IB, ID, represent the total product, general utility, what satisfies man’s wants, absolute wealth.

IA, IC, the co-operation of nature, gratuitous utility, the part which belongs to the domain of community.

AB, CD, human service, onerous utility, value, relative wealth, the part which belongs to the domain of property.

I need not say that AB, which you may suppose, if you will, to represent a house, a piece of furniture, a book, a song sung by Jenny Lind, a horse, a bale of cloth, a consultation of physicians, etc., will exchange for twice CD, and that the two men who effect the exchange will give into the bargain, and without even being aware of it, the one, once IA, the other twice IC.

Man is so constituted that his constant endeavour is to diminish the proportion of effort to result, to substitute the action of nature for his own action; in a word, to accomplish more with less. This is the constant aim of his skill, his intelligence, and his energy.

Let us suppose then that John, the producer of IB, discovers a process by means of which he accomplishes his work with one-half the labour which it formerly cost him, taking everything into account, even the construction of the instrument by means of which he avails himself of the co-operation of nature.

As long as he preserves his secret, we shall have no change in the figures we have given above; AB and CD will represent the same values, the same relations; for John alone of all the world being acquainted with the improved process, he will turn it exclusively to his own profit and advantage. He will take his ease for half the day, or else he will make, each day, twice the quantity of IB, and his labour will be better remunerated. The discovery he has made is for the good of mankind, but mankind in this case is represented by one man.

And here let us remark, in passing, how fallacious is the axiom of the English Economists that value comes from labour, if thereby it is intended to represent value and labour as proportionate. Here we have the labour diminished by one-half, and yet no change in the value. This is what constantly happens, and why? Because the service is the same. Before as after the discovery, as long as it is a secret, he who gives or transfers IB renders the same service. But things will no longer be in the same position when Peter, the producer of ID, is enabled to say, “You ask me for two hours of my labour in exchange for one hour of yours; but I have found out your process, and if you set so high a price on your service, I shall serve myself.”

Now this day must necessarily come. A process once realized [p330] is not long a mystery. Then the value of the product IB will fall by one-half, and we shall have these two figures.

AA´ represent value annihilated, relative wealth which has disappeared, property become common, utility formerly onerous, now gratuitous.

For, as regards John, who here represents the producer, he is reinstated in his former condition. With the same effort which it cost him formerly to produce IB, he can now produce twice as much. In order to obtain twice ID, we see him constrained to give twice IB, or what IB represents, be it furniture, books, houses, or what it may.

Who profits by all this? Clearly Peter, the producer of ID, who here represents consumers in general, including John himself. If, in fact, John desires to consume his own product, he profits by the saving of time represented by the suppression of AA´. As regards Peter, that is to say as regards consumers in general, they can now purchase IB with half the expenditure of time, effort, labour, value, compared with what it would have cost them before the intervention of natural forces. These forces, then, are gratuitous, and, moreover, common.

Since I have ventured to illustrate my argument by geometrical figures, perhaps I may be permitted to give another example, and I shall be happy if by this method—somewhat whimsical, I allow, as applied to Political Economy—I can render more intelligible to the reader the phenomena which I wish to describe.

As a producer, or as a consumer, every man may be considered as a centre from whence radiate the services which he renders, and to which tend the services which he receives in exchange.

Suppose then that there is placed at A (Fig. 1) a producer, a copyist, for example, or transcriber of manuscripts, who here represents all producers, or production in general. He furnishes to society four manuscripts. If at the present moment the value of each of these manuscripts is equal to 15, he renders services equal to 60, and receives an equal value, variously spread over a multitude of services. To simplify the demonstration, I suppose only [p331] four of them, proceeding from four points of the circumference BCDE.

Fig. 1.

Fig. 2.

Value produced   = 60
Value received   = 60
Utility produced =  4

Value produced   = 60
Value received   = 60
Utility produced =  6

This man, we now suppose, discovers the art of printing. He can thenceforth produce in 40 hours what formerly would have cost him 60. Admit that competition forces him to reduce proportionally the price of his books, and that in place of being worth 15, they are now worth only 10. But then in place of four our workman can now produce six books. On the other hand, the fund of remuneration proceeding from the circumference, amounting to 60, has not changed. There is remuneration for six books, worth 10 each, just as there was formerly remuneration for four manuscripts, each worth 15.

This, let me remark briefly, is what is always lost sight of in discussing the question of machinery, of free-trade, and of progress in general. Men see the labour set free and rendered disposable by the expeditive process, and they become alarmed. They do not see that a corresponding proportion of remuneration is rendered disposable also by the same circumstance.

The new transactions we have supposed are represented by Fig. 2, where we see radiate from the centre A, a total value of 60, spread over six books, in place of four manuscripts. From the circumference still proceeds a value, equal to 60, necessary now as formerly, to make up the balance.

