THE
PRESENT ASPECT
OF THE
|- Labor Problem,
BY
* ■
R. H eber Newton.
Four Lectures given in All Souls Church,
New York, May, 1886.
New York :
The Day Star, 3115 Fourth Ave.
1886.
ve>i mm
CONTENTS.
I. Labor’s View of the Situation.
XX. Capital’s View , of the Situation.
III. Society’s View of the Situation.
IV. The Wav Out.
0 * h!
LABOR’S VIEW OF THE SITUATION.
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should be swept into such a current. Enough and more than enough
has occurred to provoke your passions and to rouse the fighting
nature which is in us all — the heritage of far-back ages when life
was ail a savage strife. I pity from my heart any man who is to-
day a large employer of labor, and would not for his wealth ex-
change my modest income, if I had to be booted with his cares and
anxieties. None the less, without taking on any airs of mental or
moral superiority, and speaking from a position where if my inter-
ests are biased at all they would naturally swing me upon your
side of the case — I call on you to stop and think calmly before you
act strongly.
I. You say : “ Why do our men treat us with such suspicion ?
We mean to do squarely by them. We are honestly desirous of
bettering their condition. When we plan any improvement for
them we find our plans regarded with distrust and our overtures
sullenly rejected. They make us feel at every turn that they
have no confidence in our veracity or honor, or in our desire to
make a human relationship out of the bond between us.” This
is often doubtless true, and being true it is hard indeed. I know
how some of you have planned large things for your employees
and how disappointing has been your experience at their hands.
But remember that you are not the only employers of labor in the
land. There are, alas ! too many in your position who have not
your conscience. Shylock is in business still. And as one Shylock
stamped a race with opprobium, so one Shylock to-day may brand
a whole class with the mark which leads men to turn from it in
distrust and fear. The principle of solidarity holds over all employ-
ers of labor, and you sutler because of others whose hearts are
made out of Hint and whose consciences were forgotten in their
make up.
Remember, still further, that the old personal relationship of
5
employer and employee has been rapidly disappearing in our midst,
through the development of corporate industry. Joint stock com-
panies are dispossessing private enterprises in all directions. The
shareholders in a corporation have nothing to do with its manage-
ment. They know nothing of its hands, and come into no living
relationship with them. They may perhaps attend an annual
meeting and vote the right ticket, and then all their duties are
discharged, except that of drawing the quarterly dividend. The
management of the business falls upon a superintendent, who has
necessarily a very large liberty, and who, if he be so disposed can
become a great tyrant, without the stockholders knowing anything
about it. These superintendents are often smart, sharp, poshing
men, who by reason of these qualities, which make of them efficient
administrators in our times of fierce competition, are apt to become
hard masters of the men under them. The employees cannot get
the ears of the directors of the company — since they know that
any whisper of discontent may lose them their positions. Read
the testimony of intelligent workingmen before either of the great
Congressional committees, and you will find that this is a serious
factor in the situation. In one of the manufacturing towns of New
England there is a factory known as “ Hell’s Mills ” — a sufficiently
suggestive title. On one occasion, when the hands had struck
for an increase of ten per cent, of their wages, the superintendent
held in his pocket an order of the Board of Managers authorizing
him to grant the increase ; which he withheld until he forced the
men to terms, and thus saved to the company ten per cent, addi-
tional profits. This is the sort of man that is stirring up trouble
in many an unsuspected quarter, and envenoming the attitude of
labor toward capital. One “Hell’s Mills” is enough to turn
thousands of workingmen into demons.
II. You complain, my friend, of the loss of interest in their
work shown by your employees. This is doubtless, to a consider-
able extent, the fault of labor, about which I shall- have somewhat
to say next Sunday. But is it wholly labor’s fault that it is losing
interest in its tasks ?
Consider the change that has come over the conditions of labor
and the nature of many of its tasks. In the olden time, the weaver
sat in his little home with his family around him, blithely joining
in his labor. He could readily enough work long hours and n3t
grow discontented. Now he leaves his home early and spends the
daylight in a huge factory, amid its din and clangor, separated
from his family, or perhaps still worse, finding them with him in
one of these great barracks of industry — even the little children,
who should be at school, having some task which they needs must
do to eke out the support of the family.
Of old the artisan was master of his craft. He made some-
thing. He began a process which he finished. Now the factory
hand does a little bit of a job over and over again — a fractional
part of a process which he neither begins nor completes, and which
lends him no joy of the intelligent craftsman. He once was a
workman, fashioning with his own hands the watch into perfected
shape. Now the machine is the true workman, taking the raw
materials and turning out the finished watch. The brains are in
the machine. The man is but the living tender of the steely
monster who has robbed him of his brains and stolen from him
the joy that comes from their rightful exercise in making things.
Of old the workingman’s relationships were settled and contin-
uous. There was time for warm personal bonds to knit, and for
trust and loyalty to make an esprit du corps in the establishment.
In Nuremberg there was, three hundred years ago, a family of the
name of Sach, distinguished as manufacturers of Dutch metal. They
had then in their employ certain workmen of the name of Schmidt.
To-day the same business is conducted upon the same spot by the
descendants of the family of Sach, and among the employees are to
be found descendants of the family of Schmidt. This was the old
order, under which a beautiful loyalty was possible. Contrast with
it our nomadic industry. Factories passing from one hand to
another, their employees changing all the time — about as rapidly
as our domestic retinues, in which the new system of hiring by the
hour will soon come into play — and can you wonder that the old
loyalty has gone, and with it the old pfide in work well done, the
old interest in work at all ?
Go down in imagination into the lower grades of labor; realize
what the conditions are under which their tasks are wrought, how
utterly monotonous and unintelligent their occupations, and cease
to wonder at the loss of interest which you find.
III. You say again : “Our workingmen are well enough off, if they
only knew it.” Your skilled workmen doubtless are often well off
for wage workers. Skilled labor in this country is probably paid
higher than in any other country of the world. Your answer to its
complaints is fair enough, as far as it goes. But now about the
unskilled labor of the country ? If you examine the last United
States census, you must have noted the rather startling fact that
the average wage of the working people of the land is about three
hundred dollars per annum. How far does that go toward the
support of a family ? Every man who wants to be .informed as to
all the facts of the situation ought to read the late reports of two
of our great bureaus of labor — the report of the Massachusetts
Bureau and the report of the New York Bureau — upon the condi-
tion of working women in Boston and New York. There are cool
statements of facts therein which are painfully impressive. The
Chief of the Connecticut Labor Bureau, Professor Hadley, gives us
the reasons for concluding that our usual estimates of wages in this
country tend to err upon the optimistic side. The Pennsylvania
7
Bureau of Statistics shows that in some instances the nominal wages
are in excess of the actual wages by 60 per cent. An examination
of the reports of the Massachusetts Bureau of Labor shows a
difference of from 20 to 50 per cent in the estimate of wages given
by employers and by employees.
Whatever the facts may be, we must remember that wages are
determined, not by their nominal amount, but by their relative value
— their purchasing power. Despite of Mr. Evarts’ dictum in the
Consular Keports on the state of labor in Europe, every one knows
that the prices of many necessities are much higher here than in
Europe, so that workingmen do not find themselves nearly so
well off in coming here as they had expected. And then, further,
you must remember that the social wants of our workingmen are
greater than those of labor in other lands. Here is where the
'shoe pinches.
IY. But you say : “ Our workingmen are certainly better off
now than formerly.” If you refer to a short period of time I find
authorities again differing widely. Mr. Atkinson says that in
Massachusetts, within twenty- five years, the wages of cotton mill
operatives have increased 37 per cent., those of average mechanics
21 per cent, and those of skilled mechanics 33 per cent. But on
the other hand, the United States census— which Professor Hadley
thinks our most reliable authority — gives a drop of 25 per cent,
in wages during the decade of 1870-80. The testimony of working-
men in different industries as given by the New Jersey Labor Bureau,
indicates a downward tendency in wages. Let me give you a few
samples of these reports. Locksmith, Newark : “ In former years I
accumulated considerable, but now I cannot ‘make a cent above
expenses.” Weaver, Gloucester : “We have had a reduction of 10
per cent, and another of 15 per cent, in a year.” Jeweler, Canada :
“ Could get along before the war, making from $15 to $20 weekly.
Now I get but $6 or $7.” Silk-worker, Paterson : “ Wages have
been reduced 50 percent, in three years.”
Do you then mean, my friends, that labor is better off* now
than of old ? Certainly it ought so to be, with the astonishing
advance which our civilization has made. Unquestionably so it is,
in many respects* The poorest workingman to-day enjoys hosts of
advantages from civilization which the richest could not have
had a few centuries ago. The direct benefits of civilization for him
are enormous. He is better housed on the whole, and certainly
is better fed ; his length of life is increased ; he is not nearly so
liable to the dreadful diseases which formerly preyed upon him ; his
earnings are ordinarily secured for him ; he lives amid the manifold
privileges which are now the common rights of all ; and he has an
education such as only a few scholars then enjoyed. The direct
benefits of civilization — the increase of his wages, the lessening
of his work and the bettering of the conditions of his work — are by
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no means so clear. You have probably read the “ Progress of the
Working Classes in the Last Half Century,” by the President of
the British Statistical Society. If we can rely upon its figures, the
workingman has no case at all on this point. But, unfortunately,
figures are notoriously unreliable, and one has only to prod a few
of these roseate tables with some sharp questions to discover how
inconclusive they really are. In the Chair of Political Economy at
Oxford, certainly a sufficiently conservative institution, there is to-
day one of the leading authorities in his department. Prof. Thorold
Bogers inclines to the opinion that in real wages the workingman
of the fifteenth century was better off than the workingman of to-
day. The present movement for a reduction of a day’s work to
eight hours, according to this high authority, is simply an endeavor
to get back to what was once the normal day’s work.
“ This concerns England,” you say. True, but in the increasing
interrelationship which is taking place among all lands, the state of
labor in one land affects directly the state of labor in another.
American labor is inevitably tending, by natural causes, to the level
of European labor, except in so far as other factors are working to
counteract this tendency.
Hitherto we have been saved from the conditions which have
so dreadfully depressed labor in the old world. Those conditions,
however, are rapidly reproducing themselves here. We have reached
the limit of available free land, We are beginning to feel a sense of
over population. Our labor market is being over-stocked. The
whole world is becoming one open market in which labor anywhere
must compete with labor everywhere. We have been distinctly
warned through our Consular Reports that labor in this country
must expect to accept the conditions of the old world. And in the
old world, as we have seen, there is good reason to suspect that
the condition of labor is in some respects no better off than some
centuries ago. We have, however, as yet ho sufficient data from
which to generalize assuredly upon this question.
This much seems clear to me, that the tide has turned — that
the low water mark of labor was reached at the beginning of this
century, that a counter-current has been gathering headway, making
against the unfavorable tendencies of our system to which I have
referred, and that skilled labor is steadily rising.
The general question is not so much as to whether labor is
better off than of old, but as to whether it shares proportionately in
the enormous advance of our century. It is hard for us to realize
what a stupendous stride forward the western world has taken in
our century. Look at the development of machinery! Since
1870, in the United States machinery has doubled the productive
power of our people. This represents an increase of 22,000,000
man power. On every hand, the processes which were formerly
carried on by hand are now being performed by mechanism. If
9
one could have looked ahead at the beginning of our century and con-
templated this enormous transformation, how natural would have
been the sanguine expectation that the condition of labor would
be lightened by this change beyond anything known in history*
Has it been so ? Undoubtedly, labor has entered into the benefit
of machinery, by the cheapening of prices and by being relieved
from many of its more arduous tasks ; but, take it all in all, can
we dispute the judgment of so cool-headed an authority as John
Stuart Mill? “ Hitherto it is questionable,” he wrote in his great
work on Political Economy, “if all the mechanical inventions yet
made have lightened the day’s toil of any human, being. They have
enabled the same population to live the same life of drudgery and
imprisonment and an increased number of manufacturers and others
to make fortunes.” Professor Huxley says that the 7,500,000
workers in England can produce as much in six months as would
have required one hundred years ago the entire working force of
the world for one year. Does anybody imagine that they have en-
tered into their proportionate share of this tremendous gain of
productive power f
The increase of wealth in our century has been something
stupendous. In Europe and the United States, wealth has in-
creased since 1850 three times faster than the population. Accord-
ing to Mulhall, since 1830 Great Britain has almost trebled her
wealth, France has quadrupled hers, and the United States has
multiplied its wealth sixfold. At present we are growing nearly
$4,000,000 richer between each sunrisl and sunset. Does any one
again imagine that labor, as a whole, has shared proportionately
in this astonishing increase of wealth ? If it were so how could
there be the present discontent f If we had had a reasonable amount
of scientific statistical study, it ought to be a simple thing to
find out what is the relative proportion of profits and wages ;
but if you try this sum in arithmetic you must have clearer brains
than mine if you do not get muddled. From your point of view it
looks very clear doubtless. Mr. Giffin and other strong statisticians
claim that an increasing part of the profits of industry are going
to labor. Mr. Atkinson says that 90 per cent, of the wealth pro-
duced in manufactures goes to labor in wages, and only 10 per
cent, to capital as profits. The Connecticut Labor Bureau gives
only 5 per cent, of profits to capital. But on the other hand,
different manipulations of these figures are possible. The author
of “ Man’s Birthright, or the Higher Law of Property,” by no means
a socialistically inclined writer, claims that capital makes $1.08
on every dollar paid out in wages ; averaging 36 per cent, on its
investment. Mr. Carroll D. Wright, the head of our National
Bureau of Labor, and for years the head of the Massachusetts
Bureau of Labor, when on the stand before the Congressional Com-
mittee on Education and Labor, gave it as his conclusion that in
10
certain industries the employer gets $98 profit on each hand,
who receives an average wage of $364. If he be right, then there
is clearly room in such industries, when conducted on a large scale,
for a considerable increase of labor’s share without hurting capital.
Our census studies are so manifestly imperfect that it is utterly
rash to make any sweeping generalizations on the data now before
the country. But, if you are candid, you must admit, my friends,
that labor clearly has a case worthy of being brought into court,
a case which must be met by calm reasoning and by clear figures.
If the employer’s books could be opened to labor, there ought
soon to be a better understanding. The late Professor Fawcett,
who was thoroughly conservative, wrote as follows : “ If any one,
a quarter of a century since, could have foreseen all that was about
to take place ; if he could have known . that trade was soon to be
trebled ; that railways would be taken to almost every small town
in the kingdom ; would it not have appeared absolutely incredible
that all these favorable agencies should have produced so little effect
that it may now be fairly disputed ivhether the poverty of the
poor has been perceptibly diminished ? There has, no doaibt, been
an unprecedented accumulation of wealth, but this wealth has
been unhappily so distributed that the rich have become much
richer, ichilst the poor have remained as poor as they ivere before .”
Even the optimistic Mr. Giffin is forced to confess : “ No one can
contemplate the condition of the masses of the people without
desiring something like a revolution for the better.” One has but
to study the development Qf New York to realize the truth of
the matter. Millionaires have multiplied in our midst, in a century,
from a handful to several hundred. To be a plain millionaire now
is not at all to be a wealthy man, as New York counts wealth. On
the other hand, look at the squalor of poverty in the midst of
which the largest portion of our people live. Here labor sees the
situation in the strongest lights and shadows.
The revolution in industry and trade that has been wrought
by the inventions of our century has played into the hands of the
powers already commanding the situation — brains and wealth. It
is natural that it should have been so. It argues no diabolical sel-
fishness on the part of either brains or wealth that so it has been,
but simply the average selfishness natural to us all on the part
of those who had a chance and then used it. When the tide turns
it turns for all the craft in the river, but it makes an enormous
relative difference where your boat may be at the turn of the
tide. If you lie by the shore where the tide makes first, and the
favoring breeze strikes you there while it is calm yet over on
the ebb shore, you will gain an enormous lead upon your fellows.
Y. But you say : “ Whatever the condition of labor it is its own
fault.” To a certain extent, undoubtedly, it is so, as I shall seek
to point out next Sunday, but this by no means exhausts the case.
li
What. I have already said points to the fact that there are other and
far larger factors at work in the problem than mere laziness, and
ignorance, and waste. Our system is working against labor, in
some very serious respects. The growth of population is handicap-
ping labor. Were it ever so energetic tad intelligent and thrifty,
it would have everywhere a harder struggle, because everywhere
the labor market is feeling the pressure of an over- supply of hands
for the work which there is capital enough to undertake. Machin-
ery is dispossessing labor from one field after another at an alarm-
ing rate. The population of England and the United States
together equals some 80,000,000 to 90,000,000, but measured by the
productive power of machinery these two countries alone have
to-day a population of 1,000,000,000. This represents the real
extent of the crowd in the labor market. Machinery is pushing men
increasingly aside and substituting the labor of women and children.
