CHAPTER XXToC

[729]Davidson,Free Tradev.Fettered Transport, p. 9.

[729]Davidson,Free Tradev.Fettered Transport, p. 9.

[730]Ibid.p. 7.

[730]Ibid.p. 7.

[731]Reformers' Year Book, 1907, pp. 119, 120.

[731]Reformers' Year Book, 1907, pp. 119, 120.

[732]Hyndman,Real Reform, p. 14.

[732]Hyndman,Real Reform, p. 14.

[733]Fabianism and the Fiscal Question, p. 17.

[733]Fabianism and the Fiscal Question, p. 17.

[734]Macdonald,Labour and the Empire, p. 96.

[734]Macdonald,Labour and the Empire, p. 96.

[735]Reformers' Year Book, 1907, p. 120.

[735]Reformers' Year Book, 1907, p. 120.

[736]Independent Labour Party Report, Annual Conference, 1907, p. 50.

[736]Independent Labour Party Report, Annual Conference, 1907, p. 50.

[737]Socialism and Labour Policy, p. 14.

[737]Socialism and Labour Policy, p. 14.

[738]Blatchford,Britain for the British, p. 86.

[738]Blatchford,Britain for the British, p. 86.

[739]Sorge,Socialism and the Worker, p. 13.

[739]Sorge,Socialism and the Worker, p. 13.

[740]Davidson,Free Trade and Fettered Transport, p. 17.

[740]Davidson,Free Trade and Fettered Transport, p. 17.

[741]Davidson,Free Rails and Trams, p. 9.

[741]Davidson,Free Rails and Trams, p. 9.

[742]Ibid.p. 13.

[742]Ibid.p. 13.

[743]Davidson,Free Rails and Free Trams, p. 7.

[743]Davidson,Free Rails and Free Trams, p. 7.

[744]Ibid.p. 14.

[744]Ibid.p. 14.

[745]Public Control of Electric Power and Transit, p. 10.

[745]Public Control of Electric Power and Transit, p. 10.

[746]Davidson,Free Rails and Trams, p. 5.

[746]Davidson,Free Rails and Trams, p. 5.

[747]Davidson,The Old Order and the New, p. 158.

[747]Davidson,The Old Order and the New, p. 158.

[748]Public Control of Electric Power and Transit, p. 14.

[748]Public Control of Electric Power and Transit, p. 14.

[749]Fabianism and the Fiscal Question, p. 16.

[749]Fabianism and the Fiscal Question, p. 16.

[750]Fabianism and the Fiscal Question, p. 16.

[750]Fabianism and the Fiscal Question, p. 16.

All Socialists wish to abolish private capital. Money embodies private capital in its most portable form. It can easily be hidden, and as the Socialists wish to prevent the re-accumulation of new private capital, the abolition of money, and especially of gold and silver, has prominently figured in all Socialistic programmes since the time of Protagoras and of Plato. Socialists wish to effect the exchange of commodities, the payment of labour, and the settlement of accounts mainly by book-keeping.

"As there are no wares in the new community neither will there be any money."[751]"In the Social-Democratic State the citizen will be granted an income, which will be indicated by labour checks or credit cards, as advocated by Gronlund, Bellamy, and John Carruthers."[752]"Under ideal Socialism there would be no money at all and no wages. The industry of the country would be organised and managed by the State, much as the Post Office now is; goods of all kinds would be produced and distributed for use and not for sale, in such quantities as were needed. Hours of labour would be fixed, and every citizen would take what he or she liked from the common stock. Food, clothing, lodging, fuel, transit, amusement, and all other things would be absolutely free, and the only difference between a Prime Minister and a collier would be the difference of rank and occupation."[753]

"How will exchange then be carried on? By account facilitated by some such contrivance as labour checks. When in the Co-operative Commonwealth money becomes superannuated we shall have nothing but checks, notes, tickets—whatever you will call them—issued by authority."[754]And how will international exchange be carried on? Very simply and easily. By barter. "So much tea is wanted from China. The Chinese Government is advised of the quantity and asked what British goods will be acceptable by the Celestials in exchange. There will be international barter on a grand and equitable scale."[755]It is quite logical that the Socialists who wish to introduce the primitive Communism of the prehistoric ages (see Chapter XXIX.), wish also to reintroduce the aboriginal system of barter.

