"On the contrary," I replied, "I should think you had been reading aloud from a collection of newspapers of the period. All the political, social, and business facts and symptoms to which the writer has referred were matters of public discussion and common notoriety. If they did not impress me as they do now, it is simply because I imagine I never heard them grouped and marshaled with the purpose of bringing out their significance."
Once more the doctor asked Edith to bring him a book from the library.
Turning the pages until he had found the desired place, he said:
"Lest you should fancy that the force of Storiot"s statement of the economic situation in the United States during the last third of the nineteenth century owes anything to the rhetorical arrangement, I want to give you just a few hard, cold statistics as to the actual distribution of property during that period, showing the extent to which its ownership had been concentrated. Here is a volume made up of information on this subject based upon a.n.a.lyses of census reports, tax a.s.sessments, the files of probate courts, and other official doc.u.ments. I will give you three sets of calculations, each prepared by a separate authority and based upon a distinct line of investigation, and all agreeing with a closeness which, considering the magnitude of the calculation, is astounding, and leaves no room to doubt the substantial accuracy of the conclusions.
"From the first set of tables, which was prepared in 1893 by a census official from the returns of the United States census, we find it estimated that out of sixty-two billions of wealth in the country a group of millionaires and multimillionaires, representing three one-hundredths of one per cent of the population, owned twelve billions, or one fifth.
Thirty-three billions of the rest was owned by a little less than nine per cent of the American people, being the rich and well-to-do cla.s.s less than millionaires. That is, the millionaires, rich, and well-to-do, making altogether but nine per cent of the whole nation, owned forty-five billions of the total national valuation of sixty-two billions. The remaining ninety-one per cent of the whole nation, const.i.tuting the bulk of the people, were cla.s.sed as the poor, and divided among themselves the remaining seventeen million dollars.
"A second table, published in 1894 and based upon the surrogates" records of estates in the great State of New York, estimates that one per cent of the people, one one-hundredth of the nation, possessed over half, or fifty-five per cent, of its total wealth. It finds that a further fraction of the population, including the well-to-do, and amounting to eleven per cent, owned over thirty-two per cent of the total wealth, so that twelve per cent of the whole nation, including the very rich and the well-to-do, monopolized eighty-seven per cent of the total wealth of the country, leaving but thirteen per cent of that wealth to be shared among the remaining eighty-eight per cent of the nation. This eighty-eight per cent of the nation was subdivided into the poor and the very poor. The last, const.i.tuting fifty per cent out of the eighty-eight, or half the entire nation, had too little wealth to be estimated at all, apparently living a hand-to-mouth existence.
"The estimates of a third computator whom I shall quote, although taken from quite different data, agree remarkably with the others, representing as they do about the same period. These last estimates, which were published in 1889 and 1891, and like the others produced a strong impression, divide the nation into three cla.s.ses--the rich, the middle, and the working cla.s.s. The rich, being one and four tenths per cent of the population, are credited with seventy per cent of the total wealth.
The middle cla.s.s, representing nine and two tenths per cent of the population, is credited with twelve per cent of the total wealth, the rich and middle cla.s.ses, together, representing ten and six tenths per cent of the population, having therefore eighty-two per cent of the total wealth, leaving to the working cla.s.s, which const.i.tuted eighty-nine and four tenths of the nation, but eighteen per cent of the wealth, to share among them."
"Doctor," I exclaimed, "I knew things were pretty unequally divided in my day, but figures like these are overwhelming. You need not take the trouble to tell me anything further by way of explaining why the people revolted against private capitalism. These figures were enough to turn the very stones into revolutionists."
"I thought you would say so," replied the doctor. "And please remember also that these tremendous figures represent only the progress made toward the concentration of wealth mainly within the period of a single generation. Well might Americans say to themselves "If such things are done in the green tree, what shall be done in the dry?" If private capitalism, dealing with a community in which had previously existed a degree of economic equality never before known, could within a period of some thirty years make such a prodigious stride toward the complete expropriation of the rest of the nation for the enrichment of a cla.s.s, what was likely to be left to the people at the end of a century? What was to be left even to the next generation?"
CHAPTER x.x.xV.
WHY THE REVOLUTION WENT SLOW AT FIRST BUT FAST AT LAST.
