not yet told me what was the answer to the riddle which you found," I said.
"I am impatient to know by what contradiction of natural sequence the peace
and prosperity which you now seem to enjoy could have been the outcome
of an era like my own."
"Excuse me," replied my host, "but do you smoke?" It was not till our cigars were lighted and drawing well that he resumed. "Since you are in the humor to talk rather than to sleep, as I certainly am, perhaps I cannot do better than to try to give you enough idea of our modern industrial system to dissipate at least the impression that there is any mystery about the process of its evolution. The Bostonians of your day had the reputation of being great askers of questions, and I am going to show my descent by asking you one to begin with. What should you name as the most prominent feature of the labor troubles of your day?"
"Why, the strikes, of course," I replied.
"Exactly; but what made the strikes so formidable?"
"The great labor organizations."
"And what was the motive of these great organizations?"
"The workmen claimed they had to organize to get their
rights from the big corporations," I replied.
"That is just it," said Dr. Leete; "the organization of labor and the strikes were an effect, merely, of the concentration of capital in greater masses than had ever been known before. Before this concentration began, while as yet commerce and industry were conducted by innumerable petty concerns with small capital, instead of a small number of great concerns with vast capital, the individual workman was relatively important and independent in his relations to the employer. Moreover, when a little capital or a new idea was enough to start a man in business for himself, workingmen were constantly becoming employers and there was no hard and fast line between the two classes. Labor unions were needless then, and general strikes out of the question. But when the era of small concerns with small capital was succeeded by that of the great aggregations of capital, all this was changed. The individual laborer, who had been relatively important to the small employer, was reduced to insignifi-cance and powerlessness over against the great corporation, while at the same time the way upward to the grade of employer was closed to him. Self-defense drove him to union with his fellows."
"The records of the period show that the outcry against the concentration of capital was furious. Men believed that it threatened society with a form of tyranny more abhorrent than it had ever endured. They believed that the great corporations were preparing for them the yoke of a baser servitude than had ever been imposed on the race, servitude not to men but to soulless machines incapable of any motive but insatiable greed. Looking back, we cannot wonder at their desperation, for certainly humanity was never confronted with a fate more sordid and hideous than would have been the era of corporate tyranny which they anticipated."
"Meanwhile, without being in the smallest degree checked by the clamor against it, the absorption of business by ever larger monopolies continued. In the United States there was not, after the beginning of the last quarter of the century, any opportunity whatever for individual enterprise in any important field of industry, unless backed by a great capital. During the last decade of the century, such small businesses as still remained were fast-failing survivals of a past epoch, or mere parasites on the great corporations, or else existed in fields too small to attract the great capitalists. Small businesses, as far as they still remained, were reduced to the condition of rats and mice, living in holes and corners, and counting on evading notice for the enjoyment of existence." .
"The fact that the desperate popular opposition to the consolidation of business in a few powerful hands had no effect to check it proves that there must have been a strong economical reason for it. The small capitalists, with their innumerably petty concerns, had in fact yielded the field to the great aggregations of capital, because they belonged to a day of small things and were totally incompetent to the demands of an age of steam and telegraphs and the gigantic scale of its enterprises. To restore the former order of things, even if possible, would have involved returning to the day of stagecoaches. Oppressive and intolerable as was the regime of the great consolidations of capital, even its victims, while they cursed it, were forced to admit the prodigious increase of efficiency which had been imparted to the national industries, the vast economies effected by concentration of management and unity of organization, and to confess that since the new system had taken the place of the old the wealth of the world had increased at a rate before undreamed of. To be sure this vast increase had gone chiefly to make the rich richer, increasing the gap between them and the poor; but the fact remained that, as a means merely of producing wealth, capital had been proved efficient in proportion to its consolidation. The restoration of the old system with the subdivision of capital, if it were possible, might indeed bring back a greater equality of conditions, with more individual dignity and freedom, but it would be at the price of general poverty and the arrest of material progress."
