THE ARS ELITE V class HB nj Book Copyright N°. COPYRIGHT DEPOSIT. THE MARSELITE SOME HELPFUL OBSERVATIONS ON SUBJECTS OF INTEREST TO THE EARTH'S PEOPLE BY ROBERT DE MARS PRICE 50 CENTS Copyright, 1911 J. F. Ryan, Publisher Chicago ^l ©CU303236 WHY PRINTED Robert De Mars points out the error in the doctrine of free trade by proving that the free trade and the protection economists were both wrong in assuming that trade was an exchange of goods for goods. This is an entirely new contribution to the sub- ject of political economy, and presents, for the first time, a solid, sound foundation for protective tariff reasoning. The cause of excessive profits in some protected industries is explained. This is new also. Our unwise patent laws are commented on; their part in creating monopolies and trusts is pointed out, and the remedy suggested; and this is new. A plain, sane statement about money and its uses is presented, which is new and interesting to most of the Earth's people. These are some of the reasons why the Marselite's views are made into a book, BY THE PUBLISHER. "Government ownership or Socialism is only possible when the Earth's people are far enough ad- vanced so that the gentleman who has the duty of collecting the fares in your public conveyances is not under the necessity of ringing a bell to announce to all within hearing that he has come into possession of a five-cent piece that doesn't belong to him." — Robert De Mars. SUBJECTS Page The Marselite 7 A Protective Tariff 11 Trade Not Exchange of Goods for Goods. Exchanging Things Not Goods. Protection Not Cause of Excessive Profits. A Fixed Policy. Profits of Importer. Transportation a Waste. Light on Excessive Profits.. 35 Trusts and Patents 37 Reward Inventor and Benefit Public. Amount of Reward. Relieve Congestion of Cities. Observations on Money 47 The Banker. Emergency Money. Exports and Imports 58 For Census Year 1910. About Mars 63 THE MARSELITE He had been here several years, he said, but expected to return to the planet Mars very soon, and he requested that the views which he confided to a few be unpublished till he had returned to his own people. Robert De Mars was our favorite name for him, and if this individual was not from our neighboring planet, he gave us the im- pression of being different from the Earth's people in habits, diet, thought and tempera- ment. The Marselite regarded our social and economic life as very complicated and crude, and he seemed to think we could simplify our affairs in a very short time. Herewith are presented some of the Mar- selite's views, by one who hopes they may be helpful to the World's people. Let us think them over. THE MARSELITE First, the Marselite believes we are afflicted with a short-sighted selfishness which prevents us making rapid social pro- gress. The extremes of poverty and wealth appalled him, as did the vast differences in individual capacities, in intellect and moral- ity. This short-sighted selfishness was mani- fested in the disposition of the individual to get what we term in the vernacular a "cinch." We are, therefore, slow to make laws which would make it difficult for any- body to get a cinch. Down deep in our hearts we all have a hope that some day we will land on the be- loved cinch, and then have leisure, and all the good things of earth, principal of which is to have an audience of the cinchless to admire our superiority. That's what the Marselite said. Let us think it over. There are two other indictments against us, and they are like unto the first. One of these failings is that we are belly cowards. We worship the fetish of three meals a day, and we are in mortal dread of 8 THE MARSELITE missing one or two of them, or having their amplitude curtailed. This seemed to be the principal cause for our lamb-like submission to conditions which could be altered in a few months. The cinch holders will surely not let go without an effort to starve or chill the people so they will not be able to pry the aforesaid cinch holders loose from their ad- vantage. In any discussion of methods of bringing about a change there is apparent, and upper- most, the fear of disturbing things, thus interfering with the dearly cherished food and the gorgeous raiment, or the up-to- dateness of the coats, pantaloons, vests, ties, collars, gowns, hats, etc., with which we are accustomed to disguise our bodies, both as to their beauties and defects. That's what the Marselite said. Let us think it over. The next little indictment against us is that we are "afraid of our wives." Think that over ladies — and husbands. We dread to displease them, and that is one of the chief causes of our industrial dependence. The man would be willing to THE MARSELITE make a fight if it wasn't for the wife and chil- dren. He doesn't dare to go home and say: Here are conditions that can be remedied if we just make a row and curtail our eating, wearing apparel and all our little comforts and pleasures for about six months. It is true that when workmen go on a strike the women often urge on the battle, but that struggle is for their immediate ad- vantage, which means more clothes, more food, more enjoyment, more comfort — right now. Your wife is in sympathy with you and your efforts to better conditions permanent- ly — sure thing — but go home and propose it to her and see what she says. She won't consent to go six months without new clothes and on short rations. That's what the Mar- selite said. Let us think it over gentlemen — and ladies. A PROTECTIVE TARIFF Being the views of one Robert De Mars, a visitor from our neighboring planet. We called him Robert of Mars, so that will have to stand for his name. He had some original views on many subjects, and if he was not from the planet Mars he at least seemed to view our affairs from the attitude of a spectator rather than as a participant. The Marselite believed we were doing pretty well as an undeveloped people, but were afflicted with a short-sighted selfish- ness that very materially hindered our pro- gress. In an economic way we were well advanced in production, but on the subject of exchange we had much to learn. Exchange of products of our labor, and of services, was commented on freely, and some of the Marselite 's views are interesting. First, we will take up the subject of a tariff, or import duty, or what is termed a "Protective Tariff," as this is of great im- portance at this time. THE MARSELITE The people of the United States seem to be divided on the question of whether or not it is wise to have a Protective Tariff. One party is committed to a Protective Tariff for the alleged purpose of fostering and building up manufactories. The other party is in favor of a "Tariff for Revenue," where protection is only incidental. All of the Free Traders, either those who are outspoken for Free Trade, or those who are at heart Free Traders, affiliate and vote with the party which declares for "A Tariff for Revenue Only." It is notable that nearly all of the Pro- fessors of Political Economy are avowed Free Traders. This is due to the fact that the theoretical, scientific argument of the Free Traders seems to be sound, therefore Free Traders have the better of the logical argu- ment. This is accounted for from the acceptance, by all Political Economists, of an axiom, which is — that "trade is an exchange of goods for goods." The formulae is as fol- lows: We exchange goods for money, which THE MARSELITE money is of no use