"So much for the causes of the Revolution in America, both the general fundamental cause, consisting in the factor newly introduced into social evolution by the enlightenment of the ma.s.ses and irresistibly tending to equality, and the immediate local causes peculiar to America, which account for the Revolution having come at the particular time it did and for its taking the particular course it did. Now, briefly as to that course:
"The pinching of the economic shoe resulting from the concentration of wealth was naturally first felt by the cla.s.s with least reserves, the wage-earners, and the Revolution may be said to have begun with their revolt. In 1869 the first great labor organization in America was formed to resist the power of capital. Previous to the war the number of strikes that had taken place in the country could be counted on the fingers.
Before the sixties were out they were counted by hundreds, during the seventies by thousands, and during the eighties the labor reports enumerate nearly ten thousand, involving two or three million workers.
Many of these strikes were of continental scope, shaking the whole commercial fabric and causing general panics.
"Close after the revolt of the wage earners came that of the farmers--less turbulent in methods but more serious and abiding in results. This took the form of secret leagues and open political parties devoted to resisting what was called the money power. Already in the seventies these organizations threw State and national politics into confusion, and later became the nucleus of the revolutionary party.
"Your contemporaries of the thinking cla.s.ses can not be taxed with indifference to these signs and portents. The public discussion and literature of the time reflect the confusion and anxiety with which the unprecedented manifestations of popular discontent had affected all serious persons. The old-fashioned Fourth-of-July boastings had ceased to be heard in the land. All agreed that somehow republican forms of government had not fulfilled their promise as guarantees of the popular welfare, but were showing themselves impotent to prevent the recrudescence in the New World of all the Old World"s evils, especially those of cla.s.s and caste, which it had been supposed could never exist in the atmosphere of a republic. It was recognized on all sides that the old order was changing for the worse, and that the republic and all it had been thought to stand for was in danger. It was the universal cry that something must be done to check the ruinous tendency. Reform was the word in everybody"s mouth, and the rallying cry, whether in sincerity or pretense, of every party. But indeed, Julian, I need waste no time describing this state of affairs to you, for you were a witness of it till 1887."
"It was all quite as you describe it, the industrial and political warfare and turmoil, the general sense that the country was going wrong, and the universal cry for some sort of reform. But, as I said before, the agitation, while alarming enough, was too confused and purposeless to seem revolutionary. All agreed that something ailed the country, but no two agreed what it was or how to cure it."
"Just so," said the doctor. "Our historians divide the entire revolutionary epoch--from the close of the war, or the beginning of the seventies, to the establishment of the present order early in the twentieth century--into two periods, the incoherent and the rational. The first of these is the period of which we have been talking, and with which Storiot deals with in the paragraphs I have read--the period with which you were, for the most part, contemporary. As we have seen, and you know better than we can, it was a time of terror and tumult, of confused and purposeless agitation, and a Babel of contradictory clamor. The people were blindly kicking in the dark against the p.r.i.c.ks of capitalism, without any clear idea of what they were kicking against.
"The two great divisions of the toilers, the wage-earners and the farmers, were equally far from seeing clear and whole the nature of the situation and the forces of which they were the victims. The wage-earners" only idea was that by organizing the artisans and manual workers their wages could be forced up and maintained indefinitely. They seem to have had absolutely no more knowledge than children of the effect of the profit system always and inevitably to keep the consuming power of the community indefinitely below its producing power and thus to maintain a constant state of more or less aggravated glut in the goods and labor markets, and that nothing could possibly prevent the constant presence of these conditions so long as the profit system was tolerated, or their effect finally to reduce the wage-earner to the subsistence point or below as profits tended downward. Until the wage-earners saw this and no longer wasted their strength in hopeless or trivial strikes against individual capitalists which could not possibly affect the general result, and united to overthrow the profit system, the Revolution must wait, and the capitalists had no reason to disturb themselves.
