Section ThreeHow the Servile Institution Was for a Time DissolvedThe process by which slavery disappeared among Christian men, though very lengthy in its development (it covered close upon a thousand years), and though exceedingly complicated in its detail, may be easily and briefly grasped in its main lines.Let it first be clearly understood that the vast revolution through which the European mind passed bet ween the first and the fourth centuries (that revolution which is often termed the Conversion of the World to Christianity, but which should for purposes of historical accuracy be called the Growth of the Church) included no attack upon the Servile Institution.No dogma of the Church pronounced Slavery to be immoral, or the sale and purchase of men to be a sin, or the imposition of compulsory labour upon a Christian to be a contravention of any human right.The emancipation of Slaves was indeed regarded as a good work by the Faithful: but so was it regarded by the Pagan. It was, on the face of it, a service rendered to one’s fellowmen. The sale of Christians to Pagan masters was abhorrent to the later empire of the Barbarian Invasions, not because slavery in itself was condemned, but because it was a sort of treason to civilisation to force men away from Civilisation to Barbarism. In general you will discover no pronouncement against slavery as an institution, nor any moral definition attacking it, throughout all those early Christian centuries during which it none the less effectively disappears.The form of its disappearance is well worth noting. It begins with the establishment as the fundamental unit of production in Western Europe of those great landed estates, commonly lying in the hands of a single proprietor, and generally known asVillӕ.There were, of course, many other forms of human agglomeration: small peasant farms owned in absolute proprietorship by their petty masters; groups of free men associated in what was called a Vicus; manufactories in which groups of slaves were industrially organised to the profit of their master; and, governing the regions around them, the scheme of Roman towns.But of all these the Villa the dominating type; and as society passed from the high civilisation of the first four centuries into the simplicity of the Dark Ages, the Villa, the unit of agricultural production, became more and more the model of all society.Now the Villa began as a considerable extent of land, containing, like a modern English estate, pasture, arable, water, wood and heath, or waste land. It was owned by a dominus orlordin absolute proprietorship, to sell, or leave by will, to do with it whatsoever he chose. It was cultivated for him bySlavesto whom he owed nothing in return, and whom it was simply his interest to keep alive and to continue breeding in order that they might perpetuate his wealth.I concentrate particularly upon these Slaves, the great majority of the human beings inhabiting the land, because, although there arose in the Dark Ages, when the Roman Empire was passing into the society of the Middle Ages, other social elements within theVillæ—the Freed men who owed the lord a modified service, and even occasionally independent citizens present through a contract terminable and freely entered into yet it is theSlavewho is the mark of all that society.At its origin, then, the Roman Villa was a piece of absolute property, the production of wealth upon which was due to the application of slave labour to the natural resources of the place; and that slave labour was as much the property of the lord as was the land itself.The first modification which this arrangement showed in the new society which accompanied the growth and establishment of the Church in the Roman world, was a sort of customary rule which modified the old arbitrary position of the Slave.The Slave was still a Slave, but it was both more convenient in the decay of communications and public power, and more consonant with the social spirit of the time to make sure of that Slave’s produce by asking him for no more than certain customary dues. The Slave and his descendants became more or less rooted to one spot. Some were still bought and sold, but in decreasing numbers. As the generations passed a larger and a larger proportion lived where and as their fathers had lived, and the produce which they raised was fixed more and more at a certain amount, which the lord was content to receive and ask no more. The arrangement was made workable by leaving to the Slave all the remaining produce of his own labour. There was a sort of implied bargain here, in the absence of public powers and in the decline of the old highly centralised and vigorous system which could always guarantee to the master the full product of the Slave’s effort. The bargain implied was, that if the Slave Community of the Villa would produce for the benefit of its Lord not less than a certain customary amount of goods from the soil of the Villa, the Lord could count on their always exercising that effort by leaving to them all the surplus, which they could increase, if they willed, indefinitely.By the ninth century, when this process had been gradually at work for a matter of some three hundred years, one fixed form of productive unit began to be apparent throughout Western Christendom.The old absolutely owned estate had come to be divided into three portions. One of these was pasture and arable land, reserved privately to the lord, and calleddomain: that is, lord’s land. Another was in the occupation, and already almost in the possession (practically, though not legally), of those who had once been Slaves. A third was common land over which both the Lord and the Slave exercised each their various rights, which rights were minutely remembered and held sacred by custom. For instance, in a certain village, if there was beech pasture for three hundred swine, the lord might put in but fifty: two hundred and fifty were the rights of the “village.”Upon the first of these portions, Domain, wealth was produced by the obedience of the Slave for certain fixed hours of labour. He must come so many days a week, or upon such and such occasions (all fixed and customary), to till the land of the Domain for his Lord, andallthe produce of this must be handed over to the Lord though, of course, a daily wage in kind was allowed, for the labourer must live.Upon the second portion, “Land in Villenage,” which was nearly always the most of the arable and pasture land of theVillæ, the Slaves worked by rules and customs which they gradually came to elaborate for themselves. They worked under an officer of their own, sometimes nominated, sometimes elected: nearly always, in practice, a man suitable to them and more or less of their choice; though this co-operative work upon the old Slave-ground was controlled by the general customs of the village, common to lord and slave alike, and the principal officer over both kinds of land was the Lord’s Steward.Of the wealth so produced by the Slaves, a certain fixed portion (estimated originally in kind) was payable to the Lord’s Bailiff, and became the property of the Lord.Finally, on the third division of the land, the “Waste,” the “Wood,” the “Heath,” and certain common pastures, wealth was produced as elsewhere by the labour of those who had once been the Slaves, but divided in customary proportions between them and their master. Thus, such and such a water meadow would have grazing for so many oxen; the number was rigidly defined, and of that number so many would be the Lord’s and so many the Villagers’.During the eighth, ninth and tenth centuries this system crystallised and became so natural in men’s eyes that the original servile character of the working folk upon the Villa was forgotten.The documents of the time are rare. These three centuries are the crucible of Europe, and record is drowned and burnt in them. Our study of their social conditions, especially in the latter part, are matter rather of inference than of direct evidence. But the sale and purchase of men, already exceptional at the beginning of this period, is almost unknown before the end of it. Apart from domestic slaves within the household, slavery in the old sense which Pagan antiquity gave that institution had been transformed out of all knowledge, and when, with the eleventh century, the true Middle Ages begin to spring from the soil of the Dark Ages, and a new civilisation to arise, though the old wordservus(the Latin for a slave) is still used for the man who works the soil, his status in the now increasing number of documents which we can consult is wholly changed; we can certainly no longer translate the word by the English wordslave; we are compelled to translate it by a new word with very different connotations: the wordserf.The Serf of the early Middle Ages, of the eleventh and early twelfth centuries, of the Crusades and the Norman Conquest, is already nearly a peasant. He is indeed bound in legal theory to the soil upon which he was born. In social practice, all that is required of him is that his family should till its quota of servile land, and that the dues to the lord shall not fail from absence of labour. That duty fulfilled, it is easy and common for members of the serf-class to enter the professions and the Church, or to go wild; to become men practically free in the growing industries of the towns. With every passing generation the ancient servile conception of the labourer’s status grows more and more dim, and the Courts and the practice of society treat him more and more as a man strictly bound to certain dues and to certain periodical labour within his industrial unit, but in all other respects free.As the civilisation of the Middle Ages develops, as wealth increases and the arts progressively flourish, this character of freedom becomes more marked. In spite of attempts in time of scarcity (as after a plague) to insist upon the old rights to compulsory labour, the habit of commuting these rights for money-payments and dues has grown too strong to be resisted.If at the end of the fourteenth century, let us say, or at the beginning of the fifteenth, you had visited some Squire upon his estate in France or in England, he would have told you of the whole of it, “These are my lands.” But the peasant (as he now was) would have said also of his holding, “This is my land.” He could not be evicted from it. The dues which he was customarily bound to pay were but a fraction of its total produce. He could not always sell it, but it was always inheritable from father to son; and, in general, at the close of this long process of a thousand years the Slave had become a free man for all the ordinary purposes of society. He bought and sold. He saved as he willed, he invested, he built, he drained at his discretion, and if he improved the land it was to his own profit.Meanwhile, side by side with this emancipation of mankind in the direct line of descent from the old chattel slaves of the Roman villa went, in the Middle Ages, a crowd of institutions which all similarly made for a distribution of property, and for the destruction of even the fossil remnants of a then forgotten Servile State. Thus industry of every kind in the towns, in transport, in crafts, and in commerce, was organised in the form ofGuilds. And a Guild was a society partly co-operative, but in the main composed of private owners of capital whose corporation was self-governing, and was designed to check competition between its members: to prevent the growth of one at the expense of the other. Above all, most jealously did the Guild safeguard the division of property, so that there should be formed within its ranks no proletariat upon the one side, and no monopolising capitalist upon the other.There was a period of apprenticeship at a man’s entry into a Guild, during which he worked for a master; but in time he became a master in his turn. The existence of such corporations as the normal units of industrial production, of commercial effort, and of the means of transport, is proof enough of what the social spirit was which had also enfranchised the labourer upon the land. And while such institutions flourished side by side with the no longer servile village communities, freehold or absolute possession of the soil, as distinguished from the tenure of the serf under the lord, also increased.These three forms under which labour was exercised the serf, secure in his position, and burdened only with regular dues, which were but a fraction of his produce; the freeholder, a man independent save for money dues, which were more of a tax than a rent; the Guild, in which well-divided capital worked co-operatively for craft production, for transport and for commerce—all three between them were making for a society which should be based upon the principle of property. All, or most,—the normal family—should own. And on ownership the freedom of the State should repose.The State, as the minds of men envisaged it at the close of this process, was an agglomeration of families of varying wealth, but by far the greater number owners of the means of production. It was an agglomeration in which the stability of thisdistributivesystem (as I have called it) was guaranteed by the existence of co-operative bodies, binding men of the same craft or of the same village together; guaranteeing the small proprietor against loss of his economic independence, while at the same time it guaranteed society against the growth of a proletariat. If liberty of purchase and of sale, of mortgage and of inheritance was restricted, it was restricted with the social object of preventing the growth of an economic oligarchy which could exploit the rest of the community. The restraints upon liberty were restraints designed for the preservation of liberty; and every action of Mediæval Society, from the flower of the Middle Ages to the approach of their catastrophe, was directed towards the establishment of a State in which men should be economically free through the possession of capital and of land.Save here and there in legal formulæ, or in rare patches isolated and eccentric, the Servile Institution had totally disappeared; nor must it be imagined that anything in the nature of Collectivism had replaced it. There was common land, but it was common land jealously guarded by men who were also personal proprietors of other land. Common property in the village was but one of the forms of property, and was used rather as the fly-wheel to preserve the regularity of the co-operative machine than as a type of holding in any way peculiarly sacred. The Guilds had property in common, but that property was the property necessary to their co-operative life, their Halls, their Funds for Relief, their Religious Endowments. As for the instruments of their trades, those instruments were owned by the individual members,notby the guild, save where they were of so expensive a kind as to necessitate a corporate control.Such was the transformation which had come over European society in the course of ten Christian centuries. Slavery had gone, and in its place had come that establishment of free possession which seemed so normal to men, and so consonant to a happy human life. No particular name was then found for it. To-day, and now that it has disappeared, we must construct an awkward one, and say that the Middle Ages had instinctively conceived and brought into existence theDistributive State.That excellent consummation of human society passed, as we know, and was in certain Provinces of Europe, but more particularly in Britain, destroyed.For a society in which the determinant mass of families were owners of capital and of land; for one in which production was regulated by self-governing corporations of small owners; and for one in which the misery and insecurity of a proletariat was unknown, there came to be substituted the dreadful moral anarchy against which all moral effort is now turned, and which goes by the name ofCapitalism.How did such a catastrophe come about? Why was it permitted, and upon what historical process did the evil batten? What turned an England economically free into the England which we know to-day, of which at least one-third is indigent, of which nineteen-twentieths are dispossessed of capital and of land, and of which the whole industry and national life is controlled upon its economic side by a few chance directors of millions, a few masters of unsocial and irresponsible monopolies?The answer most usually given to this fundamental question in our history, and the one most readily accepted, is that this misfortune came about through a material process known as theIndustrial Revolution. The use of expensive machinery, the concentration of industry and of its implements are imagined to have enslaved, in some blind way, apart from the human will, the action of English mankind.The explanation is wholly false. No such material cause determined the degradation from which we suffer.It was the deliberate action of men, evil will in a few and apathy of will among the many, which produced a catastrophe as human in its causes and inception as in its vile effect.Capitalism was not the growth of the industrial movement, nor of chance material discoveries. A little acquaintance with history and a little straightforwardness in the teaching of it would be enough to prove that.The Industrial System was a growth proceeding from Capitalism, not its cause. Capitalism was here in England before the Industrial System came into being;—before the use of coal and of the new expensive machinery, and of the concentration of the implements of production in the great towns. Had Capitalism not been present before the Industrial Revolution, that revolution might have proved as beneficent to Englishmen as it has proved maleficent. But Capitalism—that is, the ownership by a few of the springs of life—was present long before the great discoveries came. It warped the effect of these discoveries and new inventions, and it turned them from a good into an evil thing. It was not machinery that lost us our freedom; it was the loss of a free mind.
