What is Property? Proudhon 1840
The last resort of proprietors, — the overwhelming argument whose invincible potency reassures them, — is that, in their opinion, equality of conditions is impossible. “Equality of conditions is a chimera,” they cry with a knowing air; “distribute wealth equally to-day — to-morrow this equality will have vanished.”
To this hackneyed objection, which they repeat everywhere with the most marvellous assurance, they never fail to add the following comment, as a sort of Glory be to the Father: “If all men were equal, nobody would work.” This anthem is sung with variations.
“If all were masters, nobody would obey.”
“If nobody were rich, who would employ the poor?”
And, “If nobody were poor, who would labor for the rich?”
But let us have done with invective — we have better arguments at our command.
If I show that property itself is impossible — that it is property which is a contradiction, a chimera, a utopia; and if I show it no longer by metaphysics and jurisprudence, but by figures, equations, and calculations, — imagine the fright of the astounded proprietor! And you, reader; what do you think of the retort?
Numbers govern the world — mundum regunt numeri. This proverb applies as aptly to the moral and political, as to the sidereal and molecular, world. The elements of justice are identical with those of algebra; legislation and government are simply the arts of classifying and balancing powers; all jurisprudence falls within the rules of arithmetic. This chapter and the next will serve to lay the foundations of this extraordinary doctrine. Then will be unfolded to the reader’s vision an immense and novel career; then shall we commence to see in numerical relations the synthetic unity of philosophy and the sciences; and, filled with admiration and enthusiasm for this profound and majestic simplicity of Nature, we shall shout with the apostle: “Yes, the Eternal has made all things by number, weight, and measure!” We shall understand not only that equality of conditions is possible, but that all else is impossible; that this seeming impossibility which we charge upon it arises from the fact that we always think of it in connection either with the proprietary or the communistic régime, — political systems equally irreconcilable with human nature. We shall see finally that equality is constantly being realized without our knowledge, even at the very moment when we are pronouncing it incapable of realization; that the time draws near when, without any effort or even wish of ours, we shall have it universally established; that with it, in it, and by it, the natural and true political order must make itself manifest.
It has been said, in speaking of the blindness and obstinacy of the passions, that, if man had any thing to gain by denying the truths of arithmetic, he would find some means of unsettling their certainty: here is an opportunity to try this curious experiment. I attack property, no longer with its own maxims, but with arithmetic. Let the proprietors prepare to verify my figures; for, if unfortunately for them the figures prove accurate, the proprietors are lost.
In proving the impossibility of property, I complete the proof of its injustice. In fact, —
That which is just must be useful;
That which is useful must be true;
That which is true must be possible;
Therefore, every thing which is impossible is untrue, useless, unjust. Then, — a priori, — we may judge of the justice of any thing by its possibility; so that if the thing were absolutely impossible, it would be absolutely unjust.
AXIOM. — Property is the Right of Increase claimed by the Proprietor over any thing which he has stamped as his own.
This proposition is purely an axiom, because, —
1. It is not a definition, since it does not express all that is included in the right of property — the right of sale, of exchange, of gift; the right to transform, to alter, to consume, to destroy, to use and abuse, &c. All these rights are so many different powers of property, which we may consider separately; but which we disregard here, that we may devote all our attention to this single one, — the right of increase.
2. It is universally admitted. No one can deny it without denying the facts, without being instantly belied by universal custom.
3. It is self-evident, since property is always accompanied (either actually or potentially) by the fact which this axiom expresses; and through this fact, mainly, property manifests, establishes, and asserts itself.
4. Finally, its negation involves a contradiction. The right of increase is really an inherent right, so essential a part of property, that, in its absence, property is null and void.
Observations. — Increase receives different names according to the thing by which it is yielded: if by land, farm-rent; if by houses and furniture, rent; if by life-investments, revenue; if by money, interest; if by exchange, advantage gain, profit (three things which must not be confounded with the wages or legitimate price of labor).
Increase — a sort of royal prerogative, of tangible and consumable homage — is due to the proprietor on account of his nominal and metaphysical occupancy. His seal is set upon the thing; that is enough to prevent any one else from occupying it without his permission.
This permission to use his things the proprietor may, if he chooses, freely grant. Commonly he sells it. This sale is really a stellionate and an extortion; but by the legal fiction of the right of property, this same sale, severely punished, we know not why, in other cases, is a source of profit and value to the proprietor.
The amount demanded by the proprietor, in payment for this permission, is expressed in monetary terms by the dividend which the supposed product yields in nature. So that, by the right of increase, the proprietor reaps and does not plough; gleans and does not till; consumes and does not produce; enjoys and does not labor. Very different from the idols of the Psalmist are the gods of property: the former had hands and felt not; the latter, on the contrary, manus habent et palpabunt.
The right of increase is conferred in a very mysterious and supernatural manner. The inauguration of a proprietor is accompanied by the awful ceremonies of an ancient initiation. First, comes the consecration of the article; a consecration which makes known to all that they must offer up a suitable sacrifice to the proprietor, whenever they wish, by his permission obtained and signed, to use his article.
Second, comes the anathema, which prohibits — except on the conditions aforesaid — all persons from touching the article, even in the proprietor’s absence; and pronounces every violator of property sacrilegious, infamous, amenable to the secular power, and deserving of being handed over to it.
Finally, the dedication, which enables the proprietor or patron saint — the god chosen to watch over the article — to inhabit it mentally, like a divinity in his sanctuary. By means of this dedication, the substance of the article — so to speak — becomes converted into the person of the proprietor, who is regarded as ever present in its form.
This is exactly the doctrine of the writers on jurisprudence. “Property,” says Toullier, “is a moral quality inherent in a thing; an actual bond which fastens it to the proprietor, and which cannot be broken save by his act.” Locke humbly doubted whether God could make matter intelligent. Toullier asserts that the proprietor renders it moral. How much does he lack of being a God? These are by no means exaggerations.
Property is the right of increase; that is, the power to produce without labor. Now, to produce without labor is to make something from nothing; in short, to create. Surely it is no more difficult to do this than to moralize matter. The jurists are right, then, in applying to proprietors this passage from the Scriptures, — Ego dixi: Dii estis et filii Excelsi omnes, — “I have said, Ye are gods; and all of you are children of the Most High.”
Property is the right of increase. To us this axiom shall be like the name of the beast in the Apocalypse, — a name in which is hidden the complete explanation of the whole mystery of this beast. It was known that he who should solve the mystery of this name would obtain a knowledge of the whole prophecy, and would succeed in mastering the beast. Well! by the most careful interpretation of our axiom we shall kill the sphinx of property. Starting from this eminently characteristic fact — the right of increase — we shall pursue the old serpent through his coils; we shall count the murderous entwinings of this frightful tćnia, whose head, with its thousand suckers, is always hidden from the sword of its most violent enemies, though abandoning to them immense fragments of its body. It requires something more than courage to subdue this monster. It was written that it should not die until a proletaire, armed with a magic wand, had fought with it.
COROLLARIES. — 1. The amount of increase is proportional to the thing increased. Whatever be the rate of interest, — whether it rise to three, five, or ten per cent., or fall to one-half, one-fourth, one-tenth, — it does not matter; the law of increase remains the same. The law is as follows: —
All capital — the cash value of which can be estimated — may be considered as a term in an arithmetical series which progresses in the ratio of one hundred, and the revenue yielded by this capital as the corresponding term of another arithmetical series which progresses in a ratio equal to the rate of interest. Thus, a capital of five hundred francs being the fifth term of the arithmetical progression whose ratio is one hundred, its revenue at three per cent. will be indicated by the fifth term of the arithmetical progression whose ratio is three: — 100 . 200 . 300 . 400 . 500. 3 . 6 . 9 . 12 . 15.
An acquaintance with this sort of logarithms — tables of which, calculated to a very high degree, are possessed by proprietors — will give us the key to the most puzzling problems, and cause us to experience a series of surprises.
By this logarithmic theory of the right of increase, a piece of property, together with its income, may be defined as a number whose logarithm is equal to the sum of its units divided by one hundred, and multiplied by the rate of interest. For instance; a house valued at one hundred thousand francs, and leased at five per cent., yields a revenue of five thousand francs, according to the formula 100,000 x 5 / 100 = five thousand. vice versa, a piece of land which yields, at two and a half per cent., a revenue of three thousand francs is worth one hundred and twenty thousand francs, according to this other formula; 3,000 x 100 / 2 1/2 = one hundred and twenty thousand.
In the first case, the ratio of the progression which marks the increase of interest is five; in the second, it is two and a half.
Observation. — The forms of increase known as farm-rent, income, and interest are paid annually; rent is paid by the week, the month, or the year; profits and gains are paid at the time of exchange. Thus, the amount of increase is proportional both to the thing increased, and the time during which it increases; in other words, usury grows like a cancer — foenus serpit sicut cancer.
2. The increase paid to the proprietor by the occupant is a dead loss to the latter. For if the proprietor owed, in exchange for the increase which he receives, some thing more than the permission which he grants, his right of property would not be perfect — he would not possess jure optimo, jure perfecto; that is, he would not be in reality a proprietor. Then, all which passes from the hands of the occupant into those of the proprietor in the name of increase, and as the price of the permission to occupy, is a permanent gain for the latter, and a dead loss and annihilation for the former; to whom none of it will return, save in the forms of gift, alms, wages paid for his services, or the price of merchandise which he has delivered. In a word, increase perishes so far as the borrower is concerned; or to use the more energetic Latin phrase, — res perit solventi.
3. The right of increase oppresses the proprietor as well as the stranger. The master of a thing, as its proprietor, levies a tax for the use of his property upon himself as its possessor, equal to that which he would receive from a third party; so that capital bears interest in the hands of the capitalist, as well as in those of the borrower and the commandité. If, indeed, rather than accept a rent of five hundred francs for my apartment, I prefer to occupy and enjoy it, it is clear that I shall become my own debtor for a rent equal to that which I deny myself. This principle is universally practised in business, and is regarded as an axiom by the economists. Manufacturers, also, who have the advantage of being proprietors of their floating capital, although they owe no interest to any one, in calculating their profits subtract from them, not only their running expenses and the wages of their employees, but also the interest on their capital. For the same reason, money-lenders retain in their own possession as little money as possible; for, since all capital necessarily bears interest, if this interest is supplied by no one, it comes out of the capital, which is to that extent diminished. Thus, by the right of increase, capital eats itself up. This is, doubtless, the idea that Papinius intended to convey in the phrase, as elegant as it is forcible — Foenus mordet solidam. I beg pardon for using Latin so frequently in discussing this subject; it is an homage which I pay to the most usurious nation that ever existed.
The discussion of this proposition covers the same ground as that of the origin of farm-rent, which is so much debated by the economists. When I read the writings of the greater part of these men, I cannot avoid a feeling of contempt mingled with anger, in view of this mass of nonsense, in which the detestable vies with the absurd. It would be a repetition of the story of the elephant in the moon, were it not for the atrocity of the consequences. To seek a rational and legitimate origin of that which is, and ever must be, only robbery, extortion, and plunder — that must be the height of the proprietor’s folly; the last degree of bedevilment into which minds, otherwise judicious, can be thrown by the perversity of selfishness.
“A farmer,” says Say, “is a wheat manufacturer who, among other tools which serve him in modifying the material from which he makes the wheat, employs one large tool, which we call a field. If he is not the proprietor of the field, if he is only a tenant, he pays the proprietor for the productive service of this tool. The tenant is reimbursed by the purchaser, the latter by another, until the product reaches the consumer; who redeems the first payment, plus all the others, by means of which the product has at last come into his hands.”
Let us lay aside the subsequent payments by which the product reaches the consumer, and, for the present, pay attention only to the first one of all, — the rent paid to the proprietor by the tenant. On what ground, we ask, is the proprietor entitled to this rent?
According to Ricardo, MacCulloch, and Mill, farm-rent, properly speaking, is simply the excess of the product of the most fertile land over that of lands of an inferior quality; so that farm-rent is not demanded for the former until the increase of population renders necessary the cultivation of the latter.
