"according to the political economists of the school of adam smith and leon say, cheapness is the word in which may be summed up the [42]advantages of unlimited competition. but why persist in considering the effect of cheapness with a view only to the momentary advantage of the consumer? cheapness is advantageous to the consumer at the cost of introducing the seeds of ruinous anarchy among the producers. cheapness is, so to speak, the hammer with which the rich among the producers crush their poorer rivals. cheapness is the trap into which the daring speculators entice the hard-workers. cheapness is the sentence of death to the producer on a small scale who has no money to invest in the purchase of machinery that his rich rivals can easily procure. cheapness is the great instrument in the hands of monopoly; it absorbs the small manufacturer, the small shopkeeper, the small proprietor; it is, in one word, the destruction of the middle classes for the advantage of a few industrial oligarchs.
"ought we, then, to consider cheapness as a curse? no one would attempt to maintain such an absurdity. but it is the specialty of wrong principles to turn good into evil and to corrupt all things. under the system of competition cheapness is only a provisional and fallacious advantage. it is maintained only so long as there is a struggle; no sooner have the rich competitors driven out their poorer rivals than prices rise. competition leads to monopoly, for the same reason cheapness leads to high prices. [43]thus, what has been made use of as a weapon in the contest between the producers, sooner or later becomes a cause of impoverishment among the consumers. and if to this cause we add the others we have already enumerated, first among which must be ranked the inordinate increase of the population, we shall be compelled to recognize the impoverishment of the mass of the consumers as a direct consequence of competition.
"but, on the other hand, this very competition which tends to dry up the sources of demand, urges production to over-supply. the confusion produced by the universal struggle prevents each producer from knowing the state of the market. he must work in the dark, and trust to chance for a sale. why should he check the supply, especially as he can throw any loss on the workman whose wages are so pre-eminently liable to rise and fall? even when production is carried on at a loss the manufacturers still often carry it on, because they will not let their machinery, &c., stand idle, or risk the loss of raw material, or lose their customers; and because productive industry as carried on under the competitive system being nothing else than a game of chance, the gambler will not lose his chance of a lucky stroke.
"thus, and we cannot too often insist upon it, competition necessarily tends to increase supply and to diminish consumption; its tendency [44]therefore is precisely the opposite of what is sought by economic science; hence it is not merely oppressive but foolish as well."
"and in all this, in order to avoid dwelling on truths which have become commonplaces, and sound declamatory from their very truth, we have said nothing of the frightful moral corruption which industry, organized, or more properly speaking, disorganized, as it is at the present day, has introduced among the middle classes. everything has become venal, and competition invades even the domain of thought.
"the factory crushing the workshop; the showy establishment absorbing the humble shop; the artisan who is his own master replaced by the day-laborer; cultivation by the plow superseding that by the spade, and bringing the poor man's field under disgraceful homage to the money-lender; bankruptcies multiplied; manufacturing industry transformed by the ill-regulated extension of credit into a system of gambling where no one, not even the rogue, can be sure of winning; in short a vast confusion calculated to arouse jealousy, mistrust, and hatred, and to stifle, little by little, all generous aspirations, all faith, self-sacrifice, and poetry—such is the hideous but only too faithful picture of the [45]results obtained by the application of the principle of competition."[2]
the fourierists, through their principal organ, m. considérant, enumerate the evils of the existing civilisation in the following order:—
1. it employs an enormous quantity of labor and of human power unproductively, or in the work of destruction.
"in the first place there is the army, which in france, as in all other countries, absorbs the healthiest and strongest men, a large number of the most talented and intelligent, and a considerable part of the public revenue.... the existing state of society develops in its impure atmosphere innumerable outcasts, whose labor is not merely unproductive, but actually destructive: adventurers, prostitutes, people with no acknowledged means of living, beggars, convicts, swindlers, thieves, and others whose numbers tend rather to increase than to diminish....
"to the list of unproductive labor fostered by our state of society must be added that of the judicature and of the bar, of the courts of law and magistrates, the police, jailers, executioners, &c.,—functions indispensable to the state of society as it is.
[46]"also people of what is called 'good society'; those who pass their lives in doing nothing; idlers of all ranks.
"also the numberless custom-house officials, tax-gatherers, bailiffs, excise-men; in short, all that army of men which overlooks, brings to account, takes, but produces nothing.
"also the labors of sophists, philosophers, metaphysicians, political men, working in mistaken directions, who do nothing to advance science, and produce nothing but disturbance and sterile discussions; the verbiage of advocates, pleaders, witnesses, &c.