The process by which slavery disappeared among Christian men, though very lengthy in its development (it covered close upon a thousand years), and though exceedingly complicated in its detail, may be easily and briefly grasped in its main lines.
Let it first be clearly understood that the vast revolution through which the European mind passed bet ween the first and the fourth centuries (that revolution which is often termed the Conversion of the World to Christianity, but which should for purposes of historical accuracy be called the Growth of the Church) included no attack upon the Servile Institution.
No dogma of the Church pronounced Slavery to be immoral, or the sale and purchase of men to be a sin, or the imposition of compulsory labour upon a Christian to be a contravention of any human right.
The emancipation of Slaves was indeed regarded as a good work by the Faithful: but so was it regarded by the Pagan. It was, on the face of it, a service rendered to one’s fellowmen. The sale of Christians to Pagan masters was abhorrent to the later empire of the Barbarian Invasions, not because slavery in itself was condemned, but because it was a sort of treason to civilisation to force men away from Civilisation to Barbarism. In general you will discover no pronouncement against slavery as an institution, nor any moral definition attacking it, throughout all those early Christian centuries during which it none the less effectively disappears.
The form of its disappearance is well worth noting. It begins with the establishment as the fundamental unit of production in Western Europe of those great landed estates, commonly lying in the hands of a single proprietor, and generally known asVillӕ.
There were, of course, many other forms of human agglomeration: small peasant farms owned in absolute proprietorship by their petty masters; groups of free men associated in what was called a Vicus; manufactories in which groups of slaves were industrially organised to the profit of their master; and, governing the regions around them, the scheme of Roman towns.
But of all these the Villa the dominating type; and as society passed from the high civilisation of the first four centuries into the simplicity of the Dark Ages, the Villa, the unit of agricultural production, became more and more the model of all society.
Now the Villa began as a considerable extent of land, containing, like a modern English estate, pasture, arable, water, wood and heath, or waste land. It was owned by a dominus orlordin absolute proprietorship, to sell, or leave by will, to do with it whatsoever he chose. It was cultivated for him bySlavesto whom he owed nothing in return, and whom it was simply his interest to keep alive and to continue breeding in order that they might perpetuate his wealth.
I concentrate particularly upon these Slaves, the great majority of the human beings inhabiting the land, because, although there arose in the Dark Ages, when the Roman Empire was passing into the society of the Middle Ages, other social elements within theVillæ—the Freed men who owed the lord a modified service, and even occasionally independent citizens present through a contract terminable and freely entered into yet it is theSlavewho is the mark of all that society.
At its origin, then, the Roman Villa was a piece of absolute property, the production of wealth upon which was due to the application of slave labour to the natural resources of the place; and that slave labour was as much the property of the lord as was the land itself.
The first modification which this arrangement showed in the new society which accompanied the growth and establishment of the Church in the Roman world, was a sort of customary rule which modified the old arbitrary position of the Slave.
The Slave was still a Slave, but it was both more convenient in the decay of communications and public power, and more consonant with the social spirit of the time to make sure of that Slave’s produce by asking him for no more than certain customary dues. The Slave and his descendants became more or less rooted to one spot. Some were still bought and sold, but in decreasing numbers. As the generations passed a larger and a larger proportion lived where and as their fathers had lived, and the produce which they raised was fixed more and more at a certain amount, which the lord was content to receive and ask no more. The arrangement was made workable by leaving to the Slave all the remaining produce of his own labour. There was a sort of implied bargain here, in the absence of public powers and in the decline of the old highly centralised and vigorous system which could always guarantee to the master the full product of the Slave’s effort. The bargain implied was, that if the Slave Community of the Villa would produce for the benefit of its Lord not less than a certain customary amount of goods from the soil of the Villa, the Lord could count on their always exercising that effort by leaving to them all the surplus, which they could increase, if they willed, indefinitely.
By the ninth century, when this process had been gradually at work for a matter of some three hundred years, one fixed form of productive unit began to be apparent throughout Western Christendom.
The old absolutely owned estate had come to be divided into three portions. One of these was pasture and arable land, reserved privately to the lord, and calleddomain: that is, lord’s land. Another was in the occupation, and already almost in the possession (practically, though not legally), of those who had once been Slaves. A third was common land over which both the Lord and the Slave exercised each their various rights, which rights were minutely remembered and held sacred by custom. For instance, in a certain village, if there was beech pasture for three hundred swine, the lord might put in but fifty: two hundred and fifty were the rights of the “village.”
Upon the first of these portions, Domain, wealth was produced by the obedience of the Slave for certain fixed hours of labour. He must come so many days a week, or upon such and such occasions (all fixed and customary), to till the land of the Domain for his Lord, andallthe produce of this must be handed over to the Lord though, of course, a daily wage in kind was allowed, for the labourer must live.
Upon the second portion, “Land in Villenage,” which was nearly always the most of the arable and pasture land of theVillæ, the Slaves worked by rules and customs which they gradually came to elaborate for themselves. They worked under an officer of their own, sometimes nominated, sometimes elected: nearly always, in practice, a man suitable to them and more or less of their choice; though this co-operative work upon the old Slave-ground was controlled by the general customs of the village, common to lord and slave alike, and the principal officer over both kinds of land was the Lord’s Steward.
Of the wealth so produced by the Slaves, a certain fixed portion (estimated originally in kind) was payable to the Lord’s Bailiff, and became the property of the Lord.
Finally, on the third division of the land, the “Waste,” the “Wood,” the “Heath,” and certain common pastures, wealth was produced as elsewhere by the labour of those who had once been the Slaves, but divided in customary proportions between them and their master. Thus, such and such a water meadow would have grazing for so many oxen; the number was rigidly defined, and of that number so many would be the Lord’s and so many the Villagers’.
During the eighth, ninth and tenth centuries this system crystallised and became so natural in men’s eyes that the original servile character of the working folk upon the Villa was forgotten.
The documents of the time are rare. These three centuries are the crucible of Europe, and record is drowned and burnt in them. Our study of their social conditions, especially in the latter part, are matter rather of inference than of direct evidence. But the sale and purchase of men, already exceptional at the beginning of this period, is almost unknown before the end of it. Apart from domestic slaves within the household, slavery in the old sense which Pagan antiquity gave that institution had been transformed out of all knowledge, and when, with the eleventh century, the true Middle Ages begin to spring from the soil of the Dark Ages, and a new civilisation to arise, though the old wordservus(the Latin for a slave) is still used for the man who works the soil, his status in the now increasing number of documents which we can consult is wholly changed; we can certainly no longer translate the word by the English wordslave; we are compelled to translate it by a new word with very different connotations: the wordserf.
The Serf of the early Middle Ages, of the eleventh and early twelfth centuries, of the Crusades and the Norman Conquest, is already nearly a peasant. He is indeed bound in legal theory to the soil upon which he was born. In social practice, all that is required of him is that his family should till its quota of servile land, and that the dues to the lord shall not fail from absence of labour. That duty fulfilled, it is easy and common for members of the serf-class to enter the professions and the Church, or to go wild; to become men practically free in the growing industries of the towns. With every passing generation the ancient servile conception of the labourer’s status grows more and more dim, and the Courts and the practice of society treat him more and more as a man strictly bound to certain dues and to certain periodical labour within his industrial unit, but in all other respects free.
As the civilisation of the Middle Ages develops, as wealth increases and the arts progressively flourish, this character of freedom becomes more marked. In spite of attempts in time of scarcity (as after a plague) to insist upon the old rights to compulsory labour, the habit of commuting these rights for money-payments and dues has grown too strong to be resisted.
If at the end of the fourteenth century, let us say, or at the beginning of the fifteenth, you had visited some Squire upon his estate in France or in England, he would have told you of the whole of it, “These are my lands.” But the peasant (as he now was) would have said also of his holding, “This is my land.” He could not be evicted from it. The dues which he was customarily bound to pay were but a fraction of its total produce. He could not always sell it, but it was always inheritable from father to son; and, in general, at the close of this long process of a thousand years the Slave had become a free man for all the ordinary purposes of society. He bought and sold. He saved as he willed, he invested, he built, he drained at his discretion, and if he improved the land it was to his own profit.
Meanwhile, side by side with this emancipation of mankind in the direct line of descent from the old chattel slaves of the Roman villa went, in the Middle Ages, a crowd of institutions which all similarly made for a distribution of property, and for the destruction of even the fossil remnants of a then forgotten Servile State. Thus industry of every kind in the towns, in transport, in crafts, and in commerce, was organised in the form ofGuilds. And a Guild was a society partly co-operative, but in the main composed of private owners of capital whose corporation was self-governing, and was designed to check competition between its members: to prevent the growth of one at the expense of the other. Above all, most jealously did the Guild safeguard the division of property, so that there should be formed within its ranks no proletariat upon the one side, and no monopolising capitalist upon the other.
There was a period of apprenticeship at a man’s entry into a Guild, during which he worked for a master; but in time he became a master in his turn. The existence of such corporations as the normal units of industrial production, of commercial effort, and of the means of transport, is proof enough of what the social spirit was which had also enfranchised the labourer upon the land. And while such institutions flourished side by side with the no longer servile village communities, freehold or absolute possession of the soil, as distinguished from the tenure of the serf under the lord, also increased.
These three forms under which labour was exercised the serf, secure in his position, and burdened only with regular dues, which were but a fraction of his produce; the freeholder, a man independent save for money dues, which were more of a tax than a rent; the Guild, in which well-divided capital worked co-operatively for craft production, for transport and for commerce—all three between them were making for a society which should be based upon the principle of property. All, or most,—the normal family—should own. And on ownership the freedom of the State should repose.
