"In my day," I said, "a peculiar complication of the social problem in America was the existence in the Southern States of many millions of recently freed negro slaves, but partially as yet equal to the responsibility of freedom. I should be interested to know just how the new order adapted itself to the condition of the colored race in the South."
"It proved," replied the doctor, "the prompt solution of a problem which otherwise might have continued indefinitely to plague the American people. The population of recent slaves was in need of some sort of industrial regimen, at once firm and benevolent, administered under conditions which should meanwhile tend to educate, refine, and elevate its members. These conditions the new order met with ideal perfection.
The centralized discipline of the national industrial army, depending for its enforcement not so much on force as on the inability of any one to subsist outside of the system of which it was a part, furnished just the sort of a control--gentle yet resistless--which was needed by the recently emanc.i.p.ated bondsman. On the other hand, the universal education and the refinements and amenities of life which came with the economic welfare presently brought to all alike by the new order, meant for the colored race even more as a civilizing agent than it did to the white population which relatively had been further advanced."
"There would have been in some parts," I remarked, "a strong prejudice on the part of the white population against any system which compelled a closer commingling of the races."
"So we read, but there was absolutely nothing in the new system to offend that prejudice. It related entirely to economic organization, and had nothing more to do then than it has now with social relations. Even for industrial purposes the new system involved no more commingling of races than the old had done. It was perfectly consistent with any degree of race separation in industry which the most bigoted local prejudices might demand."
HOW THE TRANSITION MIGHT HAVE BEEN HASTENED.
"There is just one point about the transition stage that I want to go back to," I said. "In the actual case, as you have stated it, it seems that the capitalists held on to their capital and continued to conduct business as long as they could induce anybody to work for them or buy of them. I suppose that was human nature--capitalist human nature anyway; but it was also convenient for the Revolution, for this course gave time to get the new economic system perfected as a framework before the strain of providing for the whole people was thrown on it. But it was just possible, I suppose, that the capitalists might have taken a different course. For example, suppose, from the moment the popular majority gave control of the national Government to the revolutionists the capitalists had with one accord abandoned their functions and refused to do business of any kind. This, mind you, would have been before the Government had any time to organize even the beginnings of the new system. That would have made a more difficult problem to deal with, would it not?"
"I do not think that the problem would have been more difficult," replied the doctor, "though it would have called for more prompt and summary action. The Government would have had two things to do and to do at once: on the one hand, to take up and carry on the machinery of productive industry abandoned by the capitalists, and simultaneously to provide maintenance for the people pending the time when the new product should become available. I suppose that as to the matter of providing for the maintenance of the people the action taken would be like that usually followed by a government when by flood, famine, siege, or other sudden emergency the livelihood of a whole community has been endangered. No doubt the first step would have been to requisition, for public use all stores of grain, clothing, shoes, and commodities in general throughout the country, excepting of course reasonable stocks in strictly private use. There was always in any civilized country a supply ahead of these necessities sufficient for several months or a year which would be many times more than would be needful to bridge over the gap between the stoppage of the wheels of production under private management and their getting into full motion under public administration. Orders on the public stores for food and clothing would have been issued to all citizens making application and enrolling themselves in the public industrial service. Meanwhile the Government would have immediately resumed the operation of the various productive enterprises abandoned by the capitalists. Everybody previously employed in them would simply have kept on, and employment would have been as rapidly as possible provided for those who had formerly been without it. The new product, as fast as made, would be turned into the public stores and the process would, in fact, have been just the same as that I have described, save that it would have gone through in much quicker time. If it did not go quite so smoothly on account of the necessary haste, on the other hand it would have been done with sooner, and at most we can hardly imagine that the inconvenience and hardship to the people would have been greater than resulted from even a mild specimen of the business crises which your contemporaries thought necessary every seven years, and toward the last of the old order became perpetual.
HOW CAPITALIST COERCION OF EMPLOYEES WAS MET.
