ProgressandPoverty:CentenaryEditionByHenryGeorge

ProgressandPoverty:AnInquiryintotheCauseofIndustrialDepressionsandofIncreaseofWantwithIncreaseofWealth,TheRemedy

Author:HenryGeorge

ToThoseWho,SeeingTheViceandMiseryThatSpringFromTheUnequalDistributionofWealthandPrivilege,FeelThePossibilityofaHigherSocialStateandWouldStriveforitsAttainment

SanFrancisco,March,1879.

THEROBERTSCHALKENBACHFOUNDATIONincorporatedin1925,toadministeraTrustFundleftbythewillofthelateRobertSchalkenbach,formerpresidentoftheNewYorkTypothetae,andsuchotherfundsasmaybedonatedtoit,forthepurposeofspreadingamongthepeopleofthisandothercountriesawideracquaintancewiththesocialandeconomicphilosophyofHenryGeorge.

Author'seditionpublishedbyW.M.HintonandCompany,SanFrancisco,1879.FirsttradeeditionpublishedbyD.AppletonandCompany,NewYork,1880.ManysubsequenteditionsissuedbyvariouspublishersinCanada,England,andtheUnitedStates.Editionsalsointwenty-fourother

languagesandinBraille.CentenaryeditionpublishedbytheRobertSchalkenbachFoundation,NewYork,1979.Paperbackeditionpublished1985.

CentenaryEdition,PrefacebyAgnesGeorgedeMille

CoverdesignbyErikEriksonKindleCoveradaptedbyVajramati

LibraryofCongressCataloging-in-PublicationData.George,Henry,1839-1897.Progressandpoverty.1.Economics.2.Singletax.I.Title.HB171.G271984(paper)33079-12191ISBN9780911312584

RobertSchalkenbachFoundation.KindleEdition,2011

TableofContents

PrefacedbyAgnesGeorgedeMilleIntroductiontotheTwenty-fifthAnniversaryEditionof"progressandPoverty"PrefacetoFourthEditionIntroductorytheProblemBookIWagesandCapitalChapterItheCurrentDoctrineofWages—its

InsufficiencyChapterIItheMeaningoftheTermsChapterIIWagesNotDrawnFromCapital,ButProduced

BytheLaborChapterIVtheMaintenanceofLaborersNotDrawnFrom

CapitalChapterVtheRealFunctionsofCapital

BookIIPopulationandSubsistenceChapterItheMalthusianTheory,ItsGenesisandSupportChapterIIInferencesFromFactsChapterIIIInferencesFromAnalogyChapterIVDisproofoftheMalthusianTheory

BookIIItheLawsofDistributionChapterItheInquiryNarrowedtotheLawsofDistribution

—necessaryRelationofTheseLawsChapterIIRentandtheLawofRentChapterIIIofInterestandtheCauseofInterestChapterIVofSpuriousCapitalandofProfitsOften

MistakenForInterestChapterVtheLawofInterestChapterVIWagesandtheLawofWagesChapterVIItheCorrelationandCo-ordinationofThese

LawsChapterVIIItheStaticsoftheProblemThusExplained

BookIVEffectofMaterialProgressUpontheDistributionofWealthChapterItheDynamicsoftheProblemYettoSeekChapterIItheEffectofIncreaseofPopulationUponthe

DistributionofWealthChapterIIItheEffectofImprovementsIntheArtsUpon

theDistributionofWealthChapterIVEffectoftheExpectationRaisedByMaterial

ProgressBookVtheProblemSolvedChapterIthePrimaryCauseofRecurringParoxysmsof

IndustrialDepressionChapterIIthePersistenceofPovertyAmidAdvancing

WealthBookVItheRemedyChapterIInsufficiencyofRemediesCurrentlyAdvocatedChapterIItheTrueRemedy

BookVIIJusticeoftheRemedyChapterItheInjusticeofPrivatePropertyInLandChapterIItheEnslavementofLaborerstheUltimate

ResultofPrivatePropertyInLandChapterIIIClaimofLandOwnerstoCompensationChapterIVPropertyInLandHistoricallyConsideredChapterVofPropertyInLandIntheUnitedStates

BookVIIIApplicationoftheRemedyChapterIPrivatePropertyInLandInconsistentWiththe

BestUseofLandChapterIIHowEqualRightstotheLandMayBeAsserted

andSecuredChapterIIIthePropositionTriedBytheCanonsof

TaxationChapterIVIndorsementsandObjections

BookIX.EffectsoftheRemedy:ChapterIoftheEffectUpontheProductionofWealthChapterIIoftheEffectUponDistributionandThence

UponProductionChapterIIIoftheEffectUponIndividualsandClassesChapterIVoftheChangesThatWouldBeWroughtIn

SocialOrganizationandSocialLifeBookX.TheLawofHumanProgress:ChapterItheCurrentTheoryofHumanProgress—itsInsufficiencyChapterIIDifferencesInCivilization—toWhatDueChapterIIItheLawofHumanProgressChapterIVHowModernCivilizationMayDeclineChapterVtheCentralTruth

ConclusiontheProblemofIndividualLife

[BacktoTableofContents]

Makeforthyselfadefinitionordescriptionofthethingwhichispresentedtothee,soastoseedistinctlywhatkindofathingitis,initssubstance,initsnudity,initscompleteentirety,andtellthyselfitspropername,andthenamesofthethingsofwhichithasbeencompounded,andintowhichitwillberesolved.Fornothingissoproductiveofelevationofmindastobeabletoexaminemethodicallyandtrulyeveryobjectwhichispresentedtotheeinlife,andalwaystolookatthingssoastoseeatthesametimewhatkindofuniversethisis,andwhatkindofuseeverythingperformsinit,andwhatvalueeverythinghaswithreferencetothewhole,andwhatwithreferencetoman,whoisacitizenofthehighestcity,ofwhichallothercitiesarelikefamilies;whateachthingis,andofwhatitiscomposed,andhowlongitisthenatureofthisthingtoendure.

—MarcusAureliusAntoninus.

[BacktoTableofContents]

PrefacetotheCentenaryEdition--1979

AHUNDREDYEARSAGOayoungunknownprinterinSanFranciscowroteabookhecalledPROGRESSANDPOVERTY.Hewroteafterhisdailyworkinghours,intheonlyleisureopentohimforwriting.Hehadnorealtraininginpoliticaleconomy.IndeedhehadstoppedschoolingintheseventhgradeinhisnativePhiladelphia,andshippedbeforethemastasacabinboy,makingacompletevoyagearoundtheworld.Threeyearslater,hewashalfwaythroughasecondvoyageasableseamanwhenhelefttheshipinSanFranciscoandwenttoworkasajourneymanprinter.Afterthathetookwhateverhonestjobcametohand.AllheknewofeconomicswerethebasicrulesofAdamSmith,DavidRicardo,andothereconomists,andthenewphilosophiesofHerbertSpencerandJohnStuartMill,muchofwhichhegleanedfromreadinginpubliclibrariesandfromhisownpainstakinglyamassedlibrary.MarxwasyettobetranslatedintoEnglish.

Georgewasendowedforhisjob.Hewascuriousandhewasalertlyattentivetoallthatwentonaroundhim.Hehadthatrarestofallattributesinthescholarandhistorianthatgiftwithoutwhichalleducationisuseless.Hehadmotherwit.Hereadwhatheneededtoread,andheunderstoodwhatheread.Whatismore,hesawwhatwasbeforehiseyes,exactly,withtheclearvisionofanartistandtheappraisalofascientist.Andhewasfortunate.Helivedandworkedinarapidlydevelopingsocietyinwhichhisenvironmentchangeddaily.Georgehadtheuniqueopportunityofstudyingtheformationofacivilization—thechangeofanencampmentintoathrivingmetropolis.Hesawacityoftentsandmudchangeintoafinetownofpavedstreetsanddecenthousing,withtramwaysandbuses.Andashesawthebeginningofwealth,henotedthefirstappearanceofpauperism.Hesawthecomingof

thefirstbeggarstheWesthadeverknowninitsentirehistory.Hesawdegradationformingashesawtheadventofleisureandaffluence.Itwashispersonalcharacteristicthathefeltcompelledtodiscoverwhytheyaroseconcurrently.

Theresultofhisinquiry,PROGRESSANDPOVERTY,iswrittensimply,butsobeautifullythatithasbeencomparedtotheverygreatestworksoftheEnglishlanguage.Indeed,therearepagesthatcannotbebetteredforeloquence,forsparklingimagery,andforsound—thatlovelypoeticsoundoftheEnglishlanguagebeautifullyspoken.Healwayshadthissuperbgift.Hissea-logatfourteencompareswiththestyleofJosephConrad.

Becausehewastotallyunknown,noonewouldprinthisbook.Andsoheandhisfriends,alsoprinters,setthetypethemselvesandranoffanauthor'seditionwhicheventuallyfounditswayintothehandsofaNewYorkpublisher,D.Appleton&Co.AnEnglisheditionsoonfollowedwhicharousedenormousInterest.AlfredRusselWallace,theEnglishscientistandwriter,pronouncedit"themostremarkableandimportantbookofthepresentcentury."ItwasnotlongbeforeGeorgewasknowninternationally.

Duringhislifetime,hebecamethethirdmostfamousmanintheUnitedStates,onlysurpassedinpublicacclaimbyThomasEdisonandMarkTwain.Georgewastranslatedintoalmosteverylanguagethatknewprint,andsomeofthegreatest,mostinfluentialthinkersofhistimepaidtribute.LeoTolstoy'sappreciationstressedthelogicofGeorge'sexposition:"ThechiefweaponagainsttheteachingofHenryGeorgewasthatwhichisalwaysusedagainstirrefutableandself-evidenttruths.Thismethod,whichisstillbeingappliedinrelationtoGeorge,wasthatofhushingup....PeopledonotarguewiththeteachingofGeorge,theysimplydonotknowit."JohnDeweyferventlystressedtheoriginalityofGeorge'ssystemofideas,statingthat,

"HenryGeorgeisoneofasmallnumberofdefinitelyoriginalsocialphilosophersthattheworldhasproduced."InanotherappreciationDeweysaidthat"Itwouldrequirelessthanthefingersofthetwohandstoenumeratethosewho,fromPlatodown,rankwithHenryGeorgeamongtheworld'ssocialphilosophers."AndBernardShaw,inalettertomymother,AnnaGeorge,yearslaterwrote,"Yourfatherfoundmealiterarydilettanteandmilitantrationalistinreligion,andabarrenrascalatthat.Byturningmymindtoeconomicshemadeamanofme......

Inevitablyhewasreviledaswellasidolized.Themenwhobelievedinwhatheadvocatedcalledthemselvesdisciples,andtheywereinfactnothingless:workingtothedeath,proclaiming,advocating,haranguing,andproselytizingtheidea,andeven,whenlackinginspiredleadership,becomingfanaticallyfoolishsothatthemovementwhichtouchedgreatnessbegantofounder.Itwasnotimplementedbyblood,aswascommunism,andsowasnotforcedonpeople'sattention.ShortlyafterGeorge'sdeath,itdroppedoutofthepoliticalfield.Onceabadgeofhonor,thetitle,"SingleTaxer,"cameintogeneraldisuse.ExceptinAlberta(therichestandmostprosperousprovinceofCanada)andinAustraliaandNewZealand,hisplanofsocialactionhasbeenneglectedwhilethoseofMarx,Keynes,GalbraithandFriedmanhavewongreatattention,andMarx'shasbeengivenpartialimplementation,foratime,atleast,inlargeareasoftheglobe.

Butnothingthathasbeentriedsatisfies.We,thepeople,thewholepeople,arelockedinadeathgrappleandnothingourleadersoffer,orarewillingtooffer,mitigatesourtroubles.Georgesaid,"Thepeoplemustthinkbecausethepeoplealonecanact."

Wehavereachedthedeplorablecircumstancewhereinlarge

measureaverypowerfulfewareinpossessionoftheearth'sresources,thelandanditsrichesandallthefranchisesandotherprivilegesthatyieldareturn.Thesemonopolisticpositionsarekeptbyahandfulofmenwhoaremaintainedvirtuallywithouttaxation;theyareimmunetothedemandsmadeonothers.Theverypoor,whohavenothing,aretheobjectofcompulsorycharity.Andtherest—theworkers,themiddle-class,thebackboneofthecountry—aremadetosupportthelotbytheirlabor.Theyaremadetopayforthemeninpossessionwhoare,ineffect,theirrulers,andforthepauperswhoaredeniedtheopportunityanddignityofearningtheirownliving.Forcingonegrouptopayforallamountstotyranny.

Wearetaxedateverypointofourlives,oneverythingweearn,oneverythingwesave,onmuchthatweinherit,onmuchthatwebuyateverystageofthemanufactureandonthefinalpurchase.Thetaxesarepunishing,crippling,demoralizing.Alsotheyare,toagreatextent,unnecessary.

ItwasrageatunjustandproliferatingtaxationthatdrovethepeopleofCaliforniatorevolt.InJune,1978,theyvotedoverwhelminglytoadoptProposition13,anamendmenttothestateconstitutionwhichwouldgreatlydiminishalltaxesonrealproperty—onland,houses,gardens,farms,buildings.Thiswasneitherathoughtfulnorasearchingreformsincetheimprovementsandthesiteandallnaturalresourceswerelumpedtogether,andincomeandsalestaxrateswerenotseparated.Undertheso-calledreform,thegreatlandholdingsremainedintactandthereforethegreatprofiteeringuntouched.

Thevotersbelievedthattherewastoomuchwastageingovernment,toomuchpublicwelfare,andthattheycoulddoverywellwithagreatdeallessofboth.Theresultssofarhavenotbeenwhatwasintended.Statefundswillundoubtedlybe

commandeeredtobailoutlocaltreasuriesandprobablythestatefundingofschools,universities,libraries,symphonyorchestras,museumsandarchiveswillbedrasticallyreducedwhilethebureaucracyandwelfareremainrelativelyuntouched.Buttherehasbeenanamountofseriousthinkingandifthischangedoesnotworkthemiraclesthatpeoplehope(anditwon't)atleastitwillcausethemtostudytheproblemsthoughtfully.Theelectorateis,atlonglast,beginningtoaskquestions.Inthissense,theadventurehasbeenofvalue.

Butoursystem,inwhichstateandfederaltaxesareinterlocked,isdeeplyintrenchedandhardtocorrect.Moreover,itsurvivesbecauseitisbasedonbewilderment;itismaintainedinamannersobizarreandintricatethatitisimpossiblefortheordinarycitizentoknowwhatheoweshisgovernmentexceptwithhighlypaidhelp.ContrarytobasicAmericanlawwhichpresupposesinnocenceuntilguiltisproven,thegovernmentnowtakesforgrantedthateveryAmericancitizenislyingandcheatingateveryturnandhemustpayanadvocatetopersuadethedulyelectedauthoritythatheisneitheraliarnorcheat.Itcomestothis:wesupportalargesectionofourgovernment(theInternalRevenueService)toprovethatwearebreakingourownlaws.Andwesupportalargeprofession(taxlawyers)toprotectusfromourownemployees.Collegecoursesaregiventoexplainthetaxformswhichwouldotherwisebequiteunintelligible.

Allthisisgallinganddestructive,butitisstill,inameasure,superficial.Thegreatsinisterfact,theonethatwemustlivewith,isthatweareyieldingupsovereignty.Thenationisnolongercomprisedofthethirteenoriginalstates,norofthethirty-sevenyoungersisterstates,butoftherealpowers:thecartels,thecorporations.Owningthebulkofourproductiveresources,theyaretheissueofthatconcentrationofownershipthatGeorgesawevolving,andwarnedagainst.

ThesemultinationalsarenotAmericananymore.Transcendingnations,theyservenottheircountry'sinterests,buttheirown.Theymanipulateourtaxpoliciestohelpthemselves.Theydetermineourstatecraft.Theyareautonomous.Theydonotneedtocoinmoneyorraisearmies.Theyuseours.

Andinoppositionriseupthegreatlaborunions.Itiswar.Inthemeantime,thebureaucracy,bothfederalandlocal,supportedbythedeadlyopposingfactions,legislatethemselvesmountingpowerneveroriginallyintendedforourgovernmentandexertaubiquitousinfluencewhichcanbe,andoftenis,corrupt.

Idonotwishtobemisunderstoodasfallingintothetrapofthesocialistsandcommunistswhocondemnallprivatelyownedbusiness,allfactories,allmachineryandorganizationsforproducingwealth.Thereisnothingwrongwithprivatecorporationsowningthemeansofproducingwealth,with,asthesocialistswouldsay,Capitalism.AllGeorgistsbelieveinprivateenterprise,andinitsvirtuesandincentivestoproduceatmaximumefficiency.Itistheinsidiouslinkingtogetherofspecialprivilege,theunjustoutrightprivateownershipofnaturalorpublicresources,monopolies,franchises,thatproduceunfairdominationandautocracy.Themeansofproducingwealthdifferattheroot,someisthievedfromthepeopleandsomeishonestlyearned.Georgedifferentiated;Marxdidnot.Theconsequencesofourfailuretodiscernlieattheheartofourtrouble.

Thisclowncivilizationisours.Wehaveachieveditoutofthehopefulagrariansocietythatflourishedintheeighteenthcentury,outofanewgovernmentwehadeveryrighttobelievewasfoundedonreasonableness,wisdomandjustice.Wewerenotcompelledtocometothis.Weknewneitherkingnorconqueror.Wechosethisofourownfreewill,inourownfreedemocracy,withallthemeanstolegislateintelligentlyreadilyathand.We

chosethisbecauseweinsistedonfollowingtheworn-outEuropeangrooves,becauseitsuitedafewpeopletohaveusdoso.Theycountedonourmentalindolenceandwefreelyandobedientlyconformed.Wechosenottothink.

Ourgovernment,alas,waspredicatedforitseffectivenessinexpansiononfreeland.Nowthereisnomorefreeland,andtheflawinthegreatplangrowsevident.Wehavereachedtheboundariesandweturnbackonourselvesanddevour.

HenryGeorgewasalucidvoice,directandbold,thatpointedoutbasictruths,thatcutthroughtheconfusionwhichdevelopedlikerot.Eachagehasknownsuchdiseasesandeachagehasgonedownforlackofunderstanding.Itisnotvalidtosaythatourtimesaremorecomplexthanagespastandthereforethesolutionmustbemorecomplex.Theproblemsare,onthewhole,thesame.ThefactthatwenowhaveelectricityandcomputersdoesnotinanywaycontrovertthefactthatwecansuccumbtotheinjusticesthattoppledRome.

Toavertsuchacalamity,toeliminateinvoluntarypovertyandunemployment,andtoenableeachindividualtoattainhismaximumpotential,Georgewrotethisextraordinarytreatiseahundredyearsago.Hisideasstand:hewhomakesshouldhave;hewhosavesshouldenjoy;whatthecommunityproducesbelongstothecommunityforcommunaluses;andGod'searth,allofit,istherightofthepeoplewhoinhabittheearth.InthewordsofThomasJefferson,"Theearthbelongsinusufructtotheliving."

Thisissimpleandthisisunanswerable.Theramificationsmaynotbesimplebuttheydonotalterthefundamentallogic.

Thereneverhasbeenatimeinourhistorywhenwehaveneededsosorelytoheargoodsense,tolearntodefinetermsexactly,to

drawreasonableconclusions.Weneedsmust,orperish.AsGeorgesaid,"ThetruththatIhavetriedtomakeclearwillnotfindeasyacceptance.Ifthatcouldbe,itwouldhavebeenacceptedlongago.Ifthatcouldbe,itwouldneverhavebeenobscured."

Weareonthebrink.ItispossibletohaveanotherDarkAges.ButinGeorgethereisavoiceofhope.

AgnesGeorgedeMille

NewYork,January,1979

AgnesGeorgedeMilleisthegranddaughterofHenryGeorge.SheisfamousinherownrightasachoreographerandthefounderoftheAgnesdeMilleHeritageDanceTheater,andsheisarecipientoftheHandelMedallion,NewYork'shighestawardforachievementinthearts.Sheistheauthorofthirteenbooks.

[BacktoTableofContents]

Theremustberefuge!Men

Perishedinwinterwindstillonesmotefire

Fromflintstoneseoldlyhidingwhattheyheld,

Theredsparktreasuredfromthekindlingsun;

Theygorgedonfleshlikewolves,tillonesowedcorn,

Whichgrewaweed,yetmakesthelifeofman;

Theymowedandbabbledtillsometonguestruckspeech,

Andpatientfingersframedtheletteredsound.

Whatgoodgifthavemybrothers,butitcame

Fromsearchandstrifeandlovingsacrificer

~EdwinArnold.

Neveryet

ShareofTruthwasvainlyset

Intheworld’swidefallow;

Afterhandsshallsowtheseed,

Afterhands,fromhillandmead,

Reaptheharvestsyellow.

~Whiter.

[BacktoTableofContents]

IntroductiontotheTwenty-FifthAnniversaryEditionof"ProgressAndPoverty"

THEFAMEWONBYHENRYGEORGEaswriter,economistandphilosopher,hasnotdiminishedwiththeyearsthathavepassedsincehisdeathin1897.Onthecontrary,therehasbeenasteadilybroadeningrecognitionofhisintellectualeminence.SignificantofthiswastherecentAppreciationbyJohnDewey,thefamousAmericaneducatorandprofessorofphilosophyatColumbiaUniversity,whichcontainedthesestrikingstatements:

"Itwouldrequirelessthanthefingersofthetwohandstoenumeratethosewho,fromPlatodown,rankwithHenryGeorgeamongtheworld'ssocialphilosophers....Noman,nograduateofahighereducationalinstitution,hasarighttoregardhimselfasaneducatedmaninsocialthoughtunlesshehassomefirsthandacquaintancewiththetheoreticalcontributionofthisgreatAmericanthinker."

Inthisfiftiethyearafterthefirstpublicationof"ProgressandPoverty"itmustappeartothatgrowingbodyofworkersforsocialjusticewhoinmanylandsarespreadingGeorge'sgospel,thatthereisatthistimeasgreataneedaseverforthecomprehensionofthetruthhesoughttomakeplain.For,asin1879,thereif,widespreadsocialunrestintheworld.Industrialdepressionandunemploymentareconditionscommontomanylands,andeveninthenominallyprosperousatmosphereoftheUnitedStates,vastnumbersarecompelledtoliveinpovertyorclosetoitsborderline.Itwouldappearthatinthehalfcenturysince"ProgressandPoverty"waspublished,therehasbeenlittleabatementofthesocialandeconomicillsthathaveafflictedthehumanfamilyeverywhere,andthatrecur,withunfailingregularity,incycles

thatseemunexplainableexcepttothefollowersofHenryGeorge.And,atatimewhenworldopinionisdemandingthatstatesmanshipshalloutlawwar,itisimportanttorecallthattheWorldEconomicConference,heldatGenevain1927atthecalloftheLeagueofNations,foundadefiniteinterdependenceoftheeconomiccausesofwarandindustrialdepression.ItseemslikeavindicationofthephilosophyofHenryGeorgetofindthatthisConference,towhichtherepresentativesoffiftynationswerecalled,unanimouslyarrivedattheconclusionthat:

"Themaintroublenowisneitheranymaterialshortageoftheresourcesofnaturenoranyinadequacyinman'spowertoexploitthem.Itisall,inoneformoranother,amaladjustment;notaninsufficientproductivecapacity,butaseriesofimpedimentstothefullutilizationofthatcapacity.Themainobstaclestoeconomicrevivalhavebeenthehindrancesopposedtothefreeflowoflabor,capital,andgoods."

This,ineffect,iswhatHenryGeorgemaintainedfiftyyearsago,contrarytotheteachingsoftheacceptedpoliticaleconomy.

Greaterneedthaneverexistsforare-examinationbymankindoftheremedyfortheworld'ssocialandeconomicillsthatisinvolvedinthefundamentalproposalsofHenryGeorge-proposalswhichTolstoydeclaredmustultimatelybeacceptedbytheworldbecausetheyaresologicalandsounanswerable.

Therefore,thetrusteesoftheRobertSchalkenbachFoundation,ofNewYork,whichwasformedtobringaboutawideracquaintancewiththesocialandeconomicphilosophyofHenryGeorge,haveconsideredthisanappropriatetimetoproducefromnewplatesthisFiftiethAnniversaryEditionof"ProgressandPoverty."

HOWTHEBOOKCAMETOBEWRITTEN

IntheIntroductiontotheTwenty-fifthAnniversaryEdition,HenryGeorge,Jr.toldinterestingly,asfollows,how"ProgressandPoverty"cametobewritten:

OutoftheopenWestcameayoungmanoflessthanthirtytothisgreatcityofNewYork.Hewassmallofstatureandslightofbuild.Hisalmamaterhadbeentheforecastleandtheprinting-office.Hewaspoor,unheralded,unknown.Hecamefromasmallcityrisingatthewesterngoldenportalsofthecountrytosetuphere,forastrugglinglittlenewspaperthere,atelegraphicnewsbureau,despitetheoppositionofthecombinedpowerfulpressandtelegraphmonopolies.Thestrugglewastoounequal.Theyoungmanwasoverbornebythemonopoliesandhislittlepapercrushed.

ThismanwasHenryGeorgeandthetimewas1869.

Butthoughdefeated,HenryGeorgewasnotvanquished.Outofthisstrugglehadcomeathingthatwastogrowandgrowuntilitshouldfillthemindsandheartsofmultitudesandbeas"anarmywithbanners."

Forintheintervalsofrestfromhisnewspaperstruggleinthiscitytheyoungcorrespondenthadmusinglywalkedthestreets.Ashewalkedhewasfilledwithwonderatthemanifestationsofvastwealth.Here,asnowherethathehaddreamedof,wereprivatefortunesthatrivaledtherichesofthefabledMonteCristo.Buthere,also,sidebysidewiththepalacesoftheprincelyrich,wastobeseenapovertyanddegradation,awantandshame,suchasmadetheyoungmanfromtheopenWestsickatheart.

Whyinalandsobountifullyblest,withenoughandmorethanenoughforall,shouldtherebesuchinequalityofconditions?Suchheapedwealthinterlockedwithsuchdeepanddebasing

want?Why,amidsuchsuperabundance,shouldstrongmenvainlylookforwork?Whyshouldwomenfaintwithhunger,andlittlechildrenspendthemorningoflifeinthetreadmilloftoil?

Wasthisintendedintheorderofthings?No,hecouldnotbelieveit.Andsuddenlytherecametohimthereindaylight,inthecitystreet—aburningthought,acall,avision.Everynervequivered.Andhemadeavowthathewouldneverrestuntilhehadfoundthecauseof,and,ifhecould,theremedyfor,thisdeepeningpovertyamidadvancingwealth.

ReturningtoSanFranciscosoonafterhistelegraphicnewsfailure,andkeepinghisvownurturedinhisheart,HenryGeorgeperceivedthatlandspeculationlockedupvastterritoriesagainstlabor.Everywhereheperceivedaneffortto"corner"land;anefforttogetitandtoholdit,notforuse,butfora"rise."Everywhereheperceivedthatthiscausedallwhowishedtouseittocompetewitheachotherforit;andheforesawthataspopulationgrewthekeenerthatcompetitionwouldbecome.Thosewhohadamonopolyofthelandwouldpracticallyownthosewhohadtousetheland.

Filledwiththeseideas,HenryGeorgein1871satdownandinthecourseoffourmonthswrotealittlebookundertitleof"OurLandandLandPolicy."Inthatsmallvolumeofforty-eightpagesheadvocatedthedestructionoflandmonopolybyshiftingalltaxesfromlaborandtheproductsoflaborandconcentratingtheirinonetaxonthevalueofland,regardlessofimprovements.Athousandcopiesofthissmallbookwereprinted,buttheauthorquicklyperceivedthatreallytocommandattention,theworkwouldhavetobedonemorethoroughly.

Thatmorethoroughworkcamesomethingmorethansixyearslater.InAugust,1877,thewritingof"ProgressandPoverty"was

begun.Itwastheoakthatgrewoutoftheacornof"OurLandandLandPolicy."Thelargerbookbecame"aninquiryintoindustrialdepressionsandofincreaseofwantwithincreaseofwealth,"andpointedouttheremedy.

Thebookwasfinishedafterayearandsevenmonthsofintenselabor,andtheundergoingofprivationsthatcausedthefamilytodowithoutaparlorcarpet,andwhichfrequentlyforcedtheauthortopawnhispersonaleffects.

Andwhenthelastpagewaswritten,inthedeadofnight,whenhewasentirelyalone,HenryGeorgeflunghimselfuponhiskneesandweptlikeachild.Hehadkepthisvow.TherestwasintheMaster'shands.

ThenthemanuscriptwassenttoNewYorktofindapublisher.Someofthepublisherstherethoughtitvisionary;some,revolutionary.Mostofthemthoughtitunsafe,andallthoughtthatitwouldnotsell,oratleastsufficientlytorepaytheoutlay.Worksonpoliticaleconomyevenbymenofrenownwerenotoriouslynotmoney-makers.Whathopethenforaworkofthisnaturefromanobscureman-unknown,andwithoutprestigeofanykind?Atlength,however,D.Appleton&Co.saidtheywouldpublishitiftheauthorwouldbearthemaincost,thatofmakingtheplates.Therewasnothingelseforit,andsoinorderthattheplate-makingshouldbedoneunderhisowndirectionHenryGeorgehadthetypesetinafriend'sprinting-officeinSanFrancisco,theauthorofthebooksettingthefirsttwostickfulshimself.

Beforetheplates,madefromthistype,wereshippedEast,theywereputuponaprinting-pressandail"Author'sProofEdition"offivehundredcopieswasstruckoff.OneofthesecopiesHenryGeorgesenttohisvenerablefatherinPhiladelphia,eighty-one

yearsold.Atthesametimethesonwrote:

ItiswithdeepfeelingofgratitudetoOurFatherinHeaventhatIsendyouaprintedcopyofthisbook.IamgratefulthatIhavebeenenabledtolivetowriteit,andthatyouhavebeenenabledtolivetoseeit.Itrepresentsagreatdealofworkandagooddealofsacrifice,butnowitisdone.Itwillnotberecognizedatfirst—maybenotforsometime—butitwillultimatelybeconsideredagreatbook,willbepublishedinbothhemispheres,andbetranslatedintodifferentlanguages.ThisIknow,thoughneitherofusmayeverseeithere.ButthebeliefthatIhaveexpressedinthisbook—thebeliefthatthereisyetanotherlife,forus—makesthatoflittlemoment.

Theprophecyofrecognitionofthebook'sgreatnesswasfulfilledveryquickly.TheAppletonsinNewYorkbroughtoutthefirstregularmarketeditioninJanuary,1880,justtwenty-fiveyearsago.CertainoftheSanFrancisconewspapersderidedbookandauthorasthe"hobby"of"littleHarryGeorge,"andpredictedthattheworkwouldneverbeheardof.Butthepresselsewhereinthecountryandabroad,fromtheold"Thunderer"inLondondown,andthegreatperiodicalpublications,headedbythe"EdinburghReview,"haileditasaremarkablebookthatcouldnotbelightlybrushedaside.IntheUnitedStatesandEnglanditwasputintocheappapereditions,andinthatformoutsoldthemostpopularnovelsoftheday.Inbothcountries,too,itranseriallyinthecolumnsofnewspapers.IntoallthechieftonguesofEuropeitwastranslated,therebeingthreetranslationsintoGerman.Probablynoexactstatementofthebook'sextentofpublicationcanbemade;butaconservativeestimateisthat,embracingallformsandlanguages,morethantwomillioncopiesof"ProgressandPoverty"havebeenprintedtodate;andthatincludingwiththesetheotherbooksthathavefollowedfromHenryGeorge'spen,andwhichmightbecalled"TheProgressandPovertyLiterature,"

perhapsfivemillioncopieshavebeengiventotheworld.

HENRYGEORGE,JR.NewYork,January24,1905.

[BacktoTableofContents]

PrefacetoFourthEdition

PrefacetotheFourthEdition--1880

THEVIEWSHEREINSETFORTHwereinthemainbrieflystatedinapamphletentitled"OurLandandLandPolicy,"publishedinSanFranciscoin1871.Ithenintended,assoonasIcould,topresentthemmorefully,buttheopportunitydidnotforalongtimeoccur.InthemeanwhileIbecameevenmorefirmlyconvincedoftheirtruth,andsawmorecompletelyandclearlytheirrelations;andIalsosawhowmanyfalseideasanderroneoushabitsofthoughtstoodinthewayoftheirrecognition,andhownecessaryitwastogooverthewholeground.

ThisIhaveheretriedtodo,asthoroughlyasspacewouldpermit.IthasbeennecessaryformetoclearawaybeforeIcouldbuildup,andtowriteatonceforthosewhohavemadenopreviousstudyofsuchsubjects,andforthosewhoarefamiliarwitheconomicreasoning;and,sogreatisthescopeoftheargumentthatithasbeenimpossibletotreatwiththefullnesstheydeservemanyofthequestionsraised.WhatIhavemostendeavoredtodoistoestablishgeneralprinciples,trustingtomyreaderstocarryfurthertheirapplicationswherethisisneeded.

Incertainrespectsthisbookwillbebestappreciatedbythosewhohavesomeknowledgeofeconomicliterature—butnopreviousreadingisnecessarytotheunderstandingoftheargumentorthepassingofjudgmentuponitsconclusions.ThefactsuponwhichIhavereliedarenotfactswhichcanonlybeverifiedbyasearchthroughlibraries.Theyarefactsofcommonobservationandcommonknowledge,whicheveryreadercanverifyforhimself,justashecandecidewhetherthereasoningfromthemisorisnot

valid.

Beginningwithabriefstatementoffactswhichsuggestthisinquiry,Iproceedtoexaminetheexplanationcurrentlygiveninthenameofpoliticaleconomyofthereasonwhy,inspiteoftheincreaseofproductivepower,wagestendtotheminimumofabareliving.Thisexaminationshowsthatthecurrentdoctrineofwagesisfoundeduponamisconception;that,intruth,wagesareproducedbythelaborforwhichtheyarepaid,andshould,otherthingsbeingequal,increasewiththenumberoflaborers.Heretheinquirymeetsadoctrinewhichisthefoundationandcenterofmostimportanteconomictheories,andwhichhaspowerfullyinfluencedthoughtinalldirections—theMalthusiandoctrine,thatpopulationtendstoincreasefasterthansubsistence.Examination,however,showsthatthisdoctrinehasnorealsupporteitherinfactorinanalogy,andthatwhenbroughttoadecisivetestitisutterlydisproved.

Thusfartheresultsoftheinquiry,thoughextremelyimportant,aremainlynegative.Theyshowthatcurrenttheoriesdonotsatisfactorilyexplaintheconnectionofpovertywithmaterialprogress,butthrownolightupontheproblemitself,beyondshowingthatitssolutionmustbesoughtinthelawswhichgovernthedistributionofwealth.Itthereforebecomesnecessarytocarrytheinquiryintothisfield.Apreliminaryreviewshowsthatthethreelawsofdistributionmustnecessarilycorrelatewitheachother,whichaslaiddownbythecurrentpoliticaleconomytheyfailtodo,andanexaminationoftheterminologyinuserevealstheconfusionofthoughtbywhichthisdiscrepancyhasbeenslurredover.Proceedingthentoworkoutthelawsofdistribution,Ifirsttakeupthelawofrent.This,itisreadilyseen,iscorrectlyapprehendedbythecurrentpoliticaleconomy.Butitisalsoseenthatthefullscopeofthislawhasnotbeenappreciated,andthatitinvolvesascorollariesthelawsofwagesandinterest—thecause

whichdetermineswhatpartoftheproduceshallgototheland-ownernecessarilydeterminingwhatpartshallbeleftforlabor—andcapital.Withoutrestinghere,Iproceedtoanindependentdeductionofthelawsofinterestandwages.Ihavestoppedtodeterminetherealcauseandjustificationofinterest,andtopointoutasourceofmuchmisconception—theconfoundingofwhatarereallytheprofitsofmonopolywiththelegitimateearningsofcapital.Thenreturningtothemaininquiry,investigationshowsthatinterestmustriseandfallwithwages,anddependsultimatelyuponthesamethingasrent—themarginofcultivationorpointinproductionwhererentbegins.Asimilarbutindependentinvestigationofthelawofwagesyieldssimilarharmoniousresults.Thusthethreelawsofdistributionarebroughtintomutualsupportandharmony,andthefactthatwithmaterialprogressrenteverywhereadvancesisseentoexplainthefactthatwagesandinterestdonotadvance.

Whatcausesthisadvanceofrentisthenextquestionthatarises,anditnecessitatesanexaminationoftheeffectofmaterialprogressuponthedistributionofwealth.Separatingthefactorsofmaterialprogressintoincreaseofpopulationandimprovementsinthearts,itisfirstseenthatincreaseinpopulationtendsconstantly,notmerelybyreducingthemarginofcultivation,butbylocalizingtheeconomiesandpowerswhichcomewithincreasedpopulation,toincreasetheproportionoftheaggregateproducewhichistakeninrent,andtoreducethatwhichgoesaswagesandinterest.Theneliminatingincreaseofpopulation,itisseenthatimprovementinthemethodsandpowersofproductiontendsinthesamedirection,and,landbeingheldasprivateproperty,wouldproduceinastationarypopulationalltheeffectsattributedbytheMalthusiandoctrinetopressureofpopulation.Andthenaconsiderationoftheeffectsofthecontinuousincreaseinland-valueswhichthusspringsfrommaterialprogressrevealsinthespeculativeadvanceinevitablybegottenwhenlandis

privatepropertyaderivativebutmostpowerfulcauseoftheincreaseofrentandthecrowdingdownofwages.Deductionshowsthatthiscausemustnecessarilyproduceperiodicalindustrialdepression,andinductionprovestheconclusion;whilefromtheanalysiswhichhasthusbeenmadeitisseenthatthenecessaryresultofmaterialprogress,landbeingprivateproperty,is,nomatterwhattheincreaseinpopulation,toforcelaborerstowageswhichgivebutabareliving.

Thisidentificationofthecausethatassociatespovertywithprogresspointstotheremedy,butitistosoradicalaremedythatIhavenextdeemeditnecessarytoinquirewhetherthereisanyotherremedy.Beginningtheinvestigationagainfromanotherstartingpoint,Ihavepassedinexaminationthemeasuresandtendenciescurrentlyadvocatedortrustedinfortheimprovementoftheconditionofthelaboringmasses.Theresultofthisinvestigationistoprovetheprecedingone,asitshowsthatnothingshortofmakinglandcommonpropertycanpermanentlyrelievepovertyandcheckthetendencyofwagestothestarvation-point.

Thequestionofjusticenownaturallyarises,andtheinquirypassesintothefieldofethics.Aninvestigationofthenatureandbasisofpropertyshowsthatthereisafundamentalandirreconcilabledifferencebetweenpropertyinthingswhicharetheproductoflaborandpropertyinland;thattheonehasanaturalbasisandsanctionwhiletheotherhasnone,andthattherecognitionofexclusivepropertyinlandisnecessarilyadenialoftherightofpropertyintheproductsoflabor.Furtherinvestigationshowsthatprivatepropertyinlandalwayshas,andalwaysmust,asdevelopmentproceeds,leadtotheenslavementofthelaboringclass;thusland-ownerscanmakenojustclaimtocompensationifsocietychoosetoresumeitsright;thatsofarfromprivatepropertyinlandbeinginaccordancewiththenaturalperceptions

ofmen,theveryreverseistrue,andthatintheUnitedStateswearealreadybeginningtofeeltheeffectsofhavingadmittedthiserroneousanddestructiveprinciple.

Theinquirythenpassestothefieldofpracticalstatesmanship.Itisseenthatprivatepropertyinland,insteadofbeingnecessarytoitsimprovementanduse,standsinthewayofimprovementanduse,andentailsanenormouswasteofproductiveforces;thattherecognitionofthecommonrighttolandinvolvesnoshockordispossession,butistobereachedbythesimpleandeasymethodofabolishingalltaxationsavethatuponland-values.Andthisaninquiryintotheprinciplesoftaxationshowstobe,inallrespects,thebestsubjectoftaxation.

Aconsiderationoftheeffectsofthechangeproposedthenshowsthatit

wouldenormouslyincreaseproduction;

wouldsecurejusticeindistribution;

wouldbenefitallclasses;and

wouldmakepossibleanadvancetoahigherandnoblercivilization.

Theinquirynowrisestoawiderfield,andrecommencesfromanotherstarting-point.Fornotonlydothehopeswhichhavebeenraisedcomeintocollisionwiththewidespreadideathatsocialprogressisonlypossiblebyslowraceimprovement,buttheconclusionswehavearrivedatassertcertainlawswhich,iftheyarereallynaturallaws,mustbemanifestinuniversalhistory.Asafinaltest,itthereforebecomesnecessarytoworkoutthelawofhumanprogress,forcertaingreatfactswhichforcethemselveson

ourattentionassoonaswebegintoconsiderthissubject,seemutterlyinconsistentwithwhatisnowthecurrenttheory.Thisinquiryshows

thatdifferencesincivilizationarenotduetodifferencesinindividuals,butrathertodifferencesinsocialorganization;

thatprogress,alwayskindledbyassociation,alwayspassesintoretrogressionasinequalityisdeveloped;and

thatevennow,inmoderncivilization,thecauseswhichhavedestroyedallpreviouscivilizationsarebeginningtomanifestthemselves,and

thatmerepoliticaldemocracyisrunningitscoursetowardanarchyanddespotism.

Butitalsoidentifiesthelawofsociallifewiththegreatmorallawofjustice,and,provingpreviousconclusions,showshowretrogressionmaybepreventedandagranderadvancebegun.

Thisendstheinquiry.Thefinalchapterwillexplainitself.

Thegreatimportanceofthisinquirywillbeobvious.Ifithasbeencarefullyandlogicallypursued,itsconclusionscompletelychangethecharacterofpoliticaleconomy,giveitthecoherenceandcertitudeofatruescience,andbringitintofullsympathywiththeaspirationsofthemassesofmen,fromwhichithaslongbeenestranged.WhatIhavedoneinthisbook,ifIhavecorrectlysolvedthegreatproblemIhavesoughttoinvestigate,is,tounitethetruthperceivedbytheschoolofSmithandRicardotothetruthperceivedbytheschoolofProudhonandLasalle;toshowthatlaissezfaire(initsfulltruemeaning)opensthewaytoarealizationofthenobledreamsofsocialism;toidentifysociallaw

withmorallaw,andtodisproveideaswhichinthemindsofmanycloudgrandandelevatingperceptions.

ThisworkwaswrittenbetweenAugust,1877,andMarch,1879,andtheplatesfinishedbySeptemberofthatyear.Sincethattimenewillustrationshavebeengivenofthecorrectnessoftheviewshereinadvanced,andthemarchofevents-andespeciallythatgreatmovementwhichhasbeguninGreatBritainintheIrishlandagitation-showsstillmoreclearlythepressingnatureoftheproblemIhaveendeavoredtosolve.Buttherehasbeennothinginthecriticismstheyhavereceivedtoinducethechangeormodificationoftheseviews—infact,Ihaveyettoseeanobjectionnotansweredinadvanceinthebookitself.Andexceptthatsomeverbalerrorshavebeencorrectedandaprefaceadded,thiseditionisthesameaspreviousones.

HenryGeorge

NewYork,November,1880

[BacktoTableofContents]

IntroductoryTheProblem

Yebuild!yebuild!butyeenternotin,Likethetribeswhomthedesertdevouredintheirsin;Fromthelandofpromiseyefadeanddie,Ereitsverduregleamsforthonyourweariedeye.

—Mrs.Sigourney

IntroductoryTheProblem

Thepresentcenturyhasbeenmarkedbyaprodigiousincreaseinwealth-producingpower.Theutilizationofsteamandelectricity,theintroductionofimprovedprocessesandlabor-savingmachinery,thegreatersubdivisionandgranderscaleofproduction,thewonderfulfacilitationofexchanges,havemultipliedenormouslytheeffectivenessoflabor.

Atthebeginningofthismarvelouseraitwasnaturaltoexpect,anditwasexpected,thatlabor-savinginventionswouldlightenthetoilandimprovetheconditionofthelaborer;thattheenormousincreaseinthepowerofproducingwealthwouldmakerealpovertyathingofthepast.Couldamanofthelastcentury—aFranklinoraPriestly—haveseen,inavisionofthefuture,thesteamshiptakingtheplaceofthesailingvessel,therailroadtrainofthewagon,thereapingmachineofthescythe,thethreshingmachineoftheflail;couldhehaveheardthethroboftheenginesthatinobediencetohumanwill,andforthesatisfactionofhumandesire,exertapowergreaterthanthatofallthemenandallthe

beastsofburdenoftheearthcombined;couldhehaveseentheforesttreetransformedintofinishedlumber—intodoors,sashes,blinds,boxesorbarrels,withhardlythetouchofahumanhand;thegreatworkshopswherebootsandshoesareturnedoutbythecasewithlesslaborthantheold-fashionedcobblercouldhaveputonasole;thefactorieswhere,undertheeyeofagirl,cottonbecomesclothfasterthanhundredsofstalwartweaverscouldhaveturneditoutwiththeirhandlooms;couldhehaveseensteamhammersshapingmammothshaftsandmightyanchors,anddelicatemachinerymakingtinywatches;thediamonddrillcuttingthroughtheheartoftherocks,andcoaloilsparingthewhale;couldhehaverealizedtheenormoussavingoflaborresultingfromimprovedfacilitiesofexchangeandcommunication—sheepkilledinAustraliaeatenfreshinEngland,andtheordergivenbytheLondonbankerintheafternoonexecutedinSanFranciscointhemorningofthesameday;couldhehaveconceivedofthehundredthousandimprovementswhichtheseonlysuggest,whatwouldhehaveinferredastothesocialconditionofmankind?

Itwouldnothaveseemedlikeaninference;furtherthanthevisionwentitwouldhaveseemedasthoughhesaw;andhisheartwouldhaveleapedandhisnerveswouldhavethrilled,asonewhofromaheightbeholdsjustaheadofthethirst-strickencaravanthelivinggleamofrustlingwoodsandtheglintoflaughingwaters.Plainly,inthesightoftheimagination,hewouldhavebeheldthesenewforceselevatingsocietyfromitsveryfoundations,liftingtheverypoorestabovethepossibilityofwant,exemptingtheverylowestfromanxietyforthematerialneedsoflife;hewouldhaveseentheseslavesofthelampofknowledgetakingonthemselvesthetraditionalcurse,thesemusclesofironandsinewsofsteelmakingthepoorestlaborer’slifeaholiday,inwhicheveryhighqualityandnobleimpulsecouldhavescopetogrow.

Andoutofthesebounteousmaterialconditionshewouldhaveseenarising,asnecessarysequences,moralconditionsrealizingthegoldenageofwhichmankindhavealwaysdreamed.Youthnolongerstuntedandstarved;agenolongerharriedbyavarice;thechildatplaywiththetiger;themanwiththemuck-rakedrinkinginthegloryofthestars.Foulthingsfled,fiercethingstame;discordturnedtoharmony!Forhowcouldtherebegreedwhereallhadenough?Howcouldthevice,thecrime,theignorance,thebrutality,thatspringfrompovertyandthefearofpoverty,existwherepovertyhadvanished?Whoshouldcrouchwhereallwerefreemen;whooppresswhereallwerepeers?

Moreorlessvagueorclear,thesehavebeenthehopes,thesethedreamsbornoftheimprovementswhichgivethiswonderfulcenturyitspreëminence.Theyhavesunksodeeplyintothepopularmindasradicallytochangethecurrentsofthought,torecastcreedsanddisplacethemostfundamentalconceptions.Thehauntingvisionsofhigherpossibilitieshavenotmerelygatheredsplendorandvividness,buttheirdirectionhaschanged—insteadofseeingbehindthefainttingesofanexpiringsunset,allthegloryofthedaybreakhasdeckedtheskiesbefore.

Itistruethatdisappointmenthasfolloweddisappointment,andthatdiscoveryupondiscovery,andinventionafterinvention,haveneitherlessenedthetoilofthosewhomostneedrespite,norbroughtplentytothepoor.Buttherehavebeensomanythingstowhichitseemedthisfailurecouldbelaid,thatuptoourtimethenewfaithhashardlyweakened.Wehavebetterappreciatedthedifficultiestobeovercome;butnotthelesstrustedthatthetendencyofthetimeswastoovercomethem.

Now,however,wearecomingintocollisionwithfactswhichtherecanbenomistaking.Fromallpartsofthecivilizedworldcomecomplaintsofindustrialdepression;oflaborcondemnedto

involuntaryidleness;ofcapitalmassedandwasting;ofpecuniarydistressamongbusinessmen;ofwantandsufferingandanxietyamongtheworkingclasses.Allthedull,deadeningpain,allthekeen,maddeninganguish,thattogreatmassesofmenareinvolvedinthewords“hardtimes,”afflicttheworldto-day.Thisstateofthings,commontocommunitiesdifferingsowidelyinsituation,inpoliticalinstitutions,infiscalandfinancialsystems,indensityofpopulationandinsocialorganization,canhardlybeaccountedforbylocalcauses.Thereisdistresswherelargestandingarmiesaremaintained,butthereisalsodistresswherethestandingarmiesarenominal;thereisdistresswhereprotectivetariffsstupidlyandwastefullyhampertrade,butthereisalsodistresswheretradeisnearlyfree;thereisdistresswhereautocraticgovernmentyetprevails,butthereisalsodistresswherepoliticalpoweriswhollyinthehandsofthepeople;incountrieswherepaperismoney,andincountrieswheregoldandsilveraretheonlycurrency.Evidently,beneathallsuchthingsasthese,wemustinferacommoncause.

Thatthereisacommoncause,anthatitiseitherwhatwecallmaterialprogressorsomethingcloselyconnectedwithmaterialprogress,becomesmorethananinferencewhenitisnotedthatthephenomenaweclasstogetherandspeakofasindustrialdepressionarebutintensificationsofphenomenawhichalwaysaccompanymaterialprogress,andwhichshowthemselvesmoreclearlyandstronglyasmaterialprogressgoeson.Wheretheconditionstowhichmaterialprogresseverywheretendsarethemostfullyrealized—thatistosay,wherepopulationisdensest,wealthgreatest,andthemachineryofproductionandexchangemosthighlydeveloped—wefindthedeepestpoverty,thesharpeststruggleforexistence,andthemostofenforcedidleness.

Itistothenewercountries—thatis,tothecountrieswherematerialprogressisyetinitsearlierstages—thatlaborers

emigrateinsearchofhigherwages,andcapitalflowsinsearchofhigherinterest.Itisintheoldercountries—thatistosay,thecountrieswherematerialprogresshasreachedlaterstages—thatwidespreaddestitutionisfoundinthemidstofthegreatestabundance.GointooneofthenewcommunitieswhereAnglo-Saxonvigorisjustbeginningtheraceofprogress;wherethemachineryofproductionandexchangeisyetrudeandinefficient;wheretheincrementofwealthisnotyetgreatenoughtoenableanyclasstoliveineaseandluxury;wherethebesthouseisbutacabinoflogsoraclothandpapershanty,andtherichestmanisforcedtodailywork—andthoughyouwillfindanabsenceofwealthandallitsconcomitants,youwillfindnobeggars.Thereisnoluxury,butthereisnodestitution.Noonemakesaneasyliving,noraverygoodliving;buteveryonecanmakealiving,andnooneableandwillingtoworkisoppressedbythefearofwant.

Butjustassuchacommunityrealizestheconditionswhichallcivilizedcommunitiesarestrivingfor,andadvancesinthescaleofmaterialprogress—justasclosersettlementandamoreintimateconnectionwiththerestoftheworld,andgreaterutilizationoflabor-savingmachinery,makepossiblegreatereconomiesinproductionandexchange,andwealthinconsequenceincreases,notmerelyintheaggregate,butinproportiontopopulation—sodoespovertytakeadarkeraspect.Somegetaninfinitelybetterandeasierliving,butothersfindithardtogetalivingatall.The“tramp”comeswiththelocomotive,andalmshousesandprisonsareassurelythemarksof“materialprogress”asarecostlydwellings,richwarehouses,andmagnificentchurches.Uponstreetslightedwithgasandpatrolledbyuniformedpolicemen,beggarswaitforthepasser-by,andintheshadowofcollege,andlibrary,andmuseum,aregatheringthemorehideousHunsandfiercerVandalsofwhomMacaulayprophesied.

Thisfact—thegreatfactthatpovertyandallitsconcomitantsshowthemselvesincommunitiesjustastheydevelopintotheconditionstowardwhichmaterialprogresstends—provesthatthesocialdifficultiesexistingwhereveracertainstageofprogresshasbeenreached,donotarisefromlocalcircumstances,butare,insomewayoranother,engenderedbyprogressitself.

And,unpleasantasitmaybetoadmitit,itisatlastbecomingevidentthattheenormousincreaseinproductivepowerwhichhasmarkedthepresentcenturyandisstillgoingonwithacceleratingratio,hasnotendencytoextirpatepovertyortolightentheburdensofthosecompelledtotoil.ItsimplywidensthegulfbetweenDivesandLazarus,andmakesthestruggleforexistencemoreintense.Themarchofinventionhasclothedmankindwithpowersofwhichacenturyagotheboldestimaginationcouldnothavedreamed.Butinfactorieswherelabor-savingmachineryhasreacheditsmostwonderfuldevelopment,littlechildrenareatwork;whereverthenewforcesareanythinglikefullyutilized,largeclassesaremaintainedbycharityorliveonthevergeofrecoursetoit;amidthegreatestaccumulationsofwealth,mendieofstarvation,andpunyinfantssuckledrybreasts;whileeverywherethegreedofgain,theworshipofwealth,showstheforceofthefearofwant.Thepromisedlandfliesbeforeuslikethemirage.ThefruitsofthetreeofknowledgeturnaswegraspthemtoapplesofSodomthatcrumbleatthetouch.

Itistruethatwealthhasbeengreatlyincreased,andthattheaverageofcomfort,leisure,andrefinementhasbeenraised;butthesegainsarenotgeneral.Inthemthelowestclassdonotshare.Idonotmeanthattheconditionofthelowestclasshasnowherenorinanythingbeenimproved;butthatthereisnowhereanyimprovementwhichcanbecreditedtoincreasedproductivepower.Imeanthatthetendencyofwhatwecallmaterialprogressisinnowisetoimprovetheconditionofthelowestclassinthe

essentialsofhealthy,happyhumanlife.Nay,more,thatitisstillfurthertodepresstheconditionofthelowestclass.Thenewforces,elevatingintheirnaturethoughtheybe,donotactuponthesocialfabricfromunderneath,aswasforalongtimehopedandbelieved,butstrikeitatapointintermediatebetweentopandbottom.Itisasthoughanimmensewedgewerebeingforced,notunderneathsociety,butthroughsociety.Thosewhoareabovethepointofseparationareelevated,butthosewhoarebelowarecrusheddown.

Thisdepressingeffectisnotgenerallyrealized,foritisnotapparentwheretherehaslongexistedaclassjustabletolive.Wherethelowestclassbarelylives,ashasbeenthecaseforalongtimeinmanypartsofEurope,itisimpossibleforittogetanylower,forthenextloweststepisoutofexistence,andnotendencytofurtherdepressioncanreadilyshowitself.Butintheprogressofnewsettlementstotheconditionsofoldercommunitiesitmayclearlybeseenthatmaterialprogressdoesnotmerelyfailtorelievepoverty—itactuallyproducesit.IntheUnitedStatesitisclearthatsqualorandmisery,andthevicesandcrimesthatspringfromthem,everywhereincreaseasthevillagegrowstothecity,andthemarchofdevelopmentbringstheadvantagesoftheimprovedmethodsofproductionandexchange.ItisintheolderandrichersectionsoftheUnionthatpauperismanddistressamongtheworkingclassesarebecomingmostpainfullyapparent.IfthereislessdeeppovertyinSanFranciscothaninNewYork,isitnotbecauseSanFranciscoisyetbehindNewYorkinallthatbothcitiesarestrivingfor?WhenSanFranciscoreachesthepointwhereNewYorknowis,whocandoubtthattherewillalsoberaggedandbarefootedchildrenonherstreets?

Thisassociationofpovertywithprogressisthegreatenigmaofourtimes.Itisthecentralfactfromwhichspringindustrial,

social,andpoliticaldifficultiesthatperplextheworld,andwithwhichstatesmanshipandphilanthropyandeducationgrappleinvain.Fromitcomethecloudsthatoverhangthefutureofthemostprogressiveandself-reliantnations.ItistheriddlewhichtheSphinxofFateputstoourcivilizationandwhichnottoansweristobedestroyed.Solongasalltheincreasedwealthwhichmodernprogressbringsgoestobuildupgreatfortunes,toincreaseluxuryandmakesharperthecontrastbetweentheHouseofHaveandtheHouseofWant,progressisnotrealandcannotbepermanent.Thereactionmustcome.Thetowerleansfromitsfoundations,andeverynewstorybuthastensthefinalcatastrophe.Toeducatemenwhomustbecondemnedtopoverty,isbuttomakethemrestive;tobaseonastateofmostglaringsocialinequalitypoliticalinstitutionsunderwhichmenaretheoreticallyequal,istostandapyramidonitsapex.

All-importantasthisquestionis,pressingitselffromeveryquarterpainfullyuponattention,ithasnotyetreceivedasolutionwhichaccountsforallthefactsandpointstoanyclearandsimpleremedy.Thisisshownbythewidelyvaryingattemptstoaccountfortheprevailingdepression.Theyexhibitnotmerelyadivergencebetweenvulgarnotionsandscientifictheories,butalsoshowthattheconcurrencewhichshouldexistbetweenthosewhoavowthesamegeneraltheoriesbreaksupuponpracticalquestionsintoananarchyofopinion.Uponhigheconomicauthoritywehavebeentoldthattheprevailingdepressionisduetoover-consumption;uponequallyhighauthority,thatitisduetoover-production;whilethewastesofwar,theextensionofrailroads,theattemptsofworkmentokeepupwages,thedemonetizationofsilver,theissuesofpapermoney,theincreaseoflabor-savingmachinery,theopeningofshorteravenuestotrade,etc.,areseparatelypointedoutasthecause,bywritersofreputation.

Andwhileprofessorsthusdisagree,theideasthatthereisanecessaryconflictbetweencapitalandlabor,thatmachineryisanevil,thatcompetitionmustberestrainedandinterestabolished,thatwealthmaybecreatedbytheissueofmoney,thatititsthedutyofgovernmenttofurnishcapitalortofurnishwork,arerapidlymakingwayamongthegreatbodyofthepeople,whokeenlyfeelahurtandaresharplyconsciousofawrong.Suchideas,whichbringgreatmassesofmen,therepositoriesofultimatepoliticalpower,undertheleadershipofcharlatansanddemagogues,arefraughtwithdanger;buttheycannotbesuccessfullycombateduntilpoliticaleconomyshallgivesomeanswertothegreatquestionwhichshallbeconsistentwithallherteachings,andwhichshallcommenditselftotheperceptionsofthegreatmassesofmen.

Itmustbewithintheprovinceofpoliticaleconomytogivesuchananswer.Forpoliticaleconomyisnotasetofdogmas.Itistheexplanationofacertainsetoffacts.Itisthesciencewhich,inthesequenceofcertainphenomena,seekstotracemutualrelationsandtoidentifycauseandeffect,justasthephysicalsciencesseektodoinothersetsofphenomena.Itlaysitsfoundationsuponfirmground.Thepremisesfromwhichitmakesitsdeductionsaretruthswhichhavethehighestsanction;axiomswhichweallrecognize;uponwhichwesafelybasethereasoningandactionsofeverydaylife,andwhichmaybereducedtothemetaphysicalexpressionofthephysicallawthatmotionseeksthelineofleastresistance—viz.,thatmenseektogratifytheirdesireswiththeleastexertion.Proceedingfromabasisthusassured,itsprocesses,whichconsistsimplyinidentificationandseparation,havethesamecertainty.Inthissenseitisasexactascienceasgeometry,which,fromsimilartruthsrelativetospace,obtainsitsconclusionsbysimilarmeans,anditsconclusionswhenvalidshouldbeasself-apparent.Andalthoughinthedomainofpoliticaleconomywecannottestourtheoriesbyartificially

producedcombinationsorconditions,asmaybedoneinsomeoftheothersciences,yetwecanapplytestsnolessconclusive,bycomparingsocietiesinwhichdifferentconditionsexist,orby,inimagination,separating,combining,addingoreliminatingforcesorfactorsofknowndirection.

IproposeinthefollowingpagestoattempttosolvebythemethodsofpoliticaleconomythegreatproblemIhaveoutlined.Iproposetoseekthelawwhichassociatespovertywithprogress,andincreaseswantwithadvancingwealth;andIbelievethatintheexplanationofthisparadoxweshallfindtheexplanationofthoserecurringseasonsofindustrialandcommercialparalysiswhich,viewedindependentlyoftheirrelationstomoregeneralphenomena,seemsoinexplicable.Properlycommencedandcarefullypursued,suchaninvestigationmustyieldaconclusionwhichwillstandeverytest,andastruth,willcorrelatewithallothertruth.Forinthesequenceofphenomenathereisnoaccident.Everyeffecthasacause,andeveryfactimpliesaprecedingfact.

Thatpoliticaleconomy,asatpresenttaught,doesnotexplainthepersistenceofpovertyamidadvancingwealthinamannerwhichaccordswiththedeep-seatedperceptionsofmen;thattheunquestionabletruthswhichitdoesteachareunrelatedanddisjointed;thatithasfailedtomaketheprogressinpopularthoughtthattruth,evenwhenunpleasant,mustmake;that,onthecontrary,afteracenturyofcultivation,duringwhichithasengrossedtheattentionofsomeofthemostsubtleandmostpowerfulintellects,itshouldbespurnedbythestatesman,scoutedbythemasses,andrelegatedintheopinionofmanyeducatedandthinkingmentotherankofapseudoscienceinwhichnothingisfixedorcanbefixed—must,itseemstome,beduenottoanyinabilityofthesciencewhenproperlypursued,buttosomefalsestepinitspremises,oroverlookedfactorinitsestimates.Andas

suchmistakesaregenerallyconcealedbytherespectpaidtoauthority,Iproposeinthisinquirytotakenothingforgranted,buttobringevenacceptedtheoriestothetestoffirstprinciples,andshouldtheynotstandthetest,freshlytointerrogatefactsintheendeavortodiscovertheirlaw.

Iproposetobegnoquestion,toshrinkfromnoconclusion,buttofollowtruthwhereveritmaylead.Uponusistheresponsibilityofseekingthelaw,forintheveryheartofourcivilizationto-daywomenfaintandlittlechildrenmoan.Butwhatthatlawmayprovetobeisnotouraffair.Iftheconclusionsthatwereachruncountertoourprejudices,letusnotflinch;iftheychallengeinstitutionsthathavelongbeendeemedwiseandnatural,letusnotturnback.

Itistruethatthepoorestmaynowincertainwaysenjoywhattherichestacenturyagocouldnothavecommanded,butthisdoesnotshowimprovementofconditionsolongastheabilitytoobtainthenecessariesoflifeisnotincreased.Thebeggarinagreatcitymayenjoymanythingsfromwhichthebackwoodsfarmerisdebarred,butthatdoesnotprovetheconditionofthecitybeggarbetterthanthatoftheindependentfarmer.

[BacktoTableofContents]

BookIWagesandCapital

ChapterI.TheCurrentDoctrineofWages—ItsInsufficiencyChapterII.TheMeaningoftheTermsChapterIII.WagesNotDrawnfromCapital,butProducedbytheLaborChapterIV.TheMaintenanceofLaborersNotDrawnfromCapitalChapterV.TheRealFunctionsofCapital

Hethatistofollowphilosophymustbeafreemaninmind.

—Ptolemy.

[BacktoTableofContents]

ChapterITheCurrentDoctrineofWages—ItsInsufficiency

Reducingtoitsmostcompactformtheproblemwehavesetouttoinvestigate,letusexamine,stepbystep,theexplanationwhichpoliticaleconomy,asnowacceptedbythebestauthority,givesofit.

Thecausewhichproducespovertyinthemidstofadvancingwealthisevidentlythecausewhichexhibitsitselfinthetendency,everywhererecognized,ofwagestoaminimum.Letus,therefore,putourinquiryintothiscompactform:

Why,inspiteofincreaseinproductivepower,dowagestendtoaminimumwhichwillgivebutabareliving?

Theanswerofthecurrentpoliticaleconomyis,thatwagesarefixedbytheratiobetweenthenumberoflaborersandtheamountofcapitaldevotedtotheemploymentoflabor,andconstantlytendtothelowestamountonwhichlaborerswillconsenttoliveandreproduce,becausetheincreaseinthenumberoflaborerstendsnaturallytofollowandovertakeanyincreaseincapital.Theincreaseofthedivisorbeingthusheldincheckonlybythepossibilitiesofthequotient,thedividendmaybeincreasedtoinfinitywithoutgreaterresult.

Incurrentthoughtthisdoctrineholdsallbutundisputedsway.Itbearstheindorsementoftheveryhighestnamesamongthecultivatorsofpoliticaleconomy,andthoughtherehavebeenattacksuponit,theyaregenerallymoreformalthanreal.ItisassumedbyBuckleasthebasisofhisgeneralizationsofuniversalhistory.Itistaughtinall,ornearlyall,thegreatEnglishand

Americanuniversities,andislaiddownintextbookswhichaimatleadingthemassestoreasoncorrectlyuponpracticalaffairs,whileitseemstoharmonizewiththenewphilosophy,which,havinginafewyearsallbutconqueredthescientificworld,isnowrapidlypermeatingthegeneralmind.

Thusentrenchedintheupperregionsofthought,itisincruderformevenmorefirmlyrootedinwhatmaybestyledthelower.Whatgivestothefallaciesofprotectionsuchatenacioushold,inspiteoftheirevidentinconsistenciesandabsurdities,istheideathatthesumtobedistributedinwagesisineachcommunityafixedone,whichthecompetitionof“foreignlabor”muststillfurthersubdivide.Thesameideaunderliesmostofthetheorieswhichaimattheabolitionofinterestandtherestrictionofcompetition,asthemeanswherebytheshareofthelaborerinthegeneralwealthcanbeincreased;anditcropsoutineverydirectionamongthosewhoarenotthoughtfulenoughtohaveanytheories,asmaybeseeninthecolumnsofnewspapersandthedebatesoflegislativebodies.

Andyet,widelyacceptedanddeeplyrootedasitis,itseemstomethatthistheorydoesnottallywithobviousfacts.For,ifwagesdependupontheratiobetweentheamountoflaborseekingemploymentandtheamountofcapitaldevotedtoitsemployment,therelativescarcityorabundanceofonefactormustmeantherelativeabundanceorscarcityoftheother.Thus,capitalmustberelativelyabundantwherewagesarehigh,andrelativelyscarcewherewagesarelow.Now,asthecapitalusedinpayingwagesmustlargelyconsistofthecapitalconstantlyseekinginvestment,thecurrentrateofinterestmustbethemeasureofitsrelativeabundanceorscarcity.So,ifitbetruethatwagesdependupontheratiobetweentheamountoflaborseekingemploymentandthecapitaldevotedtoitsemployment,thenhighwages,themarkoftherelativescarcityoflabor,mustbeaccompaniedbylow

interest,themarkoftherelativeabundanceofcapital,andreversely,lowwagesmustbeaccompaniedbyhighinterest.

Thisisnotthefact,butthecontrary.Eliminatingfrominteresttheelementofinsurance,andregardingonlyinterestproper,orthereturnfortheuseofcapital,isitnotageneraltruththatinterestishighwhereandwhenwagesarehigh,andlowwhereandwhenwagesarelow?BothwagesandinteresthavebeenhigherintheUnitedStatesthaninEngland,inthePacificthanintheAtlanticStates.Isitnotanotoriousfactthatwherelaborflowsforhigherwages,capitalalsoflowsforhigherinterest?Isitnottruethatwherevertherehasbeenageneralriseorfallinwagestherehasbeenatthesametimeasimilarriseorfallininterest?InCalifornia,forinstance,whenwageswerehigherthananywhereelseintheworld,soalsowasinteresthigher.WagesandinteresthaveinCaliforniagonedowntogether.Whencommonwageswere65aday,theordinarybankrateofinterestwastwenty-fourpercent.perannum.Nowthatcommonwagesare62or62.50aday,theordinarybankrateisfromtentotwelvepercent.

Now,thisbroad,generalfact,thatwagesarehigherinnewcountries,wherecapitalisrelativelyscarce,thaninoldcountries,wherecapitalisrelativelyabundant,istooglaringtobeignored.Andalthoughverylightlytouchedupon,itisnoticedbytheexpoundersofthecurrentpoliticaleconomy.ThemannerinwhichitisnoticedproveswhatIsay,thatitisutterlyinconsistentwiththeacceptedtheoryofwages.ForinexplainingitsuchwritersasMill,Fawcett,andPricevirtuallygiveupthetheoryofwagesuponwhich,inthesametreatises,theyformallyinsist.Thoughtheydeclarethatwagesarefixedbytheratiobetweencapitalandlaborers,theyexplainthehigherwagesandinterestofnewcountriesbythegreaterrelativeproductionofwealth.Ishallhereaftershowthatthisisnotthefact,butthat,onthecontrary,theproductionofwealthisrelativelylargerinoldanddensely

populatedcountriesthaninnewandsparselypopulatedcountries.ButatpresentImerelywishtopointouttheinconsistency.Fortosaythatthehigherwagesofnewcountriesareduetogreaterproportionateproduction,isclearlytomaketheratiowithproduction,andnottheratiowithcapital,thedeterminatorofwages.

ThoughthisinconsistencydoesnotseemtohavebeenperceivedbytheclassofwriterstowhomIrefer,ithasbeennoticedbyoneofthemostlogicaloftheexpoundersofthecurrentpoliticaleconomy.ProfessorCairnesendeavorsinaveryingeniouswaytoreconcilethefactwiththetheory,byassumingthatinnewcountries,whereindustryisgenerallydirectedtotheproductionoffoodandwhatinmanufacturesiscalledrawmaterial,amuchlargerproportionofthecapitalusedinproductionisdevotedtothepaymentofwagesthaninoldercountrieswhereagreaterpartmustbeexpendedinmachineryandmaterial,andthus,inthenewcountry,thoughcapitalisscarcer,andinterestishigher,theamountdeterminedtothepaymentofwagesisreallylarger,andwagesarealsohigher.Forinstance,of6100,000devotedinanoldcountrytomanufactures,680,000wouldprobablybeexpendedforbuildings,machineryandthepurchaseofmaterials,leavingbut620,000tobepaidoutinwages;whereasinanewcountry,of630,000devotedtoagriculture,etc.,notmorethan65,000wouldberequiredfortools,etc.,leaving625,000tobedistributedinwages.Inthiswayitisexplainedthatthewagefundmaybecomparativelylargewherecapitaliscomparativelyscarce,andhighwagesandhighinterestaccompanyeachother.

InwhatfollowsIthinkIshallbeabletoshowthatthisexplanationisbaseduponatotalmisapprehensionoftherelationsoflabortoCapital—afundamentalerrorastothefundfromwhichwagesaredrawn;butatpresentitisnecessaryonlytopointoutthattheconnectioninthefluctuationofwagesandinterestin

thesamecountriesandinthesamebranchesofindustrycannotthusbeexplained.Inthosealternationsknownas”goodtimes“and”hardtimes“abriskdemandforlaborandgoodwagesisalwaysaccompaniedbyabriskdemandforcapitalandstiffratesofinterest.While,whenlaborerscannotfindemploymentandwagesdroop,thereisalwaysanaccumulationofcapitalseekinginvestmentatlowrates.Thepresentdepressionhasbeennolessmarkedbywantofemploymentanddistressamongtheworkingclassesthanbytheaccumulationofunemployedcapitalinallthegreatcenters,andbynominalratesofinterestonundoubtedsecurity.Thus,underconditionswhichadmitofnoexplanationconsistentwiththecurrenttheory,dowefindhighinterestcoincidingwithhighwages,andlowinterestwithlowwages—capitalseeminglyscarcewhenlaborisscarce,andabundantwhenlaborisabundant.

Allthesewellknownfacts,whichcoincidewitheachother,pointtoarelationbetweenwagesandinterest,butitistoarelationofconjunction,notofopposition.Evidentlytheyareutterlyinconsistentwiththetheorythatwagesaredeterminedbytheratiobetweenlaborandcapital,oranypartofcapital.

How,then,itwillbeasked,couldsuchatheoryarise?Howisitthatithasbeenacceptedbyasuccessionofeconomists,fromthetimeofAdamSmithtothepresentday?

Ifweexaminethereasoningbywhichincurrenttreatisesthistheoryofwagesissupported,weseeatoncethatitisnotaninductionfromobservedfacts,butadeductionfromapreviouslyassumedtheoryviz.,thatwagesaredrawnfromcapital.Itbeingassumedthatcapitalisthesourceofwages,itnecessarilyfollowsthatthegrossamountofwagesmustbelimitedbytheamountofcapitaldevotedtotheemploymentoflabor,andhencethattheamountindividuallaborerscanreceivemustbedeterminedbythe

ratiobetweentheirnumberandtheamountofcapitalexistingfortheirrecompense.Thisreasoningisvalid,buttheconclusion,aswehaveseen,doesnotcorrespondwiththefacts.Thefault,therefore,mustbeinthepremises.Letussee.

Iamawarethatthetheoremthatwagesaredrawnfromcapitalisoneofthemostfundamentalandapparentlybestsettledofcurrentpoliticaleconomy,andthatithasbeenacceptedasaxiomaticbyallthegreatthinkerswhohavedevotedtheirpowerstotheelucidationofthescience.Nevertheless,Ithinkitcanbedemonstratedtobeafundamentalerror—thefruitfulparentofalongseriesoferrors,whichvitiatemostimportantpracticalconclusions.ThisdemonstrationIamabouttoattempt.Itisnecessarythatitshouldbeclearandconclusive,foradoctrineuponwhichsomuchimportantreasoningisbased,whichissupportedbysuchaweightofauthority,whichissoplausibleinitself,andissoliabletorecurindifferentforms,cannotbesafelybrushedasideinaparagraph.

ThepropositionIshallendeavortoprove,is:

Thatwages,insteadofbeingdrawnfromcapital,areinrealitydrawnfromtheproductofthelaborforwhichtheyarepaid.

Now,inasmuchasthecurrenttheorythatwagesaredrawnfromcapitalalsoholdsthatcapitalisreimbursedfromproduction,thisatfirstglancemayseemadistinctionwithoutadifference—amerechangeinterminology,todiscusswhichwouldbebuttoaddtothoseunprofitabledisputesthatrendersomuchthathasbeenwrittenuponpolitico-economicsubjectsasbarrenandworthlessasthecontroversiesofthevariouslearnedsocietiesaboutthetruereadingoftheinscriptiononthestonethatMr.Pickwickfound.Butthatitismuchmorethanaformaldistinctionwillbeapparentwhenitisconsideredthatuponthedifferencebetweenthetwo

propositionsarcbuiltupallthecurrenttheoriesastotherelationsofcapitalandlabor;thatfromitarededuceddoctrinesthat,themselvesregardedasaxiomatic,bound,direct,andgoverntheablestmindsinthediscussionofthemostmomentousquestions.For,upontheassumptionthatwagesaredrawndirectlyfromcapital,andnotfromtheproductofthelabor,isbased,notonlythedoctrinethatwagesdependupontheratiobetweencapitalandlabor,butthedoctrinethatindustryislimitedbycapital—thatcapitalmustbeaccumulatedbeforelaborisemployed,andlaborcannotbeemployedexceptascapitalisaccumulated;thedoctrinethateveryincreaseofcapitalgivesoriscapableofgivingadditionalemploymenttoindustry;thedoctrinethattheconversionofcirculatingcapitalintofixedcapitallessensthefundapplicabletothemaintenanceoflabor;thedoctrinethatmorelaborerscanbeemployedatlowthanathighwages;thedoctrinethatcapitalappliedtoagriculturewillmaintainmorelaborersthanifappliedtomanufactures;thedoctrinethatprofitsarehighorlowaswagesareloworhigh,orthattheydependuponthecostofthesubsistenceoflaborers;togetherwithsuchparadoxesasthatademandforcommoditiesisnotademandforlabor,orthatcertaincommoditiesmaybeincreasedincostbyareductioninwagesordiminishedincostbyanincreaseinwages.

Inshort,alltheteachingsofthecurrentpoliticaleconomy,inthewidestandmostimportantpartofitsdomainarebasedmoreorlessdirectlyupontheassumptionthatlaborismaintainedandpaidoutofexistingcapitalbeforetheproductwhichconstitutestheultimateobjectissecured.Ifitbeshownthatthisisanerror,andthatonthecontrarythemaintenanceandpaymentoflabordonoteventemporarilytrenchoncapital,butaredirectlydrawnfromtheproductofthelabor,thenallthisvastsuperstructureisleftwithoutsupportandmustfall.Andsolikewisemustfallthevulgartheorieswhichalsohavetheirbaseinthebeliefthatthesumtobedistributedinwagesisafixedone,theindividualshares

inwhichmustnecessarilybedecreasedbyanincreaseInthenumberoflaborers.

ThedifferencebetweenthecurrenttheoryandtheoneIadvanceis,infact,similartothatbetweenthemercantiletheoryofinternationalexchangesandthatwithwhichAdamSmithsupplantedit.Betweenthetheorythatcommerceistheexchangeofcommoditiesformoney,andthetheorythatitistheexchangeofcommoditiesforcommodities,theremayseemnorealdifferencewhenitisrememberedthattheadherentsofthemercantiletheorydidnotassumethatmoneyhadanyotherusethanasitcouldbeexchangedforcommodities.Yet,inthepracticalapplicationofthesetwotheories,therearisesallthedifferencebetweenrigidgovernmentalprotectionandfreetrade.

IfIhavesaidenoughtoshowthereadertheultimateimportanceofthereasoningthroughwhichIamabouttoaskhimtofollowme,itwillnotbenecessarytoapologizeinadvanceeitherforsimplicity,orprolixity.Inarraigningadoctrineofsuchimportance—adoctrinesupportedbysuchaweightofauthority,itisnecessarytobebothclearandthorough.

WereitnotforthisIshouldbetemptedtodismisswithasentencetheassumptionthatwagesaredrawnfromcapital.Forallthevastsuperstructurewhichthecurrentpoliticaleconomybuildsuponthisdoctrineisintruthbaseduponafoundationwhichhasbeenmerelytakenforgranted,withouttheslightestattempttodistinguishtheapparentfromthereal.Becausewagesaregenerallypaidinmoney,andinmanyoftheoperationsofproductionarepaidbeforetheproductisfullycompleted,orcanbeutilized,itisinferredthatwagesaredrawnfrompre-existingcapital,and,therefore,thatindustryislimitedbycapitalthatistosaythatlaborcannotbeemployeduntilcapitalhasbeenaccumulated,andcanonlybeemployedtotheextentthatcapital

hasbeenaccumulated.

Yetintheverytreatisesinwhichthelimitationofindustrybycapitalislaiddownwithoutreservationandmadethebasisforthemostimportantreasoningsandelaboratetheories,wearetoldthatcapitalisstoreduporaccumulatedlabor—”thatpartofwealthwhichissavedtoassistfutureproduction.“Ifwesubstitutefortheword”capital“thisdefinitionoftheword,thepropositioncarriesitsownrefutation,forthatlaborcannotbeemployeduntiltheresultsoflaboraresavedbecomestooabsurdfordiscussion.

Shouldwe,however,withthisreductioadabsurdum,attempttoclosetheargument,weshouldprobablybemetwiththeexplanation,notthatthefirstlaborersweresuppliedbyProvidencewiththecapitalnecessarytosetthemtowork,butthatthepropositionmerelyreferstoastateofsocietyinwhichproductionhasbecomeacomplexoperation.

Butthefundamentaltruth,thatinalleconomicreasoningmustbefirmlygrasped,andneverletgo,isthatsocietyinitsmosthighlydevelopedformisbutanelaborationofsocietyinitsrudestbeginnings,andthatprinciplesobviousinthesimplerrelationsofmenaremerelydisguisedandnotabrogatedorreversedbythemoreintricaterelationsthatresultfromthedivisionoflaborandtheuseofcomplextoolsandmethods.Thesteamgristmill,withitscomplicatedmachineryexhibitingeverydiversityofmotion,issimplywhattherudestonemortardugupfromanancientriverbedwasinitsday—aninstrumentforgrindingcorn.Andeverymanengagedinit,whethertossingwoodintothefurnace,runningtheengine,dressingstones,printingsacksorkeepingbooks,isreallydevotinghislabortothesamepurposethattheprehistoricsavagedidwhenbeusedhismortar—thepreparationofgrainforhumanfood.

Andso,ifwereducetotheirlowesttermsallthecomplexoperationsofmodernproduction,weseethateachindividualwhotakespartinthisinfinitelysubdividedandintricatenetworkofproductionandexchangeisreallydoingwhattheprimevalmandidwhenheclimbedthetreesforfruitorfollowedtherecedingtideforshellfish—endeavoringtoobtainfromnaturebytheexertionofhispowersthesatisfactionofhisdesires.Ifwekeepthisfirmlyinmind,ifwelookuponproductionasawhole—astheco-operationofallembracedinanyofitsgreatgroupstosatisfythevariousdesiresofeach,weplainlyseethattherewardeachobtainsforhisexertionscomesastrulyandasdirectlyfromnatureastheresultofthatexertion,asdidthatofthefirstman.

Toillustrate:inthesimpleststateofwhichwecanconceive,eachmandigshisownbaitandcatcheshisownfish.Theadvantagesofthedivisionoflaborsoonbecomeapparent,andonedigsbaitwhiletheothersfish.Yetevidentlytheonewhodigsbaitisinrealitydoingasmuchtowardthecatchingoffishasanyofthosewhoactuallytakethefish.Sowhentheadvantagesofcanoesarediscovered,andinsteadofallgoinga-fishing,onestaysbehindandmakesandrepairscanoes,thecanoe-makerisinrealitydevotinghislabortothetakingoffishasmuchastheactualfishermen,andthefishwhichheeatsatnightwhenthefishermencomehomeareastrulytheproductofhislaborasoftheirs.Andthuswhenthedivisionoflaborisfairlyinaugurated,andinsteadofeachattemptingtosatisfyallofhiswantsbydirectresorttonature,onefishes,anotherhunts,athirdpicksberries,afourthgathersfruit,afifthmakestools,asixthbuildshuts,andaseventhpreparesclothing—eachoneistotheextentheexchangesthedirectproductofhisownlaborforthedirectproductofthelaborofothersreallyapplyinghisownlabortotheproductionofthethingsheuses—isineffectsatisfyinghisparticulardesiresbytheexertionofhisparticularpowers;thatistosay,whathereceivesheinrealityproduces.Ifhedigsrootsandexchangesthemfor

venison,heisineffectastrulytheprocurerofthevenisonasthoughhehadgoneinchaseofthedeerandleftthehuntsmantodighisownroots.Thecommonexpression,”Imadesoandso,“signifying”Iearnedsoandso,“or”IearnedmoneywithwhichIpurchasedsoandso,“is,economicallyspeaking,notmetaphoricallybutliterallytrue.Earningismaking.

Now,ifwefollowtheseprinciples,obviousenoughinasimplerstateofsociety,throughthecomplexitiesofthestatewecallcivilized,weshallseeclearlythatineverycaseinwhichlaborisexchangedforcommodities,productionreallyprecedesenjoyment;thatwagesaretheearnings—thatistosay,themakingsoflabor—nottheadvancesofcapital,andthatthelaborerwhoreceiveshiswagesinmoney(coinedorprinted,itmaybe,beforehislaborcommenced)reallyreceivesinreturnfortheadditionhislaborhasmadetothegeneralstockofwealth,adraftuponthatgeneralstock,whichhemayutilizeinanyparticularformofwealththatwillbestsatisfyhisdesires;andthatneitherthemoney,whichisbutthedraft,northeparticularformofwealthwhichheusesittocallfor,representsadvancesofcapitalforhismaintenance,butonthecontraryrepresentsthewealth,oraportionofthewealth,hislaborhasalreadyaddedtothegeneralstock.

Keepingtheseprinciplesinviewweseethatthedraughtsman,who,shutupinsomedingyofficeonthebanksoftheThames,isdrawingtheplansforagreatmarineengine,isinrealitydevotinghislabortotheproductionofbreadandmeatastrulyasthoughheweregarneringthegraininCaliforniaorswingingalariatonaLaPlatapampa;thatheisastrulymakinghisownclothingasthoughhewereshearingsheepinAustraliaorweavingclothinPaisley,andjustaseffectuallyproducingtheclarethedrinksatdinnerasthoughhegatheredthegrapesonthebanksoftheGaronne.Theminerwho,twothousandfeetundergroundintheheartofthe

Comstock,isdiggingoutsilverore,is,ineffect,byvirtueofathousandexchanges,harvestingcropsinvalleysfivethousandfeetnearertheearth’scenter;chasingthewhalethroughArcticicefields;pluckingtobaccoleavesinVirginia;pickingcoffeeberriesinHonduras;cuttingsugarcaneontheHawaiianIslands;gatheringcottoninGeorgiaorweavingitinManchesterorLowell;makingquaintwoodentoysforhischildrenintheHartzMountains;orpluckingamidthegreenandgoldofLosAngelesorchardstheorangeswhich,whenhisshiftisrelieved,hewilltakehometohissickwife.ThewageswhichhereceivesonSaturdaynightatthemouthoftheshaft,whataretheybutthecertificatetoalltheworldthathehasdonethesethings—theprimaryexchangeinthelongserieswhichtransmuteshislaborintothethingshehasreallybeenlaboringfor?

Allthisisclearwhenlookedatinthisway;buttomeetthisfallacyinallitsstrongholdsandlurkingplaceswemustchangeourinvestigationfromthedeductivetotheinductiveform.Letusnowsee,if,beginningwithfactsandtracingtheirrelations,wearriveatthesameconclusionsasarethusobviouswhen,beginningwithfirstprinciples,wetracetheirexemplificationincomplexfacts.

ThisseemstometrueofMr.Thornton’sobjections,forwhilehedeniestheexistenceofapredeterminedwagefund,consistingofaportionofcapitalsetapartforthepurchaseoflabor,heyetholds(whichistheessentialthing)thatwagesaredrawnfromcapital,andthatincreaseordecreaseofcapitalisincreaseordecreaseofthefundavailableforthepaymentofwages.ThemostvitalattackuponthewagefunddoctrineofwhichIknowisthatofProfessorFrancisA.Walker(“TheWagesQuestion”,NewYork,1876),yetheadmitsthatwagesareinlargepartadvancedfromcapital—which,sofarasitgoes,isallthatthestanchestsupporterofthewagefundtheorycouldclaimwhilehefullyacceptsthe

Malthusiantheory.Thushispracticalconclusionsinnowisedifferfromthosereachedbyexpoundersofthecurrenttheory.

SomeLeadingPrinciplesofPoliticalEconomyNewlyExpounded,“Chap.1,Part2.

Timesofcommercialpanicaremarkedbyhighratesofdiscount,butthisisevidentlynotahighrateofinterest,properlysocalled,butabutrateofinsuranceagainstrisk.

ForinstanceMcCulloch(NoteVIto”WealthofNations“)says:”Thatportionofthecapitalorwealthofacountrywhichtheemployersoflaborintendtoorarewillingtopayoutinthepurchaseoflabor,maybemuchlargeratonetimethananother.Butwhatevermaybeitsabsolutemagnitude,itobviouslyformstheonlysourcefromwhichanyportionofthewagesoflaborcanbederived.Nootherfundisinexistencefromwhichthelaborer,assuch,candrawasingleshilling.Andhenceitfollowsthattheaveragerateofwages,ortheshareofthenationalcapitalappropriatedtotheemploymentoflaborfalling,atanaverage,toeachlaborer,mustentirelydependonitsamountascomparedwiththenumberofthoseamongstwhomithastobedivided.“Similarcitationsmightbemadefromallthestandardeconomists.

Wearespeakingoflaborexpendedinproduction,towhichitisbestforthesakeofsimplicitytoconfinetheinquiry.Anyquestionwhichmayariseinthereader’smindastowagesforunproductiveserviceshadbestthereforebedeferred.

[BacktoTableofContents]

ChapterIITheMeaningoftheTerms

Beforeproceedingfurtherinourinquiry,letusmakesureofthemeaningofourterms,forindistinctnessintheirusemustinevitablyproduceambiguityandindeterminatenessinreasoning.Notonlyisitrequisiteineconomicreasoningtogivetosuchwordsas”wealth,“”capital,“”rent,“”wages,“andthelike,amuchmoredefinitesensethantheybearincommondiscourse,but,unfortunately,eveninpoliticaleconomythereis,astosomeoftheseterms,nocertainmeaningassignedbycommonconsent,differentwritersgivingtothesametermdifferentmeanings,andthesamewritersoftenusingatermindifferentsenses.Nothingcanaddtotheforceofwhathasbeensaidbysomanyeminentauthorsastotheimportanceofclearandprecisedefinitions,savetheexample,notaninfrequentone,ofthesameauthorsfallingintograveerrorsfromtheverycausetheywarnedagainst.Andnothingsoshowstheimportanceoflanguageinthoughtasthespectacleofevenacutethinkersbasingimportantconclusionsupontheuseofthesamewordinvaryingsenses.Ishallendeavortoavoidthesedangers.Itwillbemyeffortthroughout,asanytermbecomesofimportance,tostateclearlywhatImeanbyit,andtouseitinthatsenseandinnoother.Letmeaskthereadertonoteandtobearinmindthedefinitionsthusgiven,asotherwiseIcannothopetomakemyselfproperlyunderstood.Ishallnotattempttoattacharbitrarymeaningstowords,ortocointerms,evenwhenitwouldbeconvenienttodoso,butshallconformtousageascloselyasispossible,onlyendeavoringsotofixthemeaningofwordsthattheymayclearlyexpressthought.

Whatwehavenowonhandistodiscoverwhether,asamatteroffact,wagesaredrawnfromcapital.Asapreliminary,letussettlewhatwemeanbywagesandwhatwemeanbycapital.Totheformerwordasufficientlydefinitemeaninghasbeengivenbyeconomicwriters,buttheambiguitieswhichhaveattachedtotheuseofthelatterinpolitical

economywillrequireadetailedexamination.

Asusedincommondiscourse”wages“meansacompensationpaidtoahiredpersonforhisservices;andwespeakofoneman”workingforwages,“incontradistinctiontoanotherwhois”workingforhimself.“Theuseofthetermisstillfurthernarrowedbythehabitofapplyingitsolelytocompensationpaidformanuallabor.Wedonotspeakofthewagesofprofessionalmen,managersorclerks,butoftheirfees,commissions,orsalaries.Thusthecommonmeaningofthewordwagesisthecompensationpaidtoahiredpersonformanuallabor.Butinpoliticaleconomythewordwageshasamuchwidermeaning,andincludesallreturnsforexertion.For,aspoliticaleconomistsexplain,thethreeagentsorfactorsinproductionareland,labor,andcapital,andthatpartoftheproducewhichgoestothesecondofthesefactorsisbythemstyledwages.

Thusthetermlaborincludesallhumanexertionintheproductionofwealth,andwages,beingthatpartoftheproducewhichgoestolabor,includesallrewardforsuchexertion.Thereis,therefore,inthepoliticoeconomicsenseofthetermwagesnodistinctionastothekindoflabor,orastowhetheritsrewardisreceivedthroughanemployerornot,butwagesmeansthereturnreceivedfortheexertionoflabor,asdistinguishedfromthereturnreceivedfortheuseofcapital,andthereturnreceivedbythelandholderfortheuseofland.Themanwhocultivatesthesoilforhimselfreceiveshiswagesinitsproduce,justasifheuseshisowncapitalandownshisownland,hemayalsoreceiveinterestandrent;thehunter’swagesarethegamehekills;thefisherman’swagesarethefishhetakes.Thegoldwashedoutbytheself-employinggolddiggerisasmuchhiswagesasthemoneypaidtothehiredcoalminerbythepurchaserofhislabor,and,asAdamSmithshows,thehighprofitsofretailstorekeepersareinlargepartwages,beingtherecompenseoftheirlaborandnotoftheircapital.Inshort,whateverisreceivedastheresultorrewardofexertionis”wages.“

Thisisallitisnownecessarytonoteasto”wages,“butitisimportanttokeepthisinmind.Forinthestandardeconomicworksthissenseofthetermwagesisrecognizedwithgreaterorlessclearnessonlytobesubsequentlyignored.

Butitismoredifficulttoclearawayfromtheideaofcapitaltheambiguitiesthatbesetit,andtofixthescientificuseoftheterm.Ingeneraldiscourse,allsortsofthingsthathaveavalueorwillyieldareturnarevaguelyspokenofascapital,whileeconomicwritersvarysowidelythatthetermcanhardlybesaidtohaveafixedmeaning.Letuscomparewitheachotherthedefinitionsofafewrepresentativewriters:

”Thatpartofaman’sstock,“saysAdamSmith(BookII,Chap.1),”whichheexpectstoaffordhimarevenue,iscalledhiscapital,“andthecapitalofacountryorsociety,hegoesontosay,consistsof(1)machinesandinstrumentsoftradewhichfacilitateandabridgelabor;(2)buildings,notmeredwellings,butwhichmaybeconsideredinstrumentsoftrade—suchasshops,farmhouses,etc.;(3)improvementsoflandwhichbetterfititfortillageorculture;(4)theacquiredandusefulabilitiesofalltheinhabitants;(5)money;(6)provisionsinthehandsofproducersanddealers,fromthesaleofwhichtheyexpecttoderiveaprofit;(7)thematerialof,orpartiallycompleted,manufacturedarticlesstillinthehandsofproducersordealers;(8)completedarticlesstillinthehandsofproducersordealers.Thefirstfourofthesebestylesfixedcapital,andthelastfourcirculatingcapital,adistinctionofwhichitisnotnecessarytoourpurposetotakeanynote.

Ricardo’sdefinitionis:

”Capitalisthatpartofthewealthofacountrywhichisemployedinproduction,andconsistsoffood,clothing,tools,rawmaterials,machinery,etc.,necessarytogiveeffecttolabor.“—PrinciplesofPoliticalEconomy,Chap.V.

Thisdefinition,itwillbeseen,isverydifferentfromthatofAdamSmith,asitexcludesmanyofthethingswhichheincludes—asacquiredtalents,articlesofmeretasteorluxuryinthepossessionofproducersordealers;andincludessomethingsheexcludes—suchasfood,clothing,etc.,inthepossessionoftheconsumer.

McCulloch’sdefinitionis:

”Thecapitalofanationreallycomprisesallthoseportionsoftheproduceofindustryexistinginitthatmaybedirectlyemployedeithertosupporthumanexistenceortofacilitateproduction.“—NotesonWealthofNations,BookII,Chap.I.

ThisdefinitionfollowsthelineofRicardo’s,butiswider.Whileitexcludeseverythingthatisnotcapableofaidingproduction,itincludeseverythingthatissocapable,withoutreferencetoactualuseornecessityforuse—thehorsedrawingapleasurecarriagebeing,accordingtoMcCulloch’sview,asheexpresslystates,asmuchcapitalasthehorsedrawingaplow,becausebemay,ifneedarises,beusedtodrawaplow.

JohnStuartMill,followingthesamegenerallineasRicardoandMcCulloch,makesneithertheusenorthecapabilityofuse,butthedeterminationtouse,thetestofcapital.Hesays:

”Whateverthingsaredestinedtosupplyproductivelaborwiththeshelter,protection,toolsandmaterialswhichtheworkrequires,andtofeedandotherwisemaintainthelaborerduringtheprocess,arecapital.“—PrinciplesofPoliticalEconomy,BookI,Chap.IV.

Thesequotationssufficientlyillustratethedivergenceofthemasters.Amongminorauthorsthevarianceisstillgreater,asafewexampleswillsufficetoshow.

ProfessorWayland,whose”ElementsofPoliticalEconomy“haslong

beenafavoritetextbookinAmericaneducationalinstitutions,wheretherehasbeenanypretenseofteachingpoliticaleconomy,givesthisluciddefinition:

”Thewordcapitalisusedintwosenses.Inrelationtoproductitmeansanysubstanceonwhichindustryistobeexerted.Inrelationtoindustry,thematerialonwhichindustryisabouttoconfervalue,thatonwhichithasconferredvalue;theinstrumentswhichareusedfortheconferringofvalue,aswellasthemeansofsustenancebywhichthebeingissupportedwhileheisengagedinperformingtheoperation.“—ElementsofPoliticalEconomy,BookI,Chap.I.

HenryC.Carey,theAmericanapostleofprotectionism,definescapitalas”theinstrumentbywhichmanobtainsmasteryovernature,includinginitthephysicalandmentalpowersofmanhimself.“ProfessorPerry,aMassachusettsfreetrader,veryproperlyobjectstothisthatithopelesslyconfusestheboundariesbetweencapitalandlabor,andthenhimselfhopelesslyconfusestheboundariesbetweencapitalandlandbydefiningcapitalas”anyvaluablethingoutsideofmanhimselffromwhoseusespringspecuniaryincreaseorprofit.“AnEnglisheconomicwriterofhighstanding,Mr.Wm.Thornton,beginsanelaborateexaminationoftherelationsoflaborandcapital(”OnLabor“)bystatingthathewillincludelandwithcapital,whichisverymuchasifonewhoproposedtoteachalgebrashouldbeginwiththedeclarationthathewouldconsiderthesignsplusandminusasmeaningthesamethingandhavingthesamevalue.AnAmericanwriter,alsoofhighstanding,ProfessorFrancisA.Walker,makesthesamedeclarationinhiselaboratebookon”TheWagesQuestion.“AnotherEnglishwriter,N.A.Nicholson(”TheScienceofExchanges,“London,1873),seemstocaptheclimaxofabsurditybydeclaringinoneparagraph(p.76)that”capitalmustofcoursebeaccumulatedbysaving,“andintheverynextparagraphstatingthat”thelandwhichproducesacrop,theplowwhichturnsthesoil,thelaborwhichsecurestheproduce,andtheproduceitself,ifamaterialprofitistobederivedfromitsemployment,areallalikecapital.“Buthowlandand

laboraretobeaccumulatedbysavingthemhenowherecondescendstoexplain.InthesamewayastandardAmericanwriter,ProfessorAmasaWalker(p.66,”ScienceofWealth“),firstdeclaresthatcapitalarisesfromthenetsavingsoflaborandthenimmediatelyafterwarddeclaresthatlandiscapital.

Imightgoonforpages,citingcontradictoryandself-contradictorydefinitions.Butitwouldonlywearythereader.Itisunnecessarytomultiplyquotations.Thosealreadygivenaresufficienttoshowhowwideadifferenceexistsastothecomprehensionofthetermcapital.Anyonewhowantsfurtherillustrationofthe”confusionworseconfounded“whichexistsonthissubjectamongtheprofessorsofpoliticaleconomymayfinditinanylibrarywheretheworksoftheseprofessorsarerangedsidebyside.

Now,itmakeslittledifferencewhatnamewegivetothings,ifwhenweusethenamewealwayskeepinviewthesamethingsandnoothers.Butthedifficultyarisingineconomicreasoningfromthesevagueandvaryingdefinitionsofcapitalisthatitisonlyinthepremisesofreasoningthatthetermisusedinthepeculiarsenseassignedbythedefinition,whileinthepracticalconclusionsthatarereacheditisalwaysused,oratleastitisalwaysunderstood,inonegeneralanddefinitesense.When,forinstance,itissaidthatwagesaredrawnfromcapital,thewordcapitalisunderstoodinthesamesenseaswhenwespeakofthescarcityorabundance,theincreaseordecrease,thedestructionorincrement,ofcapital—acommonlyunderstoodanddefinitesensewhichseparatescapitalfromtheotherfactorsofproduction,landandlabor,andalsoseparatesitfromlikethingsusedmerelyforgratification.Infact,mostpeopleunderstandwellenoughwhatcapitalisuntiltheybegintodefineit,andIthinktheirworkswillshowthattheeconomicwriterswhodiffersowidelyintheirdefinitionsusetheterminthiscommonlyunderstoodsenseinallcasesexceptintheirdefinitionsandthereasoningbasedonthem.

Thiscommonsenseofthetermisthatofwealthdevotedtoprocuringmorewealth.Dr.AdamSmithcorrectlyexpressesthiscommonideawhenhesays:”Thatpartofaman’sstockwhichheexpectstoaffordhimrevenueiscalledhiscapital.“Andthecapitalofacommunityisevidentlythesumofsuchindividualstocks,orthatpartoftheaggregatestockwhichisexpectedtoprocuremorewealth.Thisalsoisthederivativesenseoftheterm.Thewordcapital,asphilologiststraceit,comesdowntousfromatimewhenwealthwasestimatedincattle,andaman’sincomedependeduponthenumberofheadhecouldkeepfortheirincrease.

Thedifficultieswhichbesettheuseofthewordcapital,asanexactterm,andwhichareevenmorestrikinglyexemplifiedincurrentpoliticalandsocialdiscussionsthaninthedefinitionsofeconomicwriters,arisefromtwofacts—first,thatcertainclassesofthings,thepossessionofwhichtotheindividualispreciselyequivalenttothepossessionofcapital,arenotpartofthecapitalofthecommunity;and,second,thatthingsofthesamekindmayormaynotbecapital,accordingtothepurposetowhichtheyaredevoted.

Withalittlecareastothesepoints,thereshouldbenodifficultyinobtainingasufficientlyclearandfixedideaofwhatthetermcapitalasgenerallyusedproperlyincludes;suchanideaaswillenableustosaywhatthingsarecapitalandwhatarenot,andtousethewordwithoutambiguityorslip.

Land,labor,andcapitalarethethreefactorsofproduction.Ifwerememberthatcapitalisthusatermusedincontradistinctiontolandandlabor,weatonceseethatnothingproperlyincludedundereitheroneofthesetermscanbeproperlyclassedascapital.Thetermlandnecessarilyincludes,notmerelythesurfaceoftheearthasdistinguishedfromthewaterandtheair,butthewholematerialuniverseoutsideofmanhimself,foritisonlybyhavingaccesstoland,fromwhichhisverybodyisdrawn,thatmancancomeincontactwithorusenature.Thetermlandembraces,

inshort,allnaturalmaterials,forces,andopportunities,and,therefore,nothingthatisfreelysuppliedbynaturecanbeproperlyclassedascapital.Afertilefield,arichveinofore,afallingstreamwhichsuppliespower,maygivetothepossessoradvantagesequivalenttothepossessionofcapital,buttoclasssuchthingsascapitalwouldbetoputanendtothedistinctionbetweenlandandcapital,and,sofarastheyrelatetoeachother,tomakethetwotermsmeaningless.Thetermlabor,inlikemanner,includesallhumanexertion,andhencehumanpowerswhethernaturaloracquiredcanneverproperlybeclassedascapital.Incommonparlanceweoftenspeakofaman’sknowledge,skill,orindustryasconstitutinghiscapital;butthisisevidentlyametaphoricaluseoflanguagethatmustbeeschewedinreasoningthataimsatexactness.Superiorityinsuchqualitiesmayaugmenttheincomeofanindividualjustascapitalwould,andanincreaseintheknowledge,skill,orindustryofacommunitymayhavethesameeffectinincreasingitsproductionaswouldanincreaseofcapital;butthiseffectisduetotheincreasedpoweroflaborandnottocapital.Increasedvelocitymaygivetotheimpactofacannonballthesameeffectasincreasedweight,yet,nevertheless,weightisonethingandvelocityanother.

Thuswemustexcludefromthecategoryofcapitaleverythingthatmaybeincludedeitheraslandorlabor.Doingso,thereremainonlythingswhichareneitherlandnorlabor,butwhichhaveresultedfromtheunionofthesetwooriginalfactorsofproduction.Nothingcanbeproperlycapitalthatdoesnotconsistofthesethatistosay,nothingcanbecapitalthatisnotwealth.

Butitisfromambiguitiesintheuseofthisinclusivetermwealththatmanyoftheambiguitieswhichbesetthetermcapitalarederived.

Ascommonlyusedtheword”wealth“isappliedtoanythinghavinganexchangevalue.Butwhenusedasatermofpoliticaleconomyitmustbelimitedtoamuchmoredefinitemeaning,becausemanythingsarecommonlyspokenofaswealthwhichintakingaccountofcollectiveor

generalwealthcannotbeconsideredaswealthatall.Suchthingshaveanexchangevalue,andarecommonlyspokenofaswealth,insomuchastheyrepresentasbetweenindividuals,orbetweensetsofindividuals,thepowerofobtainingwealth;buttheyarenottrulywealth,inasmuchastheirincreaseordecreasedoesnotaffectthesumofwealth.Sucharebonds,mortgages,promissorynotes,bankbills,orotherstipulationsforthetransferofwealth.Suchareslaves,whosevaluerepresentsmerelythepowerofoneclasstoappropriatetheearningsofanotherclass.Sucharelands,orothernaturalopportunities,thevalueofwhichisbuttheresultoftheacknowledgmentinfavorofcertainpersonsofanexclusiverighttotheiruse,andwhichrepresentsmerelythepowerthusgiventotheownerstodemandashareofthewealthproducedbythosewhousethem.Increaseintheamountofbonds,mortgages,notes,orbankbillscannotincreasethewealthofthecommunitythatincludesaswellthosewhopromisetopayasthosewhoareentitledtoreceive.Theenslavementofapartoftheirnumbercouldnotincreasethewealthofapeople,forwhattheenslaversgainedtheenslavedwouldlose.Increaseinlandvaluesdoesnotrepresentincreaseinthecommonwealth,forwhatlandownersgainbyhigherprices,thetenantsorpurchaserswhomustpaythemwilllose.Andallthisrelativewealth,which,incommonthoughtandspeech,inlegislationandlaw,isundistinguishedfromactualwealth,could,withoutthedestructionorconsumptionofanythingmorethanafewdropsofinkandapieceofpaper,beutterlyannihilated.Byenactmentofthesovereignpoliticalpowerdebtsmightbecanceled,slavesemancipated,andlandresumedasthecommonpropertyofthewholepeople,withouttheaggregatewealthbeingdiminishedbythevalueofapinchofsnuff,forwhatsomewouldloseotherswouldgain.TherewouldbenomoredestructionofwealththantherewascreationofwealthwhenElizabethTudorenrichedherfavoritecourtiersbythegrantofmonopolies,orwhenBorisGodoonofmadeRussianpeasantsmerchantableproperty.

Allthingswhichhaveanexchangevalueare,therefore,notwealth,intheonlysenseinwhichthetermcanbeusedinpoliticaleconomy.Onlysuchthingscanbewealththeproductionofwhichincreasesandthe

destructionofwhichdecreasestheaggregateofwealth.Ifweconsiderwhatthesethingsare,andwhattheirnatureis,weshallhavenodifficultyindefiningwealth.

Whenwespeakofacommunityincreasinginwealth—aswhenwesaythatEnglandhasincreasedinwealthsincetheaccessionofVictoria,orthatCaliforniaisawealthiercountrythanwhenitwasaMexicanterritory—wedonotmeantosaythatthereismoreland,orthatthenaturalpowersofthelandaregreater,orthattherearemorepeople,forwhenwewishtoexpressthatideawespeakofincreaseofpopulation;orthatthedebtsorduesowingbysomeofthesepeopletoothersoftheirnumberhaveincreased;butwemeanthatthereisanincreaseofcertaintangiblethings,havinganactualandnotmerelyarelativevalue—suchasbuildings,cattle,tools,machinery,agriculturalandmineralproducts,manufacturedgoods,ships,wagons,furniture,andthelike.Theincreaseofsuchthingsconstitutesanincreaseofwealth;theirdecreaseisalesseningofwealth;andthecommunitythat,inproportiontoitsnumbers,hasmostofsuchthingsisthewealthiestcommunity.Thecommoncharacterofthesethingsisthattheyconsistofnaturalsubstancesorproductswhichhavebeenadaptedbyhumanlabortohumanuseorgratification,theirvaluedependingontheamountoflaborwhichupontheaveragewouldberequiredtoproducethingsoflikekind.

Thuswealth,asalonethetermcanbeusedinpoliticaleconomy,consistsofnaturalproductsthathavebeensecured,moved,combined,separated,orinotherwaysmodifiedbyhumanexertion,soastofitthemforthegratificationofhumandesires.Itis,inotherwords,laborimpresseduponmatterinsuchawayastostoreup,asthebeatofthesunisstoredupincoal,thepowerofhumanlabortoministertohumandesires.Wealthisnotthesoleobjectoflabor,forlaborisalsoexpendedinministeringdirectlytodesire;butitistheobjectandresultofwhatwecallproductivelabor—thatis,laborwhichgivesvaluetomaterialthings.Nothingwhichnaturesuppliestomanwithouthislaboriswealth,noryetdoestheexpenditureoflaborresultinwealthunlessthereisatangibleproduct

whichhasandretainsthepowerofministeringtodesire.

Now,ascapitaliswealthdevotedtoacertainpurpose,nothingcanbecapitalwhichdoesnotfallwithinthisdefinitionofwealth.Byrecognizingandkeepingthisinmind,wegetridofmisconceptionswhichvitiateallreasoninginwhichtheyarepermitted,whichbefogpopularthought,andhaveledintomazesofcontradictionevenacutethinkers.

Butthoughallcapitaliswealth,allwealthisnotcapital.Capitalisonlyapartofwealth—thatpart,namely,whichisdevotedtotheaidofproduction.Itisindrawingthislinebetweenthewealththatisandthewealththatisnotcapitalthatasecondclassofmisconceptionsarelikelytooccur.

TheerrorswhichIhavebeenpointingout,andwhichconsistinconfoundingwithwealthandcapitalthingsessentiallydistinct,orwhichhavebutarelativeexistence,arenowmerelyvulgarerrors.Theyarewidespread,itistrue,andhaveadeeproot,beingheld,notmerelybythelesseducatedclasses,butseeminglybyalargemajorityofthosewhoinsuchadvancedcountriesasEnglandandtheUnitedStatesmoldandguidepublicopinion,makethelawsinparliaments,congressesandlegislatures,andadministertheminthecourts.Theycropout,moreover,inthedisquisitionsofmanyofthoseflabbywriterswhohaveburdenedthepressanddarkenedcounselbynumerousvolumeswhicharedubbedpoliticaleconomy,andwhichpassastextbookswiththeignorantandasauthoritywiththosewhodonotthinkforthemselves.Nevertheless,theyareonlyvulgarerrors,inasmuchastheyreceivenocountenancefromthebestwritersonpoliticaleconomy.Byoneofthoselapseswhichflawhisgreatworkandstrikinglyevincetheimperfectionsofthehighesttalent,AdamSmithcountsascapitalcertainpersonalqualities,aninclusionwhichisnotconsistentwithhisoriginaldefinitionofcapitalasstockfromwhichrevenueisexpected.Butthiserrorhasbeenavoidedbyhismosteminentsuccessors,andinthedefinitions,previouslygiven,ofRicardo,McCulloch,andMill,itisnotinvolved.Neitherintheir

definitionsnorinthatofSmithisinvolvedthevulgarerrorwhichconfoundsasrealcapitalthingswhichareonlyrelativelycapital,suchasevidencesofdebt,landvalues,etc.Butastothingswhicharereallywealth,theirdefinitionsdifferfromeachother,andwidelyfromthatofSmith,astowhatisandwhatisnottobeconsideredascapital.Thestockofajewelerwould,forinstance,beincludedascapitalbythedefinitionofSmith,andthefoodorclothinginpossessionofalaborerwouldbeexcluded.ButthedefinitionsofRicardoandMcCullochwouldexcludethestockofthejeweler,aswouldalsothatofMill,ifunderstoodasmostpersonswouldunderstandthewordsIhavequoted.Butasexplainedbyhim,itisneitherthenaturenorthedestinationofthethingsthemselveswhichdetermineswhethertheyareorarenotcapital,buttheintentionoftheownertodevoteeitherthethingsorthevaluereceivedfromtheirsaletothesupplyofproductivelaborwithtools,materials,andmaintenance.Allthesedefinitions,however,agreeinincludingascapitaltheprovisionsandclothingofthelaborer,whichSmithexcludes.

Letusconsiderthesethreedefinitions,whichrepresentthebestteachingsofcurrentpoliticaleconomy:

ToMcCulloch’sdefinitionofcapitalas”allthoseportionsoftheproduceofindustrythatmaybedirectlyemployedeithertosupporthumanexistenceortofacilitateproduction,“thereareobviousobjections.Onemaypassalonganyprincipalstreetinathrivingtownorcityandseestoresfilledwithallsortsofvaluablethings,which,thoughtheycannotbeemployedeithertosupporthumanexistenceortofacilitateproduction,undoubtedlyconstitutepartofthecapitalofthestorekeepersandpartofthecapitalofthecommunity.Andbecanalsoseeproductsofindustrycapableofsupportinghumanexistenceorfacilitatingproductionbeingconsumedinostentationoruselessluxury.Surelythese,thoughtheymight,donotconstitutepartofcapital.

Ricardo’sdefinitionavoidsincludingascapitalthingswhichmightbebutarenotemployedinproduction,bycoveringonlysuchasare

employed.ButitisopentothefirstobjectionmadetoMcCulloch’s.Ifonlywealththatmaybe,orthatis,orthatisdestinedtobe,usedinsupportingproducers,orassistingproduction,iscapital,thenthestocksofjewelers,toydealers,tobacconists,confectioners,picturedealers,etc.—infact,allstocksthatconsistof,andallstocksinsofarastheyconsistofarticlesofluxury,arenotcapital.

IfMill,byremittingthedistinctiontothemindofthecapitalist,avoidsthisdifficulty(whichdoesnotseemtomeclear),itisbymakingthedistinctionsovaguethatnopowershortofomnisciencecouldtellinanygivencountryatanygiventimewhatwasandwhatwasnotcapital.

Butthegreatdefectwhichthesedefinitionshaveincommonisthattheyincludewhatclearlycannotbeaccountedcapital,ifanydistinctionistobemadebetweenlaborerandcapitalist.Fortheybringintothecategoryofcapitalthefood,clothing,etc.,inthepossessionofthedaylaborer,whichhewillconsumewhetherheworksornot,aswellasthestockinthehandsofthecapitalist,withwhichheproposestopaythelaborerforhiswork.

Yet,manifestly,thisisnotthesenseinwhichthetermcapitalisusedbythesewriterswhentheyspeakoflaborandcapitalastakingseparatepartsintheworkofproductionandseparatesharesinthedistributionofitsproceeds;whentheyspeakofwagesasdrawnfromcapital,orasdependingupontheratiobetweenlaborandcapital,orinanyofthewaysinwhichthetermisgenerallyusedbythem.Inallthesecasesthetermcapitalisusedinitscommonlyunderstoodsense,asthatportionofwealthwhichitsownersdonotproposetousedirectlyfortheirowngratification,butforthepurposeofobtainingmorewealth.Inshort,bypoliticaleconomists,ineverythingexcepttheirdefinitionsandfirstprinciples,aswellasbytheworldatlarge,”thatpartofaman’sstock,“tousethewordsofAdamSmith,”whichheexpectstoaffordhimrevenueiscalledhiscapital.“Thisistheonlysenseinwhichthetermcapitalexpressesanyfixedidea—theonlysenseinwhichwecanwithany

clearnessseparateitfromwealthandcontrastitwithlabor.For,ifwemustconsiderascapitaleverythingwhichsuppliesthelaborerwithfood,clothing,shelter,etc.,thentofindalaborerwhoisnotacapitalistweshallbeforcedtohuntupanabsolutelynakedman,destituteevenofasharpenedstick,orofaburrowintheground—asituationinwhich,saveastheresultofexceptionalcircumstances,humanbeingshaveneveryetbeenfound.

Itseemstomethatthevarianceandinexactitudeinthesedefinitionsarisefromthefactthattheideaofwhatcapitalishasbeendeducedfromapreconceivedideaofhowcapitalassistsproduction.Insteadofdeterminingwhatcapitalis,andthenobservingwhatcapitaldoes,thefunctionsofcapitalhavefirstbeenassumed,andthenadefinitionofcapitalmadewhichincludesallthingswhichdoormayperformthosefunctions.Letusreversethisprocess,and,adoptingthenaturalorder,ascertainwhatthethingisbeforesettlingwhatitdoes.Allwearetryingtodo,allthatitisnecessarytodo,istofix,asitwere,themetesandboundsofatermthatinthemainiswellapprehended—tomakedefinite,thatis,sharpandclearonitsverges,acommonidea.

Ifthearticlesofactualwealthexistingatagiventimeinagivencommunitywerepresentedinsitutoadozenintelligentmenwhohadneverreadalineofpoliticaleconomy,itisdoubtfuliftheywoulddifferinrespecttoasingleitem,astowhetheritshouldbeaccountedcapitalornot.Moneywhichitsownerholdsforuseinhisbusinessorinspeculationwouldbeaccountedcapital;moneysetasideforhouseholdorpersonalexpenseswouldnot.Thatpartofafarmer’scropheldforsaleorforseed,ortofeedhishelpinpartpaymentofwages,wouldbeaccountedcapital;thatheldfortheuseofhisownfamilywouldnotbe.Thehorsesandcarriageofahackmanwouldbeclassedascapital,butanequipagekeptforthepleasureofitsownerwouldnot.Sonoonewouldthinkofcountingascapitalthefalsehairontheheadofawoman,thecigarinthemouthofasmoker,orthetoywithwhichachildisplaying;butthestockofahairdealer,ofatobacconist,orofthekeeperofatoystore,wouldbe

unhesitatinglysetdownascapital.Acoatwhichatailorhadmadeforsalewouldbeaccountedcapital,butnotthecoathehadmadeforhimself.Foodinthepossessionofahotelkeeperorarestaurateurwouldbeaccountedcapital,butnotthefoodinthepantryofahousewife,orinthelunchbasketofaworkman.Pigironinthehandsofthesmelter,orfounder,ordealer,wouldbeaccountedcapital,butnotthepigironusedasballastintheholdofayacht.Thebellowsofablacksmith,theloomsofafactory,wouldbecapital,butnotthesewingmachineofawomanwhodoesonlyherownwork;abuildingletforhire,orusedforbusinessorproductivepurposes,butnotahomestead.Inshort,Ithinkweshouldfindthatnow,aswhenDr.AdamSmithwrote,”thatpartofaman’sstockwhichheexpectstoyieldhimarevenueiscalledhiscapital.“And,omittinghisunfortunateslipastopersonalqualities,andqualifyingsomewhathisenumerationofmoney,itisdoubtfulifwecouldbetterlistthedifferentarticlesofcapitalthandidAdamSmithinthepassagewhichinthepreviouspartofthischapterIhavecondensed.

Now,if,afterhavingthusseparatedthewealththatiscapitalfromthewealththatisnotcapital,welookforthedistinctionbetweenthetwoclasses,weshallnotfindittobeastothecharacter,capabilities,orfinaldestinationofthethingsthemselves,ashasbeenvainlyattemptedtodrawit;butitseemstomethatweshallfindittobeastowhethertheyareorarenotinthepossessionoftheconsumer.Sucharticlesofwealthasinthemselves,intheiruses,orintheirproducts,areyettobeexchangedarecapital;sucharticlesofwealthasareinthehandsoftheconsumerarenotcapital.Hence,ifwedefinecapitalaswealthincourseofexchange,understandingexchangetoincludenotmerelythepassingfromhandtohand,butalsosuchtransmutationsasoccurwhenthereproductiveortransformingforcesofnatureareutilizedfortheincreaseofwealth,weshall,Ithink,comprehendallthethingsthatthegeneralideaofcapitalproperlyincludes,andshutoutallitdoesnot.Underthisdefinition,itseemstome,forinstance,willfallallsuchtoolsasarereallycapital.Foritisastowhetheritsservicesorusesaretobeexchangedornotwhichmakesatoolanarticleofcapitalormerelyan

articleofwealth.Thus,thelatheofamanufacturerusedinmakingthingswhicharetobeexchangediscapital,whilethelathekeptbyagentlemanforhisownamusementisnot.Thus,wealthusedintheconstructionofarailroad,apublictelegraphline,astagecoach,atheater,ahotel,etc.,maybesaidtobeplacedinthecourseofexchange.Theexchangeisnoteffectedallatonce,butlittlebylittle,withanindefinitenumberofpeople.Yetthereisanexchange,andthe”consumers“oftherailroad,thetelegraphline,thestagecoach,theaterorhotel,arenottheowners,butthepersonswhofromtimetotimeusethem.

Noristhisdefinitioninconsistentwiththeideathatcapitalisthatpartofwealthdevotedtoproduction.Itistoonarrowanunderstandingofproductionwhichconfinesitmerelytothemakingofthings.Productionincludesnotmerelythemakingofthings,butthebringingofthemtotheconsumer.Themerchantorstorekeeperisthusastrulyaproducerasisthemanufacturer,orfarmer,andhisstockorcapitalisasmuchdevotedtoproductionasistheirs.Butitisnotworthwhilenowtodwelluponthefunctionsofcapital,whichweshallbebetterabletodeterminehereafter.NoristhedefinitionofcapitalIhavesuggestedofanyimportance.Iamnotwritingatextbook,butonlyattemptingtodiscoverthelawswhichcontrolagreatsocialproblem,andifthereaderhasbeenledtoformaclearideaofwhatthingsaremeantwhenwespeakofcapitalmypurposeisserved.

Butbeforeclosingthisdigressionletmecallattentiontowhatisoftenforgotten—namely,thattheterms”wealth,“”capital,“”wages,“andthelike,asusedinpoliticaleconomyareabstractterms,andthatnothingcanbegenerallyaffirmedordeniedofthemthatcannotbeaffirmedordeniedofthewholeclassofthingstheyrepresent.Thefailuretobearthisinmindhasledtomuchconfusionofthought,andpermitsfallacies,otherwisetransparent,topassforobvioustruths.Wealthbeinganabstractterm,theideaofwealth,itmustberemembered,involvestheideaofexchangeability.Thepossessionofwealthtoacertainamountispotentiallythepossessionofanyorallspeciesofwealthtothat

equivalentinexchange.And,consequently,soofcapital.

ThiswasrecognizedincommonspeechinCalifornia,wheretheplacerminersstyledtheirearningstheir”wages,“andspokeofmakinghighwagesorlowwagesaccordingtotheamountofgoldtakenout.

Moneymaybesaidtobeinthehandsoftheconsumerwhendevotedtotheprocurementofgratification,as,thoughnotinitselfdevotedtoconsumption,itrepresentswealthwhichis;andthuswhatinthepreviousparagraphIhavegivenasthecommonclassificationwouldbecoveredbythisdistinction,andwouldbesubstantiallycorrect.Inspeakingofmoneyinthisconnection,Iamofcoursespeakingofcoin,foralthoughpapermoneymayperformallthefunctionsofcoin,itisnotwealth,andcannotthereforebecapital.

[BacktoTableofContents]

ChapterIIIWagesNotDrawnfromCapital,butProducedbytheLabor

Theimportanceofthisdigressionwill,Ithink,becomemoreandmoreapparentasweproceedinourinquiry,butitspertinencytothebranchwearenowengagedinmayatoncebeseen.

Itisatfirstglanceevidentthattheeconomicmeaningofthetermwagesislostsightof,andattentionisconcentrateduponthecommonandnarrowmeaningoftheword,whenitisaffirmedthatwagesaredrawnfromcapital.For,inallthosecasesinwhichthelaborerishisownemployerandtakesdirectlytheproduceofhislaborasitsreward,itisplainenoughthatwagesarenotdrawnfromcapital,butresultdirectlyastheproductofthelabor.If,forinstance,Idevotemylabortogatheringbirds’eggsorpickingwildberries,theeggsorberriesIthusgetaremywages.Surelynoonewillcontendthatinsuchacasewagesaredrawnfromcapital.Thereisnocapitalinthecase.Anabsolutelynakedman,thrownonanislandwherenohumanbeinghasbeforetrod,maygatherbirds’eggsorpickberries.

OrifItakeapieceofleatherandworkitupintoapairofshoes,theshoesaremywages—therewardofmyexertion.Surelytheyarenotdrawnfromcapitaleithermycapitaloranyoneelse’scapital—butarebroughtintoexistencebythelaborofwhichtheybecomethewages;andinobtainingthispairofshoesasthewagesofmylabor,capitalisnotevenmomentarilylessenedoneiota.For,ifwecallintheideaofcapital,mycapitalatthebeginningconsistsofthepieceofleather,thethread,etc.Asmylaborgoeson,valueissteadilyadded,until,whenmylaborresultsinthefinishedshoes,Ihavemycapitalplusthedifferenceinvaluebetweenthematerialandtheshoes.Inobtainingthisadditionalvalue—mywages—howiscapitalatanytimedrawnupon?

AdamSmith,whogavethedirectiontoeconomicthoughtthathasresultedinthecurrentelaboratetheoriesoftherelationbetweenwagesandcapital,recognizedthefactthatinsuchsimplecasesasIhaveinstanced,wagesaretheproduceoflabor,andthusbeginshischapteruponthewagesoflabor(Chap.VIII):

”Theproduceoflaborconstitutesthenaturalrecompenseorwagesoflabor.Inthatoriginalstateofthingswhichprecedesboththeappropriationoflandandtheaccumulationofstock,thewholeproduceoflaborbelongstothelaborer.Hehasneitherlandlordnormastertosharewithhim.“

HadthegreatScotchmantakenthisastheinitialpointofhisreasoning,andcontinuedtoregardtheproduceoflaborasthenaturalwagesoflabor,andthelandlordandmasterbutassharers,hisconclusionswouldhavebeenverydifferent,andpoliticaleconomyto-daywouldnotembracesuchamassofcontradictionsandabsurdities;butinsteadoffollowingthetruthobviousinthesimplemodesofproductionasaclewthroughtheperplexitiesofthemorecomplicatedforms,hemomentarilyrecognizesit,onlyimmediatelytoabandonit,andstatingthat”ineverypartofEuropetwentyworkmenserveunderamasterforonethatisindependent,“herecommencestheinquiryfromapointofviewinwhichthemasterisconsideredasprovidingfromhiscapitalthewagesofhisworkmen.

Itisevidentthatinthusplacingtheproportionofself-employingworkmenasbutoneintwenty,AdamSmithhadinmindbutthemechanicarts,andthat,includingalllaborers,theproportionwhotaketheirearningsdirectly,withouttheinterventionofanemployer,must,eveninEuropeahundredyearsago,havebeenmuchgreaterthanthis.For,besidestheindependentlaborerswhoineverycommunityexistinconsiderablenumbers,theagricultureoflargedistrictsofEuropehas,sincethetimeoftheRomanEmpire,beencarriedonbythemetayersystem,underwhichthecapitalistreceiveshisreturnfromthelaborer

insteadofthelaborerfromthecapitalist.Atanyrate,intheUnitedStates,whereanygenerallawofwagesmustapplyasfullyasinEurope,andwhereinspiteoftheadvanceofmanufacturesaverylargepartofthepeopleareyetself-employingfarmers,theproportionoflaborerswhogettheirwagesthroughanemployermustbecomparativelysmall.

