HD2961.R32 From poverty to plenty, or, The labour qu T iq94 nn:^ hi i 191 TRANSFERRED TO : L 1 LIBRARY President White Library, Cornell University. THE MARTIN P. CATHERWOOD LIBRARY OF THE NEW YORK STATE SCHOOL OF INDUSTRIAL AND LABOR RELATIONS AT CORNELL UNIVERSITY Cornell University Library The original of tliis bool< is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924003811191 FROM POVERTY TO PLENTY; THE LABOUR QUESTION SOLVED. FROM POVERTY TO PLENTY OK, THE LABOUR QUESTION SOLVED. / BY W. L. EEES. All Rights Reserved. WYMAN & SONS, GREAT QUEEN STREET, LiNCOLjf's-iNN FIELDS, w.c.Properxy ot 7^oC, TO SIR GEOEGE GEEY, KC.B. [HIS work is inscribed to one whose wise counsels have so often aided me to attain results at which I have arrived, and who will recognise in its pages many tokens of the familiar interchange of thought between us during the past fifteen years ; to whose sympathy and encouragement I owe more than I can express, and to whom every effort made for the happiness of men, especially of men of his own race, is an effort in a sacred cause. To a great statesman, profound thinker, and sincere philanthropist, brave in the field, wise in council, true to his country, loyal to his 'Queen, and, above all, a humble servant of the Great Master, this book, with all reverence and affection, is dedicated by The Authoe. PEEFACE. |ANY years sincBj I was called upon in tlie practice of my profession to advise the native landowners of the east coast of the North Island of New Zealand in regard to their lands. The native land laws of New Zealand were and are a disgrace to any civilised community. The Maories were prevented by legislation from raising any money upon their lands for the purpose of utilising them, and by the same laws were prac- tically prevented from cultivating, or in any way improving their vast estates, extending in the North Island over twelve millions of acres. After mature consideration, I advised them that the only possible method of profitable enjoyment of their tribal properties was by conveying the lands to Europeans or joint-stock associations upon terms IV PBEFACE. mutually beneficial to both parties. Large numbers of the Maories accepted my advice and acted upon it, and lands to the extent of about 250,000 acres were so conveyed. I soon found that the mere possession of large territories in a state of nature entailed grave respon- sibilities and very heavy expenses. Recognising the fact that large masses of unemployed labour, together with great hoards of capital, existed in the United Kingdom which, properly directed, would enable me to utilise the great estate committed to my care, I set myself to the task of solving the problem of joining uninvested capital and unem- ployed labour upon these waste lands. The one science from which I could gather informa- tion as to the proper method, as a matter of course, I saw to be the science of wealth. Political Economy. To the study of that subject I, therefore, at once proceeded. In the progress of reading and of examination, it soon became apparent that not only was it idle to seek from that science, as at present taught, any practical assistance, but that the whole system was a huge collection of false principles, inhuman maxims, and deplorable results. I then PEEFACB. V determined to carry my researches and efforts to a final conclusion by attempting to lay down a true, practical, and philosophic system, through which the wealth which abounds in nature should be developed and realised for the happiness of man. In the succeeding pages I have somewhat severely criticised the work of Mr. Henry George. He will permit me here to state that I have received more assistance, notwithstanding what I consider to be its errors, from " Progress and Poverty " than any other book or books ever written upon the subject. The results of my work and the conclusions to which I have arrived I now set forth, hoping and believing that they will be useful to the suffering multitudes of my beloved country, and through them to the whole human family. In the prosecution of my endeavour to unite labour and land and capital, I approached the Trades and Labour Congress of New Zealand, and was by that body unanimously appointed its delegate to the Trades and Labour Congress of G-reat Britain. The rules of the English Congress, however, being necessarily strict and exclusive, prevented my admis- sion as the New Zealand delegate on the grounds of VI PREFACE . my not being a labouring man working at a trade^ and that my expenses to England are not paid by the body which I represent. My interest in the working classes may be judged by the contents of this Tolume. It is with deep regret that I gather from the reports of this twenty- first Congress that the representatives still look to politics and political power as the source from whick safety and comfort will be derived by their class. Though unable to speak in this Parliament oF working men, I here point out to a still wider audience that the remedy for the present wrongs of the industrial classes and the only source of hope for the future lies, not in politics, but in economics. The delegates of the Trades Unions of Great Britain will only achieve the enfranchisement of labour by enabling labour to organise for the purpose of the production and distribution of wealth. All the majorities in Parliament will fail to distribute- wealth equitably, and I would impress most earnestly upon the Trades Unions and their representatives that they can more easily join their labour and avail them- selves of fresh sources of wealth from nature for their mutual benefit, than obtain a majority in Parliament,. PREFACE. Vlt useless to them as that majority would be. Were the Trades Unions to approach the co-operative bodies with a view to the production of fresh wealth, becoming their own employers, and drawing forth the treasui'es of Nature for their own subsistence and enjoyment^ they would take the first step in a victorious marcL towards the final triumph of labour. CONTEISTS. Dedication Preface ... Introduction CHAPTER I, Present perilous condition of civilised society caused by want — Absence of any practical suggestion for improvement — 'Antagonism of labour and capital — Not caused by national poverty, or war, or pestilence, nor by causes popularly ascribed, but by inequitable distribution of wealth ... ... ... ... ... 9 CHAPTER II, Gradual cultivation of practical economics — Modern economy founded on a passion for gain — Difference between chrema- a * CONTENTS. tistic and economic, modern science chrematistic — Mon- gredien — Scope of political economy — Blanqui — Theology, politics, therapeutics, and political economy compared — Professor Huxley on liberal education — Uselessness of such advice — Political questions and parties fading — Irish question one of economics and of food — Signer Giovagnoli's speech to the Italian Parliament — Churches waking to importance of economics — Lambeth conference on Socialism — Certainty of successful issue under a proper sysj;em of economy CHAPTER III. Columbus and the true crusade — Gradual rise of economic thought — The mercantile system — Quesnay and the Physiocratic School — The Land Nationalists— Physiocrats —Multifarious springs of wealth — Quesnay the pioneer — Adam Smith and the " Wealth of Nations"— Smith's position — "Theory of Moral Sentiments" and " Wealth of Nations'' contrasted — ^Evil foundation of selfishness — Smith only summarising former systems and adding suggestions as to distribution. His great authority—Its disadvantages — Erroneous teaching as to the source of wealth and measure of value ... ,., ... ... 46 CHAPTER IV. Summary of orthodox economic teaching — J. S. Mill — Mis- taken belief as to scope of Smith's work — Malthus on population— Errors of Malthus— Ricardo's laws of rent CONTENTS. xi PAGE and wages — Laisser /aire— Else of Free Trade— Its con- sequences — Probable disastrous results of unrestricted competition — Decrease of agricultural population in Great Britain — Cheapness of goods useless without means to purchase — Ireland in 1848— Lords' Eeport on sweating ... ... ... ... gg CHAPTER V. Contradictory and uncertain meanings of terms as used by different writers, Whately, Price, Perry and Wealth — Jevons and Value— Are land and labourers capital 1 — Sidgwick — Graham, attacks on theory of economy — The wage fund — Smith in error as to labour being the source of wealth and measure of value — Sismondi, his repug- nance to selfish foundation — Anticipation of disaster from Free Trade — Summary of laws and principles of orthodox economy, their false and erroneous nature — Quesnay and Smith compared — Evil effects of Smith's selfish system — Attempts of economists to dismember the empire . . . 126 CHAPTEE VI. Eemedies proposed by economists for the condition of in- dustrial classes — Poor Law condemned — Legal minimum of wages — Grants in aid of wages — The allotment system — Its advantages and disadvantages — Education — Free Trade and Protection — Uncertainty in many minds upon these rival theories — Both parts only of the laws of Exchange — Tendency of each — Emigration — Difference CONTENTS. between emigration and colonisation — Necessity for pro- viding new fields for surplus population — Systematised co-operative colonisation — Its nature and advantages — Proportionate increase in wealth and population in this century — Aggregation of wealth in few hands owing to ignoraace of laws of distribution 163 CHAPTER VII. Political economy as yet not a science — Senior's claim — Kingsley's denial — Natural development of economic practice — Abnormal modern ideas concerning it — Wake- field on colonisation — Functions of nature — Necessity for labour — Necessity for capital — Gladstone, Fawcett, and Cairns on unequal distribution — Two cardinal errors in orthodox system — First, positive, selfishness as only motive power ; second, negative — Utter ignorance of economists as to surplus or accumulated wealth, and the laws of its distribution — Krroneous canon of distribution — The profits of capital — Senior and Mill examined — Their errors on this point — No distribution of surplus wealth to industrial class ; proportional increase of wealth and population since 1800 — Labour gets no share of surplus wealth — Silence of modern economists on dis- tribution — Guyot ... ... ... ... 195 CHAPTER VIII. Utopian theories — Communal and Socialist plans — Their weakness and errors — Inherent causes of failure in all — CONTENTS. xni PAGE Confusion of morals, politics, and economics in all — American Socialism — J. H. Noyes — Mormonism — Its polygamy — Its economy — Nordhoflf Vineland — Sugges- tions as to drink traffic — Continental CoUectivist plans and writers — Henry George — ^Confiscation of rent value — Illogical and vicious nature of proposals — Defects and wrongs requiring redress — No salvation in politics — True economic science the only source of hope — Identity in principle between George and Socialists — Atheism of ordinary Socialism — Christian Socialists described — General condemnation of modern Socialism — Dr. Woolsey Gronlund's co-operative commonwealth — Nihilism — The International — Its history and end — Hyndman — H. V. Mills — Pauper colonies of Holland — Penal colonies of Australasia — Their wonderful success — The Irish exodus — The present wealth of Irish emigrants in America and the colonies — Keflections upon these three great instances of recuperative human power — The story of Er — Close of Plato's Bepublic — Necessity for immediate action — Time and tide wait for no man — EesponsibUities of national leaders and higher classes ... 230 CHAPTER IX. Necessity for a constructive science of economy, with definite objects — Purposes of such a science — The liquor traffic — Its evils and remedy— Relief for poverty and employment of industry must be permanent — Present antagonism between individualistic and socialistic systems — Antagonism between labour and capital — Necessity for combination — Association or co-operation the only solvent — ^Disraeli's " Sybil "—Necessity for economic changes ... .... ... ■•• •■. ••• ••• 301 XIV CONTENTS. CHAPTER X. Concurrent growth of individualistic and associative spirit and practice — ^Antagonism between political economy and philanthropy — Mr. Goschen's statement— History and nature of trades and labour unions — Friendly societies and co-operative associations — Howell's conflicts of capital and labour — Thorold Eogers — Strikes — Their nature and results — Position of the labourer and capitalist contrasted — Trades unions should become producers of wealth in lieu of striking — Possible disasters both to employers and employed of strikes and lock-outs — Co- operative anxiety to become producers — Failure of eflforts — Proper organisation will effect the desired result — History of co-operation — Its imperfect character and scope — Mr. Holyoake — Rochdale pioneers — Profit sharing — Difference in co-operation in England, France, and Germany— Schultze de Litsch — De Laveleye — First co- operative festival — The Times on failure of co-operative production — Hopeful anticipations — Ralahine — Co-opera- tive failures discussed and compared — All traceable to one cause — This cause easUy avoided — Toynbee and Rogers — Necessity of union between trades unions and co-operators and, perhaps, friendly societies — Vast results possible 329 CHAPTER XI. Civilisation bringing necessity for mutual assistance — ^Defini- tions of some ordinary terms — Political economy — Its nature and objects— Wealth — The factors of production — Production — Exchange and distribution or appropria- tion — Value — Present and proposed systems compared CONTENTS. PAGE and contrasted — Summary of the three systems, mercan- tile, physiocratic, and orthodox — The three classes who aid in producing and exchanging wealth, capitalist, pro- ducer, consumer — All life full of organisation — Money — Specie — Paper currency — Public credit, proportion in which labour, capital, and consumption should share . . . 385 CHAPTER XII. Necessity for voluntary action — Organisation and combination develope the powers of the human race — Application of this truth to the science of wealth — The joint-stock system — Adam Smith on stock-joint companies — Such associations monopolists — Expanded nature and powers of proposed association — Basis proposed — Partnership between capitalists, producer, and consumer — Possibility under such organisatiojis of universal employment and destruction of pauperism — Memorandum of association — Possible prosperity for the multitudes under new system — Objections to State aid discussed — Dilemma of Govern- ment — The great opportunity now offered — Commerce between Great Britain and the colonies 410 CHAPTER XIII. Statistics of occupations of English people — Same causes of depression operating in England, the States and the colonies — The English colonies compared with the great European States — Mulhall's "Fifty Years of National Pro- gress "—Suicides — Emigration — Distribution of wealth — Australasian wool and gold compared — Possible organisa- XVI CONTENTS. tion of all unemployed labour in Great Britain for coloni- sation — Condition of the English people contrasted with that of Continental nations — Probability of war and devastation in Continental Europe — No possibility of escape or field for expansion for Continental Powers — Antagonism between commerce and philanthropy existing through selfish economy — Associative economy harmonises philanthropy and commerce, religion and business — Appli- cation of same principle which abolished slavery to relief of unemployed industry — Necessity for precaution in first experiment — Eequisites for final solution of social problems now exist possessed by the English race — The present time the final crisis in the history of civilisation — Necessity for universal action ... ... ... ... 446 INTEODUCTION. IROJi the fifteenth century down to the present time, the growth of knowledge and the spread of education and of thought have sent changes in the his- tory of the human race and conditions of human society spinning onwards at an ever-increasing rate. But the speed at which modern civilisation has ad- vanced has been in no case regular or persistent. The tide of human progress has, in truth, since the great events of the fifteenth and sixteenth centuries been constantly flowing, and no doubt will continue to flow until the end of time. But the rising of the waters has been neither calm nor regular. The fall of Constantinople and the destruction of the Eastern Empire released a mass of buried learning, and scat- tered over Europe a number of scholars deeply versed in Greek literature and philosophy. A few years before the fall of the Eastern capital, Columbus had been born and already, as a child, had listened with eagerness to the tales of mariners as to the wonders and the wonderlands across the seas. We need not be surprised that the resurrection of ancient philosophy and learning, the discovery of a new world, and the intellectual development attend- ing the Eeformation, should quicken the mental powers A* INTRODUCTION, and inflame the imagination of great numbers of adventurous minds. Twenty-three years after the death of Constantine Palaeologus and the downfall of the Eastern Empire, and fifteen years before Colum- bus, almost heart-broken, sighted the Bahamas, Caxton had issued the first book ever printed in England, and within six years of the " Game of Chess," and yet nine years before Columbus discovered America, Luther was born. Thus, in less than forty j-ears philosophy had been born again, a new world had been discovered, Bartholomew Diaz and Yasco di Gama had doubled the Cape and opened the sea- way to India, the great leader of the Reformation saw the light, and the art of printing, by which the records of philosophy, of discovery, and of invention should be for ever preserved, had been reduced to common practice. Prom that time forth no accident could bury, the hand of no rude conqueror could destroy, the history of men. The records of heroism must for ever stand inscribed upon the golden page ; the long tale of noble purposes and ignoble crimes, the story of success and failure, of virtue and vice, of selfishness and philanthropy, would be graven as with a pen of iron upon tablets of brass. The hopes, the fears, and the struggles of men, their achievements and their failures, were destined to be eternally re- corded to teach and to inspire succeeding generations. And yet the progress of human advancement was not equal. Amid the constant rise ■ of the tide of human INTEODUCTION. 6 knowledge and civilisationj there have been inter- mittent periods of swift advancement and partial re- trogression. And on some occasions periods of such disorder and uncertainty have arisen as seemed to threaten the very fabric of social life itself. The close of the last century and the ending of the first half of the present were, viewed in this light, two notable periods; and no man can predict when, from some unseen and unthought-of contingency, all Europe may be set ablaze, and war, terror, and revolution shatter to atoms the political organisations that now exist. Prom the close of the fifteenth century to the present time, four races have contended for maritime supremacy and the control of colonisation. Spain, which at first seemed likely to become the future mistress of the nations ; Holland, issuing from its storm-beaten home, won by incredible exertions from the marsh and sea; France, both under its kings and the great Jfapoleon; and finally England, have in turn prevailed; but none of the former either to the same extent or with the same characteristics as the English people. It has been pointed out very clearly by several writers that the modern wars be- tween France and England were in truth wars for the possession of great colonies and the extension of great empires. The power of the English people in the earth is now so widely extended and so firmly based, that, without some turn in future history which would partake of a miraculous nature, the English tongue and English influence must prevail above all others '1* INTEODUCTION. within the next hundred years. The era upon which attention is now fixed has produced the most remark- able development of knowledge and practice, in regard to civil and religious liberty which the world has yet seen. Especially is this the case in the three branches of the English people, the United Kingdom, the United States, and the colonies of Great Britain. The foundations of civil freedom are wide and firmly laid. So keen has been the disputation of philosophic teaching and historic criticism, so free and unsparing the discussions upon every possible side of every possible subject which could affect humanity, so strong has that unseen but wonderful influence which we call " public opinion " gradually become, that abuses of all sorts and errors of all descriptions are disap- pearing from the stage of that theatre whereon, for so long a period, they have inflicted sufferings upon mankind. The latter half of the fifteenth century is, as we have seen, the horizon which bounds modern history. From that period the causes and changes which seem likely to result in the final social civilisation of the world gradually rise. The use of gunpowder, the art of printing, the revival of learning and the spread of scientific knowledge, the Eeformation, the con- tinuous opening and developments of new worlds, and in them the establishment of great and free nations, the growth of manufactures and commerce the establishment jof civil and religious liberty, the practical annihilation of space and time by steam and INTEODUCTIOX, O electricity, all help to indicate and to ensure the final development of human society. Two important questions only yet remain to be decided in order to close this volume of the history of mankind. The one being, " What race is to dominate and lead the world ? " the other, " How shall the distribution of wealth be so ordered that labour and industry shall fairly participate in the wealth they produce, and want and poverty exist no more ? " What a heritage has God given to the English ! In Australia I have travelled for months to and fro over thousands of square miles of level fertile land, un- broken by the spade or plough, rich with flowers and herbage, in a climate like that of Spain or Italy, where the air was redolent with the odours of the flowering gum and wattle, seeing but seldom the glance of a human eye or the imprint of a human foot. I have journeyed over hills and valleys in New Zealand, through streamlets clear as crystal, beneath waving ferns and Nikau palms, by snowy mountains which melt into the deep blue of the southern sky, by capacious harbours whose waters teem with fish, over territories as large as Yorkshire, with soil and climate unrivalled in the British Isles, where fruits, — the apple and the orange, the strawberry and the walnut, the apricot and the melon, — ripen in the open air ; where all the productions of a temperate climate grow in almost unexampled profusion ; which, untilled and un- touched, lie desolate and waste. In those colonies alone the whole population of Great Britain and U IHTRODUCTION. Ireland ten times told could find homes and subsis- tence upon lands now lonely and unoccupied, " The wilderness and the solitary place would become glad for them, and the desert would rejoice and blossom as the rose." For the convenience and comfort of this great empire, this "expanded England," we see a world-wide commerce being carried on, while across continents and beneath oceans is stretched the electric wire. Our people also now enriched with knowledge, and daily adding to their stores of accumu- lated wealth, possess, as no former generation pos- sessed, the skill of organisation and the capability of association for all the purposes of life. Bat, strangest fact of all, this great nation, — this people, rich beyond comparison, — having an untenanted estate of at least five thousand millions of acres of land, situated in all regions and in every climate, whose fleets whiten the ocean with their sails or darken the skies with smoke, keeps within its own bosom millions of its children in want, in rags, and in misery. Land, labour, capital, every factor of production, belongs to it in measureless abundance. Its leaders are eminently brave and skilful. Every land and every sea has borne witness to the courage, the en- durance, the patience and faith of those races which inhabit the islands of Great Britain and Ireland and speak the English tongue. Nor are they deficient in wisdom. Especially are they distinguished among the nations of the earth for reverence to God and charity to man. How is it, then, that the materials for national greatness and prosperity lying about them INTRODUCTION. 7 are not made available for the happiness and welfare of the British nation ? Why do the leaders of our people let the masses starve when plenty is within their reach ? Why do those leaders allow the people to be paupers when these armies of workers could in the outside empire become free men^ holding up their heads in the proud consciousness of independence and the dignity of self-respect. The colonies languish for men and money ; England groans beneath the burden of a pauperised multitude and impossibility of good investments. English manufacturers seek fresh markets for their goods, English shipowners seek cargoes and freights and charters for their ships, English patriots toil for the welfare and safety of their country and their race, and English Christians pray for their fellow-countrymen whose case seems now so dark and hopeless. In olden times, when populations increased beyond the capacity of the parent State to support them, they pushed their way to new lands, and founded or conquered new homes. The tribes of Asia, the Phoenicians, the Greeks,, the many armies of barbarians who pressed on and at last conquered the Imperial city ; the rolling tides of Huns, Vandals, Goths, Visigoths, Germans, Saxons, Danes, Normans, did but exemplify the law of nature which forced overcrowded populations to leave their original homes, and " seek fresh fields and pastures new." They went out like Abraham from Ur of the Ohaldees " not knowing whither they went," to cross mountains and deserts, to face the terrors of unknown forests and swim great rivers, — to encounter, perchance, O INTRODUCTION. starvation in the wilds^ or death or slavery in a foreign land. It remains for Christian England, whose senators are the heirs of the knowledge, the courage, and the charity of all time, to keep starving and degraded within her boundaries great multitudes of her people, while the God-given, glorious, unten- anted territories of her mighty empire, and her boundless wealth are offering homes and peace and plenty to them all. Could we but ascertain the numbers of the hordes, vast as they were, which overran Europe, I believe that their united numbers would not equal the millions who are to-day in idleness and want in the home of liberty, the shrine of the faith of Christ, that Britain whose imperial sway extends over waste lands practically illimitable in extent. When the people of Israel were in Egypt, and their cry went up to Heaven, was that cry more terrible than the voice of the daily, hourly agony which rises from " Merrie England " to the eternal throne ? The existence ot such a mass of misery and poverty, of suffering and consequent sin in Great Britain, in the presence of our unparalleled advantages, is a shame and a disgrace. In that shame, in that disgrace, all must partici- pate. The politicians of every name, the philosophers of every school, the churches of every denomination, the press of every class, the nobility, the professions, the universities, the mercantile classes, the universal public, are all more or less concerned and guilty. CHAPTER I. Present perilous conditiou of civilised society caused by want- Absence of any practical suggestion for improvement — An- tagonism of labour and capital — Not caused by national poverty, or war, or pestilence, nor by causes popularly ascribed, but by inequitable distribution of wealth. HE present position and evident tendencies of modern civilised communities call with a voice of imperative authority for the most serious consideration which the human mind can give. The forms of agitation by which modern society is shaken are various, but beneath them all lies the one great wrong which the vast majority of men are com- pelled to suffer, namely, the inequitable distribution of this world's goods. A great part of the popula- tions of our great cities, as well as of the rural districts, are either in a condition of semi-starvation or are liable to be brought into that condition by the happening of circumstances, of which they may be ignorant, and over which they have not the slightest B 10 FEOM POVEETT TO PLENTY; OE, control. The records of daily history are to the reflective miad suggestive of grief and terror, for our instinct teaches us that the want and suffering endured by men in such numerous and diverse forms are not only dangerous, but unnecessary. The earth is broad, nature is bountiful, God is good, and yet amid profusion the multitudes are in want. In the presence of almost boundless wealth, drawn by industry fron nature, the haggard cheeks of millions tell of hunger and privation. This is the true fountain whence flow the agitations which afllict society. This, the wrong, which calls upon every heart not destitute of human feeling to aid in its redress. And it is certain that many hearts are ready to respond to the cry which goes forth so unceasingly from the sufferers of every land. To such these words of the poet utter a summons : — " For the cause that lacks assistance, For the wrong that needs resistance, For the future in the distance. And the good that we can do." No more noble motto was ever written. To per- form these duties, to maintain these principles, men have fought and died in every land and in every age. YoT this martyrs have su3"ered on the rack and endured the flames. For this patriots have bared their breasts to the sword of tyranny. For this women have visited the hospital and prison, and THE LABOUR QUESTION SOLVED. 11 followed tke steps of armies to distant lands. For "this missionaries have gone forth into the wilderness and dwelt among savage tribes. For this Christians faced the lions in the Colosseum. For this Havelock and Gordon, in India and Egypt, fought and fell. For this Peter the Hermit roused the nations of Western Europe to the Crusades ; Arnold of Winkel- reid drew a sheaf of spears into his heart; and Howard " gauged the dimensions of human misery." For this, in the plenitude of mercy, Jesus of Naza- ireth endured the cross, despising the shame. The •one subject for consideration now is how to distribute wealth fairly amongst those who help to create it. " This association of poverty with progress is the great enigma of our times. It is the central fact from which spring the industrial, political, and social ■difficulties that perplex the world, and with which statesmanship, philanthropy, and education grapple in vain. From it come the clouds that overhang the future of the most progressing and self-reliant nation. It is the riddle which the sphinx of fate puts to our <5ivilisation, and which not to answer is to be destroyed. So long as all the increased wealth which modern progress brings goes but to build up great fortunes, to increase luxury, and make sharper the contrast between the house of Have and the house of Want, progress is not real and cannot be permanent. The tower leans from its foundations, and every new story but hastens the final catastrophe. To educate B 2 12 TEOM POVKRTY TO PLENTY; OR, men who must be condemued to poverty is but to make them restive ; to base on a state of most glaring social inequality political institutions under which men are theoretically equal is to stand a pyramid on its apex."* It is not necessary to multiply quotations. The pages of all political economists, the columns of all the newspapers, the records and evidence of Poor- Law Commissions, and the inquiries into the state of the agricultural labourers, the everlasting wail that goes up to Heaven from the poor ; the articles in magazines, the speeches of the leaders of all political parties, and the thrilling appeals for help and for assistance uttered by a thousand voices, all with dreadful unanimity testify to the truth of the assertion made. "What reason have we to suppose that the future condition of our people, even in the great colonies of the empire, under existing economic laws, will pre- sent features in any degree different from the state of Englishmen, Irishmen, and Scotchmen in the United Kingdom ? Clearly none at all. In the meantime, neither in England nor the colonies is any adequate plan suggested which shall change either the operation of the economic laws or those laws themselves, in order to prevent that oppres- sive distribution of wealth which at present makes tho * Henry George, " Progress and Poverty," pp. 6, 7. 1884. THE LABODE QUESTION SOLVED. 13 rich more wealthy and the poor still poorer. So deeply, indeed, has the injustice of the present order of things been felt by the coldest and most dispassionate of men, that they have been willing to pass into the deepest shade of Communism rather than endure the dreadful evils of the present, if no other means of ameliorating the condition of the labouring classes could be found. John Stuart Mill, one of the clearest, most compre- hensive, and impartial writers of modern times, speaks thus : — " If, therefore, the choice were to be between Communism, with all its chances, and the present state of society, with all its sufferings and injustices, — if the institution of private property necessarily carried with it, as a consequence, that the produce of labour should be apportioned, as we now see it, almost in an inverse ratio to the labour, the largest portion to those who have never worked at all, the next largest to those whose work is almost nominal, and so in a descending scale, the remuneration dwindling as the work grows harder and more disagreeable, until the most fatiguing and exhausting bodily labour cannot count with certainty on being able to earn even the necessaries of life, — ^if this or Communism were the alternative, all the difiBculties, great or small, of Communism would be as dust in the balance." With equal energy speaks another writer and thinker of the present day, one truly of more warmth and enthusiasm than our own great countryman, the 14 FEOM POVEETT TO PLENTY; OE, celebrated Belgian economist^ M. Bmile de Laveleye r — " When we look with an unprejudiced eye at the present division of this world's goods, and see, on the one hand, the labourer earning for his daily bread barely what is needful, — less, indeed, than the where- withal to live if there be the slightest possible crisis, — and then turn our eyes to the other side of the picture, and see the owners of property yearly adding to their estates, and living in ever-increasing ease and comfort, it is quite impossible to bring this inta conformity with notions of justice, and one can but exclaim with Bossuet : ' The complaints of the poor are just. Wherefore this inequality t ' " Hear also the verdict of another great Englishman,, John Kuskin : " For most of the rich men of England it were indeed to be desired that the Bible should not be true, since against them these words are written in it : ' The rust of your gold and silver shall be a witness against you, and shall eat your flesh as it were fire.' " Carlyle wrote volumes of terrible denunciations against the state of things which in his time dis- graced his country ; while the whole of one of Disraeli's novels, " Sybil," is devoted to the same subject. Yet, amid all this sorrow, no adequate plan is propounded for its alleviation. It is impossible to conceal the approach of a great conflict between Wealth and Poverty, — between the classes who own THE LABOUR QUESTION SOLVED. 15 the wealth of civilised communities and the poor. The rapid growth of population in Europe, whose increasing millions must find food and homes in less densely populated countries, or starve; the unpre- cedented accumulations of wealth ; and the terrible uncertainty of food for the multitude; the seething and bubbling fears and aspirations of great majorities in the different nations, — are all signs of the times which he who runs may read. Every mail, every daily telegraphic summary of news, contains the record of occurrences which show plainly enough the tremendous forces operating beneath the surface of society, and that we are in truth, as Mr. Hyndman has said, "in the dawn of a revolutionary epoch." There are two causes which conduce to revolution, — oppression and want. In Great Britain both causes operate ; in the colonies as yet neither to any great extent. Colonists, however, should remember that they are merely laying the foundations for future generations. In these new lands, unfettered by ancient prejudices or customs, and as yet possessing wide territories of public lands and sparsely populated private estates, we should endeavour so to shape our course as to avoid the dangers which threaten, older countries, and find a means of banishing poverty. Our political privileges are already great, and we should now unite in the attempt to build up a system of social economy that will ensure general prosperity and cause want to be uoiknown. 16 FROM rOVEETT TO PLEJJTY ; OR, The next proposition which attracts attention in the records of every-day life is that, in addition to the wide and widening separation between wealth and poverty, labour and capital are antagonistic. They live in different camps ; they display different sym- pathies. And the contentions between them in the colonies are as fierce and bitter and prolonged as in Great Britain. No adjustment of differences, no courts of concilia- tion, no reference to arbitration, will or can, under the social economy which has hitherto obtained, reconcile the conflicting interests of capital and labour. While considering the want and poverty which are revealed in modern society as the lot of the great majority of people, it is proper to consider the cause or causes of that poverty. This condition of the working classes certainly does not arise from the decrease of national wealth. No age has witnessed such a rapid and extensive increase of the aggregate possessions of communities as the last fifty years has shown in the British Empire and the United States. While the population of Great Britain and Ireland have not douhled during the last half-century, the aggregate wealth of the United Kingdom has at least quadrupled. Nor has this condition arisen from losses and sufferings entailed upon the multitude by adverse fate in war, such as in other days brought nations into bondage. On the contrary, the wars of the last THE LABOUK QUESTION SOLVED. 17 century have vastly extended and developed the possessions of the empire^ and opened fresh fields, practically boundless in extent, for the production of fresh wealth. Nor can it be attributed to famines, which often- times have reduced people to the point of starvation. Here again the opposite is the case. All regions of the earth have poured forth, and still continue to pour forth, their treasures of food and clothing, of fruit and gold, pearls from the sea, diamonds from the mines, and all the products of a rich and ungrudging nature. Commerce suffers, we are told, not from stinted supplies, but from a continuous glut of over- production. Wonderful paradox ! A continual glut in the markets of the great nation, whilst vast numbers of the English people are ill clad, half fed, and housed in pig-styes. Nor can it be traced to another cause which in the Dark and Middle Ages filled Europe from time to time with suffering" and dismay ; the Pestilence is not responsible. Sickness there has been, the cholera, the small-pox, and the typhus have indeed visited the Western Islands, and have caused bereavement and sorrow in every circle. But the peculiar and remarkable disparity in the social conditions of different classes has not been by them affected. There are some writers who attribute the con- dition of the poor generally to want of thrift, to 18 EEOM POVERTY TO PLENTY; OE^ prodigal expenditure and drunkenness. As for the- " prodigal expenditure " of whicli a man can be guilty who earns twelve shillings a week, and has to- keep a wife and children besides himself, I leave that to others to explain and to define. Nor does it arise from any grave inequality of law or class legislation. The positive laws of a country cannot include within their proper scope and jurisdiction either the production or distribution of wealth. The differences in the eye of the law between the various classes in the State are rapidly vanishing. Yet with the increase of political power- /and influence the industrial population do not enjoy / a corresponding equality and fairness in the distribu- I tion of the national possessions. The reason of this is obvious. The laws and science which govern the production and distribution of wealth are entirely distinct from politics. The- Socialists point to the great public services conducted by the G-overnment, Post Offices, Telegraphs, Public Works, but it will be seen upon examination that these have nothing to do with political or social, economy, strictly so called. They are but services rendered to the public by the public. They do indeed afford employment and thereby the means of liveli- hood to large numbers of citizens and subjects of the Crown. But they do not include the production of wealth from nature ; the manufacture of natural objects ; the commercial dealings between classes,. THE LABOUR QUESTION SOLVED. 19- communitieSj and individuals; or the distribution and enjoyment of created wealth amongst the people. They afford protection and a general power of regulating the conditions of social life. And I believe that the G-overnment of a country^ which^ after all, is but the embodiment and representation of the whole life of the people, may wisely and properly go much further than any Grovernment has yet gone in aiding the voluntary efforts of its subjects to obtain from land and natural agents the means and appli- ances of a life of comfort. By a judicious use and administration of the public lands ; by the interven- tion and assistance of public credit ; by using the vast forces and power at the disposal of Government, not merely to provide postal and telegraphic communica- tion, but to afford also swift, easy, and economical means of transit both for men and merchandise on land and sea; and by encouraging voluntary asso- ciations for mutual help upon a wider basis and with more extended powers than any which have hitherto existed. Governments may yet, without undue interference with the liberty of the subject, lend powerful and useful aid to the nations over which / they rule. The causes which have produced results so emi- nently disastrous and full of peril have been the subject of much discussion and inquiry. The impro- vident habits of the working classes, idleness, drunkenness, ignorance, the maintenance of great 20 PEOM POVERTY TO PLENTY j OR, standing armieSj the strange and unaccountable de- pressions of trade and commerce whichj from time to time sweep over tlie nations like the plagues of the Middle Ages; the rise and spread of Socialistic and Revolutionary ideas, the dependence of commerce upon the precious metals as the sole medium of ex- ■change and standard of value, are all advanced by ■different writers as the cause of poverty among the labouring population. But all these are manifestly inadequate to account for the result so much deplored. ; They would, indeed, be sufficient causes for a general f and universal depression, but they are not sufficient .to afford a reason for the disparity between the con- ditions of different sections of the same community. It is manifest that in almost all countries, especially in those where the lines of demarcation between riches and poverty are most widely sundered and xlistinct, the aggregate riches are increasing at a speed and in a volume heretofore unparalleled. Not one of these causes, therefore, nor all combined, can be sufficient. We must find some other cause for the present condition of things. It is not the absence •of wealth in the community, for that abounds more and more; it is the partial and unequal distribution of that wealth when created which alone accounts for the luxurious profusion enjoyed by the minority, and the absolute or comparative misery endured by the many. Nor is there any hope of a reformation in this matter 'Until some method shall be discovered by which the THE LABOUR QUESTION SOLVED. 21' treasures obtained from nature by human labour shall he, to some extent, fairly shared amongst those who help to produce and create them. If all the causes of poverty and suffering hitherto alleged could be at once destroyed ; if idleness, ignorance, and drunkenness were buried in the past ; if standing armies were for ever disbanded ; if trade were at a permanent level,, i and the restraints and difiBculfcies imposed by a mone- \ tary standard of gold and silver discarded from the.' laws of commerce ; if Socialism and Revolutionary theories were forgotten; and the distribution of" wealth were yet still governed by the pernicious economic laws which now exist, want, hunger, penury, and wretchedness would remain the heritage of the multitude, greater and more boundless wealth the patrimony of the few. The only hope for the future- of civilised mankind lies in the discovery and applica-- tion of a system of economic distribution which shall be at once just and practicable. So imperious is the demand for change and reform in this direction, — so beneficent the end to be ob- tained, — that the highest efforts and the most constant, thought may, with hopes of ultimate benefit to man- kind, be properly directed to the solution of the= problem thus presented. CHAPTER II. •Gradual cultivation of practical economics — Modern economy- founded on a passion for gain — Difference between chrema- tisticand economic, modern science chrematistic — Mongredien — scope of political economy — Blanqui — Theology, politics, therapeutics, and political economy compared — Professor Huxley on liberal education — Uselessness of such advice — Political questions and parties fading — Irish question one of economics and of food — Signer Giovagnoli's speech to the Italian Parliament — Churches waking to importance of economics — Lambeth conference on Socialism — Certainty of successful issue under a proper system of economy. flN every age, tlie production, exchange, and distribution of wealth have been prac- tised. Through the earlier days of liistory a very simple plan existed. The patriarchal age made but little demand upon a scientific system. The head of the household was the owner of all. His children were in a sense, espe- cially as they arrived at maturity, part owners of the family property, although in different countries some individual members of the family were more highly favoured than others. During those primitive periods, when pastoral and agricultural pursuits engrossed the main portion of human industry, there was but little even of practical exchange, and comparatively little THE LABOUR QUESTION SOLVED. 23 •distribution of wealth. Gradually as communities arose, to satisfy the demands of a rapidly-increasing population, when all the diversified wants of society pressed forward for satisfaction, a practical political •economy was developed, suited to the exigencies of dififerent periods and races. Thus all human know- ledge has been obtained. Man has been the same in .all time. In those dim ages, of which no certain record now exists, the history of which mustbe gathered from fable, legend, and tradition, from the pyramids of Egypt, the rocky tablets of Petra, the sun-burned bricks of Nineveh, the golden shields of Agamemnon, and the treasure-chest of Priam, king of Troy, man was as man is now. Heroes brave as Ney or Picton, led their hosts to battle. Intellects as clear as those of Newton or Laplace observed the laws of nature. Orators as eloquent as Burke or Mazzini charmed the ears and hearts of men. Ail through the long record of human powers and of human vice there is no change. Men were as great and as degraded in the days before the historic period as they are to-day. But knowledge has marvellously increased. In all paths of learning men have but gradually become acquainted with the natural laws which govern the different parts and developments of social life. After the family rule had ended, the tribal rule commenced. In this also the weak and the poor were cared for. The very slaves were at least tolerably sure of food and shelter. To this succeeded the despotic form of political government. Here also. 24 FROM POVEETY TO PLENTY; OE^ although the social conditions of different classes were growing moi-e strongly contrasted^ and the distance between poverty and riches widened, there still re- mained till the latter part of the eighteenth century something of the old sympathy and fellow-feeling. Before the time of Christ, Aristotle and Xenophon had taught that a system or science of wealth really existed. As the sanction of Divine authority had in the Mosaic Books been given to the merciful proprietorship of land, and to the kindness of neighbourly feeling, so the Athenian philosopher placed on record the human and mundane foundation upon which even now the science of political economy is built. The great pupil of Plato clearly pointed out the difference between the two branches, or principles, of economic science. The mere desire and. effort to accumulate wealth he denominates " chrematistic."* Chrematistic is solely the art of making money. Economic, on the other hand, is the art of gaining a livelihood, or of obtaining wealth for useful purposes. It is the procuring and. enjoyment of those things which are necessary to existence, and useful either to the household or the State. The very term used to express it, the law or order of the house, is significant. It is a pity that in all the contentions that have raged during this century upon the subject, Aristotle's wise definitions have not been remembered. The two principles have been * Aristotle, De Eep., edit. Bekker, lib. i., c. 8,' 9. THE LABOUR QUESTION SOLVED. 25 •confounded in all modern teaching. Bat there is a ■strong bias towards chrematistic philosophy in all its teachings. " The inextinguishable passion for gain/' says one of the greatest economists,* "the miri sacra fames, will always lead capitalists " ; and nearly all masters of this science agree that this principle of covetous selfishness is the foundation and the key-stone of both theory and practice. It is worthy of remark that many of the modern economists simply con^der the chrematistic science as the whole of political economy. Guyot and Roscher are striking exemplifications of this ten- dency. Among English writers Mr. Mongredien stands pre-eminent in this respect. ' In his book on "Wealth Creation,"t published in 1882, although he does indeed make a doubtful promise as to writing a further book on the co-operative distribution of wealth, he considers the whole subject from the one point of view indicated by the title of his work. To him, as to all the economists, the increase of wealth means the increase of comfort and the means of subsistence for all, especially the "labour- sellers," as he calls the industrial classes. One of his earliest, and undoubtedly his main proposition, is, — "The more wealth there is created, the more * McCulloch, "Principles of Political Economy," p. 179. London, 1830. t " Wealth Creation." London, 1882. Oass'ell, Peter, Galpin, &Co. C 26 TEOM POVERTY TO PLENTY; OR, there is for distribution, and the more ' objects of desire ' fall to the lot of each human being."