Equality & Looking Backward
Page 34
Chapter XIII.
Private capital stolen from the social fund
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"I observe," pursued the doctor, "that Edith is getting very impatient with these dry disquisitions, and thinks it high time we passed from wealth in the abstract to wealth in the concrete, as illustrated by the contents of your safe. I will delay the company only while I say a very few words more; but really this question of the restoration of your million, raised half in jest as it was, so vitally touches the central and fundamental principle of our social order that I want to give you at least an outline idea of the modern ethics of wealth distribution.
"The essential difference between the new and the old point of view you fully possess by this time. The old ethics conceived of the question of what a man might rightfully possess as one which began and ended with the relation of individuals to things. Things have no rights as against moral beings, and there was no reason, therefore, in the nature of the case as thus stated, why individuals should not acquire an unlimited ownership of things so far as their abilities permitted. But this view absolutely ignored the social consequences which result from an unequal distribution of material things in a world where everybody absolutely depends for life and all its uses on their share of those things. That is to say, the old so-called ethics of property absolutely overlooked the whole ethical side of the subject--namely, its bearing on human relations. It is precisely this consideration which furnishes the whole basis of the modern ethics of property. All human beings are equal in rights and dignity, and only such a system of wealth distribution can therefore be defensible as respects and secures those equalities. But while this is the principle which you will hear most generally stated as the moral ground of our economic equality, there is another quite sufficient and wholly different ground on which, even if the rights of life and liberty were not involved, we should yet maintain that equal sharing of the total product of industry was the only just plan, and that any other was robbery.
"The main factor in the production of wealth among civilized men is the social organism, the machinery of associated labor and exchange by which hundreds of millions of individuals provide the demand for one another's product and mutually complement one another's labors, thereby making the productive and distributive systems of a nation and of the world one great machine. This was true even under private capitalism, despite the prodigious waste and friction of its methods; but of course it is a far more important truth now when the machinery of co-operation runs with absolute smoothness and every ounce of energy is utilized to the utmost effect. The element in the total industrial product which is due to the social organism is represented by the difference between the value of what one man produces as a worker in connection with the social organization and what he could produce in a condition of isolation. Working in concert with his fellows by aid of the social organism, he and they produce enough to support all in the highest luxury and refinement. Toiling in isolation, human experience has proved that he would be fortunate if he could at the utmost produce enough to keep himself alive. It is estimated, I believe, that the average daily product of a worker in America to-day is some fifty dollars. The product of the same man working in isolation would probably be highly estimated on the same basis of calculation if put at a quarter of a dollar. Now tell me, Julian, to whom belongs the social organism, this vast machinery of human association, which enhances some two hundredfold the product of every one's labor?"
"Manifestly," I replied, "it can belong to no one in particular, but to nothing less than society collectively. Society collectively can be the only heir to the social inheritance of intellect and discovery, and it is society collectively which furnishes the continuous daily concourse by which alone that inheritance is made effective."
"Exactly so. The social organism, with all that it is and all it makes possible, is the indivisible inheritance of all in common. To whom, then, properly belongs that two hundredfold enhancement of the value of every one's labor which is owing to the social organism?"
"Manifestly to society collectively--to the general fund."
"Previous to the great Revolution," pursued the doctor. "Although there seems to have been a vague idea of some such social fund as this, which belonged to society collectively, there was no clear conception of its vastness, and no custodian of it, or possible provision to see that it was collected and applied for the common use. A public organization of industry, a nationalized economic system, was necessary before the social fund could be properly protected and administered. Until then it must needs be the subject of universal plunder and embezzlement. The social machinery was seized upon by adventurers and made a means of enriching themselves by collecting tribute from the people to whom it belonged and whom it should have enriched. It would be one way of describing the effect of the Revolution to say that it was only the taking possession by the people collectively of the social machinery which had always belonged to them, thenceforth to be conducted as a public plant, the returns of which were to go to the owners as the equal proprietors and no longer to buccaneers.
"You will readily see," the doctor went on, "how this analysis of the product of industry must needs tend to minimize the importance of the personal equation of performance as between individual workers. If the modern man, by aid of the social machinery, can produce fifty dollars' worth of product where he could produce not over a quarter of a dollar's worth without society, then forty-nine dollars and three quarters out of every fifty dollars must be credited to the social fund to be equally distributed. The industrial efficiency of two men working without society might have differed as two to one--that is, while one man was able to produce a full quarter dollar's worth of work a day, the other could produce only twelve and a half cents' worth. This was a very great difference under those circumstances, but twelve and a half cents is so slight a proportion of fifty dollars as not to be worth mentioning. That is to say, the difference in individual endowments between the two men would remain the same, but that difference would be reduced to relative unimportance by the prodigious equal addition made to the product of both alike by the social organism. Or again, before gunpowder was invented one man might easily be worth two as a warrior. The difference between the men as individuals remained what it was; yet the overwhelming factor added to the power of both alike by the gun practically equalized them as fighters. Speaking of guns, take a still better illustration--the relation of the individual soldiers in a square of infantry to the formation. There might be large differences in the fighting power of the individual soldiers singly outside the ranks. Once in the ranks, however, the formation added to the fighting efficiency of every soldier equally an element so overwhelming as to dwarf the difference between the individual efficiency of different men. Say, for instance, that the formation added ten to the fighting force of every member, then the man who outside the ranks was as two to one in power compared with his comrade would, when they both stood in the ranks, compare with him only as twelve to eleven--an inconsiderable difference.