Butitisnotnecessarytodiscusstheratioinwhichself-employinglaborersanywherestandtohiredlaborers,norisitnecessarytomultiplyillustrationsofthetruismthatwherethelaborertakesdirectlyhiswagestheyaretheproductofhislabor,forassoonasitisrealizedthatthetermwagesincludesalltheearningsoflabor,aswellwhentakendirectlybythelaborerintheresultsofhislaboraswhenreceivedfromanemployer,itisevidentthattheassumptionthatwagesaredrawnfromcapital,onwhichasauniversaltruthsuchavastsuperstructureisinstandardpolitico-economictreatisessounhesitatinglybuilt,isatleastinlargepartuntrue,andtheutmostthatcanwithanyplausibilitybeaffirmedisthatsomewages(i.e.,wagesreceivedbythelaborerfromanemployer)aredrawnfromcapital.Hisrestrictionofthemajorpremiseatonceinvalidatesallthedeductionsthataremadefromit;butwithoutrestinghere,letusseewhethereveninthisrestrictedsenseitaccordswiththefacts.LetuspickuptheclewwhereAdamSmithdroppedit,andadvancingstepbystep,seewhethertherelationoffactswhichisobviousinthesimplestformsofproductiondoesnotrunthroughthemostcomplex.

Nextinsimplicityto”thatoriginalstateofthings,“ofwhichmanyexamplesmayyetbefound,wherethewholeproduceoflaborbelongstothelaborer,isthearrangementinwhichthelaborer,thoughworkingforanotherperson,orwiththecapitalofanotherperson,receiveshiswagesinkind—thatistosay,inthethingshislaborproduces.Inthiscaseitisasclearasinthecaseoftheself-employinglaborerthatthewagesarereallydrawnfromtheproductofthelabor,andnotatallfromcapital.IfIhireamantogathereggs,topickberries,ortomakeshoes,payinghimfromtheeggs,theberries,ortheshoesthathislaborsecures,therecanbe

noquestionthatthesourceofthewagesisthelaborforwhichtheyarepaid.Ofthisformofhiringisthesaer-and-daerstocktenancy,treatedofwithsuchperspicuitybySirHenryMaineinhis”EarlyHistoryofInstitutions,“andwhichsoclearlyinvolvedtherelationofemployerandemployedastorendertheacceptorofcattlethemanorvassalofthecapitalistwhothusemployedhim.ItwasonsuchtermsasthesethatJacobworkedforLaban,andtothisday,evenincivilizedcountries,itisnotaninfrequentmodeofemployinglabor.Thefarmingoflandonshares,whichprevailstoaconsiderableextentinthesouthernstatesoftheUnionandinCalifornia,themetayersystemofEurope,aswellasthemanycasesinwhichsuperintendents,salesmen,etc.,arepaidbyapercentageofprofits,whataretheybuttheemploymentoflaborforwageswhichconsistofpartofitsproduce?

Thenextstepintheadvancefromsimplicitytocomplexityiswherethewages,thoughestimatedinkind,arepaidinanequivalentofsomethingelse.Forinstance,onAmericanwhalingshipsthecustomisnottopayfixedwages,buta”lay,“orproportionofthecatch,whichvariesfromasixteenthtoatwelfthtothecaptaindowntoathree-hundredthtothecabinboy.Thus,whenawhaleshipcomesintoNewBedfordorSanFranciscoafterasuccessfulcruise,shecarriesinherholdthewagesofhercrew,aswellastheprofitsofherowners,andanequivalentwhichwillreimbursethemforallthestoresusedupduringthevoyage.Cananythingbeclearerthanthatthesewages—thisoilandbonewhichthecrewofthewhalerhavetaken—havenotbeendrawnfromcapital,butarereallyapartoftheproduceoftheirlabor?Noristhisfactchangedorobscuredintheslightestdegreewhere,asamatterofconvenience,insteadofdividingupbetweenthecrewtheirproportionoftheoilandbone,thevalueofeachman’sshareisestimatedatthemarketprice,andheispaidforitinmoney.Themoneyisbuttheequivalentoftherealwages,theoilandbone.Innowayisthereanyadvanceofcapitalinthispayment.Theobligationtopaywagesdoesnotaccrueuntilthevaluefromwhichtheyaretobepaidisbroughtintoport.Atthemomentwhentheownertakesfromhiscapitalmoneytopaythecrewheaddstohis

capitaloilandbone.

Sofartherecanbenodispute.Letusnowtakeanotherstep,whichwillbringustotheusualmethodofemployinglaborandpayingwages.

TheFaralloneIslands,offtheBayofSanFrancisco,areahatchinggroundofsea-fowl,andacompanywhoclaimtheseislandsemploymenintheproperseasontocollecttheeggs.Theymightemploythesemenforaproportionoftheeggstheygather,asisdoneinthewhalefishery,andprobablywoulddosoifthereweremuchuncertaintyattendingthebusiness;butasthefowlareplentifulandtame,andaboutsomanyeggscanbegatheredbysomuchlabor,theyfinditmoreconvenienttopaytheirmenfixedwages.Themengooutandremainontheislands,gatheringtheeggsandbringingthemtoalanding,whence,atintervalsofafewdays,theyaretakeninasmallvesseltoSanFranciscoandsold.Whentheseasonisoverthemenreturnandarepaidtheirstipulatedwagesincoin.Doesnotthistransactionamounttothesamethingasif,insteadofbeingpaidincoin,thestipulatedwageswerepaidinanequivalentoftheeggsgathered?Doesnotthecoinrepresenttheeggs,bythesaleofwhichitwasobtained,andarenotthesewagesasmuchtheproductofthelaborforwhichtheyarepaidastheeggswouldbeinthepossessionofamanwhogatheredthemforhimselfwithouttheinterventionofanyemployer?

Totakeanotherexample,whichshowsbyreversiontheidentityofwagesinmoneywithwagesinkind.InSanBuenaventuralivesamanwhomakesanexcellentlivingbyshootingfortheiroilandskinsthecommonhairsealswhichfrequenttheislandsformingtheSantaBarbaraChannel.WhenonthesesealingexpeditionshetakestwoorthreeChinamenalongtohelphim,whomatfirsthepaidwhollyincoin.ButitseemsthattheChinesehighlyvaluesomeoftheorgansoftheseal,whichtheydryandpulverizeformedicine,aswellasthelonghairsinthewhiskersofthemaleseal,which,whenoveracertainlength,theygreatlyesteemforsomepurposethattooutsidebarbariansisnotveryclear.Andthisman

soonfoundthattheChinamenwereverywillingtotakeinsteadofmoneythesepartsofthesealskilled,sothatnow,inlargepart,hethuspaysthemtheirwages.

Now,isnotwhatmaybeseeninallthesecases—theidentityofwagesinmoneywithwagesinkind—trueofallcasesinwhichwagesarepaidforproductivelabor?Isnotthefundcreatedbythelaborreallythefundfromwhichthewagesarepaid?

Itmay,perhaps,besaid:”Thereisthisdifferencewhereamanworksforhimself,orwhere,whenworkingforanemployer,hetakeshiswagesinkind,hiswagesdependupontheresultofhislabor.Shouldthat,fromanymisadventure,provefutile,hegetsnothing.Whenheworksforanemployer,however,hegetshiswagesanyhow—theydependupontheperformanceofthelabor,notupontheresultofthelabor.“Butthisisevidentlynotarealdistinction.Forontheaverage,thelaborthatisrenderedforfixedwagesnotonlyyieldstheamountofthewages,butmore;elseemployerscouldmakenoprofit.Whenwagesarefixed,theemployertakesthewholeriskandiscompensatedforthisassurance,forwageswhenfixedarcalwayssomewhatlessthanwagescontingent.Butthoughwhenfixedwagesarestipulatedthelaborerwhohasperformedhispartofthecontracthasusuallyalegalclaimupontheemployer,itisfrequently,ifnotgenerally,thecasethatthedisasterwhichpreventstheemployerfromreapingbenefitfromthelaborpreventshimfrompayingthewages.Andinoneimportantdepartmentofindustrytheemployerislegallyexemptincaseofdisaster,althoughthecontractbeforwagescertainandnotcontingent.Forthemaximofadmiraltylawis,that”freightisthemotherofwages,“andthoughtheseamanmayhaveperformedhispart,thedisasterwhichpreventstheshipfromearningfreightdepriveshimofclaimforhiswages.

InthislegalmaximisembodiedthetruthforwhichIamcontending.Productionisalwaysthemotherofwages.Withoutproduction,wageswouldnotandcouldnotbe.Itisfromtheproduceoflabor,notfromthe

advancesofcapitalthatwagescome.

Whereverweanalyzethefactsthiswillbefoundtobetrue.Forlaboralwaysprecedeswages.Thisisasuniversallytrueofwagesreceivedbythelaborerfromanemployerasitisofwagestakendirectlybythelaborerwhoishisownemployer.Intheoneclassofcasesasintheother,rewardisconditioneduponexertion.Paidsometimesbytheday,oftenerbytheweekormonth,occasionallybytheyear,andinmanybranchesofproductionbythepiece,thepaymentofwagesbyanemployertoanemployeealwaysimpliesthepreviousrenderingoflaborbytheemployeeforthebenefitoftheemployer,forthefewcasesinwhichadvancepaymentsaremadeforpersonalservicesareevidentlyreferableeithertocharityortoguaranteeandpurchase.Thename”retainer,“giventoadvancepaymentstolawyers,showsthetruecharacterofthetransaction,asdoesthename”bloodmoney“givenin’longshorevernaculartoapaymentwhichisnominallywagesadvancedtosailors,butwhichinrealityispurchasemoney—bothEnglishandAmericanlawconsideringasailorasmuchachattelasapig.

Idwellonthisobviousfactthatlaboralwaysprecedeswages,becauseitisall-importanttoanunderstandingofthemorecomplicatedphenomenaofwagesthatitshouldbekeptinmind.Andobviousasitis,asIhaveputit,theplausibilityofthepropositionthatwagesaredrawnfromcapital—apropositionthatismadethebasisforsuchimportantandfar-reachingdeductions—comesinthefirstinstancefromastatementthatignoresandleadstheattentionawayfromthistruth.Thatstatementis,thatlaborcannotexertitsproductivepowerunlesssuppliedbycapitalwithmaintenance.Theunwaryreaderatoncerecognizesthefactthatthelaborermusthavefood,clothing,etc.,inordertoenablehimtoperformthework,andhavingbeentoldthatthefood,clothing,etc.,usedbyproductivelaborersarecapital,heassentstotheconclusionthattheconsumptionofcapitalisnecessarytotheapplicationoflabor,andfromthisitisbutanobviousdeductionthatindustryislimitedbycapital—thatthedemandforlabordependsuponthesupplyofcapital,andhencethat

wagesdependupontheratiobetweenthenumberoflaborerslookingforemploymentandtheamountofcapitaldevotedtohiringthem.

ButIthinkthediscussioninthepreviouschapterwillenableanyonetoseewhereinliesthefallacyofthisreasoning—afallacywhichhasentangledsomeofthemostacutemindsinaweboftheirownspinning.Itisintheuseofthetermcapitalintwosenses.Intheprimarypropositionthatcapitalisnecessarytotheexertionofproductivelabor,theterm“capital”isunderstoodasincludingallfood,clothing,shelter,etc.;whereas,in,thedeductionsfinallydrawnfromit,thetermisusedinitscommonandlegitimatemeaningofwealthdevoted,nottotheimmediategratificationofdesire,buttotheprocurementofmorewealth—ofwealthinthehandsofemployersasdistinguishedfromlaborers.Theconclusionisnomorevalidthanitwouldbefromtheacceptanceofthepropositionthatalaborercannotgotoworkwithouthisbreakfastandsomeclothes,toinferthatnomorelaborerscangotoworkthanemployersfirstfurnishwithbreakfastsandclothes.Now,thefactisthatlaborersgenerallyfurnishtheirownbreakfastsandtheclothesinwhichtheygotowork;andthefurtherfactis,thatcapital(inthesenseinwhichthewordisusedindistinctiontolabor)inexceptionalcasessometimesmay,butisnevercompelledtomakeadvancestolaborbeforetheworkbegins.Ofallthevastnumberofunemployedlaborersinthecivilizedworldto-day,thereisprobablynotasingleonewillingtoworkwhocouldnotbeemployedwithoutanyadvanceofwages.Agreatproportionwoulddoubtlessgladlygotoworkontermswhichdidnotrequirethepaymentofwagesbeforetheendofamonth;itisdoubtfulifthereareenoughtobecalledaclasswhowouldnotgotoworkandwaitfortheirwagesuntiltheendoftheweek,asmostlaborershabituallydo;whiletherearecertainlynonewhowouldnotwaitfortheirwagesuntiltheendoftheday,orifyouplease,untilthenextmealhour.Theprecisetimeofthepaymentofwagesisimmaterial;theessentialpoint—thepointIlaystresson—isthatitisaftertheperformanceofwork.

Thepaymentofwages,therefore,alwaysimpliesthepreviousrendering

oflabor.Now,whatdoestherenderingoflaborinproductionimply?Evidentlytheproductionofwealth,which,ifitistobeexchangedorusedinproduction,iscapital.Therefore,thepaymentofcapitalinwagespresupposesaproductionofcapitalbythelaborforwhichthewagesarepaid.Andastheemployergenerallymakesaprofit,thepaymentofwagesis,sofarasheisconcerned,butthereturntothelaborerofaportionofthecapitalhehasreceivedfromthelabor.Sofarastheemployeeisconcerned,itisbutthereceiptofaportionofthecapitalhislaborhaspreviouslyproduced.Asthevaluepaidinthewagesisthusexchangedforavaluebroughtintobeingbythelabor,howcanitbesaidthatwagesaredrawnfromcapitaloradvancedbycapital?Asintheexchangeoflaborforwagestheemployeralwaysgetsthecapitalcreatedbythelaborbeforehepaysoutcapitalinthewages,atwhatpointishiscapitallessenedeventemporarily?

Bringthequestiontothetestoffacts.Take,forinstance,anemployingmanufacturerwhoisengagedinturningrawmaterialintofinishedproducts—cottonintocloth,ironintohardware,leatherintoboots,orsoon,asmaybe,andwhopayshishands,asisgenerallythecase,onceaweek.MakeanexactinventoryofhiscapitalonMondaymorningbeforethebeginningofwork,anditwillconsistofhisbuildings,machinery,rawmaterials,moneyonband,andfinishedproductsinstock.Suppose,forthesakeofsimplicity,thatheneitherbuysnorsellsduringtheweek,andafterworkhasstoppedandhehaspaidhishandsonSaturdaynight,takeanewinventoryofhiscapital.Theitemofmoneywillbeless,forithasbeenpaidoutinwages;therewillbelessrawmaterial,lesscoal,etc.,andaproperdeductionmustbemadefromthevalueofthebuildingsandmachineryfortheweek’swearandtear.Butifheisdoingaremunerativebusiness,whichmustontheaveragebethecase,theitemoffinishedproductswillbesomuchgreaterastocompensateforallthesedeficienciesandshowinthesummingupanincreaseofcapital.Manifestly,then,thevaluehepaidhishandsinwageswasnotdrawnfromhiscapital,orfromanyoneelse’scapital.Itcame,notfromcapital,butfromthevaluecreatedbythelaboritself.Therewasnomoreadvance

ofcapitalthanifhehadhiredhishandstodigclams,andpaidthemwithapartoftheclamstheydug.Theirwageswereastrulytheproduceoftheirlaboraswerethewagesoftheprimitiveman,when,long“beforetheappropriationoflandandtheaccumulationofstock,”heobtainedanoysterbyknockingitwithastonefromtherocks.

Asthelaborerwhoworksforanemployerdoesnotgethiswagesuntilhehasperformedthework,hiscaseissimilartothatofthedepositorinabankwhocannotdrawmoneyoutuntilhehasputmoneyin.Andasbydrawingoutwhathehaspreviouslyputin,thebankdepositordoesnotlessenthecapitalofthebank,neithercanlaborersbyreceivingwageslesseneventemporarilyeitherthecapitaloftheemployerortheaggregatecapitalofthecommunity.Theirwagesnomorecomefromcapitalthanthechecksofdepositorsaredrawnagainstbankcapital.Itistruethatlaborersinreceivingwagesdonotgenerallyreceivebackwealthinthesameforminwhichtheyhaverenderedit,anymorethanbankdepositorsreceivebacktheidenticalcoinsorbanknotestheyhavedeposited,buttheyreceiveitinequivalentform,andaswearejustifiedinsayingthatthedepositorreceivesfromthebankthemoneyhepaidin,soarewejustifiedinsayingthatthelaborerreceivesinwagesthewealthhehasrenderedinlabor.

Thatthisuniversaltruthissooftenobscured,islargelyduetothatfruitfulsourceofeconomicobscurities,theconfoundingofwealthwithmoney;anditisremarkabletoseesomanyofthosewho,sinceDr.AdamSmithmadetheeggstandonitshead,havecopiouslydemonstratedthefallaciesofthemercantilesystem,fallintodelusionsoftheverysamekindintreatingoftherelationsofcapitalandlabor.Moneybeingthegeneralmediumofexchanges,thecommonfluxthroughwhichalltransmutationsofwealthfromoneformtoanothertakeplace,whateverdifficultiesmayexisttoanexchangewillgenerallyshowthemselvesonthesideofreductiontomoney,andthusitisSometimeseasiertoexchangemoneyforanyotherformofwealththanitistoexchangewealthinaparticularformintomoney,forthereasonthattherearemore

holdersofwealthwhodesiretomakesomeexchangethantherearewhodesiretomakeanyparticularexchange.Andsoaproducingemployerwhohaspaidouthismoneyinwagesmaysometimesfinditdifficulttoturnquicklybackintomoneytheincreasedvalueforwhichhismoneyhasreallybeenexchanged,andisspokenofashavingexhaustedoradvancedhiscapitalinthepaymentofwages.Yet,unlessthenewvaluecreatedbythelaborislessthanthewagespaid,whichcanbeonlyanexceptionalcase,thecapitalwhichhehadbeforeinmoneyhenowhasingoods—ithasbeenchangedinform,butnotlessened.

Thereisonebranchofproductioninregardtowhichtheconfusionsofthoughtwhicharisefromthehabitofestimatingcapitalinmoneyareleastlikelytooccur,inasmuchasitsproductisthegeneralmaterialandstandardofmoney.Anditsohappensthatthisbusinessfurnishesus,almostsidebyside,withillustrationsofproductionpassingfromthesimplesttomostcomplexforms.

IntheearlydaysofCalifornia,asafterwardinAustralia,theplacerminer,whofoundinriverbedorsurfacedeposittheglitteringparticleswhichtheslowprocessesofnaturehadforagesbeenaccumulating,pickeduporwashedouthis“wages”(so,too,hecalledthem)inactualmoney,forcoinbeingscarce,golddustpassedascurrencybyweight,andattheendofthedayhadhiswagesinmoneyinabuckskinbaginhispocket.Therecanbenodisputeastowhetherthesewagescamefromcapitalornot.Theyweremanifestlytheproductofhislabor.Norcouldtherebeanydisputewhentheholderofaspeciallyrichclaimhiredmentoworkforhimandpaidthemoffintheidenticalmoneywhichtheirlaborhadtakenfromgulchorbar.Ascoinbecamemoreabundant,itsgreaterconvenienceinsavingthetroubleandlossofweighingassignedgolddusttotheplaceofacommodity,andwithcoinobtainedbythesaleofthedusttheirlaborhadprocured,theemployingminerpaidoffhishands.Wherehehadcoinenoughtodoso,insteadofsellinghisgolddustattheneareststoreandpayingadealer’sprofit,heretainedituntilhegotenoughtotakeatrip,orsendbyexpresstoSanFrancisco,whereatthe

minthecouldhaveitturnedintocoinwithoutcharge.Whilethusaccumulatinggolddusthewaslesseninghisstockofcoin;justasthemanufacturer,whileaccumulatingastockofgoods,lessenshisstockofmoney.Yetnoonewouldbeobtuseenoughtoimaginethatinthustakingingolddustandpayingoutcointheminerwaslesseninghiscapital.

Butthedepositsthatcouldbeworkedwithoutpreliminarylaborweresoonexhausted,andgoldminingrapidlytookamoreelaboratecharacter.Beforeclaimscouldbeopenedsoastoyieldanyreturndeepshaftshadtobesunk,greatdamsconstructed,longtunnelscutthroughthehardestrock,waterbroughtformilesovermountainridgesandacrossdeepvalleys,andexpensivemachineryputup.Theseworkscouldnotbeconstructedwithoutcapital.Sometimestheirconstructionrequiredyears,duringwhichnoreturncouldbehopedfor,whilethemenemployedhadtobepaidtheirwageseveryweek,oreverymonth.Surely,itwillbesaid,insuchcases,evenifinnoothers,thatwagesdoactuallycomefromcapital;areactuallyadvancedbycapital;andmustnecessarilylessencapitalintheirpayment!Surelyhere,atleast,industryislimitedbycapital,forwithoutcapitalsuchworkscouldnotbecarriedon!Letussee:

Itiscasesofthisclassthatarealwaysinstancedasshowingthatwagesareadvancedfromcapital.Forwherewagesarepaidbeforetheobjectofthelaborisobtained,orisfinished—asinagriculture,whereplowingandsowingmustprecedebyseveralmonthstheharvestingofthecrop;asintheerectionofbuildings,theconstructionofships,railroads,canals,etc.—itisclearthattheownersofthecapitalpaidinwagescannotexpectanimmediatereturn,but,asthephraseis,must“outlayit,”or“lieoutofit”foratime,whichsometimesamountstomanyyears.Andhence,iffirstprinciplesarenotkeptinmind,itiseasytojumptotheconclusionthatwagesareadvancedbycapital.

ButsuchcaseswillnotembarrassthereadertowhominwhathasprecededIhavemademyselfclearlyunderstood.Aneasyanalysiswill

showthattheseinstanceswherewagesarepaidbeforetheproductisfinished,orevenproduced,donotaffordanyexceptiontotheruleapparentwheretheproductisfinishedbeforewagesarepaid.

IfIgotoabrokertoexchangesilverforgold,Ilaydownmysilver,whichhecountsandputsaway,andthenhandsmetheequivalentingold,minushiscommission.Doesthebrokeradvancemeanycapital?Manifestlynot.Whathehadbeforeingoldhenowhasinsilver,plushisprofit.Andashegotthesilverbeforehepaidoutthegold,thereisonhispartnotevenmomentarilyanadvanceofcapital.

Now,thisoperationofthebrokerispreciselyanalogoustowhatthecapitalistdoes,when,insuchcasesaswearenowconsidering,hepaysoutcapitalinwages.Astherenderingoflaborprecedesthepaymentofwages,andastherenderingoflaborinproductionimpliesthecreationofvalue,theemployerreceivesvaluebeforehepaysoutvalue—hebutexchangescapitalofoneformforcapitalofanotherform.Forthecreationofvaluedoesnotdependuponthefinishingoftheproduct;ittakesplaceateverystageoftheprocessofproduction,astheimmediateresultoftheapplicationoflabor,andhence,nomatterhowlongtheprocessinwhichitisengaged,laboralwaysaddstocapitalbyitsexertionbeforeittakesfromcapitalinitswages.

Hereisablacksmithathisforgemakingpicks.Clearlyheismakingcapital—addingpickstohisemployer’scapitalbeforehedrawsmoneyfromitinwages.HereisamachinistorboilermakerworkingonthekeelplatesofaGreatEastern.Isnothealsojustasclearlycreatingvalue—makingcapital?Thegiantsteamship,asthepick,isanarticleofwealth,aninstrumentofproduction,andthoughtheonemaynotbecompletedforyears,whiletheotheriscompletedinafewminutes,eachday’swork,intheonecaseasintheother,isasclearlyaproductionofwealth-anadditiontocapital.Inthecaseofthesteamship,asinthecaseofthepick,itisnotthelastblow,anymorethanthefirstblow,thatcreatesthevalueofthefinishedproduct—thecreationofvalueiscontinuous,it

immediatelyresultsfromtheexertionoflabor.

Weseethisveryclearlywhereverthedivisionoflaborhasmadeitcustomaryfordifferentpartsofthefullprocessofproductiontobecarriedonbydifferentsetsofproducers—thatistosay,whereverweareinthehabitofestimatingtheamountofvaluewhichthelaborexpendedinanypreparatorystageofproductionhascreated.Andamoment’sreflectionwillshowthatthisisthecaseastothevastmajorityofproducts.Takeaship,abuilding,ajackknife,abook,alady’sthimbleoraloafofbread.Theyarefinishedproducts.Buttheywerenotproducedatoneoperationorbyonesetofproducers.Andthisbeingthecase,wereadilydistinguishdifferentpointsorstagesinthecreationofthevaluewhichascompletedarticlestheyrepresent.Whenwedonotdistinguishdifferentpartsinthefinalprocessofproductionwedodistinguishthevalueofthematerials.Thevalueofthesematerialsmayoftenbeagaindecomposedmanytimes,exhibitingasmanyclearlydefinedstepsinthecreationofthefinalvalue.Ateachofthesestepswehabituallyestimateacreationofvalue,anadditiontocapital.Thebatchofbreadwhichthebakeristakingfromtheovenhasacertainvalue.Butthisiscomposedinpartofthevalueoftheflourfromwhichthedoughwasmade.Andthisagainiscomposedofthevalueofthewheat,thevaluegivenbymilling,etc.Ironintheformofpigsisveryfarfrombeingacompletedproduct.Itmustyetpassthroughseveral,or,perhaps,throughmany,stagesofproductionbeforeitresultsinthefinishedarticlesthatweretheultimateobjectsforwhichtheironorewasextractedfromthemine.Yet,isnotpigironcapital?Andsotheprocessofproductionisnotreallycompletedwhenacropofcottonisgathered,noryetwhenitisginnedandpressed;noryetwhenitarrivesatLowellorManchester;noryetwhenitisconvertedintoyarn;noryetwhenitbecomescloth;butonlywhenitisfinallyplacedinthehandsoftheconsumer.Yetateachstepinthisprogressthereisclearlyenoughacreationofvalue—anadditiontocapital.Why,therefore,althoughwedonotsohabituallydistinguishandestimateit,istherenotacreationofvalue—anadditiontocapital-whenthegroundisplowedforthecrop?Isitbecauseitmaypossiblybeabad

seasonandthecropmayfail?Evidentlynot;foralikepossibilityofmisadventureattendseveryoneofthemanystepsintheproductionofthefinishedarticle.Ontheaverageacropissuretocomeup,andsomuchplowingandsowingwillontheaverageresultinsomuchcottonintheboll,assurelyassomuchspinningofcottonyarnwillresultinsomuchcloth.

Inshort,asthepaymentofwagesisalwaysconditionedupontherenderingoflabor,thepaymentofwagesinproduction,nomatterhowlongtheprocess,neverinvolvesanyadvanceofcapital,oreventemporarilylessenscapital.Itmaytakeayear,orevenyears,tobuildaship,butthecreationofvalueofwhichthefinishedshipwillbethesumgoesondaybyday,andhourbyhour,fromthetimethekeelislaidoreventhegroundiscleared.Norbythepaymentofwagesbeforetheshipiscompleted,doesthemasterbuilderlesseneitherhiscapitalorthecapitalofthecommunity,forthevalueofthepartiallycompletedshipstandsinplaceofthevaluepaidoutinwages.Thereisnoadvanceofcapitalinthispaymentofwages,forthelaboroftheworkmenduringtheweekormonthcreatesandrenderstothebuildermorecapitalthanispaidbacktothemattheendoftheweekormonth,asisshownbythefactthatifthebuilderwereatanystageoftheconstructionaskedtosellapartiallycompletedshiphewouldexpectaprofit.

Andso,whenaSutroorSt.GothardtunneloraSuezcanaliscut,thereisnoadvanceofcapital.Thetunnelorcanal,asitiscut,becomescapitalasmuchasthemoneyspentincuttingit—orifyouplease,thepowder,drills,etc.,usedinthework,andthefood,clothes,etc.,usedbytheworkmen—asisshownbythefactthatthevalueofthecapitalstockofthecompanyisnotlessenedascapitalintheseformsisgraduallychangedintocapitalintheformoftunnelorcanal.Onthecontrary,itprobably,andontheaverage,increasesastheworkprogresses,justasthecapitalinvestedinaspeediermodeofproductionwouldontheaverageincrease.

Andthisisobviousinagriculturealso.Thatthecreationofvaluedoesnottakeplaceallatoncewhenthecropisgathered,butstepbystepduringthewholeprocesswhichthegatheringofthecropconcludes,andthatnopaymentofwagesintheinterimlessensthefarmer’scapital,istangibleenoughwhenlandissoldorrentedduringtheprocessofproduction,asaplowedfieldwillbringmorethananunplowedfield,orafieldthathasbeensownmorethanonemerelyplowed.Itistangibleenoughwhengrowingcropsaresold,asissometimesdone,orwherethefarmerdoesnotharvesthimself,butletsacontracttotheownerofharvestingmachinery.Itistangibleinthecaseoforchardsandvineyardswhich,thoughnotyetinbearing,bringpricesproportionatetotheirage.Itistangibleinthecaseofhorses,cattleandsheep,whichincreaseinvalueastheygrowtowardmaturity.Andifnotalwaystangiblebetweenwhatmaybecalledtheusualexchangepointsinproduction,thisincreaseofvalueassurelytakesplacewitheveryexertionoflabor.Hence,wherelaborisrenderedbeforewagesarepaid,theadvanceofcapitalisreallymadebylabor,andisfromtheemployedtotheemployer,notfromtheemployertotheemployed.

“Yet,”itmaybesaid,“insuchcasesaswehavebeenconsideringcapitalisrequired!”Certainly;Idonotdisputethat.Butitisnotrequiredinordertomakeadvancestolabor.Itisrequiredforquiteanotherpurpose.Whatthatpurposeiswemayreadilysee.

Whenwagesarepaidinkind—thatistosay,inwealthofthesamespeciesasthelaborproduces;as,forinstance,ifIhirementocutwood,agreeingtogivethemaswagesaportionofthewoodtheycut,amethodsometimesadoptedbytheownersorlesseesofwoodland,itisevidentthatnocapitalisrequiredforthepaymentofwages.Noryetwhen,forthesakeofmutualconvenience,arisingfromthefactthatalargequantityofwoodcanbemorereadilyandmoreadvantageouslyexchangedthananumberofsmallquantities,Iagreetopaywagesinmoney,insteadofwood,shallIneedanycapital,providedIcanmaketheexchangeofthewoodformoneybeforethewagesaredue.ItisonlywhenIcannotmake

suchanexchange,orsuchanadvantageousexchangeasIdesire,untilIaccumulatealargequantityofwoodthatIshallneedcapital.NoreventhenshallIneedcapitalifIcanmakeapartialortentativeexchangebyborrowingonmywood.IfIcannot,ordonotchoose,eithertosellthewoodortoborrowuponit,andyetwishtogoaheadaccumulatingalargestockofwood,Ishallneedcapital.Butmanifestly,Ineedthiscapital,notforthepaymentofwages,butfortheaccumulationofastockofwood.Likewiseincuttingatunnel.Iftheworkmenwerepaidintunnel(which,ifconvenient,mighteasilybedonebypayingtheminstockofthecompany),nocapitalforthepaymentofwageswouldberequired.Itisonlywhentheundertakerswishtoaccumulatecapitalintheshapeofatunnelthattheywillneedcapital.Torecurtoourfirstillustration:ThebrokertowhomIsellmysilvercannotcarryonhisbusinesswithoutcapital.Buthedoesnotneedthiscapitalbecausehemakesanyadvanceofcapitaltomewhenhereceivesmysilverandhandsmegold.Heneedsitbecausethenatureofthebusinessrequiresthekeepingofacertainamountofcapitalonhand,inorderthatwhenacustomercomeshemaybepreparedtomaketheexchangethecustomerdesires.

Andsoweshallfinditineverybranchofproduction.Capitalhasnevertobesetasideforthepaymentofwageswhentheproduceofthelaborforwhichthewagesarepaidisexchangedassoonasproduced;itisonlyrequiredwhenthisproduceisstoredup,orwhatistotheindividualthesamething,placedinthegeneralcurrentofexchangeswithoutbeingatoncedrawnagainst—thatis,soldoncredit.Butthecapitalthusrequiredisnotrequiredforthepaymentofwages,norforadvancestolabor,asitisalwaysrepresentedintheproduceofthelabor.Itisneverasanemployeroflaborthatanyproducerneedscapital;whenhedoesneedcapital,itisbecausebeisnotonlyanemployeroflabor,butamerchantorspeculatorin,oranaccumulatorof,theproductsoflabor.Thisisgenerallythecasewithemployers.

Torecapitulate:Themanwhoworksforhimselfgetshiswagesinthethingsheproduces,asheproducesthem,andexchangesthisvalueinto

anotherformwheneverbesellstheproduce.Themanwhoworksforanotherforstipulatedwagesinmoneyworksunderacontractofexchange.Healsocreateshiswagesasherendershislabor,buthedoesnotgetthemexceptatstatedtimes,instatedamounts,andinadifferentform.Inperformingthelaborheisadvancinginexchange;whenhegetshiswagestheexchangeiscompleted.Duringthetimeheisearningthewagesheisadvancingcapitaltohisemployer,butatnotime,unlesswagesarepaidbeforeworkisdone,istheemployeradvancingcapitaltohim.Whethertheemployerwhoreceivesthisproduceinexchangeforthewagesimmediatelyre-exchangesit,orkeepsitforawhile,nomorealtersthecharacterofthetransactionthandoesthefinaldispositionoftheproductmadebytheultimatereceiver,whomay,perhaps,beinanotherquarteroftheglobeandattheendofaseriesofexchangesnumberinghundreds.

Industryislimitedbycapital舰.Therecanbenomoreindustrythanissuppliedwithmaterialstoworkupandfoodtoeat.Self-evidentasthethingis,itisoftenforgottenthatthepeopleofacountryaremaintainedandhavetheirwantssuppliednotbytheproduceofpresentlabor,butofpast.Theyconsumewhathasbeenproduced,notwhatisabouttobeproduced.Now,ofwhathasbeenproducedapartonlyisallottedtothesupportofproductivelabor,andtherewillnotandcannotbemoreofthatlaborthantheportionsoallotted(whichisthecapitalofthecountry)canfeedandprovidewiththematerialsandinstrumentsofproduction.”—JohnStuartMill,“PrinciplesofPoliticalEconomy,”Book1,Chap.V,Sec.1.

Ispeakoflaborproducingcapitalforthesakeofgreaterclearness.Whatlaboralwaysprocuresiseitherwealth,whichmayormaynotbecapital,orservices,thecasesinwhichnothingisobtainedbeingmerelyexceptionalcasesofmisadventure.Wheretheobjectofthelaborissimplythegratificationoftheemployer,aswhereIhireamantoblackmyboots,Idonotpaythewagesfromcapital,butfromwealthwhichIhavedevoted,nottoreproductiveuses,buttoconsumptionformyown

satisfaction.Evenifwagesthuspaidbeconsideredasdrawnfromcapital,thenbythatacttheypassfromthecategoryofcapitaltothatofwealthdevotedtothegratificationofthepossessor,aswhenacigardealertakesadozencigarsfromthestockhehasforsaleandputstheminhispocketforhisownuse.

[BacktoTableofContents]

ChapterIVTheMaintenanceofLaborersNotDrawnfromCapital

Butastumblingblockmayyetremain,ormayrecur,inthemindofthereader.

Astheplowmancannoteatthefurrow,norapartiallycompletedsteamengineaidinanywayinproducingtheclothesthemachinistwears,haveInot,inthewordsofJohnStuartMill,“forgottenthatthepeopleofacountryaremaintainedandhavetheirwantssupplied,notbytheproduceofpresentlabor,butofpast?”Or,tousethelanguageofapopularelementarywork—thatofMrs.Fawcett—haveInot“forgottenthatmanymonthsmustelapsebetweenthesowingoftheseedandthetimewhentheproduceofthatseedisconvertedintoaloafofbread,”andthat“itis,therefore,evidentthatlaborerscannotliveuponthatwhichtheirlaborisassistingtoproduce,butaremaintainedbythatwealthwhichtheirlabor,orthelaborofothers,haspreviouslyproduced,whichwealthiscapital?”

Theassumptionmadeinthesepassages—theassumptionthatitissoself-evidentthatlabormustbesubsistedfromcapitalthatthepropositionhasbuttobestatedtocompelrecognition—runsthroughthewholefabricofcurrentpoliticaleconomy.Andsoconfidentlyisitheldthatthemaintenanceoflaborisdrawnfromcapitalthatthepropositionthat”populationregulatesitselfbythefundswhicharetoemployit,and,therefore,alwaysincreasesordiminisheswiththeincreaseordiminutionofcapital,“isregardedasequallyaxiomatic,andinitsturnmadethebasisofimportantreasoning.

Yetbeingresolved,thesepropositionsareseentobe,notself-evident,butabsurd;fortheyinvolvetheideathatlaborcannotbeexerteduntiltheproductsoflaboraresaved—thusputtingtheproductbeforetheproducer.

Andbeingexamined,theywillbeseentoderivetheirapparentplausibilityfromaconfusionofthought.

Ihavealreadypointedoutthefallacy,concealedbyanerroneousdefinition,whichunderliesthepropositionthatbecausefood,raimentandshelterarenecessarytoproductivelabor,thereforeindustryislimitedbycapital.Tosaythatamanmusthavehisbreakfastbeforegoingtoworkisnottosaythathecannotgotoworkunlessacapitalistfurnisheshimwithabreakfast,forhisbreakfastmay,andinpointoffactinanycountrywherethereisnotactualfaminewill,comenotfromwealthsetapartfortheassistanceofproduction,butfromwealthsetapartforsubsistence.And,ashasbeenpreviouslyshown,food,clothing,etc.—inshort,allarticlesofwealth—areonlycapitalsolongastheyremaininthepossessionofthosewhopropose,nottoconsume,buttoexchangethemforothercommoditiesorforproductiveservices,andceasetobecapitalwhentheypassintothepossessionofthosewhowillconsumethem;forinthattransactiontheypassfromthestockofwealthheldforthepurposeofprocuringotherwealth,andpassintothestockofwealthheldforpurposesofgratification,irrespectiveofwhethertheirconsumptionwillaidintheproductionofwealthornot.Unlessthisdistinctionispreserveditisimpossibletodrawthelinebetweenthewealththatiscapitalandthewealththatisnotcapital,evenbyremittingthedistinctiontothe”mindofthepossessor,“asdoesJohnStuartMill.Formendonoteatorabstain,wearclothesorgonaked,astheyproposetoengageinproductivelaborornot.Theyeatbecausetheyarehungry,andwearclothesbecausetheywouldbeuncomfortablewithoutthem.Takethefoodonthebreakfasttableofalaborerwhowillworkornotthatdayashegetstheopportunity.Ifthedistinctionbetweencapitalandnon-capitalbethesupportofproductivelabor,isthisfoodcapitalornot?ItisasimpossibleforthelaborerhimselfasforanyphilosopheroftheRicardo-Millschooltotell.Noryetcanitbetoldwhenitgetsintohisstomach;nor,supposingthathedoesnotgetworkatfirst,butcontinuesthesearch,canitbetolduntilithaspassedintothebloodandtissues.Yetthemanwilleathisbreakfastallthesame.

But,thoughitwouldbelogicallysufficient,itishardlysafetoresthereandleavetheargumenttoturnonthedistinctionbetweenwealthandcapital.Norisitnecessary.Itseemstomethatthepropositionthatpresentlabormustbemaintainedbytheproduceofpastlaborwilluponanalysisprovetobetrueonlyinthesensethattheafternoon’slabormustbeperformedbytheaidofthenoondaymeal,orthatbeforeyoueattheharehemustbecaughtandcooked.Andthis,manifestly,isnotthesenseinwhichthepropositionisusedtosupporttheimportantreasoningthatismadetohingeuponit.Thatsenseis,thatbeforeaworkwhichwillnotimmediatelyresultinwealthavailableforsubsistencecanbecarriedon,theremustexistsuchastockofsubsistenceaswillsupportthelaborersduringtheprocess.Letusseeifthisbetrue:

ThecanoewhichRobinsonCrusoemadewithsuchinfinitetoilandpainswasaproductioninwhichhislaborcouldnotyieldanimmediatereturn.Butwasitnecessarythat,beforehecommenced,heshouldaccumulateastockoffoodsufficienttomaintainhimwhilehefelledthetree,hewedoutthecanoe,andfinallylaunchedherintothesea?Notatall.Itwasnecessaryonlythatheshoulddevotepartofhistimetotheprocurementoffoodwhilehewasdevotingpartofhistimetothebuildingandlaunchingofthecanoe.Orsupposingahundredmentobelanded,withoutanystockofprovisions,inanewcountry.Willitbenecessaryforthemtoaccumulateaseason’sstockofprovisionsbeforetheycanbegintocultivatethesoil?Notatall.Itwillbenecessaryonlythatfish,game,berries,etc.,shallbesoabundantthatthelaborofapartofthehundredmaysufficetofurnishdailyenoughoftheseforthemaintenanceofall,andthatthereshallbesuchasenseofmutualinterest,orsuchacorrelationofdesires,asshallleadthosewhointhepresentgetthefoodtodivide(exchange)withthosewhoseeffortsaredirectedtofuturerecompense.

Whatistrueinthesecasesistrueinallcases.Itisnotnecessarytotheproductionofthingsthatcannotbeusedassubsistence,orcannotbeimmediatelyutilized,thatthereshouldhavebeenapreviousproduction

ofthewealthrequiredforthemaintenanceofthelaborerswhiletheproductionisgoingon.Itisonlynecessarythatthereshouldbe,somewherewithinthecircleofexchange,acontemporaneousproductionofsufficientsubsistenceforthelaborers,andawillingnesstoexchangethissubsistenceforthethingonwhichthelaborisbeingbestowed.

Andasamatteroffactisitnottrue,inanynormalconditionofthings,thatconsumptionissupportedbycontemporaneousproduction?

Hereisaluxuriousidler,whodoesnoproductiveworkeitherwithheadorhand,butlives,wesay,uponwealthwhichhisfatherlefthimsecurelyinvestedingovernmentbonds.Doeshissubsistence,asamatteroffact,comefromwealthaccumulatedinthepastorfromtheproductivelaborthatisgoingonaroundhim?Onhistablearenew-laideggs,butterchurnedbutafewdaysbefore,milkwhichthecowgavethismorning,fishwhichtwenty-fourhoursagowereswimminginthesea,meatwhichthebutcherboyhasjustbroughtintimetobecooked,vegetablesfreshfromthegarden,andfruitfromtheorchard—inshort,hardlyanythingthathasnotrecentlyleftthehandoftheproductivelaborer(forinthiscategorymustbeincludedtransportersanddistributorsaswellasthosewhoareengagedinthefirststagesofproduction),andnothingthathasbeenproducedforanyconsiderablelengthoftime,unlessitmaybesomebottlesofoldwine.Whatthismaninheritedfromhisfather,andonwhichwesayhelives,isnotactuallywealthatall,butonlythepowerofcommandingwealthasothersproduceit.Anditisfromthiscontemporaneousproductionthathissubsistenceisdrawn.

ThefiftysquaremilesofLondonundoubtedlycontainmorewealththanwithinthesamespaceanywhereelseexists.YetwereproductivelaborinLondonabsolutelytocease,withinafewhourspeoplewouldbegintodielikerottensheep,andwithinafewweeks,oratmostafewmonths,hardlyonewouldbeleftalive.Foranentiresuspensionofproductivelaborwouldbeadisastermoredreadfulthaneveryetbefellabeleagueredcity.Itwouldnotbeamereexternalwallofcircumvallation,suchas

TitusdrewaroundJerusalem,whichwouldpreventtheconstantincomingofthesuppliesonwhichagreatcitylives,butitwouldbethedrawingofasimilarwallaroundeachhousehold.Imaginesuchasuspensionoflaborinanycommunity,andyouwillseehowtrueitisthatmankindreallylivesfromhandtomouth;thatitisthedailylaborofthecommunitythatsuppliesthecommunitywithitsdailybread.

JustasthesubsistenceofthelaborerswhobuiltthePyramidswasdrawnnotfromapreviouslyboardedstock,butfromtheconstantlyrecurringcropsoftheNileValley;justasamoderngovernmentwhenitundertakesagreatworkofyearsdoesnotappropriatetoitwealthalreadyproduced,butwealthyettobeproduced,whichistakenfromproducersintaxesastheworkprogresses;soitisthatthesubsistenceofthelaborersengagedinproductionwhichdoesnotdirectlyyieldsubsistencecomesfromtheproductionofsubsistenceinwhichothersaresimultaneouslyengaged.

Ifwetracethecircleofexchangebywhichworkdoneintheproductionofagreatsteamenginesecurestotheworkerbread,meat,clothesandshelter,weshallfindthatthoughbetweenthelaborerontheengineandtheproducersofthebread,meat,etc.,theremaybeathousandintermediateexchanges,thetransaction,whenreducedtoitslowestterms,reallyamountstoanexchangeoflaborbetweenhimandthem.Nowthecausewhichinducestheexpenditureofthelaborontheengineisevidentlythatsomeonewhohaspowertogivewhatisdesiredbythelaborerontheenginewantsinexchangeanengine—thatistosay,thereexistsademandforanengineonthepartofthoseproducingbread,meat,etc.,oronthepartofthosewhoareproducingwhattheproducersofthebread,meat,etc.,desire.Itisthisdemandwhichdirectsthelaborofthemachinisttotheproductionoftheengine,andhence,reversely,thedemandofthemachinistforbread,meat,etc.,reallydirectsanequivalentamountoflabortotheproductionofthesethings,andthushislabor,actuallyexertedintheproductionoftheengine,virtuallyproducesthethingsinwhichheexpendshiswages.

Or,toformularizethisprinciple:

Thedemandforconsumptiondeterminesthedirectioninwhichlaborwillbeexpendedinproduction.

Thisprincipleissosimpleandobviousthatitneedsnofurtherillustration,yetinitslightallthecomplexitiesofoursubjectdisappear,andwethusreachthesameviewoftherealobjectsandrewardsoflaborintheintricaciesofmodernproductionthatwegainedbyobservinginthefirstbeginningsofsocietythesimplerformsofproductionandexchange.Weseethatnow,asthen,eachlaborerisendeavoringtoobtainbyhisexertionsthesatisfactionofhisowndesires;weseethatalthoughtheminutedivisionoflaborassignstoeachproducertheproductionofbutasmallpart,orperhapsnothingatall,oftheparticularthingshelaborstoget,yet,inaidingintheproductionofwhatotherproducerswant,heisdirectingotherlabortotheproductionofthethingshewants—ineffect,producingthemhimself.Andthus,ifhemakejack-knivesandeatwheat,thewheatisreallyasmuchtheproduceofhislaborasifhehadgrownitforhimselfandleftwheat-growerstomaketheirownjack-knives.

Wethusseehowthoroughlyandcompletelytrueitis,thatinwhateveristakenorconsumedbylaborersinreturnforlaborrendered,thereisnoadvanceofcapitaltothelaborers.IfIhavemadejack-knives,andwiththewagesreceivedhaveboughtwheat,Ihavesimplyexchangedjack-knivesforwheat—addedjack-knivestotheexistingstockofwealthandtakenwheatfromit.Andasthedemandforconsumptiondeterminesthedirectioninwhichlaborwillbeexpendedinproduction,itcannotevenbesaid,solongasthelimitofwheatproductionhasnotbeenreached,thatIhavelessenedthestockofwheat,for,byplacingjack-knivesintheexchangeablestockofwealthandtakingwheatout,Ihavedeterminedlaborattheotherendofaseriesofexchangestotheproductionofwheat,justasthewheatgrower,byputtinginwheatanddemandingjack-knives,determinedlabortotheproductionofjack-knives,astheeasiestwaybywhichwheatcouldbeobtained.

Andsothemanwhoisfollowingtheplow—thoughthecropforwhichheisopeningthegroundisnotyetsown,andafterbeingsownwilltakemonthstoarriveatmaturity—heisyet,bytheexertionofhislaborinplowing,virtuallyproducingthefoodheeatsandthewageshereceives.For,thoughplowingisbutapartoftheoperationofproducingacrop,itisapart,andasnecessaryapartasharvesting.Thedoingofitisasteptowardprocuringacrop,which,bytheassurancewhichitgivesofthefuturecrop,setsfreefromthestockconstantlyheldthesubsistenceandwagesoftheplowman.Thisisnotmerelytheoreticallytrue,itispracticallyandliterallytrue.Atthepropertimeforplowing,letplowingcease.Wouldnotthesymptomsofscarcityatoncemanifestthemselveswithoutwaitingforthetimeoftheharvest?Letplowingcease,andwouldnottheeffectatoncebefeltincounting-room,andmachineshop,andfactory?Wouldnotloomandspindlesoonstandasidleastheplow?Thatthiswouldbeso,weseeintheeffectwhichimmediatelyfollowsabadseason.Andifthiswouldbeso,isnotthemanwhoplowsreallyproducinghissubsistenceandwagesasmuchasthoughduringthedayorweekhislaboractuallyresultedinthethingsforwhichhislaborisexchanged?

Asamatteroffact,wherethereislaborlookingforemployment,thewantofcapitaldoesnotpreventtheowneroflandwhichpromisesacropforwhichthereisademandfromhiringit.Eitherhemakesanagreementtocultivateonshares,acommonmethodinsomepartsoftheUnitedStates,inwhichcasethelaborers,iftheyarewithoutmeansofsubsistence,will,onthestrengthoftheworktheyaredoing,obtaincreditattheneareststore;or,ifhepreferstopaywages,thefarmerwillhimselfobtaincredit,andthustheworkdoneincultivationisimmediatelyutilizedorexchangedasitisdone.Ifanythingmorewillbeusedupthanwouldbeusedupifthelaborerswereforcedtobeginsteadoftowork(forinanycivilizedcountryduringanormalconditionofthingsthelaborersmustbesupportedanyhow),itwillbethereservecapitaldrawnoutbytheprospectofreplacement,andwhichisinfactreplacedbytheworkasitisdone.Forinstance,inthepurelyaagriculturaldistrictsof

SouthernCaliforniatherewasin1877atotalfailureofthecrop,andofmillionsofsheepnothingremainedbuttheirbones.InthegreatSanJoaquinValleyweremanyfarmerswithoutfoodenoughtosupporttheirfamiliesuntilthenextharvesttime,letalonetosupportanylaborers.Buttherainscameagaininproperseason,andtheseveryfarmersproceededtohirehandstoplowandtosow.Foreveryhereandtherewasafarmerwhohadbeenholdingbackpartofhiscrop.Assoonastherainscamehewasanxioustosellbeforethenextharvestbroughtlowerprices,andthegrainthusheldinreserve,throughthemachineryofexchangesandadvances,passedtotheuseofthecultivators—setfree,ineffectproduced,bytheworkdoneforthenextcrop.

Theseriesofexchangeswhichuniteproductionandconsumptionmaybelikenedtoacurvedpipefilledwithwater.Ifaquantityofwaterispouredinatoneend,alikequantityisreleasedattheother.Itisnotidenticallythesamewater,butisitsequivalent.Andsotheywhodotheworkofproductionputinastheytakeout—theyreceiveinsubsistenceandwagesbuttheproduceoftheirlabor.

PoliticalEconomyforBeginners,“byMillicentGarrettFawcett,Chap.111,P.25.

ThewordsquotedareRicardo’s(Chap.11);buttheideaiscommoninstandardworks.

[BacktoTableofContents]

ChapterVTheRealFunctionsofCapital

Itmaynowbeasked:Ifcapitalisnotrequiredforthepaymentofwagesorthesupportoflaborduringproduction,what,then,areitsfunctions?

Thepreviousexaminationhasmadetheanswerclear.Capital,aswehaveseen,consistsofwealthusedfortheprocurementofmorewealth,asdistinguishedfromwealthusedforthedirectsatisfactionofdesire;or,asIthinkitmaybedefined,ofwealthinthecourseofexchange.

Capital,therefore,increasesthepoweroflabortoproducewealth:(1)Byenablinglabortoapplyitselfinmoreeffectiveways,asbydiggingupclamswithaspadeinsteadofthehand,ormovingavesselbyshovelingcoalintoafurnace,insteadoftuggingatanoar.(2)Byenablinglabortoavailitselfofthereproductiveforcesofnature,astoobtaincornbysowingit,oranimalsbybreedingthem.(3)Bypermittingthedivisionoflabor,andthus,ontheonehand,increasingtheefficiencyofthehumanfactorofwealth,bytheutilizationofspecialcapabilities,theacquisitionofskill,andthereductionofwaste;and,ontheother,callinginthepowersofthenaturalfactorattheirhighest,bytakingadvantageofthediversitiesofsoil,climateandsituation,soastoobtaineachparticularspeciesofwealthwherenatureismostfavorabletoitsproduction.

Capitaldoesnotsupplythematerialswhichlaborworksupintowealth,asiserroneouslytaught;thematerialsofwealtharesuppliedbynature.Butsuchmaterialspartiallyworkedupandinthecourseofexchangearecapital.

Capitaldoesnotsupplyoradvancewages,asiserroneouslytaught.Wagesarethatpartoftheproduceofhislaborobtainedbythelaborer.

Capitaldoesnotmaintainlaborersduringtheprogressoftheirwork,asiserroneouslytaught.Laborersaremaintainedbytheirlabor,themanwhoproduces,inwholeorinpart,anythingthatwillexchangeforarticlesofmaintenance,virtuallyproducingthatmaintenance.

Capital,therefore,doesnotlimitindustry,asiserroneouslytaught,theonlylimittoindustrybeingtheaccesstonaturalmaterial.Butcapitalmaylimittheformofindustryandtheproductivenessofindustry,bylimitingtheuseoftoolsandthedivisionoflabor.

Thatcapitalmaylimittheformofindustryisclear.Withoutthefactory,therecouldbenofactoryoperatives;withoutthesewingmachine,nomachinesewing;withouttheplow,noplowman;andwithoutagreatcapitalengagedinexchange,industrycouldnottakethemanyspecialformswhichareconcernedwithexchanges.Itisalsoasclearthatthewantoftoolsmustgreatlylimittheproductivenessofindustry.Ifthefarmermustusethespadebecausehehasnotcapitalenoughforaplow,thesickleinsteadofthereapingmachine,theflailinsteadofthethresher;ifthemachinistmustrelyuponthechiselforcuttingiron;theweaveronthehandloom,andsoon,theproductivenessofindustrycannotbeatitheofwhatitiswhenaidedbycapitalintheshapeofthebesttoolsnowinuse.Norcouldthedivisionoflaborgofurtherthantheveryrudestandalmostimperceptiblebeginnings,northeexchangeswhichmakeitpossibleextendbeyondthenearestneighbors,unlessaportionofthethingsproducedwereconstantlykeptinstockorintransit.Eventhepursuitsofhunting,fishing,gatheringnuts,andmakingweaponscouldnotbespecializedsothatanindividualcoulddevotehimselftoanyone,unlesssomepartofwhatwasprocuredbyeachwasreservedfromimmediateconsumption,sothathewhodevotedhimselftotheprocurementofthingsofonekindcouldobtaintheothersashewantedthem,andcouldmakethegoodluckofonedaysupplytheshortcomingsofthenext.Whiletopermittheminutesubdivisionoflaborthatischaracteristicof,andnecessaryto,highcivilization,agreatamountofwealthofalldescriptionsmustbeconstantlykeptinstockorintransit.

Toenabletheresidentofacivilizedcommunitytoexchangehislaboratoptionwiththelaborofthosearoundhimandwiththelaborofmeninthemostremotepartsoftheglobe,theremustbestocksofgoodsinwarehouses,instores,intheholdsofships,andinrailwaycars,justastoenablethedenizenofagreatcitytodrawatwillacupfulofwater,theremustbethousandsofmillionsofgallonsstoredinreservoirsandmovingthroughmilesofpipe.

Buttosaythatcapitalmaylimittheformofindustryortheproductivenessofindustryisaverydifferentthingfromsayingthatcapitallimitsindustry.Forthedictumofthecurrentpoliticaleconomythat”capitallimitsindustry,“meansnotthatcapitallimitstheformoflaborortheproductivenessoflabor,butthatitlimitstheexertionoflabor.Thispropositionderivesitsplausibilityfromtheassumptionthatcapitalsupplieslaborwithmaterialsandmaintenance—anassumptionthatwehaveseentobeunfounded,andwhichisindeedtransparentlypreposterousthemomentitisrememberedthatcapitalisproducedbylabor,andhencethattheremustbelaborbeforetherecanbecapital.Capitalmaylimittheformofindustryandtheproductivenessofindustry;butthisisnottosaythattherecouldbenoindustrywithoutcapital,anymorethanitistosaythatwithoutthepowerloomtherecouldbenoweaving;withoutthesewingmachinenosewing;nocultivationwithouttheplow;orthatinacommunityofone,likethatofRobinsonCrusoe,therecouldbenolaborbecausetherecouldbenoexchange.

Andtosaythatcapitalmaylimittheformandproductivenessofindustryisadifferentthingfromsayingthatcapitaldoes.Forthecasesinwhichitcanbetrulysaidthattheformorproductivenessoftheindustryofacommunityislimitedbyitscapital,will,Ithink,appearuponexaminationtobemoretheoreticalthanreal.ItisevidentthatinsuchacountryasMexicoorTunisthelargerandmoregeneraluseofcapitalwouldgreatlychangetheformsofindustryandenormouslyincreaseitsproductiveness;anditisoftensaidofsuchcountriesthattheyneedcapitalforthedevelopmentoftheirresources.Butistherenotsomething

backofthis—awantwhichincludesthewantofcapital?Isitnottherapacityandabusesofgovernment,theinsecurityofproperty,theignoranceandprejudiceofthepeople,thatpreventtheaccumulationanduseofcapital?Isnotthereallimitationinthesethings,andnotinthewantofcapital,whichwouldnotbeusedevenifplacedthere?Wecan,ofcourse,imagineacommunityinwhichthewantofcapitalwouldbetheonlyobstacletoanincreasedproductivenessoflabor,butitisonlybyimaginingaconjunctionofconditionsthatseldom,ifever,occurs,exceptbyaccidentorasapassingphase.Acommunityinwhichcapitalhasbeensweptawaybywar,conflagration,orconvulsionofnature,and,possibly,acommunitycomposedofcivilizedpeoplejustsettledinanewland,seemtometofurnishtheonlyexamples.Yethowquicklythecapitalhabituallyusedisreproducedinacommunitythathasbeensweptbywar,haslongbeennoticed,whiletherapidproductionofthecapitalitcan,orisdisposedtouse,isequallynoticeableinthecaseofanewcommunity.

Iamunabletothinkofanyotherthansuchrareandpassingconditionsinwhichtheproductivenessoflaborisreallylimitedbythewantofcapital.For,althoughtheremaybeinacommunityindividualswhofromwantofcapitalcannotapplytheirlaborasefficientlyastheywould,yetsolongasthereisasufficiencyofcapitalinthecommunityatlarge,thereallimitationisnotthewantofcapital,butthewantofitsproperdistribution.Ifbadgovernmentrobthelaborerofhiscapital,ifunjustlawstakefromtheproducerthewealthwithwhichhewouldassistproduction,andhanditovertothosewhoaremerepensionersuponindustry,thereallimitationtotheeffectivenessoflaborisinmisgovernment,andnotinwantofcapital.Andsoofignorance,orcustom,orotherconditionswhichpreventtheuseofcapital.Itisthey,notthewantofcapital,thatreallyconstitutethelimitation.TogiveacircularsawtoaTerradelFuegan,alocomotivetoaBedouinArab,orasewingmachinetoaFlatheadsquaw,wouldnotbetoaddtotheefficiencyoftheirlabor.Neitherdoesitseempossiblebygivinganythingelsetoaddtotheircapital,foranywealthbeyondwhattheyhadbeenaccustomedtouseascapitalwouldbeconsumedorsufferedtowaste.It

isnotthewantofseedsandtoolsthatkeepstheApacheandtheSiouxfromcultivatingthesoil.Ifprovidedwithseedsandtoolstheywouldnotusethemproductivelyunlessatthesametimerestrainedfromwanderingandtaughttocultivatethesoil.IfallthecapitalofaLondonweregiventhemintheirpresentcondition,itwouldsimplyceasetobecapital,fortheywouldonlyuseproductivelysuchinfinitesimalpartasmightassistinthechase,andwouldnotevenusethatuntilalltheediblepartofthestockthusshowereduponthemhadbeenconsumed.Yetsuchcapitalastheydowanttheymanagetoacquire,andinsomeformsinspiteofthegreatestdifficulties.ThesewildtribeshuntandfightwiththebestweaponsthatAmericanandEnglishfactoriesproduce,keepingupwiththelatestimprovements.Itisonlyastheybecamecivilizedthattheywouldcareforsuchothercapitalasthecivilizedstaterequires,orthatitwouldbeofanyusetothem.

InthereignofGeorgeIV,somereturningmissionariestookwiththemtoEnglandaNewZealandchiefcalledHongi.Hisnobleappearanceandbeautifultattooingattractedmuchattention,andwhenabouttoreturntohispeoplehewaspresentedbythemonarchandsomeofthereligioussocietieswithaconsiderablestockoftools,agriculturalinstruments,andseeds.ThegratefulNewZealanderdidusethiscapitalintheproductionoffood,butitwasinamannerofwhichhisEnglishentertainerslittledreamed.InSydney,onhiswayback,heexchangeditallforarmsandammunition,withwhich,ongettinghome,hebeganwaragainstanothertribewithsuchsuccessthatonthefirstbattlefieldthreehundredofhisprisonerswerecookedandeaten,Hongihavingpreludedthemainrepastbyscoopingoutandswallowingtheeyesandsuckingthewarmbloodofhismortallywoundedadversary,theopposingchief.Butnowthattheironceconstantwarshaveceased,andtheremnantoftheMaorishavelargelyadoptedEuropeanhabits,thereareamongthemmanywhohaveanduseconsiderableamountsofcapital.

Likewiseitwouldbeamistaketoattributethesimplemodesofproductionandexchangewhichareresortedtoinnewcommunities

solelytoawantofcapital.Thesemodes,whichrequirelittlecapital,areinthemselvesrudeandinefficient,butwhentheconditionsofsuchcommunitiesareconsidered,theywillbefoundinrealitythemosteffective.Agreatfactorywithallthelatestimprovementsisthemostefficientinstrumentthathasyetbeendevisedforturningwoolorcottonintocloth,butonlysowherelargequantitiesaretobemade.Theclothrequiredforalittlevillagecouldbemadewithfarlesslaborbythespinningwheelandhandloom.Aperfectingpresswill,foreachmanrequired,printmanythousandimpressionswhileamanandaboywouldbeprintingahundredwithaStanhopeorFranklinpress;yettoworkoffthesmalleditionofacountrynewspapertheold-fashionedpressisbyfarthemostefficientmachine.Tocarryoccasionallytwoorthreepassengers,acanoeisabetterinstrumentthanasteamboat;afewsacksofflourcanbetransportedwithlessexpenditureoflaborbyapackhorsethanbyarailroadtrain;toputagreatstockofgoodsintoacross-roadsstoreinthebackwoodswouldbebuttowastecapital.And,generally,itwillbefoundthattherudedevicesofproductionandexchangewhichobtainamongthesparsepopulationsofnewcountriesresultnotsomuchfromthewantofcapitalasfrominabilityprofitablytoemployit.

As,nomatterhowmuchwaterispouredin,therecanneverbeinabucketmorethanabucketful,sonogreateramountofwealthwillbeusedascapitalthanisrequiredbythemachineryofproductionandexchangethatunderalltheexistingconditions—intelligence,habitsecurity,densityofpopulation,etc.—bestsuitthepeople.AndIaminclinedtothinkthatasageneralrulethisamountwillbehad—thatthesocialorganismsecretes,asitwere,thenecessaryamountofCapitaljustasthehumanorganisminahealthyconditionsecretestherequisitefat.

Butwhethertheamountofcapitaleverdoeslimittheproductivenessofindustry,andthusfixamaximumwhichwagescannotexceed,itisevidentthatitisnotfromanyscarcityofcapitalthatthepovertyofthemassesincivilizedcountriesproceeds.Fornotonlydowagesnowherereachthelimitfixedbytheproductivenessofindustry,butwagesare

relativelythelowestwherecapitalismostabundant.Thetoolsandmachineryofproductionareinallthemostprogressivecountriesevidentlyinexcessoftheusemadeofthem,andanyprospectofremunerativeemploymentbringsoutmorethanthecapitalneeded.Thebucketisnotonlyfull;itisoverflowing.Soevidentisthis,thatnotonlyamongtheignorant,butbymenofhigheconomicreputation,isindustrialdepressionattributedtotheabundanceofmachineryandtheaccumulationofcapital;andwar,whichisthedestructionofcapital,islookeduponasthecauseofbrisktradeandhighwages—anideastrangelyenough,sogreatistheconfusionofthoughtonsuchmatters,countenancedbymanywhoholdthatcapitalemployslaborandpayswages.

Ourpurposeinthisinquiryistosolvetheproblemtowhichsomanyself-contradictoryanswersaregiven.Inascertainingclearlywhatcapitalreallyisandwhatcapitalreallydoes,wehavemadethefirst,andanall-importantstep.Butitisonlyafirststep.Letusrecapitulateandproceed.

Wehaveseenthatthecurrenttheorythatwagesdependupontheratiobetweenthenumberoflaborersandtheamountofcapitaldevotedtotheemploymentoflaborisinconsistentwiththegeneralfactthatwagesandinterestdonotriseandfallinversely,butconjointly.

Thisdiscrepancyhavingledustoanexaminationofthegroundsofthetheory,wehaveseen,further,that,contrarytothecurrentidea,wagesarenotdrawnfromcapitalatall,butcomedirectlyfromtheproduceofthelaborforwhichtheyarepaid.Wehaveseenthatcapitaldoesnotadvancewagesorsubsistlaborers,butthatitsfunctionsaretoassistlaborinproductionwithtools,seed,etc.,andwiththewealthrequiredtocarryonexchanges.

Wearethusirresistiblyledtopracticalconclusionssoimportantasamplytojustifythepainstakentomakesureofthem.

Forifwagesaredrawn,notfromcapital,butfromtheproduceoflabor,thecurrenttheoriesastotherelationsofcapitalandlaborareinvalid,andallremedies,whetherproposedbyprofessorsofpoliticaleconomyorworkingmen,whichlooktothealleviationofpovertyeitherbytheincreaseofcapitalortherestrictionofthenumberoflaborersortheefficiencyoftheirwork,mustbecondemned.

Ifeachlaborerinperformingthelaborreallycreatesthefundfromwhichhiswagesaredrawn,thenwagescannotbediminishedbytheincreaseoflaborers,but,onthecontrary,astheefficiencyoflabormanifestlyincreaseswiththenumberoflaborers,themorelaborers,otherthingsbeingequal,thehighershouldwagesbe.

Butthisnecessaryproviso,“otherthingsbeingequal,”bringsustoaquestionwhichmustbeconsideredanddisposedofbeforewecanfurtherproceed.Thatquestionis:Dotheproductivepowersofnaturetendtodiminishwiththeincreasingdraftsmadeuponthembyincreasingpopulation?

NewZealandanditsInhabitants,”Rev.RichardTaylor.London,1855.Chap.XXI.

[BacktoTableofContents]

BookIIPopulationandSubsistence

ChapterI.TheMalthusianTheory,ItsGenesisandSupportChapterII.InferencesfromFactsChapterIII.InferencesfromAnalogyChapterIV.DisproofoftheMalthusianTheory

AreGodandNaturethenatstrifeThatNaturelendssuchevildreams?Socarefulofthetypesheseems,Socarelessofthesinglelife.

舒Tennyson.

[BacktoTableofContents]

ChapterITheMalthusianTheory,ItsGenesisandSupport

Behindthetheorywehavebeenconsideringliesatheorywehaveyettoconsider.Thecurrentdoctrineastothederivationandlawofwagesfindsitsstrongestsupportinadoctrineasgenerallyaccepted—thedoctrinetowhichMalthushasgivenhisname—thatpopulationnaturallytendstoincreasefasterthansubsistence.Thesetwodoctrines,fittinginwitheachother,frametheanswerwhichthecurrentpoliticaleconomygivestothegreatproblemweareendeavoringtosolve.

Inwhathaspreceded,thecurrentdoctrinethatwagesaredeterminedbytheratiobetweencapitalandlaborershas,Ithink,beenshowntobesoutterlybaselessastoexcitesurpriseastohowitcouldsogenerallyandsolongobtain.Itisnottobewonderedatthatsuchatheoryshouldhaveariseninastateofsocietywherethegreatbodyoflaborersseemtodependforemploymentandwagesuponaseparateclassofcapitalists,noryetthatundertheseconditionsitshouldhavemaintaineditselfamongthemassesofmen,whorarelytakethetroubletoseparatetherealfromtheapparent.Butitissurprisingthatatheorywhichonexaminationappearstobesogroundlesscouldhavebeensuccessivelyacceptedbysomanyacutethinkersashaveduringthepresentcenturydevotedtheirpowerstotheelucidationanddevelopmentofthescienceofpoliticaleconomy.

TheexplanationofthisotherwiseunaccountablefactistobefoundinthegeneralacceptanceoftheMalthusiantheory.Thecurrenttheoryofwageshasneverbeenfairlyputuponitstrial,because,backedbytheMalthusiantheory,ithasseemedinthemindsofpoliticaleconomistsaself-evidenttruth.Thesetwotheoriesmutuallyblendwith,strengthen,anddefendeachother,whiletheybothderiveadditionalsupportfromaprinciplebroughtprominentlyforwardinthediscussionsofthetheoryof

rent—viz.,thatpastacertainpointtheapplicationofcapitalandlabortolandyieldsadiminishingreturn.Togethertheygivesuchanexplanationofthephenomenapresentedinahighlyorganizedandadvancingsocietyasseemstofitallthefacts,andwhichhasthuspreventedcloserinvestigation.

Whichofthesetwotheoriesisentitledtohistoricalprecedenceitishardtosay.Thetheoryofpopulationwasnotformulatedinsuchawayastogiveitthestandingofascientificdogmauntilafterthathadbeendoneforthetheoryofwages.Buttheynaturallyspringupandgrowwitheachother,andwerebothheldinaformmoreorlesscrudelongpriortoanyattempttoconstructasystemofpoliticaleconomy.Itisevident,fromseveralpassages,thatthoughheneverfullydevelopedit,theMalthusiantheorywasinrudimentaryformpresentinthemindofAdamSmith,andtothis,itseemstome,mustbelargelyduethemisdirectionwhichonthesubjectofwageshisspeculationstook.But,howeverthismaybe,socloselyarethetwotheoriesconnected,socompletelydotheycomplementeachother,thatBuckle,reviewingthehistoryofthedevelopmentofpoliticaleconomyinhis“ExaminationoftheScotchIntellectduringtheEighteenthCentury,”attributesmainlytoMalthusthehonorof“decisivelyproving”thecurrenttheoryofwagesbyadvancingthecurrenttheoryofthepressureofpopulationuponsubsistence.Hesaysinhis“HistoryofCivilizationinEngland,”Vol.3,Chap.5:

“ScarcelyhadtheEighteenthCenturypassedawaywhenitwasdecisivelyprovedthattherewardoflabordependssolelyontwothings;namely,themagnitudeofthatnationalfundoutofwhichalllaborispaid,andthenumberoflaborersamongwhomthefundistobedivided.Thisvaststepinourknowledgeisdue,mainly,thoughnotentirely,toMalthus,whoseworkonpopulation,besidesmarkinganepochinthehistoryofspeculativethought,hasalreadyproducedconsiderablepracticalresults,andwillprobablygiverisetoothersmoreconsiderablestill.Itwaspublishedin1798;sothatAdamSmith,whodiedin1790,missedwhattohimwouldhavebeentheintensepleasureofseeinghow,init,hisown

viewswereexpandedratherthancorrected.Indeed,itiscertainthatwithoutSmiththerewouldhavebeennoMalthus;thatis,unlessSmithhadlaidthefoundation,Malthuscouldnothaveraisedthesuperstructure.”

Thefamousdoctrinewhicheversinceitsenunciationhassopowerfullyinfluencedthought,notaloneintheprovinceofpoliticaleconomy,butinregionsofevenhigherspeculation,wasformulatedbyMalthusinthepropositionthat,asshownbythegrowthoftheNorthAmericancolonies,thenaturaltendencyofpopulationistodoubleitselfatleasteverytwenty-fiveyears,thusincreasinginageometricalratio,whilethesubsistencethatcanbeobtainedfromland“undercircumstancesthemostfavorabletohumanindustrycouldnotpossiblybemadetoincreasefasterthaninanarithmeticalratio,orbyanadditioneverytwenty-fiveyearsofaquantityequaltowhatitatpresentproduces.”“Thenecessaryeffectsofthesetwodifferentratesofincrease,whenbroughttogether,”Mr.Malthusnaïvelygoesontosay,“willbeverystriking.”Andthus(Chap.I)hebringsthemtogether:

“Letuscallthepopulationofthisislandelevenmillions;andsupposethepresentproduceequaltotheeasysupportofsuchanumber.Inthefirsttwenty-fiveyearsthepopulationwouldbetwenty-twomillions,andthefoodbeingalsodoubled,themeansofsubsistencewouldbeequaltothisincrease.Inthenexttwenty-fiveyearsthepopulationwouldbeforty-fourmillions,andthemeansofsubsistenceonlyequaltothesupportofthirty-threemillions.Inthenextperiodthepopulationwouldbeequaltoeighty-eightmillions,andthemeansofsubsistencejustequaltothesupportofhalfthatnumber.Andattheconclusionofthefirstcentury,thepopulationwouldbeahundredandseventy-sixmillions,andthemeansofsubsistenceonlyequaltothesupportoffifty-fivemillions;leavingapopulationofahundredandtwenty-onemillionstotallyunprovidedfor.

”Takingthewholeearthinsteadofthisisland,emigrationwouldofcoursebeexcluded;andsupposingthepresentpopulationequaltoa

thousandmillions,thehumanspecieswouldincreaseasthenumbers1,2,4,8,16,32,64,128,256,andsubsistenceas1,2,3,4,5,6,7,8,9.Intwocenturiesthepopulationwouldbetothemeansofsubsistenceas256to9;inthreecenturies,4,096to13,andintwothousandyearsthedifferencewouldbealmostincalculable.“

Sucharesultisofcoursepreventedbythephysicalfactthatnomorepeoplecanexistthancanfindsubsistence,andhenceMalthus’conclusionis,thatthistendencyofpopulationtoindefiniteincreasemustbeheldbackeitherbymoralrestraintuponthereproductivefaculty,orbythevariouscauseswhichincreasemortality,whichheresolvesintoviceandmisery.Suchcausesaspreventpropagationhestylesthepreventivecheck;suchcausesasincreasemortalityhestylesthepositivecheck.ThisisthefamousMalthusiandoctrine,aspromulgatedbyMalthushimselfinthe”EssayonPopulation.“

Itisnotworthwhiletodwelluponthefallacyinvolvedintheassumptionofgeometricalandarithmeticalratesofincrease,aplayuponproportionswhichhardlyrisestothedignityofthatinthefamiliarpuzzleofthehareandthetortoise,inwhichthehareismadetochasethetortoisethroughalleternitywithoutcomingupwithhim.ForthisassumptionisnotnecessarytotheMalthusiandoctrine,oratleastisexpresslyrepudiatedbysomeofthosewhofullyacceptthatdoctrine;as,forinstance,JohnStuartMill,whospeaksofitas”anunluckyattempttogiveprecisiontothingswhichdonotadmitofit,whicheverypersoncapableofreasoningmustseeiswhollysuperfluoustotheargument.TheessenceoftheMalthusiandoctrineis,thatpopulationtendstoincreasefasterthanthepowerofprovidingfood,andwhetherthisdifferencebestatedasageometricalratioforpopulationandanarithmeticalratioforsubsistence,asbyMalthus;orasaconstantratioforpopulationandadiminishingratioforsubsistence,asbyMill,isonlyamatterofstatement.Thevitalpoint,onwhichbothagree,is,tousethewordsofMalthus,”thatthereisanaturaltendencyandconstanteffortinpopulationtoincreasebeyondthemeansofsubsistence.“

TheMalthusiandoctrine,asatpresentheld,maybethusstatedinitsstrongestandleastobjectionableform:

Thatpopulation,constantlytendingtoincrease,must,whenunrestrained,ultimatelypressagainstthelimitsofsubsistence,notasagainstafixed,butasagainstanelasticbarrier,whichmakestheprocurementofsubsistenceprogressivelymoreandmoredifficult.Andthus,whereverreproductionhashadtimetoassertitspower,andisuncheckedbyprudence,theremustexistthatdegreeofwantwhichwillkeeppopulationwithintheboundsofsubsistence.

Althoughinrealitynotmorerepugnanttothesenseofharmoniousadaptationbycreativebeneficenceandwisdomthanthecomplacentno-theorywhichthrowstheresponsibilityforpovertyanditsconcomitantsupontheinscrutabledecreesofProvidence,withoutattemptingtotracethem,thistheory,inavowedlymakingviceandsufferingthenecessaryresultsofanaturalinstinctwithwhicharelinkedthepurestandsweetestaffections,comesrudelyincollisionwithideasdeeplyrootedinthehumanmind,anditwas,assoonasformallypromulgated,foughtwithabitternessinwhichzealwasoftenmoremanifestthanlogic.Butithastriumphantlywithstoodtheordeal,andinspiteoftherefutationsoftheGodwins,thedenunciationsoftheCobbetts,andalltheshaftsthatargument,sarcasm,ridicule,andsentimentcoulddirectagainstit,to-dayitstandsintheworldofthoughtasanacceptedtruth,whichcompelstherecognitionevenofthosewhowouldfaindisbelieveit.

Thecausesofitstriumph,thesourcesofitsstrength,arenotobscure.Seeminglybackedbyanindisputablearithmeticaltruth—thatacontinuouslyincreasingpopulationmusteventuallyexceedthecapacityoftheearthtofurnishfoodorevenstandingroom,theMalthusiantheoryissupportedbyanalogiesintheanimalandvegetablekingdoms,wherelifeeverywherebeatswastefullyagainstthebarriersthatholditsdifferentspeciesincheck—analogiestowhichthecourseofmodernthought,inlevelingdistinctionsbetweendifferentformsoflife,hasgiven

agreaterandgreaterweight;anditisapparentlycorroboratedbymanyobviousfacts,suchastheprevalenceofpoverty,vice,andmiseryamiddensepopulations;thegeneraleffectofmaterialprogressinincreasingpopulationwithoutrelievingpauperism;therapidgrowthofnumbersinnewlysettledcountriesandtheevidentretardationofincreaseinmoredenselysettledcountriesbythemortalityamongtheclasscondemnedtowant.

TheMalthusiantheoryfurnishesageneralprinciplewhichaccountsfortheseandsimilarfacts,andaccountsfortheminawaywhichharmonizeswiththedoctrinethatwagesaredrawnfromcapital,andwithalltheprinciplesthatarededucedfromit.Accordingtothecurrentdoctrineofwages,wagesfallasincreaseinthenumberoflaborersnecessitatesamoreminutedivisionofcapital;accordingtotheMalthusiantheory,povertyappearsasincreaseinpopulationnecessitatesthemoreminutedivisionofsubsistence.Itrequiresbuttheidentificationofcapitalwithsubsistence,andnumberoflaborerswithpopulation,anidentificationmadeinthecurrenttreatisesonpoliticaleconomy,wherethetermsareoftenconverted,tomakethetwopropositionsasidenticalformallyastheyaresubstantially.Andthusitis,asstatedbyBuckleinthepassagepreviouslyquoted,thatthetheoryofpopulationadvancedbyMalthushasappearedtoprovedecisivelythetheoryofwagesadvancedbySmith.

Ricardo,whoafewyearssubsequenttothepublicationofthe”EssayonPopulation“correctedthemistakeintowhichSmithhadfallenastothenatureandcauseofrent,furnishedtheMalthusiantheoryanadditionalsupportbycallingattentiontothefactthatrentwouldincreaseasthenecessitiesofincreasingpopulationforcedcultivationtolessandlessproductivelands,ortolessandlessproductivepointsonthesamelands,thusexplainingtheriseofrent.Inthiswaywasformedatriplecombination,bywhichtheMalthusiantheoryhasbeenbuttressedonbothsides—thepreviouslyreceiveddoctrineofwagesandthesubsequentlyreceiveddoctrineofrentexhibitinginthisviewbutspecialexamplesoftheoperationofthegeneralprincipletowhichthenameofMalthushas

beenattached—thefallinwagesandtheriseinrentswhichcomewithincreasingpopulationbeingbutmodesinwhichthepressureofpopulationuponsubsistenceshowsitself.

Thustakingitsplaceintheveryframeworkofpoliticaleconomy(forthescienceascurrentlyacceptedhasundergonenomaterialchangeorimprovementsincethetimeofRicardo,thoughinsomeminorpointsithasbeenclearedandillustrated),theMalthusiantheory,thoughrepugnanttosentimentsbeforealludedto,isnotrepugnanttootherideaswhich,inoldercountriesatleast,generallyprevailamongtheworkingclasses;but,onthecontrary,likethetheoryofwagesbywhichitissupportedandinturnsupports,itharmonizeswiththem.Tothemechanicoroperativethecauseoflowwagesandoftheinabilitytogetemploymentisobviouslythecompetitioncausedbythepressureofnumbers,andinthesqualidabodesofpovertywhatseemsclearerthanthattherearetoomanypeople?

Butthegreatcauseofthetriumphofthistheoryis,that,insteadofmenacinganyvestedrightorantagonizinganypowerfulinterest,itiseminentlysoothingandreassuringtotheclasseswho,wieldingthepowerofwealth,largelydominatethought.Atatimewhenoldsupportswerefallingaway,itcametotherescueofthespecialprivilegesbywhichafewmonopolizesomuchofthegoodthingsofthisworld,proclaiminganaturalcauseforthewantandmiserywhich,ifattributedtopoliticalinstitutions,mustcondemneverygovernmentunderwhichtheyexist.The”EssayonPopulation“wasavowedlyareplytoWilliamGodwin’s”InquiryconcerningPoliticaljustice,“aworkassertingtheprincipleofhumanequality;anditspurposewastojustifyexistinginequalitybyshiftingtheresponsibilityforitfromhumaninstitutionstothelawsoftheCreator.Therewasnothingnewinthis,forWallace,nearlyfortyyearsbefore,hadbroughtforwardthedangerofexcessivemultiplicationastheanswertothedemandsofjusticeforanequaldistributionofwealth;butthecircumstancesofthetimesweresuchastomakethesameidea,whenbroughtforwardbyMalthus,peculiarlygratefultoapowerful

class,inwhomanintensefearofanyquestioningoftheexistingstateofthingshadbeengeneratedbytheoutburstoftheFrenchRevolution.

Now,asthen,theMalthusiandoctrineparriesthedemandforreform,andsheltersselfishnessfromquestionandfromconsciencebytheinterpositionofaninevitablenecessity.ItfurnishesaphilosophybywhichDivesashefeastscanshutouttheimageofLazaruswhofaintswithhungerathisdoor;bywhichwealthmaycomplacentlybuttonupitspocketwhenpovertyasksanalms,andtherichChristianbendonSundaysinanicelyupholsteredpewtoimplorethegoodgiftsoftheAllFatherwithoutanyfeelingofresponsibilityforthesqualidmiserythatisfesteringbutasquareaway.Forpoverty,want,andstarvationarebythistheorynotchargeableeithertoindividualgreedortosocialmaladjustments;theyaretheinevitableresultsofuniversallaws,withwhich,ifitwerenotimpious,itwereashopelesstoquarrelaswiththelawofgravitation.Inthisview,hewhointhemidstofwanthasaccumulatedwealth,hasbutfencedinalittleoasisfromthedrivingsandwhichelsewouldhaveoverwhelmedit.Hehasgainedforhimself,buthashurtnobody.AndeveniftherichwereliterallytoobeytheinjunctionsofChristanddividetheirwealthamongthepoor,nothingwouldbegained.Populationwouldbeincreased,onlytopressagainuponthelimitsofsubsistenceorcapital,andtheequalitythatwouldbeproducedwouldbebuttheequalityofcommonmisery.Andthusreformswhichwouldinterferewiththeinterestsofanypowerfulclassarediscouragedashopeless.Asthemorallawforbidsanyforestallingofthemethodsbywhichthenaturallawgetsridofsurpluspopulationandthusholdsincheckatendencytoincreasepotentenoughtopackthesurfaceoftheglobewithhumanbeingsassardinesarepackedinabox,nothingcanreallybedone,eitherbyindividualorbycombinedeffort,toextirpatepoverty,savetotrusttotheefficacyofeducationandpreachthenecessityofprudence.

Atheorythat,fallinginwiththehabitsofthoughtofthepoorerclasses,thusjustifiesthegreedoftherichandtheselfishnessofthepowerful,

willspreadquicklyandstrikeitsrootsdeep.ThishasbeenthecasewiththetheoryadvancedbyMalthus.

AndoflateyearstheMalthusiantheoryhasreceivednewsupportintherapidchangeofideasastotheoriginofmanandthegenesisofspecies.ThatBucklewasrightinsayingthatthepromulgationoftheMalthusiantheorymarkedanepochinthehistoryofspeculativethoughtcould,itseemstome,beeasilyshown;yettotraceitsinfluenceinthehigherdomainsofphilosophy,ofwhichBuckle’sownworkisanexample,would,thoughextremelyinteresting,carryusbeyondthescopeofthisinvestigation.Buthowmuchbereflexandhowmuchoriginal,thesupportwhichisgiventotheMalthusiantheorybythenewphilosophyofdevelopment,nowrapidlyspreadingineverydirection,mustbenotedinanyestimateofthesourcesfromwhichthistheoryderivesitspresentstrength.Asinpoliticaleconomy,thesupportreceivedfromthedoctrineofwagesandthedoctrineofrentcombinedtoraisetheMalthusiantheorytotherankofacentraltruth,sotheextensionofsimilarideastothedevelopmentoflifeinallitsformshastheeffectofgivingitastillhigherandmoreimpregnableposition.Agassiz,who,tothedayofhisdeath,wasastrenuousopponentofthenewphilosophy,spokeofDarwinismas”Malthusallover,“andDarwinhimselfsaysthestruggleforexistence”isthedoctrineofMalthusappliedwithmanifoldforcetothewholeanimalandvegetablekingdoms.

Itdoesnot,however,seemtomeexactlycorrecttosaythatthetheoryofdevelopmentbynaturalselectionorsurvivalofthefittestisextendedMalthusianism,forthedoctrineofMalthusdidnotoriginallyanddoesnotnecessarilyinvolvetheideaofprogression.Butthiswassoonaddedtoit.McCullochattributestothe”principleofincrease“socialimprovementandtheprogressofthearts,anddeclaresthatthepovertythatitengendersactsasapowerfulstimulustothedevelopmentofindustry,theextensionofscienceandtheaccumulationofwealthbytheupperandmiddleclasses,withoutwhichstimulussocietywouldquicklysinkintoapathyanddecay.Whatisthisbuttherecognitioninregardto

humansocietyofthedevelopingeffectsofthe”struggleforexistence“and”survivalofthefittest,“whichwearenowtoldontheauthorityofnaturalsciencehavebeenthemeanswhichNaturehasemployedtobringforthalltheinfinitelydiversifiedandwonderfullyadaptedformswhichtheteeminglifeoftheglobeassumes?Whatisitbuttherecognitionoftheforce,which,seeminglycruelandremorseless,hasyetinthecourseofunnumberedagesdevelopedthehigherfromthelowertype,differentiatedthemanandthemonkey,andmadetheNineteenthCenturysucceedtheageofstone?

Thuscommendedandseeminglyproved,thuslinkedandbuttressed,theMalthusiantheory—thedoctrinethatpovertyisduetothepressureofpopulationagainstsubsistence,or,toputitinitsotherform,thedoctrinethatthetendencytoincreaseinthenumberoflaborersmustalwaystendtoreducewagestotheminimumonwhichlaborerscanreproduce—isnowgenerallyacceptedasanunquestionabletruth,inthelightofwhichsocialphenomenaaretobeexplained,justasforagesthephenomenaofthesiderealheavenswereexplaineduponthesuppositionofthefixityoftheearth,orthefactsofgeologyuponthatoftheliteralinspirationoftheMosaicrecord.Ifauthoritywerealonetobeconsidered,formallytodenythisdoctrinewouldrequirealmostasmuchaudacityasthatofthecoloredpreacherwhorecentlystartedoutonacrusadeagainsttheopinionthattheearthmovesaroundthesun,forinoneformoranother,theMalthusiandoctrinehasreceivedintheintellectualworldanalmostuniversalindorsement,andinthebestasinthemostcommonliteratureofthedaymaybeseencroppingoutineverydirection.Itisindorsedbyeconomistsandbystatesmen,byhistoriansandbynaturalinvestigators;bysocialsciencecongressesandbytradeunions;bychurchmenandbymaterialists;byconservativesofthestrictestsectandbythemostradicalofradicals.ItisheldandhabituallyreasonedfrombymanywhoneverheardofMalthusandwhohavenottheslightestideaofwhathistheoryis.

Nevertheless,asthegroundsofthecurrenttheoryofwageshavevanished

whensubjectedtoacandidexamination,so,doIbelieve,willvanishthegroundsofthis,itstwin.InprovingthatwagesarenotdrawnfromcapitalwehaveraisedthisAntæusfromtheearth.

PrinciplesofPoliticalEconomy,“BookII,Chap.IX,Sec.VI.—YetnotwithstandingwhatMillsays,itisclearthatMalthushimselflaysgreatstressuponhisgeometricalandarithmeticalratios,anditisalsoprobablethatitistotheseratiosthatMalthusislargelyindebtedforhisfame,astheysuppliedoneofthosehigh-soundingformulasthatwithmanypeoplecarryfarmoreweightthantheclearestreasoning.

TheeffectoftheMalthusiandoctrineuponthedefinitionsofcapitalmay,Ithink,beseenbycomparing(seepp.33,34,35)thedefinitionofSmith,whowrotepriortoMalthus,withthedefinitionsofRicardo,McCullochandMill,whowrotesubsequently.

AddressbeforeMassachusettsStateBoardofAgriculture,1872.”ReportU.S.DepartmentofAgriculture,1873.“

OriginofSpecies,“Chap.III.

NoteIVto”WealthofNations.“

[BacktoTableofContents]

ChapterIIInferencesfromFacts

ThegeneralacceptanceoftheMalthusiantheoryandthehighauthoritybywhichitisindorsedhaveseemedtometomakeitexpedienttoreviewitsgroundsandthecauseswhichhaveconspiredtogiveitsuchadominatinginfluenceinthediscussionofsocialquestions.

Butwhenwesubjectthetheoryitselftothetestofstraightforwardanalysis,itwill,Ithink,befoundasutterlyuntenableasthecurrenttheoryofwages.

Inthefirstplace,thefactswhicharemarshaledinsupportofthistheorydonotproveit,andtheanalogiesdonotcountenanceit.

Andinthesecondplace,therearefactswhichconclusivelydisproveit.

Igototheheartofthematterinsayingthatthereisnowarrant,eitherinexperienceoranalogy,fortheassumptionthatthereisanytendencyinpopulationtoincreasefasterthansubsistence.Thefactscitedtoshowthissimplyshowthatwhere,owingtothesparsenessofpopulation,asinnewcountries,orwhere,owingtotheunequaldistributionofwealth,asamongthepoorerclassesinoldcountries,humanlifeisoccupiedwiththephysicalnecessitiesofexistence,thetendencytoreproduceisataratewhichwould,wereittogoonunchecked,sometimeexceedsubsistence.Butitisnotalegitimateinferencefromthisthatthetendencytoreproducewouldshowitselfinthesameforcewherepopulationwassufficientlydenseandwealthdistributedwithsufficientevennesstoliftawholecommunityabovethenecessityofdevotingtheirenergiestoastruggleformereexistence.Norcanitbeassumedthatthetendencytoreproduce,bycausingpoverty,mustpreventtheexistenceofsuchacommunity;forthis,manifestly,wouldbeassumingtheverypoint

atissue,andreasoninginacircle.Andevenifitbeadmittedthatthetendencytomultiplymustultimatelyproducepoverty,itcannotfromthisalonebepredicatedofexistingpovertythatitisduetothiscause,untilitbeshownthattherearenoothercauseswhichcanaccountforit—athinginthepresentstateofgovernment,laws,andcustoms,manifestlyimpossible.

Thisisabundantlyshowninthe”EssayonPopulation“itself.Thisfamousbook,whichismuchoftenerspokenofthanread,isstillwellworthperusal,ifonlyasaliterarycuriosity.Thecontrastbetweenthemeritsofthebookitselfandtheeffectithasproduced,orisatleastcreditedwith(forthoughSirJamesStewart,Mr.Townsend,andothers,sharewithMalthusthegloryofdiscovering”theprincipleofpopulation,“itwasthepublicationofthe”EssayonPopulation“thatbroughtitprominentlyforward),is,itseemstome,oneofthemostremarkablethingsinthehistoryofliterature;anditiseasytounderstandhowGodwin,whose”Politicaljustice“provokedthe”EssayonPopulation,“shoulduntilhisoldagehavedisdainedareply.Itbeginswiththeassumptionthatpopulationtendstoincreaseinageometricalratio,whilesubsistencecanatbestbemadetoincreaseonlyinanarithmeticalratio—anassumptionjustasvalid,andnomoreso,thanitwouldbe,fromthefactthatapuppydoubledthelengthofhistailwhileheaddedsomanypoundstohisweight,toassertageometricprogressionoftailandanarithmeticalprogressionofweight.And,theinferencefromtheassumptionisjustsuchasSwiftinsatiremighthavecreditedtothesavantsofapreviouslydoglessisland,who,bybringingthesetworatiostogether,mightdeducethevery”strikingconsequence“thatbythetimethedoggrewtoaweightoffiftypoundshistailwouldbeoveramilelong,andextremelydifficulttowag,andhencerecommendtheprudentialcheckofabandageastheonlyalternativetothepositivecheckofconstantamputations.Commencingwithsuchanabsurdity,theessayincludesalongargumentfortheimpositionofadutyontheimportation,andthepaymentofabountyfortheexportationofcorn,anideathathaslongsincebeensenttothelimboofexplodedfallacies.Anditismarked

throughouttheargumentativeportionsbypassageswhichshowonthepartofthereverendgentlemanthemostridiculousincapacityforlogicalthought—as,forinstance,thatifwagesweretobeincreasedfromeighteenpenceortwoshillingsperdaytofiveshillings,meatwouldnecessarilyincreaseinpricefromeightorninepencetotwoorthreeshillingsperpound,andtheconditionofthelaboringclasseswouldthereforenotbeimproved,astatementtowhichIcanthinkofnoparallelsocloseasapropositionIoncebeardacertainprintergravelyadvance—thatbecauseanauthor,whomhehadknown,wasfortyyearsoldwhenhewastwenty,theauthormustnowbeeightyyearsoldbecausehe(theprinter)wasforty.Thisconfusionofthoughtdoesnotmerelycropouthereandthere;itcharacterizesthewholework.Themainbodyofthebookistakenupwithwhatisinrealityarefutationofthetheorywhichthebookadvances,forMalthus’reviewofwhathecallsthepositivecheckstopopulationissimplytheshowingthattheresultswhichheattributestoover-populationactuallyarisefromothercauses.Ofallthecasescited,andprettymuchthewholeglobeispassedoverinthesurvey,inwhichviceandmiserycheckincreasebylimitingmarriagesorshorteningthetermofhumanlife,thereisnotasinglecaseinwhichtheviceandmiserycanbetracedtoanactualincreaseinthenumberofmouthsoverthepoweroftheaccompanyinghandstofeedthem;butineverycasetheviceandmiseryareshowntospringeitherfromunsocialignoranceandrapacity,orfrombadgovernment,unjustlawsordestructivewarfare.

NorwhatMalthusfailedtoshowhasanyonesincehimshown.Theglobemaybesurveyedandhistorymaybereviewedinvainforanyinstanceofaconsiderablecountryinwhichpovertyandwantcanbefairlyattributedtothepressureofanincreasingpopulation.Whateverbethepossibledangersinvolvedinthepowerofhumanincrease,theyhaveneveryetappeared.Whatevermaysometimebe,thisneveryethasbeentheevilthathasafflictedmankind.Populationalwaystendingtooverpassthelimitofsubsistence!Howisit,then,thatthisglobeofours,afterallthethousands,anditisnowthoughtmillions,ofyearsthatmanhasbeen

upontheearth,isyetsothinlypopulated?Howisit,then,thatsomanyofthehivesofhumanlifearenowdeserted—thatoncecultivatedfieldsarerankwithjungle,andthewildbeastlickshercubswhereoncewerebusyhauntsofmen?

Itisafact,that,aswecountourincreasingmillions,weareapttolosesightof—neverthelessitisafactthatinwhatweknowoftheworld’shistorydecadenceofpopulationisascommonasincrease.Whethertheaggregatepopulationoftheearthisnowgreaterthanatanypreviousepochisaspeculationwhichcandealonlywithguesses.SinceMontesquieu,intheearlypartofthelastcentury,asserted,whatwasthenprobablytheprevailingimpression,thatthepopulationoftheearthhad,sincetheChristianera,greatlydeclined,opinionhasruntheotherway.Butthetendencyofrecentinvestigationandexplorationhasbeentogivegreatercredittowhathavebeendeemedtheexaggeratedaccountsofancienthistoriansandtravelers,andtorevealindicationsofdenserpopulationsandmoreadvancedcivilizationsthanhadbeforebeensuspected,aswellasofahigherantiquityinthehumanrace.Andinbasingourestimatesofpopulationuponthedevelopmentoftrade,theadvanceofthearts,andthesizeofcities,weareapttounderratethedensityofpopulationwhichtheintensivecultivations,characteristicoftheearliercivilizations,arecapableofmaintaining—especiallywhereirrigationisresortedto.AswemayseefromthecloselycultivateddistrictsofChinaandEuropeaverygreatpopulationofsimplehabitscanreadilyexistwithverylittlecommerceandamuchlowerstageofthoseartsinwhichmodernprogresshasbeenmostmarked,andwithoutthattendencytoconcentrateincitieswhichmodernpopulationsshow.

Bethisasitmay,theonlycontinentwhichwecanbesurenowcontainsalargerpopulationthaneverbeforeisEurope.ButthisisnottrueofallpartsofEurope.CertainlyGreece,theMediterraneanIslands,andTurkeyinEurope,probablyItaly,andpossiblySpain,havecontainedlargerpopulationsthannow,andthismaybelikewisetrueofNorthwesternandpartsofCentralandEasternEurope.

Americaalsohasincreasedinpopulationduringthetimeweknowofit;butthisincreaseisnotsogreatasispopularlysupposed,someestimatesgivingtoPerualoneatthetimeofthediscoveryagreaterpopulationthannowexistsonthewholecontinentofSouthAmerica.AndalltheindicationsarethatprevioustothediscoverythepopulationofAmericahadbeendeclining.Whatgreatnationshaveruntheircourse,whatempireshavearisenandfallenin”thatnewworldwhichistheold,“wecanonlyimagine.Butfragmentsofmassiveruinsyetattestagranderpre-Incancivilization;amidthetropicalforestsofYucatanandCentralAmericaaretheremainsofgreatcitiesforgotteneretheSpanishconquest;Mexico,asCortezfoundit,showedthesuperimpositionofbarbarismuponahighersocialdevelopment,whilethroughagreatpartofwhatisnowtheUnitedStatesarescatteredmoundswhichproveaoncerelativelydensepopulation,andhereandthere,asintheLakeSuperiorcoppermines,aretracesofhigherartsthanwereknowntotheIndianswithwhomthewhitescameincontact.

AstoAfricatherecanbenoquestion.NorthernAfricacancontainbutafractionofthepopulationthatithadinancienttimes;theNileValleyonceheldanenormouslygreaterpopulationthannow,whilesouthoftheSaharathereisnothingtoshowincreasewithinhistorictimes,andwidespreaddepopulationwascertainlycausedbytheslavetrade.

AsforAsia,whichevennowcontainsmorethanhalfthehumanrace,thoughitisnotmuchmorethanhalfasdenselypopulatedasEurope,thereareindicationsthatbothIndiaandChinaoncecontainedlargerpopulationsthannow,whilethatgreatbreedinggroundofmenfromwhichissuedswarmsthatoverranbothcountriesandsentgreatwavesofpeoplerollinguponEurope,musthavebeenoncefarmorepopulous.ButthemostmarkedchangeisinAsiaMinor,Syria,Babylonia,Persia,andinshortthatvastdistrictwhichyieldedtotheconqueringarmsofAlexander.Wherewereoncegreatcitiesandteemingpopulationsarenowsqualidvillagesandbarrenwastes.

Itissomewhatstrangethatamongallthetheoriesthathavebeenraised,thatofafixedquantitytohumanlifeonthisearthhasnotbeenbroached.Itwouldatleastbetteraccordwithhistoricalfactsthanthatoftheconstanttendencyofpopulationtooutrunsubsistence.Itisclearthatpopulationhashereebbedandthereflowed;itscentershavechanged;newnationshavearisenandoldnationsdeclined;sparselysettleddistrictshavebecomepopulousandpopulousdistrictshavelosttheirpopulation;butasfarbackaswecangowithoutabandoningourselveswhollytoinference,thereisnothingtoshowcontinuousincrease,orevenclearlytoshowanaggregateincreasefromtimetotime.Theadvanceofthepioneersofpeopleshas,sofaraswecandiscern,neverbeenintouninhabitedlands—theirmarchhasalwaysbeenabattlewithsomeotherpeoplepreviouslyinpossession;behinddimempiresvaguerghostsofempireloom.Thatthepopulationoftheworldmusthavehaditssmallbeginningsweconfidentlyinferforweknowthattherewasageologicerawhenhumanlifecouldnothaveexisted,andwecannotbelievethatmensprangupallatonce,asfromthedragonteethsowedbyCadmus;yetthroughlongvistas,wherehistory,traditionandantiquitiesshedalightthatislostinfaintglimmers,wemaydiscernlargepopulations.Andduringtheselongperiodstheprincipleofpopulationhasnotbeenstrongenoughfullytosettletheworld,orevensofaraswecanclearlyseemateriallytoincreaseitsaggregatepopulation.Comparedwithitscapacitiestosupporthumanlifetheearthasawholeisyetmostsparselypopulated.

Thereisanotherbroad,generalfactwhichcannotfailtostrikeanyonewho,thinkingofthissubject,extendshisviewbeyondmodernsociety.Malthusianismpredicatesauniversallaw—thatthenaturaltendencyofpopulationistooutrunsubsistence.Iftherebesuchalaw,itmust,whereverpopulationhasattainedacertaindensity,becomeasobviousasanyofthegreatnaturallawswhichhavebeeneverywhererecognized.Howisit,then,thatneitherinclassicalcreedsandcodes,norinthoseoftheJews,theEgyptians,theHindoos,theChinese,noranyofthepeopleswhohavelivedincloseassociationandhavebuiltupcreedsandcodes,

dowefindanyinjunctionstothepracticeoftheprudentialrestraintsofMalthus;butthat,onthecontrary,thewisdomofthecenturies,thereligionsoftheworld,havealwaysinculcatedideasofcivicandreligiousdutytheveryreverseofthosewhichthecurrentpoliticaleconomyenjoins,andwhichAnnieBesantisnowtryingtopopularizeinEngland?

Anditmustberememberedthattherehavebeensocietiesinwhichthecommunityguaranteedtoeverymemberemploymentandsubsistence.JohnStuartMillsays(BookII,ChapXII,Sec.2),thattodothiswithoutstateregulationofmarriagesandbirths,wouldbetoproduceastateofgeneralmiseryanddegradation.”Theseconsequences,“hesays,”havebeensooftenandsoclearlypointedoutbyauthorsofreputationthatignoranceofthemonthepartofeducatedpersonsisnolongerpardonable.“YetinSparta,inPeru,inParaguay,asintheindustrialcommunitieswhichappearalmosteverywheretohaveconstitutedtheprimitiveagriculturalorganization,thereseemstohavebeenanutterignoranceofthesedireconsequencesofanaturaltendency.

Besidesthebroad,generalfactsIhavecited,therearefactsofcommonknowledgewhichseemutterlyinconsistentwithsuchanoverpoweringtendencytomultiplication.IfthetendencytoreproducebesostrongasMalthusianismsupposes,howisitthatfamiliessooftenbecomeextinct—familiesinwhichwantisunknown?Howisit,then,thatwheneverypremiumisofferedbyhereditarytitlesandhereditarypossessions,notalonetotheprincipleofincrease,buttothepreservationofgenealogicalknowledgeandtheprovingupofdescent,thatinsuchanaristocracyasthatofEngland,somanypeeragesshouldlapse,andtheHouseofLordsbekeptupfromcenturytocenturyonlybyfreshcreations?

Forthesolitaryexampleofafamilythathassurvivedanygreatlapseoftime,eventhoughassuredofsubsistenceandhonorwemustgotounchangeableChina.ThedescendantsofConfuciusstillexistthere,andenjoypeculiarprivilegesandconsideration,forming,infact,theonlyhereditaryaristocracy.Onthepresumptionthatpopulationtendsto

doubleeverytwenty-fiveyears,theyshould,in2,150yearsafterthedeathofConfucius,haveamountedto859,559,193,106,709,670,198,710,528souls.Insteadofanysuchunimaginablenumber,thedescendantsofConfucius,2,150yearsafterhisdeath,inthereignofKanghinumbered11,000males,orsay22,000souls.Thisisquiteadiscrepancy,andisthemorestrikingwhenitisrememberedthattheesteeminwhichthisfamilyisheldonaccountoftheirancestor,”theMostHolyAncientTeacher,“haspreventedtheoperationofthepositivecheck,whilethemaximsofConfuciusinculcateanythingbuttheprudentialcheck.

Yet,itmaybesaid,thateventhisincreaseisagreatone.Twenty-twothousandpersonsdescendedfromasinglepairin2,150yearsisfarshortoftheMalthusianrate.Nevertheless,itissuggestiveofpossibleovercrowding.

Butconsider.Increaseofdescendantsdoesnotshowincreaseofpopulation.Itcouldonlydothiswhenthebreedingwasinandin.Smithandhiswifehaveasonanddaughter,whomarryrespectivelysomeoneelse’sdaughterandson,andeachhavetwochildren.Smithandhiswifewouldthushavefourgrandchildren;buttherewouldbeintheonegenerationnogreaternumberthanintheother—eachchildwouldhavefourgrandparents.Andsupposingthisprocessweretogoon,thelineofdescentmightconstantlyspreadoutintohundreds,thousandsandmillions;butineachgenerationofdescendantstherewouldbenomoreindividualsthaninanypreviousgenerationofancestors.Thewebofgenerationsislikelattice-workorthediagonalthreadsincloth.Commencingatanypointatthetop,theeyefollowslineswhichatthebottomwidelydiverge;butbeginningatanypointatthebottom,thelinesdivergeinthesamewaytothetop.Howmanychildrenamanmayhaveisproblematical.Butthathehadtwoparentsiscertain,andthattheseagainhadtwoparentseachisalsocertain.Followthisgeometricalprogressionthroughafewgenerationsandseeifitdoesnotleadtoquiteas”strikingconsequences“asMr.Malthus’peoplingofthesolarsystems.

Butfromsuchconsiderationsastheseletusadvancetoamoredefiniteinquiry.Iassertthatthecasescommonlycitedasinstancesofover-populationwillnotbearinvestigation.India,China,andIrelandfurnishthestrongestofthesecases.Ineachofthesecountries,largenumbershaveperishedbystarvationandlargeclassesarereducedtoabjectmiseryorcompelledtoemigrate.Butisthisreallyduetoover-population?

Comparingtotalpopulationwithtotalarea,IndiaandChinaarefarfrombeingthemostdenselypopulatedcountriesoftheworld.AccordingtotheestimatesofMM.BehmandWagner,thepopulationofIndiaisbut132tothesquaremileandthatofChina119whereasSaxonyhasapopulationOf442tothesquaremile;Belgium441;England442;theNetherlands291;Italy234andJapan233.Therearethusinbothcountrieslargeareasunusedornotfullyused,butevenintheirmoredenselypopulateddistrictstherecanbenodoubtthateithercouldmaintainamuchgreaterpopulationinamuchhigherdegreeofcomfort,forinbothcountriesislaborappliedtoproductionintherudestandmostinefficientways,andinbothcountriesgreatnaturalresourcesarewhollyneglected.Thisarisesfromnoinnatedeficiencyinthepeople,fortheHindoo,ascomparativephilologyhasshown,isofourownblood,andChinapossessedahighdegreeofcivilizationandtherudimentsofthemostimportantmoderninventionswhenourancestorswerewanderingsavages.Itarisesfromtheformwhichthesocialorganizationhasinbothcountriestaken,whichhasshackledproductivepowerandrobbedindustryofitsreward.

InIndiafromtimeimmemorial,theworkingclasseshavebeengrounddownbyexactionsandoppressionsintoaconditionofhelplessandhopelessdegradation.Foragesandagesthecultivatorofthesoilhasesteemedhimselfhappyif,ofhisproduce,theextortionofthestronghandlefthimenoughtosupportlifeandfurnishseed;capitalcouldnowherebesafelyaccumulatedortoanyconsiderableextentbeusedtoassistproduction;allwealththatcouldbewrungfromthepeoplewasinthepossessionofprinceswhowerelittlebetterthanrobberchiefsquarteredonthecountry,orinthatoftheirfarmersorfavorites,andwas

wastedinuselessorworsethanuselessluxury,whilereligion,sunkenintoanelaborateandterriblesuperstition,tyrannizedoverthemindasphysicalforcedidoverthebodiesofmen.Undertheseconditions,theonlyartsthatcouldadvancewerethosethatministeredtotheostentationandluxuryofthegreat.Theelephantsoftherajahblazedwithgoldofexquisiteworkmanship,andtheumbrellasthatsymbolizedhisregalpowerglitteredwithgems;buttheplowoftheryotwasonlyasharpenedstick.Theladiesoftherajah’sharemwrappedthemselvesinmuslinssofineastotakethenameofwovenwind,butthetoolsoftheartisanwereofthepoorestandrudestdescriptionandcommercecouldonlybecarriedon,asitwere,bystealth.

IsitnotclearthatthistyrannyandinsecurityhaveproducedthewantandstarvationofIndia;andnot,asaccordingtoBuckle,thepressureofpopulationuponsubsistencethathasproducedthewant,andthewantthetyranny.SaystheRev.WilliamTennant,achaplainintheserviceoftheEastIndiaCompany,writingin1796,twoyearsbeforethepublicationofthe“EssayonPopulation”:

“WhenwereflectuponthegreatfertilityofHindostan,itisamazingtoconsiderthefrequencyoffamine.Itisevidentlynotowingtoanysterilityofsoilorclimate;theevilmustbetracedtosomepoliticalcause,anditrequiresbutlittlepenetrationtodiscoveritintheavariceandextortionofthevariousgovernments.Thegreatspurtoindustry,thatofsecurity,istakenaway.Hencenomanraisesmoregrainthanisbarelysufficientforhimself,andthefirstunfavorableseasonproducesafamine.

”TheMogulgovernmentatnoperiodofferedfullsecuritytotheprince,stilllesstohisvassals;andtopeasantsthemostscantyprotectionofall.Itwasacontinuedtissueofviolenceandinsurrection,treacheryandpunishment,underwhichneithercommercenortheartscouldprosper,noragricultureassumetheappearanceofasystem.Itsdownfallgaverisetoastatestillmoreafflictive,sinceanarchyisworsethanmisrule.TheMohammedangovernment,wretchedasitwas,theEuropeannationshave

notthemeritofoverturning.Itfellbeneaththeweightofitsowncorruption,andhadalreadybeensucceededbythemultifarioustyrannyofpettychiefs,whoserighttogovernconsistedintheirtreasontothestate,andwhoseexactionsonthepeasantswereasboundlessastheiravarice.Therentstogovernmentwere,and,wherenativesrule,stillare,leviedtwiceayearbyamercilessbanditti,underthesemblanceofanarmy,whowantonlydestroyorcarryoffwhateverpartoftheproducemaysatisfytheircapriceorsatiatetheiravidity,afterhavinghuntedtheill-fatedpeasantsfromthevillagestothewoods.Anyattemptofthepeasantstodefendtheirpersonsorpropertywithinthemudwallsoftheirvillagesonlycallsforthemoresignalvengeanceonthoseuseful,butill-fatedmortals.Theyarethensurroundedandattackedwithmusketryandfieldpiecestillresistanceceases,whenthesurvivorsaresold,andtheirhabitationsburnedandleveledwiththeground.Henceyouwillfrequentlymeetwiththeryotsgatheringupthescatteredremnantsofwhathadyesterdaybeentheirhabitation,iffearhaspermittedthemtoreturn;butoftenertheruinsareseensmoking,afterasecondvisitationofthiskind,withouttheappearanceofahumanbeingtointerrupttheawfulsilenceofdestruction.ThisdescriptiondoesnotapplytotheMohammedanchieftainsalone;itisequallyapplicabletotheRajahsinthedistrictsgovernedbyHindoos.

Tothismercilessrapacity,whichwouldhaveproducedwantandfaminewerethepopulationbutonetoasquaremileandthelandaGardenofEden,succeeded,inthefirsteraofBritishruleinIndia,asmercilessarapacity,backedbyafarmoreirresistiblepower.SaysMacaulay,inhisessayonLordClive:

”EnormousfortuneswererapidlyaccumulatedatCalcutta,whilemillionsofhumanbeingswerereducedtotheextremityofwretchedness.Theyhadbeenaccustomedtoliveundertyranny,butneverundertyrannylikethis.TheyfoundthelittlefingeroftheCompanythickerthantheloinsofSurajahDowlah舰.Itresembledthegovernmentofevilgenii,ratherthanthegovernmentofhumantyrants.Sometimestheysubmittedinpatient

misery.SometimestheyfledfromthewhitemanastheirfathershadbeenusedtoflyfromtheMaharatta,andthepalanquinoftheEnglishtravelerwasoftencarriedthroughsilentvillagesandtownsthatthereportofhisapproachhadmadedesolate.“

UponhorrorsthatMacaulaythusbuttouches,thevivideloquenceofBurkethrowsastrongerlight—wholedistrictssurrenderedtotheunrestrainedcupidityoftheworstofhumankind,poverty-strickenpeasantsfiendishlytorturedtocompelthemtogiveuptheirlittlehoards,andoncepopuloustractsturnedintodeserts.

ButthelawlesslicenseofearlyEnglishrulehasbeenlongrestrained.ToallthatvastpopulationthestrongbandofEnglandhasgivenamorethanRomanpeace;thejustprinciplesofEnglishlawhavebeenextendedbyanelaboratesystemofcodesandlawofficersdesignedtosecuretothehumblestoftheseabjectpeoplestherightsofAnglo-Saxonfreemen;thewholepeninsulahasbeenintersectedbyrailways,andgreatirrigationworkshavebeenconstructed.Yet,withincreasingfrequency,faminehassucceededfamine,ragingwithgreaterintensityoverwiderareas.

IsnotthisademonstrationoftheMalthusiantheory?Doesitnotshowthatnomatterhowmuchthepossibilitiesofsubsistenceareincreased,populationstillcontinuestopressuponit?Doesitnotshow,asMalthuscontended,that,toshutupthesluicesbywhichsuperabundantpopulationiscarriedoff,isbuttocompelnaturetoopennewones,andthatunlessthesourcesofhumanincreasearecheckedbyprudentialregulation,thealternativeofwarisfamine?Thishasbeentheorthodoxexplanation.Butthetruth,asmaybeseeninthefactsbroughtforthinrecentdiscussionsofIndianaffairsintheEnglishperiodicals,isthatthesefamines,whichhavebeen,andarenow,sweepingawaytheirmillions,arenomoreduetothepressureofpopulationuponthenaturallimitsofsubsistencethanwasthedesolationoftheCarnaticwhenHyderAli’shorsemenburstuponitinawhirlwindofdestruction.

ThemillionsofIndiahavebowedtheirnecksbeneaththeyokesofmanyconquerors,butworstofallisthesteady,grindingweightofEnglishdomination—aweightwhichisliterallycrushingmillionsoutofexistence,and,asshownbyEnglishwriters,isinevitablytendingtoamostfrightfulandwidespreadcatastrophe.Otherconquerorshavelivedintheland,and,thoughbadandtyrannousintheirrule,haveunderstoodandbeenunderstoodbythepeople;butIndianowislikeagreatestateownedbyanabsenteeandalienlandlord.Amostexpensivemilitaryandcivilestablishmentiskeptup,managedandofficeredbyEnglishmenwhoregardIndiaasbutaplaceoftemporaryexile;andanenormoussum,estimatedasatleast£20,000,000annually,raisedfromapopulationwherelaborersareinmanyplacesgladingoodtimestoworkfor1½d.to4d.aday,isdrainedawaytoEnglandintheshapeofremittances,pensions,homechargesofthegovernment,etc.—atributeforwhichthereisnoreturn.Theimmensesumslavishedonrailroadshave,asshownbythereturns,beeneconomicallyunproductive;thegreatirrigationworksareforthemostpartcostlyfailures.InlargepartsofIndiatheEnglish,intheirdesiretocreateaclassoflandedproprietors,turnedoverthesoilinabsolutepossessiontohereditarytax-gatherers,whorack-rentthecultivatorsmostmercilessly.Inotherparts,wheretherentisstilltakenbytheStateintheshapeofalandtax,assessmentsaresohigh,andtaxesarecollectedsorelentlessly,astodrivetheryots,whogetbutthemostscantylivingingoodseasons,intotheclawsofmoneylenders,whoare,ifpossible,evenmorerapaciousthanthezemindars.Uponsalt,anarticleofprimenecessityeverywhere,andofespecialnecessitywherefoodisalmostexclusivelyvegetable,ataxofnearlytwelvehundredpercent.isimposed,sothatitsvariousindustrialusesareprohibited,andlargebodiesofthepeoplecannotgetenoughtokeepeitherthemselvesortheircattleinhealth.BelowtheEnglishofficialsareahordeofnativeemployeeswhooppressandextort.TheeffectofEnglishlaw,withitsrigidrules,and,tothenative,mysteriousproceedings,hasbeenbuttoputapotentinstrumentofplunderintothehandsofthenativemoneylenders,fromwhomthepeasantsarecompelledtoborrowonthemostextravaganttermstomeettheirtaxes,

andtowhomtheyareeasilyinducedtogiveobligationsofwhichtheyknownotthemeaning.”WedonotcareforthepeopleofIndia,“writesFlorenceNightingale,withwhatseemslikeasob.”ThesaddestsighttobeseenintheEast—nay,probablyintheworld—isthepeasantofourEasternEmpire.“Andshegoesontoshowthecausesoftheterriblefamines,intaxationwhichtakesfromthecultivatorstheverymeansofcultivation,andtheactualslaverytowhichtheryotsarereducedas”theconsequencesofourownlaws“;producingin”themostfertilecountryintheworld,agrinding,chronicsemi-starvationinmanyplaceswherewhatiscalledfaminedoesnotexist.ThefamineswhichhavebeendevastatingIndia,“saysH.M.Hyndman,areinthemainfinancialfamines.Menandwomencannotgetfood,becausetheycannotsavethemoneytobuyit.Yetwearedriven,sowesay,totaxthesepeoplemore.”Andheshowshow,evenfromfaminestrickendistricts,foodisexportedinpaymentoftaxes,andhowthewholeofIndiaissubjectedtoasteadyandexhaustingdrain,which,combinedwiththeenormousexpensesofgovernment,ismakingthepopulationyearbyyearpoorer.TheexportsofIndiaconsistalmostexclusivelyofagriculturalproducts.Foratleastone-thirdofthese,asMr.Hyndmanshows,noreturnwhateverisreceived;theyrepresenttribute—remittancesmadebyEnglishmeninIndia,orexpensesoftheEnglishbranchoftheIndiangovernment.Andfortherest,thereturnisforthemostpartgovernmentstores,orarticlesofcomfortandluxuryusedbytheEnglishmastersofIndia.HeshowsthattheexpensesofgovernmenthavebeenenormouslyincreasedunderImperialrule;thattherelentlesstaxationofapopulationsomiserablypoorthatthemassesarenotmorethanhalffed,isrobbingthemoftheirscantymeansforcultivatingthesoil;thatthenumberofbullocks(theIndiandraftanimal)isdecreasing,andthescantyimplementsofculturebeinggivenuptomoneylenders,fromwhom“we,abusinesspeople,areforcingthecultivatorstoborrowat12,24,60percent.tobuildandpaytheinterestonthecostofvastpublicworks,whichhaveneverpaidnearlyfivepercent.”SaysMr.Hyndman:“ThetruthisthatIndiansocietyasawholehasbeenfrightfullyimpoverishedunderourrule,andthattheprocessisnowgoingonatanexceedinglyrapidrate”—astatementwhichcannotbe

doubted,inviewofthefactspresentednotonlybysuchwritersasIhavereferredto,butbyIndianofficialsthemselves.Theveryeffortsmadebythegovernmenttoalleviatefaminesdo,bytheincreasedtaxationimposed,butintensifyandextendtheirrealcause.AlthoughintherecentfamineinSouthernIndiasixmillionsofpeople,itisestimated,perishedofactualstarvation,andthegreatmassofthosewhosurvivedwereactuallystripped,yetthetaxeswerenotremittedandthesalttax,alreadyprohibitorytothegreatbulkofthesepoverty-strickenpeople,wasincreasedfortypercent.,justasaftertheterribleBengalfaminein1770therevenuewasactuallydrivenUP,byraisingassessmentsuponthesurvivorsandrigorouslyenforcingcollection.

InIndianow,asinIndiainpasttimes,itisonlythemostsuperficialviewthatcanattributewantandstarvationtopressureofpopulationupontheabilityofthelandtoproducesubsistence.Couldthecultivatorsretaintheirlittlecapital—couldtheybereleasedfromthedrainwhich,eveninnon-famineyears,reducesgreatmassesofthemtoascaleoflivingnotmerelybelowwhatisdeemednecessaryforthesepoys,butwhatEnglishhumanitygivestotheprisonersinthejails—revivingindustry,assumingmoreproductiveforms,wouldundoubtedlysufficetokeepamuchgreaterpopulation.TherearestillinIndiagreatareasuncultivated,vastmineralresourcesuntouched,anditiscertainthatthepopulationofIndiadoesnotreach,aswithinhistoricaltimesitneverhasreached,thereallimitofthesoiltofurnishsubsistence,oreventhepointwherethispowerbeginstodeclinewiththeincreasingdraftsmadeuponit.TherealcauseofwantinIndiahasbeen,andyetis,therapacityofman,nottheniggardlinessofnature.

WhatistrueofIndiaistrueofChina.DenselypopulatedasChinaisinmanyparts,thattheextremepovertyofthelowerclassesistobeattributedtocausessimilartothosewhichhaveoperatedinIndia,andnottotoogreatpopulation,isshownbymanyfacts.Insecurityprevails,productiongoesonunderthegreatestdisadvantages,andexchangeiscloselyfettered.Wherethegovernmentisasuccessionofsqueezings,and

securityforcapitalofanysortmustbepurchasedofamandarin;wheremen’sshouldersarethegreatrelianceforinlandtransportation;wherethejunkisobligedtobeconstructedsoastounfititforaseaboat;wherepiracyisaregulartrade,androbbersoftenmarchinregiments,povertywouldprevailandthefailureofacropresultinfamine,nomatterhowsparsethepopulation.ThatChinaiscapableofsupportingamuchgreaterpopulationisshownnotonlybythegreatextentofuncultivatedlandtowhichalltravelerstestify,butbytheimmenseunworkedmineraldepositswhicharethereknowntoexist.China,forinstance,issaidtocontainthelargestandfinestdepositofcoalyetanywherediscovered.Howmuchtheworkingofthesecoalbedswouldaddtotheabilitytosupportagreaterpopulation,mayreadilybeimagined.Coalisnotfood,itistrue;butitsproductionisequivalenttotheproductionoffood.For,notonlymaycoalbeexchangedforfood,asisdoneinallminingdistricts,buttheforceevolvedbyitsconsumptionmaybeusedintheproductionoffood,ormaysetlaborfreefortheproductionoffood.

NeitherinIndianorChina,therefore,canpovertyandstarvationbechargedtothepressureofpopulationagainstsubsistence.Itisnotdensepopulation,butthecauseswhichpreventsocialorganizationfromtakingitsnaturaldevelopmentandlaborfromsecuringitsfullreturn,thatkeepmillionsjustonthevergeofstarvation,andeverynowandagainforcemillionsbeyondit.ThattheHindoolaborerthinkshimselffortunatetogetahandfulofrice,thattheChineseeatratsandpuppies,isnomoreduetothepressureofpopulationthanitisduetothepressureofpopulationthattheDiggerIndiansliveongrasshoppers,ortheaboriginalinhabitantsofAustraliaeatthewormsfoundinrottenwood.

Letmebeunderstood.IdonotmeanmerelytosaythatIndiaorChinacould,withamorehighlydevelopedcivilization,maintainagreaterpopulation,fortothisanyMalthusianwouldagree.TheMalthusiandoctrinedoesnotdenythatanadvanceintheproductiveartswouldpermitagreaterpopulationtofindsubsistence.ButtheMalthusiantheoryaffirms—andthisisitsessence—that,whateverbethecapacityfor

production,thenaturaltendencyofpopulationistocomeupwithit,and,intheendeavortopressbeyondit,toproduce,tousethephraseofMalthus,thatdegreeofviceandmiserywhichisnecessarytopreventfurtherincrease;sothatasproductivepowerisincreased,populationwillcorrespondinglyincrease,andinalittletimeproducethesameresultsasbefore.WhatIsayisthis:thatnowhereisthereanyinstancewhichwillsupportthistheory;thatnowherecanwantbeproperlyattributedtothepressureofpopulationagainstthepowertoprocuresubsistenceinthethenexistingdegreeofhumanknowledge;thateverywheretheviceandmiseryattributedtoover-populationcanbetracedtothewarfare,tyranny,andoppressionwhichpreventknowledgefrombeingutilizedanddenythesecurityessentialtoproduction.Thereasonwhythenaturalincreaseofpopulationdoesnotproducewant,weshallcometohereafter.Thefactthatithasnotyetanywheredoneso,iswhatwearenowconcernedwith.ThisfactisobviouswithregardtoIndiaandChina.Itwillbeobvious,too,whereverwetracetotheircausestheresultswhichonsuperficialviewareoftentakentoproceedfromover-population.

Ireland,ofallEuropeancountries,furnishesthegreatstockexampleofover-population.Theextremepovertyofthepeasantryandthelowrateofwagesthereprevailing,theIrishfamine,andIrishemigration,areconstantlyreferredtoasademonstrationoftheMalthusiantheoryworkedoutundertheeyesofthecivilizedworld.Idoubtifamorestrikinginstancecanbecitedofthepowerofapreacceptedtheorytoblindmenastothetruerelationsoffacts.Thetruthis,anditliesonthesurface,thatIrelandhasneveryethadapopulationwhichthenaturalpowersofthecountry,intheexistingstateoftheproductivearts,couldnothavemaintainedinamplecomfort.Attheperiodofhergreatestpopulation(1840-45)Irelandcontainedsomethingovereightmillionsofpeople.Butaverylargeproportionofthemmanagedmerelytoexist—lodginginmiserablecabins,clothedwithmiserablerags,andwithbutpotatoesfortheirstaplefood.Whenthepotatoblightcame,theydiedbythousands.Butwasittheinabilityofthesoiltosupportsolargeapopulationthatcompelledsomanytoliveinthismiserableway,and

exposedthemtostarvationonthefailureofasinglerootcrop?Onthecontrary,itwasthesameremorselessrapacitythatrobbedtheIndianryotofthefruitsofhistoilandlefthimtostarvewherenatureofferedplenty.Amercilessbandittioftax-gatherersdidnotmarchthroughthelandplunderingandtorturing,butthelaborerwasjustaseffectuallystrippedbyasmercilessahordeoflandlords,amongwhomthesoilhadbeendividedastheirabsolutepossession,regardlessofanyrightsofthosewholiveduponit.

