第3章

But，theBritishlaborer"spolicyof"ca"canny，"whichistheveryhonorableoneofgivingleastformost，andwhichislikewisethepolicyoftheEnglishcapitalist，isneverthelessfrowneduponbytheEnglishcapitalist，whosebusinessexistenceisthreatenedbythegreatAmericanscab。Fromtheriseofthefactorysystem，theEnglishcapitalistgladlyembracedtheopportunity，whereverhefoundit，ofgivingleastformost。Hediditallovertheworldwheneverheenjoyedamarketmonopoly，andhediditathomewiththelaborersemployedinhismills，destroyingthemlikefliestillprevented，withinlimits，bythepassageoftheFactoryActs。SomeoftheproudestfortunesofEnglandtodaymaytracetheirorigintothegivingofleastformosttothemiserableslavesofthefactorytowns。ButatthepresenttimetheEnglishcapitalistisoutragedbecausehislaborersareemployingagainsthimpreciselythesamepolicyheemployedagainstthem，andwhichhewouldemployagaindidthechancepresentitself。

Yet"ca"canny"isadisastrousthingtotheBritishlaborer。Ithasdrivenship-buildingfromEnglandtoScotland，bottle-makingfromScotlandtoBelgium，flint-glass-makingfromEnglandtoGermany，andtodayissteadilydrivingindustryafterindustrytoothercountries。AcorrespondentfromNorthamptonwrotenotlongago:"Factoriesareworkinghalfandthirdtime……Thereisnostrike，thereisnoreallabortrouble，butthemastersandmenarealikesufferingfromsheerlackofemployment。MarketswhichwereoncetheirsarenowAmerican。"ItwouldseemthattheunfortunateBritishlaboreris"twixtthedevilandthedeepsea。Ifhegivesmostforleast，hefacesafrightfulslaverysuchasmarkedthebeginningofthefactorysystem。Ifhegivesleastformost，hedrivesindustryawaytoothercountriesandhasnoworkatall。

ButtheunionlaborersoftheUnitedStateshavenothingofwhichtoboast，while，accordingtotheirtrade-unionethics，theyhaveagreatdealofwhichtobeashamed。Theypassionatelypreachshorthoursandbigwages，theshorterthehoursandthebiggerthewagesthebetter。Theirhatredforascabisasterribleasthehatredofapatriotforatraitor，ofaChristianforaJudas。Andinthefaceofallthis，theyareascolossalscabsastheUnitedStatesisacolossalscab。Foralloftheirboastedunionsandhighlaborideals，theyareaboutthemostthoroughgoingscabsontheplanet。

Receiving$4。50perday，becauseofhisproficiencyandimmenseworkingpower，theAmericanlaborerhasbeenknowntoscabuponscabs(socalled)whotookhisplaceandreceivedonly$0。90perdayforalongerday。Inthisparticularinstance，fiveChinesecoolies，workinglongerhours，gavelessvalueforthepricereceivedfromtheiremployerthandidoneAmericanlaborer。

ItisuponhisbrotherlaborersoverseasthattheAmericanlaborermostoutrageouslyscabs。AsMr。Cassonhasshown，anEnglishnail-

makergets$3perweek，whileanAmericannail-makergets$30。ButtheEnglishworkerturnsout200poundsofnailsperweek，whiletheAmericanturnsout5500pounds。Ifhewereas"fair"ashisEnglishbrother，otherthingsbeingequal，hewouldbereceiving，attheEnglishworker"srateofpay，$82。50。Asitis，heisscabbinguponhisEnglishbrothertothetuneof$79。50perweek。Dr。Schultze-

GaevernitzhasshownthataGermanweaverproduces466yardsofcottonaweekatacostof。303peryard，whileanAmericanweaverproduces1200yardsatacostof。02peryard。

But，itmaybeobjected，agreatpartofthisisduetothemoreimprovedAmericanmachinery。Verytrue，butnonethelessagreatpartisstillduetothesuperiorenergy，skill，andwillingnessoftheAmericanlaborer。TheEnglishlaborerisfaithfultothepolicyof"ca"canny。"Herefusespoint-blanktogettheworkoutofamachinethattheNewWorldscabgetsoutofamachine。Mr。Maxim，observingawastefulhand-laborprocessinhisEnglishfactory，inventedamachinewhichheprovedcapableofdisplacingseveralmen。Butworkmanafterworkmanwasputatthemachine，andwithoutexceptiontheyturnedoutneithermorenorlessthanaworkmanturnedoutbyhand。Theyobeyedthemandateoftheunionandwenteasy，whileMr。Maximgaveupindespair。NorwilltheBritishworkmanrunmachinesatashighspeedastheAmerican，norwillherunsomany。AnAmericanworkmanwill"giveequalattentionsimultaneouslytothree，four，orsixmachinesortools，whiletheBritishworkmaniscompelledbyhistradeuniontolimithisattentiontoone，sothatemploymentmaybegiventohalfadozenmen。"

Butforscabbing，noblameattachesitselfanywhere。Withrareexceptions，allthepeopleintheworldarescabs。Thestrong，capableworkmangetsajobandholdsitbecauseofhisstrengthandcapacity。Andheholdsitbecauseoutofhisstrengthandcapacityhegivesabettervalueforhiswagethandoestheweakerandlesscapableworkman。Thereforeheisscabbinguponhisweakerandlesscapablebrotherworkman。Heisgivingmorevalueforthepricepaidbytheemployer。

Thesuperiorworkmanscabsupontheinferiorworkmanbecauseheissoconstitutedandcannothelpit。Theone，byfortuneofbirthandupbringing，isstrongandcapable；theother，byfortuneofbirthandupbringing，isnotsostrongnorcapable。Itisforthesamereasonthatonecountryscabsuponanother。Thatcountrywhichhasthegoodfortunetopossessgreatnaturalresources，afinersunandsoil，unhamperinginstitutions，andadeftandintelligentlaborclassandcapitalistclassisboundtoscabuponacountrylessfortunatelysituated。ItisthegoodfortuneoftheUnitedStatesthatismakingherthecolossalscab，justasitisthegoodfortuneofonemantobebornwithastraightbackwhilehisbrotherisbornwithahump。

Itisnotgoodtogivemostforleast，notgoodtobeascab。Thewordhasgaineduniversalopprobrium。Ontheotherhand，tobeanon-scab，togiveleastformost，isuniversallybrandedasstingy，selfish，andunchristian-like。Soalltheworld，liketheBritishworkman，is"twixtthedevilandthedeepsea。Itistreasontoone"sfellowstoscab，itisunchristian-likenottoscab。

