4. Finally, interest on money is the condition of capital"s circulation and the chief agent of industrial solidarity. This aspect has been seized by all the economists, and we shall give it special treatment when we come to deal with credit.
I have proved, and better, I imagine, than it has ever been proved before:
That monopoly is necessary, since it is the antagonism of compet.i.tion;
That it is essential to society, since without it society would never have emerged from the primeval forests and without it would rapidly go backwards;
Finally, that it is the crown of the producer, when, whether by net product or by interest on the capital which he devotes to production, it brings to the monopolist that increase of comfort which his foresight and his efforts deserve.
Shall we, then, with the economists, glorify monopoly, and consecrate it to the benefit of well-secured conservatives? I am willing, provided they in turn will admit my claims in what is to follow, as I have admitted theirs in what has preceded.
% 2.--The disasters in labor and the perversion of ideas caused by monopoly.
Like compet.i.tion, monopoly implies a contradiction in its name and its definition. In fact, since consumption and production are identical things in society, and since selling is synonymous with buying, whoever says privilege of sale or exploitation necessarily says privilege of consumption and purchase: which ends in the denial of both. Hence a prohibition of consumption as well as of production laid by monopoly upon the wage-receivers. Compet.i.tion was civil war, monopoly is the ma.s.sacre of the prisoners.
These various propositions are supported by all sorts of evidence,-- physical, algebraic, and metaphysical. What I shall add will be only the amplified exposition: their simple announcement demonstrates them.
Every society considered in its economic relations naturally divides itself into capitalists and laborers, employers and wage- receivers, distributed upon a scale whose degrees mark the income of each, whether this income be composed of wages, profit, interest, rent, or dividends.
From this hierarchical distribution of persons and incomes it follows that Say"s principle just referred to: IN A NATION THE NET PRODUCT IS EQUAL TO THE GROSS PRODUCT, is no longer true, since, in consequence of monopoly, the SELLING PRICE is much higher than the COST PRICE. Now, as it is the cost price nevertheless which must pay the selling price, since a nation really has no market but itself, it follows that exchange, and consequently circulation and life, are impossible.
In France, twenty millions of laborers, engaged in all the branches of science, art, and industry, produce everything which is useful to man. Their aggregate annual wages amount, it is estimated, to twenty thousand millions; but, in consequence of the profit (net product and interest) accruing to monopolists, twenty-five thousand millions must be paid for their products.
Now, as the nation has no other buyers than its wage- receivers and wage-payers, and as the latter do not pay for the former, and as the selling-price of merchandise is the same for all, it is clear that, to make circulation possible, the laborer would have to pay five for that for which he has received but four.--What is Property: Chapter IV.[17]
[17] A comparison of this pa.s.sage, as given here, with the English translation of "What is Property" will show a marked variation in the language. This is explained by the fact that the author, in reproducing the pa.s.sage, modified it considerably.
The same is true of another quotation from the same work which will be found a few pages farther on.--Translator.
This, then, is the reason why wealth and poverty are correlative, inseparable, not only in idea, but in fact; this is the reason why they exist concurrently; this is what justifies the pretension of the wage- receiver that the rich man possesses no more than the poor man, except that of which the latter has been defrauded. After the monopolist has drawn up his account of cost, profit, and interest, the wage-paid consumer draws up his; and he finds that, though promised wages stated in the contract as one hundred, he has really been given but seventy- five.
Monopoly, therefore, puts the wage-receivers into bankruptcy, and it is strictly true that it lives upon the spoils.
Six years ago I brought out this frightful contradiction: why has it not been thundered through the press? Why have no teachers of renown warned public opinion? Why have not those who demand political rights for the workingman proclaimed that he is robbed?
Why have the economists kept silent? Why?
Our revolutionary democracy is so noisy only because it fears revolutions: but, by ignoring the danger which it dares not look in the face, it succeeds only in increasing it. "We resemble,"
says M. Blanqui, "firemen who increase the quant.i.ty of steam at the same time that they place weights on the safety-valve."
Victims of monopoly, console yourselves! If your tormentors will not listen, it is because Providence has resolved to strike them:
Non audierunt, says the Bible, quia Deus volebat occidere eos.
Sale being unable to fulfil the conditions of monopoly, merchandise acc.u.mulates; labor has produced in a year what its wages will not allow it to consume in less than fifteen months: hence it must remain idle one-fourth of the year. But, if it remains idle, it earns nothing: how will it ever buy? And if the monopolist cannot get rid of his products, how will his enterprise endure? Logical impossibility multiplies around the workshop; the facts which translate it are everywhere.
"The hosiers of England," says Eugene Buret, "had come to the point where they did not eat oftener than every other day.
This state of things lasted eighteen months." And he cites a mult.i.tude of similar cases.
But the distressing feature in the spectacle of monopoly"s effects is the sight of the unfortunate workingmen blaming each other for their misery and imagining that by uniting and supporting each other they will prevent the reduction of wages.
"The Irish," says an observer, "have given a disastrous lesson to the working cla.s.ses of Great Britain. . . . . They have taught our laborers the fatal secret of confining their needs to the maintenance of animal life alone, and of contenting themselves, like savages, with the minimum of the means of subsistence sufficient to prolong life. . . . . Instructed by this fatal example, yielding partly to necessity, the working cla.s.ses have lost that laudable pride which led them to furnish their houses properly and to multiply about them the decent conveniences which contribute to happiness."
