CHAPTER VII

PEACE AND THE PRICE SYSTEM

Evidently the conception of peace on which its various spokesmen are

proceeding is by no means the same for all of them. In the current

German conception, e.g., as seen in the utterances of its many and

urgent spokesmen, peace appears to be of the general nature of a truce

between nations, whose God-given destiny it is, in time, to adjust a

claim to precedence by wager of battle. They will sometimes speak of it,

euphemistically, with a view to conciliation, as "assurance of the

national future," in which the national future is taken to mean an

opportunity for the extension of the national dominion at the expense of

some other national establishment. In the same connection one may recall

the many eloquent passages on the State and its paramount place and

value in the human economy. The State is useful for disturbing the

peace. This German notion may confidently be set down as the lowest of

the current conceptions of peace; or perhaps rather as the notion of

peace reduced to the lowest terms at which it continues to be

recognisable as such. Next beyond in that direction lies the notion of

armistice; which differs from this conception of peace chiefly in

connoting specifically a definite and relatively short interval between

warlike operations.

The conception of peace as being a period of preparation for war has

many adherents outside the Fatherland, of course. Indeed, it has

probably a wider vogue and a readier acceptance among men who interest

themselves in questions of peace and war than any other. It goes hand in

hand with that militant nationalism that is taken for granted,

conventionally, as the common ground of those international relations

that play a part in diplomatic intercourse. It is the diplomatist's

_métier_ to talk war in parables of peace. This conception of peace as a

precarious interval of preparation has come down to the present out of

the feudal age and is, of course, best at home where the feudal range of

preconceptions has suffered least dilapidation; and it carries the

feudalistic presumption that all national establishments are competitors

for dominion, after the scheme of Macchiavelli. The peace which is had

on this footing, within the realm, is a peace of subjection, more or

less pronounced according as the given national establishment is more or

less on the militant order; a warlike organisation being necessarily of

a servile character, in the same measure in which it is warlike.

In much the same measure and with much the same limitations as the

modern democratic nations have departed from the feudal system of civil

relations and from the peculiar range of conceptions which characterise

that system, they have also come in for a new or revised conception of

peace. Instead of its being valued chiefly as a space of time in which

to prepare for war, offensive or defensive, among these democratic and

provisionally pacific nations it has come to stand in the common

estimation as the normal and stable manner of life, good and commendable

in its own right. These modern, pacific, commonwealths stand on the

defensive, habitually. They are still pugnaciously national, but they

have unlearned so much of the feudal preconceptions as to leave them in

a defensive attitude, under the watch-word: Peace with honour. Their

quasi-feudalistic national prestige is not to be trifled with, though it

has lost so much of its fascination as ordinarily not to serve the

purposes of an aggressive enterprise, at least not without some shrewd

sophistication at the hands of militant politicians and their diplomatic

agents. Of course, an exuberant patriotism may now and again take on the

ancient barbarian vehemence and lead such a provisionally pacific nation

into an aggressive raid against a helpless neighbour; but it remains

characteristically true, after all, that these peoples look on the

country's peace as the normal and ordinary course of things, which each

nation is to take care of for itself and by its own force.

The ideal of the nineteenth-century statesmen was to keep the peace by a

balance of power; an unstable equilibrium of rivalries, in which it was

recognised that eternal vigilance was the price of peace by

equilibration. Since then, by force of the object-lesson of the

twentieth-century wars, it has become evident that eternal vigilance

will no longer keep the peace by equilibration, and the balance of power

has become obsolete. At the same time things have so turned that an

effective majority of the civilised nations now see their advantage in

peace, without further opportunity to seek further dominion. These

nations have also been falling into the shape of commonwealths, and so

have lost something of their national spirit.

With much reluctant hesitation and many misgivings, the statesmen of

these pacific nations are accordingly busying themselves with schemes

for keeping the peace on the unfamiliar footing of a stable equilibrium;

the method preferred on the whole being an equilibration of

make-believe, in imitation of the obsolete balance of power. There is a

meticulous regard for national jealousies and discriminations, which it

is thought necessary to keep intact. Of course, on any one of these

slightly diversified plans of keeping the peace on a stable footing of

copartnery among the pacific nations, national jealousies and national

integrity no longer have any substantial meaning. But statesmen think

and plan in terms of precedent; which comes to thinking and planning in

terms of make-believe, when altered circumstances have made the

precedents obsolete. So one comes to the singular proposal of the

statesmen, that the peace is to be kept in concert among these pacific

nations by a provision of force with which to break it at will. The

peace that is to be kept on this footing of national discriminations and

national armaments will necessarily be of a precarious kind; being, in

effect, a statesmanlike imitation of the peace as it was once kept even

more precariously by the pacific nations in severalty.

Hitherto the movement toward peace has not gone beyond this conception

of it, as a collusive safeguarding of national discrepancies by force of

arms. Such a peace is necessarily precarious, partly because armed force

is useful for breaking the peace, partly because the national

discrepancies, by which these current peace-makers set such store, are a

constant source of embroilment. What the peace-makers might logically be

expected to concern themselves about would be the elimination of these

discrepancies that make for embroilment. But what they actually seem

concerned about is their preservation. A peace by collusive neglect of

those remnants of feudalistic make-believe that still serve to divide

the pacific nations has hitherto not seriously come under advisement.

Evidently, hitherto, and for the calculable future, peace is a relative

matter, a matter of more or less, whichever of the several working

conceptions spoken of above may rule the case. Evidently, too, a peace

designed to strengthen the national establishment against eventual war,

will count to a different effect from a collusive peace of a defensive

kind among the pacific peoples, designed by its projectors to conserve

those national discrepancies on which patriotic statesmen like to dwell.