"As for the farmers, as they were not wage-earners, they took no interest in the plans of the latter, which aimed merely to benefit the wage-earning cla.s.s, but devoted themselves to equally futile schemes for their cla.s.s, in which, for the same reason that they were merely cla.s.s remedies, the wage-earners took no interest. Their aim was to obtain aid from the Government to improve their condition as petty capitalists oppressed by the greater capitalists who controlled the traffic and markets of the country; as if any conceivable device, so long as private capitalism should be tolerated, would prevent its natural evolution, which was the crushing of the smaller capitalists by the larger.
"Their main idea seems to have been that their troubles as farmers were chiefly if not wholly to be accounted for by certain vicious acts of financial legislation, the effect of which they held had been to make money scarce and dear. What they demanded as the sufficient cure of the existing evils was the repeal of the vicious legislation and a larger issue of currency. This they believed would be especially beneficial to the farming cla.s.s by reducing the interest on their debts and raising the price of their product.
"Undoubtedly the currency and the coinage and the governmental financial system in general had been shamelessly abused by the capitalists to corner the wealth of the nation in their hands, but their misuse of this part of the economic machinery had been no worse than their manipulation of the other portions of the system. Their trickery with the currency had only helped them to monopolize the wealth of the people a little faster than they would have done it had they depended for their enrichment on what were called the legitimate operations of rent, interest, and profits. While a part of their general policy of economic subjugation of the people, the manipulation of the currency had not been essential to that policy, which would have succeeded just as certainly had it been left out. The capitalists were under no necessity to juggle with the coinage had they been content to make a little more leisurely process of devouring the lands and effects of the people. For that result no particular form of currency system was necessary, and no conceivable monetary system would have prevented it. Gold, silver, paper, dear money, cheap money, hard money, bad money, good money--every form of token from cowries to guineas--had all answered equally well in different times and countries for the designs of the capitalist, the details of the game being only slightly modified according to the conditions.
"To have convinced himself of the folly of ascribing the economic distress to which his cla.s.s as well as the people at large had been reduced, to an act of Congress relating to the currency, the American farmer need only have looked abroad to foreign lands, where he would have seen that the agricultural cla.s.s everywhere was plunged in a misery greater than his own, and that, too, without the slightest regard to the nature of the various monetary systems in use.
"Was it indeed a new or strange phenomenon in human affairs that the agriculturists were going to the wall, that the American farmer should seek to account for the fact by some new and peculiarly American policy?
On the contrary, this had been the fate of the agricultural cla.s.s in all ages, and what was now threatening the American tiller of the soil was nothing other than the doom which had befallen his kind in every previous generation and in every part of the world. Manifestly, then, he should seek the explanation not in any particular or local conjunction of circ.u.mstances, but in some general and always operative cause. This general cause, operative in all lands and times and among all races, he would presently see when he should interrogate history, was the irresistible tendency by which the capitalist cla.s.s in the evolution of any society through rent, interest, and profits absorbs to itself the whole wealth of the country, and thus reduces the ma.s.ses of the people to economic, social, and political subjection, the most abject cla.s.s of all being invariably the tillers of the soil. For a time the American population, including the farmers, had been enabled, thanks to the vast bounty of a virgin and empty continent, to evade the operation of this universal law, but the common fate was now about to overtake them, and nothing would avail to avert it save the overthrow of the system of private capitalism of which it always had been and always must be the necessary effect.
"Time would fail even to mention the innumerable reform nostrums offered for the cure of the nation by smaller bodies of reformers. They ranged from the theory of the prohibitionists that the chief cause of the economic distress--from which the teetotal farmers of the West were the worst sufferers--was the use of intoxicants, to that of the party which agreed that the nation was being divinely chastised because there was no formal recognition of the Trinity in the Const.i.tution. Of course, these were extravagant persons, but even those who recognized the concentration of wealth as the cause of the whole trouble quite failed to see that this concentration was itself the natural evolution of private capitalism, and that it was not possible to prevent it or any of its consequences unless and until private capitalism itself should be put an end to.