Women work on the average for one-half the wages of men, and
children for one-third those wages. How portentous then is the
fact that, whereas our increase of labor at large between 1870
and 1880 was 52 per cent., the increase of child labor in the same
period was 98 per cent “ A man’s foes shall be those of his own
household.” This is coming to pass literally, as men’s wives and
children are called into the places which they themselves have
hitherto filled. There is thus massing in every labor market in the
world a constantly increasing body of unemployed or partially
employed men, ready to bid down wages in every department. For
every place vacated, there are a dozen, if not a hundred, ready to
step in. This is the growing danger which labor feels with a
shudder.
Our industrial system runs in fits and starts. A spell of
feverish activity produces a reaction, in which mills close and
factories shut down, and labor drops its work, of necessity, and
enforced idleness consumes the fruit of months of toil. This was
not so of old. It is a peculiarity of our modern system. It is
one of the results of our enormous development of productive
power unsystematized and accompanied by an unequal distribution
of its rewards. There is no real over-production. The mere idea
is an absurdity. Over-production of wheat, while tens of thousands
of men stand hungry, unable to buy flour ? Over-production of
clothes, while tens of thousands go half clad, shivering in the
cold and hiding their shabbiness from the, eyes of their fellow
men ? If you have enough necessities, are your higher wants
supplied? Relative over-production, of course, there is wherever
there is a glut, but that really means lack of power to consume —
that is, the power to buy things that are needed. Were there any
equable distribution of the wealth that exists to-day, from myriads
of homes men and women would go forth at once and buy the
things that they need, for body or mind — bread or books, clothes
12
or pictures, and the biggest boom would be started that the coun-
try has ever known. Over-production in wealth, when the total
annual wealth of our country if equally divided, would only
leave to each man, woman and child 50 cents a day ! The greatest
curse of our industrial system to-day is this periodicity of stagna-
tion, in which everything comes to a standstill ; in which, while
rich men live on their interest, poor men eat up their little
principal of savings, and then grow fierce with the madness of
hunger.
I am astonished at nothing in our business-life so much as the
absence of an earnest, determined endeavor on the part of our men
of brains to find the causes of these chronic crises and hard
times, and then set upon the track of some remedy therefore.
Were there any serious endeavor to systematize production, now
carried on in the helter-skelter scramble of individual greed, things
would soon better with us in this respect. Here is a magnificent
work for our industrial and trade associations.
It is the uncertainty gendered by these recurring hard times
which indisposes poor men to habits of thrift and stays the de-
velopment of labor. Of old the worker felt reasonably sure of his
future. Now the average worker knows not what a day may bring
forth. The wolf is ever growling behind bis door. Mencius, the
great Chinese sage, three hundred years before Christ, taught that
uncertainty as to the means of existence is one of the most im-
portant factors in the demoralization of a people. There is a lesson
for us in this sagacity of “ the heathen Chinee.”
And then, not to pursue the matter further in detail, the
tendency to concentration of population in our towns and cities,
our imperfect and corrupt government, Municipal, State and Na-
tional, our crude and well-nigh barbaric methods of taxation, our
special legislation, partial to wealth, our grotesquely inadequate
system of education for the people, which provides in the common
schools for well-nigh everything but the most common need of
the common people — industrial training — these and many other
factors of our social condition enter into the problem, combining to
put down labor on the minus side.
Above all and back of all, we come up everywhere to the prob-
lem of rent. As Prof. Thorold Rogers shows, this is the one point
in which most signally labor stands at an increasing disadvantage
in civilization. In every land there is a steady tendency in the
direction of increasing rent. This prime necessity is eating more
and more into the incomes of the poor and of the middle classes
of people. Listen to the murmurs of discontent* as they rise in
every country, and, under all the changiiig conditions of life, you
will hear this one growl against the increasing exactions of land.
Without a footing in the soil the workman cannot really be inde-
pendent, since he must sell his one ware — labor — at any price, in
13
\
order to live. He must be found in work. Freedom of contract
under such conditions is a moc 1 ery.
Here, then, is a complication of conditions working against
labor which makes childish the optimistic talk that one hears on
every hand. When labor has taught itself to be energetic, intelli-
ligent and thrifty, it will then simply have prepared itself to grapple
with the forces in our industrial system which, while working for
it as a part of civilization at large, are yet working against it sorely
in special ways. The problem is too large for any man to solve
to-day. All the more, my friends, on you, who represent the brains
and the wealth of the country, lies the urgent duty of meeting
labor calmly and reasonably, for a comparison of views and for
a study together of the problem which in the long run is your prob-
lem as well as its problem.
VI. But you say again : “ Granting all this, it cannot be helped.
Natural laws are working these conditions, and it is vain to seek to
oppose them.” It is easy, my friends, for one who is well off to
talk thus. “ Put yourself in his place ” — the place of the man
who is standing sullenly idle in the market without work, who
has used up the hard-earned savings of months, whose wife and
babies are at home hungry. Would you thus calmly sit down
and say, “ it can’t be helped ? ” If I know you, with your clear grit,
you would be more apt to clinch your fist and take a great oath
that it should be helped somehow or other. Now these men
are of like passions with yourselves, and are coming to much the
same conclusion ; and this is the meaning of the sullen, bitter, dog-
ged determination that one finds on every hand, which is simply
incipient anarchism. Such a state of mind is the powder, which
only needs a match to set it off. If I stood in such a position and
believed that it could not be helped, I should quickly lose all faith
in a living God, and when that faith fell from me it would not
take much to madden me and make me ready for the worst. That
is the process of development of demons which our comfortable,
easy-going political economy is forcing forward. Dangerous classes !
I do not only find them in the slums, but in the chairs of political
economy and the seats of enormous wealth, where brains and
wealth unite in the chorus : “ It can’t be helped ! ” Woe for us in
our civilization if so it be !
But, my friends, it is a lie of the devil. If there is one wrong
on the earth that cannot, sooner or later, be righted, when men
shall but study and work together, then this is no world of God.
It can be helped ! It needs now but the determined resolve that it
shall be helped, to open the way out of the clouds into light.
Labor is beginning to study the problem for itself, with wits sharp-
ened by want ; and, with insight cleared from all sophisms of vested
interests, it sees that these things can be helped, that where there’s
a will there’s a way, here as elsewhere.
14
It shall be helped — that is the meaning of the labor organizations
which are springing- up to day on every hand, developing such tre-
mendous power and provoking such strong opposition from the
employers of labor. I do not wonder at this opposition, after the
unreason and folly that has been displayed of late. If these
organizations are to persist in some of their present methods the
strain will be unbearable for employers of labor. I have no defense
to put in on behalf of these methods, which I reprobate as heartily
as you do. But. I pray you not to let such excesses drive you into
any equally unreasonable attittude of opposition. I appeal to your
sense of generosity, your justice, and your enlightened self-interest
in the matter.
Remember, my friends, what you employers of labor owe to
just such organizations in past times. Refresh your memories of
history and you will recall how, in the Middle Ages, manufacturers
and tradesmen and merchants were a semi-servile . class, at the
mercy of the rapacious and lawless Barons of the Crags — those
social vultures who from their eyries on the hills swooped down
upon the farmers’ fields, levied tolls upon the passing traders, and
ground the craftsmen of the neighboring villages into the dust.
Freedom and wealth and social position for the manufacturer
and trader and merchant were won by the stout burghers of the
towns banding together in unions which gave strength. It was
those Craft and Trade Guilds of the olden time, whose relics
remain in the great Companies of London, which formed the first
industrial organizations in our western world. Labor is simply
patterning after the good example which your ancestors set. Do
not meanly deny to it the use of the same all-powerful weapon of
association to which you owe your liberties.
Labor can no more win its economic independence to-day
without association, than employers of labor could have won then-
liberty in past times without union. You know, as well as the
workingman knows, that to stand alone is to be at the mercy of
unscrupulous and tyrannous employers, a victim of the hostile
circumstances which are closing round him and threatening a new
serfdom. The first right of self-preservation demands his freedom
of association. Be just enough to recognize this inherent right,
despite of the abuses to which it may lead.
All the real advances which labor has won in our century —
those advances to which you point as the evidence that his lot is
bettering — have been won chiefly by the power which he has de-
veloped through association.
Justin McCarthy, in his “ History of Our Own Times,” when
speaking of the famous Chartist movement, writes : “ There had
been a parliament of aristocrats and landlords, and it had for
generations troubled itself little about the class from whom Chart-
ism was recruited. The sceptre of legislative power had passed
15
into tlie hands of a parliament, made up in great measure of the
wealthy middle ranks, and it had thus far shown no inclination to
distress itself overmuch about them. Almost every single measure
parliament has passed to do any good for the wage-receiving
classes and the poor generally has been passed since the time
when the Chartists began to be in power. Our Corn Laws’ repeal,
our factory ' acts, our sanitary legislation, our measures referring
to the homes of the poor — all these have been the work of later
times than those which engendered the Chartist movement.” All
who have carefully studied the history of labor organizations in Eng-
land confirm this judgment. If wages have risen, it has been
chiefly because labor has developed a power to enforce its demands
for a larger share of profits. It has been the same story with
us here. I spoke to you earlier in the winter of a notable
scheme of profit-sharing which had been introduced in a New Eng-
land company, but I did not know at the time that this wise measure
was the result of a long and trying strife which that company
had been waging with Labor Unions.
Labor organizations lmve learned wisdom, through experience,
in the past. They began in England with as abominable methods
as certain of these now brought into use here — in some of whiph,
however, let me remind you, they were simply imitating the bad
example set by employers of labor, 66 rattening,” for exampie, having
been first introduced by the bosses — but they have been gradually
correcting their mistakes, gaining sobnety and good judgment,
and turning their organizations into institutions for the education
of their members, for their mutual assurance and for political in-
fluence upon legislation. Mr. George Howells shows that a number
of societies, which he had specially studied, had spent in thirty
years upward of $19,000,000 through their various relief f unds, and
$1,369,455 only on strikes. Mr. Harrison speaks of seven societies
spending in one year (1879) upward of $4,000,000 upon their mem-
bers out of work. He shows that seven of the great societies
spent in 1882 less than two per cent, of their income on strikes;
and states that ninety-nine per cent, of union funds in England
u have been expended in the beneficent work of supporting work-
men* in bad times, in laying by a store for bad times, and saving
the country from a crisis of destitution and strife.”
We may reasonably expect, therefore, that labor organizations
will educate themselves here, as they have done in England, in the
practical methods of self-help. This process is going on before
our eyes. The trades-unions of skilled labor are even now conserv-
ative institutions. They represent intelligence in intelligent action.
You have all read lately the calm, wise words of Mr. Arthur, the
chief of the Brotherhood of Locomotive Engineers. Power is
safely lodged in such hands. The unions of unskilled labor
present, doubtless, the real danger before us. These unions are,
10
however, also capable of becoming great educational instrumental-
ities, and education will bring them wisdom They are fortunately
being drawn into great federations, wherein the unions of skilled
labor come naturally to the top and take the reins of power.
Unskilled labor, comparatively ignorant and distrustful of its em-
ployers, will, in time, follow the guidance of skilled labor, and
this is always conservative.
, Such an association as the Knights of Labor, which, because of
its comprehensive character seems to threaten so much danger,
presents the very safeguard which society needs. So far from
standing aloof from the Knights of Labor, it seems to me that
all employers of labor ought frankly to recognize this order as an
invaluable ally. Its principles are, upon the whole, excellent.
The present head of the order may possibly lack the genius of a
Napoleon, but his judgment is, upon the whole, sound, and his
spirit temperate, and he may turn out a Wellington. ' What could
be more excellent advice to our workingmen than that which he
has given officially in the secret circular which lately came to light.
He is fighting within this National Order the battle of society with
the lawless elements which are threatening rebellion. That order
has already prevented hundreds of strikes, and for its own preser -
vation will tighten discipline, so as to stop local assemblies from
precipitating general contests. As it seems to me, employers
cannot better help themselves, and society through them, than by
lending encouragement to such leaders of the ranks of labor as are
honestly striving to turn the immense power of such an order into
channels where it will drive the wheels of reform, rather than let it
pour forth in floods of anarchy and revolt over the fields of industry.
It is true, as the New Jersey Bureau of Labor declares : “Increased
organization, whether of masters or of men, or of both, means de-
creased war.” Just as international war is becoming so frightfully
expensive, so unmanageably huge as to make for peace, so it will be
in the strife between capital and labor.
The best work of these labor organizations, however, I look
to see in other fields than this of war. They can become inval-
uable educational instrumentalities, immense mutual assurance
leagues, bureaus of information concerning the labor market,
omnipotent agents in our politics — correcting the present partial
legislation, guarding the just rights of labor under law, securing
a free field for the natural equation of the problem of wages — and
they can prove the nuclei for the great co-operative association out
of which, if ever, the dream of a Co-operative Commonwealth is to
realize itself.
Toward organizations discharging such functions there is no
need of hostility, and I pray you do not set your faces against them.
They have come to stay. Upon your attitude toward them largely
depends their attitude toward you and toward society. In simple
17
self-preservation you must resist vigorously the dictatorial and
tyrannous methods which they are at present so largely using.
To do this it may be needful for you to combine, as in so many
lines of industry you are doing, but let me urge upon you to
proceed slowly and cautiously. Act not from feeling but from
judgment and conscience.
As I watch the signs of the times, the greatest danger that I
see is in the precipitation of a strife over these organizations such
as our country has nev6r known as yet. Within the last fort-
night I have observed perhaps a dozen notices of the formation of
associations among employers of labor, looking to actions which
seem to me certain to make not for peace but for war. A day
or two ago I read that one hundred manufacturers of Chicago
had determined together to reopen their shops on Monday, offering
ten hours’ work for ten hours’ pay, and inviting back their men
who were out on strikes ; declaring thfit the failure to return
within a week would put the names of absentees upon the “ black-
list,” which would bar them from employment in other factories.
The Nation , from which I had this item, remarks : “ This system
of . self-defense is growing popular.” Popular doubtless, but un-
speakably dangerous.
It goes without saying that manufacturers have the right to
black-list incorrigible hands, men who have proven themselves
hopelessly vicious. That is the right of those whose interests
are common to protect one another against their common enemies.
But how easily may this right pass on into a frightful wrong !
How quickly may it become an instrument of tremendous tyranny!
How readily may it be used by superintendents and bosses, whom
you trust, to punish private quarrels ! How natural that mistakes
shall be made concerning the men who are thus proscribed ! How
inevitable that it shall mass in the labor market a growing host
who beai- the mark of Cain upon their foreheads, who find no
avenue of employment open to them, who face starvation, and
thus becoming desperate turn their hands against society, who
feeling themselves outlaws, act as outlaws! How certain that labor
at large will espouse the cause of men whom it will judge to be
martyrs, forgiving them their follies and crimes because they are
of themselves, backing them by the power of its organizations,
answering the black-list with the boycott. This is the danger in
the most guarded use of the black-list. What then the unspeak-
able danger in any such use of it as jthat which I hear spoken
of among you ? To assume to black-list men because of their con-
nection with labor unions — is to throw down the gage of war.
Ironclad contracts and similar devices to shut out men who maintain
their affiliations with labor organizations are simply so many
challenges of defiance to a power which needs to be conciliated
and wisely guided into paths of peace, rather than to be infu-
18
riated into open rebellion against society. Mr. Andrew Carnegie
declares : “ the right of the workingmen to combine and to form
trades-unions is no less sacred than the right of the manufacturer
to enter into associations and conferences with his fellows, and it
must be sooner or later conceded.”
You can fight labor organizations if you will, my friends, and
perhaps you can crush them — though I doubt that. But have you
seriously contemplated what such a war means ? If not, before
you go further, I pray you, in the name of humanity, to sit down
and study out the issues of the campaign upon which you are about
to enter so lightly.
VIII. I show unto you a more excellent way. There should
not be this strife between employer and employee. Do buyers and
sellers think of organizing themselves into hostile armies ? In the
economic aspect of the matter, employers and employees are simply
buyers and sellers of htiman labor. Is it not possible that this
bargaining shall be carried on as between human beings, calmly,
fairly, peacefully?
