Socialism vs. Single Tax
A Verbatim Report of a Debate held at Twelfth Street Turner
Hall,
Chicago, December 20th,
1903
PDF version of original
pamphlet
Published by CHARLES H. KERR & COMPANY (Co-Operative) 56 Fifth
Avenue, Chicago
With Portraits of Karl Marx, Henry George, and the Six
Debaters (in the original)
The Chairman (Hon. Frank W. Jones,
ex-Senator of Massachusetts):
Ladies and gentlemen - It is
entirely unexpected to me to have the
honor and the pleasure of presiding at this debate today. I came over
as a spectator because I saw in a newspaper an announcement that you
were to discuss the question of Socialism and the Single Tax. We have
six speakers and these speakers are to be allowed thirty minutes each.
The affirmative will be by the Socialist speaker and he will be
controverted in a thirty-minute argument by the Single Tax speaker, and
the Socialist will have ten extra minutes at the close of the series of
thirty-minute addresses in which to close the debate, and we propose to
keep closely to the time. I now have the pleasure of introducing to you
the first speaker in the affirmative, Mr. Untermann, who represents the
Socialist side.
Ernest
Untermann:
The subject of this debate is
formulated in the following resolutions:
"Resolved, That it is to the interest of the working class to take up
the propaganda of Socialism rather than that of the Single
Tax."
Mr. Dinkelspiel, the funny philosopher of Hearst's Chicago American,
stated one of his great half truths when he said : "It is easy to be a
philosopher; all you have to do is to think of something that somebody
else said and then sit down and say something different." We Socialists
say something different from the Single Taxers, but we gladly waive our
claim to be included among Mr. Dinkelspiel's philosophers. The Single
Taxers, on the other hand, can not lay any claim to be included among
the distinguished Dinkelspielers, because they have never said anything
else, anything different, about land reform ever since Moses, the first
land reformer, laid down the rules for his followers. Numerous Single
Tax ideas are found in the Old Testament, and the same Old Testament
also shows that land is not the only means of exploitation. For there
was free land galore in Jacob's time, yet he worked fourteen years for
Laban in order to get what the people of that time considered as means
of production, two
wives.
In spite of the numerous stringent rules which forbade land speculation
during the time following the patriarchal age, nevertheless the great
mass of the Jews and of all ancient nations believing in the principle
of private ownership of the means of production were very nearly
landless. Periodical redistribution of land was then resorted to as a
means of relieving the conditions, yet no matter how often it was tried
it always proved futile. To demonstrate this let me mention a few
conspicuous examples:
In 594 B. C. Solon of Athens forbade mortgages on farms and landed
property. He fixed a maximum allowance of land ownership, and thus he
freed the farmers by giving them land, and yet he lived to see these
same farmers whom he freed again landless, and during the time of the
Tyrants the great mass of the Athenian people were again without
land.
Rome started with common ownership of land, took up private ownership,
tried various schemes for freeing the land and ended in the morass of
immense latifundian estates tilled by slave
labor.
The early Christian Church denounced speculation and monopoly of land,
yet that did not prevent the Catholic Church from becoming the great
feudal lord of the middle
ages.
The Reformation armed the peasants of middle Europe against the feudal
lords, yet the freed peasants very soon groaned under the load of
mortgage and tenantry.
From William the Conqueror to Wat Tyler, from Wat Tyler to Cromwell,
from Cromwell to the Chartist movement, from the Chartist movement to
the Irish League - these are some of the stages in the attempt to free
the land, for the English people, and they have not got it
yet.
The French revolution freed the peasants by giving them land, only to
rob them of their rights of common and their secular rights; to load
them with a burden of taxation, to deliver them into the hands of land
sharks and money sharks, and to force them to compete with their
primitive tools against the great landlords and their mighty
machines.
The United States gave away millions of acres to settlers, with
practically no compensation, and yet today of 15,963,965 private
families as many as 11,236,423, live in mortgaged or rented
homes.
In Russia when it was found that after the freeing of the serfs from
feudal rule so many peasants had become landless that there was
considerable falling off in taxation, the czar resorted to the measure
of declaring the land common property, making the commune liable for
the debts of its members, and apportioning out to these members land in
order that they might all have an equal opportunity - to pay taxes.
When these peasants showed their ingratitude at being so freed and
revolted, they very soon found themselves face to face with "freedom"
in the shape of the knouts and the swords of the Cossacks. The
ungrateful rebels were whipped publicly and sent to the mines of
Siberia. In the United States the capitalists do not yet send us to
Alaska when we rebel against their freedom. They may do that by and by,
when, in accordance with Senator Spooner's suggestion, the President of
the United States will be elected for a term of twenty years, and when
the Dick military bill will have turned this country into a military
despotism. As yet the capitalists are satisfied with sending us to the
free land in the free bull pen (laughter), when we refuse to yield them
profits. (Applause.)
There in the bull pen we will have plenty of leisure to consider the
advantages of free competition with scabs and of the freedom that is
thrust upon us at the point of the bayonet. The Single Taxers want to
give us free land instead of the bull pen, so that we may live at the
lowest margin of subsistence and pay to the capitalist government, as
does the Russian peasant, all that we produce above that margin. And if
then we rebel against that capitalist government the same as the
Russian peasants, we will go back from the free land to the free bull
pen. (Laughter.) It may be necessary for some of our Single Tax friends
to go through some such experience in order to find out that capitalist
oppression under the Single Tax is little, if any, different from
capitalist oppression under capitalism. (Applause.) These short hints
may suffice to demonstrate to you that there are more things between
human freedom and free land than are dreamed of in the Single Tax
philosophy.
If in spite of thousands of years of earnest effort to free the land,
you still leave millions of the oppressed landless, there must be some
fundamental mistake which all forms of land reform have overlooked. Now
I do not claim that because those reforms failed to accomplish what
they were designed to accomplish the Single Tax for that reason will
also fail to accomplish that now, but I have a right to ask: What was
it that made all those land reforms futile, and does the Single Tax now
go to the bottom of the matter? If we put the question in this way we
at once come to the parting of the ways between the Single Tax and
Socialism.
Before the modern Single Taxer ever thought of the Single Tax the
Socialist had already analyzed it and rejected it as absolutely
inadequate. The early sessions of the International Workingmen's
Association had taken it up and dropped it. As early as July 21 and 22,
1872, the English branch of the International Workingmen's Association
met at Nottingham, England, and at that congress the Single Tax idea,
coupled with money reform, a kind of cross between the Single Tax and
Populism, was already used to combat the Socialist program, the
Socialization of land and all the means of production and
distribution.
As early as 1853, Lassalle, the Socialist leader in Germany at that
time, writing to Marx about Ricardo's theory of ground rent, said that
he regarded it as the "Most eminent communist feat." And in 1863, in
writing to Rodbertus, a German economist, he referred to the idea of
abolishing ground rent by levying a tax on it, and asked: "How can that
be done? Very simple; simply by levying a tax which will leave free
the land of the lower classes, but tax all the margin of cultivation
out of the land of the higher classes." Yet Lassalle never indulged in
any illusions as to the efficacy of that Single Tax idea for the
emancipation of the working class. In the first place, he knew that it
would not be applicable, and could not be enacted in his time. In the
second place, he recognized that this very Ricardian theory of ground
rent was based on the distinction that the poorest land, while it might
not yield any ground rent, still might yield enormous profits on
capital. In other words, he saw plainly that the abolition of the
landlords would not abolish the industrial capitalist, hence would not
abolish capital and relieve wage
labor.
But the world rolled on, and suffering humanity patiently waited for
the Moses that was to lead it out of the capitalist Egypt. And in 1880
a new star appeared on the horizon with the once brand new idea of
freeing the land by levying a single tax on it. That star was Henry
George. (Applause.) He unreservedly accepted the Ricardian theory of
ground rent, and he fell so in love with it that he built on it his
Single Tax scheme which he magnified into a beautiful philosophy that
would bring down justice and emancipation from the clouds. He entirely
overlooked the fact that today the agricultural classes are no longer
the essential element in production, but that the essential element
today is the great capitalist class with its modern machine production
and its great army of dependent wage workers.
(Applause.)
But thirty-two years before Henry George's "Progress and Poverty" was
written, and fifteen years before Lassalle wrote that letter to
Rodbertus, a twin star had arisen in the proletarian firmament - Karl
Marx and Frederick Engels.
(Applause.)
They did not regard the Ricardian theory of ground rent as the "most
eminent Communist feat." Much less did they magnify it into a fundament
for a new world philosophy. They recognized that the Ricardian theory
of ground rent dealt simply with a phenomenon which was in no way
calculated to offer a solution of the social problem. They recognized
that it was merely a symptom that pointed to a deeper cause. And
investigating that cause, they found the key which opened all the
secrets of capitalist production and history: The Economic
Interpretation of
History.
In 1848 Marx and Engels expressed the greatest historical truth when
they said that "The history of all societies based on private property
is the history of class struggles." And when Marx in his introduction
to his "Critique of Political Economy" said: "The economic forces of
production form the fundament on which are built up human laws and from
which arise all political, religious and moral ideas," he took
politics, law, religion and ethics down from the clouds and placed them
on a scientific foundation that has not been shaken since. All the
leading economists of the world, capitalist and all, today use the
Marxian method of investigation, although they very seldom give him
credit for it.
(Applause)
The Marxian Conception of History clearly shows that great historical
changes are not brought about by the magnificent personalities of
certain great and inspired men. It shows that great historical changes
flow from changes in the economic basis and that political phenomena
are determined by those changes in the economic basis; that the
thoughts of men are reactions caused by natural and social environment,
in the same way that chemical changes in the stomach suggest the
thought that the individual must
eat.
Summed up, the Socialist philosophy says in so many words that the
economic foundation of society determines the form of human thought and
activity; that a society based on production for private profit
consists of classes with antagonistic interests. Such society is
subject to certain laws. In following those laws, economic antagonisms
are gradually intensified by the concentration of wealth and the means
of production in the hands of great capitalists and the creation of a
large body of dependent workers who have no other means of existence
but the sale of their manual or intellectual labor power to the owners
of the means of production. One class after another rises through
changes in the economic system, becomes politically supreme, and uses
its political power for the maintenance of its rule against all other
classes.
Today in the present capitalist system we distinguish three great
economic categories : Above is the great capitalist class, the owners
of the great machinery of production. At the bottom of society, the
great mass of the wage working class, the dependent proletarians. In
between them there is a so-called middle class, which is partly
proletarian and partly capitalist in character. So far as, with the
minority of that middle class, their capitalist interests prevail over
their proletarian interests, to that extent they belong as parasites in
the capitalist class. But the great mass of the middle class today is
practically reduced to the level of the proletarian wage workers, and
their economic and political interests are on the side of the wage
workers. Between the great capitalist class and the working class there
gradually arises a struggle for the conquest of the political powers.
Owing to the disappearance of the capitalist class as an essential
factor in production, that struggle will end in the conquest of the
political power by the working class. The victory of the working class
will abolish all classes and all class antagonisms, because there is no
lower class below the working class whom they might subjugate. The
historical force, the historical party, that will bring about the
victory of the working class is the International Socialist Party. It
is international because exploitation is world wide and cannot be
abolished in any single country separately. Therefore the workers of
the world must unite to abolish exploitation all over the world.
(Applause.)
I hope I shall not hear the hackneyed and irrelevant objection that I
am preaching class hatred. The enunciation of the doctrine of the class
struggle is no more an appeal to class hatred than the enunciation of
the doctrine of the struggle for existence by Darwin was an appeal to
species hatred. When I say to a man: "A leech is sucking your blood," I
am not telling him to hate that leech. He will hate it anyway and get
rid of it. And when I say to the working class : "The capitalists are
parasites who are sucking your blood," I am not telling them to hate
those parasites. They hated them before I told them. I am simply
telling them not to vote either for the capitalist parasites or for
those parasites of parasites, the capitalist politicians. I am advising
the working class to unite politically against the capitalist class and
to abolish all class antagonisms and causes for class hatred by voting
for the party of their class, the Socialist Party.
(Applause.)
Equipped with the Marxian philosophy of history, we are at once enabled
to point out why former reforms were futile and failed, and why the
Single Tax is inadequate to meet the present problem. First of all, we
say, then, that whoever wants to alleviate the suffering of humanity
must have a comprehensive grasp on the history of humanity. He must
also take into account the economic classes. He must furthermore
recognize that the moving force of history is not sentimentalism but
definite, hard and cruel material laws by which the great mass of
humanity is swayed.
(Applause.)
A
hasty glance at the history of ground rent suffices to show that
ground rent has gone through many different phases and forms, and
therefore the Ricardian theory of ground rent is not applicable
indiscriminately to any and all historical periods. If I had time I
could easily show that it falls far short of meeting the problem, if
applied to the present time. Before the Single Taxer therefore can
apply his philosophy he must first of all know that the particular form
of ground rent which he wishes to abolish is the product of a definite
historical period. What does he mean by ground rent, and what does he
mean by land values that he wants to tax? Does he mean the land values
that arise simply out of the speculative increase of land price? Does
he mean the land values that arise out of improvements put into the
soil? Does he mean land values that change with the various crops that
you put into the soil? I hope the gentleman on the other side will not
fail to answer these questions, because it is important that we should
know. Or do they mean that, together with those speculative and
agricultural land values, they will also take what is produced on the
land by the aid of capital? In the first three cases I can show that
the Single Tax will fail to accomplish what the Single Taxers claim for
it, and in the fourth case the Single Tax would not be the Single Tax.
(Applause.)
In regard to the first three forms of ground rent, I may say in general
that this is not the essential form of exploitation at all. The
essential (form of exploitation is today carried on in giant industries
which are organized for the exploitation of wage labor. (Applause).
How it is that capitalist exploitation exceeds the exploitation through
land may be shown by this simple example which I shall illustrate by
round figures. In ~goo the total value of industrial products amounted
to about twelve billion dollars. The wage workers employed in those
industries received in wages two billion dollars, leaving ten billion
dollars in the hands of the exploiters. In rent those wage workers paid
from their two billion dollars one billion dollars to the landlords.
The wage workers could have afforded much better to lose that one
billion dollars of rent than to lose that ten billion dollars of
profit. (Applause.) Now, do not accuse me of being unjust to the poor
capitalist because I am not counting what he pays out for raw materials
and incidental expenses, because in that case I am going to show you by
statistical figures that at no time in the history of the United States
did the capitalists have enough money to pay the wages and pay for the
raw material in one single year, let alone pay profits or
dividends.
