SECTION 2. THE RISE OF THE MONEY POWER
[Sidenote: Money crowned king]
In modern times, Money has been king. Perhaps at a certain period in the ancient world wealth had as much power as it has now, but in the Middle Ages it was not so. Money was then ignored by the tenant or serf who paid his dues in feudal service or in kind; it was despised by the noble as the vulgar possession of Jews or of men without gentle breeding, and it was hated by the church as filthy lucre, the root of all evil and, together with sex, as one of the chief instruments of Satan. The "religious" man would vow poverty as well as celibacy.
But money now became too powerful to be neglected or despised, and too desirable to be hated. In the age of transition the medieval and modern conceptions of riches are found side by side. When Holbein came to London the Hanse merchants there employed him to design a pageant for the coronation of Anne Boleyn. In their hall he painted two allegorical pictures, The Triumph of Poverty and The Triumph of Wealth. The choice of subjects was representative of the time of transition.
[Sidenote: Revolution]
The economic innovation sketched in the last few pages was followed by a social readjustment sufficiently violent and sufficiently rapid to merit the name of revolution. The wave struck different countries at {549} different times, but when it did come in each, it came with a rush, chiefly in the twenties in Germany and Spain, in the thirties and forties in England, a little later, with the civil wars, in France. It submerged all classes but the bourgeoisie; or, rather, it subjugated them all and forced them to follow, as in a Roman triumph, the conquering car of Wealth.
[Sidenote: Bourgeoisie uses monarchy]
The one other power in the state that was visibly aggrandized at the expense of other classes, besides the plutocracy, was that of the prince. This is sometimes spoken of as the result of a new political theory, an iniquitous, albeit unconscious, conspiracy of Luther and Machiavelli, to exalt the divine right of kings. But in truth their theories were but an expression of the accomplished, or easily foreseen, fact; and this fact was due in largest measure to the need of the commercial class for stable and for strong government. Riches, which at the dawn of the twentieth century seemed, momentarily, to have assumed a cosmopolitan character, were then bound up closely with the power of the state. To keep order, to bridle the lawless, to secure concessions and markets, a mercantile society needed a strong executive, and this they could find only in the person of the prince. Luther says that kings are only God's gaolers and hangmen, high-born and splendid because the meanest of God's servants must be thus accoutred. It would be a little truer to say that they were the gaolers and hangmen hired by the bourgeoisie to over-awe the masses and that their quaint trappings and titles were kept as an ornament to the gay world of snobbery.
[Sidenote: And other agencies]
Together with the monarchy, the new masters of men developed other instruments, parliamentary government in some countries, a bureaucracy in others, and a mercenary army in nearly all. At that time was either invented or much quoted the saying that {550} gold was one of the nerves of war. The expensive firearms that blew up the feudal castle were equally deadly when turned against the rioting peasants.
[Sidenote: To break the nobility]
Just as the burgher was ready to shoulder his way into the front rank, he was greatly aided by the frantic civil strife that broke out in both the older privileged orders. Never was better use made of the maxim, "divide and conquer," than when the Reformation divided the church, and the civil wars, dynastic in England, feudal in Germany and nominally religious in France, broke the sword of the noble. When the earls and knights had finished cutting each others' throats there were hardly enough of them left to make a strong stand. Occasionally they tried to do so, as in the revolt of Sickingen in Germany, of the Northern Earls in England, and in the early stages of the rising of the Communeros in Spain. In every case they were defeated, and the work of the sword was completed by the axe and the dagger. Whether they trod the blood-soaked path to the Tower, or whether they succumbed to the hired assassins of Catharine, the old nobles were disposed of and the power of their caste was broken. But their places were soon taken by new men. Some bought baronies and titles outright, others ripened more gradually to these honors in the warmth of the royal smile and on the sunny slopes of manors wrested from the monks. But the end finally attained was that the coronet became a mere bauble in the hands of the rich, the final badge of social deference to success in money-making.
