Chapter X.

"Socialistic Legislation."

§ 1. Legislation in restraint of "Free" Contract.--The direct pressure

of certain tangible and painful forms of industrial grievance and of

poverty has forced upon us a large mass of legislation which is

sometimes called by the name of Socialistic Legislation. It is necessary

to enter on a brief examination of the character of the various

enactments included under this vague term, in order to ascertain the

real nature of the remedy they seek to apply.

Perhaps the most typical form of this socialistic legislation is

contained in the Factory Acts, embodying as they do a series of direct

interferences in the interests of the labouring classes with freedom of

contract between capital and labour.

The first of these Factory Acts, the Health and Morals Act, was passed

in 1802, and was designed for the protection of children apprenticed in

the rising manufacturing towns of the north, engaged in the cotton and

woollen trades. Large numbers of children apprenticed by poor-law

overseers in the southern counties were sent as "slaves" to the northern

manufacturer, to be kept in overcrowded buildings adjoining the factory,

and to be worked day and night, with an utter disregard to all

considerations of physical or moral health. There is no page in the

history of our nation so infamous as that which tells the details of the

unbridled greed of these pioneers of modern commercialism, feeding on

the misery and degradation of English children. This Act of 1802,

enforcing some small sanitary reforms, prohibited night work, and

limited the working-day of apprenticed children to twelve hours. In

1819, another Act was passed for the benefit of unapprenticed child

workers in cotton mills, prohibiting the employment of children under

nine years, and limiting the working-day to twelve hours for children

between nine and sixteen. Sir John Cam Hobhouse in 1825 passed an Act

further restricting the labour of children under sixteen years,

requiring a register of children employed in mills, and shortening the

work on Saturdays. Then came the agitation of Richard Oastler for a Ten

Hours Bill. But Parliament was not ripe for this, and Hobhouse,

attempting to redeem the hours in textile industries, was defeated by

the northern manufacturers. Public feeling, however, formed chiefly by

Tories like Oastler, Sadler, Ashley, and Fielden, drove the Whig leader,

Lord Althorp, to pass the important Factory Act of 1833. This Act drew

the distinction between children admitted to work below the age of

thirteen, and "young persons" of ages from thirteen to eighteen;

enforced in the case of the former attendance at school, and a maximum

working week of forty-eight hours; in the case of the latter prohibited

night work, and limited the hours of work to sixty-nine a week. The next

step of importance was Peel's consolidating Factory Act of 1844,

reducing the working-day for children to six and a half hours, and

increasing the compulsory school attendance from two hours to three, and

strengthening in various ways the machinery of inspection. In 1845 Lord

Ashley passed a measure prohibiting the night work of women. In 1848, by

the Act of Mr. Fielden, ten hours was assigned as a working-day for

women and young persons, and further restrictions in favour of women and

children were made in 1850 and 1853.

It must, however, be remembered that all the Factory legislation

previous to 1860 was confined to textile factories--cotton, woollen,

silk, or linen. In 1860, bleaching and dyeing works were brought within

the Factory Acts, and several other detailed extensions were made

between 1861 and 1864, in the direction of lace manufacture, pottery,

chimney-sweeping, and other employments. But not until 1867 were

manufactories in general brought under Factory legislation. This was

achieved by the Factory Acts Extension Act, and the Workshops Regulation

Act. For several years, however, the beneficial effects of this

legislation was grievously impaired by the fact that local authorities

were left to enforce it. Not until 1871, when the regulation and

enforcement was restored to State inspectors, was the legislation really

effectual. The Factory and Workshop Act of 1878, modified by a few more

recent restrictions, is still in force. It makes an advance on the

earlier legislation in the following directions. It prohibits the

employment in any factory or workshop of children under the age of

eleven, and requires a certificate of fitness for factory labour under

the age of sixteen. It imposes the half-time system on all children,

admitting, however, two methods, either of passing half the day in

school, and half at work, or of giving alternate days to work and

school. It recognizes a distinction between the severity of work in

textile factories and in non-textile factories, assigning a working week

of about fifty-six and a half hours to the former, and sixty hours to

the latter. The exceptions of domestic workshops, and of many other

forms of female and child employment, the permission of over-time within

certain limitations, and the inadequate provision of inspection,

considerably diminish the beneficial effects of these restrictive

measures.