A tax on speculative land values, on the other hand, does not touch the
grand industrial combinations. The steel trust, the oil trust, the egg
trust, the fruit trust, the packing trust, all these great trusts own
practically no land capital compared with the value of their industrial
capital. (Applause).
Census Bulletin No. 122, dated December 30, 1901, enumerates 183
industrial combinations whose total capital amounted to $1,432,804,920.
The total land capital of those combinations amounted to only
$152,266,753, or one-ninth of the total capital used for exploitation.
Tax every cent of land value out of their hands and they would still
have eight-ninths left to continue exploitation. Nor would they pay
that tax if it were imposed on them, for having in their control all
the production and distribution they would shift the Single Tax in the
form of prices to the shoulders of the consumer. (Applause.) We
Socialists say that the Single Tax is simply a fiscal measure urged
with great zeal by the Single Taxers for the purpose of taxing
themselves, and they have the nerve to come before the working class
and ask them to help them in such a suicidal policy.
(Applause.)
The Single Taxers claim that the capitalists could not continue
exploitation after the Single Tax was instituted, because the workers
would flock in droves to the free land. Perhaps they would, if they
believed the Single Taxers. But pause and consider. If you leave these
great industries and go out on the free land with bare fists to
produce, you will throw humanity back into the primitive stage of
production and rob it of thousands of years of evolutionary effort by
leaving these great machines, your product, in the hands of the
exploiters. (A voice, "That's right.") If these machines cannot be
used, then you must return to the primitive stage of production,
without the hardihood of the primitive savage.
(Applause.)
And how would the great mass of people in the United States, the most
numerous class - the small peasantry - be benefited by the Single Tax?
If the Single Tax is a tax on improvements also, then it is simply a
tax which puts a premium on depreciation and decreased production,
because no one will care to put any improvement on the land when the
whole margin of cultivation is taxed out of him. So the Single Tax, as
far as the small farmers are concerned, means simply an increase of
taxation for them, and I recall that Henry George claims himself that
they would have to pay more tax. It is true he claims that there would
be many benefits they would get from the Single Tax, but I have shown
you that instead of being benefited they would be exploited still more.
To rush to the country is to give up the amenities and productive
advantages of association. In that case many workers would prefer to
work for wages rather than to starve on free
land.
Under the Single Tax the farming class in the United States would be
transformed simply into tenants of a capitalist government. We want to
oust the capitalist government, and in order to oust that capitalist
government we need a political party of the workers. But the Single
Taxers do not believe in a separate political party for the working
class, but they have a very peculiar affinity for the democratic donkey
who uses his political power to crush labor when it strikes for higher
wages.
The capitalist system will fall in obedience to the great economic and
political laws to which it is subject, but above its ruins will tower
the giant statue of labor, that true God of Liberty who will dethrone
that lying prostitute of the dollar almighty, the capitalist Goddess of
Liberty. (Applause.) The victory of the working class will not only
free the men, but also the better half of humanity, the women.
(Applause.) Socialism will write a new Declaration of Independence
which will read: "All men and women are born equal and have an equal
right to life, liberty and
happiness."
The Chairman:
You have listened to a most scholarly presentation of the Socialist
question by our friend Mr. Untermann, which has given us great
intellectual pleasure and profit. We have with us to open the debate on
the side of the Single Tax one of the most eloquent and able advocates
of that question in the United States, and it gives me pleasure to
present to you Mr. Louis F. Post.
(Applause.)
Louis F. Post
Ladies and Gentlemen - I am going to move to strike out of the record
those complimentary remarks of the
chairman,
The Chairman: The motion is not in order.
(Laughter.)
Mr. Post:
I make the motion now, because maybe the audience will want to make it
when I am through.
(Laughter.)
Now, ladies and gentlemen, this question, correctly read by my
adversary who opened on the other side, invites us to consider if it is
to the interest of the working classes to take up the propaganda of
Socialism in preference to that of the Single Tax. Well, if we should
ask confirmed Socialists whether it is to the interest of the working
classes to take up Socialism instead of the Single Tax, of course they
would say yes. If we should ask confirmed Single Taxers if it is to the
interest of the working classes to take up Socialism instead of the
Single Tax, of course they would say no. So there is absolutely no use
in our debating this question before Socialists and Single Taxers. They
have made up their minds. The men and women we must address are the
working classes. Do they consider it to their best interest to take up
Socialism in preference to the Single Tax? Unless we can convince them,
our debate either way is of no great moment. It is only as what we say
may go out to and influence the working classes that it can be of any
real benefit.
Now, the working classes, as my friend has already stated, do not
include merely the men and women who work for hired wages, who work as
hired men or hired women; but a very large proportion, as he says, of
the middle class also really belong to the working classes, because
their interests are the same as the interests of the working classes.
To that extent, of course, we agree. So we are addressing a great mass
of people, some of whom are in what we call distinctively the working
class, and others of whom are in the middle class, but all of whom
really belong in the working class. All of them have identical
interests so far as the interests of labor are concerned. It is the
interests of labor against the interests of exploiters of labor - that is
the real question that we confront. (A voice, "Hear,
hear.")
My friend observes that it is rather nervy on the part of the Single
Taxers to propose the Single Tax philosophy to the working classes as a
remedy for their condition. It may be, ladies and gentlemen, I don't
know, I would rather leave that to the working classes to decide than
to my good friends who represent the Socialist side of this question.
But if that is nervy, if it is nervy for Single Tax men to propose
their remedy to the working classes, what shall we say of the nerve of
my good friend who comes upon this platform and tries to convince the
working classes that figures which are cooked up in the figure-cooking
factory at Washington are worthy to be presented anywhere to an
intelligent audience? (Applause.) I am not going to waste any time in
discussing figures purporting to show certain facts. Figures are not
enough in themselves; you must mix common sense with them. Even if
those figures about twelve billions and two billions were true, that
there were twelve billion dollars' worth of product and two billion
dollars of it paid as wages to labor, the question arises, What labor?
Hired manual labor alone. That is the only kind that is meant. What
about self-employed laborers? What about the labor of the self-employed
American farmer, of which there is no record at all? Those other
figures, the ten billion balance, how far do they go to compensate men
who are not hired workers? We are not told by the figure-cooking
factory at Washington. The figures are utterly unreliable to begin
with, as a matter of fact; and if they were true, my friend's
application of them has no bearing and really no value with reference
to this discussion.
Now, I say it is the working classes that we must address on either
side - the working classes that are not yet convinced either that
Socialism or Single Tax is what they want. This is an important
question. It is a vitally important question to you, my friends of the
working class, because the time is rapidly coming when labor strikes
will cease to be effective. They have almost ceased to be effective
now. (Applause.) There is only one place where labor can strike and
strike effectively, and I think my friend will agree with me that that
place is at the ballot box.
(Applause.)
Whether you are inclined toward Socialism, or whether you are inclined
toward Single Tax, the place you have got to strike at is the ballot
box. And whether you shall strike there for the Single Tax or for
Socialism is a vital question. I do not claim to be a prophet, but I do
believe that the real contest, at least in this country, the first
really great labor contest at the ballot box is going to be between the
principle of the Single Tax on one side and the principle of Socialism
on the other. (Applause.) I do not care what the names may be. It may
not be called the Single Tax on the one side, it may not be called
Socialism on the other; but the underlying principles of those opposing
schools are the principles which we shall have to fight over at the
ballot box. So, my friends of the working classes, it is for you to
consider, and to consider very seriously, which side you will vote with
when this question comes up for your decision. It is true that in many
respects we have views in common. Socialism and the Single Tax touch at
many points. But fundamentally they are apart. In principle they are
hostile, and the working classes must so consider
them.
Now, what is the issue that we are to meet? I am going to assume that
the working classes want what's right; that they want what is fair
between man and man. My friend has said that sentiment does not move
the world, that nothing but materialistic conditions, nothing but
materialistic aspirations moves the world. In the short run that is
often true. We are going through a period now when it seems to be true.
But he who reads history and reads it with an open mind, can see that
in the long run the greatest force in human society throughout all
history has been the appeal to sentiment, the appeal to men's ideas of
the rightness and fairness of things. (Applause.) So I believe today
that the great mass of the working classes of all kinds can be appealed
to with reference to what is right. No, they do not need to be appealed
to. They are not seeking what is wrong. The demand they are making is
for what is right. And I doubt if my friend upon the other side will
deny that fundamentally that should be the human aspiration - to reach a
condition of righteousness as between man and man, fairness as between
man and man, in our economic
life.
In the first place, then, we want to preserve the right, and to advance
farther and farther towards the right - towards
fairness.
In the next place, we want to preserve the material advances that have
been made. Some of our friends seem to imagine, as my friend has
already indicated, that what the Single Tax men are urging upon the
working classes is that they should go back to primitive conditions.
But we start out with the understanding, admit the demand of the
Socialists, that the material advances which have been secured shall be
retained. I am willing to rest our whole case upon that proposition. If
what we propose is going to get rid of the material advances already
made, we lose our case before the working classes. What the Single Tax
demands, and demands as strenuously as Socialism does, is that all
material advances that have been made shall be retained and secured. No
one proposes to send men under the Single Tax out to eat sand on free
land a thousand miles away from all civilization. (Applause.) One needs
but to read the literature of the Single Tax to see that I am not
merely stating my own opinion. I am stating the principle of the Single
Tax philosophy.
What we want is right, don't we? We want to preserve the material
advances that we have made. And we want personal liberty. Those are
three things that the working classes surely require, surely demand.
Those are three things, at any rate, that the Single Taxers demand. We
have not got them now. The working classes have not got them now. The
working classes are not fairly treated; they are not getting righteous
treatment; they are not getting the benefit of the material advances
that have been made; they do not have personal liberty. My friend can
say nothing about "bull pens" that I won't echo with all the vigor at
my command. The working classes haven't got those three things; and if
you will analyze the situation you will find that the reason they
haven't got them may be summed up in one or two
explanations.
In the first place, they are under-paid for their labor. There is no
man that works who gets the full product of his labor. I do not have to
go to Washington for statistics to prove that. All I need to do is to
point to the men who get a great deal without labor. They cannot get it
from any other source than from the men and women who do labor.
(Applause.) The working classes are not getting what they earn; they
are not getting fairness; they are not getting the best out of the
material advances of civilization, not as much as they ought to get.
They are not getting what they earn, I say. That is one of the
explanations. And they are disemployed. There is lack of employment.
You could probably sum it all up in those two things : Inadequate pay
for work, and the army of the unemployed - more men than there are jobs.
The men out of jobs compete with the men who have jobs, and so wages
are kept down.
Those are the two conditions. There is the sore: There is the diagnosis
of social conditions at present - of the social state with reference to
the working classes. Poor wages underpay; and a lack of employment
relatively to the number of people that seek to be employed. (A voice,
"How are you going to remedy
it?")
My friend, I will come to that in time. We have to proceed in order.
One step at a time, and the closer we hold to that one step at a time
the more likely we are to get at the truth. If we start with the truth,
and then try to build up from that, we are very likely to reach a true
solution. I am trying to build up from what seems to me to be the
truth.
Now,
as to the remedies of this condition of underpay and lack of labor
opportunity. The Socialist remedy in substance comes down to this -
whatever form it may be stated in - that organized society should
furnish opportunities for work; that it should do so by taking over all
the land and socializing it, as it is said, and all implements of
production, and making, so far as the large industries are concerned, a
great organized social workshop where everybody should have employment;
and then by regulating wages. That is to say, organized society shall
as a matter of fact furnish employment to all and shall regulate the
wages of all. That is what it comes down to. No matter how the
Socialist proposes to get it, no matter what steps he expects to take,
that is what it all sums up in - a great governmental workshop in which
everybody shall be employed - (applause) - I am glad to recognize by the
applause that I am stating it correctly - a great governmental workshop
with wages regulated by organized
society.
Now, that can be made to give work to all, and it can be made to give
wages to all - if the man on horseback doesn't ride in and ruin the whole
concern. (Applause.)
I am not, however, criticizing: I am comparing the two
philosophies - stating what they
propose.
On the other hand, the Single Taxers propose merely this - no matter
what their method; if their method is wrong it won't work, and it is
open to criticism; we are submitting it to your criticism - what they
are aiming at, what they are trying to get is to remove the obstacles
which prevent there being a natural demand for labor, demand not merely
from employers, but by one man of another, that natural demand which
will always keep the demand for labor in excess of the supply of men
wanting work.
(Applause.)
I am going to give you a simple and crude illustration for the purpose
of making it concrete, nothing more, simply that you may see my point
better. Suppose, under existing conditions, that for every ten men who
want to work there are only nine opportunities, only nine jobs. That
is, in a rough way, our present condition - more men than jobs. Under
that condition you can see that wages are bound to go down, for you
have got one man out of work all the time, or the equivalent of one
man, competing against the others. Ten men competing each against the
other for only nine opportunities; that is the present condition,
crudely illustrated as it may be. What the Single Tax men propose, if
their method will accomplish it - what they propose is to reverse that
and to open up opportunities so that there shall all the time be ten
jobs for every nine men: or more jobs than men. (Applause.) When you
have that condition, more opportunities for work than you have workers
offering to work, then you will have no unemployed army at any time,
and you will have wages tending all the time upward toward the full
earnings of the man. And that is the only way of determining what the
earnings of men are.
What do men want? Work? That is not what they want. They want what work
will get. What they want is food, clothing, shelter, and those things
that we call luxuries. That is what the working classes want. Why don't
they get them? They make them all. The working classes make all those
things. Why are they without them? Do they give them up voluntarily?
If they do, it is their right. But I do not believe that they give them
up voluntarily. They give them up under some coercion. What is the
coercion?
Our friend on the other side says that the coercion is the monopoly of
machinery, the monopoly of capital. Monopoly of what? Monopoly of
capital? Well, let us stop a moment and see what is meant by capital.
Is a factory capital? I suppose it is, with all its equipment of
buildings and machinery. Is the ground on which it stands capital? If
it is, then you are speaking of two entirely different things under the
same name, and may be charging to capitalism evils that result from
landlordism. Now, capital - machinery and all such things - is produced by
labor itself, by laborers. How does it get away from them? It is not a
question of the history of the past; It is a question of the present
hour, because all the capital that exists today would last but a little
while if labor ceased utilizing and maintaining it. Labor is producing
it all the time. How does it slip away? It is not enough to say that it
slips away because somebody has got it monopolized. You have to go
deeper and inquire what are the conditions under which it is
produced.