There is a higher aspect of the matter, however, than that
of economics. The present trouble grows out of the fact that a
necessary human relationship has been degraded into a mere bar-
gaining of the market. It is just because this human relationship
has had the soul left out of it that its economic body is developing
such a dangerous disease. The same Chinese sage whom I have
already quoted, wrote again : “ Let the people be employed in a
way to secure their happiness ; although wearied they will not
murmur.” Employers of labor have neglected the happiness and
the welfare of their people, and hence this murmuring. You
can easily take the wind out of the sails of agitators.
I like to use a Faber lead pencil, not only because it is the best
pencil that 1 can find, but because its excellence continually brings
up to my mind the admirable establishment which produces such
work; the great indust lial village of the Fabers in Bavaria, where
brains and wealth seek not only to use labor for higher profits, but
to lift labor to higher levels of life. The Messrs. Faber are distin-
guished for their philanthropy and for their close attention to
the mural and physical welfare of their employees. At their own
expense* they have established schools and kindergartens, built
churches, founded libraries, archer clubs and other organizations
for the recreation and the improvement of their woikmen. All the
actual necessaries of lifp are purchased by the firm at wholesale,
and can be so bought by the men. A savings bank encourages
the habit of thrift, and a hospital provides for those who may
be disabled, and in old age a small pension secures them from
absolute, want Each family may own a home of its own, paying for
it in installments in the form of rent. It is needless to say that
strikes are unknown and that mutual trust and good-will prevail
19
Now, this establishment is simply the type of a host of similar
establishments which, thank God ! are springing up in every land,
under the large-brained and large-hearted management of men
whose names will go down to posterity as the truest philanthropists
of our age of philanthropy. Such honored names are b* coming
familiar in our own land v One of our own citizens testified before
the late Senate Committee on Education and Labor, as follows :
“We are employing in the neighborhood of four thousand people.
We endeavor in all our intercourse with our working people to
treat them as human beings, with kindness, and consequently
it is very seldom indeed that we ever have any labor disturbances.
* * * We frequently give them a holiday or an excursion at
the expense of the firm. * * * We provide them with medi-
cal attendance free of charge ; and the senior member of the firm
has lately given instructions to engage a suitable building for a
library and to supply it with a large number of volumes for the
benefit of the factory hands without any cost to them. He has
under contemplation the propriety of giving them the benefit of
free schools at night.”
There is a yet higher development of this relationship, in
which I find the secret of peace and prosperity. The vice of the
present wage system is that it puts the two parties to the bargain
on the opposite ends of a seesaw; whereon each side tries
to go up by making the other side go down. What is needed for
peace and prosperity is to induce some identification of interests,
instead of this antagonism of interests. We need not concern
ourselves about the ultimate form of the industrial order into which
the wage system is to develop, but we may well concern ourselves
about the next step forward, in making capital and labor partners
instead of enemies. That step forward is what is now known as
Industrial Partnership or Profit-sharing — the allowance to the
employees of some share in the profits of the establishment, over
and above their wages, and pro rata to their wages.
This is no dream of the theorist, but simply the common
sense principle of securing harmony of interests, and thus the
greater productiveness which comes from putting “ heart ” back
of the hands. It is already in operation in a considerable number
of establishments in our country — the most notable experiment
being in the gigantic Pillsbury Flour Mills of Minneapolis. What-
ever may be said of this experiment, this is certain — as Mr. Howland
Hazard writes of his venture in the Peacedale Mills : “ It pays as
a lightning rod.” The man of brains and wealth who will repro-
duce upon our shores the superb success of M. Godin in Guise ;
who will organize an industrial establishment in which his employ-
ees shall have the benefit of a model town, while they are being
trained under his own direction into the ability to manage the com-
pany after he passes away, as their own property bought out by
20
their gradual purchase of its shares — that man will be hailed by
the coming generations as the savior of society.
Men of brains and wealth, to whom God has given the highest
power on earth, the power of leadership, to you I appeal — to your
calm reason, to your conscience turned upward unto the face of
God. Make yourselves true Captains of Industry, and organize
not the war of destruction of whose glories the past has sung, but
the peace of production, whose glories the future will sing, while
angels bend low from the skies in the chorus : “ Peace on earth,
good-will among men.’'
21
CAPITAL’S VIEW OF THE SITUATION.
“ Hear the other side ” is a good old rule for an amicable
adjustment of differences. It is a rule which each party in the con-
test between capital and labor needs to apply to the debate in
hand to-day. In this case, as in every other case of which I know
anything, there are two sides to the question.
As I tried to give last Sunday labors answers to capitals com-
plaints, so let me try to-day to give capital’s answers to labor's
complaints.
I. Unskilled labor says bluntly to the capitalist : “lam poor.
I am wronged in being poor. Somebody has done me this wrong.’'
With you, my friends, in the ranks oi* labor, I believe you are
wronged in being thus poor. There is a fault somewhere. As
Tregarva, in Yeast, said, when watching the life of the peasantry
in an English village : “ Somebody deserves to be whopped for all
this.”
Perhaps there are several parties to share in this whopping.
Capital asks : “Are you quite sure that one of them is not the man
whom you face in the looking-glass ? V
In that you stand in the ranks of unskilled labor you confess
yourself to be comparatively uneducated. This may be chiefly
your misfortune. In so far as it is, you have the sincere pity of
all men who have had better opportunities. But is it in no sense
your own fault ? Have you used the advantages offered in our
country and educated yourselves for higher occupations ? If not,
blame yourselves first of all. There is always room at the top.
The really skilled workman has rarely any need to answer adver-
tisements. Even so-called skilled labor is often most unskillful.
He who has need to employ mechanics of any kind knows how
constantly he must keep his eye upon many of them, to prevent
them from making most stupid mistakes. For such men, despite
our pity over them, there can be but poor wages, in the present
state of things. High wages for poor work would put a premium
on ignorance. Nature wiil see that we don’t stand thus in the
way of man’s education. Should we try to do so, she will starve
society back into general poverty very quickly.
In that you are of our race, you may be unconsciously guilty
of that veritable original sin — laziness. I have stood in Central
Park watching laborers trundling their barrows, and learned
unsuspected lessons as to man’s capacity of approaching the
pace of a 8 nail. I have had some little opportuQity of employing
unskilled labor, in my wee bit of a garden, and have been pro-
foundly impressed with the disposition of the lads I have hired
to do just as little as possible in order to draw their wages.
Success is possible in no line to men who work with such a spirit.
They must always remain far down in the scale of labor, and be
paid according to their deserts.
22
In that you are like us all, you may be, without knowing it,
very improvident. Every housekeeper who is worthy of the name
knows the truth of this as touching poor women. Her girls will
waste materials in a fashion to nearly drive her crazy, and then
complain of her meanness when she tries to rebuke their wasteful-
ness. Every employer of unskilled labor, and for that matter
many an employer of skilled labor, knows how reckless the hands
are of those small economies, those minute carefulnesses which
count so heavily in the aggregate, in the mill and factory and work-
shop. There is not an employer of labor to-day who could not
well enough afford to increase the wages of his hands very consid-
erably, if together they chose to be as careful as they readily might
be of his materials. The * old adage is true : “ Willful waste
makes woeful want.”
You might save enough in your foods alone to amount to
more than the equivalent of the increase of wages which you
desire, if you were at pains, so to do. It sounds hard when you
find Mr. Edward Atkinson giving you tables of the lowest cost of
living. Such figuring may be used as an excuse on the part of
avaricious employers to crowd down your wages ; but, for you,
it is the part of common sense to learn how you can make your
money go as far as possible. Of course, a generous diet is neces-
sary for effective work, but the essential elements of nutrition can
be supplied in vastly more inexpensive forms and methods than are
common among us all. Think of grand old Carlyle writing some of
his greatest books upon a diet of oatmeal porridge, and do not
talk about its being necessary for you to have the finest cuts,
as a butcher of our city told me many of our workingmen insisted
upon having.
Some of your habits, my friends, are even more inexcusably
wasteful. The drink bill of our country is some $700,000,0Q0 per
annum, a very considerable part of which labor is paying to-day.
Men who strike for higher wages can find enough generally for
whiskey and tobacco. In reading the testimony of intelligent
workingmen, I have been impressed with the recurrence of the
opinion that cne of the first things to do to better the condition of
labor, as a whole, is to reform its drinking habits. Suppose, as Mr.
Powderly advises, you boycott drink.
Lest you should think that I am speaking from an unsym-
pathetic position, let me quote the opinion of an intelligent and
thrifty man, who has worked in a mill from boyhood : “ If the
wife of the factory worker would practice the same economy prac-
ticed by an average mechanic’s wife, she would be just as able to
make both ends meet without going to the mill. The native Amer-
ican has a pleasant sitting-room with carpet and pictures, and
piano or organ, and a cozy home-look everywhere, while many
a mill operative, with the same wages, lives in a tenement house
23
with bare walls.” That this is not the opinion of an individual,
let the following fact testify. A study of the comparative earnings
and savings of labor in Massachusetts and in England shows that,
while labor in Massachusetts earns forty per cent, more than labor
in England, it saves only four per cent. more. Make what allowance
you will for the imperfection of statistics, for our higher cost of
living, for our larger social wants, and there remains still a most
impressive lesson in this fact.
In simple justice, I must say these hard truths before passing
to other matters. They are preached so much to you workingmen
that I do not wonder you grow restive under such preachments.
They are used to cover up the back-lying facts of the situation
to which I referred last Sunday, to hide the large forces that are
working against you in our industrial society. I do not use them
in this spirit. I recognize that the conditions of our life to-day,
in many respects, induce these very faults in you ; so that I pity
while I blame. I recognize, also, that when you have educated
yourselves and become industrious and thrifty, you will then be
far from having solved the labor problem ; you will have then
simply qualified yourselves to grapple with that problem in its
harder form. But this I say, with the utmost kindliness, with the
profoundest sympathy, but with the frankness of truth — there is
no help that can come before self-help. There is no conceivable
condition of society that can give you what you need, and what
abstractly you ought to have, until you first make yourself fit to
receive higher pay by intelligence and industry, and fit to use
that higher pay by habits of thrift.
II. Unskilled labor puts this complaint concerning its pov-
erty in a still more direct form against the employer of labor.
It says: “ You are rich and I am poor. As I am working for
you, you have probably grown rich out of my labor. You have
made me poor.” In this form, the feeling does not articulate itself
into any definite proposition concerning the relation of profits and
wages, but it is simply a vague, blind suspicion of wealth.
Now and then you will hear it blurted forth in such a wild, mad
outcry of envy as Mary Parson’s speech in Chicago the other day.
With you, my friends, who stand in the ranks of unskilled
labor, I feel that there is a wrong in the fact of much of the wealth
that confronts you to-day. But, with the capitalist, I think that
the wrongful wealth is not his but the other fellow’s — the man who
is neither capitalist nor workingman, but the enemy of both.
There are by law allowed certain monopolies of the natural
resources of the earth, which create vast fortunes that will bear
no ethical examination. There are hosts of men, by courtesy called
business-men, who are engaged in no legitimate form of business,
who are simply preying upon the world of industry and trade,
injuring capitalists and workingmen alike. There are gamblers
24
down-town, and not a lew of them, whose names are well known
in our community, who are distinguishable from the u blackleg ”
simply in that they deal with stocks instead of dice, and frequent
the street and Exchange instead of hanging over the pool-table.
Thus some of our greatest fortunes are accumulated, but they are
the accumulations, not of the legitimate business-man, but of the
speculative thimble-rigger. There are those who neither build the
good ship of industry nor sail it, but wreck it. The railroad
wrecker has come to be a well recognized form in our society. He
has cultivated his business into a fine art and reduced it to a
science. He has given it high sounding names and clothed it in
garments of respectability. None the less, when analyzed, it is the
business of the wrecker. There are, in forms too manifold to
trace, the operations of our modern freebooters, who harry every
field of industry and trade and pile up their colossal wealth out of
the ruins of honest toil, whether of brains or brawn. Capital
and labor are equally suffering to-day from these vampires of the
business world. These are the men whose openly immoral wealth
is teaching labor to regard all wealth as criminal. These are the
men who are breeding thunder-storms in our midst, and preparing
cyclones which may sweep over our land at any time in devastation.
But, my laboring friends, do not make the mistake of confusing
such wealth with the wealth of legitimate business ; do not identify
the gambler and the wrecker and the bucanier with the capitalist.
Many employers of labor may also be monopolists of some natural
resource, or they may be engaged in side speculations, and thus
their wealth may be chiefly not that of the capitalist but that of the
monopolist and speculator. Remember, I pray you, that there is no
capitalist class in this country, no hard and fast lines of an employ-
ing caste. The capitalist of to-day was the workingman of yester-
day. Nine out of ten of our great employers of labor were
themselves employed by others but a few years ago. I was speak-
ing a few days since to a gentleman who employs four thousand
men, and he said to me : “ Have we not all pushed our way up from
the ranks of labor ? ” This is the glory of our country.
Now these men who have risen to be employers, rose by culti-
vating their minds, and impioving their opportunities to fit them-
selves for higher positions. They have climbed the ladder by hard
work. As I grow older I may perhaps grow harder, but I certainly
grow more convinced of the fact that the difference between men as
to outward success, is largely a difference of disposition aud ability
for hard work. Successful lawyers and doctors and clergymen, as
well as successful manufacturers, are the men who can slave at their
work, while their friends loaf and dawdle. The men who have risen
are the men who have from the beginning practiced abstinence, who
have cultivated simple economies, who have determined to save
enough to get ahead. One of our most successful bankers told me
that from the time when he began as a clerk it had been his rule al-
ways to keep within his income and to salt something down.
Political Economy is right in teaching that capital, originally, is the
fruit of abstinence, and that its legitimate profits are the rewards
which society pays to the men who deny themselves in the present
for the sake of the future.
Doubtless it is becoming ever harder for men to rise out of the
ranks of labor, as the stress of competition becomes fiercer, as the
plant of any industry becomes more costly, as the processes of
manufacturing become more subtle, and as the conditions of the
market become more involved ; but the way upward is yet open for
any man who has the clear grit to rise. Doubtless this very ca-
pacity, in which lies the secret of success, is one of the richest gifts
of nature — the boon of the few and not the common heritage of the
many. Those who have it must then look down from their superior
advantages with tender human sympathy for those who have come
into life dowered with a mortgage from the ignorance and dullness
and feebleness of earlier generations. On the other hand, labor
must recognize that the foundation of the wealth won by employers
of labor is laid by these honest qualities, which entitle them not to
our hatred but to our admiration and imitation — at least as touch-
ing these characteristics. Garfield said that his career opened on the
day wherein he read an essay of Emerson, of which he remembered
nothing but this one saying : “We are all of us as lazy as we dare
to be.” The hard look of life is largely the discipline of Mother
Nature to forbid our daring to be as lazy as we wish.
III. Skilled labor puts its complaint against capital more de-
finitely and personally. “ Labor,” it says, “ is the creator of all
wealth, therefore, it ought to get all wealth. Labor is wronged to
the extent of capital’s profits.” This is the pith of German Socialism,
in its more radical forms. You will find it clearly stated in Gron-
lund’s “ Modern Socialism.” If this be true, then the term which
Gronlund applies to the profits of capital is literally accurate — they
are “ fleecings.”
Now in what sense is it true that labor is the creator of all
wealth 1 In a general sense it is indisputable, but in this sense it
is axiomatic. The raw material of all wealth is found in the earth —
the land and water. None of the products of the earth, however,
constitute wealth, save as labor is applied to them. The pioneer
has to fell the trees that grow in the virgin forests, and catch the
fish that swarm in the waters, and hunt the game that roam through
its glades. From this point, the amount of labor necessary to pro-
duce wealth increases as man’s wants multiply and rise.
In our state of society all wealth is the result of three factors
— land, capital, and labor. One must have land to cultivate or on
which to plant his factory ; he must have capital to buy seed and
agricultural tools and to put up fences and barns, or to rear the fac-
26
tory and stock it with machinery ; and then he must have more labor
than his own pair of hands, to work, his farm or to run his factory.
One naan may own the land, while another may supply the capital,
and many others must contribute their labor. The profits of the
enterprise must then be divided, in some ratio between these three
partners. Land does not come into our consideration at present,
as the immediate disturbance is between the other two partners,
capital and labor.
What then does labor mean when it declares that it creates all
wealth ? It surely cannot mean that, as between the individual em-
ployer of labor and his several laborers, the whole wealth of any in-
dustry is created by the laborers. The most hobby- ridden theorists
must admit the fact that the employer of labor contributes a very
essential part to the production.