[Sidenote: Plunder the church]
Still more violent was the spoliation of the church. The confiscations carried out in the name of religion redounded to the benefit of the newly rich. It is true that all the property taken did not fall into their hands; some was kept by the prince, more was used to found or endow hospices, schools and asylums for the poor. {551} But the most and the best of the land was soon thrown to the eager grasp of traders and merchants. In England probably one-sixth of all the cultivated soil in the kingdom was thus transferred, in the course of a few years, into the hands of new men. Thus were created many of the "county families" of England, and thus the new interest soon came to dominate Parliament. Under Henry VII the House of Lords, at one important session, mustered thirty spiritual and only eighteen temporal peers. In the reign of his son the temporal peers came to outnumber the spiritual, from whom the abbots had been subtracted. The Commons became, what they remained until the nineteenth century, a plutocracy representing either landed or commercial wealth.
Somewhat similar secularizations of ecclesiastical property took place throughout Germany, the cities generally leading. The process was slow, but certain, in Electoral Saxony, Hesse and the other Protestant territories, and about the same time in Sweden and in Denmark. But something the same methods were recommended even in Roman Catholic lands and in Russia of the Eastern Church, so contagious were the examples of the Reformers. [Sidenote: 1536] Venice forbade gifts or legacies to church or cloisters. [Sidenote: 1557] France, where confiscation was proposed, [Sidenote: 1516] partially attained the same ends by subjecting the clergy to the power of the crown.
[Sidenote: Bourgeoisie]
Among the groups into which society naturally falls is that of the intellectual class, the body of professional men, scientists, writers and teachers. [Sidenote: Bribes the intelligentsia] This group, just as it came into a new prominence in the sixteenth century, at the same time became in part an annex and a servant to the money power. The high expense of education as compared with the Middle Ages, the enormous fees then charged for graduating in professional schools, the custom of buying {552} livings in the church and practices in law and medicine, the need of patronage in letters and art, made it nearly impossible for the sons of the poor to enter into the palace of learning. Moreover the patronage of the wealthy, their assertion of a monopoly of good form and social prestige, seduced the professional class that now ate from the merchant's hand, aped his manners, and served his interests. For four hundred years law, divinity, journalism, art, and education, have cut their coats, at least to some extent, in the fashion of the court of wealth.
[Sidenote: And subjugates the proletariat]
Last of all, there remained the only power that proved itself nearly a match for money, that of labor. Far outnumbering the capitalists, in every other way the workers were their inferiors,—in education, in organization, in leadership and in material resources. One thing that made their struggle so hard was that those men of exceptional ability who might have been their leaders almost always made fortunes of their own and then turned their strength against their former comrades. Labor also suffered terribly from quacks and ranters with counsels of folly or of madness.
The social wars of the sixteenth century partook of the characteristics of both medieval and modern times. The Peasants' Revolt in Germany was both communistic and religious; the risings of Communeros and the Hermandad in Spain were partly communistic; the several rebellions in England were partly religious. But a new element marked them all, the demand on the part of the workers for better wages and living conditions. The proletariat of town and mining district joined the German peasants in 1524; the revolt was in many respects like a gigantic general strike.
[Sidenote: Emancipation of the serfs]
Great as are the ultimate advantages of freedom, the emancipation of the serfs cannot be reckoned as {553} an immediate economic gain to them. They were freed not because of the growth of any moral sentiment, much less as the consequence of any social cataclysm, but because free labor was found more profitable than unfree. It is notable that serfs were emancipated first in those countries like Scotland where there had been no peasants' revolt; the inference is that they were held in bondage in other countries longer than it was profitable to do so for political reasons. The last serf was reclaimed in Scotland in 1365, but the serfs had not been entirely freed in England even in the reign of Elizabeth. In France the process went on rapidly in the 15th century, often against the wishes of the serfs themselves. One hundred thousand peasants emigrated from Northern France to Burgundy at that time to exchange their free for a servile state. However, they did not enjoy their bondage for long. Serfs in the Burgundian state, especially in the Netherlands, lost their last chains in the sixteenth century, most rapidly between the years 1515 and 1531. In Germany serfdom remained far beyond the end of the sixteenth century, doubtless in part because of the fears excited by the civil war of 1525.
[Sidenote: Regulation of labor]
In place of the old serfdom under one master came a new and detailed regulation of labor by the government. This regulation was entirely from the point of view, and consequently all but entirely in the interests, of the propertied classes. The form was the old form of medieval paternalism, but the spirit was the new spirit of capitalistic gain. The endeavor of the government to be fair to the laborer as well as to the employer is very faint, but it is just perceptible in some laws.