It is difficult to see any sense in this. How can a right to the land be based upon a difference in the quality of the land? How can varieties of soil engender a principle of legislation and politics? This reasoning is either so subtle, or so stupid, that the more I think of it, the more bewildered I become. Suppose two pieces of land of equal area; the one, A, capable of supporting ten thousand inhabitants; the other, B, capable of supporting nine thousand only: when, owing to an increase in their number, the inhabitants of A shall be forced to cultivate B, the landed proprietors of A will exact from their tenants in A a rent proportional to the difference between ten and nine. So say, I think, Ricardo, Macculloch, and Mill. But if A supports as many inhabitants as it can contain, — that is, if the inhabitants of A, by our hypothesis, have only just enough land to keep them alive, — how can they pay farm-rent?
If they had gone no farther than to say that the difference in land has occasioned farm-rent, instead of caused it, this observation would have taught us a valuable lesson; namely, that farm-rent grew out of a desire for equality. Indeed, if all men have an equal right to the possession of good land, no one can be forced to cultivate bad land without indemnification. Farm-rent — according to Ricardo, Macculloch, and Mill — would then have been a compensation for loss and hardship. This system of practical equality is a bad one, no doubt; but it sprang from good intentions. What argument can Ricardo, Maculloch [sic], and Mill develop therefrom in favor of property? Their theory turns against themselves, and strangles them.
Malthus thinks that farm-rent has its source in the power possessed by land of producing more than is necessary to supply the wants of the men who cultivate it. I would ask Malthus why successful labor should entitle the idle to a portion of the products?
But the worthy Malthus is mistaken in regard to the fact. Yes; land has the power of producing more than is needed by those who cultivate it, if by cultivators is meant tenants only. The tailor also makes more clothes than he wears, and the cabinet-maker more furniture than he uses. But, since the various professions imply and sustain one another, not only the farmer, but the followers of all arts and trades — even to the doctor and the school-teacher — are, and ought to be, regarded as cultivators of the land. Malthus bases farm-rent upon the principle of commerce. Now, the fundamental law of commerce being equivalence of the products exchanged, any thing which destroys this equivalence violates the law. There is an error in the estimate which needs to be corrected.
Buchanan — a commentator on Smith — regarded farm-rent as the result of a monopoly, and maintained that labor alone is productive. Consequently, he thought that, without this monopoly, products would rise in price; and he found no basis for farm-rent save in the civil law. This opinion is a corollary of that which makes the civil law the basis of property. But why has the civil law — which ought to be the written expression of justice — authorized this monopoly? Whoever says monopoly, necessarily excludes justice. Now, to say that farm-rent is a monopoly sanctioned by the law, is to say that injustice is based on justice, — a contradiction in terms.
Say answers Buchanan, that the proprietor is not a monopolist, because a monopolist “is one who does not increase the utility of the merchandise which passes through his hands.”
How much does the proprietor increase the utility of his tenant’s products? Has he ploughed, sowed, reaped, mowed, winnowed, weeded? These are the processes by which the tenant and his employees increase the utility of the material which they consume for the purpose of reproduction.
“The landed proprietor increases the utility of products by means of his implement, the land. This implement receives in one state, and returns in another the materials of which wheat is composed. The action of the land is a chemical process, which so modifies the material that it multiplies it by destroying it. The soil is then a producer of utility; and when it [the soil?] asks its pay in the form of profit, or farm rent, for its proprietor, it at the same time gives something to the consumer in exchange for the amount which the consumer pays it. It gives him a produced utility; and it is the production of this utility which warrants us in calling land productive, as well as labor.”
Let us clear up this matter.
The blacksmith who manufactures for the farmer implements of husbandry, the wheelwright who makes him a cart, the mason who builds his barn, the carpenter, the basket-maker, &c., — all of whom contribute to agricultural production by the tools which they provide, — are producers of utility; consequently, they are entitled to a part of the products.
“Undoubtedly,” says Say; “but the land also is an implement whose service must be paid for, then... .”
I admit that the land is an implement; but who made it? Did the proprietor? Did he — by the efficacious virtue of the right of property, by this moral quality infused into the soil — endow it with vigor and fertility? Exactly there lies the monopoly of the proprietor; in the fact that, though he did not make the implement, he asks pay for its use. When the Creator shall present himself and claim farm-rent, we will consider the matter with him; or even when the proprietor — his pretended representative — shall exhibit his power-of-attorney.
“The proprietor’s service,” adds Say, “is easy, I admit.”
It is a frank confession.
“But we cannot disregard it. Without property, one farmer would contend with another for the possession of a field without a proprietor, and the field would remain uncultivated... .”
Then the proprietor’s business is to reconcile farmers by robbing them. O logic! O justice! O the marvellous wisdom of economists! The proprietor, if they are right, is like Perrin-Dandin who, when summoned by two travellers to settle a dispute about an oyster, opened it, gobbled it, and said to them: —
“The Court awards you each a shell.”
Could any thing worse be said of property?
Will Say tell us why the same farmers, who, if there were no proprietors, would contend with each other for possession of the soil, do not contend to-day with the proprietors for this possession? Obviously, because they think them legitimate possessors, and because their respect for even an imaginary right exceeds their avarice. I proved, in Chapter II., that possession is sufficient, without property, to maintain social order. Would it be more difficult, then, to reconcile possessors without masters than tenants controlled by proprietors? Would laboring men, who respect — much to their own detriment — the pretended rights of the idler, violate the natural rights of the producer and the manufacturer? What! if the husbandman forfeited his right to the land as soon as he ceased to occupy it, would he become more covetous? And would the impossibility of demanding increase, of taxing another’s labor, be a source of quarrels and law-suits? The economists use singular logic. But we are not yet through. Admit that the proprietor is the legitimate master of the land.
“The land is an instrument of production,” they say. That is true. But when, changing the noun into an adjective, they alter the phrase, thus, “The land is a productive instrument,” they make a wicked blunder.
According to Quesnay and the early economists, all production comes from the land. Smith, Ricardo, and de Tracy, on the contrary, say that labor is the sole agent of production. Say, and most of his successors, teach that both land and labor and capital are productive. The latter constitute the eclectic school of political economy. The truth is, that neither land nor labor nor capital is productive. Production results from the co-operation of these three equally necessary elements, which, taken separately, are equally sterile.
Political economy, indeed, treats of the production, distribution, and consumption of wealth or values. But of what values? Of the values produced by human industry; that is, of the changes made in matter by man, that he may appropriate it to his own use, and not at all of Nature’s spontaneous productions. Man’s labor consists in a simple laying on of hands. When he has taken that trouble, he has produced a value. Until then, the salt of the sea, the water of the springs, the grass of the fields, and the trees of the forests are to him as if they were not. The sea, without the fisherman and his line, supplies no fish. The forest, without the wood-cutter and his axe, furnishes neither fuel nor timber.
The meadow, without the mower, yields neither hay nor aftermath. Nature is a vast mass of material to be cultivated and converted into products; but Nature produces nothing for herself: in the economical sense, her products, in their relation to man, are not yet products.
Capital, tools, and machinery are likewise unproductive. The hammer and the anvil, without the blacksmith and the iron, do not forge. The mill, without the miller and the grain, does not grind, &c. Bring tools and raw material together; place a plough and some seed on fertile soil; enter a smithy, light the fire, and shut up the shop, — you will produce nothing. The following remark was made by an economist who possessed more good sense than most of his fellows: “Say credits capital with an active part unwarranted by its nature; left to itself, it is an idle tool.” (J. Droz: Political Economy.)
Finally, labor and capital together, when unfortunately combined, produce nothing. Plough a sandy desert, beat the water of the rivers, pass type through a sieve, — you will get neither wheat, nor fish, nor books. Your trouble will be as fruitless as was the immense labor of the army of Xerxes; who, as Herodotus says, with his three million soldiers, scourged the Hellespont for twenty-four hours, as a punishment for having broken and scattered the pontoon bridge which the great king had thrown across it.
Tools and capital, land and labor, considered individually and abstractly, are not, literally speaking, productive. The proprietor who asks to be rewarded for the use of a tool, or the productive power of his land, takes for granted, then, that which is radically false; namely, that capital produces by its own effort, — and, in taking pay for this imaginary product, he literally receives something for nothing.
Objection. — But if the blacksmith, the wheelwright, all manufacturers in short, have a right to the products in return for the implements which they furnish; and if land is an implement of production, — why does not this implement entitle its proprietor, be his claim real or imaginary, to a portion of the products; as in the case of the manufacturers of ploughs and wagons?
Reply. — Here we touch the heart of the question, the mystery of property; which we must clear up, if we would understand any thing of the strange effects of the right of increase.
He who manufactures or repairs the farmer’s tools receives the price once, either at the time of delivery, or in several payments; and when this price is once paid to the manufacturer, the tools which he has delivered belong to him no more. Never does he claim double payment for the same tool, or the same job of repairs. If he annually shares in the products of the farmer, it is owing to the fact that he annually makes something for the farmer.
The proprietor, on the contrary, does not yield his implement; eternally he is paid for it, eternally he keeps it.
In fact, the rent received by the proprietor is not intended to defray the expense of maintaining and repairing the implement; this expense is charged to the borrower, and does not concern the proprietor except as he is interested in the preservation of the article. If he takes it upon himself to attend to the repairs, he takes care that the money which he expends for this purpose is repaid.
This rent does not represent the product of the implement, since of itself the implement produces nothing; we have just proved this, and we shall prove it more clearly still by its consequences.
Finally, this rent does not represent the participation of the proprietor in the production; since this participation could consist, like that of the blacksmith and the wheelwright, only in the surrender of the whole or a part of his implement, in which case he would cease to be its proprietor, which would involve a contradiction of the idea of property.
Then, between the proprietor and his tenant there is no exchange either of values or services; then, as our axiom says, farm-rent is real increase, — an extortion based solely upon fraud and violence on the one hand, and weakness and ignorance upon the other. Products say the economists, are bought only by products. This maxim is property’s condemnation. The proprietor, producing neither by his own labor nor by his implement, and receiving products in exchange for nothing, is either a parasite or a thief. Then, if property can exist only as a right, property is impossible.
Corollaries. — 1. The republican constitution of 1793, which defined property as “the right to enjoy the fruit of one’s labor,” was grossly mistaken. It should have said, “Property is the right to enjoy and dispose at will of another’s goods, — the fruit of another’s industry and labor.”
2. Every possessor of lands, houses, furniture, machinery, tools, money, &c., who lends a thing for a price exceeding the cost of repairs (the repairs being charged to the lender, and representing products which he exchanges for other products), is guilty of swindling and extortion. In short, all rent received (nominally as damages, but really as payment for a loan) is an act of property, — a robbery.
Historical Comment. — The tax which a victorious nation levies upon a conquered nation is genuine farm-rent. The seigniorial rights abolished by the Revolution of 1789, — tithes, mortmain, statute-labor, &c., — were different forms of the rights of property; and they who under the titles of nobles, seigneurs, prebendaries, &c. enjoyed these rights, were neither more nor less than proprietors. To defend property to-day is to condemn the Revolution.
The preceding proposition was legislative in its nature; this one is economical. It serves to prove that property, which originates in violence, results in waste.
“Production,” says Say, “is exchange on a large scale. To render the exchange productive the value of the whole amount of service must be balanced by the value of the product. If this condition is not complied with, the exchange is unequal; the producer gives more than he receives.”
Now, value being necessarily based upon utility, it follows that every useless product is necessarily valueless, — that it cannot be exchanged; and, consequently, that it cannot be given in payment for productive services.
Then, though production may equal consumption, it never can exceed it; for there is no real production save where there is a production of utility, and there is no utility save where there is a possibility of consumption. Thus, so much of every product as is rendered by excessive abundance inconsumable, becomes useless, valueless, unexchangeable, — consequently, unfit to be given in payment for any thing whatever, and is no longer a product.
Consumption, on the other hand, to be legitimate, — to be true consumption, — must be reproductive of utility; for, if it is unproductive, the products which it destroys are cancelled values — things produced at a pure loss; a state of things which causes products to depreciate in value. Man has the power to destroy, but he consumes only that which he reproduces. Under a right system of economy, there is then an equation between production and consumption.
These points established, let us suppose a community of one thousand families, enclosed in a territory of a given circumference, and deprived of foreign intercourse. Let this community represent the human race, which, scattered over the face of the earth, is really isolated. In fact, the difference between a community and the human race being only a numerical one, the economical results will be absolutely the same in each case.