Considertheconditionsofproductionunderwhichthiseightmillionmanagedtoliveuntilthepotatoblightcame.ItwasaconditiontowhichthewordsusedbyMr.TennantinreferencetoIndiamayasappropriatelybeapplied—“thegreatspurtoindustry,thatofsecurity,wastakenaway.”Cultivationwasforthemostpartcarriedonbytenantsatwill,who,eveniftherack-rentswhichtheywereforcedtopayhadpermittedthem,didnotdaretomakeimprovementswhichwouldhavebeenbutthesignalforanincreaseofrent.Laborwasthusappliedinthemostinefficientandwastefulmanner,andlaborwasdissipatedinaimlessidlenessthat,withanysecurityforitsfruits,wouldhavebeenappliedunremittingly.Butevenundertheseconditions,itisamatteroffactthatIrelanddidmorethansupporteightmillions.Forwhenherpopulationwasatitshighest,Irelandwasafoodexportingcountry.Evenduringthefamine,grainandmeatandbutterandcheesewerecartedforexportationalongroadslinedwiththestarvingandpasttrenchesintowhichthedeadwerepiled.Fortheseexportsoffood,oratleastforagreatpartofthem,therewasnoreturn.SofarasthepeopleofIrelandwereconcerned,thefoodthusexportedmightaswellhavebeenburneduporthrownintothesea,orneverproduced.Itwentnotasanexchange,butasatribute—topaytherentofabsenteelandlords;alevywrungfromproducersbythosewhoinnowisecontributedtoproduction.

Hadthisfoodbeenlefttothosewhoraisedit;hadthecultivatorsofthesoilbeenpermittedtoretainandusethecapitaltheirlaborproduced;hadsecuritystimulatedindustryandpermittedtheadoptionofeconomical

methods,therewouldhavebeenenoughtosupportinbounteouscomfortthelargestpopulationIrelandeverhad,andthepotatoblightmighthavecomeandgonewithoutstintingasinglehumanbeingofafullmeal.Foritwasnottheimprudence“ofIrishpeasants,”asEnglisheconomistscoldlysay,whichinducedthemtomakethepotatothestapleoftheirfood.Irishemigrants,whentheycangetotherthings,donotliveuponthepotato,andcertainlyintheUnitedStatestheprudenceoftheIrishcharacter,inendeavoringtolaybysomethingforarainyday,isremarkable.Theylivedonthepotato,becauserack-rentsstrippedeverythingelsefromthem.Thetruthis,thatthepovertyandmiseryofIrelandhaveneverbeenfairlyattributabletoover-population.

McCulloch,writingin1838,says,inNoteIVto“WealthofNations”:

“ThewonderfuldensityofpopulationinIrelandistheimmediatecauseoftheabjectpovertyanddepressedconditionofthegreatbulkofthepeople.ItisnottoomuchtosaythatthereareatpresentmorethandoublethepersonsinIrelanditis,withitsexistingmeansofproduction,ableeitherfullytoemployortomaintaininamoderatestateofcomfort.”

Asin1841thepopulationofIrelandwasgivenas8,175,124,wemaysetitdownin1838asabouteightmillions.Thus,tochangeMcCulloch’snegativeintoanaffirmative,Irelandwould,accordingtotheover-populationtheory,havebeenabletoemployfullyandmaintaininamoderatestateofcomfortsomethinglessthanfourmillionpersons.Now,intheearlypartoftheprecedingcentury,whenDeanSwiftwrotehis“ModestProposal,”thepopulationofIrelandwasabouttwomillions.AsneitherthemeansnortheartsofproductionhadperceptiblyadvancedinIrelandduringtheinterval,then—iftheabjectpovertyanddepressedconditionoftheIrishpeoplein1838wereattributabletoover-population—thereshould,uponMcCulloch’sownadmission,havebeeninIrelandin1727morethanfullemployment,andmuchmorethanamoderatestateofcomfort,forthewholetwomillions.Yet,insteadofthisbeingthecase,theabjectpovertyanddepressedconditionoftheIrishpeoplein

1727weresuch,that,withburning,blisteringirony,DeanSwiftproposedtorelievesurpluspopulationbycultivatingatasteforroastedbabies,andbringingyearlytotheshambles,asdaintyfoodfortherich,100,000Irishinfants!

ItisdifficultforonewhohasbeenlookingovertheliteratureofIrishmisery,aswhilewritingthischapterIhavebeendoing,tospeakindecoroustermsofthecomplacentattributionofIrishwantandsufferingtoover-populationwhichistobefoundevenintheworksofsuchhigh-mindedmenasMillandBuckle.Iknowofnothingbettercalculatedtomakethebloodbollthanthecoldaccountsofthegrasping,grindingtyrannytowhichtheIrishpeoplehavebeensubjected,andtowhich,andnottoanyinabilityofthelandtosupportitspopulation,IrishpauperismandIrishfaminearetobeattributed;andwereitnotfortheenervatingeffectwhichthehistoryoftheworldprovestobeeverywheretheresultofabjectpoverty,itwouldbedifficulttoresistsomethinglikeafeelingofcontemptforaracewho,stungbysuchwrongs,haveonlyoccasionallymurderedalandlord!

Whetherover-populationeverdidcausepauperismandstarvation,maybeanopenquestion;butthepauperismandstarvationofIrelandcannomorebeattributedtothiscausethancantheslavetradebeattributedtotheover-populationofAfrica,orthedestructionofJerusalemtotheinabilityofsubsistencetokeeppacewithreproduction.HadIrelandbeenbynatureagroveofbananasandbread-fruit,hadhercoastsbeenlinedbytheguano-depositsoftheChinchas,andthesunoflowerlatitudeswarmedintomoreabundantlifehermoistsoil,thesocialconditionsthathaveprevailedtherewouldstillhavebroughtforthpovertyandstarvation.Howcouldtherefailtobepauperismandfamineinacountrywhererack-rentswrestedfromthecultivatorofthesoilalltheproduceofhislaborexceptjustenoughtomaintainlifeingoodseasons;wheretenureatwillforbadeimprovementsandremovedincentivetoanybutthemostwastefulandpoverty-strickenculture;wherethetenantdarednotaccumulatecapital,evenifhecouldgetit,forfearthelandlordwould

demanditintherent;whereinfacthewasanabjectslave,who,atthenodofahumanbeinglikehimself,mightatanytimebedrivenfromhismiserablemudcabin,ahouseless,homeless,starvingwanderer,forbiddeneventopluckthespontaneousfruitsoftheearth,ortotrapawildharetosatisfyhishunger?Nomatterhowsparsethepopulation,nomatterwhatthenaturalresources,arenotpauperismandstarvationnecessaryconsequencesinalandwheretheproducersofwealtharecompelledtoworkunderconditionswhichdeprivethemofhope,ofself-respect,ofenergy,ofthrift;whereabsenteelandlordsdrainawaywithoutreturnatleastafourthofthenetproduceofthesoil,andwhen,besidesthem,astarvingindustrymustsupportresidentlandlords,withtheirhorsesandhounds,agents,jobbers,middlemenandbailiffs,analienstatechurchtoinsultreligiousprejudices,andanarmyofpolicemenandsoldierstooveraweandhuntdownanyoppositiontotheiniquitoussystem?Isitnotimpietyfarworsethanatheismtochargeuponnaturallawsmiserysocaused?

Whatistrueinthesethreecaseswillbefounduponexaminationtrueofallcases.Sofarasourknowledgeoffactsgoes,wemaysafelydenythattheincreaseofpopulationhaseveryetpresseduponsubsistenceinsuchawayastoproduceviceandmisery;thatincreaseofnumbershaseveryetdecreasedtherelativeproductionoffood.ThefaminesofIndia,China,andIrelandcannomorebecreditedtoover-populationthanthefaminesofsparselypopulatedBrazil.TheviceandmiserythatcomeofwantcannomorebeattributedtotheniggardlinessofNaturethancanthesixmillionsslainbytheswordofGenghisKhan,Tamerlane’spyramidofskulls,ortheexterminationoftheancientBritonsoroftheaboriginalinhabitantsoftheWestIndies.

Malthus’otherworks,thoughwrittenafterhebecamefamous,madenomark,andaretreatedwithcontemptevenbythosewhofindintheEssayagreatdiscovery.TheEncyclopædiaBritannica,forinstance,thoughfullyacceptingtheMalthusiantheory,saysofMalthus’PoliticalEconomy:”Itisveryillarranged,andisinnorespecteitherapracticalor

ascientificexpositionofthesubject.ItisingreatpartoccupiedwithanexaminationofpartsofMr.Ricardo’speculiardoctrines,andwithaninquiryintothenatureandcausesofvalue.Nothing,however,canbemoreunsatisfactorythanthesediscussions.IntruthMr.MalthusneverhadanyclearoraccurateperceptionofMr.Ricardo’stheories,oroftheprincipleswhichdeterminethevalueinexchangeofdifferentarticles.“

Isayconsiderablecountry,becausetheremaybesmallislands,suchasPitcairn’sIsland,cutofffromcommunicationwiththerestoftheworldandconsequentlyfromtheexchangeswhicharenecessarytotheimprovedmodesofproductionresortedtoaspopulationbecomesdense,whichmayseemtoofferexamplesinpoint.Amoment’sreflection,however,willshowthattheseexceptionalcasesarenotinpoint.

AsmaybeseenfromthemapinH.H.Bancroft’s”NativeRaces,“theStateofVeraCruzisnotoneofthosepartsofMexiconoticeableforitsantiquities.YetHugoFink,ofCordova,writingtotheSmithsonianInstitution(Reports1870),saysthereishardlyafootinthewholeStateinwhichbyexcavationeitherabrokenobsidianknifeorabrokenpieceofpotteryisnotfound;thatthewholecountryisintersectedwithparallellinesofstonesintendedtokeeptheearthfromwashingawayintherainyseason,whichshowsthateventheverypoorestlandwasputintorequisition,andthatitisimpossibletoresisttheconclusionthattheancientpopulationwasatleastasdenseasitisatpresentinthemostpopulousdistrictsofEurope.

ItakethesefiguresfromtheSmithsonianReportfor1873,leavingoutdecimals.MM.BehmandWagnerputthepopulationofChinaat446,500,000,thoughtherearesomewhocontendthatitdoesnotexceed150,000,000.TheyputthepopulationofHitherIndiaat206,225,580,giving132.29tothesquaremile;ofCeylonat2,405,287Or97.36tothesquaremile;ofFurtherIndiaat21,018,062,or27.94tothesquaremile.Theyestimatethepopulationoftheworldat1,377,000,000,anaverageof26.64tothesquaremile.

HistoryofCivilization,”Vol.1,Chap.2.InthischapterBucklehascollectedagreatdealofevidenceoftheoppressionanddegradationofthepeopleofIndiafromthemostremotetimes,aconditionwhich,blindedbytheMalthusiandoctrinehehasacceptedandmadethecornerstoneofhistheoryofthedevelopmentofcivilization,heattributestothecasewithwhichfoodcantherebeproduced.

IndiaRecreations,“byRev.Wm.Tennant.London,1804,Vol.1,Sec.XXXIX

MissNightingale(“ThePeopleofIndia,”inNineteenthCenturyforAugust,1878)givesinstances,whichshesaysrepresentmillionsofcases,ofthestateofpeonagetowhichthecultivatorsofsouthernIndiahavebeenreducedthroughthefacilitiesaffordedbytheCivilCourtstothefraudsandoppressionsofmoneylendersandminornativeofficials.“OurCivilCourtsareregardedasinstitutionsforenablingtherichtogrindthefacesofthepoor,andmanyarefaintoseekarefugefromtheirjurisdictionwithinnativeterritory,”saysSirDavidWedderburn,inanarticleonProtectedPrincesinIndia,inaprevious(July)numberofthesamemagazine,inwhichhealsogivesanativestate,wheretaxationiscomparativelylight,asaninstanceofthemostprosperouspopulationofIndia.

Seearticlesin”NineteenthCentury“forOctober,1878,andMarch,1879.

Prof.Fawcett,inarecentarticleontheproposedloanstoIndia,callsattentiontosuchitemsas£1,200foroutfitandpassageofamemberoftheGovernorGeneral’sCouncil;£2,450foroutfitandpassageofbishopsofCalcuttaandBombay.

FlorenceNightingalesays100percent.iscommon,andeventhenthecultivatorisrobbedinwayswhichsheillustrates.Itishardlynecessarytosaythattheserates,likethoseofthepawnbroker,arenotinterestintheeconomicsenseoftheterm.

TheseatofrecentfamineinChinawasnotthemostthicklysettleddistricts.

[BacktoTableofContents]

ChapterIIIInferencesfromAnalogy

IfweturnfromanexaminationofthefactsbroughtforwardinillustrationoftheMalthusiantheorytoconsidertheanalogiesbywhichitissupported,weshallfindthesameinconclusiveness.

Thestrengthofthereproductiveforceintheanimalandvegetablekingdoms—suchfactsasthatasinglepairofsalmonmight,ifpreservedfromtheirnaturalenemiesforafewyears,filltheocean;thatapairofrabbitswould,underthesamecircumstances,soonoverrunacontinent;thatmanyplantsscattertheirseedsbythehundredfold,andsomeinsectsdepositthousandsofeggs;andthateverywherethroughthesekingdomseachspeciesconstantlytendstopress,andwhennotlimitedbythenumberofitsenemies,evidentlydoespress,againstthelimitsofsubsistence—isconstantlycited,fromMalthusdowntothetextbooksofthepresentday,asshowingthatpopulationlikewisetendstopressagainstsubsistence,and,whenunrestrainedbyothermeans,itsnaturalincreasemustnecessarilyresultinsuchlowwagesandwant,or,ifthatwillnotsuffice,andtheincreasestillgoeson,insuchactualstarvation,aswillkeepitwithinthelimitsofsubsistence.

Butisthisanalogyvalid?Itisfromthevegetableandanimalkingdomsthatman’sfoodisdrawn,andhencethegreaterstrengthofthereproductiveforceinthevegetableandanimalkingdomsthaninmansimplyprovesthepowerofsubsistencetoincreasefasterthanpopulation.Doesnotthefactthatallofthethingswhichfurnishman’ssubsistencehavethepowertomultiplymanyfold—someofthemmanythousandfold,andsomeofthemmanymillionorevenbillionfoldwhileheisonlydoublinghisnumbers,showthat,lethumanbeingsincreasetothefullextentoftheirreproductivepower,theincreaseofpopulationcanneverexceedsubsistence?Thisisclearwhenitisrememberedthatthoughin

thevegetableandanimalkingdomseachspecies,byvirtueofitsreproductivepower,naturallyandnecessarilypressesagainsttheconditionswhichlimititsfurtherincrease,yettheseconditionsarenowherefixedandfinal.Nospeciesreachestheultimatelimitofsoil,water,air,andsunshine;buttheactuallimitofeachisintheexistenceofotherspecies,itsrivals,itsenemies,oritsfood.Thustheconditionswhichlimittheexistenceofsuchofthesespeciesasaffordhimsubsistencemancanextend(insomecaseshismereappearancewillextendthem),andthusthereproductiveforcesofthespecieswhichsupplyhiswants,insteadofwastingthemselvesagainsttheirformerlimit,startforwardinhisserviceatapacewhichhispowersofincreasecannotrival.Ifhebutshoothawks,food-birdswillincrease;ifhebuttrapfoxesthewildrabbitswillmultiply;thehoneybeemoveswiththepioneer,andontheorganicmatterwithwhichman’spresencefillstherivers,fishesfeed.

Evenifanyconsiderationoffinalcausesbeexcluded;evenifitbenotpermittedtosuggestthatthehighandconstantreproductiveforceinvegetablesandanimalshasbeenorderedtoenablethemtosubservetheusesofman,andthatthereforethepressureofthelowerformsoflifeagainstsubsistencedoesnottendtoshowthatitmustlikewisebesowithman,“theroofandcrownofthings”;yettherestillremainsadistinctionbetweenmanandallotherformsoflifethatdestroystheanalogy.Ofalllivingthings,manistheonlyonewhocangiveplaytothereproductiveforces,morepowerfulthanhisown,whichsupplyhimwithfood.Beast,insect,bird,andfishtakeonlywhattheyfind.Theirincreaseisattheexpenseoftheirfood,andwhentheyhavereachedtheexistinglimitsoffood,theirfoodmustincreasebeforetheycanincrease.Butunlikethatofanyotherlivingthing,theincreaseofmaninvolvestheincreaseofhisfood.IfbearsinsteadofmenhadbeenshippedfromEuropetotheNorthAmericancontinent,therewouldnowbenomorebearsthaninthetimeofColumbus,andpossiblyfewer,forbearfoodwouldnothavebeenincreasednortheconditionsofbearlifeextended,bythebearimmigration,butprobablythereverse.ButwithinthelimitsoftheUnited

Statesalone,therearenowforty-fivemillionsofmenwherethentherewereonlyafewhundredthousand,andyetthereisnowwithinthatterritorymuchmorefoodpercapitafortheforty-fivemillionsthantherewasthenforthefewhundredthousand.Itisnottheincreaseoffoodthathascausedthisincreaseofmen;buttheincreaseofmenthathasbroughtabouttheincreaseoffood.Thereismorefood,simplybecausetherearemoremen.

Hereisadifferencebetweentheanimalandtheman.Boththejay-hawkandthemaneatchickens,butthemorejay-hawksthefewerchickens,whilethemorementhemorechickens.Boththesealandthemaneatsalmon,butwhenasealtakesasalmonthereisasalmontheless,andweresealstoincreasepastacertainpointsalmonmustdiminish;whilebyplacingthespawnofthesalmonunderfavorableconditionsmancansoincreasethenumberofsalmonasmorethantomakeupforallhemaytake,andthus,nomatterhowmuchmenmayincrease,theirincreaseneedneveroutrunthesupplyofsalmon.

Inshort,whileallthroughthevegetableandanimalkingdomsthelimitofsubsistenceisindependentofthethingsubsisted,withmanthelimitofsubsistenceis,withinthefinallimitsofearth,air,water,andsunshine,dependentuponmanhimself.Andthisbeingthecase,theanalogywhichitissoughttodrawbetweenthelowerformsoflifeandmanmanifestlyfails.Whilevegetablesandanimalsdopressagainstthelimitsofsubsistence,mancannotpressagainstthelimitsofhissubsistenceuntilthelimitsoftheglobearereached.Observe,thisisnotmerelytrueofthewhole,butofalltheparts.Aswecannotreducethelevelofthesmallestbayorharborwithoutreducingthelevelnotmerelyoftheoceanwithwhichitcommunicates,butofalltheseasandoceansoftheworld,sothelimitofsubsistenceinanyparticularplaceisnotthephysicallimitofthatplace,butthephysicallimitoftheglobe.Fiftysquaremilesofsoilwillinthepresentstateoftheproductiveartsyieldsubsistenceforonlysomethousandsofpeople,butonthefiftysquaremileswhichcomprisethecityofLondonsomethreeandahalfmillionsofpeopleare

maintained,andsubsistenceincreasesaspopulationincreases.Sofarasthelimitofsubsistenceisconcerned,Londonmaygrowtoapopulationofahundredmillions,orfivehundredmillions,orathousandmillions,forshedrawsforsubsistenceuponthewholeglobe,andthelimitwhichsubsistencesetstohergrowthinpopulationisthelimitoftheglobetofurnishfoodforitsinhabitants.

ButherewillariseanotherideafromwhichtheMalthusiantheoryderivesgreatsupport—thatofthediminishingproductivenessofland.Asconclusivelyprovingthelawofdiminishingproductivenessitissaidinthecurrenttreatisesthatwereitnottruethatbeyondacertainpointlandyieldslessandlesstoadditionalapplicationsoflaborandcapital,increasingpopulationwouldnotcauseanyextensionofcultivation,butthatalltheincreasedsuppliesneededcouldandwouldberaisedwithouttakingintocultivationanyfreshground.Assenttothisseemstoinvolveassenttothedoctrinethatthedifficultyofobtainingsubsistencemustincreasewithincreasingpopulation.

ButIthinkthenecessityisonlyinseeming.Ifthepropositionbeanalyzeditwillbeseentobelongtoaclassthatdependforvalidityuponanimpliedorsuggestedqualification—atruthrelatively,whichtakenabsolutelybecomesanon-truth.Forthatmancannotexhaustorlessenthepowersofnaturefollowsfromtheindestructibilityofmatterandthepersistenceofforce.Productionandconsumptionareonlyrelativeterms.Speakingabsolutely,manneitherproducesnorconsumes.Thewholehumanrace,weretheytolabortoinfinity,couldnotmakethisrollingsphereoneatomheavieroroneatomlighter,couldnotaddtoordiminishbyoneiotathesumoftheforceswhoseeverlastingcirclingproducesallmotionandsustainsalllife.Asthewaterthatwetakefromtheoceanmustagainreturntotheocean,sothefoodwetakefromthereservoirsofnatureis,fromthemomentwetakeit,onitswaybacktothosereservoirs.Whatwedrawfromalimitedextentoflandmaytemporarilyreducetheproductivenessofthatland,becausethereturnmaybetootherland,ormaybedividedbetweenthatlandandotherland,or,perhaps,allland;but

thispossibilitylessenswithincreasingarea,andceaseswhenthewholeglobeisconsidered.Thattheearthcouldmaintainathousandbillionsofpeopleaseasilyasathousandmillionsisanecessarydeductionfromthemanifesttruthsthat,atleastsofarasouragencyisconcerned,matteriseternalandforcemustforevercontinuetoact.Lifedoesnotuseuptheforcesthatmaintainlife.Wecomeintothematerialuniversebringingnothing;wetakenothingawaywhenwedepart.Thehumanbeing,physicallyconsidered,isbutatransientformofmatter,achangingmodeofmotion.Thematterremainsandtheforcepersists.Nothingislessened,nothingisweakened.Andfromthisitfollowsthatthelimittothepopulationoftheglobecanbeonlythelimitofspace.

Nowthislimitationofspace—thisdangerthatthehumanracemayincreasebeyondthepossibilityoffindingelbowroom—issofaroffastohaveforusnomorepracticalinterestthantherecurrenceoftheglacialperiodorthefinalextinguishmentofthesun.Yetremoteandshadowyasitis,itisthispossibilitywhichgivestotheMalthusiantheoryitsapparentlyself-evidentcharacter.Butifwefollowit,eventhisshadowwilldisappear.It,also,springsfromafalseanalogy.Thatvegetableandanimallifetendtopressagainstthelimitsofspacedoesnotprovethesametendencyinhumanlife.

Grantedthatmanisonlyamorehighlydevelopedanimal;thatthering-tailedmonkeyisadistantrelativewhohasgraduallydevelopedacrobatictendencies,andthehump-backedwhaleafar-offconnectionwhoinearlylifetooktothesea—grantedthatbackoftheseheiskintothevegetable,andisstillsubjecttothesamelawsasplants,fishes,birds,andbeasts.Yetthereisstillthisdifferencebetweenmanandallotheranimals—heistheonlyanimalwhosedesiresincreaseastheyarefed;theonlyanimalthatisneversatisfied.Thewantsofeveryotherlivingthingareuniformandfixed.Theoxofto-dayaspirestonomorethandidtheoxwhenmanfirstyokedhim.TheseagulloftheEnglishChannel,whopoiseshimselfabovetheswiftsteamer,wantsnobetterfoodorlodgingthanthegullswhocircledroundasthekeelsofCæsar’sgalleysfirstgratedonaBritish

beach.Ofallthatnatureoffersthem,beiteversoabundant,alllivingthingssavemancantake,andcarefor,onlyenoughtosupplywantswhicharedefiniteandfixed.Theonlyusetheycanmakeofadditionalsuppliesoradditionalopportunitiesistomultiply.

Butnotsowithman.Nosoonerarehisanimalwantssatisfiedthannewwantsarise.Foodhewantsfirst,asdoesthebeast;shelternext,asdoesthebeast;andthesegiven,hisreproductiveinstinctsasserttheirsway,asdothoseofthebeast.Butheremanandbeastpartcompany.Thebeastnevergoesfurther;themanhasbutsethisfeetonthefirststepofaninfiniteprogression—aprogressionuponwhichthebeastneverenters;aprogressionawayfromandabovethebeast.

Thedemandforquantityoncesatisfied,heseeksquality.Theverydesiresthathehasincommonwiththebeastbecomeextended,refined,exalted.Itisnotmerelyhunger,buttaste,thatseeksgratificationinfood;inclothes,heseeksnotmerelycomfort,butadornment;therudeshelterbecomesahouse;theundiscriminatingsexualattractionbeginstotransmuteitselfintosubtileinfluences,andthehardandcommonstockofanimallifetoblossomandtobloomintoshapesofdelicatebeauty.Aspowertogratifyhiswantsincreases,sodoesaspirationgrow.Helddowntolowerlevelsofdesire,LuculluswillsupwithLucullus;twelveboarsturnonspitsthatAntony’smouthfulofmeatmaybedonetoaturn;everykingdomofNatureberansackedtoaddtoCleopatra’scharms,andmarblecolonnadesandhanginggardensandpyramidsthatrivalthehillsarise.Passingintohigherformsofdesire,thatwhichslumberedintheplantandfitfullystirredinthebeast,awakesintheman.Theeyesofthemindareopened,andhelongstoknow.Hebravesthescorchingheatofthedesertandtheicyblastsofthepolarsea,butnotforfood;hewatchesallnight,butitistotracethecirclingoftheeternalstars.Headdstoiltotoil,togratifyahungernoanimalhasfelt;toassuageathirstnobeastcanknow.

Outuponnature,inuponhimself,backthroughthemiststhatshroudthe

past,forwardintothedarknessthatoverhangsthefuture,turnstherestlessdesirethatariseswhentheanimalwantsslumberinsatisfaction.Beneaththings,heseeksthelaw;hewouldknowhowtheglobewasforgedandthestarswerehung,andtracetotheiroriginsthespringsoflife.And,then,asthemandevelopshisnoblernature,therearisesthedesirehigheryet—thepassionofpassions,thehopeofhopes—thedesirethathe,evenhe,maysomehowaidinmakinglifebetterandbrighter,indestroyingwantandsin,sorrowandshame.Hemastersandcurbstheanimal;heturnshisbackuponthefeastandrenouncestheplaceofpower;heleavesittootherstoaccumulatewealth,togratifypleasanttastes,tobaskthemselvesinthewarmsunshineofthebriefday.Heworksforthoseheneversawandnevercansee;forafame,ormaybebutforascantjustice,thatcanonlycomelongaftertheclodshaverattleduponhiscoffinlid.Hetoilsintheadvance,whereitiscold,andthereislittlecheerfrommen,andthestonesaresharpandthebramblesthick.Amidthescoffsofthepresentandthesneersthatstablikeknives,hebuildsforthefuture;hecutsthetrailthatprogressivehumanitymayhereafterbroadenintoahighroad.Intohigher,granderspheresdesiremountsandbeckons,andastarthatrisesintheeastleadshimon.Lo!thepulsesofthemanthrobwiththeyearningsofthegod—hewouldaidintheprocessofthesuns!

Isnotthegulftoowidefortheanalogytospan?Givemorefood,openfullerconditionsoflife,andthevegetableoranimalcanbutmultiply;themanwilldevelop.Intheonetheexpansiveforcecanbutextendexistenceinnewnumbers;intheother,itwillinevitablytendtoextendexistenceinhigherformsandwiderpowers.Manisananimal;butheisananimalplussomethingelse.Heisthemythicearth-tree,whoserootsareintheground,butwhosetopmostbranchesmayblossomintheheavens!

Whicheverwayitbeturned,thereasoningbywhichthistheoryoftheconstanttendencyofpopulationtopressagainstthelimitsofsubsistenceissupportedshowsanunwarrantedassumption,anundistributedmiddle,asthelogicianswouldsay.Factsdonotwarrantit,analogydoesnot

countenanceit.Itisapurechimeraoftheimagination,suchasthosethatforalongtimepreventedmenfromrecognizingtherotundityandmotionoftheearth.Itisjustsuchatheoryasthatunderneathuseverythingnotfastenedtotheearthmustfalloff;asthataballdroppedfromthemastofashipinmotionmustfallbehindthemast;asthatalivefishplacedinavesselfullofwaterwilldisplacenowater.Itisasunfounded,ifnotasgrotesque,asanassumptionwecanimagineAdammighthavemadehadhebeenofanarithmeticalturnofmindandfiguredonthegrowthofhisfirstbabyfromtherateofitsearlymonths.Fromthefactthatatbirthitweighedtenpoundsandineightmonthsthereaftertwentypounds,hemight,withthearithmeticalknowledgewhichsomesageshavesupposedhimtopossess,havecipheredoutaresultquiteasstrikingasthatofMr.Malthus;namely,thatbythetimeitgottobetenyearsolditwouldbeasheavyasanox,attwelveasheavyasanelephant,andatthirtywouldweighnolessthan175,716,339,548tons.

Thefactis,thereisnomorereasonforustotroubleourselvesaboutthepressureofpopulationuponsubsistencethantherewasforAdamtoworryhimselfabouttherapidgrowthofhisbaby.Sofarasaninferenceisreallywarrantedbyfactsandsuggestedbyanalogy,itisthatthelawofpopulationincludessuchbeautifuladaptationsasinvestigationhasalreadyshowninothernaturallaws,andthatwearenomorewarrantedinassumingthattheinstinctofreproduction,inthenaturaldevelopmentofsociety,tendstoproducemiseryandvice,thanweshouldbeinassumingthattheforceofgravitationmusthurlthemoontotheearthandtheearthtothesun,orthaninassumingfromthecontractionofwaterwithreductionsoftemperaturedowntothirty-twodegreesthatriversandlakesmustfreezetothebottomwitheveryfrost,andthetemperateregionsofearthbethusrendereduninhabitablebyevenmoderatewinters.That,besidesthepositiveandprudentialchecksofMalthus,thereisathirdcheckwhichcomesintoplaywiththeelevationofthestandardofcomfortandthedevelopmentoftheintellect,ispointedtobymanywell-knownfacts.Theproportionofbirthsisnotoriouslygreaterinnewsettlements,wherethestrugglewithnatureleaveslittleopportunityfor

intellectuallife,andamongthepoverty-boundclassesofoldercountries,whointhemidstofwealtharedeprivedofallitsadvantagesandreducedtoallbutananimalexistence,thanitisamongtheclassestowhomtheincreaseofwealthhasbroughtindependence,leisure,comfort,andafullerandmorevariedlife.Thisfact,longagorecognizedinthehomelyadage,“arichmanforluck,andapoormanforchildren,”wasnotedbyAdamSmith,whosaysitisnotuncommontofindapoorhalf-starvedHighlandwomanhasbeenthemotheroftwenty-threeortwenty-fourchildren,andiseverywheresoclearlyperceptiblethatitisonlynecessarytoalludetoit.

Ifthereallawofpopulationisthusindicated,asIthinkitmustbe,thenthetendencytoincrease,insteadofbeingalwaysuniform,isstrongwhereagreaterpopulationwouldgiveincreasedcomfort,andwheretheperpetuityoftheraceisthreatenedbythemortalityinducedbyadverseconditions;butweakensjustasthehigherdevelopmentoftheIndividualbecomespossibleandtheperpetuityoftheraceisassured.Inotherwords,thelawofpopulationaccordswithandissubordinatetothelawofintellectualdevelopment,andanydangerthathumanbeingsmaybebroughtintoaworldwheretheycannotbeprovidedforarisesnotfromtheordinancesofnature,butfromsocialmaladjustmentsthatinthemidstofwealthcondemnmentowant.Thetruthofthiswill,Ithink,beconclusivelydemonstratedwhen,afterhavingclearedtheground,wetraceoutthetruelawsofsocialgrowth.Butitwoulddisturbthenaturalorderoftheargumenttoanticipatethemnow.IfIhavesucceededinmaintaininganegative—inshowingthattheMalthusiantheoryisnotprovedbythereasoningbywhichitissupported—itisenoughforthepresent.InthenextchapterIproposetotaketheaffirmativeandshowthatitisdisprovedbyfacts.

[BacktoTableofContents]

ChapterIVDisproofoftheMalthusianTheory

Sodeeplyrootedandthoroughlyentwinedwiththereasoningsofthecurrentpoliticaleconomyisthisdoctrinethatincreaseofpopulationtendstoreducewagesandproducepoverty,socompletelydoesitharmonizewithmanypopularnotions,andsoliableisittorecurindifferentshapes,thatIhavethoughtitnecessarytomeetandshowinsomedetailtheinsufficiencyoftheargumentsbywhichitissupported,beforebringingittothetestoffacts;forthegeneralacceptanceofthistheoryaddsamoststrikinginstancetothemanywhichthehistoryofthoughtaffordsofhoweasilymenignorefactswhenblindfoldedbyapreacceptedtheory.

Tothesupremeandfinaltestoffactswecaneasilybringthistheory.Manifestlythequestionwhetherincreaseofpopulationnecessarilytendstoreducewagesandcausewant,issimplythequestionwhetherittendstoreducetheamountofwealththatcanbeproducedbyagivenamountoflabor.

Thisiswhatthecurrentdoctrineholds.Theacceptedtheoryis,thatthemorethatisrequiredfromnaturethelessgenerouslydoessherespond,sothatdoublingtheapplicationoflaborwillnotdoubletheproduct;andhence,increaseofpopulationmusttendtoreducewagesanddeepenpoverty,or,inthephraseofMalthus,mustresultinviceandmisery.ToquotethelanguageofJohnStuartMill:

Nature,nottheinjusticeofsociety,isthecauseofthepenaltyattachedtoover-population.Anunjustdistributionofwealthdoesnotaggravatetheevil,but,atmost,causesittobesomewhatearlierfelt.Itisinvaintosaythatallmouthswhichtheincreaseofmankindcallsintoexistencebringwiththemhands.Thenewmouthsrequireasmuchfoodastheoldones,

andthehandsdonotproduceasmuch.Ifallinstrumentsofproductionwereheldinjointpropertybythewholepeople,andtheproducedividedwithperfectequalityamongthem,andifinasocietythusconstituted,industrywereasenergeticandtheproduceasampleasatthepresenttime,therewouldbeenoughtomakealltheexistingpopulationextremelycomfortable;butwhenthatpopulationhaddoubleditself,as,withexistinghabitsofthepeople,undersuchanencouragement,itundoubtedlywouldinlittlemorethantwentyyears,whatwouldthenbetheircondition?Unlesstheartsofproductionwereinthesametimeimprovedinanalmostunexampleddegree,theinferiorsoilswhichmustberesortedto,andthemorelaboriousandscantilyremunerativecultivationwhichmustbeemployedonthesuperiorsoils,toprocurefoodforsomuchlargerapopulation,would,byaninsuperablenecessity,rendereveryindividualinthecommunitypoorerthanbefore.Ifthepopulationcontinuedtoincreaseatthesamerate,atimewouldsoonarrivewhennoonewouldhavemorethanmerenecessaries,and,soonafter,atimewhennoonewouldhaveasufficiencyofthose,andthefurtherincreaseofpopulationwouldbearrestedbydeath.“

AllthisIdeny.Iassertthattheveryreverseofthesepropositionsistrue.Iassertthatinanygivenstateofcivilizationagreaternumberofpeoplecancollectivelybebetterprovidedforthanasmaller.Iassertthattheinjusticeofsociety,nottheniggardlinessofnature,isthecauseofthewantandmiserywhichthecurrenttheoryattributestoover-population.Iassertthatthenewmouthswhichanincreasingpopulationcallsintoexistencerequirenomorefoodthantheoldones,whilethehandstheybringwiththemcaninthenaturalorderofthingsproducemore.Iassertthat,otherthingsbeingequal,thegreaterthepopulation,thegreaterthecomfortwhichanequitabledistributionofwealthwouldgivetoeachindividual.Iassertthatinastateofequalitythenaturalincreaseofpopulationwouldconstantlytendtomakeeveryindividualricherinsteadofpoorer.

Ithusdistinctlyjoinissue,andsubmitthequestiontothetestoffacts.

Butobserve(forevenattheriskofrepetitionIwishtowarnthereaderagainstaconfusionofthoughtthatisobservableeveninwritersofgreatreputation),thatthequestionoffactintowhichthisissueresolvesitselfisnotinwhatstageofpopulationismostsubsistenceproduced?butinwhatstageofpopulationisthereexhibitedthegreatestpowerofproducingwealth?Forthepowerofproducingwealthinanyformisthepowerofproducingsubsistence—andtheconsumptionofwealthinanyform,orofwealth-producingpower,isequivalenttotheconsumptionofsubsistence.Ihave,forinstance,somemoneyinmypocket.WithitImaybuyeitherfoodorcigarsorjewelryortheatertickets,andjustasIexpendmymoneydoIdeterminelabortotheproductionoffood,ofcigars,ofjewelry,oroftheatricalrepresentations.Asetofdiamondshasavalueequaltosomanybarrelsofflour—thatistosay,ittakesontheaverageasmuchlabortoproducethediamondsasitwouldtoproducesomuchflour.IfIloadmywifewithdiamonds,itisasmuchanexertionofsubsistence-producingpowerasthoughIhaddevotedsomuchfoodtopurposesofostentation.IfIkeepafootman;Itakeapossibleplowmanfromtheplow.Thebreedingandmaintenanceofarace-horserequirecareandlaborwhichwouldsufficeforthebreedingandmaintenanceofmanywork-horses.Thedestructionofwealthinvolvedinageneralilluminationorthefiringofasaluteisequivalenttotheburningupofsomuchfood;thekeepingofaregimentofsoldiers,orofawarshipandhercrew,isthediversiontounproductiveusesoflaborthatcouldproducesubsistenceformanythousandsofpeople.Thusthepowerofanypopulationtoproducethenecessariesoflifeisnottobemeasuredbythenecessariesoflifeactuallyproduced,butbytheexpenditureofpowerinallmodes.

Thereisnonecessityforabstractreasoning.Thequestionisoneofsimplefact.Doestherelativepowerofproducingwealthdecreasewiththeincreaseofpopulation?

Thefactsaresopatentthatitisonlynecessarytocallattentiontothem.Wehave,inmoderntimes,seenmanycommunitiesadvanceinpopulation.Havetheynotatthesametimeadvancedevenmorerapidly

inwealth?Weseemanycommunitiesstillincreasinginpopulation.Aretheynotalsoincreasingtheirwealthstillfaster?IsthereanydoubtthatwhileEnglandhasbeenincreasingherpopulationattherateoftwopercent.perannum,herwealthhasbeengrowinginstillgreaterproportion?IsitnottruethatwhilethepopulationoftheUnitedStateshasbeendoublingeverytwenty-nineyearsherwealthhasbeendoublingatmuchshorterintervals?Isitnottruethatundersimilarconditions—thatistosay,amongcommunitiesofsimilarpeopleinasimilarstageofcivilization—themostdenselypopulatedcommunityisalsotherichest?Arenotthemoredenselypopulatedeasternstatesricherinproportiontopopulationthanthemoresparselypopulatedwesternorsouthernstates?IsnotEngland,wherepopulationisevendenserthanintheeasternstatesoftheUnion,alsoricherinproportion?Wherewillyoufindwealthdevotedwiththemostlavishnesstononproductiveuse—costlybuildings,finefurniture,luxuriousequipages,statues,pictures,pleasuregardensandyachts?Isitnotwherepopulationisdensestratherthanwhereitissparsest?Wherewillyoufindinlargestproportionthosewhomthegeneralproductionsufficestokeepwithoutproductivelaborontheirpart—menofincomeandofelegantleisure,thieves,policemen,menialservants,lawyers,menofletters,andthelike?Isitnotwherepopulationisdenseratherthanwhereitissparse?Whenceisitthatcapitaloverflowsforremunerativeinvestment?Isitnotfromdenselypopulatedcountriestosparselypopulatedcountries?Thesethingsconclusivelyshowthatwealthisgreatestwherepopulationisdensest;thattheproductionofwealthtoagivenamountoflaborincreasesaspopulationincreases.Thesethingsareapparentwhereverweturnoureyes.Onthesamelevelofcivilization,thesamestageoftheproductivearts,government,etc.,themostpopulouscountriesarealwaysthemostwealthy.

Letustakeaparticularcase,andthatacasewhichofallthatcanbecitedseemsatfirstblushbesttosupportthetheoryweareconsidering—thecaseofacommunitywhere,whilepopulationhaslargelyincreased,wageshavegreatlydecreased,anditisnotamatterofdubiousinferencebutofobviousfactthatthegenerosityofnaturehaslessened.That

communityisCalifornia.WhenuponthediscoveryofgoldthefirstwaveofimmigrationpouredintoCaliforniaitfoundacountryinwhichnaturewasinthemostgenerousmood.Fromtheriverbanksandbarstheglitteringdepositsofthousandsofyearscouldbetakenbythemostprimitiveappliances,inamountswhichmadeanounce(616)perdayonlyordinarywages.Theplains,coveredwithnutritiousgrasses,werealivewithcountlessherdsofhorsesandcattle,soplentythatanytravelerwasatlibertytoshifthissaddletoafreshsteed,ortokillabullockifheneededasteak,leavingthehide,itsonlyvaluablepart,fortheowner.Fromtherichsoilwhichcamefirstundercultivation,themereplowingandsowingbroughtcropsthatinoldercountries,ifprocuredatall,canonlybeprocuredbythemostthoroughmanuringandcultivation.InearlyCalifornia,amidthisprofusionofnature,wagesandinterestwerehigherthananywhereelseintheworld.

Thisvirginprofusionofnaturehasbeensteadilygivingwaybeforethegreaterandgreaterdemandswhichanincreasingpopulationhasmadeuponit.Poorerandpoorerdiggingshavebeenworked,untilnownodiggingsworthspeakingofcanbefound,andgoldminingrequiresmuchcapital,largeskill,andelaboratemachinery,andinvolvesgreatrisks.“Horsescostmoney,”andcattlebredonthesage-brushplainsofNevadaarebroughtbyrailroadacrossthemountainsandkilledinSanFranciscoshambles,whilefarmersarebeginningtosavetheirstrawandlookformanure,andlandisincultivationwhichwillhardlyyieldacropthreeyearsoutoffourwithoutirrigation.Atthesametimewagesandinteresthavesteadilygonedown.Manymenarenowgladtoworkforaweekforlessthantheyoncedemandedfortheday,andmoneyisloanedbytheyearforaratewhichoncewouldhardlyhavebeenthoughtextortionatebythemonth.Istheconnectionbetweenthereducedproductivenessofnatureandthereducedrateofwagesthatofcauseandeffect?Isittruethatwagesarelowerbecauselaboryieldslesswealth?Onthecontrary!Insteadofthewealth-producingpoweroflaborbeinglessinCaliforniain1879thanin1849,Iamconvincedthatitisgreater.And,itseemstome,thatnoonewhoconsidershowenormouslyduringtheseyearsthe

efficiencyoflaborinCaliforniahasbeenincreasedbyroads,wharves,flumes,railroads,steamboats,telegraphs,andmachineryofallkinds;byacloserconnectionwiththerestoftheworld;andbythenumberlesseconomiesresultingfromalargerpopulation,candoubtthatthereturnwhichlaborreceivesfromnatureinCaliforniaisonthewholemuchgreaternowthanitwasinthedaysofunexhaustedplacersandvirginsoil—theincreaseinthepowerofthehumanfactorhavingmorethancompensatedforthedeclineinthepowerofthenaturalfactor.Thatthisconclusionisthecorrectoneisprovedbymanyfactswhichshowthattheconsumptionofwealthisnowmuchgreater,ascomparedwiththenumberoflaborers,thanitwasthen.Insteadofapopulationcomposedalmostexclusivelyofmenintheprimeoflife,alargeproportionofwomenandchildrenarenowsupported,andothernon-producershaveincreasedinmuchgreaterratiothanthepopulation;luxuryhasgrownfarmorethanwageshavefallen;wherethebesthouseswereclothandpapershanties,arenowmansionswhosemagnificencerivalsEuropeanpalaces;thereareliveriedcarriagesonthestreetsofSanFranciscoandpleasureyachtsonherbay;theclasswhocanlivesumptuouslyontheirincomeshassteadilygrown;therearerichmenbesidewhomtherichestoftheearlieryearswouldseemlittlebetterthanpaupers—inshort,thereareoneveryhandthemoststrikingandconclusiveevidencesthattheproductionandconsumptionofwealthhaveincreasedwithevengreaterrapiditythantheincreaseofpopulation,andthatifanyclassobtainslessitissolelybecauseofthegreaterinequalityofdistribution.

Whatisobviousinthisparticularinstanceisobviouswherethesurveyisextended.Therichestcountriesarenotthosewherenatureismostprolific;butthosewherelaborismostefficient—notMexico,butMassachusetts;notBrazil,butEngland.Thecountrieswherepopulationisdensestandpresseshardestuponthecapabilitiesofnature,are,otherthingsbeingequal,thecountrieswherethelargestproportionoftheproducecanbedevotedtoluxuryandthesupportofnon-producers,thecountrieswherecapitaloverflows,thecountriesthatuponexigency,suchaswar,canstandthegreatestdrain.Thattheproductionofwealthmust,

inproportiontothelaboremployed,begreaterinadenselypopulatedcountrylikeEnglandthaninnewcountrieswherewagesandinterestarehigher,isevidentfromthefactthat,thoughamuchsmallerproportionofthepopulationisengagedinproductivelabor,amuchlargersurplusisavailableforotherpurposesthanthatofsupplyingphysicalneeds.Inanewcountrythewholeavailableforceofthecommunityisdevotedtoproduction—thereisnowellmanwhodoesnotdoproductiveworkofsomekind,nowellwomanexemptfromhouseholdtasks.Therearenopaupersorbeggars,noidlerich,noclasswhoselaborisdevotedtoministeringtotheconvenienceorcapriceoftherich,nopurelyliteraryorscientificclass,nocriminalclasswholivebypreyinguponsociety,nolargeclassmaintainedtoguardsocietyagainstthem.Yetwiththewholeforceofthecommunitythusdevotedtoproduction,nosuchconsumptionofwealthinproportiontothewholepopulationtakesplace,orcanbeafforded,asgoesonintheoldcountry;for,thoughtheconditionofthelowestclassisbetter,andthereisnoonewhocannotgetaliving,thereisnoonewhogetsmuchmore—fewornonewhocanliveinanythinglikewhatwouldbecalledluxury,orevencomfort,intheoldercountry.Thatistosay,thatintheoldercountrytheconsumptionofwealthinproportiontopopulationisgreater,althoughtheproportionoflabordevotedtotheproductionofwealthisless—orthatfewerlaborersproducemorewealth;forwealthmustbeproducedbeforeitcanbeconsumed.

Itmay,however,besaid,thatthesuperiorwealthofoldercountriesisduenottosuperiorproductivepower,buttotheaccumulationsofwealthwhichthenewcountryhasnotyethadtimetomake.

Itwillbewellforamomenttoconsiderthisideaofaccumulatedwealth.Thetruthis,thatwealthcanbeaccumulatedbuttoaslightdegree,andthatcommunitiesreallylive,asthevastmajorityofindividualslive,fromhandtomouth.Wealthwillnotbearmuchaccumulation;exceptinafewunimportantformsitwillnotkeep.Thematteroftheuniverse,which,whenworkedupbylaborintodesirableforms,constituteswealth,

isconstantlytendingbacktoitsoriginalstate.Someformsofwealthwilllastforafewhours,someforafewdays,someforafewmonths,someforafewyears;andthereareveryfewformsofwealththatcanbepassedfromonegenerationtoanother.Takewealthinsomeofitsmostusefulandpermanentforms—ships,houses,railways,machinery.Unlesslaborisconstantlyexertedinpreservingandrenewingthem,theywillalmostimmediatelybecomeuseless.Stoplaborinanycommunity,andwealthwouldvanishalmostasthejetofafountainvanisheswhentheflowofwaterisshutoff.Letlaboragainexertitself,andwealthwillalmostasimmediatelyreappear.Thishasbeenlongnoticedwherewarorothercalamityhassweptawaywealth,leavingpopulationunimpaired.ThereisnotlesswealthinLondonto-daybecauseofthegreatfireof1666;noryetistherelesswealthinChicagobecauseofthegreatfirein1870,Onthosefire-sweptacreshavearisen,underthehandoflabor,moremagnificentbuildings,filledwithgreaterstocksofgoods;andthestrangerwho,ignorantofthehistoryofthecity,passesalongthosestatelyavenueswouldnotdreamthatafewyearsagoalllaysoblackandbare.Thesameprinciplethatwealthisconstantlyre-created—isobviousineverynewcity.Giventhesamepopulationandthesameefficiencyoflabor,andthetownofyesterdaywillpossessandenjoyasmuchasthetownfoundedbytheRomans.NoonewhohasseenMelbourneorSanFranciscocandoubtthatifthepopulationofEnglandweretransportedtoNewZealand,leavingallaccumulatedwealthbehind,NewZealandwouldsoonbeasrichasEnglandisnow;or,conversely,thatifthepopulationofEnglandwerereducedtothesparsenessofthepresentpopulationofNewZealand,inspiteofaccumulatedwealth,theywouldsoonbeaspoor.Accumulatedwealthseemstoplayjustaboutsuchapartinrelationtothesocialorganismasaccumulatednutrimentdoestothephysicalorganism.Someaccumulatedwealthisnecessary,andtoacertainextentitmaybedrawnuponinexigencies;butthewealthproducedbypastgenerationscannomoreaccountfortheconsumptionofthepresentthanthedinnersheatelastyearcansupplyamanwithpresentstrength.

Butwithouttheseconsiderations,whichIalludetomorefortheirgeneral

thanfortheirspecialbearing,itisevidentthatsuperioraccumulationsofwealthcanaccountforgreaterconsumptionofwealthonlyincaseswhereaccumulatedwealthisdecreasing,andthatwhereverthevolumeofaccumulatedwealthismaintained,andevenmoreobviouslywhereitisincreasing,agreaterconsumptionofwealthmustimplyagreaterproductionofwealth.Now,whetherwecomparedifferentcommunitieswitheachother,orthesamecommunityatdifferenttimes,itisobviousthattheprogressivestate,whichismarkedbyincreaseofpopulation,isalsomarkedbyanincreasedconsumptionandanincreasedaccumulationofwealth,notmerelyintheaggregate,butpercapita.Andhence,increaseofpopulation,sofarasithasyetanywheregone,doesnotmeanareduction,butanincreaseintheaverageproductionofwealth.

Andthereasonofthisisobvious.For,eveniftheincreaseofpopulationdoesreducethepowerofthenaturalfactorofwealth,bycompellingaresorttopoorersoils,etc.,ityetsovastlyincreasesthepowerofthehumanfactorasmorethantocompensate.Twentymenworkingtogetherwill,wherenatureisniggardly,producemorethantwentytimesthewealththatonemancanproducewherenatureismostbountiful.Thedenserthepopulationthemoreminutebecomesthesubdivisionoflabor,thegreatertheeconomiesofproductionanddistribution,and,hence,theveryreverseoftheMalthusiandoctrineistrue;and,withinthelimitsinwhichwehavereasontosupposeincreasewouldstillgoon,inanygivenstateofcivilizationagreaternumberofpeoplecanproducealargerproportionateamountofwealth,andmorefullysupplytheirwants,thancanasmallernumber.

Looksimplyatthefacts.Cananythingbeclearerthanthatthecauseofthepovertywhichfestersinthecentersofcivilizationisnotintheweaknessoftheproductiveforces?Incountrieswherepovertyisdeepest,theforcesofproductionareevidentlystrongenough,iffullyemployed,toprovideforthelowestnotmerelycomfortbutluxury.Theindustrialparalysis,thecommercialdepressionwhichcursesthecivilizedworldto-day,evidentlyspringsfromnolackofproductivepower.Whateverbethe

trouble,itisclearlynotinthewantofabilitytoproducewealth.

Itisthisveryfact—thatwantappearswhereproductivepowerisgreatestandtheproductionofwealthislargest—thatconstitutestheenigmawhichperplexesthecivilizedworld,andwhichwearetryingtounravel.EvidentlytheMalthusiantheory,whichattributeswanttothedecreaseofproductivepower,willnotexplainit.Thattheoryisutterlyinconsistentwithallthefacts.ItisreallyagratuitousattributiontothelawsofGodofresultswhich,evenfromthisexamination,wemayinferreallyspringfromthemal-adjustmentsofmen—aninferencewhich,asweproceed,willbecomeademonstration.Forwehaveyettofindwhatdoesproducepovertyamidadvancingwealth.

PrinciplesofPoliticalEconomy,”BookI,Chap.XIII,Sec.2.

Therateupto1860was35percent.eachdecade.

[BacktoTableofContents]

BookIIITheLawsofDistribution

ChapterI.TheInquiryNarrowedtotheLawsofDistribution—NecessaryRelationofTheseLawsChapterII.RentandtheLawofRentChapterIII.OfInterestandtheCauseofInterestChapterIV.OfSpuriousCapitalandofProfitsOftenMistakenforInterestChapterV.TheLawofInterestChapterVI.WagesandtheLawofWagesChapterVII.TheCorrelationandCo-ordinationofTheseChapterVIII.TheStaticsoftheProblemThusExplained

Themachinesthatarefirstinventedtoperformanyparticularmovementarealwaysthemostcomplex,andsucceedingartistsgenerallydiscoverthatwithfewerwheels,withfewerprinciplesofmotionthanhadoriginallybeenemployed,thesameeffectsmaybemoreeasilyproduced.Thefirstphilosophicalsystems,inthesamemanner,arealwaysthemostcomplex,andaparticularconnectingchain,orprinciple,isgenerallythoughtnecessarytouniteeverytwoseeminglydisjointedappearances,butitoftenhappensthatonegreatconnectingprincipleisafterwardfoundtobesufficienttobindtogetherallthediscordantphenomenathatoccurinawholespeciesofthings.

—AdamSmith,EssayonthePrinciplesWhichLeadandDirectPhilosophicalInquiries,asIllustratedbytheHistoryofAstronomy.

[BacktoTableofContents]

ChapterITheInquiryNarrowedtotheLawsofDistribution—NecessaryRelationofTheseLaws

Theprecedingexaminationhas,Ithink,conclusivelyshownthattheexplanationcurrentlygiven,inthenameofpoliticaleconomy,oftheproblemweareattemptingtosolve,isnoexplanationatall.

Thatwithmaterialprogresswagesfailtoincrease,butrathertendtodecrease,cannotbeexplainedbythetheorythattheincreaseoflaborersconstantlytendstodivideintosmallerportionsthecapitalsumfromwhichwagesarepaid.For,aswehaveseen,wagesdonotcomefromcapital,butarethedirectproduceoflabor.Eachproductivelaborer,asheworks,createshiswages,andwitheveryadditionallaborerthereisanadditiontothetruewagesfund—anadditiontothecommonstockofwealth,which,generallyspeaking,isconsiderablygreaterthantheamounthedrawsinwages.

Nor,yet,canitbeexplainedbythetheorythatnatureyieldslesstotheincreasingdraftswhichanincreasingpopulationmakeuponher;fortheincreasedefficiencyoflabormakestheprogressivestateastateofcontinuallyincreasingproductionpercapita,andthecountriesofdensestpopulation,otherthingsbeingequal,arealwaysthecountriesofgreatestwealth.

Sofar,wehaveonlyincreasedtheperplexitiesoftheproblem.Wehaveoverthrownatheorywhichdid,insomesortoffashion,explainexistingfacts;butindoingsohaveonlymadeexistingfactsseemmoreinexplicable.Itisasthough,whilethePtolemaictheorywasyetinitsstrength,ithadbeenprovedsimplythatthesunandstarsdonotrevolveabouttheearth.Thephenomenaofdayandnight,andoftheapparentmotionofthecelestialbodies,wouldyetremainunexplained,inevitablytoreinstatetheoldtheoryunlessabetteronetookitsplace.Our

reasoninghasledustotheconclusionthateachproductivelaborerproduceshisownwages,andthatincreaseinthenumberoflaborersshouldincreasethewagesofeach;whereas,theapparentfactsarethattherearemanylaborerswhocannotobtainremunerativeemployment,andthatincreaseinthenumberoflaborersbringsdiminutionofwages.Wehave,inshort,provedthatwagesoughttobehighestwhereinrealitytheyarelowest.

Nevertheless,evenindoingthiswehavemadesomeprogress.Nexttofindingwhatwelookfor,istodiscoverwhereitisuselesstolook.Wehaveatleastnarrowedthefieldofinquiry.Forthis,atleast,isnowclear—thatthecausewhich,inspiteoftheenormousincreaseofproductivepower,confinesthegreatbodyofproducerstotheleastshareoftheproductuponwhichtheywillconsenttolive,isnotthelimitationofcapital,noryetthelimitationofthepowersofnaturewhichrespondtolabor.Asitisnot,therefore,tobefoundinthelawswhichboundtheproductionofwealth,itmustbesoughtinthelawswhichgoverndistribution.Tothemletusturn.

Itwillbenecessarytoreviewinitsmainbranchesthewholesubjectofthedistributionofwealth.Todiscoverthecausewhich,aspopulationincreasesandtheproductiveartsadvance,deepensthepovertyofthelowestclass,wemustfindthelawwhichdetermineswhatpartoftheproduceisdistributedtolaboraswages.Tofindthelawofwages,oratleasttomakesurewhenwehavefoundit,wemustalsodeterminethelawswhichfixthepartoftheproducewhichgoestocapitalandthepartwhichgoestolandowners,forasland,labor,andcapitaljoininproducingwealth,itisbetweenthesethreethattheproducemustbedivided.Whatismeantbytheproduceorproductionofacommunityisthesumofthewealthproducedbythatcommunity—thegeneralfundfromwhich,aslongaspreviouslyexistingstockisnotlessened,allconsumptionmustbemetandallrevenuesdrawn.AsIhavealreadyexplained,productiondoesnotmerelymeanthemakingofthings,butincludestheincreaseofvaluegainedbytransportingorexchanging

things.Thereisaproduceofwealthinapurelycommercialcommunity,asthereisinapurelyagriculturalormanufacturingcommunity;andintheonecase,asintheothers,somepartofthisproducewillgotocapital,someparttolabor,andsomepart,iflandhaveanyvalue,totheownersofland.Asamatteroffact,aportionofthewealthproducedisconstantlygoingtothereplacementofcapital,whichisconstantlyconsumedandconstantlyreplaced.Butitisnotnecessarytotakethisintoaccount,asitiseliminatedbyconsideringcapitalascontinuous,which,inspeakingorthinkingofit,wehabituallydo.Whenwespeakoftheproduce,wemean,therefore,thatpartofthewealthproducedabovewhatisnecessarytoreplacethecapitalconsumedinproduction;andwhenwespeakofinterest,orthereturntocapital,wemeanwhatgoestocapitalafteritsreplacementormaintenance.

Itis,further,amatteroffact,thatineverycommunitywhichhaspassedthemostprimitivestagesomeportionoftheproduceistakenintaxationandconsumedbygovernment.Butitisnotnecessary,inseekingthelawsofdistribution,totakethisintoconsideration.Wemayconsidertaxationeitherasnotexisting,orasbysomuchreducingtheproduce.Andso,too,ofwhatistakenfromtheproducebycertainformsofmonopoly,whichwillbeconsideredinasubsequentchapter(Chap.IV),andwhichexercisepowersanalogoustotaxation.Afterwehavediscoveredthelawsofdistributionwecanthenseewhatbearing,ifany,taxationhasuponthem.

Wemustdiscovertheselawsofdistributionforourselves—or,atleast,twooutofthethree.For,thattheyarenot,atleastasawhole,correctlyapprehendedbythecurrentpoliticaleconomy,maybeseen,irrespectiveofourprecedingexaminationofoneofthem,inanyofthestandardtreatises.

Thisisevident,inthefirstplace,fromtheterminologyemployed.

Inallpolitico-economicworkswearetoldthatthethreefactorsinproductionareland,labor,andcapital,andthatthewholeproduceis

primarilydistributedintothreecorrespondingparts.Threeterms,therefore,areneeded,eachofwhichshallclearlyexpressoneofthesepartstotheexclusionoftheothers.Rent,asdefined,clearlyenoughexpressesthefirstoftheseparts—thatwhichgoestotheownersofland.Wages,asdefined,clearlyenoughexpressesthesecond—thatpartwhichconstitutesthereturntolabor.Butastothethirdterm—thatwhichshouldexpressthereturntocapitalthereisinthestandardworksamostpuzzlingambiguityandconfusion.

Ofwordsincommonuse,thatwhichcomesnearesttoexclusivelyexpressingtheideaofreturnfortheuseofcapital,isinterest,which,ascommonlyused,impliesthereturnfortheuseofcapital,exclusiveofanylaborinitsuseormanagement,andexclusiveofanyrisk,exceptsuchasmaybeinvolvedinthesecurity.Thewordprofits,ascommonlyused,isalmostsynonymouswithrevenue;itmeansagain,anamountreceivedinexcessofanamountexpended,andfrequentlyincludesreceiptsthatareproperlyrent;whileitnearlyalwaysincludesreceiptswhichareproperlywages,aswellascompensationsfortheriskpeculiartothevarioususesofcapital.Unlessextremeviolenceisdonetothemeaningoftheword,itcannot,therefore,beusedinpoliticaleconomytosignifythatshareoftheproducewhichgoestocapital,incontradistinctiontothosepartswhichgotolaborandtolandowners.

Now,allthisisrecognizedinthestandardworksonpoliticaleconomy.AdamSmithwellillustrateshowwagesandcompensationforrisklargelyenterintoprofits,pointingouthowthelargeprofitsofapothecariesandsmallretaildealersareinrealitywagesfortheirlabor,andnotinterestontheircapital;andhowthegreatprofitssometimesmadeinriskybusinesses,suchassmugglingandthelumbertrade,arereallybutcompensationsforrisk,which,inthelongrun,reducethereturnstocapitalsousedtotheordinary,orbelowtheordinary,rate.Similarillustrationsaregiveninmostofthesubsequentworks,whereprofitisformallydefinedinitscommonsense,with,perhaps,theexclusionofrent.Inalltheseworks,thereaderistoldthatprofitsaremadeupofthree

elements—wagesofsuperintendence,compensationforrisk,andinterest,orthereturnfortheuseofcapital.

Thus,neitherinitscommonmeaningnorinthemeaningexpresslyassignedtoitinthecurrentpoliticaleconomy,canprofitshaveanyplaceinthediscussionofthedistributionofwealthbetweenthethreefactorsofproduction,Eitherinitscommonmeaningorinthemeaningexpresslyassignedtoit,totalkaboutthedistributionofwealthintorent,wages,andprofitsisliketalkingofthedivisionofmankindintomen,women,andhumanbeings.

Yetthis,totheutterbewildermentofthereader,iswhatisdoneinallthestandardworks.Afterformallydecomposingprofitsintowagesofsuperintendence,compensationforrisk,andinterest—thenetreturnfortheuseofcapital—theyproceedtotreatofthedistributionofwealthbetweentherentofland,thewagesoflabor,andthePROFITSofcapital.

Idoubtnotthattherearethousandsofmenwhohavevainlypuzzledtheirbrainsoverthisconfusionofterms,andabandonedtheeffortindespair,thinkingthatasthefaultcouldnotbeinsuchgreatthinkers,itmustbeintheirownstupidity.IfitisanyconsolationtosuchmentheymayturntoBuckle’s“HistoryofCivilization,”andseehowamanwhocertainlygotamarvelouslyclearideaofwhatheread,andwhohadreadcarefullytheprincipaleconomistsfromSmithdown,wasinextricablyconfusedbythisjumbleofprofitsandinterest.ForBuckle(Vol.1,Chap.11,andnotes)persistentlyspeaksofthedistributionofwealthintorent,wages,interest,andprofits.

Andthisisnottobewonderedat.For,afterformallydecomposingprofitsintowagesofsuperintendence,insurance,andinterest,theseeconomists,inassigningcauseswhichfixthegeneralrateofprofit,speakofthingswhichevidentlyaffectonlythatpartofprofitswhichtheyhavedenominatedinterest;andthen,inspeakingoftherateofinterest,eithergivethemeaninglessformulaofsupplyanddemand,orspeakofcauses

whichaffectthecompensationforrisk;evidentlyusingthewordinitscommonsense,andnotintheeconomicsensetheyhaveassignedtoit,fromwhichcompensationforriskiseliminated.IfthereaderwilltakeupJohnStuartMill’s“PrinciplesofPoliticalEconomy,”andcomparethechapteronProfits(Book11,Chap.15)withthechapteronInterest(BookIII,Chap.23),hewillseetheconfusionthusarisingexemplifiedinthecaseofthemostlogicalofEnglisheconomists,inamorestrikingmannerthanIwouldliketocharacterize.

Now,suchmenhavenotbeenledintosuchconfusionofthoughtwithoutacause.Ifthey,oneafteranother,havefollowedDr.AdamSmith,asboysplay“followmyleader,”jumpingwherehejumped,andfallingwherehefell,ithasbeenthattherewasafencewherehejumpedandaholewherehefell.

Thedifficultyfromwhichthisconfusionhassprungisinthepreacceptedtheoryofwages.ForreasonswhichIhavebeforeassigned,ithasseemedtothemaself-evidenttruththatthewagesofcertainclassesoflaborersdependedupontheratiobetweencapitalandthenumberoflaborers.Buttherearecertainkindsofrewardforexertiontowhichthistheoryevidentlywillnotapply,sothetermwageshasinusebeencontractedtoincludeonlywagesInthenarrowcommonsense.Thisbeingthecase,iftheterminterestwereused,asconsistentlywiththeirdefinitionsitshouldhavebeenused,torepresentthethirdpartofthedivisionoftheproduce,allrewardsofpersonalexertion,savethoseofwhatarecommonlycalledwage-workers,wouldclearlyhavebeenleftout.Butbytreatingthedivisionofwealthasbetweenrent,wages,andprofits,insteadofbetweenrent,wagesandInterest,thisdifficultyisglossedover,allwageswhichwillnotfallunderthepreacceptedlawofwagesbeingvaguelygroupedunderprofits,aswagesofsuperintendence.

Toreadcarefullywhateconomistssayaboutthedistributionofwealthistoseethat,thoughtheycorrectlydefineit,wages,astheyuseitinthisconnection,iswhatlogicianswouldcallanundistributedterm—itdoes

notmeanallwages,butonlysomewages—viz.,thewagesofmanuallaborpaidbyanemployer.Sootherwagesarethrownoverwiththereturntocapital,andincludedunderthetermprofits,andanycleardistinctionbetweenthereturnstocapitalandthereturnstohumanexertionthusavoided.Thefactisthatthecurrentpoliticaleconomyfailstogiveanyclearandconsistentaccountofthedistributionofwealth.Thelawofrentisclearlystated,butitstandsunrelated.Therestisaconfusedandincoherentjumble.

Theveryarrangementoftheseworksshowsthisconfusionandinconclusivenessofthought.Innopolitico-economictreatisethatIknowofaretheselawsofdistributionbroughttogether,sothatthereadercantaketheminataglanceandrecognizetheirrelationtoeachother;butwhatissaidabouteachoneisenvelopedinamassofpoliticalandmoralreflectionsanddissertations.Andthereasonisnotfartoseek.Tobringtogetherthethreelawsofdistributionastheyarenowtaught,istoshowataglancethattheylacknecessaryrelation.

Thelawsofthedistributionofwealthareobviouslylawsofproportion,andmustbesorelatedtoeachotherthatanytwobeinggiventhethirdmaybeinferred.Fortosaythatoneofthethreepartsofawholeisincreasedordecreased,istosaythatoneorbothoftheotherpartsis,reversely,decreasedorincreased.IfTom,Dick,andHarryarepartnersinbusiness,theagreementwhichfixestheshareofoneintheprofitsmustatthesametimefixeithertheseparateorthejointsharesoftheothertwo.TofixTom’sshareatfortypercent.istoleavebutsixtypercent.tobedividedbetweenDickandHarry.TofixDick’sshareatfortypercent.andHarry’sshareatthirty-fivepercent.istofixTom’sshareattwenty-fivepercent.

Butbetweenthelawsofthedistributionofwealth,aslaiddowninthestandardworks,thereisnosuchrelation.Ifwefishthemoutandbringthemtogether,wefindthemtobeasfollows:

Wagesaredeterminedbytheratiobetweentheamountofcapitaldevotedtothepaymentandsubsistenceoflaborandthenumberoflaborersseekingemployment.

Rentisdeterminedbythemarginofcultivation;alllandsyieldingasrentthatpartoftheirproducewhichexceedswhatanequalapplicationoflaborandcapitalcouldprocurefromthepoorestlandinuse.

Interestisdeterminedbytheequationbetweenthedemandsofborrowersandthesupplyofcapitalofferedbylenders.Or,ifwetakewhatisgivenasthelawofprofits,itisdeterminedbywages,fallingaswagesriseandrisingaswagesfall—or,tousethephraseofMill,bythecostoflabortothecapitalist.

Thebringingtogetherofthesecurrentstatementsofthelawsofthedistributionofwealthshowsataglancethattheylacktherelationtoeachotherwhichthetruelawsofdistributionmusthave.Theydonotcorrelateandco-ordinate.Hence,atleasttwoofthesethreelawsareeitherwronglyapprehendedorwronglystated.Thistallieswithwhatwehavealreadyseen,thatthecurrentapprehensionofthelawofwages,and,inferentially,ofthelawofinterest,willnotbearexamination.Letus,then,seekthetruelawsofthedistributionoftheproduceoflaborintowages,rent,andinterest.Theproofthatwehavefoundthemwillbeintheircorrelation—thattheymeet,andrelate,andmutuallyboundeachother.

Withprofitsthisinquiryhasmanifestlynothingtodo.Wewanttofindwhatitisthatdeterminesthedivisionoftheirjointproducebetweenland,labor,andcapital;andprofitsisnotatermthatrefersexclusivelytoanyoneofthesethreedivisions.Ofthethreepartsintowhichprofitsaredividedbypoliticaleconomists—namely,compensationforrisk,wagesofsuperintendence,andreturnfortheuseofcapital—thelatterfallsundertheterminterest,whichincludesallthereturnsfortheuseofcapital,andexcludeseverythingelse;wagesofsuperintendencefallsunderthetermwages,whichincludesallreturnsforhumanexertion,and

excludeseverythingelse;andcompensationforriskhasnoplacewhatever,asriskiseliminatedwhenallthetransactionsofacommunityaretakentogether.Ishall,therefore,consistentlywiththedefinitionsofpoliticaleconomists,usetheterminterestassignifyingthatpartoftheproducewhichgoestocapital.

Torecapitulate:

Land,labor,andcapitalarethefactorsofproduction.Thetermlandincludesallnaturalopportunitiesorforces;thetermlabor,allhumanexertion;andthetermcapital,allwealthusedtoproducemorewealth.Inreturnstothesethreefactorsisthewholeproducedistributed.Thatpartwhichgoestolandownersaspaymentfortheuseofnaturalopportunitiesiscalledrent;thatpartwhichconstitutestherewardofhumanexertioniscalledwages;andthatpartwhichconstitutesthereturnfortheuseofcapitaliscalledinterest.Thesetermsmutuallyexcludeeachother.Theincomeofanyindividualmaybemadeupfromanyone,two,orallthreeofthesesources;butintheefforttodiscoverthelawsofdistributionwemustkeepthemseparate.

Letmepremisetheinquirywhichweareabouttoundertakebysayingthatthemiscarriageofpoliticaleconomy,whichIthinkhasnowbeenabundantlyshown,can,itseemstome,betracedtotheadoptionofanerroneousstandpoint.Livingandmakingtheirobservationsinastateofsocietyinwhichacapitalistgenerallyrentslandandhireslabor,andthusseemstobetheundertakerorfirstmoverinproduction,thegreatcultivatorsofthesciencehavebeenledtolookuponcapitalastheprimefactorinproduction,landasitsinstrument,andlaborasitsagentortool.Thisisapparentoneverypage—intheformandcourseoftheirreasoning,inthecharacteroftheirillustrations,andevenintheirchoiceofterms.Everywherecapitalisthestartingpoint,thecapitalistthecentralfigure.SofardoesthisgothatbothSmithandRicardousetheterm“naturalwages”toexpresstheminimumuponwhichlaborerscanlive;whereas,unlessinjusticeisnatural,allthatthelaborerproduces

shouldratherbeheldashisnaturalwages.Thishabitoflookinguponcapitalastheemployeroflaborhasledbothtothetheorythatwagesdependupontherelativeabundanceofcapital,andtothetheorythatinterestvariesinverselywithwages,whileithasledawayfromtruthsthatbutforthishabitwouldhavebeenapparent.Inshort,themisstepwhich,sofarasthegreatlawsofdistributionareconcerned,hasledpoliticaleconomyintothejungles,insteadofuponthemountaintops,wastakenwhenAdamSmith,inhisfirstbook,leftthestandpointindicatedinthesentence,“Theproduceoflaborconstitutesthenaturalrecompenseorwagesoflabor,”totakethatinwhichcapitalisconsideredasemployinglaborandpayingwages.

Butwhenweconsidertheoriginandnaturalsequenceofthings,thisorderisreversed;andcapitalinsteadoffirstislast;insteadofbeingtheemployeroflabor,itisinrealityemployedbylabor.Theremustbelandbeforelaborcanbeexerted,andlabormustbeexertedbeforecapitalcanbeproduced.Capitalisaresultoflabor,andisusedbylabortoassistitinfurtherproduction.Laboristheactiveandinitialforce,andlaboristhereforetheemployerofcapital.Laborcanbeexertedonlyuponland,anditisfromlandthatthematterwhichittransmutesintowealthmustbedrawn.Landthereforeistheconditionprecedent,thefieldandmaterialoflabor.Thenaturalorderisland,labor,capital;and,insteadofstartingfromcapitalasourinitialpoint,weshouldstartfromland.

Thereisanotherthingtobeobserved.Capitalisnotanecessaryfactorinproduction.Laborexerteduponlandcanproducewealthwithouttheaidofcapital,andinthenecessarygenesisofthingsmustsoproducewealthbeforecapitalcanexist.Thereforethelawofrentandthelawofwagesmustcorrelateeachotherandformaperfectwholewithoutreferencetothelawofcapital,asotherwisetheselawswouldnotfitthecaseswhichcanreadilybeimagined,andwhichtosomedegreeactuallyexist,inwhichcapitaltakesnopartinproduction.Andascapitalis,asisoftensaid,butstored-uplabor,itisbutaformoflabor,asubdivisionofthegeneraltermlabor;anditslawmustbesubordinateto,andindependently

correlatewith,thelawofwages,soastofitcasesinwhichthewholeproduceisdividedbetweenlaborandcapital,withoutanydeductionforrent.Toresorttotheillustrationbeforeused:Thedivisionoftheproducebetweenland,laborandcapitalmustbeasitwouldbebetweenTom,Dick,andHarry,ifTomandDickweretheoriginalpartners,andHarrycameinbutasanassistanttoandsharerwithDick.

[BacktoTableofContents]

ChapterIIRentandtheLawofRent

Thetermrent,initseconomicsense—thatis,whenused,asIamusingit,todistinguishthatpartoftheproducewhichaccruestotheownersoflandorothernaturalcapabilitiesbyvirtueoftheirownership—differsinmeaningfromthewordrentascommonlyused.Insomerespectsthiseconomicmeaningisnarrowerthanthecommonmeaning;inotherrespectsitiswider.

Itisnarrowerinthis:Incommonspeech,weapplythewordrenttopaymentsfortheuseofbuildings,machinery,fixtures,etc.,aswellastopaymentsfortheuseoflandorothernaturalcapabilities;andinspeakingoftherentofahouseortherentofafarm,wedonotseparatethepricefortheuseoftheimprovementsfromthepricefortheuseofthebareland.Butintheeconomicmeaningofrent,paymentsfortheuseofanyoftheproductsofhumanexertionareexcluded,andofthelumpedpaymentsfortheuseofhouses,farms,etc.,onlythatpartisrentwhichconstitutestheconsiderationfortheuseoftheland—thatpartpaidfortheuseofbuildingsorotherimprovementsbeingproperlyinterest,asitisaconsiderationfortheuseofcapital.

Itiswiderinthis:Incommonspeechwespeakofrentonlywhenowneranduseraredistinctpersons.Butintheeconomicsensethereisalsorentwherethesamepersonisbothowneranduser.Whereowneranduserarethusthesameperson,whateverpartofhisincomehemightobtainbylettingthelandtoanotherisrent,whilethereturnforhislaborandcapitalarethatpartofhisincomewhichtheywouldyieldhimdidhehireinsteadofowningtheland.Rentisalsoexpressedinasellingprice.Whenlandispurchased,thepaymentwhichismadefortheownership,orrighttoperpetualuse,isrentcommutedorcapitalized.IfIbuylandforasmallpriceandholdituntilIcansellitforalargeprice,Ihavebecome

rich,notbywagesformylabororbyinterestuponmycapital,butbytheincreaseofrent.Rent,inshort,istheshareinthewealthproducedwhichtheexclusiverighttotheuseofnaturalcapabilitiesgivestotheowner.Whereverlandhasanexchangevaluethereisrentintheeconomicmeaningoftheterm.Whereverlandhavingavalueisused,eitherbyownerorhirerthereisrentactual;whereveritisnotused,butstillhasavalue,thereisrentpotential.Itisthiscapacityofyieldingrentwhichgivesvaluetoland.Untilitsownershipwillconfersomeadvantage,landhasnovalue.

Thusrentorlandvaluedoesnotarisefromtheproductivenessorutilityofland.Itinnowiserepresentsanyhelporadvantagegiventoproduction,butsimplythepowerofsecuringapartoftheresultsofproduction.Nomatterwhatareitscapabilities,landcanyieldnorentandhavenovalueuntilsomeoneiswillingtogivelaborortheresultsoflaborfortheprivilegeofusingit;andwhatanyonewillthusgivedependsnotuponthecapacityoftheland,butuponitscapacityascomparedwiththatoflandthatcanbehadfornothing.Imayhaveveryrichland,butitwillyieldnorentandhavenovaluesolongasthereisotherlandasgoodtobehadwithoutcost.Butwhenthisotherlandisappropriated,andthebestlandtobehadfornothingisinferior,eitherinfertility,situation,orotherquality,mylandwillbegintohaveavalueandyieldrent.Andthoughtheproductivenessofmylandmaydecrease,yetiftheproductivenessofthelandtobehadwithoutchargedecreasesingreaterproportion,therentIcanget,andconsequentlythevalueofmyland,willsteadilyincrease.Rent,inshort,isthepriceofmonopoly,arisingfromthereductiontoindividualownershipofnaturalelementswhichhumanexertioncanneitherproducenorincrease.

Ifonemanownedallthelandaccessibletoanycommunity,hecould,ofcourse,demandanypriceorconditionforitsusethathesawfit;and,aslongashisownershipwasacknowledged,theothermembersofthecommunitywouldhavebutdeathoremigrationasthealternativetosubmissiontohisterms.Thishasbeenthecaseinmanycommunities;

butinthemodernformofsociety,theland,thoughgenerallyreducedtoindividualownership,isinthehandsoftoomanydifferentpersonstopermitthepricewhichcanbeobtainedforitsusetobefixedbymerecapriceordesire.Whileeachindividualownertriestogetallhecan,thereisalimittowhathecanget,whichconstitutesthemarketpriceormarketrentoftheland,andwhichvarieswithdifferentlandsandatdifferenttimes.Thelaw,orrelation,which,underthesecircumstancesoffreecompetitionamongallparties(theconditionwhichintracingouttheprinciplesofpoliticaleconomyisalwaystobeassumed),determineswhatrentorpricecanbegotbytheowner,isstyledthelawofrent.Thisfixedwithcertainty,wehavemorethanastartingpointfromwhichthelawswhichregulatewagesandinterestmaybetraced.For,asthedistributionofwealthisadivision,inascertainingwhatfixestheshareoftheproducewhichgoesasrent,wealsoascertainwhatfixesthesharewhichisleftforwages,wherethereisnoco-operationofcapital;andwhatfixesthejointshareleftforwagesandinterest,wherecapitaldoesco-operateinproduction.

Fortunately,astothelawofrentthereisnonecessityfordiscussion.Authorityherecoincideswithcommonsense,andtheaccepteddictumofthecurrentpoliticaleconomyhastheself-evidentcharacterofageometricaxiom.Thisacceptedlawofrent,whichJohnStuartMilldenominatestheponsasinorumofpoliticaleconomy,issometimesstyled“Ricardo’slawofrent,”fromthefactthat,althoughnotthefirsttoannounceit,hefirstbroughtitprominentlyintonotice.Itis:

Therentoflandisdeterminedbytheexcessofitsproduceoverthatwhichthesameapplicationcansecurefromtheleastproductivelandinuse.

Thislaw,whichofcourseappliestolandusedforotherpurposesthanagriculture,andtoallnaturalagencies,suchasmines,fisheries,etc.,hasbeenexhaustivelyexplainedandillustratedbyalltheleadingeconomistssinceRicardo.Butitsmerestatementhasalltheforceofaself-evident

proposition,foritisclearthattheeffectofcompetitionistomakethelowestrewardforwhichlaborandcapitalwillengageinproduction,thehighestthattheycanclaim;andhencetoenabletheownerofmoreproductivelandtoappropriateinrentallthereturnabovethatrequiredtorecompenselaborandcapitalattheordinaryrate—thatistosay,whattheycanobtainupontheleastproductivelandinuse,orattheleastproductivepoint,where,ofcourse,norentispaid.

Perhapsitmayconducetoafullerunderstandingofthelawofrenttoputitinthisform:Theownershipofanaturalagentofproductionwillgivethepowerofappropriatingsomuchofthewealthproducedbytheexertionoflaborandcapitaluponitasexceedsthereturnwhichthesameapplicationoflaborandcapitalcouldsecureintheleastproductiveoccupationinwhichtheyfreelyengage.

This,however,amountstopreciselythesamething,forthereisnooccupationinwhichlaborandcapitalcanengagewhichdoesnotrequiretheuseofland;and,furthermore,thecultivationorotheruseoflandwillalwaysbecarriedtoaslowapointofremuneration,allthingsconsidered,asisfreelyacceptedinanyotherpursuit.Suppose,forinstance,acommunityinwhichpartofthelaborandcapitalisdevotedtoagricultureandparttomanufactures.Thepoorestlandcultivatedyieldsanaveragereturnwhichwewillcall20,and20thereforewillbetheaveragereturntolaborandcapital,aswellinmanufacturesasinagriculture.Supposethatfromsomepermanentcausethereturninmanufacturesisnowreducedto15.Clearly,thelaborandcapitalengagedinmanufactureswillturntoagriculture;andtheprocesswillnotstopuntil,eitherbytheextensionofcultivationtoinferiorlandsortoinferiorpointsonthesameland,orbyanincreaseintherelativevalueofmanufacturedproducts,owingtothediminutionofproduction—or,asamatteroffact,bybothprocesses—theyieldtolaborandcapitalinbothpursuitshas,allthingsconsidered,beenbroughtagaintothesamelevel,sothatwhateverbethefinalpointofproductivenessatwhichmanufacturesarestillcarriedon,whetheritbe18or17or16,cultivationwillalsobeextendedtothat

point.And,thus,tosaythatrentwillbetheexcessinproductivenessovertheyieldatthemargin,orlowestpoint,ofcultivation,isthesamethingastosaythatitwillbetheexcessofproduceoverwhatthesameamountoflaborandcapitalobtainsintheleastremunerativeoccupation.

Thelawofrentis,infact,butadeductionfromthelawofcompetition,andamountssimplytotheassertionthataswagesandinteresttendtoacommonlevel,allthatpartofthegeneralproductionofwealthwhichexceedswhatthelaborandcapitalemployedcouldhavesecuredforthemselves,ifappliedtothepoorestnaturalagentinuse,willgotolandownersintheshapeofrent.Itrests,inthelastanalysis,uponthefundamentalprinciple,whichistopoliticaleconomywhattheattractionofgravitationistophysics—thatmenwillseektogratifytheirdesireswiththeleastexertion.

This,then,isthelawofrent.AlthoughmanystandardtreatisesfollowtoomuchtheexampleofRicardo,whoseemstoviewitmerelyinitsrelationtoagriculture,andinseveralplacesspeaksofmanufacturesyieldingnorent(when,intruth,manufacturesandexchangeyieldthehighestrents,asisevincedbythegreatervalueoflandinmanufacturingandcommercialcities),thushidingthefullimportanceofthelaw,yet,eversincethetimeofRicardo,thelawitselfhasbeenclearlyapprehendedandfullyrecognized.Butnotsoitscorollaries.Plainastheyare,theaccepteddoctrineofwages(backedandfortifiednotonlyashasbeenhithertoexplained,butbyconsiderationswhoseenormousweightwillbeseenwhenthelogicalconclusiontowardwhichwearetendingisreached)hashithertopreventedtheirrecognition.Yet,isitnotasplainasthesimplestgeometricaldemonstration,thatthecorollaryofthelawofrentisthelawofwages,wherethedivisionoftheproduceissimplybetweenrentandwages;orthelawofwagesandinteresttakentogether,wherethedivisionisintorent,wages,andinterest?Statedreversely,thelawofrentisnecessarilythelawofwagesandinteresttakentogether,foritistheassertion,thatnomatterwhattheproductionwhichresultsfromtheapplicationoflaborandcapital,thesetwofactorswillreceiveinwages

andinterestonlysuchpartoftheproduceastheycouldhaveproducedonlandfreetothemwithoutthepaymentofrent—thatis,theleastproductivelandorpointinuse.For,if,oftheproduce,allovertheamountwhichlaborandcapitalcouldsecurefromlandforwhichnorentispaidmustgotolandownersasrent,thenallthatcanbeclaimedbylaborandcapitalaswagesandinterestistheamountwhichtheycouldhavesecuredfromlandyieldingnorent.

Ortoputitinalgebraicform:

AsProduceaRentCWagesCInterest,Therefore,Produce蜢RentaWagesCInterest.

Thuswagesandinterestdonotdependupontheproduceoflaborandcapital,butuponwhatisleftafterrentistakenout;or,upontheproducewhichtheycouldobtainwithoutpayingrent—thatis,fromthepoorestlandinuse.Andhence,nomatterwhatbetheincreaseinproductivepower,iftheincreaseinrentkeepspacewithit,neitherwagesnorinterestcanincrease.

Themomentthissimplerelationisrecognized,afloodoflightstreamsinuponwhatwasbeforeinexplicable,andseeminglydiscordantfactsrangethemselvesunderanobviouslaw.Theincreaseofrentwhichgoesoninprogressivecountriesisatonceseentobethekeywhichexplainswhywagesandinterestfailtoincreasewithincreaseofproductivepower.Forthewealthproducedineverycommunityisdividedintotwopartsbywhatmaybecalledtherentline,whichisfixedbythemarginofcultivation,orthereturnwhichlaborandcapitalcouldobtainfromsuchnaturalopportunitiesasarefreetothemwithoutthepaymentofrent.Fromthepartoftheproducebelowthislinewagesandinterestmustbepaid.Allthatisabovegoestotheownersofland.Thus,wherethevalueoflandislow,theremaybeasmallproductionofwealth,andyetahighrateofwagesandinterest,asweseeinnewcountries.And,wherethevalueoflandishigh,theremaybeaverylargeproductionofwealth,and

yetalowrateofwagesandinterest,asweseeinoldcountries.And,whereproductivepowerincreases,asitisincreasinginallprogressivecountries,wagesandinterestwillbeaffected,notbytheincrease,butbythemannerinwhichrentisaffected.Ifthevalueoflandincreasesproportionately,alltheincreasedproductionwillbeswallowedupbyrent,andwagesandinterestwillremainasbefore.Ifthevalueoflandincreasesingreaterratiothanproductivepower,rentwillswallowupevenmorethantheincrease;andwhiletheproduceoflaborandcapitalwillbemuchlarger,wagesandinterestwillfall.Itisonlywhenthevalueoflandfailstoincreaseasrapidlyasproductivepower,thatwagesandinterestcanincreasewiththeincreaseofproductivepower.Allthisisexemplifiedinactualfact.

InspeakingofthevalueoflandIuseandshallusethewordsasreferringtothevalueofthebareland.WhenIwishtospeakofthevalueoflandandimprovementsIshallusethosewords.

Idonotmeantosaythattheacceptedlawofrenthasneverbeendisputed.Inallthenonsensethatinthepresentdisjointedconditionofthesciencehasbeenprintedaspoliticaleconomy,itwouldbehardtofindanythingthathasnotbeendisputed.ButImeantosaythatithasthesanctionofalleconomicwriterswhoarereallytoberegardedasauthority.AsJohnStuartMillsays(BookII,Chap.XVI),“therearefewpersonswhohaverefusedtheirassenttoit,exceptfromnothavingthoroughlyunderstoodit.Thelooseandinaccuratewayinwhichitisoftenapprehendedbythosewhoaffecttorefuteitisveryremarkable.”Anobservationwhichhasreceivedmanylaterexemplifications.

AccordingtoMcCullochthelawofrentwasfirststatedinapamphletbyDr.JamesAndersonofEdinburghin1777,andsimultaneouslyinthebeginningofthiscenturybySirEdwardWest,Mr.Malthus,andMr.Ricardo.

Buckle(Chap.11,“HistoryofCivilization”)recognizesthenecessary

relationbetweenrent,interest,andwages,butevidentlyneverworkeditout.

[BacktoTableofContents]

ChapterIIIOfInterestandtheCauseofInterest

Havingmadesureofthelawofrent,wehaveobtainedasitsnecessarycorollarythelawofwages,wherethedivisionisbetweenrentandwages;andthelawofwagesandinteresttakentogether,wherethedivisionisbetweenthethreefactors.Whatproportionoftheproduceistakenasrentmustdeterminewhatproportionisleftforwages,ifbutlandandlaborareconcerned;ortobedividedbetweenwagesandinterest,ifcapitaljoinsintheproduction.

Butwithoutreferencetothisdeduction,letusseekeachoftheselawsseparatelyandindependently.If,whenobtainedinthisway,wefindthattheycorrelate,ourconclusionswillhavethehighestcertainty.

And,inasmuchasthediscoveryofthelawofwagesistheultimatepurposeofourinquiry,letustakeupfirstthesubjectofinterest.

Ihavealreadyreferredtothedifferenceinmeaningbetweenthetermsprofitsandinterest.Itmaybeworthwhile,further,tosaythatinterest,asanabstractterminthedistributionofwealth,differsinmeaningfromthewordascommonlyused,inthis:Thatitincludesallreturnsfortheuseofcapital,andnotmerelythosethatpassfromborrowertolender;andthatitexcludescompensationforrisk,whichformssogreatapartofwhatiscommonlycalledinterest.Compensationforriskisevidentlyonlyanequalizationofreturnbetweendifferentemploymentsofcapital.Whatwewanttofindis,whatfixesthegeneralrateofinterestproper?Thedifferentratesofcompensationforriskaddedtothiswillgivethecurrentratesofcommercialinterest.

Now,itisevidentthatthegreatestdifferencesinwhatisordinarilycalledinterestareduetodifferencesinrisk;butitisalsoevidentthatbetween

differentcountriesanddifferenttimestherearealsoconsiderablevariationsintherateofinterestproper.InCaliforniaatonetimetwopercent.amonthwouldnothavebeenconsideredextravagantinterestonsecurityonwhichloanscouldnowbeeffectedatsevenoreightpercent.perannum,andthoughsomepartofthedifferencemaybeduetoanincreasedsenseofgeneralstability,thegreaterpartisevidentlyduetosomeothergeneralcause.IntheUnitedStatesgenerallytherateofinteresthasbeenhigherthaninEngland;andinthenewerStatesoftheUnionhigherthanintheolderStates;andthetendencyofinteresttosinkassocietyprogressesiswellmarkedandhaslongbeennoticed.Whatisthelawwhichwillbindallthesevariationstogetherandexhibittheircause?

Itisnotworthwhiletodwellmorethanhashithertoincidentallybeendoneuponthefailureofthecurrentpoliticaleconomytodeterminethetruelawofinterest.Itsspeculationsuponthissubjecthavenotthedefinitenessandcoherencywhichhaveenabledtheaccepteddoctrineofwagestowithstandtheevidenceoffact,anddonotrequirethesameelaboratereview.Thattheyruncountertothefactsisevident.Thatinterestdoesnotdependontheproductivenessoflaborandcapitalisprovedbythegeneralfactthatwherelaborandcapitalaremostproductiveinterestislowest.Thatitdoesnotdependreverselyuponwages(orthecostoflabor),loweringaswagesrise,andincreasingaswagesfall,isprovedbythegeneralfactthatinterestishighwhenandwherewagesarehigh,andlowwhenandwherewagesarelow.

Letusbeginatthebeginning.Thenatureandfunctionsofcapitalhavealreadybeensufficientlyshown,butevenattheriskofsomethinglikeadigression,letusendeavortoascertainthecauseofinterestbeforeconsideringitslaw.Forinadditiontoaidingourinquirybygivingusafirmerandclearergraspofthesubjectnowinhand,itmayleadtoconclusionswhosepracticalimportancewillbehereafterapparent.

Whatisthereasonandjustificationofinterest?Whyshouldtheborrower

paybacktothelendermorethanhereceived?Thesequestionsareworthanswering,notmerelyfromtheirspeculative,butfromtheirpracticalimportance.Thefeelingthatinterestistherobberyofindustryiswidespreadandgrowing,andonbothsidesoftheAtlanticshowsitselfmoreandmoreinpopularliteratureandinpopularmovements.Theexpoundersofthecurrentpoliticaleconomysaythatthereisnoconflictbetweenlaborandcapital,andopposeasinjurioustolabor,aswellastocapital,allschemesforrestrictingtherewardwhichcapitalobtains;yetinthesameworksthedoctrineislaiddownthatwagesandinterestbeartoeachotheraninverserelation,andthatinterestwillbeloworhighaswagesarehighorlow.Clearly,then,ifthisdoctrineiscorrect,theonlyobjectionthatfromthestandpointofthelaborercanbelogicallymadetoanyschemeforthereductionofinterestisthatitwillnotwork,whichismanifestlyveryweakgroundwhileideasoftheomnipotenceoflegislaturesareyetsowidespread;andthoughsuchanobjectionmayleadtotheabandonmentofanyoneparticularscheme,itwillnotpreventthesearchforanother.

Whyshouldinterestbe?Interest,wearetold,inallthestandardworks,istherewardofabstinence.But,manifestly,thisdoesnotsufficientlyaccountforit.Abstinenceisnotanactive,butapassivequality;itisnotadoing—itissimplyanotdoing.Abstinenceinitselfproducesnothing.Why,then,shouldanypartofwhatisproducedbeclaimedforit?IfIhaveasumofmoneywhichIlockupforayear,IhaveexercisedasmuchabstinenceasthoughIhadloanedit.Yet,thoughinthelattercaseIwillexpectittobereturnedtomewithanadditionalsumbywayofinterest,intheformerIwillhavebutthesamesum,andnoincrease.Buttheabstinenceisthesame.IfitbesaidthatinlendingitIdotheborroweraservice,itmayberepliedthathealsodoesmeaserviceinkeepingitsafely—aservicethatundersomeconditionsmaybeveryvaluable,andforwhichIwouldwillinglypay,ratherthannothaveit;andaservicewhich,astosomeformsofcapital,maybeevenmoreobviousthanastomoney.Fortherearemanyformsofcapitalwhichwillnotkeep,butmustbeconstantlyrenewed;andmanywhichareoneroustomaintainifone

hasnoimmediateuseforthem.So,iftheaccumulatorofcapitalhelpstheuserofcapitalbyloaningittohim,doesnottheuserdischargethedebtinfullwhenhehandsitback?Isnotthesecurepreservation,themaintenance,there-creationofcapital,acompleteoffsettotheuse?Accumulationistheendandaimofabstinence.Abstinencecangonofurtherandaccomplishnomore;norofitselfcanitevendothis.Ifweweremerelytoabstainfromusingit,howmuchwealthwoulddisappearinayear!Andhowlittlewouldbeleftattheendoftwoyears!Hence,ifmoreisdemandedforabstinencethanthesafereturnofcapital,isnotlaborwronged?Suchideasastheseunderliethewidespreadopinionthatinterestcanaccrueonlyattheexpenseoflabor,andisinfactarobberyoflaborwhichinasocialconditionbasedonjusticewouldbeabolished.

Theattemptstorefutetheseviewsdonotappeartomealwayssuccessful.Forinstance,asitillustratestheusualreasoning,takeBastiat’soft-quotedillustrationoftheplane.Onecarpenter,James,attheexpenseoftendays’labor,makeshimselfaplane,whichwilllastinusefor290ofthe300workingdaysoftheyear.William,anothercarpenter,proposestoborrowtheplaneforayear,offeringtogivebackattheendofthattime,whentheplanewillbewornout,anewplaneequallyasgood.Jamesobjectstolendingtheplaneontheseterms,urgingthatifhemerelygetsbackaplanehewillhavenothingtocompensatehimforthelossoftheadvantagewhichtheuseoftheplaneduringtheyearwouldgivehim.William,admittingthis,agreesnotmerelytoreturnaplane,but,inaddition,togiveJamesanewplank.Theagreementiscarriedouttomutualsatisfaction.Theplaneisusedupduringtheyear,butattheendoftheyearJamesreceivesasgoodaone,andaplankinaddition.Helendsthenewplaneagainandagain,untilfinallyitpassesintothebandsofhisson,“whostillcontinuestolendit,”receivingaplankeachtime.Thisplank,whichrepresentsinterest,issaidtobeanaturalandequitableremuneration,asbygivingitinreturnfortheuseoftheplane,William“obtainsthepowerwhichexistsinthetooltoincreasetheproductivenessoflabor,”andisnoworseoffthanhewouldhavebeenhadhenotborrowedtheplane;whileJamesobtainsnomorethanhewouldhavehad

ifhehadretainedandusedtheplaneinsteadoflendingit.

Isthisreallyso?ItwillbeobservedthatitisnotaffirmedthatJamescouldmaketheplaneandWilliamcouldnot,forthatwouldbetomaketheplanktherewardofsuperiorskill.ItisonlythatJameshadabstainedfromconsumingtheresultofhislaboruntilhehadaccumulateditintheformofaplane—whichistheessentialideaofcapital.

Now,ifJameshadnotlenttheplanehecouldhaveuseditfor290days,whenitwouldhavebeenwornout,andhewouldhavebeenobligedtotaketheremainingtendaysoftheworkingyeartomakeanewplane.IfWilliamhadnotborrowedtheplanehewouldhavetakentendaystomakehimselfaplane,whichhecouldhaveusedfortheremaining290days.Thus,ifwetakeaplanktorepresentthefruitsofaday’slaborwiththeaidofaplane,attheendoftheyear,hadnoborrowingtakenplace,eachwouldhavestoodwithreferencetotheplaneashecommenced,Jameswithaplane,andWilliamwithnone,andeachwouldhavehadastheresultoftheyear’swork290planks.IftheconditionoftheborrowinghadbeenwhatWilliamfirstproposed,thereturnofanewplane,thesamerelativesituationwouldhavebeensecured.Williamwouldhaveworkedfor290days,andtakenthelasttendaystomakethenewplanetoreturntoJames.Jameswouldhavetakenthefirsttendaysoftheyeartomakeanotherplanewhichwouldhavelastedfor290days,whenhewouldhavereceivedanewplanefromWilliam.Thus,thesimplereturnoftheplanewouldhaveputeachinthesamepositionattheendoftheyearasifnoborrowinghadtakenplace.JameswouldhavelostnothingtothegainofWilliam,andWilliamwouldhavegainednothingtothelossofJames.Eachwouldhavehadthereturnhislaborwouldotherwisehaveyielded—viz.,290planks,andJameswouldhavehadtheadvantagewithwhichhestarted,anewplane.

Butwhen,inadditiontothereturnofaplane,aplankisgiven,Jamesattheendoftheyearwillbeinabetterpositionthaniftherehadbeennoborrowing,andWilliaminaworse.Jameswillhave291planksanda

newplane,andWilliam289planksandnoplane.IfWilliamnowborrowstheplankaswellastheplaneonthesametermsasbefore,hewillattheendoftheyearhavetoreturntoJamesaplane,twoplanksandafractionofaplank;andifthisdifferencebeagainborrowed,andsoon,isitnotevidentthattheincomeoftheonewillprogressivelydecline,andthatoftheotherwillprogressivelyincrease,untilatlength,iftheoperationbecontinued,thetimewillcomewhen,astheresultoftheoriginallendingofaplane,JameswillobtainthewholeresultofWilliam’slabor—thatistosay,Williamwillbecomevirtuallyhisslave?

Isinterest,then,naturalandequitable?Thereisnothinginthisillustrationtoshowittobe.EvidentlywhatBastiat(andmanyothers)assignsasthebasisofinterest,“thepowerwhichexistsinthetooltoincreasetheproductivenessoflabor,”isneitherinjusticenorinfactthebasisofinterest.ThefallacywhichmakesBastiat’sillustrationpassasconclusivewiththosewhodonotstoptoanalyzeit,aswehavedone,isthatwiththeloanoftheplanetheyassociatethetransferoftheincreasedproductivepowerwhichaplanegivestolabor.Butthisisreallynotinvolved.TheessentialthingwhichJamesloanedtoWilliamwasnottheincreasedpowerwhichlaboracquiresfromusingplanes.Tosupposethis,weshouldhavetosupposethatthemakingandusingofplaneswasatradesecretorapatentright,whentheillustrationwouldbecomeoneofmonopoly,notofcapital.TheessentialthingwhichJamesloanedtoWilliamwasnottheprivilegeofapplyinghislaborinamoreeffectiveway,buttheuseoftheconcreteresultoftendays’labor.If“thepowerwhichexistsintoolstoincreasetheproductivenessoflabor”werethecauseofinterest,thentherateofinterestwouldincreasewiththemarchofinvention.Thisisnotso.NoryetwillIbeexpectedtopaymoreinterestifIborrowafifty-dollarsewingmachinethanifIborrowfiftydollars’worthofneedles;ifIborrowasteamenginethanifIborrowapileofbricksofequalvalue.Capital,likewealth,isinterchangeable.Itisnotonething;itisanythingtothatvaluewithinthecircleofexchange.Noryetdoestheimprovementoftoolsaddtothereproductivepowerofcapital;itaddstotheproductivepoweroflabor.

AndIaminclinedtothinkthatifallwealthconsistedofsuchthingsasplanes,andallproductionwassuchasthatofcarpenters—thatistosay,ifwealthconsistedbutoftheinertmatteroftheuniverse,andproductionofworkingupthisinertmatterintodifferentshapes,thatinterestwouldbebuttherobberyofindustry,andcouldnotlongexist.Thisisnottosaythattherewouldbenoaccumulation,forthoughthehopeofincreaseisamotiveforturningwealthintocapital,itisnotthemotive,or,atleast,notthemainmotive,foraccumulating.ChildrenwillsavetheirpenniesforChristmas;pirateswilladdtotheirburiedtreasure;Easternprinceswillaccumulatehoardsofcoin;andmenlikeStewartorVanderbilt,havingbecomeoncepossessedofthepassionofaccumulating,wouldcontinueaslongastheycouldtoaddtotheirmillions,eventhoughaccumulationbroughtnoincrease.Noryetisittosaythattherewouldbenoborrowingorlending,forthis,toalargeextent,wouldbepromptedbymutualconvenience.IfWilliamhadajobofworktobeimmediatelybegunandJamesonethatwouldnotcommenceuntiltendaysthereafter,theremightbeamutualadvantageintheloanoftheplane,thoughnoplankshouldbegiven.

Butallwealthisnotofthenatureofplanes,orplanks,ormoney,whichhasnoreproductivepower;norisallproductionmerelytheturningintootherformsofthisinertmatteroftheuniverse.ItistruethatifIputawaymoney,itwillnotincrease.Butsuppose,instead,Iputawaywine.AttheendofayearIwillhaveanincreasedvalue,forthewinewillhaveimprovedinquality.Orsupposingthatinacountryadaptedtothem,Isetoutbees;attheendofayearIwillhavemoreswarmsofbees,andthehoneywhichtheyhavemade.Or,supposing,wherethereisarange,Iturnoutsheep,orhogs,orcattle;attheendoftheyearIwill,upontheaverage,alsohaveanincrease.

Nowwhatgivestheincreaseinthesecasesissomethingwhich,thoughitgenerallyrequireslabortoutilizeit,isyetdistinctandseparablefromlabor—theactivepowerofnature;theprincipleofgrowth,ofreproduction,whicheverywherecharacterizesalltheformsofthat

mysteriousthingorconditionwhichwecalllife.Anditseemstomethatitisthiswhichisthecauseofinterest,ortheincreaseofcapitaloverandabovethatduetolabor.Thereare,sotospeak,inthemovementswhichmakeuptheeverlastingfluxofnature,certainvitalcurrents,whichwill,ifweusethem,aidus,withaforceindependentofourownefforts,inturningmatterintotheformswedesirethatistosay,intowealth.

Whilemanythingsmightbementionedwhich,likemoney,orplanes,orplanks,orengines,orclothing,havenoinnatepowerofincrease,yetotherthingsareincludedinthetermswealthandcapitalwhich,likewine,willofthemselvesincreaseinqualityuptoacertainpoint;or,likebeesorcattle,willofthemselvesincreaseinquantity;andcertainotherthings,suchasseeds,which,thoughtheconditionswhichenablethemtoincreasemaynotbemaintainedwithoutlabor,yetwill,whentheseconditionsaremaintained,yieldanincrease,orgiveareturnoverandabovethatwhichistobeattributedtolabor.

Nowtheinterchangeabilityofwealthnecessarilyinvolvesanaveragebetweenallthespeciesofwealthofanyspecialadvantagewhichaccruesfromthepossessionofanyparticularspecies,fornoonewouldkeepcapitalinoneformwhenitcouldbechangedintoamoreadvantageousform.Noone,forinstance,wouldgrindwheatintoflourandkeepitonhandfortheconvenienceofthosewhodesirefromtimetotimetoexchangewheatoritsequivalentforflour,unlesshecouldbysuchexchangesecureanincreaseequaltothatwhich,allthingsconsidered,hecouldsecurebyplantinghiswheat.Noone,ifhecouldkeepthem,wouldexchangeaflockofsheepnowfortheirnetweightinmuttontobereturnednextyear;forbykeepingthesheephewouldnotonlyhavethesameamountofmuttonnextyear,butalsothelambsandthefleeces.Noonewoulddiganirrigatingditch,unlessthosewhobyitsaidareenabledtoutilizethereproductiveforcesofnaturewouldgivehimsuchaportionoftheincreasetheyreceiveastomakehiscapitalyieldhimasmuchastheirs.Andso,inanycircleofexchange,thepowerofincreasewhichthereproductiveorvitalforceofnaturegivestosomespeciesofcapitalmust

averagewithall;andhewholends,orusesinexchange,money,orplanes,orbricks,orclothing,isnotdeprivedofthepowertoobtainanincrease,anymorethanifhehadlentorputtoareproductiveusesomuchcapitalinaformcapableofincrease.

Thereisalsointheutilizationofthevariationsinthepowersofnatureandofmanwhichiseffectedbyexchange,anincreasewhichsomewhatresemblesthatproducedbythevitalforcesofnature.Inoneplace,forinstance,agivenamountoflaborwillsecure200invegetablefoodor100inanimalfood.Inanotherplace,theseconditionsarereversed,andthesameamountoflaborwillproduce100invegetablefoodor200inanimal.Intheoneplace,therelativevalueofvegetabletoanimalfoodwillbeastwotoone,andintheotherasonetotwo;and,supposingequalamountsofeachtoberequired,thesameamountoflaborwillineitherplacesecure150ofboth.Butbydevotinglaborintheoneplacetotheprocurementofvegetablefood,andintheother,totheprocurementofanimalfood,andexchangingtothequantityrequired,thepeopleofeachplacewillbeenabledbythegivenamountoflabortoprocure200ofboth,lessthelossesandexpensesofexchange;sothatineachplacetheproducewhichistakenfromuseanddevotedtoexchangebringsbackanincrease.ThusWhittington’scat,senttoafarcountrywherecatsarescarceandratsareplenty,returnsinbalesofgoodsandbagsofgold.

Ofcourse,laborisnecessarytoexchange,asitistotheutilizationofthereproductiveforcesofnature,andtheproduceofexchange,astheproduceofagriculture,isclearlytheproduceoflabor;butyet,intheonecaseasintheother,thereisadistinguishableforceco-operatingwiththatoflabor,whichmakesitimpossibletomeasuretheresultsolelybytheamountoflaborexpended,butrenderstheamountofcapitalandthetimeitisinuseintegralpartsinthesumofforces.Capitalaidslaborinallofthedifferentmodesofproduction,butthereisadistinctionbetweentherelationsofthetwoinsuchmodesofproductionasconsistmerelyofchangingtheformorplaceofmatter,asplaningboardsorminingcoal;andsuchmodesofproductionasavailthemselvesofthereproductive

forcesofnature,orofthepowerofincreasearisingfromdifferencesinthedistributionofnaturalandhumanpowers,suchastheraisingofgrainortheexchangeoficeforsugar.Inproductionofthefirstkind,laboraloneistheefficientcause;whenlaborstops,productionstops.Whenthecarpenterdropshisplaneasthesunsets,theincreaseofvalue,whichhewithhisplaneisproducing,ceasesuntilhebeginshislaboragainthefollowingmorning.Whenthefactorybellringsforclosing,whenthemineisshutdown,productionendsuntilworkisresumed.Theinterveningtime,sofarasregardsproduction,mightaswellbeblottedout.Thelapseofdays,thechangeofseasons,isnoelementintheproductionthatdependssolelyupontheamountoflaborexpended.ButintheothermodesofproductiontowhichIhavereferred,andinwhichthepartoflabormaybelikenedtotheoperationsoflumbermenwhothrowtheirlogsintothestream,leavingittothecurrenttocarrythemtotheboomofthesawmillmanymilesbelow,timeisanelement.Theseedinthegroundgerminatesandgrowswhilethefarmersleepsorplowsnewfields,andtheoverflowingcurrentsofairandoceanbearWhittington’scattowardtherat-tormentedrulerintheregionsofromance.

TorecurnowtoBastiat’sillustration.ItisevidentthatifthereisanyreasonwhyWilliamattheendoftheyearshouldreturntoJamesmorethananequallygoodplane,itdoesnotspring,asBastiathasit,fromtheincreasedpowerwhichthetoolgivestolabor,forthat,asIhaveshown,isnotanelement;butitspringsfromtheelementoftime—thedifferenceofayearbetweenthelendingandreturnoftheplane.Now,iftheviewisconfinedtotheillustration,thereisnothingtosuggesthowthiselementshouldoperate,foraplaneattheendoftheyearhasnogreatervaluethanaplaneatthebeginning.Butifwesubstitutefortheplaneacalf,itisclearlytobeseenthattoputJamesinasgoodapositionasifhehadnotlent,Williamattheendoftheyearmustreturn,notacalf,butacow.Or,ifwesupposethatthetendays’laborhadbeendevotedtoplantingcorn,itisevidentthatJameswouldnothavebeenfullyrecompensedifattheendoftheyearhehadreceivedsimplysomuchplantedcorn,forduringtheyeartheplantedcornwouldhavegerminatedandgrownand

multiplied;andsoiftheplanehadbeendevotedtoexchange,itmightduringtheyearhavebeenturnedoverseveraltimes,eachexchangeyieldinganincreasetoJames.Now,therefore,asJames’labormighthavebeenappliedinanyofthoseways—orwhatamountstothesamething,someofthelabordevotedtomakingplanesmighthavebeenthustransferred—hewillnotmakeaplaneforWilliamtousefortheyearunlesshegetsbackmorethanaplane.AndWilliamcanaffordtogivebackmorethanaplane,becausethesamegeneralaverageoftheadvantagesoflaborappliedindifferentmodeswillenablehimtoobtainfromhislaboranadvantagefromtheelementoftime.Itisthisgeneralaveraging,oraswemaysay,“pooling”ofadvantages,whichnecessarilytakesplacewheretheexigenciesofsocietyrequirethesimultaneouscarryingonofthedifferentmodesofproduction,whichgivestothepossessionofwealthincapableinitselfofincreaseanadvantagesimilartothatwhichattachestowealthusedinsuchawayastogainfromtheelementoftime.And,inthelastanalysis,theadvantagewhichisgivenbythelapseoftimespringsfromthegenerativeforceofnatureandthevaryingpowersofnatureandofman.

Werethequalityandcapacityofmattereverywhereuniform,andallproductivepowerinman,therewouldbenointerest.Theadvantageofsuperiortoolsmightattimesbetransferredontermsresemblingthepaymentofinterest,butsuchtransactionswouldbeirregularandintermittent—theexception,nottherule.Forthepowerofobtainingsuchreturnswouldnot,asnow,inhereinthepossessionofcapital,andtheadvantageoftimewouldoperateonlyinpeculiarcircumstances.ThatI,havingathousanddollars,cancertainlyletitoutatinterest,doesnotarisefromthefactthatthereareothers,nothavingathousanddollars,whowillgladlypaymefortheuseofit,iftheycangetitnootherway;butfromthefactthatthecapitalwhichmythousanddollarsrepresentshasthepowerofyieldinganincreasetowhosoeverhasit,eventhoughhebeamillionaire.Forthepricewhichanythingwillbringdoesnotdependuponwhatthebuyerwouldbewillingtogiveratherthangowithoutit,somuchasuponwhatthesellercanotherwiseget.Forinstance,a

manufacturerwhowishestoretirefrombusinesshasmachinerytothevalueof6100,000.Ifhecannot,shouldhesell,takethis6100,000andinvestitsothatitwillyieldhiminterest,itwillbeimmaterialtohim,riskbeingeliminated,whetherheobtainsthewholepriceatonceorininstallments,andifthepurchaserhastherequisitecapital,whichwemustsupposeinorderthatthetransactionmayrestonitsownmerits,itwillbeimmaterialwhetherhepayatonceorafteratime.Ifthepurchaserhasnottherequiredcapital,itmaybetohisconveniencethatpaymentsshouldbedelayed,butitwouldbeonlyinexceptionalcircumstancesthatthesellerwouldask,orthebuyerwouldconsent,topayanypremiumonthisaccount;norinsuchcaseswouldthispremiumbeproperlyinterest.Forinterestisnotproperlyapaymentmadefortheuseofcapital,butareturnaccruingfromtheincreaseofcapital.Ifthecapitaldidnotyieldanincrease,thecaseswouldbefewandexceptionalinwhichtheownerwouldgetapremium.WilliamwouldsoonfindoutifitdidnotpayhimtogiveaplankfortheprivilegeofdeferringpaymentonJames’plane.

Inshort,whenwecometoanalyzeproductionwefindittofallintothreemodes—viz:

ADAPTING,orchangingnaturalproductseitherinformorinplacesoastofitthemforthesatisfactionofhumandesire.GROWING,orutilizingthevitalforcesofnature,asbyraisingvegetablesoranimals.EXCHANGING,orutilizing,soastoaddtothegeneralsumofwealth,thehigherpowersofthosenaturalforceswhichvarywithlocality,orofthosehumanforceswhichvarywithsituation,occupation,orcharacter.

Ineachofthesethreemodesofproductioncapitalmayaidlabor—or,tospeakmoreprecisely,inthefirstmodecapitalmayaidlabor,butisnotabsolutelynecessary;intheotherscapitalmustaidlabor,orisnecessary.

Now,whilebyadaptingcapitalinproperformswemayincreasetheeffectivepoweroflabortoimpressuponmatterthecharacterofwealth,

aswhenweadaptwoodandirontotheformanduseofaplane;oriron,coal,water,andoiltotheformanduseofasteamengine;orstone,clay,timber,andirontothatofabuilding,yetthecharacteristicofthisuseofcapitalis,thatthebenefitisintheuse.When,however,weemploycapitalinthesecondofthesemodes,aswhenweplantgrainintheground,orplaceanimalsonastockfarm,orputawaywinetoimprovewithage,thebenefitarises,notfromtheuse,butfromtheincrease.Andso,whenweemploycapitalinthethirdofthesemodes,andinsteadofusingathingweexchangeit,thebenefitisintheincreaseorgreatervalueofthethingsreceivedinreturn.

Primarily,thebenefitswhicharisefromusegotolabor,andthebenefitswhicharisefromincrease,tocapital.But,inasmuchasthedivisionoflaborandtheinterchangeabilityofwealthnecessitateandimplyanaveragingofbenefits,insofarasthesedifferentmodesofproductioncorrelatewitheachother,thebenefitsthatarisefromonewillaveragewiththebenefitsthatarisefromtheothers,forneitherlabornorcapitalwillbedevotedtoanymodeofproductionwhileanyothermodewhichisopentothemwillyieldagreaterreturn.Thatistosay,laborexpendedinthefirstmodeofproductionwillget,notthewholereturn,butthereturnminussuchpartasisnecessarytogivetocapitalsuchanincreaseasitcouldhavesecuredintheothermodesofproduction,andcapitalengagedinthesecondandthirdmodeswillobtain,notthewholeincrease,buttheincreaseminuswhatissufficienttogivetolaborsuchrewardasitcouldhavesecuredifexpendedinthefirstmode.

Thusinterestspringsfromthepowerofincreasewhichthereproductiveforcesofnature,andtheineffectanalogouscapacityforexchange,givetocapital.Itisnotanarbitrary,butanaturalthing;itisnottheresultofaparticularsocialorganization,butoflawsoftheuniversewhichunderliesociety.Itis,therefore,just.

Theywhotalkaboutabolishinginterestfallintoanerrorsimilartothatpreviouslypointedoutasgivingitsplausibilitytothedoctrinethatwages

aredrawnfromcapital.Whentheythusthinkofinterest,theythinkonlyofthatwhichispaidbytheuserofcapitaltotheownerofcapital.But,manifestly,thisisnotallinterest,butonlysomeinterest.Whoeverusescapitalandobtainstheincreaseitiscapableofgivingreceivesinterest.IfIplantandcareforatreeuntilitcomestomaturity,Ireceive,initsfruit,interestuponthecapitalIhavethusaccumulated—thatis,thelaborIhaveexpended.IfIraiseacow,themilkwhichsheyieldsme,morningandevening,isnotmerelytherewardofthelaborthenexerted;butinterestuponthecapitalwhichmylabor,expendedinraisingher,hasaccumulatedinthecow.Andso,ifIusemyowncapitalindirectlyaidingproduction,asbymachinery,orinindirectlyaidingproduction,inexchange,Ireceiveaspecialanddistinguishableadvantagefromthereproductivecharacterofcapital,whichisasreal,thoughperhapsnotasclear,asthoughIhadlentmycapitaltoanotherandhehadpaidmeinterest.

Thisisreallysaidofprofits,butwiththeevidentmeaningofreturnstocapital.

[BacktoTableofContents]

ChapterIVOfSpuriousCapitalandofProfitsOftenMistakenforInterest

Thebeliefthatinterestistherobberyofindustryis,Iampersuaded,inlargepartduetoafailuretodiscriminatebetweenwhatisreallycapitalandwhatisnot,andbetweenprofitswhichareproperlyinterestandprofitswhicharisefromothersourcesthantheuseofcapital.Inthespeechandliteratureofthedayeveryoneisstyledacapitalistwhopossesseswhat,independentofhislabor,willyieldhimareturn,whilewhateveristhusreceivedisspokenofastheearningsortakingsofcapital,andweeverywherehearoftheconflictoflaborandcapital.Whetherthereis,inreality,anyconflictbetweenlaborandcapital,Idonotyetaskthereadertomakeuphismind;butitwillbewellheretoclearawaysomemisapprehensionswhichconfusethejudgment.

Attentionhasalreadybeencalledtothefactthatlandvalues,whichconstitutesuchanenormouspartofwhatiscommonlycalledcapital,arenotcapitalatall;andthatrent,whichisascommonlyincludedinthereceiptsofcapital,andwhichtakesanever-increasingportionoftheproduceofanadvancingcommunity,isnottheearningsofcapital,andmustbecarefullyseparatedfrominterest.Itisnotnecessarynowtodwellfurtheruponthispoint.Attentionhaslikewisebeencalledtothefactthatthestocks,bonds,etc.,whichconstituteanothergreatpartofwhatiscommonlycalledcapital,arenotcapitalatall;but,insomeoftheirshapes,theseevidencesofindebtednesssocloselyresemblecapitalandinsomecasesactuallyperform,orseemtoperform,thefunctionsofcapital,whiletheyyieldareturntotheirownerswhichisnotonlyspokenofasinterest,buthaseverysemblanceofinterest,thatitisworthwhile,beforeattemptingtocleartheideaofinterestfromsomeotherambiguitiesthatbesetit,tospeakagainoftheseatgreaterlength.

Nothingcanbecapital,letitalwaysberemembered,thatisnotwealth—thatistosay,nothingcanbecapitalthatdoesnotconsistofactual,tangiblethings,notthespontaneousofferingsofnature,whichhaveinthemselves,andnotbyproxy,thepowerofdirectlyorindirectlyministeringtohumandesire.

Thus,agovernmentbondisnotcapital,noryetisittherepresentativeofcapital.Thecapitalthatwasoncereceivedforitbythegovernmenthasbeenconsumedunproductively—blownawayfromthemouthsofcannon,usedupinwarships,expendedinkeepingmenmarchinganddrilling,killinganddestroying.Thebondcannotrepresentcapitalthathasbeendestroyed.Itdoesnotrepresentcapitalatall.Itissimplyasolemndeclarationthatthegovernmentwill,sometimeorother,takebytaxationfromthethenexistingstockofthepeople,somuchwealth,whichitwillturnovertotheholderofthebond;andthat,inthemeanwhile,itwill,fromtimetotime,take,inthesameway,enoughtomakeuptotheholdertheincreasewhichsomuchcapitalasitsomedaypromisestogivehimwouldyieldhimwereitactuallyinhispossession.Theimmensesumswhicharethustakenfromtheproduceofeverymoderncountrytopayinterestonpublicdebtsarenottheearningsorincreaseofcapital—arenotreallyinterestinthestrictsenseoftheterm,butaretaxesleviedontheproduceoflaborandcapital,leavingsomuchlessforwagesandsomuchlessforrealinterest.

But,supposingthebondshavebeenissuedforthedeepeningofariverbed,theconstructionoflighthouses,ortheerectionofapublicmarket;orsupposing,toembodythesameideawhilechangingtheillustration,theyhavebeenissuedbyarailroadcompany.Heretheydorepresentcapital,existingandappliedtoproductiveuses,andlikestockinadividendpayingcompanymaybeconsideredasevidencesoftheownershipofcapital.Buttheycanbesoconsideredonlyinsofarastheyactuallyrepresentcapital,andnotastheyhavebeenissuedinexcessofthecapitalused.Nearlyallourrailroadcompaniesandotherincorporationsareloadeddowninthisway.Whereonedollar’sworthofcapitalhasbeen

reallyused,certificatesfortwo,three,four,five,oreventen,havebeenissued,anduponthisfictitiousamountinterestordividendsarepaidwithmoreorlessregularity.Now,what,inexcessoftheamountdueasinteresttotherealcapitalinvested,isthusearnedbythesecompaniesandthuspaidout,aswellasthelargesumsabsorbedbymanagingringsandneveraccountedfor,isevidentlynottakenfromtheaggregateproduceofthecommunityonaccountoftheservicesrenderedbycapital—itisnotinterest.Ifwearerestrictedtotheterminologyofeconomicwriterswhodecomposeprofitsintointerest,insurance,andwagesofsuperintendence,itmustfallintothecategoryofwagesofsuperintendence.

Butwhilewagesofsuperintendenceclearlyenoughincludetheincomederivedfromsuchpersonalqualitiesasskill,tact,enterprise,organizingability,inventivepower,character,etc.,totheprofitswearespeakingofthereisanothercontributingelement,whichcanonlyarbitrarilybeclassedwiththese—theelementofmonopoly.

WhenJamesIgrantedtohisminiontheexclusiveprivilegeofmakinggoldandsilverthread,andprohibited,underseverepenalties,everyoneelsefrommakingsuchthread,theincomewhichBuckinghamenjoyedinconsequencedidnotarisefromtheinterestuponthecapitalinvestedinthemanufacture,norfromtheskill,etc.,ofthosewhoreallyconductedtheoperations,butfromwhathegotfromtheking—viz.,theexclusiveprivilege—inrealitythepowertolevyataxforhisownpurposesuponalltheusersofsuchthread.Fromasimilarsourcecomesalargepartoftheprofitswhicharecommonlyconfoundedwiththeearningsofcapital.Receiptsfromthepatentsgrantedforalimitedtermofyearsforthepurposeofencouraginginventionareclearlyattributabletothissource,asarethereturnsderivedfrommonopoliescreatedbyprotectivetariffsunderthepretenseofencouraginghomeindustry.Butthereisanotherfarmoreinsidiousandfarmoregeneralformofmonopoly.Intheaggregationoflargemassesofcapitalunderacommoncontrolthereisdevelopedanewandessentiallydifferentpowerfromthatpowerofincreasewhichisageneralcharacteristicofcapitalandwhichgivesrise

tointerest.Whilethelatteris,sotospeak,constructiveinitsnature,thepowerwhich,asaggregationproceeds,risesuponitisdestructive.ItisapowerofthesamekindasthatwhichJamesgrantedtoBuckingham,anditisoftenexercisedwithasrecklessadisregard,notonlyoftheindustrial,butofthepersonalrightsofindividuals.Arailroadcompanyapproachesasmalltownasahighwaymanapproacheshisvictim.Thethreat,“Ifyoudonotaccedetoourtermswewillleaveyourtowntwoorthreemilestooneside!”isasefficaciousasthe“Standanddeliver,”whenbackedbyacockedpistol.Forthethreatoftherailroadcompanyisnotmerelytodeprivethetownofthebenefitswhichtherailroadmightgive;itistoputitinafarworsepositionthanifnorailroadhadbeenbuilt.Orif,wherethereiswatercommunication,anoppositionboatisputon;ratesarereduceduntilsheisforcedoff,andthenthepublicarecompelledtopaythecostoftheoperation,justastheRohillaswereobligedtopaythefortylacswithwhichSurajahDowlahhiredofWarrenHastingsanEnglishforcetoassisthimindesolatingtheircountryanddecimatingtheirpeople.Andjustasrobbersunitetoplunderinconcertanddividethespoil,sodothetrunklinesofrailroadsunitetoraiseratesandpooltheirearnings,orthePacificroadsformacombinationwiththePacificMailSteamshipCompanybywhichtollgatesarevirtuallyestablishedonlandandocean.AndjustasBuckingham’screatures,underauthorityofthegoldthreadpatent,searchedprivatehouses,andseizedpapersandpersonsforpurposesoflustandextortion,sodoesthegreattelegraphcompanywhich,bythepowerofassociatedcapital,deprivesthepeopleoftheUnitedStatesofthefullbenefitsofabeneficentinvention,tamperwithcorrespondenceandcrushoutnewspaperswhichoffendit.

Itisnecessaryonlytoalludetothesethings,nottodwellonthem.Everyoneknowsthetyrannyandrapacitywithwhichcapitalwhenconcentratedinlargeamountsisfrequentlywieldedtocorrupt,torob,andtodestroy.WhatIwishtocallthereader’sattentiontoisthatprofitsthusderivedarenottobeconfoundedwiththelegitimatereturnsofcapitalasanagentofproduction.Theyareforthemostparttobeattributedtoa

maladjustmentofforcesinthelegislativedepartmentofgovernmentandtoablindadherencetoancientbarbarismsandthesuperstitiousreverenceforthetechnicalitiesofanarrowprofessionintheadministrationoflaw;whilethegeneralcausewhichinadvancingcommunitiestends,withtheconcentrationofwealth,totheconcentrationofpower,isthesolutionofthegreatproblemweareseekingfor,buthavenotyetfound.