We know that labor produces all that is produced. We also know that
labor cannot create it. Then how can it produce it? Only by getting
access to the natural source from which it must come. You have got to
go to the land.
My friend is mistaken in imagining that the farm question is the land
question. He seems to think that nobody but farmers live on land. Why,
if you measure land by the demand for it and its value, we use more
land in cities than do our farmers. The mines furnish material as well
as the farms. The city furnishes sites, the great country furnishes the
highways that control industries and control commerce. The land
question is the globe question. It is the question of the ownership of
the earth. Labor has got to go to the globe for all the capital that it
produces and for all the products of that capital. The Single Taxers
put land into a category alone and make capital another category. They
say land is the natural source of labor products, and that man must
have access to it. Having that, he can make and use capital. Not having
that, he is under the control of men that you may call capitalists if
you wish, but who are really
landlords.
We have some men in Chicago that own $18,000,000 of stock in a street
car company worth $27,000,000 on the market. The plant of that company,
the machinery, etc., is worth but very little. What makes that
twenty-seven millions of value? The monopoly of the streets of Chicago,
the monopoly of the land which the streets are built upon in Chicago.
(Applause.) And yet you say that man is a capitalist. We say he is a
landlord. * You say that is capitalism. We say it is landlordism.
(Applause.)
Now, we propose to abolish landlordism, for it is landlordism that is
the base of industrial trouble. We propose to abolish landlordism. But
let me ask you to remember that "landlordism" is broader than the term
"landlord." I think I have indicated to you that what is called a
capitalist may to a very great degree be a landlord, although he does
not go by that name. Don't let us be misled by the terms of our friend
Mr. Untermann, but let us look at the substance of the thing. To the
extent that a man's wealth is capital he is a capitalist but to the
extent that it is land, he is a landlord, whether he goes by the other
name or not. That is the essence of the
thing.
We propose to abolish landlordism. How are we going to do it? Think a
moment of what land value is, which is what we propose to levy taxes
upon. We propose to tax men; but we propose to levy the tax in
proportion to the value of their land. My friend wants to know what
ground rent is, what land value is. There is no difficulty in defining
it. You can find out from Single Tax books, you can find out from
Socialist books, you can find out by talking with your real estate
agent, what land value is. He will tell you what land value is if you
go to talk about renting or buying, but if you go to talk about the
Single Tax with him he don't know any more about what land value is
than my friend does who wants us to explain it.
(Laughter.)
We would tax land value. But the mere taking of the money into the
treasury is not all of it. If we could only devise a way by which we
could throw the equivalent of all the land values into the ocean, or
burn up all wealth that represented land values, we should produce an
immensely better condition than we have now, because the land values
that go to people now through land monopoly, excite other people to buy
land. A great many of them buy in the wrong place, and that land does
not go up in value, but the speculation is going on all the time, and
it monopolizes the land of this whole continent, here in the city and
out over the country, until eighty millions of people are actually
crowded, in this immense country of ours. But they are crowded not by
other people; they are crowded by wire fences that arc stretched
across the land under this Landlordism that exists here in the cities
and also in the country.
(Applause.)
One effect of taxing land value would be to remove all taxation from
industry, so that if a man wanted to build a house he would have no
burden of taxation on the materials, and the burden of taxation which
now begins at the time the house is done would be gone. What is the
result? It makes men want to build houses. You could build more houses,
you could build better houses. What does that mean? A greater demand
for labor. The very moment that occurs you are getting to a point where
you' have ten jobs for nine men instead of nine jobs for ten
men.
But that is not all. The thing grows. As you take away land values you
remove all incentive to hold land out of use. Vacant land would then be
of no value in the market. It would not be monopolized, because there
would be plenty more vacant land as good. When you have done that you
make it still easier to build houses, you make it still easier to do
any of the things that labor makes its living by doing, you have a
still closer approach to the abolition of monopoly; and if you get it
completely done, if you bring it up to the ideal, then you have a
condition in which no man will coerce labor, because labor cannot then
be coerced.
Let me give you an illustration of that point, for I have a minute or
two of time for that purpose. Suppose a continent should rise up in
mid-ocean, and that is more than a thousand miles away. Suppose it to
be a rich continent. Let there be an assurance that there never shall
be land monopoly there, and that labor shall always be free to go from
this continent to that. Let that be a continent where any man can go
and take up land. Now, with that assurance, that the land shall never
be monopolized, that the Single Tax, for instance, shall be in
operation, cities will spring up there, great industries will spring up
there. Where will they come from? From the labor of the men who find
there a better place to exercise their labor power than here. Wages
will rise there to the full earning of the laborer. And how long, let
me ask, would they then be less
here?
In conclusion, let me ask you men and women of the working classes to
consider this: The Single Tax will begin to yield its benefits step by
step from the very start. The very moment that you abolish taxation of
personal property you will begin to get some of its benefits. The
moment you abolish taxation of products of labor generally, you will
get more. The moment you turn a larger part of the rent of land into
the public treasury, you will get more. Make it progressive and you get
the benefit progressively all the way from the beginning. But with
Socialism you first have got to win an election, and you have got to
hold your power, and you have got to change the old order; you have got
to abolish the existing condition of things-root and branch. (Applause
and a voice, "Three cheers for Socialism.") You do not begin to get any
benefit whatever under Socialism until you have done all that.
(Applause). Socialism is revolution, is it not? (A voice,"Yes.") The
Single Tax is progressive. (A voice, "No.") Yes, it is progressive.
There you have an essential difference between them, which, if there
were no other, whether you like it or not, my friends, will appeal to
the working classes in favor of the Single Tax. It will give them
benefits as it goes along. That advantage will appeal to human nature
over a movement that gives no benefit until you have organized a party
that can control the whole world and have abolished the old order of
things and set up a new order. Even under your own philosophy, my
Socialist friends, you do not begin to get any benefit from Socialism
until that time comes. You begin to get the benefits from the Single
Tax from the very moment that you begin even in the most timid way to
put it into operation, and those benefits grow and grow as you
advance.
Now I can understand that confirmed Socialists, such as compose this
audience, may very well say (applause) - I knew it (laughter) -
confirmed Socialists (prolonged applause). How much time have I, Mr.
Chairman?
The Chairman:
A minute. I wish to say that we do not care to have interruptions of a
speaker. You will have an opportunity to hear both
sides.
Mr. Post:
Since I have but a minute this is all I care to say. You Socialists who
are confirmed may be willing to wait until you uproot the existing
order; you may be willing to forego any benefits until that long
distant time comes. But the great mass of the working classes are not
willing to wait that long nor to act in that way. (Applause.)
The Chairman:
It is a healthy sign of the times that of a winter afternoon an
audience of this size, some two thousand people, will gather to listen
to dry economic questions. I have thought many times during the past
few years that we were slowly drifting into the grasp of an oligarchy,
but when I see an audience of this size and this intelligence leaving
the comfort of their homes to listen to arguments, and arguments which
appeal only to reason, I have hope. I have been told that warmer things
are yet to come. It becomes my pleasure now to present to you one of
the gentlemen who will attempt and probably will warm up the discussion
to a higher temperature than it has yet reached - Mr.
Stedman.
Seymour Stedman:
Mr. Chairman, Ladies and Gentlemen - Mr. Post in almost the opening
sentences of his address made the statement that sooner or later the
Socialist cause, perhaps not under that name, would be launched against
the Single Tax movement. I can well understand why that may be
possible. The Single Tax is simply the crowning of capitalism.
(Applause.) It stands for shifting the taxes of a portion of the
capitalist class upon the shoulders of another part of the capitalist
class - namely the landowners. And by doing that they do not at all
claim or believe that it will result in the abolition of all classes.
The Socialist movement will live and thrive and grow until there are no
classes within the civilized world.
(Applause.)
Seeing that it is Sunday, it may be well to read a little from the
Single Tax Koran. I read from page 358 of "Progress and Poverty" : "To
buy out the individual property rights would merely be to give the
landholders, in another form, a claim of the same kind and amount that
their possession of land now gives them. It would be to wrest from them
by taxation the same proportion of the earnings of labor and capital
that they are now enabled to appropriate in
rent."
As stated before, the Single Tax simply contemplates a change in the
form of taxation and it does not for one moment propose to abolish
exploitation. Socialism will abolish exploitation. That is why
Socialism is revolutionary in its character. (Applause.) And let me say
here that in using the term "Revolutionary" Socialists do not at all
mean physical force (applause), but we mean by revolution not a mere
reform but a complete change in the fundamentals of society. On the
10th of August the French revolutionists enfranchised the citizens,
abolished titles and overthrew the nobility, which formed the fabric of
feudalism, and there was no blood shed on that
day.
Mr. Post stated that the speaker who preceded him announced the
doctrine of material interests. The speaker who preceded him in
substance, said this: That the material interests of a people is that
which governs and determines their laws, mode of production, their
lives, morals and ethics. He did not mean that sentiment, religion,
ethics and morals failed to play any part in molding the character of
men. The class in control determines the prevailing standard of morals
and religion, and its purposes are always consistent with their
materialistic aims and interests, which it requires and nourishes. Mr.
Post forgot his earlier statement, and in conclusion said : "What does
the working class want? It wants food, it wants clothing, it wants
shelter." There is the materialistic argument that the Single Tax
ethical preacher sets forth to prompt you into action and to urge the
working class to dispossess one class of capitalists in favor of
another. (Applause.)
He talks about rights, and then he fails to define them. He talks about
natural monopoly, and I hope the speaker that follows me will define
that.
Mr. Post, in reply to Mr. Untermann, said: "Mr. Untermann asks, ‘What
are land values'?' In reply Mr. Post said : "Go and ask a real estate
broker, go and ask your landlord, read books on Single Tax," and then
proceeded to say, "We will take that," never making any attempt himself
to answer the question.
(Applause.)
He says "the Socialists propose a government that shall regulate things
in a stereotyped manner." The Socialist movement in its program and its
purposes must conform to the economic evolution and tendencies of the
time. We realize that by organized industry and associated effort,
today we have the social regulation and the social method of production
and distribution of wealth, but the contradiction exists in the private
ownership of these socialized means of production, and the Single
Taxers propose to let it stand and
continue.
I ask the speaker who will follow me to answer, do you believe in
profit? Let us not have any evasion of that question. (applause.) The
moment you believe in profits, you must believe in interest. Interest
and profit you can calculate to infinity, but the possibilities of
actual production are finite. The moment you uphold profit you uphold a
system of Carnegies and Rockefellers, and the private ownership of the
means of production and distribution.
(Applause.)
Furthermore, the Single Tax proposes that no man would go into a
factory and work for less than he could earn upon the land. They tell
us that with free land we may all build more homes. But what are we
going to build more homes with? Will we all become carpenters? What
will we wear and eat while we are building those
houses?
Furthermore, the Single Tax proposition that a man can go upon the land
and maintain his existence, is a reversion of progress, a degeneracy to
the ancient system of savage life, because what you can produce without
the modern methods of production and distribution is exemplified by all
savages that exist to-day, and we know their limitations and capacity
for production. We cannot in our production ignore the machine as a
means of wealth
creation.
In speaking of farmers, I call attention to the fact that they are
averaging about $29 a month, excluding all interest upon the capital
invested in land or utensils which they use in their
production.
Moreover, I want to ask Mr. White how he would apportion land values
where among a thousand men who have labored for a year, to find-an oil
well, who have spent their time to enrich the community, but failed
through accident, and some other man who by chance finds the oil well?
What would he tax that land, and what would you pay those who lost in
the original search and who have nothing to show for their
effort?
We have a real Utopia built by Mr. Post on free land on an island a
thousand miles from shore. Mr. Post had it populated by emigration and
forgot the most essential thing in populating the island, which was a
steam boat. (applause.)
And then the question arises who owns the steam boat? At the present
time the water is free and yet we know that the steam boat traffic is
an industry owned by a few and, monopolized. Let us assume that you go
out there on the island and one man has a Mergenthaler machine, the
type and capital with which to run a newspaper, hasn't that man an
advantage over a man who comes there with no capital except the ability
to run a Mergenthaler, and who has absolutely no money with which to
compete with the man who owns the machine? We may say in Chicago to a
man out of work, "We have got free land." But what he wants is
profitable employment. He goes down to Marshall Field, and says, "I
want a job as counter jumper. I am a man out of work. If I was employed
here, I might get a salary of twelve dollars. I want a salary here
working for you." Marshall Field replies, "No, we don't need you." The
job hunter replies, "Well, but the land is free, and if you don't
employ me at twelve dollars a week, I will go out here to 67th street
(seven miles from the center of business) and build a department
store." (Laughter.) "No," Marshall Field would say, "You can't do it,
your capital is insufficient." "Well, I will get a hundred men and women
who will pool their savings and together we will all buy a department
store." Field would reply, "That's right, you go out there and put up a
department store, my place will continue here at the corner of State
and Washington streets, and after you have run for about a year, I will
go out there and buy in your goods at bankrupt sale and sell them here
as a job lot."
(Applause.)
Furthermore, the great industries of this country at the present time
do not rest upon land value, or the proprietorship of land by them. You
can go to countless cities around Chicago and they will give you a
factory site for the purpose of inducing you to locate there. The
Standard Oil Trust is not in the business of owning territory or oil
wells. It owns refineries, which stand between the laborer in the
refineries and on the land, and the consumer in the market. Not only
that, but the sugar beet and cane refineries are not based upon land
ownership. They go to a little town and talk to the farmers and tell
them what they can make in growing beets, and then build a factory
there. The value of that trust does not rest upon the beet farms or
cane fields that are owned by the farmers; it is based upon the fact
that they have millions of dollars' worth of plants and machinery and
buildings in which the refining is
done.
You can go down the list and single out one industry after another. The
higher priced land means that instead of having one-story houses to
live in, we have five-story and six-story flats and live away up in the
air with a lot of vacant land around us. A beautiful dream. A Utopia of
- plenty of land and high
buildings.
Every single workingman in this hall wants what: Better houses, better
clothes, better working conditions and higher wages to raise his
standard of life. What does the capitalist want? He wishes to pay lower
wages and impose longer hours. He does not produce for utility; he does
not produce for use. His interest is entirely different from that of
the working class, arising from an entirely different motive in the
production of wealth.
With competition, you have a warfare condition for domestic markets.
