As regards Great Britain, the giant trader who has so long overshadowed Asiatic commerce, Lord Charles Beresford says: “But competition is telling adversely; the energy of the British merchant is being equalled by other nationals. . . The competition of the Chinese and the introduction of steam into the country are also combining to produce changed conditions in China.” But far more ominous is the plaintive note he sounds when he says: “New industries must be opened up, and I would especially direct the attention of the Chambers of Commerce (British) to . . . the fact that the more the native competes with the British manufacturer in certain classes of trade, the more machinery he will need, and the orders for such machinery will come to this country if our machinery manufacturers are enterprising enough.”
The Orient is beginning to show what an important factor it will become, under Western supervision, in the creation of surplus value. Even before the barriers which restrain Western capital are removed, the East will be in a fair way toward being exploited. An analysis of Lord Beresford’s message to the Chambers of Commerce discloses, first, that the East is beginning to manufacture for itself; and, second, that there is a promise of keen competition in the West for the privilege of selling the required machinery. The inexorable query arises: What is the West to do when it has furnished this machinery? And when not only the East, but all the now undeveloped countries, confront, with surplus products in their hands, the old industrial nations, capitalistic production will have attained its maximum development.
But before that time must intervene a period which bids one pause for breath. A new romance, like unto none in all the past, the economic romance, will be born. For the dazzling prize of world-empire will the nations of the earth go up in harness. Powers will rise and fall, and mighty coalitions shape and dissolve in the swift whirl of events. Vassal nations and subject territories will be bandied back and forth like so many articles of trade. And with the inevitable displacement of economic centres, it is fair to presume that populations will shift to and fro, as they once did from the South to the North of England on the rise of the factory towns, or from the Old World to the New. Colossal enterprises will be projected and carried through, and combinations of capital and federations of labor be effected on a cyclopean scale. Concentration and organization will be perfected in ways hitherto undreamed. The nation which would keep its head above the tide must accurately adjust supply to demand, and eliminate waste to the last least particle. Standards of living will most likely descend for millions of people. With the increase of capital, the competition for safe investments, and the consequent fall of the interest rate, the principal which today earns a comfortable income would not then support a bare existence. Saving toward old age would cease among the working classes. And as the merchant cities of Italy crashed when trade slipped from their hands on the discovery of the new route to the Indies by way of the Cape of Good Hope, so will there come times of trembling for such nations as have failed to grasp the prize of world-empire. In that given direction they will have attained their maximum development, before the whole world, in the same direction, has attained its. There will no longer be room for them. But if they can survive the shock of being flung out of the world’s industrial orbit, a change in direction may then be easily effected. That the decadent and barbarous peoples will be crushed is a fair presumption; likewise that the stronger breeds will survive, entering upon the transition stage to which all the world must ultimately come.
This change of direction must be either toward industrial oligarchies or socialism. Either the functions of private corporations will increase till they absorb the central government, or the functions of government will increase till it absorbs the corporations. Much may be said on the chance of the oligarchy. Should an old manufacturing nation lose its foreign trade, it is safe to predict that a strong effort would be made to build a socialistic government, but it does not follow that this effort would be successful. With the moneyed class controlling the State and its revenues and all the means of subsistence, and guarding its own interests with jealous care, it is not at all impossible that a strong curb could be put upon the masses till the crisis were past. It has been done before. There is no reason why it should not be done again. At the close of the last century, such a movement was crushed by its own folly and immaturity. In 1871 the soldiers of the economic rulers stamped out, root and branch, a whole generation of militant socialists.
Once the crisis were past, the ruling class, still holding the curb in order to make itself more secure, would proceed to readjust things and to balance consumption with production. Having a monopoly of the safe investments, the great masses of unremunerative capital would be directed, not to the production of more surplus value, but to the making of permanent improvements, which would give employment to the people, and make them content with the new order of things. Highways, parks, public buildings, monuments, could be builded; nor would it be out of place to give better factories and homes to the workers. Such in itself would be socialistic, save that it would be done by the oligarchs, a class apart. With the interest rate down to zero, and no field for the investment of sporadic capital, savings among the people would utterly cease, and old-age pensions be granted as a matter of course. It is also a logical necessity of such a system that, when the population began to press against the means of subsistence, (expansion being impossible), the birth rate of the lower classes would be lessened. Whether by their own initiative, or by the interference of the rulers, it would have to be done, and it would be done. In other words, the oligarchy would mean the capitalization of labor and the enslavement of the whole population. But it would be a fairer, juster form of slavery than any the world has yet seen. The per capita wage and consumption would be increased, and, with a stringent control of the birth rate, there is no reason why such a country should not be so ruled through many generations.
On the other hand, as the capitalistic exploitation of the planet approaches its maximum, and countries are crowded out of the field of foreign exchanges, there is a large likelihood that their change in direction will be toward socialism. Were the theory of collective ownership and operation then to arise for the first time, such a movement would stand small chance of success. But such is not the case. The doctrine of socialism has flourished and grown throughout the nineteenth century; its tenets have been preached wherever the interests of labor and capital have clashed; and it has received exemplification time and again by the State’s assumption of functions which had always belonged solely to the individual.
When capitalistic production has attained its maximum development, it must confront a dividing of the ways; and the strength of capital on the one hand, and the education and wisdom of the workers on the other, will determine which path society is to travel. It is possible, considering the inertia of the masses, that the whole world might in time come to be dominated by a group of industrial oligarchies, or by one great oligarchy, but it is not probable. That sporadic oligarchies may flourish for definite periods of time is highly possible; that they may continue to do so is as highly improbable. The procession of the ages has marked not only the rise of man, but the rise of the common man. From the chattel slave, or the serf chained to the soil, to the highest seats in modern society, he has risen, rung by rung, amid the crumbling of the divine right of kings and the crash of falling sceptres. That he has done this, only in the end to pass into the perpetual slavery of the industrial oligarch, is something at which his whole past cries in protest. The common man is worthy of a better future, or else he is not worthy of his past.
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Note.—The above article was written as long ago as 1898. The only alteration has been the bringing up to 1900 of a few of its statistics. As a commercial venture of an author, it has an interesting history. It was promptly accepted by one of the leading magazines and paid for. The editor confessed that it was “one of those articles one could not possibly let go of after it was once in his possession.” Publication was voluntarily promised to be immediate. Then the editor became afraid of its too radical nature, forfeited the sum paid for it, and did not publish it. Nor, offered far and wide, could any other editor of bourgeois periodicals be found who was rash enough to publish it. Thus, for the first time, after seven years, it appears in print.