Anyanalysiswillshowthatmuchoftheprofitswhichare,incommonthought,confoundedwithinterestareinrealitydue,nottothepowerofcapital,buttothepowerofconcentratedcapital,orofconcentratedcapitalactinguponbadsocialadjustments.Anditwillalsoshowthatwhatareclearlyandproperlywagesofsuperintendenceareveryfrequentlyconfoundedwiththeearningsofcapital.

And,so,profitsproperlyduetotheelementsofriskarefrequentlyconfoundedwithinterest.Somepeopleacquirewealthbytakingchanceswhichtothemajorityofpeoplemustnecessarilybringloss.Sucharemanyformsofspeculation,andespeciallythatmodeofgamblingknownasstockdealing.Nerve,judgment,thepossessionofcapital,skillinwhatinlowerformsofgamblingareknownastheartsoftheconfidencemanandblackleg,giveadvantagetotheindividual;but,justasatagamingtable,whateveronegainssomeoneelsemustlose.

Now,takingthegreatfortunesthataresooftenreferredtoasexemplifyingtheaccumulativepowerofcapital—theDukesofWestminsterandMarquisesofBute,theRothschilds,Astors,Stewarts,Vanderbilts,Goulds,Stanfords,andFloods—itisuponexaminationreadilyseenthattheyhavebeenbuiltup,ingreaterorlesspart,notbyinterest,butbyelementssuchaswehavebeenreviewing.

HownecessaryitistonotethedistinctionstowhichIhavebeencallingattentionisshownincurrentdiscussions,wheretheshieldseemsalternatelywhiteorblackasthestandpointisshiftedfromonesidetotheother.Ontheonehandwearecalledupontosee,intheexistenceofdeep

povertysidebysidewithvastaccumulationsofwealth,theaggressionsofcapitalonlabor,andinreplyitispointedoutthatcapitalaidslabor,andhenceweareaskedtoconcludethatthereisnothingunjustorunnaturalinthewidegulfbetweenrichandpoor;thatwealthisbuttherewardofindustry,intelligence,andthrift;andpovertybutthepunishmentofindolence,ignorance,andimprudence.

[BacktoTableofContents]

ChapterVTheLawofInterest

Letusturnnowtothelawofinterest,keepinginmindtwothingstowhichattentionhasheretoforebeencalled—viz:

First—Thatitisnotcapitalwhichemployslabor,butlaborwhichemployscapital.Second—Thatcapitalisnotafixedquantity,butcanalwaysbeincreasedordecreased,(1)bythegreaterorlessapplicationoflabortotheproductionofcapital,and(2)bytheconversionofwealthintocapital,orcapitalintowealth,forcapitalbeingbutwealthappliedinacertainway,wealthisthelargerandinclusiveterm.

Itismanifestthatunderconditionsoffreedomthemaximumthatcanbegivenfortheuseofcapitalwillbetheincreaseitwillbring,andtheminimumorzerowillbethereplacementofcapital;forabovetheonepointtheborrowingofcapitalwouldinvolvealoss,andbelowtheother,capitalcouldnotbemaintained.

Observe,again:Itisnot,asiscarelesslystatedbysomewriters,theincreasedefficiencygiventolaborbytheadaptationofcapitaltoanyspecialformorusewhichfixesthismaximum,buttheaveragepowerofincreasewhichbelongstocapitalgenerally.Thepowerofapplyingitselfinadvantageousformsisapoweroflabor,whichcapitalascapitalcannotclaimnorshare.AbowandarrowswillenableanIndiantokill,letussay,abuffaloeveryday,whilewithsticksandstoneshecouldhardlykilloneinaweek;buttheweaponmakerofthetribecouldnotclaimfromthehuntersixoutofeverysevenbuffaloeskilledasareturnfortheuseofabowandarrows;norwillcapitalinvestedinawoolenfactoryyieldtothecapitalistthedifferencebetweentheproduceofthefactoryandwhatthesameamountoflaborcouldhaveobtainedwiththespinningwheel

andhandloom.WilliamwhenheborrowsaplanefromJamesdoesnotinthatobtaintheadvantageoftheincreasedefficiencyoflaborwhenusingaplaneforthesmoothingofboardsoverwhatithaswhensmoothingthemwithashellorflint.Theprogressofknowledgehasmadetheadvantageinvolvedintheuseofplanesacommonpropertyandpoweroflabor.WhathegetsfromJamesismerelysuchadvantageastheelementofayear’stimewillgivetothepossessionofsomuchcapitalasisrepresentedbytheplane.

Now,ifthevitalforcesofnaturewhichgiveanadvantagetotheelementoftimebethecauseofinterest,itwouldseemtofollowthatthismaximumrateofinterestwouldbedeterminedbythestrengthoftheseforcesandtheextenttowhichtheyareengagedinproduction.Butwhilethereproductiveforceofnatureseemstovaryenormously,as,forinstance,betweenthesalmon,whichspawnsthousandsofeggs,andthewhale,whichbringsforthasinglecalfatintervalsofyears;betweentherabbitandtheelephant,thethistleandthegiganticredwood,itappearsfromthewaythenaturalbalanceismaintainedthatthereisanequationbetweenthereproductiveanddestructiveforcesofnature,whichineffectbringstheprincipleofincreasetoauniformpoint.Thisnaturalbalancemanhaswithinnarrowlimitsthepowertodisturb,andbythemodificationofnaturalconditionsmayavailhimselfatwillofthevaryingstrengthofthereproductiveforceinnature.Butwhenhedoesso,therearisesfromthewidescopeofhisdesiresanotherprinciplewhichbringsaboutintheincreaseofwealthasimilarequationandbalancetothatwhichiseffectedinnaturebetweenthedifferentformsoflife.Thisequationexhibitsitselfthroughvalues.If,inacountryadaptedtoboth,Igotoraisingrabbitsandyoutoraisinghorses,myrabbitsmay,untilthenaturallimitisreached,increasefasterthanyourhorses.Butmycapitalwillnotincreasefaster,fortheeffectofthevaryingratesofincreasewillbetolowerthevalueofrabbitsascomparedwithhorses,andtoincreasethevalueofhorsesascomparedwithrabbits.

Thoughthevaryingstrengthofthevitalforcesofnatureisthusbrought

touniformity,theremaybeadifferenceinthedifferentstagesofsocialdevelopmentastotheproportionateextenttowhich,intheaggregateproductionofwealth,thesevitalforcesareenlisted.Butastothis,therearetworemarkstobemade.Inthefirstplace,althoughinsuchacountryasEnglandtheparttakenbymanufacturesintheaggregatewealthproductionhasverymuchincreasedascomparedwiththeparttakenbyagriculture,yetitistobenoticedthattoaverygreatextentthisistrueonlyofthepoliticalorgeographicaldivision,andnotoftheindustrialcommunity.Forindustrialcommunitiesarenotlimitedbypoliticaldivisions,orboundedbyseasormountains.Theyarelimitedonlybythescopeoftheirexchanges,andtheproportionwhichintheindustrialeconomyofEnglandagricultureandstockraisingbeartomanufacturesisaveragedwithIowaandIllinois,withTexasandCalifornia,withCanadaandIndia,withQueenslandandtheBaltic—inshort,witheverycountrytowhichtheworld-wideexchangesofEnglandextend.Inthenextplace,itistoberemarkedthatalthoughintheprogressofcivilizationthetendencyistotherelativeincreaseofmanufactures,ascomparedwithagriculture,andconsequentlytoaproportionatelylessrelianceuponthereproductiveforcesofnature,yetthisisaccompaniedbyacorrespondingextensionofexchanges,andhenceagreatercallinginofthepowerofincreasewhichthusarises.Sothesetendencies,toagreatextent,and,probably,sofaraswehaveyetgone,completelybalanceeachother,andpreservetheequilibriumwhichfixestheaverageincreaseofcapital,orthenormalrateofinterest.

Now,thisnormalpointofinterest,whichliesbetweenthenecessarymaximumandthenecessaryminimumofthereturntocapital,must,whereveritrests,besuchthatallthings(suchasthefeelingofsecurity,desireforaccumulation,etc.)considered,therewardofcapitalandtherewardoflaborwillbeequal—thatistosay,willgiveanequallyattractiveresultfortheexertionorsacrificeinvolved.Itisimpossible,perhaps,toformulatethispoint,aswagesarehabituallyestimatedinquantity,andinterestinaratio;butifwesupposeagivenquantityofwealthtobetheproduceofagivenamountoflabor,co-operatingfora

statedtimewithacertainamountofcapital,theproportioninwhichtheproducewouldbedividedbetweenthelaborandthecapitalwouldaffordacomparison.Theremustbesuchapointat,orrather,about,whichtherateofinterestmusttendtosettle;since,unlesssuchanequilibriumwereeffected,laborwouldnotaccepttheuseofcapital,orcapitalwouldnotbeplacedatthedisposaloflabor.Forlaborandcapitalarebutdifferentformsofthesamething—humanexertion.Capitalisproducedbylabor;itis,infact,butlaborimpresseduponmatter—laborstoredupinmatter,tobereleasedagainasneeded,asthebeatofthesunstoredupincoalisreleasedinthefurnace.Theuseofcapitalinproductionis,therefore,butamodeoflabor.Ascapitalcanbeusedonlybybeingconsumed,itsuseistheexpenditureoflabor,andforthemaintenanceofcapital,itsproductionbylabormustbecommensuratewithitsconsumptioninaidoflabor.Hencetheprinciplethat,undercircumstanceswhichpermitfreecompetition,operatestobringwagestoacommonstandardandprofitstoasubstantialequality—theprinciplethatmenwillseektogratifytheirdesireswiththeleastexertionoperatestoestablishandmaintainthisequilibriumbetweenwagesandinterest.

Thisnaturalrelationbetweeninterestandwages—thisequilibriumatwhichbothwillrepresentequalreturnstoequalexertions—maybestatedinaformwhichsuggestsarelationofopposition;butthisoppositionisonlyapparent.InapartnershipbetweenDickandHarry,thestatementthatDickreceivesacertainproportionoftheprofitsimpliesthattheportionofHarryislessorgreaterasDick’sisgreaterorless;butwhere,asinthiscase,eachgetsonlywhatheaddstothecommonfund,theincreaseoftheportionoftheonedoesnotdecreasewhattheotherreceives.

Andthisrelationfixed,itisevidentthatinterestandwagesmustriseandfalltogether,andthatinterestcannotbeincreasedwithoutincreasingwages;norwagesloweredwithoutdepressinginterest.ForIfwagesfall,interestmustalsofallinproportion,elseitbecomesmoreprofitabletoturnlaborintocapitalthantoapplyitdirectly;while,ifinterestfalls,

wagesmustlikewiseproportionatelyfall,orelsetheincrementofcapitalwouldbechecked.

Weare,ofcourse,notspeakingofparticularwagesandparticularinterest,butofthegeneralrateofwagesandthegeneralrateofinterest,meaningalwaysbyinterestthereturnwhichcapitalcansecure,lessinsuranceandwagesofsuperintendence.Inaparticularcase,oraparticularemployment,thetendencyofwagesandinteresttoanequilibriummaybeimpeded;butbetweenthegeneralrateofwagesandthegeneralrateofinterest,thistendencymustbeprompttoact.Forthoughinaparticularbranchofproductionthelinemaybeclearlydrawnbetweenthosewhofurnishlaborandthosewhofurnishcapital,yetevenincommunitieswherethereisthesharpestdistinctionbetweenthegeneralclasslaborersandthegeneralclasscapitalists,thesetwoclassesshadeoffintoeachotherbyimperceptiblegradations,andontheextremeswherethetwoclassesmeetinthesamepersons,theinteractionwhichrestoresequilibrium,orratherpreventsitsdisturbance,cangoonwithoutobstruction,whateverobstaclesmayexistwheretheseparationiscomplete.And,furthermore,itmustberemembered,ashasbeforebeenstated,thatcapitalisbutaportionofwealth,distinguishedfromwealthgenerallyonlybythepurposetowhichitisapplied,and,hence,thewholebodyofwealthhasupontherelationsofcapitalandlaborthesameequalizingeffectthataflywheelhasuponthemotionofmachinery,takingupcapitalwhenitisinexcessandgivingitoutagainwhenthereisadeficiency,justasajewelermaygivehiswifediamondstowearwhenhehasasuperabundantstock,andputtheminhisshowcaseagainwhenhisstockbecomesreduced.Thusanytendencyonthepartofinteresttoriseabovetheequilibriumwithwagesmustimmediatelybegetnotonlyatendencytodirectlabortotheproductionofcapital,butalsotheapplicationofwealthtotheusesofcapital;whileanytendencyofwagestoriseabovetheequilibriumwithinterestmustinlikemannerbegetnotonlyatendencytoturnlaborfromtheproductionofcapital,butalsotolessentheproportionofcapitalbydivertingfromaproductivetoanonproductiveusesomeofthearticlesofwealthofwhichcapitalis

composed.

Torecapitulate:Thereisacertainrelationorratiobetweenwagesandinterest,fixedbycauses,which,ifnotabsolutelypermanent,slowlychange,atwhichenoughlaborwillbeturnedintocapitaltosupplythecapitalwhich,inthedegreeofknowledge,stateofthearts,densityofpopulation,characterofoccupations,variety,extentandrapidityofexchanges,willbedemandedforproduction,andthisrelationorratiotheinteractionoflaborandcapitalconstantlymaintains;henceinterestmustriseandfallwiththeriseandfallofwages.

Toillustrate:Thepriceofflourisdeterminedbythepriceofwheatandcostofmilling.Thecostofmillingvariesslowlyandbutlittle,thedifferencebeing,evenatlongintervals,hardlyperceptible;whilethepriceofwheatvariesfrequentlyandlargely.Hencewecorrectlysaythatthepriceofflourisgovernedbythepriceofwheat.Or,toputthepropositioninthesameformasthepreceding:Thereisacertainrelationorratiobetweenthevalueofwheatandthevalueofflour,fixedbythecostofmilling,whichrelationorratiotheinteractionbetweenthedemandforflourandthesupplyofwheatconstantlymaintains;hencethepriceofflourmustriseandfallwiththeriseandfallofthepriceofwheat.

Or,as,leavingtheconnectinglink,thepriceofwheat,toinference,wesaythatthepriceofflourdependsuponthecharacteroftheseasons,wars,etc.,somayweputthelawofinterestinaformwhichdirectlyconnectsitwiththelawofrent,bysayingthatthegeneralrateofinterestwillbedeterminedbythereturntocapitaluponthepoorestlandtowhichcapitalisfreelyapplied—thatistosay,uponthebestlandopentoitwithoutthepaymentofrent.Thuswebringthelawofinterestintoaformwhichshowsittobeacorollaryofthelawofrent.

Wemayprovethisconclusioninanotherway:Forthatinterestmustdecreaseasrentincreases,wecanplainlyseeifweeliminatewages.To

dothis,wemust,tobesure,imagineauniverseorganizedontotallydifferentprinciples.Nevertheless,wemayimaginewhatCarlylewouldcallafool’sparadise,wheretheproductionofwealthwentonwithouttheaidoflabor,andsolelybythereproductiveforceofcapital—wheresheepboreready-madeclothingontheirbacks,cowspresentedbutterandcheese,andoxen,whentheygottotheproperpointoffatness,carvedthemselvesintobeefsteaksandroastingribs;wherehousesgrewfromtheseed,andajackknifethrownuponthegroundwouldtakerootandinduetimebearacropofassortedcutlery.Imaginecertaincapitaliststransported,withtheircapitalinappropriateforms,tosuchaplace.Manifestly,theywouldget,asthereturnfortheircapital,thewholeamountofwealthitproducedonlysolongasnoneofitsproducewasdemandedasrent.Whenrentarose,itwouldcomeoutoftheproduceofcapital,andasitincreased,thereturntotheownersofcapitalmustnecessarilydiminish.Ifweimaginetheplacewherecapitalpossessedthispowerofproducingwealthwithouttheaidoflabortobeoflimitedextent,sayanisland,weshallseethatassoonascapitalhadincreasedtothelimitoftheislandtosupportit,thereturntocapitalmustfalltoatrifleaboveitsminimumofmerereplacement,andthelandownerswouldreceivenearlythewholeproduceasrent,fortheonlyalternativecapitalistswouldhavewouldbetothrowtheircapitalintothesea.Or,ifweimaginesuchanislandtobeincommunicationwiththerestoftheworld,thereturntocapitalwouldsettleattherateofreturninotherplaces.Interesttherewouldbeneitherhighernorlowerthananywhereelse.Rentwouldobtainthewholeofthesuperioradvantage,andthelandofsuchanislandwouldhaveagreatvalue.

Tosumup,thelawofinterestisthis:

Therelationbetweenwagesandinterestisdeterminedbytheaveragepowerofincreasewhichattachestocapitalfromitsuseinreproductivemodes.Asrentarises,interestwillfallaswagesfall,orwillbedeterminedbythemarginofcultivation.

Ihaveendeavoredatthislengthtotraceoutandillustratethelawofinterestmoreindeferencetotheexistingterminologyandmodesofthoughtthanfromtherealnecessitiesofourinquiry,wereitunembarrassedbybefoggingdiscussions.Intruth,theprimarydivisionofwealthindistributionisdual,nottripartite.Capitalisbutaformoflabor,anditsdistinctionfromlaborisinrealitybutasubdivision,justasthedivisionoflaborintoskilledandunskilledwouldbe.Inourexaminationwehavereachedthesamepointaswouldhavebeenattainedhadwesimplytreatedcapitalasaformoflabor,andsoughtthelawwhichdividestheproducebetweenrentandwages;thatistosay,betweenthepossessorsofthetwofactors,naturalsubstancesandpowers,andhumanexertion—whichtwofactorsbytheirunionproduceallwealth.

[BacktoTableofContents]

ChapterVIWagesandtheLawofWages

Wehavebyinferencealreadyobtainedthelawofwages.Buttoverifythedeductionandtostripthesubjectofallambiguities,letusseekthelawfromanindependentstartingpoint.

Thereis,ofcourse,nosuchthingasacommonrateofwages,inthesensethatthereisatanygiventimeandplaceacommonrateofinterest.Wages,whichincludeallreturnsreceivedfromlabor,notonlyvarywiththedifferingpowersofindividuals,but,astheorganizationofsocietybecomeselaborate,varylargelyasbetweenoccupations.Nevertheless,thereisacertaingeneralrelationbetweenallwages,sothatweexpressaclearandwell-understoodideawhenwesaythatwagesarehigherorlowerinonetimeorplacethaninanother.Intheirdegrees,wagesriseandfallinobediencetoacommonlaw.Whatisthislaw?

Thefundamentalprincipleofhumanaction—thelawthatistopoliticaleconomywhatthelawofgravitationistophysics—isthatmenseektogratifytheirdesireswiththeleastexertion.Evidently,thisprinciplemustbringtoanequality,throughthecompetitionitinduces,therewardgainedbyequalexertionsundersimilarcircumstances.Whenmenworkforthemselves,thisequalizationwillbelargelyeffectedbytheequationofprices;andbetweenthosewhoworkforthemselvesandthosewhoworkforothers,thesametendencytoequalizationwilloperate.Now,underthisprinciple,what,inconditionsoffreedom,willbethetermsatwhichonemancanhireotherstoworkforhim?Evidently,theywillbefixedbywhatthemencouldmakeiflaboringforthemselves.Theprinciplewhichwillpreventhimfromhavingtogiveanythingabovethisexceptwhatisnecessarytoinducethechange,willalsopreventthemfromtakingless.Didtheydemandmorethecompetitionofotherswouldpreventthemfromgettingemployment.Didheofferless,nonewould

accepttheterms,astheycouldobtaingreaterresultsbyworkingforthemselves.Thus,althoughtheemployerwishestopayaslittleaspossible,andtheemployeetoreceiveasmuchaspossible,wageswillbefixedbythevalueorproduceofsuchlabortothelaborersthemselves.Ifwagesaretemporarilycarriedeitheraboveorbelowthisline,atendencytocarrythembackatoncearises.

Buttheresult,ortheearningsoflabor,asisreadilyseeninthoseprimaryandfundamentaloccupationsinwhichlaborfirstengages,andwhich,eveninthemosthighlydevelopedconditionofsociety,stillformthebaseofproduction,doesnotdependmerelyupontheintensityorqualityofthelaboritself.Wealthistheproductoftwofactors,landandlabor,andwhatagivenamountoflaborwillyieldwillvarywiththepowersofthenaturalopportunitiestowhichitisapplied.Thisbeingthecase,theprinciplethatmenseektogratifytheirdesireswiththeleastexertionwillfixwagesattheproduceofsuchlaboratthepointofhighestnaturalproductivenessopentoit.Now,byvirtueofthesameprinciple,thehighestpointofnaturalproductivenessopentolaborunderexistingconditionswillbethelowestpointatwhichproductioncontinues,formen,impelledbyasupremelawofthehumanmindtoseekthesatisfactionoftheirdesireswiththeleastexertion,willnotexpendlaboratalowerpointofproductivenesswhileahigherisopentothem.Thusthewageswhichanemployermustpaywillbemeasuredbythelowestpointofnaturalproductivenesstowhichproductionextends,andwageswillriseorfallasthispointrisesorfalls.

Toillustrate:Inasimplestateofsociety,eachman,asistheprimitivemode,worksforhimself—someinhunting,letussay,someinfishing,someincultivatingtheground.Cultivation,wewillsuppose,hasjustbegun,andthelandinuseisallofthesamequality,yieldingasimilarreturntosimilarexertions.Wages,therefore—for,thoughthereisneitheremployernoremployed,thereareyetwages—willbethefullproduceoflabor,and,makingallowanceforthedifferenceofagreeableness,risk,etc.,inthethreepursuits,theywillbeontheaverageequalineach—that

istosay,equalexertionswillyieldequalresults.Now,ifoneoftheirnumberwishestoemploysomeofhisfellowstoworkforhiminsteadofforthemselves,hemustpaywagesfixedbythisfull,averageproduceoflabor.

Letaperiodoftimeelapse.Cultivationhasextended,and,insteadoflandofthesamequality,embraceslandsofdifferentqualities.Wages,now,willnotbeasbefore,theaverageproduceoflabor.Theywillbetheaverageproduceoflaboratthemarginofcultivation,orthepointoflowestreturn.For,asmenseektosatisfytheirdesireswiththeleastpossibleexertion,thepointoflowestreturnincultivationmustyieldtolaborareturnequivalenttotheaveragereturninhuntingandfishing.Laborwillnolongeryieldequalreturnstoequalexertions,butthosewhoexpendtheirlaboronthesuperiorlandwillobtainagreaterproduceforthesameexertionthanthosewhocultivatetheinferiorland.Wages,however,willstillbeequal,forthisexcesswhichthecultivatorsofthesuperiorlandreceiveisinrealityrent,andiflandhasbeensubjectedtoindividualownershipwillgiveitavalue.Now,if,underthesechangedcircumstances,onememberofthiscommunitywishestohireotherstoworkforhim,hewillhavetopayonlywhatthelaboryieldsatthelowestpointofcultivation.Ifthereafterthemarginofcultivationsinkstopointsoflowerandlowerproductiveness,somustwagessink;if,onthecontrary,itrises,soalsomustwagesrise;for,justasafreebodytendstotaketheshortestroutetotheearth’scenter,sodomenseektheeasiestmodetothegratificationoftheirdesires.

Here,then,wehavethelawofwages,asadeductionfromaprinciplemostobviousandmostuniversal.Thatwagesdependuponthemarginofcultivation—thattheywillbegreaterorlessastheproducewhichlaborcanobtainfromthehighestnaturalopportunitiesopentoitisgreaterorless,flowsfromtheprinciplethatmenwillseektosatisfytheirwantswiththeleastexertion.

Now,ifweturnfromsimplesocialstatestothecomplexphenomenaof

highlycivilizedsocieties,weshallfinduponexaminationthattheyalsofallunderthislaw.

Insuchsocieties,wagesdifferwidely,buttheystillbearamoreorlessdefiniteandobviousrelationtoeachother.Thisrelationisnotinvariable,asatonetimeaphilosopherofreputemayearnbyhislecturesmanyfoldthewagesofthebestmechanic,andatanothercanhardlyhopeforthepayofafootman;asinagreatcityoccupationsmayyieldrelativelyhighwages,whichinanewsettlementwouldyieldrelativelylowwages;yetthesevariationsbetweenwagesmay,underallconditions,andinspiteofarbitrarydivergencescausedbycustom,law,etc.,betracedtocertaincircumstances.InoneofhismostinterestingchaptersAdamSmiththusenumeratestheprincipalcircumstanceswhich“makeupforasmallpecuniarygaininsomeemploymentsandcounterbalanceagreatoneinothers:first,theagreeablenessordisagreeablenessoftheemploymentsthemselves;secondly,theeasinessandcheapness,orthedifficultyandexpenseoflearningthem;thirdly,theconstancyorinconstancyofemploymentinthem;fourthly,thesmallorgreattrustwhichmustbereposedinthosewhoexercisethem;andfifthly,theprobabilityorimprobabilityofsuccessinthem.”Itisnotnecessarytodwellindetailonthesecausesofvariationinwagesbetweendifferentemployments.TheyhavebeenadmirablyexplainedandillustratedbyAdamSmithandtheeconomistswhohavefollowedhim,whohavewellworkedoutthedetails,eveniftheyhavefailedtoapprehendthemainlaw.

Theeffectofallthecircumstanceswhichgiverisetothedifferencesbetweenwagesindifferentoccupationsmaybeincludedassupplyanddemand,anditisperfectlycorrecttosaythatthewagesindifferentoccupationswillvaryrelativelyaccordingtodifferencesinthesupplyanddemandoflabor—meaningbydemandthecallwhichthecommunityasawholemakesforservicesoftheparticularkind,andbysupplytherelativeamountoflaborwhich,undertheexistingconditions,canbedeterminedtotheperformanceofthoseparticularservices.Butthoughthisistrueastotherelativedifferencesofwages,whenitissaid,asis

commonlysaid,thatthegeneralrateofwagesisdeterminedbysupplyanddemand,thewordsaremeaningless.Forsupplyanddemandarebutrelativeterms.Thesupplyoflaborcanonlymeanlaborofferedinexchangeforlaborortheproduceoflabor,andthedemandforlaborcanonlymeanlaborortheproduceoflaborofferedinexchangeforlabor.Supplyisthusdemand,anddemandsupply,and,inthewholecommunity,onemustbecoextensivewiththeother.Thisisclearlyapprehendedbythecurrentpoliticaleconomyinrelationtosales,andthereasoningofRicardo,Mill,andothers,whichprovesthatalterationsinsupplyanddemandcannotproduceageneralriseorfallofvalues,thoughtheymaycauseariseorfallinthevalueofaparticularthing,isasapplicabletolabor.Whatconcealstheabsurdityofspeakinggenerallyofsupplyanddemandinreferencetolaboristhehabitofconsideringthedemandforlaborasspringingfromcapitalandassomethingdistinctfromlabor;buttheanalysistowhichthisideahasbeenheretoforesubjectedhassufficientlyshownitsfallacy.Itisindeedevidentfromthemerestatement,thatwagescanneverpermanentlyexceedtheproduceoflabor,andhencethatthereisnofundfromwhichwagescanforanytimebedrawn,savethatwhichlaborconstantlycreates.

But,thoughallthecircumstanceswhichproducethedifferencesinwagesbetweenoccupationsmaybeconsideredasoperatingthroughsupplyanddemand,they,orrather,theireffects,forsometimesthesamecauseoperatesinbothways,maybeseparatedintotwoclasses,accordingastheytendonlytoraiseapparentwagesorastheytendtoraiserealwages-thatis,toincreasetheaveragerewardforequalexertion.ThehighwagesofsomeoccupationsmuchresemblewhatAdamSmithcomparesthemto,theprizesofalottery,inwhichthegreatgainofoneismadeupfromthelossesofmanyothers.ThisisnotonlytrueoftheprofessionsbymeansofwhichDr.Smithillustratestheprinciple,butislargelytrueofthewagesofsuperintendenceinmercantilepursuits,asshownbythefactthatoverninetypercent.ofthemercantilefirmsthatcommencebusinessultimatelyfail.Thehigherwagesofthoseoccupationswhichcanbeprosecutedonlyincertainstatesoftheweather,orareotherwise

intermittentanduncertain,arealsoofthisclass;whiledifferencesthatarisefromhardship,discredit,unhealthiness,etc.,implydifferencesofsacrifice,theincreasedcompensationforwhichonlypreservesthelevelofequalreturnsforequalexertions.Allthesedifferencesare,infact,equalizations,arisingfromcircumstanceswhich,tousethewordsofAdamSmith,“makeupforasmallpecuniarygaininsomeemploymentsandcounterbalanceagreatoneinothers.”But,besidesthesemerelyapparentdifferences,therearerealdifferencesinwagesbetweenoccupations,whicharecausedbythegreaterorlessrarityofthequalitiesrequired—greaterabilitiesorskill,whethernaturaloracquired,commandingontheaveragegreaterwages.Now,thesequalities,whethernaturaloracquired,areessentiallyanalogoustodifferencesinstrengthandquicknessinmanuallabor,andasinmanuallaborthehigherwagespaidthemanwhocandomorewouldbebaseduponwagespaidtothosewhocandoonlytheaverageamount,sowagesintheoccupationsrequiringsuperiorabilitiesandskillmustdependuponthecommonwagespaidforordinaryabilitiesandskill.

Itis,indeed,evidentfromobservation,asitmustbefromtheory,thatwhateverbethecircumstanceswhichproducethedifferencesofwagesindifferentoccupations,andalthoughtheyfrequentlyvaryinrelationtoeachother,producing,asbetweentimeandtime,andplaceandplace,greaterorlessrelativedifferences,yettherateofwagesinoneoccupationisalwaysdependentontherateinanother,andsoon,down,untilthelowestandwideststratumofwagesisreached,inoccupationswherethedemandismorenearlyuniformandinwhichthereisthegreatestfreedomtoengage.

For,althoughbarriersofgreaterorlessdifficultymayexist,theamountoflaborwhichcanbedeterminedinanyparticularpursuitisnowhereabsolutelyfixed.Allmechanicscouldactaslaborers,andmanylaborerscouldreadilybecomemechanics;allstorekeeperscouldactasshopmen,andmanyshopmencouldeasilybecomestorekeepers;manyfarmerswould,uponinducement,becomehuntersorminers,fishermenorsailors,

andmanyhunters,miners,fishermen,andsailorsknowenoughoffanningtoturntheirbandstoitondemand.Ineachoccupationtherearemenwhouniteitwithothers,orwhoalternatebetweenoccupations,whiletheyoungmenwhoareconstantlycomingintofilluptheranksoflaboraredrawninthedirectionofthestrongestinducementsandleastresistances.Andfurtherthanthis,allthegradationsofwagesshadeintoeachotherbyimperceptibledegrees,insteadofbeingseparatedbyclearlydefinedgulfs.Thewages,evenofthepoorerpaidmechanics,aregenerallyhigherthanthewagesofsimplelaborers,buttherearealwayssomemechanicswhodonot,onthewhole,makeasmuchassomelaborers;thebestpaidlawyersreceivemuchhigherwagesthanthebestpaidclerks,butthebestpaidclerksmakemorethansomelawyers,andinfacttheworstpaidclerksmakemorethantheworstpaidlawyers.Thus,onthevergeofeachoccupation,standthosetowhomtheinducementsbetweenoneoccupationandanotheraresonicelybalancedthattheslightestchangeissufficienttodeterminetheirlaborinonedirectionoranother.Thus,anyincreaseordecreaseinthedemandforlaborofacertainkindcannot,excepttemporarily,raisewagesinthatoccupationabove,nordepressthembelow,therelativelevelwithwagesinotheroccupations,whichisdeterminedbythecircumstancespreviouslyadvertedto,suchasrelativeagreeablenessorcontinuityofemployment,etc.Even,asexperienceshows,whereartificialbarriersareimposedtothisinteraction,suchaslimitinglaws,guildregulations,theestablishmentofcaste,etc.,theymayinterferewith,butcannotprevent,themaintenanceofthisequilibrium.Theyoperateonlyasdams,whichpileupthewaterofastreamaboveitsnaturallevel,butcannotpreventitsoverflow.

Thus,althoughtheymayfromtimetotimealterinrelationtoeachother,asthecircumstanceswhichdeterminerelativelevelschange,yetitisevidentthatwagesinallstratamustultimatelydependuponwagesinthelowestandwideststratum—thegeneralrateofwagesrisingorfallingastheseriseorfall.

Now,theprimaryandfundamentaloccupations,uponwhich,sotospeak,

allothersarebuiltupon,areevidentlythosewhichprocurewealthdirectlyfromnature;hencethelawofwagesinthemmustbethegenerallawofwages.And,aswagesinsuchoccupationsclearlydependuponwhatlaborcanproduceatthelowestpointofnaturalproductivenesstowhichitishabituallyapplied;therefore,wagesgenerallydependuponthemarginofcultivation,or,toputitmoreexactly,uponthehighestpointofnaturalproductivenesstowhichlaborisfreetoapplyitselfwithoutthepaymentofrent.

Soobviousisthislawthatitisoftenapprehendedwithoutbeingrecognized.ItisfrequentlysaidofsuchcountriesasCaliforniaandNevadathatcheaplaborwouldenormouslyaidtheirdevelopment,asitwouldenabletheworkingofthepoorerbutmostextensivedepositsofore.Arelationbetweenlowwagesandalowpointofproductionisperceivedbythosewhotalkinthisway,buttheyinvertcauseandeffect.Itisnotlowwageswhichwillcausetheworkingoflowgradeore,buttheextensionofproductiontothelowerpointwhichwilldiminishwages.Ifwagescouldbearbitrarilyforceddown,ashassometimesbeenattemptedbystatute,thepoorermineswouldnotbeworkedsolongasricherminescouldbeworked.Butifthemarginofproductionwerearbitrarilyforceddown,asitmightbe,werethesuperiornaturalopportunitiesintheownershipofthosewhochoserathertowaitforfutureincreaseofvaluethantopermitthemtobeusednow,wageswouldnecessarilyfall.

Thedemonstrationiscomplete.Thelawofwageswehavethusobtainedisthatwhichwepreviouslyobtainedasthecorollaryofthelawofrent,anditcompletelyharmonizeswiththelawofinterest.Itis,that:

Wagesdependuponthemarginofproduction,orupontheproducewhichlaborcanobtainatthehighestpointofnaturalproductivenessopentoitwithoutthepaymentofrent.

Thislawofwagesaccordswithandexplainsuniversalfactsthatwithoutitsapprehensionseemunrelatedandcontradictory.Itshowsthat:

Wherelandisfreeandlaborisunassistedbycapital,thewholeproducewillgotolaboraswages.

Wherelandisfreeandlaborisassistedbycapital,wageswillconsistofthewholeproduce,lessthatpartnecessarytoinducethestoringupoflaborascapital.

Wherelandissubjecttoownershipandrentarises,wageswillbefixedbywhatlaborcouldsecurefromthehighestnaturalopportunitiesopentoitwithoutthepaymentofrent.

Wherenaturalopportunitiesareallmonopolized,wagesmaybeforcedbythecompetitionamonglaborerstotheminimumatwhichlaborerswillconsenttoreproduce.

Thisnecessaryminimumofwages(whichbySmithandRicardoisdenominatedthepointof“naturalwages,”andbyMillsupposedtoregulatewages,whichwillbehigherorlowerastheworkingclassesconsenttoreproduceatahigherorlowerstandardofcomfort)is,however,includedinthelawofwagesaspreviouslystated,asitisevidentthatthemarginofproductioncannotfallbelowthatpointatwhichenoughwillbeleftaswagestosecurethemaintenanceoflabor.

LikeRicardo’slawofrent,ofwhichitisthecorollary,thislawofwagescarrieswithititsownproofandbecomesself-evidentbymerestatement.Foritisbutanapplicationofthecentraltruththatisthefoundationofeconomicreasoning—thatmenwillseektosatisfytheirdesireswiththeleastexertion.Theaveragemanwillnotworkforanemployerforless,allthingsconsidered,thanhecanearnbyworkingforhimself;noryetwillheworkforhimselfforlessthanhecanearnbyworkingforanemployer,andhencethereturnwhichlaborcansecurefromsuchnaturalopportunitiesasarefreetoitmustfixthewageswhichlaboreverywheregets.Thatistosay,thelineofrentisthenecessarymeasureofthelineofwages.Infact,theacceptedlawofrentdependsforitsrecognitionupona

previous,thoughinmanycasesitseemstobeanunconscious,acceptanceofthislawofwages.Whatmakesitevidentthatlandofaparticularqualitywillyieldasrentthesurplusofitsproduceoverthatoftheleastproductivelandinuse,istheapprehensionofthefactthattheownerofthehigherqualityoflandcanprocurethelabortoworkhislandbythepaymentofwhatthatlaborcouldproduceifexerteduponlandofthepoorerquality.

Initssimplermanifestations,thislawofwagesisrecognizedbypeoplewhodonottroublethemselvesaboutpoliticaleconomy,justasthefactthataheavybodywouldfalltotheearthwaslongrecognizedbythosewhoneverthoughtofthelawofgravitation.Itdoesnotrequireaphilosophertoseethatifinanycountrynaturalopportunitieswerethrownopenwhichwouldenablelaborerstomakeforthemselveswageshigherthanthelowestnowpaid,thegeneralrateofwageswouldrise;whilethemostignorantandstupidoftheplacerminersofearlyCaliforniaknewthatastheplacersgaveoutorweremonopolized,wagesmustfall.Itrequiresnofine-spuntheorytoexplainwhywagesaresohighrelativelytoproductioninnewcountrieswherelandisyetunmonopolized.Thecauseisonthesurface.Onemanwillnotworkforanotherforlessthanhislaborwillreallyyield,whenhecangouponthenextquartersectionandtakeupafarmforhimself.Itisonlyaslandbecomesmonopolizedandthesenaturalopportunitiesareshutofffromlabor,thatlaborersareobligedtocompetewitheachotherforemployment,anditbecomespossibleforthefarmertohirehandstodohisworkwhilehemaintainshimselfonthedifferencebetweenwhattheirlaborproducesandwhathepaysthemforit.

AdamSmithhimselfsawthecauseofhighwageswherelandwasyetopentosettlement,thoughhefailedtoappreciatetheimportanceandconnectionofthefact.IntreatingoftheCausesoftheProsperityofNewColonies(Chap.VII,BookIV,“WealthofNations”)hesays:

“Everycolonistgetsmorelandthanhecanpossiblycultivate.Hehasno

rentandscarceanytaxestopay.BBHeiseager,therefore,tocollectlaborersfromeveryquarterandtopaythemthemostliberalwages.Buttheseliberalwages,joinedtotheplentyandcheapnessofland,soonmaketheselaborersleavehiminordertobecomelandlordsthemselves,andtorewardwithequalliberalityotherlaborerswhosoonleavethemforthesamereasontheylefttheirfirstmasters.”

Thischaptercontainsnumerousexpressionswhich,liketheopeningsentenceinthechapteronTheWagesofLabor,showthatAdamSmithfailedtoappreciatethetruelawsofthedistributionofwealthonlybecauseheturnedawayfromthemoreprimitiveformsofsocietytolookforfirstprinciplesamidcomplexsocialmanifestations,wherehewasblindedbyapreacceptedtheoryofthefunctionsofcapital,and,asitseemstome,byavagueacceptanceofthedoctrinewhich,twoyearsafterhisdeath,wasformulatedbyMalthus.AnditisimpossibletoreadtheworksoftheeconomistswhosincethetimeofSmithhaveendeavoredtobuildupandelucidatethescienceofpoliticaleconomywithoutseeinghow,overandoveragain,theystumbleoverthelawofwageswithoutoncerecognizingit.Yet,“ifitwereadogitwouldbitethem!”Indeed,itisdifficulttoresisttheimpressionthatsomeofthemreallysawthislawofwages,but,fearfulofthepracticalconclusionstowhichitwouldlead,preferredtoignoreandcoveritup,ratherthanuseitasthekeytoproblemswhichwithoutitaresoperplexing.Agreattruthtoanagewhichhasrejectedandtrampledonit,isnotawordofpeace,butasword!

Perhapsitmaybewelltoremindthereader,beforeclosingthischapter,ofwhathasbeenbeforestatedthatIamusingthewordwagesnotinthesenseofaquantity,butinthesenseofaproportion.WhenIsaythatwagesfallasrentrises,Idonotmeanthatthequantityofwealthobtainedbylaborersaswagesisnecessarilyless,butthattheproportionwhichitbearstothewholeproduceisnecessarilyless.Theproportionmaydiminishwhilethequantityremainsthesameorevenincreases.Ifthemarginofcultivationdescendsfromtheproductivepointwhichwewill

call25,totheproductivepointwewillcall20,therentofalllandsthatbeforepaidrentwillincreasebythisdifference,andtheproportionofthewholeproducewhichgoestolaborersaswageswilltothesameextentdiminish;butif,inthemeantime,theadvanceoftheartsortheeconomiesthatbecomepossiblewithgreaterpopulationhavesoincreasedtheproductivepoweroflaborthatat20,thesameexertionwillproduceasmuchwealthasbeforeat25,laborerswillgetaswagesasgreataquantityasbefore,andtherelativefallofwageswillnotbenoticeableinanydiminutionofthenecessariesorcomfortsofthelaborersbutonlyintheincreasedvalueoflandandthegreaterincomesandmorelavishexpenditureoftherent-receivingclass.

Thisequalizationwillbeeffectedbytheequationofprices.

Thislast,whichisanalogoustotheelementofriskinprofits,accountsforthehighwagesofsuccessfullawyers,physicians,contractors,actors,etc.

[BacktoTableofContents]

ChapterVIITheCorrelationandCo-ordinationofTheseLaws

Theconclusionswehavereachedastothelawswhichgovernthedistributionofwealthrecastalargeandmostimportantpartofthescienceofpoliticaleconomy,asatpresenttaught,overthrowingsomeofitsmosthighlyelaboratedtheoriesandsheddinganewlightonsomeofitsmostimportantproblems.Yet,indoingthis,nodisputablegroundhasbeenoccupied;notasinglefundamentalprincipleadvancedthatisnotalreadyrecognized.

Thelawofinterestandthelawofwageswhichwehavesubstitutedforthosenowtaughtarenecessarydeductionsfromthegreatlawwhichalonemakesanyscienceofpoliticaleconomypossible—theall-compellinglawthatisasinseparablefromthehumanmindasattractionisinseparablefrommatter,andwithoutwhichitwouldbeimpossibletopreviseorcalculateuponanyhumanaction,themosttrivialorthemostimportant.Thisfundamentallaw,thatmenseektogratifytheirdesireswiththeleastexertion,becomes,whenviewedinitsrelationtooneofthefactorsofproduction,thelawofrent;inrelationtoanother,thelawofinterest;andinrelationtoathird,thelawofwages.Andinacceptingthelawofrent,which,sincethetimeofRicardo,hasbeenacceptedbyeveryeconomistofstanding,andwhich,likeageometricalaxiom,hasbuttobeunderstoodtocompelassent,thelawofinterestandlawofwages,asIhavestatedthem,areinferentiallyaccepted,asitsnecessarysequences.Infact,itisonlyrelativelythattheycanbecalledsequences,asintherecognitionofthelawofrenttheytoomustberecognized.Foronwhatdependstherecognitionofthelawofrent?Evidentlyupontherecognitionofthefactthattheeffectofcompetitionistopreventthereturntolaborandcapitalbeinganywheregreaterthanuponthepoorestlandinuse.Itisinseeingthisthatweseethattheowneroflandwillbe

abletoclaimasrentallofitsproducewhichexceedswhatwouldbeyieldedtoanequalapplicationoflaborandcapitalonthepoorestlandinuse.

Theharmonyandcorrelationofthelawsofdistributionaswehavenowapprehendedthemareinstrikingcontrastwiththewantofharmonywhichcharacterizestheselawsaspresentedbythecurrentpoliticaleconomy.Letusstatethemsidebyside:

TheCurrentStatement TheTrueStatementRENTdependsonthemarginofcultivation,risingasitfallsandfallingasitrises.

RENTdependsonthemarginofcultivation,risingasitfalls,andfallingasitrises.

WAGESdependupontheratiobetweenthenumberoflaborersandtheamountofcapitaldevotedtotheiremployment.

WAGESdependonthemarginofcultivation,fallingasitfallsandrisingasitrises.

INTERESTdependsupontheequationbetweenthesupplyofanddemandforcapital;or,asisstatedofprofits,uponwages(orthecostoflabor),risingaswagesfall,andfallingaswagesrise.

INTEREST(itsratiowithwagesbeingfixedbythenetpowerofincreasewhichattachestocapital)dependsonthemarginofcultivation,fallingasitfallsandrisingasitrises.

Inthecurrentstatementthelawsofdistributionhavenocommoncenter,nomutualrelation;theyarenotthecorrelatingdivisionsofawhole,butmeasuresofdifferentqualities.Inthestatementwehavegiven,theyspringfromonepoint,supportandsupplementeachother,andformthecorrelatingdivisionsofacompletewhole.

[BacktoTableofContents]

ChapterVIIITheStaticsoftheProblemThusExplained

Wehavenowobtainedaclear,simple,andconsistenttheoryofthedistributionofwealth,whichaccordswithfirstprinciplesandexistingfacts,andwhich,whenunderstood,willcommenditselfasself-evident.

Beforeworkingoutthistheory,Ihavedeemeditnecessarytoshowconclusivelytheinsufficiencyofcurrenttheories;for,inthought,asinaction,themajorityofmendobutfollowtheirleaders,andatheoryofwageswhichhasnotmerelythesupportofthehighestnames,butisfirmlyrootedincommonopinionsandprejudices,will,untilithasbeenproveduntenable,preventanyothertheoryfrombeingevenconsidered,justasthetheorythattheearthwasthecenteroftheuniversepreventedanyconsiderationofthetheorythatitrevolvesonitsownaxisandcirclesroundthesun,untilitwasclearlyshownthattheapparentmovementsoftheheavenlybodiescouldnotbeexplainedinaccordancewiththetheoryofthefixityoftheearth.

Thereisintruthamarkedresemblancebetweenthescienceofpoliticaleconomy,asatpresenttaught,andthescienceofastronomy,astaughtprevioustotherecognitionoftheCopernicantheory.Thedevicesbywhichthecurrentpoliticaleconomyendeavorstoexplainthesocialphenomenathatarenowforcingthemselvesupontheattentionofthecivilizedworldmaywellbecomparedtotheelaboratesystemofcyclesandepicyclesconstructedbythelearnedtoexplainthecelestialphenomenainamanneraccordingwiththedogmasofauthorityandtherudeimpressionsandprejudicesoftheunlearned.And,justastheobservationswhichshowedthatthistheoryofcyclesandepicyclescouldnotexplainallthephenomenaoftheheavensclearedthewayfortheconsiderationofthesimplertheorythatsupplantedit,sowillarecognitionoftheinadequacyofthecurrenttheoriestoaccountforsocial

phenomenaclearthewayfortheconsiderationofatheorythatwillgivetopoliticaleconomyallthesimplicityandharmonywhichtheCopernicantheorygavetothescienceofastronomy.

Butatthispointtheparallelceases.That“thefixedandsteadfastearth”shouldbereallywhirlingthroughspacewithinconceivablevelocityisrepugnanttothefirstapprehensionsofmenineverystateandsituation;butthetruthIwishtomakeclearisnaturallyperceived,andhasbeenrecognizedintheinfancyofeverypeople,beingobscuredonlybythecomplexitiesofthecivilizedstate,thewarpingsofselfishinterests,andthefalsedirectionwhichthespeculationsofthelearnedhavetaken.Torecognizeit,wehavebuttocomebacktofirstprinciplesandheedsimpleperceptions.Nothingcanbeclearerthanthepropositionthatthefailureofwagestoincreasewithincreasingproductivepowerisduetotheincreaseofrent.

Threethingsunitetoproduction—labor,capital,andland.

Threepartiesdividetheproduce—thelaborer,thecapitalist,andthelandowner.

If,withanincreaseofproductionthelaborergetsnomoreandthecapitalistnomore,itisanecessaryinferencethatthelandownerreapsthewholegain.

Andthefactsagreewiththeinference.Thoughneitherwagesnorinterestanywhereincreaseasmaterialprogressgoeson,yettheinvariableaccompanimentandmarkofmaterialprogressistheincreaseofrent—theriseoflandvalues.

Theincreaseofrentexplainswhywagesandinterestdonotincrease.Thecausewhichgivestothelandholderisthecausewhichdeniestothelaborerandcapitalist.Thatwagesandinterestarehigherinnewthaninoldcountriesisnot,asthestandardeconomistssay,becausenature

makesagreaterreturntotheapplicationoflaborandcapital,butbecauselandischeaper,and,therefore,asasmallerproportionofthereturnistakenbyrent,laborandcapitalcankeepfortheirsharealargerproportionofwhatnaturedoesreturn.Itisnotthetotalproduce,butthenetproduce,afterrenthasbeentakenfromit,thatdetermineswhatcanbedividedaswagesandinterest.Hence,therateofwagesandinterestiseverywherefixed,notsomuchbytheproductivenessoflaborasbythevalueofland.Whereverthevalueoflandisrelativelylow,wagesandinterestarerelativelyhigh;whereverlandisrelativelyhigh,wagesandinterestarerelativelylow.

Ifproductionhadnotpassedthesimplestageinwhichalllaborisdirectlyappliedtothelandandallwagesarepaidinitsproduce,thefactthatwhenthelandownertakesalargerportionthelaborermustputupwithasmallerportioncouldnotbelostsightof.

Butthecomplexitiesofproductioninthecivilizedstate,inwhichsogreatapartisbornebyexchange,andsomuchlaborisbestoweduponmaterialsaftertheyhavebeenseparatedfromtheland,thoughtheymaytotheunthinkingdisguise,donotalterthefactthatallproductionisstilltheunionofthetwofactors,landandlabor,andthatrent(theshareofthelandholder)cannotbeincreasedexceptattheexpenseofwages(theshareofthelaborer)andinterest(theshareofcapital).Justastheportionofthecrop,whichinthesimplerformsofindustrialorganizationtheownerofagriculturallandreceivesattheendoftheharvestashisrent,lessenstheamountlefttothecultivatoraswagesandinterest,sodoestherentaloflandonwhichamanufacturingorcommercialcityisbuiltlessentheamountwhichcanbedividedaswagesandinterestbetweenthelaborerandcapitalthereengagedintheproductionandexchangeofwealth.

Inshort,thevalueoflanddependingwhollyuponthepowerwhichitsownershipgivesofappropriatingwealthcreatedbylabor,theincreaseoflandvaluesisalwaysattheexpenseofthevalueoflabor.And,hence,

thattheincreaseofproductivepowerdoesnotincreasewages,isbecauseitdoesincreasethevalueofland.Rentswallowsupthewholegainandpauperismaccompaniesprogress.

Itisunnecessarytorefertofacts.Theywillsuggestthemselvestothereader.Itisthegeneralfact,observableeverywhere,thatasthevalueoflandincreases,sodoesthecontrastbetweenwealthandwantappear.Itistheuniversalfact,thatwherethevalueoflandishighest,civilizationexhibitsthegreatestluxurysidebysidewiththemostpiteousdestitution.Toseehumanbeingsinthemostabject,themosthelplessandhopelesscondition,youmustgo,nottotheunfencedprairiesandthelogcabinsofnewclearingsinthebackwoods,wheremansingle-handediscommencingthestrugglewithnature,andlandisyetworthnothing,buttothegreatcities,wheretheownershipofalittlepatchofgroundisafortune.

[BacktoTableofContents]

BookIVEffectofMaterialProgressUpontheDistributionofWealth

ChapterI.TheDynamicsoftheProblemYettoSeekChapterII.TheEffectofIncreaseofPopulationUpontheDistributionofWealthChapterIII.TheEffectofImprovementsintheArtsupontheDistributionofWealthChapterIV.EffectoftheExpectationRaisedbyMaterialProgress

Hitherto,itisquestionableifallthemechanicalinventionsyetmadehavelightenedtheday’stoilofanyhumanbeing.

JohnStuartMill.

Doyehearthechildrenweeping,Omybrothers,Erethesorrowcomeswithyears?Theyareleaningtheiryoungheadsagainsttheirmothers,Andthatcannotstoptheirtears.Theyounglambsarebleatinginthemeadows;Theyoungbirdsarechirpinginthenest;Theyoungfawnsareplayingwiththeshadows;Theyoungflowersareblowingtowardthewest—Buttheyoung,youngchildren,O,mybrothers,Theyareweepingbitterly!Theyareweepingintheplaytimeoftheothers,Inthecountryofthefree.

—Mrs.Browning.

[BacktoTableofContents]

ChapterITheDynamicsoftheProblemYettoSeek

Inidentifyingrentasthereceiveroftheincreasedproductionwhichmaterialprogressgives,butwhichlaborfailstoobtain;inseeingthattheantagonismofinterestsisnotbetweenlaborandcapital,asispopularlybelieved,butisinrealitybetweenlaborandcapitalontheonesideandlandownershipontheother,wehavereachedaconclusionthathasmostimportantpracticalbearings.Butitisnotworthwhiletodwellonthemnow,forwehavenotyetfullysolvedtheproblemwhichwasattheoutsetproposed.Tosaythatwagesremainlowbecauserentadvancesislikesayingthatasteamboatmovesbecauseitswheelsturnaround.Thefurtherquestionis,whatcausesrenttoadvance?Whatistheforceornecessitythat,asproductivepowerincreases,distributesagreaterandgreaterproportionoftheproduceasrent?

TheonlycausepointedoutbyRicardoasadvancingrentistheincreaseofpopulation,whichbyrequiringlargersuppliesoffoodnecessitatestheextensionofcultivationtoinferiorlands,ortopointsofinferiorproductiononthesamelands,andincurrentworksofotherauthorsattentionissoexclusivelydirectedtotheextensionofproductionfromsuperiortoinferiorlandsasthecauseofadvancingrentsthatMr.Carey(followedbyProfessorPerryandothers)hasimaginedthathehasoverthrowntheRicardiantheoryofrentbydenyingthattheprogressofagricultureisfrombettertoworselands.

Now,whileitisunquestionablytruethattheincreasingpressureofpopulationwhichcompelsaresorttoinferiorpointsofproductionwillraiserents,anddoesraiserents,Idonotthinkthatallthedeductionscommonlymadefromthisprinciplearevalid,noryetthatitfullyaccountsfortheincreaseofrentasmaterialprogressgoeson.Thereareevidentlyothercauseswhichconspiretoraiserent,butwhichseemto

havebeenwhollyorpartiallybiddenbytheerroneousviewsastothefunctionsofcapitalandgenesisofwageswhichhavebeencurrent.Toseewhattheseare,andhowtheyoperate,letustracetheeffectofmaterialprogressuponthedistributionofwealth.

Thechangeswhichconstituteorcontributetomaterialprogressarethree:(1)increaseinpopulation;(2)improvementsintheartsofproductionandexchange;and(3)improvementsinknowledge,education,government,police,manners,andmorals,sofarastheyincreasethepowerofproducingwealth.Materialprogress,ascommonlyunderstood,consistsofthesethreeelementsordirectionsofprogression,inallofwhichtheprogressivenationshaveforsometimepastbeenadvancing,thoughindifferentdegrees.As,consideredinthelightofmaterialforcesoreconomies,theincreaseofknowledge,thebettermentofgovernment,etc.,havethesameeffectasimprovementsinthearts,itwillnotbenecessaryinthisviewtoconsiderthemseparately.Whatbearingintellectualormoralprogress,merelyassuch,hasuponourproblemwemayhereafterconsider.Weareatpresentdealingwithmaterialprogress,towhichthesethingscontributeonlyastheyincreasewealth-producingpower,andshallseetheireffectswhenweseetheeffectofimprovementsinthearts.

Toascertaintheeffectsofmaterialprogressuponthedistributionofwealth,letus,therefore,considertheeffectsofincreaseofpopulationapartfromimprovementinthearts,andthentheeffectofimprovementintheartsapartfromincreaseofpopulation.

Astothis,itmaybeworthwhiletosay:(1)Thatthegeneralfact,asshownbytheprogressofagricultureinthenewerstatesoftheUnionandbythecharacterofthelandleftoutofcultivationintheolder,isthatthecourseofcultivationisfromthebettertotheworsequalitiesofland.(2)That,whetherthecourseofproductionbefromtheabsolutelybettertotheabsolutelyworselandsorthereverse(andthereismuchtoindicatethatbetterorworseinthisconnectionmerelyrelatestoourknowledge,

andthatfutureadvancesmaydiscovercompensatingqualitiesinportionsoftheearthnowesteemedmoststerile),itisalways,andfromthenatureofthehumanmind,mustalwaystendtobe,fromlandunderexistingconditionsdeemedbetter,tolandunderexistingconditionsdeemedworse.(3)ThatRicardo’slawofrentdoesnotdependuponthedirectionoftheextensionofcultivation,butuponthepropositionthatiflandofacertainqualitywillyieldsomething,landofabetterqualitywillyieldmore.

[BacktoTableofContents]

ChapterIITheEffectofIncreaseofPopulationUpontheDistributionofWealth

Themannerinwhichincreasingpopulationadvancesrent,asexplainedandillustratedincurrenttreatises,isthattheincreaseddemandforsubsistenceforcesproductiontoinferiorsoilortoinferiorproductivepoints.Thus,if,withagivenpopulation,themarginofcultivationisat30,alllandsofproductivepowerover30willpayrent.Ifthepopulationbedoubled,anadditionalsupplyisrequired,whichcannotbeobtainedwithoutanextensionofcultivationthatwillcauselandstoyieldrentthatbeforeyieldednone.Iftheextensionbeto20,thenallthelandbetween20and30willyieldrentandhaveavalue,andalllandover30willyieldincreasedrentandhaveincreasedvalue.

ItisherethattheMalthusiandoctrinereceivesfromthecurrentelucidationsofthetheoryofrentthesupportofwhichIspokewhenenumeratingthecausesthathavecombinedtogivethatdoctrineanalmostundisputedswayincurrentthought.AccordingtotheMalthusiantheory,thepressureofpopulationagainstsubsistencebecomesprogressivelyharderaspopulationincreases,andalthoughtwohandscomeintotheworldwitheverynewmouth,itbecomes,tousethelanguageofJohnStuartMill,harderandharderforthenewhandstosupplythenewmouths.AccordingtoRicardo’stheoryofrent,rentarisesfromthedifferenceinproductivenessofthelandsinuse,andasexplainedbyRicardoandtheeconomistswhohavefollowedhim,theadvanceinrentswhich,experienceshows,accompaniesincreasingpopulation,iscausedbytheinabilityofprocuringmorefoodexceptatagreatercost,whichthusforcesthemarginofpopulationtolowerandlowerpointsofproduction,commensuratelyincreasingrent.Thusthetwotheories,asIhavebeforeexplained,aremadetoharmonizeandblend,

thelawofrentbecomingbutaspecialapplicationofthemoregenerallawpropoundedbyMalthus,andtheadvanceofrentswithincreasingpopulationademonstrationofitsresistlessoperation.Irefertothisincidentally,becauseitnowliesinourwaytoseethemisapprehensionwhichhasenlistedthedoctrineofrentinthesupportofatheorytowhichitinrealitygivesnocountenance.TheMalthusiantheoryhasbeenalreadydisposedof,andthecumulativedisproofwhichwillpreventtherecurrenceofalingeringdoubtwillbegivenwhenitisshown,furtheron,thatthephenomenaattributedtothepressureofpopulationagainstsubsistencewould,underexistingconditions,manifestthemselveswerepopulationtoremainstationary.

ThemisapprehensiontowhichInowrefer,andwhich,toaproperunderstandingoftheeffectofincreaseofpopulationuponthedistributionofwealth,itisnecessarytoclearup,isthepresumption,expressedorimpliedinallthecurrentreasoninguponthesubjectofrentinconnectionwithpopulation,thattherecoursetolowerpointsofproductioninvolvesasmalleraggregateproduceinproportiontothelaborexpended;thoughthatthisisnotalwaysthecaseisclearlyrecognizedinconnectionwithagriculturalimprovements,which,tousethewordsofMill,areconsidered“asapartialrelaxationofthebondswhichconfinetheincreaseofpopulation.”Butitisnotinvolvedevenwherethereisnoadvanceinthearts,andtherecoursetolowerpointsofproductionisclearlytheresultoftheincreaseddemandofanincreasedpopulation.Forincreasedpopulation,ofitself,andwithoutanyadvanceinthearts,impliesanincreaseintheproductivepoweroflabor.Thelaborof100men,otherthingsbeingequal,willproducemuchmorethanonehundredtimesasmuchasthelaborofoneman,andthelaborof1,000menmuchmorethantentimesasmuchasthelaborof100men;and,so,witheveryadditionalpairofhandswhichincreasingpopulationbrings,thereisamorethanproportionateadditiontotheproductivepoweroflabor.Thus,withanincreasingpopulation,theremaybearecoursetolowernaturalpowersofproduction,notonlywithoutanydiminutionintheaverageproductionofwealthascomparedtolabor,butwithoutanydiminutionat

thelowestpoint.Ifpopulationbedoubled,landofbut20productivenessmayyieldtothesameamountoflaborasmuchaslandof30productivenesscouldbeforeyield.Foritmustnotbeforgotten(whatoftenisforgotten)thattheproductivenesseitheroflandorlaborisnottobemeasuredinanyonething,butinalldesiredthings.Asettlerandhisfamilymayraiseasmuchcornonlandahundredmilesawayfromthenearesthabitationastheycouldraiseweretheirlandinthecenterofapopulousdistrict.Butinthepopulousdistricttheycouldobtainwiththesamelaborasgoodalivingfrommuchpoorerland,orfromlandofequalqualitycouldmakeasgoodalivingafterpayingahighrent,becauseinthemidstofalargepopulationtheirlaborwouldhavebecomemoreeffective;not,perhaps,intheproductionofcorn,butintheproductionofwealthgenerally—ortheobtainingofallthecommoditiesandserviceswhicharetherealobjectoftheirlabor.

Butevenwherethereisadiminutionintheproductivenessoflaboratthelowestpoint—thatistosay,wheretheincreasingdemandforwealthhasdrivenproductiontoalowerpointofnaturalproductivenessthantheadditiontothepoweroflaborfromincreasingpopulationsufficestomakeupfor—itdoesnotfollowthattheaggregateproduction,ascomparedwiththeaggregatelabor,hasbeenlessened.

Letussupposelandofdiminishingqualities.Thebestwouldnaturallybesettledfirst,andaspopulationincreasedproductionwouldtakeinthenextlowerquality,andsoon.But,astheincreaseofpopulation,bypermittinggreatereconomies,addstotheeffectivenessoflabor,thecausewhichbroughteachqualityoflandsuccessivelyintocultivationwouldatthesametimeincreasetheamountofwealththatthesamequantityoflaborcouldproducefromit.Butitwouldalsodomorethanthis—itwouldincreasethepowerofproducingwealthonallthesuperiorlandsalreadyincultivation.Iftherelationsofquantityandqualityweresuchthatincreasingpopulationaddedtotheeffectivenessoflaborfasterthanitcompelledaresorttolessproductivequalitiesofland,thoughthemarginofcultivationwouldfallandrentwouldrise,theminimumreturn

tolaborwouldincrease.Thatistosay,thoughwagesasaproportionwouldfall,wagesasaquantitywouldrise.Theaverageproductionofwealthwouldincrease.Iftherelationsweresuchthattheincreasingeffectivenessoflaborjustcompensatedforthediminishingproductivenessofthelandasitwascalledintouse,theeffectofincreasingpopulationwouldbetoincreaserentbyloweringthemarginofcultivationwithoutreducingwagesasaquantity,andtoincreasetheaverageproduction.Ifwenowsupposepopulationstillincreasing,but,betweenthepoorestqualityoflandinuseandthenextlowerquality,tobeadifferencesogreatthattheincreasedpoweroflaborwhichcomeswiththeincreasedpopulationthatbringsitintocultivationcannotcompensateforit—theminimumreturntolaborwillbereduced,andwiththeriseofrents,wageswillfall,notonlyasaproportion,butasaquantity.Butunlessthedescentinthequalityoflandisfarmoreprecipitousthanwecanwellimagine,orthan,Ithink,everexists,theaverageproductionwillstillbeincreased,fortheincreasedeffectivenesswhichcomesbyreasonoftheincreasedpopulationthatcompelsresorttotheinferiorqualityoflandattachestoalllabor,andthegainonthesuperiorqualitiesoflandwillmorethancompensateforthediminishedproductiononthequalitylastbroughtin.Theaggregatewealthproduction,ascomparedwiththeaggregateexpenditureoflabor,willbegreater,thoughitsdistributionwillbemoreunequal.

Thus,increaseofpopulation,asitoperatestoextendproductiontolowernaturallevels,operatestoincreaserentandreducewagesasaproportion,andmayormaynotreducewagesasaquantity;whileitseldomcan,andprobablyneverdoes,reducetheaggregateproductionofwealthascomparedwiththeaggregateexpenditureoflabor,butonthecontraryincreases,andfrequentlylargelyincreasesit.

Butwhiletheincreaseofpopulationthusincreasesrentbyloweringthemarginofcultivation,itisamistaketolookuponthisastheonlymodebywhichrentadvancesaspopulationgrows.Increasingpopulationincreasesrent,withoutreducingthemarginofcultivation;and

notwithstandingthedictaofsuchwritersasMcCulloch,whoassertthatrentwouldnotarisewerethereanunboundedextentofequallygoodland,increasesitwithoutreferencetothenaturalqualitiesofland,fortheincreasedpowersofco-operationandexchangewhichcomewithincreasedpopulationareequivalentto—nay,Ithinkwecansaywithoutmetaphor,thattheygive—anincreasedcapacitytoland.

Idonotmeantosaymerelythat,likeanimprovementinthemethodsortoolsofproduction,theincreasedpowerwhichcomeswithincreasedpopulationgivestothesamelaboranincreasedresult,whichisequivalenttoanincreaseinthenaturalpowersofland;butthatitbringsoutasuperiorpowerinlabor,whichislocalizedonland—whichattachesnottolaborgenerally,butonlytolaborexertedonparticularland;andwhichthusinheresinthelandasmuchasanyqualitiesofsoil,climate,mineraldeposit,ornaturalsituation,andpasses,astheydo,withthepossessionoftheland.

Animprovementinthemethodofcultivationwhich,withthesameoutlay,willgivetwocropsayearinplaceofone,oranimprovementintoolsandmachinerywhichwilldoubletheresultoflabor,willmanifestly,onaparticularpieceofground,havethesameeffectontheproduceasadoublingofthefertilityoftheland.Butthedifferenceisinthisrespect—theimprovementinmethodorintoolscanbeutilizedonanyland;buttheimprovementinfertilitycanbeutilizedonlyontheparticularlandtowhichitapplies.Now,inlargepart,theincreasedproductivenessoflaborwhicharisesfromincreasedpopulationcanbeutilizedonlyonparticularland,andonparticularlandingreatlyvaryingdegrees.

Here,letusimagine,isanunboundedsavannah,stretchingoffinunbrokensamenessofgrassandflower,treeandrill,tillthetravelertiresofthemonotony.Alongcomesthewagonofthefirstimmigrant.Wheretosettlehecannottell—everyacreseemsasgoodaseveryotheracre.Astowood,astowater,astofertility,astosituation,thereisabsolutelyno

choice,andheisperplexedbytheembarrassmentofrichness.Tiredoutwiththesearchforoneplacethatisbetterthananother,hestops—somewhere,anywhere—andstartstomakehimselfahome.Thesoilisvirginandrich,gameisabundant,thestreamsflashwiththefinesttrout.Natureisatherverybest.Hehaswhat,wereheinapopulousdistrict,wouldmakehimrich;butheisverypoor.Tosaynothingofthementalcraving,whichwouldleadhimtowelcomethesorrieststranger,helaborsunderallthematerialdisadvantagesofsolitude.Hecangetnotemporaryassistanceforanyworkthatrequiresagreaterunionofstrengththanthataffordedbyhisownfamily,orbysuchhelpashecanpermanentlykeep.Thoughhehascattle,hecannotoftenhavefreshmeat,fortogetabeefsteakhemustkillabullock.Hemustbehisownblacksmith,wagonmaker,carpenter,andcobbler—inshort,a“jackofalltradesandmasterofnone.”Hecannothavehischildrenschooled,for,todoso,hemusthimselfpayandmaintainateacher.Suchthingsashecannotproducehimself,hemustbuyinquantitiesandkeeponhand,orelsegowithout,forhecannotbeconstantlyleavinghisworkandmakingalongjourneytothevergeofcivilization;andwhenforcedtodoso,thegettingofavialofmedicineorthereplacementofabrokenaugermaycosthimthelaborofhimselfandhorsesfordays.Undersuchcircumstances,thoughnatureisprolific,themanispoor.Itisaneasymatterforhimtogetenoughtoeat;butbeyondthis,hislaborwillsufficetosatisfyonlythesimplestwantsintherudestway.

Soontherecomesanotherimmigrant.Althougheveryquartersectionoftheboundlessplainisasgoodaseveryotherquartersection,heisnotbesetbyanyembarrassmentastowheretosettle.Thoughthelandisthesame,thereisoneplacethatisclearlybetterforhimthananyotherplace,andthatiswherethereisalreadyasettlerandhemayhaveaneighbor.Hesettlesbythesideofthefirstcomer,whoseconditionisatoncegreatlyimproved,andtowhommanythingsarenowpossiblethatwerebeforeimpossible,fortwomenmayhelpeachothertodothingsthatonemancouldneverdo.

Anotherimmigrantcomes,and,guidedbythesameattraction,settleswheretherearealreadytwo.Another,andanother,untilaroundourfirstcomerthereareascoreofneighbors.Laborhasnowaneffectivenesswhich,inthesolitarystate,itcouldnotapproach.Ifheavyworkistobedone,thesettlershavealog-rolling,andtogetheraccomplishinadaywhatsinglywouldrequireyears.Whenonekillsabullock,theotherstakepartofit,returningwhentheykill,andthustheyhavefreshmeatallthetime.Togethertheyhireaschoolmaster,andthechildrenofeacharetaughtforafractionalpartofwhatsimilarteachingwouldhavecostthefirstsettler.Itbecomesacomparativelyeasymattertosendtothenearesttown,forsomeoneisalwaysgoing.Butthereislessneedforsuchjourneys.Ablacksmithandawheelwrightsoonsetupshops,andoursettlercanhavehistoolsrepairedforasmallpartofthelaboritformerlycosthim.Astoreisopenedandhecangetwhathewantsashewantsit;apost-office,soonadded,giveshimregularcommunicationwiththerestoftheworld.Thencomeacobbler,acarpenter,aharness-maker,adoctor;andalittlechurchsoonarises.Satisfactionsbecomepossiblethatinthesolitarystatewereimpossible.Therearegratificationsforthesocialandtheintellectualnature—forthatpartofthemanthatrisesabovetheanimal.Thepowerofsympathy,thesenseofcompanionship,theemulationofcomparisonandcontrast,openawider,andfuller,andmorevariedlife.Inrejoicing,thereareotherstorejoice;insorrow,themournersdonotmournalone.Therearehusking-bees,andappleparings,andquiltingparties.Thoughtheballroombeunplasteredandtheorchestrabutafiddle,thenotesofthemagicianareyetinthestrain,andCupiddanceswiththedancers.Atthewedding,thereareotherstoadmireandenjoy;inthehouseofdeath,therearewatchers;bytheopengrave,standshumansympathytosustainthemourners.Occasionally,comesastragglinglecturertoopenupglimpsesoftheworldofscience,ofliterature,orofart;inelectiontimes,comestumpspeakers,andthecitizenrisestoasenseofdignityandpower,asthecauseofempiresistriedbeforehiminthestruggleofJohnDoeandRichardRoeforhissupportandvote.And,byandby,comesthecircus,talkedofmonthsbefore,andopeningtochildrenwhosehorizonhasbeentheprairie,allthe

realmsoftheimagination—princesandprincessesoffairytale,mail-cladcrusadersandturbanedMoors,Cinderella’sfairycoach,andthegiantsofnurserylore;lionssuchascrouchedbeforeDaniel,orincirclingRomanamphitheatertorethesaintsofGod;ostricheswhorecallthesandydeserts;camelssuchasstoodaroundwhenthewickedbrethrenraisedJosephfromthewellandsoldhimintobondage;elephantssuchascrossedtheAlpswithHannibal,orfelttheswordoftheMaccabees;andgloriousmusicthatthrillsandbuildsinthechambersofthemindasrosethesunnydomeofKublaKhan.

Gotooursettlernow,andsaytohim:“Youhavesomanyfruittreeswhichyouplanted;somuchfencing,suchawell,abarn,ahouse—inshort,youhavebyyourlaboraddedsomuchvaluetothisfarm.Yourlanditselfisnotquitesogood.Youhavebeencroppingit,andbyandbyitwillneedmanure.Iwillgiveyouthefullvalueofallyourimprovementsifyouwillgiveittome,andgoagainwithyourfamilybeyondthevergeofsettlement.”Hewouldlaughatyou.Hislandyieldsnomorewheatorpotatoesthanbefore,butitdoesyieldfarmoreofallthenecessariesandcomfortsoflife.Hislaboruponitwillbringnoheaviercrops,and,wewillsuppose,nomorevaluablecrops,butitwillbringfarmoreofalltheotherthingsforwhichmenwork.Thepresenceofothersettlers—theincreaseofpopulation—hasaddedtotheproductiveness,inthesethings,oflaborbestoweduponit,andthisaddedproductivenessgivesitasuperiorityoverlandofequalnaturalqualitywherethereareasyetnosettlers.Ifnolandremainstobetakenup,exceptsuchasisasfarremovedfrompopulationaswasoursettler’slandwhenhefirstwentuponit,thevalueorrentofthislandwillbemeasuredbythewholeofthisaddedcapability.If,however,aswehavesupposed,thereisacontinuousstretchofequalland,overwhichpopulationisnowspreading,itwillnotbenecessaryforthenewsettlertogointothewilderness,asdidthefirst.Hewillsettlejustbeyondtheothersettlers,andwillgettheadvantageofproximitytothem.Thevalueorrentofoursettler’slandwillthusdependontheadvantagewhichithas,frombeingatthecenterofpopulation,overthatontheverge.Intheonecase,the

marginofproductionwillremainasbefore;intheother,themarginofproductionwillberaised.

Populationstillcontinuestoincrease,andasitincreasessodotheeconomieswhichitsincreasepermits,andwhichineffectaddtotheproductivenessoftheland.Ourfirstsettler’sland,beingthecenterofpopulation,thestore,theblacksmith’sforge,thewheelwright’sshop,aresetuponit,oronitsmargin,wheresoonarisesavillage,whichrapidlygrowsintoatown,thecenterofexchangesforthepeopleofthewholedistrict.Withnogreateragriculturalproductivenessthanithadatfirst,thislandnowbeginstodevelopaproductivenessofahigherkind.Tolaborexpendedinraisingcorn,orwheat,orpotatoes,itwillyieldnomoreofthosethingsthanatfirst;buttolaborexpendedinthesubdividedbranchesofproductionwhichrequireproximitytootherproducers,and,especially,tolaborexpendedinthatfinalpartofproduction,whichconsistsindistribution,itwillyieldmuchlargerreturns.Thewheat-growermaygofurtheron,andfindlandonwhichhislaborwillproduceasmuchwheat,andnearlyasmuchwealth;buttheartisan,themanufacturer,thestorekeeper,theprofessionalman,findthattheirlaborexpendedhere,atthecenterofexchanges,willyieldthemmuchmorethanifexpendedevenatalittledistanceawayfromit;andthisexcessofproductivenessforsuchpurposesthelandownercanclaimjustashecouldanexcessinitswheat-producingpower.Andsooursettlerisabletosellinbuildinglotsafewofhisacresforpriceswhichitwouldnotbringforwheat-growingifitsfertilityhadbeenmultipliedmanytimes.Withtheproceeds,hebuildshimselfafinehouse,andfurnishesithandsomely.Thatistosay,toreducethetransactiontoitslowestterms,thepeoplewhowishtousethelandbuildandfurnishthehouseforhim,onconditionthathewillletthemavailthemselvesofthesuperiorproductivenesswhichtheincreaseofpopulationhasgiventheland.

Populationstillkeepsonincreasing,givinggreaterandgreaterutilitytotheland,andmoreandmorewealthtoitsowner.Thetownhasgrownintoacity—aSt.Louis,aChicagooraSanFrancisco—andstillitgrows.

Productionisherecarriedonuponagreatscale,withthebestmachineryandthemostfavorablefacilities;thedivisionoflaborbecomesextremelyminute,wonderfullymultiplyingefficiency;exchangesareofsuchvolumeandrapiditythattheyaremadewiththeminimumoffrictionandloss.Hereistheheart,thebrain,ofthevastsocialorganismthathasgrownupfromthegermofthefirstsettlement;herehasdevelopedoneofthegreatgangliaofthehumanworld.Hitherrunallroads,hithersetallcurrents,throughallthevastregionsroundabout.Here,ifyouhaveanythingtosell,isthemarket;here,ifyouhaveanythingtobuy,isthelargestandthechoiceststock.Hereintellectualactivityisgatheredintoafocus,andherespringsthatstimuluswhichisbornofthecollisionofmindwithmind.Herearethegreatlibraries,thestorehousesandgranariesofknowledge,thelearnedprofessors,thefamousspecialists.Herearemuseumsandartgalleries,collectionsofphilosophicalapparatus,andallthingsrare,andvaluable,andbestoftheirkind.Herecomegreatactors,andorators,andsingers,fromallovertheworld.Here,inshort,isacenterofhumanlife,inallitsvariedmanifestations.

Soenormousaretheadvantageswhichthislandnowoffersfortheapplicationoflabor,thatinsteadofoneman—withaspanofhorsesscratchingoveracres,youmaycountinplacesthousandsofworkerstotheacre,workingtierontier,onfloorsraisedoneabovetheother,five,six,sevenandeightstoriesfromtheground,whileunderneaththesurfaceoftheearthenginesarethrobbingwithpulsationsthatexerttheforceofthousandsofhorses.

Alltheseadvantagesattachtotheland;itisonthislandandnootherthattheycanbeutilized,forhereisthecenterofpopulation—thefocusofexchanges,themarketplaceandworkshopofthehighestformsofindustry.Theproductivepowerswhichdensityofpopulationhasattachedtothislandareequivalenttothemultiplicationofitsoriginalfertilitybythehundredfoldandthethousandfold.Andrent,whichmeasuresthedifferencebetweenthisaddedproductivenessandthatoftheleastproductivelandinuse,hasincreasedaccordingly.Oursettler,orwhoever

hassucceededtohisrighttotheland,isnowamillionaire.LikeanotherRipVanWinkle,hemayhavelaindownandslept;stillheisrich—notfromanythinghehasdone,butfromtheincreaseofpopulation.Therearelotsfromwhichforeveryfootoffrontagetheownermaydrawmorethananaveragemechaniccanearn;therearelotsthatwillsellformorethanwouldsufficetopavethemwithgoldcoin.Intheprincipalstreetsaretoweringbuildings,ofgranite,marble,iron,andplateglass,finishedinthemostexpensivestyle,repletewitheveryconvenience.Yettheyarenotworthasmuchasthelanduponwhichtheyrest—thesameland,innothingchanged,whichwhenourfirstsettlercameuponithadnovalueatall.

Thatthisisthewayinwhichtheincreaseofpopulationpowerfullyactsinincreasingrent,whoever,inaprogressivecountry,willlookaroundhim,mayseeforhimself.Theprocessisgoingonunderhiseyes.Theincreasingdifferenceintheproductivenessofthelandinuse,whichcausesanincreasingriseinrent,resultsnotsomuchfromthenecessitiesofincreasedpopulationcompellingtheresorttoinferiorland,asfromtheincreasedproductivenesswhichincreasedpopulationgivestothelandsalreadyinuse.Themostvaluablelandsontheglobe,thelandswhichyieldthehighestrent,arenotlandsofsurpassingnaturalfertility,butlandstowhichasurpassingutilityhasbeengivenbytheincreaseofpopulation.

Theincreaseofproductivenessorutilitywhichincreaseofpopulationgivestocertainlands,inthewaytowhichIhavebeencallingattention,attaches,asitwere,tothemerequalityofextension.Thevaluablequalityoflandthathasbecomeacenterofpopulationisitssuperficialcapacity—itmakesnodifferencewhetheritisfertile,alluvialsoillikethatofPhiladelphia,richbottomlandlikethatofNewOrleans;afilled-inmarshlikethatofSt.Petersburg,orasandywastelikethegreaterpartofSanFrancisco.

Andwherevalueseemstoarisefromsuperiornaturalqualities,suchas

deepwaterandgoodanchorage,richdepositsofcoalandiron,orheavytimber,observationalsoshowsthatthesesuperiorqualitiesarebroughtout,renderedtangible,bypopulation.ThecoalandironfieldsofPennsylvania,thatto-dayareworthenormoussums,werefiftyyearsagovalueless.Whatistheefficientcauseofthedifference?Simplythedifferenceinpopulation.ThecoalandironbedsofWyomingandMontana,whichto-dayarevalueless,will,infiftyyearsfromnow,beworthmillionsonmillions,simplybecause,inthemeantime,populationwillhavegreatlyincreased.

Itisawell-provisionedship,thisonwhichwesailthroughspace.Ifthebreadandbeefabovedecksseemtogrowscarce,webutopenahatchandthereisanewsupply,ofwhichbeforeweneverdreamed.Andverygreatcommandovertheservicesofotherscomestothosewhoasthehatchesareopenedarepermittedtosay,“Thisismine!”

Torecapitulate:Theeffectofincreasingpopulationuponthedistributionofwealthistoincreaserent,andconsequentlytodiminishtheproportionoftheproducewhichgoestocapitalandlabor,intwoways:First,byloweringthemarginofcultivation.Second,bybringingoutinlandspecialcapabilitiesotherwiselatent,andbyattachingspecialcapabilitiestoparticularlands.

Iamdisposedtothinkthatthelattermode,towhichlittleattentionhasbeengivenbypoliticaleconomists,isreallythemoreimportant.Butthis,inourinquiry,isnotamatterofmoment.

[BacktoTableofContents]

ChapterIIITheEffectofImprovementsintheArtsupontheDistributionofWealth

Eliminatingimprovementsinthearts,wehaveseentheeffectsofincreaseofpopulationuponthedistributionofwealth.Eliminatingincreaseofpopulation,letusnowseewhateffectimprovementsintheartsofproductionhaveupondistribution.

Wehaveseenthatincreaseofpopulationincreasesrent,ratherbyincreasingtheproductivenessoflaborthanbydecreasingit.Ifitcannowbeshownthat,irrespectiveoftheincreaseofpopulation,theeffectofimprovementsinmethodsofproductionandexchangeistoincreaserent,thedisproofoftheMalthusiantheory—andofallthedoctrinesderivedfromorrelatedtoit—willbefinalandcomplete,forweshallhaveaccountedforthetendencyofmaterialprogresstolowerwagesanddepresstheconditionofthelowestclass,withoutrecoursetothetheoryofincreasingpressureagainstthemeansofsubsistence.

Thatthisisthecasewill,Ithink,appearontheslightestconsideration.

Theeffectofinventionsandimprovementsintheproductiveartsistosavelabor—thatis,toenablethesameresulttobesecuredwithlesslabor,oragreaterresultwiththesamelabor.

Now,inastateofsocietyinwhichtheexistingpoweroflaborservedtosatisfyallmaterialdesires,andtherewasnopossibilityofnewdesiresbeingcalledforthbytheopportunityofgratifyingthem,theeffectoflabor-savingimprovementswouldbesimplytoreducetheamountoflaborexpended.Butsuchastateofsociety,ifitcananywherebefound,whichIdonotbelieve,existsonlywherethehumanmostnearlyapproachestheanimal.Inthestateofsocietycalledcivilized,andwhichinthisinquiryweareconcernedwith,theveryreverseisthecase.Demandisnotafixedquantity,thatincreasesonlyaspopulation

increases.Ineachindividualitriseswithhispowerofgettingthethingsdemanded.Manisnotanox,who,whenhehaseatenhisfill,liesdowntochewthecud;heisthedaughterofthehorseleech,whoconstantlyasksformore.“WhenIgetsomemoney,”saidErasmus,“IwillbuymesomeGreekbooksandafterwardsomeclothes.”Theamountofwealthproducedisnowherecommensuratewiththedesireforwealth,anddesiremountswitheveryadditionalopportunityforgratification.

Thisbeingthecase,theeffectoflabor-savingimprovementswillbetoincreasetheproductionofwealth.Now,fortheproductionofwealth,twothingsarerequired—laborandland.Therefore,theeffectoflabor-savingimprovementswillbetoextendthedemandforland,andwhereverthelimitofthequalityoflandinuseisreached,tobringintocultivationlandsoflessnaturalproductiveness,ortoextendcultivationonthesamelandstoapointoflowernaturalproductiveness.Andthus,whiletheprimaryeffectoflabor-savingimprovementsistoincreasethepoweroflabor,thesecondaryeffectistoextendcultivation,and,wherethislowersthemarginofcultivation,toincreaserent.Thus,wherelandisentirelyappropriated,asinEngland,orwhereitiseitherappropriatedoriscapableofappropriationasrapidlyasitisneededforuse,asintheUnitedStates,theultimateeffectoflabor-savingmachineryorimprovementsistoincreaserentwithoutincreasingwagesorinterest.

Itisimportantthatthisbefullyunderstood,foritshowsthateffectsattributedbycurrenttheoriestoincreaseofpopulationarereallyduetotheprogressofinvention,andexplainstheotherwiseperplexingfactthatlabor-savingmachineryeverywherefallstobenefitlaborers.

Yet,fullytograspthistruth,itisnecessarytokeepinmindwhatIhavealreadymorethanonceadvertedto—theinterchangeabilityofwealth.Irefertothisagain,onlybecauseitissopersistentlyforgottenorignoredbywriterswhospeakofagriculturalproductionasthoughitweretobedistinguishedfromproductioningeneral,andoffoodorsubsistenceasthoughitwerenotincludedinthetermwealth.

Letmeaskthereadertobearinmind,whathasalreadybeensufficientlyillustrated,thatthepossessionorproductionofanyformofwealthisvirtuallythepossessionorproductionofanyotherformofwealthforwhichitwillexchange—inorderthathemayclearlyseethatitisnotmerelyimprovementswhicheffectasavinginlabordirectlyappliedtolandthattendtoincreaserent,butallimprovementsthatinanywaysavelabor.

Thatthelaborofanyindividualisappliedexclusivelytotheproductionofoneformofwealthissolelytheresultofthedivisionoflabor.Theobjectoflaboronthepartofanyindividualisnottheobtainmentofwealthinoneparticularform,buttheobtainmentofwealthinalltheformsthatconsortwithhisdesires.And,hence,animprovementwhicheffectsasavinginthelaborrequiredtoproduceoneofthethingsdesired,is,ineffect,anincreaseinthepowerofproducingalltheotherthings.Ifittakehalfaman’slabortokeephiminfood,andtheotherhalftoprovidehimclothingandshelter,animprovementwhichwouldincreasehispowerofproducingfoodwouldalsoincreasehispowerofprovidingclothingandshelter.Ifhisdesiresformoreorbetterfood,andformoreorbetterclothingandshelter,wereequal,animprovementinonedepartmentoflaborwouldbepreciselyequivalenttoalikeimprovementintheother.Iftheimprovementconsistedinadoublingofthepowerofhislaborinproducingfood,hewouldgiveone-thirdlesslabortotheproductionoffood,andone-thirdmoretotheprovidingofclothingandshelter.Iftheimprovementdoubledhispowertoprovideclothingandshelter,hewouldgiveone-thirdlesslabortotheproductionofthesethings,andone-thirdmoretotheproductionoffood.Ineithercase,theresultwouldbethesame—hewouldbeenabledwiththesamelabortogetone-thirdmoreinquantityorqualityofallthethingshedesired.

And,so,whereproductioniscarriedonbythedivisionoflaborbetweenindividuals,anincreaseinthepowerofproducingoneofthethingssoughtbyproductionintheaggregateaddstothepowerofobtainingothers,andwillincreasetheproductionoftheothers,toanextent

determinedbytheproportionwhichthesavingoflaborbearstothetotalamountoflaborexpended,andbytherelativestrengthofdesires.Iamunabletothinkofanyformofwealth,thedemandforwhichwouldnotbeincreasedbyasavinginthelaborrequiredtoproducetheothers.Hearsesandcoffinshavebeenselectedasexamplesofthingsforwhichthedemandislittlelikelytoincrease;butthisistrueonlyastoquantity.Thatincreasedpowerofsupplywouldleadtoademandformoreexpensivehearsesandcoffins,noonecandoubtwhohasnoticedhowstrongisthedesiretoshowregardforthedeadbycostlyfunerals.

Noristhedemandforfoodlimited,asineconomicreasoningisfrequently,buterroneously,assumed.Subsistenceisoftenspokenofasthoughitwereafixedquantity;butitisfixedonlyashavingadefiniteminimum.Lessthanacertainamountwillnotkeepahumanbeingalive,andlessthanasomewhatlargeramountwillnotkeepahumanbeingingoodhealth.But,abovethisminimum,thesubsistencewhichahumanbeingcanusemaybeincreasedalmostindefinitely.AdamSmithsays,andRicardoindorsesthestatement,thatthedesireforfoodislimitedineverymanbythenarrowcapacityofthehumanstomach;butthis,manifestly,istrueonlyinthesensethatwhenaman’sbellyisfilled,hungerissatisfied.Hisdemandsforfoodhavenosuchlimit.ThestomachofaLouisXIV,aLouisXV,oraLouisXVI,couldnotholdordigestmorethanthestomachofaFrenchpeasantofequalstature,yet,whileafewrodsofgroundwouldsupplytheblackbreadandherbswhichconstitutedthesubsistenceofthepeasant,ittookhundredsofthousandsofacrestosupplythedemandsoftheking,who,besideshisownwastefuluseofthefinestqualitiesoffood,requiredimmensesuppliesforhisservants,horsesanddogs.Andinthecommonfactsofdailylife,intheunsatisfied,thoughperhapslatent,desireswhicheachonehas,wemayseehoweveryincreaseinthepowerofproducinganyformofwealthmustresultinanincreaseddemandforlandandthedirectproductsofland.Themanwhonowusescoarsefood,andlivesinasmallhouse,will,asarule,ifhisincomebeincreased,usemorecostlyfood,andmovetoalargerhouse.Ifhegrowsricherandricherbewillprocurehorses,

servants,gardensandlawns,hisdemandfortheuseoflandconstantlyincreasingwithhiswealth.InthecitywhereIwrite,isaman—butthetypeofmeneverywheretobefound—whousedtoboilhisownbeansandfryhisownbacon,butwho,nowthathehasgotrich,maintainsatownhousethattakesupawholeblockandwouldanswerforafirst-classhotel,twoorthreecountryhouseswithextensivegrounds,alargestudofracers,abreedingfarm,privatetrack,etc.Itcertainlytakesatleastathousandtimes,itmaybeseveralthousandtimes,asmuchlandtosupplythedemandsofthismannowasitdidwhenhewaspoor.

And,so,everyimprovementorinvention,nomatterwhatitbe,whichgivestolaborthepowerofproducingmorewealth,causesanincreaseddemandforlandanditsdirectproducts,andthustendstoforcedownthemarginofcultivation,justaswouldthedemandcausedbyanincreasedpopulation.Thisbeingthecase,everylabor-savinginvention,whetheritbeasteamplow,atelegraph,animprovedprocessofsmeltingores,aperfectingprintingpress,orasewingmachine,hasatendencytoincreaserent.

Or,tostatethistruthconcisely:

Wealthinallitsformsbeingtheproductoflaborappliedtolandortheproductsofland,anyincreaseinthepoweroflabor,thedemandforwealthbeingunsatisfied,willbeutilizedinprocuringmorewealth,andthusincreasethedemandforland.

Toillustratethiseffectoflabor-savingmachineryandimprovements,letussupposeacountrywhere,asinallthecountriesofthecivilizedworld,thelandisinthepossessionofbutaportionofthepeople.Letussupposeapermanentbarrierfixedtofurtherincreaseofpopulation,eitherbytheenactmentandstrictenforcementofanHerodianlaw,orfromsuchachangeinmannersandmoralsasmightresultfromanextensivecirculationofAnnieBesant’spamphlets.Letthemarginofcultivation,orproduction,berepresentedby20.Thuslandorothernaturalopportunities

which,fromtheapplicationoflaborandcapital,willyieldareturnof20,willjustgivetheordinaryrateofwagesandinterest,withoutyieldinganyrent;whilealllandsyieldingtoequalapplicationsoflaborandcapitalmorethan20willyieldtheexcessasrent.Populationremainingfixed,lettherebemadeinventionsandimprovementswhichwillreducebyone-tenththeexpenditureoflaborandcapitalnecessarytoproducethesameamountofwealth.Now,eitherone-tenthofthelaborandcapitalmaybefreed,andproductionremainthesameasbefore;orthesameamountoflaborandcapitalmaybeemployed,andproductionbecorrespondinglyincreased.Buttheindustrialorganization,asinallcivilizedcountries,issuchthatlaborandcapital,andespeciallylabor,mustpressforemploymentonanyterms—theindustrialorganizationissuchthatmerelaborersarenotinapositiontodemandtheirfairshareinthenewadjustment,andthatanyreductionintheapplicationoflabortoproductionwill,atfirst,atleast,taketheform,notofgivingeachlaborerthesameamountofproduceforlesswork,butofthrowingsomeofthelaborersoutofworkandgivingthemnoneoftheproduce.Now,owingtotheincreasedefficiencyoflaborsecuredbythenewimprovements,asgreatareturncanbesecuredatthepointofnaturalproductivenessrepresentedby18,asbeforeat20.Thus,theunsatisfieddesireforwealth,thecompetitionoflaborandcapitalforemployment,wouldinsuretheextensionofthemarginofproduction,wewillsayto18,andthusrentwouldbeincreasedbythedifferencebetween18and20,whilewagesandinterest,inquantity,wouldbenomorethanbefore,and,inproportiontothewholeproduce,wouldbeless.Therewouldbeagreaterproductionofwealth,butlandownerswouldgetthewholebenefit,subjecttotemporarydeductions,whichwillbehereafterstated.

Ifinventionandimprovementstillgoon,theefficiencyoflaborwillbestillfurtherincreased,andtheamountoflaborandcapitalnecessarytoproduceagivenresultfurtherdiminished.Thesamecauseswillleadtotheutilizationofthisnewgaininproductivepowerfortheproductionofmorewealth;themarginofcultivationwillbeagainextended,andrentwillincrease,bothinproportionandamount,withoutanyincreasein

wagesandinterest.And,so,asinventionandimprovementgoon,constantlyaddingtotheefficiencyoflabor,themarginofproductionwillbepushedlowerandlower,andrentconstantlyincreased,thoughpopulationshouldremainstationary.

Idonotmeantosaythattheloweringofthemarginofproductionwouldalwaysexactlycorrespondwiththeincreaseinproductivepower,anymorethanImeantosaythattheprocesswouldbeoneofclearlydefinedsteps.Whether,inanyparticularcase,theloweringofthemarginofproductionlagsbehindorexceedstheincreaseinproductivepower,willdepend,Iconceive,uponwhatmaybecalledtheareaofproductivenessthatcanbeutilizedbeforecultivationisforcedtothenextlowestpoint.Forinstance,ifthemarginofcultivationbeat20,improvementswhichenablethesameproducetobeobtainedwithone-tenthlesscapitalandlaborwillnotcarrythemarginto18,iftheareahavingaproductivenessof19issufficienttoemployallthelaborandcapitaldisplacedfromthecultivationofthesuperiorlands.Inthiscase,themarginofcultivationwouldrestat19,andrentswouldbeincreasedbythedifferencebetween19and20,andwagesandinterestbythedifferencebetween18and19.Butif,withthesameincreaseinproductivepowertheareaofproductivenessbetween20and18shouldnotbesufficienttoemployallthedisplacedlaborandcapital,themarginofcultivationmust,ifthesameamountoflaborandcapitalpressforemployment,becarriedlowerthan18.Inthiscase,rentwouldgainmorethantheincreaseintheproduct,andwagesandinterestwouldbelessthanbeforetheimprovementswhichincreasedproductivepower.

Norisitpreciselytruethatthelaborsetfreebyeachimprovementwillallbedriventoseekemploymentintheproductionofmorewealth.Theincreasedpowerofsatisfaction,whicheachfreshimprovementgivestoacertainportionofthecommunity,willbeutilizedindemandingleisureorservices,aswellasindemandingwealth.Somelaborerswill,therefore,becomeidlersandsomewillpassfromtheranksofproductivetothoseofunproductivelaborers—theproportionofwhich,asobservationshows,

tendstoincreasewiththeprogressofsociety.

But,asIshallpresentlyrefertoacause,asyetunconsidered,whichconstantlytendstolowerthemarginofcultivation,tosteadytheadvanceofrent,andevencarryitbeyondtheproportionthatwouldbefixedbytheactualmarginofcultivation,itisnotworthwhiletotakeintoaccounttheseperturbationsinthedownwardmovementofthemarginofcultivationandtheupwardmovementofrent.AllIwishtomakeclearisthat,withoutanyincreaseinpopulation,theprogressofinventionconstantlytendstogivealargerproportionoftheproducetotheownersofland,andasmallerandsmallerproportiontolaborandcapital.

And,aswecanassignnolimitstotheprogressofinvention,neithercanweassignanylimitstotheincreaseofrent,shortofthewholeproduce.For,iflabor-savinginventionswentonuntilperfectionwasattained,andthenecessityoflaborintheproductionofwealthwasentirelydoneawaywith,theneverythingthattheearthcouldyieldcouldbeobtainedwithoutlabor,andthemarginofcultivationwouldbeextendedtozero.Wageswouldbenothing,andinterestwouldbenothing,whilerentwouldtakeeverything.Fortheownersoftheland,beingenabledwithoutlabortoobtainallthewealththatcouldbeprocuredfromnature,therewouldbenouseforeitherlabororcapital,andnopossiblewayinwhicheithercouldcompelanyshareofthewealthproduced.Andnomatterhowsmallpopulationmightbe,ifanybodybutthelandownerscontinuedtoexist,itwouldbeatthewhimorbythemercyofthelandowners—theywouldbemaintainedeitherfortheamusementofthelandowners,or,aspaupers,bytheirbounty.

Thispoint,oftheabsoluteperfectionoflabor-savinginventions,mayseemveryremote,ifnotimpossibleofattainment;butitisapointtowardwhichthemarchofinventioniseverydaymorestronglytending.AndinthethinningoutofpopulationintheagriculturaldistrictsofGreatBritain,wheresmallfarmsarebeingconvertedintolargerones,andinthegreatmachine-workedwheatfieldsofCaliforniaandDakota,where

onemayrideformilesandmilesthroughwavinggrainwithoutseeingahumanhabitation,therearealreadysuggestionsofthefinalgoaltowardwhichthewholecivilizedworldishastening.ThesteamplowandthereapingmachinearecreatinginthemodernworldlatifundiaofthesamekindthattheinfluxofslavesfromforeignwarscreatedinancientItaly.Andtomanyapoorfellowasheisshovedoutofhisaccustomedplaceandforcedtomoveon—astheRomanfarmerswereforcedtojointheproletariatofthegreatcity,orselltheirbloodforbreadintheranksofthelegions—itseemsasthoughtheselabor-savinginventionswereinthemselvesacurse,andwehearmentalkingofwork,asthoughthewearyingstrainofthemuscleswere,initself,athingtobedesired.

Inwhathaspreceded,Ihave,ofcourse,spokenofinventionsandimprovementswhengenerallydiffused.Itishardlynecessarytosaythataslongasaninventionoranimprovementisusedbysofewthattheyderiveaspecialadvantagefromit,itdoesnot,totheextentofthisspecialadvantage,affectthegeneraldistributionofwealth.So,inregardtothelimitedmonopoliescreatedbypatentlaws,orbythecauseswhichgivethesamecharactertorailroadandtelegraphlines,etc.Althoughgenerallymistakenforprofitsofcapital,thespecialprofitsthusarisingarereallythereturnsofmonopoly,ashasbeenexplainedinapreviouschapter,and,totheextentthattheysubtractfromthebenefitsofanimprovement,donotprimarilyaffectgeneraldistribution.Forinstance,thebenefitsofarailroadorsimilarimprovementincheapeningtransportationarediffusedormonopolized,asitschargesarereducedtoaratewhichwillyieldordinaryinterestonthecapitalinvested,orkeptuptoapointwhichwillyieldanextraordinaryreturn,orcoverthestealingoftheconstructorsordirectors.And,asiswellknown,theriseinrentorlandvaluescorrespondswiththereductioninthecharges.

Ashasbeforebeensaid,intheimprovementswhichadvancerentarenotonlytobeincludedtheimprovementswhichdirectlyincreaseproductivepower,butalsosuchimprovementsingovernment,manners,andmoralsasindirectlyincreaseit.Consideredasmaterialforces,theeffectofall

theseistoincreaseproductivepower,and,likeimprovementsintheproductivearts,theirbenefitisultimatelymonopolizedbythepossessorsoftheland.AnotableinstanceofthisistobefoundintheabolitionofprotectionbyEngland.FreetradehasenormouslyincreasedthewealthofGreatBritain,withoutlesseningpauperism.Ithassimplyincreasedrent.AndifthecorruptgovernmentsofourgreatAmericancitiesweretobemademodelsofpurityandeconomy,theeffectwouldsimplybetoincreasethevalueofland,nottoraiseeitherwagesorinterest.

[BacktoTableofContents]

ChapterIVEffectoftheExpectationRaisedbyMaterialProgress

Wehavenowseenthatwhileadvancingpopulationtendstoadvancerent,soallthecausesthatinaprogressivestateofsocietyoperatetoincreasetheproductivepoweroflabortend,also,toadvancerent,andnottoadvancewagesorinterest.Theincreasedproductionofwealthgoesultimatelytotheownersoflandinincreasedrent;and,although,asimprovementgoeson,advantagesmayaccruetoindividualsnotlandholders,whichconcentrateintheirhandsconsiderableportionsoftheincreasedproduce,yetthereisinallthisimprovementnothingwhichtendstoincreasethegeneralreturneithertolaborortocapital.

Butthereisacause,notyetadvertedto,whichmustbetakenintoconsiderationfullytoexplaintheinfluenceofmaterialprogressuponthedistributionofwealth.

Thatcauseistheconfidentexpectationofthefutureenhancementoflandvalues,whicharisesinallprogressivecountriesfromthesteadyincreaseofrent,andwhichleadstospeculation,ortheholdingoflandforahigherpricethanitwouldthenotherwisebring.

Wehavehithertoassumed,asisgenerallyassumedinelucidationsofthetheoryofrent,thattheactualmarginofcultivationalwayscoincideswithwhatmaybetermedthenecessarymarginofcultivation—thatistosay,wehaveassumedthatcultivationextendstolessproductivepointsonlyasitbecomesnecessaryfromthefactthatnaturalopportunitiesareatthemoreproductivepointsfullyutilized.

This,probably,isthecaseinstationaryorveryslowlyprogressingcommunities,butinrapidlyprogressingcommunities,wheretheswiftandsteadyincreaseofrentgivesconfidencetocalculationsoffurther

increase,itisnotthecase.Insuchcommunities,theconfidentexpectationofincreasedpricesproduces,toagreaterorlessextent,theeffectsofacombinationamonglandholders,andtendstothewithholdingoflandfromuse,inexpectationofhigherprices,thusforcingthemarginofcultivationfartherthanrequiredbythenecessitiesofproduction.

Thiscausemustoperatetosomeextentinallprogressivecommunities,thoughinsuchcountriesasEngland,wherethetenantsystemprevailsinagriculture,itmaybeshownmoreinthesellingpriceoflandthanintheagriculturalmarginofcultivation,oractualrent.ButincommunitiesliketheUnitedStates,wheretheuseroflandgenerallyprefers,ifhecan,toownit,andwherethereisagreatextentoflandtooverrun,itoperateswithenormouspower.

TheimmenseareaoverwhichthepopulationoftheUnitedStatesisscatteredshowsthis.ThemanwhosetsoutfromtheEasternseaboardinsearchofthemarginofcultivation,wherehemayobtainlandwithoutpayingrent,must,likethemanwhoswamtherivertogetadrink,passforlongdistancesthroughhalf-tilledfarms,andtraversevastareasofvirginsoil,beforehereachesthepointwherelandcanbehadfreeofrenti.e.,byhomesteadentryorpre-emption.He(and,withhim,themarginofcultivation)isforcedsomuchfartherthanheotherwiseneedhavegone,bythespeculationwhichisholdingtheseunusedlandsinexpectationofincreasedvalueinthefuture.Andwhenhesettles,hewill,inhisturn,takeup,ifhecan,morelandthanhecanuse,inthebeliefthatitwillsoonbecomevaluable;andsothosewhofollowhimareagainforcedfartheronthanthenecessitiesofproductionrequire,carryingthemarginofcultivationtostilllessproductive,becausestillmoreremotepoints.

Thesamethingmaybeseenineveryrapidlygrowingcity.Ifthelandofsuperiorqualityastolocationwerealwaysfullyusedbeforelandofinferiorqualitywereresortedto,novacantlotswouldbeleftasacityextended,norwouldwefindmiserableshantiesinthemidstofcostly

buildings.Theselots,someofthemextremelyvaluable,arewithheldfromuse,orfromthefullusetowhichtheymightbeput,becausetheirowners,notbeingableornotwishingtoimprovethem,prefer,inexpectationoftheadvanceoflandvalues,toholdthemforahigherratethancouldnowbeobtainedfromthosewillingtoimprovethem.And,inconsequenceofthislandbeingwithheldfromuse,orfromthefulluseofwhichitiscapable,themarginofthecityispushedawaysomuchfartherfromthecenter.

Butwhenwereachthelimitsofthegrowingcitytheactualmarginofbuilding,whichcorrespondstothemarginofcultivationinagriculture—weshallnotfindthelandpurchasableatitsvalueforagriculturalpurposes,asitwouldbewererentdeterminedsimplybypresentrequirements;butweshallfindthatforalongdistancebeyondthecity,landbearsaspeculativevalue,baseduponthebeliefthatitwillberequiredinthefutureforurbanpurposes,andthattoreachthepointatwhichlandcanbepurchasedatapricenotbaseduponurbanrent,wemustgoveryfarbeyondtheactualmarginofurbanuse.

Or,totakeanothercaseofadifferentkind,instancessimilartowhichmaydoubtlessbefoundineverylocality.ThereisinMarinCounty,withineasyaccessofSanFrancisco,afinebeltofredwoodtimber.Naturally,thiswouldbefirstused,beforeresortingforthesupplyoftheSanFranciscomarkettotimberlandsatamuchgreaterdistance.Butityetremainsuncut,andlumberprocuredmanymilesbeyondisdailyhauledpastitontherailroad,becauseitsownerpreferstoboldforthegreaterpriceitwillbringinthefuture.Thus,bythewithholdingfromuseofthisbodyoftimber,themarginofproductionofredwoodisforcedsomuchfartherupanddowntheCoastRange.Thatmineralland,whenreducedtoprivateownership,isfrequentlywithheldfromusewhilepoorerdepositsareworked,iswellknown,andinnewstatesitiscommontofindindividualswhoarecalled“landpoor”—thatis,whoremainpoor,sometimesalmosttodeprivation,becausetheyinsistonholdingland,whichtheythemselvescannotuse,atpricesatwhichnoone

elsecanprofitablyuseit.

Torecurnowtotheillustrationwemadeuseofintheprecedingchapter:Withthemarginofcultivationstandingat20,anincreaseinthepowerofproductiontakesplace,whichrendersthesameresultobtainablewithone-tenthlesslabor.Forreasonsbeforestated,themarginofproductionmustnowbeforceddown,andifitrestsat18,thereturntolaborandcapitalwillbethesameasbefore,whenthemarginstoodat20.Whetheritwillbeforcedto18orbeforcedlowerdependsuponwhatIhavecalledtheareaofproductivenesswhichintervenesbetween20and18.Butiftheconfidentexpectationofafurtherincreaseofrentsleadsthelandownerstodemand3rentfor20land,2for19,and1for18land,andtowithholdtheirlandfromuseuntilthesetermsarecompliedwith,theareaofproductivenessmaybesoreducedthatthemarginofcultivationmustfallto17orevenlower;andthus,astheresultoftheincreaseintheefficiencyoflabor,laborerswouldgetlessthanbefore,whileinterestwouldbeproportionatelyreduced,andrentwouldincreaseingreaterratiothantheincreaseinproductivepower.

Whetherweformulateitasanextensionofthemarginofproduction,orasacarryingoftherentlinebeyondthemarginofproduction,theinfluenceofspeculationinlandinincreasingrentisagreatfactwhichcannotbeignoredinanycompletetheoryofthedistributionofwealthinprogressivecountries.Itistheforce,evolvedbymaterialprogress,whichtendsconstantlytoincreaserentinagreaterratiothanprogressincreasesproduction,andthusconstantlytends,asmaterialprogressgoesonandproductivepowerincreases,toreducewages,notmerelyrelatively,butabsolutely.Itisthisexpansiveforcewhich,operatingwithgreatpowerinnewcountries,bringstothem,seeminglylongbeforetheirtime,thesocialdiseasesofoldercountries;produces“tramps”onvirginacres,andbreedspaupersonhalf-tilledsoil.

Inshort,thegeneralandsteadyadvanceinlandvaluesinaprogressivecommunitynecessarilyproducesthatadditionaltendencytoadvance

whichisseeninthecaseofcommoditieswhenanygeneralandcontinuouscauseoperatestoincreasetheirprice.As,duringtherapiddepreciationofcurrencywhichmarkedthelatterdaysoftheSouthernConfederacy,thefactthatwhateverwasboughtonedaycouldbesoldforahigherpricethenext,operatedtocarryupthepriceofcommoditiesevenfasterthanthedepreciationofthecurrency,sodoesthesteadyincreaseoflandvalues,whichmaterialprogressproduces,operatestillfurthertoacceleratetheincrease.Weseethissecondarycauseoperatinginfullforceinthosemaniasoflandspeculationwhichmarkthegrowthofnewcommunities;butthoughthesearetheabnormalandoccasionalmanifestations,itisundeniablethatthecausesteadilyoperates,withgreaterorlessintensity,inallprogressivesocieties.

Thecausewhichlimitsspeculationincommodities,thetendencyofincreasingpricetodrawforthadditionalsupplies,cannotlimitthespeculativeadvanceinlandvalues,aslandisafixedquantity,whichhumanagencycanneitherincreasenordiminish;butthereisneverthelessalimittothepriceofland,intheminimumrequiredbylaborandcapitalastheconditionofengaginginproduction.Ifitwerepossiblecontinuouslytoreducewagesuntilzerowerereached,itwouldbepossiblecontinuouslytoincreaserentuntilitswallowedupthewholeproduce.Butaswagescannotbepermanentlyreducedbelowthepointatwhichlaborerswillconsenttoworkandreproduce,norinterestbelowthepointatwhichcapitalwillbedevotedtoproduction,thereisalimitwhichrestrainsthespeculativeadvanceofrent.Hencespeculationcannothavethesamescopetoadvancerentincountrieswherewagesandinterestarealreadyneartheminimum,asincountrieswheretheyareconsiderablyaboveit.Yetthatthereisinallprogressivecountriesaconstanttendencyinthespeculativeadvanceofrenttooverpassthelimitwhereproductionwouldcease,is,Ithink,shownbyrecurringseasonsofindustrialparalysis—amatterwhichwillbemorefullyexaminedinthenextbook.

[BacktoTableofContents]

BookVTheProblemSolved

ChapterI.ThePrimaryCauseofRecurringParoxysmsofIndustrialDepressionChapterII.ThePersistenceofPovertyAmidAdvancingWealth

Towhomsoeverthesoilatanytimebelongs,tohimbelongthefruitsofit.Whiteparasols,andelephantsmadwithpridearetheflowersofagrantofland.

—SirWm.Jones’translationofanIndiangrantofland,foundatTanna.

Thewidowisgatheringnettlesforherchildren’sdinner;aperfumedseigneur,delicatelylounginginthe̸ildeB̹uf,bathanalchemywhereybyhewillextractfromherthethirdnettle,andcallitrent

—Carlyle.

[BacktoTableofContents]

ChapterIThePrimaryCauseofRecurringParoxysmsofIndustrialDepression

Ourlonginquiryisended.Wemaynowmarshaltheresults.

Tobeginwiththeindustrialdepressions,toaccountforwhichsomanycontradictoryandself-contradictorytheoriesarebroached.

Aconsiderationofthemannerinwhichthespeculativeadvanceinlandvaluescutsdowntheearningsoflaborandcapitalandchecksproductionleads,Ithink,irresistiblytotheconclusionthatthisisthemaincauseofthoseperiodicalindustrialdepressionstowhicheverycivilizedcountry,andallcivilizedcountriestogether,seemincreasinglyliable.

Idonotmeantosaythattherearenototherproximatecauses.Thegrowingcomplexityandinterdependenceofthemachineryofproduction,whichmakeseachshockorstoppagepropagateitselfthroughawideningcircle;theessentialdefectofcurrencieswhichcontractwhenmostneeded,andthetremendousalternationsinvolumethatoccurinthesimplerformsofcommercialcredit,which,toamuchgreaterextentthancurrencyinanyform,constitutethemediumorfluxofexchanges;theprotectivetariffswhichpresentartificialbarrierstotheinterplayofproductiveforces,andothersimilarcauses,undoubtedlybearimportantpartinproducingandcontinuingwhatarecalledhardtimes.But,bothfromtheconsiderationofprinciplesandtheobservationofphenomena,itisclearthatthegreatinitiatorycauseistobelookedforinthespeculativeadvanceoflandvalues.

IntheprecedingchapterIhaveshownthatthespeculativeadvanceinlandvaluestendstopressthemarginofcultivation,orproduction,beyonditsnormallimit,thuscompellinglaborandcapitaltoacceptofa

smallerreturn,or(andthisistheonlywaytheycanresistthetendency)toceaseproduction.Now,itisnotonlynaturalthatlaborandcapitalshouldresistthecrowdingdownofwagesandinterestbythespeculativeadvanceofrent,buttheyaredriventothisinself-defense,inasmuchasthereisaminimumofreturnbelowwhichlaborcannotexistnorcapitalbemaintained.Hence,fromthefactofspeculationinland,wemayinferallthephenomenawhichmarktheserecurringseasonsofindustrialdepression.

Givenaprogressivecommunity,inwhichpopulationisincreasingandoneimprovementsucceedsanother,andlandmustconstantlyincreaseinvalue.Thissteadyincreasenaturallyleadstospeculationinwhichfutureincreaseisanticipated,andlandvaluesarecarriedbeyondthepointatwhich,undertheexistingconditionsofproduction,theiraccustomedreturnswouldbelefttolaborandcapital.Production,therefore,beginstostop.Notthatthereisnecessarily,orevenprobably,anabsolutediminutioninproduction;butthatthereiswhatinaprogressivecommunitywouldbeequivalenttoanabsolutediminutionofproductioninastationarycommunity—afailureinproductiontoincreaseproportionately,owingtothefailureofnewincrementsoflaborandcapitaltofindemploymentattheaccustomedrates.

Thisstoppageofproductionatsomepointsmustnecessarilyshowitselfatotherpointsoftheindustrialnetwork,inacessationofdemand,whichwouldagaincheckproductionthere,andthustheparalysiswouldcommunicateitselfthroughalltheinterlacingsofindustryandcommerce,producingeverywhereapartialdisjointingofproductionandexchange,andresultinginthephenomenathatseemtoshowover-productionorover-consumption,accordingtothestandpointfromwhichtheyareviewed.

Theperiodofdepressionthusensuingwouldcontinueuntil(1)thespeculativeadvanceinrentshadbeenlost;or(2)theincreaseintheefficiencyoflabor,owingtothegrowthofpopulationandtheprogressof

improvement,hadenabledthenormalrentlinetoovertakethespeculativerentline;or(3)laborandcapitalhadbecomereconciledtoengaginginproductionforsmallerreturns.Or,mostprobably,allthreeofthesecauseswouldco-operatetoproduceanewequilibrium,atwhichalltheforcesofproductionwouldagainengage,andaseasonofactivityensue;whereuponrentwouldbegintoadvanceagain,aspeculativeadvanceagaintakeplace,productionagainbechecked,andthesameroundbegoneover.

Intheelaborateandcomplicatedsystemofproductionwhichischaracteristicofmoderncivilization,where,moreover,thereisnosuchthingasadistinctandindependentindustrialcommunity,butgeographicallyorpoliticallyseparatedcommunitiesblendandinterlacetheirindustrialorganizationsindifferentmodesandvaryingmeasures,itisnottobeexpectedthateffectshouldbeseentofollowcauseasclearlyanddefinitelyaswouldbethecaseinasimplerdevelopmentofindustry,andinacommunityformingacompleteanddistinctindustrialwhole;but,nevertheless,thephenomenaactuallypresentedbythesealternateseasonsofactivityanddepressionclearlycorrespondwiththosewehaveinferredfromthespeculativeadvanceofrent.

Deductionthusshowstheactualphenomenaasresultingfromtheprinciple.Ifwereversetheprocess,itisaseasybyinductiontoreachtheprinciplebytracingupthephenomena.

Theseseasonsofdepressionarealwaysprecededbyseasonsofactivityandspeculation,andonallhandstheconnectionbetweenthetwoisadmitted—thedepressionbeinglookeduponasthereactionfromthespeculation,astheheadacheofthemorningisthereactionfromthedebauchofthenight.Butastothemannerinwhichthedepressionresultsfromthespeculation,therearetwoclassesorschoolsofopinion,astheattemptsmadeonbothsidesoftheAtlantictoaccountforthepresentindustrialdepressionwillshow.

Oneschoolsaysthatthespeculationproducedthedepressionbycausingover-production,andpointstothewarehousesfilledwithgoodsthatcannotbesoldatremunerativeprices,tomillsclosedorworkingonhalftime,tominesshutdownandsteamerslaidup,tomoneylyingidlyinbankvaults,andworkmencompelledtoidlenessandprivation.Theypointtothesefactsasshowingthattheproductionhasexceededthedemandforconsumption,andtheypoint,moreover,tothefactthatwhengovernmentduringwarentersthefieldasanenormousconsumer,brisktimesprevail,asintheUnitedStatesduringthecivilwarandinEnglandduringtheNapoleonicstruggle.

Theotherschoolsaysthatthespeculationhasproducedthedepressionbyleadingtoover-consumption,andpointstofullwarehouses,rustingsteamers,closedmills,andidleworkmenasevidencesofacessationofeffectivedemand,which,theysay,evidentlyresultsfromthefactthatpeople,madeextravagantbyafictitiousprosperity,havelivedbeyondtheirmeans,andarenowobligedtoretrench—thatis,toconsumelesswealth.Theypoint,moreover,totheenormousconsumptionofwealthbywars,bythebuildingofunremunerativerailroads,byloanstobankruptgovernments,etc.,asextravaganceswhich,thoughnotfeltatthetime,justasthespendthriftdoesnotatthemomentfeeltheimpairmentofhisfortune,mustnowbemadeupbyaseasonofreducedconsumption.

Now,eachofthesetheoriesevidentlyexpressesonesideorphaseofageneraltruth,buteachofthemevidentlyfailstocomprehendthefulltruth.Asanexplanationofthephenomena,eachisequallyandutterlypreposterous.

Forwhilethegreatmassesofmenwantmorewealththantheycanget,andwhiletheyarewillingtogiveforitthatwhichisthebasisandrawmaterialofwealth—theirlabor—howcantherebeover-production?Andwhilethemachineryofproductionwastesandproducersarecondemnedtounwillingidleness,howcantherebeover-consumption?

When,withthedesiretoconsumemore,therecoexisttheabilityandwillingnesstoproducemore,industrialandcommercialparalysiscannotbechargedeithertoover-productionortoover-consumption.Manifestly,thetroubleisthatproductionandconsumptioncannotmeetandsatisfyeachother.

Howdoesthisinabilityarise?Itisevidentlyandbycommonconsenttheresultofspeculation.Butofspeculationinwhat?

Certainlynotofspeculationinthingswhicharetheproductsoflabor—inagriculturalormineralproductions,ormanufacturedgoods,fortheeffectofspeculationinsuchthings,asiswellshownincurrenttreatisesthatsparemethenecessityofillustration,issimplytoequalizesupplyanddemand,andtosteadytheinterplayofproductionandconsumptionbyanactionanalogoustothatofafly-wheelinamachine.

Therefore,ifspeculationbethecauseoftheseindustrialdepressions,itmustbespeculationinthingsnottheproductionoflabor,butyetnecessarytotheexertionoflaborintheproductionofwealth—ofthingsoffixedquantity;thatistosay,itmustbespeculationinland.

Thatlandspeculationisthetruecauseofindustrialdepressionis,intheUnitedStates,clearlyevident.Ineachperiodofindustrialactivitylandvalueshavesteadilyrisen,culminatinginspeculationwhichcarriedthemupingreatjumps.Thishasbeeninvariablyfollowedbyapartialcessationofproduction,anditscorrelative,acessationofeffectivedemand(dulltrade),generallyaccompaniedbyacommercialcrash;andthenhassucceededaperiodofcomparativestagnation,duringwhichtheequilibriumhasbeenagainslowlyestablished,andthesameroundbeenrunagain.Thisrelationisobservablethroughoutthecivilizedworld.Periodsofindustrialactivityalwaysculminateinaspeculativeadvanceoflandvalues,followedbysymptomsofcheckedproduction,generallyshownatfirstbycessationofdemandfromthenewercountries,wheretheadvanceinlandvalueshasbeengreatest.

Thatthismustbethemainexplanationoftheseperiodsofdepression,willbeseenbyananalysisofthefacts.

Alltrade,letitberemembered,istheexchangeofcommoditiesforcommodities,andhencethecessationofdemandforsomecommodities,whichmarksthedepressionoftrade,isreallyacessationinthesupplyofothercommodities.Thatdealersfindtheirsalesdecliningandmanufacturersfindordersfallingoff,whilethethingswhichtheyhavetosell,orstandreadytomake,arethingsforwhichthereisyetawidespreaddesire,simplyshowsthatthesupplyofotherthings,whichinthecourseoftradewouldbegivenforthem,hasdeclined.Incommonparlancewesaythat“buyershavenomoney,”orthat“moneyisbecomingscarce,”butintalkinginthiswayweignorethefactthatmoneyisbutthemediumofexchange.Whatthewould-bebuyersreallylackisnotmoney,butcommoditieswhichtheycanturnintomoney—whatisreallybecomingscarcerisproduceofsomesort.Thediminutionoftheeffectivedemandofconsumersisthereforebutaresultofthediminutionofproduction.

Thisisseenveryclearlybystorekeepersinamanufacturingtownwhenthemillsareshutdownandoperativesthrownoutofwork.Itisthecessationofproductionwhichdeprivestheoperativesofmeanstomakethepurchasestheydesire,andthusleavesthestorekeeperwithwhat,inviewofthelesseneddemand,isasuperabundantstock,andforceshimtodischargesomeofhisclerksandotherwisereducehisdemands.Andthecessationofdemand(Iamspeaking,ofcourse,ofgeneralcasesandnotofanyalterationinrelativedemandfromsuchcausesaschangeoffashion),whichhasleftthemanufacturerwithsuperabundantstockandcompelledhimtodischargehishands,mustariseinthesameway.Somewhere,itmaybeattheotherendoftheworld,acheckinproductionhasproducedacheckinthedemandforconsumption.Thatdemandislessenedwithoutwantbeingsatisfied,showsthatproductionissomewherechecked.

Peoplewantthethingsthemanufacturermakesasmuchasever,justastheoperativeswantthethingsthestorekeeperhastosell.Buttheydonothaveasmuchtogiveforthem.Productionhassomewherebeenchecked,andthisreductioninthesupplyofsomethingshasshownitselfincessationofdemandforothers,thecheckpropagatingitselfthroughthewholeframeworkofindustryandexchange.Now,theindustrialpyramidmanifestlyrestsontheland.Theprimaryandfundamentaloccupations,whichcreateademandforallothers,areevidentlythosewhichextractwealthfromnature,and,hence,ifwetracefromoneexchangepointtoanother,andfromoneoccupationtoanother,thischecktoproduction,whichshowsitselfindecreasedpurchasingpower,wemustultimatelyfinditinsomeobstaclewhichcheckslaborinexpendingitselfonland.Andthatobstacle,itisclear,isthespeculativeadvanceinrent,orthevalueofland,whichproducesthesameeffectsas(infact,itis)alock-outoflaborandcapitalbylandowners.Thischecktoproduction,beginningatthebasisofinterlacedindustry,propagatesitselffromexchangepointtoexchangepoint,cessationofsupplybecomingfailureofdemand,until,sotospeak,thewholemachineisthrownoutofgear,andthespectacleiseverywherepresentedoflaborgoingtowastewhilelaborerssufferfromwant.

Thisstrangeandunnaturalspectacleoflargenumbersofwillingmenwhocannotfindemploymentisenoughtosuggestthetruecausetowhosoevercanthinkconsecutively.For,thoughcustomhasdulledustoit,itisastrangeandunnaturalthingthatmenwhowishtolabor,inordertosatisfytheirwants,cannotfindtheopportunity—as,sincelaboristhatwhichproduceswealth,themanwhoseekstoexchangelaborforfood,clothing,oranyotherformofwealth,islikeonewhoproposestogivebullionforcoin,orwheatforflour.Wetalkaboutthesupplyoflaborandthedemandforlabor,but,evidently,theseareonlyrelativeterms.Thesupplyoflaboriseverywherethesame—twohandsalwayscomeintotheworldwithonemouth,twenty-oneboystoeverytwentygirls;andthedemandforlabormustalwaysexistaslongasmenwantthingswhichlaboralonecanprocure.Wetalkaboutthe“wantofwork,”but,evidently,

itisnotworkthatisshortwhilewantcontinues;evidently,thesupplyoflaborcannotbetoogreat,northedemandforlabortoosmall,whenpeoplesufferforthelackofthingsthatlaborproduces.Therealtroublemustbethatsupplyissomehowpreventedfromsatisfyingdemand,thatsomewherethereisanobstaclewhichpreventslaborfromproducingthethingsthatlaborerswant.

Takethecaseofanyoneofthesevastmassesofunemployedmen,towhom,thoughheneverheardofMalthus,itto-dayseemsthattherearetoomanypeopleintheworld.Inhisownwants,intheneedsofhisanxiouswife,inthedemandsofhishalf-cared-for,perhapsevenhungryandshiveringchildren,thereisdemandenoughforlabor,Heavenknows!Inhisownwillingbandsisthesupply.Puthimonasolitaryisland,andthoughcutofffromalltheenormousadvantageswhichtheco-operation,combination,andmachineryofacivilizedcommunitygivetotheproductivepowersofmanyethistwohandscanfillthemouthsandkeepwarmthebacksthatdependuponthem.Yetwhereproductivepowerisatitshighestdevelopmenttheycannot.Why?Isitnotbecauseintheonecasehehasaccesstothematerialandforcesofnature,andintheotherthisaccessisdenied?