In 1842 Lord Ashley secured a Mining Act, which prohibited the

underground employment of women, and of boys under ten years. In 1850

mine inspectors were provided, and a number of precautions enforced to

secure the safety of miners. In 1864 several minor industries, dangerous

in their nature, such as the manufacture of lucifer-matches, cartridges,

etc., were brought under special regulations. To these restrictive

pieces of legislation should be added the Employers' Liability Act,

enforcing the liability of employers for injuries sustained by workers

through no fault of their own, and the "Truck" legislation, compelling

the payment of wages in cash, and at suitable places.

This slight sketch will suffice to mark the leading features of a large

class of laws which must be regarded as a growth of State socialism.

The following points deserve special attention--

1. These measures are all forced on Parliament by the recognition of

actual grievances, and all are testimony to the failure of a system of

complete _laissez faire_.

2. They all imply a direct interference of the State with individual

freedom--i.e. the worker cannot sell his labour as he likes; the

capitalist cannot make what contracts he likes.

3. Though the protection of children and women is the strongest motive

force in this legislative action, many of these measures interfere

directly or indirectly with adult male labour--e.g. the limit on the

factory hours of women and children practically limits the factory day

for men, where the latter work with women or children. The clauses of

recent Factory Acts requiring the "fencing of machinery" and other

precautions, apply to men as well as to children and women. The Truck

Act and Employers' Liability Act apply to male adult labour.

§ 2. Theory of this Legislation.--Under such legislation as the

foregoing it is evident that the theory that a worker should be free to

sell his labour as he likes has given way before the following

considerations--

(1) That this supposed "freedom to work as one likes" often means only a

freedom to work as another person likes, whether that other person be a

parent, as in the case of children, or an employer, as in the case of

adult workers.

(2) That a worker in a modern industrial community is not a detached

unit, whose contract to work only concerns himself and his employer. The

fellow-workers in the same trade and society at large have a distinct

and recognizable interest in the conditions of the work of one another.

A, by keeping his shop open on Sundays, or for long hours on week-days,

is able to compel B, C, D, and all the rest of his trade competitors to

do the same. A minority of workmen by accepting low wages, or working

over-time, are often able to compel the majority to do the same. There

is no labour-contract or other commercial act which merely regards the

interest of the parties directly concerned. How far a society acting for

the protection of itself, or of a number of its members, is justified in

interfering between employer and workman, or between competing

tradesmen, is a question of expediency. General considerations of the

theoretic "freedom of contract," and the supposed "self-regarding"

quality of the actions, are thus liable to be set aside by this

socialistic legislation.

(3) These interferences with "free contract" of labour are not traceable

to the policy of any one political party. The most valuable portions of

the factory measures were passed by nominally Conservative governments,

and though supported by a section of the Radical party, were strenuously

opposed by the bulk of the Liberals, including another section of

Radicals and political economists.

These measures signify a slow but steady growth of national sentiment in

favour of securing for the poor a better life. The keynote of the whole

movement is the protection of the weak. This appears especially in a

recognition of the growing claims of children. Not only is this seen in

the history of factory legislation, but in the long line of educational

legislation, happily not ended yet. These taken together form a chain of

measures for the protection of the young against the tyranny, greed, or

carelessness of employers or parents. The strongest public sentiment is

still working in this same direction. Recent agitation on the subject of

prevention of cruelty to children, free dinners for school-children,

adoption of children, child insurance, attest the growing strength of

this feeling.

