PURPOSES AND POLICIES OF GOVERNMENT
In this chapter the wisdom of the Fathers is sought to be shown
by the fact that they inaugurated policies and purposes
admirably calculated to develop the individuality of each
citizen, and to afford the greatest opportunity for the maximum
of human happiness.
With these philosophies of human life in our mind, let us pass to the
study of the purpose and policy of our government as shown in its
history.
Imagine, if you will, that we have just won our independence, that the
Constitutional Convention has been held, the matchless document there
formulated has been adopted and that the United States of America has
become a Nation. Then suppose all the people within our domain gather
to determine the purpose and policy of their government. Will we choose
the least possible government, and the greatest measure of liberty, or
shall the United States become a great business concern with all its
citizens on the payroll? Shall government guard the liberties of the
people while they prosecute their business, or shall the government
conduct the business and the citizen guard the government?
Alexander Hamilton will attend this meeting and will make the speech of
his life. Talleyrand declared Hamilton’s to be the greatest intellect
he ever met. In addition to well-nigh matchless mentality he probably
possessed greater vision than any man of his time; and vision is the
natural parent of statesmanship, if indeed it be not statesmanship
itself.
Standing at the cradle of this nation, Alexander Hamilton assures
Talleyrand that either Philadelphia or New York will be ultimately the
financial center of the world. Back in the interior he predicts another
metropolis. Eventually, he declares, the United States will extend to
the Pacific Ocean and yonder on the western coast there will be another
metropolis. If we build to such dimensions these must be our policies.
He continues his speech and tells us that the United States is not only
destined to be the most powerful but likewise the richest nation in the
world. Our unearned increment will exceed the dream of man. These
lands, now worthless, are intrinsically of great value. All the
minerals and all the metals will be found within our borders and these
will measure untold riches. Today we have resources unequalled in any
land, and resourcefulness unmatched by any people, and he reminds us
that resourcefulness, when applied to resources, will produce greatness.
Then someone in the audience rises and announces himself a bolshevist
and moves that the United States retain title to all these wonderful
resources until they attain their maximum value. He proposes that we
tolerate no “land hogs” and permit no one to exploit the resources of
America or make profit out of iron or coal or oil or even a waterpower.
Then a socialist declares this to be a concise statement of his creed
and seconds the motion. Non-partisan leaguers from North Dakota, and
single-taxers from California, also favor it. An anarchist joins to say
that while his people are opposed to any laws, yet if laws are to be
made, they should each prohibit something and none should encourage
anything. Then an I. W. W. declares that this will suit him, provided
he be not required to work. But the proposition is lost.
Then a preamble and resolution is offered to this effect: “Whereas, the
All-wise Creator has decreed that man shall derive his greatest
happiness from his achievements, therefore, with faith both in God and
man and believing in America, be it resolved, that we emblazon upon the
sky where all the world shall see, the great announcement that the
Stars and Stripes shall forever stand for Opportunity!” This is carried
by acclamation and amid applause.
Then another moves that we give notice to every citizen, and to every
person who may desire to become a citizen, that in the pursuit of
guaranteed happiness, each shall have guaranteed liberty to look over
our broad domain, select the biggest thing he dare undertake and, if he
makes it win, it shall belong to him. This motion is carried by a
rising vote.
Then a third man moves that in the development of our resources, the
government shall foster everything, and father nothing. In his speech
supporting the motion, he suggests that if Mr. Hamilton’s prediction
concerning the ultimate greatness of America proves true, men will
engage in commerce; they will build ships and they will build them too
large for our harbors. Then the government, in fostering commerce, will
deepen and widen our waterways, but it will not father commerce and
take over the ships. It will leave to the citizen the right to own the
ship, to fly his flag at its mast and to get the thrill that will
surely come from sailing the biggest ship that cuts the waves of ocean.
Achieve and be happy! This motion is also adopted.
After these hopeful and courageous souls have thus formulated a
progressive policy, a man announces his fear that he does not possess
the necessary vision, and certainly not the requisite courage to
accomplish any great thing and, therefore, intends to become a
wage-earner, and asks the assembled citizenship of America what they
propose to do for him. Being honest with ourselves we are compelled to
admit that we can promise little for the present. We tell him frankly
that if he is simply seeking wages, he might as well remain in the
country of his nativity. We assure him, however, that if he can endure
pioneer hardships until the lands have value, until the mines are
developed, until means of transportation are afforded, until the
unearned increment begins to appear, we will give him better wages than
the world has ever seen. Have we kept faith? Let us see.
RELATIVE REWARDS OF CAPITAL AND LABOR
As late as 1840 men worked twelve hours per day for twenty-five cents,
payable in cornmeal or meat, for there was no money. I can remember
when fifty cents per day was a good wage. Then, when property began to
have value, we started up the spiral stairway of more wage and more
wage and then more wage.
What effect did this have? The world took notice and immigration
increased as wages advanced. In 1907 over one million immigrants landed
on our shores, and more than half with less than the required $35.00 in
cash. The next year 800,000 went back. Some of them had been here
several years and others only a short time, but, in addition to what
they had sent home, they took with them from three hundred to five
thousand dollars each.
How about capital? For nearly one hundred years, foreign capital sought
American opportunity. Foreign capital built our first railways,
established our first banks, erected our first factories. But about
twenty-five years ago it largely ceased to come, for it could do no
better here than elsewhere. Even American capital sought employment in
Mexico, China and in Canada, simply because these countries offered
better rewards for capital. The records of the Immigration Department
contain positive proof that for more than twenty-five years labor in
this country has been relatively better rewarded than capital.
Otherwise capital would have come as labor came.
This great truth ought not to be ignored. The only reason capital
continued to come for one hundred years is because it could do better
here than elsewhere. The only reason that it ultimately went elsewhere
is because it could do better elsewhere. Meantime, immigration, most of
it swelling the ranks of labor, increased solely because labor received
in America a relatively larger share of the profits of business and
enterprise than in any other country on the map.
No one claims that even now labor receives more than its due. I am
simply demonstrating the _relative_ rewards of capital and labor in the
United States and citing positive proof that immigrants who come
seeking opportunity do not pursue a barren hope.