Illustrativeinstanceswillreadilysuggestthemselves。Manyabusinessmanturnsbypreferencetosomethinglessdubiousthanthedistillingofwhiskeyorthesaleofdeleterioushouseholdremedies。Theyprefernottousedeletriousadulterants，evenwithinthelimitsofthelaw。Theywillratherusewoolthanshoddyatthesameprice。Theofficialsofarailwaycommonlyprefertoavoidwrecksandmanslaughter，evenifthereisnopecuniaryadvantageinchoosingthemorehumanecourse。Morethanthat，itwillbefoundtruethatthemoreprosperousofthecraft，especially，takeprideandpainstomaketheserviceoftheirroadsortheoutputoftheirmillsasefficient，notsimplyasthepecuniaryadvantageoftheconcerndemands，butasthebestpecuniaryresultswilladmit。Instancesareperhapsnotfrequent，buttheyarealsonotaltogetherexceptional，whereaprosperouscaptainofindustrywillgooutofhiswaytoheightentheserviceabilityofhisindustryeventoadegreethatisofdoubtfulpecuniaryexpediencyforhimself。Suchaberrationsare，ofcourse，notlarge；andiftheyarepersistedintoanyveryappreciableextenttheresultis，ofcourse，disastroustotheenterprise。Theenterpriseinsuchacasefallsoutofthecategoryofbusinessmanagementandfallsundertheimputationofphilanthropy。
　　Thecaptainsofthefirstclassnecessari1yarerelativelyexemptfromtheseunbusinesslikescruples。
　　Theeconomicprincipleof“chargingwhatthetrafficwillbear“isdiscussedwithgreatcareandelaborationbyR。T。Ely，MonopoliesandTrusts，ch。III，“TheLawofMonopolyPrice。“Cf。，forillustrationofthepracticalworkingofthisprinciple，testimonyofC。M。Schwab，ReportoftheIndustrialCommission，vol。XIII。pp。453-455。
　　18。“Monopoly“ishereusedinthatloosersensewhichithascolloquially，notinthestrictsenseofanexclusivecontrolofthesupply，asemployed，eg。，byMrElyinthevolumecitedabove。ThisusageisthemoreexcusablesinceMr。Elyfindsthata“monopoly“inthestrictsenseofthedefinitionpracticallydoesnotoccurinfact。Cf。Jenks，TheTrustProblem，ch。IV。
　　E。g。theprestigevalueofIvorySoap。
　　Cf。W。D。Scott，TheTheoryofAdvertising；J。L。Mahin，TheCommercialValueofAdvertising，pp。4-6，12-13，15；E。
　　Fogg-Meade，“ThePlaceofAdvertisinginModernBusiness，“
　　JournalofPoliticalEconomy，March1901；Sombart，vol。II。ch。
　　Thewritinganddesigningofadvertisementsletterpress，display，andillustrationshasgrownintoadistinctcalling；sothattheworkofaskilledwriterofadvertisementscomparesnotunfavorably，inpointoflucrativeness，withthatoftheavowedwritersofpopularfiction。
　　Thepsychologicalprinciplesofadvertisingmaybeformulatedsomewhatasfollows:Adeclarationoffact，madeintheformandwiththeincidentsoftasteandexpressiontowhichapersonisaccustomed，willbeacceptedasauthenticandwillbeacteduponifoccasionarises，insofarasitdoesnotconflictwithopinionsalreadyaccepted。Theacceptanceofanopinionseemstobealmostentirelyapassivematter。Thepresumptionremainsinfavorofanopinionthathasoncebeenaccepted，andanappreciableburdenofprooffallsonthenegative。Acompetentformulationofopiniononagivenpointisthechieffactoringainingadherentstothatopinion，andareiterationofthestatementisthechieffactorincarryingconviction。Thetruthofsuchaformulationisamatterofsecondaryconsequence，butawideandpatentdeparturefromknownfactgenerallyweakensitspersuasiveeffect。Theaimoftheadvertiseristoarrestattentionandthenpresenthisstatementinsuchamannerthatitiseasilyassimilatedintothehabitsofthoughtofthepersonwhoseconvictionistobeinfluenced。Whenthisiseffectuallydoneareversaloftheconvictionsoestablishedisamatterofconsiderabledifficulty。Thetenacityofaviewonceacceptedinthiswayisevidenced，forinstance，bytheendlessnumberandvarietyoftestimonialstothemeritsofwell-advertisedbutnotoriouslyworthlesshouseholdremediesandthelike。
