_Short credits vs. hard times._--More important than legal enactments are the business habits of a community, and these can be cultivated by business men. Farmers, of all classes of people, can foster such customs of careful inspection of business standing and frequent settlement of accounts and careful loaning as will make a panic less possible. They need, however, a wider acquaintance with the machinery of business and a firmer faith in the advantage to all concerned of cash payments and absolute promptness in all settlements. The moral power of such a body, amounting to one-half the population, most of whom are solid owners of property, would, if well informed and united in principle, check most of the extravagances in expenditure and investment which waste the capital of the country.
_Bankruptcy._--In closing the discussion of hard times, it is proper to mention a device for removing in part the discouragement of debts where ability to pay is entirely wanting. Of course, a settlement between debtor and creditors, in which the property of the debtor is divided among his creditors, is always available, leaving both at liberty to begin business anew with a knowledge of the worst that can happen. It seems possible to contrive bankruptcy laws in such shape as to secure a fair settlement of insolvent business whenever the business is evidently failing. If discovery of fraud or misrepresentation could cause immediate intervention in a bankruptcy court, the surest possible check would be brought to bear upon improper credits. It is certainly to the interest of all honest creditors and debtors that a fair settlement should be reached as early after insolvency as possible. Such bankrupt laws should be as wide reaching in their uniformity as government permits. If a national bankrupt law is not sufficient, the states should combine to establish in each the same general system.
Chapter XIII. Technical Division Of Labor.
_Economy of minute division._--The advantages, limits and disadvantages of minute division of labor are worthy of a more careful discussion, since they bear upon every kind of enterprise and all classes of labor. A large part of the century's progress in manufacture, and especially the development of machinery in production, has grown out of the extension of this principle of division. An analysis of the particulars by which great saving is made in the cost of production will help us not only to understand the facts better, but to extend the principle in various directions. In the outset it implies the united effort of several workmen in succession and in close combination upon a single product. It is said that a pocket knife, which we buy for fifty cents, has involved in its manufacture the services of seventy-two different persons, doing different things. The perfection of its finish depends upon the perfection of each of these persons in his single act. The cheapness depends upon the readiness with which each act is performed, and the utility of every kind of power employed.