"Your question, however," continued the doctor, "reminds me of another point which I had forgotten to mention--namely, the provisional methods of furnishing employment for the unemployed before the organization of the complete national system of industry. What your contemporaries were pleased to call "the problem of the unemployed"--namely, the necessary effect of the profit system to create and perpetuate an unemployed cla.s.s--had been increasing in magnitude from the beginning of the revolutionary period, and toward the close of the century the involuntary idlers were numbered by millions. While this state of things on the one hand furnished a powerful argument for the revolutionary propaganda by the object lesson it furnished of the incompetence of private capitalism to solve the problem of national maintenance, on the other hand, in proportion as employment became hard to get, the hold of the employers over the actual and would-be employees became strengthened. Those who had employment and feared to lose it, and those who had it not but hoped to get it, became, through fear and hope, very puppets in the hands of the employing cla.s.s and cast their votes at their bidding. Election after election was carried in this way by the capitalists through their power to compel the workingman to vote the capitalist ticket against his own convictions, from the fear of losing or hope of obtaining an opportunity to work.
"This was the situation which made it necessary previous to the conquest of the General Government by the revolutionary party, in order that the workingmen should be made free to vote for their own deliverance, that at least a provisional system of employment should be established whereby the wage-earner might be insured a livelihood when unable to find a private employer.
"In different States of the Union, as the revolutionary party came into power, slightly different methods were adopted for meeting this emergency. The crude and wasteful makeshift of indiscriminate employment on public works, which had been previously adopted by governments in dealing with similar emergencies, would not stand the criticism of the new economic science. A more intelligent method was necessary and easily found. The usual plan, though varied in different localities, was for the State to guarantee to every citizen who applied therefor the means of maintenance, to be paid for in his or her labor, and to be taken in the form of commodities and lodgings, these commodities and lodgings being themselves produced and maintained by the sum of the labor of those, past and present, who shared them. The necessary imported commodities or raw materials were obtained by the sale of the excess of product at market rates, a special market being also found in the consumption of the State prisons, asylums, etc. This system, whereby the State enabled the otherwise unemployed mutually to maintain themselves by merely furnishing the machinery and superintendence, came very largely into use to meet the emergencies of the transition period, and played an important part in preparing the people for the new order, of which it was in an imperfect way a sort of antic.i.p.ation. In some of these State establishments for the unemployed the circle of industries was remarkably complete, and the whole product of their labor above expenses being shared among the workers, they enjoyed far better fare than when in private employment, together with a sense of security then impossible. The employer"s power to control his workmen by the threat of discharge was broken from the time these co-operative systems began to be established, and when, later, the national industrial organization was ready to absorb them, they merely melted into it."
HOW ABOUT THE WOMEN?
"How about the women?" I said. "Do I understand that, from the first organization of the industrial public service on a complete scale, the women were expected, like the men, if physically able, to take their places in the ranks?"
"Where women were sufficiently employed already in housework in their own families," replied the doctor, "they were recognized as rendering public service until the new co-operative housekeeping was sufficiently systematized to do away with the necessity of separate kitchens and other elaborate domestic machinery for each family. Otherwise, except as occasions for exemption existed, women took their place from the beginning of the new order as units in the industrial state on the same basis with men.
"If the Revolution had come a hundred years before, when as yet women had no other vocation but housework, the change in customs might have been a striking one, but already at that time women had made themselves a place in the industrial and business world, and by the time the Revolution came it was rather exceptional when unmarried women not of the rich and idle cla.s.s did not have some regular occupation outside the home. In recognizing women as equally eligible and liable to public service with men, the new order simply confirmed to the women workers the independence they had already won."
"But how about the married women?"
"Of course," replied the doctor, "there would be considerable periods during which married women and mothers would naturally be wholly exempt from the performance of any public duty. But except at such times there seems to be nothing in the nature of the s.e.xual relation const.i.tuting a reason why a married woman should lead a more secluded and useless life than a man. In this matter of the place of women under the new order, you must understand that it was the women themselves, rather than the men, who insisted that they must share in full the duties as well as the privileges of citizenship. The men would not have demanded it of them. In this respect you must remember that during its whole course the Revolution had been contemporary with a movement for the enlargement and greater freedom of women"s lives, and their equalization as to rights and duties with men. The women, married as well as unmarried, had become thoroughly tired of being effaced, and were in full revolt against the headship of man. If the Revolution had not guaranteed the equality and comradeship with him which she was fast conquering under the old order, it could never have counted on her support."
