But although the monopoly of money is one of the most glaring violations of men's natural right to make their own contracts, and one of the most effective—perhapsthemost effective—for enabling a few men to rob everybody else, and for keeping the great body of the people in poverty and servitude, it is not the only one that our government practises, nor the only one that has the same robbery in view.
The so-called taxes or duties, which the government levies upon imports, are a practical violation both of men's natural right of property, and of their natural right to make their own contracts.
A man has the samenaturalright to traffic with another, who lives on the opposite side of the globe, as he has to traffic with his next-door neighbor. And any obstruction, price, or penalty, interposed by the government, to the exercise of that right, is a practical violation of the right itself.
The ten, twenty, or fifty per cent. of a man's property, which is taken from him, for the reason that he purchased it in a foreign country, must be considered eitheras the price he is required to pay for theprivilegeof buying property in that country, or else as a penalty for having exercised hisnatural rightof buying it in that country. Whether it be considered as a price paid for a privilege, or a penalty for having exercised a natural right, it is a violation both of his natural right of property, and of his natural right to make a contract in that country.
In short, it is nothing but downright robbery.
And when a man seeks to avoid this robbery, by evading the government robbers who are lying in wait for him,—that is, the so-called revenue officers,—whom he has as perfect a right to evade, as he has to evade any other robbers, who may be lying in wait for him,—the seizure of his whole property,—instead of the ten, twenty, or fifty per cent. that would otherwise have been taken from him,—is not merely adding so much to the robbery itself, but is adding insult to the robbery. It is punishing a man as a criminal, for simply trying to save his property from robbers.
But it will be said that these taxes or duties are laid to raise revenue for the support of the government.
Be it so, for the sake of the argument. All taxes, levied upon a man's property for the support of government, without his consent, are mere robbery; a violation of his natural right of property. And when a government takes ten, twenty, or fifty per cent. of a man's property, for the reason that he bought it in a foreign country, such taking is as much a violation of his natural right of property, or of his natural right to purchase property, as is the taking of property which he has himself produced, or which he has bought in his own village.
A man's natural right of property, in a commodity he has bought in a foreign country, is intrinsically as sacred and inviolable as it is in a commodity produced at home. The foreign commodity is bought with the commodity produced at home; and therefore stands on the same footing as the commodity produced at home. And it is a plain violation of one's right, for a government to make any distinction between them.
Government assumes to exist for the impartial protection of all rights of property. If it really exists for that purpose, it is plainly bound to make each kind of property pay its proper proportion, and only its proper proportion, of the cost of protecting all kinds. To levy upon a few kinds the cost of protecting all, is a naked robbery of the holders of those few kinds, for the benefit of the holders of all other kinds.
But the pretence that heavy taxes are levied upon imports, solely, or mainly, for the support of government, while light taxes, or no taxes at all, are levied upon property at home, is an utterly false pretence. They are levied upon the imported commodity, mainly, if not solely, for the purpose of enabling the producers of competing home commodities to extort from consumers a higher price than the home commodities would bring in free and open market. And this additionalprice is sheer robbery, and is known to be so. And the amount of this robbery—which goes into the pockets of the home producers—is five, ten, twenty, or fifty times greater than the amount that goes into the treasury, for the support of the government, according as the amount of the home commodities is five, ten, twenty, or fifty times greater than the amount of the imported competing commodities.
Thus the amounts that go to the support of the government, and also the amounts that go into the pockets of the home producers, in the higher prices they get for their goods, are all sheer robberies; and nothing else.
But it will be said that the heavy taxes are levied upon the foreign commodity, not to put great wealth into a few pockets, but "to protect the home laborer against the competition of the pauper labor of other countries."
This is the great argument that is relied on to justify the robbery.
This argument must have originated with the employers of home labor, and not with the home laborers themselves.
The home laborers themselves could never have originated it, because they must have seen that, so far as they were concerned, the object of the "protection," so-called, was,at best, only to benefit them, by robbing others who were as poor as themselves, and who had as good a right as themselves to live by their labor. That is, they must have seen that the object of the "protection" was to rob the foreign laborers, in whole, or in part, of the pittances on which they were already necessitated to live; and, secondly, to rob consumers at home,—in the increased prices of the protected commodities,—when many or most of these home consumers were also laborers as poor as themselves.
Even if any class of laborers would have been so selfish and dishonest as to wish to thus benefit themselves by injuring others, as poor as themselves, they could have had no hope of carrying through such a scheme, if they alone were to profit by it; because they could have had no such influence with governments, as would be necessary to enable them to carry it through, in opposition to the rights and interests of consumers, both rich and poor, and much more numerous than themselves.
For these reasons it is plain that the argument originated with the employers of home labor, and not with the home laborers themselves.
And why do the employers of home labor advocate this robbery? Certainly not because they have such an intense compassion for their own laborers, that they are willing to rob everybody else, rich and poor, for their benefit. Nobody will suspect them of being influenced by any such compassion as that. But they advocate it solely because they put into their own pockets a very large portion certainly—probably three-fourths, I should judge—of the increased prices their commodities are thus made to bring in the market. The home laborers themselves probably get not more than one-fourth of these increased prices.
Thus the argument for "protection" is really an argument for robbing foreignlaborers—as poor as our own—of their equal and rightful chances in our markets; and also for robbing all the home consumers of the protected article—the poor as well as the rich—in the prices they are made to pay for it. And all this is done at the instigation, and principally for the benefit, of the employers of home labor, and not for the benefit of home laborers themselves.
