Scientific management wants two things; more men in the labor market to fill the positions of functionalized foremen, more men than modern industrial society has produced; and it wants an army of workers who will follow directions, follow them as one of the managers said, as soldiers follow them. It wants this army to be endowed as well with the impulse to produce. It may by its methods realize one of its wants, that is, an army of workers to follow directions; but as it succeeds in this, as it is successful in robbing industry of its content, and as it reduces processes to routine, it will limit its chances to find foremen who have initiative and it will fail to get from workers the impulse to produce goods. During the last four years, under the stress of a consuming war every stimulus employed by business management for speeding up production has been advanced. Organized efficiency in the handling of materials has increased the output, as increased rewards to capital and labor have stimulated effort. But the quantitative demand of consumption requirements is insatiable. It is not humanly possible under the present industrial arrangements to satisfy the world's demand for goods, either in time of war or peace. It was never more apparent than it is now, that an increase in a wage rate is a temporary expedient and that wage rewards are not efficient media for securing sustained interest in productive enterprise. It is becoming obvious that the wage system has not the qualifications for the coördination of industrial life. As the needs of the nations under the pressure of war have brought out the inefficiencies of the economic institution, it has become sufficiently clear to those responsible for the conduct of the war and to large sections of the civil population, that wealth exploitation and wealth creation are not synonymous; that the production of wealth must rest on other motives than the desire of individuals to get as much and give as little as particular situations will stand. In England and in the United States, where the individualistic conception of the industrial life has been an inherent part of our national philosophy, the governments, with cautious reservations, have assumed responsibilities which had been carried in normal times by business. Because business administration had been dependent for its existence on a scheme of profiteering it is not in the position where it can appeal to labor to contribute its productive power in the spirit of patriotic abandon. But governments as they have taken over certain industrial responsibilities are in a better position to make such appeals to capital as well as to labor. The calculable effect of the appeal to capital to assume the responsibility is in the long run of passing importance, as under the present business arrangement that is the position capital occupies. In other words, the appeal will mark no change in capitalist psychology as it promises to do in the case of labor.