"I need scarcely point out to you, Julian, the bearing of the principle of the social fund on economic equality when the industrial system was nationalized. It made it obvious that even if it were possible to figure out in a satisfactory manner the difference in the industrial products which in an accounting with the social fund could be respectively credited to differences in individual performance, the result would not be worth the trouble. Even the worker of special ability, who might hope to gain most by it, could not hope to gain so much as he would lose in common with others by sacrificing the increased efficiency of the industrial machinery that would result from the sentiment of solidarity and public spirit among the workers arising from a feeling of complete unity of interest."
"Doctor," I exclaimed, "I like that idea of the social fund immensely! It makes me understand, among other things, the completeness with which you seem to have outgrown the wages notion, which in one form or other was fundamental to all
economic thought in my day. It is because you are accustomed to regarding the social capital rather than your day-to-day specific exertions as the main source of your wealth. It is, in a word, the difference between the attitude of the capitalist and the proletarian."
"Even so," said the doctor. "The Revolution made us all capitalists, and the idea of the dividend has driven out that of the stipend. We take wages only in honor. From our point of view as to the collective ownership of the economic machinery of the social system, and the absolute claim of society collectively to its product, there is something amusing in the laborious disputations by which your contemporaries used to try to settle just how much or little wages or compensation for services this or that individual or group was entitled to. Why, dear me, Julian, if the cleverest worker were limited to his own product, strictly separated and distinguished from the elements by which the use of the social machinery had multiplied it, he would fare no better than a half-starved savage. Everybody is entitled not only to his own product, but to vastly more--namely, to his share of the product of the social organism, in addition to his personal product, but he is entitled to this share not on the grab-as-grab-can plan of your day, by which some made themselves millionaires and others were left beggars, but on equal terms with all his fellow-capitalists."
"The idea of an unearned increment given to private properties by the social organism was talked of in my day," I said, "but only, as I remember, with reference to land values. There were reformers who held that society had the right to take in taxes all increase in value of land that resulted from social factors, such as increased population or public improvements, but they seemed to think the doctrine applicable to land only."
"Yes," said the doctor, "and it is rather odd that, having hold of the clew, they did not follow it up."
Chapter XIV.
We look over my collection of harnesses
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Wires for light and heat had been put into the vault, and it was as warm and bright and habitable a place as it had been a century before, when it was my sleeping chamber. Kneeling before the door of the safe, I at once addressed myself to manipulating the dial, my companions meanwhile leaning over me in attitudes of eager interest.
It had been one hundred years since I locked the safe the last time, and under ordinary circumstances that would have been long enough for me to forget the combination several times over, but it was as fresh in my mind as if I had devised it a fortnight before, that being, in fact, the entire length of the intervening period so far as my conscious life was concerned.
"You observe," I said, "that I turn this dial until the letter 'K' comes opposite the letter 'R.' Then I move this other dial till the number '9' comes opposite the same point. Now the safe is practically unlocked. All I have to do to open it is to turn this knob, which moves the bolts, and then swing the door open, as you see."
But they did not see just then, for the knob would not turn, the lock remaining fast. I knew that I had made no mistake about the combination. Some of the tumblers in the lock had failed to fall. I tried it over again several times and thumped the dial and the door, but it was of no use. The lock remained stubborn. One might have said that its memory was not as good as mine. It had forgotten the combination. A materialistic explanation somewhat more probable was that the oil in the lock had been hardened by time so as to offer a slight resistance. The lock could not have rusted, for the atmosphere of the room had been absolutely dry. Otherwise I should not have survived.
"I am sorry to disappoint you," I said, "but we shall have to send to the headquarters of the safe manufacturers for a locksmith. I used to know just where in Sudbury Street to go, but I suppose the safe business has moved since then."
"It has not merely moved," said the doctor, "it has disappeared; there are safes like this at the historical museum, but I never knew how they were opened until now. It is really very ingenious."
"And do you mean to say that there are actually no locksmiths to-day who could open this safe?"
