'. ' HX E2. A PLAIN I ANALYSIS OF SOCIALISM BY L. K EGCLES A< hor of "The 1 impct \'oice From the Throne." (Vol. II) PUBi.i 1 BY THE AUTHOR PULLMAN, WASH. PI ICE >25 CENTS Postage (extra) 5 jpies. $2.00; '5 copies, $4.50; \ > Plus shipping charges >Dies. $8.00: copies. $15.00 ; J IN MEMORIAM JESSICA PEIXOTTO 1864-1941 VOL. I A PLAIN ANALYSIS OF SOCIALISM BY L. F. ECCLES Author of "The Trumpet Voice From the Throne." (Vol. II) PUBLISHED BY THE AUTHOR PULLMAN, WASH. PRICE 25 CENTS Postage (extra) 5 10 copies, $2.00; 25 copies, $4.50; ) 50 cooies. $8.00 : 100 copies, $15.00 ; / PIu Copyright. 1907, by L. F. ECCLES THE CO-OPERATIVE PRESS, 15 SPRUCE ST.. NEW YORK 119 Preface My Dear Reader: You who are busy, whose energies have been taxed heavily by much work, manual or mental, and perhaps more heavily by that interminable worry that arises from a feeling of uncertainty; or you who for want of opportunity, inclination or any other cause, have not become familiar with the history of the past nor studied carefully the philosophy of human events, it is for you especially that these pages are intended and to you that they are addressed. It is needless to say that this work is not intended as a great literary production ; for its perusal will easily disclose to a critic the fact that it is not. And if the style should seem abrupt or coarse to those of refined literary taste, I trust that they will bear with and excuse it ; for, above all things, I desire to be thoroughly understood by all. To this end there are two things necessary : First, that I write plainly ; and secondly, that you read carefully. How well I have done my part you may judge. Will you do your part? And, if, from any cause you fail to get the full meaning, will you do yourself and me the justice to re-read carefully? A certain order has been pursued, so that a thorough understanding of any por- tion depends largely on a knowledge of what has gone before. I have not hesitated to use the pronouns "I" or "me," as the case may be, and, to relieve the monotony, have frequently called in the editorial "we." Every trade has its shop talk, which is easily understood by all those of that trade, but Greek to those without. Liter- ary men have theirs. I have been careful to avoid indulging" in the use of literary shop talk. My purpose in the present work is to present a brief, plain, simple yet full, comprehensive and philosophical view of the whole subject in its essential features. While I desire to be brief, I do not wish to sacrifice clearness for brevity, and so, in dealing with topics that seemed important, I have not hesitated to introduce elaborate illustration. If I have given a greater prominence to the moral phase of the subject than most Socialist writers, I have no apologies to make, for I believe that notwithstanding the tendency of capitalism to uproot, obliterate and destroy it. man still has a conscience, to which the message of Socialism, if properly presented, will appeal. I have quoted freely from other authors wherever I found it convenient, because my object is M151389 4 PREFACE not so much to bring forth that which is new as to present a complete case that cannot be upset. I hope this work may not prove unworthy the consider- ation of the learned; but my one fixed and settled purpose has been to present to the great plain people, of whom I am one, a book which, when one has read, he will be ready to say, "I am a socialist." Or, if he is a conservative, doubting Thomas, will at least comprehend the Socialist idea so thor- oughly, that if he is still hesitating and doubting when the majority vote to inaugurate the Socialistic state, he will be ready to exclaim, "My shoulder to the wheel ! I voted against Socialism because I feared to try the experiment; but it is right in principle, and now, since it is to be tried, I desire to see it succeed; I have as much interest in its success as any one; and if it should fail I am determined that it shall be through no faul-t of mine." When you get the Socialist idea in all its fullness, there will come with it the Socialist ideal in all its beauty and at- tractiveness. You may cast it from you as chimerical, vis- ionary and too good to think of; you may trample it under your feet ; but it will rise and climb, and keep climbing till it sits enthroned, the ruling impulse of your life. I have almost entirely avoided statistics. Books of these are easily obtained by those who desire to consult them. My object is not so much to tell the reader something he does not already know, as to reason with him upon information that he already has, or may easily obtain. This is intended to be a book of reasons rather than a book of facts. THE AUTHOR. IMPORTANT Unless specially arranged otherwise, all orders for books should be sent to L. F. ECCLES, PULLMAN. WASHINGTON. TABLE OF CONTENTS. I. INTRODUCTION. Fundamental Principles Selfish, Unselfish. Primitive Forms Savagery, Slavery, Serfdom, Capitalism 7 II. COMMERCE. Primitive Arts. Division of Labor. Exchange. The Competitive System. Competition. Public Conscience.. 12 III. THE TRUST. The Great Comet. The Swallowing Process. Shameful Misuse of Wealth (Moffett) 20 IV. REVIEW OF PRESENT CONDITIONS. The Bright Side. Machinery. Log Cabin Days and Methods. The Dark Page. Panics 24 V. REVIEW OF PRESENT CONDITIONS (Continued). Rule of Concentrated Wealth (Moffett). Evolution of a Young Man. Two Idle Classes. What of the Future? Standard Oil (Lawson) ". 31 VI. GLANCING BACKWARD AND FORWARD. The Finger of God. Comparison of Injuries of Exploita- tion. Society Ripe for a Change. No Turning Back. Danger of Anarchy. In the Niagara River 42 VII. ORIGIN AND DEFINITIONS OF SOCIALISM. Frances E. Willard on Socialism. Prof. Ely's Definition and Arrangement. What is Not Socialism Anarchism, Communism, Unionism 47 VIII. SOCIAL REFORM. Social Reform in England.-^-Social Reform in New Zea- land. Prof. Ely's Program of Social Reform. The Two Principles. Competition, Co-operation. Shortness of "So- cialistic" Legislation. Socialism more practicable than Social Reform. The Hawks and Eagles 58 IX. THE PRACTICABILITY OF SOCIALISM. Scope of the Subject. Importance. Intricacy. Necessity for Patience 72 X. JUSTICE AND BENEVOLENCE OF SOCIALISM. Misapprehension. Sacredness of Property Rights as an Educator of Conscience. People better than their Prin- ciples. "Vested Rights." Discussion of Fundamental Moral Principles. A Great Emergency 73 XL ACQUIRING POSSESSION. Taking Possession. Four Methods. Completeness of Plutocracy's Title. Confiscation. Gradual Process vs. Rapid Movement. "Muck Rake Speech." Proposal to Abolish Constitutions. Basis of Right of Taxation. "Great Unrest." 83 XII. LAW, ORDER AND ORGANIZATION. Cross Action Produces Anarchy, Parallel Action, Har- mony. Competition Anarchistic, Co-operation Concerted Action. Development of Organization. Public Owner-- ship Increased Exchange of Services produces Necessity for Industrial Organization. Blocking the Road to Pro- press. Society a Machine. Depending on the Politician as a Specialist ' 90 XIIL THE SOCIALIST PROGRAM. Socialism with the Old Method of Organization. The More Practicable New Method. Eradication of Local 6 CONTENTS OF CHAPTERS Self Interests. Organization from the Bottom Upward (Gronlund), (Vail). Waste of Capitalism and Economies of Socialism. The New Standard Moral Excellence in- " stead of Financial Excellence 102 XIV. DISTRIBUTION OF OCCUPATIONS AND POPU- LATIONS. Bellamy's Plan.. Craving for Distinction. Elimination of the Great Leader. Advantages of Equal Wages. Dis- tnbution of Population. The Race Question. Universal Peace 113 XV. INDUSTRIAL ORGANIZATION. Raw Material. Mining. Money. Lumbering and Fish- ing. Manufacture. Machinery. Furniture and Clothing. Food. Water, Light and Heat. Transportation, etc. Decadence of the Great City. Increased Use of Railways. Distribution 122 XVI. AGRICULTURE. Inclination of the Farmer. Individualistic Methods. Large Scale Methods. Bonanza Farming. Electricity and Future Machinery. Science. Individualistic Waste and Socialistic Savings. 133 XVII. PHYSICAL CULTURE UNDER SOCIALISM. Physical Development and Health. Medical Practice Now, and Then 140 XVIII. SOCIAL AND INTELLECTUAL CULTURE UNDER SOCIALISM. The Happy Mean the Village. Stimulating Effects of Great Movements. 'Discovery of America. The Reforma- tion. The American Declaration of Independence. Abo- lition of Slavery. "No Incentive." Inventive Genius (Dewy). Removal of Trammels from Educational Field. Vanity. Sweat Shop Methods 142 XIX. MpRAL INFLUENCES UNDER SOCIALISM. Socialism a Moral Movement. Present Demoralizing Effects of Taxation (Ely). Subsidized Vices The Liquor Traffic, The Social Evil. The Family (Vail). Religion Under Socialism 152 XX. THE CLASS STRUGGLE. The Two Great Parties, Capital and Labor. Counter Claims and Charges. The Right Side. Whole Contro- versy Product of Capitalism; hence not Vital to Socialism. Environment of Each Party. Crimes charged against Each. Labor Troubles in the West. Socialism the Issue. 158 XXI. GOVERNMENTAL ALIGNMENT WITH WEALTH. Sectional Views. Justice McKenna's Opinion in Moyer- Haywood Case. Goebel. Julius Beiser. "Corporations Enthroned." Against a Snag. President Roosevelt as a leader of the Hawks. Main Issue Socialism. Fighting Tactics. Roosevelt's Coming Prophecy 175 XXII. MISCELLANEOUS. Selected Miscellanies. The Voice of Toil. Revolutions. Capitalism and Your Daughter. Mr. Bryan and Immoral Money. Gov. Altgeld's Optimism. Miscellaneous Ob- servat ; ons of the Author. Equality Through Capitalistic Glasses. The Red Flag. Mother's Wish. Around the Square. The Test of a True Socialist. How to Destroy Socialism . 186 A Plain Analysis of Socialism CHAPTER I. INTRODUCTION Fundamental Principles. There are two classes of principles that underlie, or motives that prompt human action. These are, 1. Selfish principles or motives those which appeal to each one's individual self interest. 2. Unselfish or moral principles those which prompt to the consideration of the welfare of others and to the choice of certain lines of action because it is right. First: Selfish Principle. Principle i. Generally, each one strives to get possession of as much as possible of the earth's resources and the prod- ucts which labor extracts therefrom. Corollary : There is nothing so heinous but that someone will be ready to do it, provided the reward is sufficient. Second : Moral or Unselfish Principles. Principle 2. (Justice) All men have an equal inherent right to ownership of the earth and its resources. Corollary: All men should have an equal opportunity to use the earth's resources. Principle 3. (Justice) Having this equal opportunity, wealth belongs to those who produce it : or, The producer of wealth is entitled to the full product of his toil. Principle 4. (Benevolence) Human welfare is the high- est basis of right. So far, in the history of the human race, the selfish prin- ciple is the one which has generally prompted Man's action. And yet he has all along been more or less susceptible to moral influences. Since the day in which God breathed into man's nostrils the breath of life (spiritual life) there has probably not been a tribe so wild and so low as not to be influenced in some small degree by moral principles. No doubt the influence was small, very small at times, and even now, with all the boasted enlightenment of society, and with all the cases that may be cited of individuals and classes of individuals who have heroically sacrificed self on the altar 8 ANALYSIS OF SOCIALISM ot humanity, v/e. are forced to confess that the average of morality is still riot" very high ; that, on the average, man is still influenced more by selfish than by unselfish motives ; and not only so, but this is true even of that class that is regarded as particularly moral. Primitive Forms of Civilization. That man is a progressive being I presume none will deny. Just how far he has progressed and how rapidly may be a queston, but that the most highly civilized nations have risen from a state of barbarism or savagery in the not very far distant past is not questioned. All agree upon the one practical point, which 'alone concerns us in the discussion of the subject in hand, namely, that man has made progress in the past, especially in the recent past, and is making great progress now, and this admitted fact I offer as a reason why he may be expected to make further progress in the future. With reference to the industrial life, there are four dis- tinct stages of civilization known to man: I. Savagery, 2. Slavery, 3. Serfdom, 4. Capitalism. 1. Savagery. The condition of man in the savage state is but little above that of the beast. His wants are few and simple, and may or may not be easily supplied, that depend- ing on the nature of the country in which he lives, as to climate, productions, etc. If he deoends upon fishing or hunt- ing, like the beast of prey, his. living is about as precarious. After a time he comes to desire better conditions. He makes some effort to supply himself and his family with more of the comforts of life. But his advancement is slow. There is one very effectual bar to his progress along the path that leads to civilization, and that is work, labor. There can be no civilization without it, but that is what the savage most dislikes. By and by an idea drops into his head. Instead of killing his captive, as his custom is, he will make him do his work. Thus the savage has taken the first decisive step toward civilization. He has provided a way by which the work may be done, will be done, must be done. Cruel and heartless though he be, he has unwittingly conferred a great blessing upon the human race. He has laid the foundation upon which a future civilization may be built. He has intro- duced human slavery into the world. 2. Slavery. In all the history of the human race man has betrayed a degree of selfishness which has generally been sufficient to prompt him to seek in one way or another to partially or wholly shift the burdens of life to other shoulders INTRODUCTION 9 and to appropriate to his own use the products of others' labors. And yet, after all, human nature is not so bad as it would at first appear, for the reason that circumstances and the institutions of society have generally been such as to wholly or partially hide from man the criminality and hein- ousness of his own actions, so that he is at least partially excusable on the ground that his offence is not entirely willful. In the industrial life of all past civilizations there have been two general classes : the exploiters and the exploited. The exploiters have been generally among the most highly honored and the most enterprising. The institutions and customs of society have been such that they were perhaps, as a rule, unconscious that they were doing otherwise than pursuing their natural and inalienable rights ; and, in fact, many of them are among the best of the people. But just how far man has been excusable in his "inhumanity to man" is not an essential part of this work. What we want par- ticularly to do is to glean such facts as will aid us in shaping our course for the future. The first method by which man appropriated the labor of his fellow man, aside from outright stealing and robbery, was the taking possession of him as a chattel and compelling him to do his work, reducing him to salvery. This was pretty tough on the poor slave, but, as before observed, there can be no civilization without work, and uncivilized man is too indolent to do the work without compulsion, and, there- fore, the institution of chattel slavery in the beginning of civilization has proven a blessing to after generations. Some one has said that every nation that has risen from savagery has climbed out on the backs of slaves. There seems little doubt that among all the great nations of antiquity most of the manual labor was performed by slaves. The institution was regarded even by the philosophers of those times as an unquestionable right. The victorious nations accounted them- selves humane when, instead of killing their captives, they sold them into slavery; and so we find such commercial nations as the Phoenicians hovering like vultures around the great battlefields, always ready to drive a sharp bargain in the living human spoils of victory, which they soM at a profit in other lands. The slave trade seems to have been the chief branch of commerce of those people, and 3 consid- erable portion of that of the Genoese and Venetians during the middle ages. 3. Serfdom. The institution of chattel slavery was con- tinued in many of the warm portions of the earth, but never obtained much foothold in cool climates. Among: the nations io ANALYSIS OF SOCIALISM of central and northern Europe, the care of the slave in providing him with food, clothing and shelter cut off so much of the profit that another plan was resorted to, called serfdom. The serf was simply bound to the soil, so that he could not change about from one locality to another, and yet was left with some degree of liberty, being permitted to go and come for the most part as he pleased ; and being treated somewhat as a human being, instead of as a mere chattel or thing, he was better contented, and became much more trust- worthy than the chattel slave, and was often called into> mili- tary service. He was generally left to shift for himself in the matter of food, clothing and shelter, which added to his own development and relieved the master, who was glad to escape the burden. The serf had little liberty except some of its forms; his condition as to the enjoyments of life did not differ much from that of the chattel slave, except in outward appearancs. This difference, however, counted for much, in that it pro- moted the cultivation of a greater degree of self respect. But serfdom, as well as chattel slavery, could not con- tinue always. Both must give way before changing economic conditions and the increasing light of civilization. So they had to go, and have been replaced by another method of exploitation, the wage system, or capitalism. 4. Capitalism. Definitions. The value of a thing is its worth and is of two kinds, intrinsic and commercial. The intrinsic value is its real worth as indicated by its beneficial utility. The commercial value is its worth in exchange for other things. Wealth consists of all articles that have commercial value. Capital is any portion of wealth which is used in the production of other wealth. The owner of such productive wealth is called a capitalist, the term being generally applied to one who owns a consid- erable portion of it. Money is a standard used in measuring value and is anything that is used as a medium of exchange. Capital requires the application of labor in order to make it productive. When a capitalist employs one or more persons to apply his or their labor to his capital in the production of wealth, paying to each one a stipulated sum of money for his services, such sum is called a wa.ere ; and an industrial system in which the workers have most or all the forms of freedom and work for a wage is called the wage svstem, or capitalism, as dis- tinguished from slavery and serfdom. INTRODUCTION n The wage system was extensively practiced by the ancients, though how extensively, or when it first became the prevailing system, may be difficult to determine. Certain it is, however, that when slavery and serfdom disappeared they were replaced by the wage system. And again we may observe that the advantages to the worker of the wage system over slavery or serfdom are mostly in outward appearance; for it has often happened that the lot of the wage worker has been harder than that usually accorded to the slave or serf. But again we say that this difference in outward appearance counted for a great deal. The condition of the chattel slave, that of abject servi- tude, always subject to the beck and call and oversight of another, was degrading in the extreme. The serf, having some of the forms of liberty, made some advancement. His self respect was raised ; his intellect received a decided stim- ulus; he became more trustworthy; his labor more skillful, and therefore more profitable to his employers. Production was no doubt increased over what it was with chattel slavery, and would probably have been much greater, had it not been_ for some cf the evils of the Feudal System with which serf- dom was generally connected. But under the wage system the worker, having all the outward forms of liberty, came to regard himself as in all respects a free man. As a result, he soon rose in intellectual capacity, in skill, in enterprise. As a result of the introduc- tion of machinery production was greatly increased and the standard of living was raised somewhat. The profit which the capitalist derived from his labor was greatly increased, so that there has come about that great concentration of wealth, with the great power which it exerts in the world, that has given to the whole system the name capitalism. As compared with the older industrial systems, the wage system or capitalism has been a great blessing to the human race ; nevertheless, capitalism is but a method of exploitation by which the capitalist appropriates to himself the labor of the wage worker, and, as we shall see, it too must soon be weighed in the balance and found wanting before ah enlight- ened public conscience and be replaced, may we not hope, by a system in which there shall be no more exploitation, and under which "man's inhumanity to man" shall forever cease? "Man, whose heaven erected face With smiles of love adorn; Man's inhumanity to man Makes countless thousands mourn." Burns. 12 ANALYSIS OF SOCIALISM CHAPTER II. COMMERCE. Primitive Arts. The wants of man in the primitive state are few and simple. With a club he kills his game, tears it into pieces, and devours it raw. Accidentally he discovers the use of a sharp stick. In the same way, perhaps, he learns the use of fire. With a shell or sharp rock he sharpens his stick; next he hardens it in the fire and has a somewhat for- midable weapon, a wooden spear. Another very important accomplishment was the learn- ing to throw his spear. Here his acquirements came to a standstill for awhile. With the development of the spear and the javelin the savage probably rested in the thought that he had reached the utmost of human attainment in this .line. After some time, perhaps many centuries, a further great discovery is made, and that, to him, most wonderful weapon and instrument of the chase, the bow and arrow, is developed. Division of Labor. In his primitive condition, each man is generally his own mechanic. His highest skill is exerted in carving out, with his rude instruments, the bow and arrow. Some have not skill to do this with any degree of success. Others have special aptitudes, and they from preference, while still others from necessity, as, for instance, by reason of being old or crippled, cultivate their mechanical skill by making and supplying tools to those who are less skillful, but stronger and more active, and receive from them in return a portion of the products of the chase. It was somewhat thus that man first learned the principle of the division of labor. Exchange. Simple as were the wants of the savage, it often happened that these could not all be supplied from one locality, and so exchanges became necessary. Shells and fish from the seashore were exchanged for articles of the interior. Nuts and berries of one locality were exchanged for the game and skins of another. In such simple beginnings, commerce originated. The simplest method of exchange, and no doubt that which was used at first, was by barter, exchanging one thing for another. As an exclusive method this did not prob- ably continue long. And yet it has been used more or less through all succeeding generations. Those of us who have passed the half century mark may easily recall the old log cabin days when money was scarce and people exchanged their products, often without much regard for money value. It was a common occurrence for a man to plow or gather corn or make rails for the cobbler who worked during the same time making or mending his shoes. In the same way COMMERCE 13 the farmer exchanged work with the carpenter, the black- smith, the tanner, etc. It is easy to see that the true and just basis of exchange is the labor time required in the production, due allowance being made for the value of skilled labor. To what extent this principle was carried in exchanging articles already pro- duced is of course unknown, but it was probably never exten- sively used, for the reason that man, even among the nations who have attained the highest development hitherto known, has not generally been sufficiently unselfish and fair minded to live up to a true and just standard. And this opens up before us a broad side view of an important moral phase of the subject. Here let U3 pause and restate two of the principles men- tioned at the beginning of Chapter I, namely, All men have an equal inherent right to ownership of the earth and its resources ; and, Wealth belongs to those 'who produce it. For many years these principles, more or less definitely stated, have been flaunted to the breeze on the banners of Socialism, and in fact, of nearly all reformatory movements in all parts of the world. They have constituted a standing challenge to the world for refutal ; but notwithstanding the fact that they are an acknowledged contradiction of, and menace to, our present system of society, they have stood unassailed, and for but one reason, namely, that they are simply unassailable. They are too self evident to even a superficial thinker to be questioned. And yet they condemn the fundamental institutions of society. Principle II. places the moral ownership of the earth in the whole people, while we find the legal ownership, even in our own new America, in the hands of a comparatively few, and fast passing into the hands of a very few. Principle III. vests the moral ownership of the whole product of labor in the laborer, while we find the legal ownership of most of it in other hands. In exchanging the products of tabor, as before observed, man has generally proven too selfish to conform to a just standard. With the individualistic method of production, even though the moral sentiment might be high enough to attempt the adoption of the labor time basis as a custom, there would be so many exceptional cases and side conditions that they together with man's selfishness would soon overturn the cus- tom. To illustrate some of these, A has a surplus of corn and B a surplus of wheat. A desires an exchange but B objects, saying he has sufficient corn for his own use, and as there is an overproduction of corn in the community he would have to hold it for a long time before he would be likely to have an opportunity to exchange it for some other article he needed. i 4 ANALYSIS OF SOCIALISM So he demands from A a larger amount of corn than is represented by the labor time of the wheat, and though he be strictly honest in his intentions, yet unless he be unusually fair minded and unselfish B will incline to magnify the dif- ference in the value to him. A, looking at it from his own point of view, will incline to minimize them; nevertheless he must have wheat and doesn't know where else to get it. So he reluctantly accedes to B's terms, at the same time feeling that B has taken advantage of his necessity; and, perhaps, resolving that he will take a -like advantage at the first opportunity. B also reckons on corn being more easily spoilt and more likely to be destroyed by rats and mice than wheat, and if it turns out that he makes a great gain by the transaction he justifies himself saying it was worth a great deal to take so much risk. If A's surplus consists of cattle, horses and other live- stock, their care arid feed while holding them for a reduction of the supply must be taken into consideration. If it is in perishable articles, like potatoes, for instance, that also must be reckoned. Cases like these would soon multiply, until the labor time basis would soon disappear; and practically, each one would seek to get the best possible exchange for himself. And that is just what has come to pass. In all past civilizations so far as history informs us, the agreed relative value of the articles exchanged, or the agreed money price of the articles sold or exchanged has been the basis of practically all exchanges. Generally, each one seeks the best of the bargain, but not always. In many rural com- munities and religious societies there has been a disposition to refrain from charging exorbitant prices. But the tendency has been to drift to the idea that the value of an article is the most that it will sell for, and that is the principle that controls in all our exchanges to-day. This constitutes a part of the system which has grown up with it, The Competitive System. The competitive system has three essential elements: i. The Agreed ^ Price; 2. The Law of Supply and Demand, and 3. Competition. The first has already been discussed. 