"But how about the care of children, of the home, etc.?"
"Certainly the mothers could have been trusted to see that nothing interfered with the welfare of their children, nor was there anything in the public service expected of them that need do so. There is nothing in the maternal function which establishes such a relation between mother and child as need permanently interfere with her performance of social and public duties, nor indeed does it appear that it was allowed to do so in your day by women of sufficient economic means to command needed a.s.sistance. The fact that women of the ma.s.ses so often found it necessary to abandon an independent existence, and cease to live any more for themselves the moment they had children, was simply a mark of the imperfection of your social arrangements, and not a natural or moral necessity. So, too, as to what you call caring for a home. As soon as co-operative methods were applied to housekeeping, and its various departments were systematized as branches of the public service, the former housewife had perforce to find another vocation in order to keep herself busy."
THE LODGINGS QUESTION.
"Talking about housework," I said, "how did they manage about houses?
There were, of course, not enough good lodgings to go around, now that all were economic equals. How was it settled who should have the good houses and who the poor?"
"As I have said," replied the doctor, "the controlling idea of the revolutionary policy at the climax of the Revolution was not to complicate the general readjustment by making any changes at that time not necessary to its main purpose. For the vast number of the badly housed the building of better houses was one of the first and greatest tasks of the nation. As to the habitable houses, they were all a.s.sessed at a graduated rental according to size and desirability, which their former occupants, if they desired to keep them, were expected to pay out of their new incomes as citizens. For a modest house the rent was nominal, but for a great house--one of the palaces of the millionaires, for instance--the rent was so large that no individual could pay it, and indeed no individual without a host of servants would be able to occupy it, and these, of course, he had no means of employing. Such buildings had to be used as hotels, apartment houses, or for public purposes. It would appear that n.o.body changed dwellings except the very poor, whose houses were unfit for habitation, and the very rich, who could make no use of their former habitation under the changed condition of things."
WHEN ECONOMIC EQUALITY WAS FULLY REALIZED.
"There is one point not quite clear in my mind," I said, "and that is just when the guarantee of equal maintenance for all citizens went into effect."
"I suppose," replied the doctor, "that it must have been when, after the final collapse of what was left of private capitalism, the nation a.s.sumed the responsibility of providing for all the people. Until then the organization of the public service had been on the wage basis, which indeed was the only practicable way of initiating the plan of universal public employment while yet the ma.s.s of business was conducted by the capitalists, and the new and rising system had to be accommodated at so many points to the existing order of things. The tremendous rate at which the membership of the national industrial army was growing from week to week during the transition period would have made it impossible to find any basis of equal distribution that would hold good for a fortnight. The policy of the Government had, however, been to prepare the workers for equal sharing by establishing, as far as possible, a level wage for all kinds of public employees. This it was possible to do, owing to the cheapening of all sorts of commodities by the abolition of profits, without reducing any one"s income.
"For example, suppose one workman had received two dollars a day, and another a dollar and a half. Owing to the cheapening of goods in the public stores, these wages presently purchased twice as much as before.
But, instead of permitting the virtual increase of wages to operate by multiplication, so as to double the original discrepancy between the pay of the two, it was applied by equal additions to the account of each.
While both alike were better off than before, the disproportion in their welfare was thus reduced. Nor could the one previously more highly paid object to this as unfair, because the increased value of his wages was not the result of his own efforts, but of the new public organization, from which he could only ask an equal benefit with all others. Thus by the time the nation was ready for equal sharing, a substantially level wage, secured by leveling up, not leveling down, had already been established. As to the high salaries of special employees, out of all proportion to workmen"s wages, which obtained under private capitalism, they were ruthlessly cut down in the public service from the inception of the revolutionary policy.
