CHAPTER 2

THE "GREENBACK" PERIOD, 1862-1879

The few national trade unions which were formed at the close of the

fifties did not constitute by themselves a labor movement. It needed the

industrial prosperity caused by the price inflation of the Civil War

time to bring forth again a mass movement of labor.

We shall say little of labor's attitude towards the question of war and

peace before the War had started. Like many other citizens of the North

and the Border States the handful of organized workers favored a

compromise. They held a labor convention in Philadelphia, in which a

great labor leader of the sixties, William H. Sylvis, President of the

International Molders' Union, took a prominent part and pronounced in

favor of the compromise solution advanced by Congressman Crittenden of

Kentucky. But no sooner had Fort Sumter been fired upon by the

secessionists than labor rallied to the support of the Federal Union.

Entire local unions enlisted at the call of President Lincoln, and

Sylvis himself assisted in recruiting a company composed of molders.

The first effect of the War was a paralysis of business and an increase

of unemployment. The existing labor organizations nearly all went to the

wall. The period of industrial stagnation, however, lasted only until

the middle of 1862.

The legal tender acts of 1862 and 1863 authorized the issue of paper

currency of "greenbacks" to the amount of $1,050,000,000, and

immediately prices began to soar. For the next sixteen years, namely

until 1879, when the government resumed the redemption of greenbacks in

gold, prices of commodities and labor expressed in terms of paper money

showed varying degrees of inflation; hence the term "greenback" period.

During the War the advance in prices was due in part to the

extraordinary demand by the government for the supply of the army and,

of course, to speculation.

In July 1863, retail prices were 43 percent above those of 1860 and

wages only 12 percent above; in July 1864, retail prices rose to 70

percent and wages to 30 percent above 1860; and in July 1865, prices

rose to 76 percent and wages only to 50 percent above the level of 1860.

The unequal pace of the price movement drove labor to organize along

trade-union lines.

The order observed in the thirties was again followed out. First came a

flock of local trade unions; these soon combined in city centrals--or as

they came to be called, trades' assemblies--paralleling the trades'

union of the thirties; and lastly, came an attempt to federate the

several trades' assemblies into an International Industrial Assembly of

North America. Local trade unions were organized literally in every

trade beginning in the second half of 1862. The first trades' assembly

was formed in Rochester, New York, in March 1863; and before long there

was one in every town of importance. The International Industrial

Assembly was attempted in 1864, but failed to live up to the

expectations: The time had passed for a national federation of city

centrals. As in the thirties the spread of unionism over the breadth of

the land called out as a counterpart a widespread movement of employers'

associations. The latter differed, however, from their predecessors in

the thirties in that they made little use of the courts in their fight

against the unions.

The growth of the national trade unions was a true index of the

condition of business. Four were organized in 1864 as compared to two

organized in 1863, none in 1862, and one in 1861. During 1865, which

marked the height of the intense business activity, six more national

unions were organized. In 1866 industry entered upon a period of

depression, which reached its lowest depth in 1867 and continued until

1869. Accordingly, not a single national union was organized in 1866 and

only one in 1867. In 1868 two new national labor unions were organized.

In 1869 two more unions were formed--a total of seven for the four

depressed years, compared with ten in the preceding two prosperous

years. In the summer of 1870 business became good and remained good for

approximately three years. Nine new national unions appeared in these

three years. These same years are marked also by a growth of the unions

previously organized. For instance, the machinists and blacksmiths, with

only 1500 members in 1870, had 18,000 in 1873. Other unions showed

similar gains.

An estimate of the total trade union membership at any one time (in view

of the total lack of reliable statistics) would be extremely hazardous.

The New York _Herald_ estimated it in August 1869, to be about 170,000.

A labor leader claimed at the same time that the total was as high as

600,000. Probably 300,000 would be a conservative estimate for the time

immediately preceding the panic of 1873.

Although the strength of labor was really the strength of the national

trade unions, especially during the depression of the later sixties, far

greater attention was attracted outside as well as inside the labor

movement by the National Labor Union, a loosely built federation of

national trade unions, city trades' assemblies, local trade unions, and

reform organizations of various descriptions, from philosophical

anarchists to socialists and woman suffragists. The National Labor Union

did not excel in practical activity, but it formed an accurate mirror of

the aspirations and ideals of the American mechanics of the time of the

Civil War and after. During its six years' existence it ran the gamut of

all important issues which agitated the labor movement of the time.

The National Labor Union came together in its first convention in 1866.