Isitnotthefactthatlaboristhusshutofffromnaturewhichcanaloneexplainthestateofthingsthatcompelsmentostandidlewhowouldwillinglysupplytheirwantsbytheirlabor?Theproximatecauseofenforcedidlenesswithonesetofmenmaybethecessationofdemandonthepartofothermenfortheparticularthingstheyproduce,buttracethiscausefrompointtopoint,fromoccupationtooccupation,andyouwillfindthatenforcedidlenessinonetradeiscausedbyenforcedidlenessinanother,andthattheparalysiswhichproducesdullnessinalltradescannotbesaidtospringfromtoogreatasupplyoflaborortoosmallademandforlabor,butmustproceedfromthefactthatsupplycannotmeetdemandbyproducingthethingswhichsatisfywantandaretheobjectoflabor.

Now,whatisnecessarytoenablelabortoproducethesethings,island.Whenwespeakoflaborcreatingwealth,wespeakmetaphorically.Mancreatesnothing.Thewholehumanrace,weretheytolaborforever,couldnotcreatethetiniestmotethatfloatsinasunbeamcouldnotmakethisrollingsphereoneatomheavieroroneatomlighter.Inproducingwealth,labor,withtheaidofnaturalforces,butworksup,intotheformsdesired,pre-existingmatter,and,toproducewealth,must,therefore,haveaccesstothismatterandtotheseforces—thatistosay,toland.Thelandisthesourceofallwealth.Itistheminefromwhichmustbedrawntheorethatlaborfashions.Itisthesubstancetowhichlaborgivestheform.And,hence,whenlaborcannotsatisfyitswants,maywenotwithcertaintyinferthatitcanbefromnoothercausethanthatlaborisdeniedaccesstoland?

Wheninalltradesthereiswhatwecallscarcityofemployment;when,everywhere,laborwastes,whiledesireisunsatisfied,mustnottheobstaclewhichpreventslaborfromproducingthewealthitneeds,lieatthefoundationoftheindustrialstructure?Thatfoundationisland.Milliners,opticalinstrumentmakers,gilders,andpolishers,arenotthepioneersofnewsettlements.MinersdidnotgotoCaliforniaorAustraliabecauseshoemakers,tailors,machinists,andprinterswerethere.Butthosetradesfollowedtheminers,justastheyarenowfollowingthegolddiggersintotheBlackHillsandthediamonddiggersintoSouthAfrica.Itisnotthestorekeeperwhoisthecauseofthefarmer,butthefarmerwhobringsthestorekeeper.Itisnotthegrowthofthecitythatdevelopsthecountry,butthedevelopmentofthecountrythatmakesthecitygrow.And,hence,when,throughalltrades,menwillingtoworkcannotfindopportunitytodoso,thedifficultymustariseintheemploymentthatcreatesademandforallotheremployments—itmustbebecauselaborisshutoutfromland.

InLeedsorLowell,inPhiladelphiaorManchester,inLondonorNewYork,itmayrequireagraspoffirstprinciplestoseethis;butwhereindustrialdevelopmenthasnotbecomesoelaborate,northeextreme

linksofthechainsowidelyseparated,onehasbuttolookatobviousfacts.Althoughnotyetthirtyyearsold,thecityofSanFrancisco,bothinpopulationandincommercialimportance,ranksamongthegreatcitiesoftheworld,and,nexttoNewYork,isthemostmetropolitanofAmericancities.Thoughnotyetthirtyyearsold,shehashadforsomeyearsanincreasingnumberofunemployedmen.Clearly,here,itisbecausemencannotfindemploymentinthecountrythattherearesomanyunemployedinthecity;forwhentheharvestopenstheygotroopingout,andwhenitisovertheycometroopingbacktothecityagain.Ifthesenowunemployedmenwereproducingwealthfromtheland,theywouldnotonlybeemployingthemselves,butwouldbeemployingallthemechanicsofthecity,givingcustomtothestorekeepers,tradetothemerchants,audiencestothetheaters,andsubscribersandadvertisementstothenewspapers—creatingeffectivedemandthatwouldbefeltinNewEnglandandOldEngland,andwhereverthroughouttheworldcomethearticlesthat,whentheyhavethemeanstopayforthem,suchapopulationconsumes.

Now,whyisitthatthisunemployedlaborcannotemployitselfupontheland?Notthatthelandisallinuse.ThoughallthesymptomsthatinoldercountriesaretakenasshowingaredundancyofpopulationarebeginningtomanifestthemselvesinSanFrancisco,itisidletotalkofredundancyofpopulationinaStatethatwithgreaternaturalresourcesthanFrancehasnotyetamillionofpeople.WithinafewmilesofSanFranciscoisunusedlandenoughtogiveemploymenttoeverymanwhowantsit.Idonotmeantosaythateveryunemployedmancouldturnfarmerorbuildhimselfahouse,ifhehadtheland;butthatenoughcouldandwoulddosotogiveemploymenttotherest.Whatisit,then,thatpreventslaborfromemployingitselfonthisland?Simply,thatithasbeenmonopolizedandisheldatspeculativeprices,basednotuponpresentvalue,butupontheaddedvaluethatwillcomewiththefuturegrowthofpopulation.

WhatmaythusbeseeninSanFranciscobywhoeveriswillingtosee,

may,Idoubtnot,beseenasclearlyinotherplaces.

Thepresentcommercialandindustrialdepression,whichfirstclearlymanifesteditselfintheUnitedStatesin1872,andhasspreadwithgreaterorlessintensityoverthecivilizedworld,islargelyattributedtotheundueextensionoftherailroadsystem,withwhichtherearemanythingsthatseemtoshowitsrelation.Iamfullyconsciousthattheconstructionofrailroadsbeforetheyareactuallyneededmaydivertcapitalandlaborfrommoretolessproductiveemployments,andmakeacommunitypoorerinsteadofricher;andwhentherailroadmaniawasatitshighest,IpointedthisoutinapoliticaltractaddressedtothepeopleofCalifornia;buttoassigntothiswastingofcapitalsuchawidespreadindustrialdeadlockseemstomelikeattributinganunusuallylowtidetothedrawingofafewextrabucketfulsofwater.Thewasteofcapitalandlaborduringthecivilwarwasenormouslygreaterthanitcouldpossiblybebytheconstructionofunnecessaryrailroads,butwithoutproducinganysuchresult.And,certainly,thereseemstobelittlesenseintalkingofthewasteofcapitalandlaborinrailroadsascausingthisdepression,whentheprominentfeatureofthedepressionhasbeenthesuperabundanceofcapitalandlaborseekingemployment.

Yet,thatthereisaconnectionbetweentherapidconstructionofrailroadsandindustrialdepression,anyonewhounderstandswhatincreasedlandvaluesmean,andwhohasnoticedtheeffectwhichtheconstructionofrailroadshasuponlandspeculation,caneasilysee.Whereverarailroadwasbuiltorprojected,landssprangupinvalueundertheinfluenceofspeculation,andthousandsofmillionsofdollarswereaddedtothenominalvalueswhichcapitalandlaborwereaskedtopayoutright,ortopayininstallments,asthepriceofbeingallowedtogotoworkandproducewealth.Theinevitableresultwastocheckproduction,andthischecktoproductionpropagateditselfinacessationofdemand,whichcheckedproductiontothefurthestvergeofthewidecircleofexchanges,operatingwithaccumulatedforceinthecentersofthegreatindustrialcommonwealthintowhichcommercelinksthecivilizedworld.

Theprimaryoperationsofthiscausecan,perhaps,benowheremoreclearlytracedthaninCalifornia,which,fromitscomparativeisolation,hasconstitutedapeculiarlywell-definedcommunity.

Untilalmostitsclose,thelastdecadewasmarkedinCaliforniabythesameindustrialactivitywhichwasshownintheNorthernStates,and,infact,throughoutthecivilizedworld,whentheinterruptionofexchangesandthedisarrangementofindustrycausedbythewarandtheblockadeofsouthernportsisconsidered.ThisactivitycouldnotbeattributedtoinflationofthecurrencyortolavishexpendituresoftheGeneralGovernment,towhichintheEasternStatesthecomparativeactivityofthesameperiodhassincebeenattributed;for,inspiteoflegaltenderlaws,thePacificCoastadheredtoacoincurrency,andthetaxationoftheFederalGovernmenttookawayverymuchmorethanwasreturnedinFederalexpenditures.Itwasattributablesolelytonormalcauses,for,thoughplacerminingwasdeclining,theNevadasilvermineswerebeingopened,wheatandwoolwerebeginningtotaketheplaceofgoldinthetableofexports,andanincreasingpopulationandtheimprovementinthemethodsofproductionandexchangeweresteadilyaddingtotheefficiencyoflabor.

Withthismaterialprogresswentonasteadyenhancementinlandvalues—itsconsequence.Thissteadyadvanceengenderedaspeculativeadvance,which,withtherailroadera,ranuplandvaluesineverydirection.IfthepopulationofCaliforniahadsteadilygrownwhenthelong,costly,fever-hauntedIsthmusroutewastheprincipalmodeofcommunicationwiththeAtlanticStates,itmust,itwasthought,increaseenormouslywiththeopeningofaroadwhichwouldbringNewYorkHarborandSanFranciscoBaywithinsevendays’easytravel,andwheninthestateitselfthelocomotivetooktheplaceofstagecoachandfreightwagon.Theexpectedincreaseoflandvalueswhichwouldthusaccruewasdiscountedinadvance.LotsontheoutskirtsofSanFranciscorosehundredsandthousandspercent.,andfarminglandwastakenupandheldforhighprices,inwhicheverdirectionanimmigrantwaslikelytogo.

Buttheanticipatedrushofimmigrantsdidnottakeplace.Laborandcapitalcouldnotpaysomuchforlandandmakefairreturns.Productionwaschecked,ifnotabsolutely,atleastrelatively.Asthetranscontinentalrailroadapproachedcompletion,insteadofincreasedactivity,symptomsofdepressionbegantomanifestthemselves;and,whenitwascompleted,totheseasonofactivityhadsucceededaperiodofdepressionwhichhasnotsincebeenfullyrecoveredfrom,duringwhichwagesandinteresthavesteadilyfallen.WhatIhavecalledtheactualrentline,ormarginofcultivation,isthus(aswellasbythesteadymarchofimprovementandincreaseofpopulation,which,thoughslowerthanitotherwisewouldhavebeen,stillgoeson)approachingthespeculativerentline,butthetenacitywithwhichaspeculativeadvanceinthepriceoflandismaintainedinadevelopingcommunityiswellknown.

Now,whatthuswentoninCaliforniawentonineveryprogressivesectionoftheUnion.Everywherethatarailroadwasbuiltorprojected,landwasmonopolizedinanticipation,andthebenefitoftheimprovementwasdiscountedinincreasedlandvalues.Thespeculativeadvanceinrentthusoutrunningthenormaladvance,productionwaschecked,demandwasdecreased,andlaborandcapitalwereturnedbackfromoccupationsmoredirectlyconcernedwithland,toglutthoseinwhichthevalueoflandisalessperceptibleelement.Itisthusthattherapidextensionofrailroadsisrelatedtothesucceedingdepression.

AndwhatwentonintheUnitedStateswentoninagreaterorlessobviousdegreeallovertheprogressiveworld.Everywherelandvalueshavebeensteadilyincreasingwithmaterialprogress,andeverywherethisincreasebegotaspeculativeadvance.TheimpulseoftheprimarycausenotonlyradiatedfromthenewersectionsoftheUniontotheoldersections,andfromtheUnitedStatestoEurope,buteverywheretheprimarycausewasacting.And,hence,aworld-widedepressionofindustryandcommerce,begottenofaworld-widematerialprogress.

Thereisonethingwhich,itmayseem,Ihaveoverlooked,inattributing

theseindustrialdepressionstothespeculativeadvanceofrentorlandvaluesasamainandprimarycause.Theoperationofsuchacause,thoughitmayberapid,mustbeprogressive—resemblingapressure,notablow.Buttheseindustrialdepressionsseemtocomesuddenly—theyhave,attheirbeginning,thecharacterofaparoxysm,followedbyacomparativelethargy,asifofexhaustion.Everythingseemstobegoingonasusual,commerceandindustryvigorousandexpanding,whensuddenlytherecomesashock,asofathunderboltoutofaclearsky—abankbreaks,agreatmanufacturerormerchantfalls,and,asifablowhadthrilledthroughtheentireindustrialorganization,failuresucceedsfailure,andoneverysideworkmenaredischargedfromemployment,andcapitalshrinksintoprofitlesssecurity.

LetmeexplainwhatIthinktobethereasonofthis:Todoso,wemusttakeintoaccountthemannerinwhichexchangesaremade,foritisbyexchangesthatallthevariedformsofindustryarelinkedtogetherintoonemutuallyrelatedandinterdependentorganization.Toenableexchangestobemadebetweenproducersfarremovedbyspaceandtime,largestocksmustbekeptinstoreandintransit,andthis,asIhavealreadyexplained,Itaketobethegreatfunctionofcapital,inadditiontothatofsupplyingtoolsandseed.Theseexchangesare,perhapsnecessarily,largelymadeuponcredit—thatistosay,theadvanceupononesideismadebeforethereturnisreceivedontheother.

Now,withoutstoppingtoinquireastothecauses,itismanifestthattheseadvancesare,asarule,fromthemorehighlyorganizedandlaterdevelopedindustriestothemorefundamental.TheWestCoastAfrican,forinstance,whoexchangespalmoilandcocoanutsforgaudycalicoandBirminghamidols,getshisreturnimmediately;theEnglishmerchant,onthecontrary,hastolayoutofhisgoodsalongwhilebeforehegetshisreturns.Thefarmercansellhiscropassoonasitisharvested,andforcash;thegreatmanufacturermustkeepalargestock,sendhisgoodslongdistancestoagents,and,generally,sellontime.Thus,asadvancesandcreditsaregenerallyfromwhatwemaycallthesecondary,towhatwe

maycalltheprimaryindustries,itfollowsthatanychecktoproductionwhichproceedsfromthelatterwillnotimmediatelymanifestitselfintheformer.Thesystemofadvancesandcreditsconstitutes,asitwere,anelasticconnection,whichwillgiveconsiderablybeforebreaking,butwhich,whenitbreaks,willbreakwithasnap.

Or,toillustrateinanotherwaywhatImean:ThegreatpyramidofGizehiscomposedoflayersofmasonry,thebottomlayer,ofcourse,supportingalltherest.Couldwebysomemeansgraduallycontractthisbottomlayer,theupperpartofthepyramidwouldforsometimeretainitsform,andthen,whengravitationatlengthovercametheadhesivenessofthematerial,wouldnotdiminishgraduallyandregularly,butwouldbreakoffsuddenly,inlargepieces.Now,theindustrialorganizationmaybelikenedtosuchapyramid.Whatistheproportionwhichinagivenstageofsocialdevelopmentthevariousindustriesbeartoeachother,itisdifficult,andperhapsimpossible,tosay;butitisobviousthatthereissuchaproportion,justasinaprinter’sfontoftypethereisacertainproportionbetweenthevariousletters.Eachformofindustry,asitisdevelopedbydivisionoflabor,springsfromandrisesoutoftheothers,andallrestultimatelyuponland;for,withoutland,laborisasimpotentaswouldbeamaninvoidspace.Tomaketheillustrationclosertotheconditionofaprogressivecountry,imagineapyramidcomposedofsuperimposedlayers—thewholeconstantlygrowingandexpanding.Imaginethegrowthofthelayernearestthegroundtobechecked.Theotherswillforatimekeeponexpanding—infact,forthemoment,thetendencywillbetoquickerexpansion,forthevitalforcewhichisrefusedscopeonthegroundlayerwillstrivetofindventinthoseabove—until,atlength,thereisadecidedoverbalanceandasuddencrumblingalongallthefacesofthepyramid.

Thatthemaincauseandgeneralcourseoftherecurringparoxysmsofindustrialdepression,whicharebecomingsomarkedafeatureofmodernsociallife,arethusexplained,is,Ithink,clear.Andletthereaderrememberthatitisonlythemaincausesandgeneralcoursesofsuch

phenomenathatweareseekingtotraceorthat,infact,itispossibletotracewithanyexactness.Politicaleconomycandeal,andhasneedtodeal,onlywithgeneraltendencies.Thederivativeforcesaresomultiform,theactionsandreactionsaresovarious,thattheexactcharacterofthephenomenacannotbepredicted.Weknowthatifatreeiscutthroughitwillfall,butpreciselyinwhatdirectionwillbedeterminedbytheinclinationofthetrunk,thespreadofthebranches,theimpactoftheblows,thequarterandforceofthewind;andevenabirdlightingonatwig,orafrightenedsquirrelleapingfromboughtobough,willnotbewithoutitsinfluence.Weknowthataninsultwillarouseafeelingofresentmentinthehumanbreast,buttosayhowfarandinwhatwayitwillmanifestitself,wouldrequireasynthesiswhichwouldbuilduptheentiremanandallhissurroundings,pastandpresent.

ThemannerinwhichthesufficientcausetowhichIhavetracedthemexplainsthemainfeaturesoftheseindustrialdepressionsisinstrikingcontrastwiththecontradictoryandself-contradictoryattemptswhichhavebeenmadetoexplainthemonthecurrenttheoriesofthedistributionofwealth.Thataspeculativeadvanceinrentorlandvaluesinvariablyprecedeseachoftheseseasonsofindustrialdepressioniseverywhereclear.Thattheybeartoeachothertherelationsofcauseandeffect,isobvioustowhosoeverconsidersthenecessaryrelationsbetweenlandandlabor.

Andthatthepresentdepressionisrunningitscourse,andthat,inthemannerpreviouslyindicated,anewequilibriumisbeingestablished,whichwillresultinanotherseasonofcomparativeactivity,mayalreadybeseenintheUnitedStates.Thenormalrentlineandthespeculativerentlinearebeingbroughttogether:(1)Bythefallinspeculativelandvalues,whichisveryevidentinthereductionofrentsandshrinkageofrealestatevaluesintheprincipalcities.(2)Bytheincreasedefficiencyoflabor,arisingfromthegrowthofpopulationandtheutilizationofnewinventionsanddiscoveries,someofwhichalmostasimportantasthatoftheuseofsteamweseemtobeonthevergeofgrasping.(3)Bythe

loweringofthehabitualstandardofinterestandwages,which,astointerest,isshownbythenegotiationofagovernmentloanatfourpercent.,andastowagesistoogenerallyevidentforanyspecialcitation.Whentheequilibriumisthusre-established,aseasonofrenewedactivity,culminatinginaspeculativeadvanceoflandvalues,willsetin.Butwagesandinterestwillnotrecovertheirlostground.Thenetresultofalltheseperturbationsorwave-likemovementsisthegradualforcingofwagesandinteresttowardtheirminimum.Thesetemporaryandrecurringdepressionsexhibit,infact,aswasnoticedintheopeningchapter,butintensificationsofthegeneralmovementwhichaccompaniesmaterialprogress.

TheSubsidyQuestionandtheDemocraticParty,“1871.

Itisastonishinghowinanewcountryofgreatexpectationsspeculativepricesoflandwillbekeptup.Itiscommontoheartheexpression,”Thereisnomarketforrealestate;youcannotsellitatanyprice,“andyet,atthesametime,ifyougotobuyit,unlessyoufindsomebodywhoisabsolutelycompelledtosell,youmustpaythepricesthatprevailedwhenspeculationranhigh.Forowners,believingthatlandvaluesmustultimatelyadvance,holdonaslongastheycan.

Thiswaswrittenayearago.Itisnow(July,1879)evidentthatanewperiodofactivityhascommenced,asabovepredicted,andinNewYorkandChicagorealestatepriceshavealreadybeguntorecover.

[BacktoTableofContents]

ChapterIIThePersistenceofPovertyAmidAdvancingWealth

Thegreatproblem,ofwhichtheserecurringseasonsofindustrialdepressionarebutpeculiarmanifestations,isnow,Ithink,fullysolved,andthesocialphenomenawhichalloverthecivilizedworldappallthephilanthropistandperplexthestatesman,whichhangwithcloudsthefutureofthemostadvancedraces,andsuggestdoubtsoftherealityandultimategoalofwhatwehavefondlycalledprogress,arenowexplained.

Thereasonwhy,inspiteoftheincreaseofproductivepower,wagesconstantlytendtoaminimumwhichwillgivebutabareliving,isthat,withincreaseinproductivepower,renttendstoevengreaterincrease,thusproducingaconstanttendencytotheforcingdownofwages.

Ineverydirection,thedirecttendencyofadvancingcivilizationistoincreasethepowerofhumanlabortosatisfyhumandesires—toextirpatepoverty,andtobanishwantandthefearofwant.Allthethingsinwhichprogressconsists,alltheconditionswhichprogressivecommunitiesarestrivingfor,havefortheirdirectandnaturalresulttheimprovementofthematerial(andconsequentlytheintellectualandmoral)conditionofallwithintheirinfluence.Thegrowthofpopulation,theincreaseandextensionofexchanges,thediscoveriesofscience,themarchofinvention,thespreadofeducation,theimprovementofgovernment,andtheameliorationofmanners,consideredasmaterialforces,havealladirecttendencytoincreasetheproductivepoweroflabor—notofsomelabor,butofalllabor;notinsomedepartmentsofindustry,butinalldepartmentsofindustry;forthelawoftheproductionofwealthinsocietyisthelawof”eachforall,andallforeach.“

Butlaborcannotreapthebenefitswhichadvancingcivilizationthusbrings,becausetheyareintercepted.Landbeingnecessarytolabor,and

beingreducedtoprivateownership,everyincreaseintheproductivepoweroflaborbutincreasesrent—thepricethatlabormustpayfortheopportunitytoutilizeitspowers;andthusalltheadvantagesgainedbythemarchofprogressgototheownersofland,andwagesdonotincrease.Wagescannotincrease;forthegreatertheearningsoflaborthegreaterthepricethatlabormustpayoutofitsearningsfortheopportunitytomakeanyearningsatall.ThemerelaborerhasthusnomoreinterestinthegeneraladvanceofproductivepowerthantheCubanslavehasinadvanceinthepriceofsugar.Andjustasanadvanceinthepriceofsugarmaymaketheconditionoftheslaveworse,byinducingthemastertodrivehimharder,somaytheconditionofthefreelaborerbepositively,aswellasrelatively,changedfortheworsebytheincreaseintheproductivepowerofhislabor.For,begottenofthecontinuousadvanceofrents,arisesaspeculativetendencywhichdiscountstheeffectoffutureimprovementsbyastillfurtheradvanceofrent,andthustends,wherethishasnotoccurredfromthenormaladvanceofrent,todrivewagesdowntotheslavepoint—thepointatwhichthelaborercanjustlive.

Andthusrobbedofallthebenefitsoftheincreaseinproductivepower,laborisexposedtocertaineffectsofadvancingcivilizationwhich,withouttheadvantagesthatnaturallyaccompanythem,arepositiveevils,andofthemselvestendtoreducethefreelaborertothehelplessanddegradedconditionoftheslave.

Forallimprovementswhichaddtoproductivepowerascivilizationadvancesconsistin,ornecessitate,astillfurthersubdivisionoflabor,andtheefficiencyofthewholebodyoflaborersisincreasedattheexpenseoftheindependenceoftheconstituents.Theindividuallaboreracquiresknowledgeofandskillinbutaninfinitesimalpartofthevariedprocesseswhicharerequiredtosupplyeventhecommonestwants.Theaggregateproduceofthelaborofasavagetribeissmall,buteachmemberiscapableofanindependentlife.Hecanbuildhisownhabitation,hewoutorstitchtogetherhisowncanoe,makehisownclothing,manufacturehis

ownweapons,snares,toolsandornaments.Hehasalltheknowledgeofnaturepossessedbyhistribe—knowswhatvegetableproductionsarefitforfood,andwheretheymaybefound;knowsthehabitsandresortsofbeasts,birds,fishes,andinsects;canpilothimselfbythesunorthestars,bytheturningofblossomsorthemossesonthetrees;is,inshort,capableofsupplyingallhiswants.Hemaybecutofffromhisfellowsandstilllive;andthuspossessesanindependentpowerwhichmakeshimafreecontractingpartyinhisrelationstothecommunityofwhichheisamember.

Comparewiththissavagethelaborerinthelowestranksofcivilizedsociety,whoselifeisspentinproducingbutonething,oroftenerbuttheinfinitesimalpartofonething,outofthemultiplicityofthingsthatconstitutethewealthofsocietyandgotosupplyeventhemostprimitivewants;whonotonlycannotmakeeventhetoolsrequiredforhiswork,butoftenworkswithtoolsthathedoesnotown,andcanneverhopetoown.Compelledtoevencloserandmorecontinuouslaborthanthesavage,andgainingbyitnomorethanthesavagegets—themerenecessariesoflife—helosestheindependenceofthesavage.Heisnotonlyunabletoapplyhisownpowerstothedirectsatisfactionofhisownwants,but,withouttheconcurrenceofmanyothers,heisunabletoapplythemindirectlytothesatisfactionofhiswants.Heisamerelinkinanenormouschainofproducersandconsumers,helplesstoseparatehimself,andhelplesstomove,exceptastheymove.Theworsehispositioninsociety,themoredependentisheonsociety;themoreutterlyunabledoeshebecometodoanythingforhimself.Theverypowerofexertinghislaborforthesatisfactionofhiswantspassesfromhisowncontrol,andmaybetakenawayorrestoredbytheactionsofothers,orbygeneralcausesoverwhichhehasnomoreinfluencethanhehasoverthemotionsofthesolarsystem.Theprimevalcursecomestobelookeduponasaboon,andmenthink,andtalk,andclamor,andlegislateasthoughmonotonousmanuallaborinitselfwereagoodandnotanevil,anendandnotameans.Undersuchcircumstances,themanlosestheessentialqualityofmanhood—thegodlikepowerofmodifyingandcontrolling

conditions.Hebecomesaslave,amachine,acommodity—athing,insomerespects,lowerthantheanimal.

Iamnosentimentaladmirerofthesavagestate.IdonotgetmyideasoftheuntutoredchildrenofnaturefromRousseau,orChateaubriand,orCooper.Iamconsciousofitsmaterialandmentalpoverty,anditslowandnarrowrange.Ibelievethatcivilizationisnotonlythenaturaldestinyofman,buttheenfranchisement,elevation,andrefinementofallhispowers,andthinkthatitisonlyinsuchmoodsasmayleadhimtoenvythecud-chewingcattle,thatamanwhoisfreetotheadvantagesofcivilizationcouldlookwithregretuponthesavagestate.But,nevertheless,Ithinknoonewhowillopenhiseyestothefactscanresisttheconclusionthatthereareintheheartofourcivilizationlargeclasseswithwhomtheveriestsavagecouldnotaffordtoexchange.Itismydeliberateopinionthatif,standingonthethresholdofbeing,oneweregiventhechoiceofenteringlifeasaTierradelFuegan,ablackfellowofAustralia,anEsquimauxintheArcticCircle,oramongthelowestclassesinsuchahighlycivilizedcountryasGreatBritain,hewouldmakeinfinitelythebetterchoiceinselectingthelotofthesavage.Forthoseclasseswhointhemidstofwealtharecondemnedtowant,sufferalltheprivationsofthesavage,withouthissenseofpersonalfreedom;theyarecondemnedtomorethanhisnarrownessandlittleness,withoutopportunityforthegrowthofhisrudevirtues;iftheirhorizoniswider,itisbuttorevealblessingsthattheycannotenjoy.

Therearesometowhomthismayseemlikeexaggeration,butitisonlybecausetheyhaveneversufferedthemselvestorealizethetrueconditionofthoseclassesuponwhomtheironheelofmoderncivilizationpresseswithfullforce.AsDeTocquevilleobserves,inoneofhisletterstoMme.Swetchine,”wesosoonbecomeusedtothethoughtofwantthatwedonotfeelthatanevilwhichgrowsgreatertothesuffererthelongeritlastsbecomeslesstotheobserverbytheveryfactofitsduration“;andperhapsthebestproofofthejusticeofthisobservationisthatincitieswherethereexistsapauperclassandacriminalclass,whereyounggirlsshiver

astheysewforbread,andtatteredandbarefootedchildrenmakeahomeinthestreets,moneyisregularlyraisedtosendmissionariestotheheathen!Sendmissionariestotheheathen!Itwouldbelaughableifitwerenotsosad.Baalnolongerstretchesforthhishideous,slopingarms;butinChristianlandsmothersslaytheirinfantsforaburialfee!AndIchallengetheproductionfromanyauthenticaccountsofsavagelifeofsuchdescriptionsofdegradationasaretobefoundinofficialdocumentsofhighlycivilizedcountries—inreportsofsanitarycommissionersandofinquiriesintotheconditionofthelaboringpoor.

ThesimpletheorywhichIhaveoutlined(ifindeeditcanbecalledatheorywhichisbuttherecognitionofthemostobviousrelations)explainsthisconjunctionofpovertywithwealth,oflowwageswithhighproductivepower,ofdegradationamidenlightenment,ofvirtualslaveryInpoliticalliberty.Itharmonizes,asresultsflowingfromageneralandinexorablelaw,factsotherwisemostperplexing,andexhibitsthesequenceandrelationbetweenphenomenathatwithoutreferencetoitarediverseandcontradictory.Itexplainswhyinterestandwagesarehigherinnewthaninoldercommunities,thoughtheaverage,aswellastheaggregate,productionofwealthisless.Itexplainswhyimprovementswhichincreasetheproductivepoweroflaborandcapitalincreasetherewardofneither.Itexplainswhatiscommonlycalledtheconflictbetweenlaborandcapital,whileprovingtherealharmonyofinterestbetweenthem.Itcutsthelastinchofgroundfromunderthefallaciesofprotection,whileshowingwhyfreetradefailstobenefitpermanentlytheworkingclasses.Itexplainswhywantincreaseswithabundance,andwealthtendstogreaterandgreateraggregations.Itexplainstheperiodicallyrecurringdepressionsofindustrywithoutrecourseeithertotheabsurdityof”over-production“ortheabsurdityof”over-consumption.“Itexplainstheenforcedidlenessoflargenumbersofwould-beproducers,whichwastestheproductiveforceofadvancedcommunities,withouttheabsurdassumptionthatthereistoolittleworktodoorthattherearetoomanytodoit.Itexplainstheilleffectsuponthelaboringclasseswhichoftenfollowtheintroductionofmachinery,

withoutdenyingthenaturaladvantageswhichtheuseofmachinerygives.Itexplainstheviceandmiserywhichshowthemselvesamiddensepopulation,withoutattributingtothelawsoftheAll-WiseandAll-Beneficentdefectswhichbelongonlytotheshortsightedandselfishenactmentsofmen.

Thisexplanationisinaccordancewithallthefacts.

Lookovertheworldto-day.Incountriesthemostwidelydiffering—underconditionsthemostdiverseastogovernment,astoindustries,astotariffs,astocurrency—youwillfinddistressamongtheworkingclasses;buteverywherethatyouthusfinddistressanddestitutioninthemidstofwealthyouwillfindthatthelandismonopolized;thatinsteadofbeingtreatedasthecommonpropertyofthewholepeople,itistreatedastheprivatepropertyofindividuals;that,foritsusebylabor,largerevenuesareextortedfromtheearningsoflabor.Lookovertheworldto-day,comparingdifferentcountrieswitheachother,andyouwillseethatitisnottheabundanceofcapitalortheproductivenessoflaborthatmakeswageshighorlow;buttheextenttowhichthemonopolizersoflandcan,inrent,levytributeupontheearningsoflabor.Isitnotanotoriousfact,knowntothemostignorant,thatnewcountries,wheretheaggregatewealthissmall,butwherelandischeap,arealwaysbettercountriesforthelaboringclassesthantherichcountries,wherelandisdear?Whereveryoufindlandrelativelylow,willyounotfindwagesrelativelyhigh?Andwhereverlandishigh,willyounotfindwageslow?Aslandincreasesinvalue,povertydeepensandpauperismappears.Inthenewsettlements,wherelandischeap,youwillfindnobeggars,andtheinequalitiesinconditionareveryslight.Inthegreatcities,wherelandissovaluablethatitismeasuredbythefoot,youwillfindtheextremesofpovertyandofluxury.Andthisdisparityinconditionbetweenthetwoextremesofthesocialscalemayalwaysbemeasuredbythepriceofland.LandinNewYorkismorevaluablethanSanFrancisco;andinNewYork,theSanFranciscanmayseesqualorandmiserythatwillmakehimstandaghast.LandismorevaluableinLondonthaninNewYork;andinLondon,there

issqualoranddestitutionworsethanthatofNewYork.

Comparethesamecountryindifferenttimes,andthesamerelationisobvious.Astheresultofmuchinvestigation,HallamsaysheisconvincedthatthewagesofmanuallaborweregreaterinamountinEnglandduringtheMiddleAgesthantheyarenow.Whetherthisissoornot,itisevidentthattheycouldnothavebeenmuch,ifany,less.Theenormousincreaseintheefficiencyoflabor,whicheveninagricultureisestimatedatsevenoreighthundredpercent.,andinmanybranchesofindustryisalmostincalculable,hasonlyaddedtorent.TherentofagriculturallandinEnglandisnow,accordingtoProfessorRogers,120timesasgreat,measuredinmoney,asitwas500yearsago,and14timesasgreat,measuredinwheat;whileintherentofbuildingland,andmineralland,theadvancehasbeenenormouslygreater.AccordingtotheestimateofProfessorFawcett,thecapitalizedrentalvalueofthelandofEnglandnowamounts£4,500,000,000,or621,870,000,000—thatistosay,afewthousandofthepeopleofEnglandholdalienuponthelaboroftherest,thecapitalizedvalueofwhichismorethantwiceasgreatas,attheaveragepriceofSouthernnegroesin1860,wouldbethevalueofherwholepopulationweretheyslaves.

InBelgiumandFlanders,inFranceandGermany,therentandsellingpriceofagriculturallandhavedoubledwithinthelastthirtyyears.Inshort,increasedpowerofproductionhaseverywhereaddedtothevalueofland;nowherehasitaddedtothevalueoflabor;forthoughactualwagesmayinsomeplaceshavesomewhatrisen,theriseisclearlyattributabletoothercauses.Inmoreplacestheyhavefallen—thatis,whereithasbeenpossibleforthemtofall—forthereisaminimumbelowwhichlaborerscannotkeepuptheirnumbers.And,everywhere,wages,asaproportionoftheproduce,havedecreased.

HowtheBlackDeathbroughtaboutthegreatriseofwagesinEnglandinthefourteenthcenturyisclearlydiscernible,intheeffortsofthelandholderstoregulatewagesbystatute.Thatthatawfulreductionin

population,insteadofincreasing,reallyreducedtheeffectivepoweroflabor,therecanbenodoubt;butthelesseningofcompetitionforlandstillmoregreatlyreducedrent,andwagesadvancedsolargelythatforceandpenallawswerecalledintokeepthemdown.ThereverseeffectfollowedthemonopolizationoflandthatwentoninEnglandduringthereignofHenryVIII,intheinclosureofcommonsandthedivisionofthechurchlandsbetweenthepandersandparasiteswhowerethusenabledtofoundnoblefamilies.Theresultwasthesameasthattowhichaspeculativeincreaseinlandvaluestends.AccordingtoMalthus(who,inhisPrinciplesofPoliticalEconomy,mentionsthefactwithoutconnectingitwithlandtenures),inthereignofHenryVII,halfabushelofwheatwouldpurchasebutlittlemorethanaday’scommonlabor,butinthelatterpartofthereignofElizabeth,halfabushelofwheatwouldpurchasethreedays’commonlabor.Icanhardlybelievethatthereductioninwagescouldhavebeensogreatasthiscomparisonwouldindicate;butthattherewasareductionincommonwages,andgreatdistressamongthelaboringclasses,isevidentfromthecomplaintsof“sturdyvagrants”andthestatutesmadetosuppressthem.Therapidmonopolizationoftheland,thecarryingofthespeculativerentlinebeyondthenormalrentline,producedtrampsandpaupers,justaslikeeffectsfromlikecauseshavelatelybeenevidentintheUnitedStates.

“Landwhichwentheretoforefortwentyorfortypoundsayear,”saidHughLatimer,“nowisletforfiftyorahundred.Myfatherwasayeoman,andhadnolandsofhisown;onlyhehadafarmatarentofthreeorfourpoundsbytheyearattheuttermost,andthereuponhetilledsomuchaskepthalfadozenmen.Hehadwalkforahundredsheep,andmymothermilkedthirtykine;hewasableanddidfindtheKingaharnesswithhimselfandhishorsewhenhecametotheplacethatheshouldreceivetheKing’swages.IcanrememberthatIbuckledhisharnesswhenhewenttoBlackheathField.Hekeptmetoschool;hemarriedmysisterswithfivepoundsapiece,sothathebroughtthemupingodlinessandfearofGod.Hekepthospitalityforhisneighborsandsomealmshegavetothepoor.Andallthishedidofthesamefarm,wherehethatnowhathit

payethsixteenpoundsrentormorebyyear,andisnotabletodoanythingforhisPrince,forhimself,norhischildren,nortogiveacupofdrinktothepoor.”

“Inthisway,”saidSirThomasMore,referringtotheejectmentofsmallfarmerswhichcharacterizedthisadvanceofrent,“itcomestopassthatthesepoorwretches,men,women,husbands,orphans,widows,parentswithlittlechildren,householdersgreaterinnumberthaninwealth,alloftheseemigratefromtheirnativefields,withoutknowingwheretogo.”

AndsofromthestuffoftheLatimersandMores—fromthesturdyspiritthatamidtheflamesoftheOxfordstakecried,“Playtheman,MasterRidley!”andthemingledstrengthandsweetnessthatneitherprosperitycouldtaintnortheaxoftheexecutionerabash—wereevolvedthievesandvagrants,themassofcriminalityandpauperismthatstillblightstheinnermostpetalsandpreysagnawingwormattherootofEngland’srose.

Butitwereaswelltocitehistoricalillustrationsoftheattractionofgravitation.Theprincipleisasuniversalandasobvious.Thatrentmustreducewages,isasclearasthatthegreaterthesubtractorthelesstheremainder.Thatrentdoesreducewages,anyone,whereversituated,canseebymerelylookingaroundhim.

ThereisnomysteryastothecausewhichsosuddenlyandsolargelyraisedwagesinCaliforniain1849,andinAustraliain1852.ItwasthediscoveryoftheplacerminesinunappropriatedlandtowhichlaborwasfreethatraisedthewagesofcooksinSanFranciscorestaurantsto6500amonth,andleftshipstorotintheharborwithoutofficersorcrewuntiltheirownerswouldconsenttopayratesthatinanyotherpartoftheglobeseemedfabulous.Hadtheseminesbeenonappropriatedland,orhadtheybeenimmediatelymonopolizedsothatrentcouldhavearisen,itwouldhavebeenlandvaluesthatwouldhaveleapedupward,notwages.TheComstocklodehasbeenricherthantheplacers,buttheComstocklodewasreadilymonopolized,anditisonlybyvirtueofthestrong

organizationoftheMiners’Associationandthefearsofthedamagewhichitmightdo,thatenablesmentogetfourdollarsadayforparboilingthemselvestwothousandfeetunderground,wheretheairthattheybreathemustbepumpeddowntothem.ThewealthoftheComstocklodehasaddedtorent.Thesellingpriceoftheseminesrunsupintohundredsofmillions,andithasproducedindividualfortuneswhosemonthlyreturnscanbeestimatedonlyinhundredsofthousands,ifnotinmillions.NoristhereanymysteryaboutthecausewhichhasoperatedtoreducewagesinCaliforniafromthemaximumoftheearlydaystoverynearlyalevelwithwagesintheEasternStates,andthatisstilloperatingtoreducethem.Theproductivenessoflaborhasnotdecreased,onthecontraryithasincreased,asIhavebeforeshown;but,outofwhatitproduceslaborhasnowtopayrent.Astheplacerdepositswereexhausted,laborhadtoresorttothedeeperminesandtoagriculturalland,butmonopolizationofthesebeingpermitted,mennowwalkthestreetsofSanFranciscoreadytogotoworkforalmostanything—fornaturalopportunitiesarenownolongerfreetolabor.

Thetruthisself-evident.Puttoanyonecapableofconsecutivethoughtthisquestion:

“SupposethereshouldarisefromtheEnglishChannelortheGermanOceanaNo-man’slandonwhichcommonlabortoanunlimitedamountshouldbeabletomaketenshillingsadayandwhichshouldremainunappropriatedandoffreeaccess,likethecommonswhichoncecomprisedsolargeapartofEnglishsoil.WhatwouldbetheeffectuponwagesinEngland?”

HewouldatoncetellyouthatcommonwagesthroughoutEnglandmustsoonincreasetotenshillingsaday.

Andinresponsetoanotherquestion,“Whatwouldbetheeffectonrents?”hewouldatamoment’sreflectionsaythatrentsmustnecessarilyfall;andifhethoughtoutthenextstephewouldtellyouthatallthis

wouldhappenwithoutanyverylargepartofEnglishlaborbeingdivertedtothenewnaturalopportunities,ortheformsanddirectionofindustrybeingmuchchanged;onlythatkindofproductionbeingabandonedwhichnowyieldstolaborandtolandlordtogetherlessthanlaborcouldsecureonthenewopportunities.Thegreatriseinwageswouldbeattheexpenseofrent.

Takenowthesamemanoranother—somehard-headedbusinessman,whohasnotheories,butknowshowtomakemoney.Saytohim:“Hereisalittlevillage;intenyearsitwillbeagreatcity—intenyearstherailroadwillhavetakentheplaceofthestagecoach,theelectriclightofthecandle;itwillaboundwithallthemachineryandimprovementsthatsoenormouslymultiplytheeffectivepoweroflabor.Will,intenyears,interestbeanyhigher?”

Hewilltellyou,“No!”

“Willthewagesofcommonlaborbeanyhigher;willitbeeasierforamanwhohasnothingbuthislabortomakeanindependentliving?”

Hewilltellyou,“No;thewagesofcommonlaborwillnotbeanyhigher;onthecontrary,allthechancesarethattheywillbelower;itwillnotbeeasierforthemerelaborertomakeanindependentliving;thechancesarethatitwillbeharder.”

“What,then,willbehigher?”

“Rent;thevalueofland.Go,getyourselfapieceofground,andholdpossession.”

Andif,undersuchcircumstances,youtakehisadvice,youneeddonothingmore.Youmaysitdownandsmokeyourpipe;youmayliearoundlikethelazzaroniofNaplesortheleperosofMexico;youmaygoupinaballoon,ordownaboleintheground;andwithoutdoingone

strokeofwork,withoutaddingoneiotatothewealthofthecommunity,intenyearsyouwillberich!Inthenewcityyoumayhavealuxuriousmansion;butamongitspublicbuildingswillbeanalmshouse.

Inallourlonginvestigationwehavebeenadvancingtothissimpletruth:Thataslandisnecessarytotheexertionoflaborintheproductionofwealth,tocommandthelandwhichisnecessarytolabor,istocommandallthefruitsoflaborsaveenoughtoenablelabortoexist.Wehavebeenadvancingasthroughanenemy’scountry,inwhicheverystepmustbesecured,everypositionfortified,andeveryby-pathexplored;forthissimpletruth,initsapplicationtosocialandpoliticalproblems,ishidfromthegreatmassesofmenpartlybyitsverysimplicity,andingreaterpartbywidespreadfallaciesanderroneoushabitsofthoughtwhichleadthemtolookineverydirectionbuttherightoneforanexplanationoftheevilswhichoppressandthreatenthecivilizedworld.Andbackoftheseelaboratefallaciesandmisleadingtheoriesisanactive,energeticpower,apowerthatineverycountry,beitspoliticalformswhattheymay,writeslawsandmoldsthought—thepowerofavastanddominantpecuniaryinterest.

Butsosimpleandsoclearisthistruth,thattoseeitfullyonceisalwaystorecognizeIt.Therearepictureswhich,thoughlookedatagainandagain,presentonlyaconfusedlabyrinthoflinesorscrollwork—alandscape,trees,orsomethingofthekind—untiloncetheattentioniscalledtothefactthatthesethingsmakeupafaceorafigure.Thisrelationoncerecognized,isalwaysafterwardclear.Itissointhiscase.Inthelightofthistruthallsocialfactsgroupthemselvesinanorderlyrelation,andthemostdiversephenomenaareseentospringfromonegreatprinciple.Itisnotintherelationsofcapitalandlabor;itisnotinthepressureofpopulationagainstsubsistence,thatanexplanationoftheunequaldevelopmentofourcivilizationistobefound.Thegreatcauseofinequalityinthedistributionofwealthisinequalityintheownershipofland.Theownershipoflandisthegreatfundamentalfactwhichultimatelydeterminesthesocial,thepolitical,andconsequentlythe

intellectualandmoralconditionofapeople.Anditmustbeso.Forlandisthehabitationofman,thestorehouseuponwhichhemustdrawforallhisneeds,thematerialtowhichhislabormustbeappliedforthesupplyofallhisdesires;foreventheproductsoftheseacannotbetaken,thelightofthesunenjoyed,oranyoftheforcesofnatureutilized,withouttheuseoflandoritsproducts.Onthelandweareborn,fromitwelive,toitwereturnagain—childrenofthesoilastrulyasisthebladeofgrassortheflowerofthefield.Takeawayfrommanallthatbelongstoland,andheisbutadisembodiedspirit.Materialprogresscannotridusofourdependenceuponland;itcanbutaddtothepowerofproducingwealthfromland;andhence,whenlandismonopolized,itmightgoontoinfinitywithoutincreasingwagesorimprovingtheconditionofthosewhohavebuttheirlabor.Itcanbutaddtothevalueoflandandthepowerwhichitspossessiongives.Everywhere,inalltimes,amongallpeoples,thepossessionoflandisthebaseofaristocracy,thefoundationofgreatfortunes,thesourceofpower.AssaidtheBrahmins,agesago—

“Towhomsoeverthesoilatanytimebelongs,tohimbelongthefruitsofit.Whiteparasolsandelephantsmadwithpridearetheflowersofagrantofland.”

SystemsofLandTenure,”publishedbytheCobdenClub.

[BacktoTableofContents]

BookVITheRemedy

ChapterI.InsufficiencyofRemediesCurrentlyAdvocatedChapterII.TheTrueRemedy

Anewandfairdivisionofthegoodsandrightsofthisworldshouldbethemainobjectofthosewhoconducthumanaffairs.

—DeTocqueville.

Whentheobjectistoraisethepermanentconditionofapeople,smallmeansdonotmerelyproducesmalleffects;theyproducenoeffectatall.

—JohnStuartMill.

[BacktoTableofContents]

ChapterIInsufficiencyofRemediesCurrentlyAdvocated

Intracingtoitssourcethecauseofincreasingpovertyamidadvancingwealth,wehavediscoveredtheremedy;butbeforepassingtothatbranchofoursubjectitwillbewelltoreviewthetendenciesorremedieswhicharecurrentlyreliedonoradvocated.Theremedytowhichourconclusionspointisatonceradicalandsimple—soradicalthat,ontheoneside,itwillnotbefairlyconsideredsolongasanyfaithremainsintheefficacyoflesscausticmeasures;sosimplethat,ontheotherside,itsrealefficacyandcomprehensivenessarelikelytobeoverlooked,untiltheeffectofmoreelaboratemeasuresisestimated.

Thetendenciesandmeasureswhichcurrentliteratureanddiscussionsshowtobemoreorlessreliedonoradvocatedascalculatedtorelievepovertyanddistressamongthemasses,maybedividedintosixclasses.Idonotmeanthattherearesomanydistinctpartiesorschoolsofthought,butmerelythat,forthepurposeofourinquiry,prevailingopinionsandproposedmeasuresmaybesogroupedforreview.Remedieswhichforthesakeofgreaterconvenienceandclearnessweshallconsiderseparatelyareoftencombinedinthought.

Therearemanypersonswhostillretainacomfortablebeliefthatmaterialprogresswillultimatelyextirpatepoverty,andtherearemanywholooktoprudentialrestraintupontheincreaseofpopulationasthemostefficaciousmeans,butthefallacyoftheseviewshasalreadybeensufficientlyshown.Letusnowconsiderwhatmaybehopedfor:

I.Fromgreatereconomyingovernment.II.Fromthebettereducationoftheworkingclassesandimprovedhabitsofindustryandthrift.III.Fromcombinationsofworkmenfortheadvanceofwages.

IV.Fromtheco-operationoflaborandcapital.V.Fromgovernmentaldirectionandinterference.VI.Fromamoregeneraldistributionofland.

UnderthesesixheadsIthinkwemayinessentialformreviewallhopesandpropositionsforthereliefofsocialdistressshortofthesimplebutfar-reachingmeasurewhichIshallpropose.

I.

FromGreaterEconomyinGovernment

UntilaveryfewyearsagoitwasanarticleoffaithwithAmericans—abeliefsharedbyEuropeanliberalsthatthepovertyofthedowntroddenmassesoftheOldWorldwasduetoaristocraticandmonarchicalinstitutions.ThisbeliefhasrapidlypassedawaywiththeappearanceintheUnitedStates,underrepublicaninstitutions,ofsocialdistressofthesamekind,ifnotofthesameintensity,asthatprevailinginEurope.Butsocialdistressisstilllargelyattributedtotheimmenseburdenswhichexistinggovernmentsimpose—thegreatdebts,themilitaryandnavalestablishments,theextravagancewhichischaracteristicaswellofrepublicanasofmonarchicalrulers,andespeciallycharacteristicoftheadministrationofgreatcities.Tothesemustbeadded,intheUnitedStates,therobberyinvolvedintheprotectivetariff,whichforeverytwenty-fivecentsitputsinthetreasurytakesadollaranditmaybefourorfiveoutofthepocketoftheconsumer.Now,thereseemstobeanevidentconnectionbetweentheimmensesumsthustakenfromthepeopleandtheprivationsofthelowerclasses,anditisuponasuperficialviewnaturaltosupposethatareductionintheenormousburdensthususelesslyimposedwouldmakeiteasierforthepooresttogetaliving.Butaconsiderationofthematterinthelightoftheeconomicprinciplesheretoforetracedoutwillshowthatthiswouldnotbetheeffect.Areductionintheamounttakenfromtheaggregateproduceofa

communitybytaxationwouldbesimplyequivalenttoanincreaseinthepowerofnetproduction.Itwouldineffectaddtotheproductivepoweroflaborjustasdotheincreasingdensityofpopulationandimprovementinthearts.Andastheadvantageintheonecasegoes,andmustgo,totheownersofland,inincreasedrent,sowouldtheadvantageintheother.

FromtheproduceofthelaborandcapitalofEnglandarenowsupportedtheburdenofanimmensedebt,anEstablishedChurch,anexpensiveroyalfamily,alargenumberofsinecurists,agreatarmyandgreatnavy.Supposethedebtrepudiated,theChurchdisestablished,theroyalfamilysetadrifttomakealivingforthemselves,thesinecuristscutoff,thearmydisbanded,theofficersandmenofthenavydischargedandtheshipssold.Anenormousreductionintaxationwouldthusbecomepossible.Therewouldbeagreatadditiontothenetproducewhichremainstobedistributedamongthepartiestoproduction.Butitwouldbeonlysuchanadditionasimprovementintheartshasbeenforalongtimeconstantlymaking,andnotsogreatanadditionassteamandmachineryhavemadewithinthelasttwentyorthirtyyears.Andastheseadditionshavenotalleviatedpauperism,buthaveonlyincreasedrent,sowouldthis.Englishlandownerswouldreapthewholebenefit.Iwillnotdisputethatifallthesethingscouldbedonesuddenly,andwithoutthedestructionandexpenseinvolvedinarevolution,theremightbeatemporaryimprovementintheconditionofthelowestclass;butsuchasuddenandpeaceablereformismanifestlyimpossible.Andifitwere,anytemporaryimprovementwould,bytheprocesswenowseegoingonintheUnitedStates,beultimatelyswallowedupbyincreasedlandvalues.

And,so,intheUnitedStates,ifweweretoreducepublicexpenditurestothelowestpossiblepoint,andmeetthembyrevenuetaxation,thebenefitcouldcertainlynotbegreaterthanthatwhichrailroadshavebrought.Therewouldbemorewealthleftinthehandsofthepeopleasawhole,justastherailroadshaveputmorewealthinthehandsofthepeopleasawhole,butthesameinexorablelawswouldoperateastoitsdistribution.

Theconditionofthosewholivebytheirlaborwouldnotultimatelybeimproved.

Adimconsciousnessofthispervades—or,rather,isbeginningtopervade—themasses,andconstitutesoneofthegravepoliticaldifficultiesthatareclosinginaroundtheAmericanrepublic.Thosewhohavenothingbuttheirlabor,andespeciallytheproletariansofthecities—agrowingclass—carelittleabouttheprodigalityofgovernment,andinmanycasesaredisposedtolookuponitasagoodthing—“furnishingemployment,”or“puttingmoneyincirculation.”Tweed,whorobbedNewYorkasaguerrillachiefmightlevyuponacapturedtown(andwhowasbutatypeofthenewbandittiwhoaregraspingthegovernmentofallourcities),wasundoubtedlypopularwithamajorityofthevoters,thoughhisthievingwasnotorious,andhisspoilswereblazonedinbigdiamondsandlavishpersonalexpenditure.Afterhisindictment,hewastriumphantlyelectedtotheSenate;and,evenwhenarecapturedfugitive,wasfrequentlycheeredonhiswayfromcourttoprison.Hehadrobbedthepublictreasuryofmanymillions,buttheproletariansfeltthathehadnotrobbedthem.Andtheverdictofpoliticaleconomyisthesameastheirs.

Letmebeclearlyunderstood.Idonotsaythatgovernmentaleconomyisnotdesirable;butsimplythatreductionintheexpensesofgovernmentcanhavenodirecteffectinextirpatingpovertyandincreasingwages,solongaslandismonopolized.

Althoughthisistrue,yetevenwithsolereferencetotheinterestsofthelowestclass,noeffortshouldbesparedtokeepdownuselessexpenditures.Themorecomplexandextravagantgovernmentbecomes,themoreitgetstobeapowerdistinctfromandindependentofthepeople,andthemoredifficultdoesitbecometobringquestionsofrealpublicpolicytoapopulardecision.LookatourelectionsintheUnitedStates—uponwhatdotheyturn?Themostmomentousproblemsarepressinguponus,yetsogreatistheamountofmoneyinpolitics,solargearethepersonalinterestsinvolved,thatthemostimportantquestionsof

governmentarebutlittleconsidered.TheaverageAmericanvoterhasprejudices,partyfeelings,generalnotionsofacertainkind,buthegivestothefundamentalquestionsofgovernmentnotmuchmorethoughtthanastreetcarhorsedoestotheprofitsoftheline.Werethisnotthecase,somanyhoaryabusescouldnothavesurvivedandsomanynewonesbeenadded.Anythingthattendstomakegovernmentsimpleandinexpensivetendstoputitundercontrolofthepeopleandtobringquestionsofrealimportancetothefront.Butnoreductionintheexpensesofgovernmentcanofitselfcureormitigatetheevilsthatarisefromaconstanttendencytotheunequaldistributionofwealth.

II.

FromtheDiffusionofEducationandImprovedHabitsofIndustryandThrift

Thereis,andalwayshasbeen,awidespreadbeliefamongthemorecomfortableclassesthatthepovertyandsufferingofthemassesareduetotheirlackofindustry,frugality,andintelligence.Thisbelief,whichatoncesoothesthesenseofresponsibilityandflattersbyitssuggestionofsuperiority,isprobablyevenmoreprevalentincountriesliketheUnitedStates,whereallmenarepoliticallyequal,andwhere,owingtothenewnessofsociety,thedifferentiationintoclasseshasbeenofindividualsratherthanoffamilies,thanitisinoldercountries,wherethelinesofseparationhavebeenlonger,andaremoresharply,drawn.Itisbutnaturalforthosewhocantracetheirownbettercircumstancestothesuperiorindustryandfrugalitythatgavethemastart,andthesuperiorintelligencethatenabledthemtotakeadvantageofeveryopportunity,toimaginethatthosewhoremainpoordososimplyfromlackofthesequalities.

Butwhoeverhasgraspedthelawsofthedistributionofwealth,asinpreviouschapterstheyhavebeentracedout,willseethemistakeinthisnotion.Thefallacyissimilartothatwhichwouldbeinvolvedintheassertionthateveryoneofanumberofcompetitorsmightwinarace.Thatanyonemightistrue;thateveryonemightisimpossible.

For,assoonaslandacquiresavalue,wages,aswehaveseen,donotdependupontherealearningsorproductoflabor,butuponwhatislefttolaborafterrentistakenout;andwhenlandisallmonopolized,asitiseverywhereexceptinthenewestcommunities,rentmustdrivewagesdowntothepointatwhichthepoorestpaidclasswillhejustabletoliveandreproduce,andthuswagesareforcedtoaminimumfixedbywhatiscalledthestandardofcomfort—thatis,theamountofnecessariesandcomfortswhichhabitleadstheworkingclassestodemandasthelowestonwhichtheywillconsenttomaintaintheirnumbers.Thisbeingthecase,industry,skill,frugality,andintelligencecanavailtheindividual

onlyinsofarastheyaresuperiortothegeneralleveljustasinaracespeedcanavailtherunneronlyinsofarasitexceedsthatofhiscompetitors.Ifonemanworkharder,orwithsuperiorskillorintelligencethanordinary,hewillgetahead;butiftheaverageofindustry,skill,orintelligencebebroughtuptothehigherpoint,theincreasedintensityofapplicationwillsecurebuttheoldrateofwages,andhewhowouldgetaheadmustworkharderstill.

OneindividualmaysavemoneyfromhiswagesbylivingasDr.Franklindidwhen,duringhisapprenticeshipandearlyjourneymandays,heconcludedtopracticevegetarianism;andmanypoorfamiliesmightbemademorecomfortablebybeingtaughttopreparethecheapdishestowhichFranklintriedtolimittheappetiteofhisemployerKeimer,asaconditiontohisacceptanceofthepositionofconfuterofopponentstothenewreligionofwhichKeimerwishedtobecometheprophet,butiftheworkingclassesgenerallycametoliveinthatway,wageswouldultimatelyfallinproportion,andwhoeverwishedtogetaheadbythepracticeofeconomy,ortomitigatepovertybyteachingit,wouldbecompelledtodevisesomestillcheapermodeofkeepingsoulandbodytogether.If,underexistingconditions,AmericanmechanicswouldcomedowntotheChinesestandardofliving,theywouldultimatelyhavetocomedowntotheChinesestandardofwages;orifEnglishlaborerswouldcontentthemselveswiththericedietandscantyclothingoftheBengalee,laborwouldsoonbeasillpaidinEnglandasinBengal.TheintroductionofthepotatointoIrelandwasexpectedtoimprovetheconditionofthepoorerclasses,byincreasingthedifferencebetweenthewagestheyreceivedandthecostoftheirliving.Theconsequencesthatdidensuewereariseofrentandaloweringofwages,and,withthepotatoblight,theravagesoffamineamongapopulationthathadalreadyreduceditsstandardofcomfortsolowthatthenextstepwasstarvation.

And,so,ifoneindividualworkmorehoursthantheaverage,hewillincreasehiswages;butthewagesofallcannotbeincreasedinthisway.Itisnotoriousthatinoccupationswhereworkinghoursarelong,wages

arenothigherthanwhereworkinghoursareshorter;generallythereverse,forthelongertheworkingday,themorehelplessdoesthelaborerbecome—thelesstimehashetolookaroundhimanddevelopotherpowersthanthosecalledforthbyhiswork;thelessbecomeshisabilitytochangehisoccupationortotakeadvantageofcircumstances.And,so,theindividualworkmanwhogetshiswifeandchildrentoassisthimmaythusincreasehisincome;butinoccupationswhereithasbecomehabitualforthewifeandchildrenofthelaborertosupplementhiswork,itisnotoriousthatthewagesearnedbythewholefamilydonotontheaverageexceedthoseoftheheadofthefamilyinoccupationswhereitisusualforhimonlytowork.SwissfamilylaborinwatchmakingcompetesincheapnesswithAmericanmachinery.TheBohemiancigarmakersofNewYork,whowork,men,women,andchildren,intheirtenement-houserooms,havereducedthepricesofcigarmakingtolessthantheChineseinSanFranciscoweregetting.

Thesegeneralfactsarewellknown.Theyarefullyrecognizedinstandardpolitico-economicworks,where,however,theyareexplainedupontheMalthusiantheoryofthetendencyofpopulationtomultiplyuptothelimitofsubsistence.Thetrueexplanation,asIhavesufficientlyshown,isinthetendencyofrenttoreducewages.

Astotheeffectsofeducation,itmaybeworthwhiletosayafewwordsspecially,forthereisaprevailingdispositiontoattributetoitsomethinglikeamagicalinfluence.Now,educationisonlyeducationinsofarasitenablesamanmoreeffectivelytousehisnaturalpowers,andthisissomethingthatwhatwecalleducationinverygreatpartfailstodo.Irememberalittlegirl,prettywellalonginherschoolgeographyandastronomy,whowasmuchastonishedtofindthatthegroundinhermother’sbackyardwasreallythesurfaceoftheearth,and,ifyoutalkwiththem,youwillfindthatagooddealoftheknowledgeofmanycollegegraduatesismuchlikethatofthelittlegirl.Theyseldomthinkanybetter,andsometimesnotsowellasmenwhohaveneverbeentocollege.

AgentlemanwhohadspentmanyyearsinAustralia,andknewintimatelythehabitsoftheaborigines(Rev.Dr.Bleesdale),aftergivingsomeinstancesoftheirwonderfulskillintheuseoftheirweapons,inforetellingchangesinthewindandweatherandintrappingtheshyestbirds,oncesaidtome:“Ithinkitagreatmistaketolookontheseblackfellowsasignorant.Theirknowledgeisdifferentfromours,butinittheyaregenerallybettereducated.Assoonastheybegintotoddle,theyaretaughttoplaywithlittleboomerangsandotherweapons,toobserveandtojudge,and,whentheyareoldenoughtotakecareofthemselves,theyarefullyabletodoso—are,infact,inreferencetothenatureoftheirknowledge,whatIshouldcallwell-educatedgentlemen;whichismorethanIcansayformanyofouryoungfellowswhohavehadwhatwecallthebestadvantages,butwhoenteruponmanhoodunabletodoanythingeitherforthemselvesorforothers.”

Bethisasitmay,itisevidentthatintelligence,whichisorshouldbetheaimofeducation,untilitinducesandenablesthemassestodiscoverandremovethecauseoftheunequaldistributionofwealth,canoperateuponwagesonlybyincreasingtheeffectivepoweroflabor.Ithasthesameeffectasincreasedskillorindustry.Anditcanraisethewagesoftheindividualonlyinsofarasitrendershimsuperiortoothers.Whentoreadandwritewererareaccomplishments,aclerkcommandedhighrespectandlargewages,butnowtheabilitytoreadandwritehasbecomesonearlyuniversalastogivenoadvantage.AmongtheChinesetheabilitytoreadandwriteseemsabsolutelyuniversal,butwagesinChinatouchthelowestpossiblepoint.Thediffusionofintelligence,exceptasitmaymakemendiscontentedwithastateofthingswhichcondemnsproducerstoalifeoftoilwhilenon-producerslollinluxury,cannottendtoraisewagesgenerally,orinanywayimprovetheconditionofthelowestclass—the“mudsills”ofsociety,asasouthernsenatoroncecalledthem—whomustrestonthesoil,nomatterhowhighthesuperstructuremaybecarried.Noincreaseoftheeffectivepoweroflaborcanincreasegeneralwages,solongasrentswallowsupallthegain.Thisisnotmerelyadeductionfromprinciples.Itisthefact,provedbyexperience.The

growthofknowledgeandtheprogressofinventionhavemultipliedtheeffectivepoweroflaboroverandoveragainwithoutincreasingwages.InEnglandthereareoveramillionpaupers.IntheUnitedStatesalmshousesareincreasingandwagesaredecreasing.

Itistruethatgreaterindustryandskill,greaterprudence,andahigherintelligence,are,asarule,foundassociatedwithabettermaterialconditionoftheworkingclasses;butthatthisiseffect,notcause,isshownbytherelationofthefacts.Whereverthematerialconditionofthelaboringclasseshasbeenimproved,improvementintheirpersonalqualitieshasfollowed,andwherevertheirmaterialconditionhasbeendepressed,deteriorationinthesequalitieshasbeentheresult;butnowherecanimprovementinmaterialconditionbeshownastheresultoftheincreaseofindustry,skill,prudence,orintelligenceinaclasscondemnedtotoilforabareliving,thoughthesequalitieswhenonceattained(or,rather,theirconcomitant—theimprovementinthestandardofcomfort)offerastrong,and,inmanycases,asufficient,resistancetotheloweringofmaterialcondition.

Thefactis,thatthequalitiesthatraisemanabovetheanimalaresuperimposedonthosewhichheshareswiththeanimal,andthatitisonlyasheisrelievedfromthewantsofhisanimalnaturethathisintellectualandmoralnaturecangrow.Compelamantodrudgeryforthenecessitiesofanimalexistence,andhewilllosetheincentivetoindustry—theprogenitorofskill—andwilldoonlywhatheisforcedtodo.Makehisconditionsuchthatitcannotbemuchworse,whilethereislittlehopethatanythinghecandowillmakeitmuchbetter,andhewillceasetolookbeyondtheday.Denyhimleisure—andleisuredoesnotmeanthewantofemployment,buttheabsenceoftheneedwhichforcestouncongenialemployment—andyoucannot,evenbyrunningthechildthroughacommonschoolandsupplyingthemanwithanewspaper,makehimintelligent.

Itistruethatimprovementinthematerialconditionofapeopleorclass

maynotshowimmediatelyinmentalandmoralimprovement.Increasedwagesmayatfirstbetakenoutinidlenessanddissipation.Buttheywillultimatelybringincreasedindustry,skill,intelligence,andthrift.Comparisonsbetweendifferentcountries;betweendifferentclassesinthesamecountry;betweenthesamepeopleatdifferentperiods;andbetweenthesamepeoplewhentheirconditionsarechangedbyemigration,show,asaninvariableresult,thatthepersonalqualitiesofwhichwearespeakingappearasmaterialconditionsareimproved,anddisappearasmaterialconditionsaredepressed.PovertyistheSloughofDespondwhichBunyansawinhisdream,andintowhichgoodbooksmaybetossedforeverwithoutresult.Tomakepeopleindustrious,prudent,skillful,andintelligent,theymustberelievedfromwant.Ifyouwouldhavetheslaveshowthevirtuesofthefreeman,youmustfirstmakehimfree.

III.

FromCombinationsofWorkmen

Itisevidentfromthelawsofdistribution,aspreviouslytraced,thatcombinationsofworkmencanadvancewages,andthisnotattheexpenseofotherworkmen,asissometimessaid,noryetattheexpenseofcapital,asisgenerallybelieved;but,ultimately,attheexpenseofrent.Thatnogeneraladvanceinwagescanbesecuredbycombination;thatanyadvanceinparticularwagesthussecuredmustreduceotherwagesortheprofitsofcapital,orboth—areideasthatspringfromtheerroneousnotionthatwagesaredrawnfromcapital.Thefallacyoftheseideasisdemonstrated,notalonebythelawsofdistributionaswehaveworkedthemout,butbyexperience,sofarasithasgone.Theadvanceofwagesinparticulartradesbycombinationsofworkmen,ofwhichtherearemanyexamples,hasnowhereshownanyeffectinloweringwagesinothertrades,orinreducingtherateofprofits.Exceptasitmayaffecthisfixedcapitalorcurrentengagements,adiminutionofwagescanbenefit,andan

increaseofwagesinjureanemployeronlyinsofarasitgiveshimanadvantageorputshimatadisadvantageascomparedwithotheremployers.Theemployerwhofirstsucceedsinreducingthewagesofhishands,orisfirstcompelledtopayanadvance,gainsanadvantage,orisputatadisadvantageinregardtohiscompetitors,whichceaseswhenthemovementincludesthemalso.Sofar,however,asthechangeinwagesaffectshiscontractsorstockonband,bychangingtherelativecostofproduction,itmaybetohimarealgainorloss,thoughthisgainorloss,beingpurelyrelative,disappearswhenthewholecommunityisconsidered.And,ifthechangeinwagesworksachangeinrelativedemand,itmayrendercapitalfixedinmachinery,buildings,orotherwise,moreorlessprofitable.But,inthis,anewequilibriumissoonreached;for,especiallyinaprogressivecountry,fixedcapitalisonlysomewhatlessmobilethancirculatingcapital.Ifthereistoolittleinacertainform,thetendencyofcapitaltoassumethatformsoonbringsituptotherequiredamount;ifthereistoomuch,thecessationofincrementsoonrestoresthelevel.

But,whileachangeintherateofwagesinanyparticularoccupationmayinduceachangeintherelativedemandforlabor,itcanproducenochangeintheaggregatedemand.Forinstance,letussupposethatacombinationoftheworkmenengagedinanyparticularmanufactureraisewagesinonecountry,whileacombinationofemployersreducewagesinthesamemanufactureinanothercountry.Ifthechangebegreatenough,thedemand,orpartofthedemand,inthefirstcountrywillnowbesuppliedbyimportationofsuchmanufacturesfromthesecond.But,evidently,thisincreaseinimportationsofaparticularkindmustnecessitateeitheracorrespondingdecreaseinimportationsofotherkinds,oracorrespondingincreaseinexportations.For,itisonlywiththeproduceofitslaborandcapitalthatonecountrycandemand,orcanobtain,inexchange,theproduceofthelaborandcapitalofanother.Theideathattheloweringofwagescanincrease,ortheincreaseofwagescandiminish,thetradeofacountry,isasbaselessastheideathattheprosperityofacountrycanbeincreasedbytaxesonimports,or

diminishedbytheremovalofrestrictionsontrade.Ifallwagesinanyparticularcountryweretobedoubled,thatcountrywouldcontinuetoexportandimportthesamethings,andinthesameproportions;forexchangeisdeterminednotbyabsolute,butbyrelative,costofproduction.But,ifwagesinsomebranchesofproductionweredoubled,andinothersnotincreased,ornotincreasedsomuch,therewouldbeachangeintheproportionofthevariousthingsimported,butnochangeintheproportionbetweenexportsandimports.

Whilemostoftheobjectionsmadetothecombinationofworkmenfortheadvanceofwagesarethusbaseless,whilethesuccessofsuchcombinationscannotreduceotherwages,ordecreasetheprofitsofcapital,orinjuriouslyaffectnationalprosperity,yetsogreatarethedifficultiesinthewayoftheeffectivecombinationsoflaborers,thatthegoodthatcanbeaccomplishedbythemisextremelylimited,whilethereareinherentdisadvantagesintheprocess.

Toraisewagesinaparticularoccupationoroccupations,whichisallthatanycombinationofworkmenyetmadehasbeenequaltoattempting,ismanifestlyataskthedifficultyofwhichprogressivelyincreases.Forthehigherarewagesofanyparticularkindraisedabovetheirnormallevelwithotherwages,thestrongerarethetendenciestobringthemback.Thus,ifaprinters’union,byasuccessfulorthreatenedstrike,raisethewagesoftypesettingtenpercent.abovethenormalrateascomparedwithotherwages,relativedemandandsupplyareatonceaffected.Ontheonehand,thereisatendencytoadiminutionoftheamountoftypesettingcalledfor;and,ontheother,thehigherrateofwagestendstoincreasethenumberofcompositorsinwaysthestrongestcombinationcannotaltogetherprevent.Iftheincreasebetwentypercent.,thesetendenciesaremuchstronger;ifitisfiftypercent.,theybecomestrongerstill,andsoon.Sothatpractically-evenincountrieslikeEngland,wherethelinesbetweendifferenttradesaremuchmoredistinctanddifficulttopassthanincountriesliketheUnitedStates—thatwhichtrades’unions,evenwhensupportingeachother,candointhewayofraisingwagesis

comparativelylittle,andthislittle,moreover,isconfinedtotheirownsphere,anddoesnotaffectthelowerstratumofunorganizedlaborers,whoseconditionmostneedsalleviationandultimatelydeterminesthatofallabovethem.Theonlywaybywhichwagescouldberaisedtoanyextentandwithanypermanencebythismethodwouldbebyageneralcombination,suchaswasaimedatbytheInternationals,whichshouldincludelaborersofallkinds.Butsuchacombinationmaybesetdownaspracticallyimpossible,forthedifficultiesofcombination,greatenoughinthemosthighlypaidandsmallesttrades,becomegreaterandgreateraswedescendintheindustrialscale.

Nor,inthestruggleofendurance,whichistheonlymethodwhichcombinationsnottoworkforlessthanacertainminimumhaveofeffectingtheincreaseofwages,mustitbeforgottenwhoaretherealpartiespittedagainsteachother.Itisnotlaborandcapital.Itislaborersontheonesideandtheownersoflandontheother.Ifthecontestwerebetweenlaborandcapital,itwouldbeonmuchmoreequalterms.Forthepowerofcapitaltostandoutisonlysomelittlegreaterthanthatoflabor.Capitalnotonlyceasestoearnanythingwhennotused,butitgoestowaste—forinnearlyallitsformsitcanbemaintainedonlybyconstantreproduction.Butlandwillnotstarvelikelaborersorgotowastelikecapital—itsownerscanwait.Theymaybeinconvenienced,itistrue,butwhatisinconveniencetothem,isdestructiontocapitalandstarvationtolabor.

TheagriculturallaborersincertainpartsofEnglandarenowendeavoringtocombineforthepurposeofsecuringanincreaseintheirmiserablylowwages.Ifitwascapitalthatwasreceivingtheenormousdifferencebetweentherealproduceoftheirlaborandthepittancetheygetoutofit,theywouldhavebuttomakeaneffectivecombinationtosecuresuccess;forthefarmers,whoaretheirdirectemployers,canaffordtogowithoutlaborbutlittle,ifany,betterthanthelaborerscanaffordtogowithoutwages.Butthefarmerscannotyieldmuchwithoutareductionofrent;andthusitisbetweenthelandownersandthelaborersthatthereal

strugglemustcome.Supposethecombinationtobesothoroughastoincludeallagriculturallaborers,andtopreventfromdoingsoallwhomightbetemptedtotaketheirplaces.Thelaborersrefusetoworkexceptataconsiderableadvanceofwages;thefarmerscangiveitonlybysecuringaconsiderablereductionofrent,andhavenowaytobacktheirdemandsexceptasthelaborersbacktheirs,byrefusingtogoonwithproduction.Ifcultivationthuscometoadead-lock,thelandownerswouldloseonlytheirrent,whilethelandimprovedbylyingfallow.Butthelaborerswouldstarve.AndifEnglishlaborersofallkindswereunitedinonegrandleagueforageneralincreaseofwages,therealcontestwouldbethesame,andunderthesameconditions.Forwagescouldnotbeincreasedexcepttothedecreaseofrent;andinageneraldead-lock,landownerscouldlive,whilelaborersofallsortsmuststarveoremigrate.TheownersofthelandofEnglandarebyvirtueoftheirownershipthemastersofEngland.Sotrueisitthat“towhomsoeverthesoilatanytimebelongs,tohimbelongthefruitsofit.”ThewhiteparasolsandtheelephantsmadwithpridepassedwiththegrantofEnglishland,andthepeopleatlargecanneverregaintheirpoweruntilthatgrantisresumed.WhatistrueofEngland,isuniversallytrue.

Itmaybesaidthatsuchadead-lockinproductioncouldneveroccur.Thisistrue;buttrueonlybecausenosuchthoroughcombinationoflaborasmightproduceitispossible.Butthefixedanddefinitenatureoflandenableslandownerstocombinemuchmoreeasilyandefficientlythaneitherlaborersorcapitalists.Howeasyandefficienttheircombinationis,therearemanyhistoricalexamples.Andtheabsolutenecessityfortheuseofland,andthecertaintyinallprogressivecountriesthatitmustincreaseinvalue,produceamonglandowners,withoutanyformalcombination,alltheeffectsthatcouldbeproducedbythemostrigorouscombinationamonglaborersorcapitalists.Deprivealaborerofopportunityofemployment,andhewillsoonbeanxioustogetworkonanyterms,butwhentherecedingwaveofspeculationleavesnominallandvaluesclearlyaboverealvalues,whoeverhaslivedinagrowingcountryknowswithwhattenacitylandownersholdon.

And,besidesthesepracticaldifficultiesintheplanofforcingbyenduranceanincreaseofwages,thereareinsuchmethodsinherentdisadvantageswhichworkingmenshouldnotblink.Ispeakwithoutprejudice,forIamstillanhonorarymemberoftheunionwhich,whileworkingatmytrade,Ialwaysloyallysupported.But,see:Themethodsbywhichatradeunioncanaloneactarenecessarilydestructive;itsorganizationisnecessarilytyrannical.Astrike,whichistheonlyrecoursebywhichatradeunioncanenforceitsdemands,isadestructivecontest—justsuchacontestasthattowhichaneccentric,called“TheMoneyKing,”once,intheearlydaysofSanFrancisco,challengedamanwhohadtauntedhimwithmeanness,thattheyshouldgodowntothewharfandalternatelytosstwenty-dollarpiecesintothebayuntilonegavein.Thestruggleofenduranceinvolvedinastrikeis,really,whatithasoftenbeencomparedto—awar;and,likeallwar,itlessenswealth.Andtheorganizationforitmust,liketheorganizationforwar,betyrannical.Aseventhemanwhowouldfightforfreedom,must,whenheentersanarmy,giveuphispersonalfreedomandbecomeamerepartinagreatmachine,somustitbewithworkmenwhoorganizeforastrike.Thesecombinationsare,therefore,necessarilydestructiveoftheverythingswhichworkmenseektogainthroughthem—wealthandfreedom.

ThereisanancientHindoomodeofcompellingthepaymentofajustdebt,tracesofsomethingakintowhichSirHenryMainehasfoundinthelawsoftheIrishBrehons.Itiscalled,sittingdharna—thecreditorseekingenforcementofhisdebtbysittingdownatthedoorofthedebtor,andrefusingtoeatordrinkuntilheispaid.

Likethisisthemethodoflaborcombinations.Intheirstrikes,trades’unionssitdharna.But,unliketheHindoo,theyhavenotthepowerofsuperstitiontobackthem.

IV.

FromCo-operation

Itisnow,andhasbeenforsometime,thefashiontopreachco-operationasthesovereignremedyforthegrievancesoftheworkingclasses.But,unfortunatelyfortheefficacyofco-operationasaremedyforsocialevils,theseevils,aswehaveseen,donotarisefromanyconflictbetweenlaborandcapital;andifco-operationwereuniversal,itcouldnotraisewagesorrelievepoverty.Thisisreadilyseen.

Co-operationisoftwokinds—co-operationinsupplyandco-operationinproduction.Now,co-operationinsupply,letitgoasfarasitmayinexcludingmiddlemen,onlyreducesthecostofexchanges.Itissimplyadevicetosavelaborandeliminaterisk,anditseffectupondistributioncanbeonlythatoftheimprovementsandinventionswhichhaveinmoderntimessowonderfullycheapenedandfacilitatedexchanges—viz.,toincreaserent.Andco-operationinproductionissimplyareversiontothatformofwageswhichstillprevailsinthewhalingservice,andistheretermeda“lay.”Itisthesubstitutionofproportionatewagesforfixedwages—asubstitutionofwhichthereareoccasionalinstancesinalmostallemployments;or,ifthemanagementislefttotheworkmen,andthecapitalistbuttakeshisproportionofthenetproduce,itissimplythesystemthathasprevailedtoalargeextentinEuropeanagriculturesincethedaysoftheRomanEmpire—thecolonialormetayersystem.Allthatisclaimedforco-operationinproductionis,thatitmakestheworkmanmoreactiveandindustrious—inotherwords,thatitincreasestheefficiencyoflabor.Thusitseffectisinthesamedirectionasthesteamengine,thecottongin,thereapingmachine—inshort,allthethingsinwhichmaterialprogressconsists,anditcanproduceonlythesameresult—viz.,theincreaseofrent.

Itisastrikingproofofhowfirstprinciplesareignoredindealingwithsocialproblems,thatincurrenteconomicandsemi-economicliteraturesomuchimportanceisattachedtoco-operationasameansforincreasingwagesandrelievingpoverty.Thatitcanhavenosuchgeneraltendencyis

apparent.

Waivingallthedifficultiesthatunderpresentconditionsbesetco-operationeitherofsupplyorofproduction,andsupposingitsoextendedastosupplantpresentmethods—thatco-operativestoresmadetheconnectionbetweenproducerandconsumerwiththeminimumofexpense,andco-operativeworkshops,factories,farms,andmines,abolishedtheemployingcapitalistwhopaysfixedwages,andgreatlyincreasedtheefficiencyoflabor—whatthen?Why,simplythatitwouldbecomepossibletoproducethesameamountofwealthwithlesslabor,andconsequentlythattheownersofland,thesourceofallwealth,couldcommandagreateramountofwealthfortheuseoftheirland.Thisisnotamatterofmeretheory;itisprovedbyexperienceandbyexistingfacts.Improvedmethodsandimprovedmachineryhavethesameeffectthatco-operationaimsat—ofreducingthecostofbringingcommoditiestotheconsumerandincreasingtheefficiencyoflabor,anditisintheserespectsthattheoldercountrieshavetheadvantageofnewsettlements.But,asexperiencehasamplyshown,improvementsinthemethodsandmachineryofproductionandexchangehavenotendencytoimprovetheconditionofthelowestclass,andwagesarelowerandpovertydeeperwhereexchangegoesonattheminimumofcostandproductionhasthebenefitofthebestmachinery.Theadvantagebutaddstorent.

Butsupposeco-operationbetweenproducersandlandowners?Thatwouldsimplyamounttothepaymentofrentinkind—thesamesystemunderwhichmuchlandisrentedinCaliforniaandtheSouthernStateswherethelandownergetsashareofthecrop.SaveasamatterofcomputationitinnowisediffersfromthesystemwhichprevailsinEnglandofafixedmoneyrent.Callitco-operation,ifyouchoose,thetermsofthecooperationwouldstillbefixedbythelawswhichdeterminerent,andwhereverlandwasmonopolized,increaseinproductivepowerwouldsimplygivetheownersofthelandthepowertodemandalargershare.

Thatco-operationisbysomanybelievedtobethesolutionofthe“laborquestion”arisesfromthefactthat,whereithasbeentried,ithasinmanyinstancesimprovedperceptiblytheconditionofthoseimmediatelyengagedinit.Butthisisduesimplytothefactthatthesecasesareisolated.Justasindustry,economy,orskillmayimprovetheconditionoftheworkmenwhopossesstheminsuperiordegree,butceasetohavethiseffectwhenimprovementintheserespectsbecomesgeneral,soaspecialadvantageinprocuringsupplies,oraspecialefficiencygiventosomelabor,maysecureadvantageswhichwouldbelostassoonastheseimprovementsbecamesogeneralastoaffectthegeneralrelationsofdistribution.Andthetruthis,that,savepossiblyineducationaleffects,co-operationcanproducenogeneralresultsthatcompetitionwillnotproduce.justasthecheap-for-cashstoreshaveasimilareffectuponpricesastheco-operativesupplyassociations,sodoescompetitioninproductionleadtoasimilaradjustmentofforcesanddivisionofproceedsaswouldco-operativeproduction.Thatincreasingproductivepowerdoesnotaddtotherewardoflabor,isnotbecauseofcompetition,butbecausecompetitionisone-sided.Land,withoutwhichtherecanbenoproduction,ismonopolized,andthecompetitionofproducersforitsuseforceswagestoaminimumandgivesalltheadvantageofincreasingproductivepowertolandowners,inhigherrentsandincreasedlandvalues.Destroythismonopoly,andcompetitioncouldexistonlytoaccomplishtheendwhichco-operationaimsat—togivetoeachwhatbefairlyearns.Destroythismonopoly,andindustrymustbecometheco-operationofequals.

V.

FromGovernmentalDirectionandInterference

ThelimitswithinwhichIwishtokeepthisbookwillnotpermitanexaminationindetailofthemethodsinwhichitisproposedtomitigateorextirpatepovertybygovernmentalregulationofindustryand

accumulation,andwhichintheirmostthorough-goingformarecalledsocialistic.Norisitnecessary,forthesamedefectsattachtothemall.Thesearethesubstitutionofgovernmentaldirectionfortheplayofindividualaction,andtheattempttosecurebyrestrictionwhatcanbetterbesecuredbyfreedom.AstothetruthsthatareinvolvedinsocialisticideasIshallhavesomethingtosayhereafter;butitisevidentthatwhateversavorsofregulationandrestrictionisinitselfbad,andshouldnotberesortedtoifanyothermodeofaccomplishingthesameendpresentsitself.Forinstance,totakeoneofthesimplestandmildestoftheclassofmeasuresIreferto—agraduatedtaxonincomes.Theobjectatwhichitaims,thereductionorpreventionofimmenseconcentrationsofwealth,isgood;butthismeansinvolvestheemploymentofalargenumberofofficialsclothedwithinquisitorialpowers;temptationstobribery,andperjury,andallothermeansofevasion,whichbegetademoralizationofopinion,andputapremiumuponunscrupulousnessandataxuponconscience;and,finally,justinproportionasthetaxaccomplishesitseffect,alesseningintheincentivetotheaccumulationofwealth,whichisoneofthestrongforcesofindustrialprogress.While,iftheelaborateschemesforregulatingeverythingandfindingaplaceforeverybodycouldbecarriedout,weshouldhaveastateofsocietyresemblingthatofancientPeru,orthatwhich,totheireternalhonor,theJesuitsinstitutedandsolongmaintainedinParaguay.

Iwillnotsaythatsuchastateasthisisnotabettersocialstatethanthattowhichwenowseemtobetending,forinancientPeru,thoughproductionwentonunderthegreatestdisadvantages,fromthewantofironandthedomesticanimals,yettherewasnosuchthingaswant,andthepeoplewenttotheirworkwithsongs.Butthisitisunnecessarytodiscuss.Socialisminanythingapproachingsuchaform,modernsocietycannotsuccessfullyattempt.Theonlyforcethathaseverprovedcompetentforit—astronganddefinitereligiousfaith—iswantingandisdailygrowingless.Wehavepassedoutofthesocialismofthetribalstate,andcannotre-enteritagainexceptbyaretrogressionthatwouldinvolveanarchyandperhapsbarbarism.Ourgovernments,asisalready

plainlyevident,wouldbreakdownintheattempt.Insteadofanintelligentawardofdutiesandearnings,weshouldhaveaRomandistributionofSiciliancorn,andthedemagoguewouldsoonbecometheImperator.

Theidealofsocialismisgrandandnoble;anditis,Iamconvinced,possibleofrealization;butsuchastateofsocietycannotbemanufactured—itmustgrow.Societyisanorganism,notamachine.Itcanliveonlybytheindividuallifeofitsparts.Andinthefreeandnaturaldevelopmentofallthepartswillbesecuredtheharmonyofthewhole.AllthatisnecessarytosocialregenerationisincludedinthemottoofthoseRussianpatriotssometimescalledNihilists——“LandandLiberty!”

VI.

FromaMoreGeneralDistributionofLand

Thereisarapidlygrowingfeelingthatthetenureoflandisinsomemannerconnectedwiththesocialdistresswhichmanifestsitselfinthemostprogressivecountries;butthisfeelingasyetmostlyshowsitselfinpropositionswhichlooktothemoregeneraldivisionoflandedproperty—inEngland,freetradeinland,tenantright,ortheequalpartitionoflandedestatesamongheirs;intheUnitedStates,restrictionsuponthesizeofindividualholdings.IthasbeenalsoproposedinEnglandthatthestateshouldbuyoutthelandlords,andintheUnitedStatesthatgrantsofmoneyshouldbemadetoenablethesettlementsofcoloniesuponpubliclands.Theformerpropositionletuspassforthepresent;thelatter,sofarasitsdistinctivefeatureisconcerned,fallsintothecategoryofthemeasuresconsideredinthelastsection.Itneedsnoargumenttoshowtowhatabusesanddemoralizationgrantsofpublicmoneyorcreditwouldlead.

HowwhattheEnglishwriterscall“freetradeinland”—theremovalof

dutiesandrestrictionsuponconveyances—couldfacilitatethedivisionofownershipinagriculturalland,Icannotsee,thoughitmighttosomeextenthavethateffectasregardstownproperty.Theremovalofrestrictionsuponbuyingandsellingwouldmerelypermittheownershipoflandtoassumemorequicklytheformtowhichittends.Now,thatthetendencyinGreatBritainistoconcentrationisshownbythefactthat,inspiteofthedifficultiesinterposedbythecostoftransfer,landownershiphasbeenandissteadilyconcentratingthere,andthatthistendencyisageneraloneisshownbythefactthatthesameprocessofconcentrationisobservableintheUnitedStates.IsaythisunhesitatinglyinregardtotheUnitedStates,althoughstatisticaltablesaresometimesquotedtoshowadifferenttendency.Buthow,insuchacountryastheUnitedStates,theownershipoflandmaybereallyconcentrating,whilecensustablesshowratheradiminutionintheaveragesizeofholdings,isreadilyseen.Aslandisbroughtintouse,and,withthegrowthofpopulation,passesfromalowertoahigherorintenseruse,thesizeofholdingstendstodiminish.Asmallstockrangewouldbealargefarm,asmallfarmwouldbealargeorchard,vineyard,nursery,orvegetablegarden,andapatchoflandwhichwouldbesmallevenforthesepurposeswouldmakeaverylargecityproperty.Thus,thegrowthofpopulation,whichputslandstohigherorintenseruses,tendsnaturallytoreducethesizeofholdings,byaprocessverymarkedinnewcountries;butwiththismaygoonatendencytotheconcentrationoflandownership,which,thoughnotrevealedbytableswhichshowtheaveragesizeofholdings,isjustasclearlyseen.Averageholdingsofoneacreinacitymayshowamuchgreaterconcentrationoflandownershipthanaverageholdingsof640acresinanewlysettledtownship.IrefertothistoshowthefallacyinthedeductionsdrawnfromthetableswhicharefrequentlyparadedintheUnitedStatestoshowthatlandmonopolyisanevilthatwillcureitself.Onthecontrary,itisobviousthattheproportionoflandownerstothewholepopulationisconstantlydecreasing.

AndthatthereisintheUnitedStates,asthereisinGreatBritain,astrongtendencytotheconcentrationoflandownershipinagricultureisclearly

seen.As,inEnglandandIreland,smallfarmsarebeingthrownintolargerones,soinNewEngland,accordingtothereportsoftheMassachusettsBureauofLaborStatistics,isthesizeoffarmsincreasing.ThistendencyisevenmoreclearlynoticeableinthenewerStatesandTerritories.Onlyafewyearsagoafarmof320acreswould,underthesystemofagricultureprevailinginthenorthernpartsoftheUnion,haveanywherebeenalargeone,probablyasmuchasonemancouldcultivatetoadvantage.InCalifornianowtherearefarms(notcattleranges)offive,ten,twenty,fortyandsixtythousandacres,whilethemodelfarmofDakotaembraces100,000acres.Thereasonisobvious.Itistheapplicationofmachinerytoagricultureandthegeneraltendencytoproductiononalargescale.Thesametendencywhichsubstitutesthefactory,withitsarmyofoperatives,formanyindependenthand-loomweavers,isbeginningtoexhibititselfinagriculture.

Now,theexistenceofthistendencyshowstwothings:first,thatanymeasureswhichmerelypermitorfacilitatethegreatersubdivisionoflandwouldbeinoperative;and,second,thatanymeasureswhichwouldcompelitwouldhaveatendencytocheckproduction.Iflandinlargebodiescanbecultivatedmorecheaplythanlandinsmallbodies,torestrictownershiptosmallbodieswillreducetheaggregateproductionofwealth,and,insofarassuchrestrictionsareimposedandtakeeffect,willtheytendtodiminishthegeneralproductivenessoflaborandcapital.

Theeffort,therefore,tosecureafairerdivisionofwealthbysuchrestrictionsisliabletothedrawbackoflesseningtheamounttobedivided.Thedeviceislikethatofthemonkey,who,dividingthecheesebetweenthecats,equalizedmattersbytakingabiteoffthebiggestpiece.

Butthereisnotmerelythisobjection,whichweighsagainsteverypropositiontorestricttheownershipofland,withaforcethatincreaseswiththeefficiencyoftheproposedmeasure.Thereisthefurtherandfatalobjectionthatrestrictionwillnotsecuretheendwhichisaloneworthaimingat—afairdivisionoftheproduce.Itwillnotreducerent,and

thereforecannotincreasewages.Itmaymakethecomfortableclasseslarger,butwillnotimprovetheconditionofthoseinthelowestclass.

IfwhatisknownastheUlstertenantrightwereextendedtothewholeofGreatBritain,itwouldbebuttocarveoutoftheestateofthelandlordanestateforthetenant.Theconditionofthelaborerwouldnotbeawhitimproved.Iflandlordswereprohibitedfromaskinganincreaseofrentfromtheirtenantsandfromejectingatenantsolongasthefixedrentwaspaid,thebodyoftheproducerswouldgainnothing.Economicrentwouldstillincrease,andwouldstillsteadilylessentheproportionoftheproducegoingtolaborandcapital.Theonlydifferencewouldbethatthetenantsofthefirstlandlords,whowouldbecomelandlordsintheirturn,wouldprofitbytheincrease.

Ifbyarestrictionupontheamountoflandanyoneindividualmighthold,bytheregulationofdevisesandsuccessions,orbycumulativetaxation,thefewthousandlandholdersofGreatBritainshouldbeincreasedbytwoorthreemillion,thesetwoorthreemillionpeoplewouldbegainers.Buttherestofthepopulationwouldgainnothing.Theywouldhavenomoreshareintheadvantagesoflandownershipthanbefore.Andif,whatismanifestlyimpossible,afairdistributionofthelandweremadeamongthewholepopulation,givingtoeachhisequalshare,andlawsenactedwhichwouldinterposeabarriertothetendencytoconcentrationbyforbiddingtheholdingbyanyoneofmorethanthefixedamount,whatwouldbecomeoftheincreaseofpopulation?

JustwhatmaybeaccomplishedbythegreaterdivisionoflandmaybeseeninthosedistrictsofFranceandBelgiumwhereminutedivisionprevails.Thatsuchadivisionoflandisonthewholemuchbetter,andthatitgivesafarmorestablebasistothestatethanthatwhichprevailsinEngland,therecanbenodoubt.Butthatitdoesnotmakewagesanyhigherorimprovetheconditionoftheclasswhohaveonlytheirlabor,isequallyclear.TheseFrenchandBelgianpeasantspracticearigideconomyunknowntoanyoftheEnglish-speakingpeoples.Andifsuch

strikingsymptomsofthepovertyanddistressofthelowestclassarenotapparentasontheothersideofthechannel,itmust,Ithink,beattributed,notonlytothisfact,buttoanotherfact,whichaccountsforthecontinuanceoftheminutedivisionoftheland—thatmaterialprogresshasnotbeensorapid.

Neitherhaspopulationincreasedwiththesamerapidity(onthecontraryithasbeennearlystationary),norhaveimprovementsinthemodesofproductionbeensogreat.Nevertheless,M.deLaveleye,allofwhoseprepossessionsareinfavorofsmallholdings,andwhosetestimonywillthereforecarrymoreweightthanthatofEnglishobservers,whomaybesupposedtoharboraprejudiceforthesystemoftheirowncountry,statesinhispaperontheLandSystemsofBelgiumandHolland,printedbytheCobdenClub,thattheconditionofthelaborerisworseunderthissystemoftheminutedivisionoflandthanitisinEngland;whilethetenantfarmers—fortenancylargelyprevailsevenwherethemorcellementisgreatest—arerack-rentedwithamercilessnessunknowninEngland,andeveninIreland,andthefranchise“sofarfromraisingtheminthesocialscale,isbutasourceofmortificationandhumiliationtothem,fortheyareforcedtovoteaccordingtothedictatesofthelandlordinsteadoffollowingthedictatesoftheirowninclinationandconvictions.”

Butwhilethesubdivisionoflandcanthusdonothingtocuretheevilsoflandmonopoly,whileitcanhavenoeffectinraisingwagesorinimprovingtheconditionofthelowestclasses,itstendencyistopreventtheadoptionorevenadvocacyofmorethoroughgoingmeasures,andtostrengthentheexistingunjustsystembyinterestingalargernumberinitsmaintenance.M.deLaveleye,inconcludingthepaperfromwhichIhavequoted,urgesthegreaterdivisionoflandasthesurestmeansofsecuringthegreatlandownersofEnglandfromsomethingfarmoreradical.Althoughinthedistrictswherelandissominutelydivided,theconditionofthelaboreris,hestates,theworstinEuropeandtherentingfarmerismuchmoregrounddownbyhislandlordthantheIrishtenant,yet“feelingshostiletosocialorder,”M.deLaveleyegoesontosay,“donot

manifestthemselves,”because—

“Thetenant,althoughgrounddownbytheconstantriseofrents,livesamonghisequals,peasantslikehimselfwhohavetenantswhomtheyusejustasthelargelandholderdoeshis.Hisfather,hisbrother,perhapsthemanhimself,possessessomethinglikeanacreofland,whichheletsatashigharentashecanget.Inthepublichousepeasantproprietorswillboastofthehighrentstheygetfortheirlands,justastheymightboastofhavingsoldtheirpigsorpotatoesverydear.Lettingatashigharentaspossiblecomesthustoseemtohimtobequiteamatterofcourse,andheneverdreamsoffindingfaultwitheitherthelandownersasaclassorwithpropertyinland.Hismindisnotlikelytodwellonthenotionofacasteofdomineeringlandlords,of’bloodthirstytyrants,’fatteningonthesweatofimpoverishedtenantsanddoingnoworkthemselves;forthosewhodrivethehardestbargainsarenotthegreatlandownersbuthisownfellows.Thus,thedistributionofanumberofsmallpropertiesamongthepeasantryformsakindoframpartandsafeguardfortheholdersoflargeestates,andpeasantpropertymaywithoutexaggerationbecalledthelightningconductorthatavertsfromsocietydangerswhichmightotherwiseleadtoviolentcatastrophes.

”Theconcentrationoflandinlargeestatesamongasmallnumberoffamiliesisasortofprovocationoflevelinglegislation.ThepositionofEngland,soenviableinmanyrespects,seemstometobeinthisrespectfullofdangerforthefuture.“

Tome,fortheverysamereasonthatM.deLaveleyeexpresses,thepositionofEnglandseemsfullofhope.

Letusabandonallattempttogetridoftheevilsoflandmonopolybyrestrictinglandownership.Anequaldistributionoflandisimpossible,andanythingshortofthatwouldbeonlyamitigation,notacure,andamitigationthatwouldpreventtheadoptionofacure.Norisanyremedyworthconsideringthatdoesnotfallinwiththenaturaldirectionofsocial

development,andswim,sotospeak,withthecurrentofthetimes.Thatconcentrationistheorderofdevelopmenttherecanbenomistaking—theconcentrationofpeopleinlargecities,theconcentrationofhandicraftsinlargefactories,theconcentrationoftransportationbyrailroadandsteamshiplines,andofagriculturaloperationsinlargefields.Themosttrivialbusinessesarebeingconcentratedinthesameway—errandsarerunandcarpetsacksarecarriedbycorporations.Allthecurrentsofthetimeruntoconcentration.Toresistitsuccessfullywemustthrottlesteamanddischargeelectricityfromhumanservice.

Tosaynothingofsuperiorwantofconscience,whichisoftenthedeterminingqualitywhichmakesamillionaireoutofonewhootherwisemighthavebeenapoorman.

Franklin,inhisinimitableway,relateshowKeimerfinallybrokehisresolutionandorderingaroastpiginvitedtwoladyfriendstodinewithhim,butthepigbeingbroughtinbeforethecompanyarrived,Keimercouldnotresistthetemptationandateitallhimself.

[BacktoTableofContents]

ChapterIITheTrueRemedy

Wehavetracedtheunequaldistributionofwealthwhichisthecurseandmenaceofmoderncivilizationtotheinstitutionofprivatepropertyinland.Wehaveseenthatsolongasthisinstitutionexistsnoincreaseinproductivepowercanpermanentlybenefitthemasses;but,onthecontrary,musttendstillfurthertodepresstheircondition.Wehaveexaminedalltheremedies,shortoftheabolitionofprivatepropertyinland,whicharecurrentlyreliedonorproposedforthereliefofpovertyandthebetterdistributionofwealth,andhavefoundthemallinefficaciousorimpracticable.

Thereisbutonewaytoremoveanevil—andthatistoremoveitscause.Povertydeepensaswealthincreases,andwagesareforceddownwhileproductivepowergrows,becauseland,whichisthesourceofallwealthandthefieldofalllabor,ismonopolized.Toextirpatepoverty,tomakewageswhatjusticecommandstheyshouldbe,thefullearningsofthelaborer,wemustthereforesubstitutefortheindividualownershipoflandacommonownership.Nothingelsewillgotothecauseoftheevil—innothingelseistheretheslightesthope.

This,then,istheremedyfortheunjustandunequaldistributionofwealthapparentinmoderncivilization,andforalltheevilswhichflowfromit:

Wemustmakelandcommonproperty.

Wehavereachedthisconclusionbyanexaminationinwhicheverystephasbeenprovedandsecured.Inthechainofreasoningnolinkiswantingandnolinkisweak.Deductionandinductionhavebroughtustothesametruth—thattheunequalownershipoflandnecessitatestheunequaldistributionofwealth.Andasinthenatureofthingsunequalownership

oflandisinseparablefromtherecognitionofindividualpropertyinland,itnecessarilyfollowsthattheonlyremedyfortheunjustdistributionofwealthisinmakinglandcommonproperty.

Butthisisatruthwhich,inthepresentstateofsociety,willarousethemostbitterantagonism,andmustfightitsway,inchbyinch.Itwillbenecessary,therefore,tomeettheobjectionsofthosewho,evenwhendriventoadmitthistruth,willdeclarethatitcannotbepracticallyapplied.

Indoingthisweshallbringourpreviousreasoningtoanewandcrucialtest.Justaswetryadditionbysubtractionandmultiplicationbydivision,somaywe,bytestingthesufficiencyoftheremedy,provethecorrectnessofourconclusionsastothecauseoftheevil.

Thelawsoftheuniverseareharmonious.Andiftheremedytowhichwehavebeenledisthetrueone,itmustbeconsistentwithjustice;itmustbepracticableofapplication;itmustaccordwiththetendenciesofsocialdevelopmentandmustharmonizewithotherreforms.

AllthisIproposetoshow.Iproposetomeetallpracticalobjectionsthatcanberaised,andtoshowthatthissimplemeasureisnotonlyeasyofapplication;butthatitisasufficientremedyforalltheevilswhich,asmodernprogressgoeson,arisefromthegreaterandgreaterinequalityinthedistributionofwealth—thatitwillsubstituteequalityforinequality,plentyforwant,justiceforinjustice,socialstrengthforsocialweakness,andwillopenthewaytogranderandnobleradvancesofcivilization.

Ithusproposetoshowthatthelawsoftheuniversedonotdenythenaturalaspirationsofthehumanheart;thattheprogressofsocietymightbe,and,ifitistocontinue,mustbe,towardequality,nottowardinequality;andthattheeconomicharmoniesprovethetruthperceivedbytheStoicEmperor—

”Wearemadeforco-operation—likefeet,likehands,likeeyelids,liketherowsoftheupperandlowerteeth.“

[BacktoTableofContents]

BookVIIJusticeofTheRemedy

ChapterI.InjusticeofPrivatePropertyinLandChapterII.TheEnslavementofLaborerstheUltimateResultofPrivatePropertyinLandChapterIII.ClaimofLandOwnerstoCompensationChapterIV.PropertyinLandHistoricallyConsideredChapterV.OfPropertyinLandintheUnitedStates

Justiceisarelationofcongruitywhichreallysubsistsbetweentwothings.Thisrelationisalwaysthesame,whateverbeingconsidersit,whetheritbeGod,oranangel,orlastlyaman.

—Montesquieu.

[BacktoTableofContents]

ChapterITheInjusticeofPrivatePropertyinLand

Whenitisproposedtoabolishprivatepropertyinlandthefirstquestionthatwillariseisthatofjustice.Thoughoftenwarpedbyhabit,superstition,andselfishnessintothemostdistortedforms,thesentimentofjusticeisyetfundamentaltothehumanmind,andwhateverdisputearousesthepassionsofmen,theconflictissuretorage,notsomuchastothequestion”Isitwise?“astothequestion”Isitright?“

Thistendencyofpopulardiscussionstotakeanethicalformhasacause.Itspringsfromalawofthehumanmind;itrestsuponavagueandinstinctiverecognitionofwhatisprobablythedeepesttruthwecangrasp.Thataloneiswisewhichisjust;thataloneisenduringwhichisright.Inthenarrowscaleofindividualactionsandindividuallifethistruthmaybeoftenobscured,butinthewiderfieldofnationallifeiteverywherestandsout.

Ibowtothisarbitrament,andacceptthistest.Ifourinquiryintothecausewhichmakeslowwagesandpauperismtheaccompanimentsofmaterialprogresshasledustoacorrectconclusion,itwillbeartranslationfromtermsofpoliticaleconomyintotermsofethics,andasthesourceofsocialevilsshowawrong.Ifitwillnotdothis,itisdisproved.Ifitwilldothis,itisprovedbythefinaldecision.Ifprivatepropertyinlandbejust,thenistheremedyIproposeafalseone;if,onthecontrary,privatepropertyinlandbeunjust,thenisthisremedythetrueone.

Whatconstitutestherightfulbasisofproperty?Whatisitthatenablesamanjustlytosayofathing,”Itismine!“Fromwhatspringsthesentimentwhichacknowledgeshisexclusiverightasagainstalltheworld?Isitnot,primarily,therightofamantohimself,totheuseofhis

ownpowers,totheenjoymentofthefruitsofhisownexertions?Isitnotthisindividualright,whichspringsfromandistestifiedtobythenaturalfactsofindividualorganization—thefactthateachparticularpairofhandsobeyaparticularbrainandarerelatedtoaparticularstomach;thefactthateachmanisadefinite,coherent,independentwhole—whichalonejustifiesindividualownership?Asamanbelongstohimself,sohislaborwhenputinconcreteformbelongstohim.

Andforthisreason,thatwhichamanmakesorproducesishisown,asagainstalltheworld—toenjoyortodestroy,touse,toexchange,ortogive.Nooneelsecanrightfullyclaimit,andhisexclusiverighttoitinvolvesnowrongtoanyoneelse.Thusthereistoeverythingproducedbyhumanexertionaclearandindisputabletitletoexclusivepossessionandenjoyment,whichisperfectlyconsistentwithjustice,asitdescendsfromtheoriginalproducer,inwhomitvestedbynaturallaw.ThepenwithwhichIamwritingisjustlymine.Nootherhumanbeingcanrightfullylayclaimtoit,forinmeisthetitleoftheproducerswhomadeit.Ithasbecomemine,becausetransferredtomebythestationer,towhomitwastransferredbytheimporter,whoobtainedtheexclusiverighttoitbytransferfromthemanufacturer,inwhom,bythesameprocessofpurchase,vestedtherightsofthosewhodugthematerialfromthegroundandshapeditintoapen.Thus,myexclusiverightofownershipinthepenspringsfromthenaturalrightoftheindividualtotheuseofhisownfaculties.

Now,thisisnotonlytheoriginalsourcefromwhichallideasofexclusiveownershiparise—asisevidentfromthenaturaltendencyofthemindtoreverttoitwhentheideaofexclusiveownershipisquestioned,andthemannerinwhichsocialrelationsdevelop—butitisnecessarilytheonlysource.Therecanbetotheownershipofanythingnorightfultitlewhichisnotderivedfromthetitleoftheproduceranddoesnotrestuponthenaturalrightofthemantohimself.Therecanbenootherrightfultitle,because(1st)thereisnoothernaturalrightfromwhichanyothertitlecanbederived,and(2d)becausetherecognitionofanyothertitleis

inconsistentwithanddestructiveofthis.

For(1st)whatotherrightexistsfromwhichtherighttotheexclusivepossessionofanythingcanbederived,savetherightofamantohimself?Withwhatotherpowerismanbynatureclothed,savethepowerofexertinghisownfaculties?Howcanheinanyotherwayactuponoraffectmaterialthingsorothermen?Paralyzethemotornerves,andyourmanhasnomoreexternalinfluenceorpowerthanalogorstone.Fromwhatelse,then,cantherightofpossessingandcontrollingthingsbederived?Ifitspringnotfrommanhimself,fromwhatcanitspring?Natureacknowledgesnoownershiporcontrolinmansaveastheresultofexertion.Innootherwaycanhertreasuresbedrawnforth,herpowersdirected,orherforcesutilizedorcontrolled.Shemakesnodiscriminationsamongmen,butistoallabsolutelyimpartial.Sheknowsnodistinctionbetweenmasterandslave,kingandsubject,saintandsinner.Allmentoherstanduponanequalfootingandhaveequalrights.Sherecognizesnoclaimbutthatoflabor,andrecognizesthatwithoutrespecttotheclaimant.Ifapiratespreadhissails,thewindwillfillthemaswellasitwillfillthoseofapeacefulmerchantmanormissionarybark;ifakingandacommonmanbethrownoverboard,neithercankeephisheadabovewaterexceptbyswimming;birdswillnotcometobeshotbytheproprietorofthesoilanyquickerthantheywillcometobeshotbythepoacher;fishwillbiteorwillnotbiteatahookinutterdisregardastowhetheritisofferedthembyagoodlittleboywhogoestoSunday-school,orabadlittleboywhoplaystruant;grainwillgrowonlyasthegroundispreparedandtheseedissown;itisonlyatthecalloflaborthatorecanberaisedfromthemine;thesunshinesandtherainfalls,alikeuponjustandunjust.ThelawsofnaturearethedecreesoftheCreator.Thereiswritteninthemnorecognitionofanyrightsavethatoflabor;andinthemiswrittenbroadlyandclearlytheequalrightofallmentotheuseandenjoymentofnature;toapplytoherbytheirexertions,andtoreceiveandpossessherreward.Hence,asnaturegivesonlytolabor,theexertionoflaborinproductionistheonlytitletoexclusivepossession.

(2d)Thisrightofownershipthatspringsfromlaborexcludesthepossibilityofanyotherrightofownership.Ifamanberightfullyentitledtotheproduceofhislabor,thennoonecanberightfullyentitledtotheownershipofanythingwhichisnottheproduceofhislabor,orthelaborofsomeoneelsefromwhomtherighthaspassedtohim.Ifproductiongivetotheproducertherighttoexclusivepossessionandenjoyment,therecanrightfullybenoexclusivepossessionandenjoymentofanythingnottheproductionoflabor,andtherecognitionofprivatepropertyinlandisawrong.Fortherighttotheproduceoflaborcannotbeenjoyedwithouttherighttothefreeuseoftheopportunitiesofferedbynature,andtoadmittherightofpropertyintheseistodenytherightofpropertyintheproduceoflabor.Whennon-producerscanclaimasrentaportionofthewealthcreatedbyproducers,therightoftheproducerstothefruitsoftheirlaboristothatextentdenied.

Thereisnoescapefromthisposition.Toaffirmthatamancanrightfullyclaimexclusiveownershipinhisownlaborwhenembodiedinmaterialthings,istodenythatanyonecanrightfullyclaimexclusiveownershipinland.Toaffirmtherightfulnessofpropertyinland,istoaffirmaclaimwhichhasnowarrantinnature,asagainstaclaimfoundedintheorganizationofmanandthelawsofthematerialuniverse.

Whatmostpreventstherealizationoftheinjusticeofprivatepropertyinlandisthehabitofincludingallthethingsthataremadethesubjectofownershipinonecategory,asproperty,or,ifanydistinctionismade,drawingtheline,accordingtotheunphilosophicaldistinctionofthelawyers,betweenpersonalpropertyandrealestate,orthingsmovableandthingsimmovable.Therealandnaturaldistinctionisbetweenthingswhicharetheproduceoflaborandthingswhicharethegratuitousofferingsofnature;or,toadoptthetermsofpoliticaleconomy,betweenwealthandland.

Thesetwoclassesofthingsareinessenceandrelationswidelydifferent,andtoclassthemtogetheraspropertyistoconfuseallthoughtwhenwe

cometoconsiderthejusticeortheinjustice,therightorthewrongofproperty.

Ahouseandthelotonwhichitstandsarealikeproperty,asbeingthesubjectofownership,andarealikeclassedbythelawyersasrealestate.Yetinnatureandrelationstheydifferwidely.Theoneisproducedbyhumanlabor,andbelongstotheclassinpoliticaleconomystyledwealth.Theotherisapartofnature,andbelongstotheclassinpoliticaleconomystyledland.

Theessentialcharacteroftheoneclassofthingsisthattheyembodylabor,arebroughtintobeingbyhumanexertion,theirexistenceornon-existence,theirincreaseordiminution,dependingonman.Theessentialcharacteroftheotherclassofthingsisthattheydonotembodylabor,andexistirrespectiveofhumanexertionandirrespectiveofman;theyarethefieldorenvironmentinwhichmanfindshimself;thestorehousefromwhichhisneedsmustbesupplied,therawmaterialuponwhichandtheforceswithwhichalonehislaborcanact.

Themomentthisdistinctionisrealized,thatmomentisitseenthatthesanctionwhichnaturaljusticegivestoonespeciesofpropertyisdeniedtotheother;thattherightfulnesswhichattachestoindividualpropertyintheproduceoflaborimpliesthewrongfulnessofindividualpropertyinland;that,whereastherecognitionoftheoneplacesallmenuponequalterms,securingtoeachtheduerewardofhislabor,therecognitionoftheotheristhedenialoftheequalrightsofmen,permittingthosewhodonotlabortotakethenaturalrewardofthosewhodo.

Whatevermaybesaidfortheinstitutionofprivatepropertyinland,itisthereforeplainthatitcannotbedefendedonthescoreofjustice.

Theequalrightofallmentotheuseoflandisasclearastheirequalrighttobreathetheair—itisarightproclaimedbythefactoftheirexistence.Forwecannotsupposethatsomemenhavearighttobeinthisworldand

othersnoright.

IfweareallherebytheequalpermissionoftheCreator,weareallherewithanequaltitletotheenjoymentofhisbounty—withanequalrighttotheuseofallthatnaturesoimpartiallyoffers.Thisisarightwhichisnaturalandinalienable;itisarightwhichvestsineveryhumanbeingasheenterstheworld,andwhichduringhiscontinuanceintheworldcanbelimitedonlybytheequalrightsofothers.Thereisinnaturenosuchthingasafeesimpleinland.Thereisonearthnopowerwhichcanrightfullymakeagrantofexclusiveownershipinland.Ifallexistingmenweretounitetograntawaytheirequalrights,theycouldnotgrantawaytherightofthosewhofollowthem.Forwhatarewebuttenantsforaday?Havewemadetheearth,thatweshoulddeterminetherightsofthosewhoafterusshalltenantitintheirturn?TheAlmighty,whocreatedtheearthformanandmanfortheearth,hasentailedituponallthegenerationsofthechildrenofmenbyadecreewrittenupontheconstitutionofallthings—adecreewhichnohumanactioncanbarandnoprescriptiondetermine.Lettheparchmentsbeeversomany,orpossessioneversolong,naturaljusticecanrecognizenorightinonemantothepossessionandenjoymentoflandthatisnotequallytherightofallhisfellows.Thoughhistitleshavebeenacquiescedinbygenerationaftergeneration,tothelandedestatesoftheDukeofWestminsterthepoorestchildthatisborninLondonto-dayhasasmuchrightashashiseldestson.ThoughthesovereignpeopleofthestateofNewYorkconsenttothelandedpossessionsoftheAstors,thepuniestinfantthatcomeswailingintotheworldinthesqualidestroomofthemostmiserabletenementhouse,becomesatthatmomentseizedofanequalrightwiththemillionaires.Anditisrobbediftherightisdenied.

Ourpreviousconclusions,irresistibleinthemselves,thusstandapprovedbythehighestandfinaltest.Translatedfromtermsofpoliticaleconomyintotermsofethicstheyshowawrongasthesourceoftheevilswhichincreaseasmaterialprogressgoeson.

Themassesofmen,whointhemidstofabundancesufferwant;who,clothedwithpoliticalfreedom,arecondemnedtothewagesofslavery;towhosetolllabor-savinginventionsbringnorelief,butratherseemtorobthemofaprivilege,instinctivelyfeelthat”thereissomethingwrong.“Andtheyareright.

Thewide-spreadingsocialevilswhicheverywhereoppressmenamidanadvancingcivilizationspringfromagreatprimarywrong—theappropriation,astheexclusivepropertyofsomemen,ofthelandonwhichandfromwhichallmustlive.Fromthisfundamentalinjusticeflowalltheinjusticeswhichdistortandendangermoderndevelopment,whichcondemntheproducerofwealthtopovertyandpamperthenon-producerinluxury,whichrearthetenementhousewiththepalace,plantthebrothelbehindthechurch,andcompelustobuildprisonsasweopennewschools.

Thereisnothingstrangeorinexplicableinthephenomenathatarenowperplexingtheworld.Itisnotthatmaterialprogressisnotinitselfagood;itisnotthatnaturehascalledintobeingchildrenforwhomshehasfailedtoprovide;itisnotthattheCreatorhasleftonnaturallawsataintofinjusticeatwhicheventhehumanmindrevolts,thatmaterialprogressbringssuchbitterfruits.Thatamidourhighestcivilizationmenfaintanddiewithwantisnotduetotheniggardlinessofnature,buttotheinjusticeofman.Viceandmisery,povertyandpauperism,arenotthelegitimateresultsofincreaseofpopulationandindustrialdevelopment;theyonlyfollowincreaseofpopulationandindustrialdevelopmentbecauselandistreatedasprivateproperty—theyarethedirectandnecessaryresultsoftheviolationofthesupremelawofjustice,involvedingivingtosomementheexclusivepossessionofthatwhichnatureprovidesforallmen.

Therecognitionofindividualproprietorshipoflandisthedenialofthenaturalrightsofotherindividuals—itisawrongwhichmustshowitselfintheinequitabledivisionofwealth.Foraslaborcannotproducewithouttheuseofland,thedenialoftheequalrighttotheuseoflandis

necessarilythedenialoftherightoflabortoitsownproduce.Ifonemancancommandthelanduponwhichothersmustlabor,hecanappropriatetheproduceoftheirlaborasthepriceofhispermissiontolabor.Thefundamentallawofnature,thatherenjoymentbymanshallbeconsequentuponhisexertion,isthusviolated.Theonereceiveswithoutproducing;theothersproducewithoutreceiving.Theoneisunjustlyenriched;theothersarerobbed.Tothisfundamentalwrongwehavetracedtheunjustdistributionofwealthwhichisseparatingmodernsocietyintotheveryrichandtheverypoor.Itisthecontinuousincreaseofrent—thepricethatlaboriscompelledtopayfortheuseofland,whichstripsthemanyofthewealththeyjustlyearn,topileitupinthehandsofthefew,whodonothingtoearnit.

Whyshouldtheywhosufferfromthisinjusticehesitateforonemomenttosweepitaway?Whoarethelandholdersthattheyshouldthusbepermittedtoreapwheretheyhavenotsown?

ConsiderforamomenttheutterabsurdityofthetitlesbywhichwepermittobegravelypassedfromJohnDoetoRichardRoetherightexclusivelytopossesstheearth,givingabsolutedominionasagainstallothers.InCaliforniaourlandtitlesgobacktotheSupremeGovernmentofMexico,whotookfromtheSpanishKing,whotookfromthePope,whenhebyastrokeofthependividedlandsyettobediscoveredbetweentheSpanishorPortuguese—orifyoupleasetheyrestuponconquest.IntheeasternstatestheygobacktotreatieswithIndiansandgrantsfromEnglishkings;inLouisianatothegovernmentofFrance;inFloridatothegovernmentofSpain;whileinEnglandtheygobacktotheNormanconquerors.Everywhere,nottoarightwhichobliges,buttoaforcewhichcompels.Andwhenatitlerestsbutonforce,nocomplaintcanbemadewhenforceannulsit.Wheneverthepeople,havingthepower,choosetoannulthosetitles,noobjectioncanbemadeinthenameofjustice.Therehaveexistedmenwhohadthepowertoholdortogiveexclusivepossessionofportionsoftheearth’ssurface,butwhenandwheredidthereexistthehumanbeingwhohadtheright?

Therighttoexclusiveownershipofanythingofhumanproductionisclear.Nomatterhowmanythehandsthroughwhichithaspassed,therewas,atthebeginningoftheline,humanlabor—someonewho,havingprocuredorproduceditbyhisexertions,hadtoitacleartitleasagainstalltherestofmankind,andwhichcouldjustlypassfromonetoanotherbysaleorgift.Butattheendofwhatstringofconveyancesorgrantscanbeshownorsupposedaliketitletoanypartofthematerialuniverse?Toimprovements,suchanoriginaltitlecanbeshown;butitisatitleonlytotheimprovements,andnottothelanditself.IfIclearaforest,drainaswamp,orfillamorass,allIcanjustlyclaimisthevaluegivenbytheseexertions.Theygivemenorighttothelanditself,noclaimotherthantomyequalsharewitheveryothermemberofthecommunityinthevaluewhichisaddedtoitbythegrowthofthecommunity.

Butitwillbesaid:Thereareimprovementswhichintimebecomeindistinguishablefromthelanditself!Verywell;thenthetitletotheimprovementsbecomesblendedwiththetitletotheland;theindividualrightislostinthecommonright.Itisthegreaterthatswallowsuptheless,notthelessthatswallowsupthegreater.Naturedoesnotproceedfromman,butmanfromnature,anditisintothebosomofnaturethatheandallhisworksmustreturnagain.

Yet,itwillbesaid:Aseverymanhasarighttotheuseandenjoymentofnature,themanwhoisusinglandmustbepermittedtheexclusiverighttoitsuseinorderthathemaygetthefullbenefitofhislabor.Butthereisnodifficultyindeterminingwheretheindividualrightendsandthecommonrightbegins.Adelicateandexacttestissuppliedbyvalue,andwithitsaidthereisnodifficulty,nomatterhowdensepopulationmaybecome,indeterminingandsecuringtheexactrightsofeach,theequalrightsofall.Thevalueofland,aswehaveseen,isthepriceofmonopoly.Itisnottheabsolute,buttherelative,capabilityoflandthatdeterminesitsvalue.Nomatterwhatmaybeitsintrinsicqualitieslandthatisnobetterthanotherlandwhichmaybehadfortheusingcanhavenovalue.Andthevalueoflandalwaysmeasuresthedifferencebetweenitandthe

bestlandthatmaybehadfortheusing.Thus,thevalueoflandexpressesinexactandtangibleformtherightofthecommunityinlandheldbyanindividual;andrentexpressestheexactamountwhichtheindividualshouldpaytothecommunitytosatisfytheequalrightsofallothermembersofthecommunity.Thus,ifweconcedetopriorityofpossessiontheundisturbeduseofland,confiscatingrentforthebenefitofthecommunity,wereconcilethefixityoftenurewhichisnecessaryforimprovementwithafullandcompleterecognitionoftheequalrightsofalltotheuseofland.

Asforthedeductionofacompleteandexclusiveindividualrighttolandfrompriorityofoccupation,thatis,ifpossible,themostabsurdgroundonwhichlandownershipcanbedefended.Priorityofoccupationgiveexclusiveandperpetualtitletothesurfaceofaglobeonwhich,intheorderofnature,countlessgenerationssucceedeachother!Hadthemenofthelastgenerationanybetterrighttotheuseofthisworldthanweofthis?orthemenofahundredyearsago?orofathousandyearsago?Hadthemound-builders,orthecave-dwellers,thecontemporariesofthemastodonandthethree-toedhorse,orthegenerationsstillfurtherback,who,indimæonsthatwecanthinkofonlyasgeologicperiods,followedeachotherontheearthwenowtenantforourlittleday?

Hasthefirstcomeratabanquettherighttoturnbackallthechairsandclaimthatnoneoftheotherguestsshallpartakeofthefoodprovided,exceptastheymaketermswithhim?Doesthefirstmanwhopresentsaticketatthedoorofatheater,andpassesin,acquirebyhisprioritytherighttoshutthedoorsandhavetheperformancegoonforhimalone?Doesthefirstpassengerwhoentersarailroadcarobtaintherighttoscatterhisbaggageoveralltheseatsandcompelthepassengerswhocomeinafterhimtostandup?

Thecasesareperfectlyanalogous.Wearriveandwedepart,guestsatabanquetcontinuallyspread,spectatorsandparticipantsinanentertainmentwherethereisroomforallwhocome;passengersfrom

stationtostation,onanorbthatwhirlsthroughspace—ourrightstotakeandpossesscannotbeexclusive;theymustbeboundedeverywherebytheequalrightsofothers.Justasthepassengerinarailroadcarmayspreadhimselfandhisbaggageoverasmanyseatsasbepleases,untilotherpassengerscomein,somayasettlertakeanduseasmuchlandashechooses,untilitisneededbyothers—afactwhichisshownbythelandacquiringavalue—whenhisrightmustbecurtailedbytheequalrightsoftheothers,andnopriorityofappropriationcangivearightwhichwillbartheseequalrightsofothers.Ifthiswerenotthecase,thenbypriorityofappropriationonemancouldacquireandcouldtransmittowhomhepleased,notmerelytheexclusiverightto160acres,orto640acres,buttoawholetownship,awholestate,awholecontinent.

Andtothismanifestabsurditydoestherecognitionofindividualrighttolandcomewhencarriedtoitsultimate—thatanyonehumanbeing,couldheconcentrateinhimselftheindividualrightstothelandofanycountry,couldexpeltherefromalltherestofitsinhabitants;andcouldhethusconcentratetheindividualrightstothewholesurfaceoftheglobe,healoneofalltheteemingpopulationoftheearthwouldhavetherighttolive.

Andwhatuponthissuppositionwouldoccuris,uponasmallerscale,realizedinactualfact.TheterritoriallordsofGreatBritain,towhomgrantsoflandhavegiventhe”whiteparasolsandelephantsmadwithpride,“haveoverandoveragainexpelledfromlargedistrictsthenativepopulation,whoseancestorshadlivedonthelandfromimmemorialtimes—driventhemofftoemigrate,tobecomepaupers,ortostarve.AndonuncultivatedtractsoflandinthenewstateofCaliforniamaybeseentheblackenedchimneysofhomesfromwhichsettlershavebeendrivenbyforceoflawswhichignorenaturalright,andgreatstretchesoflandwhichmightbepopulousaredesolate,becausetherecognitionofexclusiveownershiphasputitinthepowerofonehumancreaturetoforbidhisfellowsfromusingit.ThecomparativehandfulofproprietorswhoownthesurfaceoftheBritishIslandswouldbedoingonlywhat

Englishlawgivesthemfullpowertodo,andwhatmanyofthemhavedoneonasmallerscalealready,weretheytoexcludethemillionsofBritishpeoplefromtheirnativeislands.Andsuchanexclusion,bywhichafewhundredthousandshouldatwillbanishthirtymillionpeoplefromtheirnativecountry,whileitwouldbemorestriking,wouldnotbeawhitmorerepugnanttonaturalrightthanthespectaclenowpresented,ofthevastbodyoftheBritishpeoplebeingcompelledtopaysuchenormoussumstoafewoftheirnumberfortheprivilegeofbeingpermittedtoliveuponandusethelandwhichtheysofondlycalltheirown;whichisendearedtothembymemoriessotenderandsoglorious,andforwhichtheyareheldindutybound,ifneedbe,tospilltheirbloodandlaydowntheirlives.

