If one could get Mr. Carnegie into one of the works in which he is interested and stand with him in front of one of the great furnaces as it poured forth its stream of molten metal, he might say: "See! that is partly mine. It is part of my wealth!" Then, if one were to ask "But what are you going to do with that steel, Mr. Carnegie—is it useful to you?" Mr. Carnegie would laugh at the thought. He would probably reply, "No, bless your life! The steel is useless to me. I don't want it. But somebody else does. It is useful to other people."
Ask Mr. Rockefeller, "Is this oil refinery your property, Mr. Rockefeller?" and he would reply: "It is partly mine. I own a big share in it and it represents part of my wealth." Ask him next: "But, Mr. Rockefeller, what are you going to do with all that oil? Surely, you cannot need so much oil for your own use?" and he, like Mr. Carnegie, would reply: "No! The oil is useless to me. I don't want it. But somebody else does. It is useful to other people."
To be rich in our present social state, Jonathan, you must not only own an abundance of things useful to you, but also things useful only to others, which you can sell to them at a profit. Wealth, in our present society, then consists in the possession of things having an exchange value—things which other people will buy from you. So endeth our first lesson in political economy.
And here beginneth our second lesson, Jonathan. We must now consider how wealth is produced.
The Socialists say that all wealth is produced by labor applied to natural resources. That is a very simple answer, which you can easily remember. But I want you to examine it well. Think it over: ask yourself whether anything in your experience as a workingman confirms or disproves it. Do you produce wealth? Do your fellow workers produce wealth? Do you know of any other way in which wealth can be produced than by labor applied to natural resources? Don't be fooled, Jonathan. Think for yourself!
The wealth of a fisherman consists in an abundance of fish for which there is a good market. But suppose there is a big demand for fish in the cities and that, at the same time, there are millions of fish in the sea, ready to be caught. So long as they are in the sea, the fish are not wealth. Even if the sea belonged to a private individual, as the oil-wells belong to Mr. Rockefeller and a few other individuals, nobody would be any the better off. Fish in the sea are not wealth, but fish in the market-places are. Why, because labor has been expended in catching them and bringing them to market.
There are millions of tons of coal in Pennsylvania. President Baer said, you will remember, that God had appointed him and a few other gentlemen to look after that coal, to act as His trustees. And Mr. Baer wasn't joking, either. That is the funny part of the story: he was actually serious when he uttered that foolish blasphemy! There are also millions of people who want coal, whose very lives depend upon it. People who will pay almost any price for it rather than go without it.
The coal is there, millions of tons of it. But suppose that nobody digs for it; that the coal is left where Nature produced it, or where God placed it, whichever description you prefer? Do you think it would do anybody any good lying there, just as it lay untouched when the Indian roved through the forests ignorant of its presence? Would anybody be wealthier on account of the coal being there? Of course not. It only becomes wealth when somebody's labor makes it available. Every dollar of the wealth of our coal-mining industry, as of the fishing industries, represents human labor.
I need not go through the list of all our industries, Jonathan, to make this truth clear to you. If it pleases you to do so, you can easily do that for yourself. I simply wanted to make it clear that the Socialists are stating a great universal truth when they say that labor applied to natural resources is the true source of all wealth. As Sir William Petty said long ago: "Labor is the father and land is the mother of all wealth."
But you must be careful, Jonathan, not to misuse that word "labor." Socialists don't mean the labor of the hands only, when they speak of labor. Take the case of the coal-mines again, just for a moment: There are men who dig the coal, called miners. But before they can work there must be other men to make tools and machinery for them. And before there can be machinery made and fixed in its proper place there must be surveyors and engineers, men with a special education and capacity, to draw the plans, and so on. Then there must be some men to organize the business, to take orders for the coal, to see that it is shipped, to collect the payment agreed upon, so that the workers can be paid, and so on through a long list of things requiring mental labor.