The State, as the minds of men envisaged it at the close of this process, was an agglomeration of families of varying wealth, but by far the greater number owners of the means of production. It was an agglomeration in which the stability of thisdistributivesystem (as I have called it) was guaranteed by the existence of co-operative bodies, binding men of the same craft or of the same village together; guaranteeing the small proprietor against loss of his economic independence, while at the same time it guaranteed society against the growth of a proletariat. If liberty of purchase and of sale, of mortgage and of inheritance was restricted, it was restricted with the social object of preventing the growth of an economic oligarchy which could exploit the rest of the community. The restraints upon liberty were restraints designed for the preservation of liberty; and every action of Mediæval Society, from the flower of the Middle Ages to the approach of their catastrophe, was directed towards the establishment of a State in which men should be economically free through the possession of capital and of land.
Save here and there in legal formulæ, or in rare patches isolated and eccentric, the Servile Institution had totally disappeared; nor must it be imagined that anything in the nature of Collectivism had replaced it. There was common land, but it was common land jealously guarded by men who were also personal proprietors of other land. Common property in the village was but one of the forms of property, and was used rather as the fly-wheel to preserve the regularity of the co-operative machine than as a type of holding in any way peculiarly sacred. The Guilds had property in common, but that property was the property necessary to their co-operative life, their Halls, their Funds for Relief, their Religious Endowments. As for the instruments of their trades, those instruments were owned by the individual members,notby the guild, save where they were of so expensive a kind as to necessitate a corporate control.
Such was the transformation which had come over European society in the course of ten Christian centuries. Slavery had gone, and in its place had come that establishment of free possession which seemed so normal to men, and so consonant to a happy human life. No particular name was then found for it. To-day, and now that it has disappeared, we must construct an awkward one, and say that the Middle Ages had instinctively conceived and brought into existence theDistributive State.
That excellent consummation of human society passed, as we know, and was in certain Provinces of Europe, but more particularly in Britain, destroyed.
For a society in which the determinant mass of families were owners of capital and of land; for one in which production was regulated by self-governing corporations of small owners; and for one in which the misery and insecurity of a proletariat was unknown, there came to be substituted the dreadful moral anarchy against which all moral effort is now turned, and which goes by the name ofCapitalism.
How did such a catastrophe come about? Why was it permitted, and upon what historical process did the evil batten? What turned an England economically free into the England which we know to-day, of which at least one-third is indigent, of which nineteen-twentieths are dispossessed of capital and of land, and of which the whole industry and national life is controlled upon its economic side by a few chance directors of millions, a few masters of unsocial and irresponsible monopolies?
The answer most usually given to this fundamental question in our history, and the one most readily accepted, is that this misfortune came about through a material process known as theIndustrial Revolution. The use of expensive machinery, the concentration of industry and of its implements are imagined to have enslaved, in some blind way, apart from the human will, the action of English mankind.
The explanation is wholly false. No such material cause determined the degradation from which we suffer.
It was the deliberate action of men, evil will in a few and apathy of will among the many, which produced a catastrophe as human in its causes and inception as in its vile effect.
Capitalism was not the growth of the industrial movement, nor of chance material discoveries. A little acquaintance with history and a little straightforwardness in the teaching of it would be enough to prove that.
The Industrial System was a growth proceeding from Capitalism, not its cause. Capitalism was here in England before the Industrial System came into being;—before the use of coal and of the new expensive machinery, and of the concentration of the implements of production in the great towns. Had Capitalism not been present before the Industrial Revolution, that revolution might have proved as beneficent to Englishmen as it has proved maleficent. But Capitalism—that is, the ownership by a few of the springs of life—was present long before the great discoveries came. It warped the effect of these discoveries and new inventions, and it turned them from a good into an evil thing. It was not machinery that lost us our freedom; it was the loss of a free mind.
Section FourHow the Distributive State FailedWith the close of the middle ages the societies of Western Christendom and England among the rest were economically free.Property was an institution native to the State and enjoyed by the great mass of its citizens. Co-operative institutions, voluntary regulations of labour, restricted the completely independent use of property by its owners only in order to keep that institution intact and to prevent the absorption of small property by great.This excellent state of affairs which we had reached after many centuries of Christian development, and in which the old institution of slavery had been finally eliminated from Christendom, did not everywhere survive. In England in particular it was ruined. The seeds of the disaster were sown in the sixteenth century. Its first apparent effects came to light in the seventeenth. During the eighteenth century England came to be finally, though insecurely, established upon a proletarian basis, that is, it had already become a society of rich men possessed of the means of production on the one hand, and a majority dispossessed of those means upon the other. With the nineteenth century the evil plant had come to its maturity, and England had become before the close of that period a purely Capitalist State, the type and model of Capitalism for the whole world: with the means of production tightly held by a very small group of citizens, and the whole determining mass of the nation dispossessed of capital and land, and dispossessed, therefore, in all cases of security, and in many of sufficiency as well. The mass of Englishmen, still possessed of political, lacked more and more the elements of economic, freedom, and were in a worse posture than free citizens have ever found themselves before in the history of Europe.By what steps did so enormous a catastrophe fall upon us?The first step in the process consisted in the mishandling of a great economic revolution which marked the sixteenth century. The lands and the accumulated wealth of the monasteries were taken out of, the hands of their old possessors with the intention of vesting them in the Crown—but they passed, as a fact, not into the hands of the Crown, but into the hands of an already wealthy section of the community who, after the change was complete, became in the succeeding hundred years the governing power of England.This is what happened:—The England of the early sixteenth century, the England over which Henry VIII inherited his powerful Crown in youth, though it was an England in which the great mass of men owned the land they tilled and the houses in which they dwelt, and the implements with which they worked, was yet an England in which these goods, though widely distributed, were distributed unequally.Then, as now, the soil and its fixtures were the basis of all wealth, but the proportion between the value of the soil and its fixtures and the value of other means of production (implements, stores of clothing and of subsistence, etc.) was different from what it is now. The land and the fixtures upon it formed a very much larger fraction of the totality of the means of production than they do to-day. They represent to-day not one-half the total means of production of this country, and though they are the necessary foundation for all wealth production, yet our great machines, our stores of food and clothing, our coal and oil, our ships and the rest of it, come to more than the true value of the land and of the fixtures upon the land: they come to more than the arable soil and the pasture, the constructional value of the houses, wharves and docks, and so forth. In the early sixteenth century the land and the fixtures upon it came, upon the contrary, to very much more than all other forms of wealth combined.Now this form of wealth was here, more than in any other Western European country, already in the hands of a wealthy land-owning class at the end of the Middle Ages.It is impossible to give exact statistics, because none were gathered, and we can only make general statements based upon inference and research. But, roughly speaking, we may say that of the total value of the land and its fixtures, probably rather more than a quarter, though less than a third, was in the hands of this wealthy class.The England of that day was mainly agricultural, and consisted of more than four, but less than six million people, and in every agricultural community you would have the Lord, as he was legally called (the squire, as he was already conversationally termed), in possession of more demesne land than in any other country. On the average you found him, I say, owning in this absolute fashion rather more than a quarter, perhaps a third of the land of the village: in the towns the distribution was more even. Sometimes it was a private individual who was in this position, sometimes a corporation, but in every village you would have found this demesne land absolutely owned by the political head of the village, occupying a considerable proportion of its acreage. The rest, though distributed as property among the less fortunate of the population, and carrying with it houses and implements from which they could not be dispossessed, paid certain dues to the Lord, and, what was more, the Lord exercised local justice. This class of wealthy landowners had been also for now one hundred years the Justices upon whom local administration depended.There was no reason why this state of affairs should not gradually have led to the rise of the Peasant and the decay of the Lord. That is what happened in France, and it might perfectly well have happened here. A peasantry eager to purchase might have gradually extended their holdings at the expense of the demesne land, and to the distribution of property, which was already fairly complete, there might have been added another excellent element, namely, the more equal possession of that property. But any such process of gradual buying by the small man from the great, such as would seem natural to the temper of us European people, and such as has since taken place nearly everywhere in countries which were left free to act upon their popular instincts, was interrupted in this country by an artificial revolution of the most violent kind. This artificial revolution consisted in the seizing of the monastic lands by the Crown.It is important to grasp clearly the nature of this operation, for the whole economic future of England was to flow from it.Of thedemesnelands, and the power of local administration which they carried with them (a very important feature, as we shall see later), rather more than a quarter were in the hands of the Church; the Church was therefore the “Lord” of something over 25 per cent. say 28 per cent. or perhaps nearly 30 per cent. of English agricultural communities, and the overseers of a like proportion of all English agricultural produce. The Church was further the absolute owner in practice of something like 30 per cent. of the demesne land in the villages, and the receiver of something like 30 per cent. of the customary dues, etc., paid by the smaller owners to the greater. All this economic power lay until 1535 in the hands of Cathedral Chapters, communities of monks and nuns, educational establishments conducted by the clergy, and so forth.When the Monastic lands were confiscated by Henry VIII, not the whole of this vast economic influence was suddenly extinguished. The secular clergy remained endowed, and most of the educational establishments, though looted, retained some revenue; but though the whole 30 per cent. did not suffer confiscation, something well over 20 per cent. did, and the revolution effected by this vast operation was by far the most complete, the most sudden, and the most momentous of any that has taken place in the economic history of any European people.It was at firstintendedto retain this great mass of the means of production in the hands of the Crown: that must be clearly remembered by any student of the fortunes of England, and by all who marvel at the contrast between the old England and the new.Had that intention been firmly maintained, the English State and its government would have been the most powerful in Europe.The Executive (which in those days meant theKing) would have had a greater opportunity for crushing the resistance of the wealthy, for backing its political power with economic power, and for ordering the social life of its subjects than any other executive in Christendom.Had Henry VIII and his successors kept the land thus confiscated, the power of the French Monarchy, at which we are astonished, would have been nothing to the power of the English.The King of England would have had in his own hands an instrument of control of the most absolute sort. He would presumably have used it, as a strong central government always does, for the weakening of the wealthier classes, and to the indirect advantage of the mass of the people. At any rate, it would have been a very different England indeed from the England we know, if the King had held fast to his own after the dissolution of the monasteries.Now it is precisely here that the capital point in this great revolution appears.The King failed to keep the lands he had seized.That class of large landowners which already existed and controlled, as I have said, anything from a quarter to a third of the agricultural values of England, were too strong for the monarchy. They insisted upon land being granted to themselves, sometimes freely, sometimes for ridiculously small sums, and they were strong enough in Parliament, and through the local administrative power they had, to see that their demands were satisfied. Nothing that the Crown let go ever went back to the Crown, and year after year more and more of what had once been the monastic land became the absolute possession of the large landowners.Observe the effect of this. All over England men who already held in virtually absolute property from one-quarter to one-third of the soil and the ploughs and the barns of a village, became possessed in a very few years of a further great section of the means of production, which turned the scale wholly in their favour. They added to that third a new and extra fifth. They became at a blow the owners ofhalfthe land! In many centres of capital importance they had come to ownmorethan half the land. They were in many districts not only the unquestioned superiors, but the economic masters of the rest of the community. They could buy to the greatest advantage. They were strictlycompetitive, getting every shilling of due and of rent where the old clerical landlords had beencustomary—leaving much to the tenant. They began to fill the universities, the judiciary. The Crown less and less decided between great and small. More and more the great could decide in their own favour. They soon possessed by these operations the bulk of the means of production, and they immediately began the process of eating up the small independent men and gradually forming those great estates which, in the course of a few generations, became identical with the village itself. All over England you may notice that the great squires’ houses date from this revolution or after it. The manorial house, the house of the local great man as it was in the Middle Ages, survives here and there to show of what immense effect this revolution was. The low-timbered place with its steadings and outbuildings, only a larger farmhouse among the other farmhouses, is turned after the Reformation and thenceforward into a palace. Save where great castles (which were only held of the Crown and not owned) made an exception, the