IreferonlytotheBritishIslands,because,landownershipbeingmoreconcentratedthere,theyaffordamorestrikingillustrationofwhatprivatepropertyinlandnecessarilyinvolves.”Towhomsoeverthesoilatanytimebelongs,tohimbelongthefruitsofit,“isatruththatbecomesmoreandmoreapparentaspopulationbecomesdenserandinventionandimprovementaddtoproductivepower;butitiseverywhereatruth—asmuchinournewStatesasintheBritishIslandsorbythebanksoftheIndus.

Insayingthatprivatepropertyinlandcan,intheultimateanalysis,bejustifiedonlyonthetheorythatsomemenhaveabetterrighttoexistencethanothers,Iamstatingonlywhattheadvocatesoftheexistingsystemhavethemselvesperceived.WhatgavetoMalthushispopularityamongtherulingclasses—whatcausedhisillogicalbooktobereceivedasanewrevelation,inducedsovereignstosendhimdecorations,andthemeanestrichmaninEnglandtoproposetogivehimaliving,wasthefactthathefurnishedaplausiblereasonfortheassumptionthatsomehaveabetterrighttoexistencethanothers—anassumptionwhichisnecessaryforthejustificationofprivatepropertyinland,andwhichMalthusclearlystatesinthedeclarationthatthetendencyofpopulationisconstantlytobringintotheworldhumanbeingsforwhomnaturerefusestoprovide,andwho

consequently”havenottheslightestrighttoanyshareintheexistingstoreofthenecessariesoflife“;whomshetellsasinterloperstobegone,”anddoesnothesitatetoextortbyforceobediencetohermandates,“employingforthatpurpose”hungerandpestilence,warandcrime,mortalityandneglectofinfantinelife,prostitutionandsyphilis.“Andto-daythisMalthusiandoctrineistheultimatedefenseuponwhichthosewhojustifyprivatepropertyinlandfallback.Innootherwaycanitbelogicallydefended.

Thisnaturalandinalienablerighttotheequaluseandenjoymentoflandissoapparentthatithasbeenrecognizedbymenwhereverforceorhabithasnotbluntedfirstperceptions.Togivebutoneinstance:ThewhitesettlersofNewZealandfoundthemselvesunabletogetfromtheMaoriswhatthelatterconsideredacompletetitletoland,because,althoughawholetribemighthaveconsentedtoasale,theywouldstillclaimwitheverynewchildbornamongthemanadditionalpaymentonthegroundthattheyhadpartedwithonlytheirownrights,andcouldnotsellthoseoftheunborn.Thegovernmentwasobligedtostepinandsettlethematterbybuyinglandforatribalannuity,inwhicheverychildthatisbornacquiresashare.

[BacktoTableofContents]

ChapterIITheEnslavementofLaborerstheUltimateResultofPrivatePropertyinLand

Ifchattelslaverybeunjust,thenisprivatepropertyinlandunjust.

Forletthecircumstancesbewhattheymay—theownershipoflandwillalwaysgivetheownershipofmen,toadegreemeasuredbythenecessity(realorartificial)fortheuseofland.Thisisbutastatementindifferentformofthelawofrent.

Andwhenthatnecessityisabsolute—whenstarvationisthealternativetotheuseofland,thendoestheownershipofmeninvolvedintheownershipoflandbecomeabsolute.

Placeonehundredmenonanislandfromwhichthereisnoescape,andwhetheryoumakeoneofthesementheabsoluteowneroftheotherninety-nine,ortheabsoluteownerofthesoiloftheisland,willmakenodifferenceeithertohimortothem.

Intheonecase,astheother,theonewillbetheabsolutemasteroftheninety-nine—hispowerextendingeventolifeanddeath,forsimplytorefusethempermissiontoliveupontheislandwouldbetoforcethemintothesea.

Uponalargerscale,andthroughmorecomplexrelations,thesamecausemustoperateinthesamewayandtothesameend—theultimateresult,theenslavementoflaborers,becomingapparentjustasthepressureincreaseswhichcompelsthemtoliveonandfromlandwhichistreatedastheexclusivepropertyofothers.Takeacountryinwhichthesoilisdividedamonganumberofproprietors,insteadofbeinginthehandsofone,andinwhich,asinmodernproduction,thecapitalisthasbeen

specializedfromthelaborer,andmanufacturesandexchange,inalltheirmanybranches,havebeenseparatedfromagriculture.Thoughlessdirectandobvious,therelationsbetweentheownersofthesoilandthelaborerswill,withincreaseofpopulationandtheimprovementofthearts,tendtothesameabsolutemasteryontheonehandandthesameabjecthelplessnessontheother,asinthecaseoftheislandwehavesupposed.Rentwilladvance,whilewageswillfall.Oftheaggregateproduce,thelandownerwillgetaconstantlyincreasing,thelaboreraconstantlydiminishingshare.Justasremovaltocheaperlandbecomesdifficultorimpossible,laborers,nomatterwhattheyproduce,willbereducedtoabareliving,andthefreecompetitionamongthem,wherelandismonopolized,willforcethemtoaconditionwhich,thoughtheymaybemockedwiththetitlesandinsigniaoffreedom,willbevirtuallythatofslavery.

Thereisnothingstrangeinthefactthat,inspiteoftheenormousincreaseinproductivepowerwhichthiscenturyhaswitnessed,andwhichisstillgoingon,thewagesoflaborinthelowerandwiderstrataofindustryshouldeverywheretendtothewagesofslavery—justenoughtokeepthelaborerinworkingcondition.Fortheownershipofthelandonwhichandfromwhichamanmustliveisvirtuallytheownershipofthemanhimself,andinacknowledgingtherightofsomeindividualstotheexclusiveuseandenjoymentoftheearth,wecondemnotherindividualstoslaveryasfullyandascompletelyasthoughwehadformallymadethemchattels.

Inasimplerformofsociety,whereproductionchieflyconsistsinthedirectapplicationoflabortothesoil,theslaverythatisthenecessaryresultofaccordingtosometheexclusiverighttothesoilfromwhichallmustlive,isplainlyseeninhelotism,invilleinage,inserfdom.

Chattelslaveryoriginatedinthecaptureofprisonersinwar,and,thoughithasexistedtosomeextentineverypartoftheglobe,itsareahasbeensmall,itseffectstrivial,ascomparedwiththeformsofslaverywhich

haveoriginatedintheappropriationofland.Nopeopleasamasshaveeverbeenreducedtochattelslaverytomenoftheirownrace,noryetonanylargescalehasanypeopleeverbeenreducedtoslaveryofthiskindbyconquest.Thegeneralsubjectionofthemanytothefew,whichwemeetwithwhereversocietyhasreachedacertaindevelopment,hasresultedfromtheappropriationoflandasindividualproperty.Itistheownershipofthesoilthateverywheregivestheownershipofthementhatliveuponit.ItisslaveryofthiskindtowhichtheenduringpyramidsandthecolossalmonumentsofEgyptyetbearwitness,andoftheinstitutionofwhichwehave,perhaps,avaguetraditioninthebiblicalstoryofthefamineduringwhichthePharaohpurchasedupthelandsofthepeople.Itwasslaveryofthiskindtowhich,inthetwilightofhistory,theconquerorsofGreecereducedtheoriginalinhabitantsofthatpeninsula,transformingthemintohelotsbymakingthempayrentfortheirlands.Itwasthegrowthofthelatifundia,orgreatlandedestates,whichtransmutedthepopulationofancientItaly,fromaraceofhardyhusbandman,whoserobustvirtuesconqueredtheworld,intoaraceofcringingbondsmen;itwastheappropriationofthelandastheabsolutepropertyoftheirchieftainswhichgraduallyturnedthedescendantsoffreeandequalGallic,TeutonicandHunnishwarriorsintocoloniiandvillains,andwhichchangedtheindependentburghersofSclavonicvillagecommunitiesintotheboorsofRussiaandtheserfsofPoland;whichinstitutedthefeudalismofChinaandJapan,aswellasthatofEurope,andwhichmadetheHighChiefsofPolynesiatheallbutabsolutemastersoftheirfellows.HowitcametopassthattheAryanshepherdsandwarriorswho,ascomparativephilologytellsus,descendedfromthecommonbirthplaceoftheIndo-GermanicraceintothelowlandsofIndia,wereturnedintothesuppliantandcringingHindoo,theSanscritversewhichIhavebeforequotedgivesusahint.ThewhiteparasolsandtheelephantsmadwithprideoftheIndianrajaharetheflowersofgrantsofland.Andcouldwefindthekeytotherecordsofthelong-buriedcivilizationsthatlieentombedinthegiganticruinsofYucatanandGuatemala,tellingatonceoftheprideofarulingclassandtheunrequitedtoiltowhichthemasseswerecondemned,weshouldread,in

allhumanprobability,ofaslaveryimposeduponthegreatbodyofthepeoplethroughtheappropriationofthelandasthepropertyofafew—ofanotherillustrationoftheuniversaltruththattheywhopossessthelandaremastersofthemenwhodwelluponit.

Thenecessaryrelationbetweenlaborandland,theabsolutepowerwhichtheownershipoflandgivesovermenwhocannotlivebutbyusingit,explainswhatisotherwiseinexplicable—thegrowthandpersistenceofinstitutions,manners,andideassoutterlyrepugnanttothenaturalsenseoflibertyandequality.

Whentheideaofindividualownership,whichsojustlyandnaturallyattachestothingsofhumanproduction,isextendedtoland,alltherestisamerematterofdevelopment.Thestrongestandmostcunningeasilyacquireasuperiorshareinthisspeciesofproperty,whichistobehad,notbyproduction,butbyappropriation,andinbecominglordsofthelandtheybecomenecessarilylordsoftheirfellowmen.Theownershipoflandisthebasisofaristocracy.Itwasnotnobilitythatgaveland,butthepossessionoflandthatgavenobility.AlltheenormousprivilegesofthenobilityofmedievalEuropeflowedfromtheirpositionastheownersofthesoil.Thesimpleprincipleoftheownershipofthesoilproduced,ontheoneside,thelord,ontheother,thevassal—theonehavingallrights,theothernone.Therightofthelordtothesoilacknowledgedandmaintained,thosewholiveduponitcoulddosoonlyuponhisterms.Themannersandconditionsofthetimesmadethosetermsincludeservicesandservitudes,aswellasrentsinproduceormoney,buttheessentialthingthatcompelledthemwastheownershipofland.Thispowerexistswherevertheownershipoflandexists,andcanbebroughtoutwhereverthecompetitionfortheuseoflandisgreatenoughtoenablethelandlordtomakehisownterms.TheEnglishlandownerofto-dayhas,inthelawwhichrecognizeshisexclusiverighttotheland,essentiallyallthepowerwhichhispredecessorthefeudalbaronhad.Hemightcommandrentinservicesorservitudes.Hemightcompelhistenantstodressthemselvesinaparticularway,toprofessaparticularreligion,tosendtheirchildren

toaparticularschool,tosubmittheirdifferencestohisdecision,tofallupontheirkneeswhenhespoketothem,tofollowhimarounddressedinhislivery,ortosacrificetohimfemalehonoriftheywouldpreferthesethingstobeingdrivenoffhisland.Hecoulddemand,inshort,anytermsonwhichmenwouldstillconsenttoliveonhisland,andthelawcouldnotpreventhimsolongasitdidnotqualifyhisownership,forcompliancewiththemwouldassumetheformofafreecontractorvoluntaryact.AndEnglishlandlordsdoexercisesuchofthesepowersasinthemannersofthetimestheycareto.Havingshakenofftheobligationofprovidingforthedefenseofthecountry,theynolongerneedthemilitaryserviceoftheirtenants,andthepossessionofwealthandpowerbeingnowshowninotherwaysthanbylongtrainsofattendants,theynolongercareforpersonalservice.Buttheyhabituallycontrolthevotesoftheirtenants,anddictatetotheminmanylittleways.That”rightreverendfatherinGod,“BishopLordPlunkett,evictedanumberofhispoorIrishtenantsbecausetheywouldnotsendtheirchildrentoProtestantSunday-schools;andtothatEarlofLeitrimforwhomNemesistarriedsolongbeforeshespedthebulletofanassassin,evendarkercrimesareimputed;while,atthecoldpromptingsofgreed,cottageaftercottagehasbeenpulleddownandfamilyafterfamilyforcedintotheroads.Theprinciplethatpermitsthisisthesameprinciplethatinrudertimesandasimplersocialstateenthralledthegreatmassesofthecommonpeopleandplacedsuchawidegulfbetweennobleandpeasant.Wherethepeasantwasmadeaserf,itwassimplybyforbiddinghimtoleavetheestateonwhichhewasborn,thusartificiallyproducingtheconditionwesupposedontheisland.Insparselysettledcountriesthisisnecessarytoproduceabsoluteslavery,butwherelandisfullyoccupied,competitionmayproducesubstantiallythesameconditions.Betweentheconditionoftherack-rentedIrishpeasantandtheRussianserf,theadvantagewasinmanythingsonthesideoftheserf.Theserfdidnotstarve.

Now,asIthinkIhaveconclusivelyproved,itisthesamecausewhichhasineveryagedegradedandenslavedthelaboringmassesthatisworkingin

thecivilizedworldto-day.Personalliberty—thatistosay,thelibertytomoveabout—iseverywhereconceded,whileofpoliticalandlegalinequalitythereareintheUnitedStatesnovestiges,andinthemostbackwardcivilizedcountriesbutfew.Butthegreatcauseofinequalityremains,andismanifestingitselfintheunequaldistributionofwealth.Theessenceofslaveryisthatittakesfromthelaborerallheproducessaveenoughtosupportananimalexistence,andtothisminimumthewagesoffreelabor,underexistingconditions,unmistakablytend.Whateverbetheincreaseofproductivepower,rentsteadilytendstoswallowupthegain,andmorethanthegain.

Thustheconditionofthemassesineverycivilizedcountryis,oristendingtobecome,thatofvirtualslaveryundertheformsoffreedom.Anditisprobablethatofallkindsofslaverythisisthemostcruelandrelentless.Forthelaborerisrobbedoftheproduceofhislaborandcompelledtotoilforameresubsistence;buthistaskmasters,insteadofhumanbeings,assumetheformsofimperiousnecessities.Thosetowhomhislaborisrenderedandfromwhomhiswagesarereceivedareoftendrivenintheirturn—contactbetweenthelaborersandtheultimatebeneficiariesoftheirlaborissundered,andindividualityislost.Thedirectresponsibilityofmastertoslave,aresponsibilitywhichexercisesasofteninginfluenceuponthegreatmajorityofmen,doesnotarise;itisnotonehumanbeingwhoseemstodriveanothertounremittingandill-requitedtoil,but”theinevitablelawsofsupplyanddemand,“forwhichnooneinparticularisresponsible.ThemaximsofCatotheCensor—maximswhichwereregardedwithabhorrenceeveninanageofcrueltyanduniversalslaveholding—thatafterasmuchworkaspossibleisobtainedfromaslaveheshouldbeturnedouttodie,becomethecommonrule;andeventheselfishinterestwhichpromptsthemastertolookafterthecomfortandwell-beingoftheslaveislost.Laborhasbecomeacommodity,andthelaboreramachine.Therearenomastersandslaves,noownersandowned,butonlybuyersandsellers.Thehigglingofthemarkettakestheplaceofeveryothersentiment.

WhentheslaveholdersoftheSouthlookedupontheconditionofthefreelaboringpoorinthemostadvancedcivilizedcountries,itisnowonderthattheyeasilypersuadedthemselvesofthedivineinstitutionofslavery.ThatthefieldhandsoftheSouthwereasaclassbetterfed,betterlodged,betterclothed;thattheyhadlessanxietyandmoreoftheamusementsandenjoymentsoflifethantheagriculturallaborersofEnglandtherecanbenodoubt;andevenintheNortherncities,visitingslaveholdersmightseeandhearofthingsimpossibleunderwhattheycalledtheirorganizationoflabor.IntheSouthernStates,duringthedaysofslavery,themasterwhowouldhavecompelledhisnegroestoworkandliveaslargeclassesoffreewhitemenandwomenarecompelledinfreecountriestoworkandlive,wouldhavebeendeemedinfamous,andifpublicopinionhadnotrestrainedhim,hisownselfishinterestinthemaintenanceofthehealthandstrengthofhischattelswould.ButinLondon,NewYork,andBoston,amongpeoplewhohavegiven,andwouldgiveagain,moneyandbloodtofreetheslave,wherenoonecouldabuseabeastinpublicwithoutarrestandpunishment,barefootedandraggedchildrenmaybeseenrunningaroundthestreetseveninthewintertime,andinsqualidgarretsandnoisomecellarswomenworkawaytheirlivesforwagesthatfailtokeeptheminproperwarmthandnourishment.IsitanywonderthattotheslaveholdersoftheSouththedemandfortheabolitionofslaveryseemedlikethecantofhypocrisy?

Andnowthatslaveryhasbeenabolished,theplantersoftheSouthfindtheyhavesustainednoloss.Theirownershipofthelanduponwhichthefreedmenmustlivegivesthempracticallyasmuchcommandoflaborasbefore,whiletheyarerelievedofresponsibility,sometimesveryexpensive.Thenegroesasyethavethealternativeofemigrating,andagreatmovementofthatkindseemsnowaboutcommencing,butaspopulationincreasesandlandbecomesdear,theplanterswillgetagreaterproportionateshareoftheearningsoftheirlaborersthantheydidunderthesystemofchattelslavery,andthelaborersalessshare—forunderthesystemofchattelslaverytheslavesalwaysgotatleastenoughtokeepthemingoodphysicalhealth,butinsuchcountriesasEngland

therearelargeclassesoflaborerswhodonotgetthat.

Theinfluenceswhich,whereverthereispersonalrelationbetweenmasterandslave,slipintomodifychattelslavery,andtopreventthemasterfromexertingtoitsfullestextenthispowerovertheslave,alsoshowedthemselvesintheruderformsofserfdomthatcharacterizedtheearlierperiodsofEuropeandevelopment,andaidedbyreligion,and,perhaps,asinchattelslavery,bythemoreenlightenedbutstillselfishinterestsofthelord,andhardeningintocustom,universallyfixedalimittowhattheownerofthelandcouldextortfromtheserforpeasant,sothatthecompetitionofmenwithoutmeansofexistencebiddingagainsteachotherforaccesstothemeansofexistence,wasnowheresufferedtogotoitsfulllengthandexertitsfullpowerofdeprivationanddegradation.ThehelotsofGreece,themetayersofItaly,theserfsofRussiaandPoland,thepeasantsoffeudalEurope,renderedtotheirlandlordsafixedproportioneitheroftheirproduceortheirlabor,andwerenotgenerallysqueezedpastthatpoint.Buttheinfluenceswhichthussteppedintomodifytheextortivepoweroflandownership,andwhichmaystillbeseenonEnglishestateswherethelandlordandhisfamilydeemittheirdutytosendmedicinesandcomfortstothesickandinfirm,andtolookafterthewellbeingoftheircottagers,justasthesouthernplanterwasaccustomedtolookafterhisnegroes,arelostinthemorerefinedandlessobviousformwhichserfdomassumesinthemorecomplicatedprocessesofmodernproduction,whichseparatessowidelyandbysomanyintermediategradationstheindividualwhoselaborisappropriatedfromhimwhoappropriatesit,andmakestherelationsbetweenthemembersofthetwoclassesnotdirectandparticular,butindirectandgeneral.Inmodernsociety,competitionhasfreeplaytoforcefromthelaborertheveryutmosthecangive,andwithwhatterrificforceitisactingmaybeseenintheconditionofthelowestclassinthecentersofwealthandindustry.Thattheconditionofthislowestclassisnotyetmoregeneral,istobeattributedtothegreatextentoffertilelandwhichhashithertobeenopenonthiscontinent,andwhichhasnotmerelyaffordedanescapefortheincreasingpopulationoftheoldersectionsoftheUnion,buthas

greatlyrelievedthepressureinEurope—inonecountry,Ireland,theemigrationhavingbeensogreatasactuallytoreducethepopulation.Thisavenueofreliefcannotlastforever.Itisalreadyfastclosingup,andasitcloses,thepressuremustbecomeharderandharder.

ItisnotwithoutreasonthatthewisecrowintheRamayana,thecrowBushanda”whohaslivedineverypartoftheuniverseandknowsalleventsfromthebeginningsoftime,“declaresthat,thoughcontemptofworldlyadvantagesisnecessarytosupremefelicity,yetthekeenestpainpossibleisinflictedbyextremepoverty.Thepovertytowhichinadvancingcivilizationgreatmassesofmenarecondemned,isnotthefreedomfromdistractionandtemptationwhichsageshavesoughtandphilosophershavepraised;itisadegradingandembrutingslavery,thatcrampsthehighernature,dullsthefinerfeelings,anddrivesmenbyitspaintoactswhichthebruteswouldrefuse.Itisintothishelpless,hopelesspoverty,thatcrushesmanhoodanddestroyswomanhood,thatrobsevenchildhoodofitsinnocenceandjoy,thattheworkingclassesarebeingdrivenbyaforcewhichactsuponthemlikearesistlessandunpityingmachine.TheBostoncollarmanufacturerwhopayshisgirlstwocentsanhourmaycommiseratetheircondition,buthe,asthey,isgovernedbythelawofcompetition,andcannotpaymoreandcarryonhisbusiness,forexchangeisnotgovernedbysentiment.Andso,throughallintermediategradations,uptothosewhoreceivetheearningsoflaborwithoutreturn,intherentofland,itistheinexorablelawsofsupplyanddemand,apowerwithwhichtheindividualcannomorequarrelordisputethanwiththewindsandthetides,thatseemtopressdownthelowerclassesintotheslaveryofwant.

Butinreality,thecauseisthatwhichalwayshasandalwaysmustresultinslavery—themonopolizationbysomeofwhatnaturehasdesignedforall.

Ourboastedfreedomnecessarilyinvolvesslavery,solongaswerecognizeprivatepropertyinland.Untilthatisabolished,Declarationsof

IndependenceandActsofEmancipationareinvain.Solongasonemancanclaimtheexclusiveownershipofthelandfromwhichothermenmustlive,slaverywillexist,andasmaterialprogressgoeson,mustgrowanddeepen!

This—andinpreviouschaptersofthisbookwehavetracedtheprocess,stepbystep—iswhatisgoingoninthecivilizedworldto-day.Privateownershipoflandisthenethermillstone.Materialprogressistheuppermillstone.Betweenthem,withanincreasingpressure,theworkingclassesarebeingground.

Oneoftheanti-slaveryagitators(Col.J.A.Collins)onavisittoEnglandaddressedalargeaudienceinaScotchmanufacturingtown,andwoundupashehadbeenusedtointheUnitedStates,bygivingtherationwhichintheslavecodesofsomeofthestatesfixedtheminimumofmaintenanceforaslave.Hequicklydiscoveredthattomanyofhishearersitwasananti-climax.

[BacktoTableofContents]

ChapterIIIClaimofLandOwnerstoCompensation

Thetruthis,andfromthistruththerecanbenoescape,thatthereisandcanbenojusttitletoanexclusivepossessionofthesoil,andthatprivatepropertyinlandisabold,bare,enormouswrong,likethatofchattelslavery.

Themajorityofmenincivilizedcommunitiesdonotrecognizethis,simplybecausethemajorityofmendonotthink.Withthemwhateveris,isright,untilitswrongfulnesshasbeenfrequentlypointedout,andingeneraltheyarereadytocrucifywhoeverfirstattemptsthis.

Butitisimpossibleforanyonetostudypoliticaleconomy,evenasatpresenttaught,ortothinkatallupontheproductionanddistributionofwealth,withoutseeingthatpropertyinlanddiffersessentiallyfrompropertyinthingsofhumanproduction,andthatithasnowarrantinabstractjustice.

Thisisadmitted,eitherexpresslyortacitly,ineverystandardworkonpoliticaleconomy,butingeneralmerelybyvagueadmissionoromission.Attentionisingeneralcalledawayfromthetruth,asalectureronmoralphilosophyinaslave-holdingcommunitymightcallawayattentionfromtoocloseaconsiderationofthenaturalrightsofmen,andprivatepropertyinlandisacceptedwithoutcomment,asanexistingfact,orisassumedtobenecessarytotheproperuseoflandandtheexistenceofthecivilizedstate.

Theexaminationthroughwhichwehavepassedhasprovedconclusivelythatprivatepropertyinlandcannotbejustifiedonthegroundofutility—that,onthecontrary,itisthegreatcausetowhicharetobetracedthepoverty,misery,anddegradation,thesocialdiseaseandthepolitical

weaknesswhichareshowingthemselvessomenacinglyamidadvancingcivilization.Expediency,therefore,joinsjusticeindemandingthatweabolishit.

Whenexpediencythusjoinsjusticeindemandingthatweabolishaninstitutionthathasnobroaderbaseorstrongergroundthanameremunicipalregulation,whatreasoncantherebeforhesitation?

Theconsiderationthatseemstocausehesitation,evenonthepartofthosewhoseeclearlythatlandbyrightiscommonproperty,istheideathathavingpermittedlandtobetreatedasprivatepropertyforsolong,weshouldinabolishingitbedoingawrongtothosewhohavebeensufferedtobasetheircalculationsuponitspermanence;thathavingpermittedlandtobeheldasrightfulproperty,weshouldbytheresumptionofcommonrightsbedoinginjusticetothosewhohavepurchaseditwithwhatwasunquestionablytheirrightfulproperty.Thus,itisheldthatifweabolishprivatepropertyinland,justicerequiresthatweshouldfullycompensatethosewhonowpossessit,astheBritishGovernment,inabolishingthepurchaseandsaleofmilitarycommissions,feltitselfboundtocompensatethosewhoheldcommissionswhichtheyhadpurchasedinthebeliefthattheycouldsellthemagain,orasinabolishingslaveryintheBritishWestIndies6100,000,000waspaidtheslaveholders.

EvenHerbertSpencer,whoinhis”SocialStatics“hassoclearlydemonstratedtheinvalidityofeverytitlebywhichtheexclusivepossessionoflandisclaimed,givescountenancetothisidea(thoughitseemstomeinconsistently)bydeclaringthatjustlytoestimateandliquidatetheclaimsofthepresentlandholders”whohaveeitherbytheirownactsorbytheactsoftheirancestorsgivenfortheirestatesequivalentsofhonestlyearnedwealth,“tobe”oneofthemostintricateproblemssocietywillonedayhavetosolve.“

Itisthisideathatsuggeststheproposition,whichfindsadvocatesin

GreatBritain,thatthegovernmentshallpurchaseatitsmarketpricetheindividualproprietorshipofthelandofthecountry,anditwasthisideawhichledJohnStuartMill,althoughclearlyperceivingtheessentialinjusticeofprivatepropertyinland,toadvocate,notafullresumptionoftheland,butonlyaresumptionofaccruingadvantagesinthefuture.Hisplanwasthatafairandevenliberalestimateshouldbemadeofthemarketvalueofallthelandinthekingdom,andthatfutureadditionstothatvalue,notduetotheimprovementsoftheproprietor,shouldbetakenbythestate.

Tosaynothingofthepracticaldifficultieswhichsuchcumbrousplansinvolve,intheextensionofthefunctionsofgovernmentwhichtheywouldrequireandthecorruptiontheywouldbeget,theirinherentandessentialdefectliesintheimpossibilityofbridgingoverbyanycompromisetheradicaldifferencebetweenwrongandright.Justinproportionastheinterestsofthelandholdersareconserved,justinthatproportionmustgeneralinterestsandgeneralrightsbedisregarded,andiflandholdersaretolosenothingoftheirspecialprivileges,thepeopleatlargecangainnothing.Tobuyupindividualpropertyrightswouldmerelybetogivethelandholdersinanotherformaclaimofthesamekindandamountthattheirpossessionoflandnowgivesthem;itwouldbetoraiseforthembytaxationthesameproportionoftheearningsoflaborandcapitalthattheyarenowenabledtoappropriateinrent.Theirunjustadvantagewouldbepreservedandtheunjustdisadvantageofthenon-landholderswouldbecontinued.Tobesuretherewouldbeagaintothepeopleatlargewhentheadvanceofrentshadmadetheamountwhichthelandholderswouldtakeunderthepresentsystemgreaterthantheinterestuponthepurchasepriceofthelandatpresentrates,butthiswouldbeonlyafuturegain,andinthemeanwhiletherewouldnotonlybenorelief,buttheburdenimposeduponlaborandcapitalforthebenefitofthepresentlandholderswouldbemuchincreased.Foroneoftheelementsinthepresentmarketvalueoflandistheexpectationoffutureincreaseofvalue,andthus,tobuyupthelandsatmarketratesandpayinterestuponthepurchasemoneywouldbetosaddleproducersnotonly

withthepaymentofactualrent,butwiththepaymentinfullofspeculativerent.Ortoputitinanotherway:Thelandwouldbepurchasedatpricescalculateduponalowerthantheordinaryrateofinterest(fortheprospectiveincreaseinlandvaluesalwaysmakesthemarketpriceoflandmuchgreaterthanwouldbethepriceofanythingelseyieldingthesamepresentreturn),andinterestuponthepurchasemoneywouldbepaidattheordinaryrate.Thus,notonlyallthatthelandyieldsthemnowwouldhavetobepaidthelandowners,butaconsiderablylargeramount.Itwouldbe,virtually,thestatetakingaperpetualleasefromthepresentlandholdersataconsiderableadvanceinrentoverwhattheynowreceive.Forthepresentthestatewouldmerelybecometheagentofthelandholdersinthecollectionoftheirrents,andwouldhavetopayovertothemnotonlywhattheyreceived,butconsiderablymore.

Mr.Mill’splanfornationalizingthefuture”unearnedincreaseinthevalueofland,“byfixingthepresentmarketvalueofalllandsandappropriatingtothestatefutureincreaseinvalue,wouldnotaddtotheinjusticeofthepresentdistributionofwealth,butitwouldnotremedyit.Furtherspeculativeadvanceofrentwouldcease,andinthefuturethepeopleatlargewouldgainthedifferencebetweentheincreaseofrentandtheamountatwhichthatincreasewasestimatedinfixingthepresentvalueofland,inwhich,ofcourse,prospective,aswellaspresent,valueisanelement.Butitwouldleave,forallthefuture,oneclassinpossessionoftheenormousadvantageoverotherswhichtheynowhave.Allthatcanbesaidofthisplanis,thatitmightbebetterthannothing.

Suchinefficientandimpracticableschemesmaydototalkabout,whereanypropositionmoreefficaciouswouldnotatpresentbeentertained,andtheirdiscussionisahopefulsign,asitshowstheentranceofthethinendofthewedgeoftruth.Justiceinmen’smouthsiscringinglyhumblewhenshefirstbeginsaprotestagainstatime-honoredwrong,andweoftheEnglish-speakingnationsstillwearthecollaroftheSaxonthrall,andhavebeeneducatedtolookuponthe”vestedrights“oflandownerswithallthesuperstitiousreverencethatancientEgyptianslookeduponthe

crocodile.Butwhenthetimesareripeforthem,ideasgrow,eventhoughinsignificantintheirfirstappearance.Oneday,theThirdEstatecoveredtheirheadswhenthekingputonhishat.Alittlewhilethereafter,andtheheadofasonofSt.Louisrolledfromthescaffold.Theanti-slaverymovementintheUnitedStatescommencedwithtalkofcompensatingowners,butwhenfourmillionsofslaveswereemancipated,theownersgotnocompensation,nordidtheyclamorforany.AndbythetimethepeopleofanysuchcountryasEnglandortheUnitedStatesaresufficientlyarousedtotheinjusticeanddisadvantagesofindividualownershipoflandtoinducethemtoattemptitsnationalization,theywillbesufficientlyarousedtonationalizeitinamuchmoredirectandeasywaythanbypurchase.Theywillnottroublethemselvesaboutcompensatingtheproprietorsofland.

Norisitrightthatthereshouldbeanyconcernabouttheproprietorsofland.ThatsuchamanasJohnStuartMillshouldhaveattachedsomuchimportancetothecompensationoflandownersastohaveurgedtheconfiscationmerelyofthefutureincreaseinrent,isexplainableonlybyhisacquiescenceinthecurrentdoctrinesthatwagesaredrawnfromcapitalandthatpopulationconstantlytendstopressuponsubsistence.Theseblindedhimastothefulleffectsoftheprivateappropriationofland.Hesawthat”theclaimofthelandholderisaltogethersubordinatetothegeneralpolicyofthestate,“andthat”whenprivatepropertyinlandisnotexpedient,itisunjust,“but,entangledinthetoilsoftheMalthusiandoctrine,heattributed,asheexpresslystatesinaparagraphIhavepreviouslyquoted,thewantandsufferingthathesawaroundhimto“theniggardlinessofnature,nottotheinjusticeofman,”andthustohimthenationalizationoflandseemedcomparativelyalittlething,thatcouldaccomplishnothingtowardtheeradicationofpauperismandtheabolitionofwant—endsthatcouldbereachedonlyasmenlearnedtorepressanaturalinstinct.Greatashewasandpureashewas—warmheartandnoblemind—heyetneversawthetrueharmonyofeconomiclaws,norrealizedhowfromthisonegreatfundamentalwrongflowwantandmisery,andviceandshame.Elsehecouldneverhavewrittenthis

sentence:“ThelandofIreland,thelandofeverycountry,belongstothepeopleofthatcountry.Theindividualscalledlandownershavenorightinmoralityandjusticetoanythingbuttherent,orcompensationforitssalablevalue.”

InthenameoftheProphet—figs!Ifthelandofanycountrybelongtothepeopleofthatcountry,whatright,inmoralityandjustice,havetheindividualscalledlandownerstotherent?Ifthelandbelongtothepeople,whyinthenameofmoralityandjusticeshouldthepeoplepayitssalablevaluefortheirown?

HerbertSpencersays:”Hadwetodealwiththepartieswhooriginallyrobbedthehumanraceofitsheritage,wemightmakeshortworkofthematter.“Whynotmakeshortworkofthematteranyhow?Forthisrobberyisnotliketherobberyofahorseorasumofmoney,thatceaseswiththeact.Itisafreshandcontinuousrobbery,thatgoesoneverydayandeveryhour.Itisnotfromtheproduceofthepastthatrentisdrawn;itisfromtheproduceofthepresent.Itisatolllevieduponlaborconstantlyandcontinuously.Everyblowofthehammer,everystrokeofthepick,everythrustoftheshuttle,everythrobofthesteamengine,paysittribute.Itleviesupontheearningsofthemenwho,deepunderground,risktheirlives,andofthosewhooverwhitesurgeshangtoreelingmasts;itclaimsthejustrewardofthecapitalistandthefruitsoftheinventor’spatienteffort;ittakeslittlechildrenfromplayandfromschool,andcompelsthemtoworkbeforetheirbonesarehardortheirmusclesarefirm;itrobstheshiveringofwarmth;thehungry,offood;thesick,ofmedicine;theanxious,ofpeace.Itdebases,andembrutes,andembitters.Itcrowdsfamiliesofeightandtenintoasinglesqualidroom;itherdslikeswineagriculturalgangsofboysandgirls;itfillstheginpalaceandgroggerywiththosewhohavenocomfortintheirhomes;itmakesladswhomightbeusefulmencandidatesforprisonsandpenitentiaries;itfillsbrothelswithgirlswhomighthaveknownthepurejoyofmotherhood;itsendsgreedandallevilpassionsprowlingthroughsocietyasahardwinterdrivesthewolvestotheabodesofmen;itdarkensfaithinthe

humansoul,andacrossthereflectionofajustandmercifulCreatordrawstheveilofahard,andblind,andcruelfate!

Itisnotmerelyarobberyinthepast;itisarobberyinthepresent—arobberythatdeprivesoftheirbirthrighttheinfantsthatarenowcomingintotheworld!Whyshouldwehesitateaboutmakingshortworkofsuchasystem?BecauseIwasrobbedyesterday,andthedaybefore,andthedaybeforethat,isitanyreasonthatIshouldsuffermyselftoberobbedto-dayandto-morrow?AnyreasonthatIshouldconcludethattherobberhasacquiredavestedrighttorobme?

Ifthelandbelongtothepeople,whycontinuetopermitlandownerstotaketherent,orcompensatetheminanymannerforthelossofrent?Considerwhatrentis.Itdoesnotarisespontaneouslyfromland;itisduetonothingthatthelandownershavedone.Itrepresentsavaluecreatedbythewholecommunity.Letthelandholdershave,ifyouplease,allthatthepossessionofthelandwouldgivethemintheabsenceoftherestofthecommunity.Butrent,thecreationofthewholecommunity,necessarilybelongstothewholecommunity.

Trythecaseofthelandholdersbythemaximsofthecommonlawbywhichtherightsofmanandmanaredetermined.Thecommonlawwearetoldistheperfectionofreason,andcertainlythelandownerscannotcomplainofitsdecision,forithasbeenbuiltupbyandforlandowners.Nowwhatdoesthelawallowtotheinnocentpossessorwhenthelandforwhichhepaidhismoneyisadjudgedrightfullytobelongtoanother?Nothingatall.Thathepurchasedingoodfaithgiveshimnorightorclaimwhatever.Thelawdoesnotconcernitselfwiththe”Intricatequestionofcompensation“totheinnocentpurchaser.Thelawdoesnotsay,asJohnStuartMillsays:”ThelandbelongstoA,thereforeBwhohasthoughthimselftheownerhasnorighttoanythingbuttherent,orcompensationforitssalablevalue.“ForthatwouldbeindeedlikeafamousfugitiveslavecasedecisioninwhichtheCourtwassaidtohavegiventhelawtotheNorthandtheniggertotheSouth.Thelawsimply

says:”ThelandbelongstoA,lettheSheriffputhiminpossession!“Itgivestheinnocentpurchaserofawrongfultitlenoclaim,itallowshimnocompensation.Andnotonlythis,ittakesfromhimalltheimprovementsthathehasingoodfaithmadeupontheland.Youmayhavepaidahighpriceforland,makingeveryexertiontoseethatthetitleisgood;youmayhavehelditinundisturbedpossessionforyearswithoutthoughtorhintofanadverseclaimant;madeitfruitfulbyyourtoilorerecteduponitacostlybuildingofgreatervaluethanthelanditself,oramodesthomeinwhichyouhope,surroundedbythefigtreesyouhaveplantedandthevinesyouhavedressed,topassyourdecliningdays;yetifQuirk,Gammon&Snapcanmouseoutatechnicalflawinyourparchmentsorhuntupsomeforgottenheirwhoneverdreamedofhisrights,notmerelytheland,butallyourimprovements,maybetakenawayfromyou.Andnotmerelythat.Accordingtothecommonlaw,whenyouhavesurrenderedthelandandgivenupyourimprovements,youmaybecalledupontoaccountfortheprofitsyouderivedfromthelandduringthetimeyouhadit.

NowifweapplytothiscaseofThePeoplevs.TheLandOwnersthesamemaximsofjusticethathavebeenformulatedbylandownersintolaw,andareappliedeverydayinEnglishandAmericancourtstodisputesbetweenmanandman,weshallnotonlynotthinkofgivingthelandholdersanycompensationfortheland,butshalltakealltheimprovementsandwhateverelsetheymayhaveaswell.

ButIdonotpropose,andIdonotsupposethatanyoneelsewillpropose,togosofar.Itissufficientifthepeopleresumetheownershipoftheland.Letthelandownersretaintheirimprovementsandpersonalpropertyinsecurepossession.

Andinthismeasureofjusticewouldbenooppression,noinjurytoanyclass.Thegreatcauseofthepresentunequaldistributionofwealth,withthesuffering,degradation,andwastethatitentails,wouldbesweptaway.Evenlandholderswouldshareinthegeneralgain.Thegainofeventhe

largelandholderswouldbearealone.Thegainofthesmalllandholderswouldbeenormous.ForinwelcomingJustice,menwelcomethehandmaidofLove.PeaceandPlentyfollowinhertrain,bringingtheirgoodgifts,nottosome,buttoall.

Howtruethisis,weshallhereaftersee.

IfinthischapterIhavespokenofjusticeandexpediencyasifjusticewereonethingandexpediencyanother,ithasbeenmerelytomeettheobjectionsofthosewhosotalk.Injusticeisthehighestandtruestexpediency.

PrinciplesofPoliticalEconomy,”Book1,Chap.2,Sec.6.

SocialStatics,“page142.[Itmaybewelltosayinthenewreprintofthisbook(1897)thatthisandallotherreferencestoHerbertSpencer’s”SocialStatics“arefromtheeditionofthatbookpublishedbyD.Appleton&Co.,NewYork,withhisconsent,from1864to1892.Atthattime”SocialStatics“wasrepudiated,andaneweditionunderthenameof”SocialStatics,abridgedandrevised,“hastakenitsplace.Fromthis,allthatthefirst”SocialStatics“hadsaidindenialofpropertyinlandhasbeeneliminated,anditofcoursecontainsnothingherereferredto.Mr.SpencerhasalsobeendrivenbythepersistenthecklingoftheEnglishsingletaxmen,whoinsistedonaskinghimthequestionssuggestedinthefirst”SocialStatics,“tobringoutasmallvolume,entitled”Mr.HerbertSpencerontheLandQuestion,“inwhicharereprintedinparallelcolumnsChap.IXof”SocialStatics“withwhatheconsidersvalidanswerstohimselfasgivenin”Justice,“1891.ThishasalsobeenreprintedbyD.Appleton&Co.,andconstitutes,Ithink,theveryfunniestanswertohimselfevermadebyamanwhoclaimedtobeaphilosopher.]

[BacktoTableofContents]

ChapterIVPropertyinLandHistoricallyConsidered

Whatmorethananythingelsepreventstherealizationoftheessentialinjusticeofprivatepropertyinlandandstandsinthewayofacandidconsiderationofanypropositionforabolishingit,isthatmentalhabitwhichmakesanythingthathaslongexistedseemnaturalandnecessary.

Wearesousedtothetreatmentoflandasindividualproperty,itissothoroughlyrecognizedinourlaws,manners,andcustoms,thatthevastmajorityofpeopleneverthinkofquestioningit;butlookuponitasnecessarytotheuseofland.Theyareunabletoconceive,oratleastitdoesnotentertheirheadstoconceive,ofsocietyasexistingoraspossiblewithoutthereductionoflandtoprivatepossession.Thefirststeptothecultivationorimprovementoflandseemstothemtogetforitaparticularowner,andaman’slandislookedonbythemasfullyandasequitablyhis,tosell,tolease,togive,ortobequeath,ashishouse,hiscattle,hisgoods,orhisfurniture.The”sacrednessofproperty“hasbeenpreachedsoconstantlyandeffectively,especiallybythose”conservatorsofancientbarbarism,“asVoltairestyledthelawyers,thatmostpeoplelookupontheprivateownershipoflandastheveryfoundationofcivilization,andiftheresumptionoflandascommonpropertyissuggested,thinkofitatfirstblusheitherasachimericalvagary,whichneverhasandnevercanberealized,orasapropositiontooverturnsocietyfromitsbaseandbringaboutareversiontobarbarism.

Ifitweretruethatlandhadalwaysbeentreatedasprivateproperty,thatwouldnotprovethejusticeornecessityofcontinuingsototreatit,anymorethantheuniversalexistenceofslavery,whichmightoncehavebeensafelyaffirmed,wouldprovethejusticeornecessityofmakingpropertyofhumanfleshandblood.

Notlongagomonarchyseemedallbutuniversal,andnotonlythekingsbutthemajorityoftheirsubjectsreallybelievedthatnocountrycouldgetalongwithoutaking.Yet,tosaynothingofAmerica,Francenowgetsalongwithoutaking;theQueenofEnglandandEmpressofIndiahasaboutasmuchtodowithgoverningherrealmsasthewoodenfigureheadofashiphasindeterminingitscourse,andtheothercrownedheadsofEuropesit,metaphoricallyspeaking,uponbarrelsofnitro-glycerine.

Somethingoverahundredyearsago,BishopButler,authorofthefamousAnalogy,declaredthat”aconstitutionofcivilgovernmentwithoutanyreligiousestablishmentisachimericalprojectofwhichthereisnoexample.“Asfortherebeingnoexample,hewasright.Nogovernmentatthattimeexisted,norwouldithavebeeneasytonameonethateverhadexisted,withoutsomesortofanestablishedreligion;yetintheUnitedStateswehavesinceprovedbythepracticeofacenturythatitispossibleforacivilgovernmenttoexistwithoutastatechurch.

Butwhile,wereittrue,thatlandhadalwaysandeverywherebeentreatedasprivatepropertywouldnotprovethatitshouldalwaysbesotreated,thisisnottrue.Onthecontrary,thecommonrighttolandhaseverywherebeenprimarilyrecognized,andprivateownershiphasnowheregrownupsaveastheresultofusurpation.Theprimaryandpersistentperceptionsofmankindarethatallhaveanequalrighttoland,andtheopinionthatprivatepropertyinlandisnecessarytosocietyisbutanoffspringofignorancethatcannotlookbeyonditsimmediatesurroundings—anideaofcomparativelymoderngrowth,asartificialandasbaselessasthatoftherightdivineofkings.

Theobservationsoftravelers,theresearchesofthecriticalhistorianswhowithinarecentperiodhavedonesomuchtoreconstructtheforgottenrecordsofthepeople,theinvestigationsofsuchmenasSirHenryMaine,EmiledeLaveleye,ProfessorNasseofBonn,andothers,intothegrowthofinstitutions,provethatwhereverhumansocietyhasformed,thecommonrightofmentotheuseoftheearthhasbeenrecognized,andthat

nowherehasunrestrictedindividualownershipbeenfreelyadopted.Historically,asethically,privatepropertyinlandisrobbery.Itnowherespringsfromcontract;itcannowherebetracedtoperceptionsofjusticeorexpediency;ithaseverywherehaditsbirthinwarandconquest,andintheselfishusewhichthecunninghavemadeofsuperstitionandlaw.

Whereverwecantracetheearlyhistoryofsociety,whetherinAsia,inEurope,inAfrica,inAmerica,orinPolynesia,landhasbeenconsidered,asthenecessaryrelationswhichhumanlifehastoitwouldleadtoitsconsideration—ascommonproperty,inwhichtherightsofallwhohadadmittedrightswereequal.Thatistosay,thatallmembersofthecommunity,allcitizens,asweshouldsay,hadequalrightstotheuseandenjoymentofthelandofthecommunity.Thisrecognitionofthecommonrighttolanddidnotpreventthefullrecognitionoftheparticularandexclusiverightinthingswhicharetheresultoflabor,norwasitabandonedwhenthedevelopmentofagriculturehadimposedthenecessityofrecognizingexclusivepossessionoflandinordertosecuretheexclusiveenjoymentoftheresultsofthelaborexpendedincultivatingit.Thedivisionoflandbetweentheindustrialunits,whetherfamilies,jointfamilies,orindividuals,wentonlyasfaraswasnecessaryforthatpurpose,pastureandforestlandsbeingretainedascommon,andequalityastoagriculturallandbeingsecured,eitherbyaperiodicalre-division,asamongtheTeutonicraces,orbytheprohibitionofalienation,asinthelawofMoses.

Thisprimaryadjustmentstillexists,inmoreorlessintactform,inthevillagecommunitiesofIndia,Russia,andtheSclavoniccountriesyet,oruntilrecently,subjectedtoTurkishrule;inthemountaincantonsofSwitzerland;amongtheKabylesinthenorthofAfrica,andtheKaffirsinthesouth;amongthenativepopulationofJava,andtheaboriginesofNewZealand—thatistosay,whereverextraneousinfluenceshaveleftintacttheformofprimitivesocialorganization.Thatiteverywhereexistedhasbeenwithinlateyearsabundantlyprovedbytheresearchesofmanyindependentstudentsandobservers,andwhichare,tomy

knowledge,bestsummarizedinthe”SystemsofLandTenureinVariousCountries,“publishedunderauthorityoftheCobdenClub,andinM.EmiledeLaveleye’s”PrimitiveProperty,“towhichIwouldreferthereaderwhodesirestoseethistruthdisplayedindetail.

”Inallprimitivesocieties,“saysM.deLaveleye,astheresultofaninvestigationwhichleavesnopartoftheworldunexplored—”inallprimitivesocieties,thesoilwasthejointpropertyofthetribesandwassubjecttoperiodicaldistributionamongallthefamilies,sothatallmightlivebytheirlaborasnaturehasordained.Thecomfortofeachwasthusproportionedtohisenergyandintelligence;noone,atanyrate,wasdestituteofthemeansofsubsistence,andinequalityincreasingfromgenerationtogenerationwasprovidedagainst.“

IfM.deLaveleyeberightinthisconclusion,andthatheisrighttherecanbenodoubt,how,itwillbeasked,hasthereductionoflandtoprivateownershipbecomesogeneral?

Thecauseswhichhaveoperatedtosupplantthisoriginalideaoftheequalrighttotheuseoflandbytheideaofexclusiveandunequalrightsmay,Ithink,beeverywherevaguelybutcertainlytraced.Theyareeverywherethesamewhichhaveledtothedenialofequalpersonalrightsandtotheestablishmentofprivilegedclasses.

Thesecausesmaybesummarizedastheconcentrationofpowerinthehandsofchieftainsandthemilitaryclass,consequentonastateofwarfare,whichenabledthemtomonopolizecommonlands;theeffectofconquest,inreducingtheconqueredtoastateofpredialslavery,anddividingtheirlandsamongtheconquerors,andindisproportionatesharetothechiefs;thedifferentiationandinfluenceofasacerdotalclass,andthedifferentiationandinfluenceofaclassofprofessionallawyers,whoseinterestswereservedbythesubstitutionofexclusive,inplaceofcommon,propertyinland—inequalityonceproducedalwaystendingtogreaterinequality,bythelawofattraction.

Itwasthestrugglebetweenthisideaofequalrightstothesoilandthetendencytomonopolizeitinindividualpossession,thatcausedtheinternalconflictsofGreeceandRome;itwasthecheckgiventothistendency—inGreecebysuchinstitutionsasthoseofLycurgusandSolon,andinRomebytheLicinianLawandsubsequentdivisionsofland—thatgavetoeachtheirdaysofstrengthandglory;anditwasthefinaltriumphofthistendencythatdestroyedboth.GreatestatesruinedGreece,asafterward”greatestatesruinedItaly,“andasthesoil,inspiteofthewarningsofgreatlegislatorsandstatesmen,passedfinallyintothepossessionofafew,populationdeclined,artsank,theintellectbecameemasculate,andtheraceinwhichhumanityhadattaineditsmostsplendiddevelopmentbecameaby-wordandreproachamongmen.

Theideaofabsoluteindividualpropertyinland,whichmoderncivilizationderivedfromRome,reacheditsfulldevelopmentthereinhistorictimes.Whenthefuturemistressoftheworldfirstloomsup,eachcitizenhadhislittlehomesteadplot,whichwasinalienable,andthegeneraldomain—“thecorn-landwhichwasofpublicright”—wassubjecttocommonuse,doubtlessunderregulationsorcustomswhichsecuredequality,asintheTeutonicmarkandSwissallmend.Itwasfromthispublicdomain,constantlyextendedbyconquest,thatthepatricianfamiliessucceededincarvingtheirgreatestates.Thesegreatestatesbythepowerwithwhichthegreatattractstheless,inspiteoftemporarychecksbylegallimitationandrecurringdivisions,finallycrushedoutallthesmallproprietors,addingtheirlittlepatrimoniestothelatifundiaoftheenormouslyrich,whiletheythemselveswereforcedintotheslavegangs,becamerent-payingcolonii,orelseweredrivenintothefreshlyconqueredforeignprovinces,wherelandwasgiventotheveteransofthelegions;ortothemetropolis,toswelltheranksoftheproletariatwhohadnothingtosellbuttheirvotes.

Cæsarism,soonpassingintoanunbridleddespotismoftheEasterntype,wastheinevitablepoliticalresult,andtheempire,evenwhileitembracedtheworld,becameinrealityashell,keptfromcollapseonlybythe

healthierlifeofthefrontiers,wherethelandhadbeendividedamongmilitarysettlersortheprimitiveusageslongersurvived.Butthelatifundia,whichhaddevouredthestrengthofItaly,creptsteadilyoutward,carvingthesurfaceofSicily,Africa,Spain,andGaulintogreatestatescultivatedbyslavesortenants.Thehardyvirtuesbornofpersonalindependencediedout,anexhaustiveagricultureimpoverishedthesoil,andwildbeastssupplantedmen,untilatlength,withastrengthnurturedinequality,thebarbariansbrokethrough;Romeperished;andofacivilizationoncesoproudnothingwasleftbutruins.

Thuscametopassthatmarvelousthing,whichatthetimeofRome’sgrandeurwouldhaveseemedasimpossibleasitseemsnowtousthattheComanchesorFlatheadsshouldconquertheUnitedStates,ortheLaplandersshoulddesolateEurope.Thefundamentalcauseistobesoughtinthetenureofland.Ontheonehand,thedenialofthecommonrighttolandhadresultedindecay;ontheother,equalitygavestrength.

”Freedom,“saysM.deLaveleye(PrimitiveProperty,p.116),”freedom,and,asaconsequence,theownershipofanundividedshareofthecommonproperty,towhichtheheadofeveryfamilyintheclanwasequallyentitled,wereintheGermanvillageessentialrights.Thissystemofabsoluteequalityimpressedaremarkablecharacterontheindividual,whichexplainshowsmallbandsofbarbariansmadethemselvesmastersoftheRomanEmpire,inspiteofitsskillfuladministration,itsperfectcentralizationanditscivillaw,whichhaspreservedthenameofwrittenreason.“

Itwas,ontheotherhand,thattheheartwaseatenoutofthatgreatempire.”Romeperished,“saysProfessorSeeley,”fromthefailureofthecropofmen.“

Inhislecturesonthe”HistoryofCivilizationinEurope,“andmoreelaboratelyinhislecturesonthe”HistoryofCivilizationinFrance,“M.GuizothasvividlydescribedthechaosthatinEuropesucceededthefall

oftheRomanEmpire—achaoswhich,ashesays,”carriedallthingsinitsbosom,“andfromwhichthestructureofmodernsocietywasslowlyevolved.Itisapicturewhichcannotbecompressedintoafewlines,butsufficeittosaythattheresultofthisinfusionofrudebutvigorouslifeintoRomanizedsocietywasadisorganizationoftheGerman,aswellastheRomanstructures—bothablendingandanadmixtureoftheideaofcommonrightsinthesoilwiththeideaofexclusiveproperty,substantiallyasoccurredinthoseprovincesoftheEasternEmpiresubsequentlyoverrunbytheTurks.Thefeudalsystem,whichwassoreadilyadoptedandsowidelyspread,wastheresultofsuchablending;butunderneath,andsidebysidewiththefeudalsystem,amoreprimitiveorganization,basedonthecommonrightsofthecultivators,tookrootorrevived,andhasleftitstracesalloverEurope.Thisprimitiveorganization,whichallotsequalsharesofcultivatedgroundandthecommonuseofuncultivatedground,andwhichexistedinancientItalyasinSaxonEngland,hasmaintaineditselfbeneathabsolutismandserfdominRussia,beneathMoslemoppressioninServia,andinIndiahasbeenswept,butnotentirelydestroyed,bywaveafterwaveofconquest,andcenturyaftercenturyofoppression.

Thefeudalsystem,whichisnotpeculiartoEurope,butseemstobethenaturalresultoftheconquestofasettledcountrybyaraceamongwhomequalityandindividualityareyetstrong,clearlyrecognized,intheoryatleast,thatthelandbelongstosocietyatlarge,nottotheindividual.Rudeoutcomeofanageinwhichmightstoodforrightasnearlyasitevercan(fortheideaofrightisineradicablefromthehumanmind,andmustinsomeshapeshowitselfevenintheassociationofpiratesandrobbers),thefeudalsystemyetadmittedinnoonetheuncontrolledandexclusiverighttoland.Afiefwasessentiallyatrust,andtoenjoymentwasannexedobligation.Thesovereign,theoreticallytherepresentativeofthecollectivepowerandrightsofthewholepeople,wasinfeudalviewtheonlyabsoluteownerofland.Andthoughlandwasgrantedtoindividualpossession,yetinitspossessionwereinvolvedduties,bywhichtheenjoyerofitsrevenueswassupposedtorenderbacktothe

commonwealthanequivalentforthebenefitswhichfromthedelegationofthecommonrighthereceived.

Inthefeudalschemethecrownlandssupportedpublicexpenditureswhicharenowincludedinthecivillist;thechurchlandsdefrayedthecostofpublicworshipandinstruction,ofthecareofthesickandofthedestitute,andmaintainedaclassofmenwhoweresupposedtobe,andnodoubttoagreatextentwere,devotingtheirlivestopurposesofpublicgood;whilethemilitarytenuresprovidedforthepublicdefense.Intheobligationunderwhichthemilitarytenantlaytobringintothefieldsuchandsuchaforcewhenneedshouldbe,aswellasintheaidhehadtogivewhenthesovereign’seldestsonwasknighted,hisdaughtermarried,orthesovereignhimselfmadeprisonerofwar,wasarudeandinefficientrecognition,butstillunquestionablyarecognition,ofthefact,obvioustothenaturalperceptionsofallmen,thatlandisnotindividualbutcommonproperty.

Noryetwasthecontrolofthepossessoroflandallowedtoextendbeyondhisownlife.Althoughtheprincipleofinheritancesoondisplacedtheprincipleofselection,aswherepowerisconcentrateditalwaysmust,yetfeudallawrequiredthatthereshouldalwaysbesomerepresentativeofafief,capableofdischargingthedutiesaswellasofreceivingthebenefitswhichwereannexedtoalandedestate,andwhothisshouldbewasnotlefttoindividualcaprice,butrigorouslydeterminedinadvance.Hencewardshipandotherfeudalincidents.Thesystemofprimogenitureanditsoutgrowth,theentail,wereintheirbeginningsnottheabsurditiestheyafterwardbecame.

Thebasisofthefeudalsystemwastheabsoluteownershipoftheland,anideawhichthebarbariansreadilyacquiredinthemidstofaconqueredpopulationtowhomitwasfamiliar;butoverthis,feudalismthrewasuperiorright,andtheprocessofinfeudationconsistedofbringingindividualdominionintosubordinationtothesuperiordominion,whichrepresentedthelargercommunityornation.Itsunitsweretheland

owners,whobyvirtueoftheirownershipwereabsolutelordsontheirowndomains,andwhothereperformedtheofficeofprotectionwhichM.Tainehassographicallydescribed,thoughperhapswithtoostrongacoloring,intheopeningchapterofhis”AncientRégime.“Theworkofthefeudalsystemwastobindtogethertheseunitsintonations,andtosubordinatethepowersandrightsoftheindividuallordsoflandtothepowersandrightsofcollectivesociety,asrepresentedbythesuzerainorking.

Thusthefeudalsystem,initsriseanddevelopment,wasatriumphoftheideaofthecommonrighttoland,changinganabsolutetenureintoaconditionaltenure,andimposingpeculiarobligationsinreturnfortheprivilegeofreceivingrent.Andduringthesametime,thepoweroflandownershipwastrenched,asitwere,frombelow,thetenancyatwillofthecultivatorsofthesoilverygenerallyhardeningintotenancybycustom,andtherentwhichthelordcouldexactfromthepeasantbecomingfixedandcertain.

Andamidthefeudalsystemthereremained,ortheregrewup,communitiesofcultivators,moreorlesssubjecttofeudaldues,whotilledthesoilascommonproperty;andalthoughthelords,whereandwhentheyhadthepower,claimedprettymuchalltheythoughtworthclaiming,yettheideaofcommonrightwasstrongenoughtoattachitselfbycustomtoaconsiderablepartoftheland.Thecommons,infeudalages,musthaveembracedaverylargeproportionoftheareaofmostEuropeancountries.ForinFrance(althoughtheappropriationsoftheselandsbythearistocracy,occasionallycheckedandrescindedbyroyaledict,hadgoneonforsomecenturiespriortotheRevolution,andduringtheRevolutionandFirstEmpirelargedistributionsandsalesweremade),thecommonorcommunallandsstillamount,accordingtoM.deLaveleye,to4,000,000hectares,or9,884,400acres.TheextentofthecommonlandofEnglandduringthefeudalagesmaybeinferredfromthefactthatthoughinclosuresbythelandedaristocracybeganduringthereignofHenryVII,itisstatedthatnolessthan7,660,413acresof

commonlandswereinclosedunderActspassedbetween1710and1843,ofwhich600,000acreshavebeeninclosedsince1845;anditisestimatedthattherestillremain2,000,000acresofcommoninEngland,thoughofcoursethemostworthlesspartsofthesoil.

Inadditiontothesecommonlands,thereexistedinFrance,untiltheRevolution,andinpartsofSpain,untilourownday,acustomhavingalltheforceoflaw,bywhichcultivatedlands,aftertheharvesthadbeengathered,becamecommonforpurposesofpasturageortravel,untilthetimehadcometousethegroundagain;andinsomeplacesacustombywhichanyonehadtherighttogouponthegroundwhichitsownerneglectedtocultivate,andtheretosowandreapacropinsecurity.Andifhechosetousemanureforthefirstcrop,heacquiredtherighttosowandgatherasecondcropwithoutletorhindrancefromtheowner.

ItisnotmerelytheSwissallmend,theDitmarshmark,theServianandRussianvillagecommunities;notmerelythelongridgeswhichonEnglishground,nowtheexclusivepropertyofindividuals,stillenabletheantiquariantotraceoutthegreatfieldsinancienttimedevotedtothetriennialrotationofcrops,andinwhicheachvillagerwasannuallyallottedhisequalplot;notmerelythedocumentaryevidencewhichcarefulstudentshavewithinlateyearsdrawnfromoldrecords;buttheveryinstitutionsunderwhichmoderncivilizationhasdeveloped,whichprovetheuniversalityandlongpersistenceoftherecognitionofthecommonrighttotheuseofthesoil.

Therestillremaininourlegalsystemssurvivalsthathavelosttheirmeaning,that,likethestillexistingremainsoftheancientcommonsofEngland,pointtothis.Thedoctrineofeminentdomain,existingaswellinMohammedanlaw,whichmakesthesovereigntheoreticallytheonlyabsoluteownerofland,springsfromnothingbuttherecognitionofthesovereignastherepresentativeofthecollectiverightsofthepeople;primogenitureandentail,whichstillexistinEngland,andwhichexistedinsomeoftheAmericanStatesahundredyearsago,arebutdistorted

formsofwhatwasonceanoutgrowthoftheapprehensionoflandascommonproperty.Theverydistinctionmadeinlegalterminologybetweenrealandpersonalpropertyisbutthesurvivalofaprimitivedistinctionbetweenwhatwasoriginallylookeduponascommonpropertyandwhatfromitsnaturewasalwaysconsideredthepeculiarpropertyoftheindividual.Andthegreatercareandceremonywhichareyetrequiredforthetransferoflandisbutasurvival,nowmeaninglessanduseless,ofthemoregeneralandceremoniousconsentoncerequiredforthetransferofrightswhichwerelookedupon,notasbelongingtoanyonemember,buttoeverymemberofafamilyortribe.

Thegeneralcourseofthedevelopmentofmoderncivilizationsincethefeudalperiodhasbeentothesubversionofthesenaturalandprimaryideasofcollectiveownershipinthesoil.Paradoxicalasitmayappear,theemergenceoflibertyfromfeudalbondshasbeenaccompaniedbyatendencyinthetreatmentoflandtotheformofownershipwhichinvolvestheenslavementoftheworkingclasses,andwhichisnowbeginningtobestronglyfeltalloverthecivilizedworld,inthepressureofanironyoke,whichcannotberelievedbyanyextensionofmerepoliticalpowerorpersonalliberty,andwhichpoliticaleconomistsmistakeforthepressureofnaturallaws,andworkmenfortheoppressionsofcapital.

Thisisclear—thatinGreatBritainto-daytherightofthepeopleasawholetothesoiloftheirnativecountryismuchlessfullyacknowledgedthanitwasinfeudaltimes.Amuchsmallerproportionofthepeopleownthesoil,andtheirownershipismuchmoreabsolute.Thecommons,oncesoextensiveandsolargelycontributingtotheindependenceandsupportofthelowerclasses,have,allbutasmallremnantofyetworthlessland,beenappropriatedtoindividualownershipandinclosed;thegreatestatesoftheChurch,whichwereessentiallycommonpropertydevotedtoapublicpurpose,havebeendivertedfromthattrusttoenrichindividuals;theduesofthemilitarytenantshavebeenshakenoff,andthecostofmaintainingthemilitaryestablishmentandpayingtheinterestuponan

immensedebtaccumulatedbywarshasbeensaddleduponthewholepeople,intaxesuponthenecessariesandcomfortsoflife.Thecrownlandshavemostlypassedintoprivatepossession,andforthesupportoftheroyalfamilyandallthepettyprincelingswhomarryintoit,theBritishworkmanmustpayinthepriceofhismugofbeerandpipeoftobacco.TheEnglishyeoman—thesturdybreedwhowonCrecy,andPoictiers,andAgincourt—isasextinctasthemastodon.TheScottishclansman,whoserighttothesoilofhisnativehillswasthenasundisputedasthatofhischieftain,hasbeendrivenouttomakeroomforthesheeprangesordeerparksofthatchieftain’sdescendant;thetribalrightoftheIrishmanhasbeenturnedintoatenancy-at-will.Thirtythousandmenhavelegalpowertoexpelthewholepopulationfromfive-sixthsoftheBritishIslands,andthevastmajorityoftheBritishpeoplehavenorightwhatevertotheirnativelandsavetowalkthestreetsortrudgetheroads.TothemmaybefittinglyappliedthewordsofaTribuneoftheRomanPeople:”MenofRome,“saidTiberiusGracchus—”menofRome,youarecalledthelordsoftheworld,yethavenorighttoasquarefootofitssoil!Thewildbeastshavetheirdens,butthesoldiersofItalyhaveonlywaterandair!“

Theresulthas,perhaps,beenmoremarkedinEnglandthananywhereelse,butthetendencyisobservableeverywhere,havinggonefurtherinEnglandowingtocircumstanceswhichhavedevelopeditwithgreaterrapidity.

Thereason,Itakeit,thatwiththeextensionoftheideaofpersonalfreedomhasgoneonanextensionoftheideaofprivatepropertyinland,isthatasintheprogressofcivilizationthegrosserformsofsupremacyconnectedwithlandownershipweredropped,orabolished,orbecamelessobvious,attentionwasdivertedfromthemoreinsidious,butreallymorepotentialforms,andthelandownerswereeasilyenabledtoputpropertyinlandonthesamebasisasotherproperty.

Thegrowthofnationalpower,eitherintheformofroyaltyor

parliamentarygovernment,strippedthegreatlordsofindividualpowerandimportance,andoftheirjurisdictionandpoweroverpersons,andsorepressedstrikingabuses,asthegrowthofRomanImperialismrepressedthemorestrikingcrueltiesofslavery.Thedisintegrationofthelargefeudalestates,which,untilthetendencytoconcentrationarisingfromthemoderntendencytoproductionuponalargescaleisstronglyfelt,operatedtoincreasethenumberoflandowners,andtheabolitionoftherestraintsbywhichlandownerswhenpopulationwassparserendeavoredtocompellaborerstoremainontheirestatesalsocontributedtodrawawayattentionfromtheessentialinjusticeinvolvedinprivatepropertyinland;whilethesteadyprogressoflegalideasdrawnfromtheRomanlaw,whichhasbeenthegreatmineandstorehouseofmodernjurisprudence,tendedtolevelthenaturaldistinctionbetweenpropertyinlandandpropertyinotherthings.Thus,withtheextensionofpersonalliberty,wentonanextensionofindividualproprietorshipinland.

Thepoliticalpowerofthebaronswas,moreover,notbrokenbytherevoltoftheclasseswhocouldclearlyfeeltheinjusticeoflandownership.Suchrevoltstookplace,againandagain;butagainandagainweretheyrepressedwithterrificcruelties.Whatbrokethepowerofthebaronswasthegrowthoftheartisanandtradingclasses,betweenwhosewagesandrentthereisnotthesameobviousrelation.Theseclasses,too,developedunderasystemofcloseguildsandcorporations,which,asIhavepreviouslyexplainedintreatingoftradecombinationsandmonopolies,enabledthemsomewhattofencethemselvesinfromtheoperationofthegenerallawofwages,andwhichweremuchmoreeasilymaintainedthannow,whentheeffectofimprovedmethodsoftransportation,andthediffusionofrudimentaryeducationandofcurrentnews,issteadilymakingpopulationmoremobile.Theseclassesdidnotsee,anddonotyetsee,thatthetenureoflandisthefundamentalfactwhichmustultimatelydeterminetheconditionsofindustrial,social,andpoliticallife.Andsothetendencyhasbeentoassimilatetheideaofpropertyinlandwiththatofpropertyinthingsofhumanproduction,andevenstepsbackwardhavebeentaken,andbeenhailed,asstepsinadvance.TheFrenchConstituent

Assembly;in1789,thoughtitwassweepingawayarelicoftyrannywhenitabolishedtithesandimposedthesupportoftheclergyongeneraltaxation.TheAbbéSieyèsstoodalonewhenhetoldthemthattheyweresimplyremittingtotheproprietorsataxwhichwasoneoftheconditionsonwhichtheyheldtheirlands,andreimposingitonthelaborofthenation.Butinvain.TheAbbéSieyès,beingapriest,waslookedonasdefendingtheinterestsofhisorder,whenintruthhewasdefendingtherightsofman.Inthosetithes,theFrenchpeoplemighthaveretainedalargepublicrevenuewhichwouldnothavetakenonecentimefromthewagesoflaborortheearningsofcapital.

AndsotheabolitionofthemilitarytenuresinEnglandbytheLongParliament,ratifiedaftertheaccessionofCharlesII,thoughsimplyanappropriationofpublicrevenuesbythefeudallandholders,whothusgotridoftheconsiderationonwhichtheyheldthecommonpropertyofthenation,andsaddleditonthepeopleatlarge,inthetaxationofallconsumers,haslongbeencharacterized,andisstillheldupinthelawbooks,asatriumphofthespiritoffreedom.YethereisthesourceoftheimmensedebtandheavytaxationofEngland.Hadtheformofthesefeudalduesbeensimplychangedintoonebetteradaptedtothechangedtimes,Englishwarsneedneverhaveoccasionedtheincurringofdebttotheamountofasinglepound,andthelaborandcapitalofEnglandneednothavebeentaxedasinglefarthingforthemaintenanceofamilitaryestablishment.Allthiswouldhavecomefromrent,whichthelandholderssincethattimehaveappropriatedtothemselves—fromthetaxwhichlandownershipleviesontheearningsoflaborandcapital.ThelandholdersofEnglandgottheirlandontermswhichrequiredthemeveninthesparsepopulationofNormandaystoputinthefield,uponcall,sixtythousandperfectlyequippedhorsemen,andonthefurtherconditionofvariousfinesandincidentswhichamountedtoaconsiderablepartoftherent.Itwouldprobablybealowestimatetoputthepecuniaryvalueofthesevariousservicesandduesatone-halftherentalvalueoftheland.Hadthelandholdersbeenkepttothiscontractandnolandbeenpermittedtobeinclosedexceptuponsimilarterms,theincomeaccruing

tothenationfromEnglishlandwouldto-daybegreaterbymanymillionsthantheentirepublicrevenuesoftheUnitedKingdom.Englandto-daymighthaveenjoyedabsolutefreetrade.Thereneednothavebeenacustomsduty,anexcise,license,orincometax,yetallthepresentexpenditurescouldbemet,andalargesurplusremaintobedevotedtoanypurposewhichwouldconducetothecomfortorwell-beingofthewholepeople.

Turningback,whereverthereislighttoguideus,wemayeverywhereseethatintheirfirstperceptions,allpeopleshaverecognizedthecommonownershipinland,andthatprivatepropertyinlandisanusurpation,acreationofforceandfraud.

AsMadamedeStaelsaid,”Libertyisancient.“Justice,ifweturntothemostancientrecords,willalwaysbefoundtohavethetitleofprescription.

TheinfluenceofthelawyershasbeenverymarkedinEurope,bothontheContinentandinGreatBritain,indestroyingallvestigesoftheancienttenure,andsubstitutingtheideaoftheRomanlaw,exclusiveownership.

LatifundiaperdidereItaliam.—Pliny.

AndrewBisset,in”TheStrengthofNations,“London,1859,asuggestiveworkinwhichhecallstheattentionoftheEnglishpeopletothismeasurebywhichthelandownersavoidedthepaymentoftheirrenttothenation,disputesthestatementofBlackstonethataknight’sservicewasbutfor40days,andsaysitwasduringnecessity.

[BacktoTableofContents]

ChapterVOfPropertyinLandintheUnitedStates

Intheearlierstagesofcivilizationweseethatlandiseverywhereregardedascommonproperty.And,turningfromthedimpasttoourowntimes,wemayseethatnaturalperceptionsarestillthesame,andthatwhenplacedundercircumstancesinwhichtheinfluenceofeducationandhabitisweakened,meninstinctivelyrecognizetheequalityofrighttothebountyofnature.

ThediscoveryofgoldinCaliforniabroughttogetherinanewcountrymenwhohadbeenusedtolookonlandastherightfulsubjectofindividualproperty,andofwhomprobablynotoneinathousandhadeverdreamedofdrawinganydistinctionbetweenpropertyinlandandpropertyinanythingelse.But,forthefirsttimeinthehistoryoftheAnglo-Saxonrace,thesemenwerebroughtintocontactwithlandfromwhichgoldcouldbeobtainedbythesimpleoperationofwashingitout.

Hadthelandwithwhichtheywerethuscalledupontodealbeenagricultural,orgrazing,orforestland,ofpeculiarrichness;haditbeenlandwhichderivedpeculiarvaluefromitssituationforcommercialpurposes,orbyreasonofthewaterpowerwhichitafforded;orevenhaditcontainedrichminesofcoal,ironorlead,thelandsystemtowhichtheyhadbeenusedwouldhavebeenapplied,anditwouldhavebeenreducedtoprivateownershipinlargetracts,aseventhepueblolandsofSanFrancisco,reallythemostvaluableinthestate,whichbySpanishlawhadbeensetaparttofurnishhomesforthefutureresidentsofthatcity,werereduced,withoutanyprotestworthspeakingof.Butthenoveltyofthecasebrokethroughhabitualideas,andthrewmenbackuponfirstprinciples,anditwasbycommonconsentdeclaredthatthisgold-bearinglandshouldremaincommonproperty,ofwhichnoonemighttakemorethanhecouldreasonablyuse,orholdforalongertimethanhecontinued

touseit.ThisperceptionofnaturaljusticewasacquiescedinbytheGeneralGovernmentandthecourts,andwhileplacerminingremainedofimportance,noattemptwasmadetooverrulethisreversiontoprimitiveideas.Thetitletothelandremainedinthegovernment,andnoindividualcouldacquiremorethanapossessoryclaim.Theminersineachdistrictfixedtheamountofgroundanindividualcouldtakeandtheamountofworkthatmustbedonetoconstituteuse.Ifthisworkwerenotdone,anyonecouldre-locatetheground.Thus,noonewasallowedtoforestallortolockupnaturalresources.Laborwasacknowledgedasthecreatorofwealth,wasgivenafreefield,andsecuredinitsreward.Thedevicewouldnothaveassuredcompleteequalityofrightsundertheconditionsthatinmostcountriesprevail;butundertheconditionsthatthereandthenexisted—asparsepopulation,anunexploredcountry,andanoccupationinitsnaturealottery,itsecuredsubstantialjustice.Onemanmightstrikeanenormouslyrichdeposit,andothersmightvainlyprospectformonthsandyears,butallhadanequalchance.NoonewasallowedtoplaythedoginthemangerwiththebountyoftheCreator.Theessentialideaoftheminingregulationswastopreventforestallingandmonopoly.UponthesameprinciplearebasedthemininglawsofMexico;andthesameprinciplewasadoptedinAustralia,inBritishColumbia,andinthediamondfieldsofSouthAfrica,foritaccordswithnaturalperceptionsofjustice.

WiththedecadenceofplacermininginCalifornia,theaccustomedideaofprivatepropertyfinallyprevailedinthepassageofalawpermittingthepatentingofminerallands.Theonlyeffectistolockupopportunities—togivetheownerofmininggroundthepowerofsayingthatnooneelsemayusewhathedoesnotchoosetousehimself.Andtherearemanycasesinwhichmininggroundisthuswithheldfromuseforspeculativepurposes,justasvaluablebuildinglotsandagriculturallandarewithheldfromuse.Butwhilethuspreventinguse,theextensiontominerallandofthesameprincipleofprivateownershipwhichmarksthetenureofotherlandshasdonenothingforthesecurityofimprovements.Thegreatestexpendituresofcapitalinopeninganddevelopingmines—expenditures

thatinsomecasesamountedtomillionsofdollars—weremadeuponpossessorytitles.

HadthecircumstanceswhichbesetthefirstEnglishsettlersinNorthAmericabeensuchastocalltheirattentiondenovotothequestionoflandownership,therecanbenodoubtthattheywouldhaverevertedtofirstprinciples,justastheyrevertedtofirstprinciplesinmattersofgovernment;andindividuallandownershipwouldhavebeenrejected,justasaristocracyandmonarchywererejected.Butwhileinthecountryfromwhichtheycamethissystemhadnotyetfullydevelopeditself,noritseffectsbeenfullyfelt,thefactthatinthenewcountryanimmensecontinentinvitedsettlementpreventedanyquestionofthejusticeandpolicyofprivatepropertyinlandfromarising.Forinanewcountry,equalityseemssufficientlyassuredifnooneispermittedtotakelandtotheexclusionoftherest.Atfirstnoharmseemstobedonebytreatingthislandasabsoluteproperty.Thereisplentyoflandleftforthosewhochoosetotakeit,andtheslaverythatinalaterstageofdevelopmentnecessarilyspringsfromtheindividualownershipoflandisnotfelt.

InVirginiaandtotheSouth,wherethesettlementhadanaristocraticcharacter,thenaturalcomplementofthelargeestatesintowhichthelandwascarvedwasintroducedintheshapeofnegroslaves.ButthefirstsettlersofNewEnglanddividedthelandas,twelvecenturiesbefore,theirancestorshaddividedthelandofBritain,givingtoeachheadofafamilyhistownlotandhisseedlot,whilebeyondlaythefreecommon.SofarasconcernedthegreatproprietorswhomtheEnglishkingsbyletterspatentendeavoredtocreate,thesettlerssawclearlyenoughtheinjusticeoftheattemptedmonopoly,andnoneoftheseproprietorsgotmuchfromtheirgrants;buttheplentifulnessoflandpreventedattentionfrombeingcalledtothemonopolywhichindividuallandownership,evenwhenthetractsaresmall,mustinvolvewhenlandbecomesscarce.Andsoithascometopassthatthegreatrepublicofthemodernworldhasadoptedatthebeginningofitscareeraninstitutionthatruinedtherepublicsofantiquity;thatapeoplewhoproclaimtheinalienablerightsofallmento

life,liberty,andthepursuitofhappinesshaveacceptedwithoutquestionaprinciplewhich,indenyingtheequalandinalienablerighttothesoil,finallydeniestheequalrighttolifeandliberty;thatapeoplewhoatthecostofabloodywarhaveabolishedchattelslavery,yetpermitslaveryinamorewidespreadanddangerousformtotakeroot.

Thecontinenthasseemedsowide,theareaoverwhichpopulationmightyetpoursovast,thatfamiliarizedbyhabitwiththeideaofprivatepropertyinland,wehavenotrealizeditsessentialinjustice.Fornotmerelyhasthisbackgroundofunsettledlandpreventedthefulleffectofprivateappropriationfrombeingfelt,evenintheoldersections,buttopermitamantotakemorelandthanhecoulduse,thathemightcompelthosewhoafterwardsneededittopayhimfortheprivilegeofusingit,hasnotseemedsounjustwhenothersintheirturnmightdothesamethingbygoingfurtheron.Andmorethanthis,theveryfortunesthathaveresultedfromtheappropriationofland,andthathavethusreallybeendrawnfromtaxeslevieduponthewagesoflabor,haveseemed,andhavebeenheralded,asprizesheldouttothelaborer.InallthenewerStates,andeventoaconsiderableextentintheolderones,ourlandedaristocracyisyetinitsfirstgeneration.Thosewhohaveprofitedbytheincreaseinthevalueoflandhavebeenlargelymenwhobeganlifewithoutacent.Theirgreatfortunes,manyofthemrunninguphighintothemillions,seemtothem,andtomanyothers,asthebestproofsofthejusticeofexistingsocialconditionsinrewardingprudence,foresight,industry,andthrift;whereas,thetruthisthatthesefortunesarebutthegainsofmonopoly,andarenecessarilymadeattheexpenseoflabor.Butthefactthatthosethusenrichedstartedaslaborershidesthis,andthesamefeelingwhichleadseveryticketbolderinalotterytodelightinimaginationinthemagnitudeoftheprizeshaspreventedeventhepoorfromquarrelingwithasystemwhichthusmademanypoormenrich.

Inshort,theAmericanpeoplehavefailedtoseetheessentialinjusticeofprivatepropertyinland,becauseasyettheyhavenotfeltitsfulleffects.Thispublicdomain—thevastextentoflandyettobereducedtoprivate

possession,theenormouscommontowhichthefacesoftheenergeticwerealwaysturned,hasbeenthegreatfactthat,sincethedayswhenthefirstsettlementsbegantofringetheAtlanticCoast,hasformedournationalcharacterandcoloredournationalthought.Itisnotthatwehaveeschewedatitledaristocracyandabolishedprimogeniture;thatweelectallourofficersfromschooldirectoruptopresident;thatourlawsruninthenameofthepeople,insteadofinthenameofaprince;thattheStateknowsnoreligion,andourjudgeswearnowigs—thatwehavebeenexemptedfromtheillsthatFourthofJulyoratorsusedtopointtoascharacteristicoftheeffetedespotismsoftheOldWorld.Thegeneralintelligence,thegeneralcomfort,theactiveinvention,thepowerofadaptationandassimilation,thefree,independentspirit,theenergyandhopefulnessthathavemarkedourpeople,arenotcauses,butresults—theyhavesprungfromunfencedland.Thispublicdomainhasbeenthetransmutingforcewhichhasturnedthethriftless,unambitiousEuropeanpeasantintotheself-reliantWesternfarmer;ithasgivenaconsciousnessoffreedomeventothedwellerincrowdedcities,andhasbeenawell-springofhopeeventothosewhohaveneverthoughtoftakingrefugeuponit.Thechildofthepeople,ashegrowstomanhoodinEurope,findsallthebestseatsatthebanquetoflifemarked”taken,“andmuststrugglewithhisfellowsforthecrumbsthatfall,withoutonechanceinathousandofforcingorsneakinghiswaytoaseat.InAmerica,whateverhiscondition,therehasalwaysbeentheconsciousnessthatthepublicdomainlaybehindhim;andtheknowledgeofthisfact,actingandreacting,haspenetratedourwholenationallife,givingtoitgenerosityandindependence,elasticityandambition.AllthatweareproudofintheAmericancharacter;allthatmakesourconditionsandinstitutionsbetterthanthoseofoldercountries,wemaytracetothefactthatlandhasbeencheapintheUnitedStates,becausenewsoilhasbeenopentotheemigrant.

ButouradvancehasreachedthePacific.Furtherwestwecannotgo,andincreasingpopulationcanbutexpandnorthandsouthandfillupwhathasbeenpassedover.North,itisalreadyfillingupthevalleyoftheRed

River,pressingintothatoftheSaskatchewanandpre-emptingWashingtonTerritory;south,itiscoveringwesternTexasandtakingupthearablevalleysofNewMexicoandArizona.

Therepublichasentereduponanewera,anerainwhichthemonopolyofthelandwilltellwithacceleratingeffect.Thegreatfactwhichhasbeensopotentisceasingtobe.Thepublicdomainisalmostgone—averyfewyearswillenditsinfluence,alreadyrapidlyfailing.Idonotmeantosaythattherewillbenopublicdomain.ForalongtimetocometherewillbemillionsofacresofpubliclandscarriedonthebooksoftheLandDepartment.Butitmustberememberedthatthebestpartofthecontinentforagriculturalpurposesisalreadyoverrun,andthatitisthepoorestlandthatisleft.Itmustberememberedthatwhatremainscomprisesthegreatmountainranges,thesteriledeserts,thehighplainsfitonlyforgrazing.Anditmustberememberedthatmuchofthislandwhichfiguresinthereportsasopentosettlementisunsurveyedland,whichhasbeenappropriatedbypossessoryclaimsorlocationswhichdonotappearuntilthelandisreturnedassurveyed.CaliforniafiguresonthebooksoftheLandDepartmentasthegreatestlandstateoftheUnion,containingnearly100,000,000acresofpublicland—somethinglikeone-twelfthofthewholepublicdomain.YetsomuchofthisiscoveredbyrailroadgrantsorheldinthewayofwhichIhavespoken;somuchconsistsofuntillablemountainsorplainswhichrequireirrigation;somuchismonopolizedbylocationswhichcommandthewater,thatasamatteroffactitisdifficulttopointtheimmigranttoanypartoftheStatewherehecantakeupafarmonwhichhecansettleandmaintainafamily,andsomen,wearyofthequest,endbybuyinglandorrentingitonshares.ItisnotthatthereisanyrealscarcityoflandinCalifornia—for,anempireinherself,CaliforniawillsomedaymaintainapopulationaslargeasthatofFrance—butappropriationhasgotaheadofthesettlerandmanagestokeepjustaheadofhim.

SometwelveorfifteenyearsagothelateBenWadeofOhiosaid,inaspeechintheUnitedStatesSenate,thatbythecloseofthiscenturyevery

acreofordinaryagriculturallandintheUnitedStateswouldbeworth650ingold.Itisalreadyclearthatifheerredatall,itwasinoverstatingthetime.Inthetwenty-oneyearsthatremainofthepresentcentury,ifourpopulationkeeponincreasingattheratewhichithasmaintainedsincetheinstitutionofthegovernment,withtheexceptionofthedecadewhichincludedthecivilwar,therewillbeanadditiontoourpresentpopulationofsomethinglikeforty-fivemillions,anadditionofsomesevenmillionsmorethanthetotalpopulationoftheUnitedStatesasshownbythecensusof1870,andnearlyhalfasmuchagainasthepresentpopulationofGreatBritain.ThereisnoquestionabouttheabilityoftheUnitedStatestosupportsuchapopulationandmanyhundredsofmillionsmore,and,underpropersocialadjustments,tosupporttheminincreasedcomfort;butinviewofsuchanincreaseofpopulation,whatbecomesoftheunappropriatedpublicdomain?Practicallytherewillsoonceasetobeany.Itwillbeaverylongtimebeforeitisallinuse;butitwillbeaveryshorttime,aswearegoing,beforeallthatmencanturntousewillhaveanowner.

Buttheevileffectsofmakingthelandofawholepeopletheexclusivepropertyofsomedonotwaitforthefinalappropriationofthepublicdomaintoshowthemselves.Itisnotnecessarytocontemplatetheminthefuture;wemayseetheminthepresent.Theyhavegrownwithourgrowth,andarestillincreasing.

Weplownewfields,weopennewmines,wefoundnewcities;wedrivebacktheIndianandexterminatethebuffalo;wegirdlethelandwithironroadsandlacetheairwithtelegraphwires;weaddknowledgetoknowledge,andutilizeinventionafterinvention;webuildschoolsandendowcolleges;yetitbecomesnoeasierforthemassesofourpeopletomakealiving.Onthecontrary,itisbecomingharder.Thewealthyclassisbecomingmorewealthy;butthepoorerclassisbecomingmoredependent.Thegulfbetweentheemployedandtheemployerisgrowingwider;socialcontrastsarebecomingsharper;asliveriedcarriagesappear,sodobarefootedchildren.Wearebecomingusedtotalkoftheworking

classesandthepropertiedclasses;beggarsarebecomingsocommonthatwhereitwasoncethoughtacrimelittleshortofhighwayrobberytorefusefoodtoonewhoaskedforit,thegateisnowbarredandthebulldogloosed,whilelawsarepassedagainstvagrantswhichsuggestthoseofHenryVIII.

Wecallourselvesthemostprogressivepeopleonearth.Butwhatisthegoalofourprogress,iftheseareitswaysidefruits?

Thesearetheresultsofprivatepropertyinland—theeffectsofaprinciplethatmustactwithincreasingandincreasingforce.Itisnotthatlaborershaveincreasedfasterthancapital;itisnotthatpopulationispressingagainstsubsistence;itisnotthatmachineryhasmadeworkscarce;itisnotthatthereisanyrealantagonismbetweenlaborandcapital—itissimplythatlandisbecomingmorevaluable;thatthetermsonwhichlaborcanobtainaccesstothenaturalopportunitieswhichaloneenableittoproducearebecomingharderandharder.Thepublicdomainisrecedingandnarrowing.Propertyinlandisconcentrating.Theproportionofourpeoplewhohavenolegalrighttothelandonwhichtheyliveisbecomingsteadilylarger.

SaystheNewYorkWorld:”Anonresidentproprietary,likethatofIreland,isgettingtobethecharacteristicoflargefarmingdistrictsinNewEngland,addingyearlytothenominalvalueofleaseholdfarms;advancingyearlytherentdemanded,andsteadilydegradingthecharacterofthetenantry.“AndtheNation,alludingtothesamesection,says:”Increasednominalvalueofland,higherrents,fewerfarmsoccupiedbyowners;diminishedproduct;lowerwages;amoreignorantpopulation;increasingnumberofwomenemployedatbard,outdoorlabor(surestsignofadecliningcivilization),andasteadydeteriorationinthestyleoffarming—thesearetheconditionsdescribedbyacumulativemassofevidencethatisperfectlyirresistible.“

Thesametendencyisobservableinthenewstates,wherethelargescale

ofcultivationrecallsthelatifundiathatruinedancientItaly.InCaliforniaaverylargeproportionofthefarminglandisrentedfromyeartoyear,atratesvaryingfromafourthtoevenhalfthecrop.

Thehardertimes,thelowerwages,theincreasingpovertyperceptibleintheUnitedStatesarebutresultsofthenaturallawswehavetraced—lawsasuniversalandasirresistibleasthatofgravitation.Wedidnotestablishtherepublicwhen,inthefaceofprincipalitiesandpowers,weflungthedeclarationoftheinalienablerightsofman;weshallneverestablishtherepublicuntilwepracticallycarryoutthatdeclarationbysecuringtothepoorestchildbornamongusanequalrighttohisnativesoil!WedidnotabolishslaverywhenweratifiedtheFourteenthAmendment;toabolishslaverywemustabolishprivatepropertyinland!Unlesswecomebacktofirstprinciples,unlesswerecognizenaturalperceptionsofequity,unlessweacknowledgetheequalrightofalltoland,ourfreeinstitutionswillbeinvain;ourcommonschoolswillbeinvain;ourdiscoveriesandinventionswillbutaddtotheforcethatpressesthemassesdown!

[BacktoTableofContents]

BookVIIIApplicationoftheRemedy

ChapterI.PrivatePropertyinLandInconsistentwiththeBestUseofLandChapterII.HowEqualRightstotheLandMayBeAssertedandSecuredChapterIII.ThePropositionTriedbytheCanonsofTaxationChapterIV.IndorsementsandObjections

Whyhesitate?Yearefull-beardedmen,WithGod-implantedwill,andcourageifYedarebutshowit.NeveryetwaswillButfoundsomewayormeanstoworkitout,Nore’erdidFortunefrownonhimwhodared.Shallweinpresenceofthisgrievouswrong,Inthissupremestmomentofalltime,Standtrembling,cowering,whenwithoneboldstrokeThesegroaningmillionsmightbeeverfree?—Andthatonestrokesojust,sogreatlygood,Solevelwiththehappinessofman,Thatalltheangelswillapplaudthedeed.

—E.R.Taylor.

[BacktoTableofContents]

ChapterIPrivatePropertyinLandInconsistentwiththeBestUseofLand

Thereisadelusionresultingfromthetendencytoconfoundtheaccidentalwiththeessential—adelusionwhichthelawwritershavedonetheirbesttoextend,andpoliticaleconomistsgenerallyhaveacquiescedin,ratherthanendeavoredtoexpose—thatprivatepropertyinlandisnecessarytotheproperuseofland,andthatagaintomakelandcommonpropertywouldbetodestroycivilizationandreverttobarbarism.

Thisdelusionmaybelikenedtotheideawhich,accordingtoCharlesLamb,solongprevailedamongtheChineseafterthesavorofroastporkhadbeenaccidentallydiscoveredbytheburningdownofHo-ti’shut—thattocookapigitwasnecessarytosetfiretoahouse.But,thoughinLamb’scharmingdissertationitwasrequiredthatasageshouldarisetoteachpeoplethattheymightroastpigswithoutburningdownhouses,itdoesnottakeasagetoseethatwhatisrequiredfortheimprovementoflandisnotabsoluteownershipoftheland,butsecurityfortheimprovements.Thiswillbeobvioustowhoeverwilllookaroundhim.Whilethereisnomorenecessityformakingamantheabsoluteandexclusiveownerofland,inordertoinducehimtoimproveit,thanthereisofburningdownahouseinordertocookapig;whilethemakingoflandprivatepropertyisasrude,wasteful,anduncertainadeviceforsecuringimprovement,astheburningdownofahouseisarude,wasteful,anduncertaindeviceforroastingapig,wehavenottheexcuseforpersistingintheonethatLamb’sChinamenhadforpersistingintheother.Untilthesagearosewhoinventedtherudegridiron,which,accordingtoLamb,precededthespitandoven,noonehadknownorheardofapigbeingroasted,exceptbyahousebeingburned.But,amongus,nothingismorecommonthanforlandtobeimprovedbythosewho

donotownit.ThegreaterpartofthelandofGreatBritainiscultivatedbytenants,thegreaterpartofthebuildingsofLondonarebuiltuponleasedground,andevenintheUnitedStatesthesamesystemprevailseverywheretoagreaterorlessextent.Thusitisacommonmatterforusetobeseparatedfromownership.

WouldnotallthislandbecultivatedandimprovedjustaswelliftherentwenttotheStateormunicipality,asnow,whenitgoestoprivateindividuals?Ifnoprivateownershipinlandwereacknowledged,butalllandwereheldinthisway,theoccupieroruserpayingrenttotheState,wouldnotlandbeusedandimprovedaswellandassecurelyasnow?Therecanbebutoneanswer:Ofcourseitwould.Thenwouldtheresumptionoflandascommonpropertyinnowiseinterferewiththeproperuseandimprovementofland.

Whatisnecessaryfortheuseoflandisnotitsprivateownership,butthesecurityofimprovements.Itisnotnecessarytosaytoaman,”thislandisyours,“inordertoinducehimtocultivateorimproveit.Itisonlynecessarytosaytohim,”whateveryourlabororcapitalproducesonthislandshallbeyours.“Giveamansecuritythathemayreap,andhewillsow;assurehimofthepossessionofthehousehewantstobuild,andhewillbuildit.Thesearethenaturalrewardsoflabor.Itisforthesakeofthereapingthatmensow;itisforthesakeofpossessinghousesthatmenbuild.Theownershipoflandhasnothingtodowithit.

Itwasforthesakeofobtainingthissecurity,thatinthebeginningofthefeudalperiodsomanyofthesmallerlandholderssurrenderedtheownershipoftheirlandstoamilitarychieftain,receivingbacktheuseoftheminfiefortrust,andkneelingbareheadedbeforethelord,withtheirhandsbetweenhishands,sworetoservehimwithlife,andlimb,andworldlyhonor.SimilarinstancesofthegivingupofownershipinlandforthesakeofsecurityinitsenjoymentaretobeseeninTurkey,whereapeculiarexemptionfromtaxationandextortionattachestovakouf,orchurchlands,andwhereitisacommonthingforalandownertosellhis

landtoamosqueforanominalprice,withtheunderstandingthathemayremainastenantuponitatafixedrent.

Itisnotthemagicofproperty,asArthurYoungsaid,thathasturnedFlemishsandsintofruitfulfields.Itisthemagicofsecuritytolabor.Thiscanbesecuredinotherwaysthanmakinglandprivateproperty,justastheheatnecessarytoroastapigcanbesecuredinotherwaysthanbyburningdownhouses.ThemerepledgeofanIrishlandlordthatfortwentyyearshewouldnotclaiminrentanyshareintheircultivationinducedIrishpeasantstoturnabarrenmountainintogardens;onthemeresecurityofafixedgroundrentforatermofyearsthemostcostlybuildingsofsuchcitiesasLondonandNewYorkareerectedonleasedground.Ifwegiveimproverssuchsecurity,wemaysafelyabolishprivatepropertyinland.

Thecompleterecognitionofcommonrightstolandneedinnowayinterferewiththecompleterecognitionofindividualrighttoimprovementsorproduce.Twomenmayownashipwithoutsawingherinhalf.Theownershipofarailwaymaybedividedintoahundredthousandshares,andyettrainsberunwithasmuchsystemandprecisionasiftherewerebutasingleowner.InLondon,jointstockcompanieshavebeenformedtoholdandmanagerealestate.Everythingcouldgoonasnow,andyetthecommonrighttolandbefullyrecognizedbyappropriatingrenttothecommonbenefit.ThereisalotinthecenterofSanFranciscotowhichthecommonrightsofthepeopleofthatcityareyetlegallyrecognized.Thislotisnotcutupintoinfinitesimalpiecesnoryetisitanunusedwaste.Itiscoveredwithfinebuildings,thepropertyofprivateindividuals,thatstandthereinperfectsecurity.Theonlydifferencebetweenthislotandthosearoundit,isthattherentoftheonegoesintothecommonschoolfund,therentoftheothersintoprivatepockets.Whatistopreventthelandofawholecountrybeingheldbythepeopleofthecountryinthisway?

ItwouldbedifficulttoselectanyportionoftheterritoryoftheUnited

StatesinwhichtheconditionscommonlytakentonecessitatethereductionoflandtoprivateownershipexistinhigherdegreethanonthelittleisletsofSt.PeterandSt.Paul,intheAleutianArchipelago,acquiredbytheAlaskapurchasefromRussia.Theseislandsarethebreedingplacesofthefurseal,ananimalsotimidandwarythattheslightestfrightcausesittoabandonitsaccustomedresort,nevertoreturn.Topreventtheutterdestructionofthisfishery,withoutwhichtheislandsareofnousetoman,itisnotonlynecessarytoavoidkillingthefemalesandyoungcubs,butevensuchnoisesasthedischargeofapistolorthebarkingofadog.Themenwhodothekillingmustbeinnohurry,butquietlywalkaroundamongthesealswholinetherockybeaches,untilthetimidanimals,soclumsyonlandbutsogracefulinwater,shownomoresignoffearthanlazilytowaddleoutoftheway.Thenthosewhocanbekilledwithoutdiminutionoffutureincreasearecarefullyseparatedandgentlydriveninland,outofsightandhearingoftheherds,wheretheyaredispatchedwithclubs.Tothrowsuchafisheryasthisopentowhoeverchosetogoandkill—whichwouldmakeittotheinterestofeachpartytokillasmanyastheycouldatthetimewithoutreferencetothefuture—wouldbeutterlytodestroyitinafewseasons,assimilarfisheriesinotheroceanshavebeendestroyed.Butitisnotnecessary,therefore,tomaketheseislandsprivateproperty.Thoughforreasonsgreatlylesscogent,thegreatpublicdomainoftheAmericanpeoplehasbeenmadeovertoprivateownershipasfastasanybodycouldbegottotakeit,theseislandshavebeenleasedatarentof6317,500peryear,probablynotverymuchlessthantheycouldhavebeensoldforatthetimeoftheAlaskapurchase.Theyhavealreadyyieldedtwomillionsandahalftothenationaltreasury,andtheyarestill,inunimpairedvalue(forunderthecarefulmanagementoftheAlaskaFurCompanythesealsincreaseratherthandiminish),thecommonpropertyofthepeopleoftheUnitedStates.

Sofarfromtherecognitionofprivatepropertyinlandbeingnecessarytotheproperuseofland,thecontraryisthecase.Treatinglandasprivatepropertystandsinthewayofitsproperuse.Werelandtreatedaspublicpropertyitwouldbeusedandimprovedassoonastherewasneedforits

useorimprovement,butbeingtreatedasprivateproperty,theindividualownerispermittedtopreventothersfromusingorimprovingwhathecannotorwillnotuseorimprovehimself.Whenthetitleisindispute,themostvaluablelandliesunimprovedforyears;inmanypartsofEnglandimprovementisstoppedbecause,theestatesbeingentailed,nosecuritytoimproverscanbegiven;andlargetractsofgroundwhich,weretheytreatedaspublicproperty,wouldbecoveredwithbuildingsandcrops,arekeptidletogratifythecapriceoftheowner.InthethicklysettledpartsoftheUnitedStatesthereisenoughlandtomaintainthreeorfourtimesourpresentpopulation,lyingunused,becauseitsownersareholdingitforhigherprices,andimmigrantsareforcedpastthisunusedlandtoseekhomeswheretheirlaborwillbefarlessproductive.Ineverycityvaluablelotsmaybeseenlyingvacantforthesamereason.Ifthebestuseoflandbethetest,thenprivatepropertyinlandiscondemned,asitiscondemnedbyeveryotherconsideration.Itisaswastefulanduncertainamodeofsecuringtheproperuseoflandastheburningdownofhousesisofroastingpigs.

ThefixedrentundertheleasetotheAlaskaFurCompanyis655,000ayear,withapaymentof62.62½oneachskin,whichon100,000skins,towhichthetakeislimited,amountsto6262,500—atotalrentof6317,500.

[BacktoTableofContents]

ChapterIIHowEqualRightstotheLandMayBeAssertedandSecured

Wehavetracedthewantandsufferingthateverywhereprevailamongtheworkingclasses,therecurringparoxysmsofindustrialdepression,thescarcityofemployment,thestagnationofcapital,thetendencyofwagestothestarvationpoint,thatexhibitthemselvesmoreandmorestronglyasmaterialprogressgoeson,tothefactthatthelandonwhichandfromwhichallmustliveismadetheexclusivepropertyofsome.

Wehaveseenthatthereisnopossibleremedyfortheseevilsbuttheabolitionoftheircause;wehaveseenthatprivatepropertyinlandhasnowarrantinjustice,butstandscondemnedasthedenialofnaturalright—asubversionofthelawofnaturethatassocialdevelopmentgoesonmustcondemnthemassesofmentoaslaverythehardestandmostdegrading.

Wehaveweighedeveryobjection,andseenthatneitheronthegroundofequityorexpediencyisthereanythingtodeterusfrommakinglandcommonpropertybyconfiscatingrent.

Butaquestionofmethodremains.Howshallwedoit?

Weshouldsatisfythelawofjustice,weshouldmeetalleconomicrequirements,byatonestrokeabolishingallprivatetitles,declaringalllandpublicproperty,andlettingitouttothehighestbiddersinlotstosuit,undersuchconditionsaswouldsacredlyguardtheprivaterighttoimprovements.

Thusweshouldsecure,inamorecomplexstateofsociety,thesameequalityofrightsthatinaruderstateweresecuredbyequalpartitionsofthesoil,andbygivingtheuseofthelandtowhoevercouldprocurethe

mostfromit,weshouldsecurethegreatestproduction.

Suchaplan,insteadofbeingawild,impracticablevagary,has(withtheexceptionthathesuggestscompensationtothepresentholdersofland—undoubtedlyacarelessconcessionwhichheuponreflectionwouldreconsider)beenindorsedbynolesseminentathinkerthanHerbertSpencer,who(”SocialStatics,“Chap.IX,Sec.8)saysofit:

”Suchadoctrineisconsistentwiththehigheststateofcivilization;maybecarriedoutwithoutinvolvingacommunityofgoods,andneedcausenoveryseriousrevolutioninexistingarrangements.Thechangerequiredwouldsimplybeachangeoflandlords.Separateownershipwouldmergeintothejoint-stockownershipofthepublic.Insteadofbeinginthepossessionofindividuals,thecountrywouldbeheldbythegreatcorporatebody—society.Insteadofleasinghisacresfromanisolatedproprietor,thefarmerwouldleasethemfromthenation.InsteadofpayinghisrenttotheagentofSirJohnorhisGrace,hewouldpayittoanagentordeputyagentofthecommunity.Stewardswouldbepublicofficialsinsteadofprivateones,andtenancytheonlylandtenure.Astateofthingssoorderedwouldbeinperfectharmonywiththemorallaw.Underitallmenwouldbeequallylandlords,allmenwouldbealikefreetobecometenants.BBBClearly,therefore,onsuchasystem,theearthmightbeenclosed,occupiedandcultivated,inentiresubordinationtothelawofequalfreedom.“

Butsuchaplan,thoughperfectlyfeasible,doesnotseemtomethebest.OrratherIproposetoaccomplishthesamethinginasimpler,easier,andquieterway,thanthatofformallyconfiscatingallthelandandformallylettingitouttothehighestbidders.

Todothatwouldinvolveaneedlessshocktopresentcustomsandhabitsofthought—whichistobeavoided.

Todothatwouldinvolveaneedlessextensionofgovernmental

machinery—whichistobeavoided.

Itisanaxiomofstatesmanship,whichthesuccessfulfoundersoftyrannyhaveunderstoodandacteduponthatgreatchangescanbestbebroughtaboutunderoldforms.We,whowouldfreemen,shouldheedthesametruth.Itisthenaturalmethod.Whennaturewouldmakeahighertype,shetakesaloweroneanddevelopsit.This,also,isthelawofsocialgrowth.Letusworkbyit.Withthecurrentwemayglidefastandfar.Againstit,itishardpullingandslowprogress.

Idonotproposeeithertopurchaseortoconfiscateprivatepropertyinland.Thefirstwouldbeunjust;thesecond,needless.Lettheindividualswhonowholditstillretain,iftheywantto,possessionofwhattheyarepleasedtocalltheirland.Letthemcontinuetocallittheirland.Letthembuyandsell,andbequeathanddeviseit.Wemaysafelyleavethemtheshell,ifwetakethekernel.Itisnotnecessarytoconfiscateland;itisonlynecessarytoconfiscaterent.

NortotakerentforpublicusesisitnecessarythattheStateshouldbotherwiththelettingoflands,andassumethechancesofthefavoritism,collusion,andcorruptionthismightinvolve.Itisnotnecessarythatanynewmachineryshouldbecreated.Themachineryalreadyexists.Insteadofextendingit,allwehavetodoistosimplifyandreduceit.ByleavingtolandownersapercentageofrentwhichwouldprobablybemuchlessthanthecostandlossinvolvedinattemptingtorentlandsthroughStateagency,andbymakinguseofthisexistingmachinery,wemay,withoutjarorshock,assertthecommonrighttolandbytakingrentforpublicuses.

Wealreadytakesomerentintaxation.Wehaveonlytomakesomechangesinourmodesoftaxationtotakeitall.

WhatI,therefore,propose,asthesimpleyetsovereignremedy,whichwillraisewages,increasetheearningsofcapital,extirpatepauperism,

abolishpoverty,giveremunerativeemploymenttowhoeverwishesit,affordfreescopetohumanpowers,lessencrime,elevatemorals,andtaste,andintelligence,purifygovernmentandcarrycivilizationtoyetnoblerheights,is—toappropriaterentbytaxation.

InthiswaytheStatemaybecometheuniversallandlordwithoutcallingherselfso,andwithoutassumingasinglenewfunction.Inform,theownershipoflandwouldremainjustasnow.Noowneroflandneedbedispossessed,andnorestrictionneedbeplacedupontheamountoflandanyonecouldhold.For,rentbeingtakenbytheStateintaxes,land,nomatterinwhosenameitstood,orinwhatparcelsitwasheld,wouldbereallycommonproperty,andeverymemberofthecommunitywouldparticipateintheadvantagesofitsownership.

Now,insomuchasthetaxationofrent,orlandvalues,mustnecessarilybeincreasedjustasweabolishothertaxes,wemayputthepropositionintopracticalformbyproposing—

Toabolishalltaxationsavethatuponlandvalues.

Aswehaveseen,thevalueoflandisatthebeginningofsocietynothing,butassocietydevelopsbytheincreaseofpopulationandtheadvanceofthearts,itbecomesgreaterandgreater.Ineverycivilizedcountry,eventhenewest,thevalueofthelandtakenasawholeissufficienttobeartheentireexpensesofgovernment.Inthebetterdevelopedcountriesitismuchmorethansufficient.Henceitwillnotbeenoughmerelytoplacealltaxesuponthevalueofland.Itwillbenecessary,whererentexceedsthepresentgovernmentalrevenues,commensuratelytoincreasetheamountdemandedintaxation,andtocontinuethisincreaseassocietyprogressesandrentadvances.Butthisissonaturalandeasyamatter,thatitmaybeconsideredasinvolved,oratleastunderstood,inthepropositiontoputalltaxesonthevalueofland.Thatisthefirststepuponwhichthepracticalstrugglemustbemade.Whenthehareisoncecaughtandkilled,cookinghimwillfollowasamatterofcourse.Whenthe

commonrighttolandissofarappreciatedthatalltaxesareabolishedsavethosewhichfalluponrent,thereisnodangerofmuchmorethanisnecessarytoinducethemtocollectthepublicrevenuesbeinglefttoindividuallandholders.

Experiencehastaughtme(forIhavebeenforsomeyearsendeavoringtopopularizethisproposition)thatwherevertheideaofconcentratingalltaxationuponlandvaluesfindslodgmentsufficienttoinduceconsideration,itinvariablymakesway,buttherearefewoftheclassesmosttobebenefitedbyit,whoatfirst,orevenforalongtimeafterward,seeitsfullsignificanceandpower.Itisdifficultforworkingmentogetovertheideathatthereisarealantagonismbetweencapitalandlabor.Itisdifficultforsmallfarmersandhomesteadownerstogetovertheideathattoputalltaxesonthevalueoflandwouldbeundulytotaxthem.Itisdifficultforbothclassestogetovertheideathattoexemptcapitalfromtaxationwouldbetomaketherichricher,andthepoorpoorer.Theseideasspringfromconfusedthought.Butbehindignoranceandprejudicethereisapowerfulinterest,whichhashithertodominatedliterature,education,andopinion.Agreatwrongalwaysdieshard,andthegreatwrongwhichineverycivilizedcountrycondemnsthemassesofmentopovertyandwant,willnotdiewithoutabitterstruggle.

IdonotthinktheideasofwhichIspeakcanbeentertainedbythereaderwhohasfollowedmethusfar;butinasmuchasanypopulardiscussionmustdealwiththeconcrete,ratherthantheabstract,letmeaskhimtofollowmesomewhatfurther,thatwemaytrytheremedyIhaveproposedbytheacceptedcanonsoftaxation.Indoingso,manyincidentalbearingsmaybeseenthatotherwisemightescapenotice.

[BacktoTableofContents]

ChapterIIIThePropositionTriedbytheCanonsofTaxation

Thebesttaxbywhichpublicrevenuescanberaisedisevidentlythatwhichwillclosestconformtothefollowingconditions:

1.Thatitbearaslightlyaspossibleuponproduction—soasleasttochecktheincreaseofthegeneralfundfromwhichtaxesmustbepaidandthecommunitymaintained.2.Thatitbeeasilyandcheaplycollected,andfallasdirectlyasmaybeupontheultimatepayers—soastotakefromthepeopleaslittleaspossibleinadditiontowhatityieldsthegovernment.3.Thatitbecertain—soastogivetheleastopportunityfortyrannyorcorruptiononthepartofofficials,andtheleasttemptationtolaw-breakingandevasiononthepartofthetaxpayers.4.Thatitbearequally—soastogivenocitizenanadvantageorputanyatadisadvantage,ascomparedwithothers.

Letusconsiderwhatformoftaxationbestaccordswiththeseconditions.Whateveritbe,thatevidentlywillbethebestmodeinwhichthepublicrevenuescanberaised.

I.

TheEffectofTaxesuponProduction

Alltaxesmustevidentlycomefromtheproduceoflandandlabor,sincethereisnoothersourceofwealththantheunionofhumanexertionwiththematerialandforcesofnature.Butthemannerinwhichequalamountsoftaxationmaybeimposedmayverydifferentlyaffecttheproductionofwealth.Taxationwhichlessenstherewardoftheproducernecessarilylessenstheincentivetoproduction;taxationwhichisconditionedupontheactofproduction,ortheuseofanyofthethreefactorsofproduction,necessarilydiscouragesproduction.Thustaxationwhichdiminishestheearningsofthelaborerorthereturnsofthecapitalisttendstorendertheonelessindustriousandintelligent,theotherlessdisposedtosaveandinvest.Taxationwhichfallsupontheprocessesofproductioninterposesanartificialobstacletothecreationofwealth.Taxationwhichfallsuponlaborasitisexerted,wealthasitisusedascapital,landasitiscultivated,willmanifestlytendtodiscourageproductionmuchmorepowerfullythantaxationtothesameamountlevieduponlaborers,whethertheyworkorplay,uponwealthwhetherusedproductivelyorunproductively,oruponlandwhethercultivatedorleftwaste.

Themodeoftaxationis,infact,quiteasimportantastheamount.Asasmallburdenbadlyplacedmaydistressahorsethatcouldcarrywitheaseamuchlargeroneproperlyadjusted,soapeoplemaybeimpoverishedandtheirpowerofproducingwealthdestroyedbytaxation,which,ifleviedinanotherway,couldbebornewithease.Ataxondatetrees,imposedbyMohammedAli,causedtheEgyptianfellahstocutdowntheirtrees;butataxoftwicetheamountimposedonthelandproducednosuchresult.Thetaxoftenpercent.onallsales,imposedbytheDukeofAlvaintheNetherlands,would,haditbeenmaintained,haveallbutstoppedexchangewhileyieldingbutlittlerevenue.

Butweneednotgoabroadforillustrations.TheproductionofwealthintheUnitedStatesislargelylessenedbytaxationwhichbearsuponitsprocesses.Ship-building,inwhichweexcelled,hasbeenallbut

destroyed,sofarastheforeigntradeisconcerned,andmanybranchesofproductionandexchangeseriouslycrippled,bytaxeswhichdivertindustryfrommoretolessproductiveforms.

Thischeckingofproductionisingreaterorlessdegreecharacteristicofmostofthetaxesbywhichtherevenuesofmoderngovernmentsareraised.Alltaxesuponmanufactures,alltaxesuponcommerce,alltaxesuponcapital,alltaxesuponimprovements,areofthiskind.TheirtendencyisthesameasthatofMohammedAli’staxondatetrees,thoughtheireffectmaynotbesoclearlyseen.

Allsuchtaxeshaveatendencytoreducetheproductionofwealth,andshould,therefore,neverberesortedtowhenitispossibletoraisemoneybytaxeswhichdonotcheckproduction.Thisbecomespossibleassocietydevelopsandwealthaccumulates.Taxeswhichfalluponostentationwouldsimplyturnintothepublictreasurywhatotherwisewouldbewastedinvainshowforthesakeofshow;andtaxesuponwillsanddevisesoftherichwouldprobablyhavelittleeffectincheckingthedesireforaccumulation,which,afterithasfairlygotholdofaman,becomesablindpassion.Butthegreatclassoftaxesfromwhichrevenuemaybederivedwithoutinterferencewithproductionaretaxesuponmonopolies—fortheprofitofmonopolyisinitselfataxlevieduponproduction,andtotaxitissimplytodivertintothepubliccofferswhatproductionmustinanyeventpay.

Thereareamongusvarioussortsofmonopolies.Forinstance,therearethetemporarymonopoliescreatedbythepatentandcopyrightlaws.Theseitwouldbeextremelyunjustandunwisetotax,inasmuchastheyarebutrecognitionsoftherightoflabortoitsintangibleproductions,andconstitutearewardheldouttoinventionandauthorship.TherearealsotheonerousmonopoliesalludedtoinChap.IVofBookIII,whichresultfromtheaggregationofcapitalinbusinesseswhichareofthenatureofmonopolies.Butwhileitwouldbeextremelydifficult,ifnotaltogetherimpossible,tolevytaxesbygenerallawsothattheywouldfall

exclusivelyonthereturnsofsuchmonopolyandnotbecometaxesonproductionorexchange,itismuchbetterthatthesemonopoliesshouldbeabolished.Inlargeparttheyspringfromlegislativecommissionoromission,as,forinstance,theultimatereasonthatSanFranciscomerchantsarecompelledtopaymoreforgoodssentdirectfromNewYorktoSanFranciscobytheIsthmusroutethanitcoststoshipthemfromNewYorktoLiverpoolorSouthamptonandthencetoSanFrancisco,istobefoundinthe”protective“lawswhichmakeitsocostlytobuildAmericansteamersandwhichforbidforeignsteamerstocarrygoodsbetweenAmericanports.ThereasonthatresidentsofNevadaarecompelledtopayasmuchfreightfromtheEastasthoughtheirgoodswerecarriedtoSanFranciscoandbackagain,isthattheauthoritywhichpreventsextortiononthepartofahackdriverisnotexercisedinrespecttoarailroadcompany.AnditmaybesaidgenerallythatbusinesseswhichareintheirnaturemonopoliesareproperlypartofthefunctionsoftheState,andshouldbeassumedbytheState.ThereisthesamereasonwhyGovernmentshouldcarrytelegraphicmessagesasthatitshouldcarryletters;thatrailroadsshouldbelongtothepublicasthatcommonroadsshould.

Butallothermonopoliesaretrivialinextentascomparedwiththemonopolyofland.Andthevalueoflandexpressingamonopoly,pureandsimple,isineveryrespectfittedfortaxation.Thatistosay,whilethevalueofarailroadortelegraphline,thepriceofgasorofapatentmedicine,mayexpressthepriceofmonopoly,italsoexpressestheexertionoflaborandcapital;butthevalueofland,oreconomicrent,aswehaveseen,isinnopartmadeupfromthesefactors,andexpressesnothingbuttheadvantageofappropriation.Taxeslevieduponthevalueoflandcannotcheckproductionintheslightestdegree,untiltheyexceedrent,orthevalueoflandtakenannuallyforunliketaxesuponcommodities,orexchange,orcapital,oranyofthetoolsorprocessesofproduction,theydonotbearuponproduction.Thevalueoflanddoesnotexpresstherewardofproduction,asdoesthevalueofcrops,ofcattle,ofbuildings,oranyofthethingswhicharestyledpersonalpropertyand

improvements.Itexpressestheexchangevalueofmonopoly.Itisnotinanycasethecreationoftheindividualwhoownstheland;itiscreatedbythegrowthofthecommunity.Hencethecommunitycantakeitallwithoutinanywaylesseningtheincentivetoimprovementorintheslightestdegreelesseningtheproductionofwealth.TaxesmaybeimposeduponthevalueoflanduntilallrentistakenbytheState,withoutreducingthewagesoflaborortherewardofcapitaloneiota;withoutincreasingthepriceofasinglecommodity,ormakingproductioninanywaymoredifficult.

Butmorethanthis.Taxesonthevalueoflandnotonlydonotcheckproductionasdomostothertaxes,buttheytendtoincreaseproduction,bydestroyingspeculativerent.Howspeculativerentchecksproductionmaybeseennotonlyinthevaluablelandwithheldfromuse,butintheparoxysmsofindustrialdepressionwhich,originatinginthespeculativeadvanceinlandvalues,propagatethemselvesoverthewholecivilizedworld,everywhereparalyzingindustry,andcausingmorewasteandprobablymoresufferingthanwouldageneralwar.Taxationwhichwouldtakerentforpublicuseswouldpreventallthis;whileiflandweretaxedtoanythingnearitsrentalvalue,noonecouldaffordtoholdlandthathewasnotusing,and,consequently,landnotinusewouldbethrownopentothosewhowoulduseit.Settlementwouldbecloser,and,consequently,laborandcapitalwouldbeenabledtoproducemuchmorewiththesameexertion.Thedoginthemangerwho,inthiscountryespecially,sowastesproductivepower,wouldbechokedoff.

Thereisyetanevenmoreimportantwaybywhich,throughitseffectupondistribution,thetakingofrenttopublicusesbytaxationwouldstimulatetheproductionofwealth.Butreferencetothatmaybereserved.Itissufficientlyevidentthatwithregardtoproduction,thetaxuponthevalueoflandisthebesttaxthatcanbeimposed.Taxmanufactures,andtheeffectistocheckmanufacturing;taximprovements,andtheeffectistolessenimprovement;taxcommerce,andtheeffectistopreventexchange;taxcapital,andtheeffectistodriveitaway.Butthewhole

valueoflandmaybetakenintaxation,andtheonlyeffectwillbetostimulateindustry,toopennewopportunitiestocapital,andtoincreasetheproductionofwealth.

II.

AstoEaseandCheapnessofCollection

With,perhaps,theexceptionofcertainlicensesandstampduties,whichmaybemadealmosttocollectthemselves,butwhichcanbereliedonforonlyatrivialamountofrevenue,ataxuponlandvaluescan,ofalltaxes,bemosteasilyandcheaplycollected.Forlandcannotbehiddenorcarriedoff;itsvaluecanbereadilyascertained,andtheassessmentoncemade,nothingbutareceiverisrequiredforcollection.

Andasunderallfiscalsystemssomepartofthepublicrevenuesiscollectedfromtaxesonland,andthemachineryforthatpurposealreadyexistsandcouldaswellbemadetocollectallasapart,thecostofcollectingtherevenuenowobtainedbyothertaxesmightbeentirelysavedbysubstitutingthetaxonlandvaluesforallothertaxes.Whatanenormoussavingmightthusbemadecanbeinferredfromthehordeofofficialsnowengagedincollectingthesetaxes.

Thissavingwouldlargelyreducethedifferencebetweenwhattaxationnowcoststhepeopleandwhatityields,butthesubstitutionofataxonlandvaluesforallothertaxeswouldoperatetoreducethisdifferenceinanevenmoreimportantway.

Ataxonlandvaluesdoesnotaddtoprices,andisthuspaiddirectlybythepersonsonwhomitfalls;whereas,alltaxesuponthingsofunfixedquantityincreaseprices,andinthecourseofexchangeareshiftedfromsellertobuyer,increasingastheygo.Ifweimposeataxuponmoneyloaned,ashasbeenoftenattempted,thelenderwillchargethetaxtotheborrower,andtheborrowermustpayitornotobtaintheloan.Ifthe

borrowerusesitinhisbusiness,heinhisturnmustgetbackthetaxfromhiscustomers,orhisbusinessbecomesunprofitable.Ifweimposeataxuponbuildings,theusersofbuildingsmustfinallypayit,fortheerectionofbuildingswillceaseuntilbuildingrentsbecomehighenoughtopaytheregularprofitandthetaxbesides.Ifweimposeataxuponmanufacturesorimportedgoods,themanufacturerorimporterwillchargeitinahigherpricetothejobber,thejobbertotheretailer,andtheretailertotheconsumer.Now,theconsumer,onwhomthetaxthusultimatelyfalls,mustnotonlypaytheamountofthetax,butalsoaprofitonthisamounttoeveryonewhohasthusadvancedit—forprofitonthecapitalhehasadvancedinpayingtaxesisasmuchrequiredbyeachdealerasprofitonthecapitalhehasadvancedinpayingforgoods.Manilacigarscost,whenboughtoftheimporterinSanFrancisco,670athousand,ofwhich614isthecostofthecigarslaiddowninthisportand656isthecustomsduty.Butthedealerwhopurchasesthesecigarstosellagainmustchargeaprofit,noton614,therealcostofthecigars,buton670,thecostofthecigarsplustheduty.Inthiswayalltaxeswhichaddtopricesareshiftedfromhandtohand,increasingastheygo,untiltheyultimatelyrestuponconsumers,whothuspaymuchmorethanisreceivedbythegovernment.Now,thewaytaxesraisepricesisbyincreasingthecostofproduction,andcheckingsupply.Butlandisnotathingofhumanproduction,andtaxesuponrentcannotchecksupply.Therefore,thoughataxonrentcompelsthelandownerstopaymore,itgivesthemnopowertoobtainmorefortheuseoftheirland,asitinnowaytendstoreducethesupplyofland.Onthecontrary,bycompellingthosewhoholdlandonspeculationtosellorletforwhattheycanget,ataxonlandvaluestendstoincreasethecompetitionbetweenowners,andthustoreducethepriceofland.

Thusinallrespectsataxuponlandvaluesisthecheapesttaxbywhichalargerevenuecanberaisedgivingtothegovernmentthelargestnetrevenueinproportiontotheamounttakenfromthepeople.

III.

AstoCertainty

Certaintyisanimportantelementintaxation,forjustasthecollectionofataxdependsuponthediligenceandfaithfulnessofthecollectorsandthepublicspiritandhonestyofthosewhoaretopayit,willopportunitiesfortyrannyandcorruptionbeopenedontheoneside,andforevasionsandfraudsontheother.

Themethodsbywhichthebulkofourrevenuesarecollectedarecondemnedonthisground,ifonnoother.ThegrosscorruptionsandfraudoccasionedintheUnitedStatesbythewhiskyandtobaccotaxesarewellknown;theconstantundervaluationsoftheCustomHouse,theridiculousuntruthfulnessofincometaxreturns,andtheabsoluteimpossibilityofgettinganythinglikeajustvaluationofpersonalproperty,aremattersofnotoriety.Themateriallosswhichsuchtaxesinflict—theitemofcostwhichthisuncertaintyaddstotheamountpaidbythepeoplebutnotreceivedbythegovernment—isverygreat.When,inthedaysoftheprotectivesystemofEngland,hercoastswerelinedwithanarmyofmenendeavoringtopreventsmuggling,andanotherarmyofmenwereengagedinevadingthem,itisevidentthatthemaintenanceofbotharmieshadtocomefromtheproduceoflaborandcapital;thattheexpensesandprofitsofthesmugglers,aswellasthepayandbribesoftheCustomHouseofficers,constitutedataxupontheindustryofthenation,inadditiontowhatwasreceivedbythegovernment.Andso,alldouceurstoassessors;allbribestocustomsofficials;allmoneysexpendedinelectingpliableofficersorinprocuringactsordecisionswhichavoidtaxation;allthecostlymodesofbringingingoodssoastoevadeduties,andofmanufacturingsoastoevadeimposts;allmoieties,andexpensesofdetectivesandspies;allexpensesoflegalproceedingsandpunishments,notonlytothegovernment,buttothoseprosecuted,aresomuchwhichthesetaxestakefromthegeneralfundofwealth,withoutaddingtotherevenue.

Yetthisistheleastpartofthecost.Taxeswhichlacktheelementof

certaintytellmostfearfullyuponmorals.Ourrevenuelawsasabodymightwellbeentitled,“Actstopromotethecorruptionofpublicofficials,tosuppresshonestyandencouragefraud,tosetapremiumuponperjuryandthesubornationofperjury,andtodivorcetheideaoflawfromtheideaofjustice.”Thisistheirtruecharacter,andtheysucceedadmirably.ACustomHouseoathisaby-word;ourassessorsregularlysweartoassessallpropertyatitsfull,true,cashvalue,andhabituallydonothingofthekind;menwhopridethemselvesontheirpersonalandcommercialhonorbribeofficialsandmakefalsereturns;andthedemoralizingspectacleisconstantlypresentedofthesamecourttryingamurdereronedayandavendorofunstampedmatchesthenext!

SouncertainandsodemoralizingarethesemodesoftaxationthattheNewYorkCommission,composedofDavidA.Wells,EdwinDodgeandGeorgeW.Cuyler,whoinvestigatedthesubjectoftaxationinthatState,proposedtosubstituteformostofthetaxesnowlevied,otherthanthatonrealestate,anarbitrarytaxoneachindividual,estimatedontherentalvalueofthepremisesbeoccupied.