The most pressing problem of the day was unemployment due to the return

of the demobilized soldiers and the shutting down of war industries. The

convention centered on the demand to reduce the working day to eight

hours. But eight hours had by that time come to signify more than a

means to increase employment. The eight-hour movement drew its

inspiration from an economic theory advanced by a self-taught Boston

machinist, Ira Steward. And so naturally did this theory flow from the

usual premises in the thinking of the American workman that once

formulated by Steward it may be said to have become an official theory

of the labor movement.

Steward's doctrine is well expressed by a couplet which was very popular

with the eight-hour speakers of that period: "Whether you work by the

piece or work by the day, decreasing the hours increases the pay."

Steward believed that the amount of wages is determined by no other

factor than the worker's standard of living. He held that wages cannot

fall below the standard of living not because, as the classical

economists said, it would cause late marriages and a reduction in the

supply of labor, but solely because the wage earner will refuse to work

for less than enough to maintain his standard of living. Steward

possessed such abundant faith in this purely psychological check on the

employer that he made it the cornerstone of his theory of social

progress. Raise the worker's standard of living, he said, and the

employer will be immediately forced to raise wages; no more can wages

fall below the level of the worker's standard of living than New England

can be ruled against her will. The lever for raising the standard of

living was the eight-hour day. Increase the worker's leisure and you

will increase his wants; increase his wants and you will immediately

raise his wages. Although he occasionally tried to soften his doctrine

by the argument that a shorter work-day not only does not decrease but

may actually increase output, his was a distinctly revolutionary

doctrine; he aimed at the total abolition of profits through their

absorption into wages. But the instrument was nothing more radical than

a progressive universal shortening the hours.

So much for the general policy. To bring it to pass two alternatives

were possible: trade unionism or legislation. Steward chose the latter

as the more hopeful and speedy one. Steward knew that appeals to the

humanity of the employers had largely failed; efforts to secure the

reform by cooperation had failed; the early trade unions had failed; and

there seemed to be no recourse left now but to accomplish the reduction

of hours by legislative enactment.

In 1866 Steward organized the Grand Eight-Hour League of Massachusetts

as a special propagandist organization of the eight-hour philosophy. The

League was a secret organization with pass words and obligations,

intended as the central organization of a chain of subordinate leagues

in the State, afterwards to be created. Of a total of about eighty local

leagues in existence from 1865 to 1877, about twenty were in

Massachusetts, eight elsewhere in New England, at least twenty-five in

Michigan, four or five in Pennsylvania, about seven in Illinois, as many

in Wisconsin, and smaller numbers in Missouri, Iowa, Indiana, and

California. Michigan, Illinois, Iowa, and Pennsylvania had each a Grand

Eight-Hour League. Practically all of these organizations disappeared

soon after the panic of 1873.

The National Labor Union centered on the passage of an eight-hour law

for employes of the Federal government. It was believed, perhaps not

without some justice, that the effect of such law would eventually lead

to the introduction of the same standard in private employment--not

indeed through the operation of the law of supply and demand, for it was

realized that this would be practically negligible, but rather through

its contagious effect on the minds of employes and even employers. It

will be recalled that, at the time of the ten-hour agitation of the

thirties, the Federal government had lagged about five years behind

private employers in granting the demanded concession. That in the

sixties the workingmen chose government employment as the entering wedge

shows a measure of political self-confidence which the preceding

generation of workingmen lacked.

The first bill in Congress was introduced by Senator Gratz Brown of

Missouri in March 1866. In the summer a delegation from the National

Labor Union was received by President Andrew Johnson. The President

pointed to his past record favorable to the workingmen but refrained

from any definite promises. Finally, an eight-hour bill for government

employes was passed by the House in March 1867, and by the Senate in

June 1868. On June 29, 1868, President Johnson signed it and it went

into effect immediately.

The result of the eight-hour law was not all that the friends of the

bill hoped. The various officials in charge of government work put their

own interpretations upon it and there resulted much diversity in its

observance, and consequently great dissatisfaction. There seemed to be

no clear understanding as to the intent of Congress in enacting the law.

Some held that the reduction in working hours must of necessity bring

with it a corresponding reduction in wages. The officials' view of the

situation was given by Secretary Gideon Wells. He pointed out that

Congress, by reducing the hours of labor in government work, had forced

upon the department of the Navy the employment of a larger number of men

in order to accomplish the necessary work; and that at the same time

Congress had reduced the appropriation for that department. This had

rendered unavoidable a twenty percent reduction in wages paid employes

in the Navy Yard. Such a state of uncertainty continued four years

longer. At last on May 13, 1872, President Grant prohibited by

proclamation any wage reductions in the execution of the law. On May 18,

1872, Congress passed a law for the restitution of back pay.