"As might be expected, efforts at resistance so ill calculated as these demonstrations of the wage-earners and farmers, not to speak of the host of petty sects of so-called reformers during the first phase of the Revolution, were ineffectual. The great labor organizations which had sprung up shortly after the war as soon as the wage-earners felt the necessity of banding themselves to resist the yoke of concentrated capital, after twenty-five years of fighting, had demonstrated their utter inability to maintain, much less to improve, the condition of the workingman. During this period ten or fifteen thousand recorded strikes and lock-outs had taken place, but the net result of the industrial civil war, protracted through so long a period, had been to prove to the dullest of workingmen the hopelessness of securing any considerable amelioration of their lot by cla.s.s action or organization, or indeed of even maintaining it against encroachments. After all this unexampled suffering and fighting, the wage-earners found themselves worse off than ever. Nor had the farmers, the other great division of the insurgent ma.s.ses, been any more successful in resisting the money power. Their leagues, although controlling votes by the million, had proved even more impotent if possible than the wage-earners" organizations to help their members. Even where they had been apparently successful and succeeded in capturing the political control of states, they found the money power still able by a thousand indirect influences to balk their efforts and turn their seeming victories into apples of Sodom, which became ashes in the hands of those who would pluck them.
"Of the vast, anxious, and anguished volume of public discussion as to what should be done, what after twenty-five years had been the practical outcome? Absolutely nothing. If here and there petty reforms had been introduced, on the whole the power of the evils against which those reforms were directed had vastly increased. If the power of the plutocracy in 1873 had been as the little finger of a man, in 1895 it was thicker than his loins. Certainly, so far as superficial and material indications went, it looked as if the battle had been going thus far steadily, swiftly, and hopelessly against the people, and that the American capitalists who expended their millions in buying t.i.tles of n.o.bility for their children were wiser in their generation than the children of light and better judges of the future.
"Nevertheless, no conclusion could possibly have been more mistaken.
During these decades of apparently unvaried failure and disaster the revolutionary movement for the complete overthrow of private capitalism had made a progress which to rational minds should have presaged its complete triumph in the near future."
"Where had the progress been?" I said; "I don"t see any."
"In the development among, the ma.s.ses of the people of the necessary revolutionary temper," replied the doctor; "in the preparation of the popular mind by the only process that could have prepared it, to accept the programme of a radical reorganization of the economic system from the ground up. A great revolution, you must remember, which is to profoundly change a form of society, must acc.u.mulate a tremendous moral force, an overwhelming weight of justification, so to speak, behind it before it can start. The processes by which and the period during which this acc.u.mulation of impulse is effected are by no means so spectacular as the events of the subsequent period when the revolutionary movement, having obtained an irresistible momentum, sweeps away like straws the obstacles that so long held it back only to swell its force and volume at last. But to the student the period of preparation is the more truly interesting and critical field of study. It was absolutely necessary that the American people, before they would seriously think of undertaking so tremendous a reformation as was implied in the subst.i.tution of public for private capitalism, should be fully convinced not by argument only, but by abundant bitter experience and convincing object lessons, that no remedy for the evils of the time less complete or radical would suffice.
They must become convinced by numerous experiments that private capitalism had evolved to a point where it was impossible to amend it before they would listen to the proposition to end it. This painful but necessary experience the people were gaining during the earlier decades of the struggle. In this way the innumerable defeats, disappointments, and fiascoes which met their every effort at curbing and reforming the money power during the seventies, eighties, and early nineties, contributed far more than as many victories would have done to the magnitude and completeness of the final triumph of the people. It was indeed necessary that all these things should come to pa.s.s to make the Revolution possible. It was necessary that the system of private and cla.s.s tyranny called private capitalism should fill up the measure of its iniquities and reveal all it was capable of, as the irreconcilable enemy of democracy, the foe of life and liberty and human happiness, in order to insure that degree of momentum to the coming uprising against it which was necessary to guarantee its complete and final overthrow. Revolutions which start too soon stop too soon, and the welfare of the race demanded that this revolution should not cease, nor pause, until the last vestige of the system by which men usurped power over the lives and liberties of their fellows through economic means was destroyed. Therefore not one outrage, not one act of oppression, not one exhibition of conscienceless rapacity, not one prost.i.tution of power on the part of Executive, Legislature, or judiciary, not one tear of patriotic shame over the degradation of the national name, not one blow of the policeman"s bludgeon, not a single bullet or bayonet thrust of the soldiery, could have been spared. Nothing but just this discipline of failure, disappointment, and defeat on the part of the earlier reformers could have educated the people to the necessity of attacking the system of private capitalism in its existence instead of merely in its particular manifestations.