Butthereisnonecessityofresortingtoanyarbitraryassessment.Thetaxonlandvalues,whichistheleastarbitraryoftaxes,possessesinthehighestdegreetheelementofcertainty.Itmaybeassessedandcollectedwithadefinitenessthatpartakesoftheimmovableandunconcealablecharacterofthelanditself.Taxesleviedonlandmaybecollectedtothelastcent,andthoughtheassessmentoflandisnowoftenunequal,yettheassessmentofpersonalpropertyisfarmoreunequal,andtheseinequalitiesintheassessmentoflandlargelyarisefromthetaxationofimprovementswithland,andfromthedemoralizationthat,springingfromthecausestowhichIhavereferred,affectsthewholeschemeoftaxation.Werealltaxesplaceduponlandvalues,irrespectiveofimprovements,theschemeoftaxationwouldbesosimpleandclear,andpublicattentionwouldbesodirectedtoit,thatthevaluationoftaxationcouldandwouldbemadewiththesamecertaintythatarealestateagentcandeterminethepriceasellercangetforalot.

IV.

AstoEquality

AdamSmith’scanonis,that“Thesubjectsofeverystateoughttocontributetowardthesupportofthegovernmentasnearlyaspossibleinproportiontotheirrespectiveabilities;thatis,inproportiontotherevenuewhichtheyrespectivelyenjoyundertheprotectionofthestate.”Everytax,hegoesontosay,whichfallsonlyuponrent,oronlyuponwages,oronlyuponinterest,isnecessarilyunequal.Inaccordancewiththisisthecommonideawhichoursystemsoftaxingeverythingvainlyattempttocarryout—thateveryoneshouldpaytaxesinproportiontohismeans,orinproportiontohisincome.

But,waivingalltheinsuperablepracticaldifficultiesinthewayoftaxingeveryoneaccordingtohismeans,itisevidentthatjusticecannotbethusattained.

Here,forinstance,aretwomenofequalmeans,orequalincomes,onehavingalargefamily,theotherhavingnoonetosupportbuthimself.Uponthesetwomenindirecttaxesfallveryunequally,astheonecannotavoidthetaxesonthefood,clothing,etc.,consumedbyhisfamily,whiletheotherneedpayonlyuponthenecessariesconsumedbyhimself.But,supposingtaxeslevieddirectly,sothateachpaysthesameamount.Stillthereisinjustice.Theincomeoftheoneischargedwiththesupportofsix,eight,ortenpersons;theincomeoftheotherwiththatofbutasingleperson.AndunlesstheMalthusiandoctrinebecarriedtotheextentofregardingtherearingofanewcitizenasaninjurytothestate,hereisagrossinjustice.

Butitmaybesaidthatthisisadifficultywhichcannotbegotover;thatitisNatureherselfthatbringshumanbeingshelplessintotheworldanddevolvestheirsupportupontheparents,providingincompensationthereforherownsweetandgreatrewards.Verywell,then,letusturnto

Nature,andreadthemandatesofjusticeinherlaw.

Naturegivestolabor;andtolaboralone.InaveryGardenofEdenamanwouldstarvebutforhumanexertion.Now,herearetwomenofequalincomes—thatoftheonederivedfromtheexertionofhislabor,thatoftheotherfromtherentofland.Isitjustthattheyshouldequallycontributetotheexpensesofthestate?Evidentlynot.Theincomeoftheonerepresentswealthhecreatesandaddstothegeneralwealthofthestate;theincomeoftheotherrepresentsmerelywealththathetakesfromthegeneralstock,returningnothing.Therightoftheonetotheenjoymentofhisincomerestsonthewarrantofnature,whichreturnswealthtolabor;therightoftheothertotheenjoymentofhisincomeisamerefictitiousright,thecreationofmunicipalregulation,whichisunknownandunrecognizedbynature.Thefatherwhoistoldthatfromhislaborhemustsupporthischildrenmustacquiesce,forsuchisthenaturaldecree;buthemayjustlydemandthatfromtheincomegainedbyhislabornotonepennyshallbetaken,solongasapennyremainsofincomeswhicharegainedbyamonopolyofthenaturalopportunitieswhichNatureoffersimpartiallytoall,andinwhichhischildrenhaveastheirbirthrightanequalshare.

AdamSmithspeaksofincomesas”enjoyedundertheprotectionofthestate;“andthisisthegrounduponwhichtheequaltaxationofallspeciesofpropertyiscommonlyinsistedupon—thatitisequallyprotectedbythestate.Thebasisofthisideaisevidentlythattheenjoymentofpropertyismadepossiblebythestate—thatthereisavaluecreatedandmaintainedbythecommunity,whichisjustlycalledupontomeetcommunityexpenses.Now,ofwhatvaluesisthistrue?Onlyofthevalueofland.Thisisavaluethatdoesnotariseuntilacommunityisformed,andthat,unlikeothervalues,growswiththegrowthofthecommunity.Itexistsonlyasthecommunityexists.Scatteragainthelargestcommunity,andland,nowsovaluable,wouldhavenovalueatall.Witheveryincreaseofpopulationthevalueoflandrises;witheverydecreaseItfalls.Thisistrueofnothingelsesaveofthingswhich,liketheownershipof

land,areintheirnaturemonopolies.

Thetaxuponlandvaluesis,therefore,themostjustandequalofalltaxes.Itfallsonlyuponthosewhoreceivefromsocietyapeculiarandvaluablebenefit,andupontheminproportiontothebenefittheyreceive.Itisthetakingbythecommunity,fortheuseofthecommunity,ofthatvaluewhichisthecreationofthecommunity.Itistheapplicationofthecommonpropertytocommonuses.Whenallrentistakenbytaxationfortheneedsofthecommunity,thenwilltheequalityordainedbyNaturebeattained.Nocitizenwillhaveanadvantageoveranyothercitizensaveasisgivenbyhisindustry,skill,andintelligence;andeachwillobtainwhathefairlyearns.Then,butnottillthen,willlaborgetitsfullreward,andcapitalitsnaturalreturn.

Followingthehabitofconfoundingtheexclusiverightgrantedbyapatentandthatgrantedbyacopyrightasrecognitionsoftherightoflabortoitsintangibleproductions,IinthisfellintoerrorwhichIsubsequentlyacknowledgedandcorrectedintheStandardofJune23,1888.Thetwothingsarenotalike,butessentiallydifferent.Thecopyrightisnotarighttotheexclusiveuseofafact,anidea,oracombination,whichbythenaturallawofpropertyallarefreetouse;butonlytothelaborexpendedinthethingitself.Itdoesnotpreventanyonefromusingforhimselfthefacts,theknowledge,thelawsorcombinationsforasimilarproduction,butonlyfromusingtheidenticalformoftheparticularbookorotherproduction—theactuallaborwhichhasinshortbeenexpendedinproducingit.Itreststhereforeuponthenatural,moralrightofeachonetoenjoytheproductsofhisownexertion,andinvolvesnointerferencewiththesimilarrightofanyoneelsetodolikewise.

Thepatent,ontheotherhand,prohibitsanyonefromdoingasimilarthing,andinvolves,usuallyforaspecifiedtime,aninterferencewiththeequallibertyonwhichtherightofownershiprests.Thecopyrightisthereforeinaccordancewiththemorallaw—itgivestothemanwhohasexpendedtheintangiblelaborrequiredtowriteaparticularbookorpaint

apicturesecurityagainstthecopyingofthatidenticalthing.Thepatentisindefianceofthisnaturalright.Itprohibitsothersfromdoingwhathasbeenalreadyattempted.EveryonehasamoralrighttothinkwhatIthink,ortoperceivewhatIperceive,ortodowhatIdo—nomatterwhetherbegetsthehintfrommeorindependentlyofme.Discoverycangivenorightofownership,forwhateverisdiscoveredmusthavebeenalreadyheretobediscovered.Ifamanmakeawheelbarrow,orabook,orapicture,hehasamoralrighttothatparticularwheelbarrow,orbook,orpicture,butnorighttoaskthatothersbepreventedfrommakingsimilarthings.Suchaprohibition,thoughgivenforthepurposeofstimulatingdiscoveryandinvention,reallyinthelongrunoperatesasacheckuponthem.

[BacktoTableofContents]

ChapterIVIndorsementsandObjections

Thegroundsfromwhichwehavedrawntheconclusionthatthetaxonlandvaluesorrentisthebestmethodofraisingpublicrevenueshavebeenadmittedexpresslyortacitlybyalleconomistsofstanding,sincethedeterminationofthenatureandlawofrent.

Ricardosays(Chap.X):”Ataxonrentwouldfallwhollyonlandlords,andcouldnotbeshiftedtoanyclassofconsumers,“forit”wouldleaveunalteredthedifferencebetweentheproduceobtainedfromtheleastproductivelandincultivationandthatobtainedfromlandofeveryotherquality.BBBAtaxonrentwouldnotdiscouragethecultivationoffreshland,forsuchlandpaysnorentandwouldbeuntaxed.“

McCulloch(NoteXXIVto”WealthofNations“)declaresthat”inapracticalpointofviewtaxesontherentoflandareamongthemostunjustandimpoliticthatcanbeimagined,“buthemakesthisassertionsolelyonthegroundofhisassumptionthatitispracticallyimpossibletodistinguishintaxationbetweenthesumpaidfortheuseofthesoilandthatpaidonaccountofthecapitalexpendeduponit.But,supposingthatthisseparationcouldbeeffected,headmitsthatthesumpaidtolandlordsfortheuseofthenaturalpowersofthesoilmightbeentirelysweptawaybyataxwithouttheirhavingitintheirpowertothrowanyportionoftheburdenuponanyoneelse,andwithoutaffectingthepriceofproduce.

JohnStuartMillnotonlyadmitsallthis,butexpresslydeclarestheexpediencyandjusticeofapeculiartaxonrent,askingwhatrightthelandlordshavetotheaccessionofrichesthatcomestothemfromthegeneralprogressofsocietywithoutwork,risk,oreconomizingontheirpart,andalthoughheexpresslydisapprovesofinterferingwiththeirclaimtothepresentvalueofland,heproposestotakethewholefuture

increaseasbelongingtosocietybynaturalright.

Mrs.Fawcett,inthelittlecompendiumofthewritingsofherhusband,entitled”PoliticalEconomyforBeginners,“says:”Thelandtax,whethersmallorgreatinamount,partakesofthenatureofarentpaidbytheowneroflandtothestate.InagreatpartofIndiathelandisownedbythegovernmentandthereforethelandtaxisrentpaiddirecttothestate.Theeconomicperfectionofthissystemoftenuremaybereadilyperceived.“

Infact,thatrentshould,bothongroundsofexpediencyandjustice,bethepeculiarsubjectoftaxation,isinvolvedintheaccepteddoctrineofrent,andmaybefoundinembryointheworksofalleconomistswhohaveacceptedthelawofRicardo.Thattheseprincipleshavenotbeenpushedtotheirnecessaryconclusions,asIhavepushedthem,evidentlyarisesfromtheindispositiontoendangeroroffendtheenormousinterestinvolvedinprivateownershipinland,andfromthefalsetheoriesinregardtowagesandthecauseofpovertywhichhavedominatedeconomicthought.

Buttherehasbeenaschoolofeconomistswhoplainlyperceived,whatiscleartothenaturalperceptionsofmenwhenuninfluencedbyhabit—thattherevenuesofthecommonproperty,land,oughttobeappropriatedtothecommonservice.TheFrenchEconomistsofthelastcentury,headedbyQuesnayandTurgot,proposedjustwhatIhaveproposed,thatalltaxationshouldbeabolishedsaveataxuponthevalueofland.AsIamacquaintedwiththedoctrinesofQuesnayandhisdisciplesonlyatsecondhandthroughthemediumoftheEnglishwriters,Iamunabletosayhowfarhispeculiarideasastoagriculturebeingtheonlyproductiveavocation,etc.,areerroneousapprehensions,ormerepeculiaritiesofterminology.ButofthisIamcertainfromthepropositioninwhichhistheoryculminated—thathesawthefundamentalrelationbetweenlandandlaborwhichhassincebeenlostsightof,andthathearrivedatpracticaltruth,though,itmaybe,throughacourseofdefectivelyexpressedreasoning.Thecauseswhichleaveinthehandsofthelandlord

a”producenet“werebythePhysiocratsnobetterexplainedthanthesuctionofapumpwasexplainedbytheassumptionthatnatureabhorsavacuum,butthefactinitspracticalrelationstosocialeconomywasrecognized,andthebenefitwhichwouldresultfromtheperfectfreedomgiventoindustryandtradebyasubstitutionofataxonrentforalltheimpositionswhichhamperanddistorttheapplicationoflaborwasdoubtlessasclearlyseenbythemasitisbyme.OneofthethingsmosttoberegrettedabouttheFrenchRevolutionisthatitoverwhelmedtheideasoftheEconomists,justastheyweregainingstrengthamongthethinkingclasses,andwereapparentlyabouttoinfluencefiscallegislation.

WithoutknowinganythingofQuesnayorhisdoctrines,Ihavereachedthesamepracticalconclusionbyaroutewhichcannotbedisputed,andhavebaseditongroundswhichcannotbequestionedbytheacceptedpoliticaleconomy.

Theonlyobjectiontothetaxonrentorlandvalueswhichistobemetwithinstandardpolitico-economicworksisonewhichconcedesitsadvantages—foritis,thatfromthedifficultyofseparation,wemight,intaxingtherentofland,taxsomethingelse.McCulloch,forinstance,declarestaxesontherentoflandtobeimpoliticandunjustbecausethereturnreceivedforthenaturalandinherentpowersofthesoilcannotbeclearlydistinguishedfromthereturnreceivedfromimprovementsandmeliorations,whichmightthusbediscouraged.Macaulaysomewheresaysthatiftheadmissionoftheattractionofgravitationwereinimicaltoanyconsiderablepecuniaryinterest,therewouldnotbewantingargumentsagainstgravitation—atruthofwhichthisobjectionisanillustration.Foradmittingthatitisimpossibleinvariablytoseparatethevalueoflandfromthevalueofimprovements,isthisnecessityofcontinuingtotaxsomeimprovementsanyreasonwhyweshouldcontinuetotaxallimprovements?Ifitdiscourageproductiontotaxvalueswhichlaborandcapitalhaveintimatelycombinedwiththatofland,howmuchgreaterdiscouragementisinvolvedintaxingnotonlythese,butalltheclearlydistinguishablevalueswhichlaborandcapitalcreate?

But,asamatteroffact,thevalueoflandcanalwaysbereadilydistinguishedfromthevalueofimprovements.IncountriesliketheUnitedStatesthereismuchvaluablelandthathasneverbeenimproved;andinmanyoftheStatesthevalueofthelandandthevalueofimprovementsarehabituallyestimatedseparatelybytheassessors,thoughafterwardreunitedunderthetermrealestate.Norwheregroundhasbeenoccupiedfromimmemorialtimes,isthereanydifficultyingettingatthevalueofthebareland,forfrequentlythelandisownedbyonepersonandthebuildingsbyanother,andwhenafireoccursandimprovementsaredestroyed,aclearanddefinitevalueremainsintheland.Intheoldestcountryintheworldnodifficultywhatevercanattendtheseparation,ifallthatbeattemptedistoseparatethevalueoftheclearlydistinguishableimprovements,madewithinamoderateperiod,fromthevalueoftheland,shouldtheybedestroyed.This,manifestly,isallthatjusticeorpolicyrequires.Absoluteaccuracyisimpossibleinanysystem,andtoattempttoseparateallthatthehumanracehasdonefromwhatnatureoriginallyprovidedwouldbeasabsurdasimpracticable.AswampdrainedorabillterracedbytheRomansconstitutesnowasmuchapartofthenaturaladvantagesoftheBritishIslesasthoughtheworkhadbeendonebyearthquakeorglacier.Thefactthatafteracertainlapseoftimethevalueofsuchpermanentimprovementswouldbeconsideredashavinglapsedintothatoftheland,andwouldbetaxedaccordingly,couldhavenodeterrenteffectonsuchimprovements,forsuchworksarefrequentlyundertakenuponleasesforyears.Thefactis,thateachgenerationbuildsandimprovesforitself,andnotfortheremotefuture.Andthefurtherfactis,thateachgenerationisheir,notonlytothenaturalpowersoftheearth,buttoallthatremainsoftheworkofpastgenerations.

Anobjectionofadifferentkindmayhoweverbemade.Itmaybesaidthatwherepoliticalpowerisdiffused,itishighlydesirablethattaxationshouldfallnotononeclass,suchaslandowners,butonall;inorderthatallwhoexercisepoliticalpowermayfeelaproperinterestineconomicalgovernment.Taxationandrepresentation,itwillbesaid,cannotsafelybe

divorced.

Buthoweverdesirableitmaybetocombinewithpoliticalpowertheconsciousnessofpublicburdens,thepresentsystemcertainlydoesnotsecureit.Indirecttaxesarelargelyraisedfromthosewhopaylittleornothingconsciously.IntheUnitedStatestheclassisrapidlygrowingwhonotonlyfeelnointerestintaxation,butwhohavenoconcerningoodgovernment.Inourlargecitieselectionsareingreatmeasuredeterminednotbyconsiderationsofpublicinterest,butbysuchinfluencesasdeterminedelectionsinRomewhenthemasseshadceasedtocareforanythingbutbreadandthecircus.

Theeffectofsubstitutingforthemanifoldtaxesnowimposedasingletaxonthevalueoflandwouldhardlylessenthenumberofconscioustaxpayers,forthedivisionoflandnowheldonspeculationwouldmuchincreasethenumberoflandholders.Butitwouldsoequalizethedistributionofwealthastoraiseeventhepoorestabovethatconditionofabjectpovertyinwhichpublicconsiderationshavenoweight;whileitwouldatthesametimecutdownthoseovergrownfortuneswhichraisetheirpossessorsaboveconcerningovernment.Thedangerousclassespoliticallyaretheveryrichandverypoor.Itisnotthetaxesthatheisconsciousofpayingthatgivesamanastakeinthecountry,aninterestinitsgovernment;itistheconsciousnessoffeelingthatheisanintegralpartofthecommunity;thatitsprosperityishisprosperity,anditsdisgracehisshame.Letbutthecitizenfeelthis;lethimbesurroundedbyalltheinfluencesthatspringfromandclusterroundacomfortablehome,andthecommunitymayrelyuponhim,eventolimbortolife.Mendonotvotepatriotically,anymorethantheyfightpatriotically,becauseoftheirpaymentoftaxes.Whateverconducestothecomfortableandindependentmaterialconditionofthemasseswillbestfosterpublicspirit,willmaketheultimategoverningpowermoreintelligentandmorevirtuous.

Butitmaybeasked:Ifthetaxonlandvaluesissoadvantageousamode

ofraisingrevenue,howisitthatsomanyothertaxesareresortedtoinpreferencebyallgovernments?

Theanswerisobvious:Thetaxonlandvaluesistheonlytaxofanyimportancethatdoesnotdistributeitself.Itfallsupontheownersofland,andthereisnowayinwhichtheycanshifttheburdenuponanyoneelse.Hence,alargeandpowerfulclassaredirectlyinterestedinkeepingdownthetaxonlandvaluesandsubstituting,asameansforraisingtherequiredrevenue,taxesonotherthings,justasthelandownersofEngland,twohundredyearsago,succeededinestablishinganexcise,whichfellonallconsumers,fortheduesunderthefeudaltenures,whichfellonlyonthem.

Thereis,thus,adefiniteandpowerfulinterestopposedtothetaxationoflandvalues;buttotheothertaxesuponwhichmoderngovernmentssolargelyrelythereisnospecialopposition.Theingenuityofstatesmenhasbeenexercisedindevisingschemesoftaxationwhichdrainthewagesoflaborandtheearningsofcapitalasthevampirebatissaidtosuckthelifebloodofitsvictim.Nearlyallofthesetaxesareultimatelypaidbythatindefinablebeing,theconsumer;andhepaystheminawaywhichdoesnotcallhisattentiontothefactthatheispayingatax—paystheminsuchsmallamountsandinsuchinsidiousmodesthathedoesnotnoticeit,andisnotlikelytotakethetroubletoremonstrateeffectually.Thosewhopaythemoneydirectlytothetaxcollectorarenotonlynotinterestedinopposingataxwhichtheysoeasilyshiftfromtheirownshoulders,butareveryfrequentlyinterestedinitsimpositionandmaintenance,asareotherpowerfulinterestswhichprofit,orexpecttoprofit,bytheincreaseofpriceswhichsuchtaxesbringabout.

NearlyallofthemanifoldtaxesbywhichthepeopleoftheUnitedStatesarenowburdenedhavebeenimposedratherwithaviewtoprivateadvantagethantotheraisingofrevenue,andthegreatobstacletothesimplificationoftaxationistheseprivateinterests,whoserepresentativesclusterinthelobbywheneverareductionoftaxationisproposed,tosee

thatthetaxesbywhichtheyprofitarenotreduced.ThefasteningofaprotectivetariffupontheUnitedStateshasbeenduetotheseinfluences,andnottotheacceptanceofabsurdtheoriesofprotectionupontheirownmerits.Thelargerevenuewhichthecivilwarrenderednecessarywasthegoldenopportunityofthesespecialinterests,andtaxeswerepileduponeverypossiblething,notsomuchtoraiserevenueastoenableparticularclassestoparticipateintheadvantagesoftax-gatheringandtax-pocketing.And,sincethewar,theseinterestedpartieshaveconstitutedthegreatobstacletothereductionoftaxation;thosetaxeswhichcostthepeopleleasthaving,forthisreason,beenfoundeasiertoabolishthanthosetaxeswhichcostthepeoplemost.And,thus,evenpopulargovernments,whichhavefortheiravowedprinciplethesecuringofthegreatestgoodtothegreatestnumber,are,inamostimportantfunction,usedtosecureaquestionablegoodtoasmallnumber,attheexpenseofagreateviltothemany.

Licensetaxesaregenerallyfavoredbythoseonwhomtheyareimposed,astheytendtokeepothersfromenteringthebusiness;impostsuponmanufacturesarefrequentlygratefultolargemanufacturersforsimilarreasons,aswasseenintheoppositionofthedistillerstothereductionofthewhiskytax;dutiesonimportsnotonlytendtogivecertainproducersspecialadvantages,butaccruetothebenefitofimportersordealerswhohavelargestocksonhand;andso,inthecaseofallsuchtaxes,thereareparticularinterests,capableofreadyorganizationandconcertedaction,whichfavortheimpositionofthetax,while,inthecaseofataxuponthevalueofland,thereisasolidandsensitiveintereststeadilyandbitterlytoopposeit.

ButifoncethetruthwhichIamtryingtomakeclearisunderstoodbythemasses,itiseasytoseehowaunionofpoliticalforcesstrongenoughtocarryitintopracticebecomespossible.

BookIXEffectsoftheRemedy

ChapterI.OftheEffectUpontheProductionofWealthChapterII.OftheEffectUponDistributionandThenceUponProductionChapterIII.OftheEffectUponIndividualsandClassesChapterIV.OftheChangesThatWouldBeWroughtinSocialOrganizationandSocialLife

Icannotplayuponanystringedinstrument;butIcantellyouhowofalittlevillagetomakeagreatandgloriouscity.

—Themistocles.

Insteadofthethornshallcomeupthefirtree,andinsteadofthebriershallcomeupthemyrtletree.

Andtheyshallbuildhousesandinhabitthem;andtheyshallplantvineyardsandeatthefruitofthem.Theyshallnotbuildandanotherinhabit;theyshallnotplantandanothereat.

—Isaiah.

[BacktoTableofContents]

ChapterIOftheEffectUpontheProductionofWealth

TheelderMirabeau,wearetold,rankedthepropositionofQuesnay,tosubstituteonesingletaxonrent(theimpôtunique)forallothertaxes,asadiscoveryequalinutilitytotheinventionofwritingorthesubstitutionoftheuseofmoneyforbarter.

Towhomsoeverwillthinkoverthematter,thissayingwillappearanevidenceofpenetrationratherthanofextravagance.Theadvantageswhichwouldbegainedbysubstitutingforthenumeroustaxesbywhichthepublicrevenuesarenowraised,asingletaxlevieduponthevalueofland,willappearmoreandmoreimportantthemoretheyareconsidered.Thisisthesecretwhichwouldtransformthelittlevillageintothegreatcity.Withalltheburdensremovedwhichnowoppressindustryandhamperexchange,theproductionofwealthwouldgoonwitharapiditynowundreamedof.This,initsturn,wouldleadtoanincreaseinthevalueofland—anewsurpluswhichsocietymighttakeforgeneralpurposes.Andreleasedfromthedifficultieswhichattendthecollectionofrevenueinawaythatbegetscorruptionandrenderslegislationthetoolofspecialinterests,societycouldassumefunctionswhichtheincreasingcomplexityoflifemakesitdesirabletoassume,butwhichtheprospectofpoliticaldemoralizationunderthepresentsystemnowleadsthoughtfulmentoshrinkfrom.

Considertheeffectupontheproductionofwealth.

Toabolishthetaxationwhich,actingandreacting,nowhamperseverywheelofexchangeandpressesuponeveryformofindustry,wouldbelikeremovinganimmenseweightfromapowerfulspring.Imbuedwithfreshenergy,productionwouldstartintonewlife,andtradewouldreceiveastimuluswhichwouldbefelttotheremotestarteries.The

presentmethodoftaxationoperatesuponexchangelikeartificialdesertsandmountains;itcostsmoretogetgoodsthroughacustomhousethanitdoestocarrythemaroundtheworld.Itoperatesuponenergy,andindustry,andskill,andthrift,likeafineuponthosequalities.IfIhaveworkedharderandbuiltmyselfagoodhousewhileyouhavebeencontentedtoliveinahovel,thetax-gatherernowcomesannuallytomakemepayapenaltyformyenergyandindustry,bytaxingmemorethanyou.IfIhavesavedwhileyouwasted,Iammulct,whileyouareexempt.Ifamanbuildashipwemakehimpayforhistemerity,asthoughhehaddoneaninjurytothestate;ifarailroadbeopened,downcomesthetax-collectoruponit,asthoughitwereapublicnuisance;ifamanufactorybeerectedwelevyuponitanannualsumwhichwouldgofartowardmakingahandsomeprofit.Wesaywewantcapital,butifanyoneaccumulateit,orbringitamongus,wechargehimforitasthoughweweregivinghimaprivilege.Wepunishwithataxthemanwhocoversbarrenfieldswithripeninggrain,wefinehimwhoputsupmachinery,andhimwhodrainsaswamp.Howheavilythesetaxesburdenproductiononlythoserealizewhohaveattemptedtofollowoursystemoftaxationthroughitsramifications,for,asIhavebeforesaid,theheaviestpartoftaxationisthatwhichfallsinincreasedprices.ButmanifestlythesetaxesareintheirnatureakintotheEgyptianPasha’staxupondate-trees.Iftheydonotcausethetreestobecutdown,theyatleastdiscouragetheplanting.

Toabolishthesetaxeswouldbetoliftthewholeenormousweightoftaxationfromproductiveindustry.Theneedleoftheseamstressandthegreatmanufactory;thecart-horseandthelocomotive;thefishingboatandthesteamship;thefarmer’splowandthemerchant’sstock,wouldbealikeuntaxed.Allwouldbefreetomakeortosave,tobuyortosell,unfinedbytaxes,un-annoyedbythetax-gatherer.Insteadofsayingtotheproducer,asitdoesnow,”Themoreyouaddtothegeneralwealththemoreshallyoubetaxed!“thestatewouldsaytotheproducer,”Beasindustrious,asthrifty,asenterprisingasyouchoose,youshallhaveyourfullreward!Youshallnotbefinedformakingtwobladesofgrassgrowwhereonegrewbefore;youshallnotbetaxedforaddingtotheaggregate

wealth.“

Andwillnotthecommunitygainbythusrefusingtokillthegoosethatlaysthegoldeneggs;bythusrefrainingfrommuzzlingtheoxthattreadethoutthecorn;bythusleavingtoindustry,andthrift,andskill,theirnaturalreward,fullandunimpaired?Forthereistothecommunityalsoanaturalreward.Thelawofsocietyis,eachforall,aswellasallforeach.Noonecankeeptohimselfthegoodhemaydo,anymorethanhecankeepthebad.Everyproductiveenterprise,besidesitsreturntothosewhoundertakeit,yieldscollateraladvantagestoothers.Ifamanplantafruittree,hisgainisthathegathersthefruitinitstimeandseason.Butinadditiontohisgain,thereisagaintothewholecommunity.Othersthantheownerarebenefitedbytheincreasedsupplyoffruit;thebirdswhichitsheltersflyfarandwide;therainwhichithelpstoattractfallsnotaloneonhisfield;and,eventotheeyewhichrestsuponitfromadistance,itbringsasenseofbeauty.Andsowitheverythingelse.Thebuildingofahouse,afactory,aship,orarailroad,benefitsothersbesidesthosewhogetthedirectprofits.Naturelaughsatamiser.Heislikethesquirrelwhoburieshisnutsandrefrainsfromdiggingthemupagain.Lo!theysproutandgrowintotrees.Infinelinen,steepedincostlyspices,themummyislaidaway.Thousandsandthousandsofyearsthereafter,theBedouincookshisfoodbyafireofitsencasings,itgeneratesthesteambywhichthetraveleriswhirledonhisway,oritpassesintofar-offlandstogratifythecuriosityofanotherrace.Thebeefillsthehollowtreewithhoney,andalongcomesthebearortheman.

Wellmaythecommunityleavetotheindividualproducerallthatpromptshimtoexertion;wellmayitletthelaborerhavethefullrewardofhislabor,andthecapitalistthefullreturnofhiscapital.Forthemorethatlaborandcapitalproduce,thegreatergrowsthecommonwealthinwhichallmayshare.Andinthevalueorrentoflandisthisgeneralgainexpressedinadefiniteandconcreteform.Hereisafundwhichthestatemaytakewhileleavingtolaborandcapitaltheirfullreward.Withincreasedactivityofproductionthiswouldcommensuratelyincrease.

Andtoshifttheburdenoftaxationfromproductionandexchangetothevalueorrentoflandwouldnotmerelybetogivenewstimulustotheproductionofwealth;itwouldbetoopennewopportunities.Forunderthissystemnoonewouldcaretoholdlandunlesstouseit,andlandnowwithheldfromusewouldeverywherebethrownopentoimprovement.

Thesellingpriceoflandwouldfall;landspeculationwouldreceiveitsdeathblow;landmonopolizationwouldnolongerpay.Millionsandmillionsofacresfromwhichsettlersarenowshutoutbyhighpriceswouldbeabandonedbytheirpresentownersorsoldtosettlersuponnominalterms.Andthisnotmerelyonthefrontiers,butwithinwhatarenowconsideredwellsettleddistricts.WithinahundredmilesofSanFranciscowouldbethusthrownopenlandenoughtosupport,evenwithpresentmodesofcultivation,anagriculturalpopulationequaltothatnowscatteredfromtheOregonboundarytotheMexicanline—adistanceof800miles.Inthesamedegreewouldthisbetrueofmostofthewesternstates,andinagreatdegreeoftheoldereasternstates,foreveninNewYorkandPennsylvaniaispopulationyetsparseascomparedwiththecapacityoftheland.AndevenindenselypopulatedEnglandwouldsuchapolicythrowopentocultivationmanyhundredsofthousandsofacresnowheldasprivateparks,deerpreserves,andshootinggrounds.

Forthissimpledeviceofplacingalltaxesonthevalueoflandwouldbeineffectputtingupthelandatauctiontowhosoeverwouldpaythehighestrenttothestate.Thedemandforlandfixesitsvalue,andhence,iftaxeswereplacedsoasverynearlytoconsumethatvalue,themanwhowishedtoholdlandwithoutusingitwouldhavetopayverynearlywhatitwouldbeworthtoanyonewhowantedtouseit.

Anditmustberememberedthatthiswouldapply,notmerelytoagriculturalland,buttoallland.Minerallandwouldbethrownopentouse,justasagriculturalland;andintheheartofacitynoonecouldaffordtokeeplandfromitsmostprofitableuse,orontheoutskirtstodemandmoreforitthantheusetowhichitcouldatthetimebeputwould

warrant.Everywherethatlandhadattainedavalue,taxation,insteadofoperating,asnow,asafineuponimprovement,wouldoperatetoforceimprovement.Whoeverplantedanorchard,orsowedafield,orbuiltahouse,orerectedamanufactory,nomatterhowcostly,wouldhavenomoretopayintaxesthanifhekeptsomuchlandidle.Themonopolistofagriculturallandwouldbetaxedasmuchasthoughhislandwerecoveredwithhousesandbarns,withcropsandwithstock.Theownerofavacantcitylotwouldhavetopayasmuchfortheprivilegeofkeepingotherpeopleoffofituntilhewantedtouseit,ashisneighborwhohasafinehouseuponhislot.Itwouldcostasmuchtokeeparowoftumble-downshantiesuponvaluablelandasthoughitwerecoveredwithagrandhotelorapileofgreatwarehousesfilledwithcostlygoods.

Thus,thebonusthatwhereverlaborismostproductivemustnowbepaidbeforelaborcanbeexertedwoulddisappear.Thefarmerwouldnothavetopayouthalfhismeans,ormortgagehislaborforyears,inordertoobtainlandtocultivate;thebuilderofacityhomesteadwouldnothavetolayoutasmuchforasmalllotasforthehouseheputsuponit;thecompanythatproposedtoerectamanufactorywouldnothavetoexpendagreatpartofitscapitalforasite.Andwhatwouldbepaidfromyeartoyeartothestatewouldbeinlieuofallthetaxesnowlevieduponimprovements,machinery,andstock.

Considertheeffectofsuchachangeuponthelabormarket.Competitionwouldnolongerbeone-sided,asnow.Insteadoflaborerscompetingwitheachotherforemployment,andintheircompetitioncuttingdownwagestothepointofbaresubsistence,employerswouldeverywherebecompetingforlaborers,andwageswouldrisetothefairearningsoflabor.Forintothelabormarketwouldhaveenteredthegreatestofallcompetitorsfortheemploymentoflabor,acompetitorwhosedemandcannotbesatisfieduntilwantissatisfied—thedemandoflaboritself.Theemployersoflaborwouldnothavemerelytobidagainstotheremployers,allfeelingthestimulusofgreatertradeandincreasedprofits,butagainsttheabilityoflaborerstobecometheirownemployersupon

thenaturalopportunitiesfreelyopenedtothembythetaxwhichpreventedmonopolization.

Withnaturalopportunitiesthusfreetolabor;withcapitalandimprovementsexemptfromtax,andexchangereleasedfromrestrictions,thespectacleofwillingmenunabletoturntheirlaborintothethingstheyaresufferingforwouldbecomeimpossible;therecurringparoxysmswhichparalyzeindustrywouldcease;everywheelofproductionwouldbesetinmotion;demandwouldkeeppacewithsupply,andsupplywithdemand;tradewouldincreaseineverydirection,andwealthaugmentoneveryhand.

[BacktoTableofContents]

ChapterIIOftheEffectUponDistributionandThenceUponProduction

Butgreatastheythusappear,theadvantagesofatransferenceofallpublicburdenstoataxuponthevalueoflandcannotbefullyappreciateduntilweconsidertheeffectuponthedistributionofwealth.

Tracingoutthecauseoftheunequaldistributionofwealthwhichappearsinallcivilizedcountries,withaconstanttendencytogreaterandgreaterinequalityasmaterialprogressgoeson,wehavefounditinthefactthat,ascivilizationadvances,theownershipofland,nowinprivatehands,givesagreaterandgreaterpowerofappropriatingthewealthproducedbylaborandcapital.

Thus,torelievelaborandcapitalfromalltaxation,directandindirect,andtothrowtheburdenuponrent,wouldbe,asfarasitwent,tocounteractthistendencytoinequality,and,ifitwentsofarastotakeintaxationthewholeofrent,thecauseofinequalitywouldbetotallydestroyed.Rent,insteadofcausinginequality,asnow,wouldthenpromoteequality.Laborandcapitalwouldthenreceivethewholeproduce,minusthatportiontakenbythestateinthetaxationoflandvalues,which,beingappliedtopublicpurposes,wouldbeequallydistributedinpublicbenefits.

Thatistosay,thewealthproducedineverycommunitywouldbedividedintotwoportions.Onepartwouldbedistributedinwagesandinterestbetweenindividualproducers,accordingtotheparteachhadtakenintheworkofproduction;theotherpartwouldgotothecommunityasawhole,tobedistributedinpublicbenefitstoallitsmembers.Inthisallwouldshareequally—theweakwiththestrong,youngchildrenanddecrepitoldmen,themaimed,thehalt,andtheblind,aswellasthevigorous.And

justlyso—forwhileonepartrepresentstheresultofindividualeffortinproduction,theotherrepresentstheincreasedpowerwithwhichthecommunityasawholeaidstheindividual.

Thus,asmaterialprogresstendstoincreaserent,wererenttakenbythecommunityforcommonpurposestheverycausewhichnowtendstoproduceinequalityasmaterialprogressgoesonwouldthentendtoproducegreaterandgreaterequality.Fullytounderstandthiseffect,letusreverttoprinciplespreviouslyworkedout.

Wehaveseenthatwagesandinterestmusteverywherebefixedbytherentlineormarginofcultivation—thatistosay,bytherewardwhichlaborandcapitalcansecureonlandforwhichnorentispaid;thattheaggregateamountofwealth,whichtheaggregateoflaborandcapitalemployedinproductionwillreceive,willbetheamountofwealthproduced(orrather,whenweconsidertaxes,thenetamount),minuswhatistakenasrent.

Wehaveseenthatwithmaterialprogress,asitisatpresentgoingon,thereisatwofoldtendencytotheadvanceofrent.Botharetotheincreaseoftheproportionofthewealthproducedwhichgoesasrent,andtothedecreaseoftheproportionwhichgoesaswagesandinterest.Butthefirst,ornaturaltendency,whichresultsfromthelawsofsocialdevelopment,istotheincreaseofrentasaquantity,withoutthereductionofwagesandinterestasquantities,orevenwiththeirquantitativeincrease.Theothertendency,whichresultsfromtheunnaturalappropriationoflandtoprivateownership,istotheincreaseofrentasaquantitybythereductionofwagesandinterestasquantities.

Now,itisevidentthattotakerentintaxationforpublicpurposes,whichvirtuallyabolishesprivateownershipinland,wouldbetodestroythetendencytoanabsolutedecreaseinwagesandinterest,bydestroyingthespeculativemonopolizationoflandandthespeculativeincreaseinrent.Itwouldbeverylargelytoincreasewagesandinterest,bythrowingopen

naturalopportunitiesnowmonopolizedandreducingthepriceofland.Laborandcapitalwouldthusnotmerelygainwhatisnowtakenfromthemintaxation,butwouldgainbythepositivedeclineinrentcausedbythedecreaseinspeculativelandvalues.Anewequilibriumwouldbeestablished,atwhichthecommonrateofwagesandinterestwouldbemuchhigherthannow.

Butthisnewequilibriumestablished,furtheradvancesinproductivepower,andthetendencyinthisdirectionwouldbegreatlyaccelerated,wouldresultinstillincreasingrent,notattheexpenseofwagesandinterest,butbynewgainsinproduction,which,asrentwouldbetakenbythecommunityforpublicuses,wouldaccruetotheadvantageofeverymemberofthecommunity.Thus,asmaterialprogresswenton,theconditionofthemasseswouldconstantlyimprove.Notmerelyoneclasswouldbecomericher,butallwouldbecomericher;notmerelyoneclasswouldhavemoreofthenecessaries,conveniences,andeleganciesoflife,butallwouldhavemore.For,theincreasingpowerofproduction,whichcomeswithincreasingpopulation,witheverynewdiscoveryintheproductivearts,witheverylabor-savinginvention,witheveryextensionandfacilitationofexchanges,couldbemonopolizedbynone.Thatpartofthebenefitwhichdidnotgodirectlytoincreasetherewardoflaborandcapitalwouldgotothestate—thatistosay,tothewholecommunity.Withalltheenormousadvantages,materialandmental,ofadensepopulation,wouldbeunitedthefreedomandequalitythatcannowbefoundonlyinnewandsparselysettleddistricts.

And,then,considerhowequalizationinthedistributionofwealthwouldreactuponproduction,everywherepreventingwaste,everywhereincreasingpower.

Ifitwerepossibletoexpressinfiguresthedirectpecuniarylosswhichsocietysuffersfromthesocialmaladjustmentswhichcondemnlargeclassestopovertyandvice,theestimatewouldbeappalling.Englandmaintainsoveramillionpaupersonofficialcharity;thecityofNewYork

alonespendsoversevenmilliondollarsayearinasimilarway.Butwhatisspentfrompublicfunds,whatisspentbycharitablesocietiesandwhatisspentinindividualcharity,would,ifaggregated,bebutthefirstandsmallestitemintheaccount.Thepotentialearningsofthelaborthusgoingtowaste,thecostofthereckless,improvidentandidlehabitsthusgenerated;thepecuniaryloss,toconsidernothingmore,suggestedbytheappallingstatisticsofmortality,andespeciallyinfantmortality,amongthepoorerclasses;thewasteindicatedbytheginpalacesorlowgroggerieswhichincreaseaspovertydeepens;thedamagedonebytheverminofsocietythatarebredofpovertyanddestitution—thethieves,prostitutes,beggars,andtramps;thecostofguardingsocietyagainstthem,areallitemsinthesumwhichthepresentunjustandunequaldistributionofwealthtakesfromtheaggregatewhich,withpresentmeansofproduction,societymightenjoy.Noryetshallwehavecompletedtheaccount.Theignoranceandvice,therecklessnessandimmoralityengenderedbytheinequalityinthedistributionofwealthshowthemselvesintheimbecilityandcorruptionofgovernment;andthewasteofpublicrevenues,andthestillgreaterwasteinvolvedintheignorantandcorruptabuseofpublicpowersandfunctions,aretheirlegitimateconsequences.

Buttheincreaseinwages,andtheopeningofnewavenuesofemploymentwhichwouldresultfromtheappropriationofrenttopublicpurposes,wouldnotmerelystopthesewastesandrelievesocietyoftheseenormouslosses;newpowerwouldbeaddedtolabor.Itisbutatruismthatlaborismostproductivewhereitswagesarelargest.Poorlypaidlaborisinefficientlabor,theworldover.

WhatisremarkedbetweentheefficiencyoflaborintheagriculturaldistrictsofEnglandwheredifferentratesofwagesprevail;whatBrasseynoticedasbetweentheworkdonebyhisbetterpaidEnglishnavviesandthatdonebytheworsepaidlaborofthecontinent;whatwasevidentintheUnitedStatesasbetweenslavelaborandfreelabor;whatisseenbytheastonishingnumberofmechanicsorservantsrequiredinIndiaor

Chinatogetanythingdone,isuniversallytrue.Theefficiencyoflaboralwaysincreaseswiththehabitualwagesoflabor—forhighwagesmeanincreasedself-respect,intelligence,hope,andenergy.Manisnotamachine,thatwilldosomuchandnomore;heisnotananimal,whosepowersmayreachthusfarandnofurther.Itismind,notmuscle,whichisthegreatagentofproduction.Thephysicalpowerevolvedinthehumanframeisoneoftheweakestofforces,butforthehumanintelligencetheresistlesscurrentsofnatureflow,andmatterbecomesplastictothehumanwill.Toincreasethecomforts,andleisure,andindependenceofthemassesistoincreasetheirintelligence;itistobringthebraintotheaidofthehand;itistoengageinthecommonworkoflifethefacultywhichmeasurestheanimalculeandtracestheorbitsofthestars!

Whocansaytowhatinfinitepowersthewealth-producingcapacityoflabormaynotberaisedbysocialadjustmentswhichwillgivetotheproducersofwealththeirfairproportionofitsadvantagesandenjoyments!Withpresentprocessesthegainwouldbesimplyincalculable,butjustaswagesarehigh,sodotheinventionandutilizationofimprovedprocessesandmachinerygoonwithgreaterrapidityandease.ThatthewheatcropsofsouthernRussiaarestillreapedwiththescytheandbeatenoutwiththeflailissimplybecausewagesaretheresolow.Americaninvention,Americanaptitudeforlabor-savingprocessesandmachineryaretheresultofthecomparativelyhighwagesthathaveprevailedintheUnitedStates.HadourproducersbeencondemnedtothelowrewardoftheEgyptianfellahorChinesecoolie,wewouldbedrawingwaterbyhandandtransportinggoodsontheshouldersofmen.Theincreaseintherewardoflaborandcapitalwouldstillfurtherstimulateinventionandhastentheadoptionofimprovedprocesses,andthesewouldtrulyappear,whatinthemselvestheyreallyare—anunmixedgood.Theinjuriouseffectsoflabor-savingmachineryupontheworkingclasses,thatarenowsooftenapparent,andthat,inspiteofallargument,makesomanypeopleregardmachineryasanevilinsteadofablessing,woulddisappear.Everynewpowerengagedintheserviceofmanwouldimprovetheconditionofall.Andfromthegeneral

intelligenceandmentalactivityspringingfromthisgeneralimprovementofconditionwouldcomenewdevelopmentsofpowerofwhichweasyetcannotdream.

ButIshallnotdeny,anddonotwishtolosesightofthefact,thatwhilethuspreventingwasteandthusaddingtotheefficiencyoflabor,theequalizationinthedistributionofwealththatwouldresultfromthesimpleplanoftaxationthatIpropose,mustlessentheintensitywithwhichwealthispursued.Itseemstomethatinaconditionofsocietyinwhichnooneneedfearpoverty,noonewoulddesiregreatwealth—atleast,noonewouldtakethetroubletostriveandtostrainforitasmendonow.For,certainly,thespectacleofmenwhohaveonlyafewyearstolive,slavingawaytheirtimeforthesakeofdyingrich,isinitselfsounnaturalandabsurd,thatinastateofsocietywheretheabolitionofthefearofwanthaddissipatedtheenviousadmirationwithwhichthemassesofmennowregardthepossessionofgreatriches,whoeverwouldtoiltoacquiremorethanhecaredtousewouldbelookeduponaswewouldnowlookonamanwhowouldthatchhisheadwithhalfadozenhats,orwalkaroundinthehotsunwithanovercoaton.Wheneveryoneissureofbeingabletogetenough,noonewillcaretomakeapack-horseofhimself.

Andthoughthisincentivetoproductionbewithdrawn,canwenotspareit?Whatevermayhavebeenitsofficeinanearlierstageofdevelopment,itisnotneedednow.Thedangersthatmenaceourcivilizationdonotcomefromtheweaknessofthespringsofproduction.Whatitsuffersfrom,andwhat,ifaremedybenotapplied,itmustdiefrom,isunequaldistribution!

Norwouldtheremovalofthisincentive,regardedonlyfromthestandpointofproduction,beanunmixedloss.For,thattheaggregateofproductionisgreatlyreducedbythegreedwithwhichrichesarepursued,isoneofthemostobtrusivefactsofmodernsociety.While,werethisinsanedesiretogetrichatanycostlessened,mentalactivitiesnow

devotedtoscrapingtogetherricheswouldbetranslatedintofarhigherspheresofusefulness.

[BacktoTableofContents]

ChapterIIIOftheEffectUponIndividualsandClasses

Whenitisfirstproposedtoputalltaxesuponthevalueofland,andthusconfiscaterent,alllandholdersarelikelytotakethealarm,andtherewillnotbewantingappealstothefearsofsmallfarmandhomesteadowners,whowillbetoldthatthisisapropositiontorobthemoftheirhard-earnedproperty.Butamoment’sreflectionwillshowthatthispropositionshouldcommenditselftoallwhoseinterestsaslandholdersdonotlargelyexceedtheirinterestsaslaborersorcapitalists,orboth.Andfurtherconsiderationwillshowthatthoughthelargelandholdersmayloserelatively,yetevenintheircasetherewillbeanabsolutegain.For,theincreaseinproductionwillbesogreatthatlaborandcapitalwillgainverymuchmorethanwillbelosttoprivatelandownership,whileinthesegains,andinthegreateronesinvolvedinamorehealthysocialcondition,thewholecommunity,includingthelandownersthemselves,willshare.

InaprecedingchapterIhavegoneoverthequestionofwhatisduetothepresentlandholders,andhaveshownthattheyhavenoclaimtocompensation.Butthereisstillanothergroundonwhichwemaydismissallideaofcompensation.Theywillnotreallybeinjured.

Itismanifest,ofcourse,thatthechangeIproposewillgreatlybenefitallthosewholivebywages,whetherofhandorofhead—laborers,operatives,mechanics,clerks,professionalmenofallsorts.Itismanifest,also,thatitwillbenefitallthosewholivepartlybywagesandpartlybytheearningsoftheircapital—storekeepers,merchants,manufacturers,employingorundertakingproducersandexchangersofallsortsfromthepeddlerordraymantotherailroadorsteamshipowner—anditislikewisemanifestthatitwillincreasetheincomesofthosewhoseincomesaredrawnfromtheearningsofcapital,orfrominvestmentsotherthaninlands,saveperhapstheholdersofgovernmentbondsorothersecuritiesbearingfixedratesofinterest,whichwill

probablydepreciateinsellingvalue,owingtotheriseinthegeneralrateofinterest,thoughtheincomefromthemwillremainthesame.

Take,now,thecaseofthehomesteadowner—themechanic,storekeeper,orprofessionalmanwhohassecuredhimselfahouseandlot,wherehelives,andwhichhecontemplateswithsatisfactionasaplacefromwhichhisfamilycannotbeejectedincaseofhisdeath.Hewillnotbeinjured;onthecontrary,hewillbethegainer.Thesellingvalueofhislotwilldiminish—theoreticallyitwillentirelydisappear.Butitsusefulnesstohimwillnotdisappear.Itwillservehispurposeaswellasever.While,asthevalueofallotherlotswilldiminishordisappearinthesameratio,heretainsthesamesecurityofalwayshavingalotthathehadbefore.Thatistosay,heisaloseronlyasthemanwhohasboughthimselfapairofbootsmaybesaidtobealoserbyasubsequentfallinthepriceofboots.Hisbootswillbejustasusefultohim,andthenextpairofbootshecangetcheaper.So,tothehomesteadowner,hislotwillbeasuseful,andshouldhelookforwardtogettingalargerlot,orhavinghischildren,astheygrowup,gethomesteadsoftheirown,hewill,eveninthematteroflots,bethegainer.Andinthepresent,otherthingsconsidered,hewillbemuchthegainer.Forthoughhewillhavemoretaxestopayuponhisland,hewillbereleasedfromtaxesuponhishouseandimprovements,uponhisfurnitureandpersonalproperty,uponallthatheandhisfamilyeat,drinkandwear,whilehisearningswillbelargelyincreasedbytheriseofwages,theconstantemployment,andtheincreasedbrisknessoftrade.Hisonlylosswillbe,ifhewantstosellhislotwithoutgettinganother,andthiswillbeasmalllosscomparedwiththegreatgain.

Andsowiththefarmer.Ispeaknotnowofthefarmerswhonevertouchthehandlesofaplow,whocultivatethousandsofacresandenjoyincomeslikethoseoftherichSouthernplantersbeforethewar;butoftheworkingfarmerswhoconstitutesuchalargeclassintheUnitedStates—menwhoownsmallfarms,whichtheycultivatewiththeaidoftheirboys,andperhapssomehiredhelp,andwhoinEuropewouldbecalledpeasantproprietors.Paradoxicalasitmayappeartothesemenuntilthey

understandthefullbearingsoftheproposition,ofallclassesabovethatofthemerelaborertheyhavemosttogainbyplacingalltaxesuponthevalueofland.Thattheydonotnowgetasgoodalivingastheirhardworkoughttogivethem,theygenerallyfeel,thoughtheymaynotbeabletotracethecause.Thefactisthattaxation,asnowlevied,fallsonthemwithpeculiarseverity.Theyaretaxedonalltheirimprovements—houses,barns,fences,crops,stock.Thepersonalpropertywhichtheyhavecannotbeasreadilyconcealedorundervaluedascanthemorevaluablekindswhichareconcentratedinthecities.Theyarenotonlytaxedonpersonalpropertyandimprovements,whichtheownersofunusedlandescape,buttheirlandisgenerallytaxedatahigherratethanlandheldonspeculation,simplybecauseitisimproved.Butfurtherthanthis,alltaxesimposedoncommodities,andespeciallythetaxeswhich,likeourprotectiveduties,areimposedwithaviewofraisingthepricesofcommodities,fallonthefarmerwithoutmitigation.ForinacountryliketheUnitedStates,whichexportsagriculturalproduce,thefarmercannotbeprotected.Whoevergains,hemustlose.SomeyearsagotheFreeTradeLeagueofNewYorkpublishedabroadsidecontainingcutsofvariousarticlesofnecessitymarkedwiththedutiesimposedbythetariff,andwhichreadsomethinginthiswise:”Thefarmerrisesinthemorninganddrawsonhispantaloonstaxed40percent.andhisbootstaxed30percent.,strikingalightwithamatchtaxed200percent.,“andsoon,followinghimthroughthedayandthroughlife,until,killedbytaxation,heisloweredintothegravewitharopetaxed45percent.Thisisbutagraphicillustrationofthemannerinwhichsuchtaxesultimatelyfall.Thefarmerwouldbeagreatgainerbythesubstitutionofasingletaxuponthevalueoflandforallthesetaxes,forthetaxationoflandvalueswouldfallwithgreatestweight,notupontheagriculturaldistricts,wherelandvaluesarecomparativelysmall,butuponthetownsandcitieswherelandvaluesarehigh;whereastaxesuponpersonalpropertyandimprovementsfallasheavilyinthecountryasinthecity.Andinsparselysettleddistrictstherewouldbehardlyanytaxesatallforthefarmertopay.Fortaxes,beinglevieduponthevalueofthebareland,wouldfallasheavilyuponunimprovedasuponimprovedland.Acreforacre,theimprovedand

cultivatedfarm,withitsbuildings,fences,orchard,crops,andstock,couldbetaxednomorethanunusedlandofequalquality.Theresultwouldbethatspeculativevalueswouldbekeptdown,andthatcultivatedandimprovedfarmswouldhavenotaxestopayuntilthecountryaroundthemhadbeenwellsettled.Infact,paradoxicalasitmayatfirstseemtothem,theeffectofputtingalltaxationuponthevalueoflandwouldbetorelievetheharderworkingfarmersofalltaxation.

Butthegreatgainoftheworkingfarmercanbeseenonlywhentheeffectuponthedistributionofpopulationisconsidered.Thedestructionofspeculativelandvalueswouldtendtodiffusepopulationwhereitistoodenseandtoconcentrateitwhereitistoosparse;tosubstituteforthetenementhouse,homessurroundedbygardens,andfullytosettleagriculturaldistrictsbeforepeopleweredrivenfarfromneighborstolookforland.Thepeopleofthecitieswouldthusgetmoreofthepureairandsunshineofthecountry,thepeopleofthecountrymoreoftheeconomiesandsociallifeofthecity.If,asisdoubtlessthecase,theapplicationofmachinerytendstolargefields,agriculturalpopulationwillassumetheprimitiveformandclusterinvillages.Thelifeoftheaveragefarmerisnowunnecessarilydreary.Heisnotonlycompelledtoworkearlyandlate,butheiscutoffbythesparsenessofpopulationfromtheconveniences,andamusements,theeducationalfacilities,andthesocialandintellectualopportunitiesthatcomewiththeclosercontactofmanwithman.Hewouldbefarbetteroffinalltheserespects,andhislaborwouldbefarmoreproductive,ifheandthosearoundhimheldnomorelandthantheywantedtouse.Whilehischildren,astheygrewup,wouldneitherbesoimpelledtoseektheexcitementofacitynorwouldtheybedrivensofarawaytoseekfarmsoftheirown.Theirmeansoflivingwouldbeintheirownhands,andathome.

Inshort,theworkingfarmerisbothalaborerandacapitalist,aswellasalandowner,anditisbyhislaborandcapitalthathislivingismade.Hislosswouldbenominal;hisgainwouldberealandgreat.

Invaryingdegreesisthistrueofalllandholders.Manylandholdersarelaborersofonesortoranother.Anditwouldbehardtofindalandownernotalaborer,whoisnotalsoacapitalist—whilethegeneralruleis,thatthelargerthelandownerthegreaterthecapitalist.Sotrueisthisthatincommonthoughtthecharactersareconfounded.Thustoputalltaxesonthevalueofland,whileitwouldbelargelytoreduceallgreatfortunes,wouldinnocaseleavetherichmanpenniless.TheDukeofWestminster,whoownsaconsiderablepartofthesiteofLondon,isprobablytherichestlandownerintheworld.Totakeallhisgroundrentsbytaxationwouldlargelyreducehisenormousincome,butwouldstillleavehimhisbuildingsandalltheincomefromthem,anddoubtlessmuchpersonalpropertyinvariousothershapes.Hewouldstillhaveallhecouldbyanypossibilityenjoy,andamuchbetterstateofsocietyinwhichtoenjoyit.

SowouldtheAstorsofNewYorkremainveryrich.Andso,Ithink,itwillbeseenthroughout—thismeasurewouldmakenoonepoorerbutsuchascouldbemadeagreatdealpoorerwithoutbeingreallyhurt.Itwouldcutdowngreatfortunes,butitwouldimpoverishnoone.

Wealthwouldnotonlybeenormouslyincreased;itwouldbeequallydistributed.Idonotmeanthateachindividualwouldgetthesameamountofwealth.Thatwouldnotbeequaldistribution,solongasdifferentindividualshavedifferentpowersanddifferentdesires.ButImeanthatwealthwouldbedistributedinaccordancewiththedegreeinwhichtheindustry,skill,knowledge,orprudenceofeachcontributedtothecommonstock.Thegreatcausewhichconcentrateswealthinthehandsofthosewhodonotproduce,andtakesitfromthehandsofthosewhodo,wouldbegone.Theinequalitiesthatcontinuedtoexistwouldbethoseofnature,nottheartificialinequalitiesproducedbythedenialofnaturallaw.Thenon-producerwouldnolongerrollinluxurywhiletheproducergotbutthebarestnecessitiesofanimalexistence.

Themonopolyofthelandgone,thereneedbenofearoflargefortunes.Forthentherichesofanyindividualmustconsistofwealth,properlyso-

called—ofwealth,whichistheproductoflabor,andwhichconstantlytendstodissipation,fornationaldebts,Iimagine,wouldnotlongsurvivetheabolitionofthesystemfromwhichtheyspring.Allfearofgreatfortunesmightbedismissed,forwheneveryonegetswhathefairlyearns,noonecangetmorethanhefairlyearns.Howmanymenaretherewhofairlyearnamilliondollars?

Besidestheenormousincreaseintheproductivepoweroflaborwhichwouldresultfromthebetterdistributionofpopulationtherewouldbealsoasimilareconomyintheproductivepowerofland.Theconcentrationofpopulationincitiesfedbytheexhaustivecultivationoflarge,sparselypopulatedareas,resultsinaliteraldrainingintotheseaoftheelementsoffertility.Howenormousthiswasteismaybeseenfromthecalculationsthathavebeenmadeastothesewageofourcities,anditspracticalresultistobeseeninthediminishingproductivenessofagricultureinlargesections.InagreatpartoftheUnitedStateswearesteadilyexhaustingourlands.

[BacktoTableofContents]

ChapterIVOftheChangesThatWouldBeWroughtinSocialOrganizationandSocialLife

Wearedealingonlywithgeneralprinciples.Therearesomemattersofdetail—suchasthosearisingfromthedivisionofrevenuesbetweenlocalandgeneralgovernments—whichuponapplicationoftheseprincipleswouldcomeup,buttheseitisnotnecessaryheretodiscuss.Whenonceprinciplesaresettled,detailswillbereadilyadjusted.

Norwithouttoomuchelaborationisitpossibletonoticeallthechangeswhichwouldbewrought,orwouldbecomepossible,byachangewhichwouldreadjusttheveryfoundationofsociety,buttosomemainfeaturesletmecallattention.

Noticeableamongtheseisthegreatsimplicitywhichwouldbecomepossibleingovernment.Tocollecttaxes,topreventandpunishevasions,tocheckandcountercheckrevenuesdrawnfromsomanydistinctsources,nowmakeupprobablythree-fourths,perhapsseven-eighthsofthebusinessofgovernment,outsideofthepreservationoforder,themaintenanceofthemilitaryarm,andtheadministrationofjustice.Animmenseandcomplicatednetworkofgovernmentalmachinerywouldthusbedispensedwith.

Intheadministrationofjusticetherewouldbealikesavingofstrain.Muchofthecivilbusinessofourcourtsarisesfromdisputesastoownershipofland.Thesewouldceasewhenthestatewasvirtuallyacknowledgeedgedasthesoleownerofland,andalloccupiersbecamepracticallyrent-payingtenants.Thegrowthofmoralityconsequentuponthecessationofwantwouldtendtoalikediminutioninothercivilbusinessofthecourts,whichcouldbehastenedbytheadoptionofthecommonsensepropositionofBenthamtoabolishalllawsforthe

collectionofdebtsandtheenforcementofprivatecontracts.Theriseofwages,theopeningofopportunitiesforalltomakeaneasyandcomfortableliving,wouldatoncelessenandwouldsooneliminatefromsocietythethieves,swindlers,andotherclassesofcriminalswhospringfromtheunequaldistributionofwealth.Thustheadministrationofthecriminallaw,withallitsparaphernaliaofpolicemen,detectives,prisons,andpenitentiaries,would,liketheadministrationofthecivillaw,ceasetomakesuchadrainuponthevitalforceandattentionofsociety.Weshouldgetridnotonlyofmanyjudges,bailiffs,clerks,andprisonkeepers,butofthegreathostoflawyerswhoarenowmaintainedattheexpenseofproducers;andtalentnowwastedinlegalsubtletieswouldbeturnedtohigherpursuits.

Thelegislative,judicial,andexecutivefunctionsofgovernmentwouldinthiswaybevastlysimplified.NorcanIthinkthatthepublicdebtsandthestandingarmies,whicharehistoricallytheoutgrowthofthechangefromfeudaltoallodialtenures,wouldlongremainafterthereversiontotheoldideathatthelandofacountryisthecommonrightofthepeopleofthecountry.Theformercouldreadilybepaidoffbyataxthatwouldnotlessenthewagesoflabornorcheckproduction,andthelatterthegrowthofintelligenceandindependenceamongthemasses,aided,perhaps,bytheprogressofinvention,whichisrevolutionizingthemilitaryart,mustsooncausetodisappear.

SocietywouldthusapproachtheidealofJeffersoniandemocracy,thepromisedlandofHerbertSpencer,theabolitionofgovernment.Butofgovernmentonlyasadirectingandrepressivepower.Itwouldatthesametime,andinthesamedegree,becomepossibleforittorealizethedreamofsocialism.Allthissimplificationandabrogationofthepresentfunctionsofgovernmentwouldmakepossibletheassumptionofcertainotherfunctionswhicharenowpressingforrecognition.Governmentcouldtakeuponitselfthetransmissionofmessagesbytelegraph,aswellasbymail;ofbuildingandoperatingrailroads,aswellasofopeningandmaintainingcommonroads.Withpresentfunctionssosimplifiedand

reduced,functionssuchasthesecouldbeassumedwithoutdangerorstrain,andwouldbeunderthesupervisionofpublicattention,whichisnowdistracted.Therewouldbeagreatandincreasingsurplusrevenuefromthetaxationoflandvalues,formaterialprogress,whichwouldgoonwithgreatlyacceleratedrapidity,wouldtendconstantlytoincreaserent.Thisrevenuearisingfromthecommonpropertycouldbeappliedtothecommonbenefit,asweretherevenuesofSparta.Wemightnotestablishpublictables—theywouldbeunnecessary;butwecouldestablishpublicbaths,museums,libraries,gardens,lecturerooms,musicanddancingballs,theaters,universities,technicalschools,shootinggalleries,playgrounds,gymnasiums,etc.Heat,light,andmotivepower,aswellaswater,mightbeconductedthroughourstreetsatpublicexpense;ourroadsbelinedwithfruittrees;discoverersandinventorsrewarded,scientificinvestigationssupported;andinathousandwaysthepublicrevenuesmadetofostereffortsforthepublicbenefit.Weshouldreachtheidealofthesocialist,butnotthroughgovernmentrepression.Governmentwouldchangeitscharacter,andwouldbecometheadministrationofagreatco-operativesociety.Itwouldbecomemerelytheagencybywhichthecommonpropertywasadministeredforthecommonbenefit.

Doesthisseemimpracticable?Considerforamomentthevastchangesthatwouldbewroughtinsociallifebyachangewhichwouldassuretolaboritsfullreward;whichwouldbanishwantandthefearofwant;andgivetothehumblestfreedomtodevelopinnaturalsymmetry.

Inthinkingofthepossibilitiesofsocialorganization,weareapttoassumethatgreedisthestrongestofhumanmotives,andthatsystemsofadministrationcanbesafelybasedonlyupontheideathatthefearofpunishmentisnecessarytokeepmenhonest—thatselfishinterestsarealwaysstrongerthangeneralinterests.Nothingcouldbefurtherfromthetruth.

Fromwhencespringsthislustforgain,togratifywhichmentread

everythingpureandnobleundertheirfeet;towhichtheysacrificeallthehigherpossibilitiesoflife;whichconvertscivilityintoahollowpretense,patriotismintoasham,andreligionintohypocrisy;whichmakessomuchofcivilizedexistenceanIshmaelitishwarfare,ofwhichtheweaponsarecunningandfraud?

Doesitnotspringfromtheexistenceofwant?CarlylesomewheresaysthatpovertyisthehellofwhichthemodernEnglishmanismostafraid.Andheisright.Povertyistheopenmouthed,relentlesshellwhichyawnsbeneathcivilizedsociety.Anditishellenough.TheVedasdeclarenotruerthingthanwhenthewisecrowBushandatellstheeagle-bearerofVishnuthatthekeenestpainisinpoverty.Forpovertyisnotmerelydeprivation;itmeansshame,degradation;thesearingofthemostsensitivepartsofourmoralandmentalnatureaswithhotirons;thedenialofthestrongestimpulsesandthesweetestaffections;thewrenchingofthemostvitalnerves.Youloveyourwife,youloveyourchildren;butwoulditnotbeeasiertoseethemdiethantoseethemreducedtothepinchofwantinwhichlargeclassesineveryhighlycivilizedcommunitylive?Thestrongestofanimalpassionsisthatwithwhichweclingtolife,butitisaneverydayoccurrenceincivilizedsocietiesformentoputpoisontotheirmouthsorpistolstotheirheadsfromfearofpoverty,andforonewhodoesthisthereareprobablyahundredwhohavethedesire,butarerestrainedbyinstinctiveshrinking,byreligiousconsiderations,orbyfamilyties.

Fromthishellofpoverty,itisbutnaturalthatmenshouldmakeeveryefforttoescape.Withtheimpulsetoself-preservationandself-gratificationcombinenoblerfeelings,andloveaswellasfearurgesinthestruggle.Manyamandoesameanthing,adishonestthing,agreedyandgraspingandunjustthing,intheefforttoplaceabovewant,orthefearofwant,motherorwifeorchildren.

Andoutofthisconditionofthingsarisesapublicopinionwhichenlists,asanimpellingpowerinthestruggletograspandtokeep,oneofthe

strongest—perhapswithmanymentheverystrongest—springsofhumanaction.Thedesireforapprobation,thefeelingthaturgesustowintherespect,admiration,orsympathyofourfellows,isinstinctiveanduniversal.Distortedsometimesintothemostabnormalmanifestations,itmayyetbeeverywhereperceived.Itispotentwiththeveriestsavage,aswiththemosthighlycultivatedmemberofthemostpolishedsociety;itshowsitselfwiththefirstgleamofintelligence,andpersiststothelastbreath.Ittriumphsovertheloveofease,overthesenseofpain,overthedreadofdeath.Itdictatesthemosttrivialandthemostimportantactions.

Thechildjustbeginningtotoddleortotalkwillmakeneweffortsasitscunninglittletricksexciteattentionandlaughter;thedyingmasteroftheworldgathershisrobesaroundhim,thathemaypassawayasbecomesaking;Chinesemotherswilldeformtheirdaughters’feetbycruelstocks,Europeanwomenwillsacrificetheirowncomfortandthecomfortoftheirfamiliestosimilardictatesoffashion;thePolynesian,thathemayexciteadmirationbyhisbeautifultattoo,willholdhimselfstillwhilehisfleshistornbysharks’teeth;theNorthAmericanIndian,tiedtothestake,willbearthemostfiendishtortureswithoutamoan,and,thathemayberespectedandadmiredasagreatbrave,willtaunthistormentorstonewcruelties.Itisthisthatleadstheforlornhope;itisthisthattrimsthelampofthepalestudent;itisthisthatimpelsmentostrive,tostrain,totoil,andtodie.ItisthisthatraisedthepyramidsandthatfiredtheEphesiandome.

Now,menadmirewhattheydesire.Howsweettothestorm-strickenseemsthesafeharbor;foodtothehungry,drinktothethirsty,warmthtotheshivering,resttotheweary,powertotheweak,knowledgetohiminwhomtheintellectualyearningsofthesoulhavebeenaroused.Andthusthestingofwantandthefearofwantmakemenadmireaboveallthingsthepossessionofriches,andtobecomewealthyistobecomerespected,andadmired,andinfluential.Getmoney—honestly,ifyoucan,butatanyrategetmoney!Thisisthelessonthatsocietyisdailyandhourlydinningintheearsofitsmembers.Meninstinctivelyadmirevirtueandtruth,but

thestingofwantandthefearofwantmakethemevenmorestronglyadmiretherichandsympathizewiththefortunate.Itiswelltobehonestandjust,andmenwillcommendit;buthewhobyfraudandinjusticegetshimamilliondollarswillhavemorerespect,andadmiration,andinfluence,moreeyeserviceandlipservice,ifnotheartservice,thanhewhorefusesit.Theonemayhavehisrewardinthefuture;hemayknowthathisnameiswritintheBookofLife,andthatforhimisthewhiterobeandthepalmbranchofthevictoragainsttemptation;buttheotherhashisrewardinthepresent.Hisnameiswritinthelistof”oursubstantialcitizens;“hehasthecourtshipofmenandtheflatteryofwomen;thebestpewinthechurchandthepersonalregardoftheeloquentclergymanwhointhenameofChristpreachestheGospelofDives,andtonesdownintoameaninglessflowerofEasternspeechthesternmetaphorofthecamelandtheneedle’seye.Hemaybeapatronofarts,aMæcenastomenofletters;mayprofitbytheconverseoftheintelligent,andbepolishedbytheattritionoftherefined.Hisalmsmayfeedthepoor,andhelpthestruggling,andbringsunshineintodesolateplaces;andnoblepublicinstitutionscommemorate,afterheisgone,hisnameandhisfame.Itisnotintheguiseofahideousmonster,withhornsandtall,thatSatantemptsthechildrenofmen,butasanangeloflight.Hispromisesarenotaloneofthekingdomsoftheworld,butofmentalandmoralprincipalitiesandpowers.Heappealsnotonlytotheanimalappetites,buttothecravingsthatstirinmanbecauseheismorethanananimal.

Takethecaseofthosemiserable”menwithmuckrakes,“whoaretobeseenineverycommunityasplainlyasBunyansawtheirtypeinhisvision—who,longaftertheyhaveaccumulatedwealthenoughtosatisfyeverydesire,goonworking,scheming,strivingtoaddrichestoriches.Itwasthedesire”tobesomething;“nay,inmanycases,thedesiretodonobleandgenerousdeeds,thatstartedthemonacareerofmoneygetting.Andwhatcompelsthemtoitlongaftereverypossibleneedissatisfied,whaturgesthemstillwithunsatisfiedandravenousgreed,isnotmerelytheforceoftyrannoushabit,butthesubtlergratificationswhichthe

possessionofrichesgives—thesenseofpowerandinfluence,thesenseofbeinglookeduptoandrespected,thesensethattheirwealthnotmerelyraisesthemabovewant,butmakesthemmenofmarkinthecommunityinwhichtheylive.Itisthisthatmakestherichmansoloathtopartwithhismoney,soanxioustogetmore.

Againsttemptationsthatthusappealtothestrongestimpulsesofournature,thesanctionsoflawandthepreceptsofreligioncaneffectbutlittle;andthewonderis,notthatmenaresoself-seeking,butthattheyarenotmuchmoreso.Thatunderpresentcircumstancesmenarenotmoregrasping,moreunfaithful,moreselfishthantheyare,provesthegoodnessandfruitfulnessofhumannature,theceaselessflowoftheperennialfountainsfromwhichitsmoralqualitiesarefed.Allofushavemothers;mostofushavechildren,andsofaith,andpurity,andunselfishnesscanneverbeutterlybanishedfromtheworld,howsoeverbadbesocialadjustments.

Butwhateverispotentforevilmaybemadepotentforgood.ThechangeIhaveproposedwoulddestroytheconditionsthatdistortimpulsesinthemselvesbeneficent,andwouldtransmutetheforceswhichnowtendtodisintegratesocietyintoforceswhichwouldtendtouniteandpurifyit.

Givelaborafreefieldanditsfullearnings;takeforthebenefitofthewholecommunitythatfundwhichthegrowthofthecommunitycreates,andwantandthefearofwantwouldbegone.Thespringsofproductionwouldbesetfree,andtheenormousincreaseofwealthwouldgivethepoorestamplecomfort.Menwouldnomoreworryaboutfindingemploymentthantheyworryaboutfindingairtobreathe;theyneedhavenomorecareaboutphysicalnecessitiesthandotheliliesofthefield.Theprogressofscience,themarchofinvention,thediffusionofknowledge,wouldbringtheirbenefitstoall.

Withthisabolitionofwantandthefearofwant,theadmirationofricheswoulddecay,andmenwouldseektherespectandapprobationoftheir

fellowsinothermodesthanbytheacquisitionanddisplayofwealth.Inthiswaytherewouldbebroughttothemanagementofpublicaffairs,andtheadministrationofcommonfunds,theskill,theattention,thefidelity,andintegritythatcannowbesecuredonlyforprivateinterests,andarailroadorgasworksmightbeoperatedonpublicaccount,notonlymoreeconomicallyandefficientlythanasatpresent,underjointstockmanagement,butaseconomicallyandefficientlyaswouldbepossibleunderasingleownership.TheprizeoftheOlympiangames,thatcalledforththemoststrenuousexertionsofallGreece,wasbutawreathofwildolive;forabitofribbonmenhaveoverandoveragainperformedservicesnomoneycouldhavebought.

Shortsightedisthephilosophywhichcountsonselfishnessasthemastermotiveofhumanaction.Itisblindtofactsofwhichtheworldisfull.Itseesnotthepresent,andreadsnotthepastaright.Ifyouwouldmovementoaction,towhatshallyouappeal?Nottotheirpockets,buttotheirpatriotism;nottoselfishness,buttosympathy.Self-interestis,asitwere,amechanicalforce—potent,itistrue;capableoflargeandwideresults.Butthereisinhumannaturewhatmaybelikenedtoachemicalforce;whichmeltsandfusesandoverwhelms;towhichnothingseemsimpossible.“Allthatamanhathwillhegiveforhislife”—thatisself-interest.Butinloyaltytohigherimpulsesmenwillgiveevenlife.

Itisnotselfishnessthatenrichestheannalsofeverypeoplewithheroesandsaints.Itisnotselfishnessthatoneverypageoftheworld’shistoryburstsoutinsuddensplendorofnobledeedsorshedsthesoftradianceofbenignantlives.ItwasnotselfishnessthatturnedGautama’sbacktohisroyalhomeorbadetheMaidofOrleanslifttheswordfromthealtar;thatheldtheThreeHundredinthePassofThermopylæorgatheredintoWinkelried’sbosomthesheafofspears;thatchainedVincentdePaultothebenchofthegalley,orbroughtlittlestarvingchildren,duringtheIndianfamine,totteringtothereliefstationswithyetweakerstarvelingsintheirarms.Callitreligion,patriotism,sympathy,theenthusiasmforhumanity,ortheloveofGod—giveitwhatnameyouwill;thereisyeta

forcewhichovercomesanddrivesoutselfishness;aforcewhichistheelectricityofthemoraluniverse;aforcebesidewhichallothersareweak.Everywherethatmenhavelivedithasshownitspower,andto-day,asever,theworldisfullofit.Tobepitiedisthemanwhohasneverseenandneverfeltit.Lookaround!amongcommonmenandwomen,amidthecareandthestruggleofdailylife,inthejarofthenoisystreetandamidthesqualorwherewanthides—everyhereandthereisthedarknesslightedwiththetremulousplayofitslambentflames.Hewhohasnotseenithaswalkedwithshuteyes.Hewholooksmaysee,assaysPlutarch,that”thesoulhasaprincipleofkindnessinitself,andisborntolove,aswellastoperceive,think,orremember.“

Andthisforceofforces—thatnowgoestowasteorassumespervertedforms—wemayuseforthestrengthening,andbuildingup,andennoblingofsociety,ifwebutwill,justaswenowusephysicalforcesthatonceseemedbutpowersofdestruction.Allwehavetodoisbuttogiveitfreedomandscope.Thewrongthatproducesinequality;thewrongthatinthemidstofabundancetorturesmenwithwantorharriesthemwiththefearofwant;thatstuntsthemphysically,degradesthemintellectually,anddistortsthemmorally,iswhatalonepreventsharmonioussocialdevelopment.For”allthatisfromthegodsisfullofprovidence.Wearemadeforco-operation—likefeet,likehands,likeeyelids,liketherowsoftheupperandlowerteeth.“

Therearepeopleintowhoseheadsitneverenterstoconceiveofanybetterstateofsocietythanthatwhichnowexists—whoimaginethattheideathattherecouldbeastateofsocietyinwhichgreedwouldbebanished,prisonsstandempty,individualinterestsbesubordinatedtogeneralinterests,andnooneseektorobortooppresshisneighbor,isbutthedreamofimpracticabledreamers,forwhomthesepractical,levelheadedmen,whopridethemselvesonrecognizingfactsastheyare,haveaheartycontempt.Butsuchmen—thoughsomeofthemwritebooks,andsomeofthemoccupythechairsofuniversities,andsomeofthemstandinpulpits—donotthink.

IftheywereaccustomedtodineinsucheatinghousesasaretobefoundinthelowerquartersofLondonandParis,wheretheknivesandforksarechainedtothetable,theywoulddeemitthenatural,ineradicabledispositionofmantocarryofftheknifeandforkwithwhichhehaseaten.

Takeacompanyofwell-bredmenandwomendiningtogether.Thereisnostrugglingforfood,noattemptonthepartofanyonetogetmorethanhisneighbor;noattempttogorgeortocarryoff.Onthecontrary,eachoneisanxioustohelphisneighborbeforehepartakeshimself;tooffertoothersthebestratherthanpickitoutforhimself;andshouldanyoneshowtheslightestdispositiontopreferthegratificationofhisownappetitetothatoftheothers,orinanywaytoactthepigorpilferer,theswiftandheavypenaltyofsocialcontemptandostracismwouldshowhowsuchconductisreprobatedbycommonopinion.

Allthisissocommonastoexcitenoremark,astoseemthenaturalstateofthings.Yetitisnomorenaturalthatmenshouldnotbegreedyoffoodthanthattheyshouldnotbegreedyofwealth.Theyaregreedyoffoodwhentheyarenotassuredthattherewillbeafairandequitabledistributionwhichwillgiveeachenough.Butwhentheseconditionsareassured,theyceasetobegreedyoffood.Andsoinsociety,asatpresentconstituted,menaregreedyofwealthbecausetheconditionsofdistributionaresounjustthatinsteadofeachbeingsureofenough,manyarecertaintobecondemnedtowant.Itisthe”devilcatchthehindmost“ofpresentsocialadjustmentsthatcausestheraceandscrambleforwealth,inwhichallconsiderationsofjustice,mercy,religion,andsentimentaretrampledunderfoot;inwhichmenforgettheirownsouls,andstruggletotheveryvergeofthegraveforwhattheycannottakebeyond.Butanequitabledistributionofwealth,thatwouldexemptallfromthefearofwant,woulddestroythegreedofwealth,justasinpolitesocietythegreedoffoodhasbeendestroyed.

OnthecrowdedsteamersoftheearlyCalifornialinestherewasoftena

markeddifferencebetweenthemannersofthesteerageandthecabin,whichillustratesthisprincipleofhumannature.Anabundanceoffoodwasprovidedforthesteerageasforthecabin,butintheformertherewerenoregulationswhichinsuredefficientservice,andthemealsbecameascramble.Inthecabin,onthecontrary,whereeachwasallottedhisplaceandtherewasnofearthateveryonewouldnotgetenough,therewasnosuchscramblingandwasteaswerewitnessedinthesteerage.Thedifferencewasnotinthecharacterofthepeople,butsimplyinthisfact.Thecabinpassengertransferredtothesteeragewouldparticipateinthegreedyrush,andthesteeragepassengertransferredtothecabinwouldatoncebecomedecorousandpolite.Thesamedifferencewouldshowitselfinsocietyingeneralwerethepresentunjustdistributionofwealthreplacedbyajustdistribution.

Considerthisexistingfactofacultivatedandrefinedsociety,inwhichallthecoarserpassionsareheldincheck,notbyforce,notbylaw,butbycommonopinionandthemutualdesireofpleasing.Ifthisispossibleforapartofacommunity,itispossibleforawholecommunity.Therearestatesofsocietyinwhicheveryonehastogoarmed—inwhicheveryonehastoholdhimselfinreadinesstodefendpersonandpropertywiththestronghand.Ifwehaveprogressedbeyondthat,wemayprogressstillfurther.

Butitmaybesaid,tobanishwantandthefearofwant,wouldbetodestroythestimulustoexertion;menwouldbecomesimplyidlers,andsuchahappystateofgeneralcomfortandcontentwouldbethedeathofprogress.Thisistheoldslaveholders’argument,thatmencanbedriventolaboronlywiththelash.Nothingismoreuntrue.

Wantmightbebanished,butdesirewouldremain.Manistheunsatisfiedanimal.Hehasbutbeguntoexplore,andtheuniverseliesbeforehim.Eachstepthathetakesopensnewvistasandkindlesnewdesires.Heistheconstructiveanimal;hebuilds,heimproves,heinvents,andputstogether,andthegreaterthethinghedoes,thegreaterthethinghewants

todo.Heismorethanananimal.Whateverbetheintelligencethatbreathesthroughnature,itisinthatlikenessthatmanismade.Thesteamship,drivenbyherthrobbingenginesthroughthesea,isinkind,thoughnotindegree,asmuchacreationasthewhalethatswimsbeneath.Thetelescopeandthemicroscope,whataretheybutaddedeyes,whichmanhasmadeforhimself;thesoftwebsandfaircolorsinwhichourwomenarraythemselves,dotheynotanswertotheplumagethatnaturegivesthebird?Manmustbedoingsomething,orfancythatheisdoingsomething,forinhimthrobsthecreativeimpulse;themerebaskerinthesunshineisnotanatural,butanabnormalman.

Assoonasachildcancommanditsmuscles,itwillbegintomakemudpiesordressadoll;itsplayisbuttheimitationoftheworkofitselders;itsverydestructivenessarisesfromthedesiretobedoingsomething,fromthesatisfactionofseeingitselfaccomplishsomething.Thereisnosuchthingasthepursuitofpleasureforthesakeofpleasure.Ourveryamusementsamuseonlyastheyare,orsimulate,thelearningorthedoingofsomething.Themomenttheyceasetoappealeithertoourinquisitiveortoourconstructivepowers,theyceasetoamuse.Itwillspoiltheinterestofthenovelreadertobetoldjusthowthestorywillend;itisonlythechanceandtheskillinvolvedinthegamethatenablethecard-playerto”killtime“byshufflingbitsofpasteboard.TheluxuriousfrivolitiesofVersailleswerepossibletohumanbeingsonlybecausethekingthoughthewasgoverningakingdomandthecourtierswereinpursuitoffreshhonorsandnewpensions.Peoplewholeadwhatarecalledlivesoffashionandpleasuremusthavesomeotherobjectinview,ortheywoulddieofennui;theysupportitonlybecausetheyimaginethattheyaregainingposition,makingfriends,orimprovingthechancesoftheirchildren.Shutamanup,anddenyhimemployment,andhemusteitherdieorgomad.

Itisnotlaborinitselfthatisrepugnanttoman;itisnotthenaturalnecessityforexertionwhichisacurse.Itisonlylaborwhichproducesnothing—exertionofwhichhecannotseetheresults.Totoildayafter

day,andyetgetbutthenecessariesoflife,thisisindeedhard;itisliketheinfernalpunishmentofcompellingamantopumplesthebedrowned,ortotrudgeonatreadmilllesthebecrushed.But,releasedfromthisnecessity,menwouldbutworktheharderandthebetter,forthentheywouldworkastheirinclinationsledthem;thenwouldtheyseemtobereallydoingsomethingforthemselvesorforothers.WasHumboldt’slifeanidleone?DidFranklinfindnooccupationwhenheretiredfromtheprintingbusinesswithenoughtoliveon?IsHerbertSpenceralaggard?DidMichaelAngelopaintforboardandclothes?

Thefactisthattheworkwhichimprovestheconditionofmankind,theworkwhichextendsknowledgeandincreasespower,andenrichesliterature,andelevatesthought,isnotdonetosecurealiving.Itisnottheworkofslaves,driventotheirtaskeitherbythelashofamasterorbyanimalnecessities.Itistheworkofmenwhoperformitforitsownsake,andnotthattheymaygetmoretoeatordrink,orwear,ordisplay.Inastateofsocietywherewantwasabolished,workofthissortwouldbeenormouslyincreased.

IaminclinedtothinkthattheresultofconfiscatingrentinthemannerIhaveproposedwouldbetocausetheorganizationoflabor,whereverlargecapitalswereused,toassumetheco-operativeform,sincethemoreequaldiffusionofwealthwouldunitecapitalistandlaborerinthesameperson.Butwhetherthiswouldbesoornotisoflittlemoment.Thehardtollofroutinelaborwoulddisappear.Wageswouldbetoohighandopportunitiestoogreattocompelanymantostintandstarvethehigherqualitiesofhisnature,andineveryavocationthebrainwouldaidthehand.Work,evenofthecoarserkinds,wouldbecomealightsomething,andthetendencyofmodernproductiontosubdivisionwouldnotinvolvemonotonyorthecontractionofabilityintheworker;butwouldberelievedbyshorthours,bychange,bythealternationofintellectualwithmanualoccupations.Therewouldresult,notonlytheutilizationofproductiveforcesnowgoingtowaste;notonlywouldourpresentknowledge,nowsoimperfectlyapplied,befullyused;butfromthe

mobilityoflaborandthementalactivitywhichwouldbegenerated,therewouldresultadvancesinthemethodsofproductionthatwenowcannotimagine.

For,greatestofalltheenormouswasteswhichthepresentconstitutionofsocietyinvolves,isthatofmentalpower.Howinfinitesimalaretheforcesthatconcurtotheadvanceofcivilization,ascomparedtotheforcesthatlielatent!Howfewarethethinkers,thediscoverers,theinventors,theorganizers,ascomparedwiththegreatmassofthepeople!Yetsuchmenareborninplenty;itistheconditionsthatpermitsofewtodevelop.Thereareamongmeninfinitediversitiesofaptitudeandinclination,astherearesuchinfinitediversitiesinphysicalstructurethatamongamilliontherewillnotbetwothatcannotbetoldapart.But,bothfromobservationandreflection,Iaminclinedtothinkthatthedifferencesofnaturalpowerarenogreaterthanthedifferencesofstatureorofphysicalstrength.Turntothelivesofgreatmen,andseehoweasilytheymightneverhavebeenheardof.HadCæsarcomeofaproletarianfamily;hadNapoleonenteredtheworldafewyearsearlier;hadColumbusgoneintotheChurchinsteadofgoingtosea;hadShakespearebeenapprenticedtoacobblerorchimney-sweep;hadSirIsaacNewtonbeenassignedbyfatetheeducationandthetoilofanagriculturallaborer;hadDr.AdamSmithbeenborninthecoalhews,orHerbertSpencerforcedtogethislivingasafactoryoperative,whatwouldtheirtalentshaveavailed?Buttherewouldhavebeen,itwillbesaid,otherCæsarsorNapoleons,ColumbusesorShakespeares,Newtons,SmithsorSpencers.Thisistrue.Anditshowsbowprolificisourhumannature.Asthecommonworkerisonneedtransformedintoqueenbee,so,whencircumstancesfavorhisdevelopment,whatmightotherwisepassforacommonmanrisesintoaheroorleader,discovererorteacher,sageorsaint.Sowidelyhasthesowerscatteredtheseed,sostrongisthegerminativeforcethatbidsitbudandblossom.But,alas,forthestonyground,andthebirdsandthetares!Foronewhoattainshisfullstature,howmanyarestuntedanddeformed.

Thewillwithinusistheultimatefactofconsciousness.Yethowlittlehavethebestofus,inacquirements,inposition,evenincharacter,thatmaybecreditedentirelytoourselves;howmuchtotheinfluencesthathavemoldedus.Whoisthere,wise,learned,discreet,orstrong,whomightnot,werehetotracetheinnerhistoryofhislife,turn,liketheStoicEmperor,togivethankstothegods,thatbythisoneandthatone,andhereandthere,goodexampleshavebeensethim,noblethoughtshavereachedhim,andhappyopportunitiesopenedbeforehim.Whoisthere,who,withhiseyesabouthim,hasreachedthemeridianoflife,whohasnotsometimesechoedthethoughtofthepiousEnglishman,asthecriminalpassedtothegallows,”ButforthegraceofGod,theregoI.“Howlittledoeshereditycountascomparedwithconditions.Thisone,wesay,istheresultofathousandyearsofEuropeanprogress,andthatoneofathousandyearsofChinesepetrifaction;yet,placedaninfantintheheartofChina,andbutfortheangleoftheeyeortheshadeofthehairtheCaucasianwouldgrowupasthosearoundhim,usingthesamespeech,thinkingthesamethoughts,exhibitingthesametastes.ChangeLadyVeredeVereinhercradlewithaninfantoftheslums,andwillthebloodofahundredearlsgiveyouarefinedandculturedwoman?

Toremovewantandthefearofwant,togivetoallclassesleisure,andcomfort,andindependence,thedecenciesandrefinementsoflife,theopportunitiesofmentalandmoraldevelopment,wouldbeliketurningwaterintoadesert.Thesterilewastewouldclotheitselfwithverdure,andthebarrenplaceswherelifeseemedbannedwoulderelongbedappledwiththeshadeoftreesandmusicalwiththesongofbirds.Talentsnowhidden,virtuesunsuspected,wouldcomeforthtomakehumanlifericher,fuller,happier,nobler.Forintheseroundmenwhoarestuckintothree-corneredholes,andthree-corneredmenwhoarejammedintoroundholes;inthesemenwhoarewastingtheirenergiesinthescrambletoberich;inthesewhoinfactoriesareturnedintomachines,orarechainedbynecessitytobenchorplow;inthesechildrenwhoaregrowingupinsqualor,andvice,andignorance,arepowersofthehighestorder,talentsthemostsplendid.Theyneedbuttheopportunitytobringthemforth.

Considerthepossibilitiesofastateofsocietythatgavethatopportunitytoall.Letimaginationfilloutthepicture;Itscolorsgrowtoobrightforwordstopaint.Considerthemoralelevation,theintellectualactivity,thesociallife.Considerhowbyathousandactionsandinteractionsthemembersofeverycommunityarelinkedtogether,andhowinthepresentconditionofthingseventhefortunatefewwhostandupontheapexofthesocialpyramidmustsuffer,thoughtheyknowitnot,fromthewant,ignorance,anddegradationthatareunderneath.ConsiderthesethingsandthensaywhetherthechangeIproposewouldnotbeforthebenefitofeveryone—eventhegreatestlandholder?Wouldhenotbesaferofthefutureofhischildreninleavingthempennilessinsuchastateofsocietythaninleavingthemthelargestfortuneinthis?Didsuchastateofsocietyanywhereexist,wouldhenotbuyentrancetoitcheaplybygivingupallhispossessions?

Ihavenowtracedtotheirsourcesocialweaknessanddisease.Ihaveshowntheremedy.Ihavecoveredeverypointandmeteveryobjection.Buttheproblemsthatwehavebeenconsidering,greatastheyare,passintoproblemsgreateryet—intothegrandestproblemswithwhichthehumanmindcangrapple.Iamabouttoaskthereaderwhohasgonewithmesofar,togowithmefurther,intostillhigherfields.ButIaskhimtorememberthatinthelittlespacewhichremainsofthelimitstowhichthisbookmustbeconfined,Icannotfullytreatthequestionswhicharise.Icanbutsuggestsomethoughts,whichmay,perhaps,serveashintsforfurtherthought.

BookXTheLawofHumanProgress

ChapterI.TheCurrentTheoryofHumanProgress—ItsInsufficiencyChapterII.DifferencesinCivilization—ToWhatDueChapterIII.TheLawofHumanProgressChapterIV.HowModernCivilizationMayDecline

ChapterV.TheCentralTruth

WhatinmeisdarkIllumine,whatislowraiseandsupport;ThattotheheightofthisgreatargumentImayasserteternalProvidenceAndjustifythewaysofGodtomen.

—Milton.

[BacktoTableofContents]

ChapterITheCurrentTheoryofHumanProgress—ItsInsufficiency

Iftheconclusionsatwhichwehavearrivedarecorrect,theywillfallunderalargergeneralization.

Letus,therefore,recommenceourinquiryfromahigherstandpoint,whencewemaysurveyawiderfield.

Whatisthelawofhumanprogress?

Thisisaquestionwhich,wereitnotforwhathasgonebefore,IshouldhesitatetoreviewinthebriefspaceIcannowdevotetoit,asitinvolves,directlyorindirectly,someoftheveryhighestproblemswithwhichthehumanmindcanengage.Butitisaquestionwhichnaturallycomesup.Areorarenottheconclusionstowhichwehavecomeconsistentwiththegreatlawunderwhichhumandevelopmentgoeson?

Whatisthatlaw?Wemustfindtheanswertoourquestion;forthecurrentphilosophy,thoughitclearlyrecognizestheexistenceofsuchalaw,givesnomoresatisfactoryaccountof,itthanthecurrentpoliticaleconomydoesofthepersistenceofwantamidadvancingwealth.

Letus,asfaraspossible,keeptothefirmgroundoffacts.Whethermanwasorwasnotgraduallydevelopedfromananimal,itisnotnecessarytoinquire.Howeverintimatemaybetheconnectionbetweenquestionswhichrelatetomanasweknowhimandquestionswhichrelatetohisgenesis,itisonlyfromtheformeruponthelatterthatlightcanbethrown.Inferencecannotproceedfromtheunknowntotheknown.Itisonlyfromfactsofwhichwearecognizantthatwecaninferwhathasprecededcognizance.

Howevermanmayhaveoriginated,allweknowofhimisasman—justasheisnowtobefound.Thereisnorecordortraceofhiminanylowerconditionthanthatinwhichsavagesarestilltobemet.Bywhateverbridgehemayhavecrossedthewidechasmwhichnowseparateshimfromthebrutes,thereremainofitnovestiges.Betweenthelowestsavagesofwhomweknowandthehighestanimals,thereisanirreconcilabledifference—adifferencenotmerelyofdegree,butofkind.Manyofthecharacteristics,actions,andemotionsofmanareexhibitedbytheloweranimals;butman,nomatterhowlowinthescaleofhumanity,hasneveryetbeenfounddestituteofonethingofwhichnoanimalshowstheslightesttrace,aclearlyrecognizablebutalmostundefinablesomething,whichgiveshimthepowerofimprovement—whichmakeshimtheprogressiveanimal.

Thebeaverbuildsadam,andthebirdanest,andthebeeacell;butwhilebeavers’dams,andbirds’nests,andbees’cellsarealwaysconstructedonthesamemodel,thehouseofthemanpassesfromtherudehutofleavesandbranchestothemagnificentmansionrepletewithmodernconveniences.Thedogcantoacertainextentconnectcauseandeffect,andmaybetaughtsometricks;buthiscapacityintheserespectshasnotbeenawhitincreasedduringalltheageshehasbeentheassociateofimprovingman,andthedogofcivilizationisnotawhitmoreaccomplishedorIntelligentthanthedogofthewanderingsavage.Weknowofnoanimalthatusesclothes,thatcooksitsfood,thatmakesitselftoolsorweapons,thatbreedsotheranimalsthatitwishestoeat,orthathasanarticulatelanguage.Butmenwhodonotdosuchthingshaveneveryetbeenfound,orheardof,exceptinfable.Thatistosay,man,whereverweknowhim,exhibitsthispower—ofsupplementingwhatnaturehasdoneforhimbywhathedoesforhimself;and,infact,soinferioristhephysicalendowmentofman,thatthereisnopartoftheworld,saveperhapssomeofthesmallislandsofthePacific,wherewithoutthisfacultyhecouldmaintainanexistence.

Maneverywhereandatalltimesexhibitsthisfaculty—everywhereandat

alltimesofwhichwehaveknowledgehehasmadesomeuseofit.Butthedegreeinwhichthishasbeendonegreatlyvaries.Betweentherudecanoeandthesteamship;betweentheboomerangandtherepeatingrifle;betweentheroughlycarvedwoodenidolandthebreathingmarbleofGrecianart;betweensavageknowledgeandmodernscience;betweenthewildIndianandthewhitesettler;betweentheHottentotwomanandthebelleofpolishedsociety,thereisanenormousdifference.

Thevaryingdegreesinwhichthisfacultyisusedcannotbeascribedtodifferencesinoriginalcapacity—themosthighlyimprovedpeoplesofthepresentdayweresavageswithinhistorictimes,andwemeetwiththewidestdifferencesbetweenpeoplesofthesamestock.Norcantheybewhollyascribedtodifferencesinphysicalenvironment—thecradlesoflearningandtheartsarenowinmanycasestenantedbybarbarians,andwithinafewyearsgreatcitiesriseonthehuntinggroundsofwildtribes.Allthesedifferencesareevidentlyconnectedwithsocialdevelopment.Beyondperhapstheveriestrudiments,itbecomespossibleformantoimproveonlyasheliveswithhisfellows.Alltheseimprovements,therefore,inman’spowersandconditionswesummarizeinthetermcivilization.Menimproveastheybecomecivilized,orlearntoco-operateinsociety.

Whatisthelawofthisimprovement?Bywhatcommonprinciplecanweexplainthedifferentstagesofcivilizationatwhichdifferentcommunitieshavearrived?Inwhatconsistsessentiallytheprogressofcivilization,sothatwemaysayofvaryingsocialadjustments,thisfavorsit,andthatdoesnot;orexplainwhyaninstitutionorconditionwhichmayatonetimeadvanceitmayatanothertimeretardit?

Theprevailingbeliefnowis,thattheprogressofcivilizationisadevelopmentorevolution,inthecourseofwhichman’spowersareincreasedandhisqualitiesimprovedbytheoperationofcausessimilartothosewhicharerelieduponasexplainingthegenesisofspecies—viz.,thesurvivalofthefittestandthehereditarytransmissionofacquired

qualities.

Thatcivilizationisanevolution—thatitis,inthelanguageofHerbertSpencer,aprogressfromanindefinite,incoherenthomogeneitytoadefinite,coherentheterogeneity—thereisnodoubt;buttosaythisisnottoexplainoridentifythecauseswhichforwardorretardit.HowfarthesweepinggeneralizationsofSpencer,whichseektoaccountforallphenomenaundertermsofmatterandforce,may,properlyunderstood,includeallthesecauses,Iamunabletosay;but,asscientificallyexpounded,thedevelopmentphilosophyhaseithernotyetdefinitelymetthisquestion,orhasgivenbirth,orrathercoherency,toanopinionwhichdoesnotaccordwiththefacts.

Thevulgarexplanationofprogressis,Ithink,verymuchliketheviewnaturallytakenbythemoneymakerofthecausesoftheunequaldistributionofwealth.Histheory,ifhehasone,usuallyis,thatthereisplentyofmoneytobemadebythosewhohavewillandability,andthatitisignorance,oridleness,orextravagance,thatmakesthedifferencebetweentherichandthepoor.Andsothecommonexplanationofdifferencesofcivilizationisofdifferencesincapacity.Thecivilizedracesarethesuperiorraces,andadvanceincivilizationisaccordingtothissuperiority—justasEnglishvictorieswere,incommonEnglishopinion,duetothenaturalsuperiorityofEnglishmentofrog-eatingFrenchmen;andpopulargovernment,activeinvention,andgreateraveragecomfortare,orwereuntillately,incommonAmericanopinion,duetothegreater”smartnessoftheYankeeNation.“

Now,justasthepolitico-economicdoctrineswhichinthebeginningofthisinquirywemetanddisproved,harmonizewiththecommonopinionofmenwhoseecapitalistspayingwagesandcompetitionreducingwages;justastheMalthusiantheoryharmonizedwithexistingprejudicesbothoftherichandthepoor;sodoestheexplanationofprogressasagradualraceimprovementharmonizewiththevulgaropinionwhichaccountsbyracedifferencesfordifferencesincivilization.Ithasgiven

coherenceandascientificformulatoopinionswhichalreadyprevailed.ItswonderfulspreadsincethetimeDarwinfirststartledtheworldwithhis”OriginofSpecies“hasnotbeensomuchaconquestasanassimilation.

Theviewwhichnowdominatestheworldofthoughtisthis:Thatthestruggleforexistence,justinproportionasitbecomesintense,impelsmentoneweffortsandinventions.Thatthisimprovementandcapacityforimprovementisfixedbyhereditarytransmission,andextendedbythetendencyofthebestadaptedindividual,ormostimprovedindividual,tosurviveandpropagateamongindividuals,andofthebestadapted,ormostimprovedtribe,nation,orracetosurviveinthestrugglebetweensocialaggregates.Onthistheorythedifferencesbetweenmanandtheanimals,anddifferencesintherelativeprogressofmen,arenowexplainedasconfidently,andallbutasgenerally,asalittlewhileagotheywereexplaineduponthetheoryofspecialcreationanddivineinterposition.

Thepracticaloutcomeofthistheoryisinasortofhopefulfatalism,ofwhichcurrentliteratureisfull.Inthisview,progressistheresultofforceswhichworkslowly,steadily,andremorselessly,fortheelevationofman.War,slavery,tyranny,superstition,famine,andpestilence,thewantandmiserywhichfesterinmoderncivilization,aretheimpellingcauseswhichdrivemanon,byeliminatingpoorertypesandextendingthehigher;andhereditarytransmissionisthepowerbywhichadvancesarefixed,andpastadvancesmadethefootingfornewadvances.Theindividualistheresultofchangesthusimpresseduponandperpetuatedthroughalongseriesofpastindividuals,andthesocialorganizationtakesitsformfromtheindividualsofwhichitiscomposed.Thus,whilethistheoryis,asHerbertSpencersays—“radicaltoadegreebeyondanythingwhichcurrentradicalismconceives,”inasmuchasitlooksforchangesintheverynatureofman;itisatthesametime“conservativetoadegreebeyondanythingconceivedbycurrentconservatism,”inasmuchasitholdsthatnochangecanavailsavetheseslowchangesinmen’snatures.

Philosophersmayteachthatthisdoesnotlessenthedutyofendeavoringtoreformabuses,justasthetheologianswhotaughtpredestinarianisminsistedonthedutyofalltostruggleforsalvation;but,asgenerallyapprehended,theresultisfatalism—“dowhatwemay,themillsofthegodsgrindonregardlesseitherofouraidorourhindrance.”IalludetothisonlytoillustratewhatItaketobetheopinionnowrapidlyspreadingandpermeatingcommonthought;notthatinthesearchfortruthanyregardforitseffectsshouldbepermittedtobiasthemind.ButthisItaketobethecurrentviewofcivilization:Thatitistheresultofforces,operatinginthewayindicated,whichslowlychangethecharacter,andimproveandelevatethepowersofman;thatthedifferencebetweencivilizedmanandsavageisofalongraceeducation,whichhasbecomepermanentlyfixedinmentalorganization;andthatthisimprovementtendstogoonincreasingly,toahigherandhighercivilization.Wehavereachedsuchapointthatprogressseemstobenaturalwithus,andwelookforwardconfidentlytothegreaterachievementsofthecomingrace—someevenholdingthattheprogressofsciencewillfinallygivemenimmortalityandenablethemtomakebodilythetournotonlyoftheplanets,butofthefixedstars,andatlengthtomanufacturesunsandsystemsforthemselves.

Butwithoutsoaringtothestars,themomentthatthistheoryofprogression,whichseemssonaturaltousamidanadvancingcivilization,looksaroundtheworld,itcomesagainstanenormousfact—thefixed,petrifiedcivilizations.Themajorityofthehumanraceto-dayhavenoideaofprogress;themajorityofthehumanraceto-daylook(asuntilafewgenerationsagoourownancestorslooked)uponthepastasthetimeofhumanperfection.Thedifferencebetweenthesavageandthecivilizedmanmaybeexplainedonthetheorythattheformerisasyetsoimperfectlydevelopedthathisprogressishardlyapparent;buthow,uponthetheorythathumanprogressistheresultofgeneralandcontinuouscauses,shallweaccountforthecivilizationsthathadprogressedsofarandthenstopped?ItcannotbesaidoftheHindooandoftheChinaman,asitmaybesaidofthesavage,thatoursuperiorityistheresultofa

longereducation;thatweare,asitwere,thegrownmenofnature,whiletheyarethechildren.TheHindoosandtheChinesewerecivilizedwhenweweresavages.Theyhadgreatcities,highlyorganizedandpowerfulgovernments,literatures,philosophies,polishedmanners,considerabledivisionoflabor,largecommerce,andelaboratearts,whenourancestorswerewanderingbarbarians,livinginhutsandskintents,notawhitfurtheradvancedthantheAmericanIndians.WhilewehaveprogressedfromthissavagestatetoNineteenthCenturycivilization,theyhavestoodstill.Ifprogressbetheresultoffixedlaws,inevitableandeternal,whichimpelmenforward,howshallweaccountforthis?

Oneofthebestpopularexpoundersofthedevelopmentphilosophy,WalterBagehot(“PhysicsandPolitics”),admitstheforceofthisobjection,andendeavorsinthiswaytoexplainit:Thatthefirstthingnecessarytocivilizemanistotamehim;toinducehimtoliveinassociationwithhisfellowsinsubordinationtolaw;andhenceabodyor“cake”oflawsandcustomsgrowsup,beingintensifiedandextendedbynaturalselection,thetribeornationthusboundtogetherhavinganadvantageoverthosewhoarenot.Thatthiscakeofcustomandlawfinallybecomestoothickandhardtopermitfurtherprogress,whichcangoononlyascircumstancesoccurwhichintroducediscussion,andthuspermitthefreedomandmobilitynecessarytoimprovement.

Thisexplanation,whichMr.Bagehotoffers,ashesays,withsomemisgivings,isIthinkattheexpenseofthegeneraltheory.Butitisnotworthwhilespeakingofthat,forit,manifestly,doesnotexplainthefacts.

ThehardeningtendencyofwhichMr.Bagehotspeakswouldshowitselfataveryearlyperiodofdevelopment,andhisillustrationsofitarenearlyalldrawnfromsavageorsemi-savagelife.Whereas,thesearrestedcivilizationshadgonealongdistancebeforetheystopped.Theremusthavebeenatimewhentheywereveryfaradvancedascomparedwiththesavagestate,andwereyetplastic,free,andadvancing.Thesearrestedcivilizationsstoppedatapointwhichwashardlyinanythinginferiorand

inmanyrespectssuperiortoEuropeancivilizationof,say,thesixteenthoratanyratethefifteenthcentury.Uptothatpointthentheremusthavebeendiscussion,thehailingofwhatwasnew,andmentalactivityofallsorts.Theyhadarchitectswhocarriedtheartofbuilding,necessarilybyaseriesofinnovationsorimprovements,uptoaveryhighpoint;shipbuilderswhointhesameway,byinnovationafterinnovation,finallyproducedasgoodavesselasthewarshipsofHenryVIII;inventorswhostoppedonlyonthevergeofourmostimportantimprovements,andfromsomeofwhomwecanyetlearn;engineerswhoconstructedgreatirrigationworksandnavigablecanals;rivalschoolsofphilosophyandconflictingideasofreligion.Onegreatreligion,inmanyrespectsresemblingChristianity,roseinIndia,displacedtheoldreligion,passedintoChina,sweepingoverthatcountry,andwasdisplacedagaininitsoldseats,justasChristianitywasdisplacedinitsfirstseats.Therewaslife,andactivelife,andtheinnovationthatbegetsimprovement,longaftermenhadlearnedtolivetogether.And,moreover,bothIndiaandChinahavereceivedtheinfusionofnewlifeinconqueringraces,withdifferentcustomsandmodesofthought.

ThemostfixedandpetrifiedofallcivilizationsofwhichweknowanythingwasthatofEgypt,whereevenartfinallyassumedaconventionalandinflexibleform.Butweknowthatbehindthismusthavebeenatimeoflifeandvigor—afreshlydevelopingandexpandingcivilization,suchasoursisnow—ortheartsandsciencescouldneverhavebeencarriedtosuchapitch.AndrecentexcavationshavebroughttolightfrombeneathwhatwebeforeknewofEgyptanearlierEgyptstill—instatuesandcarvingswhich,insteadofahardandformaltype,beamwithlifeandexpression,whichshowartstruggling,ardent,natural,andfree,thesureindicationofanactiveandexpandinglife.Soitmusthavebeenoncewithallnowunprogressivecivilizations.

Butitisnotmerelythesearrestedcivilizationsthatthecurrenttheoryofdevelopmentfallstoaccountfor.Itisnotmerelythatmenhavegonesofaronthepathofprogressandthenstopped;itisthatmenhavegonefar

onthepathofprogressandthengoneback.Itisnotmerelyanisolatedcasethatthusconfrontsthetheory—itistheuniversalrule.Everycivilizationthattheworldhasyetseenhashaditsperiodofvigorousgrowth,ofarrestandstagnation;itsdeclineandfall.Ofallthecivilizationsthathavearisenandflourished,thereremainto-daybutthosethathavebeenarrested,andourown,whichisnotyetasoldaswerethepyramidswhenAbrahamlookeduponthem—whilebehindthepyramidsweretwentycenturiesofrecordedhistory.

Thatourowncivilizationhasabroaderbase,isofamoreadvancedtype,movesquickerandsoarshigherthananyprecedingcivilizationisundoubtedlytrue;butintheserespectsitishardlymoreinadvanceoftheGreco-RomancivilizationthanthatwasinadvanceofAsiaticcivilization;andifitwere,thatwouldprovenothingastoitspermanenceandfutureadvance,unlessitbeshownthatitissuperiorinthosethingswhichcausedtheultimatefailureofitspredecessors.Thecurrenttheorydoesnotassumethis.

Intruth,nothingcouldbefurtherfromexplainingthefactsofuniversalhistorythanthistheorythatcivilizationistheresultofacourseofnaturalselectionwhichoperatestoimproveandelevatethepowersofman.Thatcivilizationhasarisenatdifferenttimesindifferentplacesandhasprogressedatdifferentrates,isnotinconsistentwiththistheory;forthatmightresultfromtheunequalbalancingofimpellingandresistingforces;butthatprogresseverywherecommencing,forevenamongthelowesttribesitisheldthattherehasbeensomeprogress,hasnowherebeencontinuous,buthaseverywherebeenbroughttoastandorretrogression,isabsolutelyinconsistent.Forifprogressoperatedtofixanimprovementinman’snatureandthustoproducefurtherprogress,thoughtheremightbeoccasionalinterruption,yetthegeneralrulewouldbethatprogresswouldbecontinuous—thatadvancewouldleadtoadvance,andcivilizationdevelopintohighercivilization.

Notmerelythegeneralrule,buttheuniversalrule,isthereverseofthis.

Theearthisthetombofthedeadempires,nolessthanofdeadmen.Insteadofprogressfittingmenforgreaterprogress,everycivilizationthatwasinitsowntimeasvigorousandadvancingasoursisnow,hasofitselfcometoastop.Overandoveragain,arthasdeclined,learningsunk,powerwaned,populationbecomesparse,untilthepeoplewhohadbuiltgreattemplesandmightycities,turnedriversandpiercedmountains,cultivatedtheearthlikeagardenandintroducedtheutmostrefinementintotheminuteaffairsoflife,remainedbutinaremnantofsqualidbarbarians,whohadlosteventhememoryofwhattheirancestorshaddone,andregardedthesurvivingfragmentsoftheirgrandeurastheworkofgenii,orofthemightyracebeforetheflood.Sotrueisthis,thatwhenwethinkofthepast,itseemsliketheinexorablelaw,fromwhichwecannomorehopetobeexemptthantheyoungmanwho“feelshislifeineverylimb”canhopetobeexemptfromthedissolutionwhichisthecommonfateofall.“Eventhis,ORome,mustonedaybethyfate!”weptScipioovertheruinsofCarthage,andMacaulay’spictureoftheNewZealandermusinguponthebrokenarchofLondonBridgeappealstotheimaginationofeventhosewhoseecitiesrisinginthewildernessandhelptolaythefoundationsofnewempire.Andso,whenweerectapublicbuildingwemakeahollowinthelargestcornerstoneandcarefullysealwithinitsomemementosofourday,lookingforwardtothetimewhenourworksshallberuinsandourselvesforgot.

Norwhetherthisalternateriseandfallofcivilization,thisretrogressionthatalwaysfollowsprogression,be,orbenot,therhythmicmovementofanascendingline(andIthink,thoughIwillnotopenthequestion,thatitwouldbemuchmoredifficulttoprovetheaffirmativethanisgenerallysupposed)makesnodifference;forthecurrenttheoryisineithercasedisproved.Civilizationshavediedandmadenosign,andhard-wonprogresshasbeenlosttotheraceforever;but,evenifitbeadmittedthateachwaveofprogresshasmadepossibleahigherwaveandeachcivilizationpassedthetorchtoagreatercivilization,thetheorythatcivilizationadvancesbychangeswroughtinthenatureofmanfailstoexplainthefacts;forineverycaseitisnottheracethathasbeen

educatedandhereditarilymodifiedbytheoldcivilizationthatbeginsthenew,butafreshracecomingfromalowerlevel.Itisthebarbariansoftheoneepochwhohavebeenthecivilizedmenofthenext;tobeintheirturnsucceededbyfreshbarbarians.Forithasbeenheretoforealwaysthecasethatmenundertheinfluencesofcivilization,thoughatfirstimproving,afterwarddegenerate.Thecivilizedmanofto-dayisvastlythesuperioroftheuncivilized;butsointhetimeofitsvigorwasthecivilizedmanofeverydeadcivilization.Buttherearesuchthingsasthevices,thecorruptions,theenervationsofcivilization,whichpastacertainpointhavealwaysheretoforeshownthemselves.Everycivilizationthathasbeenoverwhelmedbybarbarianshasreallyperishedfrominternaldecay.

Thisuniversalfact,themomentthatitisrecognized,disposesofthetheorythatprogressisbyhereditarytransmission.Lookingoverthehistoryoftheworld,thelineofgreatestadvancedoesnotcoincideforanylengthoftimewithanylineofheredity.Onanyparticularlineofheredity,retrogressionseemsalwaystofollowadvance.

Shallwethereforesaythatthereisanationalorracelife,asthereisanindividuallife—thateverysocialaggregatehas,asitwere,acertainamountofenergy,theexpenditureofwhichnecessitatesdecay?Thisisanoldandwidespreadidea,thatisyetlargelyheld,andthatmaybeconstantlyseencroppingoutincongruouslyinthewritingsoftheexpoundersofthedevelopmentphilosophy.Indeed,Idonotseewhyitmaynotbestatedintermsofmatterandofmotionsoastobringitclearlywithinthegeneralizationsofevolution.Forconsideringitsindividualsasatoms,thegrowthofsocietyis“anintegrationofmatterandconcomitantdissipationofmotion;duringwhichthematterpassesfromanindefinite,incoherenthomogeneitytoadefinite,coherentheterogeneity,andduringwhichtheretainedmotionundergoesaparalleltransformation.”Andthusananalogymaybedrawnbetweenthelifeofasocietyandthelifeofasolarsystemuponthenebularhypothesis.Astheheatandlightofthesunareproducedbytheaggregationofatoms

evolvingmotion,whichfinallyceaseswhentheatomsatlengthcometoastateofequilibriumorrest,andastateofimmobilitysucceeds,whichcanbebrokeninagainonlybytheimpactofexternalforces,whichreversetheprocessofevolution,integratingmotionanddissipatingmatterintheformofgas,againtoevolvemotionbyitscondensation;so,itmaybesaid,doestheaggregationofindividualsinacommunityevolveaforcewhichproducesthelightandwarmthofcivilization,butwhenthisprocessceasesandtheindividualcomponentsarebroughtintoastateofequilibrium,assumingtheirfixedplaces,petrifactionensues,andthebreakingupanddiffusioncausedbyanincursionofbarbariansisnecessarytotherecommencementoftheprocessandanewgrowthofcivilization.

Butanalogiesarethemostdangerousmodesofthought.Theymayconnectresemblancesandyetdisguiseorcoverupthetruth.Andallsuchanalogiesaresuperficial.Whileitsmembersareconstantlyreproducedinallthefreshvigorofchildhood,acommunitycannotgrowold,asdoesaman,bythedecayofitspowers.Whileitsaggregateforcemustbethesumoftheforcesofitsindividualcomponents,acommunitycannotlosevitalpowerunlessthevitalpowersofitscomponentsarelessened.

Yetinboththecommonanalogywhichlikensthelifepowerofanationtothatofanindividual,andintheoneIhavesupposed,lurkstherecognitionofanobvioustruth—thetruththattheobstacleswhichfinallybringprogresstoahaltareraisedbythecourseofprogress;thatwhathasdestroyedallpreviouscivilizationshasbeentheconditionsproducedbythegrowthofcivilizationitself.

Thisisatruthwhichinthecurrentphilosophyisignored;butitisatruthmostpregnant.Anyvalidtheoryofhumanprogressmustaccountforit.

Insemi-scientificorpopularizedformthismayperhapsbeseeninbest,becausefrankest,expressionin”TheMartyrdomofMan,“byWinwoodReade,awriterofsingularvividnessandpower.Thisbookisinrealitya

historyofprogress,or,rather,amonographuponitscausesandmethods,andwillwellrepayperusalforitsvividpictures,whatevermaybethoughtofthecapacityoftheauthorforphilosophicgeneralization.Theconnectionbetweensubjectandtitlemaybeseenbytheconclusion:”Igivetouniversalhistoryastrangebuttruetitle—TheMartyrdomofMan.Ineachgenerationthehumanracehasbeentorturedthattheirchildrenmightprofitbytheirwoes.Ourownprosperityisfoundedontheagoniesofthepast.Isitthereforeunjustthatwealsoshouldsufferforthebenefitofthosewhoaretocome?“

“TheStudyofSociology”—Conclusion.

WinwoodReade,“TheMartyrdomofMan.”

HerbertSpencer’sdefinitionofEvolution,“FirstPrinciples,”p.396.

[BacktoTableofContents]

ChapterIIDifferencesinCivilization—ToWhatDue

Inattemptingtodiscoverthelawofhumanprogress,thefirststepmustbetodeterminetheessentialnatureofthesedifferenceswhichwedescribeasdifferencesincivilization.

Thatthecurrentphilosophy,whichattributessocialprogresstochangeswroughtinthenatureofman,doesnotaccordwithhistoricalfacts,wehavealreadyseen.Andwemayalsosee,ifweconsiderthem,thatthedifferencesbetweencommunitiesindifferentstagesofcivilizationcannotbeascribedtoinnatedifferencesintheindividualswhocomposethesecommunities.Thattherearenaturaldifferencesistrue,andthatthereissuchathingashereditarytransmissionofpeculiaritiesisundoubtedlytrue;butthegreatdifferencesbetweenmenindifferentstatesofsocietycannotbeexplainedinthisway.Theinfluenceofheredity,whichitisnowthefashiontoratesohighly,isasnothingcomparedwiththeinfluenceswhichmoldthemanafterhecomesintotheworld.Whatismoreingrainedinhabitthanlanguage,whichbecomesnotmerelyanautomatictrickofthemuscles,butthemediumofthought?Whatpersistslonger,orwillquickershownationality?Yetwearenotbornwithapredispositiontoanylanguage.Ourmothertongueisourmothertongueonlybecausewelearneditininfancy.Althoughhisancestorshavethoughtandspokeninonelanguageforcountlessgenerations,achildwhohearsfromthefirstnothingelse,willlearnwithequalfacilityanyothertongue.Andsoofothernationalorlocalorclasspeculiarities.Theyseemtobemattersofeducationandhabit,notoftransmission.CasesofwhitechildrencapturedbyIndiansininfancyandbroughtupinthewigwamshowthis.TheybecomethoroughIndians.Andso,Ibelieve,withchildrenbroughtupbyGypsies.

ThatthisisnotsotrueofthechildrenofIndiansorotherdistinctly

markedracesbroughtupbywhitesis,Ithink,duetothefactthattheyarenevertreatedpreciselyaswhitechildren.Agentlemanwhohadtaughtacoloredschooloncetoldmethathethoughtthecoloredchildren,uptotheageoftenortwelve,werereallybrighterandlearnedmorereadilythanwhitechildren,butthatafterthatagetheyseemedtogetdullandcareless.Hethoughtthisproofofinnateraceinferiority,andsodidIatthetime.ButIafterwardheardahighlyintelligentnegrogentleman(BishopHillery)incidentallymakearemarkwhichtomymindseemsasufficientexplanation.Hesaid:“Ourchildren,whentheyareyoung,arefullyasbrightaswhitechildren,andlearnasreadily.Butassoonastheygetoldenoughtoappreciatetheirstatus—torealizethattheyarelookeduponasbelongingtoaninferiorrace,andcanneverhopetobeanythingmorethancooks,waiters,orsomethingofthatsort,theylosetheirambitionandceasetokeepup.”Andtothishemighthaveadded,thatbeingthechildrenofpoor,uncultivatedandunambitiousparents,homeinfluencestoldagainstthem.For,Ibelieveitisamatterofcommonobservationthatintheprimarypartofeducationthechildrenofignorantparentsarequiteasreceptiveasthechildrenofintelligentparents,butbyandbythelatter,asageneralrule,pullaheadandmakethemostintelligentmenandwomen.Thereasonisplain.Astothefirstsimplethingswhichtheylearnonlyatschool,theyareonapar,butastheirstudiesbecomemorecomplex,thechildwhoathomeisaccustomedtogoodEnglish,hearsintelligentconversation,hasaccesstobooks,cangetquestionsanswered,etc.,hasanadvantagewhichtells.

Thesamethingmaybeseenlaterinlife.Takeamanwhohasraisedhimselffromtheranksofcommonlabor,andjustasheisbroughtintocontactwithmenofcultureandmenofaffairs,willhebecomemoreintelligentandpolished.Taketwobrothers,thesonsofpoorparents,broughtupinthesamehomeandinthesameway.Oneisputtoarudetrade,andnevergetsbeyondthenecessityofmakingalivingbyharddailylabor;theother,commencingasanerrandboy,getsastartinanotherdirection,andbecomesfinallyasuccessfullawyer,merchant,orpolitician.Atfortyorfiftythecontrastbetweenthemwillbestriking,and

theunreflectingwillcreditittothegreaternaturalabilitywhichhasenabledtheonetopushhimselfahead.Butjustasstrikingadifferenceinmannersandintelligencewillbemanifestedbetweentwosisters,oneofwhom,marriedtoamanwhohasremainedpoor,hasherlifefrettedwithpettycaresanddevoidofopportunities,andtheotherofwhomhasmarriedamanwhosesubsequentpositionbringsherintoculturedsocietyandopenstoheropportunitieswhichrefinetasteandexpandintelligence.Andsodeteriorationsmaybeseen.That“evilcommunicationscorruptgoodmanners”isbutanexpressionofthegenerallawthathumancharacterisprofoundlymodifiedbyitsconditionsandsurroundings.

Irememberonceseeing,inaBrazilianseaport,anegromandressedinwhatwasanevidentattemptattheheightoffashion,butwithoutshoesandstockings.OneofthesailorswithwhomIwasincompany,andwhohadmadesomerunsintheslavetrade,hadatheorythatanegrowasnotaman,butasortofmonkey,andpointedtothisasevidenceinproof,contendingthatitwasnotnaturalforanegrotowearshoes,andthatinhiswildstatehewouldwearnoclothesatall.Iafterwardlearnedthatitwasnotconsidered“thething”thereforslavestowearshoes,justasinEnglanditisnotconsideredthethingforafaultlesslyattiredbutlertowearjewelry,thoughforthatmatterIhavesinceseenwhitemenatlibertytodressastheypleasedgetthemselvesupasincongruouslyastheBrazilianslave.ButagreatmanyofthefactsadducedasshowinghereditarytransmissionhavereallynomorebearingthanthisofourforecastleDarwinian.

That,forinstance,alargenumberofcriminalsandrecipientsofpublicreliefinNewYorkhavebeenshowntohavedescendedfromapauperthreeorfourgenerationsbackisextensivelycitedasshowinghereditarytransmission.Butitshowsnothingofthekind,inasmuchasanadequateexplanationofthefactsisnearer.Pauperswillraisepaupers,evenifthechildrenbenottheirown,justasfamiliarcontactwithcriminalswillmakecriminalsofthechildrenofvirtuousparents.Tolearntorelyoncharityisnecessarilytolosetheselfrespectandindependencenecessary

forself-reliancewhenthestruggleishard.Sotrueisthisthat,asiswellknown,charityhastheeffectofincreasingthedemandforcharity,anditisanopenquestionwhetherpublicreliefandprivatealmsdonotinthiswaydofarmoreharmthangood.Andsoofthedispositionofchildrentoshowthesamefeelings,tastes,prejudices,ortalentsastheirparents.Theyimbibethesedispositionsjustastheyimbibefromtheirhabitualassociates.Andtheexceptionsprovetherule,asdislikesorrevulsionsmaybeexcited.

Andthereis,Ithink,asubtlerinfluencewhichoftenaccountsforwhatarelookeduponasatavismsofcharacter—thesameinfluencethatmakestheboywhoreadsdimenovelswanttobeapirate.IonceknewagentlemaninwhoseveinsranthebloodofIndianchiefs.Heusedtotellmetraditionslearnedfromhisgrandfather,whichillustratedwhatisdifficultforawhitemantocomprehend—theIndianhabitofthought,theintensebutpatientbloodthirstofthetrail,andthefortitudeofthestake.Fromthewayinwhichhedweltonthese,Ihavenodoubtthatundercertaincircumstances,highlyeducated,civilizedmanthathewas,hewouldhaveshowntraitswhichwouldhavebeenlookedonasduetohisIndianblood;butwhichinrealitywouldhavebeensufficientlyexplainedbythebroodingsofhisimaginationuponthedeedsofhisancestors.

Inanylargecommunitywemaysee,asbetweendifferentclassesandgroups,differencesofthesamekindasthosewhichexistbetweencommunitieswhichwespeakofasdifferingincivilization—differencesofknowledge,belief,customs,tastes,andspeech,whichintheirextremesshowamongpeopleofthesamerace,livinginthesamecountry,differencesalmostasgreatasthosebetweencivilizedandsavagecommunities.Asallstagesofsocialdevelopment,fromthestoneageup,areyettobefoundincontemporaneouslyexistingcommunities,sointhesamecountryandinthesamecityaretobefound,sidebyside,groupswhichshowsimilardiversities.InsuchcountriesasEnglandandGermany,childrenofthesamerace,bornandrearedinthesameplace,willgrowup,speakingthelanguagedifferently,holdingdifferentbeliefs,

followingdifferentcustoms,andshowingdifferenttastes;andeveninsuchacountryastheUnitedStatesdifferencesofthesamekind,thoughnotofthesamedegree,maybeseenbetweendifferentcirclesorgroups.

