CHAPTER VI.

THE STATE AND SOCIETY.

During the last few decades and in all countries of civilization, the

economic life of society has assumed an uncommonly rapid pace of

development, a development that every progress on any field of human

activity adds swing to. Our social relations have thereby been thrown

into a state of unrest, fermentation and dissolution never known before.

The ruling classes no longer feel the ground safe under them, nor do

existing institutions any longer possess the firmness requisite to

breast the storm, that is approaching from all sides. A feeling of

uneasiness, of insecurity and of dissatisfaction has seized upon all

circles, high and low. The paroxysmal efforts put forth by the ruling

classes to end this unbearable state of things by means of tinkering at

the body social prove themselves vain and inadequate. The general sense

of increasing insecurity, that comes from these failures, increases

their uneasiness and discomfort. Hardly have they inserted a beam in the

shape of some law into the rickety structure, than they discover ten

other places where shoring is still more urgent. All along they are at

perpetual strife among themselves and deeply rent by differences of

opinion. What one set deems necessary, in order somewhat to calm and

reconcile the increasingly discontented masses, the other considers as

going too far, and unpardonable weakness and pliancy, only calculated to

prick the longing after greater concessions. Striking evidences thereof

are the debates in the 1894-5 sessions of the Reichstag, both on the

floor of the house and in committee, on the so-called "revolutionary

bill," as well as numerous other discussions in all parliaments. Within

the ruling classes themselves there exist unbridgeable contrasts, and

they sharpen the social conflicts.

Governments--and not in Germany alone--are shaking like reeds in the

wind. They must lean on something: without support they cannot exist:

they now lean on this side, then on that. In no progressive country of

Europe is there a Government with a lasting parliamentary majority, on

which it can count with safety. Majorities are breaking up and

dissolving; and the ever changing course, in Germany, especially,

undermines the last vestige of confidence that the ruling class had in

themselves. To-day one set is anvil, the other the hammer; to-morrow it

is the other way. The one tears down what the other painfully builds up.

The confusion is ever greater; the discontent ever more lasting; the

causes of friction multiply and consume in a few months more energies

than years did formerly. Along with all that, material sacrifices,

called for by manifold taxes, swell beyond all measure.

In the midst of all this, our sapient statesmen are lulling themselves

in wondrous illusions. With an eye to sparing property and the rich,

forms of taxation are selected that smite the needy classes heaviest,

and they are decreed with the belief that, seeing a large portion of the

masses have not yet discovered their real nature, neither will they be

felt. This is an error. The masses to-day understand fully the nature of

indirect imports and taxes upon the necessaries of life. Their growing

political education and perspicuity disclose to them the gross injustice

of the same; and they are all the more sensitive to these burdens by

reason of the wretchedness of their economic conditions, especially

where families are large. The rise of prices in the necessaries of

life--due to indirect imposts, or to causes that bring on similar

results, such as the premiums on brandy and sugar that, to the amount of

dozens of millions, a part of the ruling class pockets yearly at the

expense of the poor of the kingdom, and that it seeks to raise still

higher--are realized to be a gross injustice, a heavy burden, measures

that stand in odd contradiction with the nature of the so-called

Christian State, the State of Social Reform. These measures extinguish

the last spark of faith in the sense of justice of the ruling classes,

to a degree that is serious to these. It changes nothing in the final

effect of these measures that the draining is done in pennies. The

increase in the expenditure is there, and is finally sensible to the

feeling and the sight of all. Hundreds upon hundreds of millions cannot

be squeezed out of practically empty pockets, without the owners of the

pockets becoming aware of the lifting. The strong pressure of direct

taxation, directs the dissatisfaction among the poor against the State;

the still stronger indirect taxation, _directs the discontent against

society also, the evil being felt to be of a social as well as political

character_. In that there is progress. Him whom the gods would destroy,

they first make blind.

In the endeavor to do justice to the most opposed interests, laws are

heaped upon laws; but no old one is thoroughly repealed, nor new one

thoroughly enforced. Everything is done by halves, giving satisfaction

in no direction. The requirements of civilization that spring from the

life of the people, demand some attention, unless everything is to be

risked; even the fractional way they are attended to, demands

considerable sacrifice, all the more seeing that our public institutions

are overrun by parasites. At the same time, not only are all the

unproductive institutions, wholly at variance with the trend of

civilization, continued in force, but, due to the existing conflicts of

interests, they are rather enlarged, and thus they become all the more

burdensome and oppressive in the measure that increasing popular

intelligence ever more loudly pronounces them superfluous. Police,

armies, courts of law, prisons, the whole administrative apparatus--all

are enlarged ever more, and become ever more expensive. And yet neither

external nor internal security is obtained. The reverse follows.

A wholly unnatural state of things has gradually arisen in the

international relations of the several nations. The relations between

nation and nation multiply in the measure that the production of goods

increases; that, thanks to improved transportation, the exchange of this

mass of merchandise is facilitated; and that the economic and scientific

achievements of each become the public possession of all. Treaties of

commerce are concluded; expensive routes of traffic--Suez Canals, St.

Gotthard Tunnels--are opened with international funds. Individual

countries support with heavy subsidies steamship lines that help to

promote intercourse between several nations. The Postal Union--a step of

first rank in civilization--is established; international conventions

are convoked for all imaginable practical and scientific purposes; the

literary products of genius of any nation are spread abroad by

translations into the leading languages. Thus the tendency is ever more

strongly marked toward the internationalizing, the fraternizing of all

peoples. Nevertheless, the political, the military state of the nations

of Europe stands in strange contrast to this general development. The

hatred of nation against nation, Chauvinism, is artificially nourished

by all. The ruling classes seek everywhere to keep green the belief that

it is the peoples who are hostilely inclined toward one another, and

only wait for the moment when one of them may fall upon another and

destroy it. The competitive struggle between the capitalists of several

countries, together with their jealousy of one another, assume upon the

international field the character of a struggle between the capitalists

of one country against those of another, and, backed by the political

blindness of the large masses, it conjures into existence a contest of

military armaments such as the world has never seen before. This contest

has brought forth armies of magnitudes that never were known; it

produced implements of murder and destruction for land and naval warfare

of such perfection as is possible only in an age of such advanced

technique as ours. The contest drives these antagonisms to a head, it

incites a development of means of destruction that finally destroy

themselves. The support of the armies and navies demand sacrifices that

yearly become larger, and that finally ruin the richest nation. Germany,

for instance, had, according to the imperial budget of 1894-95, a

regular army and navy outlay of nearly 700 million marks--inclusive of

pensions and of interest on the national debt, which amounts in round

figures to two milliards, incurred mainly for purposes of war. Under

these war expenses, the appropriations for educational and other

purposes of culture suffer severely; the most pressing needs in this

direction are neglected; and that side of the State, devoted to

so-called external defence, acquires a preponderance that undermines the

original purpose of the State itself. The increasing armies absorb the

healthiest and most vigorous portion of the nation; for their

improvement all mental and physical forces are enlisted in a way as if

education in mass-murder were the highest mission of our times.

Furthermore, implements of war as of murder are continuously improved:

they have attained--in point of swiftness, range and power--a perfection

that renders them fearful to friend and foe. If some day this tremendous

apparatus is set in operation--when the hostile forces of Europe will

take the field with twelve or fourteen million men--the fact will appear

that it has become uncontrollable. There is no general who could command

such masses; there is no field vast enough to collect and set them up;

no administrative apparatus that could nourish them for any length of

time. If battles are delivered, hospitals would be lacking to shelter

the wounded: the interment of the numerous dead would be an

impossibility.

When to all this is added the frightful disturbances and devastations,

produced to-day by a European _war on the economic-field_, there is no

exaggeration in the saying: "_the next war is the last war_." The number

of bankruptcies will be unparalleled; export stops--and thereby

thousands of factories are condemned to idleness; the supply of food

ceases--and thereby the prices of the means of life rise enormously. The

number of families whose breadwinner is in the field runs up into the

millions, and most of them must be supported. Whence shall the means

come for all that?

The political and military state of Europe has taken a development that

cannot choose but end in a catastrophe, which will drag capitalist

society down to its ruin. Having reached the height of its development,

it produces conditions that end with rendering its own existence

impossible; it digs its own grave; it slays itself with the identical

means that itself, as the most revolutionary of all previous social

systems, has called into life.

Gradually a large portion of our municipalities are arriving at a

desperate pass: they hardly know how to meet the increasing demands upon

themselves. It is more particularly upon our rapidly growing large

cities, and upon the localities situated in industrial districts, that

the quickened increase of population makes a mass of demands, which the

generally poor communities can come up to only by raising taxes and

incurring debts. The budgets leap upward from year to year for school

buildings, and street paving, for lighting, draining and water works;

for sanitary, public and educational purposes; for the police and the

administration. At the same time, the favorably situated minority makes

the most expensive demands upon the community. It demands higher

institutions of education, theatres, the opening of particularly fine

city quarters with lighting, pavement, etc., to match. However justly

the majority may complain of the preference, it lies in the very nature

of modern affairs. The minority has the power and uses it to satisfy its

social wants as much as possible at the expense of the collectivity. In

and of themselves nothing can be said against these heightened social

wants: they denote progress; the fault is only that their satisfaction

falls mainly to the lot of the property classes, while all others should

share them. A further evil lies in that often the administration is not

the best, and yet is expensive. The officials often are inadequate; they

are not sufficiently equipped for the many-sided demands made upon them,

demands that often presuppose thorough knowledge. The members of

Aldermanic Boards have generally so much to do and to attend to in their

own private affairs that they are unable to make the sacrifices demanded

for the full exercise of these public duties. Often are these posts used

for the promotion of private interests, to the serious injury of those

of the community. The results fall upon the taxpayers. Modern society

cannot think of undertaking a thorough change in these conditions. It is

powerless and helpless. It would have to remove itself, and that, of

course, it will not. Whatever the manner in which taxes be imposed,

dissatisfaction increases steadily. In a few decades, most of our

municipalities will be unable to satisfy their needs under their present

form of administration and of raising revenues. On the municipal as well

as on the national field, the need of a radical change is manifest: it

is upon the municipalities that the largest social demands are made: it

is society _in nuce_: it is the kernel from which, so soon as the will

and the power shall be there, the social change will radiate. How can

justice be done to-day, when private interests dominate and the

interests of the commonweal are made subservient?

Such, in short, is the state of things in the nation and in the

municipality. They are both but the reflection of the economic life of

society.

