[115] Cf. Frederic Barnard Hawley, Enterprise and the Productive Process, for an extreme, mature and consistent development of this tenet.
[116] See The Theory of Business Enterprise, ch. iv, vi, vii, for a more detailed discussion of this business traffic and the working principles which govern it. See also H. J. Davenport, The Economics of Enterprise (New York, 1913).
[117] Cf., e. g., Ehrenberg, Das Zeitalter der Fugger; Sombart, Der Moderne Kapitalismus, bk. i.
[118] Cf. The Theory of the Leisure Class, ch. iv, v, vi.
[119] Cf. Harrington Emerson, Efficiency as a Basis for Operation and Wages.
[120] Cf., e. g., Karl Bücher, Die Entstehung der Volkswirtschaft, (3d ed.), ch. iv, “Die gewerblichen Betriebssysteme,” ch. v. “Der Niedergang des Handwerks;” W. J. Ashley, English Economic History and Theory, part ii, ch. i, sec. 25, ch. iii, especially sec. 44; W. Cunningham, The Growth of English Industry and Commerce, vol. ii, Introduction; Werner Sombart, Der Moderne Kapitalismus, bk. i, especially ch. iv-xii.
[121] To complete the sketch at this point, even in outline, it would be necessary to go extensively into the relations of ownership and control (largely indirect) in which the owners of land and natural resources, the Landed Interest, had stood to the industrial community of craftsmen before this transition to the business era got under way, as also into the further mutual relations subsisting between the landed interest, the craftsmen and the business community during this transition to a business régime. In the most summary terms the pertinent circumstances appear to have been that from the beginning of its technological era the handicraft community, with its workmanship and its technological attainments, was in an uncertain measure at the discretionary call of the landed interest, largely in an impersonal way through channels of trade and on the whole with decreasingly exacting effect as time went on; and the industrial community at large had by no means emancipated themselves from this control when the era of business enterprise set in; for the landed interest continued to draw its livelihood from the mixed agricultural and handicraft community, and the products of handicraft still continued to go chiefly as supplies to the landed interest in return for the means of subsistence controlled by the latter; and long after the businessmen had taken over the direction of industry the claims of the landed interest still continued paramount in the economic situation, and industry still continued to be carried on largely with a view to meeting the requirements of the landed interest.
[122] “Handwerk (im engeren Sinne) ist diejenige Wirtschaftsform, die hervorwächst aus dem streben eines gewerblichen Arbeiters seine zwischen Kunst und gewöhnlicher Handarbeit die Mitte haltende Fertigkeit zur Herrichtung oder Bearbeitung gewerblicher Gebrauchsgegenstände in der Weise zu vertreten, dass er sich durch Austausch seiner Leistungen oder Erzeugnisse gegen entsprechende Äquivalente seinen Lebensunterhalt verschafft.”—Sombart, Moderne Kapitalismus, bk. i, ch. iv.
[123] Cf. Sombart, Der Moderne Kapitalismus, bk. i; W. J. Ashley, English Economic History and Theory, bk. i, especially ch. iii; Karl Bücher, die Entstehung der Volkswirtschaft, ch. iv, v.
[124] A classic passage of Adam Smith shows this handicraft conception of the mechanics of industry: “The annual labour of every nation is the fund which originally supplies it with all the necessaries and conveniencies of life which it annually consumes....” “But this proportion [of the produce to the consumers] must in every nation be regulated by two different circumstances; first, by the skill, dexterity, and judgment with which its labour is generally applied; and, secondly, by the proportion between the number of those who are employed in useful labour, and that of those who are not so employed.”—Wealth of Nations, Introduction, p. 1.