* It is evident that under our present system this is alto- gether erroneous. Would that it were true. Under a proper system, no doubt, it would be true ; but Mr.. Augustus Mongredien, in common with the rest of the apostles of this school, is ignorant of the nature and laws of the distribution or enjoyment of wealth. The science of Political Economy deals with all that concerns the temporal and material prosperity of men. It is limited to the production, exchange, and distribution of wealth; that is, to the causes which' induce, the laws which govern, the results which follow the production, exchange, and enjoyment of material good. For the human and temporal nature of man, with all its varied wants and desires, so far as they relate to the possession of property in material wealth, this science is the only guide. We may confidently believe that there is a perfect system, of political economy, could we but find it, — a system which, properly understood and widely practised, would always produce from the varied and exhaust- less stores of nature ample provision for every reasonable want of every family upon the earth. Every department of human life is governed by its own appropriate laws, both in regard to this world and the world to come. If the state of mankind,. — at any rate, of that vast majority which in every * Ibid, pp. 1, 4. THE LABOUR QUESTION SOLVED. 27 age is doomed to toilj — is to be improved permanently npon a foundation of independence, of self-help, and mutual help, it must be by a widely-diffused know- ledge of the true laws of economics. " Because I think," says Blanqui, " I have seen in Political Economy a science truly social rather than a theory of finance, I have wished to show as far as the vision of man can extend the providential thread which guides nations in the accomplishment of their destiny. I firmly believe that some day there wiU be no more I Pariahs at the banquet of life; and I find the source' of that hope in the study of history, which shows us the generations marching from conquest to conquest in the career of civilisation. By the progress that has been made I judge of that yet to be, and when I see labour, extricated from the Roman galleys, take refuge in feudal servitude, then organise into corpo- rations and fly across the seas on the wings of commerce, to rest at length in the shadow of political liberty, I feel that there is in economic science something besides a question of words, and I trust I shall be pardoned for having sketched in bold outlines the history of its progress through nations and ages.^^* In the same spirit I, too, seek to discover from the history of the past, and from the theories and contentions of the present, those invariable laws which will give to men the proper reward of their * Blanqui, " Political Economy," Introduction, pp. 32, 33. C 2 28 FEOM POTEETT TO PLENTY; OE, labour, which will disenthral industry from the un- natural servitudes which humau error and selfishness have forced upon it, and which will give new hope and new life to the toiling multitudes of every land. It is not possible, nor would it be expedient, to examine minutely the well-nigh innumerable thoughts and suggestions upon this subject which during the course of history have been preserved to us. It is sufficient to take the main lines of thought, the main principles embodied in different theories, and the results which in such instances have ensued from putting theory into practice. In some cases reason and argument will themselves sustaia or disprove the theories advanced, while in others experience will decide for us the truth or false- hood of principles, and the value or worthlessness of plans. Over such wide areas of thought and action both the inductive and deductive methods may be applied with safety and advantage. One branch of reasoning will teach us to fix definitely the lines upon which the greatest production and fullest enjoyment of wealth can be obtained ; the other may enable us to project more or less luminously upon the future those just laws of distribution which will produce a liappy revolution in the household records of labour. Allusions may be made to and instances quoted from tradition and the days of early history, but it must be borne in mind that it is only since the commence- ment of modern history that the human mind has in THE LABOUE QUESTION SOLVED. 29 any sense attempted to reduce to order the science of Political Economy. " Political Economy/' says a very learned author^* " is not, as we have just said, a new science. It has been a distinct science only a short time. Until the eighteenth century it was confounded with philosophy, morals, politics, law, and history.-" In what manner, under what aspects and phases, and with what success those attempts have been made I shall consider. It is a remarkable circumstance that in regard to the greatest of all temporal questions, namely, the condition of the toilers among civilised communities, and the solution of that problem which threatens, if unsolved, to destroy civilisation itself, no definite principles of action have been agreed to, and neither an object to be attained nor a clear and distinct path to be travelled has been resolved upon. French and German Socialists seem up to the pre- sent day to have formulated no sach plan without the formula itself becoming the rock on which the agree- ment between teachers and professors must be broken and shattered. Even the International, at its last meeting at the Hague, divided into two factions, one holding the tenets of Karl Marx, the other those of Michael Bakunin. The latest apostle of progress, * Wolowski, " Essay on the historical Method," introduction to Eoscher's "Political Economy," 13th edition, translated by J. J. Lalor. Vol. i., p. 25. 30 FROM POVEETT TO PLENTY; OK, Mr. Henry George, in proposing the remedy wticli he offers to mankind, — the nationalisation of the land, or the taking of all rent values as taxation, — is making a proposition which, in the first place, cannot be carried into effect without a revolution, and, in the second place, confers but comparatively slight bene- fits upon the mass of the population. The schemes of English Socialists, as propounded by Messrs. Hyndman and Morris in their most recent speeches and writings, and defined in the Social Democratic Federation, are of the vaguest character, and present no foundation on which to erect either a mental argument or prac- tical effort. That the State can do much is certain, but that the State should absorb all individual effort and crush all individual ambition is impossible. If it were possible, it would only amount to social suicide. There are four branches of science which intimately affect the existence and welfare of men : — Theology, or religious science, which regards the moral conduct of men and their spiritual wel- fare in this world and the world to come respectively. Politics, which affect the relationship of men to each other in human governments. Sanitary Science, which has to do with the study of health and the physical well-being of men; and Political Economy, which relates to and governs THE LABOUK QUESTION SOLVED. 31 the production, exchange, and distribution of all those material objects that minister to the sustenance and comfort of men. Religious truth, so far, at any rate, as it proceeds beyond the teaching of mere morality, depends, and must depend, upon revelation. No system of religion ever yet existed which did not claim as the ground of its authority a revelation from unseen and undiscover- able sources. In all, the foundation of their claims to authority was that a word was spoken by the Unseen and Superior Being to the creatures whom He governed. The Christian faith is in no sense singular in this. Reason itself proves tons that all knowledge obtained regarding a world unknown, undiscoverable, ■and imperceptible to our senses, must, if enjoyed by us at all, be so enjoyed by communication from that world itself. Science can teach nothing concerning ifcs^ laws ; discovery cannot explore its habitations ; experience cannot impart wisdom concerning* it. The fountain and source of all knowledge or belief concerning the attributes and commandments of the Divine Ruler must of necessity be found in revelation. The study of politics is different, for that lies fully within the scope of human thoughts, powers, and. experience. The histoi-y of mankind is mainly composed of (records upon this subject, which has always exer- cised the minds of men. Concerning it, we have arrived through long historic expei'ience, if not at 32 FROM POVHETT TO PLENTY; OH, ultimate perfection, at any rate at approximate justice and wisdom. Especially is this the case among the English communities of the earth. No doubt, further developments of knowledge and an increasing sense of justice will in many directions- advance the practice as well as the theory of true freedom. It is, however, unnecessary and impossible to believe that any complete or fundamental change in our forms of government would advance the interests of our people or settle their liberties upon a firmer basis. The laws of health are manifold : the study of the- structure of the human frame, the operations and workings of the different parts of that wonderful machine the human body, have well-nigh reached perfection. But so completely interwoven are the- mind and the soul with the body of man that diseases, disorders, and maladies of innumerable kinds prove inscrutable to our most searching inquiry and defy the skill of the physician. Political or social economy is yet in its early stages- of development. As we shall directly see, two- schools and two leaders only, and those absolutely recent in time, have as yet attempted to determine and to develope the laws of this science. Yet, next- to religion, it is undoubtedly the most important to mankind. As a true and correct theology must perforce in- clude within its limits a possible happiness and THE LABOUE QUESTION SOLVED. 33- salvation for every living soul, as a perfect and correct system of political government -will have regard to the rights and liberties of each individual in the State; as true sanitary laws will provide for the health of all classes and of every family in a community ; so a perfect system or science of political economy will ensure the greatest amount of production, the widest and most beneficial exchange, and the most complete distribution of the aggregate wealth of a nation or of a district. Until a limit shall be placed to the productive powers of nature ; until population shall have so in- creased as to outrun the possibilities of production, not from onespot, norfrom one country, nor from one con- tinent, but from all thfe earth, a true and wise system of political economy will ensure ever available oppor- tunities for labour, and such rewards to the labourer, as win banish want from the homes of the industrial classes, and will restrict the necessity of charity or eleemosynary aid to cases in which the recipients are physically or mentally incapable to compete in the labours of life. Nay, such a science, carried to its ultimate limits, would provide from the superabun- dance of Nature's gifts a reserve fund, out of which all such cases should, as a matter of public policy and justice, be provided with the means of subsistence. Nor would the benefits arising be restricted to the- certain possession by the labouring classes of ample means of subsistence merely. Time for recreation, at stated and frequent intervals, could be afforded; 54 FROM POVEETY TO PLENTY J OE^ periods of rest for body and mind, for study both in nature and art; and education, both physical and intellectual, would become the common heritage of all. There exists no reason why every boy or girl born into the British Empire or the United States should not participate in those amusements and pas- times which the English, as a people, passionately love. Reason and logic will both show that, under &, system such as I have mentioned, knowledge, which is power, would leave the small and petty channels in which for centuries it has been confined, and flow in infinitely deeper and wider streams, the limits of which should be co-extensive with the existence and capacities of the whole English race. It is difiBcult to regard possibilities so wonderful in the future development of the national prosperity and happiness without an intense desire to behold its- realisation. Under circumstances so auspicious, a new era would dawn upon the world, — an era of peace, happiness, and contentment. Nothing can produce such a state of things but the knowledge and practice •of a new and perfect science of political economy. This must be obvious to the most superficial con- sideration. It must be produced and sustained by the simplest and most perfect rules for the production and distribution of wealth. And these rules, or laws, must and will in their very nature and existence, form a complete and perfect science of political economy. Exceptions may, and no doubt will, exist. To the THE LABOUE QUESTION SOLVED. 35 simple religion of Christ, with its promise of peace here and eternal life hereafter, many are found opposed. The mind can hardly imagine a state o£ politics to which there shall be no opposition. Their name is legion who disregard or treat with contempt the laws •of health. And the coveteousness and selfishness of humanity, the indolence and vice which unhappily <3haracterise numbers in every community, will be marshalled in opposition to the wisest and most just principles of political economy. But truth is mighty and will prevail. Side by side, and, as it were, shoul- der to shoulder, the great principles planted by the hand of the Creator in human existence and character will march onward through desperate conflicts, some- times defeated, sometimes victorious, to the final victory of truth over error. The laws of nature, which are the laws of Grod, are, even to our limited comprehension, at once simple, profound, and perfect. They are, indeed, restrained and limited by each other, but work in harmony. What boundless purposes or infinite manifestation of power and skill may hereafter be revealed we cannot even conjecture ; but we can here and now discern, if we do but study their workings with earnestness, and humility, that each in its appointed place and operas- tions is perfect and complete in itself, though but a part of the universal machinery. Thus Eeligion should include within its control -every thought of the mind, every desire of the heart. 36 PKOM POVERTY TO PLENTY; OR, and every action of the life ; and no religious teaching' or theological science can be true which is not applicable to every human beings past^ present, or to come. So with the science of health. That also must include within its laws and regulations the young and the old, the rich and the poor, the bond and the free together. E'o political science can be correct in every particular and for all purposes, unless in rewards and punishments, in duties and advantages, it includes and controls members of the community, irrespective of any difference in circumstance or condition. In like manner a proper political or social economy must regard and influence the whole people. In these four branches of the universal law of humanity, true science will give fair and equal advantages to all. Differences there must ever be in appearance, in stature, in mental and physical power. No two countenances, no two characters, are exactly similar. The histories of no two lives, the thoughts and wishes [ of no two human hearts, would be or could be identical, and men differ and will ever differ as one f star differeth from another star in glory. Differences therefore there will ever be; difference in wealth,, difference in position ; difference in power, difference in capacity. And yet upon all, equally and fairly, will rest the sanction and control of natural law. And as in the world of Theology the highest moral and spiritual welfare of each individual in the world's THE LABOUR QUESTION SOLVED. 37 countless multitudes is desired ; as in the world of Health true science will aim at the physical well-being of every living individual ; as in a complete political system the widest possible development of individual liberty and safety compatible with the general welfare is the object to be attained j so the true science of political economy will have for its object not only the growth of the aggregate wealth of the human race or of any one portion of mankind^ but also the personal well-being of each unit in the social existence and the widest equitable distribution of communal possessions among the various members of the community. Never before has it been possible to use the terms of logical argument, or to sketch with possible accu- racy the circumstances necessary to such an effort to ameliorate the condition of mankind. When, how- ever, the public mind and attention have been directed to the consideration of a more correct system than has hitherto obtained; when, in lieu of the narrow, selfish, and un-Christian principles which have hitherto guided and controlled the study of this subject, a more benign and righteous theory is received, the world will be within measurable distance of the reign of eternal peace and universal plenty. Of all the sciences which exist it would be difficult to point to one, the laws and phenomena of which lie so completely upon the surface and fully open to discovery as political economy. Production is the result of human effort exerted upon the forces of 38 PROM POVEETT TO PLENTY; OE, nature. Every single article possessed by man has its own history^ which can be discovered and written down. Every fish placed upon the marble slabs of the market has been caught by some hand of man. Bach loaf of breads each article of wearing apparel, the houses in which we dwell, the ships and trains in which we travel, the pictures on the wall, each coin we give in payment for goods or services, our wine and fruit and flowers, our books and watches, each implement of husbandry, each existing article used in business or in pleasure, in peace or in war, from a cricket-bat to a sextant, from an umbrella to an anchor, from the good-will of a business to the price of land, is the result from nature of man^s presence and labour individually or collectively, and its history can be ascertained, its worth valued. In exchange also the agencies and results are within the scope of human knowledge. So too all produced wealth may be traced with certainty to the possession of the ultimate recipient. The exact sciences which proceed by fixed and unalterable laws and language, — the existence and operation of which can be under all circumstances absolutely demonstrated, — are indeed more strict and invariable. But the various processes of political economy lie equally within the domain of fact and history. The difficulties and variations which surround other subjects of investigation do not exist here. No matter of mental speculation or of opinion here defies calculation. No human passion THE LABOUR QUESTION SOLVED. 39' Can prejudice or affect the existence of the facts and processes of production^ exchange, and distribution. Every year so much wealth is drawn from nature and finally distributed amongst men. Every year the national wealth accumulates and is shared out amongst its holders. While the facts can be so surely ascertained the value of true knowledge upon this matter cannot be overrated. No other branch of learning, at any rate so far as this world is concerned, can pretend to equal this in importance. Other studies confer great benefits upon the human family : sanitation, chemistry, music, ethics, astronomy, philosophy, history, mechanics, politics, dynamics, metaphysics, numbers, literature, and the fine arts, each and all add to the powers and pleasures of man. But political economy is that which concerns his food, clothing, and shelter ; the reward of his daily toil, provision for his declining years, bread for his wife and children, the means of existence for them all. It is impossible to argue or reason properly upon the distribution of the good things of this world without having some approximately correct idea of true economic science, and the laws through which that science operates. As every individual instance of sickness is due to some breach of sanitary laws ; as every case of crime arises from the disobedience to moral or positive ordinances, so every 'example 'of' want or poverty must 40 FKOM POVERTY TO PLENTY; OR, be traceable to an infraction of the rules of political economy properly so called. So far^ however, from the truth ai'e all the current systems, that the speculations of economists concerning the wretched condition of the masses are either, like those of Mr. Malthus, diametrically opposed to the religion of Christ, or, like those of the Manchester School, to humanity, and would, if carried to their ultimate con- clusion, produce, first, a condition of capitalistic monopoly unequalled in the annals of history, and last, a revolution which would go far towards realising the dreams and hopes of Nihilism. The increase of I population, however numerous and rapid, ought not ' to deprive one solitary family or individual in the empire of proper food, suitable raiment, and sufficient shelter ; but the great increase of national wealth, if achieved upon the present principles of selfishness, individualism, and unrestricted competition, must lead, ever more and more swiftly as we near the edge, to a Niagara of national destruction. It is depressing, while considering this subject from many points of view and in many different lights, to recognise the wonderful and wide - spread ignorance which exists upon a matter of such vital importance. One might suppose, after reading the very numerous dissertations upon this theme, that every argument had been worn threadbare, that every field of dis- covery had been explored, that every plan possible to THE LABOUE QUESTION SOLTED. 41 human ingenuity Lad been discussed, in or from whicli might be found a system for the amelioration of social suflferings, the abatement of enforced idleness, poverty, and hunger, and the fairer and the more equal distribution among men of the bounties of nature and the rewards of toil. But a discursive view of economic literature is sufficient to prove, beyond doubt, that even learned men are ignorant^ of the pi'inciples which control the distribution of wealth j that they look upon the present unnatural and dangerous position of things as fixed and unalterable ; and that they counsel the wretched victims of the present pernicious and oppressive social economy, to submit patiently and with resignation to evils which, according to them, arise inevitably from the order of nature and the decrees of God. Thus the churches have in their catechisms and from their pulpits preached submission and resigna- tion. Thus, too, the teachers and philosophers of a purely human and materialistic science inculcate the same doctrine. In a paragraph quoted by the Marquis of Blandford, Professor Huxley thus speaks in one of his lay sermons on Liberal Education : — "A workman has to bear hard labour and perhaps privation while he sees others rolling in wealth and feeding their dogs' with what would keep his children from starving. Would it not be well to have helped that man to calm the natural promptings of discontent by showing him in his youth the necessary 42 FROM POVERTY TO PLENTY ; OE^ connexion of the moral law, which prohibits stealing, with the stability of society, — by showing to him, once for all, that it is better for his own people, better for himself, better for future generations, that he should starve than steal ? If you have no foundation of knowledge and habit of thought to work upon, what chance have you of persuading the hungry man that a capitalist is not a thief 'with a circumbendibus'? And if he honestly behoves that, of what avail is it to quote the command against stealing when he proposes to make the capitalists disgorge ? ''* And this is the stuff which the leaders of modern thought offer, not only to the'ravenous multitudes, but also to those who, with eager inclination, desire to lead those ravenous multitudes to a happier future, and are seeking for some pillar of cloud and fire to guide them in the way. These husks that the swine might eat, whether dealt forth from the pulpits of orthodoxy or pronounced by the teachers of Rationalism, are uttered as the gospel of salvation for the people. If in lieu of nonsense such as this, when thus applied, these teachers would show to the hungry multitudes and to their starving children a way by which they might enjoy the bounteous harvests of the earth, breathe the fresh air of heaven, behold the glories of nature, taste the delights of men^l and physical recreation, imbibe some feeling of honourable ambition, and while drinking from the now untasted stream of happiness, have time, * Nineteenth Century, February, 1882, p. 229. THE LABOTJE QUESTION SOLTED. 43 ■opportunity, and inclination to worship God and to rejoice in His goodness, — then, indeed, they would be worthy of the lofty position which they hold among their fellows. This great question modern thought and experiment must solve. All political questions are fading in their significance. All political parties are lapsing into confusion. The old land-marks are disappearing ; the old war cries losing their meaning or their force. The one subject which, so far as the British Empire and the States of America are con- cerned, is destined to pre-eminent and immediate im- portance, is the subject of certainty of food for all, and of some just distribution of the products of nature and of labour among the people. The Irish question itself, which has kept Great Britain in a ferment for so many years, will ultimately resolve itself into a matter of economics and a certainty of the means of subsistence. The evident tendency towards this state of things is more clearly seen and acknowledged in foreign countries and by Continental philosophers and politicians than in England or by English- men. What voice in the English Houses of Parliament has ever given utterance to words so plain and significant as those spoken in 1881 in the Italian legislature by Signer Giovagnoli : — -" The economists and financiers in the chambers pay too little attention to the world outside. They have forgotten the existence of eighteen millions of the working classes who contributed largely to the charges of the D 2 44 FEOM POVEETY TO PLENTY j OE, State and upon whom the tax now under discussion " (the grist tax) "presses most heavily. 'In past times religious belief helped to mitigate the suflferings of the poorer classes^ but now that science has done away with the religious delusion, even the poor aspire in this world to their share of happiness, of bread, of meat, and of wine, and unless science can also do away with the delusion of these necessities, social violence will make short work of legislation and legislators. "J The most satisfactory sign of the present day is found in the earnest efforts of a considerable section of the Eaglish Church to teach and practise a wiser economy than now obtains. The report on " Socialism " at the recent Lambeth Conference is a noteworthy and hopeful sign of this tendency. Every human being has wants, the satisfaction of which is necessary to existence. The aggregate toil of a community, even in the rudest ages, was always more than sufficient to provide the necessaries of life for its members. A great margin of production was always possible, even under the rule of ignorance and the most unfavourable conditions. Now the labour of man can produce far more than enough for his subsistence. Bach year beholds a vast increase in the surplus wealth of the English world, and this too lis achieved in the face of wasted time, vicious economic flaws, the enforced idleness of millions, unutilised terri- itories,andthe expenditure of countless treasures in war, Istrong drink, and useless prodigality. The true worth THE LABOUR QUESTION SOLVED. 45 and power of the great mass of tlie English-speaking race can never be known until all the millions of our people shall be above want and the fear of want; until that position is assured to them as a reward for their labour, until all are able to obtain the elements of a plain education, and until every child born into the world amongst us shall have a well-founded hope of success and happiness in this life as well as in that which is to come. Pood, clothing, shelter, and educa- tion, not stinted in extent nor inferior in quality, may yet be ensured from the cradle to the grave, and that, not as a gift of charity nor a pauper's portion, but as the rightful reward of labour. And added to these such leisure and such participation in, at any rate, some of the comforts and even luxuries of life as will tend to elevate the mind and satisfy the higher wants created by increased knowledge. Removed from the region of despair into that of comfort and hope, — free to think and work for the general good, — how would the efforts of great multi- tudes aid in the general success ? How high would be the standard of public and private life ? A revolution of this nature, to be lasting, must not be brought about by violence, nor accompanied by great and undue excitement. It must be a peaceful change, wrought out by reason, by argument, and by example, resulting from and in accordance with a natural and proper science of wealth. CHAPTER III. Columbus and the new crusade — Gradual rise of economic- thought — The mercantile system — Quesnay and the Physio- cratio School — The land nationalists — Physiocrats — Multi- farious springs of wealth — Quesnay the pioneer — Adam Smith and the Wealth of Nations — Smith's position — Theory of Moral Sentiments and Wealth of Nations contrasted — Evil foundation of selfishness — Smith only summarising former systems, and adding suggestions as to distribution — His great authority — Its disadvantages — Erroneous teaching as to the source of wealth and measure of value. IN attempting a review of the history of Political Bconomyj so far as it has been brought within the boundaries of knowledge as a distinct science, the horizon is limited by that period at which commences the real development of modern civilisation. The dreams of Columbus may yet be found prophetic of the ultimate condition of civilised humanity. For, although in these days almost forgotten, it is certain^ that the one dominant idea in the mind of Columbus while prosecuting his immortal voyage across the Atlantic was the commencement of a great and final crusade. To this end the treasures, the gold and silver, the power and influence which might flow fromi THE LABOUK QUESTION SOLYED. 47 his discoveries were all to be devoted. For ttis lie waited upon the pleasure of kings, braved the mutin- ous disposition of half-starved seamen, faced with triumphant serenity the storms of the Atlantic, and gave to the world a new and boundless heritage across the Western Ocean. For this he implored the prayers of the faithful and the assistance of the brave J for this he sacrificed ease, comfort, and ultimately life itself, while invoking in such a glorious effort the approval and guidance of Heaven. Strange if the dreams of Columbus should yet be realised in a fashion and manner which he never could have anticipated; if the discovery of the Western Continent, and the aid which that discovery lent to the development of modern progress, should bring about a true crusade of mercy and of love, not to rescue the tomb of a dead, but the living temples of a living Christ. The science of Political Economy, so far as that science has yet been developed, so far as any rules and principles have been laid down in regard to the production and distribution of wealth, is altogether, as we have seen, of modern origin. Indeed, the first systematic efforts made to explore this un- known land, were the voyages of Quesnay and Adam Smith into the untravelled realms of economic thought. All earlier plans or theories, such, for instance, as the Theocratic Government of the Hebrews in Canaan, the Eepublic of Plato, the Politics and Economics of Aristotle and Xenophon, or any writings down to the 48 FROM POVEETY TO PLENTY J OE, times of tlie JPrencliand Scotch philosopliers, records of the more modern of which are to be found in Cossa's " Guide to Political Economy," and in Mr. Ingram's able article in the "Encyclopedia Britannica," either contained histories of commercial life and practice, rather than rules relating strictly to the production and distribution of wealth, or disquisitions and speculations upon the fiscal policy of Governments rather than Political Economy, as we understand it. The earliest efibrts to lay a logical and scientific basis for the study of the causes of the wealth of nations, or of individuals, was first systematically attempted within the memory of parents of men now living. From the dawn of history, and from ages yet more remote, the records of which reach us only in legends, songs, and customs, the sole method of ensuring material prosperity to communities or families was the general practice of industry in production, manufacture, and commerce, or the waging of victorious war. Gradually, after the commencement of the modern period, an indistinct, but comparatively general, belief arose in Europe that certain causes conduced to the prosperity of com- munities altogether distinct and apart from the mere industry of their people or the pillage incident to conquest. The shadowy belief then held is known now as the commercial or mercantile system, which, although erroneous in its principles, and pernicious in its results, was the first recognition made of the THE LABOUR QUESTION SOLVED. 49 existence of such a science as Political Economyj and for some centuries exercised a complete ascendency •over the minds of European statesmen. The mercantile system was but a clumsy attempt to interpret one portion or branch of natural law. This system laid down generally as its foundation, one postulate, namely, that all wealth consisted in and was derived from possession of the precious metals, and that commerce, which brought gold and silver into a countrj', alone created it. Thus, capital as developed in the precious metals was the sole source and substance of wealth. The mer- cantile system has still its exponents in those who favour the doctrines of protection, and in the adherents of a metallic standard and currency. When increasing commerce, discovery, and invention compelled the nations to realise the truth that they were all but members of one family, and that there was wealth outside and independent of mere gold and silver, the mercantile system was broken to pieces and crumbled into ruins. The decay of this system preceded and helped to stimulate those inquiries which led to the investiga- tion of the sources of wealth for the purpose of ascertaining the laws which governed production. As exchange had under the old system claimed exclusive attention, so under the new ideas which now began to ferment in men's minds, production assumed not only the most prominent position, but 50 FROM POTEETT TO PLENTY; OE, claimed for itself the sole right to regard. The change thus produced, however, did not merely mean the placing of one portion of the science in the position formerly held by another. It was a far greater change than that, and one of more serious import. It arose from the well-founded belief in th& mind of one great man, that there were laws which, directed the production of all wealth, — considered in its wider sense; and that these laws could be dis- covered and revealed for the happiness of mankind. To this task the one man devoted his best powers. " The celebrated M. Quesnay^^ a physician attached to the Court of Louis XV., has the merit of being the first who investigated and analysed the sources of wealth with the intention of ascertaining the fundamental principles of Political Economy, and who, in consequence, gave it a systematic form and raised it to the rank of a science."* Quesnay assumed as a self-evident truth, and as the basis of his system, that the earth or physical nature is the only source of wealth. Hence his system is called the '' Physiocratic." He divides society into three classes. The first or productive class, by whose- agency all wealth is produced, consists of the farmers and labourers engaged in agriculture, who subsist on a portion of the produce of the land reserved to them- selves as the wages of their labour, and as a reasonable * Adam Smith. Fifth edition. Introductory Discourse, by J. E. McCuUoeb, pp. 40, 41. THE LABOUR QUESTION SOLVED. 51 profit on the capital ; the second or proprietary class consists of those who live on the rent of the land, or on the net surplus produce, etc. ; and the third or uTuproductive class consists of manufacturers, mer- chants, menial servants, etc., who derive their entire subsistence from the wages paid them by the other two classes, and whose labour, though exceedingly- useful, adds nothing to the national property. To the group of philosophers gathered round the three founders of the new system, Quesnay, Turgot, and Gournay, we are indebted for the rudiments of scientific thought and inquiry on this the most im- portant of all temporal subjects to mankind. Quesnay first directed attention to the sources of wealth, to the means and methods of its production, to the mode of its distribution, and to the respective positions occupied by different classes in the light of political economy. In every age monuments have been raised to commemorate the actions of men or the possession of character worthy of the admiration of posterity.- But many of the greatest benefactors of mankind have gone down into the grave silently, leavings behind them not the lofty pillar, the stately mauso- leum, or the sculptured marble, but a thought or word of truth which has grown, flourished, and borne glorious fruit in generations and in ages long after the name and memory of the speaker or thinker have been buried in oblivion. Thus no statue, no monu- ment records the virtue of Quesnay, but in ages yet S2 FEOM POVERTY TO PLENTY; OE, to come, when a true political economy shall, with the blessing of God, have driven want and penury from iihe abodes of men, the meed of praise will be uttered iand loving memories will be cherished of that French physician who, amid the cares, the ambitions, and the tollies of the Court of Louis XV., found time to indulge his feelings of beneficence towards humanity by tracing out the first rude track towards universal plenty. One result of the inquiries and speculations of this group of philosophers, was the proposition by M. Gournay to abolish all existing taxes, and in their place to impose one single tax (Fimpot unique) which was to be based directly upon the rent of all land in France. It will be seen that the reasoning of the physiocrats was founded upon the assumption that all wealth proceeded from land or nature, which was primarily national property, and that therefore all the ■expenses of government must be borne by a portion of that wealth. Hence the proposal to abolish all taxes, and levy one tax upon land and rent of land was, according to their theory, in the highest degree philosophical. The physiocratic system never exerted any power- ful or extended control over the intellect or the ■economic life of the nations. One of its principal errors, as pointed out by Mr. McOuUoch, called by him its " capital " error, lies in its representing the class of artificers, manufacturers, ^nd merchants as altogether barren and unproductive. THE LABOUR QUESTION SOLVED. 53 The physiocratic system^ like the mercantile system, contained a partial truth. Nature is, indeed, strictly speaking, the sole source of wealth, but before that wealth can be developed and enjoyed, labour has to be bestowed upon it, and this in so many forms andi in such manifest and diverse directions that for all practical purposes nature and labour are co-operators as the producers of wealth. Nor is the physiocratic system without its disciples and exponents in these days. Two of the most prominent are Mr. A. R. Wallace and Mr. Henry George, both of whom, espe- cially the latter, in the promulgation of the theory of land nationalisation, take up almost the identical posi- tion assumed by Gournay. The teachings of the- modern masters are uttered in clearer light and with greater knowledge. Yet even under these favourable circumstances, their theories and arguments do not compare favourably with the logic, the common-sense, and the philosophy of their intellectual progenitors. It is somewhat remarkable that Mr. Henry George, in his now celebrated book, " Progress and Poverty,"' advocates and claims the authority of Quesnay for ad- vocating the identical plan proposed by Gournay, that of a solitary tax upon the rent values of land. The premises and principles of . the physiocrats are im- perfect. In the wide and general sense in which they seek to use and to apply the term, wealth is not solely derived directly from land. Nor are the classes properly divided in their theory. 04 FROM POVEETT TO PLENTY; OE, The swift, but gradual increase, of wealth in modern communities is the result of a complex system of causes and results. The great river of national pros- perity is fed by a thousand rills. Agriculture, manu- facture, commerce, art, science, literature, the pastures which sustain ever-increasing flocks and herds ; the earth, whence come coal, iron, gold, jewels, silver, copper, and other treasures, forests, harvests, and fruits, fish from the sea, all help to swell the deep and mighty volume of that tide whose streams are sufficient to fill the cup of human enjoyment to overflowing. One class of material possessions is found in the spontaneous gifts and treasures of nature ; another is the result of individual industry ; another is produced by organised labour and the use of machinery j while yet another is the result of the aggregate existence or labour of the whole society, irrespective altogether of individual efibrt. The wonderful development and imexampled increase of national wealth in England or the United States, for instance, clearly arises from all these causes combined. It is not as Henry George teaches while following the physiocratic doctrine, the growing value or the use of land alone which gives this marvellous accretion, nor is it, as the Socialists teach, the difference alone between the wages and produce of labour, nor, as the orthodox economists assert, the result of free trade, manufactures, com- merce, and unrestricted competition solely. Manufacture in its varied developments adapted to THE LABO0K QUESTION SOLVED. 55 a thousand uses ; art, invention, and adaptation, all help to create wealth. They take the rough material vsrhich nature provides and shape it in innumerable fashions, join it in innumerable combinations, and use it for innumerable purposes. Iron is provided by nature in the ore ; man reduces it to a pure metal, cleanses it, converts portions of it into steel, and creates ultimately fx'om the dull stone upon the mountain-side, or from the deep mine, millions of articles of use, of comfort, and of ornament. The •oak is grown by nature in the forest, but the hand of man seizes it and shapes it into dwellings and furniture for those dwellings ; into ships to carry the fruits of distant countries over seas : thus in many ways and fashions creating from the material primarily provided by nature the wealth which sustains and enriches human existence. Wide areas of land, fertile plains and valleys, advantageous conditions of climate, the riches which nature bestows in her favoured regions, are by no means necessary to a people as their own in order that they should become prosperous and wealthy. Witness the rise and pro- gress of Holland and the overwhelming opulence of the Great Britain of to-day. Regard the history of the Mormon settlements in the deserts of Utah and the comparative prosperity and comfort of the Swiss. What made Genoa rich and famous ? What built the palaces of Venice upon her silent waters, and filled those palaces with silk and gold and velvet and 56 PEOM POVEETT TO PLENTY; OB, the fruits and productions of many ]ands ? What in ancient days made Tyre and Sidon centres of luxury ? or to-day fills London and Liverpool and Manchester with treasures ? The weavers and the looms sent forth in ancient days the Tyrian purple, and to-day disperse the textures of Manchester. As the har- bours and docks of ancient times gave homes to trade and filled with wealth the houses of their merchants, so now the Thames, the Clyde, and the Mersey are crowded by forests of masts, and the air is darkened by the smoke of steaming fleets which enrich Britain with their commerce. Manufacturers, artificers, and the many workers in the difiEerent callings of life, are also engaged in creating, producing, and adapting those articles which tend to swell the aggregate possessions of mankind. The spirit of enquiry was during the latter half of the eighteenth century fully alive. Between the years 1750 and 1789, when the storm of revolution burst upon France and Europe, the minds of men were in a state of great excitement. Every subject was dis- cussed, every principle attacked, and every theory analysed. It became evident that the doctrines of the physiocrats were not sufficient to satisfy the demand for information upon a subject of such great importance. As the mercantile system was but a clumsy attempt to reduce the methods of exchange into order, so the investigations of Quesnay, and the principles he deduced from them, were merely a crude THE LABOUR QUESTION SOLVED. 57 effort to elucidate the laws of production and to demonstrate the source of wealth. This was the sole object aimed at, and even in this it was but partially successful. The imperfect and fragmentary character of the principles laid down by these economists rendered it impossible for the physioci'atic system ever to assert itself with effect as a complete method. The great value of the work of Quesnay is this, that it revealed the existence of political economy as a distinct science. A new continent had been dis- covered. Its hills and valleys, forests and streams, its climate and productions might be unknown, but its existence was demonstrated beyond a doubt. And it was' certain that, in a time of such exceeding mental activity and intellectual doubt, other men would follow in the steps of these discoverers and seek to explore the treasures of the new world. In the mercantile system wealth had been treated separately from other matters, but wealth had been restricted in meaning to the precious metals, and the only method of obtaining it was by commerce. The speculations and investigations of Quesnay were altogether of a different character. He altered and enlarged the popular conception of wealth, and he it was who first investigated the sources from whence it was drawn, as well as the laws which governed its production, and gave to such inquiries form and method. Although Quesnay was the first to open the path E 58 fEOM POVERTY TO PLENTY J OE, of Critical investigation, there can be no doubt that to Smith belongs the chief position in the ranks of philosophical enquirers into the laws and principles of political economy. In the year 1776, after long and careful prepara- tion, Adam Smith gave to the world his " Enquiry into the Causes of the Wealth of Nations," a book which from that time to the present has been the one foundation of political economy. As the French philo- sopher had been the first to attempt to demonstrate the existence of such a science, Adam Smith was the first to lay down the laws which regulate production, exchange, and distribution. A great step was taken by the physiocrats in the assertion that there was a definite source of wealth, and that it was produced according to fixed laws. But the work of the Scotch philosopher in striving to reduce all the phenomena involved in the production and distribution of utilities, to lay down the maxims and the principles which govern manufacture and commerce, and to adduce motives of universal appli- cation from a multitude of chaotic facts, was a work of the highest order of intellectual power. It is of little consequence that both Quesnay and Smith, while cor- rect in some of their main propositions, were on others completely wrong, and in all possessed but partial knowledge. The fact remains eternal that they demonstrated the distinct and separate existence of a science before known only as a part of general THE LABOUR QTJESIION SOLVED. 5& philosophy, — a science which, when elaborated by others who have taken advantage of their labours, will endow humanity with perpetual abundance and give for our temporal and material wants the same blessings which the religion and the faith of Christ bestow eternally upon the soul. Adam Smith, when composing this great work, occupied the chair of Moral Philosophy at Glasgow, and was engaged in a series of ethical teachings, of which the enquiry into the causes of the wealth of nations was but a part. Smith, in writing his " Enquiry " was completing a work intended to be an integral part of a wider dis- cussion than was contained within the limits of that book alone. In his " Theory of Moral Sentiments," which had been published some years before, he pro- ceeded upon the assumption that the groundwork of man's moral nature and action was sympathy. In the later part of his compendious attempt to expound the laws which govern the existence and conduct of mankind he approached the consideration of those causes which conduce to material prosperity. From this point of view the sagacious Scotchman recognised the fact that sympathy was not in the pursuit of wealth the prevailing principle or moiive power. In all matters, therefore, pertaining to the acquisition and retention of property, he laid down the principle of selfishness as the governing and ruling force. In short, while in the world of morals man was regarded E 2 60 FEOM POVEETT TO PLENTY; OK, as a being, not only capable of, but largely influenced by, the divine principle of sympathy, in the realm, of business and the individual ownership of property, he was placed entirely beneath the domination of the lowest and meanest of all motives — that of selfishness. To the present day this teaching has been accepted. The selfish system has been taught in every school and in every university. It has infected every branch of trade in every civilised land. It has been recog- nised by legislators and endorsed by Governments; Philosophers have adopted it, the ministers and mem- bers of the churches have preached and practised it; and after a century of rule ib has so engrained itself into and become interwoven with the mercantile life and conduct, especially of the English race, as to amount to a second nature. It has destroyed the kindly feelings, the genial relationships which once existed between capital and labour, between employer and employed. It has brought with it in the race for wealth, the hurry to be rich, that unrighteous and merciless competition which has well-nigh ruined the reputation of our manufacturers, which has turned the multitudes of our labouring classes into mere machines, and which has sacrificed all affection and every principle at the shrine of gold. It has per- meated every rank and all callings in the State ; it has weakened the patriotic spirit of Englishmen, and, more than all other causes combined, it has beclouded the spirit of the nation with scepticism and infidelity. THE LABODE QUESTION SOLVED. 