Different from both would be the value of a peace by neglect of such

useless national discriminations as now make for embroilment. A

protracted season of peace should logically have a somewhat different

cultural value according to the character of the public policy to be

pursued under its cover. So that a safe and sane conservation of the

received law and order should presumably best be effected under cover of

a collusive peace of the defensive kind, which is designed to retain

those national discrepancies intact that count for so much in the

national life of today, both as a focus of patriotic sentiment and as an

outlet for national expenditures. This plan would involve the least

derangement of the received order among the democratic peoples, although

the plan might itself undergo some change in the course of time.

* * * * *

Among the singularities of the latterday situation, in this connection,

and brought out by the experiences of the great war, is a close

resemblance between latterday warlike operations and the ordinary

processes of industry. Modern warfare and modern industry alike are

carried on by technological processes subject to surveillance and

direction by mechanical engineers, or perhaps rather experts in

engineering science of the mechanistic kind. War is not now a matter of

the stout heart and strong arm. Not that these attributes do not have

their place and value in modern warfare; but they are no longer the

chief or decisive factors in the case. The exploits that count in this

warfare are technological exploits; exploits of technological science,

industrial appliances, and technological training. As has been remarked

before, it is no longer a gentlemen's war, and the gentleman, as such,

is no better than a marplot in the game as it is played.

Certain consequences follow from this state of the case. Technology and

industrial experience, in large volume and at a high proficiency, are

indispensable to the conduct of war on the modern plan, as well as a

large, efficient and up-to-date industrial community and industrial

plant to supply the necessary material of this warfare. At the same time

the discipline of the campaign, as it impinges on the rank and file as

well as on the very numerous body of officers and technicians, is not at

cross purposes with the ordinary industrial employments of peace, or not

in the same degree as has been the case in the past, even in the recent

past. The experience of the campaign does not greatly unfit the men who

survive for industrial uses; nor does it come in as a sheer interruption

of their industrial training, or break the continuity of that range of

habits of thought which modern industry of the technological order

induces; not in the same degree as was the case under the conditions of

war as carried on in the nineteenth century. The cultural, and

particularly the technological, incidence of this modern warfare should

evidently be appreciably different from what has been experienced in the

past, and from what this past experience has induced students of these

matters to look for among the psychological effects of warlike

experience.

It remains true that the discipline of the campaign, however impersonal

it may tend to become, still inculcates personal subordination and

unquestioning obedience; and yet the modern tactics and methods of

fighting bear somewhat more on the individual's initiative, discretion,

sagacity and self-possession than once would have been true. Doubtless

the men who come out of this great war, the common men, will bring home

an accentuated and acrimonious patriotism, a venomous hatred of the

enemies whom they have missed killing; but it may reasonably be doubted

if they come away with a correspondingly heightened admiration and

affection for their betters who have failed to make good as foremen in

charge of this teamwork in killing. The years of the war have been

trying to the reputation of officials and officers, who have had to meet

uncharted exigencies with not much better chance of guessing the way

through than their subalterns have had.

By and large, it is perhaps not to be doubted that the populace now

under arms will return from the experience of the war with some net gain

in loyalty to the nation's honour and in allegiance to their masters;

particularly the German subjects,--the like is scarcely true for the

British; but a doubt will present itself as to the magnitude of this net

gain in subordination, or this net loss in self-possession. A doubt may

be permitted as to whether the common man in the countries of the

Imperial coalition, e.g., will, as the net outcome of this war

experience, be in a perceptibly more pliable frame of mind as touches

his obligations toward his betters and subservience to the irresponsible

authority exercised by the various governmental agencies, than he was at

the outbreak of the war. At that time, there is reason to believe, there

was an ominous, though scarcely threatening, murmur of discontent

beginning to be heard among the working classes of the industrial towns.

It is fair to presume, however, that the servile discipline of the

service and the vindictive patriotism bred of the fight should combine

to render the populace of the Fatherland more amenable to the

irresponsible rule of the Imperial dynasty and its subaltern royal

establishments, in spite of any slight effect of a contrary character

exercised by the training in technological methods and in self-reliance,

with which this discipline of the service has been accompanied. As to

the case of the British population, under arms or under compulsion of

necessity at home, something has already been said in an earlier

passage; and much will apparently depend, in their case, on the further

duration of the war. The case of the other nationalities involved, both

neutrals and belligerents, is even more obscure in this bearing, but it

is also of less immediate consequence for the present argument.

* * * * *

The essentially feudal virtues of loyalty and bellicose patriotism would

appear to have gained their great ascendency over all men's spirit

within the Western civilisation by force of the peculiarly consistent

character of the discipline of life under feudal conditions, whether in

war or peace; and to the same uniformity of these forces that shaped the

workday habits of thought among the feudal nations is apparently due

that profound institutionalisation of the preconceptions of patriotism

and loyalty, by force of which these preconceptions still hold the

modern peoples in an unbreakable web of prejudice, after the conditions

favoring their acquirement have in great part ceased to operate. These

preconceptions of national solidarity and international enmity have come

down from the past as an integral part of the unwritten constitution

underlying all these modern nations, even those which have departed most

widely from the manner of life to which the peoples owe these ancient

preconceptions. Hitherto, or rather until recent times, the workday

experience of these peoples has not seriously worked at cross purposes

with the patriotic spirit and its bias of national animosity; and what

discrepancy there has effectively been between the discipline of workday

life and the received institutional preconceptions on this head, has

hitherto been overborne by the unremitting inculcation of these virtues

by interested politicians, priests and publicists, who speak habitually

for the received order of things.

That order of things which is known on its political and civil side as

the feudal system, together with that era of the dynastic States which

succeeds the feudal age technically so called, was, on its industrial or

technological side, a system of trained man-power organised on a plan of

subordination of man to man. On the whole, the scheme and logic of that

life, whether in its political (warlike) or its industrial doings,

whether in war or peace, runs on terms of personal capacity, proficiency

and relations. The organisation of the forces engaged and the

constraining rules according to which this organisation worked, were of

the nature of personal relations, and the impersonal factors in the case

were taken for granted. Politics and war were a field for personal

valor, force and cunning, in practical effect a field for personal force

and fraud. Industry was a field in which the routine of life, and its

outcome, turned on "the skill, dexterity and judgment of the individual

workman," in the words of Adam Smith.

The feudal age passed, being done to death by handicraft industry,

commercial traffic, gunpowder, and the state-making politicians. But the

political States of the statemakers, the dynastic States as they may

well be called, continued the conduct of political life on the personal

plane of rivalry and jealousy between dynasties and between their

States; and in spite of gunpowder and the new military engineering,

warfare continued also to be, in the main and characteristically, a

field in which man-power and personal qualities decided the outcome, by

virtue of personal "skill, dexterity and judgment." Meantime industry

and its technology by insensible degrees underwent a change in the

direction of impersonalisation, particularly in those countries in which

state-making and its warlike enterprise had ceased, or were ceasing, to

be the chief interests and the controlling preconception of the people.

The logic of the new, mechanical industry which has supplanted

handicraft in these countries, is a mechanistic logic, which proceeds in

terms of matter-of-fact strains, masses, velocities, and the like,

instead of the "skill, dexterity and judgment" of personal agents. The

new industry does not dispense with the personal agencies, nor can it

even be said to minimise the need of skill, dexterity and judgment in

the personal agents employed, but it does take them and their attributes

for granted as in some sort a foregone premise to its main argument. The

logic of the handicraft system took the impersonal agencies for granted;

the machine industry takes the skill, dexterity and judgment of the

workmen for granted. The processes of thought, and therefore the

consistent habitual discipline, of the former ran in terms of the

personal agents engaged, and of the personal relations of discretion,

control and subordination necessary to the work; whereas the

mechanistic logic of the modern technology, more and more consistently,

runs in terms of the impersonal forces engaged, and inculcates an

habitual predilection for matter-of-fact statement, and an habitual

preconception that the findings of material science alone are

conclusive.

In those nations that have made up the advance guard of Western

civilisation in its movement out of feudalism, the disintegrating effect

of this matter-of-fact animus inculcated by the later state of the

industrial arts has apparently acted effectively, in some degree, to

discredit those preconceptions of personal discrimination on which

dynastic rule is founded. But in no case has the discipline of this

mechanistic technology yet wrought its perfect work or come to a

definitive conclusion. Meantime war and politics have on the whole

continued on the ancient plane; it may perhaps be fair to say that

politics has so continued because warlike enterprise has continued still

to be a matter of such personal forces as skill, dexterity and judgment,

valor and cunning, personal force and fraud. Latterly, gradually, but

increasingly, the technology of war, too, has been shifting to the

mechanistic plane; until in the latest phases of it, somewhere about the

turn of the century, it is evident that the logic of warfare too has

come to be the same mechanistic logic that makes the modern state of the

industrial arts.

What, if anything, is due by consequence to overtake the political

strategy and the political preconceptions of the new century, is a

question that will obtrude itself, though with scant hope of finding a

ready answer. It may even seem a rash, as well as an ungraceful,

undertaking to inquire into the possible manner and degree of

prospective decay to which the received political ideals and virtues

would appear to be exposed by consequence of this derangement of the

ancient discipline to which men have been subjected. So much, however,

would seem evident, that the received virtues and ideals of patriotic

animosity and national jealousy can best be guarded against untimely

decay by resolutely holding to the formal observance of all outworn

punctilios of national integrity and discrimination, in spite of their

increasing disserviceability,--as would be done, e.g., or at least

sought to be done, in the installation of a league of neutral nations to

keep the peace and at the same time to safeguard those "national

interests" whose only use is to divide these nations and keep them in a

state of mutual envy and distrust.

* * * * *

Those peoples who are subject to the constraining governance of this

modern state of the industrial arts, as all modern peoples are in much

the same measure in which they are "modern," are, therefore, exposed to

a workday discipline running at cross purposes with the received law and

order as it takes effect in national affairs; and to this is to be added

that, with warlike enterprise also shifted to this same

mechanistic-technological ground, war can no longer be counted on so

confidently as before to correct all the consequent drift away from the

ancient landmarks of dynastic, pseudo-dynastic, and national enterprise

in dominion.

As has been noted above, modern warfare not only makes use of, and

indeed depends on, the modern industrial technology at every turn of the

operations in the field, but it draws on the ordinary industrial

resources of the countries at war in a degree and with an urgency never

equalled. No nation can hope to make a stand in modern warfare, much

less to make headway in warlike enterprise, without the most

thoroughgoing exploitation of the modern industrial arts. Which

signifies for the purpose in hand that any Power that harbors an

imperial ambition must take measures to let its underlying population

acquire the ways and means of the modern machine industry, without

reservation; which in turn signifies that popular education must be

taken care of to such an extent as may be serviceable in this manner of

industry and in the manner of life which this industrial system

necessarily imposes; which signifies, of course, that only the

thoroughly trained and thoroughly educated nations have a chance of

holding their place as formidable Powers in this latterday phase of

civilisation. What is needed is the training and education that go to

make proficiency in the modern fashion of technology and in those

material sciences that conduce to technological proficiency of this

modern order. It is a matter of course that in these premises any

appreciable illiteracy is an intolerable handicap. So is also any

training which discourages habitual self-reliance and initiative, or

which acts as a check on skepticism; for the skeptical frame of mind is

a necessary part of the intellectual equipment that makes for advance,

invention and understanding in the field of technological proficiency.

But these requirements, imperatively necessary as a condition of warlike

success, are at cross purposes with that unquestioning respect of

persons and that spirit of abnegation that alone can hold a people to

the political institutions of the old order and make them a willing

instrument in the hands of the dynastic statesmen. The dynastic State is

apparently caught in a dilemma. The necessary preparation for warlike

enterprise on the modern plan can apparently be counted on, in the long

run, to disintegrate the foundations of the dynastic State. But it is

only in the long run that this effect can be counted on; and it is

perhaps not securely to be counted on even in a moderately long run of

things as they have run hitherto, if due precautions are taken by the

interested statesmen,--as would seem to be indicated by the successful

conservation of archaic traits in the German peoples during the past

half century under the archaising rule of the Hohenzollern. It is a

matter of habituation, which takes time, and which can at the same time

be neutralised in some degree by indoctrination.

Still, when all is told, it will probably have to be conceded that,

e.g., such a nation as Russia will fall under this rule of inherent

disability imposed by the necessary use of the modern industrial arts.

Without a fairly full and free command of these modern industrial

methods on the part of the Russian people, together with the virtual

disappearance of illiteracy, and with the facile and far-reaching system

of communication which it all involves, the Russian Imperial

establishment would not be a formidable power or a serious menace to the

pacific nations; and it is not easy to imagine how the Imperial

establishment could retain its hold and its character under the

conditions indicated.

The case of Japan, taken by itself, rests on somewhat similar lines as

these others. In time, and in this case the time-allowance should

presumably not be anything very large, the Japanese people are likely to

get an adequate command of the modern technology; which would, here as

elsewhere, involve the virtual disappearance of the present high

illiteracy, and the loss, in some passable measure, of the current

superstitiously crass nationalism of that people. There are indications

that something of that kind, and of quite disquieting dimensions, is

already under way; though with no indication that any consequent

disintegrating habits of thought have yet invaded the sacred close of

Japanese patriotic devotion.

Again, it is a question of time and habituation. With time and

habituation the emperor may insensibly cease to be of divine pedigree,

and the syndicate of statesmen who are doing business under his

signature may consequently find their measures of Imperial expansion

questioned by the people who pay the bills. But so long as the Imperial

syndicate enjoy their present immunity from outside obstruction, and can

accordingly carry on an uninterrupted campaign of cumulative predation

in Korea, China and Manchuria, the patriotic infatuation is less likely

to fall off, and by so much the decay of Japanese loyalty will be

retarded. Yet, even if allowed anything that may seem at all probable in

the way of a free hand for aggression against their hapless neighbours,

the skepticism and insubordination to personal rule that seems

inseparable in the long run from addiction to the modern industrial arts

should be expected presently to overtake the Japanese spirit of loyal

servitude. And the opportunity of Imperial Japan lies in the interval.

So also does the menace of Imperial Japan as a presumptive disturber of

the peace at large.

* * * * *

At the cost of some unavoidable tedium, the argument as regards these

and similar instances may be summarised. It appears, in the (possibly

doubtful) light of the history of democratic institutions and of modern

technology hitherto, as also from the logical character of this

technology and its underlying material sciences, that consistent

addiction to the peculiar habits of thought involved in its carrying on

will presently induce a decay of those preconceptions in which dynastic

government and national ambitions have their ground. Continued addiction

to this modern scheme of industrial life should in time eventuate in a

decay of militant nationalism, with a consequent lapse of warlike

enterprise. At the same time, popular proficiency in the modern

industrial arts, with all that that implies in the way of intelligence

and information, is indispensable as a means to any successful warlike

enterprise on the modern plan. The menace of warlike aggression from

such dynastic States, e.g., as Imperial Germany and Imperial Japan is

due to their having acquired a competent use of this modern technology,

while they have not yet had time to lose that spirit of dynastic loyalty

which they have carried over from an archaic order of things, out of

which they have emerged at a very appreciably later period (last half of

the nineteenth century) than those democratic peoples whose peace they

now menace. As has been said, they have taken over this modern state of

the industrial arts without having yet come in for the defects of its

qualities. This modern technology, with its underlying material

sciences, is a novel factor in the history of human culture, in that

addiction to its use conduces to the decay of militant patriotism, at

the same time that its employment so greatly enhances the warlike

efficiency of even a pacific people, at need, that they can not be

seriously molested by any other peoples, however valorous and numerous,

who have not a competent use of this technology. A peace at large among

the civilised nations, by loss of the militant temper through addiction

to this manner of arts of peace, therefore, carries no risk of

interruption by an inroad of warlike barbarians,--always provided that

those existing archaic peoples who might pass muster as barbarians are

brought into line with the pacific nations on a footing of peace and

equality. The disparity in point of outlook as between the resulting

peace at large by neglect of bootless animosities, on the one hand, and

those historic instances of a peaceable civilisation that have been

overwhelmed by warlike barbarian invasions, on the other hand, should be

evident.

* * * * *

It is always possible, indeed it would scarcely be surprising to find,

that the projected league of neutrals or of nations bent on peace can

not be brought to realisation at this juncture; perhaps not for a long

time yet. But it should at the same time seem reasonable to expect that

the drift toward a peaceable settlement of national discrepancies such

as has been visible in history for some appreciable time past will, in

the absence of unforeseen hindrances, work out to some such effect in

the course of further experience under modern conditions. And whether

the projected peace compact at its inception takes one form or another,

provided it succeeds in its main purpose, the long-term drift of things

under its rule should logically set toward some ulterior settlement of

the general character of what has here been spoken of as a peace by

neglect or by neutralisation of discrepancies.

It should do so, in the absence of unforeseen contingencies; more

particularly if there were no effectual factor of dissension included in

the fabric of institutions within the nation. But there should also,

e.g., be no difficulty in assenting to the forecast that when and if

national peace and security are achieved and settled beyond recall, the

discrepancy in fact between those who own the country's wealth and those

who do not is presently due to come to an issue. Any attempt to forecast

the form which this issue is to take, or the manner, incidents,

adjuncts and sequelae of its determination, would be a bolder and a more

ambiguous, undertaking. Hitherto attempts to bring this question to an

issue have run aground on the real or fancied jeopardy to paramount

national interests. How, if at all, this issue might affect national

interests and international relations, would obviously depend in the

first instance on the state of the given national establishment and the

character of the international engagements entered into in the formation

of this projected pacific league. It is always conceivable that the

transactions involving so ubiquitous an issue might come to take on an

international character and that they might touch the actual or fanciful

interests of these diverse nations with such divergent effect as to

bring on a rupture of the common understanding between them and of the

peace-compact in which the common understanding is embodied.

