What happened was interesting and significant. Coal and iron, and their derivatives—steam and machinery—rapidly revealed their possibilities. To take advantage of these, it was necessary that labour should be available in large quantities and freely subject to exploitation; that unlimited capital should be forthcoming; that adequate markets should be discovered or created to absorb the surplus product, so enormously greater than the normal demand; and finally, it was necessary that directors and organizers and administrators should be ready at the call. The conditions of the time made all these possible. The land-holding peasantry of England—and it is here that the revolution was accomplished—had been largely dispossessed and pauperized under Henry VIII, Edward VI and Elizabeth, while the development of the wool-growing industry had restricted the arable land to a point where it no longer gave employment to the mass of field labourers. The first blast of factory production threw out of work the whole body of cottage weavers, smiths, craftsmen; and the result was a great mass of men, women, and children without defense, void of all rights, and given the alternative of submission to the dominance of the exploiters, or starvation.
Without capital the new industry could neither begin nor continue. The exploits of the "joint-stock companies" invented and perfected in the eighteenth century, showed how this capital could easily be obtained, while the paralyzing and dismemberment of the Church during the Reformation had resulted in the abrogation of the old ecclesiastical inhibition against usury. The necessary capital was forthcoming, and the foundations were laid for the great system of finance which was one of the triumphant achievements of the last century.
The question of markets was more difficult. It was clear that, through machinery, the exploitation of labour, and the manipulations of finance, the product would be enormously greater than the local or national demand. Until they themselves developed their own industrial system, the other nations of Europe were available, but as this process proceeded other markets had to be found; the result was achieved through advertising, i.e., the stimulating in the minds of the general public of a covetousness for something they had not known of and did not need, and the exploiting of barbarous or undeveloped races in Asia, Africa, Oceanica. This last task was easily achieved through "peaceful penetration" and the preëmpting of "spheres of influence." In the end (i.e., A.D. 1914), the whole world had so been divided, the stimulated markets showed signs of repletion, and since exaggerated profits meant increasing capital demanding investment, and the improvement in "labour-saving" devices continued unchecked, the contest for others' markets became acute, and world-politic was concentrated on the vital problem of markets, lines of communication, and tariffs.
As for the finding or development of competent organizers and directors, the history of the world since the end of medievalism had curiously provided for this after a fashion that seemed almost miraculous. The type required was different from anything that had been developed before. Whenever the qualitative standard had been operative, it was necessary that the leaders in any form of creative action should be men of highly developed intellect, fine sensibility, wide and penetrating vision, nobility of instinct, passion for righteousness, and a consciousness of the eternal force of charity, honour, and service. During the imperial or decadent stages, courage, dynamic force, the passion for adventure, unscrupulousness in the matter of method, took the place of the qualities that marked the earlier periods. In the first instance the result was the great law-givers, philosophers, prophets, religious leaders, and artists of every sort; in the second, the great conquerors. Something quite different was now demanded—men who possessed some of the qualities needed for the development of imperialism, but who were unhampered by the restrictive influences of those who had sought perfection. To organize and administer the new industrial-financial-commercial régime, the leaders must be shrewd, ingenious, quick-witted, thick-skinned, unscrupulous, hard-headed, and avaricious; yet daring, dominating, and gifted with keen prevision and vivid imagination. These qualities had not been bred under any of the Mediterranean civilizations, or that of Central Europe in the Middle Ages, which had inherited so much therefrom. The pursuit of perfection always implies a definite aristocracy, which is as much a goal of effort as a noble philosophy, an august civil polity or a great art. This aristocracy was an accepted and indispensable part of society, and it was always more or less the same in principle, and always the centre and source of leadership, without which society cannot endure. It is true that at the hands of Christianity it acquired a new quality, that of service as contingent on privilege—one might almost say of privilege as contingent on service—and the ideals of honour, chivalry, compassion were established as its object and method of operation even though these were not always achieved, but the result was not a new creation; it was an institution as old as society, regenerated and transformed and playing a greater and a nobler part than ever before.
Between the years 1455 and 1795 this old aristocracy was largely exterminated. The Wars of the Roses, the massacres of the Reformation, and the Civil Wars in England; the Thirty Years' War in Germany; the Hundred Years' War, the Wars of Religion, and the Revolution in France had decimated the families old in honour, preserving the tradition of culture, jealous of their alliances and their breeding—the natural and actual leaders in thought and action. England suffered badly enough as the result of war, with the persecutions of Henry VIII, Edward VI and Elizabeth, and the Black Death, included for full measure. France suffered also, but Germany fared worst of all. By the end of the Thirty Years' War the older feudal nobility had largely disappeared, while the class of "gentlemen" had been almost exterminated. In France, until the fall of Napoleon III, and in Germany and Great Britain up to the present moment, the recruiting of the formal aristocracy has gone on steadily, but on a different basis and from a different class from anything known before. Demonstrated personal ability to gain and maintain leadership; distinguished service to the nation in war or statecraft; courage, honour, fealty—these, in general, had been the ground for admission to the ranks of the aristocracy. In general, also, advancement to the ranks of the higher nobility was from the class of "gentlemen," though the Church, the universities, and chivalry gave, during the Middle Ages, wide opportunity for personal merit to achieve the highest honours.