* * * * *

The struggle for existence in our economic life grows daily more

gigantic. The war of all against all has broken out with virulence; it

is conducted pitilessly, often regardless of the weapon used. The

well-known French expression: "_ote-toi de la, que je m'y mette_." (Get

away, that I may step in) is carried out in practice with vigorous

elbowings, cuffings, and pinchings. The weaker must yield to the

stronger. Where physical strength--which here is the power of money, of

property--does not suffice, the most cunning and unworthy means are

resorted to. Lying, swindle, deceit, forgery, perjury--the very blackest

crimes are often committed in order to reach the coveted object. As in

this struggle for existence one individual transgresses against the

other, the same happens with class against class, sex against sex, age

against age. Profit is the sole regulator of human feelings; all other

considerations must yield. Thousands upon thousands of workingmen and

working-women are, the moment profit demands it, thrown upon the

sidewalk, and, after their last savings have been spent, turned to

public charity or forced to emigrate. Workingmen travel, so to speak, in

herds from place to place, criss-cross across the country, and are

regarded by "decent" society with all the more fear and horror, seeing

that the continuity of their enforced idleness deteriorates their

external appearance, and, as a consequence, demoralizes them internally.

Decent society has no inkling of what it means to be forced, for months

at a stretch, to be denied the simplest exigencies of order and

cleanliness, to wander from place to place with a hungry stomach, and to

earn, generally, nothing but ill-concealed fear and contempt, especially

from those quarters that are the very props of this system. The families

of these wretches suffer all along utmost distress--a distress that not

infrequently drives the parents, out of desperation, to frightful crimes

upon their own children and themselves. The last years have furnished

numerous shocking instances of whole families falling a prey to murder

and suicide. Let one instance do for many. The private correspondent,

S----, in Berlin, 45 years of age, with a still handsome wife 39 years

old, and a daughter of 12, is without work and starving. The wife

decides, with the consent of her husband, to turn prostitute. The police

gets wind thereof. The wife is placed under moral control. The family,

overcome with shame and desperate, agree, all three, to poison

themselves, and carry out their resolve on March 1, 1883.[160] A few

days before, the leading circles of Berlin celebrated great court

festivities at which hundreds of thousands were squandered.

Such are the shocking contrasts of modern society--and yet we live in

"the best of all possible worlds." Berlin has since then often witnessed

the holocaust of whole families due to material want. In 1894 the

spectacle was frequent, to an extent that called forth general horror;

nor are the instances few, reported from large and small towns within

and without Germany. This murder and suicide of whole families is a

phenomenon peculiar to modern times, and an eloquent sign of the sorry

economic state that society is in.

This general want also drives women and girls in increasing numbers into

the arms of prostitution. Demoralization and crime are heaped up, and

assume the most manifold forms. The only thing that prospers is the

jails, penitentiaries and so-called houses of correction, no longer able

to accommodate the mass that is sent to them. The crimes of all sorts

and their increase are intimately connected with the economic state of

society--a fact, however, that the latter will not have. Like the

ostrich, it sticks its head in the sand, to avoid having to admit the

incriminating state of things, and it lies to the point of deceiving

itself into the belief that the fault lies with the laziness of the

workingmen, with their love of pleasure, and with their irreligiousness.

This is a self-deception of the most dangerous, or a hypocrisy of the

most repulsive, sort. The more unfavorable the state of society is for

the majority, all the more numerous and serious are the crimes

committed. The struggle for existence assumes its rudest and most

violent aspect: it transfers man into conditions where each sees a

mortal enemy in the other. The social bonds become looser every

day.[161]

The ruling classes, who do not probe matters to the bottom, or do not

like to, seek to meet the evil after their own fashion. If poverty and

want, and, as a result therefrom, demoralization and crime increase, the

source of the evil is not searched after, so that it may be stopped; no;

the products of the conditions are punished. The more gigantic the evils

grow, and the numbers of evil-doers multiply in proportion,

proportionately severe penalties and persecutions are deemed necessary.

It is sought to drive out the devil with Beelzebub. Prof. Haeckel also

considers it proper to proceed against criminals with the severest

punishments possible, and that capital punishment, in particular, be

stringently applied.[162] By this stand the Professor places himself in

sweet accord with the re-actionists of all shades, who otherwise are

mortally opposed to him. Haeckel is of the opinion that incorrigible

scape-graces must be uprooted like weeds that take from plants light,

air and space. Had Haeckel turned his mind slightly toward social,

instead of engaging it wholly with natural science, he would know that

these criminals could, in most instances, be transformed into useful

members of human society, provided society offered them the requisite

conditions of existence. He would also find that the annihilation of

individual criminals or the rendering of them harmless, prevents as

little the commission of fresh crimes in society, as the removal of

weeds on a field would prevent their returning if the roots and seeds

are not likewise destroyed. Absolutely to prevent the forming of harmful

organisms in Nature is a feat man never will be able to achieve but _to

so improve his own social system, a system produced by himself, that it

may afford favorable conditions of life for all, and furnish to each

equal freedom to unfold, to the end that they no longer need suffer

hunger, or be driven to satisfy their desire for property, or their

ambition at the expense of others--that is possible_. Let the cause of

the crimes be studied, and let that be removed; then will the crimes

themselves be wiped out.[163]

Those who would remove crimes by removing the causes thereof, cannot, as

a matter of course, sympathize with a plan of brutal suppression. They

cannot prevent society from protecting itself after its own fashion

against the criminals, whom it cannot allow a free hand; but we demand

all the more urgently the radical reformation of society, i. e., the

removal of the causes of crime.

The connection between social conditions, on the one hand, and evildoing

and crimes, on the other, has been frequently established by

statisticians and sociologists. One of the misdemeanors nearest at

hand--one that, all Christian charitable tenets to the contrary

notwithstanding, modern society regards as a misdemeanor--is begging,

especially during hard times. On that subject, the statistics of the

Kingdom of Saxony inform us that, in the measure in which the last

industrial crisis increased--a crisis that began in Germany in 1890, and

whose end is not yet in sight--the number of persons also increased who

were punished for begging. In 1889, there were 8,566 persons punished

for this crime in the Kingdom of Saxony; in 1890, there were 8,815; in

1891, there were 10,075; and in 1892 the figures rose to 13,120--quite

an increase. Mass-impoverishment on one side, swelling affluence on the

other--such is the sign-manual of our age. In Austria, in 1873, there

was one pauper to every 724 persons; in 1882, to every 622 persons.

Crimes and misdemeanors show similar tendency. In Austria-Hungary, in

1874, there were 308,605 persons sentenced in the criminal courts; in

1892, their number was 600,000. In the German Empire, in 1882, there

were 329,968 persons sentenced for crimes and misdemeanors under the

laws of the land; that is to say, to every 10,000 inhabitants of twelve

years and over there were 103.2 criminals; in 1892, the number of

criminals was 422,327, or 143.3--an increase of 39 per cent. Among the

persons punished, there were, for crimes and misdemeanors against

property:--

To Every 10,000

Inhabitants,

12 Years of Age

Year. Total. and Over.

1882 169,334 53.0

1891 196,437 55.8

We think these figures speak volumes. They show how the deterioration of

social conditions intensify and promote poverty, want, misdemeanors and

crimes.

The basis of our social state is the capitalist system of production. On

it modern society rests. All social, all political institutions are

results and fruits of that system. It is the ground from which the whole

social and political superstructure, together with its bright and dark

sides, have sprung up. It influences and dominates the thoughts and

feelings and actions of the people who live under it. Capital is the

leading power in the State and in Society: the capitalist is the ruler

of the propertyless, whose labor-power he buys for his use, and at a

price, that, like all other merchandise, is governed by supply and

demand and oscillates now above, then below the cost of reproduction.

But the capitalist does not buy labor-power out of "sweet charity," in

order to do a favor to the workingmen, although he often so pretends. He

buys it for the purpose of obtaining surplus wealth from the labor of

the workingmen, which he then pockets under the name of profit,

interest, house and ground rent. This surplus wealth, squeezed out of

the workingmen, and which in so far as the capitalist does not squander

it in dissipation, crystallizes in his hands into more capital, puts him

in a condition to steadily enlarge his plant, improve the process of

production, and occupy increased labor forces. That, at the same time,

enables him to step up before his weaker competitors, like a mailed

knight before an unarmed pedestrian, and to destroy them. This unequal

struggle between large and small capital spreads amain, and, as the

cheapest labor-power, next to that of children and lads, woman plays

therein a _role_ of increasing importance. The result is the ever

sharper division of a smaller minority of mighty capitalists and a mass

of capital-less male and female lack-alls whose only resource is the

daily sale of their labor-power. The middle class arrives hereby at a

plight that grows ever graver. One field of industry after another,

where small production still predominated, is seized and occupied to

capitalist ends. The competition of capitalists among themselves compels

them to explore ever newer fields of exploitation. Capital goes about

"like a roaring lion, seeking whom it may devour." The smaller and

weaker establishments are destroyed; if their owners fail to save

themselves upon some new field--a feat that becomes ever harder and less

possible--then they sink down into the class of the wage earners, or of

Catilinarians. All efforts to prevent the downfall of handicraft and of

the middle class by means of institutions and laws, borrowed from the

lumber-room of the musty past, prove utterly ineffective. They may

enable one or another to deceive himself on his actual condition; but

soon the illusion vanishes under the heavy weight of facts. The process

of absorption of the small by the large takes its course with all the

power and pitilessness of a law of Nature, and the process is sensible

to the feeling and the sight of all.

In the period between 1875-1882, the number of small industries

decreased in Prussia by 39,655,[164] although the population increased

in this period by about two million heads. The number of workmen

employed in small industries sank, during that time, from 57.6 per

cent., to 54.9 per cent. The industrial statistics for 1895 will furnish

much more drastic figures. The development of large production stands in

close relation to the development of steam machine and steam

horse-power. And what is the picture presented by these? Prussia had:--

1878. 1893.

Stationary steam boilers 32,411 53,024 + 63.6 per cent.

Stationary steam engines 29,895 53,092 + 77.6 per cent.

Movable machines 5,536 15,725 + 184 per cent.

The Kingdom of Saxony had:--

1861. 1891.

Stationary steam engines 1,003 8,075 + 700 per cent.

Horse-power 15,633 160,772 + 922 per cent.

In 1861, a steam engine in Saxony had, on an average, a 15.5

horse-power; in 1891, it had 19. All Germany had in 1878 about three

million horse-power in operation in industry; in 1894, about five

million. Austria had in 1873 in round figures 336,000 horse-power; in

1888, about 2,150,000. Steam power spreads daily, and stronger steam

machines drive out weaker ones--large production drives out small. The

fact is shown emphatically in the industries in which steam has become

the general power, the brewery industry, for instance. In the German

brewery tax department, exclusive of Bavaria, Wuertemburg, Baden and

Alsace-Lorraine, there were:--

Breweries Industrially

Year. in Operation. Operated. Output.

1873 13,561 10,927 19,654,900 hl.

1891-2 8,460 7,571 33,171,100 hl.

