Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
§ 11. #Limitation of competition by custom.#[8] The relatively large
influence of competition in present society appears more plainly in
comparing the present system with that of an earlier state of society
or with that of a present savage tribe. A member of the lowest human
societies is subject to law; tho he is a savage he is not "untutored."
On the contrary he is bound in many ways to follow customary lines
of conduct, and a large part of his time is given to learning the
traditions and then to observing the ceremonials of the tribe.
Primitive customs always take on a religious sanction, and every
member of the tribe is piously bound to do as his fathers have done
and as his neighbors are doing. This limitation applies to the choice
of food to eat, clothes to wear, time to hunt, plant, and harvest,
weapons and tools to use, where and how to trade, how much to give or
take, and to countless other details of economic choice. So, in early
society, economic relations were complex and but slowly changing from
generation to generation. Custom, rather than competition, ruled in
manifold ways the economic actions of men.
Custom continued to rule a large share of the individual life of the
peoples of northern Europe through barbarian and feudal times. Its
force has gradually decreased, but even yet is not entirely set aside.
Political and economic interests were not clearly distinct in the
Middle Ages. Land was the all-important kind of wealth. Military
and other public services were performed by the higher landlords (as
vassals of their overlords) who in this way paid at the same time what
we to-day would call rent and taxes. The landlord in turn received
from his underlings services and goods in kind (food and supplies) and
so (in modern eyes) was both a collector of taxes and a receiver of
rent. The rent, however, was not a competitive price, but consisted
of the dues and services which the forefathers had been accustomed to
pay. In many ways also in the towns, close organizations of craftsmen
and of merchants regulated prices and kept others out of their
industries. Industrial privilege pervaded the life of that time.
Yet through all the Middle Ages ran the forces of competition. The
inefficiency of customary services and the high prices charged
by selfish privilege were constant invitations to men to become
competitors. Men strove to break over the barriers of custom and of
prejudice. Their efforts to attain freedom to compete was the vital
force of the time. The industrial history of the Middle Ages was
largely the story of the struggle of the forces of competition against
the bonds of custom and privilege.
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