　　SoacuteanobserverasMrSombartisstillabletoholdtheopinionthat“aufSchwindelistdauerudnochnieeinUnternehmenbegrundetworden“Kopitalismus，vol。II。p。376。MrSombarthasnotmadeacquaintancewiththeadventuresofElijahtheRestorer，norisheconversantwithAmericanpatent-medicineenterprise。
　　WithMr。Sombart’sviewmaybecontrastedthatofMrL。F。Ward，anobserverofequallylargeoutlookandacumen:
　　“Thelawofmindasitoperatesinsocietyasanaidtocompetitionandintheinterestoftheindividualisessentiallyimmoral。Itrestsprimarilyontheprincipleofdeception。Itisanextensiontootherhumanbeingsofthemethodappliedtotheanimalworldbywhichthelatterwassubjectedtoman。Thismethodwasthatoftheambushandthesnare。Itsrulingprinciplewascunning。Itsobjectwastodeceive，circumvent，ensnare，andcapture。Lowanimalcunningwassucceededbymorerefinedkindsofcunning。Themoreimportantofthesegobythenamesofbusinessshrewdness，strategy，anddiplomacy，noneofwhichdifferfromordinarycunninginanythingbutthedegreeofadroitnessbywhichthevictimisoutwitted。Inthiswaysociallifeiscompletelyhoneycombedwithdeception。““ThePsychologicBasisofSocialEconomics，“Ann。ofAm。Acad。，
　　Advertisingandotherlikeexpedientsforthesaleofgoodsaimatchangesinthe“substitutionvalues“ofthegoodsinquestion，notatanenhancementoftheaggregateutilitiesoftheavailableoutputofgoods。
　　Cf。Jenks，TheTrustProblem，pp。21-28；ReportoftheIndustrialCommission，vol。
　　Cf。Bohm-Bawerk，PositiveTheoryofCapital，bk。onthevalueofalternativeandcomplementarygoods。
　　Wherecompetitivesellingmakesupalargeproportionoftheaggregatefinalcostofthemarketedproduct，thisfactislikelytoshowitselfinanexceptionallylargeproportionofgood-willinthecapitalizationoftheconcernsengagedinthegivenlineofbusiness；as，e。g。，theAmericanChicleCompany。
　　Cf。Ed。Hahn，DieWirtschaftderWeltamAusgangdesXIX
　　Jahrhunderts-“InunseremheutigenWirtsehaftslebenistderGewinndurchdenZuwachsderProduktion，mitdemfruhereJahrhunderterechneten，ganzundgarzuruckgedrangt，eristunwesentlichgeworden。“
　　Itmight，therefore，befeasibletosetupatheorytotheeffectthatwagesarecompetitivelyproportionedtothevendibilityoftheproduct；butthereisnocogentgroundforsayingthatthewagesinanydepartmentofindustry，underabusinessregime，areproportionedtotheutilitywhichtheoutputhastoanyoneelsethantheemployerwhosellsit。Whenitisfurthertakenintoaccountthatthevendibilityoftheproductinverymanylinesofproductiondependschieflyonthewastefulnessofthegoodscf。TheoryoftheLeisureClass，ch。V，thedivergencebetweentheusefulnessoftheworkandthewagespaidforitseemswideenoughtothrowthewholequestionofanequivalencebetweenworkandpayoutoftheoreticalconsideration。Cf。，however，Clark，TheDistributionofWealth，especiallych。VII。andXXII。
　　TheTheoryofBusinessEnterprisebyThorsteinVeblen1904