Most of the taxes and burdens of the state were loaded on the backs of the poor. Hours of labor were fixed at from 12 to 15 according to the season. {554} Regulation of wages was not sporadic, but was a regular part of the work of certain magistrates, in England of the justices of the peace. Parliament enforced with incredible severity the duty of the poor and able-bodied man to work. Sturdy idlers were arrested and drafted into the new proletariat needed by capital. When whipping, branding, and short terms of imprisonment, did not suffice to compel men to work, a law was passed to brand able-bodied vagrants on the chest with a "V," [Sidenote: 1547] and to assign them to some honest neighbor "to have and to hold as a slave for the space of two years then next following." The master should "only give him bread and water and small drink and such refuse of meat as he should think meet to cause the said slave to work." If the slave still idled, or if he ran away and was caught again he was to be marked on the face with an "S" and to be adjudged a slave for life. If finally refractory he was to be sentenced as a felon. This terrible measure, intended partly to reduce lawless vagrancy, partly to supply cheap labor to employers, failed of its purpose and was repealed in two years. Its re-enactment was vainly urged by Cecil upon Parliament in 1559. As a substitute for it in this year the law was passed forbidding masters to receive any workman without a testimonial from his last employer; laborers were not allowed to stop work or change employers without good cause, and conversely employers were forbidden to dismiss servants "unduly."
[Sidenote: The proletariat]
In Germany the features of the modern struggle between owners and workers are plainest. In mining, especially, there developed a real proletariat, a class of laborers seeking employment wherever it was best paid and combining and striking for higher wages. To combat them were formed pools of employers to keep down wages and to blacklist agitators. Typical of these was the agreement made by Duke George of {555} Saxony and other large mine-owners not to raise wages, [Sidenote: 1520] not to allow miners to go from place to place seeking work, and not to hire any troublesome agitator once dismissed by any operator.
It is extraordinary how rapidly many features of the modern proletariat developed. Take, for example, the housing problem. As this became acute some employers built model tenements for their workers. Others started stores at which they could buy food and clothing, and even paid them in part in goods instead of in money. Labor tended to become fluid, moving from one town to another and from one industry to another according to demand. Such a thing had been not unknown in the previous centuries; it was strongly opposed by law in the sixteenth. The new risks run by workers were brought out when, for the first time in history, a great mining accident took place in 1515, a flood by which eighty-eight miners were drowned. Women began to be employed in factories and were cruelly exploited. Most sickening of all, children were forced, as they still are in some places, to wear out their little lives in grinding toil. The lace-making industry in Belgium, for example, fell entirely into the hands of children. Far from protesting against this outrage, the law actually sanctioned it by the provision that no girl over twelve be allowed to make lace, lest the supply of maidservants be diminished.
[Sidenote: Strikes]
Strikes there were and rebellions of all sorts, every one of them beaten back by the forces of the government and of the capitalists combined. The kings of commerce were then, more than now, a timorous and violent race, for then they were conscious of being usurpers. When they saw a Münzer or a Kett—the mad Hamlets of the people—mop and mow and stage their deeds before the world, they became frantic with terror and could do nought but take subtle counsel to {556} kill these heirs, or pretenders, to their realms. The great rebellions are all that history now pays much attention to, but in reality the warfare on the poor was ceaseless, a chronic disease of the body politic. Louis XI spared nothing, disfranchisement, expulsion, wholesale execution, to beat down the lean and hungry conspirators against the public order, whose raucous cries of misery he detested. With somewhat gentler, because stronger, hand, his successors followed in his footsteps. But when needed the troops were there to support the rich. The great strike of printers at Lyons is one example of several in France. In the German mines there were occasional strikes, sternly suppressed by the princes acting in agreement.
[Sidenote: Degradation of the poor]
There can be no doubt that the economic developments of the sixteenth century worked tremendous hardship to the poor. It was noted everywhere that whereas wine and meat were common articles in 1500, they had become luxuries by 1600. Some scholars have even argued from this a diminution of the wealth of Europe during the century. This, however, was not the case. The aggregate of capital, if we may judge from many other indications, notably increased throughout the century. But it became more and more concentrated in a few hands.
