place. Sir Henry Maine, on the basis of his study of village communities, states in effect that the beginnings of economic behavior are first to be seen in neutral meeting places of strangers and foes.

In order to understand what a market originally was, you must
try to picture to yourselves a territory occupied by
village-communities, self-acting and as yet autonomous, each
cultivating its arable land in the middle of its waste, and
each, I fear I must add, at perpetual war with its neighbour.
But at several points, points probably where the domains of two
or three villages converged, there appear to have been spaces
of what we should now call neutral ground. These were the
Markets. They were probably the only places at which the
members of the different primitive groups met for any purpose
except warfare, and the persons who came to them were doubtless
at first persons especially empowered to exchange the produce
and manufactures of one little village-community for those of
another. But, besides the notion of neutrality, another idea
was anciently associated with markets. This was the idea of
sharp practice and hard bargaining.

What is the real origin of the feeling that it is not
creditable to drive a hard bargain with a near relative or
friend? It can hardly be that there is any rule of morality to
forbid it. The feeling seems to me to bear the traces of the
old notion that men united in natural groups do not deal with
one another on principles of trade. The only natural group in
which men are now joined is the family; and the only bond of
union resembling that of the family is that which men create
for themselves by friendship.

The general proposition which is the basis of Political
Economy, made its first approach to truth under the only
circumstances which admitted of men meeting at arm's length,
not as members of the same group, but as strangers. Gradually
the assumption of the right to get the best price has
penetrated into the interior of these groups, but it is never
completely received so long as the bond of connection between
man and man is assumed to be that of family or clan connection.
The rule only triumphs when the primitive community is in
ruins. What are the causes which have generalized a Rule of the
Market until it has been supposed to express an original and
fundamental tendency of human nature, it is impossible to state
fully, so multifarious have they been. Everything which has
helped to convert a society into a collection of individuals
from being an assemblage of families has helped to add to the
truth of the assertion made of human nature by the Political
Economists.[196]

The extension of the relations of the market place to practically all aspects of life having to do with livelihood has been the outcome of the industrial revolution and the growth of Great Society. Standardization of commodities, of prices, and of wages, the impersonal nature of business relations, the "cash-nexus" and the credit basis of all human relations has greatly extended the external competitive forms of interaction. Money, with its abstract standards of value, is not only a medium of exchange, but at the same time symbol par excellence of the economic nature of modern competitive society.

The literature describing change from the familial communism, typical of primitive society, to the competitive economy of modern capitalistic society is indicated in the bibliography.

b) The history of competition as a concept in political economy goes back to the Physiocrats. This French school of economists, laying stress upon the food supply as the basis and the measure of the wealth of the nation, demanded the abolition of restrictions upon agricultural production and commerce. The Physiocrats based their theories upon the natural rights of individuals to liberty.

The miserable state of the nation seemed to demand a _volte
face_. Taxes were many and indirect. Let them be single and
direct. Liberty of enterprise was shackled. Let it be free.
State-regulation was excessive. _Laissez-faire!_ Their economic
plea for liberty is buttressed by an appeal to Nature, greater
than kings or ministers, and by an assertion of the natural,
inherent rights of man to be unimpeded in his freedom except so
far as he infringes upon that of others.[197]

While the Physiocrats emphasized the beneficent effects of freedom in industry to which the individual has a natural right, Adam Smith, in his book _The Wealth of Nations_, emphasized the advantages of competition. To him competition was a protection against monopoly. "It [competition] can never hurt either the consumer or the producer; on the contrary it must tend to make the retailers both sell cheaper and buy dearer than if the whole trade was monopolized by one or two persons!"[198] It was at the same time of benefit to both producer and consumer. "Monopoly is a great enemy to good management which can never be universally established but in consequence of that free and universal competition which forces everybody to have recourse to it for the sake of self-defence."[199]

Before Darwin, competition had been conceived in terms of freedom and of the natural harmony of interests. His use of the term introduced into competition the notion of struggle for existence and the survival of the fittest. This new conception, in which competition appears as a fundamental process in all life, has been a powerful prop to the laissez faire policy and has led to its continuance regardless of the misery and destitution which, if it did not create, it certainly did not remedy. The works of Herbert Spencer, the greatest expounder of the doctrine of evolution, contain a powerful massing of evidence in favor of laissez faire as a conclusion to be drawn from a scientific study of human behavior. "Nothing but the slow modifications of human nature by the discipline of social life," he said, "can produce permanently advantageous changes. A fundamental error pervading the thinking of nearly all parties, political and social, is that evils admit of immediate and radical remedies."[200]

With the growth of large-scale production with the tendency to the formation of combinations and monopolies, as a result of freedom of competition, works began to appear on the subject of unrestricted competition. The expressions "unfair" and "cut-throat" competition, which occur frequently in recent literature, suggest the new point of view. Another euphemism under which other and more far-reaching proposals for the limitation of competition and laissez faire have been proposed is "social justice." In the meantime the trend of legislation in England for a hundred years, as Mr. A. V. Dicey[201] has pointed out, has been, in spite of Herbert Spencer, away from the individualistic and in the direction of a collectivistic social order. This means more legislation, more control, and less individual liberty.