to us until we exchange it again for goods ; hence money — the medium of exchange — only serves to effect the ex- change of " goods for goods." No Protectionist denies this so-called axiom of Political Economy. The some- what complicated system of exchange, and the manner in which it has grown up, gives the appearance of soundness to the doctrine that trade is an exchange of "goods for goods." TRADE IS NOT AN EXCHANGE OF GOODS FOR GOODS The Marselite denies this so-called axiom, and for a reason which seems very simple, and only needs to be pointed out to be self- evident. The error is in the assumption that exchange is confined to goods, the word " goods" signifying the products of capital and labor. As a matter of fact, you ex- change goods for money (or, in international trade, gold). This may or may not be used in the purchase of goods. It is true that we THE MARSELITE must exchange money for other things in order to have any use of the money. Money in itself cannot be used for any purpose other than exchange. What we really do with surplus money (or profits) is to use all or part of it for the purchase of those things which are not goods at all. We may pur- chase with this money land, patent rights, franchises and other things which are not goods, in that they are not concrete, tangible products of capital and labor; hence the ar- gument of the Free Trader, that when we import goods we must pay for these goods in other goods is wholly erroneous. Take the case of the farmer who must purchase manufactured goods : If he has not the money with which to buy these goods, or cannot readily exchange the product of his labor for the money in sufficient amount to buy the goods needed, he does the next best thing, which is to sell his land. It is true that it is not common for a farmer, or home owner, to sell a piece of land to buy goods needed for^ his use. That which he does most frequently is to give a mortgage, but a THE MARSELITE mortgage is a sale of property. Mortgages convey the property to the mortgagee, the instrument of conveyance reserving the right to the mortgagor to buy back the property at the end of a stated time at the price stipu- lated. In this instance the farmer, or the owner of the land, instead of making ex- change of " goods for goods," takes over the goods and pays for them with money which he secures from the sale of the land in the form of a mortgage, and also agrees to pay a stipulated sum per year, which is the in- terest, and then at the end of a stated period must pay back the original cost of the goods, or turn over the land to the mortgagee. Here is a very obvious instance of a case where the exchange is not one of "goods for goods . " As a matter of fact what the farm- er, or landowner, does in this case is to pay for the privilege of living on and using his land. In countries where land is cheap and plenty, land is more frequently sold than in older communities. In a new country land valuations increase rapidly by reason of the increase in population. Hence the persons 15 THE MARSELITE who exchange goods for land have a decided advantage over those who exchange land for goods, or " goods for goods." Goods are perishable and decrease in value even if they are not consumed, whereas lands of all kinds increase in value. Population is the chief factor in giving value to land. This is true of all lands, whether they be mineral, agri- cultural or urban lands, used for manufac- turing, mercantile or residence purposes. EXCHANGING THINGS WHICH ARE NOT GOODS Because the Earth's people exchange those things which are not goods in the same manner commodities are exchanged, there is likely to be confusion in distinguishing between the two radically different things. You can exchange money for land: buy and sell land the same as you do goods, and very frequently you convey in the same transaction land and goods. This is done when you sell land and buildings which are sold under the term "real estate," which 16 THE MARSELITE term includes both the land which is not a commodity (goods), and also the buildings which are the product of capital and labor and are, therefore, goods. When we convey land all we really convey is the right to its exclusive use. In the same way you convey the exclusive right to use the public streets, or an exclu- sive right to serve the people by granting franchises for electric lighting, gas, street car, telephone and water privileges. Here, again, the title to these privileges is usually represented in conjunction with the commodities, such as plants, cars, wires, pipes, etc., etc. This is conveyed by the stock and bonds of the company, and here is another instance where we are likely to get confused and not distinguish between "goods" and the things which are not goods. A patent right is not a commodity though it is bought and sold the same as goods. The thing patented is, of course, the prod- uct of some one's brain and hand, and is, therefore, goods, but you must distinguish i7 THE MARSELITE between the article patented and the exclu- sive right to make or use the article. The right is a franchise granted by the govern- ment and is not " goods." It seems surprising that the author of one of the most widely-known and ably-written books advocating Free Trade should fall into the error of accepting the doctrine that trade was an exchange of " goods for goods," because this author spent the great- er part of his life in the effort to prove that he who could exchange his capital and labor for land and other special privileges had an advantage over his fellows that he should not be permitted to enjoy. It is not necessary to go into a detailed analysis of the advantages to the individual who exchanges his goods — which are per- ishable, hence consumed as they are used — for the indestructible, imperishable things, such as land. When the term land is used it is used in its broadest sense; that is, the economic term "land" which embraces all natural resources. Not only is the manufacturer who disposes 18 THE MARSELITE of his goods for land an example of the fact that trade is not an exchange of " goods for goods." The manufacturer may purchase a patent right, which is an exclusive right to make or do a certain thing in a certain way ; or he may purchase stocks or bonds based upon a franchise to do a certain thing in a certain way ; such, for instance, as gas plants, water works, electric light privileges, street car franchises, etc., which are granted by communities to private individuals or cor- porations: (In reality a delegation to indi- viduals or corporations of an exclusive right to do certain things for the rest of the com- munity). It is unnecessary to dwell upon the advantages of the ownership of such special rights and privileges. The purpose of the illustrations is not to call attention to the right or wrong of the granting of these special privileges, but to make obvious the fact that trade is not an "exchange of goods for goods." It might be argued that it does not matter whether the manufacturer is in this country or abroad, that he will, in any event, invest 19 THE MARSELITE his excess profits in those things which are not goods. But if he is a manufacturer re- siding in this country, the wealth acquired remains in the country, and this is one of the chief contentions of the Protectionists — that a tariff tends to increase the wealth of the community. Also, as by the operation of a Protective Tariff