61 In these two cardinal but opposing points of Smith's theories are contained the principles which during the last century have been and still are engaged in a desperate and so far endless conflict. This conflict is waged over every department of human life. It has roused an intellectual warfare, which at this time engages many of the greatest minds. Beside the question of the future condition of the working classes other subjects are comparatively trivial. Discovery, invention, political reform, the balance of power, and the thousand and one subjects of public debate are but of passing interest. It is with this question that political economy is particu- larly concerned. " The poor ye have always with you " was spoken nearly nineteen centuries ago in a land and at a period in no sense under similar conditions to those which now exist, and still the poor are with us. Not so much, indeed, are the dreadful features of poverty revealed in the new countries where land is cheap and labour dear, but in older communities and in the great centres of population especially, the masses of the people have become the subjects and possessors of poverty more dreadful than that which any former generation of mankind has seen or suffered. More dreadful because of the vast opulence which accom- panies it, because of the education which has sharpened the appetite of the multitude for better ■62 FROM POVERTY TO PLENTY J OEj things, and by which the working and labouring classes are taught that the splendour and luxury upon which they gaze with ever-unsatisfied desire are the fruit of their toil, the produce of their labour. The almost immeasurable distances which separate extreme wealth from extreme poverty are not as yet prominently seen in the colonies of Great Britain, but as surely as the day dawns and season follows season in the course of nature, so surely the same economic laws which have produced in other lands the terrible contrast between luxury and want will, as years roll by, produce similar effects even in the richest colonies. Unless land and capital become the co-operators with, instead of the masters of, labour, there are those now living who in these new lands will yet look with longing but hopeless eyes across the deep abyss which will separate poverty from riches amongst them also. This subject is one which is fairly and properly within the scope of scientific enquiry. There is no more reason to expect a divine or miraculous revela- tion concerning the laws of political economy, than there is to expect a revelation from Heaven concern- ing the nature and application of steam, electricity, the differential calculus, or representative govern- ment. In one sense the poor will indeed be always with us. The widow and the orphan, the lame, the halt, and the blind, the impotent and imbecile, the sick THE LABOUK QUESTION SOLVED. 63 and aged, the victims of accident and cruelty, these and others of similar classes will furnish " the poor " to whom our charity will ever be called forth. But that the able-bodied, the industrious, the great armies of toilers who produce the stores of wealth which enrich modern life should be poor, in this sense, is a scandal and a shame. They are only poor because we are governed by erroneous economic laws. The science and philosophy necessary to enable us to make and to alter the laws governing both the pro- duction and the distribution of wealth, are no more •difficult to discover than those sciences and that philosophy a knowledge of which enables us to con- struct the safety lamp or "put a girdle round the ■earth in forty minutes.^' There is no subject about which, in its remedial aspect, so little is known. Certain principles have been deduced from the workings of the various cus- toms of trade, taxation, exchange, and the inter- aspects of land, capital, and labour. The laws which now govern the relative positions of these three last- named forces have been laid down with considerable •clearness and certainty, and from them we can see that, while the production of wealth is marvellously increased, its inevitable tendency is to aggregate in the bands of the owners of land and capital, while the owners of labour simply obtain sufficient to pre- serve that life and those energies which are spent in the creation of wealth which others enjoy. In the 64 PROM POVEETY TO PLENTY j OE, earlier periods of English history under the feudal tenure, the great land-owners held their land in fee from the Crown, either directly or indirectly. The labourers who tilled the land were generally serfs, subject equally with the estates themselves to the lord of the manor. In those days all manufacturing industries were conducted upon a small scale. A master workman, employing a few assistants, held the place now occupied by the mill-owner with his thousand hands, and a merchant owning two or three shallops, carrying in the aggregate perhaps four hun- dred tons, and manned by thirty or forty sailors, held the same relative position to commerce as is now occupied by the owners of great ocean lines, whose machinery drives a hundred thousand tons of freight- age, and whose crews are well-nigh as numerous as the mariners that followed Howard, Drake, and Hawkins to the destruction of the great Armada. In all branches of commerce, of agriculture, and indeed of civilised life generally, the employer was looked upon as the guardian, the ruler, and the friend of the employed. And although wages were small, and many comforts the labouring classes now enjoy were then absolutely unknown, yet there was generally a certainty and a regularity of employment which was a guarantee to the workers, at least of the means of subsistence. Besides this, the country sustained a large class of yeomen or small farmers, who, from father to son, through many generations, lived in THE LABOUR QUESTION SOLVED. 65 sturdy independence and in comparative comfort npon a few acres of their own land. Then, again, every village had its common land, whereon the cow, the pig, the geese and other poultry, or the horse or donkey of each villager was maintained. Gradually things changed. Serfdom, on the one hand, was a.bolished ; but, on the other hand, the com- mons were taken, the lands of the great landed pro- prietors were released from any equitable or moral right which the people had in them, and became the absolute property of the lord of the soil. Old ties were broken, and no new ones made. Gradually, too, the yeomen perished. The causes which led to the extinction of the fyeomanry of England are too various and important to be here discussed. The result, how- ever, is that the yeomanry have passed away, and their small holdings have merged into the estates of territorial magnates. To a great extent also with the- commons the villages to which they belonged hava vanished; the dwellings of the labourers have de- teriorated; and though wages are in many districts higher, and many of the comforts of life cheaper than in olden days, yet the condition of the agricultural labourer is much worse by comparison than it was four centuries ago. The workman is now a free man, and, compared with his progenitors, an educated man. If not taught in the schools, he has learned from the increasing progress which he beholds everywhere- around him. In the railway carriage he visits the ^6 PEOM POVERTY TO PLENTY; OE, great towns ; the newspaper gives him intelligence of all that is going on from day to day in the most dis- tant portions of the earth ; in the village ale-house he hears discussed, with more or less accuracy and infor- mation, the leading topics of the age. So life itself for him is a great public school. When he beholds the vast accumulation of wealth in the hands of the higher classes, which affords to them the luxury, the ease, the social distinction, and the means of enjoy- ment denied to him, and when he reflects that this wealth is mainly created by the toils of himself and his fellow-labourers, he is naturally filled with discontent and envy, wherein may yet, perhaps, be found the seeds of anarchy. Amid such circumstances he is exposed, on the one hand, to the teachings of Socialistic advocates ; and, on the other hand, to the inculcation of the doctrine of passive obedience, and to that blasphemous as well as puerile philosophy which would enjoin him to submit meekly, in the name of reason or religion, to a condition of things which is abhorrent to every sentiment of justice and to every feeling of humanityj such as that which I before illustrated from one of Professor Huxley's lay sermons on " Liberal Education." Which teaching is most likely to find a lodgment and an echo in his heart ? In the same manner, the small industries of old, in which master and servant were to a great extent friends and companions, have yielded to the advancing TEE lABOUE QUESTION SOLVED. 67 requirements and increasing capabilities of the great machine and factory system. In these hives of in- dustry armies of operatives^ controlling and working machinery which multiplies their labour a hundredfold^ produce manufactured goods which supply the wants ■of nations. Wages here also have advancedj but freedom of person, of speech, and of thought have created wants, reasonable in themselves, but which cannot be gratified. Were we to traverse all the varied branches of human industry, we should find the same unsatisfied wants of the multitude filling the mind with discontent and the heart with bitterness. The sailor, bringing from distant lands through storm and danger the products of every clime, has to be content with the wretched pittance for which he has braved tempests and endured privations, while he beholds the great stream of wealth which he has helped to guide into London or Liverpool or Glasgow flow into the co3"ers of his employer, or of the merchants whose splendid warehouses line the banks •of the Thames, the Mersey, or the Clyde. So, from the deep recesses of the mine, from the loom of the manufacturer, from the counter of the great shop-keeper, from the cellars of vast breweries and distillers, from every scene of toil, the same sense of injustice and unsatisfied longing is experi- enced. This law is not created by any statute, for step by step all positive laws which enjoined and con- firmed those circumstances which operated against 68 FKOM POVEETY TO PLENTY J OE, the interests of the labourers, have been altered or repealed. It is not announced nor supported in the moral law ; indeed, its very existence is an absolute and entire contradiction of the second great Com- mandment. In reviewing the social condition of the great majority of men, — the wage-earners of society, — it became necessary to give some reasons for the poverty of the many and the opulence of the few. Smith and his followers, including nearly all the masters in that school, have assumed the truth of certain principles, by which to account for the great disparity existing between the conditions of the different classes of society. Throughout the whole of their writings the central sun of their system is capital. This capital, to which they individually ascribe different attributes, and to which they apply different and divers definitions, is exalted by them to the position of a deity. It is capital which employs labour, and while the labourers have, according to the laws thus laid down, to be content with the bare wages of subsistence, the profits of all commerce, of all manufacture, of agriculturej and exchange are offered upon the altar of capital. It is, in truth, the worship of Mammon ; orthodox political economy is- its revelation; political economists its priests j capita- lists, speculators, and middlemen its worshippers > and the toiling multitudes its slaves and victims. So far as Adam Smith and all those who have THE LABOUR QUESTION SOLVED. 69 succeeded him in teaching upon the subject are concerned, two assertions may with confidence be aflSrmed. The first is that the historical facts collated and examined, and some of the principles deduced therefrom, are of great value to every student in this department of knowledge. Such, for instance, are the laws of supply and demand; of com- petition, so far as its effects are concerned ; the laws of wages now existing, as propounded by Ricardo; the principles of combination and co-operation of labour, more fully demonstrated by John Stuart Mill and Professors Cairnes, Fawcett, and Sedley Taylor. The thinkers of all nations during the present century, whether the Socialists of the chair, the school of historical criticism, the French, Italian, and other Continental thinkers, Sismondi, Jean Baptiste Say, and his very able but unstudied successor Blanqui, Victor Hugo, Louis Blanc, together with the whole range of English and American economists down to Henry George, Karl, Marx, and H. M. Hyndman, all resort to the work of Adam Smith as the fountain- head of knowledge upon this subject. The very value and importance attached to Smith's work is, perhaps, the main reason why so little progress has been made during the past century. The history of nations and communities ; the knowledge which during the last fifty years has been gained as to the effects of commerce; the new principles of combined action discovered through the extension 70 FROM POVERTY TO PLBNTT ; OE, of co-operative social laws and customs ; the advantages possible to be derived from an exhanstive enquiry intOj and a comparison of the foundations and principles of the three schools of economic science,, have all been overlooked in the species of religious faith with which the work of the great Scotch philo- sopher has been regarded. This devotion, both of teachers and students, has blunted the edge of analytic criticism. It has enabled erroneous principles and manifest inaccuracies to stand unquestioned in the canon of belief. In the face of confusion, strife, inequality of conditions, and the appalling contrast between luxury and famine, which are the fruit and harvest of the present ortho- dox economy, the certain and necessary result of the false foundation and the false principles of the science as it now stands, it still, from every school and from every chair of the civilised world, teaches the mistaken creed of Adam Smith,^the gospel of greed and selfishness^ The guiding and controlling principles thus propounded, upon which the present acquisition and distribution of wealth absolutely depend, are only evil, and pregnant with mischief and suffering. The basis is utter selfishness. Capital is the supreme ruler, the aggrandisement and enriching of self by the labour and privation of others is the one object ; the result is the dethroning of justice and mercy, and the reign of covetousness, which is idolatry. THE LABOTIR QUESTION SOLVED. 71 Adam Smith does little more than summarise and improve the two previous imperfect theories. The Scotch philosopher endorsed and strengthened the belief that political economy is a distinct science. He showed clearly the errors and imperfections of the mercantile system, and proved beyond a doubt that the science was broader and more comprehensive than the physiocrats supposed. Smith hadj however, no apprehension of the true nature or boundaries of his theme. Every word of the title of his book is significant. It is an " Enquiry " only,^and it enquires merely as to the causes of the wealth of nations. And its final limit is the causes of the wealth of nations, not of families or individuals. This was the scope of his argument. The distribu- tion of wealth when produced among the families or individuals, and its enjoyment by the different sections or classes of the community, did not form an import- ant part of his self-appointed task. The question of distribution might, and did, arise incidentally, but the direct scope of his enquiries embraced only the causes of national wealth, and nothing more. A complete system of political economy must go much further. In any review of the subject it is not at all necessaiy to advert to the multitude of matters upon which Adam Smith wrote in his celebrated work. That book, while it contains the first attempt made to treat 72 . FEOM POVBETT TO PLENTY ; OE, the subject systematically embraces also a large number of matters properly falling under other heads and branches of knowledge. It is indeed a mine of wealth from which the student may enrich himself upon many important subjects, from the ■expense of supporting the dignity of kings, to the history of the Bank of Amsterdam ; from the inci- dence of taxation to the cost of education ; from the rise and progress of cities and towns after the fall of the Eoman Empire, to the public debts of modern nations j the cause of prosperity of new colonies, and the costs and defects of standing armies. Useful as Adam Smith has been to the world, venerated as his name must ever be, yet we may well rejoice at the rise of a new school, whose formulae are ^iifferent from his, whose teachers and disciples will speak a different language and learn and practise different laws. Human nature revolts at the deadly coldness of unmitigated selfishness, and all its best instincts prompt to association and sympathy. Against the errors of the orthodox philosophy a great war has risen. McCuUoch says of Adam Smith that one of his greatest claims to renown is this : that "in opposition to the economists. Smith has shown that labour is the real source of wealth," But the economists of whom McOulloch spoke, the school of the physiocrats, were in reality a great deal nearer to the truth in this matter than Smith and those who have followed him. THE LABOUE QUESTION SOLVED. 73 For- nature, aud not laboaT, is in deed and truth the primal source of wealth. Labour, whether mental or manual, is necessary to produce or utilise it, but it is produced from nature. In many paths nature herself spontaneously produces it, and but scant labour is required to fit it for human enjoyment. Were it not that the dictum of Adam Smith has been accepted by nearly all succeeding writers, and has provided a battle-field upon which the most seri- ous conflicts of modern thought have contended, it would seem almost childish to enter into any argu- ment or cite any illustrations to prove that nature and not labour is the real source of wealth. The mines of various treasures, the exhaustless fertility of .the earth, the laws interpreted and de- veloped by invention, the triumphs of art and of literature ; everything which ministers to man's life and happiness are all contained in or produced from nature. Labour, indeed, draws forth and utilises these treasures, but all the labour in the world with- out the elements and forces of nature could not create a single block of coal, a square foot of timber, an ounce of metal, or a grain of wheat. When, there- fore, the world rings with disputes between capital and labour, and the nations are harassed by the exist- ence of starving multitudes, the very existence of whom forebodes disasters innumerable, and, at the same time, both those who attempt to defend and to maintain the present order of things and those who 74 FROM POVEETY TO PLENTY J OR, attempt to overturn it are basing their arguments upon the erroneous assumption that labour is the real source of wealth, it becomes necessary to place the subject in its true light. For the arguments are use- less and the illustrations vain, if the premises admitted upon both sides as correct be in reality untrue. Nature is the source of all wealth ; labour is the instrument by which it is rendered available, whether in agricul- ture, manufacture, in exchange, or in adaptation. Capital is that which assists and supports labour, while drawing forth from nature and rendering avail- able for human enjoyment all upon which life is main- tained and by the enjoyment of which comfort is bestowed. Nearly all the recognised teaching of modern days has, more or less, accepted and insisted upon the truth of Adam Smith's assertion, that labour is the real source of wealth and measure of value. Not only do the more distant masters of the modern schools insist upon this, but it is still retained as a funda- mental axiom. So indistinct are the ideas of the most recent writers upon this subject, that, though some of them perceive the weakness of the argument by which it is attempted to support this theory, yet they do not perceive the simple truth which, by its mere exist- ence, contradicts the whole of the scientists. Even the clear intellect and logical mind of M. de Laveleye are sorely puzzled at the difficulties pre- sented by orthodox scientific teaching upon this point.. THE LABOUE QUESTION SOLVED. 75 In that very excellent and useful book^ " Socialism of To-day," De Laveleye devotes a considerable amount of attention to the doctrines promulgated by Karl Marx, especially in his last work, " Das Kapital." The Belgian philosopher states that "Marx bases his system on principles formulated by economists of the highest authority, Adam Smith, Ricardo, De Tracy, Bastiat, and the multitude of their followers. In reaction [against the physiocrats, who derived all wealth from nature. Smith asserts that labour is the source of all wealth. He even makes labour the measure of values. ' Labour alone,' he says, ' is the ultimate and real standard by which the value of all commodities can^ at all times and places, be estimated and compared. Equal quantities of labour, at all times and places, may be said to be of equal value to the labourer.' "* De Laveleye then proceeds to show that all the modern economists have followed Adam Smith, and that, accepting this definition as true, the reasoning of Karl Marx and other Socialists is absolutely conclu- sive. He then goes on to argue the question^ disput- ing and refuting the propositions laid down by Adam Smith ; but very strangely, after conclusively proving the fundamental principle of Smith and of the SociaKsts that labour is the sole source of wealth to be incorrect and erroneous, he leaves the subject altogether with- out attempting to advance any affirmative statement * "Socialism of To-day," translated by Orpea, p. 23. P 2 76 FROM POVBETT TO PLENTY J OE^ upon this most important point. Some writers accept a truer system of philosophy, and admit that nature is the primal source of wealth, while labour, both of the mind and hand, is the force which reduces it to human possession and prepares it for human enjoyment. But no writer, so far as I am aware, has attempted to de- duce from these general statements those important consequences which flow from so simple a fact. Nor would the position taken up by Marx and the Socialists be at all weakened through the admission of a wider and more correct principle into the argument. The assertion that the labourer receives only a portion of the real value of his labour is incontrovertible. Were it not so, the wealth which is produced from nature by labour would go to the labourer, which it does not, for there is a perpetual and increasing surplus of accumulated wealth remaining in the hands of the capitalist or propertied class after the wages of labour have been paid. The admission of the true principle lends another condemnation to the present system. For it proves beyond doubt that an additional wrong is inflicted upon the industrial classes beyond those which the Socialists themselves assert. The wealth of nature is the common property of all. Tha discoverer of any new source or fountain of wealth in nature, whether a mine of gold or coal, or new un- inhabited lands, or the application of the laws of nature to machinery in production or manufacture, is, no doubt, entitled to consideration from the public. THE LABOUR QUESTION SOLVED. 77 It may be safely asserted that beyond such recognition or reward, no individual or group of individuals has any natural right to appropriate and monopolise the powers, forces, and capabilities which the Creator has placed as an environment for the present condition of mankind. To take from a man a portion of the real value of his labour is, without doubt, to do him a grievous wrong. But when, in addition to this, that portion of natural wealth which is his birth-right im- prescriptible, and bestowed upon him by the Creator, is also taken from him, this is to do him a further injury. The second proposition contained in Adam Smith's theory, that labour is the criterion and measure of value, is equally untrue and illogical. Labour is no more the measure of value than it is the source of wealth. The value of labour must arise, either from the intrinsic worth of the labour itself bestowed upon some object, or the object on which it is bestowed, or which it produces. How is it possible to make labour, — that is, both mental and manual labour, — of the same intrinsic value or utility ? The immortal pro- ductions of Plato and of Shakspeare, of Aristotle and Bacon, cannot be contrasted nor compared with the work of a ploughman or the writing of an unknown village scribe. The marble upon which the chisel of Phidias had produced the image of life, the canvas upon which the brush of Raphael had imprinted the face of the Madonna, could not be measured or 78 FBOM POVEETT TO PLENTY; OB, gauged, by any common standard of value, witli the work of a miner or a blacksmitli. It would be absurd to attempt to reduce to any common standard of value tlie different kinds and the different capacities of human industry. One thought given forth by a philosopher might enrich a nation, while the toils and lives of 10,000 other men might only provide the means for their own subsistence. It is not improper therefore to characterise the theory that labour is in itself the measure of value as entirely incorrect. It is equally irrational if we consider the value or utility of the objects upon which labour is bestowed or which it produces. One man will toil for years for the completion of some petty task, the draining and improvement of a few acres of land, or the erection of a cottage home. Another by an hour's work may unearth a welcome nugget worth £10,000 or a diamond worth a quarter of a miUion. Wages, fees, commissions, salaries, emoluments of every sort, earned by the labour of men, are nearly always, in every land, in every age, in every pursuit, unequal in value ; so are the objects upon which in- dustry may be exerted, in their natures, utilities, and intrinsic worth. To expect that a correct measure of value can be founded upon such false premises, and maintained by such illogical reasonings, is to expect an impossibility. A fair consideration of the argument at once demon- strates the fallacy of the laboiir standard of value. THE LABOUE QUESTION SOLVED. 79 Theories upon whicL. numerous volumes and treatises liave been written pass completely out of the field of argument, when it is once admitted that Adam Smith was wrong in his statement that labour is' the sole source of wealth. All human exertion presupposes a motive. In endeavouring therefore to extend the boundaries of investigation into the science of wealth, Adam Smith felt himself compelled to ascribe a motive for the actions of men in this* direction. To what impulse or spring of action were the toils and anxieties of men to be ascribed in the pursuit of riches. In the world of morals he had advanced the supposition that men^s actions were prompted by sympathy. To what all-powerful principle were the actions of men due in the acquisition of material good? It is impossible to discover the parity of reasoning between the two results of Smith's logic. Why did he allege sympathy as the proper governing motive in morals and selfishness in political economy ? It certainly is not easy to acquiesce in the assertion that sympathy always governs men in the moral world. That it ought to do so is certain ; that it does is by no means beyond dispute. In the struggle for riches selfishness as a matter of fact does generally prevail, but it is equally certain that it ought not to do so. And this covetousness leads to every species of wrong-doing. The love of money is, indeed, a root of all evil. It is not necessary to a happy life that 80 FEOM POVERTY TO PLEMT? ; OE, man should become wealthy. The necessaries of life and many of its most valuable enjoyments can be obtained without a great estate or the possession of a fortune. And it is too often found that they who make haste to be rich, who spend their lives in amassing wealth, are but piercing themselves through with many sorrows, and neglecting those fountains of pleasure which offer their streams freely to the con- tented mind. History is full of instances which illustrate both phases of this argument. Because selfishness and covetousness are, de facto, the ruling motives in the pursuit of temporal pos- sessions, it does not follow that they are right- Were we to adopt that motto, — " Whatever is is right,'" we should at once destroy all hope of improvement in the world. The aim of those who desire the welfare of their fellows, and the world's progression in knowledge, virtue, and happi- ness, must be to alter and amend all that is wrong, all that works evil amongst men. Especially is this the case regarding those matters which afiect the happiness or suffering of mankind. The onward march of man towards a perfect state is but a record of evils cured and reforms efi'ected. In politics, in religion, in every part and path of life reform and improvement are at once the index and accompani- ment of that progress which the human family is ever making towards the final goal and destiny of civilisa- tion. Considered in this light, it is as much our duty THE LABOUR QUESTION SOLVED. 81 to destroy the selfish principles of political economy and to replace them by other and more lofty sources of action, as it is to strive for any other reform.. Ajid it is as much more important than other matters, as the necessaries of life are more needful to men than other things. s B M ^ E^ m ^'^^^K^ReS ^^^^^ ^^ CHAPTER IV. Summary of orthodox economic teaching — J. S. Mill — Mistaken belief as to scope of Smith's work — Malthus on population — Errors of Malthus — Eicardo's laws of rent and wages — Laisser faire — Rise of Free Trade — Its consequences — Proba,- ble disastrous results of unrestricted competition — Decrease of agricultural population in Great Britain — Cheapness of goods useless without means to purchase — Ireland in 1848 — Lords' Report on sweating. OLITICAL Economy, as now understood, embraces a very wide variety of sub- jects. It is not, indeed, so discursive as when Adam Smith first attempted to define it, but it still wanders far a-field. And there are but few writers who attempt to confine their remarks to its strict consideration. Taking Mr. John Stuart Mill as a fair exponent of modern thought, we find in his " Political Economy," people's edition, 1865, 591 closely-printed pages of small type, divided into five books, dealing respectively with the following matters : — (1.) Production. (2.) Distribution. (3.) Exchange. THE LABOUK QUESTION SOLVED. 83 (4.) Influence of the Progress of Society on Produc- tion and Distribution ; and (5.) On the Influence of Government. The writer^ in the preface to his book, states : — " The ' Wealth of Nations ' is in many parts obsolete, and in all imperfect. Political economy, properly so •called, has grown up almost from infancy since the time of Adam Smith ; and the philosophy of society, from which, practically, that eminent thinker never separated his more peculiar theme, though still in a very early stage of its progress, has advanced many steps beyond the point at which he left it." In the five books of which Mr. Mill's treatise is comprised, the first, upon Production contains thirteen chapters dealing with labour and capital, and a few on the law of the increased production of land. The fifth chapter, which speaks of the fundamental rules respecting capital, contains four propositions as follow : — (1.) That industry is limited by capital; (2.) That capital is the result of saving; (3.) That capital is consumed ; and (4.) That capital is continually reproduced. The fourth chapter defines the nature of capital itself. The eighth contains a striking and convincing series of proofs of the superior advantages of the combination and co-operation of labour ; and the ninth practically demonstrates the superior advantages of production upon a large scale. 84 FEOM POVERTY TO PLENTY; OE, The second book, which treats of Distribution, covers a very wide field of discussion, and divides the distribution of wealth into rent, wages, and profits. The third book treats of Exchange, and is mainly- taken up with the questions of value and of money as a circulating medium, including credit and paper currency. The fourth book, which contains the thoughts of the writer on the Influence of the Progress of Society on Production and Distribution, consists of only seven chapters, of which the last, and incomparably the most important, is devoted to the probable future, or, as it is strangely put, "the probable futurity," of the work- ing classes. This chapter contains in itself half the fourth book, and deals with the question of co-operation in England and Prance at the date at which this edition was pub- lished, 1865. Mr. Mill makes no secret of his belief that the practice of co-operation is destined to effect a social revolution in the condition of the labouring classes at no very distant date : an opinion which is shared by all recent writers except Mr. Henry George. The last book, on the Influence of Government, con- tains many wise and far-seeing remarks upon those functions of government which affect the social economy of the nation ; but it contains, as do many other treatises, a great number of arguments and a considerable mass of writing upon subjects which THE LABOUB QUESTION SOLVED. 85 have, if any, merely a remote connexion with the main subject. Before examining the maxims and principles of the orthodox system, and the results arising from their practice, we may consider the statement made by Mr. Mill as to the obsolete nature and general imperfections of the " Wealth of Nations." It is the fashion amongst more recent writers some- what to depreciate the results of Adam Smith's labour, and to assert that they are giving to the world a more extended and accurate knowledge of true principles. I do not hesitate to express my opinion that instead of advancing upon the true lines of this science since the days of Adam Smith, subsequent writers have abandoned some of the most valuable propositions asserted by that great thinker, and put forward others much less consistent with truth and logic. Nor is it in this direction only that they have deteriorated. Nearly all the new principles and rules laid down by the more modern teachers are either useless for the solution of the practical difficulties which present themselves in life, or they are untrue as well as un- philosophic, and so selfish and oppressive as to be abhorrent to every sentiment of humanity. Besides departing in principle, the successors of Adam Smith have spent a very considerable portion of their time and ingenuity in attempting to define the meaning of those terms which are necessary to the proper discussion of their theme. In spite of, 86 FEOM POVEETT TO PLENTY; OE, or perhaps in consequence of, their strenuous efforts in this direction^ confusion has grown worse con- founded. In lieu of the plain and easily-compre- hended terms which the majority of other sciences enjoy, all the commonest terms of political economy have different meanings in the writings of different standard authors. The interpretation of the whole technical terminology of the science is in a hopeless state of disorder, — abstraction after abstraction, — refinement after refinement, — contradiction upon con- tradiction, — leave the student in a state of uncertainty absolutely fatal to the attainment of any true know- ledge upon the question. -Sismondi, one of the most just and upright thinkers of modern days, after reviewing with intense feeling the terrible contrasts of London and English life, thus speaks : " At a period when sufEering humanity has the utmost need that the science which is the theory of the well-being of all should draw near to common intellects and speak a popular language, political economy is lost in abstractions and enveloped in calculations more and more difficult to follow." This is nowhere more clearly demonstrated than in the latest work of one of the latest authors, Mr. Stanley Jevons. The almost incredible anarchy which exists in and demoralises the definitions of terms in the treatises of the more modern teachers, as well as the de- teriorated character of the principles propounded in THE LABOUR QUESTION" SOLVED. 87 oppositioii to or in amendment of those of their great leader, may be mainly ascribed to the idea entertained by nearly all writers that Adam Smith's work com- prehended the whole structure of a complete system, and that there remained for them nothing to do but to define more clearly the meaning of the necessary terms, to amplify details, and to supply those minor principles and laws which would render complete for all practical purposes the theory which the great Scotchman had propounded. There are, however, some remarkable exceptions to the current belief as to the scope of Smith's teaching and the extent of his pretensions. For instance. Professor Sidgwick expresses his opinion that upon several subjects Smith's followers have laid claim to a generalised system which Smith not only never asserted, but, on the contrary, avoided.* Of the same opinion is the great Italian economist Cossa,t — " By the work of Adam Smith political economy lost the exclusive character which the physiocrats had given to it, and was freed from the disguise of the sublime language which they affected. It gained a definite position among the social sciences, and acquired a definite object. It assumed a special function and adopted a convenient method. It laid the stones of a great edifice of social progress. * Sidgwick, " Scope and Method of Economical Science," 1B85. t "Guide to the Study of Political Economy," 1880, 2nd edition, p. 168. OO FEOM POVERTY TO PLENTY J OE, But it must not be thought that the new science was perfectly constituted by Adam Smith. The wealth of nations did not comprehend the whole body of economic doctrines. If it were so. Smith would have done for economics what no single man has ever been able to do for any science, physical or moral." Most men, however, seem to have thought that Smith had drafted a system complete in all its points, whereas he had but summarised the two branches of the science taught respectively in the mercantile and physiocratic schools, and had amplified and systematised them. But far ahead as he was of the ideas and knowledge of his time, he had, of course, none of that knowledge which has come into existence since. His ideas, therefore, upon production and exchange were necessarily less com- prehensive than the ideas of to-day, as ours must be necessarily less than those which our great- grandchildren will possess. As for distribntion, the third and perhaps the most important branch of political economy, neither Adam Smith nor any of his successors knew anything of its real nature, its real subjects, or the laws which govern it. Be- lieving, therefore, that they were dealing with a complete science, those who followed in the footsteps of the Glasgow Professor had to square the facts with their system instead of making a system to square with, account for, and amend the facts. As we consider the laws promulgated and the diverse THE LABOUR QUESTION SOLVED. 89 meanings of terms employed by different writers, we shall see how these causes have operated, and we shall not only cease to be astonished at the" terrible confusion which rules with a splendid liber- ality in the theories of orthodox political economy ; but we shall cease to wonder at the distressing contrasts visible in social life and the apparently inevitable unequal distribution of wealth. The immediate successor to Adam Smith was the Rev. T. E.. Malthus, a clergyman of the Church of England. His celebrated essay on the principles of population, published as a protest against Paine's '' Rights of Man," and Godwin's pamphlets, pro- pounded a theory upon the increase of mankind, diametrically opposed to the commandment of God, and the laws of nature. Incredible as it may seem, this writer, who has been by many people praised in terms that would have been flattering to Aristotle or Bacon, taught that one of the operations of nature was to restrict the increase of population, and that she appointed diseases of various sorts for that purpose. He thus writes : — " If, however, we all marry at this age, and still continue our exertions to impede the operations of nature, we may rest assured that all our efforts will be vain. Nature will not, nor cannot, be defeated in her purposes. The necessary mortality must come in some form or other, and the extirpation of one disease will only be the signal for the birth of G "90 from: povbety to plenty; or, another, perhaps more fatal."* And so resolute, according to Mr. Malthus, was nature in this matter, / that she would not fail in her determination, nor be defeated by the efforts of sanitary science. "The small-pox is certainly one of the channels, and a very broad one, which nature has opened for the last thousand years to keep down population to the level of the means of subsistence, but had this been closed others would have been found. For my own part, I feel not the slightest doubt that if the introduction of the cow-pox should extirpate the small-pox, and yet the number of marriages continue the same, we shall find a very perceptible difference in the increased mortality of some other disease." It is a somewhat remarkable fact that all those who desire to support any abuse or tyranny which has become partially sanctioned by custom, appeal to nature as the author. Thus Aristotle says in regard to slavery : " Let us then conclude from these principles that nature creates some men for liberty, and others for slavery, that it is needful and just that the slave should obey." Mr. Malthus continues, when ■criticising the rights of man as asserted by Thomas Paine, — " What those rights are, it is not my business at present to explain, but there is one right which man has generally been thought to possess, which I am confident he neither does nor can possess j a right * " Principles of Population," 7th edition, p. 42. THE LABOUR QUESTION SOLVED. 91 to subsistence, when his labour will not fairly purchase it."* This would condemn to death, by starvation and neglect, all orphan children, persons out of work, the sick, and the aged. Mr. Malthus was in favour of prohibitive laws being passed to prevent the increase of the relief to the poor. "As a previous step to any even considerable alteration in the present system, which would contract or stop the increase of the relief to be given, it appears to me that we are bound in justice and honour formally to disclaim the right of the poor to support. To this eixd I should propose a regulation to be made declaring that no children from any marriage taking place after the expiration of a year from the date of the law, and no illegitimate child born two years from the same date, should ever be entitled to parish assistance."t As to the fate of those who should disobey such a law, he says : — " All parish assistance should be denied him, and he should be left to the uncertain support of private charity. He should be taught to know that the laws of nature, which are the laws of God, have doomed him and his family to suffer for disobeying their repeated admonitions that he had no claim of right on society for the smallest portion of food beyond that which his labour would fairly purchase."t * Ibid., -p. 421. i Ibid., p. 430. t JTSid, p. 430. 2g 92 FEOM POVERTY TO PLENTY; OR, Still more fierce were some of his utterances. Amongst them were several passages suppressed in later editions. One of these I give : — " A man who is born into the world already fuU^ if his family have no means to support him, or if society has no need of his labour, has not the least right to claim any portion of food whatever, and he is really redundant on the earth. At the great banquet of nature, there is no place for him. Nature commands him to go away, and she delays not to put that order into execution." We may rejoice that the dreadful opinions of Malthus were not the sentiments of all the thinkers of that time. In the same year in which " The Enquiry into the Causes of the "Wealth of Nations," was published the great Turgot, in the preamble to the Edict of February, 1776, for the repeal of the Cor- porations in France, an edict which was called the Charter of Freedom for the "Working Classes, uttered these noble words : — " God, by giving man wants, by rendering the resource of labour necessary to him, has made the right to work the property of every man, and that property is the first, and most sacred, the most imperscriptible of all." Adam Smith knew and respected the leaders of the Physiocratic School, which included the great French minister, and the principles enunciated by him were entirely in accordance with the words bj which the THE LABOUR QUESTION SOLTED. 93 Edict of 1776 was prefaced. The difference between Adam Smith and Malthus is terrible, yet Mr. Buckle in his " History of Civilisation/' speaks of Malthus as the crowning genius apiong the political economists of that day. He seems to think that Adam Smith's greatest merit was that he introduced the other. " If it had not been for Adam Smith," says Mr. Buckle, "the world would have had no Malthus." To the dreadful imprecations uttered by Malthus, well might Grodwin reply, — " Woe to the country in which a man of this class (the people) cannot marry without the prospect of forfeiting his erect and independent condition ! Woe to the country in which, when unforeseen adversity falls upon this man, he shall be told he has no claim of right to be supported, and led in safety through his diflSculties ! We may be sure there is something diseased and perilous in the state of that community where such a man shall not have a reasonable and just prospect of supporting a family by the labour of his hands, and the exertion of his industry, though he begins the world with nothing."* It is diflBcult to over-estimate the strength and tenacity of the hold which the teaching of Malthus has obtained upon the educated mind of this century. Taking up by chance a pamphlet upon " Elementary Politics," published in Londonin 1886, by Henry Eroude and written by Mr. Thomas Ealeigh, M.A., Fellow * Godwin's answer to Malthus. " Inquiries into Population," took vi., chapter 6. 94 FEOM POVERTY TO PLENTY; OE, of All Souls College^ Oxford, I was struck with the strange commingling of the consciousness exhibited of the terrible condition to which the present political economy has reduced the nation, and the extreme ad- hesion given to the theories and general principles which have produced that condition. I take this bookas an expression of the popular opinion held by men of cultured minds, who are privileged publicly to express those opinions to the world, espe- cially from the great seats of learning in England. And in this case I do so without fear, as I find in this pamphlet of 160 pages a very considerable amount of sound learning, of just criticism, of terse writing, and of clear and vigorous thought, giving perhaps the best view, in so short a space, yet written upon the subject which it professes to elucidate. In the 10th, 11th, and 12th chapters of his little work, and in the compass of less than forty pages, Mr. Raleigh gives a tolerably clear statement of the ordinary faith and views of political economists. In the 12th chapter he speaks of the distribution of wealth. " We produce," he says, " a large aggregate of wealth, but we still have to complain of the evils caused by poverty and luxury. Before we speculate as to the causes of this state of things, we must lay down certain general principles which form the basis of all sound political economy. The Law of Population. — Man is an animal, and. THE LABOUB QUESTION SOLVED. 95 like other animals, he has a tendency to multiply- beyond his means of subsistence. Unlike other ani- mals, he can emancipate himself from this tendency by exercising foresight and self-control, not to marry and produce children until he sees his way to pro- viding for them. Unfortunately, foresight and self- control are not universal, and people who are depressed by poverty are specially tempted to be reckless in the matter of marriage and parentage. This is one reason why there are so many poor, even in wealthy countries. The foregoing statement contains the gist of the doctrine of Malthus. It is a statement so simple and so true that, in order to argue against it, you must begin by missing the point, and there are able writers who miss the point in various ways Some people tell us that when God sends mouths he sends food to fill them, or would send it if it were not intercepted by landlords, employers, and bad governments. The stern fact is, that God sends millions of mouths for which no food is provided ; this is true throughout the whole animal kingdom, and it is true of man qua animal. Why the fact should be so we cannot tell ; it is part of the mystery of pain and evil, which bafl3es human understanding. But the fact itself is clear enough for all practical purposes." I have made these quotations because they summarise the modem belief in the Malthusian doctrine. Avery 96 FEOM POVEETY TO PLENTY; OEj short examination will show how illogical and childish such reasoning is, and how untrue are the premises upon which it is built. It is asserted that man, like other animals, has a tendency to multiply beyond his means of subsistence. On the contrary, man is utterly unlike all other animals as regards the production of the means of subsistence. In the sweat of his brow he must eat bread. Food, clothing, shelter, are the results of labour co-operating with nature. God does indeed through nature, by the labours of man, indirectly provide food for all living animals, or they must die. But when or where is it that God directly provides food for men. Once, indeed, in history we are told that Jehovah directly provided food during forty years for over two millions of a mixed multitude. Throughout that long period there was enough for all. No one wanted, no mouths in the great host of the children of Israel were unpro- vided for. If the Lord were again to command the nations to look directly to Him for food, there would be sufficient and to spare. And in the miracles of Christ the few loaves and fishes were more than enough for the thousands who ate of them. But man, unlike the beasts, must provide his own food. His hands must till the earth, and reap the grain. His skill and courage must win from the surface of the earth, from the mine, and from the sea, those inuumerable products which sustain life and afford enjoyment. THE LABOUR QUESTION SOLVED. 