Sincetogiveleastformost，andtogivemostforleast，areuniversallybad，whatremains？Equityremains，whichistogivelikeforlike，thesameforthesame，neithermorenorless。Butthisequity，society，asatpresentconstituted，cannotgive。Itisnotinthenatureofpresent-daysocietyformentogivelikeforlike，thesameforthesame。Andsolongasmencontinuetoliveinthiscompetitivesociety，strugglingtoothandnailwithoneanotherforfoodandshelter，(whichistostruggletoothandnailwithoneanotherforlife)，thatlongwillthescabcontinuetoexist。Hiswill"tolive"willforcehimtoexist。Hemaybefloutedandjeeredbyhisbrothers，hemaybebeatenwithbricksandclubsbythemenwhobysuperiorstrengthandcapacityscabuponhimashescabsuponthembylongerhoursandsmallerwages，butthroughitallhewillpersist，givingabitmoreofmostforleastthantheyaregiving。

THEQUESTIONOFTHEMAXIMUM

Foranysocialmovementordevelopmenttheremustbeamaximumlimitbeyondwhichitcannotproceed。Thatcivilizationwhichdoesnotadvancemustdecline，andso，whenthemaximumofdevelopmenthasbeenreachedinanygivendirection，societymusteitherretrogradeorchangethedirectionofitsadvance。Therearemanyfamiliesofmenthathavefailed，inthecriticalperiodoftheireconomicevolution，toeffectachangeindirection，andwereforcedtofallback。Vanquishedatthemomentoftheirmaximum，theyhavedroppedoutofthewhirloftheworld。Therewasnoroomforthem。

Strongercompetitorshavetakentheirplaces，andtheyhaveeitherrottedintooblivionorremaintobecrushedundertheironheelofthedominantracesinasremorselessastruggleastheworldhasyetwitnessed。Butinthisstrugglefairwomenandchivalrousmenwillplaynopart。Typesandidealshavechanged。HelensandLauncelotsareanachronisms。Blowswillbegivenandtaken，andmenfightanddie，butnotforfaithsandaltars。Shrineswillbedesecrated，buttheywillbetheshrines，notoftemples，butmarket-places。

Prophetswillarise，buttheywillbetheprophetsofpricesandproducts。Battleswillbewaged，notforhonorandglory，norforthronesandsceptres，butfordollarsandcentsandformartsandexchanges。Brainandnotbrawnwillendure，andthecaptainsofwarwillbecommandedbythecaptainsofindustry。Inshort，itwillbeacontestforthemasteryoftheworld"scommerceandforindustrialsupremacy。

Itismoresignificant，thisstruggleintowhichwehaveplunged，forthefactthatitisthefirststruggletoinvolvetheglobe。Nogeneralmovementofmanhasbeensowide-spreading，sofar-reaching。

Quitelocalwasthesupremacyofanyancientpeople；likewisetherisetoempireofMacedoniaandRome，thewavesofArabianvalorandfanaticism，andthemediaevalcrusadestotheHolySepulchre。Butsincethosetimestheplanethasundergoneauniqueshrinkage。

TheworldofHomer，limitedbythecoast-linesoftheMediterraneanandBlackseas，wasafarvasterworldthanoursoftoday，whichweweigh，measure，andcomputeasaccuratelyandaseasilyasifitwereachild"splay-ball。Steamhasmadeitspartsaccessibleanddrawnthemclosertogether。Thetelegraphannihilatesspaceandtime。Eachmorning，everypartknowswhateveryotherpartisthinking，contemplating，ordoing。AdiscoveryinaGermanlaboratoryisbeingdemonstratedinSanFranciscowithintwenty-fourhours。AbookwritteninSouthAfricaispublishedbysimultaneouscopyrightineveryEnglish-speakingcountry，andonthedayfollowingisinthehandsofthetranslators。ThedeathofanobscuremissionaryinChina，orofawhiskey-smugglerintheSouthSeas，isserved，theworldover，withthemorningtoast。ThewheatoutputofArgentineorthegoldofKlondikeareknownwherevermenmeetandtrade。Shrinkage，orcentralization，hasbecomesuchthatthehumblestclerkinanymetropolismayplacehishandonthepulseoftheworld。Theplanethasindeedgrownverysmall；andbecauseofthis，novitalmovementcanremainintheclimeorcountrywhereittakesitsrise。

Andsotodaytheeconomicandindustrialimpulseisworld-wide。Itisamatterofimporttoeverypeople。Nonemaybecarelessofit。

Todosoistoperish。Itisbecomeabattle，thefruitsofwhicharetothestrong，andtononebutthestrongestofthestrong。Asthemovementapproachesitsmaximum，centralizationacceleratesandcompetitiongrowskeenerandcloser。Thecompetitornationscannotallsucceed。Solongasthemovementcontinuesitspresentdirection，notonlywilltherenotberoomforall，buttheroomthatiswillbecomelessandless；andwhenthemomentofthemaximumisathand，therewillbenoroomatall。Capitalisticproductionwillhaveoverreacheditself，andachangeofdirectionwillthenbeinevitable。

Diversqueriesarise:Whatisthemaximumofcommercialdevelopmenttheworldcansustain？Howfarcanitbeexploited？Howmuchcapitalisnecessary？Cansufficientcapitalbeaccumulated？A

briefresumeoftheindustrialhistoryofthelastonehundredyearsorsowillberelevantatthisstageofthediscussion。

Capitalisticproduction，initsmodernsignificance，wasbornoftheindustrialrevolutioninEnglandinthelatterhalfoftheeighteenthcentury。Thegreatinventionsofthatperiodwerebothitsfatheranditsmother，while，asMr。BrooksAdamshasshown，thelootedtreasureofIndiawasthepotentmidwife。Hadtherenotbeenanunwontedincreaseofcapital，theimpetuswouldnothavebeengiventoinvention，whileevensteammighthavelanguishedforgenerationsinsteadofatoncebecoming，asitdid，themostprominentfactorinthenewmethodofproduction。Theimprovedapplicationoftheseinventionsinthefirstdecadesofthenineteenthcenturymarkthetransitionfromthedomestictothefactorysystemofmanufactureandinauguratedtheeraofcapitalism。

ThemagnitudeofthisrevolutionismanifestedbythefactthatEnglandalonehadinventedthemeansandequippedherselfwiththemachinerywherebyshecouldoverstocktheworld"smarkets。Thehomemarketcouldnotconsumeatitheofthehomeproduct。Tomanufacturethishomeproductshehadsacrificedheragriculture。

