52 W. G. Lanpworthy Taylor 



in other words, as a juro-economic value; and he is free to deter- 

 mine that value-right toward what fellows he chooses, entirely 

 free from prejudice due to the material form of the antecedent 

 technical process, from which the value-right emerged. 



The collection of values in the hands of financial institutions 

 and financiers is evidently a purely psychic operation. It takes 

 place in several degrees just as the specialization of brute matter 

 into goods takes place in several degrees. The existence of finan- 

 cial leaders is an instance of the leadership that must take place 

 in every category of social life. The direction of the generalized 

 and accumulated rights to a special, perhaps altogether newly 

 introduced, or newly discovered industry is the arch-impetus and 

 stimulus of all industrial life. It is that case of "one-sided" 

 purchase the mystery of which so awes and terrifies the popular 

 mind. Really it is but a return-current of stimulus, passing back 

 from the psycho-industrial groups to the materio-industrial 

 groups. The stimulus of industry may thus be classified into (a) 

 the reactions between the members of the materialistic group, 

 (b) those between the members of the psychic group, and (c) 

 those between the two groups. 



It is unquestionable that the element of stimulus is a mani- 

 festation in the kinetics of industry that imperatively demands 

 explanation. No process can exist without impulse, incentive, 

 suggestion, stimulus. Not only are certain phenomena contem- 

 poraneous, on the theory of equilibrium, but they are contempo- 

 raneously in motion, on the theory of stimulus. It is like the 

 steam-engine driving the looms of a factory: the forces of the 

 motor and the resistance of the machines and materials are in 

 equilibrium except that there is a slight excess of power in the 

 motor, which causes the different apparatus to move in the order 

 prescribed by the conjuncture, the motion being communicated 

 from one machine to another. 



A distinction has now to be made which at once obviates a 

 misapprehension and shows the true relation of the process of 

 stimulation to the 'whole kinetic system. The. analogies of elec- 

 tricity and steam represent the stimulus as originally generated 

 in the crust of the earth and as ultimately returning back to the 



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