The failure of the local market means that you must contest with the
world powers for foreign markets. Your contest for foreign markets
means that you must maintain armies and support navies, and all that
goes with the perpetuating of class rule or
government.
You tell us about government. The Socialists can agree, perhaps, with
the logical Single Taxer, for the logical Single Taxer lands in one of
two camps. He becomes either a communistic anarchist or a Socialist.
(Applause.) And your government will live as long as the Single Tax
will be in operation, because government is the police power and the
force that is used by the dominant class to further its own material
existence and perpetuate itself. Government will never fall until all
class war disappears, and that will come when you have industrial
freedom.
He wants liberty. Who is to define your liberty? Always heretofore in
history the class that had control have told you in what your liberty
consists. They tell you what our freedom shall be. Tell us, Mr. White,
will the Single Tax abolish classes, will it abolish the economic
antagonism of classes? Will it abolish on the one hand the workers
searching for food and products to consume, and on the other hand the
men who own and control the industries and run them for profit? Will it
change the motive and the purpose which arrays these two great classes
against each other? Mr. Post has said that you cannot accomplish that
until you accomplish it throughout the world. Sir, we know it. The
capitalist class is a world class, but so is the proletariat.
(Applause.)
Let us contemplate for a moment what Single Tax intends. What is the
curse and idiocy of the modern system? The waste that is based upon
the present form of industrial society. One of the strongest points in
Socialism is that it will do away with the waste that exists in the
competitive life in which we live. There was appropriated for your
schools only about two hundred million dollars a year, but for armies,
eight hundred and fifteen million dollars a year, an amount that would
reproduce the buildings of thirty-seven complete world fairs, such as
we had in Chicago in 1893. The destruction by war of property alone,
eliminating the question of men, in the last century was something like
1,405 billion dollars, enough to erect over six thousand world's fairs.
This will give you some conception of the loss of effort and the waste
that exists under present conditions. How many instances are there?
Take advertising, pick up your daily paper, examine the street cars, go
along the thoroughfares and look at the bill-boards and you can imagine
the terrific amount of waste there is in this line. Consider the
useless persons that exist at the present time - one hundred thousand in
the penitentiaries. I admit that there may be such a thing as
congenital criminals and antisocial characters, but the great class of
criminals are produced by the economic struggle, which saps the life of
the people.
We see a man who is a hobo on the street, and we think, "Well, there is
one man that has spent a useless life and he is a wreck," but if you go
down to his past, you may find that he was taken off the farm and put
into a glass factory when he was six or seven years of age; that he
worked there ten years to create profits, which the Single Taxers
believe in-and it has completely sapped his vitality and life.
There are about 80,000 or 90,000 lawyers in the United States, with an
equal number of clerks. (Applause, and a voice, "You are a lawyer.")
Yes, it is true, as long as there is a working class that is stupid
enough to labor from seven o'clock in the morning until six at night
and perpetuate this system, I shall get down at ten o'clock in the
morning (laughter); as long as this system plays favorites, I shall
try and be one of them. When socialism comes, I suppose I shall have to
earn an honest living.
You have a large number of insane, and I want to call attention to the
fact that the isolated life and hardships of the American farm send
more men and women per capita to the insane asylums than do the cities.
Free land would increase the hardships of the farm, and the Single Tax
may thus increase the insanity that exists.
(Applause.)
They tell us about coal lands, and the unused coal fields which exist.
I grant it. Can we increase the pay of the coal miner by opening up the
countless fields that exist surrounding us in other states, and
increasing competition among them by your process? Instead of having
one general store you will have half a hundred. Did you ever notice
that where there is only one grocery store in the neighborhood, the
owner will open the store at six o'clock, seven or eight, and close
reasonably early, but if another man comes in and starts a grocery
store next to him and he opens at seven and closes at nine, the other
must do the same. Each must open as early and close as late as his
rival. By doing that through competition you are wasting your labor and
lives in competition. The Socialist proposes that you use your labor
for actual production and the blessings of life.
(applause.)
What does the system of competition produce in morals, in ethics? It
puts sand in your sugar and turmeric in your mustard, chicory in your
coffee and alum in your baking powder - adulteration on every hand. The
Senate of the United States appointed a committee to investigate the
subject of adulteration, and I read from the report of that
committee:
"The adulteration of prepared and manufactured foods is very
extensively practiced, and in many cases to the discredit of our
manufacturers." (How pathetic.) "It is only fair to say, however, that
a large proportion of American manufacturers who are engaged in
adulteration of food products do so in order to meet
competition."
That is, the manufacturers say: "We would like to quit adulterating
goods, but in doing so our competitors would take the trade away from
us."
The first thing that every man is confronted with, and the paramount
thing, is the struggle for existence. If the man next to him employs
machines, he must do the same. If he employs women and children he must
secure women and children. If one adulterates his goods, becoming a
criminal, the other must follow him in his career of crime, or must
cease to live or become a wage worker working for his heartless
competitor. (Applause.) And I want to know how the opening of land (if
it will not decrease, but on the contrary, increase, competition) will
do away with adulteration? They tell us that we haven't competition now
and that we are going to get that when we get the Single Tax. Whether
you call it voluntary rivalry or emulation or competition, what you
mean is the struggle for profit, whether you call it by one name or
another. It makes no difference what the name, the result is the same;
the capitalist competitors are both after profits. The motive is the
same.
Furthermore, let us understand this : In all historic epochs we have
had contests between classes. Do you think manufacturing and landed
interests will unite on the Single Tax program? By no means. The
factory legislation in Great Britain was due to the fact that the
agricultural proprietors endeavored to shift the burden of taxation
upon the cities and towns, the bourgeoisie. Those in the towns
endeavored to shift it back upon the land, and the earlier factory
legislation was due to the conflict between those two classes, making
concessions favorable to the employes of their rivals, which resulted
in some beneficial legislation to laborers, the result of capitalist
conflicts rather than the organized effort and protest of the working
classes. So from capitalist conflicts some benefit comes at times to
the workingmen.
The Single Tax, as a fiscal measure, proposes the confiscation of land.
You say you are taking land values. That is all that has any utility to
society, and when you take all in land that has any utility to society,
you then advocate confiscation - a capitalist
revolution.
The gentleman speaks of the public opinion which must be aroused. Do
you know what public opinion is? Let me illustrate it. In the summer
when the days are warm and the thermometer is dancing away up in the
nineties, the Chicago papers come out and say that business is dull
because the people are all out of town. We know who are out of town;
those who can afford to go to the mountains and the seaside. They are
the people, and those are the people that make public sentiment. Let me
tell you now that if you had a marriage in this hall between people of
questionable intellect, but with much paraphernalia; the Chicago
American would be loaded down to-morrow morning with two or three pages
devoted to it (laughter), while this meeting will probably get about
three lines, and it may not get that much. Were it not for the fact
that the Single Taxers dearly love the democrats more than they do the
republicans, I do not think we could get even those three
lines.
Mr. Post tells you that Mr. Untermann says as a class we ask the
support of the middle class. Let us not misunderstand that middle class
proposition and their support of us. That is only partially explained
by the statement made by Mr. Post, and even by Mr. Untermann. The man
who is working in a grocery store, or in a small business, working
twelve or fourteen hours a day, should join the Socialist movement,
because with Socialism, his hours of labor would be cut down to a
civilized basis and his income would be raised to permit him to enjoy
some of the luxuries of
life.
But do you for one moment suppose that those people who belong to the
class depending for their existence upon the continuance of the wage
system will come to us? We know well they will not. We know that like
the democrats and republicans in Haverhill, Mass., they will unite
against us. (Applause.) We know that like the Manufacturers'
Associations which unite the capitalists against the trade unions and
the Economic Leagues of proprietors and capitalists united against the
Socialists. We know that when there is a strike of delivery teamsters
at one department store, the capitalist who is a rival of that store
will send over to deliver his rival's goods. We understand the unity of
interest which capitalist class have against the Socialists, and we
also understand the unity of interest which every intelligent
workingman must recognize in each other, against the capitalists, and
that their salvation comes only from a recognition of that and their
economic class interests expressed at the ballot.
(Applause.)
Mr. Post referred doubtingly to the figures that had been made by the
statisticians in Washington. Certainly, they cannot be regarded as
favoring Socialism. (Applause, and a voice, "Sure.") And if they do, we
can refer to the more open and obvious lessons to which we can draw
attention. We know that if in this hall at this moment it should be
proclaimed that the land was free, every man who had money would desire
to invest where he could draw the largest return, and if he thought he
could make more by investing in something else than building houses he
would be governed
accordingly.
The Single Tax is not a philosophy. It is a proposed patch work for the
purpose of remedying certain presumed abuses of the capitalist system.
Socialism, on the contrary, is far different. We recognize certain
changes which have taken place in the past and which show the evolution
from savage to barbaric life, and from barbaric to civilization or
capitalism, and an inevitable change into a new form of industrial
existence. These changes and occurrences lead us to believe, with a
great deal of certainty, that the next industrial era which will follow
the present will be
Socialism.
We recognize that you cannot destroy a single link in the process of
social evolution, but you can, through industrial activity, hasten the
death of an epoch that is injurious to the men or women who are passing
through it. You can no more destroy an essential link in the process
through which the evolution of society is taking place, any more than
you can eliminate any stage in life (childhood or maturity), from
conception to death. The Socialists propose to gather all the
achievements and utilities of the past which can be of service to
society, and to take full advantage of all modern methods of production
and distribution, collecting the riches of the past and the wealth of
the present, and march forward to industrial freedom, comrades in the
greatest cause, and striving for the noblest achievement that ever
warmed the heart or inspired the brains of men.
(Applause.)
The Chairman:
I think you will agree with me that the temperature is higher
(laughter), and I have no doubt but what the thermometer will rise
still higher. (Laughter.) You know it is always good policy to keep the
good things until the last, and without any reflection upon those who
have gone before in this argument I have no doubt that the other
gentlemen will send us all up to the boiling point. I now have the
pleasure to present Mr. Hardinge, who will take issue with the last
speaker.
Henry H. Hardinge
You should not disappoint the audience by telling them what they are
going to get. They might not get
it.
Socialism is, to my mind, the unscientific protest of the
dissatisfied. (Hisses.) You are taking up my valuable time by hissing.
Not that I am opposed to dissatisfaction. All of the progress of the
human race flows from intelligently directed dissatisfaction. But I am
opposed to anything that is unscientific, because it will not work.
What is science? It is the discovery and the application of the laws
and the forces of nature to the uses of mankind. This is the beginning
and the end of science. It is based upon a recognition of natural laws.
If there is any one thing that scientists do lay particular stress
upon, it is the existence and immutability of natural laws and the
persistence of force. Socialists-and with particular reference to the
gentleman who will follow me, Mr. Simons-have many times in my hearing
in public, repudiated the existence of natural law, which is the basis
of all science, so that it is almost pathetic to hear them insist upon
the fact or statement or principle that Socialism is nothing if it is
not scientific, and yet repudiate its
foundation.
Be that as it may, Mr. Stedman has raised many questions. He says that
under the Single Tax, if you could not make money by investing in land
you could invest it in buildings. True, that is just what you would do,
because there are only two things you can put money into; one is land
and the other is labor; one is monopoly and the other is industry.
Under the Single Tax you would not have to buy monopoly; there would
be no monopoly to buy. Therefore, in spending money, whether you are a
rich man or a poor one, you would buy labor, if you bought anything,
because there would be nothing else to buy. What effect would that have
upon the labor market? If a man were, for example, a millionaire - if
there were such a thing under the Single Tax, and I doubt it very
much - if he did spend money he would spend it in buying things and
nothing but things, because, if you eliminate land monopoly, what have
you got in which men can invest money? In order to produce anything at
all you need land. For instance, here are some gentlemen in New York
paying five millions cash for a site along Broadway and putting four
and a half millions into the largest and finest office building in the
world - paying half a million more for the chance to put the building
there than for the building itself. They are paying four and a half
millions for labor and five millions for monopoly. Under the Single
Tax they would have all of that $9,500,000 to spend for labor, and then
would have a building more than twice as valuable. That is one of the
supreme advantages of the Single Tax; it will compel every man who
buys anything to buy labor, because when you buy a house or a loaf of
bread or a pair of shoes, you are buying labor, because they are made
by labor.
Now,
as to classes and the class struggle and the class consciousness
which Socialists everywhere insist upon so urgently. Classes and the
differentiation of society into classes are simply the result of
institutions that make classes. Forty years ago we had chattel slavery
in America. Two classes were involved, the slave owner and the slave.
With the abolition and extinction of the institution of slavery both
classes went by the board, and the only way to destroy present classes
is to destroy the institution on which they are based-land monopoly.
This the Single Tax will do; it will dispense with landlordism and
landlords and monopoly of every
kind.
As to competition and the competitive age, this is not the competitive
age in any proper sense of the term, or any proper interpretation of
the term "competition." This is the monopolistic age. There never was a
time in the history of the world when monopoly reigned as supremely as
it does to-day, and hence competition was never at so low an ebb.
Competition has not free play to-day. Nowhere has it half a fair
chance. Monopoly is in control of nearly everything, and competition is
throttled and almost destroyed. This is certainly the monopolistic age.
All of the evils of which Socialists complain grow out of monopoly and
not competition; this includes the evils in competition itself, which
is one-sided and not universal as it would be under the Single Tax.
Natural competition would be the great distributor of wealth and social
advantages. The Single Tax is a tax upon monopoly, and the basic
monopoly at that.
As to the coal trust and other trusts mentioned, Mr. Stedman has said
that there are very few of the great industrial combinations to-day
which owe their existence to the ownership of land. Let US examine this
statement. The coal trust consists of nine railroads combined with all
or nearly all of the available hard coal beds of Pennsylvania,
consisting of about 450 square miles of territory. Without railroads
you cannot get a pound of hard coal to the market. Nine railroads tap
that vast region. The result is that by controlling the railroads and
ore beds they control the situation, dictating to the American
consumers what they shall pay for coal and to the miners what they
shall get as wages for producing the coal. The Single Tax will be a
tax in Pennsylvania exclusively upon land values, and the bulk of
Pennsylvania land values lies in the coal beds of Pennsylvania, the
cities and the oil region, three of the most valuable things they have,
and the Single Tax will strike them and strike them hard, and the
operation of the same laws that tax land values will force unused coal
beds into the market, which will compel the use of the coal beds, which
will employ more labor, which will enormously increase the visible
supply of coal, which will increase the demand for labor, which will
increase wages, and by the same bold stroke that you increase the
demand for labor and increase wages you will increase the supply of
coal. (Applause.) You need simply to reverse the process of starving
the market and charging higher prices to the consumer. You simply turn
it around, reverse it, have more . work for the worker,' more coal for
the consumer, higher wages for the miner and cheaper coal. Land cheap,
wages high. That is what the Single Tax will do in regard to the coal
trust.