2. The Law of Supply and Demand. When a less quan- tity of any article is offered for sale than would-be purchasers are seeking to buy, the supply is said to be less than the demand; when there is as much offered as is desired to be purchased, the supply is said to equal the demand, and when there is more offered the supply is said to be greater than the demand. One who makes, causes to grow, or gathers an article is COMMERCE 15 called a producer; the making or gathering or both, the pro- duction, and the whole of the article produced, the product. Those who use an article that is produced are called the consumers, and the act of using, the consumption of that article. The supply of an article does not always correspond to the production, for several reasons, among which are, that the producer may be too busy at something else to move the product to market; or, he may be holding for an expected rise in the price. Similarly, the demand may be greater than the consumption. The consumer may find it more convenient at a particular time to purchase and store away for future use, than to wait till he needs it, and he may desire to pur- chase before there is an expected rise in the price. When this is the case, profit mongers enter the field expecting to reap a harvest for themeslves by buying and holding for a rise. In the past they often competed with each other and forced the price up; In recent times, however, they are gen- erally shrewd enough to combine explicitly or tacitly, or divide territory. When the supply is less than the demand, the price goes up and remains so until more is produced, or the producer is induced by the higher price to put more of the product on the market. When the supply exceeds the demand the price falls and remains down till the supply is consumed, or the consumer is induced by the lower price to store more for future use. It will be observed that an under supplywith its higher price stimulates production, while an over supply with its lower price stimulates consumption. 3. Competition. When a large enough number of per- sons engage in the production of a commodity to furnish an over supply and a consequent fall in the price, it is evident that some of them must go out of business, or a part, or all of them, must diminish their production. When a number are desirous of selling their product in order to buy other necessaries and the amount of the product offered is greatly in excess of the demand, since the purchaser always seeks to buy as cheaply as possible, it is evident that those who offer at the lowest price will be the first to sell. This causes a competition or struggle among the pro- ducers. Generally it is some expense to fit up for the pro- duction of a given article, so that those who have been at the expense dislike to change to some other calling; and besides, it often occurs that thev see no other opportunity elsewhere, so they set their minds to work, studying how they may reduce the cost of production so as to enable them to under- sell their competitors. Better tools, better methods, lower 16 ANALYSIS OF SOCIALISM wages to hired help, harder work and longer hours any or all of these are brought into requisition in the competitive struggle. Finally, those who fall behind in the struggle change wholly or in part to producing something else, until the supply becomes diminished so that it is less than the demand. Then the price begins to rise; for, let it be noted, whenever the supply is less than the demand the price rises, and whenever it is greater the price falls. And let us note also that this principle applies to money and labor as well as -to ordinary articles of merchandise. Such then is the competitive system of exchanging wealth; a system that is as old as history and which has been depended upon by all past civilizations to stimulate produc- tion, keep the wheels of commerce turning, and bring to each one's door such a variety of labor's products as will supply his every want. The fact has been recognized all along by thinking people, that it is far from providing justice in each individual case; and yet it was regarded as, on the whole, generally bringing approximate justice; that, like a game of chance, if one loses in one transaction, he will gain it back in another. There can be no doubt about the similarity, and more is the pity for the competitive system, that the resem- blance is so strong. As in an ordinary game tricks are intro- duced that give the strong an advantage over the weak, so it is in competition ; and whether or not man could have risen from savagery as well without as with competition, and how- ever well it may be suited to a low stage of civilization, one thing is certain ; the competitive system is based on pure selfishness, and is, therefore, not well suited to a high civili- zation. Allowing for exceptions, the producer produces more in order that he may have more for himself, may get more money into his own pockets, and not for the purpose of mak- ing the price cheaper to the consumer; he withholds his product from the market in hope of getting a better price later on, and not for the purpose of giving his fellow pro- ducers a better opportunity of selling theirs, and he changes to some other occupation knowing that his doing so will be against the interests of those of that occupation, because he seeks to better his own condition and not because he is desir- ous of alleviating the condition of those in the occupation which he is leaving. Again, in the same way, the consumer buys heavily in a crowded market, simply because he gets more for the money, and not to accommodate those who are anxious to sell. Yes, our great commercial system, the competitive sys- tem, is exceedingly selfish. We have become so accustomed to it, however, that it hardly seems so. We have come to COMMERCE 17 take it as a matter of course and go right on and seldom think of it as being otherwise than all right. Its main arm, competition, has extended into and become a part of all indus- trial systems. They too were born and nurtured in selfish- ness, and they too were, for a long time, taken as a matter of course, regarded as a natural condition, and therefore right. After a time economic conditions changed, the public con- science was awakened, and serfdom had to go ; chattel slavery had to go. Then public conscience, seeing there were no more cases on docket, or at least none of importance, was quietly rocked to sleep. For a long time she has been slumbering. Often she has been disturbed by unpleasant dreams. Sometimes she has been startled and partially awakened, but only to think some- what stupidly for a very short interval of her hideous visions, and then relapse into the same unconscious slumber. The disturbances have become more frequent, and recently she has been aroused by events of so startling a nature that it is certain she is actually waking up. We may also add that the events that are now transpiring are so intensely exciting that there can scarcely be a doubt that she will remain awake. Soon she will be seen donning the ermine and taking her place on the bench. Soon our great competitive, capitalistic, wage slavery civilization will be called up before her to answer to an indictment in which it is charged with all the crimes that are known to civilized man. The trial will no doubt be long and tedious. The ground will be stubbornly contested, inch by inch. Every falsehood and every device which human ingenuity can invent will be brought into requi- sition. The defendant will be supported by all the power that concentrated wealth can furnish, and it will be a giant to cope with. Nevertheless, truth is mighty and will finally prevail. The evidence will be sifted ; it will thoroughly con- vict the defendant, who will be found guilty of all the crimes charged in the indictment, and will be sentenced to be tram- pled under foot amid the wreck and rubbish of a semi-bar- barous past. But let us observe that the public conscience is largely under the care and supervision of the ruling class, the most influential, the wealthiest class, the class that has control of the government, the press, and all the institutions of society; this class usually lulls her to sleep or awakens her, which ever best suits its purpose, based, of course, on its own self interest. So long as chattel slavery best suited its purpose the hnsh-a-bye song was continued so that the cry of the oppressed bondman was not heard and the shrill cry of the abolition agitator was smothered and confused so that the 18 ANALYSIS OF SOCIALISM sleeper was but occasionally startled. But when the time came that wage slavery was more profitable to the more powerful masters than chattel slavery, then the public con- science was called up and chattel slavery had to go. The Cuban atrocities had been long continued, little noticed by the people of the United States; but in the year 1898 our imports exceeded our exports, the capitalists must have a market for their surplus products; so the great dailies imme- diately began to parade before the public, pictures of human butchery, of Spanish tyranny and Cuban misery. The smaller periodicals and the local press copied these articles, the public conscience was awakened and the war followed. So it has been in most wars of conquest; and often that most sacred thing, that purest gem of society, the public conscience, has been utilized by a corrupt plutocracy to minister to their in- satiable greed. Sometimes, when the public danger is very great, or the public conscience is greatly outraged, a weaker influential party may succeed in arousing her in spite of the efforts of the stronger to muffle and confuse their cry; but generally the stronger party, the wealthiest class, prevails to such an extent that the cry of the weaker is little heard. I trust I may be pardoned for anticipating somewhat, but it is a convenient point to say that the present awakening has been caused by several widely different elements, chiefly the smaller capitalists and those under their influence, and the Socialist agitators. For a number of years the latter have cried aloud and not entirely without success ; for the sleeper has sometimes been known to sit up and rub her eyes, only, however, to be lulled to sleep again, but now, the smaller capitalists, who formerly were principal singers in the lullaby chorus, have become alarmed at the prospect of being swal- lowed up by the great capitalists, have suddenly dropped out of the chorus, have joined the agitators and are violently shak- ing the sleeper with magazine and newspaper articles much to the chagrin and discomfort of the great capitalists, wha appear to have been taken by surprise. And permit me to remark in passing that I do not wish to be understood as claiming that conscience is the only motive, or even the strongest that determines national action. It is, however, a factor that comes in to be reckoned with and cannot be ignored under a popular government like our own, or any other where the popular will is consulted. It is a creature of education, and is very pliant. Naturally self- assertive, it quickly loses this quality when the attention is distracted or directed into other channels. And so it is that those who have the power to grain and hold the public atten- tion often perpetrate a wrong against society by educating the COMMERCE 19 public conscience through specious argument and skillful maneuvering, till the wrong seems right, or by distracting the attention till the wrong is overlooked. The exercise of the public conscience occurs mainly in those cases where a wrong is proposed or actually perpetrated against a class, and the main body of society recognizes the wrong and disapproves it for that reason, and not because of their own self-interest in the matter. When a wrong is perpe- trated against the great body of the people their recognition and disapproval of the wrong could hardly be regarded as a matter of conscience, but rather of self interest, which in extreme cases takes on the form of self preservation. In the case of American chattel slavery the Northern capitalists op- posed it through self interest while with the masses of the people it was almost exclusively a matter of conscience. The capitalists, having control of the press, held the attention upon the evil till the public conscience was aroused, which resulted in a great tidal wave of indignation that swept all before it. The condition of the slave was so degraded that what he thought and said and did cut very little figure in his emanci- pation. Nearly all of this work had to be done by those above him who sympathized with him, and whose consciences re- volted at the injustice heaped upon him. In our present case it is different. True, there is a class at the bottom, the sub- merged tenth, if you please, whose condition is pitiable in the extreme, worse, far worse than was that of the black slave. A large part of these are nearly as ignorant and about as little able to help themselves. Their emancipation depends upon the class above them, the great body of- the people, who, as they come to learn and realize their abject condition, are com- ing to sympathize more and more with them ; and whose con- sciences are coming to revolt more and more at the injustice heaped upon them. We may also add that again a great tidal wave of indignation is rapidly rising that will surely sweep all before it. Thus far the cases are alike; but here the diverg- ence begins in the causes which produce the indignation. Much of it is caused by the outrage against the public con- science, growing out of the degradation of the submerged class, and this alone would, no doubt, in time produce the sweeping wave. There is, indeed, a great sympathy springing up among the great body of the people in behalf of the man at the bot- tom, which is becoming a great force; but a far more power- ful than this is that which springs from self interest and the impulse of self preservation. How long before I or my chil- dren will be in the same condition? This is the question which startles. It appeals to the man who has a dollar a day 20 ANALYSIS OF SOCIALISM job to-day but is doubtful as to whether it will last till next week. In the same way it appeals to the two dollar, three dollar, five or ten dollar man ; to the clerk behind the counter, and the farmer in the field; to the preacher in the pulpit, and the judge upon the bench; to lawyers, doctors, teachers and men of all professions ; to men of low salaries and men of high salaries all these classes are coming to entertain a feeling of great insecurity; and with all any forecast of the future is shrouded with a more or less gloomy foreboding. CHAPTER III. THE TRUST As we have seen competition has been depended upon to provide approximate justice in all commercial transactions. And yet all political economists, from Adam Smith down, agree that under competition the tendency is for wealth gradually to become concentrated into the hands of a few. During the last half century, with the advent of machinery on a large scale, this tendency has been greatly accelerated. By the use of machinery the production of wealth has been greatly increased. Often there has been a real or apparent overproduction of some articles, and in all such cases oppor- tunity was offered to the exploiting capitalists to add greater profits to their already rapidly increasing stock of wealth. Fortunes, great fortunes, sprang into existence and came roll- ing and gathered as they rolled. The speed with which the concentration went on became greatly accelerated. The signs seemed ominous. Wise men began to shake their heads, say- ing, "It is only a question of time/' But within the last twenty years a new factor has come on the scene. A strange comet has appeared on the com- mercial horizon. It was a mere speck at first, and only drew a passing remark from the casual observer. But a little study revealed two very important and startling facts : First, it was coming directly this way ; and, secondly, it was travelling with a rapid and very greatly accelerated veloctiy. I mean that somewhat varied form of capitalistic combination which we call the "Trust." The rapid advance of the stranger soon occa- sioned some solicitude among the people. The politicians were consulted, and they simply said, "Never mind, only elect our party and we'll soon break the trust." A few of the people became alarmed, and then the politicians began to howl, "Down the trust!" and for a dozen vears it has been the campaign watchword of both the great political parties. THE TRUST 21 But nothing stayed nor even hindered the onward sweep of the great comet. Now she is upon us. Already she has de- molished all that was claimed to be good in our competitive system. The capitalists have substituted combination for competition. All that is left of competition is among the farmers, the smaller tradesmen and the wage workers (for labor, too, is a commodity subject to competition) ; and to all of these classes it is the direst curse. It is becoming apparent that our liberties must be entirely swept aside unless some decisive step be soon taken. And these are the startling and exciting incidents that are just now awakening the sleeper mentioned in the last chapter. How much of liberty is left even now is a very serious question. The process of wealth concentration under competition was gradual, yet moved with an accelerated velocity. Under the trust the acceleration is so stupendously increased that there is hardly a comparison. The one may be called an absorption, while the other is simply a swallowing process. And if the process continues at the present rate it will not require long for the trust to swallow our whole civilization. And now, what is this great monster? What is the nature of this thing we call the "Trust?" Just wherein lies its power to take the wealth from the many and place it in the hands of the few? Just what is it doing, can it do, will it do, and what is, and will be the effect on society, and what may society do with it? Under the competitive system each individual pro- ducer, consumer, middleman, distributor or speculator (and let it be remembered that a partnership or corporation is accounted an individual), ea'ch individual constitutes a unit. When every unit acts independently of every other unit com- petition is said to be normal ; but when two or more units com- bine so as to raise or lower prices for the purpose of enhancing their mutual interests, competition is thereby rendered abnor- mal to the extent that such combination affects prices. As we have already seen competition failed to secure justice in each individual exchange. It was recognized as a game of chance ; but it was thought to be a game in which each one had a fair chance, so that in a large number of exchanges there would, on the average, generally be approxi- mate justice secured to each one. It follows then, that when two or more persons who own any commodity, as beef, for instance, conspire together to raise the price, or when pur- chasers conspire to lower it, they play unfairly, or are guilty of foul play, or, to put it in up-to-date language, they have formed a trust. It does not matter whether the conspiracy is a written agreement, an oral agreement, or an unexpressed, 22 ANALYSIS OF SOCIALISM tacit understanding. If it affects prices it is an unfair play. It is virtually a trust. Such foul play is probably as old as commerce and has, no doubt, been practiced more or less through all past stages of civilization; but the cases were probably comparatively limited in number and generally on a small scale. It is only in very recent times that it has reached such grand pro- portions. While the industrial units were small such combinations were of little consequence. Perhaps the first cases that attracted general attention were where two railroads belonging to two opposing companies ran parallel. At first they cut rates to the great delight of the people, who rejoiced greatly in the realization of the saying that "competition is the life of trade." Soon the companies saw their folly and came to realize that while competition is the life of trade, it is also the death of the trader. They therefore united and raised charges as high as the traffic would bear, and the people's rejoicing came to a sudden stop. But this was only the beginning of sorrows. Soon the real thing appeared. A very little thing at first, it soon grew to make itself seen and felt and feared, and now we are up against it. Now we have trusts galore great railroad trusts, great iron and steel trusts, a great oil trust that has already swallowed several others, great steamship trusts, machinery trusts, woollen trusts, cotton trusts, linen trusts, clothing trusts and all sorts and sizes of manufacturing trusts. Then there are coal trusts, wood trusts, lumber trusts, shingle trusts, coffin trusts, meat trusts, flour trusts, fish trusts, fruit trusts, leather trusts, professional trusts of all sorts, labor trusts of all sorts, mining trusts and so on without limit, not forgetting the money trust. Go through a department store and pick out all the articles the price of which is in no way affected by the trust; you may have a small vest pocket series, but more likely you will have nothing. The methods of the trust are varied, and yet may, per- haps, all be expressed by the word combination, as opposed to competition. There are combinations to bull or bear the market, raising or lowering prices according as those in the combine desire to sell or buy. One of the chief methods of raising prices is by limiting the supply, which is done in sev- eral ways : one, by curtailing the output of each plant in the combine ; another, by pooling profits and closing part of the plants ; still another, by destroying a part of the product. The last is resorted to perhaps oftener in cases of perishable articles like fish, potatoes and other vegetables, fruit, etc., large quantities of which are often dumped into rivers and THE TRUST 23 harbors. But it does not by any means stop with what are usually termed perishable articles. Even shiploads of spices are sometimes dumped into the sea. After the speculators have bought up practically all of a cotton crop they sometimes burn large quantities of it. In all these cases the object is to reduce the product till the supply is less than the demand, knowing that then the price will rise, so that they can get more for the remainder than they could have gotten for the whole product at the lower prices which the over supply would have brought. Often intimidation is resorted to, as in cases where great packing associations coerce local markets all over the country into buying their products by threatening to under- mine them with rival shops. The