------ ------ ----------

5,101 3,356 13,516,200 hl.

Decrease Decrease Increase

= 38 per cent. = 31.1 per cent. = 68.8 per cent.

The breweries in general, this table shows, had decreased during this

period 38 per cent., the industrially operated ones 31.1 per cent.; the

output, however, had increased 68.8 per cent. The giant concerns

increased at the expense of the middle and small ones. The identical

development is going on _in all countries of civilization, in all

industries capitalistically operated_. Let us now take up the brandy

distilleries. In all the eight provinces of Prussia, there were in

operation:--[165]

Consumed in Distillery,

Year. Distilleries. Brandy (Double Quintal).

1831 13,806 1,736,458 5,418,217

1886-87 5,814 2,518,478 24,310,196

------ --------- ----------

7,992 782,020 18,891,979

Decrease Decrease Increase

= 38 per cent. = 31.1 per cent. = 68 per cent.

Similar results are revealed in the coal and the mineral mining

industries of the German Empire. In the former, the number of leading

concerns--623 in number between the years 1871-1875--dropped to 406 in

1889, but the output increased simultaneously from 34,485,400 tons to

67,342,200 tons, and the average number of employees rose from 172,074

to 239,954. In the latter, the average number of leading establishments

between 1871-1875, was 3,034, with an average force of 277,878 hands,

that turned out 51,056,900 tons; in 1889, the number of leading

establishments had _dropped to 1,962, while the average force had risen

to 368,896 hands, and the output to 99,414,100 tons_.[166] We see that

in the coal mine industry the number of concerns decreased during that

period 35 per cent., while the number of employees rose 40 per cent.,

and production as much as 95.2 per cent. Similarly in the mineral mining

industry. Here the number of establishments decreased 35.3 per cent.,

while the number of workingmen employed rose 33 per cent., and

production 94.7 per cent. A smaller but much richer number of employers

now confronted a greatly swollen number of proletarians. Nor does this

technical revolution proceed in industry alone: it is also going on in

the department of transportation and communication. German commerce had

upon the seas:--

Sailing

Year. Vessels. Tonnage. Crews.

1871 4,372 900,361 34,739

1893 2,742 725,182 17,522

----- ------- ------

1,630 175,179 17,217

Decrease. Decrease. Decrease.

Sail navigation, we see, declines perceptibly, but in so far as it

continues to exist, _the tonnage of vessels increases, and the force of

the crews decreases_. In 1871, there came to every one sailing vessel

205.9 tons and 7.9 crew; in 1893, however, the average tonnage per

sailing vessel was 271.7 and only a crew 6.4 strong. A different picture

is offered by the German ocean steamship navigation. Germany had:--

Year. Steamers. Tonnage. Crews.

1871 147 81,994 4,736

1893 986 786,397 24,113

--- ------- ------

Increase 839 704,403 19,377

We see that, not only did the number of steamers rise considerably, but

that their tonnage increased still more; on the other hand, the force of

the crews had relatively decreased. In 1871, steamers had on an average

a 558 tonnage, with a 32.1 crew; in 1893 they had a 797.5 tonnage and

only a 24.5 crew. It is an economic law that the number of workingmen

_decreases_ everywhere with the concentration of industry, while,

relatively to the whole population, wealth concentrates in ever fewer

hands, and the number of employers, rendered unable to hold their own

and driven into bankruptcy by the process of concentration, mounts ever

higher.

In the eight old provinces of Prussia, the population increased 42 per

cent. during 1853-1890. But the incomes in the several grades rose in

the following rates:--[167]

Incomes. Increased

Up to 3,000 marks 42 per cent.

3,000-- 36,000 marks 333 per cent.

36,000-- 60,000 marks 590 per cent.

60,000--120,000 marks 835 per cent.

Over 120,000 marks 942 per cent.

The number of incomes up to 3,000 marks increased exactly with the

population; it would, however, have lagged behind it if, within the

period of 1853-1890, there had not been an extraordinary increase of

national, State, municipal and private officials, the large majority of

whose incomes falls below 3,000 marks. On the other hand, the number of

large incomes has risen beyond all proportion, although, during the

period under consideration, there was not yet any provision in Prussia

making the correct estimate of incomes obligatory. This was introduced

in 1891. The actual increase of incomes was, accordingly, much larger

than the figures indicate. As stated before, the concentration of

wealth, on the one side, is paralleled with mass-proletarianization, on

the other, and also with swelling figures of bankruptcy. During the

period of 1880-1889, the number of bankruptcy cases, adjudicated by law,

averaged, in Germany, 4,885 a year; it rose to 5,908 in 1890; to 7,234

in 1891; and to 7,358 in 1892. These figures do not include the large

number of bankruptcies that did not reach the courts, the assets not

being large enough to cover the costs; neither are included among them

those that were settled out of court between the debtors and their

creditors.

The same picture that is presented by the economic development of

Germany is presented by that of all industrial countries of the world.

All nations of civilization are endeavoring to become industrial States.

They wish to produce, not merely for the satisfaction of their own

domestic wants, but also for exportation. Hence the absolute propriety

of no longer speaking of "national" but of "international" economy. It

is the world's market that now regulates the price of numberless

products of industry and agriculture, and that controls the social

position of nations. The productive domain, that, in the near future,

will dominate the world's market is that of the United States--a quarter

from which is now proceeding the principal impetus toward

revolutionizing the relations of the world's market, and, along

therewith, all bourgeois society. According to the census of 1890, the

capital invested in industry in the United States has risen to 6,524

million dollars, as against 2,790 million in 1880, an increase of 136

per cent. The value of the industrial products rose during that period

from 5,369 million dollars to 9,370 million, or 75 per cent. in round

figures, while the population increased only 25 per cent.[168] The

United States has reached a point of development where it must export a

large mass of products in order to be able to continue producing in

sufficient quantities. Instead of importing articles of industry from

Europe, these will henceforth be exported in large volumes, thereby

upsetting commercial relations everywhere. What pass has been reached

there is indicated by the mammoth struggles between Capital and Labor,

by the distress of the masses that has lasted years, and by the colossal

increase of bankruptcy during the last crisis. In 1879, 1880 and 1881

the sum absorbed in bankruptcies ran up to 82 million dollars in round

figures; in 1890 the amount was 190 million dollars, and in 1891 it rose

to 331 million dollars. An instance will illustrate the gigantic measure

of the concentration of capital in that country. In 1870, there were in

the United States 2,819 woolen mills, in which 96 million dollars were

invested as capital; in 1890 the number of these mills had sunk to

1,312, but the capital invested had risen to 136 million. In 1870, on an

average, $34,000 sufficed to establish a woolen mill; in 1890, not less

than $102,000 was requisite. The increased demands upon capital forces

the building of stock corporations, which, in turn, promote the

concentration still more. Where the powers of a single capitalist do not

suffice, several of them join; they appoint technical overseers, who are

well paid, and they pocket, in the form of dividends, the profits which

the workingmen must raise. The restlessness of industry reaches its

classic form in the stock corporation, which demonstrates how useless

the person of the capitalist has become as a leader of industry.

Seeing that this process of development and concentration is proceeding

equally in all leading countries, the inevitable results of the anarchic

method of production is "over-production," the stoppage of trade, the

crisis.

Accordingly, the crisis is a consequence of the absence of any means

whatever whereby at any time the actual demand for certain goods can be

gauged and controlled. There is no power in bourgeois society able to

regulate production as a whole; the customers are spread over too vast

an area; then also, their purchasing power, upon which depends their

power of consumption, is affected by a number of causes, beyond the

control of the individual producer. Moreover, along with each individual

producer, are a number of others, whose productive powers and actual

yield also are unknown to him. Each strives, with all the means at his

command--cheap prices, advertisements, long credit, drummers, also

secret and crafty detraction of the quality of the goods of his

competitor, the last of which is a measure that flourishes particularly

at critical moments--to drive all other competitors from the field.

Production is wholly left to accident and to the judgment of

individuals. Accident often is more unfavorable than otherwise. Every

capitalist must produce a certain quantity of goods, in order that he

may exist; he is, however, driven to increase his output, partly because

his increase of revenues depends upon that, partly also because upon

that depend his prospects of being able to overcome his competitors, and

keep the field all to himself. For a while, the output is safe; the

circumstance tends to expansion and increased production. But prosperous

times do not tempt one capitalist alone; they tempt them all. Thus

production rises far above demand, and suddenly the market is found

overstocked. Sales stop; prices fall; and production is curtailed. The

curtailment of production in any one branch implies a diminished demand

for workingmen, the lowering of wages and a retrenchment of consumption

in the ranks of labor. A further stoppage of production and business in

other departments is the necessary consequence. Small producers of all

sorts--trademen, saloonkeepers, bakers, butchers, etc.,--whose

customers are chiefly workingmen, lose the profitable sale of their

goods and likewise land in distress.

The way in which such a crisis works appears from a census on the

unemployed which the Social Democratic Party of Hamburg undertook on

February 14, 1894. Of 53,756 workingmen who were interrogated, and of

whom 34,647 were married, with an aggregate family dependence of

138,851, there were 18,422 who, during the last year, had been idle a

total of 191,013 weeks; 5,084 persons had been idle from 1 to 5 weeks;

8,741 from 6 to 10 weeks; 1,446 from 11 to 15 weeks; 984 from 16 to 20

weeks; 2,167 more than 20 weeks. These are workingmen, who wished to

work, but who, in this best of all possible worlds, could find no work.

The sorry plight of these people may be imagined.

Again, one industry furnishes its raw material to another; one depends

upon the other; it follows that all must suffer and pay for the blows

that fall upon any. The circle of participants and sufferers spreads

ever wider. A number of obligations, assumed in the hope of a long

continuance of prosperity, cannot be met, and thus new fuel is added to

the conflagration of the crisis, whose flames rise higher from month to

month. An enormous mass of stored-up goods, tools, machinery, becomes

almost worthless. The goods are got rid of at great sacrifices. Not only

their proprietor is thereby ruined, but also dozens of others who are

thereby likewise forced to give up their goods under cost. During the

crisis itself, the method of production is all along improved with the

view of meeting future competition; but this only prepares the ground

for new and still worse crises. After the crisis has lasted years, after

the surplusage of goods has been gradually done away with through sales

at ruinous prices, through retrenchment of production, and through the

destruction of smaller concerns, society slowly begins to recover again.

Demand rises, and production follows suit--slowly at first and cautious,

but, with the continuance of prosperity, the old vertigo sets in anew.

