m\\ i ill j m Class. Book, JELM GopyrigTrtl^?.. COPYRIGHT DEPOem PROBLEMS OF AMERICAN DEMOCRACY AMERICAN SOCIAL SCIENCE SERIES AMERICAN ECONOMIC LIFE, by Henry Reed Burch, Ph. D. A study of our economic problems from the civic and social point of view. AMERICAN SOCIAL PROBLEMS, by Henry Reed Burch and S. Howard Patterson. An introductory sociological study of Ameri- can civilization. PROBLEMS OF AMERICAN DEMOC- RACY, by Henry Reed Burch and S. Howard Patterson. A combined treatment of the political, eco- nomic, and social questions of the day. Problems of American Democracy POLITICAL, ECONOMIC, SOCIAL BY HENRY REED BURCH, Ph. D. AUTHOR OP AMERICAN ECONOMIC LIFE, ETC. SOMETIME FELLOW IN ECONOMICS, UNIVERSITY OF PENNSYLVANIA HEAD OF DEPARTMENT OF HISTORY AND COMMERCE WEST PHILADELPHIA HIGH SCHOOL FOR BOYS PHILADELPHIA AND S. HOWARD PATTERSON, A. M. CO-AUTHOR OF AMERICAN SOCIAL PROBLEMS WHARTON SCHOOL OF FINANCE AND COMMERCE UNIVERSITY OF PENNSYLVANIA PHILADELPHIA New York THE MACMILLAN COMPANY 1922 All rights reserved Printed in United States of America Copyright, 1922 By THE MACMILLAN COMPANY Set up and electrotyped. Published April, 1922. 4PR -5 |922 ©CLA659465 ^0 t "Our faith in the future of the Republic is firm, because we believe that on the whole and in the long run our people think clearly and act rightly." — Theodore Roosevelt. PREFACE To the gradual crystallization of educational thought in favor of a general study of the social sciences in secondary institutions, this book owes its origin. The attempt has been made to acquaint the student with the bold outlines of the political, economic, and social development of Amer- ican institutions. The task involved presented so much freedom of choice that, naturally, opinion may differ as to the relative importance of the various materials available for this purpose. However, the aim has been to provide the student with typical material for a general introduc- tory course in problems of democracy, which not only stresses certain fundamental characteristics of our own civilization, but preserves at the same time a proper bal- ance between the political, the economic, and the social factors in American life. Furthermore, the topics selected have been treated as unified problems, each of which is dis- cussed from the standpoint of general social development, rather than subdivided into a series of separate, air-tight compartments labeled political, economic, and social. Since this volume presents a combined treatment of these three elements, it is intended primarily to meet the needs of those institutions in which opportunity is lacking for a detailed treatment of the social sciences individually. It follows the same method pursued in the companion books, American Economic Life and American Social Problems, and draws upon material contained therein. It marks, viii Preface moreover, the advent of a new movement in secondary education, to which the authors hope it makes a definite contribution. Philadelphia, Pa., March, 1922. TABLE OF CONTENTS Cia^X, S^ XXVIII. ^y XXIX. A Progressive Society The Influence of the Physical Envlronmen The Influence of the Social Environment Early Group Life The Evolution of the State . The Origin of the American State The Organization of Political Machinery The Political Machinery in Motion A Century of Political Evolution The Growth of Cities . Problems of the City Our Increasing Population Americans — Old and New The Problem of Immigration The American Race Problem Possibilities of Our Economic Envlronmen Conservation of Our Natural Resources The Industrial Revolution Modern Capitalistic Production . Modern Capitalistic Organization. The Regulation of Monopoly Government Control of Transportation Regulation of International Trade National Regulation of the Currency Meeting the Increased Cost of Government The Distrebution of the National Income Proposed Economic Reconstruction of State Problems of Organlzed Labor The Cooperation of Labor and Capital page i 13 24 34 46 57 70 82 95 109 127 141 157 167 179 194 208 223 236 248— 260' 272 286 304 317 33° [E 341 357 37i Table of Contents CHAPTER XXX. The Conservation of Labor . XXXI. Industrial Risks and Social Insurance XXXII. Standards of Living XXXIII. The Problem of Poverty XXXIV. The Organization of Charity XXXV. The Problem of Crime . XXXVI. The Treatment of the Criminal XXXVII. Defectives in Society XXXVIII. The Problem of the Modern Family XXXIX. Public Education- in a Democracy XL. The Widening Morality and Social Progress Appendix. Constitution of the United States Index PAGE 387 40I 417 429 445 464 479 499 5i8 543 560 576 597 PROBLEMS OF AMERICAN DEMOCRACY PROBLEMS OF AMERICAN DEMOCRACY CHAPTER I A Progressive Society I. The problem stated i . Early writers 2. A dynamic society : a. Meaning b. Examples of change 3. The gains II. The nature of adjustment 1. Maladjustments 2. Need of adjustment 3. Meaning of adjustment 4. Principles of adjustment: a. Natural capacity b. Cooperation 5. Progress and evolution III. The two factors 1 . Some illustrations 2. Influence of heredity : a. Physical traits b. Mental traits 3. Importance of environment The Problem Stated. — Since the dawn of civilization man has sought an explanation of the physical and social world about him. The early literature of the ancients — the mythologies of the Chaldeans, the Greeks, and the Nor- 2 Problems of American Democracy wegians — has several different explanations, each colored by the peculiarities of its particular environment. Furthermore Early local institutions and codes of law are frequently writers. explained in terms of some mythical lawgiver like the Spartan Lycurgus. Again, from the days of an- cient Israel is heard the story of oppression, and prophets of old lift up their voices against the evils of their day. Among the early Greeks, Plato imagined an ideal Republic in which the just man could live in happy security, while the drones worked, the soldiers policed, and the philosophers ruled. Toward the close of the Middle Ages, William Langland wrote the Vision of Piers Ploughman, an ideali- zation of the England of his day, in which all existing evils were righted. Each age has dreamed its own Utopia, which the march of the centuries has not brought to pass. This attempt of society, even if unsuccessful, to realize its ideal is a healthy sign of progress. Stagnation is the . fate of the land whose young men no longer society: dream dreams and whose old men have ceased Meaning. , • • » . ... r to see visions. A progressive society is one of ever advancing ideals of social justice as well as of con- stantly expanding material wants and increasing produc- tion. Thus, our Western civilization, in contrast to that of the Orient of a generation ago, may be described as a dynamic rather than a static society. China was one of the earliest nations to develop a civilization, and its culture is very ancient. Centuries ago, however, its social habits of thought crystallized into fixed and unchanging institu- tions. A certain adjustment to the physical and social environment had been reached and further change ceased. Western nations, hitherto inferior in culture, forged ahead by progressive inventions and changing habits of thought. A Progressive Society 3 Many kinds of change in a dynamic society will imme- diately suggest themselves. To the student of society the most important developments to be traced are the social, the political, and the economic. An interesting political evolution is that from despotism to democracy, from "Divine Right" to Constitutionalism. An Examples equally important development is the series of oi change - economic changes which we call the Industrial Revolution, in which the handicraft stage was succeeded by the age of machinery and capitalistic production. Migrations, resulting in the mixing of different races, serve as an illustra- tion of a social change. In a dynamic society political, social, and economic changes are constantly synchronous and are mutually interdependent. In all three respects America is an excellent illustration of a dynamic society. Although much remains to be accomplished, society has already made many progressive changes or adjustments. Serfdom and slavery have been abolished, and , , ., , . The gains. no longer do men toil so incessantly as when conditions of life were precarious. Primitive man lived from hand to mouth without any accumulation of surplus wealth. Since the Industrial Revolution, however, pro- duction has so increased that goods formerly regarded as luxuries are now consumed by all. Ships from all parts of the world bring to the poor man's table commodities which princes of old could not have purchased. The dream of Roger Bacon has come true; inventions have not only lightened the burden of labor but they have resulted in more leisure time for the worker. The wealth of our natural resources is so abundant that exploittion is no longer neces- sary. Higher ideals prevail and public opinion will no longer tolerate what was once regarded as necessary and moral. 4 Problems of American Democracy The Nature of Adjustment. — Maladjustment may be defined as the failure of society to adjust itself properly to Maiad- great changes wrought during a lapse of time, justments. These changes are characteristic not only of human society but also of inanimate nature. For example, Nature's Adjustment — Niagara Falls with the passage of centuries, the earth's crust was slowly lifted up and a mountain barrier formed across the path of a stream. Equally slowly and steadily, however, the stream proceeded to cut a newer and a lower river bed for its passage to the sea. Witness the unconscious adjust- ment in the physical environment at the Delaware Water Gap. Social maladjustments are similar obstacles in the path of society, boulders through which the stream of progress must cut. In a country like China, where the force of tradition is potent, these maladjustments are explicable. It is not difficult to understand why, in spite of rich natural resources, the specter of poverty stalks through A Progressive Society 5 the land and the death rate rises to enormous proportions. The ways of the fathers interfere with the utilization of the physical environment. In the United States, however, there is little justification for maladjustment. America is a new country, full of modern ideas and untrammeled by ages of tradition. It is rather startling therefore to find, in a land of popular education and democratic ideals, a society that fails to change the environment of law and custom in order to meet the new conditions of the world of to-day. The Industrial Revolution, culminating in the factory system and in large scale production, transformed our economic life and made social adjustment neces- sary. In the present age, therefore, a number adjust- . ment. of unsettled problems of an economic and social character have survived the transformation of our industrial environment. Housing and health conditions do not con- form to scientific knowledge and present ideals. In a land of riches, poverty still exists, and women and children labor for long hours in unhealthy factories. Men are still sub- jected to risks in the dangerous trades, while every year human lives are sacrificed in industrial accidents. Friction between labor and capital results in strikes and lockouts and from such industrial conflicts society suffers. In view of all these circumstances the need of social adjustment is evident. Adjustment consists of the removal by society of appar- ent obstacles in the path of progress. These obstacles come down to us from the past in the form of customs, __ r Meaning of laws, fixed ideas, and methods of living. They adjust- ment, have been suited to an older environment — either physical or social — but are out of harmony with present conditions. Society must therefore change these 6 Problems of American Democracy fixed ideas and institutions so that to-day the life of man may reach its full fruition. For example, the traditions of hard continuous toil, of inadequate wages, of bad housing conditions, and of unhealthy working surroundings have come down to us from an age when such ideas were an out- growth of meagre physical resources or lack of scientific knowledge. But to-day, in normal times, an eight-hour day, high wages, and good working conditions are easily attainable. Society, therefore, must change from the old to the new regime. All life is a process of adjustment. We find it at work in the physical world, in organic life, and in society. In the Principles physical world the process is unconscious. But of adjust- when society seeks to change environing social Natural conditions in order to meet the needs of man's capaci y. p re sent life, it proceeds on two principles. First, it acts on the theory that man himself is capable of improvement and not always bound and fettered by laws of physical and mental inheritance. While recognizing, of course, the existence of certain inherited physical and mental handicaps, society, in working out the process of adjustment, proceeds on the principle that the vast major- ity of mankind is inherently capable of progress. In other words, man's future is not regarded as always determined by his biological past. The son of a pauper may have in him the germs of greatness as much as the child of the millionaire. In the second place, the process of adjustment is accom- plished through the principle of cooperation. Individuals, working together, must accomplish the changes Cooperation. ..... , in the social environment necessary to man s freedom and development. Compared to the organized A Progressive Society 7 forces of society individual efforts are powerless. Never will great changes be wrought in the social order until the doctrine of unshackled individualism is recognized as belonging to the past age which gave it birth. It will be seen that all change is not necessarily progress. Evolution may travel in a circle, and it may go backward as well as forward. Progress is conscious evolu- _, # Progress tion, that is, purposive changes directed toward and some clearly visualized ends. Man is strongly influenced by his environment, as will presently be shown, but, unlike the lower forms of life, he in turn can influence and partially change his environment. The various fauna and flora of different continents can only be explained in terms of differences in environment. Wheat will not grow in the tropics nor coffee in the Arctic regions. It was formerly thought that the white man could not live in the tropics, but through the recent sanitation program, which has been carried out in the Panama Canal Zone, and which reads like a romance of science, the tropics have been con- quered and made safe for the civilization of the nations of the temperate zones. Irrigation projects and railway con- structions, which cross over or tunnel through gigantic mountains, are additional examples of man's conquest of nature. By man's conquest of nature we do not mean that he has succeeded, like Ajax defying the lightning, in breaking any of the laws of nature, but rather that he has come to understand these laws and to use them construct- ively instead of letting them spend themselves in some destructive fashion. The discovery and utilization of fire is an illustration of the sort of conscious adaptation which marks man off from the lower animals. Centuries ago in the Great Glacial Period northern Europe and America were 8 Problems of American Democracy held in the grip of a great ice sheet. When the ice finally retreated many of the older forms of life had become Man's Adjustment — Roosevelt Dam extinct. These species had been unable to adapt themselves to the new conditions. Man survived and earned for him- self the name of the adaptable creature. Evolution is the story of unconscious adaptation or extinction. Progress is the record of conscious adaptation to avoid extinction. It took centuries of evolution to develop the woolly rhi- noceros, a creature suited to the Glacial Age. By his superior cunning, man slew this animal and dressed him- self in its warm skin. A Progressive Society 9 The Two Factors. — American society, we have seen, is dynamic. Consequently, the problem of adjustment, like Tennyson's brook, must go on forever. Each age has its own set of problems. For an ade- illustra- tions. quate study of these problems the factors of heredity and environment must be carefully considered. These are the two currents of social science. For example, the heredity of our American society is European, not Asiatic. Had it been the latter the development of our political institutions would probably have taken a different course. Again, environment played its part in American history. Suppose the Appalachian mountains had not run north and south but instead, east and west, along what we call the Mason and Dixon Line, — would the Union have survived the period of sectionalism? The two factors of heredity and environment may be illustrated again in the problem of crime. Is a given individual behind prison bars a criminal because of a bad heredity, such as feeble-minded- ness, or because of an unfortunate social environment, like that of Oliver Twist in the story by Charles Dickens? It is a common biological fact that like begets like and that the offspring resemble the parents in spite of indi- vidual variations. This is the factor in evolu- tion which insures the persistence of racial f heredity. traits. For example, a swarthy skin is char- Physical . . treats. acteristic of tropical races just as blue eyes characterize northern peoples. In the struggle for exist- ence, heredity tends to preserve those variations which have been shown to be favorable to a particular environ- ment. The unfavorable variations tend to be eliminated, and thus are not perpetuated. In the course of many cen- turies, the favorable variations tend to become the only io Problems of American Democracy surviving types. Not all traits, however, are transmissible. Acquired characteristics are those achieved in the lifetime of the individual and, since they are not inherent, they are not usually transmissible. Just as the son of a one-armed man will be born with two arms, so the strong biceps of the blacksmith will not necessarily be inherited. Weak eyes may be inherited but not the blindness caused by some explosion. Tuberculosis is a disease caused by a bacillus, and it is not inherited, as are the weak lungs which make possible the attacks of this disease. This distinction between acquired and inherent traits applies to mental as well as to physical characteristics. For Mental example, the problem of the feeble-minded in society is a grave one because feeble-mindedness is an inherent trait and will be passed on from generation to generation so long as feeble-minded people propagate, in spite of all the education we can give these unfortunate persons. Here the problem is not so much one of environ- ment as of heredity. A progressive society is seeking con- stantly and consciously to improve its biological heredity by the gradual elimination of degenerate strains. The non- transmissible character of acquired traits permits, to a certain extent, each generation to stand upon its own feet. Although this principle means that the culture of the ages must be learned over and over again by each succeeding generation, it offers hope to those groups that are victims of an unfortunate environment. By this law society has been prevented from retrograding and "the submerged tenth" in slum environments has not given birth to pro- gressively inferior offspring. The relative importance of heredity and environment has been frequently discussed, but with little unanimity of A Progressive Society 1 1 judgment. One might just as well seek to compare the importance of two such essentials as air and water. Recently, however, students of society have been emphasizing the importance of environment, t^ce'of This is largely a reaction against the older aristo- men™ n ~ cratic point of view, which overemphasized the importance of birth. The new movement began with the publication of the works of Lester F. Ward, the pioneer American sociologist. He pleaded for the democratization of knowledge, and believed human ability to be widespread. Genius is rare but crops out in humble and unexpected places. It is not necessarily the product of " Norman blood." Indeed, recent investigation has shown that some so-called "blue" blood does not represent the best biologi- cal heredity. The importance of heredity as a factor is not discounted, but rather the assumption of biological super- iority upon the part of certain races, classes, and families. We shall see that the term environment is used in two senses and may mean either the physical or the social environment. The next two chapters will discuss in turn the effects of each upon man and society. QUESTIONS FOR DISCUSSION i. Tell of some of the ancients who wrote concerning the social problems of their day. Are there many similarities between ancient and modern social problems? 2. Who were some of the pioneer writers in the social sciences? What did each contribute? 3. What do you understand by the "social sciences"? How do they differ from the natural sciences such as physics and chemistry? 4. What is the fundamental trio among the social sciences? Can these subjects be easily separated? Give reasons. 5. Do you expect this course to give you a definite solution for each social problem studied? Why or why not? 12 Problems of American Democracy 6. What do you understand by a dynamic society? How does it differ from a static society? 7. In what ways is America a good example of a dynamic society? 8. Do you believe that the world is getting better? What are you taking as good tests for social progress? 9. Compare evolution with progress. 10. Explain the meaning and operation of adjustment in society. 11. What are social maladjustments? Illustrate. 12. Show how man and nature mutually affect each other. 13. What traits are hereditary? Illustrate. 14. How has this law of heredity helped or hindered the progress of society? 15. Show how heredity and environment are the foundation stones upon which to build a study of social problems. TOPICS FOR SPECIAL REPORT 1. Plato's ideal republic. 2. More's Utopia or Langland's Vision of Piers Ploughman. 3. America, the dynamic society. 4. The social surplus. 5. Man's conquest of nature. 6. Non-transmissible character of acquired characteristics. REFERENCES Chapin, F. S. Social Evolution. CoNKLiN, E. G. Heredity and Environment. Kelsey, Carl. Physical Basis of Society. Nearing, Scott. Social Adjustment. Patten, S. N. New Basis of Civilization. Ross, E. A. The Changing Chinese. Ross, E. A. Sin and Society. CHAPTER II The Influence of the Physical Environment I. Importance of the physical environment i. Meaning 2. Examples II. Effects of physiography i. Resources and occupations 2. Accessibility 3. Isolation 4. Form of government 5. Other social institutions 6. Cultural and religious ideas III. Climatic influences 1. Temperature 2. Rainfall 3. Weather 4. The conclusion Importance of the Physical Environment. — By the influence of physical environment we mean the effect of nature upon man. The biologist could not un- Meaning. derstand the desert cactus or the polar bear without some knowledge of the peculiar environment of each. Similarly the student of society must know the tropical African background of the American negro in order to understand some of his present characteristics. Civilized man himself was originally a product of his physical environment. Some particular favorable element 14 Problems of American Democracy in nature gave the Egyptians or the Greeks an advantage over less favorably situated peoples. Favorable climatic conditions or abundant natural resources react upon the development of civilization. Although man may sometimes dominate his physical environment, modern as well as ancient civilizations are largely influenced by natural conditions. There is a custom among the Eskimos of putting to death their old and infirm parents. This illustrates the social effect of the physical environment which Examples. ........ a • t i is found in the rigorous Arctic climate where it is difficult to procure a living. Again, the Scandinavian immigrant, unaccustomed to the moderate climate found along the eastern coast of the United States, prefers the colder Northwest to which he can adapt himself. On the other hand, the negroes who migrate northward are not adapted to such a climate and would tend to die off in our northern states were their ranks not recruited by fresh levies from the South. Professor Boaz, after a series of experiments in which he measured the skulls of immigrants and those of their children, put forth, perhaps without sufficient proof, the theory that the effect of the new American environment can be seen in a physical change in the shape of the head due probably to a diet of softer food. If this be true, it is very significant, for length and breadth of skull are supposed to be the most permanent of physical characteristics. Effects of Physiography. — Natural resources include soil, mountains, rivers, minerals, animals, and plants. The great river valleys of the Nile, the Euphrates, Resources ° J ' < x and occu- and the Ganges were sufficiently fertile to sup- port a teeming population and thus became the cradles of civilization. The possession of forest lands rich The Influence of the Physical Environment 15 in timber for ship building, as well as proximity to the sea, made the Phoenicians great mariners. The occupations of a people are largely determined by natural environment. In one region men are fishermen, in another herdsmen, and in still another farmers. Each occupation develops its own type of culture. The story of ancient history is a record of the incursions of the warlike herdsmen upon the more peaceful and more highly civilized agriculturists of the plains below. Thus the invasion of Egypt by the Hyksos, or shepherd kings, lowered the civilization of that region. In ancient Greece there came into conflict the interests of the men of the shore (merchants), the men of the hills (shepherds), and the men of the plains (farmers). The location of a source of motive power is also important. The invention of the steam-engine placed the factories of Eng- land in the north where the great coal fields were located. Thus the centre of population was gradually shifted from the south of England to the north. This principle makes us wonder what effect the development of China's resources will have upon oriental civilizations. Rivers and bodies of water are the routes of war, of trade, and of civilization. The open door into central Europe was through the river valley of the Accessi- Danube, and up these plains swept successive y " waves of invasion. The present race mixture in the old empire of Austria-Hungary is the modern result of these invasions. Down the Rhine floated the civilization of the Christian monks. Later, this river became the trade route for the medieval commerce of the Hanseatic cities. Palestine was the highway for invading armies between Egypt and Persia. Its accessibility caused its repeated conquest by successive empires. Thus, because of fear of 1 6 Problems of American Democracy absorption, the people of this land have clung tenaciously to their national characteristics. Another result of accessi- bility may be seen in Greece. This small peninsula has the greatest sea-coast of any country of similar size. Thus no point was far from the sea and the people became a mari- time nation. They not only had access to the earlier, oriental civilizations, such as the Egyptian, but were also able to spread their own culture throughout the Mediter- ranean world. Rivers and seas, however, may also serve an opposite purpose and act as barriers to invasion. Thus England has often been saved from continental invasion be- Isolation. . . cause of its insularity. Witness the Spanish Armada and the futile attempt of Napoleon to conquer England. Mountain ranges are also great barriers. The Alps have been an obstacle to invading armies from Hannibal to Napoleon. Note how the physical map of Europe frequently coincides with the political, and how often mountains and rivers form the boundary lines of states. The general result of geographical inaccessibility is not only to prevent the disastrous invasions of barbarian peoples, but also to hinder the peaceful spread of a higher civilization and of a foreign culture. In mountain-walled Thibet the group culture has become stagnant because of lack of intercourse with the outside world. The Scotch- Irish settlers of our early American history were among the most energetic and progressive of pioneers. How then can we explain the present backward condition of some of their descendants, whom we designate as the poor whites of the southern mountains? The solution of the problem is found in the new environment. Shut in by the sur- rounding mountains, they have isolated themselves from The Influence of the Physical Environment 1 7 the culture about them, and the most primitive conditions prevail. Again, the climate, or rather the peculiar local environmental disease known as hook worm, has sapped their vitality and produced a peculiar type of laziness. The people of an inaccessible land feel little need for the protection afforded by strong government. Love of liberty, with perhaps a certain degree of lawlessness, seems to go along with a mountain environment, govern- . , ment. as illustrated by the Scotch Highlanders and Balkan patriots. Democracy is the spirit of the mountains and aristocracy that of the plains. Compare democratic Switzerland's initiative and referendum with the Junker party of agricultural East Prussia. Again, democracy seems to be fostered by the growth of commerce. Great plains may become the seats of successive empires as in Asia, but a land broken up by sea or mountain develops the political ideal of the city state of the Greeks and early Romans. Other social institutions besides the State are affected by geographical environment. For example, certain environ- ments favor the pastoral life which develops a patriarchal society. Here child-bearing is the social in- i . , , , stitutions. great duty and polygynous marriage becomes an accepted institution. In a rigorous and barren environ- ment it is difficult to support many children, with the result that the polyandrous family flourishes. Again, let us note the history of slavery in our own country. Negro slaves were to be found in all of the thirteen original colonies. Natural conditions in the North made the institution unprofitable, and legislative abolition voiced the popular feeling. In the South, however., where agriculture was the leading industry and where plan- 1 8 Problems of American Democracy tation life suited the local environment, slavery grew and flourished. A great civil war was necessary to decide whether a nation thus divided could endure. The Semi-Tropical Coast of Florida The national character of a people is also affected by its geographical environment. The awe inspiring aspects of nature in India, as revealed by the enormous an d mountain masses of the Himalayas, the ravages ideas? 113 °f the hurricane, of the tempest, and of the earthquake, as well as the fierce beasts and snakes of the jungle, inspire the inhabitants of that land with the feeling of fear and reverence rather than that of inquiry. Hence the religious spirit of that environment is depressing and awesome. Tradition is hard to break, as The Influence of the Physical Environment 19 the British government has found in its dealings with the natives. Greece, on the contrary, lacks the terrifying aspects of nature, and mountains and lakes merely give variety, beauty, and suggestion to the landscape. It is difficult to imagine Athenian culture growing up any- where but in its native geographical environment. The founders of the great monotheistic religions of the world — Zoroaster, Moses, Christ, and Mohammed — belonged to the semi-tropical and desert zones. Here the thinker is im- pressed with the oneness of nature, by the vast expanse of land and sea and sky. On the other hand, a people dwell- ing in a more varied environment of forest, stream, and hill tend toward polytheism. Trees are the homes of spirits and satyrs, while streams become peopled with nymphs and mermaids. Climatic Influences. — Physical environment sets cli- matic limitations to human habitation. Life in the Arctic regions is hard, and natural selection plays havoc Tempera- among fur hunters and gold seekers. Until ture " recent times the tropics have been fatal to the white man; but a scientific knowledge of the causes of disease and of methods of sanitation, as illustrated in the work of the Panama Canal Zone, is making possible a Caucasian con- quest of the tropics. At the present time, however, the temperate latitudes seem most favorable to the develop- ment of an advanced civilization. The heat belt, which was the seat of many ancient cultures, has contributed little to human advancement in the last thousand years. That civilization has advanced from the south to the north, as much as from the east to the west, is seen in the successive rise of empires from ancient Egypt to modern Britain. As man has become more civilized, he 20 Problems of American Democracy has been able to cope with a colder and moister climate. A moderate rainfall is just as important as a temperate climate. Too heavy a precipitation is favorable only to tropical forest and swamp. Too slight a rain- fall means aridity, and the pastoral industry is the one most possible because grass is the chief kind of vegetation. That population is scanty in dry regions may Rainfall. The Bleak Coast of Maine be seen by a comparison of two maps, the one showing the distribution of rainfall and the other of population. Com- pare the population of our western states with that along either coast, or the population of Arabia with that of India. There is an interesting explanation of the historical move- ments of peoples into Europe. According to this theory, The Influence of the Physical Environment 2 1 the original home of the Aryan race, having dried up be- cause of climatic changes, was no longer capable of sup- porting so large a population. Hence the various waves of migration and invasion which swept from the grass lands of western Asia into Europe. Local and temporary climatic changes are called the weather. Clear cool weather is invigorating, while damp- ness and high humidity are both depressing and The enervating. These effects are revealed by vary- weat er ' ing degrees of efficiency among employees and by the conduct of school children. Dry windy weather stimulates the nervous system and vitalizes human energy. This often finds expression in increased efficiency or in greater freedom of movement. The effect of the change of seasons may also be seen in the records of crime. Crime against property, like burglary, increases in winter, while crime against per- son, like murder, increases in spring and summer. From this discussion it must be evident that an under- standing of social movements is conditioned upon a knowl- edge of physical environment. This environ- The con- ment is continually manifesting itself in various clusion - phases of social development. Its influence is felt in the economic, the political, and the social currents of American life. For example, the economic greatness of America is the direct outcome of its almost boundless resources and its great variety of climate and temperature. Again, the political unity of American society is largely the result of its broad prairie lands and the prevailing trend of its mountain systems. Had its mountains extended directly from east to west, it is doubtful whether one civilization could have prevailed over sectional differences. On the social side, America's liberal ideas in various fields of 22 Problems of American Democracy activity are largely the result of the great sweep of the continent, of the accessibility of its shores, and of the ease with which new ideas are disseminated throughout the land. QUESTIONS FOR DISCUSSION i. Show how some plants and animals are adapted to their physical environment. 2. Give some illustrations of the effect of natural resources upon the occupations and life of a people. 3. What is the effect of rivers in opening up a country? 4. Give original illustrations from American history of this principle. 5. Illustrate the effect on civilization of nearness to the sea. 6. Name in order of importance several natural barriers. 7. Name a good and a bad result of natural geographical isolation. Illustrate your answer. 8. Name and illustrate the various ways that physical environ- ment may affect the form of government. 9. How are social institutions affected by natural conditions? 10. Explain the theory of the effect of natural environment upon the cultural and religious ideas of a race. 11. Can you think of any objection to the above theory? 12. What are the two natural elements in climate? State the effects of each. 13. How do you explain the fact that the earliest civilizations were in warm countries and the modern great nations in temperate lands? 14. How does rainfall affect density of population? 15. What theory accounts for migrations such as that which led to the overthrow of the Roman Empire? 16. Illustrate from your own experience the effects of the weather. 17. Sum up the influence of nature upon American civilization. TOPICS FOR SPECIAL REPORT 1. The fertile river valleys of the Nile and Euphrates. 2. The Rhine and Danube rivers as waterways for invasion, civilization, and commerce. The Influence of the Physical Environment 23 3. Effects of the insularity of England. 4. The Alps and the history of Italy. 5. The Allegheny Mountains as an early barrier to civilization. 6. Climatic influences upon crime. 7. The conquest of the tropics by medical science. REFERENCES Chapin, F. S. Social Evolution. Chapter V. Dexter, E. G. Weather Influences. Hayes, E. C. Introduction to a Study of Sociology. Chapter III. Huntington, E. Pulse of Asia. Civilization and Climate. Kelsey, C. Physical Basis of Society. Chapter I. Semple, E. Influences of Geographical Environment. Thomas, W. I. Source Book for Social Origins. Part I. CHAPTER III The Influence op the Social Environment I. The burden of tradition i. The social environment 2. Origin of folkways 3. Some survivals 4. Varying customs 5. The widening circle : a. Through conquest b. Through revolution II. Other social forces 1. Imitation 2. Fashion III. How the crowd acts 1. Influence of suggestion 2. Characteristics of the crowd 3. Importance of social control 4. America's position The Burden of Tradition. — The atmosphere of custom into which every child is born is fully as important as the . physical environment of which we spoke in the x n6 Social environ- preceding chapter. The social environment sur- merit. rounds us as completely as the physical. In our study of social phenomena, we must take into consideration not only the influence of nature, but also that of our fellow men, both in the past and in the present. Tradition envelopes us like a cloud, unconsciously determining for us almost everything we do, from the language we speak to the dress we wear. Individuality is limited and represents 24 The Influence of the Social Environment 25 but a slight variation from the customs of the group. We take almost everything as we find it and accept the group traditions from democracy to base-ball. We regard other social systems as inferior to our own, just as their followers look upon ours in the same light. Thus, the Japanese, who place the duty of the son to the father on a higher plane than his duty to his wife, regard their moral codes as superior to our moral and religious systems. As the child learns the mother tongue, so he imbibes the customs and moral ideas of the group, regarding them finally as his own. The individual mind is but a part of the group mind. Because custom plays such an important part in group life, it is well to inquire into its origin. After long and crude experimentation, primitive man arrived at a origin of useful invention or a successful method of doing ° ways ' a thing. This particular method was imitated by the rest of the group and, unconsciously or consciously, became the customary method or folkway. After centuries of uniform action, the constant repetition of this particular method made it as binding upon the group as habit is upon the individual. For illustration, a way of building a canoe was hit upon by some individual and followed by the rest of the group. It satisfied a social want and for a long time no further discoveries in boat building were made. That par- ticular type of canoe became the model for the group, and other types were regarded with suspicion. Thus, the group tends to develop certain customary ways of doing things which become fixed and binding upon all the individuals in the group. In this manner loyalty to the group is judged by conformity to its customs and traditions. Innovations are frowned upon and further progress hampered, until the group civilization becomes static or even stagnant. 26 Problems of American Democracy Again, folkways often originate from false inferences. An Eskimo, who happened to have the bone of a dog with him upon the hunt, was successful in an undertaking. Primi- tive man does not reason logically, but draws a conclusion by the most direct inference. Hence, in his mind, the hunt was successful because the hunter had carried with him a dog's bone. Others imitated, a custom grew up, and be- came a folkway among these people. This is comparable to the ignorant man of to-day, who ascribes luck to a horse shoe or to a rabbit's foot. Indeed, Some the source of most of our modern superstitions survivals. g Qes j-^^ ^ a De ii e f in spirits and to the folk- ways of our untutored ancestors. Hallowe'en is a night of frolic and pleasure, but the origin of this holiday was the serious business of appeasing the evil spirits according to the charms and rituals prescribed by the folkways of the group. If asked the reason for any particular ceremony or procedure, the answer was: "Our fathers did this before us." Fear of the displeasure of dead ancestors was suffi- cient to prevent any innovation. The scope of the folk- ways ranges from the regulation way of making a fire to the tribal laws of royal succession. No study of a society would be complete without some mention of them because they reflect the life and thought of the group as well as the influence of environment. Tradition is an important and significant phase of the social or group mind crystallized into what Bagehot calls "a cake of custom." Each group thinks its own folkways right and laughs at the customs of the foreigner. We think it impolite to Varying make a noise while eating, but the Indian would deem it a slight to his host not to smack his lips as a sign that the meal had been enjoyed. The Christian The Influence of the Social Environment 27 takes off his hat in church, but the Mohammedan his shoes. Our moral ideas are, strictly speaking, not our own, but rather those of the group in which we live. We look with horror upon the Eskimos whom we have described as killing their aged parents, but they regard such action as a serious moral duty when old and infirm people become a burden to the group. We have been taught toleration and sympathy, but had we lived some centuries ago, we should have rejoiced at the burning of heretics and thought that such sacrifices pleased God. Each group, therefore, has its own collection of folkways and moral ideas which it believes to be the best and the truest. Thus the "cake of custom" is hard to break. It may be done, however, by forces from ing circle : within or by forces from without, by internal Throu s h J ' J conquest. revolution or by foreign conquest. In other words, tradition may be broken by changes in environment. In the past the method of conquest has been the more com- mon. Each group cherishes its own folkways so highly as to be willing to fight for them. It will resist to the last ditch the invading "barbarians" or will seek to spread by force of arms its own civilization. Thus Alexander the Great spread Grecian civilization in the East, and the patient Roman soldier carried the Latin tongue and culture from the Tiber to the Thames. So to-day our own genera- tion witnessed the titanic struggle between the advocates of Teutonic "Kultur" and the proponents of Anglo-Saxon liberalism. Often, however, the civilizations of invader and invaded fuse and a resulting culture is imposed upon each. Internal revolutions are violent changes in the folkways, which are shattered in favor of more liberal ideas. It is '28 Problems of American Democracy difficult, however, to force such a change. Peter the Great found trouble in westernizing Russia, while the French Rev- Through olution resulted in frightful carnage and vandal- revohaion. j sm j n QUr Qwn day ^ ^ R uss i an Revolution is an heroic attempt to shatter centuries of crystallized ideas and traditions. By the bloody path of war and revo- lution, history has progressed and modern man has become heir to the culture of all ages and civilizations. Knowledge of other cultures should rid him of group provincialism, while liberal education should free mankind from the bonds of superstition and ignorant worship of tradition. Other Social Forces. — We have seen how imitation has worked as a conservative force to preserve the folkways of the fathers. It may also work as a progressive Imitation. . . force to spread inventions and new ideas when once originated. The laws of imitation were first studied by a Frenchman named Gabriel Tarde who was puzzled by the repetition of certain crimes. Among other laws he found that imitation is greater in a densely populated region where means of communication are good. Thus, a new Parisian style of hat or a new English novel may be found almost immediately in American homes. News of war with Japan, however, took a long time to spread throughout the thinly populated and remote parts of Siberia. Fashion represents the changing or transient aspect of the social mind, just as folkways or custom represent its per- manent side. Fashion does not show a steady Fashion. progress, but rather a series of cycles. Thus the short sleeve succeeds the long sleeve, and the furniture of our grandfather once relegated to the attic has again become fashionable. The origin of style seems to lie in the instinctive desire for personal adornment and the wish to The Influence of the Social Environment 29 be distinguished from the common crowd. Thus Occidental ladies pierce their ears, and Orientals their noses. Another law of imitation is that the masses tend to copy after the classes. Therefore, fashions represent the lesiure class ideals rather than those of work and service. The Chinese ladies bind their feet and thereby become incapacitated for degrading physical labor. A style spreads rapidly until it becomes common. Then it is abandoned by its sponsors because of numerous imitations. It is necessary for the safety of democracy to suppress the extravagant fashions of the wealthy and, at the same time, to stimulate the development of practical folkways and social customs among the masses. How the Crowd Acts. — Suggestion is a phase of the social mind associated with imitation. It is one mind acting upon another. Like imitation, it increases with the degree of association, so that it is of sug- gestion, greater in crowds than among a few individuals. Suggestion is the secret of hypnotism and of many supposed miracles like those of the Hindoo fakirs. It is heightened by abnormal states of mind, such as hysteria, or the fatigue brought on by continuous fasting. It is stronger where there is a lack of scientific knowledge. The prophet Mo- hammed, the dreamer of dreams, saw a vision which he communicated to the ignorant and emotional Arabs among whom he lived. As the story spread, it gained credence from an increasing number of believers, so that Islam finally spread from Persia to the Pyrenees. Children are more susceptible to suggestion than adults, and the skillful teacher realizes the power and danger of this device. It is the secret of hero worship, and often the source of power wielded by the leader over the credulous multitude. 30 Problems of American Democracy It is in the crowd that the power of suggestion is greatest. Thus, during the Great Plague in London, when heaps of dead bodies lay in the street accentuating the istics of terror and imagination of the crowd, heighten- the crowd. . ing the power of suggestion, Defoe tells us how one individual pointed to a white cloud in the sky, calling it an angel and declaring that it was robed in white and armed with a sword. Immediately, by suggestion, the illusion spread and all believed and were afraid. The credulity of a crowd is incredible. History furnishes num- erous examples, such as the preaching of Peter the Hermit, when thousands followed the example of those around them and shouted for the sign of the Cross. Like a contagion, the crusading movement spread. Another characteristic of the crowd is the loss of a sense of individual responsi- bility. In a mob the individual can be led on to undreamed of deeds of violence, such as the lynching or burning of innocent or untried victims. The excitement and emotional- ism of the crowd may be seen in war times as well as in great religious revivals. The crowd feels and acts, but it cannot deliberate and reason. When it does so, it ceases to be a crowd and becomes a deliberative assembly. The crowd is unstable and cannot last. Rallying quickly around anyone capable of temporary leadership, it will disappear after the crisis as quickly as it was formed. A final char- acteristic of a crowd is its fickleness. On one occasion it will cry, "Hosanna in the Highest" and, on another, "Crucify Him, Crucify Him!" By a process of education it is necessary to build up an individuality strong enough to withstand the influence of the crowd and the magic of its demagogue leader. The sensational newspaper, which prints the harrowing details The Influence of the Social Environment 3 1 of crime, wields a sinister power of suggestion to further crime. Social control can be developed only through the avoidance of sensationalism and through a con- , ° Importance structive program of sane teaching, intellectual of social . • • t r control. self-possession, and the creation of the feeling of responsibility. An intelligent public opinion, which soberly discusses questions of the day, is the sole hope of a democ- racy. It represents the most advanced stage of the social mind, just as the mob is the lowest form of association. Social control is the collective or group mind, uninfluenced by the magic of suggestion or the blindness of imitation, intelligently cognizant of a course of action best suited to the welfare of the group. A society, free but incapable of self-control, brought about the excesses of the Reign of Terror. On the other hand, a society kept in order by the iron hand of autocracy had its Bastille or its Siberia. The aim of social progress is the development of a group capa- ble of controlling itself in peace, liberty, and intelligence. This is the problem of social control. It is interesting to examine the problem of social control in American democracy. Just as the United States is characterized on the physical side by varied and America's almost boundless natural resources, so the P° sltlon * nation, on its social side, is distinguished by freedom from age-long restrictions upon national habits of thought. In other words, America, unlike most European civilizations, is not unduly hampered by worn-out national traditions. It is true we have our democratic traditions transplanted from England, our Federal Constitution, and our own in- digenous Monroe Doctrine. But, as compared with other world powers, America lacks the countless fixed ideas and customs that so largely determine the actions of older 2)2 Problems of American Democracy civilizations. For this very reason, the problem of social control is fraught with grave difficulties and dangers in America. We can, therefore, easily understand why so many "newfangled" ideas in all lines — political, economic, and social — take root so easily in this country. What America needs more than anything else, in order to accom- plish a sound policy of social control, is the establishment of some stabilizing influences in harmony with our national aspirations. QUESTIONS FOR DISCUSSION i. What are folkways? 2. How do they arise? 3. What come out of folkways? 4. Why is a study of a nation's folkways important? 5. Trace to their origin some superstitions of to-day? 6. What is the social environment? 7. Show its moulding power upon the individual. 8. Show how the ideas of right and wrong vary with different groups. 9. Is the standard of morality determined by the group? Illustrate. 10. How are local customs broken and how do new ideas spread? 11. How are civilized man's customs superior to those of savages? 12. What is meant by a "cake of custom"? By the "melting pot" of civilization? 13. Give some laws of imitation. 14. Contrast fashion and custom. 15. Show by illustration how fashion moves in cycles. 16. Show the danger of having our ideals and fashions set by a moneyed leisure class. 17. What is the social mind? 18. Show how suggestion works. 19. Under what circumstances can suggestion be seen to best advantage? 20. Name the characteristics of a crowd. 21. How can the mob spirit be avoided? The Influence of the Social Environment 33 TOPICS FOR SPECIAL REPORT 1. Some American customs and national traditions. 2. An interpretation of the customs of some primitive people. 3. The attempt of European nations to civilize their colonial possessions, i. e., to impose a different set of folkways upon them. 4. The French Revolution and social changes. 5. Tarde's "Laws of Imitation." 6. Conflicting ideas of beauty and dress in different parts of the world. 7. Laws of fashion. 8. A personal experience illustrating principles of mob psychology. 9. Personal experiences illustrating power of suggestion. REFERENCES Bagehot, W. Physics and Politics. Chapest, F. S. Social Evolution. Chapter VI. Ross, E. A. Social Psychology.. Chapters II to VI inclusive. Ross, E. A. Social Control. Ross, E. A. Principles of Sociology. Sumner, Wm. G. Folkways. Chapters I and II. CHAPTER IV Early Group Life I. Social evolution i . The antiquity of man 2. The forces at work: a. Competition — struggle for existence b. Natural selection c. Cooperation II. Life of primitive man i . Sources of knowledge 2. Neanderthal man 3. Early characteristics III. Achievements of the past 1 . The process of invention 2. Examples: a. Tools and implements b. Discovery of fire c. Domestication of animals d. Agriculture e. Clothing /. Language 3. Development of social institutions Having examined the effects of both the physical and the social environment upon the institutions of society in general, it is now our purpose to trace briefly the early his- tory of group life and its gradual development into that commanding institution known as the State. It is neces- sary to undertake this study in order to grasp clearly the 34 Early Group Life 35 origin of the American State and the forces that lie back of our political, economic, and social development. Social Evolution. — The human species is old, and the thread of its history carries us far back into the dim past. The prehistoric period of mankind is many Thg times as long as the historic. If we let the antiquity of man. width of a man's thumb represent the time that has elapsed between the present and the grey dawn of his- tory as told by the pyramids of Egypt the length of a walk- ing stick might well represent the age of the human species. A line to represent the age of the earth's crust, which is roughly speaking the period of biological evolution, would stretch a distance of several city squares. Professor Robin- son makes a similar comparison, using the dial of a clock to show the length of the prehistoric period. Biological evolution is the story of the development of life from the lower to the higher forms, from the simple to the complex. Social evolution is the story of the development of group life from the simple to the complex, from the wandering tribes of hunters of centuries ago to the highly organized industrial states of to-day. The twin forces of competition and cooperation can be seen at work to-day, even as in the past, not only in human society, but in the lower forms of life. Both Forces at forces have played important parts in social and work : x Competition — biological evolution. Let us see what they are. struggle for The world of nature is only apparently calm and " peaceful. Underneath the supposed contentment there rages a ceaseless struggle for food, air, sunshine, and space. If every acorn grew to be an oak, the dry land of this world, in the course of a few hundred years, would not be sufficient space for the growth of all the oak trees. For 36 Problems of American Democracy every starfish living, nearly half a million die annually. Millions perish and countless numbers must be born in order to insure the perpetuity of the species. The fact that the struggle for existence is keenest in the lower forms of life explains their greater productivity. It is necessary for survival. In the struggle for existence, in which the great majority of organisms perish, some survive. The stronger and those Natural better adapted to their environment survive, selection. -while the weaker and unfit are eliminated. This is called natural selection or the survival of the fittest. Out of the numerous variations or types, nature selects the organisms having the qualities most favorable to survival in a particular environment. Natural selection may be seen working among colonists in a strange land of rigorous climate in which only the hardiest can survive. The func- tion of natural selection is to weed out the unfit or the poorly adapted, and thus constantly to raise the type or adapt it to the environment. The old mastodons, whose skeletons we find in museums, were fitted to the marshy environments of thousands of years ago. Failing to adapt themselves to the new environment, they perished. In his early history, man won out in the fiercest struggle for existence because of his superior intelligence, which enabled him to trap and slay the larger animals among which he lived. Competition was a factor in social as well as in biological evolution, for there was a constant struggle be- tween groups. History is strewn with the wrecks of past civilizations and archaic institutions. Cuneiform inscrip- tions dug up in the Tigris-Euphrates valley tell a morbid tale of centuries of war between rival city-states, each with its own set of folkways and deities. Again, competition Early Group Life 37 operated within the group as well as between groups. Leaders competed against other leaders, class against class, and folkways against folkways. To-day, natural selection still operates in the form of competition between individuals and groups of individuals. Although within civilized groups, few perish from starvation or are ruthlessly killed by their fellows, yet many are forced into the lower or poverty classes in society. Artificial regulations, like the laws of property and of inheritance, often prevent many individuals from actually facing this fierce struggle in society. Opposed to the emphasis laid upon the principle of the struggle for existence in the development of man, is the im- portance of the idea of cooperation in bringing Codpera- about social advancement. The advocates of iwn ' this principle object to the idea of a cold hearted struggle for existence and substitute, or rather add, the principle of altruism or the struggle for the lives of others. There are many evidences of this force at work in society. For ex- ample, as we ascend the scale of life, the period of infancy becomes longer and maternal care more necessary. Fish merely deposit their eggs and leave them to their fate; but a higher type, the mother bird, not only hatches her eggs, but also watches over her young fledglings. The period of human infancy lasts for many years, and the increased maternal care is the source of altruism and of much that is spiritual and sympathetic in the human breast. Thus, the source of altruism is the rearing of off- spring, and the resulting family group is the generator of cooperation. But the struggle for existence is not elimi- nated by cooperation. This force makes competition a group struggle rather than an individual one. It is a 38 Problems of American Democracy superior adaptation and enables one group, possessing greater social solidarity, to compete more successfully against another group, not so well organized. Remarkable cooperation may be seen in some of the lower forms of life, as for illustration among bees and ants. Wild horses live in herds and thus protect themselves against the wolves. At the signal of danger, the colts are gathered in the center, the horses surround them and present a ring of kicking hind-legs to the foe. Life of Primitive Man. — Having sketched the twin forces of competition and cooperation, which have been Sources of constantly operating throughout the ages, let knowledge. ug ^ nQW to pi C £ Ure primitive man and his early group life. Fossil remains of primitive man afford good evidence of his appearance. Likewise, a knowledge of his early environment furnishes additional evidence of his life and activity. Finally, primitive races of to-day show us what our own ancestors were like centuries ago. From these three lines of reasoning, we are able to re-create primi- tive man in our imagination. Let us take, for illustration, the primitive type of Nean- derthal man, so named from the valley in Germany where Neander- his remains were first discovered. Similar dis- thai man. CO veries have since been made in caves from France to Hungary, and we infer that Neanderthal man was a common type centuries ago in Europe. Skeletons of the mammoth and woolly rhinoceros found with him seem to show that he lived in the great Ice Age. There have been discovered sufficient of his own bones to give a fairly good description of this early man. Neanderthal man was short and massive in structure and of powerful frame. The thick bones show large muscle attachments and we infer Early Group Life 39 that he was therefore strong and muscular. He must have been a thick-necked individual carrying his head tilted slightly backward. The joints show that he walked up- right with a slight bend at the knees. Neanderthal man was just becoming accustomed to a permanent upright posture and walked with a shuffling gait. Such was the ancestor of a large number of present European peoples. Fossil remains like those on the island of Java show a more primitive type. On the other hand, skeletons like the Essex woman or the Galley Hill man ap- Early char- proach more and more closely our own type. actenstlcs ' The massive jaws and teeth of primitive man indicate that before the discovery of fire his diet must have been a tough one. The large and powerful arms were adapted for climbing to escape the beasts of prey. Huge digestive organs were necessary since primitive man gorged himself after the successful hunt because it might be a long time before more food could be obtained. Tough and hardy, the survivors were able to endure the pain and exposure which killed off the weaklings. Although possessing great natural powers of observation, primitive man's reasoning power was limited like that of the modern savage. He was a good imitator, however, and many of his earliest inventions were copied from the animal world. His interpretation of the phenomena of nature was the simplest and most direct. The running brook in which he saw his own shadow or other self and the whistling wind were to him indications of the numerous spirits always hovering about him for good or ill. Achievements of the Past. — The accomplishments of primitive man in the long prehistoric period are often re- ferred to as social origins. They are good illustrations of both mental and social evolution, since they show the in- 40 Problems of American Democracy creasing power of human intelligence and an increasing degree of cooperation in group activities. Such a strenuous environment as that in which primitive man lived was fraught with constant danger and calculated to stimulate the development of mentality. Man The process m c J m of inven- finally triumphed over his fierce animal rivals by the crude inventions of his dawning intelligence. These were at first more accidental than conscious, although a useful dfevice was remembered and imitated. Finding that a tree which had fallen over a stream was an excellent means of crossing, primitive man imitated in other places by dragging a log in position and by this operation invented the first bridge. However, the achievements of man were more or less conscious as compared with those of the lower animals, like the nest-building of birds. Early man relied more upon intelligence than upon instinct. Again, the process of invention was accelerated and be- came more conscious as early civilization advanced. But the great purposive inventions of to-day rest upon the accidental discoveries of prehistoric times. Thus the modern steam-engine would have been impossible without the discovery of fire, somewhere back in the long-forgotten past. The twentieth century "sky-scraper" is but the latest stage in the evolution of housing, which began long ages ago when a half naked savage built a rude shelter for protection from the wind and rain. The child of to-day is the heir of the ages, but primitive man had to learn every- thing from the beginning. Let us then trace a few of the most notable examples of man's primitive achievements. The earliest implements in use were the club and pointed stick. The bow and arrow constituted as great a discovery for primitive man as gun- Early Group Life 4i Primitive Man Making a Fire Courtesy of American Museum of Natural History, New York 42 Problems of American Democracy powder for the men of the modern world. Man learned to work in stone and to chip it down to form a cutting edge. Examples- Thus we speak of the rough stone age and of the Tools and age of polished stone which covered long years of implements. n . . . . . . . prehistoric time. It is only within a compara- tively recent period that we reach the age of bronze and, finally, that of iron and steel. The discovery of fire made cooking possible. Primitive man, like many savages to-day, was accustomed to raw Discovery food. The Fuegians, for example, often eat their of fire. ggk raw as f-jjgy take them from the water. How fire was discovered is unknown, but many legends, like that of Prometheus, seek to explain its origin. It made possible the camp fire for the center of tribal life, and the hearth fire for family gatherings. Primitive man slowly learned that it was poor policy to kill more game than was actually necessary. By keeping some animals alive in captivity, there was created a Domestica- r J ' Hon of constant source of food, and man was no longer animals. ■ dependent merely upon the chances of the hunt. The domestication of the dog resulted probably from man's desire for company and amusement. A pastoral life necessi- tated wandering from place to place in search of new fields. Hence, for the safety of the migratory group, there was de- veloped a closer organization as illustrated by the patriarch Abraham of the Old Testament. As we pass from the hunting and fishing to the pastoral stage, a higher civilization prevails. Agriculture was accidentally discovered through the falling of seeds upon the ground of the camping places. The agricultural stage represents an advance over the pastoral. It calls for a more settled life, while a given area is capable of supporting a larger Early Group Life 43 population. This means a greater degree of association, resulting in greater division of labor and greater mental stimulus. Hence the thickly settled river valleys of the Nile, and of the Tigris and Euphrates, were the birthplaces of civilization. Clothing did not originate so much from the feeling of modesty, or from the need of climatic protection, as from the desire for personal adornment and visible distinction. At first the skins of animals served as a covering, but later came the utilization of the native fibres of the various localities. Weaving and the art of pottery are good illustrations of woman's share in primitive culture. Although speech is regarded as a purely human acquisi- tion, the lower animals have certain sounds and cries familiar to their fellows. The origin of human speech has been explained by a number of dif- ferent and fanciful theories. Whatever the origin, its progress has been wonderful. The increasing ideas and needs of civilization have resulted in a corresponding in- crease in the vocabulary. There are some savage tribes of to-day whose language embraces but a few hundred words. In comparatively recent times, the device of writing was invented. The first attempts are known as picture writing. This was succeeded by the use of characters to represent words or syllables, as is shown in the development of Egyptian hieroglyphics. Finally, an alphabet was invented, later carried to Europe by Phoenician mariners, and thence spread all over the western civilized world. The material inventions of primitive man make a fasci- nating story, but represent only one phase of social evolu- tion. The gradual development of social institutions is 44 Problems of American Democracy equally important. Social institutions may be defined as those recognized customs, conventions, and associations which have the support and approval of society, ment of" There are also other forms of association not stitutions. sanctioned by society, arising sporadically and lacking in permanency. If the individual takes part in these non-sanctioned forms of association, he incurs the displeasure of society and often becomes a social outcast. Therefore, every normal member of society seeks activities and associations approved by the society in which he lives. After the lapse of ages, these forms of association and ideas of living become crystallized into social institu- tions. It is hardly necessary to add that social institutions vary in different parts of the world and in different stages of human development. Among the great social institu- tions of to-day are the family, the state, the church, the school, and industrial society. The source of these funda- mental social institutions lies far back in the prehistoric period. In moulding them natural selection produced dis- similar results in various places and times. Different ages and different peoples adapted them to their particular physical and social environments. QUESTIONS FOR DISCUSSION i . Compare the length of historic with prehistoric times. 2. What do you understand by social evolution? 3. Explain the part played by the struggle for existence in early society. 4. Show how natural selection worked in primitive times. 5. Explain the part played by cooperation in social evolution. 6. Can altruism threaten the future progress of society? Explain. 7. Sketch the life and characteristics of primitive man. 8. What are some of the chief contrasts with modern traits? Early Group Life 45 9. What was the appearance of Neanderthal man? 10. Discuss the process of primitive invention. n. Give some of the achievements of primitive man. 12. Which of these do you regard as most important for his future progress? Give reasons. 13. What is a social institution? Name the principal ones. 14. Do you regard the material achievements or the social insti- tutions as early man's greatest contribution to civilization? Why? TOPICS FOR SPECIAL REPORT 1 . Competition and cooperation in economic society to-day. 2. The Darwinian theory of evolution. 3. Fossil remains of prehistoric man in Europe. 4. Cooperation or mutual aid among the lower forms of life. 5. The discovery of fire and its importance. 6. Theories of the origin of language. 7. Intelligence versus instinct in early life. REFERENCES Chapin, F. S. Social Evolution. Chapters II and III. Drummond, H. Ascent of Man. Hayes, E. C. Introduction to a Study of Sociology. Chapters XVII and XVIII. Kelsey, C. Physical Basis of Society. Chapters II— V inclusive. Osborn, H. F. Men of the Old Stone Age. Robinson, J. H. The Mind in the Making. Sollas, W. J. Ancient Hunters and Their Modern Representatives. Thomas, W. I. Source Book of Social Origins. Wells, H. G. The Outline of History. Vol. I. CHAPTER V The Evolution of the State I. Nature and origin of the state i. Definition 2. Origin: a. Fanciful theories b. The sociological view II. Functions of the state i. Primary 2. Secondary- Ill. Stages of development i. The patriarchal family 2. The gens or clan 3. The tribe 4. The city-state 5. The nation IV. Institutions related to the state 1. Nature of war: a. Causes b. Results 2. Rise of slavery 3. Development of law and property Nature and Origin of the State. — The State is one of the oldest and most commanding institutions of society. . It is a society organized politically for the pur- pose of preserving the group and of protecting the individuals composing it. We may define the State a= 46 The Evolution of the State 47 a community of people inhabiting a definite area, fairly well unified under some sort of government, and ruled by officials under a body of written law or in accordance with unwritten custom. Its purpose is social control for the common good through organized cooperation. The origin of the State is difficult to trace because of its divergent roots and because of the numerous fanciful theories that obscure its early history. Almost 0rigin . every people has its tradition of an ancient law- Fanciful giver, like the Greek Draco or the Roman Numa. These wise men, if they ever really existed, did not give to the people by divine inspiration a new and brilliant code of laws, but merely collected and put into written form the customs and traditions of many generations. Each nation looks back to some mythical hero, claiming him as its founder. Thus Rome had its Romulus, and England its Arthur. Later in history appeared the Divine Right theory of the State by which kingship was viewed, not as a political development, but as a divinely ordained institu- tion. Under this view the Church and the State could not be easily separated. The English Stuarts claimed their power from God, and in France so absolute was this type of government that Louis XIV could say, " I am the State". This view of the State was followed by the Social Con- tract theory of such philosophers as Hobbes, Locke, and Rousseau. It was claimed by these writers that man- kind originally lived in a state of nature characterized by war, confusion, and individual liberty. In order to secure protection, the people voluntarily surrendered this natural liberty to some chief whom they selected to rule over them in order that they might enjoy peace and civil liberty. 48 Problems of American Democracy The foregoing theories were the products of tradition, or of a speculative philosophy, or of the desire to justify The socio- despotic rule. The true origin of the State, how- logtcai mew. everj j s no i t ]-, e found in such simple explana- tions. Its basis lies in man's social instinct, that is, in his inherent desire for the companionship of group life. An- other factor is the principle of cooperation, which developed group solidarity in the conflict with other peoples. Slowly there developed from early family life the beginnings of the modern State. It was a gradual development of political control made necessary by the attempts of men to live together harmoniously within a given area. As the patri- archal family expanded, there was, however, no conscious effort to build up a State. Custom unconsciously developed into law, and the patriarch into king. War, since it re- quired organization for successful prosecution, furthered the evolution of the State. The temporary leader in battle tended to become the permanent chief. Again, in times of peace, the enforcement of group folkways and customs made authority necessary. This authority was more re- ligious than political, but in primitive society there was little differentiation between Church and State. Functions of the State.— The primary function of the State is to protect its members in the enjoyment of their Primary rights of life and property. As we have seen, this functions. wag one reason f or ^ s origin. When the State can no longer afford protection from foreign attack, it ceases to exist and confusion reigns. The fall of the Roman Empire was succeeded by feudalism, and the individual looked to his nearest and most powerful lord for protection. Internally the function of the State is to preserve the social order ; that is, to protect each member of society in the enjoyment The Evolution of the State 49 of his rights. It must hold in check the unsocial individual who would infringe upon the privileges of others. Thus the State is the guardian of property and regulates its trans- fer and inheritance. It seeks to define crime and also to punish it by the administration of justice in its courts. With the decline of the functions of the early family, the power and activity of the State have increased. The modern ruler, taking the place of the patriarchal secondary father, governs a great community stretching unctlons « over an enormous area. The function of protection ex- pands into diverse forms of which our early ancestors had no conception. Thus, the State now regulates trade and industry, coins money, establishes standards of measure, and formulates tariffs. The regulation of transportation, of the public health, and of sanitation has come within its jurisdiction as well as the control of education which for- merly rested with the Church or the school. Lastly has come the care of defectives and dependents, for whom little systematic provision was formerly made. With the growth of industry and the increase of population, the modern State has become almost paternalistic. Thus the functions and powers of the State have increased with the growing culture of society. The ideal of citizenship is becoming that of social service. Stages of Development. — The two roots of the State lie in kinship or blood-relationship and in the institution of private property. The State grew up with the development of the idea of private property, for archai , . . family. whose protection government came into exist- ence. Kinship is the other basis of the State, for the patriarchal family expanded into the gens, the phratry, the tribe, and finally the nation. The primitive social group or E 5lan ' taken his idea from ancient Babylon. This scheme is simple and systematic, but it often causes congestion on the few streets that lead into the central business section. The best plan, perhaps, is to map out the city in the form of a wheel. Its central civic center would correspond to the hub and the main streets to the spokes, while the cross streets would be a series of rings. The construction of buildings should then be planned in accordance with principles of architectural beauty and symmetry. Munic- ipal buildings might well be grouped in the civic center, where the wide avenues and broad boulevards converge. Ample provisions should be made for squares, parks and public places, which serve not only as sources of communal pleasure but also as essential factors in public health. Suburbs for the working man at low rentals are more needed in the modern city than villas for the richer group. n8 Problems of American Democracy Such a scheme in connection with a system of cheap and rapid transportation will materially help to solve the problem of mass congestion. This has been tried in certain cities of England, where a special commutation rate to workers has enabled them to live in the outskirts of the city. This plan seeks to prevent, rather than to cure, the problem of congestion. The growth of cities has been attended by a development of the so called "slum" districts. In them the housing Housing conditions are such as to arouse alarm for the conditions: physical and moral condition of their inhabi- tants. The basis of this problem, like many others, is economic; for, as the city increases in population, real estate rises in value. The result of this tendency is a greater density of population in a given area. While the city has grown outward in many districts, it has likewise grown upward in others. Of this the modern " sky-scraper " is witness. What has happened in the business section has also taken place in the congested living quarters of a great metropolis. Thus the tenement house has sprung into existence. This is a large building or series of buildings several stories high and capable of accommodating a large number of families. The law in New York defines a tenement house as the residence of three or more families, each independent of the other and each providing its own cooking facilities. In fact, the number of cooking stoves is often used to determine the number of families. The tenement house has arisen in many of the formerly fashion- able quarters of the city now converted into business sections. As the former inhabitants have moved out, the poorer groups, often foreign immigrants, have occupied their homes. These old houses, many of which are fairly The Growth of Cities 1 19 large, are used to accommodate a number of families. Con- gestion may also result from the occupancy of old shacks in alleys unfit for human habitation. The problem of housing is aggravated by the existence of the lodger. We have seen that with the foreign immigrants the number of men predominates. Many of these laborers may room together or become lodgers with one family. Desire for gain is strong among this group and that, as well as poverty, has led to very low standards of living. Housing commis- sions and various charity organizations have discovered some alarming facts. Two or more families often occupy the same room, while many beds are never free from human burdens. Congestion and bad housing conditions affect not only physical health but moral character. In the first place congestion results in the spreading of con- tagious diseases, while lack of air and sunshine The results. permits the spread of tuberculosis. "Band- box" houses of one room upon another, situated toward the rear of high buildings, possess no adequate facilities for light or ventilation. Another common evil is the lack of water and of a proper system of drainage. Many families use but one hydrant, and the amount of washing enjoyed bears a direct relation to the adequacy and nearness of the water supply. Drainage facilities are so inadequate that refuse water is often emptied into a back yard, which also serves as a dumping ground for garbage, ashes, and rubbish. Toilet facilities are extremely inadequate. Flies become efficient carriers of disease, while bacteria flourish in the dark, damp, and unclean environment. Infant mortality runs high in congested quarters, where hot summers and cold winters reap a full harvest of human life. The moral 120 Problems of American Democracy dangers of congestion, although perhaps less apparent, are none the less real. In one small room, individuals of all ages and both sexes congregate. Under these conditions it is impossible to develop proper ideals of morality and family life — the very foundations of human society. Such conditions breed the criminal, the immoral, and the degen- erate element in American society. What remedies may be suggested for these housing con- ditions so fatal to the life and character of modern peoples? The Since congestion is the root of the evil, the remedies problem must be approached from this stand- point. Either congestion itself must be removed or its Workingmen's Houses in Texas evils mitigated. The former method has been sought by the advocates of comprehensive city-planning. According to this plan, the great congested quarters of the city would be denuded of their surplus population by their removal to suburban districts, to which adequate means of transporta- The Growth of Cities 121 tion would be established. The success of this plan depends upon its cheapness. Unless rentals are reasonable and transportation rates low, the plan cannot succeed. Again, paternalistic schemes have been tried, such as that of the Krupps at Essen in Germany, and the experiment of the Pull- man Company near Chicago. Philanthropists, like Ruskin and Peabody, have also attempted to improve the housing conditions of the laboring class. Where it is impossible to rebuild the city, perhaps the most practical plan is that of strict government regulation and municipal inspection of housing conditions in the more densely populated sections of the city. Regulations must be enacted and rigidly enforced to guard the health, comfort, and safety of those living in congested quarters. A campaign of education will accomplish much in developing in the community a realization of "how the other half live"; while a sound solution of the problem of immigration will materially lessen the evil of congestion. The growth of the modern city bears a vital relation to the problem of public health. We have already seen the effect of bad housing conditions, with all their p u bii c attendant evils, upon the health of the con- eat " gested sections of a great city. But in addition to proper housing conditions, many other factors enter into the health and safety of urban populations. Of first importance is the water supply. This should be plentiful and free from con- tamination. Because of the lack of proper waterworks and an adequate filtration system, many cities have suffered from a poor and contaminated water supply. Again, it is imperative for the maintenance of public health that the city should be supplied with an adequate system of under- drainage and an effective sewage disposal plant. The 122 Problems of American Democracy proper collection and disposal of garbage, together with the elimination of unclean rubbish, is a most important factor in the maintenance of public health. A pure milk supply is only second in importance to a clean water supply. Because of carelessness and ignorance in the preparation of the milk diet, thousands of babies are sacrificed annually in every great city. Pure food regulations and cold storage restrictions are also made necessary by the conditions of urban life. Protection, too, should be afforded against the spread of contagious diseases. Houses must be fumigated to kill the germs of tuberculosis, scarlet fever, diphtheria, and smallpox. The health department of a great city holds as many lives in its care as are intrusted to the police and fire departments. Many hospitals maintain free clinics and dispensaries, some of which include a special social service department. To-day, in our great cities, the public schools employ nurses and physicians to examine the eyes and to care for the teeth of thousands of children. Likewise, the playground movement has begun and recrea- tion centers are located in many school yards. Public baths are a source of both pleasure and bodily cleanliness, while the parks of the city afford relief to the thousands who never ask themselves where they shall spend the summer. The city is the great laboratory for the study of society. Here are intensified the great social, economic, and political questions of the day. It is not that the city is inherently Social more wicked than the country, but that the fact conditions. Q £ g reat numbers accentuates the problem. In the densely settled metropolis the problems of immigration and good citizenship are inseparable. It is also in the city that the negro problem shows some of its worst evils. The The Growth of Cities 123 crowding together of whites and blacks often results in considerable race friction and disorder among the ignorant classes of each race. Poverty and pauperism are more common in the city than in the country, for many unfor- tunates drift in from the surrounding rural districts. Urban charitable institutions support during the winter the migratory group which leaves with the advent of spring. Many cases of permanent relief formerly lived in the country and came to the city with no definite means of support. It has been estimated that a third of the population of many big cities live below the poverty line, and in some of them as high as ten per cent have required the assistance of charity. The city's record of crime is unenviable and is often twice as large as that of the country. Vice seems associated with city life; but illiteracy is not so great among the native born in the city as in the country. But what of the future? The "city beautiful" is the ideal of those who would remodel city life upon more artistic lines by inaugurating an era of city- The planning for future development. A second uture - ideal centers in public health. The examination of men for military service in the great World War has disclosed valuable statistics concerning the health of city dwellers. There is no doubt that the urban death rate is shrinking. The city, which was formerly regarded as extremely unhealthy, is becoming more sanitary with the advance of scientific knowledge. Preventable disease, however, can be still further cut down by greater civic cooperation. A third ideal is that of reform in housing and committees of citizens have determined that the slum must be eliminated from city life. The political ideal seeks a municipal government which is both efficient and democratic. Some 124 Problems of American Democracy American cities, as we shall see in a later chapter, have already adopted a commission form of government to insure better civic housekeeping. Let us hope that the future will not bear out the opinion of Viscount Bryce a generation ago that municipal government was the one great failure of American democracy. Rural Life. — The more rapid increase of urban popu- lation as compared with rural has already been indicated. The The appeal of the city to the country boy was past ' ever present, and in the past rural districts were frequently drained of the ambitious element qualified for future leadership. Country schools were often few and poor, while the school term was shortened to meet the de- mands of farm life. Higher education could only be obtained in the city. Work on the farm was hard and the hours of labor long. Indeed, the farmer and his family have probably been exploited as much as any other element in American industry. He has patiently suffered a working day from sunrise to sunset, while his wife has not only performed the chores of farm life, but also reared large families. The farmer, himself, has endured longer hours of work than those permitted by many trade unions. In the past, his daughters and sons have sought an escape in city life from the hard rigor of the farm. In recent years, however, a change has gradually taken place. A decreasing proportion of food producers com- The pared with food consumers has elevated the importance and economic position of the farmer. Higher prices and better living conditions combine to make his life more enjoyable. No longer is he necessarily confined and bound by tradition. The creation of a federal department of agriculture has been beneficial in The Growth of Cities 125 the dissemination of better methods of farming. Expert advice upon seeds and soils can be had for the asking. Education has advanced with material prosperity, and the modern farmer is beginning to see the value of sending his boys to school. The country high school has appeared upon the landscape. The rural free delivery of mail, the newspaper, and the telephone help the farmer keep abreast of the times. The mail order department of the big stores send their catalogues to his door, while the interurban electric trolley takes him quickly to town. Finally, the advent of the automobile has produced better roads and promoted sociability. Thus the former isolation of country life is fast disappearing. QUESTIONS FOR DISCUSSION 1. Name and describe some famous cities of antiquity. 2. Describe the appearance and sanitary conditions of medieval towns. 3. What modern industrial changes caused an unprecedented growth of cities? 4. Give examples of this growth among European cities. 5. Compare urban and rural development in America. 6. What is the distribution of urban population in the United States? 7. What are the causes of the growth of cities in recent years? 8. Give the results of such a rapid growth of cities. 9. What do you mean by city-planning? 10. How would it help solve the problem of congestion? 1 1 . Describe some conditions of bad housing with which you are familiar. 12. Give the effects of such conditions upon the public health and morality. 13. Give some remedial suggestions. 14. What do you think of municipal tenements and corporation villages? 126 Problems of American Democracy 15. What should housing legislation prohibit and what should it demand? 16. Show the relation between public utilities and city health. 17. Show some definite ways in which pure food laws protect the public health. 18. Why is a social service department a valuable addition to a hospital staff? 19. What social ills are intensified in a city? 20. How do city and country compare in poverty and crime? 21. What should be the ideals of the future city? 22. Describe the change which has taken place in rural life. TOPICS FOR SPECIAL REPORT 1. The rise of cities in the Middle Ages. 2. The Industrial Revolution and the growth of modern cities. 3. Immigration in relation to cities. 4. Housing conditions in your community. 5. Your water supply. 6. "How the other half live." 7. The water fronts of French and German cities. 8. The activities of a department of public health. 9. City-planning in America — its progress and advantages. 10. European versus American cities. REFERENCES Bailey, L. H. The Country Life Movement in the United States. Godfrey, H. Health of the City. Rhs, J. How the Other Half Live. Robinson, C. M. Modern Civic Art. Rowe, L. S. Problems of City Government. Smith, S. G. Social Pathology. Weber, A. F. Growth of Cities. Wilcox, D. F. The American City. CHAPTER XI Problems of the City I. Government of the city i. The city as a political unit 2. Early forms of government 3. Political corruption 4. Commission form of government 5. City manager plan II. Municipal activities 1. Recognized functions 2. Public utilities 3. Water supply 4. Gas and electricity 5. Transportation 6. Franchises 7. Municipal ownership Government of the City. — The city or borough is a legal creation of the commonwealth in which it is located. It is a municipal corporation which has been given a charter by the state legislature. The as I C1 y charter contains the organization of the city J^t? government and numerous provisions specifying what the city may do and what it may not do. Its borrow- ing power, for illustration, has legal limitations. Although a state passes laws, a city can pass only ordinances. Some cities in the United States contain a greater population than certain states. Nevertheless, their citizens are not 128 Problems of American Democracy free to choose for themselves in many matters of local government. They are dependent upon the state legis- lature, which is made up of representatives of all parts of the commonwealth. Hence there has grown up the cry of "Home rule for cities." On the other hand, it must be remembered that many municipal functions are of vital interest to others who do not live inside the city. The water supply and the disposal of sewage are cases in point. Another problem is the occasional confusion between city and county lines. Sometimes the city has grown so enormously that it has become practically coterminous with the county, and yet the two sets of offices have per- sisted. In England, when a borough reaches a certain population, it is then known as a county borough and becomes a separate political unit. In the United States, it is possible for a small community to separate itself legally from the township in which it is located. It then becomes a chartered corporation and a unit of local govern- ment independent of the township. Such municipal cor- porations are known variously as villages, towns, or boroughs. Early town government in America was modeled after that of England. Not only was the mayor elected by the Earl members of the council, but vacancies in that forms of body were often similarly filled. Hence the government. . organization was that of a closed corporation. Gradually, the citizens of the towns came to elect not only the members of the council but also the mayor. City charters were planned like those of the state and national governments and usually provided for two chambers of councils. The select council generally had a smaller membership than the common council, and its members Problems of the City 129 were called aldermen. Although the practice varied, the mayor generally had a veto power. Recently there has been a tendency toward a smaller and one-chambered council. With a smaller number of members, it is possible to pay higher salaries and to raise the personnel of the membership. The large two-chambered body was not only too unwieldy, but it also tended to diffuse responsi- bility. As a rule, the members of council are elected from municipal districts called wards. Many objections have been raised to this application of the principle of geo- graphical representation to cities. It is held that the needs of different parts of the city are not sufficiently divergent to justify separate representation, and that the best men of the whole city should be chosen irrespective of their local residences. A generation ago, Viscount Bryce regarded the city as the great failure of American democracy. It was here that the evils of bossism were most glaring. Political Political leaders, in return for patronage and corru P tlon - political favors, have been able to control the vote of the majority. The city has been divided by the political machine into smaller districts, each under the control of some office-holder who is responsible for "getting out" the vote on election day. The influx of great numbers of ignorant immigrants into the city has made easier this political manipulation. The administrative departments have been frequently lacking in efficiency, and the wheels of justice have sometimes been clogged. Finally, there has been in the past a great waste of the public funds. When Tweed was boss of New York a court house was designed to cost two hundred and fifty thousand dollars. Seven years later it was found that eight millions had been spent J 130 Problems of American Democracy and that the building had not yet been completed. As late as 1908 an investigation revealed the fact that the police department was paying twenty-one cents a pound for nails, which any citizen could purchase for five cents a pound. Cheap five-cent coat hooks were being put up at a cost of over two dollars apiece. The awarding of munic- ipal contracts to political favorites has given rise to the expression of "contractor rule." Municipal finances have often been poorly managed and great debts incurred. Bonds have sometimes been issued to meet current expenses, as well as to pay for permanent improvements. A new type of municipal government came into existence with the Galveston flood of 1901. The city had been rather extravagantly administered under the mayor- sio™form council type of government. Deficits had been mentT ern " regularly met by borrowing. The flood caused great loss of life and property. The munici- pality seemed incapable of meeting the catastrophe and restoring the public credit. A new charter was therefore granted the city, which provided for a commission form of government. The entire control over the government of the city was placed in the hands of five commissioners who held both executive and legislative power. They not only passed ordinances for the city, but also were in charge of the administrative departments. In many forms of com- mission government, each commissioner directs the work of some one department of the city government. The presiding officer is frequently in charge of finances. Although the commissioners are elected by the people of the city, the mayor is chosen later from among his fellow commissioners, who then proceed to divide the work of the various departments among themselves. Such a plan Problems of the City 13 1 has been termed an attempt to give the city a business administration, but has been successfully operated thus far only in our smaller cities. The success of the Gal- veston plan resulted in its adoption by many other cities. It is a device by which responsibility is fixed in the hands of a few people, who are known to the community and whose work can be closely watched. Des Moines copied the general plan, but added the initiative and referendum as an aid to direct legislation. The city manager plan is an adaptation of the com- mission form of municipal government. Here the com- missioners do not attempt to administer directly any of the departments of the city government, manager They merely determine the general policy to be followed and leave the actual administration to some pro- fessional expert whom they have chosen. In this respect, we observe a resemblance to the directors of a corporation and the salaried superintendent of their plant. The city manager generally has the power to appoint the adminis- trative officers under him and, in this way, can be held responsible for the efficiency of the various departments. On the other hand the city manager is an employee of the city commissioners, who can dismiss him when dissatisfied with his municipal administration. An amendment added to the constitution of Ohio in 191 2 permitted cities to draft their own constitutions, and the city of Dayton chose the city manager plan. Here, as in Galveston, a flood was partially responsible for a political readjustment. The Dayton charter will serve as an illustration of the city manager plan. In this form of government there is a commission consisting of five members, elected for four years from the city at large. They pass ordinances, fix 132 Problems of American Democracy the tax rate, approve appropriations, and elect a city manager to run the administrative departments. There are also provisions providing for the initiative, referendum, and recall. Municipal Activities. — No matter what form the city government takes, there are certain fundamental depart- Recognized ments for which provision must be made. In functions. ^ £ rgt pi ace? fa e municipality must protect the lives and property of its citizens. Hence we have the department of public safety with its police and fire bureaus. The development of a uniformed police force organized upon a military basis was a gradual evolution from the earlier days of night watchmen and constables. So, too, the present engines for fighting fire are very different from the hand-pulled and operated machines of a generation ago. Other municipal departments are those of transportation and public works. Bridges and highways must be built and kept in repair, while the city is also responsible for the construction of sewers and the disposal of the sewage. It must own and keep in repair its own pipe lines and sewage disposal plant. The cleaning of the streets and the collection of refuse are legitimate functions of the city. Some municipalities have awarded this work to private contractors, but the practice is disappearing. Other important city departments are those of health, charities, and education, for these are vital functions in any democracy. To pay for all these municipal activities great sums of money must be raised. The tax upon real estate is the chief source of revenue for the local govern- ment. The appropriations for some of our larger cities are even greater than those of a number of our common- wealths. Hence, there is the necessity for an adequate Problems of the City 133 budget system and some standardized methods of account- ing. Of recent years there have come into existence in various cities bureaus of municipal research. These organizations, which are privately financed and directed, study municipal problems and make suggestions for civic betterment. A new day may be dawning in municipal affairs in which men will proudly say in the words of the Apostle Paul, "I am a citizen of no mean city." Besides the recognized municipal functions which the city cannot escape, there are other activities of a semi- public nature. These include the furnishing of Public water, gas, electricity, and the means of trans- utmties - portation and communication. Although frequently per- formed by private corporations, the nature of the service here rendered is so essential to the community that some sort of government regulation is imperative. Hence the term public utility is applied to this group of necessities. If the commodity or service were not essential, the public could cease its consumption. When there is no possibility of substitution, however, "Mr. Common People" must accept the service rendered and pay the price demanded. Besides these social and political characteristics, there is an economic aspect of the problem. Public utilities are natural monopolies, that is, their very nature makes com- petition impracticable. For illustration, it would be very costly to build parallel trolley lines or to install water pipes of separate companies on the same street. Compet- ing telephone companies in the same city not only make necessary a duplication of poles, wires, and exchange stations, but also force individuals to subscribe to both companies in order to secure effective service. Competi- tion between public service corporations has proved disas- 134 Problems of American Democracy troiis in the past. They have finally been forced to combine and to raise the rates in order, not only to recom- pense themselves for the cheap rates during the period of competition, but also to pay for the duplication of equip- ment. For these reasons public service commissions have frequently refused to grant a franchise to a new public service corporation when another similar company was operating in the same district. The importance of a pure and adequate water supply to the community makes this service an essential public Water utility. With the growth of cities, it has become supply. increasingly difficult to find a source of water which is both adequate in supply and free from impurities. Rivers are regarded with suspicion because other cities farther up the stream may have used the channel for sewage disposal. The city of Los Angeles brings its water through huge conduits a distance of two hundred and fifty miles down the mountains and across the desert. Inci- dentally this also furnishes a source of hydro-electricity. Other cities dependent upon rivers have built great filtra- tion plants and costly pumping stations. Bacteriological tests are made and the water is sometimes scientifically treated to safeguard the health of the city. Because of the close relationship of the water supply to the public health, most cities own their own waterworks. A second consideration is that of cost to the consumer. Often the revenue from the water tax is insufficient to pay for the cost of the service. The water department may show a deficit which must be made up in other ways. Water meters are excellent preventives of waste, but unfortunate in so far as they discourage the use of water on the part of the poorer citizens. Problems of the City 135 Gas was used as an illuminant early in the eighteenth century. The lighting of the streets decreased the amount of crime and helped make the modern city a more Gas and pleasant place in which to live. The history of gas electncit y- service as a public utility is interesting and varied. Different cities have made numerous experiments. At first private companies were chartered and given very liberal franchises. Later many cities bought the gas plants, and tried municipal ownership and operation. No generalization can be made, however, for some cities succeeded while others signally failed. The development of electricity has overshadowed the use of gas as an illuminant. Electric lighting dates from the year 1880. Before the close of the last century numerous electric plants had been established. Although some cities have manufactured their own electricity, most of them found it more economical to purchase it from great electric power companies. Because of its increasing industrial uses, the manufacture of electricity in recent years has been accomplished on a very large scale. No limit can be set to the possibilities of electricity, and future generations may regard the supply of electric current as vital as the water supply. Hence the rates and the character of the electric service must be carefully supervised by public service commissions. Electricity cannot be stored in tanks like gas, but is produced instantaneously with the demand. The industrial need during the day balances the demand at night for lighting purposes. Nevertheless, the problem of supply is difficult of adjust- ment, and the steady consumer is favored in rate making. Electricity for the lighting of the city is sometimes furnished at a very low rate, in return for certain privileges in the franchise given to the company. 