"and finally all the operations of commerce, from those of the bankers and brokers, down to those of the grocer behind his counter."[3]
secondly, they assert that even the industry and powers which in the present system are devoted to production, do not produce more than a small portion of what they might produce if better employed and directed:—
"who with any good-will and reflection will not see how much the want of coherence—the disorder, the want of combination, the parcelling out of labor and leaving it wholly to individual action without any organization, without any [47]large or general views—are causes which limit the possibilities of production, and destroy, or at least waste, our means of action? does not disorder give birth to poverty, as order and good management give birth to riches? is not want of combination a source of weakness, as combination is a source of strength? and who can say that industry, whether agricultural, domestic, manufacturing, scientific, artistic, or commercial, is organized at the present day either in the state or in municipalities? who can say that all the work which is carried on in any of these departments is executed in subordination to any general views, or with foresight, economy, and order? or, again, who can say that it is possible in our present state of society to develop, by a good education, all the faculties bestowed by nature on each of its members; to employ each one in functions which he would like, which he would be the most capable of, and which, therefore, he could carry on with the greatest advantage to himself and to others? has it even been so much as attempted to solve the problems presented by varieties of character so as to regulate and harmonize the varieties of employments in accordance with natural aptitudes? alas! the utopia of the most ardent philanthropists is to teach reading and writing to twenty-five millions of the french people! and in the present state [48]of things we may defy them to succeed even in that!
"and is it not a strange spectacle, too, and one which cries out in condemnation of us, to see this state of society where the soil is badly cultivated, and sometimes not cultivated at all; where man is ill lodged, ill clothed, and yet where whole masses are continually in need of work and pining in misery because they cannot find it? of a truth we are forced to acknowledge that if the nations are poor and starving it is not because nature has denied the means of producing wealth, but because of the anarchy and disorder in our employment of those means; in other words, it is because society is wretchedly constituted and labor unorganized.
"but this is not all, and you will have but a faint conception of the evil if you do not consider that to all these vices of society, which dry up the sources of wealth and prosperity, must be added the struggle, the discord, the war, in short under many names and many forms which society cherishes and cultivates between the individuals that compose it. these struggles and discords correspond to radical oppositions—deep-seated antinomies between the various interests. exactly in so far as you are able to establish classes and categories within the nation; in so far, also, you will have opposition of interests and internal warfare either avowed or secret, even if you [49]take into consideration the industrial system only."[4]
one of the leading ideas of this school is the wastefulness and at the same time the immorality of the existing arrangements for distributing the produce of the country among the various consumers, the enormous superfluity in point of number of the agents of distribution, the merchants, dealers, shopkeepers and their innumerable, employés, and the depraving character of such a distribution of occupations.
"it is evident that the interest of the trader is opposed to that of the consumer and of the producer. has he not bought cheap and under-valued as much as possible in all his dealings with the producer, the very same article which, vaunting its excellence, he sells to you as dear as he can? thus the interest of the commercial body, collectively and individually, is contrary to that of the producer and of the consumer—that is to say, to the interest of the whole body of society.
"the trader is a go-between, who profits by the general anarchy and the non-organization of [50]industry. the trader buys up products, he buys up everything; he owns and detains everything, in such sort that:—
"1stly. he holds both production and consumption under his yoke, because both must come to him either finally for the products to be consumed, or at first for the raw materials to be worked up. commerce with all its methods of buying, and of raising and lowering prices, its innumerable devices, and its holding everything in the hands of middle-men, levies toll right and left; it despotically gives the law to production and consumption, of which it ought to be only the subordinate.
"2ndly. it robs society by its enormous profits—profits levied upon the consumer and the producer, and altogether out of proportion to the services rendered, for which a twentieth of the persons actually employed would be sufficient.
"3rdly. it robs society by the subtraction of its productive forces; taking off from productive labor nineteen-twentieths of the agents of trade who are mere parasites. thus, not only does commerce rob society by appropriating an exorbitant share of the common wealth, but also by considerably diminishing the productive energy of the human beehive. the great majority of traders would return to productive work if a rational system of commercial organization were [51]substituted for the inextricable chaos of the present state of things.
