Foreword
as a result of speculation, money-lending, commercial enterprise, buccaneering and war, is as old as history. Capitalism, as an economic system, resting on the organisation of legally free wage-earners, for the purpose of pecuniary profit, by the owner of capital or his agents, and setting its stamp on every aspect of society, is a modern phenomenon.
All revolutions are declared to be natural and inevitable, once they are successful, and capitalism, as the type of economic system prevailing in Western Europe and America, is clothed to-day with the unquestioned respectability of the triumphant fact. But in its youth it was a pretender, and it was only after centuries of struggle that its title was established. For it involved a code of economic conduct and a system of human relations which were sharply at variance with venerable conventions, with the accepted scheme of social ethics, and with the law, both of the church and of most European states. So questionable an innovation demanded of the pioneers who first experimented with it as much originality, self-confidence, and tenacity of purpose as is required to-day of those who would break from the net that it has woven. What influence nerved them to defy tradition? From what source did they derive the principles to replace it?
The conventional answer to these questions is to deny their premises. The rise of new forms of economic enterprise was the result, it is argued, of changes in the character of the economic environment. It was due to the influx of the precious metals from America in the sixteenth century, to the capital accumulated in
