LegislationandlegaldecisionsarebasedonthedogmaofNaturalLiberty。ThisispeculiarlytrueasregardstheEnglish-speakingpeoples，thefoundationofwhosejurisprudenceisthecommonlaw，anditholdstrueinanespecialdegreeofAmerica。InotherEuropeancommunitiestheswayofnaturalrightspreconceptionsisnotsounmitigated，butevenwiththemthereisavisiblygrowingpredilectionforthenatural-rightsstandpointinallmatterstouchingbusinessrelations。Thedogmaofnaturallibertyispeculiarlyconducivetoanexpeditiousbusinesstrafficandpeculiarlyconsonantwiththehabitsofthoughtwhichnecessarilyprevailinanybusinesscommunity。
　　Thecurrentbodyofnatural-rightspreconceptionsantedatesthemodernbusinesssituation。Theschemeofnaturalrightsgrewupandfoundsecurelodgementinthecommonsenseofthecommunity，aswellaswithitslawgiversandcourts，underthedisciplineofthesmallindustryandpettytrade“domesticindustry“whosedevelopmentculminatedintheeighteenthcentury。1*Inindustrialmatterstheefficientandautonomousfactorinthedaysofthesmallindustrywastheindividualworkman，hispersonalforce，dexterity，anddiligence；similarlyinthepettytradeoftheprecapitalisticEnglishsituationthedecisivefactorwasthediscretionandsagacityofthesmallmerchantandpettyemployer，whostoodinthedirectpersonalrelationswiththeircustomersandtheiremployees。Insofarastradeandindustrywasnotrestrainedbyconventionalregulations，statutoryorcustomary，bothtradeandindustrywasineffectanopenfieldoffreecompetition，inwhichmanmetmanonasomewhatequablefooting。Whilethecompetitorswerenotonafootingofmaterialequality，theindustrialsystemwassufficientlyloose-jointed，ofasufficientlydiffusegrowth，tomakecompetitioneffectiveintheabsenceofmandatoryrestrictions。Thelikewillholdofthebusinessorganizationassociatedwiththesmallindustry。Bothtradeandindustryweremattersofpersonalefficiencyratherthancomprehensivelyorganizedprocessesofanimpersonalcharacter。2*
　　Naturalrights，astheyfoundtheirwayintotheconceptionsoflawandequity，wereineffecttheassumedequalrightsofmensosituatedonaplaneofatleastconstructiveequalitythattheindividualsconcernedwouldbeleftinapositionofeffectivelyfreechoiceifconventionalrestrictionsweredoneaway。Theorganizationwasnot，mechanically，aclose-knitone，inthesensethattheconcatenationofindustrialprocessesorofbusinesstransactionswasnotrigorouseitherinpointoftimerelationsorofthequantityandcharacteroftheoutputorthework。Neitherweretheplace，pace，circumstances，means，orhoursofworkcloselydeterminedfortheworkmanorhisemployerbymechanicalcircumstancesoftheindustrialprocessorofthemarket。Thestandardizationoflifeundertheoldregimewasofaconventionalcharacter，notofamechanicalkindsuchasisvisibleinthemorerecentdevelopment。Andthisconventionalstandardizationwasgraduallylosingforce。
　　Themovementofopiniononnatural-rightsgroundconvergedtoaninsistenceonthesystemofnaturalliberty，socalled。Butthisinsistenceonnaturallibertydidnotcontemplatetheabrogationofallconventionalprescription。“Thesimpleandobvioussystemofnaturalliberty“meantfreedomfromrestraintonanyotherprescriptivegroundthanthataffordedbytherightsofownership。Initseconomicbearingthesystemofnaturallibertymeantasystemoffreepecuniarycontract。“Libertydoesnotmeanlicense；“whichineconomictermswouldbetranscribed。
　　“Thenaturalfreedomoftheindividualmustnottraversetheprescriptiverightsofproperty。“Propertyrightsbeingincludedamongnaturalrights，theyhadtheindefeasibilitywhichattachestonaturalrights。Naturallibertyprescribesfreedomtobuyandsell，limitedonlybytheequalfreedomofotherstobuyandsell；withtheobviouscorollarythattheremustbenointerferencewithothers’buyingandselling，exceptbymeansofbuyingandselling。
　　ThisprincipleofnaturalpecuniarylibertyhasfounditsmostunmitigatedacceptanceinAmerica，andhasheretakenthefirmestholdonthelegalmind。Nowhereelsehasthesacrednessofpecuniaryobligationssopermeatedthecommonsenseofthecommunity，andnowheredoespecuniaryobligationcomesonearbeingtheonlyformofobligationthathastheunqualifiedsanctionofcurrentcommonsense。Here，asnowhereelse，doobligationsandclaimsofthemostdiversekinds，domestic，social，andcivil，tendtotakethepecuniaryformandadmitofbeingfullydischargedonamonetaryvaluation。Toagreaterextentthanelsewherepublicesteemisawardedtoartists，actors，preachers，writers，scientists，officials，insomeroughproportiontothesumspaidfortheirwork。