The full meaning of this change in law and opinion can only be fully understood, however, when it is considered in connection with the growth of communication, economic organization, and cities, all of which have so increased the mutual interdependence of all members of society as to render illusory and unreal the old freedoms and liberties which the system of laissez faire was supposed to guarantee.

3. Competition and Human Ecology

The ecological conception of society is that of a society created by competitive co-operation. Adam Smith's _Wealth of Nations_ was a description of society in so far as it is a product of economic competition. David Ricardo, in his _Principles of Political Economy_, defined the process of competition more abstractly and states its consequences with more ruthless precision and consistency. "His theory," says Kolthamer in his introduction, "seems to be an everlasting justification of the _status quo_. As such at least it was used."

But Ricardo's doctrines were both "a prop and a menace to the middle classes," and the errors which they canonized have been the presuppositions of most of the radical and revolutionary programs since that time.

The socialists, adopting his theories of value and wages,
interpreted Ricardo's crude expressions to their own advantage.
To alter the Ricardian conclusions, they said, alter the social
conditions upon which they depend: to improve upon subsistence
wage, deprive capital of what it steals from labour--the value
which labour creates. The land-taxers similarly used the
Ricardian theory of rent: rent is a surplus for the existence
of which no single individual is responsible--take it therefore
for the benefit of all, whose presence creates it.[202]

The anarchistic, socialistic, and communistic doctrines, to which reference is made in the bibliography, are to be regarded as themselves sociological phenomena, without reference to their value as programs. They are based on ecological and economic conceptions of society in which competition is the fundamental fact and, from the point of view of these doctrines, the fundamental evil of society. What is sociologically important in these doctrines is the wishes that they express. They exhibit among other things, at any rate, the character which the hopes and the wishes of men take in this vast, new, restless world, the Great Society, in which men find themselves but in which they are not yet, and perhaps never will be, at home.

4. Competition and the "Inner Enemies": the Defectives, the Dependents, and the Delinquents

Georg Simmel, referring, in his essay on "The Stranger," to the poor and the criminal, bestowed upon them the suggestive title of "The Inner Enemies." The criminal has at all times been regarded as a rebel against society, but only recently has the existence of the dependent and the defective been recognized as inimical to the social order.[203]

Modern society, so far as it is free, has been organized on the basis of competition. Since the status of the poor, the criminal, and the dependent, has been largely determined by their ability or willingness to compete, the literature upon defectiveness, dependency, and delinquency may be surveyed in its relation to the process of competition. For the purposes of this survey the dependent may be defined as one who is unable to compete; the defective as the person who is, if not unable, at least handicapped, in his efforts to compete. The criminal, on the other hand, is one who is perhaps unable, but at any rate refuses, to compete according to the rules which society lays down.

Malthus' _Essay on the Principle of Population_ first called attention to the pathological effects of the struggle for existence in modern society and emphasized the necessity of control, not merely in the interest of the defeated and rejected members of society, but in the interest of society itself. Malthus sought a mitigation, if not a remedy, for the evils of overpopulation by what he called "moral restraint," that is, "a restraint from marriage, from prudential motives, with a conduct strictly moral during the period of restraint." The alternatives were war, famine, and pestilence. These latter have, in fact, been up to very recent times the effective means through which the problem of overpopulation has been solved.

The Neo-Malthusian movement, under the leadership of Francis Place, Richard Carlile, and Robert Dale Owen in the decade of 1820-30 and of Charles Bradlaugh and Annie Besant in the decade of 1870-80, advocated the artificial restriction of the family. The differential decline in the birth-rate, that is, the greater decrease in the number of children in the well-to-do and educated classes as compared with the poor and uneducated masses, was disclosed through investigations by the Galton Eugenics Laboratory in England and characterized as a national menace. In the words of David Heron, a study of districts in London showed that "one-fourth of the married population was producing one-half of the next generation." In United States less exhaustive investigation showed the same tendency at work and the alarm which the facts created found a popular expression in the term "race-suicide."

It is under these circumstances and as a result of investigations and agitations of the eugenists, that the poor, the defective, and the delinquent have come to be regarded as "inner enemies" in a sense that would scarcely have been understood a hundred years ago.

Poverty and dependency in modern society have a totally different significance from that which they have had in societies in the past. The literature descriptive of primitive communities indicated that in the economic communism of a society based on kinship, famines were frequent but poverty was unknown. In ancient and medieval societies the dependency, where it was not professional, as in the case of the mendicant religious orders, was intimate and personal. In this respect it differed widely from the organized, official, and supervised philanthropy of our modern cities.