the home manufac- turers and all their employees are obliged to buy the produce of the home farmer, they are consumers who will the more certainly make a local market, and the man who holds the mortgage will be compelled, in a measure, to take farm products for his claim. Land has doubled in value in the United States within the last 10 years, and if we had exchanged "land for goods" with European manufacturers, they would be receiving in the form of rent just double the value of the goods for which we gave them land — under the mistaken idea that we were trading "goods for goods." If this condition was to maintain for any great length of time, say several decades, we THE MARSELITE would be paying the foreign manufacturer for the privilege of living in this country — paying him in produce, if we could give it to him cheaper than he could get it in the world's markets, — otherwise with money, with which he could buy more land. We would soon be doing a fine export business, for a large part of which the only return we received would be the privilege of living on the land, which may be a good idea, but the Marselite " guessed not." PROTECTION NOT CAUSE OF EXCESSIVE PROFITS The Protectionist claims that a Protective Tariff which permits of goods being manu- factured in this country — while it may temporarily raise the price of the goods — will, ultimately, tend to reduce prices, by reason of the fact that competition will bring profits to a normal condition, so that if prof- its are excessive, capital and labor will gravi- tate toward the industry which yields an excessive profit, and competition will there- THE MARSELITE fore bring prices to the average of profit enjoyed in any industry. This should be the outcome of a Protective Tariff, but if a manufacturer, by reason of the ownership of a patent, or other artificial advantages, is enabled to prevent competition, his profits will be excessive. An analysis of the pro- tected industries which have proved excep- tionally profitable will disclose the fact that the use of patented machinery, appliances or methods, or the ownership of coal or mineral lands, are the chief assets of the manufac- turer receiving an excessive profit, because they give him a monopoly. The limits of this article will not permit the presentation of such an array of facts as will be necessary to carry conviction. The unprejudiced investigator has only to make himself familiar with the facts to be con- vinced. Let us think it over. The Protectionists' strength in the United States has been due largely to the fact that access to land has been easy, hence labor and capital have been high priced, and a pro- tective tariff has been necessary to enable THE MARSELITE wages to be paid and capital to be reim- bursed in sufficient degree to attract labor and capital to the manufacturing pursuits. In older communities where labor is cheap, capital plenty — and consequently cheap — production of articles in which labor and capital are the larger elements can be carried on much more economically than in the United States, or any new country, and in order to build up manufacturing industries a protective tariff is essential in order that capital and labor may be induced to engage in the manufacturing pursuits. Agricultural pursuits are simple, and in a new country the people can easily produce crops. Crops are raised annually, and a small amount of capital and very little skill is necessary to engage in these pursuits. It is a law of economics that we exert our- selves along the lines of least resistance. To engage in manufacturing necessitates the tying up of capital in improvements, more or less permanent, such as buildings, machin- ery, etc., and also the developing of skilled labor. In acquiring skill apprentices are 23 THE MARSELITE obliged to work for small wages, and unless there was an assurance of greater reward to be obtained later, labor would not acquire the necessary skill for the production of manu- factured articles. A FIXED POLICY To get the greatest and fullest benefit of a protective tariff, a country should be so ab- solutely committed to the protective policy that manufacturers would be certain that radical changes would not be made. Agitation and an uncertain policy have two disadvantages which prevent the pro- tective policy from reaching its highest efficiency. First, owners of plants are re- strained from enlarging their facilities for fear that the enterprise may be jeopardized by reduction in duties. Second, new fac- tories are not likely to start up because of the uncertainty of the returns, by reason of possible change in the laws; therefore com- petition among home manufacturers will not operate so effectively to keep down profits 24 THE MARSELITE and give the whole people all the benefits there may be in competition. A country desiring to build up manu- factories should be committed to a protective policy which will assure capital and labor adequate returns. The question of the amount of tariff to be levied is not of great importance, provided it be large enough to insure absolute security and protection to the persons who engage in manufacturing. A country should be ab- solutely committed to a tariff whose sched- ules would not be subject to frequent re- vision. There need be no fear of getting them too high. Be sure that they are high enough and you have accomplished the pur- pose of attracting capital and labor to the manufacturing pursuits. The value of the home market for manu- factured goods and for agricultural products is recognized the world over as the best form of market. Even Great Britain, which is called a Free Trade country, tries to retain the home market, and in the last few years a law has been passed in that country permit- 25 THE MARSELITE ting local manufacturers to use patented machinery and to manufacture patented articles, provided the patented articles or machinery are produced principally in for- eign countries. As is well known, the trad- ing nations recognize the patent laws of other nations, and if a patent is issued in the United States, all that is necessary is to regis- ter this patent in the countries which have reciprocal patent laws. But England, recog- nizing that patented machinery in other countries enabled production in many lines to be carried on cheaper than it could be carried on in Great Britain, passed the law referred to above for the express purpose of retaining the home market ; and many Amer- ican and other foreign manufacturers have established factories in England in order to protect their patents. The greater the manufacturing industries of the country, the better off will be the farmers, or the producer of raw materials such as cotton, wool, beef, hides, food products, etc. If this were a Free Trade country, or the tariff was so low as to permit manufactured 26 THE MARSELITE goods to be freely imported, and we were obliged to dispose of our food stuffs and raw materials in the world's markets, we would be at a decided disadvantage in times of short crops, because we would then be open to the world's competition, or in case of wars, or an interruption of commerce, our indus- tries would be very badly crippled. Aside from the fact that the world's people are not yet far enough advanced to refrain from war (at which times commerce would be interrupted) , it is vastly better to engage as many of your own people in manufactur- ing as it is possible to feed and clothe