<h2><SPAN name="CHAPTER_LXV" id="CHAPTER_LXV"></SPAN>CHAPTER LXV<br/><br/> SOCIAL REVOLUTION</h2>
<div class="blockquot"><p>(How the great change is coming in different industries, and how we
may prepare to meet it.)</p>
</div>
<p>From a study of the world's political revolutions we observe that a
variety of governmental forms develop, and that different circumstances
in each country produce different institutions. Suppose that back in the
days of the French monarchy some one asked you how France was going to
be governed as a political republic; how would elections be held, what
would be the powers of the deputies, who would choose the premier, who
would choose the president, what would be the duties of each? Who can
explain why in France and England the executive is responsible to the
parliament and must answer its questions, while in the United States the
executive is an autocrat, responsible to no one for four years? Who
could have foreseen that in England, supposed to remain a monarchy, the
constitution would be fluid; while in America, supposed to be a
democracy, the constitution would be rigid, and the supreme power of
rejecting changes in the laws would be vested in a group of reactionary
lawyers appointed for life? There will be similar surprises in the
social revolution, and similar differences between what things pretend
to be and what they are.</p>
<p>I used to compare the social revolution to the hatching of an egg. You
examine it, and apparently it is all egg; but then suddenly something
begins to happen, and in a few minutes it is all chicken. If, however,
you investigate, you discover that the chicken had been forming inside
the egg for some time. I know that there is a chicken now forming inside
our social egg; but having realized the complexity of social phenomena,
I no longer venture to predict the exact time of the hatching, or the
size and color of the chicken.</p>
<p>Perhaps it is more useful to compare the social revolution to a
child-birth. A good surgeon knows what is due to happen, but he knows
also that there are a thousand uncertainties, a thousand dangerous
possibilities, and all he can do is to watch the process and be prepared
to meet each emergency as it arises.<SPAN name="vol_ii_page_176" id="vol_ii_page_176"></SPAN> The birth process consists of one
pang after another, but no one can say which pang will complete the
birth, or whether it will be completed at all. Karl Marx is author of
the saying that "force is the midwife of progress," so you may see that
I am not the inventor of this simile of child-birth.</p>
<p>There are three factors in the social revolution, each of which will
vary in each country, and in different parts of the country, and at
different periods. First, there is the industrial condition of the
country, a complex set of economic factors. The industrial life of
England depends primarily on shipping and coal. In the United States
shipping is of less importance, and railroads take the place. In the
United States the eastern portion lives mainly by manufacture, the
western by agriculture, while the south is held a generation behind by a
race problem. In France the great estates were broken up, and
agriculture fell into the hands of peasant proprietors, who are the main
support of French capitalism. In Prussia the great estates were held
intact, and remained the basis of a feudal aristocracy. In America land
changes hands freely, and therefore one-third of our farms are
mortgaged, and another third are worked by tenants. In Russia there was
practically no middle class, while in the United States there is
practically nothing but middle class; the rich have been rich for such a
short while that they still look middle class and act middle class, in
spite of all their efforts, while the working class hopes to be middle
class and is persuaded that it can become middle class. Such varying
factors produce in each country a different problem, and make inevitable
a different process of change.</p>
<p>The second factor is the condition of organization and education of the
workers. This likewise varies in every country, and in every part of
every country. There is a continual struggle on the part of the workers
to organize and educate themselves, and a continual effort on the part
of the ruling class to prevent this. In some industries in America you
find the workers one hundred per cent organized, and in other industries
you find them not organized at all. It is obvious that in the former
case the social change, when it comes, will be comparatively simple,
involving little bloodshed and waste; in the latter case there will be
social convulsions, rioting and destruction of property, disorganization
of industry and widespread distress.</p>
<p>The third factor is the state of mind of the propertied classes, the
amount of resistance they are willing to make to<SPAN name="vol_ii_page_177" id="vol_ii_page_177"></SPAN> social change. I have
done a great deal of pleading with the masters of industry in my
country; I have written appeals to Vincent Astor and John D.
