of those industries which are concerned with the
turning out of one product--industrial integration. The iron ore beds
of Michigan, the coal and coke industries of Pennsylvania, lime-stone
quarries, smelters, converters, rolling-mills, railroad connections
and selling organizations all unite into the Cambria Steel Company or
the Carnegie Steel Company. Timber tracts, ore properties, mills,
mines and selling agencies join to form the International Harvester
Company.

3. The organization of unlike and unrelated industries--manufacturing
industries, public utilities, insurance companies, railroads, trust
companies and banks brought under the financial control of Morgan and
Company or of some other banking syndicate.

4. The banding together of these various groups in mutual welfare
associations such as chambers of commerce, boards of trade,
manufacturers' associations and so on.

None of these organizations has any primary interest in geographic areas
or in national boundaries. Half of the business of the Standard Oil
Company of New Jersey is carried on outside of the United States; the
International Harvester Company puts up plants in Canada and in Russia;
United States Steel buys properties in Mexico; The National City Bank
opens agencies in Cuba and in Argentina. The great modern business units
deal, not with political boundaries, but with economic areas. They seek
out, as the field for their operations, abundant resources, cheap labor,
attractive markets.

The present economic system has made great strides toward the world
organization of economic life in a comparatively short time. Australia,
Canada and the United States furnish excellent illustrations of the way
in which continents have been surveyed, spanned with steel, populated
and exploited in three or four generations. So completely has the
economic system been altered that the seventeenth century world would
not recognize its infant great-grandson of the twentieth century.

5. _Limitations on Capitalism_

Important changes have been made in the structure of society since the
inauguration of the present economic system, but these changes have not
been radical enough to keep pace with the still more radical changes
that have occurred in the mechanism of economic production and exchange.
The chief failure of the present order is its failure to readjust social
machinery in conformity with the economic changes tha