"Any machinist can cut the steel like cardboard," replied the doctor; "but really I don't believe there is a man in the world who could pick the lock. We have, of course, simple locks to insure privacy and keep children out of mischief, but nothing calculated to offer serious resistance either to force or cunning. The craft of the locksmith is extinct."
At this Edith, who was impatient to see the safe opened, exclaimed that the twentieth century had nothing to boast of if it could not solve a puzzle which any clever burglar of the nineteenth century was equal to.
"From the point of view of an impatient young woman it may seem so," said the doctor. "But we must remember that lost arts often are monuments of human progress, indicating outgrown limitations and necessities, to which they ministered. It is because we have no more thieves that we have no more locksmiths. Poor Julian had to go to all this pains to protect the papers in that safe, because if he lost them he would be left a beggar, and, from being one of the masters of the many, would have become one of the servants of the few, and perhaps be tempted to turn burglar himself. No wonder locksmiths were in demand in those days. But now you see, even supposing any one in a community enjoying universal and equal wealth could wish to steal anything, there is nothing that he could steal with a view to selling it again. Our wealth consists in the guarantee of an equal share in the capital and income of the nation--a guarantee that is personal and can not be taken from us nor given away, being vested in each one at birth, and divested only by death. So you see the locksmith and safe-maker would be very useless persons."
As we talked, I had continued to work the dial in the hope that the obstinate tumbler might be coaxed to act, and presently a faint click rewarded my efforts and I swung the door open.
"Faugh!" exclaimed Edith at the musty gust of confined air which followed. "I am sorry for your people if that is a fair sample of what you had to breathe."
"It is probably about the only sample left, at any rate," observed the doctor.
"Dear me! what a ridiculous little box it turns out to be for such a pretentious outside!" exclaimed Edith's mother.
"Yes," said I. "The thick walls are to make the contents fireproof as well as burglar-proof--and, by the way, I should think you would need fireproof safes still."
"We have no fires, except in the old structures," replied the doctor. "Since building was undertaken by the people collectively, you see we could not afford to have them, for destruction of property means to the nation a dead loss, while under private capitalism the loss might be shuffled off on others in all sorts of ways. They could get insured, but the nation has to insure itself."
Opening the inner door of the safe, I took out several drawers full of securities of all sorts, and emptied them on the table in the room.
"Are these stuffy-looking papers what you used to call wealth?" said Edith, with evident disappointment.
"Not the papers in themselves," I said, "but what they represented."
"And what was that?" she asked.
"The ownership of land, houses, mills, ships, railroads, and all manner of other things," I replied, and went on as best I could to explain to her mother and herself about rents, profits, interest, dividends, etc. But it was evident, from the blank expression of their countenances, that I was not making much headway.
Presently the doctor looked up from the papers which he was devouring with the zeal of an antiquarian, and chuckled.
"I am afraid, Julian, you are on the wrong tack. You see economic science in your day was a science of things; in our day it is a science of human beings. We have nothing at all answering to your rent, interest, profits, or other financial devices, and the terms expressing them have no meaning now except to students. If you wish Edith and her mother to understand you, you must translate these money terms into terms of men and women and children, and the plain facts of their relations as affected by your system. Shall you consider it impertinent if I try to make the matter a little cleare
r to them?"
"I shall be much obliged to you," I said; "and perhaps you will at the same time make it clearer to me."
"I think," said the doctor, "that we shall all understand the nature and value of these documents much better if, instead of speaking of them as titles of ownership in farms, factories, mines, railroads, etc., we state plainly that they were evidences that their possessors were the masters of various groups of men, women, and children in different parts of the country. Of course, as Julian says, the documents nominally state his title to things only, and say nothing about men and women. But it is the men and women who went with the lands, the machines, and various other things, and were bound to them by their bodily necessities, which gave all the value to the possession of the things.
"But for the implication that there were men who, because they must have the use of the land, would submit to labor for the owner of it in return for permission to occupy it, these deeds and mortgages would have been of no value. So of these factory shares. They speak only of water power and looms, but they would be valueless but for the thousands of human workers bound to the machines by bodily necessities as fixedly as if they were chained there. So of these coal-mine shares. But for the multitude of wretched beings condemned by want to labor in living graves, of what value would have been these shares which yet make no mention of them? And see again how significant is the fact that it was deemed needless to make mention of and to enumerate by name these serfs of the field, of the loom, of the mine! Under systems of chattel slavery, such as had formerly prevailed, it was necessary to name and identify each chattel, that he might be recovered in case of escape, and an account made of the loss in case of death. But there was no danger of loss by the escape or the death of the serfs transferred by these documents. They would not run away, for there was nothing better to run to or any escape from the world-wide economic system which enthralled them; and if they died, that involved no loss to their owners, for there were always plenty more to take their places. Decidedly, it would have been a waste of paper to enumerate them.