Rockefeller, to capitalist newspapers and judges and congressmen and
presidents. I have been told that this is a waste of my time; that these
people cannot learn and will not learn, and that it is foolish to appeal
either to their hearts or their understanding. But I perceive that the
class struggle is like a fraction; it has a numerator and a denominator,
and you can increase the fraction just as well by decreasing the
denominator as by increasing the numerator. To vary the simile, here are
two groups of men engaged in a tug of war, and you can affect the result
just as decisively by persuading one group to pull less hard, as by
persuading the other group to pull harder.</p>
<p>Picture to yourself two factories. In factory number one the owner is a
hard-driving business man, an active spirit in the so-called "open-shop"
campaign. He believes in his divine right to manage industry, and he
believes also in the gospel of "all that the traffic will bear." He
prevents his men from organizing, and employs spies to weed out the
radicals and to sow dissensions. When a strike comes, he calls in the
police and the strike-breaking agencies, and in every possible way he
makes himself hated and feared by his workers. Then some day comes the
unemployment crisis, and a wave of revolt sweeping over the country. The
workers seize that factory and set up a dictatorship of the proletariat
and a "red terror." If the owner resists, they kill him; in any case,
they wipe out his interest in the business, and do everything possible
to destroy his power over it, even to his very name. They run the
business by a shop committee, and you have for that particular factory a
Syndicalist, or even Anarchist form of social reconstruction.</p>
<p>Now for factory number two, whose owner is a humane and enlightened man,
studying social questions and realizing his responsibility, and the
temporary nature of his stewardship. He gives his people the best
possible working conditions, he keeps open books and discusses wages and
profits with them, he educates the young workers, he meets with their
union committees on a basis of free discussion. When the unemployment
crisis comes and the wave of revolt sweeps the country, this man and his
workers understand one another. He says: "I can no longer pay profits,
and so I can no longer keep going under the profit system; but if you
are ready to run the plant, I am<SPAN name="vol_ii_page_178" id="vol_ii_page_178"></SPAN> ready to help you the best I can."
Manifestly, this man will continue the president of the corporation, and
if he trains his sons wisely, they will keep his place; so, instead of
having in that factory a dictatorship and a terror, you will have a
constitutional monarchy, gradually evolving into a democratic republic.<SPAN name="vol_ii_page_179" id="vol_ii_page_179"></SPAN></p>
<h2><SPAN name="CHAPTER_LXVI" id="CHAPTER_LXVI"></SPAN>CHAPTER LXVI<br/><br/> CONFISCATION OR COMPENSATION</h2>
<div class="blockquot"><p>(Shall the workers buy out the capitalists? Can they afford to do
it, and what will be the price?)</p>
</div>
<p>The problem of whether the social revolution shall be violent or
peaceable depends in great part upon our answer to the question of
confiscation versus compensation. We are now going to consider, first,
the abstract rights and wrongs of the question, and, second, the
practical aspects of it.</p>
<p>There is a story very popular among single taxers and other advocates of
freedom of the land. An English land-owner met a stranger walking on his
estate, and rebuked him for trespassing. Said the stranger, "You own
this land?" Said the other, "I do." "And how did you get it?" "I
inherited it from my father." "And how did your father get it?" "He
inherited it from his father." So on for half a dozen more ancestors,
until at last the Englishman answered, "He fought for it." Whereupon the
stranger took off his coat and rolled up his sleeves and said, "I'll
fight you for it."</p>
<p>This is all there is to say on the subject of the abstract rights of
land titles. There is no title to land which is valid on a historical
basis. Everything rests upon fraud and force, continued through endless
ages of human history. We in the United States took most of our land
from the Indians, and in the process our guiding rule was that the only
good Injun was a dead Injun. We first helped the English kings to take
large sections of our country from the French and Spanish, and then we
took them from the English king by a violent revolution. We purchased
our Southwestern states from Mexico, but not until we had taken the
precaution of killing some thousands of Mexicans in war, which had the
effect of keeping down the purchase price. It would be a simple matter
to show that all public franchises are similarly tainted with fraud.