So far as the railroad problem is concerned, a railroad is but "Two
streaks of rust" and a right of way, and the right of way is the only
thing which does not wear out, which does not have to be repaired. It
is the only thing that gets more valuable as invention goes on and
population multiplies. The basis of the railroad trust is certainly
land monopoly, and more than half of the capitalized value of the
railroads in this country consists in land monopoly pure and simple.
The railroads are capitalized at about eleven billions. The Single Tax
is a tax upon land
monopoly.
As to advertising, we see as plainly as anyone the enormous waste
resulting from advertising to-day. No way to get rid of goods, the
market is out of balance. The trick is. not to make goods, but to sell
goods, to find a market. This is not because there are not enough
people to buy goods; no, not through scarcity of people, but of money.
There are not enough buyers for goods because purchasers have not got
the money to buy back the goods they have made. They have not got the
money because they do not get wages enough. They do not get wages
enough because work is scarce, and work is scarce because of land
monopoly, .and the worst feature of land monopoly is land speculation.
The Single Tax is a tax upon land monopoly and will destroy it and
destroy it forever.
(Applause.)
And when you destroy land monopoly and make opportunities free to all
men, how much freer can opportunity be under Socialism or any other
ism? Subtract land from man and what is left? Nothing, because we are
made of it. Land is the basis of all production, and if you are the
owner of the land you can control the people. Unless you solve this
problem you cannot solve the social problem. If you own the capital and
I own the source of capital I will control. If there were but 2,500
people in the world and I owned the land there would be just 2,499 too
many in the world, and they would have to come to me and make their
bargain with me if I insisted on my legal rights. The Single Tax will
destroy the private ownership of the earth in the only intelligible,
practicable, simple, scientific and just way that it can be destroyed,
and it will work, and that is why the landlords fear
it.
As to wasted energy, a gentleman sent me a letter yesterday and he
said: "I know that it will cost much more to get these things which you
make for us on the market than it will cost to make them." What kind of
a social condition have you got if that is true, when men need and make
useful things everywhere, and yet it costs more to get those things to
the people who need them than it does to make them? Now, if that is not
commercial and industrial upsidedownedness, then there is no such
thing, and it results from scarce
opportunity.
Who would define liberty? Mr. Stedman asks. What is liberty? Those only
can define it who understand it. It is the right to live. What does the
right to live amount to if the right to labor is destroyed or taken
away from you? Where does liberty come in, or what does the pursuit of
happiness amount to if a man cannot pursue anything without paying a
price to somebody for the privilege of working, or being free, or
being happy?
Armies and navies, says Mr. Stedman, are to defend the capitalists. All
the armies and navies of the world have one object and one purpose, and
that is this: to grab and to hold land. Everywhere in the world that is
true. We do not need an army in Chicago. All our vast industrial and
commercial enterprises here are carried on by productive industry and
without armies and navies. Armies and navies consume everything, they
produce nothing. We do not need them in the city; we need policemen
only, and under the Single Tax we would not need one where we now need
a hundred, for nearly all policemen are employed in suppressing the
victims of land monopoly. Why do we want armies and navies elsewhere?
To grab and hold land, that the land monopolists who own this country
may use said lands for the exploitation of other peoples, as they do
our own people who are landless. Armies and navies have
but one object and no excuse, that the exploiters of labor may grab and
hold land. No nation can grab and hold land in outside territory
without armies and navies. Land monopoly rests upon the use of armies,
navies and policemen, the visible expression of physical force. There
is no natural or just excuse for land monopoly, and moreover, if the
men who to-day get the benefit of land monopoly through the use of the
armies and navies had to pay, as they would have to pay under the
Single Tax, the value of their monopoly would dwindle down to the point
of ultimate extinction.
As to the making of goods for profit and not for utility and use, I
challenge that statement. I challenge it because it is not true and I
can prove it. I am a mechanical engineer. I use the finest kind of
measuring instruments and tools. Without this perfection I cannot
accomplish my ends. I find in these things the visible expression of
the most beautiful workmanship. They are constructed for use and
utility, and unless they are so constructed they would be utterly
useless for accurate work. He said goods were made to sell and not to
use. I tell you they are made to use primarily and to sell
incidentally.
(Applause.)
So with food, clothing and shelter, the sale is incidental, because
when a man is running a shoe factory if he produces more shoes than he
has personal use for, he must exchange them for things he has use for;
therefore the sale of shoes is incidental, for unless people wanted to
use them he would cease making them. And so through the whole complex
series of exchanges, unless at bottom all goods were made to use they
would not be sold, and under a fair industrial adjustment all things
would be made both to use and to exchange. That is all there is to
production carried on as it is to-day. It is utterly useless to produce
unless exchange takes place, and under the Single Tax there would be
fair exchanges.
As to the steel trust, about a year and a half ago, Mr. Schwab, who
knows as much about steel as any man in this audience, for he is a shop
man, brought up in the works at Pittsburg, went before the industrial
committee at Washington, was examined, and gave his testimony. He was
asked this question by the chairman of that committee: "Mr, Schwab,
don't you think the steel trust is over-capitalized?" He said : "No, I
don't." "Why?" "Because in the Connellsville coking region of
Pennsylvania there are 60,000 acres of coal, the best coking coal in
the world for steel making purposes. We have got it. We own it. That
land was appraised and the value was based upon the prsent and the
expanding uses of steel, for this is the steel age. That land is worth
now $60,000 an acre and $60,000 multiplied by 60,000 gives
$3,600,000,000." That value in private hands represents nothing but
tribute-levying power, nothing but land monopoly, nothing but land
value. You may not know what land values are, Mr. Stedman, but Mr.
Schwab does. (Applause.) He said: "The $3,600,000,000 is more than
twice our present capitalization. I think we are under-capitalized." In
his testimony he did not say one word about steel mills, rail mills,
plate mills, bloom and billet mills, blast furnaces or the various
machinery and capital entering into the production of steel plates,
blooms, rails, sheets or anything of the kind. What he did say was that
the steel trust rested on land monopoly in the State of Pennsylvania, a
monopoly given to them by the laws of Pennsylvania and upheld by the
people of Pennsylvania. He was talking about, thinking about and
discussing nothing but land monopoIy. He did not care for the rest
because he knew he could duplicate every rail mill, steel mill, billet
mill, bloom mill, steamship and ore dock. That is not what constitutes
the monopoly. The monopoly exists in the ownership of that which can
not be duplicated. You cannot duplicate land because land cannot be
made by man, not an ounce of it, and for that reason those who own it
have an ab'solute monopoly. You cannot find a substitute for,it, and
the men who own it have got an absolute monopoly, and the Single Tax
would destroy that.
(Applause.)
When Mr. Schwab was before the Marquette Club here in Chicago he said:
"You have heard many complaints about the steel trust being
over-capitalized. Let me tell you something. Up in Michigan, in
Minnesota and in Wisconsin we own or control between eighty and ninety
per cent. of the best available iron ore beds discovered in this
country for making iron or steel, When you consider the enormous
production of steel and the increasing demand for it all over the
world, you will see that this is the steel age." He never said a word
about bloom mills, plate mills, billet mills or blast furnaces. He was
thinking about the monopoly of the source of supply. That was the only
thing he was interested in. And he said this in substance to the
industrial commission and the Marquette Club: "Land monopoly in
Pennsylvania, land monopoly in Michigan, land monopoly in Wisconsin and
land monopoly in Minnesota is our sole source of power, our sole source
of monopoly." The only power of the steel trust to underpay workmen and
overcharge customers lies in its monopoly of land and the tariff on
steel, amounting to $11 per ton. The Single Tax will destroy both at
one fell swoop.
(Applause.)
The Standard Oil trust. The Standard Oil trust owes its monopoly to two
things, the private operation and ownership of railroads and pipe lines
based upon franchises and land values and the private ownership of oil
wells. Abolish this by the Single Tax and there is nothing left of the
standard oil trust as a monopoly, and if the average citizen could buy
transportation just as he can now buy postage stamps, without
favoritism, he would not have to pay thirteen or fourteen cents a
gallon for six cent gasoline. People pay that now only by virtue of
land monopoly secured to the trust under statutory
law.
As to the sugar trust. The Single Tax is a tax on land values only.
When you abolish all tariffs the sugar trust will lose its power to do
evil. The evil power of the sugar trust is simply the power to
overcharge customers for refined sugar, and that it does by means of
the differential tariff on refined sugar and the prevention of foreign
competition by the tariff. The Single Tax will operate to destroy the
tariff and thus destroy whatever there is of power for evil in the
sugar trust.
As to the steamship trust - there is no steamship trust. It went to
pieces when Mr. Schwab and Mr. Morgan waterlogged and sunk it. The
ocean cannot be monopolized, hence steamship trusts are ephemeral, they
cannot last, they haven't got their feet upon the ground, like the
fabled Anteus, and the coal trus, and would never be thought of were it
not for the private monopoly of docks and terminal facilities now
controlled by the railroads, and the Single Tax will render both
forever impossible.
As to Marshall Field and these other gentlemen who own department
stores, Mr. Stedman said that Marshall Field would say to these other
men who wanted to start a department store, "Go on and start your
store, and in a year from now I will buy your goods as a bankrupt
stock." Mr. Field might also say to them, "Your capital don't amount to
anything. You haven't got the right place to sell goods. You are not on
the right kind of dirt. The kind of dirt to sell goods on is down on
State street, and I have got a monopoly of a large section of State
street. I have the customers, and if you want to get customers you have
got to come down here alongside of me where the customers are. Your
capital don't amount to anything. You are no use as capitalists."
(Applause.) You have proved conclusively that the power of capitalists
does not consist in the ownership of capital merely, but in ownership
of monopoly. Mr. Field would be powerful only as a landlord and not as
a man engaged in production, exchange or useful industry.
(Applause.)
Mr. Stedman asked, "Gentlemen, how are you going to ascertain the value
of oil land?" Well, it took Mr. Crowther, of the King Crowther
combination, of Texas, just seven years to get control of 7,500 acres
of land. Why did he do that? In order to engage in production? Not at
all. In order to become useful to his fellow men? Not at all. In order
to get a land monopoly, so that he might sell out to those who needed
oil in their industries i that is why he did it. The land speculator is
not a useful citizen and society does not need him. He is simply the
man that gets there first. Land monopoly is at the bottom of your oil
trust, your oil kings and your millionaires. Mr. Crowther is said to
have "got" several millions; he "made" nothing. Now, Mr. Stedman, how
did this man ascertain the value of that oil land?
As to rent, profit and interest. To divide the present system of
distribution into rent, profit and interest, as Socialists do, is just
as foolish as to talk about the human family being divided into three
classes, men, women and human beings. All there is to society is men
and women. All there is to distribution is rent, wages and interest.
You call a landlord a monopolist and class his rent as profits; he
calls it interest on his investment - two names for the same thing. The
vast bulk of so called interest now paid is rent, ground rent for the
use of the earth. The power of Shylock, which both Socialist and Single
Taxer condemn, arises. not from tire avarice of the man who takes the
last pound of flesh, but from the necessities of his victim which drive
him into the Shylock's den. The Single Tax will abolish such
necessities by making people free, by making industry free. All
industry is based upon land. By making the land, the source of all
wealth, free, men can then engage in production under such conditions
that they will not need the aid of a Shylock, and all will have plenty
without going to a Shylock. No matter how greedy the Shylocks are, they
can not extort by the mere fact of greed, for it takes two to make a
bargain, and the very instant you make men free you take away the
advantage of any Shylock to crush his fellow men. You can not crush an
eggshell unless you have something on the other side, even with the
weight of Jupiter. And you have got to have something underneath the
worker to compel him to give up the bulk of what he produces for the
opportunity to work. Why does he do it now? Because his hand is palsied
by lack of opportunity, and the "thing on the other side" is land
monopoly. What is it today that stands between industry and its
products? Three things only: land speculation, taxes upon production
and taxes upon exchange - just three. The Single Tax would abolish taxes
upon production and tax land monopoly only. It would abolish taxes upon
exchange, and tax land values only. It will remove the taxes from these
two things and place the burden upon the other thing, on land
speculation. Every vacant piece of land is a tramp factory. When you
abolish land monopoly you leave industry in a condition for unhampered
production. Men will, be free to produce what they like, where they
like, when they like, and how they like, and there will be a more
equitable distribution, for by the same bold stroke that you abolish
land monopoly you abolish the three things which now stand in the way
of industry - you abolish the desperation, the poverty, and the
dependence of the worker. The dependence of the worker explains his
willingness - no, not willingness, but necessity, for giving up the bulk
of his products for the opportunity to work. As soon as that dependence
is abolished, so soon does he become free as an American citizen should
be. Now you Socialists have got to deal with this question of taxation.
You have to meet it. You can not abolish it without abolishing all
government. I am not opposed to government; I am not an anarchist, nor
yet are you. What will you do with it? You have got to deal with it.
There are only two things you can tax: one is
labor and the other is land monopoly. If you tax labor as it is now taxed, by
taxing personal property, and everything in sight produced by labor,
you will do the very thing that brings about our present industrial
problems, the very condition you wish to destroy. If you ever achieve
political power you will have to do this first. If you do that, you
will abolish the very evils that you are organized to combat, and
nothing else will be left to combat, for what can a people not
accomplish when they are industrially
free?
We want co-operation; so do you, and we know how to get it. We want it
to be voluntary and universal. We know that men co-operate because it
is natural and necessary, because men seek to gratify their desires
with the least exertion, and if you remove the trinity of burdens,
prohibitive land values and taxes upon production and exchange, you
will at once make production perfect, unlimited and universal; and the
moment you do that you will have the free industrial system that the
world today is looking forward to; for already the sun of liberty has
risen above humanity's horizon, and when it reaches the full zenith of
its power and glory no Socialist, no Paternalist, no Protectionist, no
advocate of the extension of governmental power and no apologist for
privilege will be able to look upon its face and live.
(Applause.)
The Chairman:
The general summing up and conclusion of the arguments
in favor of Socialism and the Single Tax will be given by two
well-known gentlemen, after which ten minutes will be given to Mr.