Who then has gained by the change? As regards value, no one. As regards real wealth, positive satisfactions, the countless body of consumers ranged round the circumference. Each of them can now purchase a book with an amount of labour reduced by one-third. But the consumers are the human race. For observe that [p332] A himself, if he gains nothing in his capacity of producer,—if he is obliged, as formerly, to perform 60 hours’ labour in order to obtain the old remuneration,—nevertheless, in as far as he is a consumer of books, gains exactly as others do. Like them, if he desires to read, he can procure this enjoyment with an economy of labour equal to one-third.

But if, in his character of producer, he finds himself at length deprived of the profit of his own inventions, by competition, where in that case is his compensation?

His compensation consists, 1st, in this, that as long as he was able to preserve his secret, he continued to sell 15 of what he produced at the cost of 10; 2dly, In this, that he obtains books for his own use at a smaller cost, and thus participates in the advantages he has procured for society. But, 3dly, His compensation consists above all in this, that just in the same way as he has been forced to impart to his fellow-men the benefit of his own progress, he benefits by the progress of his fellow-men.

Fig. 3.

Just as the progress accomplished by A has profited B, C, D, E, the progress realized by B, C, D, E has profited A. By turns A finds himself at the centre and at the circumference of universal industry, for he is by turns producer and consumer. If B, for example, is a cotton-spinner who has introduced improved machinery, the profit will redound to A as well as to C, D. If C is a mariner who has replaced the oar by the sail, the economy of labour will profit B, A, E.

In short, the whole mechanism reposes on this law:—

Progress benefits the producer, as such, only during the time necessary to recompense his skill. It soon produces a fall of value, and leaves to the first imitators a fair, but small, recompense. At length value becomes proportioned to the diminished labour, and the whole saving accrues to society at large.

Thus all profit by the progress of each, and each profits by the progress of all. The principle, each for all, all for each, put forward by the Socialists, and which they would have us receive as a novelty, the germ of which is to be discovered in their organizations founded on oppression and constraint, God himself has given us; and He has educed it from liberty. [p333]

God, I say, has given us this principle, and He has not established it in a model community, presided over by M. Considérant, or in a Phalanstère of six hundred harmoniens, or in a tentative Icarie,67 on condition that a few fanatics should submit themselves to the arbitrary power of a monomaniac, and that the faithless should pay for the true believers. No, God has established the principle each for all and all for each generally, universally, by a marvellous mechanism, in which justice, liberty, utility, and sociability are mingled and reconciled in such a degree as ought to discourage these manufacturers of social organizations.

Observe that this great law of each for all and all for each is much more universal than my demonstration supposes it. Words are dull and heavy, and the pen still more so. The writer is obliged to exhibit successively, and one after the other, with despairing slowness, phenomena which recommend themselves to our admiration only in the aggregate.

Thus, I have just spoken of inventions. You might conclude that this was the only case in which progress, once attained, escapes from the producer, and goes to enlarge the common fund of mankind. It is not so. It is a general law that every advantage of whatever kind, proceeding from local situation, climate, or any other liberality of nature, slips rapidly from the hands of the person who first discovered and appropriated it—not on that account to be lost, but to go to feed the vast reservoir from which the enjoyments of mankind are derived. One condition alone is attached, which is, that labour and transactions should be free. To run counter to liberty is to run counter to the designs of Providence; it is to suspend the operation of God’s law, and limit progress in a double sense.

What I have just said with reference to the transfer of advantages holds equally true of evils and disadvantages. Nothing remains permanently with the producer—neither advantages nor inconveniences. Both tend to disseminate themselves through society at large.

We have just seen with what avidity the producer seeks to avail himself of whatever may facilitate his work; and we have seen, too, in how short a time the profit arising from inventions and discoveries slips from the inventor’s hands. It seems as if that profit were not in the hands of a superior intelligence, but of a blind and obedient instrument of general progress.

With the same ardour he shuns all that can shackle his action; and this is a happy thing for the human race, for it is to mankind [p334] at large that in the long-run obstacles are prejudicial. Suppose, for example, that A, the producer of books, is subjected to a heavy tax. He must add the amount of that tax to the price of his books. It will enter into the value of the books as a constituent part, the effect of which will be that B, C, D, E must give more labour in exchange for the same satisfaction. Their compensation will consist in the purpose to which Government applies the tax. If the use to which it is applied is beneficial, they may gain instead of losing by the arrangement. If it is employed to oppress them, they will suffer in a double sense. But as far as A is concerned, he is relieved of the tax, although he pays it in the first instance.

I do not mean to say that the producer does not frequently suffer from obstacles of various kinds, and from taxes among others. Sometimes he suffers most seriously from the operation of taxes, and it is precisely on that account that taxes tend to shift their incidence, and to fall ultimately on the masses.

Thus, in France, wine has been subjected to a multitude of exactions. And then a system has been introduced which restricts its sale abroad.