§ 3. General extension of Paternal Government.--The class of measures

with which we have dealt recognizes that children, women, and in some

cases men, are unable to look after their own interests as industrial

workers, and require the aid of paternal legislation. But it must not be

forgotten that the century has seen the growth of another long series of

legislative Acts based also on the industrial weakness of the

individual, and designed to protect society in general, adult or young,

educated or uneducated, rich or poor. Among these come Adulteration

Acts, Vaccination Acts, Contagious Diseases Acts, and the network of

sanitary legislation, Acts for the regulation of weights and measures,

and for the inspection of various commodities, licenses for doctors,

chemists, hawkers, &c. Many of these are based on ancient historic

precedents; we have grown so accustomed to them, and so thoroughly

recognize the value of most of them, that it seems almost unnecessary to

speak of them as socialistic measures. Yet such they are, and all of

them are objected to upon this very ground by men of the political

school of Mr. Herbert Spencer and Mr. Auberon Herbert. For it should be

noted--

1. Each of these Acts interferes with the freedom of the individual. It

compels him to do certain things--e.g. vaccinate his children, admit

inspectors on his premises--and it forbids him to do certain other

things.

2. Most of these Acts limit the utility to the individual of his

capital, by forbidding him to employ it in certain ways, and hampering

him with various restrictions and expenses. The State, or municipality,

in certain cases--e.g. railways and cabs--even goes so far as to fix

prices.

§ 4. State and Municipal Undertakings.--But the State does not confine

itself to these restrictive or prohibitive measures, interfering with

the free individual application of capital and labour, in the interests

of other individuals, or of society at large. The State and the

municipality is constantly engaged in undertaking new branches of

productive work, thus limiting the industrial area left open to the

application of private capitalist enterprise.

In some cases these public works exist side by side in competition with

private enterprise; as, for example, in the carriage of parcels, life

insurance, banking, and the various minor branches of post-office work,

in medical attendance, and the maintenance of national education, and of

places of amusement and recreation. In other cases it claims an absolute

monopoly, and shuts off entirely private enterprise, as in the

conveyance of letters and telegrams, and the local industries connected

with the production and distribution of gas and water. The extent and

complexity of that portion of our State and municipal machinery which is

engaged in productive work will be understood from the following

description--

"Besides our international relations, and the army, navy, police, and

the courts of justice, the community now carries on for itself, in some

part or another of these islands, the post-office, telegraphs, carriage

of small commodities, coinage, surveys the regulation of the currency

and note issue, the provision of weights and measures, the making,

sweeping, lighting, and repairing of streets, roads, and bridges, life

insurance, the grant of annuities, shipbuilding, stockbroking, banking,

farming, and money-lending. It provides for many of us from birth to

burial--midwifery, nursery, education, board and lodging, vaccination,

medical attendance, medicine, public worship, amusements, and interment.

It furnishes and maintains its own museums, parks, art galleries,

libraries, concert-halls, roads, bridges, markets, slaughterhouses,

fire-engines, lighthouses, pilots, ferries, surf-boats, steam-tugs,

life-boats, cemeteries, public baths, washhouses, pounds, harbours,

piers, wharves, hospitals, dispensaries, gas-works, water-works,

tramways, telegraph-cables, allotments, cow-meadows, artisans'

dwellings, schools, churches, and reading-rooms. It carries on and

publishes its own researches in geology, meteorology, statistics,

zoology, geography, and even theology. In our colonies the English

Government further allows and encourages the communities to provide for

themselves railways, canals, pawnbroking, theatres, forestry, cinchona

farms, irrigation, leper villages, casinos, bathing establishments, and

immigration, and to deal in ballast, guano, quinine, opium, salt, and

what not. Every one of these functions, with those of the army, navy,

police, and courts of justice, were at one time left to private

enterprise, and were a source of legitimate individual investment of

capital."[37]

Some of the utilities and conveniences thus supplied by public capital

and public labour are old-established wants, but many are new wants, and

the marked tendency of public bodies to undertake the provision of the

new necessaries and conveniences which grow up with civilization is a

phenomenon which deserves close attention.

§ 5. Motives of "Socialistic Legislation."--Stated in general terms,

this socialistic tendency may be described as a movement for the control

and administration by the public of all works engaged in satisfying

common general needs of life, which are liable, if trusted to private

enterprise, to become monopolies.

Articles which everybody needs, the consumption or use of which is

fairly regular, and where there is danger of insufficient or injurious

competition, if the provision be left to private firms, are constantly

passing, and will pass more and more quickly, under public control. The

work of protection against direct injuries to person and property has in

all civilized countries been recognized as a dangerous monoply if left

to private enterprise. Hence military, naval, police, and judicial work

is first "socialized," and in modern life a large number of subsidiary

works for the protection of the life and wealth of the community are

added to these first public duties. Roads, bridges, and a large part of

the machinery of communication or conveyance are soon found to be

capable of abuse if left to private ownership; hence the post and

telegraph is generally State-owned, and in most countries the railways.

There is for the same reason a strong movement towards the municipal

ownership of tramways, gas-and water-works, and all such works as are

associated with monopoly of land, and are not open to adequate

competition. In England everywhere these works are subject to public

control, and the tendency is for this control, which implies part

ownership, to develop into full ownership. Nearly half the gas-consumers

in this country are already supplied by public works. One hundred and

two municipalities own electric plant, forty-five own their tramway

systems, one hundred and ninety-three their water supplies, at the close

of 1902.

The receipts of local authorities from rates and other sources,

including productive undertakings, had increased from seventy millions

sterling to one hundred and forty-five millions between 1890-1 and

1901-2. Art galleries, free libraries, schools of technical education,

are beginning to spring up on all sides. Municipal lodging-houses are in

working at London, Glasgow, and several other large towns.

In every one of these cases, two forces are at work together, the

pressure of an urgent public need, and the perception that private

enterprise cannot be trusted to satisfy their need on account of the

danger of monopoly. How far or how fast this State or municipal

limitation of private enterprise and assumption of public enterprise

will proceed, it is not possible to predict. Everything depends on the

two following considerations--

First, the tendency of present private industries concerned with the

supply of common wants of life to develop into dangerous monopolies by

the decay of effective competition. If the forces at work in the United

States for the establishment of syndicates, trusts, and other forms of

monopoly, show themselves equally strong in England, the inevitable

result will be an acceleration of State and municipal socialism.

Secondly, the capacity shown by our municipal and other public bodies

for the effective management of such commercial enterprises as they are

at present engaged in.

Reviewing then the mass of restrictive, regulative, and prohibitive

legislation, largely the growth of the last half century, and the

application of the State and municipal machinery to various kinds of

commercial undertakings in the interest of the community, we find it

implies a considerable and growing restriction of the sphere of private

enterprise.

§ 6. The "Socialism" of Taxation--But there is another form of State

interference which is more direct and significant than any of these. One

of the largest State works is that of public education. Now the cost of

this is in large measure defrayed by rate and tax, the bulk of which, in

this case, is paid by those who do not get for themselves or for their

children any direct return. The State-assisted education is said to tax

A for the benefit of B. Nor is this a solitary instance; it belongs to

the very essence of the modern socialistic movement. There is a strong

movement, independent too of political partisanship, to cast, or to

appear to cast, the burden of taxation more heavily upon the wealthier

classes in order to relieve the poor. It is enough to allude to the

income tax and the Poor Law. These are socialistic measures of the

purest kind, and are directly open to that objection which is commonly

raised against theoretic socialism, that it designs "to take from the

rich in order to give to the poor." The growing public opinion in favour

of graduated income tax, and the higher duty upon legacies and rich

man's luxuries, are based on a direct approval of this simple policy of

taking from the rich and giving to the poor.

The advocates of these measures urge this claim on grounds of public

expediency, and those whose money is taken for the benefit of their

poorer brethren, though they grumble, do not seriously impugn the right

of the State to levy taxes in what way seems best. Whether we regard the

whole movement from the taxation standpoint, or from the standpoint of

benefits received, we shall perceive that it really means a direct and

growing pressure brought to bear upon the rich for the benefit of the

poor. A consideration of all the various classes of socialistic

legislation and taxation to which we have referred, will show that we

are constantly engaged more and more in the practical assertion and

embodiment of the three following principles--

1. That the individual is often too weak or ignorant to protect himself

in contract or bargain, and requires public protection.

2. That considerations of public interest are held to justify a growing

interference with "rights of property."

3. That the State or municipality may enlarge their functions in any

direction and to any extent, provided a clear public interest is

subserved.

§ 7. Relation of Theoretic Socialism to Socialistic Legislation.--Now it

has been convenient in speaking of this growth of State and municipal

action to use the term Socialism. But we ought to be clear as to the

application of this term. Although Sir William Harcourt declared, "We

are all socialists to-day," the sober, practical man who is responsible

for these "socialistic" measures, smiles at the saying, and regards it

as a rhetorical exaggeration. He knows well enough that he and his

fellow-workers are guided by no theory of the proper limits of

government, and are animated by no desire to curtail the use of private

property. The practical politician in this country is beckoned forward

by no large, bright ideal; no abstract consideration of justice or

social expediency supplies him with any motive force. The presence of

close detailed circumstance, some local, concrete want to be supplied,

some distinct tangible grievance to be redressed, some calculable

immediate economy to be effected, such are the only conscious motives

which push him forward along the path we have described. An alarming

outbreak of disease registered in a high local death-rate presses the

question of sanitary reform, and gives prominence to the housing of the

working-classes. The bad quality of gas, and the knowledge that the

local gas company, having reached the limit of their legal dividend, are

squandering the surplus on high salaries and expensive offices, leads to

the municipalization of the gas-works. The demand made upon the

ratepayers of Bury to expend; £60,000 on sewage-works, a large

proportion of which would go to increase the ground value of Lord

Derby's property, leads them to realize the justice and expediency of a

system of taxation of ground values which shall prevent the rich

landlord from pocketing the contribution of the poor ratepayer. So too

among those directly responsible for State legislation, it is the force

of public opinion built out of small local concrete grievances acting in

coalition with a growing sentiment in favour of securing better material

conditions for the poor, that drafts these socialistic bills, and gets

them registered as Acts of Parliament.

But the student of history must not be deceived into thinking that

principles and abstract theories are not operative forces because they

appear to be subordinated to the pressure of small local or temporal

expediencies. Underneath these detailed actions, which seem in large

measure the product of chance, or of the selfish or sentimental effort

of some individual or party, the historian is able to trace the

underworking of some large principle which furnishes the key to the real

logic of events. The spirit of democracy has played a very small part in

the conscious effort of the democratic workers. But the inductive study

of modern history shows it as a force dominating the course of events,

directing and "operating" the _minor_ forces which worked unconsciously

in the fulfilment of its purpose. So it is with this spirit of

socialism. The professed socialist is a rare, perhaps an unnecessary,

person, who wishes to instruct and generally succeeds in scaring

humanity by bringing out into the light of conscious day the dim

principle which is working at the back of the course of events. Since

this conscious socialism is not an industrial force of any great

influence in England, it is not here necessary to discuss the claim of

the theoretic socialist to provide a solution for the problem of

poverty. But it is of importance for us to recognize clearly the nature

of the interpretation theoretic socialists place upon the order of

events set forth in this chapter, for this interpretation throws

considerable light on the industrial condition of labour.