The building in which the hands gather, he has reared, and the
machinery which stocks the building, he has bought and set up.
He is entitled to his interest on this plant. There is risk involved
in this outlay of capital, and this must be secured by insurance.
When the plant is established, the business must be organized
and directed. This labor of superintendence is entitled to its wages.
This is genuine labor, though the labor of brains, and essential to
production. To make a success of any large enterprise to-day,
there must be a genius of command which is no more common in
industry than in war. There must be a knowledge of men and of
affairs, which fev of us possess. There must be the capacity to
sweep in a bird’s-eye vision a market which is becoming as wide as
the world ; to forecast tendencies, to form correct generalizations,
to decide with unerring judgment questions which are subtle and
complicated and which, for the most part, cannot be reasoned out
but must be divined instinctively. There must be immense re-
sources of push and ' enterprise, unfailing supplies of energy, in-
domitable perseverance and a host of allied qualities. There must
be added to all these qualities a minute and exact knowledge of the
processes involved in the industry in question. I know of one
great manufacturer who understands personally every process
carried on in his great establishment, and is able to step into any
department and with his own hands do what is there to be done.
The absence of any one of these qualities may make the differ-
ence between failure and success ; that is, between no profits at all
and large profits ; that is, still further, between no wages, or possi-
bly low wages, and high wages. All these factors go to the making
of any wealth in industry, quite as much, to say the least, as the toil
of the hands. All must be paid for. . Their pay is drawn in the
shape of profits. In taking this pay there is no wrong done but •
simply justice rendered ; no robbery committed but service paid.
The function of brains in industry is increasing all the time,
as our processes become more refined and subtle and complicated,
27
and as trade becomes larger and more complex. Science and Art
are increasingly entering into industry and in the truest sense mak-
ing the value of the products turned out from the factory. There
are hosts of industries to-day where the most important factor is
the chemist’s knowledge and skill. What makes one brewery turn
out beer that everybody wants while another brewery turns out beer
that nobody wants, is a secret of chemistry — a secret which the one
party has found' and the other party missed. In the one brewery
there is a thriving business, large profits and high wages ; while the
other barely covers expenses and is compelled to reduce wages, and
at last to close up. Cannot the workmen in the successful brewery
see that what puts work into their hands and wages into their
pockets is the product of brains more than of brawn ; that the wealth
is in the last analysis produced by thought rather than by muscle ?
I pass sometimes a great establishment near Broadw r ay, which has
acquired a national reputation for the beauty of its artistic de-
signs and the thorough workmanship of its wares, and I never do
so without thinking of the great-brained man who literally put his
life into that establishment, coining his fine thoughts into stuffs
which everybody wants and for which everybody is willing to pay
high prices. Cannot the workingmen in the great factory which
feeds that store understand well enough that, however cunning
the skill of their fingers, they never would have the wages that they
get but for the more cunning skill of the mind of the artist whose
genius built up that great establishment %
How pitiful then sounds the folly of such talk as one hears in
many a labor meeting to-day. One of the best known labor champ-
ions, in a little pamphlet which has had a wide circulation, I believe,
•speaks of the large profits which employers make — “ without doing
anything but superintend the work.” Thus the seaman, clinging to
the rigging in the midwinter’s gale, may look down upon the cap-
tain, standing calmly on the bridge, while the great steamer ploughs
her way through the fog banks, and say to himself : “ That man is
robbing me by pocketing ten times my pay without doing anything
but superintend the ship.” Thus the private, tramping across
heavy fields, may look up to the general, as he rides by the column,
with envious eye, and say to himself : “ He gets thousands a year
for doing nothing but superintend the army.” But then, seaman
and soldier, in talking so, would be very foolish, would they not ?
When you do any job, my working friend, that pays you well,
which does the most labor, your head or your hands ? Apply the
parable to the body social, and be sensible enough not be carried
away by such folly as Mr. Martin Irons contributed the other day
to the Congressional Committee. “ What do you think,” asked one
of the committee, “ about labor producing wealth ? ” To which
this worthy would-be dictator of American workingmen replied :
“Labor produces everything, and capital products nothing?
IV. Labor when sensible — and our American workingman on
the whole is as level-headed as any other member of the community
— cannot but admit that capital is entitled to its share in the
wealth produced by industry. It insists however that capital gets
too big a share. It says: “You employers of labor ought to be
paid, but you are too highly paid. We must cut down your pay.”
This is plainly a matter to be determined, first of all, by hard
facts. As I said last Sunday, we have not the data upon which we
can decide off-hand this question of the present relation of profits
and wages. We have plenty of figures, such as they are, but they
are unreliable. It is entirely too soon, therefore, to go on to raise
the other question, which is being so fiercely mooted in certain
quarters, as to the justice of capitals profits. We should first know
accurately what they are, before we try to determine what they ought
to be. I am quite prepared to admit with you, my working friend,
that capital probably does get, at many times, and in many lines,
an utterly disproportionate share of industry. But, on the other
hand, capital replies: “Do not judge all by a few ; do not judge
all years by some years. Some of us are are making large profits
and others of us are making nothing. In some years we all make
handsome profits and in other years we all lose heavily.”
These are cold, hard facts, which every workingman is capa-
ble of recognizing for himself. How many an employer to-day
has locked up in his costly plant the fruit of years of toil, getting
from it all barely enough to cover expenses, and utterly unable to
sell out as he would be so glad to do. One who is listening to me
as I speak, situated after this fashion, went to his hands, a year
or so ago, and offered to make over to them the mill, as it stood, if
they would form an association and guarantee him 6 per cent, on*
his investment. They declined his offer, and were probably wise
in doing so. Have you any idea, my friends, how many man-
ufacturers not only make nothing but lose everything ? One of our
great dailies stated recently that about 95 per cent, of those who
go into industry fail. In trade and commerce, I believe, about 97
per cent. fail. Now are you going to judge the 95 per cent, in in-
dustry and the 97 per cent, in trade and commerce by the 5 and
3 per cent, who succeed ? You would be far less sensible than I
take you to be if you do.
But, granting that capital’s profits are high, you must recog-
nize the fact, my friends, that we have all to pay high prices
for the best things. You can get a coat that will fit you like a
bag and will drop to pieces on your shoulders for next to nothing,
but if you want one to fit you gracefully and to last long you will
have to pay well for it. You artisans and mechanics can get help-
ers for a song — but you will probably kick them out of the way be-
fore the day is over. They will * hinder you more than they
will help you.
29
You can hire superintendents of a sort very cheaply. * There
are lots of men standing idle in this city who think that they have
brains enough to run the biggest industries, and that the world
has utterly failed to recognize their genius. Suppose a few hun-
dred of you club together and go into the capital market to-morrow
and employ one of these uncrowned kings of industry, that “ the
rod of empire might have swayed.” How far will he lead you
to financial success, in the terrific strife of competition, out of
which only the best brains and the strongest wills are wresting
victory ? You are altogether too sensible to trust yourselves to any
such sort of brains, however cheaply you can get them. If then
you want to hire the best brains for your superintendence you
will have to pay for them proportionately to their superiority. The
best brains must always have the highest prices. Their scarcity
and service fix their figures. To which part of your body does
nature send its fullest flow of blood? Which does it build up at
greatest cost to the system? That little mass of coiled, gray tissue
which you call your brain taxes the body infinitely more to produce
and maintain it than both hands with all their fingers.
There is a hard look in this statement. But then there is a
hard look in nature, too, my friends— not the hard look of an unfeel-
ing tyrant, but the hard look of a mother who loves us enough
not to pamper and coddle us but to whip us into effort and to diet
us into health. Apart from all their other and higher functions in
civilization, brains, as we have seen, form the chief factor in the
production of wealth. Just as the struggle for existence becomes
harder, so does the necessity of more brains and stronger brains
become greater. Nature puts her premium on the development
of brains by rewarding them higher. When a gardener wants to
force forward some Black Hamburg’s, he enriches the soil and
stimulates the growth of the vine, and by the craft of his art turns
the energies of the organism into the direction of grape-bearing.
Society does precisely so with the growth of brains.
I do not at all mean to say that capital may not take an ex-
cessive share of the profits of industry. This is a question to be
determined between the two partners in all industry, and it ought
to be determined calmly and peacefully, like all disputes between
sensible men, and would be so, doubtless, were the condition of
one of the parties not so often helpless if he retired from the
business. Society ought then to secure for you the conditions
in which you would find a fair field on which to contest this issue,
while it re-enforces the moral sense of the employer by the press-
ure of a public opinion demanding justice.
Y. . Labor puts in one final complaint against capital. “ Grant-
ing,” it says, “ all that capital has replied to my previous charges,
it remains indisputable that we are natural enemies, one of the
other. The rewards of our conjoint industry have to be divided
30
between us, and profits and wages must therefore stand in an in-
verse ratio to each other. Whatever my employer makes, I lose ;
whatever I make, my employer loses. Our interests are antag-
onistic. They cannot be reconciled by any soft, smooth talk.”
There is, of course, a certain truth in this comp aint, but it is
an exaggerated truth. That truth is simply the fact which is
common to many other relationships than that of capital and labor.
Every time yo u enter a shop to buy som thing, you and
the shopkeeper stand over the counter in very much the same
relation in which you and your employer stand. You two are
buying and* selling ; each one trying to make the best bargain for
himself; each one knowing perfectly well that whatever the other
man makes in the bargain is made out of him ; and yet you do
not leap at one another’s throat’s as mortal foes. You are a seller
of labor and your employer is a buyer . of labor. A perfectly
equitable bargain is of course to be desired ; but it is to be sought
in very much the same way that a bargain in the shop is sought.
There is just such an inverse ratio, between profits and wages as
there is between the shopkeeper and the customer. If these parties
manage to carry on their bargainings in a friendly way, why
should you strike an attitude of irreconcilable antagonism toward
the man who seeks to buy the labor that you offer for sale %
In every firm, the partners stand in the same relationship in
which you and your employer stand. Five lawyers in a firm must
needs divide in some proportion their joint profits ; but they do
not dream of counting themselves one another’s enemies because
what each one takes from the common income of the firm has to
be deducted from the sum divisible among the other four members.
They do not take one another by the throats as sworn foes, but
rather join hands to make the biggest possible amount for the
firm; content to divide up according to the relative services of each
one ; the senior member, whose name and experience and ability
float the firm, taking naturally the lion’s share, but securing for
each junior member an income which he could not of himself have
won.
The fact is that you and your employer are in as real a sense
partners as the members of a legal firm. You are working together
to make common profits, which then of course ought to be divided
between you in the ratio of your services to the common concern,
just as the profits of the legal firm are divided. It would be very
well for you if you could draw at once the profits of capital and
labor, as it would be very well for the young lawyer if he could
draw at once the profits of the senior member of the firm with
his own profits as the junior member, just taken into partnership ;
but if you must have a partner, you must be content to give him
his share, and be sensible enough to work together with him
heartily as an ally and not as an enemy. This is precisely the
position to-day.
31
Whatever may be the future of the firm of capital and labor —
and I for one certainly believe that the silent partner must be taken
into a larger share in the concern — as long as it is a firm, so long
that is as capital and labor are two parties and not one, so long
will it be the part of common sense to recognize that the firm’s
interests are common interests, that both parties are partners, and
that the more that they make together the more there will be to
divide up between them.
With all my heart I wish that you could dispense with the cap-
italist to-day and be your own employer. Society at large must
wish this, because it would be for the greatest good of the greatest
number. Dispense with him just as fast as you can. But while
you need him treat him squarely as a partner. Are you ready
now to dispense with him ? Have you money enough laid by to
break up the firm and set up for yourself ? Estimate the cost of the
^plant in your factory, and answer this question for yourself. Have
you collectively, in your labor organizations, sufficient savings to
drop out the capitalist from the firm ? I suspect you often have,
if you only knew it. A certain savings-bank in Lowell had large
deposits from the workingmen of the city. They lay there,
drawing their small interest. There came along a bright, enterpris-
ing man, having little money, but the ability to use money — one of
the capitalizers who are rapidly becoming a distinct class in the
country. He borrowed a large sum from this savings bank and
set up a factory, into which came many of the very men whose
deposits he had lumped together and used to make himself an
employer of their labor. Might they not have associated them-
selves and become their own employers or might they not have
hired him as their manager %
The probable reason that they did not make themselves their
own employers was that they were conscious of lacking the power
of association necessary for such a business, and the individual
energy and experience and power of command essential to its
success. It is the lack of these factors which has made co- operative
production so slightly successful hitherto. There must be a head
to a factory, a head with natural powers of command. An army
cannot well be run by a committee. That method of management
has been tried in the face of the enemy, and the results have not
been very brillj^nt. Would you like to trust yourself on a trans-
atlantic steamer, that was sailed by a committee of the crew ? In
some form or other, for years to come, industry must find natural
leaders. Those leaders may hire their men or their men may hire
them — as our workingmen doubtless will come to do, when they
have developed their powers of association higher.
Until that time, they must of necessity be content to be taken
into silent partnership by capital — that is, by the few men who
have laid by enough to found the costly plarits that are essential
to modern industry, and who have developed mental power enough
to organize and manage the large and complex affairs of modern
production. Until the time comes that you can offer yourself work,
somebody must offer work to you. Is the man who now offers
you the work in which you are to find bread and butter your
enemy, or is he your friend ? What will you do just now without
him ? Suppose you make the firm too hot for him ? He can go
out of the business, and live perhaps on his income or turn his
principal into some other enterprise. What are you going to
do if you break up the firm ? In the present state of society your
condition would be helpless. The fact that it would be so is one of
the most alarming features of our social order ; one that calls upon
us all to see that it is corrected, so that the natural equation of the
problem of distributing the rewards of industry may be worked
out freely and fairly. But, meanwhile, do not shut your eyes to
the facts of the situation.
Will it pay you to make it so hot for your employer as to disgust
him with the concern ? You can doubtless worry him well-nigh
to death, but how much will that increase the productivity of the
firm in which you are a partner? A certain woman, who has
some prominence among the Knights of Labor as an eloquent
champion of the order, in the course of a recent conversation kept
repeating with a malicious tone the refrain : “ We can injure the
manufacturers.” Judging from the action of some of your associ-
ates over in Long Island City lately, this sister seems to have
expressed your views of the way to bring capital to terms. Doubt-
less you can ail injure the manufacturers, but have you worked
out in your minds the problem of how their injury is going to
benefit you ? Are they to be thus made more friendly to you ?
Are they to be thus made more able to allow you bigger wages ?
You can ruin them if you will — but then when they close up their
mills where are you going to be ? Do you make much by lying idle ?
My hands can easily enough injure my head, and knock what little
brains I have into a very inactive condition, but I am not aware
that my hands will be any the richer in warm, red blood or in sup-
plies of nervous energy, because of this heroic treatment of my
very defective head.
So long as you are obliged to seek an alliance with capital,
remember, I pray you, that, as Chief Arthur lately assured you, your
partner has rights that you are bound to respect, and which you
must needs respect if you expect him to work with you.
Your employers plant is his property. You have no right
to injure it.
Your employer has the right to control the business that is
carried on upon the plant which he has provided and by the knowl-
edge and experience which he supplies. It is not fair to expect
him to carry on the business in which he has risked his capital by
the dictation of the men who may be with him to-day and may
have left him to-morrow.
You have a right to refuse to work for him if the terms are
not made satisfactory to you ; but you have no right to impose
yourself upon him against his will. I believe thoroughly that
labor has the right to claim from society at large that it shall have
a chance of being employed by others or of finding employment
for itself. That is the right to “ life ” which is one of man's un-
alienable rights, according to our Declaration of Independence.
No people can afford to have a large body of labor shut per-
manently out from the opportunity of self-support. But this is
quite a different question from the right of the individual laborer
upon the individual employer.
Your employer has the right to seek other labor, if you cannot
agree with him as to terms. You have no right whatever, legal
or moral, to shut out from him other men who may be standing
without employment, and who are ready to accept employment
upon the terms which he offers. I understand well enough your
idea in committing this mistake. As I have already intimated,
the existence of a large body of unemployed labor is a constant
menace to labor at large. All who care for the welfare of labor
should join hands to secure some means of minimizing this danger.
But if there be other men in this city willing to take the place
of the strikers on the Third Avenue road — however unjustifiable
the action of the company may have been — the conductors and
drivers who have left the employ of that company can keep them
out of such work only by a direct encroachment upon the right
of the employer.