With the abolition of serfdom, the break-up of the medieval guilds, and the inauguration of a period of individual freedom and relatively unrestricted competition (laissez faire) which ushered in the modern industrial order, the struggle for existence ceased to be communal, and became individual. The new order based on individual freedom, as contrasted with the old order based on control, has been described as a system in which every individual was permitted to "go to hell in his own individual way." "The only purpose for which power can be rightfully exercised over any member of a civilized community, against his will," said Mill, "is to prevent harm to others. His own good either physical or moral is not a sufficient warranty." Only when the individual became a criminal or a pauper did the state or organized society attempt to control or assist him in the competitive struggle for existence.[204]

Since competitive industry has its beginnings in England, the study of the English poor laws is instructive. Under the influence of Malthus and of the classical economists the early writers upon poverty regarded it as an inevitable and natural consequence of the operation of the "iron laws" of political economy. For example, when Harriet Martineau was forced to admit, by the evidence collected by the Factory Commissioners in 1833, that "the case of these wretched factory children seems desperate," she goes on to add "the only hope seems to be that the race will die out in two or three generations."

Karl Marx, accepting the Ricardian economics, emphasized the misery and destitution resulting from the competitive process, and demanded the abolition of competition and the substitution therefor of the absolute control of a socialistic state.

Recent studies treat poverty and dependency as a disease and look to its prevention and cure. Trade unions, trade associations, and social insurance are movements designed to safeguard industry and the worker against the now generally recognized consequences of unlimited competition. The conceptions of industrial democracy and citizenship in industry have led to interesting and promising experiments.

In this connection, the efforts of employers to protect themselves as well as the community from accidents and occupational diseases may be properly considered. During and since the Great War efforts have been made on a grand scale to rehabilitate, re-educate, and restore to usefulness the war's wounded soldiers. This interest in the former soldiers and the success of the efforts already made has led to an increased interest in all classes of the industrially handicapped. A number of surveys have been made, in different parts of the country, of the crippled, and efforts are in progress to discover occupations and professions in which the deaf, the blind, and otherwise industrially handicapped can be employed and thus restored to usefulness and relative independence.

The wide extension of the police power in recent times in the interest of public health, sanitation, and general public welfare represents the effort of the government, in an individualistic society in which the older sanctions and securities no longer exist, to protect the individual as well as the community from the effects of unrestricted competition.

The literature of criminology has sought an answer to the enigma of the criminal. The writings of the European criminologists run the gamut of explanation from Lombroso, who explained crime as an inborn tendency of the criminal, to Tarde, who defines the criminal as a purely social product.

W. A. Bonger,[205] a socialist, has sought to show that criminality is a direct product of the modern economic system. Without accepting either the evidence or the conclusions of Bonger, it cannot be gainsaid that the modern offender must be studied from the standpoint of his failure to participate in a wholesome and normal way in our competitive, secondary society which rests upon the institution of private property and individual competition.

The failure of the delinquent to conform to the social code may be studied from two standpoints: (a) that of the individual as an organization of original mental and temperamental traits, and (b) that of a person with a status and a rôle in the social group. The book _The Individual Delinquent_, by William Healy, placed the study of the offender as an individual upon a sound scientific basis. That the person can and should be regarded as part and parcel of his social milieu has been strikingly illustrated by T. M. Osborne in two books, _Within Prison Walls_ and _Society and Prisons_. The fact seems to be that the problem of crime is essentially like that of the other major problems of our social order, and its solution involves three elements, namely: (a) the analysis of the aptitudes of the individual and the wishes of the person; (b) the analysis of the activities of our society with its specialization and division of labor; and (c) the accommodation or adjustment of the individual to the social and economic environment.

SELECTED BIBLIOGRAPHY

I. BIOLOGICAL COMPETITION

(1) Crile, George W. _Man an Adaptive Mechanism._ New York, 1901.

(2) Darwin, Charles. _The Origin of Species._ London, 1859.

(3) Wallace, Alfred Russel. _Studies Scientific and Social._ 2 vols. New York, 1900.

(4) ----. _Darwinism._ An exposition of the theory of natural selection with some of its applications. Chap. iv, "The Struggle for Existence," pp. 14-40; chap. v, "Natural Selection by Variation and Survival of the Fittest," pp. 102-25. 3d ed. London, 1901.

(5) Weismann, August. _On Germinal Selection as a Source of Definite Variation._ Translated from the German. Chicago, 1896.

(6) Malthus, T. R. _An Essay on the Principle of Population._ Or a view of its past and present effects on human happiness, with an inquiry into our prospects respecting the future removal or mitigation of the evils which it occasions. 2d ed. London, 1803. [1st ed., 1798.]

(7) Knapp, G. F. "Darwin und Socialwissenschaften," _Jahrbücher für Nationalökonomie und Statistik_. Erste Folge, XVIII (1872), 233-47.

(8) Thomson, J. Arthur. _Darwinism and Human Life._ New York, 1918.

II. ECONOMIC COMPETITION

(1) Wagner, Adolf. _Grundlegung der politischen Ökonomie._ Pp. 794-828. [The modern private industrial system of free competition.] Pp. 71-137. [The industrial nature of men.] Leipzig, 1892-94.

(2) Effertz, Otto. _Arbeit und Boden._ System der politischen Ökonomie. Vol. II, chaps, xix, xx, xxi, xxiii, xxiv, pp. 237-320. Berlin, 1897.

