In the legal position of the nobility there had been no change. Legally the nobility and the clergy had remained the two ruling classes, and the middle class the class universally kept down and oppressed. But although there had legally been no change, yet actually the reversal of conditions had been all the more tremendous.
By the production and accumulation of capital and of personal property, in contrast to real estate, in the hands of the middle class, the nobility had dwindled into complete insignificance—even into actual dependence upon the enriched middle class. If the nobles wished to maintain their place beside the middle class, they must renounce all class traditions and begin to adopt the same methods of industrial acquisition to which the middle class owed their wealth and in consequence their de facto power. The comedies of Molière, who lived at the time of Louis XIV., show us, as an extremely interesting phenomenon, the nobles of the times despising the rich middle class and at the same time playing the parasite at its tables. Louis XIV. himself, this proudest of monarchs, takes off his hat in his palace at Versailles and humbles himself before the Jew, Samuel Bernard, the Rothschild of the times, in order to influence him in favor of a loan.
When Law, the famous Scotch financier, at the beginning of the eighteenth century, formed in France his trading companies—a stock corporation which was formed for the exploitation of the Mississippi region, the East Indies, etc., the Regent of France himself was on its directorate—a member of a merchant company! The Regent found himself in fact compelled in August, 1717, to issue edicts in virtue of which the nobles might, without loss of dignity, enter into the naval and military service of these trading companies! To that point, then, the warlike and proud feudal aristocracy of France had fallen—to be the armed employees of the industrial and commercial enterprises of the middle class, whose relations extended through all continents.
Corresponding to this radical change, there had already developed a materialism and an eager, grasping struggle for money and property which could overcome all moral ideas and (what I regret to say was generally still more significant for the privileged classes) even all privileges of rank. Under this same Regent of France, Count Horn, one of the highest of the aristocracy and connected with the first families of France, even with the Regent himself, was broken on the wheel as a common robber and murderer; and the Duchess of Orleans, a German princess, writes in a letter of November 29, 1719, that six ladies of the highest rank waylaid in the court of a building the above-mentioned Law, who was at that time the most courted and the busiest man in France and therefore very hard to interview, in order to induce him to dispose of some of the shares founded by him, for which at that time all France was competing and which brought on the Exchange six and eight times the nominal price at which Law had issued them.
If you ask me again what the causes were which made possible this development of manufacturing and the consequent wealth of the middle class, I should have to exceed, if I tried to give them thorough treatment, the time at my disposal. I can only enumerate for you the most essential ones: The discovery of America and its tremendous influence on production; the route to the East Indies around the Cape of Good Hope, taking the place of the former land route by way of Suez for all trade with the East Indies; the discovery of the magnetic needle and the invention of the mariner's compass, and in consequence greater safety and speed and lower insurance rates for all ocean traffic; the waterways established in the interior of the countries, the canals, also the good roads which made possible for the first time a more remote market through the lessening of the transportation costs of various commodities which formerly could not carry the raise in price thus caused; greater security of property; well-established courts of law; the invention of powder, and, in consequence of this invention, the breaking down by the monarchy of the feudal military power of the nobility; the dismissal of the mercenaries and mounted retainers of the nobles on account of the destruction of their castles and of their independent military power. For these retainers there was now nothing left but to find work in the medieval workshops. All these events gave impetus to the triumphal chariot of the middle class. All these events, and many more which might be enumerated, combined to produce this one effect. By the opening of wider markets and the accompanying reduction of the costs of production and transportation, there comes production for the world-market, and consequently the necessity for cheap production which, in its turn, can be met only by a constantly extending division of labor, i.e., by the more perfectly developed division of the work into its simplest mechanical processes; this in turn brings about a constantly increasing output.
We are on the ground here of action and reaction. Each of these circumstances is a cause for the other, and the latter then reacts upon the former, and extends it and increases its scope.
It must be clear that the production of an article in enormous quantities—its production for the world-market—is, in general, possible only if the costs of production of the article are low and if also its transportation is cheap enough not to raise its price essentially. Production in enormous quantities demands a wholesale market, and a wholesale market for any commodity can be obtained only by its low price, which makes it available for a very large number of consumers; thus the low cost of production and transportation of any commodity brings about its production on a huge scale in enormous quantities. It must also be clear, on the other hand, that the production of a commodity in enormous quantities causes and increases its cheapness. A manufacturer, for instance, who turns out 200,000 pieces of cotton goods in a year, is able, because he procures his raw material more cheaply on a large scale and because the profit on his capital and the interest on his plant is distributed over so large a number of pieces, to market each piece, within certain limits, at a far lower price than the manufacturer who produces yearly only 5,000 such pieces. Greater cheapness of production leads accordingly to production on a large scale. This results, in turn, in greater cheapness; this in its own turn brings about production in still greater quantities, and this still greater cheapness, and so on.
The relations are also quite similar in the matter of division of labor, which is another necessary condition for production in large quantities and for cheapness, for without it neither cheapness of production nor large quantities would be possible.
The division of labor which splits up the production of an article into a great number of very simple and often purely mechanical operations requiring no thought on the part of the operative, and sets at each one of these single operations a single workman, would be entirely impossible without extensive production of this article. It is therefore established and extended only through such production. On the other hand, this division of the work into simple operations leads (1), to a constantly increasing cheapness; (2), to production in enormous and constantly increasing quantities—a production calculated not only for this or that neighboring market, but for the entire world-market; and (3), through this and through new divisions which can for this reason be applied to single operations, to still farther advances in the division of labor itself.
By this series of actions and reactions there had accordingly appeared a complete transformation in the manufacturing institutions of the community and hence in all its relations of life. The best way to state this briefly is to reduce it to the following contrast: