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 722 THE AMERICAN JOURNAL OF SOCIOLOGY

today's political policies show that the industrial order is break- ing a path which is a compromise way between private economy and collective economy.

Symptomatic of this harmonization of the antitheses is nationalism in its modern type. If we regard individualism and socialism as the two component forces in the state, their result- ant is nationalism. Nationalism satisfies both in so far as it presents on the one hand a unity of individual type, on the other hand a great social group. A like harmonization of the antith- eses may be contained in the state socialism connoted in the above cited doctrine of Schmoller, and favored in Germany in a special manner also by Adolf Wagner.

With this criticism of Schmoller's propositions I have antici- pated in many respects the position of Karl Biicher. 1 The latter takes a deeper and more comprehensive view of the problem. He is not satisfied with the ordinary conception of the division of labor. He distinguishes rather five types of division: (i) division of production (Produktionsteilu?tg) ; (2) apportioning of labor (Arbeitszerlegu?ig)\ (3) specialization; (4) separation into callings (Berufsteilung) ; and, finally, (5) displacement of labor (Arbeitsverschiebung] . This fivefold division has this immediate advantage of avoiding the confusion that has arisen from Adam Smith's well-known illustration of needle manufacture. In that illustration we have primarily only the phenomena of appor- tioning labor ((2) above). These phenomena are, however, both for national economy and for sociology, much less essen- tial than the division of production (i) with which it is usually confounded. Smith further traced division of labor to a basal psychic impulse in man the impulse to exchange. Biicher on the contrary denies that such an impulse exists in primitive man. In low stages of culture indeed we encounter an unconquerable mistrust of all exchange. We might rather affirm that the impulse to exchange gets its origin under the influence of an

1 Die Entstehung der Volkswirtschaft. Sechs Vortrage. Tubingen, 1893. We have here to do with lectures I and III only. The former bears the title of the series ; the latter is entitled Arbeitsteilung und socialc Klassenbildung.