(3) Marshall, Alfred. _Principles of Economics._ Appendix A, "The Growth of Free Industry and Enterprise," pp. 723-54. London, 1910.

(4) Seligman, E. R. A. _Principles of Economics._ Chap, x, pp. 139-53. New York, 1905.

(5) Schatz, Albert. _L'Individualisme économique et social, ses origines, son évolution, ses formes contemporaines._ Paris, 1907.

(6) Cunningham, William. _An Essay on Western Civilization in Its Economic Aspects._ Medieval and modern times. Cambridge, 1913.

III. FREEDOM AND LAISSEZ FAIRE

(1) Simmel, Georg. _Philosophie des Geldes._ Chap. iv, "Die individuelle Freiheit," pp. 279-364. Leipzig, 1900.

(2) Bagehot, Walter. _Postulates of English Political Economics._ With a preface by Alfred Marshall. New York and London, 1885.

(3) Oncken, August. _Die Maxime Laissez Faire et Laissez Passer, ihr Ursprung, ihr Werden._ Bern, 1886.

(4) Bastiat, Frédéric. _Harmonies économiques._ 9th ed. Paris, 1884.

(5) Cunningham, William. _The Growth of English Industry and Commerce in Modern Times._ Vol. III, "Laissez Faire." 3 vols. 3d ed. Cambridge, 1903.

(6) Ingram, John K. _A History of Political Economy._ Chap. v, "Third Modern Phase; System of Natural Liberty." 2d ed. New York, 1908.

(7) Hall, W. P. "Certain Early Reactions against Laissez Faire," _Annual Report of the American Historical Association for the Year 1913._ I, 127-38. Washington, 1915.

(8) Adams, Henry C. "Relation of the State to Industrial Action," _Publications of the American Economic Association_, I (1887), 471-549.

IV. THE MARKETS

(1) Walker, Francis A. _Political Economy._ Chap. ii, pp. 97-102. 3d ed. New York, 1887. [Market defined.]

(2) Grierson, P. J. H. _The Silent Trade._ A contribution to the early history of human intercourse. Edinburgh, 1903. [Bibliography.]

(3) Maine, Henry S. _Village Communities in the East and West._ Lecture VI, "The Early History of Price and Rent," pp. 175-203. New York, 1885.

(4) Walford, Cornelius. _Fairs, Past and Present._ A chapter in the history of commerce. London, 1883.

(5) Bourne, H. R. F. _English Merchants._ Memoirs in illustration of the progress of British commerce. New ed. London, 1898.

(6) Webb, Sidney and Beatrice. _Industrial Democracy._ Part III, chap. ii, "The Higgling of the Market," pp. 654-702. New ed. London, 1902.

(7) Bagehot, Walter. _Lombard Street._ A description of the money market. New York, 1876.

V. COMPETITION AND INDUSTRIAL ORGANIZATION

(1) Crowell, John F. _Trusts and Competition._ Chicago, 1915. [Bibliography.]

(2) Macrosty, Henry W. _Trusts and the State._ A sketch of competition. London, 1901.

(3) Carter, George R. _The Tendency toward Industrial Combination._ A study of the modern movement toward industrial combination in some spheres of British industry; its forms and developments, their causes, and their determinant circumstances. London, 1913.

(4) Levy, Hermann. _Monopoly and Competition._ A study in English industrial organization. London, 1911.

(5) Haney, Lewis H. _Business Organization and Combination._ An analysis of the evolution and nature of business organization in the United States and a tentative solution of the corporation and trust problems. New York, 1914.

(6) Van Hise, Charles R. _Concentration and Control._ A solution of the trust problem in the United States. New York, 1912.

(7) Kohler, Josef. _Der unlautere Wettbewerb._ Darstellung des Wettbewerbsrechts. Berlin und Leipzig, 1914.

(8) Nims, Harry D. _The Law of Unfair Business Competition._ Including chapters on trade secrets and confidential business relations; unfair interference with contracts; libel and slander of articles of merchandise, trade names and business credit and reputation. New York, 1909.

(9) Stevens, W. H. S. _Unfair Competition._ A study of certain practices with some reference to the trust problem in the United States of America. Chicago, 1917.

(10) Eddy, Arthur J. _The New Competition._ An examination of the conditions underlying the radical change that is taking place in the commercial and industrial world; the change from a competitive to a co-operative basis. New York, 1912.

(11) Willoughby, W. W. _Social Justice._ A critical essay. Chap. ix, "The Ethics of the Competitive Process," pp. 269-315. New York, 1900.

(12) Rogers, Edward S. _Good Will, Trade-Marks and Unfair Trading._ Chicago, 1914.

VI. SOCIALISM AND ANARCHISM

(1) Stirner, Max. (Kaspar Schmidt). _The Ego and His Own._ Translated from the German by S. T. Byington. New York, 1918.

(2) Godwin, William. _An Enquiry Concerning Political Justice and Its Influence on General Virtue and Happiness._ Book V, chap. xxiv. London, 1793.

(3) Proudhon, Pierre Joseph. _What Is Property?_ An inquiry into the principle of right and of government. Translated from the French by B. R. Tucker. New York, 189-?