It is curious to observe what skips and bounds such burdens make in passing from the producer to the consumer. No sooner has the tax or restriction begun to operate than the producer endeavours to indemnify himself. But the demand of the consumers, as well as the supply of wine, remaining the same, the price cannot rise. The producer gets no more for his wine after, than he did before, the imposition of the tax. And as before the tax he received no more than an ordinary and adequate price, determined by services freely exchanged, he finds himself a loser by the whole amount of the tax. To cause the price to rise, he is obliged to diminish the quantity of wine produced.68 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The consumer, then,—the public,—is relatively to the loss or profit which affects in the first instance certain classes of producers what the earth is to electricity—the great common reservoir. All proceeds from it, and after some detours, longer or shorter as the case may be, and after having given rise to certain phenomena more or less varied, all returns to it again.

 

We have just shown that the economic effects only glance upon the producer, so to speak, on their way to the consumer, and that consequently all great and important questions of this kind must [p335] be regarded from the consumer’s point of view if we wish to make ourselves masters of their general and permanent consequences.

This subordination of the interests of the producer to that of the consumer, which we have deduced from the consideration of utility, is fully confirmed when we advert to the consideration of morality.

Responsibility, in fact, always rests with the initiative. Now where is the initiative? In demand.

Demand (which implies the means of remuneration) determines all—the direction of capital and of labour, the distribution of population, the morality of professions, etc. Demand answers to Desire, while Supply answers to Effort. Desire is reasonable or unreasonable, moral or immoral. Effort, which is only an effect, is morally neuter, or has only a reflected morality.

Demand or Consumption says to the producer, “Make that for me.” The producer obeys. And this would be evident in every case if the producer always and everywhere waited for the demand.

But in practice this is not the case.

Is it exchange which has led to the division of labour, or the division of labour which has given rise to exchange? This is a subtle and thorny question. Let us say that man makes exchanges, because, being intelligent and sociable, he comprehends that this is one means of increasing the proportion of result to effort. That which results exclusively from the division of labour and from foresight, is that a man does not wait for a specific request to work for another. Experience teaches him tacitly that demand exists.

He makes the effort beforehand which is to satisfy the demand, and this gives rise to trades and professions. Beforehand he makes shoes, hats, etc., or prepares himself to sing, to teach, to plead, to fight, etc. But is it really the supply which precedes the demand, and determines it?

No. It is because there is a sufficient certainty that these different services will be demanded that men prepare to render them, although they do not always know precisely from what quarter the demand may come. And the proof of it is, that the relation between these different services is sufficiently well known, that their value has been so widely tested that one may devote himself with some security to a particular manufacture, or embrace a particular career.

The impulse of demand is then pre-existent, seeing that one may calculate the intensity of it with so much precision. [p336]

Moreover, when a man betakes himself to a particular trade or profession, and sets himself to produce commodities, about what is he solicitous? Is it about the utility of the article which he manufactures, or its results, good or bad, moral or immoral? Not at all; he thinks only of its value. It is the demander who looks to the utility. Utility answers to his want, his desire, his caprice. Value, on the contrary, has relation only to the effort made, to the service transferred. It is only when, by means of exchange, the producer in his turn becomes the demander that utility is looked to. When I resolve to manufacture hats rather than shoes, I do not ask myself the question, whether men have a greater interest in protecting their heads or their heels. No, that concerns the demander, and determines the demand. The demand in its turn determines the value, or the degree of esteem in which the public holds the service. Value, in short, determines the effort or the supply.

Hence result some very remarkable consequences in a moral point of view. Two nations may be equally furnished with values, that is to say, with relative wealth (see chap. vi), and very unequally provided with real utilities, or absolute wealth; and this happens when one of them forms desires which are more unreasonable than those of the other—when the one considers its real wants, and the other creates for itself wants which are factitious or immoral.

 

Among one people a taste for education may predominate; among another a taste for good living. In such circumstances we render a service to the first when we have something to teach them; to the other, when we please their palate.

Now, services are remunerated according to the degree of importance we attach to them. If we do not exchange, if we render these services to ourselves, what should determine us if not the nature and intensity of our desires?

In one of the countries we have supposed, professors and teachers will abound; in the other, cooks.

In both, the services exchanged may be equal in the aggregate, and may consequently represent equal values, or equal relative wealth, but not the same absolute wealth. In other words, the one employs its labour well, and the other employs it ill.

And as regards satisfactions the result will be this, that the one people will have much instruction, and the other good dinners. The ultimate consequences of this diversity of tastes will have considerable influence not only upon real, but upon relative wealth; [p337] for education may develop new means of rendering services, which good dinners never can.

We remark among nations a prodigious diversity of tastes, arising from their antecedents, their character, their opinions, their vanity, etc.

No doubt there are some wants so imperious (hunger and thirst, for example) that we regard them as determinate quantities. And yet it is not uncommon to see a man scrimp himself of food in order to have good clothes, while another never thinks of his dress until his appetite is satisfied. The same thing holds of nations.

But these imperious wants once satisfied, everything else depends greatly on the will. It becomes an affair of taste, and in that region morality and good sense have much influence.

