The industrial side of the process has had similar influence toward union. Free craftsmen in the towns found mutual support in guilds, when as yet the farm laborer or villein had to get on as best he could unaided. The factory system itself has been largely organized from above down. It has very largely assumed that the higher command needs no advice or ideas from below. Hours of labor, shop conditions, wages, have largely been fixed by "orders," just as governments once ruled by decrees. But as dominance in government has led men to unite against the new power and then has yielded to the more complete coöperation of participation, so in industry the factory system has given rise to the labor movement. As for the prospects of fuller coöperation, this may be said already to have displaced the older autocratic system within the managing group, and the war is giving an increased impetus to extension of the process. Exchange of goods and services is indeed a threefold coöperation: it meets wants which the parties cannot themselves satisfy or cannot well satisfy; it awakens new wants; it calls new inventions and new forces into play. It thus not only satisfies man's existing nature, but enlarges his capacity for enjoyment and his active powers. It makes not only for comfort, but for progress. IV If trade and industry, however, embody so fully the principle of coöperation, how does it come about that they have on the whole had a rather low reputation, not only among the class groups founded on militarism, but among philosophers and moralists? Why do we find the present calamities of war charged to economic causes? Perhaps the answer to these questions will point the path along which better coöperation may be expected. There is, from the outset, one defect in the coöperation between buyer and seller, employer and laborer. The coöperation is largely unintended. Each is primarily thinking of his own advantage, rather than that of the other, or of the social whole; he is seeking it in terms of money, which as a material object must be in the pocket of one party or of the other, and is not, like friendship or beauty, sharable. Mutual benefit is the result of exchange--it need not be the motive. This benefit comes about as if it were arranged by an invisible hand, said Adam Smith. Indeed, it was long held that if one of the bargainers gained, the other must lose. And when under modern conditions labor is considered as a commodity to be bought and sold in the cheapest market by an impersonal corporate employer, there is a strong presumption against the coöperative attitude on either side.