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 industrial organization need those talents of executive and administrative skill, power to command, courage, and fortitude, which were formerly called for in military affairs and scarcely anywhere else. The industrial army is also as dependent on its captains as a military body is on its generals. One of the worst features of the existing system is that the employees have a constant risk in their employer. If he is not competent to manage the business with success, they suffer with him. Capital also is dependent on the skill of the captain of industry for the certainty and magnitude of its profits. Under these circumstances there has been a great demand for men having the requisite ability for this function. As the organization has advanced, with more impersonal bonds of coherence and wider scope of operations, the value of this functionary has rapidly increased. The possession of the requisite ability is a natural monopoly. Consequently, all the conditions have concurred to give to those who possessed this monopoly excessive and constantly advancing rates of remuneration.

Another social function of the first importance in an intense organization is the solution of those crises in the operation of it which are called the conjuncture of the market. It is through the market that the lines of relation run which preserve the system in harmonious and rhythmical operation. The conjuncture is the momentary sharper misadjustment of supply and demand which indicates that a redistribution of productive effort is called for. The industrial organization needs to be insured against these conjunctures, which, if neglected, produce a crisis and catastrophe; and it needs that they shall be anticipated and guarded against as far as skill and foresight can do it. The rewards of this function for the bankers and capitalists who perform it are very