* * * * *

In the beginning, that is to say in the beginnings out of which this

modern era of the Western civilisation has arisen, with its scheme of

law and custom, there grew into the scheme of law and custom, by settled

usage, a right of ownership and of contract in disposal of

ownership,--which may or may not have been a salutary institutional

arrangement on the whole, under the circumstances of the early days.

With the later growth of handicraft and the petty trade in Western

Europe this right of ownership and contract came to be insisted on,

standardised under legal specifications, and secured against molestation

by the governmental interests; more particularly and scrupulously among

those peoples that have taken the lead in working out that system of

free or popular institutions that marks the modern civilised nations. So

it has come to be embodied in the common law of the modern world as an

inviolable natural right. It has all the prescriptive force of legally

authenticated immemorial custom.

Under the system of handicraft and petty trade this right of property

and free contract served the interest of the common man, at least in

much of its incidence, and acted in its degree to shelter industrious

and economical persons from hardship and indignity at the hands of their

betters. There seems reason to believe, as is commonly believed, that so

long as that relatively direct and simple scheme of industry and trade

lasted, the right of ownership and contract was a salutary custom, in

its bearing on the fortunes of the common man. It appears also, on the

whole, to have been favorable to the fuller development of the

handicraft technology, as well as to its eventual outgrowth into the new

line of technological expedients and contrivances that presently gave

rise to the machine industry and the large-scale business enterprise.

The standard theories of economic science have assumed the rights of

property and contract as axiomatic premises and ultimate terms of

analysis; and their theories are commonly drawn in such a form as would

fit the circumstances of the handicraft industry and the petty trade,

and such as can be extended to any other economic situation by shrewd

interpretation. These theories, as they run from Adam Smith down through

the nineteenth century and later, appear tenable, on the whole, when

taken to apply to the economic situation of that earlier time, in

virtually all that they have to say on questions of wages, capital,

savings, and the economy and efficiency of management and production by

the methods of private enterprise resting on these rights of ownership

and contract and governed by the pursuit of private gain. It is when

these standard theories are sought to be applied to the later situation,

which has outgrown the conditions of handicraft, that they appear

nugatory or meretricious. The "competitive system" which these standard

theories assume as a necessary condition of their own validity, and

about which they are designed to form a defensive hedge, would, under

those earlier conditions of small-scale enterprise and personal contact,

appear to have been both a passably valid assumption as a premise and a

passably expedient scheme of economic relations and traffic. At that

period of its life-history it can not be said consistently to have

worked hardship to the common man; rather the reverse. And the common

man in that time appears to have had no misgivings about the excellence

of the scheme or of that article of Natural Rights that underlies it.

This complexion of things, as touches the effectual bearing of the

institution of property and the ancient customary rights of ownership,

has changed substantially since the time of Adam Smith. The "competitive

system," which he looked to as the economic working-out of that "simple

and obvious system of natural liberty" that always engaged his best

affections, has in great measure ceased to operate as a routine of

natural liberty, in fact; particularly in so far as touches the fortunes

of the common man, the impecunious mass of the people. _De jure_, of

course, the competitive system and its inviolable rights of ownership

are a citadel of Natural Liberty; but _de facto_ the common man is now,

and has for some time been, feeling the pinch of it. It is law, and

doubtless it is good law, grounded in immemorial usage and authenticated

with statute and precedent. But circumstances have so changed that this

good old plan has in a degree become archaic, perhaps unprofitable, or

even mischievous, on the whole, and especially as touches the conditions

of life for the common man. At least, so the common man in these modern

democratic and commercial countries is beginning to apprehend the

matter.

Some slight and summary characterisation of these changing circumstances

that have affected the incidence of the rights of property during modern

times may, therefore, not be out of place; with a view to seeing how far

and why these rights may be due to come under advisement and possible

revision, in case a state of settled peace should leave men's attention

free to turn to these internal, as contrasted with national interests.

Under that order of handicraft and petty trade that led to the

standardisation of these rights of ownership in the accentuated form

which belongs to them in modern law and custom, the common man had a

practicable chance of free initiative and self-direction in his choice

and pursuit of an occupation and a livelihood, in so far as rights of

ownership bore on his case. At that period the workman was the main

factor in industry and, in the main and characteristically, the question

of his employment was a question of what he would do. The material

equipment of industry--the "plant," as it has come to be called--was

subject of ownership, then as now; but it was then a secondary factor

and, notoriously, subsidiary to the immaterial equipment of skill,

dexterity and judgment embodied in the person of the craftsman. The body

of information, or general knowledge, requisite to a workmanlike

proficiency as handicraftsman was sufficiently slight and simple to fall

within the ordinary reach of the working class, without special

schooling; and the material equipment necessary to the work, in the way

of tools and appliances, was also slight enough, ordinarily, to bring it

within the reach of the common man. The stress fell on the acquirement

of that special personal skill, dexterity and judgment that would

constitute the workman a master of his craft. Given a reasonable measure

of pertinacity, the common man would be able to compass the material

equipment needful to the pursuit of his craft, and so could make his way

to a livelihood; and the inviolable right of ownership would then serve

to secure him the product of his own industry, in provision for his own

old-age and for a fair start in behalf of his children. At least in the

popular conception, and presumably in some degree also in fact, the

right of property so served as a guarantee of personal liberty and a

basis of equality. And so its apologists still look on the institution.