Butthesedifferencesarecertainlynotinnate.NobabyisbornaMethodistorCatholic,todropitsh’sortosoundthem.Allthesedifferenceswhichdistinguishdifferentgroupsorcirclesarederivedfromassociationinthesecircles.

TheJanissariesweremadeupofyouthstornfromChristianparentsatanearlyage,buttheywerenonethelessfanaticalMoslemsandnonethelessexhibitedalltheTurkishtraits;theJesuitsandotherordersshowdistinctcharacter,butitiscertainlynotperpetuatedbyhereditarytransmissions;andevensuchassociationsasschoolsorregiments,wherethecomponentsremainbutashorttimeandareconstantlychanging,exhibitgeneralcharacteristics,whicharetheresultofmentalimpressionsperpetuatedbyassociation.

Now,itisthisbodyoftraditions,beliefs,customs,laws,habitsandassociations,whichariseineverycommunityandwhichsurroundeveryindividual—this“super-organicenvironment,”asHerbertSpencercallsit,that,asItakeit,isthegreatelementindeterminingnationalcharacter.Itisthis,ratherthanhereditarytransmission,whichmakestheEnglishmandifferfromtheFrenchman,theGermanfromtheItalian,theAmericanfromtheChinaman,andthecivilizedmanfromthesavageman.Itisinthiswaythatnationaltraitsarepreserved,extended,oraltered.

Withincertainlimits,or,ifyouchoose,withoutlimitsinitself,hereditarytransmissionmaydeveloporalterqualities,butthisismuchmoretrueofthephysicalthanofthementalpartofaman,andmuchmoretrueofanimalsthanitisevenofthephysicalpartofman.Deductionsfromthebreedingofpigeonsorcattlewillnotapplytoman,andthereasonisclear.Thelifeofman,eveninhisrudeststate,is

infinitelymorecomplex.Heisconstantlyactedonbyaninfinitelygreaternumberofinfluences,amidwhichtherelativeinfluenceofhereditybecomeslessandless.Araceofmenwithnogreatermentalactivitythantheanimals—menwhoonlyate,drank,slept,andpropagated—might,Idoubtnot,bycarefultreatmentandselectioninbreeding,bemade,incourseoftime,toexhibitasgreatdiversitiesinbodilyshapeandcharacterassimilarmeanshaveproducedinthedomesticanimals.Buttherearenosuchmen;andinmenastheyare,mentalinfluences,actingthroughtheminduponthebody,wouldconstantlyinterrupttheprocess.Youcannotfattenamanwhosemindisonthestrain,bycoopinghimupandfeedinghimasyouwouldfattenapig.Inallprobabilitymenhavebeenupontheearthlongerthanmanyspeciesofanimals.Theyhavebeenseparatedfromeachotherunderdifferencesofclimatethatproducethemostmarkeddifferencesinanimals,andyetthephysicaldifferencesbetweenthedifferentracesofmenarehardlygreaterthanthedifferencebetweenwhitehorsesandblackhorses—theyarecertainlynothinglikeasgreatasbetweendogsofthesamesubspecies,as,forinstance,thedifferentvarietiesoftheterrierorspaniel.Andeventhesephysicaldifferencesbetweenracesofmen,itisheldbythosewhoaccountforthembynaturalselectionandhereditarytransmission,werebroughtoutwhenmanwasmuchnearertheanimal—thatistosay,whenhehadlessmind.

Andifthisbetrueofthephysicalconstitutionofman,inhowmuchhigherdegreeisittrueofhismentalconstitution?Allourphysicalpartswebringwithusintotheworld;buttheminddevelopsafterward.

Thereisastageinthegrowthofeveryorganisminwhichitcannotbetold,exceptbytheenvironment,whethertheanimalthatistobewillbefishorreptile,monkeyorman.Andsowiththenew-borninfant;whetherthemindthatisyettoawaketoconsciousnessandpoweristobeEnglishorGerman,AmericanorChinese—themindofacivilizedmanorthemindofasavage—dependsentirelyonthesocialenvironmentinwhichitisplaced.

Takeanumberofinfantsbornofthemosthighlycivilizedparentsandtransportthemtoanuninhabitedcountry.Supposetheminsomemiraculouswaytobesustaineduntiltheycomeofagetotakecareofthemselves,andwhatwouldyouhave?Morehelplesssavagesthananyweknowof.Theywouldhavefiretodiscover;therudesttoolsandweaponstoinvent;languagetoconstruct.Theywould,inshort,havetostumbletheirwaytothesimplestknowledgewhichthelowestracesnowpossess,justasachildlearnstowalk.ThattheywouldintimedoallthesethingsIhavenottheslightestdoubt,forallthesepossibilitiesarelatentinthehumanmindjustasthepowerofwalkingislatentinthehumanframe,butIdonotbelievetheywoulddothemanybetterorworse,anyslowerorquicker,thanthechildrenofbarbarianparentsplacedinthesameconditions.Giventheveryhighestmentalpowersthatexceptionalindividualshaveeverdisplayed,andwhatcouldmankindbeifonegenerationwereseparatedfromthenextbyanintervaloftime,asaretheseventeen-yearlocusts?Onesuchintervalwouldreducemankind,nottosavagery,buttoaconditioncomparedwithwhichsavagery,asweknowit,wouldseemcivilization.

And,reversely,supposeanumberofsavageinfantscould,unknowntothemothers,foreventhiswouldbenecessarytomaketheexperimentafairone,besubstitutedforasmanychildrenofcivilization,canwesupposethatgrowinguptheywouldshowanydifference?Ithinknoonewhohasmixedmuchwithdifferentpeoplesandclasseswillthinkso.Thegreatlessonthatisthuslearnedisthat“humannatureishumannaturealltheworldover.”Andthislesson,too,maybelearnedinthelibrary.Ispeaknotsomuchoftheaccountsoftravelers,fortheaccountsgivenofsavagesbythecivilizedmenwhowritebooksareveryoftenjustsuchaccountsassavageswouldgiveofusdidtheymakeflyingvisitsandthenwritebooks;butofthosemementosofthelifeandthoughtsofothertimesandotherpeoples,which,translatedintoourlanguageofto-day,arelikeglimpsesofourownlivesandgleamsofourownthought.Thefeelingtheyinspireisthatoftheessentialsimilarityofmen.“This,”saysEmanuelDeutsch—“thisistheendofallinvestigationintohistoryorart.

Theywereevenasweare.”

Thereisapeopletobefoundinallpartsoftheworldwhowellillustratewhatpeculiaritiesareduetohereditarytransmissionandwhattotransmissionbyassociation.TheJewshavemaintainedthepurityoftheirbloodmorescrupulouslyandforafarlongertimethananyoftheEuropeanraces,yetIaminclinedtothinkthattheonlycharacteristicthatcanbeattributedtothisisthatofphysiognomy,andthisisinrealityfarlessmarkedthanisconventionallysupposed,asanyonewhowilltakethetroublemayseeonobservation.Althoughtheyhaveconstantlymarriedamongthemselves,theJewshaveeverywherebeenmodifiedbytheirsurroundings—theEnglish,Russian,Polish,German,andOrientalJewsdifferingfromeachotherinmanyrespectsasmuchasdotheotherpeopleofthosecountries.Yettheyhavemuchincommon,andhaveeverywherepreservedtheirindividuality.Thereasonisclear.ItistheHebrewreligion—andcertainlyreligionisnottransmittedbygeneration,butbyassociation—whichhaseverywherepreservedthedistinctivenessoftheHebrewrace.Thisreligion,whichchildrenderive,notastheyderivetheirphysicalcharacteristics,butbypreceptandassociation,isnotmerelyexclusiveinitsteachings,buthas,byengenderingsuspicionanddislike,producedapowerfuloutsidepressurewhich,evenmorethanitsprecepts,haseverywhereconstitutedoftheJewsacommunitywithinacommunity.Thushasbeenbuiltupandmaintainedacertainpeculiarenvironmentwhichgivesadistinctivecharacter.Jewishintermarriagehasbeentheeffect,notthecauseofthis.WhatpersecutionwhichstoppedshortoftakingJewishchildrenfromtheirparentsandbringingthemupoutsideofthispeculiarenvironmentcouldnotaccomplish,willbeaccomplishedbythelesseningintensityofreligiousbelief,asisalreadyevidentintheUnitedStates,wherethedistinctionbetweenJewandGentileisfastdisappearing.

Anditseemstomethattheinfluenceofthissocialnetorenvironmentwillexplainwhatissooftentakenasproofofracedifferences—thedifficultywhichlesscivilizedracesshowinreceivinghighercivilization,

andthemannerinwhichsomeofthemmeltawaybeforeit.justasonesocialenvironmentpersists,sodoesitrenderitdifficultorimpossibleforthosesubjecttoittoacceptanother.

TheChinesecharacterisfixedifthatofanypeopleis.YettheChineseinCaliforniaacquireAmericanmodesofworking,trading,theuseofmachinery,etc.,withsuchfacilityastoprovethattheyhavenolackofflexibility,ornaturalcapacity.ThattheydonotchangeinotherrespectsisduetotheChineseenvironmentthatstillpersistsandstillsurroundsthem.ComingfromChina,theylookforwardtoreturntoChina,andlivewhilehereinalittleChinaoftheirown,justastheEnglishmeninIndiamaintainalittleEngland.Itisnotmerelythatwenaturallyseekassociationwiththosewhoshareourpeculiarities,andthatthuslanguage,religionandcustomtendtopersistwhereindividualsarenotabsolutelyisolated;butthatthesedifferencesprovokeanexternalpressure,whichcompelssuchassociation.

Theseobviousprinciplesfullyaccountforallthephenomenawhichareseeninthemeetingofonestageorbodyofculturewithanother,withoutresorttothetheoryofingraineddifferences.Forinstance,ascomparativephilologyhasshown,theHindooisofthesameraceashisEnglishconqueror,andindividualinstanceshaveabundantlyshownthatifhecouldbeplacedcompletelyandexclusivelyintheEnglishenvironment(which,asbeforestated,couldbethoroughlydoneonlybyplacinginfantsinEnglishfamiliesinsuchawaythatneitherthey,astheygrowup,northosearoundthem,wouldbeconsciousofanydistinction)onegenerationwouldbeallrequiredtothoroughlyimplantEuropeancivilization.ButtheprogressofEnglishideasandhabitsinIndiamustbenecessarilyveryslow,becausetheymeettherethewebofideasandhabitsconstantlyperpetuatedthroughanimmensepopulation,andinterlacedwitheveryactoflife.

Mr.Bagehot(“PhysicsandPolitics”)endeavorstoexplainthereasonwhybarbarianswasteawaybeforeourcivilization,whiletheydidnotbefore

thatoftheancients,byassumingthattheprogressofcivilizationhasgivenustougherphysicalconstitutions.Afteralludingtothefactthatthereisnolamentinanyclassicalwriterforthebarbarians,butthateverywherethebarbarianenduredthecontactwiththeRomanandtheRomanalliedhimselftothebarbarian,hesays(pp.47-8):

“SavagesinthefirstyearoftheChristianerawereprettymuchwhattheywereintheeighteenhundredth;andiftheystoodthecontactofancientcivilizedmenandcannotstandours,itfollowsthatourraceispresumablytougherthantheancient;forwehavetobear,anddobear,theseedsofgreaterdiseasesthantheancientscarriedwiththem.Wemayuse,perhaps,theunvaryingsavageasametertogaugethevigoroftheconstitutiontowhosecontactheisexposed.”

Mr.Bagehotdoesnotattempttoexplainhowitisthateighteenhundredyearsagocivilizationdidnotgivethelikerelativeadvantageoverbarbarismthatitdoesnow.Butthereisnouseoftalkingaboutthat,orofthelackofproofthatthehumanconstitutionhasbeenawhitimproved.Toanyonewhohasseenhowthecontactofourcivilizationaffectstheinferiorraces,amuchreadierthoughlessflatteringexplanationwilloccur.

Itisnotbecauseourconstitutionsarenaturallytougherthanthoseofthesavage,thatdiseaseswhicharecomparativelyinnocuoustousarecertaindeathtohim.Itisthatweknowandhavethemeansoftreatingthosediseases,whileheisdestitutebothofknowledgeandmeans.Thesamediseaseswithwhichthescumofcivilizationthatfloatsinitsadvanceinoculatesthesavagewouldproveasdestructivetocivilizedmen,iftheyknewnobetterthantoletthemrun,asheinhisignorancehastoletthemrun;andasamatteroffacttheywereasdestructive,untilwefoundouthowtotreatthem.Andnotmerelythis,buttheeffectoftheimpingementofcivilizationuponbarbarismistoweakenthepowerofthesavagewithoutbringinghimintotheconditionsthatgivepowertothecivilizedman.Whilehishabitsandcustomsstilltendtopersist,anddopersistas

farastheycan,theconditionstowhichtheywereadaptedareforciblychanged.Heisahunterinalandstrippedofgame;awarriordeprivedofhisarmsandcalledontopleadinlegaltechnicalities.Heisnotmerelyplacedbetweencultures,but,asMr.BagehotsaysoftheEuropeanhalf-breedsinIndia,heisplacedbetweenmoralities,andlearnsthevicesofcivilizationwithoutitsvirtues.Heloseshisaccustomedmeansofsubsistence,helosesself-respect,helosesmorality;hedeterioratesanddiesaway.Themiserablecreatureswhomaybeseenhangingaroundfrontiertownsorrailroadstations,readytobeg,orsteal,orsolicitavilercommerce,arenotfairrepresentativesoftheIndianbeforethewhitemanhadencroacheduponhishuntinggrounds.Theyhavelostthestrengthandvirtuesoftheirformerstate,withoutgainingthoseofahigher.Infact,civilization,asitpushestheredman,showsnovirtues.TotheAnglo-Saxonofthefrontier,asarule,theaboriginehasnorightswhichthewhitemanisboundtorespect.Heisimpoverished,misunderstood,cheated,andabused.Hediesout,as,undersimilarconditions,weshoulddieout.HedisappearsbeforecivilizationastheBritonsdisappearedbeforeSaxonbarbarism.

Thetruereasonwhythereisnolamentinanyclassicwriterforthebarbarian,butthattheRomancivilizationassimilatedinsteadofdestroying,is,Itakeit,tobefoundnotonlyinthefactthattheancientcivilizationwasmuchnearerakintothebarbarianswhichitmet,butinthemoreimportantfactthatitwasnotextendedasourshasbeen.Itwascarriedforward,notbyanadvancinglineofcolonists,butbyconquestwhichmerelyreducedthenewprovincetogeneralsubjection,leavingthesocial,andgenerallythepoliticalorganizationofthepeopletoagreatdegreeunimpaired,sothat,withoutshatteringordeterioration,theprocessofassimilationwenton.InasomewhatsimilarwaythecivilizationofJapanseemstobenowassimilatingitselftoEuropeancivilization.

InAmericatheAnglo-Saxonhasexterminated,insteadofcivilizing,theIndian,simplybecausehehasnotbroughttheIndianintohis

environment,noryethasthecontactbeeninsuchawayastoinduceorpermittheIndianwebofhabitualthoughtandcustomtobechangedrapidlyenoughtomeetthenewconditionsintowhichhehasbeenbroughtbytheproximityofnewandpowerfulneighbors.Thatthereisnoinnateimpedimenttothereceptionofourcivilizationbytheseuncivilizedraceshasbeenshownoverandoveragaininindividualcases.Andithaslikewisebeenshown,sofarastheexperimentshavebeenpermittedtogo,bytheJesuitsinParaguay,theFranciscansinCalifornia,andtheProtestantmissionariesonsomeofthePacificislands.

Theassumptionofphysicalimprovementintheracewithinanytimeofwhichwehaveknowledgeisutterlywithoutwarrant,andwithinthetimeofwhichMr.Bagehotspeaks,itisabsolutelydisproved.Weknowfromclassicstatues,fromtheburdenscarriedandthemarchesmadebyancientsoldiers,fromtherecordsofrunnersandthefeatsofgymnasts,thatneitherinproportionsnorstrengthhastheraceimprovedwithintwothousandyears.Buttheassumptionofmentalimprovement,whichisevenmoreconfidentlyandgenerallymade,isstillmorepreposterous.Aspoets,artists,architects,philosophers,rhetoricians,statesmen,orsoldiers,canmoderncivilizationshowindividualsofgreatermentalpowerthancantheancient?Thereisnouseinrecallingnames—everyschoolboyknowsthem.Forourmodelsandpersonificationsofmentalpowerwegobacktotheancients,andifwecanforamomentimaginethepossibilityofwhatisheldbythatoldestandmostwidespreadofallbeliefs—thatbeliefwhichLessingdeclaredonthisaccountthemostprobablytrue,thoughheaccepteditonmetaphysicalgrounds—andsupposeHomerorVirgil,DemosthenesorCicero,Alexander,HannibalorCæsar,PlatoorLucretius,EuclidorAristotle,asre-enteringthislifeagainintheNineteenthCentury,canwesupposethattheywouldshowanyinferioritytothemenofto-day?Orifwetakeanyperiodsincetheclassicage,eventhedarkest,oranypreviousperiodofwhichweknowanything,shallwenotfindmenwhointheconditionsanddegreeofknowledgeoftheirtimesshowedmentalpowerofashighanorderasmenshownow?Andamongthelessadvancedracesdowenotto-day,

wheneverourattentioniscalledtothem,findmenwhointheirconditionsexhibitmentalqualitiesasgreatascivilizationcanshow?Didtheinventionoftherailroad,comingwhenitdid,proveanygreaterinventivepowerthandidtheinventionofthewheelbarrowwhenwheelbarrowswerenot?Weofmoderncivilizationareraisedfarabovethosewhohaveprecededusandthoseofthelessadvancedraceswhoareourcontemporaries.Butitisbecausewestandonapyramid,notthatwearetaller.Whatthecenturieshavedoneforusisnottoincreaseourstature,buttobuildupastructureonwhichwemayplantourfeet.

Letmerepeat:Idonotmeantosaythatallmenpossessthesamecapacities,orarementallyalike,anymorethanImeantosaythattheyarephysicallyalike.Amongallthecountlessmillionswhohavecomeandgoneonthisearth,therewereprobablynevertwowhoeitherphysicallyormentallywereexactcounterparts.NoryetdoImeantosaythattherearenotasclearlymarkedracedifferencesinmindasthereareclearlymarkedracedifferencesinbody.Idonotdenytheinfluenceofheredityintransmittingpeculiaritiesofmindinthesameway,andpossiblytothesamedegree,asbodilypeculiaritiesaretransmitted.Butnevertheless,thereis,itseemstome,acommonstandardandnaturalsymmetryofmind,asthereisofbody,towardwhichalldeviationstendtoreturn.TheconditionsunderwhichwefallmayproducesuchdistortionsastheFlatheadsproducebycompressingtheheadsoftheirinfantsortheChinesebybindingtheirdaughters’feet.ButasFlatheadbabiescontinuetobebornwithnaturallyshapedheadsandChinesebabieswithnaturallyshapedfeet,sodoesnatureseemtoreverttothenormalmentaltype.Achildnomoreinheritshisfather’sknowledgethanheinheritshisfather’sglasseyeorartificialleg;thechildofthemostignorantparentsmaybecomeapioneerofscienceoraleaderofthought.

Butthisisthegreatfactwithwhichweareconcerned:Thatthedifferencesbetweenthepeopleofcommunitiesindifferentplacesandatdifferenttimes,whichwecalldifferencesofcivilization,arenotdifferenceswhichinhereintheindividuals,butdifferenceswhichinhere

inthesociety;thattheyarenot,asHerbertSpencerholds,differencesresultingfromdifferencesintheunits;butthattheyaredifferencesresultingfromtheconditionsunderwhichtheseunitsarebroughtinthesociety.Inshort,Itaketheexplanationofthedifferenceswhichdistinguishcommunitiestobethis:Thateachsociety,smallorgreat,necessarilyweavesforitselfawebofknowledge,beliefs,customs,language,tastes,institutions,andlaws.Intothisweb,wovenbyeachsociety,orrather,intothesewebs,foreachcommunityabovethesimplestismadeupofminorsocieties,whichoverlapandinterlaceeachother,theindividualisreceivedatbirthandcontinuesuntilhisdeath.Thisisthematrixinwhichmindunfoldsandfromwhichittakesitsstamp.Thisisthewayinwhichcustoms,andreligions,andprejudices,andtastes,andlanguages,growupandareperpetuated.Thisisthewaythatskillistransmittedandknowledgeisstoredup,andthediscoveriesofonetimemadethecommonstockandsteppingstoneofthenext.Thoughitisthisthatoftenoffersthemostseriousobstaclestoprogress,itisthisthatmakesprogresspossible.ItisthisthatenablesanyschoolboyinourtimetolearninafewhoursmoreoftheuniversethanPtolemyknew;thatplacesthemosthumdrumscientistfarabovethelevelreachedbythegiantmindofAristotle.Thisistotheracewhatmemoryistotheindividual.Ourwonderfularts,ourfar-reachingscience,ourmarvelousinventions—theyhavecomethroughthis.

Humanprogressgoesonastheadvancesmadebyonegenerationareinthiswaysecuredasthecommonpropertyofthenext,andmadethestartingpointfornewadvances.

Wordsworth,inhis“SongattheFeastofBroughamCastle”hasinhighlypoeticalformalludedtothisinfluence:

ArmorrustinginhishallsOnthebloodofCliffordcalls:“QuelltheScot,”exclaimsthelance;“BearmetotheheartofFrance,”

Isthelongingoftheshield.

[BacktoTableofContents]

ChapterIIITheLawofHumanProgress

What,then,isthelawofhumanprogress—thelawunderwhichcivilizationadvances?

Itmustexplainclearlyanddefinitely,andnotbyvaguegeneralitiesorsuperficialanalogies,why,thoughmankindstartedpresumablywiththesamecapacitiesandatthesametime,therenowexistsuchwidedifferencesinsocialdevelopment.Itmustaccountforthearrestedcivilizationsandforthedecayedanddestroyedcivilizations;forthegeneralfactsastotheriseofcivilization,andforthepetrifyingorenervatingforcewhichtheprogressofcivilizationhasheretoforealwaysevolved.Itmustaccountforretrogressionaswellasforprogression;forthedifferencesingeneralcharacterbetweenAsiaticandEuropeancivilizations;forthedifferencebetweenclassicalandmoderncivilizations;forthedifferentratesatwhichprogressgoeson;andforthosebursts,andstarts,andhaltsofprogresswhicharesomarkedasminorphenomena.And,thus,itmustshowuswhataretheessentialconditionsofprogress,andwhatsocialadjustmentsadvanceandwhatretardit.

Itisnotdifficulttodiscoversuchalaw.Wehavebuttolookandwemayseeit.Idonotpretendtogiveitscientificprecision,butmerelytopointitout.

Theincentivestoprogressarethedesiresinherentinhumannature—thedesiretogratifythewantsoftheanimalnature,thewantsoftheintellectualnature,andthewantsofthesympatheticnature;thedesiretobe,toknow,andtodo—desiresthatshortofinfinitycanneverbesatisfied,astheygrowbywhattheyfeedon.

Mindistheinstrumentbywhichmanadvances,andbywhicheachadvanceissecuredandmadethevantagegroundfornewadvances.Thoughhemaynotbytakingthoughtaddacubittohisstature,manmaybytakingthoughtextendhisknowledgeoftheuniverseandhispoweroverit,inwhat,sofaraswecansee,isaninfinitedegree.Thenarrowspanofhumanlifeallowstheindividualtogobutashortdistance,butthougheachgenerationmaydobutlittle,yetgenerations,succeedingtothegainoftheirpredecessors,maygraduallyelevatethestatusofmankind,ascoralpolyps,buildingonegenerationupontheworkoftheother,graduallyelevatethemselvesfromthebottomofthesea.

Mentalpoweris,therefore,themotorofprogress,andmentendtoadvanceinproportiontothementalpowerexpendedinprogression—thementalpowerwhichisdevotedtotheextensionofknowledge,theimprovementofmethods,andthebettermentofsocialconditions.

Nowmentalpowerisafixedquantity—thatistosay,thereisalimittotheworkamancandowithhismind,asthereistotheworkhecandowithhisbody;therefore,thementalpowerwhichcanbedevotedtoprogressisonlywhatisleftafterwhatisrequiredfornon-progressivepurposes.

Thesenon-progressivepurposesinwhichmentalpowerisconsumedmaybeclassifiedasmaintenanceandconflict.BymaintenanceImean,notonlythesupportofexistence,butthekeepingupofthesocialconditionandtheholdingofadvancesalreadygained.ByconflictImeannotmerelywarfareandpreparationforwarfare,butallexpenditureofmentalpowerinseekingthegratificationofdesireattheexpenseofothers,andinresistancetosuchaggression.

Tocomparesocietytoaboat.Herprogressthroughthewaterwillnotdependupontheexertionofhercrew,butupontheexertiondevotedtopropellingher.Thiswillbelessenedbyanyexpenditureofforcerequiredforbailing,oranyexpenditureofforceinfightingamongthemselves,or

inpullingindifferentdirections.

Now,asinaseparatedstatethewholepowersofmanarerequiredtomaintainexistence,andmentalpowerissetfreeforhigherusesonlybytheassociationofmenincommunities,whichpermitsthedivisionoflaborandalltheeconomieswhichcomewiththeco-operationofincreasednumbers,associationisthefirstessentialofprogress.Improvementbecomespossibleasmencometogetherinpeacefulassociation,andthewiderandclosertheassociation,thegreaterthepossibilitiesofimprovement.Andasthewastefulexpenditureofmentalpowerinconflictbecomesgreaterorlessasthemorallawwhichaccordstoeachanequalityofrightsisignoredorisrecognized,equality(orjustice)isthesecondessentialofprogress.

Thusassociationinequalityisthelawofprogress.Associationfreesmentalpowerforexpenditureinimprovement,andequality,orjustice,orfreedom—forthetermsheresignifythesamething,therecognitionofthemorallaw—preventsthedissipationofthispowerinfruitlessstruggles.

Hereisthelawofprogress,whichwillexplainalldiversities,alladvances,allhalts,andretrogressions.Mentendtoprogressjustastheycomeclosertogether,andbyco-operationwitheachotherincreasethementalpowerthatmaybedevotedtoimprovement,butjustasconflictisprovoked,orassociationdevelopsinequalityofconditionandpower,thistendencytoprogressionislessened,checked,andfinallyreversed.

Giventhesameinnatecapacity,anditisevidentthatsocialdevelopmentwillgoonfasterorslower,willstoporturnback,accordingtotheresistancesitmeets.Inageneralwaytheseobstaclestoimprovementmay,inrelationtothesocietyitself,beclassedasexternalandinternal—thefirstoperatingwithgreaterforceintheearlierstagesofcivilization,thelatterbecomingmoreimportantinthelaterstages.

Manissocialinhisnature.Hedoesnotrequiretobecaughtandtamedinordertoinducehimtolivewithhisfellows.Theutterhelplessnesswithwhichheenterstheworld,andthelongperiodrequiredforthematurityofhispowers,necessitatethefamilyrelation;which,aswemayobserve,iswider,andinitsextensionsstronger,amongtheruderthanamongthemorecultivatedpeoples.Thefirstsocietiesarefamilies,expandingintotribes,stillholdingamutualbloodrelationship,andevenwhentheyhavebecomegreatnationsclaimingacommondescent.

Givenbeingsofthiskind,placedonaglobeofsuchdiversifiedsurfaceandclimateasthis,anditisevidentthat,evenwithequalcapacity,andanequalstart,socialdevelopmentmustbeverydifferent.Thefirstlimitorresistancetoassociationwillcomefromtheconditionsofphysicalnature,andasthesegreatlyvarywithlocality,correspondingdifferencesinsocialprogressmustshowthemselves.Thenetrapidityofincrease,andtheclosenesswithwhichmen,astheyincrease,cankeeptogether,will,intherudestateofknowledgeinwhichrelianceforsubsistencemustbeprincipallyuponthespontaneousofferingsofnature,verylargelydependuponclimate,soil,andphysicalconformation.Wheremuchanimalfoodandwarmclothingarerequired;wheretheearthseemspoorandniggard;wheretheexuberantlifeoftropicalforestsmocksbarbarousman’spunyeffortstocontrol;wheremountains,deserts,orarmsoftheseaseparateandisolatemen;association,andthepowerofimprovementwhichitevolves,canatfirstgobutalittleway.Butontherichplainsofwarmclimates,wherehumanexistencecanbemaintainedwithasmallerexpenditureofforce,andfromamuchsmallerarea,mencankeepclosertogether,andthementalpowerwhichcanatfirstbedevotedtoimprovementismuchgreater.Hencecivilizationnaturallyfirstarisesinthegreatvalleysandtablelandswherewefinditsearliestmonuments.

Butthesediversitiesinnaturalconditions,notmerelythusdirectlyproducediversitiesinsocialdevelopmentbut,byproducingdiversitiesinsocialdevelopment,bringoutinmanhimselfanobstacle,orratheran

activecounterforce,toimprovement.Asfamiliesandtribesareseparatedfromeachother,thesocialfeelingceasestooperatebetweenthem,anddifferencesariseinlanguage,custom,tradition,religion—inshort,inthewholesocialwebwhicheachcommunity,howeversmallorlarge,constantlyspins.Withthesedifferences,prejudicesgrow,animositiesspringup,contacteasilyproducesquarrels,aggressionbegetsaggression,andwrongkindlesrevenge.AndsobetweentheseseparatesocialaggregatesarisesthefeelingofIshmaelandthespiritofCain,warfarebecomesthechronicandseeminglynaturalrelationofsocietiestoeachother,andthepowersofmenareexpendedinattackordefense,inmutualslaughterandmutualdestructionofwealth,orinwarlikepreparations.Howlongthishostilitypersists,theprotectivetariffsandthestandingarmiesofthecivilizedworldto-daybearwitness;howdifficultitistogetovertheideathatitisnotthefttostealfromaforeigner,thedifficultyinprocuringaninternationalcopyrightactwillshow.Canwewonderattheperpetualhostilitiesoftribesandclans?Canwewonderthatwheneachcommunitywasisolatedfromtheothers—wheneach,uninfluencedbytheothers,wasspinningitsseparatewebofsocialenvironment,whichnoindividualcanescape,thatwarshouldhavebeentheruleandpeacetheexception?“Theywereevenasweare.”

Now,warfareisthenegationofassociation.Theseparationofmenintodiversetribes,byincreasingwarfare,thuschecksimprovement;whileinthelocalitieswherealargeincreaseinnumbersispossiblewithoutmuchseparation,civilizationgainstheadvantageofexemptionfromtribalwar,evenwhenthecommunityasawholeiscarryingonwarfarebeyonditsborders.Thus,wheretheresistanceofnaturetothecloseassociationofmenisslightest,thecounterforceofwarfareislikelyatfirsttobeleastfelt;andintherichplainswherecivilizationfirstbegins,itmayrisetoagreatheightwhilescatteredtribesareyetbarbarous.Andthus,whensmall,separatedcommunitiesexistinastateofchronicwarfarewhichforbidsadvance,thefirststeptotheircivilizationistheadventofsomeconqueringtribeornationthatunitesthesesmallercommunitiesintoalargerone,inwhichinternalpeaceispreserved.Wherethispowerof

peaceableassociationisbrokenup,eitherbyexternalassaultsorinternaldissensions,theadvanceceasesandretrogressionbegins.

Butitisnotconquestalonethathasoperatedtopromoteassociation,and,byliberatingmentalpowerfromthenecessitiesofwarfare,topromotecivilization.Ifthediversitiesofclimate,soil,andconfigurationoftheearth’ssurfaceoperateatfirsttoseparatemankind,theyalsooperatetoencourageexchange.Andcommerce,whichisinitselfaformofassociationorco-operation,operatestopromotecivilization,notonlydirectly,butbybuildingupinterestswhichareopposedtowarfare,anddispellingtheignorancewhichisthefertilemotherofprejudicesandanimosities.

Andsoofreligion.Thoughtheformsithasassumed—andtheanimositiesithasarousedhaveoftensunderedmenandproducedwarfare,yetithasatothertimesbeenthemeansofpromotingassociation.Acommonworshiphasoften,asamongtheGreeks,mitigatedwarandfurnishedthebasisofunion,whileitisfromthetriumphofChristianityoverthebarbariansofEuropethatmoderncivilizationsprings.HadnottheChristianChurchexistedwhentheRomanEmpirewenttopieces,Europe,destituteofanybondofassociation,mighthavefallentoaconditionnotmuchabovethatoftheNorthAmericanIndiansoronlyreceivedcivilizationwithanAsiaticimpressfromtheconqueringscimitersoftheinvadinghordeswhichhadbeenweldedintoamightypowerbyareligionwhich,springingupinthedesertsofArabia,hadunitedtribesseparatedfromtimeimmemorial,and,thenceissuing,broughtintotheassociationofacommonfaithagreatpartofthehumanrace.

Lookingoverwhatweknowofthehistoryoftheworld,wethusseecivilizationeverywherespringingupwheremenarebroughtintoassociation,andeverywheredisappearingasthisassociationisbrokenup.ThustheRomancivilization,spreadoverEuropebytheconquestswhichinsuredinternalpeace,wasoverwhelmedbytheincursionsofthe

northernnationsthatbrokesocietyagainintodisconnectedfragments;andtheprogressthatnowgoesoninourmoderncivilizationbeganasthefeudalsystemagainbegantoassociatemeninlargercommunities,andthespiritualsupremacyofRometobringthesecommunitiesintoacommonrelation,asherlegionshaddonebefore.Asthefeudalbondsgrewintonationalautonomies,andChristianityworkedtheameliorationofmanners,broughtforththeknowledgethatduringthedarkdaysshehadhidden,boundthethreadsofpeacefulunioninherall-pervadingorganization,andtaughtassociationinherreligiousorders,agreaterprogressbecamepossible,which,asmenhavebeenbroughtintocloserandcloserassociationandco-operation,hasgoneonwithgreaterandgreaterforce.

Butweshallneverunderstandthecourseofcivilization,andthevariedphenomenawhichitshistorypresents,withoutaconsiderationofwhatImaytermtheinternalresistances,orcounterforces,whichariseintheheartofadvancingsociety,andwhichcanaloneexplainhowacivilizationoncefairlystartedshouldeithercomeofitselftoahaltorbedestroyedbybarbarians.

Thementalpower,whichisthemotorofsocialprogress,issetfreebyassociation,whichis,what,perhaps,itmaybemoreproperlycalled,anintegration.Societyinthisprocessbecomesmorecomplex;itsindividualsmoredependentuponeachother.Occupationsandfunctionsarespecialized.Insteadofwandering,populationbecomesfixed.Insteadofeachmanattemptingtosupplyallofhiswants,thevarioustradesandindustriesareseparated—onemanacquiresskillinonething,andanotherinanotherthing.So,too,ofknowledge,thebodyofwhichconstantlytendstobecomevasterthanonemancangrasp,andisseparatedintodifferentparts,whichdifferentindividualsacquireandpursue.So,too,theperformanceofreligiousceremoniestendstopassintothehandsofabodyofmenspeciallydevotedtothatpurpose,andthepreservationoforder,theadministrationofjustice,theassignmentofpublicdutiesandthedistributionofawards,theconductofwar,etc.,tobemadethespecial

functionsofanorganizedgovernment.Inshort,tousethelanguageinwhichHerbertSpencerhasdefinedevolution,thedevelopmentofsocietyis,inrelationtoitscomponentindividuals,thepassingfromanindefinite,incoherenthomogeneitytoadefinite,coherentheterogeneity.Thelowerthestageofsocialdevelopment,themoresocietyresemblesoneofthoselowestofanimalorganismswhicharewithoutorgansorlimbs,andfromwhichapartmaybecutandyetlive.Thehigherthestageofsocialdevelopment,themoresocietyresemblesthosehigherorganismsinwhichfunctionsandpowersarespecialized,andeachmemberisvitallydependentontheothers.

Now,thisprocessofintegration,ofthespecializationoffunctionsandpowers,asitgoesoninsociety,is,byvirtueofwhatisprobablyoneofthedeepestlawsofhumannature,accompaniedbyaconstantliabilitytoinequality.Idonotmeanthatinequalityisthenecessaryresultofsocialgrowth,butthatitistheconstanttendencyofsocialgrowthifunaccompaniedbychangesinsocialadjustmentswhich,inthenewconditionsthatgrowthproduces,willsecureequality.Imean,sotospeak,thatthegarmentoflaws,customs,andpoliticalinstitutions,whicheachsocietyweavesforitself,isconstantlytendingtobecometootightasthesocietydevelops.Imean,sotospeak,thatman,asheadvances,threadsalabyrinth,inwhich,ifhekeepsstraightahead,hewillinfalliblylosehisway,andthroughwhichreasonandjusticecanalonekeephimcontinuouslyinanascendingpath.

For,whiletheintegrationwhichaccompaniesgrowthtendsinitselftosetfreementalpowertoworkimprovement,thereis,bothwithincreaseofnumbersandwithincreaseincomplexityofthesocialorganization,acountertendencysetuptotheproductionofastateofinequality,whichwastesmentalpower,and,asitincreases,bringsimprovementtoahalt.

Totracetoitshighestexpressionthelawwhichthusoperatestoevolvewithprogresstheforcewhichstopsprogress,wouldbe,itseemstome,togofartothesolutionofaproblemdeeperthanthatofthegenesisofthe

materialuniverse—theproblemofthegenesisofevil.Letmecontentmyselfwithpointingoutthemannerinwhich,associetydevelops,therearisetendencieswhichcheckdevelopment.

Therearetwoqualitiesofhumannaturewhichitwillbewell,however,firsttocalltomind.Theoneisthepowerofhabit—thetendencytocontinuetodothingsinthesameway;theotheristhepossibilityofmentalandmoraldeterioration.Theeffectofthefirstinsocialdevelopmentistocontinuehabits,customs,laws,andmethods,longaftertheyhavelosttheiroriginalusefulness,andtheeffectoftheotheristopermitthegrowthofinstitutionsandmodesofthoughtfromwhichthenormalperceptionsofmeninstinctivelyrevolt.

Nowthegrowthanddevelopmentofsocietynotmerelytendtomakeeachmoreandmoredependentuponall,andtolessentheinfluenceofindividuals,evenovertheirownconditions,ascomparedwiththeinfluenceofsociety;buttheeffectofassociationorintegrationistogiverisetoacollectivepowerwhichisdistinguishablefromthesumofindividualpowers.Analogies,or,perhaps,ratherillustrationsofthesamelaw,maybefoundinalldirections.Asanimalorganismsincreaseincomplexity,therearise,abovethelifeandpoweroftheparts,alifeandpoweroftheintegratedwhole;abovethecapabilityofinvoluntarymovements,thecapabilityofvoluntarymovements.Theactionsandimpulsesofbodiesofmenare,ashasoftenbeenobserved,differentfromthosewhich,underthesamecircumstances,wouldbecalledforthinindividuals.Thefightingqualitiesofaregimentmaybeverydifferentfromthoseoftheindividualsoldiers.Butthereisnoneedofillustrations.Inourinquiriesintothenatureandriseofrent,wetracedtheverythingtowhichIallude.Wherepopulationissparse,landhasnovalue;justasmencongregatetogether,thevalueoflandappearsandrises—aclearlydistinguishablethingfromthevaluesproducedbyindividualeffort;avaluewhichspringsfromassociation,whichincreasesasassociationgrowsgreater,anddisappearsasassociationisbrokenup.Andthesamethingistrueofpowerinotherformsthanthosegenerallyexpressedin

termsofwealth.

Now,associetygrows,thedispositiontocontinueprevioussocialadjustmentstendstolodgethiscollectivepower,asitarises,inthehandsofaportionofthecommunity;andthisunequaldistributionofthewealthandpowergainedassocietyadvancestendstoproducegreaterinequality,sinceaggressiongrowsbywhatitfeedson,andtheideaofjusticeisblurredbythehabitualtolerationofinjustice.

Inthiswaythepatriarchalorganizationofsocietycaneasilygrowintohereditarymonarchy,inwhichthekingisasagodonearth,andthemassesofthepeoplemereslavesofhiscaprice.Itisnaturalthatthefathershouldbethedirectingheadofthefamily,andthatathisdeaththeeldestson,astheoldestandmostexperiencedmemberofthelittlecommunity,shouldsucceedtotheheadship.Buttocontinuethisarrangementasthefamilyexpands,istolodgepowerinaparticularline,andthepowerthuslodgednecessarilycontinuestoincrease,asthecommonstockbecomeslargerandlarger,andthepowerofthecommunitygrows.Theheadofthefamilypassesintothehereditaryking,whocomestolookuponhimselfandtobelookeduponbyothersasabeingofsuperiorrights.Withthegrowthofthecollectivepowerascomparedwiththepoweroftheindividual,hispowertorewardandtopunishincreases,andsoincreasetheinducementstoflatterandtofearhim;untilfinally,iftheprocessbenotdisturbed,anationgrovelsatthefootofathrone,andahundredthousandmentoilforfiftyyearstoprepareatombforoneoftheirownmortalkind.

Sothewar-chiefofalittlebandofsavagesisbutoneoftheirnumber,whomtheyfollowastheirbravestandmostwary.Butwhenlargebodiescometoacttogether,personalselectionbecomesmoredifficult,ablinderobediencebecomesnecessaryandcanbeenforced,andfromtheverynecessitiesofwarfarewhenconductedonalargescaleabsolutepowerarises.

Andsoofthespecializationoffunction.Thereisamanifestgaininproductivepowerwhensocialgrowthhasgonesofarthatinsteadofeveryproducerbeingsummonedfromhisworkforfightingpurposes,aregularmilitaryforcecanbespecialized;butthisinevitablytendstotheconcentrationofpowerinthehandsofthemilitaryclassortheirchiefs.Thepreservationofinternalorder,theadministrationofjustice,theconstructionandcareofpublicworks,and,notably,theobservancesofreligion,alltendinsimilarmannertopassintothehandsofspecialclasses,whosedispositionitistomagnifytheirfunctionandextendtheirpower.

Butthegreatcauseofinequalityisinthenaturalmonopolywhichisgivenbythepossessionofland.Thefirstperceptionsofmenseemalwaystobethatlandiscommonproperty;buttherudedevicesbywhichthisisatfirstrecognized—suchasannualpartitionsorcultivationincommon—areconsistentwithonlyalowstageofdevelopment.Theideaofproperty,whichnaturallyariseswithreferencetothingsofhumanproduction,iseasilytransferredtoland,andaninstitutionwhichwhenpopulationissparsemerelysecurestotheimproverandusertheduerewardofhislabor,finally,aspopulationbecomesdenseandrentarises,operatestostriptheproducerofhiswages.Notmerelythis,buttheappropriationofrentforpublicpurposes,whichistheonlywayinwhich,withanythinglikeahighdevelopment,landcanbereadilyretainedascommonproperty,becomes,whenpoliticalandreligiouspowerpassesintothehandsofaclass,theownershipofthelandbythatclass,andtherestofthecommunitybecomemerelytenants.Andwarsandconquests,whichtendtotheconcentrationofpoliticalpowerandtotheinstitutionofslavery,naturallyresult,wheresocialgrowthhasgivenlandavalue,intheappropriationofthesoil.Adominantclass,whoconcentratepowerintheirhands,willlikewisesoonconcentrateownershipoftheland.Tothemwillfalllargepartitionsofconqueredland,whichtheformerinhabitantswilltillastenantsorserfs,andthepublicdomain,orcommonlands,whichinthenaturalcourseofsocialgrowthareleftforawhileineverycountry,andinwhichstatetheprimitivesystemofvillageculture

leavespastureandwoodland,arereadilyacquired,asweseebymoderninstances.Andinequalityonceestablished,theownershipoflandtendstoconcentrateasdevelopmentgoeson.

Iammerelyattemptingtosetforththegeneralfactthatasasocialdevelopmentgoeson,inequalitytendstoestablishitself,andnottopointouttheparticularsequence,whichmustnecessarilyvarywithdifferentconditions.Butthismainfactmakesintelligibleallthephenomenaofpetrifactionandretrogression.Theunequaldistributionofthepowerandwealthgainedbytheintegrationofmeninsocietytendstocheck,andfinallytocounterbalance,theforcebywhichimprovementsaremadeandsocietyadvances.Ontheoneside,themassesofthecommunityarecompelledtoexpendtheirmentalpowersinmerelymaintainingexistence.Ontheotherside,mentalpowerisexpendedinkeepingupandintensifyingthesystemofinequality,inostentation,luxury,andwarfare.Acommunitydividedintoaclassthatrulesandaclassthatisruled—intotheveryrichandtheverypoor,may“buildlikegiantsandfinishlikejewelers;”butitwillbemonumentsofruthlessprideandbarrenvanity,orofareligionturnedfromitsofficeofelevatingmanintoaninstrumentforkeepinghimdown.Inventionmayforawhiletosomedegreegoon;butitwillbetheinventionofrefinementsinluxury,nottheinventionsthatrelievetoilandincreasepower.Inthearcanaoftemplesorinthechambersofcourtphysiciansknowledgemaystillbesought;butitwillbehiddenasasecretthing,orifitdarescomeouttoelevatecommonthoughtorbrightencommonlife,itwillbetroddendownasadangerousinnovator.Forasittendstolessenthementalpowerdevotedtoimprovement,sodoesinequalitytendtorendermenadversetoimprovement.Howstrongisthedispositiontoadheretooldmethodsamongtheclasseswhoarekeptinignorancebybeingcompelledtotoilforamereexistence,istoowellknowntorequireillustration;andontheotherhandtheconservatismoftheclassestowhomtheexistingsocialadjustmentgivesspecialadvantagesisequallyapparent.Thistendencytoresistinnovation,eventhoughitbeimprovement,isobservableineveryspecialorganization—inreligion,inlaw,inmedicine,inscience,intrade

guilds;anditbecomesintensejustastheorganizationisclose.Aclosecorporationhasalwaysaninstinctivedislikeofinnovationandinnovators,whichisbuttheexpressionofaninstinctivefearthatchangemaytendtothrowdownthebarrierswhichhedgeitinfromthecommonherd,andsorobitofimportanceandpower;anditisalwaysdisposedtoguardcarefullyitsspecialknowledgeorskill.

Itisinthiswaythatpetrifactionsucceedsprogress.Theadvanceofinequalitynecessarilybringsimprovementtoahalt,andasitstillpersistsorprovokesunavailingreactions,drawsevenuponthementalpowernecessaryformaintenance,andretrogressionbegins.

Theseprinciplesmakeintelligiblethehistoryofcivilization.

Inthelocalitieswhereclimate,soil,andphysicalconformationtendedleasttoseparatemenastheyincreased,andwhere,accordingly,thefirstcivilizationsgrewup,theinternalresistancestoprogresswouldnaturallydevelopinamoreregularandthoroughmannerthanwheresmallercommunities,whichintheirseparationhaddevelopeddiversities,wereafterwardbroughttogetherintoacloserassociation.Itisthis,itseemstome,whichaccountsforthegeneralcharacteristicsoftheearliercivilizationsascomparedwiththelatercivilizationsofEurope.Suchhomogeneouscommunities,developingfromthefirstwithoutthejarofconflictbetweendifferentcustoms,laws,religions,etc.,wouldshowamuchgreateruniformity.Theconcentratingandconservativeforceswouldall,sotospeak,pulltogether.Rivalchieftainswouldnotcounterbalanceeachother,nordiversitiesofbeliefholdthegrowthofpriestlyinfluenceincheck.Politicalandreligiouspower,wealthandknowledge,wouldthustendtoconcentrateinthesamecenters.Thesamecauseswhichtendedtoproducethehereditarykingandhereditarypriestwouldtendtoproducethehereditaryartisanandlaborer,andtoseparatesocietyintocastes.Thepowerwhichassociationsetsfreeforprogresswouldthusbewasted,andbarrierstofurtherprogressbegraduallyraised.Thesurplusenergiesofthemasseswouldbedevotedtotheconstruction

oftemples,palaces,andpyramids;toministeringtotheprideandpamperingtheluxuryoftheirrulers;andshouldanydispositiontoimprovementariseamongtheclassesofleisureitwouldatoncebecheckedbythedreadofinnovation.Societydevelopinginthiswaymustatlengthstopinaconservatismwhichpermitsnofurtherprogress.

Howlongsuchastateofcompletepetrifaction,whenoncereached,willcontinue,seemstodependuponexternalcauses,fortheironbondsofthesocialenvironmentwhichgrowsuprepressdisintegratingforcesaswellasimprovement.Suchacommunitycanbemosteasilyconquered,forthemassesofthepeoplearetrainedtoapassiveacquiescenceinalifeofhopelesslabor.Iftheconquerorsmerelytaketheplaceoftherulingclass,astheHyksosdidinEgyptandtheTartarsinChina,everythingwillgoonasbefore.Iftheyravageanddestroy,thegloryofpalaceandtempleremainsbutinruins,populationbecomessparse,andknowledgeandartarelost.

EuropeancivilizationdiffersincharacterfromcivilizationsoftheEgyptiantypebecauseitspringsnotfromtheassociationofahomogeneouspeopledevelopingfromthebeginning,oratleastforalongtime,underthesameconditions,butfromtheassociationofpeopleswhoinseparationhadacquireddistinctivesocialcharacteristics,andwhosesmallerorganizationslongerpreventedtheconcentrationofpowerandwealthinonecenter.ThephysicalconformationoftheGrecianpeninsulaissuchastoseparatethepeopleatfirstintoanumberofsmallcommunities.Asthosepettyrepublicsandnominalkingdomsceasedtowastetheirenergiesinwarfare,andthepeaceableco-operationofcommerceextended,thelightofcivilizationblazedup.ButtheprincipleofassociationwasneverstrongenoughtosaveGreecefromintertribalwar,andwhenthiswasputanendtobyconquest,thetendencytoinequality,whichhadbeencombatedwithvariousdevicesbyGreciansagesandstatesmen,workeditsresult,andGrecianvalor,art,andliteraturebecamethingsofthepast.Andsointheriseandextension,thedeclineandfall,ofRomancivilization,maybeseentheworkingofthese

twoprinciplesofassociationandequality,fromthecombinationofwhichspringsprogress.

SpringingfromtheassociationoftheindependenthusbandmenandfreecitizensofItaly,andgainingfreshstrengthfromconquestswhichbroughthostilenationsintocommonrelations,theRomanpowerhushedtheworldinpeace.Butthetendencytoinequality,checkingrealprogressfromthefirst,increasedastheRomancivilizationextended.TheRomancivilizationdidnotpetrifyasdidthehomogeneouscivilizationswherethestrongbondsofcustomandsuperstitionthatheldthepeopleinsubjectionprobablyalsoprotectedthem,oratanyratekeptthepeacebetweenrulersandruled;itrotted,declinedandfell.LongbeforeGothorVandalhadbrokenthroughthecordonofthelegions,evenwhileherfrontierswereadvancing,Romewasdeadattheheart.GreatestateshadruinedItaly.InequalityhaddriedupthestrengthanddestroyedthevigoroftheRomanworld.Governmentbecamedespotism,whichevenassassinationcouldnottemper;patriotismbecameservility;vicesthemostfoulfloutedthemselvesinpublic;literaturesanktopuerilities;learningwasforgotten;fertiledistrictsbecamewastewithouttheravagesofwar—everywhereinequalityproduceddecay,political,mental,moral,andmaterial.ThebarbarismwhichoverwhelmedRomecamenotfromwithout,butfromwithin.ItwasthenecessaryproductofthesystemwhichhadsubstitutedslavesandcoloniifortheindependenthusbandmenofItaly,andcarvedtheprovincesintoestatesofsenatorialfamilies.

Moderncivilizationowesitssuperioritytothegrowthofequalitywiththegrowthofassociation.Twogreatcausescontributedtothis—thesplittingupofconcentratedpowerintoinnumerablelittlecentersbytheinfluxoftheNorthernnations,andtheinfluenceofChristianity.WithoutthefirsttherewouldhavebeenthepetrifactionandslowdecayoftheEasternEmpire,wherechurchandstatewerecloselymarriedandlossofexternalpowerbroughtnoreliefofinternaltyranny.Andbutfortheothertherewouldhavebeenbarbarism,withoutprincipleofassociationoramelioration.Thepettychiefsandallodiallordswhoeverywheregrasped

localsovereigntyheldeachotherincheck.Italiancitiesrecoveredtheirancientliberty,freetownswerefounded,villagecommunitiestookroot,andserfsacquiredrightsinthesoiltheytilled.TheleavenofTeutonicideasofequalityworkedthroughthedisorganizedanddisjointedfabricofsociety.Andalthoughsocietywassplitupintoaninnumerablenumberofseparatedfragments,yettheideaofcloserassociationwasalwayspresent—itexistedintherecollectionsofauniversalempire;itexistedintheclaimsofauniversalchurch.

ThoughChristianitybecamedistortedandalloyedinpercolatingthrougharottingcivilization;thoughpagangodsweretakenintoherpantheon,andpaganformsintoherritual,andpaganideasintohercreed;yetheressentialideaoftheequalityofmenwasneverwhollydestroyed.Andtwothingshappenedoftheutmostmomenttoincipientcivilization—theestablishmentofthepapacyandthecelibacyoftheclergy.Thefirstpreventedthespiritualpowerfromconcentratinginthesamelinesasthetemporalpower;andthelatterpreventedtheestablishmentofapriestlycaste,duringatimewhenallpowertendedtohereditaryform.

Inhereffortsfortheabolitionofslavery;inherTruceofGod;inhermonasticorders;inhercouncilswhichunitednations,andheredictswhichranwithoutregardtopoliticalboundaries;inthelowbornhandsinwhichsheplacedasignbeforewhichtheproudestknelt;inherbishopswhobyconsecrationbecamethepeersofthegreatestnobles;inher“ServantofServants,”forsohisofficialtitleran,who,byvirtueoftheringofasimplefisherman,claimedtherighttoarbitratebetweennations,andwhosestirrupwasheldbykings;theChurch,inspiteofeverything,wasyetapromoterofassociation,awitnessforthenaturalequalityofmen;andbytheChurchherselfwasnurturedaspiritthat,whenherearlyworkofassociationandemancipationwaswell-nighdone—whenthetiesshehadknithadbecomestrong,andthelearningshehadpreservedhadbeengiventotheworld—brokethechainswithwhichshewouldhavefetteredthehumanmind,andinagreatpartofEuroperentherorganization.

TheriseandgrowthofEuropeancivilizationistoovastandcomplexasubjecttobethrownintoproperperspectiveandrelationinafewparagraphs;butinallitsdetails,asinitsmainfeatures,itillustratesthetruththatprogressgoesonjustassocietytendstowardcloserassociationandgreaterequality.Civilizationisco-operation.Unionandlibertyareitsfactors.Thegreatextensionofassociation—notaloneinthegrowthoflargeranddensercommunities,butintheincreaseofcommerceandthemanifoldexchangeswhichkniteachcommunitytogetherandlinkthemwithotherthoughwidelyseparatedcommunities;thegrowthofinternationalandmunicipallaw;theadvancesinsecurityofpropertyandofperson,inindividualliberty,andtowardsdemocraticgovernment—advances,inshort,towardstherecognitionoftheequalrightstolife,liberty,andthepursuitofhappiness—itisthesethatmakeourmoderncivilizationsomuchgreater,somuchhigher,thananythathasgonebefore.Itisthesethathavesetfreethementalpowerwhichhasrolledbacktheveilofignorancewhichhidallbutasmallportionoftheglobefrommen’sknowledge;whichhasmeasuredtheorbitsofthecirclingspheresandbidsusseemoving,pulsinglifeinadropofwater;whichhasopenedtoustheantechamberofnature’smysteriesandreadthesecretsofalong-buriedpast;whichhasharnessedinourservicephysicalforcesbesidewhichman’seffortsarepuny;andincreasedproductivepowerbyathousandgreatinventions.

InthatspiritoffatalismtowhichIhavealludedaspervadingcurrentliterature,itisthefashiontospeakevenofwarandslaveryasmeansofhumanprogress.Butwar,whichistheoppositeofassociation,canaidprogressonlywhenitpreventsfurtherwarorbreaksdownantisocialbarrierswhicharethemselvespassivewar.

Asforslavery,Icannotseehowitcouldeverhaveaidedinestablishingfreedom,andfreedom,thesynonymofequality,is,fromtheveryrudeststateinwhichmancanheimagined,thestimulusandconditionofprogress.AugusteComte’sideathattheinstitutionofslaverydestroyedcannibalismisasfancifulasElia’shumorousnotionofthewaymankind

acquiredatasteforroastpig.Itassumesthatapropensitythathasneverbeenfounddevelopedinmansaveastheresultofthemostunnaturalconditions—thedirestwantorthemostbrutalizingsuperstitions—isanoriginalimpulse,andthathe,eveninhisloweststatethehighestofallanimals,hasnaturalappetiteswhichthenoblerbrutesdonotshow.Andsooftheideathatslaverybegancivilizationbygivingslaveownersleisureforimprovement.

Slaveryneverdidandnevercouldaidimprovement.Whetherthecommunityconsistofasinglemasterandasingleslave,orofthousandsofmastersandmillionsofslaves,slaverynecessarilyinvolvesawasteofhumanpower;fornotonlyisslavelaborlessproductivethanfreelabor,butthepowerofmastersislikewisewastedinholdingandwatchingtheirslaves,andiscalledawayfromdirectionsinwhichrealimprovementlies.Fromfirsttolast,slavery,likeeveryotherdenialofthenaturalequalityofmen,hashamperedandpreventedprogress.Justinproportionasslaveryplaysanimportantpartinthesocialorganizationdoesimprovementcease.Thatintheclassicalworldslaverywassouniversal,isundoubtedlythereasonwhythementalactivitywhichsopolishedliteratureandrefinedartneverhitonanyofthegreatdiscoveriesandinventionswhichdistinguishmoderncivilization.Noslave-holdingpeopleeverwereaninventivepeople.Inaslave-holdingcommunitytheupperclassesmaybecomeluxuriousandpolished;butneverinventive.Whateverdegradesthelaborerandrobshimofthefruitsofhistoilstiflesthespiritofinventionandforbidstheutilizationofinventionsanddiscoveriesevenwhenmade.Tofreedomaloneisgiventhespellofpowerwhichsummonsthegeniiinwhosekeepingarethetreasuresofearthandtheviewlessforcesoftheair.

Thelawofhumanprogress,whatisitbutthemorallaw?Justassocialadjustmentspromotejustice,justastheyacknowledgetheequalityofrightbetweenmanandman,justastheyinsuretoeachtheperfectlibertywhichisboundedonlybytheequallibertyofeveryother,mustcivilizationadvance.justastheyfailinthis,mustadvancingcivilization

cometoahaltandrecede.PoliticaleconomyandsocialsciencecannotteachanylessonsthatarenotembracedinthesimpletruthsthatweretaughttopoorfishermenandJewishpeasantsbyOnewhoeighteenhundredyearsagowascrucified—thesimpletruthswhich,beneaththewarpingsofselfishnessandthedistortionsofsuperstition,seemtounderlieeveryreligionthathaseverstriventoformulatethespiritualyearningsofman.

Howeasyitisforignorancetopassintocontemptanddislike;hownaturalitisforustoconsideranydifferenceinmanners,customs,religion,etc.,asproofoftheinferiorityofthosewhodifferfromus,anyonewhohasemancipatedhimselfinanydegreefromprejudice,andwhomixeswithdifferentclasses,mayseeincivilizedsociety.Inreligion,forinstance,thespiritofthehymn—

“I’dratherbeaBaptist,andwearashiningface,ThanfortobeaMethodistandalwaysfallfromgrace,”

isobservableinalldenominations.AstheEnglishBishopsaid,“Orthodoxyismydoxy,andheterodoxyisanyotherdoxy,”whiletheuniversaltendencyistoclassifyalloutsideoftheorthodoxiesandheterodoxiesoftheprevailingreligionasheathensoratheists.Andtheliketendencyisobservableastoallotherdifferences.

TheSandwichIslandersdidhonortotheirgoodchiefsbyeatingtheirbodies.Theirbadandtyrannicalchiefstheywouldnottouch.TheNewZealandershadanotionthatbyeatingtheirenemiestheyacquiredtheirstrengthandvalor.Andthisseemstobethegeneraloriginofeatingprisonersofwar.

[BacktoTableofContents]

ChapterIVHowModernCivilizationMayDecline

Theconclusionwehavethusreachedharmonizescompletelywithourpreviousconclusions.

Thisconsiderationofthelawofhumanprogressnotonlybringsthepolitico-economiclaws,whichinthisinquirywehaveworkedout,withinthescopeofahigherlaw—perhapstheveryhighestlawourmindscangrasp—butitprovesthatthemakingoflandcommonpropertyinthewayIhaveproposedwouldgiveanenormousimpetustocivilization,whiletherefusaltodosomustentailretrogression.Acivilizationlikeoursmusteitheradvanceorgoback;itcannotstandstill.Itisnotlikethosehomogeneouscivilizations,suchasthatoftheNileValley,whichmoldedmenfortheirplacesandputtheminitlikebricksintoapyramid.Itmuchmoreresemblesthatcivilizationwhoseriseandfalliswithinhistorictimes,andfromwhichitsprung.

Thereisjustnowadispositiontoscoffatanyimplicationthatwearenotinallrespectsprogressing,andthespiritofourtimesisthatoftheedictwhichtheflatteringpremierproposedtotheChineseEmperorwhoburnedtheancientbooks—“thatallwhomaydaretospeaktogetherabouttheSheandtheShoobeputtodeath;thatthosewhomakementionofthepastsoastoblamethepresentbeputtodeathalongwiththeirrelatives.”

Yetitisevidentthattherehavebeentimesofdecline,justastherehavebeentimesofadvance;anditisfurtherevidentthattheseepochsofdeclinecouldnotatfirsthavebeengenerallyrecognized.

Hewouldhavebeenarashmanwho,whenAugustuswaschangingtheRomeofbricktotheRomeofmarble,whenwealthwasaugmentingandmagnificenceincreasing,whenvictoriouslegionswereextendingthe

frontier,whenmannerswerebecomingmorerefined,languagemorepolished,andliteraturerisingtohighersplendors—hewouldhavebeenarashmanwhothenwouldhavesaidthatRomewasenteringherdecline.Yetsuchwasthecase.

Andwhoeverwilllookmayseethatthoughourcivilizationisapparentlyadvancingwithgreaterrapiditythanever,thesamecausewhichturnedRomanprogressintoretrogressionisoperatingnow.

Whathasdestroyedeverypreviouscivilizationhasbeenthetendencytotheunequaldistributionofwealthandpower.Thissametendency,operatingwithincreasingforce,isobservableinourcivilizationto-day,showingitselfineveryprogressivecommunity,andwithgreaterintensitythemoreprogressivethecommunity.Wagesandinteresttendconstantlytofall,renttorise,therichtobecomeverymuchricher,thepoortobecomemorehelplessandhopeless,andthemiddleclasstobesweptaway.

Ihavetracedthistendencytoitscause.Ihaveshownbywhatsimplemeansthiscausemayberemoved.Inowwishtopointouthow,ifthisisnotdone,progressmustturntodecadence,andmoderncivilizationdeclinetobarbarism,ashaveallpreviouscivilizations.Itisworthwhiletopointouthowthismayoccur,asmanypeople,beingunabletoseehowprogressmaypassintoretrogression,conceivesuchathingimpossible.Gibbon,forinstance,thoughtthatmoderncivilizationcouldneverbedestroyedbecausethereremainednobarbarianstooverrunit,anditisacommonideathattheinventionofprintingbysomultiplyingbookshaspreventedthepossibilityofknowledgeeveragainbeinglost.

Theconditionsofsocialprogress,aswehavetracedthelaw,areassociationandequality.Thegeneraltendencyofmoderndevelopment,sincethetimewhenwecanfirstdiscernthegleamsofcivilizationinthedarknesswhichfollowedthefalloftheWesternEmpire,hasbeentowardpoliticalandlegalequality—totheabolitionofslavery;totheabrogation

ofstatus;tothesweepingawayofhereditaryprivileges;tothesubstitutionofparliamentaryforarbitrarygovernment;totherightofprivatejudgmentinmattersofreligion;tothemoreequalsecurityinpersonandpropertyofhighandlow,weakandstrong;tothegreaterfreedomofmovementandoccupation,ofspeechandofthepress.Thehistoryofmoderncivilizationisthehistoryofadvancesinthisdirection—ofthestrugglesandtriumphsofpersonal,political,andreligiousfreedom.Andthegenerallawisshownbythefactthatjustasthistendencyhasasserteditselfcivilizationhasadvanced,whilejustasithasbeenrepressedorforcedbackcivilizationhasbeenchecked.

ThistendencyhasreacheditsfullexpressionintheAmericanRepublic,wherepoliticalandlegalrightsareabsolutelyequal,and,owingtothesystemofrotationinoffice,eventhegrowthofabureaucracyisprevented;whereeveryreligiousbeliefornon-beliefstandsonthesamefooting;whereeveryboymayhopetobePresident,everymanhasanequalvoiceinpublicaffairs,andeveryofficialismediatelyorimmediatelydependentfortheshortleaseofhisplaceuponapopularvote.ThistendencyhasyetsometriumphstowininEngland,inextendingthesuffrage,andsweepingawaythevestigesofmonarchy,aristocracy,andprelacy;whileinsuchcountriesasGermanyandRussia,wheredivinerightisyetagooddealmorethanalegalfiction,ithasaconsiderabledistancetogo.Butitistheprevailingtendency,andhowsoonEuropewillbecompletelyrepublicanisonlyamatteroftime,orratherofaccident.TheUnitedStatesarethereforeinthisrespect,themostadvancedofallthegreatnations,inadirectioninwhichallareadvancing,andintheUnitedStatesweseejusthowmuchthistendencytopersonalandpoliticalfreedomcanofitselfaccomplish.

Now,thefirsteffectofthetendencytopoliticalequalitywastothemoreequaldistributionofwealthandpower;for,whilepopulationiscomparativelysparse,inequalityinthedistributionofwealthisprincipallyduetotheinequalityofpersonalrights,anditisonlyasmaterialprogressgoesonthatthetendencytoinequalityinvolvedinthe

reductionoflandtoprivateownershipstronglyappears.Butitisnowmanifestthatabsolutepoliticalequalitydoesnotinitselfpreventthetendencytoinequalityinvolvedintheprivateownershipofland,anditisfurtherevidentthatpoliticalequality,coexistingwithanincreasingtendencytotheunequaldistributionofwealth,mustultimatelybegeteitherthedespotismoforganizedtyrannyortheworsedespotismofanarchy.

Toturnarepublicangovernmentintoadespotismthebasestandmostbrutal,itisnotnecessaryformallytochangeitsconstitutionorabandonpopularelections.ItwascenturiesafterCæsarbeforetheabsolutemasteroftheRomanworldpretendedtoruleotherthanbyauthorityofaSenatethattrembledbeforehim.

Butformsarenothingwhensubstancehasgone,andtheformsofpopulargovernmentarethosefromwhichthesubstanceoffreedommaymosteasilygo.Extremesmeet,andagovernmentofuniversalsuffrageandtheoreticalequalitymay,underconditionswhichimpelthechange,mostreadilybecomeadespotism.Fortheredespotismadvancesinthenameandwiththemightofthepeople.Thesinglesourceofpoweroncesecured,everythingissecured.Thereisnounfranchisedclasstowhomappealmaybemade,noprivilegedorderswhoindefendingtheirownrightsmaydefendthoseofall.Nobulwarkremainstostaytheflood,noeminencetoriseaboveit.TheywerebeltedbaronsledbyamiteredarchbishopwhocurbedthePlantagenetwithMagnaCharta;itwasthemiddleclasseswhobroketheprideoftheStuarts;butamerearistocracyofwealthwillneverstrugglewhileitcanhopetobribeatyrant.

Andwhenthedisparityofconditionincreases,sodoesuniversalsuffragemakeiteasytoseizethesourceofpower,forthegreateristheproportionofpowerinthehandsofthosewhofeelnodirectinterestintheconductofgovernment;who,torturedbywantandembrutedbypoverty,arereadytoselltheirvotestothehighestbidderorfollowtheleadofthemostblatantdemagogue;orwho,madebitterbyhardships,mayevenlook

uponprofligateandtyrannousgovernmentwiththesatisfactionwemayimaginetheproletariansandslavesofRometohavefelt,astheysawaCaligulaorNeroragingamongtherichpatricians.Givenacommunitywithrepublicaninstitutions,inwhichoneclassistoorichtobeshornofitsluxuries,nomatterhowpublicaffairsareadministered,andanothersopoorthatafewdollarsonelectiondaywillseemmorethananyabstractconsideration;inwhichthefewrollinwealthandthemanyseethewithdiscontentataconditionofthingstheyknownothowtoremedy,andpowermustpassintothehandsofjobberswhowillbuyandsellitasthePrætorianssoldtheRomanpurple,orintothehandsofdemagogueswhowillseizeandwielditforatime,onlytobedisplacedbyworsedemagogues.

Wherethereisanythinglikeanequaldistributionofwealth—thatistosay,wherethereisgeneralpatriotism,virtue,andintelligence—themoredemocraticthegovernmentthebetteritwillbe;butwherethereisgrossinequalityinthedistributionofwealth,themoredemocraticthegovernmenttheworseitwillbe;for,whilerottendemocracymaynotinitselfbeworsethanrottenautocracy,itseffectsuponnationalcharacterwillbeworse.Togivethesuffragetotramps,topaupers,tomentowhomthechancetolaborisaboon,tomenwhomustbeg,orsteal,orstarve,istoinvokedestruction.Toputpoliticalpowerinthehandsofmenembitteredanddegradedbypovertyistotiefirebrandstofoxesandturnthemlooseamidthestandingcorn;itistoputout,theeyesofaSamsonandtotwinehisarmsaroundthepillarsofnationallife.

Eventheaccidentsofhereditarysuccessionorofselectionbylot,theplanofsomeoftheancientrepublics,maysometimesplacethewiseandjustinpower;butinacorruptdemocracythetendencyisalwaystogivepowertotheworst.Honestyandpatriotismareweighted,andunscrupulousnesscommandssuccess.Thebestgravitatetothebottom,theworstfloattothetop,andthevilewillonlybeoustedbytheviler.Whileasnationalcharactermustgraduallyassimilatetothequalitiesthatwinpower,andconsequentlyrespect,thatdemoralizationofopiniongoes

onwhichinthelongpanoramaofhistorywemayseeoverandoveragaintransmutingracesoffreemenintoracesofslaves.

AsinEnglandinthelastcentury,whenParliamentwasbutaclosecorporationofthearistocracy,acorruptoligarchyclearlyfencedofffromthemassesmayexistwithoutmucheffectonnationalcharacter,becauseinthatcasepowerisassociatedinthepopularmindwithotherthingsthancorruption.Butwheretherearenohereditarydistinctions,andmenarehabituallyseentoraisethemselvesbycorruptqualitiesfromthelowestplacestowealthandpower,toleranceofthesequalitiesfinallybecomesadmiration.Acorruptdemocraticgovernmentmustfinallycorruptthepeople,andwhenapeoplebecomecorruptthereisnoresurrection.Thelifeisgone,onlythecarcassremains;anditisleftbutfortheplowsharesoffatetoburyitoutofsight.

Nowthistransformationofpopulargovernmentintodespotismofthevilestandmostdegradingkind,whichmustinevitablyresultfromtheunequaldistributionofwealth,isnotathingofthefarfuture.IthasalreadybegunintheUnitedStates,andisrapidlygoingonunderoureyes.Thatourlegislativebodiesaresteadilydeterioratinginstandard;thatmenofthehighestabilityandcharacterarecompelledtoeschewpolitics,andtheartsofthejobbercountformorethanthereputationofthestatesman;thatvotingisdonemorerecklesslyandthepowerofmoneyisincreasing;thatitishardertoarousethepeopletothenecessityofreformsandmoredifficulttocarrythemout;thatpoliticaldifferencesareceasingtobedifferencesofprinciple,andabstractideasarelosingtheirpower;thatpartiesarepassingintothecontrolofwhatingeneralgovernmentwouldbeoligarchiesanddictatorships;areallevidencesofpoliticaldecline.

Thetypeofmoderngrowthisthegreatcity.Herearetobefoundthegreatestwealthandthedeepestpoverty.Anditisherethatpopulargovernmenthasmostclearlybrokendown.InallthegreatAmericancitiesthereisto-dayasclearlydefinedarulingclassasinthemost

aristocraticcountriesoftheworld.Itsmemberscarrywardsintheirpockets,makeuptheslatesfornominatingconventions,distributeofficesastheybargaintogether,and—thoughtheytoilnot,neitherdotheyspin—wearthebestofraimentandspendmoneylavishly.Theyaremenofpower,whosefavortheambitiousmustcourtandwhosevengeancehemustavoid.Whoarethesemen?Thewise,thegood,thelearned—menwhohaveearnedtheconfidenceoftheirfellowcitizensbythepurityoftheirlives,thesplendoroftheirtalents,theirprobityinpublictrusts,theirdeepstudyoftheproblemsofgovernment?No;theyaregamblers,saloonkeepers,pugilists,orworse,whohavemadeatradeofcontrollingvotesandofbuyingandsellingofficesandofficialacts.TheystandtothegovernmentofthesecitiesasthePrætorianGuardsdidtothatofdecliningRome.Hewhowouldwearthepurple,fillthecurulechair,orhavethefascescarriedbeforehim,mustgoorsendhismessengerstotheircamps,givethemdonativesandmakethempromises.ItisthroughthesementhattherichcorporationsandpowerfulpecuniaryinterestscanpacktheSenateandthebenchwiththeircreatures.ItisthesemenwhomakeSchoolDirectors,Supervisors,Assessors,membersoftheLegislature,Congressmen.Why,therearemanyelectiondistrictsintheUnitedStatesinwhichaGeorgeWashington,aBenjaminFranklinoraThomasJeffersoncouldnomoregotothelowerhouseofastatelegislaturethanundertheAncientRégimeabase-bornpeasantcouldbecomeaMarshalofFrance.Theirverycharacterwouldbeaninsuperabledisqualification.

Intheoryweareintensedemocrats.TheproposaltosacrificeswineinthetemplewouldhardlyhaveexcitedgreaterhorrorandindignationinJerusalemofoldthanwouldamongusthatofconferringadistinctionofrankuponourmosteminentcitizen.Butistherenotgrowingupamongusaclasswhohaveallthepowerwithoutanyofthevirtuesofaristocracy?Wehavesimplecitizenswhocontrolthousandsofmilesofrailroad,millionsofacresofland,themeansoflivelihoodofgreatnumbersofmen;whonametheGovernorsofsovereignStatesastheynametheirclerks,chooseSenatorsastheychooseattorneys,andwhose

willisassupremewithLegislaturesasthatofaFrenchKingsittinginbedofjustice.Theundercurrentsofthetimesseemtosweepusbackagaintotheoldconditionsfromwhichwedreamedwehadescaped.Thedevelopmentoftheartisanandcommercialclassesgraduallybrokedownfeudalismafterithadbecomesocompletethatmenthoughtheavenasorganizedonafeudalbasis,andrankedthefirstandsecondpersonsoftheTrinityassuzerainandtenant-in-chief.Butnowthedevelopmentofmanufacturesandexchange,actinginasocialorganizationinwhichlandismadeprivateproperty,threatenstocompeleveryworkertoseekamaster,astheinsecuritywhichfollowedthefinalbreak-upoftheRomanEmpirecompelledeveryfreemantoseekalord.Nothingseemsexemptfromthistendency.Industryeverywheretendstoassumeaforminwhichoneismasterandmanyserve.Andwhenoneismasterandtheothersserve,theonewillcontroltheothers,eveninsuchmattersasvotes.JustastheEnglishlandlordvoteshistenants,sodoestheNewEnglandmillownervotehisoperatives.

Thereisnomistakingit—theveryfoundationsofsocietyarebeingsappedbeforeoureyes,whileweask,howisitpossiblethatsuchacivilizationasthis,withitsrailroads,anddailynewspapers,andelectrictelegraphs,shouldeverbedestroyed?Whileliteraturebreathesbutthebeliefthatwehavebeen,are,andforthefuturemustbe,leavingthesavagestatefurtherandfurtherbehindus,thereareindicationsthatweareactuallyturningbackagaintowardbarbarism.Letmeillustrate:Oneofthecharacteristicsofbarbarismisthelowregardfortherightsofpersonandofproperty.ThatthelawsofourAnglo-Saxonancestorsimposedaspenaltyformurderafineproportionedtotherankofthevictim,whileourlawknowsnodistinctionofrank,andprotectsthelowestfromthehighest,thepoorestfromtherichest,bytheuniformpenaltyofdeath,islookeduponasevidenceoftheirbarbarismandourcivilization.Andso,thatpiracy,androbbery,andslave-trading,andblackmailing,wereonceregardedaslegitimateoccupations,isconclusiveproofoftherudestateofdevelopmentfromwhichwehavesofarprogressed.

Butitisamatteroffactthat,inspiteofourlaws,anyonewhohasmoneyenoughandwantstokillanothermaygointoanyoneofourgreatcentersofpopulationandbusiness,andgratifyhisdesire,andthensurrenderhimselftojustice,withthechancesasahundredtoonethathewillsuffernogreaterpenaltythanatemporaryimprisonmentandthelossofasumproportionedpartlytohisownwealthandpartlytothewealthandstandingofthemanhekills.Hismoneywillbepaid,nottothefamilyofthemurderedman,whohavelosttheirprotector;nottotheState,whichhaslostacitizen;buttolawyerswhounderstandhowtosecuredelays,tofindwitnesses,andgetjuriestodisagree.

Andso,ifamanstealenough,hemaybesurethathispunishmentwillpracticallyamountbuttothelossofapartoftheproceedsofhistheft;andifhestealenoughtogetoffwithafortune,hewillbegreetedbyhisacquaintancesasavikingmighthavebeengreetedafterasuccessfulcruise.Eventhoughherobbedthosewhotrustedhim;eventhoughherobbedthewidowandthefatherless;hehasonlytogetenough,andhemaysafelyflaunthiswealthintheeyesofday.

Now,thetendencyinthisdirectionisanincreasingone.Itisshowningreatestforcewheretheinequalitiesinthedistributionofwealtharegreatest,anditshowsitselfastheyincrease.Ifitbenotareturntobarbarism,whatisit?ThefailuresofjusticetowhichIhavealludedareonlyillustrativeoftheincreasingdebilityofourlegalmachineryineverydepartment.Itisbecomingcommontohearmensaythatitwouldbebettertoreverttofirstprinciplesandabolishlaw,fortheninself-defensethepeoplewouldformVigilanceCommitteesandtakejusticeintotheirownhands.Isthisindicativeofadvanceorretrogression?

Allthisismatterofcommonobservation.Thoughwemaynotspeakitopenly,thegeneralfaithinrepublicaninstitutionsis,wheretheyhavereachedtheirfullestdevelopment,narrowingandweakening.Itisnolongerthatconfidentbeliefinrepublicanismasthesourceofnationalblessingsthatitoncewas.Thoughtfulmenarebeginningtoseeits

dangers,withoutseeinghowtoescapethem;arebeginningtoaccepttheviewofMacaulayanddistrustthatofJefferson.Andthepeopleatlargearebecomingusedtothegrowingcorruption.ThemostominouspoliticalsignintheUnitedStatesto-dayisthegrowthofasentimentwhicheitherdoubtstheexistenceofanhonestmaninpublicofficeorlooksonhimasafoolfornotseizinghisopportunities.Thatistosay,thepeoplethemselvesarebecomingcorrupted.ThusintheUnitedStatesto-dayisrepublicangovernmentrunningthecourseitmustinevitablyfollowunderconditionswhichcausetheunequaldistributionofwealth.

Wherethatcourseleadsiscleartowhoeverwillthink.Ascorruptionbecomeschronic;aspublicspiritislost;astraditionsofhonor,virtue,andpatriotismareweakened;aslawisbroughtintocontemptandreformsbecomehopeless;theninthefesteringmasswillbegeneratedvolcanicforces,whichshatterandrendwhenseemingaccidentgivesthemvent.Strong,unscrupulousmen,risingupuponoccasion,willbecometheexponentsofblindpopulardesiresorfiercepopularpassions,anddashasideformsthathavelosttheirvitality.Theswordwillagainbemightierthanthepen,andincarnivalsofdestructionbruteforceandwildfrenzywillalternatewiththelethargyofadecliningcivilization.

IspeakoftheUnitedStatesonlybecausetheUnitedStatesisthemostadvancedofallthegreatnations.WhatshallwesayofEurope,wheredamsofancientlawandcustompenuptheswellingwatersandstandingarmiesweighdownthesafetyvalves,thoughyearbyyearthefiresgrowhotterunderneath?Europetendstorepublicanismunderconditionsthatwillnotadmitoftruerepublicanism—underconditionsthatsubstituteforthecalmandaugustfigureofLibertythepetroleuseandtheguillotine!

Whenceshallcomethenewbarbarians?Gothroughthesqualidquartersofgreatcities,andyoumaysee,evennow,theirgatheringhordes!Howshalllearningperish?Menwillceasetoread,andbookswillkindlefiresandbeturnedintocartridges!

Itisstartlingtothinkhowslightthetracesthatwouldbeleftofourcivilizationdiditpassthroughthethroeswhichhaveaccompaniedthedeclineofeverypreviouscivilization.Paperwillnotlastlikeparchment,norareourmostmassivebuildingsandmonumentstobecomparedinsoliditywiththerock-hewntemplesandtitanicedificesoftheoldcivilizations.Andinventionhasgivenus,notmerelythesteamengineandtheprintingpress,butpetroleum,nitro-glycerine,anddynamite.

Yettohint,to-day,thatourcivilizationmaypossiblybetendingtodecline,seemslikethewildnessofpessimism.ThespecialtendenciestowhichIhavealludedareobvioustothinkingmen,butwiththemajorityofthinkingmen,aswiththegreatmasses,thebeliefinsubstantialprogressisyetdeepandstrong—afundamentalbeliefwhichadmitsnottheshadowofadoubt.

Butanyonewhowillthinkoverthematterwillseethatthismustnecessarilybethecasewhereadvancegraduallypassesintoretrogression.Forinsocialdevelopment,asineverythingelse,motiontendstopersistinstraightlines,andtherefore,wheretherehasbeenapreviousadvance,itisextremelydifficulttorecognizedecline,evenwhenithasfullycommenced;thereisanalmostirresistibletendencytobelievethattheforwardmovementwhichhasbeenadvance,andisstillgoingon,isstilladvance.Thewebofbeliefs,customs,laws,institutions,andhabitsofthought,whicheachcommunityisconstantlyspinning,andwhichproducesintheindividualenvironedbyitallthedifferencesofnationalcharacter,isneverunraveled.Thatistosay,inthedeclineofcivilization,communitiesdonotgodownbythesamepathsthattheycameup.Forinstance,thedeclineofcivilizationasmanifestedingovernmentwouldnottakeusbackfromrepublicanismtoconstitutionalmonarchy,andthencetothefeudalsystem;itwouldtakeustoimperatorshipandanarchy.Asmanifestedinreligion,itwouldnottakeusbackintothefaithsofourforefathers,intoProtestantismorCatholicity,butintonewformsofsuperstition,ofwhichpossiblyMormonismandotherevengrosser“isms”maygivesomevagueidea.As

manifestedinknowledge,itwouldnottakeustowardBacon,buttowardtheliteratiofChina.

Andhowtheretrogressionofcivilization,followingaperiodofadvance,maybesogradualastoattractnoattentionatthetime;nay,howthatdeclinemustnecessarily,bythegreatmajorityofmen,bemistakenforadvance,iseasilyseen.Forinstance,thereisanenormousdifferencebetweenGrecianartoftheclassicperiodandthatofthelowerempire;yetthechangewasaccompanied,orrathercaused,byachangeoftaste.Theartistswhomostquicklyfollowedthischangeoftastewereintheirdayregardedasthesuperiorartists.Andsoofliterature.Asitbecamemorevapid,puerile,andstilted,itwouldbeinobediencetoanalteredtaste,whichwouldregarditsincreasingweaknessasincreasingstrengthandbeauty.Thereallygoodwriterwouldnotfindreaders;hewouldberegardedasrude,dry,ordull.Andsowouldthedramadecline;notbecausetherewasalackofgoodplays,butbecausetheprevailingtastebecamemoreandmorethatofalessculturedclass,who,ofcourse,regardthatwhichtheymostadmireasthebestofitskind.Andso,too,ofreligion;thesuperstitionswhichasuperstitiouspeoplewilladdtoitwillberegardedbythemasimprovements.While,asthedeclinegoeson,thereturntobarbarism,whereitisnotinitselfregardedasanadvance,willseemnecessarytomeettheexigenciesofthetimes.

Forinstance,flogging,asapunishmentforcertainoffenses,hasbeenrecentlyrestoredtothepenalcodeofEngland,andhasbeenstronglyadvocatedonthissideoftheAtlantic.Iexpressnoopinionastowhetherthisisorisnotabetterpunishmentforcrimethanimprisonment.Ionlypointtothefactasillustratinghowanincreasingamountofcrimeandanincreasingembarrassmentastothemaintenanceofprisoners,bothobvioustendenciesatpresent,mightleadtoafullerreturntothephysicalcrueltyofbarbarouscodes.Theuseoftortureinjudicialinvestigations,whichsteadilygrewwiththedeclineofRomancivilization,itisthuseasytosee,might,asmannersbrutalizedandcrimeincreased,bedemandedasanecessaryimprovementofthecriminallaw.

Whetherinthepresentdriftsofopinionandtastethereareasyetanyindicationsofretrogression,itisnotnecessarytoinquire;buttherearemanythingsaboutwhichtherecanbenodispute,whichgotoshowthatourcivilizationhasreachedacriticalperiod,andthatunlessanewstartismadeinthedirectionofsocialequality,thenineteenthcenturymaytothefuturemarkitsclimax.Theseindustrialdepressions,whichcauseasmuchwasteandsufferingasfaminesorwars,arelikethetwingesandshockswhichprecedeparalysis.Everywhereisitevidentthatthetendencytoinequality,whichisthenecessaryresultofmaterialprogresswherelandismonopolized,cannotgomuchfurtherwithoutcarryingourcivilizationintothatdownwardpathwhichissoeasytoenterandsohardtoabandon.Everywheretheincreasingintensityofthestruggletolive,theincreasingnecessityforstrainingeverynervetopreventbeingthrowndownandtroddenunderfootinthescrambleforwealth,isdrainingtheforceswhichgainandmaintainimprovements.Ineverycivilizedcountrypauperism,crime,insanity,andsuicidesareincreasing.Ineverycivilizedcountrythediseasesareincreasingwhichcomefromoverstrainednerves,frominsufficientnourishment,fromsqualidlodgings,fromunwholesomeandmonotonousoccupations,fromprematurelaborofchildren,fromthetasksandcrimeswhichpovertyimposesuponwomen.Ineveryhighlycivilizedcountrytheexpectationoflife,whichgraduallyroseforseveralcenturies,andwhichseemstohaveculminatedaboutthefirstquarterofthiscentury,appearstobenowdiminishing.

Itisnotanadvancingcivilizationthatsuchfiguresshow.Itisacivilizationwhichinitsundercurrentshasalreadybeguntorecede.Whenthetideturnsinbayorriverfromfloodtoebb,itisnotallatonce;buthereitstillrunson,thoughthereithasbeguntorecede.Whenthesunpassesthemeridian,itcanbetoldonlybythewaytheshortshadowsfall;fortheheatofthedayyetincreases.Butassureastheturningtidemustsoonrunfullebb;assureasthedecliningsunmustbringdarkness,sosureisit,thatthoughknowledgeyetincreasesandinventionmarcheson,andnewstatesarebeingsettled,andcitiesstillexpand,yetcivilizationhasbeguntowanewhen,inproportiontopopulation,wemustbuildmore

andmoreprisons,moreandmorealmshouses,moreandmoreinsaneasylums.Itisnotfromtoptobottomthatsocietiesdie;itisfrombottomtotop.

Butthereareevidencesfarmorepalpablethananythatcanbegivenbystatistics,oftendenciestotheebbofcivilization.Thereisavaguebutgeneralfeelingofdisappointment;anincreasedbitternessamongtheworkingclasses;awidespreadfeelingofunrestandbroodingrevolution.Ifthiswereaccompaniedbyadefiniteideaofhowreliefistobeobtained,itwouldbeahopefulsign;butitisnot.Thoughtheschoolmasterhasbeenabroadsometime,thegeneralpoweroftracingeffecttocausedoesnotseemawhitimproved.Thereactiontowardprotectionism,asthereactiontowardotherexplodedfallaciesofgovernment,showsthis.Andeventhephilosophicfree-thinkercannotlookuponthatvastchangeinreligiousideasthatisnowsweepingoverthecivilizedworldwithoutfeelingthatthistremendousfactmayhavemostmomentousrelations,whichonlythefuturecandevelop.Forwhatisgoingonisnotachangeintheformofreligion,butthenegationanddestructionoftheideasfromwhichreligionsprings.Christianityisnotsimplyclearingitselfofsuperstitions,butinthepopularminditisdyingattheroot,astheoldpaganismsweredyingwhenChristianityenteredtheworld.AndnothingarisestotakeItsplace.ThefundamentalideasofanintelligentCreatorandofafuturelifeareinthegeneralmindrapidlyweakening.Now,whetherthismayormaynotbeinitselfanadvance,theimportanceofthepartwhichreligionhasplayedintheworld’shistoryshowstheimportanceofthechangethatisnowgoingon.Unlesshumannaturehassuddenlyalteredinwhattheuniversalhistoryoftheraceshowstobeitsdeepestcharacteristics,themightiestactionsandreactionsarethuspreparing.Suchstagesofthoughthaveheretoforealwaysmarkedperiodsoftransition.Onasmallerscaleandtoalessdepth(forIthinkanyonewhowillnoticethedriftofourliterature,andtalkuponsuchsubjectswiththemenhemeets,willseethatitissub-soilandnotsurfaceplowingthatmaterialisticideasarenowdoing),suchastateofthoughtprecededtheFrenchRevolution.Buttheclosestparalleltothewreckof

religiousideasnowgoingonistobefoundinthatperiodinwhichancientcivilizationbegantopassfromsplendortodecline.Whatchangemaycome,nomortalmancantell,butthatsomegreatchangemustcome,thoughtfulmenbegintofeel.Thecivilizedworldistremblingonthevergeofagreatmovement.Eitheritmustbealeapupward,whichwillopenthewaytoadvancesyetundreamedof,oritmustbeaplungedownwardwhichwillcarryusbacktowardbarbarism.

SeeMacaulay’slettertoRandall,thebiographerofJefferson.

Itisalso,itseemstome,instructivetonotehowinadequateandutterlymisleadingwouldbetheideaofourcivilizationwhichcouldbegainedfromthereligiousandfunerealmonumentsofourtime,whichareallwehavefromwhichtogainourideasoftheburiedcivilizations.

Statisticswhichshowthesethingsarecollectedinconvenientforminavolumeentitled“DeteriorationandRaceEducation,”bySamuelRoyce,whichhasbeenlargelydistributedbythevenerablePeterCooperofNewYork.Strangelyenough,theonlyremedyproposedbyMr.Royceistheestablishmentofkindergartenschools.

Inpointofconstructivestatesmanship—therecognitionoffundamentalprinciplesandtheadaptationofmeanstoends,theConstitutionoftheUnitedStates,adoptedacenturyago,isgreatlysuperiortothelatestStateConstitutions,themostrecentofwhichisthatofCalifornia—apieceofutterbotchwork.

[BacktoTableofContents]

ChapterVTheCentralTruth

Intheshortspacetowhichthislatterpartofourinquiryisnecessarilyconfined,IhavebeenobligedtoomitmuchthatIwouldliketosay,andtotouchbrieflywhereanexhaustiveconsiderationwouldnotbeoutofplace.

Nevertheless,this,atleast,isevident,thatthetruthtowhichwewereledinthepolitico-economicbranchofourinquiryisasclearlyapparentintheriseandfallofnationsandthegrowthanddecayofcivilizations,andthatitaccordswiththosedeep-seatedrecognitionsofrelationandsequencethatwedenominatemoralperceptions.Thushavebeengiventoourconclusionsthegreatestcertitudeandhighestsanction.

Thistruthinvolvesbothamenaceandapromise.Itshowsthattheevilsarisingfromtheunjustandunequaldistributionofwealth,whicharebecomingmoreandmoreapparentasmoderncivilizationgoeson,arenotincidentsofprogress,buttendencieswhichmustbringprogresstoahalt;thattheywillnotcurethemselves,but,onthecontrary,must,unlesstheircauseisremoved,growgreaterandgreater,untiltheysweepusbackintobarbarismbytheroadeverypreviouscivilizationhastrod.Butitalsoshowsthattheseevilsarenotimposedbynaturallaws;thattheyspringsolelyfromsocialmaladjustmentswhichignorenaturallaws,andthatinremovingtheircauseweshallbegivinganenormousimpetustoprogress.

Thepovertywhichinthemidstofabundancepinchesandembrutesmen,andallthemanifoldevilswhichflowfromit,springfromadenialofjustice.Inpermittingthemonopolizationoftheopportunitieswhichnaturefreelyofferstoall,wehaveignoredthefundamentallawofjustice—for,sofaraswecansee,whenweviewthingsuponalargescale,

justiceseemstobethesupremelawoftheuniverse.Butbysweepingawaythisinjusticeandassertingtherightsofallmentonaturalopportunities,weshallconformourselvestothelaw—weshallremovethegreatcauseofunnaturalinequalityinthedistributionofwealthandpower;weshallabolishpoverty;tametheruthlesspassionsofgreed;dryupthespringsofviceandmisery;lightindarkplacesthelampofknowledge;givenewvigortoinventionandafreshimpulsetodiscovery;substitutepoliticalstrengthforpoliticalweakness;andmaketyrannyandanarchyimpossible.

ThereformIhaveproposedaccordswithallthatispolitically,socially,ormorallydesirable.Ithasthequalitiesofatruereform,foritwillmakeallotherreformseasier.WhatisitbutthecarryingoutinletterandspiritofthetruthenunciatedintheDeclarationofIndependence—the“self-evident”truththatistheheartandsouloftheDeclaration—“Thatallmenarecreatedequal;thattheyareendowedbytheirCreatorwithcertainunalienablerights;thatamongthesearelife,liberty,andthepursuitofhappiness!”

Theserightsaredeniedwhentheequalrighttoland—onwhichandbywhichmenalonecanlive—isdenied.Equalityofpoliticalrightswillnotcompensateforthedenialoftheequalrighttothebountyofnature.Politicalliberty,whentheequalrighttolandisdenied,becomes,aspopulationincreasesandinventiongoeson,merelythelibertytocompeteforemploymentatstarvationwages.Thisisthetruththatwehaveignored.Andsotherecomebeggarsinourstreetsandtrampsonourroads;andpovertyenslavesmenwhoweboastarepoliticalsovereigns;andwantbreedsignorancethatourschoolscannotenlighten;andcitizensvoteastheirmastersdictate;andthedemagogueusurpsthepartofthestatesman;andgoldweighsinthescalesofjustice;andinhighplacessitthosewhodonotpaytocivicvirtueeventhecomplimentofhypocrisy;andthepillarsoftherepublicthatwethoughtsostrongalreadybendunderanincreasingstrain.

WehonorLibertyinnameandinform.Wesetupherstatuesandsoundherpraises.Butwehavenotfullytrustedher.Andwithourgrowthsogrowherdemands.Shewillhavenohalfservice!

Liberty!itisawordtoconjurewith,nottovextheearinemptyboastings.ForLibertymeansJustice,andJusticeisthenaturallaw—thelawofhealthandsymmetryandstrength,offraternityandco-operation.

TheywholookuponLibertyashavingaccomplishedhermissionwhenshehasabolishedhereditaryprivilegesandgivenmentheballot,whothinkofherashavingnofurtherrelationstotheeverydayaffairsoflife,havenotseenherrealgrandeur—tothemthepoetswhohavesungofhermustseemrhapsodists,andhermartyrsfools!Asthesunisthelordoflife,aswellasoflight;ashisbeamsnotmerelypiercetheclouds,butsupportallgrowth,supplyallmotion,andcallforthfromwhatwouldotherwisebeacoldandinertmassalltheinfinitediversitiesofbeingandbeauty,soislibertytomankind.Itisnotforanabstractionthatmenhavetoiledanddied;thatineveryagethewitnessesofLibertyhavestoodforth,andthemartyrsofLibertyhavesuffered.

WespeakofLibertyasonething,andofvirtue,wealth,knowledge,invention,nationalstrengthandnationalindependenceasotherthings.But,ofallthese,Libertyisthesource,themother,thenecessarycondition.Sheistovirtuewhatlightistocolor;towealthwhatsunshineistograin;toknowledgewhateyesaretosight.Sheisthegeniusofinvention,thebrawnofnationalstrength,thespiritofnationalindependence.WhereLibertyrises,therevirtuegrows,wealthincreases,knowledgeexpands,inventionmultiplieshumanpowers,andinstrengthandspiritthefreernationrisesamongherneighborsasSaulamidhisbrethren—tallerandfairer.WhereLibertysinks,therevirtuefades,wealthdiminishes,knowledgeisforgotten,inventionceases,andempiresoncemightyinarmsandartsbecomeahelplesspreytofreerbarbarians!

OnlyinbrokengleamsandpartiallighthasthesunofLibertyyetbeamed

amongmen,butallprogresshathshecalledforth.

LibertycametoaraceofslavescrouchingunderEgyptianwhips,andledthemforthfromtheHouseofBondage.Shehardenedtheminthedesertandmadeofthemaraceofconquerors.ThefreespiritoftheMosaiclawtooktheirthinkersuptoheightswheretheybeheldtheunityofGod,andinspiredtheirpoetswithstrainsthatyetphrasethehighestexaltationsofthought.LibertydawnedonthePhœniciancoast,andshipspassedthePillarsofHerculestoplowtheunknownsea.SheshedapartiallightonGreece,andmarblegrewtoshapesofidealbeauty,wordsbecametheinstrumentsofsubtlestthought,andagainstthescantymilitiaoffreecitiesthecountlesshostsoftheGreatKingbrokelikesurgesagainstarock.Shecastherbeamsonthefour-acrefarmsofItalianhusbandmen,andbornofherstrengthapowercameforththatconqueredtheworld.TheyglintedfromshieldsofGermanwarriors,andAugustuswepthislegions.Outofthenightthatfollowedhereclipse,herslantingraysfellagainonfreecities,andalostlearningrevived,moderncivilizationbegan,anewworldwasunveiled;andasLibertygrew,sogrewart,wealth,power,knowledge,andrefinement.Inthehistoryofeverynationwemayreadthesametruth.ItwasthestrengthbornofMagnaChartathatwonCrecyandAgincourt.ItwastherevivalofLibertyfromthedespotismoftheTudorsthatglorifiedtheElizabethanage.Itwasthespiritthatbroughtacrownedtyranttotheblockthatplantedheretheseedofamightytree.Itwastheenergyofancientfreedomthat,themomentithadgainedunity,madeSpainthemightiestpoweroftheworld,onlytofalltothelowestdepthofweaknesswhentyrannysucceededliberty.See,inFrance,allintellectualvigordyingunderthetyrannyoftheSeventeenthCenturytoreviveinsplendorasLibertyawokeintheEighteenth,andontheenfranchisementofFrenchpeasantsintheGreatRevolution,basingthewonderfulstrengththathasinourtimedefieddefeat.

Shallwenottrusther?

Inourtime,asintimesbefore,creepontheinsidiousforcesthat,producinginequality,destroyLiberty.Onthehorizonthecloudsbegintolower.Libertycallstousagain.Wemustfollowherfurther;wemusttrustherfully.Eitherwemustwhollyacceptherorshewillnotstay.Itisnotenoughthatmenshouldvote;itisnotenoughthattheyshouldbetheoreticallyequalbeforethelaw.Theymusthavelibertytoavailthemselvesoftheopportunitiesandmeansoflife;theymuststandonequaltermswithreferencetothebountyofnature.Eitherthis,orLibertywithdrawsherlight!Eitherthis,ordarknesscomeson,andtheveryforcesthatprogresshasevolvedturntopowersthatworkdestruction.Thisistheuniversallaw.Thisisthelessonofthecenturies.Unlessitsfoundationsbelaidinjusticethesocialstructurecannotstand.

Ourprimarysocialadjustmentisadenialofjustice.Inallowingonemantoownthelandonwhichandfromwhichothermenmustlive,wehavemadethemhisbondsmeninadegreewhichincreasesasmaterialprogressgoeson.Thisisthesubtilealchemythatinwaystheydonotrealizeisextractingfromthemassesineverycivilizedcountrythefruitsoftheirwearytoil;thatisinstitutingaharderandmorehopelessslaveryinplaceofthatwhichhasbeendestroyed;thatisbringingpoliticaldespotismoutofpoliticalfreedom,andmustsoontransmutedemocraticinstitutionsintoanarchy.

Itisthisthatturnstheblessingsofmaterialprogressintoacurse.Itisthisthatcrowdshumanbeingsintonoisomecellarsandsqualidtenementhouses;thatfillsprisonsandbrothels;thatgoadsmenwithwantandconsumesthemwithgreed;thatrobswomenofthegraceandbeautyofperfectwomanhood;thattakesfromlittlechildrenthejoyandinnocenceoflife’smorning.

Civilizationsobasedcannotcontinue.Theeternallawsoftheuniverseforbidit.Ruinsofdeadempirestestify,andthewitnessthatisineverysoulanswers,thatitcannotbe.ItissomethinggranderthanBenevolence,somethingmoreaugustthanCharity—itisJusticeherselfthatdemands

ofustorightthiswrong.Justicethatwillnotbedenied;thatcannotbeputoff—Justicethatwiththescalescarriesthesword.Shallwewardthestrokewithliturgiesandprayers?Shallweavertthedecreesofimmutablelawbyraisingchurcheswhenhungryinfantsmoanandwearymothersweep?

Thoughitmaytakethelanguageofprayer,itisblasphemythatattributestotheinscrutabledecreesofProvidencethesufferingandbrutishnessthatcomeofpoverty;thatturnswithfoldedhandstotheAll-FatherandlaysonHimtheresponsibilityforthewantandcrimeofourgreatcities.WedegradetheEverlasting.WeslandertheJustOne.Amercifulmanwouldhavebetterorderedtheworld;ajustmanwouldcrushwithhisfootsuchanulcerousant-hill!ItisnottheAlmighty,butwewhoareresponsiblefortheviceandmiserythatfesteramidourcivilization.TheCreatorshowersuponushisgifts—morethanenoughforall.Butlikeswinescramblingforfood,wetreadtheminthemire—treadtheminthemire,whilewetearandrendeachother!

Intheverycentersofourcivilizationto-dayarewantandsufferingenoughtomakesickatheartwhoeverdoesnotclosehiseyesandsteelhisnerves.DareweturntotheCreatorandaskHimtorelieveit?Supposingtheprayerwereheard,andatthebehestwithwhichtheuniversesprangintobeingthereshouldglowinthesunagreaterpower;newvirtuefilltheair;freshvigorthesoil;thatforeverybladeofgrassthatnowgrowstwoshouldspringup,andtheseedthatnowincreasesfifty-foldshouldincreaseahundred-fold!Wouldpovertybeabatedorwantrelieved?Manifestlyno!Whateverbenefitwouldaccruewouldbebuttemporary.Thenewpowersstreamingthroughthematerialuniversecouldbeutilizedonlythroughland.Andland,beingprivateproperty,theclassesthatnowmonopolizethebountyoftheCreatorwouldmonopolizeallthenewbounty.Landownerswouldalonebebenefited.Rentswouldincrease,butwageswouldstilltendtothestarvationpoint!

Thisisnotmerelyadeductionofpoliticaleconomy;itisafactof

experience.Weknowitbecausewehaveseenit.Withinourowntimes,underourveryeyes,thatPowerwhichisaboveall,andinall,andthroughall;thatPowerofwhichthewholeuniverseisbutthemanifestation;thatPowerwhichmakethallthings,andwithoutwhichisnotanythingmadethatismade,hasincreasedthebountywhichmenmayenjoy,astrulyasthoughthefertilityofnaturehadbeenincreased.Intothemindofonecamethethoughtthatharnessedsteamfortheserviceofmankind.Totheinnerearofanotherwaswhisperedthesecretthatcompelsthelightningtobearamessageroundtheglobe.Ineverydirectionhavethelawsofmatterbeenrevealed;ineverydepartmentofindustryhavearisenarmsofironandfingersofsteel,whoseeffectupontheproductionofwealthhasbeenpreciselythesameasanincreaseinthefertilityofnature.Whathasbeentheresult?Simplythatlandownersgetallthegain.Thewonderfuldiscoveriesandinventionsofourcenturyhaveneitherincreasedwagesnorlightenedtoil.Theeffecthassimplybeentomakethefewricher;themanymorehelpless!

CanitbethatthegiftsoftheCreatormaybethusmisappropriatedwithimpunity?Isitalightthingthatlaborshouldberobbedofitsearningswhilegreedrollsinwealth—thatthemanyshouldwantwhilethefewaresurfeited?Turntohistory,andoneverypagemaybereadthelessonthatsuchwrongnevergoesunpunished;thattheNemesisthatfollowsinjusticeneverfaltersnorsleeps!Lookaroundto-day.Canthisstateofthingscontinue?Mayweevensay,“Afterusthedeluge!”Nay;thepillarsoftheStatearetremblingevennow,andtheveryfoundationsofsocietybegintoquiverwithpent-upforcesthatglowunderneath.Thestrugglethatmusteitherrevivify,orconvulseinruin,isnearathand,ifitbenotalreadybegun.

Thefiathasgoneforth!Withsteamandelectricity,andthenewpowersbornofprogress,forceshaveenteredtheworldthatwilleithercompelustoahigherplaneoroverwhelmus,asnationafternation,ascivilizationaftercivilization,havebeenoverwhelmedbefore.Itisthedelusionwhichprecedesdestructionthatseesinthepopularunrestwithwhichthe

civilizedworldisfeverishlypulsingonlythepassingeffectofephemeralcauses.Betweendemocraticideasandthearistocraticadjustmentsofsocietythereisanirreconcilableconflict.HereintheUnitedStates,asthereinEurope,itmaybeseenarising.Wecannotgoonpermittingmentovoteandforcingthemtotramp.Wecannotgooneducatingboysandgirlsinourpublicschoolsandthenrefusingthemtherighttoearnanhonestliving.WecannotgoonpratingoftheinalienablerightsofmanandthendenyingtheinalienablerighttothebountyoftheCreator.Evennow,inoldbottlesthenewwinebeginstoferment,andelementalforcesgatherforthestrife!

Butif,whilethereisyettime,weturntoJusticeandobeyher,ifwetrustLibertyandfollowher,thedangersthatnowthreatenmustdisappear,theforcesthatnowmenacewillturntoagenciesofelevation.Thinkofthepowersnowwasted;oftheinfinitefieldsofknowledgeyettobeexplored;ofthepossibilitiesofwhichthewondrousinventionsofthiscenturygiveusbutahint.Withwantdestroyed;withgreedchangedtonoblepassions;withthefraternitythatisbornofequalitytakingtheplaceofthejealousyandfearthatnowarraymenagainsteachother;withmentalpowerloosedbyconditionsthatgivetothehumblestcomfortandleisure;andwhoshallmeasuretheheightstowhichourcivilizationmaysoar?Wordsfailthethought!ItistheGoldenAgeofwhichpoetshavesungandhigh-raisedseershavetoldinmetaphor!Itisthegloriousvisionwhichhasalwayshauntedmanwithgleamsoffitfulsplendor.ItiswhathesawwhoseeyesatPatmoswereclosedinatrance.ItistheculminationofChristianity—theCityofGodonearth,withitswallsofjasperanditsgatesofpearl!ItisthereignofthePrinceofPeace!

[BacktoTableofContents]

ConclusionTHEPROBLEMOFINDIVIDUALLIFE

ThedaysofthenationsbearnotraceOfallthesunshinesofarforetold;Thecannonspeaksintheteacher’splace—Theageiswearywithworkandgold,Andhighhopeswither,andmemorieswane;Onhearthsandaltarsthefiresaredead;Butthatbravefaithhathnotlivedinvain—Andthisisallthatourwatchersaid.

—FrancisBrown.

ConclusionTHEPROBLEMOFINDIVIDUALLIFE

Mytaskisdone.

Yetthethoughtstillmounts.Theproblemswehavebeenconsideringleadintoaproblemhigheranddeeperstill.Behindtheproblemsofsociallifeliestheproblemofindividuallife.Ihavefounditimpossibletothinkoftheonewithoutthinkingoftheother,andso,Iimagine,willitbewiththosewho,readingthisbook,gowithmeinthought.For,assaysGuizot,“whenthehistoryofcivilizationiscompleted,whenthereisnothingmoretosayastoourpresentexistence,maninevitablyaskshimselfwhetherallisexhausted,whetherhehasreachedtheendofallthings?”

ThisproblemIcannotnowdiscuss.Ispeakofitonlybecausethethoughtwhich,whilewritingthisbook,hascomewithinexpressiblecheertome,mayalsobeofcheertosomewhoreadit;for,whateverbeitsfate,itwill

bereadbysomewhointheirheartofheartshavetakenthecrossofanewcrusade.Thisthoughtwillcometothemwithoutmysuggestion;butwearesurerthatweseeastarwhenweknowthatothersalsoseeit.

ThetruththatIhavetriedtomakeclearwillnotfindeasyacceptance.Ifthatcouldbe,itwouldhavebeenacceptedlongago.Ifthatcouldbe,itwouldneverhavebeenobscured.Butitwillfindfriends—thosewhowilltoilforit;sufferforit;ifneedbe,dieforit.ThisisthepowerofTruth.

Willitatlengthprevail?Ultimately,yes.Butinourowntimes,orintimesofwhichanymemoryofusremains,whoshallsay?

Forthemanwho,seeingthewantandmisery,theignoranceandbrutishnesscausedbyunjustsocialinstitutions,setshimself,insofarashehasstrength,torightthem,thereisdisappointmentandbitterness.Soithasbeenofoldtime.Soisitevennow.Butthebitterestthought—anditsometimescomestothebestandbravest—isthatofthehopelessnessoftheeffort,thefutilityofthesacrifice.Tohowfewofthosewhosowtheseedisitgiventoseeitgrow,orevenwithcertaintytoknowthatitwillgrow.

Letusnotdisguiseit.OverandoveragainhasthestandardofTruthandJusticebeenraisedinthisworld.Overandoveragainhasitbeentrampleddown—oftentimesinblood.IftheyareweakforcesthatareopposedtoTruth,howshouldErrorsolongprevail?IfJusticehasbuttoraiseherheadtohaveInjusticefleebeforeher,howshouldthewailoftheoppressedsolonggoup?

ButforthosewhoseeTruthandwouldfollowher;forthosewhorecognizeJusticeandwouldstandforher,successisnottheonlything.Success!Why,Falsehoodhasoftenthattogive;andInjusticeoftenhasthattogive.MustnotTruthandJusticehavesomethingtogivethatistheirownbyproperright—theirsinessence,andnotbyaccident?

Thattheyhave,andthathereandnow,everyonewhohasfelttheirexaltationknows.Butsometimesthecloudssweepdown.Itissad,sadreading,thelivesofthemenwhowouldhavedonesomethingfortheirfellows.ToSocratestheygavethehemlock;Gracchustheykilledwithsticksandstones;andOne,greatestandpurestofall,theycrucified.Theseseembuttypes.To-dayRussianprisonsarefull,andinlongprocessions,menandwomen,who,butforhigh-mindedpatriotism,mighthavelivedineaseandluxury,moveinchainstowardsthedeath-in-lifeofSiberia.Andinpenuryandwant,inneglectandcontempt,destituteevenofthesympathythatwouldhavebeensosweet,howmanyineverycountryhaveclosedtheireyes?Thiswesee.

Butdoweseeitall?

InwritingIhavepickedupanewspaper.Initisashortaccount,evidentlytranslatedfromasemi-officialreport,oftheexecutionofthreeNihilistsatKieff—thePrussiansubjectBrandtner,theunknownmancallinghimselfAntonoff,andthenoblemanOssinsky.Atthefootofthegallowstheywerepermittedtokissoneanother.“Thenthehangmancuttherope,thesurgeonspronouncedthevictimsdead,thebodieswereburiedatthefootofthescaffold,andtheNihilistsweregivenuptoeternaloblivion.”Thussaystheaccount.Idonotbelieveit.No;nottooblivion!

Ihaveinthisinquiryfollowedthecourseofmyownthought.When,inmind,IsetoutonitIhadnotheorytosupport,noconclusionstoprove.Only,whenIfirstrealizedthesqualidmiseryofagreatcity,itappalledandtormentedme,andwouldnotletmerest,forthinkingofwhatcauseditandhowitcouldbecured.

ButoutofthisinquiryhascometomesomethingIdidnotthinktofind,andafaiththatwasdeadrevives.

Theyearningforafurtherlifeisnaturalanddeep.Itgrowswithintellectualgrowth,andperhapsnonereallyfeelitmorethanthosewho

havebeguntoseehowgreatistheuniverseandhowinfinitearethevistaswhicheveryadvanceinknowledgeopensbeforeus—vistaswhichwouldrequirenothingshortofeternitytoexplore.Butinthementalatmosphereofourtimes,tothegreatmajorityofmenonwhommerecreedshavelosttheirhold,itseemsimpossibletolookonthisyearningsaveasavainandchildishhope,arisingfromman’segotism,andforwhichthereisnottheslightestgroundorwarrant,butwhich,onthecontrary,seemsinconsistentwithpositiveknowledge.

Now,whenwecometoanalyzeandtraceuptheideasthatthusdestroythehopeofafuturelife,weshallfindthem,Ithink,tohavetheirsource,notinanyrevelationsofphysicalscience,butincertainteachingsofpoliticalandsocialsciencewhichhavedeeplypermeatedthoughtinalldirections.Theyhavetheirrootinthedoctrines,thatthereisatendencytotheproductionofmorehumanbeingsthancanbeprovidedfor;thatviceandmiseryaretheresultofnaturallaws,andthemeansbywhichadvancegoeson;andthathumanprogressisbyaslowracedevelopment.Thesedoctrines,whichhavebeengenerallyacceptedasapprovedtruth,dowhat,exceptasscientificinterpretationshavebeencoloredbythem,theextensionsofphysicalsciencedonotdo—theyreducetheindividualtoinsignificance;theydestroytheideathattherecanbeintheorderingoftheuniverseanyregardforhisexistence,oranyrecognitionofwhatwecallmoralqualities.

Itisdifficulttoreconciletheideaofhumanimmortalitywiththeideathatnaturewastesmenbyconstantlybringingthemintobeingwherethereisnoroomforthem.ItisimpossibletoreconciletheideaofanintelligentandbeneficentCreatorwiththebeliefthatthewretchednessanddegradationwhicharethelotofsuchalargeproportionofhumankindresultfromhisenactments;whiletheideathatmanmentallyandphysicallyistheresultofslowmodificationsperpetuatedbyheredity,irresistiblysuggeststheideathatitistheracelife,nottheindividuallife,whichistheobjectofhumanexistence.Thushasvanishedwithmanyofus,andisstillvanishingwithmoreofus,thatbeliefwhichinthebattles

andillsoflifeaffordsthestrongestsupportanddeepestconsolation.

Now,intheinquirythroughwhichwehavepassed,wehavemetthesedoctrinesandseentheirfallacy.Wehaveseenthatpopulationdoesnottendtooutrunsubsistence;wehaveseenthatthewasteofhumanpowersandtheprodigalityofhumansufferingdonotspringfromnaturallaws,butfromtheignoranceandselfishnessofmeninrefusingtoconformtonaturallaws.Wehaveseenthathumanprogressisnotbyalteringthenatureofmen;butthat,onthecontrary,thenatureofmenseems,generallyspeaking,alwaysthesame.

Thusthenightmarewhichisbanishingfromthemodemworldthebeliefinafuturelifeisdestroyed.Notthatalldifficultiesareremoved—forturnwhichwaywemay,wecometowhatwecannotcomprehend;butthatdifficultiesareremovedwhichseemconclusiveandinsuperable.And,thus,hopespringsup.

Butthisisnotall.

PoliticalEconomyhasbeencalledthedismalscience,andascurrentlytaught,ishopelessanddespairing.Butthis,aswehaveseen,issolelybecauseshehasbeendegradedandshackled;hertruthsdislocated;herharmoniesignored;thewordshewoulduttergaggedinhermouth,andherprotestagainstwrongturnedintoanindorsementofinjustice.Freed,asIhavetriedtofreeher—inherownpropersymmetry,PoliticalEconomyisradiantwithhope.

Forproperlyunderstood,thelawswhichgoverntheproductionanddistributionofwealthshowthatthewantandinjusticeofthepresentsocialstatearenotnecessary;butthat,onthecontrary,asocialstateispossibleinwhichpovertywouldbeunknown,andallthebetterqualitiesandhigherpowersofhumannaturewouldhaveopportunityforfulldevelopment.

And,furtherthanthis,whenweseethatsocialdevelopmentisgovernedneitherbyaSpecialProvidencenorbyamercilessfate,butbylaw,atonceunchangeableandbeneficent;whenweseethathumanwillisthegreatfactor,andthattakingmenintheaggregate,theirconditionisastheymakeit;whenweseethateconomiclawandmorallawareessentiallyone,andthatthetruthwhichtheintellectgraspsaftertoilsomeeffortisbutthatwhichthemoralsensereachesbyaquickintuition,afloodoflightbreaksinupontheproblemofindividuallife.Thesecountlessmillionslikeourselves,whoonthisearthofourshavepassedandstillarepassing,withtheirjoysandsorrows,theirtoilandtheirstriving,theiraspirationsandtheirfears,theirstrongperceptionsofthingsdeeperthansense,theircommonfeelingswhichformthebasisevenofthemostdivergentcreeds—theirlittlelivesdonotseemsomuchlikemeaninglesswaste.

ThegreatfactwhichScienceinallherbranchesshowsistheuniversalityoflaw.Whereverhecantraceit,whetherinthefallofanappleorintherevolutionofbinarysuns,theastronomerseestheworkingofthesamelaw,whichoperatesintheminutestdivisionsinwhichwemaydistinguishspace,asitdoesintheimmeasurabledistanceswithwhichhissciencedeals.Outofthatwhichliesbeyondhistelescopecomesamovingbodyandagainitdisappears.Sofarashecantraceitscoursethelawisignored.Doeshesaythatthisisanexception?Onthecontrary,hesaysthatthisismerelyapartofitsorbitthathehasseen;thatbeyondthereachofhistelescopethelawholdsgood.Hemakeshiscalculations,andaftercenturiestheyareproved.

Now,ifwetraceoutthelawswhichgovernhumanlifeinsociety,wefindthatinthelargestasinthesmallestcommunity,theyarethesame.Wefindthatwhatseematfirstsightlikedivergencesandexceptionsarebutmanifestationsofthesameprinciples.Andwefindthateverywherewecantraceit,thesociallawrunsintoandconformswiththemorallaw;thatinthelifeofacommunity,justiceinfalliblybringsitsrewardandinjusticeitspunishment.Butthiswecannotseeinindividuallife.Ifwe

lookmerelyatindividuallifewecannotseethatthelawsoftheuniversehavetheslightestrelationtogoodorbad,torightorwrong,tojustorunjust.Shallwethensaythatthelawwhichismanifestinsociallifeisnottrueofindividuallife?Itisnotscientifictosayso.Wewouldnotsaysoinreferencetoanythingelse.Shallwenotrathersaythissimplyprovesthatwedonotseethewholeofindividuallife?

ThelawswhichPoliticalEconomydiscovers,likethefactsandrelationsofphysicalnature,harmonizewithwhatseemstobethelawofmentaldevelopment—notanecessaryandinvoluntaryprogress,butaprogressinwhichthehumanwillisaninitiatoryforce.Butinlife,aswearecognizantofit,mentaldevelopmentcangobutalittleway.Themindhardlybeginstoawakeerethebodilypowersdecline—itbutbecomesdimlyconsciousofthevastfieldsbeforeit,butbeginstolearnanduseitsstrength,torecognizerelationsandextenditssympathies,when,withthedeathofthebody,itpassesaway.Unlessthereissomethingmore,thereseemshereabreak,afailure.WhetheritbeaHumboldtoraHerschel,aMoseswholooksfromPisgah,aJoshuawholeadsthehost,oroneofthosesweetandpatientsoulswhoinnarrowcirclesliveradiantlives,thereseems,ifmindandcharacterheredevelopedcangonofurther,apurposelessnessinconsistentwithwhatwecanseeofthelinkedsequenceoftheuniverse.

Byafundamentallawofourminds—thelaw,infact,uponwhichPoliticalEconomyreliesinallherdeductions—wecannotconceiveofameanswithoutanend;acontrivancewithoutanobject.Now,toallnature,sofaraswecomeincontactwithitinthisworld,thesupportandemploymentoftheintelligencethatisinmanfurnishessuchanendandobject.Butunlessmanhimselfmayrisetoorbringforthsomethinghigher,hisexistenceisunintelligible.Sostrongisthismetaphysicalnecessitythatthosewhodenytotheindividualanythingmorethanthislifearecompelledtotransfertheideaofperfectibilitytotherace.Butaswehaveseen,andtheargumentcouldhavebeenmademuchmorecomplete,thereisnothingwhatevertoshowanyessentialrace

improvement.Humanprogressisnottheimprovementofhumannature.Theadvancesinwhichcivilizationconsistsarenotsecuredintheconstitutionofman,butintheconstitutionofsociety.Theyarethusnotfixedandpermanent,butmayatanytimebelost—nay,areconstantlytendingtobelost.Andfurtherthanthis,ifhumanlifedoesnotcontinuebeyondwhatweseeofithere,thenweareconfronted,withregardtotherace,withthesamedifficultyaswiththeindividual!Foritisascertainthattheracemustdieasitisthattheindividualmustdie.Weknowthattherehavebeengeologicconditionsunderwhichhumanlifewasimpossibleonthisearth.Weknowthattheymustreturnagain.Evennow,astheearthcirclesonherappointedorbit,thenorthernicecapslowlythickens,andthetimegraduallyapproaches,whenitsglacierswillflowagain,andaustralseas,sweepingnorthward,burytheseatsofpresentcivilizationunderoceanwastes,asitmaybetheynowburywhatwasonceashighacivilizationasourown.Andbeyondtheseperiods,sciencediscernsadeadearth,anexhaustedsun—atimewhen,clashingtogether,thesolarsystemshallresolveitselfintoagaseousform,againtobeginimmeasurablemutations.

Whatthenisthemeaningoflife—oflifeabsolutelyandinevitablyboundedbydeath?Tomeitseemsintelligibleonlyastheavenueandvestibuletoanotherlife.Anditsfactsseemexplainableonlyuponatheorywhichcannotbeexpressedbutinmythandsymbol,andwhich,everywhereandatalltimes,themythsandsymbolsinwhichmenhavetriedtoportraytheirdeepestperceptionsdoinsomeformexpress.

Thescripturesofthemenwhohavebeenandgone—theBibles,theZendAvestas,theVedas,theDhammapadas,andtheKorans;theesotericdoctrinesofoldphilosophies,theinnermeaningofgrotesquereligions,thedogmaticconstitutionsofEcumenicalCouncils,thepreachingsofFoxes,andWesleys,andSavonarolas,thetraditionsofredIndians,andbeliefsofblacksavages,haveaheartandcoreinwhichtheyagree—asomethingwhichseemslikethevariouslydistortedapprehensionsofaprimarytruth.Andoutofthechainofthoughtwehavebeenfollowing

thereseemsvaguelytoriseaglimpseofwhattheyvaguelysaw—ashadowygleamofultimaterelations,theendeavortoexpresswhichinevitablyfallsintotypeandallegory.Agardeninwhicharesetthetreesofgoodandevil.AvineyardinwhichthereistheMaster’sworktodo.Apassage—fromlifebehindtolifebeyond.Atrialandastruggle,ofwhichwecannotseetheend.

Lookaroundto-day.

Lo!here,now,inourcivilizedsociety,theoldallegoriesyethaveameaning,theoldmythsarestilltrue.IntotheValleyoftheShadowofDeathyetoftenleadsthepathofduty,throughthestreetsofVanityFairwalkChristianandFaithful,andonGreatheart’sarmorringtheclangingblows.OrmuzdstillfightswithAhriman—thePrinceofLightwiththePowersofDarkness.Hewhowillbear,tohimtheclarionsofthebattlecall.

Howtheycall,andcall,andcall,tilltheheartswellsthathearsthem!Strongsoulandhighendeavor,theworldneedsthemnow.Beautystillliesimprisoned,andironwheelsgooverthegoodandtrueandbeautifulthatmightspringfromhumanlives.

AndtheywhofightwithOrmuzd,thoughtheymaynotknoweachother—somewhere,sometime,willthemusterrollbecalled.

ThoughTruthandRightseemoftenoverborne,wemaynotseeitall.Howcanweseeitall?Allthatispassing,evenhere,wecannottell.Thevibrationsofmatterwhichgivethesensationsoflightandcolorbecometousindistinguishablewhentheypassacertainpoint.Itisonlywithinalikerangethatwehavecognizanceofsounds.Evenanimalshavesenseswhichwehavenot.And,here?Comparedwiththesolarsystemourearthisbutanindistinguishablespeck;andthesolarsystemitselfshrivelsintonothingnesswhengaugedwiththestardepths.Shallwesaythatwhatpassesfromoursightpassesintooblivion?No;notintooblivion.Far,far

beyondourkentheeternallawsmustholdtheirsway.

Thehopethatrisesistheheartofallreligions!Thepoetshavesungit,theseershavetoldit,andinitsdeepestpulsestheheartofmanthrobsresponsivetoitstruth.This,thatPlutarchsaid,iswhatinalltimesandinalltongueshasbeensaidbythepureheartedandstrongsighted,who,standingasitwere,onthemountaintopsofthoughtandlookingovertheshadowyocean,havebeheldtheloomofland:

“Men’ssouls,encompassedherewithbodiesandpassions,havenocommunicationwithGod,exceptwhattheycanreachtoinconceptiononly,bymeansofphilosophy,asbyakindofanobscuredream.Butwhentheyareloosedfromthebody,andremovedintotheunseen,invisible,impassable,andpureregion,thisGodisthentheirleaderandking;theythere,asitwere,hangingonhimwholly,andbeholdingwithoutwearinessandpassionatelyaffectingthatbeautywhichcannotbeexpressedorutteredbymen.”

Letusnotdeludeourchildren.IffornootherreasonthanforthatwhichPlatogives,thatwhentheycometodiscardthatwhichwetoldthemaspiousfabletheywillalsodiscardthatwhichwetoldthemastruth.Thevirtueswhichrelatetoselfdogenerallybringtheirreward.Eitheramerchantorathiefwillbemoresuccessfulifhebesober,prudent,andfaithfultohispromises;butastothevirtueswhichdonotrelatetoself—

“Itseemsastoryfromtheworldofspirits,Whenanyoneobtainsthatwhichhemerits,Oranymeritsthatwhichheobtains.”