"But of course the most radical innovation in establishing universal economic equality was not the establishment of a level wage as between the workers, but the admission of the entire population, both of workers and of those unable to work or past the working age, to an equal share in the national product. During the transition period the Government had of necessity proceeded like a capitalist in respect to recognizing and dealing only with effective workers. It took no more cognizance of the existence of the women, except when workers, or the children, or the old, or the infirm, crippled, or sick, or other dependents on the workers than the capitalists had been in the habit of doing. But when the nation gathered into its hands the entire economic resources of the country it proceeded to administer them on the principle--proclaimed, indeed, in the great Declaration, but practically mocked by the former republic--that all human beings have an equal right to liberty, life, and happiness, and that governments rightfully exist only for the purpose of making good that right--a principle of which the first practical consequence ought to be the guarantee to all on equal terms of the economic basis. Thenceforth all adult persons who could render any useful service to the nation were required to do so if they desired to enjoy the benefits of the economic system; but all who acknowledged the new order, whether they were able or unable to render any economic service, received an equal share with all others of the national product, and such provision was made for the needs of children as should absolutely safeguard their interests from the neglect or caprice of selfish parents.
"Of course, the immediate effect must have been that the active workers received a less income than when they had been the only sharers; but if they had been good men and distributed their wages as they ought among those dependent on them, they still had for their personal use quite as much as before. Only those wage-earners who had formerly had none dependent on them or had neglected them suffered any curtailment of income, and they deserved to. But indeed there was no question of curtailment for more than a very short time for any; for, as soon as the now completed economic organization was fairly in motion, everybody was kept too busy devising ways to expend his or her own allowance to give any thought to that of others. Of course, the equalizing of the economic maintenance of all on the basis of citizenship put a final end to the employment of private servants, even if the practice had lasted till then, which is doubtful; for if any one desired a personal servant he must henceforth pay him as much as he could receive in the public service, which would be equivalent to the whole income of the would-be employer, leaving him nothing for himself."
THE FINAL SETTLEMENT WITH THE CAPITALISTS.
"There is one point," I said, "on which I should like to be a little more clearly informed. When the nation finally took possession absolutely in perpetuity of all the lands, machinery, and capital after the final collapse of private capitalism, there must have been doubtless some sort of final settling and balancing of accounts between the people and the capitalists whose former properties had been nationalized. How was that managed? What was the basis of final settlement?"
"The people waived a settlement," replied the doctor. "The guillotine, the gallows, and the firing platoon played no part in the consummation of the great Revolution. During the previous phases of the revolutionary agitation there had indeed been much bitter talk of the reckoning which the people in the hour of their triumph would demand of the capitalists for the cruel past; but when the hour of triumph came, the enthusiasm of humanity which glorified it extinguished the fires of hate and took away all desire of barren vengeance. No, there was no settlement demanded; the people forgave the past."
"Doctor," I said, "you have sufficiently--in fact, overwhelmingly--answered my question, and all the more so because you did not catch my meaning. Remember that I represent the mental and moral condition of the average American capitalist in 1887. What I meant was to inquire what compensation the people made to the capitalists for nationalizing what had been their property. Evidently, however, from the twentieth-century point of view, if there were to be any final settlement between the people and the capitalists it was the former who had the bill to present."
"I rather pride myself," replied the doctor, "in keeping track of your point of view and distinguishing it from ours, but I confess that time I fairly missed the cue. You see, as we look back upon the Revolution, one of its most impressive features seems to be the vast magnanimity of the people at the moment of their complete triumph in according a free quittance to their former oppressors.
"Do you not see that if private capitalism was right, then the Revolution was wrong; but, on the other hand, if the Revolution was right, then private capitalism was wrong, and the greatest wrong that ever existed; and in that case it was the capitalists who owed reparation to the people they had wronged, rather than the people who owed compensation to the capitalists for taking from them the means of that wrong? For the people to have consented on any terms to buy their freedom from their former masters would have been to admit the justice of their former bondage.
When insurgent slaves triumph, they are not in the habit of paying their former masters the price of the shackles and fetters they have broken; the masters usually consider themselves fortunate if they do not have their heads broken with them. Had the question of compensating the capitalists been raised at the time we are speaking of, it would have been an unfortunate issue for them. To their question, Who was to pay them for what the people had taken from them? the response would have been, Who was to pay the people for what the capitalist system had taken from them and their ancestors, the light of life and liberty and happiness which it had shut off from unnumbered generations? That was an accounting which would have gone so deep and reached back so far that the debtors might well be glad to waive it. In taking possession of the earth and all the works of man that stood upon it, the people were but reclaiming their own heritage and the work of their own hands, kept back from them by fraud. When the rightful heirs come to their own, the unjust stewards who kept them out of their inheritance may deem themselves mercifully dealt with if the new masters are willing to let bygones be bygones.