Everyone is anxious to recover what he lost, and expects to be under

cover before the next crisis breaks in. Nevertheless, seeing that all

capitalists foster the identical thought, and that each one improves his

plant so as to head off the others, the catastrophe is soon brought on

again and with all the more fatal effect. Innumerable establishments

rise and fall like balls at a game, and out of such continuous ups and

downs flows the wretched state of things that is witnessed at all

crises. These crises crowd upon one another in the measure that large

production increases, and the competitive struggle--not between

individuals only, but between whole nations--becomes sharper. The

scampering for customers, on a small scale, and for markets on a large

one, gains in fierceness, and ends finally in great losses. Goods and

implements are heaped mountain high, yet the masses of the people suffer

hunger and want.

The autumn of the year 1890 brought new proof of the correctness of

this outline. After a long series of years of business depression,

during which, however, large capitalist development was steadily

progressing, an improvement in our economic life set in during 1887-8,

stimulated in no slight degree by the extensive changes introduced in

our army and navy systems. The upward movement continued during 1889 and

up into the first quarter of 1890. During this period, a number of new

establishments began to crop up everywhere in several fields of

industry; a large number of others were enlarged and improved to the

highest point of technical perfection, and their capacity greatly

increased. In the same measure that this large capitalist development

progressed, a larger and ever larger number of establishments passed

from the hands of individual capitalists into stock corporations--a

change that ever is more or less connected with an increase of

production. The new issues, that, as a result of these combinations and

due also to the increase of the public debt, were contracted in the

international money market, ran up in 1887 to about 4,000 million marks;

in 1888, to 5,500 million; and in 1889, to even 7,000 million. On the

other hand, the capitalists of all countries were endeavoring to

"regulate" prices and production by means of national and international

agreements. Rings and Trusts sprang up like mushrooms over night. The

majority, often all the capitalists concerned in the more important

branches of production, formed syndicates, by means of which prices were

fixed, and production was to be regulated by the light of accurate

statistical information. Over-production was thus to be prevented. A

marvelous monopolization of industry, such as had never been seen, was

thus achieved in the interest of the capitalists and at the expense of

the workingmen, and of the consumers in general. For a while it seemed

as if capital had come into possession of the means that enabled it to

control the market in all directions, to the injury of the public and to

its own greater glory. But appearances deceived. The laws of capitalist

production proved themselves stronger than the shrewdest representatives

of the system who imagined they held in their hands the power to

regulate it. The crisis set in. One of the largest international

business houses of England fell and involved a number of others in its

fall. All exchanges and markets--of London, Paris, Vienna and Berlin, as

far as St. Petersburg, New York and Calcutta--shook and trembled. It had

again been shown that the profoundest calculations prove deceptive, and

that capitalist society cannot escape its fate.

All this notwithstanding, capitalism proceeds on its course: it can be

no other than it is. By means of the forms that its course dictates, it

throws all the laws of capitalist economics overboard. "Free

competition," the Alpha and Omega of bourgeois society, is to bring the

fittest to the top of the enterprises; but the stock corporation

removes all individuality, and places the crown upon that combination

that has the longest purse and the strongest grip. The syndicates,

Trusts and rings carry the point still further. Whole branches of

industry are monopolized; the individual capitalist becomes but a pliant

link in a chain, held by a capitalist committee. _A handful of

monopolists set themselves up as lords of the world and dictate to it

the price of goods, to the workingmen their wages and conditions of

life._

The whole course of this development brings out how utterly superfluous

the individual capitalist has become, and that production, conducted

upon a national and international scale, is the goal toward which

society steers--with this difference, that, in the end, this organized

production will redound to the benefit, not of a class, but of the

collectivity.

The economic revolution just sketched, and which is driving bourgeois

society with great swiftness to its apogee, becomes more pointed from

year to year. While Europe finds itself pressed more and more in its

foreign markets, and finally on its own territory, by the competition of

the United States, latterly enemies have risen in the East also,

rendering still more critical the plight of Europe, and at the same time

threatening the United States also. This danger proceeds from the

progress of English India toward becoming a great agricultural and

industrial State--a progress that, in the first place, looks to the

meeting of the wants of India's own two hundred million strong

population, and, in the second place, develops into a mortal enemy of

English and German industry in particular. And still another industrial

State is beginning to rise in the East--_Japan_. According to the

"Kreuzzeitung" of February 20, 1895, "during the last ten years, Japan

has imported from Europe the best perfected machinery for setting up

industrial plants, especially in cotton spinning. In 1889, she had only

35,000 spindles; now she has over 380,000. In 1889, Japan imported 31

million pounds of raw cotton; in 1891, she imported 67 million. She is

steadily decreasing her importations of manufactured articles, and

increasing her importations of raw material, which she then retransports

in the shape of manufactures. During the last year Hongkong, a European

colony, bought over two million marks of Japanese cotton goods. The

Japanese are providing their own markets with goods that formerly were

imported from Europe and the United States. They are also exporting to

Oriental markets, that were formerly provided from western sources. They

are exporting matches and soap; they are manufacturing clothing, felt

hats and hosiery; they have glass-blowing establishments, breweries,

tileries, tan-yards and rope-walks."

The further expansion of Japan's industry steadily reduces importations

from Europe and the United States, and simultaneously places it in

condition to turn up in the world's market as a competitor. Should

China also, as a result of the Japanese-Chinese war, be compelled to

open her immense territory to European culture, then, in view of the

great adaptability and marvelous unpretentiousness of the Chinese

workingman, another competitive power will have risen, more dangerous

than any that the world's market has yet had to reckon with. Truly, the

future of bourgeois society is threatened from all sides with grave

dangers, and there is no way to escape them.

Thus _the crisis becomes permanent and international_. It is a result of

all the markets being overstocked with goods. And yet, still more could

be produced; but the large majority of people suffer want in the

necessaries of life because they have no income wherewith to satisfy

their wants by purchase. They lack clothing, underwear, furniture,

homes, food for the body and mind, and means of enjoyment, all of which

they could consume in large quantities. But all that does not exist to

them. Hundreds of thousands of workingmen are even thrown upon the

sidewalk, and rendered wholly unable to consume because their

labor-power has become "_superfluous_" to the capitalists. Is it not

obvious that our social system suffers of serious ailments? How could

there be any "over-production" when there is no lack of capacity to

consume, i. e., of wants that crave satisfaction? Obviously, it is not

production, in and of itself, that breeds these unhallowed conditions

and contradictions: _it is the system under which production is carried

on, and the product is distributed_.

* * * * *

In human society, all its members are bound to one another by a thousand

threads; and these threads are all the more numerous in proportion to a

people's grade of culture. If disturbances set in, they are forthwith

felt by all. Disturbances in production affect distribution and

consumption; and _vice versa_. The feature of capitalist production is

the concentration of property into ever fewer hands and into ever larger

establishments. In distribution, on the contrary, an opposite current is

noticeable. Whoever, due to the destructive effect of competition, is

stricken from the list of independent producers, seeks, in nine cases

out of ten, to squeeze himself as a dealer between the producer and the

consumer, and thus to earn his livelihood.

Hence the striking phenomenon of the increase of the middleman--dealers,

shopkeepers, hucksters, commissioners, brokers, agents, saloonkeepers,

etc. Most of these, among whom women are strongly represented, lead a

life of worries and a needy existence. Many are compelled, in order to

keep their heads above water, to speculate upon the lowest passions of

man and to promote them in all manner of ways. Hence the marvelous swing

of the most repulsive advertisements, particularly in all matters the

object of which is the gratification of sexual pleasures.

It is undeniable, and, viewed from a higher viewpoint, it is also

cheering, that the current for a greater enjoyment of life runs deep in

modern society. Man begins to understand that, in order to be human, a

life worthy of human beings is requisite, and the feeling is expressed

in such form as corresponds with the respective conceptions of the

enjoyment of life. As far as the distribution of its wealth is

concerned, society has become much more _aristocratic_ than at any

previous period. Between the richest and the poorest, the chasm is wider

to-day than ever before. On the other hand, with regard to its ideas and

laws, society has become more _democratic_.[169] Hence the masses strive

after greater equality; and, seeing that in their ignorance they know

not yet the path by which to attain their wishes, they seek equality in

the imitation of the upper classes by furnishing themselves with

whatever pleasures are within their reach. All possible artificial means

are resorted to in order to exploit this tendency; the consequences are

often serious. The gratification of a justified desire thus leads in a

number of cases to wrong paths, often to crime; and society intervenes

in its own way, without thereby improving matters in the least.

The increasing mass of the middlemen draws many evils in its wake.

Although this class toils arduously and works under the load of heavy

cares, _the majority are parasites, they are unproductively active, and

they live upon the labors of others, just the same as the capitalist

class_. Higher prices is the inevitable consequence of this industry.

Food and other goods rise in price in such manner that they often cost

twice or many times as much as the producer received for them.[170] If

it is thought unadvisable or impossible to materially raise the price of

the goods, lest consumption decline, they are artificially deteriorated,

and recourse is had _to adulteration of food, and to false weights and

measures_, in order to make the requisite profits. The chemist Chevalier

reports that he knows, among the several adulterations of food, 32 for

coffee, 30 for wine, 28 for chocolate, 24 for meal, 23 for brandy, 20

for bread, 19 for milk, 10 for butter, 9 for olive oil, 6 for sugar,

etc. The Chamber of Commerce of Wesel reported in 1870 that an extensive

system of swindle was practiced in the shops in the sale of

ready-weighed articles: for 1 pound, 24 or 26 pennyweights were given,

and in that way twice as much was gained as the difference in the price.

Workingmen and small traders who get their goods on credit and who must,

accordingly, submit, even when the fraud is obvious, fare worst of all.

Grave abuses are also perpetrated in bakeries. Swindling and cheating

are inseparable from our modern conditions, and certain government

institutions, such as high indirect taxes, are direct incentives

thereto. The laws against the adulteration of food alter matters but

little. The struggle for existence compels the swindlers to resort to

ever shrewder means, nor is there any thorough and strict inspection.

Leading and influential circles of our ruling classes are even

interested in the system of swindle. Under the pretext that, in order to

discover adulterations a more comprehensive and more expensive

administrative apparatus is required, and that "legitimate business"

would suffer thereby, almost all inspection, worthy of the name, is

lamed. If, however, laws and measures of inspection do actually

intervene, they affect a considerable rise in the price of the

unadulterated products, seeing that the lower price was made possible

only by adulteration.

