H. Baldwin, Jr., by John Graham Brooks, in particular Chs. 9, 11, 28, 29, 30. All my informants who can look back upon a business experience in great cities covering two generations, agree with the statement of Washington Gladden in the Outlook, 63:871 ff., that in matters of honesty the conduct of business is today on a distinctly higher plane than it was fifty years ago.

DIRECT INTEREST IN OTHERS AS A BUSINESS ASSET

A direct interest in one's employees and customers is an invaluable asset for the business man. "If you want to do a big business you have to give people their money's worth; if you want to make people feel at home in your place of business, you have to give them a homelike welcome; if you want to get the most out of your employees, you have to do all you can to make them take an interest in your work, by making their work pleasant and profitable to them; if you want your horse to do a good day's work, you must give him plenty of corn." (Waldo P. Warren, Thoughts on Business, p. 130).

If history were not forgotten almost as quickly as it is made the people of this country could never again be blind to this fact. For it is the central fact in the economic history of the slave-holding states of the Union throughout a period extending over two centuries. Under slavery almost all work was done, in the last resort, under the impulse of the fear of the lash. The results were: Shirking reduced to a science, with the enormous waste of time and material thereby entailed, complete absence of intelligence in work, with consequent subservience to routines and incapacity to solve a single problem presenting the slightest difficulty, and a system of labor which, with the inevitableness of an advancing glacier, impoverished the planter's one piece of capital, the soil.. It is not wonderful that a colony of Germans who settled in Texas in the late Forties and raised their cotton crop by free labor were able to undersell every slave-holding competitor in every part of the South and command a ready market for every pound of cotton they were able to produce.

Slave-driving is no more profitable in the long run to-day than it was sixty years ago. To reap the largest returns the employer must enlist the positive interest of the employee in his work. One of the elements of success in the career of Mr. Carnegie was that he always paid-not merely for "brains," but also for "brawn"-a little more than the highest market price.

But the problem is something more than one of paying liberal wages. The completest exercise of the powers of the employee is ordinarily brought out only by the feeling of enthusiastic loyalty for the "house." And this is evoked for the most part by the knowledge that his superior, or superiors, take a genuine friendly interest in him as a person. This interest must show itself first of all in justice or fair treatment of him and his fellows a virtue often requiring for its exercise a great expenditure of time and mental energy; then in considerateness about placing unnecessary burdens upon them, through want of system, or carelessness, or lack of prevision, or sheer indifference; then in a willingness to give positive assistance of one kind or another as it may be needed from time to time. Where this treatment does not meet with its fit response, the result may usually be traced to a patronizing manner on the part of the employer or some other form of tactlessness, or to the absence of a spirit of kindliness which betrays to the employee the ulterior motive which he is not slow to discover.

Mr. Carnegie, whose ability to teach us the conditions of business success will not be questioned, made the following statement in his presidential address before the British Iron and Steel Institute, in 1902 (printed in The World's Work, 6:3520.) "The great secret of success in business of all kinds, and especially in manufacturing, where a small saving in each process means fortune, is a liberal division of profits among the men who help to make them, and the wider the distribution the better. There lie latent unsuspected powers in willing men around us which only need appreciation and development to produce surprising results. Money rewards alone will not, however, insure these, for to the most sensitive and ambitious natures there must be the note of sympathy, appreciation, friendship. Genius is sensitive in all its forms,