We have agreed that we do not mean to be unfair either to the banker or the manufacturer; we are simply going to stop their being unfair to us.
We are going to convince them that their power to catch us in a nut-cracker is forever at an end. We allow them six per cent on their investments, and guarantee them this by turning over to them some of our new money--that is, government bonds. When we have thoroughly convinced them that they can"t get any more, they will take these bonds and quit; and thus simply, without violence or destruction of property, we shall slide from our present system of commercial cannibalism into the new co-operative commonwealth.
We have had "cheap money" campaigns in the United States many times, and as this book is written, it becomes evident that we are to have another.
Henry Ford is advocating the idea, and so is Thomas A. Edison. The present writer would like to make plain that in supporting such a program, he does it for one purpose, and one only--the taking over of the industries by the community. The creation of state credit for that purpose is the next step in the progress of human society; whereas the creation of state credit for the continuance of the profit system is a piece of futility amounting to imbecility. This distinction is fundamental, and is the test by which to judge the usefulness of any new program, and the intelligence of those who advocate it.
CHAPTER LXX
THE CONTROL OF INDUSTRY
(Discusses various programs for the change from industrial autocracy to industrial democracy.)
The program of the railway workers for the democratic management of their industry is embodied in the Plumb plan. You may learn about it by addressing the weekly paper of the railway brotherhoods, which is called "Labor," and is published in Washington, D. C. It appears that our transportation industry can be at once socialized, because of a clause in the const.i.tution which gives the national government power over "roads and communications." Through decades of mismanagement under the system of private greed, the railroads have been brought to such a financial condition that they will be forced into nationalization, whenever we stop them from dipping their fingers into the public treasury.
Under the Plumb plan the government is to purchase the roads from their present owners, paying with government bonds. The management is to be under the control of a board consisting in part of representatives of the government, and in part of the workers--this being a combination of the methods of Socialism and Syndicalism. The same program can be applied const.i.tutionally to telegraphs and telephones, to interstate trolley systems, express companies, oil pipe lines, and all other means of interstate communication and distribution.
The Plumb plan also deals with coal and steel and other great industries. These could not be nationalized without a const.i.tutional amendment, but it appears that in the majority of the const.i.tutions of the states are provisions that all corporate charters are held subject to the power of the legislature to amend, modify, or revoke the same.
That gives us a right to take over these corporations through state action. The only preliminary is to elect state administrations which will represent us, instead of representing the corporations. Also, most state const.i.tutions contain the provision that "no corporation shall issue its stocks or bonds, except for money, labor, or property actually received." The word "labor" gives the opening wedge for the Plumb plan.
The state can purchase these industries, giving bonds in exchange, and can issue to the workers labor stock, which stock will carry part control of the industry.
Also, the railroad brotherhoods have started their own bank, in Cleveland, Ohio, and it is proving an enormous success. Make note of this point; every large labor union can have its own bank, to finance its industries and its propaganda. Stop and consider how preposterous it is that the five million organized workers of the United States should deposit their hundreds of millions of savings in capitalist banks, to be used to finance private undertakings which crush unions and hold labor in bondage. Let every big labor union have its own building, its own banking and insurance business, its own vacation camp in the country, its own school for training its future leaders. Also, let every labor council in every big city start a labor daily, to tell the workers the truth and point the way to freedom. Let every farmers" organization follow suit; and let these groups get together, to exchange their products upon a co-operative basis. Already the railway men are arranging with the farmers, to buy the farm products and distribute them co-operatively; they are getting together with the clothing workers, to have the latter make clothing for them, and with the shoe-workers to make shoes.
This is the co-operative movement, which has become the largest single industry in Great Britain, and is the backbone of industrial democracy and sound radicalism. It is spreading rapidly in America now. It is taking the money of the people out of the control of the profit system, and diverting it into channels of public service. It is training men to believe in brotherhood instead of in greed. It is giving them business experience, so that when the time comes the taking over of our industrial machine will not have to be done by amateurs, but by men who know what co-operation is, and how to make a success of it.
This work will go on more rapidly yet when the workers have united politically, and brought into power a government which will a.s.sist them instead of a.s.sisting the bankers. A most interesting program for the development of working-cla.s.s financial credit is known as the "Douglas plan," which is advocated by a London weekly, the "New Age," and is explained in two books, called "Economic Democracy" and "Credit Power and Democracy," by Douglas and Orage. This program is in brief that the furnishing of credit shall become a function of organized labor, based upon the fact that the true and ultimate basis of all credit is the power of hand and brain labor to produce wealth. The labor unions, or "guilds," shall pay the management of industry and pay capital for the use of the industrial plant, and shall finance production and new industrial development out of their "credit power," their ability to promise production and to keep their promises.