97 Througli ten thousand channels of production, manu- facture, and commerce man produces, consumes, and enjoys the varied objects drawn by his godlike powers and energies from the exhaustless storehouse of nature. The philosophy which in this matter de- grades man to the same level as the beasts is false and godless. Even towards other living things, man made in the image of his Maker, has to take the place of God. Man has to clear the forest, plough the fields, sow the grass, tend the flocks and herds, carry from land to land the different species of animals, as well as plants, and provide food, shelter, safety, and care for all. How long would it be, were man removed from the earth, before the fair face of nature became desolate, and the great majority of animal creation die. To say as Mr. Raleigh, speaking in the name of the current political economy, says, " The stern fact is, that God sends millions of mouths for which no food is provided " is in one sense true, because God Himself, with all reverence be it spoken, provides directly for no one mouth. Such an occur- rence has always been accounted a miracle, and although there exists no reason against the perform- ance of miracles, yet we have to act as governed by those ordinary natural laws by which the world and its people are controlled. To say that, in the ordinary way in which God provides for men, — that is, by afford- ing the means and capabilities in nature from which 98 PROM POVEETT TO PLENTY; OR, food may be obtained, — " God sends millions of mouths for which no food is provided/' is a blasphemous untruth, as well as a ridiculous and contemptible error. So far from there being any tendency in man to multiply beyond his means of subsistence, the contrary is true. The greater the multiplication the easier becomes the attainment of the means of subsistence. Ten men can more easily produce the necessaries of life than one man. A hundred can provide far greater comforts for each other than ten. A thousand will still swell the aggregate of comfort, while a m.illion will carry on all occupations necessary to ensure com- fort to all, with comparative ease and economy. It is indeed true that if the great bulk of wealth created and produced is by a selfish and vicious system taken from the many and given to the few, then the means of subsistence of the many become straitened. That,. however, is the result of a faulty human system and of gross ignorance, and not the operation of a natural law. It can be easily shown that the means of sub- sistence, comfort, and even luxury, not only could be- but are produced in greater quantity than they are consumed. Nor can it be doubted that with a proper system of distribution, no home, no per- son in the empire or the world would be suffering from want. Before Malthus, Sir James Stewart, and Mr. Town- send, in his "Dissertation on the Poor Laws, 1786," had already pointed out that the population of THE LABOTJE QUESTION SOLVED. 99 every country has a tendency not only to rise to the level o£ the means of subsistence afforded by that country^ but to exceed them. But history is full of such proofs, — ^nearly every migration of ancient tribes aflfords an example. It was not necessary to call in aid of a selfish economy the truth of the increase o men, and then to distort that truth and turn it to a falsehood. Land that will yield food for ten people will not support a hundred. An estate of ten thou- sand acres may support five thousand persons, but in no way can yield food for fifty thousand. But if there be boundless lands to till, if there be boundless com- merce to be created, and boundless wealth to be produced, how can it be true to say that " population outruns subsistence V Prom no point of view is the whole theory of Mr. Malthus correct. It is partially true, but a half-truth is generally the source of error. Population in a time of peace and sufficient food naturally increases. But the ratio of increase is always irregular. In times of war, pestilence, and famine, population decreases, or, at best, increases at a much lower rate. No people has ever increased at the same rate for any very long time, while the human family, taken as a whole, does not increase in geometrical ratio during any regular periods. The second part of Mr. Malthus's theory, tried by the same standard as the first, is altogether erroneous. For the means of subsistence generally do not increase in the same way as population 100 FEOM POVERTY TO PLENTY; OE, increases. Cattle, sheep, and all live, stock used for food do, indeed, increase, but they increase geo- metrically; but all other portions of man's means of subsistence are simply the results of human labour applied to natural agents, and they do not increase spontaneously any more than ships or houses. These can only become more numerous as the three factors of production are brought into contact with each other. Beyond a certain limit of productiveness, the soil and natural forces of any country vfill increase no more. In such a country population will still increase, but the means of subsistence will remain at their highest level, or recede. On the other hand, food and other necessaries may be drawn from distant regions and from countries far removed. England at the present time draws subsistence for the bulk of her people from abroad. And if the population of the United Kingdom were quadrupled, she could still feed and clothe her crowded multitudes from her colonics. The means of subsistence are produced from natural forces by the labour of man. If the number of labourers be increased, then, if there be sufficient natural forces to operate upon, more means of sub- sistence can be produced. In these days a very small proportion of the labour power of a civilised community is sufficient to provide amply for the wants of all. Were all to work, and work in accordance with THE LABOUR QUESTION SOLVED. 101 modern skillj an enormous and superabundant aggre- gate of production would result. The greater the increase of the labouring popu- lation when land and the forces of nature can be laid under tributej the more abundant will be the result of labour, and the greater the mass of surplus and accumulated wealth. Population, therefore, in the sense used by Mr. Malthus and the economists does not outrun sub- sistence, nor is it possible that it can so long as available land in any part of the earth is obtainable, i Mr. Mill, following and apologising for Mr. Malthus, while asserting that labour, or rather the human family, is capable of almost indefinite increase, and that capital is also, under certain conditions, practi- cally unlimited, lays down the theory that land, being limited in extent and accessibility, the increase of production is thus restricted. Therefore, he says, the expansion of population must be checked lest want, and even famine, overtake the growing multi- tude, there being no available natural agents from which labour may produce food. To this theory there are two practical answers. If it be intended to ac- count by this for the pauperism and want now exist- ing in many countries, it is suflBcient to answer that in the same countries and in others similarly circum- stanced there have been want and misery in every period. The existence of want and misery does not now depend, nor has it in the past depended, upon 102 FROM POTEETT TO PLENIT ; OE, the density of population in any given state. The most sparsoly-peoplecl portions of the kingdom are more dominated by want and famine than the city of London itself. The most thickly-populated countries of Europe are certainly not pressing upon the means of subsistence more heavily than those most thinly populated; and so it has been always. Again, in every age the natural products of populous countries have been assisted by exchange and commerce. In these days science has practically turned seas into rivers and oceans into lakes. The cost of carriage from the most distant parts of the world to the great capitals of Europe does not equal that which would have been incurred two hundred years ago in transmitting goods from Devonshire to London, while the safety and efficiency of such transport are greatly increased. Under these circumstances, it is folly to assert that the mere increase of population in any country with a great seaboard can of itself cause an undue pressure upon producing power. The population of England has increased nearly threefold during the last century, and were it to increase during the next hundred years to ten times its present number, its people could still be easily supported by supplies drawn from a portion of the colonial empire. With perpetually-increasing powers of transmission, with a perennial flow of in- ventive genius, and a constant growth in knowledge, it is impossible to limit the powers of production available for the sapporb of increasing numbers, save THE LABOUR QUESTION SOLVED. 103 by the ultimate capacity of tlie wliole earth. To a people possessing great territories and enjoying a high state of civilisation, no prudential considerations such as those which form the groundwork of the Malthusian theory, and which have been adopted by so many political economists, need for a moment be considered. Eather should the old feelings entertained in times of war be revived, and the increase of population be en- couraged. With a people growing at once in numbers, in intelligence, and in prosperity, with capital drawing to itself continual accretions from extending com- merce, settlement, and production, great territories of waste lands inviting the dominion of man, the nation may, with proper economic laws, reasonably hope to rise to a condition of prosperity and happiness never yet attained. Many writers of considerable repute have shown the fallacy of the Malthusian theory. So far from population outrunning subsistence, it is the con- tinuous wail of modern commerce that there is a glut of production. In the presence of the great untilled territories of the empire, it is start- ling to hear men of great reputations still in- sisting upon the truth of a theory as hollow as it is vicious, as un-Christian as it is absurd. It is not nature that denies privileges to the multitudes born into the world. It is not nature that refuses to spread covers at her feast for them. It is not nature that pinches the cheek with hunger and dims the eye. with 104 EKOM POTERTY TO PLENTY ; OB, tearSj or that fills the graveyards of our great cities with untimely death. Nature, God's handmaiden, offers her boundless treasures with profuse and loving hands. The earth, the sea, the air, her granaries and storehouses are freely open to the children of men ; she places no locks, no bars, no bolts upon her treasures. The earth, whence comes the wine which gladdens the heart of man, and the bread which strengthens him, providing food, clothing, and happiness for countless multitudes, has been given by nature's Master to His creatures. And until the waste and desolate places of the earth shall have been filled with the habitations of men, until the untrodden wastes of the British colonial empire shall have yielded their fullest harvests to industry, until there shall be no more wilds to conquer, no more lands to till in the interests of humanity, I say that it is treason to the Crown and blasphemy against Heaven to promul- gate a law which shall restrict the national increase of our people on a plea so false and foolish. I care not how great the names, how wide the influence, how lofty the position of those who endorse the principles of orthodox political economy : I am content humbly to follow Him who, in the dawn of the history of man, when he endowed the human race with the earth as an estate, bade His creatures increase and multiply, to be fruitful, and replenish the earth and subdue it. The glory of England is in the number of her people scattered in great and free communities THE LABOUR QUESTION SOLVED. 105 through her boundless realm. The increase of her children, the growth of her colonies, the spreading of her commerce, the extension of her principles of civil and religious liberty, the continuance of that freedom for which her patriots fought and her martyrs bled, — this is her highest destiny, and he is a traitor to his race and to humanity who, by argument or by legislation, shall attempt to stay the onward course of English power and English progress. Southey's noble words should ever be remembered : — " Train up thy children, England, In the ways of righteousness, And feed them with the bread of wholesome doctrine. Where hast thou mines, but in their industry ? Thy bulwarks where, but in their breasts ? Thy might, but in their arms ? Shall not their numbers, therefore, be thy wealth, Thy strength, thy power, thy safety, and thy pride ? Oh ! grief, then, grief and shame, If in this flourishing land there should be dwelling. Where the new-born babe doth bring unto its parent's soul No joy ! where squalid poverty receives it at the birth. And on her wither'd knees Gives it the scanty bread of discontent." These are the sentiments which fill the hearts of those who love their country and their race. The miserable forebodings of pamphleteers, writing in the interests of selfishness, can never form a plan for the extension of a great empire or the growth of a free people. The same selfish spirit which prompted the so-called political economy of the eighteenth century, H 106 PEOM POTEKTT TO PLENTY ; OE, prompted also, in the interests of property, that long series of laws, more dreadful than the laws of Draco, which sent to prison, to exile, and to the gallows hundreds of thousands of the poor and ignorant classes in Great Britain. The maxim is erroneous. It is an error springing from selfishness, which, reduced to a science, would maintain the labouring classes in sufficient numbers to perform the work required by capitalist employers aud no more. Following Malthus in order of time, Ricardo at- tempted to lay down with precision the laws which governed wages and rent. Ricardo's well-known law of wages illustrates with remarkable force the altera- tion and difference, — certainly not improvement, — in the theory of the law of remuneration of labour asserted by Adam Smith and his successors. Adam Smith says : " The produce of labour consti- tutes the natural recompense or wages of labour." Ricardo says : " The natural price of labour is that price which is necessary to enable the labourers one with another to subsist and to perpetuate their race without either increase or diminution. The natural price of labour then depends on the price of the goods, necessaries, and conveniences required for the support of the labourer and his family." This is a startling and profound change. From the evidently just principle laid down by the founder of political economy one of his earliest successors so directly departs as to degrade the whole industrial class into a condition of slavery. THE LABOUR QUESTION SOLVED. 107 inasmucli as the total labour of their lives is to be given for the mere means of subsistence. Mr. Ricardo goes on to say that there is another price for labour which he calls the market price, as distinguished from the "natural price.^'* " The market price of labour is the price which is really paid for it from the natural operation of the proportion of the supply to the demand ; labour is dear when it is scarce and cheap when it is plentiful." " When the market price of labour is below the natural price the condition of the labourers is most wretched ; then poverty deprives them of those com- forts which custom renders absolute necessaries. It is only after their privations have reduced their num- bers or the demand for labour has increased that the market price of labour will rise to its natural price and that the labourer will have the moderate comforts which the natural rate of wages will afford.'" In his writings Mr. Ricardo lays down with severe decision those laws which, according to him regulate value, rent, wages, and profits. I do not hesitate to say that upon all^these subjects his principles are either fallacious, useless, or unnatural. His theory of value is in the main unsound ; his theory of wages reduces free labour to worse than slavery ; his theory of profits is untrue, while all are equally unphilosophical. His dis- sertations upon rent are to real political economy of no value, because under a proper system no rent would * Eicardo,^3rd edition, 1821, p. 51. H 2 108 FROM POVERTY TO PLENTY; OK, be paid, as organised bodies of industrious workers in co-partnership with owners of capital would own the land they tilled, the mills and mines in which they worked, the ships and warehouses in which commerce was carried on, and all other means of production and exchange. The favourite maxim of this philosophy is "Laissez /aire," meaning, as now interpreted by politicians and economists, that things are to be left alone ; that all questions between employer and employed, the capitalists and the labourer, the rich and the poor, the powerful and the weak, are to be left to settle them- selves ; in other words, that the weak are to be abandoned altogether to the tender mercies of the strong. " Laissez faire," " Laissez aller" were not invented by Quesnay. Colbert consulted a merchant named Legendre on the best means of protecting commerce, and Legendre used these words, since so celebrated. But they were not at first intended to mean anything more than that all which was not injurious to morals, nor liberty, nor property, nor personal security should be left alone. They were only a protest against the restraints which hampered the free development of labour. And the same Quesnay used them, who succeeded in having printed at Versailles by the hand of Louis XV. himself the great maxim : " Pauvres paysans, pauvre royaume ; pauvre royaume, pauvre souverain." . Laissez faire as now used, contains the most THE LABOUE QUESTION SOLVED. 109 pernicious of all doctrines : in Government it would lead to rebellion and anarchy ; in religion it would produce atheism; in social life it would produce barbarism ; in morals, Sodom and Gomorrah ; in science, confusion ; in letters, ignorance ; in the social condition of humanity a condition in no way different from that of the beasts of the field. Under its rule the Garden of Eden became a wilderness. Beneath its baleful guidance in all paths of life, the voices of the patriot, the poet, the teacher, the prophet, and the reformer would be silenced, and hope would be banished from the earth. In the course of time, requiring indeed a longer period for its development than other principles, the doctrine of free trade sprang up, blossomed, and bore fruit. This doctrine teaches that each portion of the earth should enjoy free and untrammelled commercial intercourse with the rest. That the peculiar products of every region should be made freely and economi- cally interchangeable for the products of all others. That the advantages of climate, of soil, of position possessed by different parts of the earth should thus become mutually beneficial, that every land and every race should, by exchange of commodities, be mutually benefited and enriched. Nor is it without reason that such a theme should be attractive; for free trade under a condition of political and social economy, by which all who aided in creating wealth and improving commerce should share in the wealth 110 FEOM POVERTY TO PLENTY; OE, SO created/ and the commerce so extended might be and indeed may yet become, the means of adding to the safety, the comfort, and the advancement of the human family. But free trade, springing from the root of selfishness, trained by the hand of unrestricted competition, and its fruits gathered for the benefi.t of capital, has produced, side by side with cheapened productions and vastly swollen national wealth, in- creasing misery and suffering to the great mass of the working classes. When England started upon the policy of free trade, the minds of the great leaders of that movement were filled with the anticipation of the blessings which would spring from its adoption, not only to foreign countries with whom Great Britain traded, but especially to their own race within the four seas of Britain. At that time, as at present, the bulk of the commerce of the world was carried in English ships. The Colonial Empire of Britain was then beginning to show the promise of its present large proportions. The manufacturing skill and in- dustry of the British Empire stood alone and un- rivalled in the markets of the world. In the East, in the West, in the North, and in the South, from the Pillars of Hercules to the mouth of the Amoor, from Hong- Kong to the golden gates of San Francisco, from Eio de Janeiro to Sydney, multitudes of people were prepared to purchase, in exchange for the varied pro- ducts of all climates and regions of the world, those wares which the great manufacturing centres of Great THE LABOUR QUESTION SOLVED. Ill Britain could provide in unparalleled excellence, un- bounded profusion, and at the smallest price. Thus, with the world for its market and with only incon- siderable competition for the produce of its looms and furnaces, English commerce spread suddenly in a thousand streams, flowing far and wide to the nearest as well as the most distant corners of the earth. Not only the commerce, but the manufactures of the nation grew with wonderful rapidity. Employment was offered in every manufacturing town throughout the country to an extent never before known, and at wages never before heard of. A large portion of the agricultural population, especially of the hardier and more adventurous sort, flocked into the great towns to participate in the benefits resulting from constant labour and high wages. And in addition to the attractions thus offered, there has been, especially since the repeal of the Corn Laws, so serious a diminution of the number of persons employed in agriculture, owing to the free importation of wheat and other food stuffs, that great hosts have been compelled to find work in manufacturing occupations. In 1841 there were in the United Kingdom 3,820,000 people en- gaged in agriculture, while in 1886 there were but 2,420,000.* Thus in forty-five years, although the population of the country had increased by upwards of ten millions, the numbers of those employed in tilling British soil had decreased by no less a mass * Mulhall, " Fifty Years of National Progress." 1887. 112 FROM POVEETY TO PLENTY; OR, than one million four hundred thousand. In the same period the yearly value of the crops had sunk from £74,300,000 to £51,700,000,— a decrease of £22,600,000. Wealth increased and multiplied in a manner and at a rate hitherto unrecorded in history ; and in addi- tion to the increase in the amount of wages, the labouring classes participated in still further advan- tages, because the effect of free trade and unrestricted competition was to increase the abundance and de- crease the price of most of those articles necessary not only to sustain life, but to minister to moderate enjoy- ment. Meanwhile the excess of wealth promoted a very great expenditure upon internal improvements, such as railways and buildings, which again afforded employment at high wages to other portions of the community. The spirit of enterprise thus roused ani- mated many classes of the people with a desire for yet further developments, and the discoveries of gold in America and Australasia, united to the wonderful inducements and attractions held out to colonists and settlers throughout America as well as the outlying dependencies of the empire, drew away from Great Britain millions of the more resolute and enterprising of her children. These followed across the seas those bands of adventurous spirits who, with heroic daring, had gone forth to people the solitudes of the earth, and to lay, in waste and savage lands, the foundations of great empires. For a long period all these causes THE LABOOE QUESTION SOLVED. 113 combined to raise and maintain a season of prosperity. But the minds of men like Bright and Cobden, who foresaw the brilliant advantages likely to accrue from the policy of free trade, did not pierce far enough into the future, nor did they anticipate three important results which are now pressing heavily upon tbe pre- sent and threatening great disasters in the future. The first of these is found in the fact that with all the accumulation of wealth which has accompanied, and to some extent arisen from, the free-trade policy, the only class which has permanently benefited, materially speaking, are the propertied and speculating classes. The great mass of the people, the multitudes who have toiled on sea and land to produce these treasures, are practically no better off than before ; indeed, they are yet likely to be in a much worse condition than they would have occupied had things gone on in the old grooves down which they ran during the reigns of the Georges. For the second result which was not fore- seen is now exerting a powerful influence upon Eng- lish manufacture and English commerce. The spirit of all political and social economy being essentially selfish, other nations, while taking advantage of British ports and British markets being open for their manufactures, have closed their own markets by almost prohibitory duties against British goods ; and having learned from us that skill which is necessary to enable them to become producers, and possess- ing the advantage of cheap and abundant labour, 114 i'EOM POVEETY TO PLBNTX ; OR, are able not only to supply themselves with the articles they require, which once they purchased from us, but to send the surplus of their produce and their manufactures into Great Britain and to undersell us in our own streets. Beyond this there is a far greater danger threatening the British indus- trial classes from this free trade, unrestricted com- petition, and reign of capital. And this seems destined to effect a complete change in the position of the Eng- lish working classes, and either force into existence a new system of political economy, a great migration to the colonies, and a new history for England and the English race ; or produce terrible suffering and a desperate revolution. Several contingencies hitherto unforeseen, or at least not sufficiently appreciated, may and probably will arise, which will tend to alter the position of England and the English industrial classes very con- siderably. Free trade is at once the governing principle and the modus operandi of English com- merce. It supplies and demands the fullest and unfettered competition. The enterprise and capital of the commercial world under its inspiration seek out all opportunities to buy in the cheapest and sell in the dearest markets those innumerable wares which gratify the wants and appetites of modern civilised society. For these purposes the floating palaces- which are now launched continuously from a hundred yards, driven with incredible speed by wonderful THE LABOUR QUESTION SOLVED. 115 machinery, traverse every part of the ocean, and search the harbours of the world. The electric wire conveys the news of all markets, the state of all harvests, and the condition and amount of the pro- ductions of every land. Ice and cold, which in the frozen regions embalm the giant frames of extinct monsters, are now used to preserve the sheep and cattle of Australasia and America in transit round the world. The rates of wages in all parts of the earth, especially throughout the British Empire, the harbours of different countries, the presence or accessibility of coal, iron, copper, and other substances, are daily becoming better known. It is not hazarding too much to say that China on the sea-board, Japan, India, Australasia, the South Sea Islands, and North and South America, are now to the English people better known in everything that relates to production and manufacture than most parts of England, Ireland, and Scotland were a hundred years ago. From these premises commerce has already made one deduction. The seas being bridged by great ships, the products of all countries, preserved by means of scientific skill, can be brought to Liverpool and London, to Glasgow and Dublin, to Manchester and Bristol, without risk and at a trifling cost. So Australia and New Zealand, the United States and Canada, Russia and India, transmit their cargoes of grain and wool, of meat and fruit, with ever-increasing volume. Commerce prospers ; the in- 116 PEOM POVERTY TO PLENTY; OR, dustries of all these different places are fostered and stimulated, and, what is better still, the price of the food of the English people is lessened. The con- sequence to the landowners in the United Kingdom is no doubt disastrous. They are finding and they will continue to find increasingly, that a free world- wide commerce must level prices, and that land in the United Kingdom used for the purposes of pro- duction is worth but little more than land in La Plata or New Zealand, in South Africa or the Crimea. I am not deploring the fact nor rejoicing at it, I am only stating it, that we may be better able to judge of the questions which by and by we shall discuss. So swift, certain, and cheap are now the means of communication over every sea, so widely and intimately known are the wants and requirements of every market, so omnipotent in modern days is the power of capital, so certain and inexorable in its operation is that law of wages laid down by Ricardo, so peaceful is the great world outside Europe, that there is nothing to prevent the majority of the manufacturing industries of Great Britain and the United States being shifted to, or replaced by immense manufacturing centres in India., in Africa, in China, in Japan, and in the Islands of the South Pacific. In these places labour can be obtained in practically limitless quantities for one-fiftli part of what it would cost an Englishman to live. Already has the tide begun to flow in these dii'ections, and in THE LABOUE QUESTION SOLVED. 117 more than one place, nay, in more than a score of places in the countries mentioned, have huge manu- factories sprung up founded by British capital, guided and governed by British skill and organising power, increasing the wealth of the merchants and employers, but worked by the patient labour of coloured races upon wages which to the humblest English workman would mean starvation. Great trade and great commerce, great manufactures and great wealth, especially when flowing only into the pockets of one class, are not the main requisites for the prosperity and permanent comfort of a people. That sudden attraction which in the manufacturing centres of the United Kingdom drew away so many of the agricultural labourers and peasant proprietors from the cultivation of the soil was not, in the true or best sense, an advantage to the people of England. It was indeed a change, but not a beneficial change, for it loosened the hold and affections of hundreds of thousands from the land of their birth, it made great armies of them absolutely dependent, not upon the soil which their fathers had tilled before them for many generations, but upon the fluctuations of trade and commerce, which at any moment, from events beyond their comprehension, may leave them to distress and starvation. When the wages of English workers in manufac- tories are reduced to the few pence upon which Chinese and the natives of Japan, Bengal, or the 118 FEOM POVERTY TO PLENTT; OR, South Seas can exist, then will be seen distress and sorrow and terror such as England never beheld and never dreamed of. Hunger; wretchedness, enforced idleness, furnaces blown out, mills stopped, mines un- worked, shipyards idle. It is needless to dilate upon the awful condition of a great and free people, con- quered by cheap labour in distant lands and hunger in their own. Have our philosophers and rulers fore- seen this ? It will surely come ; has it not com- menced ? Capital has no heart, no soul, no country, and no God, — except itself. There will, of course, be no possibility of foreign competition in some things. Duties and works that must be done locally ; indus- tries the requisites for which, whether of soil, climate, position, or materials, are local, or which require peculiar human aptitude, will still go on. But the general class of manufactures can be produced in those lands where labour is a drug and life easily sus- tained. Living and the conveniences of life will, indeed be cheap, cheaper than ever; but will that compensate the workers for the loss of their employ- ment ? There is upon the south-west coast of Ireland in the county of Cork a little village called Glandore. About seven miles off lies the town of Skibbereen, which in the years of plague and famine, '46, '47, '48, and '49, achieved an unenviable notoriety in Ireland, being, as I believe, the saddest union in that sad country. Glandore is prettily situated at the head of an inlet from the great Atlantic, and in wiater the THE LABOUR QUESTION SOLVED. 119 •nrestern gales liurl the waves of the ocean against a rock -bound coast. The land is tolerably fertile, the olimate good, the scenery romantic. As a boy I lived there in '48 and '49 ia an old, half- ruined, but pleasant castle, named after the place, ■Grlandore. Everything in that country was cheap. The castle, furnished and comfortably habitable, <;ost my mother twenty pounds a year. Meat was threepence per lb., everything else in proportion. I knew of men who worked for half-a-crown a week, and supported themselves. Cheap as was food, people were dying of starvation all around. A shilling's-worth of Indian meal would give food for a week ; but they had not the shilling, nor indeed a penny. There was no work, and amid comparative plenty thousands of strong men sank and died from hunger. From the castle windows as a boy I have often in the grey dawn before sunrise looked down upon the cottage and grounds of the Relieving Officer and seen, upon those days when relief was given, hundreds of wretched crouching forms, men, women, and children, old and young, waiting for the few pounds weight of meal that was to keep them alive during the coming week. The sight of such con- tinued suffering drove us from the place, and I shall not forget as long as I live the terrible scenes of famine and plague in that unhappy land. Cheap food and cheap articles of commerce are good, but, if he who requires them has not the money to purchase. 120 FEOM POVERTY TO PLENTY; OR, they are for him at famine prices, and are unattainable. It is not only necessary, therefore, to reduce prices and make goods cheap, it is also necessary that those who have to purchase should possess the necessary means. The day is coming when great numbers of Englishmen, besides our present pauper class, will not have the wherewithal to purchase, be the price ever so small. For capital, obeying its laws and instinct, will raise up great manufactures in lands where cheap labour is to be found, and our English labour will be at a discount. Nor are we to forget the swift current of life which continually increases the population of Great Britain. Each year sees nearly three hundred thousand children born into the world in the British Islands, over and above the numbers who die or emigrate. What is to be done with this incoming multitude ? A community will be permanently prosperous only in proportion as its people are settled upon the land, or have a personal interest in the national wealth. Any nation wisely governed, possessing civil and religious liberty, and of which the poorest class enjoys good food, suitable clothing, and commodious shelter arising from their own labour or their respective shares in the accumulated wealth of the community, is and must be prosperous and contented. In such a nation want, distress, and suffering would be comparatively unknown. Vice and crime would so materially diminish in extent THE LABOUR QUESTION SOLVED. 121 as to present a new and delightfal pliase in possible human existence. Thus in many parts of the new colonies of the empire where land is easily obtained and work is plentiful, — such, for instance, as the place in which I write, Gisborne, New Zealand, — theft is a thing almost unknown. No one fears to leave the doors or windows of his house open by night or day. There is indeed poverty springing generally from personal misconduct, but real want is seldom seen, and, when seen, soon alleviated by spontaneous kindness and charity. Free trade, as at present understood, must make all the world one great community, equalising wages by competition, and reducing all produce and manu- factures, as well as wages, to the lowest price possible. When this is accomplished, the price of all necessaries, and even comforts, will be gauged by the lowest possible wages for which in any land men can live. Of what avail would be such ad- vantages for English labourers or artisans when, even could they obtain employment, their wages were, as they would be, reduced to a few pence per day ? The old ideas of earning an honest livelihood, of dwelling in a peaceful home, and of leading a con- tented life, have yielded to an insatiable desire for the acquisition of wealth. To this consuming passion all other considerations are sacrificed ; the one desire is to get rich. In the keen struggle and competition for wealth sympathy is forgotten, obedience to the law 122 FROM POVERTY TO PLENTY; OR, of God is disregarded, the noblest feelings of the human heart are blunted, and the glorious teachings of Christ concerning a life of self-sacrifice and devotion towards humanity are ignored as com- pletely as if they never had been uttered. In lieu of the custom by which in other days labour was regulated and lands were held, the rule of competition has been adopted, by which labourers are reduced to starvation point and tenants are rack-rented out of house and home. The motto " Each for himself and God for us all " is used, but there is a commoner and more vulgar rendering of the sentence, by which each is to do the best for himself and a certain unname- able personage will take the hindmost. The results are becoming yearly more disastrous as well as more full of peril. The wretched condition of the poor in England, Ireland, and Scotland, in New York and Massachusetts, is a standing theme for wonder, if not for admiration. Wealth, indeed, is rapidly increasing, its accumulations are extensive beyond precedent. Its evidences abound in every region. Its magnificence outshines even the displays of Imperial Rome. The accounts given of the banquets, the assemblies, and the dances in great modern capitals, in their descriptions of costume, pro- fusion, and luxury, are similar to the stories in the " Arabian Nights " of effects produced by the use of Aladdin's lamp. On the other hand, the picture of the shivering wretches, the homeless and famished THE LABOUR QUESTION SOLVED. 123 crowds, who from the streets watch with fascinated eyes the gleaming of jewels, hear the strains of music, and sniff the odours of the viands, is more terrible in its ghastly misery than anything which history records. The results of many other principles which this science has commonly accepted may be fairly typified by the results of absolute competition. The predominant influence of this principle in deter- mining the demand and supply of labour has during the last century, and especially during the last fifty years, given to capital, or rather forced upon the owners of capital, a complete and tyrannical control over the great multitudes of the labouring class. But this control, although it be complete, is not capable of direction even by the capitalists themselves. Like the man in the story brought into existence by unhal- lowed means, this creation breaks loose from the rule and government of its maker, and by the exercise of its ungoverned power causes misery and disaster. Thus, while competition hands over the destinies of the many — the poor — to the government of the few — the rich, — the individual members of the governing class are themselves by no means safe. All modem writers admit the existence of unforeseen perils which, suddenly occurring, involve whole industries, — em- ployers as well as emoloyed, — in one' common catas- trophe of ruin. In olden times, the labourer, unless in days of famine, was tolerably sure of employment and of food. In the country, at first completely, then I 2 124 PROM POVERTY TO PLENTY; OR, partially, bound to the soil, at least his food and house- room were fairly secure. In the towns, the guild, or corporation, while it regulated his work and his wages, provided him with employment and ensured him a participation in the fruits of his industry. Liberty, which gave him freedom to go and come as he chose, and to offer his services to any employer, also deprived him of the right to claim employment, and left him to the laws of unrestricted competition, which in business and employment is the very essence of selfishness. The workman has to compete with other workmen ; the employer, — whether he be a manufac- turer or a farmer, or a shipowner or a merchant, — has to compete with other employers ; the nation has to compete with other nations. In these days, the different productions, whether of art or nature, of manufacture or of science, from every land are ex- posed side by side for sale in the various markets of the world. This brings to one level the value of the productions of different climates and of different nations. The producer and manufacturer are com- pelled to sell at the same prices as are asked by others for the same class of goods. They are con- strained, therefore, to reduce the cost of production to the same rate. Thus, as in some countries, wages are extremely low, as for instance in India, and in some parts of the continent of Europe, employers of labour in England and those colonies where free trade is practised are forced either to reduce the rate THE LABOUR QUESTION SOLVED. 125 of wages, to produce their commodities at a loss, or to close their places of business altogether. In this direction and manner capitalist employers are them- selves helpless ; but the strife among workmen to obtain employmentj and the necessity which exists among them to obtain work that they may earn the means of living, invariably places in the hands of employers the power, and competition compels them in self-defence to use that power, to reduce wages to the lowest amount which will enable the body and soul of the workman to keep together. The interim Report of the Lords' Committee upon the sweating system at the East End of London illustrates the terrible effects of such cut-throat competition. CHAPTER V. Contradictory and uncertain meanings of terms as used by different writers, Whately, Price, Perry and Wealth — Jevons and value — Are land and labourers capital ? — Sidgwick — Graham, attacks on theory of economy — The wage fund — Smith in error as to labour being the source of wealth and measure of of value — Sismondi, his repugnance to selfish foundation — Anticipation of disaster from Free Trade — Summary of laws and principles of orthodox economy, their false and erronous nature — Quesnay and Smith compared — Evil effects of Smith's selfish system — Attempts of economists to dismember the empire. AVING considered the development oi economic teaching since 1776, it is now necessary to consider the meanings of the terms used in it, as well as the component parts and principles of the system itself. The name popularly attached to this branch of study is somewhat ambiguous and misleading. Strictly speaking, its reasonings should be rather devoted to the considera- tion of the good order, especially in finance, of the body politic as a whole, than that of its families and members. But on all sides, the scope of political economy has become more and more identified with and limited to the material well-being of the individual members of the community. THE LABOUR QUESTION SOLVED. 127 Taxation and public finance receive some attention at the hands of writers, but the main parts, both of facts and arguments, are more directly devoted to what might perhaps properly be called and classed as social economy. The uncertain use of a common term, in this in- stance, is of but little practical importance, for we use the term as meaning the science of wealth. But when the same uncertainty is intruded into the use of terms necessary to argument and the ascertainment of truth upon a matter of such gravity, and the very names out of which a structure has to be built bear dubious and contradictory meanings, the want of pre- cision becomes not merely serious, but fatal. Upon any subject whatever, before argument can be main- tained or a true result arrived at there must be a common ground of dispute. In exact science, men agree as to the meanings of axioms and postulates ; in law, to an issue ; in politics, to a question. The premises are not subject to dispute, because, if they be, argument is useless and logic unavailing. Political economy is, of all subjects, the most un- happy in this respect. Not only is the name of the science itself indistinct, but the student is met at once with the remarkable and discouraging fact that all the principal terms used are ambiguous and contradictory in the meanings attached to them by different (and not seldom by the same) writers. This was forcibly pointed out by the late Archbishop Whately. 128 PEOM POVEETY TO PLENTY; OE, "For a specimen of the ambiguity of tlie terms most employed in political economy," said Dr. Wiately, " and of the tendency to neglect the defin- ing, or to depart in practice from the defined sense, I may refer you to the late Professor's account of the difi'erent definitions or employments by political economists of some of the commonest and most im- portant terms, namely, value, wealth, labour, capital, rent, wages, profit. There is no one of these in the use of which all the most eminent writers have agreed with each other, and hardly one of them in the use of which some one or another of these writers has not occasionally disagreed with himself."* Nearly all the writers on political economy, as thus pointed out, disagree upon the meaning of various funda- mental terms. Perhaps the most severe criticism upon the use of terms in the writings of the economists is contained in a recent book published by the Professor of Political Economy at Oxford. Mr. Bonamy Price (since this was written, unhappily dead) speaks with authority, and although he has no intention of so doing, he utterly demolishes any pretensions which the modern economists put forward to be expounders of a science. He begins by asking two questions, '•' Is political economy a science ? " and " What is political economy ? " Pointing out that the ordinary answer to this latter question is " the science of the produc- * Whately on Political Economy, 4th edition, 1855, page 161 . THE LABOUR QUESTION SOLVED. 129' - tion and distribution of wealth." Mr. Price proceeds- to ask " What is wealth ? " This question stands at the very threshold, and the Oxford Professor proves from the writings of dififerent authors of high authority, that not only do none of them agre6 as to the true meaning and extent of the term ^''wealth/' but Professor Perry flings away the word " wealth " and substitutes "service." He might have added also Mr. Senior> who, in lieu of "wealth" placed the term "utilities." The great Archbishop of Dublin desired to change the name of the science itself from Political Economy to " Oatallactics," or the Science of Exchange. The next term used is " value," and in relation to the meaning of this, Mr. Price shows how utterly con- fused and contradictory are the reasonings and defini- tions of the leading economists. The best illustration ever perhaps given is that of Sydney Smith. The learned and witty divine having joined the Political Economy Club, retired from it after a few months' membership, and on being asked the reason for such apparently strange conduct, replied that he had joined the club to discover what " value " meant, but that all he had discovered was that the rest of the club knew as little about the matter as he did. Mr> Thornton, in alluding to this anecdote, while criticising Professor Cairns's* remarks upon " value," observes that Smith's sarcasm was not unmerited nor untrue ;, and Bonamy Price, in summing up these criticisms, * " Cairns on Value," Cont. Review, 1876. 130 FROM POVERTY TO PLENTY J OR, concludes them by pointing out that Stanley Jevons felt SO deeply the hopelessness of attempting to explain " value/' that he was forced to exclaim " I will discontinue the use of the word altogether."* Thus^ as he says, one class of writers flings away the word " wealth," and another the word " value." Mr. Price does not by any means stop here. He proceeds to show that Mill, Jevons, Adam Smith, Perry, Danson, Shadwell, Macdonnell, Cairns, McCulloch, Bastiat, Thornton, Macleod, Donisthorpe, Pawcett, Whately, Lowe, Mai thus, Eicardo, Say, Chalmers, Goschen, Walker, Denny, Brassey, Bagehot, Leone Levi, Adams, Cobden, besides others more incidentally, are all more or less often in direct opposition to each other; and Mr. Price himself differs from each and all at different times and on different subjects. Nor are the disputes and controversies confined to the two terms of wealth and value. Rent, wages, profits, all emerge upon the scene as subjects of dispute ; all are uncertain, unmeaning, and confused in action. "It has been largely debated amongst economists," says Mr. Price, "whether land and labourers are capital. Mr. Donisthorpe t thus states the issue : — " " Are land and labourers rightly classed under the head of capital ? To this question four answers are logically conceivable, and only four : — Land, but not * Price, p. 34. t " Principles of Plutology," chap. i. THE LAEOUE QUESTION SOLVED. 131 labourers ; labourers, but noli land ; neitber one nor the otber ; and, lastly, both. " Is it credible that leading writers can be cited who among them return all four of these answers ? " Such is the deplorable state of anarchy reigning in this department of enquiry that there is no diffi- culty in doing this. Mr. Macdonnell accepts land, but not labourers. Adam Smith, labourers, but not land. McCulloch accepts both ; and Mill neither ! " Mr. Price does not follow the general practice of travelling over the whole ground trodden by those before him, but limits himself to a few subjects which he classes under the head of practical political economy. Nor does he attempt the exact and particular method so much affected by the ordinary writers. Mr. Price's edition of 1882 was followed in the suc- ceeding year by Prof. Sidgwick in a work which has deservedly attracted considerable attention, both from the style of its composition and from the broad and comprehensive view which the learned writer takes of the subject. Mr. Sidgwick rather severely criticises his brother Professor for treating the subject in a loose and inconsequential manner, but on the whole the Oxford Professor is more correct, and more likely to be useful than he of Cambridge. For Mr. Price acknowledges the confusion and want of system which exists, and therefore limits his remarks to some portions of the subject which he considers likely to 132 FBOM POVERTY TO PLENTY; OR, be practically useful, while the Cambridge Professor traverses the same old ground and continues the vain attempt, although with great erudition and luminous mental power, to make a complete science out of the odds and ends of orthodox political economy. The only parts of Mr. Sidgwick's work likely to be useful are the introduction, in which he displays considerable powers in collecting and classifying both mental and physical phenomena, and the last chapters of his book, where he seeks to apply practically for the purposes of actual life some of the laws of the science, thus inclining to the same method as Mr. Bonamy Price. After all, the two Universities teach much the same principles, the main difference being that the Oxford Professor recognises the fact that the so-called science is but a heap of unassorted theories and facts, some useful and others worthless ; while the Cambridge Professor attempts still to deal with the whole matter as a complete if unsatisfactory system. It is not only, however, in the use and meaning of terms that confusion reigns in the camp of the econo- mists. The laws which have been promulgated and the theories which have been submitted by different members of the orthodox school, are themselves the subject of serious quarrel and great diversity of opinion. No two writers agree upon the theory of political economy, as no two writers agree upon the meaning of the terms used. Almost the same dis- THE LABOUR QUESTION SOLVED. 