136 Problems of American Democracy The development of municipal transportation in America, since the first street car line was operated in Baltimore in Transpor- J %S9, has been signalized by marked improve- ments. The horse and cable cars gradually gave way to the electric trolley. English cities still cling to the bus, which seems adapted to their narrow, crowded streets. Recent years have seen the development in America of the subway and the elevated railroad. As each city grew, the separate car lines in it were merged into a great system. In the history of the various mergers all sorts of "high finance" are illustrated. Some of the early lines had been given such favorable franchises that they made enormous profits. In taking them over, later companies were forced to guarantee high earnings to the original companies. The evil of stock watering appeared, and the public found it difficult to get lower fares. Public service commissions, therefore, came into existence. These public bodies are empowered to pass upon the quality of the service. They may also determine what is an equitable fare and what is a proper rate of profit for the investors. In Europe, as contrasted with America, public ownership of tramways has been the rule. In order to facilitate rapid transit in our growing cities, some American munici- palities have tried the experiment of building their own subways and elevated railroads and of leasing them to private companies to operate. The city is given by the commonwealth the right to make a contract with a private corporation granting it the right to do certain things. Such a contract, Franchises. ° . .. . , called a franchise, is made for a limited number of years. The franchise may impose conditions upon the company, such as the repairing of the streets, the quality and Problems of the City 137 the cost of the service rendered, and the payment to the city of certain charges for the right to operate. In the past franchises have often been given away with little regard for the public interest. Political influence in councils, or the legislature, have sometimes influenced the terms con- tained in them. Many valuable privileges, for which later commercial companies would have paid a handsome price, were given away or sold at a very low figure. On the other hand, the conditions imposed have not proved a sufficient safeguard against the exploitation of the city and the con- sumer. Perhaps the worst feature was the long term for which the franchise was often granted. Franchises were permitted to run for ninety-nine, and sometimes for nine hundred and ninety-nine, years. No generation, however, should have the right to limit the freedom of choice of future generations because conditions change so materially with the lapse of time. It is fair to both corporation and public that no franchise should be granted for a longer period, perhaps, than thirty years. At the end of the period specified, the city should have the right to purchase the plant of the public utility company at a fairly appraised valuation. Municipal ownership in America is limited principally to waterworks and occasionally to lighting plants. Europe has gone further in the public ownership of Municipal means of communication and transportation. ownershi P- In Germany, slaughter houses and milk depots are munic- ipalized to a rather large extent. American cities are just beginning to own their own water fronts and to con- struct municipal docks. Merely because municipal owner- ship has worked in a number of European cities, however, is no guarantee that it will be successful in American 138 Problems of American Democracy municipalities. The advocates of public ownership claim that, with the elimination of private profit, the service rendered will be much cheaper. Moreover, the social results might prove beneficial in that success would no longer be read in the form of high dividends, but rather in terms of the greatest good to the greatest number. Ameri- can experience in public ownership has not always shown that these desirable things have followed. Cheaper and better service has not always been obtained. Lax business methods, extravagance, and political corruption have sometimes occurred. The opponents of public ownership claim that, under such a regime, the consumer will endure evils to which he would not submit under private owner- ship. A compromise in the form of municipal ownership and private operation has been suggested. At least some form of regulation is necessary, and most states have established public service commissions for this purpose. Each city and each public utility present an individual problem. It is therefore impossible to generalize upon the merits of municipal ownership as an undeviating principle of democracy. QUESTIONS FOR DISCUSSION 1 . What is the legal relationship between the state and the city? 2. What do you understand by home rule for cities? 3. Name some other units of local government besides the city. 4. What are some important differences in governmental organi- zation? 5. How do the functions of rural government differ from those of a big city? 6. Outline the development of the mayor-council type of city government in America. 7. Name some of the fundamental administrative departments of a city and show what each does. Problems of the City 139 8. Show how the commission form of city government differs from the early form of municipal government. 9. What are the similarities and differences between the com- mission form of government and the city manager plan? 10. What have been some causes of the past maladministration of city government? 1 1 . Do you think there has been any recent improvement? What? Why? 12. What are public utilities and why are they so called? 13. Justify, if possible, their monopoly position. 14. What does your city or town do to insure a safe and adequate supply of water for its citizens? 15. Show the stages in the development of municipal transporta- tion. 16. What is a public service commission? What powers should it have? 17. What are the mistakes that have been made in granting franchises? 18. What suggestions can you make in this regard? 19. Compare the advantages and disadvantages of municipal ownership of public utilities. TOPICS FOR SPECIAL REPORT 1. The charter of your own or some neighboring city. 2. The development of the commission form of government in American cities. 3 . The government of some city which illustrates the city manager plan of municipal government. 4. Proportional representation. 5. Bureaus of municipal research. 6. The history of city lighting. 7. Influence of the Federal Constitution upon municipal charters. REFERENCES Beard, C. A. American Government and Politics. Fairlie, J. A. Municipal Administration. Goodnow, F. J. Municipal Problems. 140 Problems of American Democracy Howe, F. C. The City: the Hope of Democracy. Magruder, F. A. The American Government in IQ21. Ogg, F. A. Governments of Europe. Rowe, L. S. Problems of City Government. Young, J. T. The New American Government and Its Work. Zeublin, C. American Municipal Progress. CHAPTER XII Our Increasing Population I. Growth of population i. Its importance 2. Its modern increase : a. Early conditions b. Causes of increase 3. Laws of population : a. Theory of Malthus b. Modern opinion 4. In foreign countries 5. In the United States II. Distribution of population 1. Geographical 2. Other methods: a. Race b. Nativity c. Sex d. Age III. Vital statistics 1. Meaning 2. A falling birth rate: a. In Europe b. In America c. The causes 3. A falling death rate: a. The reasons b. Other influences 141 142 Problems of American Democracy The Growth of Population. — The political evolution and territorial expansion of the United States during the Itsim- nineteenth century were accompanied by an portance. equally striking increase in population. When independence was achieved, our people numbered but a scant three millions. To-day the population of continental United States has crossed the hundred million mark. All other things being equal, the relative importance of a nation tends to advance with an increase in numbers. Assuming that the quality of the population has not deteriorated, an increase or decrease in its quantity is an important factor in group survival. A nation may increase in numbers either by a surplus of births over deaths or by immigration from without. Both methods have been important in the development of American population. Before tracing in turn each of these two factors, let us note a few interesting phases of the general problem of population. While no reliable statistics are available, it is generally believed that the population of Europe during the Middle Ages was stationary. Conditions prevented increase:" 1 any considerable growth of numbers, for, while Early con- feudal warfare devastated the crops, famine and dihons. x pestilence swept the land. The few walled towns and cities of that time were filthy, unsanitary and congested centers through which the Black Plague could make terrible headway. In spite of the enormous death rate, a correspondingly high birth rate kept medieval population up to the limit fixed by the productivity of the land. This was not great, however, for the area under cultivation was small and the methods of farming crude. When the Council of Clermont preached the First Crusade in 1095, Our Increasing Population 143 one argument advanced in its favor was that it offered a means of escape from over population in France. Through- out the Middle Ages and during modern times, until the opening of the nineteenth century, population increased comparatively slowly. During the last century, however, a remarkable increase took place in the population of the civilized world. From 1 800 to 1 900 European Russia increased in popula- causes oj tion from forty to one hundred six millions, Ger- mcrease - many from twenty-seven to fifty-six, France from twenty-five to thirty-nine, and Great Britain from twenty-five to forty- two millions. Increase of population means a surplus of births over deaths, and this surplus during the nineteenth century was due to a fall in the death rate rather than to a rise in the birth rate. The advance of medical science and of public hygiene has prolonged human life by cutting down the death rate. Again, during the last century, the existence of a larger population on a given area was made possible by improved economic conditions due to various inventions and discoveries. No longer did a third of the land lie fallow as in the Middle Ages, but rotation of crops was practiced. Increased knowledge of agriculture and new inventions, such as the machine plow and the com- bined harvester and reaper, multiplied many times the food supply. Finally, the geographical area for produc- tion has been widened. The great plains of the Missis- sippi, of South America, of South Africa, and of Australia have been developed. These vast regions, originally possessed by a very sparse native population, are now producing foodstuffs for the increasingly dense popula- tion of Europe. From what has been said it will be seen that there is a 144 Problems of American Democracy close connection between growth of population and increase of food supply. Because of this relationship, writers have been tempted to lay down laws of population. Thus, in 1798, an English economist named Thomas Mal- popuiation: thus published "An Essay on Population" He Aiaitimf originally contended that while food supply in- creased only in an arithmetical progression, popu- lation tended to increase in a geometrical ratio. This theory was later modified to the mere assertion that population tended to increase faster than the food supply. Positive checks upon population are those factors which increase the death rate. Good examples of these are war, pestilence, and famine. Negative or preventive checks are those which decrease the birth rate, such as the higher age of marriage, and the development of a feeling of responsibility. Such in brief was the theory of Thomas Malthus, who believed the source of most human misery lay in the tendency of population to outstrip the means of subsistence. His writings were so widely read that there soon grew up around him a pessimistic school of philosophers. Little hope was held for the future of society, and war, famine, and pestilence were regarded as necessary evils to keep down surplus population. The very century in which Malthus died disproved his melancholy theory, mentioned here merely because of its historical impor- tance. As we have seen, not only were new areas of production opened, but also upon old lands intensive farming was practiced. A progressive society, character- ized by invention and cooperation, can set no arbitrary limit to its productivity. Again, the same century pro- duced a falling birth rate which, as a negative check, makes unnecessary the operation of such positive checks Our Increasing Population 145 as war and famine in the process of adjusting population to food supply. It may be stated that, while the growth of population is limited by food supply and general economic conditions, it is impossible to lay down any exact laws upon Modem the subject. Savages in the hunting and fishing opmwn - stage do not develop a dense population. The American Indians were probably not more numerous in the days of Columbus than at present, but had apparently reached their maximum growth of population. A whole continent can support only a sparse population so long as it is used as a hunting ground. When the pastoral stage is reached a given area will support more people, but a wandering life necessitates large areas inadequately developed. A fairly dense population only develops when the agricultural stage is reached. The fourth stage, that of commerce and manufacturing, has produced a congestion in cities and a density of population unparalleled in history. The 1920 census found over 117,000,000 people living under the American flag, 105,000,000 of whom resided in continental United States. In point of numbers China with its four hundred millions comes first. Should this nation take hold of western civilization as did Japan, it is destined to become a mighty factor in the world of to-morrow. We have already compared the populations of the nations of western Europe in 1800 with the figures for 1900 and have seen the remarkable increase during the past century. Let us now compare the latter figures with those for 1910 before the calamitous destruction of life wrought by the World War interfered with the normal growth of population. In the first decade of the nineteenth century European K 146 Problems of American Democracy Russia jumped from one hundred six to one hundred thirty-four millions, Germany from fifty-six to countries! sixty-five, France from thirty-nine to thirty-nine and one-half millions, Great Britain and Ireland from forty-two to forty-five, Austria from forty-five to forty-nine, Italy from thirty-two to thirty-five, Spain from eighteen and one-half to nineteen and one-half millions, and continental United States from seventy-six to ninety-two millions. Looking over the figures for Europe we notice first of all that, generally speaking, there seems to be in this decade no diminution in the rapid rate of increase which marked the last century. In the second place, the rate of increase varies greatly in the different countries and, if continued, this difference will greatly affect their future relative importance. In spite of a high death rate, Russia leads the list because of an enormous birth rate. Thus that nation when stabilized may become a still greater factor in future European politics, although a high birth rate and a high death rate indicate a relatively backward civilization. France and Germany afford an interesting comparison. While Germany comes second in rate of increase, France is last in the list, for her population is little more than stationary. If the ratios for the first ten years are typical of the century, the relative im- portance of these nations will be greatly affected. A century from now, a country of forty million people will be of little more importance than Holland or Belgium is at present. Immigration has played an important part in the enormous increase in the population of the United States. At the time when our independence was achieved there were about three million people inhabiting the thirteen Our Increasing Population 147 original states. Since then, in every generation of thirty years, our population has doubled itself. Natu- rally the increase has been greatest in the newer United states of the West. The following table shows the result of each census : 1790— 3,929,214 1800— 5,308,483 1810 — 7,239,881 1820— 9,638,453 1830 — 12,866,020 1840—17,069,453 1850— 23,191,876 i860— 31,443,321 1870— 38,558,371 1880— 50,155,783 1890—62,947,714 1900— 75,994,575 1910 — 91,972,266 1920 — 105,708,771 There is, also a very interesting relation between the increase of population by native birth rate and that by foreign immigration, as can be seen from the following table : Year Per Cent of Total Increase Per Cent by Immigration Per Cent by Birth 1840 32.67 4.66 28.01 1850 35-87 10.04 25-83 i860 35-58 11. 12 24.46 1870 22.63 7-25 I5-38 1880 30.08 7.29 22.79 1890 25-5° 10.46 I5-04 1900 20.73 5.86 14.87 1910 21.02 n-57 9-45 1920 15.00 4-5o 10.50 This table shows that, generally speaking, as the rate of foreign immigration has increased the native birth rate has fallen. Hence Professor Walker argues that it is doubtful whether foreign immigration has actually increased the 148 Problems of American Democracy sum total of our population, which was increasing as rapidly before the enormous wave of immigration as after- wards. Again, although the South has received little immigration since the Civil War, her population has increased proportionately just as rapidly as has the popu- lation of the North, which has been recruited by foreign immigration. Distribution of Population. — About one-half of the world's population lives in Asia and one-quarter in Europe. The remaining dry land of the globe including ical distri- Africa, Australia, North and South America bution. / contains little over a quarter of the world's total population. In Europe the industrial nations of Belgium and England are the most densely populated. Before the World War Belgium had an average population of six hundred and thirty-six per square mile. Italy and Germany come next with a respective density of one hundred and six and one hundred and four people per square kilometer. The least densely populated of all Europe are Russia and Scandinavia. As compared with western Europe, the United States is sparsely peopled. Germany, for example, before the World War was ten times as densely populated as our own country. The average density for the United States as a whole is thirty-one per square mile. The center of population, however, has been moving steadily westward from the older states along the Atlantic seaboard. When the first census was taken in 1790 this center was located near Baltimore, but it has moved steadily westward through Maryland, Virginia, West Virginia, Ohio, and Indiana. The 1920 census located it in Owen County in southwestern Indiana. The dry climate and high altitude of our mountain states Our Increasing Population 149 of the West make a dense population improbable in that region. The density of population in the eastern states is much greater than in the western, for the East is the com- mercial and industrial section where numerous large cities nourish. Indeed, at present, a trifle over half our entire population lives in cities of twenty-five hundred or more inhabitants. About five per cent of our entire population is within the limits of greater New York City. About nine-tenths of our population is white, while the remaining one-tenth is negro, most of whom are located south of the Mason and Dixon line. There are 0ther about one-fourth of a million Indians, and about methods: one hundred fifty thousand Mongolians, chiefly located in California. This number of Mongolians is divided unevenly between the Chinese and the Japanese. About eighty-five per cent of our present population is native born, the remaining fifteen per cent being foreign. The number of those of foreign parentage is .,1 1 • 1 1 1 ■ ■ 1 Nativity. stiil higher and reaches a maximum m the New England and Middle Atlantic States of over twenty- five per cent. As we shall see later, there is a great ten- dency of our foreign-born population to become congested in the cities. How nature provides for the approximate numerical equality of the sexes is a problem of biology, but that such is the case may be seen by examining large num- bers of birth records. As men are more likely to migrate than women, new countries, like our own, affected by immigration will show a slight excess of males over females. Older countries, affected by emigration, show a slight excess of females. War tends to reduce the proportion of males. In the United States there is an excess of two and one- i5o Problems of American Democracy Age. half million males over the number of females. In Europe before the World War there was a slight excess of women, which disproportion has since been increased. The average age in the United States is approximately twenty-six years, and the proportion of those over the legal age of twenty-one is slightly over one- half. The proportion of males of military age from eighteen to forty-five years is about one-fifth the population, or approximately twenty millions. About the same proportion makes up the school population of the country. Vital Statistics.— Under vital statistics are included the records of births and deaths in a nation. These are reckoned according to every thousand of the population. Thus a death rate of nineteen and seven-tenths would mean that, in a given year in a given community, an average of slightly over nineteen people died out of every thousand of the population. Death records are fairly accurate, but in spite of legal require- ments the registration of births in our country is far from complete. We have seen that the population of Europe, before the World War, was increasing. This was true in spite of a falling birth rate, for the death rate had also fallen so that there was still a considerable excess of births over deaths. Let us examine the birth rates of three typical nations : Meaning. Countries 1871-1880 1881-1890 1891-1900 1 900- 1 909 Germany England and Wales France 39-i 35-5 25-4 36.8 23-5 23-9 36.1 30.0 22.1 34-o 27.6 20.8 Our Increasing Population 151 The above table is evidence of a declining birth rate in three leading countries of Europe. This fact is extremely significant, for it seems to indicate that a high A falling civilization is characterized by a low birth rate. birth rate : lit EtlTO i)C Again, the difference m the birth rates of Germany and France is most striking. There are many reasons for this difference, but perhaps the most important is the economic. Germany in the last generation made wonderful industrial progress and became capable of sup- porting a large population, while in France economic and social conditions were not so favorable to the growth of large families. For example, French law requires an equal division of the father's property among the children. This plan has encouraged small families among the peasants so that the holdings of each son may not be too small. This low birth rate has been a problem to French states- men, and a scheme of taxation has even been proposed to meet the situation. According to one plan suggested, the highest tax would fall upon bachelors, whereas a father of three children might be entirely exempt from taxation. In America, a similar but not so pressing a problem exists, for we are facing a decrease in the birth rate of our native white stock. The average size of the American family has decreased from five and six- tenths in 1850 to four and three-tenths in 1920. Thus in the last half century it has decreased by more than one person. The falling birth rate is most noticeable in New England, so that the very phenomenon occurring in France is equally visible in Vermont and New Hampshire. This decrease is most apparent when we compare our native birth rate with the birth rate of- our immigrants. In 1 9 10, in Massachusetts, the native birth rate was four- 152 Problems of American Democracy teen and eight-tenths, while the birth rate of the foreign born was forty-nine and five-tenths. The death rates of native born and foreign born were sixteen and In America. three-tenths and fifteen and five-tenths respec- tively. Hence the native stock in Massachusetts is decreas- ing, as the birth rate is actually lower than the death rate. Among the foreign immigrants, however, the surplus of births over deaths is enormous. What will be the future of Puritan New England if this situation continues and who will inherit the land of the Pilgrim fathers? In the South, however, the situation is not so serious, for there the native white stock is holding its own. The most important cause of the declining birth rate among our native white stock is found in the economic _,, situation. American standards of living have The causes. # ° been constantly rising, while wages have not risen proportionately. This relatively lower increase in wages has been attributed to the lower standards of immigrant laborers who, in their competition with native laborers, force down wages. As a consequence, the American seems to be delaying the age of marriage, with the result of the small family. A moderate income will not permit him to rear a large family, if he wishes to give to his children desired advantages. The increase in the cost of living has exceeded the increase in wages and far outstripped the salary of the so-called middle classes. As a result, the birth rate falls rather than the standard of living. Curiously enough the size of the family seems to vary inversely with extremes of income. What has been said above applies mainly to the great middle class. Comparing the so-called upper and lower classes of American society, based upon income, we find Our Increasing Population 153 that the birth rate of the " laboring class" is much higher than that of the "social set." In this latter case, a desire for luxurious ease and comfort often militates against large families. In addition to selfishness, there are many other causes, beside the economic, which help to explain the declining birth rate of native white Americans. From the following table we may observe a falling death rate in three leading European countries: Countries 1875-1899 1900 1900-1909 Germany England and Wales France 24.4 19-3 22.0 22.1 18.2 21. g 19-5 15-8 19.8 This fact of a falling death rate is also true of our own country. Thus the death rate in Massachusetts fell, in ten years, from nineteen and three-tenths to . falline: seventeen and seven-tenths. In the same decade death rate : The TCdsofts the death rate in the state of New York fell from nineteen and six-tenths to seventeen and nine-tenths. The stage of civilization attained by a people may be read in the death rate of a nation, for enlightened countries attempt to prolong human life and to lessen preventable diseases. Modern medical science has done much in this direction. In the last century the death rate of cities has been cut in half by a knowledge of public hygiene and sanitation. One by one the causes and carriers of disease are being discovered and conquered. The elimination of typhoid by a more careful disposal of sewage, of yellow fever by the extermination of the mosquito, and of small- pox by compulsory vaccination are the triumphs of medical science. The crusade against tuberculosis is still being 154 Problems of American Democracy waged. However, infant mortality, although decreasing, is still high. Baby-saving campaigns have resulted in popular education upon this subject. Clean milk and flyless homes will accomplish marvels. At the present time, however, one-half of all infants born die before the age of five years. As recently as 1900, in the registered area of the United States, sixteen and two-tenths per cent of all children born died within the first year. War is an obivously important factor affecting the death rate. Again, economic depression raises the price of food other and with it the death rate. Industrial accidents influences. yjj t h ousan( } s annually in the United States alone, and occupational diseases take a terrible toll. Climate and season are two other important factors influencing the death rate. In cold climates winter is often fatal, while in warm lands summer brings the dreaded fever. It would seem that sex and conjugal condition are also factors in longevity, for apparently males are shorter- lived than females, and bachelors do not live as long as married men. QUESTIONS FOR DISCUSSION 1 . Why do you think the population of Europe during the Middle Ages was stationary? 2. Show the great increase during the 19th century. 3. Give reasons for it. 4. State the theory of Malthus. 5. Criticize it and show the falsity of his fears. 6. Compare the countries of Europe in respect to their rates of increase. 7. Show the enormous rate of increase of population in the United States. 8. To what is this due? 9. What continents are most densely populated? Our Increasing Population 155 10. What countries of Europe are the most and least densely populated? 11. What is the average density of population in the United States? 12. How does it vary from East to West? 13. How does it compare with Europe? 14. Show how the center of population has moved westward. 15. Show how our population is distributed by race; by nativity. 16. Distribute population according to sex; according to age. 17. What are vital statistics? 18. Compare the birth rates in France and Germany. 19. Compare the birth rates in America of the native and foreign born. 20. What will be the result if this difference continues? 21. Give reason for our falling native birth rate. 22. Where is it most, and where least, apparent? 23. Show the falling death rate in Europe. In America. State the reasons. 24. Describe some other influences that affect the death rate. TOPICS FOR SPECIAL REPORT 1. Effects upon population of scientific farming. 2. Pressure of population upon food supply in China and India. 3. Thomas Mai thus — his writings and their effects. 4. The Law of Diminishing Returns from land. 5. Relation between the above law and the Malthusian theory of population. 6. The causes for the increase in Germany's population from 1870-1910. 7. Medical science and the lowering of the death rate. 8. Infant mortality — causes, effects, remedies. 9. Relation between occupation and density of population. REFERENCES Bailey. Modern Social Conditions. Chapters III to VI inclusive. Bonar. Malthus and His Work. Ellwood, C. A. Sociology and Modern Social Problems. Chapter rx. 156 Problems of American Democracy Mangold, G. B. Problems of Child Welfare. Chapters I— III. Mill, J. S. Principles of Political Economy. Book 1. Newsholme, T. The Declining Birth Rate. Quick, H. The Good Ship Earth. United States Census Reports. CHAPTER XIII Americans — Old and New I. Early immigration of the nineteenth century i . Waves of immigration : a. Number b. Causes 2. Nationalities represented : a. Irish b. Germans c. Scandinavians II. Later sources i. The change 2. Italians 3. Slavs 4. Russian Jews 5. Other groups Early Immigration of the Nineteenth Century. — The increase in our national population, as already indi- cated, was partially the result of successive Vi^flvcs of waves of immigration that came to America immigra- from Europe. This immigration has affected n^\ our racial and social heredity. The new element has influenced and, in turn, been influenced by our social environment. These newly transplanted Europeans repre- 157 158 Problems of American Democracy sent various strange nationalities of the Old World and present a serious problem of adjustment in the New World, As water seeks its level, so population moves from dense to sparsely settled regions. The countries principally con- tributing to our early immigration were Great Britain and Ireland, Germany, and Scandinavia. Between 1820, the first year for which we have statistics, and the present time over thirty million immigrants have come to America. Half of this number has arrived since 1890, which date marks the beginning of immigration on a large scale. During this period, the sources of immi- gration have steadily shifted from northern Europe to the Mediterranean lands. For this reason we speak of the early, and of the later, immigration of the nineteenth century. In 1820 the number of immigrants was eight thousand. This group increased slowly, not passing the one hundred thousand mark until the 'forties were reached. Causes. . . Two significant dates are 1846 and 1848. The former marked the failure of the potato crop in Ireland, while the latter ushered in the political revolutions of Central Europe. Both events sent large numbers of immigrants to America, but the increase of numbers was checked by the outbreak of the Civil War. In the 'seventies the numbers rose again, growing still larger in the 'eighties. The propor- tion declined, however, during the 'nineties. With the open- ing of the twentieth century and up until the outbreak of the World War, immigration to the United States assumed enormous proportions, passing the mark of one million annually. It is interesting to note how the fluctuations in immigration have corresponded to economic conditions in the United States. The curve of migration corresponds Americans — Old and New 159 almost exactly with the rise and fall of national prosperity in this country. Because our institutions are modeled largely upon those of Great Britain, American history has its beginnings in England. Her contribution to the early colonists „ . .. was numerically the greatest — English, Scotch, ties: and Welsh immigration to this country continu- ing long after the war for independence. Ireland, however, has occupied a unique position in American history. From 1820 to 1850 the Irish made up two-fifths, and, during the 'fifties, one-third of our total immigration. The population of the island was reduced one-half by famine and emigration. There are probably now more Irish in America than in Ireland itself, and the people have decidedly colored our national character. At first the Irish immigrant was received into the "pick and shovel caste," but he has risen rapidly from the ranks of unskilled labor to positions of honor and trust in the community. Many Americans prominent in public life are of Irish descent, for they have shown rare capacity in executive positions. v Many, however, have not advanced, because the Irish-American, as compared with the German- American, seems to fall into extremes of conduct. The German-American element in our population is of equal importance. Over five millions of Germans came to this country during the last century. At first, The this migration was due to religious oppression, Germans - but later it was the result of political oppression. As com- pared with the Irish, this group of immigrants was steady, thrifty, and provident. Because of different language and customs, the German element in this country has been more difficult to assimilate than the Irish. Germans tend to 160 Problems of American Democracy settle in communities, like those in Pennsylvania, Mis- souri, Illinois, and Wisconsin. They have become skilled artisans, and small tradesmen and they have also attached themselves to the soil. The Irish have been fond of com- petitive sports and athletic games, but the German- American has found interest in gymnastic societies, festi- vals, and choruses requiring cooperation rather than competition. The Irish policeman and the German band were typical of opposing racial characteristics. At the present time there are probably over a million people in the United States who were born in Norway, Sweden, or Denmark. Norway has given to us Scandi- a greater percentage of her people than any navians. other country except Ireland. I he home of the Scandinavian immigrant has been the Northwest, including the states of Minnesota, Wisconsin, Illinois, North and South Dakota, and Iowa. The Irish immigrants were almost entirely Catholic, but the Scandinavians were Protestant. This group has recruited the rural farming population of our country and has also played an important part in the lumbering and transportation industries. In point of literacy this group leads. Like the German and the Irish migration, the Scandinavian immigration to this country has about ceased. Later Sources. — In the last two decades of the nine- teenth century a remarkable change began to take place in The the character of American immigration. Pre- change. viously, the source of supply had been drawn from northern Europe in the Teutonic and Celtic countries of Scandinavia, Germany, Great Britain, and Ireland. Now the source of supply began to shift to the Southeast, including the countries of Italy, Austria, Hungary, and Americans — Old and New 161 Russia. This change is easily perceived by a study of the following table, which gives* the percentage of immigration for six groups: 18S2 1907 Great Britain and Ireland .... 22.8% 8.8% Germany 3*-7% 2.9% Scandinavia 13-3% 3-9% Total 67.8% 15.6% Italy 4.1% 22.2% Austria-Hungary 3-7% 26.3% Russia . 2.7% 20.1% Total 10.5% 68.6% This table shows that, during recent times, the per- centages of immigration from the countries of northern and souther Europe have been practically reversed. The change in the character of our immigration is likewise significant. A line drawn diagonally across Europe from northeast to southwest separates two distinct civilizations. The northern area (except France, from which we receive few immigrants, and Ireland) is Protestant and, generally speaking, has been accustomed to some degree of political freedom. The southern area is Catholic in religion and, as yet, not altogether accustomed to free institutions. Such a geographical line would also separate literacy from illiteracy, and the intelligent artisan and farmer from a backward peasantry scarcely removed from serfdom. Finally, it would separate the Teutonic races from the Latin and the Slav. The European type north of this imaginary line is similar to our colonial stock and is capable of adjusting itself to American institutions. The races to the Southeast, however, present a more difficult problem of amalgamation. Whereas in earlier times the L 162 Problems of American Democracy immigrants to America often sought a refuge from religious and political persecution, the cause of the more recent immigration is largely economic. Americans oe the Future — Waiting at Ellis Island Before the World War, Italy was sending to our shores between one quarter and one half a million immigrants The annually. The reason for this Italian immigra- itaiians. ^ on j g en ^ re ]_y economic, for in the native land living has become precarious. The rich resources of America call the Italian from his impoverished and over- populated land. The Italian immigration has settled largely in the North Atlantic states, showing a great tendency to congest in cities. Often an entire village has been transplanted to one street in the ghetto of a great city. Only one-fifth of the immigrants are women, and Americans — Old and New 163 the absence of family ties encourages a migratory life. Hence many shift from place to place, borne along with the tide of a fluctuating labor market. After acquiring a little of the world's wealth, they often seek to return to their native Italian village. A distinction, however, should be made between the North and the South Italian stocks, which are fundamentally different. This racial distinction may be read in different physical characteristics, while traits of character are also divergent. The better class of north Italian stock often seeks Argentina and other South American lands, where it becomes an important factor in industrial enterprises. The occupations of the Italian in America include construction work, trading, and farming, as well as many forms of unskilled labor. At the present time there are nearly two million Slavs in the United States, half of whom are Poles. So great is the number of the various Slavic groups that their r The Slavs. European habitat is a Babel of tongues and a mass of confusion. In numerical proportion we find, after the Poles, the following groups, — Bohemians, Moravians, Slovaks from the Carpathian Mountains, Slovenes from the head of the Adriatic, Croatians, Dalmations, Russians (exclusive of the Hebrews), Bulgarians, Servians, Monte- negrins, Slavonians, Ruthenians, Lithuanians, and Letts. Three-fourths of these immigrants are males, and their illiteracy is extremely high. The Slavs belong almost entirely to the class of unskilled labor which find occupa- tion in the mines and in the great manufacturing industries where brawn, not brain, is essential. They have settled mainly in the mining and industrial region which has its central point in western Pennsylvania. An exception is found in the case of Poles and Bohemians who settle upon 164 Problems of American Democracy farms. The Slavs are remarkable for their fecundity. Large families and high birth rate are the rule. They are slow in assimilation, and many of their different groups seek to found in the New World a nationalism difficult of attainment in the old. The future of Slav immigration is of vital importance, for immigration has scarcely touched the millions of Slavs in Russia. So far most of this immgiration from Russia has been largely Hebrew in character. At the present time there are over two million Hebrew immigrants in America, so that one-fifth of all the Jews in Russian the world reside in the United States. America jews. - g m( j eec [ t^g " Promised Land." As compared with other groups, the Hebrew seeks to bring over his entire family and to make America his permanent home. The Jews have settled almost entirely in the cities, pre- ferring commerce and trading to manual labor. Garment and cigar making are more attractive to them than ordinary unskilled labor. The sweat shop industries are good examples of the exploitation of the Jewish immigrant. There are comparatively few Jews in prison or in the alms- houses. Intellectually, they rank higher than other immi- grants, as may be readily seen by the records of school children in foreign districts. Out of the six million Jews in the Russian pale, nearly two million have been forced to America by the fire of persecution. A background of centuries of race prejudice has so cemented this group that religious and other traditions at first prevent their quick absorption into American civilization. However, they later assume many American characteristics, and the rise of the Hebrew in wealth and social position is marvelous. Americans — Old and New 165 The attempted Russiiication of Finland drove many- thousands of these people to America. Like the Swedes, the Finns have become farmers in our great other Northwest. The Magyars, or Hungarians, are groups - partly Mongul in blood and descended from the Asiatic invaders who settled in the plains of the Danube River. There are a quarter of a million of these Hungarians in our land and, like the Slavs, they may be found in the mining and industrial regions of America. ■ Many return to Europe with their American earnings, leaving behind, not infrequently, an undesirable record. During the last twenty years, about one hundred and fifty thousand Greeks have come to us from the land of Homer. Among this people, as well as the Italians, the padrone system of labor flourishes. Many boys live under a master, by whom and for whose benefit their labor is exploited. From Asiatic Turkey come not only the Turks, but also the Armenians and Syrians who peddle anything from olive oil to costly rugs. These people are subject to rigid immi- gration inspection, for the disease of trachoma or granulated eyelid is common among them. QUESTIONS FOR DISCUSSION 1. What European countries formerly sent us the greatest number of immigrants? 2. What nations now lead in the number sent us? 3. Show this change from statistics. 4. When did it begin to take place? 5. Compare the civilizations of Northern and Southern Europe with respect to the type of immigrant each sends us. 6. Compare the causes of the earlier and later immigration. 7. Give the causes of the Italian immigration. 8. Compare the North Italian and the South Italian type. 1 66 Problems of American Democracy 0. Give the characteristics of the Slav group and compare it with the Italian. 10. Give the characteristics of the Hebrew immigrants from South Russia. 11. Name and describe the other lesser groups. 12. Where geographically, and in what particular industries, does each immigrant group tend to settle? 13. Try to trace back your own descent. 14. What elements came into our population about the middle of the nineteenth century? Describe each. 15. What has been the nature of immigration to this country since 1880? 16. Give some general characteristics of these later groups. 17. What great problem has this change in immigration given rise to? Explain. TOPICS FOR SPECIAL REPORT 1. The old and the new causes of immigration. 2. Immigration and the Revolutions of 1848. 3. Immigration and the Irish famine of 1847. 4. The European background of immigration. 5. Russia's treatment of the Jews. 6. The World War and immigration. 7. A program of Americanization. 8. The steerage passage to America. REFERENCES Commons, J. R. Races and Immigrants in America. Falrchild, H. P. Immigration. Hall, P. F. Immigration. Reports United States Immigration Commission. Rus, J. A. Making of an American. Ross, E. A. The Old World in the New. Stelner, E. A. On the Trail of the Immigrant. Steiner, E. A. The Immigrant Tide. CHAPTER XIV The Problem of Immigration I. Distribution of immigrants i. Geographical 2. Industrial II. Effects of immigration i . Economic effect 2. Social effect 3. Political effect 4. Illiteracy 5. Poverty and crime 6. Other social effects III. Asiatic immigration 1. Its history 2. Its problems IV. Restrictions on immigration 1 . The usual restrictions 2. The literacy test 3. A temporary check Distribution of Immigrants. — We have just observed the tendency of immigrants to congest into groups and have noted the favored spot of each national group. If, however, the immigrants to this ^Iphicai. country had distributed themselves evenly throughout the length and breadth of the land, the problem of immigration would be easy of solution. But, as a matter of fact, those who have come to this country from Europe have settled largely in the great cities, and in the North Atlantic and Middle states of the East, and in the North Central states of the Middle West. Only six per cent 167 1 68 Problems of American Democracy have settled in the far West and five per cent in the South. Of course the reason for this geographical con- centration is to be found in the fact that the West is agricultural, while the South is not only agricultural but is also well supplied with negro labor against whom competition is difficult. We have already seen the characteristic industries of the different nationalities of our immigrant population. As a . , , general conclusion, it is safe to say that four- Industrial. " , J fifths of our recent immigrants belong to the group known as unskilled labor. The important industries in which they are engaged are mining and manufacturing, construction work, transportation, and domestic service. Agriculture does not play an important part in the life of the immigrant. Effects of Immigration. — The economic effect of immigration is well illustrated by the attitude of organized Economic labor upon the question of unrestricted immi- gration. Organized labor asserts, with much truth, that immigrant labor has lowered wages by its willingness to submit to a lower standard of living than that accepted by the American workman. Therefore, just as the American manufacturer is protected, so should American labor be safe-guarded, in order that the higher standards of living of American workmen may not be lowered by the low wage of immigrant labor. On the other hand, there may be an economic need for unskilled immigrant labor to perform the work spurned by American labor. Hence, there seems to be a real place for immigrant labor in the United States. For example, great construction enterprises are carried on by gangs of immigrants, who toil in our mines and foundries to make America an industrial The Problem of Immigration 169 leader. Instead of going upon the farm, colonies of foreigners settle around great industrial centers. As a result, the exploitation of the immigrant has been great. He is thrown into the maelstrom of industry with its long hours of work, dangerous trades, and unhealthy working conditions. This problem we shall meet again, but it is \most acute among the ignorant immigrant classes. If the American worker has been displaced by his lower-waged rival, he has more often been lifted into the higher plane of skilled industries. He has left, rather than been forced out of, the ranks of unskilled labor. The recent immigrants from southern Europe are racially different from native born Americans and from the earlier representatives of northern Europe, who were social close to us in blood and civilization. Conse- e ect * quently the newer immigrants are more difficult to assimi- late. Of course, America is the "melting pot" of nations, where there is brewing a national character whose exact nature is difficult to fortell. Whether the new mixture will be sociologically inferior or superior to the old, it is impossible to predict. Only its future development in the new environment can answer that question. The public schools are doing the wonderful work of Americanizing the children of the immigrants, and the rapidity of the process among the second generation is remarkable. Community centers and night schools are solving the more difficult problem among the older immigrants, who seek to learn at least the rudiments of our language. The homes in the congested immigrant section are frequently un- healthy, and the position of woman is often unfortunate. More than anything else, do we fear the lowering of American ideals and standards of living. 170 Problems of American Democracy A Crowded Street in New York's Ghetto The political effect of immigration may be seen especially in the conduct of municipal government in the United Political States. Massing in large groups in our great effect. industrial centers, immigrants here come to wield political power. Often the " declaration of intention " to become citizens of the United States has been sufficient qualification for voting in municipal elections. Conse- The Problem of Immigration 171 quently, the political "boss" has rallied around him the foreign vote of our large cities in exchange for favors and rewards of various kinds and descriptions. If America is to have clean and efficient municipal government, our cities must be purged of this form of political bribery. During the World War, it was feared that the foreign vote and influence might play an insidious part in national politics and in international policies. However, this fear of the so-called "hyphenated" American seems to be groundless. The amount of illiteracy in the United States is due partly to the negro in the South and to the immigrant in the North. The World War revealed the pres- Illiteracy. ence of 7,000,000 adult illiterates in this country. The number of illiterates among the foreign born was about equal to that among the native born, in spite of the fact that the foreign born comprised only a small minority of our total population. In Massachusetts, the percentage of illiteracy for the native population was five-tenths per cent, and for the foreign born twelve and seven-tenths per cent. A special prison census taken some years ago showed that twenty-three and seven-tenths per cent of the male white prisoners in the United States were Poverty foreign born, while for the same year twenty- andcnme - three per cent of the total male white population over the age of fifteen years were foreign born. Hence, our immi- grants do not seem to show an undue proportion of crime. The South Italian group, however, has an unenviable police record and shows a high proportion of serious crime. The children of immigrants also show a remarkable tendency toward crime. This is due more to the bad social environ- 172 Problems of American Democracy merit of the city slums in which they are reared than to a criminal tendency in their racial heredity. In the matter of poverty and dependency, the immigrants also have an undesirable record. The number of foreign born in our almshouses is greater than the number of native born whites, although this group constitutes less than one-fifth of the total white population. More stringent laws regarding immigration will undoubtedly cut down this excessive proportion of dependency among the foreign born. Among the recent immigrants, there are about three times as many men as women. This has affected the _ . proportion of sexes in the United States and social has produced a slight excess of males in our total population. A numerical disproportion of the sexes is undesirable. Again, the social evil of vice and immorality has been accentuated by immigration. Inspectors must keep a vigilant watch to prevent the importation and exploitation of friendless women. Another social effect of immigration is found in the tendency to keep down, relatively, the native birth rate. In America, the birth rate of the foreign immigrant is much higher than that of the native white stock. Asiatic Immigration. — European immigration has come to this country by way of the Atlantic and at first its settled largely in our eastern section. A smaller Asiatic immigration has crossed the Pacific and settled along our western coast, principally in the state of California. The immigration of the Chinese began with the discovery of gold in 1849. They later crossed in such large numbers that Congress in 1882 passed a Chinese Exclusion Act. This deliberately and completely forbade the entrance of Chinese of the laboring class into this The Problem of Immigration 173 country. The proportion of Chinese has therefore declined, until at present there are only about seventy-two thousand in the United States. They are found as small tradesmen, in domestic service, and in the fruit and truck industries of California. Our colonial possessions in the Pacific Ocean have a large proportion of Mongolians. These islands have been stepping-stones to America, although numerous stories are current as to how the Chinese have smuggled themselves across the northern border from the Dominion of Canada. British Columbia has a similar problem in the immigration of cheap Hindu laborers known as coolies. As yet the number of these people in our own land is insignificant. The Japanese on our Pacific coast, however, have been a prob- lem of increasing importance. Although these Asiatics did not begin to cross -over to America until after the Chinese, they now outnumber the latter. They have settled, likewise, in the cities and agricultural valleys of the Pacific slope, a considerable proportion of the fruit industry of California having been developed by them. As their numbers increased, the industrial competition and race friction grew more acute, and to-day a slight race problem exists in California. The legislation of the state discriminates against the Japanese in matters of land holding and public school education. This situation has caused the national government considerable uneasiness and has often strained the friendly relations between the two great nations. There is no Japanese exclusion act, but a "gentlemen's agreement" between the two governments lessens the amount of Japanese immigration to this country. The problems arising from the Asiatic immigration are more intense than those resulting from European im- migration. Illiteracy is high among Asiatics, as is also 174 Problems of American Democracy the disproportion between the sexes, for the Oriental immigration is almost entirely male. Many also have its not sought to make America their permanent problems. h omej Du t to return to Asia with the wealth secured in the new land. The industrial problem of low wages and low standards of living is intensified with Asiatic immigration, while the political objection to such immigration also holds. More important than either, however, is the social effect of Asiatic immigration, because the Mongolian presents an almost impossible problem of assimilation. The Asiatics are so homogeneous that race difference presents in their case a barrier regarded by many as insuperable. If this Oriental immigration were not excluded, America would be confronted with a Mongolian race problem in the West similar to the negro problem in the South. We have seen that, other things being equal, immigration tends to move from a dense area of popula- tion to a rich and sparsely settled region. Hence the pressure of the millions of over-populated Asia upon the thinly settled lands of the New World. To overcome this undesirable mixture of such totally alien groups, a policy of exclusion seems to offer the only effective remedy. Restrictions Upon Immigration. — Except for the exclusion of Asiatics, little restriction until recently has The usual been placed by our national government upon restrictions. f ore ig n immigration. Because our territory seemed boundless and our resources limitless, we welcomed European settlers to help us lay the foundation's of our future greatness. But now our national boundaries seem fixed, and free land in the United States is being gradually exhausted. Again, the character of our immigration has changed, and the south European stocks bring us a different The Problem of Immigration 175 racial heredity. The older immigrants delight to call themselves Americans and would exclude as "undesirable" the newer arrivals. In this there is an element of truth. Many European nations have often used the United States as a "dumping ground" for criminals, paupers, and defectives. Agitation for restriction upon immigration goes as far back as the "Native American" and "Know Nothing" parties of the ante helium days. In 1875 a law was passed excluding criminals and immoral women from our shores. In 1888 the labor unions succeeded in having Congress pass a law prohibiting the importation of foreign contract labor. Numerous immigration laws have been passed in recent years, and offices of inspection have been created to keep out the following classes of undesirables: (1) contract labor; (2) anarchists; (3) those immigrating for immoral purposes; (4) criminals (except for political offenses not recognized by the United States) ; (5) paupers and those likely to become public charges because of lack of visible means of support; (6) mental defectives, such as the insane and feeble minded; and (7) those having infectious diseases, such as tuberculosis or trachoma. Steamship companies, which formerly made large dividends from their steerage cargo, are now required to transport back to their native land all immigrants who fail to pass our inspection laws. If the tests were made in European ports, the futile journey across the sea would be avoided. At pres- ent, Ellis Island, near New York City, is the great inspec- tion point and clearing house for arriving immigrants. These restrictions do not seem stringent enough for the leaders of organized labor, who oppose the competition of the low- waged immigrant. Many advocate a greater head tax or possession by the immigrant upon his entry into 176 Problems of American Democracy America of a certain specified sum of money. The most popular scheme, however, is the literacy test which requires the applicant for admission to our shores to literacy be able to read or write in some language, not necessarily English. Such a bill passed Con- gress at different sessions, but was vetoed successively by Presidents Cleveland, Taft, and Wilson. However, this bill was finally enacted into law over President Wilson's veto. Such a test cuts down the amount of immigration, if this is the only end desired. It is easy of application and may be applied at foreign ports, thus saving the passage to America of many otherwise disappointed immigrants. Many, however, do not desire this restriction on immigra- tion because they feel America needs a supply of unskilled labor. Again, others feel that the infusion of new blood, as well as the various cultures of Europe, will make the future America richer and better after the difficult period of adjustment and assimilation is passed. Granting, for the sake of argument, that it is necessary to restrict the amount of immigration, will the literacy test be most productive of good results? The easiest way is not always the best. Ability to read or write does not necessarily mean good citizenship. A literacy test may not be the best means of selection, because it is neither an accurate valuation of the biological worth of a particular stock nor a measure of individual character and native ability. During the World War immigration from Europe practically ceased. With its conclusion in the autumn of A tempo- 19 1 8 the problem of immigration assumed a rary c ec . new aS p ec |- # Vast numbers of European immi- grants sought admission to America as an escape from the ravages of war and from the burden of excessive taxation. The Problem of Immigration 177 Within a year after the cessation of hostilities the number of Europeans desiring to migrate to America grew to alarm- ing proportions. The war had shown us, however, the evils of undigested elements in our population, and the danger of admitting immigrants at such a rapid rate that their assimilation and Americanization might be difficult. This popular fear was expressed in the 1920-21 session of Congress. A law was passed which temporarily restricted the immigration of any foreign group to three per cent of the number of that nationality residing in the United States at the time of the 19 10 census. QUESTIONS FOR DISCUSSION 1. Explain the geographical distribution of immigrants in the United States. 2. What are the chief occupations of the immigrants? 3. Explain the economic problem resulting from immigration. 4. Explain the social problem. 5. Discuss the political effects of immigration. 6. State the effect of immigration upon crime. 7. State the effect of immigration upon pauperism. 8. Give the history of Asiatic immigration to America. 9. Where and in what industries have the Orientals settled? 10. Why was the Chinese Exclusion Act necessary? 11. What is the situation with Japan in this respect? 12. What is the economic basis of the so-called "Yellow Peril"? 13. What groups of immigrants were first excluded? 14. Make out a case for and against the literacy test. 15. What is your own opinion with respect to temporary restric- tions upon immigration? 16. Discuss the good that may result from the intermingling of races in America. 17. Explain the temporary or permanent evils that may result from such intermingling. M 178 Problems of American Democracy TOPICS FOR SPECIAL REPORT 1 . Ellis Island. 2. A foreign quarter with which you are familiar. 3. A study of localities where the percentage of foreign born, or the percentage of those born of foreign parentage, is comparatively high. 4. The 1 92 1 law for proportional restriction of immigration. 5. Organized labor and the unskilled immigrant. 6. Resolved "that all immigration to the United States should b>e prohibited." 7 . The effect of the exclusion of immigrants upon wages and prices. 8. Immigration and Americanization. 9. The consequences of the Japanese dogma of racial equality. REFERENCES Antin, M. The Promised Land. Brandenburg, B. Imported Americans. Coolidge, M. R. Chinese Immigration^ Hourwich, I. A. Immigration and Labor. Kawakami, K. K. Asia at the Door. Kelsey, C The Physical Basis of Society. Chapter IX. Mayo-Smith. Statistics and Sociology^ Chapters IV to VIII. Steiner, E. A. From Alien to Citizen. Warn, F. J. The Immigrant Invasion. -Zangwill, I. The Melting Pot. CHAPTER XV The American Race Problem I. Background of the Negro i. Origin of race 2. The African environment 3. Slave trade 4. Slave life 5. Negro characteristics II. Number of Negroes 1. The increase 2. The distribution III. Problems of the Negro 1. Reconstruction 2. The political problem 3. Crime and pauperism 4. Industrial problems : a. Farm life b. Other factors 5. Education and leadership 6. The solution IV. The Indian 1. Early treatment 2. Present condition In addition to the foreign immigrant the negro is another extraneous element in our population. He possesses a still different racial heredity and presents a difficult problem of readjustment to a new physical and social environment. 179 180 Problems of American Democracy Background of the Negro. — The biological evolution of mankind was probably from some one, rather than Origin of from several, of the more primitive species. From this common stock race differentiation probably took place. Whether the earliest man was white, black, or of a still different type cannot be positively asserted. Primitive man migrated in several directions from his original home in some central portion of the eastern hemisphere. The natural selection of different geographical environments seems slowly to have developed the different branches of the human race. An imaginary line drawn from England to Java is rich in fossil remains of primitive man. Such a line also separates the Mon- golian to the northeast in Asia from the negro to the southwest in Africa. The Caucasian race lies midway between the two regions, and its different branches occupy the various geographical environments outside this line. Hence some writers believe that here may be found the origin of the human species. One branch migrated to the northeast into Asia, another to the southwest into Africa, while still others, remaining in their original home, became the progenitors of the Caucasian race. The dark skin and other physical characteristics of the present negro had a survival value in the tropics of Africa. In the Asiatic environment there was a different set of survival values, and natural selection worked here to produce the Mongolian race. Long before the dawn of history, the natural selection of different environments thus slowly developed a differentiation into races of the primitive human stock. The tropical environment of the negro helps to explain his racial heredity, which in turn enables us to understand The American Race Problem 181 many of his present physical and mental traits. The nature and permanency of his physical characteristics are obvious. The mental traits, however, are less apparent but equally important. The natural selection African ea- . vironment. of a tropical environment, operating for thou- sands of years, has produced in the negro qualities which cannot be overcome by a few centuries of civilization. A few examples will illustrate this point. Severe physical exertion is fatal in the tropics, so that the very energetic are usually eliminated. Here nature furnishes a bounti- ful supply of food and natural selection places no premium upon industry and foresight, as it does in colder climates of the North. Since the death rate is high, the birth rate must be correspondingly high in the group that survives. Thus, certain writers seek to explain the laziness, shiftless- ness, and irresponsibility of the negro as part of his racial heredity, which developed during thousands of years in the African tropics. The Spanish planters in the West Indies developed negro slavery before the first cargo of human beings was landed on the shores of Virginia in 1619. Many slave Englishmen of Elizabethan days sought to trade - monopolize this carrying trade. The gallant sea rovers who sailed the Spanish Main were merchantmen or pirates, slavers or men of war, as the occasion demanded. Hawkins made a fortune out of the slave trade and proclaimed this fact upon his family coat of arms. That enormous numbers of negroes were carried to America is attested by the large percentage of negro blood in the mixed races of Latin America. The population of Haiti consists largely of the descendants of slaves. In colonial days there was a famous triangular voyage in which mariners from the 182 Problems of American Democracy North sold slaves to their southern cousins. The slaves were brought from Africa to the Spanish and English plantations, where molasses was taken on board for New England. Here it was made into rum with which to buy- more slaves in Africa. This was not difficult, for this institution flourished in that country where frequent tribal wars furnished a ready supply of slave labor. In some parts of Africa it was difficult to get three men to go on a journey together, for fear that two might conspire to sell the other into slavery. Later the Portuguese and Arabs monopolized the business of procuring slaves for sale on the coast. The passage to America was known as the middle voyage, and the negroes were crowded between decks which were so low that in many cases it was impos- sible to sit upright. So close together were they packed, that the group must turn over in mass at a given signal. The mortality was enormous because the sick, the crazed, and the blinded were often thrown overboard. Slavers calculated upon delivering but a part of their human cargo. This traffic was a dark blot upon American history, made darker by the fact that later the Mayflower was desecrated by use for such purposes. The national government for- bade the importation of slaves after 1808, while the Con- gress of Vienna held in 18 15 at the close of the Napoleonic wars legislated against the traffic in human lives. There are two sides to the story of slavery. In America the negro became Christianized and learned of a higher civilization. In some states, however, it was Slave life. . illegal to teach slaves to read and write. Con- ditions of life under slavery were probably not always so bad as they have been depicted. The material comforts of the American slave compared favorably with the life of The American Race Problem 183; European peasants of the same day. In most cases they were well housed, well fed, and well cared for, because the self-interest of even the cruel planter dictated such a course as profitable to himself. Slave-trading was most pernicious, however, because it broke up the family. At auction sales mother and children, husband and wife were often separated. Most of the slaves accepted their fate stoically, for their moral ideals were low and their conceptions of family life undeveloped. Furthermore, slavery was not calculated to develop in the negro a regard for the property rights of others. It was difficult for the slave to understand the institution of property when his own most sacred possession — life itself — was taken from him. As the master planned the present and future of the slave, it was unlikely also that slavery would develop individual initiative and self-control. Slavery thus hindered the development of independent manhood, and, merely from the economic standpoint, its evils necessitated its final abolition. We have seen the effects of a tropical environment upon the racial heredity of the negro. Some of these slavery accentuated, as, for example, the feeling of irresponsibility and an undeveloped moral sense. character- Under these circumstances, may we expect the family ideals of the negro to compare favorably with our own? Is it natural, too, that slaves, suddenly freed from compulsion, should readily acquire habits of steady industry? Indolence and shiftlessness are partially the results of the new liberty, which allows these elements in their racial heredity to reassert themselves. The ineffi- ciency of negro labor is due partly to his improvident recklessness, and partly to his newly acquired freedom. 184 Problems of American Democracy Prohibition established itself in the South to make negro labor more efficient and to diminish crime. The negro's ignorance and superstition are proverbial, while his unclean- liness exacts a terrible toll. He is deeply religious, but relics of African folkways are to be found in his fabric of Christianity. His imagination and childish love of story telling often lead to an almost unconscious exaggeration and untruthfulness. The negro belongs to a nature people, unmoral rather than immoral. Not only is he affectionate, but his nature is singularly free from vindictiveness. The Civil War showed the loyalty of the negro to the household of his master who was fighting to perpetuate the very institution which kept him in bondage. The negro is ever cheerful and happy; his folk songs constitut- ing a real contribution to American music. Number of Negroes. — The census of 1920 showed over ten millions of negroes in the United States. Although The their number has doubled since the Civil War, increase. ^ e percentage of negroes in our total population has gradually diminished from about fifteen per cent at that time to about ten per cent at present. Although their birth rate is high, their death rate is correspondingly high. This is particularly true in the cities, where the negro death rate is often half as high again as the death rate of the whites. That the negro is not adapted to the environ- ment of the northern states is shown by the fact that his race would die in the North were it not recruited by fresh migrations from the South. There are two conclusions concerning the negro's rate of increase. In the first place, his numbers are not increasing so rapidly as is the white race. On the other hand, the negro is absolutely increas- ing in number, and there is no indication that the race will The American Race Problem 185 die out or become numerically insignificant, like the Indian. The future of America still holds the solution of the negro race problem. Since the negro's original home is in the South, the race question has often been called the Southerner's problem. Nearly nine-tenths of all our negroes, live south The distri- of the Mason and Dixon Line. The "Black bution - Belt" is a broad agricultural plain extending from Virginia to Texas. Here live eight-tenths of all the negroes whose rate of increase in this section is very high. This belt practically coincides with the eleven states which seceded during the Civil War. In the two states of Mississippi and South Carolina there are actually more negroes than whites. Before the Civil War, the negroes lived almost entirely upon the plantations and picked the cotton crop. Since then many have gone to the northern states, but we have seen how natural selection has operated there to keep down their numbers. Again, there has also been a considerable movement into the cities. A similar sad fate has awaited them here, for the negro does not seem adapted to city life. In spite of this fact, in certain cities like Jacksonville, Charleston, and Savannah about one- half of the population is often composed of colored people. Problems of the Negro. — Slavery, threatening the existence of the Union, gave rise to the great Civil War which resulted in its abolition. The Emancipa- R eC on- tion Proclamation issued by President Lincoln structlon - was a war measure, the legality of which was later estab- lished by constitutional action. The Civil War thus resulted in the passage of the thirteenth, fourteenth, and fifteenth amendments. The first abolished slavery, the second granted the negro citizenship, and the third 1 86 Problems of American Democracy enfranchised him. A Freedmen's Bureau, created to protect the black man in the enjoyment of his new rights, began the work of education. Suddenly, and with no preparation, between four and five million slaves became American citizens. The later enfranchisement, without training or preparation, led to sad results. The "carpet bagger" directed the ignorant colored vote for his own benefit, and an era of negro domination followed the war. Colored legislators sat in the proud halls of southern capitals, while illiterate ex-slaves wasted the public funds in a wave of corrupt and foolish extravagance. Federal troops organized military districts and made fearful the dark days of the Reconstruction period. Under President Hayes the troops were withdrawn, and the South recov- ered, but did not forget the era of negro rule. As the whites obtained gradual control the negro was driven from politics. The new constitutions of many southern states, adopted since the war, provided for the practical disfranchisement of the negro. Mississippi led this movement in political 1890, when the new constitution provided that problem. . every voter should be able to read or to interpret a clause of the constitution. The negro has found this task difficult before a Southern election board. Other states have added a " Grandfather's Clause," which exempts from the literacy test the descendants of those who voted prior to i860. The negro is legally kept from voting, not because of race, but by reason of illiteracy. Therefore, by the political problem of the negro, we mean that arising from the franchise and from the principle of equality before the law. In the South the negro has little share in making the laws and but slight participation in their administra- The American Race Problem 187 tion. Mob spirit, both dangerous and contagious, some- times prevails and presents a serious problem in social control. It feeds upon ignorant race prejudice. Enfran- chisement, however, might increase rather than diminish race friction. Lynchings also occur in the border states of the North where the negro possesses the right to vote. A greater social control and a more intelligent citizenship are necessary to prevent such disorders. Another effect of negro suffrage is seen in increased political corruption, for the negro is often ignorant and illiterate. In some northern cities the negro vote is as easily controlled as the immigrant's. The amount of crime among the negroes is far in excess of that warranted by their proportion to the total popula- tion. This tendency seems to be increasing Crime rather than decreasing. It is greater in the and . pauperism. border states of the North than in the South, where tradition has fixed the negro's place in society. The maximum of crime among negroes is reached in the city, where the congested negro quarter furnishes the cause of numerous disturbances for the local police authorities. Furious religious revivals and festivals are regarded as dangerous to these temperamental people. Strong drink may make the docile and good-natured negro quarrelsome and criminal. Vice, as well as crime, exists among the negroes. The proportion of illegitimate births among the colored population is much greater than that among the whites. Indeed, in a few cases, a permanent family life hardly exists. Negro pauperism is also high, for, unfortunately, the negro group contributes an undue pro- portion of its members to the almshouses and to the various charitable institutions of our great cities. Students have 1 88 Problems of American Democracy estimated that from a half to three-fourths of the negroes live below the poverty line. The industrial problem of the negro is often regarded as fundamental in the matter of race adjustment. Its essence industrial * s ^h e ma king of the negro an efficient and problems: dependable factor in economic production. Economic independence will help the race to solve the problems of crime and pauperism. The negro must learn habits of steady work, the lessons of thrift and industry, and accustom himself to a system of labor by free contract. Much has been accomplished since the break-up of the old system, when the freed slave was turned loose upon a new and strange economic environ- ment without either land or capital. However, much remains to be accomplished, for the industrial progress of the negro has been slow in comparison with that of many immigrant groups. The typical negro is a farmer and may be found in the cotton fields of the "Black Belt." Only in rare cases does he own the land, for a survival of the plan- tation system flourishes in the large estates of the white landlords. These are broken up into small tracts worked by the negroes. Since most of the negroes are poor, the landlord supplies not only the tract of land with its little cabin, but also the few tools and other instruments of production. There is often a plantation supply store at which the negro runs a charge account for the food and other supplies which he purchases. After the cotton crop is picked, it is sent to the neighboring gin and a settlement made. When the rent, the account at the plantation store, and other charges are deducted, the balance is turned over to the dusky farmer. This is small enough, for prices are high and the interest upon credit purchases heavy. A con- The American Race Problem 189 tract has been signed, which holds the negro to his job and fugitives are severely treated by the law. The planter, however, often finds it a difficulty to secure negroes for steady work. The great cry of the developing South is for labor and more labor. Hence some of our immigration, like the Italian, is slowly going south and competing other with the negro upon the farm and cotton field. ■ actors - In spite of race friction, the Southerner seems to prefer the labor of the negro around whom his native traditions cluster. The negro is better off working steadily upon the farm than floating haphazardly in the current of unskilled labor. A migratory negro of the ignorant laboring class often gets into trouble and is regarded suspiciously in the South. Negro ownership of land is as desirable in the South as native peasant ownership in Ireland, where the agrarian problem is somewhat similar. Slowly pro- gress is being made, and many negroes own considerable property. The per capita wealth of the colored popu- lation has increased, but among the masses poverty is still the rule. Industrial education is the crying need of the negro, if he is to be trained to habits of steady industry and to rise above the group of unskilled labor. Great trade schools, like Tuskegee and Hampton, have done Education . ■ and leader- much to create intelligent workers and good ship. citizens. Booker T. Washington, the late prin- cipal of Tuskegee, who emphasized this side of negro education, was regarded generally as the great leader of his race. A different view, however, is held by Dr. Wm. E. B. DuBois, who pleads for the higher and more cultural education of the negro. Undoubtedly this kind of educa- 190 Problems of American Democracy tion is necessary to provide colored teachers for the negro race. The negro must help solve his own problems and this is impossible without intelligent native leadership. From the negro universities of Atlanta, Fiske, and Howard have come scores of intelligent colored men and women equipped to serve as professional teachers in the colored schools of the South. In the distribution of public and private funds between the colored and the white schools, the basis of determination should be one of need and necessity. Many other men of letters and race leaders may be cited among the negroes. Paul Lawrence Dunbar acquired fame as a poet, while one of the pictures of Mr. H. O. Tanner hangs in the galleries of the Luxembourg. The present negro problem is the natural outgrowth of early economic and social conditions. Let us remember The that the negro is here not at his own request, solution. k ut as a resu i t Q f tne ac tion of our ancestors. "But what shall we do with the negro "? is the oft-repeated question. Liberia was founded as a colony in Africa for the freed slaves of America. The experiment, however, can not be called successful and the precedent is not likely to be followed. The transportation of ten millions of negroes, even if desired, is impracticable. In his present stage of economic development, it is difficult to see how the negro could properly support himself. He might even lapse into a state of barbarism. Some sensational writers have feared the assimilation of the freed negroes with our own Caucasian stock. This is alike undesirable and improbable. There is no one patented solution for any social or economic problem, nor may future conditions be prophesied. The present policy seems to be that of a separate, but friendly, coexistence of the two races. An The American Race Problem 191 intelligent leadership and sound industrial education will develop the negro into a useful and law-abiding citizen. When he becomes an efficient producer, his own poverty and crime will diminish. Then the South will be more likely to grant him genuine political rights. In the mean- time, an intelligent understanding of the negro problem will tend to remove many of the difficulties involved in its solution. The Indian. — In addition to the negro and the Mon- golian, America has the Indian. His problem is interesting historically. In comparison with the number of Early negroes in this country, the present quarter of a treatment - million of Indians is insignificant. Like the negro, however, the Indian has been the victim of conditions over which he had no control. The European settlers drove him from his hunting grounds and appropriated for themselves his original home. In the wars of conquest, many regarded the dead Indian as the only good Indian. To be sure, William Penn and Roger Williams stand out as pleasing contrasts to this opinion. Before the advancing Caucasian tide the Indian, like the buffalo, has disappeared below the horizon. There are probably as many Indians to-day as when Columbus discovered America. The Indian population has decreased relatively, however, because his birth rate is much lower than that of the whites. Contact with European civiliza- tion seemed fatal to these nature people. They learned its vices rather than its virtues. Alcohol, it is said, has killed more Indians than the white man's bullets. An indoor life, with its resulting tuberculosis, seems also signally fatal to the Indian. The United States Government has set aside reservations for the Red Man and appropriates funds for supplies and 192 Problems of American Democracy maintenance. While this may be a just policy, the lack of necessity on the part of the Indian for self-support is Present bound to encourage laziness and undermine inde- conditions. p en d en t manhood. Again, our dealings in the past with these people have not always been free from corruption and injustice. It is hoped that a better day is dawning. Government schools, like Carlisle, seek to teach the Indian habits of industry and to give him vocational training. As a result, many Indians have adopted our civilization and are being assimilated into the American population. QUESTIONS FOR DISCUSSION 1. Discuss the origin of race and show the working of natural selection in race development. 2. Show the effect of the tropical environment of Africa upon the racial heredity of the negro. 3. Sketch the history and horrors of the slave trade. 4. Give the good and the bad effects of slavery. 5. Give some characteristics of the negro. 6. Explain some of these in terms of his physical and social environment. 7. How does the rate of increase of the negro compare with that of the whites? What of the future? 8. Where is the negro not relatively increasing in numbers? 9. Give figures to show that the negro is the race problem of the South. 10. What states have a greater colored population than white? n. Where and what is the "Black Belt"? 12. Sketch the political status of the negro. 13. How is the fifteenth amendment circumvented? 14. What is your opinion as to the political equality of the negro? 15. Is the negro protected in his rights of citizenship? 16. Discuss crime and pauperism among the negroes. 17. What is the extent of poverty in this group? 18. What is the essence of the negro industrial problem? The American Race Problem 193 19. Discuss the system under which the Black Belt is farmed. 20. Compare the two types of negro education. 21. Name some leaders of the race. 22. What is your idea regarding the outlook of the negro problem? 23. How has the Indian been treated by the early settlers? By our national government? 24. How has contact with civilization affected the Indians? 25. Is the Indian dying out? TOPICS FOR SPECIAL REPORT 1. Slave life in the early South. 2. The life of Booker T. Washington. 3. Tuskegee Institute. 4. Colored institutions for scholastic training. 5. The negro and city life. 6. The Black Belt. 7. The Freedmen's Bureau. 8. The mulatto — his good and bad side. 9. The negro and the franchise. 10. The Ku Klux Clan. 11. The present condition of the negro. REFERENCES Baker, R. S. Following the Color Line. Du Bois, W. E. B. Souls of Black Folk. McKenzie, F. A. The Indian. Merriam, G. S. The Negro and the Nation. Miller, K. Race Adjustment. Negro Education. Bulletin 1916, Nos. 38 and 39, Bureau of Education. Stone, A. H. Studies in the American Race Problem. Tillinghast, J. A. Negro in Africa and America. United States Census Reports. Washington, B. T. Future of the American Negro. Washington, B. T. The Negro Problem. Washington, B. T. Story of the Negro. Washington, B. T. Up From Slavery. Washington, B. T. Working with the Hands. N CHAPTER XVI Possibilities of Our Economic Environment I. The physiography of the United States i. The Atlantic Slope 2. The Mississippi Valley 3. The Rocky Mountain Plateau 4. The Pacific Coast 5. Our new possessions 6. America's possibilities II. Agricultural resources 1. Their development 2. Chief crops 3. Timber resources III. Mineral wealth 1 . Its development 2. Iron and copper 3. The precious metals 4. Fuels: a. Coal b. Petroleum IV. Water resources 1. The Mississippi System 2. Other waterways 3. Water power: a. Its importance b. Examples c. Conclusion Heredity and environment are the two pillars upon which the social structure is built. We have sketched the physi- cal and social heredity of the American nation, and 194 Possibilities of Our Economic Environment 195 attempted an analysis of the elements in our complex population. Natural environment, however, becomes the important factor, as we pass from a survey of the political and the social to the economic evolution of America. It is therefore necessary to consider the natural resources of the United States. The Physiography of the United States. — Continen- tal United States contains about three million square miles and nearly equals in area the continent of Europe. Geo- graphically, it falls into four great divisions: the Atlantic Seaboard, the Mississippi Valley, the Rocky Mountain Plateau, and the Pacific Coast. The area between the Atlantic Ocean and the Appa- lachian Mountains was the first to be settled. Westward the course of industry, as well as of empire, took Thg its way. The Atlantic Slope continues to be the Atlantic . ... slope. most densely populated section, for it is still the commercial and industrial center of the nation. This sec- tion is favored by excellent natural harbors and abundant navigable rivers. There are numerous good sites for water power. The land is fertile and the rainfall sufficient. Behind it the Appalachian Mountains, rich in coal and iron ores, furnish the basis for industrial development. The Mississippi Valley is the great agricultural section of the country. Here the soil is exceptionally fertile and the rainfall abundant. The great plains can be Mississippi divided into agricultural belts by the parallels Valley - of latitude. The wheat belt is in the North, the cotton belt in the South, and the corn belt occupies the central region. The Mississippi river system and the Great Lakes afford a cheap means of water transportation for the bulky agricultural products. 196 Problems of American Democracy The Rocky Mountain Plateau is characterized by in- sufficient rainfall. This arid triangular region is nearly _-■-,, a thousand miles wide in the North, but in the The Rocky _ ' Mountain South it narrows down to a width of but five Plateau. hundred miles. This great plateau, crossed by lofty mountains and deep ravines, extends from the foot hills of the Rocky Mountains, which form the western border of the Mississippi Valley, to the Sierra Nevada range in California. It comprises a third of the entire area of our nation. A large portion has a naturally fertile soil, although the rainfall is lacking. Here we find some of the greatest irrigation projects in America. At present the grazing industry predominates, and this section produces vast supplies of cattle and sheep. The climate of the Pacific Coast varies greatly in the North and South. The southern section has a semi- The Pacific tropical climate and is well suited for the pro- duction of fruits. The localization of the motion picture industry in this region is proof of its pleasant, sunny climate. In the North, the temperature is cooler and the rainfall more plentiful. The Northwest is rich in timber resources. Here are located the best port facil- ities of the West, but the Pacific Coast does not have such good natural harbors as the Atlantic seaboard. The territorial possessions of the United States are geo- graphical extremes. Alaska is sought for its furs and Our new fisheries, but it is also rich in mineral resources, possessions. The island dependencies of the United States possess great strategic as well as commercial value. The principal article of export from Hawaii is sugar. Porto Rico also produces tobacco and coffee. The chief products of the Philippines are hemp, sugar, copra, and tobacco. Possibilities of Our Economic Environment 197 Nature has been very bountiful in her gifts to the United States. Not only is the land rich in mineral wealth, but the soil is very fertile. The great variation in America , s temperature from the North to the South is possibm- increased by the differences in altitude. This variety in climate produces a similar variety of products. Although located entirely within the temperate zone, the United States is almost economically self-sufficient. Good natural harbors and numerous great rivers leading in to the heart of the continent facilitate the problem of trans- portation. This vast, virgin territory opened up to the early settlers economic opportunities that kept pace with the political development of the nation. Agricultural Resources. — America contributed to the world several new agricultural products, including tobacco, the potato, and Indian corn or maize. Tobacco . and indigo played an interesting part in the deveiop- development of the southern colonies. After the invention of the cotton gin, cotton became the great southern crop, which influenced our national history before the Civil War. Further North the English settlers strove to raise wheat, but were more successful with the native Indian corn. A corresponding change took place in their diet. The one crop system, which was followed, tended to exhaust the soil. This fact drove many into the rich free lands of the West. At that time labor, not land, was the scarce factor in production, as is generally true in new countries. A stimulus was therefore given to the invention of agricultural machinery, and Yankee ingenuity became justly famous. Productivity per' acre may be low in America, but productivity per man is relatively high. The growth of cities has developed dairying and trucking, 198 Problems of American Democracy which are largely localized around the great population centers of the Middle Atlantic States. Agriculture is still our chief industry. Corn, wheat, and cotton are the three staples. Corn takes first place, for Chief its annual value is equal to that of the other crops ' two crops combined. It is largely used for fattening swine and is shipped to Europe indirectly in the form of pork. The corn belt comprises Iowa, Nebraska, Illinois, Kansas, Missouri, Indiana, and Ohio. Hay is generally the second crop in value, but like potatoes and oats, its production is not localized in any one section. Wheat flourishes in the Northwest, particularly in the Dakotas and Minnesota. Kansas, Washington, Illinois, Nebraska, Ohio, Missouri, and Indiana complete the wheat belt. Both wheat and cotton are important articles of export. The cotton belt comprises South Carolina, Georgia, Alabama, Mississippi, Arkansas, and Texas. Here the price of cotton is the barometer of prosperity. The Atlantic Slope was originally well wooded and stocked with game of all kinds. The early settlers waged Timber war not only against the Indians, but also with the wild beasts and with the forests. A clearing was made by chopping down the trees and then burning off the stumps so that crops might be planted. At present there are five great timber sections in the United States: the Northeast, the South, the Great Lakes, the Rocky Mountains, and the Pacific Coast. In Maine and the contiguous district "'still stands the forest primeval, the murmuring pine and the hemlock." Among the important trees which flourish here, the white pine is most valuable, but is becoming scarce and expensive. The wood pulp industry has denuded great sections of spruce forests. Possibilities of Our Economic Environment 1 99 The timber lands around the Great Lakes contain some harder woods, but are mainly coniferous in character. The chief trees of the great forests in the Rocky Mountains are the western yellow pine, the spruce, and the red fir. The southern states are important chiefly because of the southern or yellow pine. The swamp forests along the A Washington Forest of Douglas Fir coast have cypress and hard woods. The Pacific Coast section is the most heavily timbered of all. The important varieties are the fir, hemlock, pine, cedar, spruce, and redwood. Mineral Wealth. — As early as colonial days the iron industry began in America. Charcoal smelting, then the method used, was made possible because of an abundance of 200 ' Problems of American Democracy cheap timber. The process, however, could be more effec- tively carried on by the utilization of coal deposits. Before its develop- the Civil War great new supplies of iron ore were discovered around Lake Superior. The introduction of the Bessemer process and the blast furnace made the United States an international factor in the production of steel. Industrial adjustment is illustrated by the movement of the steel industry from eastern to western Pennsylvania, where it is located between the coal beds of Pennsylvania and the new sources of iron ore on the shores of the Great Lakes. Before the close of the last century the United States had surpassed Great Britain as a producer of pig iron as well as of iron ore. The chief sources of iron ore are the deposits around Lake Superior in the states of Michigan, iron and Wisconsin, and Minnesota. Other new sources copper. have been found in Alabama, Virginia, and New York. Copper is the mineral next in importance to iron, and is similarly found in the vicinity of Lake Supe- rior. Copper is not only produced in Michigan, but also in Montana, Arizona, and Colorado. The United States produces as much copper as all the rest of the world combined. The lure of the precious metals was an important factor in the exploration and colonization of both North and South America. The production of gold in the precious United States was insignificant until its dis- metals. . . co very in California in 1849. Its production later fell off until new sources were discovered in Colorado. The production of silver was not significant until after the Civil War. In the 'eighties and 'nineties it was so important that a political issue was made for the increased coinage of Possibilities of Our Economic Environment 201 silver. Important silver mines are located in Nevada, Montana, Utah, and Colorado. Although the precious metals are found in the West, the important coal deposits are located in the East. Almost our entire supply of anthracite comes Fuels: from Pennsylvania. Although the same state CoaL leads in the production of bituminous coal, other great bituminous areas are found in West Virginia, Illinois, and Ohio. The United States is the leading coal-producing nation of the world. Natural gas is another important fuel in the section around western Pennsylvania. Although the supply is precarious, a temporary abundance of this fuel has caused it to be wasted. Its industrial use is only local. Petroleum was first discovered in western Pennsylvania. At first the supply seemed localized in Pennsylvania, Ohio, and West Virginia. Later oil was dis- . Petroleum. covered in Texas, and recent successful borings have been made in Oklahoma. The number of products derived from crude petroleum makes it of great commercial value, and a world wide search has been undertaken for new sources. There are important oil-producing areas abroad in Russia and western Asia, where this economic factor has become an important element in international politics. Water Resources. — The United States possesses an excellent system of inland waterways. On the North, lie the Great Lakes which provide eighteen hundred . miles of navigable water. The Mississippi Mississippi b ^*\ System. River, running through the heart of the conti- nent and touching twenty-two states, is navigable for more than a thousand miles. Although the area served 202 Problems of American Democracy Oil Wells in Texas by this river and its tributaries furnishes the bulk of our agricultural exports and a large proportion of our manu- factured products, the river is but little used for transpor- tation. The Mississippi River serves as an excellent illustration of the possibilities and problems of internal waterways. To realize its full possibilities a number of improvements must be made. One of the worst features of this stream is its meandering tendency. Mark Twain has humorously described these windings of the lower Mississippi from his old "side-wheeler." This drawback has another unfortunate effect besides increasing the dis- tance in traveling. A slight curve tends to become intensified by the force of the current which cuts away the outside bank. The channel is therefore constantly under- cutting the bank upon which the docks are located. This can only be prevented by straightening the stream. Another problem is that of seasonal floods, which are in part caused by the deforestation of the territory around the head waters of the Mississippi. The levees along the Possibilities of Our Economic Environment 203 Oil Wells in Texas southern banks would be made less necessary by the building of storage dams along the northern part of the stream. The Mississippi River is partly paralleled by a series of inland waterways in the East. At present this system is useful for small craft only, but it may develop other future possibilities. The heads of the Delaware waterwa y s - and Chesapeake Bays, for example, are united by the Delaware and Chesapeake Canal. The Delaware and Raritan Canal in turn connects the upper part of the Delaware River with a tributary into New York harbor. From here it is possible to go to New England by way of Long Island Sound, or up the Hudson River to Lake George and Lake Champlain. Proper dredging and deep- ening of the waterways would make it possible to go by water from New England to the South without going out- side into the Atlantic Ocean. The Erie Canal across New York State, which connects Lake Erie with the Hudson River, was a great achievement for its day and laid the 204 Problems of American Democracy foundation for the later commercial greatness of New York City. There is no complete transcontinental waterway from East to West. The Panama Canal, however, serves as a medium of water transportation between the East and the West. A system of inland waterways composed of rivers, lakes, and connecting canals is still necessary in spite of the recent development of railroads. Such a sys- tem can carry at a lower cost the cheap, bulky, and non- perishable articles of freight. The relative cost of snip- ing by rail and by water may be seen by a comparison of the rates charged for shipping iron ore in the Great Lakes region. The ore is carried for about a thousand miles by boat from Duluth to a spot on Lake Erie. Here it is car- ried by rail to Pittsburgh, a distance of but a hundred and thirty-five miles. The latter part of the transportation, however, costs about as much as the former. Water-power was a natural resource which the colonists found in great abundance. Especially in New England Water were there numerous swiftly-flowing streams, power: along which our early manufacturing developed. To-day there are scattered about the country ruins of old colonial mills, which possessed a revolving water wheel and a mill race. The invention of the steam engine and the utilization of coal completely changed the character of American industry during the last century. The future scarcity of coal promises a return, however, to water-power. Hydro-electric stations may supplant the steam-driven generators. Instead of the old water wheel, electric turbines are installed in the stream. Whereas formerly the water-power was used locally, it can now be transmitted for hundreds of miles in the form of electricity. Possibilities of Our Economic Environment 205 The best illustration of the utilization of water as a source of power is seen at Niagara Falls. The power gen- erated by the two stations located here is used, not only in the neighboring industrial plants, but also in the city of Buffalo. Here it lights the streets, runs the trolleys, and supplies power for various indus- trial purposes. The Pacific Coast also offers numerous excellent water-power sites. In fact, some economic writers predict the western movement of industry when the ultimate change from steam to hydro-electric power has been effected. However, the Atlantic Coast itself possesses numerous good sites for the utilization of its abundant water-power. Regulating the flow of the Mis- sissippi River by the construction of dams and reservoirs will not only prevent floods and facilitate transportation, but it will also provide a source of water-power. Hydro-electric sites cannot be destroyed in the same way that our forests have been, but they can be monopolized by individuals and corporations. The new public „ , . Conclusion. conscience must therefore see that these impor- tant natural resources are safeguarded for future genera- tions. In order to protect the nation from such private monopoly, Congress enacted in 1920 a water-power bill which permits the leasing of water-power sites by the national government. When the lease expires, the govern- ment can take over at an appraised valuation such hydro- electric plants as have been constructed. A commission, consisting of the secretaries of war, agriculture, and the interior, also has the power to grant a lease to a private company. The important point is that the property rights remain with the government, which can specify the royalty to be charged for the use of the water-power site. 206 Problems of A merican Democracy QUESTIONS FOR DISCUSSION i . Name and give the important characteristics of the four great geographical divisions of the United States. 