The expectations of the workingmen that the Federal law would blaze the

way for the eight-hour system in private employment failed to

materialize. The depression during the seventies took up all the impetus

in that direction which the law may have generated. Even as far as

government work is concerned forty years had to elapse before its

application could be rounded out by extending it to contract work done

for the government by private employers.

We have dealt at length with this subject because it marked an important

landmark. It demonstrated to the wage earners that, provided they

concentrated on a modest object and kept up a steady pressure, their

prospects for success were not entirely hopeless, hard as the road may

seem to travel. The other and far more ambitious object of the

workingman of the sixties, that of enacting general eight-hour laws in

the several States, at first appeared to be within easy reach--so

yielding political parties and State legislatures seemed to be to the

demands of the organized workmen. Yet before long these successes proved

to be entirely illusory.

The year 1867 was the banner year for such State legislation. Eight-hour

laws were passed in Illinois, Wisconsin, Connecticut, Missouri, and New

York. California passed such a law in 1868. In Pennsylvania, Michigan,

Maryland, and Minnesota bills were introduced but were defeated. Two

common features characterized these laws, whether enacted or merely

proposed to the legislatures. There were none which did not permit of

longer hours than those named in the law, provided they were so

specified in the contract. A contract requiring ten or more hours a day

was perfectly legal. The eight-hour day was the legal day only "when the

contract was silent on the subject or where there is no express contract

to the contrary," as stated in the Wisconsin law. But the greatest

weakness was a lack of a provision for enforcement. New York's

experience is typical and characteristic. When the workingmen appealed

to Governor Fenton to enforce the law, he replied that the act had

received his official signature and he felt that it "would be an

unwarrantable assumption" on his part to take any step requiring its

enforcement. "Every law," he said, "was obligatory by its own nature,

and could derive no additional force from any further act of his."

In Massachusetts, however, the workingmen succeeded after hard and

protracted labor in obtaining an enforceable ten-hour law for women--the

first effective law of its kind passed in any American State. This law,

which was passed in 1874, provides that "no minor under the age of

eighteen years, and no woman over that age" shall be employed more than

ten hours in one day or sixty hours in any one week in any manufacturing

establishment in the State. The penalty for each violation was fixed at

fifty dollars.

The repeated disappointments with politics and legislation led in the

early seventies to a revival of faith in trade unionism. Even in the

early sixties we find not a few unions, national and local, limiting

their hours by agreement with employers. The national unions, however,

for the most part left the matter to the local unions for settlement as

their strength or local conditions might dictate. In some cases the

local unions were advised to accept a reduction of wages in order to

secure the system, showing faith in Steward's theory that such reduction

could not be permanent.

The movement to establish the eight-hour day through trade unionism

reached its climax in the summer of 1872, when business prosperity was

at its height. This year witnessed in New York City a general eight-hour

strike. However, it succeeded in only a few trades, and even there the

gain was only temporary, since it was lost during the years of

depression which followed the financial panic of 1873.

To come back to the National Labor Union. At the second convention in

1867 the enthusiasm was transferred from eight-hour laws to the bizarre

social reform philosophy known as "greenbackism."

"Greenbackism" was, in substance, a plan to give the man without capital

an equal opportunity in business with his rich competitor. It meant

taking away from bankers and middlemen their control over credit and

thereby furnishing credit and capital through the aid of the government

to the producers of physical products. On its face greenbackism was a

program of currency reform and derived its name from the so-called

"greenback," the paper money issued during the Civil War. But it was

more than currency reform--it was industrial democracy.

"Greenbackism" was the American counterpart of the contemporary

radicalism of Europe. Its program had much in common with that of

Lassalle in Germany who would have the state lend its credit to

cooperative associations of workingmen in the confident expectation that

with such backing they would drive private capitalism out of existence

by the competitive route. But greenbackism differed from the scheme of

Lassalle in that it would utilize the government's enormous Civil War

debt, instead of its taxing power, as a means of furnishing capital to

labor. This was to be done by reducing the rate of interest on the

government bonds to three percent and by making them convertible into

legal tender currency and convertible back into bonds, at the will of

the holder of either. In other words, the greenback currency, instead of

being, as it was at the time, an irredeemable promise to pay in specie,

would be redeemable in government bonds. On the other hand, if a

government bondholder could secure slightly more than three percent by

lending to a private borrower, he would return his bonds to the

government, take out the corresponding amount in greenbacks and lend it

to the producer on his private note or mortgage. This would involve, of

course, the possible inflation of legal tender currency to the amount of

outstanding bonds. But inflation was immaterial, since all prices would

be affected alike and meanwhile the farmers, the workingmen, and their

cooperative establishments would be able to secure capital at slightly

more than three percent instead of the nine or twelve percent which they

were compelled to pay at the bank. Thereby they would be placed on a

competitive level with the middleman, and the wage earner would be

assisted to escape the wage system into self-employment.