"But while the idea of compensating the capitalists for putting an end to their oppression would have been ethically absurd, you will scarcely get a full conception of the situation without considering that any such compensation was in the nature of the case impossible. To have compensated the capitalists in any practical way--that is, any way which would have preserved to them under the new order any economic equivalent for their former holdings--would have necessarily been to set up private capitalism over again in the very act of destroying it, thus defeating and stultifying the Revolution in the moment of its triumph.
"You see that this last and greatest of revolutions in the nature of the case absolutely differed from all former ones in the finality and completeness of its work. In all previous instances in which governments had abolished or converted to public use forms of property in the hands of citizens it had been possible to compensate them in some other kind of property through which their former economic advantage should be perpetuated under a different form. For example, in condemning lands it was possible to pay for them in money, and in abolishing property in men it was possible to pay for the slaves, so that the previous superiority or privilege held by the property owner was not destroyed outright, but merely translated, so to speak, into other terms. But the great Revolution, aiming as it did at the final destruction of all forms of advantage, dominion, or privilege among men, left no guise or mode possible under which the capitalist could continue to exercise his former superiority. All the modes under which in past time men had exercised dominion over their fellows had been by one revolution after another reduced to the single form of economic superiority, and now that this last incarnation of the spirit of selfish dominion was to perish there was no further refuge for it. The ultimate mask torn off, it was left to wither in the face of the sun."
"Your explanation leaves me nothing further to ask as to the matter of a final settling between the people and the capitalists," I said. "Still, I have understood that in the first steps toward the subst.i.tution of public business management for private capitalism, consisting in the nationalizing or munic.i.p.alizing of quasi-public services, such as gas works, railroads, telegraphs, etc., some theory of compensation was followed. Public opinion, at that stage not having accepted the whole revolutionary programme, must probably have insisted upon this practice.
Just when was it discontinued?"
"You will readily perceive," replied the doctor, "that in measure as it became generally recognized that economic equality was at hand, it began to seem farcical to pay the capitalists for their possessions in forms of wealth which must presently, as all knew, become valueless. So it was that, as the Revolution approached its consummation, the idea of buying the capitalists out gave place to plans for safeguarding them from unnecessary hardships pending the transition period. All the businesses of the cla.s.s you speak of which were taken over by the people in the early stages of the revolutionary agitation, were paid for in money or bonds, and usually at prices most favorable to the capitalists. As to the greater plants, which were taken over later, such as railroads and the mines, a different course was followed. By the time public opinion was ripe for these steps, it began to be recognized by the dullest that it was possible, even if not probable, that the revolutionary programme would go completely through, and all forms of monetary value or obligation become waste paper. With this prospect the capitalists owning the properties were naturally not particularly desirous of taking national bonds for them which would have been the natural form of compensation had they been bought outright. Even if the capitalists had been willing to take the bonds, the people would never have consented to increase the public debt by the five or six billions of bonds that would have been necessary to carry out the purchase. Neither the railroads nor the mines were therefore purchased at all. It was their management, not their ownership, which had excited the public indignation and created the demand for their nationalization. It was their management, therefore, which was nationalized, their ownership remaining undisturbed.
"That is to say, the Government, on the high ground of public policy and for the correction of grievances that had become intolerable, a.s.sumed the exclusive and perpetual management and operation of the railroad lines.
An honest valuation of the plants having been made, the earnings, if any, up to a reasonable percentage, were paid over to the security holders.
This arrangement answered the purpose of delivering the people and the security holders alike from the extortions and mismanagement of the former private operators, and at the same time brought a million railroad employees into the public service and the enjoyment of all its benefits quite as effectively as if the lines had been bought outright. A similar plan was followed with the coal and other mines. This combination of private ownership with public management continued until, the Revolution having been consummated, all the capital of the country was nationalized by comprehensive enactment.