Shemustbuyherfoodfromabroad，andtodososhemustsellhergoodsabroad。

Butthestruggleforcommercialsupremacyhadnotyetreallybegun。

Englandwaswithoutarival。Hernaviescontrolledthesea。Herarmiesandherinsularpositiongaveherpeaceathome。Theworldwasherstoexploit。FornearlyfiftyyearsshedominatedtheEuropean，American，andIndiantrade，whilethegreatwarsthenconvulsingsocietyweredestroyingpossiblecompetitivecapitalandstrainingconsumptiontoitsutmost。Thepioneeroftheindustrialnations，shethusreceivedsuchastartinthenewraceforwealththatitisonlytodaytheothernationshavesucceededinovertakingher。In1820thevolumeofhertrade(importsandexports)was68，000，000pounds。In1899ithadincreasedto815，000，000pounds，——

anincreaseof1200percentinthevolumeoftrade。

FornearlyonehundredyearsEnglandhasbeenproducingsurplusvalue。Shehasbeenproducingfarmorethansheconsumes，andthisexcesshasswelledthevolumeofhercapital。Thiscapitalhasbeeninvestedinherenterprisesathomeandabroad，andinhershipping。

In1898theStockExchangeestimatedBritishcapitalinvestedabroadat1，900，000，000pounds。Buthandinhandwithherforeigninvestmentshavegrownheradversebalancesoftrade。Forthetenyearsendingwith1868，heraverageyearlyadversebalancewas52，000，000pounds；endingwith1878，81，000，000pounds；endingwith1888，101，000，000pounds；andendingwith1898，133，000，000pounds。

Inthesingleyearof1897itreachedtheportentoussumof157，000，000pounds。

ButEngland"sadversebalancesoftradeinthemselvesarenothingatwhichtobefrightened。Hithertotheyhavebeenpaidfromouttheearningsofhershippingandtheinterestonherforeigninvestments。Butwhatdoescauseanxiety，however，isthat，relativetothetradedevelopmentofothercountries，herexporttradeisfallingoff，withoutacorrespondingdiminutionofherimports，andthathersecuritiesandforeignholdingsdonotseemabletostandtheaddedstrain。Thesesheisbeingforcedtosellinordertopulleven。AstheLondonTimesgloomilyremarks，"Weareenteringthetwentiethcenturyonthedowngrade，afteraprolongedperiodofbusinessactivity，highwages，highprofits，andoverflowingrevenue。"Inotherwords，themightygraspEnglandheldovertheresourcesandcapitaloftheworldisbeingrelaxed。Thecontrolofitscommerceandbankingisslippingthroughherfingers。

Thesaleofherforeignholdingsadvertisesthefactthatothernationsarecapableofbuyingthem，and，further，thattheseothernationsarebusilyproducingsurplusvalue。

Themovementhasbecomegeneral。Today，passingfromcountrytocountry，anever-increasingtideofcapitaliswellingup。

Productionisdoublingandquadruplinguponitself。ItusedtobethattheimpoverishedorundevelopednationsturnedtoEnglandwhenitcametoborrowing，butnowGermanyiscompetingkeenlywithherinthismatter。FranceisnotaversetolendinggreatsumstoRussia，andAustria-Hungaryhascapitalandtospareforforeignholdings。

NorhastheUnitedStatesfailedtopassfromthesideofthedebtortothatofthecreditornations。She，too，hasbecomewiseinthewayofproducingsurplusvalue。Shehasbeensuccessfulinhereffortstosecureeconomicemancipation。Possessingbut5percentoftheworld"spopulationandproducing32percentoftheworld"sfoodsupply，shehasbeenlookeduponastheworld"sfarmer；butnow，amidstgeneralconsternation，shecomesforwardastheworld"smanufacturer。In1888hermanufacturedexportsamountedto$130，300，087；in1896，to$253，681，541；in1897，to$279，652，721；in1898，to$307，924，994；in1899，to$338，667，794；andin1900，to$432，000，000。Regardinghergrowingfavorablebalancesoftrade，itmaybenotedthatnotonlyareherimportsnotincreasing，buttheyareactuallyfallingoff，whileherexportsinthelastdecadehaveincreased72。4percent。IntenyearsherimportsfromEuropehavebeenreducedfrom$474，000，000to$439，000，000；whileinthesametimeherexportshaveincreasedfrom$682，000，000to$1，111，000，000。

Herbalanceoftradeinherfavorin1895was$75，000，000；in1896，over$100，000，000；in1897，nearly$300，000，000；in1898，$615，000，000；in1899，$530，000，000；andin1900，$648，000，000。

Inthematterofiron，theUnitedStates，whichin1840hadnotdreamedofenteringthefieldofinternationalcompetition，in1897，asmuchtoherownsurpriseasanyoneelse"s，undersoldtheEnglishintheirownLondonmarket。In1899therewasbutoneAmericanlocomotiveinGreatBritain；but，ofthefivehundredlocomotivessoldabroadbytheUnitedStatesin1902，Englandboughtmorethananyothercountry。Russiaisoperatingathousandofthemonherownroadstoday。InoneinstancetheAmericanmanufacturerscontractedtodeliveralocomotiveinfourandone-halfmonthsfor$9250，theEnglishmanufacturersrequiringtwenty-fourmonthsfordeliveryat$14，000。TheClydeshipbuildersrecentlyplacedordersfor150，000tonsofplatesatasavingof$250，000，andtheAmericansteelgoingintothemakingofthenewLondonsubwayistakenasamatterofcourse。Americantoolsstandabovecompetitiontheworldover。Ready-madebootsandshoesarebeginningtofloodEurope，——

thesamewithmachinery，bicycles，agriculturalimplements，andallkindsofmanufacturedgoods。AcorrespondentfromHamburg，speakingoftheinvasionofAmericantrade，says:"Incidentally，itmayberemarkedthatthetypewritingmachinewithwhichthisarticleiswritten，aswellasthethousands——nay，hundredsofthousands——ofothersthatareinusethroughouttheworld，weremadeinAmerica；

thatitstandsonanAmericantable，inanofficefurnishedwithAmericandesks，bookcases，andchairs，whichcannotbemadeinEuropeofequalquality，sopracticalandconvenient，forasimilarprice。"