With the view of avoiding these evils of trade, evils that, as ever and

everywhere, are hardest on the masses, "Consumers' Associations" have

been set up. In Germany, the "Consumers' Association" plan, especially

among the military and civil service employees, reaches such a point

that numerous business houses have been ruined, and many are not far

from the same fate. These Associations demonstrate the superfluousness

of trade in a differently organized society.[171] In that consists their

principal merit. The material advantages are not great for the members;

neither are the facilities that they offer enough to enable the members

to discover any material improvement in their condition. Not

infrequently is their administration poor, and the members must pay for

it. In the hands of capitalists, these Associations even become an

additional means to chain the workingman to the factory, and they are

used as weapons to depress wages. The founding of these "Consumers'

Associations" is, however, a symptom that the evils of trade and at

least the superfluousness of the middlemen have been realized in wide

circles. Society will reach that point of organization at which trade

becomes wholly superfluous; the product will reach the consumer without

the intervention of any middlemen other than those who attend to its

transportation from place to place, and who are in the service of

society. A natural demand, that flows from the collective procurement of

food, _is its collective preparation for the table upon a large scale,

whereby a further and enormous saving would be made of energy, space,

material and all manner of expenditures_.

* * * * *

The economic revolution in industry and transportation has spread to

agriculture also, and in no slight degree. Commercial and industrial

crises are felt in the country as well. Many relatives of families

located in the country are partially or even wholly engaged in

industrial establishments in cities, and this sort of occupation is

becoming more and more common because the large farmers find it

convenient _to convert on their own farms a considerable portion of

their produce_. They thereby save the high cost of transporting the raw

product--potatoes that are used for spirits, beets for sugar, grain for

flour or brandy or beer. Furthermore, they have on their own farms

cheaper and more willing labor than can be got in the city, or in

industrial districts. Factories and rent are considerably cheaper, taxes

and licenses lower, seeing that, to a certain extent, the landed

proprietors are themselves lawgivers and law officers: from their midst

numerous representatives are sent to the Reichstag: not infrequently

they also control the local administration and the police department.

These are ample reasons for the phenomenon of increasing numbers of

funnel-pipes in the country. Agriculture and industry step into ever

closer interrelation with each other--an advantage that accrues mainly

to the large landed estates.

The point of capitalist development reached in Germany also by

agriculture has partially called forth conditions similar to those found

in England and the United States. As with the small and middle class

industries, so likewise with the small and middle class farms, they are

swallowed up by the large. A number of circumstances render the life of

the small and middle class farmer ever harder, and ripen him for

absorption by the large fellow.

No longer do the one-time conditions, as they were still known a few

decades ago, prevail in the country. Modern culture now pervades the

country in the remotest corners. Contrary to its own purpose, militarism

exercises a certain revolutionary influence. The enormous increase of

the standing army weighs, in so far as the blood-tax is concerned,

heaviest of all upon the country districts. The degeneration of

industrial and city life compels the drawing of by far the larger

portion of soldiers from the rural population. When the farmer's son,

the day laborer, or the servant returns after two or three years from

the atmosphere of the city and the barracks, an atmosphere not exactly

impregnated with high moral principles;--when he returns as the carrier

and spreader of venereal diseases, he has also become acquainted with a

mass of new views and wants whose gratification he is not inclined to

discontinue. Accordingly, he makes larger demands upon life, and wants

higher wages; his frugality of old went to pieces in the city.

Transportation, ever more extended and improved, also contributes toward

the increase of wants in the country. Through intercourse with the city,

the rustic becomes acquainted with the world from an entirely new and

more seductive side: he is seized with new ideas: he learns of the wants

of civilization, thitherto unknown to him. All that renders him

discontented with his lot. On top of that, the increasing demands of the

State, the province, the municipality hit both farmer and farmhand, and

make them still more rebellious.

True enough, many farm products have greatly risen in value during this

period, but not in even measure with the taxes and the cost of living.

On the other hand, transmarine competition in food materially

contributes toward reducing prices: this reduces incomes: the same can

be counterbalanced only by improved management: and nine-tenths of the

farmers lack the means thereto. Moreover, the farmer does not get for

his product the price paid by the city: he has to deal with the

middlemen: and these hold him in their clutches. The broker or dealer,

who at given seasons traverses the country and, as a rule, himself sells

to other middlemen, wants to make his profits: the gathering of many

small quantities gives him much more trouble than a large invoice from a

single large holder: the small farmer receives, as a consequence, less

for his goods than the large farmer. Moreover, the quality of the

products from the small farmer is inferior: the primitive methods that

are there generally pursued have that effect: and that again compels the

small farmer to submit to lower prices. Again, the farm owner or tenant

can often not afford to wait until the price of his goods rises. He has

payments to meet--rent, interest, taxes; he has loans to cancel and

debts to settle with the broker and his hands. These liabilities are due

on fixed dates: he must sell however unfavorable the moment. In order to

improve his land, to provide for co-heirs, children, etc., the farmer

has contracted a mortgage: he has no choice of creditor: thus his plight

is rendered all the worse. High interest and stated payments of arrears

give him hard blows. An unfavorable crop, or a false calculation on the

proper crop, for which he expected a high price, carry him to the very

brink of ruin. Often the purchaser of the crop and the mortgagee are one

and the same person. The farmers of whole villages and districts thus

find themselves at the mercy of a few creditors. The farmers of hops,

wine and tobacco in Southern Germany; the truck farmers on the Rhine;

the small farmers in Central Germany--all are in that plight. The

mortgagee sucks them dry; he leaves them, apparent owners of a field,

that, in point of fact, is theirs no longer. The capitalist vampire

often finds it more profitable to farm in this way than, by seizing the

land itself and selling it, or himself doing the farming. Thus many

thousand farmers are carried on the registers as proprietors, who, in

fact, are no longer such. Thus, again, many a large farmer--unskilled in

his trade, or visited by misfortune, or who came into possession under

unfavorable circumstances--also falls a prey to the executioner's axe of

the capitalist. The capitalist becomes lord of the land; with the view

of making double gains he goes into the business of "butchering

estates:" he parcels out the domain because he can thereby get a larger

price than if he sold it in lump: then also he has better prospects of

plying his usurious trade if the proprietors are many and small holders.

It is well known that city houses with many small apartments yield the

largest rent. A number of small holders join and buy a portion of the

parcelled-out estate: the capitalist benefactor is ready at hand to pass

larger tracts over to them on a small cash payment, securing the rest by

mortgage bearing good interest. This is the milk in the cocoanut. If the

small holder has luck and he succeeds, by utmost exertion, to extract a

tolerable sum from the land, or to obtain an exceptionally cheap loan,

then he can save himself; otherwise he fares as shown above.

If a few heads of cattle die on the hands of the farm-owner or tenant, a

serious misfortune has befallen him; if he has a daughter who marries,

her outfit augments his debts, besides his losing a cheap labor-power;

if a son marries, the youngster wants a piece of land or its equivalent

in money. Often this farmer must neglect necessary improvements: if his

cattle and household do not furnish him with sufficient manure--a not

unusual circumstance--then the yield of the farm declines, because its

owner cannot buy fertilizers: often he lacks the means to obtain better

seed. The profitable application of machinery is denied him: a rotation

of crops, in keeping with the chemical composition of his farm, is often

not to be thought of. As little can he turn to profit the advantages

that science and experience offer him in the conduct of his domestic

animals: the want of proper food, the want of proper stabling and

attention, the want of all other means and appliances prevent him.

Innumerable, accordingly, are the causes that bear down upon the small

and middle class farmer, drive him into debt, and his head into the

noose of the capitalist or the large holder.

The large landholders are generally intent upon buying up the small

holdings, and thereby "rounding up" their estates. The large capitalist

magnates have a predilection for investments in land, this being the

safest form of property, one, moreover, that, with an increasing

population, rises in value without effort on the part of the owners.

England furnishes the most striking instance of this particular increase

of value. Although due to international competition in agricultural

products and cattle-raising, the yield of the land decreased during the

last decades, nevertheless, seeing that in Scotland two million acres

were converted into hunting grounds, that in Ireland four million acres

lie almost waste, that in England the area of agriculture declined from

19,153,900 acres in 1831, to 15,651,605 in 1880, a loss of 3,484,385

acres, which have been converted into meadow lands, rent increased

considerably. The aggregate rent from country estates amounted, in

pounds sterling, to:--

Countries. 1857. 1875. 1880. Increase.

England and Wales 41,177,200 50,125,000 52,179,381 11,002,181

Scotland 5,932,000 7,493,000 7,776,919 1,844,919

Ireland 8,747,000 9,293,000 10,543,000 1,796,700

---------- ---------- ---------- ----------

Total 55,856,200 67,911,000 70,499,300 14,643,800

Accordingly, an increase of 26.2 per cent. within 23 years, and that

without any effort on the part of the owners. Although, since 1880, due

to the ever sharper international competition in food, the agricultural

conditions of England and Ireland have hardly improved, the large

English landlords have not yet ventured upon such large demands upon the

population as have the continental, the German large landlords in

particular. England knows no agricultural tariffs; and the demand for a

minimum price, fixed by government, of such nature that they have been

styled "price raisers" and as the large landlords of the East Elbe

region together with their train-bands in the German Reichstag are

insisting on at the cost of the propertyless classes, would raise in

England a storm of indignation.

According to the agricultural statistics gathered in Germany on June 2,

1882, the farms fell into the following categories according to size:--

Percentage of

Area. Farms. Total Farms.

Under 1 hectare 2,323,316 44.03

1 to 5 hectares 1,719,922 32.54

5 to 10 hectares 554,174 10.50

10 to 20 hectares 372,431 7.06

20 to 50 hectares 239,887 4.50

50 to 100 hectares 41,623 0.80

100 to 200 hectares 11,033 0.21

200 to 500 hectares 9,814 0.18

500 to 1,000 hectares 3,629 0.07

1,000 hectares 515 0.01

--------- -----

Total 5,276,344 99.90

According to Koppe, a minimum of 6 hectares are requisite in Northern

Germany for a farmer's family to barely beat itself through; in order

to live in tolerable circumstances, 15 to 20 hectares are requisite. In

the fertile districts of Southern Germany, 3 to 4 hectares are

considered good ground to support a peasant family on. This minimum is

reached in Germany by not four million farms, and only about 6 per cent.

of the farmers have holdings large enough to enable them to get along in

comfort. Not less than 3,222,270 farmers conduct industrial or

commercial pursuits besides agriculture. It is a characteristic feature

of the lands under cultivation that the farms of less than 50

hectares--5,200,000 in all--contained only 3,747,677 hectares of grain

lands, whereas the farms of more than 50 hectares--66,000 in round

figures--contained 9,636,246 hectares. One and a quarter per cent. of

the farms contained 2 1/2 times more grain land than the other 98-3/4 per

cent. put together.

And yet the picture presented by these statistics falls by far short of

the reality. It has not been ascertained among how many owners these

5,276,344 farms are divided. The number of owners is far smaller than

that of the farms themselves: many are the owners of dozens of farms: it

is in the instance of large farms, in particular, that many are held by

one proprietor. A knowledge of the concentration of land is of the

highest socio-political importance, yet on this point the agricultural

statistics of 1882 leave us greatly in the lurch. A few facts are,

nevertheless, ascertained from other sources, and they give an

approximate picture of the reality. The percentages of large landed

property--over 100 hectares--to the aggregate agricultural property was

as follows:--

Provinces. Percentage. Provinces. Percentage.