Having now seen that this argument—of "protecting our home laborers against the competition of the pauper labor of other countries"—is, of itself, an utterly dishonest argument; that it is dishonest towards foreign laborers and home consumers; that it must have originated with the employers of home labor, and not with the home laborers themselves; and that the employers of home labor, and not the home laborers themselves, are to receive the principal profits of the robbery, let us now see how utterly false is the argument itself.
1. The pauper laborers (if there are any such) of other countries have just as good a right to live by their labor, and have an equal chance in our own markets, and in all the markets of the world, as have the pauper laborers, or any other laborers, of our own country.
Every human being has the same natural right to buy and sell, of and to, any and all other people in the world, as he has to buy and sell, of and to, the people of his own country. And none but tyrants and robbers deny that right. And they deny it for their own benefit solely, and not for the benefit of their laborers.
And if a man, in our own country—either from motives of profit to himself, or from motives of pity towards the pauper laborers of other countries—choosesto buy the products of the foreign pauper labor, rather than the products of the laborers of his own country, he has a perfect legal right to do so. And for any government to forbid him to do so, or to obstruct his doing so, or to punish him for doing so, is a violation of his natural right of purchasing property of whom he pleases, and from such motives as he pleases.
2. To forbid our own people to buy in the best markets, is equivalent to forbidding them to sell the products of their own labor in the best markets; for they can buy the products of foreign labor, only by giving the products of their own labor in exchange. Therefore to deny our right to buy in foreign markets, is to forbid us to sell in foreign markets. And this is a plain violation of men's natural rights.
If, when a producer of cotton, tobacco, grain, beef, pork, butter, cheese, or any other commodity, in our own country, has carried it abroad, and exchanged it for iron or woolen goods, and has brought these latter home, the government seizes one-half of them, because they were manufactured abroad, the robbery committed upon the owner is the same as if the government had seized one-half of his cotton, tobacco, or other commodity, before he exported it; because the iron or woolen goods, which he purchased abroad with the products of his own home labor, are as much his own property, as was the commodity with which he purchased them.
Therefore the tax laid upon foreign commodities, that have been bought with the products of our home labor, is as much a robbery of the home laborer, as the same tax would have been, if laid directly upon the products of our home labor. It is, at best, only a robbery of one home laborer—the producer of cotton, tobacco, grain, beef, pork, butter, or cheese—for the benefit of another home laborer—the producer of iron or woolen goods.
3. But this whole argument is a false one, for the further reason that our home laborers do not have to compete with "the pauper labor" of any country on earth; since theactual paupersof no country on earth are engaged in producing commodities for export to any other country. They produce few, or no, other commodities than those they themselves consume; and ordinarily not even those.
There are a great many millions ofactual paupersin the world. In some of the large provinces of British India, for example, it is said that nearly half the population are paupers. But I think that the commodities they are producing for export to other countries than their own, have never been heard of.
The term, "pauper labor," is therefore a false one. And when these robbers—the employers of home labor—talk of protecting their laborers against the competition of "the pauper labor" of other countries, they do not mean that they are protecting them against the competition ofactual paupers; but only against the competition of that immense body of laborers, in all parts of the world,who are kept constantly on the verge of pauperism, or starvation; who have little, or no, means of subsistence, except such as their employers see fit to give them,—which means are usually barely enough to keep them in a condition to labor.
These are the only "pauper laborers," from whose competition our own laborers are sought to be protected. They are quite as badly off as our own laborers; and are in equal need of "protection."
What, then, is to be done? This policy of excluding foreign commodities from our markets, is a game that all other governments can play at, as well as our own. And if it is the duty of our government to "protect" our laborers against the competition of "the pauper labor," so-called, of all other countries, it is equally the duty of every other government to "protect" its laborers against the competition of the so-called "pauper labor" of all other countries. So that, according to this theory, each nation must either shut out entirely from its markets the products of all other countries; or, at least, lay such heavy duties upon them, as will,in some measure, "protect" its own laborers from the competition of the "pauper labor" of all other countries.
This theory, then, is that, instead of permitting all mankind to supply each other's wants, by freely exchanging their respective products with each other, the government of each nation should rob the people of every other, by imposing heavy duties upon all commodities imported from them.
The natural effect of this scheme is to pit the so-called "pauper labor" of eachcountry against the so-called "pauper labor" of every other country; and all for the benefit of their employers. And as it holds that so-called "pauper labor" is cheaper than free labor, it gives the employers in each country a constant motive for reducing their own laborers to the lowest condition of poverty, consistent with their ability to labor at all. In other words, the theory is, that the smaller the portion of the products of labor, that is given to the laborers, the larger will be the portion that will go into the pockets of the employers.
Now, it is not a very honorable proceeding for any government to pit its own so-called "pauper laborers"—or laborers that are on the verge of pauperism—against similar laborers in all other countries: and all for the sake of putting the principal proceeds of their labor into the pockets of a few employers.
To set two bodies of "pauper laborers"—or of laborers on the verge of pauperism—to robbing each other, for the profit of their employers, is the next thing, in point of atrocity, to setting them to killing each other, as governments have heretofore been in the habit of doing, for the benefit of their rulers.