The employer has a right to demand that, if you are dissatified
with the terms of partnership, you shall not break up the partner-
ship firm without due notice, and never without an attempt, first
of all, to effect a peaceful adjustment of any differences. This is
the simple, necessary law of any partnership — without which its
continuance is impossible. You have the perfect right, my friend,
to strike. You can often win your point by striking. The notion
of most people that strikes are almost universally failures you
know to be far from the fact. The last Report of the Bureau of
Statistics of Labor of our own State shows that out of 222 strikes
in the city last year only 34 failed, while 59 are still pending
and 129 have succeeded, in whole or in part. But you ought to
feel more keenly than any one else the frightful cost with which
such success is won. Do you think that the increase of wages
won by the strikes of this year has counter-balanced the loss
of wages caused by the idleness of the strikers ? Strikes, as the
habitual method of enforcing the demands of labor, would be ruin-
ous to the production out of which all wages must come. Let a
chronic state of striking be induced and how much capital would
34
be invested in industry? Already the business boom which wa£
anticipated for this spring has been lost by capital’s fear to take
up any contracts in the present attitude of labor. How much
more will the aggregate production of the year have to divide
between the industrial partners by this epidemic of strikes ? The
strike may and probably must be the last resource of labor, just as
war is the last resource of nations. But, like war, it is too costly to
resort to without first trying other means of adjusting differences.
Your employer has the right to the good-will of his business.
You have doubtless the right to use moral suasion to draw away
custom from him, and to thus punish him for his bad treatment
of you ; but you have no right whatever to step beyond the limits
of moral suasion and, by the tyranny of public opinion or by the
fear of physical violence, drive away his ciistom from him. The
boycott is a weapon cf tremendous power, doubtless, but it may
become the power of a reign of terror. In some of the forms in
which it has been used lately it is a direct interference with the
proprietary rights of a business, which law cannot allow. In
these forms, it is an un-American method of redressing grievances,
which this people will always be quick to condemn, as has been
seen this spring when our citizens rallied to the support of Mrs.
Gray.
Your employer has the right to demand that you shall not
arbitrarily limit his power of production. You have of course a
right to say how many hours you will work for him, and to decline
to work beyond that time; but you have no right whatever to
deny to him the use of his plant beyond the limit which you fix
for yourself, nor to deny to other workmen the use of their
power of labor to any extent that they may feel disposed to use it.
The employer’s right here will prove to ^e your interest.
There is no greater fallacy current among our workingmen to-
day than the notion that they can improve their condition by
lessening the production of the country. On every hand one hears
the talk that what is needed is a better distribution of wealth.
Doubtless — and let us all join to aid in this more equable, more
brotherly distribution, by the force of public opinion and by law,
wherever it is possible to use the strong hand of legislation
wisely. But that which first is needed is greater production — that
is, more to distribute fairly. Do you think we have enough to sat-
isfy all wants, in our present aggregate wealth? Were our
present annual increase of wealth divided up equally among our
people, every man and woman and child would get 50 cents a day.
Is that your idea of the millennium? Would we not have a little
jollier millennium if the share to each of us was a dollar a day ?
You have the right to eat no more than half a meal — but you do
not dream of growing fat upon this right.
But I may not push these illustrations further. What is
35
needed now is that labor and capital shall recognize each in the
other a partner — an ally and not a foe, a friend and not an en-
emy; and that they shall work together for their common good.
I maintained last Sunday the right of labor to organize on
behalf of its juht claims, and therefore, I may to day, with the
greater fran sness, urge labor not to turn the mighty organizations
which it is developing into mere means of attack upon the power
which after ail is less a rival than an associate. I warn you, my
friends, distinctly, that if some of the methods which you are
pursuing at present are persisted in, you will goad capital into
opposing organizations — who:-e power will be more tremendous
and may be more despotic than anything you have hitherto
confronted. Watch your papers and you will see the signs of
the times. If you have such difficulty in contending with capital
when it is unorganized, what will be the task of grappling with
employers when they are banced together in compact association?
VI. I have thus sought to-day to pass in review labor’s
complaints against capital and capital’s answers to those complaints.
Labor feels itself wronged by being poor — it is urged first of
all to right the wrongs which it is committing against itself. Labor
looks with suspicion on wealth — it should distinguish between
the legitimate wealth which the employer wins by honest industry
and the respectable robberies of the freebooters of the business
world. Labor claims to create all wealth and demands its rights —
it must learn that brains as w r ell as brawn work, that capital as well
as labor produces, and be content to share the rewards of the
common toil. Labor complains that more than a fair share goes
to the employer — it is reminded that brains are dear and that it
must expect to pay highly for the high quality of the service ren-
dered by the employer. Labor insists that capital is its natural
enemy, between whom and itself there must be strife — it is pointed
to the fact that the two are partners, who should work together
for their common interests.
At the close of the Franco-Prussian war, Ernest Kenan ad-
dressed an impassioned appeal to his countrymen to face the facts
of the situation, however hard those facts might be. His country-
men thought him unpatriotic, because he told them the truth. None
the less, they have come slowly to recognize that there is no pros-
perity possible in shirking facts, and that he was their true friend
in opening their eyes to the realities of the situation.
My words may have seemed hard to you, my friends, who are
workingmen. God knows I have no wish to speak hardly. My
heart is full of the sincerest sympathy for you My soul is stirred
with indignation when I contemplate the ways in which society has
handicapped you in the race for life. My poor powers are at the
service of your cause. All true men feel for you, and long to lend a
hand in bettering your condition. To secure for you the best
possible lot is coming to be recognized as the task of the State.
36
But, none the less, nothing is to be gained by blinking facts. In so
far as you are at fault for your condition, you must help yourselves
before other help can be of real assistance to you. Instead of
cherishing illusions, you must prick your bubbles and find out what
you hold in your hand. You must thus face the truth that, what-
ever the future may have in store for you, the present binds up la-
bor with capital in common interests.
The fight that you have to make is not so much . against capital,
as with capital against your* common foes. The fact is that capital
and labor are both in the same boat to-day and are trying to make
headway against unfavorable currents that are setting in from many
quarters. Your wages are low, and your employer’s profits are
small. You find little chance for work because he finds little chance
for safe and profitable investments. Let me give you a striking
illustration of this fact. You have all noted doubtless the danger-
ous revolt of labor in Belgium, lately. The whole of the little king-
dom has been agitated by this convulsion. It turns out that the
miners with whom the struggle originated were living on bread,
without even butterine — upon the very verge of starvation ; while
the capital invested in the mines was reaping only 2 per cent. The
London Times is my authority for this statement. Let capital and
labor pool their issues and turn their combined forces against their
common foes. What these are I propose at least to indicate hereafter.
Friends, you know well the story of the exodus of the children
of Israel. How sad the tale of their bondage in Egypt ! How
heroic their resolve to free themselves ! How bright their visions
of the promised land, a land “ flowing with milk and honey ! ”
How near seemed that land, yet how long it took them to gain it,
wandering about in the wilderness of Arabia for a whole generation !
There was a short cut across the desert, but, for good reason per-
haps, they took the wrong road.
Heed well that ancient story. You sigh “ by reason of the
bondage ” of our industrial system. You lift your eyes to the
promised land of which your prophets are telling you : “ a land
whose stones are iron and out of whose hills thou mayest dig
brass ; ” the land wdiose title vests in the Lord, that it may be the
common heritage of his children, to the end “ that there be no poor
among you.” No mirage, that vision of the promised land, but a
substantial Canaan, which you shall yet win if you will. You vow
to free yourselves from the task-master’s lash and win your freedom,
and you band yourselves together for the heroic effort of the new
War of Economic Independence. You have allies waiting to help
you. The Omnipotent one hath heard your groaning — He will
come down to deliver you. Your Moses even now lies in some ark
of bulrushes. Judgments mighty and terrible will be wrought for
your deliverance. But when your great host goes forth from Egypt,
see that ye take not the wrong road to Canaan lest ye wander in
the wilderness forty years !
37
SOCIETY’S VIEW OF THE SITUATION.
There is a forgotten man back of the present controversy be-
tween capita] and labor. His name is Society. There are about
50,000 manufacturers in the country, and about 3,800,000 men and
women employed in manufacturing, mechanical, and mining indus
tries. The population of the country is over 50,000,000. The
forgotten man is a bigger man than either party in the present
contest.
"Without him, neither of them would find much value in the
result of their combined production. Society at large makes the
demand which calls forth all supply, and creates the security with-
out which there would be no wealth. Society has a right to a
voice in this dispute.
The forgotten man is really capital under another name and
labor in changed clothes. Employer and employee alike are more
than either employer and employee. Each is a consumer as well
as a producer. Each stands in many other relationships than those
involved in the problem of capital and labor. Each is a citizen of
a great nation, a participator in a noble civilization. Each has need
to rise above the personal aspects of the present struggle and view
it from the stand-point of society.
Whatever makes life worth living, society has embodied in her
institutions, and on behalf of these she lifts up her voice to-day
against the mad strife of her own children. If I owned a house and
rented two rooms out to different families, I should decidedly
object to their quarrelling so savagely as to endanger my property.
However indisposed to interfere in their quarrel, I should not
stand silently by when I saw them setting fire to my premises.
I. The immediate evils of the present disagreement between
capital and labor are serious enough. This strife is crippling the
resources of the workingmen of the country and shrinking the
profits of capital. It is checking production on every hand and
arresting the natural revival of business which was due this spring.
It is, as was lately seen in St. Louis, laying an embargo upon
the general traffic of the land and at times actually blockading the
leading ports of our internal commerce. It is frightening off capi-
tal from new investments which it would otherwise be now seeking.
It is accumulating in the labor market an increasing body of un-
employed or partially employed men, whose inability to demand
continues to yet further to depress the productive power of the
country, while it leaves themselves in bitter want. It is thus im-
poverishing the nation. It is killing the goose that lays the golden
egg. Society at large is suffering in this arrest of trade. The
development of our civilization is thus temporarily checked. The
nobler life of man languishes in the economic stagnation. A
continuance of the present contest means a prolongation of the
38
industrial depression, whose consequences will therefore be far-
reaching and lamentable.
II. Nor is this all the evil. Acute inflammation prolonged
develops chronic diseases. Angry words pass readily into angrier
blows, and the quarrel may end in a fight in which society’s prem-
ises may easily be wrapt in flames. On the one hand labor is
organizing as never before, and is using its newfound power
to deal summarily with its supposed enemy, capital. On the
other band capital is also organizing. When one is hit hard be-
tween the eyes it is a natural impulse to hit back with equal vigor.
Capital at present is clinching its fists to deliver its return blows
straight from the shoulder. The lock-out -is answering the strike,
the black-list is replying to the boycott, manufacturing and trade
associations are drawing up into line over against labor unions.
Each further development of aggressiveness on either side will
naturally provoke yet further aggressiveness on the opposite side.
The immediate outlook is therefore stormy. We may be entering
an era of social as well as physical cyclones.
Capital and labor alike may do things in hot blood which the
sober sense of either would utterly condemn. Local anarchy may
easily be precipitated out of such a strife.
For the first time in the history of our country, anarchy is be-
ing preached among us as a gospel. Missionaries of the old world
have come with these good tidings of hatred. A moral epidemic is
sweeping over our western civilization, a madness of despair. A
savant like Elise Recluse and an aristocrat like Prince Krapotkine
are preaching this bad-spell with the fervor of enthusiasts. Passing
strange as it may seem to us, these men are teaching the poor that
there is no hope save in the utter destruction of the social order as
it exists. When our present tyrannous institutions are swept away,
so they tell the people who listen to them, then there may rise a
new order of plenty. When such men preach this gospel is it any
wonder that the ignorant and hungry are carried away by this dream
of despair ? *
Within the last two weeks I have received a couple of letters
plainly avowing anarchism as the last resource of labor. If you
know anything of the wilder labor sheets of this country, you will
understand the significance of such letters. For years past, men
have been taught to prepare for just such vengeance against society.
Paris never heard more frantic appeals to class-hatred than our
great cities have heard within the last half decade. This wretched
creature. Most, has not only gone about freely uttering his inflam-
matory appeals,' but has deliberately given to the public a book
entitled “ The Science of Revolutionary Warfare, an Introductory
Hand-book to the Preparation and Use of Nitro-Glycerine, Dyna-
mite, Gun Cotton, Bombs, Poison, etc.” This fiendish book even
stoops to give lessons in the warfare of the savages. It directs
34
concerning the use of poisoned weapons. “ The best of all poisons,”
he says, u is the poison of the dead human body.” Do not let us
blind our eyes to the fact that just such moral monsters have
been begotten by society, creatures of whom Guiteau was a type,
men half lunatics, half knaves, and then armed with the weapons of
the Titans.
In themselves, such fiends in human shape can have little
power, but, given a state of things such as that into which we are
drifting — hosts of idle men proscribed and -unable to find work,
hungry and savage with want — and these monsters have the follow-
ing out of which they may readily precipitate disorders vastly worse
than any our land has seen. Well says Most’s paper : u Five hun-
dred revolutionists, each provided with half a dozen bombs and
working in concert could produce such a panic in a great city that
a small number of determined men might get possession of all com-
manding points.” Back of such half-crazy creatures are associa-
tions which for several years have been deliberately and systemati-
cally carrying on the propaganda of just such ‘principles ; societies
organizing the more desperate elements of labor for a violent i evo-
lution. A wide-spread strike at any time may give the opportunity
for which these anarchists lie in wait. We saw in our own city
within a few weeks how near we might thus be to the most serious
disorders. New York cannot surely have forgotten so soon the
dreadful scenes of the draft riot ! The country cannot surely have
forgotten already how near it stood to the verge of a frightful chaos
in 1877 !
I have no fear for any general or prolonged disorders from the
action of our bona fide workingmen. No grander illustration of
heroism has ever been given in history than that which the opera-
tives of the Lancashire Cotton Mills presented when, brought
well-nigh to starvation through our Civil War, they endured silently,
patiently, peacefully, for the sake of the principle that was at stake.
But, when the camp-followers of the hosts of labor are these demons
of anarchy, we may well dread the scenes that may follow our eco-
nomic conflict.
III. Capital and labor are alike recruiting for the armies of an-
archism. Hunger is always savage. One who sees wife and children
crying for food is not apt to measure consequences carefully. The
man who lifts his two fingers to order out hundreds of hands and
leave them in idleness is enlisting followers for anarchism. The
Order or Union that uses the strike carelessly must hold itself in
part responsible for the desperation which the anarchist turns into
bombs. The association of employers which wages war, not against
the abuses of labor organizations but against their existence, must
hold itself in part responsible for the consequences that follow upon
such a running up of the black flag.
I know a man of superior mind, who, a few years ago, was a
40
mill band in a New England factory. He bad worked in that same
mill from the time be landed on our shores. The owners of that
mill one day placed in bis hands, as in the hands of the other oper-
atives, an ironclad contract, forbidding his connection with any la-
bor asociation, on pain of instant dismissal. He declined to sign
the paper, and lost his place. Wandering from mill to mill, he
found everywhere, on one excuse and another, work denied him, urn
til it dawned upon him that he was ostracised throughout New
Ed gland, and that not a cotton mill was open to him. On the
verge of starvation, maddened by despair, having turned every
whither for some opening through which might come bread for his
babies, he one day took wife and children with him to the mayor’s
office, carrying in his pocket a revolver — determined, as he told me
afterward, to stay there until some work was found him or to shoot
the man who tried to remove him. If this be the action of the black-
list upon a man of brains, what will be its infuriating influence upon
the rank and file of labor? Our great employers seem bent on go-
ing into the business of manufacturing such human dynamite.
Nor is this all our danger. Back of our embittered working-
men, back of their monstrous camp-following, stands the great
rabble of the criminal population of our cities. We must never
forget that just below the fair surface of our civilization there is
a genuine barbarism ; that below the New York of wffiich we know
there is a city of criminals, a villainous population ever ready
to swarm to the surface, when the mechanism of society comes
to a stand-still. Let the arm of the law be paralyzed for a few
days, let travel be stopped and communication be cut off while
mobs are in our streets, and who can venture to predict the scenes
that may ensue ?
IV. These visions are sombre enough, but they are not the
darkest shadows in the back-ground for the lover of humanity.
Society will survive such shocks, though our streets run in blood.
Order will be restored and civilization will be maintained. But are
we sure that the reality of the Republic may not disappear, as again
and again republics have thus disappeared ? No one who reads
history with his eyes open should be blind to the fact that through
just such experiences the greatest republics of antiquity perished.
