In no state of human nature that any persons now living, or the grandchild of any person now living, will witness, could such conditions be permanent. Their temporary realization might be accomplished; but if it were, the able men would not be satisfied with either the low grade of civilization inevitable unless they worked, or with being robbed of the large share of production that must result from their work. The more intelligent of the rank and file, too, would rebel against the conditions inevitably lowering the general prosperity, and they would soon realize the difference in industrial leadership between “political generals” and natural generals. Insurrection would follow, and then anarchy, after which things would start again on their present basis, but some generations behind.
But I for one do not expect these experiences, especially in America: for here probably enough men have already become property holders to make a sufficient balance of power for the preservation of property. If not, the first step toward ensuring civilization, is helping enough men to develop into property holders, and continue property holders, which general experience declares that they will not unless they develop their property themselves.
An Experiment in Syndicalism
During the last twenty years New Zealand has tried many social and economic experiments; these experiments have been made by her own Legislature, and her own people; and as a rule they have been remarkably successful: during the last few months she has had the experience of a new one conducted by strangers, and made at her expense. Fortunately there is reason to believe that this one will be found to have resulted in benefit to New Zealand and its people, while it may prove of service to older and larger countries. It is probable that the most widely known of New Zealand’s experiments is that which aimed at doing justice to employers and employees alike by the substitution for the Industrial strike of a Court of Arbitration, fairly constituted, on which both Workers and Employers were equally represented. This law has been branded by the supporters of the usual Strike policy with the name of “Compulsory Arbitration,” the object being to discredit it in the eyes of the workers, as an infringement of their liberty. The title is unfair and misleading. Unlike most laws, it never has been of universal application either to Workers or Employers, but only to those among them that chose to form themselves into industrial Unions, and to register those Unions as subject to the provisions of the Statute. The purpose of the Statute was an appeal to the common sense of the people, by offering them an alternative method of settling disputes and securing that fair-play for both parties which experience had shown could seldom be secured by the strike. The law, which was first introduced in 1894, had gradually appealed both to workers and employers, as worth trying, and before the close of the last century it [pg 30]had rendered the country prosperous, and had attracted the attention of thoughtful people in many other parts of the world to the “Country Without Strikes.” Efforts were made in several countries to introduce the principle of the New Zealand Statute, but with very little success, as it was generally opposed both by workers and employers:—the workers feeling confident they could obtain greater concessions by the forceful methods of the strike, and the employers suspecting that any Court of Arbitration would be likely to give the workers more than, without arbitration, they could compel the employers to surrender.
In the mean time the statutory substitute for the strike continued to succeed in New Zealand. Nearly every class of town workers, and some in the country, had formed Unions, and registered them under the arbitration law. With a single trifling exception, that was speedily put an end to by the punishment of the Union with the alternative of heavy fine or imprisonment, the country was literally as well as nominally a country without a strike. And it was something more than that: its prosperity increased year by year, and its production of goods—agricultural, pastoral, and manufactured—increased at a pace unequalled elsewhere. Yet the prosperity was most apparent in its effect on the conditions of the workers: under the successive awards of the arbitration court, wages had steadily increased until they had reached a point as high as in similar trades in America, while the cost of living was very little more than half the rate in any town in the United States. To all intelligent observers these facts were evident, and could not be concealed from the workers in other countries, especially in Australia, as the nearest geographically to New Zealand and commercially the most closely connected.
The effect, however, on the workers of Australia was not what might have been expected. Attempts had been made by some of the State Legislatures to introduce arbitration [pg 31]laws more or less like the New Zealand statute, but with very partial success. From the first these laws were opposed by the leaders of the Labor Unions, who naturally saw a menace to their influence in the fact that they became subject to punishment if they attempted to use their accustomed powers over their fellow unionists. The example of New Zealand was lauded in the Australian Legislatures and newspapers, and even in the courts, till at last a feeling of strong antagonism was developed among the more advanced class of socialistic Labor men, and it was decided by their leaders to undertake a campaign in the neighboring Dominion against the system of settling industrial questions by courts, and in favor of substituting the system of strikes, with their attendant power and profit to the Labor leaders. The first steps taken were sending men from Australia or England on lecturing tours through New Zealand, to create dissatisfaction with the Arbitration Courts by representing them as leaning to the side of the employers, and ignoring the claims of the workers. When this had gone on for about a year, workers of various classes were induced to cross from Australia, and join the Unions in New Zealand, for the purpose of influencing their fellow unionists to disloyalty towards the system under which they were registered. These men were generally competent workers and clever agitators, and many of them soon obtained prominence and official position in the Unions. As was natural, a good many of these new-comers were miners—either for coal or gold—and many of them joined the miners’ union at the great gold mine known as the Waihi, from which upwards of thirty million dollars worth of gold had been dug, and which was still yielding between three and four million dollars a year. There were nearly a thousand miners employed there, and all of them were members of a Union that was duly registered under the Arbitration statute.
There had been several questions in dispute between [pg 32]the miners and the owners, and these had been referred to the Arbitration Court some time before the arrival of the new Australian miners. The result, while it favored the Union in some respects, favored the Company in others, and this fact was used by the new-comers to convince the older hands that the Court had been unfair, and that they could secure much better terms for themselves if they would cease work, and so inflict immense loss by permitting the lower levels of the mine to become flooded. After a few months the Union decided to take advantage of the provision of the law which enabled any registered Union to withdraw its registration at six months’ notice. When the time had expired, the Union repeated the demand which had been refused by the Court, and on the refusal of the Company to agree, a strike was at once declared, and the whole of the miners ceased work. This had the effect, within a very short time, of rendering all the deeper levels of the mine unworkable. Close to the mine was a prosperous little town occupied chiefly by the miners and their families, most of the houses being the property of the mining company, and the men continued to occupy the houses while the strike was in progress. Other miners were found who were ready to take their places, but the men in possession refused to move out, and threatened with violence any miners that should attempt to work the mine. The men who had been prepared to work, finding this to be the position, withdrew. As there was no actual violence shown, there seemed to be a difficulty in the way of any interference by the Government: so several months passed, during which the mine lay idle while the miners on strike continued to occupy the houses and pay the very moderate rents demanded from employees of the company. This they were able to do partly from their savings, partly from the sympathetic contributions from Australia, and partly by some of the miners having scattered over the country and got work on the farms, and throwing their earnings into the common fund.