The laborers, who are paupers, or on the verge of pauperism—who are destitute, or on the verge of destitution—comprise (with their families) doubtless nine-tenths, probably nineteen-twentieths, of all the people on the globe. They are not all wage laborers. Some of them are savages, living only as savages do. Others are barbarians, living only as barbarians do. But an immense number are mere wage laborers. Much the larger portion of these have been reduced to the condition of wage laborers, by the monopoly of land, which mere bands of robbers have succeeded in securing for themselves by military power. This is the condition of nearly all the Asiatics, and of probably one-half the Europeans. But in those portions of Europe and the United States, where manufactures have been most extensively introduced, and where, by science and machinery, great wealth has been created, the laborers have been kept in the condition of wage laborers, principally, if not wholly, by the monopoly of money. This monopoly, established in all these manufacturing countries, has made it impossible for the manufacturing laborers to hire the money capital that was necessary to enable them to do business for themselves; and has consequently compelled them to sell their labor to the monopolists of money, for just such prices as these latter should choose to give.
It is, then, by the monopoly of land, and the monopoly of money, that more than a thousand millions of the earth's inhabitants—as savages, barbarians, and wage laborers—are kept in a state of destitution, or on the verge of destitution. Hundreds of millions of them are receiving, for their labor, not more than three, five, or, at most, ten cents a day.
In western Europe, and in the United States, where, within the last hundred and fifty years, machinery has been introduced, and where alone any considerable wealth is now created, the wage laborers, although they get so small a portion of the wealth they create, are nevertheless in a vastly better condition than are the laboring classes in other parts of the world.
If, now, the employers of wage labor, in this country,—who are also the monopolists of money,—and who are ostensibly so distressed lest their own wage laborers should suffer from the competition of the pauper labor of other countries,—have really any of that humanity, of which they make such profession, they have before them a much wider field for the display of it, than they seem to desire. That is to say, they have it in their power, not only to elevate immensely the condition of the laboring classes in this country, but also to set an example that will be very rapidly followed in all other countries; and the result will be the elevation of all oppressed laborers throughout the world. This they can do, by simply abolishing the monopoly of money. The real producers of wealth, with few or no exceptions, will then be able to hire all the capital they need for their industries, and will do business for themselves. They will also be able to hire their capital at very low rates of interest; and will then put into their own pockets all the proceeds of their labor, except what they pay as interest on their capital. And this amount will be too small to obstruct materially their rise to independence and wealth.
But will the monopolists of money give up their monopoly? Certainly not voluntarily. They will do it only upon compulsion. They will hold on to it as long as they own and control governments as they do now. And why will they do so? Because to give up their monopoly would be to give up their control of those great armies of servants—the wage laborers—from whom all their wealth is derived, and whom they can now coerce by the alternative of starvation, to labor for them at just such prices as they (the monopolists of money) shall choose to pay.
Now these monopolists of money have no plans whatever for making their "capital," as they call it—that is, their money capital—their privileged money capital—profitable to themselves,otherwise than by using it to employ other men's labor. And they can keep control of other men's labor only by depriving the laborers themselves of all other means of subsistence. And they can deprive them of all other means of subsistence only by putting it out of their power to hire the money that is necessary to enable them to do business for themselves. And they can put it out of their power to hire money, only by forbidding all other men to lend them their credit, in the shape of promissory notes, to be circulated as money.
If the twenty-five or fifty thousand millions of loanable capital—promissory notes—which,in this country, are now lying idle, were permitted to be loaned, these wage laborers would hire it, and do business for themselves, instead of laboring as servants for others; and would of course retain in their own hands all the wealth they should create, except what they should pay as interest for their capital.
And what is true of this country, is true of every other where civilization exists; for wherever civilization exists, land has value, and can be used as banking capital,and be made to furnish all the money that is necessary to enable the producers of wealth to hire the capital necessary for their industries, and thus relieve them from their present servitude to the few holders of privileged money.
Thus it is that the monopoly of money is the one great obstacle to the liberation of the laboring classes all over the world, and to their indefinite progress in wealth.
But we are now to show, more definitely, what relation this monopoly of money is made to bear to the freedom of international trade; and why it is that the holders of this monopoly,in this country, demand heavy tariffs on imports, on the lying pretence of protecting our home labor against the competition of the so-called pauper labor of other countries.
The explanation of the whole matter is as follows.
1. The holders of the monopoly of money, in each country,—more especially in the manufacturing countries like England, the United States, and some others,—assume that the present condition of poverty, for the great mass of mankind, all over the world, is to be perpetuated forever; or at least for an indefinite period. From this assumption they infer that, if free trade between all countries is to be allowed, the so-called pauper labor of each country is to be forever pitted against the so-called pauper labor of every other country. Hence they infer that it is the duty of each government—or certainly of our government—to protect the so-called pauper labor of our own country—that is, the class of laborers who are constantly on the verge of pauperism—against the competition of the so-called pauper labor of all other countries, by such duties on imports as will secure to our own laborers a monopoly of our own home market.
This is, on the face of it, the most plausible argument—and almost, if not really, the only argument—by which they now attempt to sustain their restrictions upon international trade.
If this argument is a false one, their whole case falls to the ground. That it is a false one, will be shown hereafter.
2. These monopolists of money assume that pauper labor, so-called, is the cheapest labor in the world; and that therefore each nation, in order to compete with the pauper labor of all other nations, must itself have "cheap labor." In fact, "cheap labor" is, with them, the greatsine qua nonof all national industry. To compete with "cheap labor," say they, we must have "cheap labor." This is, with them, a self-evident proposition. And this demand for "cheap labor" means, of course, that the laboring classes, in this country, must be kept, as nearly as possible, on a level with the so-called pauper labor of all other countries.