immense profits which the great capitalists are enabled by these methods to pile ur> annually constitutes in each case a large fund for investment. And a place for investment- is not far to seek ; for those who are engaged in small manufacturing or business of any kind, having to pay a royalty on every article used in their business, and finding their profits continually reduced, are therefore ready to sell at a reduced price to the trust combine, which by application of large scale methods, adds greatly to its holdings and its profits and increases its power to swallow. Again by the uniting of a number of big plants, the swallowing power is vastly multiplied. And where is this swallowing to end? To me there can be but one answer, and that is that unless something can be done to avert it, the time is not very far distant when some mammoth combine will gulp down the last morsel and howl because there are no more worlds to swallow. And it begins to look very much as though the great "Standard Oil" com- bine will surely be "it". When we consider the vantage ground occupied by this great octopus, and the power it wields over all wealth, we find that the final swallowing pro- cess has really proceeded much further than at first appears ; in fact, that practically all that is left unswallowed is virtually in the dragon's mouth, since it is under his control. To show what I mean I will close this chapter with an extract from "The Shameful Misuse of Wealth," by Cleveland Moffett, found on page 7 of "Success Magazine" for January, 1906: "Sixteen years ago Thomas G. Shearman, a distinguished corpora- tion lawyer and a brilliant writer on economic questions, prophesied that 'within thirty years the United States will be substantially owned by less than one in five hundred of the male population !' Nor is evidence want- ing that his words are coming true. The land of this country is still widely owned, although hundreds of millions of acres of its grazing lands, timber lands and mineral lands have been shamelessly stolen in land grants and land grabs; but the farmers and small producers are 24 ANALYSIS OF SOCIALISM absolutely at the mercy of the railroads, which, with their two hundred thousand miles of tracks, their capitalization of over twelve billion (par value) and their army of five million people dependent on them for a livelihood, are practically controlled by nine men John D. Rockefeller, J. P. Morgan, n. fl. tiarriman, George Gould, W. K. Vanderbilt, J. J. Hill, A. J. Cassatt, W. H. Moore and William Rockefeller. And John Moody, author and publisher of 'Moody's Manual/ in his exhaustive and authoritative work, The Truth About Trusts,' finds that in the United States to-day there are 440 large industrial, franchise and trans- portation trusts with a capitalization of over twenty thousand million dollars. Which, says the 'Wall Street Journal/ is 'one-fifth of the wealth of the country and the most powerful part of it, for it is wealth under such concentrated control that it practically sways the whole/ And Mr. Moody concludes that a score of men practically control this twenty billions, which is the aggregate of our manufacturing and transportation resources. They control the avenues of distribution and the agencies for transforming raw materials into finished products; so it is plain that these twenty men Rockefeller, Morgan, Gould, Harriman and the rest indirectly control nearly all the remaining wealth in the country, since whatever comes out of the ground or is fed by it must pass over their lines of transit and through their factories (and at their terms) before it can get from the producer to the consumer. These are signs of the times !" CHAPTER IV. REVIEW OF PRESENT CONDITONS. When we compare present with past conditions, we find much to commend. We find that on the whole man has made great advancement. The average of wealth per capita is much greater than at any former period. In our own country and in all parts of the earth except where there is an overcrowded population there has come to be little fear of famine. The average standard of living in all those things that go to make life enjoyable is higher than ever before. The average family has better food, better clothing and better shelter, better schools and more books and periodicals of all sorts, more pic- tures and more and better musical instruments ; and in the matter of travel and communication we have made still greater progress. Where a century ago it required a month or two to learn of the severe illness or death of a relative or friend, now we may be informed at once, and, stepping aboard the next train, may be whirled away hundreds, even thousands of miles to the bedsides of those who are near and dear to us. With better education has come a greater degree of refine- ment, higher ideals, and a much fuller appreciation of that which is beautiful and good. While we still hear of wars and rumors of wars, and the wars are of the most destructive char- acter, yet, on the whole, there is far less of rudeness, coarse- REVIEW OF PRESENT CONDITIONS 25 ness and fierceness in the average of human nature as we see it to-day. In the department of medical science, surgery and in the various means of restoring and preserving health, we have made great progress. The light of modern investigation has wholly or in part banished the terrors of a number of con- tagious diseases that have so often been the scourge of society in centuries past. Indeed, so much has been done that the average length of human life, which has been on the gradual decline through all past history, is now said to be decidedly rising. There is, perhaps, no other field of progress that can show a greater degree of advancement than that which provides not only for the increase of wealth, but also for alleviating the intensity of the toil and the hardship of the workers. It requires but one word to explain what I mean, and that word is "machinery/' The very mention of this word sets the mind to drawing contrasts; contrasting the wooden mould board with our gang plow ; hand sowing, with our double disk drill ; the sickle, scythe and cradle, with our mower, self binder, header and combined harvester ; threshing with flail or tramp- ing with animals, with our modern traction steam rig; remov- ing cotton seed by hand, with the cotton gin; the spinning wheel and hand loom, with the factory ; the stage coach and ox team, with our overland flyer and double or triple header freight train ; the pony express, with the telegraph and tele- phone, etc., etc. In all departments of human industry machines without limit have been introduced which are calcu- lated to confer untold blessings on humanity, in that by their use without inexhaustible labor, there may be produced a plentiful supply of all necessaries, and not only necessaries, but an abundance of the luxuries of life. In a land like our own with so great an abundance and variety of the earth's natural resources, it is possible with our modern labor saving appliances to produce an abundance o'f all necessaries and all those luxuries that will help to make life fuller and happier. And so great is the labor saved by machin- ery, that this may be done without overtaxing the energies of any of the laborers. In fact, most of the work is done by machines. A man guides the machine, and the machine does the work which formerly required the labor of five, ten, twenty, fifty or one hundred men, and the remainder are left to run other machines, and when all the machines have been manned there is so large a force left that the work which must be done without machines may be so divided among them as not to be burdensome on any. And it need no longer be that children 26 ANALYSIS OF SOCIALISM must be absent from school with the old time excuse of "staid- at-home-diggin'-taters." In the olden time the farmer (and most of the people then were farmers), with his rude tools prepared the soil, planted, cultivated, harvested, threshed and garnered his grain. He also made many articles that now come from the factory, such as shoes for his whole family. He raised a few sheep, sheared them, washed the wool, the housewife picked it, and after it was carded, plied her wheel, pacing back and forth from side to side of the room, often the only room in the house, till the rolls were worked into yarn. Then she colored the yarn. Then, with her home made loom she wove it into cloth. Then she entered upon her final task of cutting, fitting and sewing all the clothes for the whole family, often of ten or a dozen. Of course, the knitting of mittens and stockings of all sizes went along with the rest. And besides all this there was the regular round of cooking, washing, caring for the children in sickness or health, soap making, which was started with the ash hopper, milking cows (for she was lucky if her husband found time to milk even part of the cows), making butter, attending to chickens, turkeys and geese, including the picking of the last named, and many other things too numerous to mention. Of course, there was no time to be lost, and all through the autumn and early winter, often all winter, she worked far into the night weaving, making new garments and mending the old that they might hold out till the new ones were completed. At the other side of the big fireplace making or mending shoes or harness or making an axe or a hoe handle, or at some other odd job sat her husband. Or, perhaps, he spent most of the evening caring for the stock, for every day was needed to gather corn, cut and haul fodder, cut and haul wood, make and haul rails, build fences, make sheds, etc. There was generally no time nor money for expensive barns or fine houses, and generally the clothes were but plain home spun plainly made, no flips, no flounces, no frills. Yet. as a rule, the people were comparatively happy, simply because they knew no better, were happy in the sense that they were not unhappy. But where is the farmer now thai would like to go back to the old log cabin days and methods: And where, oh, where is the miss just fresh from college 01 high school, or even the common school, who would be willing to tackle such a proposition? No, we do not desire to return to that mode of living. W have learned a better way. We are ready to shower blessing upon the host of inventors who have brought to light th means by which it is possible for the whole people to enjo REVIEW OF PRESENT CONDITIONS 27 to the full the material bounties and sweetness of life, and not only so, but, having leisure for intellectual culture, may come into that higher and fuller enjoyment which results from the mind being expanded and awakened to the contemplation of all that is high, and noble, and grand, and beautiful, and pure, and good, in history, in art, in religion, in science, in philo- sophy and in the world of nature generally. Yes, when we contemplate these things we are led to exclaim, "What wonderful progress! How fortunate the people of this generation !" But wait. There is another side to the picture. There are two sides to this sheet, a bright side and a dark side. We have reached the bottom of the bright page, and will continue this topic where it belongs, on The Dark Page. With a population of over 80,000,000, and an estimated aggregate of wealth of about $100,000,- 000,000, our average of wealth per capita is about $1,200, or $6,000 for the average family of five. The working man would figure that, with that amount, by working very moderately he would have a very comfortable living for his family. But unfortunately for the worker, the wealth is not so evenly dis- tributed. Instead of $6,000 per family the average wealth of nine-tenths of the families of the United States is not far from one-tenth of this sum, or $600, while half of the people have practically nothing; -while one per cent of the people have ninety-nine per cent of the wealth, five thousand have nearly one-sixth ; ten men have one-fiftieth and one family has one one-hundredth part of our national wealth. So it seems that our labor saving proposition does not work so well as it might; that instead of machinery being a blessing to all it is but the direst curse to a large part of the people of our fair land. Though the average standard of living has risen, yet the rise is very small compared with what it ought to be, and, leaving out of the account the luxurious living of the very wealthy, were it not for the fact that a large part of the toilers of all past generations have had a great deal of hardship to endure, it might be doubtful whether the average lot of the masses had improved at all. Certain it is that whatever may be said of labor saving machinery as a blessing to humanity, yet, compared with what it should be, it is certainly a signal failure. If you have any doubt upon this point, go and read, if you have not already, such writings as Hunter's "Poverty," "The Shameful Misuse of Wealth/' by Cleveland Moffett. and the published accounts of those who have investigated the use of child labor in the factories of the south. Books and maga- zines describing these things are easily found. Read them. You will probably be filled with indignation by the stories of the ruthless tyranny and unconscionable cruelty of capitalistic 28 ANALYSIS OF SOCIALISM greed. You will probably become heart-sick at the tales of hardship, squalid misery, wretchedness and woe. When you stop and think, unless you have studied along this line before, you probably will be ready to say : "Yes, I can see that one reason for so much poverty is that the rich waste it upon themselves, but why should there be land lying idle, machines lying idle, and millions of people willing and able to work, idle and living like rats?" You probably understand that man will do anything for money, but fail to see where the money comes in. While I regard the facts and not the reason for their existence as the matter of chief importance in this case, yet, since the reason is so simple, we will give it a short space and then pass on. As we have already seen, labor is a commodity subject to competition and the law of supply and demand, the same as -any other commodity. The more plentiful the supply, the lower the price; and since all articles of wealth are produced for profit and not for use, it follows that the more plentiful the supply of labor the greater the rofit. Of two competing establishments, the one that hires its work done the cheaper comes out ahead. Of course, in such a contest the out-of-work can expect nothing when the rivals combine and find it to their interest to stop part of their machinery, one or more mills for instance, in order to avoid an over production, that is, the production of a quantity greater than that which would bring them the greatest profit. It might seem at first glance, that it could be easily arranged for the surplus workers to take charge of the idle machinery and produce what they themselves could consume. No doubt it could be done; but as a matter of fact, it is not. You see, it is not business. In the first place, the surplus workers, of course, have no money. They must be paid in the product. The company has no use for part of the product ; for their other machines make all the goods that they can sell ; and to give them all the product would tend to make their other workers dissatisfied. Then, though the capitalists might see that the workers repaired the machines or made new ones, yet it would require some can and attention on their part, and they would not be likely to take so much pains. Lastly they would not, because it would diminish the supply of labor and tend to raise the price, the very thing they desire to avoid. No, no. Things are not dont that way. That would not be business you know. Business is business and must be done according to business principles. Panics. As we have observed, articles of wealth are pro -duced for profit. The man would be called foolish who would undertake a business with no hope of making a profit out o it. In the production of wealth of all kinds in a nation REVIEW OF PRESENT CONDITIONS 29 certain amount is paid out in wages. The wage workers buy to the extent of their wages, and the money ail goes back to the producers, so-called, the capitalists. The farmers and other small producers of the raw material buy to the extent of the net proceeds resulting from the sales of such raw material, that is, what they have left after settling all bills for wages, such net proceeds being usually no more than ordinary wages and often very low wages. What the capi- talists have left of the manufactured product is called profit. Unless they can exchange it for wealth in the form of capital, this surplus is of no value to them, and becomes a dead weight in their hands. There are several ways by which this may be done : 1. A limited amount may be sold to the small producers beyond what their net income will purchase, they procuring the money to pay for it by loan secured by mortgage on farm or other property, and this is practically an investment of the larger or exploiting capitalists in the property of the very small capitalists, notably the farmers. I say a limited amount. The farmers are usually more or less cautious about purchas- ing when every additional purchase means an enlargement of the mortgage, and generally wish afterward that they had been much more cautious. 2. Whatever surplus of labor there is in the country may be employed in improving the plants or providing the lux- uries of the capitalists, the wages paid the workers going to reduce the surplus product by that much. 3. If a foreign market can be found, part or all of the surplus may be shipped to a foreign country and exchanged for articles to be used in improvements and luxuries at home, or for investment in foreign capital, or for money which may be invested either at home or abroad. 4. Lastly, this surplus product may be given away, either for or without a consideration. It may be given to the most influential of the people in order to secure their support, or it may be given to the whole people with or without the same object in view. If, from any cause (and the causes are multitudinous), the surplus piles up and no market can be found, then there is only one thing to do. The mills must close. The workers must sit around and eat charity soup till the surplus product is used up or wasted or an outlet is found for it. This is what is called a panic. The financial loss always falls heaviest upon the debtor class generally, and especially upon the farmers, stockmen and other small producers, who supply the raw material, and in this form and in their hands most of the sur- plus remains. The great capitalist stops short when his 3 o ANALYSIS OF SOCIALISM market fails. He sells to the working man till he gets all his money. He sells to the small producers till he gets all their money ; but these are, many of them, in debt. They have made extensive improvements and bought machinery. They must have money. They apply to the bank. The -banker shakes his head. It is not to be had. "Oh, yes, the security is gilt-edge, but the fact is, there is no money in circulation." The banker is not afraid of the loan. The great capitalist is not afraid of it; but money always flows to the point that promises the greatest profit, and for this reason it is now reserved for the purpose of taking in the snaps, and when they have all been gathered in, then it is reported that times are improving very decidedly, for the banks are beginning to loan money. So, all those whose fortunes have not been swallowed seek relief from their crippled condition, and, as business presently starts up, they are found moving forward with a greater debt than before. Such is a panic. It is often the case that the workers would be able to consume all the surplus product if only they had the wherewith to buy. In a country so rich in natural resources as is ours, where people are enterprising and industrious, and where there is so much labor saving machinery, panics are the inevitable result whenever foreign markets fail. The foreign market does not fill the bill, unless the people buy and consume more of our products than we buy and consume of theirs. When they do their money flows out of their country into ours, and the only way they can get it back is to borrow it of our capitalists by mortgaging their lands or other forms of wealth, or selling some of it outright to them. It is evident that people cannot go on long in this way without becoming bankrupt. All enlightened nations have become too wise to pursue such a course. Even benighted China is awakening to a sense of her danger. Just now the nations are ransacking the remotest corners of the earth in search of markets. In the intensity of the struggle they are jostling each other, grumbling, growling, threatening, and occasionally fighting weak nations. It is too expensive fighting strong ones ; and then, war has become so terrible that the people recoil from it. Nevertheless, military and naval preparations of the great nations move steadily on, and unless the people come to realize more fully that every war is "a rich man's war and a ooor man's fi^ht," and do like the working people of some of the European nations have already begun to do, refuse to fieht each other, there will be occasional instances of nations undertaking to crush others that are weaker, or supposed to be. Now and then the aggressor will miscalculate and draw an elephant as Russia did when she tried to crush Japan. With all the nations REVIEW OF PRESENT CONDITIONS 31 sruggling for markets, and not markets enough to go round, it is not strange that the struggle occasionally takes on the form of an appeal to arms. When the markets fail our capitalists could avert a panic if they would by keeping the mills running and increase the wages of the workers and the price of raw material, which is virtually wages, or reducing the price of the finished product till the wages and the price paid for the raw material would buy all the finished product, excepting what the capitalists themselves consume. But again, ''that would not be business, you know." The capitalists are not likely to he so foolish so long as there are any small producers, any little fish left, unless they come to fear the people. It is thought by some that under the pressure of this fear J. Pierpont Morgan pre- vented a panic in 1903. It is likely that as the people become awakened on this subject, the capitalists will proceed more cautiously and leisurely in their operations ; that they will not grab quite so voraciously for "snaps," but the swallowing will go right on, if somewhat more slowly, none the less surely. I know that the foregoing theory of panics, called the glut theory, is rejected by some writers as unscientific. Possibly it is ; and I may be like the countryman who asked a physician why hanging kills people, and after being given a long, scien- tific definition, said, "No, no! That isn't it at all. It is just because the rope is so short that the feet cannot reach the ground." Now, whatever scientific reasons may exist, it seems to me that as hanging cannot kill so long as the feet reach the ground, so, neither will the factories close so long as the manufacturers can find a market for their goods. I admit, however, the possibility of a little discrepancy in this parallel in cases where factories are compelled to close on account of a money stringency produced by other causes. But whatever original causes may have operated to pro- duce the glut, it seems to me that the present intense struggle among the nations for markets g-oes to prove that it is the immediate cause of panics, and that it may be remedied by procuring a sufficient outlet. CHAPTER V. REVIEW OF PRESENT CONDITIONS (Continued). To illustrate the baleful effects of concentrated wealth and its consequent poverty, we quote again from Cleveland Moffett's "Shameful Misuse of Wealth": "It is interesting to consider how much richer the rich will get, and I may remark here that there is no need to inquire how much 32 ANALYSIS OF SOCIALISM poorer the poor will get. If they are to live at all they cannot get much poorer. What greater burden of poverty can we put on the four million American families who to-day with their best toil can gather less than four hundred dollars a year? What more can we take from them than we have already taken? The Massachusetts Bureau of Labor has collected statistics showing how these poor families spend their pitiful incomes. It appears that $3.88 each week goes for food. Shall we cut that down? Or shall we cut down the $2.91 a month they spend for clothing? or the $7.50 a year they spend for furniture and household furnishings? Or the $7.00 a month they pay for foul, dark rooms in a tainted tenement? Think what it means to support a family in a city on four hundred dollars a year, to bring up children, to pro- vide for sickness, to furnish pleasures on four hundred dollars a year ! "And these are not the poorest of the poor, these are self respecting laborers, producers of the national wealth ; there are millions of others whose lot is worse than theirs ten million, Robert Hunter estimates, in helpless poverty, out of work, out of health, out of heart with the world, broken driftwood, vagrants, tramps what shall we take from them? "So the question simply is how much richer will the rich get? Will any limit be set to these vast fortunes? Are billionaires to become as abundant in the twentieth century as millionaires were in the nineteenth? Why not? We have scarcely scraped the outside crust of our national resources. What our land and industries produce to-day is nothing to what they will produce, and our present population is but a small part of what it will be. By 1960, we are assured, the national wealth that seems so enormous now (say a hundred billions in 1905) will have increased to nearly a thousand billions, and by 1990 