(4) Zenker, E. V. _Anarchism._ A criticism and history of the anarchist theory. Translated from the German. New York, 1897. [With bibliographical references.]

(5) Bailie, William. _Josiah Warren, the First American Anarchist._ A sociological study. Boston, 1906.

(6) Russell, B. A. W. _Proposed Roads to Freedom._ Socialism, anarchism, and syndicalism. New York, 1919.

(7) Mackay, Thomas, editor. _A Plea for Liberty._ An argument against socialism and socialistic legislation. New York, 1891.

(8) Spencer, Herbert. "The Man _versus_ the State," Appendix to _Social Statics_. New York, 1897.

(9) Marx, Karl, and Engels, Frederick. _Manifesto of the Communist Party._ Authorized English translation edited and annotated by Frederick Engels. London, 1888.

(10) Stein, L. _Der Socialismus und Communismus des heutigen Frankreichs._ Ein Beitrag zur Zeitgeschichte. Leipzig, 1848.

(11) Guyot, Édouard. _Le Socialisme et l'évolution de l'Angleterre contemporaine_ (1880-1911). Paris, 1913.

(12) Flint, Robert. _Socialism._ 2d ed. London, 1908.

(13) Beer, M. _A History of British Socialism._ Vol. I, "From the Days of the Schoolmen to the Birth of Chartism." Vol. II, "From Chartism to 1920." London, 1919-21.

(14) Levine, Louis. _Syndicalism in France._ 2d ed. New York, 1914.

(15) Brissenden, Paul F. _The I. W. W._ A study of American syndicalism. New York, 1919. [Bibliography.]

(16) Brooks, John Graham. _American Syndicalism._ New York, 1913.

(17) ----. _Labor's Challenge to the Social Order._ Democracy its own critic and educator. New York, 1920.

VII. COMPETITION AND "THE INNER ENEMIES"

A. _The Struggle for Existence and Its Social Consequences_

(1) Henderson, Charles R. _Introduction to the Study of the Dependent, Defective, and Delinquent Classes, and of Their Social Treatment._ 2d ed. Boston, 1908.

(2) Grotjahn, Alfred. _Soziale Pathologie._ Versuch einer Lehre von den sozialen Beziehungen der menschlichen Krankheiten als Grundlage der sozialen Medizin und der sozialen Hygiene. Berlin, 1912.

(3) Lilienfeld, Paul de. _La Pathologie sociale._ Avec une préface de René Worms. Paris, 1896.

(4) Thompson, Warren S. _Population._ A study in Malthusianism. New York, 1915.

(5) Field, James A. "The Early Propagandist Movement in English Population Theory," _American Economic Association Bulletin_, 4th Ser., I (1911), 207-36.

(6) Heron, David. _On the Relation of Fertility in Man to Social Status._ And on the changes in this relation that have taken place during the last fifty years. London, 1906.

(7) Elderton, Ethel M. "Report on the English Birthrate." University of London, Francis Galton Laboratory for National Eugenics. _Eugenics Laboratory Memoirs_, XIX-XX. London, 1914.

(8) D'Ambrosio, Manlio A. _Passività Economica._ Primi principi di una teoria sociologica della popolazione economicamente passiva. Napoli, 1909.

(9) Ellwood, Charles A. _Sociology and Modern Social Problems._ Rev. ed. New York, 1913.

B. _Poverty, Labor, and the Proletariat_

(1) Woods, Robert A., Elsing, W. T., and others. _The Poor in Great Cities._ Their problems and what is being done to solve them. New York, 1895.

(2) Rowntree, B. Seebohm. _Poverty, a Study of Town Life._ London, 1901.

(3) Devine, Edward T. _Misery and Its Causes._ New York, 1909.

(4) Marx, Karl. _Capital._ A critical analysis of capitalist production. Chap. xv, "Machinery and Modern Industry." Translated from the third German edition by Samuel Moore and Edward Aveling, and edited by Frederick Engels. London, 1908.

(5) Hobson, John A. _Problems of Poverty._ An inquiry into the industrial condition of the poor. London, 1891.

(6) Kydd, Samuel [Alfred, pseud.] _The History of the Factory Movement._ From the year 1802 to the enactment of the ten hours' bill in 1847. 2 vols. London, 1857.

(7) Rowntree, B. S., and Lasker, Bruno. _Unemployment, a Social Study._ London, 1911.

(8) Beveridge, William Henry. _Unemployment._ A problem of industry. 3d ed. London, 1912.

(9) Parmelee, Maurice. _Poverty and Social Progress._ New York, 1916.

(10) Gillin, John L. _Poverty and Dependency._ Their relief and prevention. New York, 1921.

(11) Sombart, Werner. _Das Proletariat; Bilder und Studien._ Frankfurt am Main, 1906.

(12) Riis, Jacob A. _How the Other Half Lives._ Studies among the tenements of New York. New York, 1890.

(13) Nevinson, Margaret W. _Workhouse Characters and Other Sketches of the Life of the Poor._ London, 1918.