Thus their whole scheme of national industry is made to depend upon "cheap labor." And to secure "cheap labor," they hold it to be indispensable that the laborers shall be kept constantly either in actual pauperism, or on the verge of pauperism. And, in this country, they know of no way of keeping the laborers on theverge of pauperism, but by retaining in their (the monopolists') own hands such a monopoly of money as will put it out of the power of the laborers to hire money, and do business for themselves; and thus compel them, by the alternative of starvation, to sell their labor to the monopolists of money at such prices as will enable them (the monopolists) to manufacture goods in competition with the so-called pauper laborers of all other countries.
Let it be repeated—as a vital proposition—that the whole industrial programme of these monopolists rests upon, and implies, such a degree of poverty, on the part of the laboring classes, as will put their labor in direct competition with the so-called pauper labor of all other countries. So long as they (the monopolists) can perpetuate this extreme poverty of the laboring classes, in this country, they feel safe against all foreign competition; for, in all other things than "cheap labor," we have advantages equal to those of any other nation.
Furthermore, this extreme poverty, in which the laborers are to be kept, necessarily implies that they are to receive no larger share of the proceeds of their own labor, than is necessary to keep them in a condition to labor. It implies that their industry—which is really the national industry—is not to be carried on at all for their own benefit, but only for the benefit of their employers, the monopolists of money. It implies that the laborers are to be mere tools and machines in the hands of their employers; that they are to be kept simply in running order, like other machinery; but that, beyond this, they are to have no more rights, and no more interests, in the products of their labor, than have the wheels, spindles, and other machinery, with which the work is done.
In short, this whole programme implies that the laborers—the real producers of wealth—are not to be considered at all as human beings, having rights and interests of their own; but only as tools and machines, to be owned, used, and consumed in producing such wealth as their employers—the monopolists of money—may desire for their own subsistence and pleasure.
What, then, is the remedy? Plainly it is to abolish the monopoly of money. Liberate all this loanable capital—promissory notes—that is now lying idle, and we liberate all labor, and furnish to all laborers all the capital they need for their industries. We shall then have no longer, all over the earth, the competition of pauper labor with pauper labor, but only the competition of free labor with free labor. And from this competition of free labor with free labor, no people on earth have anything to fear, but all peoples have everything to hope.
And why have all peoples everything to hope from the competition of free labor with free labor? Because when every human being, who labors at all, has, as nearly as possible, all the fruits of his labor, and all the capital that is necessary to make his labor most effective, he has all needed inducements to the best use of both his brains and his muscles, his head and his hands. He applies both his head and his hands to his work. He not only acquires, as far as possible, for his own use, all thescientific discoveries and mechanical inventions, that are made by others, but he himself makes scientific discoveries and mechanical inventions. He thus multiplies indefinitely his powers of production. And the more each one produces of his own particular commodity, the more he can buy of every other man's products, and the more he can pay for them.
With freedom in money, the scientific discoveries and mechanical inventions, made in each country, will not only be used to the utmost in that country, but will be carried into all other countries. And these discoveries and inventions, given by each country to every other, and received by each country from every other, will be of infinitely more value than all the material commodities that will be exchanged between these countries.
In this way each country contributes to the wealth of every other, and the whole human race are enriched by the increased power and stimulus given to each man's labor of body and mind.
But it is to be kept constantly in mind, that there can be no such thing as free labor, unless there be freedom in money; that is, unless everybody, who can furnish money, shall be at liberty to do so. Plainly labor cannot be free, unless the laborers are free to hire all the money capital that is necessary for their industries. And they cannot be free to hire all this money capital, unless all who can lend it to them, shall be at liberty to do so.
In short, labor cannot be free, unless each laborer is free to hire all the capital—money capital, as well as all other capital—that he honestly can hire; free to buy, wherever he can buy, all the raw material he needs for his labor; and free to sell, wherever he can sell, all the products of his labor. Therefore labor cannot be free, unless we have freedom in money, and free trade with all mankind.
We can now understand the situation. In the most civilized nations—such as Western Europe and the United States—labor is utterly crippled, robbed, and enslaved by the monopoly of money; and also, in some of these countries, by the monopoly of land. In nearly or quite all the other countries of the world, labor is not only robbed and enslaved, but to a great extent paralyzed, by the monopoly of land, and by what may properly be called the utter absence of money. There is, consequently, in these latter countries, almost literally, no diversity of industry, no science, no skill, no invention, no machinery, no manufactures, no production, and no wealth; but everywhere miserable poverty, ignorance, servitude, and wretchedness.
In this country, and in Western Europe, where the uses of money are known, there is no excuse to be offered for the monopoly of money. It is maintained, in each of these countries, by a small knot of tyrants and robbers, who have got control of the governments, and use their power principally to maintain this monopoly; understanding, as they do, that this one monopoly of money gives them a substantially absolute control of all other men's property and labor.
But not satisfied with this substantially absolute control of all other men's propertyand labor, the monopolists of money,in this country,—feigning great pity for their laborers, but really seeking only to make their monopoly more profitable to themselves,—cry out for protection against the competition of the pauper labor of all other countries; when they alone,and such as they, are the direct cause of all the pauper labor in the world. But for them, and others like them, there would be neither poverty, ignorance, nor servitude on the face of the earth.
But to all that has now been said, the advocates of the monopoly of money will say that, if all the material property of the country were permitted to be represented by promissory notes, and these promissory notes were permitted to be lent, bought, and sold as money, the laborers would not be able to hire them, for the reason that they could not give the necessary security for repayment.