2. Compare the physiography of the Atlantic and Pacific Coasts. 3. What are some of the future economic possibilities of the Rocky Mountain Plateau? 4. Explain the economic importance of each of our territorial possessions. 5. What are the three great staples in American agriculture? Where is each produced? 6. What are the chief timber areas in the United States and the chief woods produced in each? 7. What minerals are most vital to industry? Tell why in each case. 8. Show how the United States is favored in each of the above minerals. 9. How have gold and silver affected our national development? 10. Why is petroleum such an important product to-day? 1 1 . Trace some of the important water routes of the United States. 12. Show some of the problems of the Mississippi River and what has been done to overcome them. 13. Discuss the relative cost of rail and water transportation. 14. Show how the power of Niagara Falls has been used industrially. 15. Compare the East and the West with respect to water-power sites. 16. Compare the methods of obtaining power used in the old water mills with those employed in modern hydro-electric plants. 17. What has Congress done to protect our water-power sites? TOPICS FOR SPECIAL REPORT 1. The precious metals and the exploration of the United States. 2. King Cotton in American history. 3. The natural resources of China and the United States. 4. The inland waterways of the East. 5. The effects of the Panama Canal upon American commerce. 6. The age of steel. 7. The future supply of coal. Possibilities of Our Economic Environment 207 8. The history of the Standard Oil Company. 9. New sources of petroleum and world politics. 10. The new importance of water. 11. American agriculture and the World War. 12. The free passage of coast-wise ships through the Panama Canal. REFERENCES Bulletins. United States Department of Agriculture. Harwood, W. S. The New Earth. Johnson, E. R„ Ocean and Inland Water Transportation. Kelsey, C. The Physical Basis of Society. Quick, H. The Good Ship Earth. Shaler, N. S. Man and Nature in America. Smith, J. R. Commerce and Industry. United States Census Reports. Water Power. Warren, G. F. Elements of Agriculture. CHAPTER XVII Conservation of Our Natural Resources I. The development of economic ideals i. Prosperity 2. Conservation and efficiency: a. Meaning b. The former waste c. The new movement II. Conservation of forests i. Its importance 2. Destruction of forests 3. The effects 4. The remedies III. Conservation of minerals 1. Coal and iron 2. Petroleum IV. Reclamation of land 1. Principle of diminishing returns 2. Opposing forces 3. The progress made 4. Restoration of soil fertility 5. Irrigation 6. Drainage The Development of Economic Ideals. — Prosperity to an individual means an abundance of personal wealth. Pros- Prosperity to a nation, in a similar sense, means perity. an abundance of national wealth. Although national prosperity depends upon the wealth of natural re- sources, physical environment is not the only factor in its 208 Conservation of Our Natural Resources 209 determination. Man's part in the production of wealth must be considered as well as the part played by nature. China and the United States are about the same size and are equally endowed with rich gifts of nature. The more progressive western nation, however, has made a much better adjustment to its economic environment. It has created more wealth and secured a greater economic sur- plus. By surplus wealth we mean the wealth created by society which is more than is needed for immediate con- sumption. Consequently, prosperity is the rule in Amer- ica, and poverty in China. Later we shall consider how this surplus is divided. Although there may be great national prosperity, many individuals may not share in this pros- perity if the wealth of the country is very unequally divided. Individuals may be happy in spite of poverty, like St. Francis of Assisi. Ordinarily, however, a certain amount of material wealth is necessary to well-being. Wealth and welfare are not identical, but the latter does depend in every-day life upon the former. National pros- perity, like individual prosperity, is not an end in itself, but merely a means to welfare. A second economic ideal is that of conservation. If prosperity means an abundance of wealth, conservation means its wise use. What thrift is to an indi- c onserva _ vidual, conservation is to a nation. Another * ion: economic ideal is that of efficiency, which may be measured by maximum results. Efficiency and con- servation are supplementary, for the one means maximum production and the other minimum waste. Our ideal of conservation implies not only consideration for one's fellow citizens, but also for posterity. A ruthless individualism of one generation may impair the prosperity, and hence o 210 Problems of American Democracy welfare, of the following generation. Our consideration of social heredity has shown us how the torch of civiliza- tion has been passed down from age to age. It is also important that each generation does not waste the riches of its economic environment. A progressive society should strive for constant improvement upon its physical and social environment, so that the world of to-morrow will be a better place in which to. live than the world of to-day. This is the romance of history. The great natural resources of America at first seemed inexhaustible. To the early settlers, the New World was The former an El Dorado. This golden dream seemed ful- filled in the mineral and agricultural wealth of the new lands. Trappers slew vast numbers of wild animals for their skins only and discarded their valuable remains. It is said that the Indians frequently used only the tongue of the buffalo. Although a century ago the western plains resounded to the thunder of great herds of bison, that animal is now practically extinct. America was similarly rich in wild geese and other fowl, which have since been largely exterminated. A similar slaughter of the trees took place. The growing population was also indifferent to the careless methods of farming which exhausted the soil. More land could be had almost for the asking. Finally the West was settled and there was little remain- ing free land. Rising prices indicated that there might The new later be a pressure of population upon food sup- movement. ^y % Certain commodities were becoming scarce and expensive. Others were being imported from foreign countries. Gradually there dawned upon the mind of the American people a new national ideal, — that of conserva- Conservation of Our Natural Resources 211 tion. President Roosevelt and Gifford Pinchot were the leaders of this movement. They sounded a call to arms against the wanton waste of our natural resources and their exploitation for private gain. A campaign of popular education was begun concerning the future production of such essentials as coal and timber. It was pointed out that new giants of production known as trusts were lurk- ing in the background, awaiting an opportunity to exploit the water-power sites of the nation. Conservation of Forests. — The conservation move- ment began with the attempts to save the forests from destruction. These are important natural i ts impor- resources not only because of their timber, but tance also because of the part they play in the conservation of soil moisture. Again, by maintaining the soil moisture, they insure a constant and regular source of water for the small streams which feed the larger rivers. Thus, forests affect the problems of wood supply, soil moisture, water- power and transportation. The ruthless cutting of our forests continued long after the pioneer days of American history had passed. In the last two decades of the nineteenth century, the Destruction increase in timber cut was almost twice as ° ores s " great as the increase in population. Our present rate of consumption of timber is almost three times as great as its estimated growth. There is a qualitative as well as a quantitative aspect to the problem of timber cutting. Instead of selecting only the mature trees, almost all the standing timber was frequently cut. This method of forest destruction is most reprehensible. Another cause of destruction is found in the frequent forest fires. The annual loss from this source alone has been estimated at 212 Problems of American Democracy fifty million dollars. Sparks from locomotives, or embers from camp fires, may start a conflagration. If a wind fans the smouldering underbrush, the entire forest may catch fire. Forest rangers can prevent the destruction from spreading, if the fire is detected early enough. Such 1 i • 1 IP 1 lr |; .ii i .j 1 l i 1 , , ■ \| 1; ,; lit I 1 1 ii^9 A--* J . 1 "^^^fc22!r ' " ■ ■• ' ,.. r * ''■•'*" X" <*.. ' *r. . ■ ■■•' fi| • *■ '4^iHftfB^^*^"^ff^^SJIItf^ .V~sy? i^ppi Js!5r--3 &M ,,- •, • "'' U *#W' I ^52 Photo by U. S. Forest Service Forest Fire Destruction in Minnesota methods as forming an open or cleared circle around the fire easily prevent it from spreading. Adequate fire- fighting apparatus may also be the means of saving both property and human lives. The most apparent result of the destruction of forests is found in its effect upon the future supply of lumber. It has been estimated that at the present alarming rate of consump- tion our timber will last but a single generation. The Conservation of Our Natural Resources 213 effects of deforestation upon the soil are even more impor- tant. Forest fires feed upon the dry leaves and branches left in the wake of deforestation. This deprives The the soil of the rich layer of vegetable matter called e ects " humus and bakes hard the surface of the earth. Instead of soaking into the ground, the rain runs off rapidly, caus- ing floods in the streams and rivers. This has the further evil effect of washing off the soil from the slopes of the hills and mountains. In some sections these washouts have become a serious problem. The roots of the trees and other vegetable matter in the soil act as a kind of sponge to hold the water after a rain and to prevent it from running off too rapidly. Where forest areas have been denuded, the soil has been deprived of its natural reservoirs. A scarcity of rainfall very quickly takes the form of drought in these affected regions. In the late summer, springs and streams dry up and both crops and cattle are threatened. Besides causing floods, droughts, and washouts, the effects of deforestation upon water-power sites are important. Hydro-electric stations require a certain volume and cur- rent of water. Irregularities of flow cause serious loss and sometimes necessitate the temporary closing of the plant. The very nature of the problem suggests many remedial measures. If conservation means wise use, it is surely folly to cut down young trees. The maximum The of timber production should be secured by cut- reme ies ' ting down mature trees only. Forests should be constantly picked over and not systematically destroyed. Again, reforestation is vital. In Germany, it is required that the cutting of trees be accompanied by replanting. Arbor day in the United States may have had as yet little material result, but it has served to educate our young people to 214 Problems of American Democracy plant trees. Another method of attacking the problem is to set aside certain forest reservations. The national gov- ernment, as well as a number of individual states, has already taken such action. Forest rangers are employed to keep constantly upon the lookout against signs of fires. On the whole it would seem that state action is inadequate and that a comprehensive national policy is imperative. Conservation of Minerals. — Forests may be replanted and the lost fertility of the soil restored by some artificial Coal and means. But minerals taken from the earth can never be restored. Coal and iron have had so important a place in shaping our recent civilization that the past century has been called the age of steel. It is often asserted that, at the present rate of consumption, the available supply of anthracite will be exhausted in the course of the century, and the bituminous coal in a hun- dred and twenty-five years. Recent reports from the United States Bureau of Mines, however, are more opti- mistic about the supply of coal. It is possible to use inferior grades which are not now mined. The policy of merely "skimming the cream" from a coal mine is to be condemned. The deeper and poorer veins have not always been worked and frequently the mine has been abandoned too soon. Such a policy has sometimes made the mine unworkable, although the scarcity of coal would have made such an operation profitable. Provision should also be made to prevent the collapse of the shafting and the flood- ing of the mine by water. River bottoms are now being dredged for the layer of coal which has been precipitated there in the process of transportation. Conflicting reports are given out concerning the supply of petroleum, and its exhaustion in the near future. New Conservation of Our Natural Resources 215 1 sources are constantly being discovered. Although con- servation is to be stressed, it must be remembered that we are living in a progressive society. Other sources of energy, such as hydro-electricity, hold great promise for the future. The utilization of the tides may not be impossible for some later generation. There is also the age-long dream of deriving energy from the sun by some focussing process which will concentrate its rays for the production of heat. Reclamation of Land. — The principle of diminishing returns lies at the basis of the Malthusian law of popula- tion. The pressure of population upon food . supply has been explained as the tendency of diminishing population to increase faster than the available supply of food. We are now ready to see whether there is really a law which determines the yield from land, that is, from natural resources. Although the law of diminish- ing returns was discovered in agriculture, it has been applied elsewhere as, for illustration, to the working of a mine. This principle states that, after a certain point has been reached in the cultivation of a piece of land, it will yield a smaller and smaller increased product in propor- tion to the increase in capital and labor expended. As population increases land is worked more intensively, that is, a greater amount of capital and labor is expended upon the same land. In Europe the land is cultivated more intensively than in America, where a relatively greater amount of land makes a more extensive cultivation profit- able. With the growth of population in America, however, the land has been worked more intensively than formerly. When the increased yield from the land is no longer pro- portionate to the increased expenditure of capital and 216 Problems of American Democracy labor, the point of diminishing returns has been reached. Suppose that a farmer, for example, applies three times as much labor and capital on a given field as last year, but receives only twice the crop yield. Although there is an increase in yield, it is not proportionate. Therefore, we say the land has reached the point of diminishing returns It has been said that nature's part in production obeys the law of diminishing returns, but that man's part is Opposing capable of increasing returns. In other words orces - a progressive society is constantly making better adjustments. New inventions and discoveries may more than counterbalance the decreasing tendency in produc- tion from land. American ingenuity has been constantly offsetting this tendency, whereas in China there has been no such strong progressive force. Here many die of starva- tion because ancestral methods of farming and transporta- tion are still in vogue. America, on the other hand, gave to the world the invention of the combined harvester and reaper. Greater returns as well as decreased effort are secured by such devices as the steam plow and the gasoline tractor. Seed is sown by a drill, which not only covers the seed but spreads the fertilizer. It must be remembered, however, that our own European ancestors were at first skeptical of the steel plow. It was supposed to poison the land instead of opposing its tendency toward diminish- ing returns. To-day the farmer has ceased to be an untrained worker. Agricultural science has been developed in school and The college. The national and state governments progress have established laboratories and maintained made. bureaus of information, which have stimulated agricultural progress. Plant diseases such as blight and Conservation of Our Natural Resources 217 scale have been scientifically investigated for the benefit of the farmer. New and better varieties of plant and animal life have also been developed by a careful process of breeding and seed selection. Natural selection is an unconscious process which has evolved the strongest and best adapted species for survival in the struggle for exist- ence. Man, however, has domesticated certain plants and animals, that is, he has largely removed them from this struggle for existence. He has then practiced artificial selection among them. For illustration, he has selected for breeding purposes those cows which give the best milk. Through artificial selection he has also produced the fat domestic pig from the scrawny "razor back," which had a much better chance of survival under natural conditions. By a similar process in the plant world the tomato has been developed from a weed. Burbank, the "plant wizard," has thus produced new and better varieties of fruits and vegetables. In a progressive society man is constantly fighting the tendency of land to yield diminishing returns. A specific illustration is his attempt to restore fertility _, r J Restoration to soil exhausted by the one-crop system. The of soil .... . fertility. one-crop system lessens soil fertility because it continually drains the same necessary elements from the soil. Again, it is favorable to the development of enemy insects and bacteria. It can be avoided, however, by the rotation of crops. The planting of cover crops is another cheap and effective method of restoring soil fertility. The cover crop is planted in the fall after harvest. Later it is plowed under and serves as a fertilizer. The legumes, like peas, beans, alfalfa, and clover have additional value, for their roots possess nodules containing ammonia. These 2l8 Problems of American Democracy are the product of bacteria which have the power of extracting nitrogen from the air. Other necessary chem- ical elements in the soil are potassium and phosphorus. Chemical fertilizers, such as bone products, are rich in these elements. Ordinary stable manure is another effec- tive fertilizer. Unfortunately, it is frequently stored in barns without cement floors and consequently loses its valuable ammonia. Humus, which is largely made up of decayed vegetable matter, is a very effective aid to soil conservation. Water is another vital element in increasing production. Irrigation is the process by which this substance is sup- plied to arid lands. Before the white man came to the great arid Southwest the Pueblo Indians practiced irrigation. The ancient Egyptians and Chal- deans, like the Incas of Peru, also understood this principle. The first great work of irrigation in the United States was Irrigation. Courtesy of U. S. Reclamation Service The Desert before Irrigation Conservation of Our Natural Resources 219 Ewing Galloway Irrigated Farm Land in Arizona undertaken by the Mormons of Utah, who "made the desert to blossom as the rose." The Horace Greeley Irri- gation Colony was begun in 1870 and named after the editor-statesman whose advice has been summed up in the words, "Young man, go West." Since that time, when there were but twenty thousand acres of irrigated lands, the 220 Problems of American Democracy work has gone on so rapidly that to-day there are about ten million acres of such land. In 1902 the National Reclama- tion Act was passed, which provides for the construction of irrigation works under the direction of the Secretary of the Interior. The earlier Homestead Act, under which the new lands of the West were first opened for settlement, had not prevented a few individuals from getting control of large* areas. To prevent such concentration the Act of 1902 limits the holdings of any one person to one hun- dred and sixty acres. The expense of constructing irri- gation dams and canals is met by the sale of public land. The settlers, who take up the irrigated lands, are required to pay back to the government in ten installments their share of the cost of irrigation. The government has merely advanced the money and done the work of con- struction. After the works have been paid for, they are turned over to the local government for future administra- tion. Drainage is the process by which water is subtracted instead of added to the soil. The Reclamation Act of 1902 provides for this phase of the work also. Indi- Drainage. . vidual states had drained a total of eight million acres of land, but the national government had done little prior to this time. There are .sixty million acres of swamp land in the United States. This is frequently a very rich soil, formed by decayed vegetable matter and silt carried down by rivers. The Florida Everglades and the Great Dismal Swamp of Virginia are good illustrations of such lands. The soil is of the richest and covered only in patches by water which is seldom deep. The drainage of most of this territory would not be nearly so difficult an engi- neering feat as the construction of the Panama Canal. Conservation of Our Natural Resources 221 QUESTIONS FOR DISCUSSION 1. Name and explain the implications of several economic ideals. 2. Explain the relationship between wealth and welfare. 3. Upon what factors does national prosperity depend? 4. Show the relationship between the ideals of efficiency' and conservation; between conservation and social welfare. 5. Illustrate the former waste of our natural resources. 6. What were some causes of the movement for conservation? 7. Who were some of its leaders and what did they do? 8. Explain the causes -and effects of deforestation. 9. What remedial steps have been taken? 10. What measures can you suggest for the conservation of our minerals? 11. Explain and illustrate the principle of diminishing returns. 12. Explain and illustrate the opposing forces. 13. What have been some important factors in recent agricultural progress? 14. Compare natural selection with artificial selection and show how man has utilized the latter. 15. What are the essential elements in the soil? How can each of these be restored? 16. Discuss the Reclamation Act of 1902. 17. Prove the value of irrigation. 18. Explain some irrigation work with which you are familiar. 19. What has been done in the way of draining swamp land? TOPICS FOR SPECIAL REPORT 1 . Rise of the conservation movement in the United States. 2. Forests as a national asset. 3. Forest reservations and their care. 4. New sources of physical energy. 5. New species of plants and animals. 6. Early irrigation projects. 7. The drainage of the Everglades. 222 Problems of American Democracy REFERENCES Annals of the American Academy of Political and Social Science, Conservation of natural resources. Harwood, W. S. The New Earth. Kelsey, C. The Physical Basis of Society. Proceedings of the Conference of Governors in 1908. Quick, H. The Good Ship Earth. Reports of National Conservation Commission. United States Census Reports on Irrigation. Van Hise, C. R. Conservation of Natural Resources in the United States. Warren, G. F. Elements of Agriculture. ' CHAPTER XVIII The Industrial Revolution I. Industrial society i . Factors in production 2. Characteristics of industry: a. Interdependence b. Inventions c. Social classes 3. Stages of development 4. Importance of the Industrial Revolution : a. A comparison b. Old methods ^ II. Industry before the age of machinery 1 . The manorial system 2. The guilds 3. Later changes III. The Industrial Revolution 1. The invention of machinery 2. The factory system: a. General features b. The consequences 3. Early American manufacturing 4. Later development Just as American political development cannot be under- stood without some knowledge of its European back- ground, so the economic development of our rich natural resources was conditioned upon England's earlier industrial progress. A brief survey of the State as a social institu- tion was necessary before our study of the American State 223 224 Problems of American Democracy in particular. A similar sketch of the evolution of indus- trial society is necessary before we undertake a study of the present problems of industry in our American democracy. Industrial Society. — Just as protection is the object of a politically organized society, so production is the end Factors in of economic society. The two primary factors production. j Q p ro( juction are i an( j an d labor. Land, in its economic sense, means limited natural resources and includes such things as mineral wealth and water resources. It represents nature's part in the production of wealth. Man's part is represented by labor, which broadly speaking is the wage-earning population. The production of wealth, however, is at present rarely achieved by the combination of these two primary factors only. Very early in the development of industry a secondary factor known as capital, came into existence. Capital may be denned as the product of past labor used for further pro- duction. Material wealth may be divided into two kinds of goods. In the first place, there are those kinds of goods, like food and clothing, which serve man's immediate wants; in the second place, there are such articles as plows and engines, which further directly the production of more wealth. Tools and machinery belong to this class, and such goods are known as capital. The development of industrial society has been char- acterized by an increasing amount of capital. When primitive man used several days' labor to fashion istics: a crude sort of spade, instead of satisfying his dfpmdence. nun g er directly by digging for clams with his naked hands, he was creating capital. Seed, which was saved for some future planting and not eaten, The Industrial Revolution 225 also became capital. Indeed, capital has been termed the seed of industry. The development of industrial society is marked by another characteristic which is closely related to the first one. Social organization and cooperation accompany the division of labor made necessary by the development of capital. This is absent among primitive groups, where each family is a complete economic unit. The Industrial Revolution carried division of labor to a degree never before known. Thus, in more advanced countries there is a complete specialization of effort; one man farms, another makes shoes, and still another exchanges goods produced in the community. In addition to the growth of social organization there goes on a process of invention and discovery within the group, whereby man has been enabled to util- r . . . . . Inventions. ize more fully his economic environment. Dis- coveries and inventions, such as the rotation of crops, the expansive power of steam, and the modern mechanical inventions have multiplied enormously the productivity of nature. This has been called man's conquest of nature and is part of the process of the evolution of industrial society. The twin forces of invention and of social organi- zation have created a social surplus, that is, a surplus of goods above what is needed for present consumption. Each new invention or change in organization means a problem of social adjustment, and the transition period may be one of hardship. Another characteristic of industry may be found in the formation of social classes, whose existence is due to the development of industrial society, as well as to social the growth of the State, the effect of war, and classes - numerous other forces. The earliest division of labor and 226 Problems of American Democracy of social classes was based on sex. In savage societies the women worked while the men hunted. Later, society was divided into a slave and a leisure class. We have seen how the conquering group exploited the labor of the conquered by the institution of slavery. Upon it developed many ancient cultures and civilizations. Modern industrial society involves social distinctions based upon labor and capital. These groups, however, should not be antago- nistic, but complementary and interdependent. Social evolution divides the development of industrial society into four stages: (i) hunting and fishing; (2) pas- sta es of toral; (3) agricultural, and (4) industrial. There develop- i s no clearly cut line of demarcation between ment. these stages. Like other periods of history, one gradually fades into the other. Often we may see both existing side by side. Again, some groups advance more rapidly than others and arrive earlier at an advanced stage. With the passage from the hunting and fishing periods to the pastoral, and then to the agricultural stage, there are developed the early handicrafts like weaving and pottery making. When the fourth stage is reached, the society has usually attained a high degree of civilization. The Industrial Revolution took place after European civilization had long been in the last stage of economic impor- development. It occurred during the last half * a *l ce °* of the eighteenth and the first part of the nine- Revolution: teenth centuries. The French Revolution, A comparison. i • i ■ 1 1 i , ., .. ? which took place about the same time, was tar more spectacular and produced great social and political changes. The gradual, progressive, economic changes in the method of production, which is merely another way of defining the Industrial Revolution, were not heralded The Industrial Revolution 227 so loudly as the guillotining of a few aristocrats. Never- theless, they were perhaps of far greater moment to the world. The Industrial Revolution made it possible for Europe to double her population within the next century. Great cities arose as if by magic. There had been some improvement in the method of agriculture after the close of the Middle Ages, but labor-saving machinery was a distinct development of the nineteenth century. Old-Fashioned Spinning Wheel Before the Industrial Revolution manufacturing was still done by hand, as the etymology of the word indicates. The distaff had been supplanted by the spinning wheel. 228 Problems of American Democracy Weaving was done by a cumbersome hand loom. Home- spun cloth was worn by the patriots of the Revolution. The old Methods of illumination, as well as of transpor- tation, had made little progress. Animal fats were used for making candles and oils required in lamps. Mod- ern means of communication, like the telegraph and tele- phone, were undreamed of. Men journeyed on land like Hand Printing Press the ancients, on foot or by horseback. On sea the small sailing vessel had not been replaced by the huge steamer. The means of travel used by Napoleon's troops were hardly superior to those of the legionaries of Caesar. Indeed many of the old Roman roads offered a means of trans- portation superior to those of that day. In order to appre- ciate fully the gains of the Industrial Revolution let us see, The Industrial Revolution 229 therefore, what economic conditions were like before the great mechanical inventions took place in the eighteenth and nineteenth centuries. Industry Before the Age of Machinery. — During the. Middle Ages, when agriculture was the prevailing occupa- tion, population was widely scattered through- The out the country districts of Europe. The insti- manorial . . . system. tution of feudalism, determining the economic as well as the military organization of society, made the manor the unit of agricultural production. The serfs who tilled the soil lived in small villages close to the protecting walls of the neighboring castle or manor house. Their wretched huts, with thatched roof and crude interior, often shel- tered both man and beast. On all sides lay the lord's estate composed of woodland for hunting, meadow land for grazing, and the lands for actual farming. Some of these farm lands the lord kept for himself, but the remainder was divided into strips for the serfs, who worked not only their own lands but also their lord's. The serf also paid the lord a rent in the form of a share of the produce derived from the land which he tilled for his own support. Not only were methods of agriculture crude, but one-third of the land lay fallow every year. The manor, shut off from the outside world and supported by its own activities, had little intercourse with the rest of Christendom. The medieval towns were the birthplaces of commerce and manufacturing, which were carried on by an organiza- tion of trade and craft guilds. A trade guild _ & . ° The guilds. included the merchants of that particular town, and a craft guild, the makers of a special commodity. Not only was a fraternal spirit maintained in each group, but a practical monopoly was secured by the members, who 230 Problems of American Democracy excluded outsiders from participation in the production of that particular commodity and also placed restrictions upon their own activities. The quantity and quality of the goods produced were carefully regulated. Medieval pro- duction was, of course, carried on by hand and under the careful eye of the master. A boy worked as an apprentice while he learned the trade. After the period of appren- ticeship had expired, he became a journeyman and could then work for wages. Upon the accumulation of a little capital, he might set up a shop for himself and become a master workman. Medieval trade and commerce were carried on at certain markets and by great annual fairs. The Crusades helped to break down feudalism by stimu- lating commerce, while the Black Death hastened the Later gradual decay of serfdom. When the manorial c anges. system began to decline, a class of farm laborers appeared to take the place of the medieval serf. With the decline of guilds, great trading companies came into exist- ence, like the London and East India Companies, which planned to carry on commerce with the new lands that had been discovered. The craft guilds were replaced by the domestic system of manufacturing, whereby artisans could now set up hand machinery in their own homes and there carry on production free from the protection of the guild. The necessity for some sort of protection in industry, together with the decline of feudalism, led finally to the development of strong national governments. The Industrial Revolution. — The textile industries _. . were the first to be revolutionized by the use of The inven- J tion of machinery. Under the domestic system weaving machinery. was done upon the hand loom by the father of the house, assisted perhaps by a journeyman, while the The Industrial Revolution 231 women did the spinning on the primitive spinning wheel. But, during the second half of the eighteenth century, a great series of mechanical inventions took place, which completely altered these simple processes. Hargreaves invented a "spinning jenny" which could spin several threads at once out of the raw material, while Cartwright's power loom superseded the slower method of weaving by hand. Another Englishman, named Watt, gave to the world the steam engine. Eli Whitney's cotton gin increased the supply of raw cotton for the manufacture of cloth. These were the first of a series of great mechanical inven- tions which have continued down to our own day. The movement began in England in the manufacture of tex- tiles, but has spread to other lands and other industries. The locomotive and the steamboat have revolutionized means of transportation as much as the earlier inventions revolutionized methods of manufacturing. The last cen- tury has been called the age of steam and machinery. The new machinery, with its great demands for capital, was responsible for the change to the factory system of manufacturing. The cumbersome mechanical The inventions were too large and costly for the cot- factor y m ° J system: tage weavers and spinners to set up in their General homes. Large factories were therefore built to house the new machinery, and production went from the home into large specialized industrial plants. Since this method required great sums of money, a new capitalistic class, who owned the instruments of production, sprang into existence. The laborers, who had formerly owned their own tools, now became a group of machine operators who no longer worked for themselves. Population shifted to the regions where coal and iron were to be found and 232 Problems of American Democracy great industrial towns grew up. Many of the estates, which had formerly been regarded as common pasture land, were inclosed for the benefit of the local landlord, who raised sheep in order to procure a supply of raw wool for the manufacture of cloth. This change worked hardship to the rural workers of Eng- land, many of whom came to the town to seek employment in the factories. Again, the new machinery drove many Theconse- of the hand weavers out of employment. In quences. alleys and cellars some kept up a futile competi- tion for a lower wage, while others retaliated by burning and destroying the new machinery. A period of adjust- ment was necessary before labor could adapt itself to the new industrial environment. During this period of tran- sition there was considerable disorder and distress. In America, there was comparatively little manufacturing before the Industrial Revolution and such problems of adjustment were not difficult at that time. But in the long run, machinery, like any other improvement, was of great benefit to society. It not only multiplied the output, but made possible the lowering of prices to such a level that the new goods could come within the reach of all. The Indus- trial Revolution, however, divided society into the opposing camps of capital and labor, whose apparently conflicting interests have created many modern problems. The early social effects of the factory system were disastrous because the first factories were unhealthy and housing conditions were equally unsanitary. The problems of women in industry and of child labor likewise sprang into existence. The Industrial Revolution was largely responsible for England's proud position of industrial and commercial leadership, which continued undisputed until the economic The Industrial Revolution 233 expansion of Germany and the United States. Looking overseas at their great colonial empire, Englishmen might well be proud of their country; but, glancing inwardly at industrial conditions, the picture was not so inspiring. Colonies were at first regarded as important for maintain- ing industrial supremacy. They were viewed as sources of raw materials and as markets for finished goods. The Rev- olutionary War represented the opposition of Americans to the theory that colonies existed for the benefit of the mother country. It was forbidden to export machinery to the colonies, and America was prohibited from manufacturing certain things which were pro- American duced in England. The Navigation Act dealt £J££ ac " a severe blow to New England, where ship build- ing and commerce were flourishing. The Revolutionary War, on the other hand, stimulated national industry, for it forced the colonies to do their own manufacturing. When the war was over, the new American industries were threatened by a flood of European goods. Alexander Hamilton, Secretary of the Treasury, made a strong plea for protection in his Report on Manufactures, submitted to Congress in 1792. The War of 1812 has been called a second war for independence. This is true in an economic, as well as in a political, sense. Like many nations of Europe, America had been dependent upon England for her manufactured products. The Napoleonic Wars were a temporary check to the commerce of England, and America was forced more and more to depend upon herself. The manufacture of textiles took firm root, for this was the period of rapid growth of our infant industries. While the South clung to agriculture, the industrialization of the North went on steadily. 234 Problems of American Democracy The need for increased revenue during the Civil War pro- duced high protective tariffs which resulted in increased home manufactures. From 1859 to 1869 the capital invest- _ ed and the number of workers employed in develop- manufacturing doubled. This rapid rate of ment. . ° f increase has been maintained ever since the war. The value of our manufactures has advanced even more rapidly than the increase in our population. Along with this increased valuation, a corresponding change in the character and volume of our exports took place. Food- stuffs took a relatively lower, and manufactured articles a relatively higher, place in the list of exports. The more recent industrialization of America has placed this nation in competition with Great Britain and Germany in the markets of the World. It has created such economic prob- lems as the tariff and large scale production. Social maladjustments, such as child labor, urban congestion, and unhealthy working conditions followed the Industrial Revolution in America as in England. QUESTIONS FOR DISCUSSION 1. Define the factors in production. 2. Describe the characteristics of industrial society. 3. What are the four stages of development of industry? 4. Why is capital important? 5. What has largely created the surplus wealth of modern society? 6. How did modern social classes arise? 7. State the advantages of an industrial society over an agri- cultural community. 8. Why does an industrial society combine at the same time so many benefits and evils? 9. Enumerate both benefits and evils. 10. Describe the organization of a feudal manor. 11. What two kinds of guilds were there? The Industrial Revolution 235 12. Describe the regulations and advantages of the guilds. 13. What factors influenced commerce during the Middle Ages? 14. What was the original meaning of the word "manufacture"? 15. What economic changes took place at the close of the Middle Ages and at the beginning of the modern era? 16. Describe some old-fashioned ways of doing things. 17. Name some of the great mechanical inventions that intro- duced the Industrial Revolution. 18. Contrast the domestic and the factory system of industry. 19. Explain the effects of the factory system. 20. Sketch the history of early American industry. 21. How do you account for its later development? TOPICS FOR SPECIAL REPORT 1. Woman's share in primitive industry. 2. The medieval guilds. 3. The domestic system of manufacturing (e. g., Silas Marner in George Eliot's novel). 4. The great mechanical inventions of the Industrial Revolution. 5. The economic effects of the Industrial Revolution. 6. The age of capitalism. 7. The Industrial Revolution in America. 8. The rise of American industry after the Civil War. 9. The economic rivalry of England and Germany. 10. Society as a social organism. REFERENCES Ashley, W. J. English Economic History. Cheyney, E. P. Industrial and Social History of England. Co-man, K. Industrial History of the United States. Munro, D. C. A History of the Middle Ages. Toynbee, A. The Industrial Revolution. Wright, C. D. Industrial Evolution of the United States. CHAPTER XIX Modern Capitalistic Production I. Division of labor i. Nature: a. In life b. In industry 2. Kinds 3. Importance 4. Value in exchange: a. Origin b. Meaning 5. Effects on labor 6. Some disadvantages 7. The gains II. Large scale production 1. Illustrations 2. Advantages: a. Use of by-products b. Other economies 3. Limitations 4. Scientific management: a. Advantages b. The danger The Industrial Revolution was signalized by great changes in methods of economic production. The inven- tion of machinery made division of labor more complex, while the tremendous amount of capital required stimulated large scale production and the growth of the modern corporation. 236 Modem Capitalistic Production 237 Division of Labor. — The meaning and importance of division of labor is fundamental, if one is to understand the industrial organization of modern society. Com- Nature : petition and cooperation are twin forces in the In u ^ e - economic, as well as in the biologic, world. As one ascends the scale of life from the lower to the higher forms, one observes an increasing amount of cooperation as well as an increasing complexity of structure. Special nervous, digestive, and respiratory systems develop and make possible a biological or organic division of labor. The organism of society has undergone a similar evolution from the simple to the complex, accompanied by an increasing amount of cooperation and specialization. The occupations of primitive man were so simple that there was little need for division of labor. There was no complex problem of exchange, and each indi- vidual confined himself to procuring food for himself and his little group. In a similar manner, the American pioneer was his own "butcher, baker, and candle- stick maker." We have seen the simple economy of medie- val Europe and how each manor was almost self-sufficient. The earliest commerce was between the towns and the surrounding country. However, there had already been growing up a simple division of labor based upon occupa- tions. This can be seen in the origin of last names, which were gradually added to the given names. Thus, John the smith became John Smith and William the miller, William Miller. Division of labor into simple crafts and occupations is as old as the age of handicraft manufactures. The Industrial Revolution developed this simple division of labor into more intricate forms because the 2 3 8 Problems of American Democracy invention of machinery subdivided the work of manufac- turing into minute tasks. The earlier division of labor provided for shoemakers, who had learned the trade by apprenticeship, and who could make by hand a finished Cutting Leather in a Shoe Factory, Lynn product. To-day, the making of shoes is done by machinery. Each individual worker performs but one simple task, as, for illustration, stitching on the sole and fastening on the heel. Thus, a single pair of shoes goes through a Modem Capitalistic Production 239 number of different hands. In addition to this division of labor between individuals there is a division of labor between countries, which is known as geographical division of labor. The Crusades stimulated a demand upon the part of Europeans for the spices and silks of the East. Com- merce sprang up in which the products of one land were exchanged for those of another. A country, like an indi- vidual, tends to produce those things for which it is best fitted by nature. Division of labor has made individuals and countries economically specialized. The World War has shown man- kind how interdependent are its various parts. i mpor - Nations starve and pestilences rage when the tance - healing stream of commerce is checked, because afflicted people are unable to get essential food and drugs. A con- sideration of the various articles upon the lunch table will show how many corners of the globe are represented. The coffee or chocolate has come from the plantations of South America and the tea from the Orient. At the same time the factory system has taken production out of the home and placed each task in the hands of specialists. The bread and butter were therefore probably bought from some local dealer and not made at home in the old-fashioned way. The canned fruit came from the corner-grocer, who purchased it from the wholesaler, who, in turn, bought it from the cannery. A still different group of workers picked the fruit while others were engaged in the work of trans- portation. A number of questions suggest themselves in connection with this principle of division of labor and the interchange of commodities which it necessitates. Can such an intricate system work smoothly and always adjust itself quickly to 240 Problems of American Democracy new conditions? Cannot one group of workers, by refus- ing to cooperate, impede for the time being the whole Valu - n industrial system? Again, how is the relative im- exchange: portance of each factor in the wealth-creating process determined? Division of labor necessi- tates the exchange of products between men and nations. This process of exchange brings up the problem of value. If the shoemaker wishes to exchange some of his shoes for the clothes of the tailor, upon what basis shall it be done? A suit of clothes is worth how many pairs of shoes? The direct system of exchanging goods for goods is called barter and is practiced only in primitive communities. Civilized nations solve the problem by using money as a standard of value and as a medium of exchange. For this purpose gold has been used for many centuries. It was formerly weighed out like any other commodity, but is now minted into coins of a standard weight and purity. Thus we say, for example, that the suit of the tailor is worth forty gold dollars and shoes but ten gold dollars. The suit is then worth four times as much as the shoes, and forty times as much as the gold in a single dollar. Value is "the power of a good to command other goods in exchange for itself." Price is value measured in terms of one special commodity called money. Increased division of labor should mean more goods and cheaper goods because specialization generally results in Effects greater skill. Making homespun cloth was just on labor. one Q £ ^q countless things that made up the working day of our pioneer ancestors. If one could devote the entire time to the making of clothes, however, one would become an expert tailor. Again, division of labor makes it possible to adapt the different tasks to the different types Modern Capitalistic Production 241 of human ability. It can take into account the physical and mental differences in people. When there are many different occupations, it is easier to find one which is suited to one's taste, ability, or character. Division of labor also makes possible the utilization of cheap, unskilled labor. When production was carried on by hand-tools, instead of by machinery, a period of apprenticeship was necessary in order to become a skilled craftsman. The Industrial Revolution on the other hand, created a demand for a relatively large number of machine tenders. Little skill, strength, or intelligence is required, and unfortunately child labor is often in demand. Division of labor is the cause as well as the result of the use of machinery. Such a reciprocal relationship between cause and effect is very common in social and economic problems. The use of machinery has increased the degree of division of labor, while this division of the process into smaller and simpler tasks has in turn resulted in the invention of machinery. There are certain disadvantages resulting from industrial specialization in spite of the increased output and uniform quality of the goods produced. Such critics of some dis- the Industrial Revolution as John Ruskin and advanta s es - William Morris have declared that standardization in industry tends to destroy the individuality of both the worker and his work. Minute division of labor resolves the working day into a mere continuous repetition of certain monotonous acts. There is little variety in such a task as soldering the tops on an endless line of tin-cans, fed to the worker by automatic machinery. The joy of workmanship is dulled when one performs but a small task and cannot carry the process through to its completed stage. Not only is the work monotonous, but it frequently dwarfs the intelligence. Q 242 Problems of American Democracy These disadvantages to the worker are more than offset by the greater number of comforts of modern life. The new machinery has brought its products within the reach of the worker's pocket-book. Because the great mechanical inventions make it possible to do the same amount of work in much less time, the working day has grown steadily shorter since the Industrial Revolution. A Modern Printing Press This increase in the amount of leisure time for recreation and education makes it possible for the worker to forget the uninspiring monotony of his work. At the same time public libraries, recreation centers, and modern places of amusement enable him to employ his leisure time in acquir- ing knowledge, in improving health, or seeking entertain- ment. Modern Capitalistic Production 243 Large Scale Production. — Division of labor has reached its highest development under large scale produc- tion. The Industrial Revolution, with its ni us tra- increased use of capital, drove industry from the tlons ' home into the factory. The use of expensive machinery is only profitable when articles are produced upon a very large scale. Consequently, the increased use of machinery, division of labor, and large scale production have all devel- oped side by side. The automobile, the steel, and meat- packing industries, are good illustrations of large scale pro- duction. At first, in the iron industry, the ore was unloaded from boats on the Great Lakes by ordinary hand labor; but with the development of large scale production the steel crane and automatic grab buckets were employed. Finally the electric magnet was used to swing great masses of iron ashore. Andrew Carnegie amassed a colossal fortune because he made the steel industry one of large scale pro- duction. Similarly the cheap price of the Ford automo- bile is made possible by standardization and manufacturing upon a large scale. Again, the packing houses of Chicago slaughter thousands of cattle a day. There is a regular routine followed from the swinging of the live steer upon a travelling carriage to the pasting of labels upon the cans of corned beef. Large scale production makes possible not only the increased use of machinery and division of labor, but also the utilization of by-products which were former- Advan _ ly thrown away. The packers boast that the tages: . .,.,., By-products. only part of the hog which is not utilized is the squeal. The bristles are used for brushes, the fats for making glycerine and soaps, and bone refuse is converted into fertilizer. The manufacture of coke from bituminous 244 Problems of American Democracy coal was formerly conducted with a great amount of waste. Not only is the coal gas now used, but the coal tar has become very valuable as the source of many chemical dyes. It is estimated that hundreds of articles, from tooth paste to shoe polish, are made from coal tar by-products. The utilization of by-products is the result of long experimen- tation, the expenses of which can only be met by large scale production. The Standard Oil Company, in order to effect economies, maintains laboratories to study the possibilities of the other various distillations from crude petroleum. economies. Again, large producers can effect many economies in both buying and selling. In every modern business there are certain fixed expenses which must be met, whether the returns are great or small. Thus, if the industry is one of large scale production, the expense per unit of product is reduced. Buying a large amount of raw material at one time tends to reduce the cost of production. Many large scale industries have therefore sought to control the supply of raw materials needed and, in this way, have tended to become monopolistic enterprises. There are certain limitations, however, to large scale production. It is often objected that there is not a suf- Limita- ficient supply of requisite managerial ability, tions. Great captains of industry, like Andrew Car- negie, are rare. Again, not all industries are adapted to large scale production. Agriculture, for illustration, seems to thrive best under small scale production. Moreover, any industry cannot keep on expanding indefinitely. There is a point of maximum efficiency which varies with each industry. To go beyond this may mean increased cost per unit of product. Again, there is the constant danger Modern Capitalistic Production 245 of monopoly. Size may be sought in order to crush com- petition, rather than to lower prices through the economies of large scale production. Large scale production requires not only an enormous amount of capital, but also an efficient organization. Scientific management often carries division of labor to an extreme. A personnel department manage- strives to put each employee in the position for ^f n '. " r J f Advantages. which he or she is best fitted. Often examina- tions and psychological tests are held to determine the applicant's fitness. Large concerns frequently maintain their own training schools. Efficiency experts visit indus- trial plants and large commercial houses to advise them how to increase production. Conditions are studied to determine where there is a waste of effort or material. New and more efficient methods are then introduced. It is not economical to have a highly paid employee doing work which could be done by cheaper labor. Mr. Taylor, a pioneer in scientific management, studied workmen who were laying bricks in order to find out what were wasted motions. As a result of this investigation, a standardized method of laying bricks was determined upon. After care- ful experimentation, the best sized shovel for excavation was similarly discovered. The good results of scientific management are obvious when it produces greater efficiency and decreased waste. It is objected that scientific management makes the individual a mere cog in a great machine. It is also main- tained that the methods introduced are designed to get the utmost effort out of the employee regardless of his physical well-being. Machines may be deliberately put upon a higher gear in order to "speed up 246 Problems of American Democracy the employee" to his maximum strength and speed. Increased production at the price of excessive human fatigue is poor economy. The conservation of human resources is even more vital than that of physical resources. QUESTIONS FOR DISCUSSION 1. What is division of labor? Illustrate. 2. Compare division of labor before and after the Industrial Revolution. 3 . What is geographical division of labor? Illustrate advantages. 4. How does division of labor give rise to the problem of exchange? 5. How does division of labor necessitate a problem of value? 6. What is value? What is price? 7. Explain the advantages of division of labor. 8. What are the objections? 9. What are its effects upon labor? 10. Give some illustrations of large scale production. 1 1 . What are the essential features of large scale production? 12. Explain the advantages of large scale production. 13. Show its limitations and dangers. 14. Show the relationship of capital to division of labor and large scale production. 15. Explain the purpose and method of scientific management. 16. What objections have been raised to this system? 17. What are its advantages? TOPICS FOR SPECIAL REPORT 1 . John Ruskin and the Industrial Revolution. 2. Take some article of clothing and show what extreme division of labor is involved in its production. 3. The methods and organization of some industry which illus- trates large scale production. 4. The effect of war upon geographical division of labor. 5. The possibilities of scientific management. 6. The gains of standardization. 7. Capital in modern production. Modem Capitalistic Production 247 REFERENCES Burch, H. R. American Economic Life. Chapter XXVI. Clay, H. Economics for the General Reader. Chapters II and III. Ely, R. T. Outlines of Economics. Chapter VIII. Marshall, Wright and Field. Materials for the Study of Ele- mentary Economics. Chapters V and VI. Part A. Seager, H. R. Introduction to Economics. Chapter IX. Taussig F. W. Principles of Economics. Chapters III, IV and V. CHAPTER XX Modern Capitalistic Organization I. Earlier forms of business organization i. The single enterpriser 2. The partnership II. The corporate form of business organization i. Character of the corporation 2. Economic advantages 3. The promotion of a new enterprise: a. The promoter b. The new company 4. Organization 5. Nature of securities : a. Stocks b. Bonds 6. Social dangers: a. Political corruption b. Manipulation of subsidiary companies c. Financial jugglery d. Overcapitalization e. Speculation Earlier Forms of Business Organization. — Before the development of the great corporation, industry was „,, . ., conducted almost entirely by the individual The single > J J enter- business man. To-day the single enterpriser priser. . ... continues to predominate m small scale produc- tion. Since he assumes the risk of the business, he reaps the profits or suffers the losses of the undertaking. The 248 Modern Capitalistic Organization 249 enterpriser may be a great merchant prince, or the humble boot-black who shines his shoes; but large scale production generally assumes the corporate form. The enterpriser brings together land, labor, and capital, the three funda- mental factors in production. Although he may lease some land and borrow some money, a portion of the capital must be his own. Although he must hire a sufficient num- ber of employees to run the business, the labor of managing the enterprise is his own. Upon his shoulders falls squarely the responsibility of the undertaking. Not only must the successful enterpriser possess energy and foresight, but he must be a good judge of men and conditions in order to foresee prices and the changing demands of a fickle public. Especially important qualities are organizing ability and leadership which can inspire loyalty and confidence. The battle of economic competition develops industrial generals who have frequently risen from the ranks. Conditions in America seem to have been favorable for developing the qualities of the successful enterpriser. Asia has given to the world great religious teachers, Europe men of letters and science, but America the great captains of industry. A partnership is an association of two or more indi- viduals, who are jointly responsible for their enterprise. Each partner is liable for all the obligations of The part- the firm and must abide by a contract signed by nershi P- any other partner. Recently there has been a tendency toward what are known as limited liability partnerships. Although there is a disadvantage in joint responsibility, more capital can be secured by several individuals than by any one of them singly. Again, this business arrangement may afford to each partner an opportunity to specialize in the kind of work for which he is best fitted. Partnerships 250 Problems of American Democracy are well adapted to enterprises requiring comparatively little capital and depending chiefly upon skill and talent. The profession of law, for example, affords numerous illustrations of this form of association. Another illustra- tion is retailing business, depending to a large degree upon personality. The Corporate Form of Business Organization. Large scale production requires an enormous amount of capital, to supply which the modern corpora- of the tion has come into existence. A corporation is corporation. . , . an association of a great number of individuals known as stockholders, who are financially liable only to the value of the amount of stock held individually. It is a fictitious person before the law, that is, it can sue or be sued, incur debts, make contracts, and in short do anything which an ordinary individual can do. The corporation derives its right to exist from a state charter, which when granted in one commonwealth must be recognized in all the others. In the past, because of lenient regulations, New Jersey was sought by many associations desiring to incorporate. Recently, however, this commonwealth together with most of the other states, have added con- stitutional or statute restrictions concerning the granting of franchises to new companies. Many commonwealths have passed "blue sky laws" to protect the public by restricting the activity and preventing the incorporation of financially unsound organizations. The corporation enjoys a number of advantages over the other forms of business organization. This artificial crea- Economic ture has a perpetual existence, if its life is not advantages. ]j m ited ^y ^ e j-{ me c l ause m the franchise. Stockholders may die and officers resign, but the corpora- Modern Capitalistic Organization 251 tion may go on forever. Its chief advantage lies in its ability to get together an enormous mass of capital, which makes possible large scale production. The fund for such enormous organizations as the Pennsylvania Railroad and the United States Steel Corporation must be obtained col- lectively. Corporate stock can generally be purchased in large or small amounts to fit the needs of the individual investor. The fact of limited liability gives the corpora- tion an advantage over the partnership. If the corporation fails, the individual stockholders cannot be called upon to make good its losses out of their own pockets. National bank stockholders, however, have a double liability, that is, they are responsible for twice the value of the stock which they hold. The purpose of this unusual arrange- ment is to protect the depositors in a national bank. Another advantage of the corporate form of business organization is the great flexibility of management. Reorganization is possible by the election of a new set of officers or another board of directors. Experts can also be obtained for the management of the various depart- ments by the payment of large salaries. New corporations are continually being organized as new enterprises are launched. The promoter is the man who organizes and directs combinations of The capital. He secures funds for the development motion of A c a new of our natural resources. Let us take as our enterprise: '11 , ,• ,i r .. j- .<• The promoter. illustration the formation of an oil company. The professional promoter hears that oil has been struck ill a new section of the country. He may go there only to discover that the report of the oil possibilities has been much exaggerated. On the other hand, the field may seem so promising that the promoter may decide in favor 252 Problems of American Democracy of the venture. He may have sufficient funds of his own for the early steps, or he may require the assistance of other and larger financiers. Geological experts and mining engineers are employed to give an opinion as to the best probable locations for the prospective wells. The pro- moter then buys options upon some of these sites, that is, the right to purchase the land for a certain sum at the expiration of a given time. In the meantime he has secured all the information possible concerning the new prospect. More funds are now needed, and the promoter gathers around himself a small group of financiers. If he is unable to convince them of the possibilities of the oil fields, the proposition is dropped for lack of funds. The promoter bears the burden of the initial expenses. If he is successful in convincing the bankers of the ulti- mate success of the undertaking, a new company is incor- Thenew porated by securing a charter from the state. company. T k e stoc k Q f fa e ne w company may be directly subscribed by a number of wealthy investors. More likely, however, the issue of securities is "floated" by some banking or bonding house. For a certain bonus such financial institutions will underwrite an entire issue, that is, guarantee its sale to the general investing public. The salesmen of the new securities then sell the stocks or bonds to individuals and corporations throughout the country. The promoter of a new enterprise generally receives as his reward a generous slice of the securities. The stockholders of a corporation are the ultimate source of its authority. This means frequently, however, Organi- the mere election of a board of directors, who manage the undertaking supposedly in the best interests of the stockholders. Each stockholder has as Modem Capitalistic Organization 253 many votes as he has shares of stock, and the balloting is generally done by proxy. Only too frequently the small holder does not trouble himself to mail to the company his choice of officers. As long as the dividend is paid regu- larly, he cares little about the management of the corpora- tion. The policy of the corporation is thus determined by the directors, who are often the large share holders. They decide what rate of dividend shall be paid, whether the capitalization shall be increased, and if so, whether a stock or bond issue shall be resorted to. The board of directors may elect an executive committee where the corporate responsibility is still further centralized. Other necessary committees may be elected or appointed. The administrative work is left to salaried officials who may or may not be officers of the corporation. For illustra- tion, the president of a company may also be the super- intendent of the plant, and each of the vice presidents may be in charge of a department. The organization of a corporation is strongly influenced by the kind of industry represented. In general there are three fundamental departments; namely, the producing, the selling, and the administrative departments. Each of these departments has its own subdivisions and managers. Securities, such as stocks and bonds, merely represent the economic wealth which lies behind them. They are paper certificates of the ownership of economic Nature of wealth, such as land and capital. When we say securities: that the United States Steel Corporation has a capitalization of two billion dollars, it should mean that this company has two billion dollars worth of land, build- ings, machinery, etc. Stocks and bonds can be broken up into convenient divisions more easily than the real wealth 254 Problems of American Democracy represented. If Mr. Blank owns a thousand dollars' worth of stock, it merely means that he owns that fraction of the company's real wealth. A thousand-dollar bond would make him a creditor of the company to that extent. The stockholders are members of the corporation and are often small inactive enterprisers. The dividend paid upon their stock represents their share of the fluctuating returns of the corporation. The stock itself represents the wealth invested in the corporation. A bond holder is a creditor of the company and not necessarily a member of the corporation. Consequently, he may have no voice in its internal manage- Bonds. . i • i ment. He receives interest upon his loan at definite times and at a fixed rate of interest. When the time of the loan expires, the owner receives the face value of the bond. Bond obligations must be met before a dividend is declared. If a corporation cannot pay the interest upon its debts it is insolvent. Stock may be divided into common and preferred, and the earnings of the latter group of securities may be fairly constant like the interest upon bonds. The elements of risk and profits tend to balance each other, for the investor cannot get maximum safety and maximum profit. Speculative stocks will pay high dividends because of the risk involved. The comparatively low rate of interest on municipal and gov- ernment bonds is due to their high degree of security, which makes them attractive to conservative investors. Some of the very advantages of the corporate form of business organization indicate the dangerous possibilities. Limited liability and flexibility of management result in indirect and absentee ownership. For this reason a great corporation is said to possess no soul. Real, not fictitious, Modem Capitalistic Organization 255 persons feel a sense of responsibility. In the story of Mrs. Shelley, Frankenstein proved a dangerous monster after his creation. The very size of the modern cor- poration makes it a possibility for evil as well as dangers: good. Its vast funds may be used for political F c °lf^ on corruption, whereby undue power is wielded and legislation inimical to social welfare is enacted. Internal politics may be played within the corporation, while high- salaried sinecures are not unknown. Furthermore, a few influential members may organize subsidiary companies and concentrate in them a portion of the company's profits. For illustration, a few subsidiary directors of a large automobile company may com $ ames - organize an independent company to build automobile bodies. By charging an exorbitant price for these bodies, the small subsidiary company may make large profits at the expense of the original corporation. Officers may sometimes pay themselves high salaries at the expense of dividends or to conceal the high profits. Another abuse is connected with the borrowing Financial power of the corporation. Bond issues may be Juggery - floated which are far in excess of what the earnings of the company warrant. Corporations can also be forced into bankruptcy and then reorganized. A similar object may be accomplished by giving out false reports to discourage the stockholders, who sell out cheaply and leave the pro- moter and his friends in control. After this purpose has been accomplished, the price of the securities may then rise to their proper value. The value of the stocks and bonds of a corporation should equal its real wealth. Such is not always the case. The franchise, certain privileges granted the company, and 256 Problems of American Democracy various intangible assets are sometimes capitalized, that is, given a monetary value, and stock issued to that amount. Overcapitai- Up to a certain extent this is legitimate, for many of these things have proper commer- cial value. Great evils, however, result when the privileges are capitalized at an exorbitant figure. This has been illustrated in the consolidation of street car companies. Again, stock has sometimes been issued which has had no physical basis at all. Promoters have been given large shares of stocks which have no paid-in value. Such a pro- cess is known as overcapitalization or stock watering. The more a stock is diluted the less becomes the value of each share. All the stockholders may suffer for the benefit of a few. Sometimes all the stockholders may receive a grant of stock. If this is equal in value to, and in lieu of, a cash dividend, the process is legitimate. It merely means that the corporation is saving and expanding. Often, however, stock dividends are largely water. Overcapitalization may be sought to conceal high profits. If a dividend of ten dol- lars is paid upon a share of stock valued at a hundred dollars the profit is ten per cent. If the capitalization is doubled, it now means ten dollars upon every two hundred and thus the corporation shows a profit of but five per cent. It is easier to add water to stock than to squeeze it out, for those who profited by the process of overcapitalization may have sold the stock later to legitimate investors. Numerous laws have been passed attempting to restrict this evil of overcapitalization. The ease with which corporate securities can be bought and sold in almost any denominations makes speculation possible. Stock brokers are middlemen who buy and sell securities for their customers. The stock exchange is the Modern Capitalistic Organization 257 market in which they operate. The most important stocks and bonds are listed on the New York Exchange where the business is largely concentrated . The daily papers . 1-11 r Speculation. record the closing prices obtained there for the chief securities. The more conservative investment securi- ties fluctuate but slightly. Fluctuating securities, however, afford greater possibility for gain or loss and are known a& speculative stocks. Speculators watch the stock market in order to buy stocks when they are low, hold them for a rise in value, and then sell them for a profit. Fortunes have been made and lost on the floor of the stock exchange. If the security has been actually bought, such speculation can hardly be called gambling. Frequently, however, but a small portion of the money for the purchase is advanced by the buyer. This practice is called buying on margin. A relatively small sum will give a claim upon a considerable number of shares. If the stock rises in value, the gain is much greater than if a small number of shares had been bought outright. If the stock falls in value, the loss is equally great and may wipe out the entire margin. The speculator must either put up more margin or be sold out. The broker, who carries the stock for his customer, charges him interest upon the difference between his margin and the entire value of the security. By demanding a sufficient margin, he usually protects himself against a fall in the value of the security. Selling short is the reverse of buying on margin. Here the speculation is based on a fall in the market value, and the speculator sells for future delivery what he really does not possess. Here a rise in value means the loss of the margin. It is difficult to draw the line legally between legitimate speculation and gambling. How- ever, laws have been passed against some of the worst R 258 Problems of American Democracy evils of the system, such as the "bucket shop," which tempts the small speculator to gamble on the stock market. QUESTIONS FOR DISCUSSION 1. Who is the enterpriser and what are his economic functions? 2. Give some qualities and characteristics of the successful enterpriser. 3. Explain the advantages and disadvantages of the partnership. 4. Define a corporation. Give its characteristics. 5. What advantages does the corporate form of business organi- zation possess? 6. Outline the steps by which a new corporation would be formed. 7. Sketch the usual form of organization. 8. Explain the differences between stocks and bonds. 9. Enumerate some of the possibilities for abuse under the cor- porate form of business organization. 10. Show the dangers of subsidiary companies. 1 1 . Explain what is meant by stock watering. 12. How and why does it happen? 13. Explain some other forms of financial jugglery. 14. Why is overcapitalization a pernicious practice? 15. What can be done by the state to prevent it? 16. Differentiate between investment, speculation, and gambling. 17. What is buying on margin? 18. AVhat is "selling short"? TOPICS FOR SPECIAL REPORT 1. Great American captains of industry. 2. The charter of some industrial corporation, real or hypo- thetical. 3. The corporation, a miniature society. 4. The detailed organization of some industrial corporation with which you are familiar. 5. The work of the stock exchange. 6. Brokers and the marketing of securities^ 7. Sound methods of capitalization. 8. Recent cases of overcapitalization. Modern Capitalistic Organization- 259 REFERENCES Burch, H. R. American Economic Life. Chapters XXVII and XXXVII. Clay, H. Economics for General Reader. Chapters IV and V. Cleveland, F. A. First Lessons in Finance. Ely, R. T. Outlines of Economics. Chapter XIII. Hamilton, W. H. Current Economic Problems. Chapter IV. Parts F and G. Marshall, Wright and Fields. Materials for Study of Elementary Economics. Chapter VI. Part B. Meade, E. S. Corporation Finance; Trust Finance. CHAPTER XXI The Regulation of Monopoly I. Economic aspects of monopoly i. Definition 2. Influence of demand 3. Cost of production 4. Limitations on monopoly II. Kinds of monopoly 1. Legal 2. Natural 3. Artificial: a. Labor b. Capital III. The evolution of the trust 1. Pooling 2. Trustees 3. The holding company IV. Social results 1. Advantages 2. Disadvantages V. Political aspects 1. Possible public policies 2. History of regulation: a. Sherman Anti-trust Law b. Clayton Act c. Federal Trade Commission d. Supreme Court decisions 3. Other possibilities 260 The Regulation of Monopoly 261 Economic Aspects of Monopoly. — A monopoly exists when there is sufficient control over the supply of a com- modity, or service, to fix its price. The real test of monopoly is not mere size, but this price- determining power. Thus, the village grocer may be a monopolist, if he is the only one in town and circumstances make outside buying impossible. Monopoly price is that price at which the greatest profit accrues to the monopoly. A high price can only be maintained by restricting or con- trolling the output. Hence the monopoly seeks to control and regulate the supply. The monopoly price may be a high price, but it is not so necessarily. Competitive prices are said to be determined by the so-called law of supply and demand, influence The competitive price tends to increase with ° eman * the demand for a good, and to decrease with its supply. The monopolist must study the demand for his article, and then regulate its supply and price accordingly. Demand for a good is said to be elastic when its sale responds quickly to any change in price. On the other hand, the demand is inelastic when fluctuations in the price of the commodity make comparatively little dif- ference in the amount sold. The demand for necessities is more inelastic than the demand for comforts and lux- uries. The former must be had at any price. If the demand for the article produced is very elastic, an increase in the price may cause the sale to fall off to such an extent that the profits of the monopoly will suffer. More sales at a lower price may result in greater gains. When the demand is inelastic, as in the case of necessities, the power and danger of monopoly are increased. Conditions of production must also be considered. The 262 Problems of American Democracy monopolist must find whether the production of his good follows the principle of increasing or decreasing cost, that Cost of is, whether the cost per unit goes up or down as production. ^ vo i ume f output increases. If the indus- try is one which enjoys the economies of large scale pro- duction, it may be good business to keep the price low. It may cost so much less per unit to produce a larger quan- tity than a smaller quantity, that greater profits may be made with larger sales at a lower price. An artificial limitation upon monopoly is governmental interference. The two natural limitations are the forces T . . . of substitution and competition. If the price Limitations x m x on rises too high, the consumer may cease his con- monopoly. . . sumption of that particular good and substi- tute another in its place. Thus, if meat becomes exorbi- tant in price, the thrifty housewife will be tempted to buy more fish and eggs. Substitution is difficult, however, with the cheapest necessities of life, such as salt or matches. A rising monopoly price may sometimes stimulate action upon the part of the producer, as well as upon the part of the consumer. Competition may be revived. The history of the sugar trust illustrates how a rise in price made it possible for independent producers to enter the market. A later combination secured another temporary monopoly, and the price was again raised. Other inde- pendent concerns, however, entered the field and the price was lowered. In the background stands the State, when- ever governmental interference becomes necessary. The power to regulate price has been called "the gun behind the door." Kinds of Monopoly. — Numerous classifications of mon- opolies have been attempted, but all seem to overlap. The Regulation of Monopoly 263 Legal monopolies are those based upon law or govern- mental privilege. The production of tobacco and matches in France and salt in Saxony illustrates govern- mental monopolies. The post office in the United States is a legal public monopoly. Even where public utilities are not owned and operated by the government, there may be exclusive terms in their franchises which make them' legal monopolies. Patents and copyrights are illustrations of private legal monopolies. Natural monopolies are those of location or organiza- tion. Where the supply of a commodity is fixed, it is fairly easy to establish a monopoly. The scarce .,,-,., , ,. , „ Natural. and rather localized sources of diamonds well illustrate this point. Again, monopoly of supply may be secured by obtaining control of the anthracite mines. Many public utilities illustrate not only legal monopolies, but also natural monopolies of organization. Competition is wasteful when there is a large "overhead expense," that is, fixed costs which must be met irrespective of the busi- ness done. There is a tendency toward monopoly in many industries of large scale production. This is especially true when they operate under the principle of increasing returns, that is, when profits increase relatively faster than the business. This is illustrated by the railroads, where a relatively large proportion of the freight charges goes for fixed expenses of maintenance, which are rather inde- pendent of the volume of business done. The third group may be called artificial monopolies. Although monopolies of organization, they are not in one sense natural monopolies. They merely repre- Artificial: sent the artificial organization of either labor Labor - or capital. A labor union, for example, secures a mon- 264 Problems of American Democracy opoly position if its membership includes practically all the workmen of a given trade or craft. Some unions have striven to limit the membership in the trade by a rigorous apprenticeship. Such a practice may have its justification, but the logical outcome of organization is monopoly. The closed shop is one in which only union men are employed and represents, to a certain extent, a monopoly of labor. The trust may become an artificial, capitalistic monopoly. Although a monopoly of organization, it is not a natural monopoly unless it illustrates the principle of Capital. . . ™ - . - increasing returns. The secret of the power of the trust is its bargaining strength, as much as its pro- ducing efficiency. If monopoly is necessary to secure the gains of large scale production, the industry may be termed a natural monopoly. If, on the other hand, it has become a monopoly merely by the process of capitalistic combina- tion, the monopoly is artificial. From an economic point of view, it is a colossus with feet of clay. Economists dis- tinguish between two methods of combination, the ver- tical and the horizontal. Vertical combination is an attempt to get control of an industry through each of its different stages. Control begins with the raw materials and ends with each of the finished products. Vertical combination may, however, not be a monopoly because there may be powerful independent producers. But a tendency toward monopoly is sure to manifest itself. Horizontal combination is an attempt to combine all the producers of a given article in a given stage of production, as, for illustration, all the weavers of woolen cloth or all the rollers of steel. The Evolution of the Trust. — The trust is the corpo- ration of corporations. Such a superorganization naturally The Regulation of Monopoly 265 developed through a gradual process of combination. The first stage in its development was known as pooling and originated with the railroads. Agreements 11 • 1 • Pooling. were made between independent corporations to cease the competition that was ruining their profits. Prices were fixed, and the market divided by some sort of "gentlemen's agreement." It was found difficult in many- cases to carry out such an agreement, because some con- cerns would secretly undercut the price. No contract had been made and the courts could not be appealed to for help. Indeed, the law forbade this very practice of price-fixing. The pool was so called because frequently the receipts of the various companies were put into a common fund, to be later divided according to some prearranged apportion- ment. The second stage has given to the trusts their present name. The various corporations, which sought to elimi- nate competition among themselves, agreed to Trustees. turn over their stock to a board of trustees. This board gave back in exchange trust certificates. It could regulate production and fix price because it held a majority of the stock in all the companies. The second stage was short-lived, because the courts declared illegal the practice of trusteeship. The final outcome of this development is the holding company. Under this plan each company maintains a separate legal existence, but there is formed The holding another corporation which is empowered to hold com P an y- stock in the other companies. This corporation is known as the holding company and secures unity of action, because it can command a majority of votes in each of the con- stituent companies. Practically the same purpose of com- 266 Problems of American Democracy modity control and price regulation can be obtained under this method as under the former illegal method of trustee- ship. Social Results. — If the trust organization is a natural monopoly of increasing returns, it is possible for certain Advan- advantages to follow from it. The economies tages. Q £ j ar g e sca ] e production may be reflected in a lower price. Monopoly may avoid the wastes of com- petition and render superior service. In a certain small section of a city, for example, it was found that over a dozen independent milk dealers covered the same route early each morning to the increasing cost of the sleeping consumers. Combination, by effecting economies, could result in lower prices. It is also claimed that monopoly creates a more stable market, for here there is little mis- directed production. Under free competition, the price fluctuates constantly according to conditions of supply and demand, whereas monopoly seeks to study demand and regulate supply accordingly. The natural effect of this process is to stabilize prices. Monopoly price may be steadier than competitive price, but it is frequently higher. Society has not always received Disadvan- its share of the economies of large scale produc- tages. £j on j n jj^ f orm £ i ower prices. On the con- trary, monopolies have made individual fortunes and increased the inequality of incomes. A one-cent advance in the price of some essential may mean thousands of dollars additional profit to the corporation. Furthermore, the seeking of favorable legislation or the obstruction of restrictive legislation by wealthy corporations has some- times had a corrupting influence upon politics. Their ruthless methods toward smaller competitors, however, The Regulation of Monopoly 267 have been the most frequent objections to monopolies. Often the independent concern has been deliberately forced out of business. A great combination has been able to keep prices lower, temporarily, in the section where com- petition exists, until the independent producer is forced to join the combination or to go out of business. Often the economic struggle for existence has been as keen as that among the lower forms of life where the larger animals devour the smaller. Political Aspects. — There are four courses open to society in dealing with monopoly. The first is that of "laissez faire" or "hands off." The earlier Possible economists assumed a state of free competition public policies. which they made the center of their economic systems. But neither the assumption of perfect competi- tion nor the policy of "laissez faire" can be adopted to-day. A second policy which has been tried is that of dissolution. Here the results have been far from satisfactory, because, while the corporation is legally broken up, the monopoly continues under some other form. Some of the devices which make this possible have already been described. The process of "trust busting" has been compared to an attempt to unscramble scrambled eggs. The third alter- native open to society is the policy of public ownership and operation. The extension of this idea to all forms of industry would bring us face to face with socialism. The only other alternative in dealing with problems of monopoly is the policy of government regulation of industrial com- binations. The history of government regulation of industry in this country is interesting. The movement first began with the individual states, some of which passed laws so 268 Problems of American Democracy drastic that they were declared unconstitutional by the courts. Moreover, the federal government alone has control History of over interstate commerce, and it was seen that reg ation: Qn j gu( .j i governmental action could cope with Sherman J ° c Law. big business which operated in all the individual states. Consequently, the Sherman Anti-trust Law was passed in 1890. This act made illegal "every contract, combination in the form of trust or otherwise, or con- spiracy, in restraint of trade or commerce among the sev- eral states, or with foreign nations." It was made crim- inal to "monopolize, or attempt- to monopolize, any part of the trade or commerce among the several states, or with foreign nations." The attempted strength of this act was its very weakness. The Sherman Anti-trust Law could hardly be called successful because of its sweeping indictments against all combinations. Railroad combina- tions and labor unions alike would come under its con- demnation. The courts have, therefore, found it difficult to enforce this law. The Clayton Act, passed in 1914, made more definite the policy of regulation. It modifies and makes clearer the terms of the original Sherman Act, specifically Clayton Act. • 1 1 • * • • -i ■ exempting labor unions. Again, it prohibits one corporation from holding stock in another corporation for the purpose of lessening competition. A similar aim is sought in the provisions which oppose interlocking direc- torates. It is illegal, under certain circumstances, for an individual to be a director in a number of large corpor- ations. Financial and industrial centralization is opposed. Congress also established in 19 14 the Federal Trade Com- mission. This body consists of five members appointed by the President. So far, it is largely an inquisitorial organiza- The Regulation of Monopoly 269 tion. It can demand reports and investigate the activities of corporations which are thought to be violating some of the anti-trust provisions. It may make recom- Federal Trade Com- mendations to the attorney-general and, if mission. necessary, aid in the prosecution of offending corporations. The final authority over corporations rests in the courts, particularly in the United States Supreme Court. That body must pass upon the legal status of a given holding company, that is, it must decide whether Court Decisions. the corporation in question is or is not a legal monopoly. In 1910 the court ordered the dissolution of the Standard Oil Company and the American Tobacco Company. It was shown that these combinations had developed, through unfair competition, an unreasonable restraint of trade. A monopoly existed because of the power to limit output and fix prices. Another important decision was reached in 1920 regarding the United States Steel Corporation. This corporation was not declared illegal, because in spite of its size it was held not to be a monopoly. How can the State best secure to society the gains of large scale production? Because the problem presents so many different aspects, no generalization can be Other attempted. Nevertheless society must have ties, some protection against the abuses of monopoly. Several courses of action have been already indicated. Germany has f rankly recognized monopolies as legitimate and encour- aged great selling agencies known as Kartels. For the United States federal incorporation has been suggested. Uniform and open systems of accounting would also expose monopoly practices and profits to the searchlight of public opinion. It has been argued further that the Federal Trade 270 Problems of American Democracy Commission should be given additional powers. On the other hand, it is contended that too much regulation hampers efficiency. As a final weapon there is always the possibility of government price-fixing commissions. Our war-time experience, however, shows us the difficulty of determining not only a fair price, but also a fair rate of profits. QUESTIONS FOR DISCUSSION 1. Define monopoly and monopoly price. 2. Show the relation of monopoly to large scale production, and to the corporate form of business organization. 3. What do you understand by the so-called law of supply and demand? 4. Differentiate between an elastic and an inelastic demand. 5. What is the principle of decreasing cost? 6. Show the limitations upon monopoly. 7. Make your own classification of the kinds of monopoly. 8. Illustrate the different kinds of legal monopolies. 9. Explain the difference between natural and artificial monopolies. 10. Show how there can be monopolies of labor. 11. What kind of a monopoly is the trust? Why is it so called? 12. Sketch the stages in the development of the trusts. 13. What advantages may a monopoly possess? 14. Show the disadvantages. 15. Explain the attitudes that society may assume toward monopoly. 1 6. Give the main features of two federal laws seeking its regulation. 17. State some recent developments. 18. What suggestions do you have for the regulation of monopoly? TOPICS FOR SPECIAL REPORT 1 . The nature and organization of a holding company. 2. The history and practices of some great capitalistic monopoly. 3. The Sherman Anti- trust Law and its effects. The Regulation of Monopoly 271 4. The Clayton Act — ■ its detailed provisions. 5. The Federal Trade Commission and its work. 6. Great Supreme Court decisions concerning the trusts. 7. The advantages of federal incorporation. 8. An interstate industrial commission. 