In1893and1894，becauseofthedistrustofforeigncapital，theUnitedStateswasforcedtobuybackAmericansecuritiesheldabroad；butin1897and1898sheboughtbackAmericansecuritiesheldabroad，notbecauseshehadto，butbecauseshechoseto。Andnotonlyhassheboughtbackherownsecurities，butinthelasteightyearsshehasbecomeabuyerofthesecuritiesofothercountries。InthemoneymarketsofLondon，Paris，andBerlinsheisalenderofmoney。Carryingthelargeststockofgoldintheworld，theworld，inmomentsofdanger，whencrisesofinternationalfinanceloomlarge，lookstohervastlendingabilityforsafety。

Thus，inafewswiftyears，hastheUnitedStatesdrawnuptothevanwherethegreatindustrialnationsarefightingforcommercialandfinancialempire。Thefiguresoftherace，inwhichshepassedEngland，areinteresting:

YearUnitedStatesExportsUnitedKingdomExports1875$497，263，737$1，087，497，000

1885673，593，5061，037，124，000

1895807，742，4151，100，452，000

1896986，830，0801，168，671，000

18971，079，834，2961，139，882，000

18981，233，564，8281，135，642，000

18991，253，466，0001，287，971，000

19001，453，013，6591，418，348，000

AsMr。HenryDemarestLloydhasnoted，"WhenthenewsreachedGermanyofthenewsteeltrustinAmerica，thestocksoftheironandsteelmillslistedontheBerlinBoursefell。"WhileEuropehasbeentalkinganddreamingofthegreatnesswhichwas，theUnitedStateshasbeenthinkingandplanninganddoingforthegreatnesstobe。Hercaptainsofindustryandkingsoffinancehavetoiledandsweatedatorganizingandconsolidatingproductionandtransportation。Butthishasbeenmerelythedevelopmentalstage，thetuning-upoftheorchestra。Withthetwentiethcenturyrisesthecurtainontheplay，——aplaywhichshallhavemuchinitofcomedyandavastdealoftragedy，andwhichhasbeenwellnamedTheCapitalisticConquestofEuropebyAmerica。Nationsdonotdieeasily，andoneofthefirstmovesofEuropewillbetheerectionoftariffwalls。America，however，willfittinglyreply，foralreadyhermanufacturersareestablishingworksinFranceandGermany。AndwhentheGermantradejournalsrefusedtoacceptAmericanadvertisements，theyfoundtheircountryflaminglybill-boardedinbuccaneerAmericanfashion。

M。Leroy-Beaulieu，theFrencheconomist，ispassionatelypreachingacommercialcombinationofthewholeContinentagainsttheUnitedStates，——acommercialalliancewhich，heboldlydeclares，shouldbecomeapoliticalalliance。Andinthisheisnotalone，findingreadysympathyandardentsupportinAustria，Italy，andGermany。

LordRoseberysaid，inarecentspeechbeforetheWolverhamptonChamberofCommerce:"TheAmericans，withtheirvastandalmostincalculableresources，theiracutenessandenterprise，andtheirhugepopulation，whichwillprobablybe100，000，000intwentyyears，togetherwiththeplantheyhaveadoptedforputtingaccumulatedwealthintogreatcooperativesyndicatesortrustsforthepurposeofcarryingonthisgreatcommercialwarfare，arethemostformidable……rivalstobefeared。"

TheLondonTimessays:"ItisuselesstodisguisethefactthatGreatBritainisbeingoutdistanced。Thecompetitiondoesnotcomefromtheglutcausedbymiscalculationastothehomedemand。Ourownsteel-makersknowbetterandarealarmed。Thethreatenedcompetitioninmarketshithertoourowncomesfromefficiencyinproductionsuchasneverbeforehasbeenseen。"EventheBritishnavalsupremacyisindanger，continuesthesamepaper，"for，ifweloseourengineeringsupremacy，ournavalsupremacywillfollow，unlessheldonsufferancebyoursuccessfulrivals。"

AndtheEdinburghEveningNewssays，witheditorialgloom:"Theironandsteeltradeshavegonefromus。WhenthefictitiousprosperitycausedbytheexpenditureofourownGovernmentandthatofEuropeannationsonarmamentsceases，halfofthemenemployedintheseindustrieswillbeturnedintothestreets。Theoutlookisappalling。Whatsufferingwillhavetobeenduredbeforetheworkersrealizethatthereisnothingleftforthembutemigration!"

Thattheremustbealimittotheaccumulationofcapitalisobvious。Thedownwardcourseoftherateofinterest，notwithstandingthatmanynewemploymentshavebeenmadepossibleforcapital，indicateshowlargeistheincreaseofsurplusvalue。

ThisdeclineoftheinterestrateisinaccordwithBohm-Bawerk"slawof"diminishingreturns。"Thatis，whencapital，likeanythingelse，hasbecomeover-plentiful，lesslucrativeusecanonlybefoundfortheexcess。Thisexcess，notbeingabletoearnsomuchaswhencapitalwaslessplentiful，competesforsafeinvestmentsandforcesdowntheinterestrateonallcapital。Mr。CharlesA。

Conanthaswelldescribedthekeennessofthescrambleforsafeinvestments，evenattheprevailinglowratesofinterest。AtthecloseofthewarwithTurkey，theGreekloan，guaranteedbyGreatBritain，France，andRussia，wasfloatedwithstrikingease。

Regardlessofthesmallreturn，theamountofferedatParis，(41，000，000francs)，wassubscribedfortwenty-threetimesover。

GreatBritain，France，Germany，Holland，andtheScandinavianStates，ofrecentyears，haveallengagedinconvertingtheirsecuritiesfrom5percentsto4percents，from4。5percentsto3。5percents，andthe3。5percentsinto3percents。

GreatBritain，France，Germany，andAustria-Hungary，accordingtothecalculationtakenin1895bytheInternationalStatisticalInstitute，holdforty-sixbillionsofcapitalinvestedinnegotiablesecuritiesalone。YetParissubscribedforherportionoftheGreekloantwenty-threetimesover!Inshort，moneyischeap。AndrewCarnegieandhisbrotherbourgeoiskingsgiveawaymillionsannually，butstillthetidewellsup。Thesevastaccumulationshavemadepossible"wild-catting，"fraudulentcombinations，fakeenterprises，Hooleyism；butsuchstealings，greatthoughtheybe，havelittleornoeffectinreducingthevolume。Thetimeispastwhenstartlinginventions，orrevolutionsinthemethodofproduction，canbreakupthegrowingcongestion；yetthissavedcapitaldemandsanoutlet，somewhere，somehow。