But let those who would say this, tell us why it is that, in order to prevent men from loaning their promissory notes, for circulation as money, it has always been necessary for governments to prohibit it, either by penal enactments, or prohibitory taxation. These penal enactments and prohibitory taxation are acknowledgments that, but for them, the notes would be loaned to any extent that would be profitable to the lenders. What this extent would be, nothing but experience of freedom can determine. But freedom would doubtless give us ten, twenty, most likely fifty, times as much money as we have now, if so much could be kept in circulation. And laborers would at least have ten, twenty, or fifty times better chances for hiring capital, than they have now. And, furthermore, all labor and property would have ten, twenty, or fifty times better chances of bringing their full value in the market, than they have now.
But in the space that is allowable in this letter, it is impossible to say all, or nearly all, of what might be said, to show the justice, the utility, or the necessity, for perfect freedom in the matters of money and international trade. To pursue these topics further would exclude other matters of great importance, as showing how the government acts the part of robber and tyrant in all its legislation on contracts; and that the whole purpose of all its acts is that the earnings of the many may be put into the pockets of the few.
Although, as has already been said, the constitution is a paper that nobody ever signed, that few persons have ever read, and that the great body of the people never saw; and that has, consequently, no more claim to be the supreme law of the land, or to have any authority whatever, than has any other paper, that nobody ever signed, that few persons ever read, and that the great body of the people never saw; and although it purports to authorize a government, in which the lawmakers, judges, and executive officers are all to be secured against any responsibility whateverto the people, whose liberty and rights are at stake; and althoughthis government is kept in operation only by votes given in secret (by secret ballot), and in a way to save the voters from all personal responsibility for the acts of their agents—the lawmakers, judges, etc.; and although the whole affair is so audacious a fraud and usurpation, that no people could be expected to agree to it, or ought to submit to it, for a moment; yet, inasmuch as the constitution declares itself to have been ordained and established by the people of the United States, for the maintenance of liberty and justice for themselves and their posterity; and inasmuch as all its supporters—that is, the voters, lawmakers, judges, etc.—profess to derive all their authority from it; and inasmuch as all lawmakers, and all judicial and executive officers, both national and State, swear to support it; and inasmuch as they claim the right to kill, and are evidently determined to kill, and esteem it the highest glory to kill, all who do not submit to its authority; we might reasonably expect that, from motives of common decency, if from no other, those who profess to administer it, would pay some deference to its commands,at least in those particular cases where it explicitly forbids any violation of the natural rights of the people.
Especially might we expect that the judiciary—whose courts claim to be courts of justice—and who profess to be authorized and sworn to expose and condemn all such violations of individual rights as the constitution itself expressly forbids—would, in spite of all their official dependence on, and responsibility to, the lawmakers, have sufficient respect for their personal characters, and the opinions of the world, to induce them to pay some regard to all those parts of the constitution that expressly require any rights of the people to be held inviolable.
If the judicial tribunals cannot be expected to do justice, even in those cases where the constitution expressly commands them to do it, and where they have solemnly sworn to do it, it is plain that they have sunk to the lowest depths of servility and corruption, and can be expected to do nothing but serve the purposes of robbers and tyrants.
But how futile have been all expectations of justice from the judiciary, may be seen in the conduct of the courts—and especially in that of the so-called Supreme Court of the United States—in regard to men's natural right to make their own contracts.
Although the State lawmakers have, more frequently than the national lawmakers, made laws in violation of men's natural right to make their own contracts, yet all laws, State and national, having for their object the destruction of that right, have always, without a single exception, I think, received the sanction of the Supreme Court of the United States. And having been sanctioned by that court, they have been, as a matter of course, sanctioned by all the other courts, State and national. And this work has gone on, until, if these courts are to be believed, nothing at all is left of men's natural right to make their own contracts.
That such is the truth, I now propose to prove.
And, first, as to the State governments.
The constitution of the United States (Art. 1, Sec. 10) declares that:
No State shall pass any law impairing the obligation of contracts.
No State shall pass any law impairing the obligation of contracts.
This provision does not designate what contracts have, and what have not, an "obligation." But it clearly presupposes, implies, assumes, and asserts that there are contracts thathavean "obligation." Any State law, therefore, which declares that such contracts shall haveno obligation, is plainly in conflict with this provision of the constitution of the United States.
This provision, also, by implying that therearecontracts, thathavean "obligation,"necessarily implies that men have a right to enter into them; for if men had no right to enter into the contracts, the contracts themselves could have no "obligation."
This provision, then, of the constitution of the United States, not only implies that there are contracts thathavean obligation,but it also implies that the people have the right to enter into all such contracts, and have the benefit of them. And "any" State "law," conflicting with either of these implications, is necessarily unconstitutional and void.
Furthermore, the language of this provision of the constitution, to wit, "the obligation [singular] of contracts" [plural], impliesthat there is one and the same "obligation" to all "contracts" whatsoever, that have any legal obligation at all. And there obviously must be some one principle, that gives validity to all contracts alike, that have any validity.
The law, then, of this whole country, as established by the constitution of the United States, is, that all contracts whatsoever, in which this one principle of validity, or "obligation," is found, shall be held valid; and that the States shall impose no restraint whatever upon the people's entering into all such contracts.
All, therefore, that courts have to do, in order to determine whether any particular contract, or class of contracts, are valid, andwhether the people have a right to enter into them, is simply to determine whether the contracts themselves have, or have not, this one principle of validity, or "obligation," which the constitution of the United States declares shall not be impaired.
State legislation can obviously have nothing to do with the solution of this question. It can neither create, nor destroy, that "obligation of contracts," which the constitution forbids it to impair. It can neither give, nor take away, the right to enter into any contract whatever, that has that "obligation."