Such was the curious doctrine which captured the leaders of the

organized wage earners in 1867. The way had indeed been prepared for it

in 1866, when the wage earners espoused producers' cooperation as the

only solution. But, in the following year, 1867, they concluded that no

system of combination or cooperation could secure to labor its natural

rights as long as the credit system enabled non-producers to accumulate

wealth faster than labor was able to add to the national wealth.

Cooperation would follow "as a natural consequence," if producers could

secure through legislation credit at a low rate of interest. The

government was to extend to the producer "free capital" in addition to

free land which he received with the Homestead Act.

The producers' cooperation, which offered the occasion for the espousal

of greenbackism, was itself preceded by a movement for consumers'

cooperation. Following the upward sweep of prices, workmen had begun

toward the end of 1862 to make definite preparations for distributive

cooperation. They endeavored to cut off the profits of the middleman by

establishing cooperative grocery stores, meat markets, and coal yards.

The first substantial effort of this kind to attract wide attention was

the formation in December 1862, of the Union Cooperative Association of

Philadelphia, which opened a store. The prime mover and the financial

secretary of this organization was Thomas Phillips, a shoemaker who came

from England in 1852, fired with the principles of the Rochdale

pioneers, that is, cash sales, dividends on purchases rather than on

stock, and "one man, one vote." By 1866 the movement had extended until

practically every important industrial town between Boston and San

Francisco had some form of distributive cooperation. This was the high

tide of the movement. Unfortunately, the condition of the country was

unfavorable to these enterprises and they were destined to early

collapse. The year 1865 witnessed disastrous business failures. The

country was in an uncertain condition and at the end of the sixties the

entire movement had died out.

From 1866 to 1869 experiments in productive cooperation were made by

practically all leading trades including the bakers, coach makers,

collar makers, coal miners, shipwrights, machinists and blacksmiths,

foundry workers, nailers, ship carpenters, and calkers, glass blowers,

hatters, boiler makers, plumbers, iron rollers, tailors, printers,

needle women, and molders. A large proportion of these attempts grew out

of unsuccessful strikes. The most important undertakings were among the

workers in iron, undoubtedly due in large measure to the indefatigable

efforts of William H. Sylvis, the founder of the Iron Molders'

International Union.

At the close of 1869 members of the Iron Molders' International Union

owned and operated many cooperative foundries chiefly in New York and

Pennsylvania. The first of the foundries established at Troy in the

early summer of 1866 was followed quickly by one in Albany and then

during the next eighteen months by ten more--one each in Rochester,

Chicago, Quincy, Louisville, Somerset, Pittsburgh, and two each in Troy

and Cleveland. The original foundry at Troy was an immediate financial

success and was hailed with joy by those who believed that under the

name of cooperationists the baffled trade unionists might yet conquer.

The New York _Sun_ congratulated the iron molders of Troy and declared

that Sylvis had checkmated the association of stove manufacturers and,

by the establishment of this cooperative foundry, had made the greatest

contribution of the year to the labor cause.

But the results of the Troy experiment, typical of the others, show how

far from a successful solution of the labor problem is productive

cooperation. Although this "Troy Cooperative Iron Founders' Association"

was planned with great deliberation and launched at a time when the

regular stove manufacturers were embarrassed by strikes, and although it

was regularly incorporated with a provision that each member was

entitled to but one vote whether he held one share at $100, or the

maximum privilege of fifty in the total of two thousand shares, it

failed as did the others in furnishing permanent relief to the workers

as a class. At the end of the third year of this enterprise, the

_American Workman_ published a sympathetic account of its progress

unconsciously disclosing its fatal weakness, namely, the inevitable

tendency of cooperators to adopt the capitalistic view. The writer of

this account quotes from these cooperators to show that "the fewer the

stockholders in the company the greater its success."