"4thly. it robs society by the adulteration of products, pushed at the present day beyond all bounds. and in fact, if a hundred grocers establish themselves in a town where before there were only twenty, it is plain that people will not begin to consume five times as many groceries. hereupon the hundred virtuous grocers have to dispute between them the profits which before were honestly made by the twenty; competition obliges them to make it up at the expense of the consumer, either by raising the prices as sometimes happens, or by adulterating the goods as always happens. in such a state of things there is an end to good faith. inferior or adulterated goods are sold for articles of good quality whenever the credulous customer is not too experienced to be deceived. and when the customer has been thoroughly imposed upon, the trading conscience consoles itself by saying, 'i state my price; people can take or leave; no one is obliged to buy.' the losses imposed on the consumers by the bad quality or the adulteration of goods are incalculable.
"5thly. it robs society by accumulations, artificial or not, in consequence of which vast quantities of goods, collected in one place, are damaged and destroyed for want of a sale. fourier (th. des quat. mouv., p. 334, 1st ed.) says: 'the [52]fundamental principle of the commercial systems, that of leaving full liberty to the merchants, gives them absolute right of property over the goods in which they deal: they have the right to withdraw them altogether, to withhold or even to burn them, as happened more than once with the oriental company of amsterdam, which publicly burnt stores of cinnamon in order to raise the price. what it did with cinnamon it would have done with corn; but for the fear of being stoned by the populace, it would have burnt some corn in order to sell the rest at four times its value. indeed, it actually is of daily occurrence in ports, for provisions of grains to be thrown into the sea because the merchants have allowed them to rot while waiting for a rise. i myself, when i was a clerk, have had to superintend these infamous proceedings, and in one day caused to be thrown into the sea some forty thousand bushels of rice, which might have been sold at a fair profit had the withholder been less greedy of gain. it is society that bears the cost of this waste, which takes place daily under shelter of the philosophical maxim of full liberty for the merchants.'
"6thly. commerce robs society, moreover, by all the loss, damage, and waste that follows from the extreme scattering of products in millions of shops, and by the multiplication and complication of carriage.
[53]"7thly. it robs society by shameless and unlimited usury—usury absolutely appalling. the trader carries on operations with fictitious capital, much higher in amount than his real capital. a trader with a capital of twelve hundred pounds will carry on operations, by means of bills and credit, on a scale of four, eight, or twelve thousand pounds. thus he draws from capital which he does not possess, usurious interest, out of all proportion with the capital he actually owns.
"8thly. it robs society by innumerable bankruptcies, for the daily accidents of our commercial system, political events, and any kind of disturbance, must usher in a day when the trader, having incurred obligations beyond his means, is no longer able to meet them; his failure, whether fraudulent or not, must be a severe blow to his creditors. the bankruptcy of some entails that of others, so that bankruptcies follow one upon another, causing widespread ruin. and it is always the producer and the consumer who suffer; for commerce, considered as a whole, does not produce wealth, and invests very little in proportion to the wealth which passes through its hands. how many are the manufactures crushed by these blows! how many fertile sources of wealth dried up by these devices, with all their disastrous consequences!
"the producer furnishes the goods, the consumer the money. trade furnishes credit, [54]founded on little or no actual capital, and the different members of the commercial body are in no way responsible for one another. this, in a few words, is the whole theory of the thing.
"9thly. commerce robs society by the independence and irresponsibility which permits it to buy at the epochs when the producers are forced to sell and compete with one another, in order to procure money for their rent and necessary expenses of production. when the markets are overstocked and goods cheap, trade purchases. then it creates a rise, and by this simple man?uvre despoils both producer and consumer.
"10thly. it robs society by a considerable drawing off of capital, which will return to productive industry when commerce plays its proper subordinate part, and is only an agency carrying on transactions between the producers (more or less distant) and the great centres of consumption—the communistic societies. thus the capital engaged in the speculations of commerce (which, small as it is, compared to the immense wealth which passes through its hands, consists nevertheless of sums enormous in themselves), would return to stimulate production if commerce was deprived of the intermediate property in goods, and their distribution became a matter of administrative organization. stock-jobbing is the most odious form of this vice of commerce.
[55]"11thly. it robs society by the monopolising or buying up of raw materials. 'for' (says fourier, th. des quat. mouv., p. 359, 1st ed.), 'the rise in price on articles that are bought up, is borne ultimately by the consumer, although in the first place by the manufacturers, who, being obliged to keep up their establishments, must make pecuniary sacrifices, and manufacture at small profits in the hope of better days; and it is often long before they can repay themselves the rise in prices which the monopoliser has compelled them to support in the first instance...."