pre-Reformation gentry lived as men richer than, but not the masters of, other farmers around them.Afterthe Reformation there began to arise all over England those great “country houses” which rapidly became the typical centres of English agricultural life.The process was in full swing before Henry died. Unfortunately for England, he left as his heir a sickly child, during the six years of whose reign, from 1547 to 1553, the loot went on at an appalling rate. When he died and Mary came to the throne it was nearly completed. A mass of new families had arisen, wealthy out of all proportion to anything which the older England had known, and bound by a common interest to the older families which had joined in the grab. Every single man who sat in Parliament for a country required his price for voting the dissolution of the monasteries; every single man received it. A list of the members of the Dissolution Parliament is enough to prove this, and, apart from their power in Parliament, this class had a hundred other ways of insisting on their will. The Howards (already of some lineage), the Cavendishes, the Cecils, the Russels, and fifty other new families thus rose upon the ruins of religion; and the process went steadily on until, about one hundred years after its inception, the whole face of England was changed.In the place of a powerful Crown disposing of revenues far greater than that of any subject, you had a Crown at its wit’s end for money, and dominated by subjects some of whom were its equals in wealth, and who could, especially through the action of Parliament (which they now controlled), do much what they willed with Government.In other words, by the first third of the seventeenth century, by 1630—40, the economic revolution was finally accomplished, and the new economic reality thrusting itself upon the old traditions of England was a powerful oligarchy of large owners overshadowing an impoverished and dwindled monarchy.Other causes had contributed to this deplorable result. The change in the value of money had hit the Crown very hard;2the peculiar history of the Tudor family, their violent passions, their lack of resolution and of any continuous policy, to some extent the character of Charles I himself, and many another subsidiary cause may be quoted. But the great main fact upon which the whole thing is dependent is the fact that the Monastic Lands, at least a fifth of the wealth of the country, had been transferred to the great landowners, and that this transference had tipped the scale over entirely in their favour as against the peasantry.The diminished and impoverished Crown could no longer stand. It fought against the new wealth, the struggle of the Civil Wars; it was utterly defeated; and when a final settlement was arrived at in 1660, you have all the realities of power in the hands of a small powerful class of wealthy men, the King still surrounded by the forms and traditions of his old power, but in practice a salaried puppet. And in that economic world which underlies all political appearances, the great dominating note was that a few wealthy families had got hold of the bulk of the means of production in England, while the same families exercised all local administrative power and were moreover the Judges, the Higher Education, the Church, and the generals. They quite overshadowed what was left of central government in this country.Take, as a starting-point for what followed, the date 1700. By that time more than half of the English were dispossessed of capital and of land. Not one man in two, even if you reckon the very small owners, inhabited a house of which he was the secure possessor, or tilled land from which he could not be turned off.Such a proportion may seem to us to-day a wonderfully free arrangement, and certainly if nearly one-half of our population were possessed of the means of production, we should be in a very different situation from that in which we find ourselves. But the point to seize is that, though the bad business was very far from completion in or about the year 1700, yet by that date England had already becomeCapitalist. She had already permitted a vast section of her population to becomeproletarian, and it is this andnotthe so-called “Industrial Revolution,” a later thing, which accounts for the terrible social condition in which we find ourselves to-day.How true this is what I still have to say in this section will prove.In an England thus already cursed with a very large proletariat class, and in an England already directed by a dominating Capitalist class, possessing the means of production, there came a great industrial development.Had that industrial development come upon a people economically free, it would have taken a co-operative form. Coming as it did upon a people which had already largely lost its economic freedom, it took at its very origin aCapitalistform, and this form it has retained, expanded, and perfected throughout two hundred years.It was in England that the Industrial System arose. It was in England that all its traditions and habits were formed; and because the England in which it arose was already a Capitalist England, modern Industrialism, wherever you see it at work to-day, having spread from England, has proceeded upon the Capitalist model.It was in 1705 that the first practical steam-engine, Newcomen’s, was set to work. The life of a man elapsed before this invention was made, by Watt’s introduction of the condenser, into the great instrument of production which has transformed our industry—but in those sixty years all the origins of the Industrial System are to be discovered. It was just before Watt’s patent that Hargreaves’ spinning-jenny appeared. Thirty years earlier, Abraham Darby of Colebrook Dale, at the end of a long series of experiments which had covered more than a century, smelted iron-ore successfully with coke. Not twenty years later, King introduced the flying shuttle, the first great improvement in the hand-loom; and in general the period covered by such a life as that of Dr Johnson, born just after Newcomen’s engine was first set working, and dying seventy-four years afterwards, when the Industrial System was in full blast, covers that great transformation of England. A man who, as a child, could remember the last years of Queen Anne, and who lived to the eve of the French Revolution, saw passing before his eyes the change which transformed English society and has led it to the expansion and peril in which we see it to-day.What was the characteristic mark of that half-century and more? Why did the new inventions give us the form of society now known and hated under the name of Industrial? Why did the vast increase in the powers of production, in population and in accumulation of wealth, turn the mass of Englishmen into a poverty-stricken proletariat, cut off the rich from the rest of the nation, and develop to the full all the evils which we associate with the Capitalist State?To that question an answer almost as universal as it is unintelligent has been given. That answer is not only unintelligent but false, and it will be my business here to show how false it is. The answer so provided in innumerable textbooks, and taken almost as commonplace in our universities, is that the new methods of production—the new machinery, the new implements—fatally and of themselves developed a Capitalist State in which a few should own the means of production and the mass should be proletariat. The new instruments, it is pointed out, were on so vastly greater a scale than the old, and were so much more expensive, that the small man could not afford them; while the rich man, who could afford them, ate up by his competition, and reduced from the position of a small owner to that of a wage-earner, his insufficiently equipped competitor who still attempted to struggle on with the older and cheaper tools. To this (we are told) the advantages of concentration were added in favour of the large owner against the small. Not only were the new instruments expensive almost in proportion to their efficiency, but, especially after the introduction of steam, they were efficient in proportion to their concentration in few places and under the direction of a few men. Under the effect of such false arguments as these we have been taught to believe that the horrors of the Industrial System were a blind and necessary product of material and impersonal forces, and that wherever the steam engine, the power loom, the blast furnace and the rest were introduced, there fatally would soon appear a little group of owners exploiting a vast majority of the dispossessed.It is astonishing that a statement so unhistorical should have gained so general a credence. Indeed, were the main truths of English history taught in our schools and universities to-day, were educated men familiar with the determining and major facts of the national past, such follies could never have taken root. The vast growth of the proletariat, the concentration of ownership into the hands of a few owners, and the exploitation by those owners of the mass of the community, had no fatal or necessary connection with the discovery of new and perpetually improving methods of production. The evil proceeded indirect historical sequence, proceeded patently and demonstrably, from the fact that England, the seed-plot of the Industrial System, wasalreadycaptured by a wealthy oligarchybeforethe series of great discoveries began.Consider in what way the Industrial System developed upon Capitalist lines. Why were a few rich men put with such ease into possession of the new methods? Why was it normal and natural in their eyes and in that of contemporary society that those who produced the new wealth with the new machinery should be proletarian and dispossessed? Simply because the England upon which the new discoveries had come wasalreadyan England owned as to its soil and accumulations of wealth by a small minority: it wasalreadyan England in which perhaps half of the whole population was proletarian, and a medium for exploitation ready to hand.When any one of the new industries was launched it had to becapitalised; that is, accumulated wealth from some source or other had to be found which would support labour in the process of production until that process should be complete. Someone must find the corn and the meat and the housing and the clothing by which should be supported, between the extraction of the raw material and the moment when the consumption of the finished article could begin, the human agents which dealt with that raw material and turned it into the finished product. Had property been well distributed, protected by co-operative guilds fenced round and supported by custom and by the autonomy of great artisan corporations, those accumulations of wealth, necessary for the launching of each new method of production and for each new perfection of it, would have been discovered in the mass of small owners.Theircorporations,theirlittle parcels of wealth combined would have furnished thecapitalisationrequired for the new processes, and men already owners would, as one invention succeeded another, have increased the total wealth of the community without disturbing the balance of distribution. There is no conceivable link in reason or in experience which binds the capitalisation of a new process with the idea of a few employing owners and a mass of employed non-owners working at a wage. Such great discoveries coming in a society like that of the thirteenth century would have blest and enriched mankind. Coming upon the diseased moral conditions of the eighteenth century in this country, they proved a curse.To whom could the new industry turn for capitalisation? The small owner had already largely disappeared. The corporate life and mutual obligations which had supported him and confirmed him in his property had been broken to pieces by no “economic development,” but by the deliberate action of the rich. He was ignorant because his schools had been taken from him and the universities closed to him. He was the more ignorant because the common life which once nourished his social sense and the co-operative arrangements which had once been his defence had disappeared. When you sought an accumulation of corn, of clothing, of housing, of fuel as the indispensable preliminary to the launching of your new industry; when you looked round for someone who could find the accumulated wealth necessary for these considerable experiments, you had to turn to the class which had already monopolised the bulk of the means of production in England. The rich men alone could furnish you with those supplies.Nor was this all. The supplies once found and the adventure “capitalised,” that form of human energy which lay best to hand, which was indefinitely exploitable, weak, ignorant, and desperately necessitous, ready to produce for you upon almost any terms, and glad enough if you would only keep it alive, was the existing proletariat which the new plutocracy had created when, in cornering the wealth of the country after the Reformation, they had thrust out the mass of Englishmen from the possession of implements, of houses, and of land.The rich class, adopting some new process of production for its private gain, worked it upon those lines of mere competition which its avarice had already established. Co-operative tradition was dead. Where would it find its cheapest labour? Obviously among the proletariat—not among the remaining small owners. What class would increase under the new wealth? Obviously the proletariat again, without responsibilities, with nothing to leave to its progeny; and as they swelled the capitalist’s gain, they enabled him with increasing power to buy out the small owner and send him to swell by another tributary the proletarian mass.It was upon this account that the Industrial Revolution, as it is called, took in its very origins the form which has made it an almost unmixed curse for the unhappy society in which it has flourished. The rich, already possessed of the accumulations by which that industrial change could alone be nourished, inherited all its succeeding accumulations of implements and all its increasing accumulations of subsistence. The factory system, starting upon a basis of capitalist and proletariat, grew in the mould which had determined its origins. With every new advance the capitalist looked for proletariat grist to feed the productive mill. Every circumstance of that society, the form in which the laws that governed ownership and profit were cast, the obligations of partners, the relations bet ween “master” and “man,” directly made for the indefinite expansion of a subject, formless, wage-earning class controlled by a small body of owners, which body would tend to become smaller and richer still, and to be possessed of power ever greater and greater as the bad business unfolded.The spread of economic oligarchy was everywhere, and not in industry alone. The great landlords destroyed deliberately and of set purpose and to their own ad vantage the common rights over common land. The small plutocracy with which they were knit up, and with whose mercantile elements they were now fused, directed everything to its own ends. That strong central government which should protect the community against the rapacity of a few had gone generations before. Capitalism triumphant wielded all the mechanism of legislation and of information too. It still holds them; and there is not an example of so-called “Social Reform” to-day which is not demonstrably (though often subconsciously) directed to the further entrenchment and confirmation of an industrial society in which it is taken for granted that a few shall own, that the vast majority shall live at a wage under them, and that all the bulk of Englishmen may hope for is the amelioration of their lot by regulations and by control from above—but not by property; not by freedom.We all feel—and those few of us who have analysed the matter not only feel but know—that the Capitalist society thus gradually developed from its origins in the capture of the land four hundred years ago has reached its term. It is almost self-evident that it cannot continue in the form which now three generations have known, and it is equally self-evident that some solution must be found for the intolerable and increasing instability with which it has poisoned our lives. But before considering the solutions variously presented by various schools of thought, I shall in my next section show how and why the English Capitalist Industrial System is thus intolerably unstable and consequently presents an acute problem which must be solved under pain of social death.It must be noted that modern Industrialism has spread to many other centres from England. It bears everywhere the features stamped upon it by its origin in this country.