Whenagreatnationhasequippeditselftoproducefarmorethanitcan，underthepresentdivisionoftheproduct，consume，itseeksothermarketsforitssurplusproducts。Whenasecondnationfindsitselfsimilarlycircumstanced，competitionfortheseothermarketsnaturallyfollows。Withtheadventofathird，afourth，afifth，andofdiversothernations，thequestionofthedisposalofsurplusproductsgrowsserious。Andwitheachofthesenationspossessing，overandbeyonditsactivecapital，greatandgrowingmassesofidlecapital，andwhentheveryforeignmarketsforwhichtheyarecompetingarebeginningtoproducesimilarwaresforthemselves，thequestionpassestheseriousstageandbecomescritical。

Neverhasthestruggleforforeignmarketsbeensharperthanatthepresent。Theyaretheonegreatoutletforcongestedaccumulations。

Predatorycapitalwanderstheworldover，seekingwhereitmayestablishitself。Thisurgentneedforforeignmarketsisforcingupontheworld-stageaneraofgreatcolonialempire。Butthisdoesnotstand，asinthepast，forthesubjugationofpeoplesandcountriesforthesakeofgainingtheirproducts，butfortheprivilegeofsellingthemproducts。Thetheoryoncewas，thatthecolonyoweditsexistenceandprosperitytothemothercountry；buttodayitisthemothercountrythatowesitsexistenceandprosperitytothecolony。Andinthefuture，whenthatsupportingcolonybecomeswiseinthewayofproducingsurplusvalueandsendsitsgoodsbacktoselltothemothercountry，whatthen？Thentheworldwillhavebeenexploited，andcapitalisticproductionwillhaveattaineditsmaximumdevelopment。

Foreignmarketsandundevelopedcountrieslargelyretardthatmoment。Thefavoredportionsoftheearth"ssurfacearealreadyoccupied，thoughtheresourcesofmanyareyetvirgin。Thattheyhavenotlongsincebeenwrestedfromthehandsofthebarbarousanddecadentpeopleswhopossessthemisdue，nottothemilitaryprowessofsuchpeoples，buttothejealousvigilanceoftheindustrialnations。Thepowersholdoneanotherback。TheTurklivesbecausethewayisnotyetcleartoanamicabledivisionofhimamongthepowers。AndtheUnitedStates，supremethoughsheis，opposesthepartitionofChina，andintervenesherhugebulkbetweenthehungrynationsandthemongrelSpanishrepublics。Capitalstandsinitsownway，wellingupandwellingupagainsttheinevitablemomentwhenitshallburstallbondsandsweepresistlesslyacrosssuchvaststretchesasChinaandSouthAmerica。

Andthentherewillbenomoreworldstoexploit，andcapitalismwilleitherfallback，crushedunderitsownweight，orachangeofdirectionwilltakeplacewhichwillmarkanewerainhistory。

TheFarEastaffordsanilluminatingspectacle。WhiletheWesternnationsarecrowdinghungrilyin，whilethePartitionofChinaiscommingledwiththeclamorfortheSpheresofInfluenceandtheOpenDoor，otherforcesarenonethelesspotentlyatwork。NotonlyaretheyoungWesternpeoplespressingtheolderonestothewall，buttheEastitselfisbeginningtoawake。Americantradeisadvancing，andBritishtradeislosingground，whileJapan，China，andIndiaaretakingahandinthegamethemselves。

In1893，100，000piecesofAmericandrillswereimportedintoChina；

in1897，349，000。In1893，252，000piecesofAmericansheetingswereimportedagainst71，000British；butin1897，566，000piecesofAmericansheetingswereimportedagainstonly10，000British。Thecottongoodsandyarntrade(whichforms40percentofthewholetradewithChina)showsaremarkableadvanceonthepartoftheUnitedStates。DuringthelasttenyearsAmericahasincreasedherimportationofplaingoodsby121percentinquantityand59。5percentinvalue，whilethatofEnglandandIndiacombinedhasdecreased13。75percentinquantityand8percentinvalue。LordCharlesBeresford，fromwhose"Break-upofChina"thesefiguresaretaken，statesthatEnglishyarnhasrecededandIndianyarnadvancedtothefront。In1897，140，000piculsofIndianyarnwereimported，18，000ofJapanese，4500ofShanghai-manufactured，and700ofEnglish。

Japan，whobutyesterdayemergedfromthemediaevalruleoftheShogunateandseizedinonefellswoopthescientificknowledgeandcultureoftheOccident，isalreadytodayshowingwhatwisdomshehasacquiredintheproductionofsurplusvalue，andispreparingherselfthatshemaytomorrowplaytheparttoAsiathatEnglanddidtoEuropeonehundredyearsago。Thatthedifferenceintheworld"saffairswroughtbythoseonehundredyearswillpreventhersucceedingismanifest；butitisequallymanifestthattheycannotpreventherplayingaleadingpartintheindustrialdramawhichhascommencedontheEasternstage。HerimportsintotheportofNewchangin1891amountedtobut22，000taels；butin1897theyhadincreasedto280，000taels。Inmanufacturedgoods，frommatches，watches，andclockstotherollingstockofrailways，shehasalreadygivenstiffshockstohercompetitorsintheAsiaticmarkets；andthiswhilesheisvirtuallyyetintheequipmentstageofproduction。Erelongshe，too，willbefurnishinghersharetothegrowingmassoftheworld"scapital。

AsregardsGreatBritain，thegianttraderwhohassolongovershadowedAsiaticcommerce，LordCharlesBeresfordsays:"Butcompetitionistellingadversely；theenergyoftheBritishmerchantisbeingequalledbyothernationals……ThecompetitionoftheChineseandtheintroductionofsteamintothecountryarealsocombiningtoproducechangedconditionsinChina。"Butfarmoreominousistheplaintivenotehesoundswhenhesays:"Newindustriesmustbeopenedup，andIwouldespeciallydirecttheattentionoftheChambersofCommerce(British)to……thefactthatthemorethenativecompeteswiththeBritishmanufacturerincertainclassesoftrade，themoremachineryhewillneed，andtheordersforsuchmachinerywillcometothiscountryifourmachinerymanufacturersareenterprisingenough。"

TheOrientisbeginningtoshowwhatanimportantfactoritwillbecome，underWesternsupervision，inthecreationofsurplusvalue。

EvenbeforethebarrierswhichrestrainWesterncapitalareremoved，theEastwillbeinafairwaytowardbeingexploited。AnanalysisofLordBeresford"smessagetotheChambersofCommercediscloses，first，thattheEastisbeginningtomanufactureforitself；and，second，thatthereisapromiseofkeencompetitionintheWestfortheprivilegeofsellingtherequiredmachinery。Theinexorablequeryarises:WHATISTHEWESTTODOWHENITHASFURNISHEDTHIS

