Equality, Edward Bellamy [online e book reading .txt] 📗

reduce their prices they saved their profits as long as possible by making up for the reductions in price by debasing the quality of the goods or cutting down wages until the public and the wage-earners could be cheated and squeezed no longer. Then only did they begin to sacrifice profits, and it was then too late for the impoverished consumers to respond by increasing consumption. It was always, as John told us, in the countries where the people were poorest that the prices were lowest, but without benefit to the people."

THE AMERICAN FARMER AND MACHINERY.

"And now," said the teacher, "I want to ask you something about the effect of labor-saving inventions upon a class of so-called capitalists who made up the greater half of the American people--I mean the farmers. In so far as they owned their farms and tools, however encumbered by debts and mortgages, they were technically capitalists, although themselves quite as pitiable victims of the capitalists as were the proletarian artisans. The agricultural labor-saving inventions of the nineteenth century in America were something simply marvelous, enabling, as we have been told, one man to do the work of fifteen a century before. Nevertheless, the American farmer was going straight to the dogs all the while these inventions were being introduced. Now, how do you account for that? Why did not the farmer, as a sort of capitalist, pile up his profits on labor-saving machinery like the other capitalists?"

"As I have said," replied the girl, "the profits made by labor-saving machinery resulted from the increased productiveness of the labor employed, thus enabling the capitalist either to turn out a greater product with the same labor cost or an equal product with a less labor cost, the workers supplanted by the machine being discharged. The amount of profits made was therefore dependent on the scale of the business carried on--that is, the number of workers employed and the consequent figure which labor cost made in the business. When farming was carried on upon a very large scale, as were the so-called bonanza farms in the United States of that period, consisting of twenty to thirty thousand acres of land, the capitalists conducting them did for a time make great profits, which were directly owing to the labor-saving agricultural machines, and would have been impossible without them. These machines enabled them to put a greatly increased product on the market with small increase of labor cost or else the same product at a great decrease of labor cost. But the mass of the American farmers operated on a small scale only and employed very little labor, doing largely their own work. They could therefore make little profit, if any, out of labor-saving machinery by discharging employees. The only way they could utilize it was not by cutting down the expense of their output but by increasing the amount of the output through the increased efficiency of their own labor. But seeing that there had been no increase meanwhile in the purchasing power of the community at large, there was no more money demand for their products than before, and consequently if the general body of farmers through labor-saving machinery increased their output, they could dispose of the greater aggregate only at a reduced price, so that in the end they would get no more for the greater output than for the less. Indeed, they would not get so much, for the effect of even a small surplus when held by weak capitalists who could not keep it back, but must press for sale, had an effect to reduce the market price quite out of proportion to the amount of the surplus. In the United States the mass of these small farmers was so great and their pressure to sell so desperate that in the latter part of the century they destroyed the market not only for themselves but finally even for the great capitalists who conducted the great farms."

"The conclusion is, then, Helen," said the teacher, "that the net effect of labor-saving machinery upon the mass of small farmers in the United States was ruinous."

"Undoubtedly," replied the girl. "This is a case in which the historical facts absolutely confirm the rational theory. Thanks to the profit system, inventions which multiplied the productive power of the farmer fifteenfold made a bankrupt of him, and so long as the profit system was retained there was no help for him."

"Were farmers the only class of small capitalists who were injured rather than helped by labor-saving machinery?"

"The rule was the same for all small capitalists whatever business they were engaged in. Its basis, as I have said, was the fact that the advantage to be gained by the capitalists from introducing labor-saving machinery was in proportion to the amount of labor which the machinery enabled them to dispense with--that is to say, was dependent upon the scale of their business. If the scale of the capitalist's operations was so small that he could not make a large saving in reduced labor cost by introducing machinery, then the introduction of such machinery put him at a crushing disadvantage as compared with larger capitalists. Labor-saving machinery was in this way one of the most potent of the influences which toward the close of the nineteenth century made it impossible for the small capitalists in any field to compete with the great ones, and helped to concentrate the economic dominion of the world in few and ever fewer hands."

"Suppose, Helen, that the Revolution had not come, that labor-saving machinery had continued to be invented as fast as ever, and that the consolidation of the great capitalists' interests, already foreshadowed, had been completed, so that the waste of profits in competition among themselves had ceased, what would have been the result?"

