cts should be approved which
promised a return of 6 per cent, or whatever it might be. Even in
deciding what it should be, the limits of your choice would be
narrowly confined. If, for instance, you fixed on 1 or 2 per cent,
you would probably discover that you had not achieved your object,
that the undertakings for distant returns which passed this test,
still consumed far more resources than you could spare. You would be
compelled then to raise the rate until it had cut these enterprises
down within manageable limits. But, once more, what essentially would
you be doing? You would be using the instrument of the rate of
interest to adjust the demand for and supply of capital, though indeed
the interest might not be paid away as now to private individuals. You
would be reproducing by the method of deliberate trial and error, the
adjustments which occur automatically as things are, in the actual
world. Once again the most perfectly contrived Utopia would be
compelled to pay to the unorganized cooeperation of our epoch the
sincerest flattery of imitation.

Sec.6. _The Fundamental Character of many Economic Laws_. But again
perhaps a word of warning may be desirable. There is much controversy
in these days about something called "Capitalism" or "The capitalist
system." When these words are used with any precision, they usually
refer to the arrangement so prevalent at present, whereby the
ownership and sole ultimate control of a business rests with those who
hold its stocks and shares. There is much to be said upon the merits
and demerits of this system; something will perhaps be said upon the
matter in the fifth volume of this series; but I shall not discuss it
here. Nothing that I have said so far has any real bearing on it
whatsoever; to suppose that it has, is indeed to miss the whole point
of this chapter.

The order, which I have sought to reveal, pervading and moving the
most diverse phenomena of the economic world, would be a far less
noteworthy and impressive thing were it merely the peculiar product of
capitalism. Merchant adventurers, companies, and trusts; Guilds,
Governments and Soviets may come and go. But under them all, and, if
need be, in spite of them all, the profound adjustments of supply and
demand will work themselves out and work themselves out again for so
long as the lot of man is darkened by the curse of Adam.

CHAPTER II

THE GENERAL LAWS OF SUPPLY AND DEMAND

Sec.1. _Preliminary Sta