This "Douglas plan" seeks to break the Money Trust by the method of Syndicalism. Another method of breaking it, through state regulation of bank loans, you will find most completely set forth in an extremely able book, "The Strangle Hold," by H. C. Cutting, an American business man, whom you may address at San Lorenzo, California. Another method, utilizing the third factor in industry, the consumer, is the method of banking by consumers" unions. Such are the Raffeisen banks, widely known in Germany, and a specimen of which exists in the single tax colony at Arden, Delaware. Those who wish to know about the co-operative bank, or other forms of co-operation, may apply to the Co-operative League of America, 2 West 13th Street, New York, whose president is Dr. James P.
Warba.s.se. Information concerning public ownership may be had from the Public Ownership League, 127 N. Dearborn Street, Chicago; also from the Socialist party, 220 South Ashland Boulevard, Chicago, and from the Bureau of Social Research of the Rand School of Social Science, New York.
Also, I ought to mention the very interesting plan for social reconstruction set forth by Mr. King C. Gillette, inventor of the safety razor. This plan you may find in your public library in two encyclopedic volumes, "Gillette"s Social Redemption," and "Gillette"s World Solution." The politician seeks to solve the industrial problem by means of the state, and the labor leader seeks to solve it by the unions; it is to be expected that Mr. Gillette, a capitalist, should seek to solve it by means of the corporation. He points out that the modern "trust" is the greatest instrument of production yet invented by man; and he asks why the people should not form their own "trust," to handle their own affairs, and to purchase and take over the industries from their present private masters. It is interesting to note that Mr. Gillette"s solution is fully as radical and thorough-going as those of the State Socialists or the Syndicalists. The "People"s Corporation" which he projects and plans some day to launch upon the world would be a gigantic "consumers"
union," whose "credit power" would speedily dominate and absorb all other powers in modern society; it would make us all stockholders, and give us our share of the benefits of social productivity.
CHAPTER LXXI
THE NEW WORLD
(Describes the co-operative commonwealth, beginning with its money aspects; the standard wage and its variations.)
It has been indicated that the new society will be different in different countries and in different parts of the same country, in different industries and at different times. No one can predict exactly what it will be, and anyone who tries to predict is unscientific. But every man can work out his own ideas of the most economical and sensible arrangements for a co-operative society, and in these final chapters I set forth my ideas.
One of the first things people ask is, "Will there be money in the new society, or how will labor be rewarded and goods paid for?" I answer that there will be money, and the business methods of the new society will be so nearly the same as at present that in this respect you would hardly realize there had been any change. The only difference will be that in the new society you will be paid several times as much for your labor; or, if you prefer to put it the other way, you will be able to buy several times as much with your money. Why should we waste our time working out systems of "credit-cards," when we already have a system in the form of gold and silver coins and paper currency? Why should we bother with "labor checks," when we have a banking and clearing-house system, understood by everyone but the illiterate? The only difference we shall make is that n.o.body can get gold and silver coins or paper currency, except by performing labor to pay for them; n.o.body can have money in the bank and draw checks against it, until he has rendered to society an equivalent amount of service.
When you have earned your money in the new world, you will spend it wherever you please, and for whatever you please; the only difference being that the price you pay will be the exact labor-cost of producing that article, with no deduction for any form of exploitation. As I wrote sixteen years ago in "The Industrial Republic," you will be able to get, if you insist upon it, a seven-legged spider made of diamonds, and the only question society will ask is, Have you performed services equivalent to the material and labor necessary to the creating of that unusual article of commerce? Of course, society won"t put it to you in that complicated formula; it will simply ask, "Have you got the price?"
Which, you observe, is exactly the question society asks you at present.
The next thing that everybody wants to know is, "Shall we all be paid the same wages?" I answer, yes and no, because there will be three systems of payment. There will be a basic wage, which everybody will get for every kind of useful service necessary to production; this will be, as it were, the foundation of our economic structure. On top of this will be built a system of special payments for special services, which are of an intellectual nature, and cannot be standardized and dealt with wholesale. In addition, there will be for a time a third arrangement, applying to agricultural work, which is in a different stage of development, and to which different conditions apply.
Let us take, first, our standard wage. The census of our Utopian commonwealth reveals that we have ten million able-bodied workers engaged in mining, manufacturing, and transportation; this including, of course, office-work and management--everything that enters into these industries. By scientific management, the best machinery, and the elimination of all possible waste, we find that they produce eighty million dollars worth of goods an hour. A portion of this we have to set aside to pay for the raw materials which they do not produce, and for the upkeep of the plant, and for margin of error--what our great corporations call a surplus. We find that we have fifty million dollars per hour left, and that means that we can pay for labor five dollars per hour, or twenty dollars for the regular four-hour day. This is our standard wage, received by all able-bodied workers.