Suppose, then, that these thousand families, devoting themselves exclusively to wheat-culture, are obliged to pay to one hundred individuals, chosen from the mass, an annual revenue of ten per cent. on their product. It is clear that, in such a case, the right of increase is equivalent to a tax levied in advance upon social production. Of what use is this tax?
It cannot be levied to supply the community with provisions, for between that and farm-rent there is nothing in common; nor to pay for services and products, — for the proprietors, laboring like the others, have labored only for themselves. Finally, this tax is of no use to its recipients who, having harvested wheat enough for their own consumption, and not being able in a society without commerce and manufactures to procure any thing else in exchange for it, thereby lose the advantage of their income.
In such a society, one-tenth of the product being inconsumable, one-tenth of the labor goes unpaid — production costs more than it is worth.
Now, change three hundred of our wheat-producers into artisans of all kinds: one hundred gardeners and wine-growers, sixty shoemakers and tailors, fifty carpenters and blacksmiths, eighty of various professions, and, that nothing may be lacking, seven school-masters, one mayor, one judge, and one priest; each industry furnishes the whole community with its special product. Now, the total production being one thousand, each laborer’s consumption is one; namely, wheat, meat, and grain, 0.7; wine and vegetables, 0.1; shoes and clothing, 0.06; iron-work and furniture, 0.05; sundries, 0.08; instruction, 0.007; administration, 0.002; mass, 0.001, Total 1.
But the community owes a revenue of ten per cent.; and it matters little whether the farmers alone pay it, or all the laborers are responsible for it, — the result is the same. The farmer raises the price of his products in proportion to his share of the debt; the other laborers follow his example. Then, after some fluctuations, equilibrium is established, and all pay nearly the same amount of the revenue. It would be a grave error to assume that in a nation none but farmers pay farm-rent — the whole nation pays it.
I say, then, that by this tax of ten per cent. each laborer’s consumption is reduced as follows: wheat, 0.63; wine and vegetables, 0.09; clothing and shoes, 0.054; furniture and iron-work, 0.045; other products, 0.072; schooling, 0.0063; administration, 0.0018; mass, 0.0009. Total 0.9.
The laborer has produced 1; he consumes only 0.9. He loses, then, one-tenth of the price of his labor; his production still costs more than it is worth. On the other hand, the tenth received by the proprietors is no less a waste; for, being laborers themselves, they, like the others, possess in the nine-tenths of their product the wherewithal to live: they want for nothing. Why should they wish their proportion of bread, wine, meat, clothes, shelter, &c., to be doubled, if they can neither consume nor exchange them? Then farm-rent, with them as with the rest of the laborers, is a waste, and perishes in their hands. Extend the hypothesis, increase the number and variety of the products, you still have the same result.
Hitherto, we have considered the proprietor as taking part in the production, not only (as Say says) by the use of his instrument, but in an effective manner and by the labor of his hands. Now, it is easy to see that, under such circumstances, property will never exist. What happens?
The proprietor — an essentially libidinous animal, without virtue or shame — is not satisfied with an orderly and disciplined life. He loves property, because it enables him to do at leisure what he pleases and when he pleases. Having obtained the means of life, he gives himself up to trivialities and indolence; he enjoys, he fritters away his time, he goes in quest of curiosities and novel sensations. Property — to enjoy itself — has to abandon ordinary life, and busy itself in luxurious occupations and unclean enjoyments.
Instead of giving up a farm-rent, which is perishing in their hands, and thus lightening the labor of the community, our hundred proprietors prefer to rest. In consequence of this withdrawal, — the absolute production being diminished by one hundred, while the consumption remains the same, — production and consumption seem to balance. But, in the first place, since the proprietors no longer labor, their consumption is, according to economical principles, unproductive; consequently, the previous condition of the community — when the labor of one hundred was rewarded by no products — is superseded by one in which the products of one hundred are consumed without labor. The deficit is always the same, whichever the column of the account in which it is expressed. Either the maxims of political economy are false, or else property, which contradicts them, is impossible.
The economists — regarding all unproductive consumption as an evil, as a robbery of the human race — never fail to exhort proprietors to moderation, labor, and economy; they preach to them the necessity of making themselves useful, of remunerating production for that which they receive from it; they launch the most terrible curses against luxury and laziness. Very beautiful morality, surely; it is a pity that it lacks common sense. The proprietor who labors, or, as the economists say, who makes himself useful, is paid for this labor and utility; is he, therefore, any the less idle as concerns the property which he does not use, and from which he receives an income? His condition, whatever he may do, is an unproductive and felonious one; he cannot cease to waste and destroy without ceasing to be a proprietor.
But this is only the least of the evils which property engenders. Society has to maintain some idle people, whether or no. It will always have the blind, the maimed, the insane, and the idiotic. It can easily support a few sluggards. At this point, the impossibilities thicken and become complicated.
To pay a farm-rent of one hundred at the rate of ten per cent. of the product, the product must be one thousand; that the product may be one thousand, a force of one thousand laborers is needed. It follows, that in granting a furlough, as we have just done, to our one hundred laborer-proprietors, all of whom had an equal right to lead the life of men of income, — we have placed ourselves in a position where we are unable to pay their revenues. In fact, the productive power, which at first was one thousand, being now but nine hundred, the production is also reduced to nine hundred, one-tenth of which is ninety. Either, then, ten proprietors out of the one hundred cannot be paid, — provided the remaining ninety are to get the whole amount of their farm-rent, — or else all must consent to a decrease of ten per cent. For it is not for the laborer, who has been wanting in no particular, who has produced as in the past, to suffer by the withdrawal of the proprietor. The latter must take the consequences of his own idleness. But, then, the proprietor becomes poorer for the very reason that he wishes to enjoy; by exercising his right, he loses it; so that property seems to decrease and vanish in proportion as we try to lay hold of it, — the more we pursue it, the more it eludes our grasp. What sort of a right is that which is governed by numerical relations, and which an arithmetical calculation can destroy?
The laborer-proprietor received, first, as laborer, 0.9 in wages; second, as proprietor, 1 in farm-rent. He said to himself, “My farm-rent is sufficient; I have enough and to spare without my labor.” And thus it is that the income upon which he calculated gets diminished by one-tenth, — he at the same time not even suspecting the cause of this diminution. By taking part in the production, he was himself the creator of this tenth which has vanished; and while he thought to labor only for himself, he unwittingly suffered a loss in exchanging his products, by which he was made to pay to himself one-tenth of his own farm-rent. Like every one else, he produced 1, and received but 0.9
If, instead of nine hundred laborers, there had been but five hundred, the whole amount of farm-rent would have been reduced to fifty; if there had been but one hundred, it would have fallen to ten. We may posit, then, the following axiom as a law of proprietary economy: Increase must diminish as the number of idlers augments.
This first result will lead us to another more surprising still. Its effect is to deliver us at one blow from all the evils of property, without abolishing it, without wronging proprietors, and by a highly conservative process.
We have just proved that, if the farm-rent in a community of one thousand laborers is one hundred, that of nine hundred would be ninety, that of eight hundred, eighty, that of one hundred, ten, &c. So that, in a community where there was but one laborer, the farm-rent would be but 0.1; no matter how great the extent and value of the land appropriated. Therefore, with a given landed capital, production is proportional to labor, not to property.
Guided by this principle, let us try to ascertain the maximum increase of all property whatever.
What is, essentially, a farm-lease? It is a contract by which the proprietor yields to a tenant possession of his land, in consideration of a portion of that which it yields him, the proprietor. If, in consequence of an increase in his household, the tenant becomes ten times as strong as the proprietor, he will produce ten times as much. Would the proprietor in such a case be justified in raising the farm-rent tenfold? His right is not, The more you produce, the more I demand. It is, The more I sacrifice, the more I demand. The increase in the tenant’s household, the number of hands at his disposal, the resources of his industry, — all these serve to increase production, but bear no relation to the proprietor. His claims are to be measured by his own productive capacity, not that of others. Property is the right of increase, not a poll-tax. How could a man, hardly capable of cultivating even a few acres by himself, demand of a community, on the ground of its use of ten thousand acres of his property, ten thousand times as much as he is incapable of producing from one acre? Why should the price of a loan be governed by the skill and strength of the borrower, rather than by the utility sacrificed by the proprietor? We must recognize, then, this second economical law: Increase is measured by a fraction of the proprietors production.
Now, this production, what is it? In other words, What can the lord and master of a piece of land justly claim to have sacrificed in lending it to a tenant?
The productive capacity of a proprietor, like that of any laborer, being one, the product which he sacrifices in surrendering his land is also one. If, then, the rate of increase is ten per cent., the maximum increase is 0.1.
But we have seen that, whenever a proprietor withdraws from production, the amount of products is lessened by 1. Then the increase which accrues to him, being equal to 0.1 while he remains among the laborers, will be equal after his withdrawal, by the law of the decrease of farm-rent, to 0.09. Thus we are led to this final formula: The maximum income of a proprietor is equal to the square root of the product of one laborer (some number being agreed upon to express this product). The diminution which this income suffers, if the proprietor is idle, is equal to a fraction whose numerator is 1, and whose denominator is the number which expresses the product.
Thus the maximum income of an idle proprietor, or of one who labors in his own behalf outside of the community, figured at ten per cent. on an average production of one thousand francs per laborer, would be ninety francs. If, then, there are in France one million proprietors with an income of one thousand francs each, which they consume unproductively, instead of the one thousand millions which are paid them annually, they are entitled in strict justice, and by the most accurate calculation, to ninety millions only.
It is something of a reduction, to take nine hundred and ten millions from the burdens which weigh so heavily upon the laboring class! Nevertheless, the account is not finished, and the laborer is still ignorant of the full extent of his rights.
What is the right of increase when confined within just limits? A recognition of the right of occupancy. But since all have an equal right of occupancy, every man is by the same title a proprietor. Every man has a right to an income equal to a fraction of his product. If, then, the laborer is obliged by the right of property to pay a rent to the proprietor, the proprietor is obliged by the same right to pay the same amount of rent to the laborer; and, since their rights balance each other, the difference between them is zero.
Scholium. — If farm-rent is only a fraction of the supposed product of the proprietor, whatever the amount and value of the property, the same is true in the case of a large number of small and distinct proprietors. For, although one man may use the property of each separately, he cannot use the property of all at the same time.
To sum up. The right of increase, which can exist only within very narrow limits, defined by the laws of production, is annihilated by the right of occupancy. Now, without the right of increase, there is no property. Then property is impossible.
If the right of increase could be subjected to the laws of reason and justice, it would be reduced to an indemnity or reward whose maximum never could exceed, for a single laborer, a certain fraction of that which he is capable of producing. This we have just shown. But why should the right of increase — let us not fear to call it by its right name, the right of robbery — be governed by reason, with which it has nothing in common? The proprietor is not content with the increase allotted him by good sense and the nature of things: he demands ten times, a hundred times, a thousand times, a million times as much. By his own labor, his property would yield him a product equal only to one; and he demands of society, no longer a right proportional to his productive capacity, but a per capita tax. He taxes his fellows in proportion to their strength, their number, and their industry. A son is born to a farmer. “Good!” says the proprietor; “one more chance for increase!” By what process has farm-rent been thus changed into a poll-tax? Why have our jurists and our theologians failed, with all their shrewdness, to check the extension of the right of increase?
The proprietor, having estimated from his own productive capacity the number of laborers which his property will accommodate, divides it into as many portions, and says: “Each one shall yield me revenue.” To increase his income, he has only to divide his property. Instead of reckoning the interest due him on his labor, he reckons it on his capital; and, by this substitution, the same property, which in the hands of its owner is capable of yielding only one, is worth to him ten, a hundred, a thousand, a million. Consequently, he has only to hold himself in readiness to register the names of the laborers who apply to him — his task consists in drafting leases and receipts.
Not satisfied with the lightness of his duties, the proprietor does not intend to bear even the deficit resulting from his idleness; he throws it upon the shoulders of the producer, of whom he always demands the same reward. When the farm-rent of a piece of land is once raised to its highest point, the proprietor never lowers it; high prices, the scarcity of labor, the disadvantages of the season, even pestilence itself, have no effect upon him — why should he suffer from hard times when he does not labor?
Here commences a new series of phenomena.