"We reckon the beginning of the second part of the revolutionary movement to which we give the name of the coherent or rational phase, from the time when there became apparent a clear conception, on the part of at least a considerable body of the people, of the true nature of the issue as one between the rights of man and the principle of irresponsible power embodied in private capitalism, and the realization that its outcome, if the people were to triumph, must be the establishment of a wholly new economic system which should be based upon the public control in the public interest of the system of production and distribution hitherto left to private management."
"At about what date," I asked, "do you consider that the revolutionary movement began to pa.s.s from the incoherent into the logical phase?"
"Of course," replied the doctor, "it was not the case of an immediate outright change of character, but only of the beginning of a new spirit and intelligence. The confusion and incoherence and short-sightedness of the first period long overlapped the time when the infusion of a more rational spirit and adequate ideal began to appear, but from about the beginning of the nineties we date the first appearance of an intelligent purpose in the revolutionary movement and the beginning of its development from a mere formless revolt against intolerable conditions into a logical and self-conscious evolution toward the order of to-day."
"It seems I barely missed it."
"Yes," replied the doctor, "if you had been able to keep awake only a year or two longer you would not have been so wholly surprised by our industrial system, and especially by the economic equality for and by which it exists, for within a couple of years after your supposed demise the possibility that such a social order might be the outcome of the existing crisis was being discussed from one end of America to the other.
"Of course," the doctor went on, "the idea of an integrated economic system co-ordinating the efforts of all for the common welfare, which is the basis of the modern state, is as old as philosophy. As a theory it dates back to Plato at least, and n.o.body knows how much further, for it is a conception of the most natural and obvious order. Not, however, until popular government had been made possible by the diffusion of intelligence was the world ripe for the realization of such a form of society. Until that time the idea, like the soul waiting for a fit incarnation, must remain without social embodiment. Selfish rulers thought of the ma.s.ses only as instruments for their own aggrandizement, and if they had interested themselves in a more exact organization of industry it would only have been with a view of making that organization the means of a more complete tyranny. Not till the ma.s.ses themselves became competent to rule was a serious agitation possible or desirable for an economic organization on a co-operative basis. With the first stirrings of the democratic spirit in Europe had come the beginning of earnest discussion as to the feasibility of such a social order. Already, by the middle of the century, this agitation in the Old World had become, to discerning eyes, one of the signs of the times, but as yet America, if we except the brief and abortive social experiments in the forties, had remained wholly unresponsive to the European movement.
"I need not repeat that the reason, of course, was the fact that the economic conditions in America had been more satisfactory to the ma.s.ses than ever before, or anywhere else in the world. The individualistic method of making a living, every man for himself, had answered the purpose on the whole so well that the people did not care to discuss other methods. The powerful motive necessary to rouse the sluggish and habit-bound minds of the ma.s.ses and interest them in a new and revolutionary set of ideas was lacking. Even during the early stage of the revolutionary period it had been found impossible to obtain any hearing for the notions of a new economic order which were already agitating Europe. It was not till the close of the eighties that the total and ridiculous failure of twenty years of desperate efforts to reform the abuses of private capitalism had prepared the American people to give serious attention to the idea of dispensing with the capitalist altogether by a public organization of industry to be administered like other common affairs in the common interest.
"The two great points of the revolutionary programme--the principle of economic equality and a nationalized industrial system as its means and pledge--the American people were peculiarly adapted to understand and appreciate. The lawyers had made a Const.i.tution of the United States, but the true American const.i.tution--the one written on the people"s hearts--had always remained the immortal Declaration with its a.s.sertion of the inalienable equality of all men. As to the nationalization of industry, while it involved a set of consequences which would completely transform society, the principle on which the proposition was based, and to which it appealed for justification, was not new to Americans in any sense, but, on the contrary, was merely a logical development of the idea of popular self-government on which the American system was founded. The application of this principle to the regulation of the economic administration was indeed a use of it which was historically new, but it was one so absolutely and obviously implied in the content of the idea that, as soon as it was proposed, it was impossible that any sincere democrat should not be astonished that so plain and common-sense a corollary of popular government had waited so long for recognition. The apostles of a collective administration of the economic system in the common interest had in Europe a twofold task: first, to teach the general doctrine of the absolute right of the people to govern, and then to show the economic application of that right. To Americans, however, it was only necessary to point out an obvious although hitherto overlooked application of a principle already fully accepted as an axiom.