(14) Sims, George R. _How the Poor Live; and Horrible London._ London, 1898.

C. _The Industrially Handicapped_

(1) Best, Harry. _The Deaf._ Their position in society and the provision for their education in the United States. New York, 1914.

(2) ----. _The Blind._ Their condition and the work being done for them in the United States. New York, 1919.

(3) United States Bureau of the Census. _The Blind and the Deaf, 1900._ Washington, 1906.

(4) ----. _Deaf-Mutes in the United States._ Analysis of the census of 1910 with summary of state laws relating to the deaf as of January 1, 1918. Washington, 1918.

(5) ----. _The Blind in the United States 1910._ Washington, 1917.

(6) Niceforo, Alfredo. _Les Classes pauvres._ Recherches anthropologiques et sociales. Paris, 1905.

(7) Goddard, Henry H. _Feeble-mindedness, Its Causes and Consequences._ Chap. i, "Social Problems," pp. 1-20. New York, 1914.

(8) Popenoe, Paul B., and Johnson, Roswell H. _Applied Eugenics._ Chap. ix, "The Dysgenic Classes," pp. 176-83. New York, 1918.

(9) Pintner, Rudolph, and Toops, Herbert A. "Mental Test of Unemployed Men," _Journal of Applied Psychology_, I (1917), 325-41; II (1918), 15-25.

(10) Oliver, Thomas. _Dangerous Trades._ The historical, social, and legal aspects of industrial occupations affecting health, by a number of experts. New York, 1902.

(11) Jarrett, Mary C. "The Psychopathic Employee: a Problem of Industry," _Bulletin of the Massachusetts Commission on Mental Diseases_, I (1917-18), Nos. 3-4, 223-38. Boston, 1918.

(12) Thompson, W. Gilman. _The Occupational Diseases._ Their causation, treatment, and prevention. New York, 1914.

(13) Kober, George M., and Hanson, William C., editors. _Diseases of Occupation and Vocational Hygiene._ Philadelphia, 1916.

(14) Great Britain. Ministry of Munitions. _Health of Munition Workers Committee._ Hours, fatigue, and health in British munition factories. Reprints of the memoranda of the British Health of Munition Workers Committee, April, 1917. Washington, 1917.

(15) Great Britain Home Department. _Report of the Committee on Compensation for Industrial Diseases._ London, 1907.

(16) McMurtrie, Douglas C. _The Disabled Soldier._ With an introduction by Jeremiah Milbank. New York, 1919.

(17) Rubinow, I. M. "A Statistical Consideration of the Number of Men Crippled in War and Disabled in Industry," _Publication of Red Cross Institute for Crippled and Disabled Men_. Series I, No. 4, Feb. 14, 1918.

(18) Love, Albert G., and Davenport, C. B. _Defects Found in Drafted Men._ Statistical information compiled from the draft records showing the physical condition of the men registered and examined in pursuance of the requirements of the selective-service act. War Department, U.S. Surgeon General's Office, Washington, 1920.

D. _Alcoholism and Drug Addiction_

(1) Partridge, George E. _Studies in the Psychology of Intemperance._ New York, 1912.

(2) Kelynack, T. N. _The Drink Problem of Today in Its Medicosociological Aspects._ New York, 1916.

(3) Kerr, Norman S. _Inebriety or Narcomania._ Its etiology, pathology, treatment, and jurisprudence. 3d ed. London, 1894.

(4) Elderton, Ethel M. "A First Study of the Influence of Parental Alcoholism on the Physique and Ability of the Offspring." _Eugenics Laboratory Memoirs_, University of London, Francis Galton Laboratory for National Eugenics. London, 1910.

(5) Koren, John. _Economic Aspects of the Liquor Problem._ An investigation made for the Committee of Fifty under the direction of Henry W. Farnam. Boston, 1899.

(6) Towns, Charles B. _Habits that Handicap._ The menace of opium, alcohol, and tobacco, and the remedy. New York, 1916.

(7) Wilbert, Martin I. "The Number and Kind of Drug Addicts," _U.S. Public Health Reprint_, No. 294. Washington, 1915.

(8) Rowntree, B. Seebohm. _Land and Labour: Lessons from Belgium._ Chap. xxvi, "The Drink Problem." London, 1910.

(9) McIver, J., and Price, G. F. "Drug Addiction," _Journal of the American Medical Association_, LXVI (1915), 476-80. [A study of 147 cases.]

(10) Stanley, L. L. "Drug Addictions," _Journal of the American Institute of Criminal Law and Criminology_, X (1919), 62-70. [Four case studies.]

E. _Crime and Competition_

(1) Parmelee, Maurice. _Criminology._ Chap. vi, pp. 67-91. New York, 1918.

(2) Bonger, William A. _Criminality and Economic Conditions._ Translated from the French by H. P. Horton, with editorial preface by Edward Lindsey and with an introduction by Frank H. Norcross. Boston, 1916.

(3) Tarde, G. "La Criminalité et les phénomènes économiques," _Archives d'anthropologie criminelle_, XVI (1901), 565-75.