Say — who reasons with marvellous clearness whenever he assails taxation, but who is blind to the fact that the proprietor, as well as the tax-gatherer, steals from the tenant, and in the same manner — says in his second letter to Malthus: —
“If the collector of taxes and those who employ him consume one-sixth of the products, they thereby compel the producers to feed, clothe, and support themselves on five-sixths of what they produce. They admit this, but say at the same time that it is possible for each one to live on five-sixths of what he produces. I admit that, if they insist upon it; but I ask if they believe that the producer would live as well, in case they demanded of him, instead of one-sixth, two-sixths, or one-third, of their products? No; but he would still live. Then I ask whether he would still live, in case they should rob him of two-thirds, ... then three-quarters? But I hear no reply.”
If the master of the French economists had been less blinded by his proprietary prejudices, he would have seen that farm-rent has precisely the same effect.
Take a family of peasants composed of six persons, — father, mother, and four children, — living in the country, and cultivating a small piece of ground. Let us suppose that by hard labor they manage, as the saying is, to make both ends meet; that, having lodged, warmed, clothed, and fed themselves, they are clear of debt, but have laid up nothing. Taking the years together, they contrive to live. If the year is prosperous, the father drinks a little more wine, the daughters buy themselves a dress, the sons a hat; they eat a little cheese, and, occasionally, some meat. I say that these people are on the road to wreck and ruin.
For, by the third corollary of our axiom, they owe to themselves the interest on their own capital. Estimating this capital at only eight thousand francs at two and a half per cent., there is an annual interest of two hundred francs to be paid. If, then, these two hundred francs, instead of being subtracted from the gross product to be saved and capitalized, are consumed, there is an annual deficit of two hundred francs in the family assets; so that at the end of forty years these good people, without suspecting it, will have eaten up their property and become bankrupt!
This result seems ridiculous — it is a sad reality.
The conscription comes. What is the conscription? An act of property exercised over families by the government without warning — a robbery of men and money. The peasants do not like to part with their sons, — in that I do not think them wrong. It is hard for a young man of twenty to gain any thing by life in the barracks; unless he is depraved, he detests it. You can generally judge of a soldier’s morality by his hatred of his uniform. Unfortunate wretches or worthless scamps, — such is the make-up of the French army. This ought not to be the case, — but so it is. Question a hundred thousand men, and not one will contradict my assertion.
Our peasant, in redeeming his two conscripted sons, expends four thousand francs, which he borrows for that purpose; the interest on this, at five per cent., is two hundred francs; — a sum equal to that referred to above. If, up to this time, the production of the family, constantly balanced by its consumption, has been one thousand two hundred francs, or two hundred francs per persons — in order to pay this interest, either the six laborers must produce as much as seven, or must consume as little as five. Curtail consumption they cannot — how can they curtail necessity? To produce more is impossible; they can work neither harder nor longer. Shall they take a middle course, and consume five and a half while producing six and a half? They would soon find that with the stomach there is no compromise — that beyond a certain degree of abstinence it is impossible to go — that strict necessity can be curtailed but little without injury to the health; and, as for increasing the product, — there comes a storm, a drought, an epizootic, and all the hopes of the farmer are dashed. In short, the rent will not be paid, the interest will accumulate, the farm will be seized, and the possessor ejected.
Thus a family, which lived in prosperity while it abstained from exercising the right of property, falls into misery as soon as the exercise of this right becomes a necessity. Property requires of the husbandman the double power of enlarging his land, and fertilizing it by a simple command. While a man is simply possessor of the land, he finds in it means of subsistence; as soon as he pretends to proprietorship, it suffices him no longer. Being able to produce only that which he consumes, the fruit of his labor is his recompense for his trouble — nothing is left for the instrument.
Required to pay what he cannot produce, — such is the condition of the tenant after the proprietor has retired from social production in order to speculate upon the labor of others by new methods.
Let us now return to our first hypothesis.
The nine hundred laborers, sure that their future production will equal that of the past, are quite surprised, after paying their farm-rent, to find themselves poorer by one-tenth than they were the previous year. In fact, this tenth — which was formerly produced and paid by the proprietor-laborer who then took part in the production, and paid part of the — public expenses — now has not been produced, and has been paid. It must then have been taken from the producer’s consumption. To choke this inexplicable deficit, the laborer borrows, confident of his intention and ability to return, — a confidence which is shaken the following year by a new loan, plus the interest on the first. From whom does he borrow? From the proprietor. The proprietor lends his surplus to the laborer; and this surplus, which he ought to return, becomes — being lent at interest — a new source of profit to him. Then debts increase indefinitely; the proprietor makes advances to the producer who never returns them; and the latter, constantly robbed and constantly borrowing from the robbers, ends in bankruptcy, defrauded of all that he had.
Suppose that the proprietor — who needs his tenant to furnish him with an income — then releases him from his debts. He will thus do a very benevolent deed, which will procure for him a recommendation in the curate’s prayers; while the poor tenant, overwhelmed by this unstinted charity, and taught by his catechism to pray for his benefactors, will promise to redouble his energy, and suffer new hardships that he may discharge his debt to so kind a master.
This time he takes precautionary measures; he raises the price of grains. The manufacturer does the same with his products. The reaction comes, and, after some fluctuation, the farm-rent — which the tenant thought to put upon the manufacturer’s shoulders — becomes nearly balanced. So that, while he is congratulating himself upon his success, he finds himself again impoverished, but to an extent somewhat smaller than before. For the rise having been general, the proprietor suffers with the rest; so that the laborers, instead of being poorer by one-tenth, lose only nine-hundredths. But always it is a debt which necessitates a loan, the payment of interest, economy, and fasting. Fasting for the nine-hundredths which ought not to be paid, and are paid; fasting for the redemption of debts; fasting to pay the interest on them. Let the crop fail, and the fasting becomes starvation. They say, “It is necessary to work more.” That means, obviously, that it is necessary to produce more. By what conditions is production effected? By the combined action of labor, capital, and land. As for the labor, the tenant undertakes to furnish it; but capital is formed only by economy. Now, if the tenant could accumulate any thing, he would pay his debts. But granting that he has plenty of capital, of what use would it be to him if the extent of the land which he cultivates always remained the same? He needs to enlarge his farm.
Will it be said, finally, that he must work harder and to better advantage? But, in our estimation of farm-rent, we have assumed the highest possible average of production. Were it not the highest, the proprietor would increase the farm-rent. Is not this the way in which the large landed proprietors have gradually raised their rents, as fast as they have ascertained by the increase in population and the development of industry how much society can produce from their property? The proprietor is a foreigner to society; but, like the vulture, his eyes fixed upon his prey, he holds himself ready to pounce upon and devour it.
The facts to which we have called attention, in a community of one thousand persons, are reproduced on a large scale in every nation and wherever human beings live, but with infinite variations and in innumerable forms, which it is no part of my intention to describe.
In fine, property — after having robbed the laborer by usury — murders him slowly by starvation. Now, without robbery and murder, property cannot exist; with robbery and murder, it soon dies for want of support. Therefore it is impossible.
When the ass is too heavily loaded, he lies down; man always moves on. Upon this indomitable courage, the proprietor — well knowing that it exists — bases his hopes of speculation. The free laborer produces ten; for me, thinks the proprietor, he will produce twelve.
Indeed, — before consenting to the confiscation of his fields, before bidding farewell to the paternal roof, — the peasant, whose story we have just told, makes a desperate effort; he leases new land; he will sow one-third more; and, taking half of this new product for himself, he will harvest an additional sixth, and thereby pay his rent. What an evil! To add one-sixth to his production, the farmer must add, not one-sixth, but two-sixths to his labor. At such a price, he pays a farm-rent which in God’s eyes he does not owe.
The tenant’s example is followed by the manufacturer. The former tills more land, and dispossesses his neighbors; the latter lowers the price of his merchandise, and endeavors to monopolize its manufacture and sale, and to crush out his competitors. To satisfy property, the laborer must first produce beyond his needs. Then, he must produce beyond his strength; for, by the withdrawal of laborers who become proprietors, the one always follows from the other. But to produce beyond his strength and needs, he must invade the production of another, and consequently diminish the number of producers. Thus the proprietor — after having lessened production by stepping outside — lessens it still further by encouraging the monopoly of labor. Let us calculate it.
The laborer’s deficit, after paying his rent, being, as we have seen, one-tenth, he tries to increase his production by this amount. He sees no way of accomplishing this save by increasing his labor: this also he does. The discontent of the proprietors who have not received the full amount of their rent; the advantageous offers and promises made them by other farmers, whom they suppose more diligent, more industrious, and more reliable; the secret plots and intrigues, — all these give rise to a movement for the re-division of labor, and the elimination of a certain number of producers. Out of nine hundred, ninety will be ejected, that the production of the others may be increased one-tenth. But will the total product be increased? Not in the least: there will be eight hundred and ten laborers producing as nine hundred, while, to accomplish their purpose, they would have to produce as one thousand. Now, it having been proved that farm-rent is proportional to the landed capital instead of to labor, and that it never diminishes, the debts must continue as in the past, while the labor has increased. Here, then, we have a society which is continually decimating itself, and which would destroy itself, did not the periodical occurrence of failures, bankruptcies, and political and economical catastrophes re-establish equilibrium, and distract attention from the real causes of the universal distress.
The monopoly of land and capital is followed by economical processes which also result in throwing laborers out of employment. Interest being a constant burden upon the shoulders of the farmer and the manufacturer, they exclaim, each speaking for himself, “I should have the means wherewith to pay my rent and interest, had I not to pay so many hands.” Then those admirable inventions, intended to assure the easy and speedy performance of labor, become so many infernal machines which kill laborers by thousands.
“A few years ago, the Countess of Strafford ejected fifteen thousand persons from her estate, who, as tenants, added to its value. This act of private administration was repeated in 1820, by another large Scotch proprietor, towards six hundred tenants and their families.” — Tissot: on Suicide and Revolt.
The author whom I quote, and who has written eloquent words concerning the revolutionary spirit which prevails in modern society, does not say whether he would have disapproved of a revolt on the part of these exiles. For myself, I avow boldly that in my eyes it would have been the first of rights, and the holiest of duties; and all that I desire to-day is that my profession of faith be understood.
Society devours itself, — 1. By the violent and periodical sacrifice of laborers: this we have just seen, and shall see again; 2. By the stoppage of the producer’s consumption caused by property. These two modes of suicide are at first simultaneous; but soon the first is given additional force by the second, famine uniting with usury to render labor at once more necessary and more scarce.
By the principles of commerce and political economy, that an industrial enterprise may be successful, its product must furnish, — 1. The interest on the capital employed; 2. Means for the preservation of this capital; 3. The wages of all the employees and contractors. Further, as large a profit as possible must be realized.
The financial shrewdness and rapacity of property is worthy of admiration. Each different name which increase takes affords the proprietor an opportunity to receive it, — 1. In the form of interest; 2. In the form of profit. For, it says, a part of the income derived from manufactures consists of interest on the capital employed. If one hundred thousand francs have been invested in a manufacturing enterprise, and in a year’s time five thousand francs have been received therefrom in addition to the expenses, there has been no profit, but only interest on the capital. Now, the proprietor is not a man to labor for nothing. Like the lion in the fable, he gets paid in each of his capacities; so that, after he has been served, nothing is left for his associates.
Ego primam tollo, nominor quia leo.
Secundam quia sum fortis tribuctis mihi.
Tum quia plus valeo, me sequetur tertia.
Malo adficietur, si quis quartam tetigerit.
I know nothing prettier than this fable.
“I am the contractor. I take the first share.
I am the laborer, I take the second.
I am the capitalist, I take the third.
I am the proprietor, I take the whole.”
In four lines, Phaedrus has summed up all the forms of property.
I say that this interest, all the more then this profit, is impossible.
What are laborers in relation to each other? So many members of a large industrial society, to each of whom is assigned a certain portion of the general production, by the principle of the division of labor and functions. Suppose, first, that this society is composed of but three individuals, — a cattle-raiser, a tanner, and a shoemaker. The social industry, then, is that of shoemaking. If I should ask what ought to be each producer’s share of the social product, the first schoolboy whom I should meet would answer, by a rule of commerce and association, that it should be one-third. But it is not our duty here to balance the rights of laborers conventionally associated: we have to prove that, whether associated or not, our three workers are obliged to act as if they were; that, whether they will or no, they are associated by the force of things, by mathematical necessity.