"Was there, then, no way of commanding the services of the mighty wealth.producing principle of consolidated capital without bowing down to a plutocracy like that of Carthage? As soon as men began to ask themselves these questions, they found the answer ready for them. The movement toward the conduct of business by larger and larger aggregations of capital, the tendency toward monopolies, which had been so desperately and vainly resisted, was recognized at last, in its true significance, as a process which only needed to complete its logical evolution to open a golden future to humanity."
"Early in the last century the evolution was completed by the final consolidation of the entire capital of the nation. The industry and commerce of the country, ceasing to be conducted by a set of irresponsible corporations and syndicates of private persons at their caprice and for their profit, were intrusted to a single syndicate representing the people, to be conducted in the common interest for the common profit. The nation, that is to say, organized as the one great business corporation in which all other corporations were absorbed; it became the one capitalist in the place of all other capitalists, the sole employer, the final monopoly in which all previous and lesser monopolies were swallowed up, a monopoly in the profits and economies of which all citizens shared. The epoch of trusts had ended in The Great Trust. In a word, the people of the United States concluded to assume the conduct of their own business, just as one hundred odd years before they had assumed the conduct of their own government, organizing now for industrial purposes on precisely the same grounds that they had then organized for political purposes." . .
"Such a stupendous change as you describe," said I, "did not, of course, take place without great bloodshed and terrible convulsions."
"On the contrary," replied Dr. Leete, "there was absolutely no violence. The change had been long foreseen. Public opinion had become fully ripe for it, and the whole mass of the people was behind it. There was no more possibility of opposing it by force than by argument. On the other hand the popular sentiment toward the great corporations and those identified with them had ceased to be one of bitterness, as they came to realize their necessity as a link, a transition phase, in the evolution of the true industrial system. The most violent foes of the great private monopolies were now forced to recognize how invaluable and indispensable had been their office in educating the people up to the point of assuming control of their own business. Fifty years before, the consolidation of the industries of the country under national control would have seemed a very daring experiment to the most sanguine. But by a series of object lessons, seen and studied by all men, the great corporations had taught the people an entirely new set of ideas on this subject. They had seen for many years syndicates handling revenues greater than those of states, and directing the labors of hundreds of thousands of men with an efficiency and economy unattainable in smaller operations. It had come to be recognized as an axiom that the larger the business the simpler the principles that can be applied to it; that, as the machine is truer than the hand, so the system, which in a great concern does the work of the master's eye in a small business, turns out more accurate results. Thus it came about that, thanks to the corporations themselves, when it was proposed that the nation should assume their functions, the suggestion implied nothing which seemed impracticable even to the timid. To be sure it was a step beyond any yet taken, a broader generalization, but the very fact that the nation would be the sole corporation in the field would, it was seen, relieve the undertaking of many difficulties with which the partial monopolies had contended."
Dr. Leete ceased speaking, and I remained silent, endeavoring to form some general conception of the changes in the arrangements of society implied in the tremendous revolution which he had described.
Finally I said, "The idea of such an extension of the functions of government is, to say the least, rather overwhelming."
"Extension!" he repeated, "where is the extension?"
"In my day," I replied, "it was considered that the proper functions of government, strictly speaking, were limited to keeping the peace and defending the people against the public enemy, that is, to the military and police powers."
"And, in heaven's name, who are the public enemies?" exclaimed Dr. Leete. "Are they France, England, Germany, or hunger, cold, and nakedness? In your day governments were accustomed, on the slightest international misunderstanding, to seize upon the bodies of citizens and deliver them over by hundreds of thousands to death and mutilation, wasting their treasures the while like water; and all this oftenest for no imaginable profit to the victims. We have no wars now, and our governments no war powers, but in order to protect every citizen against hunger, cold, and nakedness, and provide for all his physical and mental needs, the function is assumed of directing his industry for a term of years. No, Mr. West, I am sure on reflection you will perceive that it was in your age, not in ours, that the extension of the functions of governments was extraordinary. Not even for the best ends would men now allow their governments such powers as were then used for the most maleficent."
"Leaving comparisons aside," I said, "the demagoguery and corruption of our public men would have been considered, in my day, insuperable objections to any assumption by government of the charge of the national industries. We should have thought that no arrangement could be worse than to entrust the politicians with control of the wealth-producing machinery of the country. Its material interests were quite too much the football of parties as it was."