The intensity of the various national desires determines always the quantity of labour which each people subtracts from the aggregate of its efforts in order to satisfy each of its desires. An Englishman must, above all things, be well fed. For this reason he devotes an enormous amount of his labour to the production of food, and if he produces any other commodities, it is with the intention of exchanging them abroad for alimentary substances. The quantity of corn, meat, butter, milk, sugar, etc., consumed in England is frightful. A Frenchman desires to be amused. He delights in what pleases his eye, and in frequent changes. His labours are in accordance with his tastes. Hence we have in France multitudes of singers, mountebanks, milliners, elegant shops, coffee-rooms, etc. In China, the natives dream away life agreeably under the influence of opium, and this is the reason why so great an amount of their national labour is devoted to procuring this precious narcotic, either by direct production, or indirectly by means of exchange. In Spain, where the pomp of religious worship is carried to so great a height, the exertions of the people are bestowed on the decoration of churches, etc.

I shall not go the length of asserting that there is no immorality in services which pander to immoral and depraved desires. But the immoral principle is obviously in the desire itself.

That would be beyond doubt were man living in a state of isolation; and it is equally true as regards man in society, for society is only individuality enlarged.

Who then would think of blaming our labourers in the south of France for producing brandy? They satisfy a demand. They dig their vineyards, dress their vines, gather and distil the grapes, without concerning themselves about the use which will be made of the product. It is for the man who seeks the enjoyment to [p338] consider whether it is proper, moral, rational, or productive of good. The responsibility rests with him. The business of the world could be conducted on no other footing. Is the tailor to tell his customer that he cannot make him a coat of the fashion he wants because it is extravagant, or because it prevents his breathing freely, etc., etc.

Then what concern is it of our poor vine-dressers if rich diners-out in London indulge too freely in claret? Or can we seriously accuse the English of raising opium in India with the deliberate intention of poisoning the Chinese?

A frivolous people requires frivolous manufactures, just as a serious people requires industry of a more serious kind. If the human race is to be improved, it must be by the improved morality of the consumer, not of the producer.

This is the design of religion in addressing the rich—the great consumers—so seriously on their immense responsibility. From another point of view, and employing a different language, Political Economy arrives at the same conclusion, when she affirms that we cannot check the supply of any commodity which is in demand; that as regards the producer, the commodity is simply a value, a sort of current coin which represents nothing either good or evil, whilst it is in the intention of the consumer that utility, or moral or immoral enjoyment, is to be discovered; consequently, that it is incumbent on the man who manifests the desire or makes the demand for the commodity to weigh the consequences, whether useful or hurtful, and to answer before God and man for the good or bad direction which he impresses upon industry.

Thus from whatever point of view we regard the subject, we see clearly that consumption is the great end of Political Economy; and that good and evil, morality and immorality, harmonies and dissonances, all come to centre in the consumer, for he represents mankind at large. [p339]

XII.
THE TWO APHORISMS.


TOC

Modern moralists who oppose the maxim, Chacun pour tous, tous pour chacun, to the old proverb, Chacun pour soi, chacun chez soi, have formed a very incomplete, and for that reason a very false, and, I would add, a very melancholy idea of Society.

Let us eliminate, in the first place, from these two celebrated sayings what is superfluous. All for each is a redundancy, introduced from love of antithesis, for it is expressly included in each for all. As regards the saying chacun chez soi, the idea has no direct relation with the others; but, as it is of great importance in Political Economy, we shall make it hereafter the subject of inquiry.

It remains for us to consider the assumed opposition between these two members of the adages we have quoted, namely, each for alleach for himself. The one, it is said, expresses the sympathetic principle, the other the individualist or selfish principle. The first unites, the second divides.

Now, if we refer exclusively to the motive which determines the effort, the opposition is incontestable. But I maintain that if we consider the aggregate of human efforts in their results, the case is different. Examine Society, as it actually exists, obeying, as regards services which are capable of remuneration, the individualist or selfish principle; and you will be at once convinced that every man in working for himself is in fact working for all. This is beyond doubt. If the reader of these lines exercises a profession or trade, I entreat him for a moment to turn his regards upon himself; and I would ask him whether all his labours have not the satisfaction of others for their object, and, on the other hand, whether it is not to the exertions of others that he himself owes all his satisfactions.

It is evident that they who assert that each for himself and each [p340] for all are contradictory, conceive that an incompatibility exists between individualism and association. They think that each for himself implies isolation, or a tendency to isolation; that personal interest divides men, in place of uniting them, and that this principle tends to the chacun chez soi, that is to say, to the absence of all social relations.

