"Precisely so. The only motive of the capitalist in introducing labor-saving machinery was to retain as profit a larger share of the product than before by cutting down the share of labor--that is to say, labor-saving machinery which should have banished poverty from the world became the means under the profit system of impoverishing the masses more rapidly than ever."
"But did not the competition among the capitalists compel them to sacrifice a part of these increased profits in reductions of prices in order to get rid of their goods?"
"Undoubtedly; but such reductions in price would not increase the consuming power of the people except when taken out of profits, and, as John explained to us this morning, when capitalists were forced by competition to reduce their prices they saved their profits as long as possible by making up for the reductions in price by debasing the quality of the goods or cutting down wages until the public and the wage-earners could be cheated and squeezed no longer. Then only did they begin to sacrifice profits, and it was then too late for the impoverished consumers to respond by increasing consumption. It was always, as John told us, in the countries where the people were poorest that the prices were lowest, but without benefit to the people."
THE AMERICAN FARMER AND MACHINERY.
"And now," said the teacher, "I want to ask you something about the effect of labor-saving inventions upon a class of so-called capitalists who made up the greater half of the American people--I mean the farmers. In so far as they owned their farms and tools, however encumbered by debts and mortgages, they were technically capitalists, although themselves quite as pitiable victims of the capitalists as were the proletarian artisans. The agricultural labor-saving inventions of the nineteenth century in America were something simply marvelous, enabling, as we have been told, one man to do the work of fifteen a century before. Nevertheless, the American farmer was going straight to the dogs all the while these inventions were being introduced. Now, how do you account for that? Why did not the farmer, as a sort of capitalist, pile up his profits on labor-saving machinery like the other capitalists?"
"As I have said," replied the girl, "the profits made by labor-saving machinery resulted from the increased productiveness of the labor employed, thus enabling the capitalist either to turn out a greater product with the same labor cost or an equal product with a less labor cost, the workers supplanted by the machine being discharged. The amount of profits made was therefore dependent on the scale of the business carried on--that is, the number of workers employed and the consequent figure which labor cost made in the business. When farming was carried on upon a very large scale, as were the so-called bonanza farms in the United States of that period, consisting of twenty to thirty thousand acres of land, the capitalists conducting them did for a time make great profits, which were directly owing to the labor-saving agricultural machines, and would have been impossible without them. These machines enabled them to put a greatly increased product on the market with small increase of labor cost or else the same product at a great decrease of labor cost. But the mass of the American farmers operated on a small scale only and employed very little labor, doing largely their own work. They could therefore make little profit, if any, out of labor-saving machinery by discharging employees. The only way they could utilize it was not by cutting down the expense of their output but by increasing the amount of the output through the increased efficiency of their own labor. But seeing that there had been no increase meanwhile in the purchasing power of the community at large, there was no more money demand for their products than before, and consequently if the general body of farmers through labor-saving machinery increased their output, they could dispose of the greater aggregate only at a reduced price, so that in the end they would get no more for the greater output than for the less. Indeed, they would not get so much, for the effect of even a small surplus when held by weak capitalists who could not keep it back, but must press for sale, had an effect to reduce the market price quite out of proportion to the amount of the surplus. In the United States the mass of these small farmers was so great and their pressure to sell so desperate that in the latter part of the century they destroyed the market not only for themselves but finally even for the great capitalists who conducted the great farms."
"The conclusion is, then, Helen," said the teacher, "that the net effect of labor-saving machinery upon the mass of small farmers in the United States was ruinous."
"Undoubtedly," replied the girl. "This is a case in which the historical facts absolutely confirm the rational theory. Thanks to the profit system, inventions which multiplied the productive power of the farmer fifteenfold made a bankrupt of him, and so long as the profit system was retained there was no help for him."
"Were farmers the only class of small capitalists who were injured rather than helped by labor-saving machinery?"
"The rule was the same for all small capitalists whatever business they were engaged in. Its basis, as I have said, was the fact that the advantage to be gained by the capitalists from introducing labor-saving machinery was in proportion to the amount of labor which the machinery enabled them to dispense with--that is to say, was dependent upon the scale of their business. If the scale of the capitalist's operations was so small that he could not make a large saving in reduced labor cost by introducing machinery, then the introduction of such machinery put him at a crushing disadvantage as compared with larger capitalists. Labor-saving machinery was in this way one of the most potent of the influences which toward the close of the nineteenth century made it impossible for the small capitalists in any field to compete with the great ones, and helped to concentrate the economic dominion of the world in few and ever fewer hands."
"Suppose, Helen, that the Revolution had not come, that labor-saving machinery had continued to be invented as fast as ever, and that the consolidation of the great capitalists' interests, already foreshadowed, had been completed, so that the waste of profits in competition among themselves had ceased, what would have been the result?"