9. The platform of the Progressive Party in 191 2. REFERENCES Burch, H. R. American Economic Life. Chapter XXVII. Clay, H. Economics for the General Reader. Chapters VII and VIII. Ely, R. T. Outlines of Economics. Chapter XIII. Hamilton, W. Current Economic Problems. Chapter IX. Meade, E. S. Corporation Finance. Tarbell, I. M. History of the Standard Oil Company. Van Hise, C. R. Concentration and Control. Young, J. T. The New American Government and Its Work. Chapters VII and VIII. CHAPTER XXII Government Control of Transportation I. General features i . Natural monopoly 2. Public utility 3. National control II. Development of the railroad 1. Rapid growth 2. Characteristics 3. The evil of discrimination III. Regulation of the railroad 1 . The Interstate Commerce Act 2. The Interstate Commerce Commission 3. Results 4. Effects of the Sherman Act 5. Later legislation 6. Government operation during war 7. Esch- Cummins Act 8. The Railroad Labor Board 9. The difficulties of rate-fixing IV. Other transportation agencies 1. Telegraph and telephone 2. Express companies 3. Water transportation General Features. — Transportation agencies are nat- ural monopolies, that is, they are subject ,to the law of Natural increasing returns. The railroad is an outstand- monopoiy. j n g exam pi e# Profits increase out of all pro- portion to the increase in the volume of business. This Government Control of Transportation 273 makes possible the partial utilization of receipts to- ward paying for the building of such things as tracks, bridges, stations, and rolling stock, rather than for the immediate cost of transportation. Competition, which means the duplication of equipment, is wasteful. The monopolistic character of many transportation agencies was not at first recognized by public opinion or by statute law. Disastrous competition was frequently encouraged. On the other hand, the railroad has often abused its monoply power by unfair practices. Because of the principle of increasing returns, it has sought increased business so eagerly that favors have been shown and discriminations made illegally. The essential character of transportation service, as well as its monopolistic nature, makes it a public utility. Again, the early railroads were built partly by govern- p u bii c ment aid. Finally, a railroad has the right of utlllt y- eminent domain. If an individual does not care to sell his property, but if it is necessary for the construction of a road, the railroad has the power to seize it and to pay him an appraised valuation. For these reasons the railroad and most other transportation agencies have been termed quasi- public corporations. The constitution specifically states that "Congress shall have power to regulate commerce with foreign nations and among the several states and with the Indian National tribes." The absence of this power on the part controL of the federal government had been one of the chief defects of the Articles of Confederation. Nevertheless, the fathers little dreamed of the revolution that was to take place in methods of transportation, nor of the importance of this simple statement. The courts subsequently interpreted s 274 Problems of American Democracy the term commerce in its broadest sense. Chief Justice Marshall, who formulated so many important decisions in our early history, defined commerce to mean intercourse. There has therefore been little dispute concerning the status of such later inventions as the telegraph and the telephone. Most means of transportation are known legally as com- mon carriers. Although the federal government has control over interstate commerce, the state has some slight control over intrastate commerce. With the industrial expansion of the country and the ramification of the great arteries of commerce throughout the land, federal jurisdiction has become relatively more important and overshadowed that of the commonwealth. Development of the Railroad. — The perfection of the locomotive in England took place about the same time as Rapid Fulton's successful invention of the steam boat, growth. /p^g ear ij es t railroads in America were small affairs designed for horse cars. There has been a tre- mendous development from the primitive wood burning steam engine to the powerful locomotive of to-day. The early carriages were small, open affairs like the stage coach, and the speed was slow and uncertain. By the time of the Civil War some improvements had been made and about thirty thousand miles of track laid. During Grant's admin- istration the first trans-continental railroad was built. There was a veritable fever of railroad building, and by the end of the century there were two hundred thousand miles of trackage. The United States leads the nations of the world in railroad mileage. The census of 1920 disclosed almost three hundred thousand miles. According to recent figures of the Interstate Commerce Commission, the labor employed in the railroad industry numbers one and a half Government Control of Transportation 275 million persons. The capital invested is estimated at twenty billions of dollars. Next to agriculture, rail- roading is the greatest single business in the United States. Railroads took the place of the earlier roads and canals in developing the country. The rapid growth of cities and the settlement of the West would have been character- impossible without them. Time and space have lstlcs - been annihilated. It took as long to go from Boston to Passenger Car in 1830 — B. & O. R. R. Washington in the early days of the Republic as it does now to cross the continent. Because of the need for trans- portation facilities early railroad building was encouraged by the government. The national government gave the railroads thousands of acres of the public lands. States 276 Problems of American Democracy advanced money and granted immunity from taxation. Their securities were eagerly bought by both individuals Courtesy of New York Central Railroad The "De Witt Clinton" Train of 1831 and governments. This rapid and extensive railroad build- ing had its misfortunes. Some roads took a long time to show profits, because of the great initial expense and the The Largest Locomotive in the World time required to develop a heavy volume of traffic in the thinly settled sections. Financial failures and reorganiza- Government Control of Transportation 277 tions took place. Meanwhile, the control was gradually shifting into the hands of fewer individuals. To-day, the railroads can be classified not only geographically but also financially. Thus, we speak of the Harriman and Gould lines, or of the Vanderbilt and Moore interests. The monopolistic development of the railroad, although inevitable, was unforeseen. As the railroad grew in size and power, the public attitude changed from Tfae that of encouragement to one of censure. The of discrimi- . -it nation. cry of extortionate rates was raised. It was also claimed that particular cities and individuals were dis- criminated against. A lower charge was sometimes made for a longer than for a shorter haul. This happened in transportation between two seaports, where there was com- petition with cheap water transportation. Again, dis- criminations were made concerning different commodities. Thus, Minneapolis claimed it was so much cheaper to send wheat to the Atlantic Coast for export than flour that her milling business was in danger of ruin. Finally, dis- criminations were practiced against individuals. A large shipper was granted a cheaper rate than a smaller shipper for the same service. An unpleasant connection was shown between railroad discriminations and the growth of certain trusts. The monopoly power of the railroads was felt to have such a powerful effect upon the fortunes of men and the fate of communities that the demand for government regulation became imperative. Regulation of the Railroad. — In 1887 was passed the famous Interstate Commerce Act, which represents the first attempt to deal comprehensively with the whole prob- lem of national transportation. It contained the following main provisions: (1) unreasonable or extortionate rates 278 Problems of American Democracy were prohibited; (2) discriminations between persons, places, and commodities were made illegal; (3) fares and The rates were to be made public; (4) common Commerce carriers were not to charge more for a shorter Act - than for a longer distance under the same conditions of transportation; (5) pooling transactions between railroads were forbidden. For the enforcement of the above provisions a commis- sion was created which is known as the Interstate Com- merce Commission. It originally consisted of five members, appointed by the President with the consent interstate of the Senate. The number of commissioners Commerce Commis- was later increased to seven, and the term of office fixed at seven years. Its original powers were merely those of investigation. Where discriminations were found to exist, the commission was to bring suit against the railroad through the usual channel of the courts.. Since the time of its creation the scope and powers of the Interstate Commerce Commission have gradually widened. It has become the central governing body for the regula- tion of all interstate commerce. The results of the Interstate Commerce Act were more apparent in the matter of preventing discrimination than in preventing virtual "pooling." The publica- A.6SUltS« • r t tion of the rates and the short and long haul clause of the new law helped to prevent discriminations between persons and places, but the prohibition of "pool- ing" was difficult to enforce. The true monopoly char- acter of the railroad had not been discerned at that time. It was not seen that it was both impossible and undesir- able to try to restore competition between railroads. There- fore, when the attempt was made, the inevitable hap- Government Control of Transportation 279 pened. When deprived of the privilege of "pooling," the roads were forced into combination. Financial wrecks and reorganizations took place, out of which arose fewer and greater systems by the process of consolidation. The Sherman Anti- trust Act of 1890 marks the next step in the history of railroad regulation. Many of the combinations which had been effected were declared illegal. In 1897 the Supreme Court f t h C e s declared against associations for the purpose of fct e . rman rate-making. In 1904 it ordered the dissolu- tion of the Northern Securities Company, which was a holding company designed to unite the Great Northern, the Northern Pacific, and the Burlington systems. In 191 2 the court dissolved the merger of the Union Pacific and the Southern Pacific Railroads, because the former company held forty-six per cent of the stock of the latter company. It is safe to say that the true monopolistic character of the railroad was not seen until the advent of the World War. The Elkins Act of 1903 increased the effectiveness of the Interstate Commerce Commission by giving it additional powers. Corporations, as well as their agents, Later legis- were now liable to prosecution. Again, the latlon - Hepburn Act of 1906 permitted the Commission to revise rates. Before this time, it could merely rule that a given rate was unfair. Now it had the power definitely to fix a maximum rate. Again, its authority was extended to all companies doing an interstate business, including pipe- lines. The later Act of 1910 created a special Commerce Court in which railroad cases might be tried. However, this experience was not successful and the court was abol- ished in 1 9 13. The Adamson Act of 19 16 dealt especially 280 Problems of American Democracy with problems of wages and working conditions in the rail- road industry. At that time the railroad brotherhoods were threatening to strike and to hold up the transporta- tion facilities of the entire nation. Such a situation was antagonistic to the welfare of the whole American nation. Behind the great mass of railroad legislation of the twentieth century may be observed the steady advance of the principle of government regulation and the mentTpera- gradual recognition of the monopoly character war. durmg °f the railroads. These tendencies were hast- ened by the World War, when it was imperative to establish a unified control over the chief transportation agencies of the country. On January first, 1918, the President declared the railroads of the nation to be under the operation of the government. This was continued for twenty-six months under a Director General of the Rail- roads. Similar governmental control was exercised over the telegraph and telephone lines. Such measures played an important part in winning the war. Prompt action was necessary to insure the transportation of troops and war materials in the most direct and systematic fashion. Government operation of the railroads, however, was purely a war measure and its success must be judged accordingly. The needs of such a critical period were so abnormal that the experiment proved neither the advan- tages nor the disadvantages of general government oper- ation of public utilities. With the cessation of hostilities came the question of the future of the railroads. While some writers made a plea for the continuation of government operation, with the ultimate aim of government ownership, others were equally insistent in demanding that the roads be turned back • Government Control of Transportation 281 immediately to their owners. A third scheme, called the Plumb Plan, proposed the control of the railroads by the workers. Finally, the Esch-Cummins Act was passed, and the roads were returned to private Cummins ownership on March first, 1920. This was an exceedingly important piece of railroad legislation. The equipment and rolling stock of the roads had not been kept up during the war by any replacement fund. Hence, the new legislation provided for a credit fund of three hundred million dollars. It also planned for the ultimate consolidation of the railroads into a few definite systems. In the third place, the Railroad Labor Board was created. The powers of the Interstate Commerce Commission were strengthened, so that it could decide what were fair rates and profits. For the first two years of private control, the act defined a fair return on the investment to be five and a half per cent. An additional one-half per cent was allowed for permanent improvements. The principle of profit-sharing was also introduced, for it was provided that any excess over six per cent should be divided between the corporation and the government. The present status of the railroads is thus private ownership and operation, with almost complete governmental regulation. The Railroad Labor Board is composed of nine members representing equally the workers, the managers, and the public. They are appointed by the President, with the approval of the Senate, from lists of road Labor ^ ' Board. six names each. The workers and the managers prepare their own lists of candidates. The Board investi- gates and reports upon working conditions and wages in the railroad industry. It is hoped that such a conciliatory body will be able to reconcile the interests of capital and 282 Problems of American Democracy labor with each other and with the best interests of the general public. Thus, the railroad problem is of vital interest to the employee, to the owners of railroad securities, and to Th d'ffi t ^ ie P u ^^ c - The railroad makes possible geo- cuities of graphical division of labor, and secures to a rate-fixing. . . nation its greatest volume of production. The limiting force is the cost of transportation, which is con- stantly balancing the gains of geographical division of labor. Freight charges are a considerable element in the cost of living. On the other hand, it is equally important that these quasi-public corporations pay a fair rate of profit to the owners of their securities. The fixing of fair railroad charges is a difficult matter because of the nature of the railroad business which operates upon the principle of increasing returns. A fair rate of profit is equally hard to determine. In fixing the rate, several factors must be considered. Shall it be uniform throughout the country, or should it vary with the different roads according to the volume of business and the cost of construction? A recent increase in freight rates made such a geographical distinc- tion. Again, shall a fair rate of profit be computed upon a valuation of the railroad, or shall the reverse process be adopted? The capitalization of the railroad itself cannot be accepted as a correct valuation because of the evil of overcapitalization. The Interstate Commerce Commission found it necessary to attempt a physical valuation of the railroads and their tangible assets. Other Transportation Agencies. — The railroad is the chief transportation agency and typifies the general problem of governmental regulation. Other common carriers are the telegraph and telephone. Before the Civil War, telegraph Government Control of Transportation 283 lines had been constructed along the chief railroads. In the last quarter of the nineteenth century, came Bell's invention of the telephone. At first it seemed Telegraph and adapted only for short distances, but it is now telephone, possible to talk across the continent. Nevertheless, for long distances, it is still more economical to use the telegraph. The carrying of the mails is a long-recognized public function, but this is not true of the transportation of small packages. Indeed, only recently has the govern- Express ment established a parcels post. The express com P anies business had been left to private initiative. Express com- panies grew in size and power with the development of the railroads, with which a close connection was maintained. Monopolistic tendencies were displayed by such usual symptoms as price-fixing. Although the great companies remained separate, they divided the country among them- selves to avoid the wastes of competition. As their rates became higher, the demand for a parcels post increased. In spite of the opposition of the private companies, such a law was passed in 19 13. The comparative rates of the par- cels post were so low, that, in the following year, one great express company was forced out of business. The possibilities of our waterways were overlooked in the era of railroad building. The earlier canals fell into disuse, until the increasing freight rates called attention to the cheaper method of transpor- transpor- . ^ tation. tation by water. Railroads and waterways should form cooperating, rather than competing systems, for each can supplement the other. Railroads can be used for transporting valuable and perishable goods, while the cheap and bulky commodities can be left for water transportation. It will be remembered that the natural resources of America 284 Problems of American Democracy are rich in water possibilities. The internal and coastwise shipping of the United States is restricted to American ships, but before the World War the American flag had almost dis- appeared from the high seas. European demands during the great conflict created a merchant marine, and it remains to be seen what part it will play in future international trade. During the war a large number of ships were built in an incredibly short time, but at an enormous expense to the government. QUESTIONS FOR DISCUSSION 1. Explain the principle of increasing returns in connection with the railroad. 2. Give some of its effects. 3 . Explain and illustrate the meaning of quasi-public corporations . 4. Give the reasons why the railroads should be so classified. 5. Explain the term "eminent domain." 6. Why does the federal government have control over inter- state commerce? 7. What interpretation has been put upon the term "commerce"? 8. Show the rapid increase of railroads in the United States. 9. Show their present size and importance. 10. How did the government foster early railroad building? Why? 1 1 . Explain and illustrate the various types of railroad discrimi- nations. 12. Give the leading provisions of the Interstate Commerce Act and its effects. 13. Show the effects of the Sherman Anti-trust Law upon the railroads. 14. Name and give the important feature of several pieces of railroad legislation from 1890 to 1920. 15. How did government operation of the railroads succeed during the war? 16. When and under what provisions were they returned to their woners? Government Control of Transportation 285 17. Why are just railroad rates both important and difficult to determine? 18. Show the importance of some other transportation agencies. 19. Show the relation of water transportation to rail transportation. TOPICS FOR SPECIAL REPORT 1. The railroad as a monopoly. 2. The history and powers of the Interstate Commerce Com- mission. 3. Railroad regulation from the Sherman to the Adamson Acts. 4. Government operation during the war. 5. Advantages and disadvantages of nationalization of railroads. 6. The Esch-Cummins Act — its detailed provisions. 7. The Railroad Labor Board — its work and functions. 8. Railroad valuation and rate-fixing. 9. Government versus private ownership of railroads. 10. How railroads are operated in Europe. REFERENCES Burch, H. R. American Economic Life. Chapters XXIX and XXX Carver, T. N. Principles of Political Economy. Chapter XIX. Ely, R. T. Outlines of Economics. Chapter XXVII. Hamilton, W. Current Economic Problems. Chapter VIII. Johnson, E. R. American Railway Transportation. Johnson, E. R. and Huebner, G. G. Railway Traffic and Rates. Reports of Interstate Commerce Commission^ Smith, J. R. The Ocean Carrier. Young, J. T. The New American Government and Its Work. Chap- ter VI. CHAPTER XXIII Regulation of International Trade I. Fundamental principles i . Geographical division of labor 2. The mode of payment 3 . The complicated process II. The tariff problem i. Gains of free trade 2. Infant industries 3. The home market 4. Work and wages 5. National self-support 6. World tendencies III. Tariff policies in America 1 . The early period 2. Results of the Civil War 3. Recent legislation 4. The tariff in politics 5. The Tariff Commission IV. The expansion of American commerce 1 . Its character 2. Recent changes 3. Effects of the World War: a. On exports b. Rate of exchange 4. The outlook Fundamental Principles. — Improved methods of transportation, such as the locomotive and the steamboat, 286 Regulation of International Trade 287 widen the scope of foreign as well as of domestic commerce. Monopoly, large scale production, and the corporation are world phenomena which have affected the Geograph- development of trade relationships. The Indus- ^ n ^J 1 ' trial Revolution intensified geographical division labor - of labor and resulted in the expansion of international commerce. England was the first nation to experience this great industrial adjustment, which later appeared upon the continent of Europe and in America. At the present time the Industrial Revolution is at work in Japan. This movement profoundly alters the volume and character of foreign trade. The State ceases to be economically self- sufficient and becomes more specialized. The exports of manufactured articles tend to increase, as well as the importation of foods and raw materials. Without the Industrial Revolution, however, geographical division of labor could still be observed. The climatic differences throughout the world make it impossible for any one nation to produce all the necessities and comforts of modern life. Thus, the nations of the North exchange their furs for the coffee of the tropics. Just as there has been developed no commonly accepted international language, so there is as yet no unified inter- national currency. Nevertheless, gold is the The mode standard of value for all foreign trade, and the of P a y ment - unit of measurement commonly used is the English pound. International drafts are generally drawn upon some well known London bank, for that city is the commercial and financial center of the world. It is very important, how- ever, that the student look behind such mere paper trans- actions. In the final analysis goods are paid for with goods. A nation will not go on exporting commodities unless it 2 88 Problems of American Democracy expects to get other goods in return. In the long run, the imports tend to balance the exports. The temporary dif- Ewing Galloway The World's Market Place — New York City ference between the two is known as the balance of trade. An excess of exports is known as a favorable balance of Regulation of International Trade >Sq 290 Problems of American Democracy trade. It is generally cancelled by a shipment of gold. It was formerly thought to be a very desirable thing for a nation to have an excess of exports, and a compensating stream of gold flowing into the country. Experience, how- ever, has shown that the favored country may suffer from high prices, partially caused by the increased amount of gold. Th'e exchange of goods which we call international trade may not take place directly between two nations. Thus, the United States may send pork to France, caied which exports wine to England, which exports process. . cloth to Brazil, which in turn sends coffee to the United States. When international accounts are balanced the American pork is paid for with Brazilian coffee, just as the English cloth is paid for with French wine. The shipping of gold is reduced to a minimum by the use of credit instruments such as the draft. London has been a world's clearing house in which are balanced the total imports against the total exports of a nation. The great majority of debts are paid by an exchange of paper, but the final difference between exports and imports is settled by a shipment of gold. The Tariff Problem. — Free trade is a frank recognition of the gains of geographical division of labor. It is a direct Gains of application of the law of comparative costs, by free trade. w } u , cn Q^oh. nation tends to export those things which it can produce most effectively and to import those things which it can produce least effectively. Tariffs are barriers raised by the various nations against the free flow of international trade. They attempt to make political boundaries economic boundaries also. Within a nation the gains of geographical division of labor are unquestioned. Regulation of International Trade 291 Thus, the alarm clocks of Connecticut are freely exchanged for the oranges of Florida. It would be possible to build clock factories in Florida and make the state independent to that extent of Yankee ingenuity. Vast green-houses could be built and maintained at considerable expense in Connecticut, in order that the New England business man could have the satisfaction of eating home-grown oranges. The absurdity of such economic waste is apparent. Within our nation state lines offer no obstacles to the free flow of domestic commerce. Nature recognizes no such artificial barrier as a tariff, and the forests of Oregon and Washing- ton continue across the Canadian border. The same is true of the wheat lands. In the early days of the Republic, individual states attempted to raise tariff walls against each other. This became a glaring evil under the Articles of Confederation, when New York and New Jersey attempted such discrimination. The new Constitution, therefore, gave to the federal government control over both interstate and foreign commerce. A number of considerations have prevented the exten- sion of free trade from a national to an international basis. Perhaps the best defense of protection is found infant in the infant industry argument, which appeared industnes - early in American history. It was argued, for illustration, that America had as good natural resources as England for the production of iron. Nevertheless, so long as the cheap foreign product came into the country the native product could not be developed. Home production in this field could not succeed because it was impossible for an infant to struggle against the strength of maturity. But if a tariff were imposed, the native industry could develop. Under such governmental protection, it could pass from 292 Problems of American Democracy infancy to maturity and finally stand upon its own feet. The industry could then meet foreign competition without the artificial protection of the tariff. The question then arises as to the length of the period of infancy. A leading authority upon the tariff suggests that thirty years of protection is a sufficiently long trial period to demon- strate whether an industry is capable of maintaining itself against foreign competition. At the end of such a period, however, the " vested interests" cry is often raised when an attempt is made to abolish the protection. Again, it is contended that a successful industry is loathe to admit that it has reached the stage of economic independence. Higher prices and profits may be enjoyed at home by the trusts, which can undersell their foreign competitors in the Old World markets. The home market argument for protection asserts that the introduction of new industries will not curtail the pro- The home duction of raw materials within a nation. The market. demand of mill workers for food is an illustration of how the farmer will find a new home market for his products. It must be remembered, however, that there is no creation of an additional market, but merely the substitution of an increased home market for a decreased foreign market. Goods are exchanged for goods. If less manufactured goods are imported because of the home industries, comparatively fewer raw materials will be exported. The "full-dinner pail" has also been used as a cam- paign slogan by the party seeking election upon the issue Work and of the tariff. It is claimed that the tariff meas- wages. ures £ ne difference in the wages paid European and American workmen. The tariff thus protects our Regulation of International Trade 293 workers against the competition of cheap foreign labor. It is further contended that the protected industries fur- nish additional employment. However, opponents of the tariff assert, by a similar line of reasoning, that no additional employment has been created, but that the process is merely one of substitution. Employment in the pro- tected industries has grown at the expense of the unpro- tected. Does the tariff raise wages? Theoretically, real wages should be highest when a nation is turning its pro- ductive energies into the most effective kinds of labor, as determined by the gains of geographical division of labor. It is also objected that protection raises the general cost of living for all workers, although wages may be high in some strongly protected industries. The national self-sustaining plea is another strong argu- ment for protection. A nation is safer, freer, and more independent when it enjoys diversified indus- tries. Over-specialization may spell unemploy- seif- ment to a community as well as to an individual. Ireland and India have suffered great hardships because they have been largely agricultural nations operating under the one-crop system. On the other hand, over-indus- trialization may be equally dangerous because of the pos- sibilities of unemployment. Unlike the precarious foreign market, the home market is subject to political control and hence is more stable. England is an illustration of an industrial nation which is dependent upon foreign markets for both imports and exports. War makes the situation more acute. If, during the World War, Great Britain had not had control of the seas, she could have been starved into submission within a few weeks. Again, it was found that the manufacture of optical glass needed immediately 294 Problems of A merican Democracy for artillery sights was a German industry. Hence, a special government report placed much emphasis upon what are known as key industries. Thus, there has been found to be a close relationship between the manufacture of dye-stuffs and the production of explosives. As long as war continues, there must be economic as well as mili- tary preparedness. Armaments and tariffs go together. The political unification of Germany was preceded by the Zollverein or customs union among the various states. The French Revolution abolished the internal customs line and created a new national consciousness. Free trade is an ally of internationalism. In the middle of the last century it appeared for a time as if the principle of free trade would triumph. England World had repealed the corn laws which taxed the tendencies. i m p 0r t a ti n of foodstuffs. Secure in her com- mercial and industrial supremacy, she was leading the world to free trade. America was following the principle of a tariff for revenue only, more than ever before in her history. Events, however, soon shaped themselves other- wise. The Civil War created an unprecedented need for increased revenue. Out of the struggle came a high pro- tective tariff, which continued indefinitely after the war was over. With the Franco-Prussian War in 1870, the unification of Germany was completed. Under the lead of the Iron Chancellor, Bismarck, a series of protective measures was passed and German manufacture grew apace. In a tariff war, other nations are forced to retaliate. Toward the close of the century, therefore, France fol- lowed with two important protectionist measures which, however, provided for reciprocity. Although Great Britain was forced to face new competition from both Regulation of International Trade 295 Germany and America, she clung tenaciously to her policy of free trade. Some of her statesmen, however, began to question the wisdom of such a lone course, for Canada and other British colonies had passed tariff legislation. Con- siderable agitation was developed for some system of imperial preferences, which would give the advantage to commerce within the British Empire. The World War has also intensified the feeling toward closer economic relationships between the mother country and the self- governing colonies. Tariff Policies in America.— The Revolutionary War did not mark such an immediate turning point in American industrial development as it did in our political The early history. To be sure, there had grown up a few peno ' native manufactures and, at the outset, Alexander Hamilton had proposed a policy of protection. Nevertheless, our early exports were almost entirely raw materials and America, like most other western nations, was dependent upon England for her manufactured articles. The Napo- leonic Wars created a temporary interruption in this free interchange of goods. The Embargo and Non-Intercourse Acts of Jefferson's administration were followed by the War of 181 2. It was at this time that the infant industries of America were born. For illustration, it was then that the maufacture of cotton cloth grew rapidly in New Eng- land. With the close of the great European struggle, our growing manufactures were threatened with a flood of goods from Europe. Considerable protectionist sentiment was developed, and some tariff measures were passed in the period from 18 19-1824. The South, which was largely agricultural, objected strenuously to such increases in the cost of living. The climax was reached in the famous 296' Problems of American Democracy " Tariff of Abominations." Nullification and secession were threatened by South Carolina, but checked by the vigorous action of President Jackson. Lower rates were introduced in later bills up to the middle of the century. The tariff as Americans understand it to-day dates from the time of the Civil War. The financial needs of the Results of emer g enc y increased the rates of internal the Civil revenue. It was necessary to raise the tariff rates accordingly. This is known as the prin- ciple of compensation. The Morrill Act of 186 1 was followed by other and higher tariffs as the war dragged on. By 1869 the average tariff rate had been raised almost fifty per cent over that of 1857. It was not expected at that time that this new level would be permanent, but the end of the war brought no reduction. The high internal revenue rates were removed, but all attempts to lower the tariff were unsuccessful. Indeed, in some cases the rates were raised. The Republican party which had brought to a successful conclusion the struggle for the preservation of the Union continued in power and made protection one of its principle issues. The high water mark was reached in the McKinley Act, which was passed in the administration of President Harrison. The principle of protection was enforced even at the expense of revenue. For illustration, a duty of two cents a pound upon sugar was removed, but a bonus of two cents a pound was placed upon sugar produced within the country. The Democratic victory under Cleveland meant an attempt to lower the tariff. The Wilson Bill was passed, Recent but the President let it become law without legislation. ^ s jg na ture because of his dissatisfaction with its general character. The rate was lowered to about the Regulation of International Trade 297 general level prevailing before the passage of the McKinley Bill. The business depression of that period, however, told against the party in power. With the return of the Republican party came the Dingley Act which restored the high level of rates provided for in the McKinley Act. The prosperity of the period was immediately attributed to protection, and for a decade the tariff question lay dormant. Other new forces, such as monopoly and the high cost of living, came into the fore ground. It was vaguely felt that the tariff had some causal relationship to prosperity. Although the Republicans continued in power, a downward revision of the tariff was promised. The Payne-Aldrich Act of Taft's administration was supposed to be a step in this direction. But, although it lowered some duties, it raised others and thus maintained nearly the old level. A special session of Congress, called by Woodrow Wilson, resulted in the passage of the Underwood Tariff Act in 19 13. It was a frank attempt to lower the duties. Wool and iron, for example, were put upon the free list. The advocates of protection predicted national dis- aster, but the outbreak of the World War prevented a normal trial of the new tariff. Since 19 14, the entire in- ternational situation has been altered. Such a brief sketch has sufficed to show how the tariff has been made the foot ball of political parties. It has loomed large before the minds of the American The tariff people, who have attempted to explain various in P° lltics - economic phenonena from this standpoint. One side has attributed prosperity to it; the other, the trusts. The truth will be found in neither extreme. Professor Taussig, who is the leading student of the tariff in America, feels that its effect upon our industries has been somewhat exagger- 298 Problems of American Democracy ated. The factor most disturbing to business is constant change. "The tariff — alocalissue" was found by Hancock to be a most unfortunate political slogan. Nevertheless, such is often the case. The economic organization of our country is complex, and each community or citizen seeks protection for its own product, but desires to buy all others at the cheapest price. Consequently, a tariff bill is fearfully and wonderfully made. It is arrived at after a long and tor- tuous process of compromising. Here the evil of log-rolling appears at its worst. In order to take the tariff out of politics the Tariff Com- mission has come into existence. Such a body was author- ized by Congress in 19 16. It is bipartisan and Commis- consists of six members, appointed by the Presi- sion. dent, not more than three of whom belong to the same political party. The function of the Commission is that of investigation. Its purpose is to make a scien- tific and economic study of the effects of various tariff schedules and rates upon the industries affected. Such material is furnished to the President and to the appro- priate committees of Congress when requested. One important phase of the work is the study of international tariff relationships and of the possibilities of reciprocity. The Expansion of American Commerce. — American foreign commerce is relatively less important than that of Its many European nations. Before the World character. ^ ar ^ p er capita value of the imports of Great Britain was four times as great as our own, and the exports twice as great. America is very nearly economically self- sufficient and practices great geographical divisions of labor within the nation. Our imports consist largely of such things as sugar, coffee, drugs, silks, rubber, and some Regulation of International Trade 299 £ 300 Problems of American Democracy manufactured articles. Chief among our exports are breadstuffs, cotton, cotton cloth, copper, oil, iron, steel, and agricultural machinery. The results of high protection can be seen in the changed character of our exports since the Civil War. Among the Recent goods exported manufactures have increased, c anges. an( j raw ma terials have held a relatively less important place. Before the World War the exports of manufactured articles had exceeded the imports. This fact led some writers to maintain that America no longer needed protection. In the second place, the total volume of foreign trade has increased rapidly. From the Civil War to the close of the century, the annual value of the exports increased from less than a half billion dollars to over a billion dollars. Imports increased rapidly, but not to the same extent as the exports. Throughout most of our early history imports had exceeded exports. As is the case with new countries, this represented mainly the importation of foreign capital for the development of natural resources. Within a score of years after the Civil War, the value of the exports passed that of the imports. Up to 1920 there was a steady increase in the favor- able balance of trade. Between 1906 and 19 10, for exam- ple, the annual value of our imports averaged one and a half billion dollars and our exports almost two billions. Before the outbreak of the World War the United States was well on its way toward becoming a great exporting nation. The World War caused an unprecedented increase in our exports. From 1910 to 1919 the annual value of our exports to Europe increased from one and three-quarters of a billion dollars to more than seven billion dollars, while Regulation of International Trade 301 the value of our imports increased from one and a half billion dollars to only three billion dollars. Thus, our so- called favorable balance of trade increased to four Effects of billions of dollars. Although a steady stream World War: of gold came from Europe to America, there was not nearly enough of the precious metal to cover such a difference between the value of imports and exports. The war-stricken nations of Europe needed supplies, and their governments floated huge loans in this country. When America entered the conflict, a further extension of credit was granted by the federal government. The United States became Europe's creditor to the extent of some ten billions of dollars. Another effect of the war was the breaking down of the mechanism of foreign exchange. Ordinarily an English pound is worth about four dollars and eighty- Rate of six cents in American money, but for a time its exc ange ' value fell to considerably less than four dollars. The French franc, ordinarily worth twenty cents, exchanged for five cents. The rates of exchange for the Central Powers were still lower. This breakdown of the mecha- nism of international exchange was due not only to the one- way flow of goods from America to Europe, but also to the depreciation of European currency. Gold is the inter- national standard of value, and America was one of the few nations whose currency was actually maintained on a gold basis. War-stricken Europe for many years to come needs American goods for reconstruction. Nevertheless, a high rate of exchange makes their purchase in Amer- The ica very expensive. Again, the method of pay- out 00 ' ment is dubious. The United States is flooded with 302 Problems of American Democracy European promises to pay, and a further extension of credit seems undesirable. Statesmen and students are try- ing to decide how the debt already in existence can be paid. It is the consensus of opinion that such an enormous obli- gation can only be gradually repaid by a flow of goods from Europe to America in excess of our exports to Europe. Business men, however, are very anxious about the con- tinued effect of an unfavorable balance of trade upon our native industries. When once European nations are ready to export, America may anticipate a steady flow of foreign goods into the country. The destruction of home indus- tries is felt by many to be a worse evil than the possible failure to collect the European debt. With the Republican party in power, however, a protective tariff seems assured. QUESTIONS FOR DISCUSSION i . Show how payments are made in international trade. 2. What is a favorable balance of trade? Is it an unmixed blessing? 3. Review the gains of geographical division of labor. 4. Show the relation of free trade to those advantages. 5. Explain and criticize the infant industry argument for pro- tection. 6. Do the same for the home market argument. 7. Does the tariff raise wages and create additional employment? 8. What are the advantages to a nation of being economically self-sufficient in peace times as well as in war? 9. Show the recent world tendencies toward protection. 10. Discuss protection in America before the Civil War. 1 1 . Show the effect of the Civil War upon the tariff. 12. Outline the course of protection since that time. 13. Show the evil effects of the tariff in politics. 14. Explain the purpose, composition, ' and functions of the Tariff Commission. Regulation of International Trade 303 15. Contrast the foreign commerce of the United States with that of England. 16. Show the changes in our foreign commerce that have taken place between the Civil War and the World War. 17. Enumerate the chief effects of the World War upon our foreign commerce. 18. What present problems of international trade has the World War created? TOPICS FOR SPECIAL REPORT 1. The mechanism of foreign trade, e. g., trace how a cotton planter sends his goods to Liverpool and receives payment by draft. 2. Make out a complete case for free trade. 3. Make out a case for the tariff, using all possible arguments for protection. 4. The history of protection before the Civil War. 5. The tariff since the Civil War. 6. Free trade in Great Britain. 7. Protection and German industrial progress. 8. The World War and the collapse of foreign exchange rates. 9. The present problem of foreign trade. 10. The advantages of protection to the United States. REFERENCES Clay, H. Economics for the General Reader. Chapter XL Cunningham. The Rise and Fall of Free Trade. Ely, R. T. Outlines of Economics. Chapters XVII and XVIII. Hamilton, W. Current Economic Problems. Chapter VII. Marshall, Wright, and Field., Materials for the Study of Ele- mentary Economics. Chapters XII and XIII. Taussig, F. W. The Tariff History of the United States. CHAPTER XXIV National Regulation of the Currency I. The nature of money i. Barter 2. Early forms of money 3. Characteristics 4. Functions of money 5. Relation to prices 6. Inflation 7. Kinds of money in the United States: a. Metallic b. Paper II. Our monetary standard 1 . The gold standard in Europe 2. Bimetallism in the United States 3. The present gold standard III. Our banking system 1. The National Bank Act 2. The Federal Reserve Act : a. Provisions b. Operation 3. State institutions The Nature of Money. — The earliest form of com- merce is a direct exchange of goods for goods, which is known as barter. In the absence of money, our Barter. . early settlers exchanged their knives and beads for the furs of the Indians. Herodotus gives an interesting 304 National Regulation of the Currency 305 description of how the early Carthaginian traders placed their wares upon the seashore of that strange land beyond the Pillars of Hercules, and later collected in exchange what the natives had left there. With the growth of commerce the disadvantages of barter became evident. Some object of general acceptability came to be used as a medium of exchange. In early Virginia it was tobacco. Tradition has it that forms of ii r i money. wives were once secured by a payment of the cost of passage in that commodity. Wampum and pelts were used by the Indians and copied by the early settlers as media of exchange. In one part of Africa salt served this purpose and, in another part of the same continent, wealth is still measured in terms of cattle. Because of their value and durability, the precious metals have been commonly accepted as money. In primitive societies the metal is used in bulk. Thus, the gold dust of the mining community was exchanged for tobacco and groceries. Shekels, talents, pounds, and other early monetary units were attempts to get a standard measurement by weight. Minting became a recognized function of the State, and coins are as old as civilization. The image of Caesar was carried by the commerce of Rome throughout the known world. At first merely the head of the sovereign was stamped upon one side of a flat disk of metal. In order to prevent chipping, the other side came to be stamped and the edges milled. With the development of credit, paper money has come to be a most important part of the currency. The coinage of money has become a government monopoly in all advanced nations, because this has been found to be the only method of maintaining a stabilized monetary system. 306 Problems of American Democracy In order that a commodity may be used successfully as money it must have general acceptibility. Hence, it must Character- have value. A bulky commodity is difficult istics. tQ carr y m su fi c i e nt amounts. With the iron money of Lycurgus, the Spartan citizen was forced to use an ox cart in order to pay a debt. Furthermore, in deter- mining the availability of a commodity as money, its stability of value must be taken into consideration. Dura- bility and divisibility are also important, and it is essen- tial that the value of the commodity used be easily recog- nized. Precious stones lack the latter characteristics. The two great functions of money are to serve (i) as a medium of exchange and (2) as a standard of value. Barter Functions may be unsuccessful because neither trader may of money. (j es i re the commodities of the other. It is neces- sary to wait until two traders come together with mutually desired articles. Such a situation in the exchange of goods can be avoided only by the use of some commonly accepted commodity of known value, which also constitutes a med- ium of exchange. Again, barter is disadvantageous because one trader may not know the value of his goods in terms of that of the other's. Some commodity, the value of which is universally understood, must serve as the foot rule of measurement, that is, as a standard of value. Money is such a standard of value and becomes the great common denominator of wealth. It has been observed that value is "the power of a good to command other goods in exchange for itself." Price is „ , . merely this value expressed in terms of money. Relation j x to It is the ratio between the value of the goods and the value of the monetary unit. If the amount of money in a country remains constant and National Regulation of the Currency 307 if there is an increased productivity of goods, prices fall, but, if, when money remains constant, there is decreased productivity, prices rise. If, on the other hand, the quantity of goods remains constant and the quan- tity of money increases, prices rise. In America, at the opening of the twentieth century, prices were rising. This phenonemen showed itself before the World War when the production of gold was going on more rapidly than that of other commodities. The war brought still stronger proof to America of the causal relationship between prices and the quantity of money. From July 1, 19 14, to December 31, 1918, the value of gold imported into the United States amounted to a little less than two billion dollars, while the amount of gold exported amounted to less than one billion dollars. Thus, our total amount of gold was increased by about a billion. There was also a tremendous increase in paper money in the form of Federal Reserve notes. On the other hand, vast quantities of goods were being exported to Europe. If we regard price as a fraction, the denominator representing goods and the numerator money, it is easy to see how prices have increased. Early economists had observed that, if the quantity of money in each man's pocket were doubled in some miraculous manner, no one would be the better off. It would be found that prices had similarly doubled. During the World War there was everywhere a great increase in paper money which was out of all proportion to the metallic base upon which it rests. Such a • Inflation. situation is known as inflation. Hence there was a decreased purchasing power of the dollar, the pound, the franc, and the mark. The comparatively highest level of prices was found in those countries which suffered 308 Problems of American Democracy most from inflation. The issue of paper money is a legiti- mate function of the government, but such money should always be redeemable in gold. A parity should be main- tained by the constant possibility of obtaining specie payment for any paper or credit money issued. The other extreme is represented by fiat money, which rests entirely upon credit and not upon a gold reserve. Modern warfare makes use of credit as one of its weapons, and hence infla- tion is a characteristic of such periods. Sometimes the situa- tion practically results in fiat money. During the French Revolution paper currency, called assignats, was issued in great quantities and depreciated in value. Our own Con- tinental currency gave rise to the expression "not worth a continental." During the Civil War the federal government issued notes which were promises to pay. The purchasing power of these greenbacks rose and fell with the success of the Union army. It was not until 1879 that the resumption of specie payment was effected. In our own day, European nations were forced to issue great quantities of paper money, in spite of their depletion of gold. Inflation took place in some countries to such an extent that their currency was hardly more than fiat money. Money may be divided into metallic and paper. The metallic money of the United States consists of gold, silver, Kinds of an< ^ subsidiary coin, known as token money, Tj > e d in use< ^ ^ or ma king change. Although the gold states: dollar is the monetary unit, that metal is coined only in the larger denominations. There is also the silver dollar which is a relic of the days of bimetallism. Subsidiary coins consist of cents, nickels, dimes, quarters and half-dollars. The amount of silver contained in token money is not equal to the monetary value of the coin. A National Regulation of the Currency 309 safe margin is allowed for fluctuations in the value of the metal and to prevent its being melted into bullion. The alloy is made of the harder and baser metals. Pure gold is too soft to circulate indefinitely, and precautions must be made to prevent its deterioration by chipping or filing. There are seven kinds of paper money in the United States. In the first place, come the gold and silver certificates. These are statements that there are so many p aper gold or silver dollars deposited in the treasury, money - which the bearer can demand in exchange at any time. Such paper certificates are easier to carry than the actual metallic money which they represent. There are also some treasury notes of 1890 at present in circulation. In addi- tion to these are the government notes or greenbacks. The total Civil War issue of these national promissory notes, which amounted to almost a half billion dollars, has been largely continued in circulation. Bank notes are a still different kind of paper money and include both the National Bank notes and two kinds of Federal Reserve notes. Our Monetary Standard. — When the new American government was established, the current European bimetal- lic system was followed. Since that time „,,_ J . The gold bimetallism has been gradually abandoned standard in Europe. because of the difficulty of maintaining any fixed ratio between gold and silver. A parity of value could not be permanently maintained between the two metals, because the value of silver, with respect to gold, was constantly changing. England adopted the gold standard in 1816. The so-called Latin Union of Europe attempted to continue bimetallism until 1873. In the meantime the production of silver had so increased that its price was falling. Silver currency threatened to drive 310 Problems of American Democracy out the gold from those countries. Germany adopted the gold standard shortly after her unification in 1870. Her example was followed by Austria, Russia, and the Scandi- navian countries. Outside Europe a similar development was taking place, and for a time the United States was almost the only great nation still holding to bimetallism. At the beginning of our national existence gold had been undervalued at the expense of silver. This drove the for- n . ± „. mer metal out of circulation. In 1834 another Bimetallism c °^ in United inaccurate ratio was established whereby silver States. . ; . was undervalued and displaced by the relatively cheaper gold. During the Civil War the great flood of greenbacks drove out both gold and silver and reduced the nation to a paper basis. In 1873 Congress passed a law omitting the silver dollar from the list of authorized coins. Violent opposition was shown by the silver miners and by Congressmen from the silver states. In 1878 there was passed the Bland-Allison Act which not only reintroduced the silver dollar, but required the Secretary of the Treasury to purchase monthly from two to four billion dollars' worth of silver bullion to be coined into standard dollars. New mines continued to increase the supply of silver, and its value continued to fall. The Sherman Act of 1890 com- pelled the Secretary of the Treasury to purchase enough silver to keep up the market price to the established ratio between gold and silver. The purchase of the metal was financed by the issue of treasury notes, some of which are still an element in our national currency. As a result of these two laws, the federal government acquired a vast hoard of silver bullion and silver dollars. The purchase clause of the Sherman Act was finally repealed in 1893. With the subsequent decline in the relative value of silver, National Regulation of the Currency 311 a great financial loss was threatened. Some years after we had established the gold standard, the actual silver in the silver dollar was worth approximately seventy-five cents. The recent rise in the price of silver during the World War has given the silver in the silver dollar its approximate face value. Bimetallism was made a campaign issue in 1896 by the Democratic party under the leadership of William Jennings Bryan. The Republican victory of McKinley, however, meant the adoption of the gold stand- present ard. This was definitely accomplished in the f^ndard. Gold Standard Act of 1900. The monetary unit is the gold dollar which is equal to 23.22 grains of pure gold or 25.8 grains of gold nine-tenths fine. Silver is largely coined for use as token money, although recently silver dollars have been coined. On the other hand, there is free and unlimited coinage of gold. Any individual can take this precious metal to the mint and receive in exchange gold coin of the same value. Our Banking System. — The new American nation also followed the European custom of establishing a national bank. Many years later the opposition of The President Jackson brought this bank to an end Bank Act. and resulted in the establishment of a system of state banks. Great differences in administration prevailed under this system, as well as reckless and occasionally dis- honest management. This era of "wild cat" banking reflected itself in the issue of irredeemable notes, and in frequent panics, like those of 1837 and 1857, when but few banks could meet their obligations. The Civil War gave us not only a new tariff, but also a new banking system. The National Bank Act, passed in 1863, placed a prohib- 312 Problems of American Democracy itory tax upon the issue of state bank notes. National banks were chartered, which could issue national bank notes secured by a purchase of government bonds. In this way the war was financed. There were other require- ments safeguarding the interests of depositors. The law marked a great step forward in the development of our banking system, but it sacrificed to safety the elasticity of the currency. The volume of the currency of a nation should increase or decrease in proportion to its volume of business, but the act of 1863 made no provision for such elasticity of currency. The lack of coordination between the various national banks, as well as the inelasticity of the currency, made the The National Bank Act inadequate for the needs of Federal the later period of commercial and industrial Reserve # ir Act: expansion. One of the early acts of the Wilson administration was the passage of the Federal Reserve Act in 19 13, which strove to correct these two defects. This law created a Federal Reserve Board, con- sisting of the Secretary of the Treasury, the Comptroller of the Currency, and five other competent men appointed by the President. This board is the central coordinating authority by means of which the earlier lack of cooperation may be overcome. Instead of having one central bank in New York, as has been suggested, the country is divided into twelve districts in each of which is established a Fed- eral Reserve Bank. These are carefully distributed throughout the entire «iation as follows: Boston, New York, Philadelphia, Richmond, Atlanta, Cleveland, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. The capital of each Federal Reserve Bank is furnished by the member-banks of that district. The National Regulation of the Currency 3*3 Federal Reserve Banks are only "bankers' banks," that is, they do not make loans to or accept deposits .from indi- viduals. Membership is compulsory for national banks, but state banks may join by subscribing to certain require- ments. Operation. Courtesy of National City Bank The Twelve Federal Reserve Districts An attempt is made to secure elasticity of the currency by the issue of a new form of credit money known as Fed- eral Reserve notes. These are different from, and in addition to, the national bank notes pro- vided for by the National Bank Act. The issue of Federal Reserve notes is accomplished by what is known as the rediscounting of commercial paper. A business man may write a promissory note, take it to his bank with sufficient collateral or security, and borrow money. If there is a great volume of business, the banks are pressed by numer- ous similar demands. In such periods of commercial activity more money is needed. The Federal Reserve Act 314 Problems of American Democracy provides that a member-bank may take the commercial paper, that is, the promissory notes, of its customers to the Federal Reserve Bank and secure cash for it. This cash consists of Federal Reserve notes, and the process itself is called the rediscounting of commercial paper. By raising or lowering the interest rate for rediscounting commercial paper, the Federal Reserve Banks can discourage or encour- age the extension of credit and the issue of paper currency. No Federal Reserve Bank can reissue the notes of another such bank, but must return them to the original bank of issue. Besides these Federal Reserve notes there are also Federal Reserve hank notes. The World War made a stupendous test of the comparatively new system. The currency was found to be very elastic in that it could be rapidly expanded with increased needs. It was found more difficult, however, to bring about a contraction of credit, and the country temporarily suffered from infla- tion. The enormous issue of Federal Reserve notes dur- ing the World War increased the quantity of money and raised materially the general level of prices. Without the extension of credit, however, it is difficult to see how the war could have been financed. The national government is supreme m matters of cur- rency. It has the sole right to coin money, paper or metal, state in- an d onr y National and Federal Reserve Banks stitutions. can j ssue no tes. The issue of paper or credit money, however, is but one banking function. Institu- tions for the purpose of receiving deposits and loans can be chartered by the individual states. Each state has a number of state banks, for the regulation and inspection of which there is a state banking commissioner or commis- sion. Savings banks are designed to attract the small National Regulation of the Currency 315 investor and to receive money in ordinary amounts. The checking privileges are generally restricted, but a fair rate of interest is paid. The element of security is not over- looked, for the law generally limits the type of investment for which banks can use saving funds. Trust companies are financial institutions which are empowered by law to do other things in addition to accepting deposits and lend- ing money. Real estate, as well as securities, may be bought and sold. The estates of deceased people may be cared for and the property managed for the heirs. Indeed, trust companies are performing a large amount of admin- istrative work formerly undertaken by the legal profession. QUESTIONS FOR DISCUSSION 1. Define and illustrate barter. Show its disadvantages. 2. Trace the evolution of money. 3. What qualities are necessary for a commodity to serve as money? 4. Explain carefully the functions of money. Define terms used. 5. Define value and price. 6. Show the relation of the quantity of money to prices. Give proof. 7. Define specie payment, fiat money, and inflation. 8. Illustrate inflation and show its relation to prices. 9. Name the kinds of money used in the United States. 10. Briefly explain the different kinds of paper money. 11. Explain what is meant by the gold standard. 12. Just what is the monetary unit in the United States by which prices are measured? 13. What were the difficulties of bimetallism? 14. What were the main accomplishments of the National Banking Act? 15. What were the main objects of the Federal Reserve Act? 16. Sketch the organization of the system. 316 Problems of American Democracy 17. Explain what is meant by elasticity of currency and show how it is secured in the United States. 18. Differentiate between banks of issue and banks of deposit. 19. What control do the states have in the matter of banking? 20. Outline the chief kinds of banking institutions and their differences. TOPICS FOR SPECIAL REPORT 1. The early history of the National Bank. 2. National banks of Europe. 3. The greenbacks and the resumption of specie payment. 4. The general consequences of fiat money. 5. Bimetallism in the United States and abroad. 6. The "wild cat" banks of the middle of the century. 7. The evolution of the gold standard. 8. The Federal Reserve System during the World War. 9. Liberty bonds and the inflation of the currency. 10. The present state of the currency. REFERENCES Bullock, C. J. Essays in the Monetary History of the United States. Clay, H. Economics for the General Reader. Chapters IX and X. Fisher, I. The Purchasing Power of Money. Fisher, I. Stabilizing the Dollar. Marshall, Wright and Field. Materials for the Study of Ele- mentary Economics. Chapters X and XI. Scott, W. A. Money and Banking. Taussig, F. W. Principles of Economics. Book III. White, H. Money and Banking. Willis, H. P. The Federal Reserve System. CHAPTER XXV Meeting the Increasing Cost of Government I. General considerations i . Importance of taxation 2. The increased burden 3. Kinds of taxes 4. Principles of apportionment: a. Benefits received b. Ability to pay c. Other considerations II. Federal taxation 1 . National expenditures 2. Sources of national revenue 3. The tariff 4. Excise duties 5. The income tax 6. The excess profits tax III. State and local taxation 1 . Sources of state revenue 2. Local sources of revenue 3. The general property tax IV. The inheritance tax 1 . Its nature 2. Its social significance General Considerations. — Taxation is a matter of vital concern to the industrial and financial life of a people, importance A change in the tariff rate, for illustration, may of taxation. mean tlie life Qr death of an industry, with its resulting social effects. Early in our national history, a 318 Problems of American Democracy Supreme Court decision declared that the power to tax is the power to destroy. We have seen how the National Bank Act prevented state banks from issuing notes by the simple device of putting a prohibitory tax upon such issues. The average citizen realizes that whatever else the govern- ment is, it is surely the power which taxes. A tax may be defined as a compulsory payment made by an individual for the support of the government. Since the opening of the twentieth century the burden of taxation has been rapidly increasing. This has been due to the increasing functions of government, which increased the taxpayer is often apt to overlook. Although burden. : , . ,. . , . the toll gate is disappearing, the various states are vying with each other in the building of great state highways. Cities have created expensive departments of public health and safety to protect the lives and property of the citizens. We have seen the increasing activities of the national government in the matters of commerce and industry. Service is a new ideal in government, and cooper- ative ventures cost money. Finally, there is the enormous burden of war. Modern civilization seems to have brought with it more costly methods and instruments of destruction. At the present time, about nine-tenths of all the expendi- tures of national government go for wars, past, present and future. There are many ways of classifying taxes, most of which overlap. In the first place, taxes may be classified according Kinds of to the unit of government concerned. Thus, taxes. there are local, state, and national taxes. Each of these will be considered in turn. In the second place taxes may be classified as direct and indirect. A direct tax cannot be shifted, that is, paid by some one else. An Meeting the Increasing Cost of Government 319 illustration of this principle is the income tax. The tariff, on the other hand, is an indirect tax and can be shifted. The importer merely adds the tax to the cost of the imported article, and it is finally paid by the consumer. It must not be imagined, however, that the final burden of a tax can be so easily determined. The incidence of taxation is an extremely difficult and involved problem. A third and common method of classifying taxes is based upon the nature of the objects taxed. Thus, we speak of an income, inher- itance, or sales tax. Finally, attempts have been made to classify taxes according to the purposes for which they are imposed. At one extreme is a fee or license tax, in which case the benefit derived is considered so personal that only the person or persons concerned pay the tax. Illustrations of such taxes are the automobile and marriage license fees. At the other extreme are those general services, such as protection of property, which government guarantees to all individuals. Between these two extremes are various degrees of services for which the individual so taxed may or may not receive direct benefit. For example, the prop- erty owner pays a school tax, although he may have no children in school. The theory is that education is a public duty and benefit, for which all must pay. Is there any "rhyme or reason" in our system of taxation, or has it just grown up like Topsy? There are many phil- osophies of taxation, only two of which may be mentioned here. In the first place, there are Princi P les r or appor- those who favor the apportionment of taxes upon tionment : the basis of benefits received. The toll system received. might be used as an illustration. Those who use the roads must pay for their maintenance. Other writers state this principle in terms of the special privilege theory. 320 Problems of American Democracy Thus, the single taxer regards the ownership of land as a special privilege and would tax all land owners according to the value of the natural resources held, that is, according to the special benefits received. Most writers on taxation however, accept the ability to pay theory, which disregards the actual relation between the amount of the tax paid and the degree of benefit derived therefrom. For example, certain privileges are enjoyed by all Amer- icans, regardless of the degree to which they contribute Aunty to the support of government. Of such a char- to pay. acter are public education and the police power of the State. The cost of such public functions must be paid by all. The fairest method of apportionment of this taxation among the citizens seems to be according to their ability to pay. This may be measured in various ways, for example, by income, wealth, or the consumption of economic goods. Hence, we have respectively the income, the general property, and the consumption taxes. The poll tax is contrary to this theory, for it imposes a small, but flat, tax upon all voters who are not property owners. When also the government supplies some service or com- modity like that rendered by a public service corporation, the benefit theory is generally put into practice. Thus, the water tax is an appropriate measure of the individual benefit received through the consumption of water. Adam Smith has given us four maxims of taxation which are still applicable. In the first place, citizens should contribute as nearly as possible to the general expenses in other con- proportion to their ability to pay. Secondly, sideratwns. ^ Q £ axes which each individual must pay should be certain, not arbitrary; while the time and manner of payment should be clear and definite. In the third place, Meeting the Increasing Cost of Government 321 every tax should be levied at the time and in the manner most convenient for the contributor to pay. Finally, no tax should be imposed which is incapable of an economic administration. When Lord Grenville came into the Brit- ish cabinet, he discovered that it was costing the govern- ment more to enforce certain revenue acts in the colonies than they were actually bringing in. Before the days of the great revolution, France was not carrying a load of taxation greater than she could bear; but the taxes were unscientifically distributed and administered. All of the above four maxims were being ignored. A last principle of taxation is that of progression. This was explained by Manu, the Indian sage, three thousand years before the time of Adam Smith. According to this principle not only should the amount of taxes increase with the increase of income, but also the percentage of rate should be advanced. The principle of progression is illustrated in both our income and inheritance taxation laws. Federal Taxation. — Before our entrance into the World War federal expenditures were averaging annually about a half billion dollars. In 191 7, national expen- ditures jumped to over a billion dollars. In expendi- tures. 191 8 and 1919 they were, respectively, eight and fourteen billion dollars. Such enormous sums as were necessary for conducting the war could not be met entirely by taxation. The excess of expenditures over revenues for those years was provided for by the issue of liberty and victory bonds. The United States incurred an unprec- edented national debt. The receipts from taxation for 191 8 and 19 19 were, respectively, a little under and a little over four billion dollars. In 1920 the national expendi- tures were about four and a half billion dollars, while the v 322 Problems of American Democracy total receipts from taxation for the same year were a little over five and a half billion dollars. Thus, there was a sur- plus and the great work of paying for the war had begun. But, in spite of popular agitation, it will be found impos- sible to return in the near future to the prewar level of federal taxation. This enormous revenue was provided by creating new taxes as well as by raising the rates of the old ones. The . receipts from the excise taxes were raised, from Sources of 1 national a third, to over half a billion dollars. With the revenue. .-...., advent of prohibition, however, there was a sharp decline in this revenue, while the tariff failed to help finance the war to any considerable extent. The most powerful revenue producers were found in the income tax and in the excess profits tax. Returns from these sources jumped, from a third of a billion dollars in 1917^0 almost three billion dollars in 1918 and 1919. In 1920 the com- bined income and excess profits taxes yielded almost four billion dollars. War taxes were also placed upon com- munication and upon luxuries, which in 1920 aggregated, respectively, a third and a quarter of a billion dollars. In 191 7 a federal inheritance tax was passed, which yielded a hundred million dollars in 1920. Other sources of national income were found in taxes upon the capital stock of corporations, upon legal documents, and upon admis- sion to amusements. In 1920 these combined sources of revenue furnished a quarter of a billion dollars. We have seen that the tariff is a problem of the national government, for the Constitution gives Congress control over interstate and foreign commerce. It is The tariff. . . ° specifically forbidden, however, to lay any tax upon exports. Duties on imported goods may be either Meeting the Increasing Cost of Government 3 23 specific or ad valorem, according as to whether they are taxed by bulk or by value. Before the World War the tariff was a very important source of national revenue, yielding about half the total receipts of the government from 1910 to 1914. With the conclusion of the war, foreign imports began to increase, and the tariff may again yield considerable revenue. It is unlikely, however, that it will soon regain its comparative importance as a source of taxation. In 1920 it yielded about one- twentieth of the total federal income. It is important to notice that the principle of protection and the principle of revenue may come into conflict in a given tariff. Rates may be made sufficiently high to check the importation of foreign goods, and revenue may therefore decline. England has found that the best revenue producers are duties imposed upon necessities, such as tea and sugar, which are produced outside the country. An excise is a tax laid upon articles consumed, sold, or manufactured within a nation. Hence the term internal revenue is applied to such taxation. The com- modities generally so taxed are liquors, in cer- duties, tain countries, tobacco, and other luxuries. Napoleon once remarked that evils had broad backs. The taxation of luxuries may be planned so as to discourage their consumption as well as to provide revenue. In addition to these three groups of commodities, a number of miscellaneous articles, such as oleomargarine and filled cheese, have been subject to such a tax. During the War, the number of articles so taxed, as well as the rates upon them, were greatly increased. The Constitution originally provided that direct taxes should be apportioned among the several states according 324 Problems of American Democracy to population. In 1894 Congress passed an income tax law, which was later declared unconstitutional by the Supreme The in- Court. An amendment to the Constitution, come tax. ra tified in 1 9 13, now legalizes the income tax in this country. The 19 13 act of Congress placed a tax of one per cent on the incomes of single people in excess of three thousand dollars, and of married people in excess of four thousand dollars. Moderate surtaxes of from one to six per cent were placed upon incomes of over twenty thousand dollars. In 19 19 the limits of exemption were placed at one thousand dollars for single persons and two thousand dollars for married people, with an additional exemption of two hundred dollars for every child. The normal rate was raised to six per cent upon the first four thousand dollars of taxable income, and to twelve per cent upon the excess above that amount. Surtaxes were made to apply to incomes in excess of five thousand dollars, and ranged from one to sixty-five per cent. The Act of 192 1 provided for a reduction of these rates as well as for an increase in exemptions. The limits of exemptions were placed at twenty-five hundred dollars for married men and heads of families having a net income of five thousand dollars or less, with an exemption of four hundred dollars for each dependent under eighteen years of age. The normal rate of tax was four per cent on the first four thousand dollars of taxable income, and eight per cent on the excess above that amount. The surtax, applicable to net incomes above six thousand dollars, was lowered so that it ranged from one to fifty per cent. The tax on cor- poration earnings was increased from ten to twelve and one-half per cent, while the maximum rates on estate taxes remained unchanged. Meeting the Increasing Cost of Government 325 The inflation of the War helped cause high profits as well as high prices. Certain industrial corporations were able to pay huge dividends and a large number The excess of individual fortunes were made. America fol- P rofits tax * lowed Europe's example and eagerly seized upon this new source of taxation. Therefore an excess profits tax was levied in 191 7, and revised in 1919. Taxation was levied at the rate of twenty per cent upon all profits in excess of eight per cent of the invested capital, and at the rate of forty per cent on profits exceeding twenty per cent of the invested capital. The combined income and excess profits taxes produced three-fifths of all the national income dur- ing war times. With the advent of peace and economic reconstruction, came falling prices and falling profits. Excess profits, therefore, dwindled as a source of taxation. Consequently the Act of 19 21 repealed the excess profits tax, as well as the transportation and so-called nuisance taxes. State and Local Taxation. — Most states are not entirely dependent upon taxation as their sole source of revenue. Highway rents, department fees, and similar items help pay for the performance of a of state number of public functions. Again, in some states the public lands have been a considerable source of revenue. Nevertheless, in 1919, the aggregate revenues of all the states showed that four-fifths of the total revenue was secured by taxation. Of all the sources of taxation, the general property tax was the most fruitful. In 19 19 it yielded forty-five per cent of the aggregate taxation receipts of the individual states. The special property taxes, including those upon corporation stock and inheri- tances, yielded about twenty per cent. Insurance and other 326 Problems of American Democracy corporations yielded fifteen per cent of the total income from taxation, and licenses upon business and other sources gave almost another fifteen per cent. A study of municipal receipts also discloses taxation as the chief source of revenue. Although a number of cities receive income from the sale of franchises, the Local sources of earnings of public service corporations and revenue. special assessments, taxation proper was found in 1918 to yield about seventy per cent of all the revenue. While the city may have its own licenses and other business taxes of a minor nature, the general property tax furnishes about sixty-five per cent of the total revenue. The smaller units of local government, such as the township and village, show a similar dependence upon the general property tax. The same is true of the county, which is an administrative unit of the state. The fact that the general property tax appears in both the state and the local rev- enues means that the receipts from this tax are generally divided between the two units of government. The actual assessment and collection may be done by either the state or the local officers of government. The general property tax, which is not used by the federal government, is thus the chief source of revenue , for the local and state governments. It includes The general ° property a tax upon both real and personal property. Real property such as land cannot be concealed, but personal property frequently can be. The efficacy of the general property tax is frequently called into question because of the ease with which owners of securities can evade the payment of this tax. There are three steps in the administration of the general property tax — the assess- ment, the fixing of the rate, and the actual collection of the Meeting the Increasing Cost of Government 327 tax. The governing body determines what the rate of taxation shall be, as, for illustration, two dollars a year upon each hundred dollars worth of property. There is a body of men known as assessors who appraise or determine the value of each piece of property. In order that the owner may suffer no injustice occasioned by a sudden fall in values, the assessment value is frequently placed at about only eighty or ninety per cent of the actual market value. The Inheritance Tax. — The inheritance taxes or death duties have become of considerable importance within the last thirty years both abroad and in America. Its nature. Since 1916 the United States has had a national inheritance tax, the rates of which were increased as the War progressed. In addition, a number of the individual states have their own inheritance taxes. The rates and other provisions vary greatly in the different common- wealths. The principle of progression, however, is com- mon to most of them. Large inheritances not only pay more than small inheritances, but the rate increases with the size of the estate. Again, a distinction is generally made between direct and collateral heirs. It is regarded as unfair to tax the inheritance of the children to as great an extent as the inheritance of more distant relatives of the deceased. Although there are possibilities of evasion, this tax provides administrative advantages. Moreover, it is contended that a tax upon legacies imposes no excessive hardship upon the fortunate recipient of the estate. By some writers the inheritance tax is regarded as a direct attack upon the rights of private property. They believe that the State should not attempt to i ts soc iai limit the extent to which an individual may S1 § mficaiice * bequeath his own possessions. On the other hand, the 328 Problems of American Democracy inheritance tax is regarded by another school of thinkers as a great democratic advance, which forces each genera- tion to stand upon its own feet. Equality of opportunity means the ability of each individual to advance to the best of his natural capacity. It is contended that the inheri- tance of colossal wealth gives to certain fortunate indi- viduals too great a start in the race of life. To that extent they are sheltered from economic competition in the struggle for existence. In this manner there is lessened the oper- ation of the principle of natural selection, which seeks to place the most naturally competent leaders in responsible positions. The adherents of this school, therefore, favor the imposition of inheritance taxes in order that the ine- qualities of past ages may not become increasingly greater with each generation. It must be remembered, however, that they do not advocate complete confiscation of the stored-up wealth of every generation. QUESTIONS FOR DISCUSSION 1. Why has the burden of taxation increased for the nation? 2. For the state and local government? 3. Explain several methods of classifying taxes. 4. Contrast the ability to -pay theory with the benefit received theory of taxation. 5. Explain the principle of progression. 6. What were Adam Smith's maxims of taxation? 7. Show the increase of federal expenditure due to the World War. 8. Show the increased federal revenue and its sources. 9. Contrast the relative importance of the tariff as a source of revenue to-day with its importance a decade ago. 10. Show how the principles of protection and revenue may conflict. n. What are excise duties? What are the principal objects of this kind of taxation? Meeting the Increasing Cost of Government 3 29 12. Trace the evolution of the income tax in the United States. 13. Explain the provisions of the income tax of 1919. Of 1921. 14. What are the principal sources of revenue for the states? 15. What are the principal sources of revenue for the cities? 16. Discuss the administration of the general property tax. 17. What arguments have been advanced for the inheritance tax? 18. Do you think such a tax fair? Why or why not? TOPICS FOR SPECIAL REPORT 1. Changes in taxation in the United States since 1913. 2. The principle of progression as illustrated by surtax rates. 3. The present income tax law of the United States. 4. Income taxes abroad. 5. History of the excess profits tax. 6. Inheritance taxes at home and abroad. 7. The defects of the general property tax. 8. Fixing the local tax rate and the assessing of properties in your community. 9. Disarmament and taxation. 10. New sources of taxation for municipalities. REFERENCES Adams, H. C. Science of Finance. Annals of the American Academy of Political and Social Science, May, 1921. Bullock, C. J. Selected Readings in Public Finance. Ely, R. T. Taxation in American States and Cities. Hamilton, W. Current Economic Problems. Plehn, C. Introduction to a Study of Public Finance. SeligmanHS. R. A. Essays in Taxation; The Income Tax. Taussig, F. W. Principles of Economics. Book VIII. West, M. The Inheritance Tax. Chapters VII and IX. CHAPTER XXVI The Distribution of the National Income I. The general process i. Meaning of distribution 2. Production and distribution 3. The law of variable proportions II. The shares in distribution 1. Rent 2. Interest: a. The demand for capital b. The supply of capital 3. Profits 4. Wages: a. Causes of differences b. Different labor groups c. Explanation of differences d. Differences within the group 5. Earned and unearned incomes The General Process. — The national income may be regarded as a flow of goods, representing wealth produced ,, . by a nation in a given time. A considerable Meaning » ° of distri- portion of this income finds its way into the bution. x J hands of the government in the form of taxes. Money is the mere medium of exchange. What the various governments desire is not the currency, but economic goods, such as armaments, roads, and school houses. A consider- able portion of the national income goes for providing for The Distribution of the National Income 331 the national defence and for other cooperative activities of government. After the taxes have been deducted, the remainder of the national income is enjoyed by the citizens of the nation. This also takes the form of a flow of goods, for which the money income has been spent. It is an obvious fact that this stream, which we call the national income, divides itself into branches of different sizes. To some individuals, it brings automobiles and fine clothing, while to others only the barest necessities of life. Later we shall discuss the extent of these differences in incomes and the resulting standards of living. At present we are attempt- ing merely to see how the system operates and to get a bird's eye view of the process of distribution. There are two primary factors in production, land and labor. Originally wealth was created by the direct appli- cation of labor to land. With the development Production of industry, a secondary factor known as capital and distn- came into existence. This has been defined as the product of past labor used for further production, and it is represented by such forms of wealth as tools and machin- ery. It is to be contrasted with what may be called con- sumption goods, that is, wealth ready for immediate enjoy- ment in the form of food, clothing, and other necessities, comforts, and luxuries of life. A final factor in production is business enterprise which brings together the three factors in production. Each of these factors gets some share in the distribution of the wealth which it has helped to produce. The share going to labor is known as wages, that to land, as rent. Business enterprisers receive profits, and the owners of capital interest. In chemistry the elements combine in some fixed pro- portions. Thus, two atoms of hydrogen, one of sulphur, 2,2,2 Problems of American Democracy and four of oxygen unite to form a molecule of sulphuric acid. The various elements in economic production, such . as land, labor, and capital, may be combined in variable varying proportions. For any known time or proportions. ... conditions there may be a given but temporary ratio, which will give the maximum production. This ratio cannot be permanent, however, for conditions of supply and demand are constantly changing. In our early history land was abundant and labor scarce. Hence, rents were low and in some cases non-existent, while wages were high. Agriculture was therefore developed extensively rather than intensively. In Europe, on the other hand, the production of food was characterized by a combination of relatively less land and more labor. Under conditions of free competition, the scarcity of any factor of production, in proportion to the need for it, determines its relative share of the national income. Thus, in a new country, rent is generally low, while wages and interest rates are higher than in older lands. The law of variable proportions may also be illustrated by combinations of labor and capital. It is frequently possible to substitute machinery for certain types of labor performed by hand. If wages are high and the interest rate low, this substitution is more apt to be made than if the reverse is true. The value in exchange of any commodity is determined by conditions of supply and demand. In a similar way, one school of economists has attempted to explain the process of distribution. The apportionment of the national income among the various factors in production depends theoretically upon their relative abundance and produc- tivity. Thus, the rate of wages, interest, or rent is a measure of the supply of labor, capital, or land in proportion to the demand for each of these factors. The Distribution of the National Income $?,$ The Shares in Distribution. — Rent is the share of the national income which goes to the owners of land for its share in the production of wealth. There is a i • i i i Rent - scarcity element in rent, because, where natural resources are abundant in proportion to the population, rent is low. Where the reverse is true, rents are high. Rent is primarily due, however, to differences in the productive capacity of the various lands. Nature has given of her fertility in varying degrees to different pieces of land. If one acre of land will yield, to the same expenditure of labor and capital, twenty dollars' worth more of wheat in a year than another acre similarly located, it will yield twenty dollars' more rent to its owners. The varying rent of mines is a similar rough measure of their different degrees of productivity. With urban land the determining feature is site value. A plot of ground upon Wall Street will bring more rent than the same size piece of ground located some distance from the financial center. The indirect or roundabout method of producing wealth is to create capital first, and then by the aid of such capital to make the finished goods. Land, labor, and ,. re capital working together have been found to be The demand far more effective than the old method of apply- ing labor directly to land. The effort, time, and material spent in the making of capital have been found well worth while. The Industrial Revolution intensified the capitalis- tic process. Goods were no longer made by hand, but by machinery. Capital came to play a more important role in production than ever before. To-day any business man will admit that capital is productive. Let us take, for ex- ample, the case of a tailor who has been pressing clothes by hand, but finally decides to install a pressing machine. He 334 Problems of American Democracy immediately discovers that, in a given time, he can easily increase the amount of work done. He is thus enabled to pay the interest on the capital he has borrowed, which is represented by the machine, and to increase his own returns. Hence we say that capital is productive. Labor is an original source of wealth, for capital is itself the product of labor applied to land. Nevertheless, labor aided by capital is far more productive than labor working alone. Interest, therefore, represents this additional productivity. The productivity of capital, or rather of labor used in a capitalistic form, explains the demand for it. Turning The supply now to the supply of capital we find that it of capital. originates by saving. The capitalistic process is roundabout and consumes time. The making of capital involves an immediate abstaining from present enjoyment. The choice must be made between reserving goods for future production or consuming them for present use. Only the latter can afford immediate enjoyment, and the creation of capital means deferring consumption from the present to the future. A nation may demand the pro- duction of luxuries, or it may be saving enough to direct production into the channels of capital. Each individual faces the same problem. He can receive his share of the national income in the form of consumption goods or in the form of capital. He may never see the capital, but he can hold in his possession a claim upon it in the form of securities or a bank deposit which pays interest. Each individual has the choice of spending his money for the immediate gratification of his \\ ants or of depositing it in a savings bank. The bank will invest the money in some productive enterprise and thus further the creation of capital. From the additional wealth created by this pro- The Distribution of the National Income 335 ductive enterprise, the bank will not only enrich itself, but it will also pay interest to its depositors. As the savings increase, that is, as the supply of capital increases in pro- portion to the demand for it, the lower will be the rate of interest. Profits may be characterized as the uncertain share in the process of distribution. They arise because of changes in prices, or in the popular demand. Every enterpriser must be a speculator to the extent of taking industrial risks. Losses balance profits. A new venture must offer an extra reward in the form of profits, or the investor will be content to accept merely the cur- rent rate of interest. The return upon bonds is an exam- ple of fixed interest, but the more uncertain returns in the form of varying dividends on stock represent profits. The share of the national income which goes to labor is known as wages. Just as land in its economic sense includes all forms of natural resources, so labor, in a w „„ . ' wages : similar sense, includes all kinds of human pro- Causes of j u ±-L -u • 1 -l. J ^ differences. ducers, whether bram workers or hand workers. The distinction between salary and wages is a social dis- tinction rather than an economic one. The return of labor is measured in terms of wages. Nevertheless we find great differences in wages, for an explanation of which under a regime of free competition we must largely turn to conditions of supply and demand. The number of competent men for certain types of work is limited, either because of a lack of natural ability or because of a lack of proper training. On the other hand, the supply of some of the lower types of labor is great. We have seen the tendency of population to grow from the bottom, that is to increase more rapidly among the lower economic groups. 336 Problems of American Democracy According to Professor Carver, wages in such occupations will therefore remain low as long as the number of workers in these groups continues to increase either by an advanc- ing birth rate or by an increasing immigration. A number of attempts have been made to classify the different kinds of labor. Professor Seager distinguishes Different between five different grades of workers, as fol- labor groups. i ows: (-,-) men having superior capacity for planning and carrying out large undertakings; (2) men competent to carry out small undertakings or to administer large commercial and industrial undertakings in sub- ordinate positions, as well as men having average pro- fessional ability; (3) men trained for mechanical or clerical labor; (4) men without special training, but possessing the required strength and endurance for manual labor; (5) men who lack the mental and physical qualities necessary for continuous labor of any kind. However, no such classi- fication can be absolute, but is merely suggestive. One group fades into the other, and there is considerable over- lapping. Again, in a democracy individuals are constantly moving up and down from one group into another. The romance of American history lies in the absence of social castes. A rail splitter becomes president, and many of the great captains of modern industry rise from the ranks. Just as there are differences in land which explain rent, so there are human differences which explain wages. The ^ , . really important question is whether these dif- Explanahon J L x of differ- f erences are the result of heredity or of environ- ences. . ....... . . ment. Are certain individuals m society "hewers of wood and drawers of water" because they are mentally incapable of doing anything else? Or, is it merely that they never received the education or inspira- The Distribution of the National Income 337 tion necesssary to do something better? Mental and physical differences between individuals will always exist, because the force of physical heredity is as enduring as life itself. Perhaps some day we may be able to measure, with a fair degree of accuracy, these inherent differences. Environment, however, as well as heredity determines these labor groups. Low wages are the result of low standards of living as well as the cause. A certain mode of life is as much a part of the social heredity, as a dark skin may be of the physical heredity. Although it is possible to overcome the former and not the latter, com- paratively few individuals succeed in rising above the social standards of their group. Social workers speak of the problem of mental inertia. A democracy must seek not only to improve the social environment, but also to extend the advantages of the public schools system. Equality of opportunity depends upon the diffusion of knowledge, which tends to eliminate as far as possible the human differences which are the result of environment. Under certain conditions, differences in wages within a group are fostered by the immobility or fixity of labor. Workers are human beings and form attach- _.„ " m Differences ments for certain communities, fellow workers, -within the and kinds of work. Change is not always easy. Therefore, within the same general group of labor there are differences of wages because the laborers do not want to move to a new place, even though they could get more money. The immobility of labor is one cause of such differences, but there are numerous other reasons. For example, regularity of employment must be considered. All other things being equal, positions which offer steady employment will pay lower wages than those which are w 33& Problems of American Democracy seasonal. The chance of promotion is another factor to be considered. Employments which are "blind alley" jobs should pay more than positions which have the possibility of advancement. Again, certain kinds of work are held in higher social esteem than others. Some men are con- tent to receive smaller salaries in order to hold " white collar" jobs. If the same grade of labor is demanded in two occupations, wages will be lower in the more pleasant or safer occupation. Again, if a long period of preparation is required, wages will be higher than when no such pre- liminary training is necessary. For this reason the physician is seldom overpaid, in spite of his brief consulta- tion with his patient. The difference in wages between men and women in the same occupations is gradually dis- appearing. The explanation of the old difference lay in the overcrowding of women into relatively fewer occu- pations. Again, they frequently had fewer dependents and usually abandoned their occupation after marriage. Of recent years there have been attempts to classify the various shares in distribution as either earned or unearned „ , ,, incomes. This influence has made itself chiefly Earned and unearned felt in the realm of taxation in the form of incomes. inheritance, super-income, and land taxes. Wages, however, are the result of one's own efforts and can therefore generally be called earned incomes. Rent is due to the superior productivity of land. Because it represents nature's part in production rather than that of man, it has been frequently designated unearned income. In profits there are both earned and unearned elements. This is true because profits may be due to the foresight, ability, or efficiency of the enterpriser, or they may be the result of risk and speculation. When profits are the The Distribution of the National Income 339 result of monopoly, they represent a distinctly anti-social and unearned income. Capital is the result of saving, and hence interest is earned by the one who does the saving. Critics of the present system, however, argue that such is frequently not the case, for it is inaccurate to speak of interest as the reward of saving in the case of those who have inherited large fortunes. Here we come face to face with the rights of private property. An individual may have labored industriously and saved patiently in order to accumulate a small fortune. Instead of spending his share of the national income in the form of consumption goods, he may have invested a large part of it in capital goods because of their future income-producing power. Shall society limit his right to bequeath this property to his children? Again, another individual may have saved his wages and invested them in land. Shall his income, therefore, be called unearned? QUESTIONS FOR DISCUSSION 1 . What is the real national income? How is it measured? 2. What is meant by the distribution of wealth? 3. What are the factors in production, and what shares in dis- tribution correspond to these factors? 4. How are these shares in distribution roughly determined? 5. Explain and criticize the so-called law of variable proportions. 6. How do you explain the existence of rent? Give causes. 7. What is capital? Give illustrations. 8. Show how the capitalistic method of production is a round- about process. 9. Show how capital is the result of saving. 10. Explain interest from the point of view of both borrower and lender. 1 1 . What do you think would be the effects of the abolition of interest by some socialistic law? 34© Problems of American Democracy 12. Differentiate between capital and consumption goods. Illustrate. 13. Do you think this distinction important? Why or why not? 14. How do you explain the various labor groups? 15. How do you explain the differences in wages between these different groups? 16. Why are wages different in different occupations within the same labor group? 17. What do you understand by earned and unearned incomes? 18. Do you think this distinction is accurate and possible? 19. Do you think it is important? Why or why not? 20. Analyze the various shares in distribution upon this basis. TOPICS FOR SPECIAL REPORT 1. Efficiency as an element in the creation of capital. 2. Monopoly as a factor in distribution. 3. The theory of interest. 4. The resemblance between the theory of rent and the theory of profits. 5. The theory of wages from the standpoint of both productivity and monopoly. 6. Government regulation of profits. 7. Laws for the prevention of usury. 8. Wages and labor unions. 9. Present movements designed to effect changes in distribution. 10. Earned and unearned incomes as applied to taxation programs. 1 1 . The inequalities of wealth. 