Proudhon laid down the principle that "property is theft," and from this
principle it is an obvious conclusion that society has the right to
scrap all paper titles to wealth, and to start the world's industries
over again on the basis of share and share alike.<SPAN name="vol_ii_page_180" id="vol_ii_page_180"></SPAN></p>
<p>But stop and consider for a moment. "Property is theft," you say. But go
to your corner grocery, and tell the grocer that you deny his title to
the sack of prunes which he exhibits in front of his counter. He will
tell you that he has paid for them; but you answer that the prunes were
raised on stolen land, and shipped to him over a railroad whose
franchise was obtained by bribery. Will that convince the grocer? It
will not. Neither will it convince the policeman or the judge, nor will
it convince the voters of the country. Most people have a deeply rooted
conviction that there are rights to property now definitely established
and made valid by law. If you have paid taxes on land for a certain
period, the land "belongs" to you; and I am sure you might agitate from
now to kingdom come without persuading the American people that New
Mexico ought to be returned to Mexico, or the western prairies to the
Indian tribes.</p>
<p>Such are the facts; now let us apply them to the right of exploitation,
embodied in the ownership of a certain number of bonds or shares of
stock in the United States Steel Corporation. "Pass a law," says the
Socialist, "providing for the taking over of United States Steel by the
government." At once to every owner comes one single thought—are you
going to buy this stock, or are you going to confiscate it? If you
attempt confiscation, the courts will declare the law unconstitutional;
and you either have to defy the courts, which is revolutionary action,
or to amend the constitution. If you adopt the latter course, you have
before you a long period of agitation; you have to carry both houses of
Congress by a two-thirds majority, and the legislatures of three-fourths
of the States. You have to do this in the face of the most bitter and
infuriated opposition of those who are defending what they regard as
their rights. You have to meet the arguments of the entire capitalist
press of the country, and you have the certainty of widespread bribery
of your elected officials.</p>
<p>The prospect of doing all this under the forms of law seems extremely
discouraging; so come the Syndicalists, saying, "Let us seize the
factories, and stop the exploitation at the point of production." So
come the Communists, saying, "Let us overthrow capitalist government,
and break the net of bourgeois legality, and establish a dictatorship of
the proletariat, which will put an end to privilege and class domination
all at once." What are we to say to these different programs?</p>
<p>Suppose we buy out the stockholders of United States Steel,<SPAN name="vol_ii_page_181" id="vol_ii_page_181"></SPAN> and issue
to them government bonds, what have we accomplished? Nothing, say the
advocates of confiscation; we have changed the form of exploitation, but
the substance of it remains the same. The stockholders get their money
from the United States government, instead of from the United States
Steel Corporation; but they get their money just the same—the product,
not of their labor, but of the labor of the steel workers. Suppose we
carried out the same procedure all along the line; suppose the
government took over all industries, and paid for their securities with
government bonds. Then we should have capitalism administered by a
capitalist government, instead of by our present masters of industry; we
should have a state capitalism, instead of a private capitalism; we
should have the government buying and selling products, and exploiting
labor, and paying over the profits to an hereditary privileged class.
The capitalist system would go on just the same, except that labor would
have one all-powerful tyrant, instead of many lesser tyrants, as at
present.</p>
<p>So argue the advocates of confiscation. And the advocates of purchase
reply that in buying the securities of United States Steel, we should
fix the purchase price at the present market value of the property, and
that price, once fixed, would be permanent; all future unearned
increment of the steel industry would belong to the government instead
of to private owners. Consider, for example, what happened during the
world war. When I was a boy, soon after the Steel Trust was launched,
its stock was down to something like six dollars, and I knew small
investors who lost every dollar they had put in. But during the war,
steel stock soared to a hundred and thirty-six dollars per share; it
paid dividends of some thirty per cent per year, and accumulated
enormous surpluses besides.</p>
<p>The same thing was true of practically all the big corporations.
According to Secretary of the Treasury McAdoo, there were coal companies
which paid as high as eight hundred per cent per year; that is to say,
the profits in one year were eight times the total investment. Assuming
that our government bonds paid five per cent, it appears that the owners
of these coal companies got one hundred and sixty times as much under
our present private property system as they would have got under a
system of state purchase. Even completely dominated by capitalism as our
courts are today, they would not dare require us to pay for industries
more than six per cent on the market value<SPAN name="vol_ii_page_182" id="vol_ii_page_182"></SPAN> of the investment; and from
what I know of the inside graft of American big business that would be
restricting the private owners to less than one-fourth of what they are
getting at present.</p>
<p>We have already pointed out the economies that can be made by putting
industry under a uniform system. But all these, important as they are,
amount to little in comparison with the one great consideration, which
is that by purchasing large scale industry, we should break the "iron
ring"; we should thenceforth be able to do our manufacturing for use