But quickly we find that our industries are not properly balanced. A great many men want to work at the jobs which are clean and pleasant, such as delivering mail, and very few want to work at washing dishes in restaurants and cleaning the sewers. There is no way we can adjust this, except by paying a higher wage, or by reducing the number of hours in the working day, which is the same thing. The only other method would be to have the state a.s.sign men to their work, and that would be bureaucracy and slavery, the essence of everything we wish to get away from in our co-operative commonwealth.
What we shall have, so far as concerns our basic industries, is a government department, registering with mathematical accuracy the condition of supply and demand in all the industries of the country. Our demand for shoes is increasing, for some reason or other; a thousand more shoe-workers are needed, therefore the price of labor in the shoe industry is increased five cents per day--or whatever amount will draw that number of workers from other occupations. On the other hand, there are too many people applying for the job of driving trucks, therefore we reduce slightly the compensation for this work. There are more men who want jobs in Southern California than in Alaska, therefore the payment for the same grade of work in Alaska has to be higher. All this is not merely speculation, it is not a matter of anybody"s choice; it is an automatic, self-adjusting system, subject to precise calculations. The only change from our present system is from guesswork to exact measurement. At present we do not know how many shoes our country will require next season, neither do we know how many shoes are going to be made, neither do we know how many people can make shoes, nor how many would like to learn, nor how many would like to quit that job and take to farming. It would be the simplest matter in the world to find out these things--far simpler that it was to register all our possible soldiers, and examine them physically and mentally, and train them and feed them and ship them overseas to "can the Kaiser."
Of course, we drafted the men for this war job; but in the new world n.o.body is drafted for anything. It is any man"s privilege to starve if he feels like it; it is his privilege to go out into the mountains and live on nuts and berries if he can find them. n.o.body makes him go anywhere, or makes him work at anything--unless, of course, he is a convicted criminal. To the free citizen all that society has to say is, if he buys any products, he must pay for those products with his own labor, and not with some other man"s labor. Of course, he may steal, or cheat, as under capitalism; our new world has laws against stealing and cheating, and does its best to enforce them. The difference between the capitalist world and our world is merely that we make it impossible for any man to get money _legally_ without working.
Under these conditions the average man wishes to work, and the only question remaining is, how shall he work? If he wants to work by himself, and in his own way, n.o.body objects to it. He is able to buy anything he pleases, whether raw materials or finished products. If he wants to buy leather and make shoes after his own pattern, no one stops him, and if he can find anyone to buy these shoes, he can earn his living in that way. He is able to get land for as long a time as he wants it, by paying to the state the full rental value of that land, and if he wants to farm the land, he can do so, and sell his products. As a matter of theory, he is perfectly free to hire others to farm the land for him, or with him. There is no law to prevent it, neither is there any law to prevent his renting a factory and buying machinery, and hiring labor to make shoes.
But, as a matter of practical fact, it is impossible for him to do this, because the community is in the business of making shoes, and on an enormous scale, with great factories run democratically by the workers, and there is very small chance of any private business man being able to draw the workers away from these factories. The community factories have all the latest machinery; they apply the latest methods of scientific management, and they turn out standard shoes at such a rate that private compet.i.tion is unthinkable. Of course, there may be some special kind of shoes, involving an intellectual element, in which there can be private compet.i.tion. This kind of manufacture is covered in our second method of payment; but before we discuss it, let us settle the problem of our most important basic industry, which is agriculture.
CHAPTER LXXII
AGRICULTURAL PRODUCTION
(Discusses the land in the new world, and how we foster co-operative farming and co-operative homes.)
Farming the land is a very ancient industry, and while its tools have been improved, its social forms have been the same for a long time. The worker on the land is conservative, and the Russian Bolsheviks, who tried to rush their peasants into Communism, found that they had only succeeded in stopping the production of food. We make no such blunder in our new society. We have found a way to abolish speculation in land, and exploitation based on land-ownership, while leaving the farmer free to run his business in the old way if he wants to.
In our new society we take the full rental value of all land which is not occupied and used by the state. The farmer and the city dweller alike "own" their land, in the sense that they have the use of it for as long as they please, but they pay to the state the rental value of the land, minus the improvements. So they cannot speculate in the land or rent it out to others; they can only use it, and they only pay for what they actually use. They may put improvements on the land, with full a.s.surance of having the use and benefit thereof, and they may sell the improvements, and the new owner enters into possession, with no obligation but to pay the rental value of the unimproved land to the state.