to over two thousand billions. Such are the conclusions of experts in financial statistics, who also say that under the present competitive system nearly two-thirds of this vast increase in our national wealth will be permanently absorbed by a few thousand very rich families. Which means that whatever may befall indi- vidual millionaires or individual sons or grandsons of millionaires, the rich as a class will continue to grow richer, much richer, so that in thirty or forty years, under existing conditions, the five thousand richest Ameri- cans, instead of having fifteen billions between them, as to-day, may have fifty or a hundred billions. And still the mass of the people will have practically nothing, still hundreds of thousands with bitter toil will barely secure the necessities of life and millions will be crushed and broken in the struggle. "So, if present conditions continue one looks ahead vainly for some brightening in the picture of our poverty and wealth, our misery and affluence, our luxury and want. Things will be worse, not better, and every year will show a more painful contrast between the few who have everything and the many who lack everything. Ponder these words from that hard financial compendium of Waldron's already quoted (p. 102) : 'Little wonder then that the rich are rapidly growing richer, when but one-twentieth of the families, they are receiving one-third of the nation's annual income and are able to absorb nearly two-thirds of the annual increase made in the wealth of the nation.' Think what that means to the poor! "What it means to the rich is that they will find it more arid more difficult to spend their enormous incomes and will set a faster and madder pace of luxury and extravagance. All the signs point that way, and after all what else can they do with their money. They cannot eat it nor hang it around their necVs (except some odd millions in trinkets), nor buy seats in heaven with it. There is nothing to do but flaunt it before the nation .in palaces and gorgeous fetes, in costly laces and plates of gold, in furious follies that seem to cry out: 'See. we are rich, rich, rich, and you are poor.' Nor can any man say what will be the echo of that cry !" REVIEW OF PRESENT CONDITIONS 33 When we compare present conditions with the funda- mental principles of equal ownership already stated, together with its derived principle, "Wealth belongs to those who pro- duce it," we find that they do not in any manner correspond; for we find the earth's resources in the hands of a few, while the laborers, who are the actual producers of wealth, have very little of it. As heretofore observed it is a fact well understood that the agreed price is far from being a fair basis of exchange, for the reason that one of the parties may, and often does, take advantage of the other's necessities. Political economists have all along recognized the fact that the competitive system does not furnish exact justice in all individual cases, but it has been depended upon to supply approximate justice in its gen- eral application. Time has shown the mistake, and the degree of approximation has continued to deviate more and more from the line of strict justice, and now that the trusts have swept away the supposed approximation there is nothing left but what? Ruthless robbery shall I call it? Well, yes. That is surely what it is. P>ut come, let us not be too hard on the poor millionaire. Possibly he may deserve about as much pity as blame. If the force of accidental circumstances has caused him to grow up before society a dangerous maniac, sowing destruction broadcast, wrecking the lives of multiplied millions of human beings, sending forth into millions of homes the scourge of abject want and misery, and inflicting upon all the people of our fair land a degree of injustice and hard- ship and anxiety , that greatly mars their happiness, then society is principally to blame if it does not use its utmost endeavor to restrain him and remedy the evil. And what are most, if not all, our great capitalists but maniacs, mono- maniacs, who have studied so long and with such intensity the one subject, profits, that they have become money mad and entirely reckless of the welfare of their fellowmen? But what is the real action that has produced such baleful results? Perhaps one of the first rights recognized by human beings was the right of each one to the product of his own labor, and growing immediately out of this was the recognized right to exchange this product by mutual agreement, and this developed into the agreed price as the basis of right in all commercial exchanges, which has been recognized and adhered to by nearly all past civilizations. As we have seen this is a very defective standard. At the first it was attended by two principal evils. First, it permitted one person to take advantage of another's necessities, and, secondly, it permitted the strong minded to take advantage of the weak minded. Under competition both these evils increased greatly. 34 ANALYSIS OF SOCIALISM Under trust domination they are so greatly aggravated that there is practically no limit until the utmost of human endur- ance is'reached. These two evils have been regarded all along as necessary evils. Jn all the centuries of man's rise from savagery society has recognized as a right belonging to each person, that he 'might buy for as little as he could induce or persuade the other fellow to take or sell for as much as he would for any reason consent to give, without regard to any hardship it might inflict upon the other, provided there is no direct physical compulsion. So it is a fact that cannot be controverted that a very large part of the evils that now afflict us are the result of the legitimate exercise of this principle we call a right, while the remaining part results mostly from abuses that are the natural outgrowth of it. A young man fresh from college, his face beaming with intelligence, his open countenace the very impersonation of honesty and integrity, his mother's kiss upon his forehead, and her loving "God bless you, my boy," ringing in his ears, is whirled away to the great city where he embarks in business. Like nearly every other young man, he starts out to make a big fortune. And it must be all honest money. He does not hesitate on that point. He is careful to meet every obligation promptly and expects the same from others. He is in for profits. Therefore he says, "I buy as cheaply as I can. If the other fellow does not want to accept my offer let him sell to some- one else. I sell for the most I can get. If the purchaser can do better let him do it. I do not hinder him. I employ the laborer at the lowest possible wage, and get the most work I can from him. If he is not satisfied he may quit at any time. And, besides, this is the rule of my competitors and I must follow it or go out of business. I know there is hardship and suffering on every hand, and it makes my heart bleed to see it, but what can I do to prevent it but become a pauper myself?" He comes, however, to have a vague, indefinite feeling of guiltiness, and that the-e is an injustice being perpetrated somewhere, though his reason fails to show who is the guilty party. In fact, on reviewing his action he finds that he has adhered strictly to the line of his recognized rights. So he goes on, his conscience bein<*- wakened somewhat, especially if he has been successful in business, for success means profits, and profits mean an increased appetite for more profits, and this appetite for profits helps to smother the conscience. This intense craving impels him forward and causes him to forget, at least partially, the misery about him, and, to say the legist of it, the process is a decidcdlv hardening one. Presently he comes up against another phase of commercial life. H^e- tofore, when he has found the other fellow in a pinch fo REVIEW OF PRESENT CONDITIONS 35 money, and "must have it," and no one else to buy his wares, he has exercised his acknowledged right to run the price to the lowest limit; he has followed the same principle in selling and in the employment of labor, and he has often made use of his own superior knowledge and intellectual training in his dealings with those less favored in this respect. This was his acknowledged right, was perfectly legitimate. But he has never purposely done anything to create or increase the other's necessities. Neither has he ever resorted to falsehood in order to deceive him into doing what he could not otherwise be induced to do. True, he has always kept his own counsel, which was also his admitted right. Now he has come to a point where, by a skillful movement on the commercial checkerboard, he may heap a necessity upon the other which will compel him to buy or sell to his own advantage. Perhaps the other fellow is his business rival. Maybe he has played this same game on him. In any case, his competitors follow the rule and he must follow it too or fall behind in the race. His conscience has become less assertive. His appetite for profits and the business pressure have become stronger; he has become accustomed to the suffering about him ; he takes another step. And so he goes on step by step, his conscience gradually yielding, here a little and there a little. The soul dwindles away to a mere speck. Selfishness finally acquires full sway and manifests itself in crying out, "More profits! More profits!" Thus the pure and noble youth has falK-n a victim to our nefarious system, has become transformed into a veritable demon, a money mad maniac, the enemy and scourge of society. I know it is said that our great captains of industry have performed a most important and beneficent function, and that the evils that afflict society are necessary evils and could not have been avoided. Well, be it so. I have no desire to dis- cuss this phase of the subject so far as the past is concerned. There can no good come of "crying over spilt milk," nor in spending time trying to place the responsibility for the spilling 1 . But, drawing the mantle of charity over the past, looking backward just long enough to get our bearings, and standing in the present, the threshhold between the past and the future, let us plan for the future. Taking society as we find it, regard- ing present conditions as the natural outgrowth of the system, which, under all the circumstances, may have been a fortunate incident, an important factor in man's social progress, and ascribing neither praise nor blame to the holders of wealth, let us examine the facts as we find them. Let us then see if we can devise some remedy for the evils that afflict us, the application of which will, to some extent, substitute justice 36 ANALYSIS OF SOCIALISM for injustice, plenty for poverty, equal opportunity for special privileges, virtue for vice and happiness for misery. As before stated, the earth with all its resources naturally belongs to the whole people and not to a select few. Man requires air, water and the products of the earth. Deprive him of any of these and he dies. If a great corporation were to gain possession of the air and lay tribute upon all who breathe, it would be no worse, no more unjust than the very wealthy getting possession of the earth, as they have most of it, and laying tribute upon the people who draw their susten- ance therefrom. Since wealth belongs to those "who produce it, and since the very wealthy produce very little of it them- selves, it follows, therefore, that the ownership by a select few of most of the earth with its natural resources, as well as most of the products of man's labor is simply an usurpation. If our reason had failed to reveal the points of injustice in our system, the result would demonstrate very clearly the fact that there has been a great deal of injustice somewhere. It bcomes clear that the great bulk of wealth is held by persons who have not earned it. They therefore hold by sufferance of the law, and society has a perfect moral right to appropriate it for the general welfare. In fact, the proposition that "Human welfare is the highest basis of right," is recognized by leading political economists, and has become too well settled to be controverted. We hear much of "vested rights," as though it were the worst of sacrilege to speak of them except with the most profound respect. But such rights are only legal rights, rights conferred by the law, and when the people decide that the law needs changing, the "vested rights" may soon become invested wrongs. Sometimes we hear people say, "Oh, they are too lazy to work. If they would go to work like other people they might have something." Here let it be remembered that I am not defending the tramp, who by reason of his shiftlessness or dis- couragement caused by his degraded condition, avoids work ; but it is well known that the holders of great fortunes perform practically no productive labor. There are, then, two idle classes, the idle rich and the idle poor. And since all wealth is the product of labor's hand, a very little reflection develops the fact that there is a class between that produces all that they themselves consume, and also all that is consumed by the two idle classes. Since, then, the wealth belongs to those who produce it, this last class has been robbed on both sides. What the tramp manages to get without work is so small that it is hardly worth considering. On the other hand the rob- bery assumes the most astounding proportions, consisting, not alone of what the idle rich consume in necessaries and wanton REVIEW OF PRESENT CONDITIONS 37 luxuries, but by far the greater portion going to make up their enormous profits. Again, let me assure the reader that I use the term "robbery" because that is what it amounts to, with- out intending any reflection upon anyone. My quarrel is against the system, not the men who are its victims. I realize that many of the men whom the system makes actual robbers are men of good intentions, and not infrequently of fairly high ideals. Having, as I hope, discussed the underlying principles of man's social development, and the conditions that now sur- round us sufficiently to give the reader a fair comprehension of our present industrial system, let us pause and inquire, what OL 1.he future? First let us inquire^ what will be the probable outcome if society continues to drift on in its present channel? After studying trust development, as set forth in Chapter III., it is apparent that if we continue in the present channel some great oligarchy of wealth having overthrown, trampled under foot and destroyed commercially all the other great combinations, will sit enthroned, enjoying the fat of the land, and, guided by its interests and its whims, will distribute husks and crusts and skimmed milk to the people, as seemeth it best. To show that the "Standard Oil" group are making strong calculations on being the conquerors, I insert here an extract from "Frenzied Finance," by Thomas W. Lawson : "The success of 'Standard Oil' is largely due to two things the loyalty of its members to each other and to 'Standard Oil,' and the pun- ishment of its enemies. Each member before initiation knows its religion to be, reward for friends and extermination for enemies. Once a man is within the magic circle he at once realizes he is getting all that anyone else on earth can afford to pay him for like service, and still more thrown in for full measure. The public has never heard of a 'Standard Oil' man leaving the ranks. I know of but one case, a very peculiar one, which I shall tell of in my story. While a 'Standard Oil' man's reward is always ample and satisfactory, he is constantly reminded in a thousand and one ways that punishment for disloyalty is sure and terrible, and that in no corner of the earth can he escape it, nor can any power on earth protect him from it. " 'Standard Oil' is never loud in its rewards nor its punishments. It does not care for the public's praise nor for its condemnation, but endeavors to avoid both by keeping its 'business' to itself. "In connection with the gas settlements I made with 'Standard Oil' it voluntarily paid one of its agents for a few days' work $250,000. He had expected at the outside $25,000. When I published the fact, as I had a right to, 'Standard Oil' was mad as hornets as upset, indeed, as though it had been detected in cheating the man out of two-thirds of his just due, instead of having paid him ten times what was coming to him. It is clear that the Rockefeller oligarchy is getting itself pretty thoroughly intrench "d. In the lieht of these revelations there can be no doubt about its indentions, and its methods are certainly such as are well calculated to insure success. This 38 ANALYSIS OF SOCIALISM mighty octopus, powerful in all its parts, in its strongly intrenched position, with all its bulwarks and outer defences reinforced and strengthened by every device which wealth and ingenuity can furnish, seems well nigh invulnerable. It is not by any means entirely certain, however, that it is so. Two great enemies are just now looming up and are all astir, all excitement, the scent of battle is in the air. Already both of these are beginning to marshal their hosts for a great struggle.- The first of these consists of the smaller capitalists, those outside the "magic circle." They are becoming alarmed by the threatening attitude of the great monster. They are becoming terror stricken with the dread of being swallowed. The second of these enemies is the great plain people. The smaller capitalists (or, perhaps I should say the smaller of the great capitalists), comprise a rather uncertain group, beginning with those just outside the "magic circle" and extending downward somewhat indefinitely, (but not including the very small capitalists or middle class). This class is many times more numerous than the one above it, and, as yet, by running pretty well down the dollar scale, repre- sents more wealth than the group above it. But since those of this class are larger in number, and therefore more difficult to organize, and since also the group above them has, for the most part, the control of the manufacturing and transportation business, they are left at a decided disadvantage, if the fight be conducted on strictly commercial lines. Their main hope is in entering the political field and playing the class below them against the one above. It is just barely possible in my opinion that they may, under the guise of breaking the trust and liberating the "dear people," be able to drive out the present oligarchs, seat themselves, and become thoroughly intrenched before the people awaken to realize the fact that they have only changed masters. But I think it far more prob- able that it will amount to nothing more than a feint move- ment, or at the very most an earnest threat that they will assist the people to overthrow the whole capitalistic system, and by that means effect a compromise by which a consider- able number may enter the "magic circle." The oligarchy may thereby become greatly strengthened, possibly double in power. It will then have no commercial antagonist, none but the great plain people. This final consolidation of the capitalistic forces will prob- ably be done very quietly, secretly perhaps. The people may be made to believe that they have scored a great victory, and that that fond dream of the politicians, "the breaking of the trust," has at last been accomplished, that the great monster REVIEW OF PRESENT CONDITIONS 39 has at last been destroyed, never more to raise his hideous form to menace the lives and happiness of a great and prosper- ous people, and much more to the same effect. But what matter to the people whether their masters be ten thousand, one hundred thousand, or one million, so long as they are to be ground into profits. After the masters (those in the protected circle), have absorbed all the wealth of our own country and all the nooks and corners of the earth that have fallen to our lot in the scramble of the nations for markets, and when it is no longer possible to find a nation silly enough to buy more than it sells, then there will be no further opportunity for investment of profits, and then the piling up of profits as such will cease. In such case there might be a little difference to the people whether the masters are a large or small number, for then, there being no more place for invest- ment of profits, the masters will plunge to the utmost limit in luxury, and the larger their number the less of labor's pro- duct will be left for the people. But in either case, their great fear will be the people, and after squandering all they possibly can on their own luxuries, a large part of the remainder must needs be distributed among the people in a way that will enable them to hold their prestige. Special privileges must be granted to favorites and to those who have influence with the people. Very little will be left to the masses. With the continuance of our present system the people have nothing to hope for but to be ruled by some such oli- garchy as I have here described, and nothing to expect from our rulers but crusts and virtually abject servitude. Mon- archs have sometimes treated their subjects kindly, but an oligarchy never. Nothing can reasonably be expected but the most wanton luxury and extravagance on the one hand and the most degrading poverty and servitude on the other. The monarch may desire the esteem of all his subjects but an oli- garchy cares not for the respect of those outside its own circle. Effect follows cause, and if a wealthy caste, say a million or half million people, having come into power by means of a scientific system of legalized robbery, holding their position by an organized system of corruption, accustomed to the most wanton luxuries with its accompanying vices and excesses, and used to thinking of the common people as far beneath them, it would certainly be a new thing under the sun if a caste trained in such a school should develop a degree of unselfishness and sympathy for, and kindness toward, the common people, that would prompt them to begin to deprive themselves of any considerable portion of the luxuries which they are wont to enjoy and use it in bettering the people's condition. 