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。