In taking this view, I repeat, they form a false, because incomplete idea of society. Even when moved only by personal interest, men seek to draw nearer each other, to combine their efforts, to unite their forces, to work for one another, to render reciprocal services, to associate. It would not be correct to say that they act in this way in spite of self-interest; they do so in obedience to self-interest. They associate because they find their account in it. If they did not find it for their advantage, they would not associate. Individualism, then, or a regard to personal interest, performs the work which the sentimentalists of our day would confide to Fraternity, to self-sacrifice, or some other motive opposed to self-love. And this just establishes the conclusion at which we never fail to arrive—that Providence has provided for the social state much better than the men can who call themselves its prophets. For of two things one; either union is injurious to individuality, or it is advantageous to it. If it injures it, what are the Socialist gentlemen to do, how can they manage, and what rational motive can they have to bring about a state of things which is hurtful to everybody? If, on the contrary, union is advantageous, it will be brought about by the action of personal interest, which is the strongest, the most permanent, the most uniform, the most universal, of all motives, let men say what they will.

Just look at how the thing actually works in practice. A squatter goes away to clear a field in the Far West. Not a day passes without his experiencing the difficulties which isolation creates. A second squatter now makes his way to the desert. Where does he pitch his tent? Does he retire naturally to a distance from the first? No; he draws near to him naturally—and why? Because he knows all the advantages that men derive, with equal exertion, from the very circumstance of proximity. He knows that on various occasions they can accommodate each other by lending and borrowing tools and instruments, by uniting their action, by conquering difficulties insurmountable by individual exertion, by creating reciprocally a market for produce, by interchanging their views and opinions, and by providing for their common safety. A third, a fourth, a fifth squatter penetrates into [p341] the desert, and is invariably attracted by the smoke of the first settlements. Other people will then step in with larger capital, knowing that they will find hands there ready to be set to work. A colony is formed. They change somewhat the mode of culture; they form a path to the highway, by which the mail passes; they import and export; construct a church, a school-house, etc., etc. In a word, the power of the colonists is augmented by the very fact of their proximity, and to such a degree as to exceed, to an incalculable extent, the sum of their isolated and individual forces; and this is the motive which has attracted them towards each other.

But it may be said that every man for himself is a frigid maxim, which all the reasoning and paradoxes in the world cannot render otherwise than repugnant; that it smells of egotism a mile off, and that egotism is more than an evil in society, being itself the source of most other evils.

Now, listen a little, if you please.

If the maxim every man for himself is understood in this sense, that it is to regulate all our thoughts, acts, and relations, that we are to find it at the root of all our family and domestic affections, as fathers, sons, brothers, husbands, friends, citizens, or rather that it is to repress and to extinguish these affections, then I admit that it is frightful, horrible, and such, that were there one man upon the earth heartless enough to make it the rule of his conduct, that man dared not even proclaim it in theory.

But will the Socialists, in the teeth of fact and experience, always refuse to admit that there are two orders of human relations—one dependent on the sympathetic principle, and which we leave to the domain of morals,—another springing from self-interest, and regulating transactions between men who know nothing of each other, and owe each other nothing but justice,—transactions regulated by voluntary covenants freely adjusted? Covenants of this last species are precisely those which come within the domain of Political Economy. It is, in truth, no more possible to base commercial transactions on the principle of sympathy, than it is to base family and friendly relations on self-interest. To the Socialists I shall never cease to address this remonstrance: You wish to mix up two things which cannot be confounded. If you were fools enough to wish to confound them, you have not the power to do it. The blacksmith, the carpenter, and the labourer, who exhaust their strength in rude avocations, may be excellent fathers, admirable sons; they may have the moral sense thoroughly developed, and carry in their breasts hearts of large and expansive sympathy. [p342] In spite of all that, you will never persuade them to labour from morning to night with the sweat of their brow, and impose upon themselves the hardest privations, upon a mere principle of devotion to their fellow-men. Your sentimental lectures on this subject are, and always will be, powerless. If, unfortunately, they could mislead a few operatives, they would just make so many dupes. Let the merchant set to work to sell his wares on the principle of Fraternity, and I venture to predict that, in less than a month, he will see himself and his children reduced to beggary.

Providence has done well, then, in giving to the social state very different guarantees. Taking man as we find him,—sensibility and individuality, benevolence and self-love being inseparable,—we cannot hope, we cannot desire to see the motive of personal interest universally eradicated—nor can we understand how it could be. And yet nothing short of this would be necessary in order to restore the equilibrium of human relations; for if you break this mainspring of action only in certain chosen spirits, you create two classes,—scoundrels whom you thus tempt to make victims of their fellow-men—and the virtuous, for whom the part of victims is reserved.

Seeing, then, that as regards labour and exchanges, the principle each for himself must inevitably have the predominance as a motive of action, the marvellous and admirable thing is, that the Author of all should have made use of that principle in order to realize, in the social order, the maxim of the advocates of Fraternity, each for all. In His skilful hand the obstacle has become the instrument. The general interest has been intrusted to personal interest, and the one has become infallible because the other is indestructible. To me it would seem that, in presence of these wondrous results, the constructors of artificial societies might, without any excess of humility, acknowledge that, as regards organization, the Divine Architect has far surpassed them.

