Industrial Progress and Human Economics Part 1
Industrial Progress and Human Economics.
by James Hartness.
FOREWORD.
The purpose of this book is to indicate the natural way to increase our industrial development. To accomplish this there is set forth an outline of an industrial policy. This policy relates to procedure and methods for starting and managing industrial plants.
It conforms to our economic conditions and offers the safest and easiest course.
While it is written to create more desirable industrial establishments within the state and to increase the vitality of the existing plants, it is distinctly a guide for the individual, for it facilitates the progress of the man as well as that of the state.
It is a practical policy that stimulates and energizes the industrial spirit and at the same time, directs our energies along the easiest road of progress in personal and state development.
It sets forth certain fundamental principles that apply broadly to all activities, but specifically to manufacturing and the means and methods that must be employed to win in the industrial conquest.
To the investor it provides the best measure by which he can estimate the economic soundness and prospects of an enterprise. It gives confidence in right projects, making money available for things that are right, and reducing the hazard of investments by eliminating the badly or indifferently managed organizations and those founded on unsound policies.
To the men in an organization it is also of great value, for by it they can estimate their own prospects for progress. They risk not only their earning power but their chances for personal development. Their chances in acquisition of high degree of ability and in advance from position to position also depends upon the policy of management and success of the enterprise. The loss of opportunity of any of these men really transcends the loss of money, for it involves the loss of personal development and all that that means.
It is obvious too that the management of each organization will be of a more successful type when the entire personnel grasps the essentials of industrial development.
When these essentials are understood and recognized as standards of measure there will be less conflict between the investors and the managers. Then it will be possible for managers and all others to use all of their energies wholly for progressive work rather than using a large part of their time and energy explaining each move to the investors.
Managers need the support and confidence of the investors. Every day requires a firm adherence to a definite policy. Nothing less than the firmest determination will hold an organization to a true course. With a division of opinion, the natural drift is away from the standards on which modern success depends. Not only is it necessary to have these principles understood by investors, but also by all whose opinions will in any way affect the spirit of the men in the organization.
The whole scheme, as it is set forth, is true to the fundamentals of human economics, for it provides ways by which the energies of mind and body are used most effectively. It brings a progressive growth and creates in each the greatest productive capacity. So that, as individuals and as a state, we will produce the greatest value for a given amount of labor.
It is the only way by which we can compete with other states and countries. It is the natural and inevitable way for Vermonters to travel.
CONQUEST OF PEACE.
Before the war Vermont and the nation were approaching a serious economic crises. The war has accentuated the gravity of the situation, but has also demonstrated certain human characteristics that can be enlisted to correct our course. We found during the war that we were ready to take heroic action whenever an occasion demanded it--that there was a solidarity of purpose of our people.
This characteristic must now be invoked. We must meet the conditions that confront us by unity of public opinion and team work.
The conditions that confront us do not involve the possibility of immediate invasion of our country by a hostile nation, but they carry a burdensome penalty if we fail to take the right action.
Happily we are not required to risk our lives or even work harder, but we must recognize the plain facts that we are not sharing in the general economic progress of our neighboring states.
In war the nation that wins the victory imposes a burden of tax on the conquered nation. In the conquest of peace the victorious nations also impose a burden on the losers. This burden is just as real as the burden imposed by war, for in both cases the losers are paying tribute to the winners. This applies to states, to communities, to families and to men. The situation calls for prompt attention and concerted action by the people of our state and country.
In the conquest of peace success comes to those people who produce the greatest value with a given expenditure of energy, or, in other words, to the people who at the end of a day's, a year's or a life's work can measure their return in the largest value.
Dollars const.i.tute our measures of value for they are our medium of exchange of our products of labor. If, to accomplish the same result, the man with inferior implements must work harder than the man with the best implements, it is very easy to see who has to pay tribute to the other in the market where values are compared and payment made for values.
Owing to the advance that has been made both in invention of implements and methods and in the organization of workers, there is now a marked difference in the value of the product of a day's work. A study of this situation shows the supreme need of action that will direct our energies as individuals and as a state in a way that will bring the largest value for a day's work.
We must choose with care our work, our equipment and our methods of combining our efforts. There must be team work within each industrial plant and each plant must be in tune with the whole competing world.