We see that the land nationalizer claims to remove, and the land

reformer in general to abate, the evil of poverty by securing for those

dependent on the fluctuating value and uncertain tenure of wage-labour

an equal share in those land-values, the product of nature and social

activity, which are at present monopolized by a few. Now the quality of

monopoly which the land nationalizer finds in land, the professed

socialist finds also in all forms of capital. The more discreet and

thoughtful socialist in England at least does not deny that the special

material forms of capital, and the services they render, may be in part

due to the former activity of their present owners, or of those from

whom their present owners have legitimately acquired them; but he

affirms that a large part of the value of these forms of capital, and of

the interest obtained for their use, is due to a monopoly of certain

opportunities and powers which are social property just as much as land

is. The following statement by one of the ablest exponents of this

doctrine will explain what this claim signifies--

"We claim an equal right to this 'inheritance of mankind,' which by our

institutions a minority is at present enabled to monopolize, and which

it does monopolize and use in order to extort thereby an unearned

increment; and this inheritance is true capital. We mean thereby the

principle, potentiality, embodied in the axe, the spade, the plough, the

steam-engine, tools of all kinds, books or pictures, bequeathed by

thinkers, writers, inventors, discoverers, and other labourers of the

past, a social growth to which all individual claims have lapsed by

death, but from the advantages of which the masses are virtually shut

out for lack of means. The very best definition of government, even that

of to-day, is that it is the agency of society which procures title to

this treasure, stores it up, guards and gives access to it to every one,

and of which all must make the best use, first and foremost by

education."

The conscious socialist is he who, recognizing in theory the nature of

this social property inherent in all forms of capital, aims consciously

at getting possession or control of it for society, in order to solve

the problem of poverty by making the wage-earner not only a joint-owner

of the social property in land but also in capital.

In other words, it signifies that the community refuses to sanction any

absolute property on the part of any of its members, recognizing that a

large portion of the value of each individual's work is due, not to his

solitary efforts, but to the assistance lent by the community, which has

educated and secured for the individual the skill which he puts in his

work; has allowed him to make use of certain pieces of the material

universe which belongs to society; has protected him in the performance

of his work; and lastly, by providing him a market of exchange, has

given a social value to his product which cannot be attributed to his

individual efforts. In recognition of the co-operation of society in all

production of wealth, the community claims the right to impose such

conditions upon the individual as may secure for it a share in that

social value it has by its presence and activity assisted to create. The

claim of the theoretic socialist is that society by taxing or placing

other conditions upon the individual as capitalist or workman is only

interfering to secure her own. Since it is not possible to make any

satisfactory estimate of the proportion of any value produced which is

due to the individual efforts, and to society respectively, there can be

no limit assigned to the right of society to increase its claim save the

limit imposed by expediency. It will not be for the interest of society

to make so large a claim by way of regulation, restriction, or taxation,

as shall prevent the individual from applying his best efforts to the

work of production, whether his function consists in the application of

capital or of labour. The claims of many theoretic socialists transcend

this statement, and claim for society a full control of all the

instruments of production. But it is not necessary to discuss this wider

claim, for the narrower one is held sufficient to justify and explain

those slow legislative movements which come under the head of practical

socialism, as illustrated in modern English history.

Now while this conscious socialism has no large hold in England, it is

necessary to admit that the doctrine just quoted does furnish in some

measure an explanation of the unconscious socialism traceable in much of

the legislation of this century. When it is said that "we are all

socialists to-day," what is meant is, that we are all engaged in the

active promotion or approval of legislation which can only be explained

as a gradual unconscious recognition of the existence of a social

property in capital which it is held politic to secure for the public

use.

The increasing restrictions on free use of capital, the monopoly of

certain branches of industry by the State and the municipality, the

growing tendency to take money from the rich by taxation, can be

explained, reconciled, and justified on no other principle than the

recognition that a certain share of the value of these forms of wealth

is due to the community which has assisted and co-operated with the

individual owner in its creation. Whether the socialistic legislation

which, stronger than all traditions of party politics, is constantly

imposing new limitations upon the private use of capital, is desirable

or not, is not the question with which we are concerned. It is the fact

that is important. Society is constantly engaged in endeavouring,

feebly, slowly, and blindly, to relieve the stress of poverty, and the

industrial weakness of low-skilled labour, by laying hands upon certain

functions and certain portions of wealth formerly left to private

individuals, and claiming them as social functions and social wealth to

be administered for the social welfare. This is the past and present

contribution of "socialistic legislation" towards a solution of the

problem of poverty, and it seems not unlikely that the claims of society

upon these forms of social property will be larger and more

systematically enforced in the future.

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