The chief natural cause of the depression of the working class was the rise in prices. Wages have always shown themselves more sluggish in movement than commodities. While money wages, therefore, remained nearly stationary, real wages shrank throughout the century. In 1600 a French laborer was obliged to spend 55 per cent. of his wages merely on food. A whole day's labor would only buy him two and one half pounds of salt. Rents were low, because the houses were incredibly bad. At that time a year's rent for a laborer's tenement cost from ten to twenty {557} days labor; it now costs about thirty days' labor. The new commerce robbed the peasant of some of his markets by substituting foreign articles like indigo and cochineal for domestic farm products. The commercialization of agriculture worked manifold hardship to the peasant. Many were turned off their farms to make way for herds of sheep, and others were hired on new and harder terms to pay in money for the land they had once held on customary and not too oppressive terms of service and dues.
Under all the splendors of the Renaissance, with its fields of cloth of gold and its battles like knightly jousts, with its constant stream of adulation from artists and authors, with the ostentation of the new wealth and the greedily tasted pleasures of living and enjoying, an attentive ear can hear the low, uninterrupted murmurs of the wretched, destined to burst forth, on the day of despair or of vengeance, into ferocious clamors. [Sidenote: No pity for the poor] Nor was there then much pity for the poor. The charity and worship for "apostolic poverty" of the Middle Ages had ceased, nor had that social kindness, so characteristic of our own time that it is affected even by those who do not feel it, arisen. The rich and noble, absorbed in debauchery or art, regarded the peasant as a different race—"the ox without horns" they called him—to be cudgeled while he was tame and hunted like a wolf when he ran wild. Artists and men of letters ignored the very existence of the unlettered, with the superb Horatian, "I hate the vulgar crowd and I keep them off," or, if they were aroused for a moment by the noise of civil war merely remarked, with Erasmus, that any tyranny was better than that of the mob. Churchmen like Matthew Lang and Warham and the popes oppressed the poor whom Jesus loved. "Rustica gens optima flens" smartly observed a canon of Zurich, while Luther blurted out, {558} "accursed, thievish, murderous peasants" and "the gentle" Melanchthon almost sighed, "the ass will have blows and the people will be ruled by force."
There were, indeed, a few honorable exceptions to the prevalent callousness. "I praise thee, thou noble peasant," wrote an obscure German, "before all creatures and lords upon earth; the emperor must be thy equal." The little read epigrams of Euricius Cordus, a German humanist who was, by exception, also humane, denounce the blood-sucking of the peasants by their lords. Greatest of all, Sir Thomas More felt, not so much pity for the lot of the poor, as indignation at their wrongs. The Utopia will always remain one of the world's noblest books because it was almost the first to feel and to face the social problem.
[Sidenote: Pauperism]
This became urgent with the large increase of pauperism and vagrancy throughout the sixteenth century, the most distressing of the effects of the economic revolution. When life became too hard for the evicted tenant of a sheep-raising landlord, or for the déclassé journeyman of the town gild, he had little choice save to take to the road. Gangs of sturdy vagrants, led by and partly composed of old soldiers, wandered through Europe. But a little earlier than the sixteenth century that race of mendicants the Gipsies, made their debut. The word "rogue" was coined in England about 1550 to name the new class. The Book of Vagabonds, [Sidenote: 1510] written by Matthew Hütlin of Pfortzheim, describes twenty-eight varieties of beggars, exposes their tricks, and gives a vocabulary of their jargon. Some of these beggars are said to be dangerous, threatening the wayfarer or householder who will not pay them; others feign various diseases, or make artificial wounds and disfigurations to excite pity, or take a religious garb, or drag chains to show that they had escaped from galleys, or have other plausible tales of woe and {559} of adventure. All contemporaries testify to the alarming numbers of these men and women; how many they really were it is hard to say. It has been estimated that in 1500 20 per cent. of the population of Hamburg and 15 per cent. of the population of Augsburg were paupers. Under Elizabeth probably from a quarter to a third of the population of London were paupers, and the country districts were just as bad. Certain parts of Wales were believed to have a third of their population in vagabondage.
In the face of this appalling situation the medieval method of charity completely broke down. In fact, with its many begging friars, with its injunction of alms-giving as a good work most pleasing to God, and with its respect for voluntary poverty, the church rather aggravated than palliated the evil of mendicancy. The state had to step in to relieve the church.