As a people we have not lagged behind, in fact we have been leaders in many important branches, but our enterprise has known no state boundaries, and many of our men and women have gone to other states. Hence, while as a people we have been leaders, as a state we have been lagging behind the more active industrial states.
Vermont is very close to the most highly developed industrial center on the face of this globe. These centers, through coordination, invention and choice of work, have been able to produce greater values per man per day. Men with the spirit of industry and a practical knowledge gained by experience in these highly developed centers go out from such centers and build up other industrial centers wherever the best opportunity appears.
The nearest places to these centers are the most natural fields in which to start new organizations. But when no cooperating spirit is found near at hand, these carriers of industry go till they find better places. Many have traveled past Vermont because we were busy in other lines and our money was being sent to other states for investment. Many of our own men left the town of Windsor during the last sixty years, and from this one town there has been built a number of important industries in other states notably in Ma.s.sachusetts and Connecticut.
It is not necessary to a.s.sume that the industrial spirit has spread under the guidance of man or just by chance as these men of practical knowledge and enterprise have drifted. It may be that the successful new centers were merely a few of thousands of attempts in other places. Our problem is to study the conditions under which these industries thrive and then see how we can establish these conditions.
In this way we will be acting in harmony with the natural drift or natural law, if you prefer, and this is one of the purposes of this book.
VERMONT FAVORABLY LOCATED.
Our nearness to these industrial states give us an advantage over more remote states, but it is not sufficient in itself to bring our share of industrial expansion. Nevertheless it is one of the greatest advantages and const.i.tutes one of the strong points on which we base our faith in our plan for greater industrial development.
The next element to nearness to existing plants is the spirit and understanding of the people. Vermont has the best spirit of industry but has not the fullest conception of industrial life and opportunity. It is this purpose of setting forth the principles of desirable industrial life that const.i.tutes the next step.
When these principles are understood, we will improve the chances for the acquisition of local industries through the coming of others from nearby states or by the establishment of new plants by some of our own people who are already well qualified to carry forward such enterprise. But whether it is brought about by these or any other means, the basic principle on which successful industries are built must be known and must const.i.tute the policy of organization and management.
The principles set forth are basic. They const.i.tute the necessary addition of the practical knowledge of invention, management and general business knowledge gained in existing plants.
Industrial life calls for the best that is found in brain, enterprise and ability and should have every possible aid and cooperation. Furthermore it should be protected from impractical promoters, impractical managers and obstructive theorists.
It is actual work and accomplishment that counts. The workers and those who lead and cooperate with them should not have their combined efforts handicapped by those who have never done actual work or who have never been performing an essential service.
Indifference and misdirection are our greatest enemies in times of peace. These hinder our growth and if allowed to exist, will ultimately lead to our becoming a subservient people.
We are all ready to accept these facts but may differ as to the best ways to use our energies.
We are already making good progress in various branches of agriculture, granite and marble work, and in various branches of manufacturing of wood, textiles and metal, but a direct comparison with our manufacturing states shows that we do not bring into the state an adequate return for our labor.
Many of our young people migrate to more remunerative kinds of work in other states, and as already stated some of these Vermonters have led in the creation and upbuilding of great industrial establishments.
There are now many good chances to create new and energize our existing industries.
Some may ask why should we consider other industries when we can find many good opportunities in our present enterprises. The answer is that our people drift away to other states to get into these industries for there they have discovered that the best chance to produce a large value for a day's work is where best implements are used and where there is the best organization of workers.
They have found that in some respects we are lagging behind in the use of best methods and best implements.
OUR PROBLEM.
Without going further into the a.n.a.lysis of the conditions that confront us, it is obvious that an increase in the size and number of desirable industries is an object worthy of our attention and efforts.
We have clearly in mind that more money flowing into the state will improve our entire economic situation. Taxes, markets, population, schools, opportunities for Vermonters and general improvement in all values and interests.
The next thing to do is to get an industrial policy that will guide us in our course as individuals, managers, engineers, manufacturers, investors, progressive workers and as citizens. The idea must precede action and the action must precede results. The true idea will bring results of like character, hence the need of the fullest knowledge on which to form the idea.
A simple outline of a desirable industry may be drawn through the following points: