I think both books will be found in the public library. At any rate, they ought to be. But if not, it would be worth your while to save the price of a few whiskies and to buy them for yourself. You see, Jonathan, I want you to study.

IV

HOW WEALTH IS PRODUCED AND HOW IT IS DISTRIBUTED

It is easy to persuade the ma.s.ses that the good things of this world are unjustly divided--especially when it happens to be the exact truth.--_J.A. Froude._

The growth of wealth and of luxury, wicked, wasteful and wanton, as before G.o.d I declare that luxury to be, has been matched step by step by a deepening and deadening poverty, which has left whole neighborhoods of people practically without hope and without aspiration.--_Bishop Potter._

At present, all the wealth of Society goes first into the possession of the Capitalist.... He pays the landowner his rent, the labourer his wages, the tax and t.i.the-gatherer their claims, and keeps a large, indeed, the largest, and a constantly augmenting share of the annual produce of labour for himself. The Capitalist may now be said to be the first owner of all the wealth of the community, though no law has conferred on him the right of this property.... This change has been effected by the taking of interest on Capital ... and it is not a little curious that all the lawgivers of Europe endeavoured to prevent this by Statutes--viz., Statutes against usury.--_Rights of Natural and Artificial Property Contrasted_ (_An Anonymous work, published in London, in 1832_).--_Th. Hodgskin._

You are not a political economist, Jonathan, nor a statistician. Most books on political economy, and most books filled with statistics, seem to you quite unintelligible. Your education never included the study of such books and they are, therefore, almost if not quite worthless to you.

But every working man ought to know something about political economy and be familiar with some statistics relating to social conditions.

So I am going to ask you to study a few figures and a little political economy. Only just a very little, mind you, just to get you used to thinking about social problems in a scientific way. I think I can set the fundamental principles of political economy before you in very simple language, and I will try to make the statistics interesting.

But I want to warn you again, Jonathan, that you must use your own commonsense. Don't trust too much to theories and figures--especially figures. Somebody has said that you can divide the liars of the world into three cla.s.ses--liars, d.a.m.ned liars and statisticians. Some people are paid big salaries for juggling with figures to fool the American people into believing what is not true, Jonathan. I want you to consider the laws of political economy and all the statistics I put before you in the light of your own commonsense and your own practical experience.

Political economy is the name which somebody long ago gave to the formal study of the production and distribution of wealth. Carlyle called it "the dismal science," and most books on the subject are dismal enough to justify the term. Upon my library shelves there are some hundreds of volumes dealing with political economy, and I don't mind confessing to you that some of them I never have been able to understand, though I have put no little effort and conscience into the attempt. I have a suspicion that the authors of these books could not understand them themselves. That the reason why they could not write so that a man of fair intelligence and education could understand them was the fact that they had no clear ideas to convey.

Now, in the first place, what do we mean by _Wealth_? Why, you say, wealth is money and money is wealth. But that is only half true, Jonathan. Suppose, for example, that an American millionaire crossing the ocean be shipwrecked and find himself cast upon some desert island, like another Robinson Crusoe, without food or means of obtaining any. Suppose him naked, without tool or weapon of any kind, his one sole possession being a bag containing ten thousand dollars in gold and banknotes to the value of as many millions. With that money, in New York, or any other city in the world, he would be counted a rich man, and he would have no difficulty in getting food and clothing.

But alone upon that desert island, what could he do with the money? He could not eat it, he could not keep himself warm with it? He would be poorer than the poorest savage in Africa whose only possessions were a bow and arrow and an a.s.segai, or spear, wouldn't he? The poor kaffir who never heard of money, but who had the simple weapons with which to hunt for food, would be the richer man of the two, wouldn't he?

I think you will find it useful, Jonathan, to read a little book by John Ruskin, called _Unto This Last_. It is a very small book, written in very simple and beautiful language. Mr. Ruskin was a somewhat whimsical writer, and there are some things in the book which I do not wholly agree with, but upon the whole it is sane, strong and eternally true. He shows very clearly, according to my notion, that the mere possession of things, or of money, is not wealth, but that _wealth consists in the possession of things useful to us_. That is why the possession of heaps of gold by a man living alone upon a desert island does not make him wealthy, and why Robinson Crusoe, with weapons, tools and an abundant food supply, was really a wealthy man, though he had not a dollar.

In a primitive state of society, then, he is poor who has not enough of the things useful to him, and he who has them in abundance is rich, or wealthy.

Note that I say this of "A primitive state of society," Jonathan, for that is most important. _It is not true of our present capitalist state of society._ This may seem a strange proposition to you at first, but a little careful thought will convince you that it is true.

Consider a moment: Mr. Carnegie is a wealthy man and Mr. Rockefeller is a wealthy man. They are, each of them, richer than most of the princes and kings whose wealth astonished the ancient world. Mr.

Carnegie owns shares in many companies, steelmaking companies, railway companies, and so on. Mr. Rockefeller, owns shares in the Standard Oil Company, in railways, coal mines, and so on. But Mr. Carnegie does not personally use any of the steel ingots made in the works in which he owns shares. He uses practically no steel at all, except a knife or two. Mr. Rockefeller does not use the oil-wells he owns, nor a hundred-millionth part of the coal his shares in coal-mines represent.

If one could get Mr. Carnegie into one of the works in which he is interested and stand with him in front of one of the great furnaces as it poured forth its stream of molten metal, he might say: "See! that is partly mine. It is part of my wealth!" Then, if one were to ask "But what are you going to do with that steel, Mr. Carnegie--is it useful to you?" Mr. Carnegie would laugh at the thought. He would probably reply, "No, bless your life! The steel is useless to _me_. I don't want it. But somebody else does. _It is useful to other people._"

Ask Mr. Rockefeller, "Is this oil refinery your property, Mr.

Rockefeller?" and he would reply: "It is partly mine. I own a big share in it and it represents part of my wealth." Ask him next: "But, Mr. Rockefeller, what are _you_ going to do with all that oil? Surely, you cannot need so much oil for your own use?" and he, like Mr.

Carnegie, would reply: "No! The oil is useless to me. I don't want it.

But somebody else does. _It is useful to other people._"

To be rich in our present social state, Jonathan, you must not only own an abundance of things useful to you, but also things useful only to others, which you can sell to them at a profit. Wealth, in our present society, then consists in the possession of things having an exchange value--things which other people will buy from you. So endeth our first lesson in political economy.

And here beginneth our second lesson, Jonathan. We must now consider how wealth is produced.

The Socialists say that all wealth is produced by labor applied to natural resources. That is a very simple answer, which you can easily remember. But I want you to examine it well. Think it over: ask yourself whether anything in your experience as a workingman confirms or disproves it. Do you produce wealth? Do your fellow workers produce wealth? Do you know of any other way in which wealth can be produced than by labor applied to natural resources? Don't be fooled, Jonathan.

Think for yourself!

The wealth of a fisherman consists in an abundance of fish for which there is a good market. But suppose there is a big demand for fish in the cities and that, at the same time, there are millions of fish in the sea, ready to be caught. So long as they are in the sea, the fish are not wealth. Even if the sea belonged to a private individual, as the oil-wells belong to Mr. Rockefeller and a few other individuals, n.o.body would be any the better off. Fish in the sea are not wealth, but fish in the market-places are. Why, because labor has been expended in catching them and bringing them to market.

There are millions of tons of coal in Pennsylvania. President Baer said, you will remember, that G.o.d had appointed him and a few other gentlemen to look after that coal, to act as His trustees. And Mr.

Baer wasn't joking, either. That is the funny part of the story: he was actually serious when he uttered that foolish blasphemy! There are also millions of people who want coal, whose very lives depend upon it. People who will pay almost any price for it rather than go without it.

The coal is there, millions of tons of it. But suppose that n.o.body digs for it; that the coal is left where Nature produced it, or where G.o.d placed it, whichever description you prefer? Do you think it would do anybody any good lying there, just as it lay untouched when the Indian roved through the forests ignorant of its presence? Would anybody be wealthier on account of the coal being there? Of course not. It only becomes wealth when somebody's labor makes it available.

Every dollar of the wealth of our coal-mining industry, as of the fishing industries, represents human labor.

I need not go through the list of all our industries, Jonathan, to make this truth clear to you. If it pleases you to do so, you can easily do that for yourself. I simply wanted to make it clear that the Socialists are stating a great universal truth when they say that labor applied to natural resources is the true source of all wealth.

As Sir William Petty said long ago: "Labor is the father and land is the mother of all wealth."

But you must be careful, Jonathan, not to misuse that word "labor."

Socialists don't mean the labor of the hands only, when they speak of labor. Take the case of the coal-mines again, just for a moment: There are men who dig the coal, called miners. But before they can work there must be other men to make tools and machinery for them. And before there can be machinery made and fixed in its proper place there must be surveyors and engineers, men with a special education and capacity, to draw the plans, and so on. Then there must be some men to organize the business, to take orders for the coal, to see that it is shipped, to collect the payment agreed upon, so that the workers can be paid, and so on through a long list of things requiring _mental labor_.

Both kinds of labor are equally necessary, and no one but a fool would ever think otherwise. No Socialist writer or lecturer ever said that wealth was produced by _manual labor_ alone applied to natural resources. And yet, I hardly ever pick up a book or newspaper article written against Socialism in which that is not charged against the Socialists! The opponents of Socialism all seem to be lineal descendants of Ananias, Jonathan!

For your special, personal benefit I want to cite just one instance of this misrepresentation. You have heard, I have no doubt, of the English gentleman, Mr. W.H. Mallock, who came to this country last year to lecture against Socialism. He is a very pleasant fellow, personally--as pleasant a fellow as a confirmed aristocrat who does not like to ride in the street cars with "common people" can be. Mr.

Mallock was hired by the Civic Federation and paid out of funds which Mr. August Belmont contributed to that body, funds which did not belong to Mr. Belmont, as the investigation of the affairs of the New York Traction Companies conducted later by the Hon. W.M. Ivins, showed. He was hired to lecture against Socialism in our great universities and colleges, in the interests of people like Mr.

Belmont. And there was not one of those universities or colleges fair enough to say: "We want to hear the Socialist side of the argument!" I don't think the word "fairplay," about which we used to boast as one of the glories of our language, is very much liked or used in American universities, Jonathan. And I am very sorry. It ought not to be so.

I should have been very glad to answer Mr. Mallock's silly and unjust attacks; to say to the professors and students in the universities and colleges: "I want you to listen to our side of the argument and then make up your minds whether we are right or whether truth is on the side of Mr. Mallock." That would have been fair and honest and manly, wouldn't it? There were several other Socialist lecturers, the equals of Mr. Mallock in education and as public speakers, who would have been ready to do the same thing. And not one of us would have wanted a cent of anybody's money, let alone money contributed by Mr. August Belmont.

Mr. Mallock said that the Socialists make the claim that manual labor alone creates wealth when applied to natural objects. _That statement is not true._ He even dared say that a great and profound thinker like Karl Marx believed and taught that silly notion. The newspapers of America hailed Mr. Mallock as the long-looked-for conqueror of Marx and his followers. They thought he had demolished Socialism. But did they know that they were resting their case upon a _lie_, I wonder?

That Marx never for a moment believed such a thing; that he went out of his way to explain that he did not?

I don't want you to try to read the works of Marx, my friend--at least, not yet: _Capital_, his greatest work, is a very difficult book, in three large volumes. But if you will go into the public library and get the first volume in English translation, and turn to page 145, you will read the following words:

"By labor power or capacity for labor is to be understood the aggregate of those _mental and physical_ capabilities existing in a human being, which he exercises when he produces a use-value of any description."[2]

I think you will agree, Jonathan, that that statement fully justifies all that I have said concerning Mr. Mallock. I think you will agree, too, that it is a very clear and intelligible definition, which any man of fair sense can understand. Now, by way of contrast, I want you to read one of Mr. Mallock's definitions. Please bear in mind that Mr.

Mallock is an English "scholar," by many regarded as a very clear thinker. This is how he defines labor:

"_Labor means the faculties of the individual applied to his own labor._"

I have never yet been able to find anybody who could make sense out of that definition, Jonathan, though I have submitted it to a good many people, among them several college professors. It does not mean anything. The fifty-seven letters contained in that sentence would mean just as much if you put them in a bag, shook them up, and then put them on paper just as they happened to fall out of the bag. Mr.

Mallock's English, his veracity and his logic are all equally weak and defective.

I don't think that Mr. Mallock is worthy of your consideration, Jonathan, but if you are interested in reading what he said about Socialism in the lectures I have been referring to, they are published in a volume ent.i.tled, _A Critical Examination of Socialism_. You can get the book in the library: they will be sure to have it there, because it is against Socialism. But I want you to buy a little book by Morris Hillquit, called _Mr. Mallock's "Ability,"_ and read it carefully. It costs only ten cents--and you will get more amus.e.m.e.nt reading the careful and scholarly dissection of Mallock than you could get in a dime show anywhere. If you will read my own reply to Mr.

Mallock, in my little book _Capitalist and Laborer_, I shall not think the worse of you for doing so.

Now, let us look at the division of the wealth. It is all produced by labor of manual workers and brain workers applied to natural objects which no man made. I am not going to weary you with figures, Jonathan, because you are not a statistician. I am going to take the statistics and make them as simple as I can for you--and tell you where you can find the statistics if you ever feel inclined to try your hand upon them.

But first of all I want you to read a pa.s.sage from the writings of a very great man, who was not a "wicked Socialist agitator" like your humble servant. Archdeacon Paley, the great English theologian, was not like many of our modern clergymen, afraid to tell the truth about social conditions; he was not forgetful of the social aspects of Christ's teaching. Among many profoundly wise utterances about social conditions which that great and good teacher made more than a century ago was the pa.s.sage I now want you to read and ponder over. You might do much worse than to commit the whole pa.s.sage to memory. It reads:

"If you should see a flock of pigeons in a field of corn, and if (instead of each picking where and what it liked, taking just as much as it wanted, and no more) you should see ninety-nine of them gathering all they got into a heap, reserving nothing for themselves but the chaff and the refuse, keeping this heap for one, and that the weakest, perhaps worst, pigeon of the flock, sitting round and looking on, all the winter, whilst this one was devouring, throwing about and wasting it; and if a pigeon, more hardy or hungry than the rest, touched a grain of the h.o.a.rd, all the others instantly flying upon it, and tearing it to pieces; if you should see this, you would see nothing more than what is every day practised and established among men.

"Among men you see the ninety-and-nine toiling and sc.r.a.ping together a heap of superfluities for one (and this one, too, oftentimes the feeblest and worst of the set, a child, a woman, a madman or a fool), getting nothing for themselves, all the while, but a little of the coa.r.s.est of the provision which their own industry produces; looking quietly on, while they see the fruits of all their labor spent or spoiled; and if one of their number take or touch a particle of the h.o.a.rd, the others joining against him, and hanging him for theft."