　　Americancivilrightshavetakenanextremeform，withrelativelygreatstressontheinviolabilityofpecuniaryrelations，duetothepeculiarcircumstancesunderwhichtheAmericancommunityhasgrownup。Thepioneers，especiallyinthatNorth-AtlanticseaboardcommunitythathasbeenchieflyeffectiveinshapingAmericantraditions，broughtwiththemasomewhathigh-wroughtvariantoftheEnglishpreconceptioninfavorofindividualdiscretion，andthistraditiontheyputinpracticeundercircumstancespeculiarlyfavorabletoabolddevelopment。
　　Theybroughtlittleoftheremnantsofthatprescriptivecodethatonceboundthehandicraftsystem，andtheconditionsoflifeinthecoloniesdidnotfosteranewgrowthofconventionalregulationscircumscribingprivateinitiative。Americaisthenativehabitatoftheself-mademan，andtheself-mademanisapecuniaryorganism。3*
　　Presently，whenoccasionarose，themetaphysicsofnaturalliberty，pecuniaryandother，wasembodiedinsetforminconstitutionalenactments。Itisthereforeinvolvedinamoreauthenticformandwithmoreincisiveforceinthelegalstructureofthiscommunitythaninthatofanyother。Freedomofcontractisthefundamentaltenetofthelegalcreed，sotospeak，inviolableandinalienable；andwithintheprovinceoflawandequitynoonehascompetencetopenetratebehindthisfirstpremiseortoquestionthemeritsofthenaturalrightsmetaphysicsonwhichitrests。Theonlyprincipleattestedhabitofthoughtwhichmaycontestitsprimacyincivilmattersisavague“generalwelfare“clause；andeventhiscaneffectivelycontestitsclaimsonlyunderexceptionalcircumstances。Undertheapplicationofanygeneralwelfareclausethepresumptionisandalwaysmustbethattheprincipleoffreecontractbeleftintactsofarasthecircumstancesofthecasepermit。Thecitizenmaynotbedeprivedoflife，liberty，orpropertywithoutdueprocessoflaw，andthedueprocessproceedsonthepremisethatpropertyrightsareinviolable。Initsbearingupontheeconomicrelationsbetweenindividualsthiscomestomean，ineffect，notonlythatoneindividualorgroupofindividualsmaynotlegallybringanyotherthanpecuniarypressuretobearuponanotherindividualorgroup，butalsothatpecuniarypressurecannotbebarred。
　　Now，throughgradualchangeoftheeconomicsituation，thisconventionalprincipleofunmitigatedandinalienablefreedomofcontractbegantogrowobsoletefromaboutthetimewhenitwasfairlyinstalled；obsolescent，ofcourse，notinpointoflaw，butinpointoffact。Sinceaboutthetimewhenthisnewconventionalstandardizationoftheschemeofeconomiclifeintermsoffreecontractreacheditsmaturedevelopment，intheeighteenthcentury，4*anewstandardizingforce，thatofthemachineprocess，hasinvadedthefield。5*Thestandardizationandtheconstraintofthesystemofmachineindustrydiffersfromwhatwentbeforeitinthatithashadnoconventionalrecognition，nometaphysicalauthentication。Ithasnotbecomealegalfact。Thereforeitneitherneednorcanbetakenaccountofbythelegalmind。Itisanewfactwhichfitsintotheframeworkneitheroftheancientsystemofprescriptiveusagenorofthelatersystemoffreepersonalinitiative。Itdoesnotexistdejure，butonlydefacto。Belongingneithertothedefunctsystemnortothecurrentlegalsystem，sinceitneitherinstitutesnortraversesa“naturalright，“itis，aswithinthecognizanceofthelaw，non-existent。Itis，perhaps，actual，withagross，materialactuality；butitisnotreal，withalegal，metaphysicallycompetentreality。Suchcoercionasitmayexert，orasmaybeexercisedthroughitsmeans，therefore，is，inpointoflegalreality，nocoercion。
　　Wherephysicalimpossibilitytofulfilthetermsofacontractarisesoutoftheconcatenationofindustrialprocesses，thisphysicalimpossibilitymaybepleadedasinvalidatingthetermsofthecontract。Butthepecuniarypressureofpriceorsubsistencewhichthesequenceandinterdependenceofindustrialprocessesmaybringtobearhasnostandingassuchinlaworequity；itcanreachthecognizanceofthelawonlyindirectly，throughgrossdefectionofoneofthecontractingparties，inthosecaseswherethepressureissevereenoughtoresultininsolvency，sickness，ordeath。Thematerialnecessitiesofagroupofworkmenorconsumers，enforcedbythespecializationandconcatenationofindustrialprocesses，is，therefore，notcompetenttosetaside，orindeedtoqualify，thenaturalfreedomoftheownersoftheseprocessestoletworkgoonornot，astheoutlookforprofitsmaydecide。Profitsisabusinessproposition，livelihoodisnot。6*