12. Civilization and the rights of private property. REFERENCES Burch, H. R. American Economic Life, Chaps. XXXIX-XLIII. Carver, T. N. Principles of Political Economy. Carver, T. N. Essays in Social Justice. Ely, R. T. Outlines of Economics, pp. 493-524. Hobson, J. A. Work and Wealth. Seager, H. R. Principles of Economics. Taussig, F. W. Principles of Economics, Vol. II, pp. 3-43. Withers, H. The Case for Capitalism. CHAPTER XXVII Proposed Economic Reconstruction of the State I. Single tax i. Its program 2. The nature of economic rent 3. Alleged advantages 4. Objections 5. Progress of the movement II. Socialism 1. Meaning 2. Its indictment of capitalism: a. The lure of profits b. Wastes of competition. c. Inequality of wealth d. Exploitation of labor 3. The development of schools of socialism: a. Early Utopian socialists b. Revolutionary socialism c. Evolutionary socialism d. Guild socialism 4. Alleged advantages of socialism: a. Economic b. Moral 5. Its hidden dangers 6. Political strength of socialism: a. In Europe b. In England and America A number of protests have been made against the pres- ent economic system. The single taxer would have society 341 342 Problems of American Democracy appropriate rent, while the socialist would have the State eliminate the private appropriation of all shares in the distribution of wealth except wages. These theories rep- resent more radical readjustments in the apportionment of the national income than any of the recent changes in taxation that have been discussed. Single Tax. — The modern single tax movement may- be said to date from the publication of Henry George's its Progress and Poverty in 1879. The author of this program. remarkable book raises the question as to why the gaunt spectre of poverty has persistently accompanied modern progress. Why have wages tended to a mere sub- sistence level, in spite of the great inventions of the Indus- trial Revolution? Henry George finds the answer to his great question in the private ownership of land and other natural resources. He contends that the share in the national income which has gone in the form of rent to the fortunate owners of land should go to labor in the form of additional wages. His proposal is that the State appro- priate rent in the form of a tax upon land values. It is very important to remember that land in this connection means unimproved land. Buildings and other improve- ments upon land, in the form of labor and capital expended, are not to be included. At present unimproved land is actually taxed at a lower rate than improved land. But under single tax an idle piece of land would pay the same tax as an improved piece of land of the same size, fertility, or location. The value of the land itself must therefore be assessed independently of the buildings upon it, which are not taxed at all. As the State is to tax land values up to their limit, such a program means practically the end of private property in land. Proposed Economic Reconstruction of the State 343 Rent in the ordinary sense of the word includes the pay- ment for the use of the buildings upon the land as well as for the use of the land itself. Rent in its true _. 1 he nature economic sense is merely that portion of the of economic rent. commercial rent which can be ascribed to the value of the land itself. One cause of rent lies in the varying natural fertility of land. Inasmuch as this is the result of nature, and not due to the efforts of man, the single taxer asks why the fortunate owner should be permitted to appropriate, in the form of economic rent, this surplus which he has not produced. "The earth is the Lord's and the fulness thereof." The single taxer argues that the good things of nature were provided for all the children of all the people and not for the private owners. Another source of economic rent lies in the scarcity of land in certain sections. This is particularly true of cities. Compare the price of an acre of ground on Manhattan Island to-day with its price in the days of the first John Jacob Astor. As population increases and building develops, land in the central section of the city becomes more valuable. A given piece of land may remain unoccupied while the growing city is built around it. Although the owner has done nothing to increase its productivity, the sale or rental value of the land has increased enormously. Such a rise in value which is known as the "unearned increment" has been very common in growing American communities. The single taxer contends that such an increase in value is socially created, that is, it is due to the development of the entire community. Hence he advocates that society appropriate this economic rent in the form of an increased tax upon land in proportion to its increase in value. The single taxer justifies his position upon the ground 344 Problems of American Democracy that land is different from other forms of wealth, such as capital and consumption goods which are made by man. Alleged Again, land values are often socially created, that advantages. ^ ^ey are created by the whole community rather than by any single individual. With these two prem- ises as a starting point, the single taxer then attempts to point out a number of advantages in his plan. In the first place, idle land will be brought into use, for it will no longer be profitable to hold it for a rise in value. Speculation in land will disappear, while those who can utilize it to the best advantage will be enabled to do so. The breaking of the land monopoly will then increase production and inci- dentally lower the cost of living. Another alleged advant- age of the single tax is the relief of poverty. Impelled by sympathy for the lot of the poor, a burning desire led Henry George to the discovery of his theory of agrarian reform. In the last place, such a system would open an abundant source of revenue with which to meet the increas- ing expenses of government. Moreover, instead of an intri- cate and complex system of taxation, the whole field of public finance could be revolutionized by the introduction of such a simplified and unified system of taxation. On the other hand, it is of doubtful expediency to rely upon any one single tax. The expenses of government and the rent fund do not necessarily correspond. We have seen how the former, owing to the War, suddenly increased out of all proportion to the latter. In the second place, is it fair that one share in the distribution of wealth should bear the entire cost of taxation? Is rent the only unearned income? Single tax would practically mean the confiscation of the wealth represented by property rights in land. Although land values do not represent Proposed Economic Reconstruction of the State 345 individual human effort and to this extent are unearned, yet for hundreds of years society has sanctioned the private ownership of land. Savings and wages have been invested in land like any other form of wealth. Few individuals living to-day acquired land as a free gift of nature, but rather by purchase or inheritance. In the third place, administrative difficulties are urged against the single tax. Is the distinction between rent and interest, or between land and capital, a practical as well as a theoretical dis- tinction? Can an assessor distinguish between the value of a farm which is due to material qualities of the soil and the value which is due to the capital and labor expended in its cultivation? In a city, it is easier to separate the value of a building from the value of the site. The single tax movement has made considerable prog- ress in both new and old countries. Although hesitating to accept it as the only form of taxation, the „ x J 7 Progress principle of the single tax has been adopted in of the movement. New Zealand and Vancouver. In a modified form it has made headway in parts of England, Germany, and other countries. The rents, or royalties, going to the owners of the British coal mines were under fire for some time after the outbreak of the War. The appropriation by society of future "unearned increments" has been advocated in both foreign and native lands. In February, 1920, a bill was introduced into Congress which provided for a one per cent tax upon all unimproved land values in excess of ten thousand dollars. The proposed measure was aimed at the partial appropriation of economic rent to pay for a share of war expenses. Socialism. — The socialist would have society absorb not only rent, but also profits and interest. This would 346 Problems of American Democracy mean that private property rights in capital as well as in land would cease to exist. Private property rights in con- sumption goods would continue to exist, how- Meaning. ever, to a greater or less extent. Although socialists differ on this point, it is probable that an indi- vidual would be permitted to own his own home, furniture, and personal effects. He would not, however, be per- mitted to own a number of houses for his own private gain. There would be no such things as corporate stocks and bonds yielding so-called unearned incomes. Wages would be the only source of income, although most social- ists would make labor include both hand and brain workers. Production would be carried on exclusively by the State. Free competition and the individual business enterpriser would cease to exist, while their places would be taken by government monopoly and national ownership. All industries would be regarded as public utilities, and the capital would be owned and saved collectively. Such sweeping changes would seem to indicate that the socialist is completely dissatisfied with the present economic its indict- system. That such is the case is attested by his me ?} ° f bitter criticisms of the present social order. In capitalism: ^ The lure the first place he contends that, under the pres- ent stimulus of private profit, production is not carried on in the best interests of society. The goods pro- duced are often of inferior quality, and the public is defrauded. Cloth, he asserts, is often shoddy, and food adulterated. Moreover, it is contended that the present system diverts production from the making of necessities and comforts for all to the manufacture of luxuries for the rich. Economic demand, which is the indicator production follows, is determined by purchasing power rather than by Proposed Economic Reconstruction of the State 347 social desirability. Even more serious than the economic wastes are the human wastes. Industrial accidents and occupational diseases would be lessened were it not for the great race for profits. Finally, under the spur of private profits, the great natural resources are wasted and con- servation finds little place in the social system. Economic competition, as well as the motive of private profits, is regarded by the socialist as productive of waste because it results in unnecessary duplication of wastes of equipment and labor. Advertising and cross com P etitim ' freights are also among the expenses of competition. The economies of large scale production are contrasted with the expenses and wastes of small scale production. The growth of private monopoly is cited as proof of the inefficiency of the present system of free competition. Instead of having numerous corporate monopolies for the gains of private individuals, the socialist would substitute State monopolies for the good of all. In the last place, the present com- petitive system is characterized by frequent cycles of depression, which bring unemployment and loss of wages to the workers. It is contended that under a socialistic regime production would be stabilized. A third indictment of the socialist against the accepted order of things is the present inequality of wealth. Accord- ing to Dr. King of Wisconsin University in his inequality study of the wealth and income of the people of °* weaXi ' the United States, two per cent of the population own sixty per cent of the wealth, while the poorest two-thirds of the population own but one-twentieth of the entire national wealth. The country at present possesses several thousand millionaires on the one hand, and several million paupers on the other. It is contended that the very rich 348 Problems of American Democracy people cannot possibly spend their entire incomes in the gratification of their own desires. For them a large por- tion of the national income takes the form of capital goods rather than consumption goods. Hence, their wealth is a kind of trust fund, which should be administered in the best interests of society. Furthermore, the modern social- ist objects to such concentrated control of production by a few individuals, who in many cases have obtained their wealth by speculation, monopoly, or inheritance. The large share of the national income which goes to individuals in the form of profits, rent, and interest leaves Exploitation a comparatively small share for wages. Hence, of labor. t ^ j QW s t an dards of living of the workers. Yet, asserts the socialist, labor is the source of all wealth. The sole measure of value for any commodity, according to the socialist, should be the amount of labor involved in its production. Since this is not the case under the pres- ent system, the worker does not receive all that he pro- duces. Such a system of exploitation is possible only when the worker does not own the instruments of production and is forced to accept what the employer sees fit to give him. The expression "wage slavery" is sometimes used by the socialist to designate this condition of the worker. Although socialists are united in their criticisms of the present capitalistic system they differ widely among them- selves as to how the new social order should be ment of reconstructed. Indeed, so divergent are the socialism: plans of various writers that frequently there is Early Utopian little common ground except the basic principle socialists. . of collective ownership of the means of produc- tion. Modern socialism may be said to have made its first appearance as a protest against the early evils of the fac- Proposed Economic Reconstruction of the State 349 tory system. At the opening of the nineteenth century, there appeared a little group of writers who are commonly referred to as the Utopian socialists. Among the leaders were Saint-Simon and Fourier in France, and Robert Owen in England. They preached the gospel of the brotherhood of man and the dignity of labor, but were inclined to under- estimate the practical difficulties in the way of their various proposals. They are chiefly important because of their influence in starting a number of little communistic societies. Of this character, Brook Farm in New England is an illustration, which has literary as well as economic associations. Out of the Revolutions of 1830 and 1848 on the con- tinent of Europe emerged other socialistic, schemes. The ideas of Louis Blanc were supposedly put into Revolutionary practice in the short-lived public work shops of sociahsm - France. The experiment was brought to a close by the terrible "June Days," and reaction triumphed with the coup d'etat of Louis Napoleon. The real father of modern socialism was Karl Marx, whose ponderous work entitled Das Kapital has been described by his followers as the "bible of socialism.'' A German of Jewish parentage, he was exiled from his native land because of his radicalism, and he accomplished most of his work in London. Marx was an exponent of the economic interpretation of history and explained the institutions of each age in terms of the prevailing economic system. He regarded human history as an evolution from the slavery of antiquity to the serfdom of the Middle Ages, and from this medieval serfdom to the "wage slavery" of modern times. The Industrial Revo- lution, as we have seen, created a gulf between the workers and the new group of capitalists who owned the instru- 350 Problems of American Democracy ments of production. Marx believed that it was impos- sible to bridge this gulf and hence preached the doctrine of conflict or class struggle. Out of this situation was to come an inevitable social revolution, in which the workers would wrest the control of the instruments of production from the exploiting capitalists. As opposed to the revolutionary socialism there is an evolutionary socialism. This school teaches that socialism Evolutionary is not to come suddenly by the method of bloody socialism. revolution, but by a gradual process of peaceful changes. Its advocates contend that monopolies are becom- ing more and more general, and that government regu- lation is being constantly widened. The nationalization of industries, they assert, is but a step from regulation. The changing status of public utilities is pointed to for proof of this view, which further predicts that one by one the State is to take over all important industries. The leading example of evolutionary socialism is the Fabian school of English socialists, including Bernard Shaw and Sidney and Beatrice Webb. The name is taken from the Roman general Fabius, who used the policy of delay against his brilliant Carthaginian opponent, Hannibal. Another group of evolutionary socialists have been termed Christian socialists. To this group of idealists, socialism is a spiri- tual as well as an economic evolution. Although many socialists have been accused of agnosticism, this little group of thinkers rest their case upon the doctrine of the father- hood of God and the brotherhood of man. Guild socialism represents another and more recent il- lustration of the growth of socialistic cults. Under the leadership of Mr. Cole, guild socialism has found much favor among English socialists. It may be, regarded as a reaction Proposed Economic Reconstruction of the State 351 against the centralized bureaucracy of state socialism. Guild socialists claim that the factory system has robbed the worker of his freedom, and that the machine pro- Guild cess has killed the joy of workmanship, which sociatsm - lightened manufacture by hand in the days of the medieval guilds. Their cry is for self-government in industry. This could never be obtained by state socialism, which means the autocratic regulation of industries by cabinet ministers or state departments of industry. The state socialism of Germany is regarded as stifling the initiative of the indi- vidual worker. The governmental machinery of guild socialism is to be built upon the organizations of existing trades unions. Indeed, the movement has been described as an idealization and extension of trade unionism. Fore- men are to be elected by the workers, and there are to be shop committees and works committees. A national guild congress is to represent the workers of the various industries in some such way as the American Federation of Labor represents the different groups of workers in the United States. Sidney and Beatrice Webb in a recent book have attempted to sketch a constitution for their new socialistic commonwealth of Great Britain. The House of Commons is retained to represent the consumers, but the House of Lords is abolished in favor of a new national body to repre- sent organizations of producers. The divergence of the plans of the different socialists makes it difficult to generalize upon the alleged advantages and disadvantages of socialism. The gains claimed Alleged - . ,. . , , , . advantages: for it divide themselves into two groups, namely, Economic. the economic and the moral. In contrast to the present haphazard methods of production by more or less indepen- dent and competing companies, socialism offers an organ- 352 Problems of American Democracy ized system of production by the State. The advocates of this system claim that under it natural resources would be more effectively conserved, and the wastes of competition eliminated. It is probably true that duplication of plants would be avoided, and the reduction of administrative expenses accomplished. Production, also, might be redi- rected into more effective channels for the attainment of social welfare. The socialist might sum up his case as follows: more goods, better goods, cheaper goods under more desirable working conditions, with shorter hours and higher wages. An appeal is made to the claims of social justice as well as to economic advantage, for socialism would have no glaring inequalities of wealth. There would be no leisure class living in idleness, nor unemployed persons looking in vain for a means of livelihood. Another alleged moral advantage of socialism is the appeal to the spirit of cooperation, rather than to that of competition and conflict. Production for profit may foster human selfish- ness, while socialism relies upon the individual's desire to contribute to the common good. Personal ambition would no longer seek to acquire wealth, but rather the social esteem that comes through conspicuous social service. The newly fostered fraternalism would make men live like brothers in the new social order. It would transcend state boundaries and pass from nation to nation until war should be no more. Students of society may well admire the ideals of social- ism, even though they fail to see how socialism will bring its hidden them to pass. We face a condition — not a theory, dangers. an( j we jj ve j n ^g p resen t — not in some future idealized state. Are men at present so constituted that they will work except under the stimulus of necessity and Proposed Economic Reconstruction of the State 353 self interest? Do normal human beings enjoy toil for its own sake? Assuming that those members of society who do not work will not be permitted to live in such an ideal- istic commonwealth, who will apportion the tasks among the citizens of a socialistic state? Again, how will the value of a day's work be determined? If no interest is paid on capital, what inducements will there be to saving and to the accumulation of surplus wealth? Socialists have contended that saving will be done collectively, that is, the State will provide for capital goods as well as con- sumption goods. Here, again, we face a difficult problem of administration. In what manner, and by whom, will the course of production be directed? Other practical difficulties will suggest themselves to the thoughtful student. What can take the place of the genius of the American enterpriser, and how can the State bear the strain of con- ducting the giant industries? Behind the apparent plan- lessness of our economic system, there is a working mecha- nism hidden by its very complexity. Who can say what would result from its annihilation? It is safer ' to bear the ills we have than fly to others that we know not of." At present there are one or more socialist parties in every important nation. The earliest political development of socialism took place in Germany and France. Excluding Russia, the great political unknown, strength of it is still true that the strongholds of socialism Jn Euroj)e ' are upon the continent of Europe. Although Bismarck and the dethroned German emperor tried to fight the movement, it steadily grew in importance. In spite of the government's refusal to reapportion the seats in the Reichstag in accordance with changes in popula- tion, the number of socialist representatives increased. At x 354 Problems of American Democracy the close of the century, the Social-Democratic party polled two million votes and, before the War, five million votes. Although the socialist deputies had persistently refused to vote for military appropriations, they were submerged dur- ing the World War. With the revolution and the forma- tion of the present German Republic, the situation changed completely when the government came into the hands of the more conservative socialistic elements. In France there have been a number of socialist factions of varying degrees of radicalism. Before the War, the socialist vote had increased enormously, and several socialists held posts in the national cabinet. During the period of the War, in France, as in Germany and most other countries, nationalism triumphed over socialism. With the end of hostilities, there were indications that the future would show an increase of strength upon the part of the socialist parties in both France and Italy. In England socialism has been overshadowed by the Labor Party, which is largely a development of trade , unionism. Up to the present time the majority and of the labor group in America has been opposed America. . , ... . to the formation of any separate political party. In addition to the Socialist Party, however, there is a Socialist Labor Party in the United States. Although neither of these two parties has attained much numerical strength, the socialist vote in this country has increased, and a socialist member has been sent to Congress. In conclusion, it must be remembered that a good portion of the strength of the socialist movement has spent itself indirectly in the cause of social reform. To be "social- istic" does not necessarily mean that one is a socialist, believing in the collective ownership of the means of pro- Proposed Economic Reconstruction of the State 355 duction, but often merely indicates a general dissatisfac- tion with existing economic conditions. In America socialism itself is not crystallizing into any powerful, gov- erning group, but rather is its energy being dissipated by the gradual absorption of its less radical ideas into the common political consciousness. This means the slow death of the radical movement. QUESTIONS FOR DISCUSSION 1. Differentiate between economic rent and the meaning of rent as ordinarily used. 2. Why has rent been termed an unearned income? 3. What do you understand by the "unearned increment"? 4. Upon what grounds does the single taxer justify his proposal? 5. What advantages can you see in such a program? 6. Do you think that the appropriation of rent by the State would be a miscarriage of justice? Why or why not? 7. What objections can you see to the single tax? 8. How would private property rights under socialism be different from what they are at present? How different under the single tax? 9. What is the essential in any definition of socialism? 10. Upon what grounds do socialists criticize the present economic system? Which of these do you think is the strongest? 11. What does the socialist understand by "wage slavery"? 12. Do you think there is any justification for the above term? 13. Contrast revolutionary with evolutionary socialism. 14. Outline some of the leading schools of socialism. 15. What economic advantages can you see in socialism? 16. What economic disadvantages? 17. In what ways, if at all, will socialism further the cause of social justice? How? 18. Contrast the present motives to production with those under socialism. Which are the more exalted? Which the more effective? 19. What do you regard as the chief objections to socialism? 20. Sketch the progress of socialism upon the continent of Europe. 356 Problems of American Democracy 21. What is happening to socialism in England? In the United States? TOPICS FOR SPECIAL REPORT 1. Economic rent and the former Irish question. 2. The life and work of Henry George. 3. Applications of the single tax principle to-day. 4. The relation between economic rent and the law of diminishing returns. 5. Utopian socialists. 6. The life and work of Karl Marx. 7. Fabian socialists. 8. Guild socialism. 9. The state socialism of Germany. 10. Socialism in the United States. REFERENCES Cole, G. D. H. Self Government in Industry. Cole, G. D. H. Social Theory. Cole, G. D. H. Guild Socialism. Ely, R. T. Socialism and Social Reform. George, H. Progress and Poverty. Hamilton, W. Current Economic Problems. Hillquit7 M. History of Socialism in the United States, Kirkup, T. History of Socialism. Laidler, H. W. Socialism in Thought and Action. Spargo, J. Syndicalism, Industrialism and Socialism. Taussig, F. W. Principles of Economics. Withers, H. The Case for Capitalism. CHAPTER XXVIII Problems of Organized Labor I. The development of trade unionism i. Situation in Great Britain 2. Status in the United States 3. Early organizations 4. American Federation of Labor: a. Development b. Organization 5. Revolutionary unionism : a. Industrial Workers of the World b. Syndicalism II. The demands of labor 1. Causes of conflict 2. Wages 3. Hours of work: a. Fatigue in industry b. The shorter working day 4. Output 5. Collective bargaining: a. " Walking delegates " b. Open and closed shops 6. Working conditions 7. Control over industry It has already been remarked that the Industrial Revo- lution and the introduction of the factory system caused a line of cleavage between the workers and the owners of the machinery. This has been reflected not only in the 357 358 Problems of American Democracy development of socialistic movements, but also in the growth of trade unionism. Modern capitalistic organiza- tion has been attended by a parallel development of labor organization. The Development of Trade Unionism. — With the development of capitalism the worker ceased to own the Situation instruments of production and thereby lost his in Great . . • . . , "L, Britain. position of economic independence. The cap- italist had a surplus of wealth and in periods of depression could afford to wait, while often the worker could not. The helplessness of the individual worker soon brought a realiza- tion that in union there lay strength. But in Great Britain, at the opening of the nineteenth century, the prevalent economic philosophy of laissez-faire was used against the trade unions. Under the assumptions of the classical school of political economy, wages were fixed by the supply of capital available for the employment of labor. Any arbitrary interference with this natural law of supply and demand was futile. Accordingly, labor organizations were regarded as criminal conspiracies by both the common and the statute law. Labor leaders were deported or sen- tenced to prison. The statutes prohibiting labor unions were repealed in 1825, but it was not until fifty years later that they acquired an assured legal position. Trade unions now enjoy a higher degree of freedom from legal restraint in the United Kingdom than in most other coun- tries. It has been written into law that no act in connec- tion with a trade dispute, which is not criminal if committed by an individual, shall be so regarded if committed by two or more persons acting in combination. The development of labor organization in America has not been checked to any appreciable extent by legal restric- Problems of Organized Labor 359 tions. Although trade unions were, strictly speaking, com- binations in restraint of trade under the Sherman Anti- trust Law, this point was never pushed. The • ' \ m r Status in great differences in the labor legislation of the the United various states in the American Union are reflected in the problems of labor unionism. Moreover, uniformity is prevented by the overlapping activities of the federal and state governments. The vexed question of the injunction is an illustration. As in Great Britain, there has been much discussion concerning the liability of trade unions. The Clayton Act, which has amended and superseded the Sherman Act, has been called by some writers the American Magna Charta of labor. It declares that a labor union is not to be regarded as a combination in restraint of trade. Furthermore, the Clayton Act restricts the uses of the injunction in labor disputes. Some theorists have attempted to trace trade unions back to the medieval guilds; but trade unionism as we know it to-day does not appear until after the Early or- Industrial Revolution. In the days of manufac- s amzatlons - turing by hand, master workers and apprentices worked side by side in the same shop. With the development of industry in America there appeared numerous small craft unions, in the organization of which may be read something of the fraternal spirit of the guilds. Attempts at the nationalization of the labor movement had appeared before the Civil War. The early trade unionist movement in America, however, temporarily lost its identity in the gen- eral uplift and communist movements of the ante-bellum period. The great industrial development which followed the Civil War was accompanied by a reorganization of labor upon a vaster scale than was ever known before. The 360 Problems of American Democracy Noble Order of the Knights of Labor was founded by a Philadelphia tailor on Thanksgiving Day, 1869. It was at first a secret organization with a rather elaborate ritual. This was soon abandoned, and the movement spread from the garment workers to those of other trades. The ideal became that of an amalgamation of all workers into one great industrial organization. This organization was for a time very powerful and, in 1886, reached a membership of over half a million. Its government was very highly centralized, and internal dissensions arose as well as dif- ficulties with local trade unions. Although its membership and numbers rapidly waned, the Knights of Labor rep- resented a landmark in the labor movement. The American Federation of Labor was founded in 1881 and grew rather slowly during the early years of its exist- ence. At the close of the century, however, Federation there were over half a million paid members, development. and over ei g nt v trades were affiliated in the organization. During the twentieth century there was a rapid increase in membership. In 19 10 the American Federation of Labor enjoyed a membership of about two millions. At the same time, the total number of persons gainfully employed was over thirty-eight mil- lions. Hence its membership represented only about five and one-half per cent of the total industrial popula- tion. Its numerical strength and importance, however, were larger than such a proportion would seem to indicate. Labor leaders claim that, in determining such a percentage, there should be eliminated employers, clerks, salaried workers, agricultural workers, domestic servants, and other extraneous groups. Nevertheless, it remains true that the majority of workers in America are unorganized, Problems of Organized Labor 361 although the membership of the American Federation of Labor numbered over four and a half millions in 1920. The Knights of Labor was an industrial rather than a trade union, that is, it attempted an amalgamation of all workers without regard to craft. The American ' . . . Organization. Federation of Labor, on the other hand, is a rather loose confederation of a number of national trade unions. For the most part it is organized upon a craft basis, although certain powerful affiliated organizations, such as the United Mine Workers, are not so organized. The basic unit in the organization is the local trade union, which seeks to include all the workers of one craft in a given geographical district. Although these local unions are often united into a state and even into an international trade union, the national trade union may be regarded as the sovereign body. A great deal of local autonomy exists, as well as a variety of organization. At the annual convention of the American Federation of Labor each national trade union is allowed one delegate for each four thousand paid-up members or fraction thereof. Officers are elected and permanent headquarters maintained in Washington. The revenue is derived from a per capita assessment upon the membership of the affiliated bodies. Trade unions may be classified according to organiza- tion and policy. The Industrial Workers of the World affords a most unpleasant contrast to the Amer- ican Federation of Labor in both these respects, tionary Its organization is that of an industrial union Industriai ' rather than that of a trade or craft union. It Workers of the World. seeks to unite all the workers of the nation and, indeed, of the entire world into one big union. As con- trasted with the American Federation of Labor, it has 362 Problems of American Democracy made its appeal to the unskilled and immigrant workers. It employs the weapon of the general strike against the existing capitalistic system. Although the American Federation of Labor insists upon the principle of collective bargaining and resorts to the strike to gain its object, it does not seek to overthrow the existing industrial system. The Industrial Workers of the World, however, would abolish both the employer and the wage system. The pernicious practice of sabotage, or destruction of property, is openly advocated and secretly employed to gain the desired end. The origin of this term can be found in the French word meaning wooden shoe. " Dropping a monkey wrench into the machinery" is the equivalent American expression. If the demands of the worker are not acceded to, he may secretly destroy the machinery or goods of the employer. It is almost impossible to conceive of a more dastardly practice. In 191 7 the American membership in this organization numbered sixty thousand. This figure cannot be taken as authoritative, however, for the mem- bership of the Industrial Workers of the World is unstable and variable. Moreover, the force of public opinion and the strong arm of the law have developed a policy of secrecy and a resort to underground channels of activity. The Industrial Workers of the World in America cor- respond to the syndicalists of France and Italy. Between both of these movements and the Bolshevism Syndicalism. . . of Russia there are certain points of similarity. The term syndicalism comes from the French word meaning labor union. Direct action upon the part of the proletariat, or laboring class, against the bourgeoisie, or middle class, is advocated in the form of the general strike and sabotage. Syndicalism preaches class solidarity of all workers and Problems of Organized Labor 363 discards national patriotism. Indeed, it would destroy the State as we know it to-day and substitute for it the col- lective ownership of industry, with government by the workers. The Demands of Labor. — Both labor and capital are equally essential in the modern production of wealth. Instead of a close and friendly cooperation causes of between the workers and the owners of the confllct - instruments of production, unfortunately their relations have often been marked by open conflicts. Division of labor, large scale production, and the corporate form of business organization have largely eliminated the former personal relationships between employers and employees which prevailed before the Industrial Revolution. Both laborers and capitalists have at times shown a considerable ignorance of the problems faced by the other side. Self- interest is a human, not a class, characteristic. Conse- quently both sides have been guilty of frequent displays of selfishness. Of recent years, however, a number of attempts have been made to understand the problems and point of view of the opposing sides. To the student of American democracy, the interdependence of labor and capital is self-evident. Therefore, it is important to con- sider at length some of the more disturbing issues which have served to mar this harmonious relationship. One of the most common causes of industrial disputes is found in the problem of wages. Socialists have claimed that labor is the source of all wealth and have sought to convert into wages the entire stream of national income. On the other hand, conservatives contend that, unless increased wages cause increased pro- duction, they can not justly be granted at the expense of 364 Problems' of American Democracy rent, interest, or profits. Economic theories of distribu- tion give various explanations of how wages are determined. Assuming that there is a competitive rate of wages for a certain kind of labor at a given time, how can it be deter- mined? Can a labor union raise wages above that level without unjust social and economic consequences? On the other hand, it is a fact that a number of individuals and families receive wages too low to maintain a decent standard of living. The exact wage that should in fair- ness be granted to labor is a matter for careful study at any given time within any given industry. In practice, tradition and compromise are important factors. The effects of the capitalistic process upon labor are two- fold. In the first place, the invention of machinery makes possible the production of the same quantity of of work: goods, or more, in a much shorter time than under Fatigue in the old system of production by hand. Hence industry. J x J the gains of the Industrial Revolution should be reflected in a shorter working day. Again, labor is more fatiguing under modern conditions of production. Division of labor may consist of endless repetitions of the same act, so that there is not enough change to give mental variety or physical relief. Moreover, by the use of machinery it is possible to speed up the employee to his greatest exer- tion by forcing the human fingers to keep up to those of iron and steel. Under these conditions fatigue sets in early. Charts have been traced to illustrate the rise and fall of the fatigue curve. During the last few hours of continuous labor the fatigue curve is highest, and hence the greatest number of accidents occur at that time. Fatigue is physi- ological, the result of a toxin in the blood caused by con- tinuous physical or mental exertion. Rest is imperative Problems of Organized Labor 365 in order to allow nature to do the work of recuperation and to rebuild the worn out cell tissue. A greater leisure time is therefore necessary for both recreation and education. Compressor Generating Air-Power for Drills in the Coal Mines of Pa. With the development of trade unionism came the short- ening of the working day. In 1847, the British law The shorter provided a ten-hour day for women, which time wor mg ay ' gradually became the working day for men also. Although the State has determined the hours of work in the case of women and children, it has been loath to fix the minimum working day for men. Government has hesitated to inter- fere with the right of free contract in the case of those who are strong enough to take care of themselves. With the weapon of collective bargaining, however, labor unions 366 Problems of American Democracy have steadily reduced the length of the working day for men. It is not surprising to find that this varies not only in the different American states, but also among the different occupations. The length of the working day in any industry is a rough test of the strength of the labor organization concerned. Unorganized trades suffer most. For a number of years the steel industry permitted long hours of work and even double labor shifts. It is impos- sible to say definitely that any certain number of hours constitute a proper universal working day. Conditions vary in different industries, and fatigue sets in earlier in the case of the more strenuous occupations. This is another reason for the reluctance of government to fix a legal working day. The eight-hour day, however, has won legal recognition in most parts of Australia and the favor of public opinion in America. It is felt that, "Eight hours for work, eight hours for play, Eight hours for sleep, make up the full day" Restriction of output has been defended by labor unions as a counter weapon against the employers' policy of speeding up. Pace setting is done by encouraging certain men to work hard, and by occasionally paying them higher wages, in order to set a fast pace for the other workers on the same machines. The abuses of this system are common in the "sweated " industries. The employee who cannot keep up to the pace is discharged. Organized labor, however, has retaliated by trying to decide what amount of output shall constitute a day's work in any particular occupation. Thus, the laying of a certain number of bricks, and no more, may be considered as a fair day's work by the union laborer. Such a policy has been regarded Problems of Organized Labor 367 as a leveling down process, as compared with the leveling up process of pace setting. For this purpose the capacity of the poorest worker may be chosen. Again, there may be the mistaken economic philosophy of "making work". The restriction of output only apparently creates additional employment. Moreover, it raises prices and lowers the real wages of all workers. Both restriction of output and speeding up are unsocial and unfortunate policies. Human capacities and abilities differ so greatly that any fixed pace may work injustice. Another bone of contention between capital and labor may be found in the vague expression of collective bar- gaining. This may be interpreted as the making of an agreement between two groups by their bargaining : chosen representatives. Such a broad inter- "Walking delegates pretation would even include such agreements as international treaties. On the other hand, it seems almost impossible to obtain general agreement upon a specific definition of what collective bargaining in industry implies. Labor seems to interpret collective bargaining as meaning the closed shop and the right to employ "walking dele- gates." There are many employers who openly avow their belief in collective bargaining, but who refuse to treat with the professional labor leader who goes from one group to another organizing one strike after another. They declare their readiness to meet the elected representatives of their own workers, but refuse to deal with any one outside their own plant. On the other hand, labor unions claim that the principle of collective bargaining stands or falls with the right to employ a trained professional labor leader. It is held that no employee would dare to organize his fellow employees for a strike, or for advancing their 368 Problems of American Democracy claims against those of the employer, because of the risk involved in such an undertaking. The open shop is one in which both union and non-union men may be employed without discrimination. The closed open and shop is one in which only union men are era- dosed shops. pi oye( L if tne employer agrees to take on union men only, it makes him virtually dependent upon the unions for the choice of his workers. Moreover, his power of discharge is similarly limited. The closed shop approximates a labor monoply and gives the union great power over wages, hours, output, and general working conditions. In a recent national conference between labor and capital, a split occurred upon the interpretation of collective bargaining, which labor held implied the closed shop. The American Federation of Labor endorses the closed shop as one of its policies, while the National Association of Manufacturers tries to further the extension of the open shop. Many of the evils of unsanitary and dangerous working conditions may be limited by prohibitory legislation. Later Working ' chapters will discuss such problems as dangerous conditions, trades, industrial risks, and the competition of non-union labor. Trade unions have, however, often brought pressure to bear in favor of social legislation. On the other hand, they have often been so engrossed in the discussion of wages and hours of work that compara- tively little attention has been paid to general working conditions. The legislative restrictions of the different states concerning them are often more the work of humani- tarians than of labor leaders. A new phase of the problem of organized labor is the desire of the workers to participate in the management of Problems of Organized Labor 369 industry. Guild socialism illustrates the theory of the self- governing work shop. At the conclusion of the World War a plan was presented in Congress by which the railroad workers might take over the operation over industry. of the national railroad system. This failed, however, to meet with popular approval. But in England there has been a long and strenuous effort on the part of the mine workers to secure the nationalization of the mines. Although the problem of control, or partici- pation in the control of industry, has not been of great importance in the past history of labor movements, it promises to be one of the great questions of the future. QUESTIONS FOR DISCUSSION 1. What disadvantages does the individual worker have in bar- gaining? 2. What was the early attitude toward labor unions in Great Britain? 3. What is the present attitude toward labor in that country? 4. Sketch the early development of trade unions in America. 5. Contrast an industrial with a craft union. 6. Explain the organization of the American Federation of Labor. 7. Trace its gradual development. 8. What proportion of American workers is organized? 9. Compare the Industrial Workers of the World with the American Federation of Labor. 10. What is revolutionary unionism? Give some examples. 11. Give the chief reasons for the conflict of interests between labor and capital. 12. Why has the working day become shorter since the Industrial Revolution? 13. Explain pace setting and the restriction of output. 14. What do you understand by collective bargaining? 15. Upon what does it depend? 16. Do you believe in "walking delegates"? Why or why not? Y 370 Problems of American Democracy 17. What have labor unions actually accomplished in this country? 18. How can labor unions increase wages? 19. Can wages be increased without decreasing the other shares of distribution? 20. Why should the working day be shorter now than formerly? 21. How much has the labor union done to improve working conditions? TOPICS FOR SPECIAL REPORT 1 . The Knights of Labor. 2. The Clayton Act and its effect upon organized labor. 3. The organization and workings of some trade union in your community. 4. The evolution of the eight-hour day. 5. The open versus the closed shop. 6. Syndicalism in Europe. 7. The soviet idea in Russia. 8. The present labor situation in England. 9. A comparison of the labor movement abroad and in America. 10. Instances of the participation of labor in the management of industry in America. REFERENCES Carlton, F. T. History and Problems of Organized Labor. Ely, R. T. The Labor Movement in America. Hamilton, W. Current Economic Problems. Hoxie, R. F. Trade Unionism. Mitchell, J. Organized Labor. Seager, H. R v Principles of Economics. Taussig, F. W. Principles of Economics. Webb, S. and B. History of Trade Unionism. CHAPTER XXIX The Cooperation of Labor and Capital I. Weapons of industrial conflict i. Boycotts and blacklists 2. Strikes and lockouts 3. Use of the injunction II. Social cost of industrial conflict 1 . To the employer 2. To the worker 3 . To the public III. The promotion of industrial peace 1 . Commissions on industrial relations : a. Their origin b. Effect of World War 2. Compulsory arbitration : a. New Zealand b. Kansas Court of Industrial Relations 3. Shop committees: a. The Whitley plan b. Other examples 4. Profit sharing: a. A common form b. Other methods IV. The cooperative movement 1. Its origin 2. Success in Europe 3. Situation in the United States 4. Conclusion 372 Problems of American Democracy Another problem of American democracy is the recon- ciliation of the apparently conflicting interests of labor and capital. With the growth of labor unions there has gone on the development of employers' associations. Labor disputes, like those of international polity, admit of two methods of settlement. On the one hand, there may be an appeal to force or a resort to industrial conflict. On the other hand, there may be an appeal to reason, or an adjustment by arbitration and compromise. Industrial as well as military wars entail an enormous loss to productive societies. Weapons of Industrial Conflict. — A boycott is the organized refusal of a number of persons to purchase goods from certain individual producers or corporations . and It may be used by the general public as a revolt blacklists against monopoly price. On the other hand, it may be used by a group of workers or by a trade union in order to bring an employer to their terms by checking his sales and profits. The boycott may be positive as well as negative. It may take the form of patronizing only those manufacturers who are sympathetic toward labor. Furthermore, workers may be urged to buy only union- made articles. Again, the Consumers' League publishes a "white list" containing the names of the firms which do not violate factory laws or employ child labor. The black list is a counter weapon, which the employers can use against the boycott of the employees. Employers may list the names of former workers who have become objection- able because of union activities or for some other causes. Such men may 'also be refused employment by other employers. Both strikes and lockouts mean an organized cessation The Cooperation of Labor and Capital 373 of work. The causes and effects of these may be the same ; but in the first case, the initiative is taken by the workers and, in the latter case, by the employers. When strikes and the agreement is made by the individual and not lockouts - by the process of collective bargaining, such a situation is impossible. Labor leaders have vigorously defended the right to strike and have attributed many of the gains of A Mob of Strikers labor to this weapon. The local union regularly collects dues in order to pay strike benefits during such crises. The various employers' associations also have funds with which to fight strikes. Frequently the capitalist is in a much better position than the laborer to wait and suffer the losses of unproductive idleness. If the employer does not care to shut down his plant, he is forced to employ non-union men. 374 Problems of American Democracy Strike breakers may be imported on a considerable scale, although they are derided as "scabs" by the strikers and their sympathizers. Picketing is an attempt of the strikers to intercept the other workers and to get them to quit their positions. It may take the form of persuasion, but fre- quently the practice leads to intimidation and to acts of violence. Another weapon of the employer is the injunction. This is an order from the court to do, or to cease from doing, "Use of the some* particular thing. Any one who violates injunction. suc \ i an or( j er becomes guilty of contempt of court and can be punished without recourse to the usual cumbersome judicial routine. The injunction is designed to permit quick action against something which threatens to result in irremediable damage. Although some specific act may be mentioned, "blanket" injunctions have some- times been issued. Labor resents the frequent use by the courts of this emergency power. Social Cost of Industrial Conflict. — Even assuming that the strike is attended by no loss of property upon the To the part of the employer, the cessation of production emp oyer. ^ oes no t mean the cessation of expenses. Finan- cial losses take the place of profits. Moreover, the loss may be more or less permanent, because former customers may have formed the habit of purchasing elsewhere. Thus, in 1902, during the great anthracite coal strike a number of manufacturers had new furnaces installed in order that they might burn bituminous coal. After the strike, they continued the consumption of soft coal. Even if the employer does emerge victorious from the strike, his staff of regular employees is shattered. A number of his best workmen have gone elsewhere. The Cooperation of Labor and Capital 375 If this strike is protracted, it may be nothing less than a calamity to the worker and his family. The strike benefits provided by the union are a very slim and pre- to the carious source of revenue. Past savings are worker - soon used up in providing for the present needs of this period of enforced idleness. If the strike is successful, the worker may be repaid in the form of increased wages. If the strike is unsuccessful, he may suffer not only financial loss but also possible loss of employment. The public is affected in many ways by a strike. The most obvious effect is in the curtailing of production. Considerable hardship may be suffered if the To the commodity or service produced is essential. public - Moreover, when the wheels of production again revolve, the consumer may find that the price of the goods has been raised to pay for the losses of the strike, or for the increase in wages granted. Finally, the general spirit of violence may lead to the destruction of property, if not of human lives. Crime and poverty rates for the affected locality show an increase during such industrial crises. A spirit of class bitterness is engendered, which may continue long after the causes of the dispute have been forgotten. The Promotion of Industrial Peace. — From May to October, 1902, the country suffered severely from the effects of a strike of the anthracite miners in „ Commis- Pennsylvania. Finallv, President Roosevelt sions ° n industrial threw aside precedent and appointed the famous relations : Anthracite Coal Strike Commission. Both sides Their origin - agreed to accept the final verdict, and the miners went back to work. A great wave of popular approval showed that the time was ripe for government action of some sort to facilitate better industrial relations in essential indus- 376 Problems of American Democracy tries. At present, most of the individual states have passed laws which provide various opportunities for industrial conciliation or arbitration. These may take the form of permanent state boards or commissions upon industrial relations, or they may provide for the appointment of such commissions temporarily for the duration of an industrial conflict. The World War gave this whole movement a new impetus, for the cooperation of labor and capital became imperative. Effect of It was evident that strikes and lockouts would World War. p reven t or delay the successful conclusion of the war. A War Labor Conference Board was appointed and had its first sitting in February, 191 8. It consisted of five members representing the employers of the nation, nominated by the National Industrial Conference, five rep- resentatives of organized labor, nominated by the American Federation of Labor, and two other members. This body was continued in the National War Labor Board, which tried to harmonize the interests of employers and employees during the War. After the armistice, this body ceased to function and President Wilson called a National Industrial Conference in Washington, October, 19 19. This was a three-fold body, representing labor, employers, and the general public. A steel strike was then in progress, and the conference was ended by the abrupt withdrawal of the labor group after it had failed to secure acceptance of its interpretation of collective bargaining. With the return of the railroads to private ownership, provision was made for the Federal Labor Board. In a previous chapter, its three- fold composition has been described. Compulsory arbitration is one way out of industrial, as well as of military, conflicts. The pioneer in this field The Cooperation of Labor and Capital 377 was New Zealand, which passed a law in 1894 that made strikes and lockouts misdemeanors. Employers, as well as employees, are organized into what are known as " industrial unions." In case of an industrial sory arbi- dispute either side may ask for the intervention ^^zeaiand of special officers, who are known as commis- sioners of conciliation, three of whom are appointed by the governor for the whole country. One of these commissioners proceeds to the scene of the dispute and tries to effect a settlement. If his individual efforts are unsuccessful, he then organizes a council of conciliation, composed of an equal number of representatives from both sides. If either side refuses to accept the decision of this body, a final appeal is made to the central court of arbitration. The presiding officer is a judge of the supreme court, and the other two members are appointed by the governor to represent both sides of the controversy. This court is a very important tribunal and has power to examine a company's books and to subpoena witnesses. There is no appeal from its award, which becomes binding upon both parties for a specified length of time. Indeed, the award may be extended to embrace other trades in the same locality or throughout the country. An attempt to change the conditions by a strike or lockout is a serious and punishable misdemeanor. In January, 1920, the legislature of the state of Kansas passed an act providing for compulsory arbitration in indus- trial disputes affecting public interest. The act establishes a Court of Industrial Relations, which courtlf can decide disputes in the case of vital industries, ^iatiom. If necessary, it can take control of the industries where the rulings of the court are not obeyed. A group of individuals may stop work, but concerted action in the 378 Problems of American Democracy form of an organized strike to hinder the operation of such an industry is unlawful. The three members of this court are chosen by the governor of the state. Although this law has been bitterly attacked by organized labor, the experi- ment is being watched with great interest by its advocates in other states. It articulates the new feeling that the public has certain rights in an industrial conflict, which can no longer be construed as " a private war between capital and labor." The War brought home to Great Britain also the neces- sity for a closer cooperation between capital and labor. A committee of Parliament drew up what was mittees: known as the Whitley plan. This provides not l pian hy on ly ^ or na -tional joint industrial councils of employers and employees in the different trades, but also for district and workshop committees. In each case the council is composed of an equal number of representa- tives of the employers and employees, with an impartial chairman. The Colorado Industrial Plan, adopted some time ago by several Rockefeller interests, is somewhat similar to the English plan. Representatives are chosen by secret ballot from among the employees of each plant. Joint committees of the representatives and an equal number of the officers of the company are organized in each plant. As recently as 19 10 the Hart, Schaffner and Marx Com- pany formulated a plan for industrial conciliation and arbi- other tration in connection with the United Garment exampes. Workers. When a grievance arises, the worker reports the fact to his representative who takes up the matter with the shop superintendent. If the matter is not settled, it can be carried before a pair of delegates who represent both the employer and the employee. The final The Cooperation of Labor and Capital 379 authority resides in the Trade Board which consists of eleven members, all of whom except the chairman must be in the employ of the company. Of this number five are selected by the company and five by the employees. Numer- ous other illustrations may be found of the democratic organization of modern industry, and of the participation by the workers in its control. Details of organization differ, but there are two general characteristics. In the first place, as contrasted with governmental commissions, this is a movement from the bottom up, not superimposed from above. In the second place, there is a greater chance to observe industrial difficulties and to check them before the situation becomes serious. It is especially true in the case of industrial conflict that " an ounce of prevention is worth a pound of cure." In the case of the White Motor Company and the Browning Company of Cleveland, not only has the shop committee been introduced, but also the prin- ciple of profit sharing. In the case of the latter sharing: company, profits are shared every three months, £"™ wow and the percentage allowed each worker increases with his length of service. The company's balance sheet is placed in the hands of the shop committee for consideration and discussion. The integrity of the officers of the company is unquestioned by the employees. Indeed, confidence and fair play are essential in any plan of shop management or profit sharing. The purpose of profit sharing is to give the employee an added incentive to efficient production. The most common arrangement has been what is known as the sliding scale of wages with a standard minimum wage. The percentage of profit that an employee is to share is determined in advance, but the actual payment is not 380 Problems of American Democracy made until sometime afterward when the books have been settled. The sliding scale of wages is generally deter- mined by the price of the product. Such an arrangement does not always work well, however, for profits do not always vary directly with prices. Some employers have attempted to share all the returns with the employees. Such a scheme has not been found other to work well, for while the employees are willing methods. tQ g^g j-j^ p ron t Sj they are usually not willing or able to share the losses. A smaller degree of profit shar- ing for the employee, coupled with the guarantee of a minimum wage, has been found to be a more workable compromise. Profit sharing may take the form of an issue of stock as well as the payment of money wages. This has been practiced for a number of years by the John B. Stetson Hat Company of Philadelphia. Another form of profit sharing can be found in France, where sometimes a certain proportion of the profits is placed in an insurance fund for the protection of the employees against ill health or old age. In 19 14 the Ford Motor Company announced its intention to distribute annually ten million dollars to its workers in addition to their usual wages. Such schemes of profit shar- ing promise much for the future. At present, they have been worked out to a limited extent in the case of the skilled industries, and only with successful companies. As the degree of profit shared depends somewhat upon the employee's length of service, the effect of the plan is to diminish the great labor turnover. Profit sharingmakes little appeal to the roving and mobile group of laborers. The Cooperative Movement. — Labor copartnership or cooperation goes a step further than profit sharing and attempts to dispense with the employer and to absorb private The Cooperation of Labor and Capital 381 profits entirely. The movement may be said to date from 1844, when the famous Rochdale Cooperative Store was founded by twenty-eight pioneers. The plan devised by this little group of flannel weavers became the model for thousands of similar cooperative stores in all parts of the world. The capital necessary for the undertaking was subscribed in small shares by pro- spective purchasers. A fixed rate of five per cent was to be paid on this capital before any profits should be declared. Democracy of management is illustrated in the cooperative plan by the accepted principle of one person, one vote. The prices charged for goods in the cooperative stores are the current prices of the locality. At the end of a quarter profits are computed over and above the expenses of management and the interest upon the capital stock. The surplus is divided among the stockholders in propor- tion to the purchases made and not according to the amount of stock held. From a very small beginning the Rochdale Cooperative Stores have grown to be a great enterprise. They have increased enormously in numbers, membership, success in capital invested, and in their scope of work. It Eur °P e - is a notable fact that the British cooperative stores can secure upon their managing committees men of sufficient business ability to make the scheme a success. Cooper- ative retail stores were followed by cooperative wholesale societies. This was begun in 1864 and its success was almost immediate. From buying its goods wholesale from manufacturers, the society soon passed into the stage where it could do its own manufacturing. It now manu- factures food products, shoes, clothing, and it even owns its own ships and tea plantations in Ceylon. The English 382 Problems of American Democracy Cooperative Wholesale Society was followed a few years later by one in Scotland which has been equally successful. In Denmark, the dairy farmers have organized cooperative creameries, while in Germany cooperative banking has had its highest development. In no other country has cooperation among consumers been carried so far as in Great Britain, and in no other country has it been so little advanced as in the in United United States. The better organization of retail States. . ..... business in American cities has militated against the cooperative stores movement. Again, a less homoge- neous and settled population has been another factor in the situation. Finally, the higher wages of American workmen have not made economical consumption so imperative as in Europe. With the increased cost of living, however, and the advent of war-time profiteering, a considerable impetus was given to the cooperative movement in Amer- ica. But perhaps the most serious drawback to this move- ment in America is the failure of cooperation in the field of production. It is here that the United States has most signally failed. In concluding our discussion of the cooperative relations that should exist in general between labor and capital, it is well to bear in mind the words of Theodore Conclusion. 1 1 it t<- Roosevelt, whose whole life exemplified a passion for social justice. Let him speak for himself: "In our industrial activities, alike of farmer, wageworker, and business man, our aim should be cooperation among our- selves and control by the State to the degree necessary, but not beyond the degree necessary, in order to prevent tyranny and yet to encourage and reward individual merit." The Cooperation of Labor and Capital 383 QUESTIONS FOR DISCUSSION 1. Review some of the principal causes of industrial disputes. 2. In what ways may they be settled? 3 . Explain some of the weapons of the employer. 4. Explain some of the weapons of the employee. 5. Illustrate some of the evil consequences of strikes. 6. Show the cost to both employer and employee. 7. Show the advantages of industrial cooperation over industrial conflict. 8. Show how capital and labor are mutually dependent. 9. Name some of the commissions of the federal government upon industrial relations. Explain the functions of each. 10. Explain the compulsory arbitration plan of New Zealand, n. What has been done along this line in the United States? 12. Explain the Colorado Industrial Plan. 13. What are the advantages of shop committees? 14. What are the advantages of profit sharing? 15. What is the most common method of sharing profits? 16. Explain some other forms of profit sharing. 17. What limits do you see to the extension of the principle of profit sharing? 18. Explain the Rochdale Cooperative Stores. 19. Where has the movement reached its greatest success? 20. Why has not the cooperative movement made greater progress in the United States? TOPICS FOR SPECIAL REPORT 1. The use of the injunction in labor disputes. 2. The social cost of a recent strike. 3. The National War Labor Board. 4. The Kansas Court of Industrial Relations. 5. The Whitley Plan of Great Britain. 6. Plans of employees' representation in organizations with which you are familiar. 7. Concrete illustrations of profit sharing in your community. 8. Examples of Roosevelt's attitude toward labor and capital. 9. The Adamson Act and its method. 384 Problems of American Democracy 10. The present attitude of government toward labor and capital in America. REFERENCES Carlton, F. C. History and Problems of Organized Labor. Fay, C. F. Cooperation at Home and Abroad. Gilman, N. P. Profit Sharing. Gilman, N. P. A Dividend to Labor. Hamilton, W. Current Economic Problems. Schloss, D. F. Methods of Industrial Remuneration, Taussig, F. W. Principles of Economics. Webb, C. Industrial Cooperation. CHAPTER XXX The Conservation of Labor I. The early situation in England i. Social effects of the Industrial Revolution 2. Parliamentary legislation II. Child labor in the United States i. History and extent 2. Causes and remedies 3. The effects 4. Recent legislation 5. A model law III. Women in industry 1. Resemblance to child labor 2. The sweat shop 3. Low wages 4. New occupations IV. Welfare work 1. Meaning 2. Illustrations A consideration of the problem of the conservation of human labor reveals a number of maladjustments — economic, social, and political — in American democracy. The exploitation of women and children in industry, the sweat shop, low wages, dangerous occupations, and unem- ployment are phenomena illustrating lack of adjustment in human society. The economic and social effects of such conditions are reflected in low standards of living, in indus- trial accidents, and in general economic and social dis- Z 385 386 Problems of American Democracy content. The political phase of the problem is summed up in the word "regulation." Government regulation of cer- tain industrial conditions is essential to the preservation of many workers from physical, as well as social, degeneracy. The Early Situation in England. — The early social effects of the Industrial Revolution upon England were alarming. The first factories were unhealthful effects of and the housing conditions equally bad. Hours Revolution. °f l a b° r were so long that a working day of twelve, thirteen, and fourteen hours was not unusual. Great evils due to child labor and women in indus- try sprang into existence. Children were sent into the factories by their parents at the age of eight and indeed younger. Pauper children from the poor houses were bound over to the manufacturers into a virtual slavery. They were given food of the coarsest description, often eaten while the machinery was in motion. The children were abused and driven to their work which lasted twelve hours a day. Accidents were frequent, disease common, and the excessive toil often put an early end to their unhappy lot. In the mines equally bad conditions were found by an investigating committee. Women and men worked side by side almost naked in the damp unwhole- some shafts of the mine. A part of the work of the smaller women and children was to drag carts of coal through the underground passages frequently three feet or less in height. Little girls carried a halfhundred weight of coal up steep ladders to the surface. A mere recital of this testimony before Parliament made unnecessary any dis- cussion of the desirability of reform in mining conditions. But in spite of the real dangers of the new industrial conditions, England was rather loath to pass social legisla- The Conservation of Labor 387 tion for their betterment. The laissez-faire theory of government was popular. It held that government regula- tion of industrial conditions would interfere with _, ,. Parhamen- England's industrial supremacy. This attitude tary legis- was consistent with the national policy of free trade and the repeal of the corn laws. Greedy manufac- turers prophesied disaster if they should be deprived of their supply of female labor. But the fear of physical degeneracy of the workers at length made government action imperative. A famous factory law was passed the year following the Great Reform Bill of 1832. No chil- dren under nine years of age were to be employed, and those from nine to thirteen were to work only eight hours a day. Young persons from thirteen to eighteen were not to work over twelve hours, and none of these at night. A corps of inspectors was created, and factory regulation became a reality. A subsequent act of 1847 limited the work of women to ten hours a day. Since it was unprofit- able to work the factories by men alone, without the aid of women and children, a ten-hour day gradually became the common standard for all. In 1842 a law had already been passed regulating labor in mines. It prohibited all underground work by females and by boys under thirteen. In recent years the British Parliament has passed other factory laws, and the new era of government regulation has been strikingly characterized by an increasing amount of social and humanitarian legislation. Child Labor in the United States. — The early effects of the factory system in America somewhat resembled the conditions already described in England. History Although the opening of our mines was not and extent - attended by such horrors as prevailed in the Old World, 3 88 Problems of American Democracy the early situation in the textile mills was reprehensible. In New England, where manufacturing began, children under sixteen often worked twelve, thirteen, and fourteen hours a day. The first important legislation upon child labor in this country was passed by Massachusetts in 1836. More stringent laws were subsequently enacted, and other states followed her ex- ample. But America labors under a peculiar disadvantage in securing such legislation. Many social questions, which in Europe are matters of national legislation, in our own country fall within the sphere of state action. Hence great variations occur in the realm of laws dealing with child labor, women in industry, and like problems. The action of the federal govern- ment in such matters can be obtained only by a constitutional amendment, or by a liberal interpretation of its control over interstate commerce. At present, therefore, the child labor situation varies with the different laws of the different states. New England, which in this regard formerly held an unenviable reputation, has now by appro- priate legislation materially improved the child labor A Breaker Boy The Conservation of Labor 389 situation. With the growth of an industrial South, this evil has appeared in the southern cotton mills to an alarm- ing extent. Much of the cotton is also picked by child labor. In several southern states the National Child Labor Committee estimates that half of the children between ten and thirteen years of age in that section may A Child Carrying a Man's Load be classified as wage earners. A large proportion of child labor is used in agriculture, but this is not considered so harmful in its physical effects as life in the mill. Many children in country regions leave school, temporarily or permanently, for the occupation of fruit and berry-picking. Many are also at work, legally or illegally, in the great canneries of the South and Middle States. 390 Problems of American Democracy The introduction of machinery and the minute sub- division of labor accompanying the factory system lessen Causes and the need for the skilled artisan. Little strength remedies. an( j intelligence are required to feed and attend many machines in the modern factory. Hence the labor of children will often suffice in modern industrial life. As compared with that of men, such labor is cheap and plenti- ful, and it is therefore, necessary to enact special legisla- tion in order to protect such workers, who often fall a prey to the thoughtless or selfish employer. An indifferent public is a second factor in the child Jabor problem. Cheap goods will sell in spite of the fact that such cheapness is often secured at the price of the child's health and welfare. The Consumers' League has done much in a campaign of popular education to inform the public concerning the social cost of such production. It has an honor list of industrial firms, whose working conditions are good, and whose patronage is worthy of public 'approval. The Christmas slogan of "Shop early" has accomplished much good for the young men and women employed in depart- ment stores. A third factor in the problem is the neces- sity for self-support. Poverty is one cause of child labor because the child's small wages are often needed to sup- plement the family income. Again, the child himself may be glad to leave school because it does not appeal to him. It is often far removed from practical life, and the discipline is irksome. Later, this short-sighted policy will be apparent, when the child who has remained in school forges ahead of those who leave before the course is- completed. It is perfectly true, however, that the modern school should provide a curriculum sufficiently diversified to appeal to the needs of all classes of children. The Conservation of Labor 391 The effects of child labor are injurious to the child, to society, and to industry. Even under the most favorable working conditions, such labor is highly injurious The from the physical point of view. Childhood is e ects ' the period of physical growth requiring an abundance of fresh air, freedom, and activity. It is also the period of mental growth and development. The monotony of repeated operations of the same character is a poor sub- stitute for self-expression and intellectual training. Again, in the factory the moral atmosphere of the child's sur- roundings is frequently bad, and he becomes acquainted with many existing evils before the age of innocent child- hood has passed. In the second place, child labor has injurious effects upon society. It tends to break up family life by taking the child out of his normal place in the home. The young wage earner very quickly tends to become independent of parental authority. His opportunity to rise is limited, and he becomes accus- tomed to low wages and standards. It is also well to remember that this army of child laborers will become the fathers and mothers of the next generation, and that they are not receiving proper training for their future in society. Finally, a word should be said of the effect of this problem upon industry. Child labor in the long run is not always the cheapest labor. It lowers the efriciency of the worker, for, generally speaking, every dollar earned before the age of fourteen is taken from later earning capacity. Moreover, the labor of children is waste- ful. They are unreliable and their carelessness is a frequent cause of accidents. Most of our recent child labor laws have been passed since 1895. A National Child Labor Committee, organized in 392 Problems of American Democracy 1904, has urged reform in many states and suggested model laws for enactment. Since each state enacts its own laws, Recent the employers affected by the proposed legisla- legisiation. ^ Qn tnreaten to rem ove their plants to other states. New York and Illinois have excellent child labor laws, while the Pennsylvania legislature in 19 15 passed a law decidedly improving the child labor situation in that state. A happy augury for the future is found in the recent creation of a Federal Child Labor Bureau. A model child labor law must not only be clear and dis- tinct in language, but must also provide an effective machinery for the enforcement of its provisions. A sal- aried corps of inspectors should be created with power to prosecute violations of the law. While many employers seek to cooperate in enforcing the law, others have been guilty of evasion It is generally agreed that a model child labor law should cover certain well-defined points. The maximum working A model day should be one of eight hours, instead of ten, * as found in some states. Night work should also be prohibited, and a closing hour fixed. The minimum age at which the child is permitted to work should be fourteen. Some states still have a limit of twelve years of age, and certain southern states make an exception even to this age in the case of children of pauper parents. Children between the ages of fourteen and sixteen should have duly signed working papers. The state laws on child labor should be correlated with those upon compulsory education. No children should be permitted to enter what are called the "dangerous trades," and these should be specified in the law. Women in Industry. — Women as well as children The Conservation of Labor 393 394 Problems of American Democracy became workers under the new factory system. The economic causes of both problems are much the same and their effects quite similar, although women, under biance to the domestic system, always performed consider- able industrial labor. For physical reasons the efficiency of woman is sometimes not so high as that of man; while her health and vitality are often seriously impaired through the strain of industry. From the stand- point of society the effect upon family life may be equally bad, especially in the case of mothers forced to leave small children. The secondary function of the family is that of socialization, or the preparation of children for the larger life of society. This cannot be accomplished in a dis- rupted family life. However, woman cannot be denied her right to independence and self-support, for this move- ment is but a part of the larger field of equality into which she has entered. Nevertheless, it is necessary to protect her in the exercise of this new freedom. Therefore laws have been passed to regulate the industries into which she may enter, so that her surroundings may be healthful and sanitary. There exists, however, as great a discrepancy in the various laws of the different states upon these mat- ters as upon child labor. The number of women employed is very high in the manufacturing states of our North Atlantic section and also in parts of the South. At the present time, there is a total of approximately eight million women engaged in various industries in the United States. Not only has the total number of women in industry increased, but also the proportion to the total population has advanced. Because many of those concerned are women, a word may be said here concerning the sweat shop system. This The Conservation of Labor 395 phenomenon is found principally in large congested cities, and especially in the clothing industry located in these centers. The cloth, after being cut for gar- The sweat ments in the principal establishments, is dis- s op ' tributed to various small shops and private houses in the neighborhood. Here men, women, and children make the finished garment. Employment is irregular, and wages are A Typical Sweat Shop determined by the "sweater," who takes advantage of the immigrant, the aged, the children, the inexperienced, and those in dire need. Hours of labor are long in the busy season, and the surroundings where the work is done are often detrimental to the health of the worker. Factory laws are vain against these abuses, because the sweat shop may often be located in the home of the individual. 396 Problems of American Democracy In most occupations the wages of women are much lower than those of men. Therefore many women have raised the cry of "equal pay for equal work." Low wages. However, since most women have only them- selves to support or simply the family income to sup- plement, they have been able to subsist on lower wages. Again, competition with women has resulted in a lowering of the wages of men. To supplement the income other members of the family have sought gainful occupations. Hence many argue that this whole movement is that of a circle, with nothing gained in the end. They, therefore, look with disfavor upon the entrance of women into busi- ness and industrial life. Certain special investigations have shown that, in some industries, the wages of women are criminally low. The wage allowed precludes any possi- bility of maintaining a decent standard of living for those women who must support themselves. The result is bad housing, insufficient food and clothing, and little, if any, means of recreation. Hence, several states have passed minimum wage laws which fix the lowest wage that may be paid woman workers in certain employments. Massa- chusetts led this movement in 191 2. It would seem that the state can best protect women from exploitation by refusing to permit them to work for a wage insufficient to maintain a decent standard of living. Women's labor organizations can, of course, accomplish the same purpose. The occupations of women may be grouped under the following heads: (1) domestic service; (2) agriculture; New occu- (3) industry; (4) commerce and business; (5) pations. professional life. Domestic service employs a large number of women, but has been exempted from many laws dealing with women in industry. Although American The Conservation of Labor 397 women have not engaged in agriculture to any great extent, immigrants from Europe sometimes pick fruit and berries. In the South a large part of the cotton crop is picked by colored women. The great change, however, has come in the last three groups of occupations. We have seen the entrance of women into industry and have noted its causes and effects. Of more recent years women have invaded commerce, business, and the professions. Formerly the only profession open to women was that of teaching. The great universities, however, have now begun to open wide their doors to women who desire to study law or medicine or the new profession of social ser- vice. Formerly, women were rarely seen in the mercan- tile pursuits, but now they are often found taking the places of men as clerks, stenographers, and saleswomen. Since the age of marriage has advanced, women have utilized such positions in order to provide for themselves a means of support. Many women desire the economic inde- pendence secured through a professional or business career. In most cases, however, women are simply "loaned" to industry and eventually find a rightful place in the home. Welfare Work. — To-day it is a far cry from the welfare work of a modern business house to the factory conditions of a century ago. During the past generation, i r i r • e 1 t Meaning. the conception of the functions of the employer has widened far beyond the mere matter of economic production. He is regarded as having social responsi- bilities to the employee, as well as to the general public. The employment of large numbers of women and children has stimulated welfare work within the factory and depart- ment store. It can be well defined in the words of Pro- fessor Commons as "all those services which an employer 398 Problems of American Democracy may render to his work people over and above the pay- ment of wages." Labor, however, has not always taken a sympathetic attitude toward such a program which it has stigmatized as capitalistic feudalism. It is even sometimes said that welfare work is done for advertising purposes, and as a substitute for higher wages. Never- theless, this movement often represents a real attempt to put a soul into a great corporation, and to develop loyalty and esprit de corps among the workers. A typical example of welfare work may be seen in the construction of the modern factory, which affords a striking niustra- contrast to the dreary, poorly lighted and ven- tions. tilated fire traps of a century ago. Toilet facilities and rest rooms have also been provided. Depart- ment stores, which later began this work, are going through a similar evolution. Again, large modern corporations often have free medical dispensaries and sometimes social service departments. The United States Steel Corpora- tion spends nearly six million dollars annually on welfare work. Railroads have felt the new spirit and have come to see that contented and happy employees make for efficiency. Sleeping quarters, as well as smoking and amusement rooms, have been located near great terminals. Some industrial firms have established athletic fields where baseball games are played between the different depart- ments. Glee clubs, military organizations, reading clubs, and occasionally schools have been established within the organization of the plant. QUESTIONS FOR DISCUSSION 1. Sketch some of the early social effects of the factory s ystem in England. The Conservation of Labor 399 2. What steps were taken by Parliament to remedy these con- ditions? 3. Sketch the history of child labor in the United States. 4. What states and industries are conspicuous in this regard? 5. Why is it more difficult to legislate against this evil in the United States than in England? 6. Give some causes of child labor and suggest remedies. 7. State fully the effects of child labor. 8. What points should a model child labor law cover? 9. Compare the child labor problem with that of women in industry. 10. Discuss the sweat shop and its evils. 1 1 . What are some causes and results of the inadequate wages of women in certain occupations? 12. How have some states tried to regulate this problem? Do you think such attempts are wise and successful? 13. Show how women's sphere of activity has increased. 14. Classify the chief occupations of women to-day. 15. What do you understand by the welfare work of a modern industrial corporation? 16. Give some illustrations. 17. What has been the attitude of labor toward welfare work? Is such a position wise or fair? TOPICS FOR SPECIAL REPORT 1. The child labor laws of your own state. 2. The work of the Consumers' League. 3. Minimum wage laws. 4. Working conditions in some factory or department store near you. 5. Child labor in England before the law of 1833. 6. Twentieth century social legislation in England. 7. The welfare work of some modern corporation. 8. Contemporary social legislation in the United States. 9. Resolved that "women should not work in the industries." 10. Effect of the Progressive Campaign of 191 2 on social legislation. 400 Problems of American Democracy REFERENCES Abbott, E. Women in Industry. Cheyney, E. P. Social and Industrial History of England. Clopper, E. N. Child Labor in the City Streets. Hamilton, W. Current Economic Problems. Kelley, F. Some Ethical Gains Through Legislation. Chapters I, II and III. Mangold, G. B. Child Labor Problems. Reports of the National Child Labor Committee. Reports of the Consumers' League. CHAPTER XXXI Industrial Risks and Social Insurance I. Unemployment i. Causes: a. Special b. General 2. Amount 3. Social cost 4. Remedial measures II. Occupations of ri ?k 1 . Causes of danger : a. Poison b. Dust c. Extremes of temperature 2. Industrial accidents : a. Extent and character b. Railroad accidents c. Other accidents 3. Proposed remedies : a. Workmen's compensation b. Compulsory state insurance II. Sickness insurance 1 . National cost of ill health 2. Forms of insurance III. Old age insurance 1. In Germany 2. In Great Britain 3. Conclusion Although of a different character, the risks of industry are shared by both labor and capital. The enterpriser, A A 401 / 402 Problems of American Democracy who assumes the responsibility for an undertaking, faces the possibility of financial loss. But, while periods of depression mean lower dividends to the capitalist, they bring to the laborer the loss of employment and wages. Industrial accidents and sickness, as well as the possi- bility of a dependent old age, are among the hazards of industry. Like child labor and the sweat shop, these economic maladjustments have serious social effects. The problem of remedial legislation largely falls within the sphere of the individual states. Social insurance is an attempt to diffuse the risks of industry throughout society and to prevent the entire burden from falling upon a single individual or family. The most common types of social insurance are against accidents, ill health, and old age. Unemployment. — Numerous individual reasons may be assigned for unemployment, such as old age, sickness, Causes: intemperance, shiftlessness, or incapacity. Such speaai. personal defects, however, do not create the problem of unemployment, but merely determine its inci- dence, that is, which members of society shall be the unem- ployed. The great causes of unemployment are to be found in the economic environment. Division of labor is a complex mechanism, and modern industries are vitally interdependent. A strike of the London dock hands may cause loss of employment to the millers of Minneapolis. Again, there may be a temporary oversupply of some commodity. Tqo many individuals may have been work- ing in one industry, and overproduction may have resulted. Certain towns in the Middle West, for example, have been characterized as steel towns, or automobile towns. If over- production strikes one such industry, a serious loss of employment takes place. Industrial Risks and Social Insurance 403 Unemployment, however, is more general in periods of industrial depression. These unfortunate economic crises seem to have been regularly recurring phe- „ . . ' General. nomena. It has been estimated that, in almost every decade, the United States has suffered from a more or less severe panic. Rising and falling price levels have an important effect upon these business cycles, and hence the stabilization of prices is most important. Again, within a particular industry, there may be alternating busy and slack seasons. In the building trades construction work can be undertaken only in fair weather. Another important cause of unemployment is to be found in fre- quent changes in demand. Fashion is very fickle, and its dictates are uneconomic. A new type of shoe or a new style of cloth may mean the scrapping of old machinery and the construction of new. In general, we may say that the production of luxuries is characterized by a less stable demand than the production of necessities. Again, the invention of new machinery causes unemployment to some workers, who must find new means of livelihood. The constant changing of the tariff has had much the same effect. Thus, changes in the economic environment call for constant readjustment. Unemployment represents one result of imperfect coordination and adjustment. Unemployment may be chronic or temporary. Although it is greatly increased in periods of general depression, there is an alarming amount of permanent unemploy- ment. The Charity Organization Society of New York states that half of their applicants need work rather than material help . D uring the winter 0^914-1915 the unemployment problem became so acute in Phila- delphia that a commission was appointed to study the 404 Problems of American Democracy situation. The report showed that, in a city of a million and a quarter of inhabitants, the number of unemployed in various occupations ranged from fifty to two hundred and fifty thousand. The amount of unemployment in normal times was found to be alarming. Lace weavers, for example, were found to have worked only three-fifths of their time in a period of five years. One representative carpet mill had never failed to lose twenty per cent of its time in any year during the previous four years. It was estimated that dock hands did not work more than two days each week. It was found that every winter thousands of Italians returned to Philadelphia from the truck farms of South Jersey to render the city's unemployment prob- lem more acute. Except in times of great prosperity, there is probably an excess of the supply of labor of the lowest grade. This is known as the casual labor force, or the labor reserve. During the World War there was little unemployment, for production was increased and wages were high. Reconstruction of industry in the post-war period, however, brought a serious problem of unemploy- ment. Prices began to fall and the production of a number of commodities was curtailed. The costs of unemployment are heavy to the employee, to the employer, and to society. To the employee it means loss of wages and a lower standard of living. It Social cost. . , . injures the worker's morale and unfits him for the discipline of steady work. It also breaks up the organization of the employer. Efficiency is lowered by a changing staff of workers. The cost of "breaking in" a new man has been estimated at from twenty-five to one hundred dollars. The cost to society of unemployment may be read in an increased rate of poverty and crime. Industrial Risks and Social Insurance 405 The causes of unemployment suggest the remedies. Philanthropy is a mere temporary expedient. To effect a permanent remedy, changes must be made in Remedial the economic environment. Scientific manage- measures - ment has done much in this regard. Personnel depart- ments have been established within an industry and employment managers trained. Scientific studies of the causes of the great labor "turnover," and of absenteeism in industry, have been attempted. Improved working con- ditions, welfare work, and such democratic innovations as workers' councils have been found helpful. In certain cases it is also possible to dovetail seasonal industries so that constant employment is provided. Slack seasons may be used for taking inventories and for providing necessary stock. Education of the public, and of the manufacturer, to the necessity of a stable demand will tend to reduce sudden and extreme changes. A sound monetary and banking system is necessary to stabilize prices and to ward off the cycle of business depression. Too extreme speciali- zation in industry may well be avoided. Industrial edu- cation should seek not only to teach a man a trade, but also to make him an adaptable worker. Wherever pos- sible, the government should reserve its building and con- struction work for periods of economic depression. Such a plan will not only give employment when it is most needed, but it will also stimulate related industries which furnish necessary supplies. A system of public labor exchanges has been established in some states, whereby helpful information is secured for both the worker and the employer. Thus an attempt is made to adjust the labor force to industrial conditions, and to direct it from localities of oversupply to where it is needed. Unfortunately, in the 406 Problems of American Democracy United States, most of the labor exchanges are privately managed. What is imperatively needed is a national system of public labor exchanges which will avoid duplica- tion and guarantee correlation of labor information. Occupations of Risk. — The name dangerous trades is applied to certain occupations because their very nature is Causes of fetal to the health and safety of the worker, danger: These may be conveniently considered from the point of view of the chief sources of danger inherent in such trades. One source of danger lies in the poisonous character of the materials used in certain branches of industry. The effect of such work upon the individual is frequently seen in the disease known as lead poisoning, which often occurs in the manufacture of white lead. This substance enters the system through the skin, or by way of the alimentary canal when the worker is not careful to wash his hands before eating. Paralysis, insan- ity, and finally death may result. Several European countries have greatly reduced the mortality in this trade by forbidding such practices as dry rubbing, and by insist- ing upon the necessity of certain precautionary measures. Workers with phosphorus frequently contract a char- acteristic disease, singularly fatal, known as phosphorus jaw. This is one of the few dangerous trades against which our government has legislated. A second source of danger lies in those industries which expose the lungs to an excessive amount of dust. Nature has furnished protection for occasional exposure to a normal amount of dust, but continual exposure to this irritant is extremely dangerous. The lungs become spotted with foreign particles which make fearful ravages upon the delicate membrane. Tuber- Industrial Risks and Social Insurance 407 culosis and other diseases of the lungs and bronchial tubes affect the respiratory organs. This dust danger is well illustrated in coal mining. By screening the coal wet, the amount of coal dust in the air may be reduced. A similar pernicious effect often results from the dust generated by stone cutting, by metal grinding, and from the lint in tex- tile mills. Suction tubes and blowers should be used to draw off this vitiated air from the atmosphere. Certain gases and fumes may also be both dangerous and poisonous. In such cases the work should be done in a helmet, or under a hood with a forced draft. In many of the chemical trades the work is of a similar dangerous character. A third source of danger lies in sudden changes of tem- perature and air pressure. When steel workers, or those employed near hot furnaces, feel the outside contact of the cold blast of winter, they become f**p™atu/e. an easy prey to pneumonia. Workers under- ground in mines, tunnels, and subways often develop peculiar diseases due to changes of air pressure. Although higher wages are sometimes paid to such workers and to those in similar positions because of their dangerous character, society must still further protect them from the unusual strains of industry. The law must prescribe pre- cautionary measures and insist upon their enforcement. Shorter hours with frequent periods of rest, are absolutely essential to the health and safety of such workers. The industrial accident, impairing if not altogether destroying the efficiency of the worker, is another product of the factory system. The report of the first Cooperative Safety Congress showed that on the average, in certain occupations, one worker was killed in every sixteen minutes, and one injured in every sixteen seconds. This is the price 408 Problems of American Democracy in human life that America has paid for speed. The respon- sibility for this condition rests upon both the employer and the worker. The worker is sometimes careless, accidents: indifferent, and ignorant; while the employer is £hamcter d often negligent in supplying safety devices and in rigidly enforcing the law. Of recent years a campaign of popular education has been inaugurated with the slogan "Safety First." A national organization for the safety of the worker uses the "white cross" to stand for prevention, in the same way that the "red cross " stands for first aid to the injured. Industrial accidents may be commonly classified according to occupation, as railroad, mining, factory, and building accidents. The Interstate Commerce Commission carefully com- piles the statistics relating to railroad accidents. It would Railroad seem that, in an average year, one employee is accidents. ^flied for every four hundred employed by the railroad. This, of course, does not include thousands of passengers who have been killed or inju :ed in wrecks. A comparison with certain European coul tries, like England and Germany, shows that there is no justification for such an appalling loss of life. Remedial measures should apply to company and workman alike. The corporation should not only install the latest and most approved signal devices, but should also use steel coaches wherever possible. Unfor- tunately, the financial condition of some railroads has pre- vented an expenditure of funds for such purposes. A fed- eral law requiring automatic couplers has reduced markedly the number of casualties among trainmen. The employee, however, cannot be relieved of his individual responsibility. He must be constantly on the alert for his own safety and for that of others. From the railroad point of view, as Industrial Risks and Social Insurance 409 well as from that of the public, it is an absolute waste to employ ignorant, careless, or unsteady workmen. On the other hand, hours of work should not be so continuous as to produce fatigue and lowered efficiency. Statistics regarding mining accidents are compiled by state inspectors and are neither so complete nor accurate as those regarding railroads. Of mining acci- other dents, those in coal mines are the most numer- accidents - ous.' In the coal-producing countries of Europe the out- put has increased greatly, but the number of deaths per thousand has decreased. This is due to legislation con- cerning the operation of mines and to the establishment of testing stations for the study of problems relating to safety in mines. Much has been accomplished by government regulations concerning the use of safety lamps, explosives, and the proper support of small passageways. In regard to manufacturing, we find the same incompleteness of statis- tics because of the system of state inspection of factories. The chief source of danger here lies in the frequent use of unguarded machinery. Safety appliances are often dis- carded in the "speeding up " process. Inefficient labor and long-continued work upon the same monotonous operation frequently results in careless accidents. The effects of industrial accidents and dangerous trades are more than an impairment of personal efficiency or an individual sacri- fice of life and limb. They also represent an enormous loss of productive power. Again, the burden of such injuries falls not only upon the worker himself, but also upon his family and the community. Loss of the services of the bread winner may make the family destitute of proper support and thus dependent upon society. In view of these marked effects of dangerous trades and 41 o Problems of American Democracy industrial accidents upon society, it is important that the individual affected be provided with legal machinery, where- by he may be reimbursed for injuries suffered at remedies : the hands of his f ellowmen. That is, society must Compensation °^ er som e means of protection to the workman, or to his family, for social injuries. The first step toward social insurance was found in the Employers' Liability Act, under which the injured workmen might bring suit against the employer to recover damages for wrong" suf- fered. However, because of the doctrine of contributory negligence, it was often impossible for the workman to receive any recompense for his injury, if it could be proved that such injury was partly caused by his own carelessness or by that of his fellow workers. It, therefore, marked a great step in advance for the workman when society evolved the idea of a Workmen's Compensation Act, whereby the expense of law suits is generally eliminated. According to this act, the workman, for his injury, receives automatically a percentage of his wages or a certain sum in proportion to the injury sustained. Even though the fault may be largely that of the workman, the employer must bear the brunt of the financial burden and in this way accept finan- cially the risk which the laborer assumes physically. Hence the employer is more apt to consider the safety of his employees. In 1897, to supersede the older Employers' Liability Act, England passed a Workmen's Compensa tion Act. In the United States, this legislation is largely a matter of state action, and several commonwealths, includ- ing Pennsylvania, have enacted such laws. Finally, Con- gress in 1908, enacted a law providing a system of com- pensation for accidents suffered by industrial employees of the federal government. Industrial Risks and Social Insurance 411 Another form of social insurance is known as compul- sory state insurance. Germany was the pioneer in this movement. In 1884. a law was enacted requiring _ ^ . Compulsory employees to become members of mutual acci- state . , insurance. dent insurance companies. These are privately managed, but are supervised by the Central Insurance Office. The insurance associations levy assessments upon the member companies to provide funds from which to pay compensation. The injured workman, or his dependents, receive payment in accordance with a legally prescribed scale of rates. The accident insurance is correlated with a plan of compulsory sickness insurance. For the first thirteen weeks, the payment to the worker comes from the latter fund. Hence the burden upon the employer is not so heavy. Like other forms of social insurance, the tend- ency is to shift the cost upon the general public. Since industrial insurance premiums are part of the cost of pro- duction, the price of the product is correspondingly higher. The products of dangerous trades become expensive, and their use is thus discouraged. Industrial insurance takes another form in Norway, where employers are required to pay premiums into a state insurance fund from which injured workers receive compensation. The rate of premium which each employer pays depends upon the number and wages of his employees, and upon the hazard of the occu- pation. Sickness Insurance. — The examinations for military service during the World War afforded an interesting study of the physical fitness of the nation. According „ . ^ J ° National to a report of the Provost Marshal General, cost of m , .