2 22 Struggle for Existence and Rivalry 



competition ; and (2) competition of agencies, either indi- 

 viduals or organizations, which we may call 'restricted' 

 competition. This distinction is essential, for it indicates 

 two types of competitive activity. 



{a) Free competition, considered as a] type operative in 

 industrial and commercial affairs, leaves to the individual, 

 in his attempt to succeed, freedom of enterprise, initiative, 

 and method of operation. It is, therefore, psychologically 

 motived, and rests directly upon the individual's capacity, 

 temperament, and social feeling. The economic motive 

 is tempered and modified by the individual's character, 

 and varies all the way from pure egoism or love of gain 

 to the most humane and social concern for others' welfare 

 and success. It appears, therefore, that in free competi- 

 tion we have in operation the factors involved in personal 

 rivalry, but directed to an economic end. This end in 

 view gives to the agencies of production, trade, etc., a 

 certain real aloofness which appears inhuman, and is 

 often made the excuse for what is really so ; but yet 

 industrial organization, in which free competition is the 

 dominant form, is a mode of social organization in which 

 the factors involved are those essential to the maintenance 

 of social life, and consistent with its other and more al- 

 truistic modes. Hence the growth, within the ordinary 

 machinery of industrial economics, of various purely social 

 and ethical features — humane labour laws, hygienic sur- 

 roundings, libraries and reading-rooms, baths, lecture 

 courses, lyceums, etc., not only permitted but provided by 

 employers, together with such more intrinsic arrangements 

 as profit-sharing, increasing wage, pensions, labour insur- 

 ance, etc. In essentials, therefore, this form of competition 

 docs not merely represent but is personal rivalry inside 