MACHINERY？AndwhennotonlytheEast，butallthenowundevelopedcountries，confront，withsurplusproductsintheirhands，theoldindustrialnations，capitalisticproductionwillhaveattaineditsmaximumdevelopment。

Butbeforethattimemustinterveneaperiodwhichbidsonepauseforbreath。Anewromance，likeuntononeinallthepast，theeconomicromance，willbeborn。Forthedazzlingprizeofworld-

empirewillthenationsoftheearthgoupinharness。Powerswillriseandfall，andmightycoalitionsshapeanddissolveintheswiftwhirlofevents。Vassalnationsandsubjectterritorieswillbebandiedbackandforthlikesomanyarticlesoftrade。Andwiththeinevitabledisplacementofeconomiccentres，itisfairtopresumethatpopulationswillshifttoandfro，astheyoncedidfromtheSouthtotheNorthofEnglandontheriseofthefactorytowns，orfromtheOldWorldtotheNew。Colossalenterpriseswillbeprojectedandcarriedthrough，andcombinationsofcapitalandfederationsoflaborbeeffectedonacyclopeanscale。

Concentrationandorganizationwillbeperfectedinwayshithertoundreamed。Thenationwhichwouldkeepitsheadabovethetidemustaccuratelyadjustsupplytodemand，andeliminatewastetothelastleastparticle。Standardsoflivingwillmostlikelydescendformillionsofpeople。Withtheincreaseofcapital，thecompetitionforsafeinvestments，andtheconsequentfalloftheinterestrate，theprincipalwhichtodayearnsacomfortableincomewouldnotthensupportabareexistence。Savingtowardoldagewouldceaseamongtheworkingclasses。AndasthemerchantcitiesofItalycrashedwhentradeslippedfromtheirhandsonthediscoveryofthenewroutetotheIndiesbywayoftheCapeofGoodHope，sowilltherecometimesoftremblingforsuchnationsashavefailedtograsptheprizeofworld-empire。Inthatgivendirectiontheywillhaveattainedtheirmaximumdevelopment，beforethewholeworld，inthesamedirection，hasattainedits。Therewillnolongerberoomforthem。Butiftheycansurvivetheshockofbeingflungoutoftheworld"sindustrialorbit，achangeindirectionmaythenbeeasilyeffected。Thatthedecadentandbarbarouspeopleswillbecrushedisafairpresumption；likewisethatthestrongerbreedswillsurvive，enteringuponthetransitionstagetowhichalltheworldmustultimatelycome。

Thischangeofdirectionmustbeeithertowardindustrialoligarchiesorsocialism。Eitherthefunctionsofprivatecorporationswillincreasetilltheyabsorbthecentralgovernment，orthefunctionsofgovernmentwillincreasetillitabsorbsthecorporations。Muchmaybesaidonthechanceoftheoligarchy。

Shouldanoldmanufacturingnationloseitsforeigntrade，itissafetopredictthatastrongeffortwouldbemadetobuildasocialisticgovernment，butitdoesnotfollowthatthiseffortwouldbesuccessful。WiththemoneyedclasscontrollingtheStateanditsrevenuesandallthemeansofsubsistence，andguardingitsowninterestswithjealouscare，itisnotatallimpossiblethatastrongcurbcouldbeputuponthemassestillthecrisiswerepast。

Ithasbeendonebefore。Thereisnoreasonwhyitshouldnotbedoneagain。Atthecloseofthelastcentury，suchamovementwascrushedbyitsownfollyandimmaturity。In1871thesoldiersoftheeconomicrulersstampedout，rootandbranch，awholegenerationofmilitantsocialists。

Oncethecrisiswerepast，therulingclass，stillholdingthecurbinordertomakeitselfmoresecure，wouldproceedtoreadjustthingsandtobalanceconsumptionwithproduction。Havingamonopolyofthesafeinvestments，thegreatmassesofunremunerativecapitalwouldbedirected，nottotheproductionofmoresurplusvalue，buttothemakingofpermanentimprovements，whichwouldgiveemploymenttothepeople，andmakethemcontentwiththeneworderofthings。Highways，parks，publicbuildings，monuments，couldbebuilded；norwoulditbeoutofplacetogivebetterfactoriesandhomestotheworkers。Suchinitselfwouldbesocialistic，savethatitwouldbedonebytheoligarchs，aclassapart。Withtheinterestratedowntozero，andnofieldfortheinvestmentofsporadiccapital，savingsamongthepeoplewouldutterlycease，andold-agepensionsbegrantedasamatterofcourse。Itisalsoalogicalnecessityofsuchasystemthat，whenthepopulationbegantopressagainstthemeansofsubsistence，(expansionbeingimpossible)，thebirthrateofthelowerclasseswouldbelessened。

Whetherbytheirowninitiative，orbytheinterferenceoftherulers，itwouldhavetobedone，anditwouldbedone。Inotherwords，theoligarchywouldmeanthecapitalizationoflaborandtheenslavementofthewholepopulation。Butitwouldbeafairer，justerformofslaverythananytheworldhasyetseen。Thepercapitawageandconsumptionwouldbeincreased，and，withastringentcontrolofthebirthrate，thereisnoreasonwhysuchacountryshouldnotbesoruledthroughmanygenerations。

Ontheotherhand，asthecapitalisticexploitationoftheplanetapproachesitsmaximum，andcountriesarecrowdedoutofthefieldofforeignexchanges，thereisalargelikelihoodthattheirchangeindirectionwillbetowardsocialism。Werethetheoryofcollectiveownershipandoperationthentoariseforthefirsttime，suchamovementwouldstandsmallchanceofsuccess。Butsuchisnotthecase。Thedoctrineofsocialismhasflourishedandgrownthroughoutthenineteenthcentury；itstenetshavebeenpreachedwherevertheinterestsoflaborandcapitalhaveclashed；andithasreceivedexemplificationtimeandagainbytheState"sassumptionoffunctionswhichhadalwaysbelongedsolelytotheindividual。

Whencapitalisticproductionhasattaineditsmaximumdevelopment，itmustconfrontadividingoftheways；andthestrengthofcapitalontheonehand，andtheeducationandwisdomoftheworkersontheother，willdeterminewhichpathsocietyistotravel。Itispossible，consideringtheinertiaofthemasses，thatthewholeworldmightintimecometobedominatedbyagroupofindustrialoligarchies，orbyonegreatoligarchy，butitisnotprobable。