However, the contemplated form of "international barter on a grand and equitable scale" will have its difficulties. China, for instance, may sell much silk and tea to England and take in exchange mostly foreign manufactured goods from America, Germany, Belgium, and Japan, as she does at present. It is to be feared that the "grand and equitable system of international barter" will prove impracticable even if, as most Socialists somewhat rashly assume, all States should become Socialistic commonwealths, or if the grand Socialist Republic of the world should actually be created. We have at present an international currency, Gold. The contemplated creation of unlimited paper issues in lieu of gold, the fulfilment of the ideal of many Socialists, would have a very simple, a very certain, and a very unpleasant consequence. Foreign merchants, doubting the value of the new paper currency and the stability of the new Socialist Government, would of course refuse to part with their goods. Not a pound of cotton, not a bushel of wheat would reach Englandfrom abroad. The nation would be starving, and Socialist deputations would hasten to search out Lord Rothschild in the workhouse, where no doubt he would reside, and implore him to reintroduce capitalism and food into Great Britain.

Some Socialists of the saner kind fear that it will not be possible to abolish money. Kautsky, for instance, writes: "To abolish money I consider impossible. Money is the simplest means as yet known which renders it possible in a mechanism so complicated as the modern system of production, with its enormously minute subdivision of labour, to arrange for the smooth circulation of products and their distribution among the individual members of society; it is the means which enables everyone to satisfy his needs according to his individual taste (naturally within the limits of his economic power). As a medium of circulation, money will remain indispensable so long as nothing better is found."[756]

Socialists declaim against the immorality of charging interest—"usury" as they call it (see Chapters IV., IX., and XVII.), and they are indignant that the banks are unwilling to advance gratis unlimited funds to Socialist town councils to be wasted as fancy may direct (see page 258). Therefore they wish to abolish "that most costly of all modern parasites, the banker."[757]Some very irreligious, if not atheistic, Anarchist-Socialists, such as Mr. Morrison Davidson, pretend to object to interest on religious grounds because, "the Way, the Truth, and the Life said, 'Lend hoping for nothing again.'"[758]Other Socialists wish to abolish the banks and the charging of interest for the benefit of the people and of the Socialist municipal and other councils. "Usury—in that offensive pregnant little word is contained the secret of Society'sworries and Man's woes. Abolish usury: that is the true Fiscal Reform Policy."[759]

"Usury can be arrested at present by nationalisation of exchange. The nationalisation of exchange must be undertaken. Metal must be demonetised and reduced to the ranks. Banking must be undertaken by the municipalities and county councils, and by these elective bodies only, while a durable paper currency issued on the basis of the ascertained wealth of the nation, and maintained in true relation to it, shall supersede gold. Then we arrive at a scientific solution of the question of exchange and put in operation the currency and credit system of Socialism."[760]

When the banks and the gold currency have been abolished and when "exchange has been nationalised" the Socialist local authorities will no longer have any difficulty in procuring the unlimited funds they need for the execution of their boundless plans. They will raise the money by the printing of practically unlimited quantities of paper money issued against the security of "the ascertained wealth of the nation." If they wish to spend money, they simply "make it" by means of an ordinary printing press. Could a simpler and more ingenious system for making money be devised?

"Recently notice has been given by leading bankers of their intention to discriminate against municipal loans. And as things now stand, it is certain that, if an organised effort is made generally by the bankers throughout the country by advising clients against such investments and by refusing to accept municipal bonds as collateral security for overdrafts, &c.—a serious check will be put upon public enterprise. Those who imagine bankers either impotent or incapable of such treason against the public interest should remember what took place in the United States in 1893.

"The natural suggestion to be offered as a counter-move to the threat of the bankers and their Industrial Freedom League is to add to those enterprises now under municipal control that of banking. And surely there is nothing which lends itself more easily to municipalisation! If the credit of a banking house can be employed for promoting enterprise and earning dividends, why cannot municipalities employ their own credit directly? In others words, why cannot the credit of a city be utilised to carry on its municipal works instead of it having to borrow the credit of a bank and pay interest charges? Consider how public works are now financed. The London County Council decides to build decent and respectable houses in some locality for the working classes. It requires, we will say, 500,000l.with which to build dwellings for 2,000 families. Bankers are invited to tender for the loan, and finally the Council gets this advance on a guarantee of 3 per cent. per annum, the principal being repayable at the end of thirty-three and a third years. At the end of this period the Council will have paid the bank 500,000l.in interest as well as the 500,000l.original loan. The charge for the loan is equal to the entire cost of the whole undertaking; the result is that each family must pay about twice the amount of rent that it would otherwise have to pay if the Council had not incurred interest charges through borrowing other people's credit. Was there ever greater lunacy in public affairs?

"Suppose that instead of issuing credit in the shape of bonds of large denomination, the Council issued it in notes of small denominations of pounds and shillings. Does anyone mean to assert that that credit which is eagerly purchased by a banker would be refused by a bricklayer or stonemason? Supposing the London County Council was empowered to issue its credit in one-pound notes, as well as large amounts, and supposingit was compulsory that these notes were good in payment of rates. Is there any question as to their being acceptable? The plan is so simple and so safe that at first it seems amazing it should have been so long out of employment."[761]

"Of course gold will drain off abroad—if the foreigners don't follow in our footsteps at once. If the demonetised gold is withdrawn—well, we can have a new currency by nationalising the railways and paying the shareholders 'in current coin'" (which means in unconvertible notes), "not in redeemable, interest-bearing bonds. So long as solid wealth rests behind our issue, our financial policy is sound. Of course, the railway and other shareholders will want fresh investments; they won't find them, because no man will pay interest to usurers when he can monetise his credit at the mere cost of banking and exchange. They must therefore spend it, and the currency will never be restricted henceforward. And this national ownership of exchange can be operated to compel every monopolist to sell his monopoly to the nation."[762]

This insane project is called by the writer, "A scientific way to Socialism."[763]

Surely science is the most abused word in modern language. The creation of money by unlimited issues of paper secured by the national possessions was tried on the grandest scale at the French Revolution. The "assignats" were secured on the national domains, and their security seemed absolute to the revolutionaries. The great Mirabeau had stated on September 27, 1790: "Our assignats are not ordinary paper money. They are a new creation for which there is no precedent. What constitutes the value of metal money? Its intrinsic value. Now I ask you: Does paper which represents the foremost of the possessions of a nation such as France not possessall the characteristics of intrinsic and generally accepted value which metal money possesses?"[764]The "assignats" speedily fell to a discount, although dealing in them at a discount was made punishable with twenty years' imprisonment with hard labour,[765]and they fell ultimately to waste-paper value. A pair of boots worth thirty francs in gold cost 10,000 francs in paper. On paper all were immensely rich. Yet the masses were starving. Unfortunately people cannot live by consuming unlimited quantities of credit notes. They can become prosperous neither by robbing the rich nor by calling a shilling a sovereign, but only by producing more. Greater wealth means simply increased consumption, and increased consumption, unless based on increased production, can only be effected by intrenching upon and diminishing the national capital, the national reserve store of food, clothing, tools, &c., and thus causing widespread misery and starvation.

[751]Bebel,Woman in the Past, Present, and Future, p. 192.

[751]Bebel,Woman in the Past, Present, and Future, p. 192.

[752]Leatham,Socialism and Character, p. 90.

[752]Leatham,Socialism and Character, p. 90.

[753]Blatchford,Merrie England, p. 100.

[753]Blatchford,Merrie England, p. 100.

[754]Gronlund,Co-operative Commonwealth, p. 103.

[754]Gronlund,Co-operative Commonwealth, p. 103.

[755]Davidson,The Old Order and the New, p. 157.

[755]Davidson,The Old Order and the New, p. 157.

[756]Kautsky,The Social Revolution, p. 14.

[756]Kautsky,The Social Revolution, p. 14.

[757]Jowett,The Socialist and the City, p. 44.

[757]Jowett,The Socialist and the City, p. 44.

[758]Davidson,The Old Order and the New, p. 57.

[758]Davidson,The Old Order and the New, p. 57.

[759]McLachlan,The Tyranny of Usury, p. 1.

[759]McLachlan,The Tyranny of Usury, p. 1.

[760]Ibid.pp. 10, 17.