In a very appreciable degree this complexion of things and of popular

conceptions has changed since then; although, as would be expected, the

change in popular conceptions has not kept pace with the changing

circumstances. In all the characteristic and controlling lines of

industry the modern machine technology calls for a very considerable

material equipment; so large an equipment, indeed, that this plant, as

it is called, always represents a formidable amount of invested wealth;

and also so large that it will, typically, employ a considerable number

of workmen per unit of plant. On the transition to the machine

technology the plant became the unit of operation, instead of the

workman, as had previously been the case; and with the further

development of this modern technology, during the past hundred and fifty

years or so, the unit of operation and control has increasingly come to

be not the individual or isolated plant but rather an articulated group

of such plants working together as a balanced system and keeping pace in

common, under a collective business management; and coincidently the

individual workman has been falling into the position of an auxiliary

factor, nearly into that of an article of supply, to be charged up as an

item of operating expenses. Under this later and current system,

discretion and initiative vest not in the workman but in the owners of

the plant, if anywhere. So that at this point the right of ownership has

ceased to be, in fact, a guarantee of personal liberty to the common

man, and has come to be, or is coming to be, a guarantee of dependence.

All of which engenders a feeling of unrest and insecurity, such as to

instill a doubt in the mind of the common man as to the continued

expediency of this arrangement and of the prescriptive rights of

property on which the arrangement rests.

There is also an insidious suggestion, carrying a sinister note of

discredit, that comes in from ethnological science at this point; which

is adapted still further to derange the common man's faith in this

received institution of ownership and its control of the material

equipment of industry. To students interested in human culture it is a

matter of course that this material equipment is a means of utilising

the state of the industrial arts; that it is useful in industry and

profitable to its owners only because and in so far as it is a creation

of the current technological knowledge and enables its owner to

appropriate the usufruct of the current industrial arts. It is likewise

a matter of course that this technological knowledge, that so enables

the material equipment to serve the purposes of production and of

private gain, is a free gift of the community at large to the owners of

industrial plant; and, under latterday conditions, to them exclusively.

The state of the industrial arts is a joint heritage of the community at

large, but where, as in the modern countries, the work to be done by

this technology requires a large material equipment, the usufruct of

this joint heritage passes, in effect, into the hands of the owners of

this large material equipment.

These owners have, ordinarily, contributed nothing to the technology,

the state of the industrial arts, from which their control of the

material equipment of industry enables them to derive a gain. Indeed, no

class or condition of men in the modern community--with the possible

exception of politicians and the clergy--can conceivably contribute less

to the community's store of technological knowledge than the large

owners of invested wealth. By one of those singular inversions due to

production being managed for private gain, it happens that these

investors are not only not given to the increase and diffusion of

technological knowledge, but they have a well-advised interest in

retarding or defeating improvements in the industrial arts in detail.

Improvements, innovations that heighten productive efficiency in the

general line of production in which a given investment is placed, are

commonly to be counted on to bring "obsolescence by supersession" to the

plant already engaged in that line; and therefore to bring a decline in

its income-yielding capacity, and so in its capital or investment value.

Invested capital yields income because it enjoys the usufruct of the

community's technological knowledge; it has an effectual monopoly of

this usufruct because this machine technology requires large material

appliances with which to do its work; the interest of the owners of

established industrial plant will not tolerate innovations designed to

supersede these appliances. The bearing of ownership on industry and on

the fortunes of the common man is accordingly, in the main, the bearing

which it has by virtue of its monopoly control of the industrial arts,

and its consequent control of the conditions of employment and of the

supply of vendible products. It takes effect chiefly by inhibition and

privation; stoppage of production in case it brings no suitable profit

to the investor, refusal of employment and of a livelihood to the

workmen in case their product does not command a profitable price in the

market.

The expediency of so having the nation's industry managed on a footing

of private ownership in the pursuit of private gain, by persons who can

show no equitable personal claim to even the most modest livelihood, and

whose habitual method of controlling industry is sabotage--refusal to

let production go on except it affords them an unearned income--the

expediency of all this is coming to be doubted by those who have to pay

the cost of it. And it does not go far to lessen their doubts to find

that the cost which they pay is commonly turned to no more urgent or

useful purpose than a conspicuously wasteful consumption of

superfluities by the captains of sabotage and their domestic

establishments.

This may not seem a veracious and adequate account of these matters; it

may, in effect, fall short of the formulation: The truth, the whole

truth, and nothing but the truth; nor does the question here turn on its

adequacy as a statement of fact. Without prejudice to the question of

its veracity and adequacy, it is believed to be such an account of these

matters as will increasingly come easy and seem convincing to the common

man who, in an ever increasing degree, finds himself pinched with

privation and insecurity by a run of facts which will consistently bear

this construction, and who perforce sees these facts from the prejudiced

standpoint of a loser. To such a one, there is reason to believe, the

view so outlined will seem all the more convincing the more attentively

the pertinent facts and their bearing on his fortunes are considered.

How far the contrary prejudice of those whose interest or training

inclines them the other way may lead them to a different construction of

these pertinent facts, does not concern the present argument; which has

to do with this run of facts only as they bear on the prospective frame

of mind of that unblest mass of the population who will have opportunity

to present their proposals when peace at large shall have put national

interests out of their preferential place in men's regard.

At the risk of what may seem an excessively wide digression, there is

something further to be said of the capitalistic sabotage spoken of

above. The word has by usage come to have an altogether ungraceful air

of disapproval. Yet it signifies nothing more vicious than a deliberate

obstruction or retardation of industry, usually by legitimate means, for

the sake of some personal or partisan advantage. This morally colorless

meaning is all that is intended in its use here. It is extremely common

in all industry that is designed to supply merchantable goods for the

market. It is, in fact, the most ordinary and ubiquitous of all

expedients in business enterprise that has to do with supplying the

market, being always present in the businessman's necessary

calculations; being not only a usual and convenient recourse but quite

indispensable as an habitual measure of business sagacity. So that no

personal blame can attach to its employment by any given businessman or

business concern. It is only when measures of this nature are resorted

to by employees, to gain some end of their own, that such conduct

becomes (technically) reprehensible.