133 cordance of opinions exists in relation to tLe principles of the science as is found in its terms and theory. I cannot leave the two Professors, Price and Sidg- wickj — one culling some parts of the current system which he desires to make practical, and the other attempting within the limits of the system itself to define it as a science, — without mentioning a more recent work, the very nature of which shows the hopeless uncertainty and confusion into which, the teachers who occupy the chairs of Moral Philosophy and Political Economy have drifted. I allude to "The Social Problem/' by Mr. Graham, of Belfast, pub- lished in 1886. This book* contains an entirely new kind of writing upon political economy, at any rate on the English side of the Atlantic. Mr. Graham does not feel himself in any way bound to travel within the lines of scien- tific argument. Tracing the origin of the modern movement as a movement of human sympathy and denunciation, first definitely uttered by Rousseau, and finally thundered forth by Carlyle, he does not pretend to formulate the creed of the present orthodox teachers, •or to criticise their doctrines. Using indifferently both the inductive and deductive methods, the Belfast Professor, whose sympathy for human suffering is as strong as that of Henry George, regards the position of society in reference to its duties and its dangers. With a powerful and sometimes masterly hand, he * " The Social Problem." W, Graham, 1886. 134 PEOM POVEETY TO PLENTY; OE, sketches the appalling contrasts produced by modern progress, and in no uncertain voice calls the churches, the aristocracy, the professions, and, indeed, all classes and orders in the State, to consider and to act. In parts of this able book, there are passages of philo- sophic generalisation as to the primary sources of agitation, the origin and progress of private property, the Malthusian doctrine, the rise of the capitalist aris- tocracy, and the reaction against Mammonism now rising in England, so wide that they are not only worthy of the most ample perusal, but are also likely to bear good fruit. In addition to the works already quoted, I would mention Mr. F. A. Walker's work, 1885. This author joins with the Germans in making a fourth class of the division and receipt of wealth in the employer, or entrepreneur, receiving profits, and he finds fault with English and American economists for neglecting the functions of the entrepreneur. Mr. Walker holds that the wages of the labourer include the whole remaining body of the wealth annually created, after deducting rent, interest, and the profits of the employer or entrepreneur. In this he follows and holds with Stanley Jevons. It is scarcely necessary to point out that both Jevons and Walker are utterly and completely wrong. Were it true that the labouring class did receive this portion of the wealth created, they would speedily become the owners of the greatest portion of the surplus wealth of the community. The error arises from the igno- THE LABOUR QUESTION SOLVED. 135 ranee and confusion among all economists regarding surplus or accumulated wealth, and its distribution. Mr. Walker holds entirely the doctrine of extreme competition, although he thinks that legislation may sometimes intervene with advantage. The whole work treats not of political economy as a science, but as a collection of maxims and of sub- ordinate laws. McOulloch attacks the law of wages as laid down by Adam Smith, and adopted by Say, Sismondi, Malthus, and others; and McLeod, in his " Principles of Economical Philosophy " (2nd edition, 1882), in a very wide range of philosophic thought and enquiry, fiercely and successfully attacks almost every principle maintained by the orthodox political economists down to John Stuart Mill. Outside the circle of what may be called teachers of the orthodox school, the leading principles of the political economy which has ruled the civilised world for the last century are not only criticised, denied, and refuted, but are held up to contempt and abhor- rence. In Germany, the Historical School, the Socialists of the Chair, and those thinkers whose ideas are summed up, on the one hand, by Kodbertus, Lassalle and Karl Marx, who, though living and writing in England, still belonged to Germany, and, on the other by Held, SchmoUer, and Von Ketteler, expressed in a greater or less degree their dissent from the current doctrines. In France, the difierent schools of the Communists and Socialists 136 FROM POVERTY TO PLENTY; OK, lead the attack on one side, wtile Louis Blanc and Victor Hugo assail it, directly or indirectly, on the other. In England, either particular doctrines or portions of the whole system have been combated with equal vigour. The Christian Socialists, headed by Kingsley, Maurice, Ludlow, and Hughes, reformers like Thorold Eogers and Howell, and the extreme Socialists, whose present leaders are H. M. Hyndman, Belfort Bax, William Morris, the well-known poet, and Miss Helen Taylor, whose intimate knowledge of the thoughts and intellectual method of the late John Stuart Mill add weight and value to her arguments, ■continually oppose many of the leading doctrines of the modern system, especially that portion to which has been commonly applied the epithet of the Man- chester School. An error of great importance is found in the doctrine of the wage-fund. It was asserted that a certain portion of the capital of a community was devoted to the employment of labour, and this portion of capital was designated the wage-fund. This wage- fund it was said, existing within certain limits, provided the only means of payment for labour, and if more labourers required subsistence than the wage- fund would employ, wages fell, bringing about a state of destitution and suffering, as the wages of the labouring class were not sufficient to provide subsistence. The •doctrine of the wage-fund has been exploded. Mr. Stanley Jevons gives a list of authors with whom he THE LABOUR QUESTION SOLVED. 137 agrees in disputing and denying the wage-fand theory, saying : " The relations of labour and capital turn mainly upon economic considerations, and the theory of the subject has been misunderstood, and perverted even by economists." Other writers whose ideas are summed up by Professor F. A. Walker, in his book upon the wages question, show not only that the current of thought is now set decidedly against this theory, but that it is inconsistent with logic and with experience. A simple argument will show the error of the wage-fund theory. All labour used for the produc- tion of wealth is paid by wages. These wages are drawn from capital, which is that part of wealth devoted to reproductive purposes. All wealth thus devoted is capital. Much wealth which could be converted into capital is never so used. The only limit which can be placed to the possible amount of wages is the total sura of wealth that can be so employed, which would form a very large proportion of the wealth of a country. Thus the total wealth of the United Kingdom is estimated at about ten thousand millions. Of this, it is quite possible that one half could be employed as capital, and paid as wages in one year. But who ever dreamed that five thousand millions would, or, practically speaking, could be so spent in the United Kingdom, in any one year, in paying wages ? The amount of wealth available for the purpose, which would 138 FROM POVEETY TO PLENTY; OE^ thereby become capital, is far greater than is ever so used. A more vital error than that of the wage-fand theory is found in the principle that wages as the purchase-money of labour form, the proper and sole payment for labour. The theory of Adam Smith upon this point is both more humane and more just than that laid down by Mr. Ricardo. It seems the merest common sense to state that he who labours is entitled to the full produce of his labour. If that labour require the assistance of capital to make a full development of its productive powers, the owner of the necessary capital should be paid for its use ; but when that has been done, it is then but simple justice that the labourer should receive either the produce of his toil or its value in exchange. The disastrous effect which the orthodox system produces upon the industrial classes is not the result of any one of these errors singly. It is rather the combined effect of a number of subsidiary and intermediate laws, all of which spring from the selfishness which is the founda- tion and root of the whole theory. Capital is, as we have seen, the ruling power in political economy. This is held to be a natural law, and, as such, is accepted as reasonable and proper. Practically, indeed, this is to a great extent true in fact; but that the ownership of capital should give one man the right to limit the food-earning power of his fellow men, to appoint their hours and modes of labour, to THE LABOUR QUESTION SOLVED. ISO' prescribe their dwelling-place and means of liveli- hood, to absorb and to enjoy the fruits of their labours, is to make the owner of capital a tyrant and his workmen serfs. It exists, in fact, as do many other evils and iniquities in the world. It will be the crowning glory of a true system of political economy to break in pieces this oppression, and to afford to every man labour suitable to his capacity, the results of which he will himself enjoy. Then, again, the doctrine of unrestricted competi- tion (which has been compared in its nature and action to the celebrated law stated by Dr. Darwin to exist among the lower orders, " the survival of the fittest ") has been proclaimed, especially by the Man- chester School, as the very soul and spirit of com- mercial life. But competitiouj as is pointed out by John Stuart Mill, is only, in its keenest forms, of modern date. It has, no doubt, its good side, lending spurs to energy, exciting the inventive faculty and producing a very general state of bodily and mental activity. But under the present state and circum- stances of our social economy, it has its bad side also. It has destroyed the confidence once placed in British manufactures ; it has flooded every market with "shoddy"; it has consigned thousands of ships to wreck and scores of thousands of gallant sailors to a watery grave ; it fills cartridges with powder that will not explode, and causes our soldiers to depend in the day of battle upon swords that will not cut and K 2 140 PROM POTBETT TO PLENTY; OB,, bayonets that bend like lead. It grinds tlie faces of the poor, and brings down the wages of the labourer, whether in field or city, to starvation point. It adulterates the food we eat, and poisons, by bad drainage and want of ventilation, the air we breathe. Springing from the same evil root, — selfishness and covetousness, — it deadens the moral sensibilities, de- bases the hopes and aspirations, and fills life with the tormenting excitement of avarice. It must not, however, be supposed that, in the midst of this struggling and swaying to. and fro in the meaning of terms and the assertion of principles, there were none who perceived the evil tendencies and pernicious consequences of the whole system. Within the camp itself there were at least some who lamented with bitter grief over the evil state into which the civilised communities had drifted, and who anticipated with anxiety, and even with terror, the gathering of the harvest likely to result from the seeds then being sown. Beyond the camp of the economists there were always men who perceived and denounced the injustice of the current philosophy, as there have been down to the present day. / But they were few among the economists themselves who ventured to attack the acknowledged maxims and the practice of the principles contained in the orthodox school. In more modern times the whole public feel- ing among economical writers has undergone a great change in this respect. The evil tendency of selfish- THE LABOQK QUESTION SOLVED. 141 ness is openly admitted and lamented j the threatening aspect of society is acknowledged and deplored. But in the first half of this century results had not yet so far been accomplished as to place beyond doubt the fact that the tendency of the orthodox political economy was evil, and pregnant with national disaster. Sismondi, who by many writers is held to be the precursor of the Socialists of the Chair, was the first to permit his feelings of justice and of sympathy to overcome his reverence for the great names and reputations which had lent their sanction to the received system. After many years of devoted adherence to Adam Smith and his successorSj Sismondi became convinced that the science as taught by them had nothing life- giving or wholesome in it. In a long conversation which they had together at G-eneTa a short time before Ricardo's death, Sismondi said, " What ! is wealth, then, everything ? Are men absolutely nothing ?" As Quesnay and Smith are the real founders of political economy, Sismondi may be called the first reformer. His soul rebelled against the selfish system of the current theory. He longed to see a fair adjustment of the rights of labour and capital. He rejoiced in the profit-sharing of agriculture ; he mourned over the apparently certain doom which brooded over modern society. But he had not the knowledge necessary to enable him to frame or 142 FBOM POVERTY TO PLENTY; OE, •suggest a remedy. M. Miotelefc well said of him, "His glory is to have pointed out the evils; courage was necessary for that ! — to have foretold new crises. But the remedy ? That is not an affair of the same man or the same age. Five hundred years have been required to set us free from political feudalism : will a few years be sufficient to set us free from industrial feudalism ? " The heart of Sismondi was very large. All human sufferings seemed to find a home there. The degradation of the Roman people, the miseries of convicts in Tasmania, the wrongs of Ireland, — in short, the universal sufferings and wrongs of the poor drew from him denunciations at once terrible, eloquent, and true. Let one sentence, which will at this time strike home to every heart, reveal the deep sympathy which burned within him for the oppressed of every land, — "The social order of Ireland is essentially bad, it must be changed from top to bottom. The question is not to give the bread of charity to the famished poor ; it is to secure existence property to every man whose hands are his only wealth." This was written before the great agitator O'Connell had commenced his arduous labours. Animated by a lofty Christian faith, inspired by a charity wholly unbounded, saddened by the contem- plation of widespread want in the midst of plenty, he spoke and wrote with almost prophetic foresight of the time when all abuses should be Tectified and the toilers of the earth share in the enjoyment of its THE LABOUR QUESTION SOLVED. 143 bounties. Daring his life time, Ms efforts in this direction bore no fruit. " I shall leave the world,^' he said in a time when he was greatly depressed. " I shall leave the world without having made any impression, andnothing will be done." He should have remembered that work such as his is never lost. It is the seed of the Kingdom of God. Rather should he have echoed the words of our own great martyr at the stake, " Courage, brother, we shall this day light a fire in England which shall never be extinguished." Sismondi first taught that association and sympathy were a better and wiser foundation for political economy than selfishness and individuality. He it was who asserted that the true aim of this science was not merely to show how the wealth of a nation might be increased, but how the happiness and well-being of the whole community could be enhanced by the equitable dis- tribution of wealth when created. His work will not die. He has accomplished good. The great principles which he advanced and defended are now the heritage of all. He and such as he, though not triumphant during their mortal lives, have enriched mankind with a wealth more enduring than the gold of California or Peru. It is remarkable that Sismondi and those who fol- lowed him took a far more just and correct view of the operation, not only of the current political economy generally, but of the operation also of its component parts, than the leaders of the Manchester School. 144 FKOM POVERTY TO PLENTY; OE, Every one remembers the prophetic visions of un- paralleled and universal prosperity in which Mr. Bright and Mr. Oobden indulged at the inauguration of the Free Trade movement. Have those prophecies been fulfilled^ so far as the vast majority of the people of England are concerned ? In contrast with those golden dreamSj let me place a few plain words written in 1847 by M. Miget in his translation of a collection of Sismondi's tracts : — " There can be but little doubt that we are rapidly advancing to a perfect freedom from restriction on trade, which, with the cheaper and more regular sup- ply of food consequent on the repeal of the Corn Laws, is looked to as the one great cure for our social evils. But may it not be well seriously to consider that even were trade as free as the winds to every corner of the earth, yet if merchants and manufacturers look upon markets as unlimited, or only limited by the wants of the consumers, not by their income or means of pay- ment, more will be produced than can be sold and consumed in a sufficiently short time to produce pro- fitable returns, markets will be overstocked ? . . . May there not also be just reason to fear that free trade will tend to foster the eager desire after wealth, and that anxiety to make large profits; and yet to under- sell in foreign markets, which can only he done by pro- diocing at the least cost, and must therefore lead to efforts to cheapen labour to the lowest degree that the amount of population and the cost of subsistence render possi- THE LABOUJJ QUESTION SOLVED. 145 ble ? " I have italicised these words because they are truly prophetic. Daring the year 1886 a great Commis- siorij composed of the leaders of commerce^ politics, and economic science, was inquiring into the causes of the present long-continued depression of trade and manu- facture. This Commission has, after exhaustive exami- nation, made its report. What does that report say ? It simply proves that after forty years of trial the dreams of Messrs. Bright and Gobden have been rudely dis- pelled, and the anticipations of the translator of Sis- mondi absolutely realised. Production is overdone, and markets are glutted. Employment is scarce, multitudes are starving. Even Manchester is turning upon the principles of free trade. What is the remedy proposed ? Why, that the cost of production shall be reduced to the lowest limit, which means, of course, that labour must be cheapened to the lowest degree by which subsistence can be obtained, — and perchance, on the doctrine of Ricardo, lower still. It would be at once useless and wearying to pro- ceed at length to discuss the various errors, false prin- ciples, and uncertain interpretations contained in the writings of the numerous teachers who, directly or indirectly, treat of political economy. It is difficult to understand how so many clear intellects, so much, learning, so vast a mass of right feeling and humanity as were possessed and are still possessed by the lead- ing writers upon this all-important subject, could have assented to the weak and puerile arguments, the fal- 146 PEOM POVERTY TO PLENTY J OB, lacious reasoning, and the inhuman principles of the so-called science. Men who, without doubt, would have given all their worldly possessions, devoted all the powers of their intellects, and, if necessary, have sealed their devotion with their blood in the cause of ^eir country and their race, have yet during four generations condemned the people that they loved to a servitude more terrible than that of the Neapolitan galleys. It is impossible to comprehend how, with the light of heaven all around them, with the mate- rials scattered in profusion at their feet for the per- manent well-being of all classes of their countrymen, they could have failed to see the way marked out for them by the hand of Providence, and failed to lead the nation that looked to them for guidance to a great and happy future. Without, however, entering too minutely into details, I venture to sum up in a few paragraphs the leading principles and laws of the present system, and to pronounce their utter uselessness or their completely erroneous nature. In attempting a synopsis of the leading features presented by the orthodox teaching, I do not desire to impugn the self-evident propositions which, by im- memorial human practice, have become a part and portion of human life. What I intend is to show that the principles, laws, and maxims laid down by modern writers upon this subject are erroneous. In other words, that the foundations upon which the supposed science is erected are unsound and unsubstantial. At THE LABOUR QUESTION SOLVED. 147 the best, the principles themselves are but few and meagre. They can be classed in a very shorb cate- gory, and the arguments by which the majority of them are disproved have already been considered. Placing, then, these principles and laws in cate- gorical position, I state them as follows : — Laws and Principles of the present System summarised. 1. The foundation of the system is selfishness, utter and complete. 2. Labour is the source of all wealth. 3. Labour is the measure of value. -1. The produce of labour is its proper remune- ration. This is altered by Ricardo as follows : — There are two prices of labour. (a.) Natural price, which will provide the means of subsistence to the labouring class without any increase to its num- bers. (&.) The market price, which varies, sometimes when labonr is scarce and employment plentiful, being above the natural price, and at other times when employment is scarce and labour plentiful, sinks be- neath, and win not give the means of subsistence to the labourer. o. The wages fund,— which states that there is a 148 FKOM POVERTY TO PLENTY ; OR, certain defined portion of the available capital of a community whicli forms the only source from whence wages are paid. 6. The Malthusian doctrine, that population outruns subsistence, inasmuch as population increases in geometrical, and the means of subsistence only in arithmetical, proportion or ratio. 7. The law of rent. — That rent is the difference or margin in value between the laud paid for and the poorest land in cultivation. 8. The law of profits. — Profits are the rewards of abstinence. 9. The law of value, summarised by J. S. Mill, in seventeen long propositions.* 10. Competition is the cause of progress, when combined with selfishness. 11. Free Trade is the certain condition of increased wealth and national prosperity. 12. Laisser faire, including supply and demand. Government should not intei-fere, but leave all things relating to demand and supply to their natural course. 13. All produced wealth is distributed among the owners of land, capital, and labour, the three factors of prodaction in the shape of rent, wages, and profits or interest ; and last, — 14. The latest development of the selfish and iso- lating spirit animating the economists, the * People's Edition, 1865, p. 290. THE JABOUR QUESTION SOLVED. 149 deoolonising school recently formed^ but now defeated. To summarise the meanings of terms used, and the doctrines promulgated in the standard works of the leading writers upon the orthodox science, is to prove, without a possibility of refutation, the ignorance of the teachers and the pernicious nature and general worthlessness of their teaching. From the formation of selfishness to the final re- sults, antagonism between capital and labour and unfair distribution of wealth, it is without a redeem- ing feature. In traversing one by one the assertions of the economists, this is seen so clearly as to make it wonderful that men could so long have been led blindly by an aggregation of pernicious untruths. 1. The proper foundations of the science are not selfishness and individualisation. 2. Labour is not the source of wealth. 3. Labour is not the measure of value. 4. The natural price of labour is not mere subsist- ence. 5. The wage-fund has no existence. 6. Population does not outrun subsistence. 7. The law of rent is not only in very many instances untrue, but is altogether superfluous and un- necessary. 8. The law of profits, as stated by Senior and John Stuart Mill, is ridiculous and incorrect. 9. The law of value is indefinite and unmeaning. 150 FROM POVERTY TO PLENTY; OR, 10. Selfisli competition is not the only cause of progress. 11. Free Trade is not the certain cause of increased wealth, either to nations or individuals. 12. Laisser faire, as now understood to abandon the weak and helpless to the tender mercies of the strong and unscrupulouSj is neither right nor prudent. 13. All produced wealth is not distributed in the shape of rent^ wages, and interest or profits. 14. To cut off the colonial empire would be to ruin England and inflict a serious blow upon civilisation. Political economy, as taught from Adam Smith to Pawcett, is not a science. Its language and nomen- clature have no fi.xed meanings. It is as impossible to argue accurately upon the propositions laid down by standard authors in the so-called science as it would be to argue upon the problems of the first book of Euclid if the axioms and postulates possessed innumerable and contra- dictory meanings. If a square were sometimes held to be a circle and at other times a triangle, as well as a rectangular figure with four equal sides, it would be impossible to demonstrate one solitary truth concerning it. But if all its terms were reduced to a certain and distinct meaning ; if all its pi'inciples and laws were true beyond dispute ; even then it would be useless. For, as Kingsley points out, there is in it nothing THE LABOUR QUESTION SOLVED. 151 synthetic, nothing constructive. The mechanical engineer, knowing the laws of his science, builds the vast steam engine, whose parts all appear in due pro- portion and position. The architect, studying the rules of his art, erects the commodious dwelling or the stately temple. The shipwright, the civil engineer, the chemist, all pro- ceed upon known principles and undisputed premises to construct the objects of their desire or accomplish a fixed and definite purpose. But with political economists it would be only and barely possible to gather sufficient from the orthodox science to make a tolerably successful attempt at production. Concerning exchange many of the laws are vague and indistinct, while as to distribution there are none, or, if there be, they are kept secret. And in addition to the evidence already given regarding the utter confusion as to the meaning of terms and the truth and scope of laws, it is only necessary to assert that the Parliaments of all civilised countries, espe- cially of the English-speaking nations, have, obeying the instincts of nature and humanity, in the course of legislation upon social subjects, remorselessly thrown aside the fundamental principles of freedom of contract, free trade, and Laisser faire. It is humiliating to think that the intellect of the nineteenth century has been so narrow and so cramped upon this subject. While upon matters of far less importance it has roamed throughout the universe ; upon this, the one question which presses upon 152 FROM POVERTY TO PLENTY; OR, modern civilisation, it has not been able to advance beyond the mere alphabet of the science, and has not understood even that correctly or completely. This ignorance is no doubt greatly owing to the fact that so little direct enquiry has been instituted. Not one even of the writers who have devoted time and attention to its consideration has attempted to go 'to the foundations upon which it rests. All have been content to believe that those foundations were well laid, and this assumption, the taking for granted that the premises of the economists are correct, has effectually prevented any real and exhaustive exami- nation. Once questioned, the whole fabric falls to pieces, and it becomes evident that he who would erect or interpret a true science of wealth must com- mence from the beginning. It is not necessary, nor would it be expedient, to disregard the history of the different movements, for in them all and in each of them there is an amount of truth both in theory and in practice essentially useful to the inquirer ; while in a comparison of the different systems and of the different writings of the teachers will be found guiding lines of thought which, if not infallible, will be at least extremely useful in the ascertainment of the truth. When considering from this point of view the different bearings of thought and argument, it will be expedient as well as necessary, even at the cost of repetition, to place them side by side, to compare them in many ways, and to THE LABODE QtJBSTION 30LTED. 153 discover with, approximate certainty their exact purpose and place in a true system of political or social economy. Comparison between the different Systems. — The commercial system beheld the science of wealth in its infancy. Experiment preceded theory. To the attentive mind it apparently presented similar results as arising from similar circumstances. Gold and silver being the universal media of exchange, and conferring upon their owners the universal power of a,ppropriation, became the absolute sign and symbol of all wealth. No motives were assigned, — no principles taught, — no enquiries prosecuted as to cause and effect or motive and action. In the same way as the husbandmen perceived that if at the proper season he cast his seed into ground properly prepared, it would according to fixed laws yield him his harvest ; so the merchants and princes of the sixteenth and seven- teenth centuries saw, or believed they saw, that the commerce which brought them gold and silver brought them wealth ; for gold and silver commanded generally all other material objects of desire. The speculations of Quesnay extended indefinitely the horizon of economic thought and discovery. His hand was used by Pro- vidence to open the gates of knowledge and to reveal a new and hitherto unknown region, full of all things beautiful to the eye and good to the taste. Even the widest development of the commercial system could but show the advantages derived from the exchange L 154 FROM POVEETY TO PLENTY; OE, of wealth already in existence. Oftentimes the gain of one was the loss of others. Commerce and banking which seemed to him the ideas and teachings of the earlier writers, good as they were in themselves, did not contain more than a part of the laws of exchange. And the laws so contained were for the most part erroneous. They attempted merely to show the methods and results of commercial intercourse. The work of the French philosopher was of infinitely wider scope. Recognising the existence of wealth already produced, and the necessity which always would exist for the production of fresh wealth, he sought to trace out the sources whence it flowed, and the laws by which it was produced. To his mind mere ex- change was of secondary importance, for that would be certain to happen. The great questions to him were, first, Whence comes the wealth which supports and blesses men ? Second, What are the natural laws and conditions of its production ? It was but natural that Qaesnay should attach primary importance to the labours of agriculturists and others who were engaged solely in producing wealth from nature. For he un- hesitatingly and correctly declared that physical nature, and that only, is the true source of wealth. This foundation principle of the physiocrats is, as we have seen, contradicted by Adam Smith, and his statement that labour is the source of wealth has been generally adopted by modern writers. The question is, however, beyond dispute. No weight of authority. THE LABOUR QUESTION SOLVED. 155 no amount of assertion^ no arguments of casuistry, can for a moment shate the immovable foundation laid by Quesnay, — that nature is the sole original source of wealth. Labour produces^ adapts, improves, and changes in form and value all material substances, but the mine whence they are all originally obtained is nature. To him who wisely beholds this great world, — full of hidden treasure, replete with appliances for human comfort, surrounded and governed by ten thousand harmonious natural laws, which, when discovered, open new fountains of precious things, new mines of gold, — the doctrine of Quesnay appeals with irresistible force of conviction, and affords intense delight. For it proves conclusively that the Creator has been mindful of His creatures ; it con- vinces the mind that God's hand in nature has richly provided for the wants of all. It demonstrates, with simple but unerring certainty, that hunger, want, and poverty are not the proper heritage of mankind, nor of any living soul upon the earth. Ignorance may hide the path to the land of plenty; selfishness may close the doors of nature's granary ; and philosophy, falsely so called, may wreck the hopes of generations and entail misery upon nations ; but the earth lies waiting to give forth her treasures. In her heart are mines of gold and silver, of coal and iron ; upon her broad and loving breasts are yellow harvests and ruddy fruits. The lowing herds and bleating flocks are her dower to her children, and without limit she yields the oil which L 2 156 IKOM POVERTY TO PLENTY; OE, makes man's face to shines the wine whicli gladdens, and the bread which strengthens his heart. To say- that God has not provided for man is untrue. It is our duty to find out how the bounties of nature may be enjoyed by all the families of earth. Quesnay opened once more the gates of the material Paradise^ revealing to men the glorious heritage bestowed upon their race. He did not pretend bo lead them into poesession. Yet his work was great and useful. For the work of the teacher of a true political economy is but the application of practical Christianity to the wants and sufferings of men. He who feeds the hungry from God's storehouse^ — he who clothes the naked with the products of nature, — he who builds dwellings for the homeless on God's earth and directs labour to its proper objectj — is truly the almoner of God. As Quesnay had gone beyond the mercantilists in his search for the sources of wealth and the laws of its production, so Smith went beyond Qaesnay in his efforts to find out the motives which animate men in the acquisition of wealth, the means employed for the attainment of their purpose, the natural laws which governed the employment of the respective factors of production, and the various and perplexing, com- parative and relative positions occupied by diSerent classes and individuals in the struggle for life and riches. Smith was in advance of Quesnay, equally in the field of his enquiries, the amplitude of his facts and illustrations, — and the general design of his work. His aim was both philosophic and noble. He desired THE LABOUE QUESTION SOLVED. 157 to reduce to a system, capable of application in all places and at all times, the production and exchange of wealth. But the best purposes of men, however noble, are not always achieved. Sometimes the means used are insufficient, sometimes they are im- proper, and sometimes they are calculated not to accomplish the end desired, but to defeat it. Fer- dinand and Isabella raised Spain to the summit of greatness. Under their beneficent rule justice was administered, discovery encouraged, invention stimu- lated, commerce fostered, and art and literature en- nobled. And yet the loftiest and holiest desire of that Royal pair prepared the way and provided the means for the decay and ruin of their beloved country. Intensely desirous for the happiness of their people, and deeply impressed by religious convictions, they drove the Moors out of Spain, and handed over the real government of their kingdoms to the Inquisition. To them this step seemed certain to be successful. History proved their hopes to be utterly fallacious. Beneath the awful zeal, the terrible despotism of the Holy Office, the courage, the faith, the wisdom, the patriotism, and the loyalty of Spain died out, and left ber a wreck among the 'nations, and a mockery to Europe. I do not know of any better simile than this with which to compare the work of Adam Smith. Of him, as of Ferdinand and Isabella, the words of Shakspeare might be uttered : — " The evil that men do lives after them ; The good is oft interr'd with their bones.'' 158 FEOM PCVEETY TO PLENTY; OB,, In Ms desire to supply a motive power for progress and the spring of action amongst men in the acquisi- tion of material good, Smith selected selfishness as the sole operating cause and the proper cause. He dethroned humanity from its dominance in the world, and placed wealth and capital upon the seat of government. Keen, unsparing, and pitiless competition usurped the place of pride which custom had so long enjoyed ; a false standard of value, — that is, the labour standard, — was introduced. Summing up the theory of political economy, as given to the world by Adam Smith, the lowest, narrowest, and meanest possible principles were preached as those of nature, and therefore of nature's God. These pernicious doctrines were hailed with delight by the great majority of thinkers. The few who objected were deemed only fit for a lunatic asylum. The evil seed rapidly ger- minated and bore fruit. The friends and followers of Adam Smith carried out his principles in other directions. Mr. Malthus clamoured for a law which would have rescinded the commandment of God, and condemned millions of unofi'ending children to certain death. Mr. Ricardo laid down his "iron law of wages," which declared the reward of the labour which produced all wealth to be the mere necessaries of existence. An endless war was declared between the rich and the poor, employers and employed, and an absolutely im- passable barrier was erected between political THE LABOUE QUESTION SOLVED. ISO* economy and pTiilantliropyj between the law o£ wealth and the law of God. The eflfects of the practice of our present system during the last hundred years have been^ on the one hand, to stimulate, with unparalleled influence, dis- covery, invention (especially in all labour-saving machinery), and the increase of accumulated wealth ; on the other hand, to disorganise society, to sow dis- trust, suspicion, and hatred between the different sections of the community, and to debase all public and private feeling to the vile standard of a money value. The consideration of these effects in one direction will illustrate this argument. The latest national development of the selfish and isolating policy, the effect of the orthodox science upon England's future, was found in the plan, openly advocated by Mr. Goldwin Smith and other leading economists, of severing the ties which bound Greater Britain to the old land, and casting off the whole colonial empire, including India. It is diflScult to believe that any sane man not utterly ignorant could seriously meditate the abandonment of those mighty territories, that world-wide empire, which is England's present glory, and the guarantee of her future greatness and safety. The next generation will scarcely credit the statement that the influence of the teachers of a selfish political economy was so great in the United Kingdom, that they had obtained the tacit consent of all political parties to the disruption and desertion of 160 PEOM POVERTY TO PLENTY; OE, the -whole outside empire. They had no mercy. From the ancient kingdom of the Moguls to New Zealand, from Canada to Hong Kong, all were to be abandoned. Lands won by the sword, lands ceded by treaty, lands obtained by occupation, all were to share the same fate. The fruits of a hundred victories, in which on land and sea the blood of our best and bravest had been shed like water, were to be given up and sacrificed at the shrine of Mammon. The labours and sufferings of centuries were to be forgotten or only remembered as a dream. The graves of sainted martyrs and of gallant warriors were to be deserted. Cities as great as the capitals of Europe, — a commerce vaster in extent as it was greater in value than that of any nation ancient or modern, save of the united empire of which it formed a part, — all were to be voluntarily abandoned. The Red Cross of Britain was no longer to float proudly in widely-sundered lands. A sentence of eternal banish- ment was decreed upon the millions of colonists, who, going forth in full love and allegiance to the Queen of . their people and the country of their birth, had crossed the sea and made their dwelling in the wilderness, carrying with them to their new homes, the boon of freedom, race, and country which is the heritage of every Briton. The beat of the morning drum around the world was to be silenced. The sun was to set upon Britain's empire. No such act of national suicide was ever contemplated by the leaders of any people. Had they succeeded, — and it is beyond question that THE LAEOTIE QUESTION SOLVED. 161 they had arrived^ to use Mr. Gladstone's phrase, within ''measurable distance'' of success, and already in South Africa commenced to dismember the British Empire — to what a future of misery and peril would they have doomed the British Crown and the British people ? It is impossible to contemplate their pur- poses without indignation, or their plans without contempt. "The colonies cost England money." This was their cry. Cut off the colonies, let them shift for themselves. Everything is to the economists and the Manchester School to be measured by money. Even to this day Mr. Bright ridicules the idea of a federated empire. The idea was to keep a powerful navy in the narrow seas, to form a strong and elastic military force within the four shores of Britain, to isolate England from all outward interests and complications, and then to turn the once " Merrie England" into a vast workshop, from whose looms and forges the markets of the world might be supplied. For this result the great- ness of Britain was to be bartered, — her diadem broken, her influence for good among the nations of the earth for ever lost. For this ignoble end the manifest destiny of the English race, so far as England was concerned, was to fail of its accom- plishments, and her light was to go out for ever. In twenty years the dream would have been rudely dis- pelled. Foreign competition would have pressed far more heavily than it now does upon English manu- 162 FEOM POTEETY TO PLENTY. factures ; the colonial markets ever expanding, the colonial lands ever open to the great stream of British, emigrants, would have been the heritages of alien nations. Discontent and want coming like an armed man ; hopelessness within and contempt and insolence without ; would have been the fruit of this gospel of greed. No politician would now venture to propose the abandonment of the colonies ; no leader of a party would dare to propose the abdication by England of her premier position amongst the nations. Selfish in its principles, short- sighted in its views, unphilosophic in its structure, its teachers and professors squabbling about the meaning of the commonest and most indis- pensable termSj its disciples straying to and fro " in wandering mazes lost," striving to reconcile the con- tradictory utterances of the prophets of the science, utterly useless for all constructive purposes, hopeless of good, powerless to remedy the evils which afflict humanity, — assailed on the one hand by the cries of suffering and the pangs of want, invited on the other by illimitable means of ^usefulness, but utterly unable either to defend itself from the attacks of its enemies, or to avail itself of God's widely given opportunities ; the orthodox political economy is a complete and disastrous failure, a ghastly parody upon the true and immortal interpretation of the Divine goodness to- man in nature. CHAPTER VI. Eemedies proposed by economists for the condition of industrial classes — Poor Law condemned — Legal minimum of wages — Grants in aid of wages — The allotment system — Its advan- tages and disadvantages — Education — Free trade and protec- tion — Uncertainty in many minds upon these rival theories — Both parts only of the laws of exchange — Tendency of each — Emigration — Difiference between emigration and colonisation- Necessity for providing new fields for surplus population — Systematised co-operative colonisation — Its nature and ad- vantages — Proportionate increase in wealth and population in this century — Aggregation of wealth in few hands owing to ignorance of laws of distribution. |HB spectacle of human suffering has on many occasions and in many ways called forth the sympathy of men, and prompted the formation of plans and systems of relief. In olden times the Church took upon itself the burden of providing for the poor, and amid the corruptions which stained the later history of some of the monastic orders in England, the benefactions and hospitality of the great religious bodies formed a bril- liant contrast to the selfishness and tyranny of the ruling powers. When the monasteries were sup- pressedj and their wide lands given to the servants 164 PEOM POVERTY TO PLENTY; OB, and flatterers of the Tudors, these sources of relief were irrevocably lost to the poor and oppressed. la lieu of the charitable aid afforded by the Church, the Legislature gradually formed and altered the Poor Laws until they grew into a colossal pauperising machine, at once a burden and a disgrace to the com- munity. Modern economists have not hesitated to condemn the Poor Laws. Although they have not been able to propose anything in their place, and, therefore, have not seriously sought to abolish them, yet they pass without hesitation their verdict of dis- approbation upon a system which compulsorily levies taxes upon property in order to provide a starving multitude with scanty food and miserable dwellings. They would, if possible, cast the whole burden of the pauper classes upon the free-will offerings of the charitable, and if those offerings were not sufficient for the purpose they would leave the poor and the helpless to the hand of fate. Some partial remedies proposed by different economists, which I will now proceed to consider. The propositions of Mr. Malthus have been already discussed, and it is needless again to refer to them. Besides those propositions, it has been suggested by Tvell-known and respected writers that the State might so far interfere with freedom of contract be- tween employers and employed as to decree by law what sum should be the legal minimum of wages. The legal maximum of wages in the interests of em- THE LABOUR QUESTION SOLVED. 165 ployers and landowners was long since fixed by statute and found unworkable. Much less would any legal minimum of wages be likely to succeed. So numerous would be tbe temptations to avoid an arbitrary law of this character, so dreadful would be the result if em- ployers were unable through competition to give the sum fixedj that it is difficult to believe in the possibi- lity of any measure of this sort ever being permanently successful. A modification of this system has been proposed, — namely, a statutory allowance in aid of wages ; and this proposition has received support from many respectable thinkers whose opinions are worthy of consideration. But the allowance in aid of wages is even more untenable than the fixing of a legal minimum of payment. It would be liable to so many variations, to such abuse, and would afflict the whole community with such an inordinate weight of" taxation as to become practically insupportable, while it would extend the operations of the pauperising spirit far and wide. Another proposal, and one of a more practical cha- racter, is the allotment system, by which, through the interposition of Government and of local bodies, the industrial classes were to receive small allotments of land for each family or each individual. This prin- ciple has been somewhat travestied of late years, and held up to ridicule as the "three acres and a cow" system ; but there can be no reasonable doubt of the- many benefits that would arise to the workers of the- 166 FROM POVERTY TO PLENTY; OE, community if, besides the wages of their labour earned from employers^ they and their families could live upon and cultivate a small plot of ground. But here, alsOj innumerable difiBculties surround the application of a theory at once wise and expedient. It would be impossible to provide the great majo- rity of the labouring classes who live in the centres of population with even half an acre of land each. The allotment system might in some instances be bene- ficially employed ; but it cannot be applied upon an extended scale by reason of natural and physical obstacles. To enable each man in the community to obtain a small piece of land, far distant it may be from his present home, even accompanied by a moderate sum of money, would be in many cases practically useless. How many could now leave their various employ- ments and at once become practical farmers and gardeners. It may be that some have been trained to that life, and that some others possess such quickness and per- ception as would soon fit them for agricultural pursuits. Even in such cases there would be difficulties which they might not be able, perhaps not willing, to en- counter. The systems of land tenure described at consider- able length by Mr. J. S. Mill, the Metayer system, the Cottier system, and the proposed Allotment sys- tem are all subject to very grave objections. At the THE LABOUR QUESTION SOLVED. 