The Kinetic Theory of Economic Crises 53 



earth-source and restimulating it by a reflex action. The theory 

 of successive environments or conjunctures, however, represents 

 the crust of the earth and the psychic conjuncture, also, as purely 

 passive, as simply absorbing or eliminating all uneconomic mo- 

 tion. Thus, at first glance, it may look as though the theory of 

 environments excluded motion (except as incident to absorption) 

 from the environment, while the theory of stimuli places the origin 

 of a peculiar kind of motion, that of stimulus, within the environ- 

 ment. The careful reader, however, will have noticed that the 

 process of differential progress includes both materialistic and 

 psychic elements appropriate to motion in the stage of advance- 

 ment corresponding to the environment in which industry finds 

 itself. While motion is psychic in that it is an attempt to over- 

 come and thus escape the materialistic conditions of time and 

 space, it is impossible except within a relatively material environ- 

 ment. It is natural, therefore, that impulse for industry should 

 originate in the relatively materialistic environment. 



It will be urged, however, that progress is due to the endeavor 

 of the individual or of society to pass into a higher environment, 

 and that therefore it is essentially a psychic matter. Conse- 

 quently the impulse to progress should arise close to or at the 

 margin of the subjective environment or within the purely finan- 

 cial classes. It is they that gather the surpluses, that select the 

 investments, that calculate carefully and with infinite pains the 

 proper direction of industry. In other words, it is they that 

 explore the path of progress, that visualize the new environment, 

 that catch glimpses of the promised land, while the more mate- 

 rialistic workers are pursuing a sodden routine. Is it not among 

 them that all impulse to progress must arise ? 



In answer it must be admitted and even insisted that the finan- 

 ciers are in the vanguard of progress. But this is inaccurate 

 language, not placing them scientifically in our system. The real 

 classification of the financiers will be understood by observing 

 the psychological distinction between the mind and the brain. 

 The mind is to be thought of as having an existence unreachable 

 by the senses, and is inconceivable as disposing of physical force. 

 The brain, however, is that psycho-physical organism that con- 



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