Business traffic and buainesa outcome are standardized in terms of the money unit, while the industrial process and its output are standardized in terms of physical measurements (mechanical efficiency). In the cui^ rent habits and conventions of the business community, the unit of money is accepted and dealt with as a standard measure. The stability of the standard unit cannot be effectually questioned within the scope of business traffic. According to the practical metaphysics of the business community, the money unit is an invariable magnitude, whatever may be true of it in fact. A man imbued with these business metaphysics and not given to fine-spun reflection, as business men commonly are not, is richer or poorer in his own apprehension, according as hie balance sheet shows a greater or less number of these standard units of value. Investment, expenses, vendible output, earnings, fixed charges, and capitalization run in terms of this value unit. A reduction of earnings or of capitalization, as rated in terms of the value unit, is felt as an impoverishment. The reduction of capitalization in these terms is, therefore, a hardship, which is only reluctantly and tardily submitted
THE THEORY OF MODERN WELFARE 233
to, even if it carries no hardship in the way of a reduced command over the material means of production, of life, or of comfort. A business man's rating in the business community likewise rests on the pecuniary magnitude of his holdings and his transactions, not on the mechanical serviceability of his establishment or his output ; and this business rating is a large part of the business man's everyday ambition. An enhancement of it is a source of secure gratification and self-respect, and a reduction of it has a very substantial contrary effect.' A reduction T)f the pecuniary showing is submitted to only reluctantly and tardily, after it has become unavoid-