167 best they are but a revival of the small individual form of production whicli works at such terrible dis- advantage when compared with the large and organised system. The small tenant farmer or even small free- holder bears the same relation to a great landowner whose extensive estates are worked by machinery upon a grand scale, and in organised and systematic methods, as the owner of a hand-loom bears to the manufactory of ten thousand .spindles, or as the blacksmith working in competition with the vast foundry employing five hundred hands. In some instances, no doubt, such as market gar- dens near a great town, the small proprietor may hold his own, as a blacksmith will also do for shoeing horses, and work of a similar kind, which requires care and minute attention to small details, and par- ticular individual requirements. But the work of the future will mainly be conducted on a large scale, whether it be colonisation, husbandry, manufacture, or commerce. And it will be performed not only on a large scale, but upon the associative principle, with economy of labour and organised system. I do not in any wise wish to disprove the arguments used by Mr. A. E. Wallace as against landlordism, and in favour of occupying ownership, because I believe him to be in the main, correct ; but I unhesi- tatingly assert that production for mutual benefit upon a large scale in these days is better generally j than individual production from small areas of land. 168 FBOM POVERTY TO PLENTY; OU, The well-kaown instance of the Channel Islands given by Mr. Wallace in favour of peasant proprie- torship is a case in point. Jersey and Guernsey are composed of fruitful soil, and possessing superb climates. All the small farmers are near a market. Num- bers of persons with settled incomes retire to those beautiful islands to spend their lives and incomes there. These are not producers, but consumers of local produce. Thousands of tourists visit St. Helier's and Peter's Port every season. To carry these to and fro a constant commerce is kept up with English towns, especially London. To London there- fore they are practically as near as the market gar- dens of Surrey or Middlesex. But put a man away in the bush in Australia or New Zealand, in the backwoods of Canada,, or the prairies of the Western States, and give him a small capital in money and stock, and a comparatively small area o£ freehold land, from the fruit of which alone he must support himself and family, and he will, if not starve, at any rate merely eke out an existence. Place, however, ten thousand such men and their fami- lies, with the aggregated proportionate capital, upon two or three hundred thousand acres of land, and, under ordinarily good management, and an organised system of labour and production, you will have a prosperous, even wealthy, community. In small holdings thei'e is so great a waste of time^ THE LABOUR QUESTION SOLVED. 169 money, and labour, that unless aided by advantages of situation and of fertility, it is impossible that produc- tion from such restricted areas can compete with the foreign producer or afford anything more than the barest means of existence to the present proprietor. In these days a mere rude subsistence is not sufficient to satisfy the educated and increasing wants of the labouring class. So many are the requirements of modern life that what a man's hands can grow on a little plot of land will not be sufficient. Regarding as more peculiarly befitting the majority of men, the different callings and manufactures in which they are engaged, and by which they live, it is evident that it would be impossible for them to compete individually with the great and wealthy employers of labour in England, whether those employers be ordin- ary firms or joint-stock companies, even if a moderate amount of capital were forthcoming to assist them. As I have before pointed out, all pursuits other than those which are peculiarly personal or local are rapidly passing into the hands of large individual or corporate employers, and the day is rapidly approach- ing when the small industries of our country, except for particular or local purposes, and under particular circumstances, will merge into and be absorbed by the gigantic concerns everywhere arising. Then education has been supported as an antidote to poverty, ignorance, and idleness. Education in itself is a mighty lever by which the M 170 PKOM POVERTY TO PLENTY; OB, masses of a population may be raised in the scale of social existence. It brings in its train innumerable blessings, but if all the poor of England were highly- educated, and economic laws and circumstances re- mained in their present state, there would be but little improvement in the condition of the multitudes as regards their possession and enjoyment of the means of subsistence. Two great parties in the State advocate respectively the claims of free trade and protection, each holding the belief that their respective system is the best, and that it only needs the absolute domination of their favourite theory to ensure the abolition of poverty and want, and the inauguration of the reign of plenty. I do not here allude to those peculiar organisations such as co-operative bodies, friendly societies, and trade unions, because they are in principle opposed to the foundation and the existence of the orthodox economy, and they are discussed and examined in that portion of this book which treats of the formation of a true science of political or social economy. Upon the questions of free trade and protection the last few years have witnessed a growing change in public opinion. The necessity for some movement to alleviate the present distress and provide against future dangers is so plain that no further delay can be allowed in the interests of public safety. It is an open secret that many of the most strenuous advocates of free trade are THE LABOUR QUESTION SOLVED. 171 beginning to falter in their allegience. The absence of reciprocityj the closing of foreign markets to English manufactures, the competition of cheap labour sustained by British capital and directed by British skill, the influx of country populations into the towns, and the enforced idleness of such great multitudes of people, are results so wholly unexpected by the leaders of the free trade movement as to cause astonishment and dismay. That after forty years of free trade and of national increase of wealth, such results as these should be accomplished is enough to make even John Bright doubtful, and to cause Eichard Oobden to move uneasily in his grave. The results anticipated as possible by Sismondi's translator are, in truth, realised. Many political leaders are openly declaring their belief that a return to the practice of protection is advisable. Some of the leading colonies, notably Victoria and New Zealand, are treading the same path, while both in England, the States, and the colonies the disputes upon the relative merits of protection and free trade, once thought to be finally settled, are now again roused to full activity. Like the smouldering ashes of a fire which, fanned by a sudden wind, bursts up afresh, seizing material half- consumed as well as inflammable matter hitherto untouched, these questions of free trade and protection have burst out in fresh scenes and in all parts of the «arth. Protection and free trade form but a part of the laws M 2 172 PEOM POVERTY TO PLENTY J OK, of exchange, and protection is merely a remnant of /the mercantile system. The theory of protection carried to its ultimate limit would protect not only each nation from its neighbours, but each portion of a kingdom against the other portions, — as, for instance, formerly in the case of England and Ireland; it would protect each city or sea-port as against the rest; would protect each locality, each calling, each profession, and, finally, each family and each indi- vidual against the others. As an ultimate result it would reduce man to a state of individual isolation, altop,ether destructive to civilised society. I do not intend to traverse the field of this conflict, to repeat the numerous instances of protection and monopoly which have in all ages existed, and many of which still do exist among men. My purpose is simply to point out the true and proper position of this question in relation to the whole system of political economy, and to show that protection and free trade are neither of them systems in themselves, but simply portions of the law of exchange, which, again, is but a part of the whole science. While, on the one hand, pro- tection tends to individual isolation and antagonism; on the other, free trade tends in its final exemplifi- cation to erect all the families of men into one common society. It points in the direction and would produce the result of universal interchange and universal commerce. A commerce before which all barriers should be broken down and all restrictions THE LABOUR QUESTION SOLVED. 173 removed, by which the products of all climates, and the industries of every nation should become, as it were, common property ; and all the products of nature which industry could gather and appropriate should becomepractically the common heritage of man. A very slight consideration is suflScient to prove that in a system of distribution which would enable each and all to participate fairly in the surplus wealth of the world, free trade, as a system of exchange, must be more ad- vantageous than protection, which is the negation of exchange; but it is at least doubtful, under the present system of distribution, which leaves nothing to the in- dutrial classes but the wages of bare subsistence, whether it is not more in the interests of the labourers themselves that they should be protected from cheap labour in other lands. I do not, however, wish to enter into the controversy. Neither the one nor the other, nor a system compounded partly of both, will or can per- manently benefit the workmen of Britain and their families. If protection force up wages in one or more industries, labour and capital will soon flock to that industry and bring the wages down to the ordinary level : while if free trade fill a country with the cheap produce of other lands, then the inhabitants of that country, being destitute of employment in their own homes, will not possess the power to purchase the commodities so imported, however cheap. Salvation comes not from either of these principles. The unavoidable tendency of the present system is 174 FKOM POVERTY TO PLENTY; OE^ to aggregate wealth in the hands of the few. Com- petition must reduce wages, increasing knowledge and the widespread adaptation of inventions must increase wealth. Thus the increase of wealth and the falling of wages travel together. No name was ever so sug- gestive of the tendency of modern political economy as that chosen by Mr. Henry George in writing upon this subject, " Progress and Poverty." By parity of reasoning it becomes evident, under present condi- tions, that in exact proportion to the increased rate at which wealth is produced will be its appropriation in the hands of the capitalist and the speculator. A com- parison between the production and distribution of wealth at the commencement of this century and its production and distribution at the present time will suggest reflections upon this branch of the argument of a most serious character. A century ago the English-speaking populations of the world numbered roughly 20,000,000 — twenty millions, possessing property to the value of about two thousand millions (£2,000,000,000). At the present time the English- speaking races number one hundred millions, and the value of their possessions amounts to, at least, £24,000,000,000. Thus population has increased five times, while wealth has increased twelve times. In other words, while at the commencement of the cen- tury the wealth of the English race amounted to £100 per head, the wealth of the same race now amounts to £240 per head. It would not, however, be difficult to THE LABOUR QUESTION SOLVED. 175 show that out of the 100,000,000 of population, at least 30,000,000 possess less than the average of £240, and 60,000,000 possess practically nothing. It is not possible to ascertain with anything like accuracy the proportionate possession of wealth at the end of the eighteenth century, but the information which is obtainable demonstrates that wealth was then much more equally distributed than at present. If we take another comparison, we shall arrive at the same con- clusion as to the inevitable tendency of distri- bution as now existing. Owing to the increased use of machinery and to the great knowledge and de- velopment of invention and of scientific laws, the pro- ductive power of a man's labour is, at least, five times greater now than it was a hundred years since. The amount of human power or horse powei', developed in steam machinery alone is almost incalculable, and is daily increasing. Supposing that the labour of the 20,000,000 of English people was at the former period ' sufficient to provide for their own annual wants, and create superabundant wealth at the rate of £1 per head per annum, the labour of 100,000,000 now would suffice for the maintenance of 500,000,000 of people, and would leave an annual surplus of produced wealth to the value of £500,000,000 sterling. As a matter of fact, in spite of conflicts between labour and capital, with their consequent " lock-outs " and " strikes," in spite of the 5,000,000 of tramps and paupers, notwith- standing the enforced idleness of millions of the working 176 FEOM POVEETY TO PLENTY; OR, classes, and tlie wasted or unproductive labour of mil- lions more, the result anticipated above is practically attained. The wealth of Great Britain and Ireland steadily increases at an n,verage of £160,000,000 per anrium. The value of the annual increased wealth of the United States may be safely put down at £240,000,000, and the increasing wealth of the colonial empire cannot be far short of £70,000,000 per annum. Thus, the 100,000,000 of English- speaking people are fed, clothed, and housed, many of them shamefully enough, and a surplus annual value is created of at least £470,000,000. Nor do I doubt that, with a proper application of labour now in ex- istence, to the forces of nature, food, clothing, and shelter for another 400,000,000 of people could easily be supplied. Yet, amid all this vast increase of wealth and wealth- producing power, the great majority of the English race is poorly fed, scantily clothed, and lodged in dwellings far inferior in comfort to the stables pro- vided for the horses of the wealthy or the kennels for their hounds. It is not the want of production. It is not the want of the means of, and facilities for exchange. The evil lies in the utter absence of a proper system for the distribution of wealth. The resources of a wide-spread education may indefinitely increase that knowledge, which is powerful for the purpose of opening the treasuries of nature more widely, and causing the stream of material production THE LABOUR QUESTION SOLVED. 177 to flow with widening and deepeningj as well as a swifter current. The national wealth may increase beyond calculation, but if there be no alteration in the law and system of distribution, the vast majority of our people will linger out a few years of miserable existence, or rise in a revolution of despair. The second proposed panacea for the congestion of the population and treasure of the United Kingdom is emigration. In reference to this subject, it is advisable to regard the distinction now so constantly drawn between emigration and colonisation. Emigration is the mere departure of people from one land for the purpose of entering into another ; colonisation is the settlement of such emigrants in a colony, either upon the colonial lands or in some certain position as regards the means of obtaining a livelihood and joining in the work of the community. Colonisation bears to emigration the same relation that economic bears to chrematistio in the writings of Aristotle. Or, perhaps, it would be more correct to say that immigration or the mere obtaining of fresh arrivals by a community stands upon the same footing as the mere acquisition of wealth, — or chrema- tistio ; — while colonisation, or the useful absorption of immigrants into the living work of the community, is equivalent to the useful application of acquired wealth, — or economic. Emigration has been, in all ages of the earth's history, the sole method of peaceful relief practised by 178 PEOH rOFEETY TO PLENTY; OE^ over-crowded communities. In this limited sense^ the principle which Mr. Malthus laid down as if it were a new discovery has always been and will be- ever true to the knowledge of mankind. Population does, indeed, in any one spot, if it increase at all, out- run subsistence. A field that would sufiice for the support of half a dozen people would not produce food sufficient for the wants of a hundred, and when that field has been farmed and cultivated to its highest level the average means of subsistence to be obtained from it can be increased no more. But there are other fields and other districts, other territories, other lands and continents. Migration is the only legiti- mate and natural method of disposing of a redundant population. Increase of population will bring with it no terrors or even anxieties to that nation whose leaders are capable of understanding their responsi- bilities and fulfilling their duties. It seems absurd at the close of the nineteenth century to speak to Eng- lish people of the necessity, the expediency, or the propriety of emigration. If the nation had sent np its united prayers to Heaven for a great blessing tO' descend upon it ; if it had, with unabated zeal and fervency, implored the Divine Providence to bestow upon it the power to destroy all war and to scatter plenty and contentment through the nations, Grod Himself, — with all reverence be it said, — could not have given a more favourable answer than that which is heard and seen in the present position of the- THB LABOUR QUESTION SOLVED. 179 British empire. The increase in numbers, as rapid as that which swelled the family of Jacob into the Hebrew nation during the captivity in Egypt; the possession of unoccupied territories as wide and fertile as those portions of the globe now occupied by men ; the dominion of the sea ; the knowledge of science ; freedom unfettered and absolute for good, are the gifts bountifully imparted to us as a nation by the Supreme Disposer of the destinies of men. It is strange, — it may safely be said wonderful, — that these blessings so freely bestowed are the sources of anxiety, of trouble, and of terror to those to whom they have been given. With what dismay must the superior intelligences regard the utter helplessness which we exhibit, and our hopeless inability to avail ourselves of the mighty opportunities presented for our acceptance. The increasing numbers of our people, instead of inspiring us with joy as developing new forces, new power, and new industry, become a source of apprehension and alarm ; boundless terri- tories given to our care and for our enjoyment are looked upon as sources of trouble, expense, and danger ; and our commerce is valued only as it ministers to the luxury and pleasures of one class of the people. Unable to perceive the grandeur of the destiny which God has so plainly marked out for the English race ; too much absorbed in religious and political conflicts to have time or thought, either for the present necessities or the future welfare of the 180 FROM POTEETY TO PLENTY; OE, multitudes and masses of the people, tlie leaders of society seem blind to the great future which is pos- sible, and deaf to the voice which calls them and the nation over which they rule to their final development. The very circumstances which are calculated to inspire with hope are viewed with fear, and the sources of national power and wealth assume the shapo of a spectre which fills the heart with dread. We should regard these matters from such a standpoint as will enable us to see them in their true light and meaning; to behold the adaptation which exists of means to ends ; to recognise in the great armies of the industrious poor, not the materials for riot, bloodshed, and revolution, but the hosts which under proper guidance shall yet subdue and inhabit those great lands beyond the seas which now, silent and desolate, wait but the advance of these great battalions to yield their spoils in a peaceful and holy war. During the last half-century the question of emigration has assumed and still continues to assume a great power and influence over the public mind. There have been two and only two classes of persons in England who have objected to the advance- ment and continuance of a wide and liberal system of emigration. One of these were the employing manufacturers, who, with a selfishness too terrible to characterise in appropriate terms, even in the times of the cotton famine, during the American Civil War, THE LABOtJK QUESTION SOLVED. 181 objected to the starving operatives being assisted to the colonies, because, — as one of their chosen spokesmen, said, — capitalist employers could not afford to lose so many human machines. The men might starve ; they might suffer a thousand deaths in seeing their wives and children pine away and die ; but the class whose god was profits would keep them from the lands of promise and of plenty in the hope of being able yet to draw from their labour the means to gratify an unholy avarice. If any one class of people could draw down upon our nation and our kindred the curse of Heaven it would be the worshippers of Mammon ; for in them is the plague-spot of moral leprosy. It is the custom nowadays to talk much about the curse of drunken- ness. The curse of avarice and selfishness, and of the idolatry of gold (which are all one), is a more tainted sore, a more terrible curse, in and to the community. The second and remaining class opposing emi- gration is found in the leaders of the modern Socialists, who, with a despairing but short-sighted policy, seek to restrain all emigration beyond the narrow seas of Britain. It is difficult to discover, with certainty, the exact scope and aim of Socialists in this course of procedure. Either they must think that in the event of the capital and property of G-reat Britain passing into the hands of the Government there would be enough for the whole people, or they 182 PEOM POVEETY TO PLENTY; OR, must believe that the stoppage of emigration will pro- duce a result favourable to their ideas, and by mere weight of pressure induce a peaceful revo- lution, or that the increase of population and consequent increase of want and misery, will force a revolution by violence. This last is too horrible to be contemplated. It is, indeed, certain that many of the great thinkers of modern days have believed that such a storm is brewing ; but even in fancy to paint London in the hands of a vast mob, mad with hunger, with despair, and with hatred, is to evoke a dream more awful than any picture of real history or hideous phantasy of night. And yet, so blind and infatuated do the rulers of the people seem to be, that they act and speak as if courting an outbreak of the fearful volcano of human passions and miseries seething beneath their feet. The recent refusals by the Imperial Government to aid in the projects of colonisation is but another instance added to many that have gone before, either to prove the indifference of the Government and the Legislature to the sufferings of the people, or their incapacity to rule the great nation of which they are the self-appointed heads. It may be, in this as in many other matters, that time and the pressure of public opinion will gradually force on reforms abso- lutely necessary and conducive to the public welfare. But to one observing these things from a distance it seems to be tempting Providence that Parliament, while THE LABOUE QUESTION SOLYED. 183 it is attempting to rule a portion of the Irish people with a rod of iron, should, at the same time, treat the starving multitudes in England, Scotland, and Wales, not only with neglect, but scarcely disguised contempt. It is to be hoped in the interest of humanity that history will not repeat itself in England. After long mis- government and tyranny, France bad its Eevolution. The sufferings of the slaves in the United States were expiated in an ocean of blood. Let us trust in the mercy of God that the wise counsels of great numbers of the well-to-do classes, the miseries now suffered by the poor, the hope of extended empire through all parts of the earth, and the sense of justice and of manliness which is popularly claimed as the birth-right of Englishmen, may compel the Con- servative and slowly-moving majority in Parliament to take such steps as are absolutely necessary before it be too late. It would, indeed, seem to be a righteous retribution if the Socialists and the Manchester School were left to fight it out together. It would not be the first time in English history that emigration had been stopped, and they who stopped it suffered. It is needless to recapitulate the names of those writers and thinkers who have urged upon the nation the expediency of emigration as a means of removing the surplus population of the country. In relation to the colonies another train of thought suggests itself. These vast landed estates, the value of which is equal to the whole wealth of Great Britain, were acquired 184 I'KOM POVERTY TO PLENTY; OR, by conquest, by occupatioDj or by purchase. What- ever the order of their annexation to the empire, it is clear that all the property the Crown obtained in them became, de facto, the property of the whole British people. By what reasoning, by the exercise of what constitutional right, has the British Parlia- ment given away nearly the whole of these splendid territories, not only to the control, but as the property, of a handful of the English people who happened to be first in the field ? It may seem unpatriotic in me, a colonist of nearly forty years, thus to question the title of the colonists to their public lands, but I dare to doubt both the right and the expediency of the conduct pursued by the Imperial Government in renouncing entirely and for all purposes these magnificent estates, upon which every subject of the realm for centuries to come might have been with God's blessing placed in modest affluence and honest plenty. What have been the results to the empire and the colonists so far ? The British people have given away a dozen kingdoms, and if they wish to colonise any of them they must purchase them afresh from the Colonial Governments. In the colonies, — especially of Australia, — a very sad and disastrous state of things has gradually risen up. The wealthy classes have in every colony obtained the power of legislation. The land laws of each colony have almost invariably been made subservient to the interest of cliques. The natural results are seen. A landed aristocracy, more THE LABOUR QUESTION SOLVED. 185 powerful if possible than that of G-reat Britain, has, in less than a century, — in most cases less than half of that period, — sprung into existence. Banks and other monetary institutions have risen of great wealth and almost supreme power. Political, social, and monetary influences have aided and sustained each other, and areas of fertile lands surrounding most of the available harbours of these great colonies, exceeding many times the acreage of Great Britain, have passed from the English people into the hands of a new, selfish, and ignorant aristocracy. Not only have they thus acquired the choice lands of these nascent empires, they have, as the governing class, borrowed over a hundred and fifty millions of money, which has been mainly expended in giving increased value to these vast estates, while they have not made the interest for the loans a charge upon their lands to any appreciable extent whatever. No doubt, to aid our imperial system of colonisation, large tracts of land in any of the colonies of this group could be obtained upon favourable terms. In New Zealand, ten or twelve millions of acres yet remain in the hands of the Maories, which could easily be procured with their consent, if some portion of the increased value went to them and their children. In another colony, Western Australia, yet a Crown colony, there are at least five hundred millions of acres of land beneath the control of the Government of England. 186 FROM POVEETY TO PLENTY ; OE^ In South Africa, also, there is a wide field for settlement. There can be no doubt that the Imperial Govern- ment, although it has given away, by enactment, to the different colonies the Crown lands within their respective boundaries, could lawfully send its surplus, people to settle on the colonial lands. These lands were the birthright of the whole British people, and the Government and Parliament of England were but the trustees of this vast heritage. As a matter of fact. Parliament, indeed, passed such laws, and they have been given effect to, but Parliament had no such constitutional power ; and, save and except individual rights, which have been acquired by subjects of the Crown in portions of these lands, the present or any future Imperial Government can, and ought, to repeal the former thoughtless and improvident legislation, and re-vest the remaining colonial territories in the whole British people. Whatever questions of expediency may arise, whatever doubt as to the advisability of such a pro- ceeding may occur, the fact remains that the Parlia- ment which gave these boundless estates to handfuls of colonists in different portions of the earth, committed gross breaches of their duty, and were guilty of very grave crimes against the nation. The mere emigrating of the people, — that is, the casting them upon the shores of the colonies tOr- shift for themselves, — would, no doubt, be properly THE LA.BQCE, QUEaTIQN SOLVED. 187 resisted by colonisits as being, directly injurious to the welfare of the community^. But the sending of suitable people with a proper object, and certain destination, accompanied by sufficient capital to enable them; to settle down, in their new homeSj ajid to become self-supporting and producers of wealth, would be hailed by the inhabitants of every colony as a boon. Land as it exists in a state of nature, — that is, without the hand of industry to till it, or the expenditure of human labour to gather its products, — is useless. As soon, however, as the rule of man is extended over it, and it is compelled by natural laws to yield food to man and beast, it becomes useful. It is the one fixed natural agent from which, with certainty and precision, the sustenance of man and most of his comforts are produced year by year.. Upon its, surface he builds his dwelling-place. It is in- dispensable to the continued existence of mankind. In proportion as this natural agent or force is obtain- able and capable of occupation, the necessaries, the comforts, and the luxuries of life are placed within human reach. The ancient tribal ownex-ship and possession of land has, in civilised societies, as we know, passed, away, and individual ownership and possession debars the great mass of the people both from the possibility of occupancy and the power of enjoyment of any portion of the soil. In new and partially uninhabited coun- N 2 188 PEOM POVEETY TO PLENTY; OE, tries, therefore, a state of great prosperity may natu- rally be expected to arise, because, large estates being accessible to all, the means of acquiring wealth become widely distributed among the first settlers. In the early days of a colony, the mere landing of emigrants upon its shores means to them the entrance into a garden of plenty. But when population has increased, when towns have been built, and the available lands within easy distances of the harbours and towns have been appropriated, when the conditions of the parent state have become attached to its children, then the same laws which shut out the labouring class from the possession of the soil in the older country operate in the new. Thus, although by reason of there yet re- maining waste lands to be settled, labour is, to some extent, at a premium as compared with its price in the mother country; yet the conditions of both become so nearly similar as to render the simple de- portation of those whose only means of livelihood is their labour, from one country to another, a matter of but little advantage to the labourers themselves, and detrimental to the interests of their fellows in the new country. This gives a plain and simple reason, as simple as it is unanswerable, for the objections raised by the industrial classes in the colonies to the introduction of further labouring power. But the introduction of labouring power, accom- panied by sufficient means to enable it to reach and THE LABOUR QUESTION SOLVED. 189 occupy land more distant from the centres of popu- lation so as to open new markets for labour and new sources of wealth, is not obnoxious to the feeling or judgment even of the most conservative member of a trade union. Here it must be observed that after the accessible lands of a colony have become private property, and when, by reason of distance or of ex- pense, it becomes difficult and costly to bring rough, or forest, or swampy land into cultivation, other diffi- culties arise. And these are difficulties not inter- posed by man, but by nature. To occupy and utilise such lands as these last-mentioned, concerted and organised labour, backed by capital, is absolutely necessary. In any plan of colonisation, therefore, which may be proposed for colonies such as New Zealand, New South Wales, or South Africa, — and the same reasoning may, perhaps, apply generally to all, — these matters must be borne in mind. To project and carry into operation a successful scheme of colonisation, it is necessary first not to injure, but to benefit, the industrial population at present existing in the proposed locality of settlement. And as the opposition of men must be overcome or avoided, and their aid and sympathy enlisted, so must the diffi- culties presented by nature be fairly met, and all necessary measures taken to ensure her aid. Nor should it be forgotten in any such scheme that a community reducing the wilderness to a fertile 190 FBOM POVBETY TO PLENTY J OE, settlement will yet require the possession and enjoy- ment of other articles than those which they them- selves can draw from nature, which articles they can only obtain by an extended commerce with the outer world. Their flocks and herds may increase and multiply ; their ploughs may turn the soil, and the golden wheat yield its rich abundance ; their fruits may be plentiful; but there will yet remain a thou- sand other things which they will desire, and which they only can obtain bj' giving for them their surplus products in exchange. If a market can be secured by such settlements ; if their beef and mutton, their wool and hides, their butter, and cheese, and fruit can be exchanged for the produce of the loom and of the mill j and commerce provide an easy method by which their wants can be supplied and paid for by the fruits of the earth won by their hands, then nothing is wanting to complete material success and the general comfort of the new community. In olden times individual emigration was scarcely known, and modern writers unanimously express the opinion, not only that emigration is beneficial, but that it is most likely to be successful when carried out on a large scale, and in an organised fashion. The opinion of one of the leading German economists may be taken as an illustration of historic belief on this subject : — " It is sufficiently evident that emigration from an THE LABOTJK QUESTION SOLVED. 191 over-populated country may be attended with good consequences, especially when it takes place in organised bodies." * " Unfortunately, emigration in groups has recently become very rare, whereas during the Middle A.ges it took place preponderatingly, first in armies, and then in communities." t The present position of England is one which, unless the intense pressure of population be relieved by a sound process of emigration, seems likely to result in a tremendous convulsion. The operations of orthodox economy have resulted in the aggre- gation of wealth in the hands of the propertied classes to so vast an extent, and have left the multitudes so much without resources, that even a temporary interruption to the employment of the people or to the supply of food materials from abroad, would inevitably lead to a most serious state of afiairs. No alteration, however complete, of the system of political economy can produce any im- mediate result in the position of the masses. New wealth must be created, new avenues of employment opened, new inducements to industry offered, new alleviations of present suffering must be practised in order to render the public position one of complete safety and the future certainly secure. The immense and unparalleled accumulation of idle * Eoscher, vol. ii., p. 362. f Ibid., note 2. 192 FROM POVEETY TO PLENTY; OE, labour power in England side by side with the use- less accumulation of wealth and capital is a source of danger to the community as a whole. The mouths of the idle must be fedj their bodies must be clothed and sheltered. Thus they become a burden to the community. Nor are these all the inconveniences which arise from the unnatural condition now occupied by some millions of people in the British Islands. As these idle and pauperised armies, bitterly lamenting their own unhappy state, behold the splen- dour and luxury by which they are surrounded, it is but natural that envy, discontent, and hatred should arise within their hearts. The English people are a patient and enduring people. But, however patient and enduring, it is surely madness, and not wisdom, to keep thus caged and starving such vast numbers of human beings, tempted continually to violence and rapine by their own miseries and by the open profusion and luxury they can see in the lives of the propertied classes. But these idle hosts, dangerous and burdensome while within the narrow seas of Britain, would be- come producers of a new and unexampled prosperity if settled on the waste lands of tho colonies. Discontent and sedition would give place to content and loyalty. Instead of being a burden upon the taxpayer, they would provide new markets for English manufactures, new food for English consumers. In place of needing THE LABOUR QUESTION SOLVED. 193. an incessant watch and guard, they would fast become the sentries and outposts of the military forces of the empire. And the wealth and capital now idle and useless in Great Britain would be profitably employed in supporting their labour in distant lands, until they became self-supporting and producers of a new and measureless prosperity. Thoughts such as these, reflections of this character are so simple and unanswerable that it might seem needless to assert them. But facts and experience both show that the English Legislature, the English Government, and English public opinion have yet to be impressed with the very simplest and most ele- mentary truths upon this all-important subject. If a federated empire be really desired, what bond of federation can be so strong as the golden chain of gratitude and affection, or the iron links of common and united interest ? By cruel and oppressive laws England, a hundred years ago, drove from her the great colonies of America. By carelessness and mis- government she has banished from Ireland, from England, and from Scotland, during the last century, millions of her people with anger against her in their hearts. Till within the last eighteen years she treated her colonies with contempt, and plainly intimated that she considered them incumbrances. Now the Imperial temper is reviving. The present greatness and wonder- ful possibilities for the future of the British empire assert a most powerful influence upon public opinion. 194 FEOM POVEETY TO PLENTY. Let another step be taken in the onward march of the history of BnglaAd. Let the armies of labourers now useless in their native land be marched to the unoccupied territories awaiting them^ and let the un- profitable and stored-up capital of the United Kingdotn be co-invested with these great forces of labour power upon the now unutilised forces of Nature so freely given to us as a nation. This will of itself form a federation^ — a federation which no shock of arms can break, and no question of contending interests can weaken. For millions would remain in England whose savings were invested in the colonies, and who would receive payment for such investments by the produce of these new lands. Mil- lions would be made happy and contented, trans- planted to the colonies, who, if kept in enforced idle- ness in England, will be robbed of their manhood and their faith in God. And with this forward step, if the rules of a new and complete system of political economy be introduced so that the vast stores of new wealth to be created may be fairly and equitably distributed, it becomes impossible to place limits to the individual and national benefits which may be obtained, or reforms which may be accom- plished. CHAPTER VII. Political economy as yet not a science — Senior's claim — Kingsley's denial — Natural development of economic practice — Abnor- mal modern ideas concerning it — Wakefield on colonisation — Functions of nature — Necessity for labour — Necessity for capital — Gladstone, Fawcett, and Cairns on unequal distribu- tion — Two cardinal errors in orthodox system — First, positive, selfishness as only motive power ; second, negative — Utter ignorance of economists as to surplus or accumulated wealth, and the laws of its distribution — Erroneous canon of distribu- tion — The profits of capital — Senior and Mill examined — Their errors on this point — No distribution of surplus wealth to industrial class ; proportional increase of wealth and popu- lation since 1800 — Labour gets no share of surplus wealth — SUence of modern economists on distribution — Guyot. HE history of human teachings in all departments of knowledge has been characterised by a strange development of confident assumption revealed in every age^ and every school, that each particular theory advanced was perfect and complete. The science of political economy can claim no exception from this almost universal rale. It is ludicrous to read the dissertations of men of great culture upon this subject, and to find the old claim once more asserted in regatjd to political economy. 196 FROM POVERTY TO PLENTY J OE, that as a science it is complete, that its axioms are well known, and that its principles are invariable in their action, and certain in their results. Mr. Nassau Senior thus writes concerning it : — " There is a science of production definite, exact, the axioms of which are as universal and demonstrable as those of astronomy, the practical rules of which are as simple and familar as those of arithmetic." To this very open and confident statement, it is perhaps sufficient to reply that at present there is no such thing known as a science of political economy. That which goes by the name is but a mass of undigested facts, and disjointed reasonings upon questions imperfectly understood. It is aimless in its purposes, and inoperative, except for evil in its conduct. " Indeed, I am inclined to deny to political economy, as yet, the name of a science. It is, as yet, merely in its analytic stage, explaining the causes of phenomena, which already exist. To be a true science it must pass on into the synthetic stage, and learn how, by using the laws which it has discovered, and counteracting them by others when necessary, to produce new forms of society. As yet political economy has produced nothing. It has merely said ' Laissess faire.' .... For it is my belief that not self-interest, but self-sacrifice is the only law upon which human society can be grounded with any hope of prosperity and permanency. That self- THE LABOUE QUESTION SOLVED. 197 interest is a law of nature I know well. That it ought to be root-law of human society, I deny, unless society is to sink down again to the Roman Empire and a cage of wild beasts. I shall resist it as I do any other snare of the devil, for if I once believe it I must carry it out."* What Kingsley thus wrote is, indeed, essentially true, and although neither he nor other men of his school, Maurice, Hughes, Ludlow, and Bullar, or men like Mazzini, clearly saw how the evil teachings of orthodox political economy were to be overcome, they recognised and taught very strenuously that, instead of self-interest there must be self-sacrifice, instead of selfishness there must be sympathy, and instead of isolation and individual strife there must be association and co-operation before any workable scheme of social economy could be propounded. They confessed that they could not yet see how this was to be accomplished, and that they themselves failed in the attempts they made. And so, in the same letter from which the above quotation is made, Kingsley says : — " Now, as for any schemes of Maurice's or mine, it is a slight matter whether they have failed or not. But this I say, because I believe that the failure of a hundred schemes would not alter my convictions, that they are attempts in the right directiou, and I shall * Charles Kingsley, " Letters and Memories," page 209. 198 TEOM POVERTY TO PLENTY; OE, die in Hope, not having received the promises, but beholding them afar off, and confessing myself a stranger and a pilgrim in a world of Laisser faire" The criticisms of the great author of Hypatia are just. Political economy has produced nothing. In its three stages through the mercantile system, the physiocratic system,, and the modern orthodox system, it has explained or attempted to explain as Kingsley expressed it, "phenomena which already exist." But even this has been done with great uncertainty, and very often erroneously. The state of the cilivised world from every point of view tells us unmistakably that the orthodox science has run its course, and that, unless some new and more com- plete system be adopted, great trouble will occur. Nor is the reason for the successive failures far to seek. Since the creation man had gone on in simple fashion practising a rude, but more or less correct, form of economy, without knowing its laws, as he spoke language correctly without knowing the rules of grammar. Then when the science was reduced, or it was attempted to reduce it, to form and shape, the purpose was only partially accom- plished. Money or capital is, no doubt, one of the factors of production, but it is only one. So when Quesnay and Tiirgot proclaimed that physical nature was the sole source of wealth, they also erred by ascribing to a second factor the importance of all combined. So, too, the orthodox political eco- THE LABOUR QUESTION SOLVED. 199 nomists, greatly superior as they are to their fore- runners in knowledge, are still equally in error, in placing the sole source of wealth in labour. Capital, physical nature? and labour, are each and all indespensable to production of every sort. Each by itself is helpless, combined they produce all things. It is strange that this simple truth has not yet been admitted as the true foundation of political economy. The direct statement of Adam Smith and his followers that labour is the source of all wealth, gives to Socialism its strongest argument and most powerful reasons. It is asked, and asked with force, " If all wealth proceeds from labour, why does not the labouring class receive and enjoy it ? " One strange fact in this aspect is that the necessity for the combination of land, labour, and capital is over and over again asserted in the " Wealth of Nations,^' and in every follower of Adam Smith, while yet they generally adhere to the principle that labour is the source of all wealth. If we consider the common practice of men, we shall be able stiU further to find from it the proper system of economic science. Man lives upon the earth. He is doomed to toil. In the sweat of his brow he shall eat bread. From the natural elements, land, air, and water, directly or indirectly, he draws his food, his clothing, and his shelter. The air supplies the gases necessary for life ; land and water yield to his labour the necessaries of existence. He 200 PROM POVBETT TO PLENTY; OR, subdues the earth and has dominion over it. Fish from the sea, cattle and sheep from the pastures, fruit, cereals, and roots from the earth, — these are the rewards of his toil. But food is not alone suflBcient for his wa,nts. His body must be clothed to protect it from heat and cold. First skins of beasts and the bark of trees afford rude apparel. Then he manufactures garments from the products afforded to his industry by nature. For shelter he first avails himself of caves, but soon erects a rude form of ■dwelling. At length dressed timber, stone, or brick is called into requisition, and he is comfortably housed. Thus in all primitive life, agricultural and pastoral pursuits, aided by the rudest forms of adaptation and manufacture, suffice for the support and even the comparative comfort of life. Let it be noticed also that the produce of this agricultural and pastoral employment, and this crude and per- sonal manufacture, are for the purpose of personal existence and enjoyment, and not for trade and commerce. It is of the last importance that this should be borne in mind, because all men seem now to regard the pursuit of these primary employments with an eye solely to trade. The questions now are not : Is the land good that we may grow food of all sorts ? Is timber convenient that we may build ? Is it possible that we can make and sustain comfortable homes upon the land we go to occupy, and rear our families in honest and contented comfort ? On the THE LABOUE QUESTION SOLVED. 201 contraryj ttey ask : Where are our markets ? What are the means of transmitting our produce to those markets ? How shall we be able to raise products with which the markets are not overstocked ? So completely has modern philosophy become imbued with this idea that the proposals made by Mr. Wakefield for colonisation, which practically compelled a number of people to live in towns, in order that they might provide a market for settlers in the country, is thus spoken of by John Stuart Mill: — " The application of this truth by Mr. Wake- field to the theory of colonisation has excited much attention, and is doubtless destined to excite much more. It is one of those great practical discoveries which, once made, appear so obvious that the merit •of making them seems less than it is." The planting ©f people side by side over lai'ge areas might " assure to those families a rude abundance of mere neces- saries," but must be " unfavourable to great pro- duction or rapid growth," — that is, does not seek so much to create commerce as happy homes blessed with a " rude abundance." In truth, the covetousness and selfishness of modem social science sacrifices even the sacred peace and love of home, with all its holy affections, to the desire for wealth. The first and normal aim in the occupation of lands is to grow food, to provide shelter, and obtain the materials from which clothing can be made. 202 FEOM POVBETT TO PLENTY; OE^ TJpon this natural foundation a complete and happy structure may be reared. ManufactureSj trade, and commerce will follow, properly to increase the comforts of men. These should not be masters compelling a miserable servi- tude from humanity ; they should be servants minis- tering to the wants and exchanging the products of all nations. First, let there be the supply of all home wants, so far as soil and cultivation will afford them ; then as large and wide a production of the most valuable and useful commodities as possible for com- merce, so that the surplus may be changed for the manufactures and productions of other lands and races with equal benefit to all. Selfishness is not only, as we have seen, the rule of action as a fact, but, what is much worse, it is endorsed as right and proper. In this way, the economical gospel of selfishness and covetousness has been always preached, and the influence has been reflected from theory to practice, and from practice to theory, until trade and commerce, and all pursuits having for their object the production and exchange of natural wealth have been demoralised and corrupted. Everything has been sacrificed to acquiring wealth. All the better instincts and hopes of humanity have been displaced by this desire. The great end of life is to amass. The World worships at the shrine of Riches. Even the churches have been carried away by the flood. Riches are righteousness ; poverty is sin. Production, THE LABOUR QUESTION SOLVED. 