from your own fields. Manufacturing is not sub- ject to weather conditions, for it is carried on indoors. Rain, snow, or inclement weather of any kind does not interrupt production. If producers of breadstuffs, wool, cotton and other raw materials have a short crop, the producers would receive higher prices, and conditions would be equalized, because those engaged in manufacturing pursuits would be assured of a market, for the reason that the higher prices for a smaller crop would main- 27 THE MARSELITE tain the purchasing power of the agricultural population. This compelling people of a country of varied and ample resources to trade with each other by the application of an import duty maintains a balance that makes for the general good and individual prosperity. Most people will admit that this is a cor- rect arrangement, but your Free Trader ob- jects to interference with trade. He con- tends that trade is a voluntary act and that there should not be interference with it. Trade is not voluntary at all, except that you can volunteer to go without food, clothing or shelter, and starve, freeze or perish from ex- posure, if you elect to do so. If you prefer not to exercise this option of dying, you must trade the things you have, or can produce by your labor, for the things you need. And a wise people will prescribe a method of trad- ing — the how, where and with whom — which seems best for the entire community. THE MARSELITE PROFITS OF IMPORTER The fact that a foreign manufacturer can produce an article for one-half what a home producer can make it doesn't mean that the consumer would get the full benefit. The importer is one of the chief advocates of a low tariff — and the dear fellow isn't after a low tariff for the consumer's benefit. He is like the rest of the earth's people. He will sell just enough below the home manufac- turer to get the trade, and he will not worry himself if the home producer goes out of business and the foreign maker raises his price as a result of less competition. If the importing goes merrily on he will be happy because business is good, and an importer has the same right as the rest of you to be happy over good business. Of course excess profits in his line will in- vite competition, but if he is a true American he will make his money after the custom of the country — "right now — quick " — and take his chance with the competition after he has made his pile. 29 THE MARSELITE International trade is desirable only be- cause we can exchange the things which we produce readily for those which we produce with great difficulty, or not at all. As stated in another part of this article, protected industries will receive no greater margin of profit than other industries, be- cause an excess profit would result in attract- ing capital and labor so that competition would eventually equalize all profits in all industries. That this is not true in this country, or in any other country, is due to the special privileges enjoyed by some manufacturers on account of patented machinery, patented processes, patented articles, or some special advantage which has nothing to do with the tariff. The Marselite's conclusion is, that until exchange is confined to " goods for goods," a Protective Tariff for the United States is desirable and absolutely necessary. Also that every article that can possibly be manufactured in this country should be made here, regardless of the amount of the 30 THE MARSELITE tariff necessary to permit the industry to be carried on profitably. Every person em- ployed in a protected industry is a purchaser of products produced by other members of the protected community; hence every in- dividual in a protected community gets the full benefit of the protection, and the ideal condition in the United States at this time, under our present method of production and exchange, is to have a tariff that would make a home market for every producer in the United States, with a Commission, or some other body of men, authorized to make re- ciprocal arrangements where an exchange of " goods for goods" would be accomplished by such arrangement. The right sort of a schedule, according to the Marselite, would be one sufficiently high to keep out competitive articles, with au- thority vested in some department of gov- ernment to lower, or remove, the duty where a local shortgage or other conditions would make it advisable to take such action. THE MARSELITE TRANSPORTATION A WASTE Exchange is a mode of production, and whenever, in process of exchange, trans- portation can be eliminated or minimized, we make a saving. The farmer is well aware of the advantage of a short haul to market. If his farm is one mile to market, instead of ten miles, he saves much labor, and the advantage appears in the greater value of his acres. If industries were in his home town so that his entire produce was consumed by the local popula- tion, he need not be told what advantage it would be to him. That is easily understood. If a tariff would start a factory in his home town the agriculturist could see the ad- vantage so readily that you would have no difficulty with the schedule. The same principle is true in the nation, and the ad- vantage to the producer of breadstuffs, cat- tle, hides, wool, cotton, etc., is just as obvi- ous. Shipping goods abroad and having other goods shipped here is a complete waste THE MARSELITE of labor. Every mile of travel we save in exchanging goods is a saving of time, labor and money. Where manufactories exist there is population, and population makes land values. Therefore the land owner gets the full benefit of the production which aids in building up factories in his own country. The contention that the foreign or world's market makes the price of the farmers' pro- duce is not true. It is the surplus which each country has to export that governs prices, and if the United States uses all, or nearly all, its own produce the surplus for shipment will aid in determining the price abroad; so that we may well say that the home market governs the foreign price. The compensation which labor receives is termed " wages." The amount of wage a worker receives is governed by supply and demand, the same as commodities. The amount of compensation received, and the number of hours necessary to secure the wage, will depend upon the number of people seeking employment, and the employment which is to be had. 33 THE MARSELITE The more manufactories there are in a country, the greater will be the demand for employees, and consequently higher wages will be paid. If the manufacturer of shoes, hose, clothes, hats, nails, carpets, underwear, gloves, plows, reapers, furniture, watches, ma- chinery, or anything else, is making more money than you are, there is nothing to pre- vent you from making the same things and getting some of that extra profit. If you cannot make the goods and get some of that surplus money he is supposed to be getting, either he is smarter than you are, or he has some advantage you don't have. In either case the remedy is in your own hands — but it doesn't consist in taking a whack at the tariff. Perhaps there is another problem to solve, which explains extra profits. The Marselite thinks there is — which is another subject. 