We wonder at the instability of those beautiful Greek repub-
lics ; but we may cease to ^vender when we perceive the facts on
which the muse of history has not cared much to dwell — being too
busy with tales of court and camp. Greece established equal politi-
cal rights for all her citizens, but failed to develop any equality
of conditions. Growing economic inequalities, with the growing
social inequalities thus involved, rent each Greek city into
classes, between which a deepening strife ensued. Plato wrote:
“ Each of the Greek states is not really a single state, but comprises
at least two; one composed of the rich, the other of the poor.”
41
A modern French student declares that : “ The Greek cities were
always fluctuating between two revolutions, the one to despoil the
rich, the other to reinstate them in possession of their fortune.
This lasted from the Peloponnesian war to the conquest of Greece
by the Romans.”
Rome tells the same story. Its history turns upon the ever
embittering strife between patrician and plebeian ; beginning with
peaceful political agitation, but ending in bloody revolutions and
bloodier counter revolutions ; Marius and Sylla taking turns at
converting the seven hilled city into a hell of demons. When the
strain grew too severe, when civic strife became chronic, when
property lost security and the social order shook with the convul-
sions of the proletariat, then came the Caesar, the savior of society,
and the republic disappeared in the empire.
Our modern world has not escaped the ancient danger. It
tends toward democracy, yet democracy, while realizing political
equality, fails thus far to realize any approach to equality of
economic and social conditions. De Tocqueville pointed out that,
such being the case, democracy must develop social strife. Out
*of that strife may come the worst of dangers for our Republic.
Macaulay left this prophecy, which it behooves us now to ponder
well : “ The day will come when, in the State of New York, a mul-
titude of people, not one of whom has had more than half a
breakfast, or expects to have more than half a dinner, will choose a
legislature. Is it possible to doubt what sort of legislature will
be chosen ? On one side is a statesman preaching patience, respect
for vested rights, strict observance of public faith ; on the other
is a demagogue ranting about the tyranny of capitalists and usurers,
and asking why anybody should be permitted to drink champagne
and to ride in a carriage, while thousands of honest folks are in
want of necessaries. Which of the two candidates is likely to be
preferred by the workingman who hears his children crying for
more bread ? I seriously apprehend that you will, in some such
season of adversity as I have described, do things which will
prevent prosperity from returning. Either some Caesar or Napoleon
will seize the reins of government with a strong hand, or your
republic will be as fearfully plundered and laid waste by barbar-
ians in the twentieth century as the Roman empire was in the fifth ;
with this difference — that the Huns and Vandals who ravaged the
Roman empire came from without, and that your Huns and Vandals
will have been engendered within your own country and by your
own institutions.”
What would Macaulay have said could he have seen the Cab
ifornia Constitution passed a few years ago ! We have thus actually
found one of the dangers to which he referred coming true Already
at the end of our first Centenniad, we hear the whispers which warn
us that some of our wisest and best men have been anticipating the
42
possibility of some fulfillment of the other alternative of his proph-
ecy. A few years ago, one of the leading Presbyterian divines of
our country, in some lectures upon socialism, gave utterance to this
portentous omen : “ It is no procession of peaceful industries that
I see marching now. Labor and capital, from opposite camps, are
moving toward one another. * * * * It may be to meet as
Pompey and Caesar met at Pharsalia. I confess I expect no
Csesar. But then I expect to see this communistic madness rebuked
and ended. If not rebuked and ended, I shall have to say, as
many a sad-eyed Roman must have said nineteen hundred years
ago, I prefer Civilization to the Republic After the riot in Chi-
cago, Professor Swing was reported as echoing this word of Dr.
Hitchcock.
Woe for us, woe for the world if already, in the first shock of
this great contest, we are to prepare ourselves even to contemplate
the possibility of surrendering those free institutions for which
our fathers toiled, in which, the hopes of humanity rest. Yet
no one who has watched the signs of the times during the last few
years can doubt that these two utterances are fair expressions of the
frightened feeling that is spreading through our midst, and that
may readily crystalize, in times of renewed danger, into actions
readily taken but not to be undone again save by bloodier revolu-
tions than those through which fell the monarchies of old. It
would not require many panics for Property to cry aloud for some
strong man to come forth as the Savior of Society. The coup d'etat
would be easily wrought. The old form of freedom might continue,
as the old form of liberty continued in Rome — the ghost of a dead
republic. Our Republic could be Mexicanized without any change
of titles. Let us then ponder the observation of one of the lead-
ing papers of Europe upon our recent labor riots : “ The true trial
of republican institutions is now coming on.”
I am not an alarmist. But, reading history and watching the
signs of the times, to me it seems plain that we are blindly drift-
ing into no less serious dangers than these which I have outlined
before you.
Y. Society therefore must needs call on both sides of this con-
flict to pause, before the lists are drawn, and contemplate the issues
of such a. campaign. There is doubtless much to be said on each
side, as I have feebly' tried to indicate ; therefore each side needs
to approach the other calmly, considerately, dispassionately and with
an open conscience. Each side is more or less at fault, as I have
also tried to show.
The essential fault of capital, as it seems to one who looks upon
the contest from the stand-point of society, is its failure to recog-
nize that we are in the midst of a period of economic and social
transition. The eighteenth century began the political emancipa
tion of the people. Midway in that process the nineteenth century
43
has entered upon the most astonishing industrial revolution of
history. Science has harnessed nature’s forces to the mighty mech-
anisms which would have seemed miracles to the men of two or
three generations ago. The conditions of industry and trade have
been completely transformed. Under this too rapid transform-
ation the competitive system labors heavily, getting out of gear
every few years and coming to a stand-still, threatening to break
down altogether. Plainly some higher organization of the industrial
mechanism is becoming a necessity — and may therefore be ex-
pected to develop in due time. Meanwhile we are between the old
and the new order, in a period of disorder.
This disorder bears indeed heavily upon capital, but it bears
far more heavily upon labor. Social inequalities, which of old
pressed lightly on workingmen, gall sorely now that there is
equality before the law. Even the economic freedom of labor is
being endangered at the very time that it is entering upon
political freedom. It is inevitable therefore that there should
be the struggle that is taking place to-day. That struggle is
labor’s endeavor to throw off the burdens of the present disorder,
and its aspiration for the realization of the higher economic and
social order which looms above the horizon.
It is in the interests of society that this evolution should progress
naturally. The greatest good of the greatest number demands a
more equitable distribution of wealth, a higher general level ; even
though that levelling upward should reduce the mountain tops
of wealth which now tower above our dark valleys. It is indispens-
able to a republic that the mass of the people should be econom-
ically free, and thus be loyal to t the social order. Whatever de-
velopments are necessary to secure something like an equitable
distribution of wealth and to provide for the economic freedom
of labor must be sougUt by those who .have the welfare of the
nation more at heart than personal aggrandizement or the priv-
ileges of a class. For one, I am thoroughly satisfied that society
is moving forward to such a higher industrial order, as the true
economic fruition of our new political order.
This evolution may be helped forward — it cannot be per-
manently thrust backward. Its pathway can indeed be blocked —
but then its forces will only rise and swell over all obstacles,
no longer in peaceful progress but in the fury of the freshet.
This peaceful evolution can readily be turned into a bloody revolu-
tion. This is the danger which I apprehend from the side of
capital.
The essential fault of labor to-day seems to me its failure to rec-
ognize that this evolution of the higher economic and social order
is to be brought about not through cataclysms, but through a grad-
ual, orderly, peaceful, natural development out of the present system.
Labor dreams of gaining the millennium, which it has sighted, in a
44
bound. Yain illusion ! As Lasalle taught the workingmen whom
he banded together in Germany, the economic millennium is to
come in slowly and gradually. The roots of social civilization are
not to be cut in order to bring forth the flower. Better conditions
must be supplied, richer nourishment must be secured, more skillful
care must be devoted to the plant and thus the life must strain
forth toward its beautiful blossoming. Legislation cannot wind up
the old order at a given date, and establish from and after a certain
day the new and higher civilization. Legislation can only facilitate
the natural growth of society. Force may be invoked, but force is
more apt to wreck than to build, more potent to destroy than to
create.
Whatever the injustices and oppressions of our present state of
society, those wrongs are to be righted rather by constitutional
treatment than by surgical operations. Heroic remedies may cure,
but they may kill. The knife may remove the tumor, but it may
sever the arteries and let the patient bleed to death. Society can-
not afford to run any risks. Mistakes would prove too serious in
their consequences to be lightly ventured.
The social order, as it now is, with all its manifold imperfec-
tions, is the result of generations and centuries of human toil. It
has been bought at a fearful cost. It has been won through untold
sacrifices. It has been baptized with blood and tears. It repre-
sents immense gains upon the past. It holds the promise and
potency of vastly greater gains. It is growing the higher order
slowly but surely before our eyes. As Dr. Barth, one of the first
economic authorities of Germany, writes : “ Take a list of wages
wherever you please, and you will always find wages to have ad-
vanced with rare interruptions during the last half century.” Even
that apparently most dangerous foe to labor, mechanism, is visibly
working good as well as evil — as one illustration will indicate.
“ The ratio of cost per pound for labor of common cotton cloth for
the years 1828 and 1880 was as 6.77 to 8.31, wages for the same
dates being as 2.62 to 4.84 ; the average consumption of cotton,
which indicates the standard of life as well as any one item, was per
capita of total population for the year 1831, 5.90 pounds, while in
1880 the consumption rose to 13.91 pounds, this being exclusive of
exports.”
Given improvements in our society which are clearly within our
reach, and the most beneficent revolution of history would be real-
ized. Society cannot allow of any crass, crude tinkering with its
complex organization. Theorists must not try experiments which
risk the life of civilization. We will listen sympathetically to your
beautiful theories, my socialistic friends, and allow that if men were
made over again and all the conditions of earth were changed the
millennium might be set up to-morrow ; but we must insist that,
while men are as we know them and the conditions are what we still
45
find, it will not do to try brand-nevr schemes, however well they
work — on paper. We will even confess that your noble ideal of the
co-operative commonwealth is the very ideal before an earnest so-
ciety and a noble State, but we will not make the mistake of im-
agining that an ideal is a reform bill, a measure of practical
economics and politics, to be embodied now in legislation. Society
must grow slowly toward its ideals. We can take no leaps in the
dark. We must move carefully, one step at a time, according as we
find our footing secure among the crevasses over which we are cut-
ting our way.
In truth, however, as I have sought to hint in the previous
sermons, and as will appear from what I have just said, the chief
responsibility for the present state of things lies neither with capi-
tal nor yet with labor. The economic mechanism is out of gear, in
our transition period. We have outgrown the old methods of in-
dustry and trade and we have not grown into an understanding of
the nejv methods and a mastery of them. Society itself is so im-
perfectly developed that it is seemingly aggravating these economic
disorders. The State is as yet so far from a knowledge of its own
true functions or a capacity to assume them that it fails to provide
that wise direction of the head of the body politic which is absolutely
necessary to any solution of our problem — the co-ordinating action
of the brain of the social organism.
Society, therefore calls upon both capital and labor to recognize
the facts of the situation, to cease from their mutual strife and to
join hands in trying to solve the great problem which our age pre-
sents to civilization, by a movement all along the line of social devel-
opment. That task is a long and tedious one, calling for the utmost
patience, the most extreme care, in which all the resources of the
economist, the social scientist and the statesman will be heavily
taxed. The mental and moral conditions in which the task is taken
up are however of the first importance. They constitute a prime
factor in the problem which we can set at work immediately. Eight
feeling is quite as important here as right thinking. While the
understanding is plodding along in its slow-going gait toward the
correct conclusion, the feelings can leap to a point from which men’s
instinctive action will put the whole problem in a vastly more favor-
able light. The worst symptoms of the present situation would
yield speedily before the action of a calm and kindly spirit, the
spirit of men who feel themselves brothers and so try to do justly
by one another.
VI. To this I appeal to-day in the name of civilization's fairest
flower, the greatest and most beneficent of earth’s republics. We
have outgrown the childish exuberance of our early Fourth of July
self-glorification, but only to grow into a chastened sense of a most
real mission from Providence, calling to high duties and imposing
solemn responsibilities. Our “ manifest destiny ” is verily that con-
46
cerning which our great seer wrote, in the midst of the darkness of
our Civil War :
‘ ‘ The word of the Lord by night
To the watching Pilgrims came,
As they sat by the seaside,
And filled their hearts with flame.
“ God said, I am tired of kings,
I suffer them no more ;
Up to my ear the morning brings
The outrage of the poor.
»
“ Lo ! I uncover the land
Which I hid of old time in the West,
As the sculptor uncovers the statue
When he has wrought his best ;
“ I will divide my goods ;
Call in the wretch and slave :
None shall rule but the humble, *
And none but toil shall have.
“ I will have never a noble,
No lineage counted great ;
Fishers and choppers and ploughmen
Shall constitute a State.
“ And ye shall succor men ;
’Tis nobleness to serve ;
Help them who cannot help again :
Beware from right to swerve.
“ To-day unbind the captive,
So only are ye unbound ;
Lift up a people from the dust,
Trump of their rescue, sound ! ”
With high hearts did the people of the land answer that call
of God, and now to-day the Nation renders God thanks that when
the awful altar was reared there was strength given for the sacrifice
through which the Republic’s life was saved. Beautiful day, on
which memory weaves fresh garlands for the tombs of the Nation’s
saviors, and patriotism sings the glories of their heroic deeds !
Are the children of such fathers to prove themselves worthy of the
glorious heritage which they have bequeathed, in title deeds w T rit
with their own heart’s blood ? Do you dream that the day of
heroic effort has gone by, that Duty’s voice is not again to speak
to the Nation in thunder tones, calling to new tasks of self-sac-
rifice ? Lo ! even now the storm clouds of a sorer strife are massing
in the horizon, dark, heavy, sulphurous.
Shall we not then learn the lesson of this beautiful day, whereon
North and South, so lately in deadly conflict, go forth together to
the graves of the brave boys in blue and the brave boys in
gray ? Why should capital and labor wait for the end of a bitter
47
strife to find that after all they have interests in common ? Why
reach peace only through the miseries of an industrial war? Be-
neath the shadow of our great Grant’s tomb, laden with the flowers
of a grateful land, the Nation which he saved lays its hand upon
her angry children whispering : “ Let us have peace.” *
* This lecture was given on Decoration Day.
48
THE WAY OUT.
The Alpine tourist learns a secret of progress in his mountain
climbs. As he leaves the cold climate of Germany behind him and
trudges up the old St. Gothard pass, he does not dream of being
able to survey in a bird’s-eye view all the windings of his zigzag
path, until it lands him in fair Italy. He is content to see but
a little way before him, and pushes on confident that, as he
rounds the corner, a new stretch of the upward path will disclose
itself. ii.gain and again the narrow road may seem to be blocked
in the distance by some insurmountable mountain wall # or to make
a plunge over some sheer precipice, but he plods on sure that,
when he reaches the point where advance seem impossible, some
way out will open for him. Thus he climbs until at last the
summit is passed, the descent begins, and soon he is amid the
smiling vineyards and gray-green olive groves of the sunny South.
If any one has expected to-day a topographical survey of
the route by which we are to reach the promised land of our
industrial civilization, he is doomed to disappointment. I have
never been in that fair land, save in dreams. Nor do I know
of any one who has visited it otherwise. Some of those dreams are
indeed to me far more than mere illusions — they are clairvoyant
visions, prophetic glimpses of what the future is to open ; whose
main outlines I trust, while I do not attempt the folly of writing a
physical geography of Utopia. If Society is to find its way into
its Italy, it must climb an untrodden path over the mountains,
following on from point to point as seems feasible, seeing ahead
in short vistas, rounding corner after corner, finding the passage
apparently blocked again and again, and yet always discovering
some way out, until at the end there comes the easy drop into
the fair land of peace and plenty. If we wait until we see the
whole pathway open before our eyes, we shall never move forward.
We must make for the points that are in sight, and trust that
when we shall have won them, we shall see yet further ahead, and
thus grope our way out.
The Social Problem is so vast and complex that no one but
a charlatan will pretend to have found its complete solution. It in-
cludes a host of special problems, each of which has to be solved
before the grand equation can be completed. The quack may
offer a specific for the disease of the social organism, and insist
on heroic remedies, but the wise physician will be content with
watching the course of Nature’s development, and with treating
the case symptomatically as the conditions change.