203 manufacture^ trade^ and commerce, as a means of a quiet and contented life, are unthought of ; but they are prized and valued as they bring riches and posi- tion. To all conditions they are necessary, but we err when we allow them to become our rulers. The earth contains its treasures of minerals and metals, it will yield also with returning seasons perennial harvests. And not only has the Creator given such great abundance of valuable things and such a diversified array of productions, but he has also endowed the dull, insensate soil with powers of reproduction wonderful beyond comprehension, as- they are unerring in operation and beneficent. He- has also created the animal organisms which, by the order of nature reproducing their kind, afford to men almost illimitable sources of food, convenience, and comfort. In addition to all these, the same mind has ordained and the same hand created innumerable laws in nature which, being gradually discovered and conquered by man, are used to minister to his wants and to increase his pleasures. No system of philo- sophy, truly so called, can prove that these powers and treasures of nature as such can by right be monopolised by any individuals, by any classes, or by any sections of the human family. They belong to the whole race of man, for they are the common heritage of all. When Mr. Henry George therefore traces a greater part of the "ills which flesh is heir to " to the pre- o 2 204 FEOM POVEKTY TO PLENTY J OE, sent system and extent of private ownership and exclusive possession of great areas of land, he is simply using an argument drawn from nature. He is asserting a fundamental truth in human economy. But he uses this truth inexpediently, and without due regard to the truths which surround it, and of which it forms a part. It is, indeed, a most important part, but it is still a part only. Not merely as regards land for the purpose of agriculture, or as the home of human communities, as in great cities, but as to land, the repository of all the treasures hidden in its bosom, ■the same truth holds good. It holds equally with re- lation to the cattle, sheep, birds, and beasts, which minister to our wants, and which increase and multiply ■by the laws and powers of nature. It holds equally in •the realms of natural law over all those wonderful ■discoveries and inventions by which labour is economised, the power of production is indefinitely multiplied, and wealth increased beyond the limits of -calculation. It holds equally in those common bounties of nature, air, light, and water, which ■encircle and encompass the earth, illimitable in quantity, immeasurable in extent, perpetual in existence. All these are the common property of mankind. By reason of its limitation in space, and difference in climate and fertility, there is, indeed, a wide distinction between land, and the other elements and gifts of nature. The method of enjoyment, and the mode of usage THE LABOUR QUESTION SOLVED. 205 are different in the utilisation of land, and the enjoy- ment of the air and sunlight, or the result of scientific discovery and invention ; but the one universal rule holds good in all, that the gifts, the powers, and the capacities of nature are the common heritage of man- kind. Speaking exactly, the only thing which one man can claim as against the whole world are his own personal share of produced wealth, which actually results from his own unaided labour, or which comes to him as the gift of some other being, and over which that other being had the like property and power of control. But how are all to share in the enjoyment of nature's gifts ? That is the question ! The system of political economy, which gives a rea- sonable and practicable answer to this, even though it be but approximately complete, will by the fact prove itself true and worthy. At the present time, more than in other ages, the blessings and fruits of nature are monopolised by restricted numbers, while the happiness arising from their enjoyment is denied to those who form by far the larger proportion of mankind. While nature is the real source of all wealth, labour is always necessary to realise it, and to reduce it into human possession. The ore would remain hidden in the mine, the earth would be untilled and waste, the laws by which we are sur- rounded would never be invoked, nor turned into forces and instruments of production were it not for the active brains and busy hands of men. Thus 206 FEOM POVERTY TO PLENTY; OE, nature is the source from whicli wealth is derived, and labour is the agent by which it is produced, and made available. Here we are met by another truth, at once simple and important. So simple as to be self-evident, so important as to contain the greatest measure of earthly happiness. This is the right of every man to his own labour, and to all that it will produce, or its equivalent value. The old question again proposed itself. How shall this natural right of man be obtained ? To this query a true system of political economy will find an answer, at least, practi- cally correct. Human labour, unarmed with tools and machinery, and unsupported by food and raiment, would be powerless to avail itself of the treasures which nature so freely offers. Even the rudest savage has his spear or blowpipe, fishing-hook, axe or club of wood or stone, canoe, or yam-stick. These are his capital. 'Civilised man possesses other forms of capital, — tools, implements, beasts of burden, machinery, shipping, railways, stores of food and clothing, and last, but most useful of all, because it is a medium of exchange and commands all, — money, which now means gold and silver, but which will ultimately mean public credit. As at present taught, economic science retains the worst features of the two former systems, and has joined them with a code of evil principles. The reign of capital, which formed the mercantile system, still obtains. The acknowledgment and appropriation of TH?: LAI30UB QUESTION SOLVED. 207 the value of landj and other natural forces on which the physiocratic philosophy-was based, yet continues, while upon the doctrine of the supremacy of labour has been reared, strangely and as if in mockery, the selfish indi- vidual competitive principles which, joined to the evils o" the other systems, places labour beneath the heel of capital, and fills the earth with suffering and wrong. The actual distribution at present obtaining gives this world's goods into the possession of classes already possessing property. This fact is notorious. Deplored by every right-minded person and wondered at by all, the power which controls the destination of the accumulated wealth of the nations seems to be completely hidden. While men like Mr. Gladstone and the late Professor Fawcett are astonished and saddened by this result of modern civilisation, they are unable to explain the causes of such an evil, or to offer any remedy whatever for so disastrous a state of things. It is evident that the subject itself is not understood. For while our greatest thinkers perceive that political economy directs all the increasing wealth of a country into the possession of the capitalist class, they can only express their surprise and regret at this unhappy result. Mr. Gladstone, forty years ago, gave utterance to the following words : — " It is one of the sad sides of the present social order in our land that the steady increase of wealth of the upper classes and the accu- mulation of capital should be attended with a diminu- 208 FROM POVERTY TO PLENTY; OE, tion in the people's power of consumption, and with a larger amount of privation and suffering among the poor." When twenty years had passed, the same great statesman, speaking in the same House (the House of Commons) said: — " From the year 1842 to 1853, the ' receipts from the income tax increased 6 per cent, in I England ; and from 1853 to 1861, 20 per cent. It is jan astonishing fact, but it is nevertheless true, that this prodigious increase of wealth benefited solely tho well-to-do classes." Nearly ten years afterwards, in 1872, the late Henry Fawcett and his wife, Millicent Garrett Fawcett, in their " Essays and Lectures on Social and Political Subjects," speak thus : — " Production has increased beyond the most sanguine hopes, and yet the day when the workman shall obtain a large share of this increase seems as far distant as ever, and in his miser- able abode the struggle against want and misery is as hard as it ever was. The result of this is to create a feeling of profound hostility to the fundamental prin- ciples on which society is based."* Professor Cairns says : — " The conclusion to which I am brought is this : unequal as is the distribution of wealth already in this country, the tendency of in- dustrial progress, on the supposition that the present separation between individual classes is maintained, is towards an inequality greater still." It is worse than useless to deny or hide from our- * Page 12. THE LABOCE QUESTION SOLVED. 209 selves the fact that our prevailing system has failed utterly, and without hope of recovery. The laws which govern exchange are variable in their application and force, and liable to change with the changing methods and facilities of commerce. The laws of value, currency, of demand and supply, of the cost of production, and of the value of money are not, as it seems to me, of as great importance as those laws which govern more immediately the distri- bution of wealth. The different theories and argu- ments advanced are indeed of great interest, but they do not affect the comfort of the industrial classes in any sense so deeply as the other laws of which I have spoken. We have now to consider the two greatest errors of all ; the first being an error of commission, the other one of omission. The first is the placing of selfishness as the sole and natural foundation of all human actions in economic practice. The second is the omission of the whole surplus or accumulated wealth of a com- munity from the scope and contemplation of the argument together with the totally erroneous canon or formula of distribution propounded by all writers. Regarding for a moment the first of these cardinal errors, it is evident that the basis of selfishness is immoral and unjust. I have already alluded to the contrast presented in the writings of Adam Smith, between the motive power set up in his "Theory of Moral Sentiments," and that alleged in the "Wealth of Nations." It is matter for surprise that so profound 210 I'EOM POVERTY TO PLENTY; OEj a thinker and so good a man, should not have per- ceived the inevitable tendency of practice based upon a precept so atheistic as selfishness. Unhappily the practice amongst men in the acquisition and enjoy- ment of wealth had ever been, generally speaking, selfish. But to advance in theory as correct that which had obtained in practice, simply because it had so obtained, was un philosophical. By parity of reason- ing, any vices, any tyranny, any superstition, or criminal indulgence might not only be justified, but approved and enforced as natural and proper if only it could be proved to have become customary through a long period of time. The second vital error, — that of the omission of a proper scheme for the distribution of wealth, — is the most remarkable fact accompanying the whole in- struction upon this subject. In no one of the attacks made upon the present political economy, in that economy itself, nor in all combined, can there be found a plan or system con- taining the laws which either do or ought to govern the distribution of wealth. When the question of distribution is approached, uncertainties, confusion of terms, and ignorance all appear. During the last eighty years the wealth of Great Britain has increased four times more than it had done during the eighteen centuries of the Christian era. What the growth and aggregation of national wealth will amount to during the next three-quarters THE LABOUR QUESTION SOLVED. 211 of a century it is impossible to anticipate. The boundless tei-ritories of the empire lying idle^ nnvexed by plough or spade ; great harbours inviting a mighty commerce ; a constant influx and absorption of people of other races in the Anglo-Saxon colonies, added to the ever growing increase of our own people ; the daily discovery and invention of labour-saving implements; all tend to a wonderful condition of national prosperity. One problem, that of a fair dis- tribution, yet remains to be solved. To understand clearly the position and arguments advanced by different writers upon the laws which govern distribution, it is necessary to examine the words and terms which they employ in setting out and expounding the law itself. All wealth produced is the joint product of the three co-factors, — land, labour, and capital; and economists universally agree that such wealth, when produced, is distributed amongst the owners of these respective factors. The process or mode of distribution they state as follows : — To the owner of land, rent ; To the owner of labour, wages ; To the owner of capital, interest or profits. Two of these terms are comparatively easy and simple in their meaning. The term " wages " ex- plains itself in daily life as that return which is given for the labour of men. The term ''rent" also 212 FROM POVEETY TO PLENTY; OE, conveys a plain meaning to the ordinary mind. It is the reward given to the owner of land for the use of that land by another person. But the term " profits " is so ambiguous, and can be used in so many senses, as to be altogether inadequate to convey any clear or defined notion either to th& orninary common sense of mankind or to the scientific mind of the student. So greatly has the difiiculty of the meaning and application of this term pressed, even upon those who adhered most religiously to its use, that they have attempted to define its meaning more closely than by the mere use of the name itself. By most of the great writers the term " profits," used to denote the distributed reward for the use of capital, is made up by the combination of three elements : (1) interest ; (2) compensation for, or insurance against, risk ; (3) the wages of superintendence. This definition of the term "profits" is plainly erroneous. One of its sub-terms or elements, wages of superintendence, is clearly part of the wages of labour ; for all labour, — whether it be of the mind or of the hand ; whether it be the advice of the physician or of the lawyer, the toil of the miner or the plough- man, the work of the bank manager or errand boy, — is equal in this, that it is labour, and as such receives its payment in wages. The wages of superintendence, therefore, are part of the wages paid to labour, and no wages can be a portion of the profits paid to capital. The capitalist who superintends great works may THE LABOUR QUESTION SOLVED. 213 receive it, but it is the reward of liis labour, not of his capital. Compensation for risk, also, is improperly included as an element of profit accruing to the capitalist for the use of his capital. "What compensation for risk does the person receive who invests his money upon mortgage, who purchases Three per Cent. Consols, who buys a farm estimated to return four per cent. ? A risky investment, as the discounting of bills or money-lending, may be cited as an illustration of the compensation for risk, but this is no more appli- cable to capital than to labour. If a man be em- ployed upon a hazardous undertaking or in a dangerous calling, he expects to receive higher wages. This argument, therefore, only proves that compensation for risk enters into the determination of the rate of wages charged by the labourer equally with the rate of interest charged by the capitalist for hazardous investments. So, too, rent is increased if property is to be used for dangerous or offensive pur- poses. If in the phrase " compensation for risk " it is intended to include an insurance against the loss of capital in commercial or other transactions, then it is clear that wages and rent should both include such an insurance against loss, for the labourer may perform his work and never receive payment ; his employer may fail, or be dishonest and refuse or, be unable to pay ; so the landlord may be unable to obtain his rent, illustrations of which position can be seen on 214 FEOM POVERTY TO PLENTY; OK^ every hand in the United Kingdom at the present moment. But who talks of compensation for risk forming an element in wages or in rent ? The term " profits/' as applied to the return for the use of capital, is entirely erroneous and misleading. The difficulties of its application were seen, though not remarked upon, by Mr. Buckle in his " History of Civilisation," where, in the first volume, chapter ii., he speaks repeatedly of the distribution of wealth into rent, wages, interest, and profits. This theory of distribution mentioned by Buckle is nearer the truth than any other classification yet made, though neither he nor any other writer seems to have appre- hended its importance. It is, however, quoted by Henry George (" Progress and Poverty," book iii., chapter i. — "The Laws of Distribution") as an example of the inextricable confusion into which [the principal economists have drifted in their jumbling of the terms of profits and interest. Yet Buckle is undoubtedly right, and Henry George is wrong. The American writer, after clearly and logically pointing out the difference between profits and interest, and proving that the true and actual return for the use of capital, as such, is interest, and interest alone, immediately thereupon falls into a worse error than that which had deceived the very writers whom he so justly criticised. In avoiding Scylla he falls upon Oharybdis. Having completed THE LABOUE QUESTION SOLVED, -215 the idea that profits comprising all these three elements is the true return for the use of capital, and having established his own proposition that the true reward of that one factor of production is interest only, he then states that all wealth produced is distributed among the three factors of production, thus : — To the owners of land, rent ; to the owners of labour, wages ; to the owners of capital, interest ; his theory therefore is that all wealth produced in a community is distributed to the different producing powers as rent, wages, and interest, and in this opinion he by no means stands alone. Reflection will show not only that Henry George is wrong, but that this portion of the field of enquiry has not as yet been traversed by any writers. In what does wealth consist ? What does it contain and embrace ? What are the sources whence it flows ' From what causes does it arise ? And what are the canons and laws of its distribution when once created ? If all the wages of every class were spent without the saving of a pound ; if landlords were to expend every shilling of the rentals they receive, and the capitalist to disburse every penny of interest coming to them, still year by year the accumulated wealth of a community would expand and increase. Hamlets and villages would arise in solitary places ; villages would grow into towns; towns into cities ; manufac- tories would spring up, commerce would spread, flocks and herds would increase, navies would grow, 216 PROM POVEETY TO PLENTY j OH, great expanses of virgin land would be placed under tillage, — in a wordj wealth would accumulate. And this wealthj the surplus accumulated wealth of the community, would be produced from the sources of nature by the brain and the hand of labour, aided and sustained by capital. Rent, wages, and interest would be the charges necessary to produce this wealth; and they would be used and consumed in such production. They are therefore the cost of pro- duction. This is recognised by some of the German writers, although they neither see the importance of the truth asserted, nor its direct bearing upon the law of distribution. Roscher clearly points out that the cost of production includes rent, wages, interest, and taxes. "An individual who pays taxes to his Government, and who has rented land and employed labour and capital to engage in production, must indeed, besides the capital he has used in such production, call all his outlay and interest, rent, wages, and taxes by the name of cost of production, since, unless they all come back to him in the price of the commodity, the entire enterprise can only injure him.'"* I The Germans also, beyond rent, wages, and interest, Iplace a fourth part of distribution, namely the " Profit I of the undertaker."! Not, indeed, of that gloomy personage who carries us to our final earthly estate, * Eoscher, "Political Economy," 13tl: ed., translated by Lalor, vol. i., page 316. t Eoscher, vol. ii.rpage 145. THE LABOUE QUESTION SOLVED. 217 measui'ing six feet by two, but the individual who enters into any undertaking whatever by which profit of a material nature can be gained. But these differences, although they thow thewider views and more liberal ideas of the German writers as compared with our own, which indeed characterise many of the French also, have in no degree illumi- nated nor expounded the true law of distribution. In a prosperous community wealth is ever growing. Thus in Great Britain the national wealth increased between the years 1865 and 1875 by the enormous extent of £2,400,000,000 ; this surplus remained after payment of the cost of production, wages, rent, and interest year by year. Wages were con- sumed, rent and interest were used by their owners, and yet this vast addition had been made to the national wealth. A few millions, no doubt, had been saved by the working classes out of their wages, say £50,000,000, which, according to Mulhall, is excessive. Let us suppose another £150,000,000 representing the savings made by the recipients of rent and the re- ceivers of interest : this would make a total sum remaining during the ten years from rent, wages, and interest of £200,000,000. Whence, then, has come the other £2,200,000,000, and to whom has that gigantic mass of wealth been distributed? A few short enquiries will give the answer, and show how utterly untenable is the position main- tained by the economists, that all the wealth produced 218 FEOM POVERTY TO PLENTY; OE^ in a community is distributed in rentj wages, and interest. I Lave before seen that it is capital which supports and assists labour while producing wealth, and which remunerates the labourer for his toil. Mr. Henry George attempts to refute this position, which, on the other hand, is supported by the great mass of writers, but his attempt is by no means successful. For although labour, indeed, impresses its value upon the objects upon which it is being expended during the time of such expenditure, yet the capitalist has to reward the labourer by imparting to him some wealth already in existence, — that is, capital, — and has to wait until the crop is reaped, or the house or the ship is built before he can obtain from the object upon which such labour is bestowed a return of his investment. Even supposing that labour be paid for by a portion of its own produce, that portion so used becomes, de facto, capital. Eent, wages, and interest, therefore, are the cost of production. Other Conti- nental writers as well as Roscher expressly lay down this principle, and so inferentially do many of the English writers. The cost of production being de- frayed, the produced wealth remains. And it is this produced wealth, this surplus or accumulated wealth, which forms the continually growing and expanding national property. This comprises all goods, pro- perties, and values not expended in the cost of pro- duction, and remaining after the cost of production is defrayed. The laboue question solved. 219 This wealth is not distributed as alleged by the -economists, but it is distributed only among the owners of capital and land, — that is, the propertied classes. This is evident from the following considerations : — The owners of labour, the wage-earning class, receiv- ing wages as the means of subsistence, do not, as such, receive one shilling of surplus or accumulated wealth. That is to say, that of the £2,200,000,000 added to the national wealth of Great Britain during the ten years from 1865 to 1875, the industrial classes, as such, did not receive sixpence. Contradictory and indefinite as are the meanings generally attached to technical terms in this science, they are as yet sufficiently positive and clear to enable us to maintain for some purposes an argument upon the general scope of their meaning. Thus wealth is the sum of material production from nature by labour, and capital is that portion of wealth which is devoted to reproductive purposes and generally consumed in such reproduction of wealth. Rent, wages, and inte- rest are the price paid for the use of land, labour, and capital, when those three factors are together used to produce wealth. Considered from any point of view, whether from that of logic or that of experience, the accepted theory of distribution is incorrect. Let us take first the logical argument. A portion p 2 220 PEOlf POVERTY TO PLENT? j OB, of wealtli now existing is devoted to, and used for, the production of fresh wealth. This portion, there- fore, becomes, according to the terms of the argument, capital, because it is. devoted to reproductive pur- poses. This capital is consumed in the payment of rent, wages, and interest, and its result is the pro- duction of fresh wealth. The wealth produced is new; the crop from the seed, the fruit from the tree, the increase of flocks and herds, houses which are built, ships which are constructed. That portion of the former wealth which has been consumed to produce this new wealth was capital ex- pended. It was, in fact, the cost of production, and in no sense whatever can it be held to be that which is finally produced. Even in cases where the wages of labour and the payment for the use of capital are to be paid out of the proceeds, the balance which remains after such payment is distinct and separate from the portion so used, which in itself becomes capital. The wealth produced is only distributed in the shape of rent, wages, and interest if it become in its turn devoted to the production of new and fresh wealth. The produced wealth is not, therefore, nor is any part of it, distributed in the shape of rent, wages, and linterest unless it be converted into capital and used for purposes of reproduction. Let us turn now to the argument from experience. I The wages of the labourers, the rent of land, the inte- rest of capital being paid, the resulting wealth, a new THE LABOUR QUESTION SOLVED. 221 integral part of tlie national possessions, is the product. At the end of the year, when the harvests have been gathered, the construction of houses and ships finished, none of the wealth then existing is distributed in the shape and under the forms alleged. It belongs to its owners, it is distributed amongst them as the result of their expenditure, but not in any way is it distri- buted in rent, wages, and interest. Supposing a new year to commence, a portion of it may, indeed, be devoted to fresh production, which por- tion will become capital, and thus be distributed in pay- ment of rent, wages, and interest for fresh production. In short, the payments made are the capital neces- sarily expended to produce wealth, and by the neces- sity of the case never do and never can include any portion of the surplus wealth which is produced by it iind added to the accumulated possessions of the com- munity. Portions of rent may be saved by the owners of land ; portions of wages may be saved by the owners of labour ; portions of interest may be saved by the owners of capital ; but when first paid to them for the use of their respective factors they were parts of capital expended for the purpose of reproduction, and not wealth or produce distributed as such. The unearned increment of land, the warehouses and manufactories of cities, the great ships which carry the commerce of the world to and fro, the gold and silver which are produced from the mine, the 222 fEOM POVEETT TO TLENTY ; OE, wilderness turned into fruitful fields^ golden with their yellow harvests or nourishing upon their green sur- face innumerable flocks and herds, the very clothes we wear, the food we eat, the furniture and appli- ances of our dwellings, and the books within our libraries are neither rent, nor wages, nor interest, but have been made, or improved, or tended by labour for which wages were given, exerted upon land which yielded its owner a rental, which labour was sustained and assisted by capital, for which yearly interest was paid. It is in the unequal distribution or non-distri- bution of this surplus or accumulated wealth that the evil exists. Did the vast sum of wealth amassed during the last fifty years arise from savings in rent, interest, and wages ? Not at all. Wages were, no doubt, higher ; interest, if anything, has been on a lower scale ; rent, at any rate till a recent period, produced a greater result from the same given quantity of land. But so far from growing rent having given this increasing wealth to England, it was the great prosperity of the United Kingdom which caused all rents to ascend. What are the facts ? The giant strides of manufacturing industry, the wonderful expansion of commerce, the railway and telegraph systems, the immense fortunes arising from patents, or from gold, silver, and other mines, the enormous increase in the value of town and city pro- perties, both by reason of the unearned increment and on account of numerous improvements, the growth and THE LABOUK QUESTION SOLVED. 223 consoliclation of the colonial empii'e, the flocks and herdSj the ships and houses, trade and speculation, the unexampled profusion and mass of all sorts of pro- ductions, the adaptation of science and of art to the wants of men; these, and other causes of a like nature, but of subsidiary importance, have gathered together and stored away for the enjoyment of the capitalist class wealth such as no nation in the history of the world ever dreamed of. Not by conquest, not by the spoils of war, not by rapine or treachery, nor by exaction, have these wonderful results been gained, but by peaceful industry, by wisely-conducted com- merce, by the subjugation of the laws and forces of nature beneath the hand of man. Accompanying this unparalleled progress, and prin- cipally accounting for its wide development, has been the equally unparalleled progress of the English race and tongue. A century ago, when Adam Smith went down to his last rest, the English-speaking peoples did not number 20,000,000; to-day at least 100,000,000 of people possess this language as their national tongue. The trade of the Australasian colonies, which, when her Majesty came to the throne, was practically nothing, now exceeds in the aggregate value of its imports and exports the whole sea-going commerce of the United Kingdom of that day. Production and the power of production have literally distanced imgination, but the distribution of wealth is more unfair, more unrigh- teous, and more marked in its inequality, than ever 224 FEOM POVERTY TO PLENTY J OK, before ; and this arises from that pregnant cause of all evil consequences in the material and social con- dition of the people, the selfish system of our ruling political economy, and its ignorance of the laws of distribution. In the final process of the science no discovery has ever been attempted. The distribution of wealth is a terra incognita. Its geography is unknown. No footfall has echoed upon its shores. No eye has perceived its secrets. No tongue has revealed its laws. Yet here lie concealed the treasures of happi- ness, of contentment, aud of prosperity. In this shadowy territory, so close to us that we are, genera- tion after generation, coasting its strand, are mines more precious than those of Australia or Golconda, of California or New Zealand, of Kimberley or Ophir. In the silent recesses of this country will be found .'recorded those laws of God concerning the distribu- tion of His gifts, which will produce universal happi- ness, drive want from the homes and the lives of men, weaken selfishness, aud diminish crime. There is the Eldorado which the old sea kings sought amid storm and battle upon the coast of the Spanish Main, — the philosopher's stone is there. So little do political economy and its teachers know about the distribution of wealth, that the latest French writer, M. Yves Guyot ("Principles of Social Economy." English edition, London, 1884), alludes only indirectly to that portion of the subject in one brief paragraph as fol- THE LABOUR QUESTION SOLVED. 225 lows : — " When seeking for the proper method of ievying taxation." * Now, according to Adam Smith, the sources of income are three : profits, rent, and wages. How are they to be reached ? By analysing every income in detail. In order to reach the general income, we must ascertain from every one what his private one is. Yet that book is a mine of wealth. It contains com- pendious statements of figures, elaborate diagrams, longand logical arguments, and astonishingnumbers of references, quotations, and contradictions from other authors. M. Guyot's definitions are more minute, more subtle, and in the main more correct than those of any other writer. Yet his exposition of social economy is dumb upon the one all-important subject, the laws of distribution. The only approach as yet made upon any extended scale to distribute wealth is that practised by the co-operative bodies, and even they are not aware that they are attempting, in a rude and irregular fashion, to solve the great problem of modern days, the discovery of the third branch of true political economy. To explain the difficulties which have always pre- sented themselves to the minds of writers upon this ■division of economic study, the teachers of the science have been sorely troubled. As I have before alluded to the statement made by Senior and endorsed by John Stuart Mill, that "profits are the reward of * Page 280. 226 FROM POVERTY TO PLENTY; OR, abstinence/' I will proceed to examine that theory and the arguments by which it is explained and buttressed by Mr. Mill. Writing of the distribution of wealth, Mr. Mill treats fully of the wages of labour and the rent of land, giving a somewhat exhaustive treatise upon those two branches of the subject. He then proceeds to deal with the third part of distribution, namely, the profits of capital. A brief examination of both the theory and arguments will possibly convince any mind of ordinary intelli- gence of the utter and complete fallacy of the pro- positions advanced and the reasoning by which they are supported. Nor have I any doubt that the consideration of Mr. Mill's argument with ordinary care will convince even a sceptical mind of the gross, if not culpable, ignorance of economists upon the subject of distribution. Mr. Mill, in chapter ii., section 15, treats exclusively of the profits of capital or stock, which he states to be "the gains of the person who advances the expenses of the production." He then proceeds : "As the wages of the labourer are the remuneration of labour, so the profits of the capitalist are properly, according to Mr. Senior's well-chosen expression, the remuneration of abstinence. They are what he gains by forbearing to consume his capital for his own uses, and allowing it to be consumed by productive labourers for their uses." Now this paragraph adds something, and something very material, to Mr. THE LABOUR QUESTION SOLVED; 227 Senior's expression, whicli in this very same para- graph John Stuart Mill approves and adopts. If " the profits of capital " are " the remuneration of abstinence " only, then there is no necessity to allow capital to be used by others in order to obtain profits. If, on the other hand, it would be necessary not only to abstain from the personal use of capital, but to allow it to be used by others in order that profits may be obtained, then Mr. Senior's expression, ap- proved and adopted, is wrong. But let us take it, as indeed it must be taken, that not only abstinence is necessary, but the use of capital by others is also necessary to the obtaining of profits, and we shall only find ourselves getting still more in confusion. For John Stuart Mill immediately proceeds to speak thus : " Of the gains, however, which the possession of capital enables a man to make, a part only is properly an equivalent for the use of the capital itself, namely, as much as a solvent person would be willing to pay for the loan of it. This, which as everybody knows is called interest, is all that a person is enabled to get by merely abstaining from the immediate consumption of his capital and allowing it to be used for productive purposes by others. The remuneration which is obtained in any country for mere abstinence is measured by the current rate of interest on best security ; such security as precludes any appreciable chance of losing the principal. What a person expects to gain who superintends the em- 228 FKOM POVERTY TO PLENTY; OE^ ployment of his own capital is always more, and generally much more than this. The rate of profit greatly exceeds the rate of interest. The surplus is partly compensation for risks; he must likewise be remunerated for the devotion of his time and labour." 1 venture to suggest that in no one page in any writing of authority in the whole range of literature can there be found greater confusion of ideas or greater contradictions than in the quotations here made from one page of John Stuart Mill. We find here these distinct statements : — 1 . The profits of the capitalist are " the remunera- tion of abstinence." 2. The profits of the capitalist are gained by "ab- stinence," and by allowing his capital to be used by productive labourers for their uses. 3. A part only of profits, — that is, interest, — is the remuneration of abstinence, and allowing others, — namely, productive labourers, — to consume it for their uses. 4. A person who superintends the employment of his own capital expects to get much more than interest. 5. The rate of profit greatly exceeds the rate of^ interest. S. Profits are the remuneration of abstinence, of allowing others, — that is, productive labourers, — to consume capital for their uses, remunera- TUB LABOUK QUESTION SOLVED. 229 tion for risk, tlie remuneration for the devotioQ of time and labour. But if a person spends his capital himself and superin- tends its expenditure, how can he abstain from using- it or lending it to others ? Thus on this all-important subject of the distribution of wealth we are gravely told, first, that the profits of the capitalist are the reward of abstinence simply; then that they are the reward of abstinence jointly with the lending of capital to others ; then that pro- fits are the reward of abstinence and the lending of money to others, and remuneration of risk and the devotion of time and labour of the owner himself using his own money; while the statement before made, that profits are the remuneration for abstinence coupled with the lending of money to others, is flatly contradicted, and that interest, which is greatly less than profits, is the proper reward for this. The absurdity of MilFs definition of profits is pointed out by different writers, notably by Mr. Dillon.* * See "The Dismal Scieace," 1882, pp. 61,62. ^^^jSa^^^ Wu min H i 1 CHAPTER VIII. Utopian theories — Coinmunal and Socialist plans — Their weak- ness and errors — Inherent causes of failure in all — Confusion of morals, politics, and economics in all — American Socialism — J. H. Noyes — Mormonism — Its polygamy — Its economy — • NordhofF Vineland — Suggestions as to drink traffic — Contin- ental Collectivist plans and writers — Henry George — Confisca- tion of rent value — Illogical and vicious nature of proposals — Defects and wrongs requiring redress — No salvation in politics — True economic science the only source of hope — Identity in principle between George and Socialists — Atheism of ordinary Socialism — Christian Socialists described — General condemna- tion of modern Socialism — Dr. Woolsey Grouland's co-opera- tive commonwealth — Nihilism — The International — Its his- tory and end — Hyndman — H. V. Mills — Pauper colonies of Holland — Penal colonies of Australasia — Their wonderful success — The Irish exodus — The present wealth of Irish emi- grants in America and the colonies — Reflections upon these three great instances of recuperative human power — The story of Er — Close of Plato's Eepublic — Necessity for immediate action — Time and tide wait for no man — Responsibilities of national leaders and higher classes. In many ages, and in many lands, men have devised plans for the welfare and happi- ness of their fellows. Prom the days when prophets foresaw, in the distaiit periods of the earth's history, the millennial reign of peace, and Plato taught, in the THE LABOUE QUESTION SOLVED. 231 gardens of tlie Academy-j to our own times, men have indulged in these dreams and anticipations of a state of perfect justice, and perfect righteousness upon earth. Utopian as were their dreams, Utopian as were their hopes, rudely disturbed as they all were by the din of war and the selfishness of civilised life, they show that in every age there has existed a belief that a better state of society could be found than now exists, and a hope that such a happy result might be accomplished. The Communistic and Socialistic experiments made during the last 100 years contain more important lessons than philosophy has given them credit for. They have been attempts to solve the social problem upon one side, while the great organisations of which the trades and labour unions, the friendly societies. and the co-operative bodies are typical and repre- sentative have been attempting the same task on the other. While the schemes of the Socialist and Com- munist leaders have been too wide, the aims and pur- poses of the great organisations of working men are too narrow. As a counterpoise to this, the plans and operations of the latter have been eminently practical and successful, while the theories and attempts of the former have been fanciful and unsuccessful. The causes of failure in aU the plans which have been suggested for the social regeneration of mankind are found within themselves. From the Republic of Plato to the scheme of the International, all have aimed at the realisation 232 TBOM POTEETY TO PLENTY; OE, of a heterogeneous and complex policy. The same' germs of failure and disappointment are contained in all. It is not that the results in many cases aimed at are unjust or impolitic. It is not that the means to be adopted are generally unlikely to accomplish the ends proposed; but it is because the social conditions sought to be imposed are too unnatural in their character, and too illogical in their description. No perfect human scheme of social development has ever been drawn up. It is not possible that it can be. If such a scheme were made to-day, it would be obsolete and useless long before it could be brought into general practice. Were it possible to bring it into force, like a new invention, it would need altera- tion before a year, nay, perhaps before a week, had passed. Who would noTF live in the Eepublic of Plato, or amid the calm repose of More's Utopia, obey the orders of his Philarch, or care to leave the busy scenes of life for what Macaulay calls the " pro- found and serene wisdom " of Solomon's house in Bacon's " New Atlantis," or submit to the just bub monastic discipline of Campanella's " City of the Sun" ? That generation has yet representatives amongst us who flourished when the generous but mistaken plans of St. Simon, Fourier, and Eobert Owen were actually attempted in practice. Every part of civilised society is now the scene of some agitation, the aim of which is to supplant our present system of social existence, and give birth to other and new forms. Most of these THE LABOUR QUESTION SOLVED. 233 cannot succeed in their real hopes. They may pro- duce revolution ; they cannot produce success. If, however, sliort of revolution, they are able to build up, piece by piece, a nobler edifice of public welfare, and a more just distribution of wealth and comfort, then they will be useful to mankind. In all substantial progress the signs of the times point out the step proper to be taken. Commerce is impeded by the long route round the Cape, and the Sandy Desert separating the Mediterranean from the Red Sea is pierced. The people are determined to have a fairer representation in Parliament, and the Reform Bill becomes law. Distant parts of the earth cry out for union, and the electric wire is stretched beneath the seas. The colonies of England become great and populous,, they murmur at the distant government of Downing Street, and they immediately possess the powers of independent nations. The hor- rors of slavery are placed before England, and twenty millions of money are freely given to remedy that evil hated of God and man. Labourers complain that they are forbidden by law to join for mutual protection, and lo ! the laws which have existed for hundreds of years are repealed. So, step by step, often after long delays and terrible conflicts, does society pass on in its course. Dissatisfaction with the present and desire for change in the future are by no means confined to Anarchists. The very soundest teachers recognise the Q 234 FROM POVBETY TO PLENTY J OE, necessity for reform and anticipate it. " The indus- trial reformation," says Mr. Ingram, "for which Western Europe groans and travails, and the advent of which is indicated by so many symptoms (though it will come only as the fruit of faithful and sustained effort), will be no isolated fact, but will form one part of an applied art of life .... in a word, consciously directing all our resources to the conservation and evolution of humanity."* The article from which this is an extract is one of exceptional merit and erudition. It differs in form and method from the work of Cossa, but it is the only criticism in the English language at all comparable to the elaborate work of the great Italian scholar. Experience is daily showing the utter failure of Adam Smithes system, but it is not in any sense neces- sary that the reforms proposed by the Communists and Socialists, by Utopian philosophers, the jLand Nationalists, and least of all by the Nihilists, are re- quired or adequate to remedy the evils complained of, or afford a satisfactory solution of the continually in- tensifying difficulties of our social life. The errors into which the various schemes have led their pro- moters are many and diverse. They do not fit them- selves to the characters and circumstances of mankind now existing. Throughout the whole of the Utopian allegories men are supposed to be actuated by the highest and purest motives. Ambition, pride, selfish- * EncyclopfediaBritannica," Political Economy,'' vol. xix., p. 401. THE LABOUE QUESTION SOLVED. 235 ness, and all other evil and ignoble passions are ignored, and men are treated as thougli these qualities had no place in the government of their lives op conduct. The communal and socialist systems, as heretofore existing or attempted, invariably demand sweeping and radical changes in human character as the first condition, not merely of success, but of existence. The earliest communistic society was that of the Christians in the first Apostolic days. The change in human character necessary to create and sustain that wonderful society was no less than the regeneration of the hearts of its members, and the utter extinction in them of selfishness. The breach of this condition, as in the case of Ananias and Sapphira, threatened the destruction of the community, and, as the develop- ment was itself superhuman, detection and punish- ment were superhuman also. This is the only recorded instance of a community actuated solely by unselfish- ness and brotherly love. Unfortunately with decay of faith it soon faded. The systems of the leading modern socialistic and communistic teachers have been founded upon either complete changes or serious modifications both of the thoughts and customs of ordinary life. The institution of the family and of the marriage state, the sanctities of home, parental control, and the incentive of emulation, the natural difierence and inequality of physical and mental power, the noble rivalry which springs from honour- Q 2 236 PROM POVERTY TO PLENTY; OEj able competition^ the reward of active industry and talent, the punishment attending upon idleness, indif- ference, and criminal selfishness, amongst other things, are either totally obliterated or so nearly lost as to change well-nigh completely the aspects and condi- tions of the immemorial life of man. The error of the Socialists lies in this, that they mingle together and confound the science of politics or government and the science of political economy or wealth. The production and distribution of wealth, as such, do not, nor can they ever properly, form part of the functions of government. The primary objects of government are, as we know, the protection of life, property, and liberty. To provide for the safety and good govei'nment of a people is the first duty of any Government. But in a highly-civilised state of society it is found that many things are required by the community and by the people as a whole, inde- pendently of actual safety, though sometimes in the interests of all and for the public welfare. The administration of justice and the national defence are primary objects ; the building and control of railroads and the establishment of a postal service are matters of public convenience. It is quite possible, under existing circumstances, that the governing powers in any State may have not only to make public improve- ments upon which considerable sums of money are expended, and many men employed beyond the ordi- nary work of the public departments, but also to give THE LABOUR QUESTION SOLVED. 