I have never read anything more afflicting and more stupid. And what would you have these workingmen do? The Irish came: should they have been ma.s.sacred? Wages were reduced: should death have been accepted in their stead? Necessity commanded, as you say yourselves. Then followed the interminable hours, disease, deformity, degradation, debas.e.m.e.nt, and all the signs of industrial slavery: all these calamities are born of monopoly and its sad predecessors,--compet.i.tion, machinery, and the division of labor: and you blame the Irish!
At other times the workingmen blame their luck, and exhort themselves to patience: this is the counterpart of the thanks which they address to Providence, when labor is abundant and wages are sufficient.
I find in an article published by M. Leon Faucher, in the "Journal des Economistes" (September, 1845), that the English workingmen lost some time ago the habit of combining, which is surely a progressive step on which they are only to be congratulated, but that this improvement in the morale of the workingmen is due especially to their economic instruction.
"It is not upon the manufacturers," cried a spinner at the meeting in Bolton, "that wages depend. In periods of depression the employers, so to speak, are only the lash with which necessity is armed; and whether they will or no, they have to strike. The regulative principle is the relation of supply to demand; and the employers have not this power. . . . Let us act prudently, then; let us learn to be resigned to bad luck and to make the most of good luck: by seconding the progress of our industry, we shall be useful not only to ourselves, but to the entire country." [Applause.]
Very good: well-trained, model workmen, these! What men these spinners must be that they should submit without complaint to the LASH OF NECESSITY, because the regulative principle of wages is SUPPLY AND DEMAND! M. Leon Faucher adds with a charming simplicity:
English workingmen are fearless reasoners. Give them a FALSE PRINCIPLE, and they will push it mathematically to absurdity, without stopping or getting frightened, as if they were marching to the triumph of the truth.
For my part, I hope that, in spite of all the efforts of economic propagandism, French workingmen will never become reasoners of such power. SUPPLY AND DEMAND, as well as the LASH OF NECESSITY, has no longer any hold upon their minds. This was the one misery that England lacked: it will not cross the channel.
By the combined effect of division, machinery, net product, and interest, monopoly extends its conquests in an increasing progression; its developments embrace agriculture as well as commerce and industry, and all sorts of products. Everybody knows the phrase of Pliny upon the landed monopoly which determined the fall of Italy, latifundia perdidere Italiam.
It is this same monopoly which still impoverishes and renders uninhabitable the Roman Campagna and which forms the vicious circle in which England moves convulsively; it is this monopoly which, established by violence after a war of races, produces all the evils of Ireland, and causes so many trials to O"Connell, powerless, with all his eloquence, to lead his repealers through this labyrinth. Grand sentiments and rhetoric are the worst remedy for social evils: it would be easier for O"Connell to transport Ireland and the Irish from the North Sea to the Australian Ocean than to overthrow with the breath of his harangues the monopoly which holds them in its grasp. General communions and sermons will do no more: if the religious sentiment still alone maintains the morale of the Irish people, it is high time that a little of that profane science, so much disdained by the Church, should come to the aid of the lambs which its crook no longer protects.
The invasion of commerce and industry by monopoly is too well known to make it necessary that I should gather proofs: moreover, of what use is it to argue so much when results speak so loudly?
E. Buret"s description of the misery of the working-cla.s.ses has something fantastic about it, which oppresses and frightens you.
There are scenes in which the imagination refuses to believe, in spite of certificates and official reports. Couples all naked, hidden in the back of an unfurnished alcove, with their naked children; entire populations which no longer go to church on Sunday, because they are naked; bodies kept a week before they are buried, because the deceased has left neither a shroud in which to lay him out nor the wherewithal to pay for the coffin and the undertaker (and the bishop enjoys an income of from four to five hundred thousand francs); families heaped up over sewers, living in rooms occupied by pigs, and beginning to rot while yet alive, or dwelling in holes, like Albinoes; octogenarians sleeping naked on bare boards; and the virgin and the prost.i.tute expiring in the same nudity: everywhere despair, consumption, hunger, hunger! . . And this people, which expiates the crimes of its masters, does not rebel! No, by the flames of Nemesis!
when a people has no vengeance left, there is no longer any Providence for it.
Exterminations en ma.s.se by monopoly have not yet found their poets. Our rhymers, strangers to the things of this world, without bowels for the proletaire, continue to breathe to the moon their melancholy DELIGHTS. What a subject for MEDITATIONS, nevertheless, is the miseries engendered by monopoly!
It is Walter Scott who says:
Formerly, though many years since, each villager had his cow and his pig, and his yard around his house. Where a single farmer cultivates today, thirty small farmers lived formerly; so that for one individual, himself alone richer, it is true, than the thirty farmers of old times, there are now twenty-nine wretched day-laborers, without employment for their minds and arms, and whose number is too large by half. The only useful function which they fulfil is to pay, WHEN THEY CAN, a rent of sixty shillings a year for the huts in which they dwell.[18]
[18] This extract from Scott, as well as that from a parliamentary report cited a few paragraphs later, is here translated from the French, and presumably differs in form somewhat, therefore, from the original English.--Translator.
A modern ballad, quoted by E. Buret, sings the solitude of monopoly:
Le rouet est silencieux dans la vallee: C"en est fait des sentiments de famille.
Sur un peu de fumee le vieil aieul Etend ses mains pales; et le foyer vide Est aussi desole que son coeur.[19]