40 AXALYSIS OF SOCIALISM Seeing the present regime promises nothing but slavery to the people, we turn now to inquire what they may do for themselves. The common people, having so great a majority, if they would thoroughly unite and organize, could do almost anything that is within the range of human possibility. Hav- ing the ballot in their hands, they could soon capture the government and make it a government of the whole people instead of a few. To "know their rights and knowing, dare maintain," is the matter of first importance. Since the wealth is the people's, and human welfare is the highest basis of right, they would be perfectly justified in tak- ing possession of the whole wealth of the nation, if by so doing they could advance the general welfare, and dividing it equally among the whole people. Or, if they found it practic- able, they might vary the share of each one according as he is more or less deserving. Exact justice would, of course, be impossible, but providing for the general welfare would cure all defects. There are two general ways by which the people might do this: One, by a sudden general confiscation and dis- tribution ; the other, by a gradual process which might be accomplished by heavy graduated income taxes, inheritance taxes and other forms of taxation,* providing by legislation for higher wages to be paid to the workers and a great many other devices, but it would all amount to the same thing, confis- cation, since it would only be a different method of taking the wealth from those who now have it, or it might be more per- fectly termed a restoration, since it would be to a great extent a restoring of the property to its rightful owners. Now, the question that comes in here is, would such a course be wise? That is to say, would it advance the general welfare? I should not like to say that it would not be any benefit to the people. Looking on our present chaotic, anarch- istic form of society, with all its commercial tyranny, it does not seem that it could be much worse, and yet it might be. I do say, however, that such, a thing would not be worth the doing if we are to go on in the same old way with the same old industrial system. Man has learned the trick of trust formation, and it would not be long till we would have the same picture of millionaires and paupers, etc. The people might enact laws prohibiting anyone from owning more than his share of that form of wealth called "capital." By this means it might be arranged so that each one would enjoy an approximately just share of the product. Possibly the condition of the people might be greatly improved by this method, but there would certainly be found to be some very serious objections. Some of the people would be too indolent or selfish or wanting in intelligence to use their REVIEW OF PRESENT CONDITIONS 41 share of the capital well, or too impracticable or disagreeable of disposition to join their capital with that of others in such business as requires an aggregation of capital. As a conse- quence, production might become very seriously reduced. So large a number of individual stockholders as would be neces- sary to operate a great manufacturing or transportation indus- try, could not work so well together in a competitive struggle with many other groups. Great enterprises would be likely to lag under such a regime. It might be arranged so as to allow one person to own $50,000, $100,000 or $500,000, but that would soon divide the wealth among a number, each holding the maximum amount, or nearly so, while practically all the rest would have next to nothing. The same picture of wealth (in smaller piles), on the one hand and poverty on the other. Competition is exceedingly wasteful. Being based upon selfishness, any form of it must be attended with more or less of rapacity and ruthlessness. In a sense it transforms human beings into savage beasts, preying upon each other, and noth- ing can prevent it but such a detailed system of governmental intervention as would render it a new system with the com- petition feature practically eliminated. The fact is, competi- tion is dead-, and any effort to restore it as a living force, by bolstering up with human laws, must prove as fruitless as to attempt to restore life to a corpse by setting props about it. The trust, which is the final culmination of the competi- tive system, has introduced co-operation, a much more effect- ive industrial principle than competition. It has been proven to be far more economical and successful ; it suggests what seems to me the only possible way out of our dilemma, and that is to expand the trust so as to include all the people on an equal, an equitable footing. In such case, the co-operation being based on unselfishness, would be attended by qualities of human action directly the opposite of those mentioned as attending competition. It is along these lines that we must look for a remedy for the ills that afflict society, for competi- tion fails utterly to furnish anything worthy of our consider- ation. The fact is that the trust has broken competition, and it cannot be mended, and I feel sure that after we have made the right application of the new principle which the trust has introduced, we will consider it not worth the mending, in fact will be glad that it cannot be mended. I say competition is broken. I mean so far as the capital- ists are concerned. The mass of the people, the manual laborer who works for a wage, the professional man, the small manufacturer, the retail dealer and the farmer all virtually wage workers, who, if not for a daily wage, virtually work by 42 ANALYSIS OF SOCIALISM the piece are still subject to the same law of competition. It is only to a very limited extent that these have availed them- selves of the use of the trust principle, this being especially true of the farmer. CHAPTER VI. GLANCING BACKWARD AND FORWARD. Before taking up the new line suggested, let us briefly glance backward, and then forward. We have examined the philosophy of the formation and workings of the competitive system. We have found that it was born and nurtured in selfishness, was attended with all the characteristics of selfishness, and has grown and developed until it has finally culminated and ripened into the trust, the most striking personification of selfishness that could be imagined. The competitive system through its modern capi- talistic development, has performed a great work in the world's progress, not so much in providing for present human happiness, as in bringing society to a point where this may be realized in the future. Human progress moves on, though the competitive road, for a large part of the people, is a hard road to travel. This ruthless, wicked system has now found its end in its own culmination, that most selfish monster, the trust. The trust has both substituted and proven the effect- iveness of the new principle, which, when rightly applied, will lay the foundation for a new civilization, in which unselfish- ness with all its attendant characteristics and virtues, may take the place of selfishness with all its attendant character- istics and vices. When I contemplate all this my heart is thrilled with admiration ; my soul is filled with awe, and I am led to exclaim, "The hand of God is in all this! Even now the Divine hand is beckoning us onward ! The Divine finger is pointing out to us the pathway to the new civilization." We have traced man's industrial development, beginning* with savagery, running through all the successive stages of chattel slavery, serfdom and the wage system or capitalism, and now see capitalism rapidly approaching its climax under trust combination. We have examined these three industrial forms and found them to be so many methods of exploiting the labor of the workers. Passing by chattel slavery, which is slavery pure and simple, we come to serfdom, which also we find to be slavery, not so simple, but under the guise of a partial freedom. It GLANCING BACKWARD AND FORWARD 43 varies little from the simple form except in outward appear- ance. Then coming to the wage system we find what seems at first, and what has passed for centuries as entire freedom. But when we come to analyze it we find that it too is slavery. Under all these forms there has been much injustice perpe- trated against the workers. At first glance it would seem that the chattel slave had the greatest reason to complain, the serf the next, and the wage slave the least. Then, when we look at it from a purely financial or dollar standpoint we find it reversed. Each enslavement was a robbery whenever and by whatever the value of the slave's labor exceeded the value of his food, clothing, shelter an4 protection. Now, since under both chattel slavery and serfdom there is often ho excess, and since the greatest excess is found under wage slavery, there- fore, looking from this point of view, the wage worker of the present has the greatest grievance. But there is another and higher view point, and from this it is again reversed. The consciousness of being held as a mere thing, mere property, a mere commercial chattel, subject to every whim of a master, was extremely degrading to the mind and self respect of the slave. The greatest injury was to his manhood. Under serfdom there was a little of the forms and outward appearance of liberty. It is probable that the serf did not often realize how little liberty he had, and although the blow to his manhood was not so great as to that of the chattel slave, yet it was. his greatest injury. The wage slave escapes most of the degrading features of chattel slavery ; nevertheless, the money standard for meas- uring people is adhered to to such an extent, and the material condition of a large per cent of our wage workers, especially in the great cities, is so low, and they are made to feel their inferiority and degradation so keenly, that, notwith- standing the extent of the financial robbery to which they are subjected, it may be truly said that their greatest injury is to their manhood, although the injury in this respect is not so great as that done to the chattel slave. There may, however, be another reversal of this if present tendencies continue. Take the California farm hand, for instance, who carries his blankets with him and sleeps wherever night overtakes him ; always called a hobo, except where he stops and works long enough and hard enough to prove that he is not. Rather hard to develop manhood under such circumstances. Again, look at the sweat house or factory worker with his pitiful wage, his family crowded into a vile, reeking tenement with only a chalk mark to separate them from others. Think of the many thousands of these and of 44 ANALYSIS OF SOCIALISM the thousands of children whose young lives are being ground into dollars. The condition of thousands upon thousands is so desperate that it were better to take one's chances as a chattel slave under such average conditions as existed in the generations past ; and millions more are in circumstances not much different. In all these there is not much opportunity to develop manhood. Since, as we have seen, there could have been no civiliza- tion without labor, and since the condition of the workers has been, on the whole, better than to have remained in savagery, therefore it is better for the workers of all classes that civiliza- tion came by the road it did, than not to have come at all ; society has been greatly blessed by the labor that has been performed. Considering the nature of man, civilization must needs have travelled by the road it has ; and here we observe that the exploiting principle, like the competitive principle, is based on man's selfishness and occupies an important place in social development through the primitive stages of society, which includes the present and must include so much of the future as is governed by these selfish principles. There are many things in our present social status to indicate that society is getting about ripe for a change. Prominent among these are, first, the destruction of competi- tion and the substitution and proving of the new principle, co-opefation, and, secondly, the continually increasing number of the wretchedly destitute and miserable. About all that now seems wanting in the ripening process is that the people, the millions of great plain people, with ballots in their hands, shall learn what the trouble is and the remedy. When they do this we will be ready to move forward. It is in the hope that I may be able to do something toward hastening this educational work that I devote my limited strength to writing this work. By the perusal of what has gone before I trust the reader may obtain a tolerably thorough and comprehensive view of the position that society now occupies, may be able to see that there is no turning back, and that our present order promises nothing but increased injustice, hardship, misery and degradation for nearly all the people, and that the only hope that presents itself is to leave the old hulk and move forward. Of course, the reader will want to know something of what the line of march shall be and the reason for it; and that we shall attempt to make plain in our exposition of Socialism, a theoretical system of society in which it is proposed that the new principle, co-operation, now used selfishly by the trust, shall be used unselfishly as the chief industrial principle. GLANCING BACKWARD AND FORWARD 45 Starting with human nature as it is, and knowing that the character of man is always determined in great measure by the industrial principles that he practices, it is hoped that by the introduction of industrial principles based on unselfishness, the good that is in human nature may have an opportunity to rise instead of being checked and smothered as is the case to-day. We cannot go back to the old log cabin days ; nor do we desire to. We have learned a better way. We cannot restore competition; and why should we desire to? We cer- tainly should hope that there is a better way. There is another very important point that we must con^ sider before closing this chapter; and that is the danger of anarchy if the process of wealth concentration is permitted to go much further. If our civilization would make sure of avoiding the fate of Rome, that is to say, of falling by the weight of its own rottenness and corruption, she should beware of continuing much further on the road she is now travelling. Glancing at the history of all the great nations of the past we cannot but feel that there is undoubtedly a great danger ahead. Considering the whole situation as we have it now before us, the important question is not whether Socialism can be made to work easily, but whether it can be made to work at all. The case resolves itself into this : That the choice lies between Socialism on the one hand and capitalistic tyranny and slavery on the other, with a very strong probability of ending in a period of disastrous anarchy. We are in a dilemma, and Socialism is the only way out. Socialism must come sooner or later. The question is, will the people be wise enough to introduce it without the lesson of a great catas- trophe ? Some years ago a populist writer illustrated the danger ahead by saying that society is in the Niagara River drifting rapidly toward the Falls, and that our only escape is by cut- ting our Welland Canal. Transforming and enlarging, we have it thus : Lake Eric represents competition in which society has been sailing for the past four thousand years. The upper Niagara is the narrowing of the people's liberties that followed the amassing of great fortunes consequent on the introduction of machinery. The great falls or cataract repre- sents the catastrophe that certainly awaits us if the trustifi- cation continues. The waters beyond the cataract represent the condition of society beyond the point where calamity must be experienced or averted. Now then, our old ship of state has left the old lake where the sailing was not always smooth, has passed the first rapids, where she parted from competition never more to return to it. We are now in rough waters, 46 ANALYSIS OF SOCIALISM moving at a rapid rate. On our entrance into the river an alarm was sounded but little heeded. . Since we entered the rapids an ever increasing number have kept the alarm bells continually ringing. Recently there has been a great awaken- ing. The great body of the passengers have become aroused and are manifesting signs of great uneasiness. In fact, there is somewhat of a flurry. "What is to be done?" is heard from all quarters. Listen. First, keep cool; don't get excited. The danger is near, but may be easily averted if only we act promptly, and earnestly, and unitedly. Our cherished old ves- sel is imprisoned in turbulent waters. We cannot retrace our steps. We are drifting madly toward the great cataract, where we must soon make the plunge to our destruction unless we act at once and do something to avert it. There is just one thing we can do. We must at once bring our vessel to anchor and proceed to dig our Welland Canal, so that we may be able to conduct our ship safely around the great cata- ract, and, may we not hope, to successfully readjust our sails in a manner suited to our environment and be able to steer proudly out into the grand and beautiful lake beyond? The success of this canal enterprise will require the com- bined intelligence of the whole people. It will not do to trust to leaders knowing and doing the right thing. To adopt such a course would be to play into the hands of the enemy. The influence of wealth would secure leaders that would be in league with the wealthy class, and they would only laugh at all warnings. "This is fine! Who cares for the rapids? We do not see any falls ! Let her drive ! Whoop, hurrah !" The only safe course is for the people, or a very large proportion (the only danger is that it will not be large enough) of them, to become well informed on this subject, for as many as pos- sible to acquire a thorough knowledge of the underlying prin- ciples connected with-it, and their relation to each other, and, in short, the philosophy of the whole situation. There are few of those of even very meagre education who would not be able to understand these principles if only they would apply their minds earnestly. It is far easier to learn principles than men. If the people understood the principles thoroughly a way could be provided wherebv they could hold the leaders whom they elect in strict line with those principles, and it would be much more satisfactory than our present method, which is to guess at the men (it is the be^t we ran do with -men), and trust to them to understand and follow right principles, DEFINITIONS OF SOCIALISM 47 CHAPTER VII. Were half the power that fills the world with terror, Were half the wealth bestowed on camps and courts, Given to redeem the human mind from error, There were no need of arsenals or forts. Longfellow. ORIGIN AND DEFINITIONS OF SOCIALISM. As to origin, it doesn't matter whether the Socialistic idea be an evolution, invention, doctrine or discovery ; the idea is lere, and what are we going to do about it is the question. "A theory of society that advocates a more precise, orderly and har- monious arrangement of the social relations of mankind than that which has hitherto prevailed." Webster. "The abolition of that individual action on which modern societies depend, and the substitution of a regulated system of co-operative action." Imperial Dictionary. "The ethics of Socialism are identical with the ethics of Christian- ity." Encyclopedia Britannica. "1 he answer of Socialism to the capitalist is that society can do without him just as society now does without the slave owner and the feudal lord ; both were formerly regarded as necessary to the well being and even the very existence of society." Prof. Clarke. "No thinking man will contradict that associated industry is the most powerful agent of production, and that the principles of association are susceptible of further and beneficial development." John Stuart Mill. "Socialism being the product of social evolution, the only danger lies in obstructing it." Rev. F. M. Sprague. "Socialism is the idea and hope of a new society founded on indus- trial peace and forethought, aiming at a new and higher life for all men." William Morris. "Government and co-operation are in all things and eternally the laws of life ; anarchy and competition, eternally and in all things the laws of death." John Ruskin. "To the foregoing the writer would add another definition of Socialism. Socialism would solve the labor problem by guaranteeing to the producer the full product of his toil ; the prison reform problem by removing the incentive to crime; the temperance problem by taking out of the scheme of life the only incentive which ever induced any man or woman -to keep a saloon, a gambling house or a brothel ; the immigration problem by establishing a system of industry in which every day of idleness would be (as it is now) a loss to society, and in which every day of added labor would be a decided gain to all the inhabitants of the com- monwealth. In a word, Socialism would make possible a fulfillment of the teachings of the greatest of all Socialists, in universal brotherhood among men, peace on earth, and plenty for all the children of a common Father." A. M. Dewey. Who Is a Socialist? By Ella Wheeler Wilcox. "Who is a Socialist? It is the man Who strives to formulate or aid a plan To better earth's conditions. It is he Who, having ears to hear and eyes to see, 48 ANALYSIS OF SOCIALISM Is neither deaf nor blind when might, roughshod, Treads down the privileges and rights which God Means for all men; the privilege to toil, To breathe pure air, to till the fertile soil The right to live, to love, to woo, to wed, And earn for hungry mouths their need of bread. The Socialist is he who claims no more Than his own share from generous Nature's store; But that he asks, and asks, too, that no other Shall claim the share of any weaker brother, And brand him beggar in his own domain, To glut a mad, inordinate lust for gain. The Socialist is one who holds the best Of all God's gifts is toil; the second, rest. He asks that all men learn the sweets of labor, And that no idler fatten on his neighbor; That all men be allowed their share of leisure, Nor thousands slave that one may seek his pleasure. Who on the Golden Rule shall dare insist, Behold in him the modern Socialist. In order to make clearer the definition of Socialism, and the objects which it is intended to accomplish, and also for future reference in this work, we insert here an extract from an address by Frances E. Willard, delivered at the National W. C. T. U. Convention at Buffalo, in 1897, which is as follows : "Look about you; the products of labor are on every hand; you could not maintain for a moment a well ordered life without them ; every object in your room has in it, for discerning eyes, the mark of ingenious tools and the pressure of labor's hands. But is it not the crudest .injus- tice for the wealthy, whose lives are surrounded and embellished by labor's work, to have a superabundance of the money which represents the aggregate of labor in any country while the laborer himself is kept so steady at work that he has no time to acquire the education and refine- ments of life that would make him and his family agreeable companions to the rich and cultured? The reason why I am a Socialist comes in just here. "I would take, not by force, but by the slow process of lawful acquisition through better legislation as the outcome of a wiser ballot in the hands of men and women, the entire plant that we call civilization, all that has been achieved on this continent in the 400 years since Colum- bus wended his way hither, and make it the common property of all the people, requiring all to work enough with their hands to give them the finest physical development but not to become burdensome in any case, and permitting all to share alike the advantages of education and refine- ment. .1 believe this to be perfectly practicable; indeed, that any other method is simply a relic of barbarism. "I believe that competition is Jtoomed. The trusts, whose single object is to abolish competition, have proved that we are better off with- out it than with it, and the moment corporations control the supply of any article they combine. What the Socialist desires is that the corpor- ation of humanity should control all production. Beloved comrades, this is the frictionless way; it is the higher law; it eliminates the motives tor a selfish life; it enacts into our every day living' the ethics of Christ's gospel. Nothing else will do it; nothing else can bring the glad day of universal brotherhood. DEFINITIONS OF SOCIALISM 49 "Oh, that I were young again and it would have my life ! ^ It is God's way out of the wilderness and into the promised land. It is the very marrow of Christ's gospel. It is Christianity applied." But the definition that I prefer as a working basis in the treatment of this subject is that given by Richard T. Ely, Pro- fessor of Political Economy and Director of the School of Eco- nomics, Political Science and History, in the University of Wisconsin : "Socialism is that contemplated system of individual society which proposes the abolition of private property in the great material instru- ments of production, and the substitution therefor of collective property, and advocates the collective management of production, together with the distribution of social income by society, and private property in the larger proportion of this social income.'' This definition, however, leaves in the background the central point in Socialism, which is the substitution of co- operation for competition. Following the line of Professor Ely's arrangement, let us elaborate the definition somewhat. Elements of Socialism. 1. Common Ownership. The enlargement of the powers of government until it shall own nearly all the capital and control the rest. The government must own all the capital in those industries that tend toward monopoly. It may be found more convenient, especially in the initial stages, to permit some of the smaller branches of production to be conducted by private enterprise ; and besides, Socialism proposes to make people happier ; and if it should be found that there are persons who have become so habituated to a certain way of procuring a living that they could not be happy in any other way, then it would be the business of the government to make provision ac- cordingly ; but to permit those engaged in private enterprise to receive more for their labor than those in the public employ, would be contrary alike to sound policy and the spirit of Socialism. On the contrary, such a course should be pursued as will continually reduce private enterprise to narrower and narrower limits until it entirely disappears. 2. Common Management. Under our present system goods are produced for profit and often the profits increase with the scarcity ; but under Socialism goods will be produced for the sole purpose of supplying the wants of the people, and the greater the supply the greater the cause for rejoicing. It will be the duty of the government to provide for each person who is able, to earn his living at some useful employment, and in doing this it will be the further duty of the government to use its utmost endeavor to so distribute the various occupa- 50 ANALYSIS OF SOCIALISM tions among the people as will best promote the happiness of all. 3. Distribution of Income by Common Authority. One of the chief objects and strong features of Socialism is its distributive justice. One of its leading .principles is equality; but it requires that equal enjoyment of social income must be preceded by equal, effort in production. If a man will not work neither shall he eat. The theory of Socialism regards all capital as the common inheritance, so that those who are dis- abled and incapacitated share equally in its common ownership. It also regards the state as an insurance company, insuring all its members against disability of every kind, so that those who are unfortunate may share their full portion and not experience the humiliation of feeling that they are paupers. 