"in short, all these vices, besides many others which i omit, are multiplied by the extreme complication of mercantile affairs; for products do not pass once only through the greedy clutches of commerce; there are some which pass and repass twenty or thirty times before reaching the consumer. in the first place, the raw material passes through the grasp of commerce before reaching the manufacturer who first works it up; then it returns to commerce to be sent out again to be worked up in a second form; and so on until it receives its final shape. then it passes into the hands of merchants, who sell to the wholesale dealers, and these to the great retail dealers of towns, and these again to the little dealers and to the country shops; and each time that it changes hands, it leaves something behind it.
[56]"... one of my friends who was lately exploring the jura, where much working in metal is done, had occasion to enter the house of a peasant who was a manufacturer of shovels. he asked the price. 'let us come to an understanding,' answered the poor laborer, not an economist at all, but a man of common sense; 'i sell them for 8d. to the trade, which retails them at 1s. 8d. in the towns. if you could find a means of opening a direct communication between the workman and the consumer, you might have them for 1s. 2d., and we should each gain 6d. by the transaction.'"[5]
to a similar effect owen, in the book of the new moral world, part 2, chap. iii.
"the principle now in practice is to induce a large portion of society to devote their lives to distribute wealth upon a large, a medium, and a small scale, and to have it conveyed from place to place in larger or smaller quantities, to meet the means and wants of various divisions of society and individuals, as they are now situated in cities, towns, villages, and country places. this principle of distribution makes a class in society whose business is to buy from some parties and to sell to others. by this proceeding they are placed under circumstances which [57]induce them to endeavor to buy at what appears at the time a low price in the market, and to sell again at the greatest permanent profit which they can obtain. their real object being to get as much profit as gain between the seller to, and the buyer from them, as can be effected in their transactions.
"there are innumerable errors in principle and evils in practice which necessarily proceed from this mode of distributing the wealth of society.
"1st. a general class of distributers is formed, whose interest is separated from, and apparently opposed to, that of the individual from whom they buy and to whom they sell.
"2nd. three classes of distributers are made, the small, the medium, and the large buyers and sellers; or the retailers, the wholesale dealers, and the extensive merchants.
"3rd. three classes of buyers thus created constitute the small, the medium, and the large purchasers.
"by this arrangement into various classes of buyers and sellers, the parties are easily trained to learn that they have separate and opposing interests, and different ranks and stations in society. an inequality of feeling and condition is thus created and maintained, with all the servility and pride which these unequal arrangements are sure to produce. the parties are regularly trained in a general system of deception, [58]in order that they may be the more successful in buying cheap and selling dear.
"the smaller sellers acquire habits of injurious idleness, waiting often for hours for customers. and this evil is experienced to a considerable extent even amongst the class of wholesale dealers.
"there are, also, by this arrangement, many more establishments for selling than are necessary in the villages, towns, and cities; and a very large capital is thus wasted without benefit to society. and from their number opposed to each other all over the country to obtain customers, they endeavor to undersell each other, and are therefore continually endeavoring to injure the producer by the establishment of what are called cheap shops and warehouses; and to support their character the master or his servants must be continually on the watch to buy bargains, that is, to procure wealth for less than the cost of its production.
"the distributers, small, medium, and large, have all to be supported by the producers, and the greater the number of the former compared with the latter, the greater will be the burden which the producer has to sustain; for as the number of distributers increases, the accumulation of wealth must decrease, and more must be required from the producer.
"the distributers of wealth, under the present [59]system, are a dead weight upon the producers, and are most active demoralisers of society. their dependent condition, at the commencement of their task, teaches or induces them to be servile to their customers, and to continue to be so as long as they are accumulating wealth by their cheap buying and dear selling. but when they have secured sufficient to be what they imagine to be an independence—to live without business—they are too often filled with a most ignorant pride, and become insolent to their dependents.
"the arrangement is altogether a most improvident one for society, whose interest it is to produce the greatest amount of wealth of the best qualities; while the existing system of distribution is not only to withdraw great numbers from producing to become distributers, but to add to the cost of the consumer all the expense of a most wasteful and extravagant distribution; the distribution costing to the consumer many times the price of the original cost of the wealth purchased.
"then, by the position in which the seller is placed by his created desire for gain on the one hand, and the competition he meets with from opponents selling similar productions on the other, he is strongly tempted to deteriorate the articles which he has for sale; and when these are provisions, either of home production or of foreign importation, the effects upon the health, [60]and consequent comfort and happiness of the consumers, are often most injurious, and productive of much premature death, especially among the working classes, who, in this respect, are perhaps made to be the greatest sufferers, by purchasing the inferior or low-priced articles.