A similar instance is furnished by the Cooperative Foundry Company of

Rochester. This venture has also been a financial success, though a

partial failure as a cooperative enterprise. When it was established in

1867 all employes were stockholders and profits were divided as follows:

Twelve percent on capital and the balance in proportion to the earnings

of the men. But the capitalist was stronger than the cooperative

brother. Dividends on capital were advanced in a few years to seventeen

and one-half percent, then to twenty-five, and finally the distribution

of any part of the profits in proportion to wages was discontinued.

Money was made every year and dividends paid, which in 1884 amounted to

forty percent on the capital. At that time about one-fifth of the

employes were stockholders. Also in this case cooperation did not

prevent the usual conflict between employer and employe, as is shown in

a strike of three and a half months' duration. It is interesting to

notice that one of the strikers, a member of the Molders' Union, owned

stock to the amount of $7000.

The machinists, too, throughout this period took an active interest in

cooperation. Their convention which met in October, 1865, appointed a

committee to report on a plan of action to establish a cooperative shop

under the auspices of the International Union. The plan failed of

adoption, but of machinists' shops on the joint-stock plan there were a

good many. Two other trades noted for their enthusiasm for cooperation

at this time were the shoemakers and the coopers. The former, organized

in the Order of St. Crispin, then the largest trade union in the

country, advocated cooperation even when their success in strikes was at

its height. "The present demand of the Crispin is steady employment and

fair wages, but his future is self-employment" was one of their mottoes.

During the seventies they repeatedly attempted to carry this motto into

effect. The seventies also saw the beginning of the most successful

single venture in productive cooperation ever undertaken in this

country, namely, the eight cooperative cooperage shops in Minneapolis,

which were established at varying intervals from 1874 to 1886. The

coopers took care to enforce true cooperation by providing for equal

holding of stock and for a division of ordinary profits and losses in

proportion to wages. The cooper shops prospered, but already ten years

later four out of the eight existing in 1886 had passed into private

hands.

In 1866 when the eight-hour demand was as yet uppermost, the National

Labor Union resolved for an independent labor party. The espousal of

greenbackism in 1867 only reenforced that resolution. The leaders

realized only too well that neither the Republican nor Democratic party

would voluntarily make an issue of a scheme purporting to assist the

wage earner to become an independent producer. Accordingly, the history

of the National Labor Union became largely the history of labor's first

attempt to play a lone political hand on a national scale.

Each annual session of the National Labor Union faithfully reaffirmed

the decision to "cut loose" from the old parties. But such a vast

undertaking demanded time. It was not until 1872 that the National Labor

Union met as a political convention to nominate a national ticket. From

the first the stars were inauspicious. Charges were made that political

aspirants sought to control the convention in order to influence

nominations by the Republican and Democratic parties. A "greenback"

platform was adopted as a matter of course and the new party was

christened the National Labor and Reform Party. On the first formal

ballot for nomination for President, Judge David Davis of Illinois, a

personal friend of Abraham Lincoln, received 88 votes, Wendell Phillips,

the abolitionist, 52, and the remainder scattered. On the third ballot

Davis was nominated. Governor J. Parker of New Jersey was nominated for

Vice-President. At first Judge Davis accepted the nomination, but

resigned after the Democrats had nominated Horace Greeley. The loss of

the candidate spelled the death of the party. The National Labor Union

itself had been only an empty shell since 1870, when the national trade

unions, disaffected with the turn towards politics, withdrew. Now, its

pet project a failure, it, too, broke up.

In 1873, on the eve of the financial panic, the national trade unions

attempted to reconstruct a national labor federation on a purely

trade-union basis in the form of a National Industrial Congress. But the

economic disaster of the panic nipped it in the bud just as it cut off

the life of the overwhelming majority of the existing labor

organizations. Another attempt to get together on a national basis was

made in the National Labor Congress at Pittsburgh in 1876. But those who

responded were not interested in trade unionism and, mirroring the

prevailing labor sentiment during the long years of depressions, had

only politics on their mind, greenback or socialist. As neither

greenbacker nor socialist would meet the other half-way, the attempt

naturally came to naught.

Greenbackism was popular with the working people during the depressed

seventies because it now meant to them primarily currency inflation and

a rise of prices and, consequently, industrial prosperity--not the

phantastic scheme of the National Labor Union. Yet in the Presidential

election of 1876 the Greenback party candidate, Peter Cooper, the well

known manufacturer and philanthropist, drew only a poor 100,000, which

came practically from the rural districts only. It was not until the

great strikes of 1877 had brought in their train a political labor

upheaval that the greenback movement assumed a formidable form.