[760]Ibid.pp. 10, 17.

[761]How to Finance Municipal Enterprises, pp. 3-5.

[761]How to Finance Municipal Enterprises, pp. 3-5.

[762]McLachlan,The Tyranny of Usury, p. 20.

[762]McLachlan,The Tyranny of Usury, p. 20.

[763]Ibid.

[763]Ibid.

[764]Nouvelle Biographie Générale, vol. xxxv. p. 39.

[764]Nouvelle Biographie Générale, vol. xxxv. p. 39.

[765]Roscher,System, p. 227.

[765]Roscher,System, p. 227.

In his thoughtful book on Socialism, Mr. Ramsay Macdonald, M.P., the Socialist leader, attributes the rise of the Socialist movement in great Britain to various causes, one of which is "the reaction against Manchesterism."[766]

Socialists, generally speaking, are opposed to Free Trade. Neither the moderate nor the revolutionary sections of British Socialism have a good word to say for it. The Socialist leaders, looking at the question of Free Trade and Protection from the worker's point of view, have arrived with Lecky at the conclusion that the whole Liberal Free Trade agitation is one of the greatest political impostures which the world has witnessed,[767]a view which, by the by, was also expressed by Bismarck.[768]

Socialists are not under any illusion as to the causes which led to the introduction of Free Trade into Great Britain, and they sneer at the humanitarian cant with which its promoters successfully surrounded it. One of the leading Socialist books states with regard to this point: "Protection was no longer needed by the manufacturers, who had supremacy in the world-market, unlimited access to raw material, and a long start of the rest of the world in the development of machinery andin industrial organisation. The landlord class, on the other hand, was absolutely dependent on Protection. The triumph of Free Trade therefore signifies economically the decay of the old landlord class pure and simple, and the victory of capitalism. The capitalist class was originally no fonder of Free Trade than the landlords. It destroyed in its own interest the woollen manufacture in Ireland, and it would have throttled the trade of the colonies had it not been for the successful resistance of Massachusetts and Virginia. It was Protectionist so long as it suited its purpose to be so. But when cheap raw material was needed for its looms, and cheap bread for its workers; when it feared no foreign competitor, and had established itself securely in India, in North America, in the Pacific; then it demanded Free Trade."[769]"Protection at home was needless to manufacturers who beat all their foreign rivals, and whose very existence was staked on the expansion of their exports. Protection at home was of advantage to none but to the producers of articles of food and other raw materials, to the agricultural interest, which, under the then existing circumstances in England, meant the receivers of rent, the landed aristocracy."[770]

The Free Trade manufacturers, who were chiefly interested in cheapness of production, cared little what became of the workers. "The individualist devotees oflaisser faireused to teach us that when restrictions were removed, free competition would settle everything. Prices would go down, and fill the 'consumer' with joy unspeakable; the fittest would survive, and as for the rest—it was not very clear what would become of them, and it really didn't matter."[771]

The doctrines and the boasts of the Free Tradersare usually treated by the Socialists with contempt. "Cobdenites ascribe every known or imagined improvement in commerce, and the condition of the masses, to Free Trade. Things are better than they were fifty years ago: Free Trade was adopted fifty years ago.Ergo—there you are. There is not a word about the development of railways and steamships, about improved machinery, about telegraphs, the cheap post and telephones, about education and better facilities of travel."[772]

The unsoundness of the fundamental doctrine of Free Trade, "Buy in the cheapest and sell in the dearest market," has frequently been exposed by Socialists. Mr. Blatchford, for instance, in a book of his of which more than a million copies have been sold gives prominence to Cobden's pronouncement in the House of Commons in which he expounded the celebrated maxim: Buy in the cheapest and sell in the dearest market: "To buy in the cheapest market and sell in the dearest, what is the meaning of the maxim? It means that you take the article which you have in the greatest abundance and with it obtain from others that of which they have the most to spare; so giving to mankind the means of enjoying the fullest abundance of earth's goods."[773]Mr. Blatchford then comments upon Cobden's doctrine as follows: "Let us reduce these fine phrases to figures. Suppose America can sell us wheat at 30s.a quarter, and suppose ours costs 32s.6d.a quarter. That is a gain of 1/15th in the cost of wheat. We get a loaf for 3d.instead of having to pay 3-1/4d.That is all the fine phrases mean. What do we lose? We lose the beauty and health of our factory towns; we lose annually some twenty thousand lives in Lancashire alone; we are in constant danger of great strikes; we are reduced to the meanest shifts and the most violent acts of piracy and slaughterto 'open up markets' for our goods; we lose the stamina of our people, and we lose our agriculture."[774]