4. Private Property in the Larger Part of Income. ^ ne advocates of capitalism claim that private property is neces- sary to man's highest development ; and Socialism replies that capitalism fails to furnish each one with the private property he needs. Socialism proposes to provide for each one to hold for his own private use a just share of the social income. The following from Professor Ely's work, "Socialism and Social Reform," page 38, is inserted to show the character of the advocates of Socialism : "It is essential to the comprehension of the nature of Socialism to know that it is a system of industrial society which has found advocates among many gifted, learned and very practical men. The leaders of Socialism in the present century have generally been men of extraor- dinary capacity, placing them far above the ordinary man." To show this author's high opinion of Socialism we quote from page 145 : "It may be said, indeed, that nothing in the present day is so likely to awaken the conscience of the ordinary man or woman, or to increase the sense of individual responsibility as a thorough course in Socialism. The study of Socialism has proved the turning point in thousands of lives and converted self seeking me*n and women into self sacrificing toilers for the masses." Socialism is especially attractive to poets, artists, authors, scholars, philosophers and humanitarians. Until within a very few years back it was very unpopular, but now its popularity is increasing with an accelerated velocity. People no longer require to be reassured that Socialism .does not mean anarch- ism and everything that is hateful and dangerous. One can now avow himself a Socialist without having the word "Shame !" hurled into his face. A few years ago a Socialist writer could show that he was in good company by scraping together a list of a few renowned and untarnished names like those of John Ruskin, William Morris, Walter Crane, Hall Caine and William Dean Howells, but now it is different. DEFINITIONS ANARCHISM 51 Now the people are becoming so dissatisfied with present con- ditions and are turning to Socialism to such an extent, that our leading papers are finding it necessary, in order to hold their patronage, to advocate "Socialism or something like it;" for publishers must offer for sale what the people want to buy, or go out of business. What is Not Socialism. I. Anarchism. Anarchism is a proposed scheme of society in which there shall be no physical force or compul- sion, the only restraint being that which each individual puts upon himself. Practically, anarchism is the absence of all law, of which the history of the past furnishes numerous instances, and these were almost invariably attended with crime and bloodshed owing to the presence of a considerable turbulent and criminal element. This fact has caused the word "Anarchy" to become associated with scenes of violence until it has become very difficult for us to disconnect the word from all that is vicious and dangerous and the fact that anarchy seeks the same equality as Socialism, has caused the two to become somewhat confused in the minds of some, bringing Socialism to that extent into disrepute ; and it cannot be disputed that capitalism has done its utmost to encourage the misapprehension. The original meaning of anarchy or anarchism does not include the idea of violence. It is easy to imagine a people of so high a type morally that they could dwell together harmoniously without the necessity of exer- cising any compulsion or restraint upon any of its members. Accordingly we find such writers as Count Tolstoi and Prince Kropotkin under the name of anarchism spinning fine theories and picturing a beautiful far-away society where the only law shall be the law of Christ and the only restraint, self- restraint. Such writings sown broadcast among a poverty- stricken, ignorant and more or less criminally inclined people, smarting under political and industrial tyranny caused 'by unjust laws, can have but one effect. With such a picture and such a people, and a few unprincipled leaders to harangue them, they become easily imbued with the idea that the law is their bitterest enemy, and that the true remedy for the ills that afflict society, is to be found in the abrogation of all law. Since anarchism is negative and has little or nothing in the way of a reconstructive plan, these people are left to look for their own remedies, and the bomb is a natural result. The criminally inclined always smart under the restraints of law, and often exert an influence on those who are more peacefully inclined. 52 ANALYSIS OF SOCIALISM This "beautiful theory," called philosophic anarchism, presents a conception of what may be a remote future possi- bility. The picture is drawn on a high moral plane to be sure, but with a very unsightly background ; for I understand that all anarchistic philosophers either declare with Tolstoi in favor of abandoning all pursuits excepting agriculture and handi- craft, thus doing away with machinery entirely, or advocate social theories which would forbid its use excepting on a very small scale. They would take us back to "the good old log cabin days," or the mud hut, or the shack, and it is not hard to find these even now. The two conceptions are incongruous. I fear that such a high moral plane could never be attained in the midst of a material environment so semi-barbaric and rude. But all these foolish speculations might be harmless if it were not that the leading feature is to do away with the law. Anarchism proposes little or no organization, not even an organized effort to disorganize our present society. They don't try to capture the government in a legal way that they, may decide by a majority vote to do away with all govern- ment and cease voting. Organization is inconsistent with their principles. Anarchism is the result of capitalism on the principle that one extreme leads to another. It is characteristic of ignorance that it always runs to extremes. In France, before the Revolution, the people became aware that they were being trampled into the dust by the king, the nobility and the priesthood, and they imagined that when they had finished killing all these aristocratic classes they would be happy. And so, now, there are people so ignorant that when they learn that all the injustice and misery which they suffer is the result of pernicious laws they go to the extreme of sup- posing that all laws are necessarily bad, and foolishly imagine that their destruction would usher in an era of happiness. Anarchism is the result of a good thought, misappre- hended and misapplied. The good thought consists of a con- ception of that very high ideal of society, a society in which the moral plane is so high that compulsion by physical force is no longer necessary. The misapprehension consists of an incoherent undertanding of what constitutes a necessary part of this ideal. As nearly as I can gather, the anarchistic philosophers, from contemplating the absence of penal laws, which this ideal involves, fell into the error of considering all laws obnoxious and at enmity with it. Recognizing the fact that law is but a rule of action, without which there can be no organization or concerted action, they rejected these from their creed, counting the prescribing of one's action by DEFINITIONS COMMUNISM 53 any other person or persons, even with his own voice and consent, as a disturbance of his happiness. Then, it would seem, from this they came to consider the absence of law as the cause of the high moral plane. Thus, by a loose-jointed, slip-shod jumbling of ideas, they evolved a distorted ideal. In truth, however, the absence of penal law is only an inci- dent to the high ideal and not the cause of it. The beauty and practical utility of the conception is in the moral virtue of society and the absence of a necessity for penal laws is given as a measure of that virtue. It is a great mistake to suppose that one's happiness is in the least reduced because he regulates his conduct by rules made by others, in the mak- ing of which he has or has not a voice, provided such rules are agreeable to him and such regulation is entirely volun- tary on his part; and since these rules must be presented to- him, subject to the approval or disapproval of his judgment, he has perfect liberty. Penal laws for the restraint of wrong doers do not affect his liberty or his happiness ; and this view of the matter saves to society another ideal that anarchism throws to the winds, which is very important, even for the beauty there is in it, but infinitely more so for its practical utility. I mean that of perfectly concerted action. In the matter of practical utility the former of the two ideals we have just mentioned may be considered the captain of all ideals, and the latter, the first lieutenant. Human virtue and concerted action are alike absolutely essential to society, and to dismiss the lieutenant as anarchism proposes, could have no other effect than the dissolution of society. Having misapprehended and misassociated this highest ideal and discarded its indispensable assistant, the anarchistic philosophers proceeded to do what? To formulate a plan for the reorganization of society? No, hardly that: organi- zation implies rules for concerted action ; such rules are simply laws, and laws are what they are trying especially to avoid. They hardly dare suggest a method or plan of action of any kind, because it would be virtually a law. The fact is, their theory carried them backward beyond the confines of civilization ; but having tasted the sweets of civilized life, they did not like their surroundings ; so they concluded to recross the line and come back just a little way. A very little reflection was sufficient to show the impossibility of any civilization without some concerted action, some rules or laws, and they seem to have imagined that by their small group society they might reduce the laws to the minimum and do away entirely with the most objectionable form, penal laws. Since their theory cuts off organization, even in doing iway with our present system, they could only advocate the 54 ANALYSIS OF SOCIALISM idea that its dissolution would eventually come about some- how, giving opportunity for the application of their "beauti- ful philosophy of anarchism." This "beautiful theory," especially that part which relates to the abolition of all punishments, is attractive to the crim- inal classes, who, becoming impatient for its realization, fall upon the group idea as a way of getting rid of our present system. Accordingly, they begin to group themselves into ways and means committees, and with -their pockets full of bombs, proceed to hasten the dissolution of society. No won- der so many find it difficult to understand the teachings of anarchism ; its doctrine seems to be mostly negative. 2. Communism. The term communism includes any form of common ownership society which is merely local in its operations. In various parts of the world communistic experiments have been tried. A very large number of these communities or colonies have been planted in the United States. Most of them failed. There were a great many reasons for these failures. A very large proportion were religious societies. Many of them were drawn together by what other people call fanaticism of one kind or another, and it was said that when the fanaticism died away there was not enough adhesiveness to hold them together. The influence upon the young of their outside neighbors and of the outside inducements in a comparatively new country, the inclination of people to change from place to place, a change often neces- sary for health, strife among leaders and personal bicker- ings due to the smallness of the communities these were all fruitful sources of disruption. But .there is little in the his- tory of these societies that is of any value in. the discussion of Socialism, excepting on one point, and that is that getting the men to work satisfactorily was the least of the difficulties with which they had to contend. 3. Unionism. As little similarity as there is between unionism and Socialism, we often hear people say when the subject of Socialism is mentioned, "Oh, I don't have any use for the unions." As a matter of fact, they have very little in common, so far as principles and methods are concerned. True, some Socialists are labor unionists, and vice versa, some labor unionists are Socialists. Both are organized to fight a common enemy the capitalistic system, but their methods of warfare are very different. Unionism acknowledges the rightful supremacy of capitalism, Socialism denies it; union- ism asks for part of the rights of those within its own circle, Socialism demands the full measure of justice to all the people; unionism petitions for redress of grievances and pro- DEFINITIONS UNIONISM 55 poses to remain subject to capitalism; Socialism means com- plete revolution and proclaims a war of extermination against capitalism. This may sound ferocious. But don t be alarmed ; it is only capitalism that is to be exterminated ; the capitalist himself is to be left free to breathe his part of the pure air, drink his part of the pure water, receive and enjoy his part of the product that labor draws from the beautiful green earth and bask in his part of the pleasant sunshine, just like anybody else. Socialism is pre-eminently for peace. It is much more peaceful than unionism. Unionism relies on brute force methods. In the past unionism often went into the fight armed -only with the fists or at most with clubs, stones and brickbats, and, of course, it was defeated when it came in contact with bayonets. Now, pitting its dollars against those of capitalism, it sits down quietly and thinks to starve the enemy into submission. This would be about as foolish, were it not for two circumstances ; first, the greed of the capitalists, who are often ready to compromise in order to resume the accumulation of profits, and second, the fear that refusal of the union's demands will drive it to political action and lead it to Socialism. Socialism proposes that .the many workers pit their ballots against the ballots of the idle few. Unionism is valuable chiefly as an educator ; and, strange to say, its best lessons are found in its failures. Capitalism understands this perfectly. Capitalism doesn't want the workers to learn. She also knows that the average unionist is pretty well satisfied if he can gain one strike in about four or five and can manage to get along if he can gain one in ten ; therefore capitalism permits the unions to gain a strike occasionally or think they have gained it. If all the charges against unionism are true, it is only a further reason for Socialism. To show how the education comes in we insert the fol- lowing from "The Appeal to Reason," September 24, 1906: "'Smashing the Union' in Australia.- 'The Crushing Out of Labor Organizations Has Resulted in the Development of a Powerful Socialist Party.' Hugh O'Neil in Kansas City Independent, organ of the National Manufacturer's Association, and reprinted in the National Civic Feder- ation Review. "It was Malcolm Donald McEacharn, ship owner and capitalist, who delivered the Commonwealth of Australia to the Socialists. He is the one conservative on the continent that the Socialists fight without malice. "Of course, McEacharn didn't want Socialism. He only wanted to break the power of the trades unions. He thought that their exactions had become intolerable, and there was some justification for that view. Strikes were common, and frequently the cause of quarrel was trivial. But the strikers were always successful because the country was being flooded with British money, and the voice of the boomster was abroad in the land. The union leaders were ignorant of all economic laws, and they 56 ANALYSIS OF SOCIALISM mistook the existing condition for one of natural prosperity. (That's where they made their mistake.) "McEacharn knew better than that. He knew that the burst would come sooner or later, and he prepared to attack labor on a falling market. He figured to smash the unions and remove the heel of aggressive democ- racy from the throat of capital. A partial victory was not what he wanted. He was after the whole hog. He got it. (That's where he made his mistake,) "The unionists were lions led by asses. McEacharn knew that. Time after time the shipping union made demands upon his company ; time after time he granted these demands, with smiling readiness. But day after day he went on building together the units of a force to fight unionism that was destined to sweep organized labor out of existence. The plan was colossal, but the solid patience with which in the meantime he bore the galling exactions of the trades was quite as great. "And then, one day, he loosed his thunders and struck hard and straight and true. He chose the time of battle, the cause of battle, and the place of battle. The unions chose nothing. They were arrogant with riches. "The cause of quarrel was childish, as McEacharn meant it should be. A difference arose between the quartermaster and the steward of one of his coasting steamers over the charms of a stewardess. The captain, to settle the difficulty as he thought, poor man discharged the sailor. The union demanded his reinstatement. McEacharn, knowing what the reply would be, offered to put him on another ship. The union demanded reinstatement on the same ship. McEacharn in very courteous terms pointed out that that ,was impossible. Then the asses who led the lions told him that unless the reinstatement was effected within twenty-four hours they would call the crews off all his ships and order a general strike. "Then, like a flash, McEacharn unmasked his guns. Back went the reply that the unions might strike and be damned. "The strike was ordered. And then there followed a battle grim and great. Union after union was called out, ship after ship was laid up, state after state was involved in the quarrel, until the whole continent stood under arms. In less than four weeks the fires of nearly every coast- ing steamer were drawn. The trade of Australia was paralyzed. Four hundred thousand unionists were idle, and every man of them was drawing half pay. Also every unemployed man who looked like becoming a free laborer was paid a weekly allowance from the general fund to prevent remanning the ships. "But the Shipowners' Union that McEacharn had organized didn't even try to reman the ships. The land boom had reached its limit, trade was declining, very large coal reserves had been laid up, the funds and membership of the unions were known to a dollar and a man. The ship- owners simply sat down on their hunkers and waited. "Starvation won easily. Ten weeks after the first shot the unions capitulated to the grim foe hunger, that before then had bowed the neck of many a proud city. McEacharn had meant to break the unions. And they were broken all right. "Funds gone, membership decimated, courage wilted, the once great trade unions of Australia were counted out. "The capitulation was announced in the biggest public hall the labor leaders could get. John Hancock, big bodied and big hearted the finest platform man in Australia rose in that hall of silent hundreds to tell the men that they must return to work on the best terms they could get. It was the shortest and most pregnant speech he ever made in his life. DEFINITIONS UNIONISM 57 'Friends,' he said, 'men of Australia, we have not been beaten; we have been starved into submission. Unionism is dead, but anything can hap- pen in a democracy, and from the ashes of the funeral pyre that the ship- owners have lighted will rise the phoenix of our liberties.' "Nobody knew what he meant. It is doubtful whether he knew himself. But it sounded large and fine, and something with that sort of sound was just what those depressed people wanted that night. But one year later big John Hancock took his seat in Parliament the first labor member sent in by the first labor party in Australia. "Vanquished in the industrial war, the members of the ba'ttered trades unions had reorganized their forces on a political basis aad sought to win by the ballot the privileges capital had denied them. Someone dis- covered that where all men have votes and the bulk of men are wage earners they only have to decide among themselves what they want from the state to get it. "That was only ten years ago. And now they have gotten nearly all they wanted. Think of it. Eleven years ago the unions were bat- tered, dead, done for. To-day their direct lineal successor owns the whole blessed commonwealth of Australia. "They attacked municipal councils first, and enforced the minimum wage and eight hour day on all of them. They attacked the state parlia- ments next and gr.ined factory legislation and old age pensions and com- pulsory arbitration. No factory in the country can now employ child labor or work its people more than eight hours per day, or pay less than the minimum wage fixed by the wages board. In two of the six states the labor party are the government in office, in two others they hold the bal- ance of power, and in two others they are the direct opposition. "But it is their success in the commonwealth parliament the National Assembly that marks out Australia as a Socialistic nation. "In the Senate half the members are pledged Socialists definite servants of the labor party. In the Representatives the direct opposition are pledged Socialists also members of the same party. Compulsory arbi- tration in labor disputes is the law actually operating in two of the states, :;ncl the national legislature has passed a law enforcing compulsory arbi- tration in any labor dispute that extends from one state to another." The above article furnishes a very fitting- illustration of the benefk that sometimes accrues . to the unions from the loss of a strike. Such failures are the most effective lessons to teach them their political power. The beginner may be a little puzzled, however, at seeing that it was published in two prominent capitalist papers; but when he has studied thoroughly the subject of social reform, and learned what an elastic thing it is, he will come to understand what it means. When he has learned that social reform is usually little more than an inflated bubble, labelled Socialism, for the purpose of leading Socialists away from Socialism, he will understand why the above article found space in capitalist papers, why the Australian and New Zealand reform measures are called Socialism, why the Australian Labor Party is called a Socialist party, and why the compulsory arbitration law is paraded in capitalist papers as a great Socialist victory, and will then begin to realize that capitalism has been playing with a card up its sleeve. 58 ANALYSIS OF SOCIALISM CHAPTER VIII. WHAT IS NOT AND YET IS SOCIALISM; OR, SOCIAL REFORM. Under this head is included all proposed governmental measures which are intended as remedies for the evils that afflict society, while at the same time retaining our present social order. Most of these are Socialistic in their tendencies, and this, with the fact that many Socialists favor social re- form as an initial step to Socialism, causes social reform to be regarded by many as Socialism. In England and most of the Continental nations of Europe much has already been done in this line. In New Zealand the social reform forces have full sway and have brought about a great change, and now they are coming rapidly to the front. In this country the public sentiment is looming up very strongly for social reform. Experience, however, shows that it carries with it reaction- ary forces that greatly hinder its operation. With all the good that may be accomplished by social reform, it is only a tacking on of new cloth to an old garment, and the danger is that the rent may be made worse. This lets in the dragging back or reactionary forces. But what is the program of social reform? What Is it doing? What does it propose? What can it do? What is and will be its effect on society? Joseph Chamberlain, who now looms up as the leading English statesman, in rehearsing the great good wrought by reform legislation in that country, said : That in the last half century pauperism had greatly diminished ; that the poor rate had been' reduced to less than half what it was before the new poor law; that crime had diminished in both "quantity and character; that education had been brought within the reach of every child; that protection had been afforded againsl excessive toil and overwork; that the observance of propel sanitary conditions for labor had been universally enforced that trade unions had been legalized so that workmen mighl meet their employers on something like an equal footing in settling the rate of wages ; that the care of the public healtli had been recognized; that the taxes on food and all othei great necessaries had been repealed ; that facilities for trave and intercommunication h^d been greatly extended anc developed ; that opportunities for improvement and recreation had been afforded to all at the expense of the community, anc that wages had increased fifty per cent while the hours of labor had been reduced twenty per cent. He also mentions the diminution in the death rate, and adds: /'An impartial ex^mi nation of the facts and figures here set forth must lead to SOCIAL REFORM 59 the conclusion that there has been a very great improvement in the condition of the people during the period under review, and this improvement has been largely due to the interven- tion of the state and to what is called Socialistic legislation. The acts for the regulation of mines and the inspection of factories and workshops, the Truck Act (preventing the pay- ment of wages in kind), the acts relating to merchant ship- ping, the Artisans' Dwellings Act, the Allotments Act, the Education Act, the Poor Law, and the Irish Land Acts, are all of them measures which more or less limit and control individual action." One of the main items in the program is public owner- ship of such industries as tend to become monopolies. Most of the European governments own and operate the railways, telegraphs and telephones. Most of their great cities, I believe, own their watering and lighting plants, street rail- ways and city telephone systems. In this country the people are becoming awakened on the subject, and already consider- able has been done. But it is in New Zealand that the most decided steps have been taken in social reform ; indeed, New Zealand has been called the experiment station of modern democracy. If the reader will stop at this point and procure a copy of "New Zealand in a Nutshell," it will enable him to more thoroughly understand this part of our subject; but to those who do not find it convenient to do so we \vill state briefly that New Zealand is a province of Great Britain situated in the South Pacific, 1,200 miles southeast of Australia, having an area of 104,000 square miles, with a population in 1901 of 720,000. It consists of two large and several small islands that have a range of latitude extending from the 34th to the 47th parallels of south latitude. The climate is similar to California ; the soil not generally very productive, and the country chiefly adapted to grazing. Quoting from the above- named work : "The soil, while fertile in patches, is only profitable when held in large blocks for cattle and sheep ranches. This ltd to 'land monopoly, and the few soon con- trolled, whereupon the people deliberately came together and- wiped out the millionaire class of land grabbers, and now the motto is, 'No millionaires, no paupers.' New Zealand is no Utopia. Our people do not claim to have reached a final solution of any social problem, but they are trying to intro- duce methods that will make all comfortable, contented and happy/' The people govern, it is said, and it is said also that every effort is made to secure a still better system, but I cannot vouch for the truth of either of these statements. 