The strikes of 1877, which on account of the wide area affected, the

degree of violence displayed, and the amount of life and property lost,

impressed contemporaries as being nothing short of social revolution,

were precipitated by a general ten percent reduction in wages on the

three trunk lines running West, the Pennsylvania, the Baltimore & Ohio,

and the New York Central, in June and July 1877. This reduction came on

top of an earlier ten percent reduction after the panic. The railway men

were practically unorganized so that the steadying influence of previous

organization was totally lacking in the critical situation of unrest

which the newly announced wage reduction created. One must take also

into account that in the four terrible years which elapsed since the

panic, America had developed a new type of a man--the tramp--who

naturally gravitated towards places where trouble was expected.

The first outbreak occurred at Martinsburg, West Virginia, on July 17,

the day after the ten percent reduction had gone into effect. The

strike spread like wildfire over the adjacent sections of the Baltimore

& Ohio road, the strikers assuming absolute control at many points. The

militia was either unwilling or powerless to cope with the violence. In

Baltimore, where in the interest of public safety all the freight trains

had stopped running, two companies of militia were beleaguered by a mob

to prevent their being dispatched to Cumberland, where the strikers were

in control. Order was restored only when Federal troops arrived.

But these occurrences fade into insignificance when compared with the

destructive effects of the strike on the Pennsylvania in and around

Pittsburgh. The situation there was aggravated by a hatred of the

Pennsylvania railway corporation shared by nearly all residents on the

ground of an alleged rate discrimination against the city. The

Pittsburgh militia fraternized with the strikers, and when 600 troops

which arrived from Philadelphia attempted to restore order and killed

about twenty rioters, they were besieged in a roundhouse by a furious

mob. In the battle the railway yards were set on fire. Damages amounting

to about $5,000,000 were caused. The besieged militia men finally gained

egress and retreated fighting rear-guard actions. At last order was

restored by patrols of citizens. The strike spread also to the Erie

railway and caused disturbances in several places, but not nearly of the

same serious nature as on the Baltimore & Ohio and the Pennsylvania. The

other places to which the strike spread were Toledo, Louisville,

Chicago, St. Louis, and San Francisco.

The strikes failed in every case but their moral effect was enormous.

The general public still retained a fresh memory of the Commune of Paris

of 1871 and feared for the foundations of the established order. The

wage earners, on the other hand, felt that the strikers had not been

fairly dealt with. It was on this intense labor discontent that the

greenback agitation fed and grew.

Whereas in 1876 the greenback labor vote was negligible, notwithstanding

the exhortations by many of the former trade union leaders who turned

greenback agitators, now, following the great strikes, greenbackism

became primarily a labor movement. Local Greenback-Labor parties were

being organized everywhere and a national Greenback-Labor party was not

far behind in forming. The continued industrial depression was a

decisive factor, the winter of 1877-1878 marking perhaps the point of

its greatest intensity. Naturally the greenback movement was growing

apace. One of the notable successes in the spring of 1878 was the

election of Terence V. Powderly, later Grand Master Workman of the

Knights of Labor, as mayor of Scranton, Pennsylvania.

The Congressional election in the autumn of 1878 marked the zenith of

the movement. The aggregate greenback vote cast in the election exceeded

a million, and fourteen Representatives were sent to Congress. In New

England the movement was strong enough to poll almost a third of the

total vote in Maine, over 8 percent of the total vote in both

Connecticut and New Hampshire, and from 4 to 6 percent, in the other

States. In Maine the greenbackers elected 32 members of the upper house

and 151 members of the lower house and one Congressman, Thompson Murch

of Rochland, who was secretary of the National Granite Cutters' Union.

However, the bulk of the vote in that State was obviously agricultural.

In Massachusetts, the situation was dominated by General Benjamin F.

Butler, lifelong Republican politician, who had succeeded in getting

the Democratic nomination for governor and was endorsed by the Greenback

convention. He received a large vote but was defeated for office.

But just as the Greenback-Labor movement was assuming promising

proportions a change for the better in the industrial situation cut

under the very roots of its existence. In addition, one month after the

election of 1878, its principal issue disappeared. January 1, 1879, was

the date fixed by the act for resumption of redemption of greenbacks in

gold and on December 17, 1878, the premium on gold disappeared. From

that day on, the greenback became a dead issue.