"No doubt you were right," rejoined Dr. Leete, "but all that is changed now. We have no parties or politicians, and as for demagoguery and corruption, they are words having only an historical signfficance."
"Human nature itself must have changed very much," I said.
"Not at all," was Dr. Leete's reply, "but the conditions of human life have changed, and with them the motives of human action. The organization of society with you was such that officials were under a constant temptation to misuse their power for the private profit of themselves or others. Under such circumstances it seems almost strange that you dared entrust them with any of your affairs. Nowadays, on the contrary, society is so constituted that there is absolutely no way in which an official, however ill disposed, could possibly make any profit for himself or any one else by a misuse of his power. Let him be as bad an official as you please, he cannot be a corrupt one. There is no motive to be. The social system no longer offers a premium on dishonesty. But these are matters which you can only understand as you come, with time, to know us better."
"But you have not yet told me how you have settled the labor problem. It is the problem of capital which we have been discussing," I said. "After the nation had assumed conduct of the mills, machinery, raifroads, farms, mines, and capital in general of the country, the labor question still remained. In assuming the responsibilities of capital the nation had assumed the difficulties of the capitalist's position."
"The moment the nation assumed the responsibilities of capital those difficulties vanished," replied Dr. Leete. "The national organization of labor under one direction was the complete solution of what was, in your day and under your system, justly regarded as the insoluble labor problem. When the nation became the sole employer, all the citizens, by virtue of their citizenship, became employees, to be distributed according to the needs of industry."
"That is," I suggested, "you have simply applied the principle of universal military service, as it was understood in our day, to the labor question."
"Yes," said Dr. Leete, "that was something which followed as a matter of course as soon as the nation had become the sole capitalist. The people were already accustomed to the idea that the obligation of every citizen, not physically disabled, to contribute his military services to the defense of the nation was equal and absolute. That it was equally the duty of every citizen to contribute his quota of industrial or intellectual services to the maintenance of the nation was equally evident, though it was not until the nation became the employer of labor that citizens were able to render this sort of service with any pretense either of universality or equity. No organization of labor was possible when the employing power was divided among hundreds or thousands of individuals and corporations, between which concert of any kind was neither desired, nor indeed feasible. It constantly happened then that vast numbers who desired to labor could find no opportunity, and on the other hand, those who desired to evade a part or all of their debt could easily do so."
"Service, now, I suppose, is compulsory upon all," I suggested.
"It is rather a matter of course than of compulsion," replied Dr. Leete. "It is regarded as so absolutely natural and reasonable that the idea of its being compulsory has ceased to be thought of. He would be thought to be an incredibly contemptible person who should need compulsion in such a case. Nevertheless, to speak of service being compulsory would be a weak way to state its absolute inevitableness. Our entire social order is so wholly based upon and deduced from it that if it were conceivable that a man could escape it, he would be left with no possible way to provide for his existence. He would have excluded himself from the world, cut himself off from his kind, in a word, committed suicide."
"Is the term of service in this industrial army for life?"
"Oh, no; it both begins later and ends earlier than the average working period in your day. Your workshops were filled with children and old men, but we hold the period of youth sacred to education, and the period of maturity, when the physical forces begin to flag, equally sacred to ease and agreeable relaxation. The period of industrial service is twenty-four years, beginning at the close of the course of education at twenty-one and terminating at forty-five. After forty-five, while discharged from labor, the citizen still remains liable to special calls. In case of emergencies causing a sudden great increase in the demand for labor, till he reaches the age of fifty-five, but such calls are rarely, in fact almost never, made. The flfteenth day of October of every year is what we call Muster Day, because those who have reached the age of twenty-one are then mustered into the industrial service, and at the same time those who, after twenty-four years service, have reached the age of forty-five, are honorably mustered out. It is the great day of the year with us, whence we reckon all other events, our Olympiad, save that it is annual."
Digna Faber & Cassandra Janssen, From Revolution to Reconstruction - an .HTML project. University of Groningen: Humanities Computing - American Studies