As regards the profit obtained by the intermediate party, it is easily explained and justified. The assured remain associated for the purpose of repairing accidents and making good what is lost. But a company has stepped in which offers them the following advantages: 1st, It takes away whatever of uncertainty remained in the position of the assured; 2dly, It frees them from all care and trouble in connexion with accidents. These are services, and the rule is, service for service. The proof that the intervention of the company is a service possessed of value is to be found in the fact that it is freely accepted and paid for. The Socialists only make themselves ridiculous when they declaim against such middlemen. Do they intrude themselves into commercial transactions by force? Have they any other means of introducing themselves and their services than by saying to the parties with whom they deal, “I will cost you some trouble, but I will save you more?” How, then, can they be called parasites or even intermediaries?
I affirm, moreover, that association thus transformed is on the direct road of progress in every sense.
In fact, companies which expect to realize profits proportioned to the extent of their business, promote insurances. To aid them in this they have agents in all quarters, they establish credits, they devise a thousand combinations to increase the number of the assured—in other words, of the associated parties. They undertake a multitude of risks which were unknown to the primitive mutual insurance associations. In short, association is extended progressively to a greater number of men and things. In proportion as this development takes place, the companies find they can lower their prices; they are even forced by competition to do so. And here we again get a glimpse of the great law, that profit soon escapes from the hands of the producer to settle in those of the consumer.
Nor is this all: companies insure each other by reassurances, so that, with a view to providing for losses, which is the principal object in view, a thousand associations scattered over England, France, Germany, and America, are melted into one grand and unique association. And what is the result? If a house is burnt down at Bordeaux, Paris, or elsewhere, the proprietors of the whole world, English, Belgians, Germans, Spaniards, club together and repair the disaster.
This is an example of the degree of power, universality, and perfection, which may be reached by means of free and voluntary [p357] association. But to attain this they must be left free to manage their own business. Now, what happened when the Socialists, those great partisans of association, were in power? Their chief business was to threaten association in every form, and principally association for insurance. And why? Just because, in order to render itself more universal, it adopted those expedients which left each of its members in a state of independence. How little these unfortunate Socialists understand the social mechanism! They would bring us back to the rude and primitive forms which association assumed when society was in its infancy, and they would suppress all progress under the pretext that it has departed from these forms.
We shall see, by-and-by, that from the same prejudices, the same ignorance, arise their incessant declamations against interest. The interest and wages are fixed, and, consequently, improved forms of remuneration for the use of labour and capital.
The wages-system [salariat] has been peculiarly the butt of the Socialists. They have almost gone the length of representing it as a modified, and not greatly modified, system of slavery and thraldom. At all events, they see in it only a bargain which is one-sided and leonine, founded on liberty merely in appearance, an oppression of the weak by the strong, or the tyranny of capital over labour.
Continually wrangling about new institutions to be founded, the Socialists display in their common hatred of existing institutions, and especially of the system of remuneration by wages, a striking unanimity. If they cannot attain unity as to the new social organization to be established, they are at least marvellously united in calumniating, decrying, running down, hating, and making hated, everything which actually exists. I have assigned the reason for this elsewhere.[76]
Much unfortunately takes place which is beyond the domain of philosophical discussion; and the Socialist propaganda, seconded by an ignorant and cowardly press, which, without avowing Socialism, seeks for popularity in fashionable declamations, has succeeded in instilling hatred of the wages-system into the minds of the very people who live by wages. Workmen have become disgusted with this form of remuneration. It appears to them unjust, humiliating, and odious. They think it brands them with the mark of servitude. They desire to participate on another principle in the distribution of wealth. Hence they have fallen passionately in love with the most extravagant Utopias. They had but one [p358] step to take, and they have taken it. When the revolution of February broke out, the grand object of the working classes was to get rid of wages. Upon the means of accomplishing this they consulted their oracles; but when these oracles did not remain mute, they followed the usual mode by giving obscure utterances, in which the word which predominated was association, as if association and wages were incompatible. Then the workmen would try all the forms of this liberty-giving association; and, to impart to it greater attraction, they were pleased to invest it with all the charms of Solidarity, and attributed to it all the merits of Fraternity. For the moment, one would have been led to believe that the human heart itself had been about to undergo a grand transformation, and to throw off the yoke of self-interest, in order to give place to the principle of sympathy. By a singular contradiction, they hoped from association to reap at once all the glory of self-sacrifice, and material profits of hitherto unheard-of amount. They fell down before the statue of Fortune, prayed, and decreed to themselves the glory of martyrdom. It seemed as if these workmen, thus misled, and on the point of being seduced into a career of injustice, felt it necessary to shut their eyes to their true position, to glorify the methods of spoliation which had been taught them by their apostles, and place them covered with a veil in the sanctuary of a new revelation. Never, perhaps, had so many and such dangerous errors, so many and such gross contradictions, found their way before into the human brain.
Let us inquire, then, what wages really are, and consider their origin, form, and effects. Let us trace the subject to its foundation, and make sure whether, in the development of humanity, wages constitute retrogression or progress—whether in receiving wages there be anything humiliating or degrading, or which can in any degree be allied with slavery.