Three processes are required in the manufacture of shoes, — the rearing of cattle, the preparation of their hides, and the cutting and sewing. If the hide, on leaving the farmer’s stable, is worth one, it is worth two on leaving the tanner’s pit, and three on leaving the shoemaker’s shop. Each laborer has produced a portion of the utility; so that, by adding all these portions together, we get the value of the article. To obtain any quantity whatever of this article, each producer must pay, then, first for his own labor, and second for the labor of the other producers. Thus, to obtain as many shoes as can be made from ten hides, the farmer will give thirty raw hides, and the tanner twenty tanned hides. For, the shoes that are made from ten hides are worth thirty raw hides, in consequence of the extra labor bestowed upon them; just as twenty tanned hides are worth thirty raw hides, on account of the tanner’s labor. But if the shoemaker demands thirty-three in the farmer’s product, or twenty-two in the tanner’s, for ten in his own, there will be no exchange; for, if there were, the farmer and the tanner, after having paid the shoemaker ten for his labor, would have to pay eleven for that which they had themselves sold for ten, — which, of course, would be impossible.
Well, this is precisely what happens whenever an emolument of any kind is received; be it called revenue, farm-rent, interest, or profit. In the little community of which we are speaking, if the shoemaker — in order to procure tools, buy a stock of leather, and support himself until he receives something from his investment — borrows money at interest, it is clear that to pay this interest he will have to make a profit off the tanner and the farmer. But as this profit is impossible unless fraud is used, the interest will fall back upon the shoulders of the unfortunate shoemaker, and ruin him.
I have imagined a case of unnatural simplicity. There is no human society but sustains more than three vocations. The most uncivilized society supports numerous industries; to-day, the number of industrial functions (I mean by industrial functions all useful functions) exceeds, perhaps, a thousand. However numerous the occupations, the economic law remains the same, — That the producer may live, his wages must repurchase his product.
The economists cannot be ignorant of this rudimentary principle of their pretended science: why, then, do they so obstinately defend property, and inequality of wages, and the legitimacy of usury, and the honesty of profit, — all of which contradict the economic law, and make exchange impossible? A contractor pays one hundred thousand francs for raw material, fifty thousand francs in wages, and then expects to receive a product of two hundred thousand francs, — that is, expects to make a profit on the material and on the labor of his employees; but if the laborers and the purveyor of the material cannot, with their combined wages, repurchase that which they have produced for the contractor, how can they live? I will develop my question. Here details become necessary.
If the workingman receives for his labor an average of three francs per day, his employer (in order to gain any thing beyond his own salary, if only interest on his capital) must sell the day’s labor of his employee, in the form of merchandise, for more than three francs. The workingman cannot, then, repurchase that which he has produced for his master. It is thus with all trades whatsoever. The tailor, the hatter, the cabinet-maker, the blacksmith, the tanner, the mason, the jeweller, the printer, the clerk, &c., even to the farmer and wine-grower, cannot repurchase their products; since, producing for a master who in one form or another makes a profit, they are obliged to pay more for their own labor than they get for it.
In France, twenty millions of laborers, engaged in all the branches of science, art, and industry, produce every thing which is useful to man. Their annual wages amount, it is estimated. to twenty thousand millions; but, in consequence of the right of property, and the multifarious forms of increase, premiums, tithes, interests, fines, profits, farm-rents, house-rents, revenues, emoluments of every nature and description, their products are estimated by the proprietors and employers at twenty-five thousand millions. What does that signify? That the laborers, who are obliged to repurchase these products in order to live, must either pay five for that which they produced for four, or fast one day in five.
If there is an economist in France able to show that this calculation is false, I summon him to appear; and I promise to retract all that I have wrongfully and wickedly uttered in my attacks upon property.
Let us now look at the results of this profit.
If the wages of the workingmen were the same in all pursuits, the deficit caused by the proprietor’s tax would be felt equally everywhere; but also the cause of the evil would be so apparent, that it would soon be discovered and suppressed. But, as there is the same inequality of wages (from that of the scavenger up to that of the minister of state) as of property, robbery continually rebounds from the stronger to the weaker; so that, since the laborer finds his hardships increase as he descends in the social scale, the lowest class of people are literally stripped naked and eaten alive by the others.
The laboring people can buy neither the cloth which they weave, nor the furniture which they manufacture, nor the metal which they forge, nor the jewels which they cut, nor the prints which they engrave. They can procure neither the wheat which they plant, nor the wine which they grow, nor the flesh of the animals which they raise. They are allowed neither to dwell in the houses which they build, nor to attend the plays which their labor supports, nor to enjoy the rest which their body requires. And why? Because the right of increase does not permit these things to be sold at the cost-price, which is all that laborers can afford to pay. On the signs of those magnificent warehouses which he in his poverty admires, the laborer reads in large letters: “This is thy work, and thou shalt not have it.” Sic vos non vobis!
Every manufacturer who employs one thousand laborers, and gains from them daily one sou each, is slowly pushing them into a state of misery. Every man who makes a profit has entered into a conspiracy with famine. But the whole nation has not even this labor, by means of which property starves it. And why? Because the workers are forced by the insufficiency of their wages to monopolize labor; and because, before being destroyed by dearth, they destroy each other by competition. Let us pursue this truth no further.
If the laborer’s wages will not purchase his product, it follows that the product is not made for the producer. For whom, then, is it intended? For the richer consumer; that is, for only a fraction of society. But when the whole society labors, it produces for the whole society. If, then, only a part of society consumes, sooner or later a part of society will be idle. Now, idleness is death, as well for the laborer as for the proprietor. This conclusion is inevitable.
The most distressing spectacle imaginable is the sight of producers resisting and struggling against this mathematical necessity, this power of figures to which their prejudices blind them.
If one hundred thousand printers can furnish reading-matter enough for thirty-four millions of men, and if the price of books is so high that only one-third of that number can afford to buy them, it is clear that these one hundred thousand printers will produce three times as much as the booksellers can sell. That the products of the laborers may never exceed the demands of the consumers, the laborers must either rest two days out of three, or, separating into three groups, relieve each other three times a week, month, or quarter; that is, during two-thirds of their life they must not live. But industry, under the influence of property, does not proceed with such regularity. It endeavors to produce a great deal in a short time, because the greater the amount of products, and the shorter the time of production, the less each product costs. As soon as a demand begins to be felt, the factories fill up, and everybody goes to work. Then business is lively, and both governors and governed rejoice. But the more they work to-day, the more idle will they be hereafter; the more they laugh, the more they shall weep. Under the rule of property, the flowers of industry are woven into none but funeral wreaths. The laborer digs his own grave.
If the factory stops running, the manufacturer has to pay interest on his capital the same as before. He naturally tries, then, to continue production by lessening expenses. Then comes the lowering of wages; the introduction of machinery; the employment of women and children to do the work of men; bad workmen, and wretched work. They still produce, because the decreased cost creates a larger market; but they do not produce long, because, the cheapness being due to the quantity and rapidity of production, the productive power tends more than ever to outstrip consumption. It is when laborers, whose wages are scarcely sufficient to support them from one day to another, are thrown out of work, that the consequences of the principle of property become most frightful. They have not been able to economize, they have made no savings, they have accumulated no capital whatever to support them even one day more. Today the factory is closed. To-morrow the people starve in the streets. Day after tomorrow they will either die in the hospital, or eat in the jail.
And still new misfortunes come to complicate this terrible situation. In consequence of the cessation of business, and the extreme cheapness of merchandise, the manufacturer finds it impossible to pay the interest on his borrowed capital; whereupon his frightened creditors hasten to withdraw their funds. Production is suspended, and labor comes to a standstill. Then people are astonished to see capital desert commerce, and throw itself upon the Stock Exchange; and I once heard M. Blanqui bitterly lamenting the blind ignorance of capitalists. The cause of this movement of capital is very simple; but for that very reason an economist could not understand it, or rather must not explain it. The cause lies solely in competition.
I mean by competition, not only the rivalry between two parties engaged in the same business, but the general and simultaneous effort of all kinds of business to get ahead of each other. This effort is to-day so strong, that the price of merchandise scarcely covers the cost of production and distribution; so that, the wages of all laborers being lessened, nothing remains, not even interest for the capitalists.
The primary cause of commercial and industrial stagnations is, then, interest on capital, — that interest which the ancients with one accord branded with the name of usury, whenever it was paid for the use of money, but which they did not dare to condemn in the forms of house-rent, farm-rent, or profit: as if the nature of the thing lent could ever warrant a charge for the lending; that is, robbery.
In proportion to the increase received by the capitalist will be the frequency and intensity of commercial crises, — the first being given, we always can determine the two others; and vice versa. Do you wish to know the regulator of a society? Ascertain the amount of active capital; that is, the capital bearing interest, and the legal rate of this interest.
The course of events will be a series of overturns, whose number and violence will be proportional to the activity of capital.
In 1839, the number of failures in Paris alone was one thousand and sixty-four. This proportion was kept up in the early months of 1840; and, as I write these lines, the crisis is not yet ended. It is said, further, that the number of houses which have wound up their business is greater than the number of declared failures. By this flood, we may judge of the waterspout’s power of suction.
The decimation of society is now imperceptible and permanent, now periodical and violent; it depends upon the course which property takes. In a country where the property is pretty evenly distributed, and where little business is done, — the rights and claims of each being balanced by those of others, — the power of invasion is destroyed. There — it may be truly said — property does not exist, since the right of increase is scarcely exercised at all. The condition of the laborers — as regards security of life — is almost the same as if absolute equality prevailed among them. They are deprived of all the advantages of full and free association, but their existence is not endangered in the least. With the exception of a few isolated victims of the right of property — of this misfortune whose primary cause no one perceives — the society appears to rest calmly in the bosom of this sort of equality. But have a care; it is balanced on the edge of a sword: at the slightest shock, it will fall and meet with death!
Ordinarily, the whirlpool of property localizes itself. On the one hand, farm-rent stops at a certain point; on the other, in consequence of competition and over-production, the price of manufactured goods does not rise, — so that the condition of the peasant varies but little, and depends mainly on the seasons. The devouring action of property bears, then, principally upon business. We commonly say commercial crises, not agricultural crises; because, while the farmer is eaten up slowly by the right of increase, the manufacturer is swallowed at a single mouthful. This leads to the cessation of business, the destruction of fortunes, and the inactivity of the working people; who die one after another on the highways, and in the hospitals, prisons, and galleys.
To sum up this proposition: —
Property sells products to the laborer for more than it pays him for them; therefore it is impossible.
I. Certain reformers, and even the most of the publicists — who, though belonging to no particular school, busy themselves in devising means for the amelioration of the lot of the poorer and more numerous class — lay much stress now-a-days on a better organization of labor. The disciples of Fourier, especially, never stop shouting, “On to the phalanx!” declaiming in the same breath against the foolishness and absurdity of other sects. They consist of half-a-dozen incomparable geniuses who have discovered that five and four make nine; take two away, and nine remain, — and who weep over the blindness of France, who refuses to believe in this astonishing arithmetic.
In fact, the Fourierists proclaim themselves, on the one hand, defenders of property, of the right of increase, which they have thus formulated: To each according to his capital, his labor, and his skill. On the other hand, they wish the workingman to come into the enjoyment of all the wealth of society; that is, — abridging the expression, — into the undivided enjoyment of his own product. Is not this like saying to the workingman, “Labor, you shall have three francs per day; you shall live on fifty-five sous; you shall give the rest to the proprietor, and thus you will consume three francs"?
If the above speech is not an exact epitome of Charles Fourier’s system, I will subscribe to the whole phalansterian folly with a pen dipped in my own blood.
Of what use is it to reform industry and agriculture, — of what use, indeed, to labor at all, — if property is maintained, and labor can never meet its expenses? Without the abolition of property, the organization of labor is neither more nor less than a delusion. If production should be quadrupled, — a thing which does not seem to me at all impossible, — it would be labor lost: if the additional product was not consumed, it would be of no value, and the proprietor would decline to receive it as interest; if it was consumed, all the disadvantages of property would reappear. It must be confessed that the theory of passional attraction is gravely at fault in this particular, and that Fourier, when he tried to harmonize the passion for property, — a bad passion, whatever he may say to the contrary, — blocked his own chariot-wheels.