60 ANALYSIS OF SOCIALISM The story of New Zealand is a pretty picture. Let us examine it somewhat closely and see what we may learn from it. The first, and perhaps most important, lesson is what the workers who have ballots in their hands may do to better their condition. It shows that they can have about what they want when they go at it right. It shows that a great and happy change may be wrought by granting to labor even a small part of what belongs to it. And the workers took it themselves ; or, rather, they asked for it in a way that showed they meant to have it, and got what they asked for but no more, as we shall see presently. It is certainly a beautiful picture as compared with society in this country. Those who but partially understand the Socialist ideal call it Socialism ; and it is a movement in that direction ; but, measured by the true Socialist ideal, it falls so far short that a Socialist can hardly help the sug- gestion that if Satan should slightly neglect the heating and fumigation of some remote corner of his domain, those hap- pening to stray thither would fancy themselves in heaven. Having shown some of the things which social reform is doing, we inquire next, what does it propose to do? We quote from Professor Ely's work, page 255, as follows : "Can we not, in our industrial life, keep what we have that is valua- ble and escape some of the evils which Socialism has so vividly depicted? And let -us frankly, fully, without equivocation, acknowledge the great services which Socialism has in this, as in other respects, rendered society. Can we not carefully, conservatively, add to our social order some of the strong features of Socialism, and yet keep this social order intact? It seems to the author that this is practicable, and the means for doing this he endeavors to describe as a program of practicable social reform, giving merely the outlines. "Those who take up the subject of social reform at the present day must remember that they cannot accomplish much that is permanently valuable unless they start with a full knowledge of Socialism and its ad- vantages, and attempt to realize those advantages. High ideals for the masses have been realized once for all. "Some of the things which we must strive to accomplish in social reform may be enumerated as follows: First of all, we must seek a better realization of productve forces. This implies, negatively, that we should reduce the waste of the competitive system to its lowest possible terms; positively, that we should endeavor to secure a steady production, employing all available capital and labor power ; furthermore, the full utilization of inventions and discoveries by a removal of the friction which often renders improvement so difficult. Positively this implies, also, that production should be carried on under wholesome conditions. "In the second place, would we secure the advantages of Socialism, we must so mend our distribution of wealth that we shall avoid present extremes and bring about widely diffused comfort, making frugal comfort for all our aim. Distribution must be so shaped, if practicable, that all shall have assured incomes, but that no one who is personally qualified to render service shall enjoy an income without personal exertion. "In the third place, there must be abundant public provis : on of SOCIAL REFORM 61 opportunity for the development .of our faculties, including educational facilities and the large use of natural resources for purposes of recreation. One question which meets us at the threshold of our inquiries concerns the possibility of reform. Can we accomplish the ends which we have in view, and will the effort which we put forth to accomplish these ends meet with a return commensurate with the effort involved? It is fre- quently said that all our efforts amount to so little that it is not worth our while to try to improve society. When we look into the efforts to accomplish reform in the past we cannot find reason for discouragement ; quite the contrary, well directed effort has accomplished great things; and we are warranted in the belief that a thorough reformation of society and the reduction of social evils to very low terms, if not a complete abolition, is practicable. The number of those who are submerged, large as it is, is comparatively small, giving, let us say, nine persons to help one of the fallen, and improvement among the nine-tenths is not difficult." (pp. 255-257.) Now, I think we have the subject of social reform pretty well up before us. And here is a convenient point to inquire just what is Socialistic? What is Socialism? What is social reform? What is the distinction between Socialism and social reform? And first, where does Socialism begin? To properly answer this question we must get down to fundamentals. There are two fundamental principles which may and have governed industrial action competition and "co-oper- ation. Competition is, as we have seen, the selfish, every-fel- low-for-himself principle, adapted to man in the lower stages of civilization. Co-operation is the unselfish, help-one- another principle, adapted to man in the higher stages of civilization. Not only does one or the other of these two principles underlie all industrial action, but all political action as well; and why should it not? For we may say that, generally speaking, the political function is but the ser- vant of the industrial function. Out of the competitive principle have grown enmity, contention and crime of all sorts, including all wars and all inequalities of wealth ; great riches on the one hand, and abject poverty on the other; palaces on the one hand, and hovels on the other in short, our present society will all its monstrosities. Through the right, or unselfish use of the co-operative principle, or Socialism, will come an era in which amity will take the place of enmity ; the helping hand will take the place of contention; justice will take the place of injustice; crime will be reduced to the minimum, and, in time, almost or pos- sibly wholly disappear; and by which means also will first be developed nationalism, which will later merge into inter- nationalism, bringing universal justice, peace and good-will, finally realizing that fond dream of the ages, the universal brotherhood of man. 62 ANALYSIS OF SOCIALISM Competition is always selfish. It is not, however, neces- sarily always unjust. Competition usually misses justice very widely, and, as we have seen, the sum of all its action culminates finally in the grossest injustice. Co-operation may be selfish or unselfish, and result in justice or injustice, depending on the nature of the case, the object of the co-operation, and the number of the co-oper- ators. Examples of wrong or unjust co-operation: When two men unite and pounce upon a third man and relieve him of his money or other effects ; where the members of a tribe combine in a raid upon a weaker tribe for purposes of plunder, murder and enslavement; where a nation, by war or intimi- dation, takes an unjust advantage of another nation or people; where two or more people combine to raise or lower the price of an article so as to give them an- unjust advantage over others ; this last includes all operations of the trust. Examples of right or just co-operation : Where two or more persons unite for self protection against thieves, robbers or savages; where a tribe or nation unite to resist the unjust encroachments of another tribe or nation, and, generally speaking, where any number of people unite either indus- trially or politically to resist the injustice of others, and to do anything for the promotion of their own interests that will not mitigate against the just rights of others. . Competition, together with other forms of selfishness from which it springs, has filled the world with contentions, strifes, discords, jars, fightings and wars. The wisest were the first to discover the principle that in union there is strength ; hence, in the political field, the formation of cliques, clans, tribes, independent states, nations small and great, and trust combinations small and great. In society as it has hitherto existed, every separate individual, every union of individuals, and every confederation of unions, constitutes a unit. Every state or nation, or confederation of states or nations, constitutes a political unit ; and every political unit is against every other political unit. Likewise, in the industrial field, every unorganized individual, every union, society, club, guild, partnership, syndicate, corporation, trust combination, every organization or confederation of organi- zations of either capitalists or laborers, constitutes an indus- trial unit, and every industrial unit is against every other industrial unit. Life as we view it to-day is a continual scene of warring, jarring, jostling and struggling. Socialism pro- poses to harmonize all these discordant elements, beginning with the confederation of all the industrial elements of each nation under one common, equal interest. This done in all . SOCIAL REFORM 63 the great nations, the international confederation, or inter- nationalizing process, will be easy. But where does Socialism begin? is the -question we started out to answer. It is obvious that where competitiqn ends, co-operation begins ; i. e., with trust combination. But, of course, this is not Socialism ; for though the trust partakes of the characteristics of Socialism, in that it is a co-operation, in which there is common ownership, and common manage- ment, and common distribution, and the individual enjoyment of distributed income, yet the co-operation is confined to such narrow limits, being usually a small private body, the com- mon ownership, management and distribution is so unequal, and the injustice to those without is so great, that it is very far from being Socialism as it is commonly advocated, though it might not be far amiss to call it an abnormal, monstrous form of unequal Socialism with those outside the narrow circle retained as slaves. But Socialism as now advocated, implies a public co-operation of the whole people ; an equal interest in the collectively owned capital ; an equal voice in the collective management ; a share in the distribution that shall be- equal, nearly equal, or equal in proportion to effort, and an ample provision for the unfortunte. With this view a trust would hardly be considered even slightly Socialistic. At any rate, if there is any Socialism in the trust, it is not the kind we are looking for. The operation of the trust is a selfish use of a naturally unselfish principle, co-operation, and is the natural course pursued by men who have been educated in the selfish school of competition, and Socialism must begin with an unselfish use of this principle. The so-called Socialistic legislation mentioned by Mr. Chamberlain, the intervention by the state and the legis- lative enactments and enforcements of laws providing better conditions for the working classes, is 'indeed Socialistic, though only slightly so. In the enactment of the laws he mentions are exhibited several of the leading features of Socialism, but in a very limited degree. These are all of them, as he says, "measures which more or less limit and control individual action." The interruption and control of individual or private action by the substitution of state, or public action, as a partially controlling force in producton, is one Socialistic feature ; the provisions for trades unions to have a voice in the regulation of wages, together with all pro- visions whereby the condition of the workers has been improved, constitutes two other features ; because in these measures the state puts in a voice in the matter of distribution and does something (a very little something to be sure) toward equalizing the shares ; and, lastly, we may mention as 64 ANALYSIS OF SOCIALISM another feature of Socialism the provisions for relieving the condition of the very poor and reducing pauperism and crime. Socialism advocates ample provision for the unfortunate, those who are defective, and, although no doubt many of this class have fair capacities and would be able under favorable conditions to support themselves, yet as society is now they must be accounted defective, unable by reason of perhaps a slight degree of weakness of body or mind, or it may be moral weakness, the result of lack of moral training or a vicious environment, but unable, nevertheless, to cope with those who are stronger in the competitive struggle for life. Mr. Chamberlain said .that the poor rate had been dimin- ished and that crime had been reduced in both quantity and character. When I read such boasts from politicians, it reminds me of a farmers' convention where it is conclusively shown by. testimony based on actual experience that it is cheaper to keep animals fat than to keep them poor; that if you feed a horse better he will do more work, and that if the animal is disposed to be vicious and dangerous his dis- position may be greatly improved ; and that animals that are vicious and dangerous, are generally so, largely because they are mistreated ; give them plenty to eat, treat them kindly, and do not compel them to work harder than they are able to stand; and that this method is much more profitable and much safer for the masters. I appeal to the reader to say if this is not a fair illustration of nearly all the legislation that has ever yet been enacted for the benefit of the masses. The Socialistic legislation mentioned is very far from producing Socialism. It is scarcely worthy of notice as being even slightly Socialistic ; and I only mention it in order that I may be able to convey to the reader a clearer conception of just what Socialism is, and show how far short is much of the vaunted "Socialistic" social reform legislation. Judging by my somewhat meagre information, I am inclined to think that the above illustration will hold good in some measure even in New Zealand, where more has been done for the masses than in any other country on the globe. The movement there seems to be a combination of the smaller capitalists and the working classes against the larger capital- ists, the land monopolists. Before the movement began, there was great dissatisfaction among the working classes. Now the main object of government seems to 'be to make all classes satisfied rather than to mete out justice to all; and it seems to have been very successful in attaining its object. I draw this conclusion from points like the following, found in the report alluded to : SOCIAL REFORM 65 "The state backs up private enterprise with all the machinery at its disposal, but directly private enterprise tries to work monopolies and raise prices, private enterprise receives a hint that there are limits to the patience of the people and that if that kind of thing is persevered in the Government will become an active competitor." (p. 23.) Here, as elsewhere, the "limits to the patience of the people" is the thing most dreaded by the industrial tyrants. The difference is, that the people of New Zealand have become sufficiently awakened to demand a larger proportion of their rights than is demanded by any other people ; there- fore the limit to their patience is sooner found. On page 27, the folowing : "No dispute can be considered except in trade where there are trade unions, and only where these trade unions have registered under the law. This is, first, to save the courts from being overwhelmed by a flood of petty matters, and, second, because the disputes that threaten the peace and prosperity of society came from organized, not unorganized, labor." Here you have it. Even in New Zealand with all its advanced ethics, the government has no time to render jus- tice to those who do not know enough to ask for it, and not even then unless the asking is done in a way that threatens the "peace and prosperity of society." In line with these items, we find on pages 261 and 262, Historians' History of the World, the following: "The change was emphasized by the active intervention in 'politics of the trade unions. These bodies, impelled by a Socialistic movement felt throughout Australia and New Zealand, decided, in 1889 and 1890, to exert their influence in returning workmen to Parliament, and where this was impossible to secure pledges from middle class candidates. This plan was first put into execution at the general election of 1890. The number of labor members thus elected to the General Assembly was small, never more than six, and no independent labor party was formed. But the interests of labor in the Progressive, or, as it preferred to be called, the Labor Party, was considerable, and the legislative results noteworthy." Speaking of the work of reform in New Zealand, Edward Tregear, the Provincial Secretary, in a letter recently pub- lished in this country, stated that they had but barely touched the fringe of the economic garment, and that the con- dition of the working people might properly be called that of well fed slaves. The government of New Zealand is the most Socialistic of any in the world, but when we apply the testing points, we find it too far defective to be properly called Socialism. Most of the capital is in the hands of private individuals who oper- ate it. Here are two points, the ownership and the manage- ment of the capital that are each partly capitalistic and partly Socialistic. Again in the matter of distribution, there is a mixture of the capitalistic and the Socialistic. All legal pro- visions relating to wages, hours of labor, industry or toil, or care of aged or infirm, which have a tendency in the direction 66 ANALYSIS OF SOCIALISM of equalizing income, are Socialistic ; the main capitalistic feature of the distribution, consists of the profits which the capitalists receive on their investments, for they must have profits else they would retire from business. Of course, the government by increasing the wages of the workers, reducing the hours of labor, heavy taxes, etc., could reduce the profits till they would barely be but wages sufficient to induce the capitalists to remain in business and manage it or see that it is managed to the best advantage, and it may be, so far as I am informed, that this is what the New Zealand government is doing. If so, so much the better for the cause of justice. I think not, however, or there would be a greater dissatisfac- tion than reports indicate. The New Zealanders have begun well; but whether they will continue to advance, or choose leaders who will conspire with the capitalists behind the scenes to make the people satisfied with their present attain- ments, is the question. This is their danger point; and it is a danger that must always accompany social reform. A cen- tury and a quarter ago, the people of our own nation began singing a new song, beginning with the words, "We have the best government in the world." The words were true then; the song became a national air ; it passed from father to son, and even now you will occasionally find a man, not always from the backwoods either, who, when you undertake to talk Socialism to him, will immediately begin to sing that song, and you are exceedingly fortunate if you are able to get in another word. The New Zealanders have begun singing the same song. The words are true of them now, but it is not by any means certain that they always will be, and they, like ourselves, may go on singing the song long after it ceases to be true.* *Since writing the above an article was quoted in the Appeal to Reason from which we make the following extract: "The result of the 1890 struggle banded the workers of New Zealand together, and much good work was accomplished during the subsequent two or three years. Then the old enemy political differences intervened. Interested parties succeeded in dividing the ranks on imaginary differences and non-essentials, and unionism at the present time exists only for the benefit of a few salaried officers. Not thirty per cent of the workers in any trade are unionists, and less than five per cent of these take any interest in the affairs of their unions. And what are the subjects discussed at these meetings? Is the objective of trade unionism ever mentioned or inculcated in the speeches of their leaders? And on election day do they march in a body as trade unionists (as they do on Labor Day) and vote as trade unionists? I'm afraid the answer to these questions must be unsatisfactory, and the fact admitted that trades unionism in New Zealand is reactionary, disorganized and almost non-existent. "After the maritime strike, already referred to (which failed because of the want of organization), the conciliation board and arbitration court were set up. In these the exploiter and the exploited meet and mutually arrange the amount of exploitation which satisfies the rapaciousness of the former, and to which the latter will submit and still manage to exist and propagate his species! Did I not live in New Zealand I should scout the idea as without the sphere of possibility. The conciliation board and arbrtration act has dealt trade unionism in New Zealand its death blow. The condi- tions of labor and wages paid are now decided, not by the votes of the members of the unions, but by an outside tribunal, two-thirds of the members of which are in no way under the control of the unions. From its very constitution what could the workers expect but that the interests of their employers would be first and paramou " SOCIAL REFORM 6; Professor Ely's program of social reform suggests much that is similar to what is being done in New Zealand, but he goes one better and advocates that, "No one who is personally qualified to render service shall enjoy an income without personal exertion." His program also includes government ownership of monopolies. It is sometimes said that if the government would take up the ownership of all the industries as fast as they became monopolies, we would soon have Socialism ; for that even farming will soon become a monopoly. It would be difficult to say just how defective a system might be in Socialistic points, and still be properly termed Socialism, but a government ownership of all indus- tries might be so managed that, to say the least of it, it would be a very imperfect Socialism. There might be a great inequality in the distribution, but in a democratic country where the people have an equal voice, the tendency would be toward improvement in this respect. There are four classes of people who advocate social reform : First, those Socialists who favor social reform as a step to Socialism ; second, sincere, conservative minded people who have the welfare of the masses at heart but fear to cut loose from the present order ; third, the middle sized or smaller capitalists and those who hope to be but fear being swallowed by the great capitalists, who desire more than their just share in the distribution of wealth, while not willing to bear their share of the burden in productive effort, and who seek to off- set the present movement toward Socialism by introducing a social reform that shall protect all against the great capital- ists and so improve the condition of the masses, that the people will be satisfied, while they themselves may retain or accumulate their small fortunes, and thus be able to live free of toil ; fourth, fake politicians who seek to ride into power on a popular wave, sell themselves to the capitalists, and con- spire with them against the people. Social reform, as we have found, proposes a combination of capitalistic with Socialistic principles, or, in other words, it is the tacking on of Socialistic principles to the capitalistic system. To a genuine Socialist, one who comprehends the Social- ist ideal in all its fullness, a program of social reform such as Professor Ely's, or any other that may be pre- sented, seems a very foolish and difficult method of doing every time. The workers have been rohbed of their fighting weapon, the strike. The enthusiasm of the members of the unions has been killed, and all interest in trades unionism has gone by the board. The union meeting is a place for transacting routine business only, instead of a rendezvous of the advanced guard of progress and a school of preparation for the great coming event the Social Revolution." Philip Joseph in. "The Socialist" of New Zealand. P J 68 ANALYSIS OF SOCIALISM a good thing; a method in which the adverse, reaction- ary forces are liable at any time to get an advantage and turn a good thing into a very poor, if not a really bad thing. He asks if we may not keep what is good in our present system and escape some of its evils. In this, it seems to me, the learned professor betrays one of two things; either an attachment for the flesh pots of Egypt, (capitalism), that is unworthy of a reformer, or a failure to grasp the full mean- ing of Socialism ; for surely if he had studied the economies of Socialism, one branch of which is its almost entire freedom from corruption, by reason of the removal of temptations to dishonesty, as well as economy in the use of all productive forces, if he had studied these carefully, he surely would not have turned hastily from Socialism as a thing impracticable, to proceed in the formulation