No one can carefully study the situation without recognizing
that the trouble lies far below the surface on which men usually
dwell. If that trouble were confined to any one country it might
be attributed to local causes. How can it be due to our tariff
49
alone, when one finds the same state of things in protective
countries and in free trade lands ? How can it be due to any one
or more of the other causes often assigned, w r hen it is found in
nations where those causes do not exist ? The present depression
prevails in all the industrial countries of the Western world.
Plainly, certain constant factors are working to produce this
uniform result in different lands, under different political, social
and economic conditions.
While there would be no real overpopulation were our systems
of land tenure wisely ordered, there is a relative overpopulation
in most countries — a pressure upon the resources of the earth as
now developed, and this fact enters largely into the problem.
The marvelously rapid introduction of power-machinery has
very much to do with the situation. This is multiplying the press-
ure of population enormously, in the manufacturing centres, by its
immense displacement of human labor It has created what we or-
dinarily speak of as an overproduction— meaning by that simply
an overproduction relatively to the power of the people at large
to consume. It has thus glutted the market everywhere, causing
stagnation in industry and trade. This enormous productive power
has fallen into the hands of individuals, before society has devel-
oped any method of regulating its activity in the interests of the
people. The socialist charge of “ planless production” is valid.
Production has been rushing ahead under the heedless greed of in-
dividuals, without their stopping to consider the wants of society,
its power of consuming. Herein, as it seems to me, is one of
the most powerful factors in our present problem. This is evidenced
by the fact that the countries which have not developed this
mechanical power are relatively free from the troubles of the
industrial nations.
The problem is further complicated by the breaking down of
the old-time barriers between different nations. There is now
but one market, and that is twenty-four thousand miles long. Each
people is competing with every other people. Wages therefore
tend, except as counter-currents act upon the labor market, toward
the lowest level. A process of equalization is going on among all
nations. If the higher peoples cannot level up the lower peoples,
they themselves will be levelled down to the conditions of the
cheapest labor.
Back of all other factors is the increasing taxation which
rent imposes in industrial and trade centres. Capital and labor
are dependent upon land. The systems of land tenure in the
Western world exaggerate this dependence. The profits of capital
and the wages of labor are thus being increasingly depleted to
pay the tribute of rent.
These are but a f^v of the economic aspects of the problem,
in its large and general form. Back of all the economic factors are
50
other and yet larger factors. Many social forces are working in the
problem, complicating the purely economic disorders. The prob-
lems of vice and crime open side aspects of this gigantic question,
full of perplexities. Under the law of heredity, physical, mental and
moral defects are dowering each generation with a load that sinks
multitudes into poverty. The science of government is as yet so
imperfect that the functions of the State — the most important fac-
tor in the problem — are very inadequately discharged. Our system
of education, our burdensome taxation, our political corruption,
our municipal mismanagement — -these and a host of other defects in
government tell mightily upon the problem.
How difficult then is that problem ! How delicate the task of
solving it ! What patience the attempt demands ! That it is solv-
able is unquestionable to him who believes in progress. The human
mind is turning its energies upon it and studying it from a hundred
points of view. Already, light is breaking forth from the darkness,
and gleams of the coming day are dawning. Time alone is requisite
to bring that consensus of economic judgment in which will be re-
vealed to man the laws governing the situation — by laying hold of
which he shall be able to extricate himself from the present
trouble.
Meanwhile there is much that can, be done to alleviate* the sit-
uation, to facilitate the social evolution, to work out details of the
problem and thus prepare for its general solution. In our coun-
try, we are so favored that we ought not to feel the more severe
pressure of the problem. We ought to be able to save ourselves
from going through the whole course of bitter experience under
which the old world is groaning. There are some points beyond
us toward which we ought to press, trusting that when we have
won them the way out will open yet further.
I. Our labor organizations have much to do toward the solu-
tion of the problem. Organization is an essential condition of self-
help on the part of labor. Individually, the workingman is
powerless. Associated, he will have power to gain his just rights.
I have sufficiently indicated what seem to me the great dangers be-
fore these organizations — let it suffice now that I suggest what
appears to me to be their true line of action.
Education is the prime need of labor. The associations which
these organizations bring, the discussions they open, the reading
and study they stimulate, all foster that education.
These associations can become mighty forces in the war against
one of the worst foes of the average laborer — Intemperance. They
can boycott rum.
They form the natural nuclei for the economic combinations of
which labor stands in such m ed today. They can be made vast
mutual assurance leagues. They can develop, in various forms, the
principle of co-operation ; leading out into lolh and building socie-
51
ties through which workingmen may become the owners of their
homes, co-operative stores through which they can cheapen the nec-
essaries of life and secure the best quality in them, and ultimately
co-operative productive associations through which their savings
can be capitalized and labor become to some extent its own employ-
er. I have no illusions about co-operation. I recognize clearly its
limitations. But I see in it certain very substantial advantages
which labor needs, to strengthen itself for its more arduous tasks.
My chief interest, however, in co-operation centres in the education
that it carries on ; its general quickening of the intelligence and its
practical training in business — an indispensable condition for the
coming higher forms of industry, in which labor and capital are to
blend.
These organizations secure the means for carrying on that pa-
tient agitation out of which is to come the gradual and peaceful
shortening of the hours of toil — one of the most important condi-
tions for the economic prosperity of labor and for its intellectual
advancement.
Our labor organizations provide the instrumentalities through
which the power of the ballot is to be utilized. Political action must
be the ultimate hope of labor in a republic — not the formation of a
class-party for national campaigns, but the judicious and timely
exercise of pressure on behalf of particular legislation. When our
trades-unions and Knights of Labor are thoroughly organized, they
can control legislation, in so far as such legislation is necessary and
practicable ; and thus secure the best possible conditions for the
solution of the problem.
II. Our great manufacturing and trade and commercial associa-
tions have somewhat to do toward the solution of the problem.
They can exert a very positive influence toward this end, without
repeating the mistakes of the guilds of olden times. Very much that
needs to be done for the better regulation of the business world
can be far better done by these associations than by the clumsy
hand of legislation.
Some control of speculation is imperatively needed. It seems
impossible as yet, to frame laws which will reach the evil without
interfering with the freedom of trade. But were our great business
associations bent on putting a stop to the gambling of our Ex
# changes, they could soon do $o, by the force of public opinion gen-
erated in these bodies.
Some regulation of our present helter-skelter production, in
which every man is free to push manufacturing ahead to the full ex-
tent of his power without thought or care for .the general needs of
the community, is urgently demanded. Until there is found some
better regulation of our industrial mechanism than the alternate
fever and chill of our periods of prosperity and depression, we must
expect our social problem to go unsolved. We dare not think of the
52
State’s undertaking suck a delicate task, but surely we might rea-
sonably look to these modern guilds for some honest effort to im-
prove upon our present “ planless production.”
These associations can do much toward the development of a
higher relationship between capital and labor. They can stimulate
the study of the various experiments that have been made in differ-
ent countries with reference to a more harmonious alliance between
employer and employee. They can thus foster the growth of profit-
sharing and possibly of wiser forms of a true industrial partnership.
And they can at once make for peace by introducing boards of
arbitration.
III. Society at large has something to do toward the solving of
the problem.
The economic evils of luxury have doubtless been greatly exag-
gerated, yet those evils, as far as they go, are actual. Luxury is, to
a considerable extent, an economic waste. It employs labor truly,
but largely for non-productive pursuits," in occupations which de-
moralize those engaged in them. But the true evil of luxury lies in
its immoral influences. It sets false standards of life. It multi-
plies and materializes wants, instead of simplifying and ennobling
wants. It goads men of business to a reckless pursuit of riches.
It fires the fever of speculation. It turns the noble aspirations of
poverty into ignoble ambitions. The poor hunger not after culti-
vated minds, but after silk dresses and jewelry, even though it be
pinchbeck. It feeds the jealousy and envy of the less fortunate
of earth, as they look up to the wealth that flaunts itself upon our
avenues in lavish ostentation.
Is it not time to call a halt in our selfish indulgence of lux-
urious tastes ? Society can do much toward easing the social prob-
lem, by cultivating that “ plain living and high thinking ” which is
the true glory of a civilization. Here is somewhat for womanhood
to do in the great task of our time.
Society’s demand for cheapness is intensifying the strain of the
business world. We grow indignant over the inhumanity of employ-
ers who, to make large profits, cut down the wages of their hands
to starvation rates. There is need of a good deal of wholesome in-
dignation in this direction. But let us not pour it forth too gen-
erously upon others, when each of us perhaps may need to heap
a little upon ourselves. Employers are driven into a cut-throat
competition to undersell one another, because the purchasing public
demands above everything else cheapness, and never troubles itself
about the real cost of goods.
True, it must be difficult for us, who buy, to solve this problem
before our own consciences, until it shall come to pass that our
stores will take pride in marking upon their goods the actual cost
thereof. It would perhaps seem like a strip of the millennium to
find any store honestly letting the public know the wages paid for
53
labor on its goods — but I am persuaded that whoever leads in such
a new departure will find an immense constituency waiting to sup-
port him. Meanwhile I pray you, good women, who take such
delight in shopping, remember the moral responsibility which may
be involved in your “ splendid bargains.” Go home and read again
the “ Song of the Shirt,” and muse over it a little.
IV. The Church has a part to play in working out this prob-
lem. The solution lies largely in the action of moral forces. No
legislation can determine what constitutes a just distribution of the
rewards of industry between profits and wages. It cannot be stated
in the hard and fast terms of political economy. Let the desire to
“ do justly ” really work in the consciences of employers, and some
way will be found to reach a rude equation of equity. It is the
Church’s business not merely to preach, as of old, the duty of gen-
erosity in the use of wealth, but the duty of justice in the accumu-
lation of wealth. In one of our great cities there has lately been a
bitter strike against a great employer, some of whose hands were re-
ceiving four dollars a week, while he had but recently given $50,000
toward a church. Let the Church say to Capital : “ Keep back your
gifts and pay your debt of justice to your fellow partner, Labor.”
V. The State has much to do in pushing forward the prac-
tical solution of the problem. We need not here enter into any
elaborate discussion of the functions of the State. Experience
teaches more than books. Facts are more solid than theories.
Our older school of political Economy told us that the State
could do nothing in this problem except to muddle it. As a
matter of fact, however, legislation in the interests of labor has
been forced upon the English Parliament, despite of the theo-
rists, and that legislation has proven a most substantial aid in
the elevation of English workingmen. As a matter of fact, the
State is being steadily pushed, by the unconscious action of the
social organism, into the development of new functions, and
these are thus far working well.
In truth it is only in political economy that a headless organism
is counted a natural condition of life. Everywhere else, a living
body develops a head, with brain-power capable of co-ordinating
the complex activities of the organism.
Certainly such action of the State may be easily pushed too
far. Individual initiative may be repressed by State direction,
as in I 'ranee. Herbert Spencer’s nightmare- dream of “ the coming
slavery ” is a possibility, against w T hich we need to guard ourselves.
We shall have guarded ourselves effectively against this danger if
we clearly recognize it, and, with eyes wide open, appeal to the
State for nothing that can be effectively done without its direct
action. We must not ask of the State to direct the local functions
of the body but to see that the general conditions of the organism
are healthful, that no abnormal disorders check the natural auto-
54
%
matic action of the social organs, and that, if such disorders
arise, wise remedial measures shall be used.
(1.) As the first step in this direction we have need to perfect
our political mad liner y — by which of course I do not mean per-
fecting the political machine. It goes without saying that our
political mechanism is to-day very defective ; that it needs to be
developed much more highly to realize the benefit of free institu-
tions. A true republic would provide the political conditions for
the solving of. our economic problem, in so far as the State is a
factor therein. We need to reform and develop our municipal.
State and National administration, to the end that there shall be
a government of the people, by the people and for the people.
There is room here for the co-operation of every citizen.
Capital and labor alike need to lend a hand vigorously in the
purification of our public life, in the perfection of our political
mechanism. Labor seems to me strangely blind to its opportu-
nities in this direction. Were it roused to the realization of the
evils of our present municipal administration, we might have a
government of New York in which, instead of the burdensome tax-
ation now imposed upon our community, there would be the
common sense, business-like administration of affairs which charac-
terizes many a German city. Cannot labor realize that the socialist
dream requires, as the prime condition for the vast responsibilities
which the State is to assume, a genuine civil service reform — a
government carried on as a great business ?
(2.) The State can aid in the working out of this problem by
developing her system of education. Capital understands well
enough how profits are affected by the intelligence of working-
men, and labor understands equally well how wages are affected
by its education. You can measure the relative wages of the differ-
ent States of our Union by their percentage of illiteracy. It is of
prime moment for both capital and labor that our people should
be as well educated as possible.
The State must therefore make education compulsory, as in law
so in fact. The employment of children in our factories — for which
poor parents are responsible as well as rich employers — should be
effectively prohibited, in so far as such employment interferes with
that prime necessity of our people, the education of the on-coming
generations.
Our education must be made to bear more directly upon the
pressing industrial problem. At present our common schools do
not attempt to provide for the most common necessities of the
common people. We teach the children of the people everything
except the prime need — the knowledge which maintains life, the
skill which elevates life. If there is any justification for the
State’s taxing A to provide for the education of B’s children, that
justification is primarily to be found in the fact that such education
55
is to make ont of those children £hat which they otherwise probably
would not become, self-supporting citizens, relieving A’s sons from
the burden of taxation for the support of B’s sons as paupers or
criminals. Clearly our common schools can lay the foundations for
industrial education ; adding to their present instruction in drawing-
such training in the various handicrafts — modeling, working in
wood, etc. — as will develop interest in those pursuits and capacity
for them. Thus, without making carpenters or machinists, the
public school can make the material for any handicraftsmen.
I see no reason, despite of all that has been said to the con-
trary, why the State should not provide training schools for special
industries ; since in the decay of the old apprenticeship system
there is at present little provision for the development of skilled
workmen. Certainly, however, it can foster the growth of artistic
industries, as many European countries are doing, with remarkable
success.
(3.) The State can aid in the education of thrift — the lack of
which we have seen is lowering the profits of capital and diminishing
the resources of labor. If political economy is right, as it un-
doubtedly is, in teaching that thrift is the basic virtue of an indus-
trial civilization, then the State is wrong in not making sure of
the culture of this fundamental virtue of our society. The child’s
attention should be drawn to the duty of practicing self denial for
the future. Habits of saving should be formed, and boys and girls
led to realize the rewards of abstinence. The more that the homes
of our poor fail to inculcate this virtue, the more should the State
see that her common schools train it. It is not needful that there
should be long lessons upon thrift or text -books about the duty
of saving. Let our public schools learn a lesson from many of our
industrial schools; wherein, by the simplest of machinery, children
are being trained in this important habit. What a boon it would
be to the country at large if our public schools secured for the
immense number of children gathered within them such an annual
saving as our own industrial school has done for its poor children —
a saving equivalent to a thousand dollars a year ! In France, since
1874, over 23,00f) school savings-banks have been opened, with
nearly 500,000 depositors, and with deposits amounting to
$2,225,000.
The State can carry on this training in thrift among its adult
citizens. There is a wide-spread suspicion among the poor of our
savings-banks, an unjustifiable suspicion surely, but one that is
natural, in view of the many and shameful failures that have taken
place among those institutions. Each broken savings-bank breaks
up habits of saving among a host of people. Through a large
portion of the South and West, there are no facilities for laying-
up small savings. The post-office stands everywhere, a branch of
the soundest financial institution in the land. No greater incentive
56
to thrift could be devised at present than the introduction through
our land of the postal savings system. Let the State see that
her duty is discharged in this respect. Every depositor in the
National Savings-Bank will become a shareholder in the Government,
and will be made thereby a conservative member of society. His
interests will be opposed to everything that imperils the security
of the country.
(4.) The State can reform her system of taxation, so as to
lighten the burdens which it now imposes upon industry and to
undo the artificial restrictions with which it cramps trade. This
subject is so large and complicated that I shall do no more than
refer to it, though indeed it is one of the most important factors in
the problem. Many of the well admitted principles of taxation are
systematically ignored in our methods, which are often rather
barbaric than civilized. One need be no free trader to recognize
the fact that our system of protection is not a science but a
grab-game, in which “ infant industries ” stand as much chance of
being helped as infants would stand a chance of getting at a table
amid a rush of hungry giants. Luxuries should bear the chief
burden of taxation, rather than the common necessities from
which we raise the greater part of our revenues. A direct taxation
would disclose the fact of the oppressive tolls which we now lay
on the necessities of the poor, thus depressing the consuming
power of the masses of the people ; .but we veil this folly under
our indirect taxation and suffer blindly. In many ways a wise sys-
tem of taxation could favor a better distribution of wealth while
increasing production.
