There is one other way in which immigration, as it exists at present, influences crises. In considering this, it will be well to regard the crisis from the other point of view—as a phenomenon of underconsumption. Practically all production at the present day is to supply an anticipated future demand. There can be no overproduction unless the actual demand fails to equal that anticipated. This is underconsumption. Now the great mass of consumers in the United States is composed of wage earners. Their consuming power depends upon their wages. In so far as immigration lowers wages in the United States, or prevents them from rising, it reduces consuming power, and hence is favorable to the recurrence of periods of underconsumption. It is not probable, to be sure, that a high wage scale in itself could prevent crises, as the entrepreneurs would base their calculations on the corresponding consuming power, just as they do at present. But a high wage scale carries with it the possibility of saving, and an increase of accumulations among the common people. It is estimated at the present time that half of the industrial people of the United States are unable to save anything.[[324]] This increase in saving would almost inevitably have some effect upon the results of crises, though it must be confessed that it is very difficult to predict just what this effect would be. One result that might naturally be expected to follow would be that the laboring classes would take the opportunity of the period of low prices immediately following the crisis to invest some of their savings in luxuries which hitherto they had not felt able to afford. This would increase the demand for the goods which manufacturers are eager to dispose of at almost any price, and would thereby mitigate the evils of the depressed market. It is probably true that the immigrant, under the same conditions, will save more out of a given wage than the native, so that it might seem that an alien laboring body would have more surplus available for use at the time of a crisis than a native class. But the immigrant sends a very large proportion of his savings to friends and relatives in the old country, or deposits it in foreign institutions, so that it is not available at such a time. Moreover, our laboring class is not as yet wholly foreign, and the native has to share approximately the same wage as the alien. Without the immense body of alien labor, we should have a class of native workers with a considerably higher wage scale, and a large amount of savings accumulated in this country, and available when needed.
On the other hand, it may be argued that if the desire to purchase goods in a depressed market should lead to a large withdrawal of cash from savings banks and similar institutions, it might tend to augment rather than alleviate the evils of a money stringency. There seems to be much force to this argument. Yet Mr. Streightoff tells us that in a period of hard times the tendency is for the poorer classes to increase their deposits, rather than diminish them.[[325]] On the whole, it seems probable that a large amount of accumulated savings in the hands of the poorer classes would tend to have a steadying influence on conditions at the time of a crisis, and that by preventing this, as well as in other ways, immigration tends to increase the evils of crises.
In closing this discussion, it may be interesting to note what are the elements in our alien population which respond most readily to economic influences in this country, and hence are mainly accountable for the influences we have been considering. As stated above, the annual reports of the Commissioner General of Immigration give very complete data as to the make-up of the incoming and outgoing streams by years. Thus in the fiscal year 1908 there were 782,870 immigrant aliens and 141,825 nonimmigrant aliens admitted. Of the nonimmigrant aliens, 86,570 were individuals whose country of last permanent residence and of intended future residence were both the United States; that is, they were alien residents of this country who had been abroad for a brief visit. These are the birds of passage in the strictest sense, in which we shall use the term hereafter. In the same year there was a total exodus of 714,828 aliens, of whom 395,073 were emigrants and 319,755 nonemigrants. The former class includes those who have made their fortune in this country and are going home to spend it, and those who have failed, and are going home broken and discouraged—a very large number in this panic year. The latter class includes aliens who have had a permanent residence in the United States, but who are going abroad to wait till the storm blows over, with the expectation of returning again—true birds of passage outward bound. There were 133,251 of these. The balance were aliens in transit, and aliens who had been in this country on a visit, or only for a short time. In 1909 there were 751,786 immigrant aliens and 192,449 nonimmigrant aliens. Of the nonimmigrants 138,680 were true birds of passage according to the above distinction—a large number and almost exactly equal to the number of departing birds of passage in the previous year. The storm is over, and they have come back. The departures in that year numbered 225,802 emigrant and 174,590 nonemigrant aliens. These numbers are considerably smaller than in the previous year, but are still large, showing that the effects of the crisis were still felt in the early part of this fiscal year. The number of birds of passage among the nonemigrant aliens, 80,151, is much smaller than in the previous year. In 1910 there were 1,041,570 immigrant aliens and 156,467 nonimmigrant aliens. In the latter class, the number of birds of passage, 94,075, again approximated the corresponding class among the departures of the previous year. The departures in 1910 were 202,436 emigrant aliens and 177,982 nonemigrant aliens, of whom 89,754 were birds of passage. This probably comes near to representing the normal number of this class. A careful study of these figures confirms the conclusion reached above. While a crisis in this country does undoubtedly increase the number of departing aliens, both emigrant and nonemigrant, and eventually cuts down the number of arrivals, the total effect is much smaller than is usually supposed, and taken in connection with the fact that the stream of arrivals is never wholly checked, the influence of emigration in easing the labor market is absolutely trifling.