Most Socialists recognise that under the Free TraderégimeGreat Britain has sacrificed her safety and her strength to profit. "Did you ever consider what it involved, this ruin of British agriculture? Don't you see that if we lose our power to feed ourselves we destroy the advantages of our insular position?"[775]"Don't you see that the people who depend on foreigners for their food are at the mercy of any ambitious statesman who chooses to make war upon them? And don't you think that is rather a stiff price to pay to get a farthing off the loaf? No nation can be secure unless it is independent; no nation can be independent unless it is based upon agriculture."[776]"We must buy wheat from America with cotton goods; but first of all we must buy raw cotton with which to make those goods. We are therefore entirely dependent upon foreigners for our existence."[777]

"The present national ideal is to become 'The workshop of the world.' That is to say, the British people are to manufacture goods for sale to foreign countries, and in return for those goods are to get more money than they could obtain by developing the resources of their own country for their own use. My ideal is that each individual should seek his advantage in co-operation with his fellows, and that the people should make the best of their own country before attempting to trade with other people's."[778]"The Free Traders tell me that under their glorious system of free exchange nations naturally occupy themselves in those industries which produce the most wealth. Thus, if Great Britain, by employing a million men in growing corn, can produce 50,000,000l.a year, while she can produce 51,000,000l.by employing the menin getting coal. Great Britain will 'naturally' employ those men in getting coal! Sending her coal abroad, Great Britain can get 1,000,000l.a year more wealth. What a beautiful doctrine! Enormous increase in wealth. Foreigners can send us 51,000,000l.of corn for our coal, while Great Britain could only grow 50,000,000l.Free Trade for ever! It never occurs to the Free Traders to ask: 'Is it better to have a million men working in the bowels of the earth, or a million men tilling the surface?"[779]

"The idea is, that if by making cloth, cutlery, and other goods we can buy more food than we can produce at home with the same amount of labour, it pays us to let the land go out of cultivation and make Britain the 'workshop of the world.' Now, assuming that we can keep our foreign trade, and assuming that we can get more food by foreign trade than we could produce by the same amount of work, is it quite certain that we are making a good bargain when we desert our fields for our factories? Suppose men can earn more in the big towns than they could earn in the fields, is the difference all gain? Rents and prices are higher in the towns; the life is less healthy, less pleasant. It is a fact that the death-rates in the towns are higher, that the duration of life is shorter, and that the stamina and physique of the workers are lowered by town life and by employment in the factories. And there is another very serious evil attached to the commercial policy of allowing our British agriculture to decay, and that is the evil of our dependence upon foreign countries for our food. The plain and terrible truth is that even if we have a perfect fleet and keep entire control of the seas, we shall still be exposed to the risk of almost certain starvation during a European war. As I have repeatedly pointed out before, we have by sacrificing our agriculture destroyed our insular position.As an island we may be, or should be, free from serious danger of invasion. But of what avail is our vaunted silver shield of the sea if we depend upon other nations for our food? We are helpless in case of a great war. It is not necessary to invade England in order to conquer her. Once our food-supply is stopped, we are shut up like a beleaguered city, to starve or to surrender. Stop the import of food into England for three months and we shall be obliged to surrender at discretion. And our agriculture is to be ruined and the safety and honour of the Empire are to be endangered that a few landlords, coal-owners, and moneylenders may wax fat upon the vitals of the nation."[780]"For over half a century we have been committing industrial suicide. By laying waste our own land and throwing ourselves upon the mercy of the foreign food-producers, we have been deliberately sacrificing the millions and the future to the millionaires and the moment."[781]