(4) Van Kan, J. _Les Causes économiques de la criminalité._ Étude historique et critique d'étiologie criminelle. Lyon, 1903.

(5) Fornasári di Verce, E. _La Criminalità e le vicende economiche d'Italia, dal 1873 al 1890, con prefazione di Ces. Lombroso._ Torino, 1894.

(6) Devon, J. _The Criminal and the Community._ London and New York, 1912.

(7) Breckinridge, Sophonisba, and Abbott, Edith. _The Delinquent Child and the Home._ Chap. iv, "The Poor Child: The Problem of Poverty," pp. 70-89. New York, 1912.

(8) Donovan, Frances. _The Woman Who Waits._ Boston, 1920.

(9) Fernald, Mabel R., Hayes, Mary H. S., and Dawley, Almena. _A Study of Women Delinquents in New York State._ With statistical chapter by Beardsley Ruml; preface by Katharine Bement Davis. Chap. xi, "Occupational History and Economic Efficiency," pp. 304-79. New York, 1920.

(10) Miner, Maude. _The Slavery of Prostitution._ A plea for emancipation. Chap. iii, "Social Factors Leading to Prostitution," pp. 53-88. New York, 1916.

(11) Ryckère, Raymond de. _La Servante criminelle._ Étude de criminologie professionelle. Paris, 1908.

TOPICS FOR WRITTEN THEMES

1. The Struggle for Existence and the Survival of the Fittest.

2. Economic Competition and the Economic Equilibrium.

3. "Unfair" Competition and Social Control.

4. Competition versus Sentiment.

5. The History of the Market, the Exchange, the Board of Trade.

6. The Natural History of the Laissez-Faire Theory in Economics and Politics.

7. Competition, Money, and Freedom.

8. Competition and Segregation in Industry and in Society.

9. The Neo-Malthusian Movement and Race Suicide.

10. The Economic Order of Competition and "the Inner Enemies."

11. The History of the English Poor Law.

12. Unemployment and Poverty in a Competitive, Secondary Society.

13. Modern Economy and the Psychology of Intemperance.

14. Modern Industry, the Physically Handicapped and Programs of Rehabilitation.

15. Crime in Relation to Economic Conditions.

16. Methods of Social Amelioration: Philanthropy, Welfare Work in Industry, Social Insurance, etc.

17. Experiments in the Limitation of Competition: Collective Bargaining, Trade Associations, Trade Boards, etc.

QUESTIONS FOR DISCUSSION

1. In what fields did the popular conceptions of competition originate?

2. In what way does competition as a form of interaction differ from conflict, accommodation, and assimilation?

3. What do you understand to be the difference between struggle, conflict, competition, and rivalry?

4. What are the different forms of the struggle for existence?

5. In what different meanings do you understand Darwin to use the term "the struggle for existence"? How many of these are applicable to human society?

6. What do you understand Darwin to mean when he says: "The structure of every organic being is related, in the most essential yet often hidden manner, to that of all the other organic beings with which it comes into competition for food or residence, or from which it has to escape, or on which it preys"? Does his principle, in your opinion, also apply to the structure of social groups?

7. What examples of competition occur to you in human or social relations? In what respects are they (a) alike, (b) different, from competition in plant communities?

8. To what extent is biological competition present in modern human society?

9. Does competition always lead to increased specialization and higher organization?

10. What evidences are there in society of the effect of competition upon specialization and organization?

11. What do you understand Crile to mean by the sentence: "In every case the fate of each creature seems to have been staked upon one mechanism"? What is this mechanism with man?

12. Do you think that Crile has given an adequate explanation of the evolution of mind?

13. Is there a difference in the character of the struggle for existence of animals and of man?

14. What is the difference in competition within a community based on likenesses and one based on diversities?

15. Compare the ecological concept "reaction" with the sociological conception "control."

16. What do you understand by the expression "the reaction of a community is usually more than the sum of the reaction of the component species and individuals"? Explain.

17. How far can the terms migration, ecesis, and competition, as used by Clements in his analysis of the invasion of one plant community by another, be used in the analysis of the process by which immigrants "invade" this country, i.e., migrate, settle, and are assimilated, "Americanized"?

18. What are the social forces involved in (a) internal, (b) foreign, migrations?

19. What do you understand by the term segregation? To what extent are the social forces making for segregation (a) economic, (b) sentimental? Illustrate.

20. In what ways has immigration to the United States resulted in segregation?

21. Does the segregation of the immigrant in our American cities make for or against (a) competition, (b) conflict, (c) social control, (d) accommodation, and (e) assimilation?

22. What are the factors producing internal migration in the United States?

23. In what sense is the drift to the cities a result of competition?

24. What is Ripley's conclusion in regard to urban selection and the ethnic composition of cities?

25. What are the outstanding results of demographic segregation and social selection in the United States?

26. What, in your judgment, are the chief characteristics of inter-racial competition?

27. To what extent do you agree with Walker's analysis of the social forces involved in race suicide in the United States?

28. In what specific ways is competition now a factor in race suicide?

29. What will be the future effects of inter-racial competition upon the ethnic stock of the American people?

30. "There is a sense in which much of the orthodox system of political economy is eternally true." Explain.