With the close of the middle ages the societies of Western Christendom and England among the rest were economically free.
Property was an institution native to the State and enjoyed by the great mass of its citizens. Co-operative institutions, voluntary regulations of labour, restricted the completely independent use of property by its owners only in order to keep that institution intact and to prevent the absorption of small property by great.
This excellent state of affairs which we had reached after many centuries of Christian development, and in which the old institution of slavery had been finally eliminated from Christendom, did not everywhere survive. In England in particular it was ruined. The seeds of the disaster were sown in the sixteenth century. Its first apparent effects came to light in the seventeenth. During the eighteenth century England came to be finally, though insecurely, established upon a proletarian basis, that is, it had already become a society of rich men possessed of the means of production on the one hand, and a majority dispossessed of those means upon the other. With the nineteenth century the evil plant had come to its maturity, and England had become before the close of that period a purely Capitalist State, the type and model of Capitalism for the whole world: with the means of production tightly held by a very small group of citizens, and the whole determining mass of the nation dispossessed of capital and land, and dispossessed, therefore, in all cases of security, and in many of sufficiency as well. The mass of Englishmen, still possessed of political, lacked more and more the elements of economic, freedom, and were in a worse posture than free citizens have ever found themselves before in the history of Europe.
By what steps did so enormous a catastrophe fall upon us?
The first step in the process consisted in the mishandling of a great economic revolution which marked the sixteenth century. The lands and the accumulated wealth of the monasteries were taken out of, the hands of their old possessors with the intention of vesting them in the Crown—but they passed, as a fact, not into the hands of the Crown, but into the hands of an already wealthy section of the community who, after the change was complete, became in the succeeding hundred years the governing power of England.
This is what happened:—
The England of the early sixteenth century, the England over which Henry VIII inherited his powerful Crown in youth, though it was an England in which the great mass of men owned the land they tilled and the houses in which they dwelt, and the implements with which they worked, was yet an England in which these goods, though widely distributed, were distributed unequally.
Then, as now, the soil and its fixtures were the basis of all wealth, but the proportion between the value of the soil and its fixtures and the value of other means of production (implements, stores of clothing and of subsistence, etc.) was different from what it is now. The land and the fixtures upon it formed a very much larger fraction of the totality of the means of production than they do to-day. They represent to-day not one-half the total means of production of this country, and though they are the necessary foundation for all wealth production, yet our great machines, our stores of food and clothing, our coal and oil, our ships and the rest of it, come to more than the true value of the land and of the fixtures upon the land: they come to more than the arable soil and the pasture, the constructional value of the houses, wharves and docks, and so forth. In the early sixteenth century the land and the fixtures upon it came, upon the contrary, to very much more than all other forms of wealth combined.
Now this form of wealth was here, more than in any other Western European country, already in the hands of a wealthy land-owning class at the end of the Middle Ages.
It is impossible to give exact statistics, because none were gathered, and we can only make general statements based upon inference and research. But, roughly speaking, we may say that of the total value of the land and its fixtures, probably rather more than a quarter, though less than a third, was in the hands of this wealthy class.
The England of that day was mainly agricultural, and consisted of more than four, but less than six million people, and in every agricultural community you would have the Lord, as he was legally called (the squire, as he was already conversationally termed), in possession of more demesne land than in any other country. On the average you found him, I say, owning in this absolute fashion rather more than a quarter, perhaps a third of the land of the village: in the towns the distribution was more even. Sometimes it was a private individual who was in this position, sometimes a corporation, but in every village you would have found this demesne land absolutely owned by the political head of the village, occupying a considerable proportion of its acreage. The rest, though distributed as property among the less fortunate of the population, and carrying with it houses and implements from which they could not be dispossessed, paid certain dues to the Lord, and, what was more, the Lord exercised local justice. This class of wealthy landowners had been also for now one hundred years the Justices upon whom local administration depended.
There was no reason why this state of affairs should not gradually have led to the rise of the Peasant and the decay of the Lord. That is what happened in France, and it might perfectly well have happened here. A peasantry eager to purchase might have gradually extended their holdings at the expense of the demesne land, and to the distribution of property, which was already fairly complete, there might have been added another excellent element, namely, the more equal possession of that property. But any such process of gradual buying by the small man from the great, such as would seem natural to the temper of us European people, and such as has since taken place nearly everywhere in countries which were left free to act upon their popular instincts, was interrupted in this country by an artificial revolution of the most violent kind. This artificial revolution consisted in the seizing of the monastic lands by the Crown.
It is important to grasp clearly the nature of this operation, for the whole economic future of England was to flow from it.
Of thedemesnelands, and the power of local administration which they carried with them (a very important feature, as we shall see later), rather more than a quarter were in the hands of the Church; the Church was therefore the “Lord” of something over 25 per cent. say 28 per cent. or perhaps nearly 30 per cent. of English agricultural communities, and the overseers of a like proportion of all English agricultural produce. The Church was further the absolute owner in practice of something like 30 per cent. of the demesne land in the villages, and the receiver of something like 30 per cent. of the customary dues, etc., paid by the smaller owners to the greater. All this economic power lay until 1535 in the hands of Cathedral Chapters, communities of monks and nuns, educational establishments conducted by the clergy, and so forth.
When the Monastic lands were confiscated by Henry VIII, not the whole of this vast economic influence was suddenly extinguished. The secular clergy remained endowed, and most of the educational establishments, though looted, retained some revenue; but though the whole 30 per cent. did not suffer confiscation, something well over 20 per cent. did, and the revolution effected by this vast operation was by far the most complete, the most sudden, and the most momentous of any that has taken place in the economic history of any European people.
It was at firstintendedto retain this great mass of the means of production in the hands of the Crown: that must be clearly remembered by any student of the fortunes of England, and by all who marvel at the contrast between the old England and the new.
Had that intention been firmly maintained, the English State and its government would have been the most powerful in Europe.
The Executive (which in those days meant theKing) would have had a greater opportunity for crushing the resistance of the wealthy, for backing its political power with economic power, and for ordering the social life of its subjects than any other executive in Christendom.
Had Henry VIII and his successors kept the land thus confiscated, the power of the French Monarchy, at which we are astonished, would have been nothing to the power of the English.
The King of England would have had in his own hands an instrument of control of the most absolute sort. He would presumably have used it, as a strong central government always does, for the weakening of the wealthier classes, and to the indirect advantage of the mass of the people. At any rate, it would have been a very different England indeed from the England we know, if the King had held fast to his own after the dissolution of the monasteries.
Now it is precisely here that the capital point in this great revolution appears.The King failed to keep the lands he had seized.That class of large landowners which already existed and controlled, as I have said, anything from a quarter to a third of the agricultural values of England, were too strong for the monarchy. They insisted upon land being granted to themselves, sometimes freely, sometimes for ridiculously small sums, and they were strong enough in Parliament, and through the local administrative power they had, to see that their demands were satisfied. Nothing that the Crown let go ever went back to the Crown, and year after year more and more of what had once been the monastic land became the absolute possession of the large landowners.
Observe the effect of this. All over England men who already held in virtually absolute property from one-quarter to one-third of the soil and the ploughs and the barns of a village, became possessed in a very few years of a further great section of the means of production, which turned the scale wholly in their favour. They added to that third a new and extra fifth. They became at a blow the owners ofhalfthe land! In many centres of capital importance they had come to ownmorethan half the land. They were in many districts not only the unquestioned superiors, but the economic masters of the rest of the community. They could buy to the greatest advantage. They were strictlycompetitive, getting every shilling of due and of rent where the old clerical landlords had beencustomary—leaving much to the tenant. They began to fill the universities, the judiciary. The Crown less and less decided between great and small. More and more the great could decide in their own favour. They soon possessed by these operations the bulk of the means of production, and they immediately began the process of eating up the small independent men and gradually forming those great estates which, in the course of a few generations, became identical with the village itself. All over England you may notice that the great squires’ houses date from this revolution or after it. The manorial house, the house of the local great man as it was in the Middle Ages, survives here and there to show of what immense effect this revolution was. The low-timbered place with its steadings and outbuildings, only a larger farmhouse among the other farmhouses, is turned after the Reformation and thenceforward into a palace. Save where great castles (which were only held of the Crown and not owned) made an exception, the pre-Reformation gentry lived as men richer than, but not the masters of, other farmers around them.Afterthe Reformation there began to arise all over England those great “country houses” which rapidly became the typical centres of English agricultural life.
The process was in full swing before Henry died. Unfortunately for England, he left as his heir a sickly child, during the six years of whose reign, from 1547 to 1553, the loot went on at an appalling rate. When he died and Mary came to the throne it was nearly completed. A mass of new families had arisen, wealthy out of all proportion to anything which the older England had known, and bound by a common interest to the older families which had joined in the grab. Every single man who sat in Parliament for a country required his price for voting the dissolution of the monasteries; every single man received it. A list of the members of the Dissolution Parliament is enough to prove this, and, apart from their power in Parliament, this class had a hundred other ways of insisting on their will. The Howards (already of some lineage), the Cavendishes, the Cecils, the Russels, and fifty other new families thus rose upon the ruins of religion; and the process went steadily on until, about one hundred years after its inception, the whole face of England was changed.
In the place of a powerful Crown disposing of revenues far greater than that of any subject, you had a Crown at its wit’s end for money, and dominated by subjects some of whom were its equals in wealth, and who could, especially through the action of Parliament (which they now controlled), do much what they willed with Government.
In other words, by the first third of the seventeenth century, by 1630—40, the economic revolution was finally accomplished, and the new economic reality thrusting itself upon the old traditions of England was a powerful oligarchy of large owners overshadowing an impoverished and dwindled monarchy.
Other causes had contributed to this deplorable result. The change in the value of money had hit the Crown very hard;2the peculiar history of the Tudor family, their violent passions, their lack of resolution and of any continuous policy, to some extent the character of Charles I himself, and many another subsidiary cause may be quoted. But the great main fact upon which the whole thing is dependent is the fact that the Monastic Lands, at least a fifth of the wealth of the country, had been transferred to the great landowners, and that this transference had tipped the scale over entirely in their favour as against the peasantry.
The diminished and impoverished Crown could no longer stand. It fought against the new wealth, the struggle of the Civil Wars; it was utterly defeated; and when a final settlement was arrived at in 1660, you have all the realities of power in the hands of a small powerful class of wealthy men, the King still surrounded by the forms and traditions of his old power, but in practice a salaried puppet. And in that economic world which underlies all political appearances, the great dominating note was that a few wealthy families had got hold of the bulk of the means of production in England, while the same families exercised all local administrative power and were moreover the Judges, the Higher Education, the Church, and the generals. They quite overshadowed what was left of central government in this country.