instead of for profit, and so we should put an end to unemployment. Our
cheerful workers would throng into the factories, to produce for
themselves instead of for masters; and in one year of that we should so
change the face of our country that a return to the system of private
ownership would be unthinkable. In one year we could raise production to
such a point that the interest on the bonds we had issued would be like
the crumbs left over from a feast.<SPAN name="vol_ii_page_183" id="vol_ii_page_183"></SPAN></p>
<h2><SPAN name="CHAPTER_LXVII" id="CHAPTER_LXVII"></SPAN>CHAPTER LXVII<br/><br/> EXPROPRIATING THE EXPROPRIATORS</h2>
<div class="blockquot"><p>(Discusses the dictatorship of the proletariat, and its chances for
success in the United States.)</p>
</div>
<p>I am aware that the suggestion of paying for the industries we socialize
will sound tame and uninspiring to a lot of ardent young radicals of my
acquaintance. They will shake their heads sadly and say that I am
getting middle-aged and tired. We have seen in Russia and Hungary and
other places, so many illustrations of the quick and easy way to
expropriate the expropriators that now there is in every country a
considerable group of radicals who will hear to no program less
picturesque than barricades and councils of action.</p>
<p>In considering this question, I set aside all considerations of abstract
right or wrong, the justification for violence in the overthrow of
capitalist society. I put the question on the basis of cash, pure and
simple. It will cost a certain amount of money to buy out the owners,
and that money will have to be paid, as it is paid at present, out of
the labor of the useful workers. The workers don't want to pay any more
than they have to; the question they must consider is, which way will
they have to pay most. The advocates of the dictatorship of the
proletariat are lured by the delightful prospect of not having to pay
anything; and if that were really possible it would undoubtedly be the
better way. But we have to consider this question: Is the program of not
having to pay anything a reality, or is it only a dream? Suppose it
should turn out that we have to pay anyhow, and that in the case of
violent revolution we pay much more, and in addition run serious risk of
not getting what we pay for?</p>
<p>Here are enormous industries, running at full blast, and it is proposed
that some morning the workers shall rise up and seize them, and turn out
the owners and managers, and run the industries themselves. Will anybody
maintain that this can be done without stopping production in those
factories for a single day? Certainly production must stop during the
time you are<SPAN name="vol_ii_page_184" id="vol_ii_page_184"></SPAN> fighting for possession; and the cruel experience of
Russia proves that it will stop during the further time you are fighting
to keep possession, and to put down counter-revolutionary conspiracies.
Also, alas, it will stop during the time you are looking for somebody
who knows how to run that industry; it will stop during the time you are
organizing your new administrative staff. You may discover to your
consternation that it stops during the time you are arranging to get
other industries to give you credit, and to ship you raw materials; also
during the time you are finding the workers in other industries who want
your product, and are able to pay for it with something that you can
use, or that you can sell in a badly disorganized market.</p>
<p>And all the time that you are arranging these things, you are going to
have the workers at your back, not getting any pay, or being paid with
your paper money which they distrust, and growling and grumbling at you
because you are not running things as you promised. You see, the mass of
the workers are not going to understand, because you haven't made them
understand; you have brought about the great change by your program of a
dictatorship, of action by an "enlightened minority"; and now you have
the terror that the unenlightened majority may be won back by their
capitalist masters, and may kick you out of control, or even stand you
up against a wall and shoot you by a firing squad. And all the time you
are worrying over these problems, who can estimate the total amount the
factory might have been producing if it had been running at full blast?
Whatever that difference is, remember, it is paid by the workers; and
might that sum not just as well have been used to buy out the owners?</p>
<p>If we were back in the old days of hand labor and crude, unorganized
production, I admit that the only way to benefit the slaves might be to
turn out the masters by force. But here we have a social system of
infinite complexity, a delicate and sensitive machine, which no one
person in the world, and no group of persons understands thoroughly. In
the running of such a machine a slight blunder may cost a fortune; and
certainly all the skill, all the training, all the loyal services of our
expert engineers and managers is needed if we are to remodel that
machine while keeping it running. The amount of wealth which we could
save by the achieving of that feat would be sufficient to maintain a
class of owners in idleness and luxury<SPAN name="vol_ii_page_185" id="vol_ii_page_185"></SPAN> for a generation; and so I say,
with all the energy and conviction I possess, <i>pay them</i>! Pay them
anything that is necessary, in order to avoid civil war and social
disorganization! Pay them so much that they can have no possible cause
of complaint, that the most hide-bound capitalistic-minded judge in the
country cannot find a legal flaw in the bargain! Pay them so that every
engineer and efficiency expert and manager and foreman and stenographer
and office-boy will stay on the job and work double time to put the
enterprise through! Pay them such a price that even Judge Gary and John
D. Rockefeller will be willing to help us do the job of social
readjustment!</p>
<p>"Ah, yes," my young radical friends will say, "that sounds all very
beautiful, but it's the old Utopian dream of brotherhood and class