On the supposition, then, that the constitution of the United States is, what it declares itself to be,viz., "the supreme law of the land, ... anything in the constitutions or laws of the States to the contrary notwithstanding," this provision against "any" State "law impairing the obligation of contracts," is so explicit, and so authoritative, that the legislatures and courts of the States have no color of authorityfor violating it. And the Supreme Court of the United States has had no color of authority or justification for suffering it to be violated.
This provision is certainly one of the most important—perhaps the most important—of all the provisions of the constitution of the United States,as protective of the natural rights of the people to make their own contracts, or provide for their own welfare.
Yet it has been constantly trampled under foot, by the State legislatures, by all manner of laws, declaring who may, and who may not, make certain contracts; and what shall, and what shall not, be "the obligation" of particular contracts; thus setting at defiance all ideas of justice, of natural rights, and equal rights; conferring monopolies and privileges upon particular individuals, and imposing the most arbitrary and destructive restraints and penalties upon others; all with a view of putting, as far as possible, all wealth into the hands of the few, and imposing poverty and servitude upon the great body of the people.
And yet all these enormities have gone on for nearly a hundred years, and have been sanctioned, not only by all the State courts, but also by the Supreme Court of the United States.
And what color of excuse have any of these courts offered for thus upholding all these violations of justice, of men's natural rights, and even of that constitution which they had all sworn to support?
They have offered only this:They have all said they did not know what "the obligation of contracts" was!
Well, suppose, for the sake of the argument, that they have not known what "the obligation of contracts" was, what, then, was their duty? Plainly this, to neither enforce, nor annul, any contract whatever, until they should have discovered what "the obligation of contracts" was.
Clearly they could have no right to either enforce, or annul, any contract whatever, until they should have ascertained whether it had any "obligation," and, if any, what that "obligation" was.
If these courts really do not know—as perhaps they do not—what "the obligation of contracts" is, they deserve nothing but contempt for their ignorance. If theydoknow what "the obligation of contracts" is, and yet sanction the almost literally innumerable laws that violate it, they deserve nothing but detestation for their villainy.
And until they shall suspend all their judgments for either enforcing, or annulling, contracts, or, on the other hand, shall ascertain what "the obligation of contracts" is, and sweep away all State laws that impair it, they will deserve both contempt for their ignorance, and detestation for their crimes.
Individual Justices of the Supreme Court of the United States have, at least in one instance, in 1827 (Ogden vs. Saunders, 12 Wheaton 213), attempted to give a definition of "the obligation of contracts." But there was great disagreementamong them; and no one definition secured the assent of the whole court,or even of a majority. Since then, so far as I know, that court has never attempted to give a definition. And, so far as the opinion of that court is concerned, the question is as unsettled now, as it was sixty years ago. And the opinions of the Supreme Courts of the States are equally unsettled with those of the Supreme Court of the United States. The consequence is, that "the obligation of contracts"—the principle on which the real validity, or invalidity, of all contracts whatsoever depends—is practically unknown, or at least unrecognized, by a single court, either of the States, or of the United States. And, as a result, every species of absurd, corrupt, and robber legislation goes on unrestrained, as it always has done.
What, now, is the reason why not one of these courts has ever so far given its attention to the subject as to have discovered what "the obligation of contracts" is? What that principle is, I repeat, which they have all sworn to sustain, and on which the real validity, or invalidity, of every contract on which they ever adjudicate, depends? Why is it that they have all gone on sanctioning and enforcing all the nakedly iniquitous laws, by which men's natural right to make their own contracts has been trampled under foot?
Surely it is not because they do not know that all men have a natural right to make their own contracts; for they knowthat, as well as they know that all men have a natural right to live, to breathe, to move, to speak, to hear, to see, or to do anything whatever for the support of their lives, or the promotion of their happiness.
Why, then, is it, that they strike down this right, without ceremony, and without compunction, whenever they are commanded to do so by the lawmakers? It is because, and solely because, they are so servile, slavish, degraded, and corrupt, as to act habitually on the principle, that justice and men's natural rights are matters of no importance, in comparison with the commands of the impudent and tyrannical lawmakers, on whom they are dependent for their offices and their salaries. It is because, and solely because, they, like the judges under all other irresponsible and tyrannical governments, are part and parcel of a conspiracy for robbing and enslaving the great body of the people, to gratify the luxury and pride of a few. It is because, and solely because, they do not recognize our governments, State or national, as institutions designed simply to maintain justice, or to protect all men in the enjoyment of all their natural rights; but only as institutions designed to accomplish such objects as irresponsible cabals of lawmakers may agree upon.
In proof of all this, I give the following.
Previous to 1824, two cases had come up from the State courts, to the Supreme Court of the United States, involving the question whether a State law,invalidating some particular contract, came within the constitutional prohibition of "any law impairing the obligation of contracts."
One of these cases was that ofFletcher vs. Peck, (6Cranch87), in the year 1810. In this case the court held simply that a grant of land, once made by the legislature of Georgia, could not be rescinded by a subsequent legislature.
But no general definition of "the obligation of contracts" was given.
Again, in the year 1819, in the case ofDartmouth College vs. Woodward(4Wheaton518), the court held that a charter, granted to Dartmouth College, by the king of England, before the Revolution, was a contract; and that a law of New Hampshire, annulling, or materially altering, the charter, without the consent of the trustees, was a "law impairing the obligation" ofthatcontract.
But, in this case, as in that ofFletcher vs. Peck, the court gave no general definition of "the obligation of contracts."