34 LIGHT ON EXCESSIVE PROFITS When you have proved that exchange is not a trading of goods for goods, and you have also proved that a protective tariff does not give any individual or corporation an advantage, because every one is free to manufacture the protected goods, you have not satisfied the skilled gentleman who works in a shop that his employer isn't get- ting rich and powerful. Neither have you satisfied the gentleman who raises cotton, corn, wheat, cattle, hogs, etc., that the manufacturer has no advantage over him. Your theory may appear all right, but the facts seem to be against you. If we have a theory that is correct it must work in practice, because a theory is simply an explanation of the relation of facts. What is the trouble with our theory? The Marselite points out that we do not take into consideration all the facts. The big fact that we overlook is that every one is not free to engage in the making THE MARSELITE of articles protected by the tariff. Or, more correctly stated, every one cannot en- gage in their manufacture under the same conditions. Most every protected industry is carried on under an additional protection which prevents home competition. This protec- tion is the possession of a right to make patented articles, the right to use patented machinery or patented processes. Here we have an explanation of excess profits: A protective tariff, preventing foreign competition, and the patent laws, prevent- ing home competition. 36 TRUSTS AND PATENTS The Marselite Suggests a Plan for Preventing Trusts, There- by Removing the Necessity of Regulation The method of prevention of trusts was set forth by Robert De Mars, and his views are herewith presented. It may be broadly stated that a trust or combination of manufacturers or producers of any kind is only possible where some exclusive right or privilege is enjoyed. Competition is the surest regulation, and to obtain freedom of competition all special rights and privileges should be withdrawn. Nearly every trust or combination of manufacturers or producers of any kind is based upon one of three privileges which give a monopoly. One of these, and of greatest importance, in the opinion of the Marselite, is the ownership of patents. If the Earth's people would immediately change the patent laws nearly every great trust in the United States would be abol- ished. 37 THE MARSELITE One of the most surprising things about the laws governing production among the Earth's people is the universal adoption by- all industrial countries of the most clumsy, unjust and senseless law, known as the " patent right law." The original object of the patent right law was to stimulate invention by granting the inventor the exclusive right to manu- facture, sell or use the product of his brain, thereby, in theory, benefiting the commu- nity by making it possible to produce more cheaply and more effectively by granting special rewards to those who devote their time to inventions or discoveries. The patent law, as it at present exists, fosters monopolies and assists in building up large fortunes which become a menace to the community. They manage differently in Mars. Instead of granting the exclusive right to the inventor — who can dispose of this right in such manner and for such sum as he sees fit — the inventor should be rewarded by being paid a royalty, and every one should be permitted to use the patented 38 THE MARSELITE article by payment of royalty to the inven- tor. This would insure greater reward to the inventor, and would give, at once, the benefit of inventions to the entire commu- nity. As matters now stand with the Earth's people, under the vicious patent laws, immense numbers of inventions are unavailable to the public because they are purchased by owners of other inventions and shelved, so that they will not come in competition with prior patents. Inventors, as a rule, spend considerable time and usually all their money in perfect- ing their inventions. They are then at the mercy of those who have capital enough to supply their needs. Thus the patent laws, as at present existing, do not serve to proper- ly reward the inventor, nor to benefit the community by giving it the inventions as they are developed. This seems so self-evident a fact that it is surprising a community as intelligent as that of the United States will permit such vicious laws to exist upon the statute books. So said the Marselite. Let us think it over. 39 THE MARSELITE It will be found, upon analysis, that most of the vast fortunes in the United States are based upon the exclusive right to man- ufacture or do certain things in certain ways. An immediate change in the patent laws would be the greatest trust buster. REWARD INVENTOR AND BENEFIT PUBLIC Every patent that is granted should be placed before the people with drawings or models filed in the office of the government officials in various parts of the country, so that those desiring to utilize them would have ready access. An inventor would be protected in his inventions by having the royalty paid over to the Internal Revenue Department, the same as excise taxes are now paid. The same machinery of government could handle the royalties. Stamps could be affixed to the patented articles, or government marks placed upon them, so that the inventor would get the full benefit. The expense of collect- 40 THE MARSELITE ing could be deducted from the amount paid over to the patentee. Thus every invention would be immedi- ately made available to the public, and mon- opoly would be prevented and manufacturing would be carried on in nearly every com- munity. Under this method, wherever it is possible to produce an article advantage- ously it would be produced. Small manu- facturers and individual makers would start up all over the country. This would tend to prevent congestion in the larger centers. This is a reform easy to bring about. It would necessitate no radical change in our present laws, nor disturb business to any extent. This sort of a patent law could be made applicable to all future patents granted by the Government. A provision could also be made in such a law so that manufac- turers who now own patents could come in under the new order of things by filing a declaration that their present patents were available to any firm or individual who would pay them the proper royalty. THE MARSELITE The amount of royalty to be paid for the privilege of manufacturing patented articles should be determined by the Government. This royalty, of course, would vary greatly, but it is easy to fix such a royalty for each article as would properly reward the inven- tor and at the same time give the public the full benefit of the invention. AMOUNT OF REWARD Under the present laws of the United States a patent is granted for a fixed term of years. There is a very grave question as to whether or not this is wise. Perhaps it would be better to grant a patent to the in- ventor under the provision that when a cer- tain sum of money had been secured from the patent it then became available to every- body without the payment of royalty. It would seem that a compensation of $100,000 to $200,000 would be an adequate return. It is true that there are vast dif- ferences to the public in the value of patents, but it is not wise to have any legislation THE MARSELITE which will permit any individual or firm to secure large fortunes from an exclusive right or privilege. It must always be borne in mind that the object in granting a patent is to stimulate invention by properly rewarding the inven- tor, not to give manufacturers a special privi- lege. It is for a country to say what is proper reward. This, however, is