It need hardly be pointed out that in the economic life we find situations exactly corresponding to those of "conscience and temptation" and mechanical "pull and haul" which were discriminated in the ethical sphere and marked off from judgment properly so called. Indeed it seems reasonable to think, on general grounds of introspection, that these methods of decision (if they deserve the name) are, relatively speaking, more frequently relied upon in the economic than in the moral life. The economic method of true judgment is roundabout and more complex and more difficult than ethical, and involves a more express recourse to those abstract conceptions which for the most part are only implicitly involved in valuation of the other type. The economic type of valuation, in fact, differs from the ethical, not in an absolute or essential way, but rather in the explicitness with which it brings to light and lays bare the vital elements in valuation as such. In general, then, the economic process would seem necessarily to embrace three stages, which will first of all be enumerated and then very briefly explained and discussed. These are: (1) a preliminary consideration of the means necessary to attain the end—which must be vague and tentative, of course, for the reason that the end as imagined is so, as compared with the fulness of detail which must belong to it before it can be finally accepted; (2) a consideration of the means, as thus provisionally taken, in the light of their present devotion to other purposes, this present devotion of them being the outcome, in some degree at least, of past valuation; (3) final definition of the means with reference to the proposed use through an adjustment effected between this and the factors involved in the past valuation.

1. In the first stage as throughout, it must be carefully noted, the means are under consideration not primarily in their physical aspect, but simply as subject to a possible redisposition. Thus it is not money as lawful currency receivable at the steamship office for an ocean passage, nor tools and materials and labor-power technically suitable for the production of a desired object, that is the subject of the economic judgment. The problem of redisposition would of course not be raised were the means not technically adaptable to the purpose, nor on the other hand can the means in the course of economic judgment, as a rule, escape some measure of further (factual) inquiry into their technical properties; but the standpoints are nevertheless distinct. Again, it must be noted that the means in this first stage will be only roughly measured. The length of one's stay abroad, the size of the house one wishes to build, the purpose whatever it may be, is still undefined—these are in fact the very matters which the process must determine—and in the first instance it is "money in general" or "a large sum of money" with reference to which we raise the economic problem. The category of quantity is in fact essentially an economic one; it is essentially a standpoint for determining the means of action in such a way as to facilitate their economic valuation. The reader familiar with the writings of the Austrian school of economists will easily recall how uniformly in their discussions of the principle of marginal utility these writers assume outright in the first place the division of the stock of goods into definite units, and then raise the question of how the value of a unit is measured. The stock contains already a hundred bushels of wheat or ten loaves of bread—apparently as a matter of metaphysical necessity—whereas in fact the essential economic problem is this very one of how "wheat at large" comes to be put in sacks of a certain size and "bread in general" to be baked in twelve-ounce loaves. The subdivision of the stock and the valuation of the unit are not successive stages, but inseparably correlative phases of the valuation-process as a whole. The outcome may be stated either way, in accordance with one's interest in the situation.

2. But the unmeasured means as redisposable in an as yet undetermined way bring to consciousness established measured uses to which the means have been heretofore assigned in definite amounts. In this way the process of determining a definite quantum as redisposable (which is to say, of attaining to a definite acceptable plan of conduct) can begin. How, then, does this fact of past assignment to uses still recognized as desirable figure in the situation? In the first place the past assignment may have been (1) an outcome of past economic valuation, (2) an unhesitating or non-economic act executive of an ethical decision, or (3) an act of more or less conscious obedience to "conscience" or "authority." In either case it now stands as a course of conduct which at the time was, in the way explained above, sanctioned to the agent, to the "energetic" self, by the means and conditions recognized as bearing upon it. In this sense, then, we have, in this recognition of the past adjustment and of the economic character which the means now have in virtue of it, what we may term a judgment of "energy-equivalence" between the means and their established uses. For to the agent it was the essential meaning of the sense of sanction felt when the means were assigned to these uses that the "energetic" self would on the whole be furthered thereby—and this in view of all the sacrifices that this use would entail, or in view of the sacrifices required for the production of the means, if the case were one in which the means were not at hand and could only be secured by a more or less extended production process.

In the illustration we have been considering, it will be observed, there is an extensive schedule of present uses which the new project calls in question and from which the means must be diverted. This is in fact the commoner case. A new use of money will affect, as a rule, not simply a single present mode of expenditure, but will very probably involve a readjustment throughout the whole schedule of expenditure which our separate past valuations of money have in effect co-operated in establishing. So likewise if we wish to use part of a store of building materials or of food, or of any other subdivisible commodity, we encounter an ordered system of consumption rather than a single predetermined use which we have not yet enjoyed. Where this is the case the whole process of valuation is greatly facilitated, but this is not essential. The means in cases of true economic valuation may be capable of but a single use, like a railroad ticket or a perishable piece of fruit, or of a virtually endless series of uses, like a painting or a literary masterpiece. Whether the means figure as representing but a single use or stand for the conservation of an extensive system, their economic significance is the same. They are the "energy-equivalent" of this use or system of uses considered as an act or system of acts of consumption in furtherance of the self. Their past assignment meant then and means now simply this, that the "energetic" self would thereby gain more than it would lose through the inevitable sacrifices. This is the economic significance of the means in virtue of which they are now problematic to the extent of checking, for a time at least, forward tendency toward the desired end.[146]