But in the year 1824, and again in 1827, in the case ofOgden vs. Saunders(12Wheaton213) the question was, whether an insolvent law of the State of New York, which discharged a debtor from a debt,contracted after the passage of the law, or, as the courts would say, "contracted under the law"—on his giving up his property to be distributed among his creditors—was a "law impairing the obligation of contracts?"
To the correct decision of this case, it seemed indispensable that the court should give a comprehensive, precise, anduniversaldefinition of "the obligation of contracts"; one by which it might forever after be known what was, and what was not, that "obligation of contracts," which the State governments were forbidden to "impair" by "any law" whatever.
The cause was heard at two terms, that of 1824, and that of 1827.
It was argued by Webster, Wheaton, Wirt, Clay, Livingston, Ogden, Jones, Sampson, and Haines; nine in all. Their arguments were so voluminous that they could not be reported at length. Only summaries of them are given. But these summaries occupy thirty-eight pages in the reports.
The judges, at that time, were seven,viz., Marshall, Washington, Johnson, Duvall, Story, Thompson, and Trimble.
The judges gave five different opinions; occupying one hundred pages of the reports.
But no one definition of "the obligation of contracts" could be agreed on;not even by a majority.
Here, then, sixteen lawyers and judges—many of them among the most eminent the country has ever had—were called upon to give their opinions upon a question of the highest importance to all men's natural rights, to all the interests of civilized society, and to the very existence of civilization itself; a question, upon the answer to which depended the real validity, or invalidity, of every contract that ever was made, or ever will be made, between man and man. And yet, by their disagreements, they all virtually acknowledged that they did not know what "the obligation of contracts" was!
But this was not all. Although they could not agree as to what "the obligation of contracts" was, they did all agree that it could be nothing which the State lawmakers could not prohibit and abolish,by laws passed before the contracts were made. That is to say, they all agreed that the State lawmakers had absolute power to prohibit all contracts whatsoever, for buying and selling, borrowing and lending, giving and receiving, property; and that, whenever they did prohibit any particular contract, or class of contracts,all such contracts, thereafter made, could have no "obligation"!
They said this, be it noted, not of contracts that were naturally and intrinsically criminal and void, but of contracts that were naturally and intrinsically as just, and lawful, and useful, and necessary, as any that men ever enter into; and that had as perfect a natural, intrinsic, inherent "obligation," as any of those contracts, by which the traffic of society is carried on, or by which men ever buy and sell, borrow and lend, give and receive, property, of and to each other.
Not one of these sixteen lawyers and judges took the ground that the constitution, in forbidding any State to "pass any law impairing the obligation of contracts," intended to protect, against the arbitrary legislation of the States, the only true, real, and natural "obligation of contracts," or the right of the people to enter into all really just, and naturally obligatory contracts.
Is it possible to conceive of a more shameful exhibition, or confession, of the servility, the baseness, or the utter degradation, of both bar and bench, than their refusal to say one word in favor of justice, liberty, men's natural rights, or the natural, and only real, "obligation" of their contracts?
And yet, from that day to this—a period of sixty years, save one—neither bar nor bench, so far as I know, have ever uttered one syllable in vindication of men's natural right to make their own contracts, or to have the only true, real, natural, inherent, intrinsic "obligation" of their contracts respected by lawmakers or courts.
Can any further proof be needed that all ideas of justice and men's natural rights are absolutely banished from the minds of lawmakers, and from so-called courts of justice? Or that absolute and irresponsible lawmaking has usurped their place?
Or can any further proof be needed, of the utter worthlessness of all the constitutions, which these lawmakers and judges swear to support, and profess to be governed by?
If, now, it be asked, what is this constitutional "obligation of contracts," which the States are forbidden to impair, the answer is, that it is, and necessarily must be, thenaturalobligation; or that obligation, which contracts have, on principlesof natural law, and natural justice, as distinguished from any arbitrary or unjust obligation, which lawmakers may assume to create, and attach to contracts.
This natural obligation is the onlyone"obligation" whichallobligatory contracts can be said to have. It is the onlyinherent"obligation," that any contract can be said to have. It is recognized all over the world—at least as far as it is known—as the one onlytrueobligation, that any, or all, contracts can have. And, so far as it is known—it is held valid all over the world, except in those exceptional cases, where arbitrary and tyrannical governments have assumed to annul it, or substitute some other in its stead.
The constitution assumes that thisone"obligation of contracts," which it designs to protect, is the natural one, because it assumes that it existed,and was known, at the time the constitution itself was established; and certainly noone"obligation,"other than the natural one, can be said to have been known, as applicable to all obligatory contracts, at the time the constitution was established. Unless, therefore, the constitution be presumed to have intended the natural "obligation," it cannot be said to have intended anyone"obligation" whatever; or, consequently, to have forbidden the violation of anyone"obligation" whatever.
It cannot be said that "the obligation," which the constitution designed to protect was any arbitrary "obligation," that was unknown at the time the constitution was established, but that was to be created, and made known afterward; for then this provision of the constitution could have had no effect, until such arbitrary "obligation" should have been created, and made known. And as it gives us no information as to how, or by whom, this arbitrary "obligation" was to be created, or what the obligation itself was to be, or how it could ever be known to be the one that was intended to be protected, the provision itself becomes a mere nullity, having no effect to protect any "obligation" at all.
It would be a manifest and utter absurdity to say that the constitution intended to protect any "obligation" whatever, unless it be presumed to have intended some particular "obligation,"that was known at the time; for that would be equivalent to saying that the constitution intended to establish a law, of which no man could know the meaning.