Simons on the Socialist side of the
question.
I will now present to you Mr.
Simons.
A. M. Simons:
For one thing, I want to thank our opponents. I want to thank Mr. Post
that he came out here and said two things: in the first place, that
they were willing to rest their case with the working class omf the
world, and in the second place that the coming struggle which is to
shake the foundations of society was to come between Socialism and
Single Tax. We know what that means. The Single Tax to-day is but the
tail of the democratic kite, and Haverhill, Brockton and a dozen other
places have shown that democrat is but another name for republican, and
justify what we have always said, that in the last great line-up
between plutocracy and Socialism, the Republican party and the
Socialist party, standing face to face will fight the battle of
humanity in America.
(Applause.)
I want to take up for a moment, before proceeding to my main
discussion, some of the things that Mr. Hardinge put before you. He
told us that the Single Tax would compel everybody to buy labor. May I
ask Mr. White, who is to follow, who there would be that would sell
labor, if everybody was to buy? If there are buyers then there are
sellers. (Applause.) And we know enough about what is the result when
human flesh and blood, the power of muscle, the skill and brain of the
workers is sold in the markets of the world to not want to move a
finger to carry that phase of society on through another stage of our
existence.
Again, he told us that to-day was not competitive; that to-day was
monopolistic, but the fact of the thing is that the evil of competition
of which we are complaining is here. (Applause.) And he gave no
evidence whatever to show that the Single Tax which should usher in
this era of glorified and beatific competition would take away the
damnable waste of advertising, of armies, of lawyers, of the whole mass
of parasites that to-day ride upon the backs of the working class in
America.
He told you that the armies were the real foundation of your land
monopoly. Was it to secure land monopoly that soldiers shot down
strikers in the City of Chicago in 1894? (Applause.) When soldiers and
sailors are sent beyond the seas is it to acquire land? No, it is to
acquire human beings that they go there, that is, the possibility of
consuming the things that American laborers are creating and which
capitalism denies them any opportunity to enjoy. (Applause.) When
to-day in the "bull pens" of Colorado the soldiers are carrying on a
reign of terror beside which that of the Cossacks of Russia is mild
indeed, they are doing it not to add more territory to the United
States, not to produce more rent for the landlord, but to give more
profits to the Rockefellers and the Gateses who own the Colorado Iron
and Fuel Company.
(Applause.)
He told us the Single Tax would make so many more buyers you would not
any longer need to advertise. Evidently this gentleman never had any
experience in the advertising world. It is when the buyers flock on
State street that the State street merchants advertise. Why do they
advertise? Did you see as much advertising in the time when those
streets were deserted, in the terrible panic times of 1894? No, the
greater the crowd of buyers the more the waste that is spent in
decorating bill-boards, covering up and padding our magazines, sending
an army of drummers across the country, and the greater the general
waste, not simply of dollars, but of the life and blood and energy of
the working class of America.
(Applause.)
We asked them who would define liberty, and he told you that those who
knew the most would define it. That was not a very clear explanation,
because I don't believe we would all agree as to which one knew the
most. I will answer the question for him that in any stage of society
it will be that class which dominates and rules and controls the social
organism. Under the Single Tax, as under capitalism, with two classes,
there would be a ruling and exploiting class. I do not want any ruling
class to say what shall be liberty for you and me. I say that you have
no right to define liberty for those who chance to belong to the
working producing classes. There is a fact that these gentlemen utterly
overlook; that every stage of society has a different definition for
right and wrong and liberty and all these catch-phrases which are
juggled here. Under Socialism there would be a different definition.
The class that would do the defining, that would decide what was right
and wrong and what was liberty, would be the great producing class of
the world, who would then be the Social rulers and the Social whole.
(Applause.)
Again, they took up the trust question, and I want to make a few
comments along that line and then since I am going to devote the most
of my talk to the subject of industrial concentration, I may come back
to these questions
again:
He told us a few things that I do not want you to miss. He told us that
the steel trust rested almost exclusively upon land monopoly. I hold
here in my hand "Trust Finance," by Edwin F. Mead, recognized as the
greatest authority in the realm of trust finance, the man who foretold
that Morgan was trying to sell gold bricks when he started the steel
trust; that compelled the steel trust to issue a statement in order to
explain away those predictions, and then every one of those predictions
proved true, and who to-day is feared by Wall street as well as
recognized. And he tells us what? He tells us that with regard to these
coke ovens, with regard to these coal mines, that they are a source of
weakness because in them is tied up capital, while substitutes are
being constantly found for the Connelsville
coal.
On page 281 he says: "Since 1893, however, and especially since 1897,
this monopoly of the Connellsville coke maker, upon which President
Schwab places such a high value, has been gradually undermined. The
agencies which have brought this about are the by-product coke oven and
the open-hearth process of steel making. In the by-product process,
first introduced into the United States in 1893, the coal is coked in a
high narrow retort; that is to say, under heavy pressure, and by the
application of external heat, no air being admitted to the coal. By
this method it has been found practicable to produce a strong coke from
a great variety of coals. Western Pennsylvania is full of coking coals,
which, while unsuitable for the beehive oven, do very well in the
by-product oven. Coke is now made by this process from coal produced
outside the Connellsville region, by a number of independent steel
companies, the Lackawanna Iron and Steel Company, the Cambria Steel
Company, and the Maryland Steel Company being among the number. There
is no longer much doubt that any steel company which can pay $100 to
$200 per acre for coal land can make itself independent of the coal
land of the Connellsville region." Thus he shows that a change in the
tools and methods of production has rendered the land monopoly
valueless and proves once more that capital has supplanted land as the
dominant industrial
factor.
He goes on to show why land ownership is of little importance to the
men that are ruling the industries of the world to-day. Do not our
opponents know that a national bank is forbidden by law to own land?
Because it is such a disadvantage, the ownership of land by a great
life insurance company is looked upon as indicating its probable
downfall. In the great field of "high finance" where to-day industries
are made and wrecked and social forces formulated and controlled and
governments set up and used as puppets, the land is looked upon as an
incumbrance and a
nuisance.
Now, then, I want to take up this whole question of concentration. Not
to-day, but in the early days of capitalism, competition was looked
upon as the great ruling social force. On it rested the entire fabric
of capitalism, and when monopoly came in it seemed to those whose lives
depended on the perpetuation of capitalistic exploitation, and rightly,
that the whole great structure was tottering to its fall. And so they
did not see what the socialist foretold a half century ago, that "one
capitalist devours many," that the larger the industrial unit the
cheaper it could produce, and the cheaper it could produce the larger
the industrial unit grew. And as transportation became improved and
communication perfected and the circles of the market grew larger and
larger, the territory within which a single industry could dominate
grew and grew and grew like the circles around a pebble cast into the
water, until at last, for many lines of industry, it became coterminous
with the equator and the meridians, and the whole great world became
one market in which the master who rules in any industry could rule
supreme. Well, when the concentration first began along certain lines
the little capitalist who felt himself squeezed to the wall began to
howl and he tried first to meet it with anti-trust laws, and then he
tried to explain it away with his philosophy; he tried first with
anti-trust laws to correct and stop it, and then he tried with his
philosophy to show that it had no right to exist anyhow. (Laughter.) To
him concentration was something abnormal, something out of the way,
something "unnatural," my friend. (Laughter.) It was simply that
despairing howl of a class that felt the great wheel of industrial
progress rolling over it and sought to stop it by pushing with their
puny hands.
But still it grew and grew and grew, and their explanations did not
seem to explain. Their anti-trust laws did not seem to check it, and
finally some of them took up the line of national or governmental
ownership, by which they sought to put in the hands of the government
the whole income from the great trusts and leave the little field open
for the small exploiters still to graze in. So the Single Taxer who
realized that the landlord was squeezing him, and the man that owned a
little shop out on West Madison street or on Milwaukee avenue, whose
rent was of mighty importance, thought that if he could get rid of it
he would be free to run Marshall Field out of business. Marshall Field
cared nothing for the land, because only a few of the great department
stores own land; they pay it over to a landlord in the form of rental,
and, if you make that rental higher, then it would certainly keep the
little fellow out, and if you make it lower, then it certainly would
help the big fellow. You can take either horn of the dilemma. So the
small capitalist seeks to enter a field in which he can live and still
ride upon the backs of the workers, and naturally he turns to various
phases of reform. He is not satisfied alone with the taxing of land. He
is continually adding something else to the idea of land monopoly. He
has to bring in the coal beds, then the little strip of land that the
railroad runs on. Because anything touches the land, therefore it is
the land which constitutes the land monopoly, until it finally reaches
the height of the ridiculous by Henry George, Jr., telling us that the
tobacco trust rested upon the ownership of a little chunk of land down
in Cuba which the trust had bought only after its position had been
assured, and it had dominated the world for three or four years. This
was his argument, that the trusts can not exist without land. This is
all the land the trust owns, and therefore, the tobacco trust, touching
this piece of land, must be made a monopoly by virtue of that
ownership. It sounds very much like some of the arguments that Mr.
Hardinge has put up. He was great on these successive clauses as lines
of argument, as you probably noticed. But as a matter of fact
concentration could not reach a high point until the time should come
when the industry should be practically free from land, and
concentration found its first field in those industries most thoroughly
removed from the land.
It goes into the banking industry in which the owners are forbidden by
law to own land. It comes into the railroad industry, in which the
ownership of land is infinitesimal. It goes into a whole mass of others
where land is of less and less
importance.
Oh, but that brings in a new argument, that of "special privileges."
They tell us that the sugar trust exists because of the tariff. What
under the sun has the sugar trust got a lobby for in Washington; what
is it working for? Free trade with Cuba. (Applause.) That is what they
are working for. It is said that the tariff is the foundation of
industrial trusts, and yet trusts are located in England, the classic
land of free trade. Over there they have nothing but free trade, and
Chamberlain wants to put a tariff on
it to stop
concentration. Too much "privilege" over there. How do they account for
the fact that today the Coates thread works, located in Paisley,
Scotland, owning no land save what it stands on, is dominating the
market, dividing the entire world between its different branches
regardless of free trade or tariff, patent legislation and land
legislation of every possible form and kind? No. You can go into any
country in the world and you can find that, no matter what these
"privileges" are, wherever capitalism is there the trust is formed. But
let us analyze that term "special privilege." It is simply another way
of saying that the capitalists use the government in their own
interest. Of course they do - of course they do. (Applause.) When the
capitalists of America want one kind of a law they have it, and when
they want another they have it, and "special privilege" is simply a
general term for the various things that these members of the
capitalist class of America or any other country want from the
government at various
times.
But the Socialist contemplates concentration from another point of
view. He says it is a perfectly logical - "natural," if you like that
word better - evolution from a previous condition, and he says to you
that it grows larger and larger until it divides society into two great
classes, the capitalist class upon the one hand and the laboring class
upon the other; the workers with hand and brain upon the one hand, and
the parasites who live upon those workers upon the other. Those classes
are struggling, first in the economic field, then in the political
field, to gain economic advantage, to gain the food and the clothing
and the shelter that Mr. Post told you they wanted. And finally, they
see that the time will come when that class will become the ruler-when
the working class will become the rulers by virtue of their
overwhelming numbers. Then the question arises, what will they do?
why, act in accord with their material interests, to be sure. What are
those material interests? They are demanding the end of the condition
which today holds them in slavery. That condition is the ownership of
the things that they must use in order to live. Therefore the workers
propose to own those things. They cannot own them individually because
they are indivisible and they are more economical of operation on a
large scale, and therefore they propose to own them collectively, and
they propose to use the social organism, which they would control, for
the purpose of operating those
industries.
But, says Mr. Post, you propose to tear down and destroy and
revolutionize. We do propose to revolutionize, not to tear down and
destroy. We hurl back the accusation upon those that say we would tear
down and destroy. It is they who would reduce the standard of living,
for those men of the working class who through their union have raised
it a trifle above what the savage could raise from the soil, down to
the point of what man with naked hands wrests from the niggard soil - a
mere subsistence. We do not propose to tear down. We propose to use the
whole structure and push it on to its legitimate conclusion. We propose
to take the magnificent machinery into which the life blood and skill
and strength of generations and generations of workers have been
poured - we propose to take that for the use of the
workers.
I want to ask them again as I have before, if they justify the return
from the ownership of capital. That is the whole question on which we
differ. We do not justify their landlord. We stand here to make no plea
for him. But we ask them do you justify the capitalist? That is the
question. And by capitalist we mean not some man who, owning a little
shop, is more than half a worker. That is not what the word means in
the literature of today, in the language of today, in the public
thought of today. We means those men that live by virtue of ownership
and that hire other men to do the superintending, the bossing, the
managing and the organizing; the men whom the French call the rentier
class as distinguished from the entrepreneur class; the men who own
stocks and bonds and mortgages, and who by virtue of that ownership are
able to reach into the pockets of every man who toils and take from him
from 5 to 90 per cent of all that he produces and keep it for their own
use. Do they justify that? If they do, then Mr. Post was right when he
said that the last great struggle was coming between Socialism and the
Single Tax. (Applause.) As for us we are not interested in the
squabbles between these wings of the capitalist class. Today we find
that the continued slavery of the working class rests upon the
perpetuation of the quarrels between their masters, and it is for that
reason that we antagonize the Single Tax, because we see in that an
instrument to weld the chains firmer upon our wrists. We see that the
struggle is pushing forward on a clear field between capital and labor,
and that they seek to come between and help to give the pretendedly
warring parties of capitalists more excuse for continuing that farcical
fight.
And that brings us to the question of tactics and the means of getting
what we want, and there we break clearly and firmly with the Single
Taxer. The Socialist shows you here that the interests of the working
class are in everlasting war with all forms of exploitation, whether of
the landlord or the capitalist. (Applause.) And we carry that war into
the political field, and we cannot fellowship there with any whose
interests are opposed to us. Therefore we seek to express in the
political field that class war which is running through society, which
we did not create, but the concealment of which is so important for the
continuance of capitalism. We seek to express that condition in the
political field, and as quick as that is done our victory is assured.
Therefore the only hope of a continuation of capitalist rule is to be
found in these pretended divisions. Here it is that the Single Tax
becomes of value, because it affiliates with one of the great political
parties today and lends its support to them. So they have to bear the
sins of that party. When they fasten themselves on to the democratic
party they accept responsibility for the treatment of the southern
negro, while they ask our sympathy through the tears they shed over the
poor Filipino. They accept with that, if you please, the fact of
anti-boycott laws in Alabama and the absence of child labor legislation
of all kinds throughout the sunny south. (Applause.) That is supposed
to be of little importance; it is of more importance than may appear at
first sight. For today capitalism is shifting its center of domination
to the southern states, and if it can build its stronghold amid a
disfranchised negro laboring class and on the bodies of helpless child
slaves with the help of the philanthropic Single Taxer of the north,
it can maintain its rule for many years over the exploited wage slaves
of the north and south.