Remark, too, that in the natural order of society, the principle of each for all, based upon the principle of each for himself, is much more complete, much more absolute, much more personal, than it would be in the Socialist and Communist point of view. Not only do we work for all, but we cannot realize a single step of progress without its being profitable to the Community at large. (See chapter x., and ante, chapter xi.) The order of things has been so marvellously arranged, that when we have invented a new process, or discovered the liberality of nature in any department—some new source of fertility in the soil, or some new mode of [p343] action in one of the laws of the physical world,—the profit is ours temporarily, transiently, so long as to prove just as a recompense, and useful as an encouragement,—after which the advantage escapes from our grasp, in spite of all our efforts to retain it. From individual it becomes social, and falls for ever into the domain of the common and the gratuitous. And while we thus impart the fruits of our progress to our fellow-men, we ourselves become participators in the progress which other men have achieved.

In short, by the rule each for himself, individual efforts, reinforced and invigorated, act in the direction of each for all, and every partial step of progress brings a thousand times more to society, in gratuitous utility, than it has brought to its inventor in direct profits.

With the maxim each for all no one would act exclusively for himself. What producer would take it into his head to double his labour in order to add a thirty-millionth part to his wages?

It may be said, then, why refute the Socialist aphorism? What harm can it do? Undoubtedly it will not introduce into workshops, counting-rooms, warehouses, nor establish in fairs and markets, the principle of self-sacrifice. But then it will either tend to nothing, and then we may let it sleep in peace, or it will bend somewhat that stiffness of the egotistical principle, which, excluding all sympathy, has scarcely right to claim any.

What is false is always dangerous. It is always a dangerous thing to represent as detestable and pernicious an eternal and universal principle which God has evidently destined to the conservation and advancement of the human race; a principle, I allow, as far as motive is concerned, which does not come home to our heart, but which, when viewed with reference to its results, astonishes and satisfies the mind; a principle, moreover, which leaves the field perfectly free to the action of those more elevated motives which God has implanted in the heart of man.

But, then, what happens? The Socialist public adopts only one-half the Socialist maxim—the last half, all for each. They continue as before to work each for himself, but they require, over and above, that all should work for them.

It must be so. When dreamers desired to change the grand mainspring of human exertion, by substituting fraternity for individualism, they found it necessary to invent a hypocritical contradiction. They set themselves to call out to the masses,—“Stifle self-love in your hearts and follow us; you will be rewarded for it [p344] by unbounded wealth and enjoyment.” When men try to parody the Gospel, they should come to a Gospel conclusion. Self-denial implies sacrifice and pain—self-devotion means, “Take the lowest seat, be poor, and suffer voluntarily.” But under pretence of abnegation to promise enjoyment; to exhibit wealth and prosperity behind the pretended sacrifice; to combat a passion which they brand with the name of egotism by addressing themselves to the grossest and most material tendencies;—this is not only to render homage to the indestructible vitality of the principle they desire to overthrow, but to exalt it to the highest point while declaiming against it; it is to double the forces of the enemy, instead of conquering him; to substitute unjust covetousness for legitimate individualism; and, in spite of all the artifice of a mystical jargon, to excite the grossest sensualism. Let avarice answer this appeal.69

And is that not the position in which we now are? What is the universal cry among all ranks and classes? All for each. In pronouncing the word each, we are thinking of ourselves, and what we ask is to have a share which we have not merited, in the fruits of other men’s labour. In other words, we systematize spoliation. No doubt, spoliation, simple and naked, is so unjust that we repudiate it; but, by dint of the maxim all for each, we allay the scruples of conscience. We impose upon others the duty of working for us, and we arrogate to ourselves the right to enjoy the fruits of other men’s labour. We summon the State, the law, to impose the pretended duty, to protect the pretended right, and we arrive at the whimsical result of robbing one another in the sacred name of Fraternity. We live at other men’s expense, and attribute heroism to the sacrifice. What an odd, strange thing the human mind is! and how subtle is covetousness! It is not enough that each of us should endeavour to increase his share at the expense of his fellows, it is not enough that we should desire to profit by labour that we have not performed; we persuade ourselves that in acting thus we are displaying a sublime example of self-sacrifice. We almost go the length of comparing ourselves to the primitive Christians, and yet we blind ourselves so far as not to see that the sacrifices which make us weep in fond admiration [p345] of our own virtue, are sacrifices which we do not make, but which, on the contrary, we exact.70

It is worth observing the manner in which this mystification is effected.

Steal! Oh fy, that is mean—besides it leads to the hulks, for the law forbids it. But if the law authorized it, and lent its aid, would not that be very convenient? . . . . What a happy thought! . . . .

No time is lost in soliciting from the law some trifling privilege, a small monopoly, and as it may cost some pains to protect it, the State is asked to take it under its charge. The State and the law come to an understanding to realize exactly that which it was their business to prevent or to punish. By degrees the taste for monopolies gains ground. No class but desires a monopoly. All for each, they cry; we desire also to appear as philanthropists, and show that we understand solidarity.

