world market necessitated credit on a new and
infinitely larger scale.

No less important than the revolution in industry was the revolution in
economic theory which accompanied it. Unlimited competition replaced the
state paternalism of the mercantilists. Adam Smith in 1776 espoused the
cause of economic liberty, believing that if business and industry were
unhampered by artificial restrictions they would work out their own
salvation. His pronouncement was scarcely uttered before it became the
shibboleth of statesmen and business men. The revolt of the American
colonies hastened the general acceptance of this doctrine, and England
soon found herself committed to the practice of every man looking after
his own interests. Freedom of contract, freedom of trade, and freedom
of thought were vigorous and inspiring but often misleading phrases.
The processes of specialization and centralization that were at work
portended the growing power of those who possessed the means to build
factories and ships and railways but not necessarily the freedom of the
many. The doctrine of laissez faire assumed that power would bring with
it a sense of responsibility. For centuries, the old-country gentry and
governing class of England had shown an appreciation of their duties,
as a class, to those dependent upon them. But now another class with no
benevolent traditions of responsibility came into power--the capitalist,
a parvenu whose ambition was profit, not equity, and whose dealings with
other men were not tempered by the amenities of the gentleman but were
sharpened by the necessities of gain. It was upon such a class, new in
the economic world and endowed with astounding power, that Adam Smith's
new formularies of freedom were let loose.

During all these changes in the economic order, the interest of the
laborer centered in one question: What return would he receive for his
toil? With the increasing complexity of society, many other problems
presented themselves to the worker, but for the most part they were
subsidiary to the main question of wages. As long as man's place
was fixed by law or custom, a customary wage left small margin for
controversy. But when fixed status gave way to voluntary contract, when
payment was made in money, when workmen were free to journey from town
to town, labor became both free and fluid, bargaining took the place of
custom, and the wage controversy began to assume definite proportions.
As early as 134