The growing economic solidarity of classes tends in the same direction. We hear it said with equal confidence that the interests of capital and labor are opposed, and that they are the same. The solution, of course, is that both statements are true. The two have a common interest in the prosperity and stability of industry, and are mutually dependent upon each other’s efficiency and fair dealing. At the same time there is a real conflict of pecuniary interest as to the division of the product. In general the solidarity and interdependence increase as industries become more extensive and intricate, and require more intelligent and harmonious co-operation. It is also increased by the diffusion of investment, thrifty wage-earners becoming, to a large and increasing degree, small capitalists as well. The outcome is an organic whole which does not exclude opposition, but tends to limit it to what is functional, and to bring it under the control of rule.

Under such conditions the relation between economic classes—capital and labor, let us say, for simplicity—is that of two parties to a bargain so advantageous for both that neither can afford to throw it up, but whose precise terms are matter for controversy. Each side may have a motive for disputing, for feeling out the other’s position, even for temporarily refusing to trade, but not for going to extremes. Neither can afford to push the other to desperation. Capital could starve out labor, and labor could wreck the whole system, but in either case it would be suicidal to do so.

The orderly development of industrial life calls for an organization of process analogous to that of political democracy; that is, one providing regular methods for investigation, discussion, conflict, decision, and tentative advance on the chosen course. Disputes between capital and labor are normal, and it should be part of our system to arrange for their development and solution with the least possible misunderstanding, hostility, and economic waste. Small differences may be aired and adjusted before a permanent committee made up from both parties, while more serious differences, involving principles, after being formulated by each side, may be precisely and thoroughly investigated by a public agency in which both sides have confidence, in order that the situation may be clearly seen and agreement reached, if possible. And where struggle proves inevitable it should take place under public control and in accordance with rules expressing the paramount ideal of a common service. I understand something of this kind to be the programme of competent students of the labor problem; and there is the same need of regular process on all lines of growth.

There is every reason, in the United States at least, to anticipate not a class war but a continuance of the comparatively mild reconnoissances and skirmishes that have long marked industrial conflicts—whether they are carried into politics or remain purely industrial. The function of these light engagements is to determine approximately the strength of the parties in view of the whole economic, social, and moral situation, and so to establish a modus vivendi. Violent or reactionary methods, or any others not adapted to the general situation, will fail.

We may expect gradual but continuous progress in the direction of ideals of social justice. Such ideals, as they are diffused, tried out, and adapted, tend to become standards to which controversies are referred. They are neither purely humanitarian nor purely economic, but represent a working compromise between the two.

The total-cleavage theory of economic classes is taken most seriously in Europe, owing to the fact that European classes are largely castes, an inheritance from an older order, which actually do embrace almost the whole being of the member; and also to repressive methods and the comparative absence of democracy. It would be hard, I imagine, to find an American writer of equal weight who would assent to the assertion of the German economic historian, Karl Bücher, that “all modern industrial development tends in the direction of producing a permanent laboring class ... which in future will doubtless be as firmly attached to the factory as were the servile laborers of the mediæval manor to the glebe.”[[62]] I think that the division into two classes is on the whole diminishing, and that while the society of the future will not be classless, its classes will be mainly functional groups, increasingly open to all through a democratic and selective system of education. Class consciousness, however, is desirable, within limits, as a means to the diminution of privilege, which still exists in great power and can scarcely be overcome except as it is understood.

The question of race differs from that of nationality or of social class in that it supposes a division among men springing not merely from differences in history, environment, and culture, but rooted in their biological nature.

Of such a hereditary division we have almost no definite knowledge, except as regards the somewhat superficial traits of color and physiognomy. It is even possible to doubt whether there is any important innate psychical difference among the several branches of mankind. It is certain that different spirits are to be found in different races, that there is a deep and ancient unlikeness in the whole inner life of the Japanese, for example, and of the English. But the same is true of peoples like the English and German, who are not of distinct races. In other words, a group soul, a special ethos or mores, is the sure result of historical causes acting for centuries in a social system; so that different souls will exist whether the race is different or not. And as race differences, when present, are always accompanied by historical differences, it is not possible to make out just how much is due to them alone.

Many of us, to be sure, feel that the judgment of common sense, however incapable of demonstration, shows us unlikenesses of temperament and capacity, between Negroes and whites, for example, that cannot altogether be accounted for by influences acting after birth. Admitting that color is unimportant, the divergence in cranial and facial type may reasonably be supposed to mean something, however unfair may be their interpretation by white people.

It would be strange, reasoning from general principles, if races which have been bred apart for thousands of years and, in some cases, have become so different physically, should remain just alike as to innate mental traits. Surely it is not in accordance with what we know of heredity to suppose that millenniums of growth and adaptation in different environments have no effect upon this most plastic part of the organism. Or why should races be presumed equal in mental and moral capacity when family stocks in the same race are so evidently unequal in these respects?