in politics and in industry, was merely negative action by the
government, the repeal of the old laws, the overthrow of old abuses.
The French Revolution, following a few years later, emphasized this
thought in the political field. The philosophers of the time believed
in a "natural law" in industry and politics. The reformers of the
time wished to throw off the trammels of the past and to give men
opportunity to exert themselves "naturally." In America the old abuses
never had taken deep root, as the conditions of a new continent were
not favorable to monopoly and privilege. Altho the movement for the
repeal of medieval laws has continued in Europe from 1776 till the
present time, yet custom still is stronger to-day in Europe than
in America. Serfdom was not abolished until the first half of the
nineteenth century in Austria and southeastern Europe, and not until
the last half in Russia. Many economic and cultured forces furthered
this movement, but the most powerful intellectual force in its favor
was the work of Adam Smith. So strong an impression did Smith's book
make, that in the minds of men "free trade" became almost identical
in thought with political economy, whereas that was but the temporary
economic problem of the eighteenth century.

Many men then thought that in "free and unlimited competition" had
been found a solution of all economic problems for all time. But soon,
it was apparent that it was no such simple and absolute solution.
Indeed many of the present economic problems--in one sense all of
them--center around this one: to determine the proper forms and limits
of competition. The varied aspects that this problem takes will appear
in every portion of the following pages.

§ 14. #The wage-system.# Viewed in another aspect the present economic
and social order is called the wage-system.[9] The wage-contract, like