Pomerania 64.87 Brandenburg 42.60

Posen 61.22 Silesia 42.14

West Prussia 54.41 Saxony 30.89

East Prussia 41.79 Schleswig-Holstein 18.03

According to the memorial of the Prussian Minister of Agriculture,

published in the bulletin of the Prussian Bureau of Statistics, the

number of middle class farms sank, from 354,610 with 35,260,084 acres,

in 1816, to 344,737 with 33,498,433 acres, in 1859. The number of these

farms had, accordingly, decreased within that period by 9,873, and

peasant property had been wiped out to the volume of 1,711,641 acres.

The inquiry extended only to the provinces of Prussia, Posen (from 1823

on), Pomerania, exclusive of Stralsund; Brandenburg, Saxony, Silesia,

and Westphalia.

What disappears as peasant property usually goes into large estates. In

1885, in the province of Pomerania, 62 proprietors held 118 estates; in

1891, however, the same number of proprietors held 203 estates with an

area of 147,139 hectares. Altogether, there were in the province of

Pomerania, in 1891, 1,353 noble and bourgeois landlords, owning 2,258

estates with 1,247,201 hectares.[172] The estates averaged 551 hectares

in size.

Our eastern provinces give this table of landlords for the year 1888:--

Prince of Hohenlohe-Oehringen 39,365 hectares

Prince of Sigmaringen 29,611 "

Prince of Thurn and Taxis 24,482 "

Prince Bismarck 18,600 "

Prince Radziwill 16,398 "

Duke of Milzinski 13,933 "

Representative Kennemann 10,482 "

Duke Serg. v. Czarnecki 9,263 "

v. Hansemann 7,734 "

Etc., etc., etc.

We see that we here have to do with owners of latifundia of first rank;

and a portion of these gentlemen own also large estates in Southern

Germany and Austria.

According to Conrad,[173] there were in the year 1888, in East Prussia,

547 entails, of which 153 were instituted before the beginning of the

nineteenth century. Entailed land is property that an heir can neither

mortgage, divide nor alienate. The owner may go into bankruptcy through

a dissolute life, but the entail and the income that flows therefrom

remain unseizable. These entails, which only the very rich can

institute, are steadily increasing in number since the last decades. The

547 entails in existence in the eastern provinces of Prussia in 1888,

held by 529 persons, 20 of whom were bourgeois, embraced 1,408,860

hectares, or 2,454 hectares on an average. According to the statistical

figures, submitted in the spring of 1894 by the Prussian Minister of

Agriculture to the Agrarian Commission, the entails of Prussia embraced

at that time 1,833,754 hectares with a net income of 22,992,000 marks.

Estimating the holders of entails at 550, each has an unseizable income

of 41,800 marks. Assuming, however, that these entails are concentrated

in one province, it would mean that the whole province of

Schleswig-Holstein, with an area of 1,890,000 hectares, belonged to 550

owners. In 1888 there were in the eastern provinces of Prussia 154

persons--among them 15 ruling Princes (the Kings of Prussia, Saxony,

etc.); 89 Dukes, other Princes and Counts; 40 noblemen and 10

bourgeois--who alone owned 1,830 estates aggregating 1,768,648 hectares

of land. Probably, the property of these persons has in the meantime

increased considerably, seeing that a good portion of the net incomes

from these estates is expended in acquiring new ones. The nobility of

the first and second rank are the principal elements engaged in this

gigantic concentration of landed property; but they are closely followed

by the aristocracy of finance, who, with increasing predilection, invest

their wealth in land, consisting mainly in magnificent woods, stocked

with roe, deer and wild boar, that the owners may gratify their passion

for the hunt. A large number of the baronial manors consist of the

estates of dispossessed peasants, who were driven from their homes and

reduced to day laborers. According to Neumann, in the provinces of East

and West Prussia alone, there were from twelve to thirteen thousand

small holdings appropriated in that way between 1825 to 1859. This

process of dispossessing, proletarianizing the country population by the

capitalist landlords, has the laying waste of the land as a natural

consequence. The population emigrates, or moves to the cities and

industrial centers. Woods and meadows gain upon cultivated lands, the

remaining territories are operated with machinery, that render human

labor superfluous, or that need such only for short periods during the

plowing and sowing seasons, or when the crops are gathered. The rapidly

increasing number of movable steam engines, already mentioned, consists

mainly of engines employed in the cultivation of the land. The decrease

of the rural population, resulting upon these and other causes of

secondary nature, is sharply expressed in the statistics on population.

Within the eight old provinces of Prussia, the proportion between the

rural and the city population revealed, between 1867 and 1890, the

following progression:--

Year. City Population. Country Population.

1867 7,452,000 16,568,000

1890 11,783,000 18,173,000

---------- ----------

Increase 4,331,000 1,605,000

= 58 per cent. = 9.7 per cent.

The rapidity is obvious with which the city is surpassing the country

population. But the situation is still more unfavorable to the country

if the fact is considered that 148 communities, with from 5,000 to

40,000 inhabitants, and aggregating a population of 1,281,000 strong,

are included in the rural but really belong to the industrial districts.

They are essentially proletarian villages, located near large cities.

Furthermore, 647 communities, with from 2,000 to 5,000 inhabitants, and

aggregating a population of 1,884,000, are likewise included in the

rural, while, to a perceptible degree, they belong to the industrial

districts.

Similar conditions exist in Saxony and Southern Germany. In Baden and

Wurtemberg also the population of many districts is on the decline. The

small farmer can no longer hold his head above water; to thousands upon

thousands of them the fate of a factory hand is inevitable; they enter

the field of industry; and, with the help of their families, they

cultivate during leisure hours the plot of land that may still be

theirs. At the same time the large landlord's hunger for land knows no

bounds; his appetite increases the more peasant lands he devours.

As in Germany so are things developing in neighboring Austria, where

large landed property has long ruled almost unchecked. The difference

there is that the Catholic Church shares the land with the nobility and

the bourgeoisie. The process of smoking-out the farmer is in full swing

in Austria. All manner of efforts are put forth in order to push the

peasants and mountaineers of Tyrol, Salzburg, Steiermark, Upper and

Lower Austria, etc., off their inherited patrimony and to drive them to

relinquish their property. The spectacle, once presented to the world by

England and Scotland, is now on the boards of the most beautiful and

charming regions of Austria. Enormous tracts of land are bought in lump

by rich men, and what cannot be bought outright is leased. Access to the

valleys, manors, hamlets and even houses is thus barred by these new

masters, and stubborn owners of separate small holdings are driven by

all manner of chicaneries to dispose of their property at any price to

these wealthy owners of the woodlands. Old farmlands, on which numerous

generations have been supported for thousands of years, are being

transformed into wilderness, in which the roe and the deer house, while

the mountains, that the noble or bourgeois capitalist calls his own,

become the abode of large herds of chamois. Whole communities are

pauperized, the turning of their cattle upon the Alpine pastures being

made impossible to them, or their right to do so being even disputed.

And who is it that thus raises his hand against the peasant's property

and independence? Princes, noblemen and rich bourgeois. Side by side

with Rothschild and Baron Mayer-Melnhof are found the Dukes of Koburg

and Meiningen, the Princes of Hohenlohe, the Prince of Lichtenstein, the

Duke of Braganza, Prince Rosenberg, Prince Pless, the Counts of

Schoenfeld, Festetics, Schafgotsca, Trautmannsdorff, the hunting

association of the Count of Karolysche, the hunting association of Baron

Gustaedtsche, the noble hunting association of Bluehnbacher, etc.

Large landed property is everywhere on the increase in Austria. The

number of large landlords rose 9.5 per cent. from 1873 to 1891, and that

means a considerable decrease of small holders: land cannot be

increased.

In Lower Austria, of a total area embracing 3,544,596 yokes, 521,603

were taken up by large estates (247 owners), and 94,882 yokes by the

Church. Nine families alone owned, in the middle of the eighties,

157,000 yokes, among these owners was the Count of Hoyos, with 54,000

yokes. The area of Moravia is 2,222,190 hectares. Of these, the Church

held 78,496, 3.53 per cent.; 145 private persons held 525,632, and one

of these alone held 107,247 hectares. Of Austrian Silesia's area of

514,085 hectares, the Church owned 50,845, or 9.87 per cent.; 36

landlords owned 134,226, or 26.07 per cent. The area of Bohemia is

5,196,700 hectares: of these the clergy owned 103,459 hectares; 362

private persons owned 1,448,638. This number is distributed among Prince

Colloredo-Mansfeld with 58,239 hectares; Prince Fuerstenberg with

39,814; Imperial Duke Waldstein with 37,989; Prince Lichtenstein with

37,937; the Count of Czerin with 32,277; the Count of Clam-Gallas with

31,691; Emperor Franz Joseph with 28,800; the Count von Harrach with

28,047; Prince von Lobkowitz with 27,684; Imperial Count Kinsky with

26,265; the Count of Buquoy with 25,645; the Prince of Thurn and Taxis

with 24,777; Prince Schwarzenberg with 24,037; Prince

Metternich-Winneburg with 20,002; Prince Auersperg with 19,960; Prince

Windischgraetz with 19,920 hectares, etc.[174]

The absorption by the large landlords of the small holdings in land

frequently proceeds in "alarming manner." For instance, in the judicial

district of Aflenz, community of St. Ilgen, an Alpine hill of over 5,000

yokes, with pasture ground for 300 head of cattle, and a contiguous

peasant estate of 700 yokes, was all converted into a hunting ground.

The same thing happened with Hoellaep, located in the community of

Seewiesen, which had pasture land for 200 head of cattle. In the same

judicial district of Aflenz, 47 other pieces of land, holding 840 head

of cattle, were gradually absorbed and turned into hunting grounds.

Similar doings are reported from all parts of the Alps. In Steiermark, a

number of peasants find it more profitable to sell the hay to the lordly

hunters as _feed for the game in winter_, than give it to their own

cattle. In the neighborhood of Muerzzuschlag, some peasants no longer

keep cattle, but sell all the feed for the support of the game.

