of the industrial system, the personal contact between the producer and his customer was somewhat close and lasting. Under these circumstances the factor of personal esteem and disesteem had a considerable play in controlling the purveyors of goods and services. This factor of personal contact counted in two divergent ways: {1) producers were careful of their reputation for workmanship, even apart from the gains which such a reputation might bring ; and (2) a degree of irritation and illwill would arise in many cases, leading to petty trade quarrels and discriminations on other grounds than the gains to be got, at the same time that the detail character of dealings between producer and consumer admitted a degree of petty knavery and huckstering that is no longer practicable in the current large-scale business dealings. Of these two divergent effects resulting from close personal re-
Ilations between producer and consumer the former seema on the whole to have been of preponderant consequence. Under the system of handicraft and neighborhood industry, the adage that ' Honesty is the best policy " seems on the whole to have been accepted and to have been true. This adage has V '' come down from the days before the machine's ^^j. ft$r ^ regime and before modern business enterprise. Iff Ofi'CtPf^' Under modem circumstances, where industry is T^' carried on on a large scale, the discretionary head
of an industrial enterprise is commonly removed