Money! Then what is money?
It is answered, money represents labour. I meet educated people who even assert that money represents labour performed by those who possess it. I confess that I myself formerly shared this opinion, although I did not very clearly understand it. But now it became necessary for me to learn thoroughly what money is.
In order to do so, I addressed myself to science. Science says that money in itself is neither unjust nor pernicious; that money is the natural result of the conditions of social life, and is indispensable, first, for convenience of exchange; secondly, as a measure of value; thirdly, for saving; and fourthly, for payments.
The fact that when I have in my pocket three rubles to spare, which I am not in need of, I have only to whistle and in every civilized town I can obtain a hundred people ready for these three rubles to do the worst, most disgusting, and humiliating act I require, it is said, comes not from money, but from the very complicated conditions of the economical life of nations!
The dominion of one man over others does not come from money, but from the circumstance that a workingman does not receive the full value of his labour; and the fact that he does not get the full value of his labour depends upon the nature of capital, rent, and wages, and upon complicated connections between the distribution and consumption of wealth.
In plain language, it means that people who have money may twist round their finger those who have none. But science says that this is an illusion; that in every kind of production three factors take part,—land, savings of labour (capital), and labour, and that the dominion of the few over the many proceeds from the various connections between these factors of production, because the two first factors, land and capital, are not in the hands of working people; and from this fact and from the various combinations which result from it this domination proceeds.
Whence comes the great power of money, which strikes us all with a sense of its injustice and cruelty? Why is one man, by the means of money, to have dominion over others? Science says, “It comes from the division of the factors of production, and from the consequent combinations which oppress the worker.”
This answer has always appeared to me to be strange, not only because it leaves one part of the question unnoticed (namely, the significance of money), but also because of the division of the factors of production, which to an unprejudiced man will always appear artificial and out of touch with reality. Science asserts that in every production three agents come into operation,—land, capital and labour; and along with this division it is understood that property (or its value in money) is naturally divided among those who possess one of these agents; thus, rent (the value of the ground) belongs to the land-owner; interest belongs to the capitalist; and wages to the worker.
Is this really so?
First, is it true that in every production only three agencies operate? Now, while I am writing proceeds the production of hay around me. Of what is this production composed? I am told of the land which produces the grass; of capital (scythes, rakes, pitch-forks, carts which are necessary for the housing of the hay); and of labour. But I see that this is not true. Besides the land, there is the sun and rain; and, in addition, social order, which has been keeping these meadows from any damage which might be caused by letting stray cattle graze upon them, the skill of workmen, their knowledge of language, and many other agencies of production,—which, for some unknown reason, are not taken into consideration by political economy.