The farmer goes on raising his products, and if he wants to drive to town and deliver them to his customers, he may do so; but he finds it cheaper to market them through the great labor co-operatives and state markets. As there is no longer any private interest involved in these activities, no one has any interest in cheating him, and he gets the full value of the products, less the cost of marketing. If the farmer wishes to continue all his life in his old style individualistic method of working the land, he is free to do so. But here is what he sees going on within a few miles of his place:
The state has bought a square mile of land, and has taken down the fences and established an agricultural co-operative for purposes of experiment and demonstration. The farm is run under the direction of experts; the soils are treated with exactly the right fertilizers for each crop, the best paying crops are raised, the best seed is used, and the best machinery. The workers of this new agricultural co-operative receive the standard wage, and they live in homes specially built for them, with all the conveniences made possible by wholesale production.
Also, these co-operators live in a democratic community; they determine their own conditions of labor, being represented on the governing board, along with the experts appointed by the state.
The farmer watches this experiment, at first with suspicion; but he finds that his sons have less suspicion than he has, and his sons keep pointing out to him that their little farm is not making the standard wage or anything like it; and, moreover, the standard wage is constantly increasing, whereas, the price of farm-products is dropping. And here is the state, ready to direct new co-operative ventures, inviting a score of farmers in the community to combine and buy out the unwilling ones, and establish a new co-operative. Sooner or later the old farmer gives way; or he dies, and his sons belong to the new world.
So ultimately we have our national agricultural system, in which all the requirements of our people are studied, and all the possibilities of our soil and climate, and the job of raising the exact quant.i.ties of food that we need, both for our own use and for export, is worked out as one problem. We know how much lumber we need, and we raise it on all our hillsides and mountain slopes, and so protect ourselves from floods and the denuding of our continent. We know where best to raise our wheat, and where best to raise our potatoes and our cabbages, and we do not do this by crude hand-labor, nor by the labor of women and children from daybreak till dark. We have special machines that plant each crop, and other machines that reap it or dig it out of the ground and prepare it for market.
A few days ago I read a discussion in the Chamber of Commerce of Calcutta. Some one called attention to the wastes involved in the current method of handling rubber. One consignment of rubber had been sold more than three hundred separate times, and the cost of these transactions amounted to three times the value of the rubber. This is only one ill.u.s.tration, and I might quote a thousand. If you doubt my figures as to the possibility of production in the new society, remind yourself that a large percentage of the things you use have been bought and sold many scores of times before you get them. Consider the cabbage, for which you pay six or eight cents a pound in the grocery store, and for which the farmer gets, say, half a cent a pound.
In this new world the state has an enormous income, derived from its tax on land values. It no longer has to send around men once a year to ask you how many diamond rings your wife has, and to tax you on your honesty, if you have any. It no longer has to make its money by such lying devices as a tariff, therefore its moral being is no longer poisoned by a tariff-lobby. It taxes every citizen for the right to use that which nature created, and leaves free from taxation that which the citizens" own labor created; this kind of taxation is honest, and fair to all, because no one can evade it. The state uses the proceeds of this land tax in the public services, the libraries and research laboratories and information bureaus; in free insurance against fire and flood and tempest; and in a pension to every member of society above the working age of fifty-five, or below the working age of eighteen. Of course, the state might leave it to every man to save up for his old age, but not all men are this wise, and the state cannot afford to let the unwise ones starve. It is more convenient for the state to figure that all men, or nearly all, are going to be old, and to hold back some of their money while they are young and strong, in the certainty that when they are old, they will appreciate this service. Also the state takes care of the sick and incapacitated, and the mentally or physically defective. But we do not leave these latter loose in the world to reproduce their defects; we have in our new world some sense of responsibility to the future, and there is nothing to which we devote more effort than making certain that nothing unsound or abnormal is allowed entrance into life.
The problem of the care of children is a complicated one, and our new society is in process of solving it. We look back on the old world in which the having of children was heavily taxed, in the form of an obligation to care for these children until they were old enough to work. Then the parents were allowed to exploit the labor of the children, so that among the very poor the raising of children was a business speculation, like the raising of slaves or poultry. But in our new world we consider the interest of the child, and of the society in which that child is to be a citizen. We decide that this society must have citizens, and that the raising of the future citizens is a work just exactly as necessary and useful as the raising of a crop of cabbages. Therefore, we pay a pension to all mothers while they are raising and caring for children. At the same time we a.s.sert the right to see that this money is wisely spent, and that the child is really cared for. If it is neglected, we are quick to take it away from its parents, and put it in one of our twenty-four-hour-a-day schools.
We realize that the home is an ancient industry, even more ancient than agriculture, and we do not try to socialize it all at once. But just as we demonstrate to farmers that the individual farm does not pay, so we demonstrate to mothers the wastefulness of the single laundry, the single kitchen, the single nursery. We establish community laundries, community kitchens, community nurseries, and invite our women to help in these activities, and to learn there, under expert guidance, the advantages of domestic co-operation. We convince them by showing better results in the health and happiness of the children, and in the time and strength of the mothers. So, little by little, we widen the field of co-operative endeavor, and increase the total product of human labor and the total enjoyment of human life.