of a program which must greatly multiply temptations to corruption, and which, if effective even in a small degree, must involve intricacy, where Socialism would furnish simplicity. In short, social reform is a bungling, wasteful method of doing a small part of the good that Socialism proposes to do by a systematic, scientific, economical method. So long as private ownership is allowed to exist at all, it will- continue to corrupt the administration and tap public ownership in the dark places. Social reform, where it is of sufficient consequence to be worthy of notice, like that in New Zealand, for instance, whatever its promoters may choose to call it or intend to make of it, is but a partial Socialism, an initial stage of Socialism, hardly worthy the name, yet as a system of reform where the people are greatly benefited "it is Socialism, and not capitalism, that benefits; for all the beneficial features are Socialistic. As we have already observed, there are four classes who are advocating social reform. Among these are the smaller capitalists. The position of this class is a peculiar one : they are in a dilemma from which it will require their utmost shrewdness to extricate themselves. I do not know that I can better illustrate their position and methods than by a story something like the following : There was once a hawk that very shrewdly managed to steal from a farmer a plentiful supply of chickens for him- self and his family, till all grew plump and sleek. The farmer frequently saw them sailing about very proudly, but never suspected them. There did not seem to be as many chickens as there ought to be but he did not think much about it. By and by an eagle brought his family into the vicinity. He looked about him, watched his opportunity, and pouncine down upon the hawk relieved him- of his prey. The hawk did not SOCIAL REFORM 69 mind this very much but sailed away and got another chicken for his family. The eagle, becoming more familiar with the ground, repeated his performance of robbing the hawk; time and time again he repeated it and more and more frequently until the eagle family grew to an enormous size, and the wonder was how big they might finally grow to be. The hawk did not exactly fancy the treatment accorded him by the eagle, but he did not care so very much ; for chickens were plentiful and easy to get, he understood his business so well. He was able to support his family about as before and managed to keep up appearances very well, so that the young hawklets were sometimes admitted into the society of the young eaglets, greatly to the delight of the former. This state of things continued for some time, until finally, one day in a conversation with the farmer, with whom he was on the best of terms, the latter remarked that he very much feared he would have to go out of the chicken business ; that somehow chickens did not pay. He did not know why, but that somehow he could not raise many chickens. This showed the hawk that he was in a very serious dilemma. How to extricate himself now became the great question of his life. After a little reflection he decided that there was just one course for him to pursue. He would go to the eagle and tell him plainly that if he did not compromise and leave a larger share of the chickens, he would at once inform on him, and if the eagle agreed to his terms, well and good ; but if not, that he would immediately put his threat into execution. There are two sequels to this story. One is that the eagle scorned his proposition and would not deign to look at the hawk, whereupon the latter told the farmer that he had discovered why he succeeded so poorly in the chicken busi- ness ; that a thorough investigation had revealed the fact that the eagle had stolen nearly all his chickens, and not only so, but that he had also stolen many of the hawk's chickens ; that then the farmer flew into a rage, and procuring his gun went forthwith and broke up the eagle's nest, killing most of them and scaring the "rest out of the country; that after this the hawks fared sumptuously, while the farmer was at the same time permitted to raise so many more chickens that he was ever afterward exceedingly grateful to the hawk for having helped him to break up the den of thieves, and thus save his business from ruin. The other sequel is, that after some alter- cation, the eagle, seeing the hawk had the drop on him, .made terms at once, though with great reluctance, and that there- after the hawk family were taken into the best society, fared the same as the other great birds, and, in fact, in a very few 70 ANALYSIS OF SOCIALISM years it came to be that one could hardly distinguish the hawks from the eagles so much alike had they grown to be, the eagles becoming somewhat smaller and the hawks some- what larger. Through the influence of Mr. Eagle a number of farmers had been induced to settle in the neighborhood and embark in the chicken business, and chicken became an important feature of all the fetes, dinners, pie socials, etc., of the hawk-eagle society. It is amusing to see the smaller capitalists squirm. For a dozen years or more they have been sitting. in silence, and now they are out with a program. But the most curious thing that has ever happened in man's history since Adam lost one of his ribs, is that after they have ransacked the earth, gone through all the philosophy of the past, and, no doubt, given flight to the wings of their imagination in all possible directions, the best they can do, the only safe thing, is to adopt a Socialistic program the very thing they most fear except capitalism and it isn't safe from their point of view. They know that only too well. They realize fully that they are playing with fire, t but it must be done. They know that it is the only chance for them and that it is but a forlorn hope. They have learned that there is nothing between the big end of capitalism, the trust, and Socialism. They like the trust, if only they might be admitted to the inner circle and permitted to take rooms at No. 26 Broadway, but they realize that such a privilege is only for the very select few, and they also realize that to be left out is death, unless they can form a powerful coalition that will destroy the inner circle, the eagle's nest, and they find there is no possible means of doing this except by Socialistic methods. What they want is to introduce just enough Socialism to enable them to accom- plish their purpose and then fossilize Socialism in its initial stages, but they tremble at the fear that by that time the people may become so widely awakened that they will not let it fossilize. But as they always have succeeded in hood- winking the people, they hope still to be able to manage them somehow. There is no knowing just how many will be found play- ing the hawk. Probably the number will be comparatively small that do this intentionally and with a full understanding of the import of their actions; but it is greatly to be feared that the number connected with the hawk family will be by far too large for the best interests of society. While I real- ize tbat we should avoid being over suspicious, I cannot but think that there is a great danger along this line, and that no matter whether Socialism be started with an intention of making it a full fledged Socialism, or simply a mere system SOCIAL REFORM 71 of social reform, there will be a strong effort made on the part of some to fossilize the system ; to make the people believe they have reached the summum bonum in govern- ment ; to persuade them that they would better leave well enough alone, and to induce them to take up the old cry, "We have the best government in the world." As compared with Socialism, social reform is a failure as a scheme of distribu- tive justice, because it furnishes an opportunity to avoid the full distributive justice which Socialism proposes; and we find also that whatever improvement is furnished by social reform over our present system is due to the Socialism there is in it, and that whatever it lacks of justice is the result of what it lacks of being perfect Socialism. To make this plainer, let us consider a few points in the New Zealand work. The government, by Socialistic methods, that is, by public ownership of railways, telegraphs, tele- phones and a few other things, its intervention in the partial control of private industries and its system of agencies, stimu- lated industry throughout the country and brought prosperity to nearly, if not entirely all classes. By intervention in behalf of the wage earners, part of the injustice to them is avoided; but by reason of the capitalism that is mixed up in it, complete justice cannot be done; for capitalism must have profits, and these, in justice, belong to the worker. Then take Professor Ely's program : all the measures proposed are necessarily Socialistic measures, providing partial Socialism ; and since all the points of social reform by which it is capable of working an improvement over our present order, in other words since all the good points in social reform are Socialistic points, therefore all the good wrought by social reform is so much done by Socialism, and this goes toward establishing the proposition that nothing else but Socialism is practicable ; for capitalism fails utterly and since there is no other system proposed, the nearest being anarchism which is conspicuous mainly for its absence of system, therefore Socialism is a necessity and the only ques- tion is as to which is more practicable, Socialism in full or partial Socialism, that is, Socialism or social reform. "It has so happened in all ages of the world that some have labored, and others have, without labor, enjoyed a large proportion of the profits. This is wrong and should not continue. To secure to each laborer the whole product of his labor, or as nearly as possible, is a worthy object of any good government." Abraham Lincoln, Comp. Works, Vol. I, p. 92. 72 ANALYSIS OF SOCIALISM CHAPTER IX. THE PRACTICABILITY OF SOCIALISM; "And I believe it to be entirely practicable, in fact that any other system is simply barbarous." Frances E. Willard. Who has not often heard that Socialism is impracticable? On every hand we hear people say, "Oh, that sounds nice enough but you can never make it work/' Ask the politician for the main argument against Socialism and the answer comes back gruffly to you as it. has to me "Socialism isn't practicable." The first question that meets us in the discus- sion of this topic is, what does it take to constitute a thing practicable? Of course, we know that practicability means that which may be practiced ; but that does not meet the case. What we want is a practical definition of practicable, one that can be practically applied to the matter in hand. In discussing the practicability of Socialism as a system of society we should not confine ourselves to the simple question as to whether under Socialism people will be able to live till they die. If this were all, any system, even savagery is practicable. But the practical question which confronts us is, how successful is it reasonable to expect that Socialism will be, both in its initial stages and in its later development, as a means for the promotion of human welfare? And not simply this, but how successful as compared with other sys- tems, especially such others as the people may be disposed to adhere to. Its success as a general scheme of justice and benevolence ; the feasibility and adaptability of its methods-, both in acquiring possession and in its operation in all depart- ments of human activity these all have a bearing in deter- mining its practicability. If Socialism were decidedly unjust it would seriously mar its practicability ; while, on the other hand, its thorough justification goes far toward establishing its practicability. Similarly we may say of the necessity of Socialism that if it can be shown that all other systems fail absolutely as methods of promoting human welfare, then we are left to cling to Socialism as our only hope, even though the prospect of making it a success may be so poor as to render it but a forlorn hope. (But we will find that it is not a forlorn hope.) And again, if there were no possible way for the people to acquire possession of the industries, the prac- ticability of Socialism would be a mere dream. In considering the practicability of Socialism I shall endeavor to furnish a somewhat detailed explanation of its practical workings, and occasionally to hold up before the reader a word picture of Socialism in action. JUSTICE AND BENEVOLENCE 73 In undertaking to do this I cannot but realize that I am handicapped very seriously by the fact that no one can tell positively at the present stage of the game, just what the actual program of Socialism will be. That will depend on what the majority say; but since the people demand a feasible practicable program before taking so decisive a step, it becomes a matter of the greatest importance. And yet if we understand thoroughly the Socialist philosophy it may not after all, be so very difficult to determine approximately what will be the fruits that result from the germination of its great seed thoughts planted in the minds of the people. The subjects of the next succeeding ten chapters all relate to the practicability of Socialism, and if we would understand it thoroughly, we must consider them patiently in all their bearings and details. It is an extensive subject, but it is very important. Perhaps there is not another question that is now calling forth the best thought of the civilized world to such an extent as this question, "Is Socialism practicable?" The ideals of Socialism are admired the world over. All honest people who think closely on the subject admit the justice of Socialism ; but when they come to the practicability they stand dazed and confused at what appears to them to be a tangled labyrinth of matter surrounding the subject. Ques- tions ! questions ! questions ! cross each other at every step ; objections spring up from behind every bush-. After a little desultory superficial skirmishing they retire shaking their heads ; and I am astonished to know that among them are found men of brains, men renowned for their learning and erudition. Ihit need there be any doubt? I think not, if we will but have the patience to wade boldly in, dig to bed rock at every important point and let our motto be "One thing at a time." Never mind the criss-cross questions and objections at first. These will mostly vanish of their own accord as we proceed with our investigation. CHAPTER X. THE JUSTICE AND BENEVOLENCE OF SOCIALISM. There seems to exist in the minds of many good people, the idea that Socialism proposes a great injustice to the present property owners. Some who admire the high ideals of Socialism and are favorably disposed to it in other respects, stumble at the proposition to usher in the new sys- tem by what seems to them to be virtually a wholesale rob- bery. Let me assure the reader however, at the outset, that 74 ANALYSIS OF SOCIALISM there could scarcely be anything farther from the truth; and to show that I am in good company in this position, I cite you to the extract already quoted from Miss Willard's speech in which she denounced the great inequalities of distribution. I also call your attention to the fact that Professor Ely with all his doubtings concerning the practicability of Socialism,, says confidently, that "Socialism is strong on its moral and ethical side;" that one of its strong points is its distributive justice; and that "Socialism is not a scheme of criminals for theft and robbery ;" that the criminal only looks out for to-day, while Socialism plans for the future upbuilding of the human race. A careful study of this topic will reveal the fact that the failure of many to appreciate the justice of Social- ism, is the result of distorted ideals of justice which competi- tion and capitalism have set before the world. By means of all the institutions of society, our ideas of the rights of property and the sacredness of those rights, have been so thoroughly riveted upon the minds of the people that they seem like bed rock, fundamental, as some one has said, "so because it is so and that is all there is to it." There is per- haps, no other principle the inculcation of which has done more to educate the public conscience than that of the sacred- ness of the rights of property ; and I am very glad indeed that the public conscience has been so educated; for it is to that conscience that I now appeal. One of the chief tests of the civilization of a people in the past has been their respect for the rights of property; and when the world comes to understand better just what those rights are, the same test will determine whether or not we are rising still higher in the scale of civilization. Let any reader who is in doubt about the justice of Socialism, turn back and reread Chapters II., III. and V.,. reflect carefully and say if you think the moral title to the bulk of the wealth is where the legal title places it. If not, then there is an injustice done those who have a moral right but are kept out of possession. Socialism proposes the col- lective ownership of most of the property ; of all of what is called capital or tools of production, that is, the land with its improvements, excepting what is used for homes; (and even these no doubt many will find it more convenient to rent from the government because of the changing wants of their families and the necessity or disposition to change localities,) all live stock excepting such as are used privately, as, for instance, a cow or driving horse, which probably very few will care to be bothered with, as the state could supply the needs of each much cheaper; all the facilities for travel, com- JUSTICE AND BENEVOLENCE 75 munication and transportation, and whatever property may be necessary in providing for the general welfare. As we have seen, the average of wealth per family is about $6,000.00, and it is evident that it does not matter whether one own and operate his share separately, or share in the collective ownership, provided he derives the same benefit with the same effort. Now, it is clear, must be clear to any thinking person, that in such case Socialism would not be unjust, if, after the transfer of the wealth from private to public ownership, allowing an equal share to each one, the amount of wealth then held unjustly, is not greater than the amount now held unjustly; for, be it remembered, that to say the least of it, there is a very great injustice being perpe- trated now, in that a very great part of the wealth is now legally owned by those who have no moral right to it, and Socialism cannot be unjust in making such transfer, unless it increases the injustice. And when the reader has studied the various economies of Socialism, and considered the greater certainty which it will provide instead of the . financial uncertainty that now exists, and also the greatly improved advantages which the higher society of Socialism will furnish, he will then be able to see that one now having several times that amount would be financially benefited by exchanging it for a six thousand dollar interest in the co-operative commonwealth. It fol- lows then, if this be true, that no injustice could result from a Socialistic transfer unless the amount held unjustly then, should be several times greater than that held unjustly now, which is not the case ; for it may easily be shown that instead of being several times greater, it would be several times less. I believe there is much more good in human nature than it usually gets credit for. Many who adhere to the principles of our present order revolt against some of their legitimate results. For instance, they endorse in a gen- eral way the agreed price as a just basis of exchange, yet frequently, when the price is extremely high or extremely low, will denounce it as robbery. Again they endorse what they call "vested rights," the right of each one to do as he pleases with his own ; yet when he takes advantage of his fellow-man's necessities and exacts an exorbitant inter- est, or rent, or profit, again they cry robbery ! and raise the standard of revolt against the principles they endorse. I am very glad there are so many who are better than their principles. It gives room to hope that they may be led to see the defects in those principles, and induced to throw them away and substitute those that are better. And they are doing this even now. Like an old coat, the people have out- 76 ANALYSIS OF SOCIALISM grown their principles; and it is gratifying to know that every day they are doffing the old and donning the new that fit them better. But with the ideals of justice held by those who are still wearing their outgrown principles it is evident that a very large part of the wealth is held unjustly, especially the great fortunes which are very largely the accumulations resulting- not merely from exorbitant rent, interest and profit, but also the results of political corruption, trust combination, conspiracies, etc. Socialism proposes the use of machinery on a large scale, such as is not dreamed of under capitalism ; of much better organization, much more systematic, scientific and economical methods of production and distribution, and that all who are able shall help. Social- ists hope that by the economic use of all the productive forces that are now working principally at cross purposes, the pro- duction may be easily doubled with a considerable reduction in the effort required by each one, and that by the use of machinery on a vast scale as well as by more systematic, scientific and economical methods, it may at least be doubled and more likely quadrupled again. Socialism proposes to supply all man's wants. If it proves to be practicable as we Socialists have full confidence it will, even to within half or a fourth of our expectations, the lot of each one will be more enjoyable than that of any millionaire now. The possession of great wealth brings a burden of care which would be unknown under Socialism ; for if Socialism can be made to work at all at the start, it can be improved so that one having tasted its sweets would not exchange his common lot for all the wealth of a Rocke- feller. But this treatment of the subject is based on the ideals of those who are still wearing the old coat, the old principles, the extreme results of which they revolt against, the principle of mutual agreement in questions of wages, of price, rent, interest and profit, and the principle of "vested rights," all of which boiled down signify simply that "might makes right." And just here a few words on vested rights. In the days of slavery the slave-owner talked much of these; but in reply it was said, that, admitting the validity of the principle, these so-called "vested rights" are rights only by sufferance of the law, and that being morally wrong they cannot possibly continue any moral right after the law has terminated the right by sufferance. So with capitalism. In its last analysis capitalism is but a form of slavery. Wealth or property, especially property in capital, the tools of production, is desir- able for the power that it gives over men. The chattel slave owner desired the ownership of slaves in order that he might command their services. That is exactly why the capitalist JUSTICE AND BENEVOLENCE 77 desires the ownership of capital, that he may command the services of the wage slave. The more capital he has the more services he may command. Capitalism too is in itself morally wrong, and the ''vested rights" under it are also merely rights by sufferance, and can have no morally binding force beyond the time when the people abolish them with the system from which they sprang and substitute something better. Accumulations of wealth, especially great wealth, are largely the result of chance. The owner justifies himself on the ground of the risk he has taken. To this we reply, very well ; the risk is worth something though generally less than the profits, else the fortunes would not exist; but however that may be, no just claim by virtue of risk can possibly extend beyond the close of the competitive system under which all business is to a greater or less extent gambling, when Social- ism will put an end to the gambling and substitute certainty for uncertainty. So much then for the treatment of the sub- ject on this lower plane. And now, you who are still cling- ing to the 'old principles, the extreme effects of which you revolt against, you who are still wearing or trying to wear the old coat, let me implore you to throw away the little old, ragged, dirty, blood-stained thing, and come, follow me, while I show*you a beautiful garment, and spotlessly clean, a little large for you just now, it may be, but if you eat plenty of the right kind of food, you may soon grow till it will fit you to a "T." Come let us examine these new principles, which are not entirely new, for they have been recognized by many philosophers and sages of the past, but they are practically new to most people. I refer to the three propositions already stated, namely, first, "The earth with all its resources is the common heritage of all the people ;" second, "Wealth belongs to those who produce it ;" and third, "Human welfare is the highest basis of right." First, "The earth with all its resources is the natural heritage of all the people." It seems hardly necessary to offer anything in proof of this proposition beyond its simple state- ment, its truthfulness is so self-evident. Nevertheless, I will occupy a short space in endeavoring to elucidate it somewhat. Whether you are Christian or non-Christian, you believe that the earth exists for the benefit of all and not simply for a few. That naturally all the people have an equal right to all earth's resources rmist be admitted bv all excepting those who adhere to the principle that "rmVbt makes ri