Any businesslike management of industry is carried on for gain, which is

to be got only on condition of meeting the terms of the market. The

price system under which industrial business is carried on will not

tolerate production in excess of the market demand, or without due

regard to the expenses of production as determined by the market on the

side of the supplies required. Hence any business concern must adjust

its operations, by due acceleration, retardation or stoppage, to the

market conditions, with a view to what the traffic will bear; that is to

say, with a view to what will yield the largest obtainable net gain. So

long as the price system rules, that is to say so long as industry is

managed on investment for a profit, there is no escaping this necessity

of adjusting the processes of industry to the requirements of a

remunerative price; and this adjustment can be taken care of only by

well-advised acceleration or curtailment of the processes of industry;

which answers to the definition of sabotage. Wise business management,

and more particularly what is spoken of as safe and sane business

management, therefore, reduces itself in the main to a sagacious use of

sabotage; that is to say a sagacious limitation of productive processes

to something less than the productive capacity of the means in hand.

* * * * *

To anyone who is inclined to see these matters of usage in the light of

their history and to appraise them as phenomena of habituation,

adaptation and supersession in the sequence of cultural proliferation,

there should be no difficulty in appreciating that this institution of

ownership that makes the core of the modern institutional structure is

a precipitate of custom, like any other item of use and wont; and that,

like any other article of institutional furniture, it is subject to the

contingencies of supersession and obsolescence. If prevalent habits of

thought, enforced by the prevalent exigencies of life and livelihood,

come to change in such a way as to make life under the rule imposed by

this institution seem irksome, or intolerable, to the mass of the

population; and if at the same time things turn in such a way as to

leave no other and more urgent interest or exigency to take precedence

of this one and hinder its being pushed to an issue; then it should

reasonably follow that contention is due to arise between the unblest

mass on whose life it is a burden and the classes who live by it. But it

is, of course, impossible to state beforehand what will be the precise

line of cleavage or what form the division between the two parties in

interest will take. Yet it is contained in the premises that, barring

unforeseen contingencies of a formidable magnitude, such a cleavage is

due to follow as a logical sequel of an enduring peace at large. And it

is also well within the possibilities of the case that this issue may

work into an interruption or disruption of the peace between the

nations.

In this connection it may be called to mind that the existing

governmental establishments in these pacific nations are, in all cases,

in the hands of the beneficiary, or kept classes,--beneficiaries in the

sense in which a distinction to that effect comes into the premises of

the case at this point. The responsible officials and their chief

administrative officers,--so much as may at all reasonably be called the

"Government" or the "Administration,"--are quite invariably and

characteristically drawn from these beneficiary classes; nobles,

gentlemen, or business men, which all comes to the same thing for the

purpose in hand; the point of it all being that the common man does not

come within these precincts and does not share in these counsels that

assume to guide the destiny of the nations.

Of course, sporadically and ephemerally, a man out of the impecunious

and undistinguished mass may now and again find his way within the

gates; and more frequently will a professed "Man of the People" sit in

council. But that the rule holds unbroken and inviolable is sufficiently

evident in the fact that no community will let the emoluments of office

for any of its responsible officials, even for those of a very scant

responsibility, fall to the level of the habitual livelihood of the

undistinguished populace, or indeed to fall below what is esteemed to be

a seemly income for a gentleman. Should such an impecunious one be

thrown up into a place of discretion in the government, he will

forthwith cease to be a common man and will be inducted into the rank of

gentleman,--so far as that feat can be achieved by taking thought or by

assigning him an income adequate to a reputably expensive manner of

life. So obvious is the antagonism between a vulgar station in life and

a position of official trust, that many a "selfmade man" has advisedly

taken recourse to governmental position, often at some appreciable cost,

from no apparent motive other than its known efficacy as a Levitical

corrective for a humble origin. And in point of fact, neither here nor

there have the underbred majority hitherto learned to trust one of their

own kind with governmental discretion; which has never yet, in the

popular conviction, ceased to be a perquisite of the gently-bred and the

well-to-do.

Let it be presumed that this state of things will continue without

substantial alteration, so far as regards the complexion of the

governmental establishments of these pacific nations, and with such

allowance for overstatement in the above characterisation as may seem

called for. These governmental establishments are, by official position

and by the character of their personnel, committed more or less

consistently to the maintenance of the existing law and order. And

should no substantial change overtake them as an effect of the war

experience, the pacific league under discussion would be entered into by

and between governments of this complexion. Should difficulties then

arise between those who own and those who do not, in any one of these

countries, it would become a nice question whether the compact to

maintain the peace and national integrity of the several nations

comprised in the league should be held to cover the case of internal

dissensions and possible disorders partaking of the character of revolt

against the established authorities or against the established

provisions of law. A strike of the scope and character of the one

recently threatened, and narrowly averted, on the American railroads,

e.g., might easily give rise to disturbances sufficiently formidable to

raise a question of the peace league's jurisdiction; particularly if

such a disturbance should arise in a less orderly and less isolated

country than the American republic; so as unavoidably to carry the

effects of the disturbance across the national frontiers along the lines

of industrial and commercial intercourse and correlation. It is always

conceivable that a national government standing on a somewhat

conservative maintenance of the received law and order might feel itself

bound by its conception of the peace to make common cause with the

keepers of established rights in neighboring states, particularly if

the similar interests of their own nation were thought to be placed in

jeopardy by the course of events.

Antecedently it seems highly probable that the received rights of

ownership and disposal of property, particularly of investment, will

come up for advisement and revision so soon as a settled state of peace

is achieved. And there should seem to be little doubt but this revision

would go toward, or at least aim at the curtailment or abrogation of

these rights; very much after the fashion in which the analogous vested

rights of feudalism and the dynastic monarchy have been revised and in

great part curtailed or abrogated in the advanced democratic countries.

