If what has just been said is sound it would be necessary, in order to understand contemporary values, to investigate, historically and psychologically, the ideals, such as they are, now prevalent in the richer classes.[[71]] It might be found, perhaps, that these are largely of two sorts: ideals proper to commercialism—especially ideals of pecuniary power and of display as an evidence of it—and caste ideals taken over by the commercial aristocracy from an older order of society. Commercialism tends to fix attention rather on the acquisition than the use of wealth, and for ideals regarding the latter the successful class has fallen back upon the traditions, so well-knit and so attractive to the imagination, of a former hereditary aristocracy. We very inadequately realize, I imagine, how much our modes of thought, and hence our valuations, are dominated by English social ideals of the seventeenth and eighteenth centuries. We get these not only through the social prestige, continuous to our own day, of the English upper classes, but through history, literature, and art. Speaking roughly, the best European literature, and especially the best English literature, was produced under the dominance of an aristocratic class and is permeated with its ideals. Thus culture, even now, means in no small degree the absorption of these ideals.
They are, of course, in many respects high ideals, embracing conceptions of personal character, culture and conduct which it would be a calamity to lose; and yet these are interwoven with the postulate of an upper class, enjoying of right an enormous preponderance of wealth and power, and living in an affluence suitable to its appointed station. Thus it happens that as a man acquires wealth he feels that it is becoming that his family should assert its right of membership in the upper class by a style of living that shall proclaim his opulence. He also feels, if he has in any degree assimilated the finer part of the tradition, that a corresponding advance in culture would be becoming to him, but this is a thing by no means so readily purchased as material state; the general conditions are not favorable to it, and his efforts, if he makes any, are apt to be somewhat abortive.
Along with the preceding we have also a hopeful admixture of ideals which reflect the dawn of a truly democratic régime of life—ideals of the individual as existing for the whole, of power as justified only by public service, compunctions regarding the inequalities of wealth and opportunity, a lowly spirit in high places.
This sort of inquiry into the psychology of the upper class as a social organism—however unimportant these suggestions may be—appears to be indispensable if we are to form even an intelligent guess as to where we stand in the matter of valuation.
Coming now to the control over values incident to the administration of the business system, we note that the class in power, in spite of constant changes in its membership, is for many purposes a real historical organism acting collectively for its own aggrandizement. This collective action is for the most part unconscious, and comes about as the resultant of the striving of many individuals and small groups in the same general direction. We are all, especially in pecuniary matters, ready to join forces with those whose interest is parallel to our own: bankers unite to promote the banking interest, manufacturers form associations, and so on. The whole business world is a network of associations, formal and informal, which aim to further the pecuniary interest of the members. And while these groups, or members of the same group, are often in competition with one another, this does not prevent a general parallelism of effort as regards matters which concern the interest of the business class as a whole. The larger the group the less conscious, as a rule, is its co-operation, but it is not necessarily less effective and it can hardly be denied that the capitalist-manager class, or whatever we may call the class ascendant in business, acts powerfully as a body in maintaining and increasing its advantages over other classes. Nothing else can result from the desire of each to get and keep all he can, and to exchange aid with others similarly inclined.[[72]]
When I say that the class is, for this purpose, a historical organism, I mean that its power, prestige, and methods come down from the past in a continuous development like other forms of social life. This would be the case even were individual membership in it quite free to every one in proportion to his ability, for an open class, as we can see, for instance, in the case of a priesthood, may yet be full of a spirit and power derived from the past.
In fact, however, membership in the upper economic class is by no means open to all in proportion to natural ability, and the command it enjoys of lucrative opportunities contributes greatly to its ascendancy. It controls the actual administration of the market much as the political party in power used to control the offices, with the influence and patronage pertaining to them—only the ascendancy in the economic world, based largely on inherited wealth and connections, is greater and more secure. The immediate effect of this is to enhance greatly the market value of the persons having access to the opportunities: they are enabled by their advantageous position to draw from the common store salaries, fees, and profits not at all explicable by natural ability alone. This effect is multiplied by the fact that limitation of the number of competitors gives an additional scarcity value to the services of the competent, which may raise their price almost incredibly. Thus it is well known that during the period of rapid consolidation of the great industries enormous fees, amounting in some cases to millions, were paid to those who effected the consolidations. It may be that their services were worth the price; but in so far as this is the fact it can be explained only as an exorbitant scarcity value due to limitation of opportunity. No one will contend, I suppose, that the native ability required was of so transcendent a character as to get such a reward under open conditions. Evidently of the thousands who might have been competent to the service only a few were on hand with such training and connections as to make them actual competitors. And the same principle is quite generally required to explain the relatively large incomes of the class in power, including those of the more lucrative professions. They represent the value of good natural ability multiplied by opportunity factors.[[73]]
The fact usually urged in this connection, that these lucrative opportunities often fall to those who were not born in the upper class but have made their way into it by their own energy, is not very much to the point. It is not contended that our upper class is a closed caste, nor does it have to be in order to act as a whole, or to exercise a dominating and somewhat monopolistic influence over values. Though ill defined, not undemocratic in sentiment, and partly free from the hereditary character of European upper classes, it is yet a true historical successor of the latter, and dominates the weaker classes in much the same way as stronger classes have always done. Power is concentrated about the functions of the dominant institutions, and the powerful class use it, consciously or otherwise, for their individual and class advantage. Surely one has only to open his eyes to see this. I doubt whether there is a city, village, or township in the country where there is not a group of men who constitute an upper class in this sense. There is, it seems to me, a growing feeling that class, which the prevalent economics has relegated to oblivion under some such category as “imperfect freedom of competition,” is in fact at the very heart of our problem.
It appears, then, that pecuniary valuation is a social institution no less than the state or the church, and that its development must be studied not only on the impersonal side but also in the traditions and organization of the class that chiefly administers it.