„. . , . ' health. over three million men were examined in the period from December, 191 7, to September, 1918. Approx- 412 Problems of American Democracy imately sixty-five per cent of the men between the ages of twenty-one and thirty-one were found fully qualified for military service. A greater number of rejections were made from the urban population than from the rural. Again, a slightly greater percentage of rejections occurred with the negro than with the white applicants, and with the foreign born as compared with the native. The amount of national sickness is equally important, although there are no such significant statistics. A committee of experts, however, estimated that there are annually two hundred and fifty million days of sickness among the workmen of the United States. Expressed in terms of money, this means an annual cost of perhaps a billion dollars. The United States Bureau of Labor reports that every workman in the steel industry has an expectation of nine days lost by sickness each year, as against four days lost by accident. Many industrial firms have inaugurated plans by which their employees receive partial wages during sickness. Forms of There are also unions and fraternal organizations insurance. wn i cn p a y s { c ^ benefits. Germany, however, was the first nation to make sickness insurance compulsory. In 1885 a law was passed for this purpose, which applied to all wage earners receiving less than two thousand marks a year, totaling almost twenty million persons. The employer pays one-third, and the employee two-thirds, of the cost. Insurance cards are carried by the worker, and both employer and employee purchase sickness insurance stamps at the post office. Thus the government receives money premiums from which the insurance office pays sick benefits. In 191 2, Great Britain passed the National Insurance Act. Sickness insurance became compulsory for all wage earners receiving less than one hundred and sixty pounds annually, Industrial Risks and Social Insurance 413 about fourteen million workers. A similar system of stamps and cards was inaugurated, but the employer's contri- bution was relatively larger. The whole insurance system of Germany was codified in 191 1. Among the benefits provided for were not only money compensation, but also provision for medical attendance and necessary appliances, such as spectacles and artificial limbs. Free admission to the hospital was provided, when necessary, as well as pro- vision for maternity cases. Old Age Insurance. — Germany was also the first nation to administer compulsory old-age insurance. Because of the paternalistic nature of the government, i n such schemes have originated and flourished in German y- that country. This particular scheme compels the employer to see that each employee has an old-age insurance card with the proper amount of stamps affixed. These stamps represent small premiums of from three to nine cents a week, varying with the wages paid. The employer affixes the stamps which he has purchased from the government, paying half himself and deducting the other half from the employee's wages. The annuities granted are correspond- ingly small, and averaged before the War about forty dollars. The government itself added twelve dollars and fifty cents out of the imperial treasury for each pen- sioner. In 1908 Great Britain passed the Old Age Pension Law. This is a gratuitous payment by the government as com- pared with the compulsory old-age insurance i n Great plan of Germany, in which employer, employee, Bntain - and government all contribute. At the age of seventy, a pension will be paid to any individual whose income does not exceed one hundred and fifty dollars a year, provided 414 Problems of American Democracy he has been a British citizen for twenty years and has never been either a pauper or a criminal. The maximum pension is five shillings a week. Thus, social insurance covers the different hazards of industry, and each type must be considered on its own merits. Industrial accident insurance, however, has passed the experimental stage and should be included within the legislative program of every enlightened State. On the other hand, most students of social insur- ance feel that the difficulties of unemployment insurance are insurmountable, and that such schemes should be left to private associations like labor unions. No nation has as yet provided unemployment insurance. Sickness and old- age insurance are still in the experimental stage. It is here that the advocates of social insurance are planning their campaign in the United States. Sickness insurance is feared by some because it represents another extension of governmental activities. It is also contended that it would offer many administrative difficulties. Old-age insur- ance is denounced by many writers as socialism in disguise. It might discourage thrift in the young, and it would undoubtedly increase both the expense and the functions of the national or state government. QUESTIONS FOR DISCUSSION 1. Enumerate some of the risks of labor and contrast them with the risks of capital. 2. Explain what you understand by social insurance and name the leading types. 3. What elements in the economic environment make for unem- ployment? 4. How can these be changed to minimize unemployment? 5. Discuss the amount of unemployment, chronic and temporary. Industrial Risks and Social Insurance 415 6. Show the social cost of unemployment. 7. Show why several -dangerous trades are so called. 8. Can you name any others besides those in the text? 9. Show that the rate of industrial accidents is alarming. 10. What occupations lead in this respect and how may conditions in each be improved? 11. Show the social effects of industrial accidents. 12. Compare American and European conditions in respect to accidents. 13. Compare the Employers' Liability Act with the Workmen's Compensation Act. 14. Contrast the latter with Germany's plan. 15. Show the industrial cost of sickness. 16. Do you think sickness insurance should be introduced, or should be made compulsory, in the United States? 17. Explain the operation of the German system. 18. Compare the English and German plans of old-age insurance. TOPICS FOR SPECIAL REPORT 1. How the scientific management of industry may reduce unemployment. 2. Cycles of business depression. 3. A comparison of the casualties of war and industry. 4. The Red Cross and Safety First movements. 5. Social insurance in Germany. 6. The social insurance program of your own state. 7. The social insurance program for American soldiers and sailors during the World War. 8. The abuse of the doctrine of contributory negligence. 9. A contrast between socialism and social insurance. 10. Effects of laissez faire or individualism on industry in England and America. 11. Objections to a program of social insurance. REFERENCES Bevertdge, W. H. Unemployment. Burch, H. R. American Economic Life. Chapter XVI. 4i 6 Problems of American Democracy Carlton, F. T. History and Problems of Organized Labor. Hamilton, W. Current Economic Problems-. Chapter XI. Lescohler, D. D. The Labor Market. Oliver,~T. Dangerous Trades. Oliver, T. Diseases of Occupation. Seager, H. R. Principles of Economics. Chapter XXXII. Seager, H. R. Social Insurance. Willits, J. H. Unemployment in Philadelphia CHAPTER XXXII Standards of Living I. General characteristics i. Meaning of standard of living 2. Its relative nature 3. Nature of economic wants : a. They vary b. They expand 4. Real wages II. Family budgets 1 . Component parts : a. Chief items b. Minor items 2. Variations: a. Among groups b. Among localities III. Minimum standards 1 . Older investigations 2. Effect of World War: a. On wages b. On cost of living 3. The conclusion After all, the fundamental requisite of a contented democracy is not a highly complicated system of govern- mental machinery for the purpose of alleviating economic and social distress, but a sufficient participation in eco- nomic prosperity which relieves the necessity of continued governmental assistance in industrial life. However, great national prosperity does not necessarily mean prosperity upon the part of all the citizens of the republic. We have BB 417 418 Problems of American Democracy observed that national wealth and national welfare are not necessarily identical. If a considerable number of people have insufficient incomes to maintain decent standards of living, the nation exhibits the social maladjustment of poverty. Before investigating the problem of poverty, however, it is necessary to consider what is meant by a standard of living. General Characteristics. — A standard of living may be regarded as a measure of economic consumption, that ,. . , is, as the amount of wealth which an individual Meaning of standard or a family consumes. Economic goods may be roughly divided into three groups — necessities, comforts, and luxuries. Exact social measurements are impossible, and standards of living gradually fade into each other like the colors of the spectrum. The standard of living of an unskilled laborer may include little more than the necessities of life, while that of his employer may be largely made up of luxuries. There is one standard of living for Mrs. Wiggs of the Cabbage Patch and another for her friend, the Christmas Lady. Between the two extremes are innumerable variations involving all degrees of comforts. Standards of living are generally estimated in terms of money, and experts speak of the different income groups in society. The estimate is generally based upon the family rather than upon the individual expendi- ture, for the family is the usual unit of economic con- sumption. Not only do standards of living vary between different income groups, but also between nations. Thus, we hear its relative of an American standard of living as compared nature. ^^ a E ur0 p ean or a Chinese standard of living. Finally, standards of living vary from age to age, and the Standards of Living 419 comforts of a middle class family in England to-day are very different from those of the Elizabethan period. In short, a standard of living is a relative and comparative thing. People do not miss what they have never enjoyed. The philosopher may object to such a commodity measure- ment of welfare and claim that happiness is a state of mind. A poor man may be happier than a rich man. The student of society does not deny the truth of such a possibility, but finds it impossible to measure accurately happiness which rests upon an intangible state of mind. Conse- quently, he is forced to content himself with measuring standards of living in terms of the wealth consumed. An exact measurement of standards of living is also rendered difficult by the diversity of human wants. One workman may regard tobacco as a necessity and curtail his consumption of food in order economic to gratify this want. The expenditures of I _ one individual may seem very irrational to another. One successful business man may desire to build public libraries and another to construct racing yachts. If the consumption of a single economic good continues, the principle of diminishing satisfaction begins to operate. The second automobile has less want-satisfying power to an indi- vidual than the first. The small boy eating hot cakes for breakfast may have an enormous gustatory capacity, but the point of diminishing satisfaction, or utility, is finally reached. This principle of diminishing utility is lessened by the great variety of economic goods, which the Indus- trial Revolution has made possible. Another characteristic of human wants is their power of rapid expansion. As one's income increases, one's eco- nomic wants increase even more rapidly. Standards of 420 Problems of American Democracy living, like India-rubber, seem capable of almost infinite expansion. Occasionally the snapping point is reached, , and disaster overcomes the nation. Imitation is They expand. a powerful force in society, and each group looks longingly at the standard of living of the next higher income group. Sometimes the standard which is set by the so-called "social set" is as harmful as it is shallow. Its purpose may be a mere display of wealth, with the con- sequent inference of superiority. The logical outcome of such "conspicuous consumption" is a tendency to convert a democracy into a plutocracy. Such was the social and political evolution of ancient Rome. "Ill fares the land, to hastening ills a prey, Where wealth accumulates and men decay." Standards of living are influenced not only by what one wants, but also by what one can purchase. Human wants Real are upon one side of the equation, and income wages. or wa g es U p 0n the other. Economists differen- tiate between real wages and money wages. A miser, like Silas Marner, may have found pleasure in the mere count- ing of his gold, but what a normal individual desires is the goods which he can buy, either in the present or future. Real wages mean the economic goods, or services, which can be purchased with the money wages. In order to express money wages in terms of real wages, the general price level in the community must be considered. If a man receives two thousand dollars to-day, instead of the one thousand dollars received several years ago, his money wage has been doubled. If the general price level during this period has similarly increased, however, the purchasing power of money has been cut in half. Hence his real wages Standards of Living 421 remain the same. But, if prices decline and money wages remain the same, real wages are increasing. Family Budgets. — Just as a nation or city must bal- ance its expenditures against its receipts from taxation, so the average family must balance purchases Component against wages. Any attempt to do this sys- P arts - tematically may be called making a budget. Formerly the study of economic consumption was rather neglected, but of recent years a number of studies have been made concerning family budgets. The commonly accepted unit of measurement is a family of five, consisting of the father, mother, and three dependent children. The largest single item in the family budget was found to be for the expenditure of food. This ranged from about fifty per cent of the entire wages of the lowest income group to twenty-five per cent in the case of families in moderate circumstances. Rent and clothing vie for second place in the expenses of the families recently studied, for each averaged from fifteen to eighteen per cent of the wages. The amount spent for rent increases as we go up the social scale, but the proportion of the total income so consumed is remarkably constant. In the fourth place is the expenditure for light and heat, which varies from five to eight per cent. Transportation may or may not be an important item in the Minor expense account, according to the locality con- ttemSm sidered. The amount left for all other purposes varies from nothing in the case of the very poor to almost fifty per cent in the case of those in moderate circumstances. It is understood that the amount spent for the necessities of life, such as food and clothing, increases as we ascend the various income groups. It is important, however, to 422 Problems of American Democracy observe that the per cent of the total income spent for such purposes steadily declines. As we go from the poorer groups to those in comfortable circumstances, the proportion, as well as the amount spent for all other pur- poses, steadily increases. Indeed, this margin of expen- diture above the actual necessities of life is regarded as the test of a desirable standard of living. In it are included expenditures for recreation, amusement, insurance, saving, and incidentals. A study of family budgets reveals many interesting dif- ferences in various standards of living. As a rule the Variations- standards of living of our native communities Among are higher than those of the foreign born, and the standards of the white communities are higher than those of the colored. Low standards of living are both a cause and an effect of low wages. Again, within the same income group, there are interesting differences in family budgets. Some immigrant groups, for example, spend relatively more on food, and others relatively more on clothing. Certain groups are very improvident, while others are parsimonious. Within a great city, there may be immigrant colonies and negro settlements, which afford an interesting comparison in the matter of standards of living. Each group clings to the old customs, as can be seen in characteristic foods, clothing, and forms of recre- ation. The new generation shows its Americanized char- acter in the changed standards of living. City and country also afford an interesting comparison. City workers often spend a relatively greater proportion Among of their wages upon clothing than do those in the country. A study of budgets would show different sets of consumption values. In general, the cost Standards of Living 423 of living in the country is lower than that in the city. Consequently, a higher standard of living can be main- tained upon the same monetary income. A small frame house can be rented in the country for the same amount needed for a few rooms in the city. Again, the cost of certain foods is relatively lower in the country. Investi- gations have found similar differences among various cities in the matter of the cost of living. Minimum Standards. — The minimum wage under which a normal standard of living can be maintained has been variously estimated. For the normal fam- „. J Older ily, in 10 10, the annual sum of seven hundred investi- ... . gations. dollars was fixed upon as a minimum in certain places. For larger cities, like New York, Dr. Chapin esti- mated that a yearly income of less than eight hundred dollars was not sufficient to maintain a normal standard of living for a family of five. A similar sum was fixed upon after an investigation of the stock yard district of Chicago. There were, however, at that time five million industrial workers in the United States, who were annually earning six hundred dollars or less. Although there was a high pro- portion of single men in the ranks of unskilled labor due to immigration, a -considerable number of workers were try- ing to support families. At that time, sixty-five per cent of the workers in the steel industry of Pittsburgh, "the city of a thousand millionaires," were classified as unskilled laborers with wages ranging from a little over four hun- dred to a little over five hundred dollars. A wage lower than the minimum required to support a decent standard of living seemed to have been the rule in the New York tenements, in the stock yard section of Chicago, and in the industrial towns of Pennsylvania. 424 Problems of American Democracy With the World War came the great increase in prices. There began a race between increased income and increased Effects of cos ^ °^ living. It was easily seen that an the War: increased wage did not give an equivalent real On wages: * i i 1 i r , . . wage. Although the cost of living went up for all consumers, wages went up very irregularly. The salaried man's wage increase fell far short of the increased cost of living. The wages of organized labor went up more rapidly than did those of unorganized labor. It is safe to say that the wages of many groups of skilled and semi-skilled labor doubled and, in some cases, even trebled during that period. There was an increased demand for labor, and immigration ceased to provide a supply of unskilled labor. The beginnings of this rise in wages during the War can be seen in the income tax returns for 191 7. This showed that three and a half million persons, or approximately seventeen per cent of the twenty million American families, were receiving annual incomes of over a thousand dollars. If we allow for items and persons not shown upon these returns, the percentage can be stretched to twenty-five or even thirty. This rapid but irregular increase in wages continued up to, and even a short time after, the close of the World War. From an investigation made in the industrial establish- ments of Pennsylvania and Massachusetts, Professor David Friday estimated that the average annual wage in 1 9 19 was about thirteen hundred dollars. He further estimated that wages increased a little over two hundred per cent between 19 13 and 19 19. It must be remembered, however, that these statistics do not include such salaried groups as clerks, policemen, and postal employees. He argued further that the problem was one of increased pro- duction rather than simply a matter of wealth distribution. Standards of Living 425 For example, if all incomes of over five thousand dollars a year were divided up among those making less, there would have been only two hundred dollars additional apiece. The older attempts to express standards of living in terms of money were rendered valueless by the increased cost of living brought about by the World War. on cost of The close of the War found the general level of living - prices approximately twice as high as before the conflict. Charts can be prepared to show this advance by means of selected commodities, whose increases in price have been expressed in percentages and then averaged. Such statistics of price changes are known as index numbers. It is also interesting to express upon the same chart the changes in prices and the changes in wages. In this manner the United States Bureau of Labor made an investigation during the War of conditions among the ship workers in the cities along the Delaware River. The sum of fifteen hundred dollars was fixed upon at that time as the minimum sum upon which a decent standard of living could be maintained by a family of five persons. In 19 18, the Philadelphia Bureau of Research published an itemized report showing that the same normal family of five required an income of eighteen hundred dollars to maintain a minimum standard of living. Other investigations at about the same time determined upon a slightly lower sum. On the other hand, a declaration of the garment workers placed twenty-five hundred dollars as its estimate of the wage required for maintaining a normal standard of living at that time. High prices continued for a time after the Civil War, but there finally began a gradual decline which continued more or less regularly throughout the remainder of the 426 Problems of American Democracy century. We have already noted the relationship between prices and the quantity of money. Just as prices gradually The declined after the Civil War period, so, not long conclusion. after ^ cloge of ^ World War? the p rocess of deflation began in America. Moreover, there appeared to be a greater supply of goods in the country than had been' imagined. War prosperity was succeeded by a period of business depression and a drop in prices began, with its consequent effect on wages. It is likely that in spite of temporary fluctuations, the general tendency will be down- ward for some time to come, until another period of busi- ness expansion results in a new upward movement. Fall- ing prices mean an increased purchasing power of money. On the other hand, they bring unemployment and de- creased wages to the worker. It is as difficult to keep falling wages proportionate to falling prices as to keep rising prices and rising wages proportionate. It is the old story of attempting to keep real wages constant, in spite of changing prices and changing money wages. QUESTIONS FOR DISCUSSION 1. Define the expression "standard of living." 2. Is there one standard of living? Explain. 3. Show how standards of living are relative. 4. Illustrate the principle of diminishing satisfaction in con- sumption. 5. Enumerate some characteristics of economic wants. 6. Explain what you understand by " conspicuo.us consumption." 7. Explain the difference between real and money wages. 8. Why is the family used as the unit of consumption? 9. What is a family budget? 10. Name some of the important elements in it. 11. Show the relative changes in budgets from the lower to the higher income groups. Standards of Living 427 12. Show some of the variations which can be found in standards of living. 13. What were some estimates of a minimum standard of living before the World War? After the World War? 14. Were all the citizens of prosperous America enjoying such a standard? 15. Show the effects of the War upon the general price level. 16. Discuss the effects of the War upon wages. 17. Enumerate some of the more recent attempts to express a minimum standard of living in terms of money. 18. Do you believe that the government should fix a minimum wage for certain industries? Why or why not? What machinery would you employ? 19. Compare wages to-day with wages at the close of the World War. 20. Have prices declined or risen since the War? How has this affected real wages? TOPICS FOR SPECIAL REPORT 1. Oriental and American standards of living. 2. Standards of living among the immigrants. 3. Standards of living among the negroes. 4. Your family budget, or the family budget of Mr. X. 5. A chart showing recent changes in prices. 6. The War and the standard of living. 7. An analysis of some recent report upon a minimum standard of living. 8. Present wages in the chief industries in your community. 9. The simple versus the many-sided life. 10. Progress as measured by the expansion of wants. REFERENCES Biirch, H. R. American Economic Life. Chapters V, VI and VII. Chapin, R. C. The Standard of Living Among Workingmen's Families in New York. King, W. I. The Wealth and Income of the People of the United States. Reports of Federal Commission on Industrial Relations. 428 Problems of American Democracy Reports of Philadelphia Bureau of Municipal Research. Streighthoff, F. H. The Standard of Living Among the Industrial People of America. Streighthoff, F. H. The Distribution of Incomes. United States Bureau of Labor Bulletins. CHAPTER XXXIII The Problem of Poverty I. Nature of poverty i. Definition of terms 2. Extent of: a. Poverty b. Pauperism 3. The point of view: a. Change of attitude b. Reformers' errors c. Theory of evolution II. Causes of poverty 1. Environmental: a. Physical environment b. Economic environment c. Social environment d. Defects in government e. Defects in education 2. Individual: a. Degeneracy b. Disease c. Intemperance d. Crime e. Desertion /. Death of main support g. Old age h. Defectives i. Indolence Were it possible to guarantee a comfortable standard of living to every American family, no problem of poverty 430 Problems of American Democracy could exist. When national prosperity is sufficiently dif- fused throughout the community so that each individual or family is adequately provided for, the goal of social welfare, economically considered, is attained. Unfor- tunately, no such situation has ever prevailed in any human society — democratic or otherwise. In fact, there exist everywhere certain subnormal groups which are more or less in debt to society. These are known as the social debtor classes and fall into three separate groups — the dependents, the delinquents, and the defectives. The first includes paupers; the second, criminals; and the third, physical and mental defectives. It is now our purpose, in this and succeeding chapters, to examine in detail the problems arising from the existence of each of these classes in American democracy. Nature of Poverty. — In a discussion of poverty it is necessary at the outset to define several terms. That class Definition m society with the lowest income, or standard of terms. Q £ 1^^ j s usually referred to as "the poor." With the advance of civilization, the standards of living of both rich and poor have been raised. The well-to-do classes live in luxury unknown a few centuries ago to the corresponding group. The poor of to-day also possess more comforts than those enjoyed by a similar group in earlier society. The poor, however, in the sense of the lowest income class have persisted in society because our social system has always been divided into economic groups. The rise of standards of living goes on in all classes, but in spite of this upward movement the poor have continued to exist on a minimum of subsistence. In contradistinction to this popular use of the term poor, the sociologist employs the term poverty to mean the condition The Problem of Poverty 431 of only that group whose income, and therefore standard of living, is so abnormally low that neither normal health nor efficiency can be maintained. It is in this sense, and to such a group, that the term poverty will be applied in this chapter. It may be possible for the advance of civili- zation to eliminate such a group by raising its income to an amount required to maintain an efficient standard of living. The pauper group is a part of the poverty class, just as this latter class is a part of the general group called the poor. Paupers are those individuals or families, in almshouses or in their own homes, who require economic help from various charity organizations. They constitute the real group of social debtors, for pauperism is essen- tially a state of dependency. Those individuals, however, who live in a condition of poverty but are too proud to receive outside help, should not be referred to as paupers. The extent of poverty is difficult to determine, for social measurements can not be made with absolute and undevi- ating accuracy. Standards of health and effi- Extent of: ciency vary with the individual judgment of the Povert y- observer. Again, the purchasing power of income fluc- tuates with the rise and fall of prices. Since poverty has an economic basis, its extent throughout the general population varies greatly with industrial prosperity and depression. Poverty is also much higher in the city than in rural communities. Several individuals, a few years ago, made special studies of the extent of poverty in a par- ticular locality. Charles Booth made the first great inves- tigation of its kind for London, and Rowntree undertook a similar study for the city of York. In these cities the estimated proportions of those living in poverty, that is, below an income required to maintain the normal stand- 432 Problems of American Democracy ard of health and efficiency, were thirty and seven-tenths per cent and twenty-seven and eight-tenths per cent, respectively. Robert Hunter, by similar investigations in our own country, estimated that the proportion of those living in poverty in our large cities and industrial centers rarely fell below twenty-five per cent. It is smaller, of course, in the rural sections, but for our country at large the expression "the submerged tenth" is probably not an exaggeration. The extent of pauperism is almost equally difficult to determine. The almshouse often shelters such different groups of dependents as the sick, the feeble- Paupensm. . minded, the aged, and the shiftless. Records are often poorly kept and, unfortunately, many institu- tions for long periods of time kept no records whatsoever. However, in 1920, the United States census placed the num- ber of dependents in our various institutions at somewhat less than one million. This estimate, however, has little real significance because most paupers are not in alms- houses, but are cared for by what is known as the system of outdoor relief. The total number of dependents is probably between four and five millions. The support of this army of dependents requires annually about a half billion dollars. If we combine the paupers with the poverty group, the total number in America of such persons in ordinary times will probably reach the fifteen million mark. In Europe, the World War brought devastation and untold poverty to millions of people; while, in our own country, it finally brought a serious problem of unemployment with its attending economic hardships. The old attitude toward poverty was that it always had existed and always would continue to exist so long as The Problem of Poverty 433 the world endured. Almsgiving was regarded as a religious duty and an indication of the piety of the donor. The monasteries of the Christian Church sheltered the poor and unfortunate of the Middle Ages, of view: So, to-day, innumerable beggars in the Moham- ^^ °* medan countries of the world continually appeal to the traveler for ' ' alms for the love of Allah. ' ' The modern view point, however, is that poverty in its narrow socio- logical meaning is unnecessary. The same scientific spirit which has rooted out smallpox, yellow fever, and other phys- ical contagions is striving to cure the social disease of pov- erty. The remedy is not indiscriminate almsgiving, because that kind of charity only increases pauperism. The causes which produce this unfortunate condition must be elimina- ted by the individual and by society. Poverty will then diminish in the same way that the elimination of the mosquito has reduced the amount of yellow fever in the tropics. A number of social reformers have made the error of assuming that poverty had but one cause. Thus Malthus believed poverty was due to the pressure of Reformers' 1 population upon food supply. Karl Marx errors - sought its explanation in the ownership of the instruments of production by the capitalistic class. Socialism was therefore his remedy. To Henry George, poverty was the result of the rise in rent, and only the Single Tax could remove it. Poverty, however, is a complex phenomenon and its causes are manifold. They are both objective and subjective. Not only environment, but heredity also must be taken into account in analyzing the causes of poverty. Each case of dependency has its roots in a number of causes which lie both in the individual and in his environment, cc 434 Problems of American Democracy Evolution in the field of biology may offer us a helpful parallel. Society may be regarded for most individuals as Theory oj a form of the struggle for existence. Some evolution. environments are more favorable to survival than others. Again, variations exist between individuals; some are stronger, wiser, and more efficient than others. We have seen that in human society artificial handicaps may also exist, for there is not always equality of oppor- tunity. Modern selection does not always eliminate the unfit, but merely places them in the lower or poverty group. Altruism in modern civilization expresses itself in the building of almshouses and in the organization of charity. Human society also differs from the animal world because of the existence of a directive intelligence, by means •of which man may transform his environment and make purposive changes for his own betterment. Causes of Poverty. — A people may suffer from poverty because of the barrenness of the physical environment due to poor soil or other natural restrictions. Migra- mentah" tions from poorer to richer regions then result in Physical wars. Again, there may be unfavorable climatic environment. . conditions, such as an excess of moisture or a lack of rainfall, as found in swamp lands and deserts. Scientific agriculture has done much for the productivity of such regions and has made them more capable of sup- porting a larger population. Natural forces may produce floods, earthquakes, storms or droughts, and cause a given locality to suffer from temporary poverty or even pauperism. Illustrations of this fact are found in the Johnstown flood, in the San Francisco earthquake, and in the storm of Galveston. Fires in our great cities have, by force of accident, reduced many families of means to actual want. The Problem of Poverty 435 436 Problems of American Democracy Again, certain diseases, like malaria and hook-worm, flourish in particular environments. Inhabitants of these regions are regarded as indolent and shiftless, whereas their constitutions are really undervitalized by environ- mental circumstances. The chief objective causes of poverty, however, lie in the economic environment. By the use of improved Economic methods of production, western nations have environment. reac h ec i a better economic adjustment than the Orient, where poverty is more rampant. Nevertheless, we have seen that our own progressive and democratic society permits many maladjustments, such as occupational diseases, industrial accidents, and child labor. Social insurance is an important ally in the war against pauperism. Low wages afford a most important cause of poverty. The total income for many families is insufficient to maintain a normal standard of living. Unemployment is another economic maladjustment resulting in poverty. Cycles of business depression and seasonal unemployment are attended by an enormous rise in the poverty rate. Periods of financial distress and industrial crises cause a terrific strain upon relief organizations. Strikes and lockouts have a similar effect. That changes in industry may produce temporary hardship is well illustrated by the transition from the domestic to the factory system. A bad system of land tenure, such as existed in England during the time of the enclosures, produces much poverty. The rapid industrialization of the United States since the Civil War has had its accompanying social cost in increased poverty. Before this transition, the great Mississippi Valley for many years furnished a supply of free land to those- in our own country who cared to move westward. The Problem of Poverty 437 In fact, the poverty problem in America may be said to date from the increasing exhaustion of this supply of free land. Other economic causes of poverty may be found in various maladjustments brought about by changing economic conditions. Social environment is another factor in the problem of poverty. Unsanitary living conditions may be as much the cause, as the result, of poverty. We have social already spoken of bad housing conditions in ™™° nment - connection with the problem of the city. Such conditions may produce sickness, which often results in the death or unemployment of the wage earner. Thus, the family becomes dependent upon the charity of the community, a situation which might have been obviated by different living conditions. Sickness or death of the bread winner may be merely the immediate and most obvious cause of poverty resulting from bad housing. Such distinctions are important, for in each case of poverty there are numerous contributory causes. Again, the associations that pre- vail in the congested districts of a great city may injure the morals, as much as the health, of those concerned. Idleness, shiftlessness, or degeneracy in family life may thus result in poverty. The saloon, the immoral dance hall, vicious theatres and amusement places have often led to the dissipation of funds required for the necessities of life. Moreover, such sordid pleasures inculcate ideas other than those of steady industry and produce a degenerating effect upon the health and morals of the worker. Again, unrestricted immigration may be as injurious to the immi- grant himself as to the American worker, whose wages and standards of living he lowers. Our study of immigration has shown how large a percentage of the recipients of char- 438 Problems of American Democracy ity are foreign born. Unwise philanthropy as a factor in poverty will be discussed in the following chapter. It will be sufficient to state here in this connection that, so long as begging is more profitable than working, poverty will spread throughout society. Political corruption often returns to power the legislator who fails to pass laws for the good of those who elect him. Defects in Because of inadequate legislation, monopoly government. p r i ces ta k e too i arge a s hare of the laborer's wages, child labor continues to harass his family, and the building inspector fails to report his landlord's condemned tenement. Legislation is no panacea for social ills, but wise laws and their proper enforcement are necessary to progressive adjustment. They are an essential part of any scheme of social reform. Again, bribery of the voter may result in the purchase of the necessities of life for some poverty-stricken individual. The ward "boss" may be to him a greater help in time of trouble than the local charity organization. Such a policy, however, is to say the least short sighted, because it does not eliminate the causes and conditions which give rise to poverty. The poor man's vote should compel beneficial legislation for social reform. The attitude toward government is changing and its sphere of activity widening. Like other institutions of society, government is being socialized. It must provide for the public health and recreation, as well as for the pub- lic safety. Bad housing conditions and unsanitary work- ing conditions are a reproach to good government. Among other ideals, education should aim to make the individual self-supporting. Lack of industrial training in our public schools has been one cause of dependency. Until recently, it often happened that a boy could not receive The Problem of Poverty 439 training in a trade at public expense unless he committed a crime and was sent to the industrial school Defects in or to the reformatory. Statistics also show education - that the proportion of illiteracy and ignorance among dependents is abnormally high. Let us now inquire into those causes of poverty which are individual rather than environmental in nature. Pau- perism is an acquired characteristic and conse- Individua i quently not hereditary. But a physical and causes: mental degeneracy, causing poverty or pauper- ism, may be inherent in the germ cell and therefore heredi- tary. This fact would seem to explain why pauperism may "run" in a given family and be regarded by the unin- formed as hereditary. Such degeneracy may take various forms in the second generation. The offspring of a drunken parent may incline toward both drunkenness and pauper- ism. Neither characteristic is strictly speaking hereditary, as is the inherent weakness or degeneracy which produces it. The physical and mental stamina of certain stocks may be subnormal, and their offspring, under force of cir- cumstances, may drift into one of the various social debtor classes. They may also be regarded as inferior variations, which cannot care for themselves in society's struggle for existence. Certain studies of degenerate families seem to bear out this conclusion. For example, a study of the Jukes family by Dugdale shows a long line of descendants traced in prison records, almshouses, and drunkards' graves. The influence of the social environment of a particular family is also important, but must not be confused with its heredity. The only members of the Jukes family, for example, who amounted to anything were those who left their old associations and started life afresh in some new 44° Problems of American Democracy community. Dr. Goddard finds his clue to degeneracy and pauperism in feeble-mindedness, and estimates that one-half of the inmates of almshouses are feeble-minded. Since feeble-mindedness is hereditary, and not acquired, we are able to understand how many cases of pauperism may appear in the same family. This is the theme of his most readable little story of the Kallikak family. Only segregation of the feeble-minded will prevent the propaga- tion of their kind and the passing on to future generations of degeneracy and pauperism. Disease is a most important cause of poverty. Dr. Devine states that seventy-five per cent of poverty is due to disease; not twenty-five per cent as is usually supposed. It is certain that from twenty-five to forty per cent of all cases applying for relief represent a temporary or permanent disability due to sickness. This is the individual expression of such objective causes as unsanitary living conditions, improper housing, bad work- ing conditions, and dangerous trades. Although the importance of intemperance as a cause of poverty has probably been exaggerated, nearly one-fourth intemper- of all cases coming before charity organizations ance - were traced to the ravages of alcohol. The Committee of Fifty, who investigated this subject several years ago, found that over forty-one per cent of the inmates of almshouses owed their condition directly or indi- rectly to alcoholic excess. Before the advent of prohibition, many families lived in want and squalor because the bread winner persisted in spending his income in the saloon. As a destroyer of efficiency alcohol was a frequent cause of unemployment. Intemperance is a subjective cause of poverty, but it has its roots in numerous objective causes The Problem of Poverty 441 such as pernicious social customs, long hours of work, and poor facilities for recreation. Immorality must also be mentioned, for Dugdale places it even ahead of intem- perance as the cause of degeneracy in the Jukes family. The imprisonment of the bread winner is a frequent cause of poverty to his family. Society shelters, feeds, and clothes the criminal, but permits innocent mem- bers of his family to suffer. To remedy this injustice some states have passed laws by which the prod- ucts of convict labor are turned over to their families. Desertion by the head of the family appears in from five to ten per cent of all cases of dependency in our large cities. Children may be abandoned by their parents, or T f Desertion. wives by their husbands. In the case of many destitute families, relatives show a remarkable indifference to their condition. Charity workers find a surprising amount of neglect upon the part of near relations and a failure to help in cases of dependency. Death of the main support appears in from ten to twenty per cent of relief cases. Some form of social insurance for the poor, or a sound life insurance system within their reach, is earnestly advocated. Widows main support. and orphans, however, have always appealed to human sympathy, and funds given by philanthropists have founded numerous institutions for the care of such persons. Charity workers find little difficulty in caring for orphans, for more funds are at their disposal for this group of des- titutes than for any other. Old age is frequently a cause of dependency, and the almshouse is often the final home for the aged. Such a situation is cruelly unfair. Many old persons have been industrious workers and have reared large families. But, 442 Problems of American Democracy now, having outgrown their period of usefulness, they are incapacitated for further work. Old age pensions would lift the stigma of the poor-house from the aged, Old age. ...... who have no means of support for their declining years. Society should at least provide separate and com- fortable homes for the aged, where husband and wife will not be parted and where they will not come into contact with the feeble-minded, the degenerate, and other sub- normal groups found in the average almshouse. Defectives are frequently public charges. The crippled and the blind constitute a large proportion of the beggars upon our streets. At present, the almshouse is Defectives the general depository for most of these varied groups. Special methods of treatment for each class of defectives will be discussed in a later chapter in which this group of social debtors will be carefully analyzed. Shiftlessness and laziness are individual characteristics which may lead to poverty and pauperism. It is esti- mated that from ten to fifteen per cent of all Indolence. ...... cases of distress may be attributed to these indi- vidual weaknesses. However, a number of so-called cases of laziness were found, upon physical examination, to be due to an undervitalized health condition. For example, the shiftlessness of the "poor white trash" of the South was found in some cases to be due to hook-worm. Malaria may play the same role, and poor health and malnutrition may result in a lowered vitality. Again, retarded school children in slum districts were found upon examination to be underfed and anaemic. Environment, however, will not explain every such case; for there are some individuals who are inherently lazy and shiftless. Again, many poor people are in a condition of poverty because of their own The Problem of Poverty 443 improvidence. A lack of judgment prevents their exer- cising a wise economy in applying their earnings to the purchase of food, clothing, and other necessaries. Scar- city of funds also necessitates buying in small quantities and only for immediate consumption. Hence the poor are often over-charged. For these reasons, tactful settlement workers are carefully studying the manner in which the poor spend their small incomes and are seeking to advise them as to what constitutes wise economy. QUESTIONS FOR DISCUSSION 1. Define poverty in its sociological sense. 2. Distinguish between poverty and pauperism. 3. What is your opinion about the final elimination of poverty? 4. Give an estimate of the extent of poverty in the United States. 5. Give an estimate of the extent of pauperism. 6. How has our point of view regarding poverty changed? 7. Why is it important to study the causes of poverty? S. What mistakes did several reformers make? 9. Explain poverty from the standpoint of the theory of evolution. 10. Explain how the causes of poverty overlap. 11. Distinguish between the immediate and the remote, or the main and the contributory, causes of poverty. 12. What two-fold classification do we make of the causes of poverty? 13. Explain the relation of the physical environment to poverty. Give illustrations. Give others not in the text. 14. Give the economic causes of poverty. 15. Give the causes resident in the social environment. Name others besides those in the text. 16. Show how one factor may be both a cause and a result of poverty. 17. What defects of government and of our educational system increase poverty? 18. Explain the relation of degeneracy to pauperism. 444 Problems of American Democracy 19. Is pauperism hereditary if it seems to "run" in the same family in successive generations? 20. Name in order of importance the various causes of poverty resident in the individual. 21. Discuss each. 22. What is often the cause of laziness? TOPICS FOR SPECIAL REPORT 1. The relation of heredity to poverty. 2. The causes of poverty of the "X" family. (A study of some poor family with which you are acquainted. Distinguish between immediate and remote causes). 3 . The alleged improvidence of the poor as a cause of poverty. 4. The amount of poverty in the largest city nearest you. 5. The effects of the World War upon poverty in Europe and America. 6. Economic causes of poverty. (Prepare as complete a list as possible by reviewing the earlier sections of the book.) 7. The effect of prohibition upon poverty. 8. A study of the almshouse. 9. The Jukes. 10. The Kallikak family. REFERENCES Devine, E. T. Misery and Its Causes. Dugdale, R. L. The Jukes. Ellwood, C. A. Sociology and Modern Social Problems. Chapter XIII. Goddard, H. H. The Kallikak Family. Henderson, C. R. Dependents, Defectives and Delinquents. Chap- ters I to IV. Hunter, R- Poverty. Smith, S. G. Social Pathology. Warner, A. G. American Charities. Chapters II to V. CHAPTER XXXIV The Organization of Charity I. History of charity i. Early times 2. Middle Ages 3. England — the poor law 4. America — indoor and outaoor relief: a. The difference b. Relative value 5. Germany — Elberfeld system 6. The modern point of view: a. Its character b. The trend of progress II. The almshouse 1 . General character 2. Special defects 3. Needed reforms 4. The remedies III. Outdoor and private relief 1. The Church 2 Medical charities 3. Private associations : a. Their nature b. Their dangers 4. Charity organization societies: a. Methods b. Justification 5. Principles of relief 6. Friendly visiting in the family 7. Social settlements 8. Care of dependent children 445 446 Problems of American Democracy History of Charity. — Charity in its old sense of alms- giving is a very ancient practice extolled by Hindu, Early Chinese, and Egyptian philosophers.* In early Athens a poor tax was regularly collected, and in Judea the synagogue was the center of relief for the poor. Its successor, the Christian Church, attempted in early times to socialize wealth through a process of com- munism. One of the first officers in the primitive church was the deacon, whose chief duty was to look after the poor of the congregation. Ancient Rome was said to have had asylums for abandoned children and for wounded soldiers. The poor may have sought shelter in the public baths of Rome, as they do at present in our own parks and public buildings. Trajan is reported to have cared for five thousand poor children. The most famous relief in Rome, however, was what was known as " Caesar's bread." This was the name given to the system whereby the poor Roman citizen could obtain food from the public granaries free, or at a very low price. It has been estimated that at the time of Julius Caesar three hundred and twenty thousand persons were registered for the free distribution of grain. Although intended as a social reform by Gracchus, its vicious and pauperizing influence upon the Roman people may be seen in the laziness and immorality of the later Empire. It is the classical example of unwise philanthropy which destroys independence by removing the necessity for work. In the Middle Ages almsgiving was regarded as a method of securing the favor of heaven. The effect upon the Middle giver seemed more important than the result Ages ' upon the recipient of alms. The medieval ascetic spirit founded numerous monasteries which served The Organization of Charity ■ 447 as inns for weary pilgrims and travelers. That riches were associated with sin, and poverty with saintly character, is well illustrated by St. Francis of Assisi and by the Order of Poor Friars. A monastery was usually the center of alms- giving, and indiscreet charity often produced a great increase in the number of beggars who thronged the doors of the beautiful cathedrals. The Church, however, was the only organized force in the Middle ages which attempted to alleviate distress by founding hospitals, asylums, and retreats for children and unfortunates. With the break-up of serfdom, European nations began to pass laws against vagrancy and wandering serfs. The dissolution of the monasteries by Henry VIII „ , , J J England— of England increased the amount of unrelieved the Poor distress. It was not until the age of Elizabeth, however, that the State began to supersede the Church as the dispensing agent of charity. Laws were passed which became the foundations of the famous English Poor Law. The parish was to make a list of its poor, who were to be helped by the compulsory contributions of the more prosperous. The administration of these laws tended to increase pauperism and the consequent expenditure for relief. All the needy were to receive help, and, as almost all laborers were needy, they were entitled to the stipend. This situation was undermining the independence and manhood of the English workman. Again, this condition was being exploited by employers, who refused to raise wages because of the State's supplement to labor's income. It has been estimated that the amount spent for poor relief in 181 8 reached 7,870,801 pounds, or almost forty million dollars, for a population of only eleven million people. In 1832 a royal commission was appointed to 448 Problems of American Democracy investigate the matter of state relief. It was found that a man was often economically better off when rated as a pauper, than when rated as an independent worker. In 1834 a new Poor Law Act was passed. It provided for a central government board and inspectors to examine the work of the local authorities. No state relief was to be given to the destitute, if able-bodied. They must seek the work-house to be built by the union of parishes. The cessation of public outdoor relief was marked by a great decrease in the amount of pauperism. The work-house now became the only institution of public charity. Its deadening character and maladministration have been criticized by many reports and pictured in many works of fiction. Its counterpart, the American almshouse, will be discussed in a later section. By indoor relief is meant the institutional care of the poor supported in almshouses. Outdoor relief is the caring for this same dependent group in their own indoor and homes by gifts of money, provisions, or other relief V necessaries. Indoor relief is a recognized func- Thedif- tion of the modern State, for otherwise indi- Jerence. viduals might die upon the streets. Outdoor relief, however, as a state function, is still a matter of debate. The very helpless should be placed in institu- tions, but the care of those in slight need had, perhaps, best be left to private and individual charity. We have seen the history of public outdoor relief in England and know why it was stopped. In America there has been no consistent national policy. Public outdoor relief may exist in one community and be absent in another. Most of our large cities, like New York and Philadelphia, have abandoned this policy. When it was abandoned in The Organization of Charity 449 Brooklyn, it was surprising to note how the appeals to private charitable organizations failed to show the increase that had been expected. The inference drawn from this fact is that much of the former public outdoor relief had not been needed, or had been unwisely distributed. The Bread Line at the Bowery Mission There are arguments both for and against public outdoor relief. In its favor may first be mentioned its apparent economy. It seems unnecessary to send an individual, or his family, to the poor-house when a slight finan- cial aid will permit living at home. Again, since the disability of the bread winner may be only temporary, outdoor relief often preserves the unity of the family. This system is also more flexible and may be varied DD Relative value. 450 Problems of American Democracy according to the needs of the situation. Much of the ap- parent economy, however, of public outdoor relief has not been a reality. English experience has shown how, like a contagion, the acceptance of relief may spread throughout a community. Again, giving to the poor requires great dis- crimination and an experience in social work not usually found in public officials. In many of our cities political corruption has vitiated its administration. The probability and amount of public outdoor relief has been affected by the size of the pauper vote. A number of German communities have handled the administration of public outdoor relief in a characteristic manner. The best known plan is the Elberfeld Germany — # x Elberfeld system. This is based upon the unpaid personal services of citizens acting in systematic coopera- tion with each other and under a salaried superintendent. There is a thorough examination of each individual dependent, a careful guardianship of him during his period of dependency, and a consistent effort to help him regain his economic independence. Four cases are usually assigned to each citizen almoner, who therefore knows thoroughly the needs of each dependent family. He is empowered to give relief according to a graduated scale prescribed by law. Modern organized charity is the twentieth century development of what was known in earlier times as alms- giving. It differs from its early form as much point of as the modern locomotive differs from the Yts'character P ra iri e schooner. The scientific spirit has brought about as great a transformation in the methods of charity as in the methods of transporta- tion. Poverty is no longer regarded as necessary and The Organization of Charity 451 saintly. It is viewed as a social disease resulting either from a faulty social and economic environment or from individual delinquencies. The* aim of organized charity is no longer the mere giving of alms to relieve an immediate distress which may shortly recur. The causes of poverty are investigated in the hope that many of them may be removed. A list of these causes has already been revealed in the previous chapter. On the physical side, the productivity of the natural environment is being increased and such phenomena as droughts and famines are becoming matters of The trend scientific prevention. Maladjustments in the Qfy?* & ress ,- economic environment are being gradually eliminated, and experts in industrial management are attacking the problem of unemployment. Unfortunately, however, wages inadequate for efficient living still stalk, like gaunt spectres, a land of fabulous riches. The social environ- ment must also be remodeled. Unsanitary housing con- ditions, the congestion of immigrants, and the slums of our cities must disappear from the society of to-morrow. Defects in our governmental and educational systems must also be remedied. The feeble-minded and inherently degenerate must be so segregated that they cease to propa- gate their kind. Individual and social ideals of health and efficiency must be raised to a higher level in order that shiftlessness and indolence may be reduced to a minimum. All this will not be accomplished by any sudden or quick reform, but only by the long, slow process of social evolution guided in a progressive manner by human intelligence. But while these are our ideals for the future of society, we must not neglect the practical problems of distress which confront all civilized societies to-day. 452 Problems of American Democracy The Almshouse. — The poor-house is the fundamental institution in American relief. It cares for the destitute General n °t otherwise provided for, and has been the character. s } eve through which all forms of social derelicts, except the duly convicted criminal, have passed. The almshouse often contains the insane, the epileptic, the feeble-minded, the blind, the deaf, the crippled, the sick, and those destitute of friends. Here mingle old folks and children, men and women, the honest and the dishonest. The general characteristic of the almshouse is therefore the heterogeneous character of its unclassified and unsegre- gated inmates. Another characteristic of the almshouse, as it exists in many communities, is the transient nature of the inmates Special who are admitted and dismissed practically at defects. their own option. The drunkard between sprees and the tramp between seasons have found shelter within its walls. A general exodus of the able-bodied from the almshouse takes place in spring, but many return with the advent of cold weather. Since little work is done, except small jobs about the building, the very group which should be taught habits of steady labor is given an excellent training in idleness. The institutional life is deadening to that very initiative which it should seek to kindle. The administration of the building has often been inefficient, because the remuneration of the superintendent is not always sufficient to attract an able man. As official requisites, affiliations with the political party in power are usually more important than executive ability, or a knowl- edge of social problems and of scientific methods of charity. It was formerly common to pay no stated salary to the superintendent, but to allow him the proceeds from the The Organization of Charity 453 attached farm. This abominable practice led to innumer- able abuses and to the exploitation of the inmates. The assistants were also frequently incapable, and the especially necessary medical service was often of the lowest standard. If any system of inspection was required, it was admin- istered in a most perfunctory, if not corrupt, fashion. The very nature of these evils cries out for reform. The almshouse should not be the "dumping" ground for all the destitute classes of society. It should be used Needed merely as the temporary clearing house for vari- reforms - ous groups of defectives to be assigned later to special institutions. The feeble-minded should be put under the permanent custody of a special institution; the blind, especially the young, should be sent to their own schools ; and the tubercular inmates should be placed in sanitariums or in special hospital wards. The building of separate insti- tutions requires great expenditures of public funds, but it is imperatively needed. Children should never be per- mitted to grow up in this environment, and old folks, like- wise, are deserving of better treatment. Again, the alms- house should not be so easy of access and of departure. Paupers should be regarded as socially diseased and an attempt made to reestablish in them a normal life and pur- pose. In comparatively few states are they deprived of the right to vote, with the result that at elections they go forth to swell the majority of the political organization in power. Women frequently use the almshouse as a mater- nity hospital, in which are born the illegitimate and feeble- minded. In order to establish the almshouse on a scientific basis, careful records of admission and discharge should be kept so that each case may be studied individually. At present, 454 Problems of American Democracy few accounts are filed except those dealing with financial expenditures. The almshouse, which should provide a great The amount of valuable clinical material, has offered remedies, little i n f orma tion f wor th for the student of social conditions. Work of sound economic or educational value should be afforded those inmates that are physically or mentally capable of such labor. The administration must also be reformed through efficient governmental super- vision. Private institutions, which assume the respon- sibility for the lives of inmates and which appeal to the public for support, should not be exempt from government inspection. Salaries should be adequate and competent officials appointed. An efficient corps of medical and social workers should be added according to the size and needs of the institution. The best system of inspection seems to be that of a commission of responsible persons appointed by the governor, without pay, but employing a salaried secretary and a body of paid inspectors. A separate sal- aried board should be charged with the centralized business administration of the various state institutions, whose activities must be correlated. Outdoor and Private Relief. — In general it would seem that institutional, or indoor relief, should be under- The taken by the State. Many private and religious Church. associations, however, maintain their own homes, asylums, and other charitable institutions. Many also receive large state appropriations, although in most cases there is a legal proviso that the institutions so subsidized must be of non-sectarian character. Outdoor relief, on the other hand, has been left for the most part to private charitable associations. Many of these agencies for the relief of the poor in their own homes are administered in The Organization of Charity 455 connection with the activities of various church organiza- tions. There are in America three main divisions — the St. Vincent de Paul Societies of the Roman Catholic Church, the United Hebrew Charities, and the various societies of the different Protestant sects. There are also other independent religious organizations for philanthropic work, some of which are most estimable. It is nevertheless true that sometimes even the most sincere church charity is given in a haphazard fashion. Professional beggars are known to have taken advantage deliberately of numerous church societies, which make but little investigation of the ultimate effects of their donations. Furthermore, different sects should cooperate, rather than discriminate, in their charitable activities. The unfortunate man who meets with an accident upon the street is driven to the nearest hospital, Jewish or Gentile, and no questions are asked regarding his creed. More of the same spirit in charity work is needed. At present, however, it would seem that distinct charity organizations based upon religious sects have certain inherent advantages. Each religious organi- zation understands better, and meets more effectively, the needs of its own group. It is also natural for dependents to seek help first from members of their own religious sect. The most direct aim of medical charities is the relief of the physical distress of the poor. The gain is social as well as individual, for the community is thereby Medical spared the expense involved in the care of an chanties - otherwise dependent member of society. Missionaries have found that medical assistance is the quickest way to reach the hearts and minds of those among whom they work. Social workers in our own slums have found this fact to be equally true. Many of our large city hospitals 456 Problems of American Democracy have a social service department, whereby the social work- ers supplement the work of the surgeon and nurse by follow- ing up the cases discharged from the hospital as cured. Medical charity is also a means of diffusing information regarding health, hygiene, and sanitation. Organized medical charity protects the public health. A municipal hospital is primarily designed to care for contagious dis- eases, and similarly adequate provision should be made for tubercular patients. Maternity hospitals or wards have been established for the poor, while orthopedic hospitals correct the deformities of growing children. It is also pos- sible for the poor to have their eyes examined free and thus to correct faulty vision. Finally, there are free dis- pensaries for the dressing of wounds and for the care of other physical ills, as well as free wards for undergoing surgical operations and for treatment during serious illness. Although medical charities have been taken advantage of by many individuals who are able to pay for medical aid, their benefits far outweigh any well-founded objections charged against them. Private charitable associations are especially needed when experiments are to be tried and pioneer work attempted. Much of the charitable work that associa- is now done by government institutions, was ™™r e first undertaken by a group of individuals who proved, by practical experimentation, what could be done along certain lines. All kinds of philanthropic work are carried on by private associations. There are homes for orphans, for crippled children, and for the aged, founded by benevolent individuals. There are also private asylums for certain classes of defectives for whom the State has made no adequate provision. There are an infinite The Organization of Charity 457 number of large and small associations for the relief of the poor in their own homes. Free employment bureaus, housing commissions, and settlement houses in poverty- striken quarters have been founded by private philanthropy. All honor should be accorded such public-spirited citizens and the spirit of altruism which impelled them. Such institutions represent one of the noblest characteristics of modern civilization. Private charities, however, have their own peculiar dangers. They are so easily formed that there is a con- stant temptation to multiply them. It there- Their fore happens that some fields are overcrowded, an ^ ers - while others are neglected. Again, the funds of a small association are inadequate to carry on the work proposed, but would be effective for a stronger organization doing similar work. Among these numerous good societies, it is easy also for fraudulent ones to flourish and to collect money for supposedly benevolent purposes. Again, money may be spent sincerely, but foolishly, according to the eccentricity of the donor. Public-spirited individuals, who wish to make bequests, would do well to consult some official in the local society for organized charity. In this manner a good perspective of the field would be obtained, as well as expert advice from a professionally trained social worker. Charity organization societies — or similar associations known by slightly different names — exist in most of the large cities of Great Britain and the United Charity States. The pioneer American organization in organiza- this field is the Society for Organizing Charity, societies: established in 1877, in the city of Buffalo. Its purpose may be regarded as that of a central 458 Problems of American Democracy clearing house for all forms of outdoor relief. Its aim is not so much to furnish material aid to the destitute as to help restore them to economic independence. The causes of poverty are studied in order that conditions in the environment may be improved. Cases requiring imme- diate need are referred to a particular charity to care for them. Thus, the central organization acts as a directive agency rather than as a means of distribution of material help. If an individual is out of work, employment is sought at one of the employment agencies; if sick or diseased, admission is secured to a free ward in a hospital or in a special asylum. If a family seems in need of help, the society sends a trained worker to make a careful study of the case, which is duly recorded in a card index system. Recommendations are made to benevolent societies likely to give aid, or the aid of the former employer, of relatives, and of friends is solicited in order to help the unfortunate to regain his economic independence. The Society for Organizing Charity has been criticized because so small a proportion of its funds is spent for actual relief and so large a proportion for Justification. . red tape. Again, some object to its alleged sense of superiority which seeks to direct other societies. Answers to these objections are unnecessary. In the matter of real social service there can be no such thing as an assumption of superiority. The need of organization and investigation is so great as to make imperative a central society for that particular purpose . Its case records are open to other charity societies which seek to give aid, but which have neither the time nor ability for investigation. The so-called "red tape" prevents the success of impostors. Hence, all individuals or private associations for the dis- The Organization of Charity 459 pensing of charity will do well to seek this central society for information as to the relative needs of their various applicants. The Society for Organizing Charity seeks also to prevent overlapping and waste of energy. If all the charities of a city would report to this one central clearing house all that they are doing, they could easily learn from how many sources any given applicant is receiving help. Beggars upon the street should be referred to this society, and solicitors for funds should produce its written endorse- ment before receiving favorable consideration. The first principle of relief would seem to be the securing of adequate knowledge before giving aid to the applicant. Is the family in actual need, or is it seeking to Principles live as a parasite upon the community? What of rehef - kind of aid and what amount is needed? The habit of indiscriminate almsgiving on the street is a most pernicious practice. Many beggars are impostors, while others should be placed in special institutions for defectives. It is wise to remember that indiscriminate help may eventually injure, rather than aid, the recipient. In the second place, the aim of relief should be to secure as far as possible the eco- nomic independence of the needy. Thus, the remote cause of poverty must be removed, not merely the immediate dis- tress. The terms ' ' worthy and unworthy ' ' should be replaced by "needy and not needy." No relief should be given to those who are capable of supporting themselves. In some cases discipline of the applicant is needed rather than any relief. Legal measures must also be taken in such cases as that of the husband who deliberately deserts his wife and children. A third principle of relief is to teach the helpless how to help themselves, rather than actually to help them in the most direct manner. A fourth principle of scientific 460 Problems of American Democracy relief is the careful supervision of the recipient of charity. This is well done by what is known as "friendly visiting," a principle to which separate consideration will be given. In conclusion, let it be stated that scientific charity does not seek to do less but more for the poor. It might seem, from what has been said, that organized relief tends to suppress the impulse of generosity. Nothing, however, could be farther from the truth; for scientific charity simply seeks to make relief more effective by a better direction of its usefulness. Thus there arises a science of philanthropy which emphasizes service rather than mere alms-giving. In order to investigate the cases, and to supervise the work of organized charity, a corps of social workers is necessary. These are known as "friendly vis- Friendly itors." They do more than merely supply food visiting in . . the family and clothing to the needy. Their aim is the rehabilitation of the family life and the restora- tion of normal standards of health, efficiency, and morality. This new profession of social service requires infinite tact, sound judgment, common sense, an attractive personality, and a considerable knowledge in a particular field. A knowledge of local means of medical relief, of laws of land- lord and tenant, of hygiene and food values is essential to the success of such work. The friendly visitor must become personally acquainted with the individuals in the family and must not pose as the agent of a charity organiza- tion. Personal supervision of the dependent and his family has been the secret of success of the Elberfeld System. Friendly visiting has been an essential part of the work of inmates of settlement houses established in the slum districts of various cities. Hull House in Chicago, for The Organization of Charity 461 example, has been a center of ennobling influences radiat- ing throughout a very dark section of the city. Open house is maintained and various forms of recrea- social set- tion and games appeal to the young and old. tlements - The spirit is fraternal and the inhabitants of the section are not dealt with in a patronizing manner. Higher ideals of morality, of family life, of industrial efficiency, and of personal health and cleanliness are continually upheld. Advice is not superimposed, but given incidentally wher- ever possible. Such a social settlement ministers to a much larger group than paupers and dependents; for many inde- pendent and self-respecting people of the poorer class are helped by such means to higher standards of living. The social settlement not only acts as an antidote to the dangers of the big city, but also offsets the baneful influence of the streets. Police magistrates and the juvenile courts have recognized the value to the delinquent child of such insti- tutions. In conclusion, one word may be said concerning the care of dependent children. No child should be permitted to remain for any length of time in the poor-house. 1/3XG or Unfortunately many orphanages are but little dependent better; for the institutional atmosphere of such places is deadening to the growing child. The cottage system, consisting of a number of small houses each under a house mother, is immeasureably superior to the insti- tutional plan. The securing of homes in real families is undoubtedly the best plan, although it requires great care in selection. Since it is fairly easy to secure adoption, some method of visitation should be maintained afterward. The child of the depraved home presents a more complex problem than the orphan. Where great cruelty is prac- 462 Problems of American Democracy ticed, or where the parents are immoral or habitually intoxicated, the courts may take the child out of the home and place it elsewhere. This is only done in extreme cases, because one important principle of relief is to keep the fam- ily intact and the child under the influence of its mother. For that reason, the state of Illinois inaugurated the system of pensioning widows with children. Under such a system, the poverty-stricken mother is not compelled to part with her child whose support might otherwise have been prob- lematical. The opponents of this law maintain that it cannot be administered without abuses. Day nurseries have been established in some districts, where poverty compels mothers to work for long hours in factory, shop, or domestic service. While this plan is a dangerous invita- tion to many to shift the care of their children from the home to the nursery, the only other alternatives are to confine the little ones in the close rooms of the tenement or to allow them to roam the neighboring streets and alleys. QUESTIONS FOR DISCUSSION 1 . Tell of the effects of the free distribution of grain in Rome. 2. What was the medieval attitude toward charity? 3 . Explain the effects of the English Poor Law. 4. Give the arguments for and against public outdoor relief in America. 5. What has been its history in this country? 6. Why do you think it has succeeded in some German cities? 7. Describe the Elberfeld system. 8. How does the modern point of view regarding poverty and charity compare with the older? 9. What is the outlook for the future? 10. What are the chief characteristics of the almshouse? 11. What reforms can you suggest? 12. Discuss the strong and weak points of church charities. The Organization of Charity 463 13. What charitable associations have you ever seen at work? 14. Justify medical charities as a community function 15. What are some dangers of numerous private charitable associ- ations? 16. What is the purpose of the Charity Organization Society? 17. Show its relation to other charitable organizations. 18. Why is the work of a "friendly visitor" difficult? 19. Why is it necessary to investigate cases and why does the dependent family need supervision? 20. When is it necessary to remove children from their homes? Is this a usual policy? 21. What should be your attitude toward beggars upon the street? TOPICS FOR SPECIAL REPORT 1. The charitable work of the medieval monks. 2. The charity work of your church or club. 3. The work of your nearest Society for Organizing Charity. 4. Outdoor relief in your community. 5. The work of Hull House or some other social center. 6. The work of some orphanage. (A personal visit should follow the study of the institution's published report.) 7. How a group of students might best cooperate in some form of valuable- social work. 8. Local laws upon begging and their enforcement. 9. Principles of scientific relief. 10. The work of Herbert Hoover during the World War. REFERENCES Addams, J. Twenty Years at Hull House. Devine, E. T. Principles of Relief. Devine, E. T. The Family and Social Work. Henderson, C. R. Dependents, Defectives and Delinquents. Part II. Henderson, C. R. Modern Methods of Charity. Mangold^ G. B. Child Problems. Book V. Richmond, M. E. Friendly Visiting. Smith, S. G. Social Pathology. Warner, A. G. American Charities. CHAPTER XXXV The Problem of Crime I. Nature of crime i. Its character: a. In early days b. In modern times 2. Crime and the law: a. Early development b. Changing social standards 3. Extent of crime 4. Cost of crime 5. Alleged increase II. Causes of crime 1. Environmental: a. Physical environment b. Economic environment c. Social environment: (1) Density of population (2) Family life and nationality (3) Changing social conditions d. Defects in government e. Defects in education 2. Individual: a. Hereditary traits b. Acquired traits c. Age and sex 3. Preventive measures III. Classification of crimes and criminals 1. Classes of crimes 2. Classes of criminals 3. An old theory 464 The Problem of Crime 465 Nature of Crime. — The advance of civilization has been marked by greater security of life and property. The function of the State in whatever form it existed It was to protect the members of the group, not character: 1 r 4. 'J • U 4- 1 t Early days. only from outside invasion, but also from unsocial individuals within. The growth of association branded as criminals those who refused to cooperate in pre- serving the social order. The "King's Peace" was the first expression of the growing police power of the State. Early conditions, in comparison with modern, presented a greater amount of turmoil and confusion. In ancient Rome, gangs of cutthroats and freed gladiators were hired for the work of assassination. The cities of medieval and modern Europe. were notoriously unsafe. The carry- ing of rapiers became a social custom founded upon neces- sity. As late as the reign of Queen Anne, the narrow, unlighted streets of London were harassed by foot-pads and "gentlemen" who played "pranks" upon their vic- tims. Outlaws, like the fabled Robin Hood, were so numerous in the rural districts as to make travelling unsafe. Not only were piracy and smuggling common, but the government itself resorted to the press gang in order to recruit naval enlistments. Modern society has been made much safer by the repres- sion of such disorders, so that in the course of centuries there has been a great decrease in the number Modern of brutal and serious crimes. While numerous Umes ' individual cases of cruel crime still exist, they are not nearly so common and flagrant in character. Modern society, however, has a new type of unsocial individual in its midst, more polished and less brutal, but equally dangerous. Professor Ross well describes him in "Sin and Society." EE 466 Problems of American Democracy The complexity and organization of twentieth century society permits him to work at long range and with less fear of detection. Instead of running a dagger through his victim, the modern criminal may supply impure milk, or adulterated food, with the same deadly result. Or, rather than loot a house and carry off the goods, he may wreck financial undertakings and rob innocent stock- holders. Although the old brutal crimes are therefore not so numerous, a new type of refined criminal has sprung into existence. Hence the development of commerce and industry has made necessary the enactment of new criminal laws. The simplest definition of crime is that of violation of the law. Crimes are wrongful acts against society, or against individuals, punishable by legal penalty. At Crime and , . . , -, . , the law: one time, crime was regarded simply as an Early dead- offense against the individual affected. The opmenl. ° aggrieved man or his family sought vengeance against the offender without the intervention of the group as a whole. Gradually, however, the idea grew up that crimes were offenses not only against individuals, but also against society. The newly established social order was regarded as being threatened by such unsocial individuals. Therefore, the political unit, whether in the form of the patriarchal family, the tribe, the feudal group, or the nation was forced to meet its own problem of social control. The group, not the individual, thus came to punish crime. To this day, however, torts require the initial action of the individual, rather than the State, for their redress. In order to define and punish crime it was found necessary to formulate a body of law, written or unwritten, explain- ing what should constitute deviations from the normal The Problem of Crime 467 standard of conduct. A good idea of the civilization of a people, or of an age, may be obtained from its code of laws. A comparison of the Twelve Tables of early Rome with the elaborate Code of Justinian illustrates one phase of the social progress attained during the intervening period. The legal code reflects not only the degree, but also the type, of civilization. Each society punishes most severely those crimes which threaten its particular type „, x J *■ Changing of social organization. In a theocracy bias- social standards. phemy, and in an absolute monarchy, Use majeste are the great crimes against the State. In an industrial society new crimes, like the falsification of records and the forging of checks, must be defined in the legal code. As civilization has advanced, the normal standard of conduct has risen. Crime will always be present in society because there will always be those who fail to meet the constantly rising standards of conduct. Like poverty, crime is some- what relative in character. Laws, as the legal expression of the group standards of morality, must reflect the popular will. Statute books must therefore be kept abreast of the changing social conscience. It is unfortunate to have obsolete laws upon the statute books, and so-called blue laws should either be enforced or repealed. Again, new laws should be passed to express new social standards of public opinion. Otherwise, individuals may be held morally guilty by the community, but their actions may be entirely within the law. The social conscience may see little difference between unregulated child labor and slav- ery, or between certain dangerous trades and murder. But this subjective estimate of individual action is not sufficient. Public opinion must express itself in laws, and, to secure the enforcement of these laws, the social conscience must 468 Problems of American Democracy be educated to the new standard. This process of educa- tion should precede the legal enactments which, otherwise, will remain unenforced. Prohibition, for example, will not become truly effective until it reflects everywhere a new standard of social morality. The extent of crime is difficult to determine, for the number of prisoners convicted and sentenced represents Extent of but a fraction of the total number of criminals, crime. Many are not even apprehended, while others are acquitted because of a lack of convincing evidence. Our estimates can be based only upon the number of sen- tences rendered, or upon the number of persons actually in confinement in a given year. In the United States, before the War, the number of annual commitments approximated the half million mark. The number of per- sons under sentence was about a third of that number. A special prison census reported for one year a little over two thousand convictions for homicide, while the actual num- ber of such crimes committed was several times that figure. Indeed, the annual homicide rate in the United States for the opening years of the twentieth century was between six and seven thousand. England, on the other hand, averaged between three and four hundred such cases. Mr. Eugene Smith estimated some years ago that in the United States there were upwards of a quarter of a million Cost of persons who made their living wholly or partially crime. ^y committing crime. To maintain these crim- inals it cost the country $400,000,000 annually, while another annual expenditure of $200,000,000 was necessary for their trial and conviction. This total of $600,000,000 was about the equivalent of the annual sum spent at that time for public education in the United States. This esti- The Problem of Crime 469 mate of the cost of crime would probably be conservative for the present time. The alleged increase in crime in recent years is difficult to determine because standards of conduct have not remained constant. New laws have been added, Alleged and new offenses created, which did not exist increase - previously. Moreover, the number of commitments and the number of crimes are not identical. Again an apparent increase of crime may mean merely that the law is being more strictly enforced. There also exists a great dis- crepancy between the laws of the different states. It would seem, however, to some writers that there has been an increase of crime in the United States. This assertion is based upon the fact that the prison population has increased proportionately more rapidly than the total population. Other writers, however, take a different view of the matter. European statistics, before the World War, did not show any decided increase of crime. If any- thing, a slight decrease was noted in some countries of continental Europe. England, whose criminal procedure is excellent, showed a considerable decrease in the number of crimes committed. With the advent of the World War, however, began that spirit of recklessness which eventually resulted in a temporary spread of crime throughout the whole civilized world. Causes of Crime. — Both in number and character the causes of crime resemble those of poverty. The same set of circumstances that may make one individual a pauper make another a criminal. The causes mental: of crime lie both in the environment and in the ph y. stcai environment. individual. On the environmental side, there seems to be a generally accepted opinion that crimes 470 Problems of American Democracy against person are more common in southern countries, and crimes against property are more prevalent in northern lands. Similarly, in the same country crimes against property, such as burglary, increase in winter, while those against persons, like murder and assault, show an increase in spring and summer. Curves of the increase and decrease of crime which have been plotted graphically show this variation according to climate and season. Weather influ- ences also have a decided influence upon conduct, as all individuals in charge of large groups have noticed. War- dens in prisons and asylums note a decided difference in the conduct of the inmates upon clear, crisp, windy days and upon damp days with high humidity. The economic causes of crime are quite similar to those of poverty. Individuals react differently to the same set of Economic causes. Unemployment may drive one man to environment, g^i^ anc } another to beg. Inadequate wages may reduce one woman to a standard of living below the poverty line, while another of weaker will may become a moral delinquent. Throughout this discussion, the student should review the economic causes of poverty and observe how they are applicable to crime. Conditions in large cities are conducive to crime, for here social ills and economic maladjustments are intensified. Social Glaring contrasts between poverty and riches environment. are temptations to illicit gains. Here bad asso- ciations are easily formed, for the criminal as well as the pauper group gravitates toward the city. Gangs of thieves make their quarters in congested districts, like those de- picted in Dickens' story of Oliver Twist and in similar tales of to-day. After long monotonous hours of toil, immoral amusement places are sought for relaxation as an escape The Problem of Crime 471 from crowded tenement houses. The city should therefore furnish wholesome recreation centers, which may compete with the vicious theatres and dance halls. Motion pictures, too, should be censored so that wrongful ideals may not be upheld before their audiences. All these conditions are typical of the city, which represents a great density of popu- lation. At the other extreme, are isolated, sparsely settled communities which are also characterized by increased criminality. Note, for example, the lawlessness of frontier life. The regions between these two extremes of density of population are least subject to crime. The family should be the chief agent in the socialization of the individual. Demoralized homes, which cannot per- form this function, furnish an undue proportion of criminals. Neglected children and those with false social standards seem inclined toward criminal careers. Eighty-five to ninety per cent of delinquent children in reform schools come from bad homes. On the other hand, a healthy family life is antagonistic to crime. The proportion of unmarried to married men is also greater in the prisons than in the general population. The criminality of the negro is from four to five times as high as that of the whites. Again, children of the foreign born, rather than the immi- grants themselves, show a greater proportion of criminality. The South Italian, however, is often prone toward serious crimes, and the Irishman toward minor offenses. Social drinking in the form of "treating" was formerly a bad social custom, and the saloon for many a weak indi- vidual was the door to the jail or to the almshouse. The effect of prohibition upon the crime rate offers an interest- ing field of investigation. The working out of this great social reform was at first beset by the abnormal conditions 472 Problems of American Democracy which prevailed in the years following the World War. Commitments for minor offenses, however, such as dis- orderly conduct, seemed to decrease. Advocates of pro- hibition claim a considerable decrease in the population of the almshouse and the county jail. On the other hand, the illegal sale of liquor breeds contempt for the law which is dangerous to society, for the moral attitude of the com- munity on this question is vitally important. The number of serious crimes showed such an increase in the period immediately following the War that attempts were made to show a causal relationship between crime and war, as well as between crime and prohibition. It has been argued that repeated scenes of destruction and bloodshed develop a callousness to the loss of life and property. Again freedom from military discipline and restraint may have a decided reaction upon the morally weak. Hence the carrying of concealed weapons is vicious and dangerous to society. On the other hand, the elaborate display of wealth is a suggestion to crime. Defects in law and government increase the amount of crime. If the police are lax or criminal in the performance Defects in °i duty, crime will flourish, and the criminals government. w ^\ k e gj ven political protection by the very offi- cers whose duty it is to enforce the law against them. This is the story of numerous vice commission reports. The legislature and the courts should cooperate to make justice swift and certain. In England crime has been reduced by this method. A faulty prison system, under which first offenders mingle with hardened criminals, is also productive of crime. Defects in our educational system may indirectly be the cause of crime, just as they are of poverty. Illiteracy is The Problem of Crime 473 high in the jails, as well as in the almshouses, and lack of industrial training is equally apparent. The Defects in teaching of a trade in early years might well have e ucaHon - afforded idle hands an opportunity for honest work. The causes of crime residing in the individual may be hereditary or acquired. Crime is no more hereditary than is pauperism, although the physical or mental degeneracy back of it may be inherent, causes: This degeneracy may be transmissible and ^f ltary thereby cause certain families to show criminal records. We do not believe, however, that there is a fixed criminal type, but that criminality is often the evidence and result of inferior biological stock. Investigations of criminologists show that criminals in general present a greater number of physical abnormalities than the average man. Imbeciles, the insane, and epileptics constitute an undue proportion of the criminal class. Judges have found it difficult to distinguish between crime and insanity, and have confessed doubt as to whether the criminal should be committed to the penitentiary or to the asylum. Mental degeneracy, like feeble-mindedness, may "run" in families, producing criminals, paupers, drunkards, and imbeciles. The criminal who is inherently degenerate may have offspring likely to follow in his footsteps. But the criminal who becomes so because of his environment will be apt to have normal offspring. However, if these children are surrounded by bad influences in early childhood, it is easy for them to become criminals. The cause lies not in heredity, but Acquired in the bad social environment, from which they traits ' should have been freed. Acquired traits are the effects upon the individual of the social and economic environ- 474 Problems of American Democracy ment in which he lives. These are not usually trans- missible. Just as normal conditions produce normal men, so an abnormal and unhealthy environment may produce the criminal. Intemperance, for example, is an abnor- mality brought about by the evils of environment. Some years ago the Committee of Fifty found that alcohol was the chief cause of crime in thirty-one per cent of all cases investigated, and a contributory cause in nearly fifty per cent. Bad company and evil associations also loom large in many criminal careers. Other individual factors affecting crime are age and sex. Practically all crime falls within the active period of life, Age and between the ages of twenty-one and forty. The average age of men in penitentiaries is often between twenty-seven and twenty-eight years. Sex is also important, for the prison population is largely made up of males. Easily nine-tenths of those sentenced to imprison- ment are men. In order to reduce the amount of crime in society the environment must be improved by the removal as far as Preventive possible of its causes. Since the reformation of the criminal is difficult, the prevention of crime should be the aim of society. Three conditions are necessary. In the first place, the evils in the environment must be corrected. Furthermore, each child should be afforded proper development through the normal process of education and socialization in the midst of healthy surroundings. A third condition is also necessary. There must be enough control exercised by society over heredity to eliminate, by practical eugenic measures, the inherently degenerate in society. Classification of Crimes and Criminals. — Serious The Problem of Crime 475 crimes are known as felonies, but the less important, like vagrancy, are called misdemeanors. A great difference in criminal laws exists among the several states, classes Furthermore, their legal codes have vary- ofcnme - ing degrees of ' punishment for the same offense. This condition frequently works injustice, as well as confusion, in the administration of criminal law. Another distinction should be made. Vice is an act which injures the individual himself, but not necessarily society, which crime does affect. Our present social organization is so complex, how- ever, that this distinction has lost much of its original value. Drunkenness, for example, is becoming as much a crime as a vice. Sin is distinctive as an offense against God's law rather than man's. A most fundamental dis- tinction in classifying crimes is that between crimes against persons and crimes against property. Another type of modern offense represents crimes against the social order, for civilized society seeks to supervise numerous actions — - from the regulation of transportation to the issuance of marriage licenses. Crimes may be classified subjectively as well as objectively. Thus, there may be (1) crimes by accident; (2) those of passion; (3) those of premeditation. There are numerous classifications of criminals, but the most useful is the simple division of criminals into three classes: (1) the born; (2) the habitual; and classes of (3) the occasional. The born or instinctive cnnunals - criminal is the individual of bad heredity and of degenerate stock. He may be insane, feeble-minded, or afflicted with other hereditary handicaps. The habitual criminal has a normal heredity, but has been perverted by an evil environ- ment. Hence his criminality is acquired. With the devel- opment of bad habits and a vicious point of view, it is 476 Problems of American Democracy almost as difficult for him, as for the born criminal, to lead an upright life. Both these types are repeaters before the bar of justice. The occasional criminal is rather the single offender. He has committed a crime in passion, or under the force of circumstances, and is most capable of future reformation. The great Italian criminologist, Caesar Lombroso, expounded the theory of a certain definite criminal type. An old To this type, according to his theory, belonged theory. most of the individuals who had committed serious crimes against society. It could be recognized by physical characteristics, such as skull and jaw formation. According to this theory certain signs of mental degen- eracy, such as insensibility to the sufferings of others, were supposed to be present. This class was indifferent to social approval or disapproval, and the fact of guilt created no sense of shame. This degenerate criminal class was regarded as resulting from atavism or reversion to type. A primitive man had been born into modern civilized society. QUESTIONS FOR DISCUSSION 1. Why has an increase in our criminal code of laws become necessary? 