(5.) The State can see to it that whatever legislation she orders
shall be impartial. Whenever labor asks aid of the Government
a great cry goes up against interfering with, natural laws, from
the parties which have fattened on special legislation. There can
be no question whatever about the fact that, alike in our National
and State legislation, capital has been aided enormously while labor
has had the crumbs which fell from the table. Compare the ex-
tent of our labor legislation with the mass of spatial legislation in
the interests of private parties — corporations, companies and in-
dividuals — and the conclusion will be irresistible. Every facility
has been provided for the organization of capital, and scarcely
anything has been done to facilitate the organization of labor.
Every safeguard has been thrown round the financial operations
of wealth, and scarcely a provision exists to-day in this State for
securing the modest monetary transactions of poverty with its
banker — the pawnbroker. Partial legislation is as unwise as it is
unjust. The interests of individual capitalists may be fostered by
the depression of labor, but the interests of capital at large can
only be fostered by the elevation of labor. The mass of men are
the great consumers of the nation. Let their power of con-
57
sumption be depressed by legislation and capital’s power of pro-
duction is restrained.
(6.) The State can control transportation in the interests of
the people at large. Exchange is an essential part of production.
Each should be thoroughly free, with no artificial restraints im-
posed upon it in the interests of the few. Modern transportation,
from the necessity of the case, tends to become a monopoly. It
should therefore be under the direct superintendence of the
State. The power given to a few of controlling our great lines of
transportation is too gigantic to be left in the hands of individuals.
I am aware of what Mr. Atkinson shows as to the surprising
reduction of through rates upon our great lines. There is, how-
ever, another side to the question. A few years since, a com-
mittee of our State Legislature found that one, at least, of the
great lines leading into our city was charging two or three times
as much as the roads into Boston for the freight of a prime article
of food, milk ; and, as a result of that investigation, there was a
large drop in the rates. Another committee of our own Legislature
stated distinctly that our railroads imposed an annual taxation on
the country which no government would dare to lay. In many
w r ays the natural, free action of exchange is cramped by the methods
of management used by some of these great lines of transportation.
Whatever excesses the Granger movement developed, it none the
less grew out of a real evil. The State should follow the example
set by several countries of the old world, and either own our rail-
roads or superintend their direction in the interests of the com-
monwealth.
(7.) The State should regulate our foreign immigration. Hith-
erto it has been absolutely free, and to our shores have turned the
needy and discontented of every nation of Europe. It has been our
glory that we had opened a place of refuge for the weary of the
earth. Perhaps we have been a little too generous in our hospit-
ality. Certainly immigration has been pouring in faster than our
power to assimilate it. We have received over 4,000,000 immi-
grants in the last decade. We have needed most of this immigra-
tion, and, if we could have distributed it wisely, it might have
been an unmingied benefit. It has, however, tended largely toward
our great manufacturing centres, which it thus still further clogged
with surplus labor, depressing wages, lowering the power of de-
mand on which production depends, and thus leading to the shrink-
age of profits.
Plainly, we need either to restrict our immigration or to organ-
ize its distribution in the interests of the nation. If we throw open
our doors to the world, we have the right to assign places to our
guests. We have certainly also the right’ to direct our invitations.
At present we fulfill the gospel command, and go out into the
highways and hedges and compel the lame and the blind to come
58
in to the feast which we spread. We have made onr land the
dumping ground of the refuse of earth. Europe has found our
country a free almshouse for her paupers and a Botany Bay for
her criminals, costing her nothing. She has systematically shipped
to us the people whom she was glad to get rid of. This country
is somewhat large, but there is not room enough in it for Spiers
and Most. There ought to be a little more difficulty in importing
such precious specimens of humanity. We do not want free trade
in moral monsters.
There should be, in some form, stringent legislation as to the
financial ability and general character of those whom we ask to
become citizens of our great republic, if we desire that republic to
live. Already nearly 33 per cent, of our factory population are of
foreign birth — unaccustomed therefore to our institutions, un-
trained in the moral restraints which freedom imposes, creating the
raw material for corruption in politics and for violence in strikes.
The balance of power in Massachusetts is now held by the man-
ufacturing towns and cities, into which 140,000 Canadian French-
men have been imported in recent years. Among 15,000 of these
people in one town, not more than one-third can read in any
language.
Without question, it is high time that the law passed two years
ago by Congress, prohibiting the importation of cheap foreign
labor under contract, should be rigorously enforced. This is a
species of immigration which allows of no justification. It is a
monstrous wrong that unscrupulous capital should be allowed to
rake the cheapest labor markets of the old world for the material
with which to fight our American workingmen. Wages are thus
reduced, hosts of men are thrown into idleness, the standards of
life are lowered, bitter feelings are aroused, and an inflammable con-
dition gendered, out of which may readily come worse scenes than
those of the Hocking valley.
Mr. Wright, in the admirable report of the National Bureau
of Labor, thinks that there is no disposition on the part of capital
to violate this law. Some of our labor papers give another story.
There exists now 1 believe, in this city, a company incorporated to
carry on the business of importing low-priced labor. Only this
week one of our papers stated that 2,000 cheap Italian laborers were
on the way to our shores, under contract for a railroad enterprise.
If such facts exist, there is need for the enforcement of the
National law. It will prove here, as everywhere else, that the
interests of labor are the interests of capital — not of the individual
capitalists, who may have to pay the higher wages, but of capital
at large, for whose productive power there will be made a greater
demand, as labor is higher paid.
(8.) The State may well foster the colonization of the West
and South, as a means of relieving the overcrowded labor market
59
of the East. Mr. Wright estimates that about a year ago there
were a million of people without employment in our country, and
he calculates the loss to trade thus caused at about $300,000,000
for the year. Fancy $300,000,000 worth of demand withdrawn
from our markets ! Is not this one item alone enough to create
our present depression ? Set this million of idle people at work,
and every one of them would begin to buy, and through a
thousand stores an increased demand would make itself felt, which,
inspiring confidence, would start up again our industrial mech-
anism, now paralyzed largely from the mental epidemic of
distrust under which we are suffering. The biggest boom our
country has known would begin to-day, if this million of idle peo-
ple were put at work.
It would seem to any reasonable man one of the most natural
functions of a true State to aid in tiding over such periods of de-
pression, by finding work for the unemployed. This task, how-
ever, is beset with so many difficulties that it is no wonder that
our Government shrinks from it. There is one way alone, as it
seems to me, in which the difficulty might be met, without in-
curring greater dangers than those escaped. The great nations of
the old world have always relieved the pressure of overpopulation
by systematic colonization. Most of our idle people in the East
are unprepared for life upon the land. To ensure their self- support
they need to be led and directed in colonization. This is too
large a task for private philanthropy. It might perhaps be organ-
ized by the State.
If it were found possible to stimulate colonisation by any sys-
tem of loans, secured by the land and its improvements, this
would be a clear duty for the State. When there is local inflam-
mation in any part of my body my head suggests at once the
application of measures which will tend to restore the normal cir-
culation. Let the head of the body social do likewise. Certainly,
the State should facilitate individual immigration from our ; over-
crowded centres, in every practicable way.
Because of this duty of furthering a better distribution of the
population, the State should have held as a sacred trust our mag-
nificent domain of public lands which it has lavished so recklessly
upon speculative railroads. Our National Bureau of Labor de-
clares that two thirds of odr public lands have been already deeded
away and that the greater portion of the remaining third is unavail-
able for cultivation at present. A few years ago, when interested
with some of you in a private enterprise on behalf of colonization,
I wakened with a start to realize that our limit of available free land
was already reached. The shadows of the old-world problem are
thus stealing rapidly upon us. It is not yet too late to retrieve
our mistake, in part at least. It is estimated that 100,000,000 acres
are reclaimable to-day by our National Government, from railroad
6d
companies which have failed to bomply with the conditions on
which their grants were made. Here is a clear case for legislation.
(9.) The State should hold all mineral resources hereafter
opened as the property of the people at large.
If it were not for our conventional customs, how monstrous
would seem the notion that the natural resources of the earth could
be monopolized by individuals. In the bosom of the earth are
stored treasures beyond the dream of man. No human toil has
wrought that wealth. It lies there ready-made for man, waiting
only to be lifted to the surface and disengaged from its alloy. The
Creator has stored this treasure-house with his gifts for his chil-
dren. Some of these treasures are absolute necessities for their
life. It would seem to be the simplest and clearest ethical principle
that such a provision by the Most High for man’s needs should be
the common possession of the household of the. earth.
Whereas, we have let it come to pass that chance or superior
knowledge may place in the hands of a few individuals the control
of these subterranean treasures. A man may buy a few acres of the
surface ,of the earth, and, lighting upon a rich vein of mineral,
may lay unchallenged claim to whatever vast resources are thus
opened by accident to him. Bound him myriads of people may
stand shivering in the cold of winter, and he has the right to tax
them at his pleasure for the coal with which they shall keep life in
their bodies. A few years ago, in our city, a coal magnate was
asked what the price of coal was to be for the coming winter. He
replied with a smile : “ As high as Providence will permit and as
low as necessity compels.” During this present winter a company
of estimable gentlemen, over a supper table in a Murray Hill
mansion, settled between themselves the amount of coal that
should be mined during the coming season. Do you, with child-
like innocence, imagine that this quantity was determined by the
needs of their fellow beings ? Round them a few hundred thou-
sand people were buying coal by the basket full, paying at the rate
of from $15 to $20 a ton. These excellent gentlemen, however,
had no eye upon this aspect of the case, but were simply consider-
ing how to gain the largest dividends for their companies.
The State has thus left in the hands of a. few individuals the
power of imposing a most oppressive taxation upon a prime neces-
sity of life ; the power of lowering the real wages of labor and
shrinking the profits of capital, through the depression caused in
the general demand by this needless taxation. Coal is but one of
the mineral resources of the earth. Copper, lead, iron, oil —
indispensable all to our industrial life, are thus the monopolies of
individuals instead of being the common wealth of the people at
large. We may not perhaps be able to make any retroactive
legislation concerning the properties already allowed to pass into
private hands, but there are vast treasures of nature yet to be
opened.
Imagine what immense resources the State would command for
the people at large if the profits drawn from the mines of the future
were to pass into its control. Every higher need of the nation,
which now languishes, would be richly fed. We should be able to
put education upon foundations such as it has never known ; to
endow scientific research, and thus stimulate the growth of wealth
beyond even our dreams, to provide for the people free museums
and libraries and art galleries and parks and advantages of every
kind such as have hitherto only been found in Utopia.
If any one objects to entrust such large resources to the State,
as we may all well do at present, the danger could be avoided by
the Government’s running mines on a cost basis, and thus lowering
the prices of coal and other necessities immensely — whereby a
better distribution of wealth, would be facilitated while stimulating
a larger industrial productivity. And if we fear to cumber the State
with such large affairs, the working of the mines could be let out to
individuals or companies, on terms securing the interest of the
people at large.
My interest in this special suggestion grows not alone out of
the immense benefits to be derived directly from its adoption, but
out of the more immense benefits to follow indirectly in its train.
The right of the people at large to the control of the mineral re-
sources of the earth holds the principle of the right of the people at
large to control the tenure of land — the raw material of all wealth.
The natural resources of the earth in every form need to be held
in the interests of the commonwealth.
Land is the prime factor in the production of all wealth.
Capital and labor alike are dependent upon it. It thrives upon
the growth of capital and labor, and in industrial centres tends to
absorb the profits of both. This is a simple fact which can readily
be tested by any study of our present society. Land is a limited
quantity. There is just so much of it — about thirty acres for every
man, woman and child in this country to-day. You cannot increase
that land, though of course you can make it more highly produc-
tive. It does not therefore come under the regulation of competi-
tion. It is necessarily of the nature of a monopoly. As every other
monopoly, it demands therefore the control of the State, that the
monopoly may be that of the people at large and not that of indi-
viduals.
Society has the undoubted right to revise its laws at any time,
as the interests of the people shall demand. The time is coming
rapidly in the old world for such a revision. We have a longer day
of grace in this country, but sooner or later we shall find that pros-
perity for the people can be secured alone by the control of the
tenure of land in the interests of the commonwealth.
Facts are more suggestive than any amount of talk. In 1802,
the Mechanics’ and Traders’ Society of New York purchased from
ex-May or Varick the 25 x 99 lot on the northwest corner of Broad-
way and, what is now Park Place, The cost of this lot at that
time was $11,500. To-day, with the same improvements which
it had in 1802, it is worth $200,000. Rented at six per cent, net on
this valuation, the society has an income on its investment of over
100 per cent, per annum. A one-roomed store at the corner of our
street rents for $3,000 per annum. More than half the arable land
of California is owned by one hundred men. Take now a State mid-
way between the geographical extremes and we shall find that
Illinois, with a smaller population than Scotland, has nearly 20,000
more tenant farmers. In Springfield there are some 200 residents
living upon their rent-rolls as landlords of farm properties. One
man who lives in England owns 40,000 acres in one county of
Illinois, from which he draws a rental of over $100,000 per annum.
It would seem that the time had already come for us to control
speculative dealing in land, and at least to raise the question of
regulating the normal rate of rent, as we now regulate the normal
rate of interest.
The so-called Mosaic legislation leads us back to the ultimate
factor in the solution of the social problem. The land is Jehovah’s.
It must vest in Him. It must not be allowed to become the mono-
poly of the few. It must be the common heritage of Jehovah’s
people, “ to the end that there be no poor among you.” As Seneca
long ago said : “ While nature lay in common, and all her benefits
were promiscuously enjoyed, what could be happier than the state
of mankind, when people lived without avarice and envy ? What
could be richer than when there was not a poor man to be found in
the world ? So soon as this impartial bounty of Providence came to
be restrained by covetousness, so soon as individuals appropriated
that to themselves which was intended for all, then did poverty
creep into the world.”
These are some of the suggestions which I offer, not as being
at all novel but as having for the most part a higher value than that
of originality — the authority of a growing consensus of the thought-
ful students of our social problem.
Such seem to me to be some of the points for which we are
to make, if we would find the way out of our present serious situa-
tion. I may be doubtless confused in my look ahead and may
mistake the bearings of the true pathway over the mountain ; but
the general trend of the course 1 think has been truly indicated.
In some such direction lies the way out. As we push on we shall
correct whatever mistakes we may have made in looking ahead.
Let us then push on with a mighty will and an unfaltering assurance
that there is some pathway over the glaciers and precipices into the
sunny fields of the promised land.
Not in vain, O Humanity, hast thou cherished through long
ages of darkness this high hope of a good time coming ! Not in
63
vain hast thou heroically toiled onward, as toward some better
country, through blinding mists, against chilling winds, over flinty
pathways where every step has been a wound ! Not in vain have thy
prophet-sons climbed ever and anon some projecting summit, and,
with eyes lighted up with the vision of the land beyond, sung down
to thee their strains of joyous reassurance! Sure instinct of the
human heart — the day is coming when its purpose shall be vindi-
cated ; as over the desolate mountains the weary hosts of earth’s
toilers descend and find themselves amid the vineyards and the olive
groves of the land of peace and plenty.
Behold the seal of this hope, the sacrament of this faith in the
memorial of the man who came upon our earth preaching this
gospel : “ The kingdom of heaven is at hand.” The kingdom of
God is to come upon our world — his will is to be done here on
earth as it is done in the heavens. The Holy Communion of the
children of the All-Father is to grow around it the Free Common-
wealth of the human brotherhood — that true Communism of which
we are led to think of in this Whitsuntide ; of which the prophecy
was written in this ancient record : “ and the multitude of them
that believed were of one heart and of one soul : neither said any
of them that aught of the things which he possessed was his own ;
but they had all things in common. Neither was there any among
them that lacked : for as many as were possessors of land or
houses sold them and brought the prices of the things that were
sold and laid them down at the apostles’ feet : and distribution
was made unto every man according as he had need, 2 ’
The Sermons of Rev. R. HEBER
ON
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Early in the fall a volume of essays upon various aspects of
the social problem will be issued by Mr. Newton, covering among
others the following topics ; “ A Bird’s-eye View of the Labor
Question : ” “ The Story of Co-operative Production and Co-opera-
tive Credit in the United States,” “ The Story of Co-operative Dis-
tribution in the United States ; ” “ Old time Guilds and Modern
Commercial Associations ; ” “ Is the State Just to the Workingman ; ”
“ The Religious Aspect of Socialism ; ” “ Communism.” Copies may
be ordered through The Day Star.
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