"The general principle which governed the revolutionary policy in dealing with property owners of all sorts was that while the distribution of property was essentially unjust and existing property rights morally invalid, and as soon as possible a wholly new system should be established, yet that, until the new system of property could as a whole replace the existing one, the legal rights of property owners ought to be respected, and when overruled in the public interest proper provision should be made to prevent hardship. The means of private maintenance should not, that is to say, be taken away from any one until the guarantee of maintenance from public sources could take its place. The application of this principle by the revolutionists seems to have been extremely logical, clean cut, and positive. The old law of property, bad as it was, they did not aim to abolish in the name of license, spoliation, and confusion, but in the name of a stricter and more logical as well as more righteous law. In the most nourishing days of capitalism, stealing, so called, was never repressed more sternly than up to the very eve of the complete introduction of the new system.
"To sum up the case in a word," I suggested, "it seems that in pa.s.sing from the old order into the new it necessarily fared with the rich as it did when they pa.s.sed out of this world into the next. In one case, as in the other, they just absolutely had to leave their money behind them."
"The ill.u.s.tration is really very apt," laughed the doctor, "except in one important particular. It has been rumored that the change which Dives made from this world to the next was an unhappy one for him; but within half a dozen years after the new economic system had been in operation there was not an ex-millionaire of the lot who was not ready to admit that life had been made as much better worth living for him and his cla.s.s as for the rest of the community."
"Did the new order get into full running condition so quickly as that?" I asked.
"Of course, it could not get into perfect order as you see it now for many years. The _personnel_ of any community is the prime factor in its economic efficiency, and not until the first generation born under the new order had come to maturity--a generation of which every member had received the highest intellectual and industrial training--did the economic order fully show what it was capable of. But not ten nor two years had elapsed from the time when the national Government took all the people into employment on the basis of equal sharing in the product before the system showed results which overwhelmed the world with amazement. The partial system of public industries and public stores which the Government had already undertaken had given the people some intimation of the cheapening of products and improvement in their quality which might follow from the abolition of profits even under a wage system, but not until the entire economic system had been nationalized and all co-operated for a common weal was it possible completely to pool the product and share it equally. No previous experience had therefore prepared the public for the prodigious efficiency of the new economic enginery. The people had thought the reformers made rather large promises as to what the new system would do in the way of wealth-making, but now they charged them of keeping back the truth. And yet the result was one that need not have surprised any one who had taken the trouble to calculate the economic effect of the change in systems. The incalculable increase of wealth which but for the profit system the great inventions of the century would long before have brought the world, was being reaped in a long-postponed but overwhelming harvest.
"The difficulty under the profit system had been to avoid producing too much; the difficulty under the equal sharing system was how to produce enough. The smallness of demand had before limited supply, but supply had now set to it an unlimited task. Under private capitalism demand had been a dwarf and lame at that, and yet this cripple had been pace-maker for the giant production. National cooperation had put wings on the dwarf and shod the cripple with Mercury"s sandals. Henceforth the giant would need all his strength, all his thews of steel and sinews of bra.s.s even, to keep him in sight as he flitted on before.
"It would be difficult to give you an idea of the tremendous burst of industrial energy with which the rejuvenated nation on the morrow of the Revolution threw itself into the task of uplifting the welfare of all cla.s.ses to a level where the former rich man might find in sharing the common lot nothing to regret. Nothing like the t.i.tanic achievement by which this result was effected had ever before been known in human history, and nothing like it seems likely ever to occur again. In the past there had not been work enough for the people. Millions, some rich, some poor, some willingly, some unwillingly, had always been idle, and not only that, but half the work that was done was wasted in compet.i.tion or in producing luxuries to gratify the secondary wants of the few, while yet the primary wants of the ma.s.s remained unsatisfied. Idle machinery equal to the power of other millions of men, idle land, idle capital of every sort, mocked the need of the people. Now, all at once there were not hands enough in the country, wheels enough in the machinery, power enough in steam and electricity, hours enough in the day, days enough in the week, for the vast task of preparing the basis of a comfortable existence for all. For not until all were well-to-do, well housed, well clothed, well fed, might any be so under the new order of things.