The Lunarian Professor and His Remarkable Revelations Concerning the Earth, the Moon and Mars / Together with An Account of the Cruise of the Sally Ann

by James B. Alexander

“The silver “dollar” with its fractions, half quarter and dime was coined in quantities to accommodate the business. Silver was made a legal tender for limited amounts. This gave silver the character of “fiat money,” or money that is legal and current at inflated values. They made gold the standard of value. In this they were right. There could logically be only one unit of value. But the debtor class strenuously opposed the plan. They said it worked great injustice to them, because their debts were contracted at times when money bore inflated values; when for example silver was intrinsically worth only half as much as gold. These debts were therefore now payable in money twice as valuable and twice as hard to get as that for which they had gone into debt. In other words they paid back twice as much as they fairly owed and the creditor received twice as much as he fairly loaned. There can be no doubt this is true of debts of long standing. But most debts were not affected materially by the rise in the value of gold, because they were not contracted at its bottom value, but at various grades of value while it was on the ascending movement. However as long as it was rising the creditor class was reaping an unjust advantage over the debtors. The government issued bank notes; some based on silver and some on gold; each kind redeemable in the metal on which it was based. The quantity of this paper money was regulated by the national legislature so as to insure a circulation in proportion to the volume of business. The extended use of bank checks has furnished a substitute for or supplement to the currency. When the currency question was finally felt to be settled, the conditions were practically accepted and the producing class was set to work, and in an incredibly short time, replaced the wealth that had been abstracted from them and more. Then came an era of speculation and the scattering of wealth. Obligations rashly incurred in flush times, had to be met when times became tight. This led to panics and the whole routine had to be repeated about so often. But panics could not be entirely eliminated by doctoring the currency, because currency is not the only factor. No matter how much currency a man has, he is not likely to buy articles he does not want. If mechanics have spent their time in the production of something the public do not require or a surplus of what they do ordinarily require, there will be difficulty in disposing of the product. If two classes of mechanics each make things with the expectation of selling them to the other class, and they turn out to be such things as are not wanted in either case, there is sure to be stagnation of exchange and consequent suffering. Where all are working in ignorance of the requirements of others there are sure to be produced many things for which there will be no demand. This had been partially recognized by the government in your day and commissioners were appointed to collect statistics and make estimates in regard to the production of and probable demand for certain farm products. As the government became more intimately the servant of the people its services in this direction were greatly extended and inquiries covered many other departments beside that of farming. The government itself became a large consumer in operating its railroads, telegraphs, etc. Additional mileage had to be constructed to meet the growing business besides the renewals on account of wear and tear. By the publication in advance of the probable demands on the various sorts of industry it became possible to estimate approximately what amount of and what kind of product could be disposed of. A still more fruitful source of financial trouble was to be found in the spirit of recklessness and extravagance with which people spent their money when times were prosperous or booming. It seemed so easy then to get money and to pay debts that many thought it hardly worth while to do it, if there appeared a chance for a profitable speculation, and so instead of paying old debts they were very likely to incur fresh ones. But as the state became more and more involved in business affairs, it was able to advise what products would be in demand, when it was advisable to use caution and economy and when activity would be rewarded. The functions of the state as a medium of exchange between the producer and the consumer became rapidly extended, and before the close of the century it became the chief and in many things the only buyer and seller of the products in most common use, as well as the sole factor in all monopolies and in banking, insurance, and public amusements. It had not yet gone into manufacturing or farming except to the extent necessary to prevent combinations and private monopolies.”

“I think I can see the advantage of this,” said I, “they probably held to the principle that competition is necessary to keep men up to their best in exertion and industry.”

“That is correct,” he replied, “until work becomes an instinct it is necessary to stimulate exertion by the better rewards that extra industry can procure. The socialists in your day proposed no plan that calculated sufficiently upon the selfishness of the individual. They expected that everybody would accept the position assigned to him and work faithfully for the good of all. But it was too soon to expect this. Your race is very young. It is not so long since your ancestors ceased to depend on the spontaneous productions of the earth for their sustenance, and began to supplement them by their own exertions. With some of your races work is beginning to be instinctive, but there are yet enough in every nation, who, by their hereditary aversion to exertion are ready to shirk out of labor and make the burden of the instinctively industrious intolerable. Your race is too young yet, here at the close of the twentieth century, to take on the purely instinctive socialistic conditions as we Lunarians have them.”

“You think then that socialism to be successful must be instinctive as it is with the bees?”

“To be permanently successful it must be founded upon such an instinct for industry, that makes it more agreeable for a person to work, than to be idle, or to be merely amused. That is, the individual must love work for the sake of the work rather than for the reward that is to come after it. It is indeed true that only the stimulation of the reward at the end could ever have created or kept up the habit of work until it became instinctive, and it is true that if this reward at the end should habitually cease to be realized to at least some degree, the instinct for the work would in course of time become undone—unwound as we might say. The expectation of the reward if it is as constant as the work, would naturally become a part of the instinct. But there are often disappointments as to the reward, while the work itself remains constant, so that this part of the instinct learns to be satisfied with smaller and smaller results until finally the necessaries of painless existence in which the working apparatus is kept in proper operating order are all the reward that the instinct requires.”

“Then,” said I, “in this supreme ideal of socialistic instinct, I understand you, that the individual lays aside all expectation of personal enjoyment, or the possession of anything in the way of luxuries or superfluities. It seems to me such an existence must be a very narrow one.”

“The possession of superfluities,” said he, “does not contribute at all to enjoyment of life. That is why they are superfluities. A luxury, however, is something that gives or is supposed to give unaccustomed pleasure, and it presupposes conditions or times in the ordinary life of the individual in which he fails to get perfect returns of happiness or satisfaction. But suppose there are no such times or conditions, and that he has no possible desire that his habitual work does not satisfy. Then his work is his luxury and no diversion to any unaccustomed function would procure so great a luxury. As to such existence being narrow, it all depends on the breadth of the work. If the work is circumscribed, the life is narrow. If the work is wide, diversified and complicated, then so is the life, whether it be accompanied by the elements of contingency and uncertainty of mind as with you or the assurance of settled and triumphant success as with us.

“All the same however true socialistic conditions are not realized to a nearly perfect degree up to this close of the twentieth century, although the advance toward them has been what the conservatives of your day would have regarded as alarming. In all cases where honest competition in the production of anything can be maintained, it is the policy of government to refrain from interference; but if the articles produced are necessary to consumers or are required as materials in the production of other goods that are, and the manufacturers of such things form trusts or combinations for the purpose of increasing the price, the government appoints receivers for such business and has it operated long enough to ascertain the cost of producing the article. The price is then fixed by the government.”

“But what if the parties decline to sell at the prices fixed by the state?”

“They do not decline unless they want to go out of business,” he replied, “because when the state interferes in such cases it amounts to notice to the parties that the state is ready, as an alternative, to undertake the business itself, when it speedily destroys extortion by furnishing the required product at a fair price.”