The absurdity of the phalansterian economy is so gross, that many people suspect Fourier, in spite of all the homage paid by him to proprietors, of having been a secret enemy of property. This opinion might be supported by plausible arguments; still it is not mine. Charlatanism was too important a part for such a man to play, and sincerity too insignificant a one. I would rather think Fourier ignorant (which is generally admitted) than disingenuous. As for his disciples, before they can formulate any opinion of their own, they must declare once for all, unequivocally and with no mental reservation, whether they mean to maintain property or not, and what they mean by their famous motto, — “To each according to his capital, his labor, and his skill.”
II. But, some half-converted proprietor will observe, “Would it not be possible, by suppressing the bank, incomes, farm-rent, house-rent, usury of all kinds, and finally property itself, to proportion products to capacities? That was St. Simon’s idea; it was also Fourier’s; it is the desire of the human conscience; and no decent person would dare maintain that a minister of state should live no better than a peasant.”
O Midas! your ears are long! What! will you never understand that disparity of wages and the right of increase are one and the same? Certainly, St. Simon, Fourier, and their respective flocks committed a serious blunder in attempting to unite, the one, inequality and communism; the other, inequality and property: but you, a man of figures, a man of economy, — you, who know by heart your logarithmic tables, — how can you make so stupid a mistake? Does not political economy itself teach you that the product of a man, whatever be his individual capacity, is never worth more than his labor, and that a man’s labor is worth no more than his consumption? You remind me of that great constitution-framer, poor Pinheiro-Ferreira, the Sieyčs of the nineteenth century, who, dividing the citizens of a nation into twelve classes, — or, if you prefer, into twelve grades, — assigned to some a salary of one hundred thousand francs each; to others, eighty thousand; then twenty-five thousand, fifteen thousand, ten thousand, &c., down to one thousand five hundred, and one thousand francs, the minimum allowance of a citizen. Pinheiro loved distinctions, and could no more conceive of a State without great dignitaries than of an army without drum-majors; and as he also loved, or thought he loved, liberty, equality, and fraternity, he combined the good and the evil of our old society in an eclectic philosophy which he embodied in a constitution. Excellent Pinheiro! Liberty even to passive submission, fraternity even to identity of language, equality even in the jury-box and at the guillotine, — such was his ideal republic. Unappreciated genius, of whom the present century was unworthy, but whom the future will avenge!
Listen, proprietor. Inequality of talent exists in fact; in right it is not admissible, it goes for nothing, it is not thought of. One Newton in a century is equal to thirty millions of men; the psychologist admires the rarity of so fine a genius, the legislator sees only the rarity of the function. Now, rarity of function bestows no privilege upon the functionary; and that for several reasons, all equally forcible.
1. Rarity of genius was not, in the Creator’s design, a motive to compel society to go down on its knees before the man of superior talents, but a providential means for the performance of all functions to the greatest advantage of all.
2. Talent is a creation of society rather than a gift of Nature; it is an accumulated capital, of which the receiver is only the guardian. Without society, — without the education and powerful assistance which it furnishes, — the finest nature would be inferior to the most ordinary capacities in the very respect in which it ought to shine. The more extensive a man’s knowledge, the more luxuriant his imagination, the more versatile his talent, — the more costly has his education been, the more remarkable and numerous were his teachers and his models, and the greater is his debt. The farmer produces from the time that he leaves his cradle until he enters his grave: the fruits of art and science are late and scarce; frequently the tree dies before the fruit ripens. Society, in cultivating talent, makes a sacrifice to hope.
3. Capacities have no common standard of comparison: the conditions of development being equal, inequality of talent is simply speciality of talent.
4. Inequality of wages, like the right of increase, is economically impossible. Take the most favorable case, — that where each laborer has furnished his maximum production; that there may be an equitable distribution of products, the share of each must be equal to the quotient of the total production divided by the number of laborers. This done, what remains wherewith to pay the higher wages? Nothing whatever.
Will it be said that all laborers should be taxed? But, then, their consumption will not be equal to their production, their wages will not pay for their productive service, they will not be able to repurchase their product, and we shall once more be afflicted with all the calamities of property. I do not speak of the injustice done to the defrauded laborer, of rivalry, of excited ambition, and burning hatred, — these may all be important considerations, but they do not hit the point.
On the one hand, each laborer’s task being short and easy, and the means for its successful accomplishment being equal in all cases, how could there be large and small producers? On the other hand, all functions being equal, either on account of the actual equivalence of talents and capacities, or on account of social co-operation, how could a functionary claim a salary proportional to the worth of his genius?
But, what do I say? In equality wages are always proportional to talents. What is the economical meaning of wages? The reproductive consumption of the laborer. The very act by which the laborer produces constitutes, then, this consumption, exactly equal to his production, of which we are speaking. When the astronomer produces observations, the poet verses, or the savant experiments, they consume instruments, books, travels, &c., &c.; now, if society supplies this consumption, what more can the astronomer, the savant, or the poet demand? We must conclude, then, that in equality, and only in equality, St. Simon’s adage — To each according to his capacity to each capacity according to its results — finds its full and complete application.
III. The great evil — the horrible and ever-present evil — arising from property, is that, while property exists, population, however reduced, is, and always must be, over-abundant. Complaints have been made in all ages of the excess of population; in all ages property has been embarrassed by the presence of pauperism, not perceiving that it caused it. Further, — nothing is more curious than the diversity of the plans proposed for its extermination. Their atrocity is equalled only by their absurdity.
The ancients made a practice of abandoning their children. The wholesale and retail slaughter of slaves, civil and foreign wars, also lent their aid. In Rome (where property held full sway), these three means were employed so effectively, and for so long a time, that finally the empire found itself without inhabitants. When the barbarians arrived, nobody was to be found; the fields were no longer cultivated; grass grew in the streets of the Italian cities.
In China, from time immemorial, upon famine alone has devolved the task of sweeping away the poor. The people living almost exclusively upon rice, if an accident causes the crop to fail, in a few days hunger kills the inhabitants by myriads; and the Chinese historian records in the annals of the empire, that in such a year of such an emperor twenty, thirty, fifty, one hundred thousand inhabitants died of starvation. Then they bury the dead, and recommence the production of children until another famine leads to the same result. Such appears to have been, in all ages, the Confucian economy.
I borrow the following facts from a modern economist: —
“Since the fourteenth and fifteenth centuries, England has been preyed upon by pauperism. At that time beggars were punished by law.” Nevertheless, she had not one-fourth as large a population as she has to-day.
“Edward prohibits alms-giving, on pain of imprisonment... . The laws of 1547 and 1656 prescribe a like punishment, in case of a second offence. Elizabeth orders that each parish shall support its own paupers. But what is a pauper? Charles II. decides that an undisputed residence of forty days constitutes a settlement in a parish; but, if disputed, the new-comer is forced to pack off. James II. modifies this decision, which is again modified by William. In the midst of trials, reports, and modifications, pauperism increases, and the workingman languishes and dies.
“The poor-tax in 1774 exceeded forty millions of francs; in 1783-4-5, it averaged fifty-three millions; 1813, more than a hundred and eighty-seven millions five hundred thousand francs; 1816, two hundred and fifty millions; in 1817, it is estimated at three hundred and seventeen millions.
“In 1821, the number of paupers enrolled upon the parish lists was estimated at four millions, nearly one-third of the population.
“France. In 1544, Francis I. establishes a compulsory tax in behalf of the poor. In 1566 and 1586, the same principle is applied to the whole kingdom.
“Under Louis XIV., forty thousand paupers infested the capital [as many in proportion as to-day]. Mendicity was punished severely. In 1740, the Parliament of Paris re-establishes within its own jurisdiction the compulsory assessment.
"The Constituent Assembly, frightened at the extent of the evil and the difficulty of curing it, ordains the statu quo.
“The Convention proclaims assistance of the poor to be a national debt. Its law remains unexecuted.
“Napoleon also wishes to remedy the evil: his idea is imprisonment. ‘In that way,’ said he, ‘I shall protect the rich from the importunity of beggars, and shall relieve them of the disgusting sight of abject poverty.’ “
O wonderful man!
From these facts, which I might multiply still farther, two things are to be inferred, — the one, that pauperism is independent of population; the other, that all attempts hitherto made at its extermination have proved abortive.
Catholicism founds hospitals and convents, and commands charity; that is, she encourages mendicity. That is the extent of her insight as voiced by her priests.
The secular power of Christian nations now orders taxes on the rich, now banishment and imprisonment for the poor; that is, on the one hand, violation of the right of property, and, on the other, civil death and murder.
The modern economists — thinking that pauperism is caused by the excess of population, exclusively — have devoted themselves to devising checks. Some wish to prohibit the poor from marrying; thus, — having denounced religious celibacy, — they propose compulsory celibacy, which will inevitably become licentious celibacy.
Others do not approve this method, which they deem too violent; and which, they say, deprives the poor man of the only pleasure which he knows in this world. They would simply recommend him to be prudent. This opinion is held by Malthus, Sismondi, Say, Droz, Duchatel, &c. But if the poor are to be prudent, the rich must set the example. Why should the marriageable age of the latter be fixed at eighteen years, while that of the former is postponed until thirty?
Again, they would do well to explain clearly what they mean by this matrimonial prudence which they so urgently recommend to the laborer; for here equivocation is especially dangerous, and I suspect that the economists are not thoroughly understood. “Some half-enlightened ecclesiastics are alarmed when they hear prudence in marriage advised; they fear that the divine injunction — increase and multiply — is to be set aside. To be logical, they must anathematize bachelors.” (J. Droz: Political Economy.)
M. Droz is too honest a man, and too little of a theologian, to see why these casuists are so alarmed; and this chaste ignorance is the very best evidence of the purity of his heart. Religion never has encouraged early marriages; and the kind of prudence which it condemns is that described in this Latin sentence from Sanchez, — An licet ob metum liberorum semen extra vas ejicere?
Destutt de Tracy seems to dislike prudence in either form. He says: “I confess that I no more share the desire of the moralists to diminish and restrain our pleasures, than that of the politicians to increase our procreative powers, and accelerate reproduction.” He believes, then, that we should love and marry when and as we please. Widespread misery results from love and marriage, but this our philosopher does not heed. True to the dogma of the necessity of evil, to evil he looks for the solution of all problems. He adds: “The multiplication of men continuing in all classes of society, the surplus members of the upper classes are supported by the lower classes, and those of the latter are destroyed by poverty.” This philosophy has few avowed partisans; but it has over every other the indisputable advantage of demonstration in practice. Not long since France heard it advocated in the Chamber of Deputies, in the course of the discussion on the electoral reform, — Poverty will always exist. That is the political aphorism with which the minister of state ground to powder the arguments of M. Arago. Poverty will always exist! Yes, so long as property does.
The Fourierists — inventors of so many marvellous contrivances — could not, in this field, belie their character. They invented four methods of checking increase of population at will.
1. The vigor of women. On this point they are contradicted by experience; for, although vigorous women may be less likely to conceive, nevertheless they give birth to the healthiest children; so that the advantage of maternity is on their side.
2. Integral exercise, or the equal development of all the physical powers. If this development is equal, how is the power of reproduction lessened?
3. The gastronomic regime; or, in plain English, the philosophy of the belly. The Fourierists say, that abundance of rich food renders women sterile; just as too much sap — while enhancing the beauty of flowers — destroys their reproductive capacity. But the analogy is a false one. Flowers become sterile when the stamens — or male organs — are changed into petals, as may be seen by inspecting a rose; and when through excessive dampness the pollen loses its fertilizing power. Then, — in order that the gastronomic régime may produce the results claimed for it, — not only must the females be fattened, but the males must be rendered impotent.
4. Phanerogamic morality, or public concubinage. I know not why the phalansterians use Greek words to convey ideas which can be expressed so clearly in French. This method — like the preceding one — is copied from civilized customs. Fourier, himself, cites the example of prostitutes as a proof.
Now we have no certain knowledge yet of the facts which he quotes. So states Parent Duchatelet in his work on “Prostitution.”
From all the information which I have been able to gather, I find that all the remedies for pauperism and fecundity — sanctioned by universal practice, philosophy, political economy, and the latest reformers — may be summed up in the following list: masturbation, onanism, sodomy, tribadie, polyandry, prostitution, castration, continence, abortion, and infanticide.