Not much can confidently be said as to the details of such a prospective

revision of legal rights, but the analogy of that procedure by which

these other vested rights have been reduced to a manageable disability,

suggests that the method in the present case also would be by way of

curtailment, abrogation and elimination. Here again, as in analogous

movements of disuse and disestablishment, there would doubtless be much

conservative apprehension as to the procuring of a competent substitute

for the supplanted methods of doing what is no longer desirable to be

done; but here as elsewhere, in a like conjuncture, the practicable way

out would presumably be found to lie along the line of simple disuse and

disallowance of class prerogative. Taken at its face value, without

unavoidable prejudice out of the past, this question of a substitute to

replace the current exploitation of the industrial arts for private gain

by capitalistic sabotage is not altogether above a suspicion of

drollery.

Yet it is not to be overlooked that private enterprise on the basis of

private ownership is the familiar and accepted method of conducting

industrial affairs, and that it has the sanction of immemorial usage, in

the eyes of the common man, and that it is reenforced with the urgency

of life and death in the apprehension of the kept classes. It should

accordingly be a possible outcome of such a peace as would put away

international dissension, that the division of classes would come on in

a new form, between those who stand on their ancient rights of

exploitation and mastery, and those who are unwilling longer to submit.

And it is quite within the possibilities of the case that the division

of opinion on these matters might presently shift back to the old

familiar ground of international hostilities; undertaken partly to put

down civil disturbances in given countries, partly by the more archaic,

or conservative, peoples to safeguard the institutions of the received

law and order against inroads from the side of the iconoclastic ones.

* * * * *

In the apprehension of those who are speaking for peace between the

nations and planning for its realisation, the outlook is that of a

return to, or a continuance of, the state of things before the great war

came on, with peace and national security added, or with the danger of

war eliminated. Nothing appreciable in the way of consequent innovation,

certainly nothing of a serious character, is contemplated as being among

the necessary consequences of such a move into peace and security.

National integrity and autonomy are to be preserved on the received

lines, and international division and discrimination is to be managed as

before, and with the accustomed incidents of punctilio and pecuniary

equilibration. Internationally speaking, there is to dawn an era of

diplomacy without afterthought, whatever that might conceivably mean.

There is much in the present situation that speaks for such an

arrangement, particularly as an initial phase of the perpetual peace

that is aimed at, whatever excursive variations might befall presently,

in the course of years. The war experience in the belligerent countries

and the alarm that has disturbed the neutral nations have visibly raised

the pitch of patriotic solidarity in all these countries; and patriotism

greatly favors the conservation of established use and wont; more

particularly is it favorable to the established powers and policies of

the national government. The patriotic spirit is not a spirit of

innovation. The chances of survival, and indeed of stabilisation, for

the accepted use and wont and for the traditional distinctions of class

and prescriptive rights, should therefore seem favorable, at any rate in

the first instance.

Presuming, therefore, as the spokesmen of such a peace-compact are

singularly ready to presume, that the era of peace and good-will which

they have in view is to be of a piece with the most tranquil decades of

the recent past, only more of the same kind, it becomes a question of

immediate interest to the common man, as well as to all students of

human culture, how the common man is to fare under this régime of law

and order,--the mass of the population whose place it is to do what is

to be done, and thereby to carry forward the civilisation of these

pacific nations. It may not be out of place to recall, by way of

parenthesis, that it is here taken for granted as a matter of course

that all governmental establishments are necessarily conservative in all

their dealings with this heritage of culture, except so far as they may

be reactionary. Their office is the stabilisation of archaic

institutions, the measure of archaism varying from one to another.

With due stabilisation and with a sagacious administration of the

established scheme of law and order, the common man should find himself

working under conditions and to results of the familiar kind; but with

the difference that, while legal usage and legal precedent remain

unchanged, the state of the industrial arts can confidently be expected

to continue its advance in the same general direction as before, while

the population increases after the familiar fashion, and the investing

business community pursues its accustomed quest of competitive gain and

competitive spending in the familiar spirit and with cumulatively

augmented means. Stabilisation of the received law and order will not

touch these matters; and for the present it is assumed that these

matters will not derange the received law and order. The assumption may

seem a violent one to the students of human culture, but it is a simple

matter of course to the statesmen.

To this piping time of peace the nearest analogues in history would seem

to be the Roman peace, say, of the days of the Antonines, and passably

the British peace of the Victorian era. Changes in the scheme of law and

order supervened in both of these instances, but the changes were, after

all, neither unconscionably large nor were they of a subversive nature.

The scheme of law and order, indeed, appears in neither instance to have

changed so far as the altered circumstances would seem to have called

for. To the common man the Roman peace appears to have been a peace by

submission, not widely different from what the case of China has

latterly brought to the appreciation of students. The Victorian peace,

which can be appreciated more in detail, was of a more genial character,

as regards the fortunes of the common man. It started from a reasonably

low level of hardship and _de facto_ iniquity, and was occupied with

many prudent endeavours to improve the lot of the unblest majority; but

it is to be admitted that these prudent endeavours never caught up with

the march of circumstances. Not that these prudent measures of

amelioration were nugatory, but it is clear that they were not an

altogether effectual corrective of the changes going on; they were, in

effect, systematically so far in arrears as always to leave an uncovered

margin of discontent with current conditions. It is a fact of history

that very appreciable sections of the populace were approaching an

attitude of revolt against what they considered to be intolerable

conditions when that era closed. Much of what kept them within bounds,

that is to say within legal bounds, was their continued loyalty to the

nation; which was greatly, and for the purpose needfully, reenforced by

a lively fear of warlike aggression from without. Now, under the

projected _pax orbis terrarum_ all fear of invasion, it is hopefully

believed, will be removed; and with the disappearance of this fear

should also disappear the drag of national loyalty on the counsels of

the underbred.

An Inquiry into the Nature of Peace and the Terms of Its Perpetuation · 第 7 / 8 章