Another factor of great importance was the large increase in the volume

of the currency. In 1881 the currency, which had averaged about

$725,000,000 for the years 1876-1878, reached over $1,111,000,000. Under

these conditions, all that remained available to the platform-makers and

propagandists of the party was their opposition to the so-called

"monopolistic" national banks with their control over currency and to

the refunding of the bonded debt of the government.

The disappearance of the financial issue snapped the threads which had

held together the farmer and the wage-worker. So long as depression

continued, the issue was financial and the two had, as they thought, a

common enemy--the banker. The financial issue once settled, or at least

suspended, the object of the attack by labor became the employer, and

that of the attack by the farmer--the railway corporation and the

warehouse man. Prosperity had mitigated the grievances of both classes,

but while the farmer still had a great deal to expect from politics in

the form of state regulation of railway rates, the wage earners'

struggle now turned entirely economic and not political.

In California, as in the Eastern industrial States, the railway strikes

of 1877 precipitated a political movement. California had retained gold

as currency throughout the entire period of paper money, and the labor

movement at no time had accepted the greenback platform. The political

issue after 1877 was racial, not financial, and the weapon was not

merely the ballot, but also "direct action"--violence. The anti-Chinese

agitation in California, culminating as it did in the Exclusion Law

passed by Congress in 1882, was doubtless the most important single

factor in the history of American labor, for without it the entire

country might have been overrun by Mongolian labor and the labor

movement might have become a conflict of races instead of one of

classes.[10]

The seventies witnessed another of those recurring attempts of

consumers' cooperation already noticed in the forties and sixties. This

time the movement was organized by the "Sovereigns of Industry," a

secret order, founded at Worcester, Massachusetts, in 1874 by one

William H. Earle. The spirit of the Order was entirely peaceful and

unobtrusive as expressed in the first paragraph of the Declaration of

Purposes which reads as follows:

"The Order of the Sovereigns of Industry is an association of the

industrial or laboring classes, without regard to race, sex, color,

nationality, or occupation; not founded for the purpose of waging any

war of aggression upon any other class, or for fostering any antagonism

of labor against capital, or of arraying the poor against the rich; but

for mutual assistance in self-improvement and self-protection."

The scheme of organization called for a local council including members

from the town or district, a state council, comprising representatives

from the local councils and a National Council in which the States were

represented. The president of the National Council was the founder of

the Order, William H. Earle.

Success accompanied the efforts of the promoters of the Sovereigns of

Industry for a few years. The total membership in 1875-1876 was 40,000,

of whom seventy-five percent were in New England and forty-three percent

in Massachusetts. Though the Order extended into other States and even

reached the territories, its chief strength always remained in New

England and the Middle States. During the last period of its existence a

national organ was published at Washington, but the Order does not

appear to have gained a foothold in any of the more Southern sections of

the country.

In 1875, 101 local councils reported as having some method of supplying

members with goods, 46 of whom operated stores. The largest store

belonged to the council at Springfield, Massachusetts, which in 1875

built the "Sovereign Block" at a cost of $35,500. In his address at the

fourth annual session in Washington, President Earle stated that the

store in Springfield led all the others with sales amounting to $119,000

for the preceding year. About one-half of the councils failed to report,

but at the Congress of 1876 President Earle estimated the annual trade

at $3,000,000.

Much enthusiasm accompanied the progress of the movement. The hall in

"Sovereign Block" at Springfield was dedicated amid such jubilation as

marks an event thought to be the forerunner of a new era. There is

indeed a certain pathos in the high hopes expressed in the Address of

Dedication by President Earle, for, though the Order continued to thrive

until 1878, shortly after a decline began, and dissolution was its fate

in 1880.

The failure of the Sovereigns marked the latest attempt on a large

scale[11] to inoculate the American workingmen with the sort of

cooperative spirit which proved so successful in England.[12]

This failure of distributive cooperation to gain the strong and lasting

foothold in this country that it has abroad has been accounted for in

various ways by different writers. Great emphasis has been laid upon the

lack of capital, the lack of suitable legislation on the subject of

cooperation, the mutual isolation of the educated and wage-earning

classes, the lack of business ability among wage earners, and the

altogether too frequent venality and corruption among cooperators.