"The acceptance of the new ideal did not imply merely a change in specific programmes, but a total facing about of the revolutionary movement. It had thus far been an attempt to resist the new economic conditions being imposed by the capitalists by bringing back the former economic conditions through the restoration of free compet.i.tion as it had existed before the war. This was an effort of necessity hopeless, seeing that the economic changes which had taken place were merely the necessary evolution of any system of private capitalism, and could not be successfully resisted while the system was retained.
""Face about!" was the new word of command. "Fight forward, not backward!
March with the course of economic evolution, not against it. The compet.i.tive system can never be restored, neither is it worthy of restoration, having been at best an immoral, wasteful, brutal scramble for existence. New issues demand new answers. It is in vain to pit the moribund system of compet.i.tion against the young giant of private monopoly; it must rather be opposed by the greater giant of public monopoly. The consolidation of business in private interests must be met with greater consolidation in the public interest, the trust and the syndicate with the city, State, and nation, capitalism with nationalism.
The capitalists have destroyed the compet.i.tive system. Do not try to restore it, but rather thank them for the work, if not the motive, and set about, not to rebuild the old village of hovels, but to rear on the cleared place the temple humanity so long has waited for."
"By the light of the new teaching the people began to recognize that the strait place into which the republic had come was but the narrow and frowning portal of a future of universal welfare and happiness such as only the Hebrew prophets had colors strong enough to paint.
"By the new philosophy the issue which had arisen between the people and the plutocracy was seen not to be a strange and unaccountable or deplorable event, but a necessary phase in the evolution of a democratic society in pa.s.sing from a lower to an incomparably higher plane, an issue therefore to be welcomed not shunned, to be forced not evaded, seeing that its outcome in the existing state of human enlightenment and world-wide democratic sentiment could not be doubtful. By the road by which every republic had toiled upward from the barren lowlands of early hardship and poverty, just at the point where the steepness of the hill had been overcome and a prospect opened of pleasant uplands of wealth and prosperity, a sphinx had ever stood, propounding the riddle, "How shall a state combine the preservation of democratic equality with the increase of wealth?" Simple indeed had been the answer, for it was only needful that the people should so order their system of economy that wealth should be equally shared as it increased, in order that, however great the increase, it should in no way interfere with the equalities of the people; for the great justice of equality is the well of political life everlasting for peoples, whereof if a nation drink it may live forever.
Nevertheless, no republic before had been able to answer the riddle, and therefore their bones whitened the hilltop, and not one had ever survived to enter on the pleasant land in view. But the time had now come in the evolution of human intelligence when the riddle so often asked and never answered was to be answered aright, the sphinx made an end of, and the road freed forever for all the nations.
"It was this note of perfect a.s.surance, of confident and boundless hope, which distinguished the new propaganda, and was the more commanding and uplifting from its contrast with the blank pessimism on the one side of the capitalist party, and the petty aims, cla.s.s interests, short vision, and timid spirit of the reformers who had hitherto opposed them.
"With a doctrine to preach of so compelling force and beauty, promising such good things to men in so great want of them, it might seem that it would require but a brief time to rally the whole people to its support.
And so it would doubtless have been if the machinery of public information and direction had been in the hands of the reformers or in any hands that were impartial, instead of being, as it was, almost wholly in those of the capitalists. In previous periods the newspapers had not represented large investments of capital, having been quite crude affairs. For this very reason, however, they were more likely to represent the popular feeling. In the latter part of the nineteenth century a great newspaper with large circulation necessarily required a vast investment of capital, and consequently the important newspapers of the country were owned by capitalists and of course carried on in the owners" interests. Except when the capitalists in control chanced to be men of high principle, the great papers were therefore upon the side of the existing order of things and against the revolutionary movement.
These papers monopolized the facilities of gathering and disseminating public intelligence and thereby exercised a censorship, almost as effective as that prevailing at the same time in Russia or Turkey, over the greater part of the information which reached the people.