It happens that the privileged classes, in thus robbing each other, lose at least as much by the exactions to which they are subject, as they gain by the contributions which they levy. Besides, the great body of the working classes, to whom no monopolies can be accorded, suffer from them until they can endure it no longer. They rise up, and cover the streets with barricades and blood; and then we must come to a reckoning with them.

What is their demand? Do they require the abolition of the abuses, privileges, monopolies, and restrictions under which they suffer? Not at all. They also are imbued with philanthropy. They have been told that the celebrated apophthegm all for each is the solution of the social problem. They have had it demonstrated to them over and over again that monopoly (which in reality is only a theft) is nevertheless quite moral if sanctioned by law. Then they demand . . . . What? . . . . Monopolies! They also summon the State to supply them with education, employment, credit, assistance, at the expense of the people. What a strange illusion! and how long will it last? We can very well conceive how all the higher classes, beginning with the highest, can come to demand favours and privileges. Below them there is a great popular mass upon whom the burden falls. But that the people, when once conquerors, should take it into their heads to enter into the privileged class, and create monopolies for themselves at their own expense; that they should enlarge the area of abuses in order to live upon them; that they should not [p346] see that there is nothing below them to support those acts of injustice: this is one of the most astonishing phenomena of our age, or of any age.

What has been the consequence? By pursuing this course, Society has been brought to the verge of shipwreck. Men became alarmed, and with reason. The people soon lost their power, and the old spread of abuses has been provisionally resumed.

The lesson, however, has not been quite lost upon the higher classes. They find that it is necessary to do justice to the working class. They ardently desire to succeed in this, not only because their own security depends upon it, but impelled, as we must acknowledge, by a spirit of equity. Of this I am thoroughly convinced, that the wealthier classes desire nothing more than to discover the solution of the great problem. I am satisfied that if we were to ask the greater part of our wealthy citizens to give up a considerable portion of their fortune in order to secure the future happiness and contentment of the people, they would cheerfully make the sacrifice. They anxiously seek the means of coming (according to the consecrated phrase) to the assistance of the labouring classes. But for that end on what plan have they fallen! . . Still the communism of monopolies; a mitigated communism, however, and which they hope to subject to prudential regulation. That is all—they go no farther. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [p347]

XIII.
RENT.
71


TOC

If, with an increase in the value of land, a corresponding augmentation took place in the value of the products of the soil, I could understand the opposition which the theory I have explained in the present work (chap. ix.) has encountered. It might be argued, “that in proportion as civilisation is developed the condition of the labourer becomes worse in comparison with that of the proprietor. This may be an inevitable necessity, but assuredly it is not a law of harmony.”

Happily it is not so. In general those circumstances which cause an augmentation of the value of land diminish at the same time the price of landed produce. . . . . Let me explain this by an example.

Suppose a field worth £100 situated ten leagues from a town. A road is made which passes near this field, and opens up a market for its produce. The field immediately becomes worth £150. The proprietor having by this means acquired facilities for improvement and for a more varied culture, then increases the value of the land, and it comes to be worth £200.

The value of the field is now doubled. Let us examine this added value—both as regards the question of justice and as regards the utility which accrues, not to the proprietor, but to the consumers of the neighbouring town.

As far as concerns the increase of value arising from ameliorations which the proprietor has made at his own cost, there can be no question. The capital he has expended follows the law of all capital.

I venture to say the same thing of the capital expended in [p348] forming the road. The operation is more circuitous, but the result is the same.

In point of fact, the proprietor has contributed to the public expenditure in proportion to the value of his field. For many years he contributed to works of general utility executed in more remote parts of the country, and at length a road has been made in a direction which is profitable to him. The gross amount of taxes which he has paid may be compared to shares taken in a Government enterprise, and the annual augmentation of rent which he derives from the formation of this new road may be compared to dividends upon these shares.

Will it be said that a proprietor may pay taxes for ever, without receiving anything in return? . . . . But this just comes back to the case we have already put. The amelioration, although effected by the complex and somewhat questionable process of taxation, may be considered as made by the proprietor at his own cost, in proportion to the partial advantage he derives from it.

I have put the case of a road. I might have cited any other instance of Government intervention. Security, for example, contributes to give value to land, like capital, or labour. But who pays for this security? The proprietor, the capitalist, the labourer.

If the State expends its revenue judiciously, the value expended will reappear and be replaced, in some form or other, in the hands of the proprietor, the capitalist, or the labourer. In the case of the proprietor, it must take the form of an increase in the value of his land. If, on the other hand, the State expends its revenue injudiciously, it is a misfortune. The tax is lost; and that is the taxpayer’s look-out. In that case, there is no augmentation of the value of the land, but that is no fault of the proprietor.

But for the produce of the soil thus augmented in value, by the action of Government and by individual industry, do the consumers of the neighbouring town pay an enhanced price? In other words, does the interest of the £100 become a charge on each quarter of wheat which the field produces? If we paid formerly £15 for it, shall we now be obliged to pay more than £15? That is an interesting question, seeing that justice and the universal harmony of interests depend on its solution.

