red years ago, there was generally little necessity for the exchange of products. Each family produced most of the

oncentrates upon one particular kind of work, and is content to exchange a share of his earnings for the numerous goods and services which he cannot supply for himself.

hat New England is best suited to manufacturing, the South to the growing of cotton, and certain parts of the West to the production of lumber and foodstuffs. The suitability of a region to a particular class of products is due, partly to location, partly to the nature of the soil and the climate, and partly to the inclination and training of the people. But whatever its causes, this territorial division

f each should be pointed out here. The term business man is very wide, and is commonly inclusive of all who actively engage in any sort of business. The primary function of the middleman is to act as a connecting link between various industrial enterprises. The entrepreneur, on the other hand, is primarily an individual who co?rdinates land, labor, and capital with the intention of initiating and con

comes into business contact with the tanner. The banker or broker who connects the entrepreneur with the money with which to set up a shoe factory may be called a middleman, as may the individual who aids the entrepreneur in getting the required amounts of land and labor with which to start manufacturing. When, under the direction of the entrepreneur, the shoe has bee

s of a community, the community gains. When, on the other hand, there are more middlemen at work than are really needed to perform the work of industrial co?rdination, the community loses. This loss is a double one: first, the working energy of the superfluous middlemen is wasted, or at least is applied uneconomically; second, middlemen are paid, directly or indirectly, out o

ne commodity directly for another. Where the division of labor has been so little developed that the goods to be exchanged are relatively few, this may work very well, but in modern industry barter would be inexpedient, if not impossible. The farmer who had a surplus of cattle and desired a piano mi

"capital" are often used interchangeably. Strictly speaking, however, money is a form of capital. Moreover, it is only one form of capital] In modern times gold, silver, nickel, and copper coins have been the most familiar forms, tho

divided as to measure the value of an article rather exactly. The farmer does not fear that he could not use the money received for the cattle, for money is generally accepted in exchange for any commodity. The farmer now offers the money to the piano-owner, who is probably a middleman. Again the fact that

part of our preparation for the study of the great problem of indus

ndividuals desiring to buy commodities likewise resort to the market. In the market commodities are said to have value, that is to say, they have power in exchange. The power of a commodit

ity depends partly upon the intensity with which it is desired by persons able and willing to purchase it, and partly upon its available supply. Price is set as the result

NS ON T

lation between the divisi

nge dependent upon transpo

co?rdinators, and dis

of the middleman with refe

ty more middlemen than are really

t is b

t extensively used

fine

e primary fun

ation of the servic

Distinguish betwee

wo factors is v

price set o

RED R

ngs in American Demo

f the fo

ption of Industr

conomics, chapters xix,

hat It Is and How to

Nations, Book 1, c

N THE REQUI

one time or another have been used

metals first coined

e phrase "Time is mone

n of the bank check? (

ning of scarcity.

istics of a modern market

e "higgling of the mar

t law of the market"

which the organization and practice of the m

e "widening of the mark

vision of labor is limited by the exte

INVESTIGATI

to specialize? To what extent is this specialization due to the nature of th

f your section? Trace these products as n

appear on your dinner table and att

section take place by means of canals, inland waterways,

hone and telegraph used to faci

he operations there, with reference t

ify the middlemen

es a century ago. (Bogart and Thompson, Readings in the

ted States since 1860. (Bogart, Economic Histo

Bullock, Selected Readings

esent time. (Adams, Descript

(Bullock, Selected Readings

sons in Community and National

n Community and National Li

. (Adams, Description

ons in Community and National

nth century. (Bullock, Selected Re

ization. (Marshall and Lyon, Our Econ