a matter of detail. A broad, undeniable fact is that it is unwise to create monopolies by giving exclusive right to manufacture a patented article, use pat- ented machinery or appliances. We constantly hear the argument of the Socialists that machinery displaces men by the machine doing from four to five times as much as one individual can do. This is no argument for Socialism, but it is a convin- cing argument that everybody should be able to utilize a patented machine upon the same terms and under the same conditions. The whole trouble with the Patent Laws, as at present applied, is that they create monop- olies and foster combinations, work to the 43 THE MARSELITE disadvantage of the people at large, and do not serve to properly reward the inventor. RELIEVE CONGESTION OF CITIES Where skilled workmen are now engaged in working for great manufacturing com- panies they could start their own little shops and secure such reward as their skill and in- dustry would entitle them to receive. Whence would come the opposition to such a law? It could only come from in- dividuals or corporations who desired to have a " cinch" and secure greater benefits than their fellow-man. Under the present system, combinations form for the control of products, because it tends toward economy in production, and also insures greater profits. No one should blame the owner of a pat- ent, or the owner of a special privilege, for getting everything out of it he can get — that is what we all do. It is not wise to pass laws permitting people to do certain things in certain ways and then attempt to regulate 44 THE MARSELITE them or say how they shall do these certain things. It can be easily seen that under the new laws the thousands of inventions which are being patented every year and bought up by holders of prior patents would be avail- able to the public immediately, and inven- tion would be greatly stimulated and general prosperity increased. There does not seem to be a single sound, reasonable argument against an immediate change in our patent laws which would bring about the throwing open to the public of all inventions as soon as the patents have been granted. As stated before, no new ma- chinery of government, no radical change in administration, need be inaugurated. Perhaps there is something wrong with these views of the Marselite, but they are herewith presented for the consideration of the Earth's people. Let us think it over. 45 THE INVENTOR 1 By IVAN SWIFT A sad man lived in the years of dark And numbered the pains of dearth. He prayed of the gods a sign and spark To lift the burden and light the ark For the sons of his weary earth. He took for his tithe the tangled thorn That falls to our foretime dreams — The hate of the loved and the loaner's scorn, For the sake of the millions yet unborn, And the goal of the right that seems. His kinsmen saw but the waste of dower And warned of the wretched gain. The forge and book and the midnight hour, That knew the man in the secret tower, Could marvel the mortal brain. From a drop of rain and a quoin of steel, A coal and a grain of sand, He fashioned a lamp for a kingdom's weal, And laid man's work on the arc of a wheel And watered a wasted land. A pleader came with a pewter plate, A frock, and a false renown. He gave a toy and a writ of state To feed the pride of a dreamer's mate — And took for his own a crown. 1 A prominent patent attorney testifies that his big reward comes from established corporations as retainers for discourag- ing, defeating on technicality, or purchasing cheaply inventions likely to become competitive. From The Outlook, September 23, 1911. Printed by permission. OBSERVATIONS ON MONEY The Marselite expressed some opinions he had formed on our use of money — or the method of effecting exchanges — and they are in part given here for what they may be worth. A medium of exchange, to effect its pur- pose, must be what the name implies: some- thing which is an order that will be accepted for goods, lands, taxes, or any of the things which we exchange. As every one knows, metal or commodity money is very little used by modern civilized trading people. Checks, drafts, money or- ders, notes and paper of different kinds are used for probably ninety-five per cent of all our transactions. There never need be, and in reality there never is, any real scarcity of the medium of exchange. When there appears to be a shortage it is due to two primary causes. First, an inability to find a market for that which we have to exchange ; second, the fear 47 THE MARSELITE that we will be unable to secure the one kind of medium which every one will accept (commodity money or its equivalent, gov- ernment notes or bank notes based on gov- ernment security). This second cause creates a scarcity for the reason that a large part of this form of money is withdrawn from circulation and is hoarded, either to be quickly available to meet wants, or for the purpose of getting a premium for its use. As to the first cause, which creates an apparent scarcity of money, the inability to find a market for that which we have to ex- change: Our Marselite friend pointed out the fact, which we all know, that over one- half of the Earth's people never have any- thing to exchange except labor or services, and if production stops or is very much re- stricted for even a short time, want and an apparent scarcity of money are the first symptoms to manifest themselves. This scarcity of money is not felt alone by those who have only services to exchange, but also by the merchants who have stocks 4» THE MARSELITE of goods which they cannot exchange be- cause the workers are unable to secure the money with which to buy them; this in turn affects the wholesaler, and then the manu- facturer, who, not having an outlet for his goods, ceases to make them. His former employees are then confronted with the in- ability to exchange their services, which is manifested in a scarcity of money. Here we have a condition where there may be plenty of goods of every kind, plenty of breadstuffs and everything to supply our wants, and still we have what appears to be "hard times," or an inability to get money. THE BANKER Now as to the banker — where does he come in? He is supposed to be a dealer in money, and when money is needed we all turn to him as the one to supply with the needed medium of exchange, the merchant, the manufacturer, and all who have security to offer. It develops that the banker is not willing 49 THE MARSELITE to loan money on even the best stocks of goods, or the highest class of securities, rep- resenting goods or other forms of wealth. He is frequently criticised for the reason that he is considered a money lender, whereas he is, as a matter of fact, a clearing-house or broker in credits, for facilitating ex- change. Also, he is a custodian of money — other peoples. If you have a stock of shoes worth, say $6,000.00, which you have clear of debts, and desire $2,000.00 to maintain your store, pay rent and employees, take care of your own living expenses and replenish your stock, you will have no difficulty in having placed to your credit $2,000.00 on the books of the bank, offset by a charge of $2,000.00 in the form of a 90-day note, provided you can show the banker that you will be able to exchange $2,000.00 worth of shoes to con- sumers and deposit the proceeds before the 90 days are up. These deposits need not consist of one cent of cash, nor