co-operation. That will never happen on this earth, until you have first
abolished capitalism." My answer is, it could happen tomorrow if we had
sufficient intelligence to make it happen. That it does not happen is
simply absence of intelligence. And will anyone maintain that it is the
part of an intelligent man to advocate a less intelligent course than he
knows? What is the use of our intelligence, if we abdicate its
authority, and give ourselves up to programs of action which we know are
blind and destructive and wasteful? We may see a great vessel going on
the rocks; we may feel certain that it is going, in spite of everything
we can do; but shall we fail to do what we can to make those in the
vessel realize how they might get safely into the harbor?</p>
<p>We have had the Russian revolution before us for four years. Mankind
will spend the next hundred years in studying it, and still have much to
learn, but the broad outlines of the great experiment are now plain
before our eyes. Russia was a backward country, and she tried to fight a
modern war, and it broke her down. She had practically no middle class,
and her ruling class was rotten, and so the revolutionists had their
chance, and they seized it. Perhaps it would be more correct to say that
they came to the rescue of Russia, saving her from the hands of those
who were trying to force her to fight, when she was utterly exhausted
and incapable of fighting.</p>
<p>Anyhow, here was your dictatorship of the proletariat. It turned out all
the executive experts, or nearly all of them, because they were tainted
with the capitalist psychology; and then straightway it had to call them
back and make terms with them, because industry could not be run without
them. And of<SPAN name="vol_ii_page_186" id="vol_ii_page_186"></SPAN> course these engineers and managers sabotaged the
revolution—every non-proletarian sabotaged it, both inside Russia and
outside. You denounced this, and protested against this, but all the
same it happened; it was human nature that it should happen, and it is
one of the things you have to count on, in any and every country where
you attempt the social revolution by minority action.</p>
<p>They have got power in Russia, and they dream of getting power in
America in the same way. But there is no such disorganization in our
country as there was in Russia, and it would take a generation of civil
strife to bring us to such a condition. We have a middle class,
powerful, thoroughly organized, and thoroughly conscious. Moreover, this
class has ideals of majority rule, which are bred in its very bones; and
while they have never realized these ideals, they think they have, and
they are prepared to fight to the last gasp in that belief. All that the
leaders of Moscow have to do is to bring about an attempt at forcible
revolution, and they will discover in American society sufficient power
of organization and of brutal action to put their movement out of
business for a generation.</p>
<p>A hundred years ago we had chattel slavery firmly fixed as the
industrial system of one-half of these United States. To far-seeing
statesmen it was manifest that chattel slavery was a wasteful system,
and that it could not exist in competition with free labor. There was a
great American, Henry Clay, who came forward with a proposition that the
people of the United States, through their government, should raise the
money, about a billion dollars, and compensate the owners of all the
slaves and set them free. For most of his lifetime Henry Clay pleaded
for that plan. But the masters of the South were making money fast; they
knew how to handle the negro as a slave, they could not imagine handling
him as a free laborer, and they would not hear to the plan. On the other
side of Mason and Dixon's line were fanatical men of "principle," who
said that slavery was wrong, and that was the end of it. There is a
stanza by Emerson discussing this question of confiscation versus
compensation:</p>
<table border="0" cellpadding="0" cellspacing="0" summary="poetry">
<tr><td align="left"><span style="margin-left: 0em;">Pay ransom to the owner</span></td></tr>
<tr><td align="left"><span style="margin-left: 1em;">And fill the bag to the brim.</span></td></tr>
<tr><td align="left"><span style="margin-left: 0em;">Who is the owner? The slave is owner,</span></td></tr>
<tr><td align="left"><span style="margin-left: 1em;">And ever was. Pay him.</span></td></tr>
</table>
<p><SPAN name="vol_ii_page_187" id="vol_ii_page_187"></SPAN></p>
<p>This, you see, is magnificent utterance, but as economic philosophy it
is reckless and unsound. The abolitionists of the North took up this
poem, and the slave power of the South answered with a battle-song:</p>
<table border="0" cellpadding="0" cellspacing="0" summary="poetry">
<tr><td align="left"><span style="margin-left: 0em;">War to the hilt,</span></td></tr>
<tr><td align="left"><span style="margin-left: 0em;">Theirs be the guilt,</span></td></tr>
<tr><td align="left"><span style="margin-left: 0em;">Who fetter the freeman to ransom the slave!</span></td></tr>
</table>
<p>And so the issue had to be fought out. It cost a million human lives and
five billions of treasure, and it set American civilization back a
generation. And now we confront exactly the same kind of emergency, and
are coming to exactly the same method of solution. We have white
wage-slaves clamoring for their freedom, and we have business men making
money out of them, and exercising power over them, and finding it
convenient and pleasant. They are going to fight it out in a civil war,
and which side is going to win I am not sure. But when the historians
come to write about it a couple of generations from now, let them be
able to record that there were a few men in the country who pleaded for
a sane and orderly and human solution of the problem, and who continued
to voice their convictions even in the midst of the cruel and wasteful
strife!<SPAN name="vol_ii_page_188" id="vol_ii_page_188"></SPAN></p>
<div style="break-after:column;"></div><br />