"In that case," replied the girl, "all the wealth that had been wasted in commercial rivalry would have been expended in luxury in addition to what had been formerly so expended. The new machinery year by year would have gone on making it possible for a smaller and ever smaller fraction of the population to produce all the necessaries for the support of mankind, and the rest of the world, including the great mass of the workers, would have found employment in unproductive labor to provide the materials of luxury for the rich or in personal services to them. The world would thus come to be divided into three classes: a master caste, very limited in numbers; a vast body of unproductive workers employed in ministering to the luxury and pomp of the master caste; and a small body of strictly productive workers, which, owing to the perfection of machinery, would be able to provide for the needs of all. It is needless to say that all save the masters would be at the minimum point as to means of subsistence. Decaying empires in ancient times have often presented such spectacles of imperial and aristocratic splendor, to the supply and maintenance of which the labor of starving nations was devoted. But no such spectacle ever presented in the past would have been comparable to that which the twentieth century would have witnessed if the great Revolution had permitted private capitalism to complete its evolution. In former ages the great mass of the population has been necessarily employed in productive labor to supply the needs of the world, so that the portion of the working force available for the service of the pomp and pleasures of the masters as unproductive laborers has always been relatively small. But in the plutocratic empire we are imagining, the genius of invention, through labor-saving machinery, would have enabled the masters to devote a greater proportion of the subject population to the direct service of their state and luxury than had been possible under any of the historic despotisms. The abhorrent spectacles of men enthroned as gods above abject and worshiping masses, which Assyria, Egypt, Persia, and Rome exhibited in their day, would have been eclipsed."
"Tha
t will do, Helen," said the teacher. "With your testimony we will wind up our review of the economic system of private capitalism which the great Revolution abolished forever. There are of course a multitude of other aspects and branches of the subject which we might take up, but the study would be as unprofitable as depressing. We have, I think, covered the essential points. If you understand why and how profits, rent, and interest operated to limit the consuming power of most of the community to a fractional part of its productive power, thereby in turn correspondingly crippling the latter, you have the open secret of the poverty of the world before the Revolution, and of the impossibility of any important or lasting improvement from any source whatever in the economic circumstances of mankind, until and unless private capitalism, of which the profit system with rent and interest were necessary and inseparable parts, should be put an end to."
Chapter XXIX.
I receive an ovation
Table of Contents
"And now," the teacher went on, glancing at the gallery where the doctor and I had been sitting unseen, "I have a great surprise for you. Among those who have listened to your recitation to-day, both in the forenoon and afternoon, has been a certain personage whose identity you ought to be able to infer when I say that, of all persons now on earth, he is absolutely the one best able, and the only one fully able, to judge how accurate your portrayal of nineteenth-century conditions has been. Lest the knowledge should disturb your equanimity, I have refrained from telling you, until the present moment, that we have present with us this afternoon a no less distinguished visitor than Julian West, and that with great kindness he has consented to permit me to present you to him."
I had assented, rather reluctantly, to the teacher's request, not being desirous of exposing myself unnecessarily to curious staring. But I had yet to make the acquaintance of twentieth-century boys and girls. When they came around me it was easy to see in the wistful eyes of the girls and the moved faces of the boys how deeply their imaginations were stirred by the suggestions of my presence among them, and how far their sentiment was from one of common or frivolous curiosity. The interest they showed in me was so wholly and delicately sympathetic that it could not have offended the most sensitive temperament.
This had indeed been the attitude of all the persons of mature years whom I had met, but I had scarcely expected the same considerateness from school children. I had not, it seemed, sufficiently allowed for the influence upon manners of the atmosphere of refinement which surrounds the child of to-day from the cradle. These young people had never seen coarseness, rudeness, or brusqueness on the part of any one. Their confidence had never been abused, their sympathy wounded, or their suspicion excited. Having never imagined such a thing as a person socially superior or inferior to themselves, they had never learned but one sort of manners. Having never had any occasion to create a false or deceitful impression or to accomplish anything by indirection, it was natural that they should not know what affectation was.
Truly, it is these secondary consequences, these moral and social reactions of economic equality to create a noble atmosphere of human intercourse, that, after all, have been the greatest contribution which the principle has made to human happiness.
At once I found myself talking and jesting with the young people as easily as if I had always known them, and what with their interest in what I told them of the old-time schools, and my delight in their naive comments, an hour slipped away unnoticed. Youth is always inspiring, and the atmosphere of these fresh, beautiful, ingenuous lives was like a wine bath.
Florence! Esther! Helen! Marion! Margaret! George! Robert! Harold! Paul!--Never shall I forget that group of star-eyed girls and splendid lads, in whom I first made acquaintance with the boys and girls of the twentieth century. Can it be that God sends sweeter souls to earth now that the world is so much fitter for them?