Take, as a starting-point for what followed, the date 1700. By that time more than half of the English were dispossessed of capital and of land. Not one man in two, even if you reckon the very small owners, inhabited a house of which he was the secure possessor, or tilled land from which he could not be turned off.
Such a proportion may seem to us to-day a wonderfully free arrangement, and certainly if nearly one-half of our population were possessed of the means of production, we should be in a very different situation from that in which we find ourselves. But the point to seize is that, though the bad business was very far from completion in or about the year 1700, yet by that date England had already becomeCapitalist. She had already permitted a vast section of her population to becomeproletarian, and it is this andnotthe so-called “Industrial Revolution,” a later thing, which accounts for the terrible social condition in which we find ourselves to-day.
How true this is what I still have to say in this section will prove.
In an England thus already cursed with a very large proletariat class, and in an England already directed by a dominating Capitalist class, possessing the means of production, there came a great industrial development.
Had that industrial development come upon a people economically free, it would have taken a co-operative form. Coming as it did upon a people which had already largely lost its economic freedom, it took at its very origin aCapitalistform, and this form it has retained, expanded, and perfected throughout two hundred years.
It was in England that the Industrial System arose. It was in England that all its traditions and habits were formed; and because the England in which it arose was already a Capitalist England, modern Industrialism, wherever you see it at work to-day, having spread from England, has proceeded upon the Capitalist model.
It was in 1705 that the first practical steam-engine, Newcomen’s, was set to work. The life of a man elapsed before this invention was made, by Watt’s introduction of the condenser, into the great instrument of production which has transformed our industry—but in those sixty years all the origins of the Industrial System are to be discovered. It was just before Watt’s patent that Hargreaves’ spinning-jenny appeared. Thirty years earlier, Abraham Darby of Colebrook Dale, at the end of a long series of experiments which had covered more than a century, smelted iron-ore successfully with coke. Not twenty years later, King introduced the flying shuttle, the first great improvement in the hand-loom; and in general the period covered by such a life as that of Dr Johnson, born just after Newcomen’s engine was first set working, and dying seventy-four years afterwards, when the Industrial System was in full blast, covers that great transformation of England. A man who, as a child, could remember the last years of Queen Anne, and who lived to the eve of the French Revolution, saw passing before his eyes the change which transformed English society and has led it to the expansion and peril in which we see it to-day.
What was the characteristic mark of that half-century and more? Why did the new inventions give us the form of society now known and hated under the name of Industrial? Why did the vast increase in the powers of production, in population and in accumulation of wealth, turn the mass of Englishmen into a poverty-stricken proletariat, cut off the rich from the rest of the nation, and develop to the full all the evils which we associate with the Capitalist State?
To that question an answer almost as universal as it is unintelligent has been given. That answer is not only unintelligent but false, and it will be my business here to show how false it is. The answer so provided in innumerable textbooks, and taken almost as commonplace in our universities, is that the new methods of production—the new machinery, the new implements—fatally and of themselves developed a Capitalist State in which a few should own the means of production and the mass should be proletariat. The new instruments, it is pointed out, were on so vastly greater a scale than the old, and were so much more expensive, that the small man could not afford them; while the rich man, who could afford them, ate up by his competition, and reduced from the position of a small owner to that of a wage-earner, his insufficiently equipped competitor who still attempted to struggle on with the older and cheaper tools. To this (we are told) the advantages of concentration were added in favour of the large owner against the small. Not only were the new instruments expensive almost in proportion to their efficiency, but, especially after the introduction of steam, they were efficient in proportion to their concentration in few places and under the direction of a few men. Under the effect of such false arguments as these we have been taught to believe that the horrors of the Industrial System were a blind and necessary product of material and impersonal forces, and that wherever the steam engine, the power loom, the blast furnace and the rest were introduced, there fatally would soon appear a little group of owners exploiting a vast majority of the dispossessed.
It is astonishing that a statement so unhistorical should have gained so general a credence. Indeed, were the main truths of English history taught in our schools and universities to-day, were educated men familiar with the determining and major facts of the national past, such follies could never have taken root. The vast growth of the proletariat, the concentration of ownership into the hands of a few owners, and the exploitation by those owners of the mass of the community, had no fatal or necessary connection with the discovery of new and perpetually improving methods of production. The evil proceeded indirect historical sequence, proceeded patently and demonstrably, from the fact that England, the seed-plot of the Industrial System, wasalreadycaptured by a wealthy oligarchybeforethe series of great discoveries began.
Consider in what way the Industrial System developed upon Capitalist lines. Why were a few rich men put with such ease into possession of the new methods? Why was it normal and natural in their eyes and in that of contemporary society that those who produced the new wealth with the new machinery should be proletarian and dispossessed? Simply because the England upon which the new discoveries had come wasalreadyan England owned as to its soil and accumulations of wealth by a small minority: it wasalreadyan England in which perhaps half of the whole population was proletarian, and a medium for exploitation ready to hand.
When any one of the new industries was launched it had to becapitalised; that is, accumulated wealth from some source or other had to be found which would support labour in the process of production until that process should be complete. Someone must find the corn and the meat and the housing and the clothing by which should be supported, between the extraction of the raw material and the moment when the consumption of the finished article could begin, the human agents which dealt with that raw material and turned it into the finished product. Had property been well distributed, protected by co-operative guilds fenced round and supported by custom and by the autonomy of great artisan corporations, those accumulations of wealth, necessary for the launching of each new method of production and for each new perfection of it, would have been discovered in the mass of small owners.Theircorporations,theirlittle parcels of wealth combined would have furnished thecapitalisationrequired for the new processes, and men already owners would, as one invention succeeded another, have increased the total wealth of the community without disturbing the balance of distribution. There is no conceivable link in reason or in experience which binds the capitalisation of a new process with the idea of a few employing owners and a mass of employed non-owners working at a wage. Such great discoveries coming in a society like that of the thirteenth century would have blest and enriched mankind. Coming upon the diseased moral conditions of the eighteenth century in this country, they proved a curse.
To whom could the new industry turn for capitalisation? The small owner had already largely disappeared. The corporate life and mutual obligations which had supported him and confirmed him in his property had been broken to pieces by no “economic development,” but by the deliberate action of the rich. He was ignorant because his schools had been taken from him and the universities closed to him. He was the more ignorant because the common life which once nourished his social sense and the co-operative arrangements which had once been his defence had disappeared. When you sought an accumulation of corn, of clothing, of housing, of fuel as the indispensable preliminary to the launching of your new industry; when you looked round for someone who could find the accumulated wealth necessary for these considerable experiments, you had to turn to the class which had already monopolised the bulk of the means of production in England. The rich men alone could furnish you with those supplies.
Nor was this all. The supplies once found and the adventure “capitalised,” that form of human energy which lay best to hand, which was indefinitely exploitable, weak, ignorant, and desperately necessitous, ready to produce for you upon almost any terms, and glad enough if you would only keep it alive, was the existing proletariat which the new plutocracy had created when, in cornering the wealth of the country after the Reformation, they had thrust out the mass of Englishmen from the possession of implements, of houses, and of land.
The rich class, adopting some new process of production for its private gain, worked it upon those lines of mere competition which its avarice had already established. Co-operative tradition was dead. Where would it find its cheapest labour? Obviously among the proletariat—not among the remaining small owners. What class would increase under the new wealth? Obviously the proletariat again, without responsibilities, with nothing to leave to its progeny; and as they swelled the capitalist’s gain, they enabled him with increasing power to buy out the small owner and send him to swell by another tributary the proletarian mass.
It was upon this account that the Industrial Revolution, as it is called, took in its very origins the form which has made it an almost unmixed curse for the unhappy society in which it has flourished. The rich, already possessed of the accumulations by which that industrial change could alone be nourished, inherited all its succeeding accumulations of implements and all its increasing accumulations of subsistence. The factory system, starting upon a basis of capitalist and proletariat, grew in the mould which had determined its origins. With every new advance the capitalist looked for proletariat grist to feed the productive mill. Every circumstance of that society, the form in which the laws that governed ownership and profit were cast, the obligations of partners, the relations bet ween “master” and “man,” directly made for the indefinite expansion of a subject, formless, wage-earning class controlled by a small body of owners, which body would tend to become smaller and richer still, and to be possessed of power ever greater and greater as the bad business unfolded.
The spread of economic oligarchy was everywhere, and not in industry alone. The great landlords destroyed deliberately and of set purpose and to their own ad vantage the common rights over common land. The small plutocracy with which they were knit up, and with whose mercantile elements they were now fused, directed everything to its own ends. That strong central government which should protect the community against the rapacity of a few had gone generations before. Capitalism triumphant wielded all the mechanism of legislation and of information too. It still holds them; and there is not an example of so-called “Social Reform” to-day which is not demonstrably (though often subconsciously) directed to the further entrenchment and confirmation of an industrial society in which it is taken for granted that a few shall own, that the vast majority shall live at a wage under them, and that all the bulk of Englishmen may hope for is the amelioration of their lot by regulations and by control from above—but not by property; not by freedom.
We all feel—and those few of us who have analysed the matter not only feel but know—that the Capitalist society thus gradually developed from its origins in the capture of the land four hundred years ago has reached its term. It is almost self-evident that it cannot continue in the form which now three generations have known, and it is equally self-evident that some solution must be found for the intolerable and increasing instability with which it has poisoned our lives. But before considering the solutions variously presented by various schools of thought, I shall in my next section show how and why the English Capitalist Industrial System is thus intolerably unstable and consequently presents an acute problem which must be solved under pain of social death.
It must be noted that modern Industrialism has spread to many other centres from England. It bears everywhere the features stamped upon it by its origin in this country.