Through the wholesale destruction of the representatives of a class that from the beginning of history had been the directing and creative force in civilization, a process began which was almost mechanical. As the upper strata of society were planed off by war, pestilence, civil slaughter, and assassination, the pressure on the great mass of men (peasants, serfs, unskilled labourers, the so-called "lower classes") was increasingly relaxed, and very soon the thin film of aristocracy, further weakened by dilution, broke, and through the crumbling shell burst to the surface those who had behind them no tradition but that of servility, no comprehension of the ideals of chivalry and honour of the gentleman, no stored-up results of education and culture, but only an age-long rage against the age-long dominating class, together with the instincts of craftiness, parsimony, and almost savage self-interest.
As a class, it was very far from being what it was under the Roman Empire; on the other hand, it was equally removed from what it was during the Middle Ages in England, France and the Rhineland. Under mediaevalism chattel slavery had disappeared, and the lot of the peasant was a happier one than he had known before. He had achieved definite status, and the line that separated him from the gentry was very thin and constantly traversed, thanks to the accepted system of land tenure, the guilds, chivalry, the schools and universities, the priesthood and monasticism. The Renaissance had rapidly changed all this, however; absolutism in government, dispossession of land, the abolition of the guilds, and the collapse of the moral order and of the dominance of the Church, were fast pushing the peasant back into the position he had held under the Roman Empire, and from which Christianity had lifted him. By 1790 he had been for nearly three centuries under a progressive oppression that had undone nearly all the beneficent work of the Middle Ages and made the peasant class practically outlaw, while breaking down its character, degrading its morals, increasing its ignorance, and building up a sullen rage and an invincible hatred of all that stood visible as law and order in the persons of the ruling class.
Filtering through the impoverished and diluted crust of a dissolving aristocracy, came this irruption from below. In their own persons certain of these people possessed the qualities and the will which were imperative for the organization of the industry, the trade, and the finance that were to control the world for four generations, and produce that industrial civilization which is the basis and the energizing force of modernism. Immediately, and with conspicuous ability, they took hold of the problem, solved its difficulties, developed its possibilities, and by the end of the nineteenth century had made it master of the world.
Simultaneously an equal revolution and reversal was being effected in government. The free monarchies of the Middle Ages, beneath which lay the well recognized principle that no authority, human or divine, could give any monarch the right to govern wrong, and that there was such a thing (frequently exercised) as lawful rebellion, gave place to the absolutism and autocracy of Renaissance kingship and this, which was fostered both by Renaissance and Reformation, became at once the ally of the new forces in society and so furthered the growth as well as the misery and the degradation of the proletariat. In revolt against this new and very evil thing came the republicanism of the eighteenth century, inspired and directed in large measure by members of the fast perishing aristocracy of race, character and tradition. It was a splendid uprising against tyranny and oppression and is best expressed in the personalities and the actions of the Constitutional Convention of the United States in 1787 and the States General of France in 1789.
The movement is not to be confounded with another that synchronizes with it, that is to say, democracy, for the two things are radically different in their antecedents, their protagonists, their modes of operation and their objects. While the one was the aspiration and the creation of the more enlightened and cultured, the representatives of the old aristocracy, the other issued out of the same milieu that was responsible for the new social organism. That is to say; while certain of the more shrewd and ingenious were organizing trade, manufacture and finance and developing its autocratic and imperialistic possibilities at the expense of the great mass of their blood-brothers, others of the same social antecedents were devising a new theory, and experimenting in new schemes, of government, which would take all power away from the class that had hitherto exercised it and fix it firmly in the hands of the emancipated proletariat. This new model was called then, and is called now, democracy. Elsewhere I have tried to distinguish between democracy of theory and democracy of method. Perhaps I should have used a more lucid nomenclature if I had simply distinguished between republicanism and democracy, for this is what it amounts to. The former is as old as man, and is part of the "passion for perfection" that characterizes all crescent society, and is indeed the chief difference between brute and human nature; it means the guaranteeing of justice, and may be described as consisting of abolition of privilege, equality of opportunity, and utilization of ability. Democracy of method consists in a variable and uncertain sequence of devices which are supposed to achieve the democracy of ideal, but as a matter of fact have thus far usually worked in the opposite direction. The activity of this movement synchronizes with the pressing upward of the "the masses" through the dissolving crust of "the classes," and represents their contribution to the science of political philosophy, as the contribution of the latter is current "political economy."