2. What acts are now regarded as criminal which were not so regarded in the past? 3. Name some offenses which were formerly regarded as criminal but are no longer so regarded. 4. How do the crimes of the unsocial individual of to-day differ from those of the past? 5. Define crime. 6. Who punished crime in early society? 7. Why does crime persist with the advance of civilization? 8. Explain how law is the legal expression of the group standard of conduct. Is it fixed or variable? The Problem of Crime 477 9. Why is the extent of crime difficult to determine? 10. Give an estimate of the size of the prison population of the United States. 11. What racial groups are conspicuous? 12. Estimate the cost of crime in the United States. 13. Is crime increasing? 14. What influences in the physical environment affect conduct? 15. Why is crime prevalent in the city? 16. What practical municipal reforms can you suggest? 17. How is a healthy family life a preventive of crime? 18. Name some vicious social customs. 19. Show how defects in government and political corruption increase crime. 20. Show the relation between crime and hereditary degeneracy. 2 1 . Show the relation between crime and age ; between crime and sex. 22. What should be the three aims of preventive measures? 23. Distinguish between several kinds of crimes. 24. Give a simple classification of criminals . 25. Do you believe in a criminal type? Why or why not? TOPICS FOR SPECIAL REPORT 1. Prohibition and the crime rate. 2. War and the crime rate. 3. Crime and city life. 4. Crime and the negro. 5. Crime and the immigrant. 6. The effects of climate and seasons upon crime. 7. Lombroso and the early school of criminologists. 8. Acts regarded as crimes in England from 1750-1850. 9. Make parallel lists of the causes of crime and of the causes of poverty. 10. Eugenic measures for the prevention of crime. 1 1 . The psychology of crime. REFERENCES Ellis, H. The Criminal. Ellwood, C. A. Sociology and Modem Social Problems. Chapter XIV. 478 Problems of American Democracy Hayes, E. C. Introduction to the Study of Sociology. Chapter XXXII. Henderson, C. R. Dependents, Defectives and Delinquents. Part IV. Chapters I, II and V Ross, E. A. Sin and Society. Smith, S. G. Social Pathology. CHAPTER XXXVI The Treatment of the Criminal I. Criminal procedure i. Historical development: a. Private warfare b. Medieval trials c. King's court d. Jury trial e. A body of law 2. Modern problems: a. The legal machinery b. Defects in jury system c. Suggested reforms II. Punishment of crime i. Point of view: a. Vengeance b. Prevention c. Reformation 2. Early treatment: a. Former cruelty b. Prison reform 3. The present prison system: a. The county jail b. Need of special institutions c. A plan suggested d. Administration: (1) Prison life (2) Discipline (3) Records (4) Prison labor 480 Problems of American Democracy 4. Advocated reforms: a. Indeterminate sentence b. Parole c. Substitutes for imprisonment d. Abolition of capital punishment 5. Delinquent children: a. Juvenile courts b. Reform schools Criminal Procedure. — In the patriarchal, tribal, and feudal stages of society the aggrieved man's cause was „. . . championed by his family, tribe, or feudal lord. develop- This method of settlement caused endless blood ment: • • Private feuds, like those which existed between the warfare. Arabian tribes, or the clans of the Scotch high- landers. The injury was avenged with interest by the per- petration of a similar wrong upon the aggressor himself or his group. Thus, the strife and confusion continued in the well-known feudal warfare of medieval Europe. Such was also the condition in ancient Israel where Moses instituted cities of refuge in which homicides were temporarily safe from the avenger. The altars of ancient temples and of medieval cathedrals were protecting sanctuaries. Grad- ually, the power of the central government increased and took into its own hands the restoration of order and the punishment of crime. In time, the injury came to be mea- sured in terms of money value. This was known as wergeld (worth money) among the Anglo Saxons, and the code of King Alfred regulated minutely how much was to be paid for the loss of an eye, a hand, or a finger. A famous method of trial in the Middle Ages was that by ordeal. The religious faith of the period was respon- sible for the belief that God would declare, in some miracu- The Treatment of the Criminal 481 lous way, the innocence or guilt of the accused person, who was required to place his hand in boiling water or to walk over red hot plough shares. If after three Medieval days, the wound was regarded as healing, the s ' accused was considered innocent. Otherwise he was guilty; for God had refused to protect him. A more rational method was that of compurgation. The accused might bring his friends to swear that they believed his oath. If the number of compurgators was not sufficient, he must undergo the ordeal. The word of a noble was equal to that of several thanes, whose testimony in turn outweighed that of ordinary freemen. William the Con- queror introduced into England from the continent the wager of battle. Each party, like Rebecca in Scott's Ivanhoe, chose a champion, and the two warriors fought out the cause in the presence of God and man. In the Middle Ages there were three kinds of courts — those of the nobles, those of the Church, and those of the king. The Church tried all sins, such as heresy, The king's and the condemned were handed over to the court " State for execution. Many other matters, like those per- taining to marriage and divorce, fell within her jurisdic- tion. Each noble lord also maintained his own court and possessed dungeons in his castle for those vassals who refused to obey his law. As feudalism declined, most cases came gradually into the king's court. The accused received a fairer trial from the royal justices upon the circuit than from the feudal courts. As the fines and penalties con- stituted a considerable source of income, the jurisdiction of the king's court became gradually extended. The baronial courts came to be things of the past. Certain streets, houses, individuals, days, "and other such circum- FF 482 Problems of A merican Democracy stances were declared to be under the king's peace, and all cases thus arising were to come before the king's court. As legal development went on, there came into exist- ence two kinds of juries — the petty and the grand. The former tried the criminals whom the latter had Jury trial. . . previously indicted or held for court. The king's court in England developed trial by jury as a more suitable method of administering justice than the old medieval customs just described. The travelling royal justice, who was to sit upon the case, issued an order for a number of men to investigate the offense and render a sworn verdict. In a criminal case, they were to state whether they thought the man guilty or not, and, in a civil case, they were to designate which of the two parties had the better claim. Gradually a distinction was made between those who knew the facts and came to be regarded as witnesses and those who were unacquainted with the facts. The latter were apt to be more impartial and were called to pass judgment upon the case. These constituted the germ of the petty jury. The grand jury, as well as the petty jury, is associated with the reign of Henry II of England. At that time there had been a great increase in the number of crimes, and the criminals had not been apprehended. Hence,. Henry II provided that, when the king's justice came to a county, a number of men should be selected and required to give upon oath the number of crimes committed in that locality and the names of those suspected. The State, and not the aggrieved individual, thus came to be the prosecuting party, and the grand jury came into existence for the indictment of criminals. The sheriff of each county was required to raise the "hue and cry" against the offender and could demand the assistance The Treatment of the Criminal 483 of all good citizens in securing the arrest of the supposed criminal. The justices sitting as a combined body, or the individual members upon the circuit, kept a record of the cases settled and the decisions rendered. These may be a body regarded as the formal legal expression of the ° ilaw - unwritten customs and moral ideas of the community. They were generally logical, consistent, conformable to custom, and came to be known as the "common law." This body of law was centuries in the making and to-day lies at the bottom of English jurisprudence and its Amer- ican offspring. In addition to the common law there is also statutory law. This is made up of numerous formal enact- ments passed, in England by Parliament, and in our own country by the national Congress and state legislatures. Although the federal courts punish offenders against national laws, the great volume of criminal cases, as well as civil, come before the state courts. Each state is divided into judicial districts, which cor- problems: respond more or less with county lines. The ^/|f^ state judiciary is organized into courts of com- mon pleas for civil cases, and courts of quarter sessions for the trial of criminals. Since every citizen has the right to be protected from arbitrary seizure, a warrant is generally required for his arrest, unless the offense has been com- mitted in the presence of the constable or policeman. The sheriff is the supreme county official charged with the duty of arrest, custody, or execution of the criminal. The coroner is the county official who investigates the • causes of deaths in an effort to prevent and punish crime. Cases may be brought before a magistrate in the city or a justice of the peace in the country. Trivial cases are within their 484 Problems of American Democracy jurisdiction, and they may discharge the prisoner or assign a light penalty in the form of fine or imprisonment. If the offense is serious, the prisoner is sent to jail to await trial by the county court, or set free upon the payment of bail given in proportion to the seriousness of the offense. The accusation is then tested before the grand jury and a bill of indictment is filed, or the accused is released because of insufficiency of evidence against him. If not released, the prisoner is finally arraigned before the bar of justice when his case is called before the court. The charge is read and he may plead innocent or guilty. He may employ his own lawyer or, if unable to pay for such service, the state provides an attorney for him. The district attor- ney, or one of his assistants, represents the state by the prosecution of the criminal. Witnesses who testify are forced to appear in court by the serving of subpoenas. A jury of twelve then renders a verdict of guilty or not guilty, and the judge fixes the sentence. The jury decides upon the evidence in the case — true or false — and the judge upon its legal significance. The jury system is rightly regarded as one of the greatest results of English political development. The prisoner, Defects in who is given every opportunity for defending jury system, j^gg^ j s regarded as innocent until proved guilty. But like all social institutions, trial by jury has its defects. Under this system a large number of guilty escape; for it is agreed that it is better for nine guilty per- sons to escape than for one innocent man to suffer. A unanimous verdict of the twelve jurors is generally neces- sary for conviction and if any one of the numerous rules of procedure is broken, a new trial may be secured. In this country the work of the courts is notoriously slow, The Treatment of the Criminal 485 whereas justice should be both swift and certain in order to be effective. In the third place, those serving upon juries are often relatively uneducated. Intelligent indi- viduals, who should perform this civic duty, often seek to escape such work in order to engage in their own more profitable occupations. Others plead conscientious objec- tions to serving. Again, the jury is apt to be swayed by the skill and eloquence of lawyers who gain their ends by sentimental use of the pathetic prisoner or the dramatic witness. Some writers upon jurisprudence would sub- stitute for the jury a bench of three judges. Many regard this, however, as too radical an innovation. Undoubtedly some changes should be made in legal pro- cedure. For example, the state should employ social experts in criminology, as well as those versed in suggested the law. These should be trained to distinguish re f° rms - between the different classes of criminals and to pass upon questions of insanity and abnormality. Their special training in psychology would also enable them to evaluate testimony. In the next place, a great discrepancy exists in the administration of the law. Not only do the legal codes of the different states vary greatly in penalties inflicted for the same crime, but within a given state there is a great variation in the severity of the decisions of the different judges. This situation is difficult to avoid because the human equation is ever present. The last objection to our criminal system, however, is most fundamental. We are still seeking to make the punishment fit the crime and not the criminal. Retribution is still largely the aim of punishment, and its character and amount are fixed according to the gravity of the crime. However, if refor- mation is the desired end, the punishment should be made 486 Problems of American Democracy to fit the needs of the criminal rather than the nature of the crime. Such a policy would mean that different offenders would receive different sentences for the same offense. The single offender or occasional criminal might be treated with leniency because he is not likely to repeat his wrongdoing. The habitual criminal, however, might be sentenced for the same offense to the permanent custody of the peni- tentiary, and the instinctive criminal assigned to one of the institutions for defectives. It must be said, however, that judges do make distinctions between first offenders and hardened criminals. They are also sentencing a greater proportion of prisoners to specialized institutions where more individual treatment may be secured. Punishment of Crime. — The first point of view in regard to punishment for crime was that of revenge. This Point attitude was most conspicuous in the early days of view: f private warfare, when the aggrieved indi- vidual or his group vented his wrath upon the offender, whose entire family was often made to suffer. If the offender himself could not be captured, substitutes taken as hostages might suffer the fate intended for the original wrong-doer. "An eye for an eye and a tooth for a tooth" was the spirit of that age. Somewhat of the same spirit continued long after crime came to be looked upon as a social, rather than an indi- vidual offense, which the State itself undertook PvGVOltlO ) I to punish. In order to deter others from a similar course, an attempt was made at intimidation through torture and death by the most cruel means. Exe- cutions were public, and the heads of criminals and political victims were placed upon long poles and exhibited from the walls and towers of the town. The Treatment of the Criminal 487 Curiously enough, the severity of the penalty has been found to have a less direct relation to the repetition of the crime than was at first supposed. Torture and n , Reformation. barbaric punishments have lowered the public morality and driven toward crime as many as have been deterred from it by fear of cruel penalties. The modern point of view toward the whole criminal problem is that of reformation or improvement both in the criminal himself and in his environment. Prevention of crime through the improvement of social environment is most fundamental. Regarding the individual criminal, the reformatory rather than the punitive attitude should be taken. Like the pauper, the criminal should be viewed as one who is socially diseased. In rendering sentence society, through its instrument the judge, should prescribe for him in the role of social physician. Formerly, many crimes were punishable by death admin- istered in various ways according to social sanction. Burn- ing was common for slaves and heretics, but with the advance of civilization, beheading became treatment: popular. In England the block, and in France F c °l™jZ the guillotine, took the place of the stake. Hanging has been a common fate for modern criminals, and only recently has it given way to the more humane method of electrocution. Until recent times torture was frequently practiced. The victim might be drawn and quartered, or broken upon the wheel, and in very ancient times crucifixion was common. The death penalty was not only cruel but frequent. In the first quarter of the sixteenth century, the public executioner at Nuremberg put to death one thousand one hundred and fifty-nine per- sons, and seventy thousand executions took place during 488 Problems of American Democracy the reign of Henry VIII of England. As late as the last century, the death penalty was inflicted upon children and those guilty of minor offenses such as stealing. Brand- ing and flogging were also common. Unfortunates sen- tenced to sit in the pillory were pelted by jeering crowds, while the public hangings at Tyburn prison in London were regarded as holiday amusements. In revolutionary France, the women, while knitting, enjoyed the ghastly guillotine. The prisons of ancient times defy description. Prison- ers languished in filthy underground dungeons until death Prison put an end to their misery. Often they were reform. political offenders against whom no just legal charge could be brought. Such was the situation in the famous Bastille. To prevent this arbitrary imprisonment, the English parliament had passed a Habeas Corpus Act. Debtors, however, continued to suffer imprisonment until very recent times. Prison conditions were unspeakable. The sick and diseased spread their contagions, while often the two sexes mingled promiscuously. In some jails so little food was provided that many prisoners were forced to beg from their more fortunate brethren. The jailers were generally brutal characters who exacted fees on the slightest pretext. The warden of the Marshalsea, pictured in Dickens' story, had at one time an income of £3000 a year derived from such sources. Modern prison reform may be said to date from the time of the Italian, Beccaria, and the Englishman, John Howard. Beccaria was a stu- dent who published a book against torture and advocated a reform of the criminal law. John Howard (1 726-1 790) was one of the greatest reformers of all times. As sheriff of Bedford, he was placed in charge of the prison where a The Treatment of the Criminal 489 century before John Bunyan had written his Pilgrim's Progress. By personal experience, he became acquainted with the jail conditions which he pictured before the House of Commons. A great traveler, he visited the prisons of many leading European countries and studied their wretched conditions. He called attention to their most glaring evils and inaugurated a movement for their reform. The greatest evil in our present prison system is the county jail. This is regarded by experts as a most efficient school for crime. Here prisoners are com- . The mitted thirty or ninety days for minor offenses, present In the jail are confined those guilty of mis- system: demeanors, while the more serious felons are The county 7 j ail. sent to the penitentiary. Old and young mingle freely, and the vicious hardened criminal narrates his deeds to the young offender, who thus acquires criminal knowl- edge and bad habits. The tramp, the outcast, and the dis- orderly are kept here along with those who are merely awaiting trial. In most counties there is not sufficient need, or enough funds, .to warrant the building of larger and better jails. When such is the case, however, several counties should unite in the building of a district jail that can provide proper separation of prisoners, adequate discipline, regular industry, and effective reformatory measures. Difference in types of criminals makes the need of indi- vidualized treatment imperative. In other words, dis- tinctive institutions for different criminal classes A7 , , Need of are needed. The instinctive criminal, often special in- stitutions. feeble-minded or otherwise defective, cannot be reformed and is dangerous at large in society. This small group should be kept in permanent custody. The habitual 490 Problems of American Democracy criminal is difficult of reformation and is apt to commit further crime. He should be placed in a state peniten- tiary, under an indeterminate sentence, and should be kept there until there is adequate proof that he is no longer a menace to society. The novice should be separated from the hardened criminal. In some cases, he may well be dealt with outside the prison walls by a system of probation. Young offenders need very careful treatment because they present the possibility of reform. Reform schools • are therefore needed for juvenile offenders. In order to avoid mass treatment and to individualize the prison system for the various groups of offenders, A plan Professor Ellwood suggests that each state suggested. should have at least the following separate types of institutions: (i) county and city jails, which should be used only for the temporary detention of prisoners await- ing trial. One evil of our present system, as we have seen, has been the use of the county jail or the city " lock- up" as the place of imprisonment for all the different groups of prisoners serving petty. sentences. (2) Reform schools for all children under sixteen years of age, or at least under the compulsory school age. (3) Reformatories for first offenders, particularly for the young. This group would thus be separated from habitual criminals, and in the treatment of this class industrial training should be emphasized. (4) State penitentiaries for all habitual criminals. (5) Special reformatories for vagrants, ine- briates, and like characters. (6) Hospital prisons for the criminally insane. Other defectives, wherever found, should receive specialized treatment. The responsible head of the prison is the warden or superintendent. In order to secure efficient administra- The Treatment of the Criminal 491 tion this officer should be empowered to appoint subordi- nates, under a civil service system. There should be a competent medical staff in addition to the force Adminis- of clerks, guards, and housekeepers. Industrial tratwn - training is important because if the prisoner is later to become a useful member of society, he must have some means of livelihood when discharged from prison. Trade schools should be established for the young, while the older men are given employment in the shops or in work around the institution. In the past, prisoners have been forced to perform unprofitable occupations or those of little practical value in after life. In some penitentiaries, classes are con- ducted where illiterate convicts are taught to read and write. Formerly, prison discipline has been very severe and the "lock step" method in vogue. Warden McKenty, of the Eastern Penitentiary in Pennsylvania, has found that a more liberal spirit is not only advantageous to the man himself in the process of reformation, but that it is also a factor for good throughout the entire institution. The same spirit characterized the work of Superintendent Osborne at Sing Sing. Instead of brutal punishment, the deprivation of special privileges may be used with greater power for effective discipline. Under this system prisoners are graded, and each grade has greater privileges than the one below.. Marks and demerits may be given, so that the prisoner with a good record maybe able to advance to the highest grade. There may also be the possibility of short- ening the sentence by good behavior. In some hardened cases it may be found necessary to resort to a system of solitary confinement, combined with restricted diet, or even to corporal punishment. In earlier days, a con- 492 Problems of American Democracy troversy existed between the advocates of what was known as the solitary or separate system of confinement and its opponents. These two plans were known as the Pennsyl- vania and Auburn systems respectively. The former method guards against corruption due to evil associations, but the lack of human contact may result in insanity or some lesser form of mental abnormality. It may be said of the administration of prisons, as well as of almshouses, that more complete records should be kept. There should be some central clearing house for the records of prisoners, many of whom have been found to be repeaters under assumed names. There is a system of measuring each individual criminal known as the Ber- tillon system. The lengths of the bones are recorded, for these do not grow after physical maturity is reached. Full- face and profile photographs of the prisoner are also taken for the "rogues' gallery." The print of the thumb is a further mark of identification because no two of these are alike. Prisoners were employed in earlier days at most severe labor. In the last century convicts, like Jean Valjean in Victor Hugo's story, were sent to the galleys. Convict labor upon the roads is still common and may be beneficial, if properly regulated and supervised. It was formerly common to lease a gang of convicts to some contractor, who was responsible for their care. They were often poorly treated, however; for profit, not reformation, was the aim of the contractor. The evil of this system became so apparent that the state was forced to keep control of its prisoners when they were turned over to an outside employer. Prisoners should be made to work because idleness is physically, mentally, and morally pernicious. The work, however, should have some educational value and enable The Treatment of the Criminal 493 the convict to earn an honest living. In the past prisoners have been taught a trade only to find, when discharged, that it possessed little practical economic value. Organized labor has opposed convict labor as injurious to the wages of the free workman. Some states either prohibit or place restrictions upon the prison output. Under the law of 1897 in Pennsylvania, not more than thirty-five per cent of the inmates of a penal institution may be employed in the production of goods for sale, nor may any power machinery be used. The "state use" system attempts to overcome this objection of the labor unions by producing articles needed in various state institutions. Farms are also being purchased by the state, because outdoor work is physi- cally most beneficial to the prisoner. Convicts are also at work upon roads and other public improvements. It is impossible to know in advance just how long it will be necessary to keep an individual a prisoner before he is sufficiently disciplined to be set at large. Hence many advocate the indeterminate sen- reforms: tence which does not state exactly the length of ^tfTentmce imprisonment. The convict must furnish evi- dence by his conduct, self-control, obedience, and habits of steady work that he is capable of making an honest living. Students of law fear that this system would be a temptation to prison officials to keep certain prisoners longer in jail than would be just to them. On the other hand, an individual convicted of some serious crime might be released too soon. The occasional criminal would profit, and the habitual criminal suffer, by its adoption. It is true that the indeterminate sentence places an enormous responsi- bility in the hands of the warden of the penitentiary. It also necessitates an entire change in our point of view toward 494 Problems of American Democracy the criminal. Punishment must no longer be unalterably- fixed according to the nature of the crime, but must be adjusted to the nature of the man who commits the crime. The indeterminate sentence presents the objection that it is impossible for prison officials to predict how a man will use his newly obtained freedom. His conduct Parole. within prison walls may be sufficiently excel- lent to win the approval of the officials, but when restraint is removed he may again become morally deficient. Hence, some writers have argued that the prisoner should not be permanently discharged, but only conditionally freed under the system of parole. He is not to be released until employment has been found for him, and he must break loose from his former evil associations. He must return to the penitentiary occasionally, with a report from his employer and perhaps from another reputable citizen. At the end of his term of sentence, he is relieved of this supervision which has been a good preparation for absolute freedom. If, on the other hand, he violates his parole or again falls into evil ways, he is returned to jail. The parole system has many good features, but, like many other prison reforms, it is difficult of administration. Unregen- erate criminals have been known to forge reports and, meanwhile, resort to their old practices. The administra- tor should always hesitate about furnishing parole to the habitual criminal. Instead of being sentenced to the county jail for a mis- demeanor, the offender, unless a dangerous character, , . might be put upon probation by the judge. jorim- When work has been secured, he should be prisonment. regularly visited by the probation officer. For the first offender, the fear of imprisonment may be a great The Treatment of the Criminal 495 deterrent. But on the other hand, if he were imprisoned, he might lose all hope of an honest future. In certain cases fines may be substituted for imprisonment, but some method should be devised whereby poor offenders may be able to discharge their indebtedness in installments and thus avoid jail. Fines, however, have little reformative value to the criminal and frequently work great hardship to his poverty-stricken family. Reparation to the injured party should be required as the condition necessary to sus- pending a sentence of hard labor. This is not only just to the injured party, but also of disciplinary value to the offender. Transportation of criminals has sometimes been used as a substitute for imprisonment, but the results have not always been beneficial. Australia was originally used as a penal colony, but the practice was finally stopped after numerous appeals from the colonists. For vagrants, feeble-minded, and certain other classes of delinquents, agricultural colonies under strict supervision have been advocated. Such colonies, however, must be kept isolated. The abolition of capital punishment has been urged by some writers, who question the right of society to take the life of an individual, while admitting its right to put the offender in permanent custody of capital . . punishment. in order to prevent a recurrence of similar out- rages. Others regard the death penalty for murder as just and plead the old argument of retribution expressed in the rule of "an eye for an eye and a tooth for a tooth." Others, again, fear that the abolition of capital punishment would lead to a great increase in the number of serious crimes committed. We have seen, however, that the fear of cruel punishment does not always work as a deterrent to crime. At present, the death penalty prevents many 496 Problems of American Democracy juries from condemning criminals whose guilt is practically assured. The abolition of capital punishment would thus result in a greater number of convictions for the more serious crimes. Juvenile courts were first established in our large cities. Certain states have since authorized all judges, in districts where there are no special juvenile courts, to Delinquent . .. , r , , ,. children: suspend ordinary rules 01 procedure in dealing "courts* 16 with criminals under eighteen years of age. The object aimed at in such cases is to prescribe reformatory treatment for those young persons who seem to be starting upon a criminal career. In conjunction with the court, there is a probation officer to investigate the case and to supervise the young delinquent. He is not sen- tenced to imprisonment, but is. allowed to return home upon probation. The court officer watches over his con- duct and environment. School attendance or, if beyond school age, the character of employment is especially important in these cases. Home conditions should be good and association with evil companions avoided. No publicity is given these juvenile offenders, who under such circumstances might be tempted to regard themselves as of some importance. Special institutions are needed for youths who have committed crimes serious enough to send an adult to the Reform penitentiary. A rural environment and the schools. occupation of agriculture are often found to be beneficial, while trade instruction is necessary for those who return to city life. The cottage system of administra- tion in such cases is much more effective than mass treat- ment in dormitories. Individualization and personal con- tact are essential in the education and reformation of The Treatment of the Criminal 497 youthful offenders. The aim of all such treatment is the quickening of the moral sense and the development of self- reliance in the form of ability to acquire economic inde- pendence. QUESTIONS FOR DISCUSSION 1. How was crime originally punished? 2. Describe the various kinds of trial used in the Middle Ages. 3. What reform did Henry II introduce? 4. Follow the trial of a criminal from his arrest to his conviction. Show the duties of the various judicial bodies and officers. 5. Show the strength and weakness of our present criminal procedure. 6. What reforms are advocated? 7. How has the point of view toward the criminal changed? Discuss the three stages. 8. Discuss early prison reform and reformers. 9. Discuss the evils of the present county jail. 10. Show the dangers of mass treatment. 1 1 . What different types of institutions are needed in any adequate prison system? 12. What improvements have been made in penal adminstration? 13. What should be the aim of convict labor? 14. Show the evils of the contract system. 15. Give the arguments for and against the indeterminate sentence. 16. Explain the parole system. 17. What substitutes for imprisonment have been tried? 18. Give the arguments for and against capital punishment. 19. What is your opinion? 20. How do the juvenile courts differ from the others? 21. What are the functions of a probation officer? TOPICS FOR SPECIAL REPORT 1. Trial by ordeal and compurgation. 2. The evolution of jury trial in England. 3. The criminal code of a century ago. GG 498 Problems of American Democracy 4. The life and work of John Howard. 5. Early prisons and their occupants. §. The model penitentiary. 7. Trade unions and convict labor. 8. The reform school and the boy criminal. 9. The penal institutions of your own state. 10. The influence of nineteenth century English literature upon criminal reform. REFERENCES Hayes, E. C. Introduction to the Study of Sociology. Chapter XXXIII. Henderson, C. R. Dependents, Defectives, and Delinquents. Part IV, Chapter III, IV, and VI. Henderson, C. R. Preventive Agencies and Methods. Lowrie, D. My Life Out of Prison. Mangold, G. B. Child Problems. Book IV. Reports of the National Conference on Charities and Correction. Reports of State Prison Associations. Taylor, W. L. The Man Behind the Bars. Travis, T. The Young Malefactor. Wines, F. H. Reformation and Punishment. CHAPTER XXXVII Defectives in Society I. Physical defectives i. The blind: a. Extent b. Causes c. Treatment: (i) Method (2) Occupations 2. The deaf: a. Extent b. Causes c. Treatment 3. The crippled 4. Effects of war II. Mental defectives 1. The insane: a. Extent b. Causes c. Treatment 2. Epileptics 3. The feeble-minded: a. Definition and extent b. The three classes c. Its hereditary character d. The dangers e. Need of institutions III. Conclusion 1. Social debtor classes 2. The future 499 500 Problems of American Democracy Physical Defectives. — These divide themselves natu- rally into the blind, the deaf, and the crippled. It is difficult The blind: to estimate exactly the number of the blind in Extent. ^he United States because of the frequent classi- fication of the partially blind with the totally blind. The number of the latter has been estimated at fifty thousand. The proportion of males among the blind is higher than that of females because many men lose their vision through explosions and other industrial accidents. Almost half the blind are reported as being sixty years of age or over. It is therefore evident that blindness is associated with advancing age and with the decline of physical vigor. For the good of future generations it is imperatively necessary that eyesight be properly safe-guarded. Greater precautions must be taken in the school room, the home, the factory, and other places of employment. The cor- rection of errors of vision by the use of glasses may be preventive of future blindness and is becoming viewed as a matter of social as well as of individual concern. Blindness from infancy is not uncommon. A large pro- portion of this physical defect is due to a disease known as opthalmia, an infant blindness, which has been estimated to cause about one-tenth of all cases of blindness. It often occurs in cases where the parent is diseased, but it may be prevented in almost every instance by washing the eyes of the newly-born babe in a very weak solution of silver nitrate. This preventive measure is rarely practiced by the ignorant attendants at the births of many infants in our poorer and immigrant homes. Hence the plea for the presence of a physician at each birth, and the use of the maternity hospital for those too poor to pay for proper medical attendance. While con- Defectives in Society 501 ditions of modern civilization are especially severe on the eyes, the advance of medical science may counteract the tendency toward defective vision. It is by reason of this fact that the proportion of blind of school age is not increasing, but actually decreasing, in comparison with the general increase of blindness in the total population. There are at present about fifty schools for the blind in the United States, with an approximate attendance of five thousand students. Schools for the blind Treatment were first established by private funds in Boston, °^ bhnd " New York, and Philadelphia; but various states are now making special provision at public expense for the educa- tion of this group of unfortunates. The course includes the usual elementary branches, with special instruction in reading and writing and industrial training. The first system of printing devised for the blind was by means of raised letters. The system of Louis Braille, devised first in 1829, does not, however, use the actual letters but employs dots. This method possesses many advantages over the earlier system. In a number of public schools in our larger cities special classes for the blind are main- tained. This arrangement does not necessitate their leaving home, permanently, to live in a distant institution. It is necessary that parents educate their bhnd children, for the census reported that nearly one-half of them were not in attendance at any school. It is surprising to learn how much can be done by scientific educational training to make blind children, who are still in the formative period, independent and self-reliant. Other faculties' can be trained to do a large part of the work ordinarily done by the eyes. When blindness occurs, the sense of touch becomes highly developed. But the treatment of the blind 502 Problems of American Democracy is rendered difficult by the fact that a large proportion suffer from other defects as well. A study at the Pennsyl- vania Institution for the Blind revealed, for example, that forty-five per cent of the girls and thirty-six per cent of the boys had indications of curvature of the spine. In weight, height, and lung capacity they were also below the normal. Physical exercise, especially of a corrective nature, is imperatively needed. Industrial education must also be emphasized. Manual training is taught the blind, as well as handicrafts, like chair-caning, broom-making, and carpet-weaving. Employ- ment is necessary to keep the blind from dwelling upon their misfortune and from becoming morbid and melancholy. A second and equally important reason for occupation is the necessity for securing economic independence. The blind beggar upon the street is not only a pathetic figure, but often a cause of misdirected charity, injurious to himself as well as to the community. The number of blind engaged in gainful occupations is encouraging, and the state should deliberately foster the movement. Several states have established special workshops for the blind, where they can find certain types of work adapted to their abilities. Special employment agencies are on the lookout for positions which they can creditably fill. The adult who becomes blind in mature years, through accident or loss of physical vigor, is the most unfortunate of this entire group, for a complete readjustment is necessary in his case. New York City has adopted a system of giving pensions to the adult blind as a subsidy to those who are trying to become self-supporting. In addition to the blind, the deaf and the dumb constitute two other classes of physical defectives. Some unfortunates, Defectives in Society 503 like the celebrated Helen Keller, possess all three defects. The inability to speak, however, has been found in a number of cases not to be due to any defect in The deaf: the brain or speech organs. Deaf mutes are ExtenL often unable to speak, or are forced to speak imperfectly, because of their inability to hear. Many have never learned to talk merely because of a lack of opportunity to hear themselves and others speak. About five per cent of the deaf are also feeble-minded and should be placed in institutions for the latter rather than for the former. There are apparently more deaf than blind in the United States. So many degrees of deafness exist, that it is even harder to estimate exactly the number of deaf than to approximate the number of the blind. In round numbers, the sum total approaches one hundred thousand and does not seem to be decreasing in proportion to the total popu- lation, as does the number of blind. Of the total number, about one-fourth are reported as being totally devoid of the power of speech. What proportion of these are really dumb and what proportion have simply never learned to speak because of their deafness cannot be ascertained. There are numerous causes of deafness, but the most common are, perhaps, accident and disease. Adults are often attacked by catarrhal colds and diseases causes of of the ear. In the young scarlet fever, menin- deaJness - gitis, and adenoids stand out conspicuously as causes of deafness. A third cause may be found in geographical environment. The mountainous country of Switzerland has a high de.af rate, while the low country of the Nether- lands has a lower one. This may, however, be due to other than geographical causes. Blindness is also higher in bright desert lands where the rays of the sun are intense. 504 Problems of American Democracy The multitude of blind beggars in the Orient may, how- ever, also be due to the lack of medical knowledge and of scientific treatment. A fourth cause of deafness is hered- ity, although the exact part played by this factor is dif- ficult to ascertain. The marriage of deaf people, with whom deafness is inherent and not merely acquired, will often result in deaf children. About one-fifth of all the deaf are born deaf, and a large proportion of these come from totally or partially deaf parents. A fifth cause may lie in consanguineous marrage, that is, in marriage between near relatives. Thus the Jews, who permit the marriage of cousins, have an unusually high rate of deafness. It has been stated that four per cent of the deaf are the offspring of consanguineous marriages. Near relatives are apt to possess a somewhat similar heredity. If defective hearing should exist in both parents, this physical handicap will be intensified in the child who draws his heredity from both. There is little, however, to prove that consanguin- eous marriage is, in itself, a cause of deafness, provided the defect does not exist in parental heredity. The education of the deaf is highly important because, as we have seen, many present the possibility of being Treatment of taught to speak. When the speech organs or brain centers are defective, the sign language may be utilized as a method of communication. For those who are merely deaf and have the ability to speak, the reading of the lips of the speaker will enable the conver- sation to be followed. The ability to understand what is being said by watching the lips of the speaker is now being taught, and the facility of the deaf in this respect is some- times marvelous. It is naturally easier for the deaf to pursue higher education than for the blind, and for this Defectives in Society 505 reason Columbia Institute at Washington offers them collegiate work. There is a special agency for collecting and diffusing knowledge concerning the deaf in America. It is known as the Volta Bureau and was endowed by Dr. Alexander Graham Bell with the money awarded him by the French Government for the invention of the telephone. Certain large cities have day classes for the deaf, in addi- tion to the state institutions. Like similar classes for the blind, they possess the advantage of allowing the children to live in their homes and to mingle with other normal children. Industrial training is important for their eco- nomic independence. The number of occupations open to the deaf is far in excess of those open to the blind, and as a result, most of the former may become entirely or par- tially self-supporting. Certain physical deformities exist from birth due at times to hereditary causes. A large number are cripples because of accidents. In the case of industrial acci- The dents, the crippled should be beneficiaries of cn PP led - some type of social insurance. Often they can become self-supporting. As with the two other groups of physical defectives, special preference should be shown them in filling positions within their capabilities. Railroads, for example, often give such positions as flagman to men crippled in their service. The aim should be to prevent the crippled from becoming beggars on the streets. Fre- quently they evade the law by becoming venders of small articles, which the "purchaser" seldom takes. Crippled peddlers should not be allowed to trade upon their mis- fortunes. This is as demoralizing to themselves as to the community. It may also lead to the feigning of injuries to excite the pity and generosity of the passer-by. Per- 506 Problems of American Democracy sonal interest, not merely a financial contribution, will accomplish the best social results. The local charity agent will strive to find honorable positions for such unfortunates and will look after them until they become self-supporting. In cases of very serious injury, when they have no income or relatives capable of supporting them, the crippled should become inmates of a special home for incurables. The World War took an unprecedented toll of human life. Excluding the women, children, and aged, who per- Effects ished of famine and starvation in the devastated of war. regions, the total number of soldiers killed in the belligerent nations was not far from ten millions. The wounded in any army are usually in excess of the num- ber killed. Until the present generation passes away, therefore, Europe will have a great proportion of its male population made up of the crippled. Since American par- ticipation in the war was shorter, the number of killed and wounded was correspondingly less. To meet this situa- tion, instead of the former pension system, the federal government inaugurated an excellent system of social insurance. Cheap life insurance policies could be obtained by the men at enlistment. Special legislation provided compensation for those who were injured, as well as for the dependents of those who lost their lives. At the close of the war plans for the rehabilitation of the soldiers were considered. Modern medical science was called upon for the physical reconstruction of the sick and injured. The mental side was also emphasized. Duly qualified men were sent to technical schools and colleges. The government gave vocational training and taught illiterates to read and write. The aim was to make the injured men as nearly self-supporting as possible. Nothing in this entire pro- Defectives in Society 507 gram was considered as charity, but merely as the best efforts of an enlightened modern democracy to do what it could for those who fought for its preservation. The same fine spirit which won the war stimulated the injured veterans in their quiet but heroic struggle for economic independence. Mental Defectives. — It has been estimated that there are about a half million mental defectives in the United States. Of these, about two hundred thousand Th fall within the various groups included under insane: the general term insane. The annual cost of the care of these insane has been estimated to equal the sum expended annually on the construction of the Panama Canal. This expenditure seems to be increasing in Europe as well as in America. The increase in both the amount and the cost of insanity must, however, be somewhat dis- counted because many cases of insanity, formerly concealed, are now being disclosed and cared for in public institutions. Again, since the lives of the insane are being preserved by modern medical science, there is a natural increase in the total number of insane patients. The cases show a slight excess of males over females, and a decided excess of adults over the young. Among the various interrelated causes of insanity, hereditary predisposition may first be mentioned. Although insanity may seem to run in families, its relation causes of to heredity is not so clearly established as is msamt y- that of feeble-mindedness. It would seem that insanity is more an acquired characteristic than an inherent one. A mental weakness or instability may be inherent in certain family stocks and, under pressure of circumstances, an individual of such ancestry is more apt to become 508 Problems of American Democracy insane than one who has inherited a sounder and stronger mental constitution. We have said that tuberculosis was not hereditary, but that weak lungs were. Similarly, it is the neurotic taint or the predisposition toward mental disorder that may result in insanity, epilepsy, or some other mental disease. A second cause of insanity is immorality, which produces terrible diseases leading to insanity. Children of parents suffering from such diseases are more likely to be mental defectives than those of healthy parentage. Again, immorality and its resultant diseases may produce mental disorders in the individual himself. Softening of the brain and insanity often follow in later life as a result of physical excesses. Alcoholism is another important cause of insanity, which may appear either in the individual guilty of such excess or in his offspring. Again, fracture of the skull, bone pressure, blood clots, and lesions of the brain may result in insanity. Finally, bad mental habits may be the cause of an unbal- anced mind. Worry, shock, fright, overwork, severe mental strain and anxiety are frequent causes, of insanity, particularly when the mind is not naturally strong. In ancient times the insane were regarded as possessed by devils. Their incoherent statements were sometimes Treatment of considered prophetic utterances, and their wild the insane. ac tions ascribed to supernatural influences. In recent times, and upon American soil, mental defectives have occasionally been burned or hanged as witches. Lunatics have often been put in prison and in chains for safe keeping. Modern science, however, insists upon medical treatment for the insane in addition to detention. If such cases are treated as soon as signs of mental disorder manifest themselves, it is sometimes possible to effect a Defectives in Society 509 cure. Insanity may take such diverse forms as melan- cholia, paranoia, or hysteria. The monomaniac is the individual whose mind is unbalanced in one direction, while the maniac is one whose mind does not function properly upon any subject. Many asylums group their patients according to ease of administration. The noisy patients, the filthy, and the orderly are the usual dis- tinctions. The insane of wealthy families may secure proper treatment in numerous private asylums, but insane paupers generally receive inadequate care. Many are kept in the almshouse in special cells and little attempt is made at curative treatment. Some insane are still confined in jails and prisons. A good working classifica- tion of insane patients is that of acute and chronic cases. For the chronic cases kindly custodial care is needed, but for the acute cases medical treatment may result in con- siderable improvement. Persons afflicted with a mental malady will often recover, if at all, within the first year. Hence the need of haste and the necessity for individual and personal attention. There is little definite knowledge of permanent, cures for these obscure mental maladies, but much has been accomplished by the use of massage, baths of various kinds, electricity, varied diet, and general mental and physical rehabilitation. Epileptics must be treated as a special class of mental defectives. Epilepsy itself is a little understood malady, the causes of which are very obscure. The ,. ., . r , ,. Epileptics. ordinary manifestations of the disease are con- vulsions, of greater or less severity, at varying intervals. The lives of many otherwise intelligent and useful people are overshadowed by a dread of these terrible attacks. Many feeble-minded, however, are also epileptic, and 510 Problems of American Democracy epilepsy is a common trait of criminals. About half the children of epileptic parents are epileptic, and nearly all the other half show serious defects of different kinds. It is therefore the duty of society to discourage the prop- agation of such people. Special provision should be made for their custody; for the public care of epileptics in America is most deficient. They are either left at large or are placed in almshouses and insane asylums, in neither of which institutions are they properly cared for. Special colonies should be founded for epileptics, who need a quiet outdoor life, a careful diet, and mental and physical occupation in agreeable surroundings. Feeble-mindedness must be distinguished from insanity. The insane suffer from a cessation of the normal working of the mind; the feeble-minded from an unde- The feeble- minded: veloped mentality. The brain of the insane Definition represents a broken or impaired mental machin- and extent. r sr ery, while that of the feeble-minded has been of low caliber from childhood. An adult whose intelligence has been normal may become insane in later life, but the feeble-minded are generally such from birth. They have inherited a low-grade mentality. Again, an insane per- son may have all his faculties, but they have ceased to work in unison. On the other hand, the feeble-minded individual has been born with some faculties lacking. The number of the feeble-minded is alarmingly great. Conservative estimates made in Great Britain and the United States fix a proportion of one feeble-minded to every three hundred of the population. The grades of mentality shade so gradually from the normal to the sub- normal, that it is difficult to estimate even approximately the number of feeble-minded. It is certain however that Defectives in Society 511 there are more feeble-minded than insane persons. Dr. Goddard places the number in the United States at three or four hundred thousand. An attempt has been made to fix the standard of intelli- gence for each year of mental development in the life of the average child by the system of Binet tests. The three This provides a long series of questions for each dasses - year of childhood. Their character is practical, and the subjects are chosen from the child's every day experience. They become more difficult and require more thought for each advancing year. On the basis of satisfactory answers to the majority of the questions in each series, a child's mentality is classified as, for example, that of a normal eight year old or that of a ten year old. Since psychological or mental experiments are never so exact as those of physical science, the results of the Binet tests of mentality cannot be regarded as absolute. By such a general scheme, how- ever, the feeble-minded are classified according to their mental age, irrespective of their actual age. Of these, there are three groups — idiots, imbeciles, and "morons.'"'' A mentality equal to that of a normal child of two years belongs to the idiot class. These cannot care for them- selves, nor learn to speak, and many are physically deformed and misshapen. Since they are generally short- lived and cannot reproduce, this class is not self-perpetuat- ing. The group whose mentality may advance further, but is limited to that of a normal eight year old child, con- stitutes the imbecile class. Members of this group may live to maturity, but their mentality, actions, and conduct will be those of a young child. The "moron" represents the mental ability of normal children between eight and twelve years of age. This is the most dangerous group 512 Problems of American Democracy because it so nearly approximates the normal. These ''morons " mingle with the rest of the world unnoticed by the casual observer. The dangers arising from these child-adults in society will be discussed later. Although vice and alcoholism sometimes produce feeble- mindedness, the condition itself is generally due to hered- itary causes. While it is true that this taint hereditary may pass over certain individuals and even character. . generations, feeble-mindedness nevertheless runs in families. A law of heredity, known from its dis- coverer as Mendel's law, throws some light upon the pro- portion of feeble-minded offspring born of the union of a normal person with one who is feeble-minded. The mating of two feeble-minded persons, however, seems certain to produce feeble-minded offspring. It would thus appear that feeble-mindedness is not usually an acquired trait, but is generally inherent in the germ cell. The hereditary character of feeble-mindedness may be clearly shown by a study of various families like the Kallikaks, the Pineys, the Ishmaelites, and the Smoky Pilgrims. Here it is seen to persist in particular families and to be widespread in certain isolated localities, where these defectives have propagated their kind. From such studies it is evident that considerably over half the number of cases of feeble- mindedness are hereditary. It must be said, however, that some feeble-mindedness, like the "Mongolian" type, has appeared in families whose heredity fails to furnish any feeble-minded ancestry. A very small proportion of the feeble-minded are con- fined in institutions. The vast majority of these physical adults with childish minds are at large in society and a con- stant menace to its welfare. They react easily to sug- Defectives in Society 513 gestion, for inhibition or restraint is a characteristic of the adult mind. The feeble-minded naturally find it difficult to compete with those of normal intelligence, The and a larger number are the recipients of dangers - charity or find their way into the poor-house. Possessing the physical strength of adults, they become, through their mental deficiency, a constant source of delinquency. Indeed, many are moral imbeciles incapable of distin- guishing right from wrong. Out of six hundred children appearing before a Chicago Juvenile Court, twenty-six per cent were feeble-minded. A large proportion of the inmates of reformatories and prisons also belong to this class. Dr. Goddard places the proportion of feeble- minded in our almshpuses at about one-half and gives the same ratio for the criminal class. Again, it has been esti- mated that from twenty-five to fifty per cent of the immo- rality among women is due to f eeble-mindedness. The cost to the state in crime and pauperism of the feeble-minded would justify the expenditure of a large sum of money for their custodial care. If they are permitted at large, they will continue to reproduce their kind and to lower the aver- age level of intelligence throughout society. This is the great danger of the moron group, who closely approximate the physical normal, but who transmit the hereditary taint of feeble-mindedness to their offspring. If society ever expects to reduce the number of these defectives, the need of custodial care for the feeble-minded is imperative. They must be segregated and Need of prevented from mating. This course is best msMutwns - suited to their own real happiness because they delight in the amusements and toys of childhood. They take pleas- ure in playing with other children of the same mental age. HH 514 Problems of American Democracy In this manner, they would no longer be exploited or tempted by those of mature intelligence. Little hope, however, can be held out for their ultimate advancement. Feeble-mindedness is apparently incurable. Nothing can be done for idiots except to satisfy their physical wants. The imbecile group do not need so much attention and may be taught to care for themselves. The "morons," how- ever, are capable of receiving an education equivalent to that of children of corresponding mental age. Manual training may teach them to use their hands productively. Few states have met the problem of the feeble-minded by providing for their permanent custodial care in special institutions. Indeed, there are not nearly enough such institutions to care for this defective group. The institu- tion for the feeble-minded at Vineland, New Jersey, is deserving of special mention, for here Dr. Goddard has carried on his valuable investigations. Conclusion. — The last five chapters have dealt with social groups which present peculiar difficulties in a demo- cratic society. They are all sub-normal. All debtor act as a hindrance to social progress and con- classes. . t 1 1 r stitute a large part of the general problem of social adjustment. They are conveniently designated the social debtor classes and comprise the dependents, the delinquents, and the defectives. The causes of their deficiency have been seen to lie both in social environment and in individual heredity. In order to eliminate malad- justments, the environment — both economic and social — must be transformed to meet the needs of the individual. Adverse environing conditions must be so changed that individual abnormality may be removed wherever possible. "An ounce of prevention is worth a pound of cure" is as Defectives in Society 515 true of social ills as of bodily ailments. Poverty and crime must be prevented rather than cured, and conditions giving rise to defectives must be as largely as possible eliminated. In considering the future of these unfortunates, individual heredity must be considered as well as social environment. Democracy has already begun the work of adjust- xhe ment. Charity is being organized, almshouses future * improved, and prison systems reformed. But what is being done to improve the race biologically? The solution of many social problems depends not only upon the progress of ideas, the psychological factor, but also upon the physi- cal improvement of man, the biological factor. From this point of view, a sound physical heredity is as important to the success of democracy as a good social environment. Eugenics may be defined as the science of the biological improvement of the race. Because man in the past has grown up haphazardly, is there no reason for supposing that conscious measures may not be taken for his deliberate biological improvement? To be sure, extremists have brought this idea into disrepute by their radical suggestions. But all students of society agree that a rational application of eugenic principles will not only result in race improve- ment, but that such application is imperatively needed for certain classes in American society. For example, it is undoubtedly the duty of society to prevent the propagation of inherently degenerate biological stocks, like the feeble- minded, whose deficiency is hereditary. As society advances, it is hoped that its eugenic standards will be raised. 516 Problems of American Democracy QUESTIONS FOR DISCUSSION i. Give an estimate of the extent of blindness in the United states. Is it increasing? 2. Describe any school for the blind that you have seen. Name any in your community. 3. What lines of training are especially needed for the blind? 4. Give the extent and causes of deafness in American society. 5. Explain the role of heredity in producing deafness. 6. Why is the inability to speak so common in the deaf? 7. What should be society's attitude toward, and treatment of, its crippled members? 8. What should you, as an individual, do for the crippled beggar on the street? 9. Discuss the extent of insanity in the United States. 10. Discuss the causes of insanity. 11. Is insanity hereditary? Explain fully. 12. How were the insane regarded and treated in former times? 13. What progress has been made in caring for them? 14. What improvements are needed to-day? 15. What should society do for the group of epileptics? 16. Contrast feeble-mindedness with insanity. 17. Discuss the extent of feeble-mindedness in the United States. 18. Describe the three groups of the feeble-minded. 19. Show the hereditary character of feeble-mindedness. 20. What are the dangers arising from the feeble-minded when at large in society? 21. Can feeble-mindedness be cured? Why or why not? 22. To what extent may the feeble-minded be taught? 23. What is the duty of society regarding the feeble-minded? 24. What are the three groups of social debtors? 25. What should be the attitude of society toward the individual social debtor? 26. What should be the keynote of social reform in this direction? 27. From what different points of view may the problem be attacked? Explain each. Defectives in Society 517 TOPICS FOR SPECIAL REPORT 1. Opthalmia or infant blindness. 2. Industrial training for the blind. 3. Teaching the deaf and dumb to speak. 4. Civilization and insanity. 5. Education of the feeble-minded. 6. The provision made by the laws of your state for the care of defectives. 7. The work of some local institution for any group of defectives. 8. The program of the United States for the rehabilitation of crippled soldiers. 9. The future of society from the standpoint of eugenics. 10. The relative importance of the ever-present factors of heredity and environment in race improvement. 1 1 . The treatment of defectives in Sparta. REFERENCES Best, H. The Blind; The Deaf. Davenport, C. B. Heredity in Relation to Eugenics. Goddard, H. H. Feeble-Mindedness. Goddard, Ff. H. The Kallikak Family. Henderson, C. R. Dependents, Defectives and Delinquents. Part III. Smith, S. G. Social Pathology. United States Census Reports on the Blind, the Deaf, the Insane and Feeble-Minded. CHAPTER XXXVIII The Problem of the Modern Family I. The family as a social institution i . Its importance 2. Functions: a. Primary b. Secondary II. Marriage relations i . Early peoples 2. The Romans 3. Marriage a sacrament 4. Marriage a civil contract III. Divorce in the United States 1. Marriage laws in the United States 2. The rapid increase of divorce 3. Comparison with Europe 4. Distribution of divorce: a. Geographical b. Urban influence c. Race d. Nativity e. Religious belief /. Other facts 5. Legal grounds for divorce IV. Causes of the increase of divorce 1. Economic changes: a. Modern industrialism b. Economic emancipation of women c. Higher standards of living d. City life 518 The Problem of the Modem Family 519 2. Social progress: a. Rise of individualism b. The Woman's Movement c. Popularization of education and law d. Moral and religious changes V. The outlook 1. National Congress on Uniform Divorce Laws 2. Work of religious bodies 3. Remedies: a. Legal b. Educational 4. A problem of adjustment So far in our treatment of problems of American Democ- racy, we have discussed questions of general importance to government, industry, and society. We have not yet examined, however, certain specific problems which relate directly to the three remaining social institutions — the family, the school, and the Church. The family is rightly regarded as the most fundamental institution of society; and yet, even this institution is, to-day, undergoing important changes. In fact, not only the family, but the school, as expressed in public education, and the Church, as evidenced by social morality, are affected by the process of democratic readjustment that is taking place throughout the progressive, civilized world. Accordingly, in the remaining chapters, we shall discuss, first, the instability of modern family life; secondly, the trend of public education in a democracy; and, thirdly, the present tendencies in moral progress. The Family as a Social Institution. — The primary and most important social institution is the family. Indeed, the family may be regarded as a miniature society. 520 Problems of American Democracy Since it contains both sexes, it is capable of reproducing itself; and, since it includes all ages, it contains the Itsim- various social relationships illustrated by the portance. authority of the father and the obedience of the children. We may call it the primary form of association from which developed later institutions. Thus the first industrial society was the family. In savage society, the father goes upon the hunt, while the mother builds the hut and prepares the food and makes the clothing. The family of the frontiersman of our own day is a practically indepen- dent economic unit, providing for itself most of the necessary articles and utensils, as well as food and clothing. Again, religious life has centered and still should center in the family. The patriarchal father was the first high priest, and the hearth-fire the seat of the earliest religious devo- tions. The child's earliest education is obtained at his mother's knee, and the institution of the school continues the work already begun by the family. Finally, govern- ment and the institution of the State had their roots in the institution of the family. The patriarch Abraham was a tribal chief, and the Roman pater familias who ruled his family was responsible to the State for the conduct of the members of his household. The primary function of the family is the biological one of reproduction, the perpetuation of the human species. Itsfunc- ^ e industrial function of the family has, for tions: the most part, been lost; for production to-day has gone from the home into the huge factory. Again, the school and the various church organizations have become modern substitutes for the educational and religious life of the family. But no social changes can undermine its primary biological function — the birth of The Problem of the Modem Family 521 offspring. The family is the social institution which pro- duces new individuals for society and cares for them until maturity. Thus, the primary function of the family is to transmit physical life from generation to generation. This function is as permanent as the human race itself. There is also a secondary function of the family, namely, the transmission of social possessions from generation to generation. These may be material possessions, secondary such as property and wealth, or the spiritual f unctwn - possessions of the race, such as the mother tongue and ideals of government and religion. The transmission of these possessions we sometimes call the process of socializa- tion. This secondary function of the family is to fit the individual for the larger life of society. It is to prepare for citizenship in the broadest sense of the word. This duty is at present in grave danger of being neglected, unless the Church and the school come to the rescue of the family. For example, the school must not only enlarge its curriculum to include work in the social sciences, but it must also introduce courses in domestic science and in vocational training, in order to give that preparation for later life which was formerly given in the home. The Sunday School has come into being to give moral and religious training to many boys and girls who would never receive such instruction at home. Marriage Relations. — Not only are the beginnings of the present monogamic family found among the most primitive peoples, but its rudimentary germs Early may even be traced back to the simple pairing P e °P les - system of the higher animals. Thus, the present form of the family rests upon thousands of years of evolution, and its ultimate stability will not be endangered by one short 522 Problems of American Democracy period of transitional development. Nevertheless, even among primitive peoples, we find numerous deviations from the permanent monogamic form of marriage. Here the duration of the marriage relation varies from a very- transitory state, among a few groups, to life-long union among others. Indeed, the character and permanency of family life is one indication of the degree of civilization attained by a particular society. Sometimes the relation is so temporary as scarcely to deserve the name of marriage. With the development of group life, loose marriage rela- tionships become more definite and some sort of ritual or symbolic ceremony grows up to celebrate the union. Divorce, in the sense of breaking up this marriage relation- ship, is very old. Among early peoples the right to a dissolution of the bond was generally given to the man, not to the woman. But among all civilized peoples, from the earliest times, the ideal marriage has been that of life-long union. The ancient law code of Hammurabi, ruler of the earlier Babylonian kingdom, mentions causes of divorce and regulations for the disposal of the property, or for transfer of the dowry, of divorced parties. In ancient Jewish society, where the patriarchal system pre- vailed, family life was stable and authoritative. But even here the right of the husband to put away his wife was conceded in the Mosaic code. The family of the early Romans was not only patriarchal, but also characterized by ancestor worship. The marriage The ceremony was of a religious nature in which the Romans. bride's father freed her from the worship of her own household gods, whereupon she accepted the ancestor worship of her husband's family. Divorce and polygyny were practically unknown among the early Romans, whose The Problem of the Modern Family 523 family life was pure and stable. Adoption was frequently resorted to by the Roman family when the line of descent was jeopardized by the lack of natural offspring. With the decay of ancestor worship, the patriarchal family declined. The decadence of family life was also hastened by the growth of a skeptical philosophy, and by the numerous political and social changes of the later Republic. In the days of the Empire, marriage came to be regarded as a private contract, and the old idea of the religious nature of marriage, prevalent in the early Republic, gradually dis- appeared. The great law system of Rome also began to grow in complexity and to include the legal rights of women and children. Divorce, which was formerly almost unknown, became more and more frequent. The right of divorce was opened to wives, as well as to husbands. Among certain classes in the decadent period of Roman history, divorce was so common and so easy to obtain that a stable family life ceased to exist. Vice was rampant and played a sinister part in the downfall of the Empire. Rome at this time is the classical illustration of the appar- ently direct relationship between unstable family life and national disintegration. The Christian ideal of the Middle Ages was ascetic. The early church fathers regarded both woman and the institution of marriage as obstacles in the path Marriage a of saintly living. Celibacy was the rule for the sacrament - clergy. Whereas the early Church had exercised but little jurisdiction over marriage, the ceremony later became religious and was performed by the priest in the parish church. Marriage was finally enumerated as one of the sacraments of the Church, and the whole subject placed under ecclesiastical jurisdiction. This point of view, 524 Problems of American Democracy known as the sacramental theory, regards marriage as indissoluble. The wide jurisdiction of the ecclesiastical courts of the Middle Ages included not only religious matters, but also all questions regarding marriage. The church courts not only possessed the power to try heretics, but also the authority to pass upon the validity of marriages. A marriage might therefore be annulled because of some fault impairing its validity, but divorce itself was not granted. The Roman Catholic church to-day still regards marriage as a sacrament and refuses to recognize any right of divorce. The Protestant Reformation, weakening the authority of the Church, served to strengthen the authority of the „ . State. This resulted finally in the civil author- Marnage ... a civil ities taking over many powers formerly exer- contract. . . cised by the Church. The Renaissance had attacked the ascetic ideals of the medieval Church, and the Protestant Reformation permitted the marriage of its clergy. The trend of modern times has been consistently toward a separation of Church and State, and this move- ment has reflected itself in a changing attitude toward marriage. A civil marriage act was passed by the England of Cromwell. On the continent, this development was largely a result of the French Revolution and the nine- teenth century witnessed the triumph of the idea through- out Europe. Although the laws regarding divorce had long remained practically undisturbed, the principle involved in the new theory began to produce its results later. Eccle- siastical courts, like those of the feudal nobles, had long lost all power, for their jurisdiction had been usurped by the state courts. When divorce was finally recognized, the civil courts were the only proper legal agencies to grant The Problem of the Modem Family 525 the right. In the marriage ceremony of to-day the religious, as well as the civil, idea persists. An entirely civil marriage, however, is possible, and the ceremony may even be performed by a magistrate or by a justice of the peace. It is usually necessary to procure a license from the state authorities, before any ceremony can be performed by a clergyman. Some European countries require a civil marriage, but it may be followed, if desired, by the religious ceremony. Divorce in the United States. — In the United States, the whole question of marriage and divorce lies within the jurisdiction of the several states. The federal government has no authority in the matter, laws^n 86 Hence, great discrepancies exist within the sev- states! eral states in both marriage and divorce laws. For example, there is no uniformity regarding the legal age of marriage, nor the grounds for divorce, nor agreement concerning the degree of relationship within which mar- riage is forbidden. Certain states forbid the intermarriage of whites with negroes, others of whites with Indians, and still others of whites with Chinese. Again, some states are lax in the enforcement of marriage laws and in requiring the registration of all marriages. This registration is either not done at all, or so poorly done in some sections as to be of no real value. In general, we may say that the mar- riage laws of the United States are entirely too lax, and that hasty marriages often result in divorce. Not only should the applicant for a marriage license be required to live a given time in the district, but it has also been pro- posed that a certain time should elapse between the issuance of the license and the performance of the marriage cere- mony. Laws have been recently passed in some states 526 Problems of American Democracy prohibiting the marriage of certain degenerate classes, like the feeble-minded, and those possessing hereditary defects. Other eugenic measures have also been proposed to improve the physical stock of the race. Some of these are excellent, but others are too radical in the physical tests required for the marriage certificate. In 1887 the Commissioner of Labor was authorized by Congress to collect and report the statistics of marriage and divorce throughout the country. This increase of report covered the twenty years from 1867 to divorce. nn _ _, , _, .. 1887. In South Carolina no marriages were recorded, and in many other districts the registration was far from complete. Divorce statistics for this period, unlike those for marriage, were fairly complete and sufficiently accurate for purposes of scientific study. In 1905, the Director of the Census was authorized to make a similar investigation for the next twenty years, namely from 1887 to 1906, inclusive. This was published several years later and made possible a study of the divorce movement in the United States over a continuous period of forty years. It was found from this census study that, in the decade between 1867 and 1876, one hundred and twenty-two thousand divorces were granted; between 1877 and 1886, two hundred and six thousand; between 1887 and 1896, three hundred and fifty- two thousand; and between 1897 and 1906, five hundred and ninety-three thousand. This study also showed that, in the last twenty years inves- tigated, almost a million divorces had been granted in the United States. This increase of divorce should be com- pared with the increase of population, and with the increase of marriage. Whereas the population in 1905 was little more than double that of 1870, divorces were six times as The Problem of the Modem Family 527 numerous. Thus we may say that the increase of divorce was three times as rapid as the increase of population. Again, whereas the married population a little more than doubled between 1870 and 1900, the number of divorces increased five-fold. A projection of the same rate to the end of the present century would mean that half of the marriages then contracted would end in divorce. Such a situation would not be unlike that prevailing in the days of the declining Roman Empire. The United States has the unenviable reputation of leading the civilized world in divorce. Professor Ellwood in his study of the divorce problem gives the _ J . Comparison following figures for 1905, which show that the with United States has more than double the com- bined amount of divorce in the foreign nations investigated : United States 67,976 Great Britain and Germany 1 1,147 Ireland 821 France 10,860 Australia 339 Austria-Hungary . . 5,785 Canada 33 Although the increase in the number of divorces is not a national but an international phenomenon, characteristic of modern civilization, our own country is the most con- spicuous example of this evil. In 1905 we had about one divorce to every twelve marriages, while in France the ratio was one to thirty; in Germany one to forty-four; and in England one to four hundred. In a few of the states the ratio ranged from one to eight, one to seven, one to six; and, in Oregon, Washington, and Montana, there was one divorce to every five marriages. The Report on Mar- riage and Divorce by the United States Census Bureau already mentioned shows that our divorce rate is higher 528 Problems of American Democracy than that of any other western nation. It is about three times that of France, four times that of Germany, and thirty times that of Great Britain. The infrequency of divorce, however, does not necessarily indicate, as will be shown later, a better or higher family life in those states or nations possessing a lower divorce rate. Customs, laws, or religious beliefs may keep the family intact even when family life is disintegrating. Where divorce is difficult or impossible to obtain, there may be many disrupted families who cannot register their disruption in the divorce sta- tistics of the courts. We have already seen that a great difference exists between the divorce laws, and consequently the divorce D . ., rates, of the different states. In general, the tion: divorce rate is greater in the northern and west- jeograp ica . ^^ s t a tes than in those to the South and East. Divorce has been compared to a great cloud lowering from the Northwest. There are three great geographical cen- ters of divorce: (1) New England; (2) the states of the Central West; and (3) the Rocky Mountain and Pacific Coast states. The Middle Atlantic and southern groups of states show the lowest proportion of divorce. Recently, however, the divorce rate has shown a rapid increase in a few southern centers, and also in the city of Philadelphia. A recent Census Report showed that the divorce rate in the North Central states was two and one-half times that of the North Atlantic states, while the divorce rate of the western division was four times as great. In Europe, divorce was regarded as a phenomenon of city life because the rate was so much higher in the urban than in the rural districts. The census investigation, however, found that this difference was not so strikingly The Problem of the Modern Family 529 significant in the United States. But, although variations exist, it is nevertheless true that in our own urban country the divorce rate is higher in the urban m $ uence - than in the rural districts. Court records in the South often do not give information concerning the color of the litigants. Consequently, it is impossible to establish any definite fact in regard . Race. to the comparative proportion of divorces between the two races. Again, many of the negroes live so near the poverty line that legal divorce through the courts is too expensive. Simple desertion, often by mutual consent and without the process of law, is comparatively more common. The r61e of the immigrant in the divorce problem is not so uncertain. The divorce rate is much higher among the native born than among the foreign element in „ . . °. . ° Nativity. our population. Many immigrants come from lands where both tradition and religion are so strong that these forces persist in the new country and operate against the divorce evil. Because of the uncompromising attitude of the Roman Catholic Church against this evil, divorce is much more common in Protestant than in Catholic com- Religious munities. In Switzerland, for example, the et ® m divorce rate is higher in the Protestant than in the Roman Catholic cantons. Some observers claim that the divorce rate is highest among those of no religious profession. The divorce rate is about four times as high among child- less couples as among those having children. Of the mil- lion divorces granted between 1887 and 1006, . ., . . . , . Other facts. no children were reported in about sixty per cent of the families affected. Thus, children would seem 530 Problems of American Democracy to be an important factor in about two cases out of five. Regarding the party to whom the divorce is granted, we find that twice as many women receive divorces as men. Thus, about two-thirds of all divorces are granted upon the plea of the wife, and about one-third upon the plea of the husband. Regarding the duration of married life, the census report showed that, in one-quarter of all the marriages terminated by divorce, the separation took place within two years, and, in one-half of the cases, within five years, after marriage. The legal grounds for divorce vary as much among the different states as do the actual rates of divorce. South _ Carolina refuses to grant divorce. New York grounds for recognizes but one cause, infidelity, while in divorce. other states there are many legal grounds upon which divorce may be granted. The three leading causes are desertion, cruelty, and adultery. Often the legal grounds upon which divorce is granted reveal little infor- mation as to the real cause of the disrupted family life. To the student of American democracy, the causes under- lying the broken family life are of more importance than the actual divorce, which merely legalizes the disruption already accomplished. Furthermore, desertion, for which reason two-fifths of all divorces are granted, is a " blanket" term. It is used in many cases as the legal ground for granting the divorce, but the real cause of the disrupted family is not revealed. Although there is but one legal ground for divorce in New York, many divorces are granted under that name, but for other causes. Variation between the states in the strictness of divorce laws often results in a certain amount of migration from state to state for divorce seekers. Hence, a change in our constitutional The Problem of the Modern Family 531 system, whereby a uniform federal divorce law may be enacted, is earnestly advocated by many students of the divorce problem. Causes of the Increase of Divorce. — The rise of the factory system marked the passing of the economic function of the family. Production went from the home to the factory. In earlier days the father Economic farmed, the wife spun, and within the family C M ^n & in- circle were produced most of the necessities of dustrialism. life. To-day, even articles of food, like bread and soup, are more often prepared in the factory than in the home. Although division of labor and the use of machinery have made goods cheaper and more plentiful, these forces have broken up the economic interdependence of family life. Great industrial centers have developed where not only fathers, but also mothers and children, find employment. The factory system has lessened the work to be done at home, but has offered to women and child- ren employment in the factory. Different members of the family become employed in different places and occupa- tions. Interests vary and the home sometimes becomes merely a place in which to eat and sleep. Such a situation often results in the production of unsocialized children, because high ideals of family life are lacking. Again, the neglect of practical training in the duties of motherhood may bear fruit in the unhappy homes of a future generation. That the school is taking over some of the old home duties may be seen by the new vocational courses and the courses in domestic science. Mothers, employed long hours in fac- tories, have little time to teach, or to illustrate by example, the art of happy home-making to daughters often similarly employed. In some cases, nervous or physical exhaustion 53 2 Problems of American Democracy makes them unfit for their own duties of wife and mother. The severe struggle for existence may also take the charm from married life. An equally grave situation is met in the homes of another class, where the opposite situation prevails. Modern industrialism has lessened the amount of work to be done in the home, particularly in the cities. Therefore, women of the wealthy class often live at idle ease. It is How Industry Breaks Up the Home — Women in the Cotton Mill this group of "idle rich," where the birth rate is low, that furnishes so many divorce scandals. Leisure time, unprofitably or unwholesomely employed, saps the moral fiber far more than a hard-pressed or overworked existence. In conclusion, we may say that the Industrial Revolution has broken the economic unity of the family and placed the industrial work of woman outside the home. It has The Problem of the Modern Family 533 brought an increasing amount of wealth unevenly dis- tributed. Unfortunately, not only leisure time and the size of the family seem inversely proportional, but social classes at opposite extremes often present, for far different reasons, a like problem of disrupted family life. Making Garments in a New York Factory — Instead of in the Home The entrance of woman into industry has been marked by various economic as well as social consequences. While the movement will undoubtedly be ultimately „ J J Economic advantageous to society, it nevertheless pro- emancipation . . . . . , of woman. duces in the period of transition certain unde- sirable social consequences. Until very recent times, woman, rightly or wrongly, has always been regarded as economically dependent upon man. This view has 534 Problems of American Democracy obtained in spite of the fact that woman has always per- formed a large part of the industrial labor of society. Her work, however, has been less noticeable than that of man, because it has been confined to the home. Matrimony, therefore, was regarded as a means of support for women. But now the employments opened to woman have so widened that matrimony is no longer regarded as a neces- sary means of support. Divorce offers a way out of an unhappy married life, while industry furnishes the means of support. Woman is now in industry as an independent competitor, receiving definite wages for services rendered. This growing economic independence of woman may be read in the laws establishing the property rights of married women. Not only divorce but late marriages, as well as spinsterhood, are frequent manifestations of the economic emancipation of woman. With the advance of industrial civilization has come a rise in standards of living which, of course, has been accompanied by an increase in the cost of living. standards Wants and desires have increased faster than of living. , incomes. The luxuries of yesterday have become the necessities of to-day. Higher standards of living are socially desirable, but when they exceed wholesome limits, the results are often disastrous. Each group desires to imitate the standards set by the next higher economic class. This is the cause of much domestic unhappiness, which reflects itself in increasing divorce. Luxurious living and the increased cost of living are thus partly responsible for the later age of marriage and for the accompanying increase of divorce. Professional men of to-day are often financially unable to undertake the responsibilities of married life until they attain the larger The Problem of the Modern Family 535 income that comes with later years. But, at this later age, the habits of the individual are relatively more fixed and harder to change. Thus, the adjustment necessitated by marriage is more difficult in later than in earlier life. On the other hand, it may be said that mature years bring judgment and discretion, while early marriages, rashly contracted by impetuous youth, often result in marital disasters. It is true, however, that a rising divorce rate in this country has accompanied the advancing age of marriage, although the latter may not be the direct cause of the former. Our new industrial system has resulted in an enormous growth of cities. As we have seen, the divorce rate is higher in urban than in rural communities. Here are . . City life. most apparent the differences in standards of living. Again, vice and immorality are often associated with city life. Slums constitute a difficult environment for a wholesome family life, while a normal happy family life is hard to attain for those living in the fairly congested districts. The rise of individualism took place in the period follow- ing the Renaissance. It expressed itself in the Protestant Reformation, and in the French and American Revolutions. As a further result of this liberal- progress: izing movement, marriage came to be regarded f-^^J^ more as a civil contract than as a sacrament. The old authoritative type of the family reached its extreme development in patriarchal days, when woman was regarded as the property of the husband. For many centuries, traces of that spirit lingered in family life, but to-day they have been practically obliterated by the spread of democratic individualism. Again, social insti- 536 Problems of American Democracy tutions are not now regarded as existing for themselves, but rather for the benefit of those who create them. Thus, marriage as an institution is not always considered inherently sacred. The rise of individualism has also reflected itself in what is generally known as the Woman's Movement. We have The Woman's spoken of the economic emancipation of woman, Movement. an( j now p ags to a cons i(i era tion of the intel- lectual and legal aspects of the problem. The inferior position of woman, due to her economic dependence upon man, no longer exists. Under the old system, the wife had little redress for wrongs suffered. She often accepted her fate stoically; but, with the acquisition of new rights and a new point of view, woman has chosen to obtain relief from conditions to which she formerly submitted. The rising divorce rate — unfortunate though it be — does reflect the growing freedom of American women and does not necessarily indicate that conditions of family life are worse than they were before the movement began. The decrease of illiteracy shows that education is no longer the prerogative of the few. Public schools, free libraries, and daily newspapers disseminate Populariza- i 1 j i_ • i_ i_ • '4.' £ Hon of knowledge which brings emancipation from e aiTuw. tradition. Knowledge and progress always pro- duce social unrest. To this principle the insti- tution of marriage is no exception. Existing injustices are more keenly felt, and escape is sought from a condition which formerly was endured. Law, as well as education, has been popularized. Ordinary legal knowledge is now within the reach of every one and the courts are open to all. Individuals who formerly knew little of divorce now know how and why it may be obtained. The Problem of the Modern Family 537 History bears witness to the fact that no stable family life has endured without a religious basis. In Rome the decay of religion was followed by the increase of „ , , J <=> •> Moral and divorce. At present, we are witnessing the religious passing of the dogmatic age of religious history. With the change in the point of view goes an increase in divorce. Although dogma to-day does not occupy a posi- tion of supreme importance, it is true that character and service are becoming more important. New ethical con- cepts of right and wrong are being formed. Formerly, it was regarded as pious to continue the sacred marriage relationship in spite of all differences, and to endure any suffering which might arise. At present, however, the modern attitude seems to be that marriage, like the Sab- bath, was made for man, and not man for marriage. Again, an increase of divorce does not necessarily mean an increase of immorality. It may mean that our moral standards are higher, and that fewer wives will permit deception or brutality. Thus, the new situation may really be an indication of higher ideals of family life. The Outlook. — In response to the invitation of the Governor of Pennsylvania, a commission of over one hun- dred representatives from almost all the states of the union met at Washington, in February, Congress . & ' . J \ on Uniform 1906. This meeting was known as the National Divorce Congress on Uniform Divorce Laws. No fed- eral divorce law was regarded as feasible, because it would require the passage of a constitutional amendment. It was desirable, however, that all states cooperate in order to secure uniform divorce legislation. It was agreed that all applicants for divorce should be bona fide residents of the state in which the suit was filed, and that, to secure a decree 53 8 Problems of American Democracy of absolute divorce, the applicant should reside two years in the state. The Congress desired to see the number of causes of divorce reduced and to standardize the whole divorce question. It was thought that a decree dissolving the marriage tie and permitting the remarriage of either party should not become operative until after the lapse of a reasonable time. The Wisconsin, Illinois, and Cali- fornia rule of one year was recommended. It was also recommended that each state collect and publish annually statistics upon marriage and divorce. While uniform divorce laws would be of great advantage, it must not be imagined that mere uniformity of legislation would pre- vent the increase of divorce, the causes of which are deep- seated and complex. The attitude of the Roman Catholic Church upon divorce has already been mentioned. The Protestant churches _ r , , have also been alarmed at the rapid increase of Work of r religious divorce, and at various meetings of the govern- bodies. . , . ing bodies of the different denominations action has been taken upon the subject. Slight discrepancies exist in the resolutions of the different bodies, but a con- sistent effort has been made to lessen the number of causes of divorce. Infidelity is usually regarded as the sole scrip- tural ground for the granting of divorce. The indiscrim- inate marriage of divorced people has also been condemned. The desirability of uniform marriage and divorce laws is apparent, but uniformity in administration is also needed. Remedies: Not only a decrease in the number of causes for Legal. absolute divorce, but also a legal prohibition of the marriage of divorced people is often recommended. This latter restriction, however, is regarded by some writers as both dangerous and undesirable. Better, perhaps, The Problem of the Modern Family 539 would be the recommendation of the National Congress on Uniform Divorce Laws that a certain time must elapse after the granting of divorce before the remarriage of either party. This is sometimes done by a nisi or conditional clause, which prevents the divorce from becoming operative until after the lapse of a year or two. This condition affords the possibility of a reconciliation, while it lessens the likelihood of fraud or scandal. Some communities have established special Courts of Domestic Relations. Under this system, all applications for divorce first come before a special tribunal, which carefully investigates the case in order to determine whether, for the good of society, the dissolution of the family tie is warranted. Reconciliation is generally the aim of the court; but, unfortunately, it is often too late to accomplish this end. Regarding all rem- edies for divorce, it is well to remember that divorce itself is merely the legalization of the disruption* of family life which has already been accomplished. Real reform has its roots in pre-marital conditions and in family life itself, rather than in restrictions on divorce. Bad marriages are essentially the cause of divorce. These include in the words of Prof essor Howard "frivolous, mercenary, ignorant, and physiologically vicious unions." Again, the various causes resident in the environment which hinder a whole- some family life should be carefully considered in any com- prehensive attempt to solve the divorce problem. In seeking to cure the divorce evil, the proper education of the young is even more necessary than the legal remedies. Education in its broadest sense is designed to . . Educational. fit the child for his proper place in society. It is more than formal instruction in a course of study. It should therefore emphasize the basic position of the '540 Problems of American Democracy family, the sanctity of the marriage relationship, and the necessity for high family ideals. To do this the Church, the school, and the home should cooperate, each having the same aim but pursuing different methods. The importance of the family, not only to the individuals con- cerned but to society itself, should be emphasized. Atten- tion must therefore be given not only to moral education, but to careful training in the actual duties of the home. From the standpoint of the family, the modern course in domestic science is a most important factor in promoting social welfare. It would seem that the family, like other social institu- tions, is in a process of transition. The economic bonds which formerly held it together are weakening, of adjust- while at the same time the patriarchal ideal of family life is gradually disappearing. The family of the future must depend largely upon mutual love, consideration, and forbearance. It will therefore be stronger and of a higher type. Again, the unfortunate increase of divorce may be one indication of social progress, which is always a costly process. Enlightenment illumi- nates injustices and maladjustments. The older type of family was more stable because it rested upon an authori- tative basis. A more democratic type must be evolved in harmony with the higher ethical standards of the age. Of the monogamic family we need not despair. The single pairing family will persist. After the process of adjust- ment is completed, the ideal of life-long union will once more triumph. The new type of family will be founded upon the principle of mutual obligation. It will be demo- cratic and the spirit of dominance and subordination will disappear. The Problem of the Modem Family 541 QUESTIONS FOR DISCUSSION 1 . How and why may the family be regarded as the fundamental social unit? 2. Distinguish between the primary and secondary functions of the family. Explain each. 3. Do you think that the family is losing some of its secondary functions? If so, to what other social institutions? Explain. 