237 facilities for self-support to those out of work in order to prevent suffering, pauperism, and crime. And in doing this it seems proper to assert that the labourers if employed should be made to produce wealth in some shape to reimburse the State for its expenditure. If possible, they should be so employed as to utilise for their own support land and other forces of nature in the country itself. It was upon this principle that the pauper colonies of Holland and T3elgium were founded, and it was upon a still wider and deeper principle that the colonies of New South Wales and Tasmania were made to turn the dangerous classes and the waste lands of the empire into great and flourishing com- munities. The State, however, in these cases only placed the three factors of production in contact, land, labour, and capital, and private and associated enter- prise did the rest. If, as the Socialists teach, the State is to control the production of all commodities, to become the employer of all labour, the distributer of all wealth, why should it not, also, say what cloth- ing, what food, what sports, what religion all the people are to use and practise ? In such a case all liberty and all individuality would be gone. But human society will never consent to such a state of things. Not even the most advanced Socialist would tolerate so dreadful a bondage for a week. All that the Socialists require and wish for, — and far more, — can be obtained by a true political economy. Every sys- 238 FROM POVBBTY TO PLENTY; OB, tem or invention which will increase production, every facility for transit over land and sea, every method and appliance for the swift and economical exchange of different commodities ; every plan of social refor- mation which will provide I'or the fair and just distri- bution of the necessaries and comforts of life, can be worked and used with propriety and effect under political economy, and under political economy alone. Their aim, so far as it asserts the right of the indi- viduals who create wealth to enjoy it, is proper. But they will never achieve it by confounding the domains of the two sciences nor by making the State one vast field of Government agencies. On the other hand, the political economists have ever looked upon poli- tical economy as a science whereby capital might be increased, and the wealth of the wealthy become more and more abundant. Nature performs its appointed duties with won- derful regularity, all its parts work in sympathetic accord with each other. The seasons come and go. Seed time and harvest, summer and winter, storm and sunshine, night and day, pass on in their courses. The vegetable kingdom obeys its laws ; the animals perpetuate their different species without fail; the very worms which, so far as we know, blindly follow their instinctive laws of existence, help to enrich the earth, draining and fertilising the soil and fitting it for the service of man. All nature offers to humanity those objects and aspects which satisfy our desires. THE LABOUR QUESTION SOLVED. 239' delight our consciousness, or gratify our tastes. For what and for whom is this " banquet of nature " spread ? Is it for the wealthy only, or the great, or the wise, or the powerful ? We are surrounded by invisible laws which, properly understood and wisely applied, will give the bounties of nature and of industry freely and without ceasing to all. And while the fair earth and its products were not granted to any small section of mankind,, neither were the laws which regulate their distribution framed to enrich only a favoured few. Any science which teaches such a doctrine is false. Those laws of production and distribution which extend the blessings of nature and the rewards of toil to all, and those alone, are true. All others, however specious and plausible, are false. Nor is it difficult to believe that the true system under which man is to retain the fruits of his toil, and which is intended to turn the curse into a blessing, will be, when discovered, simple and easily understood. Such a science, treating as it must of the laws which produce and distribute temporal blessings cannot in its nature be a " dismal science," but a glorious and comprehensive plan suited to all lands, all times, all people, and all circumstances. The causes of failure of all modern attempts, such as those of Fourier, St. Simon, Eobert Owen, and Calet, are not only to be found in the aversion felt by the majority of men to the overturning of so 240 FEOM POVERTY TO PLENTY; OE, many beloved institutions ; they are traceable also, regarded as societies existing for the production and distribution of wealth, to the insecure, illogical, and uncertain foundations upon which they were built. Even a slight examination will be sufficient to reveal many causes, all operating towards the defeat and extinction of such associations. And this, although founded and governed by men of enthusiastic tem- perament, varied knowledge, and lofty purposes. Among the more prominent of these we shall discern causes of various natures. It is difficult to reduce them into any order or to class them in distinct categories. Many of them are of the same general character. Some are absolutely distinct. Thus at- tention may be directed to — 1 . The unscientific and illogical mingling of moral, political, and economic principles contained in the plans themselves. 2. The distinguishing features already alluded to in the weakening of family ties and parental authority. 3. The abolition or partial abolition of individuality, personal property, and personal rights and responsibilities. 4. The fundamental error running through them all, of the equality of men in rights and powers, in requirements, and in share of property. 5. The necessity of a complete moral change in men as a condition precedent to permanent success. THE LABOUR QUESTION SOLVED. 241 6. The aversion to religion, or to that form of it which is prescribed by the Christian Faith. 7. The uncertainty of reward for industry or merit, and of punishment for idleness and wrong- doing. 8. The absence of the ordinary inducements of life to energy, foresight, and the exercise of in- dividual powers. All these but the first would necessarily affect the individual members of every such association, and sooner or later ensure disaster. These, however, are not all. Others are plainly perceivable which would affect the association as a whole. Amongst the most prominent and most certain of these, in addition to the first above mentioned, to produce discontent, •disunion, and dissolution, are the following : — 1. The only common bond between the members was that of opinion, which being necessarily temporary and changeful, would sooner or later be broken. 2. There existed no authority based upon the civil laws of the country empowering the association to make and enforce rules and regulations for its own interior management, and no govern- ing body armed with legal authority. 3. There existed no person or corporate body in whom the common property and rights of the whole society were vested in accordance with law, in trust for the benefit of all interested, 242 FROM POVEETy TO PLENTY; OB^ no body or council possessed of legal powers and compellable to act for the common benefit by laws similar to those which regulate joint stock companies. It is by no means difficult to perceive that these errors being contained in the plans themselves, must inevitably lead to confusion and failure. The mere existence of such flaws in the construction and being of the associations, would necessarily tend to their destruction. It is not necessary to elaborate the reasons which influence judgment in this matter. The principles which formed the basis of these com- munities were in many cases immoral. The bonds of federation were weak and brittle ; the hopes held out were cloudy and indistinct ; the objects aimed at were greatly inferior in power of attraction to the ordinary purposes and objects of life, and the methods of attainment were inconsequential and uncertain. In addition to all these the sacrifices necessary were great, and not only great but continuous. In the face of such difficulties and so great uncertainty of event, it is not surprising that every practical effort failed. It would have been nothing short of a miracle if any one of these attempts had permanently suc- ceeded. Many efforts which have been made to improve the condition of the masses of civilised humanity, have been weakened by the diff'use nature and extent of the theories propounded and the experiments made. THE LABOUR QUESTION SOLVED. 243 Thisj without doubt, has arisen from the want of a clear perception of the fact that the science of wealthy its production, exchange, and distribution, stands alone and apart from all other sciences, as complete in itself as the sciences of chemistry, or geometry. It may perhaps be safely stated that any science will become known and capable of application in exact proportion as its limits and laws are clearly distinguished from those of other sciences, however analogous or cognate in their nature and operation. The science of political economy has only lately been studied and understood as distinct and separate from all other sciences. In the consideration of this subject it must be remembered that political economy envelopes the tem- poral existence of all men. The exact sciences have no aim or object. They are the laws of nature regula- ting space, form, attraction, and proportions of things. They exist altogether outside and independent of humanity. Men cannot change or modify them in the smallest degree. With all the sciences and laws which touch and affect men as such, the case is different. These have a purpose in the general economy of existence. They can indeed be prosti- tuted to other and baser ends. They are continually so misused. It is the triumph of man's intellect to discover not only the laws themselves, but their proper object. The great difference between political economy as now understood, and Socialism, Com- .244 FEOM POVEETY TO PLENTY; OE, munismj and the Utopian theories is this : — The first consists of proper means towards improper ends, or none at all; the second of ends partly proper and partly improper, without any, or, at any rate, adequate means for their accomplishment. The experiments made by Communists and Socialists towards social improvement and happiness traverse in every instance too wide a field. The dreams o£ Utopian writers are tinged with the same colouring. Sometimes they touch upon the distribution of wealth as well as its production, as in Sir Thomas More's " Utopia," and Morelly^s " Basiliade." Sometimes they pass by this subject altogether as foreign to or outside of the ideas of social organisation, as iu Plato's " Republic." In the efforts of the Oomman- ist and Socialist leaders, and the plans proposed by them for the amelioration of human want and suf- fering, the production of wealth from nature by the labour of men, as well as its distribution, found indeed a place, but generally a subordinate place. But in no scheme, either theoretically or in practice, have the limits of the laws of the production, exchange, and distribution of wealth been considered apart and distinct from aU other questions. Many writers have seen with great clearness the errors which existed in society, resulting in the startling contrasts between, wealth and poverty ; nor were they blind to the sources from which these disparities arose. Thus Morelly ascribes all the evils which men suffer THE LABOUR QUESTION SOLVED. 245 through the unequal distribution of wealth to one source, namely, the vice of avarice. " The only vice in the universe is avarice. All the others, whatever be their name, are only different modifications of this vice." And in concluding a book written in answer to some sharp criticisms upon his " Basiliade,'' he stated that selfishness or private interest is " the universal pest, the slow fever, the consumptive disease of society ■" ; and he preached an absolute communion in property as the great panacea for the woes, which afflicb humanity. It is remarkable that in all the modern experiments and in all teaching, both ancient and modern, where the improvement of social organisation has been attempted, no effort whatever has been made to de- velop a true science of political economy, nor to sepa- rate the production and distribution of wealth from the general plans for social improvement. Through- out, from Robert Owen's institution at New Lanark and from the societies of St. Simon and Fourier, in France, down to the latest experiments in the United States, the same tendency is manifest. The proposals of the International, and of all the Socialist bodies in England, France, and Germany, are all weakened by the same defect. Until a better foundation is laid down in theory, practical in its nature, logical in its condition, and widely beneficial in its results, the old system will not only continue in existence, but it will 246 FEOM POVERTY TO PLENTY; OE, increase in vigour. If all the plans wMcli are pro- posed, from those of the loftiest Christian communism to the lowest depths of the destruction advocated by Nihilism were reduced into practice, and the present selfish system of political economy, restricted, as it is, to mere chrematistic science, were continued, the conditions of the multitudes of men would not be bettered, at any rate permanently. Men wonder at the failure of so many noble undertakings, of so much philanthropic and religious effort, of so many seemingly well-conceived plans. So far as these plans are in- tended to affect the religious and moral life of men, they must fail unless founded upon the simplest doc- trines of Christianity. So far as they are aimed at the alteration of social life, they will undoubtedly fall to pieces or fade away if they propose to alter mar- riage relations, family and parental discipline, and those ordinary forms of society which have commonly existed from time immemorial. So far as they attempt to rectify the abuses and sorrows under which, through the unequal distribution of wealth, men now suffer, they mast also be defeated unless they proceed upon a pure and logical system of economics consistent with justice and practicable in daily life. The United States have provided a theatre during the last half-century for more experiments upon com- munistic and socialistic foundations than have been attempted during all previous historic times. In the THE LABO[JE QUESTION SOLVED. 247 history of these movements, there seem to have been two epochs closely assimilated to the two epochs of the co-operative movement in England. The first dates from the introduction of the principles of Robert Owen to America in 1823, and the second from the Fourier movement in 1843. In a most interesting and instructive volume, Mr. J. H. Noyes, — himself no inconsiderable figure in the development of this socialistic philosophy, — ^has given a complete summary of the history of these com- munities.* A compendious record had been commenced many years before by a Mr. A. F. Macdonald, who, how- ever, died before his work was nearly completed. Macdonald was one of those who toil on patiently for the good of men. Sombre and grave in manner, with a benevolent but withal sad air, he travelled far and wide through the States gathering all possible infor- mation about all societies, living or dead. His aim was pure and noble. In an unpublished preface to the contemplated work, found many years after his death in 1854, amongst his papers, he says : — "I have reason to believe, from long experience among social reformers, that such a work is indeed, and will be, most interesting. It will serve as a guide to all future experiments, showing what has already been done ; like a lighthouse pointing to the rocks on which so * " History of American Socialism," J. H. Noyes, Philadelphia, Lippincott, 1870. 248 FEOM POVERTY TO PLENTY; OE, many had been wrecked, or to the haven in which the few have found rest. It will give facts and statistics to be depended upon, gathered from the most authentic sources, and forming a collection of interesting narra- tives. It will show the errors of enthusiasts and the triumphs of the cool-thinking, the disappointments of the sanguine, and the dear-bought experience of many- social adventurers. It will give mankind an idea of the labour of body and mind that has been expended to realise a better state of society; to substitute a social and co-operative state for a competitive one ; a system of harmony for one of discord." And in another preface, speaking as becomes a man of sombre mind, and with an air of sadness, he says : — " It re- mains for a future historian to continue the labour which I have thus superficially commenced ; for the day has not yet arrived when it can be said that communism or association has ceased to exist, and it is possible yet in the progress of things that man will endeavour to cure his social diseases by some such means ; and a future history may contain the results of more important experiments than have ever yet been attempted. I here return my thanks to the fearless, confiding, and disinterested friends who so freely shared with me what little they possessed to assist in the completion of this work. I name them not, but rejoice in their assistance." This was written shortly before Macdonald's death. He and his fearless and confiding friends have mostly THE LABOUR QUESTION SOLVED. 249 passed to the jadgment of Him who seeth not as man seeth, for man looketh upon the outward appear- ance, but the Lord looketh on the heart. The large mass of material collected by Macdonald was used, and is gratefully acknowledged by Mr. Noyes, who, however, amplified and corrected it, and incorporated its results with his own extended observations. The History of American Socialism contains brief histories of nearly one hundred distinct societies based upon widely different principles and plans. Besides the works of Hepworth Dixon and Noyes, a very careful summary of the finances, principles, and statistics of some of the leading American communi- ties has been written by Mr. Nordhoff, whose work is the result, for the most part, of his own examina- tion. I do not include in these brief criticisms upon the American communities any mention of the Mor- mon history. That is a subject in itself, which, with- out doubt, contains many of the features of other individual societies, but extends, in its principles and practice, to a wider range than any of the rest. The destiny of Mormonism is tolerably certain. Its peculiar and distinguishing feature of polygamy will gradually fade. Its extinction will be brought about partly, no doubt, by the positive laws which the States seem determined, not only to enact, but to carry into execution. A still more potent factor for its destruction will be found in the continuous settle- ment of Gentiles in Salt Lake City and the territory 250 FEOM POVERTY TO PLENTY; OB, of trtah, and the breaking down of those barriers which isolation once placed around the location of the chosen people. The tendency of all civilised com- munities is to monogamy. The one man and one woman theory will outlast and overcome all others. It was possible for a few enthusiasts, living alone and apart from the world, secluded by antipathy and violence, to cling with devotion even to the errors which brought persecution upon them. But when the busy stream flows through and intermingles with the sequestered pool, the stagnant water must unite with the flowing stream, and partake of the force and nature of the current with which it mingles. The economy of Mormonism, which will with advantage be retained, may still become a practical precedent for the production and distribution of wealth. And, indeed, the illustration given by the history of the Mormons is quite sufficient to prove that wise measures as well as simple may unite the production and distribution of all the comforts of life gathered even from the sand of a desert, by the hand of labour, under every dis- advantage. No community has ever carried the principle of co-operation so far as they. Mr. Nord- hoff's book, with greater distinctness, and with sharper outline than the woi-ks of Dixon or Noyes, presents the social principles on which the American communi- ties are based. Prom extreme and absolute celibacy to a condition of common sexual life perhaps un- THE LABOITE QUESTION SOLVED. 251 paralleled in any ancient or modern State, we see the gradations in which it is possible for men to live out their little span of existence. The great majority of the American communities founded within the last seventy-five years have already perished. Those which remain will, as such communities, foUow the same track. Nor will the world be any worse when these strange and paradoxical experiments in human life and social existence shall have passed out of the region of fact, and simply live upon the page of history. They also will have served their purpose upon the earth; they will have warned men of the rocks and shallows which abound in parts of the sea of life ; they will still live to point a moral or adorn a tale. It was necessary that all possible thoughts and theories of life should be attempted, that men in these modern times of mental activity and speculation should behold the difference in the possibilities for the attainment of happiness which lie respectively in the old and well-trodden regions of human practice and revealed law, and in those fanciful and grotesque fields to which they were led by the strange vagaries of speculative thought. The most pleasing, as it is the most interesting, of the communities whose history is sketched by Mr. Nordhoff is that of the district of Vineland, where one of the great problems of civilised life is practically solved; and although this practical solution exists only upon a limited area as regards locality and num- E 2 252 FROM POVERTY TO PLENTY; OR, bers, yet in principle it is clearly capable of wide, perhaps of universal application. In another portion of this book, I had, many months before reading the history of Vineland, hazarded the statement that the liquor traffic and public drunkenness could be palpably lessened, if not absolutely extinguished, were the present facilities and inducements for the sale aud purchase of spirituous liquors removed. The history of Vineland strengthens my belief in the theory I then advocated. The figures which Mr. Nordhoff gives as to the material success of many of the American communi- ties are suggestive and encouraging. For they all bear testimony to the same truth that by the union of land, labour, and capital in one proprietary, — even though the land be poor, the labour weak and in- efficient, and the capital small, — the results prove (conclusively that there is no need upon the earth for that want and suffering with their attendant crime, which spring from enforced idleness. These communities are subject to the same laws as the more ambitious efforts before alluded to. The same elements of weakness and decay exist in them as brought the plans of Owen, of Fourier, and St. Simon to ruin. In all such efforts there must be system, and system according to logic and to law. There must be a foundation of legal force and authority, a title to land and other property, rewards for industry and talent, and punishment for vice and indolence. THE TABODE QUESTION SOLVED. 253 The American socialistic experimenls are ia no sense to be compared as efforts to better the condition of the working classes with co-operative schemes in England, or the friendly societies, or the trade and labour unions. They were little more than attempts in the organisation of social life. Here as elsewhere we are met by the unfortunate fact that the com- plete autonomy of the science of wealth has not yet been recognised or understood. It stands, or ought to stand, distinct and perfect in itself. It is, indeed, joined with other sciences in the world of law as individual men are comprised in a nation, but, like each individual, it has its own separate existence. It is confounded with politics, with communism, with socialism, and with religion, but it is totally distinct from all. It is simply the system of laws by which wealth can be best produced, most easily exchanged, and most equitably distributed. Politics may indeed guide its development by positive law ; religion, by its honesty and sympathy, promote its interests and inspire its activity, but it is distinct from both. The indiscriminate combinations of wealth-producing and communal and socialist settlements have nearly always failed. They who would succeed in the prac- tice of political economy must be guided by proper and just laws for that science only. Neither govern- ment, theology, communism, nor socialism, however perfect, can supply the want of correct principles for the science of wealth. Beyond the necessaries of life there lies the region in which man seeks knowledge and 254 FEOM POVEETT TO PLENTY J OE, rest and recreation. In a period such as this, when under wise and righteous social laws wealth so easily procured might he widely enjoyed^ there seems no serious difficulty in providing for the whole community a very large participation not only in the means of living, but in the means of making life enjoyable. The nearest approach to a practical theory is that of Karl Max (Winkelblech), which, however, rests in theory only, and it is one of the strongest testi- monies to the virtue of co-operation or association ever written. Among other proposals must be mentioned one, which during the last few years, has achieved great publicity. I allude to the Land Nationalisation of Mr. Henry George and Mr. Wallace. The proposition made by Mr. George in his valuable work, " Progress and Poverty," if carried into effect would not, so far as I can see, achieve the result which he, with so much enthusiasm, hopes and wishes to obtain. Nor is it easy to see how the condition of the labouring classes would be improved materially by adopting his one principle stated by himself in these words, " We must make land common pro- perty.'' At the present time land is common pro- perty in so far as all land belongs to the State, and it is undeniable that the commonwealth has at any time a right, complete in itself, to resume possession of its own. The proposals to which Mr. George invites the THE LABOUR QUESTION SOLVED. 200 assent of thinking men^ as following upon the adop- tion of his one principle^ are two in number. The first isj — " We should satisfy the lawof justice ; we should meet all economic requirements by^ at one stroke, abolishing all private titles, declaring all land public property, and letting it out to the highest bidders in lots to suit under such conditions as would sacredly guard the private right of improvements. " But such a plan, though perfectly feasible, does not seem to me the best. " I do not propose either to purchase or to confis- cate private property in land. "It is not necessary to confiscate land, it is only necessary to confiscate rent. "What I therefore propose as a simple, yet sovereign remedy, which will raise wages, increase the earnings of capital, extirpate pauperism, abolish poverty, give remunerative employment to whoever wishes it, afford free scope to human powers, lessen crime, elevate morals and taste and intelligence, purify government, and carry civilisation to yet nobler heights, is io wppropriate rent by taxation."* Surely such reasoning as this overshoots itself, and is not calculated to eSect the noble purposes which its author has in view. The appropriation of all rent by taxation without compensation to the owners, would be, in spite of * " Progress and Poverty,'' p. 287. 256 JEOM POTIETY TO PLENTY; OE^ any arguments on abstract justice^ a glaring wrong ; nor would it effect any of the reforms contemplated by Mr. Greorge. What it would do would be simply to take the burden of taxation from the shoulders of the many and from wealth of all other kinds^ to the ruin of one particular class of the community. The evil effects of our present land laws and the necessity for radical changCj are plain and certain, but to advance the proposition that all land is to be common property, and to carry that principle out in its full meaning, would be to cause society to dissolve and communities to relapse into barbarism. If it be once admitted that in one particular spot, — whether it be a small allotment in a crowded city on which stands the shop and dwelling of a tradesman, or half a dozen acres in the vicinity of some great town from which the dairyman or market gardener raises with unremitting toil that produce, upon the sale of which he and his family subsist, or whether"it be the farm where corn and cattle and fruit are grown for the food of men, — one man as against all the world shall have the right of occupation for any specified time, however limited, then that land so far is not, and cannot be, common property. Mr. George's argument is also wrong and contra- dictory considered from another point of view. He states that private property in land is unjust, and that it cannot be defended on the score of justice. THE LAUOUE QUESTION SOLVED. 257 The same reasoning might be applied to the owner- ship of all cattle, sheep, and all living animals ; all fruit and productions o£ the earth ; and all natural production whatever. But to assert that no man has a right to the exclusive use of and exclusive property in land under any restrictions, or for a specified time, is to forbid all building, all cultivation, all improve- ment, and all advance of civilisation. No man would build a house, or rent a house, unless the exclusive possession of that house were secured to him by law ; and no man would plough a field or plant an orchard unless the law of the society in which he lived assured to him the exclusive right to reap the crop and gather the fruit in harvest. To say, therefore, that there can be no private pro- perty in, and no exclusive use of, land by individuals, is irrational and absurd. The very proposition which Mr. George makes to appropriate rent by taxation, proves that there must be exclusive possession and usage of the land by those who pay the rents. Pro- perty in land, according to our law, is of various kinds. For instance, there is the title in fee simple, which is a perpetual title or for lives, the highest title known to English law ; a title for a term of years or for less than a year, and title by permission or sufi"er- ance or by occupancy. All these, however, are private property in land. The error into which it seems to me that Mr. George has fallen is in con- founding the distinctions which exist between prin- 258 PROM POTEETY TO PLENTY; OEj ciples and degrees. In his anxiety to redress the great sufiferings which have been and now are being inflicted upon the poorer classes by the unequal and unjust distribution of wealthy and by the operation of those artificial laws which enable the owners of land to live in opulence on the labours and privations of their fellow-men, he has rushed to conclusions which reason does not warrant. He has wrongly traced the miseries which men suffer in his eagerness to relieve those miseries. The aggregation of enormous estates in fee simple in private hands, the great increase in value of those lands by what is called the " unearned increment," or, as it would be more properly termed, the growth of value; the immense political and social power which has been given by the laws of descent, by the powers of hereditary legislation, by the comparative immunity from taxation, and by the controlling in- fluence of a great landed aristocracy, all arising from the excessive degree to which private ownership of land has been carried, — these are indeed some of the sources from which the present inequality of wealth, — the poverty of the great masses of the people, — have arisen. Under such conditions the history and the laws of England have been made by the great proprietors of land for their own benefit and the aggrandisement of their order. By them literature has been patronised and directed ; in their interest laws, like the laws of Draco, written in blood, were THE LABOUR QUESTION SOLVED. 259 enacted ; for the protection of their interests standing armies were maintainedj and the poor were left un- educated. They did not exist and labour for the public wealj but the whole machinery of government and the industrial powers of a nation were utilised directly and indirectly for their advancement and the continuance of their power. The same history was traced in France, but that history was stopped and its institutions shattered by the Revolution. "With us it will also be stopped by a revolution, we may hope, not of blood, but of thought, of reason, of argument, and of public opinion. With us the tongue and the pen will.prove mightier than the sword. It cannot be denied, as a matter of taxation simply, that land and land values are the fairest and most easily-collected of all taxes. But there is other wealth besides the value of land which should bear its share of the burdens of society, while luxuries should un- doubtedly contribute their portion. Nationalisation of land will not give all that is required ; taxation of land is indeed a just taxation, and the principle in that direction advocated from the days of Louis XV. to the year of grace 1888, seem to me undoubtedly ■correct. But other species of property should be taxed also. All wealth, which is not created by the personal effort of the individual man, is brought into existence either by the laws of nature or by the work of others. For that, therefore, the possessor is in- debted either to nature, — that is, to forces which are 260 FROM POVERTY TO PLENTY ; OR, primarily common property, — or to the labours of others. Taxation is levied to supply the natural wants of a whole community. The State is, from this point of view, an individual ; its wants must be satisfied, its debts paid, its safety assured, its functions properly exercised, its multifarious duties duly performed. To supply the annual charges necessary for all these duties, it draws or ought to draw upon its own re- venues. That revenue of right should be derived from those portions of the aggregate estate and wealth of the entire people which more especially belongs to the community at large. The unearned increment in land, the amassed wealth inherited or obtained by gift, or will, or succession from others, the personal estate of indiviuals not the result of the personal toil of the owner, — these are more properly the subjects of public taxation because they belong more to the general body of the people than the immediate proceeds of a man's own personal labour. But no system of taxation can ever do away with want and hunger except by pauperising the people, and to do that is to smite part of the nation with moral leprosy. We must not rest upon any govern- ment, or any system of laws, for these are always liable to abuse, to corruption, and to tyranny. We must trust to the reasoning power which tells us to seek an economic plan. The only way in which land and the instruments of production can ever be truly nationalised is by THE LABOTJE QUESTION SOLVED. 261 enabling the people to enjoy the benefits and share in the wealth arising from their use. This is possible. It is at once justj wise, expedient, and easy of accom- plishment. Turn now to the observation of another truth necessary to the proper consideration of the subject. All land in the British Empire is held from the Crown as representing the people. The highest title is a tenancy in fee simple. No person versed in English Constitutional Law can doubt that under certain circumstances and upon certain conditions all lands granted by such a title may be resumed by the State. The taking of all rent values by taxation, therefore, as advocated by Henry George is perfectly legal and perfectly legitimate. Two conditions, however, are always attached to the taking by the State of the individual property of its citizens. First, it must be necessary for the public safety or the public good. Second, such recompense must be made to the individual by the State if possible as will compensate him for the loss which he sustains. The greatest sacrifice of all which the State demands from its individual members, — that of life, — it is impossible to repay, but all questions of material property can be fairly adjusted and compensation given. If this be not done, the taking by the State of the property of an individual or a class as contra- distinguished from that of the community, is either confiscation or robbery. Familiar instances of the resumption of land are to be found in the formation 262 FROM POVIETT TO PLENTY ; OE, of public workSj of municipal improvements^ and the erection of military stations. Upon principle, there ought to be no hesitation whatever in resuming land for the purpose of settling industrious workers upon it. The proposed purchase of the Irish estates is a gigantic case in point. Although the plans of Mr. George and the Socialists are not identical, yet they are nearly enough connected to enable us to criticise them almost in the same manner. What the Land Nationalist would do with land the Social Democrat or Federalist would do with all the means and instru- ments of production. All capital, all machinery, all means of productive usefulness should become the property of the State. There is but one difference in the ground of their arguments, and that can only be partially applied. Mr. George and Mr. Wallace hold that land is the source of all wealth. Land, therefore, is national property, — but many of the Socialists go further. They teach with the physiocrats that all the forces of nature including land are the sources of wealth. Why, therefore, should not all cattle, sheep, and fruits of the earth and seas ; all discovered laws of nature and inventions, belong to the people ? There is a strange dissimilarity between the two schools in one important respect. While the leaders of the Land Nationalists number in their ranks most eminent Christian men and teachers, the great body of the Socialists are essentially infidel. The unbelief which prevails among the majority of THE LABOUR QUESTION SOLVED. 263 Socialists is both strange and distressing. They look upon religion and the churches, — and in the later case with too much justicej — as maintaining the present order of things and as persistent opponents to all plans for social regeneration. They are not content to look for a rectification of wrong-doing in a future world. This life is certain and self-evident, and they must realise their ideals here or not at all. They occupy a peculiar position. They do not profess atheism, but simply negative all notions of religion and of God. The contemplation of the dreadful sufferings under which the multitudes who create wealth for others groan from the cradle to the grave seems to prove that if there be a God, He is not a God for the poor, the toiler, or the oppressed, but only for the great, the rich, and the happy. They give forth a pathetic and pitiable cry. Like the children of Israel in Egypt or in later captivities, they complain that God, if He exists, has forgotten them and will not fulfil His promises. They are wrong and foolish. But how great is the guilt of those who have driven them to this practical atheism. The result, and partly the cause, of this is the antagonism of the churches generally to socialism, and from this, as Schaeffle remarks, " the socialism of to-day is through and through irreligious and hostile to the church. But to this also there are notable exceptions. In Germany the Eoman Church, led by Von Ketteler, Archbishop of Mayence, who in his 264 FROM POVEETT TO PLENTY; OE, book " The Labour Question and Christianity," uttered a loud and eloquent appeal on behalf of the labouring classes is an example. Eventually many of the Protestant divines joined practically in the same cause, which was unwisely checked by legislation in 1878. And such, for example, was the position maintained by the Christian Socialists of England forty years ago, — a band of noble patriotic men who strove hard, by word and deed, to bring all classes of the com- munity to a knowledge of their duties, as well as their interests, and to supersede, as far as might be, the system of unlimited competition by a system of universal co-operation. They inveighed against the Manchester creed, then in the flush of success, with an almost prophetic fury of conviction, as if it were the special Antichrist of the nineteenth century. Lassalle himself has not used harder words of it. Maurice said he dreaded above everything " that horrible catastrophe of a Manchester ascendency, which I believe in my soul would be fatal to intellect, morality, and freedom "; and Kingsley declared that " of all narrow, conceited, hypocritical, anarchic, and atheistic schemes of the universe, the Cobden and Bright one was exactly the worst." They agreed entirely with the Socialists in condemning the reign- ing industrial system: it was founded on unrighteous- ness; its principles were not only un-Christian, but anti- Christian ; and in spite of its apparent commer- cial victories, it would inevitably end in ruin and THE LABOUR QUESTION SOLVED. 265 disaster. Some of ttem had been in Paris and wit- nessed the Revolution of 1848, and had brought back with them two firm convictionSj — the one, that a purely materialistic civilisation, like that of the July Monarchy, must sooner or later lead to a like fate ; and the other, that the Socialist idea of co-operation contained the fertilising germ for developing a really enduring and Christian civilisation. Mr. Ludlow mentioned the matter to Maurice, and eventually a society was formed, with Maurice as president, for the purpose of promoting co-operation and education among the working classes.* This age is called upon to behold a revival of thai sympathy which in other days the Christian Church eflFectnally expressed for the poor and the oppressed. Guilds and orders are rapidly rising in many Churches which have for their object the amelioration of the condition of the poor. Nor is it at all unusual to hear the opinion openly stated that Christianity alone will set right the disjointed and painful framework of the body politic. It should not, however, be forgotten that Chris- tianity is a faith, and although it supplies the very holiest and grandest motives, it cannot give a mode of action. The whole Apostolic College could not, were they on earth now, drive a steam engine with safety, nor, save under miraculous power, speak a word * John Rae, " Christain Socialism in Germany,'' Contemporary Beview, January, 1882. 266 FROM POVEETy TO PLENTY; OE, of English . The most pious and devoted Christian, were he not a shoemakerj would make but a miserable pair of boots. To accomplish any purpose in life, he who essays to perform must know how to do the thing proposed, and he must use means suitable and sufficient for the end desired. So in this case, Chris- tianity will, in truth, supply the motive power, but it must work through a system of political economy which will ensure, or at any rate allow, success. Acting under the anti-Christian system now in vogue, all the Churches of Christendom can be of little use. Supposing a revival of the community of goods, what would be the result ? Simply the giving up by the wealthy of their property and their means of useful- ness, to produce a community of paupers. The result desired is different from this. It is to make the poor rich through their own labours ; it is to give the needy and helpless, the widow, and the orphan a legal right to subsistence based upon contract, and earned by the bygone common work of the com- munity, including the recipients themselves, or their husbands and fathers. It is to utilise the glorious inheritage of desolate lands given to us, and to tap the fountain of nature's golden streams. It is to suit wise means to noble ends, to attain results of surpass- ing value and importance to mankind by the adapta- tion of natural laws and by the practice of honest toil. To accomplish this is the aim of all reformers in THE LABOUK QUESTION SOLVED. 267 this pathj but tlie means they take and the assistance they invoke are different, and in many cases antagon- istic. It is evident that in the opinion of men who choose to think dispassionately upon this subject. Socialism cannot succeed, and that if it could it would be by no means the blessing which its leaders hope. The revolution is too violent, and not in the Tight direction. The best opinion is that of Dr. Woolsey : — " But in such a thorough change of society as Social- ism contemplates there is no room for compromise. The plan is to take away all the means of production, — all land, machinery, manufactories, all means of trans- port from private persons, — and transfer property in them to the State, to abolish all private trade credit, business relations, and the medium of circulation, •without which these could not go on ; so that there is not a work in life, not an employment or pursuit that would not be put on a wholly new basis. What room for compromise is there here ? There never was a revolution in history since history told the story ■of the world so complete as this ! Nations have passed under the sway of conquerors, but an age or two brought back the rights of property and free management of their affairs to multitudes of the con- quered. Nations have been deported to distant settlements, but multitudes throve in the land of exile, or their descendants were restored to their pro- perty in their old home. Is it conceivable that with s 2 268 TEOM POVERTY TO PLENTY; OK, all personal evils, wliicli stand at the very door of such a change in view, multitudes would succumb and com- promise rather than risk their lives for an essential good and a sacred right, as they regard it, of them- selves and their posterity."* Dr. Woolsey shows the improbability, I had well- nigh said impossibility, of the ultimate victory of Socialism. In his book, so full of quiet and cogent argument, of profound research, of moderate asser- tion, of calm and deliberate enquiry, and of just deductions, the author leaves scarcely anything to be desired. I know of no other work upon this impor- tant question which in the same brief space and unpretending manner covers so wide a view, or draws such clear deductions. Contrasting the calm and philosophical manner of this work with the abusive and contemptuous tone adopted by some of those, for instance, who took it upon themselves to criticise Mr. Henry George's " Progress and Plenty," one cannot but help regret- ting that the task of writing upon such questions does not fall more often to the lot of men like Mr. Theodore Woolsey. The aim of Socialism is summed up by Schaeffle : — " The ; alpha and omega of Socialism is the transmutation of private competing capital into rented collective capital." Many social reformers go one step further with * Woolsey's " Communism and Socialism," p. 228. Scribnet and Sons, 1883. THE LABOUR QUESTION SOLVED. 269 Socialists* JSTofc only do they admit mucTi of the Socialist indictment against the present industrial system, but they agree with the Socialists in thinking that the only ultimate solution of the question will be found in the union of capital and labour in the same hands. It is in the method of bringing about this solution, and in the form of its realisation, that social reformers definitely part company with Socialists. 1. The only proper nationalisation of land is that which takes the so-called unearned increment for the service of all those who help to create it, and provides that the land shall be held by individuals or organisations for the benefit of all thus aiding in its utilisation. 2. The organisation of industrial and agricultural armies under State control must be limited, first, to cases in which there are unemployed who cannot obtain work in the labour market ; and secondly, that the control of such produc- tive bodies should not be restricted to the State, but extended to all local bodies, and that this control shall be only exercised in cases where private or public associations are unable to carry on the necessary undertakings. The most elaborate work on State Socialism, but which borders on true co-operation, is Gronlund : — t " State Socialism, as to be practised in the co- * " Socialism in England," p. 326, G. H. Orpen. t Gronlund's " Co-operative Commonwealth," p. 105. 270 PEOM POTEETY TO PLENTY j OK, operative commonwealtlij is in no sense to be com- munistic;" "all workers are to be paid by results." " Communists make all property common property, while our commonwealth will place only the instru- ments of production, — land, machinery, raw material, &c., — under collective control. They require every one to do his share of labour, and allow him to consume as he needs. Our commonwealth leaves- everybody at perfect liberty to work as much or as little as he pleases, or not at all; but makes his consumption exactly commensurate with his performances." The pages which follow this quotation from Mr.. Gronlund^'s able work are so clear and distinct in their proofs of the advantages of co-operative production,, exchange, and distribution, that I might well reprint them in full. But no necessity is shown by the author for the interference of the State, unless it be demon- strated that voluntary associations cannot and will not undertake the duties and privileges of so great a task. To create and distribute wealth is no- part of the duties of Government. It may, indeed, become necessary for the Goverment, representing the people,, to intervene between any section of the community and want or enforced idleness. It may also be the duty of the central or local authority to aid co-opera- tive production and distribution, properly so called, by giving land and advancing capital; but this is proper, because the welfare of the whole is paramount THE LABOUR QUESTION SOLYED. 271 to the interest of the individual, and because the State may be rightfully called on to protect its weakest members. To hand over to the State, that is, the Government for the time being, the whole production, exchange, and distribution of wealth would be to commit social and political suicide. The delays, the corruptions, the tyrannies, the irresponsibility, the favouritism, the bribery, the party feeling, the conser- vatism, and the selfishness attaching to such a system would be absolutely fatal to any hope of a favourable result, and such an experiment must, while the present necessities as to holding of property and as to human character and conduct exist, end in fatal disaster. It would be impossible within a moderate scope to criticise or even to describe the various plans and suggestions made in different countries for the pur- pose of introducing a new and better state of social economy. Some of the Collectivist teachers, notably the Belgian, Oolins, who, up to the time of his death in 1859, was a voluminous writer upon what he called Rational Socialism ; Frangois Huet, who lived ten years longer than his Belgian contemporary, and whose principal work, " Le Regne Social du Christianisme," has long been considered one of the most exalted efforts to portray a complete theory of society based on Christian Socialism ; and Dr. SchaefiSe, once Minister of Finance at Vienna, and a very eminent Grerman economist, have given the most complete ideas of the Collectivist social state. The student 272 FKOM POVERTY TO PLENTY J OK, who desires to go deeply into the curious and inte- resting speculations of the different writers upon these various theories, will find a great mass of information concerning them in M. de Laveleye's " Socialism of To-day " ; Dr. Woolsey's work on Socialism and Com- munism ; Kauffman's two works on Socialism and on Utopias ; H. M. Hyndman, " The Historical Basis of Socialism in England" ; and the articles in the leading magazines during the last ten years of De Laveleye, Hyndman, and John Rae. The extreme point of revolution is reached in Nihilism, which, as its name signifies, is the doctrine of destruction pure and simple. It was the hatred of government, and all its forms of rule, that impelled Michael Bakunin to break with Karl Marx, and to preach the simple doctrine of destruction. Despair of any possibility of change in existing institutions must have been deeply rooted in the heart of Bakunin before he declared his war of extermination against property, against government, and against society. And deeply rooted must have been the same conviction in many hearts, for the his- tory of Nihilism during the last twenty years records the life and death of a great army of martyrs. The aged and the young, ignorant and learned, the daughters of princes and the sons of peasants, the wealthy and the penniless, have, without distinction, given their efforts and their lives for the furtherance of this terrible project. The progress of human free- THE LABOUE QUESTION SOLVED. 273