In the judicial district of Schwarz, 7, and in the judicial district of

Zell, 16 Alpine hills, formerly used for pasture, were "cashiered" by

the new landlords and converted into hunting grounds. The whole region

of the Karwendel mountain has been closed to cattle. It is generally the

high nobility of Austria and Germany, together with rich bourgeois

upstarts, who bought up Alpine stretches of land of 70,000 yokes and

more at a clip and had them arranged for hunting parks. Whole villages,

hundreds upon hundreds of holdings are thus wiped out of existence; the

inhabitants are crowded off; and in the place of human beings, together

with cattle meet for their sustenance, roes, deer and chamois put in

their appearance. Oddest of all, more than one of the men, who thus lay

whole provinces waste, is seen rising in the parliaments and declaiming

on the "distress of landed property," and abuses his power to secure the

protection of Government in the shape of duties on corn, wood and meat,

and premiums on brandy and sugar,--all at the expense of the

propertyless masses.

According to the census of the eighties, there were 8,547,285 farms in

France; 2,993,450 farm owners had an average annual income of 300

francs, the aggregate income of these being 22.5 per cent. of the total

income from farms; 1,095,850 farm owners had an average annual income of

1,730 francs, the aggregate income of these being 47 per cent. of the

total income from farms; 65,525 large landlords, owning 109,285 farms,

drew 25.4 per cent. of the total agricultural revenues:--_their

possessions embraced more than one-half of the agricultural lands of

France_.

Large agricultural property is becoming the standard in all countries of

civilization, and, in virtue of its political influence, it sways

legislation without regard to the welfare of the commonwealth.

Nevertheless, the tenure of agricultural land and its cultivation is of

high importance to social development. Upon land and its productivity

depends first of all the population and its subsistence. Land can not be

multiplied at will, hence the question is of all the greater magnitude

to everyone how the land is cultivated and exploited. Germany, whose

population increases yearly by from 5,600,000 heads, needs a large

supply of breadstuffs and meat, if the prices of the principal

necessaries of life shall remain within the reach of the people.

At this point an important antagonism arises between the industrial and

the agricultural population. The industrial population, being

independent of agriculture, has a vital interest in cheap food: the

degree in which they are to thrive both as men and as workers depends

upon that. Every rise in the price of food leads, either to further

adulterations, or to a decline of exports, and thereby of wages as a

consequence of increased difficulties of competition. The question is

otherwise with the cultivator of the soil. As in the instance of the

industrial producer, the farmer is bent upon making the largest gains

possible out of his trade, whatever line that may be in. If the

importation of corn and meat reduces the high prices for these articles

and thereby lowers his profits, then he gives up raising corn and

devotes his soil to some other product that may bring larger returns: he

cultivates sugar-beet for the production of sugar, potatoes and grain

for distilleries, instead of wheat and rye for bread. He devotes the

most fertile tracts to tobacco instead of vegetables. In the same way,

thousands of hectares are used as horse pastures because horses for

soldiers and other purposes of war fetch good prices. On the other hand,

extensive forests, that can be made fertile, are kept at present for the

enjoyment of the hunting lords, and this often happens in neighborhoods

where the dismantling of a few hectares of woodland and their conversion

to agricultural purposes could be undertaken without thereby injuriously

affecting the humidity of the neighborhood.

Upon this particular point, forestry to-day denies the influence of

woodlands upon moisture. Woods should be allowed in large masses only at

such places where the nature of the soil permits no other form of

cultivation, or where the purpose is to furnish mountain regions with a

profitable vegetation, or with a check to the rapid running down of

water in order to prevent freshets and the washing away of the land.

From this point of view, thousands of square kilometers of fertile land

could be reclaimed in Germany for agriculture. But such an alteration

runs counter as well to the interests of the hierarchy of

office-holders--foresters--as to the private and hunting interests of

the large landlords, who are not inclined to forfeit their hunting

grounds and pleasures of the chase.

To what extent the process of rendering "hands" superfluous is

progressing in agriculture and in the industries therewith connected has

been shown in the palpable depopulation of the rural districts of

Germany. It may, furthermore, be specified that in the period between

1885 and 1890, the decrease of the rural population in 74 districts east

of the Elbe was above 2 per cent.; in 44 of these 74 districts it was

even above 3 per cent. In western Prussia, a decrease was established of

over 2 per cent. in 16 districts, in two of which the decrease exceeded

3 per cent. Especially high was the percentage of decrease in those

neighborhoods where large landlords figure as special dispensations of

Providence. In Wurtemberg, during the period between 1839 and 1885, the

population of 22 peasant districts declined from 29,907 heads to

19,213,--not less than 35.7 per cent. In East and West Prignitz, the

rural population declined during the period of 1868-1885 from 100,000

heads to 85,000,--15 per cent.

The decrease of the rural working population is marked also in England

where, as well known, latifundia property reigns supreme. The

progression in the decrease of agricultural workers was there as

follows:--

Sexes. 1861. 1871. Decrease.

Males 1,833,652 1,328,151 505,501

Females 376,797 186,450 193,127

--------- --------- -------

Total 2,210,449 1,514,601 698,628

Since then the decrease has proceeded further. According to Dr. B. J.

Brock, in the year 1885 there was the following yield per acre in

bushels:--

Countries. Wheat. Barley.

Great Britain 35.2 37.8

Germany 18.7 23.6

France 16.0 19.5

Austria 15.5 16.8

Hungary 11.7 16.0

The difference in productivity between Great Britain and the other

countries is, we see, considerable, and it is attained through a more

extensive operation of the soil. In Hungary also the number of persons

engaged in agriculture has decreased considerably:--

1870 4,417,514

1880 3,669,177

a decrease of 748,457, or more than 17 per cent. in ten years. The

agricultural lands passed into the hands of large magnates and

capitalists, who employed machines instead of human workers, and thus

rendered the latter "superfluous." These phenomena manifest themselves

everywhere in agriculture,--just as in large industrial production. The

productivity of labor increases, and in the same measure a portion of

the working class is promoted to the sidewalk.

As a matter of course, this process has its evil consequences for woman

also. Her prospects of being a proprietor and housewife decline, and the

prospects increase of her becoming a servant, a cheap hand for the large

landlord. As a sexual being she is more exposed even than in the city to

the illicit wishes and cravings of the master or his lieutenants. More

so than in industry, on the land proprietary rights in the labor-power

frequently expand to proprietary rights over the whole person. Thus, in

the very midst of "Christian" Europe a quasi Turkish harem system has

developed. In the country, woman is isolated to a higher degree than in

the city. The magistrate or a close friend of his is her employer:

newspapers and a public opinion, to which she otherwise might look for

protection, there are none: furthermore, male labor itself is generally

in a disgraceful state of dependence. But "the heavens are away up, and

the Tsar is away off."

The census of occupation of 1882 established that, out of 5,273,344

farms, only 391,746, or 7 1/2 per cent., employ machinery. Out of the

24,999 large farms, however, containing over 100 hectares of land,

machinery was in use on 20,558, or 82 1/4 per cent. Naturally, it is the

larger farms only that can utilize machinery. The application of

machinery on a large surface, all of one product, engages labor only a

comparatively short time, the number of male and female hands,

absolutely needed on the place and for tending the cattle, is reduced,

and after the field work is done, the day laborers are discharged. Thus

with us, just as in England and in a still higher degree in the United

States, a rural proletariat of grave aspect springs up. If, in view of

the shortness of the season, these workingmen demand correspondingly

high wages when they are needed, their impudence is denounced; if, upon

their discharge, they roam about in hunger and idleness, they are called

vagabonds, are abused, and not infrequently dogs are set upon them to

chase them from the yards as "tramps," unwilling to work, and they are

handed over to the constabulary for the workhouse. A pretty social

"order."

Capitalist exploitation of agriculture leads in all directions to

capitalist conditions. One set of our farmers, for instance, has for

years made enormous profits out of beet-root and the production of sugar

therewith connected. Our system of taxation favored the exportation of

sugar, and it was so framed that the tax on beets yielded but an

infinitesimal revenue to the treasury of the Empire, the premium on the

exportation of sugar being large enough to almost swallow the tax.

The rebate allowed the sugar manufacturers per double quintal was

actually higher than the tax paid by them on beets; and this premium

enabled them to sell large quantities of sugar at the expense of the

domestic tax-payers, and to extend ever more the cultivation of the

sugar-beet. The profit that accrued from this system of taxation to

about 400 sugar factories was estimated at over 30 million marks for

1889-1890: on an average 78,000 marks per factory. Several hundreds of

thousands of hectares of land, previously devoted to raising grain, were

turned into beet-root fields; factories upon factories were started, and

are still being started; the inevitable consequence is an eventual

crash. The large returns yielded by the beet-root cultivation affected

favorably the price of land. It rose. The result was the buying up of

the small farms, whose owners, seduced by the high prices, allowed

themselves to be inveigled into selling. While the land was thus being

used for industrial speculation, the raising of potatoes and grain was

being confined to narrower fields, hence the increasing need of

importation of food from abroad. The demand exceeds the supply.

Thereupon, the large supply of foreign farm products and their cheaper

transportation from Russia, the Danubian Principalities, North and South

America, India, etc., finally leads to prices on which the domestic

farmers--weighed down with mortgages and taxes, and hampered by the

smallness of their farms, and their often faultily organized and

deficiently conducted farming--can no longer exist. High duties are then

placed upon importations; but these duties accrue only to the large

farmer; the small fellow profits little by them, or none at all; and

they become heavy burdens to the non-agricultural population. The

advantage of the few becomes the injury of the many; small farming

retrogresses; for it there is no balm in Gilead. That the condition of

the small peasants in the tariff areas of Germany has been steadily

deteriorating, will be generally admitted. The advantages to the large

farmer from high duties, prohibitions of importations and measures of

exclusion enable him all the more easily to buy out the small holder.

The large number of those who do not produce in meat and bread what they

consume themselves--and a glance at the statistics of occupation and

division of the soil shows that these are by far the larger majority of

the farmers--even suffers a direct injury from the increased prices

resulting upon higher tariffs and indirect taxes. An unfavorable crop,

that lowers still more the returns from the farm, not only aggravates

the pressure, but also increases the number of the agriculturists who

are compelled to become purchasers of farm products themselves. Tariffs

and indirect taxes can not improve the economic condition of the

majority of the farmers: he who has little or nothing to sell, what, to

him, does the tariff boot, be it never so high! The incumbrance of the

small farmer and his final ruin are thereby promoted rather than

checked.

For Baden--overwhelmingly a State of small farms--the increase of

mortgage indebtedness during the period of 1884-1894 is estimated at 140

to 150 million marks. The mortgage indebtedness of the Bern peasants

aggregated in round figures 200 million francs in 1860; in 1890 it

aggregated 500 million francs. According to a report of the Bohemian

representative Gustave Eim, made to his constituents in 1893, the

indebtedness that weighed upon the farms of Bohemia stood as follows:--

1879 2,716,641,754 guilders

1889 3,105,587,363 guilders

We see that inside of that period the burden of indebtedness increased

14.13 per cent.--that of small holdings 13.29 per cent., while that of

the large holdings increased only 3.77 per cent. The bulk of the

increased indebtedness fell to the share of middle class property.