"the expense of thus distributing wealth in great britain and ireland, including transit from place to place, and all the agents directly and indirectly engaged in this department, is, perhaps, little short of one hundred millions annually, without taking into consideration the deterioration of the quality of many of the articles constituting this wealth, by carriage, and by being divided into small quantities, and kept in improper stores and places, in which the atmosphere is unfavorable to the keeping of such articles in a tolerably good, and much less in the best, condition for use."
in further illustration of the contrariety of interests between person and person, class and class, which pervades the present constitution of society, m. considérant adds:—
"if the wine-growers wish for free trade, this freedom ruins the producer of corn, the manufacturers of iron, of cloth, of cotton, and—we are compelled to add—the smuggler and the customs' [61]officer. if it is the interest of the consumer that machines should be invented which lower prices by rendering production less costly, these same machines throw out of work thousands of workmen who do not know how to, and cannot at once, find other work. here, then, again is one of the innumerable vicious circles of civilisation ... for there are a thousand facts which prove cumulatively that in our existing social system the introduction of any good brings always along with it some evil.
"in short, if we go lower down and come to vulgar details, we find that it is the interest of the tailor, the shoemaker, and the hatter that coats, shoes, and hats should be soon worn out; that the glazier profits by the hail-storms which break windows; that the mason and the architect profit by fires; the lawyer is enriched by law-suits; the doctor by disease; the wine-seller by drunkenness; the prostitute by debauchery. and what a disaster it would be for the judges, the police, and the jailers, as well as for the barristers and the solicitors, and all the lawyers' clerks, if crimes, offences, and law-suits were all at once to come to an end!"[6]
the following is one of the cardinal points of this school:—
"add to all this, that civilisation, which sows dissension and[62] war on every side; which employs a great part of its powers in unproductive labor or even in destruction; which furthermore diminishes the public wealth by the unnecessary friction and discord it introduces into industry; add to all this, i say, that this same social system has for its special characteristic to produce a repugnance for work—a disgust for labor.
"everywhere you hear the laborer, the artisan, the clerk complain of his position and his occupation, while they long for the time when they can retire from work imposed upon them by necessity. to be repugnant, to have for its motive and pivot nothing but the fear of starvation, is the great, the fatal, characteristic of civilised labor. the civilised workman is condemned to penal servitude. so long as productive labor is so organized that instead of being associated with pleasure it is associated with pain, weariness and dislike, it will always happen that all will avoid it who are able. with few exceptions, those only will consent to work who are compelled to it by want. hence the most numerous classes, the artificers of social wealth, the active and direct creators of all comfort and luxury, will always be condemned to touch closely on poverty and hunger; they will always be the slaves to ignorance and degradation; they will continue to be always that huge herd of [63]mere beasts of burden whom we see ill-grown, decimated by disease, bowed down in the great workshop of society over the plow or over the counter, that they may prepare the delicate food, and the sumptuous enjoyments of the upper and idle classes.
"so long as no method of attractive labor has been devised, it will continue to be true that 'there must be many poor in order that there may be a few rich;' a mean and hateful saying, which we hear every day quoted as an eternal truth from the mouths of people who call themselves christians or philosophers. it is very easy to understand that oppression, trickery, and especially poverty, are the permanent and fatal appanage of every state of society characterized by the dislike of work, for, in this case, there is nothing but poverty that will force men to labor. and the proof of this is, that if every one of all the workers were to become suddenly rich, nineteen-twentieths of all the work now done would be abandoned."[7]
in the opinion of the fourierists, the tendency of the present order of society is to a concentration of wealth in the hands of a comparatively few immensely rich individuals or companies, and the reduction of all the rest of the [64]community into a complete dependence on them. this was termed by fourier la jeodalite industrielle.
"this feudalism," says m. considérant, "would be constituted as soon as the largest part of the industrial and territorial property of the nation belongs to a minority which absorbs all its revenues, while the great majority, chained to the work-bench or laboring on the soil, must be content to gnaw the pittance which is cast to them."[8]
this disastrous result is to be brought about partly by the mere progress of competition, as sketched in our previous extract by m. louis blanc; assisted by the progress of national debts, which m. considérant regards as mortgages of the whole land and capital of the country, of which "les capitalistes prêteurs" become, in a greater and greater measure, co-proprietors, receiving without labor or risk an increasing portion of the revenues.