31. To what extent and in what sense is economic competition unconscious?

32. What differences other than innate mental ability enter into competition between different social groups and different persons?

33. Who are your competitors?

34. Of the existence (as identified persons) of what proportion of these competitors are you unconscious?

35. What is meant by competitive co-operation? Illustrate. (See pp. 508, 558.)

36. What do you understand by the term "economic equilibrium"?

37. Is "economic equilibrium" identical with "social solidarity"? What is the relation, if any, between the two concepts?

38. To what extent does competition make for a natural harmony of individual interests?

39. What did Adam Smith mean by "an invisible hand"?

40. "Civilization is the resultant not of conscious co-operation but of the unconscious competition of individuals." Do you agree or disagree with this statement?

41. "By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it." What is the argument for and against this position?

42. Why has the laissez-faire theory in economics been largely abandoned?

43. What do you understand by the term "freedom"? How far may freedom be identified with freedom of competition?

44. Do you accept the conception of Bastiat that "competition is liberty"?

45. How does money make for freedom? Does it make for or against co-operation? Are co-operation and competition mutually antagonistic terms?

46. Under what circumstances do you have competition between individuals and competition between groups?

47. What do you understand by the statement that anarchism, socialism, and communism are based upon the ecological conceptions of society?

48. What is the difference between an opinion or a doctrine taken (a) as a datum, and (b) as a value?

49. From what point of view may the dependent, the delinquent, and the defective be regarded as "inner enemies"? Is this notion individualistic, socialistic, or how would you characterize it?

FOOTNOTES:

[180] Bastiat, Frédéric, _Oeuvres complètes_, tome VI, "Harmonies économiques," 9e édition, p. 381. (Paris, 1884.)

[181] Walker, Francis A., _Political Economy_, p. 92. (New York, 1887.)

[182] See chap. i, pp. 51-54.

[183] The introduction of the rabbit into Australia, where predatory competitors are absent, has resulted in so great a multiplication of the members of this species that their numbers have become an economic menace. The appearance of the boll weevil, an insect which attacks the cotton boll, has materially changed the character of agriculture in areas of cotton culture in the South. Scientists are now looking for some insect enemy of the boll weevil that will restore the equilibrium.

[184] Adapted from J. Arthur Thomson, _Darwinism and Human Life_, pp. 72-75. (Henry Holt & Co., 1910.)

[185] Adapted from Charles Darwin, _The Origin of Species_, pp. 50-61. (D. Appleton & Co., 1878.)

[186] Adapted from Charles Darwin, _The Origin of Species_, pp. 97-100. (D. Appleton & Co., 1878.)

[187] Adapted from George W. Crile, _Man: An Adaptive Mechanism_, pp. 17-39. (Published by The Macmillan Co., 1916. Reprinted by permission.)

[188] Adapted from F. E. Clements, _Plant Succession_. An analysis of the development of vegetation, pp. 75-79. (Carnegie Institution of Washington, 1916.)

[189] Adapted from Carl Bücher, _Industrial Evolution_, pp. 345-69. (Henry Holt & Co., 1907.)

[190] From William Z. Ripley, _The Races of Europe_, pp. 537-59. (D. Appleton & Co., 1899.)

[191] Adapted from Francis A. Walker, _Economics and Statistics_, II, 421-26. (Henry Holt & Co., 1899.)

[192] Adapted from John B. Clark, "The Limits of Competition," in Clark and Giddings, _The Modern Distributive Process_, pp. 2-8. (Ginn & Co., 1888.)

[193] Adapted from Adam Smith, _An Inquiry into the Nature and Causes of the Wealth of Nations_, I (1904), 419, 421. (By kind permission of Messrs. Methuen & Co., Ltd.)

[194] Translated from Frédéric Bastiat, _Oeuvres complètes_, tome VI, "Harmonies économiques," 9e édition, p. 350. (Paris, 1884.)

[195] Translated from Georg Simmel, _Philosophie des Geldes_, pp. 351-52. (Duncker und Humblot, 1900.)

[196] Henry S. Maine, _Village-Communities in the East and West_, pp. 192-97. (New York, 1889.)

[197] Henry Higgs, _The Physiocrats_, p. 142. (London, 1897.)

[198] Adam Smith, _Wealth of Nations_ (Cannan's edition), I, 342. London, 1904.

[199] _Ibid._ I, 148.

[200] Thomas Mackay, _A Plea for Liberty_. An argument against socialism and socialistic legislation, consisting of an introduction by Herbert Spencer and essays by various writers, p. 24. (New York, 1891.)

[201] _Lectures on the Relation between Law and Opinion in England, during the Nineteenth Century._ 2d ed. (London, 1914).

[202] _The Principles of Taxation._ Everyman's Library. Preface by F. W. Kolthamer, p. xii.

[203] _Soziologie_, p. 686. (Leipzig, 1908.)

[204] John Stuart Mill, _On Liberty_. (London, 1859.)

[205] _Criminality and Economic Conditions._ (Boston, 1916.)