4. Is the permanent monogamic family an old social institution? Discuss from the life of primitive peoples. 5. Compare the family life of early and later Roman history. 6. Discuss the institution of marriage in the Middle Ages. 7. Explain the sacramental theory of marriage. 8. Show how marriage came to be regarded as a civil contract. 9. Name some proposed reforms regarding our marriage laws. 10. Show the rapid increase of divorce in the United States. 1 1 . Compare the increase of divorce with the increase of population. 12. Compare the divorce rate with the marriage rate. 13. How does our divorce rate compare with that of Europe? 14. Show the geographical distribution of divorce in America. 15. Compare the urban and rural rates. Give reasons for the difference. 16. Show the influence upon the divorce rate of race, nativity, and religious belief. 17. What are the most important legal grounds of divorce? Discuss their general significance to the student. 18. Outline the causes of the increase of divorce. 19. How does the opening of numerous occupations to women affect the divorce rate and why? 20. Show the role played by higher standards and increased cost of living. 21. Discuss the effect of the popularization of law and education on divorce. 22. How has the moral and religious sentiment in regard to marriage altered? 23. Discuss the proposed legal remedies for the divorce problem and their limitations. 24. Explain the fundamental cure for the divorce evil. 542 Problems of American Democracy 25. Show how the increase of divorce presents a problem of social adjustment. 26. Explain both the pessimistic and the optimistic sides of the phenomenon of increased divorce. TOPICS FOR SPECIAL REPORT 1. Various forms of family life and marriage relationships. 2. The position of women in ancient Athens and Rome. 3. The cost of social progress. 4. City life and divorce. 5. The problem of desertion. 6. Migration for divorce. 7. The remarriage of divorced people. 8. Effects of the Industrial Revolution on home and family life. 9. The divorce laws of your state. 10. The rise of individualism and its relation to divorce. REFERENCES Adler, F. Marriage and Divorce. Ell wood, C. A. Sociology and Modern Social Problems. Chapter VIII. Goodsell, W. The Family as a Social and Educational Institution. Howard, G. E. History of Matrimonial Institutions. Lichtenberger, J. P. Divorce — A Study in Social Causation. Reports on Marriage and Divorce. U. S. Census, iqoq. Ross, E. A. Principles of Sociology. Westermarck, E. History of Human Marriage. Willcox, W. F. The Divorce Problem: a Study in Statistics. CHAPTER XXXIX Public Education in a Democracy T. The development of national school systems i. In Europe 2. In the United States: a. Its growth b. Its administration II. The broadening of the curriculum i. The scientific movement: a. In general b. In education c. In methods 2. The sociological tendency 3. Vocational training: a. Industrial education: (1) In Europe (2) In America b. Commercial schools c. Agricultural schools III. Recent tendencies 1. Social activities 2. Home and School Movement 3. Other educational agencies 4. Educational readjustment 5. The social ideal Education is the bulwark of civilization. It is the fundamental basis of democracy. Through it society secures the discipline and training needed for its progressive development. In no other way can the social inheritance 543 544 Problems of American Democracy of a people be transformed into sound national character. For this reason it is the duty of the State to provide a system of education which will insure the realization of national ideals, as well as the attainment of economic ends. The Development of National School Systems. Until recent years, schools were regarded as private ventures and a man's education was a matter of In Europe. concern only to himself and his parents. There were no national school systems at public expense. The pioneers of public education were found in various philan- thropic institutions, such as the charity schools of England. The great progress of democracy in the last century had its effect upon education, which has now come to be regarded as a civic necessity. The former aristocracy of learning is a thing of the past. The masses, whom the past regarded as mere "hewers of wood and drawers of water," are no longer content to remain in ignorance. The old medieval monarch may have wished merely a loyal peasantry, but modern democratic nations cannot continue to exist without educated citizenship. Thus, during the last century and a half, the leading nations of Europe have developed state systems of education. Prussia was one of the first to organize a scheme of universal education and to make the system compulsory. This was accom- plished by the benevolent despot, Frederick the Great. A national system of education had its beginnings in France during the Revolutionary and Napoleonic periods. Louis Philippe, upon the advice of his minister Guizot, organized a scheme of elementary education whereby each commune was required to establish a primary school. Under the present Third Republic, elementary education has been made free to all and compulsory. The seculari- Public Education in a Democracy 545 zation of the school system from church control has also gradually taken place. The administration of schools in France is highly centralized under a Minister of Education. A national system of education was late in appearing in England, because the established Anglican Church main- tained a strong grip on educational institutions. In 1870, however, an important law was passed establishing elemen- tary schools supported by government grants. Compulsory school laws have also been passed. Our own early educational policy varied in the different colonies. The aristocratic ideal reflected itself in the famous dictum of Governor Berkeley of Virginia condemning free schools. In New England, on united States * the other hand, the school house, like the Its gro ' wth meeting house, was conspicuous in every town- ship. As early as 1647, Massachusetts required each town of fifty families to support an elementary school; and each town of a hundred families, a grammar school — an institution similar to the secondary school of to-day. That the fathers of our nation realized the importance of higher education was witnessed by the founding of such colleges as Harvard, and William and Mary. The early part of the nineteenth century saw the rapid extension of the common school system throughout the United States. The "little red school house" dotted the western wilder- ness, so rapidly developed by our hardy pioneers. The public high school, a characteristic American educational institution, arose to take the place of the older Latin gram- mar schools and the private academies. Normal schools were also established for the training of teachers. Not only has the number of students in such institutions increased, but educational standards have risen. JJ 546 Problems of American Democracy There is as yet no centralized administration of schools in the United States, for each state has its own independent Its adminis- system. These state systems, however, do not tration. vary so widely as might be expected. Every state has a well-organized plan of elementary education, and a more or less well-developed secondary or high school system, providing instruction for three or four additional years. Many commonwealths have large and well- endowed state universities, so that free education from kindergarten to college is within the reach of all their citizens. Our American democracy, with its fundamental principle of the separation of Church and State, has regarded education as the bulwark of free institutions. Unlike Europe, religious or sectarian schools have not been incorporated into our public educational system. Another difference between the school systems of Europe and those of America lies in our own refusal to recognize class dis- tinctions. In Germany, for example, there are separate schools for those who expect to prepare for the universities and for those who must leave school as soon as possible. The needed differentiation in preparation takes place in the elementary schools. In the United States, on the con- trary, it is deferred to as late a date as possible. There is practically one educational ladder for all classes. The system of separate schools for different groups may be more efficient in producing differentiated results, but it is dis- tasteful to the ideals of American democracy. The Broadening of the Curriculum. — The scientific experiments of Roger Bacon gleamed like a bright star in the dark sky of medieval ignorance and superstition. The various prophecies of his brilliant imagination have since become facts of every day experience. With the Public Education in a Democracy 547 Renaissance began the dawn of a new era in physical science. The theory of Copernicus shattered the older astronomical ideas, while Galileo, peering through his crude telescope, dared to assert that it was scientific not the sun but the earth which revolved. ™ ovement: In general. Scientific investigation not only continued, but geographical discoveries widened the field of knowledge. The movement gradually progressed until it culminated, in the nineteenth century, in the development of the biological sciences. This field was brilliantly investigated under Darwin, Huxley, and Spencer. The scientific move- ment also reflected itself in a practical manner in a great series of mechanical inventions. The steam engine, for example, revolutionized land and water transportation, as well as the methods of manufacturing. Modern life has been transformed by the application of steam and elec- tricity to industry. As in the days of the Renaissance, the human intellect has been reborn. The scientific movement not only affected industry, but also education. Through its influence the content of lib- eral education began to expand, and numerous ineduca- new studies clamored for admission into the Um ' curriculum. In his essay upon education, Herbert Spencer threw down the gauntlet to conservatives and boldly asked the question, "What knowledge is of most worth?" After discussing various aims, he answers this question by declar- ing that education should be a practical preparation for life. "How to live? — that is the essential question for us." In his enumeration of the studies conducive to that end, the sciences take a commanding position. The so-called cultural subjects are not entirely eliminated, but are relegated to the leisure time of life and, therefore, of 548 Problems of American Democracy education. Thomas Huxley also advocated the value of the sciences in comparison with the traditional study of the classics. Not only is a knowledge of science valuable, but the training in scientific method- is most important. Thus, science in one form or another has found its way into an assured place in the curriculum, not only of the secondary schools, but also of the elementary schools. Physics and chemistry are taught in the high schools, in addition to mathematics and the classics. In the ele- mentary schools, geography, physiology, and nature study find a place beside the "three R's." Meanwhile, courses in the modern sciences had already found their way into the colleges and universities. Great scientific and tech- nical schools have been founded for instruction in engi- neering, chemistry, and industry. One other effect of the scientific movement in education must be mentioned. When the scientific method of obser- vation and experimentation was directed toward In methods. , . education itself, great changes took place in the method of teaching and in school administration. Many accepted methods were found, in the light of scientific tests, to represent merely traditional ideas. With the develop- ment of psychology, education became a science as well as a practical art. The popular cry for efficiency has been echoed from industry to education. The old-fashioned schoolmaster and the " little red school house" of our par- ents are passing into history. Changes are taking place so rapidly as to be bewildering. The "fad" evil is com- mon to periods of transition, and mere radicalism must not be interpreted as progress. However, the new problems of a new age always require educational readjustment. In conclusion, we may state that the scientific movement Public Education in a Democracy 549 of the nineteenth century has been characterized by a great increase in the content of education, by the addition of the natural sciences, and also by great changes in methods and in school administration. The sociological movement in education grew out of the scientific. It answers the question "What knowledge is of most worth?" by emphasizing the importance of that knowledge which fits the individual to The • . . sociological meet the needs of his social and economic tendency, environment. The aim is social rather than individual. Upon its theoretical side, it would add to the curriculum the social as well as the natural sciences. Thus, in higher education the social sciences have taken a most important place in the curriculum. Economics has found its way down into the secondary schools, and civics into the elementary schools. Sociology itself, in the form of a study of concrete social problems, is now being incorporated into the high school curriculum. On its practical side, the sociological view of education adds to the curriculum vocational training for those pupils who must soon join the ranks of wage earners. This ideal of education aims to prepare the individual for his economic and social environment by means of industrial education, com- mercial training, or agricultural instruction. One of the most conspicuous educational movements of to-day is the development of vocational training. This may take three forms: (1) industrial, (2) com- vocational mercial, and (3) agricultural. Under the older training: system of industry, the' individual passed through the stage of apprenticeship, wherein he was taught by the master of the shop all phases of his future occupation. Following the Industrial Revolution and the 550 Problems of American Democracy development of the factory system, this method of "learning a trade" gradually declined. At present, the work of a factory employee is generally limited to a single process, and only occasionally does the employer attempt to broaden the knowledge of the workers. Hence the school, an outside agency, has been called upon to meet the demands of industrial education. Many states of Europe have had training of this sort for half a century. In Germany, continuation schools have been successful. A continuation school is so called because in it education is continued after the pupil discontinues regular school ses- sions. The employee is permitted by his employer to return to school a certain number of hours each week. Many localities have made such attendance compulsory for all apprentices up to the age of eighteen and have required the employers to grant them time for such study. Not only is training provided for the lower grades of artisans, but instruction is given to foremen, superintendents, and technical clerks. Industrial education in our own country appeared later than in Europe. Real skill and technical knowledge were needed, under the stress of international competition, for industrial supremacy. The earliest industrial schools in America were founded by private philanthropy or as a result of individual experiment. In the twentieth century, however, they appeared as an integral part of the public school system. Trade schools have been established in numerous cities, while continuation classes have sometimes been inaugurated in connection with compulsory education laws. Thus, the recent law of Pennsylvania requires partial school attendance for employees between fourteen and sixteen years of age. Manual training courses had Public Education in a Democracy 551 already been established in secondary schools and have even appeared lately in the more elementary grades. The purpose of manual training instruction, as distinguished from that of trade schools, is to offer the student general industrial training rather than to prepare him for any particular occupation. Vocational training has not been altogether industrial. With the great expansion of commerce, as well as of manufacturing, came the demand for a thorough commercial preparation for a business career. Only of schools - recent years, in the United States, has this phase of educa- tion come to be regarded as a function of our public school system, which, throughout the greater part of the nine- teenth century, stressed the purely traditional side of education. At the present time, however, commercial courses have won a recognized place in our scheme of public education. In England, in spite of her dominating position in the markets of the world, commercial education has been but a recent development. In our own country, the early history of commercial education was the usual story of private enterprise fulfilling a public need. Indeed, at the present time, business schools and other such private institutions number about one-half of all students of com- mercial education. Finally, the insistent demand for a modern type of education won the recognition of public school authorities. Since the opening of the present century, great progress in this type of education has been made. Commercial courses, as well as the manual training, have been added to the older and more purely academic high school curriculum. By recognizing the divergent needs of the various students who attend American public high schools, secondary education is no longer exclusively 552 Problems of American Democracy a merely traditional preparation for a classical college career. In fact, the universities themselves have long since recognized the need of practical education. Not only their splendid engineering schools, but also their widely attended courses in finance and commerce, bear eloquent witness to the great educational adjustments made by our American universities. Another aspect of vocational education is the agricul- tural. In 1862, Congress appropriated lands in every Agricultural state, amounting to millions of acres, for the schools. promotion of education. Because of the obvious needs of national life, it was stipulated that agricultural education should be emphasized in the schools thus founded. Nearly all our states, therefore, have established colleges which receive public support and which provide means of agricultural instruction. The need for such training is great because the United States is still primarily an agri- cultural nation, and her present methods of farming are often wasteful and inadequate. In many rural communities agricultural courses in high schools have been organized, and the movement is even taking root in the ele- mentary school system. Not only has agricultural edu- cation resulted in more efficient methods of farming, but it has also stimulated an interest in country life and its opportunities. In many rural communities the school has become, for the surrounding farmers, a cooperative center where soils are tested, the results of experiments shown, and a general knowledge of scientific farming disseminated. Recent Tendencies. — Vocational education is but one illustration of the increasing social service performed by the school. For those who are too old to attend day sessions, the elementary system provides night schools, where immi- Public Education in a Democracy 553 grants learn to read and write the English language, and where the foundations of American citizenship are laid. High schools have their evening courses for the social more advanced student, while the univer- actlvlties - sity extension movement and the evening college courses afford development for minds even more matured. In fact, the educational opportunities of the present age are so great that no excuse exists for general ignorance. The functions of the school have likewise increased. Playgrounds are now frequently operated in connection with the public school system and afford opportunities for recreation in the con- gested areas of the cities. School gardens have also been opened. Again, modern administrative school methods have provided special schools and classes for the mentally deficient. Many. cities not only maintain open air classes for tubercular children, but also look after the education of the deaf and the blind. Free medical and dental service is provided for the poorer pupils, while many school systems even employ a special corps of trained nurses. School lunches are frequently served at cost to the pupils, or fur- nished free to the poorer children in immigrant sections. Social- service has become a department of the schools, as well as of the hospitals. The attendance officers of the department of compulsory education cooperate with the probation officers of the juvenile courts to check the crim- inal careers of youthful law breakers. Another educational development of social importance is what is known as the "Home and School Movement." It seeks not only to bring the parents of the chil- dren into closer touch with the work of the School . Movement. school, but also to acquaint the teacher with the social background of the pupils. In some communities 554 Problems of American Democracy the school house has become a social center. Here the people of the community gather to listen to lectures on present-day- topics, or to enjoy some kind of dramatic or musical enter- tainment. While community singing is still new in America, it has nevertheless met with great success in social centers frequented by the music-loving immigrants. Athletic contests, classes in gymnastics, and even folk dancing have been held in these centers. In some sections, where the community spirit is strong, "sociables" and educational A Rural School in the South amusements have been planned. Since the school plant is public property, there is no good reason why it should not be used more frequently for community functions. In addition to the public school, there are numerous other institutions of an educational character. Foremost among these is the public library. In this form educational of philanthropy, Andrew Carnegie took the lead, agencies. km, • having devoted a large part of his fortune to the building of public libraries. Here the leading magazines Public Education in a Democracy 555 are on file, and books of fiction, travel, and scientific knowl- edge may be read. The newspaper has been a great means of popularizing education by the dissemination of informa- tion. The sensational journal, however, is more per- nicious than valuable, for stories of scandal and details of harrowing crime exercise a most baneful influence on the public mind. Museums and art galleries constitute A Modern Rural School another educational agency. Since good pictures have great educational and moral value, many cities have estab- lished public galleries and museums. Here are exhibited not only works of art, but scenes and products of far dis- tant places. Industrial exhibits, showing the stages in the production of various commodities, have also been intro- duced. Zoological gardens and city aquariums may like- 556 Problems of American Democracy wise be mentioned as containing specimens of animal life both interesting and instructive to the general public. Educational readjustment is the outstanding feature of the recent trend of educational development. It may be well to summarize here the causes and evidences Educa- . ... tionairead- of the progress made in this direction. One evidence of educational readjustment is the growing content of the curriculum. We have already mentioned the great development of the natural and social sciences. Since the sum total of human knowledge is constantly increasing, each age must decide for itself what knowledge is of most worth. Educational readjust- ment is one indication of intellectual progress, for static societies abhor educational changes. Again, methods of teaching and progress in school administration are keeping pace with the growth of the science of education. But the most important factor in educational readjustment is the spread of the spirit of democracy. Education for all is the modern ideal, for education itself is both a cause and a result of democracy. The need of "the classes" is not that of ''the masses": the educational ideals of the aristocracy of yesterday are not the democratic ideals of to-day. Conse- quently, the curricula and the courses of modern public schools have expanded far beyond the straight and narrow path of antiquity, that led to "culture" and a "liberal education." Thus, we have seen the enormous commercial and industrial development of the past century reflect itself in educational changes. Industrial society feels the need of intelligent workers, and the present generation asks for that type of education which will best prepare it for the prac- tical duties of every-day life. Therefore, vocational courses are demanded by this work-a-day world. Public Education in a Democracy 557 A final factor in educational readjustment is the growth of the social ideal. The individualistic tendencies of the past must give way to the training for group The social life and for democratic citizenship. Such an ldeaL ideal necessitates changes not only in subject matter, but also in school government. Courses in civic and social problems are splendid aids to good citizenship, but they must be supplemented by student activities. We learn good citizenship by trying to carry out its principles, rather than by studying them. We can learn democracy only by practicing it in our daily lives. If the social ideal within us does not find expression in some constructive work, it soon languishes. No student is too young to engage in some humble cooperative task or civic work. The school itself is a community in which the student should learn the principle of self-restraint for the good of the greatest number. Discipline imposed from above may at times be necessary, but it is a poor substitute for student self-government. School spirit in the youthful soul is akin to the patriotism of maturity. It should be fostered not merely as an emotional sentiment, but also as a rational means of social control. QUESTIONS FOR DISCUSSION 1. Trace the development of national school systems in Europe. 2. How has the progress of democracy stimulated this movement? 3. Compare the present school systems (elementary, secondary, and higher) of England, France, and Germany with our own. 4. Discuss education in colonial America. 5. Sketch our educational progress in the last century. 6. Give the effect of the scientific movement upon education. 7. Explain the sociological tendency in education. 8. Discuss the industrial education and the continuation schools of Germany. 558 Problems of American Democracy 9. What is the United States doing in this respect? 10. Show the progress of commercial education in the United States. 11. Discuss the value of agricultural schools. 12. Enumerate the social activities of the school. 13. What agencies for social betterment are now cooperating with the school? 14. Describe the work and possibilities of a school used as a community center. 15. Name some other agencies for popular education? 16. Describe the work of the one in which you are most interested. 17. Summarize the causes that have made educational readjust- ment necessary. 18. Apply the social ideal of education to school administration. 19. Describe the work of some student-governing body in your school. 20. Defend or criticize the placing of this course in problems of democracy in your curriculum. TOPICS FOR SPECIAL REPORT 1. The old Chinese system of education. 2. Cultural ideals in education — origin, growth, and present status. 3. Student life in the Middle Ages. 4. Some famous public schools of England. 5. Educational institutions of Germany — (e. g., Gymnasia and Realschule). 6. The secularization of the schools of Europe — (e. g., in France). 7. Democratic ideals in American education. 8. Linking the school with industry. 9. The Home and School Movement in your community. 10. Pioneers in modern educational movements. REFERENCES Boone, R. G. Education in the United States. Burch, H. R. The Economic and Social Side of the School Curriculum. Dewey, J. Democracy and Education. Public Education in a Democracy 559 Dewey, J. Schools of To-Morrow. Gillette, J. M. Vocational Education. Graves, F. P. A History of Education in Modem Times. Graves, F. P. A Student's History of Education. King, I. Education for Social Efficiency. Monroe, P. A Brief History of Education. Chapters I to VII and XII to XIV. Spencer, H. Education. CHAPTER XL The Widening Morality and Social Progress I. The evolution of morality i . Its instinctive basis 2. Its social origin 3. Group standards 4. Stages of progress 5. Society and the individual 6. The role of altruism II. Moral adjustment 1. The aim of adjustment 2. Social morality 3. The Church and social reform III. The nature of progress 1. Is progress possible? 2. Different interpretations 3. Value of the individual 4. A problem of adjustment 5. Progress a two-fold process 6. Conscious evolution The Evolution of Morality. — Morality may be denned as the code of conduct governing the relations between individuals. It takes different forms with Its instinctive various peoples and undergoes changes through- out long periods of time. Thus the morality of the Japanese is different from that of Americans, while the conduct of civilized man is altogether at variance with that of primitive people. Indeed, there may have been a 560 The Widening Morality and Social Progress 561 time in the history of primitive society when man was unmoral, that is, neither moral nor immoral. During this period of man's development his instincts were so intense and his mentality so undeveloped that he was probably unable to formulate any definite standards of conduct. At this time his actions were largely instinctive, that is, he followed his natural impulses. In fact, some uncivilized tribes of to-day are not far above this level, and the conduct of very young children, who have as yet formed no con- ceptions of right and wrong, closely resembles that of uncivilized people. In both of these cases instinct or nat- ural impulse plays the dominant part in determining human action. Only with the growth of civilization and the advance of education is man enabled to exercise an effective control over his instinctive actions. In this he is dis- tinguished from the lower animals in which even such admirable qualities as devotion and mother love are based largely upon mere biological necessity. These must therefore be regarded as instinctive rather than moral attributes. In conquering his anti-social instincts man has had a long up-hill struggle. Indeed, even to-day, in considering the morality of civilized man, this instinctive basis of human conduct must not be underestimated. Man is always struggling between good and bad instincts, between desirable and undesirable impulses, between social and anti-social actions. With the advance of civilization the instincts are largely replaced by the human reason in formulating rules of con- duct. Intelligence becomes a factor in guiding i ts social blind instinct, and progress is marked by a ongm - greater use of the intellect in making distinctions between right and wrong actions. But early morality is not only KK 562 Problems of American Democracy instinctive; it is also largely social in character and its origin stretches far back into the remote past. The beginnings of a crude morality first resulted from the necessities of group life. Men could not live together without agreeing upon certain rules of conduct for the regulation of their daily lives. In this manner there developed that most characteristic of all institutions of early society — the fixed customs or methods of action prescribed for the group by constant usage. The test of conduct was its effect upon the group. Whenever certain actions, of instinctive or chance origin, proved themselves to be of value to group survival they became crystallized into fixed customs. On the other hand, whatever by chance or experience proved harmful to the group was frowned upon by society and finally became "taboo." In this manner, it frequently happened that irrational ideas based upon mere superstition became part of the fixed social tradition. We have already seen that standards of conduct vary among different peoples. The mores or customs of the Group group determine what is right and what is standards. wron g. Thus, cannibalism is a sacred rite in the moral code of certain savage tribes, while the sacrifice to the gods of youths and maidens was a religious duty among such an otherwise advanced people as the Aztecs. Christian ethics commands "love your enemies," but vengeance is the rule among the heathen savage. On the other hand, the moral code of primitive communistic societies would not sanction our ethics of individual property rights. Thus in static societies, where codes of conduct are rigid and inflexible, man's attitude toward conduct is largely colored by the inherited ideas of his group. From The Widening Morality anal Social Progress 563 this point of view, an individual should be called good or bad only in the light of his social environment. He is considered the most moral who best lives up to the ethical standards of his group — whatever they may be. Even the greatest moral philosophers of antiquity, like Confucius and Socrates, must be considered in the light of their age and civilization. Individual morality is a greater or less variation from the standards of the group. Moreover, another social characteristic of morality lies in the fact that there may be two separate standards of conduct, — one applicable to members of the group and another applicable to outsiders. Thus the savage might indis- criminately scalp those outside the group, but not his fellow tribesmen. Again, the colonists of America often regarded the Indian as an inferior creature who might be robbed of his lands, but they were most scrupulous in their ethical relations toward each other. The widening morality of the present age attempts to obliterate this distinction by formulating one code of ethics applicable to all nations of the world. There are three stages of progress in the development of morality — the negative, the transitional, and the positive. In early civilizations certain prohibitions — known stages of as the " taboo " — are placed upon man's conduct, P r °s ress - and obedience is secured through fear of punishment. But a civilization founded upon mere prohibition, like the "taboo" of the savage, is necessarily backward and unreasoning. It assumes that men are too wicked or ignorant to act positively for the attainment of group welfare. Primitive man was forcibly restrained from com- mitting certain actions inimical to group interests through fear of punishment or social ostracism. In fact, our own 564 Problems of American Democracy method of suppressing crime by intimidation is a survival of this theory of morality. The next stage of moral development is an advance over that of mere prohibition. When a certain social custom was seen to be partly good and partly bad, some scheme of discrimination was devised by the growing intelligence. This power of intellectual consideration showed that the group had advanced in its attitude toward human conduct. It may well be illustrated by Roman civilization, in which the spirit of com- promise was developed and handed down to later genera- tions. The problem was looked at from the standpoint of group interests, and an attempt was made to arrive at a course of conduct best suited to the general welfare. This transitional period naturally merged into the positive stage of social morality in which the restrictions or pro- hibitions on human conduct play a diminishing role. Here society bends all its efforts toward the attainment of definite ideals. Social progress toward this higher stage is, however, retarded by the existence of vicious and ignorant individuals who will not of their own accord follow the course of action approved by the group. At present the civilized world is standing on the threshold of a still broader morality — a morality of the world order. This is the international aspect of social morality. This morality is not only positive, striving for the attainment of definite ideals, but also humanitarian, endeavoring to embrace within its operation all lands and peoples. The great problem of modern morality is that of recon- ciling the interests of the individual with those of society. The clash of selfish personal desires with social interests has been an age-long conflict. Early civilizations in their attempts to develop group morality frequently followed The Widening Morality and Social Progress 565 irrational folkways which were rigidly enforced by law and religion. Moreover, with the growth of social classes, the few claimed the right to decide what was best „ . Society for the social interest. It thus happened that and the . individual. frequently their own ideas and interests colored the social fabric of human institutions. Against these traditional ideas of the dominant classes, reformers and prophets arose to preach the falsity of current beliefs and practices. Thus, Socrates taught a nobler code of ethics than that of the Sophists, and the Founder of Christianity rebuked the Pharisees, who followed the letter rather than the spirit of the law. Individuals in advance of their age may suffer martyrdom for insisting upon the right to follow the dictates of their own consciences when these come into conflict with the accepted ideas of society. Subse- quent history discloses whether or not they have succeeded in their attempt to advance the group morality to a higher level. However, those who refuse to conform to the cur- rent morality may be not only those who rise above it, but also those who fall below it. Each age has not only its reformers, but also those who are egoistic or even vicious enough to insist upon the acceptance of their own point of view irrespective of society's mandates. In the treatment of non-conformists society must choose between a policy of toleration and one of repression. An inflexible civilization deals out the same fate alike to the non-con- forming idealist and to the criminal ; for the offense in both cases is one against group morality. A higher civiliza- tion strives to work out the problem of how an individual may obey the moral code of the group and at the same time follow the dictates of his conscience. In this manner the group ethics becomes less rigid and more elastic. A con- 566 Problems of American Democracy stant moral readjustment must go on in a progressive society, the ideals of which are ever advancing. Altruism, or consideration for others, is an important factor in the widening of morality. Its origin may be The role of traced to the biological fact of parenthood and altruism. ^ Q ^ e increasing length of the period of infancy. Its value in group survival increases with the advance of civilization because cooperation has proved to be a favor- able element in the process of selection at work in human society. Nevertheless it is true that man has had to struggle not only against his physical environment, but also against his fellow man. However, along with this struggle for his own existence, went man's struggle for the lives of his fellows. Altruism and self-interest have clashed at times, but the former has steadily increased in importance. It has become more purposive in modern society because it is directed by the growing human intelligence. Thus it is that slavery has disappeared in all civilized lands. Mod- ern altruism is content not merely with temporary allevia- tion of distress, but it seeks to banish the very causes of human misery. Again, the social circle within which altruism operates has constantly widened, until to-day it embraces the whole human race. Sympathy is felt not only toward members of the family and those with whom we come into personal contact, but toward all those embraced within the nation. Indeed sympathy to-day, like culture and commerce, is international in its manifestations. Generous help is extended to far- distant peoples in distress, as well as to those within our own national boundaries. Patriotism or love of country is an intensely national aspect of altruism and cooperation. The Widening Morality and Social Progress 567 Moral Adjustment. — If civilization is not to remain static, moral ideas must become more rational with every period of historical evolution. To attain higher The aim of levels of morality constant readjustments are ad i ustment - therefore necessary. Viewed in this light, the moral sys- tems of the past represented the attempts of their foun- ders to bring the group morality up to the standard of the new social ideals. The process of adjustment was some- times evolutionary, and sometimes revolutionary. At the present time, society is attempting to develop a positive system of group morality in which each individual plays an active part. The primitive "taboo" of early society may be well enough for ignorant savagery, but it is essen- tially antagonistic to modern social ideals. The morality of freedom should supersede that of compulsion without danger to the social order. This development is rendered difficult, however, by the growing complexity of society and by the multiplicity of human relationships. The indi- vidual must exercise an intelligent discrimination against acts harmful to the social welfare. He must seek not merely to avoid a penalty, but rather to attain the happiness which lies in social well-being. This ideal is becoming the new basis of social progress. It believes in the realization of the possibilities of group action. According to this belief, it is the duty of society to eliminate as far as possible social and economic handicaps in order that man may attain free development and the highest happiness. This objective method may be known as the improvement of man's environment. From the subjective side, the highest social ideals should be impressed upon the heart and mind of the growing individual. Thus a social morality of an ever-widening character 568 Problems of American Democracy is the great need of the present age. In earlier times it was thought proper for the individual to flee from the wicked- Social n ess of the world in order to save his own soul, morality. j n ^ twentieth century, such conduct would be regarded as purely negative in the social good accom- plished. Social morality, however, does not underestimate individual goodness. Virtue is personal and a society can be only as moral as the individuals composing it. The modern view of morality does, however, estimate the good- ness or badness of an act by its social, rather than its indi- vidual, consequences. Thus, a crime against society is of more social significance than an individual vice, although society does not, for a single instant, condone the act of vice. When men lived in comparative isolation, a social morality was not so imperative. The modern age, however, is as social as our civilization is cosmopolitan. Morality, like culture, is becoming international in character. The widening of commercial relations broadens the intellectual horizon and tends toward the development of uniform moral standards. But, although division of labor in mod- ern industrial society makes individuals mutually depen- dent upon each other, this interdependence is remote and indirect. We have, for example, little direct communica- tion with those who manufacture our foods, build our houses, and make our laws. Who indeed, to-day, is our neighbor? He is invisible but effective. Hence the need of a wider and more far-reaching social morality. Men may hesitate to rob orphans and widows, but they unblushingly sell goods of an inferior quality to the general public. The long-range crimes of the present century make necessary, therefore, a similar long-range morality. In conclusion, let us state that the widen- The Widening Morality and Social Progress 569 ing social morality insists that a man is his brother's keeper and interprets in the widest possible sense the term "brother." The Great Teacher, in denning the greatest law, added the corollary "Love thy neighbor as thyself." We are at present still far removed from this exalted ideal of humanitarianism; nor have we yet and social reform. attained the new world order. The Church, however, has always been a philanthropic institution. Let us not forget that the medieval monks performed pioneer social work. By practical example, they taught the dignity of manual labor, as well as the art of philanthropy. Mon- asteries were retreats for the sick of body, as well as for the sick of heart. Here were received the weary traveler, the orphan, and the pauper. With the Renaissance and the breaking up of the medieval system, the spirit of indi- vidualism wrought changes in religious ideals. The prin- ciple of authority gradually gave way to that of individual responsibility in which the direct relationship between God and man was emphasized. At present, too, it would seem that the Church is going through another period of read- justment, in which character rather than creed occupies the dominating position. Sectarianism declines with the rise of the ideal of social service. Thus the twentieth cen- tury witnesses the Church fulfilling the mission of its Founder, spreading its altruistic spirit throughout society, and cementing once more the broken fabric of civilization. To accomplish this end, it becomes the stanch ally of the family, the school, and the State, in their combined attack upon the obstacles that lie in the path of human progress. The Church, itself, instills into this work of regeneration the vital spirit of hope and human sympathy. 570 Problems of American Democracy The Nature of Progress. — Aside from the problem of immediate social reform, what are the possibilities of is progress ultimate human progress? Our answer to this possible? question will depend upon our attitude toward the idea of progress. This term has been variously inter- preted by different writers, and, indeed, some have even denied the existence of progress. For proof of their posi- tion they point to the welter of confusion and the destruc- tion of life and property that followed the world cataclysm of 1914, which almost resulted in the prostration of civil- ized Christendom. Again, in the nineteenth century, such an eminent essayist as John Ruskin regarded the great Industrial Revolution, through which England had just passed, as a step backward rather than forward, for the majority of mankind. Admitting that the advance of civilization is uneven, it does not necessarily follow that the march of centuries has not been marked by a progres- sive, if uneven, development. On the contrary, it seems rational to assert that society has progressed in a certain orderly fashion from prehistoric days to the present time. One group of writers Different J . . - . 11 j ' 1 interpre- who take this point of view are called evolu- tionists. They look at the problem of social progress from the standpoint of selection and adaptation. To some it is an unconscious and undirected process in which natural selection is the determining factor. Hence they deny all moral implications in the process. To them progress is the result of a favorable geographical environ- ment, endowed with a temperate climate, sufficient rainfall, and abundant natural resources. They are known as geo- graphical determinists and would give us a purely economic interpretation of history. Other interpreters of progress The Widening Morality and Social Progress 571 stress heredity, rather than environment, as the dominating factor in the advance of society. According to these writers certain races, representing superior biological stocks, have through their contributions to civilization made possible the accumulated progress of society. Through their military and peaceful conquests, the advance of backward races and of the world in general has been accomplished. Within a particular group itself these biological differences are also discernible. Hence certain individuals possessed of superior physical and mental qualities are enabled through intermarriage to transmit these qualities, which form the basis for future progress, to succeeding generations. Such prophets of progress are known as eugenists. Again, other writers have interpreted and explained progress in terms of dominant men and great institutions. It is well to keep constantly in mind the impor- tance of the individual in determining the course the in- . . . dividual. of human progress. The power of the individual in shaping social institutions is a vital factor in social progress as well as in the formation of moral systems. In fact, the basis of human progress is the individual. In his Representative Men, Emerson goes so far as to assert that an institution is but the lengthened shadow of a single individual. It is beyond question that the personal element or equation is a vital factor in the attainment of both progress and social morality. In his Heroes and Hero Worship, Carlyle has expounded, with perhaps undue elaboration, the " great man theory" of history and progress. The student may well be confused by such a variety of interpretations of human progress in each of which there is 572 Problems of American Democracy an element of truth and justice. Perhaps these elements may best be combined by regarding progress from still another point of view. In our survey of the more A problem r J of adjust- important problems of American democracy we merit. . . . . have viewed progress as a series of adjust- ments. Obstacles in the upward path of society have been treated as economic and moral handicaps which the State attempts to remove by the force of cooperation and other human inventions. In this process the State itself has suffered changes and improvements, for never has a perfect commonwealth been reared by the efforts of man. As society progresses, social ideals are constantly advanc- ing. The problems of one age are succeeded by those of another, the solution of which results in the attainment of higher progress. George Eliot has said that the chief reward of virtue is an increased capacity for being good. In a similar manner, the chief result of successive progres- sive adjustments is the ability of society to attain higher levels of progress. In viewing the problem of progress from the standpoint of social adjustment, we have observed the constant „ operation of the twin forces of heredity and Progress r t J a two-fold environment. Undoubtedly one method of process. . . . furthering progress in American democracy lies in the improvement of the biological or physical heredity of the nation. This may be accomplished through a careful selective process and through the sane application of eugenic principles to society. Not only should the biological stocks at present within the nation be subjected to the process of selection, but this process should be applied to those foreign peoples seeking admittance to our shores. Without passing judgment upon the abstract The Widening Morality and Social Progress 573 question of race superiority, recent investigations in the United States seem to point to the mental and physical superiority of the older American stocks. If this superiority is to be maintained, the original stocks must not be unduly weakened or contaminated. Viewing social progress from the standpoint of improvements in the environment, we have observed in the course of our study how the life of a people is profoundly influenced by both physical and social surroundings. On the physical side, man's conquest of nature has steadily advanced. Primitive man fled in terror from the very elements which civilized man has harnessed at his bidding. On the social side also, man's environment has constantly improved and widened. No longer are men bound by outworn traditions which at every turn hamper the attainment of progress. A new call to arms has been sounded against poverty, disease, political corruption, and economic exploitation. Through education, the social environment of many Americans is being completely transformed. Since most acquired char- acteristics cannot be transmitted, each generation begins anew the battle for progress, which in turn is aided by the progressive changes wrought by past generations in the great institutions of society. Finally, we must remember that evolution is not neces- sarily progress, but that progress is conscious evolution. Man has moulded the original process of evolu- Conscious tion to suit the needs of his modern environment. evolution * That is, in civilized societies, natural selection has largely given way to artificial selection. In the former process, evolution was a blind, unconscious adaptation of the organ- ism to the environment. Through variation, certain types were found to be better suited to given conditions and their 574 Problems of American Democracy characteristics were transmitted through heredity to posterity. Moral qualities and progressive attributes were merely the by-products of this hard, implacable struggle for existence. Artificial selection, however, gives to these very qualities a dominant position in the selective process. They become true requisites of sur- vival. Instinct gives way to reason, and the individual himself becomes the radiating center of moral and social progress. He controls the blind forces of nature and directs the course of human evolution. In this manner, man becomes the responsible, directive element in social progress. To this extent, he is the master of his fate and the maker of his destiny. QUESTIONS FOR DISCUSSION. i. What part does instinct play in human conduct? 2. Trace the social origin of morality. 3. What is the effect of the mores of the group upon the conduct of the individual? 4. Explain the stages in moral progress. 5. Discuss two different classes of individual non-conformists to the current morality approved by the group. 6. What policies toward them may society follow? 7. In what way does modern altruism differ from the earlier altruism? 8. Why does progress necessitate a constant moral adjustment? 9. Why is a social morality especially necessary for the present age? 10. How do you think that it can best be developed? 11. Discuss the past philanthropic work of the Church. 12. What is the Church now doing for social welfare? 13. What is your church doing? What else can it do? 14. How may the Church aid in teaching social morality? 15. Explain the economic interpretation of history. 16. Explain the eugenic interpretation of social progress. The Widening Morality and Social Progress 575 17. Name and illustrate another theory of progress. 18. Why is progress never-ending? 19. What are the twin forces of social progress? Explain each. 20. What do you think of the possibilities of progress in the future? TOPICS FOR SPECIAL REPORT 1. Moral and religious ideas among the Indians. 2. The social ethics of some great religious teachers, like Buddha and Confucius. 3. The non-conformist in history. 4. An analysis of the most essential present-day moral qualities. 5. The Church as a factor in social progress. 6. The "great man theory" of history. 7. The World War and social progress. . 8. Changing ideas of right and wrong from century to century. 9. The development of group morality in America during the World War. 10. The progressive character of Christianity on both the moral and the religious side. 11. Germany's false "Kultur" idea of progress. 12. Effects of the Washington Conference (i92i-'22) on world morality and social progress. REFERENCES Carver, T. N. Essays in Social Justice. Dealey, J. Q. Sociology. Chapter VII. Hayes, E. C. Introduction to a Study of Sociology. Chapter XXX. Patten, S. N. New Basis of Civilization. Patten, S. N. The Social Basis of Religion. Richmond, M. Social Diagnosis. Ross, E. A. Social Control. Sin and Society. Stelzle, C. American Social and Religious Conditions. Chapter XI. Thompson, R. E. The Divine Order of Human Society. Todd, A. J. Theories of Social Progress. APPENDIX- CONSTITUTION OF THE UNITED STATES PREAMBLE We, the people of the United States, in order to form a more perfect Union, establish justice, insure domestic tranquillity, provide for the common defence, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America. ARTICLE I LEGISLATIVE DEPARTMENT Section i. Two Houses i. All legislative powers herein granted shall be vested in a Con- gress of the United States, which shall consist of a Senate and House of Representatives. Section 2. House of Representatives 1. The House of Representatives shall be composed of members chosen every second year by the people of the several states, and the electors in each state shall have the qualifications requisite for electors 1 of the most numerous branch of the state legislature. 2. No person shall be a Representative who shall not have attained to the age of twenty-five years, and been seven years a citizen of the United States, and who shall not, when elected, be an inhabitant of that state in which he shall be chosen. 3. Representatives and direct taxes shall be apportioned among the several states which may be included within this Union, according to their respective numbers, which shall be determined by adding to the whole number of free persons, including those bound to service 1 Voters. 576 Constitution of the United States 577 for a term of years, and excluding Indians not taxed, three-fifths of all other persons 1 . The actual enumeration shall be made within three years after the first meeting of the Congress of the United States, and within every subsequent term of ten years, in such manner as they shall by law direct. The number of Representatives shall not exceed one for every thirty thousand, but each state shall have at least one Representative; and, until such enumerations shall be made, the state of New Hampshire shall be entitled to choose three, Massachusetts eight, Rhode Island and Providence Plantations one, Connecticut five, New York six, New Jersey four, Pennsylvania eight, Delaware one, Maryland six, Virginia ten, North Carolina five, South Carolina five, and Georgia three. 4. When vacancies happen in the representation from any state, the executive authority thereof shall issue writs of election to fill such vacancies. 5. The House of Representatives shall choose their Speaker and other officers; and shall have the sole power of impeachment. Section 3. Senate 1. The Senate of the United States shall be composed of two Senators from each state chosen by the legislature thereof 2 for six years; and each Senator shall have one vote. 2. Immediately after they shall be assembled in consequence of the first election, they shall be divided, as equally as may be, into three classes. The seats of the senators of the first class shall be vacated at the expiration of the second year; of the second class, at the expiration of the fourth year; and of the third class, at the expira- tion of the sixth year; so that one-third may be chosen every second year; and if vacancies happen by resignation, or otherwise, during the recess of the legislature of any state, the executive thereof may make temporary appointments until the next meeting of the legis- lature, which shall then fill such vacancies. 3 3. No person shall be a Senator who shall not have attained to the age of thirty years, and been nine years a citizen of the United 1 Annulled by the Thirteenth and Fourteenth Amendments. - Superseded by the Seventeenth Amendment. 3 See Seventeenth Amendment. LL 578 Problems of American Democracy States, who shall not, when elected, be an inhabitant of that state for which he shall be chosen. 4. The Vice-President of the United States shall be President of the Senate, but shall have no vote, unless they be equally divided. 5 . The Senate shall choose their other officers, and also a President pro tempore, in the absence of the Vice-President, or when he shall exercise the office of President of the United States. 6. The Senate shall have the sole power to try all impeachments. When sitting for that purpose, they shall be on oath or affirmation. When the President of the United States is tried, the Chief Justice shall preside; and no person shall be convicted without the concur- rence of two-thirds of the members present. 7. Judgment in cases of impeachment shall not extend further than to removal from office, and disqualification to hold and enjoy any office of honor, trust, or profit, under the United States; but the party convicted shall, nevertheless, be liable and subject to indict- ment, trial, judgment, and punishment, according to law. Section 4. Elections and Meetings of Congress 1 . The times, places, and manner, of holding elections for Senators and Representatives, shall be prescribed in each state by the legisla- ture thereof: but the Congress may at any time, by law, make or alter such regulations, except as to the places of choosing Senators. 2. The Congress shall assemble at least once in every year, and such meeting shall be on the first Monday in December, unless they shall by law appoint a different day. Section 5. Powers and Duties of the Houses 1, Each House shall be the judge of the elections, returns, and qualifications of its own members, and a majority of each shall constitute a quorum to do business; but a smaller number may adjourn from day to day, and may be authorized to compel the attendance of absent members, in such manner, and under such penalties, as each House may provide. 2. Each House may determine the rules of the proceedings, punish its members for disorderly behavior, and, with the concurrence of two-thirds, expel a member. Constitution of the United States 579 3. Each House shall keep a journal of its proceedings, and, from time to time, publish the same, excepting such parts as may, in their judgment, require secrecy; and the yeas and nays of the members "of either House, on any question, shall, at the desire of one-fifth of those present, be entered on the journal. 4. Neither House, during the session of Congress, shall, without the consent of the other, adjourn for more than three days, nor to any other place than that in which the two Houses shall be sitting. Section 6. Privileges of and Restrictions on Members 1. The Senators and Representatives shall receive a compensation for their services, to be ascertained by law, and paid out of the treasury of the United States. They shall, in all cases, except treason, felony, and breach of the peace, be privileged from arrest during their attendance at the session of their respective Houses, and in going to, and returning from, the same; and for any speech or debate in either House, they shall not be questioned in any other place. 2. No Senator or Representative shall, during the time for which he was elected, be appointed to any civil office under the authority of the United States, which shall have been created, or the emoluments whereof shall have been increased during such time; and no person, holding any office under the United States, shall be a member of either House during his continuance in office. Section 7. Revenue Bills: Veto of President 1. All bills for raising revenue shall originat'e in the House of Representatives; but the Senate may propose or concur with amend- ments as on other bills. 2 . Every bill which shall have passed the House of Representatives and the Senate, shall, before it become a law, be presented to the President of the United States; if he approve, he shall sign it, but if not, he shall return it, with his objections, to that House in which it shall have originated, who shaU enter the objections at large on their journal, and proceed to reconsider it. If, after such reconsideration, two-thirds of that House shall agree to pass the bill, it shall be sent, together with the objections, to the other House, by which it shall likewise be reconsidered, and, if approved by two-thirds of that House, it shall become a law. But in all such cases the votes of both 580 Problems of American Democracy Houses shall be determined by yeas and nays, and the names of the persons voting for and against the bill shall be entered on the journal of each house respectively. If any bill shall not be returned by the President within ten days (Sundays excepted) after it shall have been presented to him, the same shall be a law, in like manner as if he had signed it, unless the Congress, by their adjournment, prevent its return, in which case it shall not be a law. 3. Every order, resolution, or vote, to which the concurrence of the Senate and House of Representatives may be necessary (except on a question of adjournment) , shall be presented to the President of the United States; and before the same shall take effect, shall be approved by him, or, being disapproved by him, shall be repassed by two-thirds of the Senate and House of Representatives, according to the rules and limitations prescribed in the case of a bill. Section 8. Legislative Powers of Congress The Congress shall have power: 1. To lay and collect taxes, duties, imposts, and excises, to pay the debts, and provide for the common defence and general welfare, of the United States; but all duties, imposts, and excises, shall be uniform throughout the United States: 2. To borrow money on the credit of the United States: 3. To regulate commerce with foreign nations, and among the several states, and with the Indian tribes: 4. To establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies, throughout the United States: 5. To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures: 6. To provide for the punishment of counterfeiting the securities and current coin of the Unites States: 7. To establish post-offices and post-roads: 8. To promote the progress of science and useful arts, by securing, for limited times, to authors and inventors, the exclusive right to their respective writings and discoveries: 9. To constitute tribunals inferior to the Supreme Court: 10. To define and punish piracies and felonies, committed on the high seas, and offences against the law of nations : Constitution of the United States 581 11. To declare war, grant letters of marque and reprisal, and make rules concerning captures on land and water: 1 2 . To raise and support armies ; but no appropriation of money to that use shall be for a longer term than two years : 13. To provide and maintain a navy: 14. To make rules for the government and regulation of the land and naval forces: 15. To provide for calling forth the militia to execute the laws of the Union, suppress insurrections, and repel invasions: 16. To provide for organizing, arming, and disciplining the militia, and for governing such part of them as may be employed in the service of the United States, reserving to the states respectively the appointment of the officers, and the authority of training the militia, according to the discipline prescribed by Congress: 17. To exercise exclusive legislation in all cases whatsoever, over such district (not exceeding ten miles square) as may, by cession of particular states, and the acceptance of Congress, become the seat of the government of the United States, and to exercise like authority over all places, purchased by the consent of the legislature of the state in which the same shall be, for the erec- tion of forts, magazines, arsenals, dock-yards, and other needful buildings : — And 18. To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof. Section 9. Prohibitions upon the United States 1. The migration or importation of such persons, as any of the states, now existing, shall think proper to admit, shall not be pro- hibited by the Congress prior to the year one thousand eight hundred and eight; but a tax or duty may be imposed on such importation, not exceeding ten dollars for each person. 2 . The privilege of the writ of habeas corpus shall not be suspended, unless when, in cases of rebellion or invasion, the public safety may require it. 3. No bill of attainder, or ex post facto law, shall be passed. 582 Problems of American Democracy 4. No capitation, or other direct tax, shall be laid, unless in propor- tion to the census or enumeration hereinbefore directed to be taken. 1 5. No tax or duty shall be laid on articles exported from any state. 6. No preference shall be given by any regulation of commerce or revenue to the ports of one state over those of another; nor shall vessels bound to, or from, one state, be obliged to enter, clear, or pay duties, in another. 7. No money shall be drawn from the treasury, but in consequence of appropriations made by law; and a regular statement and account of the receipts and expenditures of all public money shall be published from time to time. 8. No title of nobility shall be granted by the United States; and no person holding any office of profit or trust under them shall, with- out the consent of the Congress, accept of any present, emolument, office, or title, of any kind whatever, from any king, prince, or foreign state. Section 10. Prohibitions upon the States 1. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility. 2. No state shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be abso- lutely necessary for executing its inspection laws; and the net produce of all duties and imposts, laid by any state on imports or exports, shall be for the use of the treasury of the United States; and all such laws shall be subject to the revision and control of the Congress. No state shall, without the consent of Congress, lay any duty of tonnage, keep troops, or ships of war, in time of peace, enter into any agree- ment or compact with another state, or with a foreign power, or engage in war, unless actually invaded, or in such imminent danger as will not admit of delay. 1 See Sixteenth Amendment. Constitution of the United States 583 ARTICLE II EXECUTIVE DEPARTMENT: THE PRESIDENT AND VICE-PRESIDENT Section I. Term: Election: Qualifications: Salary: Oath of Office 1. The Executive power shall be vested in a President of the United States of America. He shall hold his office during the term of four years, and together with the Vice-President, chosen for the same term, be elected as follows: 2. Each state shall appoint, in such manner as the legislature thereof may direct, a number of Electors, equal to the whole number of Senators and Representatives, to which the state may be entitled in the Congress; but no Senator or Representative, or person holding an office of trust or profit, under the United States, shall be appointed an Elector. 3. [The Electors shall meet in their respective states, and vote by ballot for two persons, of whom one, at least, shall not be an inhabitant of the same state with themselves. And they shall make a list of all the persons voted for, and of the number of votes for each; which list they shall sign and certify, and transmit, sealed, to the seat of the Government of the United States, directed to the President of the Senate. The President of the Senate shall, in the presence of the Senate and House of Representatives, open all the certificates, and the votes shall then be counted. The person having the greatest number of votes shall be the President, if such number be a majority of the whole number of Electors appointed; and if there be more than one, who have such majority, and have an equal number of votes, then the House of Representatives shall immediately choose, by ballot, one of them for President; and if no person have a majority, then, from the five highest on the list, the said House shall, in like manner, choose the President. But in choosing the President, the votes shall be taken by states, the representation from each state having one vote; a quorum for this purpose shall consist of a member or members from two-thirds of the states, and a majority of all the states shall be necessary to a choice. In every case, after the choice of the President, the person having the greatest number of votes of 584 Problems of American Democracy the Electors shall be the Vice-President. But if there should remain two or more who have equal votes, the Senate shall choose from them, by ballot, the Vice-President.] 1 4. The Congress may determine the time of choosing the Electors, and the day on which they shall give their votes; which day shall be the same throughout the United States. 5. No person, except a natural-born citizen, or a citizen of the United States at the time of the adoption of this Constitution, shall be eligible to the office of President; neither shall any person be eligible to that office, who shall not have attained to the age of thirty- five years, and been fourteen years a resident within the United States. 6. In case of the removal of the President from office, or of his death, resignation, or inability to discharge the powers and duties of the said office, the same shall devolve on the Vice-President, and the Congress may by law provide for the case of removal, death, resigna- tion or inability, both of the President and Vice-President, declaring what officer shall then act as President, and such officer shall act accordingly, until the disability be removed, or a President shall be elected. 7. The President shall, at stated times, receive for his services a compensation, which shall neither be increased nor diminished during the period for which he shall have been elected, and he shall not receive, within that period, any other emolument from the United States, or any of them. 8. Before he enter on the execution of his office, he shall take the following oath or affirmation : 9. "I do solemly swear (or affirm), that I will faithfully execute the office of President of the United States, and will, to the best of my ability, preserve, protect, and defend the Constitution of the United States." Section 2. President's Executive Powers 1. The President shall be Commander-in-Chief of the army and navy of the United States, and of the militia of the several states, when called into the actual service of the United States; he may require 1 Superseded by the Twelfth Amendment. Constitution of the United States 585 the opinion, in writing, of the principal officer in each of the executive departments upon any subject relating to the duties of their respective offices, and he shall have power to grant reprieves and pardons for offences against the United States, except in cases of impeachment. 2. He shall have power, by and with the advice and consent of the Senate, to make treaties, provided two-thirds of the Senators present concur; and he shall nominate, and, by and with the advice and con- sent of the Senate, shall appoint' ambassadors, other public ministers, and consuls, judges of the Supreme Court, and all other officers of the United States whose appointments are not herein otherwise provided for, and which shall be established by law; but the Con- gress may by law vest the appointment of such inferior officers, as they think proper, in the President alone, in the courts of law, or in the heads of departments. 3. The President shall have power to fill all vacancies that may happen during the recess of the Senate, by granting commissions which shall expire at the end of their next session. Section 3. President's Executive Powers {continued) 1. He shall, from time to time, give to the Congress information of the state of the Union, and recommend to their consideration such measures as he shall judge necessary and expedient; he may, on extraordinary occasions, convene both Houses, or either of them, and in case of disagreement between them, with respect to the time of adjournment, he may adjourn them to such time as he shall think proper; he shall receive ambassadors and other public ministers; he shall take care that the laws be faithfully executed, and shall com- mission all the officers of the United States. Section 4. Impeachment 1. The President, Vice-President, and all civil officers of the United States, shall be removed from office on impeachment for, and conviction of, treason, bribery, or other high crimes and misde- meanors. 586 Problems of American Democracy ARTICLE III JUDICIAL DEPARTMENT Section 1. Courts: Terms of Office 1. The judicial power of the United States shall be vested in one Supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish. The judges, both of the Supreme and inferior courts, shall hold their offices during good behavior, and shall, at stated times, receive for their services a compensation which shall not be diminished during their continuance in office. Section 2. Jurisdiction 1. The judicial power shall extend to all cases, in law and equity, arising under this Constitution, the laws of the United States, and treaties made, or which shall be made, under their authority; to all cases affecting ambassadors, other public ministers, and consuls; to all cases of admiralty and maritime jurisdiction; to controversies to which the United States shall be a party; to controversies between two or more states, between a state and citizens of another state, 1 between citizens of different states, between citizens of the same state claiming lands under grants of different states, and between a state, or the citizens thereof, and foreign states, citizens, or subjects. 2. In all cases affecting ambassadors, other public ministers and consuls, and those in which a state shall be a party, the Supreme Court shall have original jurisdiction. In all the other cases before mentioned, the Supreme Court shall have appellate jurisdiction, both as to law and fact, with such exceptions and under such regulations as the Congress shall make. 3. The trial of all crimes, except in cases of impeachment, shall be by jury; and such trial shall be held in the state where the said crimes shall have been committed; but when not committed within any state the trial shall be at such place or places as the Congress may by law have directed. 1 Modified by the Eleventh Amendment. Constitution of the United States 587 Section 3. Treason 1. Treason against the United States shall consist only in levying war against them, or in adhering to their enemies, giving them aid and comfort. No person shall be convicted of treason unless on the testimony of two witnesses to the same overt act, or on confession in open court. 2. The Congress shall have power to declare the punishment of treason, but no attainder of treason shall work corruption of blood or forfeiture, except during the life of the person attainted. ARTICLE IV RELATIONS OF STATES Section 1. Public Records 1 . Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state. And the Congress may, by general laws, prescribe the manner inVhich such acts, records, and proceedings shall be proved, and the effect thereof. Section 2. Rights in One State of Citizens of Another State 1 . The citizens of each state shall be entitled to all privileges and immunities of citizens in the several states. 1 2. A person charged in any state with treason, felony, or other crime, who shall flee from justice, and be found in another state, shall, on demand of the executive authority of the state from which he fled, be delivered up, to be removed to the state having jurisdiction of the crime. 3. No person held to service or labor in one state, under the laws thereof, escaping into another, shall, in consequence of any law or regulation therein, be discharged from such service or labor, but shall be delivered up on claim of the party to whom such service or labor may be due. Section 3. New States: Territories 1. New states may be admitted by the Congress into this Union; but no new state shall be formed or erected within the jurisdiction of 1 Compare Fourteenth Amendment. 588 Problems of American Democracy any other state, nor any state be formed by the junction of two or more states, or parts of states, without the consent of the legislatures of the states concerned as well as of the Congress. 2. The Congress shall have power to dispose of and make all needful rules and regulations respecting the territory or other property belonging to the United States; and nothing in this Constitution shall be so construed as to prejudice any claims of the United States, or of any particular state. Section 4. Protection to States by the Nation I. The United States shall guarantee to every state in this Union a republican form of government, and shall protect each of them against invasion; and on application of the legislature, or of the executive (when the legislature cannot be convened), against domestic violence. ARTICLE V AMENDMENT I. The Congress, whenever two-thirds of both Houses shall deem it necessary, shall propose amendments to this Constitution, or, on the application of the legislatures of two-thirds of the several states, shall call a convention for proposing amendments, which, in either case, shall be valid, to all intents and purposes, as part of this Constitution, when ratified by the legislatures of three-fourths of the several states, or by conventions in three-fourths thereof, as the one or the other mode of ratification may be proposed by the Congress: provided that no amendment which may be made prior to the year one thousand eight hundred and eight shall in any manner affect the first and fourth clauses in the ninth section of the first Article; and that no state, without its consent, shall be deprived of its equal suffrage in the Senate. ARTICLE VI NATIONAL DEBTS: SUPREMACY OF NATIONAL LAW: OATH I. All debts contracted and engagements entered into, before the adoption of this Constitution, shall be as valid against the United States under this Constitution as under the Confederation. Constitution of the United States 589 2 . This Constitution, and the laws of the United S tates which shall be made in pursuance thereof, and all treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the constitution or laws of any state to the contrary notwithstanding. 3. The Senators and Representatives before mentioned, and the members of the several state legislatures, and all executive and judicial officers, both of the United States and of the several states, shall be bound, by oath or affirmation, to support this Constitution; but no religious test shall ever be required as a qualification to any office or public trust under the United States. ARTICLE VII ESTABLISHMENT OF CONSTITUTION 1. The ratification of the conventions of nine states shall be sufficient for the establishment of this Constitution between the states so ratifying the same. AMENDMENTS 1 ARTICLE I FREEDOM OF RELIGION, OF SPEECH, AND OF THE PRESS: RIGHT OF PETITION Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances. ARTICLE II RIGHT TO KEEP ARMS A well-regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed. 1 The first ren Amendments, known as the Bill of Rights, were adopted in 1791. 590 Problems of American Democracy ARTICLE III QUARTERING OF SOLDIERS IN PRIVATE HOUSES No soldier shall, in time of peace, be quartered in any house, without the consent of the owner; nor, in time of war, but in a manner to be prescribed by law. ARTICLE IV SEARCH WARRANTS The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated; and no warrants shall issue, but upon probable cause, sup- ported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized. ARTICLE V CRIMINAL PROCEEDINGS No person shall be held to answer for a capital,- or otherwise infamous, crime, unless on a presentment or indictment of a grand jury, except in cases arising in the land or naval forces, or in the militia, when in actual service, in time of war, or public danger; nor shall any person be subject, for the same offence, to be twice put in jeopardy of life or limb; nor shall be compelled, in any criminal case, to be a witness against himself; nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation. 1 ARTICLE VI CRIMINAL PROCEEDINGS {continued) In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the state and district wherein the crime shall have been committed, which district shall have been previously ascertained by law; and to be informed of the nature and cause of the accusation ; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor; and to have the assistance of counsel for his defence. 1 See Amendment XIV, Sec. i, which extends part of this restriction to the States. Constitution of the United States 591 ARTICLE VII JURY TRIAL IN CIVIL CASES In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved; and no fact, tried by a jury, shall be otherwise re-examined in any court of the United States than according to the rules of the common law. ARTICLE VIII EXCESSIVE PUNISHMENTS Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted. ARTICLE IX UNENUMERATED RIGHTS OF THE PEOPLE The enumeration in the Constitution of certain rights shall not be construed to deny or disparage others retained by the people. ARTICLE X POWERS RESERVED TO STATES The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respect- ively, or to the people. ARTICLE XIi SUITS AGAINST STATES The judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by citizens of another state,, or by citizens or subjects of any foreign state. ARTICLE XII ELECTION OF PRESIDENT AND VICE-PRESIDENT 1. The Electors shall meet in their respective states, and vote by ballot for President and Vice-President, one of whom, at least, shall 1 Adopted in 179S to protect the sovereignty of the States. 59 2 Problems of American Democracy not be an inhabitant of the same state with themselves; they shall name in their ballots the person voted for as President, and in distinct ballots the person voted for as Vice-President; and they shall make distinct lists of all persons voted for as President, and of all persons voted for as Vice-President, and of the number of votes for each, which lists they shall sign, and certify, and transmit, sealed, to the seat of the Government of the United States, directed to the President of the Senate; the President of the Senate shall, in the presence of the Senate and the House of Representatives, open all the certificates, and the votes shall then be counted; the person having the greatest number of votes for President shall be the President, if such number be a majority of the whole number of Electors appointed; and if no person have such a majority, then, from the persons having the highest numbers, not exceeding three, on the list of those voted for as Presi- dent, the House of Representatives shall choose immediately, by ballot, the President. But in choosing the President, the votes shall be taken by states, the representation from each state having one vote; a quorum for this purpose shall consist of a member or members from two-thirds of the states, and a majority of all the states shall be necessary to a choice. And if the House of Representatives shall not choose a President, whenever the right of choice shall devolve upon them, before the fourth day of March next following, then the Vice-President shall act as President, as in case of the death, or other constitutional disability, of the President. 1 2. The person having the greatest number of votes as Vice-Presi- dent, shall be the Vice-President, if such number be a majority of the whole number of Electors appointed; and if no person have a majority, then, from the two highest numbers on the list, the Senate shall choose the Vice-President; a quorum for the purpose shall consist of two-thirds of the whole number of Senators; a majority of the whole number shall be necessary to a choice. 1 3. But no person constitutionally ineligible to the office of Presi- dent shall be eligible to that of Vice-President of the United States, 1 Adopted in 1S04, superseding Article II, Sec x. Constitution of the United States 593 ARTICLE XIII 1 SLAVERY Section 1. Abolition of Slavery Neither slavery nor involuntary servitude, except as a punishment for crime, whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdic- tion. Section 2. Power of Congress Congress shall have power to enforce this article by appropriate legislation. ARTICLE XIV 2 CIVIL RIGHTS: APPORTIONMENT OF REPRESENTA- TIVES: POLITICAL DISABILITIES: PUBLIC DEBT Section 1. Civil Rights All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the state wherein they reside. No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any state deprive any person of life, liberty, or property, without due process of law, nor deny to any person within its jurisdiction the equal protection of the laws. Section 2. Apportionment of Representatives Representatives shall be apportioned among the several states according to their respective numbers, counting the whole number of persons in each state, excluding Indians not taxed. But when the right to vote at any election for the choice of electors for President and Vice-President of the United States, Representatives in Congress, the executive and judicial officers of a state, or the members of the legis- lature thereof, is denied to any of the male inhabitants of such state, being twenty-one years of age, and citizens of the United States, or 1 Adopted in 1865. = Adopted in 1868. MM 594 Problems of American Democracy in any way abridged, except for participation in rebellion or other crime, the basis of representation therein shall be reduced in the pro- portion which the number of such male citizens shall bear to the whole number of male citizens twenty-one years of age in such state. Section 3. Political Disabilities No person shall be a Senator or Represenative in Congress, or elector of President and Vice-President, or hold any office, civil or military, under the United States, or under any state, who, having previously taken an oath, as a member of Congress, or as an officer of the United States, or as a member of any state legislature, or as an executive or judicial officer of any state, to support the Constitution of the United States, shall have engaged in insurrection or rebellion against the same, or given aid or comfort to the enemies thereof. But Congress may, by a vote of two-thirds of each House, remove such disability. Section 4. Public Debt The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any state shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations, and claims shall be held illegal and void. Section 5. Powers of Congress The Congress shall have power to enforce, by appropriate legisla- tion, the provisions of this article. ARTICLE XV 1 RIGHT OF SUFFRAGE Section 1. Right of Negro to Vote The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any state on account of race, color, or previous condition of servitude. 1 Adopted in 1870. Constitution of the United States 595 Section 2. Power of Congress The Congress shall have power to enforce this article by appropriate legislation. ARTICLE XVI 1 INCOME TAX The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration. ARTICLE XVII 2 SENATE: ELECTION: VACANCIES The Senate of the United States shall be composed of two Senators from each state, elected by the people thereof, for six years; and each Senator shall have one vote. The electors in each state shall have the qualifications requisite for electors of the most numerous branch of the state legislatures. When vacancies happen in the representation of any state in the Senate, the executive authority of such state shall issue writs of election to fill such vacancies: Provided, That the legislature of any state may empower the executive thereof to make temporary appoint- ment until the people fill the vacancies by election as the legislature may direct. This amendment shall not be so construed as to affect the election or term of any Senator chosen before it becomes valid as part of the Constitution. ARTICLE XVIII 3 NATIONAL PROHIBITION Section i — After one year from the ratification of this article the manufacture, sale or transportation of intoxicating liquors within, the importation thereof into, or the exportation thereof from the United States and all territory subject to the jurisdiction thereof for beverage purposes is hereby prohibited. Adopted in 1913. 2 Adopted in 1013. 3 Adopted in 1919. 596 Problems of American Democracy Section 2 — The Congress and the several States shall have con- current power to enforce this article by appropriate legislation. Section 3 — This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by the legislatures of the several States, as provided in the Constitution, within seven years of the date of the submission hereof to the States by Congress. ARTICLE XIX l WOMAN SUFFRAGE Section i — The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of sex. Section 2 — Congress shall have power to enforce this article by appropriate legislation. 1 Adopted in 1920. INDEX Accessibility, 15. Adjustment, 4 et seq., 540, 567. Agricultural resources, 197, 198. Almshouse, 452 et seq. Altruism, 566. Amendments, 71. American Federation of Labor, 360 seq. American state, 57 et seq. Appropriation bills, 93. Asiatic immigration, 172 et seq. Australian ballot, 101. B Ballot, 101. Banking: Federal Reserve Act, 312 et seq. National Banking Act, 311 et seq. state institutions, 314. Barter, 304, 305. Bill drafting, 91 et seq. Bill of Rights, 71. Bimetallism, 310 et seq. Birth rates, 150, 151. Blacklists, 372. Blind, 500 et seq. Bonds, 254. Boycotts, 372. British cabinet government, 79. Budgets: family, 421 et seq. system, 93. Business: enterpriser, 248, 249. organization, 248 et seq. Cabinet government, 78, 79. Capital, 224 et seq., 234 et seq., 248 el seq. Capital punishment, 495. Charity, 445 et seq Checks and balances, 77. Child: labor, 386 et seq. offenders, 496 et seq. Church, 567 et seq. Citizenship: duties, 85 et seq. in territories, 105. City: charters, 128. congestion, 118 et seq. distribution, 112, 113. early conditions, ine( seq. franchises, 136, 137. government, 1 2 7 et seq. growth, 1 1 2 et seq. health, 121 et seq. legal character, 127. manager, 131. planning, 114, 115. political corruption, 129. state, 51. utilities, 134. Civil Service Reform, 101. Clan, 50. Clayton Act, 268, 359. Climatic influences, 19 et seq. Closed shop, 368. Collective bargaining, 367 et seq. Commercial expansion, 298 et seq. Commission government, 130. Commissions on industrial relations, 375 et seq. Committees of Congress, 91. Competition: effects, 35. wastes, 347. Compulsory arbitration, 377. Congestion, 1 1 8 et seq. Congressional government, 78, 79. Conservation: human, 385 et seq natural resources, 208 et seq. 597 598 Index Consumers' League, 372, 390. Constitutional: amendments, 71. guarantees, 71. Cooperation, 6, 35, 37, 236 et seq., 371 ci seq., 380 e2 se^. Cooperative movement, 380 et seq. Corporation: advantages, 250, 251. character, 250. organization, 252, 253. promotion, 251 et seq. securities, 253, 254. social dangers, 255 et seq. Country life, 1 24. Courts, 77. Court of Industrial Relations, 377. Crime, 464 et seq. Crippled, 505 et seq. Crowd, 29 et seq. Currency, 304 et seq. Customs, 24 et seq. D Deaf, 503 et seq. Death rates, 153 et seq. Defectives, 499 et seq. Delinquents, 464 et seq. Dependents, 429 et seq. Direct election of senators, 100. Direct primaries, 103. Distribution of wealth, 330 et seq. Division of labor, 237 et seq. Division of powers of government, 76. Divorce, 525 et seq. Dynamic society, 2. E Education, 543 et seq. English parliament, 78, 7g. Enterpriser, 248, 249. Environment: American, 194 et seq. physical, 13 et seq social, 24 et seq. Epileptics, 509, 510. Esch-Cummins Act, 281. Excise tax, 323. Executive, 76 et seq. Expansion of nation, 95 et seq., 104 et seq. Exploitation, 106. Exports, 298 et seq. Express companies, 283. Factors in production, 224. Factory system, 231, 232. Family, 518 et seq. Family budgets, 421 et seq. Fatigue, 364. Federal Reserve System, 312 et seq. Federal Trade Commission, 268, 269. Feeble-minded, 310 et seq. Folkways, 25 et seq. Forest conservation, 211 et seq. Franchises, 136 et seq. French settlers, 63, 64. Frontier, 96. Functions of government, 73, 74, 82 et seq. Gas and electric service, 135. General property tax, 326, 327. German immigrants, 159. Government: city, 124 et seq. general functions, 73. national, 82 et seq., 87 et seq. Group: life, 34 et seq. mind, 24 et seq. standards, 562 et seq. Guarantees of constitution, 71. Guilds, 229, 230. Guild socialism, 351. H Health, 1 2 1 et seq. Heredity, 9, 473, 512, 574. Housing conditions, 118 et seq. Immigration: Asiatic, 172. causes, 158. distribution, 167, 168. early groups, 159, 160. effects, 168 et seq. later groups, 160 et seq. restrictions, 174 et seq. Imperialism, 104 et seq. Index 599 Imports, 298 et seq. Income: earned and unearned, 338, 339. national, 330 et seq. tax, 324. Independence, 66. Indian, 191, 192. Industrial: accidents, 401 et seq. arbitration, 377. conflict, 375 et seq. education, 549 et seq. management, 246, 247. organization, 561 et seq. revolution, 223 et seq. society, 224 et seq. Workers of the World, 361 et seq. Inequality, 347, 348. Inflation, 307, 308. Inheritance tax, 327, 328. Initiative, 102. Insurance, social, 410 et seq. Injunction, 374. Insane, 507 et seq. Institutions, 44, 52 et seq. Insular possessions, 105. Interest, 333. International trade, 286 et seq. Interstate Commerce Act, 277, 278. Interstate Commerce Commission, 278- Inventions, 40 et seq., 225. Irish immigration, 159. Isolation, 16. Italian immigration, 162. Judiciary, 77. Jury trial, 482 et seq. Juvenile courts, 496. K Knights of Labor, 360. Laissez-faire, 84. Labor organizations, 357 et seq. Large scale production, 243 et seq. Latin America, 65. Law, 54, 466- Law making, 91 et seq. Local government, 73. Lockouts, 373. M Machinery, inventions, 230 et seq. Maladjustment, 4. Malthusian theory, 144. Mandatories, 106. Manorial system, 229. Manufacturing: early American, 233. changes in, 230 et seq~ Marriage, 521 et seq. Medieval cities, in. Mental defectives, 507 et seq. Middle colonies, 62 et seq. Military service, 86. Minerals: conservation, 214 et seq. wealth, 199 et seq. Minimum standards, 423 et seq. Money, 304 et seq. Monopoly, 261 et seq. Monroe Doctrine, 105, 106. Morality, 560 et seq. Municipal: functions, 132 et seq. government, 1 29 et seq. N National: banks, 311 et seq. expansion, 95 et seq. expenditures, 3 2 1 et seq. government, 82 et seq. income, 330 et seq. problems, 74. state, 52, 46 et seq., 64 et seq. Natural: resources, 194 et seq. selection, 36. Neanderthal man, 38. Negro, 179 etseq. New England colonies, 61 et seq. O Occupational risks, 406 et seq. Open shop, 368. Organized charity, 457 et seq. Output, 366. Overcapitalization, 256. P Pace setting, 366. Parliamentary government, 78, 79, 91 et seq. 6oo Index Parole, 494. Partnership, 249, 250. Party: caucus, 91. platforms, 89. Pauperism, 432. Penology, 479 et seq. Physical environment: effects, 13 et seq. of America, 194 et seq. Police power of state, 83. Political parties, 88 et seq. Population: distribution, 148 et seq. law of, 144. modern increase, 142 et seq. vital statistics, 150 et seq. Poverty, 429 et seq. President, 76 et seq. Prices, 306, 307. Primaries, 103. Primitive man, 38. Prisons, 488 et seq. Profits, 335. Profit sharing, 379 et seq. Progress, 7, 570 et seq. Promoter, 251 el seq. Property rights, 54. Property tax, 326, 327. Public: education, 543 et seq. health, 121 et seq. opinion, 87. ownership, 137 et seq. utilities, 133 et seq., 273. Puritan element, 61. R Race: origins, 180. problems, 179 et seq. Railroads: accidents, 408. growth, 274 et seq. labor board, 281. rates, 282. regulation, 277 et seq. Rainfall, 20 et seq. Real wages, 420. Recall of judicial decisions, 103. Reclamation, 215 et seq. Referendum, 102. ■ Regulation, governmental, 84. Relief, 454 et seq. Rent, 333, 334- Representative government, 91 et seq. Rochdale Cooperative plan, 381. Rural conditions, 124 et seq. Russian Jewish immigration, 164. S Sabotage, 362. Scandinavian immigration, 160. Schools, 543 et seq. Scientific management, 245, 246, 405 et seq. Scotch-Irish immigration, 63. Secret ballot, 101. Securities, 253 et seq. Senators, direct election, 100. Separation of powers, 76. Sherman Law, 268, 279. Shop committees, 378. Short ballot, 101. Sickness, 41 1 et seq. Single tax, 342 et seq. Slav immigration, 163. Slavery, 54, 181 et seq. Social: control, 31, 84, S5. environment, 24 et seq. evolution, 35 et seq. ideal, 557. institutions, 44. insurance, 410 et seq. morality, 560 et seq. progress, 570 et seq. standards, 467, 470. Socialism-, 345 et seq. Southern colonies, 58 et seq. Spanish war possessions, 105. Speaker of House of Representatives, 91.. Speculation, 257. Spoils system, 101. Standards of living, 417 et seq.. State: American, 58 et seq. problems, 75. social institution, 46 et seq. Static society, 2. Stocks, 253, 254. Stock exchange, 256, 257^ Stock watering, 256. Strikes, 373. Index 601 Struggle for existence, 35. Suffrage, 09. Suggestion, 29. Supreme Court decisions, it Sweat shop, 395 et seq. Syndicalism, 362. Tariff, 290 et seq. Taxation: function of state, 86. federal, 321 et seq. increase, 31S. kinds, 318, 319. local, 326. principles, 319, 320. state, 325. Telegraph and telephone, 283. Temperature, 19 et seq. Tenements, 118. Trade unions, 358 et seq. Tradition, 24 et seq. Transportation: municipal, 136. national, 272 et seq., 201 et s Tribe, 51. Trusts, 264 et seq. U Unemployment, 402 et seq. Union: of colonies, 67. of labor, 357 et seq. Urban growth, 109 et seq. Utopia, 2. V Value in exchange, 240. Vital statistics, 150 et seq. Vocational education, 549 et seq. W Wages, 335 et seq., 363, 364, 396, 420. Walking delegates, 367. Wants, 419. War, 52 et seq. Water resources, 201 et seq. Water transportation, 283 et seq. Water supply of cities, 134. Weather influences, 21. Welfare work, 397, 398. Westward movement, 95 et seq. Woman suffrage, 99. Woman's movement, 536. Women in industry, 392 et seq. Working conditions, 364 et seq., 36S. Workmen's compensation, 410.