need you ever draw a dollar of cash from the bank on the $2,000.00 loan. It is, in fact, So THE MARSELITE nearly always an exchange of checks, drafts, etc. If, however, in seeking a credit at the bank it develops that your business is not good; that you are not at all likely to ex- change sufficient goods to offset the credit of $2,000.00, the banker is not disposed to ex- tend the credit. Then a condition confronts you of an apparent shortage of money. It isn't a shortage of money. It is shrinkage of credit, due to the restriction of exchanges. The modern banker is not a money lender. Under U. S. banking laws the banker is required to have a certain amount of cash on hand in relation to his volume of business, particularly a percentage of his deposits. So that in times of sudden need, panics, etc., he is not in a position to extend credits on account of inability to maintain his cash reserve. Everybody is scrambling for the cash and the banker is justified in refusing to pay out cash to those who are going to hoard it and thereby withdraw it from use. This may seem unfair but the banker is THE MARSELITE a custodian of money and must take care of the interests of all the depositors. In the opinion of the Marselite, it is not any shortage of money that causes a re- striction of exchange, dull business, panics, etc.; but it is the opposite condition — a stoppage or restriction of exchange which causes an apparent deficiency of the medium of exchange, which is principally — almost wholly — credit money, checks, drafts, money orders, notes, etc. SHRINKING OF BUSINESS The next inquiry is, What causes a shrinkage, restriction, or stoppage of ex- changes? The Marselite suggests that there are probably two reasons that bring about the situation. First: Production along lines of over- supply in certain directions. This seems to occur in cycles in the construction of build- ings, both residence and business. This form of production may be carried to a point 52 THE MARSELITE where it goes beyond the needs of the people, or, at least, beyond their ability to utilize the buildings to advantage. As building is carried on among the Earth's people, there is no guide to determine when construction has been carried beyond the proper point. Buildings, being fixed improvements on land, and not quickly consumed, as are other products of labor, represent production along lines that, when carried beyond present needs, means a stoppage or restriction of production in the building trades for a period of years — the period depending on how far beyond present needs construction has gone. The reason over-production in buildings is more likely to occur than in other lines is twofold: First, there is no safe guide, as there is in other lines, because an excess of hats, shoes, clothes, underwear, hose, and all manufactured and quickly consumed articles is apparent each season, as is also the case with agricultural products, so that there is always a barometer which regulates — at least, to a degree of approximate safety. This is not the case with buildings. 53 THE MARSELITE The second reason why the production of buildings is carried beyond present needs is the temptation presented in the desire to get the benefit of the increase in land values. The calculated profit from the capital put in the building is supplemented by the ex- pected gain in the "unearned increment " in the land value. Also homeseekers, seeing land constantly increasing in value — as it does during a rapid building period — go in debt to secure a home, and build beyond actual need or ability to pay. When, by reason of inability to rent or sell buildings at a profit, the excess of build- ings becomes apparent, the men engaged in the building trades are out of employment; the shopmen, brick-makers, and all who are engaged in producing building materials are out of work. All these are obliged to re- strict their consumption. That in turn throws those who supplied their needs out of work, and we have all along the line a cessation of exchange — an apparent short- age of money, the medium of exchange; when that is not the trouble at all. THE MARSELITE The second reason why there is a restric- tion or stoppage in exchange is due to the fact that over half of the people have noth- ing to exchange but their labor, and when the opportunity to exchange labor for money ceases these wage-earners are unable to con- sume in the usual normal way the goods already manufactured. The remedy for this state of things is such a distribution of wealth as would permit all, or a very large proportion, of the Earth's people to always have goods, wealth or money on hand which they could exchange for other goods. How to bring about this condition is a problem. The great differ- ences in capacities, judgment and habits of the Earth's people in their present state of development make a problem of this kind very difficult. The nearest to a solution of this last prob- lem, which is in reality an outgrowth of the first, is to so adjust production that there would be a uniform supply of commodities, and particularly a means of determining when the needs for buildings, railroads, and THE MARSELITE all " fixed improvements" were being prop- erly met without a very material over- supply. EMERGENCY MONEY That there arises sudden need for cur- rency is admitted and the pledging of exchangeable forms of wealth to the govern- ment or to bankers under government supervision and the issuing of money on such security would tend to allay fear and restore confidence. But this does not help in other than a small degree the great mass of the people who have only their labor to exchange. Perhaps a method of utilizing that labor and paying for it with money direct to the workers could be devised and the product of that labor become the security for an issue of money for that purpose. There are difficulties, owing to our form of government — City, County, State and Nation have functions which prevent action in this direction being easily taken. But 56 THE MARSELITE the suggestion was made and it is here given. Let us think it over. The problem of money resolves itself into one of production and exchange, and if we keep them in action the money problem solves itself. Money does not control wealth. Wealth controls money — some forms of wealth more than others — but wealth always con- trols. These are some of the Marselite's views on money. Let us think them over. 57 EXPORTS AND IMPORTS EXPORTS. Merchandise and Specie Exported prom the United States During the Fiscal Year Ended June 30, 1910. Articles. Quantities. Values. Domeatic Merchandise. 