(Applause.)
For that reason we attack them, and so we place in opposition, first
our philosophy, and in that today we in common with the whole
scientific world recognize no "natural" or "unnatural" laws. He wanted
me to say something about that. If that term "natural law" has any
earthly meaning at all, it means the laws that are found today in the
realms of physics and chemistry - the laws of chemical affinity and the
laws of gravitation. And do they pretend to tell us that land values
and rent are determined by laws of gravitation or chemical affinity?
"Natural law," like any other law of any kind whatever, is simply an
expression of the fact that there is an observed succession of
phenomena. They claim to have observed a certain succession of
phenomena in society which we deny exists, and so we ask you to judge
between us on the proof submitted and not on the phrases applied, if
you please. (Applause.)
And so we tell you that the Socialists look upon this concentration as
the "natural" (if you like the word) outgrowth of our competitive
system of today: We look upon it as a desirable thing, because it
abolishes the tremendous waste of competition, and it certainly does
not put any heavier yoke upon the laborer than is upon him today, for
if you did he could not maintain his efficiency, hence he would not be
as valuable a laborer and you could'not squeeze him. And so we are not
interested in the question of whether we have big capitalists or
whether we have little ones. We are not interested in the question of
whether we have one boss above of us or whether we have fifty. But we
are interested in the question of getting rid of all bosses, all
mastership, all exploitation.
(Applause.)
Then again Mr. Post made one other statement that I want to thank him
for, and that is when he said he wanted to leave his case with the
working class of the world. That is a mighty significant thing, and I
am glad that we have got the Single Taxers on record on that. The
working class of the world have shown that they care very little for
the Single Tax. (Applause.) And today when you look over the entire
capitalist world and you see the gathering hosts that are following the
red flag of Socialism; when you see them lining up all over the world,
today some thirty million strong in followers, over eight million
strong in votes, and when we see this mighty army marching on and
joining hands across the sea, from far away Japan over across America,
from the golden gate to the coast of Labrador, on across the Atlantic
and across the Russian steppes; when we see that tremendous body
moving in solid step against enthroned tyranny and exploitation; when
we see the mighty fight that is coming, it is at least a consolation to
know where our enemies are. And therefore we thank him for the fact
that he tells US that in that final day he is going to be on the other
side, against that mighty army of the workers. (Applause.) Not that we
would not welcome him as an individual to our ranks. But we must hew to
the line; we cannot stop to discuss where the chips may fall. And so
we would rather know men as open enemies than as doubtful friends. But
we do not believe that he will be an open enemy. We believe that the
great mass of the Single Taxers today will take the other wing of that
logical development that Mr. Stedman pointed out, and land in the
Socialist movement.
(Applause.)
Let me then sum up. On the one side, on the side of the Single Tax,
stands the defenders of all the terrible waste of our society today,
the four times the public school fund spent for army and navy, and ten
times the public school fund spent in advertising; stands for the
defense of capitalist exploitation as such; stands in the field of
tactics for support of the democratic party, one of the great
divisions of the capitalist class, and I would like to know how they
will stand when that party fuses with the republican party in Chicago
as it has elsewhere before the specter of Socialism.
(Applause.)
On the other side, under the banner of the Socialists, stands the
determination to enjoy the full fruition of all that modern science and
the skill and brains of the working class have produced; stands the
determination to end all forms of exploitation; stands the
determination to use all the instruments of production that the mind of
man has devised and man's skill and strength made possible for the
production of wealth and the conservation of all that wealth for the
use of the producers and none else; and that stands for a society that
shall be ruled by the working class, when all are members of that
class, and that stands today for the great worldwide revolt of the
workers who are to form a society that shall know no class, no
exploitation, no landlords, or capitalists. I thank you.
(Applause.)
The Chairman : The closing argument and analysis for &e Henry
George Association will be made by that well-known advocate, John Z.
White, whom I take pleasure in presenting to you.
(Applause.)
JOHN Z. WHITE.
Mr. Chairman, Ladies and Gentlemen: As we Single Taxers have patiently
submitted to being compared to Dinklespiel, and have patiently
submitted to certain suggestion that our logical faculties were more or
less out of order, I trust that the assembled Socialists will patiently
submit if I say some things not in severe criticism, but in explanation
of my own mental attitude. I do not ask you to agree with me. When my
neighbors agree with me I begin to get suspicious of myself.
(Laughter.) Nearly all my neighbors support the protective tariff; I
don't. Nearly all my neighbors support landlordism; I don't. I am used
to being associated with the minority, and I have no objection to being
in the minority this afternoon. (Applause.) But being in the minority
does not in any way give the majority a right to express its
superiority over me physically. (Applause.) We have recently passed a
law at Washington whereby men must not disbelieve certain things, on
pain of being thrown out of the United States, and, another bill is
introduced under which we must not disbelieve certain things, on pain
of being put behind bars. Now there's a whole lot of things I
disbelieve. Among other things, I disbelieve Socialism (applause); and
I do not propose to be put behind bars for this disbelief, physically
or metaphorically, unless by compulsion. I want to find out whether
this audience is of the same temper as that which is endorsing this
legislation at
Washington.
Single Taxers are not Dinklespiels; that is admitted. Much obliged.
Socialists are opposed to Single Taxers, and we may possibly draw a
conclusion.
We are told the International Association dropped the Single Tax when
it was proposed many years ago. That settles it; they dropped it.
Napoleon I. dropped the needle gun when it was placed in his hands, and
for failure to realize the value of the needle gun, the breech-loading
rifle, Napoleon died on St. Helena. The mere fact that somebody has
dropped something proves nothing, except that he dropped it.
(Applause.) That is the historical method of getting at
matters.
"Historic changes in society flow from changes in the economic basis."
Marx said so, Engels seconded the motion, the International Association
voted unanimously, and that settles
that.
This sort of history is not good history. No man in this audience is
determined wholly by his material surroundings. Some men are largely
determined by material affairs. Some men are determined almost entirely
by emotions, and I am sorry to say that my experience has been that the
Socialist groups in Chicago are a complete confirmation of the latter
assertion. (Laughter.) I notice that the appeal this afternoon is made
to the emotions, made to the sentiments. The gentlemen who appealed to
you are tolerably well acquainted with their audience. (Laughter, and a
voice, "Tell us something about the Single Tax," and
hissing.)
I am doing the talking now. (Applause.) I want to find out whether I am
to be put behind bars metaphorically or not. This is my turn; and the
minute you overstep that line, gentlemen, you furnish me with the
chiefest argument against your system. (Applause.) This is not the
first of this sort of interruption. I have met it before. I scorn a man
who is not square. I despise a man who is not
square.
"The Single Tax will fail because land rent, ground rent, has gone
through many phases historically." That ground rent goes through many
phases is true. It is going through a lot of them
now.
Our railroads, we are told this afternoon, give control of industries;
that it is not land which gives control of people and control of wages;
and the element of land in railroads is referred to as infinitesimal.
A gentlemen by the name of Larrabee, who was once governor of the State
of Iowa, wrote a book in which he gave all of the figures he was able
to gather from all sources, and these figures show the element of land
in railroad values is more than 50 per cent. But that 50 per cent is
"infinitesimal !" An expert gives $11,000,000 as the physical value of
the Chicago City Railway, and $27,000,000 as the market value of its
stock, a difference of $16,000,000. Isn't that land? If not, what is it?
(Voices, "Water," ‘Wind.") Wind? The gentleman needs to read some book
on political economy where terms are defined, and he will find that
wind, which labor has not touched, is land in the economic sense. Land
in the economic sense includes water and all natural
forces.
We are told by the first speaker, Mr. Untermann, that the landlord
would shift the tax, even if we could institute it. I merely refer him
to the literature on this question. It is a matter that was settled
before Henry George was born. You might just as well tell me that the
mathematical axiom that the whole is equal to the sum of all the parts
is not sound, as to come at me with the proposition that landlords can
shift a tax laid upon the value of land. Why don't you tell me that a
stone thrown up in the air will stay there? A story is told of the
extreme cold of California in the early days. A cat leaping across an
open space froze stiff and remained in the air. A man to whom this
story was told said, "Nonsense, the law of gravity would bring it
down." "Yes," said the story teller, "but the law of gravity was froze
up too." (Laughter.)
As to the figures, they were disposed of, I think, by Mr.
Post.
Capital does not last. Land does. All through history labor has been
held in subjection. What held it? Something that lasted all through
history, and something that still continues. What is it? What things
have continued in all the history of humanity? Two things, man -and the
globe on which he lives. (Applause.) To hold man in subjection you will
have to either enslave his body, make him a serf, or hold the land on
which he must live if he lives at
all.
Capital: a gentleman wanted to know what we meant by capital, if we
believe in capital continuing, if I remember the question
correctly.
Mr. Post: "Capitalism."
Mr. White : If we believe in capitalism? Well, then he went on to
tell us what the word meant. He says, as I understand him, it means the
power which some man has to hold another man in subjection and to take
what his labor earns. If that is what he means, we certainly do not
believe in it. But what has that got to do with this question? We are
considering a method which will remove this power. (Applause.) We
understand that laboring men are despoiled. You understand that
laboring men are despoiled. We are both opposed to the process.
(Applause.) Now, what shall we do in order to destroy the process? (A
voice, "Join the democratic party.") There is another gentleman who
thinks he knows something about the matter, and it looks very much as
though he does.
Mr. Post referred to a revolution, and our friends on the other side
denied the purpose of a bloody revolution, and in support of that
position referred to the surrender of the feudal tenures in France, but
so far as they were able concealed from this audience the fact that
that surrender was voluntarily made in response to a national
sentiment, not in response to a change in the physical basis of
economic life. Mr. Post did not imply a bloody revolution. He meant a
complete upsetting and rebuilding of social institutions. That does not
mean blood, nor did he mean it. Blood may or may not be incidental to
the result. That is the position that your writers
take.
Then
they want to know what profit is, and want no evasion of the
question. In reply we say, here is the globe, the planet, with
sufficient capability for all that live on it. Maybe I am mistaken.
Maybe some of our Socialistic exhorters can prove that notion wrong. It
is also my notion, that if we would get something to eat, we will grow
it out of the ground, out of this earth, out of this planet; that if we
want a house to live in, we will get the material out of this planet;
that if we want clothes, we will find the material provided by this
planet, and with our labor we will make every article which we will use
as clothing. Now, what becomes of the articles? Under our law some men
own the earth and they won't let us use it unless we will pay them for
it. Therefore, we have to give a part of what we produce to those who
own the earth, and they call such income rent; and we look upon it as
100 per cent "profit" to the landlord. That is one form of what we mean
by profit. Then we notice that men who do the work get something, get
a part of what they produce, and we look upon that as profit to them.
We know that some men have made tools with which production may be
accelerated, and they are given a part of the total product for the use
of their tools, and we look upon that as a portion of profit. Upon what
basis is there any other division? Here are rent, wages and interest,
and each represents a profit to those who receive it. That is what we
mean by profit. Now, when you say rent, wages, interest and profit, it
is as though you were to say men, women, children and human beings. If
it is not that, why
not?
Mr. Field could tell the 100 men supposed to conduct a co-operative
store that he would buy them out in a few months when they broke up,
because "that is not the place to put up a department store. This is
the place down here, and I have got it." What is the "place?" Is it not
a part of the surface of this planet that we call the earth? Isn't it
land? And according to their own statement, viewing the facts that they
as rational men perceive, Marshall Field's cinch, his power, lies in
the "place" that he holds, that he monopolizes. He monopolizes this,
gentlemen, under law, and we propose that the Single Tax will fall upon
the value of that place, and all advantage that comes to Mr. Field from
the possession of this place will flow, through the operation of this
tax, into the public treasury. Now, if there is any advantage, and my
friends point out that there is, in the ownership of this place, then
that advantage under the operation of this tax will not inure to
Marshall Field, but will inure to the people of Chicago, because they
control their own treasury if they want to.
(Applause.)
Then, "will the Single Tax abolish classes?' Why, of course we think it
will. We assert that it will. You assert that it will not. Making
answers to questions of this sort is simply a form of begging the
question; it is not argument. It is understood that you believe that
only Socialism will abolish classes. It is also understood that we
believe that the Single Tax will abolish
classes.
Why am I asked this question? Do you want to find out whether I believe
in social classes or not? No, of course I don't. (Applause.) In the
dictionary sense of the term, in the historical sense of the term, I am
a democrat. In the party sense of the term I am a democrat, or not, as
my notion of expediency determines. If I think they are going to
abolish the tariff, I will be with them. If I think they are going to
re-elect Grover Cleveland I will be opposed to them. (Applause.) In the
next election, if they put up Mr. Roosevelt and Mr. Gorman, I will in
all probability, so far as I can see now, vote the Socialist ticket. (A
prolonged applause, and a voice, "We don't want your vote.") Perhaps
you won't applaud just so loudly when I tell you why. (Laughter.) I will
vote that ticket because I know you haven't got any chance on earth to
win. (Laughter.) As much as I dislike the republican party under
Roosevelt, I like it better than I do the Socialist Party. As much as I
dislike the democratic party under Grover Cleveland or Gorman, I like
it better than I do the Socialist Party. But I am opposed to all three.
(A voice, "Don't vote at all.") Wouldn't vote at all, the gentleman
says. That is like little Mary, who says, "Well, if you are going to do
that, - why, I won't play; I will go home; so now." I do not think
there is any considerable dignity in that
position.