But this is not all.
The right of property is a natural right. The only real right of property, that is known to mankind, is the natural right. Men have also a natural right to convey their natural rights of property from one person to another. And there is no means known to mankind, by which thisnaturalright of property can be transferred, or conveyed, by one man to another, except by such contracts as arenaturallyobligatory; that is, naturally capable of conveying and binding the right of property.
All contracts whatsoever, that are naturally capable, competent, and sufficient to convey, transfer, and bind the natural right of property, are naturally obligatory;and really and truly do convey, transfer, and bind such rights of property as they purport to convey, transfer, and bind.
All the other modes, by which one man has ever attempted to acquire the property of another, have been thefts, robberies, and frauds. But these, of course, have never conveyed any real rights of property.
To make any contract binding, obligatory, and effectual for conveying and transferring rights of property, these three conditions only are essential,viz., 1. That it be entered into by parties, who are mentally competent to make reasonable contracts. 2. That the contract be a purely voluntary one: that is, that it be entered into without either force or fraud on either side. 3. That the right of property, which the contract purports to convey, be such an one as is naturally capable of being conveyed, or transferred, by one man to another.
Subject to these conditions, all contracts whatsoever, for conveying rights of property—that is, for buying and selling, borrowing and lending, giving and receiving property—are naturally obligatory, and bind such rights of property as they purport to convey.
Subject to these conditions, all contracts, for the conveyance of rights of property, are recognized as valid, all over the world, by both civilized and savage man, except in those particular cases where governments arbitrarily and tyrannically prohibit, alter, or invalidate them.
Thisnatural"obligation of contracts" must necessarily be presumed to be the one, and the only one, which the constitution forbids to be impaired, by any State law whatever, if we are to presume that the constitution was intended for the maintenance of justice, or men's natural rights.
On the other hand, if the constitution be presumed not to protect thisnatural"obligation of contracts," we know notwhatother "obligation" it did intend to protect. It mentions no other, describes no other, gives us no hint of any other; and nobody can give us the least information as to what other "obligation of contracts" was intended.
It could not have been any "obligation" which theStatelawmakers might arbitrarily create, and annex toallcontracts; for this is what no lawmakers have ever attempted to do. And it would be the height of absurdity to suppose they ever will invent anyone"obligation," and attach it toallcontracts. They have only attempted either to annul, or impair, the natural "obligation" ofparticularcontracts; or,in particular cases, to substitute other "obligations" of their own invention. And this is the most they will ever attempt to do.
Assuming it now to be proved that the "obligation of contracts," which the States are forbidden to "impair," is thenatural"obligation"; and that,constitutionallyspeaking, this provision secures to all the people of the United States the right to enter into, and have the benefit of, all contracts whatsoever, that have thatone natural"obligation," let us look at some of the more important of those State laws that have either impaired that obligation or prohibited the exercise of that right.
1. That law, in all the States, by which any, or all, the contracts of persons, under twenty-one years of age, are either invalidated, or forbidden to be entered into.
The mental capacity of a person to make reasonable contracts, is the only criterion, by which to determine his legal capacity to make obligatory contracts. And his mental capacity to make reasonable contracts is certainly not to be determined by the fact that he is, or is not, twenty-one years of age. There would be just as much sense in saying that it was to be determined by his height or his weight, as there is in saying that it should be determined by his age.
Nearly all persons, male and female, are mentally competent to make reasonable contracts, long before they are twenty-one years of age. And as soon as they are mentally competent to make reasonable contracts, they have the same natural right to make them, that they ever can have. And their contracts have the same natural "obligation" that they ever can have.
If a person's mental capacity to make reasonable contracts be drawn in question, that is a question of fact, to be ascertained by the same tribunal that is to ascertain all the other facts involved in the case. It certainly is not to be determined by any arbitrary legislation, that shall deprive any one of his natural right to make contracts.
2. All the State laws, that do now forbid, or that have heretofore forbidden married women to make any or all contracts, that they are, or were, mentally competent to make reasonably, are violations of their natural right to make their own contracts.
A married woman has the same natural right to acquire and hold property, and to make all contracts that she is mentally competent to make reasonably, as has a married man, or any other man. And any law invalidating her contracts, or forbidding her to enter into contracts, on the ground of her being married, are not only absurd and outrageous in themselves, but are also as plainly violations of that provision of the constitution, which forbids any State to pass any law impairing the natural obligation of contracts, as would be laws invalidating or prohibiting similar contracts by married men.
3. All those State laws, commonly called acts of incorporation, by which a certain number of persons are licensed to contract debts, without having their individual properties held liable to pay them, are laws impairing the natural obligation of their contracts.
On natural principles of law and reason, these persons are simply partners; and their private properties, like those of any other partners, should be held liable fortheir partnership debts. Like any other partners, they take the profits of their business, if there be any profits. And they are naturally bound to take all the risks of their business, as in the case of any other business. For a law to say that, if they make any profits, they may put them all into their own pockets, but that, if they make a loss, they may throw it upon their creditors, is an absurdity and an outrage. Such a law is plainly a law impairing the natural obligation of their contracts.
4. All State insolvent laws, so-called, that distribute a debtor's property equally among his creditors, are laws impairing the natural obligation of his contracts.
If the natural obligation of contracts were known, and recognized as law, we should have no need of insolvent or bankrupt laws.
The only force, function, or effect of alegalcontract is to convey and bind rights of property. A contract that conveys and binds no right of property, has nolegalforce, effect, or obligation whatever.[4]