the
example trade unionism must set before it can expect willing acceptance
as a fundamental industrial institution. Unless the union movement
proves itself intelligent, disciplined, and aware of ethical
considerations, a continuance of industrial conflict will be inevitable;
for any practicable policy of wage settlement for industrial peace will
require union participation.

4.--Let us pass now to the economic position of "capital" (the owners of
capital) in the industrial order which uses it (of which they are a
part). In a society where labor works upon the gifts of nature almost
unaided by instruments invented by man and fashioned by previous human
labor, the society must content itself with small numbers or little
product or both. Modern industry has been shaped, perhaps predominantly,
by the effort to support large numbers at a high standard of economic
existence. Production has become greatly subdivided among specialized
groups. In industry to-day, the wage earners of various kinds perform
their tasks with the assistance of such equipment, machinery, and
general organization as will serve to make their labor result in a large
product. The means which make possible this effective employment of
labor in industry are what we mean by the term "capital."[9] The section
of the community which owns and directs the investment of the bulk of
these means has received the name of capitalists.

Almost all the capital accumulated within the United States is
privately owned. Since the beginning of our industrial history the
opportunities for accumulation have been left to individuals and the
capital which industry has used has been provided by private owners. We
have depended upon the personal motives of individuals to persuade them
to refrain from the immediate consumption of some part of the product of
industry which has come into their possession, and to lead them to put
their savings at the further command of industry.

The circumstances which have governed the course and direction of this
accumulation, and the question of the amount of economic cost that it
involved have been the subjects of much capable exposition and of very
violent differences. Much accumulation has resulted from the fact that
industrial or rent incomes have been at certain times distinct surpluses
over the possible consumption of the individuals in receipt of them.
Much has been prompted and maintained by the efforts of men to move
ahead to succe