Thatsporadicoligarchiesmayflourishfordefiniteperiodsoftimeishighlypossible；thattheymaycontinuetodosoisashighlyimprobable。Theprocessionoftheageshasmarkednotonlytheriseofman，buttheriseofthecommonman。Fromthechattelslave，ortheserfchainedtothesoil，tothehighestseatsinmodernsociety，hehasrisen，rungbyrung，amidthecrumblingofthedivinerightofkingsandthecrashoffallingsceptres。Thathehasdonethis，onlyintheendtopassintotheperpetualslaveryoftheindustrialoligarch，issomethingatwhichhiswholepastcriesinprotest。Thecommonmanisworthyofabetterfuture，orelseheisnotworthyofhispast。

NOTE——Theabovearticlewaswrittenaslongagoas1898。Theonlyalterationhasbeenthebringingupto1900ofafewofitsstatistics。Asacommercialventureofanauthor，ithasaninterestinghistory。Itwaspromptlyacceptedbyoneoftheleadingmagazinesandpaidfor。Theeditorconfessedthatitwas"oneofthosearticlesonecouldnotpossiblyletgoofafteritwasonceinhispossession。"Publicationwasvoluntarilypromisedtobeimmediate。Thentheeditorbecameafraidofitstooradicalnature，forfeitedthesumpaidforit，anddidnotpublishit。Nor，offeredfarandwide，couldanyothereditorofbourgeoisperiodicalsbefoundwhowasrashenoughtopublishit。Thus，forthefirsttime，aftersevenyears，itappearsinprint。

AREVIEW

TworemarkablebooksareGhent"s"OurBenevolentFeudalism"{7}andBrooks"s"TheSocialUnrest。"{8}Inthesetwobookstheoppositesidesofthelaborproblemareexpounded，eachwriterdevotinghimselfwithapprehensiontothesidehefearsandviewswithdisfavor。Itwouldappearthattheyhavesetthemselvesthetaskofcollating，asawarning，thephenomenaoftwocountersocialforces。

Mr。Ghent，whoissympatheticwiththesocialistmovement，followswithcynicfeareveryaggressiveactofthecapitalistclass。Mr。

Brooks，whoyearnsfortheperpetuationofthecapitalistsystemaslongaspossible，followswithgravedismayeachaggressiveactofthelaborandsocialistorganizations。Mr。Ghenttracestheemasculationoflaborbycapital，andMr。Brookstracestheemasculationofindependentcompetingcapitalbylabor。Inshort，eachmarshalsthefactsofasideinthetwosideswhichgotomakeastrugglesogreatthateventheFrenchRevolutionisinsignificantbesideit；forthislaterstruggle，forthefirsttimeinthehistoryofstruggles，isnotconfinedtoanyparticularportionoftheglobe，butinvolvesthewholeofit。

Startingontheassumptionthatsocietyisatpresentinastateofflux，Mr。Ghentseesitrapidlycrystallizingintoastatuswhichcanbestbedescribedassomethinginthenatureofabenevolentfeudalism。HelaughstoscornanyimmediaterealizationoftheMarxiandream，whileTolstoyanutopiasandKropotkiniancommunisticunionsofshopandfarmaretoowildtomeritconsideration。ThecomingstatuswhichMr。Ghentdepictsisaclassdominationbythecapitalists。Laborwilltakeitsdefiniteplaceasadependentclass，livinginaconditionofmachineservitudefairlyanalogoustothelandservitudeoftheMiddleAges。Thatistosay，laborwillbeboundtothemachine，thoughlessharshly，infashionsomewhatsimilartothatinwhichtheearlierserfwasboundtothesoil。Ashesays，"Bondagetothelandwasthebasisofvilleinageintheoldregime；bondagetothejobwillbethebasisofvilleinageinthenew。"

Atthetopofthenewsocietywilltowerthemagnate，thenewfeudalbaron；atthebottomwillbefoundthewastrelsandtheinefficients。Thenewsocietyhegradesasfollows:

"I。Thebarons，gradedonthebasisofpossessions。

"II。Thecourtagentsandretainers。(Thisclasswillincludetheeditorsof"respectable"and"safe"newspapers，thepastorsof"conservative"and"wealthy"churches，theprofessorsandteachersinendowedcollegesandschools，lawyersgenerally，andmostjudgesandpoliticians)。

"III。Theworkersinpureandappliedscience，artists，andphysicians。

"IV。Theentrepreneurs，themanagersofthegreatindustries，transformedintoasalariedclass。

"V。Theforemenandsuperintendents。Thisclasshasheretoforebeenrecruitedlargelyfromtheskilledworkers，butwiththegrowthoftechnicaleducationinschoolsandcolleges，andthedevelopmentoffixedcaste，itislikelytobecomeentirelydifferentiated。

"VI。Thevilleinsofthecitiesandtowns，moreorlessregularlyemployed，whodoskilledworkandarepartiallyprotectedbyorganization。

"VII。Thevilleinsofthecitiesandtownswhodounskilledworkandareunprotectedbyorganization。Theywillcomprisethelaborers，domestics，andclerks。

"VIII。Thevilleinsofthemanorialestates，ofthegreatfarms，themines，andtheforests。

"IX。Thesmall-unitfarmers(land-owning)，thepettytradesmen，andmanufacturers。

"X。Thesubtenantsofthemanorialestatesandgreatfarms(correspondingtotheclassof"freetenants"intheoldFeudalism)。

"XI。Thecotters。

"XII。Thetramps，theoccasionallyemployed，theunemployed——thewastrelsofthecityandcountry。"

"ThenewFeudalism，likemostautocracies，willfosternotonlythearts，butalsocertainkindsoflearning——particularlythekindswhichareunlikelytodisturbthemindsofthemultitude。AfutureMarsh，orCope，orLeComtewillbeliberallypatronizedandleftfreetodiscoverwhathewill；andso，too，anEdisonoraMarconi。

Onlytheymustnotmeddlewithanythingrelatingtosocialscience。"

ItmustbeconfessedthatMr。Ghent"sargumentsarecunninglycontrivedandarrayed。Theymustbereadtobeappreciated。Asanexampleofhisstyle，whichatthesametimegeneralizesaportionofhisargument，thefollowingmaywellbegiven:

"ThenewFeudalismwillbebutanorderlyoutgrowthofpresenttendenciesandconditions。Allsocietiesevolvenaturallyoutoftheirpredecessors。Insociology，asinbiology，thereisnocellwithoutaparentcell。Thesocietyofeachgenerationdevelopsamultitudeofspontaneousandacquiredvariations，andoutofthese，byablendingprocessofnaturalandconsciousselection，thesucceedingsocietyisevolved。Theneworderwilldifferinnoimportantrespectsfromthepresent，exceptinthecompleterdevelopmentofitsmoresalientfeatures。Thevisitorfromanotherplanetwhohadknowntheoldandshouldseethenewwouldnotebutfewchanges。AlteretIdem——anotheryetthesame——hewouldsay。

Frommagnatetobaron，fromworkmantovillein，frompublicisttocourtagentandretainer，willbechangesofstateandfunctionsoslightastoeludeallbutthekeenesteyes。"

Andinconclusion，toshowhowbenevolentandbeautifulthisnewfeudalismofourswillbe，Mr。Ghentsays:"Peaceandstabilityitwillmaintainatallhazards；andthemass，rememberingthechaos，theturmoil，theinsecurityofthepast，willblessitsreign……

Efficiency——thefacultyofgettingthings——isatlastrewardedasitshouldbe，fortheefficienthaveinheritedtheearthanditsfulness。Thelowly，whosehappinessisgreaterandwhosewelfareismorethoroughlyconservedwhengovernedthanwhengoverning，asatwentieth-centuryphilosophersaidofthem，aresettledandhappyinthestatewhichreasonandexperienceteachistheirGod-appointedlot。Theyarecomfortabletoo；andifthepatriarchalidealofavineandfigtreeforeachisnotyetattained，atleasteachhashisrentedpatchinthecountryorhisrentedcellinacitybuilding。Breadandthecircusarefreelygiventothedeserving，andasfortheundeserving，theyaremerelyreapingtherewardsoftheircontumacyandpride。Orderreigns，eachhashisjustlyappointedshare，andthestaterests，insecurity，"laptinuniversallaw。""

Mr。Brooks，ontheotherhand，seesrisinganddissolvingandrisingagaininthesocialfluxtheominousformsofanewsocietywhichisthedirectantithesisofabenevolentfeudalism。Hetremblesattherashintrepidityofthecapitalistswhofightthelaborunions，forbysuchrashnesshegreatlyfearsthatlaborwillbedriventoexpressitsaimsandstrengthinpoliticalterms，whichtermswillinevitablybesocialisticterms。

Tokeepdowntherisingtideofsocialism，hepreachesgreatermeeknessandbenevolencetothecapitalists。Nolongermaytheyclaimtherighttoruntheirownbusiness，tobeatdownthelaborer"sstandardoflivingforthesakeofincreasedprofits，todictatetermsofemploymenttoindividualworkers，towaxrighteouslyindignantwhenorganizedlabortakesahandintheirbusiness。Nolongermaythecapitalistsay"my"business，oreventhink"my"business；hemustsay"our"business，andthink"our"

businessaswell，acceptinglaborasapartnerwhosevoicemustbeheard。Andifthecapitalistsdonotbecomemoremeekandbenevolentintheirdealingswithlabor，laborwillbeantagonizedandwillproceedtowreakterriblepoliticalvengeance，andthepresentsocialfluxwillhardenintoastatusofsocialism。

Mr。BrooksdreamsofasocietyatwhichMr。Ghentsneersas"aslightlymodifiedindividualism，whereineachunitsecuresthejustrewardofhiscapacityandservice。"Toattainthishappystate，Mr。Brooksimposescircumspectionuponthecapitalistsintheirrelationswithlabor。"Ifthesocialisticspiritistobeheldinabeyanceinthiscountry，businessesofthischaracter(anthracitecoalmining)mustbehandledwithextraordinarycaution。"Whichistosay，thattowithstandtheadvanceofsocialism，agreatandgreatermeasureofMr。Ghent"sBENEVOLENCEwillberequired。

Againandagain，Mr。Brooksreiteratesthedangerheseesinharshlytreatinglabor。"ItisnotprobablethatemployerscandestroyunionismintheUnitedStates。Adroitanddesperateattemptswill，however，bemade，ifwemeanbyunionismtheundisciplinedandaggressivefactofvigorousanddeterminedorganizations。Ifcapitalshouldprovetoostronginthisstruggle，theresultiseasytopredict。Theemployershaveonlytoconvinceorganizedlaborthatitcannotholditsownagainstthecapitalistmanager，andthewholeenergythatnowgoestotheunionwillturntoanaggressivepoliticalsocialism。Itwillnotbetheharmlesssympathywithincreasedcityandstatefunctionswhichtradeunionsalreadyfeel；

itwillbecomeaturbulentpoliticalforcebentuponusingeveryweaponoftaxationagainsttherich。"

"Themostconcreteimpulsethatnowfavorssocialisminthiscountryistheinsanepurposetodeprivelabororganizationsofthefullandcompleterightsthatgowithfederatedunionism。"

"Thatwhichteachesaunionthatitcannotsucceedasaunionturnsittowardsocialism。InlongstrikesintownslikeMarlboroandBrookfieldstrongunionsaredefeated。Hundredsofmenleavethesetownsforshoe-centreslikeBrockton，wheretheyarenowvotingthesocialistticket。Thesocialistmayorofthiscitytellsme，"Themenwhocometousnowfromtownswheretheyhavebeenthoroughlywhippedinastrikeareamongourmostactiveworkingsocialists。"

Thebitternessengenderedbythissenseofdefeatisturnedtopolitics，asitwillthroughoutthewholecountry，iforganizationoflaborisdeprivedofitsrights。"

"Thisenmityofcapitaltothetradeunioniswatchedwithgleebyeveryintelligentsocialistinourmidst。Everyunionthatisbeatenordiscouragedinitsstruggleisripeningfruitforsocialism。"

"Therealperilwhichwenowfaceisthethreatofaclassconflict。

IfcapitalisminsistsuponthepolicyofoutragingthesavingaspirationoftheAmericanworkmantoraisehisstandardofcomfortandleisure，everyelementofclassconflictwillstrengthenamongus。"

"Wehaveonlytohumiliatewhatisbestinthetradeunion，andtheneveryworstfeatureofsocialismisfasteneduponus。"

ThisstrongtendencyintheranksoftheworkerstowardsocialismiswhatMr。Brookscharacterizesthe"socialunrest"；andhehopestoseetheRepublican，theClevelandDemocrat，andtheconservativeandlargepropertyinterests"bandtogetheragainstthiscommonfoe，"