All these methods being proved inadequate, there remains proscription.
Unfortunately, proscription, while decreasing the number of the poor, increases their proportion. If the interest charged by the proprietor upon the product is equal only to one-twentieth of the product (by law it is equal to one-twentieth of the capital), it follows that twenty laborers produce for nineteen only; because there is one among them, called proprietor, who eats the share of two. Suppose that the twentieth laborer — the poor one — is killed: the production of the following year will be diminished one-twentieth; consequently the nineteenth will have to yield his portion, and perish. For, since it is not one-twentieth of the product of nineteen which must be paid to the proprietor, but one-twentieth of the product of twenty (see third proposition), each surviving laborer must sacrifice one-twentieth plus one four-hundredth of his product; in other words, one man out of nineteen must be killed. Therefore, while property exists, the more poor people we kill, the more there are born in proportion.
Malthus, who proved so clearly that population increases in geometrical progression, while production increases only in arithmetical progression, did not notice this pauperizing power of property. Had he observed this, he would have understood that, before trying to check reproduction, the right of increase should be abolished; because, wherever that right is tolerated, there are always too many inhabitants, whatever the extent or fertility of the soil.
It will be asked, perhaps, how I would maintain a balance between population and production; for sooner or later this problem must be solved. The reader will pardon me, if I do not give my method here. For, in my opinion, it is useless to say a thing unless we prove it. Now, to explain my method fully would require no less than a formal treatise. It is a thing so simple and so vast, so common and so extraordinary, so true and so misunderstood, so sacred and so profane, that to name it without developing and proving it would serve only to excite contempt and incredulity. One thing at a time. Let us establish equality, and this remedy will soon appear; for truths follow each other, just as crimes and errors do.
What is government? Government is public economy, the supreme administrative power over public works and national possessions.
Now, the nation is like a vast society in which all the, citizens are stockholders. Each one has a deliberative voice in the assembly; and, if the shares are equal, has one vote at his disposal. But, under the régime of property, there is great inequality between the shares of the stockholders; therefore, one may have several hundred votes, while another has only one. If, for example, I enjoy an income of one million; that is, if I am the proprietor of a fortune of thirty or forty millions well invested, and if this fortune constitutes 1/30000 of the national capital, — it is clear that the public administration of my property would form 1/30000 of the duties of the government; and, if the nation had a population of thirty-four millions, that I should have as many votes as one thousand one hundred and thirty-three simple stockholders.
Thus, when M. Arago demands the right of suffrage for all members of the National Guard, he is perfectly right; since every citizen is enrolled for at least one national share, which entitles him to one vote. But the illustrious orator ought at the same time to demand that each elector shall have as many votes as he has shares; as is the case in commercial associations. For to do otherwise is to pretend that the nation has a right to dispose of the property of individuals without consulting them; which is contrary to the right of property. In a country where property exists, equality of electoral rights is a violation of property.
Now, if each citizen’s sovereignty must and ought to be proportional to his property, it follows that the small stock holders are at the mercy of the larger ones; who will, as soon as they choose, make slaves of the former, marry them at pleasure, take from them their wives, castrate their sons, prostitute their daughters, throw the aged to the sharks, — and finally will be forced to serve themselves in the same way, unless they prefer to tax themselves for the support of their servants. In such a condition is Great Britain to-day. John Bull — caring little for liberty, equality, or dignity — prefers to serve and beg. But you, bonhomme Jacques?
Property is incompatible with political and civil equality; then property is impossible.
1. When the vote of the third estate was doubled by the States-General of 1789, property was grossly violated. The nobility and the clergy possessed three-fourths of the soil of France; they should have controlled three-fourths of the votes in the national representation. To double the vote of the third estate was just, it is said, since the people paid nearly all the taxes. This argument would be sound, if there were nothing to be voted upon but taxes. But it was a question at that time of reforming the government and the constitution; consequently, the doubling of the vote of the third estate was a usurpation, and an attack on property.
2. If the present representatives of the radical opposition should come into power, they would work a reform by which every National Guard should be an elector, and every elector eligible for office, — an attack on property.
They would lower the rate of interest on public funds, — an attack on property.
They would, in the interest of the public, pass laws to regulate the exportation of cattle and wheat, — an attack on property.
They would alter the assessment of taxes, — an attack on property.
They would educate the people gratuitously, — a conspiracy against property.
They would organize labor; that is, they would guarantee labor to the workingman, and give him a share in the profits, — the abolition of property.
Now, these same radicals are zealous defenders of property, — a radical proof that they know not what they do, nor what they wish.
3. Since property is the grand cause of privilege and despotism, the form of the republican oath should be changed. Instead of, “I swear hatred to royalty,” henceforth the new member of a secret society should say, “I swear hatred to property.”
I. If, with the economists, we consider the laborer as a living machine, we must regard the wages paid to him as the amount necessary to support this machine, and keep it in repair. The head of a manufacturing establishment — who employs laborers at three, five, ten, and fifteen francs per day, and who charges twenty francs for his superintendence — does not regard his disbursements as losses, because he knows they will return to him in the form of products. Consequently, labor and reproductive consumption are identical.
What is the proprietor? He is a machine which does not work; or, which working for its own pleasure, and only when it sees fit, produces nothing.
What is it to consume as a proprietor? It is to consume without working, to consume without reproducing. For, once more, that which the proprietor consumes as a laborer comes back to him; he does not give his labor in exchange for his property, since, if he did, he would thereby cease to be a proprietor. In consuming as a laborer, the proprietor gains, or at least does not lose, since he recovers that which he consumes; in consuming as a proprietor, he impoverishes himself. To enjoy property, then, it is necessary to destroy it; to be a real proprietor, one must cease to be a proprietor.
The laborer who consumes his wages is a machine which destroys and reproduces; the proprietor who consumes his income is a bottomless gulf, — sand which we water, a stone which we sow. So true is this, that the proprietor — neither wishing nor knowing how to produce, and perceiving that as fast as he uses his property he destroys it for ever — has taken the precaution to make some one produce in his place. That is what political economy, speaking in the name of eternal justice, calls producing by his capital, — producing by his tools. And that is what ought to be called producing by a slave — producing as a thief and as a tyrant. He, the proprietor, produce! ... The robber might say, as well: “I produce.”
The consumption of the proprietor has been styled luxury, in opposition to useful consumption. From what has just been said, we see that great luxury can prevail in a nation which is not rich, — that poverty even increases with luxury, and vice versâ. The economists (so much credit must be given them, at least) have caused such a horror of luxury, that to-day a very large number of proprietors — not to say almost all — ashamed of their idleness — labor, economize, and capitalize. They have jumped from the frying-pan into the fire.
I cannot repeat it too often: the proprietor who thinks to deserve his income by working, and who receives wages for his labor, is a functionary who gets paid twice; that is the only difference between an idle proprietor and a laboring proprietor. By his labor, the proprietor produces his wages only — not his income. And since his condition enables him to engage in the most lucrative pursuits, it may be said that the proprietor’s labor harms society more than it helps it. Whatever the proprietor does, the consumption of his income is an actual loss, which his salaried functions neither repair nor justify; and which would annihilate property, were it not continually replenished by outside production.
II. Then, the proprietor who consumes annihilates the product: he does much worse if he lays it up. The things which he lays by pass into another world; nothing more is seen of them, not even the caput mortuum, — the smoke. If we had some means of transportation by which to travel to the moon, and if the proprietors should be seized with a sudden fancy to carry their savings thither, at the end of a certain time our terraqueous planet would be transported by them to its satellite!
The proprietor who lays up products will neither allow others to enjoy them, nor enjoy them himself; for him there is neither possession nor property. Like the miser, he broods over his treasures: he does not use them. He may feast his eyes upon them; he may lie down with them; he may sleep with them in his arms: all very fine, but coins do not breed coins. No real property without enjoyment; no enjoyment without consumption; no consumption without loss of property, — such is the inflexible necessity to which God’s judgment compels the proprietor to bend. A curse upon property !
III. The proprietor who, instead of consuming his income, uses it as capital, turns it against production, and thereby makes it impossible for him to exercise his right. For the more he increases the amount of interest to be paid upon it, the more he is compelled to diminish wages. Now, the more he diminishes wages, — that is, the less he devotes to the maintenance and repair of the machines, — the more he diminishes the quantity of labor; and with the quantity of labor the quantity of product, and with the quantity of product the very source of his income. This is clearly shown by the following example: —
Take an estate consisting of arable land, meadows, and vineyards, containing the dwellings of the owner and the tenant; and worth, together with the farming implements, one hundred thousand francs, the rate of increase being three per cent. If, instead of consuming his revenue, the proprietor uses it, not in enlarging but in beautifying his estate, can he annually demand of his tenant an additional ninety francs on account of the three thousand francs which he has thus added to his capital? Certainly not; for on such conditions the tenant, though producing no more than before, would soon be obliged to labor for nothing, — what do I say? to actually suffer loss in order to hold his lease.
In fact, revenue can increase only as productive soil increases: it is useless to build walls of marble, and work with plows of gold. But, since it is impossible to go on acquiring for ever, to add estate to estate, to continue one’s possessions, as the Latins said; and since, moreover, the proprietor always has means wherewith to capitalize, — it follows that the exercise of his right finally becomes impossible.
Well, in spite of this impossibility, property capitalizes, and in capitalizing increases its revenue; and, without stopping to look at the particular cases which occur in commerce, manufacturing operations, and banking, I will cite a graver fact, — one which directly affects all citizens. I mean the indefinite increase of the budget.
The taxes increase every year. It would be difficult to tell in which department of the government the expenses increase; for who can boast of any knowledge as to the budget? On this point, the ablest financiers continually disagree. What is to be thought, I ask, of the science of government, when its professors cannot understand one another’s figures? Whatever be the immediate causes of this growth of the budget, it is certain that taxation increases at a rate which causes everybody to despair. Everybody sees it, everybody acknowledges it; but nobody seems to understand the primary cause. Now, I say that it cannot be otherwise, — that it is necessary and inevitable.
A nation is the tenant of a rich proprietor called the government, to whom it pays, for the use of the soil, a farm-rent called a tax. Whenever the government makes war, loses or gains a battle, changes the outfit of its army, erects a monument, digs a canal, opens a road, or builds a railway, it borrows money, on which the tax-payers pay interest; that is, the government, without adding to its productive capacity, increases its active capital, — in a word, capitalizes after the manner of the proprietor of whom I have just spoken.
Now, when a governmental loan is once contracted, and the interest is once stipulated, the budget cannot be reduced. For, to accomplish that, either the capitalists must relinquish their interest, which would involve an abandonment of property; or the government must go into bankruptcy, which would be a fraudulent denial of the political principle; or it must pay the debt, which would require another loan; or it must reduce expenses, which is impossible, since the loan was contracted for the sole reason that the ordinary receipts were insufficient; or the money expended by the government must be reproductive, which requires an increase of productive capacity, — a condition excluded by our hypothesis; or, finally, the tax-payers must submit to a new tax in order to pay the debt, — an impossible thing. For, if this new tax were levied upon all citizens alike, half, or even more, of the citizens would be unable to pay it; if the rich had to bear the whole, it would be a forced contribution, — an invasion of property. Long financial experience has shown that the method of loans, though exceedingly dangerous, is much surer, more convenient, and less costly than any other method; consequently the government borrows, — that is, goes on capitalizing, — and increases the budget.
Then, a budget, instead of ever diminishing, must necessarily and continually increase. It is astonishing that the economists, with all their learning, have failed to perceive a fact so simple and so evident. If they have perceived it, why have they neglected to condemn it?
Historical Comment. — Much interest is felt at present in a financial operation which is expected to result in a reduction of the budget. It is proposed to change the present rate of increase, five per cent. Laying aside the politico-legal question to deal only with the financial question, — is it not true that, when five per cent. is changed to four per cent., it will then be necessary, for the same reasons, to change four to three; then three to two, then two to one, and finally to sweep away increase altogether? But that would be the advent of equality of conditions and the abolition of property. Now it seems to me, that an intelligent nation should voluntarily meet an inevitable revolution half way, instead of suffering itself to be dragged after the car of inflexible necessity.