Chapter XXX.
What universal culture means
Table of Contents
It was one of those Indian summer afternoons when it seems sinful waste of opportunity to spend a needless hour within. Being in no sort of hurry, the doctor and I chartered a motor-carriage for two at the next station, and set forth in the general direction of home, indulging ourselves in as many deviations from the route as pleased our fancy. Presently, as we rolled noiselessly over the smooth streets, leaf-strewn from the bordering colonnades of trees, I began to exclaim about the precocity of school children who at the age of thirteen or fourteen were able to handle themes usually reserved in my day for the college and university. This, however, the doctor made light of.
"Political economy," he said, "from the time the world adopted the plan of equal sharing of labor and its results, became a science so simple that any child who knows the proper way to divide an apple with his little brothers has mastered the secret of it. Of course, to point out the fallacies of a false political economy is a very simple matter also, when one has only to compare it with the true one.
"As to intellectual precocity in general," pursued the doctor, "I do not think it is particularly noticeable in our children as compared with those of your day. We certainly make no effort to develop it. A bright school child of twelve in the nineteenth century would probably not compare badly as to acquirements with the average twelve-year-old in our schools. It would be as you compared them ten years later that the difference in the educational systems would show its effect. At twenty-one or twenty-two the average youth would probably in your day have been little more advanced in education than at fourteen, having probably left school for the factory or farm at about that age or a couple of years later unless perhaps he happened to be one of the children of the rich minority. The corresponding child under our system would have continued his or her education without break, and at twenty-one have acquired what you used to call a college education."
"The extension of the educational machinery necessary to provide the higher education for all must have been enormous," I said. "Our primary-school system provided the rudiments for nearly all children, but not one in twenty went as far as the grammar school, not one in a hundred as far as the high school, and not one in a thousand ever saw a college. The great universities of my day--Harvard, Yale, and the rest--must have become small cities in order to receive the students flocking to them."
"They would need to be very large cities certainly," replied the doctor, "if it were a question of their undertaking the higher education of our youth, for every year we graduate not the thousands or tens of thousands that made up your annual grist of college graduates, but millions. For that very reason--that is, the numbers to be dealt with--we can have no centers of the higher education any more than you had of the primary education. Every community has its university just as formerly its common schools, and has in it more students from the vicinage than one of your great universities could collect with its drag net from the ends of the earth."
"But does not the reputation of particular teachers attract students to special universities?"
"That is a matter easily provided for," replied the doctor. "The perfection of our telephone and electroscope systems makes it possible to enjoy at any distance the instruction of any teacher. One of much popularity lectures to a million pupils in a whisper, if he happens to be hoarse, much easier than one of your professors could talk to a class of fifty when in good voice."
"Really, doctor," said I, "there is no fact about your civilization that seems to open so many vistas of possibility and solve beforehand so many possible difficulties in the arrangement and operation of your social system as this universality of culture. I am bound to say that nothing that is rational seems impossible in the way of social adjustments when once you assume the existence of that condition. My own contemporaries fully recognized in theory, as you know, the importance of popular education to secure good government in a democracy; but our system, which barely at best taught the masses to spell, was a farce indeed compared with the popular education of to-day."
"Nec
essarily so," replied the doctor. "The basis of education is economic, requiring as it does the maintenance of the pupil without economic return during the educational period. If the education is to amount to anything, that period must cover the years of childhood and adolescence to the age of at least twenty. That involves a very large expenditure, which not one parent in a thousand was able to support in your day. The state might have assumed it, of course, but that would have amounted to the rich supporting the children of the poor, and naturally they would not hear to that, at least beyond the primary grades of education. And even if there had been no money question, the rich, if they hoped to retain their power, would have been crazy to provide for the masses destined to do their dirty work--a culture which would have made them social rebels. For these two reasons your economic system was incompatible with any popular education worthy of the name. On the other hand, the first effect of economic equality was to provide equal educational advantages for all and the best the community could afford. One of the most interesting chapters in the history of the Revolution is that which tells how at once after the new order was established the young men and women under twenty-one years of age who had been working in fields or factories, perhaps since childhood, left their work and poured back into the schools and colleges as fast as room could be made for them, so that they might as far as possible repair their early loss. All alike recognized, now that education had been made economically possible for all, that it was the greatest boon the new order had brought. It recorded also in the books that not only the youth, but the men and women, and even the elderly who had been without educational advantages, devoted all the leisure left from their industrial duties to making up, so far as possible, for their lack of earlier advantages, that they might not be too much ashamed in the presence of a rising generation to be composed altogether of college graduates.
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