　　Underthecurrentdefactostandardizationofeconomiclifeenforcedbythemachineindustry，itmayfrequentlyhappenthatanindividualoragroup，e。g。，ofworkmen，hasnotadefactopoweroffreecontract。Agivenworkman’slivelihoodcanperhaps，practically，befoundonlyonacceptanceofonespecificcontractoffered，perhapsnotatall。Butthecoercionwhichinthiswaybearsuponhischoicethroughthestandardizationofindustrialprocedureisneitherassaultandbatterynorbreachofcontract，anditis，therefore，notrepugnanttotheprinciplesofnaturalliberty。Throughcontrollingtheprocessesofindustryinwhichalone，practically，givenworkmencanfindtheirlivelihood，theownersoftheseprocessesmaybringpecuniarypressuretobearuponthechoiceoftheworkmen；butsincetherightsofpropertywhichenforcesuchpressurearenotrepugnanttotheprinciplesofnaturalliberty，neitherissuchpecuniarypressurerepugnanttothelaw，thecaseisthereforeoutsidethescopeofthelaw。
　　Theconversecase，wheretheworkmentakesimilaradvantageoftheiremployerstobringthemtoterms，issimilarlyoutsidethescopeofthecommonlaw，-supposing，ofcourse，thattherehasinneithercasebeenasurrenderofindividualliberty，abreachofcontract，theft，aresorttoviolence，orthreatsofviolence。
　　Solongasthereisnoovertattemptonlife，libertyoftheperson，orthelibertytobuyandsell，thelawcannotintervene，unlessitbeinaprecautionarywaytopreventprospectiveviolationofpersonalorpropertyrights。
　　The“natural，“conventionalfreedomofcontractissacredandinalienable。Defactofreedomofchoiceisamatteraboutwhichthelawandthecourtsarenotcompetenttoinquire。Byforceoftheconcatenationofindustrialprocessesandthedependenceofmen’scomfortorsubsistenceupontheorderlyworkingoftheseprocesses，theexerciseoftherightsofownershipintheinterestsofbusinessmaytraversethedefactonecessitiesofagrouporclass；itmayeventraversetheneedsofthecommunityatlarge，as，e。g。，intheconceivablecaseofanadvisedlyinstitutedcoalfamine；butsincethesenecessities，ofcomfortoroflivelihood，cannotbeformulatedintermsofthenaturalfreedomofcontract，theycan，inthenatureofthecase，giverisetonocognizablegrievanceandfindnolegalremedy。
　　Thediscrepancybetweenlawandfactinthematterofindustrialfreedomhashadrepeatedillustrationinthecourtdecisionsondisputesbetweenbodiesofworkmenandtheiremployersorowners。Thesedecisionscommonlyfalloutinfavoroftheemployersorowners；thatistosay，theygotoupholdpropertyrightsandtherightsoffreecontract。Thecourtshavebeensomewhatbroadlytakentotaskbyacertainclassofobserversforallegedpartialitytotheowners’sideinthisclassoflitigation。Ithasalsobeenpointedoutbyfaultfindersthatthehighercourtsdecide，onthewhole，moreuniformlyinfavoroftheemployer-ownerthanthelowerones，andespeciallymoresothanthejuriesinthosecaseswherejurieshavefoundoccasiontopassonthelawofthecase。Thelikeistrueasregardssuitsfordamagesarisingoutofinjuriessustainedbyworkmen，andsoinvolvingthequestionoftheemployer’sliability。Evenacasualscrutinyofthedecisions，however，willshowthatinmostcasesthedecisionofthecourt，whetheronthemeritsofthecaseorontheconstitutionalityofthelegalprovisionsinvolved，7*iswellgroundedonthemetaphysicalbasisofnaturalliberty。Thatistosayinotherwords，thedecisionswillbefoundonthesideofthemaintenanceoffundamentallawandorder，“lawandorder“having，ofcourse，referencetotheinalienablerightsofownershipandcontract。Asshouldfairlybeexpected，thehighercourts，whoarepresumablyinmoreintimatetouchwiththeprinciplesofjurisprudence，beingmorearduouslytrainedandmorethoroughlygroundedinthelawatthesametimethattheyhavealsopresumablyalargerendowmentoflegalacumen，-thesehighercourtsspeakmoreunequivocallyforthemetaphysicalprinciplesandapplythemwithasurerandfirmertouch。Intheviewofthesehigheradeptsofthelaw，freecontractissoinalienableanaturalrightofmanthatnotevenastatutoryenactmentwillenableaworkmantoforegoitsexerciseanditsresponsibility。Bymetaphysicalnecessityitsexerciseattachestotheindividualsoindefeasiblythatitcannotconstitutionallybedelegatedtocollectiveaction，whetherlegislativeorcorporate。8*Thisextremeconsequenceoftheprincipleofnaturallibertyhasattimesarousedindignationinthevulgar；buttheirgraspoflegalprinciplesisatfault。Themorecloselythelogicalsequenceisfollowedup，themoreconvincinglydoesthelegitimacyofsuchadecisionstandout。