If men, living in equality, should grant to one of their number the exclusive right of property; and this sole proprietor should lend one hundred francs to the human race at compound interest, payable to his descendants twenty-four generations hence, — at the end of six hundred years this sum of one hundred francs, at five per cent., would amount to 107,854,010,777,600 francs; two thousand six hundred and ninety-six and one-third times the capital of France (supposing her capital to be 40,000,000,000), or more than twenty times the value of the terrestrial globe!
Suppose that a man, in the reign of St. Louis, had borrowed one hundred francs, and had refused, — he and his heirs after him, — to return it. Even though it were known that the said heirs were not the rightful possessors, and that prescription had been interrupted always at the right moment, — nevertheless, by our laws, the last heir would be obliged to return the one hundred francs with interest, and interest on the interest; which in all would amount, as we have seen, to nearly one hundred and eight thousand billions.
Every day, fortunes are growing in our midst much more rapidly than this. The preceding example supposed the interest equal to one-twentieth of the capital, — it often equals one-tenth, one-fifth, one-half of the capital; and sometimes the capital itself.
The Fourierists — irreconcilable enemies of equality, whose partisans they regard as sharks — intend, by quadrupling production, to satisfy all the demands of capital, labor, and skill. But, should production be multiplied by four, ten, or even one hundred, property would soon absorb, by its power of accumulation and the effects of its capitalization, both products and capital, and the land, and even the laborers. Is the phalanstery to be prohibited from capitalizing and lending at interest? Let it explain, then, what it means by property.
I will carry these calculations no farther. They are capable of infinite variation, upon which it would be puerile for me to insist. I only ask by what standard judges, called upon to decide a suit for possession, fix the interest? And, developing the question, I ask, —
Did the legislator, in introducing into the Republic the principle of property, weigh all the consequences? Did he know the law of the possible? If he knew it, why is it not in the Code? Why is so much latitude allowed to the proprietor in accumulating property and charging interest, — to the judge in recognizing and fixing the domain of property, — to the State in its power to levy new taxes continually? At what point is the nation justified in repudiating the budget, the tenant his farm-rent, and the manufacturer the interest on his capital? How far may the idler take advantage of the laborer? Where does the right of spoliation begin, and where does it end? When may the producer say to the proprietor, “I owe you nothing more"? When is property satisfied? When must it cease to steal?
If the legislator did know the law of the possible, and disregarded it, what must be thought of his justice? If he did not know it, what must be thought of his wisdom? Either wicked or foolish, how can we recognize his authority?
If our charters and our codes are based upon an absurd hypothesis, what is taught in the law-schools? What does a judgment of the Court of Appeal amount to? About what do our Chambers deliberate? What is politics? What is our definition of a statesman? What is the meaning of jurisprudence? Should we not rather say jurisignorance?
If all our institutions are based upon an error in calculation, does it not follow that these institutions are so many shams? And if the entire social structure is built upon this absolute impossibility of property, is it not true that the government under which we live is a chimera, and our present society a utopia?
I. By the third corollary of our axiom, interest tells against the proprietor as well as the stranger. This economical principle is universally admitted. Nothing simpler at first blush; yet, nothing more absurd, more contradictory in terms, or more absolutely impossible.
The manufacturer, it is said, pays himself the rent on his house and capital. He pays himself; that is, he gets paid by the public who buy his products. For, suppose the manufacturer, who seems to make this profit on his property, wishes also to make it on his merchandise, can he then pay himself one franc for that which cost him ninety centimes, and make money by the operation? No: such a transaction would transfer the merchant’s money from his right hand to his left, but without any profit whatever.
Now, that which is true of a single individual trading with himself is true also of the whole business world. Form a chain of ten, fifteen, twenty producers; as many as you wish. If the producer A makes a profit out of the producer B. B’s loss must, according to economical principles, be made up by C, C’s by D; and so on through to Z.
But by whom will Z be paid for the loss caused him by the profit charged by A in the beginning? By the consumer, replies Say. Contemptible equivocation! Is this consumer any other, then, than A, B. C, D, &c., or Z? By whom will Z be paid? If he is paid by A, no one makes a profit; consequently, there is no property. If, on the contrary, Z bears the burden himself, he ceases to be a member of society; since it refuses him the right of property and profit, which it grants to the other associates.
Since, then, a nation, like universal humanity, is a vast industrial association which cannot act outside of itself, it is clear that no man can enrich himself without impoverishing another. For, in order that the right of property, the right of increase, may be respected in the case of A, it must be denied to Z; thus we see how equality of rights, separated from equality of conditions, may be a truth. The iniquity of political economy in this respect is flagrant.
“When I, a manufacturer, purchase the labor of a workingman, I do not include his wages in the net product of my business; on the contrary, I deduct them. But the workingman includes them in his net product... . “(Say: Political Economy.)
That means that all which the workingman gains is net product; but that only that part of the manufacturer’s gains is net product, which remains after deducting his wages. But why is the right of profit confined to the manufacturer? Why is this right, which is at bottom the right of property itself, denied to the workingman? In the terms of economical science, the workingman is capital. Now, all capital, beyond the cost of its maintenance and repair, must bear interest. This the proprietor takes care to get, both for his capital and for himself. Why is the workingman prohibited from charging a like interest for his capital, which is himself?
Property, then, is inequality of rights; for, if it were not inequality of rights, it would be equality of goods, — in other words, it would not exist. Now, the charter guarantees to all equality of rights. Then, by the charter, property is impossible.
II. Is A, the proprietor of an estate, entitled by the fact of his proprietorship to take possession of the field belonging to B. his neighbor? “No,” reply the proprietors; “but what has that to do with the right of property?” That I shall show you by a series of similar propositions.
Has C, a hatter, the right to force D, his neighbor and also a hatter, to close his shop, and cease his business? Not the least in the world.
But C wishes to make a profit of one franc on every hat, while D is content with fifty centimes. It is evident that D’s moderation is injurious to C’s extravagant claims. Has the latter a right to prevent D from selling? Certainly not.
Since D is at liberty to sell his hats fifty centimes cheaper than C if he chooses, C in his turn is free to reduce his price one franc. Now, D is poor, while C is rich; so that at the end of two or three years D is ruined by this intolerable competition, and C has complete control of the market. Can the proprietor D get any redress from the proprietor C? Can he bring a suit against him to recover his business and property? No; for D could have done the same thing, had he been the richer of the two.
On the same ground, the large proprietor A may say to the small proprietor B: “Sell me your field, otherwise you shall not sell your wheat,” — and that without doing him the least wrong, or giving him ground for complaint. So that A can devour B if he likes, for the very reason that A is stronger than B. Consequently, it is not the right of property which enables A and C to rob B and D, but the right of might. By the right of property, neither the two neighbors A and B, nor the two merchants C and D, could harm each other. They could neither dispossess nor destroy one another, nor gain at one another’s expense. The power of invasion lies in superior strength.
But it is superior strength also which enables the manufacturer to reduce the wages of his employees, and the rich merchant and well-stocked proprietor to sell their products for what they please. The manufacturer says to the laborer, “You are as free to go elsewhere with your services as I am to receive them. I offer you so much.” The merchant says to the customer, “Take it or leave it; you are master of your money, as I am of my goods. I want so much.” Who will yield? The weaker.
Therefore, without force, property is powerless against property, since without force it has no power to increase; therefore, without force, property is null and void.
Historical Comment. — The struggle between colonial and native sugars furnishes us a striking example of this impossibility of property. Leave these two industries to themselves, and the native manufacturer will be ruined by the colonist. To maintain the beet-root, the cane must be taxed: to protect the property of the one, it is necessary to injure the property of the other. The most remarkable feature of this business is precisely that to which the least attention is paid; namely, that, in one way or another, property has to be violated. Impose on each industry a proportional tax, so as to preserve a balance in the market, and you create a maximum price, — you attack property in two ways. On the one hand, your tax interferes with the liberty of trade; on the other, it does not recognize equality of proprietors. Indemnify the beet-root, you violate the property of the tax-payer. Cultivate the two varieties of sugar at the nation’s expense, just as different varieties of tobacco are cultivated, — you abolish one species of property. This last course would be the simpler and better one; but, to induce the nations to adopt it, requires such a co-operation of able minds and generous hearts as is at present out of the question.
Competition, sometimes called liberty of trade, — in a word, property in exchange, — will be for a long time the basis of our commercial legislation; which, from the economical point of view, embraces all civil laws and all government. Now, what is competition? A duel in a closed field, where arms are the test of right.
“Who is the liar, — the accused or the accuser?” said our barbarous ancestors. “Let them fight it out,” replied the still more barbarous judge; “the stronger is right.”
Which of us two shall sell spices to our neighbor? “Let each offer them for sale,” cries the economist; “the sharper, or the more cunning, is the more honest man, and the better merchant.”
Such is the exact spirit of the Code Napoleon.
The development of this proposition will be the résumé of the preceding ones.
1. It is a principle of economical justice, that products are bought only by products. Property, being capable of defence only on the ground that it produces utility, is, since it produces nothing, for ever condemned.
2. It is an economical law, that labor must be balanced by product. It is a fact that, with property, production costs more than it is worth.
3. Another economical law: The capital being given, production is measured, not by the amount of capital, but by productive capacity. Property, requiring income to be always proportional to capital without regard to labor, does not recognize this relation of equality between effect and cause.
4 and 5. Like the insect which spins its silk, the laborer never produces for himself alone. Property, demanding a double product and unable to obtain it, robs the laborer, and kills him.
6. Nature has given to every man but one mind, one heart, one will. Property, granting to one individual a plurality of votes, supposes him to have a plurality of minds.
7. All consumption which is not reproductive of utility is destruction. Property, whether it consumes or hoards or capitalizes, is productive of inutility, — the cause of sterility and death.
8. The satisfaction of a natural right always gives rise to an equation; in other words, the right to a thing is necessarily balanced by the possession of the thing. Thus, between the right to liberty and the condition of a free man there is a balance, an equation; between the right to be a father and paternity, an equation; between the right to security and the social guarantee, an equation. But between the right of increase and the receipt of this increase there is never an equation; for every new increase carries with it the right to another, the latter to a third, and so on for ever. Property, never being able to accomplish its object, is a right against Nature and against reason.
9. Finally, property is not self-existent. An extraneous cause — either force or fraud — is necessary to its life and action. In other words, property is not equal to property: it is a negation — a delusion — NOTHING.
1. There is an error in the author’s calculation here; but the translator, feeling sure that the reader will understand Proudhon’s meaning, prefers not to alter his figures. — Translator.
2. Fourier, having to multiply a whole number by a fraction, never failed, they say, to obtain a product much greater than the multiplicand. He affirmed that under his system of harmony the mercury would solidify when the temperature was above zero. He might as well have said that the Harmonians would make burning ice. I once asked an intelligent phalansterian what he thought of such physics. “I do not know,” he answered; “but I believe.” And yet the same man disbelieved in the doctrine of the Real Presence.
3. Hoc inter se differunt onanismus et manuspratio, nempe quod hćc a solitario exercetur, ille autem a duobus reciprocatur, masculo scilicet et faemina. Porro foedam hanc onanismi venerem ludentes uxoria mariti habent nunc omnigm suavissimam
4. Polyandry, — plurality of husbands.
5. Infanticide has just been publicly advocated in England, in a pamphlet written by a disciple of Malthus. He proposes an annual massacre of the innocents in all families containing more children than the law allows; and he asks that a magnificent cemetery, adorned with statues, groves, fountains, and flowers, be set apart as a special burying-place for the superfluous children. Mothers would resort to this delightful spot to dream of the happiness of these little angels, and would return, quite comforted, to give birth to others, to be buried in their turn.
6. “The financial situation of the English government was shown up in the House of Lords during the session of January 23. It is not an encouraging one. For several years the expenses have exceeded the receipts, and the Minister has been able to re-establish the balance only by loans renewed annually. The combined deficits of the years 1838 and 1839 amount to forty-seven million five hundred thousand francs. In 1840, the excess of expenses over receipts is expected to be twenty-two million five hundred thousand francs. Attention was called to these figures by Lord Ripon. Lord Melbourne replied: ‘The noble earl unhappily was right in declaring that the public expenses continually increase, and with him I must say that there is no room for hope that they can be diminished or met in any way.’ “ — National: January 26, 1840.