Probably the lack of adequate leadership has played as important a part

as any. It is peculiar to America that the wage earner of exceptional

ability can easily find a way for escaping into the class of independent

producers or even employers of labor. The American trade union movement

has suffered much less from this difficulty. The trade unions are

fighting organizations; they demand the sort of leader who is of a

combative spirit, who possesses the organizing ability and the "personal

magnetism" to keep his men in line; and for this kind of ability the

business world offers no particular demand. On the other hand, the

qualifications which go to make a successful manager of a cooperative

store, namely, steadiness, conservatism of judgment, attention to detail

and business punctuality always will be in great demand in the business

world. Hence, when no barrier is interposed in the form of preempted

opportunities or class bias, the exceptional workingman who possesses

these qualifications will likely desert his class and set up in business

for himself. In England, fortunately for the cooperative movement, such

an escape is very difficult.

The failure of consumers' cooperation in America was helped also by two

other peculiarly American conditions. European economists, when speaking

of the working class, assume generally that it is fixed in residence and

contrast it with capital, which they say is fluid as between city and

city and even between country and country. American labor, however,

native as well as immigrant, is probably more mobile than capital; for,

tradition and habit which keep the great majority of European wage

earners in the place where their fathers and forefathers had lived

before them are generally absent in this country, except perhaps in

parts of New England and the South. It is therefore natural that the

cooperative spirit, which after all is but an enlarged and more

generalized form of the old spirit of neighborliness and mutual trust,

should have failed to develop to its full strength in America.

Another condition fatal to the development of the cooperative spirit is

the racial heterogeneity of the American wage-earning class, which

separates it into mutually isolated groups even as the social classes of

England and Scotland are separated by class spirit. As a result, we find

a want of mutual trust which depends so much on "consciousness of kind."

This is further aggravated by competition and a continuous displacement

in industry of nationalities of a high standard of living by those of a

lower one. This conflict of nationalities, which lies also at the root

of the closed shop policy of many of the American trade unions, is

probably the most effective carrier that there is to a widespread growth

of the cooperative spirit among American wage earners. This is further

hindered by other national characteristics which more or less pervade

all classes of society, namely, the traditional individualism--the

heritage of puritanism and the pioneer days, and the emphasis upon

earning capacity with a corresponding aversion to thrift.

FOOTNOTES:

[10] The National Labor Union came out against Chinese immigration in

1869, when the issue was brought home to the Eastern wage earners

following the importation by a shoe manufacturer in North Adams,

Massachusetts, of Chinese strike breakers.

[11] There were many cooperative stores in the eighties and a concerted

effort to duplicate the venture of the Sovereigns was attempted as late

as 1919 under the pressure of the soaring cost of living.

[12] Where Consumers' Cooperation has worked under most favorable

conditions as in England, its achievements have been all that its most

ardent champions could have desired. Such is the picture presented by

Mr. and Mrs. Sidney Webb in the following glowing terms:

"The organization of industry by Associations of Consumers offers, as

far as it goes, a genuine alternative to capitalist ownership, because

it supersedes the capitalist power, whether individual or joint-stock,

alike in the control of the instruments of production by which the

community lives, and in the absorption of the profits, which otherwise

support a capitalist class. The ownership and control are vested in, and

the profits are distributed among, the whole community of consumers,

irrespective of their industrial wealth. Through the device of dividend

on purchases the Cooperative Movement maintains an open democracy,

through the control of this democracy of consumers it has directly or

indirectly kept down prices, and protected the wage-earning class from

exploitation by the Credit System and from the extortions of monopolist

traders and speculators. By this same device on purchases, and the

automatic accumulation of part of the profit in the capital of each

society and in that of the Wholesales, it has demonstratedly added to

the personal wealth of the manual working class, and has, alike in Great

Britain, and in other countries, afforded both a valuable financial

reserve to the wage earners against all emergencies and an instrument

for their elevation from the penury to which competition is always

depressing them. By making possible the upgrowth of great business

enterprises in working class hands, the Cooperative Movement has,

without divorcing them from their fellows, given to thousands of the

manual workers both administrative experience and a well-grounded

confidence; and has thus enabled them to take a fuller part in political

and social life than would otherwise have been probable."--_New

Statesman_, May 30, 1916. "Special Supplement on the Cooperative

Movement."

Indeed the success of the consumer's cooperative movement in European

countries has been marvellous, even measured by bare figures. In all

Europe in 1914, there were about 9,000,000 cooperators of whom one-third

lived in Great Britain and not less than two and a half millions in

Germany. In England and Scotland alone, the 1400 stores and two

Wholesale Cooperative Societies controlled in 1914 about 420 million

dollars of retail distributive trade and employed nearly 50,000

operatives in processes of production in their own workshops and

factories.

A History of Trade Unionism in the United States · 第 2 / 9 章