[Sidenote: State poor-relief, 1506]
This was early done in the Netherlands. A severe edict was issued and repeatedly re-enacted against tramps ordering them to be whipped, have their heads shaved, and to be further punished with stocks. An enterprising group of humanists and lawyers demanded that the government should take over the duty of poor-relief from the church. Accordingly at Lille a "common chest" was started, the first civil charitable bureau in the Netherlands. [Sidenote: 1512] At Bruges a cloister was secularized and turned into a school for eight hundred poor children in uniform. A secular bureau of charity was started at Antwerp. [Sidenote: 1521]
Under these circumstances the humanist Lewis Vives wrote his famous tract on the relief of the poor, [Sidenote: January, 1526] in the form of a letter to the town council of Bruges. In this well thought out treatise he advocated the law that no one should eat who did not work, and urged that all able-bodied vagrants should be hired out to artisans—a suggestion how welcome to the capitalists eager to {560} draft men into their workshops! Cases of people unable to work should also be taken up, and they should be cared for by application of religious endowments by the government. Vives' claim to recognition lies even more in his spirit than in his definite program. For almost the first time in history he plainly said that poverty was a disgrace as well as a danger to the state and should be, not palliated, but extirpated.
While Vives was still preparing his treatise the city of Ypres [Sidenote: 1525] (tragic name!) had already sought his advice and acted upon it, as well as upon the example of earlier reforms in German cities, in promulgating an ordinance. The city government combined all religious and philanthropic endowments into one fund and appointed a committee to administer it, and to collect further gifts. These citizens were to visit the poor in their dwellings, to apply what relief was necessary, to meet twice a week to concert remedial measures and to have charge of enforcing the laws against begging and idleness. All children of the poor were sent to school or taught a trade.
Though there were sporadic examples of municipal poor-relief in Germany prior to the Reformation, it was the religious movement that there first gave the cause its decisive impulse. In his Address to the German Nobility Luther had recommended that each city should take care of its own poor and suppress "the rascally trade of begging." During his absence at the Wartburg his more radical colleagues had taken steps to put these ideas into practice at Wittenberg. A common fund was started by the application of ecclesiastical endowments, from which orphans were to be housed, students at school and university to be helped, poor girls dowered and needy workmen loaned money at four per cent. A severe law against begging was passed. Augsburg and Nuremberg followed the {561} example of Wittenberg almost at once [Sidenote: 1522] and other German cities, to the number of forty-eight, one by one joined the procession.
For fairly obvious reasons the state regulation of pauperism, though it did not originate in the Reformation, was much more rapidly and thoroughly developed in Protestant lands. In these the power of the state and the economic revolution attained their maximum development, whereas the Roman church was inclined, or obligated, to stand by the medieval position. "Alms-giving is papistry," said a Scotch tract. Thus Christian Cellarius, a professor at Louvain, published A Plea for the Right of the Poor to Beg. [Sidenote: 1530] The Spanish monk, Lawrence da Villavicenzio in his Sacred Economy of caring for the Poor, [Sidenote: 1564] condemned the whole plan of state regulation and subvention as heretical. The Council of Trent, also, put itself on the medieval side, and demanded the restoration to the church of the direction of charity.
[Sidenote: 1531]
But even in Catholic lands the new system made headway. As the
University of Paris approved the ordinance of Ypres, in France, and in
Catholic Germany, a plan comprising elements of the old order, but
informed by the modern spirit, grew up.
In England the problem of pauperism became more acute than elsewhere. The drastic measures taken to force men to work failed to supply all needs. After municipal relief of various sorts had been tried, and after the government had in vain tried to stimulate private munificence to co-operate with the church [Sidenote: 1572] to meet the growing need, the first compulsory Poor Rates were laid. Three or four years later came an act for setting the poor to labor in workhouses. These measures failed of the success that met the continental method. Even compared to Scotland, England developed a disproportionate amount of pauperism. Some {562} authorities have asserted that by giving the poor a legal right to aid she encouraged the demand for it. [Sidenote: 1572] Probably, however, she simply furnished the extreme example of the commercialism that made money but did not make men.
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