　　BusinessPrinciplesThephysicalbasisofmodernbusinesstrafficisthemachineprocess，asdescribedinChapterII。Itisessentiallyamodernfact，-lateandyetinitsearlystagesofgrowth，especiallyasregardsitswidersweepintheorganizationoftheindustrialsystem。Thespiritualgroundofbusinessenterprise，ontheotherhand，isgivenbytheinstitutionofownership。“Businessprinciples“arecorollariesunderthemainpropositionofownership；theyareprinciplesofproperty，-pecuniaryprinciples。Theseprinciplesareofolderdatethanthemachineindustry，althoughtheirfulldevelopmentbelongswithinthemachineera。Asthemachineprocessconditionsthegrowthandscopeofindustry，andasitsdisciplineinculcateshabitsofthoughtsuitabletotheindustrialtechnology，sotheexigenciesofownershipconditionthegrowthandaimsofbusiness，andthedisciplineofownershipanditsmanagementinculcatesviewsandprincipleshabitsofthoughtsuitabletotheworkofbusinesstraffic。
　　Thedisciplineofthemachineprocessenforcesastandardizationofconductandofknowledgeintermsofquantitativeprecision，andinculcatesahabitofapprehendingandexplainingfactsintermsofmaterialcauseandeffect。Itinvolvesavaluationoffacts，things，relations，andevenpersonalcapacity，intermsofforce。Itsmetaphysicsismaterialismanditspointofviewisthatofcausalsequence。1*
　　Suchahabitofmindconducestoindustrialefficiency，andthewideprevalenceofsuchahabitisindispensabletoahighdegreeofindustrialefficiencyundermodernconditions。Thishabitofmindprevailsmostwidelyandwithleastfalteringinthosecommunitiesthathaveachievedgreatthingsinthemachineindustry，beingbothacauseandaneffectofthemachineprocess。
　　Othernormsofstandardization，moreorlessalientothisone，andothergroundsforthevaluationoffacts，haveprevailedelsewhere，aswellasintheearlierphasesoftheWesternculture。Muchofthisolderstandardizationstillstandsover，invaryingdegreesofvigorordecay，inthatcurrentschemeofknowledgeandconductthatnowcharacterizestheWesternculture。
　　Manyoftheseancientnormsofthoughtwhichhavecomedownfromthedisciplineofremoteandrelativelyprimitivephasesoftheculturalpastarestillstrongintheaffectionsofmen，althoughmostofthemhavelostgreatlyintheirpowerofconstraint。Theynolongerbindmen’sconvictionsastheyoncedid。Theyarelosingtheiraxiomaticcharacter。Theyarenolongerself-evidentorself-legitimatingtomoderncommonsense，astheyonceweretothecommonsenseofanearliertime。
　　Theseancientnormsdifferfromthemodernnormsgivenbythemachineinthattheyrestonconventional，ultimatelysentimentalgrounds；theyareofaputativenature。Suchare，e。g。，theprinciplesofprimitivebloodrelationship，clansolidarity，paternaldescent，Leviticalcleanness，divineguidance，allegiance，nationality。Intheirtimeandunderthecircumstanceswhichfavoredtheirgrowththesewere，allandseveral，powerfulfactorsincontrollinghumanconductandshapingthecourseofevents。Intheirtimeeachoftheseinstitutionalnormsservedasadefinitivegroundofauthenticationforsuchfactsasfellunderitsparticularscope，andthescopeofeachwasverywideinthedayofitsbestvigor。
　　Astimehasbroughtchangeofcircumstances，thefactsoflifehavegraduallyescapedfromtheconstraintoftheseancientprinciples；sothatthedominionwhichtheynowholdoverthelifeofcivilizedmenisrelativelyslightandshifty。
　　Itisamongthesetransmittedinstitutionalhabitsofthoughtthattheownershipofpropertybelongs。Itrestsonthelikegeneralbasisofuseandwont。Thebindingrelationofpropertytoitsownerisofaconventional，putativecharacter。Butwhiletheseotherconventionalnormscitedaboveareintheirdecline，thisyoungeroneoftheinheritedinstitutionsstandsforthwithoutapologyandshowsnoapprehensionofbeingcrowdedintothebackgroundofsentimentalreminiscence。