Section FiveThe Capitalist State in Proportion as It Grows Perfect Grows UnstableFrom the historical digression which I have introduced by way of illustrating my subject in the last two sections I now return to the general discussion of my thesis and to the logical process by which it may be established.The Capitalist State is unstable, and indeed more properly a transitory phase lying between two permanent and stable states of society.In order to appreciate why this is so, let us recall the definition of the Capitalist State:—“A society in which the ownership of the means of production is confined to a body of free citizens, not large enough to make up properly a general character of that society, while the rest are dispossessed of the means of production, and are therefore proletarian, we callCapitalist.”Note the several points of such a state of affairs. You have private ownership; but it is not private ownership distributed in many hands and thus familiar as an institution to society as a whole. Again, you have the great majority dispossessed but at the same time citizens, that is, men politically free to act, though economically impotent; again, though it is but an inference from our definition, it is a necessary inference that there will be under Capitalism a conscious, direct, and plannedexploitationof the majority, the free citizens who do not own by the minority who are owners. For wealth must be produced: the whole of that community must live: and the possessors can make such terms with the non-possessors as shall make it certain that a portion of what the non-possessors have produced shall go to the possessors.A society thus constituted cannot endure. It cannot endure because it is subject to two very severe strains: strains which increase in severity in proportion as that society becomes more thoroughly Capitalist. The first of these strains arises from the divergence between the moral theories upon which the State reposes and the social facts which those moral theories attempt to govern. The second strain arises from the insecurity to which Capitalism condemns the great mass of society, and the general character of anxiety and peril which it imposes upon all citizens, but in particular upon the majority, which consists, under Capitalism, of dispossessed free men.Of these two strains it is impossible to say which is the gravest. Either would be enough to destroy a social arrangement in which it was long present. The two combined make that destruction certain; and there is no longer any doubt that Capitalist society must transform itself into some other and more stable arrangement. It is the object of these pages to discover what that stable arrangement will probably be.We say that there is a moral strain already intolerably severe and growing more severe with every perfection of Capitalism.This moral strain comes from a contradiction between the realities of Capitalist and the moral base of our laws and traditions.The moral base upon which our laws are still administered and our conventions raised presupposes a state composed of free citizens. Our laws defend property as a normal institution with which all citizens are acquainted, and which all citizens respect. It punishes theft as an abnormal incident only occurring when, through evil motives, one free citizen acquires the property of another without his knowledge and against his will. It punishes fraud as another abnormal incident in which, from evil motives, one free citizen induces another to part with his property upon false representations. It enforces contract, the sole moral base of which is the freedom of the two contracting parties, and the power of either, if it so please him, not to enter into a contract which, once entered into, must be enforced. It gives to an owner the power to leave his property by will, under the conception that such ownership and such passage of property (to natural heirs as a rule, but exceptionally to any other whom the testator may point out) is the normal operation of a society generally familiar with such things, and finding them part of the domestic life lived by the mass of its citizens. It casts one citizen in damages if by any wilful action he has caused loss to another—for it presupposes him able to pay.The sanction upon which social life reposes is, in our moral theory, the legal punishment enforceable in our Courts, and the basis presupposed for the security and material happiness of our citizens is the possession of goods which shall guarantee us from anxiety and permit us an independence of action in the midst of our fellowmen.Now contrast all this, the moral theory upon which society is still perilously conducted, the moral theory to which Capitalism itself turns for succour when it is attacked, contrast, I say, its formulæ and its presuppositions with the social reality of a Capitalist State such as is England to-day.Property remains as an instinct perhaps with most of the citizens; as an experience and a reality it is unknown to nineteen out of twenty. One hundred forms of fraud, the necessary corollary of unrestrained competition between a few and of unrestrained avarice as the motive controlling production, are not or cannot be punished: petty forms of violence in theft and of cunning in fraud the laws can deal with, but they cannot deal with these alone. Our legal machinery has become little more than an engine for protecting the few owners against the necessities, the demands, or the hatred of the mass of their dispossessed fellow-citizens. The vast bulk of so-called “free” contracts are to-day leonine contracts: arrangements which one man was free to take or to leave, but which the other man was not free to take or to leave, because the second had for his alternative starvation.Most important of all, the fundamental social fact of our movement, far more important than any security afforded by law, or than any machinery which the State can put into action, is the fact that livelihood is at the will of the possessors. It can be granted by the possessors to the non-possessors, or it can be withheld. The real sanction in our society for the arrangements by which it is conducted is not punishment enforceable by the Courts, but the withholding oflivelihoodfrom the dispossessed by the possessors. Most men now fear the loss of employment more than they fear legal punishment, and the discipline under which men are coerced in their modern forms of activity in England is the fear of dismissal. The true master of the Englishman to-day is not the Sovereign nor the officers of State, nor, save indirectly, the laws; his true master is the Capitalist.Of these main truths everyone is aware; and anyone who sets out to deny them does so to-day at the peril of his reputation either for honesty or for intelligence.If it be asked why things have come to a head so late (Capitalism having been in growth for so long), the answer is that England, even now the most completely Capitalist State of the modern world, did not itself become a completely Capitalist State until the present generation. Within the memory of men now living half England was agricultural, with relations domestic rather than competitive between the various human factors to production.This moral strain, therefore, arising from the divergence between what our laws and moral phrases pretend, and what our society actually is, makes of that society an utterly unstable thing.This spiritual thesis is of far greater gravity than the narrow materialism of a generation now passing might imagine. Spiritual conflict is more fruitful of instability in the State than conflict of any other kind, and there is acute spiritual conflict, conflict in every man’s conscience and ill-ease throughout the commonwealth when the realities of society are divorced from the moral base of its institution.The second strain which we have noted in Capitalism, its second element of instability, consists in the fact that Capitalism destroys security.Experience is enough to save us any delay upon this main point of our matter. But even without experience we could reason with absolute certitude from the very nature of Capitalism that its chief effect would be the destruction of security in human life.Combine these two elements: the ownership of the means of production by a very few; the political freedom of owners and non-owners alike. There follows immediately from that combination a competitive market wherein the labour of the non-owner fetches just what it is worth, not as full productive power, but as productive power which will leave a surplus to the Capitalist. It fetches nothing when the labourer cannot work, more in proportion to the pace at which he is driven; less in middle age than in youth; less in old age than in middle age; nothing in sickness; nothing in despair.A man in a position to accumulate (the normal result of human labour), a man founded upon property in sufficient amount and in established form is no more productive in his non-productive moments than is a proletarian; but his life is balanced and regulated by his reception of rent and interest as well as wages. Surplus values come to him, and are the fly-wheel balancing the extremes of his life and carrying him over his bad times. With a proletarian it cannot be so. The aspect from Capital looks at a human being whose labour it proposes to purchase cuts right across that normal aspect of human life from which we all regard our own affections, duties, and character. A man thinks of himself, of his chances and of his security along the line of his own individual existence from birth to death. Capital purchasing his labour (and not the man himself) purchases but a cross-section of his life, his moments of activity. For the rest, he must fend for himself; but to fend for yourself when you have nothing is to starve.As a matter of fact, where a few possess the means of production perfectly free political conditions are impossible. A perfect Capitalist State cannot exist, though we have come nearer to it in modern England than other and more fortunate nations had thought possible. In the perfect Capitalist State there would be no food available for the non-owner save when he was actually engaged in Production, and that absurdity would, by quickly ending all human lives save those of the owners, put a term to the arrangement. If you left men completely free under a Capitalist system, there would be so heavy a mortality from starvation as would dry up the sources of labour in a very short time.Imagine the dispossessed to be ideally perfect cowards, the possessors to consider nothing whatsoever except the buying of their labour in the cheapest market—and the system would break down from the death of children and of out-o’-works and of women. You would not have a State in mere decline such as ours is. You would have a State manifestly and patently perishing.As a fact, of course, Capitalism cannot proceed to its own logical extreme. So long as the political freedom of all citizens is granted the freedom of the few possessors of food to grant or withhold it, of the many non-possessors to strike any bargain at all, lest they lack it: to exercise such freedom fully is to starve the very young, the old, the impotent, and the despairing to death. Capitalism must keep alive, by non Capitalist methods, great masses of the population who would otherwise starve to death; and that is what Capitalism was careful to do to an increasing extent as it got a stronger and a stronger grip upon the English people. Elizabeth’s Poor Law at the beginning of the business, the Poor Law of 1834, coming at a moment when nearly half England had passed into the grip of Capitalism, are original and primitive instances: there are to-day a hundred others.Though this cause of insecurity—the fact that the possessors have no direct incentive to keep men alive—is logically the most obvious, and always the most enduring under a Capitalist system, there is another cause more poignant in its effect upon human life. That other cause is the competitive anarchy in production which restricted ownership coupled with freedom involves. Consider what is involved by the very process of production where the implements and the soil are in the hands of a few whose motive for causing the proletariat to produce is not the use of the wealth created but the enjoyment by those possessors of surplus value or “profit.”If full political freedom be allowed to any two such possessors of implements and stores, each will actively watch his market, attempt to undersell the other, tend to overproduce at the end of some season of extra demand for his article, thus glut the market only to suffer a period of depression afterwards—and so forth. Again, the Capitalist, free, individual director of production, will miscalculate; sometimes he will fail, and his works will be shut down. Again, a mass of isolated, imperfectly instructed competing units cannot but direct their clashing efforts at an enormous waste, and that waste will fluctuate. Most commissions, most advertisements, most parades, are examples of this waste. If this waste of effort could be made a constant, the parasitical employment it afforded would be a constant too. But of its nature it is a most inconstant thing, and the employment it affords is therefore necessarily precarious. The concrete translation of this is the insecurity of the commercial traveller, the advertising agent, the insurance agent, and every form of touting and cozening which competitive Capitalism carries with it.Now here again, as in the case of the insecurity produced by age and sickness, Capitalism cannot be pursued to its logical conclusion, and it is the element of freedom which suffers. Competition is, as a fact, restricted to an increasing extent by an understanding between the competitors, accompanied, especially in this country, by the ruin of the smaller competitor through secret conspiracies entered into by the larger men, and supported by the secret political forces of the State.3In a word, Capitalism, proving almost as unstable to the owners as to the non-owners, is tending towards stability by losing its essential character of political freedom. No better proof of the instability of Capitalism as a system could be desired.Take any one of the numerous Trusts which now control English industry, and have made of modern England the type, quoted throughout the Continent, of artificial monopolies. If the full formula of Capitalism were accepted by our Courts and our executive statesmen, anyone could start a rival business, undersell those Trusts and shatter the comparative security they afford to industry within their field. The reason that no one does this is that political freedom is not, as a fact, protected here by the Courts in commercial affairs. A man attempting to compete with one of our great English Trusts would find himself at once undersold. He might, by all the spirit of European law for centuries, indict those who would ruin him, citing them for a conspiracy in restraint of trade; of this conspiracy he would find the judge and the politicians most heartily in support.But it must always be remembered that these conspiracies in restraint of trade which are the mark of modern England are in themselves a mark of the transition from the true Capitalist phase to another.Under the essential conditions of Capitalism—under a perfect political freedom—such conspiracies would be punished by the Courts for what they are: to wit, a contravention of the fundamental doctrine of political liberty. For this doctrine, while it gives any man the right to make any contract he chooses with any labourer and offer the produce at such prices as he sees fit, also involves the protection of that liberty by the punishment of any conspiracy that may have monopoly for its object. If such perfect freedom is no longer attempted, if monopolies are permitted and fostered, it is because the unnatural strain to which freedom, coupled with restricted ownership, gives rise, the insecurity of its mere competition, the anarchy of its productive methods have at last proved intolerable.I have already delayed more than was necessary in this section upon the causes which render a Capitalist State essentially unstable.I might have treated the matter empirically, taking for granted the observation which all my readers must have made, that Capitalism is as a fact doomed, and that the Capitalist State has already passed into its first phase of transition.We are clearly no longer possessed of that absolutely political freedom which true Capitalism essentially demands. The insecurity involved, coupled with the divorce between our traditional morals and the facts of society, have already introduced such novel features as the permission of conspiracy among both possessors and non-possessors, the compulsory provision of security through State action, and all these reforms, implicit or explicit, the tendency of which I am about to examine.
From the historical digression which I have introduced by way of illustrating my subject in the last two sections I now return to the general discussion of my thesis and to the logical process by which it may be established.
The Capitalist State is unstable, and indeed more properly a transitory phase lying between two permanent and stable states of society.
In order to appreciate why this is so, let us recall the definition of the Capitalist State:—
“A society in which the ownership of the means of production is confined to a body of free citizens, not large enough to make up properly a general character of that society, while the rest are dispossessed of the means of production, and are therefore proletarian, we callCapitalist.”