The celebrated cheapness argument of the Free Traders has little attraction for Socialists. "'Ah,' says the Free Trader, 'but think of the cheaper grocery and the cheaper boots!' Yes, let us think of them. What good does it do me, my countrymen, one of the unemployed, to think of the wealth of the Rothschilds, or the cheap boots and the cheap bread and the cheap clothes of those who benefit by these things? I am one of the nation. Are these things that are so good for the nation good for me? How can these cheap wares do me any good, who have no money at all? The fact is that Free Trade and cheap goods are only good for certain individuals. They are good for those who benefit by them."[782]

Cheapness means low wages. Cheapness may benefitthat strange and mythical figure the abstract "consumer" of the text-books, but need not benefit the working man. Very likely it will harm him, because "Cheap goods mean cheap labour, and cheap labour means low wages. You have nothing but your labour to sell, and you are told that it will pay you to sell that cheaply."[783]"All commodities are produced by labour, therefore to drive commodities down to their cheapest rate must result in cheap labour."[784]Cheapness may fill those with joy who have money in their pocket and who do not care how cheap goods are produced. But incidentally the policy of Free Trade and oflaisser faire, the policy of cheapness which benefits the consumer and takes no notice of the producer, encourages and causes sweating and untold misery to the workers. "Do you ever consider the lives of the people who make these marvellously cheap things? And do you ever think what kind of homes they have; in what kind of districts the homes are situated; and what becomes of those people when they are too ill, or too old, or too infirm to earn even four shillings as the price of a hundred and twelve hours' work?"[785]

Free Trade may have been beneficial in Cobden's time, when Great Britain was the chief manufacturing country in the world. But what is its effect under the changed conditions of the present time, and how will these changes affect her industries and her workers? "In the early days of our great trade the commercial school wished Britain to be the 'workshop of the world,' and for a good while she was the workshop of the world. But now a change is coming. Other nations have opened world-workshops, and we have to face competition. France, Germany, Holland, Belgium, and America are all eager to take our coveted place as general factory, and China and Japan are changing swiftly from customers into rivaldealers. Is it likely, then, that we can keep all our foreign trade, or that what we keep will be as profitable as it is at present?"[786]"Suppose we lost a lump of our export trade. Suppose the Japanese, Chinese, or Americans capture some of our markets. Where should we get our food? If we could not sell our exports, we could not buy imports of food. We are walking on thin ice, my countrymen. And if competition became keener, what would the champions of Free Trade do to meet it? They would say: 'We must sell our manufactures, or you will get no food. To sell our manufactures we must reduce the price. To reduce the price we must reduce the cost of production. To reduce the cost of production we must cut down wages.'"[787]"Free Trade meanslaisser faireall round, not only in regard to inanimate commodities, but in respect to that most important commodity of all—human labour power. Chinese, Japanese, Indians, negroes are all permitted under complete Free Trade to compete freely on their lower standard of life against the white man."[788]"A demand for a general reduction of wages is the end of the fine talk about big profits, national prosperity, and the 'workshop of the world.' The British workers are to emulate the thrift of the Japanese, the Hindoos, and the Chinese, and learn to live on boiled rice and water. Why? So that they can accept low wages and retain our precious foreign trade. Yes, that is the latest idea. With brutal frankness the workers of Britain have been told again and again that, 'If we are to keep our foreign trade, the British workers must accept the conditions of their foreign rivals,' and that is the result of our commercial glory! For that we have sacrificed our agriculture and endangered the safety of our Empire."[789]

The assertion of the Free Traders that Free Trade has made Great Britain prosperous is treated with scorn. "The Free Traders say we, the nation, are richer under this system than we should be under Protection. By employing ourselves in those occupations in which we can produce the cheapest article, we earn the most wealth in money value.—In money value.—They do not consider the twelve million underfed, the hundreds of thousands of unemployed. The nation,we, are richer. That is the test. Well, my countrymen, I think it is a damnable doctrine, and its results are damnable. The Free Traders boast of our wealth. Are twelve million underfed, a million starving children, a million paupers, an infantile death-rate of 150 per 1,000—are these signs of wealth? The question is not 'Is the nation wealthy?' but 'Are the people wealthy?' Judged by this standard, how poor a nation is this, my countrymen! The Free Traders tell us that we earn more wealth under Free Trade than we should under Protection. Again I ask: Who arewe?"[790]A Socialist weekly lately said: "Great Britain, I understand, has recovered its prosperity; our exports are going strong, and our imports have nothing much to complain about. Prosperity? Why, Great Britain is simply rolling in—statistics."[791]