3. The judgment of energy-equivalence, then, defines the inhibiting economic aspect of the means, and moreover defines it for the means as subdivided and set apart for a schedule of uses if this was the form of the past adjustments to which reference is made. The problem of the third stage of the process is that of "bringing subject and predicate together," as we have elsewhere expressed it—that is, of determining, in the light of the economic character of the means as just ascertained, what measure of satisfaction, if any, may be accorded to the new and as yet undefined desire. The new disposition of the means, if one is to be made, must bring to the "energetic" self a degree of furtherance and development which shall be sensibly as great as would come from the established method of consumption. The means, as economic, are means to the conservation of the old adjustment, and any new disposal of them or of any portion of them for a full or partial execution of the new purpose must make out at least as good a case. It must appear that the new disposition is not only physically possible, but also economically necessary in the light of the same principle of expansion of the self as sanctioned the disposition now in force. It must make the self in some way more efficient—whether more strong and symmetrical in body, more skilled in work, more clear of brain, or more efficient in whatever other concrete way may be desired.

Psychologically the sanction of any course of action which is taken as evidence of conformity to the general rule thus inadequately stated is the more or less strong sense of "relaxation" of attentive strain which comes with the shift of attention, in the final survey, from means to end. We may accordingly, for the sake of greater definiteness, restate in the following terms the process which has just been sketched: The ends in conflict at the outset are ends which do not sensibly bear upon each other through their dependence upon a common fund of psychical capacities or energies. They are related in the agent's experience solely through their dependence upon a common stock of physical means, and they do not therefore admit of adjustment through the ethical type of process. The economic process consists essentially of a revival in imagination of the experiences accompanying the former disposition of the means and a re-enforcement by these of the means in their adherence to that former and still recognized disposition. If an adapted form of the new end can be imagined which will mediate a like experience of relaxation when the attention shifts from the means, thus emotionally re-enforced in their economic status, to the end as thus conceived, the means will be recognized as economically redisposable. Thus the method of valuation of the means makes possible, through appeal to the sensibly invariable experience of relaxation or assurance in the outcome of judgment, a co-ordination of disparate ends which the ethical method of direct adjustment could not effect.[147]

The economic process thus presents on analysis the same factors as does the ethical. On the subject side we have the means—which as economic are problematic as to their reapplicability. On the predicate side we have the suggested mode of reapplication in tension against conservative ideals of application to established purposes. Just as it may be held that the general ethical predicate is that of Right or Good—that is, deserving of adoption into the system of one's ends—so the economic predicate applied to the means as these come in the end to be defined is the general concept Reappliable. And in general the distinction of the types is not an ultimate one, for the more deliberately and rigorously the method of economic valuation is pursued—in such a case, for example, as that of the prospective emigrant—the stronger will be the agent's sense of a genuinely ethical sanction as belonging to the decision which is in the end worked out. The more certain and sincere, therefore, will be the agent's judgment that the means must be reapplied, for on the sense of sanction of which we speak rests the explicit judgment that the purpose formed is expansive of the self.

From the analysis thus presented it must appear, therefore, that the economic type of judgment is in our sense a constructive process. Its function is to determine a particular commodity or portion of a stock of some commodity in its economic character as disposable, and in performing this function it presents a definite reality in the economic order. Moreover, in thus defining the particular, recourse is had to more or less distinctively namable economic standards which are in the last resort symbols representing established habits of consumption in the light of which the means, prima facie, seem not to be available for any other purposes. These economic standards, like ethical standards and the class concepts of science and our ordinary perceptual experience, are, with all due respect to nominalism, constitutive of a real world—a world which is real because it lends form and significance to our knowledge of particulars as stimuli to conduct.

We have now before us sufficient reason for our thesis that the valuation-process in both its forms is constructive of an order of reality, and we have sufficiently explained the relation which the economic order bears to the inclusive and logically prior order of ethical objects and relations. We are now in a position to see that in being thus constructive of reality (taking the conception in its proper functional meaning) they are at the same time constructive of the self, since the reality which they construct is in its functional aspect the assemblage of means and conditions, of stimuli, in short, for the development and expansion of the self. We shall bring this main division of our study to a close with a series of remarks in explanation and illustration of this view.

Let us consider once more the factors present in the agent's final survey of the situation after the completion of the judgment-process and on the verge of action. These factors are, as we have seen, (1) recognition of conditions sanctioning the purpose formed, (2) recognition of the purpose as, in view of this sanction, warranted to the "energetic" self as an eligible method of expansion and development, and (3) recognition of the "energetic" self, conversely, as in possession, in virtue of the favorable conditions given in factual judgment, of this new method of furtherance. These three factors are manifestly not so much factors co-operating in the situation as inseparable aspects of it distinguishable from each other and admitting of discriminative emphasis in accordance with the degree of reflective power which the individual may possess or choose to exercise. Strictly speaking these three aspects are present in every conscious recognition of a purpose as one's own and as presently to be carried into effect, but they are not always present in equal conspicuousness, and never with equal logical importance for the individual. In fact this enumeration of aspects coincides with our enumeration of the three stages in the evolution of the individual's conscious moral attitude toward new purposes given in impulse—in the third of which the last named of these aspects comes to the fore with the others in logical or functional subordination to it.