I answer boldly, No.

No doubt the proprietor will now get £5 more (I assume the rate of interest to be 5 per cent.); but he gets this addition at the expense of nobody. On the contrary, the purchaser will derive a still greater profit. [p349]

The field we have supposed having been formerly at a distance from the market, was made to produce little, and on account of the difficulty of transit what was sent to market sold at a high price. Now, production is stimulated, and transport made cheaper, a greater quantity of wheat comes to market, and comes there at less cost, and is sold cheaper. Whilst yielding the proprietor a total profit of £5, its purchaser, as we have already said, may realize a still greater profit.

In short, an economy of power has been realized. For whose benefit? For the benefit of both of the contracting parties. According to what law is this gain distributed? According to the law which we have described in the case of capital, seeing that this augmentation of value is itself capital.

When capital increases, the portion falling to the proprietor or capitalist increases in absolute value and diminishes in relative value; while the portion falling to the labourer (or consumer) increases both in absolute and relative value. . . . .

Observe how this takes place. In proportion as civilisation advances, lands which are situated near populous centres rise in value. Productions of an inferior kind in such places give way to productions of a superior description. First of all, pasture gives way to cereal crops, then cereal crops give way to market gardening. Products are brought from a greater distance at less cost, so that (and this in point of fact is incontestable) meat, bread, vegetables, even flowers, are sold in such places cheaper than in neighbourhoods less advanced, although manual labour costs more. . . . . . .

 

 

LE CLOS-VOUGEOT.72

 

 . . . . Services are exchanged for services. Frequently services prepared beforehand are exchanged for present or future services.

The value of services is determined not by the labour they exact or have exacted, but by the labour which they save.

Now, in point of fact, human labour goes on constantly improving in efficiency.

From these premises we may deduce a phenomenon which is very important in social economy, which is, that in general anterior labour loses in exchange with present labour.

Twenty years ago I manufactured a commodity which cost me [p350] 100 days’ labour. I propose an exchange, and I say to the purchaser, Give me in exchange a thing which cost you also 100 days’ labour. Probably he will be in a situation to make this reply, That great progress has been made in twenty years. What you ask 100 days’ labour for can be made now in 70 days. I don’t measure your service by the time it has cost you, but by the service it renders me. That service is equal only to 70 days’ labour, for in that time I can render it to myself, or find one who will render it to me.

The consequence is that the value of capital goes on continually deteriorating, and that anterior labour and capital are not so much favoured as superficial economists believe.

Apart from tear and wear, there is no machine a little old but loses value, for the single reason that better machines of the same kind are made nowadays.

The same thing holds in regard to land. There are few soils, to bring which into their present state of culture and fertility, has not cost more labour than would be necessary now with our more effective modern appliances.

This is what happens in the usual case, but not necessarily so.

Anterior labour may, at the present day, render greater services than it did formerly. This is rare, but it sometimes happens. For example, I store up wine which cost me twenty days’ labour to produce. Had I sold it immediately, my labour would have yielded me a certain remuneration. I have preserved my wine; it has improved; the succeeding vintage has failed; in short, the price has risen, and my remuneration is greater. Why? Because I render a greater amount of service—my customers would have greater difficulty in procuring themselves such wine than I myself experienced—I satisfy a want which has become greater, more felt, etc. . . . .

This is a consideration which must always be looked to.

There are a thousand of us. Each has his piece of land, and clears it. Some time elapses, and we sell it. Now it so happens that out of 1000 there are 998 who never receive as many days’ present labour in exchange for their land as it cost them formerly; and this just because the anterior labour, which was of a ruder and less efficient description, does not render as great an amount of service comparatively as present labour. But there are two of the proprietors whose labour has been more intelligent, or, if you will, more successful. When they bring their land to market, they find that it is capable of rendering service which cannot be rivalled. Every man says to himself, It would cost me a great [p351] deal to render this service to myself, therefore I must pay well for it, for I am quite certain that it would cost me more to obtain what I am in quest of by my own exertions.

This is just the case of the celebrated vineyard, the Clos-Vougeot, and it is the same case as that of the man who finds a diamond, or possesses a fine voice, or other personal advantages or peculiarities, etc. . . . . . . . . . . . . . . . . . . . . . .

 

In my neighbourhood there is much uncultivated land. A stranger asks, Why not cultivate this field? Because the soil is bad. But here, alongside of it, you have another of the same quality which is cultivated. To this objection the native has no answer.

Was he wrong in the first answer he gave, namely, It is bad?

No. The reason which induces him not to clear new fields is not that they are bad, for there are excellent fields which also remain uncultivated. His reason is that it would cost him more to bring this field into the same state of cultivation as the adjoining field which is cultivated, than to buy the latter.

Now, to any thinking man this proves incontestably that the field has no intrinsic value.

(Illustrate this idea by considering it in various points of view.)73 [p352]