How the cultivator of the soil operates his farm is--under the aegis of

St. Private Property--his own business. His private interest decides.

What cares he about the commonwealth and its well-being? He has to look

out for himself: so, then, stand aside! Does not the industrialist

proceed on that plan? He produces obscene pictures, turns out immoral

books, sets up factories for adulterating food. These and many other

occupations are harmful to society: they undermine morality and incite

corruption. What does that matter! It brings in money, even more money

than moral pictures, scientific books, and honest dealing in

unadulterated food. The industrialist, greedy after profits, needs to

concern himself only about escaping the too sharp eye of the police; he

can quietly pursue his shameful trade, assured that the money he will

thereby rake in will earn for him the envy and esteem of society.

The Mammon character of our age is best typified by the Exchange and its

doings. Land and industrial products; means of transportation;

meteorologic and political conditions; scarcity and abundance;

mass-misery and accidents; public debts, inventions and discoveries; the

health, sickness and death of influential persons; war and rumors of

war, often started for the express purpose;--all this and much more is

made objects of speculation, for exploitation and mutual cheating. The

matadors of capital attain decided influence upon society, and, favored

by the powerful means at their disposal and their connections, they

amass enormous fortunes. Cabinet ministers and whole Governments become

puppets in their hands, compelled to act according as matadors of the

Exchange pull the wires behind the scenes. Not the State has the

Exchange, but the Exchange has the State in its power. Will he, nill he,

a Minister is often forced to water the upas tree, which he might prefer

to tear up by the roots, but that he now must aid in growing.

All these facts, that, seeing the evils gain by the day in magnitude,

daily force themselves with increasing importunity upon the

consideration of everyone, demand speedy and radical help. But modern

society stands bewildered before all these phenomena, just as certain

animals are said to stand before a mountain;[175] it turns like a horse

in the treadmill, constantly in a circle,--lost, helpless, the picture

of distress and stupidity. Those who would bring help are yet too weak;

those who should bring help still lack the necessary understanding;

those who could bring help will not, they rely upon force; at best, they

think with Madame Pompadour "_apres nous le deluge_" (after us the

deluge). But how if the deluge were to come before their departure from

life?

The flood rises and is washing out the foundations upon which our State

and Social structure rests. All feel that the ground shakes, and that

only the strongest props can now stead. But these demand great

sacrifices on the part of the ruling classes. There is the rub. Every

proposition injurious to the material interests of the ruling classes,

and that threatens their privileged position, is bitterly opposed and

branded as a scheme looking to the overthrow of the modern political and

social order. Neither is the sick world to be cured without any danger

to the privileges and immunities of the ruling classes, nor without

their final abolition by the abolition of the classes themselves.

"The struggle for the emancipation of the working class is no struggle

for privileges, but a struggle for equal rights and equal duties; it is

a struggle for the abolition of all privileges"--thus runs the programme

of the Socialist Movement. It follows that half-measures and small

concessions are fruitless.

Until now, the ruling classes regard their privileged position as quite

natural and normal, as to the justice of which no doubt may be

entertained. It is a matter of course, therefore, that they should

object and resolutely oppose every attempt to shake their prerogatives.

Even propositions and laws, that affect neither the fundamental

principles of the existing social order nor the privileged position of

the ruling classes, throw them into great commotion the moment their

purses are or might be touched. Mountains of paper are filed in the

parliaments full of speeches and printed matter, until the heaving

mountains bring forth a ridiculous mouse. The simplest and most obvious

questions regarding the protection of Labor are met by them with such a

resistance as though the existence of society hinged on such

concessions. After endless struggles a few concessions are finally wrung

from them, and then they act as if they had sacrificed a large part of

their fortunes. The same stubborn resistance do they display if the

point is the formal recognition of the equality of the oppressed

classes, to allow these, for instance, to have an equal voice with them

in wage and other labor agreements.

This resistance to the simplest matters and the most obvious demands

confirms the old principle founded in experience, that no ruling class

can be convinced by _reasoning_, until the force of circumstances drives

them to sense and to submission. This force of circumstances lies in the

development of society, and in the increasing intelligence awakened by

this very development among the oppressed. The class-antagonism--the

sketch of our social conditions has pointed them out--grow more

pronounced, visible and sensible. Along therewith increases the

understanding of the untenableness of the existing order among the

oppressed and exploited classes; their indignation mounts higher, and,

as a result thereof, also the imperious demand for a change and for

improved conditions. By penetrating ever wider circles, such

understanding of the situation finally conquers the vast majority of

society, most directly interested in the change. In the same measure,

however, as the popular understanding increases regarding the

untenableness of the existing order and the necessity of its radical

change, the power of resistance decreases on the part of the ruling

classes, whose power rests upon ignorance and lack of intelligence on

the part of the oppressed and exploited. This cross effect is evident;

hence, everything that promotes it must be welcome. The progress made by

large capitalization, on one side, is amply compensated, on the other,

by the increasing perception by the proletariat of the contradiction in

which the social order stands with the well-being of the enormous

majority. The dissolution and abolition of the social antagonisms may

cost extraordinary pains, sacrifices and efforts, it may depend upon

factors that lie beyond the influence of the individual, or even of a

class. Nevertheless, the solution is reached the moment these

antagonisms have reached their acme,--a point towards which they are

rushing.

The measures to be adopted at the various phases of development depend

upon the then conditions. It is impossible to foretell what measures may

become necessary under given circumstances. No Government, no Minister,

be he ever so powerful, can foresee what circumstances may require in

the next few years. All the less is it possible to foretell measures,

that will be influenced by circumstance, which elude all accurate

calculation. The question of "measures" is a question of tactics in

battle. These depend upon the enemy and upon the means at his disposal,

and at mine. A measure that would be excellent to-day, may be harmful

to-morrow, the circumstances that yesterday justified its application

having changed to-day. With the goal in view, the means to attain it by

depend upon time and tide; imperative is but the seizing of the most

effective and thorough going ones that time and tide may allow. In

forecasting the future, hypotheses alone are available: things must be

supposed to exist that have not yet set in.

_Accordingly, we suppose the arrival of a day when all the evils

described will have reached such maturity that they will have become

oppressingly sensible to the feeling as to the sight of the vast

majority, to the extent of being no longer bearable; whereupon a general

irresistible desire for a radical change will seize society, and then

the quickest will be regarded the most effective remedy._

All social evils, without exception, have their source in that social

order of things, which, as has been shown, rests upon capitalism, upon

the capitalist system of production. Under this system, the capitalist

class is the possessor of all instruments of labor--land, mines,

quarries, raw material, tools, machines, means of transportation and

communication--and it exploits and oppresses the vast majority of the

people. The result of such abuses is an increased precariousness of

livelihood, increased misery, oppression and degradation of the

exploited classes. It is, consequently, necessary to convert this

capitalist property into social property by means of a general

expropriation. _Production for sale must be converted into socialist

production, conducted for and by Society. Production on a large scale,

and the increasing fertility of social labor,--until now a source of

misery and of oppression for the exploited classes--must be turned into

a source of highest well-being and of full and harmonious culture._

FOOTNOTES:

[160] Let also one American instance be cited. It occurred on April 1,

1894, in Dolgeville, N. Y., where an employe of the "profit-sharing"

concern of Alfred Dolge--at whose annual dinners Professor, now

President George Gunton was regularly a star guest, and orator to the

"dined" workingmen on the beauties of "profit-sharing,"--one of the

workingmen, driven by the pinching poverty and incertitude inflicted

upon him by the "profit-sharing" practice, killed his wife, four

children and himself, and left a letter describing his plight. (See "The

People," April 8, 1894)--THE TRANSLATOR.

[161] As early as the days of Plato were the consequences of such

conditions understood. He writes: "A nation in which classes exist, is

not one, but two: one class is made up of the poor, the other of the

rich, both living together, yet on the watch against each other.... In

the end, the ruling class is unable to conduct a war, because it would

then have to avail itself of the masses, whom, armed, it fears more than

the enemy himself"; Plato, "The Republic." Aristotle says: "Widespread

poverty is an evil, inasmuch as it is hardly possible to prevent such

people from becoming inciters of sedition"; Aristotle, "Politics."

[162] "Natuerliche Schoepfungsgeschichte."

[163] Similarly Plato in "The Republic": "Crimes have their roots in

want of culture, in bad education and bad social institutions."

Evidently, Plato understood the nature of society better than one of his

learned successors twenty-three hundred years later,--not a cheering

contemplation.

[164] In the sense of German industrial statistics, every employer is

placed under the head of "small producer" who employs less than five

persons.

[165] Clemens Heiss: "Die grossen Einkommen in Deutschland."

[166] Clemens Heiss, _ubi supra._

[167] Clemens Heiss: "Die grossen Einkommen in Deutschland."

[168] According to the census of 1900, the capital invested in industry

was 9,831 million dollars,--an increase over 1890 of 3,307 million; and

the value of the industrial products was 13,010 million dollars,--an

increase over 1890 of 3,640 millions.--THE TRANSLATOR.

[169] Professor Adolf Wagner expresses the same thought in his first

revised edition of Raus' "Lehrbuch der politischen Oekonomie." He says,

p. 361: "The social question is the consciousness gained by the people

of the contradiction between the economic development and the social

principle of freedom and equality, that hovers over their minds as the

ideal, and is realized in political life."

[170] Dr. E. Sax says in his work "Die Hausindustrie in Thueringen,"

among other things, that in 1869 the production of 244 1/4 million slate

pencils had given from 122,000 to 200,000 gilders in wages to the labor,

but the final price paid by the consumer rose to 1,200,000 gilders; it

was, accordingly, at least six times as much as the producer received.

In the summer of 1888, there were 5 marks paid at first hand for 5

hundredweights of shellfish; the retailer paid the wholesale dealer 15

marks; and the public paid 125 marks. Moreover, large quantities of

foodstuffs are destroyed because the prices will not pay for

transportation. For instance, in years of great herring draughts, whole

boatloads are turned to manure, while inland there are hundreds of

thousands of people who can buy no herrings. It was likewise in 1892

with the large potato crops in California. And yet sense is claimed for

such a state of things.

[171] The industrial census of June 5, 1882, gives Germany 386,157 large

and 154,474 small stores, a total of 531,631. In the large shops, there

were 705,906 persons employed.

[172] Dr. Rud. Meyer, "Das Sinken der Grundrente."

[173] "Die Fideikommisse in den westlichen Provinzen Pruessens."

[174] For further details see, "Das soziale Elend und die besitzenden

Klassen in Oesterreich," T. W. Teisen.

[175] A German idiom, expressive of dumb bewilderment, uses the simile:

"Like oxen before a mountain."--THE TRANSLATOR.

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