Socialists rightly demand that the effect of British fiscal policy should be judged not by its effect upon the wealth of the few, but upon the employment of the many, and they clearly recognise the destructive effect which Free Trade has upon the national industries. "Under Free Trade it is possible for a foreign trader to take trade away from a British trader. If for any reason we lost an important trade, or several small trades, our unemployed would naturally grow. The Free Trade theory that the capital and the labour in the lost tradeswill find other employment is simply theory. Suppose they didn't. The Free Trader has no answer except: Look at our enormous wealth. My countrymen, looking at another man's wealth does not feed me, clothe me, and house me."[792]"When men are thrown out of work, by competition, or depression, or any cause, they do not so easily 'transfer their services to some other new employment.' It is easy to make them do so—on paper. And when they do get a fresh job, is it always as good as the one lost? Do they not often lose all their belongings, and get into debt, while looking for that new employment which the Free Traders talk about so glibly? and do not capitalists often lose a good deal of capital before they give up the fight for the trade? Nevertheless, say the Free Traders, we, the nation, are richer under this system than we should be under Protection. By employing ourselves in those occupations in which we can produce the cheapest article, we earn the most wealth in money value."[793]To this argument the Socialists reply: "Does your moral law say it is right that men should be thrown on the streets to starve because other men in other countries produce goods 2-1/2 per cent. cheaper?"[794]

The statistics of an enormous foreign trade, which Free Traders triumphantly display for the edification of the masses, give, according to the Socialists, little consolation to the unemployed and ill-employed workers. "Figures, be they never so dazzling, and numbers, be they never so round, will not feed the hungry, house the homeless, or bring light and warmth into the drear, precarious lives of the mass of our people. The increase of trade means only an increase of production, and not necessarily of persons employed or wages gained. With the rapid concentration of industries and the perfection of labour-saving devices, production has been enormously increased without any corresponding increase ofemployment; in some cases, with an actual decrease of employment. What the workers are interested in is not the mere growth of profitable trade, but the extent to which the industries of their country afford them and their families a security of livelihood, and the reasonable comforts and recreations which their labour has more than earned."[795]

Most Socialists frankly own that Free Trade has been a failure. "In the House of Commons on March 12th, 1906, Mr. P. Snowden, M.P., said: 'Sixty years of Free Trade had failed to mitigate or palliate to any considerable extent the grave industrial and social evils which Free Traders and Protectionists alike were compelled to admit. Sir H. Campbell-Bannerman had admitted them when he said that 30 per cent. of our population were on the verge of hunger. He contended that whatever improvement had been effected in the condition of the people during the last sixty years was due to other causes than Free Trade."[796]

During 1907 the complaints among the Socialists about the effect of Free Trade upon employment have become louder. The fact that British unemployed workmen furnished an apparently inexhaustible supply of strike-breakers to Continental employers, that men fought like wild beasts at the registry offices in order to be allowed to act as strike-breakers in Hamburg and Antwerp, has shown the great prevalence of unemployment. Commenting hereon a Socialist monthly said in bitter irony, under the heading "British Blacklegs": "The intervention in the Antwerp dock-workers' strike of British workmen as blacklegs is a striking commentary on the prosperity of the people of this country. Under Free Trade we have been told—ad nauseam—by Liberal politicians that the British working-man is the mostprosperous and well-fed human being on the face of the earth. He, with wages nearly double those of the best-paid Continental workman, with all kinds of provisions infinitely cheaper—thanks to Free Trade—than they can be procured elsewhere, is indeed 'God's Englishman.' It would be as unkind as rude to suggest that these honourable politicians had been lying. The only alternative conclusion to be arrived at is that the British workman is a most disinterested being, willing to sacrifice his prosperity and comfort in order to compel the miserably paid dockers of Antwerp and Hamburg to submit to the conditions against which they have revolted."[797]The action of Mr. Haldane, the present Secretary of State for War, in dismissing a large number of workmen from Woolwich Arsenal and giving a contract for 100,000 horseshoes for the British Army to an American firm on account of greater cheapness, prompted the following verses:


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