"In that case," replied the girl, "all the wealth that had been wasted in commercial rivalry would have been expended in luxury in addition to what had been formerly so expended. The new machinery year by year would have gone on making it possible for a smaller and ever smaller fraction of the population to produce all the necessaries for the support of mankind, and the rest of the world, including the great mass of the workers, would have found employment in unproductive labor to provide the materials of luxury for the rich or in personal services to them. The world would thus come to be divided into three classes: a master caste, very limited in numbers; a vast body of unproductive workers employed in ministering to the luxury and pomp of the master caste; and a small body of strictly productive workers, which, owing to the perfection of machinery, would be able to provide for the needs of all. It is needless to say that all save the masters would be at the minimum point as to means of subsistence. Decaying empires in ancient times have often presented such spectacles of imperial and aristocratic splendor, to the supply and maintenance of which the labor of starving nations was devoted. But no such spectacle ever presented in the past would have been comparable to that which the twentieth century would have witnessed if the great Revolution had permitted private capitalism to complete its evolution. In former ages the great mass of the population has been necessarily employed in productive labor to supply the needs of the world, so that the portion of the working force available for the service of the pomp and pleasures of the masters as unproductive laborers has always been relatively small. But in the plutocratic empire we are imagining, the genius of invention, through labor-saving machinery, would have enabled the masters to devote a greater proportion of the subject population to the direct service of their state and luxury than had been possible under any of the historic despotisms. The abhorrent spectacles of men enthroned as gods above abject and worshiping masses, which Assyria, Egypt, Persia, and Rome exhibited in their day, would have been eclipsed."

"That will do, Helen," said the teacher. "With your testimony we will wind up our review of the economic system of private capitalism which the great Revolution abolished forever. There are of course a multitude of other aspects and branches of the subject which we might take up, but the study would be as unprofitable as depressing. We have, I think, covered the essential points. If you understand why and how profits, rent, and interest operated to limit the consuming power of most of the community to a fractional part of its productive power, thereby in turn correspondingly crippling the latter, you have the open secret of the poverty of the world before the Revolution, and of the impossibility of any important or lasting improvement from any source whatever in the economic circumstances of mankind, until and unless private capitalism, of which the profit system with rent and interest were necessary and inseparable parts, should be put an end to."


CHAPTER XXIX.


I RECEIVE AN OVATION.

"And now," the teacher went on, glancing at the gallery where the doctor and I had been sitting unseen, "I have a great surprise for you. Among those who have listened to your recitation to-day, both in the forenoon and afternoon, has been a certain personage whose identity you ought to be able to infer when I say that, of all persons now on earth, he is absolutely the one best able, and the only one fully able, to judge how accurate your portrayal of nineteenth-century conditions has been. Lest the knowledge should disturb your equanimity, I have refrained from telling you, until the present moment, that we have present with us this afternoon a no less distinguished visitor than Julian West, and that with great kindness he has consented to permit me to present you to him."

I had assented, rather reluctantly, to the teacher's request, not being desirous of exposing myself unnecessarily to curious staring. But I had yet to make the acquaintance of twentieth-century boys and girls. When they came around me it was easy to see in the wistful eyes of the girls and the moved faces of the boys how deeply their imaginations were stirred by the suggestions of my presence among them, and how far their sentiment was from one of common or frivolous curiosity. The interest they showed in me was so wholly and delicately sympathetic that it could not have offended the most sensitive temperament.

This had indeed been the attitude of all the persons of mature years whom I had met, but I had scarcely expected the same considerateness from school children. I had not, it seemed, sufficiently allowed for the influence upon manners of the atmosphere of refinement which surrounds the child of to-day from the cradle. These young people had never seen coarseness, rudeness, or brusqueness on the part of any one. Their confidence had never been abused, their sympathy wounded, or their suspicion excited. Having never imagined such a thing as a person socially superior or inferior to themselves, they had never learned but one sort of manners. Having never had any occasion to create a false or deceitful impression or to accomplish anything by indirection, it was natural that they should not know what affectation was.

Truly, it is these secondary consequences, these moral and social reactions of economic equality to create a noble atmosphere of human intercourse, that, after all, have been the greatest contribution which the principle has made to human happiness.

At once I found myself talking and jesting with the young people as easily as if I had always known them, and what with their interest in what I told them of the old-time schools, and my delight in their naive comments, an hour slipped away unnoticed. Youth is always inspiring, and the atmosphere of