"Socialism will do away with waste." Well, I don't know. They tell us
about the waste of advertising and war. If a war is in defense of
liberty and in opposition to tyranny, gentlemen, I view it as anything
but waste. (Applause.) During the American revolution a foreign king
endeavored to maintain tyranny in this land. That war, from the
standpoint of the American patriots, was of the highest degree of
productive utility. When we proposed to overthrow the institution of
chattel slavery in the South, it was necessary to levy war in order to
accomplish the result. I view that war as anything but waste. I think a
fair comparison, a reasonable and direct comparison, would be of this
nature: Suppose Socialism in possible operation; then suppose the
Single Tax in operation; where in these two cases would appear the
greater waste? And I will insist that the Single Tax, under free
competition, will furnish you the highest point of production and the
lowest possible point of waste. Upon the other hand, your Socialistic
arrangement, no matter how you may order it, will give you the lowest
point of production, and therefore as a consequence the highest point
of waste (applause), for a reason which was pointed out by one who
endorses Socialistic principles. In one of your recent histories of the
growth of the Socialistic ideal in the modern world it was stated that
every time one of your Socialistic societies hired a man from outside,
this man did twice as much work in a day as any member of the commune
ordinarily did. Therefore, I insist that governmental control, public
control, of all industries will remove the force that is necessary to
carry material civilization to its greatest height - that of individual
initiative. That is the power which all of your Socialistic
arrangements is calculated to kill. Free competition is absolutely
necessary to remove tyranny. I want to remove tyranny, but I insist
that it is not necessary to destroy individual ambition in order to
accomplish that result. (Applause.) There is the dividing line. If you
will allow all men to produce, associating in such way as they will,
but deny to any man the legal authority whereby he can crush or trample
upon, or in any manner dictate to another - just that moment will each
and every man stand
free.
You talk about a man with a great warehouse full of machinery. What
good is that machinery to him if he cannot get men to run it? And if he
would get men for this work, must they not be removed from direct
cultivation of the ground? We are told that if the land were free
workingmen could only get at it with their bare hands. Did you ever see
a community grow up in that kind of style? Are you talking seriously?
Do you mean to debate this matter on its merits? That is not the way
modern primitive societies began, nor ancient primitive societies
either. Not within the range of history has civilization ever begun in
that kind of style. Are you practical men? Are you talking about real
things, or are you talking about the figments of your distorted
imaginations?
(Applause.)
They want to know how the Single Tax would open coal land. To
illustrate: A few years ago there was a very lucrative industry for
private parties in the river beds of the Carolinas, where a man with an
old horse, an old wagon, old harness, old pick and old shovel, and in
an old suit of clothes, poor, a distinctive representative of the
Southern "white trash," could go down into the river bed and fill that
wagon with phosphate and haul it up to the depot and sell it just as a
farmer does his grain, and he could make two, three, four, five or six
dollars a day. A law was enacted giving to a corporation the control
of this phosphate in the river beds, and immediately this very man was
reduced to a position first of a dollar and a half a day, for he was
working for a corporation, then a dollar and a quarter, then ninety
cents, and then negroes were imported and herded in stockades, and one
of them shot while trying to escape. Now, put your tax on those
phosphate beds today, and will they hold them idle? They are not fully
using the phosphate beds. They are using them in spots just as in the
anthracite coal region they are using the coal deposits in spots.
Spread your taxes over that three billions of land value referred to by
Schwab, the Connellsville coal, and will they leave it in the ground, as
they are doing now? Take it home to yourselves. Suppose you own it
individually and we put our tax upon it, where will you get the money
with which to pay that
tax?
You will get it in one way and one way only, and that will be by
putting men at work digging coal. When you do that, and all other
landlords do that, where are they going to get the men from?
(Applause.)
They want to know if competition puts sand in sugar. Yes, it does; and
it caused men in the Black Hole of Calcutta to tear out one another's
eyes. A few minutes before they were perfectly peaceful; they were
outside in the fresh air. Competition acts differently in different
conditions. That is, it does among all people except Socialists.
(Applause.) If you have a Socialistic state I know of no reason on
earth to prevent men doing things that they ought not to do. If you
know how they come to do it, then you are probably like the
representative of the Civic Federation down here before the city
council the other day, who said that the duty of the state is to make
persons and property safe. We told him to put the persons in Joliet and
lock the property up in the First National Bank safety deposit vaults
and they would be safe. That is the duty of the state, under his
definition. I do not think that is the duty of the state. It is the
duty of the state to make persons and property safe in freedom.
(Applause. )
"Socialism will reduce hours." I don't know whether it will or not. You
think it will. But we do know that all of the Socialistic institutions
that have been attempted up to today, many under very favorable
circumstances, have gone to pieces. However, as I understand it, this
matter of reduced hours is not a necessary part of socialistic
philosophy. The philosophy of Socialism is this: that through the
process of evolution a few men known as the landed aristocracy, as
feudal lords, over-lords, lords paramount, got control of the ancient
civilization, and the economic necessities of the trading and
manufacturing classes compelled them steadily, slowly, with many
fluctuations and discouragements, to force their way through this old
aristocracy until they assumed control of the political, social and
religious institutions, assumed control of all the forces of
civilization, dictating policies and commanding the situation. Today
the necessities of the laboring class, we are told, are compelling
laborers to do the same things for this middle manufacturing class that
it formerly did for the landed class; it is forcing its way up
through, - and will assume control of all political, religious and social
forces and dictate their management in their own interest. This is the
idea of Socialism that I have gathered. I simply want to challenge the
assertion that the middle class have ever got rid of the ancient
aristocracy. It is not true. The ancient landed aristocracy is now in
control - (applause) - today, as in the ancient time, it is the landed
interest, no matter in what guise, that dominates the economic
situation everywhere.
"We are all going to invest in houses when the land is forced on the
market." Then, "when there are no more people needing houses, we will
invest in something else." - Yes, and we will keep on investing in
"something else" till, in all lines, returns on investments are equal,
and continue equal, and are maintained at an equality. Because every
fellow can go into that line which is offering the advantage, as shown
by larger margins. That is what we mean by free competition.
(Applause.)
They want to know, when all buy labor, according to Mr. Hardinge's
proposition, who will sell. why, gentlemen, if I make a thing and sell
it to you, and you make a thing and sell it to me, each of us has
bought labor. That is, we have bought the energy that is expressed in
the article that is placed on the market. I thought an explanation of
the simplest form of barter would furnish a clear statement that even a
Socialist might understand.
(Laughter.)
They want to know if it was for land that the soldiers shot people in
the streets of Chicago. Yes, and for nothing else. (Applause.) What was
being done here in Chicago? According to the 1894 authorities laborers
and strikers here, and the mobs, were destroying the value of Chicago
property. (Applause.) That is what they claimed was being done in
Pullman, that is what they claimed was being done at Homestead, that is
what they claimed was being done in the Couer d'Alene, that is what
they claimed was being done everywhere; that they were destroying the
value of property. What is it that goes down in value? The value of
land falls, and nothing
else.
Mines tied up capital, according to Schwab, and that was one of its
weaknesses, according to Mr. Mead. You can see that easily enough. Here
is a corporation that has a million dollars and spends three quarters of
it for land and has the other quarter left to invest in machinery, and
has not capital enough to carry on the business economically as a
result, because so much is locked up in land. That is what Mead's
testimony meant.
"Ownership of land against the national bank law." Why? The men that
framed the national bank law knew that they were giving to the owners
of the banking business a monopoly. They knew that when you put the
money monopoly on top of the land monopoly all history proves that you
have a power which will crush every other commercial force that exists
in that territory. Therefore the right of a national bank to own land
was denied. That was the reason for it. Notoriously
so.
"Capital need not fear." We say it need not, so long as your agitation
is of such a nature, gentlemen, that it does not indicate knowledge of
natural commercial law; so long as your agitation is of the kind that
Emperor William of Germany found in J. Pierpont Morgan, when, in his
interview, he said that "Talk as we would, after two hours' speech with
Mr. Morgan, I could not discover that he had any knowledge of the great
antagonisms and harmonies that control the commercial world." So long
as any agitation fails to realize the nature of these antagonisms and
harmonies, just so long it will fail to solve the social riddle. It was
only when mechanical laws and chemical laws came to be known and to be
applied, that the modern world became a possibility. It was not the
dissatisfaction, it was not the unrest; it was the increase in
knowledge that made all these things possible. I thank you.
(Applause.)
The Chairman: As we approach the close, I think I may say that we have
much to congratulate ourselves on this afternoon, to be able to be here
and listen to the able, scholarly and eloquent manner in which these
gentlemen have discussed these economic questions. The closing
presentation from the Socialistic standpoint and analysis of the
previous arguments will be made by Mr. Simons, who will be given ten
minutes, after which we will
close.
A. M. SIMONS.
I scarce know just how seriously to treat the combination of sneers at
the audience and assertions and reckless denials that have been put
before you by the last speaker as a
debate.
His roasting of the audience comes with especially poor grace from a
member of an organization that forbade Socialists an opportunity to
speak upon its floor, and that shut off its outdoor meetings because
questions were asked. (Applause.) I regret that our members have
interrupted sufficiently to give an excuse for such action and the
consequent rebuke.
Now, let us turn for a moment to the other points. I want to say that
the sneer at Marx and Engels and at the Socialists as being followers
of two men, comes also with mighty poor grace from a philosophy of one
man and one book.
(Applause.)
We asked him to answer this question, that the fact might better be
brought to the front, whether or no he stood for the defense of capital
and the capitalist, the ownership of stocks, of bonds, mortgages and
instruments by which wealth was taken from the worker. He, like all the
other Single Tax speakers, carefully side-stepped the question and
replied by telling us, when we asked about profits, that he thought of
a globe spinning in space, and then talked as if we could all build
houses. He made no attempt to define capital, but only replied with a
sneer; only asserting and never
arguing.
Again, he told us that if we meant by profit on capital anything else
than payment for the use of tools to the maker of the tools it was
nonsense, thus showing that his idea, as we have said all the way
through, was that of the old primitive domestic production of
individuals who exchanged their products, and that he had no
comprehension of the great complex capitalist organization of society
where things are made to sell and not to use. Notwithstanding what he
said about everything being made for use, I wonder if they put sand in
the sugar and poison in other things in order that we might use them or
in order that they might sell them.
(Applause.)
He made another assertion. He said equality would come from the Single
Tax, and that it would break the power of the capitalist, but he forgot
to tell us, and none of them did, how changing the capitalist landlord
from the individual landlord to the state landlord would break the
power of either landlord or capitalist, so long as there were ruling
classes and a capitalist controlled
government.
Again, he told us with regard to tactics, when we asked him if he
believed in classes he said, no, he did not believe in them, but he did
not tell us how or why they would disappear. Another bare
assertion.
Again, when it came to the question of tactics, he told us that if the
democrats and republicans put up certain particular puppets in order to
attract attention that he would flop from one side to the other;
showing that it was men, not principles, for which he worked.
(Applause.)
He declared that he was opposed to tyranny and that war in opposition
to tyranny was not waste, but the worst statistics that we had quoted
were the statistics of the army and navy of America, and I do not
believe that he, an anti-imperialist, will claim that even money spent
in foreign war was in defense of tyranny. Certainly the money that was
spent in Colorado, that was spent at Homestead, that was spent at
Pullman, that was spent at Pittsburg, that has been writ by the million
throughout the country in putting down the working class at the behest
of industrial capital, was certainly not in defense of tyranny. That
was the waste we asked you to talk about, and not the waste of the
revolutionary war or the French revolution. (Applause.) He told us when
it came to a comparison of waste that we had offered no argument, and
then - I quote him verbatim, and if I am wrong I would like to be
corrected by the stenographers at the close. He said, "I assert that the
Single Tax will be economical and Socialism wasteful," and a lot of
Single Taxers in the audience applauded him and thought he said
something. (Applause.)
Again, he stood up here and quoted a statement as to the greater
productiveness of individual labor, and he thought that we would not
recognize the book from which he quoted, but we did. He quoted from
Hillquit's "History of Socialism and the Socialist Movement in
America," but he was not honest enough to tell you that the quotation
referred to what was done in the Oneida community after it had turned
into a purely capitalist corporation. (Applause.) We know that
quotation.
Again, we met the old ghost that has died a thousand times, a thousand
deaths, that Socialism would destroy incentive; that a system that
would make it possible for the worker to receive all his product would
destroy the incentive for production; that if we take away the system
of legislation that today enables employers to make men contract away a
right to their earnings, that compels them to live on the smallest
subsistence, that grinds them down until their individuality is sunk in
a number, until they are known only by a series of numbers - that if you
take that away you would destroy individuality. (Applause.) I want you
to note that I am not asserting, I am putting up facts.
(Applause.)
Again he told us that the man on the margin of whom he was talking was
a man that had a rich phosphate bed at his very door. Unfortunately,
there isn't any in my back yard. And my friend there would not have
that sort of thing under the Single Tax for every man. The marginal
producer would be the man who works with bare hands. He says that today
in primitive communities they do not begin with bare hands. I was born
and raised on the frontier of America, and I tell you that the tools we
had were little more than our hands; there was a little more than an
ax. That was about the only thing we had to work with, outside of a
sharpened stick and hoe that we used to put our corn in with, and I
want to tell you that I don't want to go back to that state of society
if I can possibly help it. (Applause.) On the frontier prairie of today
it is true you do not begin with bare hands, because the man that goes
out there is simply the agent of the capitalist who is sent out there
to produce profits on the land with the complex tools he uses. Those
tools practically belong to a capitalist who lets him use them to
create profit. But wherever you have primitive industry you have little
more than bare hands. Where is he going to get the improved machinery?
If he is going to build it up in each little community, if he is going
to go through the whole slow process of reproducing these things, then
we say that is a tremendous social
waste.
Again, the question came as to whether Socialism would bring shorter
hours and again he offered the wonderful argument - I quote him
verbatim - "I don't know about that." We showed him that it would abolish
these tremendous wastes, we showed him that it would utilize all the
powers of society, and he does not know whether it would shorten
hours.
He says that the German Emperor William said that J. Pierpont Morgan
did not understand monopoly. I guess he did not read that interview
right. What the Emperor said of Morgan was that he wondered that he did
not understand Socialism; that is what he said. (Applause.) The
question of what the working men of Germany who are Socialists are
going to do to him was what interested the Emperor, and don't you ever
forget it.
Now, then, in conclusion we offer to you on the one side a great
worldwide army of the workers of the world that stand on a clear cut
and uncompromising program to secure the material interests of
themselves and their families and the heritage of all the world for the
workers. On the other side are a handful that seek to exempt the small
masters or exploiters from the squeezing of the landlords. We have on
one side a single taxer playing the puppet before the different
divisions of the capitalist class. On the other side, the big army of
the workers of the world standing firm for all the product for those
who labor. "Choose whom ye will serve," and you will vote either the
republican or the Socialist ticket. I can assure you that in the end
you will have to swallow the Socialist ticket, even if you do not like
it, or else stand for capitalism. (Applause.)
THE END.
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