36,802,374 1,685,474 46,679,876 9.040,987 2.953,633 10,413,439 51,445 3,206,708,226 55,007 14,635,075 10,589.254 1,292,405,682 2,216,713 168,903,985 196,98*2,550 $28,124,033 666,937 17,447,735 7,088,994 Aluminum and Manufactures of. . Books, Maps, Engravings, and Brass, and Manufactures of Breadstuffs: Corn bush. " Oats bush. " Wheat bush. " Wheat Flour. . . .bbls. Cars, Carriages, and other Vehicles 4,355,561 25.427,993 794,367 47,806,598 47.621,467 20,630,859 Chemicals, Drugs, Dyes and Medi- 21,415,935 Clocks and Watches and Parts of. Coal Anthracite tons " Bituminous tons Copper Ore tons a Manufactures of Cotton, Unmanufactured lbs. 2,588,938 14,585,632 25,926,914 1,304,887 88.004,397 450.447,243 33,397.097 901,537 8,700.640 6.849.250 9.652.088 18,885,654 14,501,635 Earthen Stone, and China Ware. . Fibres, Vegetable, and Textile Grasses, Manufactures of Fish Fruits and Nuts 2,805,401 3,415,220 1,070,907 1,738,216 2,062,140 10.175,634 12,535,643 179,133,186 52.646.755 951,183 Hay tons Hides and Skins lbs. Hops lbs. India Rubber Manufactures Instruments for Scientific Purposes Iron and Steel, Manufactures of . . Leather and Manufactures of Marble, Stone and Manufactures of 1,447,989 3,182,343 18,681,962 Nickel, Nickel Oxide and Matts. . . Oil Cake, Oil Cake Meal lbs. Oils, Animal galls. " Mineral Crude galls. " Mineral, Refined or Manuf 'd " Vegetable 4,532.897 18,562,379 903,001 5,277.181 93,813.031 16,479,301 Paints, Pigments and Colors Paper, and Manufactures of ParafBne, Parafflne Wax lbs. 4,726,565 8,994,277 7.886.359 S8 THE MARSELITE EXPORTS— Conf d . Articles. Quantities. Values. Domestic Merchandise. Provisions, Beef Products lbs. Hog Products lbs. ** Oleomargarine Dairy Products Seeds, Clover lbs. All Other 156,786,067 451,646,645 129,510.307 6,'977,685 1,637,630 33,534,570 14,962,662 126,507,022 357,196,074 $13,975,519 91,415,894 14.655,052 2,250,421 832,676 2,052,742 3,620,546 Spirits, Distilled proof galls. 1.978.006 1,274,773 Molasses, and Syrup galls. Sugar lbs. Tobacco, Unmanufactured. ... lbs. " Manufactures of Vegetables 2,474,976 5,398,060 38,115,386 4,803,101 4,207,319 Wood and Manufactures of Wool and Manufactures of 78,813,803 2,369,283 Total Exports, Domestic Exports, Foreign Merchandise. . 1,710,083,998 34,900,722 Total Exports, Domestic & For'n 1.744,984,720 Species, Gold '• Silver , 118,563,215 55,286,861 Total Expts., Domestic & F'rgn 1,918,834,796 IMPORTS. Merchandise and Specie Imported Into the United States During the Fiscal Year Ended June 30, 1910. Articles. Quantities. Values. Merchandise. 163,101,786 1,624,791 108,668,070 871,469,516 $ 7,839.670 21,088,720 6,033,075 3,111,872 602,833 88,790,328 Books, Maps, Engravings, etc Bristles Cement, Portland, Hydraulic. . lbs. Chemicals, Drugs, Dyes and Med- Clocks and Watches, and Part3 of Coal, Bituminous tons Cocoa Crude, and Shells of . . . . lbs. Coffee lbs. Copper and Manufactures of (not 2,571,254 4,460,919 11,376,061 69,194,353 30,887,841 Cork Wood, and Manufactures of . 4,771,391 59 THE MARSELITE IMPORTS— Cont'd. Quantities. Merchandise. Cotton, Unmanufactured 1 " Manufactures of Earthen, Stone and China Ware Feathers, Flowers, etc Fertilizers Fibres, Vegetable.Unmanufactured " Vegetable Manufactures of Fruits and Nuts Furs, and Manufactures of Glass and Glassware Hair, Unmanufactured Hats, Bonnets and Materials for . Hides and Skins, other than Fur lbs India Rubber and Gutta-Percha Crude lbs Iron and Steel, and Manufactures of Jewelry and Precious Stones. . . Lead, Ore and Base Bullion. . ..lbs. Leather, and Manufactures of Malt Liquors galls Meats and Dairy Products Oils 86,037,691 Paper, and Manufactures of. " Stock, Crude , Rice Silk, Unmanufactured , Manufactures of , Spirits, Distilled. Sugar Tea. .lbs. .lbs. Tin, in Bars, Blocks or Pigs Tobacco, Unmanufactured. . . . lbs. Manufactures of Toys Vegetables Wines Wood, and Manufactures of Wool, Unmanufactured lbs Manufactures of 608,619,028 192,195,390 202,166,987 7.312,748 225,400,545 ,088,438,672 85,626,370 101,134,508 46,838,330 263,939,584 $15,816,138 66,473,143 11,021,126 11,992,053 8,371,883 32,418,839 57,624,245 37,423,827 26,597,644 6,553,754 6,019,476 7,950,530 112,247,836 106,861,496 38,502,457 50,959,129 3.643,321 16,865,937 3,283,953 11,043,454 24,299,589 11,503,680 5,206,877 4,361,237 67,115,177 32,888,459 3,483,459 7,112,887 106,075,889 13,671,946 30,869,532 27,751,279 4,082,583 6,585,781 8,273,371 13,007,293 54,422,504 51,220,844 23,532,175 Total Merchandise*. 1,557,819,988 Gold. Silver. Total Imports. 43,339,905 45,217,194 1,646,377,087 ♦Including all other articles than those enumerated. 6o THE MARSELITE Value of Imports Into and Exports from the United States of Merchandise by Countries, Year Ended June 30, 1910. Countries. Imports. Exports. Austria-Hungary Azores and Madeira Islands. . . §17,408,910 86,875 40,059,281 2,198,334 132,363,346 168,806,23V 9,494 2,643,005 140,231 49.86S.367 16,351 31,713,766 6,551,985 6,507,733 36,181 16,196,154 1,067,008 18,453,278 6,830,477 25,209,159 8,689,769 271,029,772 591,523 1,066,409 95,128,310 1,299,688 3,641,298 1,832,324 2,012,225 1,321,767 2,229,189 1,176,393 58,795,943 12,655 11,154,683 122,528,037 403,926 346,589 43,232 790,579 2,462,716 33,463,264 189 108,154,491 20,921,326 7,485,141 2,859,714 $14,962,731 184,234 41,116,585 13,644 903 117,627 466 249,555,926 228,019 429,670 3,106 53,467 053 Greenland, Iceland, etc Italy 303,009 84,937,878 5,949,330 3,223 855 479,364 16,789 930 4,273 18.964,403 5,991,896 756.770 1,613,168 Great Britain and Ireland. . . . Bermuda 505,552,871 1,323,959 1,211,852 British North America: Newfoundland and Labrador Central American States: 215,990,021 4,074,802 3,050,510 1,959,246 1,605,493 1,690,792 20,596,371 1,316,957 58,193,704 West Indies: British 39,246 11,277,963 Cuba 62,858,758 749,174 Dutch 658,146 1,318,224 Haiti 4,498,449 3,106,402 40,694,941 Bolivia 603,721 22 897,890 Chile 8,304,246 3,979,886 2,215,951 6i THE MARSELITE Value of Imports and Exports, etc. — Cont'd. Countries. Imports. Exports. Gulanas: British $567,793 925,782 21,171 29,170 7,621,497 7,413.896 6,701,352 2,068,220 29,990,370 36,146 6,442 1,244,360 20,610 70,748,613 10,651,935 '2,333,231 66,398,761 20,176 683,371 1,181,058 125,882 8,514,132 3,495 14,806,764 4,168,125 603,418 38,270 17,317,897 227,108 2,178,174 803,612 125,958 726,970 433,098 212 6,626 475,215 239,996 i2,'l'76.108 96,662 $1,884,331 685,889 300,273 61,142 4,548,053 4,272,145 2,797,210 531,784 16.320,612 3,492 65,030 British China 345,551 235,768 9,495,016 2,241,225 174,882 6,467,165 21,959,310 442,066 509,178 1,039,881 286,200 Turkey in Asia 744,504 149 27.696,557 5,577,088 544,436 116,374 16,832,645 2,241,448 9,614,406 601,133 284,749 1,275,392 200,465 84,469 7,731 60,373 3,138,775 22,897 Turkey in Africa — Egypt. . . . Tripoli 982,845 14,232 Total $1,557,819,988 $1,744,984,720 62 ABOUT THE PLANET MARS Mars' mean distance from the sun is 141,000,000 miles; the Earth's is 92,000,000 miles. Mars' diameter is 4,222 miles; the Earth's 7,918 miles. Mars revolves on its axis in 24 hours 37 minutes and 22 seconds; the Earth, in 23 hours 56 minutes and 4 seconds; Mars' day is therefore about 30 minutes longer than the Earth's. Mars revolves around the sun in 687 days, in round numbers; the Earth, in 365 days, so that Mars' year is twice as long as Earth's, less 43 days. Mars has seasons the same as the Earth, but Mars' seasons are nearly twice as long as the Earth's. Mars has two satellites or moons. One of them revolves around Mars in about eight hours and is very close to the planet, 5,850 miles; the other journeys around the globe in about thirty hours, and it is also close to Mars, 14,650 miles. Earth's moon is over 238,000 miles away from the Earth, about which it revolves every 27 days and 8 hours. Mars has no mountains. Mars has over 400 canals, over 50 of which are double. Mars has no oceans, as we know of oceans on Earth, and has little moisture as compared with the Earth. Mars is much older than Earth, probably many millions of years. Mars' atmosphere is much lighter than Earth's, and of less depth. 63 f 1 " 1 Above illustrations show the relative difference in size between the Planet Mars and the Earth 64 DEC 4 , 1911 One copy del. to Cat. Div. DEC 4 1»l! LIBRARY OF CONGRESS 013 722 313 2 # I'ijJjj!