Note the several points of such a state of affairs. You have private ownership; but it is not private ownership distributed in many hands and thus familiar as an institution to society as a whole. Again, you have the great majority dispossessed but at the same time citizens, that is, men politically free to act, though economically impotent; again, though it is but an inference from our definition, it is a necessary inference that there will be under Capitalism a conscious, direct, and plannedexploitationof the majority, the free citizens who do not own by the minority who are owners. For wealth must be produced: the whole of that community must live: and the possessors can make such terms with the non-possessors as shall make it certain that a portion of what the non-possessors have produced shall go to the possessors.
A society thus constituted cannot endure. It cannot endure because it is subject to two very severe strains: strains which increase in severity in proportion as that society becomes more thoroughly Capitalist. The first of these strains arises from the divergence between the moral theories upon which the State reposes and the social facts which those moral theories attempt to govern. The second strain arises from the insecurity to which Capitalism condemns the great mass of society, and the general character of anxiety and peril which it imposes upon all citizens, but in particular upon the majority, which consists, under Capitalism, of dispossessed free men.
Of these two strains it is impossible to say which is the gravest. Either would be enough to destroy a social arrangement in which it was long present. The two combined make that destruction certain; and there is no longer any doubt that Capitalist society must transform itself into some other and more stable arrangement. It is the object of these pages to discover what that stable arrangement will probably be.
We say that there is a moral strain already intolerably severe and growing more severe with every perfection of Capitalism.
This moral strain comes from a contradiction between the realities of Capitalist and the moral base of our laws and traditions.
The moral base upon which our laws are still administered and our conventions raised presupposes a state composed of free citizens. Our laws defend property as a normal institution with which all citizens are acquainted, and which all citizens respect. It punishes theft as an abnormal incident only occurring when, through evil motives, one free citizen acquires the property of another without his knowledge and against his will. It punishes fraud as another abnormal incident in which, from evil motives, one free citizen induces another to part with his property upon false representations. It enforces contract, the sole moral base of which is the freedom of the two contracting parties, and the power of either, if it so please him, not to enter into a contract which, once entered into, must be enforced. It gives to an owner the power to leave his property by will, under the conception that such ownership and such passage of property (to natural heirs as a rule, but exceptionally to any other whom the testator may point out) is the normal operation of a society generally familiar with such things, and finding them part of the domestic life lived by the mass of its citizens. It casts one citizen in damages if by any wilful action he has caused loss to another—for it presupposes him able to pay.
The sanction upon which social life reposes is, in our moral theory, the legal punishment enforceable in our Courts, and the basis presupposed for the security and material happiness of our citizens is the possession of goods which shall guarantee us from anxiety and permit us an independence of action in the midst of our fellowmen.
Now contrast all this, the moral theory upon which society is still perilously conducted, the moral theory to which Capitalism itself turns for succour when it is attacked, contrast, I say, its formulæ and its presuppositions with the social reality of a Capitalist State such as is England to-day.
Property remains as an instinct perhaps with most of the citizens; as an experience and a reality it is unknown to nineteen out of twenty. One hundred forms of fraud, the necessary corollary of unrestrained competition between a few and of unrestrained avarice as the motive controlling production, are not or cannot be punished: petty forms of violence in theft and of cunning in fraud the laws can deal with, but they cannot deal with these alone. Our legal machinery has become little more than an engine for protecting the few owners against the necessities, the demands, or the hatred of the mass of their dispossessed fellow-citizens. The vast bulk of so-called “free” contracts are to-day leonine contracts: arrangements which one man was free to take or to leave, but which the other man was not free to take or to leave, because the second had for his alternative starvation.
Most important of all, the fundamental social fact of our movement, far more important than any security afforded by law, or than any machinery which the State can put into action, is the fact that livelihood is at the will of the possessors. It can be granted by the possessors to the non-possessors, or it can be withheld. The real sanction in our society for the arrangements by which it is conducted is not punishment enforceable by the Courts, but the withholding oflivelihoodfrom the dispossessed by the possessors. Most men now fear the loss of employment more than they fear legal punishment, and the discipline under which men are coerced in their modern forms of activity in England is the fear of dismissal. The true master of the Englishman to-day is not the Sovereign nor the officers of State, nor, save indirectly, the laws; his true master is the Capitalist.
Of these main truths everyone is aware; and anyone who sets out to deny them does so to-day at the peril of his reputation either for honesty or for intelligence.
If it be asked why things have come to a head so late (Capitalism having been in growth for so long), the answer is that England, even now the most completely Capitalist State of the modern world, did not itself become a completely Capitalist State until the present generation. Within the memory of men now living half England was agricultural, with relations domestic rather than competitive between the various human factors to production.
This moral strain, therefore, arising from the divergence between what our laws and moral phrases pretend, and what our society actually is, makes of that society an utterly unstable thing.
This spiritual thesis is of far greater gravity than the narrow materialism of a generation now passing might imagine. Spiritual conflict is more fruitful of instability in the State than conflict of any other kind, and there is acute spiritual conflict, conflict in every man’s conscience and ill-ease throughout the commonwealth when the realities of society are divorced from the moral base of its institution.
The second strain which we have noted in Capitalism, its second element of instability, consists in the fact that Capitalism destroys security.
Experience is enough to save us any delay upon this main point of our matter. But even without experience we could reason with absolute certitude from the very nature of Capitalism that its chief effect would be the destruction of security in human life.
Combine these two elements: the ownership of the means of production by a very few; the political freedom of owners and non-owners alike. There follows immediately from that combination a competitive market wherein the labour of the non-owner fetches just what it is worth, not as full productive power, but as productive power which will leave a surplus to the Capitalist. It fetches nothing when the labourer cannot work, more in proportion to the pace at which he is driven; less in middle age than in youth; less in old age than in middle age; nothing in sickness; nothing in despair.
A man in a position to accumulate (the normal result of human labour), a man founded upon property in sufficient amount and in established form is no more productive in his non-productive moments than is a proletarian; but his life is balanced and regulated by his reception of rent and interest as well as wages. Surplus values come to him, and are the fly-wheel balancing the extremes of his life and carrying him over his bad times. With a proletarian it cannot be so. The aspect from Capital looks at a human being whose labour it proposes to purchase cuts right across that normal aspect of human life from which we all regard our own affections, duties, and character. A man thinks of himself, of his chances and of his security along the line of his own individual existence from birth to death. Capital purchasing his labour (and not the man himself) purchases but a cross-section of his life, his moments of activity. For the rest, he must fend for himself; but to fend for yourself when you have nothing is to starve.
As a matter of fact, where a few possess the means of production perfectly free political conditions are impossible. A perfect Capitalist State cannot exist, though we have come nearer to it in modern England than other and more fortunate nations had thought possible. In the perfect Capitalist State there would be no food available for the non-owner save when he was actually engaged in Production, and that absurdity would, by quickly ending all human lives save those of the owners, put a term to the arrangement. If you left men completely free under a Capitalist system, there would be so heavy a mortality from starvation as would dry up the sources of labour in a very short time.
Imagine the dispossessed to be ideally perfect cowards, the possessors to consider nothing whatsoever except the buying of their labour in the cheapest market—and the system would break down from the death of children and of out-o’-works and of women. You would not have a State in mere decline such as ours is. You would have a State manifestly and patently perishing.
As a fact, of course, Capitalism cannot proceed to its own logical extreme. So long as the political freedom of all citizens is granted the freedom of the few possessors of food to grant or withhold it, of the many non-possessors to strike any bargain at all, lest they lack it: to exercise such freedom fully is to starve the very young, the old, the impotent, and the despairing to death. Capitalism must keep alive, by non Capitalist methods, great masses of the population who would otherwise starve to death; and that is what Capitalism was careful to do to an increasing extent as it got a stronger and a stronger grip upon the English people. Elizabeth’s Poor Law at the beginning of the business, the Poor Law of 1834, coming at a moment when nearly half England had passed into the grip of Capitalism, are original and primitive instances: there are to-day a hundred others.
Though this cause of insecurity—the fact that the possessors have no direct incentive to keep men alive—is logically the most obvious, and always the most enduring under a Capitalist system, there is another cause more poignant in its effect upon human life. That other cause is the competitive anarchy in production which restricted ownership coupled with freedom involves. Consider what is involved by the very process of production where the implements and the soil are in the hands of a few whose motive for causing the proletariat to produce is not the use of the wealth created but the enjoyment by those possessors of surplus value or “profit.”
If full political freedom be allowed to any two such possessors of implements and stores, each will actively watch his market, attempt to undersell the other, tend to overproduce at the end of some season of extra demand for his article, thus glut the market only to suffer a period of depression afterwards—and so forth. Again, the Capitalist, free, individual director of production, will miscalculate; sometimes he will fail, and his works will be shut down. Again, a mass of isolated, imperfectly instructed competing units cannot but direct their clashing efforts at an enormous waste, and that waste will fluctuate. Most commissions, most advertisements, most parades, are examples of this waste. If this waste of effort could be made a constant, the parasitical employment it afforded would be a constant too. But of its nature it is a most inconstant thing, and the employment it affords is therefore necessarily precarious. The concrete translation of this is the insecurity of the commercial traveller, the advertising agent, the insurance agent, and every form of touting and cozening which competitive Capitalism carries with it.
Now here again, as in the case of the insecurity produced by age and sickness, Capitalism cannot be pursued to its logical conclusion, and it is the element of freedom which suffers. Competition is, as a fact, restricted to an increasing extent by an understanding between the competitors, accompanied, especially in this country, by the ruin of the smaller competitor through secret conspiracies entered into by the larger men, and supported by the secret political forces of the State.3In a word, Capitalism, proving almost as unstable to the owners as to the non-owners, is tending towards stability by losing its essential character of political freedom. No better proof of the instability of Capitalism as a system could be desired.
Take any one of the numerous Trusts which now control English industry, and have made of modern England the type, quoted throughout the Continent, of artificial monopolies. If the full formula of Capitalism were accepted by our Courts and our executive statesmen, anyone could start a rival business, undersell those Trusts and shatter the comparative security they afford to industry within their field. The reason that no one does this is that political freedom is not, as a fact, protected here by the Courts in commercial affairs. A man attempting to compete with one of our great English Trusts would find himself at once undersold. He might, by all the spirit of European law for centuries, indict those who would ruin him, citing them for a conspiracy in restraint of trade; of this conspiracy he would find the judge and the politicians most heartily in support.
But it must always be remembered that these conspiracies in restraint of trade which are the mark of modern England are in themselves a mark of the transition from the true Capitalist phase to another.
Under the essential conditions of Capitalism—under a perfect political freedom—such conspiracies would be punished by the Courts for what they are: to wit, a contravention of the fundamental doctrine of political liberty. For this doctrine, while it gives any man the right to make any contract he chooses with any labourer and offer the produce at such prices as he sees fit, also involves the protection of that liberty by the punishment of any conspiracy that may have monopoly for its object. If such perfect freedom is no longer attempted, if monopolies are permitted and fostered, it is because the unnatural strain to which freedom, coupled with restricted ownership, gives rise, the insecurity of its mere competition, the anarchy of its productive methods have at last proved intolerable.
I have already delayed more than was necessary in this section upon the causes which render a Capitalist State essentially unstable.
I might have treated the matter empirically, taking for granted the observation which all my readers must have made, that Capitalism is as a fact doomed, and that the Capitalist State has already passed into its first phase of transition.
We are clearly no longer possessed of that absolutely political freedom which true Capitalism essentially demands. The insecurity involved, coupled with the divorce between our traditional morals and the facts of society, have already introduced such novel features as the permission of conspiracy among both possessors and non-possessors, the compulsory provision of security through State action, and all these reforms, implicit or explicit, the tendency of which I am about to examine.