Comparing the different races in regard to their readiness to respond to changes in economic conditions, it appears that the Italians stand easily at the head, and the Slavs come second. In 1908, in the traffic between the United States and Italy, there was a net loss in the population of this country of 79,966; in 1909 a net gain of 94,806. In the traffic between this country and Austria-Hungary there was a loss in 1908 of 5463; in 1909 a gain of 48,763. In the traffic with the Russian Empire and Finland there was a gain of 104,641 in 1908 and a gain of 94,806 in 1909. This shows how unique are the motives and conditions which control the emigration from the two latter countries. The emigrants from there, particularly the Jews, come to this country to escape intolerable conditions on the other side, not merely for the sake of economic betterment. They prefer to endure anything in this country, rather than to return to their old home, even if they could.
Hand in hand with the economic disparity caused by immigration has come an increasing social stratification.[[326]] This is based partly on wealth, partly on race. Already certain occupations are regarded as the special province of certain nationalities, and native parents recoil from the prospect of having their children enter them to work side by side with the aliens. Only the beginnings of these changes are as yet manifest, and no one can foretell what the outcome will be. But even the beginnings must give us pause. There can be no more pernicious social classification in a nation than one based on race. Distinctions resting on wealth, religion, or education can be overcome, potentially at least. Distinctions of birth affect only a small proportion of a society, and exist only in nations long habituated to them. But distinctions of race affect the entire population are fundamental, and can never be obliterated except as assimilation is so perfect that race is forgotten. No effort of the individual can blot out his racial identification. The most familiar example yet developed in the United States is that of the Hebrews. However sincerely we may admire their fine racial traits, however closely we may associate with individuals of the race, we cannot deny that they constitute a separate body in our population in many respects.[[327]] Summer hotels are closed to them, or else other people avoid those resorts. Americans move out of the sections of cities where they are moving in. Select clubs are closed to them. It is an indictment against the American people that these things are so. We, who pose as the friends of all races, however downtrodden and despised, should be ready to take them into equality with us when they seek refuge on our shores. Both Hebrews and Americans may resent the bald statement of such facts. Can we deny their truth?
Nor is it only in high society, nor only among Americans, that this friction is felt. In the slums of our cities bitter feeling exists between the Italians and the Jews.[[328]] Nor is racial antagonism confined to any two or three races.[[329]] Employers of labor find it wholly expedient to arrange their workers in groups of the same nationality.[[330]] Austria-Hungary is an example of the conditions that may result when too many jarring nationalities are included within a national territory. But the racial groups in Austria-Hungary do not compare in diversity with those which are gradually forming in the United States.
In the political aspects of the immigration situation there has been a peculiar reversal of public opinion in the last three quarters of a century. In the days of the Native Americans and the Know nothings, the uneasiness was mainly due to the fear that too many aliens would acquire the rights of citizenship. Then it was the naturalized foreigner who was the undesirable. Nowadays, the fear is that the foreigners will ignore the privileges of citizenship, and a high percentage of naturalization is a test of desirability in any foreign group. This change may be attributed to a change in the situation of the United States, and to a difference in the character and causes of immigration. During the first half of the nineteenth century the United States was essentially a new country. Political questions were predominant, and the memory of the men who fell in the fight for freedom was still fresh in the minds of their sons. The immigrants of the period, on the other hand, were actuated to a large extent by the desire for political freedom, and were keen to secure all the power possible in this country. At the present time, the predominating interests are wholly economic, and even the political questions of the day have an economic flavor. At the same time, the motives of the immigrants are almost wholly economic. So the jealousy between native and foreigner now concerns itself mainly with the industrial relations, and anything which indicates an inclination on the part of the alien to ally himself permanently with the interests of the country is welcomed. The temporary immigrant was an almost unknown quantity in the old days.
The naturalization laws of the United States have undergone only slight modifications in the past hundred years.[[331]] The main provisions of the present laws are as follows: In order to become a citizen of the United States an alien must follow out the following method of procedure: At least two years before he is admitted he must file a preliminary declaration of intention. To do this he must be at least eighteen years old. This declaration shall state that it is his bona-fide intention to become a citizen of the United States, and to renounce all other allegiance to a foreign power, and shall set forth his name, age, occupation, personal description, place of birth, last foreign residence and allegiance, date of arrival in the United States, name of the vessel, if any, by which he came, and present place of residence in the United States. Not less than two years nor more than seven years after he has made application, he shall present a petition in writing, signed in his own handwriting, stating the essential facts about himself, including his declaration of allegiance to the United States, and disclaiming belief in anarchy, or belief in or practice of polygamy.
This petition shall be verified by at least two credible witnesses, who are citizens of the United States, who shall state that they have known the applicant to be a resident of the United States for a period of at least five years continuously, and of the state or territory at least one year immediately preceding, and that they have personal knowledge of his good moral character and general fitness to become a citizen of the United States.
With this petition is filed a certificate from the Department of Commerce and Labor, stating the date, place, and manner of his arrival, and also his declaration of intention. He shall swear in open court his allegiance to the United States and renounce all other allegiance.